/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/980914.MBXT R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, September 14, 1998, Vol. 1, No. 142 Headlines * C H I N A & H O N G K O N G * AMERICAN FURNITURE LIMITED: Notice of intended dividend ANDER HOLDINGS: In members' voluntary liquidation BEST CENTURY HOLDINGS LIMITED: Winding-up petition BOGETTA COMPANY LIMITED: In members' voluntary liquidation BROAD UNIVERSAL LIMITED: Winding-up petition CAPITAL SUCCESS INVESTMENT LIMITED: Winding-up petition CHAMBERS GROUP: In members' voluntary liquidation CLIMAX INTERNATIONAL: Seeks extension for proposal (EKIHOU) LEE'S KANPO YAKU: Winding-up petition ETERNAL ENGINEERING LIMITED: Winding-up petition FIRST PACIFIC: Disposals leave doubts on plans GRANDWIDE INVESTMENT LIMITED: Winding-up petition HUNG LI SANG KEE CONSTRUCTION: Winding-up petition JAPAN UNIVERSAL SECURITIES: Notice to creditors KJS LIMITED: In members' voluntary liquidation LAI SUN DEVELOPMENT: Lai Sun cuts 35% from Tai Po prices LEIGHTON INTERNATIONAL LIMITED: Winding-up petition NEPTUNE CONSULTANTS: In members' voluntary liquidation OCEAN HORIZON LIMITED: Winding-up petition PROFA STUDIO COMPANY LIMITED: Notice of final dividend REXTOR ENTERPRISES: In members' voluntary liquidation RHINE HOLDINGS: Liquidation announcement ROSEHILL CONSULTANT: In members' voluntary liquidation TOMSON PACIFIC: Memory fails investigator in trial ULTRASONIC INDUSTRIAL COMPANY LIMITED: Winding-up petition * I N D O N E S I A * SEMEN GRESIK: Fresh bid for cement stake * J A P A N * FUJI BANK: To release self-assessment of loan portfolio FUJITSU LIMITED: Projects 35% decline in midterm net profit LONG TERM CREDIT: S&P lowers LTCB's long-term debt MARUBENI CORPORATION: Moody's downgrades long-term rating NISSHO IWAI CORP: Moody's downgrades Nissho Iwai * K O R E A * CHEIL PRECISION: Starts liquidation procedure HYUNDAE MACHINERY: Hyundae Machinery Co. liquidates KIA MOTORS: Kia write-offs sweeten pot for suitor quartet LG GROUP: Wants say in semicon deal with Hyundai KOOKMIN BANK: To merge with Korea Long Term Credit KOREA LONG TERM CREDIT: To merge with Kookmin Bank SAMSUNG ELECTRONICS: To issue bonds worth US$751 million TAEHAN TOURISM DEVELOPMENT: Taehan Tourism liquidates * M A L A Y S I A * AYAM MANJUNG PROCESSING SDN BHD: Winding-up petition CHESTERTON INTERNATIONAL: Winding-up petition DISPOPAK PACKAGING SDN BHD: Winding-up petition LIEN HOE CORP: Seeks extension on loan stock MENTARI COMMUNICATIONS SDN BHD: Winding-up petition NILAI ELIT (M) SDN BHD: Voluntary liquidation PURNAMA EDARAN KUANTAN SDN BHD: Winding-up petition TETKIM HOLDINGS SDN BHD: Voluntary winding up TIME TELEKOM: TRI in talks to aquire Time Telekom TONGKAH HOLDINGS: Restructuring includes Asia Connect sale * P H I L I P P I N E S * PHILIPPINE AIRLINES: Segregation of PAL debts suggested PRATRIUM HOLDINGS: SEC extends debt reprieve of firm VICTORIAS MILLING: Investors show interest in Victorias * T H A I L A N D * BANK OF AYUDHYA: To issue debentures when time is right PHATRA THANAKIT PCL: TFB reports on securities purchase SLC LEASING: Loses legal round to US insurer SAMART TELCOMS: Confident it can repay B2.4bn loan THAI TANK TERMINAL: NPC directors grant loan to TTT ================================= C H I N A & H O N G K O N G ================================= AMERICAN FURNITURE LIMITED: Notice of intended dividend ------------------------------------------------------- A Notice of Intended dividend in Companies' Winding up Proceedings appeared in the Hong Kong Standard for American Furniture Limited. The last day for receiving proofs is September 19. The registered office is 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong and the official receiver and provisional liquidator is A.R. Hearder. ANDER HOLDINGS: In members' voluntary liquidation ------------------------------------------------- The creditors of Ander Holdings Limited, which is being voluntarily wound up, are required on or before Oct 5 to send in their names, addresses and particulars of their debts or claims to the Liquidators of the said company, Peter Richard Andrew Knott, 46th Floor, Jardine House, 1 Connaught Place, Centre, 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 excluded from the benefit of any distribution before such debts are proved. BEST CENTURY HOLDINGS LIMITED: Winding-up petition -------------------------------------------------- Notice is hereby given that a petition for the winding-up of Best Century Holdings Limited by the High Court of Hong Kong was, on the 27th day of August, 1998, presented to the said Court by Lee Yip Hing and the petition is heard on 30th of September, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. BOGETTA COMPANY LIMITED: In members' voluntary liquidation ---------------------------------------------------------- The creditors of Bogetta Company Limited, which is being voluntarily wound up, are required on or before Oct 5 to send in their names, addresses and particulars of their debts or claims to the Liquidators of the said company, Johnny Sai-Chun Ng, Joint and Several Liquidator 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 excluded from the benefit of any distribution before such debts are proved. BROAD UNIVERSAL LIMITED: Winding-up petition -------------------------------------------- Notice is hereby given that a petition for the winding-up of Broad Universal Limited by the High Court of Hong Kong was, on the 1st day of September, 1998, presented to the said Court by Poon Tak Shing and the petition is heard on 7th of October, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. CAPITAL SUCCESS INVESTMENT LIMITED: Winding-up petition ------------------------------------------------------- Notice is hereby given that a petition for the winding-up of Capital Success Investment Limited by the High Court of Hong Kong was, on the 31st day of August, 1998, presented to the said Court by Yip Wai Toe and the petition is heard on 7th of October, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. CHAMBERS GROUP: In members' voluntary liquidation ------------------------------------------------- The creditors of Chambers Group Limited, which is being voluntarily wound up, are required on or before Oct 5 to send in their names, addresses and particulars of their debts or claims to the Liquidators of the said company, Peter Richard Andrew Knott, 46th Floor, Jardine House, 1 Connaught Place, Centre, 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 excluded from the benefit of any distribution before such debts are proved. CLIMAX INTERNATIONAL: Seeks extension for proposal -------------------------------------------------- Climax International Company Limited, United Pacific Industries and Selma Limited have informed the Stock Exchange of Hong Kong that Climax is seeking from its Banks a further time extension for submitting the Refinancing Proposal. Pending the Banks' approval of the Request for Further Extension, the Parties have agreed to further extend the time limit for the fulfillment of the Condition stipulated in the Agreement to the same date as the Banks will approve in respect of the Request for Further Extension. The Request for Further Extension for submission of the Refinancing Proposal is necessary in light of the information contained in Climax's annual results announcement dated 21st August, 1998. As set out in the Announcement, Climax had agreed with its Banks that the finalisation of the Refinancing Proposal be extended until the expiry of two weeks after the computation of the consolidated net tangible asset of the Climax group as at 31st March, 1998 has been definitely completed, which is expected to be upon completion of the statutory audit of Climax. Following Climax's Results Announcement made on 21st August, 1998, the Original Expiry Date was, therefore, the 4th September, 1998. Further, the Parties had agreed to further extend the time limit for fulfillment of the Condition stipulated in the Agreement to the Original Expiry Date. The Parties now wish to announce that the terms of the Refinancing Proposal are still in the process of being finalized and, in this respect, Climax is awaiting approval of the Request for Further Extension from all its Banks. The Banks are still in the process of deliberating on the Request for Further Extension and Climax has not received any indication from the Banks that the Request for Further Extension will not be approved. In view of the foregoing, the Parties have also agreed to further extend the time limit for fulfillment of the Condition stipulated in the Agreement to the Proposed New Expiry Date. The Proposed New Expiry Date has not yet been determined. (EKIHOU) LEE'S KANPO YAKU: Winding-up petition ---------------------------------------------- Notice is hereby given that a petition for the winding-up of (EkiHou) Lee's Kanpo Yaku & Acupuncture Limited by the High Court of Hong Kong was, on the 4th day of September, 1998, presented to the said Court by Yeung Mut Lee and the petition is heard on 14th of October, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. ETERNAL ENGINEERING LIMITED: Winding-up petition ------------------------------------------------ Notice is hereby given that a petition for the winding-up of Eternal Engineering Limited by the High Court of Hong Kong was, on the 21st day of August, 1998, presented to the said Court by Tam Ka Kwong and the petition is heard on 23rd of September, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. FIRST PACIFIC: Disposals leave doubts on plans ---------------------------------------------- According to the SCMP, First Pacific's interim earnings report will be watched more for hints from management of what lies ahead rather than for the actual figures. Analysts said First Pacific would report between HK$4.8 billion to HK$5.2 billion in attributable earnings for the first six months, up almost 500 per cent year on year on exceptional gains, mostly from the sale of Dutch trading arm Hagemeyer. First Pacific also disposed of its stakes in Pacific Link, United Commercial Bank and San Miguel Corp in the first six months of the year. Its debts have been pared down to "a very low gearing of 5 per cent", an analyst said. The company's remaining holdings consisted principally of Philippines investment subsidiary Metro Pacific and a spattering of smaller investments across the region, analysts said. First Pacific has announced its intent in regard to two companies, a Thai plastic-container firm, Strithai Superware, and Indonesian noodle-maker Indofood. Strithai's creditors have yet to agree to a deal, and analysts said they were wary about a potential Indofood deal, since that company was struggling under debt and was controlled by the Salim Group, also First Pacific's majority shareholder. GRANDWIDE INVESTMENT LIMITED: Winding-up petition ------------------------------------------------- Notice is hereby given that a petition for the winding-up of Grandwide Investment Limited by the High Court of Hong Kong was, on the 31st day of August, 1998, presented to the said Court by Wong Kam Ling and the petition is heard on 7th of October, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. HUNG LI SANG KEE CONSTRUCTION: Winding-up petition -------------------------------------------------- A petition for the winding up of Hung Li Sang Kee Construction Company Limited was presented to the High Court on Aug 21 by Ng Chi Cheung of Room B1909, King Wah House, Shan King Estate, Tuen Mun, New Territories, 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 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. JAPAN UNIVERSAL SECURITIES: Notice to creditors ----------------------------------------------- The creditors of Japan Universal Securities (HK) Limited, which is being voluntarily wound up, are required on or before September 18 to send in their names, addresses and particulars of their debts or claims to the Liquidator of the said company, John J. Toohey, David Ng, at 21st Floor, Wing On Centre, 111 Connaught Road Central, 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 excluded from the benefit of any distribution declared before such debts are proved. KJS LIMITED: In members' voluntary liquidation ---------------------------------------------- The creditors of KJS Limited, which is being voluntarily wound up, are required on or before Oct 8 to send in their names, addresses and particulars of their debts or claims to the Joint and Several Liquidator of the said company, Betty Bik-Yuen Yeung 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 excluded from the benefit of any distribution before such debts are proved. LAI SUN DEVELOPMENT: Lai Sun cuts 35% from Tai Po prices -------------------------------------------------------- According to the SCMP, Lai Sun Development is to release 20 houses at its jointly owned Tycoon Place development in Tai Po for between $10 million and $14 million each, at a price of $4,056 per square foot, or 35.2 percent below the original price of $6,255 per square foot announced in May. Lai Sun director Julius Lau Shu-yan yesterday said the reduction in prices of Tycoon Place would result in the development making a loss as total costs of the project were about $6,000 per square foot. According to the Hong Kong Standard, Lai Sun has been disposing its assets since last year to improve its cash flow. Mr Lau said the Tycoon Place project would raise about $1.6 billion in cash if all units are sold. As of yesterday, 17 out of the 84 houses on offer were sold. Only three out of the 17 deals have been completed, but Mr Lau said the number of defaults was minimal. His optimism was echoed by Frank Marriott, managing director of FPD Realty who said that as soon as the price hits a certain level, people will go in as a result of pent-up demand over the past 16 months, the depth and liquidity in Hong Kong and the realisation that prices are now approaching five-year lows. LEIGHTON INTERNATIONAL LIMITED: Winding-up petition --------------------------------------------------- Notice is hereby given that a petition for the winding-up of Leighton International Limited by the High Court of Hong Kong was, on the 31st day of August, 1998, presented to the said Court by Chu Keung and the petition is heard on 7th of October, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. NEPTUNE CONSULTANTS: In members' voluntary liquidation ------------------------------------------------------ The creditors of Neptune Consultants Limited, which is being voluntarily wound up, are required on or before Oct 5 to send in their names, addresses and particulars of their debts or claims to the Liquidators of the said company, Peter Richard Andrew Knott, 46th Floor, Jardine House, 1 Connaught Place, Centre, 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 excluded from the benefit of any distribution before such debts are proved. OCEAN HORIZON LIMITED: Winding-up petition ------------------------------------------ Notice is hereby given that a petition for the winding-up of Ocean Horizon Limited by the High Court of Hong Kong was, on the 31st day of August, 1998, presented to the said Court by Tsui Kam Wah and the petition is heard on 7th of October, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. PROFA STUDIO COMPANY LIMITED: Notice of final dividend ------------------------------------------------------ A notice appeared in the Hong Kong Standard for Profa Studio Company Limited (in liquidation) for a first and final dividend of 21.50% payable on Sept 4. The liquidators' names and address are Matthew Finbarr O'Driscoll, Thomas Brian Stevenson and Wilfred Keith Timso, 15th floor, Hutchison House, 10 Harcourt Road, Central, Hong Kong. REXTOR ENTERPRISES: In members' voluntary liquidation ----------------------------------------------------- The creditors of Rextor Enterprises Limited, which is being voluntarily wound up, are required on or before Oct 5 to send in their names, addresses and particulars of their debts or claims to the Liquidators of the said company, Peter Richard Andrew Knott, 46th Floor, Jardine House, 1 Connaught Place, Centre, 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 excluded from the benefit of any distribution before such debts are proved. RHINE HOLDINGS: Liquidation announcement ---------------------------------------- Mr. Kennic Lai Hang Lui, the Joint and Several Agent of the Official Receiver and Provisional Liquidator of Rhine Holdings Limited, has informed the Stock Exchange of Hong Kong that on 2 September 1998 Rhine Holdings Limited, listing code 456, was placed into compulsory liquidation, together with its subsidiary Rhine Jewellery Limited by orders of the High Court of Hong Kong. The Official Receiver has been appointed provisional liquidator of both companies and on the same day appointed Kennic Lai Hang Lui and Lauren Wu Lau of the Corporate Reconstruction Department of Accountants Kennic L. H. Lui & Co. as his agents in both cases. Shareholders will be notified of any future meeting in due course. ROSEHILL CONSULTANT: In members' voluntary liquidation ------------------------------------------------------ The creditors of Rosehill Consultant Limited, which is being voluntarily wound up, are required on or before Oct 5 to send in their names, addresses and particulars of their debts or claims to the Liquidators of the said company, Peter Richard Andrew Knott, 46th Floor, Jardine House, 1 Connaught Place, Centre, 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 excluded from the benefit of any distribution before such debts are proved. TOMSON PACIFIC: Memory fails investigator in trial -------------------------------------------------- According to the SCMP, a former graft inspector was asked yesterday to scan police files for missing details surrounding the probe of fraud suspect Arthur Lai Cheuk- kwan. Chief Inspector Chung was yesterday unable to recall exact details of when the CCB first questioned three of the defendants - stockbroker Arthur Lai, his brother Raymond Lai Chik-fan and Peter Mou Chi-luen. The police investigation of the activities of the defendants started about December 1993. Chief Inspector Chung was unable to tell when the police first had contact with the Lais and Mou. Today the jury will hear admitted facts of the case This will mark the conclusion of the prosecution's case. On trial with the three defendants are former manager at Tomson Pacific David Tong Cun-lin and former movie actress Jade Hsu Jye. All deny conspiring to defraud the Securities and Futures Commission and the takeovers committee in 1990 and 1991. Arthur Lai also denies accepting advantages of HK$26.4 million and A$2 million. Raymond Lai and Mou deny assisting him to receive the money, and Tong denies offering the $26.4 million. ULTRASONIC INDUSTRIAL COMPANY LIMITED: Winding-up petition ---------------------------------------------------------- A petition for the winding up of Ultrasonic Industrial Company Limited was presented to the High Court on Sept 4 by Lau Fong of Room 2212, Ping Wong House, Ping Tin Estate, Kwun Tong, Kowloon, and the said petition is directed to be heard before the court at 9:30 am on Oct 14, 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 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. ================= I N D O N E S I A ================= SEMEN GRESIK: Fresh bid for cement stake ---------------------------------------- According to the Hong Kong Standard, Indonesian authorities will call a second tender for the sale of a stake in state- owned Semen Gresik at the end of this month. The bidders will include not only Mexico's Cedmex but also others but no details were given on this. State Enterprises Minister Tanri Abeng said yesterday the government's minimum price for the second tender would be Semen Gresik's initial public offering price of 7,000 rupiah per share. He said that the current price is almost the same as the IPO price and the government was hoping to jack up the price by at least 200 percent above the current market price. ========= J A P A N ========= FUJI BANK: To release self-assessment of loan portfolio ------------------------------------------------------- Nikkei reports Fuji Bank decided Thursday to disclose as soon as this month an assessment of the recoverability of its loans and other assets, bank sources said. Fuji Bank's category 2 loans, or those on which recovery is questionable, are estimated at about 2.4 trillion yen. Combined with loans that offer slim or no recovery prospects, the total comes to about 2.6 trillion yen, or about 6% of the bank's outstanding loans - lower than the average of about 11% among all city banks. The Financial Supervisory Agency, which scrutinized Fuji Bank's internal review as part of its ongoing inspection of the bank, has apparently determined that the assessment conducted at the end of March gives a fairly accurate picture of the bank's condition. Fuji Bank's move will likely have an impact on other banks, which have been reluctant to announce the results of their internal assessments, analysts said. At the same time, Fuji Bank is planning a drastic restructuring, including cutting several thousand staffers, the sources said. FUJITSU LIMITED: Projects 35% decline in midterm net profit ----------------------------------------------------------- Nikkei reports Fujitsu Ltd. is likely to post a 35% year- on-year drop in consolidated net profit to about 10 billion yen for the half year ending Sept. 30 on sluggish sales of communications equipment and semiconductors, company sources said Thursday. Sales are forecast to rise 6% to 2.4 trillion yen, thanks to a strong performance by the data processing division. But sales at the communications division will likely fall 20%, partly due to reduced investment by Nippon Telegraph and Telephone Corp. (9432). Sales of electronic devices will also fall slightly due to lower chip prices. Group operating profit is projected to plunge 75% to 25 billion yen. Fujitsu will record 35 billion yen in extraordinary profit, generated from selling shares in three listed subsidiaries. Extraordinary loss will likely stand at 20 billion yen, stemming from liquidation of its U.S. chip development unit, and appraisal losses on securities holdings will reach 10 billion yen. For the full year through March, group sales are seen increasing 8% to 5.4 trillion yen, though operating profit is forecast to fall 10% to 170 billion yen. Net profit is projected at around 40 billion yen, up from 5.6 billion yen the previous year. LONG TERM CREDIT: S&P lowers LTCB's long-term debt -------------------------------------------------- According to the Hong Kong Standard, Standard and Poor's yesterday slashed its credit ratings for LTCB to junk bond status. The agency said the bank could be facing losses worth more than the 750 billion yen it had admitted and warned its planned rescue merger with another bank could hit problems. The downgrade came just a day after the Bank of Japan decided to guide the overnight call rate down to 0.25 from just under 0.5 per cent to help banks, the first time it has eased credit policy over the past three years. Bank of Japan governor made it clear the decision was directly linked to saving LTCB. MARUBENI CORPORATION: Moody's downgrades long-term rating --------------------------------------------------------- Moody's Investors Sevice Inc said it has downgraded its long-term debt rating for Marubeni Corp to Baa2 from single-A-3. The prime-2 short-term debt rating of the company wasn't affected. Moody's said the rating outlook is negative given the company's larger concentration to emerging markets in relation to its economic capital. The rating agency said it is concerned about increasing pressure on Marubeni's financial fundamentals. NISSHO IWAI CORP: Moody's downgrades Nissho Iwai ------------------------------------------------ The Asian Wall Street Journal reported that Moody's Investor Services Inc. has downgraded the long-term credit rating of Nissho Iwai Corporation and its subsidiaries from Baa2 to B1. The article also stated that the rating outlook is negative due to the company's large exposure to emerging markets. Nissho Iwai has reportedly made efforts to diversify from trade intermediation into business- investment management. ========= K O R E A ========= CHEIL PRECISION: Starts liquidation procedure --------------------------------------------- According to the Korea language Maeil Kyungje's Business Brief section, the Changwon District Court has approved the liquidation plan of the Cheil Precision Company. HYUNDAE MACHINERY: Hyundae Machinery Co. liquidates --------------------------------------------------- Hyundae Machinery Company advertised in the Korean language Maeil Kyungje that it has decided to liquidate based on its creditors decision made on July 31, 1998. The company's address is 360-33 Upsung-dog, Chanan-shi, Chungchungnam-do, and the president if Mr. Han Ki-hwan. This company is not affiliated with the Hyundai Group, Korea's largest conglomerate. KIA MOTORS: Kia write-offs sweeten pot for suitor quartet --------------------------------------------------------- According to the SCMP, creditors of Kia Motors and Asia Motors are willing to write off 2.9 trillion won of their debts. The offer to scrub 30 percent of debt and slash interest payment sweetens the second round of auction. Interest payments will be cut by 2.8 trillion won through debt rescheduling and exempting another 2.2 trillion won of payment guarantees for the 2 car-makers' affiliates. As such, debt write-offs, payment guarantee exemption and interest payment cuts for the second round came to 7.9 trillion won, compared with 6.5 trillion won for the first round when no debt write-offs were offered. The two firms' combined debts are 11.9 trillion won, including 2.4 trillion won of payment guarantees. Ford and three South Korean car-makers - Samsung, Hyundai and Daewoo - again submitted letters of intent to make offers before bidding closes on Sept. 21. The auction winner will be named on Sept 29. Analysts believe Samsung is most likely to win the auction, given its aggressive bidding in the first round when it offered 1.28 trillion won, followed by Daewoo's 1.11 trillion won. Samsung also asked for the lowest debt write- offs of 2.4 trillion won, while Ford demanded write-offs of nearly nine trillion won. Daewoo and Hyundai did not specify the value of write-offs. With a struggling new vehicle business, Samsung is eager to buy Kia. Samsung's annual passenger-car output is targeted to grow to 300,000 by 2000 from 80,000 this year but Kia and Asia Motors can already make up to a million cars a year. Although Asia Motors is offered with Kia, their buyer is likely to sell off Asia Motors to a third party, possibly to Scania of Sweden, which has shown interest. Ford, which holds a 17 percent stake in Kia with its subsidiary Mazda Motors, is bidding for Kia in a move to expand its presence in Asia. LG GROUP: Wants say in semicon deal with Hyundai ------------------------------------------------ Asia Pulse reports LG Group Thursday declared its intention of holding managerial rights in the new semiconductor company to be set up through a merger between LG Semicon Co. and Hyundai Electronics Industry under the business restructuring plan involving Korea's top five business groups. Lee Mun-ho, LG's top official responsible for restructuring efforts, told reporters that "our group's policy is to lead the restructuring by holding the managerial rights to the projected merged company." Lee's remark is apparently in reaction to Hyundai's move to take over the entire operation. KOOKMIN BANK: To merge with Korea Long Term Credit -------------------------------------------------- According to the SCMP, Kookmin Bank and Korea Long Term Credit Bank (KLTCB) will merge to create South Korea's largest commercial bank in the latest deal to reform the country's troubled banking sector. The bank will have assets of about 100.6 trillion won (about HK$573 billion) and 47 trillion won of loans, including trust accounts. Financial terms of the merger are still under discussion. Kookmin Bank president Song Dal-ho and KLTCB president Oh Se-jong yesterday agreed on the merger in principle. A formal announcement will come later this week along with detailed terms of the merger. KOREA LONG TERM CREDIT: To merge with Kookmin Bank -------------------------------------------------- According to the SCMP, Kookmin Bank and Korea Long Term Credit Bank (KLTCB) will merge to create South Korea's largest commercial bank in the latest deal to reform the country's troubled banking sector. The bank will have assets of about 100.6 trillion won (about HK$573 billion) and 47 trillion won of loans, including trust accounts. Financial terms of the merger are still under discussion. Kookmin Bank president Song Dal-ho and KLTCB president Oh Se-jong yesterday agreed on the merger in principle. A formal announcement will come later this week along with detailed terms of the merger. SAMSUNG ELECTRONICS: To issue bonds worth US$751 million -------------------------------------------------------- Futures World reports Samsung Electronics Co. will float three-year bonds totaling 1 trillion won (US$751 million) on Sept. 22, financial market sources said. The amount of the corporate bonds is the largest ever floated on a single day by a private company in the country, and it is expected to push up market interest rates. Samsung plans to use the proceeds from the bond issuance for corporate restructuring and reimbursement of short-term foreign loans, company officials said. Investment trust companies have already agreed to underwrite 800 billion won worth of the bonds, with 200 billion won worth now remaining uncommitted. The bonds will bear a coupon rate of 0.3 percentage point plus the rate on the company's debt to be posted on Sept. 21, the sources said. TAEHAN TOURISM DEVELOPMENT: Taehan Tourism liquidates ----------------------------------------------------- Taehan Touism Development Company advertised in the Korean language Maeil Kyungje that it has decided to liquidate based on its creditors decision made on August 31, 1998. The company's address is 1305-2 Seocho-dong, Seocho-gu, Seoul, and the president if Mr. Yi Yong-kyu. =============== M A L A Y S I A =============== AYAM MANJUNG PROCESSING SDN BHD: Winding-up petition ---------------------------------------------------- D.B.E. Marketing Sdn Bhd on 19/8/98 petitioned for the winding-up of Ayam Manjung Processing Sdn Bhd. The petition is directed to be heard on 22/12/98. CHESTERTON INTERNATIONAL: Winding-up petition --------------------------------------------- Chesterton International Property Consultants Pte Ltd on 28/7/98 petitioned for the winding-up of Chesterton International (Malaysia) Sdn Bhd. The petition is directed to be heard on 27/11/98. DISPOPAK PACKAGING SDN BHD: Winding-up petition ----------------------------------------------- Polarcup (Malaysia) Sdn Bhd on 25/8/98 petitioned for the winding-up of Dispopak Packaging Sdn Bhd. LIEN HOE CORP: Seeks extension on loan stock -------------------------------------------- Business Times reports Lien Hoe Corp Bhd is seeking approval from its shareholders for an extension of the tenure of its 6 per cent redeemable secured loan stocks 1993/1998 to August 17 2000. In the event the proposed extension is approved and implemented, Lien Hoe said 35 per cent of the RM82.79 million nominal amount of the loan stocks currently outstanding will be paid on a date to be determined (falling five market days from the date of receipt of the last necessary approvals for the proposed extension). The remaining 65 per cent outstanding, amounting to RM53.82 million nominal amount of loan stocks, will be extended to August 17 2000. In its circular to shareholders, Lien Hoe said that if the loans stocks are redeemed in full, its financial position may be adversely affected because it may have to dispose of some of its property assets at forced sale prices to raise funds to redeem the loan stocks. Lien Hoe is thus seeking approval from Bank Negara Malaysia, Securities Commission, Registrar of Companies, Kuala Lumpur Stock Exchange and its shareholders for the proposed extension. However, if the proposal is not approved by its shareholders and the relevant authorities, trustee for the loan stocks Universal Trustee (Malaysia) Bhd, under the terms of the Trust Deed, is empowered to declare that an event of default has occurred if Lien Hoe fails in its obligations under the trust deed. The loan stocks, which will mature on August 17 this year, were issued by Lien Hoe on August 18 1993 with the issue comprising RM85.74 million nominal amount of the loan stocks with 85.74 million detachable transferable subscription rights (TSRs). MENTARI COMMUNICATIONS SDN BHD: Winding-up petition --------------------------------------------------- Lembaga Getah Malaysia on 24/7/98 petitioned for the winding-up of Mentari Communications Sdn Bhd. The petition is directed to be heard on 30/10/98. NILAI ELIT (M) SDN BHD: Voluntary liquidation --------------------------------------------- The members of Nilai Elit (M) Sdn Bhd on 7/9/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 12/10/98. PURNAMA EDARAN KUANTAN SDN BHD: Winding-up petition --------------------------------------------------- Barkath Stores (Kuala Lumpur) Sdn Bhd on 24/4/98 petitioned for the winding-up of Purnama Edaran Kuantan Sdn Bhd. The petition is directed to be heard on 22/9/98. TETKIM HOLDINGS SDN BHD: Voluntary winding up --------------------------------------------- The members of Tetkim Holdings Sdn Bhd on 7/9/98 petitioned for the voluntary winding-up of the company. Creditors of the company are requested to submit their claims before 10/10/98. TIME TELEKOM: TRI in talks to aquire Time Telekom ------------------------------------------------- Business Times reports Technology Resources Industries Bhd (TRI) chairman and chief executive Tan Sri Tajudin Ramli said the group is holding discussions to acquire Time Engineering Bhd's subsidiary, Time Telecommunications Sdn Bhd (Time Telekom). However, he declined to disclose any details as Time Engineering and nine of its subsidiaries, including Time Telekom, are currently undergoing a debt and capital restructuring exercise. The company and its subsidiaries have also obtained legal protection from its creditors under Section 176 of the Companies Act 1976. "We cannot pre-empt it (the legal process) ... we have to wait," he said. According to Tajudin, TRI would like to be one of the three remaining telecommunications companies after the expected rationalisation in the industry. The other two are expected to be Telekom Malaysia Bhd and Binariang Bhd. Time Engineering's telecommunications business has a net book value of RM3.3 billion, with Time Telekom fixed-line operations alone accounting for some RM2 billion. As at end-1997, the group's total debts stood at some RM2.5 billion, the bulk of which is owed by Time Telekom. TONGKAH HOLDINGS: Restructuring includes Asia Connect sale ---------------------------------------------------------- Business Times reports Tongkah Holdings Bhd is in the midst of restructuring its business in its move to reduce its debt burden of about RM200 million, said Tongkah executive chairman Mokhzani Mahathir. The restructuring will involve disposing of its 70 per cent-owned Asia Connect Sdn Bhd and merging another subsidiary with two foreign parties, subsequently listing the new company on an overseas bourse. Mokhzani said Asia Connect, an IT services provider, has been working on several projects with the Starwood Group of Hotels in the US and with ITT Sheraton. He declined to say how much Tongkah will generate if Asia Connect is disposed of. Mokhzani also said plans are under way to merge its 51 per cent-owned subsidiary, Tongkah Electronics Sdn Bhd, with a China-Singapore joint venture company. "The merged company will then be listed on New York's Nasdaq, hopefully by the first quarter of next year," he said. "We will, however, maintain Tongkah as the holding company concentrating on three core businesses - healthcare, manufacturing and financing." ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: Segregation of PAL debts suggested ------------------------------------------------------- The Asian Wall Street Journal reported that the committee overseeing the rehabilitation of Philippine Airlines (PAL) wants secured claims of the airline's creditors segregated from unsecured claims in order to insure fair treatment of both overseas and Philippines based claimants. This proposal needs the approval of all of the claimants and the Philippine Securities Exchange Commission (SEC). PRATRIUM HOLDINGS: SEC extends debt reprieve of firm ---------------------------------------------------- According to BusinessWorld, the Securities and Exchange Commission (SEC) has extended the debt reprieve of real- estate developer Pratrium Holdings, Inc. for another 30 days. All claims against the firm are thus suspended until September 30. This is the second time the commission has extended a 30- day reprieve to the firm. Pratrium filed its debt relief petition with the SEC last July due to tight liquidity problem. In fact, it has not been able to meet its maturing obligations to Equitable Banking Corp. (EBC), its biggest creditor. As of May, the firm said it owes the bank 70 million Philippine pesos (PhP). In its petition, Pratrium said its problems can be traced to the currency crisis and the downturn of the real estate sector. Because of this, the firm said it was forced to defer its projects. VICTORIAS MILLING: Investors show interest in Victorias ------------------------------------------------------- BusinessWorld says investors are said to be showing interest in investing in cash-strapped Victorias Milling Corp. (VMC). PCIBank executive vice-president Isidro Alcantara said in an interview two foreign investors have expressed "serious" interest in the firm. He also chairs the management committee created by the Securities and Exchange Commission (SEC) to oversee the rehabilitation of the cash-strapped sugar miller. He wouldn't identify the interested buyers, but only said the foreign investors have shown "positive" interest on acquiring interest in the sugar-milling firm. A number of local companies have also made inquiries on Victorias, he said. Mr. Alcantara said prospective buyers are now paying closer attention to the firm now that there are signs that VMC's operations can be efficient and high-yielding. Like SEC officials, Mr. Alcantara is optimistic the firm's creditors are nearing a settlement on the proposed rehabilitation plan for the firm. =============== T H A I L A N D =============== BANK OF AYUDHYA: To issue debentures when time is right ------------------------------------------------------- The Bangkok Post reports the Bank of Ayudhya plans to issue debentures worth eight billion baht or the equivalent in foreign currencies. The issue date and interest rate would depend on the state of the market and the bank's needs, the bank said in a statement yesterday. Bank of Thailand governor M.R. Chatumongol Sonakul said the debenture issue, and those by any other bank, would not be guaranteed by the government. The government's guarantee applied only to debt outstanding when the promise was made last year, he said. But the central bank was ready to subscribe to the debentures if the issuing bank could not sell them all. That would compel the bank to apply for participation in the assistance programme announced by the government last month. PHATRA THANAKIT PCL: TFB reports on securities purchase ------------------------------------------------------- As Thai Farmers Bank Public Company Limited ("TFB") has made a Tender Offer to purchase the securities of Phatra Thanakit PCL covering the period from July 31, 1998 to September 4, 1998, TFB would like to report the result of buying the securities of PHATRA as the following details: Number Percentage of of shares total issued shares Common shares held before the Tender Offer 252,826,500 49.61 Common shares offered to be purchased 256,810,813 50.39 Common shares tendered 228,411,152 44.82 Common shares purchased 228,411,152 44.82 Common shares held after the Tender Offer 481,237,652 94.43 SLC LEASING: Loses legal round to US insurer -------------------------------------------- The Bangkok Post reports SLC Leasing Co has suffered a legal setback in its battle for the right to continue collecting payments from former hire-purchase customers of the defunct Sitca Investment and Securities. The Civil Court has ordered SLC to credit all installment payments and interest collected from vehicle hire-purchase customers to MBIA Insurance Corp of the United States. MBIA insured the securitisation last year of a package of Sitca hire-purchase loans. A Sitca subsidiary registered in the Cayman Islands then issued $83 million in notes backed by the hire-purchase receivables. The notes were rated 'AAA' by Standard & Poor's, largely on the strength of MBIA's involvement. SLC Leasing, known as Sitca Leasing until it was sold last year to a group of foreign investors, was responsible for collecting Sitca's hire-purchase loans. Sitca was among the 56 finance companies closed last December. Four of its executives were banned recently from leaving the country while authorities investigated alleged misappropriation of funds. Officials have identified more than 400 million baht in suspicious transfers from Sitca to dummy companies. They said the funds were used for other investments, including purchases of Sitca shares. SAMART TELCOMS: Confident it can repay B2.4bn loan -------------------------------------------------- Samart Telcoms Plc (Samtel) hopes to settle an agreement by the end of this year to borrow 2.4 billion baht from four creditors to pay its equipment suppliers. The creditors are Bangkok Bank, Thai Farmers Bank, the Industrial Finance Corporation of Thailand (IFCT), and an unnamed financial institution in the United States. Col Ruangsub Kovindha, the company president, said he was confident that Samtel could repay the loan, based on an expectation of healthy profits this year. Its subsidiary, Samart Communication Services Co, has also been profitable. Samart Communication operates the satellite-based rural public telephone project for the Telephone Organisation of Thailand. The TOT has agreed to rent the network for 4.2 billion baht over 10 years, starting this year. Samtel reported first-half net profit of 77 million baht, an increase of 59% on the same period last year. Revenue rose by 95% to 594 million baht. THAI TANK TERMINAL: NPC directors grant loan to TTT --------------------------------------------------- National Petrochemical Public Company Limited (NPC)'s Board of Directors approved a proposal to grant a 3-month subordinated loan to Thai Tank Terminal Limited (TTT), a subsidiary which NPC holds 51% of its paid-up capital. This is in order to relieve TTT's financial unliquidity during the time that loan restructuring with its lenders, which is scheduled to be concluded by November 1998, is incomplete. The loan principal amount is 127.50 million baht, an equivalent to NPC's shareholding percentage in TTT of 51%. The value of this transaction is between 0.03% to 3% of NPC's net asset value as of June 30, 1998. on September 8 NPC signed the loan agreement for the first installment of 17.85 million baht. During the time that loan restructuring with TTT's lenders is incomplete, the rest will be drawn down when required necessary by TTT. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Princeton, NJ USA, and Beard Group, Inc., Washington, DC USA. Debra Brennan and Lexy Mueller, Editors. Copyright 1998. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $875 per month delivered via e-mail. 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