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             A S I A   P A C I F I C      

      Wednesday, May 13, 1998, Vol. 1, No. 58

                    Headlines


C H I N A   &   H O N G   K O N G

CLIMAX INTERNATIONAL: Extension of Time to Restructure Debt
FORLUXE SECURITIES: Liquidators Freeze Firm's Assets
KEE SHING HOLDINGS: 1997 Results Announcement
MANSION HOLDINGS: Awaiting Restructuring Proposal
MILLENNIUM GROUP: 1997 Results Announcement
PEREGRINE INVESTMENTS: Delays in Investigations


J A P A N  

HASEKO: Cuts Staff as Part of Restructuring Effort
MARUBENI CORP: Trading House Faces Possible Downgrade
NISSAN DIESEL: Daimler-Benz in Talks to Acquire Firm
NISSHO IWAI CORP: Trading House Faces Possible Downgrade


K O R E A

KEOPYUNG GROUP: Three Subsidiaries Declare Bankruptcy
MANDO MACHINERY: Workers End Strike
SSANGYONG GROUP: Offers to Sell Stakes in Units


P H I L I P P I N E S

PEPSI-COLA PHILS: Initiates Restructuring Program


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

CLIMAX INTERNATIONAL: Extension of Time to Restructure Debt
-----------------------------------------------------------
Climax International Company Limited (`Climax'), United
Pacific Industries Limited (`UPI') and Selma Limited
(`Selma') wish to announce that they have agreed to extend
the time limit for the fulfilment of a certain condition
stipulated in the Agreement. As set out in an announcement
made by Climax, UPI and Selma on 16th April, 1998 (the
`Announcement'), Climax, UPI and Selma entered into an
agreement on 10th April, 1998 (the `Agreement') dealing
with a range of matters affecting Climax and the
arrangements between Selma and UPI. As detailed in the
Announcement, a number of the provisions of the Agreement
are conditional on Climax reaching agreement with its
bankers in respect of the restructuring of the indebtedness
of Climax (the `Debt Restructuring Proposal'), in terms
acceptable to UPI, within 30 days from the date of the
Agreement. The 30 days period will expire on 10th May,
1998.

Climax, UPI and Selma now wish to announce that they have
agreed to extend the time limit in relation to the Debt
Restructuring Proposal for a period of 14 days expiring on
24th May, 1998. Further announcements will be made by
Climax, UPI and Selma as and when appropriate to advise the
public of further developments.

By Order of the Climax Board
Climax International Company Limited
Fung Kwong Yan
Chairman

By Order of the UPI Board
United Pacific Industries Limited
Simon N. Hsu
Group Managing Director

By Order of the Selma Board
Selma Limited
Fung Kwong Yan
Director

Hong Kong, 9th May, 1998

(SEHK 11-May-1998)


FORLUXE SECURITIES: Liquidators Freeze Firm's Assets
----------------------------------------------------
Provisional liquidators of brokerage Forluxe Securities and
its finance arm have secured an injunction to freeze the
assets of the missing boss and his family members. The
injunction will forbid James Mui Kwong-nok, his wife Peggy
Lee and his brother Gordon Mui Wing-fat from selling the
assets. The Commercial Crime Bureau is trying to track down
James Mui's whereabouts since leaving Hong Kong on May 4.
He was alleged to have taken $25 million from Forluxe
before his disappearance.

Provisional liquidators Tong Yat-hung and Nick Hill of
Nelson Wheeler Corporate Reconstruction and Insolvency said
Ms Lee had offered help on the operations and accounts of
finance arm Forluxe Finance. The Forluxe companies ceased
operations when James Mui failed to show up in the Kwai
Fong office last week.
(South China Morning Post 12-May-1998)


KEE SHING HOLDINGS: 1997 Results Announcement
---------------------------------------------
For the period January 1, 1997 to December 31, 1997, Kee
Shing Holdings Limited reports a profit of HK$27,235,000 on
turnover of HK$2,096,755,000. This compares to a profit of
HK$43,785,000 on turnover of HK$1,559,027,000 for the
corresponding 1996 period.
(SEHK 11-May-1998)


MANSION HOLDINGS: Awaiting Restructuring Proposal
-------------------------------------------------
Mansion is still waiting for one of its banks to approve
the Restructuring Proposal. The deadline for the signing of
the Final Agreements for the financial restructuring of the
Mansion Group has been further extended from 8th May, 1998
to 15th May, 1998.

Mansion and the Investors (comprising Prosperous Merchant
Limited ("PML"), Search Asia Pacific Limited ("Search") and
Symphony) entered into a further amending agreement on 8th
May, 1998 to extend the deadline for the signing of the
Final Agreements regarding the financial restructuring of
the Mansion Group from 8th May, 1998 to 15th May, 1998 (the
"Extended Deadline"). It is one of the conditions of the
Restructuring Proposal that the Bank Group approves the
release and settlement of the outstanding bank loans of the
Mansion Group as proposed in the Restructuring Proposal.
Mansion is still waiting for one of its banks to approve
the Restructuring Proposal. If the Final Agreements are not
executed on or before the Extended Deadline, the
Restructuring Proposal will lapse. Further announcements
will be made by Mansion and Symphony as and when
appropriate.

   By Order of the Board of  By Order of the Board of
   Mansion Holdings Limited  Symphony Holdings Limited
   Lee Sing Kau        Kam Suet Fan
   Company Secretary      Company Secretary

(SEHK 11-May-1998)


MILLENNIUM GROUP: 1997 Results Announcement
-------------------------------------------
For the period January 1, 1997 to December 31, 1997,
Millennium Group Limited reports a net loss of
HK$289,343,000 on turnover of HK$818,419,000. This compares
to a net loss of HK$59,191,000 on turnover of
HK$702,037,000 for the corresponding 1996 period.
Exceptional items include loss on disposal of subsidiaries,
provision for diminution in value of short-term
investments, provision for doubtful debts and write back of
provision for diminution in value of a subsidiary under
liquidation.
(SEHK 11-May-1998)


PEREGRINE INVESTMENTS: Delays in Investigations
-----------------------------------------------
The failure by former directors of Peregrine Investments
Holdings to meet deadlines in providing information has
delayed investigations into the collapse of the investment
bank, the Government says. Deputy Secretary for Financial
Services Rebecca Lai Ko Wing-yee yesterday confirmed that
the Securities and Futures Commission and the Stock
Exchange of Hong Kong were conducting an intensive
preliminary investigation into Peregrine's collapse and the
conduct of its directors. Mrs Lai said regulators had
encountered difficulties in getting former directors of the
investment bank, who include co-founders Philip Tose and
Francis Leung Pak-to, to complete their questionnaires on
time.

Since January, regulators have been largely mute on their
response to Peregrine's collapse. In the absence of the
sort of public outcry for action which has characterised
the collapse of broking firms CA Pacific and Forluxe
Securities, there has been speculation that the Government
may dispense with the need for an in depth probe. There are
fears that a Peregrine probe, headed by an independent
legal counsel, would be complex and costly.

Regulators are understood to be particularly interested in
Peregrine's public statements about its financial health in
the lead-up to its collapse.
(South China Morning Post 12-May-1998)


=========
J A P A N  
=========

HASEKO: Cuts Staff as Part of Restructuring Effort
--------------------------------------------------
Haseko, the Japanese construction group, yesterday said it
would cut 10 percent of its staff as part of a broader
restructuring plan. The move to cut the workforce by 570 to
5,160 in the current year comes amid growing market concern
about Japan's construction sector. Haseko yesterday
insisted that its restructuring plan should be sufficient
to ensure its longer-term viability. Sentiment was also
boosted when Daiwa, the company's main bank, indicated it
would continue to support the group in exchange for some
management control.
(Financial Times 12-May-1998)0


MARUBENI CORP: Trading House Faces Possible Downgrade
-----------------------------------------------------
US ratings agency Moody's Investors Service yesterday put
its ratings for Japanese trading house Marubeni Corp under
review for possible downgrade. Marubeni is one of Japan's
largest trading houses. Moody's said it put the firm's
upper medium grade A3 senior debt rating under review.

"Marubeni's current economic capital is being pressured by
the volatility risk of its equity portfolio and potential
losses in its large business investment portfolio," Moody's
said. It warned the firm had a high debt to equity ratio.

Last month, Marubeni warned it would post a parent net loss
of 32 billion yen (about HK$1.86 billion) in the year to
March and book extraordinary losses of 87 billion yen,
partly because of losses on its securities holdings.
(South China Morning Post 12-May-1998)


NISSAN DIESEL: Daimler-Benz in Talks to Acquire Firm
----------------------------------------------------
Daimler-Benz and Nissan yesterday said they were in
negotiations that could lead to the German industrial group
acquiring up to 33.4 percent of Nissan Diesel, Japan's
fourth-largest truckmaker. Such a move would give Daimler-
Benz effective control of Nissan Diesel, the quoted
subsidiary of the Nissan motor group which has 19 percent
of the Japanese truck market and operations in China and
the Middle East. The news of the talks follows last week's
announcement of Daimler-Benz's merger with Chrysler of the
U.S.

A deal would be one of the most important acquisitions by a
foreign group of a Japanese industrial company. It would
demonstrate an increased willingness among Japanese
corporations to sell assets overseas and could herald
similar moves by foreign buyers.

The group is heavily indebted, as are some of its
dealerships. Nissan Diesel is expected to post net losses
of Y2bn this financial year on sales of Y298bn.
(Financial Times 12-May-1998)


NISSHO IWAI CORP: Trading House Faces Possible Downgrade
--------------------------------------------------------
US ratings agency Moody's Investors Service yesterday put
its ratings for Japanese trading house Nissho Iwai Corp
under review for possible downgrade. Nissho Iwai's Baa2
senior debt rating, just two notches above junk bond
status, and P-2 short-term debt ratings were put under
review, the agency said. Moody's was concerned about the
"depth of the company's current capital structure to meet
the increasing risks of the business investment portfolio".
Nissho Iwai might also suffer from the Asian economic
crisis, it said.

The agency's review would "consider the longer-term
earnings quality of its diverse investment portfolio and
the possible intermediate impact of the recent Asian
economic turbulence on its Asia-related exposure", it said.

Again the firm had a high debt to equity ratio, which
undermined its financial flexibility "under a deteriorating
operating environment".

"We also expect the company's relatively weaker commodity
trade franchise may add pressure to the firm's longer term
profitability."
(South China Morning Post 12-May-1998)


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

KEOPYUNG GROUP: Three Subsidiaries Declare Bankruptcy
-----------------------------------------------------
Three subsidiaries of South Korea's Keopyung Group --
Keopyung Corp., Keopyung Construction and Keopyung Fashion
-- were declared bankrupt by the group's main creditor, Cho
Hung Bank, as it defaulted on bills worth 1,334 million won
Tuesday. A company is proclaimed bankrupt in Korea if it
defaults on maturing loans for two consecutive days. The
debts break down to 372 million owed by Keopyung Corp.,  
661 million won owed by Keopyung Construction and 301
million won owed by Keopyung Fashion. Keopyung Group's
total financial liabilites reached 1.63 trillion won
(US$1.1 billion), as of March.
(Asia Pulse 12-May-1998)

South Korea's Keopyung Group announced radical
restructuring plans Tuesday, saying it would slash the
number of affiliates from the current 19 to five.

The group said it would retain Keopyung Sygnestics,  
Keopyung Steel Chemical, Keopyung Chemical, the Hannam  
Investment and Securities Co. and Keopyung Leisure, but
would sell the rest. It will transfer management from three
of its financial subsidiaries - including Saehan Merchant
Banking - to its main creditor, the Korea Development Bank,
and seek court receivership for Keopyung Construction,
Keopyung Retail and Keopyung Corp.

The group will file for court mediation for its fashion and  
apparel affiliate, while liquidating its food unit. The
tungsten cutting tool business of the Korea Tungsten will
also be sold to an Israeli company, Iscar. Capital will be
boosted by 100 billion won in Hannam Investment through
foreign investment, to transform the company into a large-
scale investment bank. Keopyung Sygnestics will be
developed into a competitive exporting manufacturer.
(Asia Pulse 12-May-1998)


MANDO MACHINERY: Workers End Strike
-----------------------------------
Workers at South Korea's largest auto parts maker, Mando
Machinery Corp., ended a six-day-old strike Tuesday after
reaching an accord with management, a company spokesman
said. The management agreed late Monday to pay workers
April wages and bonuses worth a half month of monthly
salary plus 150,000 won (108 dollars) for each worker by
Thursday.

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 12-May-1998)


SSANGYONG GROUP: Offers to Sell Stakes in Units
-----------------------------------------------
South Korea's cash-strapped Ssangyong Group offered Tuesday
to sell stakes in refinery and cement businesses to
foreigners as part of its restructuring. Ssangyong plans to
raise about one billion dollars through asset sales, group
officials said, adding their restructuring plan would
affect profit-making Ssangyong Cement Co. and Ssangyong Oil
Refining Co. If necessary, it will sell some stakes in core
units to foreigners, with assets sales to be completed by
the end of 1999, they said.

The deal, which would degrade Ssangyong into a minor
conglomerate, needs approval from Saudi Arabia's Aramco,
the biggest shareholder in Ssangyong's refinery unit with a
stake of 35 percent. The group said its 28 percent stake in
Ssangyong Oil Refining would be sold to Aramco and other
foreign firms.

Business sectors will be cut from the current eight to two
or three through mergers and spin-offs, which will affect
Ssangyong Cement's plant and other properties, and
Ssangyong Investment Securities Co., it said.

The group also aims to cut its debt-to-equity ratio from
399 percent currently to 198 percent by the of end of 1999
and 159 percent in 2002.

Ssangyong, formerly the country's sixth largest business
giant with 25 subsidiaries, has struggled to stay afloat.
It has already sold paper-making and car units to local and
foreign buyers.
(Agence France-Presse 12-May-1998)


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

PEPSI-COLA PHILS: Initiates Restructuring Program
-------------------------------------------------
Softdrink firm Pepsi-Cola Products Phils., Inc. (PCPPI)
expects to put in place a financial restructuring program
by June or July involving additional cash infusion by its
mother firm and conversion of advances into equity. This
means PCPPI's mother firm Guoco Holdings (Philippines),
Inc. (GHPI) will be raising its equity in the softdrink
firm after acquiring PCPPI just after a year and a half
ago.

GHPI, an investment holding company, is a subsidiary of  
Hongkong-based Guoco Group Ltd. which is in turn owned by
Malaysia's Hong Leong Group. PCPPI will use the additional
cash after the restructuring to reduce its debts, fund
capital expenditure for expansion projects and sustain its
aggressive marketing strategies, a top PCPPI official told
BusinessWorld.

While the official did not disclose how big PCPPI's total
debts are, he said the figure is "close" to the 3.5 billion
Philippine peso (PhP) amount quoted by its close
competitor, Cosmos Bottling Corp.
(BusinessWorld 12-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

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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