TCRAP_Public/980303.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      

      Tuesday, March 3, 1998, Vol. 1, No. 11

                    Headlines

C H I N A

H O N G   K O N G  

PEREGRINE: Directors May Face Action Over Bonuses
RECOR HOLDINGS: Restructuring Scheme to take effect March 25, 1998

I N D O N E S I A

J A P A N  

DAIDO CONCRETE: Latest Victim of Asian Crisis
DAIDO CONCRETE: Six Month Operating Results
DAIEI, INC.: Losses Anticipated; Downgrade Possible
JAPAN ENERGY: Investment Profits Mask Operating Losses
YAMAICHI FINANCE: Yamaichi Affiliate Files Bankruptcy
YAMAICHI SECURITIES: Former Executives Questioned in Probe
YAMAICHI SECURITIES: Sanwa Bank Boosts Stake to 20.7%

K O R E A

M A L A Y S I A

AMSTEEL CORP: Subsidiary KLSE Listing on Hold

P H I L I P P I N E S

S I N G A P O R E

CAM INTERNATIONAL: Shareholders OK Self-Help Plan
KL PEOPLE-MOVER: Rail Project Runs Low on Finances

T H A I L A N D


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PEREGRINE: Directors May Face Action Over Bonuses
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Directors of the UK arm of Peregrine, the failed Asian investment bank,
could face legal action after awarding bonuses totaling almost 90 percent
of profits, a Hong Kong judge said yesterday. Judge Doreen Le Pichon,
presiding over Peregrine's winding up, said the bonuses had been awarded
at the expense of shareholders and creditors even though senior management
"could not have been oblivious of the looming disaster." Peregrine's
provisional liquidators, "should seriously consider whether misfeasance
proceedings are warranted," she added.  (Financial Times 28-Feb-1998)


RECOR HOLDINGS: Restructuring Scheme to take effect March 25, 1998
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Recor Holdings Limited released the following statement relative to its
proposed restructuring described in the Company's circular dated 6th
February, 1998 containing details of the proposed restructuring of Recor
Holdings Limited and the letter of advice of the independent financial
adviser:

    The Directors are pleased to announce that all the resolutions for the
purpose of giving effect to the Proposals were duly approved at the
Special General Meeting today. The Proposals are, however, still subject
to a number of conditions including, inter alia, the Scheme being approved
by the Creditors in the Court Meeting to be held on 16th March, 1998 and
becoming effective. In accordance with the revised timetable in relation
to the Scheme as announced by the Directors on 19th February, 1998, the
Scheme is expected to become effective and all the conditions precedent of
the Proposals are expected to be satisfied on 24th March, 1998.
Accordingly, under the terms of the Restructuring Agreement, the Directors
expect that the Proposals will be completed on 25th March, 1998.

    A further announcement will be made on the date of Completion
regarding the expected date for resumption of trading in the Shares.

    By Order of the Board
    HON SIU CHUNG, JAMES
    Chairman

    Hong Kong, 26th February, 1998


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DAIDO CONCRETE: Latest Victim of Asian Crisis
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Southeast Asia's financial turmoil has claimed another major Japanese
corporation with the failure over the weekend of Daido Concrete Co.,
Japan's second-largest supplier of concrete construction materials.

Daido officials said Saturday that the company faced a sudden and
insurmountable cash shortage linked directly to Asia's currency crisis.
Its bankers--which include Yasuda Trust & Banking Co., Bank of
Tokyo-Mitsubishi Ltd. And Sakura Bank Ltd.--held the cement maker
responsible for loans they extended to Daido's subsidiaries in Hong Kong
and Indonesia, the officials said.  Daido leaves behind unsettled debts of
19.5 billion yen ($153.2 million).

Daido officials note that business had been steady--if not stellar--until
the Asian crisis struck. For the year until the Asian crisis struck. For
the year ended March 31, 1997, its $2.5 million in parent-level pretax
profit was a slight increase over the previous year, on sales of more than
$150 million for three years running.

Daido is the first Japanese company in 27 years to file directly for
bankruptcy without first seeking court protection from its creditors. In
Japan, insolvent corporation normally try to resurrect at least part of
the failed business. But Daido's downfall was so swift and complete that
it is skipping all that. (Wall Street Journal 2-Mar-1998)


DAIDO CONCRETE: Six Month Operating Results
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Daido Concrete (H.K.) Limited Six Month Operating Results announced on
27/2/98:

                                                                Last
                                               Current          Corresponding
                                               Period           Period
                                               from 1/5/97      from 1/5/96
                                               to 31/10/97      to 31/10/96
                                               (HK$'000)        (HK$'000)
    Turnover/Interest Income                 : 93,070           956,352
    Profit-Continuing Operations
        - Operating Profit/(Loss)            : (44,640)         (28,644)
        - Exceptional Items                  : (4,838)          -
        - Discontinued Operations            : -                -
    Total Operating Profit/(Loss)            : (49,478)         (28,644)
    Share of Profit/(Loss) of
      Associated Companies                   : -                (1,278)
    Profit/(Loss) after Tax & MI             : (46,641)         (28,288)
    % Change over Last Period                : N/A
    EPS/(LPS)-Basic                          : (31.64 cents)    (19.19 cents)
             -Fully diluted                  : NIL              NIL
    Extraordinary (ETD) Gain/(Loss)          : NIL              NIL
    Profit/(Loss) after ETD Items            : (46,641)         (28,288)
    Interim Dividend per Share               : NIL              NIL
    (Specify if with other options)          : NIL              NIL
    B/C Dates for Interim Dividend           : N/A
    Payable Date                             : N/A
    B/C Dates for (-) General Meeting        : N/A
    Other Distribution for Current Period    : N/A
    B/C Dates for Other Distribution         : N/A

    Remark:

    Exceptional Items
                                               1997
                                               HK$'000
    Re-structuring costs                       (4,838)


DAIEI, INC.: Losses Anticipated; Downgrade Possible
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Credit ratings for Kobe-based supermarket operator Daiei, Inc., were
placed under review for possible downgrade by Moody's Investors Service.
Daiei said last week that it would post its first ever current, or pretax,
loss in the year ending Feb. 28.  It will likely report a parent pretax
loss of 25 billion yen for the year.  Oddly, shares in Daiei Inc. (8263
JP) rose 15 yen to 595 in trading Friday.  (Bloomberg L.P. 27-Feb-1998)


JAPAN ENERGY: Investment Profits Mask Operating Losses
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Tokyo-based Japan Energy Corp. is likely to report current, or pretax,
profit of 4.5 billion yen for the year through March -- 2.6 times what it
earned the previous year, the Nihon Keizai newspaper said, without citing
sources.  The profit surge is due to sale of securities in its investment
portfolio and changes in the way it depreciates costs. Without these
accounting changes, the company would report a current loss of 2.4 billion
yen.  Reacting to the favorable report, investors pushed shares in JEC
(5014 JP ) up 7 yen to 175 in trading Friday.  (Bloomberg L.P.
27-Feb-1998)


YAMAICHI FINANCE: Yamaichi Affiliate Files Bankruptcy
-----------------------------------------------------
Yamaichi Finance Co., an affiliate of the failed Yamaichi Securities Co.,
filed for bankruptcy today. Yamaichi Finance will leave debts of 171.26
billion yen ($1.4 billion), a company spokesman said. Yamaichi Finance,
which was involved in lending, leasing and credit card operations, is the
most recent in a string of companies to topple in the wake of Yamaichi
Securities' bankruptcy last November. Yamaichi was Japan's biggest
business failure ever, leaving debts of more than 3 trillion yen ($24
billion) and 8,000 people without work. UC Card Corp., a Japanese credit
card company, will take over Yamaichi Finance's credit card business,
while leasing and venture capital divisions will be transferred to Cargill
Investments Japan Ltd. (AP Online 2-March-1998)



YAMAICHI SECURITIES: Former Executives Questioned in Probe
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On Monday, Tokyo prosecutors began questioning former executives of
Yamaichi Securities, including chairman Tsugio Yukihara, about allegations
that they hid massive losses from regulators and stockholders, Japanese
press reports said.

A spokesman for the prosecutors office refused to comment on an active
case.

Yukihara has already admitted in questioning in Japan's Parliament that he
instructed others to hide the losses in a futile attempt to keep the
company afloat. Yukihara is also suspected of violating the Securities and
Exchange Law by allowing Yamaichi to pay dividends to stockholders when he
knew the company had huge losses.

Much of Yamaichi's debt was incurred through an illegal practice known as
"tobashi," in which accounts that show a loss are transferred from one
client to another to keep them from showing up on financial statements at
book-closing time. (AP Online 2-March-1998)


YAMAICHI SECURITIES: Sanwa Bank Boosts Stake to 20.7%
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Osaka-based Sanwa Bank said Friday that it agreed to acquire 18.6% of the
shares outstanding in the Yamaichi Investment Trust Management Company,
bringing its total state to 20.7%.  This acquisition makes Sanwa YITMC's
largest shareholder, and Sanwa plans to cooperatively market investment
products to the bank's customers.  (Dow Jones and The New York Times
28-Feb-1998)

YITMC was an affiliate of Yamaichi Securities, one of Japan's "big four"
brokerage houses which collapsed in November under debts estimated by some
sources to top 3 trillion yen.  (TCRAP 25-Nov-1997)

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AMSTEEL CORP: Subsidiary KLSE Listing on Hold
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Amsteel Corp Bhd announced last week that it is putting on hold the proposed
listing on the KLSE main board of its 52.39% subsidiary, Silverstone Bhd.  
Amsteel told the KLSE that it had decided to withdraw the listing application
submitted to the Securities Commission (SC) until such time when the SC had
reviewed the new criteria for consideration of initial public offerings.
(The Star Online 28-Feb-1998)


DENKO INDUSTRIAL: Trimate Aborts Hi-Poly Acquisition
----------------------------------------------------
Denko Industrial Corp Bhd told the KLSE Friday that its subsidiary, Trimate
Industries Sdn Bhd, has aborted the proposed acquisition of 70% equity in Hi-
Poly Industries Sdn Bhd in view of the current economic situation.  (The Star
Online 28-Feb-1998)


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CAM INTERNATIONAL: Shareholders OK Self-Help Plan
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Thirty shareholders of CAM International, mostly retirees, yesterday gave
the company the go-ahead for its package of "self-help" measures,
approving all the proposed resolutions in an amicable hour-long annual
general meeting. Among the measures approved was the issue of 180 million
new shares to increase CAM's working capital.

Shareholders also said yes to the appointment of Deloitte & Touche as
group auditors, replacing Ernst & Young.  Other resolutions approved
included the re- election of directors and their directors' fees.

Shareholder Denis Distant, 61, told BusinessTimes: "The AGM was a useful
and good session . . . There was no hostility." Lee Kwong Loong, group
general manager and executive director, told reporters after the AGM that
management's immediate priorities were to clear CAM's FY96 and FY97
results, and to ensure that sufficient working capital is in place before
the company's shares resume trading.  CAM was last traded at 62.5 cents
before it was suspended last April when its former chairman and former
financial officer were charged with forgery and fraud.  Independent
director and audit committee member Hui Choon Hoo said audited FY97
results will likely be finalised by end-March, while CAM is working hard
to have a circular out to shareholders on the share issue by then. No
underwriter has yet been appointed.

Mr Hui said, "If we find good response to our issue of new shares, we are
likely to keep most of our profitable operations." But he said it was
possible that CAM would sell off its profitable subsidiaries like its
Penang and Philippines operations.  Mr Lee declined to reveal details,
saying "different people are talking about different options".  Mr Lee
said CAM had orders in its books which would be good for at least the next
six months, and was receiving new orders from existing customers like
Iomega, Seagate and Tektronix.  "We have not lost any customers . . . and
can still take more orders," he said, adding that the group's production
capacity was about 60 per cent now. To cut costs, the group has trimmed
its workforce by 200 contract workers in Malaysia. For FY96, CAM announced
a $25.4 million loss. It made provisions and write-offs of $10.7 million
for questionable transactions and material irregularities.  (BusinessTimes
Online 28-Feb-1998)


KL PEOPLE-MOVER: Rail Project Runs Low on Finances
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The ambitious plan to build a monorail system to ease the traffic gridlock
in Kuala Lumpur has hit a snag. Work on the monorail track cutting across
the prime and congested Golden Triangle area has come to a halt due to
lack of financing, sources told Business Times Saturday.  And now, the KL
People-Mover Rapid Transit (KLPRT) -- the developer of the 16 km
light-rail system -- is seeking help from the government.

The Star newspaper yesterday quoted Segambut MP Tan Kee Kwong as saying
that the light-rail project had been abandoned because of the economic
slowdown.  He reportedly called on the government to assist KLPRT in
getting financial assistance to resume work.  KLPRT had stopped work
because of financial problems, a source from City Hall was reported as
saying.  KLPRT officials could not be reached for comment.  One of the
major shareholders of the 2.2 billion Malaysian ringgit (S$969 million)
monorail system is tycoon Vincent Tan, head of the Berjaya Group. The
monorail is part of the KL Linear City -- proposed to be the world's
longest building. Work on the building was shelved in September last year
as part of a government move to freeze mega infrastructure projects in
order to ease pressure on the country's current account deficit.  Other
projects put on the backburner were the Northern Region International
Airport in Kedah and the Bakun Dam in Sarawak.

Although work on the PRT was allowed to continue, the developer is
believed to have exhausted its credit line amid an environment of
generally tight credit.  The main portion of the project -- an 8 km
stretch between Jalan Tun Razak and Brickfields -- is due for completion
before the Commonwealth Games in September this year. So far, the
developer has completed more than half the stretch. The remaining 8 km
track of the monorail running parallel to Old Klang Road is due for
completion in 2000.  The KLPRT system will integrate with other rail
systems like STAR, PUTRA, the ERL (the rail system serving the Kuala
Lumpur International Airport in Sepang) as well as the KTM Komuter train
system.  Although the first phase of STAR -- stretching from Ampang to
Jalan Sultan Ismail -- was completed in late 1996, the rate of utilisation
has been low. A STAR spokesman said the number of passengers per day has
risen from 40,000 in 1996 to well over 65,000 but was still below the
target of more than 100,000.  (BusinessTimes Online 28-Feb-1998)


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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 Lexy Mueller, Editors.

Copyright 1998.  All rights reserved.  This
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