TCRAP_Public/980630.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      

      Tuesday, June 30, 1998, Vol. 1, No. 91

                    Headlines


C H I N A   &   H O N G   K O N G

CP POKPHAND: CP Pokphand Gives Pledge for Repayment
CARON CO-OPERATIVE BUILDING: Members' Voluntary Liquidation
CHAPEL HILL LTD: Companies Winding-up
CHINA GLORIOUS LIMITED: Winding-up Order
CHUN FOO LIMITED: Winding-up Order

FOOK WING INVESTMENT COMPANY LTD: Companies Winding-up
GUI JIANG FOODSTUFFS: Companies Winding-up
HONG KONG GERBERA TRADING LTD: Companies Winding-up
KNJ ENTERPRISES LTD: Companies Winding-up
MOTEC (FAR EAST) LTD: Winding-up Petition

NEWBOARD INVESTMENTS: Winding-up Order
OCEAN FORTUNE SHIPPING PTE LTD: Notice to Creditors
PAN-WIN REALTY AGENCY LTD: Companies Winding-up
PROFIT STAR INDUSTRIES LTD: Meeting of Creditors
RHINE HOLDINGS: Rhine Share Deal Dropped

SALVIC LIMITED: Winding-up Order
SHAM KINS ENTERPRISES LTD: Companies Winding-up
TECHIFORD: Notice of Members' and Creditors' Meetings


J A P A N  

ALL NIPPON AIRWAYS: Reports Net Loss
DAIMARU: Says Staff Will Be Compensated
JAPAN AIRLINES: Reports Wider Losses
LONG TERM CREDIT: Officials Discuss LTCB-Sumitomo Merger
YAMAICHI SECURITIES: Yamaichi Investors Get Formal Apology


K O R E A

CHUNGCHONG BANK: To Be Taken Over by the Hana Bank
DAECHANGJIN: Creditor Reconciliation Procedure Started
DAEDONG BANK: To Be Taken Over by the Kookmin Bank
DONGNAM BANK: Taken Over by Housing and Commercial Bank
DONGHWA BANK: To Be Taken Over by the Shinhan Bank

ICINOO COMPANY: Creditor Reconciliation Procedure Started
JCP COMPANY: Creditor Reconciliation Procedure Started
KYUNGKI BANK: To Be Taken Over by the Koram Bank
SAEHAN MERCHANT BANKING CORP: Saehan's Suspension Extended
SHINHWA TEXTILE: Creditor Reconciliation Procedure Started


M A L A Y S I A

ARENSI'S ULTRAMIX CONCRETE: Cement Firms Default on Debts
BELTON PROPERTIES SDN BHD: Winding-up Petition
CHONG YAH TRADING SDN BHD: Voluntary Winding-up
CYGAL BHD: Petition Thrown Out
EVER MODERN SDN BHD: Voluntary Winding-up

GEMTEX ABRASIVES (M) SDN BHD: Winding-up Petition
GOLDEN PHAROS BHD: Share Trading Suspension
HASMAN EDAR SDN BHD: Voluntary Winding-up
HUSIN RASHID CONSTRUCTION SDN BHD: Winding-up Petition
KAGUM PERTAMA SDN BHD: Voluntary Winding-up

KARTIKA KENCANA SDN BHD: Winding-up Petition
KUMPULAN FIMA BHD: Malaysian Firm Hit by Stock Losses
PINANG U-LI ENGINEERING SDN BHD: Winding-up Petition
TRYOPRECISION (M) SDN BHD: Winding-up Petition
UNIPHOENIX CORP BHD (UCB): Civil Action Restrained

WIL-SUPPLIES SDN BHD: Winding-up Petition
Y.M. LEONG SDN BHD: Voluntary Winding-up


P H I L I P P I N E S

PHILIPPINE AIRLINES: Dismissed PAL Pilots End Strike


T H A I L A N D

AYUDHYA DEVELOPMENT LEASING: Lifts Paid-up Capital to B400m
BANGKOK RUBBER: To Cut Stake in Subsidiaries
NIKKO MAHANAKORN: Creditors of Hotel Turn to Court
PHATRA SECURITIES: Phatra May Have Violated Regulations
TOTAL ACCESS: Close to Agreeing Terms with Creditors


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

CP POKPHAND: CP Pokphand Gives Pledge for Repayment
---------------------------------------------------
According to the SCMP of June 27, troubled conglomerate CP
Pokphand has vowed to repay its US$1 billion of debt within
a reasonable time.

The Hong Kong-listed arm of the Thailand-based empire said
yesterday it had held confidential discussions with
floating-note holders on repayment and that the discussions
would continue during the next few months. Three sets of
floating-rate notes, to mature in 1999, 2000 and 2001, with
an outstanding $92.8 million, were discussed.

Its cash reserves are drying up, while about $886 million
in borrowings will be due within a year or in demand.

The Hong Kong Standard reports on the same case saying that
the company confirmed the meeting with floating rates notes
holders last month, following its disclosure of a US$107.3
million net loss for the year ended December 31. The
company expects discussions with noteholders to continue
over the next couple of months.

Affected by the Asian turmoil, the company's final results
have worsened following a US$20.69 million loss provision
for diminution of value in Indonesian associated companies
as well as a US$10.16 million loss on provision for
diminution of value in listed and unlisted investments.


CARON CO-OPERATIVE BUILDING: Members' Voluntary Liquidation
-----------------------------------------------------------
The creditors of Caron Co-operative Building Society
Limited, which is being wound up voluntarily, are required
on or before July 18, 1998 to send in their debts or claims
to Ng Hon Ying, Liquidator of the company.


CHAPEL HILL LTD: Companies Winding-up
-------------------------------------
A petition for the winding-up of Chapel Hill Limited by the
High Court of HKSAR was on 4 Jun, 98, and is directed to be
heard before the Court on 15 July, 98.


CHINA GLORIOUS LIMITED: Winding-up Order
----------------------------------------
Date of Order : 17th June 1998
Date of Presentation of Petition : 14th May 1998
Acting Official Receiver & Provisional Liquidator : J.S.
Bush


CHUN FOO LIMITED: Winding-up Order
----------------------------------
Date of Order : 17th June 1998
Date of Presentation of Petition : 11th May 1998
Acting Official Receiver & Provisional Liquidator : J.S.
Bush


FOOK WING INVESTMENT COMPANY LTD: Companies Winding-up
------------------------------------------------------
A petition for the winding-up of Fook Wing Investment
Company Limited by the High Court of HKSAR was on 15 Jun,
98, and is directed to be heard before the Court on 15
July, 98.


GUI JIANG FOODSTUFFS: Companies Winding-up
------------------------------------------
A petition for the winding-up of Gui Jiang Foodstuffs
Trading Company Ltd by the High Court of HKSAR was on 2
Jun, 98, and is directed to be heard before the Court on 15
July, 98.


HONG KONG GERBERA TRADING LTD: Companies Winding-up
---------------------------------------------------
A petition for the winding-up of Hong Kong Gerbera Trading
Limited by the High Court of HKSAR was on 26 May, 98, and
is directed to be heard before the Court on 8 July, 98.


KNJ ENTERPRISES LTD: Companies Winding-up
-----------------------------------------
A petition for the winding-up of KNJ Enterprises Limited by
the High Court of HKSAR was on 29 May, 98, and is directed
to be heard before the Court on 15 July, 98.


MOTEC (FAR EAST) LTD: Winding-up Petition
-----------------------------------------
A petition for the winding-up of Motec (Far East) Ltd
(previously known as Gold United Ltd) by the High Court of
HKSAR was on 16 Jun, 98, and is directed to be heard before
the Court on 22 July, 98.


NEWBOARD INVESTMENTS: Winding-up Order
--------------------------------------
A notice of winding-up order was issued in the high court
of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 250 of 1998
for Newboard Investments Limited on April 18,1998.
A hearing on the petition is set for July 8, 1998.


OCEAN FORTUNE SHIPPING PTE LTD: Notice to Creditors
---------------------------------------------------
A notice on the Hong Kong Standard of June 27 says that
creditors of Ocean Fortune Shipping Pte Ltd, which is being
wound up voluntarily, are required to send in their claims
on or before July 29.


PAN-WIN REALTY AGENCY LTD: Companies Winding-up
-----------------------------------------------
A petition for the winding-up of Pan-Win Realty Agency
Limited by the High Court of HKSAR was on 9 Apr, 98, and is
directed to be heard before the Court on 8 July, 98.


PROFIT STAR INDUSTRIES LTD: Meeting of Creditors
------------------------------------------------
A meeting of the creditors of Profit Star Industries
Limited will be held on Jul 6, 1998.


RHINE HOLDINGS: Rhine Share Deal Dropped
----------------------------------------
The sale of 48.04 million shares, or 25% of the issued
shares, of Rhine Holdings between the group's executive
director, David Chui Fat-chuen, and chairman Wang Ming-
qiang has been called off.

The firm said the termination of the deal was due to Mr
Wang's non-payment of the balance on the purchase of $11.2
million worth of shares. The deal was set up earlier this
year with Mr Wang and Mr Chui signing a conditional
agreement on 1 February and two supplementary agreements on
15 and 31 March.

According to the SCMP, Sin Hua Bank has commenced two
separate legal proceedings, against Rhine Holdings and its
wholly owned subsidiary, Rhine Jewellery, to claim a total
of about $6.35 million.

On Jun 17, Sin Hua Bank sued the company for $676,015 it
claimed was payable by the company under an undertaking for
repayment of overdraft dated May 31, 96. On the same day,
the bank sued Rhine Jewellery for approximately $5.68
million under an agreement of pledge dated July 19, 1996.
The company is now seeking legal advice.


SALVIC LIMITED: Winding-up Order
--------------------------------
Date of Order : 17th June 1998
Date of Presentation of Petition : 14th May 1998
Acting Official Receiver & Provisional Liquidator : J.S.
Bush


SHAM KINS ENTERPRISES LTD: Companies Winding-up
-----------------------------------------------
A petition for the winding-up of Sham Kins Enterprises
Limited by the High Court of HKSAR was on 11 Jun, 98, and
is directed to be heard before the Court on 15 July, 98.


TECHIFORD: Notice of Members' and Creditors' Meetings
-----------------------------------------------------
Techiford International Limited, in creditors` voluntary
liquidation, posted a notice in the Hong Kong Standard of a
members' and creditors' meeting July 28,1998 at 15th Floor,
Hutchison House, 10 Harcourt Road, Central, Hong Kong.


=========
J A P A N  
=========

ALL NIPPON AIRWAYS: Reports Net Loss
------------------------------------
All Nippon Airways (ANA) reported a consolidated net loss
of $5.4 billion yen ($38 million) in the latest fiscal
year, as opposed to the net profit of 4.3 billion yen in
the year-earlier. ANA has faced a fierce competition in
domestic operations because of deregulation. They also have
seen a slower pace of growth in the number of international
flight passengers.  

ANA`s group revenue gained 5.8% to $1.081 trillion yen but
the inclusion of 20 consolidated subsidiaries into its
group earnings report hurt its earnings.


DAIMARU: Says Staff Will Be Compensated
---------------------------------------
An article in the Hong Kong Standard says that Daimaru gift
coupons worth $1 million have yet to be redeemed by
customers and there are no plans to exchange coupons for
cash.

No new stock will be ordered for the store other than food
and everyday items. Clearance sales will begin in the near
future and will be carried out on a gradual basis. Company
bosses hinted there would be no dramatic price cutting and
advised customers not to hang on until the very end in the
hope of a bargain.

Company bosses said the group was still strong in Japan and
would turn its attention to its roots here.

Moody`s Investors Service Inc. said it placed Daimaru
Inc.'s senior unsecured debt rating and its Japanese shelf-
registration rating under review for possible downgrade.

Moody`s said the rating review responds to Daimaru's
announcement that it expects to post an extraordinary loss
of about 14 billion yen at the parent level as a result of
the liquidation of its subsidiaries in Hong Kong and France
and its withdrawal from business in Thailand. Moody`s is
also concerned about Daimaru`s weak profitability, which
stayed below that of the other Japanese department stores.


JAPAN AIRLINES: Reports Wider Losses
------------------------------------
Japan Airlines Co. net loss deepened to $442.9 million for
the year ended March 31, compared with its year-earlier
loss of $101.9 million. The leading Japanese airline blamed
its disappointing earnings on a special loss related to a
restructuring of its non-airline operations. Last spring,
Japan Airlines, also known as JAL, said it plans to sell
several of its hotels in the United States and other
overseas resorts to focus on its airline operations.

On a  group basis, the company reported special losses of  
$569.5 million. The losses are related to its investments
in hotels in New York, Hawaii as well as other overseas
operations.

JAL also said demand for international flights was  
affected by the sluggishness in Japan's economy and the
turmoil in Southeast Asian economies.


LONG TERM CREDIT: Officials Discuss LTCB-Sumitomo Merger
--------------------------------------------------------
According to the SCMP of June 27, the Sumitomo Trust and
Banking Corp will use government funds to merge with and
rescue the foundering LTCB in the biggest move so far
towards saving the country's debt-laden banking sector.

The proposed merger, which was confirmed by the two parties
last night, will create the country's second largest bank
with assets of more than 40 trillion yen.

The merger would be the first between a long-term credit
bank and a trust bank licensed to issue debentures to raise
funds and the Japanese government is likely to use this
rescue as an example of the orderly structuring it has
promised for the nation's troubled financial system.

Measures considered by the two banks include proposals to
sell LTCB's bad loans to the government-run Resolution and
Collection Bank, while placing its questionable loans in
the custody of a proposed state-run bank.

Many other banks rejected LTCB's approaches as it is
suffocating under 1.4 trillion yen in bad debt. Yet
Sumitomo Trust itself wrote off 334 billion yen of its 1.13
trillion yen in bad loans in March.

Sumitomo Trust ranks second among Japan's seven trust banks
in terms of funds available. Its assets reach 15.6 trillion
yen compared with LTCB's 26.10 trillion yen as of March 31.

A member of the Osaka-based Sumitomo business group,
Sumitomo Trust posted a parent loss of 93.47 billion yen
for the year to March 31. In the year to March 31, its
operating revenue and net business profit from core banking
operations were 992.4 billion yen and 131.4 billion yen
respectively. Mitsubishi Trust and Banking Co was the top
trust bank.

LTCB has been seeking to rehabilitate its operations by
enhancing tie-up arrangements with Swiss Bank Corp (SBC),
while rumors of its bad-loan problems have scared investors
from purchasing its debentures, its core fund-raising
instrument. LTCB and SBC had earlier set up a joint venture
to engage in businesses such as asset management and
securities.

Following Friday's announcement of merger talks between the
Long Term Credit Bank of Japan Ltd. (LTCB) and the Sumitomo
Trust and Banking Company Ltd., Standard and Poor's Rating
Group said both banks remain on CreditWatch.

However, the Long Term Credit Bank of Japan Ltd.
implication was changed from negative to "developing".
Developing implies that the ratings may be raised, lowered,
or affirmed. Sumitomo Trust and Banking Company Ltd.
remains on CreditWatch with negative implications.

The Nihon Keizai reports the Financial Supervisory Agency
(FSA) plans to begin its inspection of Long Term Credit
Bank of Japan (LTCB) immediately. Officials hope to pave
the way for a smooth merger between LTCB and Sumitomo Trust
& Banking Co. (8403) by accurately assessing the value of
LTCB's loans.


YAMAICHI SECURITIES: Yamaichi Investors Get Formal Apology
----------------------------------------------------------
According to an Agence France-Presse in the Hong Kong
Standard of June 27, Japan's fallen brokerage Yamaichi
Securities held its final shareholders' meeting yesterday,
spending nearly 5 hours apologising to distraught
investors.

Yamaichi's president Shohei Nozawa said Yamaichi took a net
loss of 460.3 billion yen in the past year to March and its
liabilities exceeded its net worth by 22.5 billion yen.

He admitted they he had heard a rumor of off-the-book
losses once in August last year, when he was the head of
the Osaka branch.

Yamaichi ended the meeting approving the earnings report
for the past year and the appointment of three new
auditors. The management failed to discuss a resolution on
liquidating the firm, because there were not enough
shareholders present.

The Financial Times reports many shareholders decided not
to turn up so the resolution could not pass. Yamaichi now
plans to file for a court order for liquidation.


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

CHUNGCHONG BANK: To Be Taken Over by the Hana Bank
--------------------------------------------------
According to a Korea Times article, the Financial
Supervisory Commission (FSC) has decided to virtually
liquidate five banks which have been under its review. The
weaker banks will be disposed of under a "Purchase and
Acquisition (P&A) formula" whereby stronger banks will
absorb the weak banks by taking over their assets and
liabilities.  

Under this P&A system, the Korea Asset Management
Corporation (KAMC) will write off the bad debts of the
nonviable banks using its public funds. Furthermore, the
FSC will allow the healthier banks to sell off acquired bad
debts from the liquidated banks to the KAMC within six
months of the takeovers. The sounder purchasing banks will
also receive equity capital from the government should
their own capital adequacy ratio set by the Bank for
International Settlements (BIS) fall below 8 percent due
to the acquisition of bad bank assets. Additionally, the
strong banks will be allowed to selectively take over fixed
assets of the weak banks. This means that the strong banks
can acquire only the sound assets of the nonviable banks,
and ask the KAMC to purchase poorly valued assets and bad
debts.

The FSC will shut down the five banks for three to five
days. The Chungchong Bank is to be taken over by the Hana
Bank. Chungchong Bank has 230.8 billion won in capital, 112
branches, 1,467 employees and a BIS Ratio of 7.05%.

The FSC, Korea's financial watchdog institution,
established an evaluating committee earlier this month to
diagnose 12 commercial banks which failed to meet the
minimum 8 percent capital adequacy requirements set by the
Bank for International Settlements (BIS).


DAECHANGJIN: Creditor Reconciliation Procedure Started
------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that Daechangjin Company started its creditor
reconciliation procedure. The company's address is 396-7
Hapchung-dong, Mapo-gu, Seoul and the president is Mr. Kim
Sung-taek. The creditors have until July 25, 1998 to file
their claims. Mr. Kim Sung-taek is also the president of
the Shinhwa Textile, JCP, and Icinoo Companies.


DAEDONG BANK: To Be Taken Over by the Kookmin Bank
--------------------------------------------------
According to a Korea Times article, the Financial
Supervisory Commission (FSC) has decided to virtually
liquidate five banks which have been under its review. The
weaker banks will be disposed of under a "Purchase and
Acquisition (P&A) formula" whereby stronger banks will
absorb the weak banks by taking over their assets and
liabilities.  

Under this P&A system, the Korea Asset Management
Corporation (KAMC) will write off the bad debts of the
nonviable banks using its public funds. Furthermore, the
FSC will allow the healthier banks to sell off acquired bad
debts from the liquidated banks to the KAMC within six
months of the takeovers. The sounder purchasing banks will
also receive equity capital from the government should
their own capital adequacy ratio set by the Bank for
International Settlements (BIS) fall below 8 percent due
to the acquisition of bad bank assets. Additionally, the
strong banks will be allowed to selectively take over fixed
assets of the weak banks. This means that the strong banks
can acquire only the sound assets of the nonviable banks,
and ask the KAMC to purchase poorly valued assets and bad
debts.

The FSC will shut down the five banks for three to five
days. The Daedong Bank is to be taken over by the Kookmin
Bank. Daedong Bank has 145.3 billion won in capital, 108
branches, 1,753 employees, and a BIS ratio of 2.9%.

The FSC, Korea's financial watchdog institution,
established an evaluating committee earlier this month to
diagnose 12 commercial banks which failed to meet the
minimum 8 percent capital adequacy requirements set by the
Bank for International Settlements (BIS).


DONGNAM BANK: Taken Over by Housing and Commercial Bank
-------------------------------------------------------
According to a Korea Times article, the Financial
Supervisory Commission (FSC) has decided to virtually
liquidate five banks which have been under its review. The
weaker banks will be disposed of under a "Purchase and
Acquisition (P&A) formula" whereby stronger banks will
absorb the weak banks by taking over their assets and
liabilities.  

Under this P&A system, the Korea Asset Management
Corporation (KAMC) will write off the bad debts of the
nonviable banks using its public funds. Furthermore, the
FSC will allow the healthier banks to sell off acquired bad
debts from the liquidated banks to the KAMC within six
months of the takeovers. The sounder purchasing banks will
also receive equity capital from the government should
their own capital adequacy ratio set by the Bank for
International Settlements (BIS) fall below 8 percent due
to the acquisition of bad bank assets. Additionally, the
strong banks will be allowed to selectively take over fixed
assets of the weak banks. This means that the strong banks
can acquire only the sound assets of the nonviable banks,
and ask the KAMC to purchase poorly valued assets and bad
debts.

The FSC will shut down the five banks for three to five
days. The Dongnam Bank is to be taken over by the Housing
and Commercial Bank. Dongnam Bank has 210.6 billion won in
capital, 119 branches, 1,694 employees, and a BIS ratio of
4.54%.

The FSC, Korea's financial watchdog institution,
established an evaluating committee earlier this month to
diagnose 12 commercial banks which failed to meet the
minimum 8 percent capital adequacy requirements set by the
Bank for International Settlements (BIS).


DONGHWA BANK: To Be Taken Over by the Shinhan Bank
--------------------------------------------------
According to a Korea Times article, the Financial
Supervisory Commission (FSC) has decided to virtually
liquidate five banks which have been under its review. The
weaker banks will be disposed of under a "Purchase and
Acquisition (P&A) formula" whereby stronger banks will
absorb the weak banks by taking over their assets and
liabilities.  

Under this P&A system, the Korea Asset Management
Corporation (KAMC) will write off the bad debts of the
nonviable banks using its public funds. Furthermore, the
FSC will allow the healthier banks to sell off acquired bad
debts from the liquidated banks to the KAMC within six
months of the takeovers. The sounder purchasing banks will
also receive equity capital from the government should
their own capital adequacy ratio set by the Bank for
International Settlements (BIS) fall below 8 percent due
to the acquisition of bad bank assets. Additionally, the
strong banks will be allowed to selectively take over fixed
assets of the weak banks. This means that the strong banks
can acquire only the sound assets of the nonviable banks,
and ask the KAMC to purchase poorly valued assets and bad
debts.

The FSC will shut down the five banks for three to five
days. The Donghwa Bank is to be taken over by the Shinhan
Bank. Donghwa Bank has 364.1 billion won in capital, 137
branches, 1,856 employees, and a BIS ratio of 5.34%.

The FSC, Korea's financial watchdog institution,
established an evaluating committee earlier this month to
diagnose 12 commercial banks which failed to meet the
minimum 8 percent capital adequacy requirements set by the
Bank for International Settlements (BIS).


ICINOO COMPANY: Creditor Reconciliation Procedure Started
---------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that Icinoo Company started its creditor
reconciliation procedure. The company's address is 396-7
Hapchung-dong, Mapo-gu, Seoul and the president is Mr. Kim
Sung-taek. The creditors have until July 25, 1998 to file
their claims.


JCP COMPANY: Creditor Reconciliation Procedure Started
------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that JCP Company started its creditor
reconciliation procedure. The company's address is 396-7
Hapchung-dong, Mapo-gu, Seoul and the president is Mr. Kim
Sung-taek. The creditors have until report July 25, 1998 to
file their claims.


KYUNGKI BANK: To Be Taken Over by the Koram Bank
------------------------------------------------
According to a Korea Times article, the Financial
Supervisory Commission (FSC) has decided to virtually
liquidate five banks which have been under its review. The
weaker banks will be disposed of under a "Purchase and
Acquisition (P&A) formula" whereby stronger banks will
absorb the weak banks by taking over their assets and
liabilities.  

Under this P&A system, the Korea Asset Management
Corporation (KAMC) will write off the bad debts of the
nonviable banks using its public funds. Furthermore, the
FSC will allow the healthier banks to sell off acquired bad
debts from the liquidated banks to the KAMC within six
months of the takeovers. The sounder purchasing banks will
also receive equity capital from the government should
their own capital adequacy ratio set by the Bank for
International Settlements (BIS) fall below 8 percent due
to the acquisition of bad bank assets. Additionally, the
strong banks will be allowed to selectively take over fixed
assets of the weak banks. This means that the strong banks
can acquire only the sound assets of the nonviable banks,
and ask the KAMC to purchase poorly valued assets and bad
debts.

The FSC will shut down the five banks for three to five
days. The Kyungki Bank is to be taken over by the KorAm
Bank. Kyungki Bank has 344.3 billion won in capital, 194
branches, 2,278 employees, and a BIS ratio of 6.69%.

The FSC, Korea's financial watchdog institution,
established an evaluating committee earlier this month to
diagnose 12 commercial banks which failed to meet the
minimum 8 percent capital adequacy requirements set by the
Bank for International Settlements (BIS).


SAEHAN MERCHANT BANKING CORP: Saehan's Suspension Extended
----------------------------------------------------------
The Saehan Merchant Banking Corporation's business
suspension has been extended until July 31 by the Financial
Supervisory Commission. Saehan has liabilities estimated in
excess of 200 billion won ($142.8 million). During this
suspension period, Saehan can seek a capital increase or
pursue a third party take over. According to the Korea
Herald, if Saehan fails to increase its paid in capital or
locate a purchaser, it will close its operations.


SHINHWA TEXTILE: Creditor Reconciliation Procedure Started
----------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that Shinhwa Textile Company started its
creditor reconciliation procedure. The company's address is
210-10, Sungsan-dong, Mapo- gu, Seoul and the president is
Mr. Lee Mun-ho. The creditors have until July 25,
1998 to file their claims. Mr. Kim Sung-taek is also the
president of the Daechangjin, JCP, and Icinoo Companies.


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

ARENSI'S ULTRAMIX CONCRETE: Cement Firms Default on Debts
---------------------------------------------------------
A news summary on the scmp of June 29 reports Cement-
products maker Arensi Holdings said two of its subsidiaries
had defaulted on M$1.2 million in payments to two banks.
Arensi's Ultramix concrete failed to pay $796,650 to
Pacific Bank while Ultramix defaulted on $364,473 in
payments to Bank Bumiputra.


BELTON PROPERTIES SDN BHD: Winding-up Petition
----------------------------------------------
HSH Engineering and Construction Sdn Bhd (petitioner) on
5/6/98 petitioned for the winding-up of Belton Properties
Sdn Bhd (respondent). The petition is directed to be heard
on 25/9/98.


CHONG YAH TRADING SDN BHD: Voluntary Winding-up
-----------------------------------------------
The members of Chong Yah Trading Sdn Bhd resolved on
22/6/98 to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
27/7/98.


CYGAL BHD: Petition Thrown Out
------------------------------
The High Court struck out a winding-up petition filed by
Syarikat Lian Ping Enterprise against Cygal Bhd (listed in
the KLSE). It was held that the dispute should be
arbitrated as per the subcontract.


EVER MODERN SDN BHD: Voluntary Winding-up
-----------------------------------------
The members of Ever Modern Sdn Bhd on 23/6/98 resolved to
wind-up the company voluntarily. Creditors of the company
are requested to submit their claims before 27/7/98.


GEMTEX ABRASIVES (M) SDN BHD: Winding-up Petition
-------------------------------------------------
Securiforce Sdn Bhd (Petitioner) on 25/5/98 petitioned for
the winding-up of Gemtex Abrasives (M) Sdn Bhd
(respondent). The petition is directed to be heard on
25/9/98.


GOLDEN PHAROS BHD: Share Trading Suspension
-------------------------------------------
Golden Pharos Bhd, listed in the KLSE, requested and
granted a voluntary suspension of trading on its shares,
following a petition to wind-up the company. No
announcement been made yet. The shares of the company were
last traded on Friday at RM0.515.


HASMAN EDAR SDN BHD: Voluntary Winding-up
-----------------------------------------
The members of Hasman Edar Sdn Bhd had resolved to wind-up
the company and requested its creditors to submit their
claims before 25/7/98.


HUSIN RASHID CONSTRUCTION SDN BHD: Winding-up Petition
------------------------------------------------------
Perwira Affin Bank Bhd (petitioner) on 18/5/98 petitioned
for the winding-up of Husin Rashid Contruction Sdn Bhd
(respondent). The petition is directed to be heard on
16/9/98.


KAGUM PERTAMA SDN BHD: Voluntary Winding-up
-------------------------------------------
The members of Kagum Pertama Sdn Bhd on 29/6/98 resolved to
wind-up the company voluntarily. Creditors of the company
are required to submit their claims before 28/7/98.


KARTIKA KENCANA SDN BHD: Winding-up Petition
--------------------------------------------
APG Geo-Systems Sdn Bhd (petitioner) on 2/6/98 petitioned
for the winding-up of Kartika Kencana Sdn Bhd (respondent).
The petition is directed to be heard on 28/8/98.


KUMPULAN FIMA BHD: Malaysian Firm Hit by Stock Losses
-----------------------------------------------------
According to a Bloomberg article in the Hong Kong Standard
of June 29, Kumpulan Fima Bhd, a Malaysian brokerage and
property company, said it lost money for fiscal 1998 due to
stock brokerage operations.

Losses were 429.9 million ringgit, or 1.63 ringgit a share,
for the year to March, compared to a profit of 35.5 million
ringgit, or 0.14 ringgit a share, from a year ago.

The company said it had set aside 414.1 million ringgit for
doubtful debts and a good-will write-off of its brokerage
unit --- CapitalCorp Securities.

It was one of 12 brokerages in Malaysia that the Kuala
Lumpur Stock Exchange said in May could not meet capital
requirements.


PINANG U-LI ENGINEERING SDN BHD: Winding-up Petition
----------------------------------------------------
Hicom United Leasing Sdn Bhd (Petitioner) on 2/6/98
petitioned for the winding-up of Pinang U-Li Engineering
Sdn Bhd (respondent).


TRYOPRECISION (M) SDN BHD: Winding-up Petition
----------------------------------------------
Bank Bumiputra Malaysia Bhd (petitioner) on 10/6/98
petitioned for the winding-up of Tryoprecision (M) Sdn Bhd
(respondent). The petition is directed to be heard on
15/7/98.


UNIPHOENIX CORP BHD (UCB): Civil Action Restrained
--------------------------------------------------
The High Court ordered all civil actions against UCB
(listed in the KLSE) be restrained and stayed for 3 months.

The judge's decision was made after allowing an ex-parte
application by UCB's minor shareholder, investment holding
company Profile Corp Sdn Bhd (PCSB).

The company appointed Arab-Malaysian Merchant Bank Bhd to
advise on a proposed restructuring scheme.

Subject to a due diligence, PCSB envisages a full cash
repayment of all unsecured creditors over 8 years.


WIL-SUPPLIES SDN BHD: Winding-up Petition
-----------------------------------------
Metroll (Malaysia) Sdn Bhd (petitioner) on 20/4/98
petitioned for the winding-up of Wil-Supplies Sdn Bhd
(respondent). The petition is directed to be heard on
17/7/98.


Y.M. LEONG SDN BHD: Voluntary Winding-up
----------------------------------------
The members of Y.M. Leong Sdn Bhd on 25/6/98 resolved to
wind-up the company voluntarily. Creditors of the company
are required to submit their claims before 29/7/98.


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

PHILIPPINE AIRLINES: Dismissed PAL Pilots End Strike
----------------------------------------------------
According to an Agence France-Presse article in the SCMP of
June 27, Philippines Airlines pilots yesterday ended a
three-week strike, saying they will comply with a
government directive to return to work.

PAL, however, said the pilots had already been fired after
failing to heed the order by the Department of Labour on
June 9, and the airline would accept the pilots only as
applicants for jobs.

Directive from the Labour Department, which was issued on
June, said the pilot should return to work within 24 hours
and PAL should accept them under the same terms as before
the strike, which began on June 5.

However, efforts to serve it to union officials and their
legal counsel failed and pilots said in a letter to their
president that the letter was only served to them on
Thursday.

According to the Hong Kong Standard, 500 strikers were made
to fill out application forms for 100 vacant slots for
pilots.

The union's lawyer Joji Antonio said they would be forced
to file a case of illegal lock-out against PAL if it
refused to take back the pilots, adding that PAL still had
the option to keep its planes and return to normal
operations amid its fiscal difficulties.


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

AYUDHYA DEVELOPMENT LEASING: Lifts Paid-up Capital to B400m
-----------------------------------------------------------
Ayudhya Development Leasing Corp (ADLC) said yesterday that
it had increased its paid-up capital to 400 million baht
from 250 million.

The International Finance Corporation, the investment arm
of the World Bank, increased its stake from 15% to 19%,
becoming the largest foreign shareholder in ADLC.

Bank of Ayudhya raised its stake from 11% to 29%, becoming
the largest local shareholder.

Raising capital was a precondition for ADLC to obtain
access to a $10-million loan from the International Finance
Corporation. The seven-year loan carries a two-year grace
period and an annual interest rate of Libor (London
Interbank Offered Rate) plus 250 basis points.

Yun Soo Kim, executive vice-president of ADLC, said the
loan would be used to refinance the company's short-term
debts and to fund additional lending and investments.

The increase in the company's capital base should allow
ADLC to increase assets from 3.4 billion baht at the end of
1997 to around four billion by the end of this year.


BANGKOK RUBBER: To Cut Stake in Subsidiaries
--------------------------------------------
The Nation reports Bangkok Rubber Plc (BRC) has decided to
dilute ownership in ten of its subsidiaries, reasoning that
the dilution would help it restructure.


NIKKO MAHANAKORN: Creditors of Hotel Turn to Court
--------------------------------------------------
Three financial institutions on Friday filed an application
with the court to restructure the insolvent Nikko
Mahanakorn Hotel on Ratchadapisek Road involving a debt of
more than Bt3.4 billion -- the second major case of debt
restructuring up for the court to consider.


PHATRA SECURITIES: Phatra May Have Violated Regulations
-------------------------------------------------------
The Bangkok Post reports the Stock Exchange of Thailand
will investigate whether Phatra Thanakit violated
disclosure regulations in announcing its deal with Thai
Farmers Bank last Monday.

SET president Singh Tangtatswas said market officials had
contacted Phatra Thanakit on Monday morning after press
reports surfaced that Thai Farmers Bank was preparing to
launch a tender offer for shares of the finance company.
Mr Singh said a senior Phatra executive had denied the
reports. The SET, as a result, did not suspend trading or
ask for an official clarification.

But later in the afternoon, Phatra and Thai Farmers Bank
executives announced a tender offer for outstanding shares
by the bank at 4.50 baht per share. Shares in Phatra
Securities and Thai Farmers Asset Management held by Phatra
Securities would also be sold to Thai Farmers Bank.

After the transactions, Phatra Thanakit would transfer
performing assets to a new company which would later apply
for a "super-finance" licence. Ailing assets would be
transferred to another company for rehabiliation, sale or
legal action.
  

TOTAL ACCESS: Close to Agreeing Terms with Creditors
----------------------------------------------------
Total Access Communication Plc (TAC), the country's second-
largest cellular operator, is likely to announce a debt
restructuring deal next week as its negotiations with
creditors are close to being finalised, a company source
said.


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
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