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             A S I A   P A C I F I C      

      Friday, May 22, 1998, Vol. 1, No. 65

                    Headlines


C H I N A   &   H O N G   K O N G

ARTIC VIDEO: Parent Group Dissolves Business
BEIJING DEVELOPMENT: 1997 Results Announcement
FAR EAST HOLDINGS: 1997 Results Announcement
HANSOM HOLDINGS: Announces Share Placing and Subscription
PACIFIC ANDES: 1997 Results Announcement
PEREGRINE INVESTMENTS: Fixed Income Sued by Commerzbank
SWANK INTERNATIONAL: Standstill with Lenders Continues
WAH NAM GROUP: 1997 Results Announcement


J A P A N  

ITOCHU CORP: Posts Parent Net Losses
KYOCERA CORP: Parent Pre-tax Profit Fall 32%
MARUBENI CORP: Posts Parent Net Losses
MATSUSHITA ELECTRIC: Net Profit Declines 32%
NIPPON CREDIT BANK: Seeking Extension of Loan Repayment
NISSAN MOTORS: S&P Places Nissan Ratings on CreditWatch
NISSAN MOTORS: Unveils Reform Plan
TOMEN CORP: Posts Parent Net Losses


K O R E A

KOHAP GROUP: To Sell Emtec Magnetics GmbH


M A L A Y S I A

MALAYSIAN AIRLINE: Government May Not Allow Restructuring
PACIFIC & ORIENT BHD: 49% Decline in Pre-tax Profit
RENONG: Subsidiary Faber Sells Hotels to Pay for Investment


P H I L I P P I N E S

WG&A: To Sell Ships to Trim Debt and Excess Capacity


S I N G A P O R E

HONGKONG TEAKWOOD: 900 Lose Jobs at Singapore Factory
WBL CORP: Net Earnings Down 83% in First Half


T H A I L A N D

CHAROEN POKPHAND: Details on Group's Comeback Plans
NAKORNTHON BANK: Denies Recapitalisation is Necessary
UNI-DIRECT: Parent Announces Dissolution of Company


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

ARTIC VIDEO: Parent Group Dissolves Business
--------------------------------------------
Mei Ah International Limited is terminating Artic's video
renting and retailing business and the additional cost for
the closure will not be material to the group. In response
to the recent newspaper reporting of the termination of
video renting and retailing business of Artic Video Limited
("Artic"), the Company's wholly-owned subsidiary, the board
of directors of the Company wishes to provide the following
information to clarify Artic's position as well as for
public's information.

The Board would also like to take this opportunity to
clarify that the acquisition cost as at 1st July 1996 also
representing the present book value of Artic was
HK$2,800,000 and the number of existing active members of
Artic was approximately 30,000 instead of HK$12,800,000 and
100,000 respectively as reported in certain newspapers.

The additional cost for the closure of Artic's operation
will not be material to the Group.


By Order of the Board
Mei Ah International Limited
Tony Hing Chi
Secretary

Hong Kong 19th May 1998

(SEHK 20-May-1998)


BEIJING DEVELOPMENT: 1997 Results Announcement
----------------------------------------------
For the period January 1, 1997 to December 31, 1997,
Beijing Development (Hong Kong) Limited reports a net loss
of HK$13,967,000 on turnover of HK$113,580,000. This
compares to a net loss of HK$26,292,000 on turnover of
HK$102,077,000 for the corresponding 1996 period.
(SEHK 20-May-1998)


FAR EAST HOLDINGS: 1997 Results Announcement
--------------------------------------------
For the period January 1, 1997 to December 31, 1997, Far
East Holdings International Limited reports a net loss of
HK$64,251,245 on turnover of HK$2,378,664,913. This
compares to a net loss of HK$13,378,454 on turnover of
HK$4,266,593,100 for the corresponding 1996 period. In
previous years, the Group's trading in financial derivative    
products was not considered part of the Group's continuing
operations and the profit and loss arising therefrom was
included in the Group's profit and loss account as an
exceptional item.  However, during the year, the Group
continued to trade in financial derivative products, and in
the opinion of the Directors, such activity had developed
and formed part of the continuing operations of the Group.
Accordingly, the respective turnover and exceptional item
in the comparative figures in last year have been
reclassified to conform with current year's presentation.
(SEHK 21-May-1998)


HANSOM HOLDINGS: Announces Share Placing and Subscription
---------------------------------------------------------
On 18th May, 1998, South Hong Investment Limited ("South
Hong"), the controlling shareholder of Hansom Holdings
Limited (the "Company"), has agreed to place, through BNP
Prime Peregrine Securities Limited, 20,450,000 existing
shares of HK$0.10 each of the Company ("Share(s)") to
independent investors at a price (the "Placing Price") of
HK$2.39 per Share (the "Placing") and to subscribe for
42,616,300 new Shares at the same price per Share (the
"Subscription").

The net proceeds of the Subscription are expected to amount
to approximately HK$99 million, which will be used mainly
as working capital for the intended additional trading
business of the Company and its subsidiaries (the "Group")
referred to below.

Following the closing of the general offer on 17th April,
1998 made by South Hong, the directors of the Company (the
"Directors") continue to discuss with Yuxi Hongta Tobacco
(Group) Ltd. ("Yuxi Hongta") for the appointment of a
member of the Group to act as one of Yuxi Hongta's import
and export agents in territories outside China mainland. To
date, no binding agreements have been signed nor any
definitive terms in respect of the appointment finalised,
but the Directors believe that the terms of the aforesaid
agreements can be finalised in the immediate future.

The Company will bear all costs and expenses incurred in
connection with the Subscription and will reimburse South
Hong all costs and expenses incurred by it in connection
with the Placing. The net proceeds of the Subscription are
expected to amount to approximately HK$99 million which are
intended to be applied as to approximately HK$60 million as
the working capital for the intended additional trading
business of the Group referred to above, as to
approximately HK$10 million for the repayment of
outstanding bank loans of the Group and as to the balance
as general additional working capital.


By Order of the Board
Tie Zhenguo
Vice Chairman

Hong Kong, 19th May, 1998

(SEHK 20-May-1998)


PACIFIC ANDES: 1997 Results Announcement
----------------------------------------
For the period January 1, 1997 to December 31, 1997,
Pacific Andes International Holdings Limited reports a net
profit of HK$60,757,000 on turnover of HK$2,554,978,000.
This compares to a profit of HK$176,430,000 on turnover of
HK$1,179,717,000 for the corresponding 1996 period.
(SEHK 20-May-1998)


PEREGRINE INVESTMENTS: Fixed Income Sued by Commerzbank
-------------------------------------------------------
Peregrine Fixed Income is being sued by German bank
Commerzbank for US$40 million after Peregrine allegedly
entered a foreign-exchange transaction in the knowledge
that it would not be able to meet its side of the deal. The
writ - the first to be filed since the collapse of the
investment house - alleges Peregrine continued soliciting
new business hours before its collapse, ignoring the risk
to its counterparties.

The writ centres on two crucial days in Peregrine's history
- January 8 and January 9 this year. During these two days,
Peregrine's negotiations with potential white knight - the
Zurich Group - were terminated and the Government refused
to bail Peregrine out, triggering its collapse. It had been
proposed Zurich would invest $200 million in Peregrine in
return for a 24.1 per cent stake to help recapitalise the
ailing group.

The swap transaction at the centre of the allegations
involved Commerzbank providing Peregrine with 73.2 million
deutschemarks (about HK$317.62 million) on January 8 and
Peregrine repaying the same value for $40.1 million on
January 9. Commerzbank alleges it paid Peregrine the 73
million marks but never received the $40 million in return.
It is the timing of the transfer of the 73 million marks
that lies at the centre of the case. On January 7 - a day
before the transaction was agreed upon - Peregrine's shares
were suspended from trading on news the terms and
conditions of Zurich's investment in Peregrine were being
renegotiated. After the discussions collapsed, Peregrine's
board approached the Monetary Authority seeking a loan to
keep the group afloat - which the writ states was rejected
"on or before 3 pm".

It then states Commerzbank's general manager spoke to
Peregrine's treasurer John Lee on the telephone at about
3.30 pm, during which Mr Lee confirmed the Zurich deal had
collapsed and that it would default on all payments in New
York by midnight January 9. The writ states at the time the
Zurich deal collapsed and the Hong Kong Monetary Authority
refused to bail Peregrine out, the 73 million marks had not
been transferred. The writ alleges Peregrine should have
told Commerzbank earlier that talks with Zurich had broken
down, the authority had failed to lend it money and the
group faced collapse. On January 9, the Securities and
Futures Commission moved to prevent Peregrine from
conducting business or disposing of its assets - scuppering
Commerzbank's ability to receive payment.

"The defendant either before or no later than 3 pm Hong
Kong time on January 9 knew through its directors that it
would not be able to meet its financial obligations as and
when they fell due," the writ states.
(South China Morning Post 21-May-1998)


SWANK INTERNATIONAL: Standstill with Lenders Continues
------------------------------------------------------
The Company announces that : (i) the Independent Board
Committee has terminated its further investigations in
respect of matters arising from the KPMG Report, (ii) the
management structure of the Swank Group has been
reorganised, (iii) the standstill arrangements with the
Group's lenders continue in effect and that a longer term
arrangement with lenders is being considered, (iv) the
publication of the annual results and annual report for the
year ended 31 December 1997 has been delayed to 31 July
1998, and (v) there have been developments affecting Hatton
Enterprises Corp., the Company's controlling shareholder.

The Committee was formed to consider and review,
independently, the findings of a draft report by KPMG Peat
Marwick dated 3 December 1997 ("KPMG Report") in relation
to matters connected with allegations made in a letter
dated 21 December 1996 from a person unknown to the
Company's auditors ("the Anonymous Letter"). The Committee
has seen no evidence to substantiate allegations in the
Anonymous Letter suggesting that Mr. Y. S Lam owned or
controlled or was otherwise personally interested in the
Hanmy Group or any of the US Customers; the internal
management and financial controls in operation at the
relevant times in respect of the matters which were the
subject of the investigation did not satisfy the standards
which could reasonably be expected of a Hong Kong SAR
listed company.

In the light of the above factors and the inherent
limitations of investigations of this nature, the Committee
believes that further enquires by it are unlikely to
provide material information pertinent to the allegations
and matters investigated by the Committee and the subject
of the KPMG Report. Accordingly, the Committee has
recommended to the Board, which recommendations the Board
has approved, that: (i) the further investigation be
terminated, and (ii) the KPMG Report be finalised and
adopted by the Board.

The standstill arrangements between the Group and its
bankers and noteholders (together "the Lenders") continue,
subject to any one Lender giving notice of termination. In
this regard, the position remains the same as disclosed in
the Company's announcement dated 22 January 1998. One
Lender continues to be unwilling to agree formally to
extend the Standstill to 30 June 1998 which would provide
that the Standstill may only be terminated with the
approval of a majority of the Lenders. In the meantime, the
Company and its advisers are currently negotiating with the
Lenders a possible longer term restructuring of the Group's
borrowings. These negotiations are at an early stage and an
announcement will be made as and when the negotiations lead
to a formal agreement on the issue.

Trading in the shares of the Company was suspended with
effect from 18 March 1997 at the request of the Company.
Trading remains suspended until further notice.

   By Order of the Board
   G. C. Dobby
   Chairman

Dated 19 May 1998

(SEHK 20-May-1998)


WAH NAM GROUP: 1997 Results Announcement
----------------------------------------
For the period January 1, 1997 to December 31, 1997, Wah
Nam Group Limited reports a net loss of HK$34,239,713 on
turnover of HK$136,512,860. This compares to a net loss of
HK$48,645,169 on turnover of HK$173,039,480 for the
corresponding 1996 period. With effect from 31st October,
1997, the Company dispose of all of its controlling
interest in Wah Nam Investment (Construction Materials)    
Limited ("WNI").  WNI held a 60 per cent equity interest in
Nanhai Xie He Tile Co., Ltd. which was principally engaged
in the manufacture and sale of ceramic tiles and related
products in the People's Republic of China. During the
period prior to its disposal, WNI had a turnover of    
HK$47,841,028 (1996:HK$64,750,823) and an operating loss of
HK$9,809,841 (1996:HK$15,889,228).
(SEHK 20-May-1998)


=========
J A P A N  
=========

ITOCHU CORP: Posts Parent Net Losses
------------------------------------
Itochu Corp. (8001), Marubeni Corp. (8002) and Tomen Corp.
(8003) posted parent-only net losses in the year ended
March, according to earnings reports announced by nine
general trading houses Wednesday. The Asian currency crisis
and falling domestic stock prices are blamed for the red
ink. Iitochu's net loss stood at 14.7 billion yen in fiscal
1997, due mainly to the disposal of nonperforming assets.
Itochu's projected consolidated net loss of 95 billion yen
was due in part to an estimated 10 billion yen in foreign
exchange losses from a plunge in the Indonesian rupiah.
(Nihon Keizai Shimbun 21-May-1998)


KYOCERA CORP: Parent Pre-tax Profit Fall 32%
--------------------------------------------
Kyocera Corp. Wednesday reported that parent pretax profit
fell 32% to 65.74 billion yen in the fiscal year ended
March 31. Sales slipped 6.2% to 491.74 billion yen,
operating profit plunged 38% to 51.42 billion yen and net
profit decreased 28% to 36.61 billion yen. On a group
basis, Kyocera said sales rose 1.5% to 725.31 billion yen,
operating profit dipped 24% to 95.51 billion yen and pretax
profit slipped 9.5% to 105.38 billion yen. Net profit,
however, grew 3.1% to 47.05 billion yen.
(Nihon Keizai Shimbun 21-May-1998)


MARUBENI CORP: Posts Parent Net Losses
--------------------------------------
Itochu Corp. (8001), Marubeni Corp. (8002) and Tomen Corp.
(8003) posted parent-only net losses in the year ended
March, according to earnings reports announced by nine
general trading houses Wednesday. The Asian currency crisis
and falling domestic stock prices are blamed for the red
ink. Marubeni had a net loss of 30.8 billion yen and
Tomen's net loss was 19.7 billion yen.
(Nihon Keizai Shimbun 21-May-1998)


MATSUSHITA ELECTRIC: Net Profit Declines 32%
--------------------------------------------
Matsushita Electric Industrial Co. saw its consolidated net
profit for the year ended March decline 32% to 93.6 billion
yen, company officials said Wednesday. But group net profit
only fell 8% to 126.9 billion yen if the one-off effects of
a 33.3 billion yen increase in its tax burden are excluded.
Group sales rose 3%, despite a 2% drop in sales of air
conditioners and other consumer electronics due to sluggish
consumer spending. Sales of information and communications
equipment and other industrial products rose 9%. Overseas
sales accounted for 51% of total sales, up four percentage
points year on year.

The company also said it plans to change its bylaws at the
June shareholders meeting to allow it to buy back up to 200
million of its own shares under certain conditions. The
company already announced plans to buy back up to 100
billion yen worth of shares by June 1999.
(Nihon Keizai Shimbun 21-May-1998)


NIPPON CREDIT BANK: Seeking Extension of Loan Repayment
-------------------------------------------------------
Japan's Nippon Credit Bank Ltd. (NCB) has asked domestic
insurance firms to stretch the due date of subordinated
loans to stabilise its capital bases, company officials
said Thursday. NCB, the smallest of Japan's three long-term
credit banks, requested repayment extention for part of its
subordinated loans totalling some 200 billion yen from
about 20 insurers, the officials said. At the same time,
the bank is seeking to switch about 40 percent of such
loans to lending from life and property insurers to ease
the burden of interest payment, they said. The move is
aimed at retaining enough subordinated loans, which can be
counted as capital under international rules.
(Agence France-Presse 21-May-1998)


NISSAN MOTORS: S&P Places Nissan Ratings on CreditWatch
-------------------------------------------------------
Standard & Poor's today placed its triple- 'B'- minus long-
term ratings and 'A-3' short-term ratings of Nissan Motor
Co. Ltd. and related entities on CreditWatch with negative
implications. The CreditWatch placement reflects
uncertainty as to the costs and ultimate benefits of
Nissan's newly announced restructuring plan. The plan calls
for drastic changes in business and financial strategies,
including the consolidation of domestic sales channels and
the company's product mix; strengthening of the company's
U.S. operations; reduction of fixed costs; and significant
debt reduction. However, Nissan will face considerable
challenges in pushing forward proposed reform measures,
given the currently difficult economic conditions in Japan,
the potential for various restructuring losses in the near
term, and the plan's reliance on successful asset sales.
(S&P CreditWire 21-May-1998)


NISSAN MOTORS: Unveils Reform Plan
----------------------------------
Nissan Motor slashed profit forecasts and unveiled a
drastic reform plan focusing on United States operations
and freezing all other new overseas projects. Nissan,
battered by a domestic sales decline in recent years, cut
group pretax profit forecasts by 81 per cent to just 4.7
billion yen (about HK$267 million). Japan's second-largest
car-maker warned it would suffer a painful 14 billion yen
net loss, reversing a 16 billion yen net profit the
previous year.

Nissan president Yoshikazu Hanawa said the firm would now
"place a priority on profitability to survive before
increasing sales," making a turnaround from its pursuit of
the giant Toyota. Mr Hanawa said the firm would "explore
co-operative business relations with other companies on a
global basis," including a possible tie-up with Daimler-
Benz.
(South China Morning Post 21-May-1998)


TOMEN CORP: Posts Parent Net Losses
-----------------------------------
Itochu Corp. (8001), Marubeni Corp. (8002) and Tomen Corp.
(8003) posted parent-only net losses in the year ended
March, according to earnings reports announced by nine
general trading houses Wednesday. The Asian currency crisis
and falling domestic stock prices are blamed for the red
ink. Marubeni had a net loss of 30.8 billion yen and
Tomen's net loss was 19.7 billion yen.
(Nihon Keizai Shimbun 21-May-1998)


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

KOHAP GROUP: To Sell Emtec Magnetics GmbH
-----------------------------------------
Kohap Group has decided to sell its Emtec Magnetics GmbH
based in Germany to a finance investment consortium between
Germany and the United Kingdom. Kohap, to this end, has
signed a letter of intent for sales of the company's
production facilities in Germany and other areas. The
consortium consists of Legal and General Venture Ltd. in
London, Apax Partners & Co. and DG Bank Group of Germany.  
Kohap and the consortium side have agreed not to reveal the
sale price and the payment will be brought in sometime next
month after deliberation of the value of the facilities.

The Emtec Magnetic which Kohap took over from Basf of
Germany in January last year is the world's largest
magnetic tape maker, with some 3,000 employees and 13
branches over the world. Its total assets reach the 834
million mark and it has seen some 1.3 billion in annual
sales.

In the meantime, Kohap also said it has been going ahead
with negotiations for sale of plants in Chingdao of China,
Indonesia and Mexico.
(Korea Times 21-May-1998)


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

MALAYSIAN AIRLINE: Government May Not Allow Restructuring
---------------------------------------------------------
The government will not allow a corporate restructuring of
Malaysian Airline System (MAS) Berhad if the exercise puts
minority shareholders at a disadvantage, Deputy Prime
Minister Anwar Ibrahim said Wednesday.

Speaking at a press conference here, Anwar said: "We do not  
oppose restructuring as a policy." He said companies can go
ahead with their restructuring as long as the government's
policy of not allowing restructuring at the expense of
minority shareholders is adhered to. The government is firm
on this policy, he said when asked if there was an
inconsistency in policy when the government announced end
of last year to freeze corporate restructuring.

Prime Minister Dr Mahathir Mohamad said in April the  
government, which has a golden share in the national
airlines, will not stop MAS from undertaking a
restructuring exercise of the company. The proposed
restructuring of MAS is said to enable its chairman Tajudin
Ramli to raise some US$200 million to settle his personal
debts.
(Asia Pulse 21-May-1998)


PACIFIC & ORIENT BHD: 49% Decline in Pre-tax Profit
---------------------------------------------------
Insurance group Pacific & Orient Bhd (P&O) registered a
48.5 percent decline in pre-tax profits to RM21.8 million
($US 5.74 million) for the six months ended March 31, 1998,
from RM42.4 million ($US11.15 million) previously. Group
turnover was down by 21.8 percent to RM103.5 million  
($US27.24 million) from RM132.9 million ($US34.97 million)  
previously. At company level, pre-tax profits rose to
RM27.4 million  ($US7.21 million) from RM617,000
($US162,300) in the previous corresponding period while
turnover rose to RM29.9 million from RM3 million due to
increase in dividend income received from its insurance
subsidiary.
(Asia Pulse 21-May-1998)


RENONG: Subsidiary Faber Sells Hotels to Pay for Investment
-----------------------------------------------------------
Malaysia's Faber Group plans to sell eight hotels and may
use some of the money to pay for cash-strapped parent
Renong's 50 per cent stake in national railway KTM, said a
Renong unit executive yesterday. It wants to sell all six
of its Sheraton hotels in Malaysia -- 2,463 rooms in all --
and Vietnam's Sheraton Hanoi and the Hilton Durban in South
Africa.
(The Straits Times 21-May-1998)


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

WG&A: To Sell Ships to Trim Debt and Excess Capacity
----------------------------------------------------
William, Gothong & Aboitiz (WG&A), the country's
biggest shipping company, will sell some of its ships this
year in order to trim its debts and cut down on excess
capacity. Aboitiz Equity Ventures president and chief
executive officer Jon Ramon Aboitiz said WG&A will sell the
remaining eight of the 10 vessels written off by the
company in 1997. WG&A will still have the biggest fleet of
around 30 vessels even after the sale. Aboitiz said WG&A
will use the dollar proceeds to pay off some of its foreign
obligations.

At end-1997, the country's leading shipping firm had a
total of P1.34 billion in maturing short-term obligations
along with P1.29 billion worth of long-term loans. WG&A
raised around $10 million from last year's sale of the
first two of the 10 ships written off by the company. The
vessels were sold to international shipping companies
operating in the region.

Aboitiz Equity owns 49.55 percent of Aboitiz Transport
Systems Inc., which has a 28.5 percent stake in WG&A.
(Manila Times 21-May-1998)


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

HONGKONG TEAKWOOD: 900 Lose Jobs at Singapore Factory
-----------------------------------------------------
An American-owned local furniture manufacturer is to
retrench more than 900 workers at its Kranji factory by the
end of this month. Yesterday, knockdown furniture maker
Hongkong Teakwood Works (S) Pte Ltd laid off 288 workers in
the first stage of a three-step retrenchment plan. It will
retrench the others on May 23 and on May 30. Most of those
affected are blue-collar workers, some of whom have worked
at the company for more than 20 years.
(The Straits Times 21-May-1998)


WBL CORP: Net Earnings Down 83% in First Half
---------------------------------------------
Slower luxury car sales and delays in contract projects in
Malaysia were two factors that pulled WBL Corp's net
earnings down 82.8 per cent to $2.72 million for the six
months ended March 31. Continuing a slide in the last
financial year, turnover shrank 18.1 per cent to $342.29
million. Higher interest charges and steeper depreciation
eroded pre-tax profit, as did its $425,000 share of losses
in an associate (from a gain of $6.22 million previously).
The company, Advanced Logic Research of the US, has since
been sold. With net profit of $2.72 million at half-time,
it looks improbable that WBL Corp would meet analysts'
expectations of a $40.8 million net gain for the full year.

Turnover contracted 43 per cent to $118.08 million because
of significantly lower car sales in Thailand, Taiwan and
Singapore, despite the launch of new models such as the
Jaguar XJ8. The divestment of its 51 per cent stake in
O'Connor's Corp Bhd was another reason.
(Singapore BusinessTimes 21-May-1998)


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

CHAROEN POKPHAND: Details on Group's Comeback Plans
---------------------------------------------------
Thailand's largest business group, Charoen Pokphand
(H.CPH), is driven by the vision of one man: group Chairman
Dhanin Chearavanont. He sees Charoen Pokphand as the
ultimate consumer-products company, marrying imported
technology to local market knowledge and staying one step
ahead of the competition. That strategy worked fine in
times of rapid economic growth. Today, however, the Asian
credit squeeze has brought the Charoen Pokphand Group a
heartbeat away from defaulting on its huge debts, reports
the latest edition of the Far Eastern Economic Review
published Thursday. Across the region - from China to
Thailand and Indonesia - the mammoth multinational is in
deep trouble, suggesting that it diversified and expanded
too rapidly, particularly in China.

Pragmatism has prompted the group to sell off marginal
units to raise more cash, as well as stakes in its retail
businesses. "Charoen Pokphand is resolved to safeguard its
core businesses," Dhanin said in a written reply to
questions put by the Review. In short, the group is
adopting a survivalist strategy.

But crunch time could be coming. On May 29, the group's
Hong Kong unit, Charoen Pokphand Pokphand, meets with a
group of creditors in an effort to stave off default on a
five-year, $100 million floating-rate note. The listed unit
announced a month ago that it couldn't meet creditors'
demands for repayment of the $92.8 million principal.

Although this is only a small portion of the group's total
debt, the issue is critical: Default will mean that the
Hong Kong subsidiary would no longer be a major vehicle for
the group to raise money offshore for its projects in
China, Indonesia and the U.S. (To date, Charoen Pokphand
Pokphand has borrowed roughly $1 billion in loans and debt
issues to help fund those projects.) Charoen Pokphand
Pokphand's shares suffered a steep fall in value - from
HK$3 to around HK$0.79 - on the initial news that it would
have trouble repaying the principal.
(Dow Jones Newswires  21-May-1998)


NAKORNTHON BANK: Denies Recapitalisation is Necessary
-----------------------------------------------------
Thailand's Nakornthon Bank said on Thursday there was no
immediate need for it to recapitalise because its capital
adequacy ratio met central bank requirements and it was
liquid.

"We just issued new shares early this year. New funds are
unnecessary and money from such proceeds coming to the bank
can be delayed to year-end," its president Thumnu Wanglee
told Reuters in an interview. He said he also expected the
bank to be able to announce a foreign partner around July,
a decision which has been delayed since the start of this
year.

Eight foreign banks had shown interest in buying stakes in
it and due diligence was now being undertaken by some of
the suitors, he said. Five banks had completed due
diligence. Early this year, Nakornthon Bank said it was in
negotiations with Bank of Nova Scotia over the Canadian
bank conducting due diligence ahead of taking up shares as
part of a capital increase. However, the talks have yet to
reach a conclusion.
(Reuters 21-May-1998)


UNI-DIRECT: Parent Announces Dissolution of Company
---------------------------------------------------
On March 20, 1998 the Uni-Direct's Co., Ltd. board
reached their decision in their first meeting of the year
to dissolve the Uni-Direct Company Limited, a subsidiary
company in which SE-ED held 99.93% stakes, whose company
registration with the Ministry of Commerce had already been
revoked since January 21, 1998. Such repeal was made
because the company ceased to have any transaction.  

The company's financial statement--which was audited by the
same auditor who conducted such audit for the parent
company--showed on December 31, 1997 the total asset of THB
3.37 million, total liabilities of THB 0.42 million and
total shareholders' equity of THB 2.95 million. After
closing the books for 1997, the bottom line showed THB 0.10
million in the red. As a parent company, SE-ED has already
been repaid in full for all their stockholding since March
25, 1998.  
(SET 20-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
copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-
mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.  Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $875 per month
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For
subscription information, contact Christopher Beard at
301/951-6400.

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