TCRAP_Public/980619.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 19, 1998, Vol. 1, No. 84

                           Headlines


C H I N A   &   H O N G   K O N G

ASIA, INC: Winding-Up Petition Presented
CLIMAX INTERNATIONAL: Reaches Agreement with 26 Banks
GALAXY POOL: Winding-Up Notice
HOP HING: Winding-Up Petition Presented
KARLTEX LTD: Creditors Meet June 25, 1998
LAI SUN: Sees Windfall from Sale of Furama Hotel Stake

I N D O N E S I A

PT CIPUTRA DEVELOPMENT: Faces Mammoth Forex Losses
PT SEMEN CIBINONG: Hires Financial Restructuring Consultant

J A P A N  

BANK OF TOKYO-MITSUBISHI: 1997 Loss Over 1.2 Trillion Yen
YAULT HONSHA: 100 Billion Yen Quarterly Loss Projected

K O R E A

BABYRA COMPANY: Concern is Bankrupt
HYOSANG GROUP: Retains Rothschild as Restructuring Advisor                               
KIA MOTORS: Deal struck to end Kia strike
NEW CORE: Wal-Mart Trademark Dispute Affects Deal

M A L A Y S I A

AYER MOLEK: Need Rescue & Restructuring
BEST WORLD: Not obligated to pay subsidiary's loan
BORN HEATERS: Winding-up Petition
EAK ENTERPRISE: Winding-up Petition
JURUMURNI SDN BHD: Winding-up Petition
SOUTH MALAYSIA: Adopting a Survival Approach

P H I L I P P I N E S

PHILIPPINE AIRLINES: Makes Plea to Suspend Debt Payments

T H A I L A N D

CATHAY CAPITAL: Shares on the FRA's Auction Block
NITHIPAT CAPITAL: Kim Eng Successful Bidder at FRA Auction
SBC WARBURG: Shares on the FRA's Auction Block
SRI DHANA: Thai Danu Bank Prevails at FRA Auction
TELECOMASIA CORP: Pressure Forces Lay-Offs
THAI NAM: Requests Extension for Developing Plan
THAI-GERMANY PRODUCTS: Outlines Survival Plan


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


ASIA, INC: Winding-Up Petition Presented
----------------------------------------
Au Yeung Pui Wah has presented a Petition to the High Court
of the Hong Kong Special Administrative Region for the
winding-up of Asia, Inc., Limited., pursuant to Chapter 32
of the Companies Ordinance. The petition was filed on June
5, 1998.  The Court identifies the matter as CW 391 of 1998
and has scheduled a hearing for July 15, 1998.


CLIMAX INTERNATIONAL: Reaches Agreement with 26 Banks
-----------------------------------------------------
Climax International, a listed stationary company in Hong
Kong, said it had reached an agreement on Tuesday with its
26 creditor banks to suspend repayment of about HK$600
million in outstanding debts until end of September. During
the next three months, Climax hopes to sell a number of
properties such as the Capital Building in Wan Chai (valued
at HK$130 million), and might move out of its 200,000 square
feet headquarters in Tai Po, he said. The company would
receive a HK$ 50 million cash facility from Standard
Chartered Bank and raise about $100 million from a right
issue. Climax International hopes to halve its 130% gearing
ratio by selling properties and conducting a right issue.

The company`s financial problem emerged last November when
several bank creditors demand immediate repayment and the
company failed to generate cash from property sales.


GALAXY POOL: Winding-Up Notice
------------------------------
The Hong Kong Standard of June 18 shows a notice which says
that a petition was presented to the High Court on April 24
by Leung Chi Man for the winding up of the above named and
that the petition was directed to be heard before the court
at 9:30 am on July 8.


HOP HING: Winding-Up Petition Presented
---------------------------------------
Ho Yat Man has presented a Petition to the High Court of the
Hong Kong Special Administrative Region for the winding-up
of Hop Hing Tsui King Lou Restaurant Limited, pursuant to
Chapter 32 of the Companies Ordinance. The petition was
filed on May 28, 1998.  The Court identifies the matter as
CW 373 of 1988 and has scheduled a hearing for July 15,
1998.


KARLTEX LTD: Creditors Meet June 25, 1998
-----------------------------------------
Creditors of Karltex Ltd., undergoing a Creditors' Voluntary
Liquidation, will meet on 25 Jun, 1998 for the purposes
provided for in Sections 228A, 241, 242, 243, 244 of the
Companies Ordinance.


LAI SUN: Sees Windfall from Sale of Furama Hotel Stake
------------------------------------------------------
Lai Sun Development, "a debt-ridden" property developer in
Hong Kong said it would reap HK$105 million from the sale of
non-core hotel interests in Vietnam to 52.2% held Lai Sun
Hotels International (LSH). It said it would sell a 49.9%
stake in Furama International Hoteliers, which indirectly
owns a 62.2% holding in the Furama Resort, Danang in
Vietnam, giving Furama International an effective 31% in the
resort. LSH said it would pay $3.9million for the equity and
the loan owing to FHE, amounting to HK$101.1 million(total
consideration to HK$105 million). Lai Sun Development said
the proceeds would go towards "general working capital
purposes."


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


PT CIPUTRA DEVELOPMENT: Faces Mammoth Forex Losses
--------------------------------------------------
PT Ciputra Development of Indonesia posted a loss of 271.8
billion rupiah(US$17.9 million) for the first quarter,
compared with the net profit of 31.2 billion rupiah a year
earlier. the company said the loss was mainly caused by its
capitalizing its foreign-exchange loss following the
rupiah's fall against the dollar since July.


PT SEMEN CIBINONG: Hires Financial Restructuring Consultant
-----------------------------------------------------------
Indonesian cement producer PT Semen Cibinong said it is
trying to restructure its long-term foreign debt with the
help of an unnamed financial consultant. The company has
been hard hit by high levels of foreign debt mounting to
US$910 million, of which 60% is hedged. It has switched to a
loss during the first quarter from a net profit for the year
earlier period, mainly because the company capitalized its
foreign exchange loss. It has also postponed the development
of cement factories in East Java`s town of Tuban and Myanmar
due to the regional economic crisis.


=========
J A P A N  
=========


BANK OF TOKYO-MITSUBISHI: 1997 Loss Over 1.2 Trillion Yen
---------------------------------------------------------
Bank of Tokyo-Mitsubishi Ltd. has posted a pretax loss of
1.212 trillion yen (US$8.46 billion) in the year ended March
31, compared with pretax profit of 87.16 billion yen the
year before due to increase write-offs of bad debts. The
bank said it wrote off 1.435 trillion yen in bad loans on a
parent basis in May before the government introduced a more
stringent standards for monitoring bank`s balance sheets on
April 1.

Bank of Tokyo-Mitsubishi`s problem loans totaled 1.229
trillion yen as of March 31, and the ratio reserves for the
risk loans was 61.84%.


YAULT HONSHA: 100 Billion Yen Quarterly Loss Projected
------------------------------------------------------
Yakult Honsha Co. estimated it will post a consolidated net
loss of 100 billion yen (US$697.7 million) for the year
ended March 31 as it registers a 107.7 billion yen
extraordinary loss to cover losses on financial dealings.
The company said the extraordinary loss will include 30.9
billion yen in securities losses and 76.8 billion yen in
reserves against future losses.


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


BABYRA COMPANY: Concern is Bankrupt
-----------------------------------
The Korean language Maeil Kyungje reports in its Business
News Briefs column that the baby clothing firm of Babyra
Company, an affiliate of B. Y. C. (Baek Yang Cotton - a
Korean textile company famous for underwear), went bankrupt.


HYOSANG GROUP: Retains Rothschild as Restructuring Advisor                               
----------------------------------------------------------
Hyosung Group, one of Korea's major business groups,
announced today that it has retained Rothschild Inc. to
advise  it regarding a financial restructuring and
divestitures.  Chairman Suck-rai Cho said, "Rothschild's
Wilbur Ross has successfully advised major companies around  
the world and thoroughly understands Korea.  We are
confident that he will help  us emerge from the country's
current crisis stronger than ever."  Mr. Ross  said, "As
Korea's leading nylon producer, fifth in the world, and with
strong  positions in polyesters and other products, Hyosung
qualifies for international  strategic and financial
investment."

Chairman Cho led a twenty-two member Korean delegation to
the May 25 - 27 Pacific Basin Economic council meeting and
was elected Chairman of the Council's Planning Committee.  
Hyosung is actively engaged in negotiations to divest
several operating units and other assets, including some of
its most prized units.  Its objective is to raise US$1
billion through these sales in the near future, and
eventually reduce its debt from 370% of equity at present  
to below 200% by 2002.  A first step was the sale of its 50%
interest in Hyosung-BASF to BASF.


KIA MOTORS: Deal struck to end Kia strike
-----------------------------------------
The Hong Kong Standard of June 18 says that according to a
union spokesman, management and labor unions at South
Korea's ailing Kia Motors have struck a temporary accord to
end a 16 day old strike by 14,000 workers.

The tentative agreement came after Kia agreed to pay half of
back waages or four months of salaries during marathon talks
involving representatives from the management, labor union
and the government.

The spokesman said the union would end the strike and resume
work only after a final agreement was signed.


NEW CORE: Wal-Mart Trademark Dispute Affects Deal
-------------------------------------------------
New Core, a Korean retail department store giant (which
according to a Korea Herald report is expected to receive
liquidation orders from its creditor banks) has been in
negotiations with the US based Wal-Mart regarding a deal for
entry into the Korea market.  However, another local
retailer that holds the Korean rights to the trademark "Wal-
Mart" is planning on opening three outlets, meaning that the
US retailer may not be allowed to use its own name in Korea.  

Kyungwon Enterprises registered its license to the name
Walmart in 1990, just as the US retailer was beginning to
branch out in foreign countries.  US Walmart and Kyungwon
have been locked in a trademark dispute since 1996.

The liquidation orders for New Core may be part of a list
being generated by all of the nation's 26 commercial banks
at the direction of the Financial Supervisory Commission
(FSC), Korea's newly created financial watchdog agency that
is spearheading corporate and financial-sector
restructuring.  The banks are to classify their business
loan-clients into three groups - normal, viable, and
nonviable.  Banks were further directed to stop extending
loans to those firms seeking relief loans if they are on
the list of nonviable companies.


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


AYER MOLEK: Needs Rescue & Restructuring
----------------------------------------
The Chairman of Ayer Molek Rubber Co Bhd (a plantation-based
company listed in the KLSE), reiterated that unless a rescue
and restructuring scheme was in place, the company was
likely to continue making losses.

Ayer Molek posted an after-tax losses of RM10.35million in
1997, compared to RM2.23million in 1996. RM6.01million of
the 1997 losses was attributable to a provision for
diminution in value of quoted investment in Australia.  
After 4 successive years of adverse results, the group's
losses now stands at RM18.88million, which is more than 10
times its paid-up capital.

In the group's revised proposed restructuring scheme, it
plans to shift its operations to more property-based.


BEST WORLD: Not obligated to pay subsidiary's loan
--------------------------------------------------
Best World Land Bhd, a property-based group listed in the
KLSE, said it is not obligated to repay debts of its wholly-
owned subsidiary, Best World Sdn Bhd.  There was no
corporate guarantee issued for the RM179.25million over-
draft and term loan secured by the subsidiary.  

Reasons for default were:

   1. reduced traffic flow into Plaza Best World affected
      business.

   2. closure of an anchor tenant resulted in individual
      tenants defaulting their rentals.

   3. unexpected increase in interest rates.

   4. the gloom in the property market and bad occupancy
      rate at Plaza Best World.

An accounting firm and a property consultant was appointed
to study how the finance and operations of the group can be
enhanced.


BORN HEATERS: Winding-up Petition
---------------------------------
Syarikat Steelcon Sdn Bhd (petitioner) on 12/5/98 petitioned
for the winding-up of Born Heaters (Malaysia) Sdn Bhd
(respondent).  The Petition is directed to be heard on July
31, 1998.


EAK ENTERPRISE: Winding-up Petition
-----------------------------------
Inrocon Safety Sdn Bhd (petitioner) on 21/5/98 petitioned
for the winding-up of Eak Enterprise Sdn Bhd (respondent).  
The Petition is directed to be heard on 15/7/98.


JURUMURNI SDN BHD: Winding-up Petition
--------------------------------------
Tru-Mix Concrete Sdn Bhd (petitioner) on 13/5/98 petitioned
for the winding-up of Jurumurni Sdn Bhd (respondent).  The
Petition is directed to be heard on 15/7/98.


SOUTH MALAYSIA: Adopting a Survival Approach
--------------------------------------------
South Malaysia Industries Bhd, a property-based group listed
in the KLSE, is adopting a survival approach in facing the
current difficult period following the weakened Ringgit and
stock market decline.

The Chairman of the company said that the group would be
monitoring its cash flow more closely.  Downsizing, cost
cutting and debt repayment would be the short and medium
term measures aimed by the company.


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


PHILIPPINE AIRLINES: Makes Plea to Suspend Debt Payments
--------------------------------------------------------
In the midst of a strike by 600 pilots and 5,000 crew
members, Philippine Airlines said that it would seek
official permission to suspend payments on debt. "We will
file with the Securities and Exchange Commission for the
approval of a rehabilitation plan," PAL executive vice
president for administrative services Manolo Aquino told
news sources Wednesday.  "This is being done really to
afford the company time, to protect itself from claims by
various creditors," he told ABS-CBN television here.

Another senior company official, Avelino Zapanta, told GMA
television station that "our debt payments could be delayed.  
The future of PAL "will depend on what will happen in the
talks with suppliers, creditor banks and unions," Aquino
told DZRH radio station when asked whether the airline
planned to fire more employees.  "If the rehabilitation is
not successful we can expect a deeper cut" in staff levels,
he added.  "We would like to seek the cooperation of our
staff.  We are close to the point that Philippine Airlines
would close down.  We need the cooperation of the banks to
revive the airline," the executive said.

Jose Antonio Garcia, PAL president and chief operating
officer told Reuters on Wednesday that PAL will ask the SEC
to appoint a committee to review its proposal to creditors.
"It's not a receiver, it's a rehab committee that will
review the plan that will be formulated and then monitor the
implementation of the plan," Garcia told Reuters, adding
that the plan "will most likely involve some sort of debt
suspension, restructuring," and noting that it will be up to
the committee to decide if a moratorium on debt payments
will be necessary.

The airline has about US$1.96 billion in debt and incurred a
record-setting net loss of 8.08 billion pesos (about US$200
million) in its last fiscal year to March.  PAL estimates it
has lost two billion pesos from the strike.

PAL creditor Philippine National Bank, which is also a
minority shareholder in the airline, said its exposure to
PAL "are secured" and expressed confidence they would be
paid eventually, according to a report by AFP.  "While the
prevailing difficulties of PAL would require rescheduling of
payments, the bank is confident that all of the bank's
exposure in PAL will be fully satisfied over time," PNB said
in a statement.


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


CATHAY CAPITAL: Shares on the FRA's Auction Block
-------------------------------------------------
The FRA will auction shares of Cathay Capital Ltd in the
next two weeks.


NITHIPAT CAPITAL: Kim Eng Successful Bidder at FRA Auction
----------------------------------------------------------
Kim Eng Holdings Ltd, the bid winner for Nithipat Capital
and Securities Ltd's shares, is negotiating with Thai
partners for investment participation in the Thai securities
company because of foreign ownership limits in Thai
securities firms.  In a press release issued Wednesday, the
Singaporean company, which operates Kim Eng Securities, said
that it was persuading Thai partners to take at least 51 per
cent of the 99.99 million shares successfully bid in
Nithipat Capital and Securities Ltd.  Kim Eng won the bid
for the shares auctioned by the Financial Sector
Restructuring Authority on Monday. It offered Bt127.99
million for the shares or approximately S$5.17 million based
on the exchange rate of Bt24.75 to a Singapore dollar.
Nithipat Capital was a securities arm of Nithipat Finance,
one of the 56 shutdown finance companies.

Kim Eng is scheduled to sign the share sale and purchase
agreement with the finance company on June 25. It assured
the shareholders that the acquisition will not have any
material effect on the earnings per share and net tangible
asset value per share of the Kim Eng Holdings Group for the
financial year ending March 1999.  No director or
substantial shareholders of the company have any interest,
directly or indirectly, from the acquisition.


SBC WARBURG: Shares on the FRA's Auction Block
----------------------------------------------
The FRA will auction shares of SBC Warburg Premier
Securities Ltd in the next two weeks.


SRI DHANA: Thai Danu Bank Prevails at FRA Auction
-------------------------------------------------
Sri Dhana DBS Securities Ltd, a securities subsidiary of Sri
Dhana Finance Plc. Thai Danu Bank, with support from its
partner Development Bank of Singapore, won the bid to
control a 99.99 per cent in the securities company.


TELECOMASIA CORP: Pressure Forces Lay-Offs
------------------------------------------
Telecomasia Corp Plc, the largest private fixed-line
operator in Thailand, is cutting staff as demanded by its
creditors and parent company Charoen Pokphand Group,
according to a report published in The Nation.  TA and its
subsidiaries currently employ about 7,300 people.

It remains unclear how many have to leave the telecom group,
a company source told The Nation, while relating that each
deparment has already been ordered to find out the number of
staff it actually needs to keep operations going amid the
current economic difficulties and report to the management
by August.

TA's president Dr Ajva Taulananda remains opposed to the
lay-off plan, The Nation said, relating his belief that
expenses could be cut further instead. Dr Vallobh
Vimolvanich, a director, has been given the responsibity to
reduce staff.


THAI NAM: Requests Extension for Developing Plan
------------------------------------------------
Thai Nam Plastic Public Company Limited, having been
notified by the SET concerning a possibility of being
delisted as a listed company in the SET and stipulating to
employ a financial advisor to develop a rehabilitation plan
to correct the causes that may lead to delisting, the
Company now asks the SET for a 4-month extension of time.

Thai Nam relates to the SET that in a preparation of the
said rehabilitation plan, it is in the process of
restructure the company's financial debt and the negotiation
with financial institutions who are the company's creditors.  
The negotiation remains unsettle now.  


THAI-GERMANY PRODUCTS: Outlines Survival Plan
---------------------------------------------
To maintain and improve its business situation, The Nation
reports, Thai-Germany Products Plc has decided to
significantly downsize its operations, particularly in terms
of employment.  In a report to the Stock Exchange of
Thailand, said its rehabilitation plan would be completed by
October.  Since the fourth quarter of last year it has
reduced its workforce to 600 from 800. It has also reduced
staff salaries, including those of the executives, including
optional Saturdays off.  The report said it had no plans to
increase salaries, except those of sales personnel, or its
workforce.  The firm also said it would try and increase
exports by 30 per cent and reduce credit terms by 30 days.


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
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