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          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

             Monday, September 20, 1999, Vol. 2, No. 182

                            Headlines


* C H I N A  &  H O N G  K O N G *

CHINA APOLLO: Posts first-half loss
DAIDO CONCRETE: Golik Holdings to assume control         
DAN FORM HOLDINGS: Posts first-half loss
DAQING: Implementing restructuring plan
THEME INTERNATIONAL: Giordano Int'l takeover to proceed  
TSE SUI LUEN JEWELLERY INT'L: White knight to buy shares   


* J A P A N *

AOBA INSURANCE: Bought by French retail group


* K O R E A *

DAEWOO GROUP: Foreign creditors pan collateral sharing  
DAEWOO GROUP: Offers foreign creditors collateral share
DAEWOO GROUP: Misses payments on $20 billion in debt
HANJIN GROUP: Renewed focus of NTO investigation
HYUNDAI GROUP: Renewed focus of NTO investigation
KOREA FIRST BANK: Deal reached with Newbridge Capital
KOREA FIRST BANK: Critics say Gov't flubbed sale
KOREA LIFE: Former chair files another lawsuit vs. gov't
SAMSUNG GROUP: Renewed focus of NTO investigation
SEOUL BANK: Capital infusion to take place


* M A L A Y S I A *

TAIPING CONSOLIDATED: Year-end completion for restructuring


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

PHILIPPINE AIRLINES: PNB consents to rehab plan finally


* S I N G A P O R E *

WASSALL ASIA PACIFIC: Posts first-half loss


* T H A I L A N D *

KRUNG THAI BANK: BOT transferring shares to Gov't
NATIONAL FERTILISER: To look for debt-to-equity partner
RADANASIN BANK: UOB the bidding winner, formally Wed.
TELECOM HOLDING CO.: Sells stock to help debt-ridden parent
THAI AUTOMOTOVIVE CO.: Creditors to file bankruptcy suits
THAI FARMERS BANK: Phatra Thanakit deal signing next week
THAI PETROCHEMICAL INDUS.: Aiming for year-end restructure
WATTACHAK GROUP: Revenue dept. forecloses on assets


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

CHINA APOLLO: Posts first-half loss
-----------------------------------
China Apollo yesterday posted a net loss of $13.2M, down
16.5% for the six months to June 30, as though times
continued for health-drink products and tonics.  Loss per
share was posted as 1.62 cents, and no interim dividend was
declared.  Turnover plunged 30.2% to $81M.  Of the
company's main lines, sales of health drinks - tonic milk
drink, mineral water, distilled water and chicken essence -
took a 58% fall from the same period last year.  And tonic
drinks dropped 32%.

DAIDO CONCRETE: Golik Holdings to assume control           
------------------------------------------------             
Steel and construction-materials maker Golik Holdings has
reached a conditional agreement to rescue and take control
of debt-troubled Daido Concrete (HK).

Golik chairman Pang Tak-chung said yesterday more than 20
parties, including 17 bank creditors and other bond and
preference shares holders, had agreed to restructure
Daido's debts of more than $1 billion with a haircut.  Mr
Pang said the restructuring plan would involve debt
reduction and closure of loss-making businesses.

"Daido actually has a couple of profitable operations,
including light-weight concrete manufacturing, which would
have synergy with some of Golik's businesses," he said.

He pointed out the Housing Authority was a big customer of
Golik's welded wire mesh and Daido's light-weight concrete.
Finance director Sammy Ho said Golik had arranged bank
financing to fund the rescue bid, and that he was confident
Daido would not post significant pressure on Golik's bottom
line.  He expected Golik's shares would resume trading
shortly upon an announcement on the deal. (South China
Morning Post  18-Sep-1999)

DAN FORM HOLDINGS: Posts first-half loss
----------------------------------------
Dan Form Holdings suffered a net loss of $8.7M following a
66% drop in turnover to $48.2M for the six month to June.  
The group attributed the loss to "decrease in rental
income, the temporary suspension of securities trading
activities and no sales revenue being recorded from the
Xidan project".

DAQING: Implementing restructuring plan
---------------------------------------                   
The mainland's largest crude oil producer, Daqing oilfield,
has started restructuring to pave the way for the multi-
billion dollar overseas listing of parent China National
Petroleum Corp.  The news came after reports about
resistance from Daqing oilfield against restructuring due
to concerns about massive job cuts.

Under the restructuring plan, the oilfield has identified
24 units, including oil production, refining and marketing
operations with their 106,000 employees as its core
business, Xinhua news agency reported.  Included in the
non-core business were more than 50 units with a combined
workforce of more than 180,000, which were involved in
oilfield drilling and exploration, infrastructure,
education, health, water, electricity and
telecommunications.  The restructuring formed part of the
reform of large state-owned enterprises and the
establishment of a modern enterprise system.

Daqing Petroleum Administration Bureau party secretary,
Zhang Shuping, was quoted as saying the division between
core and non-core business would allow more exploration and
investment in technological upgrades.  Daqing oilfield is
the largest enterprise under CNPC and a key asset in its
prospective listing vehicle. Its annual crude oil
production has been above 50 million tonnes in the past 20
years, accounting for more than 40 per cent of the
country's total.

Market sources said CNPC had been proceeding rapidly with
its preparation for the global share offer, which could be
the mainland's largest listing with an estimated size of
about US$8 billion.  Rumours have it that the company aimed
to float as early as November but market observers
questioned whether the timetable was achievable.  The issue
is sponsored by Goldman Sachs and China International
Capital Corp.  (South China Monring Post  17-Sep-1999)

THEME INTERNATIONAL: Giordano Int'l takeover to proceed    
-------------------------------------------------------
Struggling fashion retailer Theme International is to
proceed with negotiations for a takeover by retailer
Giordano International.

After a long board meeting yesterday, Theme directors paved
the way for advanced negotiations with Giordano and a
possible end to the company's 18-month search for a white
knight.  However, the offer is subject to the approval of
Theme's bank creditors who were owed about $242 million on
March 31. A group of 13 bank creditors led by HSBC is
expected to respond to Giordano next week.

A Theme spokesman said the company would also compare
Giordano's offer with investment proposals by two
undisclosed parties.  Giordano's offer is to repay only 12
per cent of Theme's debts while taking up 50.5 per cent of
the company through new share issues at a massively
discounted price, plus convertible notes. (South China
Morning Post  18-Sep-1999)

TSE SUI LUEN JEWELLERY INT'L: White knight to buy shares   
--------------------------------------------------------     
Ailing jewellery retailer Tse Sui Luen Jewellery
International has disclosed the identity of its white
knight as Wong Wan-kwong, one of its suppliers. Burdened
with $900 million outstanding debts on February 28, Tse Sui
Luen said Mr Wong, through his wholly owned East Giant
Investments Holdings, would subscribe to new shares in the
company equivalent to 16.6 per cent of enlarged share
capital.

Mr Wong's private company, Wong Wan-kwong Jewellery,
supplies jewellery products to Tse Sui Luen and is owed
$700,000 by Tse Sui Luen.  East Giant will subscribe to 78
million new shares at 25 cents a share, or a 4.17 per cent
premium to the closing price on September 9, the last
trading date. Tse Sui Luen is expected to resume trading
today.  The proceeds of $19.5 million will be purely used
as working capital. Tse Sui Luen said it was still in talks
over a rescheduling of its debts.  (South China Morning
Post  17-Sep-1999)


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

AOBA INSURANCE: Bought by French retail group
---------------------------------------------
Artemis SA, the holding company of the French retail group
Pinault-Printemps Redoute SA, will purchase Aoba Life
Insurance Ltd. for 25 billion Japanese yen ($237.75
million), the Life Insurance Association of Japan said
Friday.

Aoba Life was set up by the association in June 1997 to
manage the leftover contracts of failed Nissan Mutual Life
Insurance Co. It does not underwrite new policies.
Artemis won't alter the contract terms for Aoba's
policyholders, such as promised return, and will keep
employees at the insurer, the association said.
Artemis is the investment vehicle of French financier
Francois Pinault.

Although the association and Artemis entered final sale
negotiations early this year, the talks broke down in
February over the price the industry body was asking for
Aoba. But the association later decided to lower its
target in order to speed up the sale.  Nissan Mutual was
the first life insurer that failed in Japan since the end
of World War II.  The funds from the sale will go to the
Life Insurance Policyholders' Protection Corporation of
Japan, and be used to pay back the Life Insurers
Associations' loans. (Dow Jones News, NewsHound  18-Sep-
1999)


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

DAEWOO GROUP: Foreign creditors pan collateral sharing
------------------------------------------------------
Foreign creditors of South Korea's Daewoo group have showed
little enthusiasm for the debt-ridden conglomerate's offer
to share some collateral with them in return for a foreign
debt freeze until March next year.  Foreign bankers in
Seoul said yesterday that they wanted Daewoo to come up
with better terms and they questioned the value of the four
trillion won in collateral Daewoo had offered to divide
among foreign and local creditors.

"Without an assurance for the repayment of our loans in the
future, we cannot agree to a standstill on the Daewoo debt
until March," said a foreign banker who attended a meeting
on Thursday between Daewoo and the foreign creditors'
eight-member steering committee.

The committee was formed after the Aug 18 meeting between
Daewoo and foreign creditors to bring about 200 foreign
lenders into the group's restructuring. The eight are Arab
Bank, Bank of Tokyo-Mitsubishi, Dai-ichi Kangyo Bank, Chase
Manhattan Bank, Citibank, National Australia Bank, HSBC
Holdings and ABN Amro.

"We cannot see any progress in talks with Daewoo since then
[August 18]," the foreign banker said. "Under the current
terms and conditions, we cannot persuade other foreign
banks to accept the offer."

Daewoo acknowledged yesterday that the foreign creditors
wanted "preference" over local lenders.

"While the Committee of Foreign Bank Creditors did not
reject the Daewoo proposal, the committee continues to seek
a preference over domestic creditors," Daewoo said in a
statement.

But another foreign banker close to the committee said:
"The offer was rejected with strings attached. It's very
complicated but to make a long story short, we eventually
want either the government or organisations with high
credibility to guarantee payment on our loans."

Daewoo, saddled with nearly 60 trillion won in debt, owes
US$5.05bil to foreign creditors, of which US$2.95bil is due
by the end of this year. No further meetings between
foreign creditors and Daewoo were scheduled.  Fears of
another financial crisis related to Daewoo's woes have
depressed domestic financial markets.  (Reuters, Star
Online, South China Morning Post  18-Sep-1999)

DAEWOO GROUP: Offers foreign creditors collateral share    
-------------------------------------------------------
Daewoo Group, the ailing South Korean conglomerate,
yesterday sought a reprieve on US$6 billion (S$10 billion)
in overseas debt by offering foreign creditors a share of
domestic collateral and a say in asset sales.

In its latest effort to stay afloat, South Korea's second-
largest business group asked foreign bankers representing
200 overseas creditors to postpone interest and principal
payments on the debt until March.   In return, Daewoo
proposed that they share in 4 trillion won (S$6 billion) of
collateral offered to domestic creditors in July, and that
they join the local creditors on a committee overseeing
asset sales, said a Daewoo spokesman.

"We're trying to show convincingly that Daewoo is
determined to reform, survive and repay debt," he said. "We
are willing to let foreign creditors make equal claim on
the 4 trillion won worth of collateral that the group had
provided to local banks last July. Since foreign creditors
have not offered any fresh capital to the group, they will
only have access to 4 trillion won out of the total 10
trillion won ($8.3 billion) package."

Without help from foreign creditors, Daewoo's restructuring
efforts could falter, forcing it into Korea's biggest
bankruptcy.   Last month, Natexis Banques Populaires,
France's fifth-largest bank, sued Daewoo to recover a US$10
million loan, sparking concern other lenders would follow
suit.  Several unnamed foreign creditors have threatened to
seize Daewoo assets overseas to ensure recovery of their
debts, said a spokesman.  

However, the steering committee headed by Chase Manhattan
Bank, HSBC and Tokyo-Mitubishi Bank, did not endorse the
plan during the meeting, requesting Daewoo to come up with
a detailed plan for dividing the collateral among local and
foreign creditors.  (Bloomberg News, Straits Times, Korea
Times  17-Sep-1999)  

DAEWOO GROUP: Misses payments on $20 billion in debt
----------------------------------------------------   
Daewoo Group's inability to pay its debts pushed a key
measure of Korean bankruptcy to a 20-month high last month,
raising doubts about the survival of the country's second-
largest conglomerate and its suppliers.  The amount of debt
in default jumped more than 12-fold last month from July,
as Daewoo Group companies missed payments on 12.3 trillion
won (S$20 billion) of debt, or 94 per cent of the total
unpaid, the Bank of Korea said.

The ratio of promissory notes in default against those on
issue -- a measure of corporate solvency -- rose to 1.12
per cent, from 0.09 per cent in July.  That is the highest
since December 1997 and up from an average 0.38 per cent
last year, when the recession forced a record 22,000 firms
into bankruptcy.

The report signals that Daewoo's debt crisis is worsening,
even after its creditors agreed to extend debt and
principal payments and provide fresh loans to prevent it
from going under.  A collapse of Daewoo, laden with US$57
billion (S$97 billion) in debt, could spark bankruptcies
among its 10,000 suppliers and sub-contractors.

"The trend won't let up over the coming months, as Daewoo's
restructuring plans are not something that can be done in a
day or two," said Mr Seo Tae Suk, a central bank official.
"What worries people is that the fallout may spread to
other companies, including Daewoo's suppliers."

That could derail Korea's economy, recovering from its
worst recession in almost five decades. The economy
expanded 7.3 per cent in the first half, and is expected to
grow 8 per cent this year, according to the central bank.

Daewoo's debt masked a decline in other delinquent lenders.
Not counting Daewoo, the ratio of notes in default was 0.07
per cent last month, and the number of corporate
bankruptcies fell to 482 from 519 in July.  Daewoo
companies are not counted in the bankrupt tally.   
(Bloomberg News, Straits Times 18-Sep-1999)  

HANJIN GROUP: Renewed focus of NTO investigation
HYUNDAI GROUP: Renewed focus of NTO investigation
SAMSUNG GROUP: Renewed focus of NTO investigation
-------------------------------------------------
Korea's business groups have been placed on their toes
following Friday's allegations of massive tax fraud on the
part of Bokwang group head Hong Suk-hyun. One official at
the Federation of Korean Industries (FKI) said that many
view the National Tax Office's (NTO) investigation of Hong
as a warning to chaebol owners dragging their feet on
reform.

Three business groups paying particularly close attention
to the progress of the investigation, which has now been
turned over to the prosecutor's office, are Hanjin, Hyundai
and Samsung.  

Hanjin, which was the subject of a two-month NTO
investigation, has been awaiting an announcement of the
results of the probe. Hyundai, the nation's largest
chaebol, is currently being investigated by the prosecution
for alleged stock price manipulation of Hyundai Electronics
shares and likely fears that the Bokwang case will lead to
intensification of the investigation. Group chair Chung
Mong-hun has been summoned to appear for questioning Sunday
in his capacity as head of Hyundai Electronics.

There is also likely much sweating going on at Samsung,
with allegations that members of the group's Lee clan
illegally presented family members with gifts of Samsung
Life Insurance stock, possibly in a bid to avoid taxes.  
(Digital ChosunIlbo  18-Sep-1999)

KOREA FIRST BANK: Deal reached with Newbridge Capital
-----------------------------------------------------
South Korea said on Friday it had reached final agreement
with a U.S. investment fund to sell off a bank, winding up
nine months of tough talks and easing concerns about its
commitment to financial restructuring.

Financial Supervisory Commission's director-general Nahm
Sang-duck told a news conference Newbridge Capital would
pay 500 billion won ($415.3 million) to acquire 51 percent
of equity in Korea First Bank.  He also said the U.S. fund
held the right to acquire an additional five percent of the
bank's equity three years after the takeover is concluded.

"Based on the terms of investment just signed, both sides
agreed to conclude the sale of Korea First Bank as early as
possible," Nahm said.  "The sale of Korea First Bank marks
the first case in which South Korea sells a local bank
overseas. We have become able to reaffirm our country's
commitment to restructuring its financial sector."

South Korea and Newbridge signed a memorandum of
understanding on the deal at the end of last year but
follow-up negotiations have come under spotlight,
especially after another bank sale deal collapsed last
month.  The government declared termination of talks with
HSBC Holdings Plc on selling Seoulbank, which the
government nationalised last year along with Korea First in
the process of financial restructuring.

But terms of the Newbridge deal are most likely to come
under fire domestically as the value falls short of $600
million that local media reports have said Newbridge agreed
to pay under the previous memorandum of understanding.  The
fresh deal could stir controversy also because the
government had to inject 5.3 trillion won of funds into
normalising the bank's management in June while follow-up
negotiations with Newbridge had stalled.

Nahm said the South Korean government agreed to buy back
from Korea First Bank loans should they be defaulted over
two years after the acquisition is concluded.  The
government also agreed to make compensation on the expenses
required for the bank to build provisioning on loans that
turn bad over two years after the acquisition, he said.

He said Newbridge would take due measures required to keep
the bank's ratio of net worth to total assets at three
percent or higher and at the same time its risk-weighted
capital adequacy ratio at 10 percent or higher.  Analysts
have said the delayed progress in selling off the two banks
indicated that a stronger-than-expected recovery of the
crisis-hit economy had made the Korean government less
desperate than it was at the height of a crisis some 20
months ago.

South Korea's gross domestic product posted a sharp 9.8
percent growth between the second quarters of 1999 and 1998
and is expected to grow by about eight percent for the
whole year, compared with a 5.8 percent contraction for
1998.  ($1-1,204 won) (Reuters, NewsHound, Digital
ChosunIlbo  17-Sep-1999)

KOREA FIRST BANK: Critics say Gov't flubbed sale
------------------------------------------------
Just one day after the government's Friday announcement of
the W500 billion sale of Korea First Bank (FKB) to U.S.
investment firm Newbridge Capital, criticism has already
surfaced that the government undersold the bank. The W500-
billion sale price falls far short of the W6.8 trillion in
public funds the government has spent to rescue the
troubled bank, of which 5.7 trillion went into equity
participation and recapitalization and W1.1 trillion to
purchase non-performing loans.

Although the formal sales contract remains to be closed,
the agreement signed by the two parties is a legally
binding contract, the terms of which will hold. One
possible point of conflict in settling the final contract
remains, however, with the signed agreement failing to
stipulate whether Newbridge will be obliged to retain the
current workforce.

According to the terms of the sales agreement, the
government will also have to inject additional funds into
KFB to boost its capital adequacy ratio. Taking this into
account, a total of about W10 trillion in public funds will
have been pumped into KFB. Once KFB is normalized and its
shares are trading at W50,000, the government expects to be
able to recoup W5.5 trillion. W500 billion of that amount
will go towards covering the purchase of KFB.

According to Professor Chung Woon-chan of Seoul National
University, the government had little choice but to sell
either KFB or Seoul Bank in order to restore international
confidence, but any such gain to be made from the sale of
KFB has already been halved due to the long amount of time
it took to close the deal.   (Digital ChosunIlbo  18-Sep-
1999)

KOREA LIFE: Former chair files another lawsuit vs. gov't
--------------------------------------------------------
Defying the government order to reduce capital of the
insolvent Korea Life Insurance, its jailed former-Chairman
Choi Soon-young has filed another lawsuit against the
government to protect his shareholdings.

Choi's legal agent Woobang applied for a court order again
Thursday to stop the Financial Supervisory Commission (FSC)
from designating Korea Life as insolvent.  Choi, who is
serving a prison sentence for embezzlement, won his first
legal battle with the FSC last month as a court found fault
with the government agency's procedures.

The FSC rectified its mistakes and gave the life insurer a
week to come up with a self-rescue plan before taking steps
to nationalize it by injecting public funds.  It declared
Korea Life non-viable after finding the insurer's self-
restructuring plan infeasible and ordered a complete
capital decrease Tuesday in a run-up to an injection of
funds.

The Seoul Administrative Court will decide Wednesday
whether the FSC's order for a capital decrease was
justified.  Korea Life's employees immediately issued a
statement condemning Choi's "selfish tenacity" and demanded
that he withdraw his lawsuit.

"We are appalled by the series of actions taken by Choi and
his aides with the company's future at stake," they said.
(Korea Herald  18-Sep-1999)

SEOUL BANK: Capital infusion to take place
------------------------------------------
The government will inject 4.5 trillion won into Seoul Bank
today to make it a financially clean and healthy bank.
The Korea Asset Management Corp. (KAMCO) said yesterday it
will purchase non-performing loans (NPLs), worth 4.6
trillion won at face value, for 1.15 trillion won from
Seoul Bank today.

The purchase price was 50 billion more than the originally
estimated price. KAMCO will buy bad loans with collateral
for 49.26 percent of their face value and loans without
collateral for 3 percent of their outstanding values.
The transaction will clear Seoul Bank of all NPLs rated as
"substandard" or below, turning it into a financially clean
bank.

Meanwhile, the Korea Deposit Insurance Corp. will inject
3.2 trillion won into the bank to raise its capital
adequacy ratio above 10 percent. The government decided to
inject fresh public funds of over 4 trillion won this month
after merger talks with HongKong Shanghai Banking Corp.
collapsed.  (Korea Herald  18-Sep-1999)


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

TAIPING CONSOLIDATED: Year-end completion for restructuring
-----------------------------------------------------------
Taiping Consolidated Bhd's restructuring exercise is
expected to be completed by the last quarter of this year,
which will see the company being relisted on the Kuala
Lumpur Stock Exchange and changes in its boardroom.

The restructuring exercise is in the final stage and was
approved by shareholders in an extraordinary general
meeting here Thursday, said chairman and chief executive
officer Suleiman Abdul Manan.  However, the company will
still seek an extension to the restraining order against
its creditors granted by the High Court which will expire
on September 17, he said, adding that this is to ensure
there is time to regulate everything.

The court granted the restraining order on July 30, 1998.
Since then, it had been given extensions on January 27,
1999 to March 1, and then to March 17, when it was extended
to September 17.

"I suppose protection at this juncture is academic but it
is good to ask for an extension of at least three more
months," he said.

With the restructuring, Taiping Consolidated's core
business will be the Sentul Raya project while the
company's new major shareholder will be YTL Corporation, he
told reporters after the EGM.  YTL Corporation is expected
to subscribe to a proposed restrictive issue of 100 million
new Taiping shares at RM1 each.

Suleiman, who will become a minority shareholder after the
restructuring, said he is likely to stay on the company's
board although it is unclear whether he will stay as
chairman.  The changes in the boardroom of Taiping are
expected to take place in November after its annual general
meeting at end October, he said.

On the Sentul Raya project, which is a crucial part of the
restructuring, Suleiman said it will be revived once the
exercise is in place.  One of the conditions for YTL
Corporation's entry into Taiping, he said, is the
finalisation of the agreement with Keretapi Tanah Melayu
Bhd on some amendments to the Project Agreements on the
project to prepare for its revival. This is expected to be
settled soon.

"Once Taiping is relisted, Sentul Raya will be its
immediate core business.  After that, it will depend on the
planning of the new partner (YTL Corporation)," he said,
adding that at the moment there are few activities by
Taiping.

He said funding for Sentul Raya will be financed by the
capital injection from YTL Corporation and a new line of
loans to revive projects.  Of the 118 hectares, Sentul Raya
Sdn Bhd has a net 74 hectares for development and this will
generate sales worth more than RM2.5 billion over a period
of 12 years.  Suleiman said there are no changes to the
original plans, which had been approved, and it is now a
matter of reviving the project and giving priority to the
development area.

Before the project suspension, Sentul Raya Sdn Bhd had
launched 68 units of shop offices, 380 units of high-cost
apartments and 774 units of medium-cost apartments. It had
also completed a nine-hole golf course.  (Asia Pulse  16-
Sep-1999)


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

PHILIPPINE AIRLINES: PNB consents to rehab plan finally
-------------------------------------------------------
Following the recent change of heart of major Philippine
Airlines, Inc. (PAL) creditor US Export-Import Bank (US
Eximbank), Philippine National Bank (PNB) finally gave its
full consent to the implementation of the airline's
rehabilitation plan after months of continued opposition.

In a recent filing with the Securities and Exchange
Commission (SEC), the local creditor said that "after due
review and assessment of the said plan, it is their (PNB's)
belief that the full implementation be to the best interest
of the creditors."

Earlier, PNB asked the commission to junk its May 17 order
approving the flag carrier's corporate recovery plan. PNB
urged the corporate watchdog to reconsider its approval of
the said plan because it allegedly failed to prove that the
same was accepted by majority of the airline's creditors.
The bank contended that a suspension of payment should
merely defer the settlement of liabilities and not reduce
nor cancel the debts, a "forced consequence of insolvency
proceedings."

It added the plan gives unequal treatment to foreign and
local creditors. "Foreign secured creditors are given far
better treatment in relation to other creditors insofar as
proceedings with respective claims are concerned," PNB
claimed earlier.

PNB -- with claims amounting to over $60 million -- was
among the airliner's creditors that had been meeting with
the flag carrier's finance team for the documentation of
their restructured loan agreement, and so the bank's
earlier rejection came as a surprise to PAL officials.

Meanwhile, US Eximbank recently informed SEC chairman
Perfecto R. Yasay, Jr. of its plan to withdraw its
opposition to the rehabilitation plan of PAL.  In a letter
to the SEC, the US Eximbank also said it is ready to
withdraw the pending case earlier filed before the San
Francisco bankruptcy court against the debt-laden flag
carrier.

Like PNB, the US creditor -- with claims accounting for
two-thirds of PAL's $2.24-million debt which paid for four
Boeing 747-400 jumbo jets -- had earlier been very
persistent in its mission to have the SEC reconsider and
reject its earlier approval of the plan.  (Business World  
17-Sep-1999)


=================
S I N G A P O R E
=================

WASSALL ASIA PACIFIC: Posts first-half loss
-------------------------------------------
Wassall Asia Pacific slashed its net loss to $635,000 for
the half year ended June 30 from $1.8 million even though
turnover was flat at $12.4 million.  It said it was
unlikely to be profitable for the full year.  Loss per
share narrowed from 3.2 cents to 1.1 cents.  No dividend
was declared.  (Straits Times  17-Sep-1999)


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

KRUNG THAI BANK: BOT transferring shares to Gov't
-------------------------------------------------
The Bank of Thailand will transfer its shareholding in
Krung Thai Bank to the Finance Ministry as part of a plan
to rehabilitate the state-owned bank's massive bad loans.

Kitti Patpong-pibul, central bank deputy governor, said the
share transfer by the Financial Institutions Development
Fund would give the ministry full authority in managing
Krung Thai.  The Fund will hold 100% of a new asset
management company set up to handle all the bad loans that
originated from First Bangkok City Bank, which Krung Thai
took over last August. The total is estimated at more than
200 billion baht.

Mr Kitti said the management company would also take over
some bad loans belonging to Krung Thai.  The share
transfer, if approved by the cabinet, would help compensate
the Fund for the costs of setting up the management firm
and purchasing the assets from Krung Thai.  Rehabilitating
non-performing loans will be the biggest task faced by the
new directors of Krung Thai to be appointed at a
shareholders' meeting today.

Supachai Pisitvanich, finance permanent secretary, said
Sivavongse Changkasiri, former industry permanent
secretary, would be proposed as the new chairman. At the
end of June, Krung Thai had 404.16 billion baht in doubtful
and bad loans requiring full provisioning under Bank of
Thailand regulations.  Krung Thai Bank faces a total
provisioning burden of 422 billion baht. The government has
agreed to provide 171.45 billion baht to cover provisioning
for loans transferred from First Bangkok City Bank and
Bangkok Bank of Commerce last year.

Of the remaining 250.5 billion baht, Krung Thai has set
aside 119.58 billion, or 47% of the total required by the
end of 2000.  Setting up an asset management firm is
expected to minimise overall costs for the central bank and
the Finance Ministry. Unless bad assets are split from
Krung Thai, the state could have to inject up to 103
billion baht in new funds to offset bad loans.

A new capital increase would be politically sensitive,
given that the government has already pumped 185 billion
baht into Krung Thai over the past year.  Chakthip
Nithibhon, assistant central bank governor, said local and
foreign experts would be approached to oversee the
management firm. Krung Thai executives might also be
recruited.

The central bank and the ministry must also finalise how to
price loan assets sold from Krung Thai to the management
firm, as well as how to book profits or losses at the bank.
Besides Mr Sivavongse, other new directors expected to be
appointed today include Supat Tansatsitikorn, an auditor
from PricewaterhouseCoopers; Machima Kunjara na Ayudhya,
executive director of Electricity Generating Plc; and
Suparat Khawatkul, director of the Fiscal Policy Office.
Singh Tangtatsawas, the bank president and acting chairman,
is expected to remain a director and president.

The government last month sacked the former board, chaired
by Mechai Viravaidya, after the leak of an auditors' report
alleging widespread weaknesses in credit procedures.
Penwan Thongdeetae is also expected to be appointed to the
board, but only after an investigative committee submits
its final report next month.  The committee, headed by
Kamchorn Sathirakul, former central bank governor, and
including Mr Penwan, was formed to investigate the
allegations made in the auditors' report.  (Bangkok Post,
Business Day  17-Sep-1999)

NATIONAL FERTILISER: To look for debt-to-equity partner
-------------------------------------------------------
National Fertiliser Plc (NFC) will soon increse its  
registered capital to 14.94 billion baht from 4.74 billion.
As the increase would involve converting some of the
company's debts into shares held by creditors, NFC would
not need a new partner to help finance its operations,
according to Nopparat Artkongharn, finance and accounting
manager.

NFC also plans to double its production next year after
overcoming cashflow problems.  The partially state-owned
company will raise its chemical fertiliser output to
800,000 tonnes to meet an expected lift in demand.

NFC faced a critical cash squeeze last year that forced it
run at 40% of capacity, producing 400,000 tonnes for a
second consecutive year.  The company was unable to make
full use of its its new plant, built in Rayong for 10.8
billion baht and put into operation last year.

NFC had converted foreign loans into baht, totalling 11.6
billion baht, based on an exchange rate of 36.8 to the
dollar, Mr Nopparat said.  Debt restructuring, including
the conversion to equity, had halved the annual interest
burden from one billion baht.  As a result, NFC's products
could compete in price with imported fertiliser, he said.

NFC plans an intensive marketing campaign next year to
compete with more imported products.  NFC will make 28-28-0
formula fertiliser, which is of higher quality than the 16-
20-0 fertiliser now popular locally.  (Bangkok Post  17-
Sep-1999)

RADANASIN BANK: UOB the bidding winner, formally Wed.
-----------------------------------------------------
The Bank of Thailand expects the winner of the bid for
Radanasin Bank to be announced on Wednesday after a long
delay, according to Kiatchai Sophasathienphong, director of
the Bank of Thailand's Financial Institutions Development
Policy Department.

Details of the 75% sale of Radanasin are being reviewed by
the Attorney-General's Office, with final changes to the
contract sent to the central bank on Monday or Tuesday.
After the Attorney-General's Office sends back the purchase
agreement to the central bank, the committee for choosing
the winner will make a final decision, he said.
However, he refuses to disclose the name. Reports say that
United Overseas Bank (UOB) of Singapore won the deal over
rival Citibank.

Radanasin Bank is the second nationalised bank which has
been sold after Nakornthon Bank which was taken over by
Standard Chartered Bank of the UK for Bt12 billion.
Kiatchai said submission of the proposed prices and
conditions concerning the sale of another two nationalised
banks -- Bangkok Metropolitan Bank (BMB) and Siam City Bank
(SCIB) -- will be closed on Oct 8 and the committee would
take about two to three weeks to decide.

Earlier, Central Bank governor MR Chatu Mongol Sonakul said
the price for Radanasin Bank would be slightly higher than
its performing assets.  The bank at this time carries good
assets not exceeding Bt7 billion of its outstanding credit.
Radanasin Bank for the first six months of 1999 recorded a
net loss of Bt1.156 billion, significantly improved from
the Bt14.88 billion net loss over the same period last
year.  (The Nation, Bangkok Post  18-Sep-1999)

TELECOM HOLDING CO.: Sells stock to help debt-ridden parent
-----------------------------------------------------------
Telecom Holding Co Ltd (TH), a subsidiary of indebted
fixed-line operator TelecomAsia Corporation Plc (TA), has
sold its remaining 15 per cent stake in Kopin Corporation
Co in a bid to ease TA's financial difficulties.

TA announced yesterday that its subsidiary had sold its
final stake in Kopin, equal to 1,643,716 shares, on the
secondary market.  Kopin is a US-based manufacturer and
distributor of telecom equipment.

A share price of US$20.60 per unit was offered, amounting
to $39 million, well above the acquired share price of
US$16.50 per share.  TH took over Kopin in 1995 but later
sold a one-million-share portion of the US company last
year at Bt791 million. TH gained Bt428 million in profit
from the transaction.

A TA executive said the company would have to sell its
shares in overseas ventures to spin off its non-core
businesses and focus on investing in the Internet business.
Meanwhile, Kopin reported that it expected to suffer losses
between $9.4 million and $9.7 million in the third quarter
this year, up from the $7.8 million it suffered over the
same period last year.

Earlier TH also sold out its 20 per cent stake, worth Bt567
million, in optical fibre operator ComLink Co.  The shares
were offered to the existing shareholders of ComLink,
including the Lamsam family, the Bhirombhakdi family and MR
Pridiyathorn Devakula who is the president of Export-Import
Bank of Thailand.

The share divestment of TH in the two companies also
represents its parent company's continual attempt to retire
its debt burden of Bt63 billion. Last year, TA sold its
stake in Hong Kong-owned APT Satellite, worth Bt3 billion.
TA is currently negotiating a debt-restructuring plan with
its creditors under the supervision of Corporate Debt
Restructuring Authority Committee (CDRAC).

The company has recently expressed confidence that the
process would be completed by October.  (The Nation  18-
Sep-1999)

THAI AUTOMOTOVIVE CO.: Creditors to file bankruptcy suits
---------------------------------------------------------
Creditors of Thai Automotive Co will file bankruptcy suits
against the company as well as clearing debts to compensate
laid-off employees.

The exact amount owed the former employees is being
determined by the official receivers, who seized 460
million baht in cash from the company. Further asset
seizures are said to be imminent. The receivers continue to
impound a remaining 800 vehicles for eventual sale to
recover the debt.

Thai Automotive, formerly Thai Chrysler Automotive, owes
129 creditors a total of 5.452 billion baht.  The major
creditors include the Customs, Revenue and Excise
departments (582.75 million baht), Chrysler Sales & Service
(Thailand) Co and Chrysler International Corp (428 million
baht), Nakornthon Bank (305 million baht), America National
Trust and Savings Association (285 million baht) and
Swedish Motors Plc (56 million baht).  (Bangkok Post  18-
Sep-1999)

THAI FARMERS BANK: Phatra Thanakit deal signing next week
---------------------------------------------------------
Kiatchai Sophasathienphong, director of the Bank of
Thailand's Financial Institutions Development Policy
Department said the signing contract between the authority
and Thai Farmers Bank over the handling of Phatra Thanakit
Plc will be held next week after both parties agree in
principle.  Phatra Thanakit's future is uncertain now that
Thai Farmers Bank which holds 95 per cent in the ailing
finance firm wants to abandon it.

According to an earlier report, the performing assets of
Phatra Thanakit would be transferred to its parent bank
while distressed assets accounted around 80 per cent of the
total loans under the management of its own asset
management company.  (The Nation  18-Sep-1999)

THAI PETROCHEMICAL INDUS.: Aiming for year-end restructure
----------------------------------------------------------
Chase Manhattan Bank expects that Thai Petrochemical
Industry Plc (TPI)'s debt restructuring will be completed
this year, due to an improvement in the Thai economic
situation.  Chase Manhattan has been TPI's financial
adviser since August 1997, when it was tasked to
restructure US$3.4 billion of problem loans with at least
140 creditors.

"For Thailand to move on with its economy, the large non-
performing assets must first be cleaned up. We believe
TPI's restructuring will be completed within three months,"
said Robert Fallon, managing director of the bank's Asia-
Pacific Division, at a press briefing on the bank's
activities in Thailand this year.

He noted that the improvement in the Thai economy had
largely supported the restructuring of TPI and it also
should lead to the success in debt-restructuring deals of
five or six large Thai corporations in the near future.
The bank also assists Thai Oil Co Ltd's debt restructuring.

"However, the debt restructuring of ThaiOil should take
about six more months before everything can be put into
place," Fallon said, attributing the delay to a large
number of Japanese bank creditors.  "It is fair enough to
say that Japanese banks are not willing to take a hair-cut
because large-sized banks are currently facing problems in
Japan too," he added, explaining that if the banks with
huge non-performing assets need to write off losses, their
equities will be further adversely affected.

He added it would take about two years before Thai
corporations could get their restructuring through. It is
likely that non-performing loans (NPLs) in Thai banks will
go down to below 30 per cent within a year, he added.
Fallon commented that the existing average level of NPLs in
Thai banks was too high compared to around 4.5 per cent
among healthy banks. However, there has been a tremendous
improvement, particularly with several big successful
recapitalisations in large Thai banks.

"If you never have bad loans, it shows that your bank is
not efficient enough. A lack of bad loans means you are not
doing any business. Banking business involves credit," he
said.

Raymond Chang, managing director and senior country officer
of Chase Manhattan in Thailand, said it was possible that
Thailand could achieve the economic growth of 3 to 4 per
cent as targeted for 1999, and 4 to 5 per cent in 2000.
Reflecting its confidence in the Thai market is Chase
Manhattan's $750-million private-equity Asia Opportunity
Fund, which is currently looking at investment
opportunities in the Thai market, particularly in the areas
of health care, media, telecommunications and financial
services.

"We see Thailand as a priority market. Chase's key focus
for 1999-2000 is building on its financial restructuring
advisory business and M&As (mergers and acquisitions). We
are already working with ThaiOil and TPI in restructuring
their debt to a sustainable basis," Chang said.

In June 1998, Chase Manhattan was the financial adviser for
Thai companies on the restructuring of around $2 billion of
debt, and was the adviser on ThaiOil's strategic equity-
raising plan. The bank is also the financial adviser of
Thai Lube Base Oil Co Ltd for the restructuring of
approximately $195 million of loans, and it also advises
Thai Telephone and Telecommunications Plc on debt
restructuring of approximately Bt44.3 billion.  (The Nation  
17-Sep-1999)

WATTACHAK GROUP: Revenue dept. forecloses on assets
---------------------------------------------------
The Revenue Department is foreclosing the heavily indebted
Wattachak Group Plc's assets, covering trademarks for its
mast heads after the company failed to pay a Bt179.07
million corporate tax bill, according to a source at the
department.

The source said that even though the department has
implemented the foreclosure measure, Wattachak can still
operate the assets until the auction process is completed.
According to the law, the auction process for the
foreclosed assets will begin one month after the
announcement. The foreclosure announcement was made on Sept
14.

The assets, valued at Bt56 million, include the group's
trademarks, which are the mast heads of Wattachak
Classified, Wattachak Newspaper Daily, Wattachak Auto,
Wattachak Property and Wattachak Land.  Recently, staff of
Wattachak Newspaper Daily left to set up a new publication,
the Wattasarn Newspaper Daily. The Post reports the
trademarks as including the Wattachak daily, Arch & Idea
monthly, Jobs weekly, Wattachak weekly, Cars weekly and
Building and Land weekly.

Wattachak's debts have now broken through the Bt10 billion
barrier, far above its current income-generating ability.
Since the baht devaluation of July 2, 1997, Wattachak
suffered immeasurably after enjoying a decade of excessive
expansion and borrowings prior to the country's economic
crisis.

At the last count, Wattachak -- which during its heyday was
involved in cable television, radio broadcasting, newspaper
and magazine publishing -- owed more than Bt10 billion to
foreign and Thai creditors.  Nikorn Pornsatit, the group's
founder, established Wattachak as a publisher of popular
recruitment, auto and real estate classified magazines. In
1991, it branched into newspapers and was later listed on
the stock exchange.

At one time, Wattachak was traded at more than Bt400 per
share, creating a record market capitalisation of Bt9.2
billion.  Shortly afterwards, the group expanded
aggressively into television and radio media by taking over
Keeree Kanjanapas' cable TV venture and joined forces with
Media Plus in the radio broadcasting sector. At its peak,
the group employed about 1,900 people.

Over the past 18 months, Wattachak has faced lawsuits from
business partners and employees. Some labour suits have
reached their final stages, with the court allowing
plaintiffs the right to foreclose company properties for
the payment of debts.  Wattachak owes around Bt30 million
in compensation to laid-off employees and another Bt20
million to current staff.  (The Nation, Bangkok Post  18-
Sep-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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