/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/980720.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 Monday, July 20, 1998, Vol. 1, No. 104 Headlines C H I N A & H O N G K O N G BERJAYA HOLDINGS: Results announcement BLUEBO WOOD SCIENTIFIC PRODUCT: Winding-up notice EVEN BETTER APPAREL LIMITED: Winding-up petition FORLUXE SECURITIES: Missing Forluxe chief held at airport GALAXY POOL ENGINEERING COMPANY LIMITED: Winding-up notice HONG KONG DAILY NEWS HOLDINGS: HK daily news loses $58.5 m J&A SECURITIES: Nervous J&A clients bail out KEE FUNG SING INTERNATIONAL FINANCE: Winding-up notice MARITIME AND TRADING ASIA LIMITED: Voluntary liquidation MEGA-TREND CONSULTANCY LIMITED: Voluntary liquidation MERIDIEN CHINA LIMITED: Voluntary liquidation ON SHING JEWELLERY & GOLDSMITH: Winding-up notice ON TAT DECORATION ENGINEERING LIMITED: Winding-up notice PRO-KNIT MANUFACTURING LIMITED: Winding-up notice RENO TRADING COMPANY LIMITED: Winding-up notice SEARAINBOW HOLDING: Assets frozen after loan default SIMON & TOM ENGINEERING SPECIALIST: Winding-up notice SINKO COMPANY LIMITED: Winding-up notice TAT FUNG STAINLESS STEEL ENGINEERING: Winding-up notice TIEN LAI INTERNATIONAL FINANCE: Winding-up notice TUNG MING PRINTING& DYEING: Winding-up notice WINTON COMMERCE LTD: Winding-up notice WITON ERA LIMITED: Voluntary liquidation I N D O N E S I A PERTAMINA: Owes 260 million rupiah to subsidiary J A P A N NIPPON STEEL CHEMICAL: Long term debt rating downgraded K O R E A DONG-AH CONSTRUCTION: Added to corporate workout list KEOPYUNG GROUP: Added to corporate workout list KIRIN COMPANY: Starts Creditor Reconciliation SK SECURITIES: Cash injection shores up SK securities arm UBANG COMPANY: Added to corporate workout list M A L A Y S I A AMMB HOLDINGS: Fortis likely to obtain stake AXIS SDN BHD: Winding-up petition FORTRESS VALLEY SDN BHD: Voluntary winding-up HIGH MEAN PROPERTIES SDN BHD: Voluntary winding-up JEURO DEVELOPMENT SDN BHD: Winding-up petition MBF CAPITAL: Suspension on trading licence lifted TIME ENGINEERING: Confirms restructuring plan S I N G A P O R E L&M GROUP INVESTMENTS: To roll over $54 m loan facility WING TAI: Denies reports of low cashflow T H A I L A N D PHATRA THANAKIT: Shareholders approve merger STAR BLOCK GROUP: To submit restructuring plan ================================= C H I N A & H O N G K O N G ================================= BERJAYA HOLDINGS: Results announcement -------------------------------------- Berjaya Holdings, a Hong Kong company, reported an attributable loss of $16.37 million for the year to April, compared with attributable profit of $1.4 million made the previous year. The company attributed the poor result to an exceptional loss of $22.3 million made on overseas investments. BLUEBO WOOD SCIENTIFIC PRODUCT: Winding-up notice ------------------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for Bluebo Wood Scientific Product & Equipment (Hong Kong) Company Limited. The petition was presented on May 25, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 357. of 1998. EVEN BETTER APPAREL LIMITED: Winding-up petition ------------------------------------------------ Notice is hereby given that a petition for the winding-up of Even Better Apparel Limited by the High Court of Hong Kong was, on the 6th day of July, 1988, presented to the said Court by Law Kai Cheung and the petition is heard on 5th of August, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. FORLUXE SECURITIES: Missing Forluxe chief held at airport --------------------------------------------------------- According to the SCMP of July 17, the chairman of failed Forluxe Securities James Mui Kwong-nok and his brother Gordon Mui Wing-fat were arrested at the airport early Monday morning in connection with conspiracy to defraud. James Mui disappeared in May for Singapore allegedly taking $32 million in loans from Forluxe Securities, and sparked the liquidation of the brokerage. The provisional liquidator, Nelson Wheeler Corporate Reconstruction and Insolvency, said liquidators were seeking interviews with the Mui brothers. The liquidators received claims for $56.29 million from 526 clients compared with just $17.05 million in shares held as of June 1, a shortfall of almost $40 million, which is expected to rise further because of the volatile stock market. An initial investigation last month indicated that the shortfall arose as clients' shares held in the broker's account in the central clearinghouse were allegedly illegally transferred to Forluxe Finance. The provisional liquidator said its prime job was to collect the money James Mui allegedly took while the stock exchange and about 500 clients were still in talks over compensation plans. The Hong Kong Standard reported on the same incident saying that James Mui's disappearance in May left Forluxe unable to operate. Last year James Mui's licence was suspended for five days and he was fined $20,000 for illegally using clients' shares. The report says that according to the Commercial Crime Bureau, about 270 clients had lodged complaints claiming up to $47 million from Forluxe. The number of complaints was believed to be quite close to the number of people who had lost money. Although Forluxe, which was set up in 1993 and became a limited company last year, is believed to have between 650 and 800 investors, many of the accounts were dormant. GALAXY POOL ENGINEERING COMPANY LIMITED: Winding-up notice ---------------------------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for Galaxy Pool Engineering Company Limited. The petition was presented on May 24, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0. 268 of 1998. HONG KONG DAILY NEWS HOLDINGS: HK daily news loses $58.5 m ---------------------------------------------------------- According to the scmp of July 17, Hong Kong Daily News Holdings' unaudited accounts revealed yesterday a net loss of $58.5m for the year to March 31 on a turnover of $221.9 million. J&A SECURITIES: Nervous J&A clients bail out -------------------------------------------- According to the SCMP of July 17, sources said nervous account-holders of People's Liberation Army-backed brokerage J&A Securities have been cancelling accounts and transferring their shares elsewhere amid an alleged financial scandal involving four of its most senior executives. An SFC spokesman said yesterday it was concerned the incident at its mainland headquarters could affect the operations of the Hong Kong-registered entity. The company gave assurances that its operations and financial viability had not been affected by the allegations. J&A outlets in Shenzhen and Hong Kong reported a small but growing number of clients, mainly from retail investors, transferring shares or withdrawing funds but adamantly denied it amounted to a run. Company officials said that in Hong Kong, about $4 million worth of shares were collected on Wednesday compared with the daily average of between $1 and $2 million. The allegations focus on chairman Zhang Guoqing and president Yang Jun -- two of Shenzhen's most prominent financiers -- as well as deputy president Kang Xiao-yang and merger and acquisitions chief Zhou Zhengkang. Details of the allegations remained under wraps although regulatory sources confirmed they centered on economic irregularities such as corruption. Yesterday, J&A's Hong Kong-based subsidiaries -- J&A Futures (Hong Kong) and J&A Securities (Hong Kong) -- issued a statement rejecting unsourced rumors in Chinese language newspapers that it had lost $6 billion trading Hang Seng Index futures. At J&A's Ren Min Nan Road outlet in Shenzhen, an institutional salesman said he had handled about 10 A-share clients and 4 B-share clients who had asked to change to another brokerage yesterday, each involving shares worth between 100,000 yuan and 300,000 yuan. At its Great Theatre trading outlet, a company official said more than 10 customers transferred their shares yesterday citing nervousness stemming from newspaper reports. In Hong Kong, a company official said there had been no panic at the office, and investors were collecting their shares as usual. J&A Futures said its futures trading was conducted on behalf of clients and the two subsidiaries had not been trading on their own accounts. According to the Hong Kong Standard, J&A said it would pursue with legal action the issue in which a Chinese language newspaper based in Hong Kong published a report on J&A's alleged malpractice in the securities market. J&A Futures (Hong Kong) and J&A Securities (Hong Kong) said they were never involved in any speculative activities on futures over the past three years and J&A Futures had only provided futures trading service for clients in Hong Kong since its establishment in August 1997. Hong Kong's SFC could be asked to delve into the bank accounts of J&A Securities officials if requested to do so by their mainland counterparts as part of their investigation into alleged financial irregularities, but if so, SFC would have to serve notices to the banks to tell them what the regulator needs to look at. Unconfirmed reports have suggested that certain officials were on the run or had embezzled company funds and hidden them in their Hong Kong bank accounts. J&A was the mainland's most profitable brokerage last year and the largest in terms of assets, following aggressive expansion. The mainland has launched a campaign, headed by Premier Zhu Rongji, against corruption and irregularities in the financial sector. It pledged to shut down mismanaged companies and ordered executives of state banks to pare bad debt or face dismissal. KEE FUNG SING INTERNATIONAL FINANCE: Winding-up notice ------------------------------------------------------ A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for Kee Fung Sing International Finance Co Limited. The petition was presented on May 26, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 365. of 1998. MARITIME AND TRADING ASIA LIMITED: Voluntary liquidation -------------------------------------------------------- The companies ordinance (Chapter 32) in the matter of Maritime and Trading Asia Limited (in members` voluntary liquidation). Notice is hereby given that the creditors of the abovenamed Company, which is being wound up voluntarily, are required on or before July 28, 1998 to send in their names, addresses and particulars of their debts or claims to the liquidators of the said company. MEGA-TREND CONSULTANCY LIMITED: Voluntary liquidation ----------------------------------------------------- The companies ordinance (Chapter 32) in the matter of Mega- Trend Consultancy Limited (in members' voluntary liquidation). Notice is hereby given that the creditors of the above named company, which is being wound up voluntarily, are required on or before August 20, 1998 to send in their names, addresses and particulars of their debts or claims to the liquidators of the said company. MERIDIEN CHINA LIMITED: Voluntary liquidation --------------------------------------------- The companies ordinance (Chapter 32) in the matter of Meridien Annual Limited (in members' voluntary liquidation). Notice is hereby given that the creditors of the abovenamed Company, which is being wound up voluntarily, are required on or before July 28, 1998 to send in their names, addresses and particulars of their debts or claims to the liquidators of the said company. ON SHING JEWELLERY & GOLDSMITH: Winding-up notice ------------------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for On Shing Jewellery & Goldsmith Company Limited. The petition was presented on May 26, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0. 366 of 1998. ON TAT DECORATION ENGINEERING LIMITED: Winding-up notice -------------------------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for On Tat Decoration Engineering Limited. The petition was presented on May 28, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 372. of 1998. PRO-KNIT MANUFACTURING LIMITED: Winding-up notice ------------------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for Pro-Knit Manufacturing Limited. The petition was presented on May 27, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 369. of 1998. RENO TRADING COMPANY LIMITED: Winding-up notice ----------------------------------------------- A notice of a July 17, 1998 winding-up order appeared in the Hong Kong Standard for Reno Trading Company Limited. The petition was presented on April 24, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 200. of 1998. SEARAINBOW HOLDING: Assets frozen after loan default ---------------------------------------------------- According to the Hong Kong Standard of July 17, a PRC court has sealed part of the assets of Searainbow Holding after it defaulted on a 20.5 million yuan loan in bank deposits and stock-piles from the China Construction Bank. The court also sealed 4.62 million institutional shares of Qinghai Department Store held by Searainbow. A spokesman for listed and debt-ridden Searainbow said the firm's chemical fibre plant had no output because production costs had exceeded the market price of its product, leaving the firm with no income to service debts or pay its workers. He said the company was doomed if banks continued to demand it to make payments on schedule. He also said the company is still in danger of being taken to court or having additional assets sealed at any moment. Searainbow's 1997 annual report showed that the firm's current liabilities reached 211.4 million yuan by the end of last year, while current assets stood at 93 million yuan. The firm said it defaulted on the loan due to pressure from Asia's financial crisis. Analysts said the government was likely to bail out the company to calm jittery stock markets and avoid unemployment problems. Besides, PRC company law did not cover bankruptcy for listed firms, and legislators were still hashing out the long-awaited securities law. One option was to sell off non-performing assets to another company, which would fund the purchase with cash from the provincial government. Another option was for the firm to negotiate lower interest rates and a new payment schedule on loans. SIMON & TOM ENGINEERING SPECIALIST: Winding-up notice ----------------------------------------------------- A notice of a July 8, 1998winding-up order appeared in the Hong Kong Standard for Simon & Tom Engineering Specialist Limited. The petition was presented on April 24, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 269. of 1998. SINKO COMPANY LIMITED: Winding-up notice ---------------------------------------- A notice of a July 17, 1998 winding-up order appeared in the Hong Kong Standard for Sinko Company Limited. The petition was presented on April 24, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 341. of 1998. TAT FUNG STAINLESS STEEL ENGINEERING: Winding-up notice ------------------------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for Tat Fung Stainless Steel Engineering Company Limited. The petition was presented on May 28, 1998 to the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0. 371 of 1998. TIEN LAI INTERNATIONAL FINANCE: Winding-up notice ------------------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for Tien Lai International Finance & Investment Limited. The petition was presented on May 22, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 354. of 1998. TUNG MING PRINTING& DYEING: Winding-up notice --------------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for Tung Ming Printing & Dyeing Manufactory Limited. The petition was presented on May 27, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 272. of 1998. WINTON COMMERCE LTD: Winding-up notice -------------------------------------- A notice of a July 8, 1998 winding-up order appeared in the Hong Kong Standard for Winton Commerce Limited. The petition was presented May 26, 1998 in the high court of the Hong Kong Administrative Region Court of First Instance, Companies Winding-up Proceedings N0 363. of 1998. WITON ERA LIMITED: Voluntary liquidation ---------------------------------------- The companies ordinance (Chapter 32) in the matter of Witon Era Limited (in members' voluntary liquidation). Notice is hereby given that the creditors of the abovenamed Company, which is being wound up voluntarily, are required on or before August 5, 1998 to send in their names, addresses and particulars of their debts or claims to the liquidators of the said company. ================= I N D O N E S I A ================= PERTAMINA: Owes 260 million rupiah to subsidiary ------------------------------------------------ Pertamina, an Indonesian refinery firm, said it owed 260 million rupiah (US$18.1 million) to its PT Elnusa subsidiary as of March. Pertamina is facing a cash-flow problem because of the government's failure to reimburse fuel subsidies to Pertamina. Elnusa's president, Aswad Dipo, said Pertamina managed to pay Elnusa only 150 million rupiah of the total 450 billion rupiah the subsidiary spent for the maintenance of Pertamina's seven refineries. Mr Aswad said he hopes Pertamina will pay the rest of the debt soon, as Elnusa also is facing a cash-flow problem. ========= J A P A N ========= NIPPON STEEL CHEMICAL: Long term debt rating downgraded ------------------------------------------------------- Japan Rating & Investment Information said it downgraded its long-term debt rating of Nippon Steel Chemical Co. to double-B plus from triple-B minus. The action affects 35 billion yen of the company's convertible bonds, the rating agency said. The rating company explained that sluggish domestic demand and deteriorating profitability from exports to Asia have intensified, weighting down the company's earnings. ========= K O R E A ========= DONG-AH CONSTRUCTION: Added to corporate workout list ----------------------------------------------------- The Korean language Maeil Kyungje reports that Keopyung Group, Dong-ah Construction Company, and Ubang Company will be added to the corporate workout list for restructuring. Dong-ah Construction Company has been under financial scrutiny by Samil Accounting Company and prepared a restructuring plan that focuses on improving the company's debt payment capabilities. The workout procedure is aimed at helping firms hit by temporary liquidity shortages to regain financial health and competitiveness through debt relief and creditor offered restructuring programs. It is also hoped to reduce banks' non-performing loans by improving borrowers' debt payment capabilities. However, the workout can also result in the shareholders being asked to reduce capital and the disposal of unprofitable assets and subsidiaries. There is also a compulsory shake-up of the top management of the workout conglomerates. KEOPYUNG GROUP: Added to corporate workout list ----------------------------------------------- The Korean language Maeil Kyungje reports that Keopyung Group, Dong-ah Construction Company, and Ubang Company will be added to the corporate workout list for restructuring. Keopyung Group's three companies (i.e., Keopyung Chemistry, Keopyung Steel Chemistry, and Keopyung Cygnetics) have been selected by Cho Hung Bank, its main creditor bank, as a target of the restructuring program and will convene a creditor meeting with a workout plan. The workout procedure is aimed at helping firms hit by temporary liquidity shortages to regain financial health and competitiveness through debt relief and creditor offered restructuring programs. It is also hoped to reduce banks' non-performing loans by improving borrowers' debt payment capabilities. However, the workout can also result in the shareholders being asked to reduce capital and the disposal of unprofitable assets and subsidiaries. There is also a compulsory shake-up of the top management of the workout conglomerates. KIRIN COMPANY: Starts Creditor Reconciliation --------------------------------------------- According to the Korean langauge Maeil Kyungje's Business Brief Section, Pusan District Court has permitted Kirin Company to start its creditor reconciliation procedure. SK SECURITIES: Cash injection shores up SK securities arm --------------------------------------------------------- The SCMP of July 17 shows a Bloomberg article which says that SK Group, South Korea's fifth-largest business group, will inject 400 billion won into its struggling securities arm to boost its chances of survival. The group will double the capital of SK Securities to 800 billion won by selling new shares to other group affiliates and foreign investors. SK Group owns SK Corp, the nation's largest oil refinery, and 42 other firms. The move comes in response to a government review of struggling brokerage firms in its attempt to reform the teetering financial sector. SK Group chairman bought shares of SK Securities early this month, raising his stake to 3.92 per cent from 3.69 per cent, as part of SK Group's efforts to keep the brokerage afloat. The Financial Supervisory Commission said SK Securities and three other brokerages failed to meet capital standards at the end of March. SK Securities is the only one which has not yet been targeted for closure. SK Securities was one of the country's best performers in international financing in 1996 when Korean brokerages first ventured into offshore markets. Raising money in offshore markets allowed SK Securities to benefit from relatively cheap borrowing costs. At that time, Korean companies were able to borrow money at 20 to 30 basis points above the London Interbank Offered Rate. The brokerage put the dollars it borrowed, along with its own capital, into stocks and other securities in other countries in Asia and elsewhere. As a result of the currency crisis in Asia at the end of last year, many of these investments became almost worthless. In the year to March, it lost 342.2 billion won, or 17,495 won a share, almost six times the loss recorded in the previous year. The company is also involved in a legal dispute with JP Morgan, which says it is owed about $500 million by SK and other companies in connection with derivatives contracts that lost money. UBANG COMPANY: Added to corporate workout list ---------------------------------------------- The Korean language Maeil Kyungje reports that Keopyung Group, Dong-ah Construction Company, and Ubang Company will be added to the corporate workout list for restructuring. Ubang Company has been chosen as a workout target by Seoul Bank and is planning to hold a creditor meeting. The workout procedure is aimed at helping firms hit by temporary liquidity shortages to regain financial health and competitiveness through debt relief and creditor offered restructuring programs. It is also hoped to reduce banks' non-performing loans by improving borrowers' debt payment capabilities. However, the workout can also result in the shareholders being asked to reduce capital and the disposal of unprofitable assets and subsidiaries. There is also a compulsory shake-up of the top management of the workout conglomerates. =============== M A L A Y S I A =============== AMMB HOLDINGS: Fortis likely to obtain stake -------------------------------------------- Singapore BusinessTimes reports the Fortis Group, a Dutch- Belgian bank and insurer, has beaten the Government of Singapore Investment Corporation (GIC) to the negotiating table for a stake in Malaysia's banking group AMMB Holdings Bhd, industry sources said. The sources said that Bank Negara, the Malaysian central bank, has given Arab-Malaysian Corporation Bhd (Amcorp), which owns a 43 per cent stake in AMMB, the greenlight to begin negotiations with Fortis for the sale of a 15 per cent stake in AMMB. It is not immediately known if GIC is still in the running for a slice of the banking group. GIC officials could not be contacted for comment late yesterday. A 15 per cent stake of AMMB, or close to 60 million shares, is currently worth RM101.4 million based on yesterday's closing price of RM1.69 a share. Should the negotiations prove fruitful, Amcorp would be able to use the proceeds to trim its borrowings, estimated at over RM1 billion. Debt-laden Amcorp had been seeking out buyers for its 43 per cent stake in AMMB since early this year. News reports in January had said that Amcorp was discussing with state investment fund Pemodalan Nasional Bhd for the sale of a 20 per cent stake in AMMB. However, the deal fizzled out amid a public outcry of a bailout. AXIS SDN BHD: Winding-up petition --------------------------------- Tan Kim Wah on 3/7/98 petitioned for the winding-up of Axis Sdn Bhd. FORTRESS VALLEY SDN BHD: Voluntary winding-up --------------------------------------------- The members of Fortress Valley Sdn Bhd on 10/7/98 resolved to wind-up the company voluntarily. Creditors of the company are requested to submit their claims before 17/8/98. HIGH MEAN PROPERTIES SDN BHD: Voluntary winding-up -------------------------------------------------- The members of High Mean Properties Sdn Bhd on 14/7/98 resolved to wind-up the company voluntarily. Creditors are required to submit their claims before 17/8/98. JEURO DEVELOPMENT SDN BHD: Winding-up petition ---------------------------------------------- Teo Teck Huat (M) Sdn Bhd on 29/6/98 petitioned for the winding-up of Jeuro Development Sdn Bhd. The petition is directed to be heard on 26/11/98. MBF CAPITAL: Suspension on trading licence lifted ------------------------------------------------- Singapore BusinessTimes cites a Reuters report that MBf Capital yesterday said the suspension of its stockbroking subsidiary's trading licence had been lifted, effective July 12. MBf Northern Securities' licence was suspended on May 9 because the company failed to meet the minimum capital requirement. Stockbroker OSK Holdings said last week it had agreed to buy a 70 per cent stake in MBf Northern Securities for 8.39 million Malaysian ringgit (S$3.4 million). TIME ENGINEERING: Confirms restructuring plan --------------------------------------------- Time Engineering Bhd. confirmed that the company and nine of its units in the telecommunications and related businesses are undergoing a restructuring plan. The exercise involves a debt and capital restructuring. Time Engineering was granted nine months of court protection from creditors owed more than four billion ringgit. ===================== P H I L I P P I N E S ===================== ================= S I N G A P O R E ================= L&M GROUP INVESTMENTS: To roll over $54 m loan facility ------------------------------------------------------- Singapore BusinessTimes reports specialist engineering contractor L&M Group Investments is expected to roll over its $54 million loan facility. L&M had technically defaulted on the loan at the end of last year when it breached one of the facility's covenants but had obtained a roll-over of the amounts outstanding until July 19. A banking source said a month's extension of the July 19 deadline is expected to be granted by Monday while details and terms, like pricing of the roll-over, were being ironed out by a 12-bank syndicate led by ABN-Amro of The Netherlands. WING TAI: Denies reports of low cashflow ---------------------------------------- Singapore BusinessTimes reports listed Wing Tai Holdings has been meeting analysts and fund managers to assure them it is in no danger of running out of working capital, despite being burdened by more than $1.3 billion in loans. Wing Tai closed its 1998 financial year on June 30 and its results are expected to be announced within two months. Going by the July issue of The Estimate Directory, the market consensus is that Wing Tai would make $78.4 million in net profits this year, down 55 per cent from a year ago. Total loans grew some $400 million in six months to hit more than $1.3 billion at the end of 1997, the latest available figure. Wing Tai's gearing -- debt to equity ratio, a measure of its indebtedness compared to shareholders funds -- exceeded the 1.0 benchmark last year. This means the company is now financing its assets more through borrowings than internal funds. A substantial part of these assets is condominiums and houses whose sales have been slow-moving in the current market. =============== T H A I L A N D =============== PHATRA THANAKIT: Shareholders approve merger -------------------------------------------- Singapore BusinessTimes reports shareholders at Thai finance firm Phatra Thanakit yesterday approved plans to merge with Thai Farmers Bank, the country's second largest commercial bank. They also approved the transfer of the firm's 48.99 per cent stake in Merrill Lynch Phatra Securities and 30.27 per cent stake in Thai Farmers Asset Management Company to the bank. The 1.2 billion baht (S$49.5 million) merger with the troubled finance firm was announced on June 22. STAR BLOCK GROUP: To submit restructuring plan ---------------------------------------------- Star Block Group Public Company Limited will submit a restructuring plan to the Court. The Company has appointed The Far East Law Office (Thailand) Co., Ltd., Mr. Jiraphan Thammasawate and Vice Professsor Vichit Wangnai to be responsible for the restructuring plan and to temporarily carry out the plan together with the Company's management. 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. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *