/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/980916.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 Wednesday, September 16, 1998, Vol. 1, No. 144 Headlines * C H I N A & H O N G K O N G * BLANDOR INTERNATIONAL: Notice of meeting of creditors CANASAL LIMITED: Notice of first meetings CHUN MOU ESTATE: Notice of meetings of members FARBELL ELECTRONICS LIMITED: Winding-up petition FULL CHOICE LAND LIMITED: Winding-up order GOLDENBOSS INVESTMENT LIMITED: Notice of first meetings GOOD HAUL COMPANY LIMITED: Winding-up petition HONG KONG TOY CENTER: Posts losses; signals trouble for UPI IMAHAKA (HK) LIMITED: Notice of meeting of members IN-ART INTERIORS LIMITED: Winding-up petition KWAI FAT CONTAINER: Winding-up order LUCKY ORIENT LIMITED: Winding-up order OKURA & COMPANY: Notice of meeting of creditors PERFECT WAY MANAGEMENT LIMITED: Winding-up order RHINE HOLDINGS: Winding-up order RHINE JEWELLERY LIMITED: Winding-up order SARI LIMITED: In members' voluntary liquidation SIU FUNG CERAMICS HOLDINGS: Kumagai quits Siu-Fung rescue SSTAR ENGINEERING LIMITED: Winding-up order TAI HING ENTERTAINMENT: Winding-up order * I N D O N E S I A * KARABHA DIGDAYA: Bankruptcy court swings into action OMETRACO GROUP: Creditors target Ometraco in filing * J A P A N * ASAHI CHEMICAL: Expects 35% fall in FY98 pretax profit KANKAKU SECURITIES: JRII lowers rating LONG TERM CREDIT: Politicians to decide fate of LTCB NEW JAPAN SECURITIES: JRII lowers rating NISSAN MOTOR: May stop making 200SX in Tennessee SEKISUI HOUSE: Moody's may cut debt rating YAMATANE SECURITIES: JRII lowers rating * K O R E A * CHUHWA CO.: Starts Liquidation procedure DONGSUNG CO.: Dongsung Starts Creditor Reconciliation EASY TECHNOLOGY CO.: Starts Creditor Reconciliation TAEDO PHARMACEUTICAL CO.: Decides To Liquidate TONGKOOK GENERAL ELEC: Defaults on loans; goes bankrupt * M A L A Y S I A * ARENSI HOLDINGS (M) BHD: Results announcement BANK BUMIPUTRA: Moody's lowers deposit ratings to junk ETS AGENCY SDN BHD: Winding-up petition HICOM HOLDINGS: Bondholders have right to redemption ISLAND RESOURCES SDN BHD: Winding-up petition MAJU KERTAS PRODUCTS SDN BHD: Winding-up petition MALAYAN BANKING: Moody's lowers deposit ratings to junk PASARAYA LOOWIN SDN BHD: Winding-up petition PENGKALEN HOLDINGS: Obtains court protection under Sec. 176 PUBLIC BANK: Moody's lowers deposit ratings to junk SENI BERKEMBAR SDN BHD: Voluntary Winding-up * P H I L I P P I N E S * METRO PACIFIC: Fort Bonifacio faces mounting arrears PHILIPPINE REALTY: Fort Bonifacio faces mounting arrears PHILIPPINE TELEGRAPH: Losses may worsen on labor dispute PRIMETOWN: Fort Bonifacio faces mounting arrears * S I N G A P O R E * HOTEL ROYAL: Reports 77% drop in net KAY HIAN HOLDINGS: Net earnings down almost 45% * T H A I L A N D * TPI POLENE PCL: JP Morgan resigns as financial advisor THAI FARMERS BANK: Debt downgraded by Tris ================================= C H I N A & H O N G K O N G ================================= BLANDOR INTERNATIONAL: Notice of meeting of creditors ----------------------------------------------------- A meeting of members of Blandor International Limited will be held at 28th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong on September 22 at 4:00 pm. CANASAL LIMITED: Notice of first meetings ----------------------------------------- In the High Court of Hong Kong Special Administration Region Court of First Instance, companies winding-up proceeding (No.280 of 1996), a notice of first meetings is hereby given that creditors and contributors of Canasal Limited will meet on September 25, 1998 at the Official Receiver's Office at 10/F, Queensway Government Offices,66 Queensway, Hong Kong. CHUN MOU ESTATE: Notice of meetings of members ---------------------------------------------- A meeting of members of Chun Mou Estate Agency Limited will be held at 28th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong on September 23 at 4:00 pm to be followed at 4:30 pm. Proxies must be lodged at 12/F., Bel Trade Commercial Building, 1-3 Burrows Street, Wanchai, Hong Kong notg later than 4:00 pm on the day before the meeting or adjourned meeting at which they are to be used. FARBELL ELECTRONICS LIMITED: Winding-up petition ------------------------------------------------ Notice is hereby given that a petition for the winding-up of Farbell Electronics Limited by the High Court of Hong Kong was, on the 25th day of August, 1998, presented to the said Court by Lee Mon 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. FULL CHOICE LAND LIMITED: Winding-up order ------------------------------------------ A winding-up order notice is hereby given that Full Choice Land Limited is undergoing a companies winding-up proceedings (No. 413 of 1988) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 2, 1998. The date of presentation of petition was June 16, 1998. GOLDENBOSS INVESTMENT LIMITED: Notice of first meetings ------------------------------------------------------- In the High Court of Hong Kong Special Administration Region Court of First Instance, companies winding-up proceeding (No.411 of 1996), a notice of first meetings is hereby given that creditors and contributors of Goldenboss Investment Limited will meet on September 22, 1998 at the Official Receiver's Office at 10/F, Queensway Government Offices,66 Queensway, Hong Kong. GOOD HAUL COMPANY LIMITED: Winding-up petition ---------------------------------------------- Notice is hereby given that a petition for the winding-up of Good Haul Company Limited T/A Cosmo Dragon Company by the High Court of Hong Kong was, on the 26th day of August, 1998, presented to the said Court by Mason Manda Advertising Limited 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. HONG KONG TOY CENTER: Posts losses; signals trouble for UPI ----------------------------------------------------------- Investment holding company United Pacific Industries (UPI) has been dealt another setback after recently acquired toy- making subsidiary Hong Kong Toy Center International lost $39.37 million in the first half of this year. Hong Kong Toy's poor performance followed a set of disastrous results at another of UPI's acquisitions -- stationery maker Climax International -- which reported debts of $600 million earlier this year. It also said there were some "irregularities" in its previous accounts, such as exaggerated account receivables. UPI bought the two manufacturing companies separately last year and now holds 72.7 % of Hong Kong Toy and 29.3 % of Climax. The group's managing director, Simon Hsu admitted investment in Climax had proven to be a setback, but strongly defended the Hong Kong Toy purchase. He said Hong Kong Toy has strong cash flow even though the P&L doesn't look fantastic. He added that Hong Kong Toy will be profitable from April to October during which the peak season starts. IMAHAKA (HK) LIMITED: Notice of meeting of members -------------------------------------------------- A meeting of members of Imanaka (H.K.) Limited will be held at Rooms 1304-5, 13/F., Unicorn Trade Centre, 127-131 Des Voeux Road Central, Hong Kong on Oct 12 at 10:30 am to receive and consider a statement of affairs of the company and to approve the appointment of Mr Takeshi Nagai as the Liquidator for the purposes of the winding up of the company. IN-ART INTERIORS LIMITED: Winding-up petition --------------------------------------------- Notice is hereby given that a petition for the winding-up of In-Art Interiors Limited by the High Court of Hong Kong was, on the 21th day of August, 1998, presented to the said Court by ATAL Engineering Limited 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. KWAI FAT CONTAINER: Winding-up order ------------------------------------ A winding-up order notice is hereby given that Kwai Fat Container Services Limited is undergoing a companies winding-up proceedings (No. 523 of 1988) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 2, 1998. The date of presentation of petition was July 31,1998. LUCKY ORIENT LIMITED: Winding-up order -------------------------------------- A notice for a winding-up order for Lucky Orient Limited was given on September 2, 1998. The date of presentation of the petition was July 29, 1998 and the official receiver & provisional liquidator is A.R. Hearder. OKURA & COMPANY: Notice of meeting of creditors ----------------------------------------------- A meeting of members of Okura & Co., (Hong Kong) Limited will be held at Room 406, Level 4, Hong Kong Convention and Exhibition Centre, 1 Harbour Road, Wanchai, Hong Kong on Sept 18 at 10:30 am. PERFECT WAY MANAGEMENT LIMITED: Winding-up order ------------------------------------------------ A winding-up order notice is hereby given that Perfect Way Management Limited is undergoing a companies winding-up proceedings (No. 525 of 1988) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 2, 1998. The date of presentation of petition was August 3, 1998. RHINE HOLDINGS: Winding-up order -------------------------------- A winding-up order notice is hereby given that Rhine Holdings Limited is undergoing a companies winding-up proceedings (No 510 of 1988) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 2, 1998. The date of presentation of petition was July 28,1998. RHINE JEWELLERY LIMITED: Winding-up order ----------------------------------------- A winding-up order notice is hereby given that Rhine Jewellery Limited is undergoing a companies winding-up proceedings (No. 511 of 1988) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 2, 1998. The date of presentation of petition was July 28, 1998. SARI LIMITED: In members' voluntary liquidation ----------------------------------------------- The creditors of Sari Limited, which is being voluntarily wound up, are required on or before Oct 12 to send in their names, addresses and particulars of their debts or claims to the Liquidators of the said companies, 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 deemed to waive all of such debts or claims and the liquidators will be entitled seven days after the above date, to distribute the funds available or any part thereof to the Members. Joint Liquidators: Allan Hon Wing Yu, Pollyanna Shui Kin Chan at 23rd Floor, Chekiang First Bank Building, 58-63 Glooucester Road, Wanchai, Hong Kong. SIU FUNG CERAMICS HOLDINGS: Kumagai quits Siu-Fung rescue --------------------------------------------------------- According to the scmp, construction firm Kumagai Gumi (Hong Kong) has decided against proceeding with its part in the $800 million bailout of troubled Siu-Fung Ceramics Holdings and its controlling shareholder Siegfried Lee Siu-fung, because of Siu-Fung's failure to execute a debt restructuring agreement with its creditors before Sept 1. Kumaigai said it was asked to relax this requirement in the interests of achieving a successful completion to the deal. However, Kumagai had become aware of unforeseen circumstances which could adversely affect the financial condition of the Siu-Fung group and make the subscription less attractive. Kumagai had paid no consideration in connection with the agreement. China Everbright International associate Kumagai was to have paid $470 million for 2.35 billion shares in Siu-Fung at 20 cents per share. It was not known whether the other parties in the bailout group - China State Bureau of Light Industry and Beijing First Light Industry Group - would also pull out of the deal. SSTAR ENGINEERING LIMITED: Winding-up order ------------------------------------------- A winding-up order notice is hereby given that SStar Engineering Limited is undergoing a companies winding-up proceedings (No. 526 of 1988) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 2, 1998. The date of presentation of petition was August 4, 1998. TAI HING ENTERTAINMENT: Winding-up order ---------------------------------------- A winding-up order notice is hereby given that Tai Hing Entertainment and Restaurant Group Limited is undergoing a companies winding-up proceedings (No. 522 of 1988) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 2, 1998. The date of presentation of petition was July 31, 1998. ================= I N D O N E S I A ================= KARABHA DIGDAYA: Bankruptcy court swings into action ---------------------------------------------------- According to the SCMP, a three-judge panel at Jakarta's commercial court, which was set up on August 20, yesterday heard its first case of bankruptcy, filed on Sept 1, against golf-course developer Karabha Digdays, which is controlled by Judith Suryajaya, daughter of a founder of car-maker Astra International William Suryajaya. The charges, made by a Japanese-controlled company, Jaya Obayashi, and a local firm, Nusaraya Cipta, said that Karabha owed 15.3 billion rupiah comprised of unpaid fees and interest in the construction of the Emerald One Golf and Real Estate in nearby Cimanggis between 1993 and 1996. The case demands that the court declare Karabha bankrupt and sell its assets, including the golf course and real estate, to pay creditors back. Yan Apul, for the defence, admitted Karabha owed money to the plaintiff, but said that the sum only involved an estimated 11 billion rupiah and the plaintiffs are only two of the 40 creditors to which Karabha owes money, adding that the delay in payment was wholly due to the country's current monetary crisis. The commercial court will settle bankruptcy cases under the new law which allows 30 days for settlement and 30 days for appeal. Indonesia revised the law and set up the court as part of a commitment to the IMF reform package tied in with a US$50 billion rescue package for its economic recovery. OMETRACO GROUP: Creditors target Ometraco in filing --------------------------------------------------- A group of 13 Indonesian and foreign banks have joined petitions filed at Indonesia's new bankruptcy court against the listed holding company of Ometraco Group and a financial subsidiary. The petitioning creditors are: America Express Co 's American Express Bank Ltd., Oversea-Chinese Banking Corp, Royal Bank of Canada, PT Bank Ekspor-Impor Indonesia, Union de Banques Arabes & Francaises, PT Bank Internasional Indonesia, PT Fuji bank International, PT Bank Negara Indonesia, PT Bank BII Commonwealth, PT Bank Pembangunan Indonesia, Bumi Daya Finance International Ltd., Commercial Bank of Korea Ltd. and Industrial & Commercial Bank Ltd. The two petitions, one against PT Ometraco Corp and one against PT Ometraco MultiArtha, were filed last week. The group claims they are owed a total of more than $100 million. Earlier this year, a group of creditors of Ometraco and the holding company attempted to negotiate a debt restructuring. But after the effort didn't succeed, the 13 banks agreed to file petitions with the bankruptcy court Indonesia opened in August after passing a new bankruptcy law to replace a 1904, little-used Dutch colonial-era law. The petitions, which haven't been released publicly, have been seen by The Asian Wall Street Journal. Two of the petitioners that are listed on the Jakarta Stock Exchange -- Bank Internasional Indonesia, and the Bank Negara Indonesia -- reported to the exchange last week that they had joined other creditors in petitions seeking to have PT Ometraco Co. declared bankrupt. ========= J A P A N ========= ASAHI CHEMICAL: Expects 35% fall in FY98 pretax profit ------------------------------------------------------ Nikkei reports Asahi Chemical Industry Co. is likely to see its pretax profit for the year ending March plunge to 28 billion yen, down 35% and 4 billion yen short of earlier projections, company sources said Monday. The lower-than- expected profit is attributed to a fall in its mainstay housing sales as well as lower prices for chemical products, resins and synthetic fibers. The company expects operating profit to slip 11% to 31 billion yen. It plans to offset the decline in its mainline business profit with 3 billion yen in profit from partial liquidation of its stock and real estate holdings. KANKAKU SECURITIES: JRII lowers rating -------------------------------------- The Asian Wall Street Journal reported that Japan Rating & Investment Information has lowered its ratings on three medium-sized securities companies. The companies and the ratings involved are: Kankaku Securities Company's long-term debt ratings from BB- to B+, New Japan Securities Company's commercial paper rating from A-2 to A-3, Yamatane Securities Company from BB+ to B+. LONG TERM CREDIT: Politicians to decide fate of LTCB ---------------------------------------------------- According to the Hong Kong Standard, after two months of probing the LTCB, suspicion is growing that the Financial Supervisory Agency (FSA) has delayed a conclusion because of political pressure and that a whitewash is in the works. Akira Takai, a senior analyst at Daiwa Institute of Research, said LTCB's future would depend on political decisions. FSA was launched on June 22 and took over the inspection and supervision function of financial institutions from the Ministry of Finance. It began a probe of LTCB on July 13 and eight other big banks on July 24 as part of inspections of the nation's 19 biggest banks. It has already finished inspecting the other eight banks but is still inspecting LTCB. It said that inspection of LTCB might take longer than others because the agency hoped to inspect as much updated data on it as possible. Most analysts believe that ruling Liberal Democratic Party politicians have already decided to inject taxpayers' money into LTCB to help facilitate a planned merger with Sumitomo Trust & Banking. If LTCB is insolvent, current laws would prevent the government from injecting public funds. An analyst said that the government would say that LTCB is not insolvent and inject public money. An analyst said the government will inject 500 to 600 billion yen of public fund into the bank, noting it would not be able to inject more than the bank shareholders' equity of 787 billion yen, because that would show LTCB is insolvent. However, such an amount of public funds would not be enough to fulfil LTCB's bad loan disposals and unrealised stock losses, analysts said. Bank of Japan Governor Masaru Hayami said that if action on LTCB is delayed, credibility for Japan's economy might be affected and it could cause trouble for other nations. NEW JAPAN SECURITIES: JRII lowers rating ---------------------------------------- The Asian Wall Street Journal reported that Japan Rating & Investment Information has lowered its ratings on three medium-sized securities companies. The companies and the ratings involved are: Kankaku Securities Company's long-term debt ratings from BB- to B+, New Japan Securities Company's commercial paper rating from A-2 to A-3, Yamatane Securities Company from BB+ to B+. NISSAN MOTOR: May stop making 200SX in Tennessee ------------------------------------------------ Associated Press reports Nissan Motor Co., Japan's struggling No. 2 automaker, may stop producing and marketing 200SX subcompact coupes at its Tennessee plant in 1999, a company spokeswoman has said. Tokyo-based Nissan is considering the move as part of efforts to restructure its debt-ridden North American operations, said Nissan spokeswoman Ritsuko Harimoto. The two-door cars are the first models affected by Nissan's group-wide restructuring program, announced in May, that calls for a 30 percent reduction in the car maker's 50- model lineup, Harimoto said. SEKISUI HOUSE: Moody's may cut debt rating ------------------------------------------ Bloomberg reports shares of Sekisui House Ltd. fell 20 yen to 994. The real estate developer may have its long-term debt rating of Baa1 cut by Moody's Investors Service due to the prolonged decline in housing starts and home sales in recession-wracked Japan. YAMATANE SECURITIES: JRII lowers rating --------------------------------------- The Asian Wall Street Journal reported that Japan Rating & Investment Information has lowered its ratings on three medium-sized securities companies. The companies and the ratings involved are: Kankaku Securities Company's long-term debt ratings from BB- to B+, New Japan Securities Company's commercial paper rating from A-2 to A-3, Yamatane Securities Company from BB+ to B+. ========= K O R E A ========= CHUHWA CO.: Starts Liquidation procedure ---------------------------------------- The Seoul District Court advertised in the Korean language Maeil Kyungje that the Chuhwa Company has started a liquidation procedure. The creditors have until October 13, 1998 to file their claims with the Seoul District Court, and the president is Mr. Kim Chunghwan. DONGSUNG CO.: Dongsung Starts Creditor Reconciliation ----------------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Dongsung Company has received permission to start its creditor reconciliation procedure by the Seoul District Court. EASY TECHNOLOGY CO.: Starts Creditor Reconciliation --------------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Easy Technology Company has received permission to start its creditor reconciliation procedure by the Suwon District Court. TAEDO PHARMACEUTICAL CO.: Decides To Liquidate ---------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Taedo Pharmaceutical Company has decided to liquidate. TONGKOOK GENERAL ELEC: Defaults on loans; goes bankrupt ------------------------------------------------------- The Asian Wall Street Journal reported that the Tongkook General Electronics Company went bankrupt when it failed to honor maturing loans. Tongkook defaulted on its maturing loan of 5.15 billion won ($3.8 million) at the Korea First Bank. Shares of this electronic equipment and appliance maker were suspended, and trading will resume later this week under the supervision of the stock exchange. =============== M A L A Y S I A =============== ARENSI HOLDINGS (M) BHD: Results announcement --------------------------------------------- Arensi Holdings (M) Bhd (listed on the KLSE) reported a pre-tax loss of RM119.466mil for the year ended 31/3/98 compared to a pre-tax profit of RM7.937mil previously. No reasons were quoted for the losses suffered. The shares were suspended on the KLSE at RM0.41 BANK BUMIPUTRA: Moody's lowers deposit ratings to junk ------------------------------------------------------ The Asian Wall Street Journal reported that Moody's Investors Service Incorporated has downgraded three banks in Malaysia as a result of the increasing risks to creditors of Malaysian entities following the recent economic policy measures taken by the government. The three banks are Bank Bumiputra Malaysia Bhd., Malayan Banking Bhd. (or Maybank), and Public Bank Bhd. These measures have reportedly resulted in the effective closure of Malaysia's capital account, and bringing all ringgit trading onshore and pegging the ringgit at 3.80 to the dollar. Bank Bumiputra Malaysia Bhd. had its long-term deposit ratings lowered from Baa3 to Ba1 and its short-term deposit ratings from Prime-3 to "not prime". The article also stated that Moody's assignment of the Ba1 rating effectively relegates the banks' deposit status to junk. ETS AGENCY SDN BHD: Winding-up petition --------------------------------------- Konsortium Perkapalan Bhd (listed on the KLSE) on 1/9/98 petitioned for the winding-up of ETS Agency Sdn Bhd. HICOM HOLDINGS: Bondholders have right to redemption ---------------------------------------------------- Singapore BusinessTimes cites a Bloomberg report stating Hicom Holdings Bhd, which controls Malaysia's largest carmaker Proton, said the plunge in shares it pledged as security for 915 million Malaysian ringgit (S$417 million) in bonds has given bondholders the right to demand their redemption immediately. The market value of shares in associated companies that Hicom used as security for the bonds has plunged 69 per cent to RM1.57 billion from RM5 billion, according to its latest annual report. The share plunge has breached the terms of the agreement with bondholders and triggers a clause that gives bondholders the option to force the company to redeem the bonds immediately, the report said. The move will likely cause more strain in the company's finances as it struggles with Malaysia's first recession in 13 years. Hicom, which is the 28th largest company on the benchmark Kuala Lumpur Composite Index in terms of market capitalisation, didn't say in the report whether it has set aside money for such an event and executives weren't immediately available for comment. In 1996, Hicom sold RM950 million in bonds that mature in 2001. The company, which has long-term liabilities of RM961 million, has interests in real estate, cement making, heavy vehicle assembly and oil palm plantations. In June, Hicom said fiscal 1998 profit fell 5.3 per cent to RM631.9 million and warned of a gloomy outlook this year. Hicom owns the single biggest stake of about 26 per cent in Malaysia's largest carmaker, Perusahaan Otomobil Nasional Bhd, or Proton. ISLAND RESOURCES SDN BHD: Winding-up petition --------------------------------------------- CCM Chemicals Sdn Bhd on 27/5/98 petitioned for the winding-up of Island Resources Sdn Bhd. The petition is directed to be heard on 25/9/98. MAJU KERTAS PRODUCTS SDN BHD: Winding-up petition ------------------------------------------------- OCBC Finance Bhd on 17/8/98 petitioned for the winding-up of OCBC Finance Bhd. The petition is directed to be heard on 13/11/98. MALAYAN BANKING: Moody's lowers deposit ratings to junk ------------------------------------------------------- The Asian Wall Street Journal reported that Moody's Investors Service Incorporated has downgraded three banks in Malaysia as a result of the increasing risks to creditors of Malaysian entities following the recent economic policy measures taken by the government. The three banks are Bank Bumiputra Malaysia Bhd., Malayan Banking Bhd. (or Maybank), and Public Bank Bhd. These measures have reportedly resulted in the effective closure of Malaysia's capital account, and bringing all ringgit trading onshore and pegging the ringgit at 3.80 to the dollar. Malayan Banking Bhd. (or Maybank) had its senior deposit ratings lowered from Baa3 to Ba1 and its short-term deposit ratings from Prime-3 to "not prime". The article also stated that Moody's assignment of the Ba1 rating effectively relegates the banks' deposit status to junk. PASARAYA LOOWIN SDN BHD: Winding-up petition -------------------------------------------- Ladymade Fashion (M) Sdn Bhd on 24/8/98 petitioned for the winding-up of Pasaraya Loowin Sdn Bhd. The petition is directed to be heard on 10/2/99. PENGKALEN HOLDINGS: Obtains court protection under Sec. 176 ----------------------------------------------------------- According to Singapore BusinessTimes, Pengkalen Holdings Bhd, a unit of prominent businessman Khoo Kay Peng's flagship Malayan United Industries Bhd, has obtained court protection under Section 176 of the Companies Act so as to restructure its operations. Overseas operations will not be affected by the restructuring. In an announcement to the Kuala Lumpur Stock Exchange, Perwira Affin Merchant Bank said Pengkalen would undertake a major corporate restructuring and rationalisation of its entire Malaysian operations. Its exercise will see marginal or not profitable businesses divested or closed down while Pengkalen plans to streamline its other operations so as to result in greater operational efficiency and productivity. The group is highly exposed to the stockbroking industry through its 52.3 per cent listed unit Pengkalen Capital Bhd, which owns two broking firms -- Pengkalen Securities and Kimara Equities. According to Perwira Affin, the court protection secured from the High Court between Sept 10 and Dec 8 this year would cover the holding company and 27 of its subsidiaries including publicly-quoted Pengkalen Capital. Bank borrowings at the group level totalled 1.67 billion Malaysian ringgit (S$761 million) as at Dec 31, 1997. Pengkalen Capital's debt stood at RM1.14 billion. Pengkalen is 80.7 per cent-owned by MUI. The statement said MUI would take up its full entitlement of the proposed Pengkalen rights issue of 595.84 million shares at RM1 apiece, and would make arrangements to repatriate RM500 million cash back to Malaysia from the sale of some of its overseas assets. Pengkalen will also take up its full entitlement of the proposed Pengkalen Capital rights issue of 421.81 million shares, which is aimed at recapitalising its two stockbroking units. PUBLIC BANK: Moody's lowers deposit ratings to junk --------------------------------------------------- The Asian Wall Street Journal reported that Moody's Investors Service Incorporated has downgraded three banks in Malaysia as a result of the increasing risks to creditors of Malaysian entities following the recent economic policy measures taken by the government. The three banks are Bank Bumiputra Malaysia Bhd., Malayan Banking Bhd. (or Maybank), and Public Bank Bhd. These measures have reportedly resulted in the effective closure of Malaysia's capital account, and bringing all ringgit trading onshore and pegging the ringgit at 3.80 to the dollar. Public Bank Bhd. had its deposit ratings lowered from Baa3 to Ba1 and its short-term deposit ratings from Prime-3 to "not prime". The article also stated that Moody's assignment of the Ba1 rating effectively relegates the banks' deposit status to junk. SENI BERKEMBAR SDN BHD: Voluntary Winding-up -------------------------------------------- The members of Seni Berkembar Sdn Bhd on 10/9/98 resolved to wind-up the company voluntarily. Creditors of the company are requested to submit their claims before 1/10/98. ===================== P H I L I P P I N E S ===================== METRO PACIFIC: Fort Bonifacio faces mounting arrears ---------------------------------------------------- According to the SCMP, problems at the ambitious Fort Bonifacio redevelopment project in Manila seem to be intensifying, as some firms which had bought land at the site in 1996 are now in arrears on payments. First Pacific, whose Philippine subsidiary Metro Pacific Corp has a controlling stake in the project, said the project's development budget was being radically redrawn because questions had arisen over cash flow. First Pacific group corporate communications vice-president Robert Sherbin said Fort Bonifacio Development Corp expected to receive less than half the 1.5 billionn pesos owed to it in the second half of this year from 1996 land sales at the Manila project. He said however that approximately one billion pesos had been received in the first half of this year. He said the company was working out a revised schedule of capital expenditures for the development, so in future money spent would equal cash received. Philippine-base investment analysts pointed to two companies, Philippine Realty and Primetown, as the two biggest question marks amongst the developers owing money. A Manila analyst said Primetown is virtually bankrupt while Philippine Realty is in financial distress, and the question is whether this is a short-term phenomenon or whether something will have to be done to cover for these companies' problems for the long term. The analyst estimated net outflow of funds from Fort Bonifacio was to have been 2.8 billion pesos - development costs, taxes and interest costs included - this year and should have been 2.5 billion pesos next year. Analysts said the project's cash flow was crucial as all development expenses were expected to be funded by revenue received from the land sale. Mr Sherbin denied the project's timetable would be affected. He said he did not expect any of the companies to walk away as many have paid 50 percent or more of the purchase price. He also denied rumors that the company planned to sell more land. PHILIPPINE REALTY: Fort Bonifacio faces mounting arrears -------------------------------------------------------- According to the SCMP, problems at the ambitious Fort Bonifacio redevelopment project in Manila seem to be intensifying, as some firms which had bought land at the site in 1996 are now in arrears on payments. Philippine-base investment analysts pointed to two companies, Philippine Realty and Primetown, as the two biggest question marks amongst the developers owing money. A Manila analyst said Primetown is virtually bankrupt while Philippine Realty is in financial distress, and the question is whether this is a short-term phenomenon or whether something will have to be done to cover for these companies' problems for the long term. PHILIPPINE TELEGRAPH: Losses may worsen on labor dispute -------------------------------------------------------- According to BusinessWorld, Philippine Telegraph and Telephone Corp. (PT&T) stands to lose five million Philippine pesos (PhP) per day should its workers decide to go on strike. This was disclosed by PT&T senior vice-president Susan Grace Rivera-Manalo who told BusinessWorld the labor dispute has put the company "at risk" as its finances were already in the red. As it is, Ms. Manalo said the Santiago-owned telecommunications firm has recorded a net loss of about PhP160 million in 1997 alone. In the last two to three years, Ms. Manalo added the company has already racked up a cumulative loss amounting to PhP293.4 million. She explained the company's financial difficulties stemmed from the shrinking demand for their kind of services. PRIMETOWN: Fort Bonifacio faces mounting arrears ------------------------------------------------ According to the SCMP, problems at the ambitious Fort Bonifacio redevelopment project in Manila seem to be intensifying, as some firms which had bought land at the site in 1996 are now in arrears on payments. Philippine-base investment analysts pointed to two companies, Philippine Realty and Primetown, as the two biggest question marks amongst the developers owing money. A Manila analyst said Primetown is virtually bankrupt while Philippine Realty is in financial distress, and the question is whether this is a short-term phenomenon or whether something will have to be done to cover for these companies' problems for the long term. ================= S I N G A P O R E ================= HOTEL ROYAL: Reports 77% drop in net ------------------------------------ Singapore BusinessTimes reports Hotel Royal announced a 77 per cent drop in net earnings to $726,000 on losses from the disposal of investments and hotel operations. Turnover fell 23 per cent to $7.6 million for the six months to June 1998. Earnings per share fell to 1.45 cents from 6.24 cents based on existing share capital, while net tangible assets per share dipped to $2.18 from $2.29. Directors expect a more difficult second half as tourist arrivals are expected to continue declining. No interim dividend was declared. KAY HIAN HOLDINGS: Net earnings down almost 45% ----------------------------------------------- Poor market conditions and higher provisions for doubtful debts by a Malaysian associate saw stockbroker Kay Hian Holdings' interim net earnings slashed by almost 45 per cent to $12.7 million, according to Singapore BusinessTimes. The sharp drop in business in the six months to June 30 is reflected by the 53 per cent drop in turnover to $36.7 million. Profits would have been lower if not for a write-back of doubtful debt provision by the Singapore unit and a $1.2 million foreign exchange gain due to the group's long position in US dollars. The results pulled earnings per share down to 2.9 cents, from 5.3 cents during the comparable period last year. Net tangible asset backing per share stood at 62 cents, up from 61.5 cents. Kay Hian declared a dividend of 7.5 per cent less tax, which is the same as in the previous corresponding period. The dividend will be paid on Oct 9. The company is pessimistic about the outlook for the second half, noting that there had been a substantial drop in business during the last few months. =============== T H A I L A N D =============== TPI POLENE PCL: JP Morgan resigns as financial advisor ------------------------------------------------------ TPI Polene Public Company Limited has informed the SET that JP Morgan Securities Asia Ltd. is no longer the financial advisor to the company effective on 15th September 1998. The company gave no reason for the resignation. THAI FARMERS BANK: Debt downgraded by Tris ------------------------------------------ The Nation reports Thai Rating and Information Services (Tris) announced it has lowered the rating of Thai Farmers Bank from A- to BBB. TFB's Bt7.5 billion subordinated-debts rating was also lowered from BBB+ to BBB-. The rating agency said the ratings of TFB's senior and subordinated debts were removed from Credit Alert where they were placed on June 24 following TFB's announced plan to increase its shareholding in Phatra Thanakit Plc from 49 per cent to 100 per cent. 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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