TCRAP_Public/980917.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      

      Thursday, September 17, 1998, Vol. 1, No. 145

                    Headlines


* C H I N A   &   H O N G   K O N G *

CHEMICAL LABORATORIES UNION: Members' voluntary winding up
HONG KONG TELECOM: Union calls for details of layoff plan
HOPEWELL HOLDINGS: Suspends work on Indonesia power plant
IMC HOLDINGS: Results announcement
NEW T&T: Recession forces Wharf unit into 13% cutback

SING TAO HOLDINGS: Tin Tin offer fails to lift Culturecom
SIU FUNG CERAMICS: Kumagai Gumi quits $800m rescue attempt
STEEL BASE LIMITED: Winding-up petition
THEME INTERNATIONAL: Lawsuit vs. investors in hosiery firm


* I N D O N E S I A *

ASTRA INTERNATIONAL: Sells microchip subsidiary for $90m


* J A P A N *

AOYAMA TRADING: Shares fall on exposure to Russia
JAPAN AIRLINES: Speeds up restructuring schedule
LONG TERM CREDIT: UBS may takeover LTCB's JV stakes
LONG TERM CREDIT: US in pre-summit call for reform
TOKYU DEPARTMENT STORE: To sell flagship


* K O R E A *

DAECHANGJIN CO.: Completes creditor reconciliation
HANBO STEEL: Hanbo sale faces hurdle after Posco drops bid
KIA MOTORS: Samsung denies plans to withdraw, close shop
SAMSUNG MOTORS: Vows to continue operations
SECHIN CO.: Selected as a workout target

SHIN KWANG INDUSTRY: Defaults on loans, declares bankruptcy


* M A L A Y S I A *

FACB CONSTRUCTION SDN BHD: Winding-up petition
LIFE OFFSET MARKETING SDN BHD: Voluntary winding-up
NGAN YIN GROUNDNUT FACTORY SDN BHD: Winding-up petition
OO AH LIP DEVELOPMENT: Winding-up petition
SOUTHFLORA SDN BHD: Winding-up petition

TELEKOM MALAYSIA: Moody's downgrades currency rating
TOOLMATIC (M) SDN BHD: Summons


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

AYALA CORP: Affiliate sells interest in Sydney property
SAN MIGUEL: In talks about overseas operations


* S I N G A P O R E *

BONVESTS HOLDINGS: Results announcement
INTER-ROLLING ENGINEERING: Results announcement


* T H A I L A N D *

CHRISTIANI & NIELSEN: Results announcement
CRC AHOLD: Montira joins Tops to help marketing
INTERNATIONAL ENGINEERING: Tris lowers debentures rating
K.R. PRECISION: Announces one for one rights offer
LAEM THONG BANK: Results announcement

NAKORNTHON BANK PCL: Reports progress on recapitalization
PETROLEUM AUTHORITY OF THAILAND: No equity restructuring
ROBINSON DEPARTMENT STORE: Robinson defaults on debts
SIAM COMMERCIAL BANK: Offer to buy stake in Nepalese bank
TPI POLENE: JP Morgan gives up its advisory role

UNION BANK OF BANGKOK: Results announcement


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

CHEMICAL LABORATORIES UNION: Members' voluntary winding up
----------------------------------------------------------
The creditors of Chemical Laboratories Union, which is
being voluntarily wound up, are required on or before
October 16, to send in their names, addresses and
particulars of their debts or claims to the Liquidators 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.


HONG KONG TELECOM: Union calls for details of layoff plan
---------------------------------------------------------
The Financial Times reports Hong Kong Telecom, one of Hong
Kong's largest employers, has received requests from its
employees' union for clarification of its layoff plan. The
union cited reports that the company is planning up to 700
layoffs and wage reductions for 5,000 employees before the
end of the year.

The company declined to honor the union's request.


HOPEWELL HOLDINGS: Suspends work on Indonesia power plant
---------------------------------------------------------
Hopewell said it declared force majeure on its Tanjung Jati
B power plant in Indonesia, suspending the project based on
continuing economic uncertainties in that country.

Gorden Wu, Hopewell's chairman said the notice was issued
to safeguard Hopewell's investment. PT HI Power Tubanan 1,
the project developer and an 80% owned unit of Hopewell,
said that under the terms of the contract, the project is
entitled to suspension under force majeure until conditions
improve.

Hopewell said it has been unable to raise financing for the
power project. HI power has unable to draw on the loans
from financiers to ensure completion of the Tanjung Jati B
project in accordance with initial time schedules. Total
costs to date, incurred and paid by Hopewell, are
approximately HK$4.8 billion, including an acquisition
premium of around HK$1.8 billion. The company is
considering making provision against such cost.


IMC HOLDINGS: Results announcement
----------------------------------
Maritime company IMC Holdings has plunged into the red,
posting a $13.85 million loss for the six months to 30
June. This compares with a net profit of $18.47 million for
the same period last year. The company was hard hit by an
exceptional loss of $16.15 million, representing losses
from disposal of vessels. Turnover shrank to $186.55
million compared with $228.89 million in the same period
last year.


NEW T&T: Recession forces Wharf unit into 13% cutback
-----------------------------------------------------
New T&T, the telecom arm of Wharf (Holdings) which is a
Hong Kong listed company, said it had laid off 13% of its
workforce in response to the economic recession and the
more competitive market place that lies ahead.

Analysts said the firings fuelled rumors New T&T was
slowing its telephone investments and soon would be merged
with sister company Wharf Cable to create a combined
delivery and content giant.

The company said the 80 employees -- mostly administrative
staff -- were dismissed as part of a corporate
restructuring to gear up to complete in the new
environment.


SING TAO HOLDINGS: Tin Tin offer fails to lift Culturecom
---------------------------------------------------------
According to the SCMP, Culturecom, an associate of Sing Tao
Holdings, confirmed yesterday that City Truth had offered
to buy its Chinese language flagship newspaper Tin Tin
Daily News. However, Culturecom has yet to hold any talks
with the party as the company is facing a change of control
as Sing Tao negotiates to sell part of its 43 percent
stake in the firm.

City Truth is reportedly owned by three former directors of
Tin Tin and proposed to buy the newspaper for less than $10
million. Analysts said the offer demonstrated the
lacklustre valuation of Tin Tin which had been losing money
due largely to fierce competition.

Culturecom, which also publishes comic books, performed
disappointingly with attributable loss widening to $75.62
million in the year ended in March from $15.54 million last
year. Its shares sank yesterday about 12 percent to five
cents despite news of the offer for Tin Tin.


SIU FUNG CERAMICS: Kumagai Gumi quits $800m rescue attempt
----------------------------------------------------------
According to the SCMP, sanitary-ware maker Siu-Fung
Ceramics Holdings says two members of a consortium formed
to restructure its debts of almost $3.2 billion remain
committed to the company despite the withdrawal of a third
consortium member.

Siu-Fung chairman Siegfried Lee Siu-fung said interested
parties were being sought to replace Kumagai.

The other two members of the consortium, mainland-backed
Shui Hua Development and Enterprises and Macau Jingqing
Development, yesterday extended to November 30 a deadline
to complete a proposed $800 million restructuring. Given
the limited time to complete the restructuring, Siu-Fung
would also be seeking help from Zhu Xiaohua, chairman of
the mainland's China Everbright, which has many different
subsidiaries in addition to Kumagai.

Mr Lee said the original consortium had confirmed its
commitment on Friday when all 25 creditors reached a deal.
However, Kumagai changed its mind overnight and informed Mr
Lee on Saturday that it was pulling out.

Hongkong Bank and Hang Seng Bank are the principal bank
creditors of Siu Fung in Hong Hong. These together have a
total exposure of about 80 per cent of the company's $2.2
billion Hong Kong debt. Siu-Fung also has 1.1 billion yuan
in debt in the mainland.

The Hong Kong Standard, like the SCMP, reports on the
withdrawal of Kumagai from the rescue plan for Siu Fung
Ceramics.

The report says that a red-chip analyst thought it unlikely
that China Everbright's two listed firms in Hong Kong,
China Everbright International and China Everbright Ltd.
would replace Kumagai Gumi as both were in tight financial
positions. He also said Kumagai's decision to quit was
welcomed by investors as reflected by its share price.

Siu-Fung chairman Siegfried Lee said the company's cash
flow has increased by $5 million following the disposal of
sanitary products unit to Kumagai recently.


STEEL BASE LIMITED: Winding-up petition
---------------------------------------
Notice is hereby given that a petition for the winding-up
of Steel Base Limited by the High Court of Hong Kong was,
on the 8th day of September, 1998, presented to the said
Court by Ngan Chiu Hung 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.  


THEME INTERNATIONAL: Lawsuit vs. investors in hosiery firm
----------------------------------------------------------
According to the SCMP, Theme International Holdings has
begun a civil lawsuit against fellow shareholders of a
hosiery company, Fitlady Investment Holdings, in which
Theme has a 40 percent stake.

The retailer is claiming declarations of right and/or a
court order for the specific performance of the terms of
the shareholder's agreement.

The defendants named are World Prix Asia, registered in the
British Virgin Islands with an office in Hong Kong, and The
SCM China Growth Fund LDC, registered in the Caymen
Islands, which also bought a 10 percent stake in Fitlady in
June 1996.

The specific performance outlined in the agreement governed
the terms upon which they would be shareholders. It also
outlined their relationship as shareholders in the company,
particularly the requirement that the parties procure that
it adopts new articles of association.

Theme is also claiming costs and any further or other
relief to which it is entitled.


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

ASTRA INTERNATIONAL: Sells microchip subsidiary for $90m
--------------------------------------------------------
The Financial Times reports Indonesian car maker Astra
International said it sold its semiconductor subsidiary,
Astra Microntonics Technology, to Newsbridge Asia, a US
private equity firm, for $90 million. Newsbridge is backed
by Texas Pacific Group and Richard C. Blum & Associates.

Astra has stopped paying principal on $2 billion of
offshore debt, although it is still current on interest
payments. The company says it is cutting costs and is
offering creditors a debt restructuring in October.


=========
J A P A N  
=========

AOYAMA TRADING: Shares fall on exposure to Russia
-------------------------------------------------
Bloomberg reports shares of Aoyama Trading Co. fell 415 yen
to 2,755 on concern about the company's exposure to Russia.
The operator of chain stores specializing in men's clothes
said it doesn't expect to lose any money on its 9 billion
yen of dollar-denominated Russian bonds as it intends to
hold onto the bonds until they mature.


JAPAN AIRLINES: Speeds up restructuring schedule
------------------------------------------------
Japan Airlines Co. has decided to speed up the original
schedule of its four-year restructuring plan from fiscal
1998 to achieve the cost-cutting target one year early by
fiscal 2000, The Nihon Keizai Shimbun has learned. As part
of the program, JAL aims to cut some 1,800-2,000 jobs out
of ground service crews, or 300-500 more than was first
planned.

Although Japan's flag carrier still aims to resume dividend
payments this fiscal year for the first time in seven
years, its business has been hit by sluggish growth in
passenger traffic, particularly on Asian routes, and
falling airfares.

JAL's original restructuring plan called for a 10% cut in
the cost of air transport and the elimination of 1,500
ground service jobs by fiscal 2001. The company used more
than 150 billion yen of retained profit to wipe its books
clean of cumulative losses at the end of fiscal 1997.


LONG TERM CREDIT: UBS may takeover LTCB's JV stakes
---------------------------------------------------
According to the Financial Times, Long Term Credit Bank is
planning to sell its year-old joint venture stakes with UBS
of Switzerland.

The move would likely give UBS complete control over the
asset management ventures and effective control over the
investment banking group. UBS already has 100 percent
control over the private banking venture.


LONG TERM CREDIT: US in pre-summit call for reform
--------------------------------------------------
In a report that also covers talks between the US and Japan
for the restoration of economic health of Japan, the SCMP  
says that under Japan's ruling party's latest banking
legislation proposal, the party will accept opposition
demands that the troubled Long Term Credit Bank be placed
temporarily under state control.

The issue of how to deal with the issue regarding LTCB is
the main obstacle in the marathon negotiations over the
reform bills.

Japanese Prime Minister Keizo Obuchi's Liberal Democratic
Party had insisted that LTCB should be bailed out under the
existing law, which allows the government to use 13
trillion yen of public money to prevent ailing banks from
collapsing.

But, as reports said, the ruling party reversed the stance,
conceding that LTCB will be handled under a new mutually
agreed scheme, which will let the ailing bank be liquidated
in principle before being put under state control.

The Yomiuri Shimbun said the latest concession might break
the impasse in parliament over the crucial bills as early
as today.


TOKYU DEPARTMENT STORE: To sell flagship
----------------------------------------
Nikkei reports Tokyu Department Store Co. has decided to
sell its struggling flagship store in Tokyo's Nihonbashi
district, according to sources.

The firm has already approached Orix Corp. and foreign-
affiliated companies with an offer to sell the store for an
estimated price of at least 60 billion yen. Such a deal
would mark the first time a major Japanese department store
has sold a flagship store.

The firm will use the proceeds from the planned sale to
make up for expected losses after taking restructuring
measures.

The Nihonbashi store will continue operating for some time
after the sale, but Tokyu Department Store will also
consider closing it.

Amid a consumption slump, Tokyu Department Store's sales
fell to an estimated 143 billion yen in the February-July
period, down 11% from the same period in the previous year.
In addition, the firm appears to have posted a pretax loss
of 500 million yen. In July, sales at the Nihonbashi store
declined by 13.1% from a year earlier.


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

DAECHANGJIN CO.: Completes creditor reconciliation
--------------------------------------------------
The Seoul District Court has advertised in the Korean
language Maeil Kyungje that the Daechangjin Company has
completed its creditor reconciliation procedure. The
company's address is 396-7 Hapchong-dong, Mapo-gu, Seoul,
and its president it Mr. Kim Sung-taek.


HANBO STEEL: Hanbo sale faces hurdle after Posco drops bid
----------------------------------------------------------
The SCMP says that Pohang Iron & Steel (Posco), the world's
second largest steel manufacturer, will not bid for Hanbo
Steel, making it harder for South Korea to sell the
bankrupt company. The report says that the sale of Hanbo is
a key test of the government's ability to attract
investment and help ride out a recession.


KIA MOTORS: Samsung denies plans to withdraw, close shop
--------------------------------------------------------
According to the SCMP, fledgling Samsung Motors has no
plans to give up its operations, amid speculation it was
forced to bow out if it fails to acquire Kia Motors Corp.
The denial coincided with a report that Ford was still
interested in taking over Kia despite its decision last
week to withdraw from the race.

Analysts said Samsung has neither the experience nor the
resources to turn Kia into a viable business, warning that
an attempt could weaken the whole Samsung Group and the
Korean economy.

But Seoul's Yonhap news agency reported yesterday that Ford
had indicated it might reenter the deal after the second
auction takes place. A Kia Motors official was quoted as
saying Ford sent a letter to Kia the day after it announced
its withdrawal last Friday saying it was still in the best
position to resolve the troubled firm's problems.

According to Kia, Ford's letter means it was still open to
talks for the possible takeover of Kia and Asia Motors if a
new auction failed to produce a successful bidder.

Creditors last week agreed to write off some of the
companies' massive US$8.7 billion debt, but analysts said
at least another $2 billion was needed to be wiped out to
make a deal viable.

The Hong Kong Standard also reports on the denial by
Samsung, amid speculation, of its plans to stop operation,
and of plans to withdraw from the Kia auction.

Despite the 2.9 trillion won write-off, liabilities still
exceed assets to the tune of 5.1 trillion won, leading to
speculation that the second auction will be aborted again.
But the auction office has said it would go ahead with the
second auction.


SAMSUNG MOTORS: Vows to continue operations
-------------------------------------------
According to the SCMP, fledgling Samsung Motors has no
plans to give up its operations, amid speculation it was
forced to bow out if it fails to acquire Kia Motors Corp.
The denial coincided with a report that Ford was still
interested in taking over Kia despite its decision last
week to withdraw from the race.

Analysts said Samsung has neither the experience nor the
resources to turn Kia into a viable business, warning that
an attempt could weaken the whole Samsung Group and the
Korean economy.


SECHIN CO.: Selected as a workout target
----------------------------------------
The Korean language Maeil Kyungje has reported that the
Pusan Bank has selected the Seshin Company, a detergent
makers, as a workout target. The bank will hold a creditor
meeting for the Seshin Company on September 23, 1998.

The workout procedure is aimed at helping firms hit by
temporary liquidity shortages to regain financial health
and competitiveness through debt relief and creditor
offered restructuring programs. It is also hoped to
reduce banks' non-performing loans by improving borrowers'
debt payment capabilities.

However, the workout can also result in the shareholders
being asked to reduce capital and the disposal of
unprofitable assets and subsidiaries. Furthermore, there is
a compulsory shake-up of the top management of "workout
companies".


SHIN KWANG INDUSTRY: Defaults on loans, declares bankruptcy
-----------------------------------------------------------
The Asian Wall Street Journal reports that dye maker Shin
Kwang Industry Company has gone bankrupt and its shares
were suspended from trading temporarily on the Korea Stock
Exchange.  Shin Kwang reported defaulted on loans of 650
million won ($468,300) that it had from the National
Agricultural Cooperative Federation.  

A similar report in the Korean language Maeil Kyungje's
Business Brief section reported that the trading of this
company's stock will be suspended until its insolvency is
official approved by the courts.


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

FACB CONSTRUCTION SDN BHD: Winding-up petition
----------------------------------------------
Syarikat Tung Yip Sdn Bhd on 29/7/98 petitioned for the
winding-up of FACB Construction Sdn Bhd (whose parent
company is listed on the KLSE).


LIFE OFFSET MARKETING SDN BHD: Voluntary winding-up
---------------------------------------------------
The members of Life Offset Marketing Sdn Bhd on 8/9/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 15/10/98.


NGAN YIN GROUNDNUT FACTORY SDN BHD: Winding-up petition
-------------------------------------------------------
Ngan Tuck Seng and Ngan Tuck Hoi on 25/6/98 petitioned for
the winding-up of Ngan Yin Groundnut Factory Sdn Bhd. The
petition is directed to be heard on 23/9/98.


OO AH LIP DEVELOPMENT: Winding-up petition
------------------------------------------
Pioneer Concrete (Malaysia) Sdn Bhd on 10/8/98 petitioned
for the winding-up of Oo Ah Lip Development & Construction
Sdn Bhd. The petition is directed to be heard on 12/11/98.


SOUTHFLORA SDN BHD: Winding-up petition
---------------------------------------
Perwira Affin Bank Bhd on 5/8/98 petitioned for the
winding-up of Southflora Sdn Bhd. The petition is directed
to be heard on 2/11/98.


TELEKOM MALAYSIA: Moody's downgrades currency rating
----------------------------------------------------
Moody's Investors Service Inc. said it cut its long-term,
foreign-currency rating of Telekom Malaysia Bhd. to Baa3
from Baa2. Around $850 million in debt securities are
affected by the rating downgrade.

Moody's cut Telekom's rating after cutting Malaysia's long-
term, foreign-currency sovereign rating to Baa3 from Baa2.
The rating agency also cut the long-term foreign-currency
country ceiling for Malaysian banks to below investment
grade at Ba1 from Baa3.

Short-term ratings for debt obligations and for bank
deposits are now "not prime", compared with Prime-3
previously.


TOOLMATIC (M) SDN BHD: Summons
------------------------------
Special Steel & Alliance Sdn Bhd issued a summons against
Toolmatic (M) Sdn Bhd for a debt claim of RM29,490.68


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

AYALA CORP: Affiliate sells interest in Sydney property
-------------------------------------------------------
BusinessWorld reports anticipating an oversupply in office
spaces in the Australian property market in the coming
months, the Australian subsidiary of Ayala Corp. and Ayala
Land, Inc. recently sold its interest in Tattersalls
Building in Sydney, Australia worth A$56.5 million
(US$34.04 million) to a listed real-estate investment trust
company.

Ayala International Property Pte. Ltd. (AIPPL) sold the
said property to Australian-based General Property Trust of
Lend Lease.

A source from Ayala Corp. told BusinessWorld yesterday that
the decision to sell the office building was more of a
defensive move on the part of the companies since they are
expecting unfavorable developments in the property market   
overseas.

The source added that the sale was done in order to boost
liquidity although the said property was sold at the same
amount it was bought by AIPPL 18 months ago.


SAN MIGUEL: In talks about overseas operations
----------------------------------------------
According to the Financial Times, troubled food and
beverage conglomerate San Miguel has announced it is
talking with foreign beer makers about forging alliances in
its overseas operations.

The Times reports a Philippine newspaper speculated the
other beer makers included Anheuser Busch (US), Carlsberg
(Denmark) and Heineken (Netherlands).


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

BONVESTS HOLDINGS: Results announcement
---------------------------------------
Hefty provisions for its development properties knocked
Bonvests Holdings off track to post a whopping interim loss
of $48.2 million.

The mainboard property and retail group blamed its losses
for the six months ended June 30 mainly on provisions of
$44.2 million for two residential projects and a $2.4
million write-down for trading stock. The company did not
give further details.

For the period under review, turnover was down 19.6 per
cent to $65.9 million because of a drop in revenue from
development projects such as 19 Shelford Road, which was
completed in August last year, it said.


INTER-ROLLING ENGINEERING: Results announcement
-----------------------------------------------
Inter-Roller Engineering posted $3 million net interim
losses as turnover dipped 16 per cent to $8.7 million. The
turnover fall was despite a healthy order book of some $50
million brought forward from 1997, directors said.

The group has also made an exceptional provision of $1.5
million for investments in property development projects
and for doubtful debts.


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

CHRISTIANI & NIELSEN: Results announcement
------------------------------------------
Christiani & Nielsen (Thai) Plc suffered a net loss of only
Bt28.4 million for its operations in the second quarter
this year compared to a net loss of Bt388.92 million during
the same period a year ago. The company's six-month
financial statement showed Bt206.53 million against a net
loss of Bt619.94 million in the same period last year.


CRC AHOLD: Montira joins Tops to help marketing
-----------------------------------------------   
The Bangkok Post reports CRC Ahold, the operator of Tops
supermarkets, has appointed Montira Rimpanarom, a former
managing director of Smart Royalty, as assistant vice-
president.

Ms Montira, who took up her post yesterday, will oversee
all marketing by Tops.

In May, Royal Ahold NV took over the Central Retail Corp's
stake in the Tops operator. Royal Ahold agreed to provide a
loan for the Central Group, Central Retail Corp's parent,
in exchange for the stake.

The Central Group will repay the loan in eight years and
retain the right to buy back a 50% stake in Tops, which has
38 branches nationwide.

An industry source said it was possible that Central would
not seek a buy-back because the group wanted to focus on
its core businesses. Central recently sold its stake in the
Thai Cencar Co, the operator of the Carrefour supercentre.


INTERNATIONAL ENGINEERING: Tris lowers debentures rating
--------------------------------------------------------
The Bangkok Post reports Thai Rating and Information
Service (Tris) has lowered the rating of 1.2 billion baht
in senior convertible debentures issued by International
Engineering Plc to "C" from "B+", reflecting the company's
fragile financial profile, including insufficient funds
from operation to make principal repayments.

International Engineering, the agency said, had a high debt
to capitalisation ratio that breached a condition of its
convertible debentures. But the company was restructuring
its debts, which totalled 3.23 billion baht as of June 30.

The rating also indicated a decrease in total revenue
mainly because of a slump in cellular handset sales.
Revenue totalled 819 million baht in the first half, 29%
less than in the same period of last year.

The agency said it was greatly concerned about
International Engineering's ability to repay principal in
the near term. The company's debt to capitalisation ratio
in the first half was a high 92%, mainly because it had
absorbed all exchange-rate losses last year.


K.R. PRECISION: Announces one for one rights offer
--------------------------------------------------
The Bangkok Post reports K.R. Precision yesterday said it
was planning to issue 26.6 million new shares through a one
for one rights issue at a price of not less than 10 baht
per new share. The company is a maker of computer and
precision engineering components.

In a statement to the Stock Exchange of Thailand, the
company said the proposed issue, approved by its board on
September 11, would raise the company's registered capital
to 545.3 million baht.

On the stock market, company shares reflected investor
reluctance to the new offer with the price falling on both
the local and foreign board. On the local board, the
closing price was 10.75 down 4.50 baht, while on the
foreign board it closed at 9.90 baht, down 5.35 baht.


LAEM THONG BANK: Results announcement
-------------------------------------
Laem Thong Bank reports audited half year results as a
net loss of Bt14.8 billion, which compares to a loss of
Bt568 million for the corresponding 1997 period.


NAKORNTHON BANK PCL: Reports progress on recapitalization
---------------------------------------------------------
Nakornthon Bank PCL has given the SET a progress report on
its recapitalization. Since the announcement of the
Financial Sector Restructuring (FSR) package on August 14  
by the Ministry of Finance, Nakornthon Bank says it has
been working with the Bank of Thailand to revise the
recapitalization proposal submitted to the Bank of Thailand
on July 24. This has been done in order to incorporate the
FSR package and shorten the recapitalization process.

As a result, Nakornthon Bank now proposes to submit the
revised recapitalization proposal to the BoT by September
15, 1998.


PETROLEUM AUTHORITY OF THAILAND: No equity restructuring
--------------------------------------------------------
The Nation reports equity restructuring is not a feasible
option for the Petroleum Authority of Thailand to salvage
its oil subsidiaries in the present environment where world
oil prices are at their lowest in ten years, the PTT
governor said.

Pala Sookawesh said the state-owned oil and gas enterprise,
which is talking with some Middle East investors about
selling its stake in oil refining companies, is finding it
difficult to succeed with the deals because of changing
circumstances in the global oil industry.

As a result, PTT is reviewing its investment and operating
plans and might have to suspend its expansion, he said.
Good-term debt financing is also no longer available for
most Thai firms.

The government has pulled PTT out from a list of state-
owned enterprises to be privatised in the latest IMF letter
of intent, although the national oil and gas company was
included in the third Letter of intent.


ROBINSON DEPARTMENT STORE: Robinson defaults on debts
-----------------------------------------------------
The Asian Wall Street Journal reports that Robinson
Department Store has missed payments on foreign debentures
and currency-swap agreements that total to $200 million.  

The article said that the Central Retail Corporation, which
controls Robinson, has stated that Robinson has missed
interest payments on three foreign denominated debenture
issues and a currency-swap agreement.  

An official at the Thai Bond Dealing Center also stated
that Robinson additionally missed interest payments in July
on a one billion baht ($24.6 million) of debenture.  

Details provided in a report to the Stock Exchange of
Thailand said that Robinson missed the first payment on
June 10 when it failed to service semiannual interest on
1997 issued yen-dominated debentures valued at $50 million.  

On July 26, the department store also failed to make a
semiannual interest payment on a currency-swap agreement
valued at nearly $40 million. On the next day, Robinson
didn't pay annual interest on convertible debentures worth
about $50 million.


SIAM COMMERCIAL BANK: Offer to buy stake in Nepalese bank
---------------------------------------------------------
The Bangkok Post reports Siam Commercial Bank has been
approached by a Nepalese investor offering to buy a 24.5%
stake in the Bank of Kathmandu, according to Panit
Visutyothapibul, a senior vice-president at SCB.

He declined to reveal the price Siam Commercial Bank would
fetch from the sale, saying only that the bank would not
lose on its investment.

Mr Panit said the distance involved was a complication, and
that reducing SCB's stake would help cut costs. Two SCB
executives now posted to the bank would return to Thailand
after the transaction was approved by the Nepalese
Securities and Exchange Commission.

The Bank of Kathmandu's top Nepalese executive said that
SCB would reduce its stake in the joint venture to 5.5%
from 30%.


TPI POLENE: JP Morgan gives up its advisory role
------------------------------------------------
The Nation reports details of JP Morgan Securities Asia's
decision to withdraw as financial adviser to TPI Polene Plc
for its debt restructuring program. Merrill Lynch will
continue to carry on, the cement and petrochemical firm
said in a statement Tuesday.

JP Morgan Securities Asia was appointed as a co-financial
adviser on Aug 4, but no reason was offered Tuesday for its
withdrawal.

Pishnu Suntharanund, chief financial officer, said, "I have
no idea why JP Morgan resigned. Perhaps, it has a limited
number of staff to work on debt restructuring."

Besides, JP Morgan was on a shortlist to advise the Bank of
Thailand on privatisation of the Bangkok Metropolitan and
Siam City Banks. He said most staff would be assigned to
that.

TPIPL expects to sign the debt restructuring plan with
around 60 to 70 creditors by the fourth quarter of this
year. The company is carrying a US$1.3 billion debt with
two-thirds of that in US dollars.

Pishnu said TPIPL's main problem was the high burden of
interest payments -- around Bt3 billion for the second half
of 1998 against Bt2.9 billion for the first half. Due to
the baht devaluation, its interest payments had been
doubled.

TPIPL's registered capital is Bt5,075 million, while its
shareholder equity is Bt Bt25.2 billion.


UNION BANK OF BANGKOK: Results announcement
-------------------------------------------
The Union Bank of Bangkok PCL reports audited half year
results as a net loss of Bt14.6 billion, which compares to
a net profit of Bt135 million for the corresponding 1997
period.


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
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