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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      

      Thursday, May 21, 1998, Vol. 1, No. 64

                    Headlines


C H I N A   &   H O N G   K O N G

CA PACIFIC: Investors Stage Protest Over Losses
FORTUNA INTERNATIONAL: 1997 Results Announcement
LEADING SPIRIT: Trading Halted on Suspicion of Manipulation
RIGHTEOUS HOLDINGS: 1997 Results Announcement
SOUNDWILL HOLDINGS: 1997 Results Announcement
WHARF HOLDINGS: S&P Cuts Debt Rating


J A P A N  

KAJIMA CORP: Contractor to Post Extraordinary Losses


K O R E A

DONG AH GROUP: Creditor Banks Plan Debt-to-Equity Swap
HYUNDAI MOTORS: Announces Massive Layoff Plan
KUMHO GROUP: Will Raise Funds Through Assets Sales
SAMSUNG HEAVY: Shipbuilding to Remain Core of Unit
SSANGBANGWOOL GROUP: Two Core Units in Receivership
SSANGYONG INVESTMENT: To Sell Stake to Friedman Billings


M A L A Y S I A

EKRAN BHD: Malaysian Government Pays for Bakun Work


P H I L I P P I N E S

DUVAZ CORP: Real Estate Firm to Restructure Debts


S I N G A P O R E

NEPTUNE ORIENT LINES: Accounting Change Reduces Loss
UNITED OVERSEAS BANK: To Withdraw Secondary Listing


T H A I L A N D

BIJOUX HOLDINGS: SET Orders Delisting
NAVA FINANCE: BOT Gives Order to Decrease Capital


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

CA PACIFIC: Investors Stage Protest Over Losses
-----------------------------------------------
Clients of failed CA Pacific Securities staged a noisy
protest yesterday, marching on the offices of the
Securities and Futures Commission (SFC). More than 25
slogan-shouting investors demanded immediate compensation
for losses suffered when the securities firm failed. They
later dispersed after being assured provisional liquidators
were processing their claims.

Protesters said they planned to hire lawyers to sue bank
officials who allegedly allowed the failed securities firm
unsecured loans. CA Pacific clients have held several
protests following the liquidation of the firm in January.

Stock exchange authorities and the SFC have set up a
compensation fund of more than $600 million to cover losses
after protests by investors who claimed they were cheated
out of their money. Unsecured loans led to the fall of CA
Pacific on January 20, with investors complaining they had
been duped into opening margin accounts and were unable to
get their money back.
(South China Morning Post 20-May-1998)


FORTUNA INTERNATIONAL: 1997 Results Announcement
------------------------------------------------
For the period January 1, 1997 to December 31, 1997,
Fortuna International reports a net loss of HK$99,506,000
on turnover of HK$349,817,000. This compares to a loss of
HK$87,376,000 on turnover of HK$405,825,000 for the
corresponding 1996 period.
(SEHK 19-May-1998)


LEADING SPIRIT: Trading Halted on Suspicion of Manipulation
-----------------------------------------------------------
The Securities and Futures Commission yesterday halted
trading in Leading Spirit Holdings and subsidiary Leading
Spirit Conrowa Electric (LS Conrowa) in response to
growing suspicion their share prices are being manipulated.
The commission has been probing the reasons behind
exceptionally heavy turnover in both stocks since last
month. It is understood to have identified a group of
brokers responsible for most of the trading.

Leading Spirit and its subsidiary were originally suspended
on January 16 after the company said it was having cash-
flow problems and was part of an SFC investigation for
alleged market manipulation in LS Conrowa.

A commission spokesman said the latest suspension was aimed
at maintaining an orderly market and was related to price
and turnover movements. Traders said volatility had been
exacerbated by the fact Leading Spirit's chairman Wong Shi-
ling had been trading in the company's shares recently,
according to stock exchange disclosure reports.

Leading Spirit (Holdings) has reported a decrease in its
interests in LS Conrowa by 400 million shares, representing
5 per cent of the company's issued share capital. Mr Wong
also reported a decrease in his interests by the same
amount, the exchange said.

Leading Spirit has been in the spotlight ever since Mr Wong
was hit with writs for claims of $426 million in unpaid
securities charges. Mr Wong used his majority shareholding
in Leading Spirit as collateral to secure loans from
financial institutions to invest in the stock market.
Shares in Leading Spirit - which makes air-conditioners and
washing machines - rose 4.59 per cent to 18.2 cents
yesterday morning prior to the suspension, while LS Conrowa
jumped 5.58 per cent to 18.9 cents. Each have chalked up
gains of at least 25 per cent since Monday while the
benchmark Hang Seng Index has declined sharply.

Leading Spirit and LS Conrowa are still in talks with bank
creditors over agreements to freeze debt payments. Leading
Spirit has debts of $1.12 billion and LS Conrowa $244
million.
(South China Morning Post 20-May-1998)


RIGHTEOUS HOLDINGS: 1997 Results Announcement
---------------------------------------------
For the period September 1, 1997 to February 28, 1997,
Righteous (Holdings) Limited reports a net loss of
HK$8,900,000 on turnover of HK$62,120,000. This compares to
a net loss of HK$8,652,000 on turnover of HK$107,702,000
for the corresponding 1996-1997 period.
(SEHK 19-May-1998)


SOUNDWILL HOLDINGS: 1997 Results Announcement
---------------------------------------------
For the period January 1, 1997 to December 31, 1997,
Soundwill Holdings Limited reports a profit of HK$2,441,000
on turnover of HK$559,543,000. This compares to a profit of
HK$129,463,000 on turnover of HK$670,612,000 for the
corresponding 1996 period.
(SEHK 19-May-1998)


WHARF HOLDINGS: S&P Cuts Debt Rating
------------------------------------
Wharf Holdings' fortunes were buffeted further yesterday
when United States agency Standard & Poor's cut the
company's debt rating to reflect weakening cash flow. The
agency cut Wharf's long-term rating from A minus to BBB
plus, took the company off CreditWatch, and left its
ratings outlook as negative. S&P said the rating change
reflected slower than expected progress in Wharf's loss-
making communications businesses, and declines in the Hong
Kong property market.

The agency said the "deterioration in the operating
environment and the general economic slowdown have impacted
on Wharf's historically conservative financial profile".

Analysts said the rating cut had been expected as the
market had already been pricing in the effect of the
property slide on Wharf's balance sheet and gearing levels.

The agency ended by saying Wharf's management had indicated
its determination to reduce company debt levels. This
should help improve financial ratios by next year.
(South China Morning Post 20-May-1998)


=========
J A P A N  
=========

KAJIMA CORP: Contractor to Post Extraordinary Losses
----------------------------------------------------
Kajima Corp. plans to write off nonperforming assets
totaling some 200 billion yen for the year ending in March
1999, extraordinary losses likely to cause the leading
general contractor to post its first parent net loss since
getting listed in 1961. (Its first consolidated net loss of
14 billion yen is expected for the year ended last March
due largely to losses at a U.S. subsidiary.)

On the face of it, the move resembles an earlier decision  
at the rival Shimizu Corp. to dispose of 200 billion yen of  
soured assets over two years, but there is one critical  
difference: Shimizu has a concurrent plan to shed 1,000  
employees while Kajima is committed to a policy of  
restructuring without firing. In fact, Kajima's employment
stance is the rule rather than the exception in Japan's
construction industry, which is populated by hordes of
family-like operations with no stomach to let employees go.
But the ethos is widely deemed responsible for the sector's
current slump as it stood in the way of necessary
restructuring.

Kajima has the largest work force of the four biggest  
general contractors in Japan. Its present number of
employees is about 1,000 fewer than three years ago, but
the reduction came only as a result of natural attrition.
By contrast, Shimizu, already the smallest employer of the
four, is aiming to go even leaner under a payroll-cutting
program focused on employees aged 45 and up.

Of the projected 200 billion-yen write-off, losses from
intragroup reorganization account for 80 billion yen, way
above comparable figures at Shimizu (50 billion yen) and
Taisei Corp. (19 billion yen). Kajima's three-year plan
happens to parallel one in place at Shimizu. It remains to
be seen whether Kajima, with its flavor of the lingering
influence of the founding Kajima family, will come out
vindicated in its strategy of surviving the coming
challenges without compromising its cherished culture.
(Asia Pulse 20-May-1998)


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

DONG AH GROUP: Creditor Banks Plan Debt-to-Equity Swap
------------------------------------------------------
In what appears to be the first in Korean financial
industry's history, creditor banks to the ailing Dong Ah
Group said yesterday that they plan to swap a portion of
the conglomerate's debt into equity.

"We're nearing the decision to convert about 200 billion
won ($139 million) into equity and convertible debentures,"
said a spokesman for Seoul Bank, Dong Ah's main creditor.  
Creditor banks and nonbank lenders to Dong Ah are due to
reach a consensus at a meeting scheduled today. Seoul Bank
officials said that it still remains to be seen whether the
200 billion won will be separate from the 600 billion-won
emergency "cooperative loan" likely to be granted to Dong
Ah at the same meeting. Should Seoul Bank procure the
agreement from the other four creditor banks and nonbank
lenders, it could set the tone for other bank-led corporate
reforms.
(Korea Herald 21-May-1998)


HYUNDAI MOTORS: Announces Massive Layoff Plan
---------------------------------------------
The announcement of Hyundai Motors Co.'s massive layoff
plan Tuesday has sent fears throughout the labor community
that it might herald the launch of huge job cuts by the
nation's family-controlled conglomerates. It is the first
such move by the nation's conglomerates since layoffs were
legalized in February, and analysts predict other
conglomerates, known here as chaebol, may soon follow suit.

On Tuesday, the nation's largest auto maker announced that
it will lay off 8,189 workers, nearly 18 percent of a work
force of 45,000. The company said the layoff will be
implemented around late June or early July after close
consultation with its trade union. A company official said
Hyundai's management had informed the labor union of its
layoff plan because management-labor consultative meetings
had made no progress in how to restructure the car maker.

The labor union has already stated that it will outright
refuse the management's plan. If the management pushes
ahead with the job-cut program, a union official said, the
trade union will go on strike. Hyundai's plan is drawing
keen attention from other conglomerates which have not
dared to make job cuts because the government had been
opposed to massive layoffs.

If the conglomerates' restructuring plans are to be
conducted as announced, 500,000 to 600,000 workers are
expected to lose their jobs this year, they estimated. The
estimate is about one third of the conglomerates' work
forces.
(Korea Herald 21-May-1998)


KUMHO GROUP: Will Raise Funds Through Assets Sales
--------------------------------------------------
The Kumho Group announced Tuesday that it is working on a
plan to raise US$1.8 billion in foreign funds through the
sale of affiliates' assets and equities.

Kumho, owner of Asiana Airlines, hopes to raise some $490  
million from selling off those shares, and some aircraft. A  
number of foreign airline companies, including British  
Airways, are said to be interested in equity participation
in the domestic airliner, and in buying its aircraft.

Kumho Petrochemical is trying to secure $300 million by  
selling its shares in the Kumho P&B Chemical Co. and other  
joint venture firms. The group is also eyeing the turnover
of shares of Kumho Construction, which is involved in a
number of large construction projects both at home and
abroad, for another $300 million. Properties including
office buildings, the Chungmu marina  resort and other
assets held by the group will be sold by next year to
secure another $700 million, it said.
(Asia Pulse 20-May-1998)


SAMSUNG HEAVY: Shipbuilding to Remain Core of Unit
--------------------------------------------------
PERSISTENT speculation that Samsung may pull out of
shipbuilding has been firmly rejected by the South Korean
group. Samsung Heavy Industries, the company which houses
the shipbuilding business, said it would remain a core
sector for the group. With South Korea's leading
conglomerates undertaking major restructuring programmes,
some analysts have suggested that Samsung may sell its
shipbuilding business. But Samsung Heavy Industries said
there was no foundation to these suggestions.
(Lloyds List International 14-May-1998)


SSANGBANGWOOL GROUP: Two Core Units in Receivership
---------------------------------------------------
The ailing Ssangbangwool Group said yesterday that its two
flagship companies, Ssangbangwool Co. and Ssangbangwool
Development Co., applied for court receivership with the
Seoul district court in late Tuesday.

"Amid the uncertain prospects for the court protection from
creditors, Ssangbangwool has decided to request court
receivership for the two core units, in order to swiftly
normalize its management," a group spokesman said.

"Thus, the joint project with U.S. pop star Michael Jackson
to build a state-of-the-art resort complex in Muju in
central part of Korea will be indefinitely put on hold," he
said. He also noted that Ssangbangwool is now in talks with
a U.S. investment bank to attract an undisclosed amount of
foreign capital.
(Korea Herald 21-May-1998)


SSANGYONG INVESTMENT: To Sell Stake to Friedman Billings
--------------------------------------------------------
South Korea's Ssangyong Investment and Securities Co. is in
negotiations to transfer its stake to Friedman Billings
Ramsey (FBR), a U.S. investment banking and securities
firm, Ssangyong said Wednesday.

"We're ready to enter into details with FBR officials,  
since they're offering us favourable terms," a Ssangyong  
official said. He added that Ssangyong has been pushing to
sell its equity and headquarters office to foreign
interests, to improve its financial position. He said both
companies will likely sign letters of intent within the
month. Washington-based FBR is one of the top-10 securities
houses in the United States.
(Asia Pulse 20-May-1998)


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

EKRAN BHD: Malaysian Government Pays for Bakun Work
---------------------------------------------------
The Malaysian government has paid 270 million Malaysian    
ringgit (S$115.9 million) to Ekran Bhd for work it has so    
far completed on the shelved Bakun hydroelectric project,
Deputy Finance Minister Affifuddin Omar said yesterday.
Bernama news agency quoted Mr Affifuddin as telling
parliament that work on river diversion tunnels for the
deferred project was 65 per cent complete and that a
resettlement programme was on schedule.

Parliament passed a law on April 22 approving RM40 million
as early payment for the government's takeover of the Bakun
dam from Ekran. The payment was in addition to RM34 million
paid by the government for development of the dam and work
done by South Korea-owned Dong-Ah Engineering &
Construction Sdn Bhd.
(Singapore BusinessTimes 20-May-1998)


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

DUVAZ CORP: Real Estate Firm to Restructure Debts
-------------------------------------------------
Ailing real estate firm Duvaz Corp. is negotiating with
Metropolitan Bank and Trust Co. (Metrobank), its biggest
creditor, for the restructuring of its 500-million
Philippine peso (PhP) debt to the bank. Duvaz filed its
petition for debt relief last December following
difficulties in paying loans amounting to PhP911.4 million
including interest. Its outstanding liabilities amount to
PhP805.4 million.

A well-informed source at the Securities and Exchange
Commission (SEC) said Duvaz initiated the talks with
Metrobank. He said another of the firm's creditor banks,
Urban Bank, has a pending motion with the SEC for the
dismissal of the petition for debt relief submitted
by the real estate firm.

The source said the SEC hearing panel assigned to the case
is set to decide on Urban Bank's petition soon. Duvaz owes
Urban Bank PhP223.76 million.

Last January 8, the SEC issued an order granting the firm's
petition for a debt moratorium. The provisional order gave
Duvaz a 30-day moratorium.
(BusinessWorld 20-May-1998)


=================
S I N G A P O R E
=================

NEPTUNE ORIENT LINES: Accounting Change Reduces Loss
----------------------------------------------------
If not for a sudden change in its accounting policy,
Neptune Orient Lines would have declared a whopping $297.3     
million net loss for 1997. Instead, NOL's losses were
reduced to a more manageable -- though still shocking --
$66.5 million. According to its latest annual report, the
national carrier did this by changing its treatment of
extraordinary items. This allowed it to take $230.8 million
of losses out of the net (earnings) level and post them as
extraordinary items. This means that though NOL still
declared total losses of $297.3 million last year, only a
small portion (22 per cent) was booked as net losses
(losses after tax but before extraordinary items).

Last year, NOL decided to revert to its old policy of
booking most items "below the line", again to "better
reflect the results and operations" of the group. Of the
$230.8 million losses classified as extraordinary items,
some $191 million were provisions for rationalising the
combined operations of NOL and APL. Of the balance, only
$16 million was provision for diminution of value of
investment.

According to the notes, a bigger cause for losses was a
$22.4 million provision for loans to associates. At the end
of last year, NOL still had $49.4 million of loans to
associates, of which $41.9 million are due this year. Most
of these loans were interest free.
(Singapore BusinessTimes 20-May-1998)


UNITED OVERSEAS BANK: To Withdraw Secondary Listing
---------------------------------------------------
United Overseas Bank has decided to withdraw its 25-year
secondary listing on the Stock Exchange of Hongkong due to
declining interest. The bank said yesterday that the last
day of dealing in its shares on the Hongkong exchange would
be Thursday, June 25, and the shares would effectively
cease to be listed on the same exchange on Tuesday, June
30.

UOB, which is the only Singapore bank to have a secondary
listing, said the number of shares listed on the Hongkong
exchange had been declining over the years.

Shareholders had increasingly transferred from UOB's branch
register of shareholders in Hongkong to the principal
register of shareholders in Singapore, it said.

To date, only 379,502 UOB shares held by 31 shareholders
are listed in Hongkong. UOB has issued a total of 994.7
million shares.

The bank said its directors, having reviewed the history of
the secondary listing, were of the view that the infrequent
number of trades on the Hongkong stock exchange showed a
lack of demand for the listing service.
(Singapore BusinessTimes 20-May-1998)


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

BIJOUX HOLDINGS: SET Orders Delisting
-------------------------------------
The Stock Exchange of Thailand (SET) has recently allowed a
period of 30 days for trading in the securities of BIJOUX
which is subject to the SET's delisting process.  Now, as
of 20 May 1998 an "SP" sign has been posted on the
securities of BIJOUX until the causes of delisting are
resolved. (details as reported in the R-SIMS system dated
17 April 1998).

The mentioned period of 30 days has now terminated.  The
SET therefore exercises its authority stated under Clause
no. 5 (5) of the SET's rules dated 9 February 1995,
concerning the criteria, conditions, and methods to suspend
trading in listed securities.  Therefore, an "SP"
(Suspension) sign is posted on BIJOUX's securities
beginning from 20 May 1998 until the causes of delisting
are eliminated.  At the same time, by virtue of a new
categorization policy for listed companies facing possible
delisting, BIJOUX has been transfered to a category called
"Companies Under Rehabilitation (REHABCO)".
(SET 20-May-1998)


NAVA FINANCE: BOT Gives Order to Decrease Capital
-------------------------------------------------
To comply with the SET Notification Re: The Disclosure of
Financial Position and Operation Results by the Listed
Company, Nava Finance Public Company Limited (NAVA) would
like to inform that the Bank of Thailand (BOT)has given an
order to the Company which can be presumed as a resolution
of the shareholders' meeting. It states that NAVA must
decrease registered capital by abrogating 900 million
unpaid common shares or Bt9 billion. The remaining of
registered capital is equals to paid-up capital, 225
million common shares or Bt2.25 billion. BOT also orders
NAVA to decrease paid-up capital from Bt2.25 billion to
Bt2.25 million, a decrease of Bt2,247.75 million by
decrease par value from Bt10.-per share to Bt0.01 per
share.

The said decrease capital of Bt2.247.75 million, share
premium, other reserves which can be counted for capital
funds and net profit after appropriated will be used for
decreasing an accounting losses of the year 1997 in order
to make financial statements more accuracy. The rest will
be transferred to allowance for doubtful accounts.

NAVA has also been ordered to increase capital from the
remaining of Bt2.25 million to Bt4,652.25 million, or an
increase of Bt4.65 billion, thus NAVA will have new capital
to run an ongoing business by issuing 465 million shares
at par value of Bt0.01 per share.

NAVA will offer newly issued common shares to the Financial
Institutions Development Fund (FIDF)


   Yours Sincerely,

   Nopwong Ramakomut
   Managing Director

(SET 20-May-1998)


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