/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/980707.MBXT 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, July 7, 1998, Vol. 1, No. 95 Headlines C H I N A & H O N G K O N G AWT HOLDINGS: Three Subsidiaries in Default AUTORICH INVESTMENT LIMITED: Notice to Creditors CHIEF HERALD LIMITED: Winding-up Petition GILBERT HOLDINGS: Gilbert in Talks With Bankers on Debt GLOBAL INFO CENTRE HONG KONG LIMITED: Notice to Creditors HWA KAY THAI: Ends Agreement With Hung Cheong Machinery MAXTONE ELECTRONICS LIMITED: Winding-up Petition READEN COMPANY LIMITED: Winding-up Petition SHINE POINT DEVELOPMENT LIMITED: Winding-up Petition SIU FUNG CERAMICS: Kumagai Leads Rescue for Siu-Fung QINCHI: Rice Liquor Maker Sinks Deep Into Red I N D O N E S I A PT MEDCO ENERGI: Results Announcement J A P A N DAITO KOGYO: Commission to File Complaint Against Exec HITACHI LTD: Credit Rating Downgraded by S&P LONG TERM CREDIT: LTCB Ineligible for Bridge-Bank System TOYOTA MOTOR: Moody's Puts Toyota on Review for Downgrade K O R E A CHO HUNG BANK: US Bank May Cease Business with Cho Hung DAE CHANG ENTERPRISE: Subject to Immediate Liquidation DAEHAN TEXTILE CO: Subject to Immediate Liquidation DAEWOO GROUP: FSC Starts Review of Top Five Chaebols DONGBANG PEREGRINE: Liquidators Negotiate Sale of JV Stake DONG-AH TELEVISION: Files for Bankruptcy HANIL SYNTHETIC FIBER: Subject to Immediate Liquidation HANSHIN PUBLIC MANAGEMENT: Creditor Reconciliation Allowed HYUNDAI GROUP: FSC Starts Review of Top Five Chaebols IL HWA CO: Subject to Immediate Liquidation INTERNATIONAL COMPREHENSIVE: Files for Liquidation KLB SECURITIES: KLB Securities' Operation Suspended KAWON COMPANY: Files for Bankruptcy KIA MOTORS: Announces Public Tender for July 15 KUNYANG CONCRETE: Starts Creditor Reconciliation KUNYOUNG DISTRIBUTION: Starts Creditor Reconciliation LG GROUP: FSC Starts Review of Top Five Chaebols NAMSUNG CONCRETE: Creditors' Meeting on Reconciliation Plan SK GROUP: FSC Starts Review of Top Five Chaebols SAMSUNG GROUP: FSC Starts Review of Top Five Chaebols SHINHO CORP: Subject to Immediate Liquidation SHINHO ELECTRONICS: Subject to Immediate Liquidation SHINNAM DEVELOPMENT: Subject to Immediate Liquidation YONHAP TELEVISION NEWS: Yonhap TV Behind On Payroll M A L A Y S I A AIMAN CONSTRUCTION MARINE SDN BHD: Winding-up Petition ANIKA CARTEL SDN BHD: Voluntary Winding-up BINTANG TERANG REALTY SDN BHD: Winding-up Petition GOLDEN BEES INDUSTRIES SDN BHD: Winding-up Petition HEADWIND INDUSTRIAL: Voluntary Winding-up INTRA VISION SDN BHD: Winding-up Petition KAMUNTING CORPORATION BHD: Results Announcement MBf NORTHERN SECURITIES SDN BHD: Results Announcement MALAYSIAN PLANTATION BHD: Results Announcement MYCOM: Defaults Rock Real Estate Company PLUS ZONE SDN BHD: Winding-up Petition RENONG BHD: Credit Suisse First Boston to Aid in Plan SILVER JOY INDUSTRIES SDN BHD: Winding-up Petition P H I L I P P I N E S PHILIPPINE AIRLINES: PAL Gets Creditor Restraining Order ================================= C H I N A & H O N G K O N G ================================= AWT HOLDINGS: Three Subsidiaries in Default ------------------------------------------- AWT Holdings Limited, a Hong Kong listed company, said three members of the group had a default judgment rendered against them and various members of the group have also received summonses against them. Since the group announced that its realty agency business was suffering a cash flow problem in June, various members of the group have received summonses relating to claims totaling about HK$19 million. AWT said there also appears to have been a mistake over the amount of the judgment awarded to Great Mark Investment. Great Mark obtained a $21 million judgment against the company's realty subsidiaries. The amount was bigger than the $10.57 million claim stated in AWT's June announcement. AUTORICH INVESTMENT LIMITED: Notice to Creditors ------------------------------------------------ A notice in the Hong Kong Standard of July 3 says that creditors of Autorich Investment Limited, in creditors' voluntary liquidation, are requested to send in their claims on or before August 4. CHIEF HERALD LIMITED: Winding-up Petition ----------------------------------------- A notice in the Hong Kong Standard of July 6 says that a petition for the winding up of Chief Herald Limited was presented to the High Court on June 11 by Kwok Miu Yee. The petition was directed to be heard before the court at 11:00 am on July 15. GILBERT HOLDINGS: Gilbert in Talks With Bankers on Debt ------------------------------------------------------- A news summary in the Hong Kong Standard says that Gilbert Holdings is holding talks with its bankers about its financial position. Chairman Clarence Wong Wing-wah said the status of the discussions would be announced when appropriate. He warned shareholders and investors to exercise caution when dealing in the shares of the company. GLOBAL INFO CENTRE HONG KONG LIMITED: Notice to Creditors --------------------------------------------------------- A notice in the Hong Kong Standard of July 3 says that creditors of Global Info Centre Hong Kong Limited, which is being voluntarily wound up, are required to send in their claims on or before 5 pm, August 7. HWA KAY THAI: Ends Agreement With Hung Cheong Machinery ------------------------------------------------------- Hwa Kay Thai Holdings Limited (HKT), a Hong Kong listed company has recently announced the termination of its agreement with Hung Cheong Machinery Company Limited following Puma`s decision to cancel all licence agreements between Puma and HKT and its subsidiaries. The agreements were signed between HKT and Hung Cheong regarding a proposed financial restructuring of Hwa Kay Thai and its subsidiaries. HKT is in the process of finding another potential investor for restructuring its business and finance. The directors of HKT have warned that if no investors are found, HKT may go into liquidation. HKT has been served with a total of eight writs, which amounted to approximately HK$95 million. The group currently owes HK$152 million to its bankers. In January 1998 the group suspended all payments of principal and interest to its bankers, except for Malaysian and Taiwanese bankers who continue to provide financing to the Group. MAXTONE ELECTRONICS LIMITED: Winding-up Petition ------------------------------------------------ A notice in the Hong Kong Standard of July 3 says that a petition for the winding up of Maxtone Electronics Limited was presented to the High Court on June 2 by The Kwangtung Provincial Bank Building Shenzhen Branch, whose registered place of business is in Shenzhen, PRC. The petition is directed to be heard before the court at 9:30 am on July 15. READEN COMPANY LIMITED: Winding-up Petition ------------------------------------------- The Hong Kong Standard of July 3 shows a notice about the appointment of provisional liquidators for Readen Company Limited. SHINE POINT DEVELOPMENT LIMITED: Winding-up Petition ---------------------------------------------------- A notice in the Hong Kong Standard of July 3 says that a petition for the winding up of Shine Point Development Limited was presented to the High Court on June 1 by Kwong Chan Tong. The petition was directed to be heard before the court at 9:30 am on July 15. SIU FUNG CERAMICS: Kumagai Leads Rescue for Siu-Fung ---------------------------------------------------- According to the SCMP of July 6, Kumagai Gumi (Hong Kong) has emerged as the latest white knight for debt-laden Siu- Fung Ceramics Holdings, replacing China Everbright Holdings (CEH) in leading a consortium making a rescue bid for the company. Kumagai is 35 per cent held by China Everbright International, CEH's locally listed arm. Kumagai and its subsidiaries are principally engaged in construction, property development and investment. In April, CEH and China State Bureau of Light Industry made a non-legally binding agreement to take a joint 51 per cent stake in Siu-Fung at 32 cents a share. Yesterday Kumagai Gumi said it would team up with China State Bureau of Light Industry and Beijing First Light Industry Group to take a 56.26 per cent stake in the company for a combined $800 million, or 20 cents a share. Beijing First Light Industry is a new partner in the deal. Under the conditional agreement, Kumagai will subscribe for 2.35 billion new shares in Siu-Fung at $470.6 million, or 33.09 per cent of the company. The light industry bureau will subscribe for 865 million new shares at $173 million, representing 12.16 per cent of Siu-Fung, while Beijing First Light Industry will pay $156.4 million for 782 million new shares, or 11 per cent of the company. The acquisition is conditional upon Siu-Fung's independent shareholders' approval of a waiver to the three parties from making a mandatory general offer. Another condition is the execution of a debt restructuring agreement, which Siu- Fung is negotiating with its bank creditors and equity investors. It owes $3.3 billion in debts. Siu-Fung would become a debt-free company with an improved balance sheet. The Hong Kong Standard reports Kumagai said subject to the above mentioned subscriptions and capital reconstruction, it would, in any case, hold not less than 30 per cent, and Shui Hua and Jingqing together not less than 21 per cent of the expanded issued capital of Siu Fung. The SCMP reports Siu-Fung lost $1.44 billion in the two years to December last year, blaming the disappointing result on the huge costs involved in restructuring its German subsidiaries. QINCHI: Rice Liquor Maker Sinks Deep Into Red --------------------------------------------- According to the SCMP of July 6, a small liquor factory in Shandong that became a household name after paying a king's ransom to become the most advertised brand on television for two years is deep in debt and running at only 20 per cent of capacity. Qinchi was a small manufacturer of rice liquor in Linqu county, a poor area in the hills of central Shandong. It had an annual output of 10,000 tonnes until 1995, when it posted taxes and profits of 35.88 million yuan. Management then decided to invest heavily in advertising as the only way to distinguish their product from that of thousands of other liquor manufacturers in a crowded and competitive market. However, sales started to fall from the start of last year. Now only four of its 20 production lines are operating and more than 100 containers of unsold products are in its warehouse according to the China Business Times. The firm did not diversify and did not upgrade its equipment or improve distribution. The government limits production of rice liquor and encourages a switch to wine, which consumes less grain. Weighed down by bank interest payments and low production, the firm has fallen into the red. ================= I N D O N E S I A ================= PT MEDCO ENERGI: Results Announcement ------------------------------------- PT Medco Energi Corp., an Indonesian oil and gas company, recorded a net loss of 31.6 million rupiah (US$.2 million) for the first quarter, compared with a net profit of 12.6 billion rupiah the year before. Foreign-exchange losses reached 173.4 billion rupiah for the first quarter and interest loss came to 34.2 billion rupiah, making the company's miscellaneous losses 201.6 billion rupiah. ========= J A P A N ========= DAITO KOGYO: Commission to File Complaint Against Exec ------------------------------------------------------ According to Kyodo News, the Securities and Exchange Surveillance Commission plans to file a criminal complaint with public prosecutors as early as Monday against a former executive of a subsidiary of bankrupt Daito Kogyo Co. on suspicion of insider trading, commission sources said Sunday. The former executive is suspected of violating the Securities and Exchange Law by allegedly making profits of some 10 million yen by short-selling about 100,000 Daito Kogyo shares just before the Tokyo-based construction contractor applied at the Tokyo District Court for corporate rehabilitation proceedings on August 19 of last year, the sources said. The Securities and Exchange Surveillance Commission filed the accusations with prosecutors against Osamu Okochi, 57, a former vice president of a Daito Kogyo subsidiary, Katsuragaoka Kaihatsu, which ran a golf course in Ibaraki Prefecture, northeast of Tokyo. HITACHI LTD: Credit Rating Downgraded by S&P -------------------------------------------- The Asian Wall Street Journal reports that Standard and Poor's has lowered the long-term rating of Hitachi from AAA to AA. The outlook on the long-term rating is negative. S&P also placed Hitachi Credit Corporation's long-term AA and short-term A-1 ratings on CreditWatch with negative implications. Hitachi Credit Corp. is 52.4 percent owned by Hitachi Ltd. The Asian Wall Street Journal reports that S&P said that Hitachi's downgrade reflects the diminishing earnings stability of the company's core information systems and electronic segment, power and industrial systems segment, and Japan's economic downturn. The ratings could be lowered if restructuring efforts are unsuccessful and if the company experiences a further deterioration in its financial profile, Standard & Poor's said. LONG TERM CREDIT: LTCB Ineligible for Bridge-Bank System -------------------------------------------------------- The Nihon Keizai reports Japan's proposed bridge-bank system for dealing with failed financial institutions will not apply to Long-Term Credit Bank of Japan because a merger has already been worked out with Sumitomo Trust & Banking Co., government sources said Thursday. The decision means that if LTCB is unable to liquidate all its bad loans, including those in category 2, ahead of the merger, Sumitomo Trust will have to take over the entire portfolio once the deal goes through. Loans in category 2 are those still being serviced by the borrower but considered in need of strict monitoring. TOYOTA MOTOR: Moody's Puts Toyota on Review for Downgrade --------------------------------------------------------- The Asian Wall Street Journal reports that Moody's Investor Services has placed the long-term debt rating of Toyota Motor Corporation on review for a possible downgrade. Moody's said its action was based on increased competition and on the weakening demand in Japan and Southeast Asia. ========= K O R E A ========= CHO HUNG BANK: US Bank May Cease Business with Cho Hung ------------------------------------------------------- An article in the Korea Herald reports officials at Cho Hung Bank have said that Citibank of the United States recently notified them that it is reconsidering its earlier decision to roll over $15 million in loans. These loans come due on July 20. Cho Hung, one of the largest banks in Korea, had information made public recently on its capital- to-asset ratio, as well as its bad loans by the Financial Supervisor Commission (FSC). The FSC also included Cho Hung on a list of banks that can remain open under the condition that that their management improvement plans be submitted and approved by the end of July 1998. Furthermore, they must increase their capital adequacy ratio calculated using the standards set by the Bank for International Settlements (BIS) to over 8 percent within the next two years. DAE CHANG ENTERPRISE: Subject to Immediate Liquidation ------------------------------------------------------ The Korean language Maeil Kyungje reports Korea's Financial Supervisory Commission, the newly created financial watchdog agency, announced that Dae Chang Enterprise Company is subject to immediate liquidation, and creditor banks are to stop providing the company with new loans. On June 18 the FSC issued a list of 55 nonviable firms subject to immediate liquidation. The "hit list" was generated at the request of the FSC by the nation's 26 commercial banks, which classified their business loan- clients into three groups - normal, viable, and nonviable. DAEHAN TEXTILE CO: Subject to Immediate Liquidation --------------------------------------------------- The Korean language Maeil Kyungje reports Korea's Financial Supervisory Commission, the newly created financial watchdog agency, announced that Daehan Textile Company is subject to immediate liquidation, and creditor banks are to stop providing the company with new loans. On June 18 the FSC issued a list of 55 nonviable firms subject to immediate liquidation. The "hit list" was generated at the request of the FSC by the nation's 26 commercial banks, which classified their business loan- clients into three groups - normal, viable, and nonviable. DAEWOO GROUP: FSC Starts Review of Top Five Chaebols ---------------------------------------------------- The Financial Supervisory Commission (FSC), the Korean government's newly formed financial watchdog agency, has started a screening process of the subsidiaries of the country's largest family owned conglomerates (chaebols). Among these is Daewoo Group. Four banks leading on-going industrial restructuring efforts have recently formed a task force that is solely in charge of the reform of the five major business groups. The team will also conduct a review of possible cross-payment guarantees between subsidiaries of each chaebol. An FSC official is cited in the Korea Times as saying that if some chaebol subsidiaries are found to be unprofitable and lack the ability to survive, the task force (in consultation with the creditor banks) will present a final decision regarding liquidation next month. DONGBANG PEREGRINE: Liquidators Negotiate Sale of JV Stake ---------------------------------------------------------- According to the SCMP of July 3, Dongbang Peregrine Securities, the failed Peregrine Group's joint venture brokerage in South Korea, yesterday said Shing Dong Bang Group was buying back 32 per cent of its shares from Daehan Investment Banking Corp for 56.2 billion won. A spokesman for the brokerage said Peregrine's liquidators were negotiating with Korean companies to sell its 44 per cent stake, adding both Shing Dong Bang and Daehan Investment Banking were among them. Shing Dong Bang, an edible oil maker, will again become Korea's largest shareholder of the firm and Daehan Investment will become the second largest shareholder with a 20 per cent stake. Shing Dong Bang, which established Korea's first joint venture brokerage in 1992 with Peregrine, sold its 39.5 per cent stake to Daehan Investment for 52.2 billion won last September, but the Hong Kong company has refused to recognise the agreement, saying it had not been notified of the deal beforehand. A Seoul court recognised the proprietary rights of Daehan Investment, but not its voting rights, after Peregrine filed a suit for the nullification of the deal. The spokesman said Daehan sold the shares back to Shing Dong Bang because of that. Before its Hong Kong partner went bankrupt last year, Dongbang Peregrine was one of the most profitable brokers in Korea. After five years of profits, it posted a net loss of 40 billion won for the year to March. DONG-AH TELEVISION: Files for Bankruptcy ---------------------------------------- According to the Korean language Maeil Kyungje's Business Brief, Dong-Ah Television Company, an affiliate of Taehan Transport Company, has filed for bankruptcy. HANIL SYNTHETIC FIBER: Subject to Immediate Liquidation ------------------------------------------------------- The Korean language Maeil Kyungje reports Korea's Financial Supervisory Commission, the newly created financial watchdog agency, announced that Hanil Synthetic Fiber Company is subject to immediate liquidation, and creditor banks are to stop providing the company with new loans. On June 18 the FSC issued a list of 55 nonviable firms subject to immediate liquidation. The "hit list" was generated at the request of the FSC by the nation's 26 commercial banks, which classified their business loan- clients into three groups - normal, viable, and nonviable. HANSHIN PUBLIC MANAGEMENT: Creditor Reconciliation Allowed ---------------------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief, the Seoul District Court has allowed Hanshin Public Management company's creditor reconciliation procedure. HYUNDAI GROUP: FSC Starts Review of Top Five Chaebols ----------------------------------------------------- The Financial Supervisory Commission (FSC), the Korean government's newly formed financial watchdog agency, has started a screening process of the subsidiaries of the country's largest family owned conglomerates (chaebols). Among these is Hyundai Group. Four banks leading on-going industrial restructuring efforts have recently formed a task force that is solely in charge of the reform of the five major business groups. The team will also conduct a review of possible cross-payment guarantees between subsidiaries of each chaebol. An FSC official is cited in the Korea Times as saying that if some chaebol subsidiaries are found to be unprofitable and lack the ability to survive, the task force (in consultation with the creditor banks) will present a final decision regarding liquidation next month. IL HWA CO: Subject to Immediate Liquidation ------------------------------------------- The Korean language Maeil Kyungje reports Korea's Financial Supervisory Commission, the newly created financial watchdog agency, announced that Il Hwa Company is subject to immediate liquidation, and creditor banks are to stop providing the company with new loans. On June 18 the FSC issued a list of 55 nonviable firms subject to immediate liquidation. The "hit list" was generated at the request of the FSC by the nation's 26 commercial banks, which classified their business loan- clients into three groups - normal, viable, and nonviable. INTERNATIONAL COMPREHENSIVE: Files for Liquidation -------------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief, International Comprehensive Construction Company, an affiliate of Keukdong Construction Company, withdrew its creditor reconciliation procedure that it had submitted to the Pusan District Court. Instead the company has filed for a liquidation procedure. KLB SECURITIES: KLB Securities' Operation Suspended --------------------------------------------------- KLB Securities Company, the brokerage arm of the Korea Long-Term Credit Bank, received a one-month suspension order from the Financial Supervisory Commission (FSC), Korea's newly formed financial watchdog agency. This move, according to a report in the Korea Herald, is seen as a step toward its eventual shutdown. The securities company's low ratio of operating funds (or net operational capital ratio), which is the solvency standard for Korean brokerage firms, was reported to be 16.9 percent by the Korea Times. The FSC is authorized to close securities companies with net operational ratios that are less than 100 percent. As of May 31, KLB Securities Co. was able to report a net operational capital ratio of 160 percent after issuing subordinated bonds worth 90 billion won. However, it was later learned that the firm had employed irregular methods to issue about 50 billion won worth of these bonds, using client deposits as collateral. Afterward, the net operational capital ratio shrank by 90 percent. Furthermore, the FSC has put a travel ban on the firm's CEO, Mr. Lee Dae-rim, to prevent him from leaving the country. Mr. Lee is reported to have arbitrarily paid 20.7 billion won to employees as severance pay before the FSC could scrutinize the firm's management. This may constitute breach of trust. The shut down was urged at the request of the firm's major shareholder, the Korea Long-Term Credit Bank (which controls a 35.41 stake). This is a move that has been interpreted as an effort to prevent the ailing subsidiary from dragging down its parent, one of Korea's soundest banks. KAWON COMPANY: Files for Bankruptcy ----------------------------------- The Korean language Maeil Kyungje's Business Briefs reported that Kawon Company, an affiliate of Kyungnam Energy Company, has filed for bankruptcy. KIA MOTORS: Announces Public Tender for July 15 ----------------------------------------------- According to a report by Agence France-Presse, South Korea's ailing Kia Motors Corp. and its sister firm, Asia Motors Corp., will be put up for public tender on July 15, creditors said Monday. Kia's main creditor, Korea Development Bank (KDB), said successful bidders would be named at the end of August. KDB officials said letters of "offer memorandum" would be sent to South Korean and foreign buyers, including US auto giant Ford Motor Co., which holds a 16.9-percent stake in Kia with Japanese affiliate Mazda Motor Corp. KDB officials said Kia would be sold off through public bids and liquidation procedures simultaneously. KUNYANG CONCRETE: Starts Creditor Reconciliation ------------------------------------------------ The Seoul District Court advertised in the Korean language Maeil Kyungjc that Kunyang Concrete Company has started its creditor reconciliation procedure. The company's address is 246-104 Kueu-dong, Kwangjin-gu, Seoul and the president is Mr. Song Jin-su. Creditors have until August 3, 1998 to file their claims. KUNYOUNG DISTRIBUTION: Starts Creditor Reconciliation ----------------------------------------------------- The Seoul District Court advertised in the Korean language Maeil Kyungje that Kunyoung Distribution/Construction Industry Company has started its creditor reconciliation procedure. Creditors have until August 5, 1998 to file their claims. The company's address is 46-3 Chamwon-dong, Seocho-gu, Seoul and the president is Mr. Shin Ho-chul. LG GROUP: FSC Starts Review of Top Five Chaebols ------------------------------------------------ The Financial Supervisory Commission (FSC), the Korean government's newly formed financial watchdog agency, has started a screening process of the subsidiaries of the country's largest family owned conglomerates (chaebols). Among these is LG Group. Four banks leading on-going industrial restructuring efforts have recently formed a task force that is solely in charge of the reform of the five major business groups. The team will also conduct a review of possible cross-payment guarantees between subsidiaries of each chaebol. An FSC official is cited in the Korea Times as saying that if some chaebol subsidiaries are found to be unprofitable and lack the ability to survive, the task force (in consultation with the creditor banks) will present a final decision regarding liquidation next month. NAMSUNG CONCRETE: Creditors' Meeting on Reconciliation Plan ----------------------------------------------------------- The Taechun District Court advertised in the Korean language Maeil Kyungje that the Namsung Concrete Company plans to have a meeting in order to gather opinions of creditors and other interested parties. The meeting is scheduled on July 14, 1998. The address of the company is 180-1 Munbang-ri, Inju-myun, Asan-si and the manager to contact is Mr. Kwon Jae-ik. SK GROUP: FSC Starts Review of Top Five Chaebols ------------------------------------------------ The Financial Supervisory Commission (FSC), the Korean government's newly formed financial watchdog agency, has started a screening process of the subsidiaries of the country's largest family owned conglomerates (chaebols). Among these is SK Group. Four banks leading on-going industrial restructuring efforts have recently formed a task force that is solely in charge of the reform of the five major business groups. The team will also conduct a review of possible cross-payment guarantees between subsidiaries of each chaebol. An FSC official is cited in the Korea Times as saying that if some chaebol subsidiaries are found to be unprofitable and lack the ability to survive, the task force (in consultation with the creditor banks) will present a final decision regarding liquidation next month. SAMSUNG GROUP: FSC Starts Review of Top Five Chaebols ----------------------------------------------------- The Financial Supervisory Commission (FSC), the Korean government's newly formed financial watchdog agency, has started a screening process of the subsidiaries of the country's largest family owned conglomerates (chaebols). Among these is Samsung Group. Four banks leading on-going industrial restructuring efforts have recently formed a task force that is solely in charge of the reform of the five major business groups. The team will also conduct a review of possible cross-payment guarantees between subsidiaries of each chaebol. An FSC official is cited in the Korea Times as saying that if some chaebol subsidiaries are found to be unprofitable and lack the ability to survive, the task force (in consultation with the creditor banks) will present a final decision regarding liquidation next month. SHINHO CORP: Subject to Immediate Liquidation --------------------------------------------- The Korean language Maeil Kyungje reports Korea's Financial Supervisory Commission, the newly created financial watchdog agency, announced that Shinho Corporation is subject to immediate liquidation, and creditor banks are to stop providing the company with new loans. On June 18 the FSC issued a list of 55 nonviable firms subject to immediate liquidation. The "hit list" was generated at the request of the FSC by the nation's 26 commercial banks, which classified their business loan- clients into three groups - normal, viable, and nonviable. SHINHO ELECTRONICS: Subject to Immediate Liquidation ---------------------------------------------------- The Korean language Maeil Kyungje reports Korea's Financial Supervisory Commission, the newly created financial watchdog agency, announced that Shinho Electronics and Communications Company is subject to immediate liquidation, and creditor banks are to stop providing the company with new loans. On June 18 the FSC issued a list of 55 nonviable firms subject to immediate liquidation. The "hit list" was generated at the request of the FSC by the nation's 26 commercial banks, which classified their business loan- clients into three groups - normal, viable, and nonviable. SHINNAM DEVELOPMENT: Subject to Immediate Liquidation ----------------------------------------------------- The Korean language Maeil Kyungje reports Korea's Financial Supervisory Commission, the newly created financial watchdog agency, announced that Shinnam Development Company is subject to immediate liquidation, and creditor banks are to stop providing the company with new loans. On June 18 the FSC issued a list of 55 nonviable firms subject to immediate liquidation. The "hit list" was generated at the request of the FSC by the nation's 26 commercial banks, which classified their business loan- clients into three groups - normal, viable, and nonviable. YONHAP TELEVISION NEWS: Yonhap TV Behind On Payroll --------------------------------------------------- According to a report in the Asian Wall Street Journal, the Yonhap Television News, a 24-hour nationwide cable news station had not paid its staff of 450 in the last five months. In March of this year, the employees agreed to a 30 percent pay cut, plus one month of leave without pay. However even reduced paychecks have not been issued. The company has been unsuccessfully trying to attract investors since last February, but there have been no buyers. Mr. Yoo Jong-shin, a managing director of the station's planning department was quoted as saying, "we don't have any money." =============== M A L A Y S I A =============== AIMAN CONSTRUCTION MARINE SDN BHD: Winding-up Petition ------------------------------------------------------ Copper Slag (Malaysia) Sdn Bhd (petitioner) on 13/4/98 petitioned for the winding-up of Aiman Construction Marine Sdn Bhd (respondent). The petition is directed to be heard on 27/11/98. ANIKA CARTEL SDN BHD: Voluntary Winding-up ------------------------------------------ The members of Anika Cartel Sdn Bhd on 2/7/98 resolved to wind-up Anika Cartel Sdn Bhd voluntarily. Creditors of the company are required to submit their claims before 4/8/98. BINTANG TERANG REALTY SDN BHD: Winding-up Petition -------------------------------------------------- Sime Bank Bhd on 1/4/98 petitioned for the winding-up of Bintang Terang Realty Sdn Bhd. The petition is directed to be heard on 12/8/98. GOLDEN BEES INDUSTRIES SDN BHD: Winding-up Petition --------------------------------------------------- Hongkong Bank Malaysia Bhd (petitioner)on 19/5/98 petitioned for the winding-up of Golden Bees Industries Sdn Bhd (respondent). The petition is directed to be heard on 25/9/98. HEADWIND INDUSTRIAL: Voluntary Winding-up ----------------------------------------- The members of Headwind Industrial (Malaysia) Sdn Bhd have resolved to wind-up the company on 30/6/98. Creditors of the company are required to submit their claims before 30/7/98. INTRA VISION SDN BHD: Winding-up Petition ----------------------------------------- Forms Media Teknologi Sdn Bhd (petitioner) on 1/6/98 petitioned for the winding-up of Intra Vision Sdn Bhd (respondent). The petition is directed to be heard on 25/9/98. KAMUNTING CORPORATION BHD: Results Announcement ----------------------------------------------- Kamunting Corporation Bhd (listed in the KLSE) announced a group post-tax loss of RM212.138mil for the year ended 31/3/98, compared to a post-tax profit of RM104.002mil previously. The losses were mainly due to provisions made for diminution in value of investments. MBf NORTHERN SECURITIES SDN BHD: Results Announcement ----------------------------------------------------- MBf Capital Bhd (listed in the KLSE), a unit MBf Northern Securities Sdn Bhd, has an excess of liabilities over assets of RM31.288mil and a shareholders' funds deficit of RM22.05mil. The broking unit's auditors had qualified MBf Northern's accounts subject to its ability to continue as a going concern due to the successful outcome of talks to restructure its financial obligations. MALAYSIAN PLANTATION BHD: Results Announcement ---------------------------------------------- Malaysian Plantation Bhd (listed in the KLSE) announced a post-tax loss of RM101.49mil for the year ended 31/3/98 compared to a post-tax profit of RM82.74mil previously. EPS turned from RM0.258 previously to a loss per share of RM0.316. MYCOM: Defaults Rock Real Estate Company ---------------------------------------- According to a news summary in the SCMP of July 3, Mycom, a Malaysian real-estate and brokerage company, said that some of its subsidiaries have defaulted on their loans due to a slump in business as Malaysia's economy has slowed. Mycom, with overall short-term borrowings of M$992.5 million, is in talks with its creditors to restructure its debt. PLUS ZONE SDN BHD: Winding-up Petition -------------------------------------- EAC Holdings (M) Sdn Bhd on 24/6/98 petitioned for the winding-up of Plus Zone Sdn Bhd. RENONG BHD: Credit Suisse First Boston to Aid in Plan ----------------------------------------------------- Futures World reports Renong Bhd has confirmed that Credit Suisse First Boston will help draw up a restructuring plan for the company. In a statement to the Kuala Lumpur Stock Exchange, the infrastructure giant said the restructuring plan has not been finalized. Renong was responding to a query over an article in a regional business daily which said the company would shed sizable stakes in some of its assets. SILVER JOY INDUSTRIES SDN BHD: Winding-up Petition -------------------------------------------------- City Finance Bhd (petitioner) on 25/5/98 petitioned for the winding-up of Silver Joy Industries Sdn Bhd (respondent). The petition is directed to be heard on 24/8/98. TOPLACE SDN BHD: Winding-up Petition ------------------------------------ Bank Industri Malaysia Bhd (petitioner) on 26/5/98 petitioned for the winding-up of Toplace Sdn Bhd (respondent). The petition is directed to be heard on 30/7/98. ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: PAL Gets Creditor Restraining Order -------------------------------------------------------- The Asian Wall Street Journal reports that the U.S. Bankruptcy Court of Northern California has extended an earlier order restraining American creditors and suppliers from taking action against Philippine Airlines (PAL). The earlier injunction issued June 22 was extended from July 2 to July 30. The extension reportedly gives PAL ample time to finish its rehabilitation plan. Last month the airline asked the Philippine Securities and Exchange Commission to appoint a rehabilitation committee due to its financial difficulties. This five-man interim rehabilitation committee has until July 24 to finish PAL's rehabilitation plan. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Princeton, NJ USA, and Beard Group, Inc., Washington, DC USA. Debra Brennan and Lexy Mueller, Editors. Copyright 1998. All rights reserved. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re- mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $875 per month delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. 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