TCRAP_Public/991005.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

         Tuesday, October 5, 1999, Vol. 2, No. 193

                            Headlines


* C H I N A  &  H O N G  K O N G *

CHINA SCI-TEC: Posts annual loss again
GITIC ENTERPRISES: Posts first-half loss
ITC:  Posts annual loss
QPL INT'L HOLDINGS: Posts annual loss
SINO-I.COM: Posts annual loss again
TEAM CONCEPT HOLDINGS: Posts first-half loss


* J A P A N *

MAZDA MOTOR CORP.: To pay huge U.S. fine
NIIGATA CHUO BANK: Applies for liquidation


* K O R E A *

DACOM: Facing takeover by LG Group
DAEWOO GROUP: Securities unit completely separated now
DAEWOO GROUP: 7 subsidiaries to separate this month
DAEWOO GROUP: Being probed for disguised affiliations
HALLA GROUP: Being probed for disguised affiliations
HANJIN GROUP: NTA imposes taxes and fines
HYUNDAI GROUP: Being probed for disguised affiliations
SAMSUNG GROUP: Being probed for disguised affiliations
SSANGYONG GROUP: Being probed for disguised affiliations
TONG YANG GROUP: Being probed for disguised affiliations


* M A L A Y S I A *

UNIPHOENIX CORPORATION: Posts annual loss


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

MONDRAGON INT'L PHILIPPINES: In refinancing talks
PILIPINO TELEPHONE CORP.: Close to debt rehab scheme


* S I N G A P O R E *

HESHE HOLDINGS: Posts annual loss again


* T H A I L A N D *

BANGKOK RANCH: To delay shareholder vote on rehab plan
KRUNG THAI BANK: Focusing on goals
POWER P: Signs debt rehab agreements with 5 creditors
SIAM CITY CEMENT: To refinance its debts
TELECOMASIA CORP.: In debt rehab talks with NEC           
THAI OIL CO.: 90 percent of creditors support rehab plan


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

CHINA SCI-TEC: Posts annual loss again
--------------------------------------
China Sci-Tech's net losses widened to HK$214.42M in the
year to March 31 from $36.97M a year earlier.  Provisions
of $173.03M were made for bad and doubtful debts.  Turnover
grew by 20.36% to $187.79M.  Operating losses climbed 28.7%
to $62.57M.  Loss per share was 42.3 cents.  No dividend
was recommended.

GITIC ENTERPRISES: Posts first-half loss
----------------------------------------
GITIC Enterprises reported a $15.62M net loss in the first
half to June 30 as it was hit by the tough building
materials market and the fallout from the bankruptcy of
ultimate parent Guangdong International Trust and
Investment Corp.  The company earned a $7.34M net profit in
the year-ago period.  Turnover fell to $69.84M from
$170.82M previously.  Loss per share was 3.2 cents,
compared with earnings of 1.5 cents.  No interim dividend
was declared.

ITC:  Posts annual loss
-----------------------
Investment-holding company ITC reported a $341.75M loss for
the year ended March 31.  The company attributed the poor
result mainly to Paul Y ITC Construction's $797.7M loss in
the period.  ITC has a 39.9% stake in the construction
company.  

In the period, Paul Y ITC reported an exceptional loss of
more than $1B from provisions made for property and
equities investments, through the company's investment arm,
Paul Y Properties.  ITC is counting on the speculative
interest in technology stocks to help it become profitable
this year, according to vice-chairman Lau Ko Yuen.  

ITC directly holds a 27% interest in Star East Information
Technology and indirectly holds 350M shares in New World
CyberBase through Paul Y ITC Construction Holding.  Mr. Lau
said after Paul Y Properties was reorganised into an IT
company, the value of ITC's interest in it surged to about
$1B from a $100M carrying cost.

QPL INT'L HOLDINGS: Posts annual loss
-------------------------------------
Semiconductor manufacturer QPL International Holdings dived
into the red by reporting a $3.29 billion net loss for the
year to 30 April as compared with the $413 million net
profit last year.

The company blamed oversupply and keen price competition in
the industry for the adverse performance.  The net loss
includes an exceptional loss amounting to $3.19 billion,
arising from both continued and discontinued operations,
according to a statement.  By the end of 1998, the company
ceased manufacturing silicon wafers carried out by its
subsidiary NWL, the statement said.

Before the suspension, the operation recorded a turnover of
$114 million.  During the financial year 1999, the
company's continued operations posed a turnover of $2.22
billion.  Meanwhile, the company recorded the second
consecutive operating loss amounted to $1.85 billion in
1999.  The loss per share was about $6.46 compared with the
earning per share of 65 cents made in 1998, the statement
said.  The group declared no final dividend for the fiscal
year 1999.

By the end of June, the company's debts amounted to $2.84
billion. It is expected the amount will be slashed to $426
million upon the completion of its subscription agreement
with a group of investors led by Chase Asia Equity Partners
LP.  Under the agreement the investors agreed to subscribe
50 per cent stake in ASAT (UK), a subsidiary of QPL in the
United Kingdom.

The group has also committed approximately US$10 million
(HK$78 million) additional capital expenditure to raise
ASAT's production capacity.  ASAT has earlier entered into
a contract agreement worth about US$150 million with a
major multi-national corporation for its integrated circuit
assembly, the largest contract it has ever received.  The
company expects it will be debt-free by the end of this
month upon completion of share transaction.  (Hong Kong
Standard  04-Oct-1999)

SINO-I.COM: Posts annual loss again
-----------------------------------
Sino-I.Com narrowed its net losses to $385.8M for the year
to March 31, from its previous loss of $451.8M a year
earlier.  The firm has decided to dispose of its investment
in the hotel business in Philippines for $266.8M.  Loss per
share amounted to 36.3 cents, as against a 71.8 cent loss
per share in the previous period.  Turnover for the period
was $187.9M, representing 26% of that for the previous
yearly period which stood at $712M.  

Operating loss amounted to $113.1M, less than $152M for the
previous period.  Exceptional items for continuing
operations totalled a minus $187.9M, including $68M deficit
on revaluation of investment properties and $50M writedown
of interests in a property development project to net
realizable value.  Net loss before taxation totalled
$375.7M.  

TEAM CONCEPT HOLDINGS: Posts first-half loss
--------------------------------------------
Telecommunications and electronic products manufacturer and
marketer Team Concepts Holdings posted a net loss of
$20.51M in the six months to June 30 as a result of lower
profit margins.  It lost $20.08M in the corresponding
period last year.  No interim dividend was declared.  Loss
per share was 7.96 cents compared with 8.08 cents a year
go.  The pretax operating loss widened to $20.4M from
$19.15M despite a 57.09% rise in turnover to $227.96M.


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

MAZDA MOTOR CORP.: To pay huge U.S. fine
----------------------------------------
Mazda will pay the Federal Trade Commission the largest
civil penalty ever imposed by the FTC for allegedly failing
to clearly disclose important car leasing terms in its
advertising, federal regulators said.

The civil penalties include a $4.05 million fine for what
the FTC said was a failure to abide by a February 1997
agency order about Mazda's advertising. The car company
also agreed to pay a total of $1.2 million in fines and
costs to 24 states.  The complaint and consent decree were
filed Thursday in U.S. District Court in Los Angeles.

Separately, Mazda Motor of America Inc. agreed to pay a
$900,000 penalty and to modify its reporting of emission
control defects in order to settle allegations it violated
the Clean Air Act, the Justice Department said.  The
department and the Environmental Protection Agency filed
the settlement in U.S. District Court here to resolve civil
claims that Mazda failed to promptly report defective
emission control devices in its MPV minivans.

Mazda, based in Irvine, Calif., said it has sought to
comply with lease disclosure requirements and has put into
practice new procedures to ensure full compliance.  The
earlier FTC order prohibited Mazda's television ads from
misrepresenting the total due at lease inception and from
highlighting only the most attractive terms of the lease --
such as low monthly payments.

The settlement also required Mazda to make a number of
disclosures before it could state the amount of any
payment. They included a clear and conspicuous disclosure
that the transaction advertised is a lease, the total
amount due at lease inception and whether a security
deposit is required.  The FTC said Mazda continued to run
ads in violation of the order until early 1998. For
example, the disclosures were in small and unreadable
print, offset by distracting images or sounds, or appeared
on the screen for too short a time, the agency said.

Mazda Motor of America Inc., doing business as Mazda North
American Operations, is a subsidiary of Mazda Motor Corp.
of Hiroshima, Japan.  In a statement, Mazda said consumers
who leased cars between February 1997 and early 1998 were
informed of the complete terms and conditions before
signing any deal.  (NewsHound  03-Oct-1999)

NIIGATA CHUO BANK: Applies for liquidation
------------------------------------------
Niigata Chuo Bank Ltd said yesterday it has applied for
liquidation, the latest casualty of Tokyo's crackdown on
its troubled banking sector.  Niigata Chuo will be the
seventh bank to be either taken over by the government or
go into liquidation as the country tries to clear out the
bad loans holding back its financial sector.  (Star Online  
02-Oct-1999)


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

DACOM: Facing takeover by LG Group
----------------------------------
The LG Group, Dacom's largest shareholder, will hold an
extraordinary meeting of shareholders next month and begin
the takeover of the telephone and Internet service carrier.

The meeting of the board of directors, abandoned Sept. 29
due to a physical blockade by Dacom labor union members,
will convene today, the group announced last Saturday. The
date of the extraordinary meeting of the shareholders,
during which changes in the statute concerning the
appointment of the company president and election of the
chief of board of directors will take place, will be set at
today's board meeting.

The present company statute calls for the selection of its
president by a recommendation committee of nine persons,
including the three largest shareholders and one minhority
shareholder. The LG Group is expected to change that at the
upcoming shareholders' meeting in favor of direct election
of the Dacom president.

While the current Dacom President, Kwak Chi-young, has
expressed his intention to resign following the
shareholders' meeting, the LG Group is expected to keep the
remainder of the current executives. With the takeover of
Dacom, the LG Group, which operates LG TeleCom, a wireless
carrier, will broaden its reach in the information and
telecom sector.

Currently, the LG Group holds a 23.32 percent stake, the
Samsung Group 23.28 percent and the Tong Yang Group 16.82
percent. However, the Tong Yang Group's shares have been
transferred to the LG Group. (Korea Herald  04-Oct-1999,
Korea Times  03-Oct-1999)

DAEWOO GROUP: Securities unit completely separated now
------------------------------------------------------
The Fair Trade Commission has recently been informed by a
company official that Daewoo Securities Co. has been
completely separated from the Daewoo group.

The brokerage's separation from the group automatically had
its two subsidiaries, an asset management consulting firm
and futures trading company, secede from Daewoo as well.
In August, creditors of the Daewoo Group took over
management of the securities company as part of their
efforts to help the company recover from severe financial
crunch.

Meanwhile, creditor banks of Daewoo Electronics plan to
finalize a workout plan for Daewoo Electronics by Oct. 15.
Negotiations with Walid Alomar of the United States on the
sale of the electronics have ground to a halt because of
the unfavorable contract terms put forward by the American
investment company.  The creditors' move to map out a
rescue plan is designed to make the company as attractive
as possible.

In a similar move, creditors of Daewoo Heavy Industries are
taking steps to separate the shipbuilding unit from the
company before the end of this month. But market watchers
say it will be diificult to sell the shipbuilding unit
because of its size and the fact that the global
shipbuilding industry is entering a business downturn.
(Korea Herald  04-Oct-1999)

DAEWOO GROUP: 7 subsidiaries to separate this month
---------------------------------------------------
Seven Daewoo companies, including Daewoo Electronics and
Daewoo Heavy Industries, which can potentially normalize
operations on their own will be separated from the parent
firm by the end of this month.

At the same time, five other Daewoo subsidiaries, including
Daewoo Corp. and Daewoo Motor, will undergo corporate
workouts toward the normalization of their businesses.
Announcing the normalization plan for Daewoo subsidiaries,
main creditors of the conglomerate said details of plans
for business normalization will be finalized soon.
The first seven, which will similarly undergo corporate
workouts, also include Daewoo Telecom, Orion Electric,
Daewoo Electric Components, Ssangyong Motors and Keongnam
Industries.

"In the case of these seven companies, there is a high
potential for their business normalization and details of
their workout programs will be drawn out by the end of the
month," one Korea First Bank official said.

Once the companies are admitted into the workout programs,
their debts are frozen for a specific period of time and
fresh funds are injected to help them normalize their
operations.  In the case of Daewoo Electronics, the 7.5
percent of its shares held by Daewoo subsidiaries will be
overtaken by the creditor banks and be completely separated
from the parent body.

Similarly, Daewoo Heavy Industries is expected to be
divided into the shipbuilding, machinery and remaining
business divisions for each entity to undergo separate
workout programs.  The TDX (time division exchange) unit of
Daewoo Telecom will also be broken away from the main
subsidiary and Orion Electric will be separated from Daewoo
for their respective normalization programs.

As for Ssangyong Motors, which was to be merged into Daewoo
Motor, a normalization program will be developed separately
before it is sold to a third party, the creditor banks
said.

"In all of the cases, there is confidence among creditors
that they can return to normal operation but distinctive
and separate programs are needed to attain the objective,"
one bank official said.

Meanwhile, the creditor banks said separate restructuring
programs will be introduced for five other Daewoo
subsidiaries, including the trade and construction
divisions of Daewoo Corp.  The creditor bank officials said
their workout programs will be finalized by Nov. 6
regardless of whether or not evaluation of their assets and
debts are completed.

They said the restructuring program for Daewoo Motor will
proceed without reference to its negotiations for the
injection of foreign equity from General Motors.
Whatever the case may be for the 12 subsidiaries, the
creditor banks said they will distinctively share the
responsibility for the financial demise with the top
management and major shareholders.  (Korea Times  04-Oct-
1999)

DAEWOO GROUP: Being probed for disguised affiliations
HALLA GROUP: Being probed for disguised affiliations
HYUNDAI GROUP: Being probed for disguised affiliations
SAMSUNG GROUP: Being probed for disguised affiliations
SSANGYONG GROUP: Being probed for disguised affiliations
TONG YANG GROUP: Being probed for disguised affiliations
--------------------------------------------------------
The Fair Trade Commission said yesterday that it is
investigating 16 units of six major chaebol groups to
determine whether they are disguised affiliates. The six
groups are Hyundai, Daewoo, Samsung, Ssangyong, Tong Yang
and Halla.

In the case of Hyundai, a firm specializing in home
automation devices is under probe, while for Daewoo, a
company producing car seats is being examined. Samsung has
two units under investigation, Ssangyoung 3 firms, Tong
Yang eight firms and Halla one company, the commission said
in a report presented to the National Assembly.  A
commission official said similar probes have been conducted
on 29 firms this year, all proven to be unaffiliated with
chaebol groups.  (Korea Herald  05-Oct-1999)

HANJIN GROUP: NTA imposes taxes and fines
-----------------------------------------
The government has imposed 541.6 billion won in taxes on
Hanjin Group and its owners on 1.0895 trillion won in
unreported income, the largest in terms of the amount of
unreported income uncovered and subsequent taxes levied.

The National Tax Administration (NTA) yesterday filed a
complaint against Hanjin's honorary chairman Cho Choong-
hoon and his two sons -- Yang-ho, Korean Air chairman, and
Hanjin Shipping & Marine chairman Soo-ho for allegedly
stashing away rebates from airplane purchases and using
them for personal purposes. An investigation by the state
prosecutor is set to follow.

The Hanjin case is the largest in scale, surpassing the
NTA's imposition of 136.1 billion won in taxes on Hyundai
Group in connection with the group's under-reporting of its
income in 1992. About 120 billion won was returned to
Hyundai after a protracted tug of war in court.

In a separate special tax probe into affiliates of the
Unification Church-tied Ilsung Construction, Segye Times
daily newspaper and others, state tax collectors found
217.2 billion won in unreported income, imposing 35.9
billion won in taxes.

According to NTA officials, the special tax probe initiated
in June found that in 1991-1998, KAL had allegedly received
a huge sum of rebates in return for equipping its aircraft
with the engines of a certain U.S. manufacturer and used
168.5 billion won of it for the group's honorary chairman
Cho's personal use. Hanjin is a Korean transportation giant
which owns Korean Air (KAL), one of the nation's two flag
carriers.

The NTS also said that KAL has been charged with illegally
remitting US$184 million to a 100% local firm established
by the airline in Ireland, which is a tax haven. According
to the tax office, the company managed to avoid paying
W81.4 billion in taxes as a result.  The state tax
collectors said that some of the rebates were transferred
to a local corporation in Dublin, Ireland.

The NTA alleged that the Chos had not transferred some of
the money received in the sale of used aircraft to KAL's
overseas operations and had kept the down payment for
airplane purchases in its local operations in violation of
pertinent regulations.

Hanjin Merchant & Marine had stashed away 3.8 billion won
overseas on 16 occasions since 1996, NTA officials said.
The group's honorary chairman Cho had allegedly used
extralegal methods in dividing his group and handing down
affiliates to his offspring since 1990.

The NTA said that during capital increases made into Hanjin
affiliates in 1994-1998, the Cho brothers had used 157.9
billion won for operating funds and received 38.6 billion
won from their father, failing to pay 96.7 billion won in
income and gift taxes.

Meanwhile, the NTA found, during its probe into Unification
Church-tied affiliates, that Ilsung Construction had failed
to report income of 74.9 billion won, Hankook Titanium 38.8
billion won and the affiliated newspaper 93 billion won,
unreported income amounting to 217.2 billion won. Taxes of
35.9 billion won have been imposed.  

The NTS said it has referred the entire case to the
prosecutor's office for a criminal investigation, as the
involvement of overseas firms would make it difficult for
the tax office to conduct a thorough investigation.

The NTS also said the same day that an investigation of the
Tong Il group showed that three subsidiaries had not
reported W217.2 billion in income, and that it has handed
down a W35.9 billion penalty on the group. According to the
NTS, group firm Il Sung Construction failed to report W74.9
billion; Korea Titanium W38.8 billion; and Segye Times W93
billion. Former Il Sung president Lee Chang-ryul has been
turned over to the prosecutor's office in connection to the
case.

Following the NTS announcement, the Ministry of Justice
banned the three Hanjin executives, Lee Chang-ryul and
former Segye Times president Lee Sang-hoi from leaving the
country.  (Korea Times, Digital ChosunIlbo  04-Oct-1999)


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

UNIPHOENIX CORPORATION: Posts annual loss
-----------------------------------------
Uniphoenix Corporation Bhd recorded a lower pre-tax loss of
RM70.77mil for its financial year ended June 30 from
RM105.03mil pre-tax loss posted in the previous period.
Group turnover also decreased to RM80.3mil from RM409.5mil
previously.

At the company level, it recorded a pre-tax loss of
RM10.9mil million in 1999 compared with RM26.8mil
previously, while turnover was also lower at RM10.03mil
from RM18.05mil previously. Pending the outcome of an
ongoing restructuring scheme for the company, the directors
do not foresee significant improvement in the performance
of the group in the next 12 months.  (Star Online  02-Oct-
1999)


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

MONDRAGON INT'L PHILIPPINES: In refinancing talks
-------------------------------------------------
Unsure of the entry of a new investor, Mondragon
International Philippines, Inc. (MIPI) is now talking with
a California-based trust fund for an eight-billion-peso
(US$196 million at PhP40.746:US$1) refinancing scheme, MIPI
chairman Jose Antonio Gonzalez said over the weekend.

As this developed, Clark Development Corp. (CDC) president
and chief executive Rufo Colayco agreed to an MIPI proposal
to reopen the Mimosa Leisure and Resort Corp. (MLRC) casino
and divide the earnings between MIPI, the government and
MIPI's creditor banks.  The casino used to earn PhP100
million (US$2.4 million) every month and was MIPI's bread
and butter until it closed last November due to a legal
squabble with the Philippine Amusement and Gaming Corp.
(Pagcor).

San Diego, California-based Ideal Funding, Inc. had
informed MIPI of its interest to "assist the (MIPI's)
project funding efforts."  MIPI is eyeing a $200-million
package with a 7% interest and a 20-year repayment period.
The listed company would have wanted to sell 40% of
subsidiary MLRC for $175 million -- enough to pay its PhP7-
billion (US$172 million) obligations with creditors and the
government.

Three foreign investors -- including Macau casino tycoon
Stanley Ho -- have earlier expressed interest in bailing
out Mondragon, but are said to now having second thoughts
after Pagcor revoked MIPI's license to operate the Mimosa
casino.

"I really don't think we could get an investor until
refinancing comes in. For one, those (investors) who have
expressed interest are concerned about Pagcor's statement
that they cancelled our casino permit," Mr. Gonzalez told

BusinessWorld after a briefing with reporters at the Mimosa
last Saturday.  He is set to leave for the United States
for the negotiations this October or after the completion
of a business plan which is hinged on a time-sharing
arrangement for the Mimosa Leisure Estate facilities.
US-based Resort Suites International (RSI) is arranging the
vacation timeshare ownership package for Mimosa which will
be launched in January. The scheme will earn for the
company some $75 million in gross revenues in the next
years.

RSI president Bruce Tulloch is also making the preliminary
arrangements for the Ideal Funding refinancing package. RSI
is eyeing 10 other resorts nationwide to participate in the
timeshare arrangement but would launch the project through
Mimosa.  Meanwhile, CDC's Mr. Colayco said he "would
support any proposal which would enable the casino to open
sooner rather than later" to enable MIPI to pay its overdue
obligations with CDC which amounts to some PhP325 million
(US$8 million).

"I see two risks in this situation. First, what would
happen to the value of MIPI's stocks once Mimosa is sold to
another investor? The implications would be devastating to
the stock market. Second, I think Gonzalez runs a good
show, (although) his finances is something else," Mr.
Colayco said.

The casino has stopped operating since November 1998 due to
MIPI's legal war with Pagcor which the Supreme Court has
yet to decide on. Pagcor said it has cancelled MIPI's
casino permit although this was denied by the company
saying the matter is still being studied in court. Pagcor
also alleged MIPI of gaming irregularities as well as
contract violations when it made changes in the casino's
internal transactions and operating procedures to bring
down Pagcor's profit share from the casino operations.
(Business World  04-Oct-1999)

PILIPINO TELEPHONE CORP.: Close to debt rehab scheme       
----------------------------------------------------      
Cellular firm Pilipino Telephone Corp. (Piltel) and its
creditor banks are set to sign this Friday a memorandum of
understanding (MoU), which would lead to the finalization
of Piltel's debt restructuring scheme, banking sources
said.

Piltel has 34.9 billion Philippine pesos (PhP) (US$856
million at PhP40.746:US$1) in loans to banks, suppliers and
bondholders.  The MoU includes the indicative restructuring
terms, which would entail the eventual conversion of half
of Piltel's loans into common shares of parent company
Philippine Long Distance Telephone Co. (PLDT), the sources
said.

"The MoU is not as binding as a loan agreement. We want to
finalize the rehabilitation plan before the year ends," one
of the sources said.

The source added the comfort letter which PLDT is supposed
to give to creditor banks remains as a condition for the
signing of the loan agreement. The draft of the comfort
letter indicates that PLDT will not turn its back on its
cellular subsidiary. Another source said the indicative
terms would likely not change when the deal is finalized.

Under the proposed rehabilitation plan, Tranche A, or 50%
of Piltel's debts, will be converted into Piltel notes. One
Piltel note will be exchanged for one PLDT preferred stock
or convertible note, which is convertible to PLDT common
stock. The notes will bear an interest of 1%, which will be
payable annually.  Tranche B, or 25% of the cellular
company's obligations to banks, will have a 10-year
repayment term and an interest rate of 1% plus the 91-day
T-bill rate for peso-denominated loans and 1% plus the
three-month London Interbank Rate (LIBOR) for dollar
denominated loans.

A balloon principal repayment scheme will be adopted for
tranche B, wherein the principal will be paid on the tenth
year. Tranche C, or the remaining 25%, will have a 15-year
repayment term with a similar interest rate. Payment of
interest will be on a semiannual basis, but there will be a
four-year grace period on principal payments. In the fifth
year, 2% of the principal will be paid. From years six to
14, an equivalent of 90% of the principal will be paid, or
10% yearly. The remaining 8% will be paid on the 15th year.

More than majority or over 67% of the creditor banks have
already approved the inter-creditors agreement. Under this,
banks will not file any case against Piltel nor liquidate
any of the firm's assets used as collateral while the
rehabilitation is ongoing. Also, banks which have deposits
from Piltel cannot take the deposits as substitute payment
for Piltel's debts.

Piltel has been restructuring its loans to creditor banks
since early this year. Of its PhP34.9-billion loan, one-
third is owed to creditor banks, one-third to Marubeni
Corp. of Japan and the remaining to bondholders.  Among the
creditor banks, state-owned Land Bank of the Philippines
(Landbank) has the biggest exposure with PhP2 billion
(US$50 million).  The other big lenders are the Chase
Manhattan Bank N.A., Bank of America NT & SA, PCIBank, Far
East Bank and Trust Co., Deutsche Bank, Bank of the
Philippine Islands, and Credit Agricole Indosuez.

Other creditors are Banco Santander, Bank of Commerce,
China Banking Corp., Equitable Banking Corp., Global Bank,
HSBC, Philippine Banking Corp., United Coconut Planters
Bank, ING Bank, Banque National de Paris, Citibank N.A.,
Credit Lyonnaise, Standard Chartered Bank and the US
Export-Import Bank. (Business World  04-Oct-1999)   


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

HESHE HOLDINGS: Posts annual loss again                    
---------------------------------------                       
Heshe Holdings has slashed its full-year net loss to $1.5
million from $7.2 million, thanks to the shedding of its
garment retailing business which lost $5.2 million in the
previous financial year.

After accounting for extraordinary items, Heshe recorded
bottom-line earnings of $797,000 for the year ended June
30. The extraordinary items came on the back of a $3.4
million gain from the disposal of long-term quoted
investments, less $387,000 in provisions for non-trade
doubtful debts.  Turnover rose 7.3 per cent to $55 million.

Heshe's export garment division was the only profitable
business in the group, contributing $2.8 million in
earnings -- a 27 per cent rise compared to the previous
year. Its turnover grew 5 per cent to $45 million.  Sales
of the food and beverage (F&B) division soared 128 per cent
to $6.7 million but start-up and development costs led to a
loss of $1.2 million.

Heshe expects its export garment business to perform well
again in the current financial year. To fuel further
growth, Heshe is considering more production facilities in
Batam and China. Heshe has said that it intends to list the
business.  The F&B division will also open more restaurants
this year, with Billy Bombers seeking "actively" to sell
franchise rights in the US, Taiwan, the Middle East and the
Philippines.

Executive chairman Chia Shi Teck said yesterday: "We have
transformed from a fashion retailer into a diversified
group. Today, we're financially sound."

He said that Heshe, with cash holdings of about $10
million, would be on the lookout for new business
opportunities and acquisitions.  The group expects overall
performance to continue improving in the current year.  
However, it is "concerned" over continuing losses at
Jesselton Holdings Group, in which it owns a 40 per cent
stake.

Mr Chia said that if Jesselton failed to turn around, the
group might have to divest its holdings.  Heshe is also
holding some Clob shares -- mainly Malayan Banking stocks -
- booked at $606,000. The market value of these securities
was $1.2 million as at June 30.  With the latest results,
loss per share narrowed to 0.46 of a cent from 2.3 cents
while net tangible assets backing per share dipped to 13.13
cents from 13.15 cents. (Straits Times  02-Oct-1999)


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

BANGKOK RANCH: To delay shareholder vote on rehab plan
------------------------------------------------------
Bangkok Ranch said it would delay a shareholders' meeting
originally scheduled for last month to approve a debt
restructuring plan until March.  The company signed a
debtor-creditor agreement on July 20, and expects to have
creditors vote on the plan by the end of the year.  
(Bangkok Post  04-Oct-1999)

KRUNG THAI BANK: Focusing on goals
----------------------------------
Who has the biggest strategic non-performing loan at Krung
Thai Bank? The Bank of Thailand. Well, not exactly an NPL
in the traditional sense, but the central bank's Financial
Institutions Development Fund owes Krung Thai up to 10
billion baht in compensation under a yield maintenance
agreement made last year under the August 14 financial
restructuring programme.

The agreement called for Krung Thai to accept assets and
liabilities from First Bangkok City Bank, seized by
regulators early last year. While Krung Thai is obliged to
continue to pay off depositors transferred from First
Bangkok, a huge shortfall is building up because nearly all
the 250 billion baht worth of transferred loans have since
become non-performing.

The yield maintenance scheme calls for regulators to
compensate the bank for the difference between the cost of
paying off depositors and the lost revenues from the non-
performing loans.  Singh Tangtatsawas, Krung Thai Bank
president, said the state bank was focusing on three
policies: rehabilitating non-performing loans, establishing
good governance and risk management, and achieving an
operating profit by next year.

Measures to improve the quality of Krung Thai's loan book,
re-engineering operations and strengthening internal
controls were already in progress, Mr Singh said.  But
achieving an operating profit would depend on the
assistance of shareholders, namely the Financial
Institutions Development Fund and the Finance Ministry,
which collectively hold a 96% stake in Krung Thai.

"The deposits from First Bangkok City Bank represent a cost
for Krung Thai, but at the same time, we haven't yet been
compensated for the lost revenues on the asset side," Mr
Singh said.  "The result is an unusual situation for the
bank, since the balance sheet isn't really representative
of the bank's true position."

Meanwhile, regulators continue to debate details about
establishing an asset management company to take over non-
performing loans stemming from the First Bangkok City Bank
merger.  The management firm would also accept some of
Krung Thai's own bad loans, reported at 59% of total
outstanding credit, or 393 billion baht, at the end of the
first half.

The new firm would be owned by the Financial Institutions
Development Fund. To fund the management company, the
Finance Ministry plans to pay the Fund up to 200 billion
baht for its holdings in Krung Thai.  Once complete, the
ministry will have complete control over the state's
holdings in Krung Thai, with the role of the central bank
limited to being a regulator and supervisor.

Mr Singh said the transfer would help remove past conflicts
over the central bank's role as both supervisor and
shareholder. "The central bank and the Finance Ministry are
discussing pricing of the shares."

The funds will cover an injection of 185 billion baht in
capital from the Fund to cover the First Bangkok takeover,
as well as a capital increase totalling 20 billion baht,
made two years ago.  Talks between the Fund and the
ministry have been stalled on how to compensate the Fund
for its carrying costs.  Yet ultimately, the ministry is
obliged to accept the liabilities of the Fund incurred by
Krung Thai. Other key points remaining to be finalised are
exactly which assets to transfer from Krung Thai to the new
management firm, operating methods and management teams.

One possibility, Mr Singh said, would be to transfer all
loans past due beyond a given date, say 12 months or 18
months, including so-called strategic non-performing loans-
borrowers who refuse to pay despite the ability to do so.
"Whether the asset management firm is set up quickly or
slowly depends on the shareholders," he said.  He said the
bank, beset by a sweeping board shake-up last month
following the leak of a confidential auditors' report, was
making strides to deal with its problems.

"We have to change the bank's culture, and encourage our
staff to be more progressive, more active in offering
service to customers."

A restructuring and redesign programme has already been
completed for nearly 250 branches nationwide, about half
the bank's total network.  Plans call for 30 to 40 branches
to be closed by year-end, eliminating redundancies in the
wake of the First Bangkok merger.  Next year, Krung Thai
says it will open new "corner branches", smaller than
traditional full-service branches, to help improve customer
convenience.

Mr Singh said senior management were also seeking to
improve co-ordination among the bank's seven core operating
units, with centralised supervision and policy-making but
decentralised implementation.  (Bangkok Post  04-Oct-1999)

POWER P: Signs debt rehab agreements with 5 creditors
-----------------------------------------------------
Power-P announced that it signed debt restructuring
agreements with five major creditors covering 88.54% of the
firm's total debt.  The company expects to sign contracts
with nine remaining creditors in November.  (Bangkok Post  
04-Oct-1999)

SIAM CITY CEMENT: To refinance its debts
----------------------------------------
Siam City Cement directors on Thursday approved new
borrowings of up to $200 million and the issuing of up to
ten billion baht in debentures to refinance existing debts.
Debentures will be unsecured and unsubordinated, with a
maturity of up to six years and placed with institutional
investors. Details of the issue will be made by directors
later.  An extraordinary shareholders' meeting to approve
the issue will be held on November 1, with the share
register to attend the meeting closed on October 15.
(Bangkok Post  04-Oct-1999)

TELECOMASIA CORP.: In debt rehab talks with NEC            
-----------------------------------------------        
TelecomAsia Corp has agreed to begin formal debt-
restructuring talks with its Japanese supplier NEC, paving
the way for the company to start charging customers for
personal cordless telephone service, after giving it away
for nearly two years.

Billing will begin no later than November 15, the company
said yesterday.  The private telephone operator signed an
agreement yesterday with secured and unsecured creditors
that will reduce TA's debt to 56.36 billion baht from 63.11
billion, with extended repayment terms as well. TA shares
rose on the news by 1.75 baht, closing at 29.25 baht.

The draft agreement on debt restructuring was submitted to
Telephone Organisation of Thailand president Thongchai
Yongcharoen last night.  Mr Thongchai hailed the agreement,
saying that it would enable the TOT's cordless phone
service to get off the ground as well.  The state telephone
company had planned to use TelecomAsia's PCT network for
its own cordless phone service. However it could not do so
as TA had not yet settled debts with its Japanese
suppliers.

With the agreement now reached, Mr Thongchai said that the
TOT's cordless service would begin simultaneously with the
commercial launch by TA. He said the TOT had to discuss
with TA first which numbers could be allocated for cordless
service. He said the TOT expected to have 40,000 to 50,000
subscribers applying for the new service.

PCT handsets are considerably cheaper than mobile phones
but also have less range. They are marketed as add-ons to a
fixed-line number.  Mr Thongchai said the TOT did not
expect to make a profit from cordless service, but just to
maintain a market base and prevent customers from switching
to TA's service.

TA had been under heavy pressure from the TOT to deliver a
formal agreement, and not just promises of debt
restructuring, by yesterday, or the state agency would
scrap its plan to use the TA network. The result would have
been a longer delay in the time it would take for TA to
receive a return on its investment. TelecomAsia holds a
concession from the TOT to operate 2.6 million fixed lines
in Greater Bangkok.

TA executive committee chairman Ajva Taulanonda said the
debt restructuring plan was a permanent step to restore the
company's financial stability to maintain its leadership in
the industry. Under the agreement, the secured creditors
have agreed to extend 49.65 billion baht of principal
repayments, with the first payment being in the second
quarter of 2002 and the last payment being made no later
than the end of 2008.  The remaining 13.46 billion baht in
unsecured loans have been restructured with a combination
of immediate cash repayments or approximately 5.61 billion
baht, and deferred promissory notes.  The reductions are
based on an exchange rate of 40 baht to the US dollar.

As a part of the package, TA will issue 702 million
convertible preference shares at 10 baht par, representing
24% of the increase in paid-up capital, to its largest
creditor, Kreditanstalt fur Wiederaufbau (KfW), in return
for US$150 million.  Proceeds from the issue will be used
to repay unsecured creditors.

KfW, the German development bank, also has agreed to give
all existing shareholders an option as well as a right of
first refusal to purchase back the shares from KfW at pre-
determined prices between the third and eighth years of the
agreement. Dr Ajva said the restructuring plan would enable
the company to attain cashflow adequacy and to meet debt-
servicing obligations in the near future, taking into
account any change in operational and regulatory
conditions.  (Bangkok Post  02-Oct-1999)

THAI OIL CO.: 90 percent of creditors support rehab plan
--------------------------------------------------------
More than 90 per cent of Thai Oil Co's creditors are
supportive of the debt restructuring plan proposed by the
company, Industry Minister Suwat Liptapanlop has said.
Suwat said Thai Oil managing director Chulchit Bunyaketu
told him last Thursday that Thai Oil would still have to
wrap up talks with the 124 creditors but the trend was
good.

"Conditions may become better than what is on the plan
which the Cabinet approved earlier. PTT (Petroleum
Authority of Thailand) may be required to inject less
capital [into the refinery]," said the minister.

Previously, PTT won Cabinet approval to inject US$350
million in fresh capital into Thai Oil to help restructure
the $2-billion debt of the refinery.  Suwat said executives
of Thai Oil and PTT would meet him this week after they
conclude the debt-restructuring negotiations. Thai Oil
formally submitted the debt revamp plan to the creditors on
Sept 10.  (The Nation  04-Oct-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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