TCRAP_Public/980914.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      

      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
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