TCRAP_Public/990903.MBX   T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

      Friday, September 3, 1999, Vol. 2, No. 172

                            Headlines


* C H I N A  &  H O N G  K O N G *

CHINA SCI-TECH HOLDINGS: Posts annual loss
DONG-JUN HOLDINGS: Facing action for non-reporting         
GILBERT HOLDINGS: Facing action for non-reporting        
INNOVATIVE INT'L HOLDINGS: Facing action for non-reporting
INNOVATIVE INT'L HOLDINGS: Posts annual loss
PALIBURG HOLDINGS: Expected to sell off US ops of hotel arm
PUDONG DEVELOPMENT: Posts first-half loss
RIVERA HOLDINGS: Posts first-half loss


* I N D O N E S I A *

PT JASINDO: Facing bankruptcy suit
PT MAS MURNI INDONESIA: Fails to meet rehab deadlines
PT PUTRA SURYA MULTIDANA: Fails to meet rehab deadlines
PT PUTRA SURYA PERKASA: Fails to meet rehab deadlines


* J A P A N *

SOGO: May close some outlets to reduce debt


* K O R E A *

DAEWOO GROUP: Needs W11 Tril. to control debt ratio
DAEWOO GROUP: Workouts faltering
DAEWOO GROUP: Daewoo Heavy Inudstries next to be split off
DAEWOO GROUP: 20 foreign cos. Show interest in Seoul Hilton
HYUNDAI GROUP: Chairman under probe, to be interrogated
SAMSUNG GROUP: Chairman may face tax probe


* M A L A Y S I A *

SELANGOR DREDGING BHD: Posts annual loss


* P H I L I P P I N E S *

LANDOIL RESOURCES CORP.: Faces delisting for non-compliance
PHILIPPINE TEL. AND TEL.: Some creditors reject rehab plan
SAN CARLOS MILLING CO.: Faces delisting for non-compliance
SIME DARBY PILIPINAS: Faces delisting for non-compliance


* T H A I L A N D *

BANGKOK METRO. BANK: Pleads with SET not to be delisted
CVD ENTERTAINMENT PLC: Reports ops ceased for 3 subsids.
MD PLC: Reports net loss for 3 quarters in 1998
NAKORNTHON BANK: Pleads with SET not to be delisted
NAKORNTHON BANK: Charged with fraud involvement   
SIAM CITY BANK: Charged with fraud involvement
THAI FARMERS BANK: Compromise reached over Phatra Finance


==============================
C H I N A  &  H O N G  K O N G
==============================

CHINA SCI-TECH HOLDINGS: Posts annual loss
------------------------------------------
Telecommunications product maker China Sci-Tech Holdings'
unaudited net loss has widened to $214.41M in the year to
March 31 from $36.96M the previous year.  The figure
contained an exceptional loss of $171.02M.  Loss before
exceptional items rose to $64.58M from $54.07M previously.  
Audited results will be announced on Septemebr 30.

DONG-JUN HOLDINGS: Facing action for non-reporting         
GILBERT HOLDINGS: Facing action for non-reporting        
INNOVATIVE INT'L HOLDINGS: Facing action for non-reporting
----------------------------------------------------------   
Three more listed companies have failed to report year-end
results on time and may face action by the stock exchange.
An exchange spokesman said it generally reserved the right
to take action against companies that failed to report
year-end results within five months, as required under
listing rules.

Mainland property developer Dong-Jun (Holdings) and car-
related consumer products-maker Innovative International
(Holdings) said their auditors needed more time to clarify
outstanding matters concerning their financial results.  
Linen and garment supplier Gilbert Holdings said its
auditor Arthur Andersen had resigned and it was "trying its
best to find an alternative auditor".

Dong-Jun plunged into an unaudited attributable loss of
$869.83 million, compared with an audited profit of $128.43
million in the previous year.  A deficit on property
revaluation of $325.91 million and a $209.88 million
goodwill write-off on acquisition of a subsidiary made up
the bulk of an exceptional loss of $684.34 million.

Meanwhile, Innovative reported an unaudited net loss of
$863.3 million, compared with an audited profit of $140.02
million a year earlier. A stock provision of $189.9 million
contributed to an operating loss of $255.39 million.  
Provision for bad debts of $263.66 million formed a
significant portion of an exceptional loss of $628.99
million.  The company's chairman, vice-chairman and
managing director were forced to reduce their control of
the company last February as pledged shares equivalent to a
2.7 per stake were sold by a creditor.

Gilbert said it had net liabilities of about $1.45 billion
and bank borrowings of about $878 million as of March 31.  
It added it could no longer maintain a sufficient level of
operations and assets, and suspended trading of its shares
yesterday.  (South China Morning Post  02-Sep-1999)

INNOVATIVE INT'L HOLDINGS: Posts annual loss
--------------------------------------------
Innovative International Holdings announced unaudited net
losses of $863.3M for the year to March 31, after an
exceptional loss of $628.99M caused primarily by provisions
for bad and doubtful debts and deficit on revaluation of
properties.

PALIBURG HOLDINGS: Expected to sell off US ops of hotel arm
-----------------------------------------------------------
Regal Hotels International, the hotel arm of cash-strapped
Paliburg Holdings, is expected to sell its hotel operations
in the US to a Singapore-based company.

Market sources suggested yesterday that the potential buyer
is locally listed CDL Hotels International.  CDL Hotels
International has a strong cash position of HK$3.5 billion
as at 30 June 1999.

Chairman Kwek Leng Beng said earlier that the group is
interested in Regal's assets and is looking for investment
opportunities in markets such as Korea, Thailand and North
America where the group has little presence.  CDL's parent
company City Development is the largest-listed property
developer in Singapore.

Mr Kwek said earlier this month that the group has cash on
hand and stand-by credit line of more than HK$10.2 billion
for acquisitions.  A local news report said Regal has
reached an agreement with a consortium to sell its US hotel
chain for US$200 million (HK$1.56 billion), which is
significantly lower than its internal valuation estimate of
US$400 million for a group of 26 hotels.

Spokeswoman of the Century City Group, the parent of
Paliburg and Regal refused to confirm or deny the report
yesterday and added that there will be a public
announcement once there is an agreement. Senior officials
of CDL Hotels could not be reached for comment.  Century
City, Paliburg and Regal owe about HK$7 billion to banks,
which have informally promised not to require repayment
until chairman Lo Yuk-sui has a chance to work out a
restructuring plan.

The group has asked bankers to extend the freeze on its
debts several times and the deadline has now been extended
to the end of this month.  The sale of US hotel assets is
expected to relieve some of the financial burden.
Paliburg was in talks with China Travel Service (Holdings)
to sell some of its stake in Regal for quite a long time,
but has not reached an agreement.  The hotel company fell
HK$0.02 cents or 2.41 per cent to HK$0.81 per share in
trading yesterday.  (Hong Kong Standard  02-Sep-1999)

PUDONG DEVELOPMENT: Posts first-half loss
-----------------------------------------
Pudong Development Holdings suffered a net loss of $33.99
million in the six months to June 30 compared with a       
$111.54 million loss a year ago. Loss per share was 3.2
cents against 10.5 cents previously. No interim dividend
was recommended. (South China Morning Post  01-Sep-1999)

RIVERA HOLDINGS: Posts first-half loss
--------------------------------------
Rivera (Holdings) recorded a net loss of $13.29 million in
the six months to June 30 against a loss of $ 56.64 million
a year earlier. No interim dividend will be paid. Loss per
share was 1.1 cents compared with 4.5 cents previously.
(South China Morning Post  01-Sep-1999)


=================
I N D O N E S I A
=================

PT JASINDO: Facing bankruptcy suit
----------------------------------
The state-owned insurance company PT Jasindo is facing a
bankruptcy suit from Chinatrust Commercial Bank of Taiwan
over global notes worth US$ 5 million issued by a private
Indonesian company PT Tripatria Citra Sarana.

PT Tripatria Citra Sarana Jasindo floated global notes
worth US$ 50 milion in 1997 and Chinatrust bought US$ 5
million worth of the notes with Jasindo as the guarantor.
Jasindo's debt to Chinatrust fell due on July 26 and the
debts increased with unpaid interest of 9.75% a year since
May 6, 1998.  

The bankruptcy suit was filed at the Central Jakarta
commercial court.  Jasindo increased the number of state-
owned firms facing bankruptcy suits after Hutama Karya,
Rajawali Nusantara Indonesia and PT Dok & Perkapalan Kodja
Bahari. But the three firms were spared bankruptcy suits.
(Asia Pulse  01-Sep-1999)

PT MAS MURNI INDONESIA: Fails to meet rehab deadlines
PT PUTRA SURYA MULTIDANA: Fails to meet rehab deadlines
PT PUTRA SURYA PERKASA: Fails to meet rehab deadlines
-------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) announced
that three firms have failed to meet debt restructuring
deadlines and now face legal action as a result.

The three companies in question are property firm PT Putra
Surya Perkasa with debts amounting to Rp1.03 trillion     
($ US0.15 billion) and $ US35 million, finance firm PT
Putra Surya Multidana with debts of Rp1.54 trillion, and
hotel and partment firm PT Mas Murni Indonesia with debts
of Rp122.3 billion and $US24.10 million. Their deadline was
August 31.

"There are four options with regard to firms failing to
meet their deadline, including filing bankruptcy suits,
taking action according to bank regulations and taking the
case to court via the state auction agency," Eko S
Budianto, deputy chairman of IBRA, told the Indonesian
Observer.

IBRA said another 89 firms have been allowed an extra month
to meet debt restructuring requirements. The new deadline
for those firms is September 30.  The agency also said that
it has made further progress in the restructuring of Rp47
trillion in the debts of 63 large corporate debtors, 32% of
its current Rp150 trillion debt portfolio.

"The 63 companies represent 3.7% of 1,689 debtors with
outstanding amounts of more than Rp5 billion per obligor,"
he said, adding that the 63 debtors were mostly from the
petrochemical industry (23%).

The others are from the trade sector, including holding
companies (14%); automotive (12%); property (11%); and toll
roads (7%). Eko said the listed cement maker PT Semen
Cibinong, PT Bimantara Citra and PT Bakrie & Brothers were
among the 63 companies in the restructuring progress.

"Nineteen of the 63 companies are in the negotiation stage
with IBRA, while another 10 have submitted business plans
and restructuring proposals. The other 34 are still under
due dilligence," Eko said.

The remaining corporate debtors are in the process of
inter-creditor discussion, financial audit, appointment of
financial advisors, and formulating the restructuring
proposal.  (Nationwide Financial News  02-Sep-1999)


=========
J A P A N
=========

SOGO: May close some outlets to reduce debt
-------------------------------------------
Japanese department store operator Sogo might close several
of its dozen overseas outlets -- including the one in Hong
Kong -- in a move to reduce its 100 billion yen (HK$7
billion) debt incurred from offshore operations, reports
from Japan said yesterday.  But an executive at Hong Kong
Sogo rejected ideas that the store was under a cloud.

"We are not affected," sales promotion and administration
manager K Kawamoto said, "and no staff will be laid off."
The Osaka-based retailer was said to be considering
restructuring measures, including reduced operations at
overseas stores or closures.  "The company is looking into
ways to cut costs at nine of its stores in Asia, though no
decisions have been made as to how it will be done," head
of public relations at Osaka-based Sogo Hiroshi Mori was
quoted as saying in a Bloomberg report.

Restructuring was seen to be needed as the company sought
to reduce its interest-bearing group debt of 1.7 trillion
yen, including 100 billion yen debt from operations outside
Japan.  Besides Hong Kong, overseas outlets are in
Thailand, Indonesia, Malaysia, Kong, Singapore, Taiwan and
on the mainland.

A Sogo spokesman said there were no plans to restructure
operations at its four stores in Taiwan. In Singapore, a
spokesman for Sogo also denied the report, saying: "We have
not heard from the Japan headquarters of the plan to
close."

Sogo's Singapore operations consist of its 100,000 sq ft
flagship store at Raffles City and a 58,000 sq ft
supermarket and food hall at The Paragon in Orchard Road.
It used to operate a 40,000 sq ft outlet at DBS Tampines
Centre but that closed down last year, a victim of the
tough retail environment here.

Sogo opened its first overseas store in Thailand in 1984
and went on to set up outlets in Hongkong, Malaysia,
Singapore, Indonesia, China and Taiwan. Its outlets in
Spain and Britain have been closed down.    

In April, Sogo said it would sell its flagship Osaka store
this year for more than 30 billion yen and close a store in
Chiba prefecture, near Tokyo, within two years.  Sogo was
also discussing plans with its creditors to lease floor
space in some of its 29 domestic stores to other retailers.
Sogo has forecast group net income of 500 million yen in
the year to February 2000 from a loss of 25.6 billion
previously.  (Hong Kong Standard, Straits Times  01-Sep-
1999)


=========
K O R E A
=========

DAEWOO GROUP: Needs W11 Tril. to control debt ratio
---------------------------------------------------
The crisis-ridden Daewoo business group is estimated to be
in need of about W11 trillion in loan-equity conversions to
lower its debt-to-equity ratio down to 200%.

Lim Chun-soo, a director at the Seoul branch of Goldman
Sachs, presented a paper at an international seminar on the
function of loan-equity swaps in corporate sector
restructuring Thursday, where he claimed that it would take
a total of W11.4 trillion to bring the ailing group's debt
ratio down below the 200% ceiling set by the government.
According to Lim, Daewoo's debt-to-equity ratio stood at
588%, an asset revaluation notwithstanding, as at the end
of last year.

Lim further asserted that the 136 non-financial sector
subsidiaries of the nation's top 30 chaebol would need a
total of W18.7 trillion in loan-equity swaps to lower their
debt ratio down to the 200% mark.  (Digital ChosunIlbo  02-
Sep-1999)

DAEWOO GROUP: Workouts faltering
--------------------------------
One week into the workout imposed on twelve Daewoo
subsidiaries, problems are still plaguing the four major
units. Daewoo Motors, while having full order books is
facing difficulties as suppliers are reluctant to accept
letters of credit, insisting cash.

Daewoo Electronics is experiencing similar problems --
Samsung stopped supplying tubes for its TVs, as banks
refuse to honor previously issued letters. The head of a
contractors group in Kumi said that out of 180 suppliers,
48 were on the verge of bankruptcy and that in Inchon and
Kyonggi insolvencies were much more serious. The
electronics company could not honor W20 billion in cheques
due August 30 and 31 and is considered virtually bankrupt.

Daewoo Heavy Industries are in a slightly better position
as they have been making profits for several years and have
full orders now, but new orders are slow in being
confirmed. As of the end of August it had received US$510
million in new orders, far short of its US$2.9 billion
target. The Matiz minicar, which is popular in Europe has
also seen a production slowdown due to a lack of parts.
(Digital ChosunIlbo  02-Sep-1999)

DAEWOO GROUP: Daewoo Heavy Inudstries next to be split off
----------------------------------------------------------
Financial Supervisory Commission Chairman Lee Hun-jai said
yesterday that Daewoo Heavy Industries will be separated
from its parent, the Daewoo Group, within this month.

Lee said the Korea Development Bank, one of the company's
main creditors, has already taken the necessary steps for
the separation.

"The spin-off process will be completed when the bank
tidies up the flow of funds between Daewoo Heavy and other
group subsidiaries," Lee said.

Following Daewoo Heavy, Daewoo Electronics and Orion
Electric will be separated from the embattled Daewoo Group
next month, Lee said.

"Then, the separation of major Daewoo firms from the group
will be completed, putting an end to a group-wide liquidity
crunch."

Lee said creditors and chaebol groups will actively
implement debt-for-equity swaps in the fourth quarter of
the year, as the deadline for corporate debt reduction to
below 200 percent nears.

"Creditors are expected to set up corporate restructuring
vehicles (CRVs) to manage their newly acquired equities and
the firms they have helped to restructure," Lee said.

Lee said when CRVs participate in the management of these
firms based on their equity holdings, they may take over
managerial rights or take bankruptcy procedures. "This
means the workout program enters the second stage," Lee
said.

Lee said that the Daewoo crisis would calm down
considerably once the spin off of Daewoo Electronics and
Orion Electric are completed.  Lee's remarks are
interpreted as implying that in the fourth quarter, many of
the owners of the second-tier chaebol groups now under
workouts may lose managerial rights.  He said the more CRVs
banks set up, the better, because it will enlarge the
market for corporate assets.  (Korea Herald  03-Sep-1999,
Digital ChosunIlbo  02-Sep-1999)

DAEWOO GROUP: 20 foreign cos. Show interest in Seoul Hilton
-----------------------------------------------------------
A total of 20 foreign investors have shown interest in
participating in a public bidding for the takeover of the
Seoul Hilton Hotel, the Daewoo Group said yesterday.

"We closed applications on the international bidding of the
Seoul Hilton Aug. 31. 20 foreign companies, including
world-famous hotel chains, have offered bids," a Daewoo
spokesman said.

The spokesman also said that Daewoo will announce that a
preliminary contract earlier in June with a European
investor, General Mediterranean Holding (GMH), to sell the
moneymaking luxury hotel at $215 million is invalid because
it failed to uphold the contract.  

Daewoo will send off details on the hotel to prospective
buyers, with the deadline for bid proposals set for
September 14.  The spokesman said that Daewoo plans to pick
a successful bidder next month by October 25 after
narrowing down the number of the bidders to three to four
by the middle of this month.

Meanwhile, Daewoo has appointed Jones Lang LaSalle Hotel, a
prominent hotel consulting agency in the U.S., as an
advisor to the international bidding.  (Korea Herald  02-
Sep-1999; Digital ChosunIlbo  01-Sep-1999}

HYUNDAI GROUP: Chairman under probe, to be interrogated
-------------------------------------------------------
Lee Ik-chi, chairman of Hyundai Securities who is suspected
of being engaged in illegal stock trading, will come to the
prosecution for questioning next week.

The Seoul District Prosecutor's office earlier imposed a
travel ban on the 55-year-old elite of Hyundai Group
suspected of having manipulated the stock prices of Hyundai
Electronics.  The prosecutors have also applied for a
search warrant to examine Lee's banking transactions as
part of an investigation into the suspected
misappropriation of company funds.

Eight other top executives of Hyundai are also in the
prosecutors' list for their involvement in the allegedly
unlawful business activities.  According to the
prosecutors, Lee instructed his company to use 220 billion
won provided by several other Hyundai subsidiaries to
illegally sell and purchase Hyundai Electronics shares
between April and November 1998, doubling their per share
price.

The market value of the shares is currently estimated at
32,000 won, which translates into 350 billion won illegal
capital gain for the group.  Hyundai, however, flatly
denied the allegation, saying that the group may have
driven up the price of Hyundai Electronics stocks by
purchasing them, but is not guilty of stock manipulation as
the shares have not been traded.

Apart from the alleged violation of the Securities Trading
Law, Lee is severely criticized for misleading local
investors by painting a rosy picture of future prospects of
the local bourse in order to market Hyundai's financial
products.  Lee has been dubbed "com-dozer," a reference to
his management style, which combined the computer-like
precision with the bulldozer-like force.

Lee's incredible business drive was manifested in the
record sale of Hyundai's "Buy Korea Fund," which triggered
the rapid recovery of the domestic securities market for
investment trust fund products.  Initiating the bull run of
the local stock market, the Fund has become a big hit.
Just two months after its launch, the Fund attracted over 5
trillion won from investors, making it the biggest
securities investment item Korea has ever produced.

While the initial subscription goal of the Fund had been
set at 10 trillion won, the actual figure has surpassed the
target to reach the 11-trillion won mark only within six
months.  The success of the Fund is attributed to the fact
that the nation's largest conglomerate was behind it and
the Fund's patriotic message emphasizing on the solid faith
in the nation's rapid recovery from the 1997 financial
debacle.

But more importantly Lee's aggressive forecast on the KOSPI
reaching the 2,000 mark in three years served as key to
drawing in huge support from mostly individual stock
investors.  When other financial experts dismissed his
projection as impractical, Lee responded by raising his
forecast even further, saying the KOSPI would reach the
6,000 mark by the year 2005.

Following the com-dozer's control of the company in 1996,
Hyundai Securities joined the top three firms in the
securities market.  Last year, it climbed another notch to
the second place, only behind Daewoo Securities.   With
Daewoo Securities recently suffering from the financial
crisis of its parent group, Hyundai's securities arm headed
by Lee has been preparing to take over the top place in the
market.

However, not everyone admires the drive of Lee, former
personal secretary to legendary group founder Chung Ju-
yung.  Lee's critics within the local securities industry
say that his aggressive management style was too risky for
the leader of a major financial corporation.  They say that
Lee's high hopes eventually led him to be involved with
such incidents as stock manipulation scandal.

"Lee's hopes were set too high. His dream of doubling the
KOSPI within a couple of years now seem indeed far to be
realized," critics say.

With Lee and other eight Hyundai top executives on the
prosecution's blacklist, market participants are no longer
concerned about the legality of the group's securities
marketing.  (Korea Times  02-Sep-1999)

SAMSUNG GROUP: Chairman may face tax probe
------------------------------------------
Stepping up pressures on the slow-moving chaebol reforms,
tax authorities said yesterday that Samsung Group Chairman
Lee Kun-hee may face a tax probe on charges of illegally
handing over wealth to his offspring.

Ahn Jung-nam, administrator of the National Tax Service
(NTS), said that computer-based analyses of stock and
convertible bond transactions between Chairman Lee and his
eldest son, Jae-yong, are now underway.

"If any signs of unpaid taxes are found, tax probes into
the Samsung chairman and his families cannot be ruled out,"
Ahn said in a news conference.

Lee has long been suspected of unlawfully turning over the
controlling stake in unlisted Everland and Samsung Life
Insurance to Jae-yong, now a graduate student, under the
management-right succession scheme, anti-chaebol activists
claimed. The chairman himself was accused of raising his
stake in Samsung Life from 10 percent to 26 percent this
year, using secretly inherited money from his father and
Samsung founder Lee Byung-chul, the activisits said.

"In a bid to crack down on illegal wealth inheritance by
the wealthy classes, the government will expand tax
supervision to other chaebol-owner families," said Ahn of
the NTS.

In this regard, about 1,200 people who bought luxury
apartments larger than 290 sq. meters in Seoul and nearby
areas this year will be asked to identify their funding
sources by the year's end, he noted.  Asked about Hyundai
Electronics' unfolding stock-manipulation scandal, Ahn
vowed to launch probes into possible tax evasion by Hyundai
Group companies as soon as the prosecution's investigation
is completed.

His remarks immediately raised the possibility that Hyundai
Securities, Hyundai Heavy Industries, Hyundai Merchant
Marine and other major affiliates will come under strict
tax probes this fall. But he refused to comment on the
ongoing tax probes into the Hanjin Group, the Bokwang
Group, one of Samsung's satellite conglomerates and the
Segye Times, a Seoul-based daily.

Analysts say that the tax authorities' sudden get-tough
campaign against chaebol owners appears aimed at putting
pressure on reform-shy conglomerates.  Laying out new
chaebol-reform tasks, President Kim said last month that
the government will sharply raise inheritance and gift tax
rates in a bid to ban the transfer of wealth and managerial
rights among chaebol owner families.

But the chaebol and their trade associations vowed to
resist the new government policy, saying that imposition of
excessively heavy gift taxes will weaken entrepreneurship
and spawn adverse effects, such as overseas wealth
smuggling and expansion of the underground economy.
Thus, the analysts are linking the prosecution's
investigation into stock manipulation charges by Hyundai
and Kumho groups to the growing government-business feud
over chaebol reforms.  (Korea Herald  03-Sep-1999)


===============
M A L A Y S I A
===============

SELANGOR DREDGING BHD: Posts annual loss
-----------------------------------------
Selangor Dredging Bhd has posted a pre-tax loss of
RM10.69mil on the back of lower turnover of RM35.18mil
compared with a RM6.26mil profit and a turnover of
RM46.53mil in 1998.

The company is confident of returning to the black this
year,however, after the group recorded a substantial
improvement for the five months ended August this year.

According to its managing director Teh Lip Kim, the company
would return to profitability in the current financial year
as it has also written off all its losses made during the
last financial year ended March 31, 1999.  The group has
also managed to repay its bank borrowings totalling
RM50mil, Teh told reporters after the company AGM
yesterday.

"The loan was paid from the proceeds raised through the
issuance of the rights issue exercise, which was completed
in July 1999," she said.

The group managed to raise proceeds of RM59mil from the
issuance of 159.98 million shares of RM0.50 sen each.
Teh said the group's losses for the last financial year was
mainly due to the high interest in its bank borrowings.

"Now we have managed to save RM6.5mil (from interest
payments), and with this we are able to concentrate in
expanding our investments," she said.  (Business Times  
02-Sep-1999)


=====================
P H I L I P P I N E S
=====================

LANDOIL RESOURCES CORP.: Faces delisting for non-compliance
SAN CARLOS MILLING CO.: Faces delisting for non-compliance
SIME DARBY PILIPINAS: Faces delisting for non-compliance
-----------------------------------------------------------
Three publicly listed companies are set to have their
public exposure withdrawn by the Philippine Stock Exchange
(PSE) on mounting maintenance fees and non-compliance with
reportorial requirements.

Joseph Roxas, PSE board governor and chairman of the
Listings Committee said the PSE has requested corporate
regulator Securities and Exchange Commission (SEC) to
delist holding firm and tire maker Sime Darby Pilipinas,
Inc. (SDP), sugar miller San Carlos Milling Co. (SCM) and
Landoil Resources Corp. (LRC).

For SDP, the delisting was a welcome move as it opted to
withdraw its listing from the Exchange since last year.
Effective yesterday, shares of SDP were suspended due to
the filing by the PSE of the request for delisting with the
SEC. SDP has been dormant in its trades since it applied
for voluntary delisting last year. It would be recalled
that SDP requested for voluntary delisting of its shares
due to the prevailing weak market conditions brought about
by the regional crisis.

Meanwhile, sugar miller SCM will be delisted on grounds of
non-compliance to reportorial requirements. Landoil filed
for dormancy during the late eighties, PSE sources said. It
closed its operations in 1994.  (Business World  02-Sep-
1999)

PHILIPPINE TEL. AND TEL.: Some creditors reject rehab plan
----------------------------------------------------------
Weighed down by the absence of a much-needed investor,
listed firm Philippine Telegraph and Telephone Co.'s (PT&T)
debt-restructuring proposal, which hinges on the infusion
of fresh capital, was thumbed down by some of the creditor
banks, well-placed sources said.

But Santiago-owned telecom firm has yet to get response
from creditor banks' on the evaluation of the company's
debt restructuring proposal.  PT&T senior vice-president
for Finance Gerardo R. de Leon told BusinessWorld in a
telephone interview, the company has yet to receive a
formal notice from creditor banks on the status of the
restructuring proposal.

"We do not want to comment yet for we have to wait for
their response but we view it positively. We also want this
whole thing to be finished, to move forward, rather
expeditiously," Mr. de Leon said.

The beleaguered company is also faced with another setback
after its contract with financial adviser Buenaventura,
Filamor and Echauz (BFE) expired last August 26, sources
said.  Sources said BFE, likewise the financial adviser of
sister company Capitol Wireless, Inc. (Capwire), is not
likely to remain as PT&T's consultant for the rescheduling
of its almost seven-billion-peso (US$177 million at
PhP39.655:US$1) obligations.

For PT&T's part, Mr. de Leon clarified that BFE did not
resign from the company. He said it declined to renew its
contract.

"Both parties have agreed to accept BFE's nonrenewal of
contract as financial advisor," said Mr. de Leon.

BFE was tapped by PT&T stockholders last year to assist the
company in its debt restructuring plan. It was also the one
in charge of handling PT&T's search for a foreign partner.
He added PT&T will not be looking for a new financial
advisor since BFE left the company with several studies and
models which can still be modified to submit to its
creditors.  Last Monday, creditor banks of PT&T agreed to
come up within 60 days a decision on whether or not to
pursue debt restructuring negotiations with the company.

"The management restructuring committee will study whether
there would still be a viable restructuring plan for PT&T,"
one of the sources said.

The management restructuring committee is comprised of two
PT&T representatives and two or four from creditor banks,
the source added.  Sources said the outlook for the cash-
strapped firm is bleak without a white knight.

"Debts cannot be paid on normal terms without new money.
PT&T cannot even pay for the interest on the money it is
(currently) generating," the sources said.

Without a strategic investor, the sources added PT&T may be
"viable" only if the repayment term is extended at a
"ridiculous" term.  "PT&T may be viable in 10 to 15 years
if there is new money. Without fresh capital, the company
may still be viable, as long as the amortization can be
extended at a ridiculous term, like 20 to 30 years," the
source added.

Another source said PT&T may become viable if creditor
banks agree to convert their loans into equity.  "This
would lessen the company's debt burden. There will be less
interest and principal to pay. PT&T will be able to use the
extra cash for its operations," the source added.

Meanwhile, if debt restructuring talks completely break
down, the sources said secured creditors will initiate
foreclosure proceedings.

"Assets could either be sold lock, stock and barrel or
leased out or franchised to other telecom companies," the
source said.

Under the proposed rehabilitation plan submitted to
creditor banks last June 23, PT&T will source about $12
million in fresh funds from an investor. The amount will be
used to pay half of the past due interest payments, which
have summed up to PhP838 million (US$21 million), the
source said.

Half of the loans will then be converted into PT&T
preferred shares and principal obligations to each creditor
bank will be classified as "senior debt" and "subordinated
debt."

The senior debt, which would account for 68% of PT&T's
borrowings from each bank, will have a nine-year repayment
term, with two years grace period, the source said.
The remaining 32% subordinated debt will only be paid after
the loans classified as senior debt have been serviced, the
source added.  Interest rates on the first year will be
pegged at 4% and 6% for dollar-denominated and peso-
denominated loans, respectively.

On the succeeding years, the dollar loans will earn a
maximum 8% interest rate or 1% over the London Interbank
Offered Rate, the source said. The peso loans will have a
1% plus Treasury-bill rate.  PT&T was earlier in talks
withQualcomm, Inc. as potential partner. However, the US-
based telephony supplier backed out from the deal it was
acquired by Ericsson.  A BusinessWorld source, in a
separate interview, said the company cannot be viable
without capital infusion.  (Business World  02-Sep-1999)


===============
T H A I L A N D
===============

BANGKOK METRO. BANK: Pleads with SET not to be delisted
NAKORNTHON BANK: Pleads with SET not to be delisted
-------------------------------------------------------
Two nationalised banks, Bangkok Metropolitan Bank (BMB) and
Nakornthon Bank (NTB), yesterday asked the Stock Exchange
of Thailand not to delist them now that their shareholders'
equity has returned to positive territory.

In a filing to the exchange, BMB explained its shareholder
equity was Bt30.77 billion as of June 30, including
reserves against problem loans in excess of central bank
minimum requirements.  

BMB has been suspended from trading since January last year
following the Bank of Thailand's intervention. The bank
last traded at Bt2.60.  NTB, in a separate filing, said
that on July 15 it had raised its registered capital to
Bt7.003 billion from Bt2 million after a capital write-
down.  As of June 30, the bank reported negative
shareholders' equity of Bt4.8 billion which discouraged
Britain's Standard Chartered Bank from signing an
acquisition deal. That prompted the financial authorities
to intervene in the small commercial bank.

As a result of a capital increase, NTB's shareholder equity
stands at Bt2.2 billion after subtracting from the
registered capital a deficit in retained earnings of Bt5.03
billion and adding Bt233 million in unrealised gains on
investment securities.  NTB is now up for auction. The
central bank is expected to name a lead bidder for NTB this
month from among short-listed investors and begin final
talks on terms of the sale of a majority stake in the
nationalised bank.

Standard Chartered Bank is among the short-listed
investors. It had signed a memorandum of understanding for
the purchase of a majority stake in the bank from the
previous shareholders, but the terms of the agreement --
which included a larger injection of funds from the central
bank's rescue fund than from Standard Chartered -- were
rejected by Thai authorities.

The financial authorities said NTB had to be sold on the
same terms as three other nationalised banks to be
auctioned this year: there would be a yield maintenance
guarantee which will limit financial risks for buyers.
The authorities also plan to sell 75 per cent of BMB this
year and the remaining in the next few years. Besides, they
are also set to privatise Siam City Bank and Radanasin
Bank. These banks are not available for trading but remain
listed on the bourse.

Among foreign banks bidding for one of the four
nationalised banks on sale this year are: Citibank, HSBC
and Overseas Union Bank of Singapore.  The exchange
announced that DBS Thai Danu Bank will list its unit trust
investing in the bank's hybrid debt instruments, known as
Capital Augmented Preferred Shares (Caps) and Stapled
Limited Interest Preferred Shares (Slips), on the bourse
tomorrow.

The hybrid instruments are preferred shares bundled
together with subordinated debentures. Several banks issued
the hybrid instruments earlier this year to attract
investors who were unwilling to buy shares amid the crisis
in the country's financial sector. They sold the
instruments to mutual fund companies which will raise
public money for the investment via unit trusts.
DTDB's unit trust will be the first of its kind to list on
the bourse. Its Caps comprise a total 666.7 million units
at a par value of Bt10 baht each, valued at a total Bt6.67
billion.  (The Nation  02-Sep-1999)

CVD ENTERTAINMENT PLC: Reports ops ceased for 3 subsids.
--------------------------------------------------------
CVD Entertainment Plc informed the SET about the suspension
of its three subsidiaries' operations.  CVD Laser Co Ltd, a
laser-disc sales company, and CVD Interactive -- a sales
company for CD-Rom computer games -- have both been
suspended since Jan 1, this year. CVD Rentcom Co Ltd, which
provides a revenue-sharing service for video centres, has
been suspended since May 1.  (The Nation  02-Sep-1999)

MD PLC: Reports net loss for 3 quarters in 1998
-----------------------------------------------
MD Plc reported a net loss of Bt106.42 million for its
third quarter financial result ending Sept 30, 1998,
improving from a Bt499.65 million net loss over the same
period of 1997.  Its net loss for the first nine months of
1998, however, increased to Bt769.62 million, against a
Bt624.96 million net loss in the corresponding period in
the previous year.  (The Nation  02-Sep-1999)

NAKORNTHON BANK: Charged with fraud involvement   
SIAM CITY BANK: Charged with fraud involvement
-----------------------------------------------
Two local banks and a French one have been charged with
involvement in an alleged 1.8-billion-baht fraud conducted
by the now-defunct Finance One Plc.

If the case proceeds as ordered by the state attorney,
Chakthip Nithibhon, the assistant governor of the Bank of
Thailand could also face charges.  He was the country
manager of Credit Agricole Indosuez at the time of the
alleged offence.

Kitti Patpong-pibul, the deputy governor of the central
bank, might also be investigated as, at that time, he was
the managing director of Nakornthon Bank. The other bank
facing charges is Siam City Bank.  Mr Chakthip denied any
wrongdoing in the note transactions.

"Even though the sale was done with no recourse, there was
proper analysis of the creditworthiness of the issuer,"
said Mr Chakthip.

He said the transactions were in full compliance with the
law and regulations, and denied allegations of collusion
with Finance One. Mr Kitti, meanwhile, refused to comment.

Earlier, Somphote Indaranukul, president of the Siam City
Bank, told the Bangkok Post that he did not believe there
would be any irregularity behind the transactions.  He also
said he did not see what the bank would gain from such an
alleged conspiracy.

The alleged fraud involved the transaction of promissory
notes issued by two subsidiaries of Finance One Plc.
The two firms had discounted the notes to the three banks,
which re-discounted the notes to Finance One on the same
day they obtained the notes.  According to Suphol
Yuthithada, director-general of the Economic Crime and
Resource Department of the Attorney-General's Office, the
police were ordered to file charges against the senior
executives of the three banks.

Other employees of the banks involved in the transactions
would also be charged.  Three executives of the two
subsidiaries were also charged. They were Prapote
Chumwattana, Vichai Srisawai and Apichart Jootrakul.
Last week, Mr Suphol said that he would ask the police to
investigate the three banks to find out whether they were
involved in the fraud.

He announced yesterday that he had ordered the police to
file charges against the three banks. The institutions
allegedly bought promissory notes of Finance One
subsidiaries even though the companies had no stable
businesses.  Ekapak Co, one of the two subsidiaries, was
suffering losses of 1.7 billion baht by the time it
discounted the notes to the three banks.

The other subsidiary, Joint Business Management Co, was
suffering a 92-million-baht loss.  They were not in a
position to honour the notes they had issued and the three
banks would not have accepted the notes from them if they
had no complicity in the fraud, Mr Suphol said.
He said that the state attorney was confident of
successfully prosecuting the three banks.

Earlier, the state attorney had prosecuted Termchai
Pinyawat and Samran Kanokwattanawan, two former managing
directors of Finance One. Together with Pin Chakkapak, the
former president, they were charged with embezzling more
than two billion baht from the company.  Mr Pin has not
been prosecuted yet because he is still at large and the
state attorney believes he is abroad.  (Bangkok Post  01-
Sep-1999)

THAI FARMERS BANK: Compromise reached over Phatra Finance
---------------------------------------------------------
Thai Farmers Bank (TFB) said it "reached a compromise" with
the Bank of Thailand (BOT) on how to share mounting losses
of Phatra Finance, which the country's third-largest bank
this week asked the government to nationalize.

Baker & McKenzie, which is Thai Farmers Bank's legal
advisory, said under the compromise there will be the
establishment of a "semi-Asset Management Corporation" to
manage Phatra Finance's bad assets.  This approach has
never been tried in Thailand before, according to Baker &

McKenzie President Kittipong Urapeepathanapong  BOT
Assistant to the Governor Tharisa Wattanakesa said the
framework for Phatra Finance's deal will benefit all
parties and is expected to conclude within this week.
Thai Farmers Bank must draft a memorandum of understanding
(MOU) and submit it to the central bank to be approved
later by the finance ministry.

Thai Farmers President Banthoon Lamsam didn't provide any
details of the "preliminary agreement" made during a
meeting today with top central bankers.

"I am quite pleased with the way we will solve Phatra
Finance's problems," Banthoon said. "It's an approach that
is acceptable to Thai Farmers Bank, and it enables the
Financial Institutions Development Funds to answer
questions that the public may raise in regard to using
taxpayers' money. In any case, it is impossible that there
would be no losses for Thai Farmers Bank."  The solution,
he added "is based on what is necessary and on feasibility
from an economic standpoint," rather than "passing
responsibility off on others."

Kitti Patpong-pibul, deputy central bank governor, declined
to elaborate or reveal whether the central bank's Financial
Institutions Development Fund would take over the finance
company, a subsidiary of Thai Farmers Bank.  "In principle,
the solution will not affect shareholders or depositors of
Phatra."

Two days ago, Banthoon asked the central bank to take over
its wholly owned Phatra unit, where the default rate about
doubled to 80 percent of all loans since Thai Farmers
bought it outright last year.  Banthoon initially said Thai
Farmers lost 7 billion baht since taking over Phatra, so it
was the central bank's responsibility to pick up any
remaining tab.  That comment upset regulators, who have
seized or shuttered two-thirds of Thailand's financial
institutions in the past two years.

"We have found the solution on the Phatra problem," said
the central bank deputy governor Kitti Patpongpibul.
"All parties have reached an agreement. We will announce
details within a day or two." There will be no impact on
deposits at Phatra, which are all guaranteed by the central
bank, he said.

Phatra had deposits of about 50 billion baht at June 30.
Blanket guarantees on all bank and finance company loans
were pledged in 1997 by the government, shortly before it
shuttered 56 insolvent finance companies. A few months
before those closures, the government tried to keep some of
those firms in business by proposing mergers with the five
"healthiest" Thai finance companies, which at the time
included Phatra. Thai Farmers Bank paid about 6 billion
baht for the 92 percent of Phatra it didn't already own in
two stages in 1997 and 1998.  (Business Day, Bangkok Post  
02-Seo-1999)


S U B S C R I P T I O N  I N F O R M A T I O N

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