---

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 30, 1998, Vol. 1, No. 28

                    Headlines

C H I N A   &   H O N G   K O N G  

CA PACIFIC: Potential Buyer Withdraws Proposal

I N D O N E S I A

J A P A N  

MITSUBISHI HEAVY: Scales Back Expansion Plan
SAKURA BANK: To Sell 400 Billion Yen of Bad Debt

K O R E A

CORYO SECURITIES: Trading Suspended by KSE
CROWN BAKERY: First in Series of Bakeries to Fail
DAEWOO GROUP: Daewoo Motor May Sell 50% Stake to GM
DONGSUH SECURITIES: Trading Suspended by KSE
KIA MOTORS: Kim Reiterates Comments on Insolvent Company
KIA MOTORS: Urges Samsung to Withdraw from Auto Business
KOREA FIRST BANK: Government to Sell Stake
KORYODANG: Latest Bakery to Fail
LG GROUP: Subsidiary Restructuring Announced
SEOUL BANK: Government to Sell Stake
SHILLA MYUNGGUA: May be Next Bakery in Bankruptcy

M A L A Y S I A

P H I L I P P I N E S

EVER GOTESCO: Details on Creditor Review

S I N G A P O R E

T H A I L A N D

JALAPRATHAN CEMENT: Lending Institutions Take Over
KRUNGTHAI FEEDMILL: Must Provide Delisting Information
SAHAVIRIYA OA: Appoints Firm in SET Dispute
THAI FISHERIES: Must Provide Delisting Information


C H I N A   &   H O N G   K O N G

CA PACIFIC: Potential Buyer Withdraws Proposal
----------------------------------------------
Collapsed CA Pacific Group (CPG) has given up trying to
find an investor to rescue the group after a potential
buyer, New Access Investments, pulled out of a proposal to
buy all outstanding shares of CPG's subsidiaries and
associated companies. The group will announce today details
and reasons why New Access Investments withdrew the
intended rescue package.

Legal proceedings to wind up CA Pacific Securities and CA
Pacific Finance were blocked on Wednesday when the High
Court heard of the proposal. But the group's parent,
Capital Asia, announced yesterday that New Access withdrew
the proposal on Wednesday afternoon, just one day after it
was put to the company.

A non-executive director at Capital Asia, Terence Tsang,
said: "New Access' proposal came in during the court
hearing, it was too late."

CPG official Toni Tong said New Access and provisional
liquidators failed to reach an agreement on terms of
conditions for the proposed acquisition. A source at
Capital Asia said the liquidators and New Access failed to
settle priorities such as which creditors would be repaid
the loans first.

At the extraordinary general meeting yesterday,
shareholders of Capital Asia passed a motion to dispose of
41.3 per cent of the company's shares to Capital Asia
chairman Alex Wong Ching-ping at a nominal price of one
dollar. The disposal was part of a deal to sell 25.28 per
cent interest of Capital Asia to Emperor at 11 cents a
share. Emperor will become Capital Asia's single largest
shareholder once the purchase is completed.

Ms Tong said a number of investors had expressed interest
in buying individual companies under CPG but New Access was
the only company to show "firm interest" to buy the group.
It was CPG's priority to find an investor to rescue the
group as a whole, she said.  (South China Morning Post
26-Mar-1998)


I N D O N E S I A




J A P A N  

MITSUBISHI HEAVY: Scales Back Expansion Plan
--------------------------------------------
Mitsubishi Heavy Industries Ltd. had scaled back its
expansion plan in a new mid-term business outline covering
fiscal 1998 through fiscal 2001, company sources said.
Japan's top heavy machinery maker aimed to post annual
sales of 3 trillion yen in the year ending March 2002,
compared with an earlier target of 3.3 trillion yen in the  
year ending March 2000. The Tokyo-based manufacturer had
given up hopes of topping its fiscal 1996 pretax profit
record of 192.7 billion yen in the years covered by the
plan, the sources said.

Annual capital investment would be cut by 15 billion yen  
from an original target to 65 billion yen. The changes were
attributed to the firm's worsening performance, following
the recent economic turmoil in Southeast Asia. The company
had originally planned to boost sales in Southeast Asia and
to procure cost-competitive materials from the region.

Under the new plan, the manufacturer stressed cost-cutting  
through stricter risk management. The plan called on the
company to expand production at its own facilities, rather
than purchasing from abroad. Mitsubishi Heavy will allocate
more staff to the design and sales departments to boost
competitiveness, while maintaining  its overall workforce
at 40,000. It hopes to improve productivity by 4-5% a year
through plant mechanisation. Its export ratio is targeted
to reach 35-40% of total corporate sales.  (Asia Pulse
27-Mar-1998)


SAKURA BANK: To Sell 400 Billion Yen of Bad Debt
------------------------------------------------
Japan's Sakura Bank Ltd. is to sell 400 billion yen
(3.1 billion dollars) of bad debt at the end of March to US
financial institutions, a company spokesman said Friday.   
The Japanese bank has agreed to sell the assets at an 85
percent discount to book value, resulting in the bank
carrying out additional bad debt write-offs of 60 billion
yen in the year to March, the spokesman said. It will be
the biggest sale of bad debt held by a Japanese financial
institution, the spokesman said.

"We have already started sale procedures," the spokesman
said. "But we cannot give details, or the names of the US
financial institutions."

Sakura Bank said that with the planned sale, together with
other write-offs, total bad debts will decline to 1.13
trillion yen by the end of March from 1.66 trillion yen at
the end of September.

Sakura Bank said it would sell about 1,000 loans to
insolvent borrowers and debt where interest repayment is
more than six months in arrears, in the form of so-called
loan participation, which does not cause fundamental
changes to the existing debtor and creditor structure.
(Agence France-Presse 27-Mar-1998)


K O R E A

CORYO SECURITIES: Trading Suspended by KSE
------------------------------------------
The Korea Stock Exchange (KSE) suspended the trading of
shares of Coryo Securities Co. and Dongsuh Securities Co.
yesterday on rumors that their licenses might be revoked.
Operations at the two brokerage houses were suspended last
December after they went insolvent due to massive debts.

The authorities have tried to normalize the two firms'
operations but there are no clear plans to revive the
troubled securities companies. The Ministry of Finance and
Economy refused to comment on the possible revocation of
licenses for Coryo and Dongsuh.
(Korea Times 27-Mar-1998)


CROWN BAKERY: First in Series of Bakeries to Fail
-------------------------------------------------
According to business sources, Crown Bakery, which filed
for court mediation Jan. 15, is continuing to wage a battle
with Paris Croissant for the top spot in the industry. To
maintain its position, Crown is still running its
approximately 600 franchised stores and has discarded items
with low popularity in a move to revamp its production
structure.

In particular, Crown cut the prices of its products by an
average of 16 percent last week, following a 50 percent
reduction in cake prices last month. Crown is also planning
various events to promote sales.

In response to Paris Croissant's move to freeze prices,
Crown Bakery is selling a loaf of bread for 1,300 won and
is trying to block the possible takeover of the bankrupt
Koryodang franchises by Paris Croissant.

Paris Croissant, which includes directly managed franchise
"Paris Croissant" and the chain "Paris Baguette," will
closely monitor the transition of Koryodang and Shilla
Myunggua.  (Korea Times 27-Mar-1998)


DAEWOO GROUP: Daewoo Motor May Sell 50% Stake to GM
---------------------------------------------------
The chairman of South Korea's Daewoo Group said Thursday he
might sell a 50 percent stake in his carmaking unit to
General Motors Corp. "We could sell up to 50 percent of
Daewoo Motor's equity to General Motors," said Kim Woo-
choong told a new conference arranged for foreign
journalists in a Seoul hotel.

"GM could participate in the company's management. But
Daewoo will still hold the ultimate managerial control," he
said. Kim said Daewoo was now in talks with GM over various
aspects of a strategic alliance which could include mutual
sourcing of parts and sales of each other's models. Kim was
unable to give further details about the deal with GM, but
Daewoo officials said the deal would be concluded before
September.

As part of a restructuring program, the group would reduce
its debt-to-equity ratio down to 120 percent by 2002, from
the current 400 percent, Chairman Kim said. By the end of
this year the ratio was projected to fall to 230 percent.

To improve its financial status, the group would seek
equity participation by foreign investors, capital
increases through rights issues and sell-offs of idle
assets.

"Establishment of consumer financing firms would be one
good example to reduce the debt-to-equity ratio," Kim said.    
He said the debt ratio of Korean companies was absurdly
high because they had to borrow money to finance
installment sales because there were no well-established
consumer financing firms. Kim also said the group would
sell back its 40 percent stake at Kazak Telecom, which is
valued at $150 million, and invest the proceeds to its
vehicle venture in Ukraine.

He said Daewoo Motor agreed early in March to produce its
mid-sized sedans and smaller cars in Ukraine from this year
in a joint venture with AvtoZAZ. Daewoo Motor would also
begin exporting its cars to the United States in August.

"We will be able to sell our cars in the United States
before the end of this year. We aim to sell 100,000 cars a
year," Kim said.

Kim Woo-choong, also the chairman of the Federation of
Korean Industries (FKI) representing the country's big
conglomerates, said this year's current account surplus
could reach as high as $50 billion.

Kim said the Daewoo Group earned 433.8 billion won ($310
million) in net profits in 1997, with Daewoo Motor alone
making a 260 billion won net profit. Daewoo Motors' sales
fared well last year thanks to the debut of three new
models -- Lanos sub-compact cars, Nubira compact cars and
Leganza mid-sized sedans.  (Reuters 26-Mar-1998)


DONGSUH SECURITIES: Trading Suspended by KSE
--------------------------------------------
The Korea Stock Exchange (KSE) suspended the trading of
shares of Coryo Securities Co. and Dongsuh Securities Co.
yesterday on rumors that their licenses might be revoked.
Operations at the two brokerage houses were suspended last
December after they went insolvent due to massive debts.

The authorities have tried to normalize the two firms'
operations but there are no clear plans to revive the
troubled securities companies. The Ministry of Finance and
Economy refused to comment on the possible revocation of
licenses for Coryo and Dongsuh.  (Korea Times 27-Mar-1998)


KIA MOTORS: Kim Reiterates Comments on Insolvent Company
--------------------------------------------------------
President Kim Dae-jung reiterated his belief in market
principles in handling insolvent automaker Kia while
putting the final decision in the hands of creditor banks
and major shareholders including U.S. auto giant Ford. The
comments came during his interview with Financial Times  
Thursday, presidential spokesman Park Jie-won said.

The government basically believes that the Kia problem has  
to be resolved through market principles, Park quoted the  
president as saying. But the ultimate decision makers are
major shareholders like Ford and creditor banks that lent
money to Kia, Kim said. One certain thing is that the
matter has to be solved quickly, the president said.

Kim referred to China-Taiwan role model in seeking economic  
cooperation with North Korea, stressing that political  
consideration should be separated from economic factors. He
said he is willing to promote cross-visits by businessmen
and expand investment if North Korea is as willing.
(Asia Pulse 27-Mar-1998)


KIA MOTORS: Urges Samsung to Withdraw from Auto Business
--------------------------------------------------------
South Korea's ailing Kia Motors Corp. on Friday struck back
at Samsung business group, urging it to fold up its infant
automaking business for the sake of the country's economic
survival. In a report published on Friday, the Kia Economic
Institute said the country's auto industry would be
"doomed" if Samsung Motors Inc. turns competition in
passenger-car manufacturing into a four-party struggle.

Referring to Samsung's undeclared bid to take over Kia
Motors, the institute said Samsung's acquisition of Kia
Motors would end up keeping afloat Samsung Motors which it
said should be let go, calling it a "marginal firm."

"The merged company (of Kia Motors and Samsung Motors)
would become insolvent due to Samsung's excessive
investment cost and debts," the report said.

"It would also run counter to the new government's policy
to support corporate restructuring around core business,"
it said. The report came as the giant Samsung group is
reportedly gearing up to openly enter the fray to take over
Kia Motors after rival Hyundai Group staked its claim. Kia
also reacted negatively to Hyundai's takeover bid.

"Benefits from synergy and the economies of scale arising
from Hyundai's takeover would be negligible because of
overlapping businesses (of Kia and Hyundai)," it said.

Paul Drenskow, who is in charge of Asian operations for
Ford Motor Co., has also said Ford would object to a
Hyundai take-over of Kia. Ford has the largest stake of 17
percent in Kia, including equity held by its Japanese
affiliate Mazda.

The best alternative is to have Kia Motors put back on its
feet, the report said, noting Kia has unveiled its "second-
stage survival plan" including a cut from 700,000 to
600,000 units in annual auto output and a relocation of its
production facilities.

Hyundai and Kia along with Daewoo are the country's big
three auto makers, but Samsung entered the market late last
year after spurning predictions of a market glut crippling
the industry.  (Agence France-Presse 27-Mar-1998)


KOREA FIRST BANK: Government to Sell Stake
------------------------------------------
The South Korean government plans to sell its stakes in
Korea First Bank and Seoul Bank in July or August, some
three to four months ahead of schedule. The government will
soon name a foreign firm to take charge of accounting of
these two banks and in-house investigation is expected to
take place starting next month, according to sources at the
Financial Supervisory Commission. Coopers & Lybrand L.L.P.,
Deloitte and Touche, Arthur Anderson & Co., and KPMG
International among the U.S. big six accounting firms are
reportedly competing to win the order to review the two
troubled banks.

The government will also appoint an underwriter bank in  
charge of privatization of the two banks by mid-April so
that the bank can work together with the accounting firm.
The underwriting bank needs to know exactly what the banks  
are worth in order to sell their stakes.

The government sent out application forms to leading  
investment banks like JP Morgan, CS First Boston, Merrill  
Lynch, Union Bank of Switzerland, Morgan Stanley, and
Goldman Sachs to name one of them as an underwriter. The
bank and accounting firm will be able to come up with the
final price tag of the two troubled banks by June at the  
latest since investigation takes 10 to 12 weeks.

The government said it hopes the banks will be priced as  
high as possible to come away with a profit. Once their
worth is out, the underwriter will stage a road show to
seek investors sometime in July. The government, therefore,
will be able to hold the first international bidding on
sales of these two banks by late July.

It is most likely that a number of foreign banks will form  
a consortium with domestic capital to take over the banks,  
sources close to the situation said.  (Asia Pulse
27-Mar-1998)


KORYODANG: Latest Bakery to Fail
--------------------------------
The specter of chain bankruptcies is now haunting the
entire bakery industry as the third-largest maker Koryodang
followed Crown Bakery's demise. Emerging as the next
possible victim is fourth-largest bakery Shilla Myunggua,
which is reportedly suffering from serious financial
difficulties. To avoid insolvency, other makers are mapping
out various survival plans such as reducing product
prices and strengthening control on their franchises.
(Korea Times 27-Mar-1998)


LG GROUP: Subsidiary Restructuring Announced
--------------------------------------------
The LG Group will dismantle its current structure of 50
closely interlinked companies from Apr. 1 and turn them
into independent corporations centering around their own
respective boards of directors. A senior group official
said in a meeting with the press that a planning and
coordination office under the direct control of the
chairman will be closed down permanently in response to
demands by the new government.

Group vice president Kang Yoo-sik said a structuring
headquarters will be newly established on a temporary basis
to oversee the process of merging and selling off business
projects and subsidiaries.

"The 'dismantling' of the group structure is designed to
provide autonomous management to all subsidiaries, allowing
them to focus more on open management and merits based on
performance," he explained.

Current group chairman Koo Bon-moo has been appointed
chairman and chief executive of flagship companies LG
Electronics and LG Chemical and sits as a member of the
board of directors of two unlisted subsidiaries.

Once the changes are implemented Apr. 1, Koo will no longer
have the authority to appoint heads of subsidiaries as all
such responsibilities fall under the direct control of the
respective board of directors. Similarly, the board of
directors of all subsidiaries will be able to decide on
management and investment issues without giving specific
consideration to their implications for other subsidiaries.

LG's move is the first of its kind and is seen as a
reflection of its determination to improve its financial
structure since most subsidiaries are intertwined through
cross repayment guarantees. While it has the appearance of
being largely symbolic, Kang insisted that all elements
reminiscent of the group identity are being eliminated
through a number of measures, including the recruitment of
out-of-company directors.

"All subsidiaries will be operated based on the decisions
of an independent board of directors and not strategic
directions adopted by the group as whole as had been in the
past," Kang emphasized.  (Korea Times 26-Mar-1998)


SEOUL BANK: Government to Sell Stake
------------------------------------
The South Korean government plans to sell its stakes in
Korea First Bank and Seoul Bank in July or August, some
three to four months ahead of schedule. The government will
soon name a foreign firm to take charge of accounting of
these two banks and in-house investigation is expected to
take place starting next month, according to sources at the
Financial Supervisory Commission. Coopers & Lybrand L.L.P.,
Deloitte and Touche, Arthur Anderson & Co., and KPMG
International among the U.S. big six accounting firms are
reportedly competing to win the order to review the two
troubled banks.

The government will also appoint an underwriter bank in  
charge of privatization of the two banks by mid-April so
that the bank can work together with the accounting firm.
The underwriting bank needs to know exactly what the banks  
are worth in order to sell their stakes.

The government sent out application forms to leading  
investment banks like JP Morgan, CS First Boston, Merrill  
Lynch, Union Bank of Switzerland, Morgan Stanley, and
Goldman Sachs to name one of them as an underwriter. The
bank and accounting firm will be able to come up with the
final price tag of the two troubled banks by June at the  
latest since investigation takes 10 to 12 weeks.

The government said it hopes the banks will be priced as  
high as possible to come away with a profit. Once their
worth is out, the underwriter will stage a road show to
seek investors sometime in July. The government, therefore,
will be able to hold the first international bidding on
sales of these two banks by late July.

It is most likely that a number of foreign banks will form  
a consortium with domestic capital to take over the banks,  
sources close to the situation said.
(Asia Pulse 27-Mar-1998)


SHILLA MYUNGGUA: May be Next Bakery in Bankruptcy
-------------------------------------------------
The specter of chain bankruptcies is now haunting the
entire bakery industry as the third-largest maker Koryodang
followed Crown Bakery's demise. Emerging as the next
possible victim is fourth-largest bakery Shilla Myunggua,
which is reportedly suffering from serious financial
difficulties. To avoid insolvency, other makers are mapping
out various survival plans such as reducing product
prices and strengthening control on their franchises.
(Korea Times 27-Mar-1998)


M A L A Y S I A



P H I L I P P I N E S

EVER GOTESCO: Details on Creditor Review
----------------------------------------
The 29-member group of creditors of the Ever Gotesco Group
of Companies has identified the banks which will lead the
review of the structuring and settlement options for the
conglomerate's four major business units. Appointed as lead
banks for the joint and concurrent studies are Philippine
National Bank (PNB) for Ever Gotesco Holdings and
resources, Inc. Asian Bank Corp. for Gotesco Properties,
Inc., and United Coconut Planters Bank (UCPB) for Gotesco
Land, Inc. and the Ever Group of Stores, Far East Bank and
Trust Co senior vice president Ricardo Lazatin said.

UCPB senior vice president Angelo V. Manahan, the group's  
officials spokesman, also disclosed that the lead banks and  
their teams are working on a 90-day timetable to complete  
their studies. "During our last meetings, all the attendees  
were polled and a consensus was reached that we would give
the study teams the assistance and support needed for them
to complete their report within the schedule agreed on," he
said.  (Asia Pulse 27-Mar-1998)


S I N G A P O R E



T H A I L A N D

JALAPRATHAN CEMENT: Lending Institutions Take Over
--------------------------------------------------
Twenty Thai lending institutions have taken over financial
administration of loss-ridden Jalaprathan Cement Plc (JCC)
in a bid to revive the company. The commercial banks and
finance companies are all creditors of JCC. Among them,
Bangkok Bank of Commerce, Siam Commercial Bank, Siam City
Bank, Nakornthon Bank and the Industrial Finance
Corporation of Thailand are the largest lenders to the
ailing firm.

A source from one of the banks said that of JCC's
liabilities totalling five billion baht, syndicated loans
organised by the five banks made up 3.4 billion baht. The
BBC was owed about one billion baht, and the other four
banks about 600 million baht each. JCC's liquidity has been
very tight for several years, with consecutive losses
recorded for the last two years. Loans went into
shareholders' pockets rather than improving productivity,
the source claimed.

Two years ago, JCC failed to repay loan principal and
interest to any of its creditors. Observers then warned
that the company seriously risked collapse if creditors did
not intervene to restructure its debt and revive its
business. As part of the takeover, lending banks now have
six representatives on JCC's board of directors. They will
manage all JCC's financial activities including revenue and
spending. A group of creditors has also provided 600
million baht for JCC to improve its working capital and
plant.

The new management team is also looking for foreign
investment in JCC. Ciments Francais Co, the fourth-largest
cement producer in France, has appointed Price Waterhouse
to assess the merits of buying a 27% stake (20.4 million
new shares) in JCC.

Last year, JCC shareholders agreed to raise registered
capital to 850 million baht from 546 million baht by
issuing 30.4 million new shares, 10.4 million shares of
which would be for sale through private placement, and the
remaining 10 million shares allocated for non-secured
warrants issued together with the debentures to be sold
abroad.

If Ciments Francais agrees to take the 27% stake, it will
displace Chachoengsao MP Suchart Tancharoen, who currently
has 18%, as the biggest shareholder.

JCC is one of several Thai companies entangled in the
Bangkok Bank of Commerce scandal, as a group of speculators
led by former BBC treasury adviser Rakesh Saxena and Saudi
Arabian arms dealer Adnan Khashoggi borrowed from the BBC
to buy JCC shares.  (Bangkok Post 27-Mar-1998)


KRUNGTHAI FEEDMILL: Must Provide Delisting Information
------------------------------------------------------
Thai Fisheries Plc (T-Fish) and Krungthai Feedmill Plc (KT)
must make their accounting and financial information
transparent before their applications for delisting can be
approved, the Stock Exchange of Thailand (SET) has ordered.
Meanwhile, KT claimed the company has to quit the bourse as
it has shouldered a huge foreign exchange loss. Singh said
the exchange has yet to be informed of the exact extent of
the loss. To clear the suspicions, the SET has ordered the
two companies to arrange for a due diligence so that the
public has a clearer picture of their financial positions
and their delisting reasons.

The companies can hire any financial companies to undertake
the due diligence and they must report the results to the
exchange and their shareholders. Both companies asked for
their delisting early this month and the matter was
considered at yesterday's meeting of the SET board of
directors.

They submitted their applications as over 20 listed
companies had been forced to leave the bourse due to poor
financial performances over the past year. As stock
analysts see it, delisting has been proven unfair to minor
shareholders who are forced to choose whether to sell their
shares at the price specified by the withdrawing companies
or keep their investments on a long-term basis.
(The Nation 27-Mar-1998)


SAHAVIRIYA OA: Appoints Firm in SET Dispute
-------------------------------------------
Sahaviriya OA Plc, an information technology provider, has
appointed Seamico Securities Plc to resolve differences
with the Stock Exchange of Thailand. The SET said early
this month that the company had not kept its net tangible
assets at no less than 50% of its paid-up capital, and was
therefore at risk of being delisted. Seamico will help the
company to reorganise its funding and debt structure so it
complies with SET regulations.

Professor Thienchai Srivichit, Sahaviriya OA's board
chairman, said foreign exchange losses, delayed payments
from debtors and a general decline in sales because of the
economic slump had contributed to the company's
disappointing performance.

"We have been negotiating with our creditors for some time
and the support of our creditors has been very encouraging.
Although all options are currently being considered,
including the injection of new equity, refinancing and
rescheduling of debt and asset sales, the management has
not yet finalised the overall strategy," he said in a
statement.

"We believe the company will survive current short-term
difficulties and continue to maintain its market position.
The recent strengthening of the baht is encouraging for
us," he said.
(Bangkok Post 27-Mar-1998)


THAI FISHERIES: Must Provide Delisting Information
--------------------------------------------------
Thai Fisheries Plc (T-Fish) and Krungthai Feedmill Plc (KT)
must make their accounting and financial information
transparent before their applications for delisting can be
approved, the Stock Exchange of Thailand (SET) has ordered.
"T-Fish reasoned that the company is being hurt by its
foreign debtors' failure to settle their accounts," Singh
Tangtatswas, the SET president, said.

According to Singh, the reason is being treated with
suspicion as up to 75 per cent of the unpaid money is owed
by only one customer. To clear the suspicions, the SET has
ordered the two companies to arrange for a due diligence so
that the public has a clearer picture of their financial
positions and their delisting reasons. The companies can
hire any financial companies to undertake the due diligence
and they must report the results to the exchange and their
shareholders.

Cathay Capital Co Ltd, which is T-Fish's independent
financial adviser, has also been ordered to investigate the
doubtful transactions between the listed company and its
major debtor. The securities company needs to come up with
a report as to whether the transactions were made under
"normal business conditions".

Both companies asked for their delisting early this month
and the matter was considered at yesterday's meeting of the
SET board of directors. They submitted their applications
as over 20 listed companies had been forced to leave the
bourse due to poor financial performances over the past
year. As stock analysts see it, delisting has been proven
unfair to minor shareholders who are forced to choose
whether to sell their shares at the price specified by the
withdrawing companies or keep their investments on a long-
term basis.

On March 5, T-Fish submitted the delisting proposal to the
exchange, announcing it will buy back shares held by minor
shareholders at Bt1.20 apiece. KT made its proposal on
March 13, offering a tender price of Bt2 per share.
(The Nation 27-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 * * *