TCRAP_Public/991213.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, December 13, 1999, Vol. 2, No. 242


* C H I N A  &  H O N G  K O N G *

CHI CHEUNG INVESTMENT: White knight proposes rehab plan
CHINA MOTOR VEHICLE E&D CO.: Facing winding up petition
CHINNEY INVESTMENTS: Posts interim loss
FAMEWORLD ENGINEERING LTD: Facing winding up petition
FORTUNE OIL: Defending $21.6M lawsuit by Sinochem
FWXPRESS HONG KONG LTD: Facing winding up petition
HERO DATA INVESTMENTS LTD: Facing winding up petition
HON KWOK LAND INVEST.: Posts six-month operating loss
HUNG KI PIECE GOODS LTD.: Facing winding up petition
INTERFORM CERAMICS TECH.: Posts narrower six-month loss
NEW WORLD CYBERBASE: Posts narrower six-month loss
ONE NINE HOLDING LTD.: Facing winding up petition
SPORTS INT'L (GROUP) LTD.: Facing winding up petition
TIM KEE GODOWN CO.: Facing winding up petition

* I N D O N E S I A *

BAKRIE GROUP: Admits having received Texmaco-type loans
BAKRIE GROUP: Restructures its debts
BANK PUTERA MULTIKARSA: Could be nationalized

* K O R E A *

DAEHAN INV.TRUST: Now insolvent, capital infusion to come
DAEWOO GROUP: Foreign creditors reject discount buyout
DAEWOO MOTOR: Big 3 eyeing it now for acquisition
DAEWOO MOTOR: Main creditors considering auction block
KOREA EXCHANGE BANK: Former officers sanctioned
KOREA INV. TRUST: Now insolvent, capital infusion to come
PEACE BANK: Former officer sanctioned

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

UNIWIDE GROUP: SEC needs more time to study rehab plan

* T H A I L A N D *

MORAKOT INDUS.: Posts big loss between July and November
PIZZA PLC: Pizza Hut contract uncertainty drops stock price
SUN TECH GROUP: SET puts securities in rehab category
THAI OLEFINS PLC: Creditors agree in principle with rehab
THAI PETROCHEMICAL INDUS.: Vows battle with creditors
VANACHAI GROUP: Raising capital as part of debt-pay plan

C H I N A  &  H O N G  K O N G

CHI CHEUNG INVESTMENT: White knight proposes rehab plan    
Far East Consortium International has proposed injecting
$30 million in cash and $200 million in assets into Chi
Cheung Investment in a plan to take over and restructure
the troubled company.

Far East wants to inject its interest in a 44 kilometre
toll road in Zhengzhou, Henan province, and other assets
into Chi Cheung. Far East is the third suitor to begin a
takeover bid for Chi Cheung, following an aborted offer by
a consortium led by Peter Cheng Kar-shing and another by
Chinese Estates (Holdings). Far East managing director
Michael O'Young said the stock exchange had indicated the
proposal might constitute a spin-off of the toll-road
project by the company or a new application for a listing
of Chi Cheung.

A Far East spokesman said the company planned to turn Chi
Cheung into its property and infrastructure arm after the
restructuring. However, he refused to disclose details of
any other asset injection.  The spokesman said the company
was interested in Chi Cheung's property portfolio, which he
said had great potential for development.

Far East last year bought a $173 million luxury residential
project in Kowloon Tong from Chi Cheung for $127 million.  
The Far East spokesman said Chi Cheung ran into financial
trouble mainly because of the abrupt plunge in the property
market following the regional currency turmoil, rather than
any management problem.  The takeover proposal was at a
preliminary stage and still needed clearance from Chi
Cheung's creditors, he said.

Chi Cheung Investment cut its losses to $84.21 million for
the six months to June 30 from $316.3 million for the same
period last year. Chi Cheung shares traded at 17 cents
before the stock was suspended on Wednesday.  (South China
Morning Post  10-Dec-1999)

CHINA MOTOR VEHICLE E&D CO.: Facing winding up petition    
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 22 on the petition of
The Hong Kong Land Property Company Limited for the winding
up of China Motor Vehicle Economic & Development Co., Ltd.
A notice of legal appearance must be filed on or before
December 21.

CHINNEY INVESTMENTS: Posts interim loss
Garment manufacturer and property developer Chinney
Investments sank into the red during the interim that ended
on September 30 following a dilution in the value of its
holdings in subsidiary Hon Kwok Holdings.  The company
suffered a net loss of $15.13M during the period after
posting exceptional loss of $65.97M.  

James Wong Sai-wing, chairman of Chinney and Hon Kwok, said
Chinney suffered a non-cash loss of $62.54M from a dilution
of the company's share of net assets in Hon Kwok, which
placed 185M new shares in July 1999 at $0.75 apiece, almost
50% lower than its net asset value of $1.43 per share.  
Chinney's interim turnover fell 13% to $755.03M from
$871.44M in 1998.  Interim operating loss reached $66.68M,
compared with an interim operating profit of $111.49M in
the same period last year.  

Basic loss per share over the interim period was 2.7 cents,
compared with a basic earnings of 8.6 cents per share in
1998.  Chinney also incurred a $3.43M loss with the
disposal of interest in subsidiaries.

FAMEWORLD ENGINEERING LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 22 on the petition of
Ho Chat Mui for the winding up of Fameworld Engineering
Limited. A notice of legal appearance must be filed on or
before December 21.

FORTUNE OIL: Defending $21.6M lawsuit by Sinochem          
Oil-trader Fortune Oil has become embroiled in a bitter
US$21.6 million legal battle over unpaid debt with
mainland-based Sinochem, one of the mainland's three big
oil trading groups.

Sinochem said its London office was suing Hong Kong-based
Fortune both in London and in Hong Kong for $15.7 million.  
A five-day hearing for the London case, in which Sinochem
is claiming $12 million, is scheduled to take place in the
commercial court at the Royal Courts of Justice from
Monday. A separate writ for $3.7 million has been issued in
Hong Kong, where a court date is still awaited.

Fortune yesterday said it intended to defend itself
vigorously against the cases, which it believed it was not
liable to answer. The disputes relate to Fortune's now
defunct oil trading joint venture, Chester International
Pacific, in which it owned 51 per cent, with the remaining
49 per cent owned by Far East Petroleum, a subsidiary of
Fortune, a spokesman said.

Fortune claims that last year Sinochem London entered into
a transaction with Chester for certain purchases of oil,
now worth $12 million, a deal in which Fortune says it was
not a party. Sinochem has made an arbitration application
in London for a decision on who is liable for the defaulted
$12 million payment. Fortune said it was also facing a $3.7
million writ from Sinochem, which has been lodged in Hong
Kong, where again Fortune is disputing its liability.

In a counter-claim, Chester's other big shareholder, Far
East Petroleum, has launched a $5.9 million claim against
Sinochem, relating to funds paid by Far East Petroleum to
Sinochem, a Fortune spokesman said.  A Sinochem London
official yesterday called the claim by Far East Petroleum
"nonsense" and "groundless...That is a distraction from the
main action in London," he said, referring to the Monday
court hearing.

The disputes mark a considerable souring of relations
between Sinochem and Fortune, which has been eager to
foster good relations on the mainland in a bid to exploit
the expanding mainland demand for imported oil.  Sinochem
is a key player in oil trading, as one of the only three
named mainland companies allowed to trade imported oil,
alongside Unipec, or China International United Petroleum
and Chemical, and Chinaoil, or China United Oil Corp.

The Sinochem legal actions come as Fortune has been reeling
under the weight of bad debt, which forced its former chief
executive, Barry Cheung Chun-yuen, to resign earlier this
year.  Fortune, which is listed in London, also suffered
badly after Beijing imposed a ban on imports of diesel and
petrol, which severely hampered the group's trading
activities.  Yesterday, Fortune expressed confidence in its
ability to defend the legal actions, and said it had been
advised that the company "has strong defences against any

"Whilst the directors of Fortune would have liked to settle
these matters with Sinochem without recourse to these
procedures they remain confident that no additional
provisions are required by Fortune," Fortune said.  (South
China Morning Post  10-Dec-1999)

FWXPRESS HONG KONG LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for February 9, 2000 on the
petition of International Moving Service Limited for the
winding up of FWXpress Hong Kong Limited (formerly known as
Up Fortune International Limited). A notice of legal
appearance must be filed on or before February 8.

HERO DATA INVESTMENTS LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 12, 2000 on the
petition of Chan Mou Ngan for the winding up of Hero Data
Investments Limited. A notice of legal appearance must be
filed on or before January 11.

HON KWOK LAND INVEST.: Posts six-month operating loss
Despite posting a modest rise in its six-month profit, to
$42.9M from $38.42M a year earlier, Hon Kwok Land
Investment still recorded an operating loss of $42.59M
during the six months to September 30, against a loss of
$20.77M the corresponding period last year.  

Managing Director Herman Fung said the loss was mainly due
to a lack of property sales, interest expenses and
administration costs.  He said there was no development
project completed during the period, which also hit the
property income booked in the period.  Basic earnings per
share were 3.9 cents, up from 3.7 cents. Directors did not
declare an interim dividend.  

HUNG KI PIECE GOODS LTD.: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 12, 2000 on the
petition of Lee Yuk Yi for the winding up of Hung Ki Piece
Goods Limited. A notice of legal appearance must be filed
on or before January 11.

INTERFORM CERAMICS TECH.: Posts narrower six-month loss
Interform Ceramics Technologies posted a $67.39M
attributable loss for the six months ended September 30,
compared with a $421.52M loss in the same period last year.  
Turnover was $101.6M.  No interim dividend is recommended.

NEW WORLD CYBERBASE: Posts narrower six-month loss
New World Cyberbase's half-year losses to September 30
narrowed to $15.85M from $63.77M a year earlier, helped by
surging turnover.

The technology arm of blue-chip New World Development
reported that turnover jumped 90.5% from a year earlier to
$46.51M.  The company said revenue was bolstered by income
of $16.4M from the disposal of two properties. The company
registered a loss per share of 1.8 cents, against an
adjusted loss last year of 11.4 cents per share. No interim
dividend was declared, the same as last year.

ONE NINE HOLDING LTD.: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 19, 2000 on the
petition of Lau Chi Chiu for the winding up of One Nine
Holding Limited. A notice of legal appearance must be filed
on or before January 18.

SPORTS INT'L (GROUP) LTD.: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 26, 2000 on the
petition of Lau Ming Chu for the winding up of Sports
International (Group) Limited. A notice of legal appearance
must be filed on or before January 25.

TIM KEE GODOWN CO.: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 29 on the petition of
Omaha Investments Limited for the winding up of Tim Kee
Godown Company Limited. A notice of legal appearance must
be filed on or before December 28.


BAKRIE GROUP: Admits having received Texmaco-type loans    
Indonesia's Bakrie Group conglomerate said yesterday it had
received loans with a pre-shipment facility in 1997,
similar to loans extended to Texmaco Group, which has
sparked a fresh banking scandal.

"Bakrie obtained the pre-shipment facility through two
state-owned banks -- US$38 million (S$63.8 million) was
obtained from Bank BNI and 381 billion rupiah (S$89.5
million) from Bank Exim," Bakrie spokesman Lalu Mara
Satriawangsa said.

Bank Exim (Bank Ekspor Impor Indonesia) is being merged
with three other state-owned banks into newly created Bank
Mandiri.  Mr Satriawangsa said the loans, obtained in late
1997, had become bad debts and had been transferred to the
Indonesian Bank Restructuring Agency, along with the
group's other debts and were now undergoing restructuring.
Bakrie said in a statement: "The pre-shipment facility was
originally designed for providing fresh funds to boost
Bakrie Group's exports, but Bank BNI used the facility to
refinance a normal commercial loan in November 1997 worth
200 billion rupiah."  (Reuters, Straits Times  10-Dec-1999)

BAKRIE GROUP: Restructures its debts
Well-diversified Bakrie Group, represented by PT Bakrie
Nirwana Resort (BNR), has restructured its debts worth US$
161.4 million and Rp40 billion to the Indonesian Bank
Restructuring Agency (IBRA), surrendering 51 percent of its
shares to the agency, a spokesman said.

"Fifty-one percent of BNR's stocks now belong to IBRA,"
Bakrie Group spokesman Lalu Mara Satriawangsa said in a
statement issued Thursday.

Besides the debt-to-equity swap, the private company had
also re-scheduled 32 percent of its main debts for 10
years, and 50 percent of its interest arrears for five
years, he said.  But Bakrie Group would still have the
opportunity to manage the company for the next five years
based on a management performance contract with the agency.

"We also have the first rights to buy back our stocks from
IBRA," he said.

Besides BNR, other companies under Bakrie Group would also
sign agreements on debt restructurization with IBRA.
They are PT Seamless Pipe Indonesia Jaya (with a US$ 116
million debt), PT Bakrie & Brothers (US$ 113.2 million) and
PT Boganandini (Rp227.3 billion).

"Specially in the case of PT Bakrie and Brothers, we have
concluded agreements with local and foreign creditors that
the company's debts will be setlled through debt-to-equity
swaps," he said.  (Asia Pulse  10-Dec-1999)

BANK PUTERA MULTIKARSA: Could be nationalized
Bank Indonesia said Bank Putera Multikarsa, a subsidiary of
troubled Texmaco Group, could be nationalised if it failed
to come up with Rp200 billion (US$ 28.6 million) in fresh
funds to cope with its liquidity problems.

Syahril Sabirin, central bank governor, however, gave the
bank no deadline.  The bank had been weakened three days
ago by a run on it.  The run was triggered by rumours that
the bank would be taken over to repay debts of the Texmaco
Group, which is facing a huge credit scandal.  Sabirin said
it should not be too difficult for the bank to raise the
money.  (Asia Pulse  10-Dec-1999)


DAEHAN INV.TRUST: Now insolvent, capital infusion to come
KOREA INV. TRUST: Now insolvent, capital infusion to come
The Financial Supervisory Commission (FSC) yesterday
designated Korea's two largest investment trust companies
(ITCs) - Korea Investment Trust Co. and Daehan Investment
Trust Co. - as insolvent financial institutions and ordered
them to write down their capital ahead of a planned
injection of public money.

The ITCs' paid-in capital will then be reduced to 10
billion won each through a 20-to-1 reverse split of shares,
the FSC said.  In addition, the commission requested the
Ministry of Finance and Economy to infuse 600 billion won
into Korea Investment Trust and 300 billion won into Daehan
Investment Trust.  The government will nationalize the
troubled asset management companies next Friday by
injecting its equity holdings in state-owned enterprises
into them.

Korea and Daehan investment trust firms will receive an
additional 1.4 trillion won and 700 billion won,
respectively, from government-funded banks by the end of
the year.  The FSC will also appoint a new management team
for the two insolvent companies in the middle of this
month.  A recent due-diligence audit by the FSC found debts
of Korea and Daehan exceeded their assets by 2.4 trillion
won and 890 billion won, respectively.  (Korea Herald  10-

DAEWOO GROUP: Foreign creditors reject discount buyout
Daewoo's workout plan has come up against its worst hurdle
yet as the group's foreign creditors have turned down the
discounted buy-out of Daewoo loans proposed by local

According to the Asian Wall Street Journal Friday, the
foreign creditors rejected the local creditors' offer in a
letter stating their intention not to enter negotiations on
the proposal that local creditors purchase Daewoo's foreign
loans at marked-down prices. The newspaper reported that
the foreign creditors rejected the proposal, saying that
the discount ratios applied to the loans had been based on
improperly conducted analyses of the debts.

A government official commenting on the newspaper report
said the government is contacting the foreign creditors for
its official stance.  The government official said the
discount ratios were based upon thorough asset
reevaluations and that preferential treatment has not been
given to either local or foreign creditors.

Observers said if the standoff between the two creditor
groups continues, it will not be possible to avoid placing
Daewoo Corp. under court receivership. Observers predicted
that if this occurs, Daewoo Motor will also be pulled under
court control as existing transactions between the two
Daewoo flagships are massive, amounting to trillions of
Korean won.  (Digital ChosunIlbo  10-Dec-1999)

DAEWOO MOTOR: Big 3 eyeing it now for acquisition
Ford Motor, the world's No.2 automaker, has conveyed its
opposition to the negotiated sale of Daewoo Motor to
General Motors, while Daimler-Chrysler is showing interest
in the troubled Korean carmaker, officials of creditor
banks and industry sources said yesterday.

According to officials of the Daewoo Motor's main creditor
Korea Development Bank, Daimler-Chrysler asked for a
meeting with the KDB concerning the status of negotiations
with GM, whose exclusive rights on the purchase of Daewoo
Motor expired on Nov. 3 after two years of talks had failed
to produce a tangible outcome.

"We haven't met them yet so it is premature to determine
whether they are interested in the takeover of Daewoo Motor
or not," a KDB official said. "But at the least Daimler-
Chrysler is eager to know what is going on with Daewoo
because a takeover by either GM or Ford, both being rivals
to it on the global stage, would likely lead to changes
that will affect it also."

Domestic auto industry experts said that after the workout
plan is implemented on Daewoo Motor, those interested in
Daewoo Motor will come out of the closet and make their
bid. Daewoo Motor is one of the group's affiliates that has
been selected for debt restructuring. As of the end of last
year, its debts were estimated at 10 trillion won with
assets amounting to 4 trillion won.

Meanwhile, Ford made clear its opposition to its rival GM's
negotiated purchase of Daewoo Motor, industry watchers

"Ford sees it as completely out of line with the industry
norm to have GM take over a company the size of Daewoo
Motor while excluding others, I understand," one industry
watcher said. "This Ford message was delivered to Hyundai

In its internal study, Hyundai concluded that GM's takeover
of Daewoo Motor will hurt its business greatly. Albeit
Hyundai officials didn't confirm the reported contents of
the study, it projects that Hyundai's domestic market share
combined with that of its sister firm Kia Motors, currently
at 75 percent, would be halved once the synergy of GM and
Daewoo takes effect. Hyundai's loss of its dominant market
share would pose a make-or-break threat to Hyundai
considering its thin profit level and excess capacity
resulting from the dwindled market share.

Ford recently contacted the KDB through its envoy who led
an unsuccessful bid for Kia Motors last year, jacking up
speculation that Ford might show its intention to
participate in an open international bidding for Daewoo
Motor should the creditors and the government decide to
ditch its protracted negotiations with GM and hold a

KDB officials said that they saw Ford's recent approach
tantamount to its show of interest in taking over Daewoo
Motor.  In another related development, GM decided in its
board of directors' meeting to push ahead with its takeover
of Daewoo Motor. A representative of GM Korea made positive
remarks when questioned about the deal. He told media that
this board's decision is meaningful in that not only the
management but other key GM decision makers are in favor of
the Daewoo deal.

But whether this decision will lead to an immediate action
remains to be seen considering that GM couldn't seal the
deal for the past two years during which it was given an
exclusive opportunity to take over Daewoo.  (Korea Times  

DAEWOO MOTOR: Main creditors considering auction block     
With two or three U.S. auto giants interested in South
Korea's Daewoo Motor, local creditors of the ailing
automaker are likely to put it on the international auction
block, its main creditor said on Saturday.

A senior official with Korea Development Bank (KDB) said
there was now a strong possibility of holding an auction
with the termination of General Motors Corp's exclusive
takeover talks in November.  General Motors, the world's
biggest automaker, said it remains interested in talking to
Daewoo Motor about a tie-up and Ford Motor Co. has also
expressed interest in exploring the possibility of an
affiliation with Daewoo.

"For the sake of fairness and transparency, an
international auction looks the best way to settle the
Daewoo Motor issue," said the KDB official, who is
overseeing Daewoo Motor's debt rescheduling plan. "Ford
officials recently visited us and said they wanted to take
part in an international tender if local creditors decided
to hold one."

Daewoo Motor, the automaking arm of the disintegrating
Daewoo Group, has liabilities totaling $16.4 billion,
against $11.3 billion of assets.  But any resolution of
Daewoo Motor's fate, including debt workout programs and
sell-off schemes, required the endorsement of foreign
creditors, the KDB official said.

"Foreign creditors' objections could still derail all the
programs for Daewoo Motor given the carmaker's heavy
exposure to foreign loans," he said.

Daewoo Motor's foreign loans were estimated at $1.8
billion, he said.  In August, GM and Daewoo Motor signed a
memorandum of understanding on a strategic alliance after
almost two years of discussions. But the two failed to
reach a final agreement on GM buying a stake in the Korean
automaker.  Analysts said the international tender, if
creditors agreed to hold one, could delay settlement of
Daewoo Motor's problems.

"The idea of opening an auction looks aimed at raising the
value of Daewoo Motor," said Ji Sung-chul, an analyst at LG
Securities. "But it clouds the prospects that the Daewoo
Motor issue will end in the near future because of too many
complications in the process.

Some analysts said creditors would still prefer to be
talking with General Motors as a single negotiating partner
because of a previous long-term partnership with Daewoo
Motor.  GM and Daewoo Motor ended a 15-year cooperation
agreement in October 1992 after having frequently collided
over marketing strategy, market share and investment plans.

"The two companies can be good partners because of their
past cooperation," Ji said.

KDB officials said detailed future plans for Daewoo Motor
will be available after the carmaker signs on to a debt
workout program to be prepared by creditors by the end of
the year.  Late in November, local creditors of unlisted
Daewoo Motor agreed on a debt rescheduling plan which
called for a temporary freeze on debt principal.  (Reuters  

KOREA EXCHANGE BANK: Former officers sanctioned
PEACE BANK: Former officer sanctioned
Chang Myung-sun and Hong Se-pyo, former presidents of Korea
Exchange Bank (KEB), and Kim Kyung-woo, president of Peace
Bank, were yesterday disciplined for unfair practices, such
as illegal lending and unfair rights issue.

The Financial Supervisory Service (FSS) issued warnings
against a total of 53 former and current executives and
employees of KEB responsible for losses worth 357.3 billion
won from illegal lendings and purchases of foreign bonds
and other illegularities.  The FSS conducted a
comprehensive inspection into KEB's books covering the
period Aug.20-Sept.17.

Former KEB president Chang Myung-sun and former vice
president Park Joon-hwan were issued stern warnings and 11
former executives and employees, including former president
Hong Se-pyo and former executive managing director Cho
Sung-jin, were issued light warnings.  The FSS also
recommended that the KEB reprimand five current employees.

Kim Jin-bum and Cha Sung-chul, former presidents of Korean
French Banking Corp., which merged with KEB, also received
high-degree warnings.  FSS officials said that they were
discovered to have issued loans worth 159.8 billion won, by
extending 166.8 billion won and $35 million to 26 companies
which were suspected in their ability to repay the loans.

They are also responsible for 70.7 billion won of losses,
by unfairly lending $124 million worth of offshore funds to
insolvent foreign firms, and another $171 million of
losses, by purchasing Russian bonds. The losses were
aggregated at 357.3 billion, the financial watchdog said.
The FSS also issued a low-degree warning against Peace Bank
president Kim due to unfair trading practices such as the
extension of loans to institutional investors so that they
could take part in the rights issue the bank conducted in
October last year and this May.

Former Peace head Park Jong-dae was issued a high-degree
warning and seven other former executives low-degree
warnings for having unfairly guaranteed a fixed yield ratio
to investors, extended loans to troubled corporations and
offered unfair card loans.  The FSS also issued light
warnings against four former and current executives of Hana
Securities for having discounted brokerage fees through
contracts on investment consulting with disqualified
consultants.  (Korea Times  10-Dec-1999)


UNIWIDE GROUP: SEC needs more time to study rehab plan
Creditors of retail and property developer Uniwide Group of
Companies continue to hound the ailing firm's debt
rehabilitation plan as the Securities and Exchange
Commission (SEC) bids for more time to study its approval.

The Gow-owned Uniwide group suffered financial problems as
a result of the recent economic crisis. The firm's total
debts which stood at over 11.1 billion Philippine pesos
(US$272.5 million at PhP40.724:US$1) prompted the company
to ask the SEC to allow suspension of debt payments and
approval of a debt-rehabilitation plan. The plan was
submitted to the corporate watchdog last October.

In a motion submitted to the SEC yesterday, creditor Bank
of the Philippine Islands (BPI) opposed Uniwide's
rehabilitation plan saying the latter is vague and contains
repayment terms which are unreasonable and way below the
standards of sound banking practices.  BPI said the plan is
vague "because while it emphasizes the need for fresh
capital infusion of at least PhP1 billion ($24.5 million),
it fails to identify the source of the new money."

BPI said such sketchiness dictates creditor banks not to
agree to the plan unless the identity of the new investor
or prospective owners be known.  Under the plan, Uniwide's
receiver committee said that a fresh capital of PhP1.5
billion ($36.8 million) is needed to pay Uniwide's
liabilities.  In its motion, BPI said that while Uniwide
declared in its plan that new capital should come at least
two months before the Christmas season, the cash-strapped
company did not disclose any details of discussions with
possible investors.

"This may lead one to conclude that no such offer to infuse
(fresh capital) was ever made," BPI said.

BPI is also opposing the plan's supposed unreasonable terms
in repayment of loans which is nine years at a fixed
interest rate of eight percent per annum.  Uniwide's other
creditor contractors -- Raycor Aircontrol Systems, Inc.,
Top Brass Fabricators, OIC Construction and Development
Corp. and Ayin Contractor and Trading Corp. -- are also
asking the corporate watchdog to revise Uniwide's
rehabilitation plan "in order to effect a more feasible and
fair payment to contractors."

In a motion filed at the SEC last December 8, the
contractors claimed that Uniwide's rehabilitation plan is
one sided and does not place all creditors in equal
footing. The contractors said Uniwide's rehabilitation plan
favors creditor banks by treating the latter as "first-
class creditors by having their claims paid in full through
dacion en pago while other creditors are left with only a
promise that they will be paid."

The contractors lamented that while creditor banks will be
paid at once after the infusion of new capital, contractors
are promised to be paid only with leftovers.  Moreover, the
contractors said conditions set by the rehabilitation plan
is prejudicial to the them since they will not be getting
anything if the conditions in the plan will not be met. The
conditions include the infusion of fresh capital, a sales
level of PhP12 billion ($294.6 million) for the first year
of rehabilitation, a franchise fee of 2% and a substantial
reduction in bank debt through dacion en pago.

The contractors also claimed the debt-restructuring plan
for contractors is uncertain and that Uniwide understated
the amount payable to them. The contractors are now asking
the SEC that they be paid according to the amount stated in
the creditors books and not the amount stated in the
rehabilitation plan.  (Business World  10-Dec-1999)


MORAKOT INDUS.: Posts big loss between July and November
Morakot Industries, a unit of Kuala Lumpur-based
conglomerate Sime Darby, said yesterday it recorded a loss
of about 100 million baht between July and November because
of the sluggish palm oil market.  Thailand's largest palm
oil refiner incurred a net loss of 111.2 million baht in
the year to June 1999 on revenue of 2.8 billion baht.

"We lost substantially in the period and we may not be able
to generate any profit this [accounting]) year," Morakot
chairman Art-ong Jumsai Na Ayudhya said.

The producer's accounting year runs from July to June. Mr
Art-ong said that since April the company had reduced the
price of its palm oil to about 20 baht a litre from 41,
because of an oversupply of crude palm oil and palm fruit.
Early this year, crude palm oil fetched between 31 and
31.50 baht per kilogramme, but the price has recently
plunged to 11 baht.

Mr Art-ong said the price had since picked up to about
12.50 baht and this might allow Morakot to increase its
palm oil rate soon.

"The price should have bottomed out as supply of crude palm
oil has started to decline. A price improvement is expected
early next year," he said.

Part of the company's losses stemmed from failed
speculative purchases of crude palm oil through futures
contracts, he said.

"We are committed to buying crude at a price much higher
than the current market price. The supply is expected to be
delivered to us steadily until March next year," he said.
Asked about the impact of the Asean Free Trade Area (Afta)
agreement on the Thai palm oil industry, Mr Art-ong said
the change would result in cheaper crude imports.  "We will
have to wait and see what the impact will be. We don't
really know what will happen after Afta is implemented, but
certainly there will be cheaper crude palm oil imports into

Thailand last month reaffirmed it would include palm oil
products in a tariff-cutting programme under the Asean Free
Trade Area pact now being negotiated.  It said that from
next year it would cut its import tariff on palm oil to 20%
from 151% for crude palm oil.  Thailand is committed under
the regional trade agreement to eliminating tariffs on 37
product categories by 2015.  Shares in Morakot were
delisted from the Stock Exchange of Thailand in June this
year at the company's request.  (Bangkok Post  10-Dec-1999)

PIZZA PLC: Pizza Hut contract uncertainty drops stock price
Share prices of The Pizza Plc (Pizza), a leading fast-food
business in Thailand, continued to plummet due in large
part to concerns over the company's long-term business
outlook, after it came into conflict over a contract
extension with Pizza Hut.

The downward trend was likely to continue, analysts said.
Pizza's share price dropped Bt5 to Bt71 last Friday, and
since Nov 16 it has dropped by 23.66 per cent or Bt22 from
the Bt93 level.  Late last month, Pizza and the US-based
franchiser of Pizza Hut, Tricon Global Restaurant Inc, were
caught in conflict over terms of a contract extension.
Tricon tried to refuse the renewal of an exclusive contract
with Pizza due to its plan to offer chicken products.

Pizza brought in a new fast-food item to its menu, Chicken
Treat, from an Australian franchiser. Pizza's new product
would be competing with Kentucky Fried Chicken, which is
Tricon's own chicken-based fast-food franchise. Negotiation
between Pizza and Tricon has been carried out for weeks,
and the uncertainty has caused investors to dump shares in

An analyst at Nava Vickers Ballas said to get a clear
indication of Pizza's future business outlook, investors
have to wait for the finalisation of negotiations between
the two restaurants.  While waiting for the finalisation,
Pizza's share price will continue to plunge even while
foreign investors have interests in the stocks, the analyst

William Heinecke, CEO of Minor Group, the franchisee of
Pizza Hut, said the negotiations are expected to be
concluded in January next year.

"Nothing has changed significantly, and nothing should be
picking up at this time. We are still under negotiation.
However, we do still have a contractual right for 5 years,"
he said.

Heinecke insisted Pizza would definitely continue with its
chicken business although the fast-food industry is
expected to be tough next year.  Youssef Abboud, an analyst
at SG Asia Credit, commented that whether or not Pizza will
be allowed an extension by Pizza Hut, the company's long-
term business outlook will not be bright.

He explained if the extension is allowed, Pizza would
probably be asked not to continue its Chicken Treat
business, meaning its expansion and future profits would be
limited.  According to Abboud's research report, if Tricon
renews the franchise with an increase in the royalty fees
of six per cent on the new outlets, the impact would be
very small. The net profit forecast would be reduced by one
per cent for 2000, and two per cent for a year after the
pre-announcement level.

If the franchise is not renewed, Pizza will continue to
operate the Pizza Hut franchise for an additional five
years, according to the contract because Tricon cannot
operate the pizza business at this time. However, Tricon
may dispute this.  The report said the prior net profit is
forecasted to decline by two per cent in 2000 to Bt208
million, and by six per cent in 2001 to Bt247 million.

Abboud commented that because the Pizza Hut franchise has
already been well accepted by 90 per cent of the markets in
Thailand, it will be difficult for Pizza to compete with
Tricon if it takes back the brand and operates on its own.
If Pizza loses the Pizza Hut franchise immediately, Pizza
will have to start its own brand immediately.  The impact
on Pizza's bottom line would initially be positive if that
was to happen, according to the report.

"We estimate the net profit will jump by 9 per cent and 4
per cent respectively to Bt233 million and Bt274 million in
2000 and 2001 from the pre-announcement level. This is due
to the savings from the franchise fees at 4 per cent of net
sales," Abboud stated in the report.

In addition, growth would be maintained at the same level,
but as Tricon starts opening its own outlets, competition
would intensify.  Pizza would have to spend more on
promotional expenses. The negative impact on the bottom
line would be seen largely by 2002, the report stated. At
this time, net profits of Pizza would drop by 10 per cent
or to Bt274 million.

Abboud said even without any concerns over the franchise
extension, Pizza has been facing tough competition and its
margins have been under pressure.  Currently, other fast-
food restaurants such as KFC, MK Suki and McDonald's have
also been eating up the market, leaving Pizza in a
difficult position.  (The Nation  11-Dec-1999)

SUN TECH GROUP: SET puts securities in rehab category
The securities of Sun Tech Group Plc will be transferred to
a new sector called Companies Under Rehabilitation, as of
yesterday, after it has been threatened by the Stock
Exchange of Thailand (SET) with a possible delisting due to
its negative shareholders' equity.

According to the procedure, the company must inform the SET
whether it will propose a rehabilitation plan to company
shareholders, or it must ask for a voluntary delisting.
This report must be submitted to the SET by Jan 4.  If it
decides to prepare a rehabilitation plan, it must appoint
an independent financial advisor to devise a route to solve
its problems with negative shareholders' equity.  The
completed plan must be presented to shareholders by April
3, 2000.   (The Nation, Bangkok Post  10-Dec-1999)

THAI OLEFINS PLC: Creditors agree in principle with rehab
Thai Olefins Company (TOC) President Adithep Pisarnbutr
announced yesterday TOC's US$350 million debt restructuring
plan is to be completed before January 19, 2000.

He said he expected that a portion of the principal debt,
together with interest amounting to US$8 million (about 304
million baht) could be returned to creditors within next
year. Adithep said its creditors have agreed in principle
to a plan that largely involves rescheduling the repayment
period from 2005 to 2007.  The company now owes $350
million to 15 creditors, including foreign and local banks,
led by Industrial Bank of Japan and Bangkok Bank.

"We reached an agreement with our creditors on debt
restructuring last August and we are now discussing details
of the interest rate," Adithep said.

In addition, he said, the Petroleum Authority of Thailand,
TOC's major shareholder with a 49 per cent stake, has
promised to provide a $50-million credit line for the
purchase of raw materials.  Major creditors of TOC include
the Japan Industrial Bank and Bangkok Bank, apart from 13
other domestic banks and foreign-based banks..

Adithep said he expected TOC will turn in at least 100
million baht profit as the company already reached the
breaking even in October this year.  Olefins prices during
the middle of this year went up moderately, but dropped
slightly towards the end of the year. (The Nation, Business
Day  10-Dec-1999)

THAI PETROCHEMICAL INDUS.: Vows battle with creditors
Thai Petrochemical Industry Plc (TPI), whose US$3.5-billion
loan is the country's largest non-performing debt, is ready
to play "tug of war" with its creditors if its counter-
proposals for a debt-restructuring plan are not approved by

"The creditors who objected to our counter-proposal want to
take control of the company, but we will not let them get
what they want," said Wachirapunthu Promprasert, the TPI's
chief financial officer. "We can play the game for years as
we are now running our operations in cash," he said
yesterday, countering an earlier threat by the creditors to
close all credit channels to the company if it insisted on
amending the restructuring plan that has been agreed since

Under the originally-agreed plan, TPI would raise its
registered capital next year by $200 million, from an
existing $4.4 billion, and the proceeds would be used to
settle part of the company's debts.  By 2003, the company
would have to raise another $500 million, also to settle
part of the remaining debts.

However, earlier this week, TPI counter-proposed that it
would raise its capital by $1 billion next year, with $700
million used to settle part of its debts, and the rest to
go toward working capital.  The creditors' steering
committee objected to the counter-proposal, saying it did
not believe TPI would be able to raise such a large amount
of new funds by next year.

Consequently, they said, the debt-restructuring plan would
suffer a heavy blow if the company could not raise the
funds as planned.  However, TPI views matters differently.
Mr Wachirapunthu said the company saw no possibility for it
to raise its capital by $200 million next year and by
another $500 in 2003.

"Who would be willing to inject funds into the company
while they know the company would have to recapitalise by
another $500 million in the next three years?" he asked

He maintained that the creditors would take no risk in
approving the counter-proposal, which came with a
safeguard.  If the company could not raise $1 billion
within the next year, and if it could not fulfill the
commitment, then its counter-proposal would be scrapped and
the previous agreed terms would be resumed, he said.

He said he understood that the International Finance
Corporation, an arm of the World Bank, objected to the plan
because it wanted to take control of the company. He said
the creditors would be unable to file a bankruptcy suit
against the company because its assets still exceeded its

However, the creditors' committee said that if TPI did not
honour its publicly confirmed commitment to finalise the
legal agreement to get on with restructuring, the creditors
could turn to legal action or squeeze credit to force
company management to approve the plan.  The creditors also
denied that some of them wanted to take over TPI as Mr
Wachirapunthu had alleged.  

Meanwhile, the stalemate promises to continue on with word
that there will be a delay in bringing the matter to the
Central Bankruptcy court because less than 75 percent of
the creditor's supported the raising of new equity by $1
billion as preferred by Prachai Leophairatana.  Earlier,
the steering committee scheduled a meeting for January 17
next to vote on the issue of taking the TPI case to court.
But it is unlikely that the steering committee, which
represents creditors, will get 75 percent vote.

Prachai and Chief Financial Officer Wachirapunthu
Promprasert said earlier that the company proposed to raise
$1 billion through the issue of new shares in the third
quarter of 2000. The issue would cut Prachai's family
holding in TPI from about 58 percent to 30 percent.

According to Wachirapunthu, TPI's creditors were divided
into two groups. One group opposed the raising of new
capital while the other agreed, resulting in a stand-off
and a postponement of the plan indefinitely.
The steering committee would prefer to bring the matter to
the Central Bankruptcy Court because Prachai has been
dragging the case on for over two years.  (Bangkok Post,
Business Day  10-Dec-1999)

VANACHAI GROUP: Raising capital as part of debt-pay plan
Vanachai Group Plc announced that its board of directors
has decided to raise capital from Bt670 million to Bt980
million by issuing 31 million new shares to six financial
institutions at Bt10 apiece, as part of its debt repayment

The six financial institutions are the Thai Military Bank,
the Bangkok Bank, the Krung Thai Bank, the Thai Farmer's
Bank, the Industrial Corporation of Thailand and the DBS
Thai Danu Bank.

In a filing with the Stock Exchange of Thailand, Vanachai
said the proceeds from the share allocation would be used
to settle the long-term debt it owes to the six financial
institutions. The move will alleviate the firm's interest
and debt burdens.  The recapitalisation is subject to
approval from the company's shareholders who will convene
on Jan 13.  (The Nation  10-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

Troubled Company Reporter -- Asia Pacific is a daily
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Copyright 1999.  All rights reserved.  ISSN: 1520-9482.

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