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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
Monday, August 3, 1998, Vol. 1, No. 113
Headlines
C H I N A & H O N G K O N G
GKC HOLDINGS: GKC subsidiaries face $24.5m writs
LUEN YICK WATER & DRAINAGE WORKS: Winding-up petition
RUSSENE COMPANY LIMITED: Winding-up notice
S. MEGGA INTERNATIONAL: Pins hope on new funds, debt deal
UNIQUE BRILLIANT ENGINEERING LIMITED: Winding-up notice
VIDEO-TRONIC INDUSTRIAL COMPANY LIMITED: Winding-up notice
WELLSEASON (FAR EAST) LIMITED: Winding-up petition
I N D O N E S I A
BANK ASPAC: Six banks plan survival merger
BANK INDOTRADE: Six banks plan survival merger
BANK LAUTAN BERLIAN: Six banks plan survival merger
BANK PATRIOT: Six banks plan survival merger
BANK TATA: Six banks plan survival merger
BANK UPPINDO: Six banks plan survival merger
PERTAMINA: Oil company closes international offices
J A P A N
MITSUBISHI TRUST & BANKING: S&P lowers debt ratings
K O R E A
DONGKWANG-HWASUNG CO.: Hyosung affiliate liquidates
HAITAI CONFECTIONARY: Haitai Group to sell off unit
ILSUNG CONSTRUCTION: Credit suspended under workout
KIA MOTORS: Kia's foreign bidders down to GM, Ford
SHINDONG-A GROUP: President charged with concealing assets
TONG-IL HEAVY INDUSTRY: Credit suspended under workout
M A L A Y S I A
MILAS MANUFACTURING SDN BHD: Winding-up petition
MULTI-BIT TECHNOLOGY SDN BHD: Voluntary winding-up
PASDEC HOLDINGS BHD: Default by subsidiary
PEMBINAAN YCS BHD(YCS): Reports loan default
PROMET BHD: Gets court protection from creditors
PUNCAK VISTA SDN BHD: UEM associate defaults
P H I L I P P I N E S
SAN MIGUEL: Former PAL president may come on board
T H A I L A N D
MANAGER MEDIA GROUP: Results announcement
PEREGRINE FINANCE: Lehman buys Peregrine's Thai unit
ROYAL GARDEN RESORTS: Results announcement
SAHAVIRIYA STEEL: Results announcement
THAI DAIMARU: Share purchase by Pacific Assets and Seri
TOTAL ACCESS COMMUNICATION: Reaches agreement with 50 banks
=================================
C H I N A & H O N G K O N G
=================================
GKC HOLDINGS: GKC subsidiaries face $24.5m writs
------------------------------------------------
According to the SCMP, troubled GKC Holdings was dealt a
further blow yesterday with two separate claims for
repayment of $24.5 million from subsidiary companies ---
German Kitchen (HK) and German Kitchen (China).
Two members of the Tang family, which controls GKC, an
associate of Citic Beijing, along with German Kitchen (HK)
allegedly owe Ben Wong Yu-chiu $19 million in outstanding
loans.
A declaration is being sought that Mr Wong is the legal and
beneficial owner of German Kitchen (China)'s $22 million
shareholder advances.
$5.5 million is being sought by Toptech Co from German
Kitchen (China) for goods sold and delivered, and work
done.
LUEN YICK WATER & DRAINAGE WORKS: Winding-up petition
-----------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Luen Yick Water & Drainage Works Limited by the High
Court of Hong Kong was, on the 24th day of July, 1988,
presented to the said Court by Choi Charn Ming. The
petition is scheduled to be heard on 26th of August, 1998.
Creditor who support or oppose the making of the order may
appear at the time of the hearing.
RUSSENE COMPANY LIMITED: Winding-up notice
------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Russene Co Limited. The petition
was presented in the high court of the Hong Kong
Administrative Region Court of First Instance, Companies
Winding-up Proceedings N0. 432 of 1998.
S. MEGGA INTERNATIONAL: Pins hope on new funds, debt deal
---------------------------------------------------------
According to the SCMP, S. Megga International Holdings will
seek a resumption of trading in its shares on or before
August 31. The firm said the meeting of its noteholders
would be delayed until September to give the company more
time to prepare a proposal.
According to the Hong Kong Standard, the telecoms product
manufacturer yesterday said it hopes to arrive at an
agreement with potential investors by end of August in a
move to restructure its operation.
Even if no agreement is wrapped up in this regard, it
intends to wrap up an agreement on debt and capital
restructuring with major lenders.
The company said last month it was negotiating with three
parties who might invest in the company. It is the second
attempt by the company to attract new investors after
locally listed telecommunications products manufacturer CCT
Telecom terminated discussions on a new share subscription.
UNIQUE BRILLIANT ENGINEERING LIMITED: Winding-up notice
-------------------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Unique Brilliant Engineering
Limited. The petition was presented in the high court of
the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 437 of 1998.
VIDEO-TRONIC INDUSTRIAL COMPANY LIMITED: Winding-up notice
----------------------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Video-Tronic Co Limited. The
petition was presented in the high court of the Hong Kong
Administrative Region Court of First Instance, Companies
Winding-up Proceedings N0. 428 of 1998.
WELLSEASON (FAR EAST) LIMITED: Winding-up petition
--------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Wellseason (Far East) Limited by the High Court of Hong
Kong was, on the 15th day of July, 1988, presented to the
said Court by Lee Hon Wah. 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.
=================
I N D O N E S I A
=================
BANK ASPAC: Six banks plan survival merger
------------------------------------------
According to the SCMP, six Indonesia banks, which have been
under government supervision because of the need for cash
injection for survival, plan to merge by the end of 1999 to
create an entity with 7.9 trillion rupiah in assets. They
hope to create a new bank with US$603 billion of equity and
are now doing preparatory work which will be finished by
October.
The six banks are Bank Aspac, Bank Tata, Bank Indotrade,
Bank Patriot, Bank Lautan Berlian and Bank Uppindo.
The Hong Kong Standard reports on the same merger saying
that equity and assets at banks are being wiped out by bad
loans that some analysts estimate will rise as high as 75
per cent of all loans this year. Analysts say it's hard to
see where the money will come from to make these smaller
banks, merger or no merger, viable. It's not clear what
role, if any, Bank Indonesia will play in the merger and
whether it will require the loans it extended to the banks
to be paid back.
BANK INDOTRADE: Six banks plan survival merger
----------------------------------------------
According to the SCMP, six Indonesia banks, which have been
under government supervision because of the need for cash
injection for survival, plan to merge by the end of 1999 to
create an entity with 7.9 trillion rupiah in assets. They
hope to create a new bank with US$603 billion of equity and
are now doing preparatory work which will be finished by
October.
The six banks are Bank Aspac, Bank Tata, Bank Indotrade,
Bank Patriot, Bank Lautan Berlian and Bank Uppindo.
The Hong Kong Standard reports on the same merger saying
that equity and assets at banks are being wiped out by bad
loans that some analysts estimate will rise as high as 75
per cent of all loans this year. Analysts say it's hard to
see where the money will come from to make these smaller
banks, merger or no merger, viable. It's not clear what
role, if any, Bank Indonesia will play in the merger and
whether it will require the loans it extended to the banks
to be paid back.
BANK LAUTAN BERLIAN: Six banks plan survival merger
---------------------------------------------------
According to the SCMP, six Indonesia banks, which have been
under government supervision because of the need for cash
injection for survival, plan to merge by the end of 1999 to
create an entity with 7.9 trillion rupiah in assets. They
hope to create a new bank with US$603 billion of equity and
are now doing preparatory work which will be finished by
October.
The six banks are Bank Aspac, Bank Tata, Bank Indotrade,
Bank Patriot, Bank Lautan Berlian and Bank Uppindo.
The Hong Kong Standard reports on the same merger saying
that equity and assets at banks are being wiped out by bad
loans that some analysts estimate will rise as high as 75
per cent of all loans this year. Analysts say it's hard to
see where the money will come from to make these smaller
banks, merger or no merger, viable. It's not clear what
role, if any, Bank Indonesia will play in the merger and
whether it will require the loans it extended to the banks
to be paid back.
BANK PATRIOT: Six banks plan survival merger
--------------------------------------------
According to the SCMP, six Indonesia banks, which have been
under government supervision because of the need for cash
injection for survival, plan to merge by the end of 1999 to
create an entity with 7.9 trillion rupiah in assets. They
hope to create a new bank with US$603 billion of equity and
are now doing preparatory work which will be finished by
October.
The six banks are Bank Aspac, Bank Tata, Bank Indotrade,
Bank Patriot, Bank Lautan Berlian and Bank Uppindo.
The Hong Kong Standard reports on the same merger saying
that equity and assets at banks are being wiped out by bad
loans that some analysts estimate will rise as high as 75
per cent of all loans this year. Analysts say it's hard to
see where the money will come from to make these smaller
banks, merger or no merger, viable. It's not clear what
role, if any, Bank Indonesia will play in the merger and
whether it will require the loans it extended to the banks
to be paid back.
BANK TATA: Six banks plan survival merger
-----------------------------------------
According to the SCMP, six Indonesia banks, which have been
under government supervision because of the need for cash
injection for survival, plan to merge by the end of 1999 to
create an entity with 7.9 trillion rupiah in assets. They
hope to create a new bank with US$603 billion of equity and
are now doing preparatory work which will be finished by
October.
The six banks are Bank Aspac, Bank Tata, Bank Indotrade,
Bank Patriot, Bank Lautan Berlian and Bank Uppindo.
The Hong Kong Standard reports on the same merger saying
that equity and assets at banks are being wiped out by bad
loans that some analysts estimate will rise as high as 75
per cent of all loans this year. Analysts say it's hard to
see where the money will come from to make these smaller
banks, merger or no merger, viable. It's not clear what
role, if any, Bank Indonesia will play in the merger and
whether it will require the loans it extended to the banks
to be paid back.
BANK UPPINDO: Six banks plan survival merger
--------------------------------------------
According to the SCMP, six Indonesia banks, which have been
under government supervision because of the need for cash
injection for survival, plan to merge by the end of 1999 to
create an entity with 7.9 trillion rupiah in assets. They
hope to create a new bank with US$603 billion of equity and
are now doing preparatory work which will be finished by
October.
The six banks are Bank Aspac, Bank Tata, Bank Indotrade,
Bank Patriot, Bank Lautan Berlian and Bank Uppindo.
The Hong Kong Standard reports on the same merger saying
that equity and assets at banks are being wiped out by bad
loans that some analysts estimate will rise as high as 75
per cent of all loans this year. Analysts say it's hard to
see where the money will come from to make these smaller
banks, merger or no merger, viable. It's not clear what
role, if any, Bank Indonesia will play in the merger and
whether it will require the loans it extended to the banks
to be paid back.
PERTAMINA: Oil company closes international offices
---------------------------------------------------
Asia Pulse reports July 31 that Indonesian state-owned oil
company Pertamina has closed down its offices in New York,
London and Singapore and cut 15 per cent of its operational
costs due to the liquidity crisis. By closing its overseas
offices, Pertamina could save $US7.5 million.
=========
J A P A N
=========
MITSUBISHI TRUST & BANKING: S&P lowers debt ratings
---------------------------------------------------
According to the Asian Wall Street Journal, Standard and
Poor's has reduced the long-term debt rating of Mitsubishi
Trust & Banking Corporation form single A to triple B.
Mitsubishi Trust's long term counterparty rating and long-
term certificates of deposit ratings were also cut from
single A minus to triple B. The bank's short-term
counterparty rating and short-term CD ratings were cut
from single A2 to single A3.
The rating agency said that the downgrade reflects the
expectation of further large loan losses, stemming from the
bank's heavy exposure to several weak sectors of the
Japanese economy. Another concern expressed is that
Mitsubishi Trust's large gains from interest rate swaps
over the past several years make the bank vulnerable to
interest rate volatility.
=========
K O R E A
=========
DONGKWANG-HWASUNG CO.: Hyosung affiliate liquidates
---------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, Dongkwang-Hwasung Co., an affiliate of
Hyosung T&C, has decided to liquidate the company as part
of the Hyosung group's restructuring program.
HAITAI CONFECTIONARY: Haitai Group to sell off unit
---------------------------------------------------
According to Asia Pulse of July 31, Haitai Group said
Friday it will turn over its confectionery operations to
the U.S. firm New Bridge, in a bid to reconstruct itself.
New Bridge will conduct an asset evaluation of Haitai
Confectionery Co. next month to finalize the deal.
Haitai agreed to give the U.S. firm rights to use the
company name and to produce its brands, while New Bridge
said in principle it would continue to employ current
Haitai staff.
Haitai Group's flagship company collapsed in November, when
the former went insolvent because its diversification
strategy fell through.
Haitai Confectionery, which posted 10.9 billion won
(US$8.79 million) in net profts with turnover of 650
billion won, holds solid distribution channels nationwide,
with five plants, 69 sales offices and 192 outlets.
ILSUNG CONSTRUCTION: Credit suspended under workout
---------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, Korea's Credit Finance Agencies Association
(Cha'ekwon Keumyung Kikuan Hyupeuihoe) has suspended the
Ilsung Construction Industry company's credit as the
company was selected as a target of the group's workout
program.
KIA MOTORS: Kia's foreign bidders down to GM, Ford
--------------------------------------------------
According to the SCMP, General Motors and Ford Motors are
the only foreign companies in the race to acquire ailing
Kia Motors and its truck building affiliate.
The above two, along with three Korean car-makers, have
submitted letters of intent to buy Kia. The bidding office
said anonymous bidders had submitted notice that they were
no longer interested in pursuing Kia.
The five bidders have to submit their tenders by August 21
to acquire at least 51 per cent stakes in the companies.
Creditors recently outlined the details of a debt-repayment
plan, slashing the group's burden by 6.57 trillion won, but
they would not write off principal debt.
Kia's assets have been estimated at 7.72 trillion won and
liabilities at 8.75 trillion won. Asia Motors has
liabilities of 3.73 trillion won and assets of 1.64
trillion won.
SHINDONG-A GROUP: President charged with concealing assets
----------------------------------------------------------
The Korean language Maeil Kyungje reports that Seoul
District Public prosecutors found Choi, Sun-young, the
president of Shindong-a Group to have concealed company
assets. Choi set up a ghost company named Steve Young Co.
and gained a $US180m loan from a Korean bank.
Then he sent part of the loan ($US160m) to an American bank
account under Steve Young Co., as a payment for imported
goods. This is the first time since the new administration
took office that a chaebol leader of a large family owned
conglomerate has been charged with concealing
assets.
TONG-IL HEAVY INDUSTRY: Credit suspended under workout
------------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, Korea's Credit Finance Agencies Association
(Cha'ekwon Keumyung Kikuan Hyupeuihoe) has suspended the
Tong-il Heavy Industry company's credit as the company was
selected as a target of the group's workout program.
===============
M A L A Y S I A
===============
MILAS MANUFACTURING SDN BHD: Winding-up petition
------------------------------------------------
EON Bank Bhd on 20/4/98 petitioned for the winding-up of
Milas Manufacturing Sdn Bhd. The petition is directed to be
heard on 1/9/98.
MULTI-BIT TECHNOLOGY SDN BHD: Voluntary winding-up
--------------------------------------------------
The members of Multi-Bit Technology Sdn Bhd on 22/7/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
1/9/98.
PASDEC HOLDINGS BHD: Default by subsidiary
------------------------------------------
Pasdec Holdings Bhd (listed in the KLSE) reported that its
51%owned subsidiary Astana Golf Resort Bhd's RM30mil loan
had been non-performing due to a 13 months default.
Total outstanding debt stands at RM34mil or 13% of Pasdec's
NTA.
The company has called for shareholders' advances, which
will later be converted to equities.
PEMBINAAN YCS BHD(YCS): Reports loan default
--------------------------------------------
The Asian Wall Street Journal reports that construction
company Pembinaan YCS Bhd. announced it has defaulted on
the payment of principle and interest on its credit
facilities obtained from financial institutions. The
company claims that it has borrowings from financial
institutions of 260 million ringgit ($63.1 million) at the
end of last year, including credit facilities of 200
million ringgit and 60 million ringgit in the form of
redeemable secured guaranteed bonds maturing on
Dec. 28, 2000.
The amount of the default was not specified, but the
default may cause all of its credit facilities to be deemed
"due and immediately payable".
Pembinaan also says that it is negotiating with all the
financial institutions to restructure credit facilities.
However, the suspension and withdrawal of credit facilities
by the financial institutions has also affected the
company's ability to secure more construction contracts,
and has also caused the deferment of good projects
which could generate cash flow.
PROMET BHD: Gets court protection from creditors
------------------------------------------------
Promet Bhd (listed in the KLSE) and three of its
subsidiaries have obtained a restraining order from the
high court under Section 176 of the Companies Act as
protection from creditors and to give the group six months
to restructure.
The three wholly-owned units are Promet Developments Sdn
Bhd (property developer), Promet Dikoyu Sdn Bhd (property
developer) and 51%-owned Promet Fabricators Sdn Bhd (steel
fabricator).
For the 16 months to 30/4/97, the group suffered
RM169.69mil in pre-tax losses.
PUNCAK VISTA SDN BHD: UEM associate defaults
--------------------------------------------
UEM a major diversified group in the KLSE announced that
30%-owned associate Puncak Vista Sdn Bhd had defaulted in
its payment of principal and interest of RM393mil for two
credit facilities that are secured against Puncak Vista's
land. UEM would stand to lose only RM5mil in its investment
in Puncak Vista.
STI BUFORI SDN BHD: Winding-up petition
---------------------------------------
Lim Thean Seng on 26/5/98 petitioned for the winding-up of
STI Bufori Sdn Bhd. The petition is directed to be heard on
14/8/98.
=====================
P H I L I P P I N E S
=====================
SAN MIGUEL: Former PAL president may come on board
--------------------------------------------------
The Wall Street Journal reports July 31 that departing
Philippine Airlines president Jose Antonio Garcia may head
San Miguel. He would join recently elected chairman Eduardo
Cojuangco Jr. at the helm of the nation's largest food and
beverage maker.
San Miguel suffered a 75% drop in earnings to 723.3 pesos
due to increasing finance charges and expanding losses
overseas.
===============
T H A I L A N D
===============
MANAGER MEDIA GROUP: Results announcement
-----------------------------------------
Manager Media Group reports a net loss of baht 147 million
for the period ending June 30, 1998.
PEREGRINE FINANCE: Lehman buys Peregrine's Thai unit
----------------------------------------------------
According to the SCMP and Hong Kong Standard, investment
bank Lehman Brothers Asia has bought Peregrine Investment
Holdings' Bangkok-based securities arm, Peregrine Finance
and Securities for an unknown amount through liquidators,
Price Waterhouse.
The SCMP says that Lehman Brothers Asia said the purchase
was in line with the United States investment bank's aim of
expanding its corporate finance franchise in Asia.
Lehman Brothers' 650 employees in Asia, mainly in Japan,
give it a smaller presence in Southeast Asia than other US
investment banks. However it has secured some of the few
corporate finance deals going this year.
The Hong Kong Standard says that the former Peregrine unit
will operate independently from Lehman Brothers Thailand,
which has been principally engaged in advisory services.
ROYAL GARDEN RESORTS: Results announcement
------------------------------------------
Royal Garden Resorts reports a net loss of baht 22 million
for the period ending June 30, 1998, compared to a net
profit of baht 71 million for the corresponding 1997
period.
SAHAVIRIYA STEEL: Results announcement
--------------------------------------
Sahaviriya Steel Industries PLC reports a net loss of baht
1.5 billion for the period ending June 30, 1998, compared
to a net profit of baht 1.4 billion for the corresponding
1997 period.
THAI DAIMARU: Share purchase by Pacific Assets and Seri
-------------------------------------------------------
Pacific Assets PCL would like to report that the Company
has joined with the major shareholders of Seri Center Co.,
Ltd. to purchase shares of Thai Daimaru Co., Ltd., which
operates Thai Daimaru Department Store at Seri Center,
Srinakarin Road. Presently, Thai Daimaru Co., Ltd. has a
total registered capital of Baht 50 mm. comprising of
50,000 common shares. Pacific Assets purchased 4,440 shares
or 8.8% at a total consideration of Baht 4,440.-
Thai Daimaru Co., Ltd. is in the process of increasing its
capital to Baht 51 mm. by August 15, 1998. Pacific Assets
will purchase the additional of 1,680 shares at Baht 1.-
per share from the existing shareholder. Pacific Assets
will then hold approximately 12% of the total capital.
TOTAL ACCESS COMMUNICATION: Reaches agreement with 50 banks
-----------------------------------------------------------
United Communication Industry PCL (UCOM) has informed the
SET that it has reached agreement with 50 major bank
creditors to extend the maturity of US$537.7 million of
outstanding bank debt for subsidiary Total Access
Communications.
The first complex commercial international loan extension
undertaken by a Thai corporation without government
intervention, the agreement includes a $200 million one-
year syndicated loan due in April 1998.
TAC initiated the negotiations to stabilise its capital
structure following the Baht's recent sharp depreciation.
The agreement involves multi-year extensions of maturity
for 11 separate credit facilities that had principal
repayments or maturing debt in 1998. The full amounts of
several export credit facilities, bilateral agreements and
the one-year syndicated loan have been extended into
amortising term loans with final maturity in November,
2004.
This is the first major successful loan extension by a Thai
company involving multiple international agencies and
banks. Agencies are the US EXIM Bank, Finnish Export
Credit, Finnish Guarantee Board and Export Credit &
Guarantee Board of UK. Bank creditors include 50
international banks from the United States, Canada, Japan,
France, Germany, Italy, United Kingdom, Australia,
Singapore, Holland, Luxembourg, Switzerland, Finland
and Taiwan.
TAC kept interest and principal current throughout the
negotiations. In the future, the structure of the loan
extensions will enable TAC to continue making full interest
and principal repayments.
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
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contained herein is obtained from sources believed to be
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The TCR -- Asia Pacific subscription rate is $875 per month
delivered via e-mail. Additional e-mail subscriptions for
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subscription or balance thereof are $25 each. For
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* * * End of Transmission * * *