TCRAP_Public/980605.MBX 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      

      Friday, June 5, 1998, Vol. 1, No. 74

                    Headlines


C H I N A   &   H O N G   K O N G

CP POKPHAND:  Stock Exchange May Take Action
FORTUNA INTERNATIONAL: Loss Forces Shift of Focus
MARIA'S BAKERY: Maria's New Owners May Rehire Workers
MING FUNG GROUP: Hearing Set on Wind up of Ming Fung Units
TOP BALL PROPERTIES LIMITED: Winding up Notice


J A P A N  

ALL NIPPON AIRWAYS: Strike May Resume
HOKKAIDO TAKUSHOKU BANK: Shareholders to Meet in June
MAKITA CORP: Moody's May Cut Debt Rating
NIPPON STEEL CORP: Steel Firms Receive Cuts in Debt Rating


K O R E A

DAEWOO GROUP: Rumored to be on Government's Hit List
DONG AH CONSTRUCTION: Dong Ah Creditors Name New Chairman
HYUNDAI ELECTRONICS: Cuts Chip Production
HYUNDAI GROUP: Rumored to be on Government's Hit List
JINRO COORS: Takeover of Brewery Will be Finalized Soon
KWACHON INDUSTRY: Bankruptcy Filing Announcement
LG GROUP: Rumored to be on Government's Hit List
SK GROUP: Rumored to be on Government's Hit List
SAMSUNG GROUP: Rumored to be on Government's Hit List


M A L A Y S I A

CYGAL BHD: Applies to Strike Out Winding up Petition
HO WA GENTING: Unit Defaults on PB Securities Loan
SENHONG ELECTRICAL SDN BHD: Winding up Notice
UNITED ENGINEERS: To Sell 20% of Unit to Pay Debt


S I N G A P O R E

PC CORP: Defaults on Loan Repayment


T H A I L A N D

BANGCHAK PETROLEUM: Signs a US$150M Loan Agreement
BANGKOK LAND: Posts Losses for 1997
KRUNG THAI BANK: Share Sale to Ease Credit Crunch
THAI MILITARY BANK: Clarifies News on Recapitalization


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

CP POKPHAND:  Stock Exchange May Take Action
--------------------------------------------
The stock exchange has reserved its right to take action
against CP Pokphand for failing to disclose connected
transactions worth $129.3 million last year. The company
said yesterday certain subsidiaries advanced loans to a
firm ultimately controlled by two directors and to a joint
venture in which the firm was a partner.


FORTUNA INTERNATIONAL: Loss Forces Shift of Focus
-------------------------------------------------
Hong Kong-listed Fortuna International Holdings is shifting
its core business to food and beverages from electronic
products after the company posted a loss on the business
last year. The acquisition of the company's Firstone
Investment and Shenzhen Capstone Industrial by Guangnan
Hong (Group) is expected to be completed by end July. The
company said it might continue to dispose of some of the
electronic business during the year. Vice chairman Liang
Siaoqian said the group would soon announce a string of new
investment opportunities.


MARIA'S BAKERY: Maria's New Owners May Rehire Workers
-----------------------------------------------------
Edible oil manufacturer Hop Hing announced yesterday it
would purchase various assets of Maria's including fixtures
and equipment at its retail outlets for a new chain of bake
shops which are expected to reopen business next week under
the name Maria's Bakery.

Hop Hing said as many jobs as possible would be provided
but there's no concrete plans yet about cake coupons issued
by Maria's. However, Hop Hing would not take responsibility
for any liability that Maria's had incurred over the
redemption of its coupons by two cake shop chains which
were said to be planning to take Maria's to court for non-
payment of cakes bought with the coupons. Complaints
involving cakes worth over $3.5 million had been filed with
the Consumer Council which is urging businesses to consider
self-insurance schemes and self-indemnity funds, in order
to regain consumer confidence. Consumers are also urged to
weigh the pros and cons when buying into pre-payment
schemes.


MING FUNG GROUP: Hearing Set on Wind-up of Ming Fung Units
----------------------------------------------------------
According to provisional liquidator KPMG Peat Marwick, a
hearing to wind up the four firms in the Ming Fung Group
has been set for July 8 and negotiations were underway with
buyers for Ming Fung's business generally and for
individual licences and memberships. An informal meeting
with the clients of Ming
Fung will be held next week for the provisional liquidators
to report to the clients on the progress of the provisional
liquidation.

Ming Fung Group majority shareholder and managing director
Chan Kwong-hung was arrested on May 23 for alleged theft of
client funds to cover loss-making positions in his personal
futures trading.

The SFC applied to the court to wind up the four companies
under the group: stockbroking arm Chark Fung Securities,
futures trading arm Winton Commerce, leveraged foreign
exchange company Ming Fung Bullion, and its margin
financing company Kee Fung Sing International Finance.

The group has eight licences which would be valuable to
potential buyers interested in entering the local market.
There are three stock exchange licences, a commodities
trading licence, a futures licence, a futures clearing
licence, a gold dealer's licence and one for leveraged
foreign exchange trading.


TOP BALL PROPERTIES LIMITED: Winding up Notice
----------------------------------------------
A notice on the Hong Kong Standard of June 4 says that a
petition for the winding up of Top Ball Properties Limited
was presented to the High Court on the 20th day of May 1998
by Kwok Sau Ha of Flat C, 2nd Floor, Shanghai House, Tsuen
Wan Centre, Tsuen Wan, New Territories, Hong Kong. The  
petition was directed to be heard before the Court at 11:00
am on the 24th day of June 1998.


=========
J A P A N  
=========

ALL NIPPON AIRWAYS: Strike May Resume
-------------------------------------
All Nippon Airways Co. (9202 JP ) fell 17 yen to 485,
according to Bloomberg Japan Equity Movers of June 3.
Pilots of Japan's second-largest airline said they may
resume a strike next Tuesday over pay cuts if talks with
management fail.


HOKKAIDO TAKUSHOKU BANK: Shareholders to Meet in June
-----------------------------------------------------
The Kyodo News of June 4, 1998 reports that the final
shareholders meeting of collapsed Hokkaido Takushoku Bank
(Takugin) will take place June 26 at Makomanai Ice Arena,
bank officials said Thursday. There were some 40,000 total
Takugin shareholders as of the end of March. Last year's
shareholders meeting drew a record 581 people.

Bank executives will report on the recent agreement by
North Pacific Bank to take over Takugin's Sapporo
headquarters and 108 branches located in Hokkaido, and on
the transfer of its branches in Japan's largest main island
of Honshu to Chuo Trust and Banking Co., based in Tokyo.

Takugin became the first of Japan's top 10 nationwide banks
to go bankrupt after a heavy load of bad loans caused it to
suspend operations last November.


MAKITA CORP: Moody's May Cut Debt Rating
----------------------------------------
Makita Corp. (6586 JP ) fell 33 yen to 1,456, according to
Bloomberg Japan Equity Movers. Moody's Investors Service
Inc. said it may cut Makita's long-term debt ratings amid
concern about pressure from competition in foreign markets
and an expected weakening demand in Japan's power-tool
market.


NIPPON STEEL CORP: Steel Firms Receive Cuts in Debt Rating
----------------------------------------------------------
Moody's Investor Service has cut the debt ratings for four
prominent Japanese Steel producers and warned three more
may follow. The downgrades included the world's largest
steel-maker, Nippon Steel Corp. Nippon Steel had its long-
term debt rating cut to medium grade Baa1 from A3, Kawasaki
Steel Corp was sliced to Baa2 from Baa1 and the smaller
Tokyo Steel Manufacturing was dropped to junk bound status
Ba1 from Baa2. Sumitomo Metal Industries' rating was cut to
Baa3 from Baa2.

Moody's said it was reviewing its ratings for three more
steel-makers, NKK Corp., rated at Baa2, as well as Kobe
Steel and the smaller Daido Steel. It also cut to negative
its outlook for Nisshin Steel, in which Nippon Steel is the
largest stockholder, but kept its Baa2 rating unchanged.


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

DAEWOO GROUP: Rumored to be on Government's Hit List
----------------------------------------------------
The Financial Supervisory Commission (FSC), Korea's newly
created financial watchdog agency that is spearheading
corporate and financial-sector restructuring, issued
instructions to all of the nation's 26 commercial banks to
sort out troubled companies belonging to the five largest
family-owned chaebols for immediate liquidation. The June
3, 1998 announcement by Lee Hun-jai, chairman of the FSC,
called on banks to classify subsidiaries of the top five
chaebols into three groups - normal, viable, and nonviable.  

Banks were further directed to stop extending loans to
those chaebol firms seeking relief loans if they are on the
list of nonviable companies.  

According to the Korea Times, the five chaebols whose
subsidiaries are being targeted by this announcement
include: Hyundai, Samsung, Daewoo, LG, and SK.

Earlier reports suggested that the nation's banks had only
placed a small number of firms on the non-viable firm list
and had excluded affiliates of the top five chaebols. The
revised list is now due out on June 20.  


DONG AH CONSTRUCTION: Dong Ah Creditors Name New Chairman
---------------------------------------------------------
The Dong Ah Group's creditor banks named Korea's former
construction Minister Koh Byung-woo as the new chairman of
the financially troubled conglomerate's flagship company,
the Dong Ah Construction Industrial Company.  Dong Ah has
been under an extreme liquidity crunch since Korea's
financial crisis began late last year and has been kept
operating by syndicated cooperation loans of 940 billion
won ($670 million) from creditor banks.  

Mr. Koh replaces Mr. Choi Won-suk, who resigned after
taking responsibility for the group's problems.


HYUNDAI ELECTRONICS: Cuts Chip Production
-----------------------------------------
The Associated Press reports on June 3, 1998 that Hyundai
Electronics Co. temporarily stopped making computer memory
chips today to help ease a global supply glut and shore
up falling chip prices. The move by Hyundai, South Korea's
No. 2 chip maker, was expected to be followed by Samsung
and LG. The three South Korean firms supply 40 percent of
the world's memory chips, called Dynamic Random Access
Memory (DRAM) chips. Hyundai said its plant outside Seoul
will remain idle until next Tuesday. The company normally
produces 19 million 16-megabit DRAM chips and eight million
64-megabit DRAM chips a month, or 10 percent of the world
supply.


HYUNDAI GROUP: Rumored to be on Government's Hit List
-----------------------------------------------------
The Financial Supervisory Commission (FSC), Korea's newly
created financial watchdog agency that is spearheading
corporate and financial-sector restructuring, issued
instructions to all of the nation's 26 commercial banks to
sort out troubled companies belonging to the five largest
family-owned chaebols for immediate liquidation. The June
3, 1998 announcement by Lee Hun-jai, chairman of the FSC,
called on banks to classify subsidiaries of the top five
chaebols into three groups - normal, viable, and nonviable.  

Banks were further directed to stop extending loans to
those chaebol firms seeking relief loans if they are on the
list of nonviable companies.  

According to the Korea Times, the five chaebols whose
subsidiaries are being targeted by this announcement
include: Hyundai, Samsung, Daewoo, LG, and SK.

Earlier reports suggested that the nation's banks had only
placed a small number of firms on the non-viable firm list
and had excluded affiliates of the top five chaebols. The
revised list is now due out on June 20.  


JINRO COORS: Takeover of Brewery Will be Finalized Soon
-------------------------------------------------------
Foreign takeover of the ailing Korean beer maker, Jinro
Coors Brewing Co., will likely be decided around the end of
this month, officials said. The Korea Herald of June 4,
1998 reports that officials at the Jinro Group and its
creditor banks, Jinro's U.S. joint-venture partner Adolph
Coors Co. has recently said that it would put forth final
terms and conditions for its proposed takeover of the
Korean brewer June 21.

The U.S. brewing giant has reportedly reached a conclusion
on terms of investment in Jinro Coors and plans to present
them to creditor banks and its brokering institution Union
Bank of Switzerland in a meeting at Shilla Hotel, the
officials said. Representatives from Korean Development
Bank (KDB), main creditor bank for Jinro Coors, and other
creditor banks be invited to presentation, but none from
the Jinro Group, they said.

Jinro Coors has debts of 770 billion won ($550 million)
against 660 billion in capital.


KWACHON INDUSTRY: Bankruptcy Filing Announcement
------------------------------------------------
The District Court in Seoul placed an announcement in the
Korean language Maeil Kyungje newspaper that Kwachon
Industry Development Company had filed for bankruptcy.  The
address of the company is 60-1 Chungmuro3-ga, Chung-gu,
Seoul, and the president is Mr. Kim Won-jung.  Creditors
have until June 26th, 1998 to file their claims.


LG GROUP: Rumored to be on Government's Hit List
------------------------------------------------
The Financial Supervisory Commission (FSC), Korea's newly
created financial watchdog agency that is spearheading
corporate and financial-sector restructuring, issued
instructions to all of the nation's 26 commercial banks to
sort out troubled companies belonging to the five largest
family-owned chaebols for immediate liquidation. The June
3, 1998 announcement by Lee Hun-jai, chairman of the FSC,
called on banks to classify subsidiaries of the top five
chaebols into three groups - normal, viable, and nonviable.  

Banks were further directed to stop extending loans to
those chaebol firms seeking relief loans if they are on the
list of nonviable companies.  

According to the Korea Times, the five chaebols whose
subsidiaries are being targeted by this announcement
include: Hyundai, Samsung, Daewoo, LG, and SK.

Earlier reports suggested that the nation's banks had only
placed a small number of firms on the non-viable firm list
and had excluded affiliates of the top five chaebols. The
revised list is now due out on June 20.  


SK GROUP: Rumored to be on Government's Hit List
------------------------------------------------
The Financial Supervisory Commission (FSC), Korea's newly
created financial watchdog agency that is spearheading
corporate and financial-sector restructuring, issued
instructions to all of the nation's 26 commercial banks to
sort out troubled companies belonging to the five largest
family-owned chaebols for immediate liquidation. The June
3, 1998 announcement by Lee Hun-jai, chairman of the FSC,
called on banks to classify subsidiaries of the top five
chaebols into three groups - normal, viable, and nonviable.  

Banks were further directed to stop extending loans to
those chaebol firms seeking relief loans if they are on the
list of nonviable companies.  

According to the Korea Times, the five chaebols whose
subsidiaries are being targeted by this announcement
include: Hyundai, Samsung, Daewoo, LG, and SK.

Earlier reports suggested that the nation's banks had only
placed a small number of firms on the non-viable firm list
and had excluded affiliates of the top five chaebols. The
revised list is now due out on June 20.  


SAMSUNG GROUP: Rumored to be on Government's Hit List
-----------------------------------------------------
The Financial Supervisory Commission (FSC), Korea's newly
created financial watchdog agency that is spearheading
corporate and financial-sector restructuring, issued
instructions to all of the nation's 26 commercial banks to
sort out troubled companies belonging to the five largest
family-owned chaebols for immediate liquidation. The June
3, 1998 announcement by Lee Hun-jai, chairman of the FSC,
called on banks to classify subsidiaries of the top five
chaebols into three groups - normal, viable, and nonviable.  

Banks were further directed to stop extending loans to
those chaebol firms seeking relief loans if they are on the
list of nonviable companies.  

According to the Korea Times, the five chaebols whose
subsidiaries are being targeted by this announcement
include: Hyundai, Samsung, Daewoo, LG, and SK.

Earlier reports suggested that the nation's banks had only
placed a small number of firms on the non-viable firm list
and had excluded affiliates of the top five chaebols. The
revised list is now due out on June 20.  


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

CYGAL BHD: Applies to Strike Out Winding up Petition
----------------------------------------------------
Cygal Bhd, listed on the KLSE, applied to the Kuala Lumpur
High Court on March 21 to strike out the petition filed by
Syarikat Lian Ping Enterprise Sdn Bhd to wind-up Cygal over
non-payment of RM3.2mil in interior design works.

Cygal's executive director said a dispute has arisen
between Cygal and the developer of the Grand Bluewave Hotel
for amounts due to the various parties that undertook the
interior fitting job and that the dispute is being
arbitrated. He also said the company has a strong case to
set aside the petition based on several grounds - failure
by Syarikat Lian Ping to adhere to provisions for
arbitration provided in the contract.

The executive director of Cygal also further said that the
company is solvent and recently announced its preliminary
profits of RM9.4mil. A hearing was set for June 9, 1998.


HO WA GENTING: Unit Defaults on PB Securities Loan
--------------------------------------------------
A Ho Wah Genting unit has defaulted on a 4.54 million
Malaysian ringgit (S$1.9 million) payment to PB Securities
Sdn Bhd. According to Singapore BusinessTimes of June 4,
1998, Ho Wah Genting said yesterday that the amount was due
to contra losses incurred by Ho Wah Genting Capital Sdn
Bhd's clients when the stock market crashed.


SENHONG ELECTRICAL SDN BHD: Winding up Notice
---------------------------------------------
Kenwood Electronics (M) Sdn Bhd (petitioner) has petitioned
for the winding-up of Senhong Electrical Sdn Bhd
(respondent) on May 2, 1998. A hearing shall be set for
July 15, 1998.


UNITED ENGINEERS: To Sell 20% of Unit to Pay Debt
-------------------------------------------------
United Engineers (Malaysia) Bhd, Malaysia's largest
construction company, is close to finalising a sale of
about 20% of its toll-expressway unit to raise funds to
repay debt.

The company's managing director Ramli Mohamad indicated
after the company's annual shareholders meeting yesterday
of the need to dispose a minimal amount of assets to reduce
debt. He declined to say how much UEM would get for its
stake in Projek Lebuhraya Utara-Selatan (Plus) and did not
say who would buy the stake. Mr Ramli also said the company
plans to raise funds through other instruments.

UEM's move came amid Malaysia's stock market slump and
rising interest rates, which made it more costly for the
company to repay its M$2.8 billion of debt, most of which
were short-term and had to be restructured.

UEM's situation underscores the problems faced by
construction companies in Asia, where expansion plans came
to a halt with surging interest rates, currency slides and
drying up of new projects as governments cut spending.

UEM's debt increased after it bought in a 32.6% stake in
Renong, its parent company for $2.34 billion in November,  
a deal perceived by investors as a bailout of Renong. To
pay for the purchase, UEM took on short-terms, some which
are coming due. It will need an increase in toll rates to
ease the strain in its finances and also to woo potential
buyers of its toll unit. Plus was due to receive an
increase in its toll rate on January 1, but the company is
prepared for not receiving a toll increase this year, Mr
Ramli said, and he thought the company's financial position
could not be sustained beyond this year.


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

PC CORP: Defaults on Loan Repayment
-----------------------------------
PC Corp has missed a loan repayment of US$8 million (S$13.4
million), believed to be the second installment of a US$70
million bank loan, according to Singapore BusinessTimes of
June 4, 1998. This is said to be the first time the
personal computer maker has failed to repay a bank loan on
time, a sign that it is facing a cashflow mismatch.

A company spokesman confirmed last week that IPC paid the
first installment of US$8 million last December, but
declined comment on the status of other loans.

He said: "As part of our on-going business, we would
restructure our loans and banking facilities from time to
time. We have done so in the past, and are doing so now.
The details, terms and conditions are confidential and have
not been finalised yet. All this is done in the best
interests of the company."

The US$8 million was due on March 31. Bankers said the loan
is being rolled over on an overnight basis at a pre-agreed
default rate of prime plus 4 per cent -- about 11.5 per
cent currently.


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

BANGCHAK PETROLEUM: Signs a US$150M Loan Agreement
--------------------------------------------------
The Bangchak Petroleum Public Company Limited reports that
it has successfully completed a US$150 million, (Baht 6,000
million) syndicated loan agreement. Coordinating arrangers
of this loan facility are ABN AMRO Bank N.V., BA Asia
Limited, The Bank of Nova Scotia Limited, Barclays Capital,
Standard Chartered Bank and Sumitomo Bank. The lending term
is for one year at LIBOR+0.90% in exclusion of the
arranging expenses.

The transaction attracted subsciptions of US$220 million,
representing a 45% over subscription.

The proceeds will be used to substitute for Thai Baht
working capital in financing the company's import and to
benefit the company's liquidity in Thailand during this
period.


BANGKOK LAND: Posts Losses for 1997
-----------------------------------
Bangkok Land, Thailand`s biggest property developer ,
posted a big losses of 17.7 billion baht (HK$3.27 billion)
last year. The company said much of the loss was due to
sharp fall in the value of baht and the declining consumer
demand. Analysts believe the loss was an indication of the
structural problem in the Thailand property sector.


KRUNG THAI BANK: Share Sale to Ease Credit Crunch
-------------------------------------------------
Bank of Thailand governor said that state-controlled Krung
Thai Bank plans to sell shares to offset mounting debts and
help its investment banking unit, Krungthai Thanakit, take
over seven seized finance companies. A share sales would
help ease a national credit crunch.

The governor said that a specific plan had not been set,
refuting Thai newspaper reports that Krung Thai aims to
raise as much as 70 billion baht, or two thirds of its
enlarged capital, by selling shares and debt, and that part
of the money would come from a long-term loan from the
Asian Development Bank, which would also help Krung Thai
find equity investors.

Standard & Poor's Corp estimates that about 35% of loans by
Thailand's 16 commercial banks will soon be delinquent by
at least 3 months, with defaults triggered by a currency
devaluation and the country's recession.

A loan for Krung Thai might be easier to arrange. Otherwise
Krung Thai would have to compete with other lenders. Siam
Commercial Bank last week said it planned to raise at least
34 billion baht by selling shares and another US1 billion
by selling bonds.

Just four months ago Krung Thai raised 20 bilion baht
selling shares, mostly to the government, at which time its
president Mr Sirin said that the capital increase would be
enough for the next five years and that foreigners would
not be allowed to increase their stake beyond the then
17% level. Krung Thai's biggest rivals, Bangkok Bank and
Thai Farmers Bank, raised about $2 billion between them in
April in private sales to foreign institutional investors
and the 2 banks are now 49% foreign-owned.

Standard & Poor's director of financial institutions
ratings remarked that there are a lot of markets for
foreign investors to invest in, and people's perception of
the Thai government is very important to investment
decisions. He also said that "there is an outstanding issue
as to whether Bangkok Bank or Thai Farmers Bank may need to
raise more capital in the future."


THAI MILITARY BANK: Clarifies News on Recapitalization
------------------------------------------------------
In connection with a news report published in the June 3,
1998, Krungthep Thurakij, The Thai Military Bank has
announced that it has not considered or set a time frame
for its recapitalization. Should the bank have a definite
recapitalization plan that has been approved by our board
of directors, we will immediately inform the Stock Exchange
of Thailand.


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.

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