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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

            Thursday, December 9, 1999, Vol. 2, No. 240

                                         Headlines


* C H I N A  &  H O N G  K O N G *

CHINESE ESTATES HOLDINGS: Securities sold to refinance debt
GUANGDONG ENTERPRISES: Debt rehab plan expected next week
GUANGDONG INVESTMENT: Non-core asset sales planned
SIMSEN INT'L: To invest $50M despite loss position


* K O R E A *

DAEWOO GROUP.: Foreign debt assumption at varied discounts


* M A L A Y S I A *

RENONG BHD: Preparing non-core-asset disposal plan
TIME ENGINEERING: Renong unhappy with bids,still looking
TIME TELECOMMUNICATIONS: New buyer emerges


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

EYCO GROUP: Hires 3rd party appraiser to aver asset value
MONDRAGON LEISURE AND RESORT CORP.: Loan payment shaky
UNIWIDE GROUP: SEC likely to extend payment moratorium


* T H A I L A N D *

THAI AIRWAYS: To refinance aircraft-purchase debt
THAI OIL CO.: Dec. 15 final talks on rehab plan
THAI PETROCHEMICAL INDUS.: Two creditors holding up rehab
TPI POLENE: Rehab plan going to Bankruptcy Court


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

CHINESE ESTATES HOLDINGS: Securities sold to refinance debt
-----------------------------------------------------------
Chinese Estates Holdings has sold more than $1.82 billion
in commercial mortgage-backed securities to refinance debt.

The four-year note is the first such issue wholly
denominated in Hong Kong dollars.  The issue is backed by
rental income from Windsor House in Causeway Bay, the 41-
storey commercial and office project owned and managed by
Chinese Estates.  Michael Leemputte, the managing director
of financial engineering for Asia Pacific at the issue's
arranger SG, said: "The Windsor House deal is a
breakthrough for the Hong Kong securitisation market."

It was not only the first mortgage-backed securities issue
to be wholly denominated in Hong Kong dollars but the first
of its kind to be rated Aaa by leading credit-rating agency
Moody's Investors Service.  SG said the issue, due to close
today, had been heavily oversubscribed.  Subscribers
included SAR banks, insurance companies, fund managers and
private banking clients.  BOCI Capital was the co-lead
manager.

The securities will be issued in five series and are due to
mature on December 8, 2003.  SG said Chinese Estates would
be able to draw down the proceeds on March 30.  Before
then, the proceeds would be invested in eligible Hong Kong
dollar investments.  After that date, Windsor House would
form the collateral for the issue, which was launched by
Windsor House Securitisation.  (South China Morning Post
08-Dec-1999)

GUANGDONG ENTERPRISES: Debt rehab plan expected next
eek  ---------------------------------------------------------
Creditors of insolvent Guangdong Enterprises (Holdings)
(GDE) are expected to reach an agreement on a debt-
restructuring plan next week, according to sources.

Negotiations on a US$5.59 billion restructuring plan have
been bogged down since July 1, when the Guangdong
provincial government stopped making interest payments to
creditor banks. The latest proposal on the restructuring of
GDE is expected to be unveiled at a creditors' meeting to
be held on December 15 or December 16, the sources said.

May Seah, head of corporate information and planning at
Guangdong Investment (GDI), GDE's main listed arm,
confirmed a "solid plan" would be announced at a creditors'
meeting in the next few weeks. However, she said the exact
timing had not been fixed.

Speculation of an imminent agreement has been fuelled by
reports that the central Government plans to inject between
40 billion yuan (about HK$37.34 billion) and 60 billion
yuan into the Guangdong provincial government to bail out
troubled financial institutions, including GDE.  However, a
spokesman for the provincial government has dismissed the
reports as "inaccurate."

Share prices of GDI surged 37 per cent in a month amid
rumours a consensus would soon be reached.  The counter
yesterday shaded four cents to close at HK$1.26 after
reaching a recent high of HK$1.37.  One source said
creditor banks were still working to finalise the terms of
the restructuring deal.

The banks have been asked to accept a cut of between 30 and
40 per cent in repayments of loan principals. But sources
said the banks had not reached a consensus on the size of
the cut. "It is not easy to reach an agreement as there are
fewer than 10 days left, " one banker said.

GDE has assets of HK$19.4 billion and liabilities of
HK$31.8 billion, according to Goldman Sachs, which advising
the Guangdong provincial government on the restructuring.
Meanwhile, GDI's restructuring steering committee is also
negotiating on a repayment ratio.  Under GDI's
restructuring plan, a portion of its loans would be repaid
within five years, with the remainder settled by
refinancing.  "The repayment ratio is likely to be settled
in between 30 per cent to 50 per cent," a source said.
(South China Morning Post  08-Dec-1999)

GUANGDONG INVESTMENT: Non-core asset sales planned
--------------------------------------------------
In moves that may generate more than an additional two
billion yuan (HK$1.87 billion) with which to repay debts,
the board of Guangdong Investment (GDI) is expected to
announce next week the phased sale of its non-core assets
and to enter a resolution to liquidate a Singapore-
registered subsidiary, according to banking sources.

If it happens, it could mean that a resolution may soon be
in sight of the saga of troubled relationships between bank
creditors and heavily-indebted Guangdong provincial
concerns.  The subsidiary to be wound up, Funai
International, trades in electrical appliances and computer
products. It is 60 per cent owned by Guangdong (HK) Tours,
a 100 per cent subsidiary of GDI.

The idea of GDI shedding its non-core assets by disposing
of its manufacturing, finance, travel and retail units was
first introduced in a restructuring plan drawn up by
financial advisers Goldman Sachs in May.  The company's
core assets are considered to be in infrastructure,
utilities, property and hotel operations, analysts say. The
hotels it owns include the SAR's Wharney, Guangdong and New
Cathay.

A company spokesman would not comment, saying that the
restructuring of its liabilities was the subject of arm's
length talks with creditors.  Creditor banks believe that
if GDI's board makes an announcement concerning the
restructuring of its debts and finances, then an agreement
for the reorganisation of the debts of GDI's biggest
shareholder, Guangdong Development Enterprises (Holdings)
(GDE), could be made simultaneously or soon after.

They had been expecting an agreement on a reorganisation of
GDE, the Hong Kong-incorporated investment arm of the
Guangdong Government, by the end of this month or early
next year.  But one banking source close to GDE said that
they had no news of any agreement concerning the
restructuring of GDE's debts. The source said that since
the steering committee of creditors had put forward its
counterproposals last month there had been no response from
the other side.

There appears to be no concession on the hotly disputed
question of the rate of interest on preference shares to be
issued as part of the repayment package for debt owed by
GDE. It is believed that the company is sticking to the
level of one per cent interest, whereas creditor banks have
been calling for it to be raised to be on a par with Hibor
(Hong Kong Interbank Offered Rate). The Hong Kong Futures
Exchange has forecast one-month Hibor at about 5.66 per
cent in January and the three-month rate at about 6.01 per
cent.

Under the terms of a restructuring plan from last May, GDE
creditors would trade in old claims and receive preference
shares in return.  The success of the plan hinges in part
on the latest valuation of the Dongshen Water Project,
which remains confidential. According to Goldman Sachs'
Steve Shafran, the water company is to be injected into a
new provincial window firm. This will in turn sell the
project to GDI.

A source at a GDE creditor bank said many of the principal
creditor banks have written off 50 per cent of what they
are owed as bad debt.  GDE owns 40.54 per cent of GDI. Both
firms have been in financial woes since late last year.
However, unlike GDE, GDI has been paying back interest from
its resources on its loans, which totalled HK$6.33 billion
at the end of last year.  (Hong Kong Standard  08-Dec-1999)

SIMSEN INT'L: To invest $50M despite loss position
--------------------------------------------------
Metal-trader and brokerage house Simsen International plans
to invest about $50M on an online stock-trading service in
a bid to escape red ink.  Managing Director Haywood Cheung
yesterday said the company was working with Skynet, a
subsidiary of Companion Marble (Holdings), to set up the
Internet service.  The company's net loss in the year to
April 30 widened to $270.81M from $188.35M a year earlier.
Turnover in the year plunged 47.17% from a year earlier to
$887.66M.


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

DAEWOO GROUP.: Foreign debt assumption at varied discounts
----------------------------------------------------------
The Korean government has decided to impose varying
discounts to the assumption of foreign debts of Daewoo
Group's subsidiaries.

The Korean government has decided to impose an 80 percent
loss ratio on Daewoo Corp.'s non-collateral foreign debts,
much higher than expected, while setting the ratio at 66
percent for those of Daewoo Electronics.

The government earlier considered around a 75 percent loss
for Daewoo Corp. and 50 percent for other major business
units including Daewoo Electronics.  However, the local
financial authority raised the loss ratio even further
after realizing that Daewoo Corp. as well as the group's
other major operations have far lower business value.

The result of an audit on the trading and construction arm
of the troubled Daewoo Group showed that the appropriate
market value of the firm's uncollateralized debt is 18
percent to 20 percent of its face value, creditor bank
officials said.  Domestic creditors and the Corporate
Restructuring Coordination Committee, a private advisory
panel set up by local financial organizations, will propose
the price, or repayment ratio, to foreign creditors and
start talks on the firm's debt rescheduling, they said.

Meanwhile, domestic creditors' negotiations with Daewoo's
foreign creditors to include them in debt workouts for
Daewoo units are unlikely to be held within the week due to
delayed results of final due-diligence audits, government
and bank official said yesterday.

Domestic and foreign creditors began negotiations last
week, but the final audit results are necessary for further
progress in talks.  Participation from foreign creditors is
considered to be crucial in order to implement debt
workouts on key Daewoo units. Daewoo Motor Co. and Daewoo
Corp. alone take up 85 percent of Daewoo's total foreign
liabilities, amounting to $5.5 billion.

However, prospects of an agreement with foreign creditors
are dim, with creditors strongly complaining over Daewoo
Corp.'s financing of $7.5 billion for other Daewoo units,
the sources said. Most foreign creditors still argue that
they need to secure repayment of at least half of their
credits in Daewoo.  (Korea Herald  09-Dec-1999, Korea Times
08-Dec-1999)


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

RENONG BHD: Preparing non-core-asset disposal plan
--------------------------------------------------
Renong Bhd is preparing an asset disposal programme to
dispose of its non-core assets, said executive chairman Tan
Sri Halim Saad.

"Anything and everything is for sale at the right price. We
prefer cash (for the sale of our assets) because our debts
are in cash and not in shares," he said.

He said among the assets up for sale were Renong's 38.6%
stake in Time Telecommunications Bhd, a 12.4% stake in
Commerce Asset-Holdings Bhd, a 38.6% stake in Crest
Petroleum Bhd, and a 60.0% stake in Faber Group Bhd.

"It could be any of the assets .... We are deciding a lot
of things soon," Halim told reporters after the company's
AGM and EGM in Kuala Lumpur yesterday.

Renong's assets were worth RM20bil before the 1997 regional
economic crisis, but at the height of the crisis, the value
fell to about RM4.1bil. With economic recovery now the book
value of the assets adds up to RM8.4bil.

On speculation that some semi-government bodies will buy
some of Renong's assets in exchange for shares and that
these bodies will land with a stake in Renong, he said:
"This is the first time I have heard of it."  After the
disposal, Halim said, "we see Renong as a cash-rich
company."

Halim said he expects to be still in control of Renong
after the disposals, despite talk that there could be some
changes in shareholding.  He said that following the
disposals, Renong wished remain in transport, property
development, expressways, construction and engineering.
On the transport business, Halim said the government wanted
all transportation companies operating in Kuala Lumpur to
be merged.

"Currently, the light rail systems and buses running on the
same routes are competing with one another.  Once they are
merged, it will bring about greater efficiency as  well
as streamlining of resources," he said.  On who will lead
in the merged transportation entity, Halim said: "The
biggest player should rightly be the lead company."

The merger of transport companies would also include the
operator of the monorail system, KL PRT Sdn Bhd, he said,
adding that Renong was not planning to dispose of Park May
Bhd as the company complemented its Projek Usahasama
Transit Ringan Automatik Sdn Bhd (Putra) light rail transit
system by providing feeder bus service.  Putra is Renong's
wholly-owned subsidiary, while it holds 50.1% equity in
Park May.

"Our interest now is to pursue the merger of all
transportation systems in Kuala Lumpur," said Halim, who
expects this merger to be completed in six months.

Putra has defaulted on repayments of loans due to exchange
rate losses.  Halim said the passenger traffic for Putra
was still way below the company's forecast, thus making it
difficult for it to service its loans.  However, Putra is
talking to its lender to extend the repayment period of its
debts.

Asked to comment on talk that the government planned take
over Putra, Halim said: "I don't think it is the
government's intention to take over Putra."

He declined to comment on a plan to pipe water from Pahang
to Singapore, saying the proposal was still with the
Economic Planning Unit.   When asked to provide an update
on the operations of KTM Bhd, Halim said there was
improvement in freight, passenger traffic and that trains
were more punctual now.  Renong has 50% interest in Marak
Unggul Sdn Bhd, which is managing the national railway
company with some other partners.  (Star Online  08-Dec-
1999)

TIME ENGINEERING: Renong unhappy with bids,still looking
--------------------------------------------------------
Malaysia's Renong Bhd is not happy with the three bids
received for its subsidiary Time Engineering through the
Corporate Debt Restructuring Committee, and is keeping the
offer open for other interested parties.

Its executive chairman Halim Saad said Tuesday that Time
Engineering received bids from Kejora Harta Bhd, Maxis
Communications Bhd and ST Technologies from Singapore, but
that the pricing, management control and local parties
involved in the deal were not satisfactory.

"We are not happy, I think the shareholders are not happy,
we are still talking with the interested parties to
renegotiate the pricing," he told reporters after the
company's annual general meeting and extraordinary general
meeting.

He added that the company is also pressing for cash
payments for the purchase or probably share offers which
can be converted into cash so that they can make immediate
payments on their debts.  He said Time Telekom was not
bound to CDRC to conclude the sale of Time Engineering and
that other interested companies could continue to make
their bids for the company.

"Anybody can make a new bid and if the price is
higher...the CDRC is not obliged to do anything. They still
have to report to the shareholders. If the CDRC report is
the best, the shareholders will accept it," he added.

Time Engineering had sought protection under Section 176 of
the Companies Act to facilitate its restructuring scheme
and had previously been linked to several telecommunication
companies keen to acquire it.  When asked to confirm that
Canadian company, MCI Worldcom was interested in Time
Engineering, Halim declined to comment, saying that the
information was confidential. The result of the three bids
made to date will be known by January 7, 2000.  (Asia Pulse
08-Dec-1999)

TIME TELECOMMUNICATIONS: New buyer emerges
------------------------------------------
North-American Teleglobe Inc has emerged as the latest
potential buyer of Time Telecommunications Sdn Bhd (Time
Telekom), according to sources.

Teleglobe and MCI Worldcom are the two foreign players
which have expressed interest in buying Time Telekom assets
after the Corporate Debt Restructuring Committee (CDRC)
closed bids for the takeover of Time Telekom.  The three
companies that submitted bids to CRDC are Maxis
Communications Bhd, Kejora Harta Bhd and Singapore
Technologies.

Renong executive chairman Tan Sri Halim Saad when asked by
Star Business whether he will accept the proposal by
Teleglobe, said yesterday:  "You know I cannot tell you
that."

Due to the confidential agreements signed with these
foreign parties, he also declined to comment on whether MCI
Worldcom was an interested party.  Time Telekom is a
wholly-owned subsidiary of Time Engineering Bhd, which in
turn is 46.8% controlled by Renong.

Earlier, Halim told reporters after Renong's AGM and EGM in
Kuala Lumpur yesterday that the bidding for the purchase of
Time Telekom was still open as the latter's lenders were
unhappy with the bids they had received so far.

"We are asking for bids from other investors. The current
bids are still with the CDRC. They have not come up with a
solution," Halim said.  "We are not happy (with the bids
received so far). I don't think the lenders are happy."

He said the CDRC and Time Engineering should come up with a
solution on the sale of Time Telekom before Jan 7.  Time
Engineering has a court protection order from creditors
under Section 176 of the Companies Act until Jan 8. Asked
whether Time Engineering would sell Time Telekom for cash
or in exchange for shares, he said: "For us, it has to be
cash. Otherwise, how can we pay our debts?"

Meanwhile, Teleglobe officials have met senior officials of
Time Engineering several times in the past month.  It is
believed that Teleglobe is very keen on Time Telekom, and
if a deal be struck the latter's debts may be restructured.
It is also not clear at this juncture whether it will be
Teleglobe which will partner Time Telekom or Teleglobe's
shareholder--Charles Sirios's private company TIW Wireless-
-or the two.  A decision is expected in the next few weeks.

As for MCI Worldcom, sources said the company was keen on
Time Telekom's fixed network only whereas Halim wanted to
hive off the entire operations or at least bring in a
foreign partner for Time Telekom.  (Star Online  08-Dec-
1999)


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

EYCO GROUP: Hires 3rd party appraiser to aver asset value
--------------------------------------------------------
The management of cash-strapped Eyco Group of Companies has
hired a third-party appraiser to prove the value of the
group's assets to be used to pay off debts amounts to more
than five billion Philippine pesos (US$122.7 million at
PhP40.747:US$1).

In a telephone interview, an Eyco spokesperson insists the
group's assets are enough to cover the debts contrary to
reports that the value of the properties put up as
collateral amount to only PhP2.3 billion ($56.4 million).
Free assets, or assets not mortgaged, are worth between
PhP1.2 billion ($29.4 million) and PhP1.5 billion ($36.8
million).

"The PhP3-billion ($73.6 million) asset valuation referred
to by the creditors is probably based on book value only.
We have third-party appraisal reports to support the fact
that our assets are enough to cover for our liabilities,"
the spokesperson said.

The company official, however, declined to reveal the
identity of the appraiser and its valuation of Eyco's
assets but disclosed that the figure is a little below
PhP10 billion ($245.4 million).  The Eyco Group is
presently negotiating with its 28 creditor banks for a
debt-asset swap agreement to pay off ballooning
obligations. The group has selected some of its major
properties, particularly those located in Valenzuela to be
used as payment.

Among the group's secured creditors are Philippine National
Bank, Far East Bank and Trust Co., Allied Banking Corp.,
Traders Royal Bank and Westmont Bank. Other creditors
include Rizal Commercial Banking Corp., Bank of Commerce,
PCIBank, Development Bank of the Philippines, Union Bank of
the Philippines, Solidbank Corp., Land Bank of the
Philippines, Metropolitan Bank and Trust Co. and Bank of
the Philippine Islands.

The spokesperson confirmed that the management has proposed
a buy-back or redemption scheme for its factory site in
order to remain in the business.

"The proposed buy-back is premised on the following
important considerations which is of mutual benefit. The
banks are not in the real estate business, they would
naturally want cash. The proposal is just a matter of
temporarily turning over our assets to them. In the
meantime the asset belongs to them not just as collateral
but ownership. That should be fair enough," the company
official said.

Under the proposal, the management will turn over the
factory site to the banks and then rent the property to
continue operations. Upon buy-back, Eyco will pay the banks
the same value used when the property was turned over plus
interest, less lease payments which served as partial
interest payment.

Meanwhile, for other properties which will also be used as
payment in kind, Eyco is proposing a three-year right to
develop or buy-back to provide a "quicker exit" for the
creditors

"We know they want cash. So by allowing us to buy back or
develop the property, the creditors will have the
opportunity to convert their landholdings into discountable
or negotiable investments. They can actually be part of the
project to maximize return on their land investment.
Professional groups will be tapped to organize and
undertake this exit program," the spokesperson said.

The Eyco official added that the group is still optimistic
that the banks will accept the proposal which it believes
to be advantageous to all parties.  "The creditors are not
our enemies. We are not challenging them. In fact, we need
them to support us and the local appliance industry," the
spokesperson added.

The Eyco Group is comprised of Nikon Industrial Corp.,
Nikolite Industrial Corp., 2000 Industrial Corp., Trade
Hope Industrial Corp., Thames Philippines, Inc., EYCO
Properties, Inc., Nikon Land House, Inc., Integral Steel
Corp. and First Unibrands Food Corp.  Owned by businessman
Eulegio Yutingco, Eyco's core business is manufacturing
appliances such as electric fans. It is also into
manufacture of liquefied petroleum gas cylinders and snack
foods, real estate as well as printing services.  (Business
World  08-Dec-1999)

MONDRAGON LEISURE AND RESORT.: Loan payment shaky
------------------------------------------------------
There is no assurance Mondragon Leisure and Resort Corp.'s
five-billion-peso (US$122.7 million at PhP40.747:US$1) loan
will be paid in full once a new investor takes over the
215-hectare Mimosa Leisure Estate in Clarkfield, Pampanga.

CDC president and chief executive officer Rufo Colayco told
BusinessWorld the government-owned corporation will not
allow a situation where the creditor banks will not receive
anything either. CDC has been granted court approval to
take over the 215-hectare property in Clarkfield, Angeles,
Pampanga where MLRC's resort and casino stand.

"All banks have been assigned MLRC holdings, but now we're
holding the property (because) we own the land. I cannot
say that (they will be paid in full). I cannot guarantee
that. They will have to sit down with the new operator,"

Mr. Colayco said. The firm's major creditors include Asian
Bank Corp., Far East Bank & Trust Co. and United Coconut
Planters' Bank. The three banks earlier held a stock-
holders' meeting and elected a new set of officers for
MIPI. They hold 54% of the company's stocks or those of Mr.
Gonzalez. Their motion was later rejected by the Securities
and Exchange Commission (SEC).

CDC is now ready to accept proposals of interested
investors in Mimosa. This, after it has completed its
takeover of the estate "as far as the courts are
concerned."

Mr. Colayco said prominent personalities who have expressed
initial interests are businessmen Dante Tan and William
Gatchalian.  Mr. Colayco said CDC is now hunting for a new
investor because CDC does not intend to "permanently" run
Mimosa.  He also said it is still possible for MLRC to buy
back the estates if investment funds are already available.
MLRC president Jose Antonio Gonzalez has asked CDC to
postpone any action until January 15, saying a $200-million
refinancing package is on the way by then.

As this develops, MLRC has petitioned the Angeles Regional
Trial Court for the suspension of the writ of execution to
prevent CDC from completely taking over the property.
The court has yet to issue a decision on the plea, but the
sheriff who administered the takeover has submitted a
report that said the writ has been "fully satisfied."

"Upon actual and physical verification on the leased
premises by MLRC from the CDC at Clarkfields, Pampanga, on
December 6, 1999, it is hereby certified and confirmed that
MLRC had abandoned, left and vacated the said premises in
favor of CDC," Sheriff Hilaro C. Salvador said in his
report to the court.  (Business World  08-Dec-1999)

UNIWIDE GROUP: SEC likely to extend payment moratorium
------------------------------------------------------
The Securities and Exchange Commission will likely extend
by another 60 days the debt reprieve it granted to the
beleaguered Uniwide Group of Companies.  An SEC official
said the Commission was inclined to approve Uniwide's
request for a prolonged suspension of all claims against
it.

"We will extend the suspension order because Uniwide is in
a critical stage talking to its creditors," the SEC
official said. He said the extension would also allow the
Commission to assess the group's viability.

The Uniwide Group is asking regulators to extend by two
more months the SEC order suspending all creditor claims
against it. It said the SEC needed more time to act on the
proposed rehabilitation plan for the group.  This is the
third time Uniwide has sought debt-relief extension. The
SEC had earlier extended for 60 more days-or until Dec. 9-
its payment-suspension order to allow Uniwide's interim
receiver to assess the viability of the rehabilitation
plan.

The Uniwide Group comprises Uniwide Sales Inc., Uniwide
Holdings Inc., Naic Resources and Development Corp.,
Uniwide Sales Realty and Resources Corp., First Paragon
Corp., and Uniwide Sales Warehouse Club Inc.  Its proposed
rehabilitation plan would reduce its total outstanding bank
debt of P6.91 billion through payment-in-kind arrangements,
restructure its remaining liabilities, and give it at least
P1.5 billion in fresh equity from investors.

Owned by businessman Jimmy Gow, the Uniwide Group sought a
debt payments reprieve in June on its P11.1-billion debt
due to severe liquidity problems resulting from an ill-
timed expansion and a failed diversification program.
Of the P1.5-billion new capital, Uniwide said it would use
P1 billion to replenish store stocks and the rest for
capital expenditures.

The group is negotiating with businessmen who are said to
be interested in its warehouse clubs and commercial
centers. El Shaddai founder Mariano Velarde and shopping
mall magnate Henry Sy were earlier reported to have
expressed interest in investing in the company.  Uniwide's
properties that may be used to repay the group's debts have
been appraised at P6.09 billion. That excludes the P1.8-
billion worth of properties paid to Equitable Bank.

The receivership committee said Uniwide's positive net
worth of P2.5 billion and its favorable retail business
made the retail chain worthy of a supported rehabilitation
program. "This financial position affirms that the problem
at hand is one of liquidity constraints as opposed to
insolvency," it said.  The Uniwide Group's financial
troubles were traced to an ill-timed diversification into
property development and to an extremely ambitious
expansion of its retail business.

Of Uniwide's P11.1-billion debt, P6.95 billion is owed to
banks and the rest to suppliers.  The group's creditor
banks include Equitable Banking Corp. (P1.73 billion),
Rizal Commercial Banking Corp. (P1.34 billion), United
Coconut Planters Bank (P995.5 billion), Philippine National
Bank (P772.52 million), Bank of the Philippine Islands
(P610.83 million), Land Bank of the Philippines (P588
million), International Exchange Bank (P100 million),
Allied Bank (P262.5 million), ING (P100 million), Asian
Bank (P200 million), East West Banking Corp. (P100
million), East Asia (P44.59 million), Metrobank (P53.5
million), and PBCom (P48.5 million).  (Manila Times  08-
Dec-1999)


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

THAI AIRWAYS: To refinance aircraft-purchase debt
-------------------------------------------------
Thai Airways won cabinet approval yesterday for a plan to
raise new local and foreign long-term loans to refinance
debt on its aircraft purchases.

The state carrier would be allowed to borrow up to 10.5
billion baht in long-term domestic loans to help refinance
the purchase of an Airbus 330-300 and a Boeing 747-400.
Another $576 million in long-term loans would be arranged
to finance five other aircraft purchased from Airbus and
Boeing.

Barclays Asia Ltd has been retained to help arrange
financial leases for the five aircraft, with guarantees
provided by the US Exim Bank and Britain's Export Credits
Guarantee Department.  THAI, under its 1996-2000 purchasing
plan, has bought 21 new aircraft and taken delivery of 19.
Long-term funding has already been secured for 12 of the
purchases, with the other seven financed through internal
capital and short-term loans from the aircraft
manufacturers.  (Bangkok Post  08-Dec-1999)

THAI OIL CO.: Dec. 15 final talks on rehab plan
-----------------------------------------------
Thai Oil Co has set December 15 for final talks on
repurchasing debts from creditors who want to leave the
company's debt restructuring plan.

According to Chainoi Puenkosum, deputy managing director
for finance at Thaioil, the debts involved total US$258
million.  The company would offer to repurchase the debts
at 55 cents per dollar, he said, adding he expected no
problem as negotiations had been held several times.
If the talks went as planned, the company's restructuring
plan would be signed in February, he said.

But if details were not settled, then Thaioil would have to
renegotiate with all of its creditors.  Although the
repurchase would be at a 45% discount, Mr Chainoi said the
creditors who wanted to exit the programme would still make
gains.

"They are investment banks who purchased the debts from the
company's original creditors some time ago at only 25 or 30
cents per dollar," he said.

Chulchit Bunyaketu, managing director of Thaioil, said the
fire at Thaioil's tank farm in Si Racha last week would not
affect the company's debt restructuring plan.  Under the
plan, Thaioil's debt will be cut to $1.38 billion from $2.2
billion and its debt-to-equity ratio will fall to 2.8 times
from six.

The Petroleum Authority of Thailand, its major shareholder,
will inject $250 million-$149 million in cash and $101
million by swapping trade credits for equity. Thaioil's
creditors will also convert $250 million of debts into
equity. The PTT's funds will be reserved for the repurchase
of debts.

In a related development, an agreement by PTT Exploration &
Production Plc to purchase a 26% stake in Thaioil Power, a
wholly-owned affiliate of Thaioil, won cabinet approval
yesterday.  The purchase is worth $35.88 million and is
part of a strategy by PTTEP to diversify into energy-
related businesses.  Thaioil Power has two major ventures:
a 117.5-megawatt small power producer (SPP) plant, and a
56% stake in Independent Power (Thailand), sponsor of a
700-MW station.  (Bangkok Post  08-Dec-1999)

THAI PETROCHEMICAL INDUS.: Two creditors holding up rehab
---------------------------------------------------------
The International Finance Corporation and the US Export-
Import Bank were holding back progress on restructuring
Thai Petrochemical Industry's $3.5-billion debt, the
company charged yesterday.

Prachai Leophairatana, TPI chief executive, said the two-
year talks with creditors had stalled after the two foreign
creditors rejected a proposed amendment to the
restructuring plan.  He said that given the stance taken by
creditors, it was unknown when the firm's restructuring
would be completed.

In contention was a proposal by TPI to raise $1 billion in
new funds and increase existing capital of $4.4 billion,
but the steering committee representing TPI's 150 local and
foreign creditors said on Friday the amendments and capital
increase details should be considered only after the
existing restructuring framework be finalised.

"The steering committee believes that it is unfortunate
that TPI has decided not to honour its publicly confirmed
commitment to finalise the legal agreement to get on with
restructuring," a committee statement said.

Creditors said the fundamentals of the restructuring should
be agreed to first, and that details on the capital
increase could be finalised later.  The steering committee
said "alternatives"-including possible legal action-could
be taken if talks were not concluded by January 17, one
creditor said.

Mr Prachai blasted the creditors for opposing the company's
recapitalisation amendments. "We will raise capital to help
repay creditors. I don't understand why they would turn
down the offer. It might be that the two [IFC and US Exim
Bank] might have plans to close the firm," he said.

Mr Prachai said TPI's operations were solid, with generated
cashflow of $6 billion per year.  The company had proposed
on Dec 1 that it would raise $1 billion in new capital in
2000, instead of 2002 as earlier proposed by creditors.
TPI also said the capital increase should be made in a
private placement, with the company's book value-currently
$1 per share-used as a floor price for the new issue.

Mr Prachai said TPI was unable to accept the condition
imposed by creditors to sign the restructuring agreement
before recapitalisation, saying that if it agreed, it could
cause difficulties later if creditors changed their stance.

"We are very disappointed with the stance taken by the
steering committee. In addition, we reiterate that in both
TPI and TPI Polene's restructuring plans, there is no need
to change management."

The steering committee said the counter-offer proposed by
TPI made "substantial changes to many of the terms the
company had agreed to earlier this year. TPI's suggested
amendments may lead to lengthy renewed negotiations. The
steering committee believes it is in TPI's and the
creditors' mutual interests to proceed with the
restructuring as agreed."

TPI represents the country's largest non-performing loan,
with more than half the outstanding debt owed to Thai
creditors.  Mr Prachai said creditors had split into three
groups-Thai institutions such as Krung Thai Bank and Bank
of Ayudhya, which the firm believed were amenable to
amendments and which had supported TPI Polene's
restructuring plan.  Second were creditors such as Korea
Export-Import Bank and Germany's KfW, which Mr Prachai also
believed were open to negotiations. Third were creditors
such as IFC and US Exim Bank.

Mr Prachai believed he would be able to rally 80% of the
creditors to approve the company's proposal, sufficient to
have the overall restructuring plan approved.  The steering
committee represents financial institutions that hold more
than 68% of TPI's debt.  It includes ANZ Bank, Bangkok
Bank, Bank of America, Bank of Ayudhya, Citibank, US Exim
Bank, International Finance Corporation, KfW, Krung Thai
Bank, Sanwa Bank, Standard Chartered Bank and Korea Exim
Bank.

Shares of TPI closed yesterday on the Stock Exchange of
Thailand at 18 baht, unchanged, on light turnover worth
7.24 million baht.  (Bangkok Post  08-Dec-1999)

TPI POLENE: Rehab plan going to Bankruptcy Court
------------------------------------------------
The Chief Executive Officer of Thai Petrochemical Industry
Prachai Leophairatana said yesterday at a press conference
that the debt restructuring plan for TPI Polene will need
to go to the Central Bankruptcy Court for settlement.

Prachai said even though 60-70 percent of TPIPL creditors
are in favor of approving the company's loan restructuring
proposals, but the the voting in accordance with the debt
restructuring law needs 100 percent agreement.  He said he
was quite sure that the voting on whether or not to approve
TPIPL's loan restructuring on December 16 would not receive
100 percent approval.

Prachai said he anticipated the maximum number of votes
from TPIPL's creditors would not be more than 90 percent.
TPIPL's proposed debt restructuring plan involves a capital
increase of US$270 million, plus a US$240 debt-to-equity
swap. This debt restructuring formula will make debt-to-
equity ratio of 7.8: 1, increasing the company's debt
payment capacity substantially, Prachai explained.

According to this loan restructuring plan, the shareholding
percentage held by the Leophairatana family will be reduced
from 49 percent to 30 percent.  (Business Day  08-Dec-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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