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                A S I A   P A C I F I C      

         Monday, March 2, 1998, Vol. 1, No. 10

                       Headlines

C H I N A

H O N G   K O N G  

JOYCE BOUTIQUE: Details Concerning Rights Issue
LAI SUN: Company Profile
LAI SUN: Financial Overview
PEREGRINE INVESTMENTS: Jardine Fleming Buying Six Funds

I N D O N E S I A

J A P A N  

MITSUBISHI MOTORS: Considers Thai Plant Closure
SEIYU CO. LTD.: Expects Loss Due to Debt-ridden Finance Unit

K O R E A

CORYO SECURITIES CO.: Narrowly Escapes Bankruptcy
DONGSUH SECURITIES CO.: Narrowly Escapes Bankruptcy
KOREA FIRST BANK: Fails to Meet Capital Requirements
SEOULBANK: Fails to Meet Capital Requirements

M A L A Y S I A

ARAB-MALAYSIAN: Placed on CreditWatch
SNP CORPORATION LTD.: Set to Consolidate Printing Business
UNION PAPER HOLDINGS BHD: Reports Significant Operating Loss
WEMBLEY INDUSTRIES HOLDINGS BHD: Sell Off 3 Subsidiaries

P H I L I P P I N E S

CEBU PACIFIC: Cuts Costs While Awaiting Lifting of Order
GRAND INTERNATIONAL AIRWAYS: Lays Off Workers
MIDAS DIVERSIFIED EXPORT: Relief Granted from Creditors
NORTH NEGROS MARKETING: Motion Denied for Dissolution

S I N G A P O R E

T H A I L A N D

BANK OF AYUDHYA PCL: Announces Plans to Raise Capital
THAI FARMERS BANK PCL: Announces Plans to Raise Capital


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C H I N A
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H O N G   K O N G  
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GUANGDONG KELON: Financial Overview
-----------------------------------
Guangdong Kelon Electrical Holdings Co., Ltd.
Amounts stated are in thousands of RMB for the year ending on each
date indicated.  Zeros generally indicate financial data is not
available.

                     31-Dec-1997   31-Dec-1996   31-Dec-1995
                     -----------   -----------   -----------
Total Revenues         3,409,828     2,760,817             0
Operating Income         662,103       480,156             0
Net Income               560,798       439,800             0

Current Assets                 0             0             0
Current Liabilities            0             0             0
Working Capital                0             0             0

Total Assets                   0             0             0
Total Liabilities              0             0             0
Shareholder Equity             0             0             0


JOYCE BOUTIQUE: Details Concerning Rights Issue
-----------------------------------------------

As reported yesterday, there was rampant speculation that
Joyce Boutique Holdings Limited, amid operating losses, would
seek to reorganize its debt obligations.  Based on those rumors,
the SEHK halted trading in JBHL's shares.  Trading resumed
yesterday after JBHL announced the details of a Proposed Rights
Issue and Increase in Authorised Share Capital.

Joyce Boutique aims to raise HK$78 million before expenses by
issuing 312,000,000 new Shares by way of rights at a price of
HK$0.25 per Rights Share. As at the date of this announcement,
the Company has an authorised share capital of HK$40,000,000
divided into 400,000,000 Shares, of which 312,000,000 Shares
have been issued and are fully paid.  Joyce Boutique will
provisionally allot one Rights Share for every existing Share
held by Qualifying Shareholders.  The Rights Issue is not
available to Excluded Shareholders.

Part of the proceeds from the Rights Issue will be used to reduce
HK$75 million of bank borrowings of the Group.  The balance of the
proceeds will provide  additional  working  capital  for the
Group.  The Directors believe  that  the  enlarged  capital base
will improve the capital structure of the Group and the Rights
Issue is in the best interests of the Company and the
Shareholders.

The Rights Issue is conditional.  In particular, it is subject to
the Underwriter, Standard Chartered Asia Limited, not terminating
the Underwriting Agreement, for example:

     (1) because of a force majeure, defined to include a
         peg of the Hong Kong currency to the United States'
         currency; or

     (2) failure to obtain the consent from the Bermuda
         Monetary Authority for the issue of the Rights
         Shares.

Joyce Boutique is expected to send a circular, containing details
of the  Rights  Issue and a notice convening the SGM to consider,
inter alia, the Rights Issue and the increase in authorised share
capital to the Shareholders on or about 12th March, 1998 and is
also expected to send the Prospectus, provisional allotment
letters and forms of application  for  excess Rights Shares to all
Qualifying Shareholders on or about 30th March, 1998.

The last day for acceptance of provisional allotments is expected
to be 15th April, 1998.

Joyce Boutique cautions investors that any buying or selling of
the Shares from now up to  the  date  on which all such conditions
are fulfilled (which is expected to be 20th  April, 1998, and any
buying or selling of nil-paid Rights  Shares between 1st April and
8th April, 1998 (both days  inclusive)), is at investors' own
risk.  Investors may want to obtain professional advice regarding
dealing in Shares or nil-paid Rights Shares during these periods.


LAI SUN: Company Profile
------------------------
Lai Sun Development Co., Ltd.                
11th Floor, Lai Sun Commercial Centre        
680 Cheung Sha Road                          
Kowloon, HONG KONG                           
Telephone: 852-2741-0391       Fax: 852-2785-2775       

Business: Investment holding company engaged in property    
          development for sale and rental, including hotels
          and restaurants.                                  
          Founded 1947; Employs 0 workers.


LAI SUN: Financial Overview
---------------------------
Lai Sun Development Co., Ltd.                
Amounts stated are in thousands of HK$ for the year ending on each
date indicated.  Zeros generally indicate financial data is not
available.

                     31-Jul-1997   31-Jul-1996   31-Jul-1995
                     -----------   -----------   -----------
Total Revenues                 0     2,186,843     2,499,082
Operating Income               0       776,174       892,342
Net Income                     0       766,403       728,115

Current Assets                 0             0             0
Current Liabilities            0             0             0
Working Capital                0             0             0

Total Assets                   0             0             0
Total Liabilities              0             0             0
Shareholder Equity             0             0             0


PEREGRINE INVESTMENTS: Jardine Fleming Buying Six Funds
-------------------------------------------------------
Jardine Fleming Investment Management Ltd. has agreed to purchase
a large part of the fund-management business of failed Peregrine
Investments Holdings Ltd.  Jardine Fleming, one of Hong Kong's
largest fund-management groups, said it has agreed to purchase
from Peregrine Asset Management (Hong Kong) Ltd. the management of
its Asia Bond and Currency Fund, as well as five smaller funds.  
The funds taken over by Jardone Fleming had total assets of about
US$149 million as of December 31, 1997, according to a memorandum
on the Peregrine unit prepared by Peregrine officials.  Peregrine
Asset Management managed a total of about US$462 million in more
than 20 different funds at the end of 1997, according to the
memorandum.  (The Asian Wall Street Journal 23-Feb-1998)


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I N D O N E S I A
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J A P A N  
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LONG-TERM CREDIT BANK: Denies Rumors
------------------------------------
Shares of Long-Term Credit Bank of Japan Ltd. (8303 JP ) rose 7
yen to 342. The bank denied that it's closing its U.S. operations.
On Wednesday, the bank fired Dennis Pettit, manager of foreign
exchange, and seven proprietary currency traders from its New York
office. (Bloomberg Japan Equity Movers 27-Feb-1998)


MITSUBISHI MOTORS: Considers Thai Plant Closure
-----------------------------------------------
Mitsubishi Motors (MMC), one of Japan's leading carmakers, is
considering closing a plant in Thailand in an attempt to stem
losses resulting from the slump in the Thai market. MMC said that
the closure of MMC Sittipol, a joint venture with a local
manufacturer of pick-up trucks, was one of the options under
consideration.

MMC has been hit by the downturn in Thailand, where the company
ahs been forced to halt three of four production lines. The only
line still running produces pick-up trucks for export. As a
result, overall capacity utilisation at MMC's Thai plants has
plunged to about 30 percent.

The troubled Thai market is one of the main reasons for MMC's
dismal outlook. In addition to a plunge in sales, MMC faces a loss
of Y34bn resulting from the higher cost of servicing unhedged
dollar-denominated debts of about $500m at MMC Sittipol.
(Financial Times 27-Feb-1998)


SEIYU CO. LTD.: Expects Loss Due to Debt-ridden Finance Unit
------------------------------------------------------------
Japan's major chain store operator Seiyu Co. Ltd. said Friday it
expected to post its first losses in the year to February, hit
by a debt-ridden finance subsidiary. Seiyu said it would be its
first net loss since the company was established in 1963. The
retail giant forecast a parent-level net loss of 20 billion yen
(157 million dollars) for the year, reversing an earlier estimate
of 4.2 billion yen in profit.

The company would abandon all claims on its financing unit, Tokyo
City Finance, resulting in an extraordinary loss of 80 billion
yen, it said. Seiyu had extended financial aids totaling 80
billion yen to Tokyo City Finance to assist the unit's
restructuring. A further loss of about 34 billion yen would come
from capital losses on shares held in four listed associates,
along with a six-billion-yen loss related to closing eight retail
outlets, it said.

Seiyu slashed its parent pre-tax profit forecast to 5.5 billion
yen from 7.5 billion yen expected earlier, with sales seen at 998
billion yen, up from 993 billion yen estimated previously. The
company said it would revise consolidated earnings forecasts
before it reported final results. Seiyu also announced plans to
improve its business such as the closure of 40 more retail outlets
in the next three years to target a parent-level pre-tax profit of
20 billion yen in the year to February 2001.

Seiyi's managing director Ryuichi Takagi said his company would
proceed with "intensified restructuring efforts to a retail
business-oriented structure." The firm would "push forward with
the liquidation of non-retail assets," Takagi said. "Store sales
are expected to fall in the year to February 1999, as the number
of store closures outpaces the number of openings." Takagi said,
however, the company's retail sales were expected to start
recovering from the year to February 2000, as the company planned
to "accelerate new store openings from that period."
(Agence France-Presse 27-Feb-1998)


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K O R E A
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CORYO SECURITIES CO.: Narrowly Escapes Bankruptcy
-------------------------------------------------
The Coryo Securities Co. has escaped bankruptcy after the
Securities Supervisory Board (SSB) extended a business suspension
period for the troubled brokerage house until the end of next
month.

The SSB decided to give Coryo, whose business suspension
expires Saturday, an extra month for the brokerage house to
devise a settlement with its 23 creditor banks to save the
company, by converting debt into investment. "Coryo is striving to
normalise business, and we agreed to extend the business
suspension period to prevent a bankruptcy," an SSB official said.
Coryo must submit a restructuring program approved by creditor
banks and a plan to repay its loan from the investors protection
fund to the SSB by March 25.

According to measures to normalise business submitted to
SSB, Coryo plans to slash capital to 30 billion won from the
current 164.5 billion won (US$99.5 million) and to convert
230.4 billion of its debts into equity investment. It also
promised to pay back 25 percent of 104.4 billion won borrowed from
the securities investors protection fund by June, 25 percent by
December, and the remaining 50 percent by the end of next year.
Coryo also pledged to sell real estate worth 92.6 billion won and
to merge outlets at home and abroad. (Asia Pulse 27-Feb-1998)


DONGSUH SECURITIES CO.: Narrowly Escapes Bankruptcy
---------------------------------------------------
The Dongsuh Securities Co. had escaped bankruptcy after the
Securities Supervisory Board (SSB) extended a business suspension
period for the troubled brokerage house until the end of next
month.

The SSB has prolonged the business pause for Dongsuh until the end
of March, and ordered a restructuring plan to be submitted by
March 25 if a takeover materialised. (Asia Pulse 27-Feb-1998)


KOREA FIRST BANK: Fails to Meet Capital Requirements
----------------------------------------------------
Korea First Bank is one of fourteen South Korean banks that have
failed to meet capital adequacy standards required by the Bank for
International Settlements (BIS), raising the prospect of further
tightening of corporate lending and resulting bankruptcies. Korea
First has recently been nationalised and will be sold later this
year after a government fund assumes their bad debts. Korea First
has a capital adequacy ratio of -2.7 percent.
(Financial Times 27-Feb-1998)


SEOULBANK: Fails to Meet Capital Requirements
---------------------------------------------
SeoulBank is one of fourteen South Korean banks that have failed
to meet capital adequacy standards required by the Bank for
International Settlements (BIS), raising the prospect of further
tightening of corporate lending and resulting bankruptcies.
SeoulBank has recently been nationalised and will be sold later
this year after a government fund assumes their bad debts.
SeoulBank has a capital adequacy ratio of 0.97 percent.
(Financial Times 27-Feb-1998)


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M A L A Y S I A
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ARAB-MALAYSIAN: Placed on CreditWatch
-------------------------------------
S&P placed the long-term counterparty rating on Arab-Malaysian
Merchant Bank on CreditWatch with negative implications because of
the rapid rise in its NPLs on a three-month arrear basis to 7.02
percent in December 1997 from its earlier 1.58 percent, also on a
three-month arrears basis, in March 1997.

It said the high exposure of AMMB to the broad property
sector, which represented 34.2 percent of total loans, and its
high 21 percent exposure to the share financing sector, were
key rating sensitivities, given the current volatile market
environment.

"The rapid growth in AMMB's balance sheet, particularly
during the previous two years ending March 31, 1996 and March
31, 1997, when asset growth averaged 50 percent, gives rise to
concerns about the embedded asset quality that is expected to
continue to deteriorate as the difficult economic growth
conditions continue.

"Offsetting the rapid growth concern is the likely flat or
even slightly negative growth in AMMB's balance sheet for
1997. The dependency of AMMB on the interbank market for funding
exposes the bank's funding profile to greater volatility,
particularly in times of stress," S&P said. It added that it
expected AMMB's profitability for fiscal 1998 to be substantially
below its initial expectations when the ratings were assigned in
1997, due to the high NPLs and associated loan loss provisioning.

AMMB's loan loss expenses increased from 51.5 million for
the year ending March 1997 to RM70.8 million for the nine
months to December 1997. (Asia Pulse 27-Feb-1998)


SNP CORPORATION LTD.: Set to Consolidate Printing Business
----------------------------------------------------------
The Directors of the SNP Corporation Ltd have announced some
measures to consolidate the group's printing business.
In this connection, directors refer to the executive
chairman's statement in SNP's 1996 Annual Report in which he
informed shareholders that SNP had engaged external consultants to
review strategically the group's current businesses. Pending the
outcome of the review, the group would continue to downsize, cease
or transfer overseas any operation that was no longer viable in
Singapore.

After careful consideration, the directors have decided vacate
SNP's premises at 303 Upper Serangoon Road. SNP Printing Pte Ltd
will cease production after it has merged part of its capacity
with SNP Security Printing Pte Ltd at Ubi Avenue and transferred
equipment to SNP Offset (M) Sdn Bhd in Shah Alam, Malaysia.

The downsized SNP Printing Pte Ltd will move to Ubi Avenue
and SNP Corporation Ltd will move to Great World City.
(Asia Pulse 27-Feb-1998)


UNION PAPER HOLDINGS BHD: Reports Significant Operating Loss
------------------------------------------------------------
Union Paper Holdings Bhd, a tissue paper manufacturer, announced
it expected its pre-tax operating loss to be cut significantly for
the 1997-1998 financial year on the back of an expected 30 percent
increase in turnover. UPH deputy chairman and chief executive
officer Abdul Aziz Hussain said the company had achieved a pre-tax
operating loss of RM8.045 million (US$1=RM3.62) on a turnover of
RM15.16 million for its financial year ended Aug 31, 1997.
The company had a pre-tax operating loss of RM7.028 million
on the sales of RM16.16 million in 1996.

Union Paper hopes to raise exports to 50 percent of total
production against 25 percent the previous year. On whether the
company would turn around this current year, he said it would
depend on the company's cost provision levels this year.

The company also hopes that raw material prices would be
stabilised this year as the import of pulp accounted for 20 to
25 percent of the total production cost of tissue papers. UPH
operates two facilities -- one at Bayan Lepas,in the northern
Penang state and the other at Bentong, in the east coast Pahang
state. (Asia Pulse 27-Feb-1998)


WEMBLEY INDUSTRIES HOLDINGS BHD: Sell Off 3 Subsidiaries
--------------------------------------------------------
Wembley Industries Holdings Bhd and Wembley Engineering Holdings
Bhd have announced the disposal of three group engineering
subsidiaries for RM1.7mil cash. Wembley Industries said in a
statement that the companies being sold were Sun Metal Works Sdn
Bhd, Wembley Process Sdn Bhd and Wembley Fluid Engineering Sdn
Bhd.

Both Wembley Industries and Wembley Engineering have entered into
a sale agreement with Tabir Permai Sdn Bhd (TPSB) and its
subsidiary Great Structure Sdn Bhd on the disposals. However, the
consideration was subject to change depending on the outcome of an
audit of the engineering companies' accounts for the financial
year ended Dec 31, 1997.

Wembley Process manufactures cryogenic tanks/vaporisers and gas
processing equipment; Wembley Fluid is involved in trading,
contracting and project management in relation to water
engineering facilities; Sun Metal is involved in general
engineering and the supply of plant and equipment.

The disposals would not have any effect on the Wembley group's
paid-up capital and net tangible assets but would result in an
extraordinary loss of RM860,000 for its current year. (The Star
Online 27-Feb-1998)


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P H I L I P P I N E S
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CEBU PACIFIC: Cuts Costs While Awaiting Lifting of Order
--------------------------------------------------------
Cebu Pacific Air will implement cost-cutting measures in the next
few days even as the Air Transportation Office (ATO) indicated it
is not ready to lift its order of grounding the remaining eight
aircraft of the airline.

In an interview with Businessworld, Cebu Pacific senior vice
president and general manager Diego Garrido, Jr. said "We have
told the ATO from day one that there is no legal basis to order
the grounding of our fleet. But we cooperated with whatever their
decision was on the understanding the issue would be resolved at a
reasonable time," he said. He said the company has been hurting
because the company has maintained its more than 600 personnel on
the payroll despite the stoppage of its operations. It enlisted
the help of 40% of its personnel in the search and rescue
operations and the rest to help in counseling the families of the
victims.

The airline has to bear revenue losses of at least 180 million
Philippine pesos (PhP) monthly unless the order is lifted. As a
coping mechanism, the company will ask its employees to use their
remaining vacation and sick leaves. Another measure would be to
reduce the working schedules. As a last resort, the airline will
ask some of its personnel to take furloughs or leave without pay.
The airline is allowed to put its employees on furlough for two
years. (BusinessWorld 27-Feb-1998)


GRAND INTERNATIONAL AIRWAYS: Lays Off Workers
---------------------------------------------
The catering arm of Grand International Airways, Inc. (Grand Air)
has laid-off some of its regular personnel due to the closure of
local operations by one of its major clients, United Airlines
(United Air). Early this month, Grand Air Caterers, Inc. filed a
notice of retrenchment at the Metro Manila office of the
Department of Labor and Employment for the lay-off of 12 regular
employees due to a redundancy in its operations. The retrenchment
is said to take effect this March.

A BusinessWorld source said the retrenchment resulted from
significant losses incurred by Grand Air Caterers when United
Airlines decided to close its Philippine operations this year.
Last month, United Air announced it was closing down its Manila-
Seoul passenger route beginning February 20 due to consistent
losses amounting to about US$8 million per year. (BusinessWorld
27-Feb-1998)


MIDAS DIVERSIFIED EXPORT: Relief Granted from Creditors
-------------------------------------------------------
The Securities and Exchange Commission (SEC) has granted cash-
strapped Midas Diversified Export Corp. and its subsidiaries 30-
day relief from their creditors. "With the filing of the instant
petition for suspension of payments, all actions for claims
against the petitioners pending or still to be filed before any
court, tribunal, office, board, body and/or commission are deemed
suspended immediately and to last for a period of 30 days unless
shortened or extended through an order from the (SEC) hearing
panel," the commission said in its order. The order also "enjoined
the firm from disposing of their property in any manner
whatsoever, except in the ordinary course of their business and
making any payments outside of the legitimate expenses of their
business during the pendency of the proceedings."

In a petition filed just last week, the company and its
subsidiaries asked the SEC to allow them to declare a moratorium
on their debt payments. Midas' subsidiaries include Manila Home
Textile, Inc., O&D Manufacturing, Inc., FL Industrial Corp., and
Louisville Realty & Development Corp. The firm sought SEC's
intervention concerning its debt payments as it found difficulty
in paying off loan obligations totalling 3.05 billion Philippine
pesos (PhP). Among its creditors, Metropolitan Bank & Trust Co.
has the biggest exposure to Midas with its loans amounting to
PhP688.87 million. (BusinessWorld 27-Feb-1998)


NORTH NEGROS MARKETING: Motion Denied for Dissolution
-----------------------------------------------------
The Securities and Exchange Commission (SEC) has denied North
Negros Marketing Co., Inc.'s (Nonemarco) motion for
reconsideration regarding the commission's decision to dismiss the
latter's petition for dissolution. The SEC said it is not within
its jurisdiction to dissolve the company as the firm failed to
comply with certain requirements under the law to enable the SEC
to proceed with its request.

Nonemarco is the marketing arm of sugar refiner Victorias Milling
Corp. It was among the first to seek protection from creditors
last year. In its first review, the SEC denied the firm's petition
for suspension of payments. In response, Nonemarco filed a new
motion seeking to convert its petition However, the hearing panel
which reviewed the case could not find grounds to proceed with the
firm's dissolution. (BusinessWorld 27-Feb-1998)


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T H A I L A N D
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BANK OF AYUDHYA PCL: Announces Plans to Raise Capital
-----------------------------------------------------
Tank of Ayudhya PCL announced plans to raise capital by issuing a
rights issue, public offering and private placement. The bank said
it would issue 1.5 billion new shares. It also said it won't pay a
dividend for the second half of 1997, in order to set provision
against bad loans. Bank of Ayudhya shares fell 1.50 baht to 27
baht Thursday. (Wall Street Journal 27-Feb-1998)


THAI FARMERS BANK PCL: Announces Plans to Raise Capital
-------------------------------------------------------
Thai Farmers Bank PCL said it will issue shares to unidentified
"Strategic partners" in an offering led by Goldman, Sachs & Co.
The bank will issue 376 million shares in a private placement at a
price to be set later, the bank announced. "We are in the process
of an agreement with some strategic partners," said bank Executive
Vice President Tida Samalapa. She said the bank hoped to know the
number of groups buying shares by next week. She wouldn't say
whether the buyers are banks, but she did say the lead manager of
the offering is Goldman Sachs. No shares will be offered to
existing shareholders, she said , though the bank implied that
holders of warrants wouldn't see their rights diluted.

Analysts believe the amount won't keep the bank going for long
before it returns for more. Previously, Thai Farmers Bank told
analysts it hoped to raise between 100 billion baht and 125
billion baht this year, and the same amount next year, to cover
nonperforming loans, or those on which payments haven't been made
for at leas5 six months. (Wall Street Journal 27-Feb-1998)


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Princeton, NJ
USA, and Beard Group, Inc., Washington, DC USA.  Debra Brennan and
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Copyright 1998.  All rights reserved.  This material is
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