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T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Thursday, March 5, 1998, Vol. 1, No. 12

                    Headlines

C H I N A

H O N G   K O N G  

BILLION INTERNATIONAL: Directors Caution Shareholders

I N D O N E S I A

J A P A N
  
DAIICHI MUTUAL FIRE AND MARINE: Receives Y2.5bn Injection
JAPAN AIRLINES: Lays Off 200 Workers
MITSUBISHI MOTORS: Australia Unit Cuts Output
TOSTEM CORP.: Cuts Pretax Profit
YAMAICHI SECURITIES: Loss-Hide Plan OK'd in '91

K O R E A

KOREA ELECTRIC POWER: Shuts Down 52 Power Plants

M A L A Y S I A

SAEAGA AIRLINES: Grounded Due to Operating Costs
SIME BANK BHD: S&P Cuts Ratings Following Losses

P H I L I P P I N E S

NATIONAL POWER CORPORATION: Plan for Break-Up Announced

S I N G A P O R E

T H A I L A N D

ASIA CREDIT PLC: Societe Generale Takes a Majority Stake
CH KARNCHANG: Hurt by Currency Losses
LAND & HOUSES: Hurt by Currency Losses
HEMARAJ LAND & DEVELOPMENT: Hurt by Currency Losses
ITALIAN-THAI DEVELOPMENT: Hurt by Currency Losses
QUALITY HOUSES: Hurt by Currency Losses
TELECOMASIA: Baht Devaluation Hits Telecoms
THAI TELEPHONE: Baht Devaluation Hits Telecoms
UNITED COMMUNICATIONS: Baht Devaluation Hits Telecoms

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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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BILLION INTERNATIONAL: Directors Caution Shareholders
-----------------------------------------------------
The board of directors (the "Directors") of Billion
International Holdings Limited (the "Company") refers to
the teletext announcement by the Company on 2nd March, 1998
(the "Message"), the full text of which was as follows:

    "The board of directors (the "Directors") of Billion
International Holdings Limited (the "Company") have noted
certain press articles and an announcement (the
"Announcement") by Ming Kee Investments Limited ("Ming
Kee"), a company wholly owned by Mr. Chan Ying Ming ("Mr.
Chan") (based on information previously provided to the
Directors and which Mr. Chan has not confirmed otherwise),
a substantial shareholder of the Company, in relation to a
heads of agreement entered into between Ming Kee and an
independent third party (the "Purchaser"), for the sale by
Ming Kee to the Purchaser of 205,941,120 shares of HK$0.05
each in the capital of the Company (the "Sale Shares") to
the Purchaser.

Mr. Chan has notified the Company verbally that the
information contained in the Announcement is accurate. As
mentioned in the announcement of the Company dated 26th
February, 1998 in relation to the financial position of the
Company, the Directors intend to raise further capital by
way of equity issues, but no definite proposals have been
formalized and it may or may not proceed.

The Directors have also noted the increase in trading
volume and the price of the shares in the Company today.
Save for the aforesaid, the Directors wish to state that
there are no negotiations or agreements in relation to
intended acquisitions or realizations.

Shareholders and public investors are advised to exercise
caution in dealing in the shares of the Company. Made by
the order of the Board of the Company, the Directors of
which individually and jointly accept responsibility for
the accuracy of this announcement.

    On behalf of the Board
    Li Chi Hung, Francis
    Vice-Chairman

Hong Kong, 2nd March, 1998"

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J A P A N  
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DAIICHI MUTUAL FIRE AND MARINE: Receives Y2.5bn Injection
---------------------------------------------------------
Daiichi Mutual Fire and Marine Insurance will receive a
capital injection of Y2.5bn ($20m) from Japan's three long-
term credit banks, according to Japanese press reports. The
company will also raise Y4.5bn via subordinated loans. The
non-life insurer had Y1,400bn in assets at the end of March
1997, against a capital base of Y1bn. Higher capitalization
is deemed necessary if the company is to compete once
policy rates are deregulated. Under the plan, Industrial
Bank of Japan and Nippon Credit Bank will each inject Y1bn
and Long-Term Credit Bank will inject Y500m.
(Financial Times 4-Mar-1998)


JAPAN AIRLINES: Lays Off 200 Workers
------------------------------------
Japan Airlines will lay off 200 full-time workers, a
quarter of its 770-member U.S. work force, according to the
Japanese newspaper Nihon Deizai Shimbun. The report said
JAL hopes to outsource more of its U.S. activities and cut
costs by about 2.5 billion yen ($20 million) in the next
six years. The layoffs involve cargo handlers and counter
staff at airports in New York, Los Angeles, San Francisco
and Honolulu.
(Wall Street Journal 4-Mar-1998)


MITSUBISHI MOTORS: Australia Unit Cuts Output
---------------------------------------------
A downturn in Japanese car sales has forced Mitsubishi
Motors Australia to cut production at its Adelaide
manufacturing and assembly plants, the company said . Its
Lonsdale engine plant and its Tonsley Park car assemble
line would both shut for two weeks in April. The Australian
arm of the Japanese car maker said the move had been
planned since November in consultation with industry
unions. The move would allow the company to soak up some of
its excess production capacity without the need to make
redundant any of its 5,300 workers, it said.
(Financial Times 4-Mar-1998)


TOSTEM CORP.: Cuts Pretax Profit
--------------------------------
Tostem Corp. (5938 JP ) fell 190 yen to 1,530. The aluminum
housing material maker yesterday cut its pretax profit
forecast 50 percent to 10 billion yen for the full year
ending in March. That's 50 percent less than the most
recent forecast by Toyo Keizai. (Bloomberg Japan Equity
Movers 4-Mar-1998)


YAMAICHI SECURITIES: Loss-Hide Plan OK'd in '91
-----------------------------------------------
The former president of collapsed brokerage Yamaichi
Securities Co. and two other former executives were
arrested Wednesday on suspicion they helped cover up some
260 billion yen ($2 billion) in corporate losses. Arrested
by Tokyo prosecutors were former president Atsuo Miki, 62;
former chairman Tsugio Yukihira, 66, and Ryuji Shirai, a
former vice president. (AP Online 4-Mar-1998)

An agreement to hide massive losses of now-defunct Yamaichi
Securities Co. was reached at a secret meeting at a Tokyo
hotel in 1991, sources close to the brokerage said Monday.
Yamaichi executives who attended the meeting include former
Chairman Tsugio Yukihira and former President Atsuo Miki.
The two have been questioned by Tokyo prosecutors who
suspect the brokerage violated securities trading laws, the
sources said.

The sources said on Nov. 24, 1991, about 10 senior
executives, including those in the planning division and
corporate marketing division, met at a Tokyo hotel and
decided to hide the losses. According to the sources, the
brokerage had accumulated 120 billion yen in losses that
stemmed from the collapse of the asset-inflated economy.    
The brokerage had been investing the assets of its
customers, many of them corporate clients, through
discretionary trading. Yamaichi was able to conceal the
losses through transactions called tobashi, in which the
brokerage transferred losses to other companies' accounts.

However, an amendment to the Securities and Exchanges Law
that was planned for the following year would make it
illegal for brokerages to compensate investment losses of
their clients, the sources said.

At the meeting, Yukihira, then the brokerage's president,
told the other executives that Yamaichi must swallow the
120 billion yen in losses, the sources said. To do so,
Yukihira proposed establishing a paper company that would
take over these losses.

The sources said everyone at the meeting agreed with the
plan because the losses of 120 billion yen would seriously
hurt the reputation of the company's management. Some
executives predicted that improvements in the market would
eventually make up for the losses, the sources said.

The brokerage set up five companies to hide the losses, the
sources said. Yamaichi decided to close down in November
with unrecorded losses that reached 264.8 billion yen.  
(Asahi NewsPaper 03-Mar-1998)


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K O R E A
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KOREA ELECTRIC POWER: Shuts Down 52 Power Plants
------------------------------------------------
The Korea Electric Power Corp.(KEPCO) said Tuesday it has
suspended the operation of 52 power plants across the
country, including thermal and nuclear power plants, has
been halted, cutting total power output to 32 million
kilowatts, well below the country's 41.3-million-kilowatt
capacity.

The reductions in the sale of electricity across the
country in January, which was cut by 300 million kilowatts
hour or 2.1 percent percent of total output of 159 million
kilowatts hour were one of the reasons cited by KEPCO for
closing down these power plants.
(Asia Pulse 4-Mar-1998)


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M A L A Y S I A
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SAEAGA AIRLINES: Grounded Due to Operating Costs
------------------------------------------------
Saeaga Airlines, a wholly-owned subsidiary of listed Ekran
Bhd controlled by tycoon Ting Pek Khiing, has suspended its
operations due to high operating costs. Saeaga director
William Lau told BT on Monday that the company had also
deferred its earlier plan to buy a fleet of jets. But he
said there was no plan to sell the company as Saeaga
planned to resume its service when the economic crisis is
over.

Saeaga, which has three aircraft, previously serviced towns
in Sarawak like Kuching, Sibu, Bintulu, Layang-Layang and
Mulu. It had big plans to be a regional airline with
flights to Kuala Lumpur, Langkawi, Kota Kinabalu, Labuan,
Perth and Darwin.

It had planned to buy 15 new aircraft in the next two
years. However, the cost has ballooned to more than RM2.2
billion (S$974.4 million) compared to earlier estimates of
RM1.5 billion due to the sharp depreciation of the ringgit.

Parent company Ekran's future is also clouded by the
indefinite deferment of the RM15.5 billion Bakun
hydroelectric dam in Sarawak.
(Singapore Business Times Online 4-Mar-1998)


SIME BANK BHD: S&P Cuts Ratings Following Losses
------------------------------------------------
Standard and Poor's on Wednesday lowered the public
information rating of Malaysia's Sime Bank Bhd. one day
after the bank reported a massive loss in the six months to
December. The rating was lowered to 'CCCpi' from 'Bpi,' the
New York-based credit assessor said in a statement received
here. Bank Negara Malaysia, the central bank, announced
Tuesday that Sime Bank, the country's sixth largest bank,
recorded a pre-tax loss of 1.57 billion ringgit (430
million US dollars) in the six months to December.

Standard and Poor's said the bank needed a capital infusion
of at least 1.2 billion ringgit to meet the minimum eight-
percent risk weighted capital adequacy ratio. The ratings
agency said Sime Bank's equity-to-assets ratio was only 1.3
percent, "grossly inadequate in the current stressed
environment of slowing economic growth and rising non-
performing loans."

Standard and Poor's has recently sounded warnings of
deteriorating economic conditions in Malaysia, including
the depreciation of the ringgit and the battered stock
market, taking their toll on the banking sector's asset
quality. (Agence France-Presse 4-Mar-1998)

Rashid Hussain Bhd (RHB) is proposing to merge its
banking arm, RHB Bank Bhd, with Sime Bank Bhd. At the same
time, it disclosed that it was temporarily ceasing merger
negotiations with Commerce Asset-Holding Bhd (CAHB)
following an impasse.

RHB's announcement also put an end to widespread
speculation earlier that Australia and New Zealand Banking
Group (ANZ) would be acquiring a substantial stake in Sime
Bank.
(The Star Online 4-Mar-1998)


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P H I L I P P I N E S
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NATIONAL POWER CORPORATION: Plan for Break-Up Announced
-------------------------------------------------------
Private sector electricity utilities will be able to bid
for concessions to operate about 80 percent of the
Philippines electricity generating capacity under plans
announced yesterday by the state-owned National Power
Corporation. Guido Delgado, chief executive, proposes to
unbundle National Power's generating arm into seven
separate concessions with a combined annual turnover of
about $1.5bn.
(Financial Times 4-Mar-1998)

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S I N G A P O R E
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T H A I L A N D
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ASIA CREDIT PLC: Societe Generale Takes a Majority Stake
--------------------------------------------------------
French bank Societe Generale will take a majority stake in
ailing Thai finance firm Asia Credit plc as the battered
sector desperately seeks foreign partners, reports said
Wednesday. Societe Generale will boost its shareholding to
51 percent from the current level of 18.5 percent thorough
the purchase of 315.1 million shares from a new issue.

Asia Credit said it would next month raise its registered
capital by six billion baht (139.5 million dollars) to 6.92
billion by issuing 600 million new shares at 10 baht a
piece, the Nation daily said. The current largest
shareholder, Bangkok Bank plc, will buy 254.3 million
shares boosting its stake to 38.9 percent from eight
percent. The remaining 30.6 million shares will be offered
to existing shareholders.

The move followed an agreement last year by Societe
Generale and Bangkok Bank to inject capital into Asia
Credit as all but two of Thailand's suspended and
technically bankrupt finance firms were permanently shut
down.

The sector is desperately seeking foreign partners to help
recapitalise flagging institutions staggering under the
weight of the economic crisis, the plunging value of the
baht and massive bad debts. Asia Credit on Tuesday reported
a net loss of 5.23 billion baht (120 million dollars) for
1997 compared to a net profit of 849.96 million baht a year
earlier.  (Agence France-Presse 4-Mar-1998)


CH KARNCHANG: Hurt by Currency Losses
-------------------------------------
Thailand's leading developers and construction companies
yesterday reported uniformly bad year-end results as a
result of their efforts to absorb foreign currency losses
and, in some cases, to clean up the balance sheet. Ch
Karnchang, a big infrastructurs group, reported losses of
Bt363m last year after making Bt484m in 1996. Without
foreign exchange losses of Bt821m it would have made a
profit of Bt457m, the group said. Developers with empty or
half-built residential properties face crumbling property
prices amid big oversupply.  (Financial Times 4-Mar-1998)


LAND & HOUSES: Hurt by Currency Losses
--------------------------------------
Thailand's leading developers and construction companies
yesterday reported uniformly bad year-end results as a
result of their efforts to absorb foreign currency losses
and, in some cases, to clean up the balance sheet. Land &
Houses, the country's biggest home builder, incurred a net
loss of Bt6.53bn ($150 million) in 1997, compared with a
profit of Bt1.76bn the year before.

The company recently admitted that it was likely to lose
Bt4bn in 1997 following the baht's tumble after a 13-year
link to the dollar was broken last July. The loss was at
least four times greater than many analysts had expected.
Developers with empty or half-built residential properties
face crumbling property prices amid big oversupply.
(Financial Times 4-Mar-1998)


HEMARAJ LAND & DEVELOPMENT: Hurt by Currency Losses
---------------------------------------------------
Thailand's leading developers and construction companies
yesterday reported uniformly bad year-end results as a
result of their efforts to absorb foreign currency losses
and, in some cases, to clean up the balance sheet.
Prominent home builder Hemaraj Land & Deveopment reported a
net loss of Bt1.02bn. Analysts had expected, on average, a
profit of about Bt25m. Last year the company reported
earnings of Bt6.246m. Developers with empty or half-built
residential properties face crumbling property prices amid
big oversupply.  (Financial Times 4-Mar-1998)


ITALIAN-THAI DEVELOPMENT: Hurt by Currency Losses
-------------------------------------------------
Thailand's leading developers and construction companies
yesterday reported uniformly bad year-end results as a
result of their efforts to absorb foreign currency losses
and, in some cases, to clean up the balance sheet. Italian-
Thai Development, the biggest builder of infrastructure,
reported a net loss of Bt4.85bn for last year, compared
with a profit of Br1.52bn in 1996. The result was worse
than the Bt636.5m that had been expected. Developers with
empty or half-built residential properties face crumbling
property prices amid big oversupply.  (Financial Times 4-Mar-1998)


QUALITY HOUSES: Hurt by Currency Losses
---------------------------------------
Thailand's leading developers and construction companies
yesterday reported uniformly bad year-end results as a
result of their efforts to absorb foreign currency losses
and, in some cases, to clean up the balance sheet. Quality
Houses made a loss of Bt3.03bn for 1997, compared with a
profit of Bt334.73m in 1996. Analysts' average expectations
were of a modest loss of Bt73m. Developers with empty or
half-built residential properties face crumbling property
prices amid big oversupply.  (Financial Times 4-Mar-1998)


TELECOMASIA: Baht Devaluation Hits Telecoms
-------------------------------------------
Thai telecommunications companies, some of the largest
borrowers of foreign capital in the country, reported heavy
losses yesterday as the baht's devaluation took its toll on
balance sheets. TelecomAsia, a fixed-line operator, saw
losses deepen from Bt1.92bn to Bt26.6bn in 1997. Foreign
exchange losses were Bt22.9bn on dollar debt of $973.2m. A
change in stock exchange regulations required companies to
record all foreign exchange losses this year, rather than
amortize them over a five-year period as previously
allowed.

TelecomAsia said the company and its subsidiaries were
hedging operations, negotiating extension of debt repayment
schedules, cutting costs and investments and increasing
income and efficiency.  (Financial Times 4-Mar-1998)


THAI TELEPHONE: Baht Devaluation Hits Telecoms
----------------------------------------------
Thai telecommunications companies, some of the largest
borrowers of foreign capital in the country, reported heavy
losses yesterday as the baht's devaluation took its toll on
balance sheets. Thai Telephone, a fixed-line operator,
reported a loss in 1997 of Bt12.3bn, due to a foreign
exchange loss of Bt8bn. A change in stock exchange
regulations required companies to record all foreign
exchange losses this year, rather than amortize them over a
five-year period as previously allowed.  (Financial Times
4-Mar-1998)


UNITED COMMUNICATIONS: Baht Devaluation Hits Telecoms
-----------------------------------------------------
Thai telecommunications companies, some of the largest
borrowers of foreign capital in the country, reported heavy
losses yesterday as the baht's devaluation took its toll on
balance sheets. United Communications (Ucom) revealed
losses of Bt17.7bn ($406) in 1997, compared with a profit
of Bt2.4bn in 1996. Foreign exchange losses were Bt22bn. A
change in stock exchange regulations required companies to
record all foreign exchange losses this year, rather than
amortize them over a five-year period as previously
allowed.

The company said it continued to hedge all short-term debt
and would keep long-term debt unhedged. The recent
strengthening of the baht had prompted it to wait before
making a decision on hedging operations on medium-term
debt. Ucom is in a difficult position, with many costs in
foreign currencies and revenue in baht.
(Financial Times 4-Mar-1998)



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