TCRAP_Public/990922.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

           Wednesday, September 22, 1999, Vol. 2, No. 184

                            Headlines


* C H I N A  &  H O N G  K O N G *

CCT TELECOM HOLDINGS: Posts lower first-half loss
CHUN TAI HOLDINGS: Posts annual loss
FOUNDER: Posts first-half loss
GUANGNAN HONG: Divested of 27 million yuan in receivables


* I N D O N E S I A *

PT CITRA MARGA NUSAPHALA PERSADA: Debt to be transferred
PT ENSEVAL PUTRA MEGATRADING: Seeking debt restructure


* J A P A N *

CRESVALE INT'L.: Operations being forced to close down
SOFTBANK: To post first-half loss


* K O R E A *

KOREA FIRST BANK: To get new management - local and foreign
KOREA LIFE: Court rejects injunction request
SEOUL BANK: Shares to be sold overseas in pieces


* M A L A Y S I A *

IJM CORP.: To issue more bonds to reduce debts
NATIONAL KAP: Posts lower first-half loss
TIME ENGINEERING: Three companies offer bids for
WING TAI HOLDINGS: Annual loss projected


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

MARIWASA MANUFACTURING: Undergoing restructuring


* T H A I L A N D *

RENOWN LEATHERWEARS: Creditor majority okays rehab plan
SAWAS HORUNGRUENG: Debt rehab deal expected in October
THAI FARMERS BANK: Phatra Finance deal clarified


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

CCT TELECOM HOLDINGS: Posts lower first-half loss
-------------------------------------------------
CCT Telecom Holdings announced reduced net losses to $8.4M
for the six months to June 30, a significant improvement
from $70.3M in the previous period.  Total turnover rose a
spectacular 246% to $680M during the period.  

The improvement was mainly due to a significant drop in
exceptional losses.  During the six months period an
exceptional loss of $2.4M was recorded from provision for
corporate restructuring and consolidation costs much less
than the $81M loss recorded a year ago.

CCT chairman Clement Mak said the group's focus on the
telecom and information technology businesses began more
than two years ago. Now, he said, the transformation of the
group from a manufacturer of telecom products into a
telecom and information technology products and services
provider is completed.

He noted that excluding the loss attributable to investment
firm Celestial Asia Securities Holdings, which was sold in
July 1999, the group would have reported net profits of
$10.3 million.  For the period under review, CCT's Internet
business operating under HKNet continued to expand the
subscriber base for both individual and corporate accounts.
HKNet remained the second largest Internet Service Provider
in Hong Kong.

Mr Mak said the performance of the group's mobile phone
business in China, led by Shanghai Unicom exceeded
expectations.  Subscribers grew from 150,000 at the end of
1998 to 215,000 in June 1999, an increase of 43 per cent
during the period.  (Hong Kong Standard  21-Sep-1999)

CHUN TAI HOLDINGS: Posts annual loss
------------------------------------
Toy and consumer electronics maker Chun Tai Holdings
yesterday reported net losses amounting to $308.17M for the
year ended March 31 sharply reversing profits of $50.09M in
1998.  During the review period, the company recorded an
exceptional loss of $220.64M, incurred from development
cost and pre-operating expenses written off, as well as
provision for slow moving and obsolete stocks and for
doubtful debts, Chun Tai executive director Wong Kui Chuen
said in a statement.

FOUNDER: Posts first-half loss
------------------------------
Computer software company Founder (Hong Kong) lost $105.87M
in the six months to June 30, citing internal restructuring
and higher deprecation charges from a revised accounting
policy.  A year earlier, the red chip earned $17.05M.  

Loss per share was 13.2 cents, compared with earnings per
share of 2.1 cents the previous year.  As a result of
corporate restructuring, turnover fell 17.69% to $802.54M.

Severe competition due to price cutting in the mainland's
computer hardware industry also hit bottom lines, the firm
said.  Higher depreciation charges due to a revision of
estimated lives of equipment from five years to three years
also contributing to the change of fortune.

During the period, no product with breakthrough technology
was introduced, and overall performance recorded a decline.
Financial controller Kent Chan Yiu-kwong said a cut in
staff and corporate streamlining would be fully reflected
in the second half.  (South China Morning Post  21-Sep-
1999)

GUANGNAN HONG: Divested of 27 million yuan in receivables
---------------------------------------------------------
Diversified Fortuna International has recovered 27 million
yuan (about HK$25.11 million) in receivables from troubled
Guangnan Hong (Group), the holding company of insolvent
red-chip Guangnan Holdings.

The sum was paid by an independent third party unrelated to
Guangnan Hong, company spokesman Shirley Hui Wai-man said.
She did not reveal the name of the third party, disclosing
only that it was not a locally listed company.  The
remaining HK$9.97 million owed by Guangnan Hong will be
written off, Ms Hui said.

The disposal of electronics arm Firstone Investments to
Guangnan Hong left Fortuna with HK$35.2 million in unpaid
receivables when Guangnan Hong failed to pay the balance.
Guangnan Holdings had its 20 per cent stake in Fortuna
diluted to 12 per cent after a share placement in June that
raised HK$14.2 million and a rights issue in May that
raised HK$39.5 million.

Vice-chairman and managing director David Chan Chuen-wing
said Fortuna would focus on its ostrich-farming business
this year, and it was aiming to increase its exposure in
the business to account for half of its turnover next year.
Fortuna supplies up to 40 per cent of the world's ostriches
needs.

Most of its HK$72 million cash in hand has been earmarked
for expanding its ostrich farming and tanning facilities in
South Africa.  Mr Chan said the gross profit margin for the
business had risen as it had halved the amount of ostriches
bought externally to 30 per cent, and was breeding 70 per
cent of its ostrich needs.

He said the retail price of ostriches had risen to US$200
per bird from US$150 last year, while its cost per ostrich
had fallen to US$100, compared with the wholesale price of
US$130.

"We're now aiming to reduce our cost per ostrich to US$80,"
Mr Chan said.

The company's average monthly output of ostrich hides is at
6,000, more than double its average output of 2,500 in the
first half of the year, he said.  Fortuna's ostrich
business accounted for 26 per cent of turnover in the first
half of the year while its wine business accounted for 74
per cent.  (South China Morning Post  21-Sep-1999)


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

PT CITRA MARGA NUSAPHALA PERSADA: Debt to be transferred
--------------------------------------------------------
An agreement to legally transfer a US$ 70 million debt of
tollroad operator PT Citra Marga Nusaphala Persada
(JSX:CMNP) to PT Citra Lamtorogung Persada (CLP) would be
signed before an extraordinary shareholder meeting of CMNP
on Sept. 28.

The agreement was originally to be signed on Sept. 13 , but
the signing was delayed because of "technical problem",
said Teddy Khasardy, an executive of CMNP, a toll road
building company partly owned by CLP.  CLP, a holding
company of the Lamptorogung Group owned by Siti Hardiyanti
Rukmana, a daughter of former President Suharto, has
acknowledged that it was responsible for the repayment of
the debt to creditor the Brunei Investment Agency (BIA).

BIA demanded the repayment of the debt to CMNP, which
refused to acknowledge having debt to BIA.  Teddy said BIA
had been aware that it had directed its demand to a wrong
address the fund was given to CLP although originally the
proposal for the debt came from CMNP.

BIA already cancelled its letter demanding the repayment to
CMNP.  Trading of CMNP share was suspended by the Jakarta
Stock Exchange because of the problem over the debt, but
after the legal transfer of the debt trading of CMNP is
expected to be resumed.

Teddy said CMNP is expected to have better performance this
year following its success in restructuring its debt of US$
175 million in floating rates notes (FRN). Its creditors
agreed to a rollover of US$ 40 million of the debt. The
rest had been repaid.  The company also has US$ 125 million
in Eurobond and Rp300 billion (US$ 3.75 milion) in bond II
with maturity dates in 2002 and 2004 respectively.  (Asia
Pulse  20-Sep-1999)

PT ENSEVAL PUTRA MEGATRADING: Seeking debt restructure
------------------------------------------------------
PT Enseval Putra Megatrading (JSX:EPMT) is seeking to
reschedule its debts of US$ 56 million and hopes to sign a
restructuring agreement with its creditors in November, its
management said.

Most of the debts to a syndicate arranged by Commonwealth
Bank of Australia would fall due in 2000. The company, a
retailing company primarily distributing pharmaceutical
products from principals, plans to hold a meeting later
this month with its creditors.

A steering committee had agreed to a 5 years rescheduling
proposed by EPMT in a meeting on August 30, and the company
was required to pay US$ 9 million in advance, it said. The
interest rate on the debts would be 3 percentage points
above Singapore Interbank Offered Rate (SIBOR) in the first
through the third years and 3.5 percentage points above
SIBOR in the fourth and fifth years.

The company posted a net profit of Rp89 billion (US$ 11.1
million) in the first half of this year with a net sales of
Rp600.8 billion, which rose from Rp415.4 billion in the
same period last year. The company has set a target of
Rp1 trillion for net sales in the whole of 1999.  (Asia
Pulse  20-Sep-1999)


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

CRESVALE INT'L.: Operations being forced to close down      
------------------------------------------------------    
Cresvale International yesterday said all 50 staff in Japan
would be laid off this month after business dried up, and
it would be forced to close down its securities operations.

"It is virtually impossible for us to continue our
operations as a securities business," said a spokesman in
Tokyo.

Hong Kong staff of stockbroker and derivatives trader
Cresvale face dismissal after the company announced it
would sack its Tokyo employees in the wake of an $8.19
billion bond scandal. Cresvale Hong Kong director Graham
Brown said the company had no plans for its SAR operations
at present. He declined to comment on the brokerage's
recent business performance.  However, one employee said
redundancies among the 40 staff were a real possibility.

"There is concern among the staff, but we really don't know
what's happening here," he said.

Last Wednesday, Cresvale Hong Kong voluntarily suspended
trading operations after the chairman of its US parent,
Martin Armstrong, was arrested in New York for alleged
fraud.  The Securities and Futures Commission contacted
local senior management of Cresvale Group to monitor its
financial position, clients' stock-holding and outstanding
settlement obligations.

Cresvale Group was bought in 1995 by Princeton Economics
International, a global investment and economic research
company. Cresvale sold "Princeton notes" - bonds issued by
Princeton Economics through a paper company set up in the
Cayman Islands. By July, 76 Japanese firms had invested a
combined 113.8 billion yen (about HK$8.24 billion) in the
bonds.  But the real value of the investment was now just
five billion yen, Cresvale's chairman Akira Setogawa said.  
Mr Setogawa said Cresvale had bought Princeton notes worth
US$3 million.

"We too are also the victims. Our reputation has been
severely damaged and it is questionable that we can operate
a securities business in Japan," he said.

Japan's Financial Supervisory Agency this month suspended
Cresvale from selling bonds issued by its US parent for six
months, citing "grave concerns over protection of
investors' assets".

Cresvale stopped selling the bonds in May.  Mr Armstrong,
the founder and chairman of Princeton Economics, was
charged in New York with fraudulently selling Princeton
notes.

"I have no idea what happened in the United States," Mr
Setogawa said.

He said he was in talks with lawyers about suing several
people from Princeton Economics and Republic New York
Securities Corp on suspicion of fraud and embezzlement.  
Money from the sales of Princeton Notes was held in
accounts at Republic New York Securities Corp, a subsidiary
of the Republic Bank of New York, and the notes' buyers
were supposed to receive regular reports updating their
account status.

The trading loss Armstrong had accumulated since August
last year had got "bigger and bigger", Mr Setogawa said.  
He said the collapse of the Long Term Capital Management
hedge fund and economic crises both in Russia and in Latin
America last year "may have contributed to his trading
loss".

But the scandal had hit "like a bolt out of the blue", Mr
Setogawa said, vowing that Cresvale would do its best to
recover the money for its investors.  Earlier on Monday, he
met with 81 people from 37 companies that had bought
Princeton bonds to apologise for the investment loss and
discuss ways to recover their money.   (South China Morning
Post  21-Sep-1999)

SOFTBANK: To post first-half loss
---------------------------------
Japan's Softbank has revealed it is facing an 8B yen group
net loss in the six months to Sept. 30.  The Internet
investor and software publisher recorded a 3.3B yen group
net profit in the first half last year but losses are
expected this year because of extra interest payments on
loans made to its US subsidiary Ziff-Davis when it listed
on the New York Stock Exchange in April last year.  
Softbank said it would take a pretax loss of 15B yen in the
first half, against a 2.4B yen loss last year.


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

KOREA FIRST BANK: To get new management - local and foreign
-----------------------------------------------------------
Korea First Bank (KFB), the nation's leading commercial
bank with over 70 years of the operating history will be
run by a new management comprised of foreigners and
Koreans.

Weijian Shan, a chief negotiator of Newbridge Capital of
the United States, told The Korea Times yesterday that the
KFB's management will shortly be taken over by a new team
of foreign and Korean banking experts.

"The new management is going to be comprised of foreign
banking experts and senior Korean members of the bank,"
Shan said during an exclusive interview at his room in
Grand Hyatt Seoul.  `We have a summary of the plan for the
future KFB operation which includes the details of the new
management," said Shan, who has been a key player in the
nine-month negotiation with the Financial Supervisory
Commission for the takeover of the KFB.

Following a completion of the contract between Newbridge
and FSC, there has been a lot of speculation on how the KFB
will be managed.  Some believed that the present
management, including the bank head, would continue to run
the bank while others said that there would be a whole new
crew taking over the bank immediately after the deal
closed.

But, the top Newbridge representative in Seoul put an end
to all the rumors, saying that the management team will be
comprised of half foreign and half Korean banking
officials.   On the subject of KFB employees and the number
of branches, Shan said that Newbridge has not changed its
stance since the last press conference.  On April 27, in an
effort to control rumor mills, the senior Newbridge
official said there would be no further layoffs nor branch
closures.

"Newbridge's position on the number of manpower and
branches remains the same," Shan said.  "One thing I can
say is that Newbridge will not take any drastic measure
with such key issues without discussion with the KFB
people," he added.

Shan said during the press conference at the KFB
headquarters in downtown Seoul that Newbridge believes that
the number of branches is just about right and there is no
need for additional layoffs.  The KFB currently operates
339 branches across the nation, four overseas offices, and
two international joint venture firms.  It has 4,829
employees, down from over 8,000 before the financial
crisis. with a total of 4.5 trillion won in paid-in
capital.

As for how long Newbridge plans to possess KFB shares, Shan
said firmly that the U.S. investor will keep the assets
much longer than what the general public expects.

"We will keep the KFB shares until we maximize its
potential value. Newbridge is a long-term private equity
investor."

The local financial community believes that the U.S.
investor will sell the KFB assets within 4-5 years.
But according to the Newbridge official, the term will be
much longer.  As for the name of the bank after the closure
of the deal, Shan said that Newbridge hopes to keep the
present one.

"We like the name, Korea First Bank. We want to keep the
name of the bank which will be Korea's first bank again
soon," he said.

Turning to the dramatic last minute completion of the nine-
month talk for the first ever foreign takeover of domestic
bank, Shan revealed the key element, saying that the
government's provision of loan loss reserves led to the
final contract.  In the last minute, the two sides agreed
to mark the KFB loans in nominal value instead of market
value while the FSC sets up additional loan loss provisions
if necessary.

This, in turn, will prevent the KFB loans from receiving a
low mark in view of recent economic recovery while the U.S.
side gets an additional assurance from the government's
provisional reserves for precautionary loans going forward.

"We agreed that the new proposal will benefit the KFB
making it Korea's top bank again," Shan said.

Newbridge's takeover of a 51 percent stake in the KFB was
complete last Friday with the government and U.S. investor
signing the final contract in the 500 billion won ($416
million) deal.  The U.S. investor agreed to inject another
200 billion won in the next two years as bank earnings
improve.  The government in return promised to give a two-
year guarantee to cover KFB's non-performing loans (NPLs)
accruing during the cited period.

Newbridge won the right to take over the KFB in a
competition with other major banking concerns, including
the British HSBC, on New Year's Eve last year.  The U.S.
private equity investor was established by two leading
investment firms, the Texas Pacific Group and Richard C.
Blum & Associates.  Newbridge currently manages $10 billion
in commercial capital.  (Korea Times  21-Sep-1999)

KOREA LIFE: Court rejects injunction request
--------------------------------------------
The Seoul District Court has rejected the second request of
Korea Life chair Choi Soon-young to place an injunction
against an Financial Supervisory Commission (FSC) move to
declare his firm as a non-viable institution, which would
allow it to order the elimination of all outstanding
shares.

Such a declaration would effectively allow the FSC to
takeover the firm by injecting public funds to recapitalize
it, making way for the government to normalize operations
as it saw fit before selling it off to a foreign investor.
Choi had filed for an identical injunction August 13, with
the court ruling in his favor August 31 on grounds that the
FSC had failed to follow legal procedure.  (Digital
ChosunIlbo  21-Sep-1999)

SEOUL BANK: Shares to be sold overseas in pieces
------------------------------------------------
The government plans to sell shares of Seoul Bank overseas
in pieces after the bank is put back on the right track, a
high-ranking financial official said yesterday.

Lee Yong-kun, vice chairman of the Financial Supervisory
Commission, also reiterated that foreign creditors of the
ailing Daewoo Group will be treated the same as local
creditors.  Speaking at an international investors' forum
organized by Credit Lyonnais Securities Asia, Lee said that
the government's stake in Seoul Bank will be sold off in
parts after the bank restores normal operations, which is a
shift from the government's previous intention to sell the
bank in its entirety.

Lee also said that the government will resolve the Daewoo
crisis in a manner that is transparent, consistent with
market principles, fair and responsible and in accordance
with global standards.  Lee asserted that the Daewoo
problem shows the government's commitment to restructuring.

"It is obviously the most serious challenge facing the
Korean economy. But as ironic as it may sound, it is
evidence of the Korean government's commitment to reform."

He said the extent of Daewoo's financial woes underscores
the importance of effective chaebol reform, which should
pave the way for Korea to achieve sustainable and equitable
growth in the next century.  (Korea Herald  22-Sep-1999)


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

IJM CORP.: To issue more bonds to reduce debts
----------------------------------------------
IJM Corp Bhd, a leading local construction company, plans
to make additional bond issues to refinance more of the
debts it incurred in pursuit of its activities.

According to IJM group managing director Krishnan Tan Boon
Seng, the issuance of new bonds at a fixed interest rate
would remove the risk associated with fluctuating rates on
IJM's existing loans.  The group has just sold RM100mil of
bonds to refinance loans it took to build the works
ministry office blocks in Kuala Lumpur. The bonds were
purchased by HSBC Bank Malaysia Bhd and Citibank Bhd under
an agreement signed yesterday.

"The flexibility of the money market has allowed us to do
that," Tan said.

He said that the capital needs of the group's plantation
operations--roughly about RM150mil--would be the next to be
refinanced through bonds.

"Interest rate cost is a big element in any project," he
said. "By capping interest rates, a project can become less
risky."

The RM100mil bonds which IJM just issued to refinance loans
taken to build the works ministry office blocks carry a
coupon of 8%. They have been rated AA1 by Rating Agency
Malaysia Bhd (RAM) on a stand-alone basis.  The ministry
offices were completed on Feb 26, 1997, and under a build-
operate-transfer concession agreement with the government,
IJM receives monthly payments from the ministry.

IJM is now getting RM1.4mil a month under the 13-year
concession agreement but the amount could be revised upward
after every three years during the concession period.

"The RM100mil bond issue allows our company to match our
cashflow with our obligations," Tan said.

Payments from the ministry would be used as security for
the bonds.  Tan also said that after completing a water
privatisation project in Vietnam, the group was looking
forward to completing its six road construction jobs in
India worth RM500mil.  He said IJM was also starting to
look for more jobs locally.

"There are opportunities for us to bid for more projects
locally. Malaysia is a big resource base for us," he said.

Tan said the group was additionally thinking of floating
its plantations and infrastructure businesses but would
wait for the right time before proceeding with those plans.
(Star Online  21-Sep-1999)

NATIONAL KAP: Posts lower first-half loss
-----------------------------------------
Electronic-parts maker National Kap narrowed its interim
loss from $1.7 million last year to $173,000 for the half-
year ended June 30, led by a better performance by a U.S.
unit.

The company also booked an extraordinary loss of $327,000
in cessation expenses for various businesses, resulting in
a bottomline loss of $500,000. Although turnover fell 17
per cent to $4.8 million, its loss narrowed because of
improved performance at its US subsidiary and the cessation
of its capacitor business. Loss per share came to 0.46
cent, an improvement from 8.92 cents previously, while net
tangible assets a share came to 3.72 cents, down from 4.5
cents.  (Business Times, Straits Times  21-Sep-1999)

TIME ENGINEERING: Three companies offer bids for
------------------------------------------------
Maxis Communications Bhd, Kejora Harta Bhd and the
Singapore Technologies Group are believed to be the three
parties that have submitted bids for Time Engineering Bhd.
The bids were submitted to the Corporate Debt Restructuring
Committee (CDRC) at 11am yesterday.

It is believed that the three groups later made separate
presentations to officials of CDRC, Renong Bhd and the
creditors of Time Engineering in the afternoon.  Renong has
a 46.77% equity interest in the KLSE main board listed Time
Engineering. The latter is currently under court protection
from creditors under Section 176 of the Companies Act.

The successful bidder for Time Engineering will be notified
by the CDRC in two weeks. CDRC officials, however, declined
to comment on the bids.  Kejora executive deputy chairman
Datuk Samsudin Abu Hassan confirmed the company has
submitted a bid for the entire Time Engineering group.

"We have submitted a comprehensive plan to turn the Time
Engineering group around," Samsudin told Star Business
yesterday.

Samsudin said he was using Kejora as the vehicle for the
bid since the company was diversifying from property into
areas such as infrastructure, telecommunications, data
communications and information technology.  Maxis senior
officials, when contacted by Star Business, also declined
comment. However, CDRC chairman Datuk C. Rajandram had
earlier said that Maxis was interested in buying Time
Engineering's wholly-owned telecommunications unit, Time
Telekom Sdn Bhd.

Time Telekom has a comprehensive fibre-optic network around
the country. Time Engineering's other subsidiary, Time
Wireless Sdn Bhd, is engaged in cellular operations under
the Adam brand name, while its payphone business is managed
by Time Reach Sdn Bhd.  It is believed that Time Telekom's
cellular base stands at about 110,000 and it had about
163,000 payphones in the country at end-June 1999. But no
subscriber figures are available for its fixed line
network.

Analysts felt that Time Engineering could be broken up with
Maxis opting for the telecoms business, especially the
fibre-optic network, and Singapore Technologies going for
just the cellular and payphone business.

"And Kejora wants the whole of Time Engineering even though
it knows that Time Engineering obviously has problems," an
analyst said.

Analysts felt that the main issue would still be the
pricing and how the bidders proposed to pay off the hefty
RM4.5bil in debts Time Engineering has incurred.

"Time Telekom's assets are only useful if there are more
funds injected; otherwise it will be a white elephant," TA
Securities Sdn Bhd research head Francis Tan said.

He said Singapore Technologies, with its forte in the
paging business, might use Time Engineering payphone and
cellular businesses as a springboard to venture into the
Malaysian telecoms market.  This is not the first time a
Singapore firm has expressed interest in Time Engineering.
One-and-a-half years ago, Singapore Telecommunications
(SingTel) had offered to buy Time Telekom for RM1.2bil but
it was said that Renong wanted RM1.4bil and the deal
fizzled out.

Before Time Engineering landed itself at the CDRC, it was
also courted by Telstra of Australia, France Telecom and
Japan's NTT, but pricing is believed to have been the main
stumbling block to a deal being structured.  Many analysts
contacted were pleased that Telekom Malaysia Bhd is not
involved in the bid.

"We are glad Telekom does not have to take on more than it
can chew," they said.

Some analysts were surprised that British Telecom (BT) did
not make a direct bid, as the market had been abuzz with
talk that it was keen to take over Time Telekom with or
without Maxis. BT has a 33.3% equity interest in Maxis.

"Whichever bidder takes over Time Telekom will get a three-
year headstart with its fibre-optic network," said KAF
Seagroatt & Campbell Securities general manager (research)
Lucy Ng.  (Star Online  21-Sep-1999)

WING TAI HOLDINGS: Annual loss projected
----------------------------------------
Wing Tai Holdings, Singapore's 10th-largest real estate
company by market capitalization, may lose money for a
second year on provisions for low property values and slow
sales in the year ended June.  The garment-maker-turned-
developer is expected to post a loss of US$85 million,
according to analysts.

"They have little [in new] sales, and interest expenses
have eroded contributions from their remaining sales," said
Lim Jit Soon, research head at Salomon Smith Barney.

Still, a profit is in the cards for the next fiscal year,
analysts said. The company is expected to unveil its full-
year earnings today.  As its business year ends in June,
Wing Tai - like First Capital - will be among the few real
estate developers to post losses for the reporting period,
analysts said.

Those with financial years which end in December have swung
to profit in the first half ended June, as prices for homes
have recovered this year. Wing Tai may also bounce back in
its current financial year.

"Earnings will rebound in 2000, especially if they launch
one or two projects and no more provisions are required,"
said Stephanie Wong, an analyst at Kim Eng Securities.

Wing Tai some years back bought several land sites and
properties - including the Cairnhill Hotel - when real
estate prices were higher and the company was hesitant to
sell at current lower prices, analysts said.  Wing Tai
shares have risen 43 percent this year, less than the
Straits Times Index's 53 percent gain.

Wing Tai was not likely to make large provisions in the
second half, analysts said.  With home prices advancing
this year after the two-and-a-half-year slump, Wing Tai may
even benefit from writing back some of the provisions it
made in fiscal 2000.  Rivals such as DBS Land, the second-
largest listed developer and Keppel Land., have turned the
corner in their first half ended June as they gained from
the rebound in the property market and from the absence of
provisions.  Sales of newer projects are likely to boost
Wing Tai's earnings in fiscal 2000, analysts said.
(Bloomberg, Business Day  21-Sep-1999)


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

MARIWASA MANUFACTURING: Undergoing restructuring
------------------------------------------------
The Philippines' leading ceramic tile manufacturer,
Mariwasa Manufacturing Inc., is undergoing a financial and
operational restructuring requiring an estimated US$ 26
million in new long term funds.

Mariwasa has requested the International Finance
Corporation (IFC), the private investment arm of the World
Bank, to provide US$ 15 million in long term funding to
support the restructuring.  As part of its due diligence
procedures, IFC has recently conducted an environmental and
occupational health and safety review of the Company which
covered among others site selection, air emission, waste
water treatment, handling of solid wastes and hazardous
materials, fire prevention and general workers health and
safety.

IFC has concluded that this project will meet World Bank
Group environmental standards, health and safety policies
and guidelines, and host country requirements.  The company
has posted the Environmental Review Summary made by IFC in
the community billboard of Pasig City and Sto. Tomas,
Batangas and at the Internet Info Shop for the general
consumption of the public.  (Asia Pulse  20-Sep-1999)


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

RENOWN LEATHERWEARS: Creditor majority okays rehab plan
-------------------------------------------------------
A debt-ridden Renown Leatherwears Plc has gained majority
support from its creditors for a Bt3.96 billion debt
restructuring plan.

According to the company's statement submitted to the Stock
Exchange of Thailand, nine of 15 institutional creditors
who controlled 79.78 per cent of the company's outstanding
credit have already accepted the plan.  Under the plan,
Bt1.75 billion is retained as a long-term loan with 11-year
maturity. The interest rate will be equivalent to its
interest rate on return, but exceeding 10 per cent per
annum.

Debts worth Bt110 million will be converted into 110
million company shares at a price of Bt1 apiece, and the
repayment period of the rest of the debts will be extended
to 15 years with annual interest of 1 per cent. However,
this portion of debts in the future may be swapped into
shares if creditors accounting for 75 per cent of the total
debts agree to do so.

The company has an option to buy back the 110 million
swapped shares and the future-swapped shares at a price
covering the cost of the shares plus interest, the
statement noted.  If the company purchases the shares
within one to two years after conversion, it will pay only
the cost of the shares.  If the buy-back happens during the
third year, the shares will be sold at a price carrying the
cost plus 5 per cent annual interest, calculated from the
first year. The rate will be increased to 6 per cent in the
forth year and changed to a rate based on Minimum Lending
Rate from the fifth year upward.

The statement said the debt restructuring would strengthen
the company's financial position, largely due to a
significant reduction in the interest burden and a longer
repayment period.  The company's board, at the same time,
agreed to increase its capital from Bt350 million to Bt1.45
billion by issuing 110 million new shares to facilitate the
debt restructuring plan.

In the second quarter of the year Renown showed a lower net
loss of Bt530.4 million, compared to Bt1.03 billion over
the same period last year.  Trading on Renown, had for some
time has been facing a possible delisting, was temporarily
suspended by the SET pending adoption of the rehabilitation
plan. Its latest share price stood at Bt1.  (The Nation  
21-Sep-1999)

SAWAS HORUNGRUENG: Debt rehab deal expected in October
------------------------------------------------------
Asset Management Corporation (AMC) has made progress in the
debt restructuring plan with Sawas Horungrueng, and expects
it to be complete early in October, according to AMC
Managing Director Prapat Srisatayakul.  Sawas Horungrueng
is a major shareholder in NTS Steel, Nakornthai Strip Mill,
and Hemraj Development.

"The reason behind the progress was that the AMC has
granted a discount on the 5 billion baht debts Sawas owes,"
he said. However, he declined to disclose the amount of the
discount.

He said the AMC was able to give the discount because when
the business loans were auctioned it was able to acquire
them at a low price, but a lot of negotiations were still
required.  AMC bought the business loans worth 190 billion
baht from the 56 financial institutions which were closed
down. Most of the debts are in the range of 500 million to
10 billion baht.

A source from a commercial bank, who is Sawas Horungrueng's
creditor, said it is preparing documents for filing a
bankruptcy lawsuit against Sawas as he had so far expressed
no intention of going through any of the debt restructuring
procedures.  (Business Day  21-Sep-1999)

THAI FARMERS BANK: Phatra Finance deal clarified
-------------------------------------------------
Thai Farmers Bank (TFB) is to fully own the Asset
Management Corporation (AMC), to which bad loans from
Phatra Finance were to be transferred on a profit/loss
sharing basis, according to the bank's president Banthoon
Lamsam.

Thai Farmers Bank (TFB) and the Financial Institutions
Development Fund (FIDF) met yesterday in what was believed
to be the final discussions on the Phatra Finance
controversy, with the signing of the agreement expected to
take place within the week.

"The transferred assets from Phatra Finance were to be
based on the book value after they have been fully set
aside for loan loss provisions," he said.

Under the profit/loss sharing terms, Thai Farmers will
receive a third of profits. However, if the AMC incurred
losses, Thai Farmers will in that event shoulder all the
losses. The profit/loss sharing terms will last for five
years where afterwards the book will then be reviewed and
cleared.

Although the AMC is fully owned by Thai Farmers, it plans
to install professional management.  He said the
authorities confirmed the 4.3 billion to 4.4 billion baht
support to Thai Farmers.  Regarding the roadshow which was
postponed to allow time to resolve the Phatra Finance case,
he said as the Phatra problem has now been concluded, Thai
Farmers can provide information to investors regarding the
matter.

He expected that Thai Farmers would be able to sell all
1.17 billion new shares during the roadshow, which is to be
organized in October.

"We will roadshow in October after everything concerning
Phatra Finance has been resolved (in principle)," he said.

A source from Thai Farmers said that the roadshow was
scheduled on October 8 if the agreement on Phatra Finance
is finalised this week.  Thai Farmers Bank earlier reported
to the Stock Exchange of Thailand (SET) it was to increase
its registered capital by issuing 1.33 billion new shares
including shares reserved for conversion of warrants,
raising its registered capital to 26.9 billion baht. The
1.17 billion new shares are to be allocated to existing
shareholders at 1:1 ratio at 20 baht apiece.  TFB's share
price yesterday closed at 41.75, up 0.25 baht.  (Business
Day  21-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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