TCRAP_Public/991227.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 27, 1999, Vol. 2, No. 251


* C H I N A  &  H O N G  K O N G *

CHINA ELEGANCE INT'L FASHION: Share offer to reduce debt
NANTONG MACHINE TOOL: Stock price falls
NPH INTERNATIONAL: Narrows six-month loss
RUBBER BELT: Stock price falls

* I N D O N E S I A *

PT FISKARAGUNG PERKASA: Creditors to auction assets
PT SINAR SLIPI SEJAHTERA: Has real property seized by IBRA

* J A P A N *

MITSUBISHI MOTORS CORP.: To cut debt,assembly line,labor
SUMITOMO METAL INDUSTRIES: Shares fall on profit-taking
TOYOTA MOTOR: Shares fall on profit-taking

* K O R E A *

DAEWOO CORP.: Key Daewoo unit US$2.5b poorer
DAEWOO GROUP: Foreign creditors reject buyout proposal
DAEWOO MOTOR: GM offering 1/3 equity stake to creditors
DAEWOO MOTOR: Local opposition to GM increases
DAEWOO MOTOR: GM not keen on auction idea
DAEWOO MOTOR: Samsung eliminates itself from the running
KOREA FIRST BANK: Newbridge purchase deal finally closes
SAMSUNG GROUP: Stock slips

* M A L A Y S I A *

DAI-ICHI INDUSTRIES: Posts annual loss
MYCOM BHD: Predicts mid-2000 restructure completion
TERAMAJU SDN: Workout plan okayed by secured creditors

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

HERITAGE PARK: Investors hail PEA contract rescission
UNIWIDE GROUP: Paragon sale a start, fresh capital needed
UNIWIDE SALES INC.: I Mart buys convenience store network

* S I N G A P O R E *

CYCLE & CARRIAGE: Stock continues slide for 3rd day
THAKRAL CORP.: Posts first-half loss,rehab plan by Q1 2000
THE HOUR GLASS: Posts first-half loss

* T H A I L A N D *

EMC: Reports rehab plan progress to SET
NITHI VENTURE CORP.: Boards approve debt restructure plans
POWER-P PLC: Reports debt rehab agreement to SET
SUBMICRON TECHNOLOGY: Appoints financial adviser for rehab
TELECOMASIA CORP.: Signs debt restructuring agreement
THAI-GERMAN PRODUCTS: Files rehab report with SET

C H I N A  &  H O N G  K O N G

CHINA ELEGANCE INT'L FASHION: Share offer to reduce debt   
Leather-jacket retailer China Elegance International
Fashion plans to get creditors off its back by raising
$31.2 million from an open offer to existing shareholders.

Independent shareholders yesterday approved the proposed
share offer, with the proceeds to be spent largely paying
off trade creditors and purchasing a fashion collection for
spring. Chairman Cheung Ngan said the open offer would
improve Elegance's financial health as the company had
survived on internal cash flow only since the financial
crisis began in 1997.

"All the banks have turned off their taps to us," he said.

The open offer involved selling 3.33 billion new shares on
a one-for-one basis at one cent per share.  The offer price
is a 62.96 per cent discount to yesterday's closing of 2.7
cents.  (South China Morning Post  23-Dec-1999)

NANTONG MACHINE TOOL: Stock price falls
RUBBER BELT: Stock price falls
The Shanghai Class B Share Index dropped 2.1%, while its
counterpart fell slightly. Traders said the market
continued to sell shares in companies that are offering
state shares to existing shareholders while investors shift
funds to a series of initial public offerings.

Motorcycle maker China Jialing Industrial Co., one of the
two companies selling state shares to existing
shareholders, fell 7.5% in Shanghai.  Sichuan Top
Changzheng Software, which recently issued a tranche of
Class A shares, shed 10% in Shenzhen. Shanghai-listed
Nantong Machine Tool fell 8.1%. In the Class B share
market, the biggest decliners were Rubber Belt,
which fell 8.4% in Shanghai, and Seg, which dropped 4.4%.
Class A shares are limited to local investors and Class B
shares technically are limited to foreign investors but
also are traded by local investors. (The Asian Wall Street
Journal  22-Dec-1999)

NPH INTERNATIONAL: Narrows six-month loss                  
NPH International yesterday saw its interim net loss narrow
by 25.6% to $10.06M helped by an exceptional gain of $3.5M.  
Turnover fell 57.6% to $11.8M under a weak economy which
demanded less dried seafood and health products.  For the
six months the company made an exceptional gain of $3.47M
after a $4.48M loss on disposals of investment properties
as well as a $1M loss related to the disposal of other
investment properties.


PT FISKARAGUNG PERKASA: Creditors to auction assets
Creditors of bankrupt PT Fiskaragung Perkasa will sell
fixed assets of the publicly listed salt producer through
an asset auction or a direct offer to an interested
investor, an official said.

Tuti Simorangkir from Makarim & Taira S. law firm, who is
acting as the court-appointed receiver for Fiskaragung,
said creditors were not interested in taking over the
bankrupt company but expressed interest in selling it to a
third party.

"The creditors don't mind if it has to go through an assets
auction or a direct sale to an interested investor, as long
as they can get their money back soon."

But she said sale of the assets at auction would end the
company's chances of continuing its operations.  "If it
happens, Fiskaragung will be immediately liquidated."

Fiskaragung's concern is for its operations to continue,
Tuti added.  Its total debts are US$40.5 million and Rp 18
billion based on the latest data, Tuti said.  "The
creditors are expecting Fiskaragung could be purchased by
investors at the price of its total debts."

One of the creditors' lawyers, Rafael Adrian from Taira
Faisal & Panggabean law firm, said the total value of
Fiskaragung's assets would not cover its total debts of
over $40 million.

"The value of the three lines of equipment Fiskaragung
possesses at its factory are not worth anywhere close to
the amount of debts the company accrued to buy such

He alleged there were indications that part of the loans
for equipment was diverted.  "There was a missing link
between the total loan received and the value of the assets
Fiskaragung currently possess," he said.

Fiskaragung was declared bankrupt in late November by the
Jakarta Commercial Court after it failed to reach a debt
restructuring agreement with its creditors during a debt
payment suspension (PKPU) period granted by the court.
PKPU is the standstill period during which an indebted
company must come up with a debt-restructuring proposal. It
must be approved by a majority vote of creditors.  PKPU
allows the company a maximum 270-day period to negotiate
the debt-restructuring agreement with its creditors;
failure to reach an agreement within the period will lead
to a declaration of bankruptcy by the court.

Fiskaragung's majority creditors were not satisfied with
the debt-restructuring plan and voted to reject it within
the first four months of the PKPU period.  Ten foreign
creditors jointly filed a bankruptcy suit against
Fiskaragung in the Jakarta Commercial Court in May for
failure to repay $29 million in matured debts.  The foreign
creditors are from Hong Kong, South Korea, Malaysia and

The Hong Kong creditors are Hanil Leasing & Finance (HK)
Ltd., Hanmi Leasing and Finance (HK) Ltd., KEB Leasing and
Finance Ltd., CBK Leasing and Finance (HK) Ltd., ORIX Asia
Limited and Hong Kong First Citicorp Leasing (HK) Ltd.
Kyongnam Bank of Korea and Kookmin Bank are from South
Korea, AMMB International from Malaysia and KDLC Leasing
from Singapore. (The Jakarta Post  23-Dec-1999)

PT SINAR SLIPI SEJAHTERA: Has real property seized by IBRA
The Indonesian Bank Restructuring Agency flexed its muscle
by invoking for the first time its special power to seize
assets from a debtor company controlled by former President
Suharto's daughter.

IBRA said Tuesday that it has seized 14 hectares of
property from PT Sinar Slipi Sejahtera after the company
failed to pay its debt to IBRA totaling 433.11 billion
rupiah and $45.2 million.

The move is expected to send a strong message to
recalcitrant Indonesian debtors that IBRA is prepared to
use its power under a special government regulation to
recover over 220 trillion rupiah ($31.01 billion) of debts
under its management. The asset seizure will also dispel
public skepticism that IBRA may be politically too weak to
tackle the large debtors who are well-connected and
powerful cronies of ex-President Suharto.  Sinar Slipi is a
property company controlled by former President Suharto's
daughter Siti Hardijanti Rukmana.

Ibra, formed early last year to reform the crippled banking
sector, inherits a massive amount of debt from closed
banks, state banks and banks taken over by the government,
effectively becoming the country's largest debt collector.
To empower the agency's debt collection, the government
passed a special regulation in February giving IBRA power
to seize assets and cancel contracts deemed unfavorable to
the government.

But even as IBRA wielded its power, it suffered a setback
when the Supreme Court rejected its request to revoke the
bankruptcy decision on the grounded Sempati Air, partly
controlled by Mohamad Hasan, a close associate of ex-
President Suharto, and Mr. Suharto's youngest son, Hutomo
"Tommy" Mandala Putra.  The decision will hurt IBRA's
efforts to recover 220 billion rupiah in debts from the
airline and pursue the airline's directors and shareholders
for possible mismanagement.

IBRA's action on PT Sinar Slipi marks the first time the
agency has invoked the special regulation to seize assets.
"Using the special power to seize assets of Sinar Slipi is
the best option for us, because it's fast," said Augustus
Sani Nugro ho, head of legal division at IBRA.

Despite taking control of the assets, IBRA may still suffer
losses, as the value of the company's assets is estimated
to be 216.8 billion rupiah.  "We'll have to find other
assets," Mr. Nugroho said.

However, tracing other assets of Sinar Slipi could be a
difficult task as there is scanty data on the company's
financial situation, he said.  Mr. Nugroho said the
discrepancy between Sinar Slipi's outstanding debts
and its assets warrants further investigation. If an
investigation shows that the company's funds were misused,
IBRA can hold the shareholders of the company accountable,
he said.

Separately, Indonesia's PT Bank Mandiri will transfer
between the 10 trillion rupiah and 15 trillion rupiah in
bad debts to the IBRA by the end of the year, said Mandiri
President Director Robby Djohan.  He also said he expects
the bank to transfer another five trillion rupiah in bad
debts to the agency next year.  Bank Mandiri was formed in
early August by the merger of PT Bank Ekspor Impor
Indonesia, PT Bank Pembangunan Indonesia, PT Bank Bumi Daya
and PT Bank Dagang Negara. The government is sued 103
trillion rupiah in bonds in October, aimed at boosting the
bank's capital. However, the bonds were issued 2 1/2 months
late, a factor that forced Mandiri to be a net borrower
in the interbank market.

Speaking about the bank's performance, Mr. Djohan said
Mandiri booked between nine trillion rupiah and 10 trillion
rupiah in losses because of negative interest spreads since
the merger. He said the bank as of Dec. 20 had 31 trillion
rupiah in loan provisions and 12 trillion rupiah in
interbank claims.  The IBRA Tuesday said it will pay a
total of 1.09 trillion rupiah in interbank claims to
Mandiri and five other local banks before the end of
the year.

IBRA's Deputy Chairman Sumantri Slamet said the amount
represents 11 claims out of 216 claims filed to the agency.
The claims that will be paid include those filed by PT Bank
Internasional Indonesia, PT Bank Bahari, PT Bank Putera
Multikarsa, PT Bank Pan Indonesia, PT Bank Century
Intervest Corp., and PT Bank Mandiri. (The Asian Wall
Street Journal  22-Dec-1999)


MITSUBISHI MOTORS CORP.: To cut debt,assembly line,labor
Mitsubishi Motors Corp. (7211) will reduce its interest-
bearing debt, eliminate one domestic assembly line and
shrink its administrative work force by 13% under its new
business plan, The Nihon Keizai Shimbun learned Wednesday.

The restructuring blueprint, which runs through fiscal
2003, is expected to be announced Friday. Mitsubishi Motors
aims to slice its groupwide interest-bearing debt to 1
trillion yen, from 1.75 trillion yen as of Sept. 30,
according to sources familiar with the plan.

To reach that goal, the automaker plans to trim its
administrative work force from 8,000 to 7,000. It also
wants to lower its break-even point by 20-30% in the
passenger car division, compared with an originally
targeted cut of 16%.

Aiming to boost the independent profitability of its
minicar operations, Mitsubishi Motors plans to set up a
separate minicar headquarters in fiscal 2000. As part of
that move it will eliminate one assembly line at its plant
in Okayama Prefecture, which has five lines.

The company will also consider shrinking operations in
Europe as it focuses resources on three core markets:
Japan, the rest of Asia and the U.S.  Although white-collar
job cuts are expected to be stepped up, Mitsubishi Motors
plans to add 300 employees in R&D.  (Nikkei  23-Dec-1999)

SUMITOMO METAL INDUSTRIES: Shares fall on profit-taking
TOYOTA MOTOR: Shares fall on profit-taking
Shares fell on profit-taking and worries about the outcome
of a meeting of the U.S. Federal Reserve's policy board.
Toyota Motor fell 5.5%, hit by profit-taking after recent
rallies and Sumitomo Metal Industries was the most active
issue on the First Section of the Tokyo Stock Exchange,
declining 5%.
Decliners outnumbered advancers on the Tokyo Stock
Exchange's First Section, with 739 issues falling, 485
issues rising and 116 unchanged.  Volume on the First
Section of the Tokyo Stock Exchange was estimated at
452.04 million shares, down from 500.92 million shares
Monday.  Twenty-three of the 36 industry sub-indexes that
make up the broader index fell. The biggest decliners were
fishery, automobiles and trading company stocks, all down
by more than 2%.  (The Asian Wall Street Journal  22-Dec-


DAEWOO CORP.: Key Daewoo unit US$2.5b poorer
Daewoo Corp is worth about US$2.5 billion less than
expected, according to the latest due diligence. That will
make it more difficult for domestic and foreign creditors
to reach a debt restructuring agreement for the unit and
heightens the possibility of Daewoo's Group's biggest and
most indebted affiliate being placed in court receivership.

It also raises the likelihood of Daewoo becoming Korea's
biggest corporate failure.  Daewoo Corp is one of two key
units that hold most of the group's $6.3 billion debt from
foreign banks and bond-holders.  The chances that it is
headed for receivership yesterday increased when foreign
creditors rejected an offer from domestic creditors to buy
out Daewoo Group's foreign debt.  They said a blueprint for
saving the group units will not be accepted until domestic
lenders reconsider the offer.

"What's important for now is how they can cap losses,
rather than how much they can recover their money," Rhee
Nam-uh, head of research at Samsung Securities, said.
"Putting Daewoo Corp under court receivership is
inevitable, because no-one would want to pour more money
into a company with dubious prospects."

Lee Hun-jai, chairman of Korea's Financial Supervisory
Commission, yesterday said the government would put Daewoo
Corp under court receivership should debt talks with
foreign creditors fall through.  Such a move may topple
other Daewoo Group units and their tens of thousands of
suppliers. This is because Daewoo Corp, besides being the
trade and construction unit as well as the group's parent
company, was the financial backbone for the conglomerate.

Daewoo Group's affiliates are estimated to have more than
10,000 suppliers who make about five trillion won (about
HK$34.24 billion) worth of transactions a year, according
to a survey by the Commerce, Industry and Energy Ministry.
Daewoo Corp provided the most loans and debt-payment
guarantees to other group units at home as well as

A final due diligence almost completed on its assets now
shows its net worth is about 2.8 trillion won less than the
14.5 trillion won evaluated two months ago.  That means
both domestic and foreign creditors will have to bear more
losses, said officials at Korea First Bank, Daewoo Corp's
main domestic creditor.  It also means there may be nothing
worth rescuing in the unit, according to one analyst.

"A dilemma that Daewoo Corp's creditors are facing is the
company has no tangible facilities like its heavy machinery
and car-making group affiliates," Lee Keun-mo, head of
research at Good Morning Securities, said. (South China
Morning Post  23-Dec-1999)

DAEWOO GROUP: Foreign creditors reject buyout proposal
Foreign creditors yesterday rejected a debt buy-out
proposal for the failed Daewoo Group, as US auto giant
General Motors Corp. strengthened its bid for the group's
auto business.

"(We) cannot accept the buyout proposal as it was proposed
by the Daewoo advisors," the committee of foreign bank
creditors said in a statement.

The committee urged South Korea's government and local
creditors to present a "realistic solution which all of the
foreign creditors may resonably accept."  The debt-
rehabiliation proposal drawn up by domestic creditors was
based on "inaccurate financial data," it said, adding that
foreign creditors had not been given sufficient access to
information on the group's financial status.  South Korean
financial officials have warned foreign creditors that if
they do not agree to the buy-out package, key  Daewoo units
could be put into receivership, causing them even greater

"We have not received any formal response from foreign
creditors. They appear to be asking for a new proposal," an
official at the government-guided Corporate Restructuring
Coordination Committee told AFP.

They said the move by foreign creditors must not delay the
group's rehabilitation plans, including the proposed sale
of Daewoo Motor Co.  Daewoo Motor will be sold off through
an auction open only to selected bidders, the Financial
Supervisory Commission said yesterday. The limited auction
is seen as putting General Motors in the best position.

The Daewoo Group is being dismantled after it collapsed in
August under the weight of about $77 billion in debt. But
its rehabilitation has been delayed by the lack of support
from foreign creditors.  Financial officials believe
foreign creditors are using "delay tactics" to win bargain
basement prices in the sale of Daewoo assets.

In yesterday's statement, foreign creditors said the buy-
out proposal was based on the assumption that each of
Daewoo units had operated as an independent coporation.
In fact, Daewoo units had operated as an single entity in
funding and management, with Daewoo Corp.'s borrowings used
to support other subsidiaries, they said.  (Business Day

DAEWOO MOTOR: GM offering 1/3 equity stake to creditors
General Motors of the US has proposed to Daewoo Motor's
creditors that they should convert part of Daewoo Motor's
debts into equities.

According to the Asian Wall Street Journal's December 21
edition, Louis Hughes, the executive vice-president who was
leading GM's negotiation to takeover Daewoo Motor was
quoted as saying that GM is offering Daewoo's creditors one
third equity stake in exchange for an undisclosed part of
Daewoo Motor's debts.

The newspaper said Hughes remarks represented the American
motor company's first explicit announcement that it is
willing to pay between US$5.3 billion to US$6.2 billion for
some of Daewoo Motor's assets.  Hughes also reported that
the ongoing negotiations to takeover Daewoo Motor could
wrap up in the next 30-45 days. He was quoted as saying
that he was very encouraged by the meetings he had with
Korean government officials and representatives from
creditors last week.

However, Hughes noted if the negotiation drags on too long,
the entire deal can be delayed until after April next year,
when the nation's general elections are held.  (Digital
ChosunIlbo  22-Dec-1999)

DAEWOO MOTOR: Local opposition to GM increases
Despite reports that General Motors is offering to assume a
third of Daewoo Motor's debt as part of its takeover bid,
the local business community is becoming increasingly
vociferous in its opposition to the U.S. carmaker's plans.

In the latest development, the Federation of Korean
Industries (FKI), the largest trade association for the
chaebol, yesterday reiterated its intention to deter GM's
attempt to take over Daewoo Motor.  FKI Executive Deputy
Chairman Sohn Byung-doo, meeting with GM Korea president
Allan Perriton and GM Korea director David Jerome,
expressed concerns that GM's acquisition of the Daewoo unit
would devastate Korea's auto industry.

Meanwhile, an FKI-sponsored opinion poll found an
overwhelming percentage of Koreans are opposed to GM's bid,
citing adverse effects on the economy as the main reason
for their opposition.  Of 2,622 adults polled, the FKI-
affiliated Korea Center for Free Enterprise (CFE) survey
found 52 percent objected to Daewoo's sale to GM, whereas
only 48 percent showed a positive response.

Kim So-rim, an executive of the Korea Automobile
Manufacturers' Association (KAMA), said GM's real
intentions toward Daewoo Motor are extremely questionable.

"If Daewoo Motor falls into the hands of GM, it will be
difficult to expect the American company to contribute to
the development of the Korean auto industry," said Kim. "GM
will surely pay little attention to expanding Daewoo plants
and employment, let alone investments in technology."

The KAMA executive then demanded Daewoo Motor be handed
over to domestic companies, rather than foreigners, as it
would be more beneficial to the overall industrial
development, he said. An unnamed participant also insisted
that the Daewoo unit is a leading player in the Korean
economy, warning policymakers not to sell off the automaker
to GM.

Earlier last week, FKI Secreatary-General Yu Han-soo said
GM's control of Daewoo will drive domestic automakers, like
Hyundai Motor and Kia Motors, out of business.  Hyundai
Motor also raised strong objections to GM's bid and
expressed an interest in Daewoo's car plant in Poland,
forcing the Korean government to change its policy in favor
of an open international sale. Faced with the escalating
negative sentiment, GM conducted various public relations
efforts, but with little success.

According to sources, GM's request for meeting with FKI
deputy Chairman Sohn had originally been rejected by the
chaebol association.

"GM indicated its wish to visit the FKI in an effort to
allay the widespread anti-GM sentiment, but were given a
negative response," said one of Sohn's deputies. "Only
after repeated desperate pleas from GM, Sohn agreed to meet
the GM officials briefly."

FKI spokesman Lee Yong-hwan said the federation is
considering launching various measures to deter GM's bid.
Meanwhile, the Financial Supervisory Commission spokesman
Kim Young-jae confirmed the government's official stance to
sell Daewoo through limited open bidding. Kim said the
creditors will screen letters of intent from all aspiring
buyers until the end of February before awarding the
exclusive negotiating right to a single bidder.  (Korea
Herald  23-Dec-1999)

DAEWOO MOTOR: GM not keen on auction idea
General Motors, the US automotive group seeking an agreed
takeover of Daewoo Motor, warned yesterday that a lengthy
auction for the debt-burdened South Korean carmaker could
hamper its recovery prospects.

Lou Hughes, the GM executive leading the bid proposal,
said: "An auction could incur very significant costs
through having such a large company functioning leaderless
for several months."

Mr Hughes, executive vice-president responsible for new
business strategy, said Daewoo required rapid action to
resolve problems dominated by a $16bn debt, a management
vacuum and factories operating at less than 50 per cent
capacity.  He was speaking after South Korea's Financial
Supervisory Commission indicated it would hold a limited
auction for Daewoo Motor, which could prompt offers from
Ford and DaimlerChrysler.

An FSC spokesman predicted that the auction process could
last several months. The move follows the expiry last month
of exclusive negotiations with GM.  Mr Hughes refused to
confirm reports that GM has offered $6bn-$7bn for Daewoo
Motor, which it managed as part of a joint venture until
1992.  Nevertheless, he said the group had made a formal
offer to the FSC and creditors led by the Korean
Development Bank.

"We are interested in giving creditors an equity stake in
the company to enable them to avoid a debt write-off," he
added. "My preference would be 25 per cent for creditors
and 75 per cent for GM."

The world's largest carmaker is anxious to secure control
of Daewoo to strengthen its modest presence in Asia and to
develop a "value brand" in Europe alongside its Adam Opel
subsidiary.  In an attempt to counter opposition from the
Federation of Korean Industries and Daewoo labour unions,
Mr Hughes said the GM offer included all of Daewoo's Korean
assets and a promise to develop the company as GM's
research hub in Asia.

He also vowed to develop the carmaker's own platforms and
engineering expertise rather than "simply inserting" GM
technology.  Industry analysts said GM remained best placed
to win control of the company, describing Ford and
DaimlerChrysler's reported interest as "calculated spoiling
tactics".  On Wednesday, Mr Hughes tried to avert any
opposition among Daewoo suppliers by promising that a
successful bid would give them access to GM's global
purchasing programme. (Financial Times  23-Dec-1999)

DAEWOO MOTOR: Samsung eliminates itself from the running
Samsung Group said it would not make an offer for Daewoo
Motor, denying speculation that it would become a second
challenger to GM's bid. Korea's second-largest industrial
group, Samsung has been trying to get rid of its auto
business since July when the group filed for receivership
for Samsung Motor.

A Samsung executive also strongly denied rumors that
Samsung may form a strategic alliance with a foreign firm
to enter the bidding war. "Reports that Samsung is
contacting GM to jointly take over Daewoo Motor are totally
groundless," he said.
Samsung, which officially quit the auto business last fall
after the bankruptcy of Samsung Motors, has long been
mentioned as one of the potential bidders for the Daewoo
carmaking unit.

GM, the world's largest car maker, has said it was ready to
take over all Daewoo Motor assets at home and abroad
provided creditors - mostly state-run banks - wrote off a
large chunk of its 18.6 trillion won (HK$127 billion) debt.
(Hong Kong Standard, Korea Herald  22-Dec-1999)

SAMSUNG GROUP: Stock slips
Shares of Samsung slumped 8.6% and Hyundai Engineering &
Construction slid 2.5%.  The composite index fell as local
institutions continued to sell stocks to obtain cash ahead
of the year end, analysts said. Decliners overwhelmed
advancers 762 to 101, while 27 stocks were unchanged.  A
total of 34 stocks fell by the 15% daily limit, while eight
issues rose by the daily limit.  (The Asian Wall Street
Journal  22-Dec-1999)

KOREA FIRST BANK: Newbridge purchase deal finally closes
Newbridge Capital of the United States and the Korean
government closed their deal on the takeover of Korea First
Bank (KFB) yesterday, signing a "definite agreement" for a
transfer of the bank's majority 51 percent stake.

The deal was priced at 500 billion won ($420 million) with
the bank's capital adequacy ratio expected to improve to 10
percent.  The U.S. investor agreed to provide another 200
billion won ($177 million) over the next two years as bank
earnings improve.

Newbridge indicated that their definition of "improved bank
earnings" is the generation of at least 100 billion won in
income each year until 2001.  The Korean government in
return committed to offer a two-year guarantee to cover
KFB's non-performing loans.  For the workout loans and
liabilities held by other financial institutions, the
government guarantee is stretched over the next three

With the transfer of full management authority, the U.S.
investor decided to give 5 percent rights to Seoul for new
shares.  Newbridge will pay on Jan. 18, after the Y2K, or
millennium bug, issue is cleared here.  During the press
conference marking the deal's closure, Newbridge announced
a new management line up.

Wilfred Horie was named president and CEO of the bank,
Robert Barnum, board chairman and Korea's former trade
minister Kim Chul- soo, vice-chairman of the board.
Horie served as vice-president of Associates of First
Capital Corp, the largest finance company on the New York
Stock Exchange.  Barnum was former president of American
Saving Bank, a troubled U.S. bank which he turned around
back to profitablity.  Horie said the bank's business would
now focus on the retail market instead of large dealings
with corporate clients.

"We will be focusing on consumer banking," Horie said to
more than 50 reporters during a press conference at KFB

With regard to the number of employees and the size of
branches, Newbridge sais they are just about right, meaning
there will be no drastic changes to present conditions.
For the bank's new management, the U.S. investor said their
own staff would fill at least three major positions.

"Management will focus on traditional western policy. The
chief credit officer, chief financial officer and chief
technology officer will come from the Newbridge side,"
Horie said.

In regards to the bank's controversial New York branch,
Newbridge said it would continue to work on setting up a
new form of financial institution.  KFB recently returned
its bank license to the state of New York after 2 years of
operations and had been seeking ways to set up a new
company to maintain its presence in the U.S.  Under the
U.S. Banking Holding Act, private companies like Newbridge
are not permitted to own shares in the banking sector
within U.S. jurisdiction.  With KFB's presence in New York,
Newbridge would not have been able to close the deal.

Newbridge won the right to take over KFB in competition
with other major banking concerns, including the British
HSBC, on new year's eve 1998.  KFB currently operates 336
branches across the nation, three overseas offices, and two
international joint venture firms.  It has 4,809 employees,
down from over 8,000 before the financial crisis and has a
total of 4.5 trillion won in paid-in capital.  The total
assets of the bank at the end of Oct. were 32.809 trillion

Two leading investment firms, the Texas Pacific Group and
Richard C. Blum & Associates established the U.S. private
equity investor.  Newbridge and its affiliates currently
manage $10 billion in commercial capital.  (Korea Times  


DAI-ICHI INDUSTRIES: Posts annual loss
DAI-ICHI Industries Bhd, which reported a group pre-tax
loss of RM15.2mil for its fiscal year ended June 30, 1999,
expects a rebound this year with improved market
conditions.  Its chairman and managing director Tai Keik
Hock said he expected at least RM1mil in profit from new
orders in the first quarter of 2000.  (Star Online  23-Dec-

MYCOM BHD: Predicts mid-2000 restructure completion
Mycom Bhd hopes to complete its restructuring exercise,
which includes an overhaul of its financial position, by
the middle of next year.

"We hope to complete it (the restructuring) by June 2000,"
Mycom managing director Datuk Yap Yong Seong told reporters
after the company's AGM in Kuala Lumpur yesterday. He
declined, however, to elaborate.

Mycom chairman Tan Sri Jaffar Abdul said in the company's
latest annual report that it was finalising negotiation
with bankers to restructure its financial position.
As a result, the group's gearing should start to reduce
while the terms of its financing would be more matching to
those of its investments within the foreseeable future, he

"With further divestment looking more realisable now that
the economy is again on a growth trend, our goal of
restoring Mycom's financial health seems to be within reach
once we complete the overhaul of our financial position,"
Jaffar added.

Jaffar said due to collateral sales by bankers to reduce
debt balances towards the end of the financial year ended
June 30, 1999, Mycom's stake in Olympia Industries Bhd had
been reduced to below 50%.  Thus, Olympia was no longer its
subsidiary although management control vested with Mycom.

"This will reduce the contribution of the financial
services sector (via Olympia) to the future value of Mycom.
However, we expect the value derived from Mycom's focus on
the property and resource-based sectors to be able to
compensate for the lower contribution from the financial
services sector," he added.

Mycom's resource-based activities include oil palm
plantations and the granite industry.  Jaffar said Mycom's
oil palm plantation division had completed the development
of 3,700ha as of June this year with an additional 3,100ha
at various stages of development.

"In the near term, barring any unforeseen circumstances,
the division is expected to register further growth in
earnings as more areas are brought into harvesting," he

Jaffar said Mycom had also been revising the development
plans for some of its land bank to reposition itself to tap
further into the low- to medium-cost residential property
sector.  He said the property companies within the Mycom
group were expected to launch a total of 640 units next
year with sales amounting to RM94.5mil.  He added that
Mycom was reassessing the timing for resumption of
development of its Duta Grand Hyatt Hotel project.

"We are now discussing with project financiers to ensure
that the project can capture the turnaround of the hotel
industry which is expected to occur in the medium term," he

Jaffar said Mycom's construction division had in hand
contracts worth RM100mil which should sustain its
operations until the end of 2000.  Jupiter Securities Sdn
Bhd, which Mycom owns through its investment in Olympia,
was placed under special administrators in April this year
to expedite debt restructuring negotiations with all its

Jaffar said the proposed restructuring scheme was approved
by the creditors and was now awaiting approval from all the
relevant authorities.

"Once the scheme is implemented, trading restrictions will
be removed and Jupiter will be on a stronger financial
footing to benefit from the improved performance of the
stock market," he said.

Mycom posted a pre-tax loss of RM382.1mil for its financial
year ended June 30, 1999. Its main investment, Olympia,
incurred a pre-tax loss of RM267.2mil for the year. (Star
Online  23-Dec-1999)

TERAMAJU SDN: Workout plan okayed by secured creditors
The workout proposal by the special administrators of
plywood and veneer manufacturer Teramaju Sdn Bhd has been
accepted by the company's secured creditors.

In a statement yesterday, the special administrators said
an independent advisor, Arab-Malaysian Merchant Bank Bhd,
had reviewed the proposal and concluded that the deal was
reasonable and fair to all creditors and shareholders of

Under the workout proposal, secured creditors would
received an upfront cash payment of RM3mil and the
conversion of the balance of RM11.51mil (after a 25%
waiver) into a five-year term loan.  The workout proposal
for the bank creditor would involve a 25% waiver of the
amount owed and the conversion of the balance of RM11.98mil
into a five-year term loan.

For the hire-purchase creditor, the proposal would involved
the conversion of a RM3.39mil debt into a five-year term
loan, and for the shareholders, it would involve a 100%
waiver on an inter-company debt of RM10.7mil.  Under the
Pengurusan Danaharta Nasional Bhd Act 1998, the workout
proposal is binding on all creditors and shareholders of
Teramaju.  (Star Online 23-Dec-1999)


HERITAGE PARK: Investors hail PEA contract rescission
Investors in the Heritage Park project hailed the decision
of the new management of Public Estates Authority (PEA) to
junk a multimillion-peso contract with a Chinese contractor
following allegations that the latter has been overpaid by
close to P70 million for work it did not complete.

The investors said Edison Construction owned by Chinese
businessman Elpidio Uy obtained several major contracts
from PEA, some of which were sealed during the last months
of the Ramos administration, related to the development of
Heritage Park into a world-class memorial park.

The contracts, however, were suspended in October this year
following current PEA general manager Carlos Doble's
directive to Uy to explain the major delays in the project.
The investors had clamored for a probe of allegations that
Uy was paid the P217 million by the old PEA management
equivalent to 82.78 percent completion when Uy had
allegedly only completed 68.21 percent of the project.

The investors said they were concerned that the project has
already been delayed by two years due to the slippages,
despite the fact that the project has sufficient funding.
The investors said the contracts, several of which did not
go through public bidding, had already been earlier
questioned by Sen. Franklin Drilon.

Drilon had directed former PEA chair Arsenio Yulo to
explain allegations that the former PEA management had
favored Uy. PEA employees had charged that Uy was awarded
several negotiated contracts "despite his poor
Yulo denied the allegations.  PEA sources said new PEA
general manager Carlos Doble had junked the Uy contract
following an instruction from the Bases Conversion
Development Authority (BCDA) which owns the Heritage Park
for the government.  Uy sued Doble and the executives of
BCDA following the junking of the contracts.  The investors
said they were poised to fully take over the Heritage Park
project. Among the major investors include Allied Bank. The
project underwriter is the Philippine National Bank.
(Philippine Daily Inquirer  23-Dec-1999)

UNIWIDE GROUP: Paragon sale a start, fresh capital needed
Notwithstanding the sale of its convenience store network,
First Paragon Corp., the entire Gow-owned group will need
more than PhP1 billion ($24.7 million) in fresh equity and
a serious refocusing of business to be rehabilitated.

Several debt-for-asset swaps are being considered.
Under the rehabilitation plan, at least PhP1 billion is
"required immediately" to fully restore the operation of
the group's retail business, particularly that of the
Uniwide Sales and Warehouse Club, Inc. (USWCI).

The full amount will be used for stock replenishment of all
the stores, and an additional PhP500 million ($12.4
million) will also be needed for capital expenditures, the
Uniwide receivership committee said.  The Uniwide group
suffered from liquidity problems as a result of the
economic crunch and filed for suspension of debt payments
and rehabilitation with the SEC last June 26. The firm's
total unsettled obligations amounted to over PhP11.1
billion ($274.5 million) as of June.

Once the proposed rehabilitation plan is given the go
signal (by the Commission), the Uniwide group's retail
business will have to recapture its lost market share and
generate revenues of at least PhP12 billion ($296.8
million) on the first year and achieve profitability on the
third year of operations.  Under the plan, Uniwide's retail
business will have to implement a more aggressive marketing
plan through advertising and promotional campaigns.  
(Business World  22-Dec-1999)

UNIWIDE SALES INC.: I Mart buys convenience store network
The Securities and Exchange Commission has approved the
sale of the convenience store network of debt-ridden
Uniwide Sales Inc. to I Mart International Corp., operator
of the I Mart retail chain.

The SEC hearing panel headed by SEC Chair Perfecto R. Yasay
Jr. ordered that the proceeds of the sale of the Uniwide
family stores amounting to P145 million would be held in
escrow with Solidbank Corp. subject to certain terms and
conditions as provided in a memorandum of agreement.

The Uniwide receivership committee recommended the sale of
the assets of First Paragon Corp., which include both
tangible properties and leasehold rights, to I Mart as it
submitted the best bid of P145 million.  First Paragon owns
and operates 44 Uniwide family stores located in various
leased areas in Luzon while I Mart owns and operates retail
stores called IMart in the Philippines based in Quezon

Uniwide receivership chair Monico V. Jacob said the
Philippine Bank of Communications and Equitable Banking
Corp., which holds the leasehold rights, did not object to
the sale provided their respective rights were protected.
The receivership committee moved for the sale of the
convenience store network as the assets were fast
deteriorating and would be better off converted into cash
to be held in escrow.

The assets of First Paragon were the first of the Uniwide
group's assets to be sold to raise cash to meet over P11
billion in debt obligations to its creditor banks.  The
memorandum of agreement preceding the sale of First Paragon
was signed last Dec. 9 and is expected to be closed by
February next year.

According to the memorandum of agreement, the escrow
agreement would be for 60 days from the execution of the
agreement within which First Paragon would transfer the
assets of the Uniwide family stores to I-Mart.

The escrow agent would be authorized to release funds to
First Paragon upon delivery of certain documents such as
deed of assignment of lease to I-Mart and required orders
from the SEC. (Philippine Daily Inquirer  23-Dec-1999)


CYCLE & CARRIAGE: Stock continues slide for 3rd day
The stock of motoring giant Cycle & Carriage slided for the
third consecutive day, following last Friday's announcement
that it was losing its Mercedes Benz wholesale business to
its principal, DaimlerChrysler.

It hit a low of $5.05 yesterday before closing 30 cents
lower at its year low of $5.25. The stock has tumbled 26
per cent this week, erasing some $440 million of its market
capitalisation.  Some analysts see another 20 per cent
downside, citing uncertainty over how the company will cope
with the loss of a lucrative part of its Mercedes Benz

>From Jan 1, 2000, C&C will give up its wholesale business
to Daimler-Chrysler. And from Jan 1, 2001, the Singapore
company will hold the exclusive distribution rights in
Singapore for all aspects of the Mercedes Benz operations
for five years after which the rights would be
automatically renewed for periods of one year each.
Brokers, analysts and fund managers remain pessimistic
about the immediate prospects for the stock price and the
company. They reckon that the company could see a sharp
squeeze on its margins.

Said JM Sassoon's Lai Yeu Huan: "It is really hard to tell
how the margin is shared between the wholesale and the
distribution as they tend to be lumped together. But I
reckon pre-tax earnings from the Mercedes Benz franchise
will fall from $40 million in FY2000 to just $9 million in

Most research houses calculate that, on a company-wide
basis, the loss of the Mercedes Benz wholesale business
would wipe out anywhere from 15 to 20 per cent of the
company's profits for the year 2001.  DBS Securities has
cut its FY01 earnings forecast for the company by 15 per
cent to $90.6 million, or 38.7 cents per share to reflect
the changes.

JM Sassoon's Mr Lai forecasts net earnings to rise from $94
million in FY99 to $101 million in FY2000, then dive 15 per
cent to $85 million in FY2001.  Analysts see the C&C
development as being generally negative for motoring
stocks, and point out that the episode illustrated the
dangers that motoring companies here faced. The other
counters with motoring interests include Tan Chong
International (Nissan), Inchcape (Toyota), Sime Singapore
(BMW), Wearnes International (Jaguar) and ST Engineering
(Opel). Share prices of these companies were relatively
stable yesterday.  (Business Times  23-Dec-1999)

THAKRAL CORP.: Posts first-half loss,rehab plan by Q1 2000
Thakral Corp has continued to bleed, announcing yesterday a
$100.6 million bottomline loss for the six months to Sept
30. In the preceding 12 months, it lost a total of $232

To get back on its feet, Thakral is likely to finalise a
debt restructuring deal with its bankers by the first
quarter of next year.  Together with measures to divest
non-core assets and maximise working capital, Thakral's
balance sheet should be considerably improved in the next
12 months and the company should no longer be in breach of
any financial covenants, said Arthur Andersen partner Nicky
Tan at a press briefing yesterday. Arthur Andersen is
Thakral's independent financial adviser.

Thakral owes its bankers just under $500 million, most
pressing of which is a US$250 million (S$417.5 million)
syndicated loan maturing in April 2000. Of this, US$20
million was repaid in the first half.  The group plans to
divest $60 million in non-core assets in the next six to 12
months. A further $60 million in working capital needs will
also be shaved off in the same period, through better
inventory and receivables management.

Among the assets likely to be sold are Thakral's Australian
hotel properties, its stake in its listed Australian unit,
a warehouse in Hongkong, and other listed securities in the
region. The group is drawing up a list of more non-core
assets to be sold later, while also studying "various
options" to raise $120-150 million in additional equity in
the next 12 months, in order to recapitalise its balance
sheet, cut debts and fuel growth.

Options under consideration include roping in investors and
a rights issue, said Mr Tan. The group is also in
preliminary discussions with a financial institution
interested in making a "significant direct investment" in
Thakral, said deputy chief executive Elie Baroudi.

Despite its first-half loss, Thakral expects to make an
operational profit in the second half, although
extraordinary losses from the sale of non-core assets are
still expected. The group hopes to break even at the bottom
line.  Loss per share in the first half was 10.07 cents,
compared with earnings per share of 4.19 cents at the
interim last year. Net tangible asset backing per share was
slashed from 62.41 cents to 3.34 cents.

The group chalked up exchange losses of $41.8 million from
yen option contracts carried forward from last year.
Inventory writedowns came to $20.5 million, and there were
doubtful debt provisions of $7.4 million. Operating loss
was $32.4 million.

Thakral has no more outstanding yen option contracts. It
has also renegotiated its purchase terms with Japanese
suppliers to US dollars and will not need to hedge its yen
exposure through further yen option contracts, said Mr
Baroudi.  It also shortened ordering times to better manage
its inventory. The group has also closed its "unviable" TV
manufacturing plant in Chengdu, China.

Sales fell 19 per cent to $345.3 million as demand in its
core China and Hongkong markets stayed weak, affecting
margins and causing some items to be sold at a slight loss.
"We've almost stopped hoping for a recovery," said managing
director Inder Bethal Singh Thakral. "We're focusing on how
to be profitable with the market as it stands today."

Its IT distribution group, which deals in IBM and Hewlett-
Packard products, was hit by price pressures and dumping by
local suppliers in the first half, and incurred losses from
inventory writedowns and logistics inefficiencies.
Thakral said its core audio-visual distribution margins
improved in October and November, and should grow from 4.1
per cent to 6.2 per cent in the second half.

The group is also developing an Internet and e-commerce
strategy. It is "in the process of procuring" Internet
service licences in three main Chinese cities and will link
up with "international operators" if successful.  It is
also discussing with a major customer in China an e-
commerce initiative involving delivering its home
entertainment products online.

In the meantime, three Thakral-nominated board members --
Kuldip Singh Thakral, Rajinderpal Singh Thakral Butra and
Kanwaljeet Singh Dhillon -- have resigned, leaving five
independent directors and four Thakral nominees on the
board. Member of Parliament Heng Chiang Meng joined
Thakral's board yesterday. (Singapore Business Times  23-

THE HOUR GLASS: Posts first-half loss                      
Luxury watch manufacturer and retailer The Hour Glass has
sunk deeper into the red with losses of $7.1 million at
half-time compared with $4.9 million last year.

The company yesterday said it intended to review its
business strategy, and has engaged Arthur Andersen Global
Corporate Finance (Singapore) to do so.  For the six months
ended Sept 30, 1999, group turnover came to $19.9 million,
up 17 per cent from previously.

But the significant improvements in the retail and
wholesale business sectors were not enough to cover losses
by Swiss watch manufacturing operations. The retail and
wholesale sector posted operating profits of $4 million
from a loss of $900,000 last year. However, the Swiss
subsidiaries chalked up operating losses of $9.2 million.

"In terms of Swiss watch manufacturing, our expertise may
not be as good as we should be. We are looking for
strategic partners who can help us strengthen our brands,"
said Henry Tay, THG executive chairman.

He said the strategy to integrate backwards into
manufacturing and to earn profits from three levels --
retailing, wholesaling and manufacturing -- was still
sound.  "But with the changes and consolidation taking
place in the watch industry, we have to relook this
strategy and maximise our options."

Arthur Andersen, he said, would recommend the best way
forward. Jeff Pirie, director of Arthur Andersen, added:
"It is really part of the evolution of strategy of The Hour
Glass. It is not a kneejerk reaction and should be seen as
a good thing."

And to gain more flexibility in carrying out its future
strategy, THG yesterday said it had bought out the minority
shareholders in Gerald Genta SA and Daniel Roth SA. The
company took over the remaining 34 per cent of Gerald Genta
and 49 per cent of Daniel Roth. It paid 425,000 Swiss
francs ($454,000) for the Gerald Genta stake and a nominal
three francs for the Daniel Roth stake.

Under the Gerald Genta deal, Mr Gerald Genta is freed from
his obligations as a guarantor for bank credit facilities
amounting to 600,000 francs and THG assumes contingent tax
liabilities of up to 100,000 francs. In Daniel Roth's case,
the three minority shareholders -- Robert Sia Sok Hia,
Daniel Roth and Creation Bel Art SA -- irrevocably waived
their loans, and accrued interest, to Daniel Roth SA. The
amount comes to 2.44 million francs. Yesterday, the THG
stock rose three cents to 65 cents with 26,000 shares
traded.  (Business Times  23-Dec-1999)


EMC: Reports rehab plan progress to SET
Mr. Komol Wongpornpenpap, President of EMC has reported to
the Stock Exchange of Thailand (SET) that it presently is
in the negotiation process for the debt-restructuring with
various financial institutions and  appointed IFCT Advisory
Co., Ltd. as its financial  advisor on October 8, 1999, and
Siam Premier Co., Ltd. as its legal advisor on November 1,
1999. EMC filed the report in response to SET's notice of
intention to delist the company.

Up to the present, it told the SET, EMC's financial advisor
has been working on this issue by having inspected the
Company's information and arranged the financial plan by
having held four meetings on the Debt-Structure
Arrangement, which is to be proposed to the creditor
financial institutions. At the same time, EMC's legal
advisor has examined the Company's legal documents and
information since November 22, 1999, by which the summary
and the legal document inspection report are expected to be
obtained shortly.

Nonetheless, on November 1, 1999, Bangkok Bank (Pcl.),
EMC's creditor financial institution, was informed by the
Bank of Thailand via the Office of the Board of Debt-
Restructuring Promotion that EMC, a debtor of Bangkok Bank,
was grouped in the third  category of the debtors required
to restructure the debts (Kor Por Nor 3), which directs EMC
to restructure its debt in accordance with the debt-
restructuring process stipulated by the Bank of Thailand.

EMC signed its name to restructure its debt in accordance
with the Kor Por Nor's framework and has informed all
relevant parties about this issue on December 1, 1999.
There will be the first creditors meeting on December 15,
1999, which is in accordance with the debt restructuring
framework designated by the Bank of Thailand.  EMC expects
that the debt-restructuring process will be completed
within the first quarter of the year 2000.

EMC hence would like to inform that so far EMC has been
urgently processing its debt-restructuring. However, such a
process has been slower than stipulated because a large
amount of details are being involved, negotiations
generally take time and also obstructed by non-decider or
non-negotiator of the closed financial institution. EMC
will periodically inform the Stock Exchange of Thailand
about the progress of its debt-restructuring after the
debt-restructuring negotiation is completed or when
progress is achieved.  (Stock Exchange of Thailand  22-Dec-

NITHI VENTURE CORP.: Boards approve debt restructure plans
Nithi Venture Corporation Plc's boards yesterday approved
several debts restructuring plans, which the company
entered with several creditors between Sep 30 to Dec 20,
1999 totaling Bt 561.94 million (as of Sept 30,1999) which
consisted of outstanding principle of Bt444.07 million and
accrued interest of Bt117.87 million.

The following are details relating to the debt
restructuring arrangements:  
Group 1 creditors: Creditors who extended loans to the
company against assets collateral, and are willing to
continue extending the loan to the company's food and
agricultural business.

Loans from these creditors will be restructured so that all
the outstanding debts plus the facilities will be
transferred to River Kwai International Food Co Ltd (RKI),
a wholly-owned subsidiary. Concurrently, the company will
transfer all of its assets related to food and agricultural
business to RKI in return for this agreement.

Group 2 creditors: Creditors who are partially secured by
some of the company's assets. These creditors agreed to
cancel all accrued interests and some of the principles. In
return, the company will pay installment payments for the
remaining debt until the end of 1999.

Group 3 creditors: Creditors with no collateral against
their loans, and who agreed to forgive all accrued interest
and some of their principles. The remaining debts will be
swapped to convertible debentures.

The company's board approved the followings resolutions:
1) Approved to increase the company's registered from Bt240
million to Bt737.100 million at Bt 10 par value.
2. Approved to issue Bt 248.55 million in convertible
debentures via private placement and allocate 49.71 million
newly issued shares to accommodate the exercise of
convertible debentures.
3) Approved to amend the company's memorandum item 6 and 11
(2) to allow foreigners to hold up to 49 per cent equity
4) Approved to hold shareholders' meeting for exemption of
tender offer for Pavillion Asia Co Ltd and Pavillion Fund
Song the owner of convertible debentures of 152,000 units
and 96,550 units, convertible into 30.4 million shares and
19.310 million shares respectively. To exempt the tender
offer of Pavillion Co Ltd and Pavillion Fund Song, a
minimum of 75 per cent shareholders' consent who are
present is required.
5) Approved the appointment of Viriya Anucharee as a member
of the board of directors. Viriya will assume an
independent directorship role, and serve as a member of the
company's audit committee. (The Nation  22-Dec-1999)

POWER-P PLC: Reports debt rehab agreement to SET
Veerachai Uahvilaijit, Managing Director of Power-P Plc,
has reported to the Stock Exchange of Thailand that the
company has signed a debt restructuring contract with
Kiatnakin Finance Public Company Limited on 16th December

The debt restructuring contracts with all 14 Institutional
Creditors, representing 100% of the total of outstanding
debt, are now well in place.  The main contents of the Debt
Restructuring Agreement which remain the same as follows:

1. The respective Creditors agreed that, instead of the old
interest rates applied by each individual creditors for
failure of debt settlement when due, an annual interest
rate at 16.50% shall apply for interest outstanding on
Principal Sum before the signing of this Debt Restructuring

2. The respective Creditors also agreed that, after signing
the Agreement, the MLR interest rate of Siam Commercial
Bank Public Co., Ltd. shall apply to all creditors for
their respective outstanding principal sums but with a
special schedule allowing partial payments to be made, i.e.
at 4.25% for year 1999, 4.75% for year 2000, 5.25% for year
2001, 6.50% for year 2002, 4.25% for year 2003, 10.75% for
year 2004, and at full MLR rate for years thereafter.

3. The respective Creditors further agreed to extend
repayment period of the Principal Loan by starting from
year 2001 till the total loan is repaid before 26th August
2017, and

4. Following the signing of this Agreement, the respective
Creditors agree to render financial support, on each
individual project basis, as will be submitted by the
Company.  (Stock Exchange of Thailand  23-Dec-1999)

SUBMICRON TECHNOLOGY: Appoints financial adviser for rehab
Submicron Technology Plc has signed an agreement to appoint
Bank of America as its sole financial adviser.  The US bank
will provide financial advisory and investment banking
services related to the Thai wafer manufacturer's debt
restructuring activities, Submicron said in a statement.
In addition, Bank of America would also act as the
exclusive placing agent for any placement of equity
securities issued by Submicron.

"We are confident that the final debt restructuring plan,
and equity placement, will lead to an ultimate win-win
situation for all involved," Submicron chief executive
Charn Uswachoke said.

Mr Charn said that the revival of Submicron, which had been
struggling for years with heavy debts, would lead to the
emergence of an integrated electronics sector that would
include hundreds of supporting industries and generate
substantial export revenue.

"We believe that the business itself will mark the
beginning of the high-tech industry in Thailand, and bring
the country up to par with its regional neighbours," he

Submicron was founded by Mr Charn in 1991. It started
building a factory in 1995, financed by 23 local financial
institutions with a value of more than 19 billion baht.
However, the 1997 economic crisis forced the company to
suspend a planned initial public offering, and creditors
withdrew their support.

Work subsequently stopped at the plant, which at the time
was 80% completed. For the last 18 months, Submicron has
been negotiating with its technical partners, vendors and
private investors, while the manufacturing facility was
being maintained by the company's technical personnel.
(Bangkok Post  23-Dec-1999)

TELECOMASIA CORP.: Signs debt restructuring agreement
Telecomasia (TA), Bangkok's largest phone operator, said
restructuring of 61.8 billion baht of delinquent debt
should be complete by February, after terms of a share sale
to Germany's Kreditanstalt fur Wiederaufbau (KwF) are

The company, more than 40 creditors and Government
officials signed a broad agreement today, three months
after suppliers such as Siemens, Tomen, Mitsui and Lucent
Technologies, and banks such as KfW and Bangkok Bank gave
preliminary approval to the proposal.

The debt overhaul - which would be the second largest since
Thailand devalued the baht and fell into recession in 1997
- calls for about a tenth of debt to be written off,
postponement of principal payments for up to eight years
and the sale of about 24 percent of the enlarged company to
KfW, a German development bank, for $150 million.

"TelecomAsia will be able to reduce the amount of debt
outstanding to 55.1 billion baht from 61.8 billion baht, as
well as meet future debt service obligations," said Vice
Chairman Athueck Asvanund.

The equity sale could come as early as February, after
final terms are set and shareholders approve the overall
plan, he said. The current proposed price is 21.37 cents
for each of 702 million new shares.  TelecomAsia shares
rose 3.25 baht, or 7.2 percent, to 48.25 baht, the highest
since July 29, 1997. Shares were suspending briefly by the
stock exchange, which requested more information on the
debt plan progress.

TelecomAsia has not paid principal and most interest on its
debt for two years. The company, like many largest local
businesses, was squeezed by the July 1997 devaluation,
which increased its foreign-currency debt by more than a
third.  Recession and the closure of three-quarters of
Thailand's finance companies also curbed demand for phones
and telecommunications services.

Other telecom firms, including United Communications
Industry and Total Access Communications, earlier revamped
their debt contracts. Advanced Info Service, the largest
mobile phone operator, sold a fifth of itself this year to
Singapore Telecommunications.  TelecomAsia installed 2.5
million fixed lines in Bangkok.  Barely half have
subscribers. The company also provides Internet services
and is the controlling shareholder of United Broadcasting
Corporation, Thailand's largest pay-TV operator.

Under the plan, current shareholders, led by the
Chearavanont family and its investment arm, Charoen
Pokphand Group, as well as Bell Atlantic, would have the
right to gradually buy KfW's stake back beginning two years
after the German bank invests. The buy-back price is among
the terms still to be hammered out.  Charoen Pokphand
Group's combined stake will fall to 27 percent, from 36
percent with KfW's investment. Bell Atlantic's stake will
decline to 14 percent, from 18 percent.

The German bank's investment will be done through two
units, one the bank itself and the second a Thailand-
registered trust, to keep TelecomAsia as a 51 percent Thai-
owned company.  Talks were accelerated by Thailand's
central bank, which brokered negotiations under a debt
restructuring program that set specific agreement
deadlines, penalties for non-compliance and,in some cases,
binding arbitration. The preliminary agreement on October 1
came on the final day before the company would have had to
be put into bankruptcy court.  

It will use proceeds from the sale to partly repay
unsecured lenders, which account for 13.29 billion baht
($349 million) of the total debt. "Some creditors have
agreed to accept only 60% of the loan and the deals are
finalised while the others will take 40% repayment and the
remaining debt will be paid during 2004-2007," TA president
Supachai Chearavanont said.

Promissory notes will be issued for most of the remaining
unsecured debt. Secured lenders have agreed to reschedule
debt worth 48.5 billion baht ($1.2 billion). TA will begin
repaying principal in the second quarter of 2002. The
details are very similar to an outline agreement between
the company and its creditors in October.

Vallobh Vimolvanich, chairman of Telecom Holding (TH), a
subsidiary of TA, said that after the parent company's debt
restructuring was finalised, TH would begin to restructure
its debt.  Mr Vallobh said TH has debt totalling about 20
billion baht. Of this total, about 10 billion baht was
borrowed to invest in the personal communications telephone
(PCT) and the remaining 10 billion baht was for other
projects such as cable TV services, he said.

Veerawat Kanjanadul, TH's chief financial officer, said
that TH had already held discussions with its creditors
individually and would hold talks with all of them soon.
Each single creditor has agreed to restructure debt for
more than 10 years.  Prime Minister Chuan Leekpai has sent
a message of congratulations to the company on the
completion of TA's debt restructuring, saying that the
process had shown foreign investors' confidence in the Thai

Suthep Thaugsuban, the transport and communications
minister, said that the success of the company's debt
restructuring reflected the confidence of foreign creditors
in Thai telecom companies.  He said it would restore a
positive investment environment in Thailand. Moreover, this
would help Thai telecom companies prepare for
liberalisation next year.

TelecomAsia said in a statement that Thailand's economic
crisis had not only boosted deregulation but it had also
created many new opportunities.  In the new competitive
environment, the winners would be those which could manage
cost-effective operations backed by strong financial
support and provide high quality services matching the
needs of the market, TA said.

TA stock rose 3.25 baht to close at 48.25 yesterday. The
trading of TA shares was halted in the afternoon by the
Stock Exchange of Thailand but was later lifted after TA
announced its debt restructuring deal to the market.
(Business Day, Bangkok Post  23-Dec-1999)

THAI-GERMAN PRODUCTS: Files rehab report with SET          
Thai-German Products Plc is currently preparing its
business reorganization plan which is expected to be
completed and presented to a meeting of the creditors of
the Company for consideration in the middle of April 2000,
the company reported to the Stock Exchange of Thailand
(SET) this week.

It is expected that the business reorganization plan of the
Company will be approved by the creditors of the Company
and the Court will issue an order to give consent to the
said business reorganization plan approximately at the end
of the May 2000.  Mr.Praisun Wongsmith, director of Siam
City M.B. Co.Limited and Mr.Veerachai Leelaprachakul,
director of PLV and Associates Company Limited filed the
report on behalf of TGP.

TGP previously had notified the SET that on September 7,
1999 the Central Bankruptcy Court (the Court) issued the
Company an order for business reorganization, with Siam
City M.B. Company Limited and PLV and Associates Company
Limited being co-plan preparers as explained.
Following the approval from the creditors and the Court
order giving consent to the said  business reorganization
plan, the Company told the SET, it will submit its business
reorganization plan to the SET and such plan shall be
deemed the plan approved by the shareholders to resolve the
cause of the delisting of the securities of the Company.  
(Stock Exchange of Thailand  23-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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Copyright 1999.  All rights reserved.  ISSN: 1520-9482.

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