TCRAP_Public/980825.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      

          Tuesday, August 25, 1998, Vol. 1, No. 129


C H I N A   &   H O N G   K O N G

CHONGQING SPECIAL: China Daily Tells of One Turnaround Story
CLIMAX INTERNATIONAL: Losses Continue through First Quarter
HONKO INTERNATIONAL: Financial Situation Unstable
LOGIC INTERNATIONAL: Cost-Cutting Program Yields Year-End Losses
MANSION HOLDING: Settlement with 38 of 140 Creditors Reached
RECOR HOLDINGS: Quarterly Results; Auditors Express Doubts
SAME TIME: Year-End Results Reflect Losses
TAK WING: Sumitomo Sues on Bad Check; Creditors' Meeting Called
THAI-ASIA FUND: Deloitte & Management Disagree on Financials
THEME INTERNATIONAL: SEHK Says Disclosure was Inadequate


PT CITRA MARGA: Risks Defaults on US$300 Million of Bonds

J A P A N  

CHUGAI MINING: Shares Fall on LTCB Restructuring News
LONG TERM: Additional Details About Restructuring Plan Surface
OKURA & CO: Liquidator Looking for Food & Aerospace Buyers


DAEWOO GROUP: Daewoo Cars Roll into Florida Port
DONG AH: Debt Payments to Be Frozen to 2002
DONGBANG SECURITIES: FSC Orders Revival Plan by September 19
HALLA GROUP: Good News Flows from Bowater-Halla Transaction
HYUNDAI MOTORS: 36-Day Strike Draws to a Close
KOREA LONG: FSC Orders Revival Plan by September 19
SK SECURITIES: FSC Orders Revival Plan by September 19
SSANGYONG INVESTMENT: FSC Orders Revival Plan by September 19


FERRY MASTER: Winding-Up Petition
FIVEWAY STEEL: Winding-Up Petition
MAROYO SDN.: Winding-Up Order Entered
MODERN HEALTH: Members' Voluntary Winding-Up
MODERN POCELAIN: Members' Voluntary Winding-Up
PACIFIC CONTAINER: Members' Voluntary Winding-Up
SUPPERFLEX SDN: Winding-up Petition
UDS INDUSTRIES: Winding-up Petition


ORIENT BANK: Will Reopen with New Owners Paying US$75 Million
ROYAL PACIFIC: SEC Investigates Unlicensed Golf Share Sales
SAN MIGUEL: Nestle Sale Stuns Portfolio Managers
SIME DARBY: Parent Offers to Buy Minority Shares Before Delisting


AMCOL HOLDINGS: Ex-Directors Guilty of Failing in Duties


ALPHATEC ELECTRONICS: Alphatec Sues KPMG Charging Fraud
BANK OF AYUDHYA: Denial of Transfer of Non-Performing Assets
DUSIT RESORT: Parent Rescues Debt-Laden Resort & Polo Club
GENERAL FINANCE: SEC Probe Focuses on Auditor Peat Marwick
KRUNG THAI: Post-Merger Restructuring Predicted
PRANDA JEWELRY: To Consolidate & Sell Minority Interest

C H I N A   &   H O N G   K O N G

CHONGQING SPECIAL: China Daily Tells of One Turnaround Story
Chongqing Special Steel Works is a huge State-owned enterprise.
Back in 1992 when the steel market was brisk, the ambitious
managers of the firm started a 2.8 billion yuan (US$337 million)
expansion project outside of the old factory.  The managers,
buoyed by the bullish market at that time, planned to recover  
the investment in eight years. Engrossed by their prospects, they
concentrated all their efforts on the new project, paying little
attention to technical upgrading and management in the old

Then the brisk market became bleak.  By 1994, the steel market
was already a buyers' market.  But the top executives did not
want to turn back, not wishing to waste years of efforts.  They
decided to carry on, even though the firm was already losing  
money.  Secretly the top executives hoped that the tide of the
market would change and with the inauguration of the new project,
the inflow of investment would reduce the firm's debts.  To
sustain the support of the central government, the top executives
falsified accounts to present the firm as still profitable.  Most
workers were kept in the dark, assuming that their enterprise was
doing fine.

Meanwhile, the work in the old factory was a mess. There was no
accurate report of the use of gas, electricity and water, nor was
there an accurate account of the firms' spending.  Such disorders
undermined its economic performance. In 1997, its products only
accounted for 30 per cent of the market share around Chongqing,
down from the 70 per cent it had controlled in peak times only a
few years ago.   Its declining sales income could no longer cover
its maintenance costs.  In 1997, its steel output was 107,000
tons, 55,000 tons less than the previous year; the sales income
was 386 million yuan (US$46.5 million), compared with 1.25
billion yuan (US$151 million) in 1993.  For every 1,000 yuan
(US$120) of sales income, the production cost was as high as 845
yuan (US$100), compared with the 100 yuan (US$12) of other
special steel firms.

The fatal blow came after the first five consecutive months in
1997 when workers did not receive any payment.

In mid-June 1997, while carrying out a field inspection of the
expansion project, a top central government official questioned
again and again the firm's executives on how they could manage to
repay the bank loans.  The executives failed to convince the
senior official.  The project was grounded, leaving no way for
the executives to bypass the issue of debts.  By the end of 1997,
the operation of the steel works was suspended.   A thorough
examination by central ministries and the municipality found that
the steel firm had already lost 1.58 billion yuan (US$190

The State stepped in.  The options of bankruptcy and merger were
not considered because with 18,000 employees, the firm was too

After weighing all possibilities, the State Council decided to
help the firm reduce its losses first.  In March this year, two
top executives from Anshan Iron and Steel Plant in Northeast
China's Liaoning Province were appointed Party secretary and
general manager of the Chongqing steel firm.  The two brought
with them the management methods for which Anshan is famous.

The key to its methodology: Control production costs.  Production
costs, set below the market price, are to be shared by different  
workshops engaged in the process of steelmaking.  All workers and
managers have signed contracts to guarantee that they shall  
do their share to control costs or face punishment ranging from
slashed salaries to ultimate dismissal.  Initial results
indicated that these methods did work.  In April this year,  
the energy needed to produce one ton of steel equaled 684
kilograms of standard coal, against the 1,332 kilograms needed in
1997.  This alone can save over 100 million yuan (US$12 million)
a year for the firm.

By the end of June, the firm's losses were reduced by 156 million
yuan (US$18.8 million). The firm's orders for steel jumped from
February's 70,000 tons to July's 140,000 tons, sufficient to
launch the firm into full-capacity production.

To a certain extent, the determination and competence of the new
executives have revived the firm, just as the misjudgement and
dishonesty of their predecessors caused the firm's downfall.  Of
course, the State has also played an indispensable role in
changing the firm's destiny -- in deciding to stop the expansion
project, providing financial support to the firm in times of
trouble and assigning the right managers.  Contrary to popular
belief, that the State should stay out of an enterprise's
business in a market economy, it seems the government's
participation in some enterprises' management is still necessary,
at least for the time being in the State-owned sector.

It might still seem too risky to trust the fate of State-owned
enterprises, along with their enormous assets and staffs, to the
personal virtues of individual managers.  After all, it seems
that these managers themselves still have little to lose even if
their firms fail. It is hard to imagine that the steelworks'
former executives would have been as careless as they were if
they had owned the firm.  But once again, the State cannot be
directly involved in managing firms.  It has to choose someone
and send him or her in to run the enterprises.

Does the selection process look like just another case of taking
chances?  Will there be a more reliable solution?  Possibly there
are no simple answers in sight.  In a sense, the story of this
steel firm, like China's reform, is still an unfolding drama,
raising more questions than yielding answers.  But one thing is
certain -- more should be done to hold managers accountable
for their decisions and for making those decisions more
transparent to ordinary workers, who still do not have much say
in affairs that concern them more than anyone else.  (China Daily

CLIMAX INTERNATIONAL: Losses Continue through First Quarter
Climax International, a Hong Kong listed company, has posted a
loss for the year to 31st March.  In addition to the HK$128.7
million operating loss and HK$349.8 million in one-time
exceptional items, the company`s auditor made a HK$127.6 million
prior year adjustment of its 1997 results from a profit of
HK$52.6 million to a loss of HK$75 million. Simon Hsu, the new
chief executive officer, attributed the negative results to some
bad investments and over-expansion made by the previous
management, as well as provision taken by the new corporate team.
The company also blamed a computer bug for overvaluing the group'
stocks and work-in-progress by a staggering HK$88.4 million in
the 1997 financial year.   

HONKO INTERNATIONAL: Financial Situation Unstable
Honko International Holdings Limited disclosed that the banking
institutions which have been providing facilities to the Group
are currently in discussion with the Company with a view to
restructure the facilities available to the Group.  As at the
date of this announcement, the aggregate banking liabilities of
the Group is approximately HK$157 million.

The Company is still in discussion with its auditors regarding
the amounts of the Company's provision for the inventory,
doubtful debts for receivables for the year ended 31 March, 1998.
Having taken into account all information available to it, the
Board is of the view that in the event that a substantial
provision is to be made for inventory, doubtful debts for
receivables for the year ended 31 March, 1998, this may result in
a substantial loss to the Company for the year ended 31 March,
1998. It is expected that the results of the Company in further
details for the year ended 31 March, 1998 will be announced after
the Board meeting which is scheduled to be held on 27 August,
1998. However, it is impossible to quantify the Group's loss at
date of this announcement.

The Company advises that no agreement has been reached between
the Group and the relevant banking institutions at this stage and
the discussions may or may not result in the conclusion of an
agreement. An appropriate announcement will be made by the
Company in the event of any new development.

Provided that the negotiations can be successfully completed with
the bankers and finance companies to restructure the Group's
borrowing facilities and with potential investors for the
injection of new equity capital, the directors are satisfied that
the Group will be able to meet its financial obligations as they
fall due and the Company will continue to be a going concern, the
Company said.

LOGIC INTERNATIONAL: Cost-Cutting Program Yields Year-End Losses
Hong Kong furniture producer Logic International cut its losses
in the last financial year despite falling turnover resulting
from a cost-cutting program.  The loss for the year ending March
was HK$77 million, down from the previous year's HK$127.5 million
loss.  The company intends to continue focusing on its cost
efficiency program and strengthening its distribution network on
the mainland.  

                                               from 1/4/97
                                               to 31/3/98
    Turnover                                 : 294,428,652  
    Profit-Continuing Operations
        - Operating (Loss)                   : (79,745,270)
        - Exceptional Items                  : 6,699,859    
        - Discontinued Operations            : -            
    Total Operating (Loss)                   : (73,045,411)
    Share of Profit of an Associated Company : 21,096       
    (Loss) after Tax & MI                    : (76,955,803)

MANSION HOLDING: Settlement with 38 of 140 Creditors Reached
Mansion Holdings Limited announced that it has reached agreements
with certain of its trade and sundry creditors for the settlement
of the outstanding accounts payable to them in the total amount
of HK$20,468,665.27 as at 30th June, 1998.

Following completion of the bank compromise agreement between the
Company and its 24 banks on 29th July, 1998 as detailed in the
circular of the Company dated 29th June, 1998, the Company has
also successfully reached settlement terms with certain of its
trade and sundry creditors in respect of the amounts owed to them
in the sum of HK$20,468,665.27 (the "Settlement Amount").  The
effects of the Settlement can be summarised as follows:-

    A. Trade and sundry creditors:

       38 (the "Settlement Creditors") out of a total of 140
       suppliers and sundry creditors of the Group. The  
       Settlement Creditors are independent third parties not
       connected with the chief executive, directors or
       substantial shareholders of the Company or any of its
       subsidiaries or their respective associates.

    B. The Settlement Amount:

       HK$20,468,665.27, representing approximately 11.35% of the
       total accounts payable of the Group of HK$180,306,688.46
       as at 30th June, 1998.

    C. Settlement Consideration:

       In consideration for the settlement and release in full by
       the Settlement Creditors of the Settlement Amount, the
       Company will pay to the Settlement Creditors:

       1. HK$8,628,998.06 in cash, of which HK$6,973,357.66 has
          been paid by the Company as of 20th August, 1998;

       2. HK$6,064,401.11 by way of the issue of 43,944,938
          Shares (the "Settlement Shares") at HK$0.138 per Share
          (the "Issue Price"); and

       3. Upon receipt in full of the cash consideration and the
          Settlement Shares, the Settlement Creditors will waive
          the remaining outstanding balance of HK$5,775,266.10.

Shares are payable and issuable on or before 31st August, 1998.

The Settlement Shares represent approximately 2.5% of the  
existing issued share capital of the Company and approximately
1.6% of the issued share capital of the Company as enlarged by
the Settlement Shares and the 881,013,440 rights shares (the
"Rights Shares") to be issued by the Company pursuant to the
rights issue. The Settlement Shares will be issued pursuant to
the general mandate given to the directors of the Company (the
"Directors") at the extraordinary general meeting held on 18th
July, 1998.  Application will be made to The Stock Exchange of
Hong Kong Limited for the listing of, and permission to deal in,
the Settlement Shares.

The Issue Price represents a premium of 38% over the closing
price of the Shares of HK$0.10 on the date hereof. The Directors
believe that the Issue Price and the Settlement are in the
interests of the Company and its shareholders.  Approximately 42%
of the Settlement Amount will be satisfied by cash payment,
whilst 30% will be capitalised into long term equity and the
balance of 28% will be waived. On completion of the Settlement,
the working capital of the Group will therefore be improved. It
is expected that the Settlement will be completed on or before
31st August, 1998.

The Directors are in negotiation with the other suppliers and
sundry creditors for the settlement of their outstanding accounts
payable.  However, no formal agreement in this regard has been
reached at the moment.  The Company has undertaken not to and
each of the Directors has undertaken to procure the Company and
its subsidiaries not to issue any new shares (save for the Rights
Shares, the Settlement Shares and the shares to be issued upon
the conversion/exercise of the outstanding notes/bank
notes/warrants/options) for a 6 month period from 20th August,

RECOR HOLDINGS: Quarterly Results; Auditors Express Doubts
Recor Holdings Limited announced its earnings for the fourth
quarter ending March 31, 1998:

                                               from 1/4/97
                                               to 31/3/98
                                               ('000 $HK)
    Turnover/Interest Income                 : 112,595
    Profit-Continuing Operations
        - Operating Profit/(Loss)            : (27,496)
        - Exceptional Items                  : (9,423)
        - Discontinued Operations            : -       
    Total Operating Profit/(Loss)            : (36,919)
    Share of Profit/(Loss) of
      Associated Companies                   : -       
    Profit/(Loss) after Tax & MI             : (36,919)

Recor's auditors, in forming their opinion, have considered the
adequacy of the disclosures in the financial statements
concerning fundamental uncertainty relating to the going concern
basis in connection with the outcome of the current negotiations,
being conducted with the Group's bankers to obtain borrowing
facilities so as to enable the Group to meet in full its
financial obligations in full as they fall due for the
foreseeable future.

The auditors' report on the Group's financial statements for the
year ended 31 March 1998 contains a qualified opinion because
certain subsidiaries were excluded from consolidation and because
of the failure to disclose the post-acquisition results and
financial position of the unconsolidated subsidiaries in
accordance with the disclosure requirements of SSAP 7 and the
Hong Kong Companies Ordinance.

SAME TIME: Year-End Results Reflect Losses
Same Time Holdings, a Hong Kong listed company, announced its
year-end result as at March 31, 1998 which posted an operating
loss of HK$30 million and a net loss of HK$25 million:

    Same Time Holdings Limited announced on 20/8/98:
    (stock codes: Ord:451 & War:722)
    Year end date: 31/3/98
    Currency: HKD
                                               from 1/4/97
                                               to 31/3/98
    Turnover                                 : 413,997    
    Profit-Continuing Operations
        - Operating Profit/(Loss)            : (16,798)   
        - Exceptional Items                  : (13,231)   
        - Discontinued Operations            : -          
    Total Operating Profit/(Loss)            : (30,029)   
    Share of Profit/(Loss) of
      Associated Companies                   : -          
    Profit/(Loss) after Tax & MI             : (25,284)   

TAK WING: Sumitomo Sues on Bad Check; Creditors' Meeting Called
Tak Wing Investment (Holdings) faces court action over alleged
HK$20.4 million debt with Sumitomo Bank.  The company had failed
to pay the sum owed as an overdraft with the bank since August 4,
according to High Court writ.  Tak Wing suffered consolidated
losses of HK$326.35 million last year after taxation and minority

According to the South China Morning Post, construction company
Tak Wing Investment Holdings said an independent auditor's report
into its financial health will be completed and made public on
August 26.  It has also scheduled its meeting with its creditors
on the same day.

THAI-ASIA FUND: Deloitte & Management Disagree on Financials
Deloitte Touche Tohmatsu has modified its standard audit report,
dated 27 April 1998, on THE THAI-ASIA FUND LIMITED's accounts for
the year ended 31 December 1997 due to the fundamental
uncertainty relating to the valuation of the Company's
investments in Thailand which had a book value of US$6,705,355 as
at 31 December 1997.  The directors consider that, at this time,
adequate provision had been made for investments.  The auditors
are of the view that Thailand has been experiencing severe
economic difficulties, and, accordingly, the valuation of
investments is dependent to a large extent on the efficacy of the
fiscal and other measures implemented to restore economic
stability.  The ultimate outcome of the uncertainties in Thailand
and resulting impact on the valuation of the Company's
investments cannot presently be determined.  Accordingly, the
financial statements do not include any adjustments that might
result from these uncertainties.  However, the auditors consider
that appropriate estimates and disclosures have been made in the
financial statements and their opinion is not qualified in this
or in any other respect.

THEME INTERNATIONAL: SEHK Says Disclosure was Inadequate
Theme International Holdings, a Hong Kong listed retailer, will
be claimed by the stock exchange for its failure to disclose
about HK$10 million in connected transactions.  The firm breached
listing rules by not making public the transactions with
Singapore based retailing company Emporium Holdings during the
seven months to June 19.  The transaction involve Theme selling
garments to Emporium and settling Emporium's claims such as
travelling expenses and consultant fees.  Emporium is under
bankruptcy protection, is 55.72% owned by Theme.  Under the
listing rule, the transactions are defined as connected and must
be disclosed.  Theme is seeking to restructure HK$216 million in
debts with 18 bank creditors.


PT CITRA MARGA: Risks Defaults on US$300 Million of Bonds
PT Citra Marga Nusaphala Persada, a toll road company controlled
by the eldest daughter of former Indonesian president Suharto, is
close to defaulting on a US$125 million eurobond, Standard &
Poor's said last week.  Citra Marga paid US$900,000 of a US$4.5
million payment on the bond due on Thursday and the issue will be
declared in default if the balance isn't paid by the end of
Tuesday, S&P said.  The company intends to pay the balance due
within the next two weeks, S&P said.

In addition to the eurobond, Citra Marga missed a US$6.3 million
payment on a separate US$175 million bond in June, and is in
danger of defaulting on that issue too.  S&P said the company
paid interest on that debt earlier this month, adding that the
company's "ability to make the full payment of US$175 million
when it falls due in December 1998 is now extremely unlikely".
The US$125 million eurobond comes due in 2002.

Both bonds were sold through the now-defunct Hongkong investment
bank Peregrine Investments Holdings.  

Citra Marga's revenue is generated in rupiah and the government
controls the tariffs on its toll roads, making it difficult to
raise prices.  The 80 per cent fall of the rupiah against the US
dollar in the past year has left it scrambling to meet its dollar
obligations.  The company said in June it had about 1.3 trillion
rupiah in cash.  (The Business Times & Bloomberg 22-Aug-1998)

J A P A N  

CHUGAI MINING: Shares Fall on LTCB Restructuring News
Shares in Chugai Mining Co. (1491 JP) fell 7 yen in trading
Monday to 32 yen amid concerns that the company will be hurt by a
planned restructuring by Long-Term Credit Bank of Japan Ltd.,
since a non-bank affiliate of LTCB, which owns 8.6 percent of
Chugai, may have to sell off its shares following the
restructuring, analysts said.  (Bloomberg, L.P. 24-Aug-1998)

LONG TERM: Additional Details About Restructuring Plan Surface
The bailout of Long-Term Credit Bank of Japan has disappointed
many investors who have called on Tokyo to close the weakest
banks rather than pump cash into them.  By keeping them alive,
critics say, the government risks exacerbating the over-capacity
that has made banking such a low-margin business in Japan.

"This is a stop-gap, ad hoc measure, which is not very promising
if it's the blueprint for how they're going to handle troubled
banks in the future," Salomon Smith Barney (Japan) analyst Alicia
Ogawa told the South China Morning Post in a weekend interview.  

                 Fate of New York & U.S. Branches

"We have no plan now to close the New York branch because that is
essential business," Long Term Credit Bank of Japan spokesman
Murakami Ichiro in Tokyo told staff reporters for the Chicago
Sun-Times and Bloomberg News.  But, Ichiro added, "Organization-
related issues are under discussion" between LTCB and Sumitomo.  
LTCB reportedly has 160 employees in New York and 43 others in
offices located in Chicago, Atlanta and Dallas.  About 25
employees of that total are executives sent over from Japan,
according to the Sun-Times.  Bank representatives would not offer
comment to the Sun-Times on specific plans for employees in the
United States.  

                          Sumitomo Speaks

Sumitomo Trust and Banking conkfirmed over the weekend that it
would go ahead with a merger transaction but only after a foreign
accounting firm has gone over LTCB's books, according to
Yoshinobu Yamada, banking sector analyst for Merrill Lynch

"We have not yet actually received a formal notification of the  
restructuring plan from LTCB," Sumitomo spokesman Haruhiko
Hashimoto told a reporter for the South China Morning Post.  Mr
Hashimoto said, despite widespread leaks in the Japanese press
about the details of LTCB's plans, the government, LTCB and
Sumitomo had still not worked out the final version of what would
be done with LTCB.  Many crucial details, including the fate of
shareholders' equity in LTCB, an announcement of the true state
of its bad debts, and the actual conditions for the use of
government funds, all remain unsettled, according to the Post.

Many ruling Liberal Democratic Party politicians went on the
record since Friday's announcement saying they would oppose an ad
hoc solution to LTCB's crisis and would prefer to come up with a
solution that could be used as a model to apply to future bank

                  Additional Financial Tidbits

    1.  Mr Yamada at Merrill Lynch estimated in an interview with
the South China Morning Post that LTCB would also sell about 2.5
trillion yen worth of assets to the Co-operative Credit Purchase

    2.  LTCB's disposal of loan credits to the three non-bank
affiliates are, according to a Monday release by Tokyo Wire:

            * Japan Leasing (250 billion yen),
            * Nippon Randic (100 billion yen) and
            * NED (110 billion yen)

    3.  Officials at the Bank of Japan indicated to reporters
that LTCB would soon receive an injection of about 500 billion to
800 billion yen worth of public money.

    4.  Long-Term Credit Bank of Japan Ltd. (8303 JP) shares fell
14 yen to 60 in trading Monday, reflecting disappointment with
the government's handling of the banking crisis, according to
Bloomberg News.

Nakamura Securities Co, an unlisted brokerage firm in Okayama,
capitalized at 100 million yen was declared bankrupt by the
Okayama District Court . The Compensation Fund for Safekeeping
Securities said it would provide money from the fund set up to
return clients`assets in case of a brokerage collapse.

OKURA & CO: Liquidator Looking for Food & Aerospace Buyers
Buyers are being sought for the food, aerospace and other
competitive divisions of Okura & Co. (8054) which filed for
bankruptcy on Friday, according to a report in yesterday's
edition of The Nihon Keizai Shimbun.  The liquidator, the
newspaper reported, has already received approval from Tokyo
District Court to sell off the divisions and has started
negotiations with interested companies. The move is aimed at
making it easier for Okura's employees to find new jobs and
increasing repayments to creditors.

The Nihon Keizai Shimbun relates that Okura's food division has
performed well thanks to its strength in importing raw materials
for beer, wine and whiskey. The food division posted about 20
billion yen in sales for the year ended March.  Likewise, Okura's
aerospace division is also healthy. The company has expanded the
aerospace business by working as an agent of aircraft makers of
the U.S. and Europe. The company has shipped aircraft to the
Defense Agency, the Ministry of Transport and Kawasaki Heavy
Industries Ltd. (7012). The aerospace division marked some 35
billion yen in sales for the year ended March.

As previously reported, Okura, a midsize trading house, filed for
bankruptcy at Tokyo District Court on Friday, claiming total
liabilities of 257.7 billion yen. Okura has seen the profit
margins of its machinery and steel trading decline. Reports in
English-language news published over the weekend said, without
further explanation, that Okura's debts "include guarantees of
43.4 billion yen and non-performing assets of 98 billion yen."

According to Bloomberg News, shares in companies linked to Okura
fell in trading Monday on continued concern about the impact of
the bankruptcy of Okura & Co. (8054 JP):

   * Taisei Corp. (1801 JP), a Tokyo-based trading company which
     is part of the Fuyo group and holds a 4.8% stake in Okura,
     fell 17 yen to 256;
   * Fuji Bank Ltd. (8317 JP) declined 26 yen to 442;
   * Chiyoda Fire & Marine Insurance Co. (8758 JP) shed 15 yen
     to 500;
   * Yasuda Trust & Banking Co. (8404 JP) fell 10 yen to 91;
   * Japan Radio Co. (6751 JP) fell 50 yen to 548;
   * Tokai Pulp & Paper Co. (3706 JP) fell 24 yen to 330.


DAEWOO GROUP: Daewoo Cars Roll into Florida Port
South Korea's Daewoo Motor Co. is delivering its first cars to
the southeast part of the United States.  The cars are rolling
off an ocean-crossing freighter today at the port in
Jacksonville, Fla.  Last month Daewoo unloaded its first cars for
the U.S. market at ports in Los Angeles and New Jersey.  Cars
shipped to Jacksonville will be sold by Florida dealers in
Orlando, St. Petersburg and Fort Lauderdale, as well as in  
showrooms in Atlanta and other Southeast cities.  Daewoo makes
three models for the U.S. market -- the Leganza, Nubira and
Lanos.  (UPI 21-Aug-1998)

DONG AH: Debt Payments to Be Frozen to 2002
The Korea Times reported that under a special workout procedure
with its creditors, 4.5 trillion won of the Dong Ah Construction
Industry Company's debt payments will be frozen until the first
half of 2002.  Under the program, Dong Ah will benefit from prime
interest rates on its deferred debts.  Additionally, 80 billion
won in credit loans will be converted into equity, giving its
creditors a 35 percent share in the company.  The conditions of
this deal included a commitment that most of Dong Ah's other
subsidiaries will be either disposed of or otherwise

The workout procedure is aimed at helping firms hit by temporary
liquidity shortages to regain financial health and
competitiveness through debt relief and creditor offered
restructuring programs.  It is also hoped to reduce banks' non-
performing loans by improving borrowers' debt payment
capabilities.  However, the workout can also result in the
shareholders being asked to reduce capital and the disposal of
unprofitable assets and subsidiaries.  Furthermore, there is a
compulsory shake-up of the top management of the "workout

A report by Reuters appearing in the Hong Kong Standard, said,
based on news appearing in the Hankook Ilbo newspaper over the
weekend, that Dong Ah creditors are ready to roll over loans to
the company.  It's reported that creditors would lower interest
rates on existing loans to prime rate and convert 80 billion won
of their loans to equity in the company.  The debt rescheduling
plan was said to be put into force immediately after approval
from a meeting of the creditors next week.  

Dong Ah's financial trouble are attributed to unsold residential
and commercial units in the face of a slumping economy.  Creditor
banks announced in May that they would provide 600 billion won
in emergency loans and former Dong Ah chairman Choi Won Suk
resigned in the same month as a condition of the loan package.
All of Dong Ah's 36 sister firms are expected to be sold off,
liquidated or merged into Dong Ah.

DONGBANG SECURITIES: FSC Orders Revival Plan by September 19
The Korea Times reports that the Financial Supervisory Commission
has ordered brokerage house Dongbang Peregrine Securities to
submit its recapitalization plan by September 19.  

Dongbang's operating capital ratio is reported to be minus 73.9
percent.  Dongbang must submit its rehabilitation plans outlining
how it plans to meet a 150 percent capital adequacy requirement
and a 100 percent asset to debt ratio.  The FSC will then decide
whether or not to approve the plan.  If the FSC does not approve
the plan, the brokerage house will reportedly be suspended and
ultimately liquidated.

The Korea Times also reports that the FSC has barred Dongbang
Peregrine Securities from purchasing new foreign currency
securities and from investing in offshore funds and derivative
trades in order to prevent additional debt exposure.

HALLA GROUP: Good News Flows from Bowater-Halla Transaction
While the majority of businesses in the country are having to
instiute pay cuts and layoffs, employees at one firm are enjoying
a raise in their salaries and bonuses, according to a report in
Monday's edition of the ChosunIlbo.  Arthur Fuller, president of
Bowater Co. of the United States announced Monday raises in
salaries and the bonuses for employees of Bowater-Halla Paper
Corp.  The company was established only last month when Bowater
acquired the ailing Halla Pulp and Paper Corp., which was on the
point of bankruptcy last December.  In addition to reducing
salaries by 15% and eliminating bonuses, Halla Pulp and Paper had
been behind on paying salaries to its staff, a situation which
quickly changed once Bowater stepped in. Salaries have been
increased to the levels they were at last year, when the company
was in normal operation and bonuses were set at the 780% per

Additionally, a 460 billion won loan made by Halla, the parent
corporation, has been paid off completely, and without a debt to
service, the plant is now turning a profit. Bowater also retained
all 286 employees, including management, who had been working at
Halla Paper at the time of acquisition.  If the company continues
to be profitable, Fuller has promised to provide an standard
American-style welfare package to all employees.

HYUNDAI MOTORS: 36-Day Strike Draws to a Close
Management and union officials of strike-bound Hyundai Motor Co.
reached a compromise today to end a 36-day labor dispute at
South Korea's largest automaker.  The compromise allowing "a
minimum level of layoffs" came in government-mediated
negotiations carried out over the past week, according to press
reports.  A breakthrough, the Associated Press reports, came when
both sides agreed on terms of the layoffs in overnight talks.
Labor Minister Lee Ki-ho, who led the last-minute mediations,  
praised the compromise, calling it "a great victory achieved
through dialogue and concessions."  Hyundai's 26,000-strong union
walked off their jobs July 20 in protest of the company's plan to
lay off 1,538 workers.

The ChosunIlbo reports that instead of the original 1,538 planned
layoffs Hyundai reduced this number drastically to 277.  In
return, the ChosunIlbo reports, the union dropped its position
that it had to be consulted over the layoffs and that the company
had to rehire layed off workers if the situation allowed. The
company promised that layoffs would be fair and reasonable and
would make active efforts to rehire people through its
subsidiaries.  Those being layed off will get preferential
treatment within two years regarding new employment

Layed off workers will receive forty five days pay plus seven
months salary for less than five years work, eight months for
five to ten years work and nine months for more than ten years.

Hyundai promised not to press charges concerning property damage
against union members, if workers resume normal operations and
increase productivity. Any other activities were up to legal
authorities, though the company agreed to support those charged.

Workers who sought early retirement will receive a six month
training course for new employment, after one year. The union and
the company will do their best to ensure health care, training
and job introduction.  Hyundai agreed to no more layoffs for two
years and will seek to involve the union in management decisions
to avoid more disputes.

The Federation of Korean Employers expressed disappointment
Monday, saying that the forced settlement of the Hyundai dispute
has set a precedent which encourages labor unions to resort to
illegal strikes to block lawful layoffs, and added that it has
negatively impacted the credibility of the country overseas. Even
last Friday, the five organizations represented by the Korean
management/employer group registered their opposition to the
government's involvement in the labor dispute, pointing out that
lay-offs had already been legalized by the administration.

As public corporations, the ChosunIlbo said in a separate report,
business conglomerates and financial institutions are due to
enter the formal stage of restructuring beginning in September,
massive lay-offs and forced retirements are expected in the next
two months, economic analysts said Sunday.  They estimated that
the number of jobs to be cut will reach 300,000 in September and
October, and that this will seriously threaten social stability
and cause labor unrest. In a countermeasure, the government plans
to limit the number of the jobless to 1.5 million, the level at
the end of July, by creating jobs through a supplementary budget,
but many commentators believe that this limit will be impossible
to maintain, the ChosunIlbo said.

KOREA LONG: FSC Orders Revival Plan by September 19
The Korea Times reports that the Financial Supervisory Commission
has ordered brokerage house Korea Long Term Credit Bank
Securities to submit its recapitalization plan by September 19.  

KLB's operating capital ratio is reported to be minus 4.8
percent.  KLB must submit its rehabilitation plans outlining how
it plans to meet a 150 percent capital adequacy requirement and a
100 percent asset to debt ratio.  The FSC will then decide
whether or not to approve the plan.  If the FSC does not approve
the plan, the brokerage house will reportedly be suspended and
ultimately liquidated.

SK SECURITIES: FSC Orders Revival Plan by September 19
The Korea Times reports that the Financial Supervisory Commission
has ordered brokerage house SK Securities to submit its
recapitalization plan by September 19.  

SK's operating capital ratio is reported to be minus 62.7
percent.  SK must submit its rehabilitation plans outlining how
it plans to meet a 150 percent capital adequacy requirement and a
100 percent asset to debt ratio.  The FSC will then decide
whether or not to approve the plan.  If the FSC does not approve
the plan, the brokerage house will reportedly be suspended and
ultimately liquidated.

The Korea Times also reports that the FSC has barred SK from
purchasing new foreign currency securities and from investing in
offshore funds and derivative trades in order to prevent
additional debt exposure.

SSANGYONG INVESTMENT: FSC Orders Revival Plan by September 19
The Korea Times reports that the Financial Supervisory Commission
has ordered brokerage house Ssangyong Investment & Securities to
submit its recapitalization plan by September 19.  

The Korea Times earlier reported that Ssangyong Investment &
Securities originally exceeded FSC requirements, but the
company's recapitalization through the issuance of subordinate
bonds was viewed as improper.  Ssangyong Investment's capital
ratio was later readjusted downward to the minus 103.6 level.
Now, Ssangyong must submit its rehabilitation plans outlining how
it plans to meet a 150 percent capital adequacy requirement and a
100 percent asset to debt ratio.  The FSC will then decide
whether or not to approve the plan.  If the FSC does not approve
the plan, the brokerage house will reportedly be suspended and
ultimately liquidated.

The Korea Times also reports that the FSC has barred Ssangyong
from purchasing new foreign currency securities and from
investing in offshore funds and derivative trades in order to
prevent additional debt exposure.


FERRY MASTER: Winding-Up Petition
Deimas-Lines (M) Sdn. Bhd. had on 5.5.1998 presented a winding up
petition against Ferry Master Sdn. Bhd.  The petition is directed
to be heard on 28.8.1998.

FIVEWAY STEEL: Winding-Up Petition
Syarikat Ampang Steel Sdn. Bhd. had on 20.5.1998 presented a
winding up petition against Fiveway Steel Sdn. Bhd.  The petition
is directed to be heard on 23.9.1998.

Interfield Sendirian Berhad had on 11.8.1998 presented a winding
up petition against Konsortium Lapangan Terbang Sdn. Bhd.  The
petition is directed to be heard on 13.1.1999.

MAROYO SDN.: Winding-Up Order Entered
Winding up order had been made against Maroyo Sdn. Bhd. on
17.7.1998 on the petition of Perusahaan Peridi Sdn. Bhd.

MODERN HEALTH: Members' Voluntary Winding-Up
A special resolution passed at an EGM held on 20.8.1998 had
resolved that MODERN HEALTH CARE PRODUCTS SDN. BHD. be wound up
voluntarily.  Creditors of the company are to submit their
claims/debts before 21.9.1998.

MODERN POCELAIN: Members' Voluntary Winding-Up
A special resolution passed at an EGM held on 20.8.1998 had
resolved that MODERN POCELAIN SDN. BHD. be wound up voluntarily.  
Creditors are to submit their claims/debts before 21.9.1998.

PACIFIC CONTAINER: Members' Voluntary Winding-Up
The members of Pacific Container & Godown (M) Sdn Bhd on 18/8/98
resolved to wind-up the company voluntarily.  Creditors are
requested to submit their claims before 24/9/98.

SUPPERFLEX SDN: Winding-up Petition
Industrial Resins (M) Bhd on 4/6/98 petitioned for the winding-up
of Supperflex Sdn Bhd.  The petition is directed to be heard on

UDS INDUSTRIES: Winding-up Petition
Inter-Pacific Securities Sdn Bhd on 15/7/98 petitioned for the
winding-up of UDS Industries Sdn Bhd.  The petition is directed
to be heard on 25/11/98.


ORIENT BANK: Will Reopen with New Owners Paying US$75 Million
The much-awaited reopening of Orient Commercial Bank (Orient
Bank) became a certainty last week after beleaguered businessman
Jose Go and his partners finally sold out their controlling stake
in the bank to a new investor group for US$75 million, according
the The Manila Times.  Bangko Sentral ng Pilipinas (BSP) deputy
governor Alberto Reyes told reporters the yet unnamed new owners
of Orient Bank have already deposited in a local bank their
purchase price for the bank's controlling stock.

Go's divestment came roughly three years after his group saved
the bank from impending closure by acquiring its controlling
stock; and six months after cash flow problems forced him in turn
to temporarily close Orient Bank's operation.  At the time of its
closure, Orient Bank had P2.4 billion in deposits, and P2.3
billion in advances from the BSP.  Its closure would force state-
owned Philippine Deposit Insurance Corp. to shoulder at least P1
billion in insured deposits.

Reyes, however, said Orient Bank cannot reopen immediately,
because Go and the new owners have yet to iron out kinks related
to Go's divestment.  But Reyes stressed the new owners have
already brought in their money.  "The money represents payment
for the shares of Mr. Go in Orient Bank," he said. Go's group
owns more than 90 percent of the bank, but Reyes did not say if
the new majority owners acquired the entire stake of Go's group.

Reyes said the only stumbling block revolved around the issue of
finalizing the deal's reinsurance requirement.  As explained by
Reyes to the Times, the new owners want a surety bond that would
assure them that Go's group indeed has a stake in the bank,
equivalent to their purchase money.

ROYAL PACIFIC: SEC Investigates Unlicensed Golf Share Sales
Golf course operator Royal Pacific Golf Club Chain, Inc., an
affiliate of real estate firm Sta. Lucia Realty & Development,
Inc., is facing administrative fines from the Securities and
Exchange Commission (SEC) for selling golf shares to the public
without a license from the commission, according to a report
appearing in Business World. An SEC investigative team has
recommended to the SEC en banc, the commission's highest
decision-making body, to slap penalties against the golf club
operator for the alleged violations, BW said.  

The SEC said Sta. Lucia is Royal Pacific's "main stockholder."
Under the Revised Securities Act (RSA), BW explained, companies
selling securities like golf shares should first secure permits
from the SEC. Under the marketing scheme it designed for the
project, golf club shares would entitle the holder to use the
facilities of Pinewoods Golf and Country Estates in Baguio and
Tuba, Benguet. Sta. Lucia developed the golf club.

According to The Manila Times, the SEC said Royal Pacific sold
fairway lots entitling the buyer to a club share for the golf
course through its marketing agent, Royale Homes Marketing Corp.
Fairway lots are parcels of land within the golf course which
carried a corresponding golf club share.  

The SEC said 22 shares were sold to 16 individuals.  The names of
the buyers were held confidential and the proceeds could not be
determined from SEC report, the Times noted.  The price of a gold
share is P800,000.

SAN MIGUEL: Nestle Sale Stuns Portfolio Managers
The divestment by San Miguel Corp. of its 45 percent stake in
Nestle-Philippines Inc., a joint venture with Swiss giant Nestle
S.A., has puzzled New York-based fund manager Leopoldo Clemente,
president and chief investment officer of Clemente Capital Inc.,
the investment management company which runs the First Philippine

"I'm a little bit puzzled. This goes beyond paying off their
debts,'' Bloomberg News quoted Clemente commenting on the deal.
"Selling Coke would have paid that off."

A local Philippine fund manager is just as perplexed as Clemente.
"I thought food and beverage was their core business, so I don't
understand the Nestle sale," said Vincent Lazatin, fund manager
of the GSIS Mutual Fund, which has P850 million of assets.  "It
seems instead of holding on to their crown jewels, they're
letting them go."

San Miguel approved last Friday the sale of its 45 percent
remaining stake in Nestle-Philippines to Nestle SA for a total
package worth $700 million, finally ending 38 years of
partnership with the world's largest food company.  The sale,  
which involves a total cash package of P29.2 billion (US$695
million at P42 to a dollar) creates a huge warchest for San
Miguel, which raised $554 million last month with the sale of its
25 percent stake in Coca Cola Beverages Ltd.  San Miguel is
expected to book at least a P30 billion windfall this year from
both transactions.

"There is also talk that with these proceeds, they may use this
war chest to buy certain assets in the Philippines that have been
depressed," Clemente said.  San Miguel may use money from the
Nestle sale to buy its leading competitor, Asia Brewery Inc., so
that it can dominate the Philippine beer industry, Clemente said.
"Asia Brewery and San Miguel might merge, but that's speculation
on my part," Clemente said.  

First Philippine Fund, according to a Manila Times report, holds
7.6 million shares of San Miguel.

Clemente's speculation is shared by a prominent business-man and
a retired senior official of the country's oldest and largest
brewing company, according to the Times.

"It depends on what the overall corporate objectives are but this
certainly goes far and above having to settle current
liabilities," the former San Miguel official told the Times.  The
former San Miguel official said the CCB sale is sufficient to
improve and strengthen San Miguel's finances and profitability
which has suffered due to the company's heavy debt burden which
currently stands at P45 billion, the Times said.  "The question
management has to answer is what is its gameplan because it is
now abundant in cash," the Times' source said.  "Are they going
to keep this in cash and dollars?  What do they say about
international operations?"

Local analysts surveyed by The Manila Times say that the sale of
the Nestle stake could be another lost jewel for the firm.

   * "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," said
     Jeanette Yu-Tan, analyst at Securities 2000.

   * Julie Villena, analyst at Magnum International Securities,
     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."

   * "I think it is a good move, definitely it will improve
     their cash position... It's more like a win-win situation,"
     said Cilette Liboro, research head of Orion-Squire Capital.

San Miguel chief finance officer Delfin Gonzalez Jr. told a press
briefing that a fifth of the company's P45 billion debt will be
retired within the next 18 months as they fall due.  Some of the
proceeds will cover the funding requirements of ongoing
operations as well as the expansion of its core businesses.  San
Miguel officials said the rest of the proceeds from both sale
will be kept in cash to earn interest that can offset the
company's interest expenses.  The amount to be kept in cash is
also intended to give the company flexibility to make future
acquisitions, according to San Miguel president and chief
operating officer Francisco Eizmendi Jr.  "We are also building a
warchest that can be tapped for new business opportunities that
may come our way," Eizmendi said.  "There is an idea of possible
areas that we may want but we are not at liberty to discuss

SIME DARBY: Parent Offers to Buy Minority Shares Before Delisting
SD FAR East Ltd. has offered to buy out all minority stockholders
of Sime Darby Pilipinas Inc. in preparation for the eventual
delisting of the local tire maker from the Philippine Stock
Exchange.  In a disclosure filed with the Securities and Exchange
Commission, as reported in The Manila Times, SD Far East, which
owns 75.9 percent of Sime Darby, said the offer is intended to
protect market investors when its shares are finally delisted
after the completion of the offer.

The tender offer starts on Sept. 28 and ends on Oct. 16 unless
extended by SD Far East.  SD Far East has proposed to purchase
the shares of other SDPI shareholders at P30 per share, which is
144.89 percent over market price.  SDPI shares were last traded
at P12.25 per share on Aug. 19, 1998, according to the Times.

The voluntary delisting of SDPI shares will take effect
immediately after the completion of the tender offer.  SDPI has
already requested suspension of trading of its shares effective
Aug. 31, the Times said, and the PSE has confirmed that trading
halt will be implemented.

Sources told the Times that the tender offer is also being made
to finally put an end to the ongoing dispute between management
and minority shareholder Leonardo Alejan-drino over the company's
P1 billion investment in Lec Refrigeration PLC.  The corporate
dispute which is being litigated at the SEC, will be over once
Alejandrino avails of the tender offer.  LEC Refrigeration is a
company based in the United Kingdom involved in the sale of
refrigeration and associated products for domestic use.   
Alejandrino has filed a suit at the SEC opposing the investment,
saying it is illegal. The investment, he said, would result in
the capital flight of substantially all of the assets of SDPI to
Lec Refrigeration in order to prop up one of its losing invest-

SD Far East said the purpose of the tender offer is to provide
the stockholders with an opportunity to sell their shares at a
price higher than the current market price before the shares are
delisted.  The company has sought approval of the PSE to
voluntarily delist its shares from the exchange in view of the
sluggish stock market, the Times noted, and SD Far East does not
see any benefit in maintaining the listing of SDPI in view of the
current market conditions both in the Philippines and the rest of
Asia which are not likely to improve in the near future.  SD Far
East said SDPI could otherwise conserve funds and manpower time
associated with the continued listing such as maintenance fees
and costs and reporting and disclosure requirements.


AMCOL HOLDINGS: Ex-Directors Guilty of Failing in Duties
Amcol Holdings' three former directors -- Robin Kang Thian Leng,
Chng Heng Tiu and Johnny Kesuma -- were found guilty last week of
failing in their duty as directors.  Both Kang and Chng were
fined by District Judge Koh Juat Jong for failing to exercise
reasonable diligence.  Kang, 32, was fined $4,000 on one charge,
while 64-year-old Chng was fined a total of $12,000 on three
charges. Kesuma, 43, was found guilty of failing to act honestly
and slapped with a $5,000 fine.  All three were acquitted of the
remaining seven charges they faced in total, several of which
were amended by the judge last week.  

They had faced a maximum sentence of $5,000 or imprisonment
not exceeding one year for each of the charges brought under the
Companies Act, reports in The Business Times and The Straits
Times explained over the weekend in reporting the Court's

The judge ordered that Kang and Chng did not have to pay any
costs.  The defense argued that the prosecution had failed in its
original case of claiming that they failed to act honestly as
company directors and that the 72-day trial was a "waste of time
and public money".  Kesuma, however, was ordered to pay
$12,500 -- 5 per cent of the $250,000 in costs submitted by the
prosecution.  Despite the convictions, none of them were
disqualified from company directorships.

The case revolved around a loan agreement and three remittances
of US$4 million (S$7 million), US$1 million and US$2 million made
to Amcol's Indonesian joint venture PT Amcol Graha in July and
September 1994, purportedly as advances for the Indostar
satellite project.  The remittances were made despite an
executive committee decision that funds be committed only after
Amcol Graha conducted a feasibility study and provided legal
documentation for its participation, the Commercial Affairs
Department alleged.

Kang's lawyer, Tan Chee Meng, argued that his client had acted
out of a sense of "over-zealousness" in wanting to secure the
Indostar project rather than dishonesty. Senior Counsel Davinder
Singh argued that his client Chng remained an honest individual
and had pleaded not guilty to the dishonesty charge.


ALPHATEC ELECTRONICS: Alphatec Sues KPMG Charging Fraud
Alphatec Electronics Plc on Friday filed a civil lawsuit against
KPMG Peat Marwick Suthee Ltd, Alphatec's former auditor, charging
that the latter through fraudulent auditing practices had caused
the firm to lose Bt18.8 billion. In the lawsuit, reported by The
Nation, Price Waterhouse which is drawing a restructuring plan
for the electronics company, also charged Peat Marwick Suthee
Ltd, KPMG International Inc, Supot Singhasaneh, Phayom
Singhasaneh, Nareenut Makevichai, Nirand Leelamathawat and
Sanguan Phongwant of breaching contracts.

Ever since finance companies were shut down without warnings from
their auditors, auditing standards have been openly criticised.
It is the first time, in Thai history, that an auditing firm has
been charged by its client, The Nation reported.  

In the lawsuit, Price Waterhouse said that Charn Asvachoke,
Alphatec's chief executive officer, hired the defendants as
auditors because of their fame and expertise.  The defendants had
started auditing Alphatec's financial statements from 1993 until
the first quarter of 1997, which commended the firm's good
performance.  "It also used the audited financial statements to
the company's directors, shareholders and creditors as a proof
that the company was performing well.  It is clear that there
were wrongdoings because in 1997, the company experienced a
sudden liquidity problem which is unlikely given the huge net
profits shown in previous financial statements," Price Waterhouse
said in the lawsuit, according to The Nation.  It noted that
after finding auditors, Alphatec found its total assets and net
profits different from those stated in the financial statements
audited by the defendants.

Alphatec also said, according to The Nation, that from July 1994
to July 1997, Charn and associates had transferred Bt3.95 billion
to other companies without approval from the firm's directors and
shareholders. Charn and his associates also withdrew Bt11 billion
for personal benefits, it said.  "They had the opportunity to do
that because the eight defendants did not do their job honestly
and strictly. The company paid dividends to shareholders even
though it had incurred no profit," it concluded.

BANK OF AYUDHYA: Denial of Transfer of Non-Performing Assets
Making reference to a news article appearing in the "Thai Post"
daily on August 24, 1998, reporting that Bank of Ayudhya Public
Company Limited (SET:BAY) is transfering non-performing assets to
Ayudhya Investment and Trust Public Company Limited (SET:AITCO),
AITCO said in a statement to the Stock Exchange of Thailand
yesterday that it "categorically denies such news."

DUSIT RESORT: Parent Rescues Debt-Laden Resort & Polo Club
Dusit Thani Plc (DTC) has taken over debt-ridden Dusit Resort &
Polo Club from its subsidiary Dusit Resort Cha-am Co Ltd
as part of the group's financial restructuring.  Under the deal,
described in a report appearing in The Nation, Dusit Resort Cha-
am will transfer all assets and liabilities of Dusit Resort &
Polo Club to its parent Dusit Thani, which will consequently
absorb Bt460 million loss.  A Dusit Thani executive said that the
restructuring would help lower Dusit Thani's tax burden for the
second half of this year and could improve future cashflow.

Under the plan, The Nation explained, DTC will buy assets and
liabilities of Dusit Resort & Polo Club for Bt410 million.  Dusit
Resort & Polo Club's management will still existing and manage
DTC's office in Rayong.  Despite the purchase at discount value,
The Nation said, DTC will have a higher loss burden due to the
huge debts of Dusit Resort & Polo Club.

Last March, The Nation recalled, DTC started its restructuring
process by selling its 25 per cent stake in DTC to Goldman Sachs.
It also sold Kempinsky Hotels for Bt1.11 billion, gaining a Bt7
million profit from the transaction.  In the first half of 1998,
DTC recorded a profit of Bt516 million compared to Bt35 million
in the same period of a year ago.

GENERAL FINANCE: SEC Probe Focuses on Auditor Peat Marwick
The Securities and Exchange Commission says it will investigate
Peat Marwick Suthee for possible wrongdoing in past audits of
now-closed General Finance, according to a report in the Bangkok
Post.  Pakorn Malakul na Ayudhya, the commission's secretary-
general, said last week that regulators were investigating
possible auditor negligence or offences by auditors, management
and directors of all listed financial institutions ordered closed
last year.  Twenty-six of the 58 finance and securities companies
ordered closed in December were listed on the Stock Exchange of
Thailand, the Post reports.

A committee representing the Bank of Thailand, the commission and
the Financial Sector Restructuring Authority is handling the
inquiry, the Post says.  Mr Pakorn stressed that no conclusion
had yet been reached about whether Peat Marwick was culpable in
any auditing mistakes for General Finance.  Peat Marwick has come
under fire in the past, the Post noted, for alleged auditing
irregularities at Alphatec Electronics, Unicord and Somprasong
Land which were "star" companies in the stock market.  The three
eventually went belly up, leaving behind a mountain of debts
for their creditors.  Some of their top executives are living
abroad on proceeds allegedly stolen from their bankrupt

Last week, the Bank of Thailand asked the police to begin
criminal investigations of former commerce minister Narongchai
Akrasanee and five other former executives of General Finance for
alleged illegal lending practices.  Charges centre around loans
of 338 million baht approved by the six executives but backed by
insufficient collateral.  The loans were not reviewed adequately
by the company, an alleged violation of central bank regulations.  
The central bank and the Finance Ministry said they were prepared
to prosecute any illegal acts by former executives of failed
banks and finance companies. The central bank is expected to
announce new charges against other executives of failed
institutions this week.

Earlier this month, the Post recalled, the commission punished
two auditors for violations in the audit of two of the failed
finance companies.  

   * Toemsakdi Krishnamra, senior partner of Deloitte Touche
     Tohmatsu Jaiyos, failed to properly examine loans to related
     companies in an audit of Finance One for 1996.  

   * Sangah Sriariyametta, of SGV-Na Thalang, was held to have
     violated accounting principles in the audit of Thai
     Financial Trust at the end of 1996.

The commission suspended both executives from auditing listed
companies, Mr Toemsakdi for three months, and Mr Sangah for six
months.  Mr Pakorn said Deloitte Touche Tohmatsu Jaiyos had
already lodged and appeal against Mr Toemsakdi's suspension.  The
appeal, the Post said, would be considered by the commission's
board within 30 days.

KRUNG THAI: Post-Merger Restructuring Predicted
Though its size will match Bangkok Bank's following integration
with First Bangkok City Bank and Bangkok Bank of Commerce, Krung
Thai Bank still needs to conduct a thorough reorganisation before
it can be privatised, The Nation says in an article published
yesterday.  According to the comprehensive package tackling the
banking crisis, KTB should be privatised in the next two years
after the integration. However, according to market consensus,
KTB needs to be restructured and its cost-effectiveness improved.
Finance Minister Tarrin Nimmanahaeminda confirmed that Bank of
Thailand governor M R Chatu Mongol Sonakul had approached Mechai
Viravaidya, currently chairman of the Telephone Organisation of
Thailand, to chair the board of directors of Krung Thai Bank.
Mechai is reported to have accepted the offer.

Moreover, Pisit Lee-artham, deputy Finance Minister, said the
Finance Ministry would propose to appoint Aswin Kongsiri, Bangkok
Bank of Commerce's president, executive chairman of KTB,
replacing Somchainuk Engtrakul, who is currently director-general
of the Customs Department.  Chatu Mongol noted that KTB needed
changes to increase transparency as the government would help
recapitalise the state-run banks with about Bt130 billion in new
capital. Since the government currently holds around 70 per cent
in the bank, representatives from government agencies sit on the
bank's board.

"Considering its board of directors, the bank is certainly
unattractive for foreign investors. Few on the board understand
the banking business, which gets more and more complicated every
day.  The chairman should reflect the bank's image, but the
current chairman [Supachai Pisitvanich] apparently has no role in
initiating any policy in the bank," one top executive banker told
The Nation.  With the same asset size of more than Bt1 trillion,
BBL has Prasit Kanchanawat, a very experienced banker, as its
chairman, and sitting on the board are bankers who have been in
the banking industry for several decades, including Piti Sithi-
Amnuai, Damrong Krishnamara, Deja Tulananda and Vichai
Surapongchai.  Before privatisation, the market also believed
that KTB needs to restructure the executive and middle management
teams.  "Other commercial banks have senior executives with in-
depth experience in line with their responsibility, such as
treasury, liability management, credit and consumer banking, but
KTB has few specialists, since it has rotated its executive too
often," a banker quoted by The Nation said.

Though Sirin Nimmannahaeminda, who has been KTB's president for
years, has moved to clean up the bank's portfolio and increase
operational efficiency, he has met resistance several times. As a
state-owned bank, the bank's executives and staff in the past
have been hired based not only on their qualifications and
ability but also on their seniority, which could put the wrong
man in the wrong job.  Sirin, who has been attempting to run the
bank with transparency, did not want to promote some old-timers
to top-tier management, as he was afraid that they might cause
additional fraud or operate without transparency as happened
before his term.  An analyst in a foreign brokerage surveyed by
The Nation added that KTB needed to recruit more staff as
operation heads. Compared with commercial banks like BBL, KTB has
less flexibility in recruiting people with high ability to drive
the work at operations level.  So far, KTB's activities in
several areas of business are less active than those of other
banks, particularly in investment banking and foreign exchange.
"The Development Bank of Singapore (DBS), the biggest state-owned
bank, recently recruited a former executive from J P Morgan as
its CEO who also brought a team with him. The move showed that
the Singapore government realised how important the management
was. Even though DBS is a state bank, it allows foreigners to run
it. I believe Thai government may not follow suit, since they
would not able to afford those high-income professionals," a
senior executive in a commercial bank said to a reporter for The

So far KTB has invested more than Bt3 billion in its information
technology as well as in re-engineering its branch network.
According to Sirin, KTB will re-engineer 100 outlets this year
and an additional 150 branches next year. If the integration with
FBCB is completed, KTB will also re-engineer FBCB's branch as
well. Following the integration with FBCB and BBC, KTB will have
assets of Bt1.3 trillion, with Bt202 billion of reserve and Bt180
billion of equity.  

The exiting KTB board of directors are: Supachai, who is
resigning from the board as chairman and is currently the
permanent secretary of finance, Sirin, who is KTB president,
Thongtha Sinadyodharaks, representative of the Crown Property
Bureau, Dr Chockchai Aksaranan, top Chareon Pokaphand Group
executive, Somchainuk Engtrakul, the Customs Department's
director-general, Mongkol Tunsakul, adviser to the Ministry of
Foreign Affairs and the Ministry of Labour and Social Welfare,
Oranuj Osatananda, adviser to the Prime Minister's Office, Pol
Gen Pracha Promnog, Dr Prawit Ninsuvannakul, an economist at
Chulalongkorn University, Viravat Chalayon, governor of the
Electricity Generating Authority of Thailand, and Suchart
Triprasit.  KTB's executive board consists of Somchainuk, Sirin,
Thongtha, Wisudhi Srisuphan and a representative of the Ministry
of Finance.

PRANDA JEWELRY: To Consolidate & Sell Minority Interest
Pranda Jewelry Plc, one of the largest Thai jewellery
manufacturers and exporters, plans to offer a minority stake to
foreign investors and consolidate its local business by cutting
unprofitable business units, said chairman Preeda Tiasuwan.  
Preeda said the company is negotiating with foreign investors
interested in acquiring a stake in Pranda Jewelry, according to a
report appearing in The Nation.  The group requires new capital
from a joint venture to expand its retail and wholesale outlets
in markets such as Asia and the Middle East.

"We want to expand our retail and wholesale outlets for gold
jewellery in the period of economic downturn as we can take
benefit of the difficulty period to take a prime position in the
market," Preeda told The Nation, adding that potential partners
must understand the gold jewellery industry, as well as support
the group's future expansion projects.

Pranda Jewelry recently shut down its direct-selling subsidiary
PG Network Co Ltd as part of its consolidation programme to close
non-core business units as well as retail outlets that could not
generate profit.  The group also closed non-profit gold jewellery
shops after facing a huge domestic sales decline.  Preeda said it
was consolidating to focus on jewellery manufacturing and trade.
Any business activities outside its core business will be
suspended or shut down.

"We shut down our direct-selling unit as it will lead us out of
our core jewellery business," said Preeda, adding other
diversified products, such as consumer goods and cosmetics, might
be introduced by the direct-selling firm in the future, The
Nation reported.

Operating for almost three years, PG Network Co Ltd generates
annual sales of between Bt15 million and Bt20 million for the
group, The Nation reports.   

Preeda said the company had shut down seven gold jewellery shops
this year, aimed at concentrating on shops that could make good
profits. The company decided to shut any shops in low-traffic
shopping complexes such as Fashion Island.  Preeda admitted the
group expanded hugely in previous years as they could borrow
cheap funds from abroad.  In the past the group has also expanded
its business into areas where it had no experience.

Sawang Naruemanaskul, general manager of sales subsidiary Prima
Gold Co Ltd, owner and operator of Prima Gold shops, told The
Nation that the economic recession and reduced consumer spending
power resulted in average sales drops of between 20 and per cent
at each shop.  The company now operates 27 Prima Gold shops
locally and has stores in Japan, Malaysia, Indonesia, the
Philippines, Pakistan, Dubai and Egypt.  

Since mid-1997 when the economic crisis erupted, gold consumption
in Thailand has registered a negative growth rate, according to
The Nation. That is in sharp contrast to 1995/96 when the value
of the local gold market shot up by 15 per cent over 1993/94 to
Bt4.6 billion.  From mid-1997, cash-trapped Thais have been
selling more gold to local traders than they have been buying.
Between 200 and 300 local gold shops have been forced out of
business since the crisis hit.  Preeda explained to The Nation
that during the economic downturn brand development should become
a major concern of jewellers.  Local jewellers should build their
own brand names as they cannot take advantage of low production
costs anymore. He added that Prima Gold had allocated Bt120
million to invest in building its name during the past six years.

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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