TCRAP_Public/980325.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      

      Wednesday, March 25, 1998, Vol. 1, No. 26

                    Headlines

C H I N A   &   H O N G   K O N G

CATHAY PACIFIC: More Layoffs
CHINA EVERBRIGHT: Looking for Outside Funding Sources
CLIMAX INTERNATIONAL: Asking Banks to Reschedule Debts
HWA KAY: Negotiations with Banks & Investors Continue
LEADING SPIRIT: Considering $300 Million Placement
LEADING SPIRIT: SFC Commences Enquiry into Stock Trading
PEREGRINE INVESTMENTS: Price Waterhouse Defends its Role
YAOHAN: Reports Losses up to $1.36b

I N D O N E S I A

J A P A N  

ASAKAWAGUMI CO.: Financial Overview
CO-OP CHEMICAL: Financial Overview
DAIHATSU MOTOR: Shares Down on Thai Closing
FUJI BANK: Moody's Assigns Baa2 Debt Rating
ISETAN CO.: Moody's Assigns Ba3 Debt Rating
MITSUBISHI HEAVY: Plans New Issue
MITSUBISHI MATERIALS: Moody's Assigns Baa2 Debt Rating
MITSUI TRUST & BANKING: Shares Down on Lower Rating
MEIDENSHA CORP.: Shares Down
NIKKO SECURITIES: Moody's Assigns Baa1 Debt Rating
NTN CORPORATION: Moody's Assigns Baa2 Debt Rating
SEKISUI HOUSE: Moody's Assigns Baa1 Debt Rating
SUMITOMO CHEMICAL: Moody's Assigns Baa1 Debt Rating
SUMITOMO OSAKA: Moody's Assigns Ba2 Debt Rating
TOSTEM CORP.: Curtails Earnings Forecast
YAKULT HONSHA: Shares Not Traded
YASUDA TRUST & BANKING: Shares Lower on Lower Rating

K O R E A

HALLA PULP & PAPER: To Finalize Negotiations with Bowater
HANBO STEEL: Possible Takeover by U.S. Steel and POSCO
HANSOL CORP.: Emerging from Bankruptcy
KIA MOTORS: Hyundai Confident of Kia Takeover

M A L A Y S I A

HALIM SECURITIES: Takeover by KLSE
SIME BANK: Suitors Given Deadline on Details
SIME BANK: To Publish Full Financial Statement

P H I L I P P I N E S

TALSAN ENTERPRISES: SEC Dismisses Petition for Relief

S I N G A P O R E

PARKWAY HOLDINGS: Reports Sharply Lower Profits

T H A I L A N D

TONGKAH HARBOUR: Taps Financial Professionals
QUALITY HOUSE: Recapitalization Plan on Track




C H I N A   &   H O N G   K O N G

CATHAY PACIFIC: More Layoffs
----------------------------
Cathay Pacific Airways yesterday said it was laying off 130
staff in its technical stores department to cut costs,
raising to 870 the number of employees fired so far this
year. The airline said the work of the technical stores
department, which stores and distributes aircraft parts,
would be taken on by Hong Kong Aircraft Engineering Co,

Cathay earlier this month revealed that profit slumped 55.5
per cent last year to $1.69 billion (TCRAP 13-Mar-1998).
The results were hurt further by an exceptional loss of
$374 million relating to the severance payments to staff
made redundant in January.  A number of industry analysts
have predicted that Cathay will lose money this year, the
first time since its 1986 listing on the stock market.
(South China Morning Post 24-Mar-1998)


CHINA EVERBRIGHT: Looking for Outside Funding Sources
-----------------------------------------------------
China Everbright Limited, noting unusual increases in the
price and trading volume of the shares of the Company,
reminded shareholders that, as stated in the Company's
announcement dated 11th February 1998, "as an ongoing and
prudent measure, the Company is always reviewing its
financial position and exploring possible equity and debt
financing to fund its ongoing or possible future
investments. Such exploration, which may or may not lead to
a binding agreement, has not resulted into any binding
commitment on the part of the Company," as of yesterday
afternoon.

China Everbright has been involved in negotiations in
relation to a Project which may involve the Company
investing in the development, construction and operation of
a bridge and toll road in Fuzhou. Substantial progress in
the negotiation has since been made and the Company has
entered into a non-legally binding letter of intent and a
non-legally binding memorandum of understanding setting out
the possible terms of the Company's investment in the
Project.  However, as of yesterday, no binding commitment
has been made.  Based on current estimates, the total
investment required of the Project is expected to be
approximately RMB1,410,000,000 but the extent of the
Company's participation has not yet been finalised as it is
possible that other co-investor(s) may also be involved.

In the event that the Company decides to participate in 80%
or more of the Project, it may amount to a possible major
transaction of the Company. The Company is still conducting
due diligence on the Project which is also still pending
compliance with certain regulatory requirements in the
People's Republic of China. The Company is still  
considering various means of financing the Project which
may include debt or equity financing or both.  (SEHK 24-
Mar-1998)


CLIMAX INTERNATIONAL: Asking Banks to Reschedule Debts
------------------------------------------------------
In a brief written statement, Climax International Company
Limited announced yesterday that it has entered into
discussions with its bankers with a view to rescheduling
its indebtedness.  (SEHK 24-Mar-1998)


HWA KAY: Negotiations with Banks & Investors Continue
-----------------------------------------------------
Responding to newspaper articles in several newspapers on
21st March, 1998 speculating on whether RJP Electronics
Limited might acquire control of Hwa Kay Thai Holdings
Limited, Hwa Kay's Board said that while one of its
directors had very preliminary discussions with a
representative of RJP no specific terms were discussed and
the approach did not lead to any written proposal.

As previously announced including on 14th February, 1998,
the Board is continuing in its discussions with numerous
parties (including the Company's bankers and a major
business partner) and has had and is having discussions
with several potential investors.

Trading in the shares and warrants of the Company was
suspended at 12:30 p.m. on 14th January, 1998. The shares
and warrants will remain suspended pending the finalization
of the financial restructuring plan. The Board indicated
yesterday that it will keep shareholders and investors
apprised of relevant information as and when appropriate
consistent with the obligations under the Listing Rules of
the Stock Exchange.

"The Company has initiated discussions with Hwa Kay Thai
but these are at a very early stage and no terms at all
have been agreed. There is no certainty that any
transaction will result," RJP added in a written statement
yesterday.  (SEHK 24-Mar-1998)


LEADING SPIRIT: Considering $300 Million Placement
--------------------------------------------------
Cash-strapped Leading Spirit (Holdings) is considering a
$300 million placement by subsidiary, Leading Spirit
Conrowa Electrics (LS Conrowa), as part of an ongoing
restructuring of its finances. The Securities and Futures
Commission suspended trading in LS Conrowa on November 21
last year after it discovered only 4.25 per cent of the
issued share capital was held by the public while 19.08 per
cent was held by a group of connected traders.

It is understood the placement would increase the company's
free float and help alleviate Leading Spirit's $1.2 billion
debt. Brokers said Leading Spirit planned to sell about 700
million LS Conrowa shares - or about 10 per cent of its 75
per cent stake - at 40 cents each to retail investors.

The commission alleged LS Conrowa shares were concentrated
in the hands of certain connected traders, which caused the
share price to rise from its $1 issue price last June to
$1.64 before the suspension. The commission's probe into LS
Conrowa shares continues. This effectively valued the share
at $9.84 after taking into account a five-for-one bonus
issue on September 22 last year.

Meanwhile, Leading Spirit's creditor banks said the company
would soon conclude a share placement to a mainland
investor. The placement would see the company issuing new
shares and chairman Wong Shi-ling selling part of his stake
to the unnamed investor for about $150 million, they said.
(South China Morning Post 24-Mar-1998)


LEADING SPIRIT: SFC Commences Enquiry into Stock Trading
--------------------------------------------------------
The Securities and Futures Commission ordered a temporary
suspension in the trading of shares in Leading Spirit
Conrowa Electric Company Limited due to enquiry into
unusual trading movement.  The SFC has requested
clarification of the Company's financial position before it
will approve a resumption in trading.  (SEHK 24-Mar-1998)


PEREGRINE INVESTMENTS: Price Waterhouse Defends its Role
--------------------------------------------------------
Price Waterhouse has defended its role in the sale of
Peregrine Investments Holdings' controlling stake in Kwong
Sang Hong International, claiming it was carried out in a
"careful and controlled manner" (TCRAP 23-Mar-1998). The
international accountancy firm - which is acting as the
provisional liquidator of the failed investment bank - was
reacting to a report in Sunday Money in which merchant
bankers claimed the sale of the property company was
carried out carelessly and to the detriment of creditors.

The report claimed Peregrine's 70.61 per cent sale in Kwong
Sang Hong had been sold to Power Jade at a significant
discount to the firm's tangible net asset value of $5 per
share, as determined by an independent valuation late last
year.

Power Jade, a company jointly owned by Chinese Estates
Holdings and Anita Shum, bought the shares at $1.70 each.
Price Waterhouse said in a statement signed by one of the
provisional liquidators, David Hague, that at the time of
the appointment of the provisional liquidators on January
13 "there was considerable concern about the prospects for
the Hong Kong property market as a whole". It said the net
asset value of Kwong Sang Hong was not a relevant benchmark
for determining the sale price, since the provisional
liquidators were not in a position to force a liquidation
of the company.

"The market price of the shares was therefore a much more
realistic guide to the value of the interest," it said.
Kwong Sang Hong's shares traded at between $1.63 and $1.95
from the time the liquidators were appointed to the date of
the sale. Price Waterhouse also denied the sale had been
unauctioned. The company had been properly shown to the
market, it said.

"More than 12 parties expressed an interest in the
possibility of acquiring Peregrine's holding. Five parties
made offers for the shares," it said. "All the offers made
were at prices close to that finally obtained." Meanwhile,
Price Waterhouse said it would organise creditors' meetings
"as soon as possible" with respect to Peregrine Investments
Holdings and its fixed income and derivatives subsidiaries.
Mr Hague said it was not practical at this stage to
estimate the likely dividend that ultimately would be paid
to creditors of the firms.  (South China Morning Post
24-Mar-1998)


YAOHAN: Reports Losses up to $1.36b
-----------------------------------
Yaohan International Holdings, whose retailing arm is in
liquidation, has reported a $1.36 billion attributable loss
for the six months to September, up sharply from a $91
million loss in the previous corresponding period. The
decline was attributable primarily to a $1.16 billion
exceptional loss, including a $699 provision on doubtful
debts, losses from value of trademarks, goodwill, pre-
operating expenses and investment in an associate company.

The loss was incurred before the liquidation of the
company's 42 per cent owned retailing arm Yaohan Hongkong
Corp last month, three months after core business Yaohan
Department Stores (HK) was wound up with about $1.1 billion
in liabilities.

Yaohan Hongkong is also troubled by $91.5 million in
outstanding debts. During the first half, turnover
plummeted 75 per cent to $332 million, while operating
losses rose to $189 million from $15.28 million. Losses per
share soared to $1.377 from 9.3 cents. No interim dividend
was proposed.

Yaohan International last month reshuffled its board, with
mainland-backed minority shareholders such as Citic
Australia and China Venturetech Investment Corp taking the
helm.  (TCRAP 24-Mar-1998)

Yaohan International is 19.867% held by property developer
Pacific Concord Holdings, 19.868% by Japanese businessman
Kazuo Wada and his brothers, 7.5% by Citic Australia and
3.6% by China Venturetech. (South China Morning Post
24-Mar-1998)


I N D O N E S I A



J A P A N  

ASAKAWAGUMI CO.: Financial Overview
-----------------------------------
Asakawagumi Co., Ltd. Amounts stated are in thousands of
Yen for the year ending on each date indicated.  Zeros
generally indicate financial data is not available.

                    31-Mar-1997   31-Mar-1996   31-Mar-1995
                    -----------   -----------   -----------
Total Revenues      52,928,585    50,993,198             0
Operating Income    -1,250,142     2,435,067             0
Net Income          -7,240,313      -603,861             0

Current Assets       6,376,232    79,794,670             0
Current Liabilities 61,162,586    63,840,339             0
Working Capital     54,786,354    15,954,331             0

Total Assets        78,154,314    87,312,366             0
Total Liabilities   74,482,012    76,326,133             0
Shareholder Equity   3,672,302    10,986,233             0


CO-OP CHEMICAL: Financial Overview
----------------------------------
Co-Op Chemical Co., Ltd. Amounts stated are in Millions of
Yen for the year ending on each date indicated.  Zeros
generally indicate financial data is not available.

                   31-Mar-1998   31-Mar-1997   31-Mar-1996
                   -----------   -----------   -----------
Total Revenues               0    27,022,516    27,712,995
Operating Income             0     5,595,394     6,177,174
Net Income                   0      -163,856       -28,719

Current Assets               0    12,637,084    14,870,925
Current Liabilities          0    18,780,870    20,714,928
Working Capital              0    -6,143,786    -5,844,003

Total Assets                 0    29,349,520    32,415,938
Total Liabilities            0    24,669,783    27,571,532
Shareholder Equity           0     4,679,737     4,844,406


DAIHATSU MOTOR: Shares Down on Thai Closing
-------------------------------------------
Daihatsu Motor Co. (7262 JP ) rose 5 yen to 470. The
company will become the first Japanese automaker to end
production and sales in Thailand because of that nation's
economic problems, Jiji Press reported. Daihatsu will set
up a new company next month to provide after-sales service
and parts to existing owners, the report said. (Bloomberg
Japan Equity Movers 24-Mar-1998)


FUJI BANK: Moody's Assigns Baa2 Debt Rating
-------------------------------------------
Moody's Investors Service assigned its Baa2 rating to US$     
100,000,000 of Perpetual Guaranteed Subordinated Floating
Rate Eurobonds, Series 78, of Fuji Finance (Cayman) Ltd.
issued by Fuji Bank, Ltd.

Bonds rated as Baa by Moody's are considered as medium-
grade obligations (i.e., they are neither highly protected
nor poorly secured).  Interest payments and principal
security appear adequate for the present but certain
protective elements may be lacking or may be
characteristically unreliable over any great length of
time.  Such bonds lack outstanding investment
characteristics and in fact have speculative
characteristics as well.


ISETAN CO.: Moody's Assigns Ba3 Debt Rating
-------------------------------------------
Moody's Investors Service assigned its Ba3 rating to Yen     
10,000,000,000 of 2.65% Series 4 Japan Bonds due 2002
issued by Isetan Co., Ltd.

Bonds which are rated Ba by Moody's are judged to have
speculative elements; their future cannot be considered as
well-assured. Often the protection of interest and
principal payments may be very moderate, and thereby not
well safeguarded during both good and bad times over the
future. Uncertainty of position characterizes bonds with
Moody's Ba rating.


MITSUBISHI HEAVY: Plans New Issue
---------------------------------
Mitsubishi Heavy Industries Ltd. plans to issue roughly 100
billion yen of straight corporate bonds within fiscal 1998
in order to refinance short-term bank loans taken out last
December, say company officials.

Mitsubishi Heavy is suffering a cash squeeze due to  
worsening terms for payment on plant construction, and as a  
result it increased combined long- and short-term borrowing  
by 280 billion yen beginning last November. Of the that  
amount 150 billion yen came from short-term loans coming
due at the end of this year.

With Japanese financial institutions clamping down on new  
lending Mitsubishi Heavy plans to increasingly turn to
direct financing, according to an official. After its banks  
demanded higher interest on some of its borrowing, triple-A  
rated Mitsubishi Heavy floated 100 billion yen of bonds on  
March 11.  (Asia Pulse 24-Mar-1998)


MITSUBISHI MATERIALS: Moody's Assigns Baa2 Debt Rating
------------------------------------------------------
Moody's Investors Service assigned its Baa2 rating to Yen     
10,000,000,000 of 2.425% Series 9 Japan Bonds due 2003
issued by Mitsubishi Materials Corp.

Bonds rated as Baa by Moody's are considered as medium-
grade obligations (i.e., they are neither highly protected
nor poorly secured).  Interest payments and principal
security appear adequate for the present but certain
protective elements may be lacking or may be
characteristically unreliable over any great length of
time.  Such bonds lack outstanding investment
characteristics and in fact have speculative
characteristics as well.

Additionally, Moody's assigned its Baa2 rating to Yen     
10,000,000,000 of 3.10% Series 10 Japan Bonds due 2008
issued by Mitsubishi Materials.

Bonds rated as Baa by Moody's are considered as medium-
grade obligations (i.e., they are neither highly protected
nor poorly secured).  Interest payments and principal
security appear adequate for the present but certain
protective elements may be lacking or may be
characteristically unreliable over any great length of
time.  Such bonds lack outstanding investment
characteristics and in fact have speculative
characteristics as well.


MITSUI TRUST & BANKING: Shares Down on Lower Rating
---------------------------------------------------
Mitsui Trust & Banking Co. (8401 JP ) fell 11 yen to 370.
The trust bank's senior debt rating was cut to `Baa3' by
Moody's Investors Service. The credit rating agency cited
the flagging economy, which may compound the bank's already
weak financial fundamentals, as a reason for downgrade.
(Bloomberg Japan Equity Movers 24-Mar-1998)


MEIDENSHA CORP.: Shares Down
----------------------------
Meidensha Corp. (6508 JP ) fell 17 yen to 396. The electric
machinery maker reversed its previous forecast to a pretax
loss of 1 billion yen for the year ending in March. That's
200.0 percent less than the most recent forecast by Toyo
Keizai.  (Bloomberg Japan Equity Movers 24-Mar-1998)


NIKKO SECURITIES: Moody's Assigns Baa1 Debt Rating
--------------------------------------------------
Moody's Investors Service assigned its Baa1 rating to US$     
2,400,000,000 of Senior Unsecured Debt issued by Nikko
Securities Co., Ltd. (The).

Bonds rated as Baa by Moody's are considered as medium-
grade obligations (i.e., they are neither highly protected
nor poorly secured).  Interest payments and principal
security appear adequate for the present but certain
protective elements may be lacking or may be
characteristically unreliable over any great length of
time.  Such bonds lack outstanding investment
characteristics and in fact have speculative
characteristics as well.


NTN CORPORATION: Moody's Assigns Baa2 Debt Rating
-------------------------------------------------
Moody's Investors Service assigned its Baa2 rating to Yen     
40,000,000,000 of Debt Securities due 2000 issued by NTN
Corporation.

Bonds rated as Baa by Moody's are considered as medium-
grade obligations (i.e., they are neither highly protected
nor poorly secured).  Interest payments and principal
security appear adequate for the present but certain
protective elements may be lacking or may be
characteristically unreliable over any great length of
time.  Such bonds lack outstanding investment
characteristics and in fact have speculative
characteristics as well.


SEKISUI HOUSE: Moody's Assigns Baa1 Debt Rating
-----------------------------------------------
Moody's Investors Service assigned its Baa1 rating to Yen     
10,000,000,000 of 2.40% Series 8 Japan Bonds due 2005
issued by Sekisui House, Ltd.

Bonds rated as Baa by Moody's are considered as medium-
grade obligations (i.e., they are neither highly protected
nor poorly secured).  Interest payments and principal
security appear adequate for the present but certain
protective elements may be lacking or may be
characteristically unreliable over any great length of
time.  Such bonds lack outstanding investment
characteristics and in fact have speculative
characteristics as well.


SUMITOMO CHEMICAL: Moody's Assigns Baa1 Debt Rating
---------------------------------------------------
Moody's Investors Service assigned its Baa1 rating to Yen     
10,000,000,000 of Fixed/Floating Rate Euro Medium Term
Noted, Series 39, due 2005 of Sumitomo Chemical (U.K.) plc.
issued by Sumitomo Chemical Co., Ltd.

Bonds rated as Baa by Moody's are considered as medium-
grade obligations (i.e., they are neither highly protected
nor poorly secured).  Interest payments and principal
security appear adequate for the present but certain
protective elements may be lacking or may be
characteristically unreliable over any great length of
time.  Such bonds lack outstanding investment
characteristics and in fact have speculative
characteristics as well.


SUMITOMO OSAKA: Moody's Assigns Ba2 Debt Rating
-----------------------------------------------
Moody's Investors Service assigned its Ba2 rating to Yen     
5,000,000,000 of 2.55% Series 3 Japan Bonds due 2001
issued by Sumitomo Osaka Cement Co., Ltd.

Bonds which are rated Ba by Moody's are judged to have
speculative elements; their future cannot be considered as
well-assured. Often the protection of interest and
principal payments may be very moderate, and thereby not
well safeguarded during both good and bad times over the
future. Uncertainty of position characterizes bonds with
Moody's Ba rating.


TOSTEM CORP.: Curtails Earnings Forecast
----------------------------------------
Tostem Corp. has curtailed its earnings forecast for the
year ending March 31, projecting a  net loss of 8 billion
yen. The leading maker of aluminum building materials,
which posted a net profit of 18.8 billion yen the previous
year, attributed the reversal largely to a 10 billion-yen
charge against lending to a Hong Kong subsidiary as well as
erosion of margins due to increased competition.

Tostem expects to regain net earnings next fiscal year,  
reckoning that pretax profit will improve to 20 billion yen  
from an estimated 10 billion yen this year. But the road to  
recovery seems like anything but smooth amid a persistent  
slump in housing starts.

Tostem projects 565 billion yen in sales for the year
through this March, down 11% from the year before. The  
estimate represents a second downward revision this fiscal  
year, following one announced at the same time as results
for the year's first half. The first revision reflected an  
anticipated drop in housing starts to around 1.3 million
units from 1.63 million the previous year. Based on the
pace of second-half sales, management now puts annual
housing starts at the lower half of the 1.2 million range.

Product by product, sales are estimated to dip 13% for  
housing sashes, 11% for building sashes and 6% for housing  
equipment such as kitchen and bathroom systems. The setback
in high-margin housing equipment is proving particularly  
hurtful to earnings, leading Tostem to project a drop of 6  
billion yen in gross profit. The firm also estimates the  
negative effect on profits of intensified competition in a  
shrunken market at 3 billion yen.

The latest cut in earnings forecast sent the Tostem stock  
spiraling down, with its downside still tested amid the
cloudy business environment. To meet the target of 20
billion yen in fiscal 1998 pretax profit, the company will
have to shave more than that amount off its expenses, one
analyst said.  (Asia Pulse 24-Mar-1998)


YAKULT HONSHA: Shares Not Traded
--------------------------------
Yakult Honsha Co. (2267 JP) fell 46 yen to 574 yen.  The
drink maker's shares were untraded for two days as sell
offers exceeded buy bids.  Yakult said Friday it would
book a charge of 105.7 billion yen for the year to March 31
for investment losses, primarily involving derivatives.
Tsutomu Matsuno, an analyst at Daiwa Institute of Research
Ltd., said a price of around 500 yen is fair value for
Yakult's shares in view of the new information. (Bloomberg
Japan Equity Movers 24-Mar-1998)


YASUDA TRUST & BANKING: Shares Lower on Lower Rating
----------------------------------------------------
Yasuda Trust & Banking Co. (8404 JP ) fell 11 yen to 225.
The trust bank's senior debt rating was cut to `Ba1' by
Moody's Investors Service. The credit rating agency cited
the flagging economy, which may compound the bank's already
weak financial fundamentals, as a reason for downgrade. The
bank's financial fundamentals are among the weakest of
Japanese banks, it said.  (Bloomberg Japan Equity Movers
24-Mar-1998)



K O R E A


HALLA PULP & PAPER: To Finalize Negotiations with Bowater
---------------------------------------------------------
South Korea's Halla Pulp & Paper Co. said Tuesday that the
insolvent company will finalize negotiations with Bowater
Inc. of the United States over stake sales by the end of
this month. "We are close to winding up negotiations with
Bowater that started since early this year. We will be able
to notify the court of the results by late this month," a
company spokesman said.

Halla Pulp & Paper has applied for court protection for  
debt rescheduling on Dec. 6, after the insolvency of its
parent group Halla.

"We will be able to convert ourselves into a competitive  
company once we lure equity investment from the largest
U.S. newsprint producer, Bowater," the spokesman said.

Halla Pulp had trouble acquiring raw material since  
defaulting on debts but has been operating at 95 percent  
capacity since this month. The paper manufacturer expects
to see its exports grow by 54.5 percent to 170 billion won
(US$116.6 million) this year, thanks to brisk exports to
Japan, India, and Egypt, the spokesman added.  (Asia Pulse
24-Mar-1998)


HANBO STEEL: Possible Takeover by U.S. Steel and POSCO
------------------------------------------------------
A giant U.S. steelmaker proposed the take-over of bankrupt
Hanbo Steel together with another South Korean firm, and is
receiving positive signals, the Seoul Economic Daily
reported Tuesday.

The paper quoted a high-level ruling party source as saying  
U.S. Steel, the largest steel company in the United States,  
sent a letter to Pohang Iron and Steel Co. (POSCO) showing  
interest in a joint takeover of Hanbo.

A POSCO official acknowledged the proposal and said it was  
under positive review, adding that no decision has yet been
made.

Another official said the U.S. company was interested in  
Hanbo's "A" district but may buy the entire Tangjin steel
mill depending on results of negotiations with creditor
banks, the paper reported.

Park Tae-joon, president of United Liberal Democrats and  
founder of POSCO, indicated last week after meeting with  
President Kim Dae-jung that the government hopes to
liquidate insolvent corporations, including Hanbo, soon via  
international bidding.

POSCO and U.S. Steel have already been engaged in  
successful joint ventures since 1986. (Asia Pulse
24-Mar-1998)


HANSOL CORP.: Emerging from Bankruptcy
--------------------------------------
South Korea's Hansol Corp. has finally seen profits
following its four-year managerial hardships since it went
broke in 1994, a Hansol spokesman said Monday.

The newsprint exporter, which departed from court  
receivership last month, posted a net profit of 2.5 billion  
won on sales of 390 billion won for 1997, up 263 percent
from the previous year.

The Korean firm plans to boost sales to 1.2 trillion won  
this year by diversifying export markets and implementing
managerial reform.  (Asia Pulse 24-Mar-1998)


KIA MOTORS: Hyundai Confident of Kia Takeover
---------------------------------------------
South Korea's Kia Motors Corp. on Monday declared war
against any takeover bid as the giant Hyundai Group vowed
to push ahead with its ambitious plan to take over the
embattled car firm. "We are confident our takeover plan
will succeed. We hope to start negotiations with Kia's
creditors soon," a Hyundai spokesman told AFP.

Hyundai also invoked patriotism, warning that South Korea's
auto industry would collapse if a foreign firm took over
Kia. But Kia Motors, the country's fourth largest car maker
which has been struggling to survive, hit back, pledging
"an all-out fight against any improper decisions regarding
our fate."

Kia blasted Hyundai and other industrial giants as
"hyenas," urging the government to solve Kia's problem in a
"fair and transparent manner." But Kia's voice was not
strong enough to silence widespread support from
economists, creditors and even a rival auto-making
conglomerate, the Daewoo Group.

The stock market, too, liked the plan, and Kia Motor closed
limit-up 750 at 7,080 won and Hyundai Motor closed up 100
at 23,800 won.

Hyundai Motor estimated its official stake in Kia at six
percent but newspapers said its subsidiaries had acquired a
20 percent stake.

Analysts said Hyundai could be the best choice for Kia,
saying both the government and Kia's creditors appeared to
be supporting Hyundai.

The United States' Ford Motor Co., Kia's largest foreign
shareholder, was the largest potential block to Hyundai's
move but analysts said it would remain neutral.

"I don't think Ford, which has not reached a solid
agreement with Samsung Motors, would put a brake on
Hyundai's bid," said Ssangyong Investment and
Securities' Shon Jong-Won.  (Agence France-Presse 23-Mar-1998)


M A L A Y S I A

HALIM SECURITIES: Takeover by KLSE
----------------------------------
The Kuala Lumpur Stock Exchange (KLSE) is taking control
from Tuesday of the operations of Halim Securities Sdn Bhd,
an 80-percent subsidiary of Uniphoenix Corporation Bhd,
following the former's failure to meet payment obligations
to the exchange's clearing house, the exchange's executive
chairman Mohd Azlan Hashim announced Monday.

He said Halim Securities had breached the conditions under  
the trading restrictions resulting in its failure to meet
its obligation to the clearing house, Securities Clearing
Automated Network Services Sdn Bhd (SCANS). Azlan told a
news conference here that Halim Securities has an
outstanding payment of less than RM10 million (US$2.77  
million) to the clearing house.

After consultations with the Securities Commission (SC), he  
explained, the exchange decided to take charge of Halim  
Securities for purposes of enforcing various measures
relating to dealing in securities by the company pursuant
to the KLSE's powers under Rule 15B (1)(A) of its rules
relating to member companies.

Azlan said investing clients of Halim Securities can still  
trade through the securities company despite the exchange  
taking control over its operations. "While the exchange is
in control of Halim Securities, trading operations at the
company will continue subject to the conditions of the
restrictions imposed," he added.

Azlan said following this development, trading of  
Uniphoenix Corporation's shares will be suspended from  
tomorrow until further notice so as to ensure proper  
dissemination of information.

Halim Securities had failed to settle its obligation to  
SCANS beginning March 19, forcing the exchange to despatch
a team of on-site supervisors on Friday.  (Asia Pulse
24-Mar-1998)


SIME BANK: Suitors Given Deadline on Details
--------------------------------------------
Rashid Hussain Bhd, RHB Capital Bhd and RHB Sakura Merchant
Bankers Bhd have been given five additional market                 
days to release funding details for the Sime Bank Bhd
purchase, the latter's subsequent merger with RHB Bank, and
the recapitalisation of the merged entities.

The KLSE said in a statement that it granted the additional
five days from yesterday to March 27 "in view that the
proposed funding scheme has not been finalised."  (The Star
Online 24-Mar-1998)


SIME BANK: To Publish Full Financial Statement
----------------------------------------------
Sime Bank Bhd, which posted a massive pre-tax loss for the
six month period ended Dec 31, 1997, will publish a full
financial statement Tuesday if approved by the central
bank, Bank Negara Malaysia. Its executive chairman and
chief executive officer Tunku Ahmad Tunku Yahya said in a
statement late Monday that once details of the financial
statement were made public, the bank's management would be
available to field all queries relating to its results.

In the meantime, Tunku Ahmad said, the management reassured  
depositors and lenders that the bank and its subsidiaries'  
businesses would operate as usual. He also reiterated this
evening's statement by Bank Negara governor Ahmad Mohd Don
at a news conference that Sime Bank was not insolvent.

He said as was disclosed by the central bank, Sime Bank  
recorded a pre-tax loss of RM1.57 billion (US$1 = RM3.6)
for the half year ended Dec 31, 1997 which led to a
reduction in the bank's risk weighted capital adequacy
ratio (RWCR) to 2.9 percent, which was below the minimum
required level of eight percent.

As such, the bank would need to undertake a
recapitalisation exercise to bring it back to eight. Tunku
Ahmad said the management would like to stress that the
pre-tax loss reflected provisions totalling RM1.8 billion  
to cover in full the bank and its subsidiaries' bad and  
doubtful assets resulting from its Malaysian, regional and  
stockbroking activities.

"We would also like to emphasize that Bank Negara's  
statement also includes an unequivocal statement that for
all depositors of Sime Bank and its subsidiaries in
Malaysia and overseas that their deposits and interests are
guaranteed in full by the government and this includes
interbank deposits," he added.

In giving that guarantee this evening, the central bank's  
governor had called on Sime Bank's customers to have  
confidence in the bank to avoid a run on it.  (Asia Pulse
24-Mar-1998)


P H I L I P P I N E S

TALSAN ENTERPRISES: SEC Dismisses Petition for Relief
-----------------------------------------------------
The Securities and Exchange Commission (SEC) has dismissed
the petition of Talsan Enterprises, Inc. for a temporary
relief from the payment of its loans amounting to 5.16
million Philipine pesos (PhP).

In the order issued March 19, the SEC said it is
"constrained" to dismiss the case as Talsan failed to
submit to the commission pertinent documents and data about
its finances and its operations during its set deadline.
In an order released January 14, the SEC directed the firm
to submit the following documents: its audited financial
statements, interim financial statement, list of its
creditors, list of stockholders, list of assets, debt
payment schedule, and tax certificate.

According to the order, the firm should have submitted the
documents 20 days after January 20 after the firm's counsel
received the order.

Talsan is a wholesaler, retailer, distributor, importer and
exporter of all kinds of consumer goods and food items.
Talsan said it "suffered serious liquidity problems due to
its difficulty in collecting receivables from clients and
aggravated debt burdens, interests and charges as well as
in restructuring other financial obligations."
(BusinessWorld 24-Mar-1998)


S I N G A P O R E

PARKWAY HOLDINGS: Reports Sharply Lower Profits
-----------------------------------------------
Parkway Holdings suffered a 59 per cent plunge in 1997 net
profit to $19.7 million as the regional currency turmoil
and economic slowdown hurt its health-care business,
particularly in Indonesia.

It made a $23 million provision for foreign exchange
translation losses on loans, doubtful trade debts and the
falling value of its equity investments. The group incurred
a $26.7 million extraordinary loss due mainly to a fall in
the value of its investment in a Jakarta hospital and for
loans and guarantees to its hospital associate in Medan.

Group turnover for the year ended December rose 2 per cent
to $397.1 million. Parkway's performance was worse than
expected. Analysts polled by The Business Times had
expected net profit of around $25 million.

The group made a pre-tax profit of $97.3 million in
Singapore, but this was offset by losses of $9.2 million in
Indonesia, $745,000 in Malaysia and $222,000 in Australia.
Its health-care business suffered a 15 per cent decline in
pre-tax profit to $56.7 million.

Earnings per share plunged to 6.23 cents from 16 cents.    
Net tangible asset backing per share fell from $2.48 to
$2.79 previously. Parkway has proposed a final dividend of
three cents per share.  (The Straights Times 24-Mar-1998)


T H A I L A N D


TONGKAH HARBOUR: Taps Financial Professionals
---------------------------------------------
Tongkah Harbour Public Company Limited (SET:THL) announced
yesterday that it has appointed DS Prudential Management
Co.,Ltd. as its Financial Advisor. At this stage, the
Company said, the Financial Advisor and the Company's
auditor, Ernst & Young Office Ltd. are reviewing the
Operational Plan and Financial Projections of the Company.  
The plan will be proposed to the Board of Directors for
consideration and approval on 26 March 1998. The approved
reports will then be presented to the Company's
shareholders for consideration and approval at the
forthcoming Annual General Meeting of Shareholders which
will be held in April 1998.  (SET 24-Mar-1998)


QUALITY HOUSE: Recapitalization Plan on Track
---------------------------------------------
Quality Houses Plc (SET:QH) announced yesterday that the
company is still proceeding with its recapitalisation plan
which is in line with the shareholders' approval.  The
Company made this statement while denying "groundless"
reports that the company is planning to merge with Land and
House Plc (SET:LH).  (SET 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
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 * * *