TCRAP_Public/991101.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

            Monday, November 1, 1999, Vol. 2, No. 212

                            Headlines


* C H I N A  &  H O N G  K O N G *

CHINA ELEGANCE INT'L.: Posts annual loss
CHUN TAI TOYS (CHINA) CO.: Facing winding up petition
FORTUNE OIL: Posts first-half loss as Y2K problems loom
GIANTON COMPANY: Facing winding up petition
KONSUN INTERNATIONAL LTD.: Facing winding up petition
OCEAN IMPORTERS & EXPORTERS: Facing winding up petition
SAM TAT LEATHER GOODS: Facing winding up petition
WINGER ELECTRONIC FACTORY: Facing winding up petition
WONDERFUL PALANCE LTD.: Facing winding up petition
ZHEJIANG SYNTHETIC UNITED: Closes debt-for-equity swap


* J A P A N *

HYOGO PREFECTURE: Going under gov't control after losses
OKI ELECTRIC INDUSTRY: Posts lower six-month loss
SEIYO CORP.: May get bailout from Seibu Dept. Stores


* K O R E A *

DAEHAN INVESTMENT TRUST: Gov't funds infusion near
DAEWOO GROUP: Workout plans for 4 units revealed
DAEWOO GROUP: Negotiations with foreign creds. to continue
DONGAH INS.: Awaiting funds injection by KDIC
DOOWON INS.: Awaiting funds injection by KDIC
HANDUK INS.: Awaiting funds injection by KDIC
HYUNDAI ELECTRONICS: To use rights issue to reduce debts
JOSUN INS.: Awaiting funds injection by KDIC
KOREA INVESTMENT TRUST: Gov't funds infusion near
KUKMIN INS.: Awaiting funds injection by KDIC
PACIFIC LIFE INS.: Awaiting funds injection by KDIC


* M A L A Y S I A *

MALAYSIAN RESOURCES CORP.: Posts larger annual net loss
TECHNOLOGY RESOURCES INDUS.: Holding breath on coupon bonds


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

ABN AMRO ASIA SECURITIES: SEC to discipline
ALL ASIA SECURITIES MGMT. CORP.: SEC to discipline
DBP DAIWA SECURITIES: SEC to discipline
FORTUNE TOBACCO: Gov't may try to settle out of court
ING BARING SECURITIES: SEC to discipline
JARDINE FLEMING EXCHANGE CAPITAL: SEC to discipline
PCCI SECURITIES BROKERS: SEC to discipline
PHILIPPINE AIRLINES: Bracing for loss of gov't protection
PRYCE SECURITIES: SEC to discipline
WORLDSEC INTERNATIONAL SECURITIES: SEC to discipline


* S I N G A P O R E *

GOLDTRON: Creditors reviewing draft of restructure
LIM KAH NGAM: Creditors reviewing draft of restructure
L&M GROUP: Creditors reviewing draft of restructure
THAKRAL CORP.: Taking preliminary steps for restructure


* T H A I L A N D *

INTERNATIONAL ENGINEERING: SET orders loan guarantee report
KR PRECISION PLC: Recapitalizing to shrink debt, investing
LAND & HOUSES: Restructure includes 7-year debt rollover
NATIONAL FERTILISER PLC: Reaches debt rehab with 4 banks
THANARA CO. LTD.: Completes asset-for-debt swap


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

CHINA ELEGANCE INT'L.: Posts annual loss
----------------------------------------
Leather fashion manufacturer China Elegance International
Fashion has reported a net loss of $206M for the year ended
March 31.  The company had made three share placements in
the period, raising $37.8M in net proceeds to reduce debt.
The chairman, Cheung Ngan said that the fourth quarter is
seeing slightly more orders but profits are expected to be
lean due to demand for cheaper prices.

CHUN TAI TOYS (CHINA) CO.: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 22 on the petition of Karin Electronic Supplies
Company Limited for the winding up of Chun Tai Toys (China)
Company Limited. A notice of legal appearance must be filed
on or before December 21.

FORTUNE OIL: Posts first-half loss as Y2K problems loom
-------------------------------------------------------
Fortune Oil posted an interim first-half loss, while
warning its shareholders that it cannot guarantee an escape
from Y2K computer problems either.

The oil trading and infrastructure company, which is listed
in London but does all its business in the mainland, said
its extensive dealings with traders and its mainland joint
ventures could be affected.

"The group trades with a large number of counter-parties
and whilst efforts have been made to check their year 2000
compliance, there can be no assurance that such counter-
parties may not suffer disruption that affects the group's
business," Fortune said.  "Similarly the group has a number
of joint ventures which are important to the group's
business . . . however there can be no assurance that the
businesses of the joint ventures may not suffer
disruption."

Fortune has already suffered a sharp deterioration in the
group's performance which resulted in the dismissal of
chief executive Barry Cheung Chun-yuen.  The company made
the Y2K warning as it unveiled its interim results to June
30.  Turnover was down sharply to 65.1 million (about
HK$829.15 million), from 183.9 million in the same period
last year.  Fortune made a pre-tax loss of 960,000,
against profits of 2.05 million in the previous year's
first half.

The group has been badly hit by a sharp rise in overdue
trade accounts and by Beijing's ban on diesel and petrol
imports. But new chief executive Richard Wong Shiu-ki said
Fortune was undergoing an overhaul to focus on oil-trading
and infrastructure.

"Costs have been reduced significantly, the riskier parts
of our trading business have been eliminated, and we can
now focus with confidence on infrastructure projects that
offer significant long-term potential for growth," he said.

Cost-savings of 2.5 million on an annualised basis had
been achieved, the company said, and it had completed the
disposal of a trading joint venture.  Fortune also reported
that China National Petroleum, the mainland's largest oil
group, was to take a controlling 45 per cent stake in
Fortune's West Zhuhai Oil Products Terminal and Oil Storage
Facility.  The deal should boost the facility's performance
and make it "the most used oil product terminal in southern
China", Fortune said.

Fortune said it would retain an 18 per cent stake and that
the terminal was already seeing increased throughput since
the deal. The group has also sold its branded lubricants
business, although it has retained the Fortune name, which
it said gave it scope for re-entering the business at a
later date.  The company said it had also received
expressions of interest from mainland and multinational oil
companies, to operate the group's network of petrol
stations.  Turnover in the trading business plunged to
33.7 million, from 174.4 million, although the company
believes there are signs that crude-oil imports to the
mainland will increase in the second half of the year.
(South China Morning Post  30-Oct-1999)

GIANTON COMPANY: Facing winding up petition
-------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
November 17 on the petition of Leung Mo Ping for the
winding up of Gianton Company Limited. A notice of legal
appearance must be filed on or before November 16.

KONSUN INTERNATIONAL LTD.: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
November 17 on the petition of CWF Piling & Civil
Engineering Co. Limited for the winding up of Konsun
International Limited. A notice of legal appearance must be
filed on or before November 16.

OCEAN IMPORTERS & EXPORTERS: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 15 on the petition of Lee Kwok Wah for the winding
up of Ocean Importers & Exporters Company Limited. A notice
of legal appearance must be filed on or before December 14.

SAM TAT LEATHER GOODS: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
November 10 on the petition of Orient Legend Investment
Limited and Orient Global Investment Limited for the
winding up of Sam Tat Leather Goods (Hong Kong) Limited. A
notice of legal appearance must be filed on or before
November 9.

WINGER ELECTRONIC FACTORY: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 15 on the petition of Chu Yuen Pui for the winding
up of Winger Electronic Factory Limited. A notice of legal
appearance must be filed on or before December 14.

WONDERFUL PALANCE LTD.: Facing winding up petition
--------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 15 on the petition of Ju Kwun Kau for the winding
up of Wonderful Palace Limited. A notice of legal
appearance must be filed on or before December 14.

ZHEJIANG SYNTHETIC UNITED: Closes debt-for-equity swap
------------------------------------------------------
Three of the mainland's new asset-management companies
(AMCs) and a state bank have combined to trade more than
700 million yuan (HK$653.5 million) worth of debt for
equity in a polythene plant in Zhejiang province.

China Oriental, China Cinda, China Huarong Trust and
Investment and the China Development Bank are swapping
723.48 million yuan of debt in Zhejiang Synthetic United
Group for 70 per cent of the company's stock.  The deal,
signed in Beijing on Thursday, represents the biggest debt-
for-equity swap since the government launched the plan in
April as a significant initiative to turn around ailing
state companies, and it is the first involving four
separate creditors working together.

Each of the four leading state banks has set up an AMC to
take over companies' bad debts.  The swap will reduce
Zhejiang Synthetic's debt burden from 94.3 per cent of
assets to 45 per cent, the China Business Times reported
yesterday. It will also cut the firm's annual debt payments
by 45 million yuan.

The deal involves restructuring the company and splitting
the production and non-production assets, with the local
government taking over the workforce and assets of the
latter. This aims to turn the production part into a viable
entity.  Zhejiang Synthetic was set up in 1993 with
investment from the China Development Bank and two state
firms in Shaoxing to produce polyester. The costs of
construction and equipment created a debt burden it could
not pay.

After lengthy deliberations with its creditors, the firm
decided on the swap as the best way to create a new, viable
company. As a result, it expects to turn a profit this
year.  China Orient, whose share of the deal is 491.88
million yuan, is the AMC set up by the Bank of China. China
Cinda, whose share is 88 million, was set up by the China
Construction Bank and China Huarong, whose share is 18.6
million, by the Industrial and Commercial Bank of China.
The China Development Bank's share is 125 million.  (South
China Morning Post  30-Oct-1999)


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

HYOGO PREFECTURE: Going under gov't control after losses
--------------------------------------------------------
A small financial institution in Hyogo Prefecture will be
placed under local government control following its plea
for help after suffering huge losses on so-called Princeton
bonds, the local government announced Friday.

Kita Hyogo Credit Cooperative spent 2.7 billion yen on the
bonds issued by Princeton Economics International of the
United States and asked the Hyogo prefectural government
for help Thursday as the bonds have turned out to be
worthless.  (Kyodo News, NewsHound  30-Oct-1999)

OKI ELECTRIC INDUSTRY: Posts lower six-month loss
-------------------------------------------------
Oki Electric Industry, Japan's leading communications
equipment manufacturer reported that its parent sharply
reduced losses in the 6 months to September through
restructuring.  Net losses fell to 2.2B yen in the period
from a loss of 22.2B yen a year earlier.  Pretax losses
dropped to 5.7B yen from 24.8B yen. Revenue slipped 2.8% to
208.3B yen.

SEIYO CORP.: May get bailout from Seibu Dept. Stores
----------------------------------------------------
Seibu Department Stores Ltd. is considering selling some of
its own shares to raise funds for a bailout of Seiyo Corp.,
a financially troubled real-estate developer of the Saison
business group co-led by Seibu and supermarket chain
operator Seiyu Ltd., industry sources said Friday.

The major department store operator plans to sell its own
shares to other companies in the Saison group at around
1,100 yen per share, the sources said.  Seibu stock is
unlisted.

With the fund-raising scheme, Saison will ask creditor
banks to forgive claims on loans to Seiyo, which is
struggling under interest-bearing debts of some 400 billion
yen as a result of the aggressive development of golf
courses and resorts during the asset-inflated bubble
economy of the late 1980s.  Seibu, which has issued 138
million shares and owns 43%, or 59.47 million, of them, is
in final talks with other group companies on the plan, the
sources said.  However, it is premature to say whether
Seibu will win the nod from the other companies, they said.

Seiyo was established in 1949 and has capital of 34.8
billion yen. Since 1995, it has been implementing a
rehabilitation plan under an agreement with creditor banks
to cut interest rates on its loans.  The Saison group also
includes Yoshinoya D and C Co., a fast-food chain operator,
and Saison Life Insurance Co.  (Kyodo News, NewsHound  30-
Oct-1999)


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

DAEHAN INVESTMENT TRUST: Gov't funds infusion near
KOREA INVESTMENT TRUST: Gov't funds infusion near
--------------------------------------------------
The government is expected to inject approximately W3.4
trillion into the ailing finance firms, Korea Investment
Trust and Daehan Investment Trust.

A high-ranking official at the Ministry of Finance and
Economy said Thursday, the money will be divided between
the two companies with W2.3 trillion alloted to Korea
Investment Trust and W 1.1 trillion going to Daehan. The
official added that the ministry plans to announce a major
policy to calm the fluctuating financial markets including
plans to normalize management of the two investment trust
firms.

The government said W1.5 trillion of the total rescue fund
will be from public funds. This amount will be raised
through sell-offs of government-held shares at the
Industrial Bank of Korea and Housing and Commercial Bank.
(Digital ChosunIlbo  28-Oct-1999)

DAEWOO GROUP: Workout plans for 4 units revealed
------------------------------------------------
Steering committees representing creditors of four Daewoo
Group units yesterday decided to provide them with debt-
relief steps to keep them afloat.  The four units of the
troubled conglomerate are Ssangyong Motor Co., Daewoo
Electronic Components Co., Orion Electric Co. and Keangnam
Enterprise Ltd.

Creditors of Ssangyong Motor decided to convert its debts
of 130 billion won ($107 million) into common stock
equivalent to a 53 percent stake, said Cho Hung Bank, which
has been charged with drawing up a workout program for the
carmaker.  Before the debt-for-equity swap, the creditors
will reduce the carmaker's shareholder capital at a rate of
3 to 1 and postpone the repayment of an additional 1.6
trillion won in debts until December next year, Cho Hung
said.

The creditors will also cut the interest on 1.6 trillion
won by between 1 and 4 percent and provide Ssanyong Motor
with $240 million in trade finance.  In addition, the
creditors will seek to sell off the company to a third
party by the end of next year, Cho Hung said. A recent due
diligence study found that Ssangyong Motor has assets of
2.76 trillion won, while its liabilities amount to 3.09
trillion won.

The steering committee of Keangnam Enterprise agreed to
swap its 170 billion won debt for equity, said Korea
Exchange Bank (KEB), Keangnam's main creditor bank.
Keangnam's creditors will swap its remaining debt for
convertible bonds and provide the company with interest
cuts, the bank said.  Keangnam's liabilities outweigh its
assets by 70.5 billion won.  The KEB said no debt-for-
equity conversion will be granted to Orion Electric which
was found to have assets exceeding its liabilities.

Instead, Orion's creditors will lower the interest on its
debt by between 1 and 3 percent, the bank said. Orion was
found to have assets of 1.89 trillion won and liabilities
of 1.71 trillion won.

The steering committee of Daewoo Electronic Components will
push ahead with the spin off of the company from the Daewoo
Group and sell it off, its main creditor Hanvit Bank said.
The company's creditors will delay the repayment of 63
billion won in debts to bank and non-bank financial
institutions until the end of 2001, Hanvit said.  Daewoo
Electronic Components has assets of 365 billion won and
liabilities of 292.6 billion won, the bank said.

Creditors of the four Daewoo units will meet over the next
few days to finalize debt-workout programs. The four are
among Daewoo's 12 subsidiaries placed under rehabilitation
plans.  Meanwhile, a government official said yesterday
that final debt-workout plans for Daewoo's four flagships -
Daewoo Corp., Daewoo Motor Co., Daewoo Electronics Co. and
Daewoo Heavy Industries Ltd. - will emerge two to three
weeks later than scheduled.

The delay is necessary to calculate the exact ratio of
debts to be rescheduled, which Daewoo's foreign creditors
have been calling for, the official said.  The debts of the
four Daewoo units amount to 49.67 trillion won, or 83
percent of the conglomerate's total liabilities.  (Korea
Herald  30-Oct-1999)

DAEWOO GROUP: Negotiations with foreign creds. to continue
----------------------------------------------------------
Negotiations between the Daewoo Group and its foreign
creditors on a debt moratorium will continue despite their
failure to reach an accord at the Thursday meeting in
Tokyo, Finance and Economy Minister Kang Bong-kyun said
yesterday.

During a speech at the Korea International Trade
Association (KITA), Kang said the negotiations will take
time. He said Daewoo's Korean creditors will go ahead with
their debt-workout plans for the group's units as scheduled
without the participation of foreign creditors.  While
rejecting the group's request for a repayment freeze,
foreign creditors at the meeting demanded "a more positive
role (in the workout process) than that of a non-voting
observer," which is taken by Korean creditors as meaning
that foreign creditors want the right to veto the workout
plans to be implemented. (Korea Herald  30-Oct-1999)

DONGAH INS.: Awaiting funds injection by KDIC
DOOWON INS.: Awaiting funds injection by KDIC
HANDUK INS.: Awaiting funds injection by KDIC
JOSUN INS.: Awaiting funds injection by KDIC
KUKMIN INS.: Awaiting funds injection by KDIC
PACIFIC LIFE INS.: Awaiting funds injection by KDIC
---------------------------------------------------
The government began preparations for the injection of
public funds into six ailing life insurance firms.

On Friday, the Financial Supervisory Commission (FSC)
declared three life insurance firms, Kukmin, Pacific Life,
and Doowon, as non-viable financial institutions and
ordered them to reduce their outstanding capital to nil.
The Korea Deposit Insurance Corp. was asked to inject W30
billion into each of the three firms.

Three other companies, Dongah, Handuk, and Josun, are also
following steps for the public fund injection. One official
at FSC said the government rescue measure was taken in
anticipation that losses at the firms could snowball due to
the persistence of their poor financial status.  (Digital
ChosunIlbo  29-Oct-1999)

HYUNDAI ELECTRONICS: To use rights issue to reduce debts
--------------------------------------------------------
The electronics arm of South Korea's giant Hyundai group
yesterday announced a US$602-million rights issue as
conglomerates stepped up a fund-raising campaign to reduce
their huge debts.

Hyundai Electronics Industries said the offering of new
shares was aimed at reducing its debt-to-equity ratio from
300 percent currently to a government-set target of 200
percent by the end of the year.

"Proceeds from the new rights issue will be used to reduce
our debt," a Hyundai Electronics spokesman said of the 725
billion won ($602 million) offering.

The company has already raised over four trillion won so
far this year to repay its debt estimated at 15 trillion
won.  Hyundai Electronics is not the only unit of the giant
family-controlled conglomerate to resort to equity issues
aimed at reducing debt levels.  On the back of a stock
market boom this year, the group's 16 subsidiaries have
raised some 6.3 trillion won through local equity issues,
or 56 percent of its year-end target of 11.2 trillion won.

But the price was enormous. The group has pawned an array
of family jewels including internal reserves and dollar
deposits to repay debts, which stood at 64.9 trillion won
in June, according to government accounts.

"We are selling everything to meet the target," Lee Kyu-
Taek of the group's restructuring team, said, conceding the
government's demand was too tough to meet.

Hyundai has raised the largest amount of equity funds among
South Korean's leading conglomerates.  The Korea Economic
Daily estimated total equity issues and other funds raised
by listed firms in the first nine months to September at 37
trillion won, or 8.1 percent of last year's gross domestic
product.

The daily warned the rush of rampant equity funds would
seriously disturb a financial market already unsettled by
Daewoo's debt problems.  Hyundai, the country's largest
conglomerate, or chaebol, stepped up its efforts to raise
cash after the rival Daewoo Group was placed under a
government program to dismantle it.

Some foreign bankers here have also expressed concern over
the fate of Hyundai's overseas debt in the light of the
Daewoo debacle.  Daewoo's troubles prompted foreign banks
to reduce their exposure to South Korean corporations which
have been under pressure to reduce the power of autocratic
managements and speed up corporate reforms.

And a recent stock market setback caused by Daewoo's
crumbling sparked worries over Hyundai's ability to meet
the target. But Hyundai, armed with many cash cows, set
itself apart from Daewoo.  Hyundai kicked off an
international roadshow in Hong Kong last Monday to reassure
overseas investors there before moving on to other
locations like Singapore, London, Frankfurt, New York and
Boston.  (Business Day  29-Oct-1999)


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

MALAYSIAN RESOURCES CORP.: Posts larger annual net loss
-------------------------------------------------------
Malaysian Resources Corp Bhd (MRCB) has reported a sharply
higher group pre-tax loss of RM1.4bil for the financial
year ended Aug 31, 1999, compared with a pre-tax loss of
RM203.5mil the year before.

Group turnover was 65.4% lower at RM235.3mil, against
RM680.4mil previously.  A statement from MRCB yesterday
attributed the higher loss mainly to the group's provision
for its RM1bil investment in Rashid Hussain Bhd (RHB), in
line with the new management team's policy of transparency
and good corporate governance.

At the operating level, the group incurred a loss of
RM89.7mil before interest, depreciation, amortisation and
exceptional items.  The statement said the group's reduced
turnover was principally due to the completion of
construction works in power-related projects during the
previous year, an absence of further contributions
following the sale of operations and maintenance of power
plant subsidiary Teknik Janakuasa Sdn Bhd, and reduced
activities in the property and construction sectors.

"The financial performance of the group also continued to
be affected by high gearing and foreign exchange losses,"
the statement said.  MRCB said that despite the sluggish
economy during the year under review, and the revaluation
of its holdings, "the revenue and asset base of the group
still remain strong and the group is able to meet all its
obligations and has sufficient reserves for future
dvelopment."

The loss was posted nonetheless despite two associated
companies posting profits. Malakoff Bhd reported a 61.4%
jump in group after-tax profit to RM373.1mil for the year
to Aug 31, from RM231.2 the previous year.  The improved
profit was due mainly to higher contribution from Teknik
Janakuasa, full recognition of income from the Desa Kilat
Sdn Bhd land reclamation project, a much improved
performance in its investments and the effect of the tax
waiver in 1999.

Another MRCB associate company, New Straits Times Press (M)
Bhd (NSTP), made a turnaround to register a pre-tax profit
of RM75.8mil for the year ended Aug 31, after incurring a
loss of RM59.8mil in the previous year.  Turnover, however,
declined by 11% due to cut-backs in spending by
advertisers.

MRCB also said its unit Sistem Televisyen Malaysia Bhd
(TV3) had incurred a RM293.5mil loss for the year to
August. However, it was able to report an operating profit
before interest, depreciation, amortisation and exceptional
items of RM15.2mil.  (Star Online  30-Oct-1999)

TECHNOLOGY RESOURCES INDUS.: Holding breath on coupon bonds
-----------------------------------------------------------
Technology Resources Industries Bhd (TRI) said it has not
redeemed any of its US$200mil zero coupon bonds which are
due for early redemption yesterday, though some of its zero
coupon bondholders had exercised their put-option for
redemption by TRI at 148.6733% of the principal amount
totalling US$272.072mil, reported AFX-Asia.

It has another tranche of bonds, US$175mil 2.75% coupon
bonds, which will fall for early redemption next month.
TRI said it had not redeemed any of the zero coupon bonds
nor placed any funds with the paying agent for a bond
redemption on behalf of TRI.

"The company is presently negotiating to restructure the
bonds for new terms and conditions. We believe that the
matter could be resolved amicably."

A default will occur if TRI fails to pay either the
principal, premium, or the interest on any of the zero
coupon bonds when the same shall become due and payable on
Nov 5, 1999.  TRI said it would continue with negotiations
to restructure the bonds for new terms and conditions. It,
however, said that despite the potential default, the
business and operations of the group had not been affected.

Such a default will cause a technical default on some of
the credit facilities obtained by TRI and the group, as
well as the second tranche of euro bonds.  The defaults,
which cover credit facilities and the euro bonds, total
RM1.38bil in principal and US$238.157mil, respectively.

"TRI is currently in communication with the respective
lenders," the statement said.

Meanwhile, Tan Sri Tajudin Ramli said in a separate
statement yesterday that TRI was negotiating with the
bondholders to restructure the bonds on new terms and
conditions.

"We believe that we can reach a settlement accepted by the
company and the bondholders," he said in the statement.
"I wish to reassure you that this issue has not and will
not affect our business and operations wither at TRI or
Celcom at all."

Tajudin said Celcom, TRI's main subsidiary and Malaysia's
premier communications company, will continue to provide
only the best service.  (Star Online  30-Oct-1999)


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

ABN AMRO ASIA SECURITIES: SEC to discipline
ALL ASIA SECURITIES MGMT. CORP.: SEC to discipline
DBP DAIWA SECURITIES: SEC to discipline
ING BARING SECURITIES: SEC to discipline
JARDINE FLEMING EXCHANGE CAPITAL: SEC to discipline
PCCI SECURITIES BROKERS: SEC to discipline
PRYCE SECURITIES: SEC to discipline
WORLDSEC INTERNATIONAL SECURITIES: SEC to discipline
----------------------------------------------------
The Securities and Exchange Commission plans to penalize
the brokerage houses found to have violated the rules on
special block sales.

The brokerages involved were ABN Amro Asia Securities, All
Asia Securities Management Corp., DBP Daiwa Securities, ING
Baring Securities, Jardine Fleming Exchange Capital Inc.,
PCCI Securities Brokers Inc., Pryce Securities Inc., and
Worldsec International Securities.

An official says the SEC has rejected a recommendation of
its Brokers and Exchanges Department to absolve the brokers
because these did not violate the rules deliberately. He
says the agency has told the department to determine the
commission each broker received from the block sales. The
fines will be computed based on the commissions.

The official says the department is also studying how much
to penalize the Philippine Stock Exchange for failing to
impose its rules on special block sales. He says the
department is considering P200, 000.  The department found
the rule violations during a random audit of eight
brokerage firms that handled special block sales in April
and May.

The department did not say if all eight violated the rules,
but it said some executed special block sales before the
requests were approved by the stock exchange's floor
trading arbitration committee. Some trades were not
executed according to the price agreed by the counter
parties and as approved by the committee.

Unlike direct transactions through the open market, block
sales are negotiated sales between two parties that must be
approved by the floor trading arbitration committee. The
minimum transaction value allowed is P5 million. All block
sales must not be more than two fluctuations away from
previous trade provided the cross price is within the best
bid and offer.

The Brokers and Exchanges Department also said the
custodian banks had not been transparent in their
transactions as they bought and sold without disclosing the
beneficial owners. Some bought shares at a discount and
profited by selling them below the market price, hence
competing with investors.

The department says those sales could not be identified
from the trail leading up to the rest of the regular
transactions. They were pooled from different sellers and
bought by different buyers, and were thus sold or purchased
at different prices in violation of one transaction rule.
It says only foreign clients benefit from these
transactions as they buy and sell securities among
themselves; the discount does not flow down to the small
local investors.

Block sales can be used to manipulate prices because they
often induce other investors to buy or sell. When block
sales occur, the prices of stocks are affected because the
market reacts accordingly.  To protect small investors and
curb illegal trading, the SEC wants to limit special block
sales. It has suspended block sales at the stock exchange
until it comes up with acceptable rules.

The commission wants the exchange to approve applications
for block sales only if their purpose is to obtain
strategic control in the management of a corporation or to
get elected in the board.  The value of block sale
transactions in May reached P49.24 billion. That was 60
percent higher than the P10.91 billion in April.  (Manila
Times  29-Oct-1999)

FORTUNE TOBACCO: Gov't may try to settle out of court
-----------------------------------------------------
The Philippine government may agree to settle out of court
a 25-billion-peso tax fraud case filed against Fortune
Tobaccor and its ethnic Chinese tycoon Lucio Tan, Justice
Secretary Serafin Cuevas said.

Cuevas said the government was looking for "another
alternative" to settle the case.  "There are developments
which I cannot reveal right now. Whether it's a compromise
or what, I'll let you know at the appropriate time," he
told reporters.

He acknowledged however that "consultations" were underway
with Tan's lawyers and that "if there will be a resort to
the other alternatives, it will be to the best interest of
the Filipino people."

Tan, whose empire spans banking, beer, cigarettes and
airlines, has been accused of using dummy firms to evade
taxes.  The court's have dealt the government several legal
setbacks, weakening the case against the businessman, a
close friend of President Joseph Estrada.  (Balita News
28-Oct-1999)

PHILIPPINE AIRLINES: Bracing for loss of gov't protection
---------------------------------------------------------
Philippine Airlines (PAL), struggling to recover from near-
bankruptcy, must brace itself to lose government protection
and live with international competition, President Joseph
Estrada said Friday.

But he also admitted Philippine aviation authorities were
still engaged in "government to government talks" with
Taiwan over a suspended air agreement that PAL charged was
allowing Taiwan airlines to poach its passengers.

"I will now advise Philippine Airlines to shed its
preference for protection and strengthen itself for
competition," Estrada said in a forum with foreign
correspondents here. "In re-examining all our air
agreements, our aviation authorities should seek to trade
competitive opportunities rather than protective
restrictions with other countries."

Manila had acted to prevent a collapse of PAL to ensure the
"survival of a national institution and icon", and not to
help its owner Lucio Tan, who is a close political ally,
Estrada said.  The Philippines on October 1 suspended its
air agreement with Taiwan, charging that Taiwan airlines
were violating the conditions of the agreement and
competing unfairly with PAL.

Both countries have been negotiating for a new agreement
and Estrada affirmed that once the negotiations with Taiwan
are finished, the Philippines will take up its air
agreements with South Korea and Singapore-- two other
countries whose airlines are allegedly competing unfairly
with PAL.  However travel and tourism groups charge that
the government's moves to protect PAL are hurting local
tourism and business prospects and forcing Filipino
travellers to pay higher fares for overseas travel.

PAL, Asia's oldest carrier, temporarily shut down in
September last year under debts amounting to 2.2 billion
dollars.  It has since returned to the skies with
drastically limited operations and Estrada has admitted
scrapping of air links with Taiwan was a move to protect
the financially troubled carrier. (Balita News  29-Oct-
1999)


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

GOLDTRON: Creditors reviewing draft of restructure
LIM KAH NGAM: Creditors reviewing draft of restructure
L&M GROUP: Creditors reviewing draft of restructure
------------------------------------------------------
Updating shareholders on their status, three beleaguered
companies -- Lim Kah Ngam (LKN), Goldtron and L&M Group
Investments -- yesterday said they believed they could
continue as going concerns.

In separate statements to the Stock Exchange of Singapore,
the three said this was because their respective creditor
banks remained supportive of their proposed restructuring
schemes.

"The creditor banks remain supportive of the group's
proposed restructuring scheme as evidenced by a majority of
the financial creditors indicating their in-principle
support of the scheme," Property and construction group LKN
said.  "The creditor banks are now reviewing the first
draft of the restructuring agreement."

Late last year, LKN announced it was in technical breach of
financial covenants due to a fall in the value of its
property assets.  Its lenders agreed to a standstill
agreement, leading to a restructuring of its credit
facilities.  In a separate statement, L&M said there were
"reasonable grounds" to believe it could remain in business
because "the creditor banks remain supportive of the L&M
group."  The banks "are considering the broad outline of
financial restructuring options presented by special
accountants Ernst & Young along with tentative terms of a
proposal to list one of L&M Group's major subsidiaries, L&M
Geotechnic."

Also, it said its substantial shareholders were supportive
of the company with conditional offers to subscribe for
30.7 million new shares and provide a credit line of up to
$7 million.

In the same manner, Goldtron said its "creditor banks have
indicated that they will support the company pending the
finalisation of a comprehensive restructuring of its
businesses and borrowings."

All three said they believed sufficient pertinent financial
information was being disseminated to the market to prevent
the establishment of a false market in their stocks.
(Straits Times  30-Oct-1999)

THAKRAL CORP.: Taking preliminary steps for restructure
-------------------------------------------------------
Ailing Thakral Corp said yesterday its financial adviser
Arthur Andersen Associates was "in the final stages" of
gathering information about the group and its businesses.
When completed in the middle of next month, it "will begin
discussions" with Thakral on how to restructure its
finances and businesses.  (Straits Times  30-Oct-1999)


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

INTERNATIONAL ENGINEERING: SET orders loan guarantee report
-----------------------------------------------------------
THE Stock Exchange of Thailand has asked International
Engineering Plc (IEC) to clarify all transactions involved
in the Bt1.2 billion loan guarantee for M Group Plc and
submit a report to the exchange by Wednesday.

SET senior vice-president Patareeya Benjapholchai also said
that IEC must settle the issue before Dec 3.  The order has
been issued after IEC's board of directors failed to
identify an official who could be held responsible for the
company's financial losses following the loan guarantee for
the M Group which borrowed Bt1.2 billion from Krung Thai
Bank in 1996. As of now, the company is yet to reveal any
information involved in the issue.

M Group, which is majority owned by media tycoon Sondhi
Limthongkul, is a major shareholder in IEC.  IEC reported
in a filing to the SET yesterday that its board members
have agreed to pass on their rights to the shareholders to
decide the issue.  The loan guarantee was made in 1996 but
IEC never disclosed the information to the public. IEC now
has to shoulder the financial burden from such a loan
guarantee as the M Group has failed to honour the debt
obligations.

M Group has a total of 16.4 per cent stake in IEC and holds
a 50 per cent stake in the financially ailing Manager Media
Group Plc.  The Securities and Exchange Commission (SEC)
had recently asked the IEC for more information on the loan
guarantees and had set the previous deadline at Aug 23.
Part of the information requested by the SEC was that the
company must state clearly who approved such loan
guarantees.

If an individual director did approve the guarantee, the
company could clearly run into trouble.  Since the IEC has
failed to provide the necessary information as requested by
the SEC, it is being charged Bt3,000 per day until the SEC
receives a full disclosure of information. The company has
also been fined Bt100,000 according to the SEC Act.

The company reported a net loss of Bt354.15 million in the
first half of 1999 against Bt219.10 million in the same
period of the previous year.  (The Nation  30-Oct-1999)

KR PRECISION PLC: Recapitalizing to shrink debt, investing
----------------------------------------------------------
The shareholders of leading hard disk drive component maker
KR Precision Plc have approved the company's
recapitalisation plan under which funds will be raised for
debt reduction and investment in new technology.

The plan is in line with the company's forecast of a return
to full profitability next year.  Shareholders unanimously
voted to approve the recapitalisation plan proposed by the
management and its financial adviser, AIA Capital, at a
meeting on Oct 27.

The plan forms an essential part of the debt-restructuring
programme, which was approved by creditors under the Bank
of Thailand-supervised Corporate Debt Restructuring
Committee on Sept 22 and formalised in documents signed on
Oct 13.

KR Precision plans to increase its registered capital
through the private placement of 42,271,000 new shares at
Bt20 apiece to Prudential Asset Management Asia, and a
rights issue to current shareholders at the ratio of one
new for three existing shares for a total of 17,730,000
shares at Bt10 per share.  The capital increase will raise
approximately Bt1.12 billion, of which some Bt702 million
(US$18 million) will be used to settle in full KR
Precision's outstanding $36 million in debt liabilities.

The balance of the proceeds, around Bt420.7 million, will
be used over the next 18 months to invest in new technology
and to replenish working capital.  Prudential Asset will
hold approximately 39.55 per cent of the enlarged share
capital on a fully-diluted basis if the rights issue is
fully subscribed. In the event that it is not fully taken
up, Prudential Asset has committed itself to investing a
maximum of $27 million in order to ensure that KR Precision
is adequately capitalised.

"This investment in KR Precision represents an important
milestone in the company's history as it brings a new focus
and well-defined performance goals at a critical time.
Prudential Asset Management Asia takes a long-term view of
its investment and is seeking to help KR Precision grow
into a major industry player," KR Precision president Dale
Schudel said in the company's statement.  "Management looks
forward to working closely with this major new investor in
order to regain market share lost over the last two years
and to start to challenge for a bigger share of a dynamic
market place."

Schudel said that management was confident that post-
restructuring, the company will be in a very strong
competitive position as one of the immediate benefits of
the company's revamp will be increased customer confidence.
Having added Quantum and Western Digital as major new
accounts in 1999, he said KR Precision would continue to
diversify its customer base.  Nevertheless, the company
will continue to service Seagate Technology Inc, its major
customer, in order to build on its long relationship and to
fully exploit its strategic location.

The company's core business is the manufacture of precision
suspension assemblies for hard disk drives. Its local
operations include tooling and dieing, chemical etching,
suspension manufacturing, and advanced manufacturing
activities. It has sales and marketing and new product
development staff located in the United States.  (The
Nation  29-Oct-1999)

LAND & HOUSES: Restructure includes 7-year debt rollover
--------------------------------------------------------
Land & Houses (LH), the country's largest housing
developer, has nearly completed its 18 billion baht debt
restructuring plan with over 90 percent of the debts to be
rolled over for seven years, according to the company's

Executive Vice President Adisorn Thananun-narapool.
Fifteen creditors, accounting for 98 percent of the 18
billion baht debt, have signed an agreement backing the
plan.

"Only three creditors, accounting for 2 percent of the debt
value, have yet to sign the agreement. One is expected to
do so next month, while the other two may delayed until
early next year due to problems of their own," he said in
an interview with Business Day.

Most of the creditors agreed to roll over debt for seven
years with a minimum lending rate (MLR) and a 2-year grace
period.  On top of that, 220 million baht or about 1.22
percent of the debt value, will be converted to convertible
debentures, he said.

Adisorn said the company's shareholders yesterday approved
a capital increase of 292 million shares worth 2.92 billion
baht. When including the existing 4.53 billion baht, the
company's register capital will be 7.45 billion baht.
Of the increase in capital, about 94 million shares will be
sold to a new partner - the Government of Singapore
Investment Corporation (GIC) - and the remainder to
existing shareholders at 14 baht apiece.

GIC recently bought new shares worth 1.32 billion baht to
give the company a 20 percent stake.  He said the new
capital would be used as working capital, debt repayment
and for setting up a property fund.  The property fund has
already been registered with a minimum stake of 500 million
baht.

"The fund was established to be a channel for new
investment", he said.  The company will use the fund to
purchase cheap property with low risk from banks. "We will
purchase whatever projects with low risk. Under
construction condominium project is among them. The plan
should be in practice next year."  (Business Day  29-Oct-
1999)

NATIONAL FERTILISER PLC: Reaches debt rehab with 4 banks
--------------------------------------------------------
National Fertiliser Plc (NFC) has restructured its debt and
is now looking forward to expansion.

With the accords in place the future looked bright,
Kamolchai Patarodom, president of the partially state-owned
company, said yesterday.  The way was clear to double the
Rayong fertiliser plant's annual capacity to 800,000 tonnes
next year, building on expected 4% growth in domestic
demand for fertiliser, he said.

Under the deal struck with creditors on Wednesday, the four
Thai creditor banks-Siam City Bank Plc, Siam Commercial
Bank Plc, Krung Thai Bank and the Industrial Finance
Corporation of Thailand-will convert debts totalling 2.1
billion baht into shares.

NFC will issue 420 million common shares at 10 baht par
value. Through private placement, the creditor banks will
take 105 million shares each, at five baht a share.
The proceeds from the private placement will be used to
repay long-term loans totalling 525 million baht to each
bank.  Then the NFC will issue 600 million new common
shares and offer them under a rights programme to existing
shareholders at five baht each.

NFC's shareholders, the Petroleum Authority of Thailand,
Government Saving Bank, Industrial Finance Corporation of
Thailand, Finance Ministry and creditor banks have agreed
to accept 419.32 million shares under the rights scheme.
The proceeds will be used to repay overdue trust receipts
and as part of working capital to pay for imported raw
materials, as well as to finance operations.

Repayment of accrued interest to date will be deferred for
repayment by instalment between 2009 and 2011.  Long-term
loans totalling about 6.2 billion baht will be repaid by
instalment, twice a year, between June 2001 and December
2011.  In addition, the annual interest on long-term loans
accruing from October this year to October 2001 will be
charged at the minimum lending rate minus two percentage
points, after which the minimum rate will apply.

Short-term loans and trust receipt loans will be subject to
the minimum overdraft rate.  Before the first repayment
under the new schedule, any surplus cash from operations
will be repaid to creditors.  (Bangkok Post, The Nation
29-Oct-1999)

THANARA CO. LTD.: Completes asset-for-debt swap
-----------------------------------------------
ICC International Plc's board has allowed the company to
accept 22 land titles with a combined assessed price of
about Bt500 million from Thanara Co Ltd, in order to settle
Thanara's recently-incurred debts of around Bt754.61
million with the company.  (The Nation  29-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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Copyright 1999.  All rights reserved.  ISSN: 1520-9482.

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