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     T R O U B L E D   C O M P A N Y   R E P O R T E R

                          A S I A   P A C I F I C

            Tuesday, November 23, 1999, Vol. 2, No. 228

                                   Headlines


* C H I N A  &  H O N G  K O N G *

CLIMAX INTERNATIONAL: Signs LOI with First Century


* K O R E A *

DAEWOO CORP.: Court receivership could be in future
DAEWOO GROUP: KAMCO may assume part of foreign debts
HANJIN GROUP: Tax evasion probe continues on KAL affiliate
HANJIN GROUP: Restructure to include offing 3 affiliates


* M A L A Y S I A *

INTRIA BHD: Restructure questions ahead at annual meeting


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

NATIONAL STEEL CORP.: Court okays creditor asset auction


* T H A I L A N D *

BANGKOK RANCH: Posts 3Q and 9-month losses
BOUTIQUE NEWCITY: Posts 3Q and 9-month losses
CHAOPHYA MARBLE-GRANITE: Posts 3Q and 9-month losses
INDUS.FINANCE CORP.OF THAILAND: Working on reducing NPLs
METRO SYSTEMS: Posts 3Q and 9-month losses
NEW IMPERIAL HOTEL: Posts 3Q and 9-month losses
NITHI VENTURE: Posts 3Q and 9-month losses
PANASIA FOOTWEAR: Posts 3Q and 9-month losses
ROYAL CERAMIC INDUSTRY: Posts 3Q and 9-month losses
SAMMAKORN: Posts 9-month loss
SCANDINAVIAN LEASING: Posts 3Q and 9-month losses
SEMICONDUCTOR VENTURES INT'L: Posts 9-month loss
SG ASIA CREDIT: Gov't pact saves it from insolvency
SIAM STEEL SYNDICATE CO.: Restructure deal by year-end
SIKARIN: Posts 3Q and 9-month losses
STP & I: Posts 9-month loss
SUPALAI: Posts 3Q and 9-month losses
THAI-GERMAN CERAMIC INDUST.: Posts 3Q and 9-month losses
THAI METAL DRUM: Posts 3Q and 9-month losses
THAI OIL CO.: 3-4 more months needed to finalize rehab plan
THAI OLEFIN CO.: PTT plan to bail out company


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

CLIMAX INTERNATIONAL: Signs LOI with First Century
--------------------------------------------------
Stationery-maker Climax International has moved closer to a
rescue deal after signing a letter of intent with private
investor First Century Holdings, it emerged yesterday.

The non-binding understanding gives First Century exclusive
rights in negotiating with Climax, Climax's 26 creditor
banks and its financial adviser, KPMG Peat Marwick, until
the end of January next year.  It also gives First Century
access to Climax's books and accounts.

The letter of intent means First Century - a British Virgin
Island-based company controlled by businessman Frederick
Kan Shiu-cheong - temporarily surpasses its rival - a
consortium led by a listed printing firm.  Climax director
David Chu Kim-ho confirmed that an interested party had
submitted a proposal to KPMG after the company had signed
the letter of intent last Monday with First Century.

"However, we will not consider any proposals other than
First Century's within a period of time due to the
understanding between Climax and First Century," he said.

He would not divulge the identity of the interested party.
Mr Chu said First Century's plan might or might not
proceed, depending largely on the decision of Climax's
creditor banks.  First Century said it planned to subscribe
to 800 million new Climax shares at five cents a share for
$40 million. The subscription price represents a 53.27 per
cent discount to the closing of 10.7 cents on November 15,
the last trading day.

The company said its plan would involve no asset injection
into Climax.  On completion, First Century would hold at
least 43.5 per cent of Climax, it said.  However, it had no
intention to launch a general offer for the rest of the
company's shares, although its ultimate shareholding would
exceed the takeover threshold of 35 per cent, it said.

First Century would seek a waiver for the general offer
from the Securities and Futures Commission, it said.
Sources familiar with the situation said First Century had
offered to convert about 70 per cent of Climax's debts into
new shares.  As of September 30, Climax's outstanding debts
amounted to $583.64 million while its net asset value was
4.5 cents.  Its net deficit stood at 92 cents at the end of
March.

The sources said First Century also offered to use Climax's
$25 million cash pile to help repay Climax's bank creditors
and the remaining debts would be settled in the next few
years.  If First Century's offer goes through, substantial
shareholders the Fung family and United Pacific Industries
(UPI) would have their stakes diluted significantly.  The
Fung family's stake will shrink to 8.17 per cent from the
existing 39.84 per cent, while UPI's will drop to 6 per
cent from 29.25 per cent.  Creditor banks will hold about
30 per cent of Climax.  Expansion before the economic
downturn in 1997 left Climax with piles of obsolete
inventory and a high level of debt.  (South China Morning
Post  22-Nov-1999)


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

DAEWOO CORP.: Court receivership could be in future
---------------------------------------------------
Daewoo Corp., the flagship of the sinking Daewoo Group, may
be placed under court receivership, as the debt-workout
plans for the company face strong resistance from foreign
creditors, a high-ranking government official hinted
yesterday.

Lee Yong-keun, vice chairman of the Financial Supervisory
Commission (FSC), said that it is up to the firm's local
creditors to decide whether to put the company under court
receivership or revive it through an out-of-court debt
workout plan.  If creditors judge that the liquidation
value of the firm is higher than its value as a going
concern, they will opt for court receivership. The recently
completed auditors' due diligence on the firm showed that
there is no big difference between the two values.

Lee remarked that equally strong cases can be made for
liquidating the firm and salvaging it on a workout plan. He
added that foreign creditors, who have a greater amount of
loans in the company, prefer the work out plan option.

"If creditors decide on court receivership, the government
will accept it," Lee said, strongly indicating that local
creditors may seek court receivership in the face of
opposition from recalcitrant foreign creditors to their
workout plans.

Some market analysts took Lee's remarks as a threat to
foreign creditors, with whom final negotiations will be
held before Nov. 25, the day the debt moratorium offered by
local creditors expires.  But most analysts viewed court
receivership for Daewoo Corp. as inevitable because its
value as a going concern is not much larger than what
creditors would get by liquidating it.

The Corporate Restructuring Coordination Committee (CRCC)
will continue to persuade foreign creditors to participate
in the workout programs until Nov. 25 but should they fail
to reach an agreement, domestic creditors may extend the
debt moratorium.

Dismissing worries about a delay in finalizing
rehabilitation schemes for four major Daewoo units, he said
that the plans will come out by Thursday, as scheduled.
Local creditors and the government-appointed CRCC will soon
meet with foreign lenders to persuade them to participate
in the programs, he added.

"Putting Daewoo Corp. under court receivership will
eventually lead to the liquidation of the company. Both
local and foreign creditors will then have to suffer huge
losses," a CRCC official said.

He said that local creditors last week handed over the
results of due diligence and the debt-workout plans to
foreign lenders for review.  (Korea Herald  23-Nov-1999,
Digital ChosunIlbo  22-Nov-1999)

DAEWOO GROUP: KAMCO may assume part of foreign debts
----------------------------------------------------
Korea Asset Management Corp. (KAMCO) may take over part of
the Daewoo Group's foreign debts, after writing them down
in accordance with loan-loss ratios, a government official
said yesterday.

The government and Daewoo's domestic creditors will meet
this week as scheduled to finalize debt-workout plans for
seven Daewoo units, including the flagship Daewoo Corp.,
the official at the Financial Supervisory Commission (FSC)
said.  Local creditors will hammer out the corporate
rehabilitation programs for Daewoo Telecom and Daewoo
Capital today, while the plans for Daewoo Corp., Daewoo
Heavy Industries and Daewoo Electronics will be completed
Wednesday, followed by a meeting of Daewoo Motor creditors
the next day.

Any delay in settling problems with foreign lenders and
local creditors might lead to a revival of market anxiety,
the FSC official said. He added that the debt-rescheduling
programs must be finalized quickly, in order to live up to
the original goal of enhancing the Daewoo units' value by
normalizing them as soon as possible.

The government and local creditors will continue to
encourage foreign creditors to participate in the workout
programs, he noted.  For recalcitrant foreign lenders,
however, the government is considering ways to have KAMCO
take over their Daewoo loans through local banks after
write-downs at loan-loss ratios, or "haircuts" as they are
often called by foreign bankers, he added.

Assuming that an estimated $3 billion, or less than half of
Daewoo's $6.8-billion foreign debts, will be left after
write-offs, it would take some 4.2 trillion won for KAMCO
to purchase all the remaining debts, he explained. The
agency will have no difficulty in purchasing them because
it currently has access to about 10 trillion won, he added.

An official at the government-appointed Corporate
Restructuring Coordination Committee said that reaching a
consensus will be made easier by reducing the number of
creditors.  It is expected that the committee will offer
the deal at last-minute talks with foreign lenders this
week.  (Korea Herald  22-Nov-1999)

HANJIN GROUP: Tax evasion probe continues on KAL affiliate
----------------------------------------------------------
As part of its investigating into tax evasion by the Hanjin
Group, the Central Investigation Department (CID) of the
Supreme Prosecutor's Office (SPO) summoned and questioned
four level two and three former and current executives of
the Ministry of Construction and Transportation (MoCT)
Monday, including head of Seoul Regional Aviation
Administration Son Soon-yong on suspicion of receiving
money and goods from Korean Air Lines (KAL).

Between August 1996 and January 1999 when Son was the head
of MoCT's Aviation Bureau, he received reportedly around W3
million from KAL every month for a total W60 million. Other
executives are also suspected of receiving cash bribes, the
prosecutor's office said. The prosecutor's office will
request warrants of arrest on November 23 if it confirms
they received the money.  (Digital ChosunIlbo  22-Nov-1999)

HANJIN GROUP: Restructure to include offing 3 affiliates
--------------------------------------------------------
Hanjin Group says it will let go of three financial
affiliates - Hanjin Investment and Securities (KSE: 08560),
Oriental Fire and Marine Insurance and Korean French
Banking, by June next year.

Under its restructuing plan which calls for the acquisition
of foreign partners, the group said it could advance the
date that Hanjin Investment and Securities and Korean
French Banking secede from the group to within this year.
(Asia Pulse  08-November-1999)


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

INTRIA BHD: Restructure questions ahead at annual meeting
---------------------------------------------------------
On Wednesday, shareholders attending debt-laden Intria
Bhd's AGM will probably have many questions to raise on the
group's restructuring plan, which has been pending for more
than a year.

Last Tuesday, Intria informed the KLSE that the High Court
had ordered its former substantial shareholder, Mekar
Idaman Sdn Bhd, to pay the company RM202.9mil together with
interest.  Intria had on Sept 3 filed a suit against Mekar
Idaman, its former holding company, for the recovery of
RM202.9mil owed by Mekar Idaman to Intria.  However, since
Mekar Idaman had been under receivership since July last
year and Intria was an unsecured creditor, the recovery of
the judgment debt remained uncertain, the group said in its
statement.

Intria has already made full provision on the amount
claimed in the financial year ended June 1998.  Analysts
said if Intria manages to recover the full amount in cash,
its cash position would be greatly boosted.

"Since the company has made full provision for the default
of this payment in financial year 1998, it would be able to
write back this amount if Mekar Idaman paid the company,"
said an analyst.

Intria's share price soared to a year high of RM1.49 in
mid-July from 29 sen at the beginning of the year on
speculative play fuelled by rumours that the company was
likely to announce a rescue package that would turn it
around.  However, recent talks that Intria might opt for a
capital reduction to settle its huge debts sparked heavy
selling on the stock. Its share price has plunged more than
50% over the last two months, closing at 63 sen on Friday.

According to its latest annual report, the company's bank
borrowings--which is payable within 12 months--amounts to
RM560.7mil.  For the financial year ended June 1999, Intria
recorded a lower pre-tax loss of RM172mil compared with a
loss of RM555mil in 1998. The company said provisions for
diminution in value amounting to RM197mil for foreign
quoted investment was the most significant item
contributing to the pre-tax loss.

Intria owns a 25-year concession to collect toll on Penang
Bridge, which generated gross revenue of RM100.6mil in the
last financial year.  In the annual report, Intria said
that restructuring options were being discussed with
interested parties and these include capital and debt
restructuring, the injection of assets and an extension of
the loan repayment period.

It had been reported that three companies, namely United
Engineers Malaysia (UEM), MTD Capital Bhd and Kejora Harta
Bhd--were interested in bidding for a stake in the
infrastructure company, in which a 42% stake is being held
by Pengurusan Danaharta Nasional Bhd.  MTD Capital has
informed the KLSE that it has submitted a proposal to
Danaharta and Intria on the proposed corporate
restructuring of Intria.

"Subsequently, MTD has held preliminary discussions with
Danaharta, Intria and its bankers," MTD Capital told the
KLSE early last month.  (Star Online  22-Nov-1999)


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

NATIONAL STEEL CORP.: Court okays creditor asset auction
--------------------------------------------------------
The Regional Trial Court of Lanao del Norte in Iligan City
gave creditor banks the go signal to put on the auction
block National Steel Corp.'s (NSC) mortgaged assets
estimated to be worth between 30 billion Philippine pesos
(US$741.6 million at PhP40.453:US$1) and PhP35 billion
($865.2 million).

In the notice of auction issued November 18, the court-
appointed provincial sheriff said the mortgaged properties
would be auctioned off to "the highest bidder for cash" on
December 22 at 10:00 a.m. in Iligan. The sheriff was tasked
to carry out the court's orders.  The notice of sale was
signed by sheriff Montoy B. Lomondot and executive clerk of
court and ex-officio sheriff Miriam I. Rovira-Prete, both
from the office of the provincial sheriff of the RTC of
Lanao del Norte in Iligan. The notice also lists all the
properties and assets to be bidded out.

In the notice of auction, the court officers advised
prospective buyers "to investigate for themselves the
title/s of the ... property/ies" to be auctioned off.
Between now and December 22, the properties will also be
published in newspapers of general circulation in
compliance with existing rules and regulations.

Last week, Iligan City mayor Franklin M. Quijano, along
with several NSC employees, called on Malaca¤ang to step in
and prevent the dissipation of NSC's assets. Mr. Quijano
also proposed the appointment of a rehabilitation receiver
which could steer the company back to recovery.

In a phone interview, Romulo Panerio, president of NSC's
supervisors union, said in a meeting with President Joseph
Estrada and Mr. Quijano last Friday, the President gave
instructions for the concerned parties and government
agencies to come up with a comprehensive solution to NSC's
problems, while at the same time ruling out any possible
bailout by the government.

One alternative, Mr. Panerio said, is to set up NSC as a
toll producer of the steel requirements of local downstream
players. Under this arrangement, he explained the
downstream players will be the ones to import the raw
materials for their steel requirements and then contract to
NSC the actual production.

The properties to be auctioned off are composed of real
estate and plant equipment which secured debts extended by
the banks to NSC as contained in the mortgage trust
indenture (MTI) agreement signed by NSC with the banks led
by Philippine National Bank (PNB), Land Bank of the
Philippines, Allied Banking Corp., and Westmont Bank.  The
four banks hold the majority of NSC's PhP9.87-billion ($244
million) debts. An MTI is a contract which consolidates all
the company's assets used as collateral for its debts. An
MTI facilitates foreclosure in the event of nonpayment of
loans.

NSC's creditor banks through their legal counsel last
November 15 filed for extra-judicial foreclosure of NSC's
mortgaged assets before the RTC. By opting to file extra-
judicial foreclosure proceedings against NSC, the banks
presumably saved themselves time as opposed to going
through regular court channels, which would have dragged on
longer.

In filing the petition, the banks cited Republic Act 3135,
the law authorizing the extra-judicial foreclosure of a
firm's mortgaged assets.  The petition was also filed on
behalf of NSC's other creditors including Far East Bank &
Trust Co., Rizal Commercial Banking Corp., Republic of the
Philippines-Japan Export-Import Bank, National Development
Corp., Development Bank of the Philippines, AsianBank
Corp., Bank of Commerce, China Banking Corp., Credit
Agricole Indosuez, Wise Citco, Philippine Commercial
International Bank, Traders Royal Bank, United Coconut
Planters Bank, and Urban Bank.

In the petition, the banks asked that a court-appointed
sheriff "take possession of, and sell and dispose of, the
... real estate properties ... at a public auction pursuant
to and by virtue of the special power of attorney granted
in the mortgage trust indenture executed between the
parties."

The banks said they decided to foreclose on the mortgaged
assets detailed in the MTI since NSC failed to honor the
terms of the agreement by not meeting scheduled payments.
In the petition, they said "The secured creditors' rights
and interests over the said property subject of the
mortgage documents have been violated by ...(NSC) by its
failure to comply with the secured creditors' demand for
the payment of the principal obligations and other
conditions of the mortgage embodied in the MTI."

Meanwhile, NSC will partially resume operations before the
year ends as the state-owned firm's creditor banks and new
group of investors near an agreement, a ranking Palace
official said over the weekend.

"We've talked to the interested parties before and we are
reviewing the rehabilitation plan. NSC's creditor banks are
also talking with these interested parties and we hope that
within the next few weeks the plan can be partially
opened," Trade Secretary Jose T. Pardo said last Saturday.

NSC's Iligan City plant temporarily stopped operations on
November 7 after running out of raw materials. With a
PhP15-billion ($370.8 million) debt, NSC's only chance of
resuming operations is if a new investor raises the $130-
million capital requirement to restart the steel company's
operations. Its creditor banks also have the option to sell
NSC's foreclosed assets although the priority is to reopen
the plant with the help of new investors.

According to last Friday's newspaper reports quoting
Department of Trade and Industry (DTI) sources, Philippine
Airlines, Inc. (PAL) chairman Lucio Tan wants to take over
NSC through the Philippine National Bank (PNB), one of
NSC's largest creditors. President Estrada and Mr. Pardo,
who heads the DTI, both said nothing is wrong if Mr. Tan
buys into NSC. Mr. Pardo though confirmed Mr. Tan's name
was raised as one of the interested parties.

"Mr. Tan's name was mentioned and we said if he is
interested then why don't we talk to him. We would welcome
any investor group that can bring in the capital infusion,"
Mr. Pardo said during the President's regular radio program
last Saturday.

A Palace statement also said presidential adviser on iron
and steel industry John Ng "recently" resigned his post after
his company, Cathay Pacific Steel Corp. has also reportedly
expressed interest in NSC.  The statement quoted Executive
Secretary Ronaldo B. Zamora as saying that Mr. Ng's
resignation was aimed at avoiding a conflict of interest
situation.

But Presidential Spokesperson Fernando T. Barican in a
telephone interview yesterday said he does not know about
Mr. Ng's resignation.  It was Mr. Barican who told
reporters last Friday that Mr. Ng should resign as
presidential adviser should his company formally submit a
bid for NSC.  (Business World  22-Nov-1999)


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

BANGKOK RANCH: Posts 3Q and 9-month losses
------------------------------------------
Bangkok Ranch posted 9M losses of 404.26m baht, compared
with losses of 191.74m last year. 3Q losses were 220.57m
baht, compared with losses of 59.3m last year.  (Bangkok
Post  22-Nov-1999)

BOUTIQUE NEWCITY: Posts 3Q and 9-month losses
---------------------------------------------
Boutique Newcity posted consolidated 9M losses of 40.58m
baht, compared with profits of 7.4m last year. 3Q losses
were 51.1m baht, compared with profits of 2m last year.
(Bangkok Post  22-Nov-1999)

CHAOPHYA MARBLE-GRANITE: Posts 3Q and 9-month losses
----------------------------------------------------
Chaophya Marble-Granite posted 9M losses of 130.7m baht,
compared with losses of 168.9m last year. 3Q losses were
31m baht, compared with losses of 88.6m last year.
(Bangkok Post  22-Nov-1999)

INDUS.FINANCE CORP.OF THAILAND: Working on reducing NPLs
--------------------------------------------------------
The Industrial Finance Corporation of Thailand (IFCT)
yesterday said it hopes to reduce non-performing loans
(NPLs) by 27 percent of the overall debt by year's end.
IFCT Executive Vice President Yada Prapinmongkolkarn said
that by the end of May, the corporation's NPLs peaked at 43
percent, but came down to 39 percent by the end of
September.

Recently, the company had restructured debts with Thai Oil
and the National Fertilizer Company, resulting in a
combined NPL reduction of 10 percent. If it can maintain
this pace, IFCT hope to reach its target and solve its NPL
problem.  She also added that there was much work still to
be done. Kulatorn Kirby Company posted a debt of 10 billion
baht, and is close to finalizing its debt reform plan with
IFCT.

Thai Telephone and Telecommunication (TT&T), meanwhile, is
in the process of negotiating a debt revamp with IFCT,
while Donmuang Tollway is still ridden with financial
difficulty as its income was eroded by interest payments,
she said.  Adding to the dilemma is that the majority of
the tollway company's shareholders have demanded that the
Finance Ministry, which owns 40 percent interest in
company, step in and provide aid to the ailing company.

Moreover, two Thai reinforce steel companies were under
negotiations with IFCT to restructure their debts, Yada
said.  She also disclosed that next year IFCT plans to
mobilize a capital of 40 billion baht. The first portion of
the fund is expected to come from two sources - the Bank of
Thailand (BOT) and the Finance Ministry - with term of 3-5
years and interest of 3.5 percent.

The second portion will be provided from debentures
issuance guaranteed by the Finance Ministry, she said,
adding that the three debentures rates will consist of
three-year maturity with 6.5 percent interest and five-year
maturity with 7 percent interest. And finally, the
debentures maturing in seven years with 7.5 percent
interest.

As early as today, IFCT will issue 3 billion baht of
debentures exclusively to small and medium enterprises, she
said.  (Business Day  22-Nov-1999)

METRO SYSTEMS: Posts 3Q and 9-month losses
------------------------------------------
Metro Systems posted consolidated 9M losses of 28.8m baht,
compared with losses of 55.57m last year. 3Q losses were
21.75m baht, compared with losses of 33.9m last year.
(Bangkok Post  22-Nov-1999)

NEW IMPERIAL HOTEL: Posts 3Q and 9-month losses
-----------------------------------------------
New Imperial Hotel posted consolidated 9M losses of 268.7m
baht, compared with profits of 143.46m last year. 3Q losses
were 197.7m baht, compared with losses of 29m last year.
(Bangkok Post  22-Nov-1999)

NITHI VENTURE: Posts 3Q and 9-month losses
------------------------------------------
Nithi Venture posted consolidated 9M losses of 53m baht,
compared with losses of 36m last year. 3Q losses were 18.9m
baht, down from 31m.  (Bangkok Post  22-Nov-1999)

PANASIA FOOTWEAR: Posts 3Q and 9-month losses
---------------------------------------------
Panasia Footwear posted 9M losses of 352.6m baht, compared
with profits of 559.39m last year. 3Q losses were 342.8m
baht, compared with losses of 7.56m last year.  (Bangkok
Post  22-Nov-1999)

ROYAL CERAMIC INDUSTRY: Posts 3Q and 9-month losses
---------------------------------------------------
Royal Ceramic Industry posted 9M losses of 237.9m baht,
compared with losses of 202.75m last year. 3Q losses were
100.89m baht, compared with losses of 123m last year.
(Bangkok Post  22-Nov-1999)

SAMMAKORN: Posts 9-month loss
-----------------------------
Sammakorn posted 9M losses of 32.38m baht, compared with
profits of 6m last year. The 3rd Quarter saw profits,
however, of 2.98m baht, compared with losses of 4.29m last
year.  (Bangkok Post  22-Nov-1999)

SCANDINAVIAN LEASING: Posts 3Q and 9-month losses
-------------------------------------------------
Scandinavian Leasing posted 9M losses of 185.28m baht,
compared with losses of 400.4m last year. 3Q losses were
156.25m baht, compared with profits of 61.9m last year.
(Bangkok Post  22-Nov-1999)

SEMICONDUCTOR VENTURES INT'L: Posts 9-month loss
------------------------------------------------
Semiconductor Ventures International posted consolidated 9M
losses of 14.13m baht, compared with profits of 74.56m last
year, even though the 3rd Quarter showed profits of 15.8m
baht, compared with 51.5m last year.  (Bangkok Post  22-
Nov-1999)

SG ASIA CREDIT: Gov't pact saves it from insolvency
---------------------------------------------------
SG ASIA Credit Pcl, a finance company owned by Societe
Generale of France and Bangkok Bank Pcl, signed a pact with
the Finance Ministry to pull the company back from the
brink of insolvency.

The government, through a rescue program for ailing
lenders, will buy 5.9 billion baht ($151 million) of new
stock in the company. Societe Generale and Bangkok Bank
will also buy a total of 11.6 billion baht of new shares.

"The capital increase will restore confidence in SG Asia,"
said Supachai Pisitwanich, the finance ministry's permanent
secretary. "The capital will enable the company to expand."

The French and Thai banks had to write off their existing
equity in the venture to qualify for money from the
government. The injection raises the finance company's
capital ratio to more than 8.5 percent of risk-weighted
capital, the Thai minimum.  SG Asia, like most Thai
lenders, saw bad loans surge to more than half of total
loans because of recession and a currency devaluation.

Several capital increase plans were scrapped during the
past year as defaults mounted and investors balked at
injecting new funds. The plan signed on Friday was
initially scheduled to be completed in August.  After
injection of fresh capital, Societe General will own 36
percent of SG Asia, the government 32 percent and Bangkok
Bank 27.5 percent. Existing shareholders own the rest. They
didn't have to write off their equity because Bangkok Bank
and Societe Generale agreed to shoulder the cost.

The finance ministry said it will pay 11.5 baht for each of
the new preferred shares, a 16-percent discount to the
current market price. Societe Generale and Bangkok Bank
also have the right to buy out the government in three
years at 12.75 baht per share.  SG Asia's shares rose 1
baht to 13.75 baht on Friday.

SG Asia is the third Thai lender to tap the rescue fund,
after Siam Commercial Bank Pcl and Tisco Finance Pcl.
(Bloomberg, Business Day  22-Nov-1999)

SIAM STEEL SYNDICATE CO.: Restructure deal by year-end
------------------------------------------------------
Siam Steel Syndicate Co, a steel bar maker in the Italian-
Thai group, should conclude its Bt2.5 billion debt
restructuring deal by the end of this year, according to
the company's managing director, Visuth Jirathiyut.

The debt-revamp plan, under the supervision of the Bank of
Thailand's Corporate Debt Restructuring Advisory Committee,
asks for some "haircut" for part of the debt, while the
remaining debt would be rescheduled. Further terms of the
restructuring plan are still under negotiation.  Siam Steel
Syndicate has not paid principal or interest on the loans
it borrowed from the creditors since the firm began debt
talks in July.

The negotiations are expected to be finalised within 1-2
months, Visuth said.  More than Bt2 billion of the debt is
owed to six local banks and finance companies, led by
Bangkok Bank. SCB Securities Co is advising Siam Steel
Syndicate on the debt restructuring plan.  Siam Steel
Syndicate is 80 per cent owned by Italian-Thai, a major
Thai construction company. The remaining 20 per cent is
held by Filipino and other investors.

Regarding the company's operations, Visuth said its plant
is running at 40 per cent of total capacity. It is now
producing 100,000 tonnes of steel a year, compared with the
maximum capacity of 250,000 tonnes.

"Unlike other steel products, it is not price-competitive
to export steel bar to long-distance destinations such as
Europe or the US. Most of the country's steel export
products are value-added steel such as hot-rolled and cold-
rolled steel sheets," Visuth said.

Therefore, locally-produced steel bar is mainly used in
domestic construction projects. Siam Steel Syndicate
expects the construction market to rebound from the slump
during this quarter or early next year.  Last month, three
major domestic steel bar producers -- Cementhai Steel Co,
NTS Steel Group Plc and Bangkok Steel Industry Plc --
signed a memorandum of understanding to merge their
operations, pending conclusion of their separate debt-
restructuring talks with banks.  (The Nation  22-Nov-1999)

SIKARIN: Posts 3Q and 9-month losses
------------------------------------
Sikarin posted consolidated 9M losses of 535.34m baht,
compared with losses of 122.97m last year. 3Q losses were
450.7m baht, compared with losses of 23.17m last year.
(Bangkok Post  22-Nov-1999)

STP & I: Posts 9-month loss
---------------------------
STP&I posted 9M losses of 116.7m baht, compared with
profits of 88.8m last year. The 3rd Quarter reported
profits of 139.8m baht, however, up from 20.48m. (Bangkok
Post  22-Nov-1999)

SUPALAI: Posts 3Q and 9-month losses
------------------------------------
Supalai posted consolidated 9M losses of 245.2m baht,
compared with losses of 144.8m last year. 3Q losses were
59.37m baht, down from 141m.  (Bangkok Post  22-Nov-1999)

THAI-GERMAN CERAMIC INDUST.: Posts 3Q and 9-month losses
--------------------------------------------------------
Thai-German Ceramic Industry posted consolidated 9M losses
of 221.68m baht, compared with losses of 185.89m last year.
3Q losses were 194.35m baht, up from 23.69m.  (Bangkok Post
22-Nov-1999)

THAI METAL DRUM: Posts 3Q and 9-month losses
--------------------------------------------
Thai Metal Drum posted consolidated 9M losses of 69.79m
baht, compared with profits of 4.6m last year. 3Q losses
were 22.75m baht, up from 3.2m.  (Bangkok Post  22-Nov-
1999)

THAI OIL CO.: 3-4 more months needed to finalize rehab plan
-----------------------------------------------------------
Thai Oil's on-going problems got worse yesterday as the
steering committee announced that it will need three to
four months to finalize its debt restructuring plan.

The committee said it will resolve the problem through the
Central Bankruptcy Court (CBC), according to Vorayuth
Charoenloet, Vice President of Industrial Finance
Corporation of Thailand (IFCT), Thai Oil's majority
creditor.  Managing Director of Thai Oil, Chulajit
Boonyakate, earlier said that Thai Oil's creditors - who
are subject to an agreement with the Office of Corporate
Debt Restructuring Advisory Committee (CDRA), agree with
the plan.

Thai Oil can proceed to solicit for new loans, which could
take two months until end of February, 2000.  Voravudh said
the steering committee decided to bring the matter before
the CBC after learning that not all of Thai Oil's creditors
approved of the debt restructuring plan.

"We want to prevent the entanglement which might result in
the original debt reform plan, that's the reason why we
want to take the matter to CBC and let the court decide,"
he said.

Last Friday was the deadline for creditors to decide
whether to approve the plan.  Meanwhile, Chao Kwanyurn, who
owns 25.6 percent stake in Thai Oil, announced that he will
block the recapitalization plan which must be approved by
75 percent of the shareholders.  According to the debt
restructuring program, Petroleum Authority of Thailand
(PTT) plans to inject new capital of US$250 million and
swap US$400 million debt to US$250 worth of equity. By
doing so, Thai Oil will reduce its debt by US$150 million,
he said.  (Business Day  22-Nov-1999)

THAI OLEFIN CO.: PTT plan to bail out company
---------------------------------------------
The Petroleum Authority of Thailand (PTT) has found a
solution to bail out the troubled Thai Olefin Co. (TOC).
Chittapong Kwangsutsathit, PTT Deputy Governor in charge of
planning and policy, said PTT plans to set up a "standby
fund" totaling as much as US$50 million for TOC instead of
injecting fresh capital. If TOC is in financial trouble, it
can draw from the new fund.

He said PTT is in talks with TOC's shareholders about
providing the standby fund to help stabilize TOC's future
liquidity. The fund, totaling US$50 million, will be
supplied by shareholders in proportion to their stake.
TOC's shareholders consist of PTT, which owns a 49 percent
stake, Bangkok Poly Ethylene with 13.76 percent and Siam
Cement CO (SCC) with 13.32 percent. In addition, Thai
Petrochemical Industry (TPI), VinyThai, Bangkok Synthetic,
Siam Styrene Monomer and NPC also own minor stakes, ranging
from 2 to 7 percent.

If shareholders do not provide their share in the fund, he
said, PTT will make up the shortfall under the condition
that they pay a "special" interest rate, without
elaborating.  (Business Day  22-Nov-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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