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             A S I A   P A C I F I C      

      Wednesday, April 8, 1998, Vol. 1, No. 35

                    Headlines


C H I N A   A N D   H O N G   K O N G

BILLION INTERNATIONAL: Suspension of Trading
FAIRYOUNG: Deal Falls Through as Creditors Make Demands
JOYCE BOUTIQUE: Last Day of Dealings in the Nil Paid Rights
PAM & FRANK: Releases Remaining Restructuring Documents
PEREGRINE INVESTMENTS: Deadline on Bankruptcy Action


J A P A N  

KUMAGAI GUMI: Construction Company Reports Huge Losses
SHIMIZU CORP: Construction Company Suffers Huge Losses
TAISEI: To Suffer Net Loss Due to Property Write-Downs


K O R E A

KIA MOTORS: Export Agreement with Partner Ford


M A L A Y S I A

SIME BANK: Questions Mount as Deal Announcement is Delayed


T H A I L A N D

THAI OLEFINS: Negotiates to Roll Over Existing Debt


C H I N A   &   H O N G   K O N G

BILLION INTERNATIONAL: Suspension of Trading
--------------------------------------------
At the request of Billion International Holdings Limited,
trading in its shares will be suspended with effect from
10:00 a.m. April 3, 1998, pending an announcement.
(SEHK 03-Apr-1998)


FAIRYOUNG: Deal Falls Through as Creditors Make Demands
-------------------------------------------------------
New World Infrastructure's move to acquire a majority stake
in Pacific Ports Co (PPC) has been thrown into doubt after
the vendor, Fairyoung Holdings, failed to comply with the
terms of the the deal. On March 23, Fairyoung agreed to
sell its holding of 358.2 million PPC shares, to New World
at $1.15 per share. New World yesterday said Fairyoung was
unable to furnish it with a 43.17 per cent stake in PPC by
an April 2 deadline. As a result, it said, it had issued a
writ against Fairyoung asking for a court order to force
the company to proceed with the sale. Fairyoung countered
by saying the $441.93 million sale constituted a major
transaction under the Listing Rules, and therefore required
shareholders' approval. For this reason, Fairyoung could
not complete the sale on time, it said.

Fairyoung also said the recent reshuffle within its board
of directors and resignation of the company's legal counsel
contributed to its failure to meet the deadline. It said in
view of possible opposition from minority shareholders to
the pricing of the deal, it proposed to seek advice from an
independent financial adviser.

Fairyoung is 64 per cent-owned by its former chairman, John
Chan Boon-ning, who early last month, was arrested and
charged with allegedly stealing $81 million from the
company. He has been replaced by Edward Rule. Fairyoung had
said the sale would help repay loans which have fallen due.
Trading in Fairyoung shares has been frozen since March 4
after the firm experienced cash-flow problems caused by a
creditor demanding the immediate payment of a $5 million
loan.
(South China Morning Post 07-Apr-1998)


JOYCE BOUTIQUE: Last Day of Dealings in the Nil Paid Rights
-----------------------------------------------------------
Trading in the nil paid Rights in the ordinary shares
of Joyce Boutique Holdings Limited (stock code: 2948) will
cease after the close of business on Wednesday, 8/4/98
(FORCE MAJEURE WARNING: These rights are conditional).
(SEHK 03-Apr-1998)


PAM & FRANK: Releases Remaining Restructuring Documents
-------------------------------------------------------
Pam & Frank International Holdings Ltd. has released the  
outstanding documents involved in its restructuring plan.
(TCR-AP 06-Apr-1998) Accordingly all the necessary
documentation for completion together with the financing
documents in relation to the purchases of Property A and
Property B have been released from escrow. Completion has
become effective as of 31st March, 1998.

The security against the short term financing arrangements
in relation to the purchases of Property A and Property B
includes 305 million Shares (out of 505 million Shares)
issued to Hoi Fat. The Capital Reduction is now expected to
become effective on 10th April, 1998 subject to compliance
with the requirements of Bermuda law as stated  below.  
Parallel trading for the existing Share certificates and  
the new Share certificates is allowed during the period  
from 22nd April, 1998 to 14th May, 1998, both days
inclusive.

Hoi Fat has decided to take up HK$10 million of
the optional Convertible Bond instead of HK$20 million.

The tenancy  agreement, car park licence agreement
and management agreement relating to Property A were
entered into on 31st March, 1998. These agreements
constitute connected transactions of the Company.

Assuming the Capital Reduction has become effective,
currently, Hoi Fat holds about 48%, the Yeungs and Mr. Alan
Wong hold about 10.3% and the Lenders hold about 28.6% of
the issued share capital of the Company. The Yeungs will
resign as Directors effective 10th April, 1998. Mr. Alan
Wong resigned as a Director on 31st March, 1998. Trading  
in the securities of the Company is expected to resume at
10:00 a.m. on Wednesday, 15th April, 1998. The Company  
expects to release a press announcement on 15th April, 1998  
confirming that the Capital Reduction has become effective
and that trading in the securities of the Company will
resume.
(SEHK 03-Apr-1998)


PEREGRINE INVESTMENTS: Deadline on Bankruptcy Action
----------------------------------------------------
The Government has given the Securities and Futures
Commission until the end of the month to decide what action
should be taken over the failure of Peregrine Investments
Holdings. Sources said the commission could decide to
recommend the matter be referred directly to police if it
believed criminality was involved. It could also recommend
an independent post-mortem investigation be conducted
similar to the probe of the Allied Group in the early
1990s, which cost the Government $46 million.

Under Section 143 of the companies ordinance, Financial
Secretary Donald Tsang Yam-kuen has the final say on how
the matter will be dealt with, but sources said he would
rely heavily on the advice of the watchdog. An SFC
spokesman declined to confirm whether Peregrine was being
investigated. However, under Section 29a of the regulator's
ordinance, the commission has the power to conduct a
preliminary inspection of the finance house's books.

A post-mortem report, which probably would be compiled by
an independent team of accountants and financial
specialists led by a top legal counsel, would be costly and
take at least a year. Given Peregrine's former size, the
SFC would be incapable of conducting a thorough
investigation itself.
(South China Morning Post 07-Apr-1998)


J A P A N  

KUMAGAI GUMI: Construction Company Reports Huge Losses
------------------------------------------------------
Kumagai Gumi Co. Ltd. said late last year it would incur a
consolidated net loss of 207 billion yen for the year to
March, a huge jump from a 7.0 billion yen loss forecast
earlier. The company attributed the heavier loss to
extraordinary losses of 239 billion yen in relation to a
planned restructuring of its overseas property development
projects. Japan's unemployment rate in February hit a
record high 3.6 percent, up 0.1 percentage points from
January, the government said, blaming the fall on a sharp
decline in construction jobs.
(Agence France-Presse 06-Apr-1998)


SHIMIZU CORP: Construction Company Suffers Huge Losses
------------------------------------------------------
On Wednesday, Japan's top contractor Shimizu Corp. said it
would suffer its first parent net loss since it was listed
in 1961. It will incur a 45 billion yen net loss in the
year to March 1998 due to extra write-offs, reversing its
earlier estimate of a five billion yen net profit. Shimizu
plans to book a 47 billion yen loss on the write-off of bad
debts. A further extra loss of 20.2 billion yen will be
brought to account due to capital losses on equity
holdings. US ratings agency Moody's Investors Service
promptly cut its ratings for the firm, saying the write-
offs will "significantly impair its leverage position."
Japan's unemployment rate in February hit a record high 3.6
percent, up 0.1  percentage points from January, the
government said, blaming the fall on a sharp decline in
construction jobs. (Agence France-Presse 06-Apr-1998)

Shimizu Corp. (1803 JP ) rose 13 yen to 450. Investors
bought construction shares on expectation an economic
package to be announced later this month will earmark much
new money for spending on public works, said Yukio Morota,
a manager at Tokyo Securities Co.  Taku Yamasaki, policy
chief of the ruling Liberal Democratic Party, said the
ruling Liberal Democratic will likely propose 8 trillion
yen ($59 billion) in real spending in its latest economy-
boosting package.
(Bloomberg Japan Equity Movers 06-Apr-1998)


TAISEI: To Suffer Net Loss Due to Property Write-Downs
------------------------------------------------------
Japan's Taisei Corp. said Monday it would incur a group net
loss of 67 billion yen (498 million dollars) for the year
to March 1998 to write down the value of property holdings.

"In order to survive severe economic conditions and intense
competition in the industry, we have decided to take
drastic measures aimed at restructuring our assets," the
major construction company said in a statement. Taisei now
expects to report group revenue of 1,860 billion yen in the
year with pre-tax profit of 27 billion yen. The company had
earlier estimated a group net profit at one billion yen on  
revenue of 1,940 billion yen with pre-tax profit of 27
billion yen.

The downward revision came after the company decided to
book an extraordinary loss of 125 billion yen to write down
the value of property holdings, the company said. At a
parent level, Taisei now sees pre-tax profit of 25 billion
yen on revenue of 1,385 billion yen with a net loss of 112
billion yen, it said. It will be Taisei's first parent net
loss since it was listed in 1957. Earlier, Taisei forecast
a parent pre-tax profit of 23 billion yen on revenue of
1,450 billion yen with a net profit of nine billion yen.

Weighed down by mounting debt, most construction firms are
forecast to suffer huge losses for the year to March with
no economic recovery expected for the time being. Japan's
unemployment rate in February hit a record high 3.6
percent, up 0.1  percentage points from January, the
government said, blaming the fall on a sharp decline in
construction jobs. (Agence France-Presse 06-Apr-1998)

Taisei Corp.(1801 JP ) rose 38 yen to 365. Investors bought
construction shares on expectation an economic package to
be announced later this month will earmark much new money
for spending on public works, said Yukio Morota, a manager
at Tokyo Securities Co.  Taku Yamasaki, policy chief of the
ruling Liberal Democratic Party, said the ruling Liberal
Democratic will likely propose 8 trillion yen ($59 billion)
in real spending in its latest economy-boosting package.
(Bloomberg Japan Equity Movers 06-Apr-1998)


K O R E A

KIA MOTORS: Export Agreement with Partner Ford
----------------------------------------------
Kia Motors Corp, South Korea's second-largest car-maker,
has reached an agreement to export 300,000 compact cars to
long-time partner Ford Motor Co over the next four years.
Kia would supply 220,000 finished cars and 80,000 knock-
down kits carrying Ford's name from 1999 to 2002, a
spokesman said. The export cost per car would be about
US$5,000. The contract may boost Kia's chances of
persuading Ford to increase investment in the company.

Kia has been under bankruptcy protection for almost a year
due to mounting debts. Ford already owns about 17 per cent
of Kia Motors, including a stake held by subsidiary Mazda
Motor Corp.

"The agreement underlines the solid partnership between Kia
and Ford," the Kia spokesman said.
(South China Morning Post 07-Apr-1998)


M A L A Y S I A

SIME BANK: Questions Mount as Deal Announcement is Delayed
----------------------------------------------------------
When Malaysian financial services group Rashid Hussain Bhd
announced it was planning to take over Sime Bank Bhd, the
deal was hailed as a life-saver for the ailing bank, the
nation's fifth biggest. Nearly a month later, questions are
mounting over how Rashid will pay for a deal which valued
Sime Bank at 852.24 million Malaysian ringgit (S$366.6
million). Rashid has missed its own target date for
announcing the details of the funding by two weeks. It said
on March 10 that its RHB Bank Bhd unit would unveil
"details of the funding for the acquisition and
recapitalisation of Sime Bank by the end of next week".

Yesterday, the Kuala Lumpur Stock Exchange announced it was
extending a suspension in trade of shares in Rashid and two
subsidiaries -- RHB Capital Bhd and RHB Sakura Merchant
Bankers Bhd -- until April 13. It was the third time the
suspension has been extended since March 23. Rashid shares
have not traded since March 3, when they were suspended
pending an announcement on the Sime Bank deal. Analysts
said despite the difficulties, the deal would eventually
come through as financier Abdul Rashid Hussain has a
personal stake to ensure its success.
(Singapore BusinessTimes 07-Apr-1998)


T H A I L A N D

THAI OLEFINS: Negotiates to Roll Over Existing Debt
---------------------------------------------------
Thai Olefins Co (TOC), part of the Petroleum Authority of
Thailand (PTT), is seeking to roll over its debts and
refinance existing loans to ease its financial woes.
TOC has assigned Chase Manhattan, its financial adviser, to
negotiate with its leading creditors, the Industrial Bank
of Japan (IBJ) and Bangkok Bank, to first roll over the
US$80 million due this year.

The petrochemical company's outstanding offshore debt
amounts to $370 million and is now due for settlement,
according to Viroj Mavichak, executive director of PTT
Petrochemical.  IBJ and Bangkok Bank were also requested to
find ways to refinance TOC debts to help reduce its debt
settlement burden, he added.

Although the olefins market looks unfavourable until the
year 2000, TOC needs to proceed with its plan to increase
its Rayong plant's production capacity to achieve a better
economy of scale in the middle of this year, Mr Viroj said.
The expansion would require an investment of $75 million,
boosting TOC annual output from 575,000 tonnes to 725,000
tonnes. The expansion is expected to help reduce the
production cost from $422 a tonne to $362 a tonne. But TOC
is facing difficulties in obtaining funds for the expansion
as its shareholders - PTT, Vinythai, Bangkok Polyethylene
and TPI - are also facing financial problems.
(Bangkok Post 07-Apr-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
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