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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      

      Wednesday, July 22, 1998, Vol. 1, No. 106

                    Headlines


C H I N A   &   H O N G   K O N G

ACEWOOD INVESTMENTS LIMITED: Winding-up notice
CHINA EVERBRIGHT: Show of strength by China Everbright
FOREVER LEAD LIMITED: Winding-up petition
FOREGROUND SECURITIES COMPANY LIMITED: Winding-up petition
GERBERA TRADING LIMITED: Winding-up notice

GRAND TRADE INDUSTRIAL LIMITED: Winding-up petition
GUANGDONG OVERSEAS: Misses loan payment
INTERFORM CERAMICS: Receive writs for repayment
J&A SECURITIES: Beijing orders J&A-Guotai merger
KMF INTERNATIONAL LIMITED: Winding-up notice

NATHAN ENGINEERING LIMITED: Winding-up petition
PAN-WIN REALTY AGENCY LIMITED: Winding-up notice
SHARON GAIN INVESTMENT: Members' and creditors' meetings
SIMPSON COMMUNICATION LIMITED: Winding-up petition
SUNTEX HOLDINGS LIMITED: Winding-up petition

WHARF CABLE: Wharf Cable cuts staff as slump bites
WORLDLANE LTD: Winding-up notice


K O R E A

CHONGGWANG COMPANY: Chairman accused of embezzlement
HANGIL MERCHANT BANK: Execs under criminal investigation
KYONGSONG CONSTRUCTION: Executives accused of bribing
SAEHAN MERCHANT BANKING: Execs under criminal investigation


M A L A Y S I A

ARAB-MALAYSIAN CORP: Debt downgraded on court protection
ASSOCIATED KAOLIN INDUSTRIES: Debt downgraded to single-D
LUCKY NATION SDN BHD: Winding-up petition
SOFAMEX MANUFACTURING SDN BHD: Winding-up petition


P H I L I P P I N E S

PETRON CORP: Reports lower profits
PHILIPPINE AIRLINES: Expects to post deeply lower profits


T H A I L A N D

AIG FINANCE: Results announcement
NAKORNTHON BANK: Results announcement
TOTAL ACCESS: Motorola to raise stake in TAC


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

ACEWOOD INVESTMENTS LIMITED: Winding-up notice
----------------------------------------------
A notice of a July 8, 1998 winding-up order appeared in the
Hong Kong Standard for Acewood Investments Limited. The
petition was presented on April 21, 1998 in the high court
of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 256 of 1998.


CHINA EVERBRIGHT: Show of strength by China Everbright
------------------------------------------------------
According to the SCMP of July 21, China Everbright Group, a
leading mainland-backed conglomerate, yesterday tried to
dispel market speculation about its financial strength by
disclosing for the first time that its Hong Kong operations
made net profit to the tune of several hundreds of millions
of Hong Kong dollars, although as an unlisted holding
company, it is not required to do so.

Market analysts have long speculated that the group lost
heavily on a string of acquisitions and stock investments
last year when the stock market soared to record levels
before crashing as the effects of the Asian crisis spread.

Company officials said the group last year set aside a huge
sum, twice last year's net profit, for write-offs and
write-downs related to diminished stock investments and
other assets, but contrary to market speculation, the group
did much better than expected in 1997. They said that net
profits in 1996 were only $97 million.


FOREVER LEAD LIMITED: Winding-up petition
-----------------------------------------
Notice is hereby given that a petition for the winding-up
of Forever Lead Limited by the High Court of Hong Kong was,
on July 14, 1998 presented to the said Court by Yu Yik
Sing. The petition is scheduled to be heard on August 12,
1998. Other creditors who support or oppose the making of
the order may appear at the time of the hearing.  


FOREGROUND SECURITIES COMPANY LIMITED: Winding-up petition
----------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Foreground Securities Company Limited by the High Court
of Hong Kong was, on July 16, 1998 presented to the said
Court by Li Ngai Yin. The petition is scheduled to be heard
on August 19, 1998. Other creditors who support or oppose
the making of the order may appear at the time of the
hearing.  


GERBERA TRADING LIMITED: Winding-up notice
------------------------------------------
A notice of a July 8, 1998 winding-up order appeared in the
Hong Kong Standard for Gerbera Trading 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. 358 of 1998.


GRAND TRADE INDUSTRIAL LIMITED: Winding-up petition
---------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Grand Trade Industrial Limited by the High Court of Hong
Kong was, on July 10, 1998 presented to the said Court by
Chen Mei Ling. The petition is scheduled to be heard on
August 12, 1998. Other creditors who support or oppose the
making of the order may appear at the time of the hearing.  


GUANGDONG OVERSEAS: Misses loan payment
---------------------------------------
Guangdong Overseas Chinese Trust & Investment Corp (Goctic)
missed a payment on a US$70 million loan that was due on
July 15. The payment was the final installment of a four-
year term loan signed in 1994 and arranged by SocGen Asia.

Goctic said the missed payment is a problem over access to
foreign exchange rather than operating problems in the
corporation's core businesses.

Goctic said they have made all their money in yuan and need
to convert to forex. They said the problem will be solved
in the next few days. SocGen said there is no plan to
declare the borrower in default.


INTERFORM CERAMICS: Receive writs for repayment
-----------------------------------------------
Interform Ceramics Technologies Limited and its
subsidiaries received two writs on July 16, 98 from two
creditors for repayment of debts.

The two creditors are Belgium Bank and Trileae
International Limited claiming for repayment of debts in
the amount of HK$20.8 million and US$1 million
respectively.

The group's creditors are still considering a standstill
agreement. In the meantime, the group is taking steps to
negotiate with its leading bank to reschedule the repayment
of debts.


J&A SECURITIES: Beijing orders J&A-Guotai merger
------------------------------------------------
According to the SCMP of July 21, scandal-hit J&A
Securities has been ordered by regulatory authorities to
merge with Shanghai-based China Guo-tai Securities, to
create a dominant force in PRC stockbroking.

Analysts said the move was an attempt to dilute the
influence of the People's Liberation Army over J&A
Securities, which has a PLA-controlled company as its
majoritiy shareholder and is the largest and most
profitable brokerage in the PRC.

The proposed merger would produce a giant brokerage with
assets of about 22.5 billion yuan.

Sources said the merger would be announced shortly.

Analysts said Guotai was chosen because of its steady
management. Last month, it was asked to take over the
securities operations of China Venturetech Investment Corp,
a debt-ridden but well-connected trust and investment firm.

J&A is innovative, has a dynamic staff, but is weak on
management, but Guotai's management is known to be steady.

J&A sources welcomed the proposed merger.

J&A reported net profit of 711 million yuan and assets of
17.5 billion yuan lastg year. Set up in 1992, it quickly
developed a pugnacious reputation and was the country's
first underwriter of a convertible bond issue and was top
share underwriter and sponsor in the first seven months of
the year.

Guo-tai, in contrast, is renowned for its steady management
and underwriting approach. With assets of 5.12 billion
yuan, it has never the number one slot for A-share
underwriting or net profits, but always manages to secure a
place in the rankings reserved for the top 10 brokerages.


KMF INTERNATIONAL LIMITED: Winding-up notice
--------------------------------------------
A notice of a June 29, 1998 winding-up order appeared in
the Hong Kong Standard for KMF International Limited. The
petition was presented on April 21, 1998 in the high court
of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 288 of 1998.


NATHAN ENGINEERING LIMITED: Winding-up petition
-----------------------------------------------
Notice is hereby given that a petition for the winding-up
of Nathan Engineering Limited by the High Court of Hong
Kong was, on July 10, 1998 presented to the said Court by
Ng Kwok Wah. The petition is scheduled to be heard on
August 12, 1998. Other creditors who support or oppose the
making of the order may appear at the time of the hearing.


PAN-WIN REALTY AGENCY LIMITED: Winding-up notice
------------------------------------------------
A notice of a July 8, 1998 winding-up order appeared in the
Hong Kong Standard for Pan-win Realty Agency Limited. The
petition was presented on April 9, 1998 in the high court
of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 235 of 1998.


SHARON GAIN INVESTMENT: Members' and creditors' meetings
--------------------------------------------------------
A notice of members' and creditors' meetings appeared in
the Hong Kong Standard for Sharon Gain Investment Limited
(in creditors' voluntary liquidation). The meetings will be
held on July 25, 1998 at 2302-3 Chinachem Hollywood Center,
1 Hollywood Road, Central, Hong Kong.


SIMPSON COMMUNICATION LIMITED: Winding-up petition
--------------------------------------------------
A notice is hereby given that a petition for the winding-up
of Simpson Communication Limited by the High Court of Hong
Kong was, on June 16, 1998 presented to the said Court by
Ng Kam Hung. The petition is scheduled to be heard on
August 5, 1998. Other creditors who support or oppose the
making of the order may appear at the time of the hearing.  


SUNTEX HOLDINGS LIMITED: Winding-up petition
--------------------------------------------
Notice is hereby given that a petition for the winding-up
of Suntex Holdings Limited by the High Court of Hong Kong
was, on July 6, 1998 presented to the said Court by Chow
Shui Ching Lora. The petition is scheduled to be heard on
August 5, 1998. Other creditors who support or oppose the
making of the order may appear at the time of the hearing.  


WHARF CABLE: Wharf Cable cuts staff as slump bites
--------------------------------------------------
According to the SCMP of July 21, Wharf Cable said
yesterday that several dozen staff were made redundant last
week.

The company said no further lay-offs were planned.

The cable company's parent Wharf (Holdings) has retained
Bank of America Asia to help arrange a $1.5 billion to $2
billion three to five-year syndicated loan for its Gateway
II project in Tsimshatsui.

Debt market's newsletter "Basis Point" reported that the
loan is being priced at about 225 basis points above the
benchmark three-month interbank rate inclusive of fees.


WORLDLANE LTD: Winding-up notice
--------------------------------
A notice of a August 1, 1998 winding-up order appeared in
the Hong Kong Standard for Worldlane Limited. The petition
was presented on April 21, 1998 in the high court of the
Hong Kong Administrative Region Court of First Instance,
Companies Winding-up Proceedings N0. 73 of 1998.


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

CHONGGWANG COMPANY: Chairman accused of embezzlement
----------------------------------------------------
The Korea Herald reported that Mr. Shin Soo-chol, chairman
of the Chonggwang Company was arrested for embezzling 55
billion won that his company received as a loan from the
Korea Real Estate Trust Company. The Korea Herald reports
that although the Chonggwang Company is without the
financial capability to build apartments, it received a
loan from the Korea Real Estate Trust Company to do so.  

Prosecutors have arrested 17 persons, including executives
at the Korea Real Estate Trust Company, on charges related
to illegal loan activities.


HANGIL MERCHANT BANK: Execs under criminal investigation
--------------------------------------------------------
The Financial Supervisory Commission (FSC) is reportedly
studying ways to freeze the assets of the top managers of
the Taejon based Hangil Merchant Bank, and to prohibit
their travel out of the country. According to a report in
the Korea Times, the FSC is now investigating these
executives for possible violation of civil and criminal
laws.  

The bank is already under investigation for engaging in
illegal credit extension practices, and is expected to be
liquidated as it can not meet a 6 percent capital adequacy
ratio calculated using standards set by the Bank for
International Settlements (BIS).

The Hangil Merchant Bank's operations were suspended in
mid-June following a run on customers' deposits. The
suspension was to be in effect until July 31, and was
prompted when the bank could not pay back customer deposits
worth 111 billion won over the first two weeks of June.

The Hangil Merchant Bank, which has 1.47 trillion won in
assets and 1.35 trillion won in liabilities, was founded in
1979 and purchased by the Nasan textile group in 1996. A 40
percent stake was later sold to the Songwon Construction
Firm in 1997.


KYONGSONG CONSTRUCTION: Executives accused of bribing
-----------------------------------------------------
The Korea Herald reported that executives of the Kyongsong
Construction Company improperly diverted a loan worth over
280 billion won to pay back its debts. The loan from the
Korea Real Estate Trust Company was to be used to construct
apartments in Koyang, Yongin, and Pusan. Executives of
Kyongsong reportedly gave bribes of 1 billion won in cash
to officials at Korea Real Estate Trust Company to obtain
this loan.  

Prosecutors have arrested 17 persons, including executives
at the Korea Real Estate Trust Company, on charges related
to illegal loan activities.


SAEHAN MERCHANT BANKING: Execs under criminal investigation
-----------------------------------------------------------
The Financial Supervisory Commission (FSC) is reportedly
studying ways to freeze the assets of the top managers of
the Saehan Merchant Bank, and to prohibit their travel out
of the country.

According to a report in the Korea Times, the FSC is now
investigating these executives for possible violation of
civil and criminal laws.  

The bank's operations have already been suspended, and it
is already under investigation for engaging in illegal
credit extension practices. Furthermore, it is expected to
be liquidated as it can not meet a 6 percent capital
adequacy ratio calculated using standards set by the Bank
for International Settlements (BIS).


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

ARAB-MALAYSIAN CORP: Debt downgraded on court protection
--------------------------------------------------------
Rating Agent Malaysia Bhd. said it has downgraded its
ratings on the private debt securities of Arab Malaysian
Corp Bhd. to high risk from their previous rating of P3.

The rating, now nonprime, indicates that the company's debt
has a high investment risk and a doubtful capacity for a
timely repayment on short-term obligations.

The rating agent said Amcorp's move to seek court
protection from creditors while it works out a
restructuring plan was the cause for the downgrade.

Following the court order, Amcorp is given until the end of
October or about three and a half months, to finalise the
restructuring scheme and settle the full amount of its
debts.

Amcorp is negotiating the sale of a 43% stake in AMMB
Holdings Bhd. with a foreign party.


ASSOCIATED KAOLIN INDUSTRIES: Debt downgraded to single-D
---------------------------------------------------------
Rating Agency Malaysia Bhd. downgraded its rating on
Associated Kaolin Industries Bhd.'s (AKI) bank-guaranteed
bonds to single-D from single-A-1, after the group secured
protection from its creditors for six months.

The action affects 40 million ringgit or bond, the rating
agency said. AKI announced on Friday it defaulted on
various bankers' acceptance and bills ringgit due to
insufficient internal funds, which in turn resulted from
poor debt collections from its trade debtors.

AKI's financial situation was further weakened when Caton
Wood Industries Sdn. Bhd., its subsidiary, was placed under
receivership in April.


LUCKY NATION SDN BHD: Winding-up petition
-----------------------------------------
EON Bank Bhd on 13/4/98 petitioned for the winding-up of
Lucky Nation Sdn Bhd. The petition is directed to be heard
on 28/8/98.


SOFAMEX MANUFACTURING SDN BHD: Winding-up petition
--------------------------------------------------
EON Bank Bhd on 13/4/98 petitioned for the winding-up of
Sofamex Manufacturing Sdn Bhd. The petition is directed to
be heard on 28/8/98.


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

PETRON CORP: Reports lower profits
----------------------------------
RP-Business News cites an Agence France-Presse report that
Petron Corp. said Friday its net profit rose only
marginally from a year earlier to 2.26 billion pesos (54.5
million dollars) in the six months to June due to the Asian
crisis.


PHILIPPINE AIRLINES: Expects to post deeply lower profits
---------------------------------------------------------
According to the SCMP of July 21, PAL yesterday said its
unaudited net loss nearly quadrupled from a year earlier to
391.6 million pesos in the first two months of its
financial year due to the Asian financial crisis.

Revenues rose 7.7 per cent, or 467.4 million pesos, in
April and May, but the gains were completely wiped out by
foreign-exchange transaction losses and much higher
financing charges as a result of the devaluation of the
peso. Foreign exchange losses more than quadrupled to 29.6
million pesos, while financing charges more than tripled to
861.4 million pesos.

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

AIG FINANCE: Results announcement
---------------------------------
AIG Finance (Thailand) Public Company reported its
unreviewed quarterly financial statements to the Stock
Exchange of Thailand. The company showed a net loss in the
second quarter of 504 million baht as compared to a profit
of 25 million baht for the same period last year.


NAKORNTHON BANK: Results announcement
-------------------------------------
Nakornthon Bank Public Company Limited unaudited half year
financial statements to the Stock Exchange of Thailand. For
half year ending June 30, the company reported a net loss
of 3.07 billion baht, compared to a profit of 327 million
baht for the same period last year.


TOTAL ACCESS: Motorola to raise stake in TAC
--------------------------------------------
The Nation reports July 21 that Total Access Communication
Plc (TAC) has signed a letter of intent with Motorola Inc.,
allowing the US equipment maker to further explore  
opportunities to buy into the Thai cellular firm, the
company source said.

The move is part of the company's efforts to increase the
market's confidence in its debt restructuring plan. TAC's
creditors have called for the company to increase its
registered capital and for a new strategic partner to be
rapidly found.

UBS and Exim Bank have put off the signing of their new
loan payment plans with TAC for about two months.

The cellular operator's debts have grown to US$1 billion.


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

Troubled Company Reporter -- Asia Pacific is a daily
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