TCRAP_Public/991216.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

           Thursday, December 16, 1999, Vol. 2, No. 245


* C H I N A  &  H O N G  K O N G *

CREDIT SUISSE GROUP: Exec jailed for swindling scheme
DALIAN INT'L TRUST: To implement restructuring plan
DANIEL CLAYTON LTD: Facing winding up petition
GLOBE GLORY LTD: Facing winding up petition

* I N D O N E S I A *

PT BAYU BUANA: Tagged for legal action
PT PUTRA SURYA MULTIDANA: Tagged for legal action
PT PUTRA SURYA PAHALA: Tagged for legal action
PT PUTRA SURYA PERKASA: Tagged for legal action
PT PUTRA SURYA PERKASA INTI UTAMA: Tagged for legal action
PT PUTRA SWADANA PERKASA: Tagged for legal action

* K O R E A *

DAEWOO GROUP: Foreign creditors group Daewoo all together
DAEWOO GROUP: Gov't gives foreign creditors further warning
HAITAI BEVERAGE: FTC probe of Lotte Group takeover

* M A L A Y S I A *

KILANG PAPAN SERIBU DAYA: Administrator appointed
LION GROUP: Close to finalizing rehab plan
TIMBERMASTER INDUSTRIES: Administrator appointed
TIME TELEKOM: Maxis submits final purchase offer
WEMBLEY INDUSTRIES: Proposes debt restructuring

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

MONDRAGON INT'L PHILIPPINES: Settlement being directed

* S I N G A P O R E *

TYE SOON: Selling lingerie business for a loss

* T H A I L A N D *

ABACUS EQUITY PARTNERS: Fugitive takeover king an investor?
KRUNG THAI BANK: To reduce NPLs 25%, restructure debts
MDX PLC:  Will submit rehab plan to avoid being delisted
ONPA INT'L: Big rehab shake-up under way
THAI OIL CO.: Final creditor approval for rehab

C H I N A  &  H O N G  K O N G

CREDIT SUISSE GROUP: Exec jailed for swindling scheme
A private banker at an arm of Credit Suisse Group has been
jailed for three years because of an elaborate scheme he
devised to swindle investments from Golden Harvest

Peter Chan Shiu-wing destroyed his career and marriage as a
result of an "elaborately thought-out and well-planned
scheme, systematically executed", Mr Justice Azizul Suffiad
told the Court of First Instance yesterday.

The 31-year-old Chan is now also bankrupt.  Chan acted not
from monetary greed, the judge stressed, but the sheer
desire to hold on to his job as an exclusive banker with
Swiss Volksbank. "[Your] motivation was borne out by your
desire to retain your position with the bank," the judge
told Chan.

Chan was recruited by the bank in 1994, but by August 1996
his performance was dubbed "moderate" by his bosses when he
failed to meet targets.  The banker was given three months
to improve his client base. This led him to use the promise
of bogus interest rates of 15 per cent on US dollar time
deposits to lure clients into investing with the bank.  Two
such clients were Golden Harvest chairman Raymond Chow
Ting-hsing and fellow director Peter Choy Tuk-sang. The
latter deposited US$26.2 million, while Mr Chow took out a
$2 million loan with the bank in late 1996.

Chan's family connections had been exploited to bring such
high-profile clients on board, a jury was told. His father,
a doctor, was good friend with Mr Choy.  For six months,
Chan used computers to falsify information and
confirmations of transactions as well as forging
signatures.  A jury returned a guilty verdict last week for
charges that included false accounting.  However, although
Chan was acting in a manner prejudicial to his clients,
neither was out of pocket as a result of his acts.

"I accept that the evidence from the victims show they have
not lost out in monetary terms from any of these
transactions," the judge said. "But that was only because a
settlement had been reached between them and Credit Suisse,
which took over Swiss Volksbank."

As far as Credit Suisse was concerned, it was not apparent
how much was lost in monetary terms, the judge said.
(South China Morning Post  15-Dec-1999)

DALIAN INT'L TRUST: To implement restructuring plan
Dalian International Trust and Investment Corp (Ditic) - a
major mainland trust and investment company - has become
the latest to announce a debt restructuring plan.

Beijing appears to have stepped up its efforts to
restructure the debt-plagued investment arms of local
authorities and government ministries after months in
limbo.  This follows the recent completion of debt
restructuring by the Guangdong provincial government's
Macau investment arm Nam Yue (Group).

Ditic creditors yesterday were given until the end of next
month to decide between two options for the restructuring
of 1.98 billion yuan (about HK$1.84 billion) of unsecured
liabilities, against adjusted total assets of about 443
million yuan at August 31, according to CLSA Global
Emerging Markets, which advises Ditic on the restructuring.

The first option allows the debt to be paid off over 10
years with annual interest of 1 per cent.  It provides for
17.5 per cent of the debt to be paid in cash immediately,
32.5 per cent settled in instalments over 10 years, and the
remaining 50 per cent deferred until the end of year 10.
Creditors will be given 45 per cent in cash up front under
the second option. However, they would have to swap 27.5
per cent of the debt for up to 90 per cent equity in a new
joint-venture bank - the formation of which is subject to
Beijing's approval - with a "put option".

The put option allows creditors to sell the shares back to
the asset management company at the end of the fifth year
for the value of the original principal. Option two would
leave an expected shortfall of 27.5 per cent. However,
foreign creditors have been quick to point out they have no
interest in investing in mainland joint-venture banks.

An official with a creditor bank yesterday said while
neither option was desirable, bankers were more likely to
accept a full repayment over a longer period than a debt-
for-equity swap. (South China Morning Post  15-Dec-1999)

DANIEL CLAYTON LTD: 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
Yam Kit Ying, Kwan Sui Mui Grace, Cheung To Ping and Chan
Bing Hung for the winding up of Daniel Clayton Limited. A
notice of legal appearance must be filed on or before
December 28.

GLOBE GLORY LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for February 2, 2000, on the
petition of Yuen King Man for the winding up of Globe Glory
Limited. A notice of legal appearance must be filed on or
before February 3.


PT BAYU BUANA: Tagged for legal action
PT PUTRA SURYA MULTIDANA: Tagged for legal action
PT PUTRA SURYA PAHALA: Tagged for legal action
PT PUTRA SURYA PERKASA: Tagged for legal action
PT PUTRA SURYA PERKASA INTI UTAMA: Tagged for legal action
PT PUTRA SWADANA PERKASA: Tagged for legal action
The Indonesian Bank Restructuring Agency (IBRA) has
identified eight companies with substantial non-performing

The eight companies and their totals of non-performing
credits include PT Putra Surya Perkasa (PSP) with seven
subsidiary companies reaching Rp1.776 trillion; PT Putra
Surya Multidana (PSM) Rp1.792 trillion; and PT Primaswadana
Perkasa Finance (PSPF) worth Rp1.42 trillion.  In addition
are PT Bayu Buana Rp32 billion, PT Putra Swadana Perkasa
Rp33.8 billion; PT Putra Sejahtera Pioneerindo Rp31.6
billion; PT Putra Surya Perkasa Inti Utama Rp10 billion;
and PT Putra Surya Pahala Rp4.87 billion.

IBRA manager Andreas A. Bunanta told reporters here
yesterday the debtor's non-performing credit total was
provisional and may still change.  "These data are not yet
final. So, both PSP non-performing credits as well as what
was announced earlier are still subject to changes."

He said, he collected the data from 20 banks (taken over,
frozen, recapitalised, and state banks) comprising more
than 50 facilities, thus requiring considerable time to
sort them out.

He further said of the eight companies, the three largest
ones - PSP, PSM and PSPF - the level of non-performing
credits reached 90% and all debtors are catagorised as
uncooperative.  Asset Management Unit (AMU) Legal Division
officer Agustus Sani Nugroho said uncooperative debtors are
given the time limit until end of 1999, before "legal
action" are taken.

PT PSP is a publicly listed company with 19.47% of shares
owned by the public and the remaining 66.34% controlled by
PT Putra Suryagraha Pratama.  This company is an investment
holding company and the construction of apartments, real
estate, general trading and sales agent.

PT PSM is set up in 1990 and owned by the Gondokusumo
family with 73.24%, 19.47% owned by the general public and
7.25% by bond holders. As a multi-finance company it is
active in vehicle financing.

PT PSPF established in 1993 is also a multi-finance company
active in vehicle financing as well. The company's 97.125%
is controlled by PT Putra Swadana Perkasa as the holding
company of the Gondokusumo family, 2.5% by PT Bina Dharma
Niagatama, and 0.375% by Slamet S. Gondokusumo. (Asia Pulse


DAEWOO GROUP: Foreign creditors group Daewoo all together
Refusing to accept the government's proposal of loss ratios
ranging from 60-90 percent, the Foreign Bank Steering
Committee is still firm in its belief that the borrower is
a single economic entity.

The Steering Committee, representing the interests of over
200 foreign creditor banks of Daewoo strongly argued that
the loss ratio must be the same for all of Daewoo's $5
billion debt as the group has operated as a single economic
unit.  It said in an internal memorandum to all foreign
banks dated Dec. 12 (The Korea Times front page, Dec. 15)
that denying Daewoo's status as a single group is
inconsistent with the reality concerning the management and
operation of chaebol and regulatory and accounting
practices in Korea.

Last Wednesday, Daewoo's financial advisors submitted a
proposal to the Steering Committee of a 76.7 percent loss
on average imposed on the group's foreign debt.  The
discount rate for Daewoo Corp., to which foreign banks
granted most of their loans, was set at the highest level
of 82 percent while those for other major units were set

Yet, as most foreign bank loans given to Daewoo Corp. were
channeled to other subsidiaries, the Steering Committee
said imposing the highest loss ratio on Daewoo Corp. was
unacceptable.  The Committee offered various other factors
supporting its claim in the Dec. 12 letter.  It said that
Korea's Fair Trade Commission has designated and regulates
30 chaebol and routinely investigates improper inter-
affiliate transactions, proving Daewoo, the second largest
conglomerate, is a single chaebol.

The Committee also added that Korea's lending limit
regulations are applied on the group basis.  It even quoted
an article from the Standards for Combined Financial
Statements from Securities & Futures Commission of Korea
stating "the objectives of combined financial statements
are to present operating results and cash flows of chaebol
as a single economic entity."

The Committee is of the firm view that any restructuring or
settlement plan for Daewoo companies failing properly to
take into account the single entity nature of Daewoo is
fundamentally wrong, it said in the letter.

"Neither Daewoo workout plans nor the buyout proposal meet
that standards (Daewoo being a single economic entity),"
the Steering Committee said.

Ruling out acceptance of the conditions for the buyout
proposal, the Steering Committee said it failed to reflect
the impact of intercompany asset transfers.  The Steering
Committee said it had delivered a request to Daewoo's
financial advisors, demanding reports on financial or
accounting irregularities and levels of assurance with
respect to the accuracy and completeness of the
information.  Yet Daewoo has not responded to date, the
Steering Committee added.  (Korea Times  15-Dec-1999)

DAEWOO GROUP: Gov't gives foreign creditors further warning
South Korea's Daewoo Group has warned its foreign creditors
that it may hold separate talks with them one-on-one if
they continue to veto its package proposal for foreign
creditors on retrieving investment in Daewoo bonds.

The conglomerate, in a letter signed by its legal advisor
Friday, said it will have its advisors meet foreign
creditors separately if the steering committee that
represents some 200 foreign creditors maintains an
"insincere attitude" towards its compensation offer.

Daewoo expressed regret that the committee displayed little
interest towards producing a constructive conclusion
despite the offer being the best for all parties concerned.
The group disclosed the exact amount redeemable from bonds
and stock equity, debt guarantee, liabilites outside the
ledgers and details of account held by Daewoo Corp.'s
affiliate in London in the proposal to foreign creditors,
which was not reflected in the debt workout.

Daewoo complained that some banks on the committee were
delaying talks at the expense of all creditors for their
own interests.

"A court management for Daewoo Corp. may be inevitable if
the foreign debt workout is not settled quickly. But we
want to work out a way for foreign creditors to retrieve
their loans through talks as early as possible," an
official of Daewoo Corp. said.

Daewoo warned that creditors not included in the committee
may be unable to redeem their investment if the committee
continues to delay talks.  The conglomerate offered last
week a way for foreign creditors to retrieve between 30 and
90 percent of their investment in Daewoo bonds.  (Asia
Pulse  14-Dec-1999)

HAITAI BEVERAGE: FTC probe of Lotte Group takeover
The Fair Trade Commission has launched an investigation
into the takeover of Haitai Beverage by a consortium
involving Hotel Lotte.

The probe comes amid allegations that the domestic
beverages market is becoming a monopoly.  The anti-trust
watchdog body said yesterday that it has begun looking into
the takeover of Haitai Beverage, a subsidiary of the failed
Haitai Group, by a Japanese-led consortium that also
includes Hotel Lotte. Hotel Lotte is part of the Lotte
Group, which includes a beverage maker.

Japan's Hikari, a printing concern, has a 51 percent stake,
Asahi Breweries holds a 20 percent stake, Hotel Lotte a 19
percent stake and Mitsui Corp. and Dentsu Inc. 5 percent
stakes each in Haitai Beverage.  However, industry sources
claim that the consortium is in fact led by the Lotte
Group. They point out that Hikari is a supplier to Lotte,
responsible for printing Lotte's ramen packages in Japan
and that Asahi Breweries and Lotte enjoy unusually close
ties, as demonstrated by their earlier attempt to bid for
Jinro-Coors Brewery Co. together.

An official on the commission said that it would be
difficult to conclude that the Lotte Group is leading the
consortium, as suppliers are generally not construed as
having special relationships with the companies they
supply.  The probe will try to discover if the Lotte Group
may try to take over Haitai Beverage by getting the
suppliers to act on its behalf, the official explained.

If the Lotte group is found to be leading the consortium,
the FTC may not approve the merger, as Lotte Chilsung
Beverage and Haitai Beverage together enjoy more than 60
percent market share.  (Korea Herald  16-Dec-1999)


KILANG PAPAN SERIBU: Administrator appointed
TIMBERMASTER INDUSTRIES: Administrator appointed
Malaysia's Pengurusan Danaharta Nasional said yesterday it
has appointed special administrators to two timber products
firms, Kilang Papan Seribu Daya and Timbermaster

Administrators were also appointed to three subsidiaries of
Timbermaster, the national asset management agency said in
a statement. Three officials from Ernst & Young were
appointed as administrators to Kilang Papan and two from
PricewaterhouseCoopers to Timbermaster.

"With these appointments, the special administrators assume
control of the assets and affairs of the companies."
(Reuters, Straits Times  15-Dec-1999)

LION GROUP: Close to finalizing rehab plan
Malaysia's Lion group, one of the country's biggest
industrial concerns, is close to finalising a plan to repay
RM10.2 billion (S$4.5 billion) of debt in its latest bid to
avoid bankruptcy.

Lion is expected to announce the re-organisation of debts
this month, a company executive said yesterday at an annual
shareholders' meeting of Lion Land, one of the Lion group
of companies.  A new pact with creditors is needed by the
Lion group -- controlled by Malaysian tycoon William Cheng
-- to help plan future business and tap the country's
economic recovery. Lion had assets of about RM15 billion,
the group had said at its annual meeting a year ago.

The proposal will likely include a bond sale, involve the
group re-arranging most of its property, steel, and tyre-
making companies, and also result in Lion Corp becoming the
group's ultimate holding company, bankers said.  Currently,
most of the companies are under Amsteel Corp.

In January, Amsteel said some of its subsidiaries did not
have enough money to pay their loans.  It appointed
PricewaterhouseCoopers as an independent financial adviser
to help it re-organise its businesses in Malaysia,
Singapore, Hongkong and China. The Lion group comprises
eight listed companies, including Amsteel, Lion Land,
Amalgamated Containers, Posim, Angkasa Marketing and Lion
Corp, Mr Cheng's flagship company.  It has interests in
steel, chocolates, cocoa, motorcycles, finance,
construction and property development.  (Bloomberg News,
Straits Times  15-Dec-1999)

TIME TELEKOM: Maxis submits final purchase offer
Maxis Communications Bhd has submitted its final bid to the
Corporate Debt Restructuring Committee (CDRC) to possibly
acquire Time Engineering Bhd unit Time Telekom Sdn Bhd,
said Maxis chief executive officer Jamaludin Ibrahim.

"We have given our bid. To us, it is a good bid," Jamaludin
told reporters after launching Maxis' latest E-nabled

He said the bid was submitted a few days ago but declined
to disclose if the final bid was a revision of an earlier

"Time Telekom is still a good match and that is why we are
one of the bidders. As far as we are concerned (our
proposal) will be a win-win situation for both parties," he
said.  "Right now we are in a sensitive period as we are in
the final stages of decision-making. . .We would not like
to say anything that will confuse the picture."

Besides Maxis, two other companies Kejora Harta Bhd and
Singapore Technologies have submitted bids to acquire Time
Telekom.  Kejora Harta boss Datuk Samsudin Abu Hassan told
Star Business the company was still keen to acquire Time
Telekom.  Over the past five to six weeks, Kejora Harta had
also been revising its proposal.

Last week Renong Bhd executive chairman Tan Sri Halim Saad
said Time Engineering's lenders were unhappy with the bids
received so far. "We are asking for additional bids. The
current bids are still with the CDRC. They have not come up
with a solution," he said.

Renong has a 46.8% interest in Time Engineering which, in
turn, owns 100% of Time Telekom.  Time Engineering has been
granted court protection against creditors under Section
176 of the Companies Act until Jan 8.  Halim said that CDRC
and Time Engineering should come up with a solution on the
sale of Time Telekom before Jan 7.

Apart from the three, two foreign parties are in direct
talks with Time Engineering on a possible acquisition of
Time Telekom.  Time Engineering confirmed that it is in
talks with North American-Teleglobe Corp Inc, while
speculation is rife that MCI Worldcom was invited by Time
Engineering to submit a bid for Time Telekom.  Teleglobe
shareholder Charles Sirios is said to be in talks with Time
Engineering, but it is not clear whether Teleglobe or
Sirios's private investment company TIW Wireless will buy
into Time Telekom if a deal is struck.

Foreign parties are allowed to own up to 61% equity in
local telcoms firms but this stake must be reduced to 49%
after five years.  The main hiccup in the Time Telekom
sale, according to analysts, was its hefty debt of about
RM3.5bil.  They said that for the sale of Time Telekom to
effected, Time Engineering lenders must be willing to take
a major "hair-cut".

In another development, Time Engineering told the KLSE that
it had had discussions with Asgari Stephens and Big Tree
Outdoor Sdn Bhd in association with Sports & Events Network
Sdn Bhd on the possible sale of Time unit Radio Lebuhraya
Sdn Bhd.  Radio Lebuhraya is the operator of Time Highway
Radio. Time Engineering said it had yet to receive any firm
proposal from any of the interested parties.  (Star Online

WEMBLEY INDUSTRIES: Proposes debt restructuring
Wembley Industries Holdings Bhd (WIHB) has proposed a debt
restructuring exercise involving an issuance of
irredeemable convertible unsecured loan stocks (Iculs), a
rights issue with warrants and an increase in authorised
share capital.

The company said in a statement yesterday the proposed debt
restructuring would involve an issuance of RM606mil nominal
value of 1% Iculs at 100% of its nominal value as full and
final settlement of loans owing by WIHB and two of its
subsidiaries Plaza Rakyat Sdn Bhd and Wembley IBAE Sdn Bhd
(IBAE) amounting to approximately RM606mil.

The proposed rights issue would involve 144.475 million new
shares and the same number of detachable warrants on the
basis of one new share with one detachable warrant for each
existing share held, to be issued at RM1 per new share. The
company's authorised share capital is proposed to be
increased from RM500mil, comprising 500 million shares, to

The proposed debt restructuring involves the restructuring
of the secured loans, unsecured loans and amounts owing to
certain creditors of WIHB, Plaza Rakyat and IBAE. Included
in the proposed debt restructuring are the loans and
amounts owing by IBAE, a 99.9% owned subsidiary of WIHB
that is being wound up.

"As WIHB acted as guarantor for the loans of IBAE, the said
loans and amounts owing are being restructured together
with WIHB and Plaza Rakyat's loans owing," the company

As full and final settlement of the loans and amounts
owing, Wembley is proposing to issue RM606mil nominal value
of Iculs to the secured and unsecured lenders of WIHB,
secured lenders of Plaza Rakyat, unsecured lenders of IBAE
and the major creditors of WIHB, Plaza Rakyat and IBAE.
The RM606mil includes the capitalised interest in respect
of the loans, as follows:
* Interest outstanding up to Dec 31, 1998, amounting to
RM56mil; and
* Further interest accruing from Jan 1 to Dec 31, 1999, on
the principal amount after adjusting for the capitalisation
of the outstanding interest set out above at an annual
interest rate of 7.25%, amounting to RM25mil.
However, no interest will be capitalised in respect of the
amounts owing to the creditors.

The WIHB group's total debts due to the lenders amounts to
RM369mil including interest accrued as of Dec 31, 1998, and
further interest accruing up to Dec 31, 1999, while the
amount due to creditors is RM238mil.  It said WIHB group's
current prospects lied mainly in a mixed development
project comprising a retail shopping complex, office tower,
hotels and an integrated transport hub housing the central
bus terminal and the Light Rail Transit station known as
the Plaza Rakyat project.  Plaza Rakyat, the company's
wholly-owned subsidiary, is the sole developer of the

"The successful development of the Plaza Rakyat project
will depend on the successful deployment of funds towards
the Plaza Rakyat project which, in turn, is dependent on
the successful implementation of the proposed debt
restructuring," it said.  (Star Online  15-Dec-1999)


MONDRAGON INT'L PHILIPPINES: Settlement being directed
Following a three-month battle for management control, the
coming year may see more peaceful operations in Mondragon
International Philippines, Inc. (MIPI). The corporate court
recently ordered both MIPI management -- led by MIPI
chairman and president Jose Antonio Gonzalez -- and its
creditor banks to submit by December 17 statements of their
willingness to enter into an amicable settlement.

The Securities and Exchange Commission also required both
camps to present alternative modes of dispute resolution,
indicating the terms each party desires.  A preliminary
conference has been scheduled on December 20 to determine
the possibility of an amicable settlement or other means of
reconciling the ongoing battle.

"Any party who fails to appear at the scheduled preliminary
conference or to submit the required preliminary conference
brief (by December 17) may be non-suited or considered in
default," the SEC said.

Currently pending before the SEC is a 61-million-peso
(US$1.5 million at PhP40.707:US$1) suit, filed by the
Gonzalez-led board, against MIPI creditors Asian Bank
Corp., Far East Bank and Trust Co. and United Coconut
Planters Bank.  Last September, in what MIPI considers a
"mock election," eight bank executives were elected to the
MIPI board in spite of the absence of the corporate
watchdog's go signal to conduct the said meeting.  A source
said earlier that the creditor banks present during the
meeting comprised 54% of all shareholders.

"There was a quorum and we were being observed by
representatives of the SEC. Shares were indeed pledged to
the banks as collateral for certain loans but they don't
own the loans and they are not stockholders and yet they
claim to have voting rights," Mr. Francisco said.

Meanwhile, Mr. Gonzalez earlier said the corporate "coup
d'etat" that took place at the Mondragon House in Makati
City may turn off potential investors as this may send a
signal that the firm is deeply at odds with its creditors.
The creditor banks, on the other hand, said their main
objective is "to get the casino to operate and start the
cash flow."

Mondragon has debts of over PhP7 billion ($171.9 million).
Its lenders include Metropolitan Bank and Trust Co., TA
Bank, Philippine Banking Corp. and Dao Heng Bank.

In a related development, majority of the more than 20
unsecured and semi-secured creditor banks of MIPI have
banded together to have better prospects of collecting from
the listed leisure firm, a BusinessWorld source said.
The semi-secured and unsecured creditors have a combined
PhP1.9 billion ($46.7 million) in exposure to MIPI, part of
which are secured with equipment, country club and golf
club shares, the source said.

The resort operator has PhP7 billion in total debts to
creditor banks, the Philippine Amusement and Gaming Corp.
(Pagcor), Bureau of Internal Revenue and Clark Development
Corp. (CDC).

"We have better chances of recovering our exposures if we
form a group," the source said. "The other creditors are
welcome to join," the source added.

Voted as chairman of the working committee is Land Bank of
the Philippines vice-president Gabriel M. Jayme. Elected
vice-chairmen are Urban Bank senior vice-president Severo
C. Leagogo and PDCP Bank vice-president Jose Angelo
Ledesma.  The steering committee members are East-West
Banking Corp. executive vice-president Gerardo B. Anonas,
China Banking Corp. first vice-president Margarita L. San
Juan and All AsiaCapital and Trust Corp. senior vice-
president Renato Villar.

The source said the creditor group will negotiate with MIPI
and CDC, which recently took over the operations of Mimosa
Leisure Estate in Pampanga. The group is likewise open to
dealing with prospective investors.  Though the creditor
group is open to the possibility of rescheduling loan
payments, the source said a debt restructuring plan cannot
be drawn up without a new investor or without a stable
source of revenue.

"A restructuring plan can only be proposed if you can
pinpoint a source of income or if there is a new investor,"
the source said.

MIPI's bread and butter, the casino in Mimosa, used to post
a monthly PhP100-million ($2.45 million) revenue before it
was closed late last year due to a legal squabble with
Pagcor.  After its takeover of the operations, CDC said it
is now ready to accept proposals from interested investors
who will replace previous operator Mondragon Leisure and
Resort Corp.  (Business World  15-Dec-1999)


TYE SOON: Selling lingerie business for a loss
Soon said its wholly owned subsidiary Yamakawa Trading has
agreed to sell its lingerie business to ERO Lingerie
International for about $150,000 in cash.

It has estimated a loss of about $140,000 from the sale,
based on the net book value of the assets sold and certain
other related costs to be incurred.  It said its lingerie
business had not been able to achieve its intended market
presence and profitability.

"As the prospects for achieving these are presently
unclear, the directors believe that it will be in the
group's interest to divest this business," it explained.
(Straits Times  15-Dec-1999)


ABACUS EQUITY PARTNERS: Fugitive takeover king an investor?
Former takeover king Pin Chakkaphak, who is now fighting
extradition charges in London, is believed to be a major
investor behind Abacus Equity Partners Ltd, an investment-
banking firm launched recently to conduct advisory works
and investment-banking deals in Thailand, financial sources

An investment banker at a Thai commercial bank said that he
had heard that Pin was behind the company but there was no
proof of this because it was still only a low-profile

"I have heard that it is [Pin's firm], but I have no proof
of it. It is a brokerage company trying to buy and sell
assets. But it is not doing much," he said.

It is believed that Abacus Equity Partners is run by an
American citizen married to a Thai national. The name of
the manager, however, could not be confirmed. Another
veteran investment banker said Abacus Equity Partners was
trying to assemble a taskforce, currently numbering less
than 10, to look for opportunities in distressed or fund-
bleeding companies on the Stock Exchange of Thailand.

"They conduct analysis and try to bring buyers and sellers
together," said the investment banker.

If Pin was really behind Abacus Equity Partners, he was
showing his determination to continue to do business in
Thailand, which was the market he knew best, the banker

"Sure, he wants to make some money in Thailand and look
after some of his assets. Anyway, he does not know the US
market, or any other market for that matter, better than he
knows Thailand," he said.

Pin, who left Thailand more than two years ago, is fighting
an extradition request from the Thai authorities after
British police nabbed him in a London apartment a few days
ago.  He is wanted in Bangkok for allegedly defrauding
Finance One Plc out of more than Bt2.1 billion along with
two of his former associates.  (The Nation  15-Dec-1999)

KRUNG THAI BANK: To reduce NPLs 25%, restructure debts
State-owned Krung Thai Bank (KTB) has said it will reduce
its non-performing loans to 25 percent - down from 51.3
percent as of the end of September, 1999 - by the end of
year 2000 and restructure its problem debts for at least
100 billion baht after the establishment of an Asset
Management Corporation (AMC), according to KTB's newly-
published White Paper.

KTB President Sing Tangtatswas told reporters at the launch
of the White Paper yesterday that the publication of the
paper is aimed at clearing doubts about the KTB
performances and its image as a state bank which is deep in
debt.  He said the measures are also to prove that KTB is
not in as hopeless a situation as portrayed by some
opposition politicians.

He said that the White Paper has summarized that KTB
performed progressively and recorded growth during the past
ten years as steadily as other successful banks.  Sing
emphasized that KTB, as a state-owned bank, has served the
country under the instructions of the Government to support
and solve liquidity problems of financial systems -
including the acquirement of assets of ailing state-
sanctioned financial institutions.

KTB wants to correct the unusually high percentage of non-
performing loans as reported by PricewaterhouseCooper, a
US-based auditing company, at 84 percent.  KTB employed
PricewaterhouseCooper to conduct the NPL analysis in order
to find the exact available amount of reserve the bank has
in case it has to compensate when it acquires assets of the
defunct First Bangkok City Bank (FBCB).

PricewaterhouseCooper sampled only 140 groups of classified
major debtors, using its thorough analysis method which is
of a higher standard than has been adopted by the Bank of
Thailand. The company also looked at the future payment
capabilities of these debtors.  Thus KTB considered the
result of the analysis inappropriate because the sampled
debtors did not represent the majority of debtors, Sing
said. KTB did not use PricewaterhouseCooper's analysis
because it would require the KTB to spend too much for the
acquirement of FBCB.

KTB then appointed its own committee, headed by former
Governor of the Bank of Thailand Kamchorn Sathirakul, to
analyze its loans.  The committee found that KTB's NPLs at
the end of June, 1999, stood at 59 percent The percentage
came down to 51.3 percent by the end of September, Sing
added.  (Business Day  15-Dec-1999)

MDX PLC:  Will submit rehab plan to avoid being delisted
MDX Plc said that it will submit a rehabilitation plan to
prevent its shares from being delisted.  The company is now
in the process of selecting an independent financial
advisor to prepare the rehabilitation plan.  (The Nation

ONPA INT'L: Big rehab shake-up under way
Onpa International Plc, a listed entertainment company, is
set to undergo a big business and financial shake-up with
the dilution of the stake held by existing shareholders to
only 23.22 per cent after the company unofficially agreed
to welcome new partners including a UK-based entertainment

Viroj Prichavongwaikul, chairman and managing director, is
to step down and Itthivat Bhiraleus, a director of
Broadcasting Network Thailand Ltd (BNT), is to be the new
chairman of Onpa, according to a press release from Seamico
Securities Plc, the company's financial advisor.  BNT, the
new major shareholder of Onpa, is an entertainment company
in Thailand with several radio programmes such as 'Love FM'
and television programmes such as Channel V. BNT has a
network in the UK.  Onpa and BNT will hold a joint press
conference today.

"Under the business restructuring plan of Onpa, there will
be a capital increase with an issuance of 76.78 per cent
new shares while the old shares will be diluted to 23.22
per cent," said Prinyar Prinyarnussorn, senior vice
president of Seamico.

The company's shareholders yesterday approved a plan to
raise its registered capital from Bt750 million to Bt3.23
billion.  Onpa's overall restructuring involves a capital
increase by issuing 75 million new ordinary shares, or
23.22 per cent of total new outstanding shares, with the
offer price of Bt2.5 each to BNT.

Prinyar said 75 million new Onpa shares will be swapped for
BNT assets that include 7.5 million shares in ITV and
500,000 shares in Siam Satellite Co Ltd, which are owned by
BNT.  The company will also issue 158 million new common
shares to BNT and investors to be designated by BNT at a
minimum offer price of Bt5 each, and 15 million new common
shares under the employee-stock-option plan with the offer
price of Bt5 to Bt10 each.

"This capital increase is part of Onpa's overall financial
restructuring programme, which was recently agreed on with
its financial creditors. Our new partner will be a key
element in the rehabilitation of the company, providing
synergy to Onpa's future operations," Viroj was quoted in
the press release.

The new money will mostly be used to repay its existing
debts, and the remaining will be used as its working
capital.  Prinyar said Onpa has outstanding debts of Bt1.2
billion, and Thai Military Bank is the major creditor. Onpa
has already signed a term sheet with its creditors over the
debt-restructuring plan, and the actual agreement will be
made by this week.

Under the plan, repayment of Bt520 million worth of debts
will be extended by 7 years, and Bt310 million will be
repaid immediately. There will be a hair-cut of Bt270
million, about 35 per cent of the total debt. According to
Prinyar, the money for the Bt310-million repayment would
probably come from part of the 158 million new shares that
BNT will sell to other investors and also from the 15
million new shares offered to the directors of BNT.

Itthivat, who will be the new chairman of Onpa, said in the
release that Thailand will become a regional hub for
international multimedia production and distribution if it
continues measures to protect intellectual property and
promotes Thailand as a secure place for international media
companies to entrust their copyrighted assets. BNT's
advisor is the New York-based Young Group.  (The Nation

THAI OIL CO.: Final creditor approval for rehab
ThaiOil Co (Thaioil), Thailand's largest oil refinery with
debts totalling US$2.25 billion, has won debt-restructuring
approval from creditors holding 90 per cent of the debit,
said Pichai Chunhavajira, deputy governor of the Petroleum
Authority of Thailand (PTT). PTT is the largest shareholder
of Thaioil.

Despite the recent explosion at its Sri Racha refinery,
Pichai said the latest count shows that creditors
representing 90 per cent of the total debt have already
agreed to the debt-restructuring plan.  Thaioil negotiated
to get more creditors to agree to the debt plan following
its success in winning approval from most creditors under
the Bank of Thailand's Corporate Debt Restructuring
Advisory Committee (Cdrac) scheme last month.

But since it could not get the vote of approval from all
creditors, Pichai said Thaioil would have to file for court
protection for its rehabilitation plan, as a pre-emptive
measure against possible lawsuits from the minority of
creditors who oppose the debt programme.  Thaioil owes a
total of 124 creditors, some of whom are not in the Cdrac.

As part of the debt revamp plan, Thaioil is undertaking a
debt buyback programme, for which is due to close today.
Pichai said Thaioil is expected to meet its target to buy
back $315 million of its debts (including $30 million
interest) since the firm has so far received bids for over
US$100 million, though most creditors are expected to bid
only at the deadline day.

Thaioil would use funding from the $250 million new capital
injection from PTT to pay for the debt buyback programme,
in which the participatory creditors have to offer a write-
off of no less than 50 per cent.  Pichai said the explosion
at Thai Oil's storage facilities at the refinery has
speeded up some creditors' decision to join the scheme as
the real cause of the incident has not yet been revealed
and is thus creating uncertainty.

Regarding Thaioil's asset sales plan that is expected to
raise a total of $70 million, Pichai said it has already
concluded the pricing terms for the divestiture of its 40
per cent share in Thai Carbon Product Co to Tokai of Japan
for $10-15 million.

Earlier, Thaioil signed an agreement to sell its stake in
Thaioil Power to PTT Exploration and Production Plc. The
company is also planning to sell its shares in Thai Lube
Base Co and Thai Paraxylene Co.  (The Nation  15-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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