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             A S I A   P A C I F I C      

     Tuesday, April 28, 1998, Vol. 1, No. 48

                    Headlines


J A P A N  

DAIWA SECURITIES: Major Losses Due to Scandals
HITACHI LTD: To Post Largest Extraordinary Loss Ever
NIKKO SECURITIES: Major Losses Due to Scandals
NOMURA SECURITIES: Major Losses Due to Scandals


K O R E A

HANKOOK STEEL: Trading Suspended on Insolvency Rumors
SAMSUNG HEAVY: Volvo Close to Making Deal on Unit


M A L A Y S I A

EKRAN BHD: Obtains Restraining Orders
SIME BANK: RHB and Phileo to be Requoted Today
WEMBLEY INDUSTRIES: Court Orders Ekran to Stop Actions


P H I L I P P I N E S

NATIONAL STEEL: Creditors Agree on Restructuring Plan


T H A I L A N D

ALPHATEC ELECTRONICS: Bank will go to Court if Necessary
STA GROUP: Bank Agrees to Rehabilitate Debt


=========
J A P A N  
=========

DAIWA SECURITIES: Major Losses Due to Scandals
----------------------------------------------
Earnings at Japan's Big Three brokerages were hit hard in
the fiscal year ended March by a string of scandals,
including illegal payoffs to a sokaiya corporate racketeer,
it was announced Friday. Nomura Securities Co. (8604)
announced a 67% year-on-year fall in pretax profit to 40.7
billion yen. Operating revenue declined 26% to 342.6
billion yen. The leading brokerage plans to maintain the
annual dividend of 10 yen per share. Daiwa Securities Co.
(8601) posted an 88% plunge in fiscal 1997 pretax profit to
5.1 billion yen. Operating revenue totaled 255.9 billion
yen, down 12% year on year. The securities company will cut
its annual payout by 2 yen to 6 yen. It posted 39.9 billion
yen in extraordinary loss to help affiliates write off
nonperforming loans. Nikko Securities Co. (8603) recorded
38.2 billion yen in pretax loss in fiscal 1997, the
greatest loss since the brokerage went public, against a
profit of 30.7 billion yen a year earlier. Operating
revenue fell 25% to 197.5 billion yen. The firm will cut
its annual dividend by 3 yen to 5 yen.

Stock brokerage commission revenues declined by more than
10% at each of the Big Three, while commission revenues
from underwriting and initial public offerings plunged by
over 60%.
(The Nihon Keizai Shimbun 25-Apr-1998)


HITACHI LTD: To Post Largest Extraordinary Loss Ever
----------------------------------------------------
Hitachi Ltd. said Friday it will post 117.5 billion yen in
extraordinary loss for the year ended March, its largest
extraordinary loss ever. The figure comprises 70.5 billion
yen in loss from its semiconductor operations, a 43.8
billion yen loss to cover a shortage in its pension
reserves and 3.2 billion yen in appraisal losses on its
holdings of stocks in subsidiaries. Of the semiconductor
loss, 34.2 billion yen is due to liquidating a U.S.
affiliate and 23.1 billion yen is from depreciation of
chipmaking machinery following a sharp drop in memory
prices. The company will also post a 13 billion yen loss on
its leasing facilities. The company will offset the
extraordinary loss by posting a 117.6 yen extraordinary
profit on sales of shareholdings, including stocks of
subsidiaries.
(The Nihon Keizai Shimbun 25-Apr-1998)


NIKKO SECURITIES: Major Losses Due to Scandals
----------------------------------------------
Earnings at Japan's Big Three brokerages were hit hard in
the fiscal year ended March by a string of scandals,
including illegal payoffs to a sokaiya corporate racketeer,
it was announced Friday. Nomura Securities Co. (8604)
announced a 67% year-on-year fall in pretax profit to 40.7
billion yen. Operating revenue declined 26% to 342.6
billion yen. The leading brokerage plans to maintain the
annual dividend of 10 yen per share. Daiwa Securities Co.
(8601) posted an 88% plunge in fiscal 1997 pretax profit to
5.1 billion yen. Operating revenue totaled 255.9 billion
yen, down 12% year on year. The securities company will cut
its annual payout by 2 yen to 6 yen. It posted 39.9 billion
yen in extraordinary loss to help affiliates write off
nonperforming loans. Nikko Securities Co. (8603) recorded
38.2 billion yen in pretax loss in fiscal 1997, the
greatest loss since the brokerage went public, against a
profit of 30.7 billion yen a year earlier. Operating
revenue fell 25% to 197.5 billion yen. The firm will cut
its annual dividend by 3 yen to 5 yen.

Stock brokerage commission revenues declined by more than
10% at each of the Big Three, while commission revenues
from underwriting and initial public offerings plunged by
over 60%.
(The Nihon Keizai Shimbun 25-Apr-1998)


NOMURA SECURITIES: Major Losses Due to Scandals
-----------------------------------------------
Earnings at Japan's Big Three brokerages were hit hard in
the fiscal year ended March by a string of scandals,
including illegal payoffs to a sokaiya corporate racketeer,
it was announced Friday. Nomura Securities Co. (8604)
announced a 67% year-on-year fall in pretax profit to 40.7
billion yen. Operating revenue declined 26% to 342.6
billion yen. The leading brokerage plans to maintain the
annual dividend of 10 yen per share. Daiwa Securities Co.
(8601) posted an 88% plunge in fiscal 1997 pretax profit to
5.1 billion yen. Operating revenue totaled 255.9 billion
yen, down 12% year on year. The securities company will cut
its annual payout by 2 yen to 6 yen. It posted 39.9 billion
yen in extraordinary loss to help affiliates write off
nonperforming loans. Nikko Securities Co. (8603) recorded
38.2 billion yen in pretax loss in fiscal 1997, the
greatest loss since the brokerage went public, against a
profit of 30.7 billion yen a year earlier. Operating
revenue fell 25% to 197.5 billion yen. The firm will cut
its annual dividend by 3 yen to 5 yen.

Stock brokerage commission revenues declined by more than
10% at each of the Big Three, while commission revenues
from underwriting and initial public offerings plunged by
over 60%.
(The Nihon Keizai Shimbun 25-Apr-1998)


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

HANKOOK STEEL: Trading Suspended on Insolvency Rumors
-----------------------------------------------------
The  Korea  Stock Exchange said Friday trading of Hankook
Steel Co Ltd has been suspended on rumors it is on the
verge of insolvency. "Trading of the company's shares were
suspended this morning," an exchange official said.   
Officials at Hankook, one of the leading steel-making firm
in South Korea, were not immediately available for comment.   
Hankook manufactures cast-iron billet products, which are
used for shipbuilding, industrial plants and heavy
machinery.
(Agence France-Presse 24-Apr-1998)


SAMSUNG HEAVY: Volvo Close to Making Deal on Unit
-------------------------------------------------
Volvo, the Swedish automotive group, is close to finalising
the acquitistion of the construction equipment arm of
Samsung Heavy Industries, part of South Korea's largest
company. The deal, likely to be completed within two weeks,
will give Volvo Construction Equipment (VCE) it first
manufacturing presence in south-east Asia and greatly
strengthen its position in industrial excavators.
Contributions from Samsung's business would increase VCE's
annual sales by almost 30 percent to about US$3bn a year.
(Financial Times 27-Apr-1998)


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

EKRAN BHD: Obtains Restraining Orders
-------------------------------------
Ekran Bhd has obtained restraining orders from the High
Court to stop all actions and proceedings against its
associate, Wembley Industries Holdings Bhd, the national
Bernama news agency reported on Saturday. It quoted an
Ekran statement as saying Wembley's subsidiary, Plaza
Rakyat Sdn Bhd, has also obtained a similar order from the
High Court. Officials at Ekran and Wembley were not
available for comment.

The court order was sought after construction group Wembley
was placed under receivership by Phileo Allied Bhd's
PhileoAllied Bank (M) Bhd last month-end. Wembley was
placed under receivership under the powers contained in
four debentures dated July 10, 1995.

Bernama quoted Ekran as saying the court ordered that the
powers of the board of directors of Wembley and Plaza
Rakyat be restored for six months from the date of the
order on April 24 or until further order. Bernama said the
order also restrained the receivers and managers of
Wembley, Messrs Gong Wee Ning and Abdul Rahim Hamid of
Coopers & Lybrand, from further action in exercising any
right or powers under the terms of the debentures for six
months.
(The Straits Times 27-Apr-1998)


SIME BANK: RHB and Phileo to be Requoted Today
----------------------------------------------
Shares of Malaysian financial services firms Rashid Hussain
Bhd and Phileo Allied Bhd will be requoted today. Shares of
Rashid's associates, RHB Capital Bhd and RHB Sakura
Merchant Bankers Bhd, will also be requoted, the national
Bernama news agency quoted a statement from the Kuala
Lumpur Stock Exchange as saying. Last Wednesday, Rashid
Hussain announced it had managed to raise funds needed for
its planned acquisition of Sime Bank. As part of the fund-
raising, Rashid Hussain said it was issuing M$1 billion
(S$421.1 million) of preference shares in RHB Capital's RHB
Bank Bhd, which has been subscribed on a "bought deal"
basis by Phileo. Rashid Hussain plans to merge RHB Bank
with loss-making Sime Bank to create Malaysia's second-
largest banking group.

Its shares were last traded on March 3 at M$5.20, RHB
Capital at M$3.20 and RHB Sakura at M$2.80. Phileo shares
which were suspended last Thursday, were last traded at
M$2.12.
(The Straits Times 27-Apr-1998)


WEMBLEY INDUSTRIES: Court Orders Ekran to Stop Actions
------------------------------------------------------
Ekran Bhd has obtained restraining orders from the High
Court to stop all actions and proceedings against its
associate, Wembley Industries Holdings Bhd, the national
Bernama news agency reported on Saturday. It quoted an
Ekran statement as saying Wembley's subsidiary, Plaza
Rakyat Sdn Bhd, has also obtained a similar order from the
High Court. Officials at Ekran and Wembley were not
available for comment.

The court order was sought after construction group Wembley
was placed under receivership by Phileo Allied Bhd's
PhileoAllied Bank (M) Bhd last month-end. Wembley was
placed under receivership under the powers contained in
four debentures dated July 10, 1995.

Bernama quoted Ekran as saying the court ordered that the
powers of the board of directors of Wembley and Plaza
Rakyat be restored for six months from the date of the
order on April 24 or until further order. Bernama said the
order also restrained the receivers and managers of
Wembley, Messrs Gong Wee Ning and Abdul Rahim Hamid of
Coopers & Lybrand, from further action in exercising any
right or powers under the terms of the debentures for six
months.
(The Straits Times 27-Apr-1998)


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

NATIONAL STEEL: Creditors Agree on Restructuring Plan
-----------------------------------------------------
The 14 creditors of National Steel Corp. (NSC) led by the
Philippine National Bank (PNB) are working out a long-term
restructuring plan for the troubled firm's loans amounting
to more than 10 billion Philippine pesos (PhP). Sources
said the 14 banks, in a meeting with NSC officials, last
week agreed in principle to a 60-day debt moratorium which
will prevent the creditors from foreclosing the firm's
assets or halting credit lines. The final agreement is
expected to be hammered out in a few days when each bank
has endorsed the plan on paper. NSC is seeking PhP2 billion
more in loans, possibly from the same consortium of banks,
to sustain operations. NSC will be disposing of idle
properties, including a 12-hectare property in Pasig, to
beef up its scarce resources.
(BusinessWorld 27-Apr-1998)


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

ALPHATEC ELECTRONICS: Bank will go to Court if Necessary
--------------------------------------------------------
Krung Thai Bank says it is prepared to sue 20 companies
under Thailand's new bankruptcy law to recover loans
exceeding 30 billion baht. Bank president Sirin
Nimmanhaeminda said talks with tardy clients focused on
restructuring outstanding debts, and seeking a
rehabilitation plan acceptable to the bank, other creditors
and the borrower. But if no agreement could be reached, the
bank was ready to go to court to reclaim its money, he
said.

"Take Alphatec Electronics, for example. The company has
massive outstanding liabilities, involving many banks who
had lent to Alphatec through syndicated loans. Many of the
creditors want to rehabilitate the firm, since the
electronic parts industry offers good future prospects. But
if the company owners can't come to an agreement, going to
court might be the only way."
(Bangkok Post 27-Apr-1998)


STA GROUP: Bank Agrees to Rehabilitate Debt
-------------------------------------------
Krung Thai Bank says it is prepared to sue 20 companies
under Thailand's new bankruptcy law to recover loans
exceeding 30 billion baht. Bank president Sirin
Nimmanhaeminda said talks with tardy clients focused on
restructuring outstanding debts, and seeking a
rehabilitation plan acceptable to the bank, other creditors
and the borrower. But if no agreement could be reached, the
bank was ready to go to court to reclaim its money, he
said.

Krung Thai Bank says it has successfully reached agreements
to rehabilitate debts at several firms without having to
resort to legal action. Furniture manufacturer STA Co was
in default on 10-billion-baht worth of syndicated loans,
with Krung Thai holding the largest share at 3.8 billion
baht followed by Thai Farmers Bank at 1.6 billion. Under an
agreement reached with STA shareholders, a factory would be
sold to foreign investors. Talks on the price were under
way with Austrian firm Cronospon.
(Bangkok Post 27-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
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