/raid1/www/Hosts/bankrupt/TCRAP_Public/980323.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, March 23, 1998, Vol. 1, No. 24

                    Headlines


C H I N A   &   H O N G   K O N G  

JARDINE FLEMING: Profit Plunged 83% in 1997
LEADING SPIRIT: Loses $384m in Red-Chip Trade
PEREGRINE INVESTMENTS: Investigation of Price Waterhouse
SAN MIGUEL BREWERY: Shareholders Angry on 98% Profit Drop

I N D O N E S I A

J A P A N  

LONG-TERM CREDIT BANK: Moody's Downgrade
YAKULT HONSHA: Incurs Loss on Derivatives Trading

K O R E A

HALLA GROUP: Government Comments on Group's Fate
HANBO STEEL: Government Comments on Group's Fate
HYUNDAI ELECTRONICS: Major Restructuring Imminent
KIA MOTORS: Announces Details of Second Stage Survival Plan
SAMSUNG ELECTRONICS: Reports 1997 Net Earnings Down
SSANGYONG INVESTMENT: Will Convert Itself to JV

M A L A Y S I A

P H I L I P P I N E S

C&P HOMES: Share Swap with Ayala Land

S I N G A P O R E

T H A I L A N D

BANGKOK BANK: Share Offer to Raise Capital


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

JARDINE FLEMING: Profit Plunged 83% in 1997
-------------------------------------------
Jardine Fleming Holdings, the merchant banking arm of the
Jardines group, yesterday said profit after tax plunged
82.9 per cent last year as it was rocked by the turmoil in
Asian financial markets. The company, an equal joint
venture between Jardine Matheson and Robert Fleming of
London, said it made US$14 million during the year, against
$82 million in 1996.

The poor performance helped drag down earnings at two core
Jardine companies, Jardine Matheson and Jardine Strategic.
Jardine Matheson's net profit excluding exceptionals
slipped 21 per cent to $292 million, and Jardine
Strategic's recurring net profit fell 19 per cent to $257
million. The group's net assets dropped to $469 million at
the end of the year from $481 million in 1996.
(South China Morning Post 20-Mar-1998)


LEADING SPIRIT: Loses $384m in Red-Chip Trade                  
---------------------------------------------
Consumer appliance maker Leading Spirit (Holdings) lost
$384 million trading red chips last year, according to an
internal report prepared for bankers owed more than $1.2
billion by the firm. Leading Spirit's losses follow a flood
of High Court writs against its chairman Wong Shi-ling for
unpaid stock margin loans that are thought to have topped
$900 million.

The firm's subsidiary, Good Time Investments, bought red
chips worth $594 million last year but after the October
market crash was forced to liquidate most of its holdings
incurring a loss of $473 million, according to a report
compiled by its financial advisers Somerley Ltd. The report
indicates the stocks were sold from January 1 to 23 and a
total provision of $384 million was incurred for the
financial year to December 31 once other trading profits
were accounted for.

Mr Wong was a central figure in the recent collapse of
finance firm CA Pacific and liquidity crisis at Cheerful
Holdings after failing to repay margin loans collateralised
by Leading Spirit shares which collapsed in value before
being suspended at the company's request.

Leading Spirit owes 33 creditors $1.26 billion, with the
single largest exposure of $271.25 million to Bankers
Trust. Excluding letter of credit facilities, other
creditors include Standard Chartered Bank with $52.98
million; Sumitomo Bank, $66.73 million; Hongkong Chinese
Bank, $61.95 million; Hongkong Bank, $40.98 million and
Nanyang Commercial Bank, $39.01 million.

Having bought many red chips near their summer highs the
firm was battered in the crash with a $280.5 million loss
from a $342.01 million investment in K Wah International
Holdings, according to the report. As of January 23 the
firm held shares in Union Bank, Sichuan Expressway, Chu
Kong Shipping and Yugang International worth at yesterday's
close $36.96 million.

Mr Wong is thought to have pledged his entire shareholding
in Leading Spirit as collateral for personal account margin
trading. That fell from 66 per cent to 48 per cent by
January as brokers dumped the stock triggering a covenant
in the syndicated loan agreement calling for the company to
repay loans should Mr Wong's stake fall below 51 per cent.

Leading Spirit shares fell from a high of $1.72 to 6.5
cents before being suspended on January 15. If the
suspension was lifted bankers fear margin brokers owed
money by Mr Wong may dump Leading Spirit stock. Without the
chairman at the helm the worry is debtors would stop paying
and suppliers refuse to do business creating a solvency
crisis. At least one renowned market maker is understood to
have accumulated a 20 per cent stake in the company and
made an offer to Mr Wong to buy out the holdings of margin
brokers holding the majority of his stock.

In addition to outstanding writs exceeding $500 million
from firms that extended Mr Wong margin finance, he is
thought to owe the Bank of China $200 million.
(South China Morning Post 13-Mar-1998)


PEREGRINE INVESTMENTS: Investigation of Price Waterhouse
--------------------------------------------------------
The Hong Kong Society of Accountants has instigated an
investigation into the way Price Waterhouse handled the
liquidation of Peregrine Investment Holdings, saying the
matter had now become one of public concern. The self-
regulating body has the right to hand out fines of up to
$500,000 and permanently bar members if it finds them
guilty of a disciplinary offence.

Earlier this month, Price Waterhouse was reprimanded by a
judge who singled out the company's failure to disclose a
conflict of interest during the liquidation of Peregrine.

The Price Waterhouse liquidation operation at Peregrine is
headed by joint provisional liquidator David Hague.

Three members have already been appointed to the
investigation committee, although they have yet to confirm
their ability to sit on it. The body has the statutory
power under the professional accountants ordinance to
require a response to questions it asks and to get access
to records and documents relating to the matter.

If the Hong Kong Society of Accountants investigation
committee decides there is a case to answer, it will be
referred to a disciplinary committee which will call a
hearing at which the member under scrutiny can have legal
counsel.

Price Waterhouse yesterday announced that orders for the
winding up of three Peregrine companies had been made in
the High Court. It said Peregrine Investments Holdings,
Peregrine Derivatives and Peregrine Fixed Income were
therefore now in liquidation.  (South China Morning Post
20-Mar-1998)


SAN MIGUEL BREWERY: Shareholders Angry on 98% Profit Drop
---------------------------------------------------------
About 100 shareholders yesterday attacked directors of San
Miguel Brewery for last year's poor performance, which saw
attributable profit fall 98 per cent to $3.9 million from
$184 million in 1996. At its annual general meeting, mostly
elderly minority shareholders bombarded the board with
questions about the management, demanding a reduction in
the number of directors.

"The annual salaries of the directors amount to tens of
millions, but the company only made [a profit of] about $1
million last year," one shareholder said.

There will be no final dividend and directors' fees will be
forgone. Earnings per share were one cent, against 49 cents
in 1996.

The firm even cut costs for this year's AGM, apologising
for lower standards of refreshments and gifts compared with
previous meetings.

He said the dwindling number of tourists in Hong Kong had
contributed to a drop in sales during the past two months.
The company had no plans to increase beer prices. Mr
Soriano blamed the beer tax for putting a heavy burden on
San Miguel, saying imported beers had increased
competition. He said the company was embarking on a series
of cutbacks on promotions and salaries. Staff numbers would
be reduced through retirement. (South China Morning Post
20-Mar-1998)


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




=========
J A P A N  
=========


LONG-TERM CREDIT BANK: Moody's Downgrade
----------------------------------------
Moody's Investors Service on Friday downgraded its
credit rating for Long-Term Credit Bank of Japan Ltd. and
warned it may do the same to Industrial Bank of Japan Ltd.
The New York-based credit risk assessor said Long-Term
Credit Bank's long-term deposit and senior debt ratings
were dropped to "Baa2" from "Baa1" and its short term
deposit rating to "Prime-3" from "Prime-2."

The financial strength rating of Long-Term Credit Bank
(LTCB) was dropped to "E" from "E-plus" and the ratings
outlook was negative due to uncertainty about its plans to
raise extra capital, Moody's said in a statement.

LTCB had received a capital injection under a government
financial stability scheme which improved reserve coverage
for its declared non-performing loans, Moody's said. But
"LTCB remains exposed to large asset quality risk from its
commercial real estate-related portfolio, including its
significant exposure to non-bank affiliates."

The decision reflected "the deteriorating domestic credit
outlook as well as evidence of increasing credit
sensitivity and widening credit spreads in the long-term
debenture market."  (Agence France-Presse 20-Mar-1998)


YAKULT HONSHA: Incurs Loss on Derivatives Trading
-------------------------------------------------
Yakult Honsha Co., a beverage maker, said it incurred a
loss of as much as 100 billion yen ($769 million) on
derivatives trading, making it the latest Japanese company
to disclose a major financial surprise to shareholders this
week.

Yakult wouldn't reveal the precise amount of the loss, but
said it was incurred due to the steep drop in currencies of
Southeast Asian nations over the last year. The company's
chairman and a vice president will resign to take
responsibility for the loss. Yakult said it expects to
report a 96 billion yen loss for the year to March 31 and
will reduce its workforce by 300 during the year to cut
costs.  (Financial Times 20-Mar-1998)

Yakult Honsha Co. (2267 JP ) wasn't traded as sell orders
exceeded buy orders, with the latest sell offer at 720 yen.
It was closed at 820 yen yesterday. The Japanese maker of
fermented milk drinks said it will take a charge of 105.7
billion yen ($813 million) for the year ending March 31 on
securities and trading loses, including derivatives.
(Bloomberg Japan Equity Movers 20-Mar-1998)


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

HALLA GROUP: Government Comments on Group's Fate
------------------------------------------------
President Kim Dae-jung on Thursday directed the Ministry of
Commerce, Industry and Energy to conclude the handling of
these insolvent conglomerates as soon as possible and the
ministry has said they will deal with it in a "package."

MOCIE Minister Park Tae-young said in his report the delay
in dealing with the problems of these companies is leading
to more complications and that a solution package will be
drawn up as soon as possible.

As for Halla, the court on Thursday issued an order for the
process of placing the Halla Engineering and Heavy
Industries group under court receivership, possibly
expediting its normalization as well.

Once the company is received by the court, most of its
debts will be frozen, leaving it with improved
conditions for attracting foreign investment and selling
off portions of the group to raise cash.

As it is, negotiations are underway to attract additional
foreign capital in such subsidiaries as Halla Pulp and
Paper and Halla Climate Control from Bowater and Ford of
the United States.

At the same time, Halla Engineering and Heavy Industries is
looking to sell off major portions of its assets, including
the heavy industries division, while negotiating for the
injection of foreign capital.

The projected court receivership has a major implication
for Halla _ for while the shipbuilder is out of Halla's
hands now, a number of Halla subsidiaries, including Mando
Machinery, have provided cross repayment guarantees.

"The receivership of Halla Engineering and Heavy Industries
means that its debts will be put off with only low interest
and Halla's major subsidiaries will have a freer hand at
normalization," one Halla official said.  (Korea Times
20-Mar-1998)


HANBO STEEL: Government Comments on Group's Fate
------------------------------------------------
President Kim Dae-jung on Thursday directed the Ministry of
Commerce, Industry and Energy to conclude the handling of
these insolvent conglomerates as soon as possible and the
ministry has said they will deal with it in a "package."

MOCIE Minister Park Tae-young said in his report the delay
in dealing with the problems of these companies is leading
to more complications and that a solution package will be
drawn up as soon as possible.

The problem is thus at Hanbo, the steelmaker which went
bankrupt in January last year with total debts of an
estimated 8 trillion won and there is little chance the
company will ever be able to pay them off.

Under a recent proposal, Hanbo said it will repay 2.8
trillion won, or 35.5 percent of the debt, over a 20-year
period and asked the court and its creditors to write off
the some remaining 5 trillion won.

"Right now, the government is evaluating the possibility of
selling off parts of Hanbo's assets at Tangjin Steel Works,
including the Corex plants, but the efficiency of the
company as a whole is in doubt," one ministry official
said.  (Korea Times 20-Mar-1998)


HYUNDAI ELECTRONICS: Major Restructuring Imminent
-------------------------------------------------
Hyundai Electronics Co. will be extensively rearranging
their businesses, excluding those related to semi-
conductors and telecommunications.

According to the industries March 19, Hyundai will carry
out measures of either rearranging or dividing the
businesses that are relatively dependent on exports and
have little profitability such as those of the PC,
satellite broadcasting Settop Box, copy machines, cameras
and the multimedia plaza, and will soon full-scale measures
will be taken.

Hyundai is planning on announcing such restructuring plans
in the late terms of this month. They are currently in the
process of receiving applications for honorary retirement
in each business department.

An official of Hyundai said, "We have set the standards of
withdrawing or dividing the sectors other than the D-RAM,
telecommunications and information systems and the display
businesses." He added that they are in the process of
restructuring mainly in the departments of the media
business, commercial business and information device. The
official said, "We are planning on reducing 1/3 of the
employees in the business department and will be receiving
honorary retirement applications."

"After the restructuring, those that have resigned will
reach up to 1,000 employees," the official added. (Korea
Times 20-Mar-1998)


KIA MOTORS: Announces Details of Second Stage Survival Plan           
-----------------------------------------------------------
South Korea's insolvent Kia Motors on Friday released
details of its "second-stage survival plan" including a cut
in annual auto output and a relocation of its production
facilities. Release of the details, including a production
cut from 700,000 to 600,000 units annually, followed a
warning by President Kim Dae-Jung on Thursday that the
problem of troubled conglomerates could not be allowed to
drag on.

The president singled out Kia, Halla and Hanbo
conglomerates as troublemakers sucking up scarce bank loans
and causing social troubles. It was his strongest comment
yet on the fate of the three insolvent conglomerates.

Included in the second stage financial plan are relocation
of the auto production facilities to the firm's complex in
the Asan Bay area to bring all the company's operations
under the same roof. The company, under its restructuring
plan has already cut down the number of its directors from
73 to 38 and replaced half of them with outside directors,
and trimmed its departments from 199 to 139. (Agence France-
Presse 20-Mar-1998)


SAMSUNG ELECTRONICS: Reports 1997 Net Earnings Down
---------------------------------------------------
Samsung Electronics, South Korea's biggest electronics
company, reported that 1997 net earnings fell 25 percent to
Won123.5bn ($83m) owing to losses on foreign debt as the
Korean currency fell 50 percent against the US dollar.

Samsung was vulnerable to rising interest costs as,
according to the Korean stock exchange, it had the largest
debt of any listed Korean company last year, at
Won17,240bn.

Earnings were hurt by continued weak process for memory
chips, of which Samsung is the world's biggest producer,
because of a global glut.  (Financial Times 20-Mar-1998)


SSANGYONG INVESTMENT: Will Convert Itself to JV
-----------------------------------------------
Ssangyong Investment &  Securities, South Korea's fifth
largest brokerage house, is working to convert itself into
a joint-venture company through mergers and acquisitions
(M&A) with a foreign concern. Ssangyong Group, an ailing
conglomerate that put up most of its key affiliates for
sale to stay afloat, is trying to draw foreign equity
investment to turn its securities unit into a joint-venture
company, a high-profile group source said Friday.

The parent group will be turning over the forfeited shares  
in Ssangyong Investment's stock that occurred in a recent  
capital increase to foreign buyers in order to materialize
the M&A. Ssangyong Investment will hold a shareholders'
meeting on April 9 to scrap the provision that limits
foreigners' subscription to 30 percent of paid-in capital
while doubling the ceiling for allocating convertible bonds
and bonds of warrant in its incorporation articles.

Ssangyong, however, declined to name the foreign partner,  
but sources close to the situation say the candidate is a  
manufacturer and not a financial institution. The foreign
partner will also likely buy the Ssangyong Investment's
headquarters building in Yoido that has been put on the
selling block, the sources said.

Daeyu Securities turned into a joint-venture company last  
month by selling the stakes of its largest shareholders but  
Ssangyong will be first among securities affiliates of
large conglomerates to share management with a foreign
concern if the M&A is realized.

Meanwhile, Kim Seok-dong, president of Ssangyong  
Investment, flatly denied as groundless that his company is  
seeking a foreign partner.  (Asia Pulse 20-Mar-1998)



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



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

C&P HOMES: Share Swap with Ayala Land
-------------------------------------
Ayala Land, the Philippines' leading property group, will
acquire a 38.4 percent stake in C&P Homes, the country's
largest homebuilder, through a share swap valued at about
3.6bn pesos ($92m). Each company has more than 3,000 ha
nationwide. Ayala Land will exchange 208m new shares at
17.24 pesos each for 1.6bn C&P Homes shares at 2.25 pesos
each held by Fine Properties, the holding company of the
Villar Group. Once the acquisition is complete, Ayala Land
will have three of the seven seats on the board of C&P
Homes.  (Financial Times 20-Mar-1998)

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



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


BANGKOK BANK: Share Offer to Raise Capital
------------------------------------------
Bangkok Bank, Thailand's largest commercial bank, yesterday
said it would initiate an capital raising programme by
selling 400m new shares to international investors. The
bank's registered capital will increase by Bt4bn to Bt14bn
($341m). Bangkok Bank has chosen to follow its main
competitor, Thai Farmers Bank, in trying to raise new
capital directly through the international markets rather
than via a rights issue or a private placement with a
minority partner.  (Financial Times 20-Mar-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 Lexy Mueller, Editors.

Copyright 1998.  All rights reserved.  This material is
copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-
mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.  Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $875 per month
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For
subscription information, contact Christopher Beard at
301/951-6400.

      * * * End of Transmission * * *