---

      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 24, 1998, Vol. 1, No. 128

                          Headlines


C H I N A   &   H O N G   K O N G

AMERICA CONSULTING: Winding-Up Notice
ARROW SHIPPING: Members' Voluntary Liquidation
BABCO EAST: Members' Voluntary Liquidation
BURLINGAME INTERNATIONAL: Posts Substantial Year-End Losses
CHARTER VIEW: Winding-up Order
CHEUNG WAH: Company Posts HK$53 Million Year-End Loss
DENSELAND LIMITED: Winding-Up Notice
FOREVER LEAD: Winding-up Order
FULLCHOICE LAND: Winding-Up Petition
GLOBAL MARCH: Arthur Andersen Appointed as Liquidators
GRAZIA COMPANY: Members' Voluntary Liquidation
GUOCO LAND: Hugh Provision Sees Loss of HK$182 Million
MARGAN LIMITED: Winding-up Order
MAVERICK FILMS: Winding-up Order
NATHAN ENGINEERING: Winding-up Order
PARKVIEW GROUP: Company Slides Into the Red
SALOTE INVESTMENTS: Deadline for Creditors' Claims
SANG HING: Winding-Up Petition
T PARSRAM & CO: Winding-up Order
WELCON CONSTRUCTION: Winding-Up Petition

I N D O N E S I A

PT CITRA MARGA: S&P Holds Rating at CC with Negative Outlook
SEMEN GRESIK: Offering to Investors Sliced

J A P A N  

BANK OF TOKYO: Modifies Bad Loan Disclosure Standards
DAIEI INC.: Offers a Glimpse Into its Realignment Plan
LONG TERM: Restructuring Plan Unveiled
OKURA & CO.: Decides to File for Bankruptcy
YAHAGI CORP.: Fears & Doubts About Restructuring Plans

K O R E A

KIA MOTORS: Auction Results Unknown
SAMSUNG MOTORS: Report Says Directed to Take Over Kia or Close

M A L A Y S I A

ALJAMIL MINING: Voluntary Winding-Up
ARENSI HOLDINGS: Company Gets Court Protection from Creditors
CHANGLUN TAYAR: Winding-up Petition
CITY ONE: Winding-up Petition
COUNTRY HEIGHTS: Bartering Property for Shares
DEVELOPMENT SECURITIES: Winding-up Petition
EMITEX ENGINEERING: Winding-up Petition
FERRY MASTER: Winding-up Petition
GLOBEPLEX (M): Winding-up Petition
KELIMIS JAYA: Winding-up Petition
LAND & GENERAL: Substantial Half-Year Losses Reported
MASTER DISPLAY: Voluntary Winding-up
MEDA TRADING: Winding-up Petition
MERCU CEKAL: Winding-up Petition
NASJUARA DEVELOPMENT: Winding-up Petition
RC SKYLINE POOLS: Winding-up Petition
SUASA MASYHUR: Winding-up Petition
SUMANA JAYA: Winding-up Petition

P H I L I P P I N E S

PHILIPPINE AIRLINES: Loss-making PAL Routes to be Raffled
SAN MIGUEL: Sells Crown Jewel to Survive Economic Turmoil

S I N G A P O R E

BROADWAY INDUSTRIAL: VEPL Buyers Not Obliged to Pay Debt

T H A I L A N D

THAI AIRWAYS: Finalizes Jet-Leasing Pact


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


AMERICA CONSULTING: Winding-Up Notice
-------------------------------------
A petition for the winding up of AMERICA CONSULTING CORPORATION
LIMITED was presented to the High Court on July 23 by Konwide
Development Limited whose registered address is situate at Suite
1601, Peregrine Tower, Lippo Centre, 89 Queensway, Hong Kong
(Peregrine Tower, Lippo Centre is now known as Tower II, Lippo
Centre), and that the said petition is directed to be heard
before the court at 9:30 am on August 26, and any creditor or
contributory of the said  company desirous to support or oppose
the making of an order on the said petition may appear at the
time of hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by the
Solicitors for the Petitioner, Messrs. Hwang & Co. at Rooms 103-
4, Sea Bird House, 1/F., 22-28 Wyndham Street, Central, Hong Kong
on payment of the regulated charges for the same.


ARROW SHIPPING: Members' Voluntary Liquidation
----------------------------------------------
The creditors of ARROW SHIPPING LINES LIMITED, which is being
voluntarily wound up, are required on or before September 11 to
send in their names, addresses and particulars of their debts or
claims to the Liquidators of the said companies, and if so
required by notice in writing from the liquidators, are
personally or by their solicitors to come in and prove their
debts or claims at such time and place specified in such notice,
or in default thereof, they will be deemed to waive all of such
debts or claims and the liquidators will be entitled seven days
after the above date, to distribute the funds available or any
part thereof to the Members.  The Liquidators are M G Bond, I
O'Brien at Prince's Building, 8th Floor, Hong Kong.


BABCO EAST: Members' Voluntary Liquidation
------------------------------------------
The creditors of BABCO EAST LIMITED, which is being voluntarily
wound up, are required on or before September 11 to send in their
names, addresses and particulars of their debts or claims to the
Liquidators of the said companies, and if so required by notice
in writing from the liquidators, are personally or by their
solicitors to come in and prove their debts or claims at such
time and place specified in such notice, or in default thereof,
they will be deemed to waive all of such debts or claims and the
liquidators will be entitled seven days after the above date, to
distribute the funds available or any part thereof to the
Members.  The Liquidators are M G Bond, I O'Brien at Prince's
Building, 8th Floor, Hong Kong.


BURLINGAME INTERNATIONAL: Posts Substantial Year-End Losses
-----------------------------------------------------------
Burlingame International, a Hong Kong company, posted a HK$165.09
million attributable loss s for the year to arch 31, down form a
net profit of HK$40.66 million the year before. The firm made a
HK$138 million exceptional loss on provision for items including
properties under development. Turnover rose 3% to HK$1.1 billion.


CHARTER VIEW: Winding-up Order
------------------------------
A winding-up order notice is hereby given that Charter View
Holdings Limited is undergoing a companies winding-up proceedings
(No 469 of 1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance . The date of order
is on August 12, 1998.  The date of presentation of petition was
July 13,1998.    


CHEUNG WAH: Company Posts HK$53 Million Year-End Loss
-----------------------------------------------------
Cheung Wah Development, a Hong Kong listed company, unveiled a
HK$53.44 million attributable loss for the year to March 31, from
a loss of HK$35.43 million the  year before. Turnover fell 21% to
HK$208.4 million.


DENSELAND LIMITED: Winding-Up Notice
------------------------------------
A petition for the winding up of DENSELAND LIMITED was presented
to the High Court on August 7 by Joint Link Enterprises Limited
whose registered office is situated at 5A, 19th Floor, Well Fung
Industrial Centre, 68 Ta Chuen Ping Street, Kwai Chung, New
Territories, Hong Kong, and that the said petition is directed to
be heard before the court at 9:30 am on September 2, and any
creditor or contributory of the said  company desirous to support
or oppose the making of an order on the said petition may appear
at the time of hearing by himself or his counsel for that
purpose, and a copy of the petition will be furnished to any
creditor or contributory of the said company requiring the same
by the Solicitors for the Petitioner, Messrs. Tsang Chau & Shuen
at 8th Floor, United Chinese Bank Building, Nos. 31-37 Des Voeux
Road Central, Hong Kong on payment of the regulated charges for
the same.


FOREVER LEAD: Winding-up Order
------------------------------
A winding-up order notice is hereby given that Forever Lead
Limited is undergoing a comapnies winding-up proceedings (No 474
of 1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance . The date of order
is on August 12, 1998.  The date of presentation of petition was
July 14, 1998.    


FULLCHOICE LAND: Winding-Up Petition
------------------------------------
A petition for the winding up of FULLCHOICE LAND LIMITED was
presented to the High Court on August 5 by the Commissioner of
Inland Revenue of Hong Kong of Revenue Tower, 5 Gloucester Road,
Wanchai, Hong Kong and that the said petition is directed to be
heard before the court at 9:30 am on September 2, and any
creditor or contributory of the said  company desirous to suppor
t or oppose the making of an order on the said petition may
appear at the time of hearing by himself or his counsel for that
purpose, and a copy of the petition will be furnished to any
creditor or contributory of the said company requiring the same
by the Counsel for the Petitioner, Suzanne Lee, Government
Counsel of Department of Justice, 2nd Floor, High Block,
Queensway Government Offices, 66 Queensway, Hong Kong on payment
of the regulated charges for the same.


GLOBAL MARCH: Arthur Andersen Appointed as Liquidators
------------------------------------------------------
By order of the High Court, dated August 6, Messrs. John J.
Toohey and David Ng, both of Arthur Andersen, 21st Floor, Wing On
Centre, 111 Connaught Road Central, Hong Kong have been appointed
Joint & Several Liquidators of GLOBAL MARCH LIMITED without a
committee of inspection.


GRAZIA COMPANY: Members' Voluntary Liquidation
----------------------------------------------
The creditors of GRAZIA COMPANY LIMITED, which is being
voluntarily wound up, are required on or before September 11 to
send in their names, addresses and particulars of their debts or
claims to the Liquidators of the said companies, and if so
required by notice in writing from the liquidators, are
personally or by their solicitors to come in and prove their
debts or claims at such time and place specified in such notice,
or in default thereof, they will be deemed to waive all of such
debts or claims and the liquidators will be entitled seven days
after the above date, to distribute the funds available or any
part thereof to the Members.  The Liquidators are M G Bond, I
O'Brien at Prince's Building, 8th Floor, Hong Kong.


GUOCO LAND: Hugh Provision Sees Loss of HK$182 Million
------------------------------------------------------
Guoco Land, a Hong Kong property listed company, has recorded a
net loss of HK$182.25 million for the 15 months to June 30 as a
result of a HK$254.47 million provision against its property
investment. Of the HK$254.47 million provision, HK$153.47 million
was provided for the fall in value for its completed properties.
The company also made another HK$101 million provision for its
attributable interest at various proposed projects.  Turnover
jumped to HK$140.07 million from HK$43.6 million a year earlier.   


MARGAN LIMITED: Winding-up Order
--------------------------------
A winding-up order notice is hereby given that Margan Limited is
undergoing a companies winding-up proceedings (No470 of 1988) in
the High Court of the Hong Kong Special Administrative Region
court of first instance.  The date of order is on August 12,
1998.  The date of presentation of petition was July 13, 1998.    


MAVERICK FILMS: Winding-up Order
--------------------------------
A winding-up order notice is hereby given that Maverick Films
Limited is undergoing a companies winding-up proceedings (No 488
of 1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of order
is on August 12, 1998.  The date of presentation of petition was
July 20, 1998.    


NATHAN ENGINEERING: Winding-up Order
------------------------------------
A winding-up order notice is hereby given that Nathan Engineering
Limited is undergoing a companies winding-up proceedings (No 466
of 1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of order
is on August 12, 1998.  The date of presentation of petition was
July 10, 1998.    


PARKVIEW GROUP: Company Slides Into the Red
-------------------------------------------
Hong Kong Parkview Group, a Hong Kong property developer,
yesterday revealed a HK$49.78 million attributable loss for the
year to March 31, down from a HK$154.25 million net profit the
year before. Turnover rose to HK$849.21 million form HK$797.86
million.


SALOTE INVESTMENTS: Deadline for Creditors' Claims
--------------------------------------------------
Notice is hereby given that the creditors of Salote Investments
Limited (in creditors' voluntary liquidation) are required on or
before 21st July, 1998 to send in their names and address, full
particulars of their debts and claims, and the name and addresses
of their solicitors, to the liquidators of the said company at
Caroline center, 10th Floor Causeway Bay, Hong Kong.


SANG HING: Winding-Up Petition
------------------------------
A petition for the winding up of SANG HING PIECEGOODS COMPANY
LIMITED was presented to the High Court on August 5 by First
Pacific Bank Limited whose registered office is situate at 22nd
Floor, First Pacific Bank Centre, 56 Gloucester Road, Hong Kong,
and that the said petition is directed to be heard before the
court at 9:30 am on September 16, and any creditor or
contributory of the said  company desirous to support or oppose
the making of an order on the said petition may appear at the
time of hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by the
Solicitors for the Petitioner, Spencer Lee & Co. at Room 605A,
Tower Two, Lippo Centre, 89 Queensway, Hong Kong on payment of
the regulated charges for the same.


T PARSRAM & CO: Winding-up Order
--------------------------------
A winding-up order notice is hereby given that T. Parsram & Co
(HK) Limited is undergoing a companies winding-up proceedings (No
477 of 1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance . The date of order
is on August 12, 1998.  The date of presentation of petition was
July 14,1998.    


WELCON CONSTRUCTION: Winding-Up Petition
----------------------------------------
A petition for the winding up of WELCON CONSTRUCTION COMPANY
LIMITED was presented to the High Court on July 30 by The
Hongkong and Shanghai Banking Corporation whose head office is
situate at 1 Queen's Road Central, Hong Kong, and that the said
petition is directed to be heard before the court at 9:30 am on
September 2, and any creditor or contributory of the said  
company desirous to support or oppose the making of an order on
the said petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition will be
furnished to any creditor or contributory of the said company
requiring the same by the Solicitors for the Petitioner, Johnson
Stokes & Master at 18th Floor, Prince's Building, 10 Chater Road,
Hong Kong on payment of the regulated charges for the same.


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


PT CITRA MARGA: S&P Holds Rating at CC with Negative Outlook
------------------------------------------------------------
Standard & Poor's said Friday that that the local currency and
foreign currency ratings on P.T. Citra Marga Nusaphala Persada
(CMNP), and its guaranteed subsidiary Citra Marga Finance B.V.,
remain on 'CC/Watch Negative/-', where they were placed on July
3, 1998.  CMNP, S&P reported, has paid only 20% of the full
US$4.5 million interest payment due on Aug. 20, 1998 on its
US$125 million 144A Eurobond.  While management has indicated  
it intends to pay the remaining 80% within two weeks, failure to
pay for three days after the due date will result in a default
under the conditions of the bond.  If CMNP has not made full
payment by the close of business on Aug. 25, the bonds will be in
default.  CMNP has indicated it paid yesterday the final
installment on the US$175 million forward rate notes due on June
15.  While ultimate repayment of principal on this note issue may
still be possible, CMNP's ability to make the full payment of
US$175 million when it falls due in December 1998 is now
extremely unlikely, Standard & Poor's said.


SEMEN GRESIK: Offering to Investors Sliced
------------------------------------------
A report appearing in the South China Morning Post late last week
says that the Indonesian government has decided to sell only 14
per cent of its stake in cement-maker Semen Gresik to strategic
investors instead of a planned 35 per cent.

Cemex of Mexico, the world's third largest cement-maker, had
earlier planned to take a controlling 35 per cent stake in Semen
Gresik, but the government reviewed the planned sale amid strong
opposition from public figures and employees of its subsidiaries.


=========
J A P A N  
=========


BANK OF TOKYO: Modifies Bad Loan Disclosure Standards
-----------------------------------------------------
The Bank of Tokyo-Mitsubishi has announced it will change its
standard for disclosure of problem loans from the Sept 30.
interim account settlement to achieve greater transparency,
according to a Kyodo News report.  The bank will adopt a
disclosure standard similar to that set by the Securities and
Exchange Commission in the United States, the bank said last
week.


DAIEI INC.: Offers a Glimpse Into its Realignment Plan
------------------------------------------------------
Daiei Inc. (8263) plans to merge subsidiaries Twin Dome City Inc.
and Kobe Central Development Co. on Nov. 1, sources close to the
nation's largest supermarket chain operator told The Nihon Keizai
Shimbun.  The merger is designed to help the debt-laden operator
of Fukuoka Dome Stadium get back on its feet, and comes as part
of Daiei's realignment of its hotel and entertainment businesses.

The merged company, to be named Fukuoka Dome, will be capitalized
at 36.95 billion yen.  Twin Dome City, which represents the Daiei
group's largest investment at more than 170 billion yen, runs
both the baseball stadium and Sea Hawk Hotel, which has more than
1,000 rooms.  Revenue totaled 33.5 billion yen in the year
through February 1998.  Kobe Central owns the 600-room Shin Kobe
Oriental Hotel and theater, as well as other commercial
facilities. Fiscal 1997 sales came to about 5.5 billion yen.  
Already saddled with 80 billion yen in debt, Twin Dome City will
need a further 6 billion yen to finance construction of a theme
park scheduled for completion in fiscal 1999.  Also under
consideration is a plan to consolidate the operations of eight
domestic hotels run by five affiliates, according to The Nihon
Keizai Shimbun.


LONG TERM: Restructuring Plan Unveiled
--------------------------------------

                       Plan Highlights

    1. Write off some 700 billion yen in bad loans.
    2. Give up claims on loans to three nonbank financial   
       affiliates, including Japan Leasing Corp.
    3. Retreat from all overseas operations.
    4. Cut 700 employees earlier than planned.
    5. Force the resignation of top management, including
       President Katsunobu Onogi.
    6. Ask retired top management to return retirement money.
    7. Sell the head office building in Tokyo's Marunouchi
       district.
    8. Order its affiliate, Japan Leasing, to discontinue
       business financing.

Long-Term Credit Bank of Japan released its restructuring plan on
Friday.  Shares in LTCB surged 18 yen, or 32%, to 74 yen -- its
highest level since early July.  

               Debt Forgiveness & Waiver of Claims

LTCB, which has huge bad loans, will waive claims on 520 billion
yen in outstanding loans to three of its affiliated nonbank
finance companies, paving the way for the government to inject
public funds into the company, Onogi told a hastily called press
conference.  The debt forgiveness plan has been designed to
remove a key obstacle to the merger with Sumitomo Trust, as the
three firms -- Japan Leasing Corp., Japan  Landic Corp. and
Nippon Enterprise Development Corp. -- reportedly hold bad real
estate loans and bad loans to other corporate borrowers.  LTCB
plans to write off 750 billion yen (US$5.2 billion) as losses
from nonperforming loans, including the 520 billion yen credits
to the three affiliates, when it closes its books for the April-
September half of this fiscal year, Onogi said.  The remaining
230 billion yen to be written off is owed by other borrowers, he
said.

                  Application for Public Funds

In return, the struggling bank will ask the government-run
Deposit Insurance Corp. (DIC) to inject public money into its
capital base to cover the losses.  "We will apply with the DIC
for the public funds as soon as possible, although we have not
figured out how much we will need specifically," LTCB president
Katsunobu Onogi told a news conference.  After the DIC's
Examination Board of Financial Crisis Management approves the
request, the DIC will funnel the funds to replenish LTCB's
capital resources, government officials said.  The DIC has a 13
trillion yen fund available, but a key precondition for any dose
of tax money is that LTCB be found to be solvent by the Financial
Supervisory Agency.  

FSA head Masaharu Hino told parliament that according to the
agency's ongoing probe of LTCB, "the information we have on hand
now shows it is not in negative net worth".  In June, Sumitomo
hired accounting firm Arthur Andersen & Co and several law firms
to conduct its own audit of LTCB.  Analysts surveyed by Reuters
noted that any gap between the firm's audit and the FSA
inspection would be hugely embarrassing to the government
watchdog.

The government has repeatedly expressed its stance to support the
planned merger in order to settle uneasiness about the nation's
financial system.  As a result of LTCB's restructuring decision
and the government's support, the two banks are expected to reach
a basic agreement by the end of September, as scheduled.  LTCB
and Sumitomo Trust announced in June they were considering a
merger that would create Japan's second-largest bank in asset
terms in a bailout deal for LTCB.

Bank of Japan Governor Masaru Hayami said, "We will respond  
appropriately when the bank has filed its application for capital
injection."  Hayami suggested the BOJ will extend collateral-free
loans to support the bank's daily operations and facilitate the
merger.  "The Bank of Japan, as the central bank, will provide
necessary support, including liquidity support to the Long-Term
Credit Bank of Japan, to ensure the smooth implementation of the
merger.  It is all the more important for LTCB to carry out its
business smoothly while enhancing market confidence until the
completion of the merger, in order to avoid confusion in the
domestic and overseas markets," Hayami said.   

Financial Supervisory Agency Commissioner Masaharu Hino concurred
with Hayami, saying the capital injection  "will help stabilize
the financial system."

Prime Minister Keizo Obuchi said, "I highly appreciate the
restructuring plan, as it would expedite a merger with Sumitomo
Trust.  My government will extend utmost assistance to this."

                     Management Departures

Onogi said, "I would like to apologize to our clients as well as
shareholders about the poor management, and I decided to step
down to clarify my responsibility as president."  Onigi said LTCB
Chairman Takao Masuzawa quit his post earlier in the day, and
that Vice Presidents Takashi Uehara and Masami Suda will also
resign immediately.  

In order to make clear management responsibility for the bank's
trouble, all six board members and 12 of the 13 directors who
have been board members will step down by the end of March, when
this fiscal year ends.  Vice President Tsuneo Suzuki will succeed
Onogi after Onogi resigns Sept. 28.

Onogi also said that salaries of directors will be reduced
uniformly to 9 million yen per year, and that the bank has
decided not to pay retirement bonuses to resigning directors for
the current fiscal year.

                 Closure of Overseas Branches

According to Onogi, the restructuring plan includes the closure
of its overseas branches and consolidation of its domestic
branches to qualify for receiving the government assistance.  
LTCB has eight overseas branches, as well as seven subsidiaries
in which it holds an equity stake of more than 50%.  "Their
operations will be taken over by Sumitomo Trust," Onogi said.

                      Workforce Reductions

Onogi also said LTCB will cut its workforce by an additional 700.
As a result, the workforce will shrink to 2,800 -- one-third less
than its peak level of 4,060 in fiscal 1993 -- by the end of the
current fiscal year ending next March 31.

Salaries of employees in managerial posts will be cut by 66.7%
from a year earlier, and those of employees in nonmanagerial
posts will be halved, Onogi said.

                     Reactions & Responses

After the announcement of LTCB's restructuring plan, Prime
Minister Keizo Obuchi said the government will give its maximum
support to the merger between LTCB and Sumitomo Trust.  
Government sources said these measures are aimed at assuring
markets that the government is resolved to stabilize the
financial system, which is swamped by bad loans.  The government
believes it must prevent the failure of LTCB and the merger talks
in order to stave off a financial system catastrophe, the sources
said.

The president of Sumitomo Trust and Banking Co. confirmed Friday
the bank will continue merger talks with the LTCB to win the
trust of markets, shareholders and customers.  Atsushi Takahashi
issued the statement following LTCB's announcement of management
restructuring plans earlier in the day.  Sumitomo Trust will
study the plans, Takahashi said.  Since launching merger
negotiations on June 26, Sumitomo Trust held talks with LTCB on
the assumption that it will take over only healthy loans, and
asked LTCB to liquidate affiliates in a responsible manner, he
said.

Thursday evening, Prime Minister Keizo Obuchi took the unusual
step of calling the president of  Sumitomo Trust, Atsushi
Takahashi, to his residence to ask him to move quickly on a
proposed merger between his bank and LTCB.  Obuchi and Takahashi
discussed ways the government might support the merger, Obuchi
told an upper house budget committee Friday.  

Finance Minister Kiichi Miyazawa said he commends Sumitomo Trust
and LTCB for agreeing to "continue constructive negotiations
toward their merger.  The basic line of the government and Bank
of Japan is to promote the merger of LTCB and Sumitomo Trust.  
The government will likely give a positive response to the
restructuring plan."  The ministry is ready to inject capital
upon the bank's application, because Miyazawa said, "if the
situation of the capital base of the LTCB does not improve,
confidence in the orderly function of the financial system as a
whole could be significantly deteriorated both at home and
abroad."

Opposition leaders, who dominate parliament's Upper House, have
repeatedly opposed and were quick Friday night to criticize the
use of public funds.  Takeshi Noda, secretary general of the
minority Liberal Party, said the government should let market
forces work to clean up the banking sector's problems, Kyodo News
agency reported.  How Japan deals with LTCB's problems is seen as
a crucial test of its ability to revive its debt-ridden banking
system and stop problems there from dragging down the whole
economy.  Reuters noted in a release that legislation needed for
the bridge bank concept is now in parliament and could be delayed
by the opposition parties who seek to foil government plans to
enact a "bridge bank" scheme to let smaller banks go to the wall
while limiting the effects on healthy borrowers.

The chairman of the influential Federation of Economic
Organizations (Keidanren), Takashi Imai, on Friday welcomed
progress toward a merger between the LTCB and Sumitomo.  Concern
about Japan's financial system is expected to be wiped out
through the merger, Imai said in a statement on the ailing LTCB's
management restructuring plan.  Imai called for the government
and the Bank of Japan to support the merger fully through the use
of public funds and special loans by the central bank, saying the
failure of big banks, such as LTCB, should be avoided in order to  
prevent serious international effects.


OKURA & CO.: Decides to File for Bankruptcy
-------------------------------------------
Okura & Co. decided to file for bankruptcy at Tokyo District
Court Friday morning.  The midsize 87-year-old trading firm
specializing in steel products and machinery, listed on the first
section of the Tokyo Stock Exchange, is estimated to have total
liabilities of 250 to 300 billion yen, including debt guarantees
(Reuters and the Associated Press peg Okura's total debts at
257.7 billion yen; Kyodo says 288.3 billion yen).

In announcing the bankruptcy at a press conference, Okura
President Yoshihiko Okura put the blame on mountains of
nonperforming real estate assets as a result of aggressive real
estate investment made during the bubble economy in the late
1980s and difficulties in raising funds through bank loans.  "I
feel like I'm having a bad dream as the worst end has come,"
Okura said. "I wish this were a dream."

Okura posted an operating profit of 3.7 billion yen for the
fiscal year ended March 31.  But it posted a net loss of about
8.8 billion yen due to losses at its subsidiaries and paper
losses on its securities holdings.  At the end of fiscal 1997,
the company's accumulated loss stood at 11.85 billion yen, a
level where liabilities almost exceeded assets.  It held problem
assets of 99.8 billion yen as of the end of March.

"We have given up seeking a business restructuring and have filed
for bankruptcy," the Tokyo-based Okura said in a statement
Friday.  In late June, Okura asked for help from firms such as
Taisei Corp. (1801), and Fuji Bank (8317), an institution which
it has major dealings with.  However, most of the companies that
were asked to supply a total of 10 billion yen in fresh capital
through a private placement deal had refused by Thursday. Okura's
efforts to survive through a possible merger or new share
issuance via a third-party allocation also had faltered in the
face of Japanese banks' tight lending stance.

Okura, Kyodo News noted, will mark the fourth failure this year
of a listed  company, following Daido Concrete Co., Mitsui Wharf
Co., and Asakawagumi Co.

Okura's stock was suspended from trading by the Tokyo Stock
Exchange (TSE) before the morning session got under way, Kyodo
said, adding that firms with strong business links to Okura, such
as Fuji Bank and construction giant Taisei, took losses.   The
TSE said that Okura's shares will be delisted Saturday.

Fuji Bank says it is owed 38 billion yen by Okura -- 28 billion
yen on account of direct lending to Okura, 2 billion yen to its
domestic subsidiaries and 8 billion yen to its overseas units.  
Fuji anticipates that 15 to 20 billion yen of its loans to Okura
are now worthless.  Fuji Bank indicated that it already set aside
8.3 billion yen in loan- loss reserves in connection with its
loans to Okura and its group companies in the last business year.

Yasuda Trust and Banking Co. said it has 17.7 billion yen in
outstanding loans to Okura and plans to set aside some 4 billion
yen in loan-loss reserves to cover possible irrecoverable loans
in the fiscal first half ending Sept. 30.


YAHAGI CORP.: Fears & Doubts About Restructuring Plans
------------------------------------------------------
Shares in Yahagi Corp. (5544 JP) fell 73 yen in trading Friday to
47 yen amid concern about the company's financial health and
doubts that its plans to restructure and shut three iron-related
operations will be effective.  (Bloomberg L.P.  21-Aug-1998)


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


KIA MOTORS: Auction Results Unknown
-----------------------------------
Auction officials remained tight-lipped but analysts said that US
car giant Ford Motor Company, which holds a 16.9 per cent stake
in Kia along with its Japanese affiliate, would be the most
viable contender, although Ford may have to find a South Korean
partner because of the heavy financial burden incurring from
Kia's debts.

General Motors, Daewoo Motor and upstart Samsung Motors are also
contending in the acquisition for Kia and its truck-building
affiliate, Asia Motors Corp.

If either General Motors or Ford wins, the face of the country's
embattled vehicle industry could change. The South Korean bidders
regard the auction as a spring board for their battle to keep
their heads above water.

                           *   *   *

The ChosunIlbo newspaper tells a slightly different story, saying
that, as the deadline for submitting bids for Kia Motors passed
Friday, it learned that GM of the US has decided to withdraw from
competing with the four auto makers, who lodged their offers with
Anderson Consulting, arbiters of the bidding.

That leaves Samsung, Daewoo, Hyundai and Ford in competition to
take over the bankrupt Kia.

Ford's bid is known to contain a reservation clause in which it
requests further negotiations regarding the write-off of Kia's
loans. Industry analysts say that Ford is the lead contender to
win the bidding, followed by Samsung, Hyundai and Daewoo.  This
is because the bidding conditions favor the injection of foreign
capital and the introduction of advanced techniques and
specialized automation.

It is known that Ford's total investment offer is in the region
of US$300 million, but due to the reservation their initial bid
could be lower than the three domestic competitors.  Samsung is
likely to have submitted the highest bid on account of their
recent capital raising drive and has the advantage of currently
employing ex-Kia and Asia Motors staff.  However Daewoo and
Hyundai have the edge in technical contribution.

It is postulated that if Ford win the bid, it may offer to form a
consortium with one of the Korean companies.

                           *   *   *

All sources agree that the winning bidder will be selected by the
end of the month and announced on September 1, 1998.  A 15-member
panel will study the bids before a winner is announced on
September 1, Kia's creditor banks indicated.  The successful
bidder must buy at least 51 percent of the equity of Kia and its
Asia Motors Corp. commercial vehicle arm.



SAMSUNG MOTORS: Report Says Directed to Take Over Kia or Close
--------------------------------------------------------------
A report appearing in the South China Morning Post says that the
South Korean Government will seek to close Samsung Motors, the
latest entry to the car industry, if it fails to take over Kia
Motors in its bid, according to news magazine Sisa Journal, which
said hat it had obtained the detailed plans of the government's
restructuring objectives, which included streamlining the
nation's ship-building, car, steel and petrochemical industries.



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


ALJAMIL MINING: Voluntary Winding-Up
------------------------------------
The members of Aljamil Mining Co. Sdn Bhd on 15/8/98 resolved to
wind-up the company voluntarily.  Creditors are requested to
submit their claims before 21/9/98.


ARENSI HOLDINGS: Company Gets Court Protection from Creditors
-------------------------------------------------------------
The Asian Wall Street Journal reported that the manufacturing
concern Arensi Holdings Bhd., together with some of its units,
have received court protection from creditors for nine months.  
Arensi's proposed restructuring plan may include points on
capital reduction, rights issues, acquisition of assets.


CHANGLUN TAYAR: Winding-up Petition
-----------------------------------
Silverstone Marketing Sdn Bhd on 28/7/98 petitioned for the
winding-up of Changlun Tayar Sdn Bhd.  The petition is directed
to be heard on 13/1/99.


CITY ONE: Winding-up Petition
-----------------------------
Ong Kim Lim on 20/7/98 petitioned for the winding-up of City One
Sdn Bhd.  The petition is directed to be heard on 13/1/99.


COUNTRY HEIGHTS: Bartering Property for Shares
----------------------------------------------
Kuala Lumpur-listed Country Heights is reportedly offering its
investment properties in return for listed Malaysian shares in an
innovative "win-win" deal for both buyer and seller.  In a
centrespread advertisement in Malaysian newspapers on Wednesday
aimed primarily at businesses, the company offered its various
commercial, industrial and residential projects in exchange for
designated blue-chip shares traded on the Kuala Lumpur Stock
Exchange (KLSE).

Country Heights' scheme, reported in The Business Times, is
called "Property in Exchange for Shares," and will value the
shares at the prices they were at when the KL Composite Index was
at the 638 level, or the net book valuation, whichever is lower.  
The KLCI -- which closed at 351.04 points yesterday -- was last
near the 638-point mark in late April this year.

According to BT, Country Heights said in its ad that the concept
was aimed at businesses which need industrial, commercial or even
residential properties for restructuring, diversification or
expansion purposes.  Projects featured in the ad included
completed lots of residential units, shophouses, shopping malls,
golf resorts, factories and warehouse.  The company has issued a
list of 25 blue-chip shares eligible under its barter offer.  
They include bellwether counters such as Tenaga Nasional,
Maybank, Telekom, Genting and Sime Darby, according to BT.

A quick comparison of the closing prices of these stocks against
their prices in late April shows that Country Heights will pay a
premium of around 80 per cent for the shares, compared to their
closing prices yesterday.  Against the 80 per cent premium,
however, potential buyers have to consider if Country Heights'
properties are priced above or below comparable projects by other
developers.  

The company said purchasers will have to meet the total cost of
the property with shares and no cash top-ups would be accepted.   
"If a buyer does not have enough shares, he will have to buy more
to meet the full cost," said a Ms Yeo, a Country Heights'
marketing executive.  Not surprisingly, BT noted, the scheme has
attracted overwhelming response.

Ms Yeo told BT that all its marketing phone lines were jammed
with calls from potential buyers after its advertisement.  The
scheme is the brainchild of Country Heights' founder and managing
director Lee Kim Yew, who apparently decided that a stock-for-
property barter would add liquidity to both the property and
stock markets at a time when individuals and corporations were
short of cash.  Asked about the choice of the 638-point mark on
the KLCI, Ms Yeo quipped: "We don't know. Maybe it is part of Tan
Sri's (Lee Kim Yew's) phone number."   Attempts by BT to contact
Mr Lee were unsuccessful, but Country Heights officials told BT
that transactions under the scheme were subject to approval by
Malaysia's Securities Commission.

"We are confident of getting the necessary approvals," one
official told BT.  "After all, this is an innovative scheme which
will add liquidity to the market."  While some analysts surveyed
by BT see the scheme as a way for the company to clear a backlog
of unsold properties, others said they needed more time to digest
the details.

Country Heights is one of the leading property developers in
Malaysia.  Although it is better known for its flagship homestead
project near Bangi (where key political and corporate figures
have bought homes) and its Mines Resort project south of Kuala
Lumpur, the company also has numerous other residential,
commercial and resort-style projects all over the country.  All
are up for grabs under the Property in Exchange for Shares
scheme.   Country Heights' shares have been suspended since Aug
14 at the request of the company.  It last traded at RM2.39 on
Aug 13.


DEVELOPMENT SECURITIES: Winding-up Petition
-------------------------------------------
APG Geo Systems Sdn Bhd on 15/7/98 petitioned for the winding-up
of Development Securities Sdn Bhd.  The petition is directed to
be heard on 25/11/98.


EMITEX ENGINEERING: Winding-up Petition
---------------------------------------
Lindeteves-Jacoberg (Malaya) Sdn Bhd on 13/5/98 petitioned for
the winding-up of Emitex Engineering (Terengganu) Sdn Bhd.  The
petition is directed to be heard on 23/9/98.


FERRY MASTER: Winding-up Petition
---------------------------------
Delmas-Lines (M)) Sdn Bhd on 5/5/98 petitioned for the winding-up
of Ferry Master Sdn Bhd.  The petition is directed to be heard on
28/8/98.


GLOBEPLEX (M): Winding-up Petition
----------------------------------
Mohamed Yatim Bin Idris on 18/5/98 petitioned for the winding-up
of Globeplex (M) Sdn Bhd.  The petition is directed to be heard
on 22/9/98.


KELIMIS JAYA: Winding-up Petition
---------------------------------
Prodeal Sdn Bhd on 29/7/98 petitioned for the winding-up of
Kelimis Jaya Sdn Bhd.  The petition is directed to be heard on
13/11/98.


LAND & GENERAL: Substantial Half-Year Losses Reported
-----------------------------------------------------
Land & General Bhd (a major property developer, listed in the
KLSE) incurred a group pre-tax loss of RM92.3mil for the 6 months
ended June 30, 1998, compared to a RM53.5mil pre-tax profit for
the corresponding period.  The group attributed its loss to
"tough business conditions".  The performance was further
affected by weakening Ringgit currency and the high interest
rates.


MASTER DISPLAY: Voluntary Winding-up
------------------------------------
A notice of Creditors Meeting has been given on 17/8/98 for the
voluntary liquidation of Master Display Sdn Bhd.  The meeting is
scheduled on 28/8/98.


MEDA TRADING: Winding-up Petition
---------------------------------
Strong Mix Concrete Sdn Bhd on 13/7/98 petitioned for the
winding-up of Meda Trading Sdn Bhd.  The petition is directed to
be heard on 30/10/98.


MERCU CEKAL: Winding-up Petition
--------------------------------
MBF Finance Bhd (listed in the KLSE) on 26/5/98 petitioned for
the winding-up of Mercu Cekal Sdn Bhd.  The petition is directed
to be heard on 24/9/98.


NASJUARA DEVELOPMENT: Winding-up Petition
-----------------------------------------
MBF Finance Berhad (Listed in the KLSE) on 26/5/98 petitioned for
the winding-up of Nasjuara Development (M) Sdn Bhd.  The petition
is directed to be heard on 23/9/98.


RC SKYLINE POOLS: Winding-up Petition
-------------------------------------
Shun Yi Sdn Bhd on 18/6/98 petitioned for the winding-up of RC
Skyline Pools Sdn Bhd.  The petition is directed to be heard on
17/12/98.


SUASA MASYHUR: Winding-up Petition
----------------------------------
Insas Berhad (listed in the KLSE) on 22/7/98 petitioned for the
winding-up of Suasa Masyhur Sdn Bhd.  The petition is directed to
be heard on 16/10/98.


SUMANA JAYA: Winding-up Petition
--------------------------------
Liew Chun Leong on 13/4/98 petitioned for the winding-up of
Sumana Jaya Sdn Bhd.  The petition is directed to be heard on
28/8/98.


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


PHILIPPINE AIRLINES: Loss-making PAL Routes to be Raffled
---------------------------------------------------------
The transport department may require local airlines to serve the
so-called missionary routes that the cash-strapped Philippine
Airlines has stopped serving.  Tansport Undersecretary Willy
Evangelista told the Manila Times that he would meet with PAL
officials to find out if the flag carrier still intends to resume
servicing its former routes.  The Times said that PAL used to fly
to more than 30 destinations in the country before a pilots'
strike forced it to trim operations.  It now flies to only 15
points including Iloilo, Bacolod, Davao, Cebu, Puerto Princesa,
Cagayan de Oro and other profitable routes.

PAL, according to the Times, is the only airline that was
required to service missionary routes or unprofitable routes, "If
PAL is no loger interested, then we may request the other
airlines to service these routes," Evangelista said.  He said his
department was also planning to invite other investors to come
in.  So far, only Eva Air of Taiwan has expressed interest in
servicing the routes aban-doned by PAL.  But Eva Air may not
serve domestic routes as a result of the cabotage law.  It will
have to buy into a local airline or put up a local subsidiary.


SAN MIGUEL: Sells Crown Jewel to Survive Economic Turmoil
---------------------------------------------------------
The Philippines' largest food and beer conglomerate San Miguel
Corp (SMC) said on Friday it gave up its entire 45 percent stake
in Nestle Philippines Inc to survive a prolonged  Asian financial
crisis, but analysts surveyed by Reuters said it could be another
lost jewel for the firm.

SMC said in a statement its board of directors approved the plan
to sell its entire stake in Nestle Philippines to its majority
shareholder, Swiss food and beverages group Nestle S.A., at over
30 billion pesos (US$700 million).  Proceeds of the sale will be
used to reduce the company's huge debt load.

"In the short term, it has a net positive effect on the company.  
But looking ahead, it could be negative because the company will
be left only with the beverage business; it could warrant a
further discount to the issue," Jeanette Yu-Tan, an analyst at
Securities 2000 told Reuters.  

Nestle annnounced earlier in Switzerland it would pay 27.7
billion pesos, less than the sum mentioned by SMC.  A Nestle
spokesman explained to Reuters that the 27.7 billion pesos would
be paid into an escrow account pending approval of the deal by
San Miguel shareholders.  When the transaction was completed, San
Miguel would collect the 27.7 billion pesos plus interest.

San Miguel shareholders are due to vote on the deal at a special
meeting on November 12.

Julie Villena, analyst at Magnum International Securities,
interviewed by Reuters, said of San Miguel: "If the benefit
outweighs the costs as they value it, well and good.  But in the
long run, I hope they don't regret selling Nestle because they
are giving up a cash cow."

Delfin Gonzalez, chief financial officer of San Miguel, told a
news conference his company had approximately 45 billion pesos in
debt, part of which would be retired in the next 18 months.  New
San Miguel chairman Eduardo Cojuangco said in a statement the
sale of the Nestle stake signalled a new strategy in the way the
company ran its business.  "We are restructuring San Miguel's
business portfolio with a view to moving away from businesses
where we have a passive role, and focusing instead on our core
businesses and those areas where we can bring our competencies
and management strengths fully to bear on their results."  

San Miguel should be ready for a longer-than-expected downcycle
in its businesses as a result of the Asian financial crisis,
company officials added at a news conference.  "We believe, and
our chairman believes, that we have not yet passed the difficult
period. He wants San Miguel to be financially strong so that we  
will have the capacity to weather the difficult period," said San
Miguel president Francisco Eizmendi.

San Miguel made it clear to investors that it will retain
ownership of a five-hectare parcel of land valued at about P1.5
billion currently occupied by NPI's Magnolia ice cream plant on
Aurora Boulevard in Metro Manila. San Miguel will also retain  
ownership of the popular Magnolia brand and NPI will continue to
pay royalties for use of the brand.  The valuation obtained by
San Miguel in this transaction is above the average of the
various estimates published by several international investment
banks in the past ten months. The valuation compares favorably
with recent average market valuations of major international food
and beverage companies, and reflects San Miguel's assessment of
NPI's future revenues, earnings and cash generating capacity.

After this transaction, San Miguel's cash position will be
greater than its debt.  J.P. Morgan acted as financial adviser to
San Miguel in the transaction.

Founded in 1890, San Miguel is one of the largest listed food and
beverage companies in Southeast Asia and is active within the
brewing and beverages, food and food-related, and packaging
areas. San Miguel's ordinary shares trade on the Philippine Stock
Exchange and trade in ADR form in the United States (each equal
to ten SMC Class B common shares).  Prices for the ADRs may be  
accessed on the NASD OTC Bulletin Board under the symbol SMGBY.
Quotes for San Miguel ordinary shares may be accessed on
Bloomberg under the symbol SMC/B PM and on the Reuter Equities
2000 Service under the symbol SMC.


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


BROADWAY INDUSTRIAL: VEPL Buyers Not Obliged to Pay Debt
--------------------------------------------------------
Following is the full-text of a Letter to the Editor of The
Business Times:

   "I refer to your report yesterday, 'Bankers extending further
credit: Broadway'.

   "The report said that 'Viquest . . . was sold for $1 to its
three managers on condition that they take over Viquest's $6.4
million debt . . .'.

   "This point is misleading. Under the transaction, the buyers
of Viquest Engineering Pte Ltd (VEPL) were assigned the benefit
of the debt, and do not have to bear the obligation of paying the
debt as implied in the report.

   "Our announcement to the Stock Exchange of Singapore on
Wednesday on our disposal of VEPL clearly stated that 'the
balance sum of approximately $6.4 million in aggregate owing to
VIPL from VEPL will be assigned to the purchaser for a
consideration of $1 in cash'.

   "The implication in your report that the new owners of VEPL
are obliged to assume VEPL's $6.4 million debt has direct, grave
and serious bearing on the buyers' financial standing, as well as
on the viability of Viquest Engineering in the eyes of its
creditors.

   "I hope you will appreciate the sensitivity arising from this
inaccurate portrayal of the situation in the report. I shall be
grateful if you will carry this clarification."

                              S S Wong
                              Executive Chairman
                              Broadway Industrial Group Limited


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


THAI AIRWAYS: Finalizes Jet-Leasing Pact
----------------------------------------
After a three-month delay, The Nation reports, Thai Airways
International is to conclude its bid to lease seven new aircraft
and submit the conclusions to its board later this month.  A THAI
official said that the bankruptcy law have delayed the leasing of
10 new aircraft because negotiations on payment conditions have
slowed the process.  However, the airline has just wrapped up a
dispute with Credit Lyonais/Debis Airfinance on leasing its three
new aircraft for which THAI has agreed to pay the three months
leasing fee in advance and is currently proceeding with the
bidding process for leasing seven more new aircraft.

Earlier, THAI signed a contract with Credit Lyonais/Debis
Airfinance to lease its 2-A330-300 under the condition that the
airline would pay the leasing fee after the leased aircraft went
into operation.  Debis Airfinance later asked to change the
payment conditions concerning risks after the bankruptcy law went
into effect.

According to the new condition, the airline must pay the leasing
fee before putting the aircraft into service. However, Debis
Airfinance agreed to reduce the average leasing fee from 2.84 per
cent per quarter to 2.80 per cent.



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.  

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 * * *