---

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 21, 1998, Vol. 1, No. 147

                    Headlines


* C H I N A   &   H O N G   K O N G *

BRING WAY LIMITED: Winding-up order
CHINA PRIDE INDUSTRIAL: Winding-up order
CHINTEX OIL AND GAS: Proceeding in de-listing procedure
DAIDO CONCRETE: Yearly results announcement to be delayed
FOOK KIN ENTERPRISES: Creditors' meeting

GENECO DEVELOPMENT LIMITED: Winding-up petition
GREAT WARD DEVELOPMENT: Creditors' meeting
HING CHEONG INDUSTRIAL LIMITED: Winding-up petition
HONG KONG LAND: Reports 18% lower profits
MAGICIAN INDUSTRIES: Denies reports of further layoffs

MANDARIN ORIENTAL: Net down 72%
PEREGRINE FIXED INCOME: Judge keeps liquidation in court
POSTRON PETROCHEMICAL INVESTMENTS: Winding-up order
SHENYIN WANGUO: Results announcement
UNI-JOHNSON DEVELOPMENT: Winding-up order

WAH HENG GLASS & METAL: Winding-up order


* I N D O N E S I A *

GARUDA INDONESIA: Garuda may sell base
PEGADAIAN: Pawn-shop chain appeals for cash


* J A P A N *

ANRITSU CORPORATION: Cuts pretax forecast
FUJI ELECTRIC: Likely pretax losses
HITACHI LIMITED: To close wafer production unit in October
KONISHI COMPANY: Pretax forecast dives
KOSUGI SANGYO: Results announcement

NEC CORP: Expects loss amid chip slump, economic woes
NIPPON LIGHT METAL: Nippon Light Metal's ratings cut
RENOWN INC: First-half pretax loss falls to 4.73 bln yen
SUMITOMO BANK: Suit over $50 million deal
SUMITOMO BANK: To cut back at UK brokerage unit

STANLEY ELECTRIC: Stanley Electric's ratings cut
YAHAGI CORPORATION: Declares bankruptcy


* K O R E A *

ANAM SEMICONDUCTOR: In talks with investors
IL DONG PHARMACEUTICAL: Il Dong named as a workout target
RAINBOW ELBA TECH: Completes creditor reconciliation
RAINBOW VISION: Completes creditor reconciliation
SEOUL CHUNSANG: Completes creditor reconciliation

YOUNG-DO CONSTRUCTION: Starts creditor reconciliation


* M A L A Y S I A *

BANK BUMIPUTRA: Commerce Asset seals Bumiputra tie-up
IMMETEC SDN BHD: Winding-up petition
SIME DARBY: Expects to post huge losses
SUNGEI WAY HOLDINGS: Move to lower debt
TACONA SDN BHD: Winding-up petition

TAN CHONG MOTOR HOLDINGS BHD: Results announcement


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

NATIONAL POWER CORP: Told to raise rates for profitability
PHILIPPINE AIRLINES: PAL plans to close
UNIWIDE HOLDINGS: Confirms restructuring talks


* S I N G A P O R E *

HEWLETT-PACKARD: Restructuring plans include job cuts


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

BRING WAY LIMITED: Winding-up order
-----------------------------------
A winding-up order notice is hereby given that Bring Way
Limited is undergoing a companies winding-up proceedings
(No 527 of 1998) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is on September 9, 1998. The date of presentation of
petition was August 4, 1998.    


CHINA PRIDE INDUSTRIAL: Winding-up order
----------------------------------------
A winding-up order notice is hereby given that China Pride
Industrial Limited is undergoing a companies winding-up
proceedings (No 42 of 1997) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 8, 1998. The date of
presentation of petition was January 22, 1997.    


CHINTEX OIL AND GAS: Proceeding in de-listing procedure
-------------------------------------------------
The SEHK has announced that Chintex Oil and Gas Company
Limited will be put into the third stage of the De-listing
Procedure. Pursuant to the De-listing Procedure, the
Company will be given a final six months for the submission
of a valid resumption proposal. If the Company does not
therefore put forward a valid resumption proposal by March
16, 1999, the Exchange intends to cancel the listing of the
Company.

Dealing in the shares of the Company has been suspended
since September 1, 1989.  Since its suspension, the Company
has not been able to implement a valid resumption proposal.  
A valid resumption proposal means a proposal that, if it is
implemented, would enable an issuer to demonstrate that it
complies with paragraph 38 of the Listing Agreement.  
Paragraph 38 of the Listing Agreement requires an issuer to
carry out a sufficient level of operations or have tangible
assets of sufficient value and/or intangible assets for
which a sufficient potential value can be demonstrated to
warrant the continued listing of the issuer's securities on
the Exchange.

Based on the Company's annual report for the year ended
March 31, 1998, the Company has a deficiency of
shareholders' funds of about HK$7.2 million and has no
operating assets and no operations in the last five years.  
The Company does not have sufficient assets or operations
for listing.

Accordingly, the third stage of the De-Listing Procedure
will apply. The Company will be given a final six months
for the submission of a valid resumption proposal. If the
Company does not submit a valid resumption proposal by
March 16, 1999, the Exchange intends to cancel the listing
of the Company.


DAIDO CONCRETE: Yearly results announcement to be delayed
---------------------------------------------------------
Daido Concrete (H.K.) Limited has informed the SEHK that
the audited annual results of the Company and its
subsidiaries for the year ended 30th April, 1998 will be
delayed to 19th October, 1998. Additional time is required
for completing the accounts and therefore the audit of the
Group.

The Company continues to discuss with its financial
creditors about the Group's financial position and
negotiate terms by which the Group can be restructured.
Even though no formal standstill agreement has been reached
with the Group's financial creditors, the Company expects
informal and temporary standstill arrangements with its
financial creditors to continue.

The Company has been in negotiations with a number of
potential investors regarding the possibility of
restructuring the Group. As announced on 19th June, 1998,
the Company entered into an exclusivity agreement with Paul
Y.-ITC Construction Holdings Limited. This exclusivity  
agreement expired on 30th July, 1998.

The Company continues to discuss restructuring proposals
with interested parties and the Board believes that the
Group has sufficient working capital and business
opportunities to continue as a going concern for the
foreseeable future so long as the informal and temporary
standstill with its financial creditors continues.

An application has been submitted to The Stock Exchange of
Hong Kong Limited for (i) a waiver to comply with paragraph
11(1)(a) of the Listing Agreement requiring the Company to
publish in newspapers a preliminary announcement containing
the information required by paragraph 11(2); and (ii) an
extension of time to publish the same in newspapers on or
before 19th October, 1998.


FOOK KIN ENTERPRISES: Creditors' meeting
----------------------------------------
Notice is hereby given that a meeting of the creditors of
Fook Kin Enterprises Limited will be held on 9th October,
1998 at 22/F., Wing On Center, 111 Connaught Road Central,
Hong Kong for the purposed of receiving accounts of the
liquidators' acts and dealings and of the conduct of the
winding-up of the company during the preceding year.


GENECO DEVELOPMENT LIMITED: Winding-up petition
-----------------------------------------------
Notice is hereby given that a petition for the winding-up
of Geneco Development Limited by the High Court of Hong
Kong was, on the 31st day of August, 1998, presented to the
said Court by Neweast Development 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.  


GREAT WARD DEVELOPMENT: Creditors' meeting
------------------------------------------
Notice is hereby given that a meeting of the creditors of
Great Ward Development Limited (in creditors' voluntary
liquidation) will be held on 5th October, 1998 at So Yuen
Yau,(Provisional Liquidator), Room 807 , Sino Center, 582-
592 Nathan Road, Kowloon for the purpose provided for in
Section 228A,241,242,243,244 of the companies Ordinance.


HING CHEONG INDUSTRIAL LIMITED: Winding-up petition
---------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Hing Cheong Industrial Limited by the High Court of Hong
Kong was, on the 28th day of August, 1998, presented to the
said Court by Cheong Ming Investment Company Limited 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.  


HONG KONG LAND: Reports 18% lower profits
-----------------------------------------
The Financial Times reports Hong Kong Land reported an 18
percent decline in net profits, from US$206.4 million to
US$168.9 million. The group also made provisions of $30
million against certain property trading investments and an
Indonesian toll road.


MAGICIAN INDUSTRIES: Denies reports of further layoffs
------------------------------------------------------
Magician Industries (Holdings) Limited has denied press
reports that it plans further workforce reductions this
year. The group has also denied it plans any major debt
restructuring.

The company has informed the SEHK that it has been
undergoing an ongoing cost control exercise in the past
three years in order to enhance our Group's competitiveness
in the market. These programs would unavoidably lead to a
gradual decrease in the number of staff and workforce. As a
result of these programs, the workforce of the Group was
reduced from time to time over a period of three years. The
Group does not have any immediate plans to execute any
major lay-off program.

The financial condition of the Group is healthy and all of
its repayment obligations have been met. The Group is not
negotiating with any of its bankers to reschedule its
repayment obligations nor has any plan to restructure its
debts. However, the Group is exploring the idea of
replacing short term borrowings with long-term debts to
reduce the overall cost of borrowings of the Group. It is
always the policy of the Company to keep reviewing its
capital structure and funding requirements.

Nevertheless, the Company is not under serious negotiation
with any parties in respect of an issuance of new shares.


MANDARIN ORIENTAL: Net down 72%
-------------------------------
The Financial Times reports interim net profits at Mandarin
Oriental International, the hotel unit of Jardine Group,
are down by 72%, from US$33.9 million to US$9.6 million.
The dividend has been slashed by 70% from 1.65 cents to .50
cents. Earnings per share fell 72 percent, from 4.87 cents
to 1.36 cents.


PEREGRINE FIXED INCOME: Judge keeps liquidation in court
--------------------------------------------------------
According to the SCMP, a judge yesterday refused the
request by creditors to end the involvement of the court
and the Official Receiver in the liquidation, which has so
far realised HK$2.17 billion, and slash fees, expected to
be up to HK$95 million. The court said the matter is one of
public concern, stating that there is still considerable
speculation and disquiet over the possible reasons for the
Collapse, which are still to be identified.

Mrs Justice Doreen Le Pichon added that during the period
of provisional liquidation, the conduct of the provisional
liquidation came under judicial criticism; Price Waterhouse
came under fire in June after the firm charged fees of
HK$76 million for 63 days of work.

A majority of creditors had asked liquidators to seek an
order from the judge that the current compulsory winding-up
be converted into a creditors' voluntary winding-up.

In a compulsory winding up, the fee payable is 0.5 percent
of the gross amount of assets realised and brought to
credit. There is an additional fee payable on the aggregate
amount of assets realised, based on a sliding scale.

Up to July 17, HK$2.17 billion had been realised and
estimates on further realisations by the liquidators ranged
from HK$1.45 billion to HK$5.6 billion.

The judge declared that the fee involved, if a conversion
were sanctioned, thus ranges between HK$32.5 million and
HK$95 million. She calculated that the fees sought to be
avoided could be translated into an increase in the rate of
dividend distributable to a creditor of between 0.25 per
cent and 0.7 per cent. This took into account the proofs of
debt submitted as of August 20 which were to the order of
HK$12.8 billion.

PFI was the centre of the collapse of Peregrine Investments
Holdings in early January. Run by Andre Lee, it was
responsible for the US$265 million loan to Indonesian taxi
firm Steady Safe, which eventually brought about the
group's demise.


POSTRON PETROCHEMICAL INVESTMENTS: Winding-up order
---------------------------------------------------
A winding-up order notice is hereby given that Postron
Petrochemical Investments Company Limited is undergoing a
companies winding-up proceedings (No 543 of 1998) in the
High Court of the Hong Kong Special Administrative Region
court of first instance. The date of order is on September
9, 1998. The date of presentation of petition was August
10, 1998.    


SHENYIN WANGUO: Results announcement
------------------------------------
Shenyin Wanguo (HK) suffered losses of $29.05 million in
the first half of the year, from a deposit of $50.53
million a year earlier. Turnover fell 39.7% to $260.93
million from $432.91 million previously.  


UNI-JOHNSON DEVELOPMENT: Winding-up order
-----------------------------------------
A winding-up order notice is hereby given that Uni-Johnson
Development Limited is undergoing a companies winding-up
proceedings (No 380 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 9, 1998. The date of
presentation of petition was June 2, 1998.    


WAH HENG GLASS & METAL: Winding-up order
----------------------------------------
A winding-up order notice is hereby given that Wah Heng
Glass & Metal Products Limited is undergoing a companies
winding-up proceedings (No 541 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on September 9, 1998.  
The date of presentation of petition was August 10, 1998.    


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

GARUDA INDONESIA: Garuda may sell base
--------------------------------------
According to the SCMP, the state Antara news agency quoted
a Garuda official as saying that the airline will build an
office near its maintenance facility at the airport as soon
as it completes the streamlining of its operations, but
Garuda spokesman Mr Pudjobroto declined to confirm the
report, saying he knew only of a plan to move management
near its airport maintenance facility to closely monitor
daily operations.

There is also speculation that Garuda Indonesia may sell or
lease its headquarters building to help it ride out the
country's severe financial crisis, but Mr Pudjobroto said
this had yet to be decided.


PEGADAIAN: Pawn-shop chain appeals for cash
-------------------------------------------
According to the SCMP, Indonesia's cash-strapped state pawn
shop chain Pegadaian, the lifeline to millions in the
present economic crisis, is seeking 100 billion rupiah in
liquidity credits from the central bank.

Pugadaian spokesman said that the company had been facing
serious liquidity problems since the middle of last month
and has been unable to give out loans of more than one
million rupiah to people pawning assets.

He said that because of the lack of cash, payments to
clients depended on the receipts from clients redeeming
assets, to provide new loans the following day, but people
are now increasingly extending their loans, paying the
interest on the money but not the principal. The cash
shortage meant Pegadaian was prioritising requests for
small loans of up to one million rupiah.

There is a long list of borrowers to be dealt with every
day. Pegadaian had attempted to sell convertible bonds
worth 150 billion rupiah but only a third had been taken
up. He said that the company's rates are much less
attractive than the Bank Indonesia's money certificates.


=========
J A P A N  
=========

ANRITSU CORPORATION: Cuts pretax forecast
-----------------------------------------
Bloomberg reports shares of Anritsu Corp. fell as much as
88 yen to 902, a 52-week low, as the maker of electronic
equipment cut current, or pretax, profit forecasts 95
percent to 100 million yen ($750,000) for the half-year
ending September.


FUJI ELECTRIC: Likely pretax losses
-----------------------------------
Bloomberg reports shares of Fuji Electric Co. fell as much
as 21 yen to 280, a 52-week low. The electric machinery
maker is likely to report a pretax loss of 1 billion yen
for the half-year ending Sept. 30, compared with a pretax
profit of 4.1 billion yen for the same period last year,
the Nihon Keizai newspaper said, without citing sources.
That would be the first half-year pretax loss in 22 years.


HITACHI LIMITED: To close wafer production unit in October
----------------------------------------------------------
Reuters reports Hitachi Ltd says it's closing a wafer-
production unit of its wholly owned subsidiary next month.
The unit, Ibaraki Semicon Material Co Ltd, will transfer
production of eight-inch epitaxial wafers to its parent
Hitachi Tokyo Electronics, a spokesman for Hitachi said.
The move came as growth in demand for the wafers had not
been up to the company's initial expectations amid
continuing slump in the semiconductor market.


KONISHI COMPANY: Pretax forecast dives
--------------------------------------
Bloomberg reports shares of Konishi Co. fell as much as 20
yen to 1,210. The maker of adhesive and construction
sealant cut its parent pretax profit forecast 48.6 percent
to 750 million yen for the half-year ending Sept. 30.
That's 40 percent less than the most recent forecast by
Toyo Keizai.


KOSUGI SANGYO: Results announcement
-----------------------------------
Bloomberg reports shares of Kosugi Sangyo Co. fell as much
as 10 yen to 140, a 52-week low, as the company reported a
current or pretax, loss of 1.89 billion yen for the half
year ended July 31.


NEC CORP: Expects loss amid chip slump, economic woes
-----------------------------------------------------
Reuters reports NEC Corp. confirmed reports today it will
plunge deep into the red in the first half of this business
year, hammered by a global chip slump. NEC, Japan's biggest
semiconductor maker, said it expects to post a group net
loss of $151 million in the six months to September -- its
first loss in five years. NEC managing director Shigeo
Matsumoto said weak prices of computer memory chips known
as dynamic random-access memories (DRAM) sparked a slide in
the prices of other types of semiconductors, weighing on
its earnings.


NIPPON LIGHT METAL: Nippon Light Metal's ratings cut
----------------------------------------------------
The Asian Wall Street Journal reported that Japan Rating
and Investment Information Inc. has lowered the long-term
debt rating of Nippon Light Metal Co. from A- to BBB.  
Nippon Light Metal's commercial paper was also lowered from
A-1 to A-2.  

The company has been under a restructuring plan, and
earnings are not expected to improve considerably if demand
for aluminum products in domestic and overseas markets
slumps further.


RENOWN INC: First-half pretax loss falls to 4.73 bln yen
--------------------------------------------------------
The Nihon Keizai cites a Dow Jones reports that Renown
Inc., a leading Japanese apparel maker, said Thursday that
its unconsolidated pretax loss for the first half ended
July 31 narrowed to 4.73 billion yen, from the year-earlier
loss of 5.12 billion yen.

In the mid-term restructuring plan announced earlier this
year, Renown said it would withdraw from unprofitable lines
of apparel brand, while pulling out of loss-making sales
activities at large-scale supermarket stores.

Its net loss widened to 13.65 billion yen in the first half
from a loss of 5.17 billion yen a year ago, as it reported
special losses totaling 8.88 billion yen mainly due to
burden related to allowance for voluntary retirement the
company conducted earlier this year.

What upset the company were worse-than-expected business
conditions especially evidenced in poor sales at department
stores, and losses related to its attempt to eliminate
inventories, Renown president Keiji Toyoda said.


SUMITOMO BANK: Suit over $50 million deal
-----------------------------------------
Sumitomo Bank is being sued for more than US$50 million it
allegedly owes to the Bank of Communications.

Following a deal struck between the two on August 19 this
year, it was agreed that the Hong Kong branch of the Bank
of Communications would place a deposit of $50 million with
Sumitomo at its New York branch.

According to the High Court writ, it was agreed the money
would be placed in Sumitomo's account from August 21-28.
Sumitomo agreed to repay the Bank of Communications the
original sum plus interest of $54,383 to its account at the
chase Manhattan Bank in New York on August 28, according to
the writ. However, Sumitomo has failed to pay the total sum
of $50,054,383, the writ says.   


SUMITOMO BANK: To cut back at UK brokerage unit
-----------------------------------------------
Bloomberg reports shares of Sumitomo Bank Ltd. fell as much
as 22 yen to 1,085. Japan's second-largest bank said it
will cut back the business of its brokerage unit in the
U.K. as it moves to consolidate its securities operations
worldwide with those of alliance partner Daiwa Securities
Co.


STANLEY ELECTRIC: Stanley Electric's ratings cut
------------------------------------------------
The Asian Wall Street Journal reported that Japan Rating
and Investment Information Inc. has lowered the long-term
rating of Stanley Electric Company from A to A-. This
rating cut affects the company's 20 billion yen ($148
million) of unsecured convertible bonds due in March 31,
2000.

This rating change reflects the increasing severity in the
automotive industry's operational environment, both
domestically and internationally.


YAHAGI CORPORATION: Declares bankruptcy
---------------------------------------
Kyodo News reports Yahagi Corp., an iron trader and
software maker listed on the Tokyo Stock Exchange's First
Section, said Friday it has been declared bankrupt with
debts of 3.6 billion yen. Shigeru Wakabayashi, president of
the Nagoya-based firm, said the company filed for
bankruptcy with the Nagoya District Court the same day.

Yahagi said it was forced to take the legal action
to dissolve itself due to fund-raising difficulties as it
lost public confidence when it announced on Aug. 19 plans
to pull  out of the steel business. The company reports
debts of 3.6 billion yen.  The August announcement led the
Tokyo, Nagoya and Osaka stock exchanges to place Yahagi
under monitoring.

The company also cited a scandal over the distribution of
copies of Yahagi promissory notes and checks in July and
the recent issuance of promissory notes and checks by
company executives without board approval.  Yahagi
dismissed the executives, including Vice Chairman Yukio
Shimaze, on Sept. 4.

Yahagi is the fifth listed company to fail this year and
the third that is listed on the First Section of the Tokyo
Stock Exchange, according to private credit research agency
Teikoku Databank.  The Tokyo Stock Exchange said it will
delist shares in Yahagi on Oct. 3. (Kyodo News 18-Sep-1998)


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

ANAM SEMICONDUCTOR: In talks with investors
-------------------------------------------
South Korea's Anam Semiconductor Inc said it is in talks
with a number of foreign financial institutions in an
effort to win investment. A senior spokesman at Anam said
they've been talking with several foreign financial
institutions including Solomon Smith Barney and Merrill
Lynch. They said nothing has been finalized, including the
type of investment.


IL DONG PHARMACEUTICAL: Il Dong named as a workout target
---------------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Il Dong Pharmaceutical Company has been
selected for a workout procedure at its creditor's meeting
on September 16, 1998.

A 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".


RAINBOW ELBA TECH: Completes creditor reconciliation
----------------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Rainbow Elba Tech Company has
completed its creditor reconciliation procedure. The
company's address is San 101-16 Kimpo-eup, Kyunggi-do, and
the president is Mr. Yi Che-chan.


RAINBOW VISION: Completes creditor reconciliation
-------------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Rainbow Vision Company has completed
its creditor reconciliation procedure. The company's
address is 84-15 Kangjae-dong, Seoul, and the president is
Mr. Yi Che-chan.


SEOUL CHUNSANG: Completes creditor reconciliation
-------------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Seoul Chunsang Company has completed
its creditor reconciliation procedure. The company's
address is 240-8 Poi-dong, Kangnam-gu, Seoul, and the
president is Mr. Yi Che-sup.


YOUNG-DO CONSTRUCTION: Starts creditor reconciliation
-----------------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Young-Do Construction Company has
started a creditor reconciliation procedure. Creditors have
until October 7 to file their claims. The company's address
is 6-9 Daecho-dong, Eunpyong-gu, Seoul. The company's
presidents are Mr. Park Sun-chi and Mr. Yi Chae-kyun.


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

BANK BUMIPUTRA: Commerce Asset seals Bumiputra tie-up
-----------------------------------------------------
The SCMP reports that financial group Commerce Asset
Holdings has agreed to merge its banking unit with state-
owned Bank Bumiputra Malaysia.

Commerce Asset chairman said this would be effected through
the exchange of shares to conserve cash in the banking
system and the value of the shares would be based on net
tangible assets after mutually agreed adjustment. He said
that the central bank had approved the merger. He said that
if successful, the merged group would be the second largest
banking group in Malaysia with assets exceeding M$80
billion.

It will have significant regional potential and will be a
dominant relationship provider of financial services to
choice customer segments, and competitiveness will be
improved with broad and comprehensive coverage. The Finance
Ministry would hold a controlling stake in the merged
entity.

The share swap agreement is expected to be signed within 12
weeks or earlier, while the entire merger exercise is
expected to take two years to complete.

The earlier proposed strategic alliance with MBf Capital
will still be pursued despite MBf Holdings seeking of court
protection.

Commerce Asset executive director Mr Rozali said that
Commerce Asset did not plan to seek guarantees from the
central bank, as it viewed its planned merger with Bank
Bumiputra as commercially viable. He said the new entity
would not require significant capital for now but did not
rule out the possibility of seeking assistance from
government agencies.

A banking analyst with a local brokerage said the proposed
merger was a pre-emptive move ahead of Bank Bumiputra's
year to March results due today. He said this was a better
option compared with the initial rumored tie-up between
Bank Bumiputra and top bank Malayan Banking. The research
chief at a local brokerage said it is no secret that Bank
Bumiputra is in financial trouble and a merger or takeover
would make sense.

Kyodo News reports Bank Bumiputra chalked up a net loss of
1.41 billion ringgit (US$371 million) for the financial
year ended March 31 against a net profit of 455.6 million
ringgit the year before.

The bank's pretax loss was 1.392 billion ringgit against a
pretax profit of 724.2 million ringgit the previous year.


IMMETEC SDN BHD: Winding-up petition
------------------------------------
Lee Pig Wah on 24/8/98 petitioned for the winding-up of
Immetec Sdn Bhd. The petition is directed to be heard on
1/12/98.


SIME DARBY: Expects to post huge losses
---------------------------------------
Sime Darby Bhd is expected to report tomorrow a net loss of
415 million Malaysian ringgit (S$187.5 million) to RM1.2
billion for the year to June 1998, against a RM835.8
million profit a year earlier.

The wide divergence in forecasts reflects uncertainty about
how the group will book losses at Sime Bank Bhd, analysts
said yesterday.

They said the group is expected to return to overall
profitability after completing the disposal of Sime Bank to
Rashid Hussain Bhd, with most of Sime Darby's other
operations performing reasonably well.

Sime Bank posted an interim net loss of RM1.8 billion, with
Sime Darby's loss at RM676.2 million. If the second-half
performance of the bank is excluded, Sime Darby would still
record a loss of about RM490 million, again largely due to
the performance of the bank in the first half, Sassoon's Mr
Choong said.


SUNGEI WAY HOLDINGS: Move to lower debt
---------------------------------------
Construction company Sungei Way Holdings has agreed to hive
off its quarry and asphalt businesses to a 50-50 joint
venture for 360 million Malaysian ringgit (S$162.6 million)
in a move to cut its debt.

The company said in a statement yesterday that a deal it
struck with Australia's Pioneer International Holdings Pty
Ltd would help reduce its borrowings and strengthen its
financial position.

It told analysts at a briefing that its debt level would be
reduced to RM680 million or a gearing ratio of 1.4 times by
December this year. As at end-June, its debt stood at some
RM1 billion or a gearing of 2.2.

Sungei Way will subscribe for 100,000 Sunway-Pioneer shares
for RM100,000 while Pioneer will subscribe for a similar
block at RM180 million. Pioneer will also lend the joint
venture an amount in US dollars equivalent to RM180
million.

As part of the deal, Sungei Way will give Pioneer an option
to buy its 100,000 Sunway-Pioneer shares at cost, or
RM100,000. At the same time, Sunway-Pioneer will give
Sungei Way an option to subscribe for 200,000 new shares at
a price equivalent to the compounded value of the US dollar
loan from Pioneer.


TACONA SDN BHD: Winding-up petition
-----------------------------------
Sinefinance Bhd on 22/7/98 petitioned for the winding-up of
Tacona Sdn Bhd. The petition is directed to be heard on
16/10/98.


TAN CHONG MOTOR HOLDINGS BHD: Results announcement
--------------------------------------------------
Tan Chong Motor Holdings Bhd (listed on the KLSE) suffered
a loss of RM2.661mil for the first half of its financial
year versus a profit of RM127.171mil for the corresponding
period last year. Meanwhile, pre-tax profit was at
RM3.924mil versus RM189.108mil.


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

NATIONAL POWER CORP: Told to raise rates for profitability
----------------------------------------------------------
BusinessWorld reports that projecting a "bankruptcy
scenario," US-based Merill Lynch & Co. has advised the
National Power Corp. (Napocor) to increase basic rates "to
attain" a certain degree of profitability and enhance its
attractiveness to interested investors.

In a report entitled "National Power Corp.: Too Big To
Fail", the investment house warned Napocor's profitability
is under pressure and is expected to remain that way as the
domestic economy continue to slowdown and the currency
remains volatile.

Merill Lynch cited Napocor's latest balance sheet
disclosure which mirrored the unhealthy condition of the
state-run firm. For instance, Napocor's debt-to-equity
ratio has increased substantially from 1.84 in 1993 to 4.51
in 1997.

The company's long-term borrowings have risen 300% as a
result of the continuous Philippine peso (PhP) devaluation
given that Napocor's standing debt is mostly dollar-
denominated. Napocor's total liabilities stand at PhP507
billion as compared to only PhP173 billion five years ago.
Merill Lynch noted a "bankruptcy" scenario for the state-
run company but did not go into specifics as to the time
that plot would occur.


PHILIPPINE AIRLINES: PAL plans to close
---------------------------------------
According to a front page story in the Asian Wall Street
Journal, the owner of Philippine Airlines (PAL) has decided
to close the airline on September 28. Earlier this week,
the PAL Employees Association decided to reject an offer
from PAL's chairman which would have given workers three
board seats and company stock in exchange for a 10-year
suspension of their collective-bargain agreement.  
Following this rejection, the airline announced that
without fresh capital, it could not operate viably.  

A PAL official also stated that the airline's liabilities
now almost equal its assets. Shutting down was described as
the only way to preserve the company's assets to ensure
orderly liquidation and disposition of creditors and other
claimants.  

Pending the approval of a rehabilitation plan from the
Philippine Securities and Exchange Commission, the airline
had secured debt payment relief from creditors, both
foreign and local, that included both banks and aircraft
lessors. Its biggest creditor is the Philippine National
Bank, which holds almost 2.5 percent of the airline. The
bank has debts (both long-term and short-term) of almost
$80.2 million. Local Philippine banks reportedly hold
around 11 percent of PAL's total debt, with the rest
being borne by foreign institutions and aircraft lessors.

PAL's pilots staged a 22-day strike in June, and its ground
crew walked off the job for a week, which worsened the
problems the airline was seeing due to the Asian currency
crisis. The strike forced PAL to drastically reduce its
operations, including the suspension of both domestic and
international flights. PAL had announced that due to its
labor problems, it is unable to make payments on about $2.1
billion of debt.

Meanwhile, Reuters reports President Joseph Estrada  
said on Friday he would try his best to save Philippine
Airlines (PAL) even as a "decent burial" was being prepared
for Asia's oldest national airline.

A presidential spokesman said: "President Estrada remains
hopeful that the parties can be persuaded in the national
interest to reach an agreement."


UNIWIDE HOLDINGS: Confirms restructuring talks
----------------------------------------------
BusinessWorld reports warehouse club and department store
operator Uniwide Holdings, Inc. (UHI) is currently
discussing with its creditor-banks involving the possible
extension of repayment terms of its 249.9-million
Philippine peso (PhP) short-term borrowings.

UHI investor relations officer Jean I. Javier told
BusinessWorld yesterday the holding firm is asking for the
conversion of its short-term debts into long-term ones
since this will give UHI ample time to generate cash that
will be used to pay off debts.

Ms. Javier said the discussion with local banks and a
financial institution started early this year. She,
however, refused to disclose further details on the planned
debt restructuring. Ms. Javier likewise confirmed earlier
reports that the company has been resorting to cost-cutting
measures including a reduction in work force since last
year. In a quarterly report to the stock exchange, the
company said sales were largely affected by the prevailing
regional currency crisis while collection of receivables
have likewise slowed down.

UHI was prompted to temporarily defer the development of
all its real estate projects in response to the crisis.


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

HEWLETT-PACKARD: Restructuring plans include job cuts
-----------------------------------------------------
Hewlett-Packard chairman Lewis Platt said yesterday that
the company would cut some jobs as part of its
restructuring. HP said this week it expected to incur
US$150 million (S$257.5 million) in special charges in its
fourth fiscal quarter that were related to cost and expense
cutting.

In July, HP imposed a three month, 5 per cent pay cut on
2,400 managers and said it would shut its offices for the
week over Christmas to bring down costs.


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.  Additional e-mail
subscriptions for members of the same firm for the
term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact
Christopher Beard at 301/951-6400.

            * * * End of Transmission * * *