TCRAP_Public/991001.MBX    T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

              Friday, October 1, 1999, Vol. 2, No. 191


* C H I N A  &  H O N G  K O N G *

HONG KONG CONSTRUCTION: Posts first-half loss
YUE XIU ENTERPRISES: Creditors backing off

* I N D O N E S I A *

PT GREAT RIVER INT'L.: Posts first-half loss

* J A P A N *

ASHIKAGA BANK: Gets injection of gov't funds
BANK OF THE RYUKYUS: Gets injection of gov't funds
CRESVALE INT'L.: FSA suspends operations for 3 weeks
HIROSHIMA-SOGO BANK: Gets injection of gov't funds
HOKURIKU BANK: Gets injection of gov't funds
NEC CORP.: Unveils restrucuturing plan

* K O R E A *

BOKWANG GROUP: Head questioned on tax fraud
DAEWOO GROUP: Gov't braces market for Nov. bond redemptions  
KOREA LIFE: Nationalization to happen Oct. 1
KOREA LIFE: Court backs government action

* M A L A Y S I A *

ABRAR CORP.: Expects restructuring completion soon
BRIDGECON HOLDINGS BHD: Posts first-half loss
GULA PERAK: Aiming for end to restructuring March, 2001
HO WAH GENTING BHD: Posts first-half loss
INTRIA: Has NOT sought restructuring assistance
PARK MAY: Seeking a restructuring
RENONG BHD: Posts narrower annual loss
SCK GROUP: To unveil a restructuring plan next week
TECK GUAN PERDANA: Posts first-half loss
TIME ENGINEERING: Posts annual loss

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

MONDRAGON LEISURE & RESORT: 3 investors inspecting

* S I N G A P O R E *

ALLIANCE TECHNOLOGY: Posts first-half loss
FORM HOLDINGS:  White knight to buy shares, capitalize
GRP: Posts annual loss
HO WAH GENTING: Posts first-half loss

* T H A I L A N D *

AIG FINANCE PLC: Posts first-half loss
INT'L ENGINEERING: Some execs may face criminal prosecution
PHATRA THANAKIT: TFB to cover liabilities shortfall
SIAM CITY CEMENT: Creditors approve restructuring

C H I N A  &  H O N G  K O N G

HONG KONG CONSTRUCTION: Posts first-half loss              
Hong Kong Construction (Holdings) has posted its first
interim loss since listing in 1987, due to a provision of
$280 million mainly charged for its joint-venture power
plant operation in Hainan.

The company reported a loss of $367.4 million for the six
months to June 30. It made a profit of $121.5 million in
the same period a year earlier.  The firm said the
provision was incurred from its 40 per cent stake in a gas
turbine power-plant operator in Hainan Yangpu Economic
Development Zone.  The power company suffered cash flow
problem arising from mounting receivables, Hong Kong
Construction said. Talks are under way to sell the power

No provision was made for its 30 per cent stake in the
zone's developer, Hainan Yangpu Land Development, due to
its limited exposure, the company said.  Furthermore,
virtually all receivables due to the group from the
associate company had been collected last year.  Losses
from associate companies including the Yangpu power company
and mainland property joint ventures also contributed to
the group's negative results.

Property sales in Shenzhen, Guangzhou and Haikou remained
lacklustre and the group said it would continue to pursue
the strategy of maximising rental income until sales
conditions improve.  Profit contribution from construction
was insignificant during the period as most of its
contracts have only recently commenced.

The group is bidding or planning to bid for a number of
projects, including the West and East Rail projects,
construction of the Cyberport, redevelopment of the Kai Tak
site and the proposed Walt Disney theme park.  With
increased turnover, it expected construction would be a
significant source of returns over the next two years.  As
of September, the group has contracts in hand valued at
about $18 billion.  No interim dividend was given, in order
to reserve more capital and maintain a higher level of
liquidity for expansion.  The loss per share was 72.8 cents
against earnings per share of 29.3 cents the previous year.
Turnover rose 22.68 per cent to $1.1 billion, while
operating profit plunged 72.29 per cent to $30.7 million.  
(South China Morning Post  30-Sep-1999)

PACIFIC CENTURY CYBERWORKS: Posts first-half loss          
Pacific Century CyberWorks, formerly Tricom Holdings,
yesterday reported an unaudited net loss of $40.71M for the
six months to June 30, equivalent to a basic loss of $1.76
per share.  

The results reflect the period prior to takeover by Pacific
Century Group consolidated on Aug. 3 this year.  Tricom
Holdings had registered a loss of $7.53M for the first six
months of last year, for a loss per basic share of 66
cents.  The company reported accumulated losses of $389M
brought forward to this year's interim.  In comparison, it
retained profits of $22.23M brought froward from the first
half of last year.  

The results featured a lower turnover of $74.2M against
$166.9M compared to same period last year.  There was an
operational loss of $15M compared with a loss of $8.2M
previously.  An exceptional provision for a slump in
property value accounted for a loss of $24.63M.  
Intensified competition in the telecommunications market as
well as high interest from ongoing investments on the
mainland contributed to the poor performance.

YUE XIU ENTERPRISES: Creditors backing off                 
Creditor banks of cash-strapped Yue Xiu Enterprises
(Holdings) appear to be taking a more relaxed stance after
the company received a cleaner bill of health from its
auditors in a move that should help ease the debt crisis
among mainland firms.

Yue Xiu, the Guangzhou municipal government's investment
arm in the SAR, has been hit by tight credit caused by the
Asian financial crisis and the collapse of Guangdong
International Trust and Investment.  Its creditor banks
said the group needed five years to service outstanding
bank debts of $5.53 billion, based on the latest cash-flow
projection delivered to them yesterday.  They said the
loan-recovery prospects for Yue Xiu were better than for
insolvent Guangdong Enterprises (Holdings), which had
proposed a 10-year repayment plan.

An Asian bank official said: "I expect to receive a five-
year refinancing package for the group, given its cash-flow
projection. It's acceptable, although it will be better if
it will be a three-year plan."

The group has appointed four principal banks to arrange the
refinancing of its unsecured bank debts of $4.65 billion,
turning them into secured ones. The four banks will prepare
a refinancing proposal based on a due diligence report on
the group's existing and new assets compiled by Yue Xiu-
appointed PricewaterhouseCoopers (PWC).  The proposal is
expected to be ready next month.

The PWC due diligence report indicated the group would have
a combined net cash inflow of $7.22 billion in the five
years to 2004.  Its bank debt-to-equity ratio would fall
sharply to 67 per cent from 245 per cent after it received
three Guangzhou property assets worth a combined $6.75
billion from the government. The assets are Guangzhou City
Construction & Development Holdings, Dong Fang Hotel Group
and Mingquanju holiday resort.

At the end of May, Yue Xiu had a net asset value of $2.25
billion and total liabilities of $6.79 billion, including
bank borrowings of $5.53 billion with its interest in
listed arms GZI Transport and Guangzhou Investment being
treated as investments. It had contingent liabilities of
$2.6 billion and interest rate swaps, for hedging purposes,
of $8.9 billion.  After the injection, the group's net
asset value would be raised to $9 billion and total
liabilities to $11.14 billion, including bank borrowings of
$6.1 billion.  If the two listed companies' figures were
consolidated, the net asset value would be $15.69 billion
and total liabilities $16.77 billion, including bank
borrowings of $9.36 billion.  (South China Morning Post  


PT GREAT RIVER INT'L.: Posts first-half loss
Garment maker PT Great River International (JSX:GRIV)
suffered a net loss of Rp20.38 billion (US$ 2.56 million)
in the first six months of this year. The loss declined 50%
from Rp40.94 billion in the same period last year.

Its financial report attributed the loss to still high
sales expenses, which totaled Rp135.08 billion , up from
Rp70.49 billion in the same period last year.  As a result
a substantial increase in net sales to Rp190.66 billion in
the first half of this year from Rp142.47 billion year on
year could only reduce the loss by 50%, the report said.

It said large business expenses in the past two years
contributed to the loss in the January-June period of this
year. In the first six months of this year its business
expenses totaled Rp69.54 billion, down from Rp86.73 billion
in the same period last year.  Its foreign exchange loss
also decreased from Rp33.81 billion to Rp29.61 billion as a
result of the rupiah appreciation against the U.S. dollar.

The company has long term debts amounting to Rp992.97
billion to a syndicate headed by Deutshce Morgan Grenfell
(Singapore) Ltd. Its debt to non syndicate creditor, Bank
Internasional Indonesia, totals Rp2.2 billion.  (Asia Pulse  


ASHIKAGA BANK: Gets injection of gov't funds
BANK OF THE RYUKYUS: Gets injection of gov't funds
HIROSHIMA-SOGO BANK: Gets injection of gov't funds
HOKURIKU BANK: Gets injection of gov't funds
The Deposit Insurance Corp., the state-run operator of the
nation's banking safety net, said Wednesday it has injected
a total of 230 billion yen in public funds into four
regional banks saddled with bad loans.  

The four are Ashikaga Bank, of Utsunomiya, Tochigi
Prefecture, the Bank of the Ryukyus, of Naha, Okinawa
Prefecture, Hokuriku Bank, of Toyama, Toyama Prefecture,
and Hiroshima-Sogo Bank, of Hiroshima, Hiroshima
Prefecture.  Hiroshima-Sogo is a second-tier regional bank
and the other three are first-tier regional banks.  

The 230 billion yen was remitted into the accounts of the
four banks through the Resolution and Collection Bank
(RCC), the state-run body that buys up bad loans, the DIC
said.  Ashikaga will get an additional 30 billion yen at
the end of November under the same government-run
recapitalization program, it said. This would bring
the tally of the injected funds into the four banks to 260
billion yen.

The injection came in tandem with an endorsement by the
Financial Reconstruction Commission (FRC), the banking-
industry regulatory body, on Sept. 13 of the four banks'
applications for the public funds.  The FRC wants to apply
the same recapitalization program to other regional and
second-tier regional banks, which have been languishing
under the weight of huge bad loans, FRC officials said.
Japan has a total of 124 regional and second-tier regional

Several regional banks have already sounded out the FRC on
receiving public funds into their strained capital
accounts, the officials said.  The DIC is expected to
continue to inject public funds into other regional and
second-tier regional banks in the latter half of fiscal
1999 which ends March 31, 2000.

In exchange for the 230 billion yen in public funds, the
four provincial banks will issue and hand over new
preferred shares to the DIC, the deposit insurance-system
operator said.  The DIC itself had to raise the 230 billion
yen for capital injection by taking out loans worth the
same amount from private-sector financial institutions at
an average interest rate of 0.24% per annum.

The DIC borrowed the funds under the legal guarantee that
the government would repay the funds to private lenders if
the DIC eventually finds it impossible to pay off the
lenders. (Kyodo News, NewsHound  29-Sep-1999)

CRESVALE INT'L.: FSA suspends operations for 3 weeks
Japan's financial watchdog yesterday ordered Cresvale
International to suspend all securities operations for
three weeks as punishment for falsifying data.  The
suspension is effective from October 4, said an official
for the Financial Supervisory Agency.

"We have decided on the suspension because Cresvale
falsified some of its data," the official said.

The company sold a string of "Princeton notes" - bonds
issued by its parent firm Princeton Economics International
- through a paper company set up in the Cayman Islands.
Cresvale also bought Princeton notes worth US$3 million for
itself.   But the financial watchdog discovered Cresvale,
when selling Princeton notes, gave "misleading information"
to clients by telling them the notes were approved by both
the Bank of Japan and the Japanese finance ministry.

"That information was totally wrong and the company gave
wrong, misleading information," the official said, adding
that the company also falsified its balance sheet.
(Business Day  30-Sep-1999)

NEC CORP.: Unveils restrucuturing plan
NEC Corp., revising its earnings projections downward for
fiscal 1999 due to falling sales of memory chips and
communications equipment, unveiled Tuesday a restructuring
plan aimed at cutting its interest-bearing liabilities by
600 billion yen over the next three years.

The leading high-technology company said it expects to
chalk up a consolidated net profit of 10 billion yen on
group sales of 5.00 trillion yen in the current fiscal year
ending next March.  (Kyodo News, NewsHound  29-Sep-1999)


BOKWANG GROUP: Head questioned on tax fraud
The High Prosecutor's Office summoned Hong Suk-hyun, the
owner of the Bokwang business group, for questioning
Thursday, in connection with its investigation into the
group for massive tax fraud.

Hong arrived in the morning for questioning, with about 30
reporters from JoongAng Ilbo standing at the entrance of
the prosecutor's office shouting "Stay strong!" to Hong,
who is also president-publisher of the daily. Officials at
the prosecutor's office said their questions focused on
accusations by the National Tax Administration (NTA) that
the group avoided paying W27.8 billion in taxes, and on
whether Hong ordered subordinates to engage in any
activities to avoid tax payment.

Reports say that Hong denied any involvement in the case,
saying that although he is the largest shareholder of the
Bokwang group, he is not involved in the direct or indirect
management of the firm. Hong also maintained that many of
the allegations made by the NTA in the case are inaccurate.
(Digital ChosunIlbo  30-Sep-1999)

DAEWOO GROUP: Gov't braces market for Nov. bond redemptions  
The government plans to announce comprehensive financial
measures to stabilize the bond market before November 10,
when a 20%-discount redemption of Daewoo bonds kicks off.

The government had earlier decided to allow the redemption
of Daewoo subsidiary corporate bonds at 80% of their book
value starting from that date. Consequently, worries have
been mounting around the possibility of a mass redemption
of the bonds, giving rise to rumors of a financial market
crash in November.

A spokesperson at the Financial Supervisory Commission
(FSC) said Thursday that private investors are expected to
redeem about W9 trillion worth of Daewoo bonds on and after
November 10. The spokesperson said that the new financial
policy would ensure that investment trust companies are
safe from any liquidity shortage stemming from any large-
scale redemption of bonds and that a minimum profit margin
will be guaranteed for private investors who refrain from
redeeming the bonds.  (Digital ChosunIlbo  30-Sep-1999)

KOREA LIFE: Nationalization to happen Oct. 1
Korea Life Insurance is scheduled to begin anew as a
nationalized insurance firm October 1. In a meeting at the
Financial Supervisory Commission (FSC) Thursday, officials
ordered the suspension of authority of the existing board
of directors and appointed eight custodians, including
among them FSC officials and former Korea Life directors.

The FSC ordered the custodial group to write off all
outstanding shares of the firm and decided to make a W50
billion investment by injecting government funds through
the Korea Insurance Deposit Corp. (KIDC).

The FSC measure follows the Seoul Administrative Court's
dismissal of a suit filed by Korea Life chair Choi Soon-
yong, who maintains that the government's takeover of the
firm is illegal. A high-ranking FSC official said that Choi
will not have any further involvement in the management of
the firm, as the existing board of directors has been
disbanded.  (Digital ChosunIlbo  30-Sep-1999)

KOREA LIFE: Court backs government action
A Seoul court yesterday upheld a government plan to
nationalize ailing Korea Life Insurance, turning down an
appeal by the insurer's jailed owner.

Following the ruling, the Financial Supervisory Commission
(FSC) suspended the duties of the firm's board members in
an attempt to facilitate the nationalization plan.  In a
sentencing statement, the Seoul Administrative Court said a
government move to declare Korea Life insolvent and scrap
its stock outstanding is legal.

The government action cannot be considered as infringing on
the private interest of Korea Life Chairman Choi Soon-
young, who is now serving a five-year prison term for
capital flight and embezzlement.  The ruling in favor of
the government dealt a fatal blow to Choi's bid to retain
his control on the nation's third largest life insurer,
clearing the biggest stumbling block to the government's
nationalization plan.

It came two weeks after Choi filed a second lawsuit with
the court, demanding that the government's declaration of
insolvency and its capital-reduction order be nullified.
Earlier on Sept. 14, the commission in charge of the
nation's financial restructuring declared the debt-ridden
life insurer insolvent. The FSC also ordered Korea Life's
board of directors to scrap its stock outstanding in the
run-up to the injection of 50 billion won in public funds
into the firm.

Meanwhile, an FSC official said the watchdog suspended the
duties of the firm's board members since they refused to
follow the government's order to scrap Korea Life's
existing shares and increase its capital.  The commission
will soon dispatch a team of government-appointed
custodians to Korea Life to decide on the share scrapping
and the capital increase, he said. Korea Life is now
capitalized at 30 billion won.

Korea Life's stock outstanding will be written off and an
initial infusion of public cash amounting to 50 billion won
will be made by the middle of this month at the latest, he
added.  In order to turn the ailing insurer around at the
earliest date possible, the financial watchdog plans to
pump at least 1.5 trillion won into it.

Korea Life has been placed under special government control
since March this year after it was found to have
liabilities exceeding assets by 2.9 trillion won.  (Korea
Herald  01-Oct-1999)


ABRAR CORP.: Expects restructuring completion soon
Abrar Corp Bhd expects to complete its corporate
restructuring exercise by October. This would involve the
injection of some assets into the company and the emergence
of new major stakeholders, said its executive chairman and
managing director Dr Wan Muhamad Hasni Wan Sulaiman.

He said after the Abrar Corp AGM in Kuala Lumpur that the
company's main focus for the next six to nine months was to
complete the restructuring scheme.  He said the group was
now in advanced discussions with various parties involved
in the scheme, including Pengurusan Danaharta Nasional Bhd.
About 90% of the creditors it was negotiating with were
financial institutions while the remaining 10% were trade
creditors, he said.

Wan Muhamad Hasni said the restructuring scheme, which was
aimed at resolving the issues of Abrar Corp's debt as well
as its diminishing earnings, would involve some assets
being injected into the group.  Abrar Corp posted a pre-tax
loss of RM60.3mil for its financial year ended March 31,
1999. The group's accumulated losses brought forward
amounted to RM87.7mil.

"We have been in discussions with many parties who are
interested (to inject assets into Abrar Corp) and this has
progressed very well," Wan Muhamad Hasni said.  "We have
also been intensely and actively discussing with the
creditors. Hopefully, we will conclude the restructuring in
October ... it should not go beyond October," he added.

Wan Muhamad Hasni added that since the assets to be
injected must have a strong income base, they would most
likely come in the form of "property and projects-based"
assets.  He said upon completion of the restructuring
scheme, the parties injecting their assets would become the
largest shareholders in Abrar Corp.

On whether the restructuring would result in the reduction
of Abrar Corp's existing RM32mil paid-up capital, Wan
Muhamad Hasni said:

"It will probably be hard to say that there will be none
but I really do not know what would be the final
requirement of the creditors. But the assets to be injected
have to be larger than the group's existing paid-up

On whether the exercise would change Abrar Corp's nature of
business, he said: "Definitely, with the new assets, there
will be some changes in the core business."

He added that Abrar's existing board of directors would
remain until the restructuring scheme was completed so as
to provide continuity to the company.  (Star Online  30-

BRIDGECON HOLDINGS BHD: Posts first-half loss
Bridgecon Holdings Bhd has incurred a group loss before tax
of RM13.6mil in the first half year ended June 30 against
RM3.864mil achieved in the corresponding period of 1998.
Releasing its half yearly results here, Bridgecon said
group turnover declined to RM43.729mil from RM94.192mil
previously.  It said business activities of the group,
especially construction, continued to face the effects of
the economic slowdown.  No interim dividend has been
declared for the period under review.  (Star Online  30-

GULA PERAK: Aiming for end to restructuring March, 2001
Gula Perak Bhd hopes to conclude its financial
restructuring exercise by March 31, 2001, which would help
to improve the group's earnings and cashflow position.

Gula Perak chairman Datuk Rahim Baba said for the current
financial year ending March 31, 2000, the group would still
suffer losses as "we are still going through with the
restructuring exercise with some bankers."

The restructuring exercise involves term loans and bonds,
is expected to be fully completed by year 2001.  Rahim told
reporters after Gula Perak AGM in Kuala Lumpur yesterday
that the recent economic downturn and the high interest
rates last year had adversely affected the group in its
core activities in hotels, construction and property

"Despite improvement on the group's operation side, we will
still show losses within the next two years," he said.

For the financial year ended March 31, 1999, the group
recorded a pre-tax loss of RM20.09mil, compared to a pre-
tax profit of RM12.59mil a year earlier.  According to
Rahim, hotel operation will continue to be the group's
mainstay contributing about 50% to the group's total
turnover. This will be followed by property (20%),
plantation and trading division (25%).  (Star Online  30-

HO WAH GENTING BHD: Posts first-half loss
Ho Wah Genting Bhd has recorded a group pre-tax loss before
exceptional items of RM5.862mil for the half year ended
June 30 against a pre-tax loss before exceptional items of
RM26.308mil in the previous corresponding period.  The
group said its turnover fell by 48% to RM29mil from
RM55.738mil in the last six months.  At the company level,
pre-tax loss before exceptional items increased to
RM6.12mil from RM6.02mil while turnover fell 13.7% to
RM534,000 from RM619,000.  (Star Online  30-Sep-1999)

INTRIA: Has NOT sought restructuring assistance
Intria Bhd has clarified that it has not sought, nor has it
any reason to seek for assistance from the Corporate Debt
Restructuring Committee at this point of time.  The company
said its lenders have so far been very co-operative and are
working closely with the management to provide a workable
solution for its proposed debt restructuring.  

According to Intria, a capital reduction is only one of the
options which the company is considering as part of the
proposed restructuring exercise. However, as disclosed
previously, details have not been finalised. (Star Online  

PARK MAY: Seeking a restructuring
Transport group Park May Bhd is seeking the help of the
Corporate Debt Restructuring Committee (CDRC) to
restructure its debts.  

This was in the view that it had aborted its earlier fund-
raising exercise via bonus, rights and bond issues, offer
for sale and an increase in its authorised share capital,
the company said in a statement yesterday.  The company was
looking into the possibility of restructuring its debts to
better match its repayment capacity and had appointed
Commerce International Merchant Bankers Bhd as adviser for
this exercise.  (Star Online  30-Sep-1999)

RENONG BHD: Posts narrower annual loss                     
Malaysian conglomerate Renong yesterday reported net loss
of RM1.41 billion (S$677 million) for the year ended June
30 and said that barring surprises, it expects its
performance to improve in the current financial year.  It
had a smaller net loss of RM781.5 million a year earlier.  
Pre-tax loss grew to RM1.26 billion from RM812 million.

"The directors believe that with the completion of the
debt-restructuring exercise under the CDRC proposal and the
recovery of the nation's economy, the group will be better-
placed to concentrate on its business activities," it said,
referring to the Corporate Debt Restructuring Committee

Renong said that its results were hit by the slowdown in
the economy, high borrowing costs and provisions.  It cited
a provision of RM934.3 million for losses incurred as a
result of the difference between the put price and the
market value of shares in Time Engineering to be put to
Renong under the terms of a 1997 put option agreement.  It
also cited a RM105.23 million provision for the fall in the
value of Time Engineering warrants.

Group turnover fell to RM748.91 million from RM914.88
million. No dividend was declared. Renong shares closed
yesterday at RM2.12, up five sen, while Time Engineering
edged down one sen to RM1.04. (Reuters, Straits Times, Star
Online  30-Sep-1999)  

SCK GROUP: To unveil a restructuring plan next week
SCK Group Bhd is hoping to bury its troubles over the past
one year by unveiling a restructuring plan next week that
will turn the company around.  Its director Low Chin Kiat
said the restructuring plan put forward by the new
management had been submitted to the Securities Commission
(SC) for approval.

"We have been informed by Aseambankers, who is acting as
advisor, to wait for the final word from SC before making
any announcement," he said after the company AGM yesterday.

Low said the restructuring would not affect SCK group's
activities as the company would continue with its core
business of interior decoration and renovation.

"With book orders exceeding more than RM50mil, the new
management team is confident of turning the company
around," he added.

The SCK group has a new management with founder Wong Kok
Poh back at the helm after winning a tussle for control of
the company in April.  The boardroom squabbles reflected on
SCK Group's poor performance for the financial year ended
March 31, 1999, registering a 71.4% decline in turnover to
RM32mil. Similarly, pre-tax loss at group level dropped to
RM14.7mil, a 57.8% decline over the previous year's
performance.  (Star Online  30-Sep-1999)

TECK GUAN PERDANA: Posts first-half loss
Teck Guan Perdana Bhd's pre-tax loss for the half year
ended July 31 increased to RM4.66mil from a RM1.38mil loss
in the previous corresponding period.  The group turnover
for the period reviewed also decreased to RM19.187mil from
RM26.37mil.  In the second quarter alone, Teck Guan
incurred a pre-tax loss of RM2.196mil on a turnover of
RM10.08mil.  Teck Guan said in a statement that the loss
was mainly due to the declining price of cocoa and its
downstream products especially cocoa butter whose price has
been depressed by the weak regional demand.  (Star Online  

TIME ENGINEERING: Posts annual loss                        
Telecommunications firm and Renong Bhd subsidiary Time
Engineering reported that net loss for the year ended June
30 fell to RM132.69 million from RM245.96 million chalked
up in the previous year.  Turnover at the debt-laden
company shrank 11 per cent to RM473.58 million.  Just last
week, Singapore Technologies Telemedia said it had bid more
than RM1 billion for a majority stake in Time Telekom, a
subsidiary of Time Engineering. (Straits Times  30-Sep-


MONDRAGON LEISURE & RESORT: 3 investors inspecting         
At least three foreign investors are taking a close look at
Mondragon Leisure and Resort Corp.'s (MLRC) Mimosa Leisure
Estate and Regency Casino in Clarkfield, Pampanga.

MLRC chairman Jose Antonio Gonzalez told BusinessWorld the
company has also proposed a revenue-sharing scheme with the
government and MLRC's creditor banks to be implemented once
the money-generating casino is re-opened.  Mr. Gonzalez
said interested parties who have already taken a look at
Mimosa are the representatives of Canada-based businessman
George Roman, Macau casino tycoon Stanley Ho, and US-based
investor Rene Walter Bacaradi.

"I am personally talking with two foreign groups and one
refinancing group. They're all foreign," Mr. Gonzalez said
in an interview at his office in Makati City yesterday.

He admitted meeting with businessman Dante Tan, owner of
listed gaming firm BW Resources Corp., but said Mr. Tan is
not investing in Mimosa.  Market talks are rife the BWRC
owner is negotiating in behalf of Mr. Ho, but Mr. Gonzalez
would not confirm the report.  The MLRC executive, however,
volunteered that: "Stanley Ho even asked why this beautiful
casino is closed for so long when it could have been
earning so much money?."

MLRC plans to sell 40% of the company for $175 million. Mr.
Gonzalez said the proceeds form the sale are more than
enough to pull the company out of its current financial
mess. However, the potential investors are reportedly wary
over the status of MLRC's casino permit. State-controlled
Philippine Amusement and Gaming Corp. (Pagcor) earlier
pointed out that the Mimosa casino license "was cancelled
and could not be utilized."

"I wish to ascertain from you if you in fact did say this
because this is preventing the investment or even
refinancing of our debt ... As you know, our casino permit
is indeed valid and our dispute simply must be arbitrated
as our existing agreement calls for," Mr. Gonzalez said in
his letter to Pagcor chairman Alice Ll. Reyes, a copy of
which was furnished to BusinessWorld.

For Pagcor's part, corporate information officer Teodorico
Delfin said MLRC's casino permit "has been revoked as far
as the gaming agency is concerned and is now the subject of
a court litigation due to a number of gaming violations
committed by MLRC."

MLRC may have to apply for a new one, aside from paying
Pagcor 100 million Philippine pesos (PhP) (US$2.4 million
at PhP41.112:US$1) in back dues, Mr. Delfin said in a phone
interview.  The company owes PhP5.5 billion (US$134
million) from three creditor banks; PhP325 million (US$7.9
million) with Clark Development Corp. (CDC); and around
PhP200 million (US$4.9 million) with Pagcor and the Bureau
of Internal Revenues (BIR).

"I am proposing the casino be opened as soon as possible in
order to repay the government from the proceeds of everyday
operation as well as to return to job some 650 people who
have been jobless for nine months now," Mr. Gonzalez said.

Under Mr. Gonzalez's proposal, all income from the casino
operations will be given to the government as well as to
the creditor banks. He is asking for a measly 5% of the
income to maintain the casino premises and keep its
maintenance people employed.  (Business World  30-Sep-1999)


ALLIANCE TECHNOLOGY: Posts first-half loss
Alliance Technology and Development has slashed its net
loss for the six months ended June 30 to $2.9 million from
$5.8 million, helped by its restructuring efforts and cost-
cutting measures.  After accounting for an extraordinary
gain from the sale of certain subsidiaries, it had a
bottom-line profit of $3.8 million. Turnover fell 10 per
cent to $15 million.  (Straits Times  30-Sep-1999)

FORM HOLDINGS:  White knight to buy shares, capitalize
Irisca Investments said yesterday it would "revive and
expand" the business of troubled music company Form
Holdings and position it as a high-technology service

Former stockbroker and investment banker George Thia's
investment vehicle, Irisca, is making a takeover of Sesdaq-
listed Form Holdings with an unconditional offer of five
cents a share.  Under the deal with Irisca, Form will issue
300 million option shares and launch a one-for-four rights

Irisca said it would restructure and position Form as a
high-technology service provider for the movie, music,
media and communication industries after the offer closes
on Oct 21.  The company said there were significant
business opportunities in the three businesses undertaken
by Form.

Irisca will retain and strengthen the distribution network
of Form's core business of production, distribution and
licensing which is targeted at the entertainment market and
education market for children. It will also explore
alliances with other companies and new distribution

Following the acquisition of the option shares, Irisca will
launch a general offer at an undisclosed price for the
remaining Form shares. The rights issue will be
underwritten by Warburg Dillon Read & Associates
(Singapore) Pte Ltd.  Irisca, together with concerted
parties, will hold a 76.3 per cent stake in the enlarged
share capital of Form after the issue.  The issue will
raise about $19.2 million for Form, which will use the
money to repay bank loans and for working capital.

For the six months ended June 30, Form posted a net loss of
$1.67 million, an improvement over a loss of $2.89 million
previously.  In the stock market yesterday, Form ended
unchanged at 28.5 cents on a light volume of 107,000
shares.  (Business Times  30-Sep-1999)

GRP: Posts annual loss
GRP'S net loss for the year ended June 30 worsened slightly
to $2.87 million from $2.76 million previously.  Turnover
slipped 19 per cent to $23.3 million.  It said its current-
year results are likely to improve.  (Straits Times 30-Sep-

HO WAH GENTING: Posts first-half loss
Ho Wah Genting has cut its net loss for the six months
ended June 30 by 16.5 per cent to $2.08 million, benefiting
from lower interest rates and cost-cutting measures.
Turnover retreated 37 per cent to $2.35 million.  (Straits
Times  30-Sep-1999)


AIG FINANCE PLC: Posts first-half loss
AIG Finance Plc recorded a net loss of Bt185.539 million
for the first six months of the year ending June 30, a
significant improvement from the Bt550.423 million net loss
in the corresponding period last year.  The sharp fall in
net loss is the result of a decline in provisions for loan-
loss reserves and the company's expenses, particularly in
interest payment. (The Nation  30-Sep-1999)

INT'L ENGINEERING: Some execs may face criminal prosecution
Some of International Engineering Plc's executives may face
a criminal lawsuit if the securities watchdog finds
evidence of forgery of loan-guarantee documents for its
major shareholder.

Prasarn Trairatvorakul, deputy secretary-general of the
Securities and Exchange Commission, said that the watchdog
is investigating the company's seven directors and
individuals involved after a company director said that he
had no knowledge of the documents used to guarantee the
Bt1.198-billion borrowing for M Group Co Ltd.  M Group, the
major shareholder of IEC, borrowed the amount from Krung
Thai Bank in 1996.

So far, the company has been subject to a daily fine from
the SEC until it can produce additional documents
concerning the guarantee. It was fined for not reporting
the transaction to the exchange.  Earlier, IEC reported
that the board of directors a few years ago approved the
loan guarantee for Macronetics Co Ltd, a subsidiary.
However, it did not make the report about the guarantee for
the M Group.

It has not yet submitted additional information concerning
the loan guarantee to the SEC.  The company formed an
investigation team to check if the board of directors was
aware of the guarantee for M Group. However, no conclusion
has yet been reached.  The Stock Exchange of Thailand has
threatened to file charges at the Economic Crime
Suppression Unit, if IEC fails to make additional
clarification by Oct 15.

Meanwhile, Prasarn added that the SEC has received the
transaction data of Nakornthon Bank shares last year from
the stock exchange. The data will prove if members of the
Wanglee family sold shares of the bank with full knowledge
of the bank's financial problems prior to the
nationalisation in July. If a large number of shares were
sold by the members, they might face charges regarding
insider trading.  (The Nation  30-Sep-1999)

PHATRA THANAKIT: TFB to cover liabilities shortfall
Thai Farmers Bank (TFB) will have to be responsible for the
shortfall of between Bt2.9 billion and Bt3.4 billion if
there is insufficient repayment of Phatra Thanakit's
outstanding liabilities, according to the agreement signed

The agreement was signed by bank president Banthoon Lamsam
and the manager of the Financial Institutions Development
Fund (FIDF) Chaktip Nitibhon.  All the processes will be
implemented on Oct 15, Banyong Pongpanich, chief executive
officer of Phatra announced. He said the Bank of Thailand
will inject about Bt4.3 billion into the finance company.
The good assets of Phatra will then be sold to the Thai
Farmers Bank, and the problem loans will be managed by an
asset management company controlled by bank.

After the liquidation, Thai Farmers Bank will transfer all
97 per cent shares in Phatra to the FIDF together with the
finance licence. He said the shares will be transferred at
Bt1 per share.  Banyong said the combined amount of about
Bt50 billion deposits and borrowings will be repaid, and
that will not be transferred to the Thai Farmers Bank.
Depositors and borrowers will receive the money from the
proceeds of Phatra's good and bad assets sales. The
repayments will also come from the money injected by the

According to Chaktip the proceeds of the assets sales are
expected to be Bt40 billion and the FIDF will provide no
more than Bt4.396 billion.  Yesterday, Thai Farmers Bank
reported to the Stock Exchange of Thailand that its board
of directors had approved the agreement signed between the
FIDF and Phatra.

Under the agreement, the bank will purchase Phatra's normal
loans, special mentioned loans and other performing assets
at book value. As of June 20, the book value of the assets
was Bt15 billion.  The Chantaburi AMC, the company which
will manage the assets, will be established and owned
entirely by Thai Farmers Bank. Chantaburi will buy all of
Phatra's classified receivables at book value after

If the purchase had been made on June 20, the price would
have been at Bt30.8 billion, the bank said. Phatra will use
the net proceeds received from the transactions to repay
all of its outstanding liabilities.  If the proceeds
received by Phatra are insufficient to repay all of the
company's outstanding liabilities, the FIDF will inject not
more than Bt4.396 billion in cash into Phatra.

The bank expected that between Bt1.5 billion and Bt2
billion of the shortfall will be related to carrying costs
incurred by the bank which will result in an additional
charge against net income of the same amount.  According to
the agreement, Chantaburi AMC will be capitalised by Bt30
billion of which Bt6 billion will come from a cash payment
and another Bt24 billion from a loan from the Thai Farmers

The Chantaburi AMC will manage the classified loans for a
period of five years. After the five-year period, the
remaining assets will be revalued by an independent party
which will be agreed between the FIDF and the bank.
Thai Farmers Bank and the FIDF will receive one-third and
two-thirds respectively of any profits resulting from the
operation of the asset management company.

At any time before the closing date, the FIDF will provide
financial support to Phatra's depositors and creditors. On
the closing date, depositors and creditors of the finance
company will be repaid from the net proceeds, including any
additional cash provided by the bank to cover any
shortfall. On the closing date, the bank will also assume a
contingent liability. As of June 30, the contingent
liability was at approximately Bt1.2 billion.

After all the outstanding liabilities of Phatra have been
repaid in full, the bank will transfer all Phatra shares to
the FIDF.  After transferring Phatra's shares to the FIDF,
the bank would be required to recognise certain deferred
taxes. Upon the closing date, due to the uncertainty
surrounding the realisation of such loss for tax-reporting
purposes, Thai Farmers Bank will record a non-cash charge
to reverse this amount.  As of June 30, the deferred taxes
was put at approximately Bt2.1 billion.  (The Nation,
Bangkok Post  30-Sep-1999)

SIAM CITY CEMENT: Creditors approve restructuring
Siam City Cement Plc said all of its 63 creditors with
outstanding debts amounting to US$501.832 million and Bt1.5
billion have approved its debts restructuring plan. The
plan involves issuing 100 million new shares through a
rights offering to repay $250 million debts to its all
creditors proportionately, and rescheduling the remaining
debts for another seven years with a grace period of during
the first two years. New rates for the remaining debts are
2.75 per cent plus London Interbank Offering Rate (LIBOR)
for $196.46 million.  (The Nation  30-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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