TCRAP_Public/980904.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Friday, September 4, 1998, Vol. 1, No. 137

                    Headlines


* C H I N A   &   H O N G   K O N G *

BIJOU FILMS (CHINA) LIMITED: Winding-up petition
C & C COMPANY LIMITED: Winding-up petition
DELUXE FASHIONS: Winding-up petition
EHK SERVICES: In members' voluntary winding up
GKC HOLDINGS: New writ served on Tang duo

GETEK INTERNATIONAL LIMITED: Winding-up petition
JUSCO STORES (HK): Tough times forecast for Jusco Stores
KAM LI MAN GARMENT MANUFACTORY: Winding-up petition
KWONG TAT JEWELLERY: Notice of members' meeting
MITSUKAWA CATERING GROUP LIMITED: Winding-up petition

WALLIE DEVELOPMENT: Winding-up petition
WHARF HOLDINGS: No provisions on sharply lower profits


* I N D O N E S I A *

GARUDA INDONESIA: Garuda to lay off 3,000 employees


* J A P A N *

AOBA LIFE: Industry group to auction Aoba Life Insurance
ASAHI BANK: Rating firm downgrades 12 banks
BANK OF TOKYO-MITSUBISHI: Rating firm downgrades 12 banks
DAI-ICHI KANGYO BANK: Rating firm downgrades 12 banks
DAIWA BANK: Rating firm downgrades 12 banks

FUJI BANK: Rating firm downgrades 12 banks
HITACHI LIMITED: To see 100 Bln yen pretax loss in FY98
HOKKAIDO TAKUSHOKU: Banks pay retired board members
INDUSTRIAL BANK OF JAPAN: Rating firm downgrades 12 banks
LONG TERM CREDIT: Banks pay retired board members

NOMURA SECURITIES: Announce losses on Russian bonds
SAKURA BANK: Rating firm downgrades 12 banks
SANWA BANK: Rating firm downgrades 12 banks
SHARP CORPORATION: Moody's may downgrade rating
SUMITOMO BANK: Rating firm downgrades 12 banks

SUMITOMO TRUST & BANKING: Rating firm downgrades 12 banks
TOA STEEL: Will liquidate, transfer operations to NKK
TOKAI BANK: Rating firm downgrades 12 banks
YASUDA TRUST & BANKING: Rating firm downgrades 12 banks


* K O R E A *

DONGSHIN PHARMACEUTICAL: Company liquidation
KIA MOTORS: Ford still interested in Kia
KOREA FIRST BANK: Banks likely to be next on auction list
KUKJE CORPORATION: Kukje Corporation Is Insolvent
MANDO MACHINERY: Labor Strike Threatens Foreign Financing

NK ELECTRIC LINE: Applies for creditor reconciliation  
SEOUL BANK: Banks likely to be next on auction list


* M A L A Y S I A *

DELLOYD VENTURES BHD: Results announcement
KAMJUK HOUSING DEVELOPMENT SDN BHD: Winding-up petition
LEASING & CREDIT SERVICES SDN BHD: Voluntary winding-up
MASTER DISPLAY SDN BHD: Voluntary winding-up
SEOW MOH HOCK CARAMEL FACTORY SDN BHD: Winding-up petition

SIME BANK: Phileoallied likely to give up takeover attempt


* P H I L I P P I N E S *

CATHAY SECURITIES: Stock firm seeks voluntary suspension
CORRELL SECURITIES: Stock firm seeks voluntary suspension
GOLD LION TRANSPORT: Company files to dissolve business
PHILIPPINE AIRLINES: Huge net loss for PAL
QUARTER FASHION AND GARMENTS: To dissolve business


* S I N G A P O R E *

APOLLO ENTERPRISES: Results announcement


* T H A I L A N D *

UNITED COMMUNICATION: Family says Ucom stake not for sale


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

BIJOU FILMS (CHINA) LIMITED: Winding-up petition
------------------------------------------------
A petition for the winding up of  Bijou Films (China)
Limited was presented to the High Court on Aug 26 by    
Chen Li Zhou of 28th Floor, 200 Gloucester Road, Hong
Kong.The petition is directed to be heard before the court
at 9:30 on Sept 30. 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 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.


C & C COMPANY LIMITED: Winding-up petition
------------------------------------------
Notice is hereby given that a petition for the winding up
of C & C Company Limited by the High Court of Hong Kong
was, on the 18th day of August, 1998, presented to the said
Court by Kwong Chung Chi. The petition is scheduled to be
heard on 23rd of September, 1998. Creditors who support or
oppose the making of the order may appear at the time of
the hearing.  


DELUXE FASHIONS: Winding-up petition
------------------------------------
A petition for the winding up of Deluxe Fashions Limited  
was presented to the High Court on Aug 19 by Sze Yee Chung
of Room 611, Wang Hong House, Lok Fu Shopping Centre,
Kowloon. The petition is directed to be heard before the
court at 9:30 am on Sept 23. 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 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.


EHK SERVICES: In members' voluntary winding up
----------------------------------------------
The creditors of EHK Services Company Limited, which is
being voluntarily wound up, are required on or before
September 30 to send in their names, addresses and
particulars of their debts or claims as well as the names
and addresses of their solicitors (if any) to the
Liquidator of the said company, Stephen Man Cheung, at
Caroline Centre, 10th Floor, 28 Yun Ping Road, Causeway Bay,
Hong Kong and if so required by notice in writing from the
liquidators, are personally or by their solicitors to come
in and prove their debts or claims at such time and place
specified in such notice, or in default thereof, they will
be will be excluded from the benefit of any distribution
before such debts are proved.


GKC HOLDINGS: New writ served on Tang duo
-----------------------------------------
According to the SCMP, a writ has been filed by HT
Securities seeking to recoup $2.5 million from the Tang
brothers.

The writ says that the brothers, as directors of China
Investments Assets, were granted credit facilities under a
margin agreement with HT Securities on June 9 and $2.4
million was advanced to China Investment Assets the
following day.

On July 6, HT Securities requested full repayment of the
sum with interest. As of August 31, the sum owed amounted
to $2.5 million. HT Securities is seeking further interest
and costs.


GETEK INTERNATIONAL LIMITED: Winding-up petition
------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Getek International Limited by the High Court of Hong
Kong was, on the 24th day of August, 1998, presented to the
said Court by Yeung Kai Wah. The petition is scheduled to
be heard on 23rd of September, 1998. Creditors who support
or oppose the making of the order may appear at the time of
the hearing.  


JUSCO STORES (HK): Tough times forecast for Jusco Stores
--------------------------------------------------------
According to the SCMP, general merchandise chain Jusco
Stores (Hong Kong) is believed to have slipped into an
attributable loss in the six months ended August, hit by
worse-than-expected losses in two recently opened stores.

This would compare with a $28.99 million attributable
profit in the same period last year.

Sources said the Jusco outlets in Tse Wan Shan and Tseung
Kwan O, opened last year and early this year, had eroded
profits made by the other four outlets, which although
profitable, had seen profits slide 10 percent during the
period.

Jusco has been expanding aggressively since the liquidation
of Yaohan Department Stores last November, taking over
former Yaohan sites in Whampoa Garden, Hunghom and Tuen Mun
Town Plaza, Tuen Mun.


KAM LI MAN GARMENT MANUFACTORY: Winding-up petition
---------------------------------------------------
A petition for the winding up of Kam Li Man Garment
Manufactory Limited was presented to the High Court on
August 24 by Li Fuk Sing of Flat 127, Ground Floor, Block
14, Shek Kip Mei Estate, Kowloon. The petition is directed
to be heard before the court at 11:00 am on Sept 23. 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 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.


KWONG TAT JEWELLERY: Notice of members' meeting
-----------------------------------------------
A notice appeared in the Hong Kong Standard for a meeting
of members of Kwong Tat Jewellery Limited held at Room
2109, China Resources Building, 26 Harbour Road, Wanchai,
Hong Kong on Sept 11 at 3:00 pm.


MITSUKAWA CATERING GROUP LIMITED: Winding-up petition
-----------------------------------------------------
A petition for the winding up of  Mitsukawa Catering Group
Limited  was presented to the High Court on Aug 21 by Tsui
Yung Man of Room 1120, Kai Chun House, Choi Yiu Chuen, Kai
King, Kowloon. The petition is directed to be heard before
the court at 9:30 am on Sept 23. 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 Tam Lee Po Lin for Director of Legal
Aid, 27th Floor, Queensway Government Offices, 66 Queensway,
Hong Kong on payment of the regulated charges for the same.


WALLIE DEVELOPMENT: Winding-up petition
---------------------------------------
A petition for the winding up of Wallie Development Company
Limited was presented to the High Court on August 26 by
Give Wide Development Limited whose registered address is
situate at Room 903-4, Eight Commercial Tower, 8 Sun Yip
Street, Chaiwan, Hong Kong. The petition is directed to be
heard before the court at 11:00 am on Sept 16. Any creditor
or contributory of the said company desirous to support or
oppose the making of an order on the said petition may
appear at the time of hearing by himself or his counsel for
that purpose, and a copy of the petition will be furnished
to any creditor or contributory of the said company
requiring the same by the Solicitors for the Petitioner,
Messrs. Lau & Chan, 6th Floor, Kailey Tower, 14-16 Stanley
Street, Central, Hong Kong on payment of the regulated
charges for the same.


WHARF HOLDINGS: No provisions on sharply lower profits
------------------------------------------------------
The interim profit of Wharf Holdings, a Hong Kong listed
property company, has fallen 39% but the company has not
taken provisions against the falling value of its stock
market investments.

Analysts believe Wharf could be $4 billion overvalued on
its book. The company said the investments had lost value,
but they were long term holdings and the company saw no
need to make provisions at this stage.

Analysts said Wharf's stock portfolio at the end of last
year was valued at about HK$9 billion. Chairman Gonzaga Li
said the performance of Wharf's core business "affirmed the
management's vision of building assets and value has
remained on track."


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

GARUDA INDONESIA: Garuda to lay off 3,000 employees
---------------------------------------------------
According to the SCMP, cash-strapped Garuda Indonesia will
lay off at least 3,000 employees as early as next month in
an effort to survive the economic crisis.

The airline's president, Mr Robby Djohan, said that the
airline should have an average 170 staff members for each
aircraft. It now operates 52 aircraft, with 273 employees
per plane.

On Tuesday, Garuda said it would sell off a batch of
aircraft to help raise funds to stay afloat. All planes
other than those produced by Boeing and Airbus would be put
on sale. Garuda would sell 5 McDonnell Douglas DC-10s and
several Fokker F-28s for fresh funds. Its operations are
threatened by debt estimated at US$200 million.

The Hong Kong Standard also shows a report on the planned
lay-off, saying the airline plans to lay off of at least
3,000 of its nearly 13,000 workers.

The airline's president said that some workers might be
moved to Garuda subsidiaries or its maintenance facility at
Jakarta's international airport. However, Garuda plans to
sell the US$300 million facility as a cost-cutting measure.


=========
J A P A N  
=========

AOBA LIFE: Industry group to auction Aoba Life Insurance
--------------------------------------------------------
Nikkei reports the Life Insurance Association of Japan
decided Wednesday to auction off Aoba Life Insurance Co.,
sources at the industry group said.

The association holds the entire equity of Aoba, which took
over the life insurance contracts of failed Nissan Mutual
Life Insurance Co.

As many as seven foreign-capital life insurers, including
American International Group Inc., have contacted the
association, apparently as part of research on the business
prospects of Aoba. AIG has already begun a preliminary
examination of the company.

The association will offer some information on Aoba's
operations to potential buyers on a nondisclosure basis. It
will then examine their business plans for Aoba, hoping to
complete an eligibility examination within this month, the
sources added.

Bidders who pass this hurdle will be offered more detailed
management data on Aoba, but no information on individual
policyholders will be disclosed.

Bids for the life insurance firm will be invited in
October, and the association hopes to select a buyer as
early as November. The association will not decide the
buyer solely on a financial basis, but will look at each
bidder's policies on protection of policyholders,
employment and other factors.


ASAHI BANK: Rating firm downgrades 12 banks
-------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Asahi Bank was downgraded from A+ to A.


BANK OF TOKYO-MITSUBISHI: Rating firm downgrades 12 banks
---------------------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Bank of Tokyo-Mitsubishi was downgraded from AA+ to AA-.


DAI-ICHI KANGYO BANK: Rating firm downgrades 12 banks
-----------------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Dai-Ichi Kangyo Bank was downgraded from AA- to A+.


DAIWA BANK: Rating firm downgrades 12 banks
-------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Daiwa Bank was downgraded from BBB+ to BBB-.


FUJI BANK: Rating firm downgrades 12 banks
------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Fuji Bank was downgraded from AA- to A.


HITACHI LIMITED: To see 100 Bln yen pretax loss in FY98
-------------------------------------------------------
Nikkei reports Hitachi Ltd. will likely show a pretax loss
of more than 100 billion yen for the current fiscal term
through March, company sources said Wednesday.

For the first time, Japan's largest maker of electric
machinery will post red ink for a full fiscal year, forcing
a personnel cut of 3,000 to 4,000 (from the current 71,000)
and a drastic restructuring to narrow focus to selected
areas.

April-August sales are estimated to have fallen short of
the year-earlier level by at least 10%. Relying on the
domestic market for 70% or more of its sales, Hitachi has
been hit hard by slow capital investment and sluggish
consumption. An emphasis on exports to Southeast Asia has
also left the firm exposed to economic turmoil in that
region.

Hitachi will likely post a pretax loss of more than 50
billion yen for the April-September half, forcing it to
revise downward an earlier projection of 30 billion yen
pretax profit for the full fiscal 1998. The company will
also likely show a consolidated net loss.


HOKKAIDO TAKUSHOKU: Banks pay retired board members
---------------------------------------------------
Kyodo News reports Japan's 20 biggest banks paid a total of
85.5 billion yen in retirement allowances to board
directors who have left the banks during the past six
years, according to a government report Wednesday.

The report, submitted by the Financial Supervisory Agency
to a Diet panel, says that 10 city banks including the
collapsed Hokkaido Takushoku Bank paid an average of 97.71
million yen to each retired board member, three long-term  
credit banks paid 97.61 million yen, and seven trust banks
paid 54.69 million yen.

The disclosure could fuel public criticism of a government
plan to inject taxpayers' money into the ailing Long-Term
Credit Bank of Japan, plunging the  government into even
hotter water as it tries to convince the opposition camp  
to retain a 13 trillion yen bank-recapitalization scheme,
financial analysts said.


INDUSTRIAL BANK OF JAPAN: Rating firm downgrades 12 banks
---------------------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Industrial Bank of Japan was downgraded from AA to A+.


LONG TERM CREDIT: Banks pay retired board members
-------------------------------------------------
Kyodo News reports Japan's 20 biggest banks paid a total of
85.5 billion yen in retirement allowances to board
directors who have left the banks during the past six
years, according to a government report Wednesday.

The report, submitted by the Financial Supervisory Agency
to a Diet panel, says that 10 city banks including the
collapsed Hokkaido Takushoku Bank paid an average of 97.71
million yen to each retired board member, three long-term  
credit banks paid 97.61 million yen, and seven trust banks
paid 54.69 million yen.

The disclosure could fuel public criticism of a government
plan to inject taxpayers' money into the ailing Long-Term
Credit Bank of Japan, plunging the government into even
hotter water as it tries to convince the opposition camp  
to retain a 13 trillion yen bank-recapitalization scheme,
financial analysts said.

The fate of the recapitalization plan is at stake as the
government is seeking opposition support for a package of
six financial system-stabilization bills with the two major
opposition parties demanding abolition of the scheme.

Binsuke Sugiura, former LTCB president, has agreed to
return the after-tax portion of his 930 million yen
retirement allowance amid heated Diet debate on the plan to
inject public funds into the ailing bank, financial sources
earlier said.

Meanwhile, the Associated Press reports Wednesday the head
of Japan's largest opposition party has signaled his
support for a controversial government proposal to prop up
troubled
Japanese banks with taxpayer funds, a major daily reported
Wednesday.

Naoto Kan, leader of the Democratic Party of Japan, said in
an interview published by the Mainichi newspaper that his
party won't block a plan to inject public funds into sickly
banks as long as the banks fully disclose the extent of
their financial woes.


NOMURA SECURITIES: Announce losses on Russian bonds
---------------------------------------------------
Nomura Securities' branches in US and Britain suffered
combined losses of US$350 million on Russian bonds at the
end of August, official said yesterday.

The Russian economic woes sent government bond prices
lower, forcing Nomura International in London and Nomura
Holdings America in New York to suffer book losses, the
official said. But the losses were unlikely to affect the
activities of the parent company or subsidiaries as the
Nomura group's consolidated capital amounts to 1,797
billion yen.  


SAKURA BANK: Rating firm downgrades 12 banks
--------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Sakura Bank was downgraded from A to A-.


SANWA BANK: Rating firm downgrades 12 banks
-------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Sanwa Bank was downgraded from AA to AA-.


SHARP CORPORATION: Moody's may downgrade rating
-----------------------------------------------
Moody`s Investors Service said yesterday it may cut its
rating for Japan's Sharp Corp, due to the economic slump
and troubles in the electronic market. Moody's said it put
on review for possible downgrade its upper medium grade A1
rating for Sharp's senior unsecured debt.

Moody's explained that the sluggish demand and severe price
competition in the consumer markets would hurt Sharp's debt
protection measures and Sharp would also suffer from poor
consumer demand in Japan.


SUMITOMO BANK: Rating firm downgrades 12 banks
----------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Sumitomo Bank was downgraded from AA to AA-.


SUMITOMO TRUST & BANKING: Rating firm downgrades 12 banks
---------------------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Sumitomo Trust & Banking was downgraded from A+ to A-.


TOA STEEL: Will liquidate, transfer operations to NKK
-----------------------------------------------------
According to a Kyodo News report, Toa Steel Co., Japan's
second-largest electric-furnace steelmaker, has decided to
liquidate the company and hand over most of its assets,
operations and workers to a company to be set up by its
parent NKK Corp., Toa and NKK sources said Thursday.

Toa will convene an extraordinary board meeting Thursday
night to formally approve the dissolution decision, the
sources said.

Toa and NKK plans to hold a press conference at 10 p.m.
(1300 GMT) Thursday at the Tokyo Stock Exchange.

The extent of Toa's liabilities were not immediately known,
but industry sources estimate the amount at 260 billion
yen.

This would make Toa the largest manufacturer to go bankrupt
in terms of liabilities in Japan's postwar history,
exceeding that of Mita Industrial Co.,  a photocopier maker
that filed for court protection from creditors last month.

The Toa and NKK sources said NKK is planning to establish a
new wholly owned subsidiary and have it take over part of
Toa's production facilities, workers and other assets
following its dissolution.

NKK owns 51.5% of Toa, which employs 1,400 people.

Earlier this year, NKK boosted its equity stake in Toa from
36 % to 51.5% to help support Toa's rehabilitation efforts.

According to Teikoku Databank, a leading credit research
company, NKK plans to report an extraordinary loss of more
than 50 billion yen in the current fiscal year, ending
March 31, 1999, due to the liquidation of Toa.

Toa was established by the merger of Azuma Steel and Toshin
Steel -- both NKK subsidiaries -- in October 1987, and has
diversified its product lines since then.

But the company has been burdened by interest payments on
loans it took out for capital investment for production
facilities.

Toa marked the fourth consecutive year of unconsolidated
pretax losses in fiscal 1997, which ended March 31, 1998,
with a pretax loss of 24.03 billion yen in the year on
sales of 131.19 billion yen.

On Thursday afternoon, the Tokyo Stock Exchange (TSE)
halted trading in the shares of Toa and NKK, both listed on
the First Section, to confirm reports of Toa's liquidation.


TOKAI BANK: Rating firm downgrades 12 banks
-------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Tokai Bank was downgraded from A+ to A.


YASUDA TRUST & BANKING: Rating firm downgrades 12 banks
-------------------------------------------------------
The Asian Wall Street Journal reported that the Japan
Rating & Investment Information Inc. has downgraded the
senior long-term debt ratings of 12 Japanese banks. The
downgrades reportedly incorporate several factors
including most significantly the banks' worsening asset
quality and their weakening ability to write off bad debts.  
Yasuda Trust & Banking was downgraded from BBB to BBB-.


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

DONGSHIN PHARMACEUTICAL: Company liquidation
--------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief Section, the Dongshin Pharmaceutical Company applied
for approval of its liquidation plan by the Seoul District
court.


KIA MOTORS: Ford still interested in Kia
----------------------------------------
The SCMP says that creditors of Kia Motors are likely to
allow the bankrupt car maker to write off some of its debt
when they open a second round of bidding. The economic
adviser to President Kim Dae-jung said that although this
is still speculation, he does not think it is realistic to
stick to the no write-off position as Korea Development
Bank had thought before the first round of bidding flopped.

According to the Hong Kong Standard, Ford Motor said
Tuesday it remains interested in buying Kia Motors and its
affiliate Asia Motors, but the firm's debt must be trimmed
first.


KOREA FIRST BANK: Banks likely to be next on auction list
---------------------------------------------------------
The SCMP says that Korea First Bank or Seoul Bank will be
put up for sale in an international auction next month in
the latest attempt to shore up the nation's ailing banking
system. The government is negotiating terms with Morgan
Stanley Dean Witter.

The Financial and Supervisory Commission aims to find
buyers by the end of next month.

Analysts said the sale might fail unless the government
provides fresh cash. The government has already added 1.5
trillion won to each of the two banks to meet Bank for
International Settlements standards.


KUKJE CORPORATION: Kukje Corporation Is Insolvent
-------------------------------------------------
The Korea Herald reported that a leading sneaker maker,
Kukje Corporation, went insolvent on September 1 when it
was unable to pay bills totaling 19.6 billion won. The
Korea First Bank, which is the main creditor bank of the
Company, is reportedly treating Kukje as a company passing
"bad bills."

Korea First lent Kukje 50 billion won at the end of last
year in an attempt to help the company over its financial
difficulties.  

Kukje is expected to ask for court receivership. Kukje
Corporation is a member of the Hanil Group.


MANDO MACHINERY: Labor Strike Threatens Foreign Financing
---------------------------------------------------------
The Korea Times reported that the ongoing strike at Mando
Machinery, Korea's largest automotive parts producer, is
threatening project financing worth $1 billion by Rothchild
Inc. of the United States. Mando is a leading subsidiary of
the Halla Group, which declared bankruptcy at the end of
last year. Although Mando is reported to be relatively
healthy, according to the Korea Times it has provided huge
repayment guarantees to other debt ridden Halla affiliates.  

In March, Rothchild announced it was making a bridge loan
to help Mando get through some rough spots. However, so far
only half of the promised $40 million in operational funds
has been delivered. Business sources cited in the Korea
Times said that Mr. Wilber Ross, Rothschild's managing
director who instrumental in arranging the bridge loans,
has been asking both the government and other sources about
developments on the strike. He has been increasing the
frequency of his trips to Seoul, and has been meeting
senior government officials and business sources to check
into Mando's status.  

The strike, triggered by a management announcement that the
company has 1,090 excess personnel, has been going on for
two weeks and has paralyzed most manufacturing activities
at Mando.

A Reuters report says riot police stormed all six of Mando
Machinery Corp's plants at dawn on Thursday to put an end
to union strikes against layoff plans.

Following the police storming, Mando's president expressed
regret over the incident. He also promised to normalise
operations at the auto parts maker as soon as possible.

The Reuters reports goes on to say that a Mando spokesman
said officials from Rothschild had met South Korean
government officials earlier this week to ask about the
labour problems.

But neither Rothschild nor Mando had requested government
intervention to end the strike, the spokesman said.


NK ELECTRIC LINE: Applies for creditor reconciliation  
-----------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief Section, the NK Electric Line Company, an affiliate
of the NK Telecom Company, applied for a creditor
reconciliation procedure at the Suwon District Court.


SEOUL BANK: Banks likely to be next on auction list
---------------------------------------------------
The SCMP says that Korea First Bank or Seoul Bank will be
put up for sale in an international auction next month in
the latest attempt to shore up the nation's ailing banking
system. The government is negotiating terms with Morgan
Stanley Dean Witter.

The Financial and Supervisory Commission aims to find
buyers by the end of next month.

Analysts said the sale might fail unless the government
provides fresh cash. The government has already added 1.5
trillion won to each of the two banks to meet Bank for
International Settlements standards.


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

DELLOYD VENTURES BHD: Results announcement
------------------------------------------
Delloyd Ventures Bhd (listed in the KLSE), reported a 86%
drop in operating profit before tax to RM2.59mil for the 6
months ended 30/6/98, compared to RM18.3mil previously.

The availability of interest income had helped the group to
offset operating loss incurred by most of its subsidiaries.

The lower turnover was attributed to the adverse effect the
economy has on the automotive sector, which is the group's
core business.

The group's results for the second half of 1998 were
unlikely to improve to any significant extent in view of
the economic outlook.


KAMJUK HOUSING DEVELOPMENT SDN BHD: Winding-up petition
-------------------------------------------------------
Public Bank Bhd on 30/6/98 petitioned for the winding-up of
Kamjuk Housing Development Sdn Bhd. The petition is
directed to be heard on 16/10/98.


LEASING & CREDIT SERVICES SDN BHD: Voluntary winding-up
-------------------------------------------------------
The members of Leasing & Credit Services Sdn Bhd on 28/8/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
3/10/98.


MASTER DISPLAY SDN BHD: Voluntary winding-up
--------------------------------------------
The members of Master Display Sdn Bhd on 28/8/98 resolved
to wind-up the company voluntarily.


SEOW MOH HOCK CARAMEL FACTORY SDN BHD: Winding-up petition
----------------------------------------------------------
United Malayan Banking Corporation Bhd on 11/8/98
petitioned for the winding-up of Seow Moh Hock Caramel
Factory Sdn Bhd.


SIME BANK: Phileoallied likely to give up takeover attempt
----------------------------------------------------------
Phileoallied Bhd is expected to give up its white knight
role to aid Rashid Hussain in its protracted attempt to buy
troubled Sime Bank, sources said.

Danamodal -- the government vehicle set up recently to help
recapitalise the banking sector -- is now expected to
provide the one billion Malaysian ringgit (S$459.5 million)
to Mr Rashid's RHB Bank. If successful, it will be
Danamodal's maiden deal to revitalise the cash-strapped
banking sector. The body is expected to raise RM16 billion
eventually.

A source said PhileoAllied's plan may have been scuttled by
its own recapitalisation plans. In May, the group unveiled
a dismal set of results with its latest non-performing
loans ratio at 13.3 per cent -- higher than the then
industry average of 9.3 per cent.

For the year ended Jan 31, it made a group pre-tax loss of
RM62.6 million against a pre-tax profit of RM73.95 million
last year. Its subsidiary, PhileoAllied Bank, registered a
pre-tax loss of RM64 million compared to a pre-tax profit
of RM35 million last year.

Signs of a change in funding plan emerged earlier this week
when Sime Darby Bhd said the completion of the sale of its
stake in Sime Bank Bhd to RHB Bank Bhd has been deferred to
Nov 30 from the initial Sept 6 deadline.


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

CATHAY SECURITIES: Stock firm seeks voluntary suspension
--------------------------------------------------------
Two securities firms are taking advantage of the temporary
relief offered by the Philippine Stock Exchange (PSE) to
local brokerage houses suffering from the lackluster
trading activity.

Applying for voluntary suspension are Correll Securities,
Inc. and Cathay Securities Company, Inc.

Under PSE rules, the two houses will have to undergo an
audit before the exchange will approve their application
for temporary suspension of operations.

PSE recently announced it will allow brokerage houses to
temporarily suspend operations to help them survive the
Asian contagion. Under the scheme, a brokerage firm will be
allowed to merge with another PSE member broker --  
preferably in a better financial standing -- allowing it to
withstand the crisis.

But while in hibernation, the inactive broker will not lose
its PSE membership seat and brokerage license. Also, the
inactive broker will be allowed to continue its trading
activity by piggy-backing on the trading activity of the
active member.


CORRELL SECURITIES: Stock firm seeks voluntary suspension
---------------------------------------------------------
Two securities firms are taking advantage of the temporary
relief offered by the Philippine Stock Exchange (PSE) to
local brokerage houses suffering from the lackluster
trading activity.

Applying for voluntary suspension are Correll Securities,
Inc. and Cathay Securities Company, Inc.

Under PSE rules, the two houses will have to undergo an
audit before the exchange will approve their application
for temporary suspension of operations.

PSE recently announced it will allow brokerage houses to
temporarily suspend operations to help them survive the
Asian contagion. Under the scheme, a brokerage firm will be
allowed to merge with another PSE member broker --  
preferably in a better financial standing -- allowing it to
withstand the crisis.

But while in hibernation, the inactive broker will not lose
its PSE membership seat and brokerage license. Also, the
inactive broker will be allowed to continue its trading
activity by piggy-backing on the trading activity of the
active member.


GOLD LION TRANSPORT: Company files to dissolve business
-------------------------------------------------------
BusinessWorld reports a medium-sized firm has asked the
Securities and Exchange Commission (SEC) to allow the
dissolution of its operations, as it experiences
difficulties in meeting obligations to creditors.

Bus and taxi operator Gold Lion Transport Corp. recently
filed an application for dissolution. Gold Lion said its
total liabilities amounts to 5.84 million Philippine pesos
(PhP).


PHILIPPINE AIRLINES: Huge net loss for PAL
------------------------------------------
The Hong Kong Standard says that PAL posted a wider net
loss of 2.21 billion pesos in its first quarter, to end of
June, compared with 503 million pesos a year earlier.
Revenues for the quarter also plunged to 7.67 billion pesos
versus the year-ago 8.97 billion pesos, brought on by the
three-week pilots' strike in June. PAL's fiscal year ends
on March 31. In June, 69 percent of the scheduled flights
were unable to operate because of the pilots' strike, PAL
said.


QUARTER FASHION AND GARMENTS: To dissolve business
--------------------------------------------------
BusinessWorld reports a medium-sized firm has asked the
Securities and Exchange Commission (SEC) to allow the
dissolution of its operations, as it experiences
difficulties in meeting obligations to creditors.

Garment manufacturer and exporter Quarter Fashion and
Garments Corp. recently filed an application for
dissolution. Quarter Fashion admits it was forced to seek a
voluntary dissolution of its operations and its assets,
saying it could no longer meet its obligations to its
creditors.

As of its latest count, Quarter Fashion said its
liabilities amount to PhP31.78 million. Among its biggest
creditors are Philtrust Bank, which it owes PhP16.44
million; Traders Royal Bank, PhP1.77 million; Far East Bank
& Trust Co., PhP5.1 million; Planters Bank, PhP3.84
million; Land Bank of the Philippines Leasing Corp.,
PhP606,017.49; and a certain Felix Lopez, who extended some
PhP1.2 million to the firm.


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

APOLLO ENTERPRISES: Results announcement
----------------------------------------
Apollo Enterprises yesterday reported an interim loss of
$2.88 million for the six months ended June 30, 1998, up
sharply from the $978,000 loss sustained in the previous
corresponding period.

Group turnover for the half-year dipped 17.3 per cent to
$23.5 million. However, there was a $2.18 million gain from
investment income and a $42,000 profit from other income,
including interest income.

Apollo directors said the group's performance was affected
by the regional economic crisis and declines in visitor
arrivals and hotel food and beverage revenue.

Apollo's bottomline was diluted by a 74.5 per cent jump in
interest on borrowings to $4.55 million. Depreciation and
amortisation dipped 1.8 per cent to $4.83 million.

Losses per share on a fully diluted basis jumped from 0.31
cent previously to 1.19 cents. Net tangible asset backing
per ordinary share slipped 2.9 per cent to $1.33.


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

UNITED COMMUNICATION: Family says Ucom stake not for sale
---------------------------------------------------------
According to the Bangkok Post, the Bencharongkul family has
ruled out ever selling its 40% stake in the United
Communication Industry Group (Ucom), no matter who is the
potential buyer, the executive vice-president of the group,
Vichai Bencharongkul, said yesterday.

Mr Vichai's announcement was made at a press briefing to
clarify the sale of Ucom's shares by its long-time
strategic partner Motorola Inc of the United States.
Motorola and Ucom hold a 25% stake each in World Telecom
Holding, which in turn holds a 50.97% stake in Ucom.

Mr Vichai said although Motorola had sold all of its shares
in Ucom, "our relations remains unchanged".

He could not say why Motorola decided to sell its stake at
a very low price, but believed Motorola may have wanted to
prepare itself for the restructuring of Ucom's debts.

He said the new buyer, British investment firm Somers Ltd,
had not requested a seat of the Ucom board and therefore
would have little impact on Ucom's management and service.
He said the expectation that Thai economy would recover
soon may have prompted the British investment firm to enter
the telecom business.
  

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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