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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
Thursday, August 6, 1998, Vol. 1, No. 116
Headlines
C H I N A & H O N G K O N G
AWT HOLDINGS: AWT in defaults on $47m
CARROLAND RESOURCES LIMITED: Winding-up notice
ELITE WORLD ENGINEERING LIMITED: Winding-up notice
FUJIAN ITIC: Japan panel downgrades investment flagships
GKC HOLDINGS: Tang trio face US$1.8m suit
GOODWAY EXPRESS TOURS LIMITED: Winding-up notice
GREAT TECH LIMITED: Winding-up notice
GUANGZHOU ITIC: Japan panel downgrades investment flagships
LAI SUN DEVELOPMENT: Nan Fung discloses Lai Sun stake
MOTEC (FAR EAST) LIMITED: Winding-up notice
PEOPLE'S BANK OF CHINA: Panel downgrades ITICs
SHANGHAI ITIC: Japan panel downgrades investment flagships
SHENZHEN ITIC: Japan downgrades investment flagships
TIANJIN ITIC: Japan downgrades investment flagships
J A P A N
ACOM COMPANY: Credit ratings cut
AIFUL CORPORATION: Credit ratings cut
EIWA COMPANY: Credit ratings cut
OKURA: Shares of ailing Okura suspended
PROMISE COMPANY: Credit ratings cut
K O R E A
DOOSAN GROUP: Reorganization nearly complete
HYOSUNG MACHINERY COMPANY: Starts creditor reconciliation
KIA MOTORS: Announces capital reduction
TONGSUNG CONSTRUCTION: Starts creditor reconciliation
WONJIN HOUSING COMPANY: Starts creditor reconciliation
YOUNGHWA NATU-LINE COMPANY: Company Liquidation
M A L A Y S I A
ARAB-MALAYSIAN CORP: Shares plunge 26pc on debt problems
J-MART SUPERSTORE SDN BHD: Winding-up petition
KERATUR SDN BHD: Voluntary winding-up
MAYORIS SDN BHD: Voluntary winding-up
QS HARNESS INDUSTRIES SDN BHD: Winding-up petition
TAIPING CONSOLIDATED BHD: Bonds downgraded
TIME FROZEN FOOD SDN BHD: Winding-up petition
VALENTINO GARMENT SDN BHD: Voluntary winding-up
S I N G A P O R E
CAM INTERNATIONAL: Subsidiary accepts settlement
T H A I L A N D
PHATRA SECURITIES: Share transfer to Merrill Lynch
SANSIRI PUBLIC COMPANY: To restructure Siam Sanwa debt
UNION ASIA FINANCE: Results announcement
=================================
C H I N A & H O N G K O N G
=================================
AWT HOLDINGS: AWT in defaults on $47m
-------------------------------------
According to the SCMP, freight forwarder AWT Holdings has
become the latest public company to disclose its cash-flow
problems, saying it is in default of interest payments on
almost $47 million related to two convertible notes and two
convertible bonds which are due to expire between May 21
next year and April 1, 2001. The amount of interest
payments was not revealed and the company did not reveal
whether noteholders had demanded the company redeem the
notes and bonds.
The conversion prices of the bonds and notes vary from 12
cents to 78 cents, reflecting a substantial premium over
the company's closing price yesterday of two cents.
AWT also has outstanding warrants worth $187.88 million
with a conversion price of $1.36 per AWT share.
On Monday, AWT was able to avoid redeeming a $15 million
convertible note maturing on July 27 after proposing to
issue existing noteholder Expert Way a similar note as a
replacement.
The proposed note, which matures in 2001, will have a
conversion price of 2.76 cents and carries an interest rate
of 2 per cent above the prime lending rate. Upon
conversion, Expert Way will hold 32.54 per cent of
AWT.
Expert Way is an investment-holding company incorporated in
the British Virgin Islands. Relatives of Expert Way's
ultimate owner also hold the two convertible notes and one
convertible bond.
CARROLAND RESOURCES LIMITED: Winding-up notice
----------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Carroland Resources Limited. The
petition was presented on June 18, 1998 in the high court
of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 15 of 1998.
ELITE WORLD ENGINEERING LIMITED: Winding-up notice
--------------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Elite World Engineering Limited.
The petition was presented on June 29, 1998 in the high
court of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 444 of 1998.
FUJIAN ITIC: Japan panel downgrades investment flagships
--------------------------------------------------------
The Japan Rating & Investment Information Inc has
downgraded the foreign credit rating of five mainland -
based International Trust & Investment Corps (Itics) in a
bid to reflect the expected change in their future
operating environment arising from the country's on-going
financial reforms. The Itics are People's Bank of China,
Shanghai Itic, Fujian Itic, Shenzhen Itic, Guangzhou Itic,
and Tianjin Itic.
Both Shanghai Itic's and Fujian Itic's credit ratings have
been downgraded to A minus from A reflecting still strong
but slightly weak capacity to repay foreign debts.
GKC HOLDINGS: Tang trio face US$1.8m suit
-----------------------------------------
According to the SCMP, GKC Holdings' controlling
shareholder, the Tang family, has been hit with further
litigation over a subsidiary of the troubled company, with
action launched yesterday to recoup US$1.89 million.
According to a writ, Tang Ting-kwan, Eugene Tang Yiu-chuen
and Eric Tang Yiu-hong acted as guarantors for the sum
allegedly owed by German Kitchen (China) to the Kincheng
Banking Corp.
The writ says that the Tangs' liability was limited to
US$1.89 million under an agreement signed in February 1996.
As of May 17 this year, German Kitchen owed Kincheng
HK$29.6 million and a further US$166,244.
Only partial payment of HK$3.6 million has been made and
German Kitchen allegedly still owes HK$26.5 million and the
US$166,244 as of July 21.
Kincheng is also seeking interest on these sums from the
Tangs.
GOODWAY EXPRESS TOURS LIMITED: Winding-up notice
------------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Goodway Express Tours Limited.
The petition was presented on June 25, 1998 in the high
court of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 436 of 1998.
GREAT TECH LIMITED: Winding-up notice
-------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Great Tech Limited. The petition
was presented on June 26, 1998 in the high court of the
Hong Kong Administrative Region Court of First Instance,
Companies Winding-up Proceedings N0. 440 of 1998.
GUANGZHOU ITIC: Japan panel downgrades investment flagships
-----------------------------------------------------------
The Japan Rating & Investment Information Inc has
downgraded the foreign credit rating of five mainland -
based International Trust & Investment Corps (Itics) in a
bid to reflect the expected change in their future
operating environment arising from the country's on-going
financial reforms. The Itics are People's Bank of China,
Shanghai Itic, Fujian Itic, Shenzhen Itic, Guangzhou Itic,
and Tianjin Itic.
LAI SUN DEVELOPMENT: Nan Fung discloses Lai Sun stake
-----------------------------------------------------
According to the Hong Kong Standard, Nan Fung Textiles
Consolidated has disclosed an interest in 318.43 million
shares of Lai Sun Development, representing a 19.81 per
cent stake in the company.
MOTEC (FAR EAST) LIMITED: Winding-up notice
-------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Motec (Far East) Limited. The
petition was presented on June 16, 1998 in the high court
of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 420 of 1998.
PEOPLE'S BANK OF CHINA: Panel downgrades ITICs
----------------------------------------------
The Japan Rating & Investment Information Inc has
downgraded the foreign credit rating of five mainland -
based International Trust & Investment Corps (Itics) in a
bid to reflect the expected change in their future
operating environment arising from the country`s on-going
financial reforms. The Itics are People's Bank of China,
Shanghai Itic, Fujian Itic, Shenzhen Itic, Guangzhou Itic,
and Tianjin Itic.
SHANGHAI ITIC: Japan panel downgrades investment flagships
----------------------------------------------------------
The Japan Rating & Investment Information Inc has
downgraded the foreign credit rating of five mainland -
based International Trust & Investment Corps (Itics) in a
bid to reflect the expected change in their future
operating environment arising from the country's on-going
financial reforms. The Itics are People's Bank of China,
Shanghai Itic, Fujian Itic, Shenzhen Itic, Guangzhou Itic,
and Tianjin Itic.
Both Shanghai Itic's and Fujian Itic's credit ratings have
been downgraded to A minus from A reflecting still strong
but slightly weak capacity to repay foreign debts.
SHENZHEN ITIC: Japan downgrades investment flagships
----------------------------------------------------
The Japan Rating & Investment Information Inc has
downgraded the foreign credit rating of five mainland -
based International Trust & Investment Corps (Itics) in a
bid to reflect the expected change in their future
operating environment arising from the country's on-going
financial reforms. The Itics are People's Bank of China,
Shanghai Itic, Fujian Itic, Shenzhen Itic, Guangzhou Itic,
and Tianjin Itic.
TIANJIN ITIC: Japan downgrades investment flagships
---------------------------------------------------
The Japan Rating & Investment Information Inc has
downgraded the foreign credit rating of five mainland -
based International Trust & Investment Corps (Itics) in a
bid to reflect the expected change in their future
operating environment arising from the country's on-going
financial reforms. The Itics are People's Bank of China,
Shanghai Itic, Fujian Itic, Shenzhen Itic, Guangzhou Itic,
and Tianjin Itic.
=========
J A P A N
=========
ACOM COMPANY: Credit ratings cut
--------------------------------
The Asian Wall Street Journal reported that Japan Rating &
Investment Information (R&I) downgraded the long-term debt
ratings of four Japanese consumer finance companies. The
rating agency claimed that although such companies have
seen benefit from the installation of automatic contract
acceptance machines (reportedly a major factor behind the
rapidly growing market), the companies are now facing
increasing pressure. Acom Company's long-term debt was
lowered from A+ to AA-, and its short term debt from A-1+
to A-1.
AIFUL CORPORATION: Credit ratings cut
-------------------------------------
The Asian Wall Street Journal reported that Japan Rating &
Investment Information (R&I) downgraded the long-term debt
ratings of four Japanese consumer finance companies. The
rating agency claimed that although such companies have
seen benefit from the installation of automatic contract
acceptance machines (reportedly a major factor behind the
rapidly growing market), the companies are now facing
increasing pressure. Aiful Corporation's long-term debt was
lowered from A to A-.
EIWA COMPANY: Credit ratings cut
--------------------------------
The Asian Wall Street Journal reported that Japan Rating &
Investment Information (R&I) downgraded the long-term debt
ratings of four Japanese consumer finance companies. The
rating agency claimed that although such companies have
seen benefit from the installation of automatic contract
acceptance machines (reportedly a major factor behind the
rapidly growing market), the companies are now facing
increasing pressure. Eiwa Company's debt was lowered from
BBB to BBB-.
OKURA: Shares of ailing Okura suspended
---------------------------------------
According to the Hong Kong Standard, trading of shares was
suspended for Okura, a Japanese steel products and
machinery trader, after news reports of financial trouble
caused its stock to plummet.
Japanese newspapers reported last week that Okura needed
money to liquidate a money-losing jewellery subsidiary, had
sought to delay payments owed to two steel suppliers, and
that a business partner had stopped trading with Okura.
Okura said it will raise billions of yen by selling new
shares to Fuji Bank, its main lender and largest
shareholder, and others.
Okura said the capital increase had been approved by Fuji
Bank, Bank of Tokyo Mitsubishi and Dai-Ichi Kangyo Bank, as
well from Taisei Corp, Japan Radio and other companies of
the Okura business group.
The Sankei newspaper said that Okura may sell shares in a
third-party allotment to raise cash needed to liquidate a
loss-making jewellery subsidiary.
PROMISE COMPANY: Credit ratings cut
-----------------------------------
The Asian Wall Street Journal reported that Japan Rating &
Investment Information (R&I) downgraded the long-term debt
ratings of four Japanese consumer finance companies. The
rating agency claimed that although such companies have
seen benefit from the installation of automatic contract
acceptance machines (reportedly a major factor behind the
rapidly growing market), the companies are now facing
increasing pressure. Promise Company's long term debt was
lowered from A+ to AA- and its short term debt from A-1+ to
A-1.
=========
K O R E A
=========
DOOSAN GROUP: Reorganization nearly complete
--------------------------------------------
Asia Pulse reports Doosan Group Wednesday appointed its
chairman, Park Yong-oh, chief executive officer of Doosan
Ltd. which will be officially launched next month.
Doosan Ltd. will emerge from the present merger of the
group's nine subsidiaries, including its flagship beer
brewery company.
Doosan Ltd. will consist of nine sub-groups and two
separate administrative headquarters for independent
operations. The current Planning & Coordination Office will
be disbanded.
The merger will conclude the group's three-year-long
restructuring process, group sources said.
HYOSUNG MACHINERY COMPANY: Starts creditor reconciliation
---------------------------------------------------------
According to the Korean language Maeil Kyungje, the Seoul
District Court has allowed the Hyosung Machinery Company
(president, Mr, Kim Chung-sun) to start a creditor
reconciliation procedure.
KIA MOTORS: Announces capital reduction
---------------------------------------
Asia Pulse reports Kia Motors Corp. and its affiliated
commercial vehicle maker Asia Motor Co. will reduce its
capital drastically and then tender rights offerings
internationally.
In a public notice to the Korea Stock Exchange, Kia said
that it will provide a 39.6 percent rights offering for
292,426,139 shares, worth 1.46 trillion won (US$1.17
billion) at face value on Aug 20.
Asia Motor will also provide a 33.6 percent rights offering
for 116,420,721 shares worth 582.1 billion also at face
value.
Kia and Asia earlier decided to implement a 90-percent
capital reduction jointly before marketing the double
rights offering.
Following the rights offering, Kia's capital will rise to
1.5 trillion won, and Asia's capital to 600 billion won.
The two financially-troubled companies are up in the
international auction block.
TONGSUNG CONSTRUCTION: Starts creditor reconciliation
-----------------------------------------------------
According to the Korean language Maeil Kyungje, the Seoul
District Court has allowed the Tongsung Construction
Company (president, Mr, Kim Chung-ho) to start a creditor
reconciliation procedure.
WONJIN HOUSING COMPANY: Starts creditor reconciliation
------------------------------------------------------
According to the Korean language Maeil Kyungje, the Seoul
District Court has allowed the Wonjin Housing Company
(president, Mr, Yang Ju-hwan) to start a creditor
reconciliation procedure.
YOUNGHWA NATU-LINE COMPANY: Company Liquidation
-----------------------------------------------
The Younghwa Natu-Line Company advertised in the Korean
language Maeil Kyungje that the company was to be
liquidated based on the decision made at the creditor
meeting on June 30, 1998. The creditors have until October
5, 1998 to file their claims. The address is the company is
840 Yuksam-dong, Kangnam-gu, Seoul and the president is Mr.
Yi Yan-young.
===============
M A L A Y S I A
===============
ARAB-MALAYSIAN CORP: Shares plunge 26pc on debt problems
--------------------------------------------------------
According to the SCMP, shares in Arab-Malaysian Corp, which
controls Malaysia's seventh-largest banking group, plunged
as much as 26 per cent as they traded yesterday for the
first time since the company won court protection from
creditors, despite the company's attempt to restructure
about M$1 billion in debt.
On July 17, Arab-Malaysian Corp, the flagship company of
59-year-old business tycoon Azman Hashin, won court
protection from creditors, giving it time to work out a
plan to sell assets, including a stake in its banking unit,
AMMB Holdings, and restructure its debt. The company
also had interests in real estate and construction.
Of Arab-Malaysian debt outstanding, up to $400 million, or
40 per cent, was due to be repaid within two years. The
company swung to a loss of $99.17 million, or 36 cents a
share, for the year to March 31.
Debt woes at Arab-Malaysian Corp are forcing Mr Azman to
use his prized jewel - AMMB Holdings, a banking group which
also owns Malaysia's largest merchant bank - to save his
business empire. Arab-Malaysian Corp said last month it was
in talks with a foreign-based financial company to sell a
stake in AMMB in a bid to raise cash and repay debt. The
name of the company is not disclosed but is tipped to be
Belgian-Dutch insurance and banking company Fortis by
newspaper sources. AMMB, with outstanding shares of $398.8
million, has assets of $44.9 billion.
According to analysts, Mr Azman is unlikely to be able to
sell AMMB shares at a premium.
Last month, Thomson BankWatch lowered AMMB's unit Arab-
Malaysian Bank's credit rating to junk status while
Standard & Poor's said it may cut the ratings of Arab-
Malaysian Merchant Bank, the merchant banking unit of
AMMB.
The Hong Kong Standard also reported on the plunge in stock
of the company and of the company's court protection from
creditors.
J-MART SUPERSTORE SDN BHD: Winding-up petition
----------------------------------------------
Sinmah Food Industries Sdn Bhd on 23/2/98 petitioned for
the winding-up of J-Mart Superstore Sdn Bhd. The petition
is directed to be heard on 16/9/98.
KERATUR SDN BHD: Voluntary winding-up
-------------------------------------
The members of Keratur Sdn Bhd on 27/7/98 resolved to wind-
up the company voluntarily. Creditors of the company are
requested to submit their claims before 5/9/98.
MAYORIS SDN BHD: Voluntary winding-up
-------------------------------------
The members of Mayoris Sdn Bhd on 27/7/98 resolved to wind-
up the company voluntarily. The creditors of the company
are requested to submit their claims before 5/9/98.
QS HARNESS INDUSTRIES SDN BHD: Winding-up petition
--------------------------------------------------
Central Cables Bhd on 1/6/98 petitioned for the winding-up
of QS Harness Industries Sdn Bhd. The petition is directed
to be heard on 24/9/98.
TAIPING CONSOLIDATED BHD: Bonds downgraded
------------------------------------------
The RM138.33mil mortgage bond issue of Taiping Consolidated
Bhd (listed in the KLSE) has been downgraded from a B3 to
D. Rating Agency of Malaysia (RAM) based this on the
unlikeliness of the company in repaying the principal and
final coupon on the bond issue due on Sept. 15.
Under the restructuring scheme the company plans to sell JW
Marriot Hotel Kuala Lumpur and two other popular shopping
centres in Kuala Lumpur - Lot 10 and Star Hill.
TIME FROZEN FOOD SDN BHD: Winding-up petition
---------------------------------------------
Sinmah Food Industries Sdn Bhd on 16/6/98 petitioned for
the winding-up of Time Frozen Food Sdn Bhd. The petition is
directed to be heard on 25/9/98.
VALENTINO GARMENT SDN BHD: Voluntary winding-up
-----------------------------------------------
The members of Valentino Garment Sdn Bhd on 27/7/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
4/9/98.
=================
S I N G A P O R E
=================
CAM INTERNATIONAL: Subsidiary accepts settlement
------------------------------------------------
According to Singapore BusinessTimes, troubled CAM
International Holdings yesterday said its subsidiary CAM
International Trading & Investments (CIS) has accepted a
US$1.8 million (S$3.1 million) out-of-court settlement of
its suit against a Papua New Guinea firm and one of its
directors.
In a statement yesterday, CAM directors said the settlement
-- by Seribu Daya (PNG) Pty Ltd (SDP) -- would have a
positive effect on group results for the current financial
year. This is because a $2.978 million provision had
earlier been made for the case in the financial year ended
September 1997.
Mainboard-listed CAM, whose shares have been suspended from
trading on the Stock Exchange of Singapore since April 1997
when its former chairman and former chief financial officer
were charged with fraud and forgery, was last traded at
62.5 cents.
===============
T H A I L A N D
===============
PHATRA SECURITIES: Share transfer to Merrill Lynch
--------------------------------------------------
On July 31 the company transferred shares of Phatra
Securities Company Limited in the amount of 127,500,000
shares to Merrill Lynch Holding (Thailand) Limited. The
company has received the share price at baht 20.80 per
share, totalling baht 2,652,000,000 from Merrill Lynch
Holding (Thailand) Limited in full.
SANSIRI PUBLIC COMPANY: To restructure Siam Sanwa debt
------------------------------------------------------
Sansiri Public Company will restructure and settle its
debt owed to the Siam Sanwa Industrial Credit Public
Company Limited as of July 31, 1998 in the amount of baht
36,863,013.70 comprising the principle amount of baht
30,000,000. and the accrued interest of baht 6,863,013.70
This debt has been incurred under promissory note and/or
bill of exchange which were due on demand.
Due to slump of the real estate business the company says
it was unable to pay interest, so it negotiated to
restructure and settle its loan by transferring the
condominuim unit and transfering the land title deed to the
Siam Sanwa Industrial Credit Public Company Limited.
Sansiri will offer its new issue shares to Siam Sanwa
Industrial Credit Public Company Limited, one of the 17
institutional investors as specified in the SEC
announcement.
Sansiri will also restructure and settle its debt owed to
Muang ThaiLife Assurance Company Limited in amount of baht
22,155,068.
UNION ASIA FINANCE: Results announcement
----------------------------------------
Union Asia Finance PLC reports a net loss of baht 4.3
billion for the six months ending June 30. This compares to
a net profit of baht 77 million for the same period in
1997.
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 * * *