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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 19, 1998, Vol. 1, No. 22
                    Headlines


C H I N A   &   H O N G   K O N G

APPLIED INTERNATIONAL: Half-Year Results Announced
INTERFORM CERAMICS: Hires Financial Advisor & Auditor
INTERFORM CERAMICS: To Propose Creditor Agreement
RJP ELECTRONICS: Half-Year Results Announced
RECOR HOLDINGS: Creditors Accept Restructuring Scheme
TUNG FONG: Selling Assets to Raise Cash to Pay Debts

I N D O N E S I A

BOURAQ AIRLINES: Cuts in Work Force, Aircraft

J A P A N  

ASAHI TEC: Thai JVs to Become Subsidiaries
HITACHI: Will Scale Back Chip Production
JAPAN AIRLINES: Uses Shareholder Equity for Write-Offs
MITSUI REAL: Shares Tumble on News of Huge Losses
MITSUBISHI MOTORS: Financial Woes Put Dent in Profits
YAMAICHI SECURITIES: Official Questioned on Losses

K O R E A

SAMSUNG ELECTRONICS: Moves on Early Retirements

M A L A Y S I A

SIME DARBY: Travel Agency Selling Interest in Westminster

P H I L I P P I N E S

ISLA COMMUNICATIONS: Deutsche Telekom to Increase Stake

S I N G A P O R E

T H A I L A N D

MONTERY ASIA: Trading Halted until Finances Disclosed
THAI FARMERS: Opening Doors to Foreign Investors


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C H I N A   &   H O N G   K O N G
=================================

APPLIED INTERNATIONAL: Half-Year Results Announced
--------------------------------------------------
Applied International Holdings Limited announced a net loss
of HK$12.5 million on turnover of HK$71.2 million for the
half-year period from July 1 to December 31, 1997.  In the
corresponding period a year prior, RJP posted net profits
of HK$15 million on turnover of HK$199.7 million.
(SEHK 18-Mar-1998)


INTERFORM CERAMICS: Hires Financial Advisor & Auditor
-----------------------------------------------------
Interform Ceramics Technologies Limited announced yesterday
that its Board has appointed Standard Chartered Asia
Limited and Amsteel Corporate Finance (H.K.) Limited as
joint financial advisers to the Group.

The Board has also retained Coopers & Lybrand, Certified
Public Accountants, to conduct an independent review of
the Group's current financial position for presentation to
the Board and the Group's creditors including the holder of
its convertible note. It is expected that a preliminary
report by Coopers & Lybrand will be available on or before
3 April 1998.  (SEHK 18-Mar-1998)


INTERFORM CERAMICS: To Propose Creditor Agreement
-------------------------------------------------
Interform Ceramics Technologies Limited disclosed yesterday
that it will be asking its creditors to enter into a
Standstill Agreement in respect of outstanding bank loans
and other borrowings of approximately HK$782 million.

Interform said that while its Board believes that the
business of the Group is still sound, the Group is now
faced with cashflow problems.  As at 16 March 1998, the
Group has outstanding indebtedness of approximately HK$782
million. Certain lenders to the Group have demanded the
repayment of credit facilities of approximately HK$107
million extended to the Group. At present, the Group is
having difficulties in meeting all such demands immediately
from its current cashflow.

On 12 March 1998, the Group received a writ from one of its
lending banks claiming for approximately HK$ 5.5 million
together with accrued interest in respect of indebtedness
of the Group. As such, steps have been taken by the Company
to negotiate with its lending banks to reschedule the due
date and amount of repayment.  At present, no standstill
agreement has been reached with creditors.

Interform further disclosed that Great Chance Holdings
Limited, a company wholly-owned by Mr. Ngan Man Po, who is
the Company's chairman, and its associates are interested
in 438,972,304 shares of the Company, representing
approximately 46.96% of the Company's total issued share
capital. The Board has been informed by Great Chance that
out of all the shares it held, 433,177,249 representing
approximately 46.34% of the Company's total issued share
capital have been pledged with independent financial
institutions.

It is an event of default under a loan facility of US$28
million granted to a wholly-owned subsidiary of the
Company, which has been drawn down in full, if the
aggregate shareholding of Mr. Ngan and his associates in
the Company falls below 35%. An independent investor, who
is not connected with any of the directors, chief executive
or substantial shareholders of the Company or any  of its
subsidiaries or their respective associates, of a
convertible note of US$3 million issued by the Company is
also entitled to redeem in full the total outstanding
principal amount plus interest accrued if the aggregate
shareholding of Mr. Ngan and his associates in the Company
falls below 35%. However, Interform said, Great Chance has
confirmed that none of the shares pledged have been sold as
of today.

Interform reiterated that the Group's creditors are still
considering the standstill agreement and if the standstill
agreement cannot be reached, the cashflow position of the
Group will be affected.  (SEHK 18-Mar-1998)


RJP ELECTRONICS: Half-Year Results Announced
--------------------------------------------
RJP Electronics Limited announced a net loss of HK$27.5
million on turnover of HK$52.4 million for the half-year
period from July 1 to December 31, 1997.  In the
corresponding period a year prior, RJP posted net profits
of HK$400 thousand on turnover of HK$115 million.
(SEHK 18-Mar-1998)


RECOR HOLDINGS: Creditors Accept Restructuring Scheme
-----------------------------------------------------
Recor Holdings Limited announced that its Restructuring
Scheme was duly approved by the Creditors at a Court
Meeting yesterday. In accordance with the current
timetable, Recor expects that the Scheme will become
effective and all the conditions precedent of the Proposals
will be satisfied on 24th March, 1998.  Accordingly, under
the terms of the Restructuring Agreement, the Directors
expect that the Proposals will be completed on 24th March,
1998.

Recor indicated that application has been made to the Stock
Exchange for the resumption of trading in the Shares on the
Stock Exchange. Subject to completion of the Proposals, it
is expected that trading in the Shares will resume on the
Stock Exchange at 10:00 a.m. on Wednesday, 25th March,
1998.  (SEHK 18-Mar-1998)


TUNG FONG: Selling Assets to Raise Cash to Pay Debts
----------------------------------------------------
Tung Fong Hung (Holdings) Limited and Tung Fong Hung
Properties (Holdings) Limited announced yesterday that
their respective boards of directors of have been
approached today by Mr. Louis Lo Siu Fai, a former
substantial shareholder of Tung Fong Hung, in relation to
the sale of its entire 27.81% shareholding in TFH
Properties.  

The Companies' boards further announced that they are
negotiating the sale of certain non-property assets related
to the sale and trading of petroleum products from TFH
Properties to Tung Fong Hung to enable THF Properties to
generate cash for repayment of its borrowings.  The net
book value of the non-property assets amounts to
approximately HK$15 million and will be a connected
transaction, if materialised, under SEHK Listing Rules.  
Negotiations as regards such sale of shareholding in TFH
Properties and asset transfers are at preliminary stages
and still in progress.  No legally binding agreement has
been entered into and no financial adviser has been
appointed yet.  Such sales and purchases may or may not
materialise and further announcement will be made.
(SEHK 18-Mar-1998)



=================
I N D O N E S I A
=================

BOURAQ AIRLINES: Cuts in Work Force, Aircraft
---------------------------------------------
Domestic carrier Bouraq Airlines has told 300 out of its
700 employees to stay at home following a cut in the number
of operational aircraft from nine to seven forced by the
economic crisis, President Director Danny Sumendap said.

According to Danny, the 300 employees placed at home will
continue to be paid 50 per cent of their salary and will
have priority for re-employment when the economy has
recovered.
     
Bouraq has also been forced to cut several routes because
70 to 80 per cent of its operational costs are in US
dollars, while revenues are in rupiah.

Danny pointed out that the economic crisis had severely
affected the airlines by causing a fall in the number of
passengers.

Since February 1998 the number of passengers has sharply
dropped, while the average monthly operational cost of one
Boeing 737-200 aircraft is about $US100,000.

In January the airlines load factor fell from 68 per cent
to 53 per cent. Because the company debts are in US
dollars, it has had to take austerity measures.

If the present economic situation has not shown an
improvement by mid-April, the airline will have to place
more employees at home, Danny said.
(Asia Pulse 18-Mar-1998)

The Chairman of the Indonesian National Air Carrier's
Association (INACA), Soelarto Hadisoemarto, has proposed to
the Private Overseas Debt Team (ULNS) that it provide the
association with funds totalling $US500 million to
safeguard airlines from bankruptcy.

Accompanied by the board of directors from five airlines,
namely PT Sempati Air, PT Bouraq, PT Mandala, PT Merpati
Nusantara Airlines and PT Garuda Indonesia, he submitted
the proposal to pay aircraft leasing costs.

"The outstanding and due leasing costs of aircraft is
estimated at $US500 million, so that the government must
provide funds to prevent the lessor from withdrawing the
aircraft", he said. The airlines depend for their fate on
the ULNS team because the assistance from the government
can help continue the operation of airlines.

Soelarto said rerouting of the five airlines would be
discussed this week. He said stopping operations was the
final option if the government fails to reach an agreement
with the lessor of the aircraft temporarily postpone the
debt.  (Asia Pulse 18-Mar-1998)


=========
J A P A N  
=========

ASAHI TEC: Thai JVs to Become Subsidiaries
------------------------------------------
Asahi Tec Corp. has announced plans to make subsidiaries of
its two Thai joint ventures on Friday. The major maker of
cast autoparts will also withdraw from its U.S. joint
venture on the same day. The moves are part of the firm's
plan to reorganize overseas operations with poor business
performance.

Asahi Tec, an affiliate of NGK Insulators Ltd., will boost
its 49% holding in Asahi Somboon Aluminium Co. to 95% by
buying shares from its Thai partner at that firm's request.
It will do the same for another Thai cast parts venture,
Asahi Somboon Metals Co. Combined foreign-exchange losses
by the two ventures have climbed to 3.17 billion yen due to
Thailand's economic crisis.

Asahi Tec will withdraw from Aluminum Wheel Technology Inc.
due to a cumulative loss of 3.5 billion yen by the U.S.
venture. The red ink stems from slowing demand for aluminum
wheels from the Big Three automakers. The U.S. partner will
take over the venture's operations, and Asahi Tec will post
a 2.1 billion yen extraordinary loss for its current fiscal
term ending in May, company sources said. (Asia Pulse
18-Mar-1998)


HITACHI: Will Scale Back Chip Production
----------------------------------------
Hitachi, Japan's largest integrated electrical machinery
manufacturer, is substantially scaling back production of
semiconductor memory chips in an effort to stem mounting
losses incurred in the sector.

Steven Myers, industry analyst at Jardine Fleming in Tokyo,
said Hitachi's group capital spending, at Y715bn ($5.51bn),
was double its cash flow. As a result, Hitachi has
accumulated net debt of Y650bn in the past two years. This
would become "a substantial constraint on the ability of
management to act," Mr Myers said.  (Financial Times
18-Mar-1998)


JAPAN AIRLINES: Uses Shareholder Equity for Write-Offs
------------------------------------------------------
Japan Airlines is to write off Y154.6bn ($1.2bn) and post a
net loss of Y97bn for this financial year, in an attempt to
return to the black and resume dividends next year.

Akira Kondo, JAL president, said yesterday he taking the
unprecedented step of using shareholder equity to write off
restructuring costs of Y97bn in the compan7's hotel and
resort businesses, as well as about Y57.6bn of accumulated
debts at the parent company.

Using shareholder equity was a serious matter, Mr. Kondo
said , but he added: "If we are to offset these deficits we
have little choice but to use this method.

To clear the debt by using future profits would take a
considerable time and delay resumption of dividends."

Mr. Kondo may have to resign to take responsibility for the
decision, but he is likely to be made company chairman to
replace Susumu Yamaji, who may also be forced to resign for
his role in the airline's difficulties. (TCRAP 18-Mar-1998)

JAL has not made dividends payments for six years, and
incurred a Y9.2bn net loss for the last financial year.

JAL has been restructuring its airline business for the
past six years, and has cut costs, particularly on staff,
but still has a significantly higher cost base than its
international competitors.  (Financial Times 18-Mar-1998)

Nikko Research Center Ltd. analyst Jun Harada said a
thorough restructuring of routes is one of the moves "most
urgently needed at JAL," and he praised Tuesday's
announcement. Despite seven years of restructuring,
analysts said, JAL so far has failed to take an important
step: radical layoffs. "It's a tough move, but JAL has to
sack more people and rehire them on more cost-conscious
contracts," Mr. Harada said. "Short of that," said Mr.
Smith of HSBC James Capel, "JAL will probably accumulate
losses again for another crisis."  (Wall Street Journal
18-Mar-1998)

Japan Airlines Co. (9201 JP) fell 23 yen to 490.
Moody's Investors Service Inc. placed Japan Airlines'
senior unsecured long-term debt rating under review for
possible downgrade, the credit rating company said. That
followed a similar move on Friday by Standard & Poors Corp.
(Bloomberg Japan Equity Movers 18-Mar-1998)


MITSUI REAL: Shares Tumble on News of Huge Losses
-------------------------------------------------
Shares in Mitsui Real Estate Sales Co. (8857 JP) fell
92 Yen to 908 in trading Monday.  The real estate
subsidiary of Mitsui Fudosan Co. reversed its previous
forecast of a profit to a pretax loss of 2.1 billion
Yen for the year ending March 31, 1998.  (Bloomberg,
L.P. 17-Mar-1998)


MITSUBISHI MOTORS: Financial Woes Put Dent in Profits
-----------------------------------------------------
Mitsubishi Motors Corp. said last week that it now expects
to post losses of 110 billion Yen -- rather than 40 billion
Yen as previously forecast -- for the year ending March 31,
1998.  These losses include 39 billion Yen lost in
connection with the free fall devaluation of the Thai baht.  

Additionally, Mitsubishi Motors struggles to distance
itself from scandals in which company executives are
alleged to have made payoffs to corporate racketeers.
(The Asian Wall Street Journal 16-Mar-1998)


YAMAICHI SECURITIES: Official Questioned on Losses
--------------------------------------------------
Prosecutors have questioned a former senior official of the
Ministry of Finance (MOF) over allegations that he may have
instructed the failed Yamaichi Securities Co. to keep its
losses off the books, prosecution sources said. (TCRAP 09-
Mar-1998)

According to the sources, Nobuhiko Matsuno, 59, former head
of the ministry's Securities Bureau, was summoned by the
Tokyo District Public Prosecutors Office several times
since early this month. Prosecutors have learned that
former Yamaichi President Atsuo Miki told his subordinates
that he was instructed by the Securities Bureau in 1991 to
keep the losses off the book.

Because of the sluggish stock market, the off-the-book
losses snowballed to 260 billion yen, which forced the
company to decide last November to liquidate. Speaking as
an unsworn witness at the Diet on Feb. 4, Matsuno,
currently vice president of the Regional Banks Association
of Japan, admitted that former Yamaichi President Atsuo
Miki had sought his advice about these "tobashi" deals in
late 1991. But Matsuno denied claims that he had suggested
Yamaichi could hide the losses from its accounts by
transferring them to overseas firms.  (Mainichi
18-Mar-1998)



=========
K O R E A
=========

SAMSUNG ELECTRONICS: Moves on Early Retirements
-----------------------------------------------
Samsung Electronics Co. (SEC) will implement a sweeping
early retirement targeting some 1,000 employees, the
company said Wednesday. Samsung will receive applications
for the early retirement by the end of this month, and the
scope of the retirement, the largest ever in terms of the
number, is expected to have big influence on other
corporations now planning to implement such voluntary
retirement or layoffs.

All SEC employees are eligible for the retirement plan
calling for payment of 12-month salary in addition to the
regular retirement allowance for employees with employment
period of seven years or more, and payment of six-month
additional salary for employees with less than seven years
of employment.
   
"The early retirement plan is part of work force
restructuring, and is confined to voluntary applications.
The number of retirees will thus be different from the
original projection," a Samsung source said.  (Asia
Pulse 18-Mar-1998)


===============
M A L A Y S I A
===============

SIME DARBY: Travel Agency Selling Interest in Westminster
---------------------------------------------------------
On 24 November 1997, the board of directors of Sime Darby
Hong Kong Limited announced the proposed sale by Sime
Travel Holdings Limited (a wholly-owned subsidiary of the
Company) of its 70% equity interest in Westminster Travel
Limited to Sime Wings Berhad.  Sime Wings is a wholly-owned
subsidiary of Sime Darby Berhad which is also the ultimate
holding company of the Company.

Yesterday, subsequent to the dispatch of a circular on 16
December 1997, SDHKL shareholders approved the Proposed
Transaction and the execution of the proposed agreement for
sale as referred to in the Circular and in the form as
produced to the Shareholders' meeting on 8 January 1998,
subject to the receipt of various regulatory approvals.

As the Proposed Transaction has not received the approval
of the Securities Commission of Malaysia, which is the only
remaining major condition for the Proposed Transaction, the
Agreement has yet been entered into. The ongoing currency
turmoil and the resulting economic uncertainties in the
region have also significantly altered the envisaged
commercial reasons for, and mutual benefits expected to
derive from, restructuring the Company's travel-related
business under the Proposed Transaction.  In the light of
these circumstances, the Board (including the independent
non-executive directors) has been obliged not to proceed
with the Proposed Transaction.  Should discussions for the
Proposed Transaction recommence in the future and if the
Board believes it would be in the interests of the Company
to proceed, Shareholders will again be advised and to
approve the terms of any revised proposal.
(SEHK 18-Mar-1998)

Sime Darby stock will resume trading today, said the Kuala
Lumpur Stock Exchange yesterday. Trading was suspended on
March 4 when the company said its unit, Sime Bank, made an
interim loss of RM1.8 billion (S$761.6 million).
(Singapore BusinessTimes 18-Mar-1998)


=====================
P H I L I P P I N E S
=====================

ISLA COMMUNICATIONS: Deutsche Telekom to Increase Stake
-------------------------------------------------------
Deutsche Telekom AG has  reportedly approached the  Board
of Investments (BoI) over maximizing its stake in Isla
Communications Co., Inc. (Islacom).

The German firm is reportedly negotiating to buy the shares
of another foreign investor, Shinawatra Computer and
Communication Plc of Thailand, to increase its interest in
Islacom to 40% from 10%. The German firm, sources said,
wants to have a "more active role" in Islacom, which is
currently plagued with financial problems.

BoI sources yesterday said Deutsche Telekom approached the
agency last week in its capacity as an investment policy
recommending body to explore available options.

Asia Communications Co., the holding firm of the Delgados
who are also actively involved in shipping, hold 60% in
Islacom. The Thai firm has 30% while Deutsche Telekom has
the remaining 10%.  (BusinessWorld 18-Mar-1998)


=================
S I N G A P O R E
=================



===============
T H A I L A N D
===============

MONTERY ASIA: Trading Halted until Finances Disclosed
-----------------------------------------------------
Montery Asia Co., Ltd., has failed to timely submit its
third quarter financial statement for the period ending
January 31, 1998 to the SET.  In response, the SET has
temporarily suspended the security of MA from March
18, 1998 onwards, until the company submits the required
financial statements.  (SET 18-Mar-1998)


THAI FARMERS: Opening Doors to Foreign Investors
------------------------------------------------
The board of directors meeting of Thai Farmers Bank Public
Company Limited no.2/1998, held on 26 February 1998, has
passed a resolution to increase registered capital of the
company by 376 million shares by way of private
placement and a resolution permitting investments by:

1. Any partnership or company of which 50% of the capital
   belongs to non-Thai nationals;

2. Any partnership or company of which up to 50% of the
   total partners (either limited or unlimited liability)
   or shareholders are non-Thai nationals;

3. Any association, foundation, organization or institution
   of which up to 50% of the members, committee or  
   managers, as the case may be, are non-Thai nationals, or
   which is managed or established for the benefit of any
   non-Thai nationals.

Thai Farmers said that the new amendment is proposed in
order to provide highest benefits to Thai and non-Thai
shareholders. It will strengthen the attractiveness of the
banks shares in secondary market which will provide this
shares offering to be more interesting and receive more
responses from foreign investors and will result in the
banks achievement in strengthening its capital base to
support future operations and expansion.  (SET 18-Mar-1998)



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