TCRAP_Public/980717.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, July 17, 1998, Vol. 1, No. 103

                    Headlines


C H I N A   &   H O N G   K O N G

EMPORIUM GROUP: China Everbright may make provisions
GHIASPEED MOTORS CENTRE LIMITED: Winding-up notice
HONEST SOURCES HOLDINGS LIMITED: Winding-up notice
HOP FUNG STEVEDORES & TRANSPORTATION: Winding-up notice
J&A SECURITIES: Investigation into irregularities

SING TAO HOLDINGS: Chairman in talks on stake share


J A P A N  

DAIWA SECURITIES: Posts large losses
LAKE COMPANY: Negotiating with GE to sell operations
LONG TERM CREDIT: Sumitomo to vet LTCB before merger
NIKKO SECURITIES: Posts large losses
NOMURA SECURITIES: Posts large losses

TOMAKOMAI TOBU KAIHATSU KAISHA: Project to be retooled
YAMAICHI SECURITIES: Holds Y18 billion in customer assets


K O R E A

CHO HUNG BANK: Executive under investigation for loans
KIA MOTORS CORP: Car makers invited to submit bids
MIRABO CONSTRUCTION COMPANY: Starts creditor reconciliation
SAMYANG COMPANY: Allowed to start creditor reconciliation


M A L A Y S I A

EPE POWER CORP BHD: Possible default by associate
HO WAH GENTING BHD: Receivership of subsidiary
MASTER ALLOY TECHNOLOGIES: Placed in receivership
PENSPEN SDN BHD: Voluntary winding-up
RJC ENGINEERING SDN BHD: Winding-up petition

RIVER PARK SDN BHD: Winding-up petition
TRANS CABINS (M) SDN BHD: Winding-up petition
WANG ARTOR CREATIVE COMMUNICATION: Winding-up petition
WING TIEK: Despite losses, firm determined to stay afloat


T H A I L A N D

CHAROEN POKPHAND: Thais may sell off retail subsidiaries
ESSO THAILAND: Government to sell 12.5% stake


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

EMPORIUM GROUP: China Everbright may make provisions
----------------------------------------------------
According to the SCMP of July 16, China Everbright has
confirmed it may need to make provisions against its
investment in department store Emporium Group in Singapore.
It said its investment in Emporium was valued at $195
million as of December 31, comprising 3.2 per cent of its
assets of $6.1 billion at the same date. Should the
judicial managers decide to liquidate Emporium, China
Everbright would have to make provisions, which may be less
than $195 million.


GHIASPEED MOTORS CENTRE LIMITED: Winding-up notice
--------------------------------------------------
A notice in the Hong Kong Standard of July 16 says that a
petition for the winding-up of Ghiaspeed Motors Centre
Limited was presented to the High Court on July 2 by Li
King Mui, and the petition was directed to be heard before
the court at 9:30 am on July 29.


HONEST SOURCES HOLDINGS LIMITED: Winding-up notice
--------------------------------------------------
A notice on the Hong Kong Standard of July 16 says that a
petition was presented to the High Court on July 3 by Chan
Siu Yam for the winding up of Honest Sources Holdings
Limited, and the petition was directed to be heard before
the court at 9:30 am on July 29.


HOP FUNG STEVEDORES & TRANSPORTATION: Winding-up notice
-------------------------------------------------------
A notice in the Hong Kong Standard of July 16 says that a
petition for the winding-up of Hop Fung Stevedores &
Transportation Company Limited was presented to the High
Court on July 2 by Fan Chi Ping, and the petition was
directed to be heard before the court at 9:30 am on July
29.


J&A SECURITIES: Investigation into irregularities
-------------------------------------------------
J&A Securities, China's most profitable brokerage firm, was
being investigated as mainland financial regulators called
two senior executives in for questioning. It was confirmed
that top J&A officials, including chairman Zhang Guoqing
and president Yang Jun, two of Shenzhen's most prominent
financiers, were at the center of the investigation.
Officials said they were now also questioning deputy
president Kang Xiaoyang and merger and acquisitions
department Zhou Zhengkang.  

Unofficial reports spread quickly yesterday that certain
officials were on the run or had embezzled company funds
and squirreled them into their own accounts in Hong Kong.  
There were also rumors former deputy president Gong Hua
reported the irregularities to authorities out of spite
after he was one of several officials fired in May.  

Officials offered no formal details of the nature of the
allegations but the Shenzhen Securities and Exchange
Commission (SEC) and other mainland sources said the
investigation might linked to economic irregularities.   


SING TAO HOLDINGS: Chairman in talks on stake share
---------------------------------------------------
According to the SCMP of July 16, shares in publisher Sing
Tao Holdings traded heavily yesterday on rumors chairman
Sally Aw Sian had stepped up efforts to find a buyer for
part or all of her 50.04 percent stake in the company.

Ms Aw is believed to be facing cash-flow problems, which
prompted her to put the family business up for sale.

Jardine Fleming Securities is understood to be advising Ms
Aw on the disposal after an original $370 million sale of
the stake to property developer Mingly Corp collapsed last
month.

Sources said Mingly, controlled by pro-Beijing businessman
Cha Chi-ming, scrutinised Sing Tao's overall performance
and balance sheet, found them unsatisfactory and pulled out
of the previous buyout agreement. As a result, it would be
difficult to bargain for a price above Mingly's offer of
$1.76 per Sing Tao share in late May.

Founded by Ms Aw's father 60 years ago, Sing Tao owns
Chinese language newspaper Sing Tao Daily, English language
daily Hong Kong Standard and 43 per cent of publisher
Culturecom Holdings which operates loss-making Chinese
language flagship Tin Tin Daily.

Meanwhile, Sing Tao confirmed it sold its 51 per cent
interest in Shengang Newspaper Publications (Hong Kong) on
Monday to state-owned news unit Shenzhen News Publication
Centre for an undisclosed amount.

Shengang publishes the Chinese language daily Shenxing
Times, which has been circulated in Hong Kong and PRC since
1995 under a licence that is one of the key assets of Sing
Tao.

Sing Tao said a formal agreement detailing the terms of the
transaction would be released by October 12.

According to the Hong Kong Standard, Ms Aw has confirmed
her negotiations with third parties to sell all or part of
her 50 per cent stake in Sing Tao.

It says that after selling a 51 percent stake in Shengang
Newspaper Publications (Hong Kong) to Shenzhen News
Publication Centre, which publishes the Shenzhen Special
Zone Daily, 49 percent will remain with Sing Tao (China), a
wholly owned subsidiary of Sing Tao Holdings.

It also says that founded in 1995, Shensing Times is
published in more than 20 cities.


=========
J A P A N  
=========

DAIWA SECURITIES: Posts large losses
------------------------------------
The Asian Wall Street Journal reports that Japan's three
largest securities firms posted sharp declines in results
for the latest quarter due to sluggish trading volume and
falling brokerage commissions. These firms are Nomura
Securities Co., Daiwa Securities Co., and Nikko Securities
Co. Profits of Daiwa tumbled 84% in the April-to-June
quarter.  

Daiwa Securities said its unconsolidated pretax
profit tumbled to 2.40 billion yen from 15.32 billion yen,
while operating revenue slumped 22% to 62.19 billion yen
from 79.62 billion yen.

Two of the firms also lost market share amid corporate
scandals. Daiwa's share fell to 7% from 9.6%, and Nikko's
share sank to 4.8% from 8.2%.  All three companies were
involved in corporate scandals; Nomura and Daiwa were
accused of entertaining Finance Ministry officials
suspected of taking briberies, whereas Nikko was punished
for improperly compensating a politician.


LAKE COMPANY: Negotiating with GE to sell operations
----------------------------------------------------
Kyodo News reports Lake Co. has entered into negotiations
with GE Capital Services Corp. of the United States to sell
its operations, sources at the Osaka-based consumer loan
company said Thursday.

Lake, founded in 1964, has fallen into financial trouble
due to an increase in problem loans resulting from Japan's
economic slump. The company has a workforce of around 2,800
and operates some 510 branches across Japan. Its
outstanding balance of loans amounts to 529.5 billion
yen.


LONG TERM CREDIT: Sumitomo to vet LTCB before merger
----------------------------------------------------
The SCMP of July 16 shows a Bloomberg article which says
that Sumitomo Trust & Banking Co and Long-Term Credit Bank
of Japan have denied speculation in currency markets that
they were planning to cancel a scheduled merger. A
spokesman said a committee has been set up for a merger and
there is no change in the direction of reaching a basic
agreement by autumn.

Speculation the merger may not go ahead undercut confidence
in Japan's financial system and helped push the US dollar
higher.

According to the Hong Kong Standard, Sumitomo Trust &
Banking said yesterday it would scour LTCB's loan books to
make sure only sound assets would be taken over by any
combined entity.

Chairman of Sumitomo said the bank would judge LTCB's sound
assets on its own, based on the outcome of inspections of
LTCB currently being carried out by the government
Financial Supervisory Agency.

He added that they must make the merger successful as the
financial world is closely watching the outcome of the
merger talks, on whether it could help solve problems in
Japan's financial system.

The basic scheme would likely to be concluded by the end of
September.


NIKKO SECURITIES: Posts large losses
------------------------------------
The Asian Wall Street Journal reports that Japan's three
largest securities firms posted sharp declines in results
for the latest quarter due to sluggish trading volume and
falling brokerage commissions. These firms are Nomura
Securities Co., Daiwa Securities Co., and Nikko Securities
Co.

Nikko Securities said its unconsolidated pretax loss
widened sharply to 7.39 billion yen from 1.93 billion yen,
marking its third consecutive quarter of losses, as its
operating revenue slumped 19% to 47.44 billion yen from
58.40 billion yen.

Two of the firms also lost market share amid corporate
scandals. Daiwa's share fell to 7% from 9.6%, and Nikko's
share sank to 4.8% from 8.2%.  All three companies were
involved in corporate scandals; Nomura and Daiwa were
accused of entertaining Finance Ministry officials
suspected of taking briberies, whereas Nikko was punished
for improperly compensating a politician.


NOMURA SECURITIES: Posts large losses
-------------------------------------
The Asian Wall Street Journal reports that Japan's three
largest securities firms posted sharp declines in results
for the latest quarter due to sluggish trading volume and
falling brokerage commissions. These firms are Nomura
Securities Co., Daiwa Securities Co., and Nikko Securities
Co. Profits of Nomura Securities Company tumbled 58% in the
April-to-June quarter.  

Nomura Securities said unconsolidated pretax profit slumped
to 14.79 billion yen ($105.7 million) in the April-to-June
quarter from 34.93 billion yen, as overall operating
revenue fell 17% to 91.22 billion yen from 109.37 billion
yen.

All three companies were involved in corporate scandals;
Nomura and Daiwa were accused of entertaining Finance
Ministry officials suspected of taking briberies, whereas
Nikko was punished for improperly compensating a
politician.


TOMAKOMAI TOBU KAIHATSU KAISHA: Project to be retooled
------------------------------------------------------
Yomiuri Shimbun reports the government said a new company
will be established to take over a collapsed national
development project in Tomakomai, Hokkaido.

The existing company operating the project will be
liquidated and the losses recovered by forcing financial
institutions to abandon their loan claims.

The government and the LDP plan to establish the new
company with capital of between 40 billion yen and 60
billion yen, to be paid jointly by the central and Hokkaido
put up governments.

The new company will purchase the plots of land currently
owned by Tomakomai Tobu Kaihatsu Kaisha--the joint
operation established by the government and private-sector
firms operating the project--and will take over its
business.

The company owes a total of 177.1 billion yen.

Out of that amount, 93.1 billion yen is owed to North East
Finance of Japan and 84 billion yen to private financial
institutions.

The company was forced to borrow new funds to meet an
interest burden of 8.7 billion yen a year.

The existing company will repay loans with the 40 billion
yen to 60 billion yen obtained from the sale of the plots
and will later go into liquidation.


YAMAICHI SECURITIES: Holds Y18 billion in customer assets
---------------------------------------------------------
The Nihon Keizai reports Yamaichi Securities Co. still held
18 billion yen in customer assets at the end of June, as
about 100,000 customers had yet to request the failed
brokerage to return their securities and cash, government
sources said. Of the total, 15 billion yen was in stocks
and other securities, with the remaining 3 billion yen in
cash.

Financial Supervisory Agency representatives say Yamaichi
may have legal rights to cash after it officially disbands
if owners have not replied to notifications. Securities,
however, will have to be handed over to the government for
safekeeping until the owners turn up.

A member of the ruling Liberal Democratic Party voiced
hopes that Yamaichi would be allowed to use the remaining
customer assets to pay off subordinated liabilities.


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

CHO HUNG BANK: Executive under investigation for loans
------------------------------------------------------
The Korean language Maeil Kyungje reports that Mr. Hur
Chung-wook, a high-ranking official at Cho Hung Bank is
under investigation in relation to the bank's large loan
making. Mr. Hur is alleged to have accepted a commission
for the bank's decision to lend money to Juriwon Department
Store located in a city of Ulsan.  

Korean banking industry sources said that this may result
in a shuffle of Korean banks' top-level management.  

The bank has been ordered to restructure by the Korean
government or face insolvency.


KIA MOTORS CORP: Car makers invited to submit bids
--------------------------------------------------
According to the Hong Kong Standard of July 16, creditors
announced yesterday the opening of the tender for Kia and
Asia Motors Corp, urging bidders to submit simultaneous
offers by July 24 to acquire at least 51 per cent of stakes
in both firms.

Invitations will be sent to Samsung Motors, Hyundai Motor
and Daewoo Motor, and 20 foreign firms mostly in the US,
Japan and Europe.

Korea Development Bank governor Lee Keun Young offered to
slash the capital of Kia Motors and Asia Motors by 90 per
cent and recapitalise them through new rights issues.

With Kia's paid-in capital now estimated at 372 billion
won, the new issues will raise its equity to 1.5 trillion
won. He set the price floor at over the nominal value of
5,000 won a share. Minority stakes would also be auctioned
to foreigners.

Lee promised to write off debts but said the amount would
be unveiled on July 27 before selecting auction winners.


MIRABO CONSTRUCTION COMPANY: Starts creditor reconciliation
-----------------------------------------------------------
Seoul District Court advertised in the Korean language
Maeil Kyungje that Mirabo Construction company has started
a creditor reconciliation procedure. The company's address
is 228-1 Yongdap-dong, Sungdong-gu, Seoul and the president
is Mr. Kim Byung-rin. Creditors have until August 11, 1998
to file their claims.


SAMYANG COMPANY: Allowed to start creditor reconciliation
---------------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, Samyang Food company and one of its
affiliates, Samyang Agriculture and Sea Food Co., were
allowed to start a creditor reconciliation procedure by
Seoul District Court.


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

EPE POWER CORP BHD: Possible default by associate
-------------------------------------------------
EPE Power Corp Bhd, listed in the KLSE, said the scheme of
arrangement by Time Engineering Bhd, seeking court
protection against creditors, will trigger a default on a
syndicated project finance facility taken by an associate
of the company, Powertron Resources Sdn Bhd, to finance its
power plant in Sabah.

Powertron has a syndicated project finance facility of
RM330mil.

The facility is secured against the shares of Powertron and
a debenture on the fixed and floating assets of the
company.

Powertron is expected to hold discussions with its lender
to waive this in the event of a default.


HO WAH GENTING BHD: Receivership of subsidiary
----------------------------------------------
Wholly owned subsidiary of Ho Wah Genting Bhd (listed in
the KLSE), Master Alloy Technologies (MAT), has been put
under receivership and managership by Hong Leong Bank.

This arose from a default of RM6,378,533 claimed by Hong
Leong Bank.

MAT was said to be affected by high interest rates and poor
performance in the motor industry.

Ho Wah Genting Bhd acquired MAT last year and has since
suffered low productivity and high production cost.

The default may give rise to a default by Ho Wah Genting as
the corporate guarantor for MAT in respect of banking
facilities of RM5mil with Oriental Bank.


MASTER ALLOY TECHNOLOGIES: Placed in receivership
-------------------------------------------------
Wholly owned subsidiary of Ho Wah Genting Bhd (listed in
the KLSE), Master Alloy Technologies (MAT), has been put
under receivership and managership by Hong Leong Bank.

This arose from a default of RM6,378,533 claimed by Hong
Leong Bank.

MAT was said to be affected by high interest rates and poor
performance in the motor industry.

Ho Wah Genting Bhd acquired MAT last year and has since
suffered low productivity and high production cost.

The default may give rise to a default by Ho Wah Genting as
the corporate guarantor for MAT in respect of banking
facilities of RM5mil with Oriental Bank.


PENSPEN SDN BHD: Voluntary winding-up
-------------------------------------
The members of Penspen Sdn Bhd on 13/7/98 resolved to wind-
up the company voluntarily. Creditors are requested to
submit their claims before 17/8/98.


RJC ENGINEERING SDN BHD: Winding-up petition
--------------------------------------------
Boustead-Johnson Edaran Sdn Bhd on 4/6/98 petitioned for
the winding-up of RJC Engineering Sdn Bhd. The petition is
directed to be heard on 20/8/98.


RIVER PARK SDN BHD: Winding-up petition
---------------------------------------
Government of Malaysia on 30/4/98 petitioned for the
winding-up of River Park Sdn Bhd. The petition is directed
to be heard on 14/8/98.


TRANS CABINS (M) SDN BHD: Winding-up petition
---------------------------------------------
Cycleworld Corporation Sdn Bhd on 15/6/98 petitioned for
the winding-up of Trans Cabins (M) Sdn Bhd. The petition is
directed to be heard on 25/9/98.


WANG ARTOR CREATIVE COMMUNICATION: Winding-up petition
------------------------------------------------------
R&F Media Services Sdn Bhd on 4/6/98 petitioned for the
winding-up of Wang Artor Creative Communication Sdn Bhd.
The petition is directed to be heard on 14/10/98.


WING TIEK: Despite losses, firm determined to stay afloat
---------------------------------------------------------
Wing Tiek Holdings Bhd, a Malaysian building materials
company, said it intends to remain afloat as a going
concern despite debts.

Auditor KPMG Peat Marwick said Wing Tiek is technically
insolvent as its shareholder funds would be in deficit if
the company didn`t incorporate recent revaluation reserve.
The auditor said a loss of 274.3 million ringgit has
resulted in current liabilities exceeding current accounts
and the depletion of shareholders' funds.

According to KPMG, the continuation of Wing Tiek depends on
obtaining financial support from bankers and creditors and
achieving profitable operations.

Wing Tiek said it has obtained a restraining order to
prevent its creditors from starting proceedings.

The company and its subsidiaries have defaulted on interest
and principal payments to financial institutions amounting
to 381 million ringgit.


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

CHAROEN POKPHAND: Thais may sell off retail subsidiaries
--------------------------------------------------------
According to the Hong Kong Standard of July 16, Charoen
Pokphand Group and the Central Department Store Group are
negotiating with foreign partners for possible sales of
retail subsidiaries. The Nation newspaper said Charoen
Pokphand was trying to negotiate a sale of its 7-Eleven
convenience store chain franchise in Thailand to Taiwan's
President Group. It said a deal was expected this month
with President likely to buy a 49 per cent stake in a new
holding company that would own the franchise in Thailand.
The paper also said the Central Department Store Group was
negotiating to sell its discount retail chain company
Big-C.


ESSO THAILAND: Government to sell 12.5% stake
---------------------------------------------
Reuters reports the Thai government hopes to raise around
$250 million from the sale of its 12.5 percent stake in
Esso Thailand, an official at the National Energy Policy
Office (NEPO) said on Thursday.

The finance ministry was negotiating with potential buyers
and expected to conclude the deal by September, the
official told Reuters.

The ministry purchased its Esso shares for 4.34 billion
baht ($105 million) in 1994. Exxon holds the remaining 87.5
percent. The government decided to sell the shares in 1997,
preferably back to Exxon. It named J.F. Thanakom and
Dresdner Kleinwort Benson as financial advisers.


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,
DC USA.  Debra Brennan and Lexy Mueller, Editors.

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