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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, May 11, 1998, Vol. 1, No. 56

                    Headlines


C H I N A   &   H O N G   K O N G

FORLUXE SECURITIES: SEC Liquidates Forluxe Securities
MARIA'S BAKERY: Thousands Redeem Cake Vouchers


K O R E A

DAEWOO GROUP: Third-largest Chaebol Announces Restructuring
DONG AH: Chairman's Offer Increases Investor Confidence
MANDO MACHINERY: Workers Strike Seoul Plant
POHANG IRON: Export-Import Bank Agrees to Extend Loan


M A L A Y S I A

HALIM SECURITIES: Seeks Stockbroking Licence for Phillip
OMEGA SECURITIES: KLSE Begins On-site Supervision


P H I L I P P I N E S

PHILIPPINE GAMING: Bgroup to Raise Stake in Firm


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C H I N A   &   H O N G   K O N G
=================================

FORLUXE SECURITIES: SEC Liquidates Forluxe Securities
-----------------------------------------------------
The Securities and Futures Commission has moved to
liquidate Forluxe Securities and its finance arm as owner
James Mui Kwong-nok remains at large in connection with an
alleged fraud. Police are understood to have drawn close to
Mr Mui's whereabouts and are also believed to have widened
their search to include two other Forluxe directors
believed to be Mr Mui's brothers.

The SFC yesterday launched a winding-up petition in the
high court and placed a restriction notice on the company's
assets which freezes shares owned by the brokerage's 630
clients. Provisional liquidators are expected to be
appointed today. Mr Mui is believed to have sold some of
his client's shares for more than $20 million before
disappearing, sources said.

Since Forluxe's business was suspended on Tuesday, police
have been flooded with more than 300 complaints against the
brokerage involved claims worth more than $56 million.

The commission said Forluxe and its finance arm were at
this stage unlikely to be able to repay clients. Sources
said Forluxe had shares worth $8 million in the Central
Clearing and Settlement System (CCASS) and one securities
trading licence valued at about $7 million, against
liabilities of $40 million.
(South China Morning Post 08-May-1998)


MARIA'S BAKERY: Thousands Redeem Cake Vouchers
----------------------------------------------
Tens of thousands of vouchers from collapsed bakery chain
Maria's were redeemed yesterday. Although holders had to
pay $20 to redeem each one, long queues formed outside some
of the St Honore and Arome Bakery shops accepting them
before they opened. Arome, which originally planned to
accept 1,000 Maria's coupons, was forced to nearly double
its offer because of the enthusiastic response.
(South China Morning Post 08-May-1998)


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

DAEWOO GROUP: Third-largest Chaebol Announces Restructuring
-----------------------------------------------------------
The Daewoo Group said yesterday that it would raise $7
billion abroad, while spinning off 17 of its 37
subsidiaries by 2000 to be reborn as a slimmer and fitter
conglomerate. Announcing its restructuring program, the
nation's third-largest business group, or chaebol, also
said that it would reduce debt-equity ratio from the
current 413.8 percent to 183.8 percent by the year-end and
further to 167.5 percent by 1999.

To achieve these goals, the group would level up its three
core units -- Daewoo Corp., Daewoo Motor Co. and Daewoo
Heavy Industries Ltd. -- as the world's "superexcellent"
corporations, while fostering three other units' Daewoo
Electronics Co. Daewoo Telecom Ltd. and Daewoo Securities
Co. -- as frontier firms in its global networks, a group
spokesman said. As part of the self-retrenchment move, the
group is considering discontinuing or delaying 101
investment projects planned by Daewoo Corp.'s construction
division. Through these and other efforts, the group plans
to raise its net worth ratio to more than 40 percent by the
year 2001.

Daewoo will reduce the debt-equity ratio of affiliated
manufacturing firms to 79.8 percent over the next five
years, while completely abolishing the cross-payment
guarantees among affiliated companies by 1999. In order to
attract more foreign fund, the giant business group said it
will expand its strategic alliance with General Motors
Corp., while seeking capital tie-up in its heavy industry,
trade, construction and financing units. In order to
support ailing small and medium-size businesses, the group
plans to provide a total of 2.5 trillion won ($1.85
billion) this year. It will also offer management support
to 4,567 firms.

Prior to the announcement, Daewoo Group Chairman Kim Woo-
choong said that his group would not resort to mass lay-
offs as a means of restructuring. Kim, also co-chairman of
the Federation of Korean Industries, said that the country
would be able to overcome the current economic crisis
within two years, provided that the businesses devote
themselves to expanding exports, while refraining from
further expansion and capital spending.
(Korea Herald 09-May-1998)


DONG AH: Chairman's Offer Increases Investor Confidence
-------------------------------------------------------
South Korean stocks rose, paring earlier losses, as Dong-Ah
Construction rebounded after Dong-Ah Group chairman Choi
Won-suk said he was willing to give up all his shares in
the group' companies to creditor banks in return for one
trillion won (about HK$5.65 billion) in emergency loans.

Mr Choi yesterday asked SeoulBank and other creditors for
the emergency loans, the third such request this year.

"[Investors welcome] Choi's effort to take his
responsibility to revive the company," SK Securities broker
Park Yong-sun said. The Composite Index ended 3.24 points
higher at 379.47, after falling to a low of 369.95.
(South China Morning Post 08-May-1998)


MANDO MACHINERY: Workers Strike Seoul Plant
-------------------------------------------
Workers at Mando Machinery Corp. went on strike
Thursday, paralyzing production of South Korea's largest
auto parts maker. Some 5,000 workers at seven workplaces
across the country laid down tools, calling for payment of
arrears in wages worth 50 billion won (37.3 million
dollars). The workers, demanding the company pay them April
wages and 1997 bonuses worth three and half months of
monthly salary, filed applications in a bid to impound
Mando's assets until they are paid off. Mando Machinery is
a subsidiary of the Halla Group, which collapsed in
December last year. Mando was declared insolvent on
December 6 and was allowed temporary court protection on
April 15 to enable it to negotiate with creditors
to reschedule debts.
(Agence France-Presse 07-May-1998)


POHANG IRON: Export-Import Bank Agrees to Extend Loan
-----------------------------------------------------
Pohang Iron and Steel Co. (POSCO) said Friday that the
Export-Import Bank of Japan has offered to extend a US$300-
million loan to the Korean steelmaker, if it agrees to set
up a joint venture with Japanese firms. The loan, with an
interest of 200 basis points over Libor, is the result of
recent efforts by POSCO chairman Yoo Sang-bu, who has been
in Tokyo to solicit Japanese investment in the construction
of liquefied natural gas (LNG) storage terminals at POSCO.

POSCO, which plans to change fuel for its steel mills to  
LNG, will complete contruction of the two LNG terminals at
its Kwangyang Steelworks plant with a storage of 100,000  
kiloliters each by 2002.

The Eximbank of Japan made the joint venture proposal;  
Japanese firms would help build the LNG terminals in
exchange for the funds. The Korean steelmaker is reviewing
the proposal positively. It regards the joint-venture
project and borrowing terms favourably.
(Asia Pulse 08-May-1998)


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

HALIM SECURITIES: Seeks Stockbroking Licence for Phillip
--------------------------------------------------------
Uniphoenix Corp Bhd said yesterday it plans to have a
stockbroking licence issued to private limited firm Phillip
Securities Sdn Bhd as part of its restructuring of troubled
unit Halim Securities Sdn Bhd. Halim, a stockbroking firm,
was put under the jurisdiction of the Kuala Lumpur Stock
Exchange (KLSE) for violation of trading curbs. Its
activities were suspended based on inadequate capital.
Uniphoenix said it will attempt to have a stockbroking
licence issued to "a private limited company incorporated
in Malaysia to be named Phillip Securities Sdn Bhd or any
such other names to be approved" by the Registrar of
Companies. It said in a statement it would also seek to
have Phillip Securities recognised as a member of the KLSE
in substitution of Halim Securities.
(Singapore BusinessTimes 08-May-1998)


OMEGA SECURITIES: KLSE Begins On-site Supervision
-------------------------------------------------
The Kuala Lumpur Stock Exchange (KLSE) today commenced on-
site supervision of Omega Securities Sdn Bhd, which ceased
trading for failure to meet the minimum liquid fund
requirement.

"KLSE's on-site supervision of Omega is in line with the
objective of investor protection in ensuring the smooth
cessation of trading at Omega whilst addressing enquiries
of clients and remisiers of the stockbroking company may
have," said a KLSE statement issued to reporters during a
briefing session for the company's clients here today. The
KLSE, however, did not provide a guarantee to Omega's
clients and remisiers that their interests in the company
would be protected, said clients and remisiers when met by
reporters after the briefing, which was not opened to the
latter.

The KLSE said its team had been placed at Omega before the
start of trading today, which would be monitoring and
supervising the financial management settlement of
outstanding contracts as well as Central Depository System
operations of the stockbroking company. The team would
remain in Omega until the KLSE was satisfied that the need
for investors' protection in the stockbroking company had
been addressed, it said.

When asked on what Omega could do now, he said: "The
regulator has acted, now up to the company to act on its
own if it wants to resume trading." Basically, Omega no
longer has enough capital, he said, but did not elaborate
on the minimum liquid fund requirement nor the size of the
deficit incurred by Omega.

A remisier said remisiers were told that the Omega
management was "still working hard" in trying to
recapitalise the firm, but details were not given. "If the
situation persists, Omega might have to wind up," said
another remisier.
(The Star Online 04-May-1998)


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

PHILIPPINE GAMING: Bgroup to Raise Stake in Firm
------------------------------------------------
Berjaya Group Bhd (BGroup), through its subsidiary Berjaya
Lottery Management (HK) Ltd (BLM), has entered into two
separate agreements with Prime Gaming Philippines Inc for a
proposed disposal and a proposed debt assignment which will
enable BGroup to increase its stake in Philippine Gaming
Management Corp (PGMC) through Prime Gaming, to 54.9 per
cent from 40 per cent previously, thus making Prime Gaming
its subsidiary. BLM has proposed to dispose of its entire
40 per cent interest in PGMC to Prime Gaming for 208
million pesos (100 pesos = RM10.10) to be satisfied by the  
issue of 20.8 million new common shares of 10 pesos each at
par in Prime Gaming. Another agreement is a proposed
assignment to Prime Gaming of the long-term debt of 329.49
million pesos which PGMC owes BLM by the issue of 32.95
million new common shares of 10 pesos each at par in Prime
Gaming.

On the proposed debt assignment, under the terms of
agreement between BLM and Prime Gaming, the former will
assign, transfer and convey its rights, interests and
claims arising from the loan to PGMC of an equivalent
amount of 329.49 million pesos in consideration for the
32.95 million new common shares in Prime Gaming of 10 pesos
each to be issued at par to BLM.

PGMC is the concessionaire for the supply of lottery
equipment and accessories to the Philippine Charity
Sweepstake Office in Luzon Island for an eight-year
duration. Prime Gaming, meanwhile, was officially listed on
the Philippine Stock Exchange (PSE) in 1971 with its core
business as a manufacturer of sugar and molasses. It ceased
commercial operations in 1991 but maintained listing status
as an inactive company on the PSE.
(Singapore BusinessTimes 06-May-1998)


S U B S C R I P T I O N   I N F O R M A T I O N

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