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                         A S I A   P A C I F I C

            Friday, October 29, 1999, Vol. 2, No. 211

                                  Headlines


* C H I N A  &  H O N G  K O N G *

GUANGDONG INT'L TRUST AND INV.: Probe won't affect payout
GUANGZHOU INT'L TRUST AND INV.: Guangzhou gov't supportive
GUIJUANG ENTERPRISES: Gov't to inject assets for support
PACIFIC CENTURY INSURANCE: S&P rates below-investment-grade
THEME INT'L HOLDINGS: New bidder enters scene


* J A P A N *

KAWASAKI HEAVY INDUSTRIES: Posts six-month loss
MARUBENI: Moody's downgrades its credit rating
TOSHIBA CORP.: Moody's to review for possible downgrade


* K O R E A *

DAEWOO GROUP: Domestic creditors offer foreign debt payoff
DAEWOO GROUP: Creditors meeting yields no decision
DAEWOO GROUP: Workout plans to be finalized soon
DAEWOO GROUP: Gov't considering court receivership
SAMSUNG GROUP: Leaving auto business behind


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

MABUHAY PHILIPPINES SATELLITE: Holding debt rehab talks
NEGROS NAVIGATION CO.: Posts nine-month loss
UNIWIDE GROUP: Cavite asset could reduce debt


* T H A I L A N D *

PT CHAREON POKPHAND INDONESIA: Signs rehab agreement
SIAM CEMENT: Posts 3rd quarter loss
SIAM CEMENT: To take some reorganization steps
SIAM STEEL INT'L.: Cancels annual meeting, reorg ahead
SUPALAI PLC: To complete rehab agreement by year-end
SUPALAI PLC: To sell assets to speed up restructuring
TOTAL ACCESS COMMUNICATION: To begin debt rehab talks


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

GUANGDONG INT'L TRUST AND INV.: Probe won't affect payout
---------------------------------------------------------
China's investigations into criminal activities at its
failed Gitic trust are unlikely to significantly raise the
payout ratio for creditors, according to its liquidator.

"Criminal cases may have an effect of say 10, 20, 100
million yuan, but whether they will affect the fundamentals
of the company is difficult to say," KPMG Peat Marwick
Huazen partner Louie Choi said.

Guangdong International Trust and Investment Corp (Gitic),
the fund-raising arm of China's Guangdong provincial
government, filed for bankruptcy in January after it was
shut by the Chinese central bank last year for not being
able to repay maturing debt.  On the books, Gitic had 20.9
billion yuan (HK$19.6 billion) in assets against 16.3
billion yuan in liabilities. But last week's liquidator
estimates put net asset worth at negative 16.6 billion
yuan, with recoverable assets of only 7.7 billion yuan
against liabilities of 24.3 billion yuan.

Mr Choi, speaking at his office in Gitic Plaza in Guangzhou
city, said even if government investigations uncovered
enough evidence to build a criminal case, it was unlikely
to change the outcome for Gitic creditors who currently
could expect a debt recovery rate of around 32 per cent.

"I won't expect the company to have gotten into this
situation purely because of fraud or corruption. It must be
a combination of a lot of things," he said.

Mr Choi summarised what went wrong at Gitic in two words:
poor management.  Some company officials probably did not
worry too much if investments lost money because Gitic was
government-owned and losses were perceived to be state
losses and not personal losses.

"Probably in the past, because people's concept of state-
owned enterprises is money from the state, (they would ask)
`why bother?'" he said.

Mr Choi said he had dealt with more than 10 troubled banks
or financial institutions in his career as an accountant,
and typically, a small portion of assets would be bad due
to fraud or mismanagement.

"The rest is still managed in a business manner. But here,
no one managed Gitic," he said.  Gitic Plaza was a prime
example of this, he added.

According to Gitic's books, construction of the 63-storey
commercial building, one of the tallest in Guangzhou city,
was funded by Gitic but ownership belonged to two
subsidiaries, Guangxin Enterprises and Guangdong Real
Estate, neither of which had actually invested any money in
the building.  Gitic Plaza never shows up as an investment
in Guangdong Real Estate's books, and Guangxin Enterprises
had booked the asset as a type of loan investment, which
was against joint-venture laws.

"We always say that this is the best piece of asset of
Gitic's, but no one knows who owns it," Mr Choi said.

He declined to engage in political discussions, but said
purely from a financial point of view, the Guangdong
government was simply a shareholder in Gitic.  The
government appointed managers, but could not be held
financially responsible, he said.

Meanwhile, a Chinese court will soon start allocating
Gitic's property to creditors, Bloomberg News reported.
As of late last week, liquidators had confirmed 543 claims
totalling 34.3 billion yuan, or 88 per cent of the total
debt value claimed from Gitic, it said quoting a report by
the Xinhua news agency. The amount is more than an
estimated 25 billion yuan in likely admitted claims cited
last week by KPMG, which is helping to liquidate Gitic.  
(Reuters, Hong Kong Standard  28-Oct-1999)

GUANGZHOU INT'L TRUST AND INV.: Guangzhou gov't supportive
----------------------------------------------------------
The Hong Kong High Court has accepted a letter from Gzitic
indicating that its parent, China's Guangzhou municipal
government, supported a restructuring scheme floated in
August, banking sources said yesterday.

The court presiding over a petition to wind up Guangzhou
Finance, a Hong Kong-based subsidiary of the Guangzhou
International Trust and Investment Corp (Gzitic), had
ordered Gzitic to produce a letter of intent by 20 October.
The court asked the letter to indicate the Guangzhou
government's support for a restructuring plan floated by
Gzitic's financial adviser PricewaterhouseCoopers.

"The letter is fine as far as it goes. The government said
it supports the restructuring plan, subject to lenders'
approval," said a source close to the 11 banks which filed
the insolvency petition against Guangzhou Finance in
February for defaulting on a US$30 million loan (HK$234
million).

He said the banks were slightly disappointed that the
government's support was qualified, but said the letter was
sufficient to make them comfortable in waiting until 13
December for another hearing.  The plan called for 35 per
cent of Gzitic's US$3.6 billion liabilities to be repaid in
cash, 15 per cent via sales of Gzitic assets over 10 years,
and 50 per cent via financial instruments linked to the new
bank.  (Reuters, Hong Kong Standard  28-Oct-1999)

GUIJUANG ENTERPRISES: Gov't to inject assets for support   
--------------------------------------------------------    
Guangxi provincial government proposes to inject industrial
assets and a plot of land into its only window company in
Hong Kong to settle overdue debts with the Bank of China
(BOC) Group. Guanxi officials said the assets injected in
Guijiang Enterprises could turn around the company and
hence help repay the debts.

The overdue debts now totalled several tens of millions of
United States dollars, said Guangxi deputy secretary-
general Yang Hailin.  He declined to reveal the exact
figure but attributed the overdue debts to "systemic
problems".

The land under consideration can be developed into an
industrial zone, said Wu Yibo, who has just replaced Ye
Xueming as Guijiang's president and general manager after
BOC filed a lawsuit against the company to claim US$8
million.  Mr Wu said the debts, some overdue for more than
a decade, resulted from bad investments in the mainland,
overdue loans from commercial banks and guarantees provided
to its subsidiaries.  (Hong Kong Standard  28-Oct-1999)

PACIFIC CENTURY INSURANCE: S&P rates below-investment-grade
-----------------------------------------------------------
Standard & Poor's has assigned a below-investment-grade
credit rating to newly listed Pacific Century Insurance
because of the company's "overall weak financial strength".

The Bpi rating is a big blow to the SAR's sixth-largest
life insurer, as it precludes many fund managers from
buying its securities.  Many managers are restricted from
investing in securities with such a rating.  It was the
first time Standard & Poor's had given such a rating to a
Hong Kong life insurance company, the agency's associate
director Michael Gross said.

Gross said the company's weak financial position was mainly
a result of its extensive reinsurance arrangements and its
modest capital strength.  A reinsurance arrangement is a
type of risk-management practice in which a life insurer
sells some of its policies to other companies.  Under such
an arrangement, the insurer receives a commission from the
reinsurance companies, which immediately boosts its
financial position, according to Mr Gross.

However, in following years, the insurer must pass the
premium income from the life policies onto the reinsurers,
which significantly reduces its future income.  Mr Gross
said many insurance companies used reinsurance
arrangements, but not as extensively as Pacific Century
does.  Other insurance companies would have only 5 to 10
per cent of their life business sold to reinsurers, but
Pacific Century Insurance had sold 35 per cent of its new
business.

"The extensive use of reinsurance arrangements reflects the
insurer [Pacific Century Insurance] is not trying to pass
the risk but to raise funds by selling the policies to the
reinsurers," he said.  "This is to swap future profit for
current growth."

Mr Gross said the insurer's parent had a modest capital
strength of $355.6 million as at the end of last year,
which would limit its capacity for future growth.  Pacific
Century Insurance also had a weak operating performance
because its agent team had declined last year.  The number
of policy-holders who decided to let their policies lapse
last year had increased by 90 per cent from 1997, Mr Gross
said.

However, he said Pacific Century Insurance's ranking as
Hong Kong's sixth-largest life insurance company meant it
was still in a good market position.  He also pointed out
that the rating given was based on public information about
the company and that S&P's had not interviewed its
management.

Pacific Century Insurance's deputy chairman and chief
executive Andrew Yang Fan-shing said the agency should not
have given the rating without talking to the insurers.  He
said reinsurance was a risk-management measure adopted by
all insurers.  Mr Yang also said the capital strength of
Pacific Century Insurance's parent has risen to more than
$900 million after a share offering in the middle of this
year.  But he said he would not complain to Standard &
Poor's.  (South China Morning Post  28-Oct-1999)

THEME INT'L HOLDINGS: New bidder enters scene              
---------------------------------------------                   
High Fashion International (HFI) yesterday put forward a
$61.67 million takeover bid for cash-strapped fashion
retailer Theme International Holdings, in an attempt to
outbid Giordano International and YGM Trading.

Giordano has proposed an offer of close to $70 million. YGM
has put forward a near $110 million proposal.  The women's
apparel-maker said it proposed to subscribe to $46 million
worth of convertible loan notes and 627 million new Theme
shares at 2.5 cents each, which together could give it a
stake of up to 79.7 per cent.  The proposal is conditional
upon agreement by Theme's creditor banks on an 88 per cent
haircut on its total debt of about $240 million.  Giordano
proposes an 88 per cent haircut and YGM 85 per cent.

High Fashion intends to apply for a waiver to make a
mandatory general offer to remaining Theme shareholders,
and maintain Theme's listing.  High Fashion director
Raymond Wong Shing-loong said he saw synergies between the
company and Theme, adding High Fashion could benefit from
taking over Theme's retail network.

"We have substantial experience in production and exports
marketing, while they [Theme] have a sizeable retail
operation in Greater China," he said.

High Fashion has a small start-up retail operation, with
one outlet in Hong Kong and four mainland outlets.  Theme
had about 120 executive and casual retail outlets in
Greater China. Theme's shares were suspended yesterday
pending an announcement on a proposal by a potential
investor.  (South China Morning Post  28-Oct-1999)


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

KAWASAKI HEAVY INDUSTRIES: Posts six-month loss
-----------------------------------------------
Japanese machinery-maker Kawasaki Heavy Industries lost
money in the six months to September 30, blaming prolonged
recession at home and a strong yen.  The parent company
suffered a net loss of 5.8B yen against a profit of 13.2B
in the same period last year.  The company posted a pretax
loss of 8.8B yen.  Sales fell 15.6% to 364.5B yen.

MARUBENI: Moody's downgrades its credit rating
----------------------------------------------
Moody's Investors Service yesterday downgraded its credit
rating for major Japanese trading house Marubeni, blaming
losses expected from restructuring.

The New York-based credit assessor cut the long-term senior
debt rating by one notch to "Ba2" from "Ba1" and changed
the outlook to "stable" from "negative."

"The rating action reflects Moody's increased level of
concern that the firm's financial fundamentals,
particularly capitalization, will be impacted by additional
pressure from restructuring losses going forward," it said
in a statement.

Marubeni has pledged to cut 900 jobs and slash group level
interest-bearing debt from the current 4,000 billion yen to
3,000 billion yen (US$38 billion to $29 billion) by March
2001.  But the company said last month the plan would force
it to post a parent-level extraordinary loss of up to 100
billion yen in the next two years.  Marubeni would likely
enjoy decreasing accounting forbearance," said the rating
agency.

"In Moody's view, this accounting forbearance has
underpinned its corporate strategy to 'earn out' the
problem of restructuring over multiple accounting periods,"
it said.

In view of Marubeni's weak capitalization, large real
estate portfolio and heavy exposure to emerging markets,
Moody's said the chances were rising that accounting
recognition of embedded losses would outpace gains from
earnings and asset sales, thereby causing larger pressure
on its capitalization than previously expected.  

While Marubeni's restructuring would cut its risks and
slightly improve cash flow, the firm "has not yet
demonstrated signs of a new business model supported by
sustainable sources of earnings generation," Moody's said.
(Business Day  28-Oct-1999)

TOSHIBA CORP.: Moody's to review for possible downgrade
-------------------------------------------------------
Moody's Investors Service Inc. said Wednesday it will
review for a possible downgrade the A2 senior unsecured
debt rating, the (P)A2 domestic shelf registration rating
and the P-1 short-term debt ratings of Toshiba Corp. and
its financially supported subsidiaries.

The review is prompted by slower-than-expected earnings
improvements at the Japanese integrated high-technology
company, the major U.S. credit rating agency said.
Specifically, the action reflects Moody's concern that it
may take longer than expected for Toshiba to recover
profitability and cash flow to revamp its weakened
financial profile, as the speed of changes in its core
businesses are likely to exceed the positive effects of
Toshiba's ongoing restructuring activities.

The rating agency will focus on Toshiba's strategic moves
to develop and market new products where the company is
able to utilize its technological resources, establish
strong market conditions and generate a solid cash flow.
The subsidiaries include Toshiba America Capital Corp. and
Toshiba Capital (Asia) Ltd.  (NewsHound  27-Oct-1999)


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

DAEWOO GROUP: Domestic creditors offer foreign debt payoff
----------------------------------------------------------
Domestic creditors of the sinking Daewoo Group proposed
yesterday that they pay off Daewoo's foreign debts over the
next two years on condition of foreign creditors' debt
write-offs, officials said yesterday.

The proposal was made at a meeting of Daewoo's foreign
creditors held in Tokyo to discuss how to handle the Daewoo
problem.  Daewoo's domestic creditors and the Corporate
Restructuring Coordination Committee, an advisory panel to
the Financial Supervisory Commission, had earlier agreed on
the repayment of Daewoo's foreign debts prior to that of
domestic debts to facilitate negotiations with foreign
creditors on debt rescheduling.

"In return for the payment guarantee of foreign debts,
foreign creditors will be requested to write off a certain
portion of Daewoo's debts," a committee official said.
Foreign creditors will also be asked not to meddle in the
rehabilitation programs for Daewoo's 12 units in the
future, he said.

The demand for debt write-offs is in line with the
government's intention in handling the Daewoo issue that
all creditors share losses according to their exposure, the
official said.  Once foreign creditors accept the proposal,
the talks on the rescheduling of Daewoo's foreign debts are
likely to gain momentum, he added. Daewoo's foreign debts
are estimated at $7.64 billion, or around 10 percent of
Daewoo's total liabilities.

The negotiations between the committee and foreign
creditors on the rescheduling of Daewoo's foreign debts had
been deadlocked as foreign creditors had refused to share
losses and demanded a greater say in Daewoo's
restructuring.  (Korea Herald  29-Oct-1999, NewsHound  26-
Oct-1999)

DAEWOO GROUP: Creditors meeting yields no decision
--------------------------------------------------
The marathon discussion of Daewoo Group's over 200 foreign
creditors yesterday in Japan produced no definite outcome.

Attended by most of the group's overseas lenders, the
meeting in Tokyo's Imperial Hotel ended without any
conclusion on extending the group's $5.05 billion short-
term overseas liabilities.  Those with relatively low
exposure in the group demanded that legal action is the
only option to secure their credits in Daewoo.

They said that without proper procedures for liquidating
some of the group's core subsidiaries, foreign creditors
will have to suffer more losses than those already
incurred.  The major foreign creditors with heavy exposure
in Korea's second largest conglomerate, on the contrary,
argued a solution should be found by continuous dialogues
with the Korean government and Daewoo officials.  They said
that taking legal action will involve too high a risk and
will eventually lead to the bankruptcy of Daewoo as a
whole.

"Most large foreign creditors of Daewoo have no intention
to filing lawsuits to secure their money. We would like to
see a peaceful end to the situation over the group's
overseas debts," a major foreign creditor was quoted as
saying.

After being informed that Daewoo is unable to pay its
short-term overseas debts until the workout plan is
complete, a number of small European creditors have filed
lawsuits to secure their loans in the group.  France's
Netexis Banques Populaires filed a legal action in July
against an overseas subsidiary of Daewoo in Hong Kong for
the amount of $10 million.

Bank Brussels Lambert, the second largest bank in Belgium,
filed a lawsuit in August against Daewoo to secure a $10
million loan for the group's overseas motor sales firm.
Meanwhile, a Daewoo spokesman in Seoul said that
yesterday's meeting was not intended to draw any universal
answer to rollover of the group's foreign debts but was
just was aimed at proceeding one step forward toward a
resolution of the issue.

"We never expected any decision from the Tokyo meeting. It
is just part of a long negotiating process with the
international creditor group," said Moon Ki-hwan, spokesman
for Daewoo Corp.  "We believe another step has been taken
forward to the peaceful end."

The first general meeting of Daewoo's foreign creditors
took place in Seoul on Aug. 18 in which they formed a nine-
member steering body represented by Chase Manhattan,
Citibank, HSBC, ABN AMRO, UBS, Tokyo-Mitsubishi, Dai-Ichi
Kangyo, NAB and Arab Bank.  Through the steering panel, the
foreign creditors demanded the Korean government consult
with them prior to issuing any debt restructuring plans for
Daewoo.

They also offered their opinion through the committee that
the financial authorities offer a guarantee on their
credits in Daewoo should the group fail to repay their
overseas borrowings.  It is only then that foreign
creditors will agree to refrain from legal action and allow
a standstill to Daewoo for their short-term credits, they
said.

However, the two sides have reached no accord on any of the
issues raised in the last three months.  The local
authorities conducted a rehabilitation of Daewoo while
excluding the group's foreign creditors.  On the issue of a
government guarantee, Korean authorities ruled out the
possibility saying the international standard does not
allow the government to offer assurances on private sector
deals.

The foreign creditors on the other hand also failed to live
up to their word of refraining from legal actions as some
have already filed law suits overseas to secure their
money.  (Korea Times  28-Oct-1999)

DAEWOO GROUP: Workout plans to be finalized soon
------------------------------------------------
Beginning tomorrow, local creditor institutions of the
Daewoo Group will gather together to finalize the debt-
workout plans for 12 of the group's ailing affiliates.

The creditors said that they will announce workout plans
for two of the Daewoo units - Orion Electric Co. and
Keangnam Enterprise Co. - Friday, after looking at the
results of the meeting of foreign creditors in Tokyo
yesterday.  The creditors will meet next Monday to complete
the workout programs for Daewoo Telecom Ltd., Ssangyong
Motor Co., Daewoo Motor Sales Corp. and Daewoo Electronics
Components, while the plans for Diners Club Korea and
Daewoo Capital are due out Nov. 3.

For the conglomerate's four main units - Daewoo Heavy
Industries Ltd., Daewoo Electronics Co., Daewoo Corp. and
Daewoo Motor Co. - the lenders said they need more time to
complete the workout plans. They will meet Nov. 2 to narrow
their differences before holding additional sessions later.
The institutions had initially planned to announce workout
schemes today for Daewoo Heavy Industries, Daewoo
Electronics, Daewoo Electronics Components, Orion Electric
and Keangnam Enterprise. But they changed the timetable in
order to fine-tune opinions among the creditors, according
to a high-ranking official at one of the creditors.

The creditors expressed concerns that the meetings will
face a bumpy road ahead because of conflicting interests
among banks, brokerages and investment trust firms. "I'm
very concerned that even if we come up with workout plans,
differences among the creditors might prevent them from
passing," said another creditor official.

Meanwhile, the Corporate Restructuring Committee yesterday
urged local creditors to reschedule Daewoo's debts as much
as possible through debt-to-equity swaps and convertible
bonds, which it said will help the group turn around,
enabling the creditors to recover their losses.  Experts
estimate that some 8 trillion won of debts must be swapped
for equity in order to keep the struggling Daewoo
affiliates afloat.  (Korea Herald  29-Oct-1999)

DAEWOO GROUP: Gov't considering court receivership
--------------------------------------------------
The government is considering seeking court receivership
for some of 12 affiliates of the ailing Daewoo Group under
the debt restructuring workout program for its revival,
should foreign creditors not cooperate with its
restructuring efforts.

One candidate up for court protection would be Daewoo
Corp., the conglomerate's trading and construction arm,
which, as a key channel of the group's financing, has the
largest amount of foreign loans, a government official
said.

"The ultimate goal for both domestic and foreign creditors
is to minimize the losses," a government official said.
"But in the event that foreign creditors don't cooperate
and disrupt the workout process, we can't help putting the
Daewoo affiliates in question under court receivership."

The plan to put the Daewoo affiliates under court
receivership is not tied with a decision in the Tokyo
meeting of foreign creditors yesterday, he said.

"So far foreign creditors are complying more or less with
the three-month debt freeze agreed upon among domestic
creditors on Aug. 25,'' he explained. So our decision
depends on how they will react after that."

According to government officials, 200 plus foreign
creditors have had outstanding loans of $5 billion to
Daewoo Group with $2.6 billion for Daewoo Corp. alone.
Foreign creditors' total debt of $5 billion accounts for
about one tenth of Daewoo's total debt.  Once a company is
put under court receivership, a freeze will be placed on
its obligations for up to six months. For the six months
under judicial protection, a decision will be made on
whether to revive or liquidate it.

Hypothetically, should the court decide to manage Daewoo
Corp., it would be free from financial obligations for six
months, the same effect as a standstill on the debt,
according to government officials.  However, according to
many financial sector observers, it is not likely that the
foreign creditors will go their separate ways and take
legal action in one form or another.

"Should they act out of conformity, it would put pressure
on us to liquidate Daewoo Corp. for example," one
government official said. "This would be a lose-lose
situation, considering the value of the firm would nose-
dive and therefore all creditors, both foreign and
domestic, would have to settle for a smaller share of the
pie."

According to domestic creditor banks, an audit of Daewoo
Corp. shows that the Daewoo affiliate, which has served as
key guarantor of loans extended to other sister companies,
had a total of 26.3 trillion won in debts, surpassing its
assets by 14.5 trillion won.  Facing this dismal financial
status, domestic creditor banks are said to find it
necessary to drop Daewoo Corp. out of the 12 Daewoo
affiliates under the revival-intended workout program and
liquidate it. However, the government has reportedly held
on to the original plan and has kept it alive.  (Korea
Times  28-Oct-1999)

SAMSUNG GROUP: Leaving auto business behind
-------------------------------------------
The Samsung Group yesterday declared a "complete"
withdrawal from the auto industry. A Samsung Motor official
said when the company is sold off, it will be a company
with no ties to the group.

"When the group decided to apply for court receivership,
instead of bank management, to rescue the insolvent auto
unit, it meant the group's washing its hands of the auto
business," said Hong Jong-man, CEO and court-appointed
manager of the company.  "The last thing that Samsung can
do is keep the plant running to help parts suppliers and
make it easier for the creditors to find a buyer," he said.

As regards the possibility of Samsung retaining a stake in
the auto firm after its sell-off to a foreign investor,
Hong said, "I have nothing to say about it because no such
offer has been made to Samsung."

He added, however, that a foreign auto company will hardly
want to give Samsung a stake because Samsung's involvement
will be a drag on its management of the company.  Samsung's
Pusan plant was allowed to operate for three months to use
up parts inventories held by its suppliers.

"Although we were allowed to produce 2,000 units a month
for a total of 6,000 units for the three-month period, we
can produce 4,000 units a month with the present work
force, if parts are supplied sufficiently."

Hong added Samsung officials will soon meet with Japanese
partners to secure parts.  (Korea Herald  29-Oct-1999)


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

MABUHAY PHILIPPINES SATELLITE: Holding debt rehab talks
-------------------------------------------------------
After the debt talks of mobile phone Pilipino Telephone
Corp., another unit of telecommunications giant Philippine
Long Distance Telephone Co. (PLDT) is holding talks with
creditor banks for the restructuring of its obligations.
Satellite company Mabuhay Philippines Satellite Corp.
expects to finish by yearend its negotiations with creditor
banks for the restructuring of its estimated 2.4-billion-
peso (US$60 million at PhP40.008:US$1) debt.

In an interview, Mabuhay president and chief executive
officer Gabriel Z. Pimentel said the company focuses
efforts primarily in working for the restructuring of its
debt, aside from marketing its satellite transponders.

"In order to turn the company around, we should be able to
lease more transponders and at the same time restructure
our debts, particularly lessen our interest expense," Mr.
Pimentel told BusinessWorld.

He added interest expense comprises the bulk of the
Mabuhay's operating expenses, roughly 70% of its total
operating expenditures. Mabuhay paid PhP370 million (US$9.2
million) in July for seven months of interest payments.
"(But) for the reduction in interest rates, I think we are
close towards achieving something there," Mr. Pimentel.

The Mabuhay executive, however, declined to reveal
repayment details, saying this is critical to ongoing
talks. vMabuhay and other PLDT subsidiaries such as Infocom
Technologies, Inc., Philippine Home Cable, Inc. and
satellite-based regional mobile telephone firm ACeS
Philippines Cellular Corp. will be primed for growth to
strengthen the company's hold in nontraditional telephony
services, PLDT president and chief executive officer Manuel
V. Pangilinan earlier announced.

PLDT is set to strengthen its subsidiaries to position the
company in the technology convergence which is seen to be
trend in the next few years. Also, losses from subsidiaries
impact to the telecom giant's bottom line, contributing to
as much as PhP1 billion (US$25 million) in losses in the
first half of 1999.

Mabuhay incurred debts during the construction and launch
of the $243-million Agila II satellite. The satellite is
the country's first Filipino-owned and -operated space
craft, which has a carrying capacity of 54 transponders for
broadcast and communications use. However, Mr. Pimentel
said Agila's launch was a classic case of bad timing as it
was launched at the height of the Asian crisis.

The Mabuhay consortium successfully launched Agila II into
orbit in August 1997 and its services were made
commercially available four months later.

"The cost of constructing and launching the satellite was
not recovered by operations. When the company started the
satellite service, the problems in the market was beginning
to be seen and the demand for capacity and hookup fell
sharply," Mr. Pimentel said.  (Business World  28-Oct-1999)

NEGROS NAVIGATION CO.: Posts nine-month loss
--------------------------------------------
Listed shipping firm Negros Navigation Co., Inc. (Nenaco)
posted a net loss of 343.87 million Philippine pesos
(US$8.6 million at PhP40.008:US$1) for the first nine
months of the year due to higher operating expenses and
interest charges from the PhP307.64-million (US$7.7
million) net loss reported the previous year.

Unaudited financial statements furnished BusinessWorld
showed the shipping company posted an operating loss of
PhP116 million (US$2.9 million) as its operating expense,
which is at PhP1.52 billion (US$38 million) exceeds its
total revenues of PhP1.40 billion (US$35 million).
Financing charges is placed at PhP295 million (US$7.4
million) from net cash from financing activities worth
PhP123.8 million (US$3.09 million).

An analyst interviewed by BusinessWorld said Nenaco's loss
can be attributed to government indecision of fare
adjustment requests by interisland shipping companies as
well as rising fuel cost.

"It (the net loss) can be a combination of decline in
passengers and also the fact that shipping companies are
not able to immediately adjust fares despite increase in
fuel prices," the analyst said.

The 10.88% increase in domestic shipping freight and
passenger fare charges is still awaiting the go-ahead of
President Joseph Estrada. Shipping companies last adjusted
fares in March 1997.  (Business World  28-Oct-1999)

UNIWIDE GROUP: Cavite asset could reduce debt
---------------------------------------------
Debt-laden Uniwide Group of Companies' 133-hectare Uniwide
Sales-Coastal City in Naic, Cavite, may just help bring
down the company's estimated 11.1-billion-peso (US$277.4
million at PhP40.008:US$1) debt.

If sold or used as payment, the Cavite property has been
appraised to bring in some PhP2.73 billion (US$68.2
million) for the cash-strapped Gow-owned group of
companies.  An appraisal report recently filed by the
Cuervo Appraisers, Inc. with the Securities and Exchange
Commission (SEC) said the "highest price which the Cavite
property will bring if exposed for sale in the open market
is PhP2.73 billion."

The Cavite property is composed of 117 commercial
subdivision lots, 605 residential subdivision lots, one
block amusement park, one block commercial complex and 33
undeveloped lots registered under Uniwide affiliate Uniwide
Sales Realty and Resources Corp.  The Cuervo report said
the commercial and residential subdivision is fully
developed with cemented roadways and underground drainage
systems, while the commercial and amusement areas have yet
to be developed.

"Based upon an analysis of the property itself and the
prevailing land usage in the neighborhood, we are of the
opinion that a mixed residential, commercial and
recreational (amusement park) utility would represent the
highest and best use of the property," Cuervo Appraisers
said.

Under Uniwide's rehabilitation plan, a number of commercial
and residential lots located within the Naic property have
already been earmarked as payment for debts.  Among the
creditor banks to receive portions of the Cavite property
are International Exchange Bank, Equitable Banking Corp.,
Asian Bank Corp. and United Coconut Planters Bank.

The Uniwide group stopped development of the Naic property
when it faced liquidity problems as a result of the
economic contagion that badly hit the country's property
sector.  The realty business of the Uniwide group, after
the debt-asset swap, will be left with just the operating
assets necessary for the group's retail business.

Under the proposed rehabilitation plan, Uniwide will focus
on the rehabilitation of its remaining Coastal Mall,
leaving other land development projects (not used as
payment for debts) for possible joint venture arrangements
with interested parties.  (Business World  28-Oct-1999)


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

PT CHAREON POKPHAND INDONESIA: Signs rehab agreement
----------------------------------------------------
PT Charoen Pokphand Indonesia, a unit of Charoen Pokphand
Group, Thailand's largest producer of animal feed, has
signed a $190 million debt restructuring agreement with 26
creditors.

Harry Sustanto, a vice president at Charoen Pokphand
Indonesia, said the company will pay 17.5 percent of the
debt on Friday, 2.5 percent on December 22, and another 15
percent next year. The remainder will be repaid at a later
date. The interest rate would be 250 basis points above the
Singapore interbank offered rate (SIBOR).

"We can now focus on raising production and developing our
core business," Sustanto said.

The creditors include Bank Brussels Lambert, Citibank and
American Express Bank.  This is the third debt
restructuring by an Indonesian unit of CP: Last month, PT
Surya Hidup Satwa restructured $32 million debt and PT
Central Proteina Prima restructured $131.5 million, a
Bangkok daily newspaper reported Animal feed companies were
among the first hit by the collapse of the rupiah in 1997
that caused the price of their products to soar.

The CP group, controlled by the Chearavanont family is one
of Thailand's richest families, includes Pokphand Feedmill,
Thailand's biggest animal feed producer, TelecomAsia, the
country's only private fixed-line phone operator in
Bangkok, and Vinythai, one of Thailand's two producers of
polyvinyl chloride. Chareon Pokphand's shares were recently
unchanged at 1,650 rupiah a share.  (Bloomberg, Business
Day  28-Oct-1999)

SIAM CEMENT: Posts 3rd quarter loss
----------------------------------
Thailand's largest industrial company, Siam Cement,
reported a loss in the third quarter, as expected, because
a weaker baht magnified foreign debt.  Siam Cement, which
makes building materials, chemicals, tyres and paper, lost
9.35B baht in the three months to September 30.  The
company actually had an operating profit in the period of
1.76B baht.

SIAM CEMENT: To take some reorganization steps
----------------------------------------------
Siam Cement, one of Thailand's largest industrial
conglomerates, will boost investment in its main businesses
and is moving to discard non-core businesses in three
years.

The firm is preparing to invest an additional 6.86 billion
baht in petrochemical businesses while selling 12 non-core
assets after completing the sale of its interests in six
affiliates last year.

Apiporn Pasawat, president of CementThai Chemicals Co, one
of the flagship firms of Siam Cement, yesterday revealed
the strategy as the group posted a net loss of 9.35 billion
baht in the third quarter after foreign exchange losses
devoured earnings.  According to Mr Apiporn, the planned
new investment will go toward expanding the annual
production capacity at its Rayong olefins facility by 37%,
to 1.12 million tonnes from 800,000 tonnes at present.

The investment in its world-class olefins complex is aimed
at cashing in on the major rebound in the petrochemical
industries expected in 2002-2003. At that time, the olefins
price is expected to soar to US$1,200 a tonne, from $800 a
tonne now. The current price is already 60% higher than the
level quoted early this year.  The expansion would reduce
fixed costs for production at the Rayong facility by 10%,
he said.

Aside from the expected market recovery, Mr Apiporn said
now was probably the best time to negotiate the most
favourable deal with suppliers of machinery and equipment,
while the loan interest is at a record low.  Siam Cement
president Chumpol NaLamlieng said the group made an
operating profit in the third quarter of 1.76 billion baht
because of lower interest rates and sales increases. The
figures were affected by a foreign exchange loss of 11.12
billion baht.

The net loss in the third quarter compares with a 3.38-
billion-baht net profit in the second quarter this year.
Its outstanding foreign debt, much of which is unhedged, is
around US$3.2 billion, making it highly vulnerable to
exchange rate fluctuations, according to AFP.  For the
first nine months of the year the group recorded a net loss
of 7.13 billion baht, compared with a profit for the same
period last year of 17.5 billion baht.

Analysts interviewed by AFP said that the losses reflected
a weakened Thai currency which has been trading in the
range of 38 to 40 to the dollar in recent months compared
with around 36 to 37 for much of last year.  (Bangkok Post  
28-Oct-1999)

SIAM STEEL INT'L.: Cancels annual meeting, reorg ahead
------------------------------------------------------
Siam Steel International Plc informed its planner, South
Sathorn Planner Co Ltd, to cancel the annual general
meeting slated for tomorrow because the company is subject
to business reorganisation under bankruptcy laws.  (The
Nation  28-Oct-1999)

SUPALAI PLC: To complete rehab agreement by year-end
----------------------------------------------------
Supalai Plc, a listed property developer, expects to sign a
Bt6 billion debt restructuring contract with 10 creditors
by the end of this year, the company's vice president Atip
Bichanont said yesterday.

Atip said creditors controlling 80 per cent of the
company's outstanding debts had already agreed in principal
to the plan.  Siam Commercial Bank is the company's largest
creditor.

Its debt restructuring plan is involves a 20 debt trim,
equity and asset swaps, and repayment period rescheduling.
As part of the plan, the company will issue 425 capital
increasing shares to its creditors, who would take a 5 to 7
per cent stake in Bt1 billion of Supalai Plc's capital
after the debt restructuring was completed.  The property
developer's debt burden will decline significantly. Its
projected debt to equity ratio will drop from 6:1 to 2.5:1.

With the continuing slump in property market, the company
would concentrate on selling its existing assets and delay
making new investments, Atip said.  Supalai Plc would soon
sell its 300-unit Supalai Buri condominium project worth
Bt200 million to an unnamed buyer. The proceeds from the
sale would be recorded in its last quarter financial
results, Atip said.

The company would receive about Bt1.5 billion per year from
the sale of its existing projects. These include a
condominium in Supalai Park on Phaholyothin Road, detached
houses in Supalai Thani and Supalai Buri and a number of
plots of land.  The company would receive up to Bt500
million from sales in the last quarter of the year, but it
would still record a net loss, he said.

Sales of Supalai Plc assets in the first three quarters of
this year amounted to a Bt1 billion.  Although the property
sector is still suffering, Atip said the market would be
begin to improve in the second quarter, especially in the
detached house market, as previous stock had been sold.
(The Nation  28-Oct-1999)

SUPALAI PLC: To sell assets to speed up restructuring
-----------------------------------------------------
Listed developer Supalai Plc is trying to sell its finished
projects, either wholesale or retail, for cash to repay
creditors and speed up restructuring of its six-billion-
baht debt.

Deputy managing director Atip Bijanonda said that the
company has stocks of 700 condominium units, 50 detached
houses, 60-70 townhouses and 15-20 duplexes in Bangkok.
The company was close to selling five eight-storey
condominium buildings totalling 300 units at Supalai Buri
housing estate in Rangsit for more than 200 million baht.
The agreement was expected to be signed next month to turn
the units into welfare housing run by state agencies, he
said.

Mr Atip said two pending projects to be sold wholesale were
a condominium at Supalai Park Project near Central Plaza
Lat Phrao and an office building on Rama III Road. Prices
were being negotiated.  Supalai's biggest local creditor is
Siam Commercial Bank, followed by the Assets Management
Corporation.

This year Supalai has set a total sales target of 1.5
billion baht and is trying to clear finished units at
Supalai Park Condominium by offering discounts, interest
incentives and guaranteed rents.  Located on 10 rai,
Supalai Park comprises three condominium blocks totalling
1,800 units. The first and the second blocks are finished
and the third is to be sold wholesale.  (Bangkok Post  28-
Oct-1999)

TOTAL ACCESS COMMUNICATION: To begin debt rehab talks      
-----------------------------------------------------        
Total Access Communication Plc says it will begin talks
with its 50 creditors to reschedule its 40-billion-baht
debt next year. TAC, the Singapore-listed mobile phone
operator, is also seeking a strategic partner to hold a 20-
25% stake in the company.

TAC vice-president Thana Thienachariya said the company was
considering the appointment of a financial adviser to
supervise its debt restructuring plan.  The firm has
outstanding debts in foreign currencies totalling US$993
million. Of that figure, $343 million was borrowed from 50
creditor banks in Europe, the US and Asia. The debts are
due in 2004.

About $250 million was borrowed in the form of euro
convertible bonds, due in 2001. The balance of $400 million
was in the form of yankee bonds, of which $300 million,
with a maturity of 10 years, is due in 2006. The remaining
$100 million, with five-year maturities, is due in 2001.

"We plan to begin talks with all creditors in mid-2000 to
extend the repayment period," Mr Thana said. But he
declined to elaborate on the timeframe and the amount to be
refinanced.

However, he said negotiations would enable TAC to
reschedule its existing terms of debt repayment. The
company would be able to select a financial adviser to
draft a debt rescheduling plan early next year.  Mr Thana
said that from July last year, TAC could pay $190 million a
year in principal although the company is required by
creditors to pay only principal of $20 million a year.

The company paid interest of about $6 million per month at
an annual interest rate of 8%, or equal to more than two
billion baht a year, he said. Last year, TAC earned about
12 billion baht in revenue with a profit of two billion
baht. Mr Thana said TAC would be able to repay its 40-
billion-baht debt within five to six years. Last year,
creditors granted TAC a six-year extension on loans worth
$537 million.

Meanwhile, Nopadol Thongprasert, executive vice-president
of United Communication Industry Plc, denied that TAC would
allow Telenor of Norway to take a stake in the company. The
report was based on a statement by a Telenor executive who
announced that Telenor proposed to acquire a stake of up to
40% in the venture. Mr Noppadol said it would be impossible
to allow a partner to have so large a stake, but TAC was
talking with Telenor and other foreign companies.  (Bangkok
Post  28-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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