TCRAP_Public/980901.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, September 1, 1998, Vol. 1, No. 134

                    Headlines


C H I N A   &   H O N G   K O N G

AZTEC TOYS LIMITED: Winding-up petition
BALI WATCH HONG KONG LIMITED: Winding-up petition
CHEERON INTERNATIONAL INVESTMENT: Winding-up petition
COYDEN CORPORATION LIMITED: Winding-up petition
DON ASHTON DESIGNERS: Creditors' meeting

HANSENFORD TRADING COMPANY LIMITED: Winding-up meeting
HENDERSON LAND DEVELOPMENT: HK developer downgraded
HYSAN DEVELOPMENT: Secures $1.5b facility
JINTECH RESEARCH INTERNATIONAL LIMITED: Winding-up petition
LINKROY INTERNATIONAL LIMITED: Winding-up petition

KOO HONG GAI COMPANY LIMITED: Winding-up petition
POSTRON PETROCHEMICAL INVESTMENTS: Winding-up petition
RICHWAY (H.K.) LIMITED: Winding-up petition
SINOMEX (HONG KONG) LIMITED: Winding-up petition
SUN HUNG KAI PROPERTIES TREASURY: HK developer downgraded

SWANK INTERNATIONAL: Swank sets sight on debt scheme


I N D O N E S I A

GARUDA INDONESIA: Domestic air fares going up by 54%
MERPATI AIR: Domestic air fares going up by 54%


J A P A N  

BANDAI COMPANY: Expects 56% profit fall
FUJI BANK: Moody's cuts Fuji's ratings
HANSHIN BANK: To merge with Midori Bank
JAPAN LEASING: LTCB to release financial data
LONG TERM CREDIT: LTCB opening books to secure bailout

MIDORI BANK: To merge with Hanshin Bank
NIHON SPINDLE: Expects drastically lower half-year results
NIKON CORP: Camera manufacturer Nikon sees red
NIPPON ENTERPRISES: LTCB to release financial data
NIPPON LANDIC: LTCB to release financial data


K O R E A

COMMERCIAL BANK OF KOREA: Banks to get $29b after merger
HANIL BANK: Banks to get $29b after merger
KIA MOTORS: Kia auction cancelled amid debt controversy
SUNGIN METALS: Company files for court receivership


M A L A Y S I A

HC INDUSTRIES SDN BHD: Winding-up petition
L.K. HWA TRADING SDN BHD: Winding-up petition
LEISURE MANAGEMENT BHD: Results announcement
NAUTICALINK BHD: Results announcement
PKNK TRADING SDN BHD: Winding-up petition

PAN MALAYSIA CEMENT: Sells cement interests
PENGKALEN HOLDINGS BHD: Pre-tax loss
SCK GROUP BHD: Results announcement
QUANTUM RESOURCES SDN BHD: Voluntary winding-up


P H I L I P P I N E S

INTERNATIONAL CONTAINER: Focuses on debt reduction
PHILIPPINE AIRLINES: PAL will cut fleet to avoid bankruptcy


T H A I L A N D

AMATA CHINA: Bang Pakong subsidiary to be liquidated
AVATAR PCL: Temporary closing announced
BANGCHAK PETROLEUM: Audit reviews foreign exchange report
GOLDEN LAND: Auditor's report reviews interest costs
LAND AND HOUSES: Audit reviews liabilities on associates

PREMIERE ENTERPRISE PCL: Results announcement
SIAM COMMERCIAL LIFE: Statements not in compliance
SINGER THAILAND PCL: Results announcement


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

AZTEC TOYS LIMITED: Winding-up petition
---------------------------------------
A petition for the winding up of Aztec Toys Limited was
presented to the High Court on Aug 11 by Angela Wang & Co
on behalf of the petitioner, Sinomex (USA) Corp care of
Units A&B, 15th Floor, Entertainment Building, 30 Queens
Road Central, Hong Kong, and the said petition is directed
to be heard before the court at 9:30 am on Sept. 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, Angela Wang & Co of Units A&B, 15th Floor,
Entertainment Building, 30 Queens Road Central, Hong Kong ,
Central, Hong Kong on payment of the regulated charges for
the same.


BALI WATCH HONG KONG LIMITED: Winding-up petition
-------------------------------------------------
A petition for the winding up of Bali Watch Hong Kong
Limited was presented to the High Court on  August 20 by
Cheng Fong of Room 1434, Block 5, Wong Chuk Hang Estate,
Aberdeen, Hong Kong, and the said petition is directed to
be heard before the court at 9:30 am on Sept. 23, and any
creditor or contributor 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 Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong on payment of the
regulated charges for the same.


CHEERON INTERNATIONAL INVESTMENT: Winding-up petition
-----------------------------------------------------
A petition for the winding up of Cheeron International
Investment Limited was presented to the High Court on  
August 14  by Ng Hau Lee of 88 Shui Tsu Sam Tsuen, Tai Tong
Road, Yuen Long, New Territories, and the said petition is
directed to be heard before the court at 11:00 am on Sept.
16, and any creditor or contributor 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 Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong on payment of the
regulated charges for the same.


COYDEN CORPORATION LIMITED: Winding-up petition
-----------------------------------------------
A petition for the winding up of Coyden Corporation Limited
was presented to the High Court on August 13 by the
Hongkong and Shanghai Banking Corporation Limited whose
registered office is situate at No. 1 Queen's Road Central,
Hong Kong. And the said petition is directed to be heard
before the court at 9:30 am on Sept. 9, 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, 18th Floor, Prince's Building, 10
Chater Road, Central, Hong Kong on payment of the regulated
charges for the same.


DON ASHTON DESIGNERS: Creditors' meeting
----------------------------------------
A final meeting of the contributories of Don Ashton
Designers (Asia) Limited will be held at 8/F., Allied
Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong on
Sept. 30 at 10:00 am and a final meeting of the creditors
will be held at 11:00 am, for the purpose of having an
account laid before them showing the manner in which the
winding-up has been conducted the property of the company
disposed of, and of hearing any explanation that may be
given by the Liquidator, and also of determining of Special
Resolution of the Company the manner in which the books,
accounts and documents of the Company, and of the
Liquidator thereof, Nicholas Timothy Cornforth Hill, shall
be disposed of.


HANSENFORD TRADING COMPANY LIMITED: Winding-up meeting
------------------------------------------------------
A meeting of members of Hansenford Trading Company Limited
will be held at Room 611, 6/F., Wing Fat Industrial
Building, 12 Wang Tai Road, Kowloon Bay, Kowloon on Oct 5
at 11:00 am to consider the Statement of Affairs, to
appoint Liquidator(s), and to consider further matters
relevant to Creditor's Voluntary Winding-up of the company.
Proxies must be lodged at  Room 611, 6/F., Wing Fat
Industrial Building, 12 Wang Tai Road, Kowloon Bay, Kowloon
not later than 24 hours before the time appointed for the
holding of the meeting.


HENDERSON LAND DEVELOPMENT: HK developer downgraded
---------------------------------------------------
The Asian Wall Street Journal reports that the Japan Rating
and Investment Information Inc. has downgraded the long-
term debt ratings of two Hong Kong developers. The rating
action reportedly reflects the severe conditions faced by
the Hong Kong property market, especially the current de-
inflationary trend which has no clear signs of recovery.  

Sun Hung Kai Properties Treasury's was cut from AA- to A-,
Henderson Land Development was cut from A+ to A-.  

Sun Hung Kai Properties Treasury is a subsidiary of Sun
Hung Kai Properties Ltd., and Henderson Land Development is
a subsidiary of Henderson Land Treasury.  


HYSAN DEVELOPMENT: Secures $1.5b facility
-----------------------------------------
According to the SCMP Hysan Development yesterday signed a
$1.5 billion three-year term loan facility to refinance an
existing loan arranged for the redevelopment of The Lee
Gardens, Causeway Bay.

The loan - arranged by eight local and international banks
- carries an interest rate of 193.75 basis points over the
Hong Kong interbank offered rate.

Hysan earlier said it would continue to unload non-core
properties to reduce debt and interest expenses.


JINTECH RESEARCH INTERNATIONAL LIMITED: Winding-up petition
-----------------------------------------------------------
A petition for the winding up of Jintech Research
International Limited was presented to the High Court on  
August 7 by Chan Sai Hei of Room 202, Ching Mui House,
Cheung Ching Estate, Tsing Yi, New Territories, and the
said petition is directed to be heard before the court at
9:30 am on Sept. 9, and any creditor or contributor 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 Tam
Lee Po Lin, Nina for Director of Legal Aid, 27th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong on
payment of the regulated charges for the same.


LINKROY INTERNATIONAL LIMITED: Winding-up petition
--------------------------------------------------
A petition for the winding up of  Linkroy International
Limited was presented to the High Court on  August 13 by
Chun Fu Investment Company Limited whose registered address
is situated at Top Floor, Chinachem Golden Plaza, 77 Mody
Road, Kowloon, Hong Kong. And the said petition is directed
to be heard before the court at 9:30 am on Sept. 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, Ford, Kwan & Company, Suites 1505-8, Chinachem
Golden Plaza, 77 Mody Road, Tsimshatsui East, Kowloon, Hong
Kong on payment of the regulated charges for the same.


KOO HONG GAI COMPANY LIMITED: Winding-up petition
-------------------------------------------------
A petition for the winding up of Koo Hong Gai Company
Limited was presented to the High Court on July 23 by AO
KAO trading as "OFICINA DE PIVETES KAO KEI" also known as
"KAU KEI CHOU HEONG KONG CHEONG" also known as "KAU KEI
JOSS STICK FACTORY," whose principal place of business is
situate at Edificio Industrial Cidade Nova, Block A, 4 And.
Rua dos Currais Macau. The said petition is directed to be
heard before the court at 9:30 am on Sept. 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, So Keung Yip & Sin, 17th Floor, Standard
Chartered Bank Building, 4 Des Voeux Road Central, Hong
Kong on payment of the regulated charges for the same.


POSTRON PETROCHEMICAL INVESTMENTS: Winding-up petition
------------------------------------------------------
A petition for the winding up of Postron Petrochemical
Investments Company Limited was presented to the High Court
on  August 10 by Mobil Oil Hong Kong Limited whose
registered office is situate at 12th Floor, Ocean Centre,
Harbour City, Tsimshatsui, Kowloon, Hong Kong. And the said
petition is directed to be heard before the court at 9:30
am on Sept. 9, 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, Freshfields 12th Floor, Two
Exchange Square, Central, Hong Kong on payment of the
regulated charges for the same.


RICHWAY (H.K.) LIMITED: Winding-up petition
-------------------------------------------
A petition for the winding up of Richway (H.K.) Limited was
presented to the High Court on  August 20 by Westrong
Investments Limited whose registered office is situated at
Unit K, 9th Floor, World Tech Centre, No 95 How Ming Street,
Kwun Tong, Kowloon, Hong Kong. And the said petition is
directed to be heard before the court at 9:30 am on Sept.
23, 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, W.K. To & Co., 11th Floor, Wheelock House, 20
Pedder Street, Central, Hong Kong on payment of the
regulated charges for the same.


SINOMEX (HONG KONG) LIMITED: Winding-up petition
------------------------------------------------
A petition for the winding up of Sinomex (Hong Kong)
Limited was presented to the High Court on Aug 11 by Angela
Wang & Co on behalf of the petitioner, Sinomex Inc. care of
Units A&B, 15th Floor, Entertainment Building, 30 Queens
Road Central, Hong Kong, and the said petition is directed
to be heard before the court at 9:30 am on Sept. 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, Angela Wang & Co of Units A&B, 15th Floor,
Entertainment Building, 30 Queens Road Central, Hong Kong ,
Central, Hong Kong on payment of the regulated charges for
the same.


SUN HUNG KAI PROPERTIES TREASURY: HK developer downgraded
---------------------------------------------------------
The Asian Wall Street Journal reports that the Japan Rating
and Investment Information Inc. has downgraded the long-
term debt ratings of two Hong Kong developers. The rating
action reportedly reflects the severe conditions faced by
the Hong Kong property market, especially the current de-
inflationary trend which has no clear signs of recovery.  

Sun Hung Kai Properties Treasury's was cut from AA- to A-,
Henderson Land Development was cut from A+ to A-.  

Sun Hung Kai Properties Treasury is a subsidiary of Sun
Hung Kai Properties Ltd., and Henderson Land Development is
a subsidiary of Henderson Land Treasury.  


SWANK INTERNATIONAL: Swank sets sight on debt scheme
----------------------------------------------------
The SCMP reports that Swank International Manufacturing,
which makes eye-glass frames, hopes to finalise in a
month's time plans to restructure $1 billion in debt with
42 creditor banks, and the company's share trading, frozen
since the financial troubles came to light in March last
year, would resume at the conclusion of the restructuring
plan, according to the company's chairman Gerald Dobby.

Mr Dobby said some foreign banks might buy Swank's debts in
exchange for a stake in the company and he hopes the
proposal will be finalised within the next four weeks.

Swank, one of the world's leading makers of eye-wear in
terms of volume, saw its financial health undermined by
lens trading during the four years to March last year.

Some of the trading was conducted without following prudent
commercial procedures with Hanmy (Holdings), a company
linked to executive director Lam Yin-sang. As a result,
Hanmy owed Swank $97 million in debts and Swank's trading
with Hanmy was terminated in March last year. Swank was
negotiating with Hanmy to get about $62 million of debts
settled by buying Hanmy's assets, largely mainland
properties.

Auditor KPMG Peat Marwick disclaimed its opinion on Swank's
balance sheet last year due to limited evidence available
for auditing and uncertainty surrounding Swank's debt
restructuring.

Swank reported a 40 percent drop in attributable loss to
$337.09 million in the year to December 31.


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

GARUDA INDONESIA: Domestic air fares going up by 54%
----------------------------------------------------
According to the SCMP, the Republika newspaper quoted
Garuda president Robby Djohan as saying that
rationalisation is an important factor in a restructuring
program. Garuda Indonesia may lay off thousands of
employees as part of a restructuring amid the economic
crisis.

Another article in the post says that there will be a 40
per cent rise in domestic air fares tomorrow, to be
followed by another 14.5 percent increase on December 1, in
a bid by the government to keep the industry afloat.

The Jakarta Post quoted vice president of Garuda, Mr Robert
Wiloni, as saying that the increased fares, which equate to
753 rupiah a kilometre, would help cut losses but fell far
short of allowing the carrier to break even.

On Friday, Tanri Abeng, state minister for the Empowerment
of State Enterprises, suggested that one way of preventing
the country's second airline, Merpati, from going under
would be a merger with Garuda.

Merpati, a Garuda subsidiary until 1995, has posted
successive annual net losses since it became independent.

The Hong Kong Standard also reports on the fare increase.
It says that according to Mr Wiloni, Garuda, which was
earlier reported to be suffering a three billion rupiah
operating loss daily, would have to levy fares of 1,021
rupiah per kilometre based on the same exchange rate.


MERPATI AIR: Domestic air fares going up by 54%
-----------------------------------------------
According to the SCMP, the Republika newspaper quoted
Garuda president Robby Djohan as saying that
rationalisation is an important factor in a restructuring
program. Garuda Indonesia may lay off thousands of
employees as part of a restructuring amid the economic
crisis.

Another article in the post says that there will be a 40
per cent rise in domestic air fares tomorrow, to be
followed by another 14.5 percent increase on December 1, in
a bid by the government to keep the industry afloat.

The Jakarta Post quoted vice president of Garuda, Mr Robert
Wiloni, as saying that the increased fares, which equate to
753 rupiah a kilometre, would help cut losses but fell far
short of allowing the carrier to break even.

On Friday, Tanri Abeng, state minister for the Empowerment
of State Enterprises, suggested that one way of preventing
the country's second airline, Merpati, from going under
would be a merger with Garuda.

Merpati, a Garuda subsidiary until 1995, has posted
successive annual net losses since it became independent.

The Hong Kong Standard also reports on the fare increase.
It says that according to Mr Wiloni, Garuda, which was
earlier reported to be suffering a three billion rupiah
operating loss daily, would have to levy fares of 1,021
rupiah per kilometre based on the same exchange rate.


=========
J A P A N  
=========

BANDAI COMPANY: Expects 56% profit fall
---------------------------------------
Bloomberg reports shares of Bandai Co. rose 94 yen to
1,870. The toymaker will likely report a 56 percent fall in
parent current, or pretax, profit to 3 billion yen ($21
million) in the half-year ending Sept. 30 from the same
period a year earlier as Tamagotchi virtual pet sales slow,
the Nihon Keizai newspaper reported, without citing
sources.


FUJI BANK: Moody's cuts Fuji's ratings
--------------------------------------
An AFP article in the Korea Times reports that Moody's
Investor Services cut its senior debt ratings for the Fuji
Bank Ltd. from A3 to Baa2. The bank's long-term deposit
rating was also dropped from A3 to Baa1.  

The article stated that the action reflects some of the
risk associated with Fuji's close ties to another troubled
bank, the Yasuda Trust and Banking Company, Ltd. Fuji Bank
took a heavy loss in the previous financial year ending in
March when it wrote off 980.7 billion yen in bad debts. It
also suffered a 517.3 billion yen pre-tax loss, compared
with a 75.4 billion yen profit the year before.


HANSHIN BANK: To merge with Midori Bank
---------------------------------------
Hanshin Bank and Midori Bank jointly said Friday a new bank
to be created through their merger next April will be named
Minato Bank.


JAPAN LEASING: LTCB to release financial data
---------------------------------------------
According to the Hong Kong Standard, the ailing LTCB will
release financial data - balance sheets, profit and loss
statements, and restructuring plans through March of this
year - on three of its non-banking affiliates - Japan
Leasing Co., Nippon Landic Co. and Nippon Enterprises
Development Co. - in a bid to help pave the way for a
capital infusion from the public coffers.

The government has demanded the disclosure as a condition
for it to inject public funds into LTCB. Japan Leasing has
already released an annual report that included many
financial details, but important financial details for the
other two affiliated companies have not been released.


LONG TERM CREDIT: LTCB opening books to secure bailout
------------------------------------------------------
According to the Hong Kong Standard, Japanese Finance
Minister Kiichi Miyazawa said if LTCB is found to be
insolvent, a proposed bridge bank could take over it.

Parliament is debating legislation to bring the banking
industry back to health, including the establishment of
bridge banks to take over banks that fail. Mr Miyazawa has
said repeatedly that he prefers a soft landing or a merger
partner for any of Japan's 19 major banks that may be in
financial difficulty. He expressed concerns that defaults
on derivative trading could occur during the process of
major banks being transferred to bridge banks and of the
negative impact on the global financial system.

According to the Hong Kong Standard, the ailing LTCB will
release financial data - balance sheets, profit and loss
statements, and restructuring plans through March of this
Japan Leasing Co., Nippon Landic Co. and Nippon Enterprises
Development Co.year - on three of its non-banking
affiliates - - in a bid to help pave the way for a
capital infusion from the public coffers.  

The government has demanded the disclosure as a condition
for it to inject public funds into LTCB. Japan Leasing has
already released an annual report that included many
financial details, but important financial details for the
other two affiliated companies have not been released.

LTCB said it would seek public funds to boost its capital
and smooth the path for a merger with Sumitomo Trust & Bank
Co Ltd. It said a basic agreement on the merger is expected
to be made in October.


MIDORI BANK: To merge with Hanshin Bank
---------------------------------------
Hanshin Bank and Midori Bank jointly said Friday a new bank
to be created through their merger next April will be named
Minato Bank.


NIHON SPINDLE: Expects drastically lower half-year results
----------------------------------------------------------
Bloomberg reports shares of Nihon Spindle Mfg. Co. rose 5
yen to 198. The maker of spindle and ring for spinning
machines widened its parent pretax loss forecast to 450
million yen for the half-year ended in September. That's
800 percent more than the most recent forecast by Toyo
Keizai.


NIKON CORP: Camera manufacturer Nikon sees red
----------------------------------------------
Bloomberg reports shares of Nikon Corporation, Japan's
major camera manufacturer, sank into red this year as the
prolonged slump of the microchip market hit the firm's
money-making venture. Nikon is likely to incur a loss
before tax of five billion yen at the parent level in the
current financial year ending next March.


NIPPON ENTERPRISES: LTCB to release financial data
--------------------------------------------------
According to the Hong Kong Standard, the ailing LTCB will
release financial data - balance sheets, profit and loss
statements, and restructuring plans through March of this
year - on three of its non-banking affiliates - Japan
Leasing Co., Nippon Landic Co. and Nippon Enterprises
Development Co. - in a bid to help pave the way for a
capital infusion from the public coffers.

The government has demanded the disclosure as a condition
for it to inject public funds into LTCB. Japan Leasing has
already released an annual report that included many
financial details, but important financial details for the
other two affiliated companies have not been released.


NIPPON LANDIC: LTCB to release financial data
---------------------------------------------
According to the Hong Kong Standard, the ailing LTCB will
release financial data - balance sheets, profit and loss
statements, and restructuring plans through March of this
year - on three of its non-banking affiliates - Japan
Leasing Co., Nippon Landic Co. and Nippon Enterprises
Development Co. - in a bid to help pave the way for a
capital infusion from the public coffers.

The government has demanded the disclosure as a condition
for it to inject public funds into LTCB. Japan Leasing has
already released an annual report that included many
financial details, but important financial details for the
other two affiliated companies have not been released.


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

COMMERCIAL BANK OF KOREA: Banks to get $29b after merger
--------------------------------------------------------
According to the Hong Kong Standard, Yonhap News Agency
said that Commercial Bank of Korea and Hanil Bank may get
about five trillion won in government subsidiaries for a
planned merger. Officials of the Financial Supervisory
Commission said that their estimates showed that amount
would be enough to help the banks shore up finances and run
independently.


HANIL BANK: Banks to get $29b after merger
------------------------------------------
According to the Hong Kong Standard, Yonhap News Agency
said that Commercial Bank of Korea and Hanil Bank may get
about five trillion won in government subsidiaries for a
planned merger. Officials of the Financial Supervisory
Commission said that their estimates showed that amount
would be enough to help the banks shore up finances and run
independently.


KIA MOTORS: Kia auction cancelled amid debt controversy
-------------------------------------------------------
The Korea Herald reports that the international auction to
sell off Kia Motors and its sister company Asia Motors
Corporation has been canceled because of controversy over
the validity of the tenders submitted by all of the four
companies (Samsung, Hyundai, Daewoo, and Ford) bidding.

A similar story in the Korea Times said that creditor bank
officials reportedly approached two of the bidders (Samsung
and Daewoo) to ask if they would be willing to change their
position requesting that Kia's debts be written off. Ford
then immediately protested with a written response saying
such a request was not in line with international
standards, and that a tender, once submitted cannot be
altered.

The Korea Herald also reported that the auction management
office (comprising of officials from Anderson Consulting
and Paris Bank National) disbanded the tender evaluation
team after Kia's creditor banks asked bidders to modify
their tenders.  

Kia's court appointed manager, Mr. Yoo Chong-yul, has
called for a second auction to be announced on September
11. Creditors, under this schedule, will decide by
September 10 how much of the 12.5 trillion won in Kia and
Asia Motors debt will be written off. The new bid will be
received by September 21, with the successful bidder
announced on September 26.

The influential Chosun Ilbo reported on Saturday Samsung
was given the highest points among the four bidders in the
evaluation process, which focused on bidding price, long
term cash flow and contribution to the two companies and
the Korean economy.

The paper said Ford and Hyundai's bid prices were less than
the minimum amount set by the creditors and are calling for
another round of bidding, saying all four firms attached
the new conditions for further debt cuts.

The successful bidder has to offer at least 1.07 trillion
won, or 51 percent of the combined capital of Kia and Asia.

Analysts said Ford would make a trade issue if Kia
creditors selected Samsung or Daewoo.

Kia plans to increase its capital to 1.5 trillion won and
Asia to 600 billion won.


SUNGIN METALS: Company files for court receivership
---------------------------------------------------
The Asian Wall Street Journal reported that the Sungin
Metal Company has filed for court receivership. A company
official cited in the report stated that although the
company has not defaulted on any maturing debts, it has
suffered losses due to sluggish industrial conditions and
difficulty in importing raw materials.


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

HC INDUSTRIES SDN BHD: Winding-up petition
------------------------------------------
Konsortium Perkapalan Berhad had on 18.6.1998 presented a
winding-up petition against HC Industries Sdn. Bhd. The
petition is directed to be heard on 24.9.1998.


L.K. HWA TRADING SDN BHD: Winding-up petition
---------------------------------------------
Konsortium Perkapalan Berhad had on 18.6.1998 presented a
winding-up petition against L.K. Hwa Trading Sdn. Bhd. The
petition is directed to be heard on 24.9.1998.


LEISURE MANAGEMENT BHD: Results announcement
--------------------------------------------
Leisure Management Bhd, listed in the KLSE, reported a
180.9% drop in post-tax profits from RM19.352mil previously
to a post-tax loss of RM15.649mil for the year ended
30/6/98. EPS dropped 233% from RM0.1356 to a loss per share
of RM0.1803. The share however, rose 8.6% from RM17.50 a
year ago to RM19.00 on 28/8/98.


NAUTICALINK BHD: Results announcement
-------------------------------------
Nauticalink Bhd (listed in the KLSE) posted a 6.5% increase
in post-tax loss from RM3.184mil previously to RM3.391mil
for the year ended 30/6/98. Loss per share also rose 6.5%
from RM0.1592 to RM0.1695 during the same period. The share
price fell 85% from RM4.40 a year ago to RM0.66 on 28/8/98.


PKNK TRADING SDN BHD: Winding-up petition
-----------------------------------------
Multi-Usage Trading Sdn. Bhd. had on 28.6.1998 presented a
winding-up petition against PKNK Trading Sdn. Bhd. The
petition is directed to be heard on 3.10.1998.


PAN MALAYSIA CEMENT: Sells cement interests
-------------------------------------------
Pan Malaysia Cement Works (listed in the KLSE), which is
57.7% owned by Malayan United Industries Bhd (MUI) (also
listed in the KLSE) is selling its entire 50% stake in
Associated Pan Malaysia Cement Sdn Bhd to Malayan Cement
Bhd for RM1.3bil cash.

The proceeds from the disposal are to be used to repay
PMCW's entire RM480mil borrowings and the balance will be
deposited into interest-bearing accounts pending
investment.

The divestment represent MUI's plan to rationalise its
business to hotels, food industries and retailing.

The sale would realise a capital gain of RM723mil or
increasing the EPS for the current year by RM0.978.


PENGKALEN HOLDINGS BHD: Pre-tax loss
------------------------------------
Pengkalen Holdings Bhd (listed in the KLSE) reported a pre-
tax loss of RM668.866mil for the 6months ended 30/6/98,
compared to a pre-tax profit of RM8.066mil between April 1
an Sept 1997. Group loss per share surged tp RM2.79 from
RM0.07.


SCK GROUP BHD: Results announcement
-----------------------------------
SCK Group Bhd, listed in the KLSE, reported a 50.3% rise in
post-tax loss for the year 31/3/98 to RM28.859mil from
RM19.197mil previously. Loss per share jumped 40.2% from
RM0.98 to RM1.37 during the same year. The shares last
traded on 28/8/98 at RM1.90, down 72.9% from RM7.00 one
year ago.


QUANTUM RESOURCES SDN BHD: Voluntary winding-up
-----------------------------------------------
The members of Quantum Resources Sdn Bhd on 14/8/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
17/9/98.


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

INTERNATIONAL CONTAINER: Focuses on debt reduction
--------------------------------------------------
According to PNA, International Container Terminal
Services, Inc. (ICTSI) will prioritize financing for debt
reduction this year and hold its P2 billion expansion
program.

ICTSI chairman and chief executives officer Enrique Razon,
Jr. said the focus of the company this year will be on its
expansion program abroad and reduce debt locally.

ICTSI projects total revenues to add up to P3.2 billion
this year, 15.5 percent higher than its gross revenue of
P2.77 billion last year.

The latter is a slight improvement from the previous year`s
P2.547 billion. Net income for last year dropped to
P290.272 million from P474.734 million in 1996.

ICTSI and its foreign subsidiaries are planning to retire
long-term debts through a $50 million private placement and
a $40 million rights offering by the middle of the year.

The company will stage the offering by middle of this year
to offset long-term obligations from local banks and
investment houses.


PHILIPPINE AIRLINES: PAL will cut fleet to avoid bankruptcy
-----------------------------------------------------------
According to the SCMP, PAL will by November begin deploying
a leaner, younger fleet and reduce its exposure to
unprofitable domestic operations, which is believed to
allow it to cope better with the difficulties and avoid
bankruptcy.

Next month, the carrier is to submit a rehabilitation plan
to the Securities and Exchange Commission. The plan calls
for a fleet of initially between 21 and 25 aircraft
compared with the present 54. It will also retire its
Fokker 50 turboprop aircraft used mainly in domestic
operations.

PAL sacked about 5,000 ground crew and 600 pilots after the
pilots' strike in June, but it later hired new pilots and
took back some of the strikers.

The airline used to fly to 16 international destinations
before announcing its cutback in June. Now it flies only to
San Francisco, Los Angeles, Hong Kong, Tokyo, Fukuoka,
Singapore and Taipei. Last week, it said it would mount 10
new international flights in October.

The airline said earlier it was filling about 76 per cent
of its seats on domestic flights and 73 per cent on
international flights.

Its loss in the first quarter of this year surged nearly 10
times from a year earlier to 4.9 billion pesos.


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

AMATA CHINA: Bang Pakong subsidiary to be liquidated
----------------------------------------------------
An announcement was made at the Bang Pakong Industrial Park
2 PLC's Board of Directors Meeting No. 4/1998 held on 26
August 1998 over the decision to terminate Amata China Co.,
Ltd., which is a subsidiary of the company.

Bang Pakong Industrial Park 2 Public Company Limited
held 99.94% of the 1,000,000 baht registered capital
belonging to Amata China Co., Ltd.

At this point in time, Mr. Wikrom Soukavanitch has been
appointed as a liquidator. Amata China Co., Ltd. is found
to have a negative shareholder' equity.


AVATAR PCL: Temporary closing announced
---------------------------------------
The SET halted securities trading of KCE on 27 July 1998
after the company announced that Avatar Co., Ltd, its
associated company, had met the problems of capital raising
and marketing. Avatar temporary ceased their production and
laid off some of their workers on 25 August 1998.

Trading resumed after KCE released further information on
its investment in Avatar. KCE invested Baht 1,068,389,875
in Avatar as at June 30, 1998 on the Cost method. The
auditor has deducted loss on the declining value of the
investment of Baht 542,000,000. The remaining net
investment in Avatar as at June 30,1998 is therefore, Baht
526,389,85 (sic). KCE has receivables, short term loans,
advances and a commitment on guarantee of the loan of
Avatar and its subsidiary amounting to approximately Baht
858 million. This amount may vary according to foreign   
exchange fluctuations.

At the end of the first quarter of 1998, KCE's equity in
undistributed net loss on Avatar was Baht 96,011,064. At
June 30, 1998, KCE's net profit before deduct Loss on
devaluation of investment in undistributed net profit on
Avatar was Baht 69,402,561.

Avatar gave us the additional information that due to lack
of liquidity, intense marketing competition and financial
losses, Avatar System Corp. ( Avatar's subsidiary
responsible for sales, marketing and research in the US)
had to cease all operation. Therefore Avatar had laid off
all the production workers in the company and will maintain
only a small number of administration and accounting
officers. The management of Avatar will require
approximately six months for the company's restructuring.


BANGCHAK PETROLEUM: Audit reviews foreign exchange report
---------------------------------------------------------
Referring to reviewed company financial statements for the
period ending June 30, 1998 filed by The Bangchak Petroleum
Plc, the auditor expressed an opinion on paragraph 3,
stating "As stated in note 1.9.2., the company records the
results of foreign exchange gains or losses on loan for
construction project as project cost during construction
and as income or expense after project completion. The full
amount of the foreign exchange gains or losses is not
reported as income or expense as in accordance with the
generally accepted accounting principles. As such, the net
loss for the second quarter 1998 was lower by 27.50 million
Baht and the net profit for the first six months of 1998,
lower by 84.01 million Baht. Total assets was also lower by
84.01 million Baht."

The SET notified the company for rectification within 30
days or by September 26, 1998.


GOLDEN LAND: Auditor's report reviews interest costs
----------------------------------------------------
Referring to reviewed company and consolidated financial
statements for the period ending June 30, 1998 filed by
Golden Land Property Development Plc, the auditor expressed
a qualified opinion on paragraph (e), stating  "Due to
liquidity squeeze, the subsidiary company has delayed
construction of certain projects. However, the subsidiary
company has capitalized interest cost on borrowing incurred
during the period as the project costs. The interest cost
as capitalized during the period ended June 30, 1998
amounted to Baht 25 million."

According to the Accounting Standard No.15 "Capitalisation
of the borrowing costs", the Subsidiary Company shall not
capitalise interest on borrowing incurred during the period
that the projects are delayed.

The SET notified the company for rectification within 30
days or by September 26, 1998.


LAND AND HOUSES: Audit reviews liabilities on associates
--------------------------------------------------------
Referring to reviewed company and consolidated financial
statements for the period ending June 30, 1998 filed by
Land and Houses Plc, the auditor expressed a qualified  
opinion on paragraph 4 stating "As stated in notes to  
financial statements No.18.1.2, the company has guaranteed
liabilities of two affiliates amounting to Baht 1,487.88
million. As at 30th June, 1998, two affiliates have   
sustained capital deficiency from their operation and  
encountered repayment problem which the company might be
responsible on the repayment of loans guarantees. The
company recognized loss equal to the investment in those
affiliates excluded such capital deficiency as liabilities
of the company. If the company recognizes loss base on the
equity method, gain from investment in subsidiaries and
affiliates will lower in the amount of Baht 123.37 million
together with net profit and retained earnings will reduce
at the same amount."

According to the Accounting Standard No.1 "Fundamental  
Accounting  Assumptions" (entity concept, conservatism and
fair-evidence concept) No.18 "Accounting for Investments in
Subsidaries and Associates", the company shall recognize
loss in excess of capital as liabilities of the company.

The  SET  notified  the company for rectification within 30
days or by September 26, 1998.


PREMIERE ENTERPRISE PCL: Results announcement
---------------------------------------------
Premiere Enterprise PCL reports results for the period
ending June 30, as a net loss of Bt1.68 billion. This
compares to a net loss of B157 million for the
corresponding 1997 period.


SIAM COMMERCIAL LIFE: Statements not in compliance
--------------------------------------------------
Referring to reviewed financial statements for the period
ending June 30, 1998 filed by Siam Commercial Life
Assurance Plc, the auditor expressed a qualified opinion  
on paragraph 3, stating "As discussed in Note 2 to the
financial statements, included in the investments in
securities as at 30th June, 1998 are the sum of Baht 43
million representing promissory notes of the financial
institutions in the group of 16 finance companies which
were ordered closed  by  the Ministry of Finance and the
sum of Baht 83 million and Baht 3.4  million representing
debentures issued by the companies who are currently in
financial difficulties and the related interest receivable.
The company has not set aside provision for diminution in
value of these investments, the valuation of which is  
dependent on the allocation of assets after liquidation of  
the financial institutions and the investee companies'
success in their restructural plan and future operation."

According to the Accounting Standard No.17 "Accounting for
Investments.", the company shall provide the allowance for
the decline in value of the promissory notes of those
financial institutions in the group of 16 finance
companies.

The SET notified the company for rectification within 30
days or by September 26, 1998.  


SINGER THAILAND PCL: Results announcement
-----------------------------------------
Singer Thailand PCL announced a loss after tax including an
exchange loss amounting to Baht 246 million, representing a
sharp decrease of 150 % vs the after-tax profit of Baht 737
million achieved for the same period of prior year.

The company says the exchange loss with the amount of Baht
76 million for twelve months ended 30 June 1998 was
reported as extraordinary item in accordance with the
announcement of the Institute of Certified Accountants and
Auditors of Thailand  No. 002/2540-2542 dated 19 September
1997. This exchange loss has not yet been realised as such
three-year loan will be due for repayment in July 1999,
January 2000 and July 2000, respectively by three
consecutive equal installments.

Furthermore, the loss from operations for the twelve months
covering July 1997 to June 1998 amounting to Baht 169
million was due to a decrease in sales of 38.6 % or Baht
3,242 million from the same period of prior year. The
country's worsening economic slowdown, rising unemployment
and the continuous company's responsive strict measures on
hire purchase financing scheme, all attributed to the
company's weakening sales.

Given the foregoing results, the company has to make
reserved expenses for bad debts, product loss, and
employees shortage increased by Baht 103.7 million from
prior year in order to run business in a conservative way.

As a result of liquidity crunch, the company had to bear
higher interest rates from 11-12% per annum in 1997 to 15-
17 % per annum in 1998. With the above reasons, the company
have to report the operation loss for the period of twelve
months as of June 30, 1998.

Additionally, the board of directors resolved that  
shareholders approve the omission of payment of final
dividend for fiscal year ended June 30, 1998.



S U B S C R I P T I O N   I N F O R M A T I O N

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Copyright 1998.  All rights reserved.  ISSN: 1520-9482.  

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