TCRAP_Public/980331.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 31, 1998, Vol. 1, No. 29

                    Headlines


C H I N A   &   H O N G   K O N G

ARTFIELD GROUP: Shareholders Receive Buy-Out Proposals
CA PACIFIC: Liquidators Defend Their Role
CAPITAL ASIA: New Access Backs Out; Old Deal Moves Forward
CHEUK NANG: 1997 Operating Results
GOLDEN HARVEST: 1997 Operating Results
LAI SUN GROUP: Company Responds to News About Director Lim
LEADING SPIRIT: Reports Securities Losses
KOSONIC: Can't Complete 1997 Financial Reports
MANDARIN RESOURCES: Liquidator to Announce Financial Status
MANSION HOLDINGS: Deson Development Withdraws Rescue Plan
MANSION HOLDINGS: Strikes Restructuring Deal with Symphony
ORIENT TELECOM: Court Meetings Scheduled for April 21
PALADIN LIMITED: 1997 Operating Results Announcd
RECOR HOLDINGS: Restructuring Final; Shares Resume Trading
TAIWAN INDEX: 1997 Operating Results
YAOHAN INTERNATIONAL: Third Quarter Operating Results


I N D O N E S I A



J A P A N  

ASAHI BANK: S&P Lowers Long-Term Ratings to BBB+
YAMAICHI SECURITIES: Will Close Tomorrow


K O R E A

DOOSAN GROUP: Foreign Investments to Ease Restructuring
HANBO GROUP: Prosecution Recommends Six-Year Term
KIA MOTORS: Daewoo Chairman Interested in Resolution
KIA MOTORS: Hyundai May Use Foreign Investment
SAMYANG MERCHANT BANK: Ministry Orders Closing
TAEGU MERCHANT BANK: Ministry Orders Closing


M A L A Y S I A



P H I L I P P I N E S

MIDAS DIVERSIFIED: Agreement with Creditor Banks
PACIFIC LENDERS: SET Sets Deadline on Requirements


S I N G A P O R E



T H A I L A N D

SIAM STRIP MILL: Itochu May Buy Shares




C H I N A   &   H O N G   K O N G

ARTFIELD GROUP: Shareholders Receive Buy-Out Proposals
------------------------------------------------------
Artfield Group Limited disclosed last week that Messrs. Ip
Yiu Tung, Ho Kwan Ching, Ip Chun Keung, Yip Chi Wai and
Kwan Wai Hung, the major shareholders of the Company who
together hold approximately 71.7% of the issued share
capital of the Company, that they have been approached
separately by two independent third parties in respect of
proposed acquisitions of over 50% of the issued share
capital of the Company which may result in a change in
control of the Company and trigger a general offer to all
shareholders of the Company.  According to information
available to the Company, these two potential purchasers of
shares in the Company, who are unrelated to each other,
have businesses in the People's Republic of China (the
"PRC") but are not related to any state-owned corporation
in the PRC. Preliminary  negotiations on the terms of the
proposal, including the number of shares and the price
range (which has not been fixed), have commenced recently
and are in progress. However no legal binding agreement has
been reached and no financial adviser has been appointed by
the Company. (SEHK 25-Mar-1998)


CA PACIFIC: Liquidators Defend Their Role
-----------------------------------------
Provisional liquidators for CA Pacific Finance and CA
Pacific Securities on Saturday moved to defend their role
in a failed $150 million cash rescue bid for the companies.
Coopers and Lybrand partners Denis Ho and Jan Blaauw said
they remained open to any viable rescue proposal put
forward, according to their statement issued over the
weekend. This followed the withdrawal of the proposal last
week and allegations made by Alex Wong Ching-ping, chairman
of the CA Pacific Group, which controlled the collapsed
companies, that the provisional liquidators wanted to earn
more money from the liquidation process by delaying the
rescue plan (TCRAP 30-Mar-1998).

Mr Ho and Mr Blaauw said they were first approached by
representatives of the unidentified rescuers on January 27.
Each request from the representatives was dealt with "as a
matter of urgency and as positively as we could in the
circumstances", they said. They only received a firm
proposal in writing on Tuesday afternoon, just one day
before the High Court hearing of petitions to wind up the
companies. They responded in writing on the same day,
saying that the proposal failed to address the issues that
had been raised.

They said they had explained to the representatives complex
legal and practical issues that had to be addressed before
a viable offer could be formulated but would not publicly
divulge what the issues were. Mr Ho and Mr Blaauw said they
had laid down certain ground rules in dealing with the
proposed rescuers which were not entirely followed. While
agreeing to provide information regarding the formulation
of the rescue plan, they asked the representatives to keep
the information and discussions confidential until they had
received the proposal and responded to it.

They also asked the proposed rescuers to bear the
additional costs of providing the information so as not to
reduce the monies available to creditors.

They said: "The representatives made only very limited
requests for information. This caused us concern as we
would have expected more requests to have been made in
connection with a viable proposal."

The discussions also "do not appear to have been kept
confidential" as related reports have appeared in the media
from time to time, they said. A court hearing on the case
continues today.
(South China Morning Post 30-Mar-1998)


CAPITAL ASIA: New Access Backs Out; Old Deal Moves Forward
----------------------------------------------------------
Capital Asia Limited reported recent developments to
Shareholders at an Extraordinary General Meeting held on
26th March, 1998:

    * On 24th March, 1998, C.A. Pacific Group Limited
("CAPG") received a proposal (the "Proposal") from New
Access Investments Limited ("New Access") regarding the
proposed acquisition of all the outstanding shares of the
subsidiaries and associated companies owned by CAPG,
including C.A. Pacific Finance Limited (in provisional
liquidation) ("CAP Finance") and C.A. Pacific Securities
Limited (in provisional liquidation) ("CAP Securities").

    * On 25th March, 1998, New Access withdrew the
Proposal.

    * The Board considers that it is in the best interests
of the Company and the Shareholders to proceed with the
EGM.  

Pursuant to the conditional agreement dated 22nd January,
1998 (the "Agreement"), as supplemented by a memorandum of
agreement dated 26th February, 1998 and a supplemental
memorandum of agreement dated 6th March, 1998 in respect of
the acquisition of 25.28% equity interest of the Company by
Goldstream Group Limited ("GGL") and the disposal (the
"Disposal") by the Company of 5,509,400 shares in CAPG to
Mr. Alex Wong Ching Ping, director of the Company, at the
consideration of HK$1, an extraordinary general meeting of
the Company ("EGM") will be convened on 26th March, 1998 at
10:00 a.m. to consider the Disposal.

On 24th March, 1998, the Company was informed by CAPG that
it had received a proposal submitted to the provisional
liquidators ("PL") of CAP Securities and CAP Finance* by
Messrs. Goodman Phillips & Vineberg ("GPV"), solicitors,
regarding the acquisition by one of their clients, New
Access, of all the outstanding shares of the subsidiaries
and associated companies owned by CAPG.

In the afternoon of 25th March, 1998, the Company was
informed by CAPG that it had received from New Access a
letter which stated that, after receiving a letter from
Herbert Smith, solicitors to the PL, New Access would
reconsider its position and revert to CAPG in due course.

CAPG sent a request to GPV for clarification of New
Access's intention regarding the Proposal. Shortly
afterwards, CAPG received a letter from GPV confirming
their client's intention to withdraw the Proposal.

The Proposal and the above development have been considered
by Somerley Limited ("Somerley"), the independent adviser
to the independent board committee of the Company (the
"Independent Board Committee") which advises the
Shareholders regarding the Disposal.  It is one of the
conditions of the Agreement that the Disposal is to be
completed by 31st March, 1998. GGL has expressed its
intention that it is not prepared to amend the Agreement to
extend the completion of the Disposal beyond 31st March,
1998.

In view of the withdrawal of the Proposal from New Access,
and since the terms of the Disposal remain unchanged.  
Somerley has informed the Independent Board Committee that
their opinion and recommendation as regards the terms of
the Disposal as being fair and resonable set out in their
letter dated 10th March, 1998 to the Independent Board
Committee remains unchanged.  The Independent Board
Committee concurs with the view of Somerley and their
recommendation to the independent Shareholders to vote in
favour of the resolution to approve the Disposal at the EGM
also remains unchanged. (SEHK 27-Mar-1998)


CHEUK NANG: 1997 Operating Results
----------------------------------
Cheuk Nang Properties (Holdings) Limited an HK$436 million
net loss on turnover of HK$19.8 billion for the period from
January 7, 1997 through December 31, 1997.  This compares
to an HK$23.8 billion profit on turnover of HK$49.5 billion
for the corresponding 1996 period. (SEHK 26-Mar-1998)


GOLDEN HARVEST: 1997 Operating Results
--------------------------------------
Golden Harvest Entertainment (Holdings) Limited reported an
HK$53.6 million net loss on turnover of HK$109 million for
the period from January 7, 1997 through December 31, 1997.  
This compares to an HK$5.2 million profit on turnover of
HK$298 million for the corresponding 1996 period. (SEHK 26-
Mar-1998)


LAI SUN GROUP: Company Responds to News About Director Lim
----------------------------------------------------------
The several boards of directors of Lai Sun Group (including
Lai Sun Garment (International) Limited, Lai Sun
Development Company Limited, Lai Sun Hotels International
Limited, Crocodile Garments Limited, Furama Hotel
Enterprises Limited) announced that the companies were
notified that Taiwan authorities have decided to raise
charges against Mr. Lim Por Yen, who is a director of the
respective companies, in relation  to investigations late
last year alleging the involvement of Mr. Lim in a private
property transaction in Taiwan.

The  respective  boards  of directors regret that Mr. Lim
has not as yet  relieved himself from such investigations
despite the invaluable efforts  to  date  by his legal
advisers. The respective boards hope that  the  matter  
will  be settled favourably in the near future, however,  
in  the meantime, wish to re-iterate that this matter will
not  have  any  material effect on the day-to-day
operations of the respective listed companies. (SEHK 26-
Mar-1998)


LEADING SPIRIT: Reports Securities Losses
-----------------------------------------
Consumer appliance maker Leading Spirit (Holdings) lost
$402.58 million through securities trading during the six
months to December 31. The hit on share trading sent the
group tumbling to a net loss of $278.12 million for the
same period. According to interim figures released
yesterday, the company made a total provision of $529.43
million for trading securities. This was calculated on the
lower value of the investment cost and market value at the
balance date or the realised net value.

However, this was partially offset by a profit of $126.85
million from earlier share trading. The company said its
board decided on January 20 to stop securities trading and
liquidated the portfolio. It still owns 12 million shares -
with a market value of $5.76 million - of an unidentified
Hong Kong-listed company.

Leading Spirit began securities trading in the first
quarter of last year, but was battered by heavy losses
among its red-chip portfolio after buying them at near
their summer highs.

The losses follow a flood of High Court writs against its
chairman Wong Shi-ling for unpaid stock margin loans that
are thought to have topped $900 million. Mr Wong was a
central figure in the recent collapse of CA Pacific Finance
and liquidity crisis at Cheerful Holdings after failing to
repay margin loans collateralised by Leading Spirit shares.
The stock was suspended at the company's request.

The group's turnover surged 90 per cent to $2.22 billion,
bolstered by $449.95 million from securities trading.
Without the securities trading income, its turnover would
have risen only 10 per cent.

The company said its television sales had more than doubled
to 474,000 during the period, with the electrical appliance
and electronic product division bringing in a pre-tax
operating profit of $152 million.

The motorcycle component trading division generated pre-tax
profit of $78 million. The company said it would raise
funds for new investment projects.
(South China Morning Post 30-Mar-1998)


KOSONIC: Can't Complete 1997 Financial Reports
----------------------------------------------
The board of directors of Kosonic International Holdings
Limited said last week that due to the shortage of staff
which is arising from its existing financial liquidity
problem, the Company is unable to announce its audited
financial results for the year ended 30th September, 1997
on or before 28th February, 1998.  The Company is
finalising its accounting records and is discussing with
its auditors to determine a practical time schedule for the
announcement of the audited financial results for the year
ended 30th September, 1997. (SEHK 26-Mar-1998)


MANDARIN RESOURCES: Liquidator to Announce Financial Status
-----------------------------------------------------------
The Joint Provisional Liquidator of Mandarin Resources
Corporation Limited announced that he intends to approve
and announce the interim results of the Company for the six
months ended 31/12/97 on 31/3/98. (SEHK 26-Mar-1998)


MANSION HOLDINGS: Deson Development Withdraws Rescue Plan
---------------------------------------------------------
Deson Development International Holdings Limited announced
Friday that it formally withdrew its rescue plan described
in March 1998 for for Mansion Holdings Limited.  Deson said
that it withdrew its Proposal because it had "not received
any  firm  response  from either Mansion, its lending
banks, or its financial advisers with regard to their
decision as to which of the rescue plans Mansion will
definitely be pursuing.  As time is of the essence given
the circumstances and a considerable period of time has
elapsed since the submission of the Proposal, Deson
believes that it is in Deson's best interest to withdraw
its Proposal at this time.  (SEHK 26-Mar-1998)


MANSION HOLDINGS: Strikes Restructuring Deal with Symphony
----------------------------------------------------------
The respective boards of directors of Mansion Holdings
Limited ("Mansion", and together with its subsidiaries,    
the "Mansion Group") and Symphony Holdings Limited
("Symphony", and together with its subsidiaries, the
"Symphony Group") announce that a legally binding heads of
agreement (the "Heads of Agreement") was entered into on
20th March, 1998 between Mansion, Chan Ting Chuen ("Mr.
Chan"), Search Asia Pacific Limited ("Search") and Symphony
(Mr. Chan, Search and Symphony together are referred to as
the "Investors") regarding a proposed financial
restructuring (the "Restructuring Proposal") of the Mansion
Group.  The Restructuring Proposal is subject, among other
things, to the Investors being satisfied with the results
of their due diligence review on the Mansion Group and
relevant parties (including all banks of Mansion or their
representatives) entering into the final agreements (the
"Final Agreements").  The Investors have up to 31st March,
1998 to complete their due diligence review on the Mansion
Group.  The Final Agreements will be executed after the due
diligence review is completed and if and only if the
Investors are satisfied with the result of the due
diligence review.  Somerley Limited is the financial
adviser to Mansion.

    SUMMARY OF THE RESTRUCTURING PROPOSAL

The Restructuring Proposal of Mansion as proposed by the
Investors will involve, among other things:

   (i) capital reduction;

  (ii) bonus issue of warrants;

(iii) subscription of new shares of Mansion by Mr. Chan or
       his nominees;

  (iv) rights issue;

   (v) property acquisition and

  (vi) restructuring of all bank indebtedness owed by
       the Mansion Group to its bank group.

    Effects of the Restructuring Proposal:

   (i) The Investors will acquire statutory control of
       Mansion;

  (ii) the liquidity problem of the Mansion Group
       will be resolved and the financial position of
       the Mansion Group is expected to be restored to
       positive net asset position;

(iii) the core business of the Mansion Group
       will be maintained and will be expanded into the
       area of provision of fire specialist services
       including supply and retailing of fire prevention
       products, provision of fire system maintenance
       service and fire insurance; and

  (iv) the listed status of Mansion will be maintained.

                      THE INVESTORS

    Mr. Chan has more than 25 years' experience in
    the construction industry and property
    development.  He is the Chairman of Symphony and
    a private company, Citylink Holdings Limited,
    which is engaged principally in property
    investment and development in Hong Kong.

    Search is a private investment holding company,
    62% of  the issued share capital of which is
    owned by family trusts or companies associated
    with Mr. Robert Miller, a substantial shareholder
    in the Duty Free Shoppers Group.  The Duty Free
    Shoppers Group is an international chain of
    retail stores specialising in the retailing of
    duty free goods.  Mr. Robert Miller is the
    Chairman of the Search group of companies which
    is an investment group based in Hong Kong with
    diversified interests throughout the world
    including but not limited to real estate
    investment and development, shipping,
    communication and manufacturing.  Mr. Sze Sun
    Sun, Tony ("Mr. Sze"), Mr. Wong Mo Wah, Gordon
    and Mr. Chu Hon Pong, all being directors of
    Symphony, have a respective 18%, 10% and 10%
    interest in Search.  Search is a substantial
    shareholder of Symphony holding approximately
    29.1% of the issued share capital of Symphony.

    The Symphony Group is principally engaged in the
    manufacturing and trading of footwear, property
    and investment holding.  Symphony is a company
    listed on the Stock Exchange of Hong Kong Limited
    (the "Stock Exchange"). The substantial
    shareholders of Symphony include Search and Ever
    First Investments Limited ("Ever First").  Ever
    First is interested in approximately 30.0% of the
    issued share capital of Symphony. Mr. Chan and
    Mr. Sze are together interested in 48.82% of the
    issued share capital of Ever First, with each of
    them holding 24.41% interest.

    The Investors are independent third parties not
    connected with the chief executive, directors or
    substantial shareholders of Mansion or its
    subsidiaries or their respective associates. The
    Investors and parties acting in concert with them
    do not have any shareholding interest in Mansion
    at present.

               THE RESTRUCTURING PROPOSAL

    I.   Capital Reduction

    To reflect the substantial loss in its paid up
    capital, Mansion will reduce its capital (the
    "Capital Reduction").  The Capital Reduction will
    be effected by a scheme of arrangement of Mansion
    pursuant to Section 46 of the Bermuda Companies
    Act, subject, among other things, to approval of
    the shareholders of Mansion (the "Shareholders")
    by a special resolution at a special general meeting.

    Based on 503,633,400 shares of HK$0.10 each (the
    "Shares") in issue as at 23rd March, 1998 and on
    the basis of 4 Shares cancelled for every 5
    existing Shares, a total of 402,906,720 existing
    Shares will be cancelled.  The issued share
    capital of the Mansion will become 100,726,680
    Shares or approximately HK$10.07 million after
    the Capital Reduction.

    II.   Bonus  Warrants to Shareholders

    The purpose of granting the 100,726,680 warrants
    (the "Shareholder Warrants") to the Shareholders
    is to give them an opportunity to participate in
    the recovery and future growth of Mansion at the
    same entry price per Share that will be paid by
    the Investors under the subscription as
    described below.

    Shareholders will be issued by way of bonus one
    Shareholder Warrant for every Share held by them
    immediately after the Capital Reduction.
    Accordingly, based on 100,726,680 Shares to be in
    issue after the Capital Reduction, a total of
    100,726,680 Shareholder Warrants will be issued.

    The Shareholder Warrants will carry rights to
    subscribe in cash for new Shares at the initial
    subscription price of HK$0.10 per Share, subject
    to adjustment, at any time for a period of three
    years after the date of issue.  Accordingly, full
    exercise of the Shareholder Warrants at the
    initial subscription price of HK$0.10 per Share
    will result in the issue of 100,726,680 new Shares.

    The subscription price of any outstanding
    Shareholder Warrants will be subject to usual
    adjustments in the event of any changes in the
    capital of Mansion during the subscription period
    of the Shareholder Warrants.

    III.   The Subscription

    A total of 880 million new Shares (the
    "Subscription Shares") will be issued to Mr. Chan
    or his nominees for a total consideration of
    HK$88 million in cash at the issue price of
    HK$0.10 per Share (the "Subscription").  The
    Subscription will be completed after the Capital
    Reduction having become effective. Save for
    entitlements to the rights issue as described
    below,  the Subscription Shares will rank pari
    passu with  the Shares then in issue after the
    Capital Reduction.

    IV.   The Rights Issue

    Mansion will offer not less than 805,813,440 new
    shares (the "Rights Shares") by way of rights
    (the "Rights Issue") at a price of HK$0.10 per
    Share to Shareholders on the basis of 8 Rights
    Shares for every Share held on the date
    immediately after the Capital Reduction becomes
    effective.   The purpose of the Rights Issue is
    to allow existing Shareholders to participate in
    the immediate recapitalisation of Mansion at the
    time of the Restructuring Proposal and at the
    same price per Share as for the Investors.

    Search will underwrite the entire subscription
    amount of the Rights Issue.  The underwriting
    obligation of Search will not be subject to
    force majeure.

    The Investors intend to maintain the listing
    status of Mansion on the Stock Exchange.  If less
    than 25% of the Shares are held by the public at
    the close of the Rights Issue, the Investors will
    jointly and severally undertake to the Stock
    Exchange to take appropriate steps to ensure that
    not less than 25% of the Shares will be in the
    hands of the public upon completion of the
    Restructuring Proposal.

    V.   The Property Acquisition

    It is proposed that the Mansion Group will
    acquire the property (the "Property Acquisition")
    situated at Shop A on Ground Floor of Citicorp
    Centre, 18 Whitfield Road, Hong Kong (the
    "Property") from Symphony at the open market
    value to be appraised by an independent
    professional valuer.  The directors of Symphony
    estimate that the current market value of the
    Property is about HK$68 million.  The acquisition
    consideration (subject to adjustment) will be
    satisfied on a dollar for dollar basis by the
    allotment and issue of new Shares (the
    "Consideration Shares") credited as fully paid at
    HK$0.10 per Share to Symphony.  On the above
    basis, 680 million Consideration Shares will be
    issued to Symphony as consideration.

    The Property has a net floor area of
    approximately 7,853 sq.ft. and is currently
    leased to an independent third party for a
    monthly rental of HK$329,580, exclusive of rates
    and other charges for a three year term
    commencing on 1st October, 1995.

    The Property Acquisition will strengthen the
    asset base and enhance the quality of fixed
    assets held by the Mansion Group.  The rental
    income will provide a source of recurring income
    to the Mansion Group.

    VI.   Restructuring of the Bank Loans

    It is proposed that all the bank indebtedness
    (including the corporate guarantees given by
    Mansion) owed by the Mansion Group to the bank
    group (the "Bank Group") as at the date of
    completion of the Restructuring Proposal (the
    "Bank Loans") will be fully released and
    discharged  in consideration of the following:-

    1.   Mansion will issue 2-year 8% unsecured
    convertible loan notes (the "Notes") in the
    aggregate nominal value equal to 5% of the amount
    of the Bank Loans outstanding as at 23rd January,
    1998, i.e. approximately HK$27.2 million based on
    the outstanding Bank Loans of approximately
    HK$544.4 million as at 23rd January, 1998
    (including corporate guarantees given by Mansion).

    The principal terms of the Notes will be:-

    (i)   interest bearing at 8% per annum, payable
    semi-annually in arrears;

    (ii)   convertible, wholly or partly, into new
    Shares at a price of HK$0.10 per Share (subject
    to usual adjustments for any future changes in
    the share capital of Mansion) at any time prior
    to repayment on maturity; and

    (iii)   unless previously converted, the Notes
    will be repayable by Mansion on the second
    anniversary date from date of issue of the Notes.

    The Notes will not be listed on any stock exchange.

    Search will grant a put option to the Bank Group
    to require Search to acquire the Notes (wholly or
    partly) from the Bank Group at the face value of
    the Notes.  The option period will be three
    months  from the date of issue of the Notes.

    Full conversion of the Notes at the initial
    conversion price of HK$0.10 per Share will lead
    to the issue of approximately 272 million Shares
    (based on the outstanding Bank Loans of
    approximately HK$544.4 million as at 23rd
    January, 1998).  Such Shares represent
    approximately 9.6% of the enlarged issued share
    capital of Mansion after completion of the
    Restructuring Proposal (before taking into
    account any exercise of the Warrants).

    2.   Mansion will issue new Shares (the "Bank
    Shares") in the value equal to 2% of amount of
    the Bank Loans outstanding as at 23rd January,
    1998, credited as fully paid at the price of
    HK$0.10 per Bank Share.  Based on total Bank
    Loans of HK$544.4 million as at 23rd January,
    1998, Mansion will issue a total of 108.8
    million Bank Shares.

    Mr. Chan and Search will grant a put option to
    the Bank Group to require them or their nominees
    to acquire the Bank Shares (wholly or partly)
    from the Bank Group at the price of HK$0.10 per
    Bank Share at completion of the Restructuring Proposal.

    3.   Mansion will issue approximately 410 million
    warrants (the "Bank Warrants" and together with
    the Shareholder Warrants, the "Warrants") to the
    Bank Group.  Each Bank Warrant will carry the
    right to subscribe in cash for new Shares at an
    initial subscription price of HK$0.10 per Share
    at any time for a period of three years after the
    date of issue.

    The Bank Group will be granted immediate exit
    from the Bank Warrants in two scenarios as follows:-

    (i)   immediately upon the issue of the Bank Warrants:-

    At the option of the Bank Group, it may by notice
    in writing require Mr. Chan, Search or their
    nominees to purchase the Bank Warrants (partly or
    wholly) from the Bank Group at the price of
    HK$0.035 per Bank Warrant upon the issue of the Bank
    Warrants.

    In the event that the Bank Group requires Mr.
    Chan or Search or their nominees to purchase all
    the Bank Warrants upon their issue, Mr. Chan and
    Search and their nominees will be interested in
    410 million Warrants, or approximately 80.3% of
    the Warrants. In such event, the Investors will
    jointly and severally undertake to the Stock
    Exchange to take appropriate steps to ensure that
    not less than 25% of the Warrants will be in the
    hands of the public upon completion of the
    Restructuring Proposal.

    (ii)   within a period of 6 months from the issue of
the
    Bank Warrants:-

    A merchant bank/securities company (the "Placing
    Agent") will be appointed to underwrite the
    placing of any Bank Warrants not disposed of by
    the Bank Group as aforesaid on behalf of the Bank
    Group at its request to independent third
    parties, or failing which the Placing Agent, at
    the price of HK$0.025 per Bank Warrant.  The
    underwriting period will be for a period of six
    months from the date of issue of the Bank Warrants.

    4.   The assignment to the Bank Group of the work
    in progress and accounts receivable of the
    Mansion Group in relation to 3 contracts in the
    People's Republic of China (the "Transferred
    Receivables"), which have an aggregate book value
    of approximately HK$220 million as at 31st October,
    1997.

    To facilitate the recovery of the Transferred
    Receivables, Mansion will, after completion of
    the Restructuring Proposal, provide interest free
    advances of up to HK$5 million to the Bank Group
    as and when necessary to finance the recovery of
    the Transferred Receivables.

    It should be noted that the actual number of the
    Bank Shares and the Bank Warrants and the amount
    of the Notes will be subject to confirmation of
    the final amount of the Bank Loans outstanding as
    at 23rd January, 1998.

    Under the Rules Governing the Listing of
    Securities on the Stock Exchange (the "Listing
    Rules"), the securities to be issued on exercise
    of the warrants must not exceed 20% of the issued
    share capital of the issuer at the time such
    warrants are issued. Based on the enlarged issued
    share capital of Mansion of approximately 2,575.1
    million Shares as at completion of the
    Restructuring Proposal, Mansion can issue up to
    approximately 515 million warrants. The Investors
    propose to issue approximately 510.7 million
    Warrants, of which approximately 100.7 million
    Warrants will be issued to the Shareholders by
    way of bonus and approximately 410.0 million
    Warrants will be issued to the Bank Group.

    As at 23rd January, 1998, the Bank Loans
    (including corporate guarantees given by Mansion)
    amounted to approximately HK$544.4 million. On
    this basis, exercise in full of the subscription
    rights attaching to the Warrants will lead to the
    issue of approximately 510.7 million Shares,
    which will represent approximately 16.6% of the
    enlarged issued share capital of Mansion upon
    completion of the Restructuring Proposal (before
    taking into account any conversion of the Notes).

    The issue price of HK$0.10 per new Share and the
    conversion/ subscription price of HK$0.10 per
    Share for the Notes/Shareholder Warrants/Bank
    Warrants equal to the par value of the Shares and
    represents a discount of approximately 21.9% to
    the closing price of HK$0.128 per Share
    immediately before suspension of trading in the
    Shares on the Stock Exchange at 2:54 p.m. on 20th
    March, 1998.  All the transactions contemplated
    under the Restructuring Proposal will be inter-
    conditional on each other.

    CONDITIONS OF THE RESTRUCTURING PROPOSAL

    The Restructuring Proposal will be conditional,
    among other things, on the following being fulfilled:

    1.   the Shareholders who are not involved or
    interested in the Restructuring Proposal (the
    "Independent Shareholders") approving at a
    special general meeting of Mansion the
    Restructuring Proposal and all
    agreements/arrangements relating to the
    Restructuring Proposal;

    2.   the Bank Group approving the release and
    settlement of the Bank Loans due to them on the
    above terms;

    3.   continued listing of the Shares on the Stock
    Exchange and trading in the Shares on the Stock
    Exchange not being suspended (save for temporary
    suspension) or revoked on the date prior to
    completion of the Restructuring Proposal;

    4.   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 pursuant
    to Note 1 to the Notes on Dispensations from Rule
    26 of the Hong Kong Code on Takeovers and Mergers
    (the "Code"); and

    5.   the Listing Committee of the Stock Exchange
    granting (and not withdrawing) listing of and
    permission to deal in the Subscription Shares,
    the Consideration Shares, the Rights Shares (in
    both nil-paid and fully-paid forms), the Bank
    Shares, the  Warrants  and the new Shares to be
    issued on exercise of the  Warrants and on
    conversion of the Notes.

    Regarding (2) above, the Bank Group has been
    informed about the signing of the Heads of
    Agreement.  However, approval by the Bank Group
    regarding the Restructuring Proposal has yet to be
    obtained.

    Regarding (3) above, the Investors will undertake
    to ensure that not less than 25% of the enlarged
    issued share capital of Mansion and the Warrants
    respectively will be in public hands after
    completion of the Restructuring Proposal in order
    to fulfill the minimum public float requirement
    as stipulated in the Listing Rules.

    In order to facilitate the issue of new Shares
    under the Restructuring Proposal, the directors
    of Mansion will propose to increase the
    authorised share capital of Mansion.  Application
    will be made to the Stock Exchange for the
    listing of and permission to deal in the
    aforesaid new Shares and Warrants.


ORIENT TELECOM: Court Meetings Scheduled for April 21
-----------------------------------------------------
Orient Telecom & Technology Holdings Limited announced last
week the despatch of the Scheme Document  dated  25th  
March,  1998. The respective Court Meeting, special  
general  meeting and warrantholders' meeting will be held
on 21st  April, 1998. If the Proposals are implemented, the
last day for dealings  in  the shares and warrants is
expected to be 4th May, 1998 and  date  of  withdrawal  of
listings is expected to be 11th May, 1998.

    Shareholders', Warrantholders' and Court Meetings

A  meeting  of  the Independent Minority Shareholders (as
defined in the  Scheme  Document)  has  been convened at
the direction of the Supreme  Court  of Bermuda (`Court
Meeting') and will be held on 21st April,  1998  for  the  
purpose of considering and, if thought fit, passing  a  
resolution  to  approve  the  Scheme (with or without
modification).  Notice  of  the  Court  Meeting  will be
given by announcement  on  26th  March and 27th March, 1998
in Hong Kong and Bermuda  respectively.  A special general
meeting of the Company will be  held  on 21st April, 1998
immediately after the Court Meeting to vote  on  a  
resolution to approve and give effect to the Scheme. A
warrantholders'  meeting  will  also  be  held on 21st
April, 1998 immediately  after the special general meeting
to vote on a resolution to approve and give effect to the
Warrant Proposal.

    Application for Withdrawal of Listings

If the Proposals are implemented, an application for the
withdrawal of  listings  of  the shares and warrants will
be made to the Stock Exchange, and  it is expected that the
last day for dealings in the shares and warrants of the
Company will be 4th May, 1998 and their listings on the  
Stock Exchange will be withdrawn with effect from 11th May,
1998. (SEHK 27-Mar-1998)


PALADIN LIMITED: 1997 Operating Results Announcd
--------------------------------------------------
Paladin Limited announced an HK$47.9 million loss on
turnover of HK$213 million for the period from January 7,
1997 through December 31, 1997.  This compares to an
HK$32.8 million loss on turnover of HK$93 million for the
corresponding 1996 period. (SEHK 26-Mar-1998)


RECOR HOLDINGS: Restructuring Final; Shares Resume Trading
----------------------------------------------------------
Recor Holdings Limited announced that its proposed
restructuring was completed on March 25, 1998 and trading
in the company's shares will resume immediately.

The Board now comprises a total of eight members with four
new appointments:

    (1) Mr. Siu Man Pau as the Chairman and an executive
        Director
    (2) Mr. Siu Man Piu as the Vice Chairman and an
        executive Director
    (3) Mr. Ho Chi Kuen, Dennis as a non-executive
Director;
    (4) Mr. Tiang Wei Ping, David as a non-executive
        Director.

The original four members will continue to be on the Board
in the following capacities:

    (a) Mr. Hon Siu Chung, James as the Vice Chairman and
        Managing Director of the Company;
    (b) Mr. Yeung Lai Kau as  an  executive  Director;  
    (c) Mr. Ho Yiu Ming, Billy as a non-executive  
Director;  
    (d) Ms. Lau Koon King, Rita as a non-executive
Director.

Following Completion of the Restructuring,  Messrs. Siu Man
Pau and Siu Man Piu, through Hoverton,  hold 456.5 million
Shares, representing about 52.46% of the enlarged issued
share capital of the Company. (SEHK 26-Mar-1998)


TAIWAN INDEX: 1997 Operating Results
------------------------------------
The Taiwan Index Fund Limited reports an HK$1.5 million net
loss on turnover of HK$971 thoustnd for the 1997 calendar
year.  This compares to an HK$301 thousand loss on turnover
of HK$1.8 million during 1996. (SEHK 25-Mar-1998)


YAOHAN INTERNATIONAL: Third Quarter Operating Results
----------------------------------------------------
Yaohan International Holdings Limited reported an HK$1.36
billion net loss for the period from January 4, 1997
through September 30, 1997, on turnover of HK$332 million
for the same period.  This compares for an HK$91.9 million
loss on HK$1.3 billion of turnover during the corresponding
nine-month period in 1996. (SEHK 25-Mar-1998)


I N D O N E S I A




J A P A N  

ASAHI BANK: S&P Lowers Long-Term Ratings to BBB+
------------------------------------------------
Standard & Poor's today lowered its long-term counterparty
and CD ratings on Asahi Bank Ltd. to triple-'B'-plus from
single-'A'-minus. The bank's short-term counterparty and CD
ratings are affirmed at 'A-2'. The ratings are removed from
CreditWatch, where they were placed on Dec. 24, 1997. The
outlook for the long-term ratings is negative.  Dependent
ratings relating to issues supported by letter of credit
enhancement that are affected by this downgrade will be
forthcoming. The rating action reflects worsening of the
bank's asset quality due to the current poor operating
environment in Japan.  It also reflects the need for a
higher level of provisioning to cover latent risks within
its existing loan portfolio.  High levels of credit costs
since the collapse of the bubble economy have weakened the
bank's capital base.  As a result, like most of its
counterparts, Asahi has limited flexibility to deal with
any further shocks that might occur within its operating
environment.  The impact of the economic turmoil in other
Asian countries is an additional concern.  However, the
bank's moderate presence in overseas markets is a
mitigating factor.  
(Standard & Poor's CreditWire 27-Mar-1998)


YAMAICHI SECURITIES: Will Close Tomorrow
----------------------------------------
Yamaichi will close tomorrow. Its stock ended on its final
day of trading on the Tokyo Stock Exchange on Thursday at
just two yen, a dramatic fall from its all-time high of
3,130 yen in April 1987. More than 41 million Yamaichi
shares changed hands, the highest turnover on the exchange,
as they became a hot target for financial vultures.

Many bought, hoping to grab a slice of the brokerage's
remaining assets. In liquidation proceedings, the firm
offered to sell a century's collection of paintings, books
and financial research documents as well as still-new desks
at the Tokyo head office.

Some branches were closed at the end of January or
February.

The Yamaichi group had about 10,000 employees. Its collapse
posed a serious unemployment problem, forcing the Labour
Ministry to set up a special panel to help find the staff
jobs. On Friday, it said about 70 per cent of the 8,200
employees looking for work had found jobs by March 20.
(South China Morning Post 30-Mar-1998)


K O R E A

DOOSAN GROUP: Foreign Investments to Ease Restructuring
-------------------------------------------------------
The Doosan Group announced yesterday that it has been
successful in attracting foreign investments worth a total
of $500 million from Interbrew of Belgium and Seagram of
the United States. It also announced its third-phased
restructuring plans, including a drastic reduction in the
number of its affiliates from the current 23 to a mere
four. As a part of its bid to acquire management funds for
its flagship firm OB Brewery, Doosan said that it plans to
set up a 50:50 joint venture with Interbrew, the world's
fourth largest beer manufacturer by the end of this year.
OB is expected to provide the manufacturing plant and the
distribution systems, while Interbrew will be funding the
project with its capital.

Furthermore, the U.S. whiskey giant Seagram is expected to
increase its holdings in its joint venture firm, Doosan
Seagram, which currently stands at 50 percent. Doosan said
that the details would have to be finalized with its
partners, but estimated that the funds raised through the
two deals will amount to $500 million.

The business group projected that it would be able to
reduce its debt-equity ratio to 200 percent, a significant
improvement from the 500 percent level at the end of last
year.

Furthermore, Doosan is expected to merge its affiliates
Doosan Kyungwol and Doosan Baekwha with OB Brewery, and
consolidate its businesses in other alcohol, distribution,
machinery, electronics and publication sectors under Doosan
Corp. After the consolidating process is taken place, its
number of affiliates will trickle down to just four units.

Furthermore, as a part of its attempt to make Doosan
Electronics one of its leading affiliates, Doosan announced
that it would take over Allied Signal of the United States
and Kolon Electronics.
(Korea Herald 31-Mar-1998)


HANBO GROUP: Prosecution Recommends Six-Year Term
-------------------------------------------------
The prosecution yesterday advocated a six-year prison term
for Chung Tai-soo, former chairman of the failed Hanbo
Group, on charges of handing out over 360 million won to
eight politicians for peddling influence in favor of his
business group. He is charged with distributing 10 million
to 200 million won to eight politicians from 1994 to 1996
for enabling his group duck parliamentary inspection.
(Korea Herald 31-Mar-1998)

KIA MOTORS: Daewoo Chairman Interested in Resolution
----------------------------------------------------
A comment by Daewoo Group chairman Kim Woo-choong that he
is definitely interested in participating in the resolution
of the Kia Motors issue is adding a new twist to the
already complicated automobile industry. Things heated up
last Friday when Kim told reporters that he has a major
interest in Kia and that Daewoo will be participating in
the process of normalizing the company in one way or
another. In fact, Kim remarked on plans Daewoo has for Kia,
indicating that Daewoo has been going over its prospective
role in the settling of the Kia issue for some time.

An industry official said there are two implications in his
remarks. One is that Daewoo is seeking to streamline the
market into two major automakers, while the other is that
it wishes check Samsung and Hyundai.

For the first scenario, Daewoo would need to work in  
concert with Hyundai to "share" Kia, leaving Samsung out in
the cold. However, this would require concessions on the
part of Hyundai which looks at Kia as a single piece. For
the second, Daewoo would likely be keeping its options open
where Kia is concerned, monitoring the moves of Hyundai and
Samsung and getting ready to take the initiative when
possible to capitalize on the situation.

One of Daewoo's major interests in Kia is its one-ton truck
production line, which would become accessible if Hyundai
and Daewoo were to jointly handle Kia Motors. Daewoo had
made a bid for the platform last year but had to pull back
because of its takeover of Ssangyong Motor. Should Hyundai
and Daewoo collaborate, it would likely be under the
condition that Daewoo gets the one-ton truck line.

Yet there is also the possibility that Daewoo will make its
bid for all of Kia Motors, which would fit in with its
ultimate goal of emerging as the largest automaker in the
country.

Such guesses are plausible, considering the fact that
Daewoo is currently negotiating with General Motors to sell
off 50 percent of its stake (TCRAP 30-Mar-1998), which
would generate considerable cash but leave it with limited
control.

"Should the agreement with GM be finalized, Daewoo would
have disposable cash that could be used to take over the
ailing automotive giant and play a more active role in the
domestic automobile industry," one industry observer said.
(Korea Times 30-Mar-1998)


KIA MOTORS: Hyundai May Use Foreign Investment
----------------------------------------------
The Hyundai Group is considering borrowing from abroad to
take over Kia Motors, a high-profile Hyundai Motor source
said on Saturday on condition of anonymity. Business
sources said that it is going to be costly to take over Kia
since the country's largest conglomerates Hyundai and
Samsung are fiercely competing to acquire the country's
third largest automaker that went insolvent last year.

Hyundai is therefore considering drawing foreign capital,  
the Hyundai source said. Convertible bonds are most likely
means since it is difficult to seek commercial loans due to
poor credit rating, the source said.

"We could also join hands with foreign company to buy up  
stakes when Kia Motors' capital is increased," he said.
(Asia Pulse 30-Mar-1998)


SAMYANG MERCHANT BANK: Ministry Orders Closing
----------------------------------------------
The Ministry of Finance and Economy yesterday ordered two
more merchant banks to be closed, noting that the two have
the least possibility of being restored due to excessive
borrowings. Under the directive, Taegu Merchant Bank, which
had its hearing process terminated, will be closed tomorrow
and Samyang Merchant Bank will be shut in mid-April after
undergoing a hearing process.

"We will decide on whether or not to let the two merchant
banks resume operation after finding that they have met the
capital adequacy standard of 4 percent through the
programs," a ministry official said. The official said the
newly formed Financial Supervisory Board will scrutinize
the rehabilitation of 14 merchant banks now in normal
operation to screen insolvent banks further.
(Korea Times 30-Mar-1998)


TAEGU MERCHANT BANK: Ministry Orders Closing
--------------------------------------------
The Ministry of Finance and Economy yesterday ordered two
more merchant banks to be closed, noting that the two have
the least possibility of being restored due to excessive
borrowings. Under the directive, Taegu Merchant Bank, which
had its hearing process terminated, will be closed tomorrow
and Samyang Merchant Bank will be shut in mid-April after
undergoing a hearing process.

"We will decide on whether or not to let the two merchant
banks resume operation after finding that they have met the
capital adequacy standard of 4 percent through the
programs," a ministry official said. The official said the
newly formed Financial Supervisory Board will scrutinize
the rehabilitation of 14 merchant banks now in normal
operation to screen insolvent banks further.
(Korea Times 30-Mar-1998)



M A L A Y S I A



P H I L I P P I N E S

MIDAS DIVERSIFIED: Agreement with Creditor Banks
------------------------------------------------
Cash-strapped export firm Midas Diversified Export Corp.
and its creditor-banks are close to an agreement to
reschedule the firm's 3.05- billion Philippine peso (PhP)
debt. Midas counsel Augusto Macam said the firm is ready to
withdraw its petition for suspension of payments filed with
the Securities and Exchange Commission (SEC) once the deal
is ironed out. He said the creditors "have agreed in
principle" to extend a 90-day moratorium on the firm's debt
payments. He said 11 of the firm's 16 creditor-banks are
agreeable to giving Midas this leeway. He said Midas and
the banks are looking at restructuring loan payments over a
five-year period. A memorandum of agreement is currently
being drafted to seal the pact and Mr. Macam said this
should be finalized in the next two weeks. Also, the firm's
owners are pooling resources to infuse new funds in the
company. Specifically, the owners are putting together all
of the firm's unencumbered assets to secure all of its
creditors, he said. Still, Mr. Macam said Midas is looking
for a "white night" or a new shareholder who can sink in
fresh investments. Of Midas' 16 creditor-banks, only
Metropolitan Bank and Trust Co. (Metrobank), its biggest
creditor, is secured. The bank has a total loan exposure of
PhP688.7 million.
(BusinessWorld 30-Mar-1998)


PACIFIC LENDERS: SET Sets Deadline on Requirements
--------------------------------------------------
The Securities and Exchange Commission (SEC) has given
ailing lending firm Pacific Lenders, Inc. 30 days to submit
pertinent information about its operations and finances.
SEC associate commissioner Edijer A. Martinez over the
weekend said the SEC decided to give the firm more time to
put together the required information. If the firm fails to
submit the requirements, the SEC will have no choice but to
dismiss the petition for suspension of payments filed by
the firm, Mr. Martinez said. The SEC ordered the Cebu-based
lending firm last February 25 to submit specific
information about its finances. These include an audited
financial statement; interim financial statement prior to
the firm's filing of the petition; list of the firm's
petitioners including the amount of their claims inclusive
of interest, among others. The firm has asked the SEC for
temporary relief from its creditors. It said it had
difficulty paying off loan obligations amounting to 240
million Philippine pesos (PhP) despite having assets
estimated at PhP250 million.
(BusinessWorld 30-Mar-1998)



S I N G A P O R E



T H A I L A N D

SIAM STRIP MILL: Itochu May Buy Shares
--------------------------------------
Itochu of Japan may buy some of the new shares to be issued
by Siam Strip Mill, a move that would ease the Thai steel
firm's financial problems. Japan's Ministry of
International Trade and Industries has said it will
guarantee US$300 million in credit for the mill company,
which is controlled by the Leeswadtrakul family.

A Thai Industry Ministry source said the new share issue
would be worth 700 million baht. If Itochu did buy a stake
it would improve the Thai firm's standing when seeking
Japanese loans. The mill's original plan to issue 800
million shares of 10 baht par value had to be postponed
because of the slump in the steel market. Its efforts to
borrow from Thai commercial banks were thwarted by the
financial squeeze.

Current major shareholders of Siam Strip Mill are the SSP
Group (39.19%), the Leeswadtrakul family (7.9%) Itochu
(10%), Nippon Plant Management (10%), financial
institutions (18.39%), the Boonnamsap family (4.92%), LPN
Group (4.69%) and Sakhun Pahusoot (5%).
(Bangkok Post 30-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,
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