TCRAP_Public/990916.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

      Thursday, September 16, 1999, Vol. 2, No. 180


* C H I N A  &  H O N G  K O N G *

G'TEX INDUSTRIAL CO.: Facing petition for winding up
HUITONG INT'L TRUST: Merger candidate with Hainan trusts
POLY TARGET LTD.: Facing petition for winding up
TIFFAN INVESTMENT CONSULTANT: Facing winding up petition

* I N D O N E S I A *

PT PAKUWON JATI: In debt restructuring talks

* J A P A N *

ORIENT CORP.: Expects first-half loss

* K O R E A *

DAEWOO ELECTRONICS: Sale agmt to be signed this weekend
DAEWOO GROUP: Foreign creditors to share in collateral
DAEWOO GROUP: Debt reschedule talks with foreign creditors
DAEWOO GROUP: Sep. 24 bond maturation key milestone
DAEWOO GROUP: Creditors agree to fresh funds for motor unit
DAEWOO SECURITIES: To find buyer through brokerage

* M A L A Y S I A *

AUTOWAYS HOLDINGS: Proposes restructuring scheme
TONGKAH HOLDINGS: Posts second consecutive annual loss

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

MONDRAGON INT'L PHILIPPINES: Expects relief within 60 days

* S I N G A P O R E *

DRAGON LAND: Posts first-half loss

* T H A I L A N D *

EASTERN STAR REAL ESTATE: Completes restructuring
KASET THAI SUGAR CO.: Bribes for rehab plan support?
NAKHON SAWAN INDUS.CO.: Bribes for rehab plan support?
RADIO PHONE CO.: Creditors to ask for bankruptcy
SG ASIA CREDIT: Recapitalization to be done mid November
SINPINYO EIGHT FUND: Posts 1st quarter loss
THAI EKALAK SUGAR CO.: Bribes for rehab plan support?
THAI OLEFINS CO.: Needs shareholder input of standby credit

C H I N A  &  H O N G  K O N G

G'TEX INDUSTRIAL CO.: Facing petition for winding up
The High Court of Hong Kong SAR has scheduled a hearing for
November 17 on the petition of Ng Wing Yi for the winding
up of G'Tex Industrial Company Limited. A notice of legal
appearance must be filed on or before November 16.

HUITONG INT'L TRUST: Merger candidate with Hainan trusts    
The mainland central bank is considering merging Huitong
International Trust and Investment Corp with other debt-
ridden trusts in Hainan, according to foreign creditors.

"They [mainland authorities] informed us that the PBOC has
intervened in this matter and are now considering
converting the trust into a banking institution with
Chinese and foreign ownership, and merging it together with
other trusts in Hainan," a Hong Kong-based Huitong Itic
foreign creditor said.

He said details were scarce but he expected the People's
Bank of China to issue more information soon.  A central
bank offical last month said Hainan International Trust and
Investment Corp, Hainan Provincial Trust and Investment
Corp and Haikou Trust and Investment Corp would be merged
to form a joint-venture bank with foreign creditors through
debt-for-equity swaps.

The new bank, with an initial registered capital of two
billion yuan (about HK$1.86 billion), would be allowed to
conduct foreign-exchange business as well as local-currency
business, and was expected to start operating this month.  
Huitong Itic, originally not part of this merger, had
earlier floated a proposal to swap debt into equity in new
private enterprises to be set up focusing on areas such as
real-estate development.

"All foreign creditors did not agree to that plan . . .
because there was no guarantee for debt and we could not
have confidence in their [the trust's] evaluation of their
assets," the creditor said.

Foreign creditors rejected the plan and said they had been
waiting since mid-August for a new proposal from the PBOC.
They said the idea of setting up a joint-venture bank was
acceptable in principle, though much would depend on the
arrangements for converting debt into equity.  Huitong Itic
is a joint-stock trust and shareholders include the
Industrial and Commercial Bank of China, China Construction
Bank and China Merchants Bank.  The trust said it had 3.77
billion yuan in liabilities against 3.85 billion yuan in
assets.  (South China Morning Post  15-Sep-1999)

POLY TARGET LTD.: Facing petition for winding up
The High Court of Hong Kong SAR has scheduled a hearing for
November 10 on the petition of Ng Tin Chung for the winding
up of Poly Target Limited. A notice of legal appearance
must be filed on or before November 9.

The Singapore-China Suzhou Industrial Park (SIP) is
anticipated to chalk up accumulated losses of US$90 million
(S$151 million) by the end of next year.

However, Singapore and Chinese leaders who oversee the
development of the government-to-government joint venture
expressed confidence that the project would turn profitable
some time.  The chief executive officer of China-Singapore
Suzhou Industrial Park Development Co (CSSD), the
township's developer, said yesterday that yearly losses
averaged US$23-24 million since the park was established
five years ago.

Major-General (NS) Lim Neo Chian said that he expected next
year's loss to be smaller and the cumulative loss since
1994 to reach US$90 million by the end of next year.  The
losses were attributed to interest costs, operating losses
and a one-time write-off on the sale of water and sewage
plants in the SIP.  Maj-Gen Lim gave these figures when he
was briefing Deputy Prime Minister, Brigadier-General (NS)
Lee Hsien Loong, on the progress of the SIP. BG Lee told
Parliament last month that Singapore statutory boards and
government-linked companies have invested US$147 million in

After the briefing, BG Lee co-chaired the fourth Joint
Steering Council (JSC) meeting with Chinese Vice Premier Li
Lanqing.  The JSC, which last met three years ago, sets the
overall direction for the SIP's development. Yesterday's
meeting lasted about two hours.  Vice Premier Li said at a
press conference later that there were several economic
development zones in China.

"At the start, they lose money. This is a general
phenomenon for all economic zones. Later on, they get
returns. In the start-up years, it is natural they may
incur some losses."  He said that most of them had since
turned profitable.  "So, I'm quite optimistic. I'm
confident the SIP will be profitable some time in the
future," he said.

BG Lee, who also fielded questions at the press conference,
said that it was very difficult to say when the project
would be in the black.  He pointed out that there were two
sides to the SIP: the government-to-government cooperation
and commercial ventures.  "The commercial liability is for
commercial parties to decide on," he said.

The JSC, which reviewed the SIP's progress and goals, also
endorsed a Memorandum of Understanding signed between
Singapore and China on June 28 this year.  The MOU followed
19 months of negotiations after conflict arose over the
Suzhou authorities' promotion of a rival park. Under the
agreement, Singapore would hand over to China majority
ownership and management control of CSSD on Jan 1, 2001.

BG Lee said that the MOU provided "a good basis for taking
the project the next step forward and set realistic
objectives and practical ways to advance the project. We
start on a clean slate and with an optimistic outlook," he

Vice Premier Li said that despite the proposed change in
majority share-holdings, the SIP would still be a Sino-
Singaporean project. The JSC reiterated that the "SIP is
the largest collaboration project between the two
governments, the 'priority of priorities' in Sino-Singapore
economic and technological cooperation".

The JSC endorsed the Suzhou government's reassurance that
it would respect the SIP's priority status by recommending
all suitable projects to the SIP, and pre-empt disorderly
competition between the SIP and the rival park. The JSC
also supported reassurances given by municipal, as well as
SIP officials, that their commitment to SIP tenants would
be upheld, and the investors' legal rights and interests

The council also reviewed proposals to enhance the
competitiveness of the SIP, such as setting up an export
processing zone and an information technology software
cluster base there.  BG Lee said that the final achievement
of the SIP, established as a vehicle for Singapore to make
available its experience in economic and social development
to the Chinese side, would be when Chinese officials
adapted and applied the software transfer to the Chinese
environment and outdo the Singaporeans at running the Park.

He said that "Jan 1, 2001, is the first graduation date.
I'm sure after that, there will be continued developments
and there will finally be a sense of 'Yes, we have achieved
what we have set out to do'!"

Asked about the state of Sino-Singaporean ties, BG Lee
responded: "Overall, the relationship has been very good.
SIP has been a significant element in this cooperation but
not the only one.  There are many other areas of
cooperation -- investments, trade and tourism -- and also,
political cooperation is going well."   (Straits Times  15-

TIFFAN INVESTMENT CONSULTANT: Facing winding up petition
The High Court of Hong Kong SAR has scheduled a hearing for
November 17 on the petition of Chan Chi Yuen for the
winding up of Tiffan Investment Consultant Limited. A
notice of legal appearance must be filed on or before
November 16.


PT PAKUWON JATI: In debt restructuring talks
Property developer PT Pakuwon Jati (JSX:PWON) has said that
talks with creditors over the company's debt restructuring
proposals have showed good progress.

Pakuwon president Esron Siburian said last weekend that he
was confident that the company would sign the $ US129.8
million and Rp350 billion debt restructuring deal with its
all creditors by the end of this year. Esron said that
Pakuwon suffered from financial difficulties because it had
to cover a great foreign exchange loss due to its large U.S
dollar debt exposure.

"Pakuwon's U.S dollar obligation was never hedged because
the company received its revenue in dollars," he said.

However, when the monetary crisis - which first hit in mid
1997 - deteriorated, the company began to suffer
financially because its clients paid its dollar-quoted rent
fees in rupiah.  Esron said that in the debt rstructuring
program, Pakuwon would convert some of its debts into
eight-year term bonds. Pakuwon was also ready to repay the
other loans with the company's fixed assets in the form of
cleared land for development, he added.

Pakuwon is one of 85 listed companies on the watch list for
possible delisting by the JSX.  Companies on the watch
list, according to the exchange's listing regulation
are those with unsound equity or doubtful business
prospects as declared by their respective public
accountants.  Pakuwon booked a net loss of Rp744 billion in
1998 as compared to a net loss of Rp114 billion the
previous year.  (Asia Pulse  14-Sep-1999)


ORIENT CORP.: Expects first-half loss
Major consumer credit company Orient Corp. (TSE:8585) says
it expects to report a net loss of 173.2 billion yen (US$
1.56 billion) for the first half through Sept 30, against
4.5 billion yen in profit a year earlier.

The poor outlook reflects 341.2 billion yen in
extraordinary losses necessary to write off bad loans to 12
group firms.  Orico also plans to set aside 47.6 billion
yen in loan-loss reserves for real estate loans for the
half. It expects a pretax loss of 27.6 billion yen,
compared with 7.2 billion yen in pretax profit for the
first half of fiscal 1998.

Though the company will use deferred-tax accounting, it
still expects a net loss of 156.6 billion yen for the full
year through March 2000.  Both dividends will be canceled,
marking the first time for a payout to be skipped since the
firm went public in December 1976.  The company will also
write off nonperforming loans on its own, deciding not
to ask Dai-Ichi Kangyo Bank (TSE:8311) for a waiver.

The company has 700 billion yen worth of loans out to
corporate clients that may turn nonperforming due to the
deteriorating value of collateral.  The firm claims it set
aside reserves for 60% of the loans.  (Asia Pulse  14-Sep-


DAEWOO ELECTRONICS: Sale agmt to be signed this weekend
Daewoo Electronics, which is due to be sold off to Walid
Alomar, will sign the main contract for the deal some time
this weekend.

Hanvit Bank, the main creditor of the electronics firm,
said that the contract would be signed on the precondition
that the two parties may change the terms and conditions of
the sale at a later stage, subject to the agreement of
both. With only operations in advanced countries being sold
off in the current deal, the creditors' group of Daewoo
Electronics said that it would try to find a way to sell
off the remaining members of the firm's global network in a
single package.  (Digital ChosunIlbo  15-Sep-1999)

DAEWOO GROUP: Foreign creditors to share in collateral
South Korea said it plans to allow Daewoo Group's foreign
creditors to share 10 trillion won (S$14.9 billion) of
collateral from Daewoo affiliates with domestic creditors,
moving to allay concerns from overseas investors.
Domestic creditors agreed with the Corporate Restructuring
Coordinating Committee to split the collateral between
domestic and foreign creditors in proportion to their
exposure.  (Bloomberg News, Straits Times  15-Sep-1999)

DAEWOO GROUP: Debt reschedule talks with foreign creditors
The embattled Daewoo Group will meet with representatives
of its foreign creditor banks in Seoul today to discuss
rescheduling of its debts, a group official said yesterday.
Daewoo is reportedly planning to ask foreign creditors to
suspend withdrawal of loans until March 2000, as its local
creditors agreed to do.

Daewoo's request follows the Monday meeting between the
Corporate Restructuring Coordination Committee and Daewoo's
local creditors, in which the creditors expressed
willingness to share with foreign creditors the 10 trillion
won collateral offered by Daewoo in July.  If foreign
creditors accept Daewoo's request, local creditors will put
up part of the collateral they have secured.  (Korea Herald  

DAEWOO GROUP: Sep. 24 bond maturation key milestone
The 24th of September will be another turning point for
Daewoo Group's overseas liabilities as 300 million Deutsch
mark ($180 million) bonds issued by the group mature on
that day. Dresdner Bank AG was the underwriting bank for
the bonds placed in Germany. Since the DM bonds were placed
with individual investors of high income earning groups in
Europe, rather than institutional investors, it will lead
to immediate legal proceedings should Daewoo fail to redeem
the bonds.

"The 24th of this month will be the critical day for
Daewoo's overseas debt issue. The bonds placed in Germany
worth 300 million DM will mature on that day. The question
remains whether Daewoo will be able to redeem the promised
amounts," a foreign banker in Seoul told The Korea Times.
"Besides, the Daewoo bonds are placed with individual
investors like doctors and lawyers. They will take
immediate actions in accordance with international law to
secure their money in case Daewoo does not fulfill its

Once tens of thousands of German investors start taking
legal procedures, it will have a spill-over effect on
Daewoo's other foreign lenders, further complicating the
government-led forced restructuring of the second largest
business giant of Korea, the foreign banker said, urging
that both the financial regulator and Daewoo must come up
with a proper measure to prevent the unfortunate situation.

With a number of legal proceedings by foreign creditors in
Europe already in progress, aimed at freezing Daewoo's
overseas properties and products, most of the group's 240-
plus foreign creditors are now ready to take a similar
course of action to secure their credits.

Foreign banking sources in Seoul contend that throughout
Europe there are over 10 legal cases taken against the
group.  The first legal action was taken on July 17 by
French Netexis Banques Populaires against Daewoo's overseas
subsidiary in Hong Kong for the amount of $10 million.

Bank Brussels Lambert, the second largest financial concern
in Belgium, has filed a lawsuit against Daewoo to secure
the repayment of its $10 million loan to the group's
overseas motor sales firm.  The Belgian bank seized 6,000
Daewoo cars in lieu of its loans to Daewoo Motor Sales
Europe, after the company failed to repay the principal
amount of the debt.  Another German bank filed a similar
action, leading to a freeze of Daewoo's assets in Europe.
(Korea Times  15-Sep-1999)

DAEWOO GROUP: Creditors agree to fresh funds for motor unit
Creditors of Daewoo Motor yesterday agreed to provide 330
billion won ($276 million) to the embattled automaker.
Seoul Bank and other creditors approved a plan to provide
$150 million by purchasing documents against acceptance
(D/A) and $126 million for the opening of import letters of
credit (L/C).

The creditors also decided to send management teams to the
automaker and two other Daewoo units - Daewoo Motor Sales
Company and Diners Club Korea - for which they are

Meanwhile, a bank official said creditors have formed a
consultative body for each of the 12 Daewoo firms put under
a debt-workout program. Each creditors' body will soon
start due diligence on each firm it is taking care of to
finalize workout plans.

For other Daewoo units, creditors of Keangnam Enterprise
and Orion Electric Co. met yesterday for the second time to
discuss providing new loans to the two companies.  The
Financial Supervisory Commission said that the total amount
of financial support creditors have so far decided to
provide to Daewoo firms stood at 1.07 trillion won,
including the 330 billion won to be offered to Daewoo
Motor.  (Korea Herald  16-Sep-1999)

DAEWOO SECURITIES: To find buyer through brokerage
Creditors of Daewoo Securities have decided to find a buyer
for the brokerage privately rather than through a public

Creditors, which took over Daewoo Securities from the
parent group on Aug 31, named Arthur Andersen to oversee
the sales procedures.  The creditor banks will complete
evaluation of the brokerage house by Oct 9, receive tenders
from potential buyers by Nov 6, and sign a deal by Jan 15.
They decided to seek bidders through closed-door process in
hopes to sell the firm as early as possible when sales
conditions are met.  The 10 creditor banks' stake in Daewoo
Securities increases to 32.58 per cent on Sept 21 on taking
part in rights offerings.  (Asia pulse  14-Sep-1999)


AUTOWAYS HOLDINGS: Proposes restructuring scheme
Autoways Holdings Bhd (AHB) has proposed a restructuring
scheme comprising a series of proposals which are necessary
to turn the company around and at the same time, enable its
creditors to receive higher amount of loan recovery than
going into liquidation.

Utama Merchant Bank Bhd said in a statement on behalf of
Autoways yesterday that the proposed scheme would also
allow shareholders, especially the minority investors, to
recover some of their investments in the group. Some of the
proposals are:

*To dispose of 100% or 500,000 ordinary shares in Autoways
Development Sdn Bhd (ADSB), its wholly-owned subsidiary, to
Regu Bersaru (M) Sdn Bhd for RM2 in cash;
*To reduce its issued and paid up share capital to RM5.09mil
comprising 5.09 million shares of RM1.00 each from
RM25.47mil comprising of 25.47 million shares of RM1.00 a
*To set off the share premium accumulated as at Dec 31,
1998, amounting to RM27.21mil against accumulated loss of
AHB; and
*A scheme of arrangement and compromise repayment, which
would involve the group and its wholly-owned subsidiary
Autoways Construction Sdn Bhd (ACSB) in respect of an
aggregate debt of RM262.07mil as at May 31, 1998.  (Star
Online  15-Sep-1999)

TONGKAH HOLDINGS: Posts second consecutive annual loss
Tongkah Holdings Bhd has reported a higher group pre-tax
loss of RM73.04mil for its financial year to June 30, from
RM73.04mil in the previous year.

Group turnover fell to RM431.66mil from RM608.24mil
previously, the company said in a statement when releasing
its results yesterday.  Pre-tax loss at company level eased
to RM50.37mil from RM52.66mil, while turnover declined to
RM5.22mil from RM6.7mil in 1998.  No dividend has been
recommended.  (Star Online  15-Sep-1999)


MONDRAGON INT'L PHILIPPINES: Expects relief within 60 days
Mondragon International Philippines, Inc. (MIPI) expects to
get out of the mess its in within the next two months.
Hopes are high that by November it would have raised $175
million in fresh capital to pay its overdue obligations as
well as move on with the operation of its money-generating

MIPI yesterday informed the Philippine Stock Exchange (PSE)
that it has decided to defer its annual stockholders'
meeting a month later to November 15 from the earlier
schedule of September 20.

"Management deems it will be to the best interest of all
existing security holders if various issues that have
significant effect on the company's continuing operations
be resolved prior to the meeting," MIPI financial
comptroller Pierre Paul S. Buhay said.

These issues include the infusion of funds by a strategic
investor and the payment of 50 million Philippine pesos
(PhP) (US$1.25 million at PhP40.078:US$1) to Clark
Development Corp. (CDC) in compliance with the compromise
agreement entered into by the two parties.  Likewise, MIPI
wants to have the casino re-opened as well as plans for its
creditors finalized before holding the company's annual
shareholders' meeting, Mr. Buhay told the local bourse.

MIPI officials are reportedly negotiating with Macau casino
tycoon Stanley Ho for fresh capital infusion. Earlier,
BusinessWorld sources said the company intends to raise
some $175 million from the sale of a 40% stake to a
strategic investor.  Market talks have it that Mr. Ho,
operator of the famous floating Casino Palace in Macau,
will be joined by a Filipino counterpart who is also into
the "gaming business."

Names which have propped up include local casino and hotel
operator William Gatchalian, bingo online operator Dante
Tan and even casino enthusiast Charlie "Atong" Ang.  MIPI
has said it "is now finalizing arrangements for the entry
of a local and foreign investors into Mondragon and the
subsequent reopening of the Mimosa Regency Casino."

MIPI shares closed PhP3.30 per share, up PhP0.10 per share
from PhP3.20 the other day.  Earlier, creditor banks
thumbed down proposals for a dacion en pago arrangement
with MIPI and likewise chose not to extend any future loans
to the company. MIPI has said total debt exposure have
reached over PhP7 billion (US$174 million), including
payables to the Bureau of Internal Revenue, the Philippine
Amusement and Gaming Corp. and CDC.

The firm has loan exposures with Far East Bank, United
Coconut Planters' Bank, Metropolitan Bank & Trust Co.,
Philippine Banking Corp., TA Bank and Dao Heng Bank.
(Business World  15-Sep-1999)


DRAGON LAND: Posts first-half loss
Hit by a sharp drop in turnover, Dragon Land has reported a
group net loss of $2.85 million for the first half year
ended June 30. This was in sharp contrast to half-time last
year when the company chalked up a net profit of $7.18

Group turnover of the mainboard-listed property developer
for the first six months this year was $2.94 million, down
82 per cent from $16 million. It attributed the plunge in
turnover mainly to golf membership sales of $11.9 million
recognised during the previous corresponding period, while
no golf membership is recognised during the period under
review.  Loss per share was 1.05 cents. No dividend was
declared.  (Business Times, Straits Times  15-Sep-1999)


EASTERN STAR REAL ESTATE: Completes restructuring
Eastern Star Real Estate Plc announced that it had
completed the restructuring of Bt12 million of debt,
inclusive of interest, with Thai Farmers Bank through an
asset swap. The asset-swap debt restructure is the same
method as the recently-completed settlement for Bt129
million owed to Book Club Finance and Securities Plc. The
latter deal was reached on June 29.  (The Nation, Bangkok
Post  15-Sep-1999)

KASET THAI SUGAR CO.: Bribes for rehab plan support?
NAKHON SAWAN INDUS.CO.: Bribes for rehab plan support?
THAI EKALAK SUGAR CO.: Bribes for rehab plan support?
Small creditors of three embattled sugar mills alleged in
court yesterday that sugarcane planters had been offered
bribes to support a new business reorganisation plan.
The creditors alleged that M.R. Pridiyathorn Devakula,
president of the Export Import Bank, and South Sathorn
Planner Co, author of the rehabilitation plan, were behind
the bribes.

The plaintiffs told the Criminal Court that the three mills
owed them about 900,000 baht. The mills' total indebtedness
is 20 billion baht.  The reorganisation plan was designed
to freeze out small creditors and allow big creditors to
take over the Nakhon Sawan-based sugar mills, the
plaintiffs said.

The mills-Thai Ekalak Sugar Co, Kaset Thai Sugar Co and
Nakhon Sawan Industrial Co-are all controlled by the same
management group, led by Praphan Siriviriyakul. The
rehabilitation plans included writing down their capital to
one satang a share.  However, the plans were not acceptable
to the small creditors, who claimed that the plans were to
allow a takeover by major creditors.

Earlier, two other small creditors had filed civil and
criminal suits against M.R. Pridiyathorn and South Sathorn
Planner on a similar charge, while three executives of
Kaset Thai Sugar were arrested on charge of masterminding
the murder of Michael Wansley, an Australian auditor for
South Sathorn.

The three mills' major creditors failed to get approval for
business rehabilitation plans at creditors' meetings held
on September 7-9, but they received postponements of the
meetings to next week.  However, G.N. Intertech Co, a small
creditor of the mills, said M.R. Pridiyathorn and South
Sathorn Planner had bribed sugarcane planters to support
their plans at the meetings next week.

M.R. Pridiyathorn was appointed by Finance Minister Tarrin
Nimmanhaeminda as chairman of a committee to restructure
the debts of sugar mills nationwide. The Exim Bank itself
was also a major creditor of the three mills. Beside M.R.
Pridiyathorn, the Exim Bank and South Sathorn Planner,
other co-defendants include Suphasak Krishnamara, Andrew
Cameron, Traithip Suksupha and David Kennedy, all senior
executives of the planning company. Others named are Visit
Sithiwattanawong, a director and shareholder of the three
sugar mills, and Sombat Kiatchusak, president of the Zone 8
Sugarcane Planters' Association.

On January 21, the Civil Court approved a request by Krung
Thai Bank and other creditor banks to draw up
rehabilitation plans for the three mills and appointed
South Sathorn Planner.  

The plaintiffs said that M.R. Pridiyathorn and South
Sathorn Planner executives had proposed writing down the
mills' capital to one satang a share, and replacing their
existing management, so that the creditor banks would be
able to take over the three mills.  The plaintiffs also
alleged that between March 1 and September 2, 1999, M.R.
Pridiyathorn and South Sathorn Planner executives had told
3,475 planters who were small creditors of the mills that
they would get their debts repaid in full if they supported
the rehabilitation plans.

They were asked to authorise Mr Sombat, the planters'
association president, as their representative. The three
mills owed the planters about 300 million baht.  However,
in the first meeting to approve the plan for Thai Ekalak
Sugar on September 7, the planters changed their minds and
rejected the plan. The plaintiffs told the court that
between September 10 and 13, Mr Sombat had driven a
loudspeaker-equipped car into sugarcane communities and
declared that planters would be fully repaid if they
supported the creditor banks.  (Bangkok Post  15-Sep-1999)

RADIO PHONE CO.: Creditors to ask for bankruptcy
Creditors of Radio Phone Co, a 60-40 joint-venture of
Telecom Holding Co and Jasmine group, will ask the court
next month to declare the company bankrupt.

Creditors will have to face the fact that they will get
nothing back from their loans as the company's total assets
are worth about 10 million baht while its total liabilities
amount to more than 2.4 billion baht.  The company was
established on February 16, 1991, with a registered capital
of 270 million baht, to provide radio network services for
specific groups. However, it was not successful in the
business so it decided to liquidate.

The liquidator has discovered that the company is not in a
position to repay loans borrowed from 325 creditors worth
altogether 2.44 billion baht. The company owes the
Telephone Organisation of Thailand alone 1.65 billion baht.
The creditors therefore filed a bankruptcy suit against the
company in 1998 and the court has ordered its assets

However, officials of the Legal Execution Department have
checked the company's assets and discovered that it has
only two used cars and 150 business debtors worth less than
10 million baht altogether.  (Bangkok Post  15-Sep-1999)

SG ASIA CREDIT: Recapitalization to be done mid November
SG Asia Credit should complete its recapitalisation
programme by mid-November, according to Tarisa Watanagase,
assistant governor of the Bank of Thailand.

She said final approval was pending for SG Asia's
application for state capital assistance.  However, before
state capital can be received, the firm's major
shareholders, Societe Generale and Bangkok Bank, will
inject 6.5 billion baht in new funds to fully cover problem
loans.  Afterward, the Finance Ministry, Societe Generale
and Bangkok Bank would purchase new preferred shares to
raise SG Asia's capital base to regulatory minimums.

Overall, the finance company plans to raise up to 17.5
billion baht in new capital by mid-November.  The French
bank Societe Generale now holds a 51% stake in SG Asia
Credit, with Bangkok Bank holding 39%.  Regulators have
appointed KGI Securities One and Finansa Thai as financial
advisers to help price new shares.  This process is
expected to take about one month.

Shares of SG Asia Credit on the Stock Exchange of Thailand
yesterday closed at 12.25 baht, up 25 satang, on turnover
worth 156.13 million baht.  (Bangkok Post  15-Sep-1999)

SINPINYO EIGHT FUND: Posts 1st quarter loss
Sinpinyo Eight Fund reported first-quarter losses for the
period ending July 31 of 52.36 million baht.  The figure
compared with losses of 108.69 million for the same period
last year.  (Bangkok Post  15-Sep-1999)

THAI OLEFINS CO.: Needs shareholder input of standby credit
The shareholders of Thai Olefins Co (TOC), 49-per cent
owned by the Petroleum Authority of Thailand, will have to
inject an additional US$100 million to $120 million in
standby credit facilities to ensure that the firm has
enough liquidity after adopting a $350-million debt
restructuring plan.

Aditheb Bisalbutr, president of TOC, which is a major
petrochemical producer, said the credit facilities are
required by the lenders if they are going to work out the
huge debt of TOC. Thai Olefins' major creditors are
Industrial Bank of Japan, the Export-Import Bank of Korea,
US Exim Bank and Bangkok Bank.

Under this plan, as major shareholder, PTT is required to
maintain a credit line of $50 million to pay for raw
materials of TOC, while the other shareholders will have to
put down another $50 million to $70 million in sub-
contingency facilities to maintain TOC's liquidity when
olefins prices fall below the CMAI forecast. CMAI is an
industry price monitoring agency.

The credit facilities will be needed when TOC has a
cashflow below the level set for servicing its debt towards
2008.  Besides PTT's 49-per cent ownership in TOC, Bangkok
Polyethylene holds 13.76 per cent; Siam Cement, 13.32 per
cent; Thai Petrochemical Industry, 6.86 per cent; Vinythai
Plc, 5.29 per cent; Bangkok Synthetics Co, 5 per cent; Siam
Styrene Monomer, 4.77 per cent; and National Petrochemical,
2 per cent.

While some of the shareholders are not yet ready to commit
to the additional credit facilities directly, TOC may have
PTT, its major shareholder, provide a loan to support the
lender.  The shareholders will have to arrange for this in
December when creditor banks will consider a vote on the
debt workout plan.

The debt restructuring plan will reach creditors on Nov 8.
According to the plan, if TOC meets conditions set by
creditors, the pay-back period will be extended by another
three years from 2005 to 2008, including a first three-year
grace period. Creditors have proposed a semi-grace period
on payment of principal, with initial payment smaller and
later payments rising more substantially.

However, TOC will negotiate for a full three-year grace
period on principal payment.  Most of TOC's total debt of
$350 million is in foreign currency; including $50 million
borrowed from the Japanese Exim Bank, $200 million from the
Korea Exim Bank, and $30 million from the US Exim Bank,
while it has a Bt1-billion revolving credit from Thai
banks, extendable yearly. Aditheb said TOC is studying the
possibility of a merger with other petrochemical firms.

Thai Olefins expects its net loss this year to be around
300 million baht, down from earlier loss estimates of 800
million baht, thanks mainly to the price rise of olefins
products, especially ethylene and propylene.  The price of
ethylene rose to $529 a tonne last month, an increase of
$22 since June. The August price of propylene was $342 a
tonne, compared to $298 in June.  Market prices are also
moving upward as several olefins plants in the region are
closed for maintenance.

Thai Olefins management will also propose a plan to
rehabilitate its Rayong production process in a bid to
reduce production costs.  According to Mr Adithep, the
company is considering whether to change its feed stock
from naphtha to lower priced natural gas.  In the pipeline
is a plan to boost the company's annual ethylene production
to between 100,000 and 300,000 tonnes from the current
capacity of 385,000 tonnes a year.

In the first half of this year, Thai Olefins had revenue of
3.55 billion baht, down from 5.94 billion baht recorded in
the same period last year. (The Nation, Bangkok Post  15-

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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