TCRAP_Public/980821.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, August 21, 1998, Vol. 1, No. 127

                         Headlines


C H I N A   &   H O N G   K O N G

CHAOYANG JINSHAN: Closed for Illegal Futures Trading
HANKO INTERNATIONAL: Requests Creditor Standstill Agreement
JIEYANG JINSHEN: Closed for Illegal Futures Trading
KPS RETAIL: Sifting Through Litigation Claims
LAI SUN: Property Sales Moving Forward
MEIXIAN HENGFU: Closed for Illegal Futures Trading
MEIZHOU HUAXIANG: Closed for Illegal Futures Trading
MEIZHOU HUAZIN: Closed for Illegal Futures Trading
TOMSON PACIFIC: Tomson Chief's Cash Flow 'Underground'

I N D O N E S I A

GARUDA INDONESIA: Bleeding $1.82 Million Daily

J A P A N  

DAIEI INC.: Accelerating Restructuring Efforts
LONG TERM: Bank's Solvency & Government Intervention Unclear
NISSAN MOTOR: Moody's Lowers Credit Rating to Baa3
MITSUBISHI MOTOR: Moody's Lowers Credit Rating to Baa3
SEIYU LTD.: Accelerating Restructuring Efforts

K O R E A

CHUNYEWON PUBLICATIONS: Starts Creditor Reconciliation Procedure
DAEWOO GROUP: Korea First Contracts for Auditing
DONGHWA DUTY: One of Cho Hung's Three Workout Targets
DONGHWA INVESTMENT: One of Cho Hung's Three Workout Targets
HAEKSHIM TELETEX: Completed Creditor Reconciliation Procedure
HYUNDAI GROUP: Korea Exchange Talks to Younghwa About Auditing
HYUNDAI MOTOR: Government Officials Fear Strike's Effect
JINRO COORS: Creditors Can't Close Deal To Sell Jinro Coors
KIA MOTORS: Today May Bring News of a Successful Bid
KUNYOUNG CONCRETE: Completes Creditor Reconciliation
LG GROUP: Korea First Contracts with Anjin for Auditing
SAMSUNG GROUP: Hanil Contracts with Sedong for Auditing
SK GROUP: Korea First Contracts for Auditing
YUJIN TRAVEL: One of Cho Hung's Three Workout Targets

M A L A Y S I A

CITY ONE: Winding-Up Petition
MERCU CEKAL: Winding-Up Petition
NASJUARA DEVELOPMENT: Winding-Up Petition
RC SKYLINE: Winding-Up Petition
SEE HUP: Winding-Up Petition
SUASA MASYHUR: Winding-Up Petition

P H I L I P P I N E S

PHILIPPINE AIRLINES: Acesite Hotel Claims PhP4.24 Million Due
PHILIPPINE ASSOCIATED: Government May Assume Debts
PHILIPPINE PHOSPHATE: Government May Assume Debts

S I N G A P O R E

BROADWAY INDUSTRIAL: New Funding Flows as Standstill Finalized
SHOWPLA ASIA: Appoints Ernst & Young as Advisor

T H A I L A N D

BANGKOK UNION: Insurer's Financial Statements Suspect
POWER-P PUBLIC: SET Requests Further Clarifications & Disclosures
SIAM CEMENT: Will Name Restructuring Advisor Within the Month
SIAM CITY: Setting-Up New Unit to Manage Non-Performing Loans
THAI AIRWAYS: Management Explains Reasons for Bt4.3b 3Q Loss
THAI OIL: PTT Agrees to Inject Bt4 Billion to Ease Liquidity
THAI OLEFINS: Urged to Revamp its Senior Management
THAI PETROCHEMICAL: Debt to Equity Swap Suggested by Creditors


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


CHAOYANG JINSHAN: Closed for Illegal Futures Trading
----------------------------------------------------
The Asian Wall Street Journal reported that market regulators in
Guangdong and public security officials have closed Chaoyang
Jinshan Co. and four other futures firms for illegal trading of
Hong Kong's Hang Seng Index futures.  The firms' assets, which
are operated as consulting companies, have been frozen, and the
heads of the companies faces court charges.  The Asian Wall
Street Journal states that this move is part of an ongoing crack-
down of financial market irregularities in China.  Officially,
the semi-convertible Chinese yuan can only be exchanged for goods
and services.  However, the trading in foreign exchange
denominated instruments is regarded as a loop hole which some
economist say is exposing the yuan to currency rate fluctuation
pressures.


HANKO INTERNATIONAL: Requests Creditor Standstill Agreement
-----------------------------------------------------------
Hanko International Holdings Ltd announced the group is
experiencing a very rough operating market conditions. With a
recent downturn in business and the tightening of the credit
policy fundamentals, the group is requesting its bankers and
financial companies to agree a formal standstill and to
restructure the group`s borrowing facilities.  The group
emphasized that the normal operation will not be affected.  The
group has appointed a financial advisor to represent it to look
for interested strategic investors for a potential equity
injection. As at today, the aggregate banking facilities of the
group is approximately HK$157 million. Also, the group foresee a
substantial provision is made for inventory and doubtful debts
for receivable. No agreements has been reached between the group
and the relevant banking institution.


JIEYANG JINSHEN: Closed for Illegal Futures Trading
---------------------------------------------------
The Asian Wall Street Journal reported that market regulators in
Guangdong and public security officials have closed Jieyang
Jinshen Co. and four other futures firms for illegal trading of
Hong Kong's Hang Seng Index futures.  


KPS RETAIL: Sifting Through Litigation Claims
---------------------------------------------
According to reports appearing in the South China Morning Post
and the Hong Kong Standard, Video chain KPS Retail Stores, Ltd.,
reached a last-minute out-of-court settlement earlier this week
with a disgruntled customer who was suing it for imposing a time
limite on pre-paid coupons.

Six others have filed writs claiming refunds of their prepaid
coupons.  Another of the 7 claimants rejected a settlement offer.
If his claim is successful, it would open the floodgates to
claims by other KPS customers.

The Post also reports that a landlord has taken High Court action
in a bid to force KPS out of premises in the Tai Kok Tsui Centre.
Lindenford Ltd claims that more than $1.25 million is outstanding
in rent, management charges, rates and licence fees from KPS
Retail Stores Ltd.  The owner of the 3 shopping centre units, let
to KPS in 2 tenancy agreements dated January 1996, is also
seeking profits earned by KPS from yesterday until the premises
are vacated.


LAI SUN: Property Sales Moving Forward
--------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Lai Sun Development has sold 20 more flats at its 50
per cent owned development The Panorama in Tsuen Wan. The selling
price was as low as $3,169 per square foot according to the scmp
and the average price was $3,550 per square foot according to the
Hong Kong Standard.

The Post recalled that the sale is part of the group's disposal
plan to lower debts and increase working capital.  Lai Sun has
more than $9 billion debts after the recent disposal of $3
billion worth of assets. It has reduced its gearing to 49 per
cent from 65 per cent with interest cover at 1.8 times.

A securities firm said Lai Sun's long-term growth had already
been damaged by tight liquidity.


MEIXIAN HENGFU: Closed for Illegal Futures Trading
--------------------------------------------------
The Asian Wall Street Journal reported that market regulators in
Guangdong and public security officials have closed Meixian
Hengfu Futures Co. and four other futures firms for illegal
trading of Hong Kong's Hang Seng Index futures.  


MEIZHOU HUAXIANG: Closed for Illegal Futures Trading
----------------------------------------------------
The Asian Wall Street Journal reported that market regulators in
Guangdong and public security officials have closed Meizhou
Huaxiang Jinxiong Futures Co. and four other futures firms for
illegal trading of Hong Kong's Hang Seng Index futures.  


MEIZHOU HUAZIN: Closed for Illegal Futures Trading
--------------------------------------------------
The Asian Wall Street Journal reported that market regulators in
Guangdong and public security officials have closed Meizhou
Huazin Futures Co. and four other futures firms for illegal
trading of Hong Kong's Hang Seng Index futures.  


TOMSON PACIFIC: Tomson Chief's Cash Flow 'Underground'
------------------------------------------------------
David Tong Cun-lin denied in court yesterday conspiracy to
defraud the SFC and the takeovers committee over the Tomson
Pacific takeover of Bond Corp International. He also denied
offering a $26.4 million kickback, according to a report
appearing in the South China Morning Post.  When asked where the
money came from to lend to Rivera Holdings to help associate
Tomson Pacific buy shares in Bond Corp International (later named
World Trade Centre Group) when he was a director of Rivera
Holdings, he said that since he had not made any money in Hong
Kong, the only source was remittance from Taiwan. He said
companies such as Rivera were constantly looking for loans from
him.

The conspiracy suspect hit a losing streak on arrival in Hong
Kong in 1988 and lost a lot of money. A US$5 million limit on
cash being remitted from Taiwan forced Tong to rely on
underground money houses in Taiwan to remit cash from his
Taiwanese companies to his Hong Kong firm David Tong Co.

The trial before Mr Justice Brian Keith continues.


=================
I N D O N E S I A
=================

GARUDA INDONESIA: Bleeding $1.82 Million Daily
----------------------------------------------
National flag carrier Garuda Indonesia is reported to be losing
three billion rupiah a day because of sluggish demand and low air
fares.  Garuda president Robby Djohan said the airline needed to
raise domestic flight fares by 30 to 40 per cent to offset the
rising operational deficit.  He also said the firm was in talks
to pay back interest only on US$200 million in foreign debts due
this year.

According to the Jakarta Post, Garuda president Robby Djohan said
that the airline needed to raise domestic flight fares by 35 to
40 per cent to offset the rising operational deficit. He also
said the company was in talks to pay back interest only on US$200
million in foreign debt due this year.  

He said he expected Airbus Industrie to agree to lower monthly
leasing charges to $550,000 per aircraft from the previous
proposed level of $750,000.  The original cost was $1.05 million
per aircraft, but the company needs to generate more revenue.

Garuda has raised its fares twice, first in January at an average
of 35 per cent and then in May by 37 per cent following a sharp
increase in the price of jet fuel.


=========
J A P A N  
=========


DAIEI INC.: Accelerating Restructuring Efforts
----------------------------------------------
Daiei Inc. (8263) is accelerating efforts to sell group assets or
liquidate affiliates.  Japan's largest supermarket chain has seen
earnings eroded by sluggish personal spending but hopes to
attract investors by reducing liabilities, according to a report
appearing in The Nihon Keizai Shimbun.  Daiei will raise to 400
billion yen its target for revenue from the sale of assets and
operations, from 260 billion yen.  The company hopes this will
get back on track its plan to reduce consolidated interest-
bearing liabilities by 1 trillion yen by 2001.  Daiei wants to
sell its Ala Moana Shopping Center in Hawaii and two large
buildings in Tokyo, and is considering a sale of various service
and restaurant operations.   

Shares in Daiei Inc., rose 1 yen to 399 on this news, according
to Bloomberg, L.P., following these announcements.  

Analysts surveyed by Kyodo News questioned whether the
liquidation plan, which also includes two buildings in Tokyo's
Ginza shopping and business district, will go smoothly in view of
the flagging real estate market in Japan.  Kyodo added, without
citing sources, that to partially finance the debt reduction
plan, Daiei also expects to raise 400 billion yen through
offering shares in its subsidiary, Lawson Inc., to public  
trading.


LONG TERM: Bank's Solvency & Government Intervention Unclear
------------------------------------------------------------
The Financial Supervisory Agency has no data indicating Long-Term
Credit Bank of Japan (8303) has liabilities in excess of its
assets, Commissioner Masaharu Hino told a lower house budget
committee Wednesday.  Hino declined further comment, saying the
agency is still investigating, according to The Nihon Keizai
Shimbun.  Hino indicated the agency plans to probe LTCB's
finances on a consolidated basis, saying it is looking at the
bank's affiliates.  Meanwhile, Prime Minister Keizo Obuchi again
denied media reports the government intends to spend public funds
to support a recently announced merger plan between LTCB and
Sumitomo Trust & Banking Co. (8403).

In a separate news report, however, The Nihon Keizai Shimbun
reports that the Japanese government and the Bank of Japan are
considering taking steps to shore up Long-Term Credit Bank of
Japan (8303) to smooth the troubled bank's proposed merger with
Sumitomo Trust & Banking Co. (8403), citing sources close to the
discussions.  According to the sources, three assistance measures
are being considered: using government guarantees to support
purchases of bad loans from LTCB and its affiliated nonbanks by
Cooperative Credit Purchasing Co.; providing LTCB with special
central-bank loans to prevent a liquidity crisis; and shoring up
LTCB's capital base with injections of public funds.

LTCB and Sumitomo Trust announced in June plans to prepare for a
merger, a move widely seen as a rescue of LTCB. The talks have
not progressed as quickly as expected, however, and in the
interim, LTCB shares have fallen below their par value, and the
bank has been hit with credit-rating downgrades.  Sumitomo Trust,
for its part, is unwilling to take over LTCB's nonperforming
loans.

The underlying fear inside the government and the BOJ is that if
the merger talks stall, jitters over the health of the financial
system would shake the financial markets.

Besides providing guarantees on borrowing by Cooperative Credit
Purchasing Co., the government is also discussing the possibility
of having the Deposit Insurance Corp. purchase bad loans from
LTCB.  The BOJ, meanwhile, would tap a special-loan facility that
previously has been used only for failed institutions.
Uncollateralized loans can now be made available in cases that
would have a significant impact on the financial system,
according to Nihon Keizai sources.

Shares in Long-Term Credit Bank of Japan Ltd. (8303 JP ) rose
9 yen to 56 on the news, according to Bloomberg, L.P., that the
Japanese government is considering using between 500 billion yen
($3.47 billion) to 1 trillion yen in taxpayer money to bolster
the bank's capital prior to its planned merger with Sumitomo
Trust & Banking Co., citing the Nihon Keizai newspaper.


NISSAN MOTOR: Moody's Lowers Credit Rating to Baa3
--------------------------------------------------
Moody's Investor Service lowered the credit ratings of Nissan
Motor Company.  Nissan's long-term debt was lowered from Baa1 to
Baa3.  A Baa3 rating is one notch above junk bond level.  
Nissan's short-term debt was also lowered from P-2 to P-3.  
Nissan is reportedly facing trouble in both the US and Japanese
markets.  Nissan's weak product lineup and reliance on incentives
was suggested as the reason for poor US business performance.
Nissan also reportedly has 1.5 trillion yen in debt.

Notwithstanding the downgrade, shares in Nissan Motor Co. (7201)
rose 3 yen to 477, Bloomberg, L.P., reports.


MITSUBISHI MOTOR: Moody's Lowers Credit Rating to Baa3
------------------------------------------------------
Moody's Investor Service lowered the credit ratings of Mitsubishi
Motor Corporation.  Mitsubishi's long-term debt was lowered from
Baa2 to Baa3.  A Baa3 rating is one notch above junk bond level.  
Mitsubishi is reportedly facing mounting difficulties and
pressure in its effort to restore long term profitability.  As
the company is a truck manufacturer, it has been especially hard
hit by the current recession in Japan, and in Southeast Asia.  
Mitsubishi also reportedly has 1.5 trillion yen in debt.

Perhaps reflecting the news of the downgrade, shares in
Mitsubishi Motors Corp. (7211) fell 7 yen to 282, Blooomberg,
L.P., reports.


SEIYU LTD.: Accelerating Restructuring Efforts
----------------------------------------------
Seiyu Ltd. (8268) is accelerating efforts to sell group assets or
liquidate affiliates.  The major supermarket chain has seen
earnings eroded by sluggish personal spending, sending its stock
price lower, and hopes to attract investors by reducing
liabilities, according to a report appearing in The Nihon Keizai
Shimbun.   Seiyu will have liquidated Cine Saison Co., Seiyu
Investment Management Inc. and seven other affiliates by the end
of August. It announced Wednesday it will see 34.2 billion yen in
red ink on those closures. Seiyu set aside about 19 billion yen
in loss reserves for the year ended February 1998, so it expects
to post a 15.2 billion yen extraordinary loss for the half year
ending August.  Seiyu plans to offset that with 14.4 billion yen
in proceeds from a sale of stock in Tokyo department store Ryohin
Keikaku Co. (7453), and forecasts an 800 million yen net profit
for the half year.

Shares in Seiyu Ltd. (8268) rose 5 yen to 410, according to
Bloomberg, L.P., following Seiyu's announcements.


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


CHUNYEWON PUBLICATIONS: Starts Creditor Reconciliation Procedure
----------------------------------------------------------------
The Seoul District Court advertized in the Korean language Maeil
Kyungje that the Chungyewon Publications company started its
creditor reconciliation procedure.  The creditors have until
September 14, 1998 to file their claims.  The company's address
is 476-2 Umyun-dong, Seocho-gu, Seoul and the representatives are
Mr. Kim Jin-hong and Mr. Yang Kye-bong.


DAEWOO GROUP: Korea First Contracts for Auditing
------------------------------------------------
Domestic banks launched detailed investigations into the assets
and liabilities of the subsidiaries belonging the five largest
business groups Monday, sources at the financial institutions
said Wednesday, according to the ChosunIlbo newspaper. The audits
represent a major step in the government-expedited restructuring
of Hyundai, Samsung, Daewoo, LG and SK. The sources said that
major creditor banks including the Commercial Bank of Korea,
Korea First Bank, Hanil Bank and Korea Exchange Bank had
appointed a number public accounting firms for the investigations
last week.

As the main creditor bank for Daewoo, Korea First signed
contracts for financial investigations with two accounting firms
and plans to proceed with the audits according to a time schedule
agreed upon by the two groups.


DONGHWA DUTY: One of Cho Hung's Three Workout Targets
-----------------------------------------------------
According to the Korean language Maeil Kyungje, the Cho Hung Bank
has decided to place three firms, including Donghwa Duty Free
Shop Co., under its workout program.  Cho Hung Bank will hold a
creditor meeting on August 28, 1998 to decide the suspension
period of this company's bonds.


DONGHWA INVESTMENT: One of Cho Hung's Three Workout Targets
-----------------------------------------------------------
According to the Korean language Maeil Kyungje, the Cho Hung Bank
has decided to place three firms, including Donghwa Investment
Development Co., under its workout program.  Cho Hung Bank will
hold a creditor meeting on August 28, 1998 to decide the
suspension period of this company's bonds.


HAEKSHIM TELETEX: Completed Creditor Reconciliation Procedure
-------------------------------------------------------------
The Seoul District Court advertized in the Korean language Maeil
Kyungje that the Haekshim Teletex company completed its creditor
reconciliation procedure.  The company's president is Mr. Chung
Chang-hun.


HYUNDAI GROUP: Korea Exchange Talks to Younghwa About Auditing
--------------------------------------------------------------
Domestic banks launched detailed investigations into the assets
and liabilities of the subsidiaries belonging the five largest
business groups Monday, sources at the financial institutions
said Wednesday, according to the ChosunIlbo newspaper. The audits
represent a major step in the government-expedited restructuring
of Hyundai, Samsung, Daewoo, LG and SK. The sources said that
major creditor banks including the Commercial Bank of Korea,
Korea First Bank, Hanil Bank and Korea Exchange Bank had
appointed a number public accounting firms for the investigations
last week.

Korea Exchange is the major creditor bank for Hyundai and has
contracted the Younghwa Accounting Firm, which has yet to begin
its audit.


HYUNDAI MOTOR: Government Officials Fear Strike's Effect
--------------------------------------------------------
South Korea warned yesterday its shaky auto industry risked
losing its international competitiveness forever if crippling  
labour disputes at Hyundai Motor Co are further drawn out.   
"Hyundai's disputes, if prolonged further, will completely
destroy the domestic base and international competitiveness of
our overall auto industry," a Commerce, Industry and Energy
Ministry official said.

South Korea's auto production, once the world's fifth largest,
plunged 35.4 per cent year-on-year to 1.53 million units in the
first seven months of 1998, according to reports circulated by
China Daily and other news agencies via Xinhua.  Auto exports
also suffered a 10.1 per cent drop to US$5.45 billion.  "So far
this year, labour disputes have cost US$550 million in auto  
exports," the official told China Daily. "Hundreds of auto parts
makers, including Hyundai's 302 subcontractors, have already been
insolvent."  The three-month-long standoff at Hyundai cost the
country 1.5 trillion won (US$1.1 billion), he said.

Hyundai, the country's largest car maker, reportedly capable of
producing some 2.4 million cars a year at home and abroad, has
lost 770 billion won in production since the dispute erupted in
May over a plan to sack 8,000 workers.  Hyundai also suffered 540
billion won in export losses over the period, while its component
producers saw revenue fall by 600 billion won.  The ministry
estimated, according to China Daily, Hyundai's production loss at
85,800 units over the three months and export loss at 57,200
units.  "We are more concerned about parts contractors than
Hyundai. Much of the country's networked parts production has
already suffered incurable damage following Kia's failures," the
ministry official said.


JINRO COORS: Creditors Can't Close Deal To Sell Jinro Coors
-----------------------------------------------------------
The Coors Brewing Company of the United States and creditor banks
of Jinro Coors Brewery Company have failed to negotiate a deal on
the sale of Jinro Coors Brewery.  Negotiations have been on going
over the past two months, however Coors Brewing has held to its
position that creditors must write off 350 billion won of Jinro
Coors total debt of 620 billion won as a condition of the sale.
Coors suggested that the write off should be made before it could
inject $100 million in capital into Jinro Coors.  

According to the Korea Times, one creditor was quoted as saying
that court mediation would be better than handing over Jinro
Coors under the conditions suggested by Coors.  The sale of Jinro
Coors is the first potential case of a Korean bankrupt company
being sold overseas, so industry analysts believe the creditors
are limited in how may concessions they can make.

Jinro Coors Brewing Co. holds 20 percent of Korea's beer market
and is currently operating under court receivership. It was
started as a joint venture between Coors and Korea's Jinro
conglomerate.  However, Coors later sold its 33 percent
ownership in the Jinro Coors Brewery to Jinro.


KIA MOTORS: Today May Bring News of a Successful Bid
----------------------------------------------------
The government and the creditors' group of Kia and Asia Motors
announced that should only one company submit a bid, that company
will automatically be declared the winning bidder.  

At press time, none of the five invited bidders, Hyundai, Daewoo,
Samsung, Ford and GM, had dropped out.  The bidding deadline is
today.

Kia Chairman Yoo Chong-ryul added that if the winner finds a
discrepancy between its own valuation of Kia and Asia Motors'
assets and liabilities and the previously announced figures, the
creditors' group would be willing to consider additional write-
offs.


KUNYOUNG CONCRETE: Completes Creditor Reconciliation
----------------------------------------------------
The Seoul District Court advertized in the Korean language Maeil
Kyungje that the Kunyoung Concrete Industry company has completed
its creditor reconciliation procedure.  The company's address is
246-104 Kueui-dong, Kwangjin-gu, Seoul and the president is Song
Jin-su.


LG GROUP: Korea First Contracts with Anjin for Auditing
-------------------------------------------------------
Domestic banks launched detailed investigations into the assets
and liabilities of the subsidiaries belonging the five largest
business groups Monday, sources at the financial institutions
said Wednesday, according to the ChosunIlbo newspaper. The audits
represent a major step in the government-expedited restructuring
of Hyundai, Samsung, Daewoo, LG and SK. The sources said that
major creditor banks including the Commercial Bank of Korea,
Korea First Bank, Hanil Bank and Korea Exchange Bank had
appointed a number public accounting firms for the investigations
last week.

The Commercial Bank signed a contract with Anjin Accounting and
is in discussions with LG to determine a specific timetable for
the financial inquiry.


SAMSUNG GROUP: Hanil Contracts with Sedong for Auditing
-------------------------------------------------------
Domestic banks launched detailed investigations into the assets
and liabilities of the subsidiaries belonging the five largest
business groups Monday, sources at the financial institutions
said Wednesday, according to the ChosunIlbo newspaper. The audits
represent a major step in the government-expedited restructuring
of Hyundai, Samsung, Daewoo, LG and SK. The sources said that
major creditor banks including the Commercial Bank of Korea,
Korea First Bank, Hanil Bank and Korea Exchange Bank had
appointed a number public accounting firms for the investigations
last week.

Hanil Bank, Samsung's major credit bank, contracted Sedong Public
Accountants, which began looking into the groups financial
reports early this week. Hanil plans to work out the
restructuring measures of Samsung's subsidiaries by mid-
September.


SK GROUP: Korea First Contracts for Auditing
--------------------------------------------
Domestic banks launched detailed investigations into the assets
and liabilities of the subsidiaries belonging the five largest
business groups Monday, sources at the financial institutions
said Wednesday, according to the ChosunIlbo newspaper. The audits
represent a major step in the government-expedited restructuring
of Hyundai, Samsung, Daewoo, LG and SK. The sources said that
major creditor banks including the Commercial Bank of Korea,
Korea First Bank, Hanil Bank and Korea Exchange Bank had
appointed a number public accounting firms for the investigations
last week.

As the main creditor bank for SK, Korea First signed contracts
for financial investigations with two accounting firms and plans
to proceed with the audits according to a time schedule agreed
upon by the two groups.


YUJIN TRAVEL: One of Cho Hung's Three Workout Targets
-----------------------------------------------------------
According to the Korean language Maeil Kyungje, the Cho Hung Bank
has decided to place three firms, including Yujin Travel Co.,
under its workout program.  Cho Hung Bank will hold a creditor
meeting on August 28, 1998 to decide the suspension period of
this company's bonds.


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


CITY ONE: Winding-Up Petition
-----------------------------
Ong Kim Lin had on 20.10.1998 presented a winding up petition
against City One Sdn. Bhd.  The petition is directed to be heard
on 13.1.1999.


MERCU CEKAL: Winding-Up Petition
--------------------------------
MBf Finance Berhad had on 26.5.1998 presented a winding up
petition against Mercu Cekal Sdn. Bhd.  The petition is directed
to be heard on 24.9.1998.


NASJUARA DEVELOPMENT: Winding-Up Petition
-----------------------------------------
MBf Finance Berhad had on 26.5.1998 presented a winding up
petition against Nasjuara Development (M) Sdn.Bhd.  The petition
is directed to be heard on 23.9.1998.


RC SKYLINE: Winding-Up Petition
-------------------------------
Shan Yi Sdn. Bhd. had on 18.6.1998 presented a winding up
petition against RC Skyline Pools Sdn. Bhd.  The petition is
directed to be heard on 17.12.1998.


SEE HUP: Winding-Up Petition
----------------------------
Ready Mixed Concrete Malaysia Sdn. Bhd. had on 10.6.1998
presented a winding up petition against See Hup Engineering
Construction Sdn. Bhd.  The petition is directed to be heard on
24.9.1998.


SUASA MASYHUR: Winding-Up Petition
----------------------------------
Insas Berhad had on 22.7.1998 presented a winding up petition
against Suasa Masyhur Sdn. Bhd.   The petition is directed to be
heard on 16.10.1998.


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


PHILIPPINE AIRLINES: Acesite Hotel Claims PhP4.24 Million Due
-------------------------------------------------------------
Hotel owner and operator Acesite (Philippines) Hotel Corp.
filed a formal claim before the Securities and Exchange
Commission (SEC) to compel Philippine Airlines, Inc. (PAL) to pay
its unpaid hotel bills amounting to some 4.24 million Philippine
pesos (PhP), according to BusinessWorld.  Acesite recently filed
the claim in behalf of its Holiday Inn Manila Pavilion.  Acesite
said PAL used Holiday Inn's facilities as part of an agreement to
provide accommodations and meals for its passengers and staff on
official business in the country.  

PAL's debt payments had been indefinitely suspended following the
SEC's creation of an interim receiver committee which was tasked
to draw up the airline's rehabilitation plan. Acesite's claim
comes in the heels of a similar motion filed by a fellow hotel
operator Pathfinder Holdings, Inc.  The firm said PAL owes it
PhP4.6 million for the airline's use of the facilities of Cebu
Plaza Hotel in Cebu City.


PHILIPPINE ASSOCIATED: Government May Assume Debts
--------------------------------------------------
FINANCE Secretary Edgardo Espiritu said yesterday he supports a
proposal, requiring the government to shoulder the staggering
liabilities of ailing government firms, including over P70
billion debts incurred by Philippine Associated Smelting and
Refining Corp. (PASAR) and Philippine Phosphate Fertilizer Corp.
(Philphos), to facilitate the privatization of these losing state
firms.

Espiritu told the Manilla Times that, while government assumption
of the liabilities will drastically increase its own debt stock,
the action will remove a major drain to the government's scarce
resources.  According to Espiritu, if the government will not
dispose these ailing enterprises, their losses will force the
government to incur "continuous losses."  He explained that "what
we (or government officials) want to do is to cut the continuous
loss because each year the government assumes additional losses"
from the operations of these state-owned enterprises.

Major Philippine mining firms, which serve as government's
partners in Pasar, have contested in court a proposed
restructuring of Pasar's P20 billion debts, which would dilute
their stake in the company.

Pasar is the biggest copper smelter in Southeast Asia.  Pasar has
huge liabilities brought about by a series of peso devaluations
that bloated its foreign borrowings.


PHILIPPINE PHOSPHATE: Government May Assume Debts
-------------------------------------------------
FINANCE Secretary Edgardo Espiritu said yesterday he supports a
proposal, requiring the government to shoulder the staggering
liabilities of ailing government firms, including over P70
billion debts incurred by Philippine Phosphate Fertilizer Corp.
(Philphos) and Philippine Associated Smelting and Refining Corp.
(PASAR), to facilitate the privatization of these losing state
firms.

The former Ramos administration, the Times reported, toyed with
the idea of transferring to the government the liabilities of
these sick government enterprises to improve their allure to
prospective buyers.  But it shelved the plan, because of
complicated legal, if not diplomatic, problems.  For instance,
the Times explained, the government could not implement Philphos'
financial restructuring, because of the vehement opposition of
the Republic of Nauru.  The governments of Nauru and the
Philippines each hold a 50 percent stake in Philphos, a firm with
over P40 billion liabilities guaranteed by the Philippine
government.

Under the shelved financial restructuring plan, the government
would convert into additional equity the bulk of Philphos' debt,
but Nauru resisted it, because it would have diluted its stake in
Philphos to less than 5 percent.  Because of Nauru's stubborn
resistance to a dilution, Ramos' economic managers thought of
just writing off its exposure in the fertilizer firm.  But again
Ramos' advisors dropped the proposal for fear of violating the
country's Anti-Graft Law.  

Philphos is the biggest fertilizer maker in Southeast Asia.  
Philphos has huge liabilities brought about by a series of peso
devaluations that bloated its foreign borrowings.


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


BROADWAY INDUSTRIAL: New Funding Flows as Standstill Finalized
--------------------------------------------------------------
Packaging company Broadway Industrial Group Ltd said its bankers
were not going to pull the plug and were in the midst of
finalising additional credit facilities.  The mainboard-listed
company, which posted a 1997 loss of $9.7 million, said it has
been granted through wholly-owned subsidiary, Broadway
Enterprises (Pte) Ltd, new short-term facilities of up to $4.8
million from DBS Bank, according to a report appearing in The
Business Times.

The credit is in addition to the existing facilities from DBS in
conjunction with a standstill letter on its facilities from the
group's major bankers. Documentation of the standstill letter is
now being finalised, according to BT.

In June, Broadway's auditors, Price Waterhouse, said in the
company's latest annual report that "the validity of the going
concern assumption . . . depends on the successful conclusion" of
the negotiations.   Price Waterhouse added that there were
uncertainties that "may affect (Broadway's) future operations,
the recoverability of (its) assets and in turn (its) ability to
pay or refinance (its) debts as they fall due".  

Meanwhile, Broadway said it had sold loss-making and wholly-owned
Viquest Engineering Pte Ltd, and that the disposal would help
improve its financial position.  The sale is expected to result
in an extraordinary loss of about $2.8 million for the current
financial year and would cause Broadway's net tangible assets per
share to fall to 28 cents from 30.4 cents as at end-1997.  
Viquest, which has never made money, was sold for $1 to its three
managers on condition that they take over Viquest's $6.4 million
debt and discharge guarantees given to Viquest by other related
Broadway parties, and all inter-company amounts owing between
Viquest and Broadway be discharged.  Broadway's investment in
Viquest comes to about $7.7 million, comprising mainly
shareholder's loans which are unsecured, non-interest bearing and
with no fixed terms of repayment.


SHOWPLA ASIA: Appoints Ernst & Young as Advisor
-----------------------------------------------
Cash-strapped Showpla Asia, whose parent company is under court
protection, has appointed Ernst & Young as financial adviser and
is in "serious discussions" with potential investors, according
to a report appearing in The Business Times.  The mainboard-
listed company added that some of its bankers are calling in
their loans and there was "no assurance" that the banks would
agree to continue its loans under terms "satisfactory" to
Showpla, BT said. Its statement yesterday said that the outcome
of the talks with the potential investors will be a "major
factor" in its debt revamp, which Ernst & Young is helping to map
out.

Last Friday, Showpla's privately-held Japanese parent, Showa
Plastics, filed for judicial management. It said that a $20
million debt owed to the group by its parent may not be
recoverable.  Showpla said yesterday that it was currently
difficult to assess with certainty the impact of Showa's filing
for judicial management on its business.  Also, given the close
relationship between Showpla and its parent, financing and other
aspects of business and financial conditions may well be
affected, it said.

As of June 30, BT reports, Showa owed Showpla trade receivables
of $14.3 million, a loan of $4.6 million, and other debts
totalling $5.8 million, making a total of $24.7 million. The
Showpla group in turn owed $981,857 to Showa as trade payables
and $3.6 million in other payables, making a total of $4.6
million.  Showpla said its cashflow constraints were due to:

Showa holds a 33.07 per cent stake in Showpla, which is listed on
the Singapore and Osaka stock exchanges.  Showpla's chairman and
managing director, Kenzo Nakagawa, is also Showa's president and
representative director.   The Japanese company has guaranteed
the equivalent of $33.2 million in outstanding debt, denominated
in Sing dollars, US dollars, yen and Hongkong dollars, owed by
its Singapore-listed company.  Mr Nakagawa has also personally
guaranteed Showpla debt totalling US$11.2 million (S$19.7
million) and 52.4 million baht (S$2.2 million). He has also
guaranteed debts owed by Showa.


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


BANGKOK UNION: Insurer's Financial Statements Suspect
-----------------------------------------------------
Referring to reviewed financial statements for the period ending
June 30, 1998 filed by Bangkok Union Insurance Plc, BUI's auditor
expressed a qualified opinion on paragraph 3 stating "...Except
the fact regarding to the decreasing of securities value as
stated at article 2.3 of the footnote it was not been declared in
the balance sheet to comply under general accepted accounting
standard".  According to the Accounting Standard No.12
"Accounting for marketable securities", the carrying amount of
marketable equity securities portfolio shall be the lower of its
aggregate cost or market value, determined at the balance sheet
date.  The SET notified the company for rectification within 30
days or by September 18,1998.


POWER-P PUBLIC: SET Requests Further Clarifications & Disclosures
-----------------------------------------------------------------
The SET had earlier requested POWER-P PUBLIC COMPANY LIMITED
(SET:PP) to give additional information regarding transactions
with related companies as appeared on the company financial
statements for the first quarter ended 31 March 1998.  

PP provided limited clarification on 29 July 1998 to the SET.  
However, the SET says that it requires further clarifications
from and actions of PP to explain:

    1. Advance paid to P. Group Holding Co., Ltd.

       The SET requests PP to clarify information regarding
       advance paid to P-group Holding Co., Ltd. amouting to
       Bht.24 million by including :

       - The cause of the advance paid
       - The length of time the advance remained outstanding
       - The reason the advance is non-interest bearing and not
         secured.
       - Terms and conditions of the advance
       - The reasons the company's managements decide not to make
         any allowance for doublful account.

    2. Compliance of the SET's regulations concerning the
       connected transactions.

       The SET considers the company's transactions with related
       parties are subjected to its regulations concerning the
       connected transactions. Therefore, the SET commands PP to
       take the following actions:

       - Prepare and submit informations regarding the connected
         transaction.
       - Publicize the information in at least 1 newspaper.
       - Inform its shareholders in written and conduct
         shareholders' meeting to get rectification in engaging
         such transaction.
       - Disclose the transaction in its annual reports.


SIAM CEMENT: Will Name Restructuring Advisor Within the Month
-------------------------------------------------------------
Siam Cement Plc (SCC) will name a financial adviser for corporate
restructuring later this month or early September, executive vice
president Tawee Butsunthorn told The Nation.  The present SCC
management plan has been around for more than five years and has
been refined continuously. Through the restructuring, assets in
the cement group are estimated to be Bt3 billion, the steel group
assets at Bt2 to 3 billion, and Bt5 billion for the petrochemical
group.  Tawee said the new management structure, that would
include Japanese, American and European partners, would benefit
SCC -- and is in line with what the creditors wanted SCC to do.
Last Saturday, the SCC raised its cement sale price by Bt100 per
tonne. In 1998, the local cement demand is expected to fall 50
per cent. He predicted that the demand would grow by 1 to 2 per
cent next year depending on the government's stimulus measures.

Thailand's cement exports for 1998 are expected to total 3.5
million tonnes, while domestic sales will be 4.5 million tonnes.
In 1999, SCC has predicted local cement sales to reach 12 million
tonnes, while 4.5 million tonnes will be exported.  SCC had
earlier restructured its operations by setting up a new wholly-
owned subsidiary, Siam Cement Industry Co Plc, to hold shares in
SCC's cement-related subsidiaries, according to SCC's filing to
the Stock Exchange of Thailand.


SIAM CITY: Setting-Up New Unit to Manage Non-Performing Loans
-------------------------------------------------------------
Siam City Bank will set up a new unit to manage non-performing
loans in an apparent attempt to freeze them at less than 48 per
cent of its total loans, its president said.  The move is in
preparation for a planned privatisation by the government under
which it is expected to be sold to new investors by the end of
this year.  SCIB president Sompoch Intranukul said in a press
conference that an ad-hoc unit needed to be established although
it would require a lot of staff.  

The bank's management will be restructured to focus on dealing
with problem loans, which he said amounted to half of the
outstanding Bt240 billion loans, according to reporters for The
Nation.  Phaitoon Kijsamrej, first senior executive vice
president of SCIB, noted that the special unit would scrutinise
these problem loans. The work will be divided according to the
nature of the borrowers' businesses.  

The government announced last week that SCIB was required to set
full provisioning of up to 8.5 per cent of risk-weighted assets
before the bank could be subject to the privatisation process.
SCIB is also required to seek a financial adviser for its planned
privatisation by Sept 15 before the financial authorities
announce the divestiture modalities for the plan fifteen days
later.  Sompoch said that the new unit would be divided into
three or four groups managing NPLs in separate sectors such as
large businesses, the real-estate sector, the agriculture sector
and the commercial sector in addition to services.  

SCIB has classified its NPLs into four grades. Clients in grade
A, whose projects are already finished, will be given conditions
allowing for some compromises while those in grade B, whose
projects are not yet complete, may be given a grace period for
their borrowings and may need to seek new foreign partners in
order to keep their businesses running.  For clients in grade C,
who mostly have non-performing collateral, the bank will attempt
to rent out the land or buildings used as collateral in an
attempt to generate income while those in grade D are not
expected to be able to repay their loans and the bank will
subsequently take legal action against them.  

Sompoch said that client classification and the monitoring of
NPLs would result in stagnant growth in the bank's lendings but
the bank would make a relentless effort to raise the level of
deposits. Deposits are expected to rise by Bt7 billion by the end
of this year.  The bank's deposits now stand at Bt150 billion.
According to Sompoch, SCIB's loan-to-deposit ratio is expected to
fall from 177 per cent to 150 per cent by the end of this year.

The Financial Institutions Development Fund (FIDF) holds a 97-
per-cent stake in SCIB.  The FIDF will convert Bt60 billion of
debt owed to it by SCIB into equity.  Such a conversion will
result in the bank's equity base hitting Bt80 billion and will
raise the capital-adequacy ratio to 20 per cent.  The bank's
reserves will also be increased from Bt30 billion to Bt70
billion.  "If it converts all of that into equity, then we will
have no need to raise any fresh capital to meet the requirement,"
Sompoch said.  He added that since February SCIB had borrowed an
additional Bt2 billion to Bt3 billion from the FIDF. The bank has
to pay about Bt700 million to Bt800 million in interest every
month to the FIDF.  He said the interest burden would be
alleviated when the fund converted its remaining debt into
equity.  As for external debt, the bank owes US$500 million in
foreign currencies, mainly with long-term maturity.


THAI AIRWAYS: Management Explains Reasons for Bt4.3b 3Q Loss
------------------------------------------------------------
Thai Airways International Plc (THAI) said Monday that its net
loss had mushroomed to Bt4.3 billion (US$102.4 million) in the
three months to June due to accounting changes and foreign-
exchange losses.  The result came on top of a loss of just
Bt310.28 million in the same period last year, the company said
in a statement to the Stock Exchange of Thailand (SET).  

In the nine months to June, THAI said it had recorded a net loss
of Bt2.99 billion compared to a profit of Bt2.66 billion in the
corresponding period of the previous fiscal year.  The loss per
share was Bt2.14 against earnings per share of Bt1.91 baht in the
corresponding period last year. THAI shares closed the morning
down Bt0.50 at Bt36 in thin trade.  The company statement said
third-quarter operating results had been lower than the Bt4.01
billion of a year earlier due to a change in the accounting
policy for recording gains or losses on exchange rates arising
from foreign loans.  It said the figures had previously been
listed as deferred items, then recorded in the financial
statement as income or expenses.  This affected the increase in
foreign-exchange losses amounting to Bt6.34 billion compared to
the earlier figure.  Aircraft sales in the quarter generated 2.30
billion baht, the audited results showed.  

For the nine months to June, Thai Airways said operating results
had been lower than a year earlier by 5.66 billion baht with
changes in accounting policies the main factor.  The changes
resulted in higher losses on exchange rates amounting to 8.89
billion baht, it said.  Thailand's national carrier has been hit
badly by a slump in the value of the baht since its float in July
last year, a move which triggered the regional financial crisis.
A sharp decline in regional tourism has also harmed the airline.
It has been forced to cut back on some in-flight services, such
as wine and meals on certain flights.


THAI OIL: PTT Agrees to Inject Bt4 Billion to Ease Liquidity
------------------------------------------------------------
The board of the Petroleum Authority of Thailand (PTT) agreed
yesterday to pump four billion baht into Thai Oil to ease the
liquidity problems of the country's largest oil refiner.  The
funds will involve an increase in the registered capital of Thai
Oil, in which the state oil company already holds 49%, PTT
executives told the Bangkok Post, and another four billion baht
would be raised by other shareholders of Thai Oil including Shell
and Caltex.  A PTT source said Thai Oil's debt was much larger
than its registered capital, according to the Post.  The PTT
board also agreed that Chow Chowkhanyun, the founder of Thai Oil,
could sell his 25% stake in the refinery to US-based Coastal
Petroleum.  The Chowkhanyun family will now negotiate details of
the sale, the Post said.


THAI OLEFINS: Urged to Revamp its Senior Management
---------------------------------------------------
THAI Olefins Co, which needs to urgently restructure its debts
and find new partners, should reshuffle its senior management, a
senior executive of the Petroleum Authority of Thailand (PTT) has
said.  TOC, one of Thailand's three operators of ethylene
cracking facilities, was founded and is majority owned by the
state-owned oil and gas enterprise PTT.  

"To solve TOC's problem, the company must quickly find funding
partners and convince the banks to reschedule its debts.
Therefore, it needs to have a new leader who has expertise in the
petrochemical sector and is accepted by the industry and foreign
creditors," a confidential source told a reporter for The Nation.  
TOC's senior vice president Adithep Bisalbutr is heading the
debts and shareholder restructuring talks with banks and
potential investors since the company's acting president Pala
Sookawesh has no time to pursue the task. Pala is also the
governor of PTT.  According to the PTT executive, TOC's directors
have acknowledged the firm's administrative problem but have yet
to find an appropriate person to head the firm. TOC's board is
chaired by the former permanent secretary of the Industry
Ministry Sivavong Changkasiri.

"Some board members even suggested that the best way out was for
PTT to sell out its stake in TOC, citing the fact that PTT had
limited funds to help the firm. But Pala did not agree with the
idea since the PTT's pull-out would mean his failure since the
governor is the one who heads the company," he said.

With a total investment of over US$700 million, TOC has been
criticised as an expensive investment by PTT which blamed the
international boom in construction of new olefins production
facilities at that time as the reason for the high costs. The
high investment costs is attributed to TOC's competitiveness and
debt problems.  Lying at the heart of Thailand's second national
petrochemical complex, TOC has an annual capacity to produce
385,000 tonnes of ethylene and 190,000 tonnes of propylene.


THAI PETROCHEMICAL: Debt to Equity Swap Suggested by Creditors
--------------------------------------------------------------
A representative of the creditor banks of Thai Petrochemical
Industry plc (TPI) has floated the idea of converting the firm's
huge debts into equity as part of the debt restructuring process
now under negotiation between the major shareholders and 140
creditors.  The official, who works for a Japanese creditor bank
and spoke on condition of anonymity to The Nation, said that
about 20 foreign creditors are considering this option.  

The 140 creditors have lent a combined US$3.2 billion to TPI.
Fourteen of them, whose contribution represents 75 per cent of
the amount, are on the steering committee which has the mandate
to act on behalf of all the creditors. The source from the
Japanese bank is understood not to be on the steering committee.
Wachirabhandhu Promprasert, executive vice president of TPI, said
the $3.2 billion debt will climb to $3.8 billion by the year 2003
if the company is unable to service the interest payments. TPI
has suspended its interest and principal payments.  Currently,
the company's interest burden is around Bt10 billion or $250
million a year.  

"But we're trying in every way to ensure that the debt-
restructuring plan will be completed by the end of this year," he
said.  Wachirabhandhu said that in October, creditors will be
invited to consider the restructuring plan which is expected to
be completed next month.  The Japanese bank source said that some
foreign creditors want to convert their loans into equity if
TPI's cashflow position fails to show an improvement over the
next four months.  "We're waiting to see the performance during
this four-month grace period."  The creditors, who convened
Wednesday in Bangkok, do not have collateral tied up in the
US$3.8 billion (Bt155.8 billion) loan plus interest.  

The Nation's source said that if the loans are eventually to be
converted to equity, the World Bank's investment arm, the
International Finance Corporation, will become the intermediary
in the negotiations with other foreign and local creditors.
TPI is being advised by the US-based Chase Manhattan Bank. TPI
group's aggregate borrowings from foreign and local institutions
top $4 billion.  TPI and its 60 per cent-owned subsidiary TPI
Polene Plc (TPIPL) have been hit hard by the economic crisis and
the devaluation of the baht against the US dollar, which has
almost doubled their debt burden. TPIPL is also involved in the
process of debt restructuring with US investment bank Merrill
Lynch acting as its financial adviser.


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.  ISSN: 1520-9482.  

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