/raid1/www/Hosts/bankrupt/TCRAP_Public/980324.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 24, 1998, Vol. 1, No. 25

                    Headlines


C H I N A   &   H O N G   K O N G  

DAH HWA: Says Bank Relationships are Okay
DAIDO CONCRETE: Financial Strain Continues; Status Report
LEADING SPIRIT: Preparing to Negotiate with Creditors
MANSION HOLDINGS: Negotiations with Investors Continue
S. MEGGA: Standstill Agreement Reached with Creditors
YAOHAN HONGKONG: Liquidators in Acquisition Talks

I N D O N E S I A

J A P A N  

DAIEI GROUP: Selling Affiliate to Associates First Capital
LONG-TERM CREDIT BANK: Downgraded to Near-Junk by Moody's
INDUSTRIAL BANK OF JAPAN: Under Review for Downgrade
YAKULT HONSHA: Details on Derivatives Losses

K O R E A

DONGSUH SECURITIES: Takeover Offers from 5 Firms
FIRST MERCHANT: Suspended on Failure to Increase Capital
HALLA ENGINEERING: Court Receivership Bid Approved
HALLA GROUP: $1 Billion Deal with Rothschild Inc.
HANBO STEEL: Probable International Bidding Likely
KIA MOTORS: Hyundai Proposes Takeover Bid
SHINWON GROUP: Sells Stake in Pfizer Korea to Pfizer U.S.

M A L A Y S I A

BANK BUMIPUTRA MALAYSIA: IBCA Lowers Ratings
BANK OF COMMERCE: IBCA Lowers Ratings
MALAYAN BANKING: IBCA Lowers Ratings
KONSORTIUM PERKAPALAN: Gov't Responds to Criticism
PUBLIC BANK: IBCA Lowers Ratings

P H I L I P P I N E S

BRIGHTSTAR TROPICAL: Food Firm Seeks Debt Relief

S I N G A P O R E

T H A I L A N D

ALPHATEC ELECTRONICS: Stock Trading Resumes, But No Plan
STA GROUP: 1997 Results of Operations
TIPCO ASPHALT: Rating Placed on CreditAlert


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

DAH HWA: Says Bank Relationships are Okay
-----------------------------------------
Dah Hwa International (Holdings) Limited, together with its
subsidiaries, making reference to a newspaper article on
19th March, 1998 relating to the credit facilities granted
by its bankers, issued a statement making three
clarifications:

   (1) The Group has recently repaid the loans which were
       due on their maturity dates according to the terms
       and conditions of the relevant loan documents. The
       Group was only required for early redemption of
       trust receipts by one banker. The principal amount
       due and repaid by the Group under such trust
       receipts was only US$60,466.67.

   (2) The amount of loan provided under the banking
       facilities of the Group have not been recently
       reduced. Certain bankers have arranged with the
       Group to change the form of credit financing in
       order to keep up with the current practice of the
       banking industry in Hong Kong. The aggregate amount
       of credit facilities however have not been reduced.

   (3) The Group continues to maintain close relationship
       with its bankers. Taking into account of the Group's
       available banking facilities and internal resources,
       the Group has sufficient working capital for its
       present requirements.

Additionally, Dah Hwa clarified that the Group's current
credit arrangements with its bankers are unrelated to the
legal actions against D. H. International Limited, the
controlling shareholder of the Company. (SEHK 20-Mar-1998)


DAIDO CONCRETE: Financial Strain Continues; Status Report
---------------------------------------------------------
Daido Concrete (H.K.) Limited previously announced that it
is facing a significant cash flow problem.  On February 27,
1998, the Company announced that it recorded a loss of
HK$46.6 million for the six months ended 31st October,
1997.  

The Company further announced on 2nd March, 1998 that the
heads of agreement with Hinsome Limited regarding provision
of interim financing, acquisition of a controlling interest
in the Company and debt restructuring, have been terminated
and the interim facility extended by Hinsome Limited to the
Company will become repayable in April, 1998.  The Company
has commenced discussions with other parties who have
expressed interest in acquiring a shareholding interest in
the Company.

A provisional liquidator for a wholly-owned subsidiary of
the Company was appointed on 18th February, 1998.  The
liquidation may crystallise contingent liabilities on the
rest of the Group in the aggregate amount of approximately
HK$125 million.  In addition, Daido Concrete Company
Limited ("DCCL"), the securities of which are listed on The
Tokyo Stock Exchange, declared voluntary liquidation in
Japan on 28th February, 1998.  DCCL is a holder of 27.13%
of the issued share capital of the Company and had advanced
approximately HK$70 million to the Company.  Apart from the
said shareholding and indebtedness, the Company operates
independently of DCCL and is not relying on DCCL for any
business or financial assistance.  

The Company further announced on 16th March, 1998 that it
has entered into a deed in relation to the sale of its 70%
interest in Daido Steel Works and Engineering Limited to
the minority shareholder who owns the remaining 30%
interest.  The directors of the Company estimates that the
financial effect of such disposal on the Group is a loss of
approximately HK$5 million and the release of the
contingent liabilities of approximately HK$12 million.
(SEHK 20-Mar-1998)


LEADING SPIRIT: Preparing to Negotiate with Creditors
-----------------------------------------------------
Leading Spirit Conrowa Electric Co., Ltd., announced on
20th January, 1998 that it has received demand notices from
its banks for repayment of loans in the total amount of
approximately HK$162 million and such loans have become due
and payable.
                                      
The Company is arranging for a meeting with all its banks
shortly with a view to restructuring repayment of loans and
presenting rescheduling proposals to the banks.  

The Company further announced on 4th February, 1998 that an
independent accountant, Deloitte Touche Tohmatsu, has been
appointed to review its cashflow position.  The preliminary
report of the independent accountant will be considered by
the bank creditors in making their decision as to whether
or not they will support the proposed standstill agreement.
(SEHK 20-Mar-1998)


MANSION HOLDINGS: Negotiations with Investors Continue
------------------------------------------------------
Mansion Holdings Limited disclosed that the Company
continues negotiation with an unnamed syndicate of
investors regarding a Proposal leading to possible
investment into the Company.   The Proposal, the company
said, anticipates a change in the control of the Company
and a restructuring of the existing shareholding of the
Company.  The Proposal is, inter alia, subject to
completion of a due diligence on the Company by the
Investors and the Securities and Futures Commission
granting a waiver to the Investors and parties acting in
concert with them from any obligation to make a general
offer for the shares of the Company.  Mansion hinted that a
definitive term sheet will be executed within days.
(SEHK 20-Mar-1998)


S. MEGGA: Standstill Agreement Reached with Creditors
-----------------------------------------------------
S. Megga International Holdings, Ltd., announced on 23rd
February, 1998 that it reached an informal standstill
arrangement with the unsecured bank lenders on 19th
February, 1998 and a standstill arrangement has been agreed
with the noteholders on 20th February, 1998.  

In addition, Company is in negotiations with potential
interested parties regarding a capitalisation of the
Company.  No formal agreements have yet been entered into
in this respect as negotiation are still ongoing.  

The Company further announced on 27th February, 1998 that
it recorded an audited loss of HK$571.4 million for the
year ended 30th June, 1997. (SEHK 20-Mar-1998)


YAOHAN HONGKONG: Liquidators in Acquisition Talks
-------------------------------------------------
As previously reported, Yaohan Japan Corp. ("YJC"), the
controlling shareholder of Yaohan Hongkong Corp. Limited
(the "Company"), filed an application to court for
corporate restructuring as a result of financial
difficulties.  The Company, in turn, requested suspension
of trading in its shares as it attempted to assess the
effect of YJC's application.  The Company announced on 10th
February, 1998 that the board of directors had resolved to
voluntarily wind up the Company by reason of the Company's
inability to pay its debts.  

The joint and several liquidators announced on 10th March,
1998 that an extraordinary general meeting of shareholders
and a meeting of creditors of the Company were held on 9th
March, 1998.  During those meetings, the provisional
liquidators were nominated and confirmed as joint and
several liquidators of the Company and a committee of
inspection was appointed to assist and supervise the joint
and several liquidators.  

The liquidators report that they have been approached by a
number of parties who have expressed interest in exploring
the possibility of acquiring the Company and the
liquidators have commenced discussions with these parties.
(SEHK 20-Mar-1998)


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



=========
J A P A N  
=========

DAIEI GROUP: Selling Affiliate to Associates First Capital
----------------------------------------------------------
Daiei Group, a leading Japanese chain-store operator, is
selling its non-bank financing affiliate to Associates
First Capital of the U.S. for 80 billion yen ($612.1
million). Daiei said it will close the deal on the sale of
DIC Finance to the unit of Ford Motor by the end of next
month, with proceeds going toward rescuing the interest-
bearing debt of the Japanese group's companies. Daiei
recently announced plans to restructure because of the poor
business outlook.  (TCRAP 27-Feb-1998 and Wall Street
Journal 23-Mar-1998)


LONG-TERM CREDIT BANK: Downgraded to Near-Junk by Moody's
---------------------------------------------------------
More bad news hit the Japan's troubled banking industry
on Friday, as a leading U.S. credit rating agency lowered
its ratings of one and warned of a possible downgrade for
another. Moody's Investors Service Inc. said it had cut its
credit ratings of Long-Term Credit Bank of Japan Ltd.,
including the closely-watched financial strength rating,
which was lowered to E, the lowest grade, from E plus. "The
downgrade reflects Moody's concerns that LTCB's asset
quality problems may continue to pressure its capital
base," the rating agency said in a statement.

The downgrade triggered a steep slide in the LTCB
shares of over 4% to 294 ($2.26) on the TSE, while
IBJ shares dropped 10 yen (8 cents) to close at 1,020
($7.83). Moody's said that despite LTCB receiving a capital
injection under the Japanese government's financial
stabilization program, "the size of the embedded losses
will remain large in relation to its capital and reserves."
Moody's said it views the LTCB's strategic alliance with
Swiss Bank Corp. and the restructuring of its wholesale
operations as a positive development, but it said these
would not offset the erosion of the bank's core banking
franchise amid intensifying competition.  (Reuters
20-Mar-1998)
    

INDUSTRIAL BANK OF JAPAN: Under Review for Downgrade
----------------------------------------------------
More bad news hit the Japan's troubled banking industry on
Friday, as Moody's placed credit ratings of the Industrial
Bank of Japan Ltd. under review for a possible downgrade.
As for IBJ, Moody's said the rating review reflected the
deteriorating domestic credit outlook as well as evidence
of increasing credit sensitivity and widening credit
spreads in the long-term debenture market, which could
expose debenture-issuing banks to further margin pressure.

Moody's said it would also examine IBJ's exposure to
borrowers in troubled East Asian economies and the possible
effects of the slowing domestic economy on the bank's asset
quality.  (Reuters 20-Mar-1998)


YAKULT HONSHA: Details on Derivatives Losses
--------------------------------------------
As a result of heavy losses in the derivatives market,
Yakult Honsha appears unlikely to be brought down by its
bad investments (TCRAP 23-Mar-1998). It has the reserves to
write off the losses this year, and the cash flow to
continue operating and rebuild these reserves. It even
plans to maintain its Y15 dividend. Some restructuring of
the business and change in strategy can be expected. Yakult
said yesterday that it would cut 300 jobs over the next two
year, and reduce executives' salaries.  (Financial Times
21/22-Mar-1998)


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

DONGSUH SECURITIES: Takeover Offers from 5 Firms
------------------------------------------------
Five foreign financial organizations have offered to take
over the debt-ridden brokerage firm Dongsuh Securities,
according to Dongsuh Monday. The Korean brokerage firm has
received a letter of intent regarding the takeover from
five foreign financial firms in three countries so far --
Leucadia International Corp., Saloman Smith Barney,
Wilshire International of the United States, J & A
Securities Ltd. of China and Montana Group of Germany.

Dongsuh is slated to submit its planning on management  
normalization to the Securities Management Commission  
Wednesday, which will include two options designed to get  
itself back on its feet -- the transfer of its managerial  
rights to a foreign firm or joint management of the firm  
following a capital reduction by 20 creditors.

Officials from the U.S. investment firm Leucadia are  
currently implementing its survey of Dongsuh's asset and  
liabilities via an investment advisory firm following their  
visits to the Korean firm twice, in January and this month.
The management of Wilshire International, who visited  
Dongsuh on March 10 to discuss the takeover with Dongsuh  
counterparts, are to convey a memorandum of understanding
to the Korean firm as soon as a vulture capital is formed.

Other overseas financial firms Core Pacific Securities of  
Taiwan, JP Morgan, and Credit Lyonnais are also reportedly
reviewing plans to assume control of the Korean brokerage
firm. Foreign financial firms have intensified their
enquiries on the takeover since March, when the country saw
its foreign exchange crunch improved, Dongsuh said.

Dongsuh is likely to enter negotiations with four foreign  
firms soon on the details of the takeover, indicating the  
firm's effort to get back on the right track. Separately,
the Korean firm held two meetings with 20 creditors,
including Korea Housing & Commercial Bank, Tuesday and
Thursday, to iron out a solution to its financial  
troubles. In the meetings, Dongsuh and its creditors
discussed a capital reduction from the current 287.2
billion won to 50 billion won and rollovers of its debts
via issuance of securities.  (Asia Pulse 23-Mar-1998)


FIRST MERCHANT: Suspended on Failure to Increase Capital
--------------------------------------------------------
The Finance and Economy Ministry suspended First Merchant
Banking Monday till the end of next month after the ailing
bank failed to increase capital through issuance of new
stocks last week.

If First Merchant Banking fails to raise the capital  
adequacy ratio to 4 percent by the end of this month, it  
inevitably will follow the footsteps of 12 other merchant  
banks that already went under last month, ministry
officials said.

Clients of First Merchant will be able to redeem their full  
deposits through the bridge merchant bank Hannarum if it
shuts down next month. First Merchant Banking, one of 15
merchant banks that were ordered to raise capital to 120
billion won (US$102.9 million) by March to improve their
financial state, attempted to beef up capital by issuing
new stocks for two days last week.

But most of its shareholders, including Shinhan Bank, which  
holds the largest stake of 7.28 percent, declined the  
purchase, leaving 99.97 percent of the newly issued stocks  
unclaimed.

The 21-year-old merchant bank has 53,026 minor shareholders  
and foreigners hold a cumulative stake of 21.61 percent.
(Asia Pulse 23-Mar-1998)


HALLA ENGINEERING: Court Receivership Bid Approved
--------------------------------------
South Korea's Halla Group has had an application for court
receivership filed for its shipbuilding unit, Halla
Engineering and Heavy Industries, approved yesterday by a
local court. Last month the group, which filed for
bankruptcy protection in December, said it hoped to raise
capital to save its shipbuilding business from collapse.

The shipbuilding division, the fifth largest shipbuilder in
the world, was at one stage linked with a major Norwegian
engineering concern. However, no further details emerged.
The unlisted shipbuilding company was among the two of the
Halla Group's units that filed applications for court
receivership late last year due to severe debt problems.

A spokesman for the group, which is South Korea's 12th
largest chaebol, said Halla Merchant Marine's bid for court
receivership had already been rejected. Four other Halla
units have been seeking court protection against creditors
which, unlike a court receivership, would allow the
applying companies to retain current managers.
(LLoyd's List International 20-Mar-1998)


HALLA GROUP: $1 Billion Deal with Rothschild Inc.
-------------------------------------------------
Halla Group announced Monday that it will borrow US$1
billion from U.S. financial institution Rothschild Inc. in
a bridge loan.  The bridge loan will be supplied to Halla's
key affiliates to pay off their debts and Rothschild will
organize mergers and acquisitions (M&As) for Halla units to
redeem its loan from future foreign investors, according to
the contract signed between Halla Chairman Chung Mong-won
and Wilbur Ross, president of Rothschild.

The bridge loan comes with maturity of one year and carries  
an interest rate of 12% per annum.  Delegates from
Rothschild and Halla's American law firm associate Piper &
Marbury will arrive in Seoul on Wednesday to iron out the
terms for the short-term credit.

Rothschild is expected to approach GM Delphi and Delcom  
Remy of the United States, Lucas Varity of Britain, and
Valeo of France to realize the M&A for Mando Machinery
while negotiating with a European company and Southeast
Asian shipyard to draw investment into Halla Cement
Manufacturing and Halla Engineering & Heavy Industries,
respectively.

Halla had sold a 50-percent stake in Kamco to its German  
partner Bosche at for $23 million and California-based  
Valentia Hotel to Sunstone Inc. of the U.S. for $16.5
million. The conglomerate also plans to hand over stakes in
Halla Pulp & Paper at $200 million to Bowater of the U.S.
and sell Marco Polo Hotel in Youngam, South Cholla
Province, at $23 million to another American company
Panacom.  Wall Street-based Rothschild has 42 offices in 27
countries and organized 125 M&A cases worth $600 million in
1996.  (Asia Pulse 23-Mar-1998)


HANBO STEEL: Probable International Bidding Likely
--------------------------------------------------
International bidding is likely to become of one potent way
to dispose of troubled Hanbo Steel, business sources said
Monday. Park Tae-joon, president of the United Liberal
Democrats, and founder of Pohang Iron & Steel Co., told
reporters that domestic as well as international biddings
would be considered in liquidating insolvent corporations
including Hanbo Steel and Halla Heavy Industries.

Park met reporters following his regular weekly meeting  
with President Kim Dae-jung over the weekend. The POSCO,
which has been consigned to run Hanbo Steel, already made
it clear that its role in the mangement of Hanbo Steel will
primarily revolve around creating conditions favorable for
a third-party takeover.

Either Hanbo's "B" district or only the corex facility in  
the district would be put on the block. Sales of the corex  
facility, however, will be given top priority, business  
sources said, noting that foreign steel makers showed an
interest in the corex project.

The Commerce, Industry and Energy Ministry also hinted they  
were considering international bidding, especially for the  
corex facility. International bidding or sales through
specialized dealers will be determined pending specialized
assessment of the facilities, a ministry source said.
(Asia Pulse 23-Mar-1998)


KIA MOTORS: Hyundai Proposes Takeover Bid
-----------------------------------------
The Hyundai Motor Co. (HMC) has decided to take over the
bankrupt Kia Motors Corp., an inside Hyundai report
exclusively obtained by Yonhap News Agency has revealed.
Titled "The Direction of the Korean Automobile Industry's  
Development," the report said: "Hyundai is a sole domestic  
carmaker which can normalise Kia and have it equipped with
international competitiveness."

Hyundai's Kia undertaking would be an advantageous choice  
for Korean carmakers to survive in the 2000s, the report
said. If Hyundai embraced Kia's production capacity, its
annual auto output would surpass 2.5 million units,
emerging as one of the world's top 10 carmakers, according
to the report dated March 20.

Regarding the terms and conditions of its planned takeover,  
the report recommended a delay in the payment of principal
for 10 years to 20 years, via consultations with the
government and Kia's creditor banks. Participation in Kia's
capital increase was a proper method for Hyundai's
acquisition, the report said.

A ranking HMC official also said: "Our company's policy to  
undertake Kia is true," disclosing that Hyundai had spent a  
great deal of time studying the matter. In the event the
takeover was realised, the Hyundai Group was reportedly
planning to cut off part of its core business, comparable
to the size of Kia, in an apparant bid to avoid criticism
over the integration of the chaebols' economic power.

The Samsung Motor Co. is expected to be hit hard by the  
surprising Hyundai scheme, as it has been sounding out the
Kia takeover via strategic affiliations with Ford as well.
(Asia Pulse 23-Mar-1998)

Hyundai Group's crack at taking financially troubled Kia
Motors into its fold foreshadows a sweeping reconfiguration
of the Korean car industry. If Hyundai's plan is realized,
the industry's restructuring will eventually mean a big two
system centered on Hyundai Motor and Daewoo Motor. The
annual production capacity of Hyundai and Kia combined
would surpass 2.5 million, and Hyundai will be ranked among
the world's top 10 carmakers.

Hyundai is known to have been carefully planning for the  
acquisition, and has bought Kia shares for the past four to  
five years. Regarding the issue of economic concentration
arising from the addition, Hyundai contends that having a
controlling share solely in the domestic market makes
little sense if it is fully opened up to outsiders
beginning from next year. The largest carmaker claims that
its acquisition would rather enhance the competitiveness of
the local car industry.

Kia's creditors are apparently receptive to Hyundai's bid,  
as it came shortly after President Kim Dae-jung issued a  
directive to take early action to resolve problems
involving insolvent conglomerates, including Kia Group.
(TCRAP 23-Mar-1998)

In a related development, the economic research institute  
run by Cho Hung Bank, the second major creditor of Kia,
issued a report that paints Hyundai's takeover as the most
propitious solution under consideration.

"Even though court receivership is handed down and Kia's  
debt payment is shelved, Kia's business outlook is very  
uncertain," the report said. "To help Kia back on its own
two feet through third-party acquisition is the best way
conceivable for creditors to see their debts repayed," it
said.

Meanwhile, it remains uncertain if the government and  
creditors will accept the conditions set by Hyundai for its  
acquisition bid. How Hyundai will handle such a hurdle
remains to be seen.  (Asia Pulse 23-Mar-1998)


SHINWON GROUP: Sells Stake in Pfizer Korea to Pfizer U.S.
---------------------------------------------------------
South Korea's apparel-making Shinwon Group announced Monday
that it had sold its full stake of 34.09 percent, or
425,488 shares, in Pfizer Pharmaceuticals Korea, held by
its affiliate Shinwon JMC, to leading U.S. pharmaceuticals
producer Pfizer.

Shinwon expects to receive a total of 37.8 billion won  
(US$25.9 million) by selling its stake at 89,000 won per  
share.

Shinwon, just surviving on assistance from its 10 creditor  
banks since last month, is now hustling to sell most of its
properties and subsidiaries to stay afloat. With Shinwon's
stake, Pfizer owns a 44-percent stake in the Korean
affiliate.  (Asia Pulse 23-Mar-1998)



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

BANK BUMIPUTRA MALAYSIA: IBCA Lowers Ratings
--------------------------------------------
The US agency Fitch IBCA on Friday said it had
downgraded its ratings on four Malaysian banks, citing
expectations that economic growth will sharply contract
this year. The banks affected are Bank Bumiputra Malaysia,
which went from C to D, Bank of Commerce, which went from
B/C to C/D, Malayan Banking, which went from B to C, and
Public Bank, which dropped from B/C to C.

The anticipated sharp drop in growth, from an annual rate
of more than eight percent in 1997 to an anticipated one to
two percent this year, could have a strong impact on the
asset quality of the four banks. Fitch noted that signs of
an economic downturn were already appearing in a pronounced
fall in bank credit approvals since December 1997.
(Agence France-Presse 20-Mar-1998)


BANK OF COMMERCE: IBCA Lowers Ratings
-------------------------------------
The US agency Fitch IBCA on Friday said it had
downgraded its ratings on four Malaysian banks, citing
expectations that economic growth will sharply contract
this year. The banks affected are Bank Bumiputra Malaysia,
which went from C to D, Bank of Commerce, which went from
B/C to C/D, Malayan Banking, which went from B to C, and
Public Bank, which dropped from B/C to C.

The anticipated sharp drop in growth, from an annual rate
of more than eight percent in 1997 to an anticipated one to
two percent this year, could have a strong impact on the
asset quality of the four banks. Fitch noted that signs of
an economic downturn were already appearing in a pronounced
fall in bank credit approvals since December 1997.
(Agence France-Presse 20-Mar-1998)


MALAYAN BANKING: IBCA Lowers Ratings
------------------------------------
The US agency Fitch IBCA on Friday said it had
downgraded its ratings on four Malaysian banks, citing
expectations that economic growth will sharply contract
this year. The banks affected are Bank Bumiputra Malaysia,
which went from C to D, Bank of Commerce, which went from
B/C to C/D, Malayan Banking, which went from B to C, and
Public Bank, which dropped from B/C to C.

The anticipated sharp drop in growth, from an annual rate
of more than eight percent in 1997 to an anticipated one to
two percent this year, could have a strong impact on the
asset quality of the four banks. Fitch noted that signs of
an economic downturn were already appearing in a pronounced
fall in bank credit approvals since December 1997.
(Agence France-Presse 20-Mar-1998)


KONSORTIUM PERKAPALAN: Gov't Responds to Criticism
--------------------------------------------------
Deputy Prime Minister Datuk Seri Anwar Ibrahim has hit out
at criticisms the government undertook a bail-out of
Konsortium Perkapalan Bhd (KPB), saying the allegations
were untrue and unfounded as the purchase price was still
being negotiated. He told a press conference after a
dialogue on the economy here today that whether or not such
a case amounted to a bail-out, or that the purchase was to
help KPB, could only be seen from the price and the
valuation.

In this case, he said Petronas or Malaysian International
Shipping Corporation (MISC) have yet to decide on the price
as it will be decided based on the market value which would
be determined by an independent valuer. On March 6, MISC
signed two memoranda of understanding with Petronas and
Konsortium Perkapalan to takeover Petronas Tankers Sdn Bhd
from Petronas and Pacific Basin from Konsortium Perkapalan.

In the deal, MISC would also purchase 51 per cent equity in
Asia LNG Transport and Asia LNG Transport Dua Sdn Bhd, both
subsidiaries of PNSL Bhd as well as nine ships owned by
PNSL and two more newly-built ships. PNSL is a wholly-owned
subsidiary of Konsortium Perkapalan.

The acquisition is also being viewed as being in line with
the government's intention to strengthen the nation's
shipping industry and to ease the pressure on Malaysia's
balance of payment which has been in deficit because of the
dependence on foreign shipping lines. Anwar also said that
the MISC's acquisition of Pacific Basin Bulk Shipping has
attracted a lot of criticism especially with the foreign
media.  (The Star Online 20-Mar-1998)


PUBLIC BANK: IBCA Lowers Ratings
--------------------------------
The US agency Fitch IBCA on Friday said it had
downgraded its ratings on four Malaysian banks, citing
expectations that economic growth will sharply contract
this year. The banks affected are Bank Bumiputra Malaysia,
which went from C to D, Bank of Commerce, which went from
B/C to C/D, Malayan Banking, which went from B to C, and
Public Bank, which dropped from B/C to C.

The anticipated sharp drop in growth, from an annual rate
of more than eight percent in 1997 to an anticipated one to
two percent this year, could have a strong impact on the
asset quality of the four banks. Fitch noted that signs of
an economic downturn were already appearing in a pronounced
fall in bank credit approvals since December 1997.
(Agence France-Presse 20-Mar-1998)



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

BRIGHTSTAR TROPICAL: Food Firm Seeks Debt Relief
------------------------------------------------
Food manufacturer and exporter Brightstar Tropical Fruits  
Phils., Inc. is asking the Securities and  Exchange
Commission (SEC) for the authority to suspend  payments on
loans amounting to 11.6 million Philippine pesos (PhP). It
said the surge in interest rates following the currency
crisis and huge losses because of spoiled shipments
weakened its finances. The firm said it was forced to ask
for a moratorium on debt payments from the Development Bank
of the Philippines (DBP), its sole creditor. The firm
manufactures and exports processed food products such as
fruits, fruit juices, ethnic Filipino food and other food
items to Hawaii, Tokyo and Taiwan.  (BusinessWorld
23-Mar-1998)



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


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

ALPHATEC ELECTRONICS: Stock Trading Resumes, But No Plan
--------------------------------------------------------
After a month-long halt in trading, the Stock Exchange of
Thailand, still considering Alphatec Electronics Public
Company Limited for possible delisting, announced that it
would permit trading in ATEC shares for the next 30 days,
from 23 March through 27 April 1998.  (SET 23-Mar-1998)

Last month, ATEC's steering committee submitted details of
a restructuring plan covering more than US$330 million to
the company's shareholders meeting, but that plan was
rejected by creditors and was opposed by the Company's
founder.  (TCRAP 18-Mar-1998).

The Stock Exchange of Thailand further announced yesterday
that it would "expand the ceiling and floor limits for the
common stock of ATEC."  As a result, the SET explained, "in
order to allow market mechanism to work freely, the ceiling
& floor limits for ATEC the main board will be expanded
from the regular + 30% to + 100% of its last trading
prices."  (SET 23-Mar-1998).


STA GROUP: 1997 Results of Operations
-------------------------------------
For the year ending December 31, 1997, STA Group (1993)
Public Company Limited (SET:STACO) reported a Baht5.6
billion net loss.  This compares to a Bht2.4 billion for
the year ending December 31, 1996.


TIPCO ASPHALT: Rating Placed on CreditAlert
-------------------------------------------
TIPCO Asphalt Plc's rating has been put on CreditAlert
following a significant increase in the company's debt
burden on account of the baht's depreciation against the US
dollar.

Making this announcement Monday, Thai Rating and
Information Services (Tris), said that the rising debt
burden had caused the company to breach covenants of the
Bt500-million debentures with warrants and the Bt1.3-
billion convertible debentures that require the company to
maintain a debt to equity (D/E) ratio lower than 2:1.

Tasco was also committed to maintain the ratio of total
unpledged assets to total unsecured liabilities lower than
1.25:1. With the company's high liabilities of Bt7.44
billion and a net equity which absorbs all exchange losses,
Tasco's D/E ratio rose to 4.9:1 while its unpledged assets
to unsecured liabilities ratio dropped to 1.2:1 at the end
of last year.

Failure to comply with the covenants would entitle
debenture holders to force Tasco to repay the whole
principal and interest. Despite the huge amount of cash,
about Bt3 million, on hand, the repayment of debentures
would dissipate the company's future financial strength,
Tris said.

Tasco's rating for the Bt500 million senior debentures due
in 1999 is currently BBB-, and its Bt1.3-billion senior
convertible debentures due in 2000 has a BBB- rating
status. Its credit alert designation is negative, according
to the Thai rating agency.  (The Nation 24-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
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