TCRAP_Public/980731.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 31, 1998, Vol. 1, No. 112

                    Headlines


C H I N A   &   H O N G   K O N G

AGRICULTURE BANK OF CHINA: Placed on CreditWatch
BANK OF CHINA: Placed on CreditWatch
BANK OF COMMUNICATIONS: Placed on CreditWatch
CHINA CONSTRUCTION BANK: Placed on CreditWatch
CHINA INVESTMENT BANK: Placed on CreditWatch

CHINA MERCHANTS BANK: Placed on CreditWatch
CITIC INDUSTRIAL BANK: Placed on CreditWatch
GKC HOLDINGS: Citic close to GKC takeover
GENTS KNITTING GARMENT FACTORY LIMITED: Winding-up petition
GUANGDONG DEVELOPMENT BANK: Placed on CreditWatch

IDEAL PACIFIC: Ex-director on $1m bail as Ip flees to US
INDUSTRIAL & COMMERCIAL BANK: Placed on CreditWatch
INTERFORM CERAMICS: In rent suit for $1.9m
NEWCEPT TEXTILES LIMITED: Winding-up petition
UDL HOLDINGS: UDL sued over debt of $17.5m


J A P A N  

KIRIN BREWERY: To reduce workforce by half
RYOSHIN LEASING: GE Capital to acquire stake


K O R E A

GRAND SONG TRADING: Liquidated by creditors
HANBO IRON & STEEL: Creditors set bidding date
HYUNDAI MOTOR: Shuts down plants in midst of violence
SAMYANG TELECOM CO.: Liquidated by creditors
SHINWON COMPANY: Suspends its stock trading


M A L A Y S I A

ARAB-MALAYSIAN MERCHANT BANK: Downgrading of bonds
ARCHAEOLOGY (MALACCA) SDN BHD: Winding-up petition
GOLDEN RANK SDN BHD: Voluntary winding-up
KFC HOLDINGS BHD (KFC): Under Rating Watch
KUASATEK (M) SDN BHD: Winding-up petition

S Y WONG (SABAH) FARM SDN BHD: Voluntary winding-up
TIONG NAM TRADING & TRANSPORT: Winding-up petition
TOP-TOUCH (M) SDN BHD: Winding-up petition


P H I L I P P I N E S

PHILIPPINE AIRLINES: Philippine Airlines president quits


S I N G A P O R E

TOTAL ACCESS COMMUNICATION: Can delay loan repayment


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

AGRICULTURE BANK OF CHINA: Placed on CreditWatch
------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


BANK OF CHINA: Placed on CreditWatch
------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


BANK OF COMMUNICATIONS: Placed on CreditWatch
---------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


CHINA CONSTRUCTION BANK: Placed on CreditWatch
----------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


CHINA INVESTMENT BANK: Placed on CreditWatch
--------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


CHINA MERCHANTS BANK: Placed on CreditWatch
-------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


CITIC INDUSTRIAL BANK: Placed on CreditWatch
--------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


GKC HOLDINGS: Citic close to GKC takeover
-----------------------------------------
The SCMP said that according to sources, GKC Holdings is
close to reaching an agreement in which mainland-based
Citic Beijing, which owns 28.8 per cent of GKC, would usurp
the Tang family as the company's controlling shareholder.

The proceeds would be used to help GKC repay loans of more
than $200 million.

GKC is 72 per cent owned by a company that is in turn 60
per cent owned by the Tang family and 40 per cent by Citic
Beijing's wholly owned subsidiary, Shortridge.


GENTS KNITTING GARMENT FACTORY LIMITED: Winding-up petition
-----------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Gents Knitting Garment Factory Limited by the High Court
of Hong Kong was, on the 15th day of July, 1988, presented
to the said Court by Ngai Yuk Yung. The petition is
scheduled to be heard on 19th of August, 1998. Creditors
who support or oppose the making of the order may appear at
the time of the hearing.


GUANGDONG DEVELOPMENT BANK: Placed on CreditWatch
-------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


IDEAL PACIFIC: Ex-director on $1m bail as Ip flees to US
--------------------------------------------------------
According to the SCMP, police sources believe the man at
the centre of a $443 million alleged fraud against freight
forwarder Ideal Pacific may have fled to the United States
after last being seen in Macau, but his whereabouts remain
a mystery.

Ideal Pacific's directors said they were in discussions
with their lawyers over how to remove Mr Ip from the board
after suspending his directorship on July 13.

Ideal Pacific is controlled by Central China Enterprises
Ltd (CCEL), formerly known as Indesen Industries, which is
17 per cent owned by Henan Hongkong Enterprises --- the
Henan provincial government's window company in Hong Kong.

Henan Hongkong chairman yesterday said the issue would be
left for China Enterprises to handle and declined to
comment further.

Henan vice-governor Zhang Yixiang said the provincial
government continued to support the Hong Kong-listed window
company.

CCEL executive director David Ng Chun-chuen said the firm
had asked accounting firm Moores Rowland to conduct due
diligence on Ideal Pacific. Ideal Pacific's auditor since
listing in 1994, Coopers & Lybrand, had also been asked to
provide a special review of the January acquisition.

Mr Ng said provisions have been made for all the suspected
problems at Ideal Pacific and the situation is now under
control. He also said the company will be able to break
even this year. He said CCEL would not give up Ideal
Pacific at this point because there's value in its air and
sea freight-forwarding business. Mr Ng said China
Enterprises had enough capital, with cash of more than $200
million, to provide financial support to Ideal Pacific.

In the wake of the irregularities, Ideal Pacific made a
$310 million provision in the year to March 31.

According to the Hong Kong Standard, Mr Ng said that the
disappearance of Ip has provided a convenient opportunity
to replace the old management structure. He added that the
company has appointed six directors to sit on Ideal
Pacific's board.


INDUSTRIAL & COMMERCIAL BANK: Placed on CreditWatch
---------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has placed the ratings of nine Chinese
banks on review for possible downgrade. The action was
reportedly prompted by the continued deterioration of the
financial fundamentals in the Chinese banking system, and
the widening credit risk disparity among Chinese banks
resulting from weakening regulatory support to regional
financial institutions. The slowdown of the economy and
challenges to state sector reforms were also noted.


INTERFORM CERAMICS: In rent suit for $1.9m
------------------------------------------
According to the SCMP, nearly $2 million is owed by tile-
maker Interform Ceramics Technologies as guarantor on a
leasing agreement. Interform Joint Ventures, formerly known
as Interform (HK) is being sued by Showa Leasing (Hong
Kong) for $1.96 million owed since February 28 for rent on
3 sets of new Title Presses called ALPHA 1500, together
with accessories, installed in Shenzhen with monthly rent
charged at HK$161,548.

Showa is seeking interest at the rate of 19 per cent per
annum and costs.

Interform Ceramics Technologies is being sued by the
Belgian Bank for debts of HK$5 million and US$2 million.

In March, it was reported that the company had debts of
HK$782 million and was in talks with creditors to freeze
repayments.


NEWCEPT TEXTILES LIMITED: Winding-up petition
---------------------------------------------
Notice is hereby given that a petition for the winding-up
of Newcept Textiles Limited by the High Court of Hong Kong
was, on the 15th day of July, 1988, presented to the said
Court by Li Sau Mai. The petition is heard on 19th of
August, 1998. Creditors who support or oppose the making of
the order may appear at the time of the hearing.


UDL HOLDINGS: UDL sued over debt of $17.5m
------------------------------------------
According to the SCMP, marine works manufacturer UDL
Holdings is being sued by a leasing company, Showa Leasing
(Hong Kong) over an alleged $17.5 million debt under 4 loan
agreements entered into between September 1994 and December
1996 by Showa and Universal Dockyards, of which UDL is a
holding company.

Under an agreement with Showa Leasing, UDL is deemed liable
for all money and liabilities owed to the company by
Universal Dockyards.

Interest and costs are also being sought.

UDL was barred from tendering for further Works Bureau
contracts in March this year, allegedly because of poor
performance on government work.

It was also reported to be facing cash-flow problems after
a building slowdown.


=========
J A P A N  
=========

KIRIN BREWERY: To reduce workforce by half
------------------------------------------
Bloomberg reports July 30 Kirin Brewery Co. is planning to
reduce its factory workers by 50 percent to 1,800 by 2005,
to concentrate beer production at larger facilities, and
close some plants, Nikkei English News reported.


RYOSHIN LEASING: GE Capital to acquire stake
--------------------------------------------
The Nihon Keizai reports July 30 General Electric Capital
Services Inc. has forged a deal to acquire a roughly 80%
stake in Ryoshin Leasing Corp.

Combined with GE Capital's recently announced acquisition
of Lake Co., and its tie-up with Toho Mutual Life Insurance
Co., the deal would give the U.S. financing concern
beachheads in leasing, consumer finance and insurance as
Japan's Big Bang financial deregulation moves ahead.

According to sources close to the situation, GE Capital has
reached a basic agreement with Ryoshin Leasing's two
principal shareholders, Mitsubishi Corp. (8058) and
Mitsubishi Trust & Banking Corp. (8402) to take on shares
in the leasing concern.

Under the arrangement, Ryoshin Leasing would convert in the
fall into a joint venture between GE Capital, and the
Japanese trading house and trust bank. Mitsubishi currently
owns a 51.8% stake in Ryoshin Leasing, with Mitsubishi
Trust & Banking holding a 34.5% share. Ryoshin Leasing's
stated capital is 4.9 billion yen.


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

GRAND SONG TRADING: Liquidated by creditors
-------------------------------------------
The Grand Song Trading Company announced in the Korean
language Maeil Kyungje that its creditors decided to
liquidate the company at a meeting on July 20, 1998. The
company's creditors have until September 20 to file their
claim. The company's address is 242-1 Chongno 6-ga,
Chongno-gu, Seoul and the president is Mr. Song Chong-do.


HANBO IRON & STEEL: Creditors set bidding date
----------------------------------------------
The creditors of Hanbo Iron & Steel Company have indicated
that they will hold a preliminary bid to select candidate
buyers for the company on September 15. The final bidding
is scheduled for late October, and BTC Co. of the US has
been commissioned to organize the sale of Hanbo.  

Hanbo, once the second largest steelmaker in Korea, at one
point produced 3 million tons of steel products per year,
but the company collapsed in January 1997 on bank debts
estimated at $6 billion. The value of the assets at Hanbo
have been evaluated at 3.4 trillion won, although the
construction of some facilities is still not complete.  
Creditors have made it clear that they will set the minimum
required priced at 2 trillion won.  

According to the Korea Herald, creditors ideally want to
sell off the Hanbo steel making plants as a single package.  
However, they are willing to consider selling parts of
Hanbo's production facilities to separate buyers in the
event there is no single bid to buy the entire company.


HYUNDAI MOTOR: Shuts down plants in midst of violence
-----------------------------------------------------
According to the Hong Kong Standard, Hyundai Motor Co. said
it will stop making cars until August 9 after clashes with
labor unions over layoffs turned violent.

Korean parts suppliers, which together supply 15.4 trillion
won of parts a year, are losing a combined 61.2 billion won
a day because of the Hyundai shutdown.


SAMYANG TELECOM CO.: Liquidated by creditors
--------------------------------------------
The Samyang Telecom Company announced in the Korean
language Maeil Kyungje that its creditors decided to
liquidate the company at a meeting on July 28, 1998. The
company's address is 263 Yeonji-dong, Chongno-gu, Seoul and
the president is Mr. Yoo Jin-kuk.


SHINWON COMPANY: Suspends its stock trading
-------------------------------------------
The Shinwon Company and its creditor bank Kookmin Bank
advertised in the Korean language Maeil Kyungje that the
company's stock trading is suspended until August 17, 1998.


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

ARAB-MALAYSIAN MERCHANT BANK: Downgrading of bonds
--------------------------------------------------
Rating Agency Malaysia Bhd (RAM) downgraded redeemable
unsecured bonds of Arab-Malaysian Merchant Bank (AMMB)
(listed in the KLSE) of RM435.06mil from A2 to BBB2.

The downgrade reflects the higher risk profile of the AMMB
Holdings group as a result of the sharp and sudden reversal
in the Malaysian economic scenario.

The rating has also been placed on Rating Watch with a
developing outlook in view of the group's planned
restructuring.

AMMB Holdings' ability to meet its debt obligation could
come under pressure due to weakened financial position of
its subsidiaries.


ARCHAEOLOGY (MALACCA) SDN BHD: Winding-up petition
--------------------------------------------------
Beausign Realty Sdn Bhd on 13/5/98 petitioned for the
winding-up of Archaeology (Malacca) Sdn Bhd. The petition
is directed to be heard on 25/9/98.


GOLDEN RANK SDN BHD: Voluntary winding-up
-----------------------------------------
The members of Golden Rank Sdn Bhd on 21/7/98 resolved to
wind-up the company voluntarily. Creditors are requested to
submit their claims before 30/8/98.


KFC HOLDINGS BHD (KFC): Under Rating Watch
------------------------------------------
Rating Agency Malaysia Bhd (RAM) placed the Islamic Debt
Securities of KFC Holdings Bhd (listed in the KLSE) of
M150mil under Rating Watch with a negative outlook.

RAM was concerned over recent events resulting from KFC's
corporate deals. The unresolved sale of Wisma Idris raises
strong concerns on the level of corporate governance in the
company.

The Islamic debt securities have been rated a stand alone
AA2.


KUASATEK (M) SDN BHD: Winding-up petition
-----------------------------------------
Leader Cable Industry Bhd on 25/6/98 petitioned for the
winding-up of Kuasatek (M) Sdn Bhd. The petition is
directed to be heard on 20/8/98.


S Y WONG (SABAH) FARM SDN BHD: Voluntary winding-up
---------------------------------------------------
The members of S Y Wong (Sabah) Farm Sdn Bhd on 21/7/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
30/9/98.


TIONG NAM TRADING & TRANSPORT: Winding-up petition
--------------------------------------------------
Astec (M) Sdn Bhd on 18/6/98 petitioned for the winding-up
of Tiong Nam Trading & Transport (M) Sdn Bhd. The petition
is directed to be heard on 26/9/98.


TOP-TOUCH (M) SDN BHD: Winding-up petition
------------------------------------------
Credit Corporation (Malaysia) Bhd on 30/6/98 petitioned for
the winding-up of Top-Touch (M) Sdn Bhd. The petition is
directed to be heard on 25/9/98.


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

PHILIPPINE AIRLINES: Philippine Airlines president quits
--------------------------------------------------------
According to the Hong Kong Standard, the president of PAL
has resigned in the middle of the recent labor dispute that
threatened to shut down the company. A senior airline
official said that there's no immediate need for
replacement as the company will soon be placed under
receivership.


=================
S I N G A P O R E
=================

TOTAL ACCESS COMMUNICATION: Can delay loan repayment
----------------------------------------------------
The Asian Wall Street Journal reports that Total Access
Communication PCL has obtained permission from creditors to
postpone repayment of $538 million foreign-currency loan
principals. Total Access plans to sign an agreement with 50
creditors on Friday.

The Asian Wall Street Journal also reports that the company
will be relieved of repaying $250 million in short-term
debt this year, and the maturities of these loans will be
extended, turning them into long-term loans. Maturities of
$288 million of long-term loans will also be extended so
that they will be repaid in full by 2004, rather than the
originally scheduled 2002.  

Total Access is listed on the Singapore Stock Exchange, and
its parent company, United Communications Industries PCL is
listed on the Thai Stock Exchange. Total Access has about
$1 billion on foreign currency debts, although prior to the
July 1997 float of the Thai baht, it was one of the
most profitable telecommunication companies in Thailand.  

In July, 1997, the Thai government floated the baht causing
it to lose more than 37 percent against the US dollar. The
float increased the foreign debt obligations at a time when
Total Access is facing declining sales amid Thailand's
worse economic crisis in decades.


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.

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