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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, June 18, 1998, Vol. 1, No. 83

                    Headlines


C H I N A   &   H O N G   K O N G

CLIMAX INTERNATIONAL: Banks Stall Payments
CRYSTAL JADE INVESTMENT LTD: Winding-up Petition
KWONG FUNG DEVELOPMENT LIMITED: Winding-up Petition
MILLENNIUM GROUP: Sells Stocks Following $254m Loss
MING FUNG GROUP: SFC Lifts Ming Fung Group Restriction
PRIMASIA EQUITIES LIMITED: Notice of Securities Trading
PRO-KNIT MANUFACTURING LTD: Winding-up Petition
ZIP EXPRESS WORLDWIDE: Winding-up Petition


I N D O N E S I A

GARUDA INDONESIA: Debt Conversion into Government Capital


J A P A N  

ALL NIPPON AIRWAYS: Pilots Threaten to Resume Strike
BROTHER INDUSTRIES: Downgraded to 'Average'
LONG TERM CREDIT BANK OF JAPAN: Share Issue to Prop up LTCB
MARUSHOKOSAN: Unlisted Japanese Firm Goes for Broke
SUMITOMO TRUST:  Moody's to Review Sumitomo's Rating
YAMAICHI SECURITIES: Insurance Companies May Sue Broker


K O R E A

DONG AH: On List of Builders to Be Investigated
HOUSING & COMMERCIAL BANK: Housing Bank Seeks Joint Deal
NAMSUNG MACHINERY COMPANY: Company's Stock Sales Suspended
SANNAEDEUL-INSUE COMPANY: Files for Court Receivership


M A L A Y S I A

JANLEE-TRADE (M) SDN BHD: Winding-up Petition
JURONG JAYA SDN BHD: Voluntary Winding-Up
OMEGA SECURITIES: Under Investigation by Regulator
ORIENTAL FRESH FRUIT SDN BHD: Winding-up Petition
SEGAR MEGAH (M) SDN BHD: Winding-up Petition
SUNGEI RENGIT LITERAGE SDN BHD: Winding-up Petition
WAY SOON CONSTRUCTION SDN BHD: Winding-up Petition


P H I L I P P I N E S

PHILIPPINE AIRLINES: Airline Faces Risk of Debt Default


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

CLIMAX INTERNATIONAL: Banks Stall Payments
------------------------------------------
The SCMP of June 17 says that debt-ridden stationery maker
Climax International has signed a standstill agreement with
creditor banks for six months from March 31, in which its
second largest shareholder, United Pacific Industries, will
deposit $50 million as working capital.


CRYSTAL JADE INVESTMENT LTD: Winding-up Petition
------------------------------------------------
The Hong Kong Standard of June 17 shows a notice which says
that a petition was presented to the High Court on June 11
by Ng Kai Tao for the winding up of Crystal Jade Investment
Limited, and that the petition was directed to be heard
before the court at 11:00 am on July 15.


KWONG FUNG DEVELOPMENT LIMITED: Winding-up Petition
---------------------------------------------------
The Hong Kong Standard of June 17 shows a notice which says
that a petition was presented to the High Court on June 12
by Li Chu for the winding up of Kwong Fung Development
Limited, and that the petition was directed to be heard
before the court at 11:00 am on July 15.


MILLENNIUM GROUP: Sells Stocks Following $254m Loss
---------------------------------------------------
The Millennium Group said this year it will cut its
portfolio of securities after a $254 million loss last year
from plunging values of short term investments.  Millennium
chief executive Savio Kwong said about 80% of the portfolio
had been sold and there was no intention to build it up
again in the foreseeable future. Both the chemical and
transportation businesses continued to suffer losses in
1997. Mr. Kwong said he planned to dispose its loss making
operation gradually and scale down its investment portfolio
to concentrate on its core business. The loss has cost the
group $249.93 million, including exceptionals before tax in
the year to December. It is concentrating on its cigarette
business, after acquiring Worldwide Golden Leaf in April.


MING FUNG GROUP: SFC Lifts Ming Fung Group Restriction
------------------------------------------------------
According to the SCMP of June 17, the SFC has withdrawn
restriction notices issued to three firms in the failed
Ming Fung Group: Chark Fung Securities, Winton Commence and
Ming Fung Bullion, which will allow provisional liquidators
to prepare for the distribution of assets to clients.

A Hong Kong Standard article on the same subject also
elaborates that under the notices, the three firms were
prohibited from operating without prior approval from SFC.


PRIMASIA EQUITIES LIMITED: Notice of Securities Trading
-------------------------------------------------------
A notice put up by the above named company on the Hong Kong
Standard of June 17 says that Primasia Equities Limited and
its dealing directors Mr. Tran Tri Luong and Mr. Yip Shui
Key ceased trading as dealers in securities as from June 1,
1997 and March 2, 1998 respectively. Any client of the
company who believes that an amount is owing to him that
has arisen out of the company's business of dealing in
securities should communicate his claim in writing without
delay but no later than 10 days from June 17, 1998 to
Primasia Equities Limited and to the SFC.


PRO-KNIT MANUFACTURING LTD: Winding-up Petition
-----------------------------------------------
The Hong Kong Standard of June 17 shows a notice which says
that a petition was presented to the High Court on May 27
by Chung Gin Hung for the winding up of Pro-Knit
Manufacturing, and that the petition was directed to be
heard before the court at 11:00 am on July 8.


ZIP EXPRESS WORLDWIDE: Winding-up Petition
------------------------------------------
The Hong Kong Standard of June 17 shows a notice which says
that a petition was presented to the High Court on June 12
by Chan Yuen Yi for the winding up of Zip Express Worldwide
(HK) Company Limited, and that the petition was directed to
be heard before the court at 11:00 am on July 15.


=================
I N D O N E S I A
=================

GARUDA INDONESIA: Debt Conversion into Government Capital
---------------------------------------------------------
Asia Pulse reports Garuda Indonesia's new CEO Robby Djohan
said the airline was planning to have its debt at state
owned banks converted into government capital
participation, Republika daily reported Tuesday.

He said he did not know how much exactly Garuda's debt was.
State Enterprise Empowerment Minister Tanri Abeng indicated
that the Garuda debt had reached $US200 million. He said
Garuda was facing a difficult situation as this company did
not have any fresh funds to repay the debt.


=========
J A P A N  
=========

ALL NIPPON AIRWAYS: Pilots Threaten to Resume Strike
----------------------------------------------------
All Nippon Airways Co. (9202 JP ) fell 4 yen to 461,
reports Bloomberg. Pilots of All Nippon Airways Co.,
Japan's second-largest airline, said they will resume a
partial strike next Tuesday if their dispute over a 15
percent pay cut isn't resolved.


BROTHER INDUSTRIES: Downgraded to 'Average'
-------------------------------------------
Brother Industries Ltd. (6448 JP ) fell 13 yen to 503,
reports Bloomberg. The sewing machine maker was downgraded
to "average" from "above average" by analyst Nobuaki
Okimoto at Nikko Research Center. The recommendation was
released after the markets closed.


LONG TERM CREDIT BANK OF JAPAN: Share Issue to Prop up LTCB
-----------------------------------------------------------
An article on the SCMP of June 17 says that Long Term
Credit Bank of Japan plans to strengthen its capital
through a new preference share issue. A spokesman said the
bank plans to propose at its general shareholders' meeting
next week that it revise company articles to raise the
ceiling of its preference shares by 240 billion yen in
value. Preference shareholders have a higher claim than
other stock holders on assets if a company collapses.

Bloomberg reports shares of Long-Term Credit Bank of Japan
Ltd. plunged to their lowest ever amid fears its bad debts
could be worse than expected and speculation Moody's
Investors Service will cut its rating on the stock.


MARUSHOKOSAN: Unlisted Japanese Firm Goes for Broke
---------------------------------------------------
An Bloomberg article on the Hong Kong Standard of June 17
says that, according to Teikoku Databank, a private
research institute, Marushokosan, an unlisted Tokyo-based
real estate company, capitalised at 30 million yen and with
liabilities totalling 167 billion yen, yesterday filed for
bankruptcy with Tokyo Distict Court.

Traders said the news strengthened the market's conviction
that more bankruptcies are going to come out of the
woodwork and weighed on real estate shares.

Founded in 1981, Marushokosan posted 45.2 billion yen in
revenue in 1989, at the height of Japan's speculative
property bubble economy. The company's financial standing
was damaged in 1991, however, after its president was
indicted for fraud.


SUMITOMO TRUST:  Moody's to Review Sumitomo's Rating
----------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Service Inc. has placed under review the rating of
the Sumitomo Trust & Banking Co. for a possible downgrade.


YAMAICHI SECURITIES: Insurance Companies May Sue Broker
-------------------------------------------------------
Because of a report that failed broker Yamaichi Securities
cannot repay Y43bn (US$294m) of subordinated loans from
insurance companies, these same companies may sue the
broker for concealing losses, reports the Financial Times.
The companies have not yet filed a formal suit.


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

DONG AH: On List of Builders to Be Investigated
-----------------------------------------------
The Fair Trade Commission, a Korean government body that
regulates market practices, plans to investigate whether
large construction companies are paying debts to smaller
subcontractors. According to the Korea Times, the
probe is to begin on June 29 and will focus on 40 large
firms, including the Dong Ah Construction Industry Company.  
There are currently reports of many complaints about
builders delaying payment to subcontractors due to
liquidity problems. Under current Korea fair trade
practices regulations, prime contractors are obliged to pay
construction bills within 60 days of completion of the
construction.  

Dong Ah has been previously listed as a conglomerate whose
viability is being rigorously evaluated by creditor banks
under the direction of the Financial Supervisory
Commission, Korea's newly formed fiscal watchdog
organization. According to earlier reports in the Korea
Herald, Dong Ah has so far managed to survive its current
financial crisis with cooperative syndicated loans
amounting to nearly 1 trillion won ($714 million) from
Korean banks.


HOUSING & COMMERCIAL BANK: Housing Bank Seeks Joint Deal
--------------------------------------------------------
Housing & Commercial Bank, which is South Korea's second
biggest commercial bank in terms of deposits, plans to
raise as much as US$400 million by selling a stake to
foreign investors, seeking a joint venture with foreign
financial institutions and focus on retail banking. A
spokesman said negotiations are underway and hopefully a
conclusion will be reached within a couple of months.


NAMSUNG MACHINERY COMPANY: Company's Stock Sales Suspended
----------------------------------------------------------
According to Korean language Maeil Kyungje, as of June
16th, 1998, the Korean Association for Securities Business
suspended the sales of Namsung Machinery Company's stock as
it was confirmed that the company filed for bankruptcy on
June 12, 1998.


SANNAEDEUL-INSUE COMPANY: Files for Court Receivership
------------------------------------------------------
According to a report in the Korean language Maeil Kyungje,
the Suwon District Court has announced that Sannaeduel-
Insue Company has applied for court receivership. The
Sannaeduel-Insue Company's address is 39-2 Torip-ri,
Paeksa-myun, Ichon-shi, Kyunggi-do, and the president is
Mr. Lee Ki-duk. Creditors are advised to report their debts
by July 6, 1998.


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

JANLEE-TRADE (M) SDN BHD: Winding-up Petition
---------------------------------------------
Sothinathan A/L Asaipillai (petitioner), on 29/5/98
petitioned to wind-up Janlee-Trade (M) Sdn Bhd
(respondent). The petition is directed to be heard on
8/10/98.


JURONG JAYA SDN BHD: Voluntary Winding-Up
-----------------------------------------
The members of Jurong Jaya Sdn Bhd, on 12/6/98 resolved to
wind-up the company voluntarily.


OMEGA SECURITIES: Under Investigation by Regulator
--------------------------------------------------
Malaysia's securities regulator said it is investigating
"various deals" conducted by failed brokerage Omega
Securities Sdn Bhd.

On Friday, the Asian Wall Street Journal reported that the
Securities Commission was probing allegations that
politician-businessman Soh Chee Wen used nominees to buy
the brokerage's parent, Omega Holdings Bhd, which would
break a law forbidding the ownership of more than one
brokerage without the government's approval.

Mr Soh, who is the chief executive officer of engineering
group Promet Bhd and Uniphoenix Corp, denied that he was
the buyer of Omega and that he only helped to put the
transaction together.


ORIENTAL FRESH FRUIT SDN BHD: Winding-up Petition
-------------------------------------------------
Sime Rengo Packaging (M) Sdn Bhd (petitioner), on 10/4/98
petitioned for the winding-up of Oriental Fresh Fruit Sdn
Bhd (respondent). The petition is directed to be heard on
10/7/98.


SEGAR MEGAH (M) SDN BHD: Winding-up Petition
--------------------------------------------
RHB Finance Bhd (petitioner), on 4/4/98 petitioned for the
winding-up of Segar Megah (M) Sdn Bhd (respondent). The
petition is directed to be heard on 28/7/98.


SUNGEI RENGIT LITERAGE SDN BHD: Winding-up Petition
---------------------------------------------------
HongKong Bank Malaysia Bhd (petitioner), on 1/6/98 made a
winding-up order against Sungei Rengit Literage Sdn Bhd
(respondent).


WAY SOON CONSTRUCTION SDN BHD: Winding-up Petition
--------------------------------------------------
Konmark Contract Services Sdn Bhd (petitioner), on 14/5/98
petitioned for the winding-up of Way Soon Construction Sdn
Bhd (respondent). The petition is directed to be heard on
14/8/98.


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

PHILIPPINE AIRLINES: Airline Faces Risk of Debt Default
-------------------------------------------------------
The Philippine Airlines (PAL) plans to inform the
Securities and Exchange Commission that it plans to suspend
debt payments, according to a report in the Asian Wall
Street Journal. PAL owes about 1,000 creditors (including
banks and aircraft lessors) about $2 billion. A PAL
official was cited as saying that although the PAL hasn't
missed any payments yet, its financial health has
deteriorated to the point where a moratorium is necessary.  
In the year ending March 31, 1998, PAL posted a 8.08
billion peso loss which is triple its lost for the year
ending 1997.

Most of PAL's 620 pilots went on strike on June 5 to
protest a management policy that mandates retirement for
pilots who have reached 20 years of service or have flown
20,000 hours, regardless of age. Last week, PAL fired its
600 striking pilots and on Monday it laid off 5,000 ground
staff and flight attendants. Since the airline strike
began, PAL has lost more than 2 billion pesos ($47.2
million).

RP Business Digest reports Philippines President-elect
Joseph Estrada said yesterday he plans to sell the
government's stake in Philippine Airlines. He said that the
government's stake in PAL is now about 28 percent and he is
planning to privatize it as soon as he takes office on June
30.

Estrada said one reason for selling the airplane is that
government's representatives on PAL board have perks from
the airline, including fat allowances and free plane rides
for them and their families.


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,
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