TCRAP_Public/980923.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      

      Wednesday, September 23, 1998, Vol. 1, No. 149

                    Headlines


* C H I N A   &   H O N G   K O N G *

AWT HOLDINGS: $170m in creditor claims
CHI CHEUNG INVESTMENT: Chi Cheung has investors on hold
FORLUXE SECURITIES: Forluxe clients weigh options
FU HUI HOLDINGS: Results announcement
IDEAL PACIFIC: Sues former executives over lost $443m

KONG TAI INTERNATIONAL: Results announcement
PEREGRINE INVESTMENTS: Shareholders sue Peregrine directors
RAYMOND INDUSTRIAL: Results announcement
TOMSON PACIFIC: Lai defends $38m commission in WTCG deal


* I N D O N E S I A *

HM SAMPOERNA: Results announcement
SEMEN GRESIK: Cemex renews bid for stake


* J A P A N *

KAJIMA CORPORATION: Moody's cuts long-term debt rating
LONG TERM CREDIT: Rescue deal falls apart
LONG TERM CREDIT: Sells stake in JV to UBS
MITSUKOSHI: Issues profit warnings
NISSHO IWAI: Securities losses have investors worried

OBAYASHI CORPORATION: Moody's cuts long-term debt rating
SHIMIZU CORPORATION: Moody's cuts long-term debt rating
TAISEI CORPORATION: Moody's cuts long-term debt rating
YAHAGI CORPORATION: Yahagi files for bankruptcy


* K O R E A *

ANAM SEMICONDUCTOR: $600 asset sale
CHINSUNG INDUSTRY: Chinsung industry will liquidate
CHUNGJOO ELECTRONICS: Firm is bankrupt
HANHWA FINANCING: Hanhwa Financing is insolvent
KIA MOTORS: Three car makers make fresh bids to buy Kia

SAMICK HOUSING: Applies for court receivership
SSANGYONG BROKERAGE: Hambrecht buys Ssangyong brokerage
SSANGYONG GROUP: To sell oil unit


* M A L A Y S I A *

ACF HOLDINGS BHD: Results announcement
BANK BUMIPUTRA MALAYSIA: Bank Bumiputra loses $2.8b
CHAN TAK HAU PHYSICAL TREATMENT CENTRE: Winding-up petition
DAYOCHI (M) SDN BHD: Winding-up petition
EURO ELEGANT SDN BHD: Winding-up petition

FIRE 'O' (M) SDN BHD: Voluntary winding-up
KENG LOONG ENGINEERING & TRADING: Winding-up petition
KENN KENN AUTO (S.P.) SDN BHD: Winding-up petition
MIRAGOLD ENTERPRISE SDN BHD: Voluntary winding-up
NASWIRA SDN BHD: Winding-up petition

PACIFIC ACCORD SDN BHD: Winding-up petition
PEMBINAAN DAPAT JAYA SDN BHD: Winding-up petition
PROMET BHD: Additional loan defaults
SIME DARBY BHD: Results announcement
SIN HIAP BEE HARDWARE SDN BHD: Winding-up petition

T-ZAK SDN BHD: Winding-up petition
YCS POWER (M) SDN BHD: Winding-up petition
YICHENG PROPERTIES SDN BHD: Voluntary winding-up


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

PHILIPPINE AIRLINES: Estrada sweetens PAL deal for staff


* S I N G A P O R E *

ALLIANCE TECHNOLOGY: Results announcement
HONG FOK CORPORATION: Results announcement
HWA HONG: Results announcement


* T H A I L A N D *

HANA MICROELECTRONICS: Securities granted by the SET
KIAN GWAN: Debt burden forces it to sell stake
KRUNG THAI BANK: To increase registered capital
KRUNGTHAI THANAKIT: Merger with Union Bank has hit a snag
NATURAL PARK: Directors approve capital-increase plan

NAVA FINANCE AND SECURITIES: Results announcement
PAGAENG INDUSTRY: Sale of Western Metals stake in jeopardy
PRANDA JEWELLERY: Results announcement
RENOWN LEATHERWEAR: Negotiates with suppliers
SIAM COMMERCIAL BANK: Plans to increase capital

SLC LEASING: Sues executives of former parent firm
THAI PETROCHEMICAL: Among first to restructure debt
THAI RUNG UNION CAR: Unbuckles 25% stake in Autolift
UNION ASIA FINANCE: SEC gathers evidence against execs


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

AWT HOLDINGS: $170m in creditor claims
--------------------------------------
According to the SCMP, shares in freight forwarder AWT
Holdings rose 9 percent to 2.4 cents yesterday despite
facing claims from its creditors for $170million.

Uncertainty enveloped the firm yesterday when it revealed
its overall financial position would depend on the outcome
of negotiations with its creditors.

The firm said its property arm was suffering cash-flow
problems while its core business - freight  forwarding -
still had working capital. It said it had utilised a
combined $125 million banking and finance facility. To
alleviate cash-flow problems, the firm said it planned to
sell certain properties subject to creditors' approval.

The company also said that one of its secured bank
creditors has exercised its power last month to sell 36 car
parks. It is also facing a $90 million contingent liability
arising from its property arm's alleged breach of a  
property contract.


CHI CHEUNG INVESTMENT: Chi Cheung has investors on hold
-------------------------------------------------------
According to the Hong Kong Standard, real estate developer
Chi Cheung Investment yesterday asked that its shares be
suspended from trading pending an announcement. That came
after Chi Cheung shares fell 88 percent to 83 cents on the
day. Earlier the company stated that it would report a loss
for the first half of 1998 but knew of no other reason for
the decline. In July, Chi Cheung cancelled plans for new
shares to pay for part of a Beijing property that it agreed
to buy in May but said it would make the purchase anyway.


FORLUXE SECURITIES: Forluxe clients weigh options
-------------------------------------------------
According to the SCMP, liquidators of collapsed Forluxe
Securities are writing to all 600 creditors to give options
for handling the court case they fear could span nine
months.

The court dismissed the initial proposal where proceeds
from the sale of shares would be divided between creditors
regardless of their status, amid fears of prejudice to
clients with a proprietary interest.

The options left would be whether to go ahead in court
alone as Forluxe with their claims, amalgamate with CA
Pacific or wait until CA Pacific has a ruling and then
proceed.

Nelson Wheeler Corporate Reconstruction and Insolvency
managing director Nick Hill said that this is an emotional
issue and it would be better to ask creditors of their
comments.

More than 100 complaints were received initially from
investors claiming they were owed $16.7 million. A
shortfall of almost $40 million was identified in June. Mr
Hill said the latest figure of how much has been realised
will be worked out this week. Costs to date are also being
calculated.


FU HUI HOLDINGS: Results announcement
-------------------------------------
Hit by the Asian crisis, Fu Hui Holdings had a $64.8
million net loss for the six months to June 30 compared to
a $1.1 million net profit for the corresponding period last
year.

Chairman So kwok-hoo said the interim loss was caused by
reduced sales performance on gold, jade and jewellery as
well as the slide of property investments and short-term
listed investments, reflected as exceptional loss.  

Turnover for local sale and marketing of gold, jade and
jewellery fell 55.2% to $125 million for the six-month
period. But turnover on gold, jade and jewellery on the
mainland grew from $589,000 to $14.5 million.


IDEAL PACIFIC: Sues former executives over lost $443m
-----------------------------------------------------
According to the SCMP, Ideal Pacific is to sue former
directors for $443 million in losses arising from an
alleged fraud.

Former chairman Alfred Ip Man-man and three former
executive directors, Helen Fu Wai-hung, Simon Tam Kam-wing
and Au Wing-cheung are alleged to have conspired to falsify
accountig records and fabricate sales transactions to
defraud the company of about $300 million over several
years to March 31.

Police are investigating the allegations and Company
secretary Mr Lam, who is also a director of Central
Central, said after the company's annual meeting yesterday
that the independent committee set up by the company will
finish an investigation by the end of this month. He said
Ideal Pacific had implemented tighter internal control.

Auditor Cooper & Lybrand, which has handled Ideal Pacific's
auditing since its listing in 1994, was reappointed
yesterday.


KONG TAI INTERNATIONAL: Results announcement
--------------------------------------------
Interim net loss at property investment company Kong Tai
International has widened to $115.5 million for the next
six months ended June 30 compared to a loss of only $12.3
million for last year. The result was despite an increase
of 694 % in its turnover to $77.2 million.

The group said it incurred a net exceptional loss of $76.8
million after including exceptional gains during the
period. The exceptional loss included a $78.3 million
provision for diminution in value of investment properties
under development, and a $14.7 million loss on disposal of
investment properties. The interim loss was mainly due to
the charges for the revaluation of certain properties to
current market value. Chairman David Wong said that during
the first six months of 1998 it had become more difficult
for Kong Tai to complete transactions.  


PEREGRINE INVESTMENTS: Shareholders sue Peregrine directors
-----------------------------------------------------------
The Hong Kong Standard reports that disappointed
shareholders continue to hound the directors of collapsed
Peregrine Investments Holdings.

Cheeroll Ltd, a shareholder of Peregrine, has filed a suit
against four former officials of Peregrine - founder and
former chairman Philip Leigh Tose and his three associates
Francis Leung Pak-to, Peter Wong Wing-cheong, and Allan
Kenneth Mercer - to recover losses they incurred because of
what was alleged as misleading claims made by the  
executives about Peregrine's direction. They have 14 days
to answer the summons.

Cheeroll claimed three statements issued by the directors
last year were materially false and misleading and caused
the plaintiff heavy losses. Cheeroll claimed the four
either misrepresented or were in breach of duty when they
issued statements to shareholders concerning Peregrine's
financial conditions and business prospects. Cheeroll said
these statements were in particular contained in an
announcement dated Oct. 26, 1997, issued by the defendants
and published in the press on Oct. 27, 1997, and in
financial results issued on Dec 11 and a letter circular
dated Dec 17. On Oct. 27, Peregrine took out a full-page
announcement in some newspapers to debunk talks that it was
about to collapse.

In the statement, Mr Tose acknowledged that profits in
Peregrine's equity trading and derivatives operation had
been seriously hit by the Hong Kong market's volatility.
However Peregrine claimed that despite that revenues had
held up better than expected. It also claimed that its
fixed-income group had an unaudited net profit of about
$147.25 million for the period between Jan 1 and Oct 24.

The fixed-income arm was ultimately the main cause of
Peregrine's collapse early this year, following the failure
of an Indonesian taxi firm to pay its debts to Peregrine.
The summons came after a decision last week by a judge to
keep control over the liquidation of Peregrine's fixed-
income unit.


RAYMOND INDUSTRIAL: Results announcement
----------------------------------------
Raymond Industrial, a home electrical appliance
manufacturer in Hong Kong, has reported a $9.88 million
attributable loss for the six months to June, a turnaround
from the $7.56 million profit it earned in the same period
last year. Interim dividend has been cut from three cents a
share last year to two cents. Chairman Wilson Wong said the
34.6% fall in turnover from last year's $184.7 million to
$120.6 million was the main reason for the poor
performance.  


TOMSON PACIFIC: Lai defends $38m commission in WTCG deal
--------------------------------------------------------
According to the SCMP, court case continues regarding fees
of $38.5 million paid to fraud suspect Arthur Lai Cheuk-
kwan for his role in the World Trade Centre Group (WTCG)
takeover.

Lai denies that the two commissions - HK $26.4 million and
A$2 million were bribes for his part in the introduction
and placement of another 31.35 percent of the shares to the
other parties. The fees were paid by Tomson Pacific and
Bond Corp International, now known as WTCG.

Lai said that before the deal, the highest commission he
had been paid was HK$7 million to HK$8 million. He said he
did not mention the Tomson Pacific fees to his colleagues
at Chin Tung Holdings, where he was chairman, because it
was not his habit to do so. He told the court he was fully
aware that unless the 31.5 percent of shares were all
placed with independent parties, there was a risk that
Tomson Pacific would have to fund a general offer, which
would cost them HK$1 billion. He said it would be
commercially sound for this not to have to be the case and
that there was a huge financial advantage to Tomson Pacific
in the deal going through without the SFC requirement of a
general offer.


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

HM SAMPOERNA: Results announcement
----------------------------------
Indonesia's third-largest clove cigarette producer, HM
Sampoerna, reported a first-half net loss of 1.822 trillion
rupiah, compared with the net profit of 185.68 billion
rupiah a year earlier as the company continued to recognize
foreign-exchange losses.

The company's foreign-exchange loss and swap costs totaled
1.99 trillion rupiah based on a rupiah exchange rate of
14,900 rupiah to the US dollar as of June 30, said Jonathan
Zax, the company's corporate secretary. That compares with
an exchange rate of 4,650 rupiah to the dollar at the end
of last year. Sales, however, rose 43% to two trillion
rupiah. Mr Zax said that consumer shifts into hand-rolled
cigarettes, which have higher margins compared with
machine-rolled cigarettes, and the rise in prices were
sufficient to offset increased imported material costs.


SEMEN GRESIK: Cemex renews bid for stake
----------------------------------------
Mexican cement company Cemex has renewed it bid for a stake
in Semen Gresik, a partially privatised Indonesian cement
company. Cemex bid $114.6m, for a 14% stake in the company.
The government had earlier rejected a bid to take a 35%
stake in Semen Gresik. Cemex still faces possible
conterbids next week from Holderbank, Heidelberger and
Lafarge.


=========
J A P A N  
=========

KAJIMA CORPORATION: Moody's cuts long-term debt rating
------------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has downgraded the senior unsecured long-
term debt ratings of four Japanese general construction
companies. The downgrades reflect concerns over persistent
pressure on earnings and the companies' highly leveraged
positions. These companies cash flows may also reduce as
there is a weak construction demand from the private
sector. Kajima Corporation was downgraded from B-double-A1
to B-double-A3, due to falling profit margins, high debt,
and substantial asset write-off.


LONG TERM CREDIT: Rescue deal falls apart
-----------------------------------------
The Associated Press a compromise plan to resuscitate
Japan's troubled banking system appeared to be unraveling
today, as ruling and opposition party leaders publicly
fought over just what was agreed upon.

Prime Minister Keizo Obuchi struck the banking bill deal
with opposition parties late last week as he prepared to
leave for his first summit with U.S. President Clinton.

At issue is the fate of the ailing Long-Term Credit Bank of
Japan Ltd. and other lenders staggering under the weight of
soured loans, many of which were extended before Japan's
economy entered a prolonged slump nearly 10 years ago.

En route to the United States, Obuchi signaled today that
LTCB, one of the country's biggest banks, would not be
allowed to founder. That appeared to directly contradict
opposition claims the bank would be declared insolvent
and nationalized.

"If the Long-Term Credit Bank were to fail, it would cause
a major impact on the global economy," Obuchi told
reporters.


LONG TERM CREDIT: Sells stake in JV to UBS
------------------------------------------
The Wall Street Journal reports Long Term Credit Bank
agreed with UBS AG of Switzerland to restructure the
ownership of their joint ventures in Japan. The banks said
LTCB will sell its 50% stake in the asset-management
business UBS Brinson to UBS. LTCB Warburg Securities Ltd.,
their investment-banking joint venture, will be
resturctured with a capital injectionso that UBS and third-
party designees will control 66.67% of the capital, while
LTCB's stake will fall to 33.33% from 40%.


MITSUKOSHI: Issues profit warnings
----------------------------------
The Financial Times reports Department store operator
Mitsukoshi has warned it has cut its earlier earnings
forecasts for the first half of this year in half, from
Y1bn to Y450mn. This compares with losses of Y33.8bn in the
same period the previous year.


NISSHO IWAI: Securities losses have investors worried
-----------------------------------------------------
The Financial Times reports shares of Nissho Iwai suffered
as investors remian concerned about unrealised losses on
securities holdings and its exposure in Asia.

The Times says Nissho Iwai's high level of securities
investments relative to its equities has left it vulnerable
to speculation.

Analysts believe Nissho Iwai's unrealised losses on its
equity holdings could be Y100bn, compared with its declared
loss on equities of Y25bn at the end of March.


OBAYASHI CORPORATION: Moody's cuts long-term debt rating
--------------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has downgraded the senior unsecured long-
term debt ratings of four Japanese general construction
companies. The downgrades reflect concerns over persistent
pressure on earnings and the companies' highly leveraged
positions. These companies cash flows may also reduce as
there is a weak construction demand from the private
sector. Obayashi Corporation was downgraded from B-double-
A1 to B-double-A2, due to expectation that it will not
reduce debt in short term.


SHIMIZU CORPORATION: Moody's cuts long-term debt rating
-------------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has downgraded the senior unsecured long-
term debt ratings of four Japanese general construction
companies. The downgrades reflect concerns over persistent
pressure on earnings and the companies' highly leveraged
positions. These companies cash flows may also reduce as
there is a weak construction demand from the private
sector. Shimizu Corporation was downgraded from A3 to B-
double-A3, due to impaired capital position following major
asset write-offs.


TAISEI CORPORATION: Moody's cuts long-term debt rating
------------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has downgraded the senior unsecured long-
term debt ratings of four Japanese general construction
companies. The downgrades reflect concerns over persistent
pressure on earnings and the companies' highly leveraged
positions. These companies cash flows may also reduce as
there is a weak construction demand from the private
sector. Taisei Corporation was downgraded from B-double-A2
to B-single-A1, due to concerns about company's large debt,
asset write-offs, and erosion of assets and equity.


YAHAGI CORPORATION: Yahagi files for bankruptcy
-----------------------------------------------
The Asian Wall Street Journal reported the Yahagi
Corporation has filed for bankruptcy with the Nagoya
District Court. Yahagi is an iron trader and software maker
with debts currently estimated at 3.57 billion yen ($27
million).  

A statement for Yahagi said that its earnings have been
hurt as orders from Kyoei Steel fell once Kyoei reduced its
ownership stake in Yahagi. It was also reported that the
direct cause of the bankruptcy was due to difficulties in
fund raising brought about by concerns of the company's
creditworthiness after Yahagi's former senior management
improperly issued promissory notes.


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

ANAM SEMICONDUCTOR: $600 asset sale
-----------------------------------
The Financial Times reports chipmaker Anam Semiconductor is
close to signing a deal with foreign investors to sell part
of its assets for $600m. The deal was arranged by Salomon
Smith Barney Holdings. The sale, which is likely to be
final by the end of the month, is designed to attract
$2.3bn-$2.5bn in total foreign investments.


CHINSUNG INDUSTRY: Chinsung industry will liquidate
---------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Chinsung Industry Company has decided to
liquidate.


CHUNGJOO ELECTRONICS: Firm is bankrupt
--------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Chungjoo Electronics Company has gone
bankrupt.


HANHWA FINANCING: Hanhwa Financing is insolvent
-----------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Hanhwa Financing Company is no
insolvent. Creditors have until October 16 to file their
claims. The company's address is 111-5 Sogong-dong, Chung-
gu, Seoul and the representative is Mr. Yi Yim-sung.


KIA MOTORS: Three car makers make fresh bids to buy Kia
-------------------------------------------------------
According to the SCMP, Samsung Motors, Daewoo Motor and the
country's largest car-maker, Hyundai Motor, submitted
tenders for Kia Motors and Asia Motors before yesterday's
deadline for bids, a Kia spokesman said.

Hyundai said it had submitted an independent bid for Kia
and Asia Motors instead of bidding together with a range of
Hyundai Group affiliates as it had done in the first round.

Analysts were sceptical about the auction's chances of
success after Ford Motor pulled out of the race, saying the
debts of Kia and Asia Motors Corp made them difficult to
rehabilitate. They said that the collapse of the first
round, and Ford's withdrawal following woefully inadequate
debt write-offs, was a poor sign for the future of the car
sector.

Samsung, which only entered the car industry earlier this
year, appears intent on winning control of Kia to keep its
car business afloat.


SAMICK HOUSING: Applies for court receivership
----------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Samick Housing Company applied for court
receivership on September 17, 1998. A statement from the
Korean Stock Exchange criticized the late release of this
information, since it usually supervises the trading of
the stocks of companies applying for court protection.


SSANGYONG BROKERAGE: Hambrecht buys Ssangyong brokerage
-------------------------------------------------------
The SCMP reports that Hambrecht and Quist Group, a United
States investment bank, plans to buy a controlling stake in
Ssangyong Investment & Securities, the first foreign
takeover of a South Korean brokerage.

H&Q's Asian venture capital unit will buy 28.11 percent of
the company from Ssangyong Group for a nominal amount of
US$1 and a future consideration to be determined by the
performance of Ssangyong Securities stock.

The San Francisco-based group will also inject 150 billion
won into the brokerage by November to bolster its finances.
H&Q will inject capital by purchasing new shares and
convertible bonds.

The investment is the latest foray into struggling Asian
brokerages by Merrill Lynch and other foreign investors.


SSANGYONG GROUP: To sell oil unit
---------------------------------
According to a report in the SCMP, Ssangyong Group has
announced it will sell its joint venture oil refinery, one
of the nation's most profitable companies which earned
1,462 won per share in the first six months of the year, an
18.7 per cent advance on a year earlier despite fuel demand
fall.

The decision underscores just how dire Ssangyong's finances
have become, the legacy of a failed multibillion dollar
investment in vehicles made by the eldest of three brothers
who run a group of myriad businesses.

Years of reckless expansion, fuelled by cheap loans, left
such firms as Hyundai, Samsung and Daewoo mires in debt
they could no longer afford.

Confronted with a shrinking economy and higher interest
rates, these groups are now preparing to swap entire
companies at the behest of the government. For Ssangyong,
it is a question of survival.

Ssangyong Cement, its flagship and Korea's biggest cement
producer, has about three trillion won of debt, about a
third of which stems from loan guarantees made to Ssangyong
Motors, which the group sold to rival Daewoo earlier this
year. The cement company's interest expenses doubled in the
first six months of the year, because of the extra load, to
108 billion won, almost double its operating profit. The
company has already cut wages by fifth and staffing levels
by about 46 per cent to weather the storm. It has a 28 per
cent stake in Ssangyong Oil Refining.

Ssangyong Oil Refinery's joint venture partner, Saudi
Arabian Oil (Aramco), the world's biggest oil company, is a
possible buyer.  

According to Yonhap News Agency, Aramco may pay US$500
million to take a controlling stake, four times the present
market value of Ssangyong Cement's stake. For Aramco, which
typically makes investments to secure customers for its
crude oil, increasing the stake could involve moving into
the marketing of oil products in Korea - a whole new
business.


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

ACF HOLDINGS BHD: Results announcement
--------------------------------------
ACF Holdings Bhd (listed on the KLSE) reported a pre-tax
loss of RM45.007mil for the half year ended 30/6/98,
compared to a previous pre-tax profit of RM30.118mil.


BANK BUMIPUTRA MALAYSIA: Bank Bumiputra loses $2.8b
---------------------------------------------------
According to the SCMP, Bank Bumiputra Malaysia yesterday
reported a M$1.41 billion net loss in the year to March 31
and revealed it had been recapitalised by the government.

The bank recorded a pretax loss of $1.39 billion, reversing
a profit of $724.26 million the previous year. Operating
profit rose about 9 percent to $1.08 billion.

The bank said the government's investment arm Khazanah
Nasional had pumped $1.1 billion in to raise its risk-
weighted capital-adequacy ratio to 9.7 per cent.

The recapitalisation, comprising $400 million in ordinary
share capital and $700 million irredeemable cumulative
convertible preference shares, was completed by Sept 2.

Bank Bumiputra chief executive Abdul Aziz Othman was
bullish on the bank's prospects for government actions and
said whether or not the bank would make a recapitalisation
would depend on the ability of borrowers to repay their
financial obligation.

A finance analyst with a local brokerage said the loss
levels at Bank Bumiputra were somewhat lower than market
expectations.

Bank Bumiputra's loan loss provisions swelled to $2.47
billion, up from $274.87 million previously. The bank's net
non-performing loans surged to 15.7 per cent at the end of
March, from 6.6 percent earlier. Total loan exposure at the
bank was at $28.3 billion with group levels at $36.2
billion, of which $7 billion at the bank and $7.4 billion
at group have been classified as bad debts. Mr Abdul Aziz
said the bank was pursuing the sale of 65 per cent of its
non-performing loans to government agency Pengurusan
Danaharta Nasional. He said negotiations with several
foreign banks to sell the bank's foreign currency loans,
persently $750 million, were in their final stages.

The Hong Kong Standard reported on the same incident,
describing it as one of the biggest losses in the country's
banking history as it set aside money for ballooning bad
loans.

According to the report, the bank said it swung to a net
loss of 1.41 billion ringgit for the year ended March 30,
from a profit of 455.6 million ringgit in the year-earlier
period. The bank set aside 2.47 billion ringgit for bad
loans compared with 274.8 million ringgit a year ago.


CHAN TAK HAU PHYSICAL TREATMENT CENTRE: Winding-up petition
-----------------------------------------------------------
The members of Chan Tak Hau Physical Treatment Centre Sdn
Bhd on 15/9/98 resolved to wind-up the company voluntarily.
Creditors are requested to submit their claims before
21/10/98.


DAYOCHI (M) SDN BHD: Winding-up petition
----------------------------------------
Yat Seng Construction Sdn Bhd on 24/7/98 petitioned for the
winding-up of Dayochi (M) Sdn Bhd. The petition is directed
to be heard on 27/11/98.


EURO ELEGANT SDN BHD: Winding-up petition
-----------------------------------------
Lee Hin Furniture Manufacturing Sdn Bhd on 27/8/98
petitioned for the winding-up of Euro Elegant Sdn Bhd.
The petition is directed to be heard on 15/10/98.


FIRE 'O' (M) SDN BHD: Voluntary winding-up
------------------------------------------
The members of Fire 'O' (M) Sdn Bhd on 19/9/98 resolved to
wind-up the company voluntarily. Creditors of the company
are requested to submit their claims before 30/10/98.


KENG LOONG ENGINEERING & TRADING: Winding-up petition
-----------------------------------------------------
Bank of Tokyo Mitsubishi (Malaysia) Bhd on 24/6/98
petitioned for the winding-up of Keng Loong Engineering &
Trading Sdn Bhd. The petition is directed to be heard on
6/10/98.


KENN KENN AUTO (S.P.) SDN BHD: Winding-up petition
--------------------------------------------------
Sony (Malaysia) Sdn Bhd on 11/8/98 petitioned for the
winding-up of Kenn Kenn Auto (S.P.) Sdn Bhd. The petition
is directed to be heard on 15/10/98.


MIRAGOLD ENTERPRISE SDN BHD: Voluntary winding-up
-------------------------------------------------
The members of Miragold Enterprise Sdn Bhd on 18/9/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 20/10/98.


NASWIRA SDN BHD: Winding-up petition
------------------------------------
Felda Engineering Service Sdn Bhd on 13/8/98 petitioned for
the winding-up of Naswira Sdn Bhd. The petition is directed
to be heard on 13/11/98.


PACIFIC ACCORD SDN BHD: Winding-up petition
-------------------------------------------
Bank of Commerce (M) Bhd on 15/6/98 petitioned for the
winding-up of Pacific Accord Sdn Bhd. The petition is
directed to be heard on 30/10/98.


PEMBINAAN DAPAT JAYA SDN BHD: Winding-up petition
-------------------------------------------------
Fadara Ferrocrete Sdn Bhd on 2/9/98 peititoned for the
winding-up of Pembinaan Dapat Jaya Sdn Bhd. The petition is
directed to be heard on 27/11/98.


PROMET BHD: Additional loan defaults
------------------------------------
Promet Bhd (listed on the KLSE) said it has additional
defaults on both principal and interest payments for
facilities granted by the Export-Import Bank of Malaysia
and Omega Securities Sdn Bhd.

Promet director said Promet units which defaulted were
Orion-Promet (VBT) Ltd, Promet International Ltd, Mesra
Properties Sdn Bhd.


SIME DARBY BHD: Results announcement
------------------------------------
Sime Darby Bhd. continues to suffer from heavy losses at
its banking unit, with the group posting a net loss of
540.9 million ringgit for the year ended June 30. The loss
compares with 815.4 million ringgit net profit posted the
previous year. Turnover slipped to 12.08 billion ringgit
from 13.24 billion ringgit, and the loss per share was 23.2
sen compared with earnings per share of 35.1 sen the
previous year.

In a statement issued over the weekend, Sime Darby was
hopeful that it would return to the black with hefty
profits of 800 million ringgit to 900 million ringgit for
the current financial year.


SIN HIAP BEE HARDWARE SDN BHD: Winding-up petition
--------------------------------------------------
Ann Yak Siong Hardware Sdn Bhd on 4/8/98 petitioned for the
winding-up of Sin Hiap Bee Hardware Sdn Bhd. The petition
is directed to be heard on 27/11/98.


T-ZAK SDN BHD: Winding-up petition
----------------------------------
BSN Commercial Bank (Malaysia) Bhd on 4/8/98 petitioned for
the winding-up of T-Zak Sdn Bhd. The petition is directed
to be heard on 20/11/98.


YCS POWER (M) SDN BHD: Winding-up petition
------------------------------------------
UBN Tower Sdn Bhd on 24/8/98 petitioned for the winding-up
of YCS Power (M) Sdn Bhd. The petition is directed to be
heard on 10/2/99.


YICHENG PROPERTIES SDN BHD: Voluntary winding-up
------------------------------------------------
The members of Yicheng Properties Sdn Bhd on 18/9/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
20/10/98.


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

PHILIPPINE AIRLINES: Estrada sweetens PAL deal for staff
--------------------------------------------------------
According to the SCMP, Philippine Airlines unions began
voting yesterday on a last ditch deal to save PAL. Earlier
in the day, president Joseph Estrada offered one government
board seat to employees and called on the unions and
management to end their dispute.

Presidential spokesman said the labor department would
oversee a two-day referendum among PAL employees, starting
yesterday afternoon, to decide whether to accept a
management offer of an ownership-sharing scheme. The result
of the referendum is non binding, but the government saw a
chance to persuade the Palea (PAL Employees Association) to
reconsider its decision to reject the offer of the PAL
management, if the vote of the union members is
overwhelming.

The government holds a 33 percent stake in PAL.

Palea yesterday called on the government to extend whatever
assistance it can to help and save PAL including the
immediate takeover of its operations until a lasting
solution to various problems confronting PAL is achieved.
Mr Estrada responded that this was not possible. He said
that the government lacked the funds and also congressional
approval was needed.

Hundred of passengers lined up yesterday outside PAL's
offices in the financial district of Makati to seek refund.
The government said it was coming up with contigency plans
to deal with the closure.

According to the Hong Kong Standard, PAL yesterday made a
surprise move seeking a further 60-day moratorium on
servicing US$2.1 billion in debts to foreign and local
creditors. Some banking analysts believe the move is aimed
at keeping creditors at bay a while longer for an orderly
liquidation of the company rather than at preventing the
airline from closing.

Analysts said yesterday the scheduled collapse of debt-
ridden Philippine Airlines is not expected to pose a
serious risk to the country's banking system, but the
demise would clearly add to the bad-loan difficulties of
local banks and have far-reaching economic ramifications.

PAL has failed to service its debt since June, when it
sought a moratorium from the Securities and Exchange
Commission pending the submission of a rehabilitation plan
that was due yesterday.

Of the airline's total liabilities, domestic banks are owed
US$233 million in dollar-denominated loans, along with a
further 1.2 billion pesos in peso loans. This represents a
relatively small 0.7 percent of total loans in the
Philippine banking system.

A committee of local bank creditors led by Philippine
National Bank, the biggest creditor with a fully secured
exposure of US$80.2 million, has so far made no comment on
how it intends to recover its debts. The bulk of the
airline's loans are owed to foreign banks and aircraft
lessors.

About US$1.2 billion is owed to a consortium of European
financial institutions in loans to finance an ill-timed
aircraft modernisation program. Another US$400 million is
owed to US financial institutions, led by the US Import-
Export Bank. Most of the airline's US$2.1 billion in debt
is secured against aircraft and engines and, to a far
lesser extent, property, ticket sales and government
guarantees. But documents filed by the airline to the SEC
show that at the end of April there were numerous loans
that were unsecured. PAL also used an exchange rate of 38
pesos to a US dollar, which has strengthened by about 13
percent since then.


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

ALLIANCE TECHNOLOGY: Results announcement
-----------------------------------------
Singapore BusinessTimes reports Alliance Technology and
Development yesterday said its net loss had widened 7 per
cent to $5.8 million for the half year to June 30. Turnover
dropped 27 per cent to $16.7 million.

Loss per share was unchanged at 7 cents, while net tangible
assets per share were 83 cents, down from $1.25 previously.
No dividend was declared.


HONG FOK CORPORATION: Results announcement
------------------------------------------
Singapore BusinessTimes reports Hong Fok Corp has sunk
deeper into the red, with a loss of $15.8 million for the
first half of 1998 due to extraordinary losses which
climbed to $10.3 million from $1.1 million. The
extraordinary losses included a provision of $2.6 million
   
against the fall in value of long-term investments and a
$4.7 million loss from the disposal of an investment
property.

In the same period last year, the net loss was $2.95
million. Interim net tangible asset backing per share this
year fell to $6.31 from $7.47 due to a net deficit caused
by the revaluation of investment properties. Revenue,
however, rose 11 per cent to $29.2 million due to higher
gross rental income.


HWA HONG: Results announcement
------------------------------
Singapore BusinessTimes reports Hwa Hong's net profit fell
57 per cent to $3.6 million in the first half of 1998, as
revenue tumbled 53 per cent to $115.0 million. Earnings per
share fell to 2.2 cents from 5.18 cents.

Hwa Hong said revenue from its construction subsidiary fell
to $80.0 million from $195.6 million, while net premiums
recorded by its insurance subsidiary fell to $15.0 million
from $18.9 million. The insurance subsidiary also made a
provision of $5.31 million against the fall in value of its
equity investments. Net tangible asset backing per share
fell by 41 cents to $2.50 due to a revaluation of the                      
company's investment properties in Singapore.

There was an extraordinary gain of $1.97 million, mostly
from the sale of its interests in its insurance subsidiary.


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

HANA MICROELECTRONICS: Securities granted by the SET
----------------------------------------------------
The Stock Exchange of Thailand (SET) allowed The Hana
Microelectronics Public Company Limited (HANA) securities
to be traded on the SET after finishing  capital increase
procedures, starting 22 September 1998.


KIAN GWAN: Debt burden forces it to sell stake
----------------------------------------------
Kian Gwan (Thailand) Plc (KG) will sell its 90 per cent
stake in The Greater London House, an office building in
London, for the equivalent of Bt2.85 billion in order to
lessen the company's debt burden and finance future
investments. The transaction equals 84 per cent of its
total assets.

According to the statement filed with the Stock Exchange of
Thailand, KG said its wholly-owned subsidiary -- Kian Gwan
Land Ltd -- plans to sell its 90 per cent stake in the
office building for PDS 41.31 million.

Kian Gwan Land will receive payment from the buyer,
Resolution Camden (CI) Ltd, when KG's shareholders approve
the sale and share transfer.

Kian Gwan Land has recorded outstanding debts of PDS 28.04
million of which the company owes PDS 21.9 million to a
British bank and the remaining PDS 6.14 million to its
parent company in Thailand.

Analysts commented that the transaction would be the only
solution for KG to improve its liquidity. Finally, all
local property developers with shrinking operating income
will have to sell their assets in order to survive through
the tough economic situation.


KRUNG THAI BANK: To increase registered capital
-----------------------------------------------
The Bangkok Post reports state-owned Krung Thai Bank (KTB)
will increase its registered capital to ensure survival,
according to bank sources.

Its capital fund has been wiped out by the need to provide
more than 80 billion baht for losses on loans and debt
write-offs.

The bank would increase its registered capital by at least
130 billion baht this December through the conversion of
debt to the Financial Institutions Development Fund (FIDF)
into shares by the end of the year.

KTB sources said the needed new capital would be huge
because of the bank's non-performing loans, estimated at
240 billion baht or about 32% of the bank's total lending.
The amount was based on the current loan classification
rules which define any loan as non-performing if no payment
has been made for six months.

At the end of June, the KTB's provision for loan losses
totalled 54.23 billion baht. Its shares had a book value of
only 7.70 baht, and traded at six baht yesterday. The book
value would drop to -0.4 baht if full provision was made,
according to an analyst.

KTB's assets amounted to 813 billion baht, deposits 634
billion and credit extension 678 billion baht.


KRUNGTHAI THANAKIT: Merger with Union Bank has hit a snag
---------------------------------------------------------
The Bangkok Post reports the merger of Krungthai Thanakit
Finance and Securities and Union Bank of Bangkok has hit a
legal snag, with the finance company apparently unable to
take over the bank's licence.

The merger was one of the cornerstones of the financial
reform plan the government announced last month. State-
owned Krungthai Thanakit was to absorb Union Bank and 12
finance companies seized by regulators. After the mergers,
it would become a commercial bank.

But a banking source said that Article 38 of the Mergers
and Acquisitions Act states that no business licences can
be transferred following a merger.

If the law prohibits Union Bank from transferring its
licence, then one option would be for Union Bank to become
the core institution in the larger merger involving all the
finance companies. The other option is for the Finance
Ministry to issue a new banking licence to Krungthai
Thanakit.

Finance Minister Tarrin Nimmanhaeminda said officials were
studying the legal issues, but that Krungthai Thanakit
would remain the core for the mergers.

A different method is being used for state-owned Radhanasin
Bank and Laem Thong Bank, which are also merging. In this
case, Laem Thong Bank is serving as the core company, but
it will change its name to Radhanasin Bank after the
merger.


NATURAL PARK: Directors approve capital-increase plan
-----------------------------------------------------
The Nation reports Natural Park Plc's board of directors
approved a capital-increase plan from Bt3.88 billion to
Bt19 billion to increase working capital and reduce debt
burden. The 1.5 billion new shares will be sold to the
existing shareholders at a ratio of one old share to four
new shares, priced at Bt10 a piece. The subscription and
payment period have been scheduled for Nov 16 to 20 and Nov
23 to 27. The board of directors are authorised to sell the
remaining shares to other individuals and companies at the
same price.


NAVA FINANCE AND SECURITIES: Results announcement
-------------------------------------------------
Nava Finance and Securities PCL reports results for the
half-year ending June 30, 1998 as a net loss of Bt6.83
billion, which compares to a net profit of Bt159 million
for the corresponding 1997 period.


PAGAENG INDUSTRY: Sale of Western Metals stake in jeopardy
----------------------------------------------------------
The Bangkok Post reports Padaeng Industry Plc (PDI)'s
accord to sell a 36% stake in the company to Western Metals
(WML) for US$25 million (1,012.5 million baht) is in
jeopardy as the Australian mining firm is having second
thoughts.

WML has proposed additional conditions to close the deal
which was supposed to take place this month along with the
transfer of an initial payment.

Two months ago, PDI signed a memorandum of understanding to
sell a 35% stake for 14 baht a piece in order to raise
funds ahead of negotiating with its creditors to
restructure its 3.04 billion baht debt.

In the memorandum, WML agreed to transfer the funds to PDI
in two portions starting with $5 million in September and
the remaining $20 million in July next year.

However, the transfer has been delayed and new conditions
proposed which PDI directors are expected to discuss this
week. The nature of conditions have not been disclosed.


PRANDA JEWELLERY: Results announcement
--------------------------------------
Pranda Jewellery PCL reports results for the half-year
ending June 30, 1998 as a net loss of Bt259 million, which
compares to a net loss of Bt54.8 million for the
corresponding 1997 period.


RENOWN LEATHERWEAR: Negotiates with suppliers
---------------------------------------------
The Nation reports Renown Leatherwear Plc is negotiating
with its suppliers in the United States, Brazil and
Argentina for a one-month supplier credit to help it cope
with the liquidity crunch.

The company announced a Bt1.1 billion loss in the first
half of this year due to higher operating costs caused by
the weakened baht and lower export volume. Sale revenue
dropped 50 per cent from the same period last year to Bt600
million.

Atipun Wongpensri, assistant managing director, said Renown
had cut its production capacity by half early this year to
one million square feet per month. The company has not laid
off any employees so far.


SIAM COMMERCIAL BANK: Plans to increase capital
-----------------------------------------------
The Bangkok Post reports Siam Commercial Bank will press
ahead with plans to raise its capital to 40 billion baht by
year-end with the issue of 3.045 billion new shares
approved in May.

Half of the new shares will be sold to two new strategic
investors, according to Prakit Pradipasen, senior executive
vice-president of Siam Commercial Bank.

The remainder will be sold to existing bank shareholders.
The Crown Property Bureau, now the largest shareholder in
the bank with 26%, will subscribe to new shares to maintain
its majority holding.

Once the new share issue is completed, foreign shareholders
will see their holdings jump to 49% from 32.9% of paid-up
capital.

But if the bank cannot place the new shares and raise
capital, Siam Commercial Bank will enter into the
government's recapitalisation scheme, Mr Prakit said.

Japan's Long-Term Credit Bank will not subscribe to the new
shares because of its own financial difficulties. But Sanwa
Bank, another Japanese ally of Siam Commercial Bank, has
said it would take up new shares to maintain its existing
shareholdings.


SLC LEASING: Sues executives of former parent firm
--------------------------------------------------
The Asian Wall Street Journal report that the new
management of SLC Leasing has filed 10 lawsuits totaling
1.5 billion baht ($37 million) against executives of its
former parent Sitca Investment Finance & Securities and
related parties.

The lawsuits are based on SLC claims that after they had
examined their company's books, they have found records
showing accounting irregularities. Sitca Investment Finance
& Securities PCL owned SLC Leasing until late last year.  
SLC Leasing is a auto leasing company formerly known as
Sitca Leasing. Thai authorities closed its parent Sitca
Investment Finance & Securities along with 55 other
insolvent finance companies in December 1997.

The Asian Wall Street Journal has earlier reported that the
former parent company, Sitca Investment Finance &
Securities had transferred almost 2 billion baht to Sitca
Leasing (the previous name of SLC Leasing), and that the
money went straight out again in cash or checks without
vouchers to companies and individuals connected with Sitca
management. Officials of Sitca Investment Finance &
Securities PCL have also been accused of setting up five
companies to borrow a total of 415 billion baht from Sitca
and then use the money to buy new Sitca shares issued as
part of a capital raising effort in November 1995.


THAI PETROCHEMICAL: Among first to restructure debt
---------------------------------------------------
The Bangkok Post reports Thai Petrochemical Industry Plc
(TPI) is poised to become the first among scores of
recession-hit Thai companies to complete extensive debt
restructuring, using a Bank of Thailand blueprint, by the
end of next month.

TPI is negotiating with 140 lenders to convert 25% of its
total annual interest charges of 10 billion baht into
equity in the company.

The lenders were given the option of converting interest
into either preferred or common shares. TPI's debts total
US$3.8 billion.

Representatives from TPI and Chase Manhattan Bank, the
company's debt-restructuring adviser, are visiting Europe
and the United States to try to finalise negotiations with
lenders.

The debt-equity conversion is crucial for TPI. While
personnel costs account for only 4% of the company's total
expenditures, interest on loans accounts for 25%, which is
now beyond the capability of TPI to service.

TPI was also trying to spin off 50% of its shares in
subsidiaries in ports, oil depots and electricity in order
to raise $700 million to improve its liquidity over the
next five years.

After completing the debt-restructuring process, TPI
proposes to stick to its core businesses of petrochemicals,
oil refining and oil retailing, which contribute the bulk
of its total revenues.

The company's has forecast total revenues in both 1998 and
1999 of around 50 billion baht, compared with 29.9 billion
baht last year.


THAI RUNG UNION CAR: Unbuckles 25% stake in Autolift
----------------------------------------------------
The Nation Thai Rung Union Car Plc will sell a 25 per cent
stake in Autolift (Thailand) Co -- producer of seat-belts,
airbags and other automotive accessories -- to its partner
Autolift AB of Sweden for Bt25 million with a buy-back
agreement.

The agreement was signed on Sept 15. Thai Rung will retain
15 per cent in the company, down from 40 per cent.

The Thai company's stake in Autolift (Thailand) Co Ltd has
a registered capital of Bt100 million.

A Thai Rung Union Car Plc official said that because of the
slump in the automotive sector, which has dropped by about
70 per cent, Autolift (Thailand) Co Ltd has not been
registering profits. However, Thai Rung will still have the
option of buying back the shares.


UNION ASIA FINANCE: SEC gathers evidence against execs
------------------------------------------------------
The Nation reports SEC deputy secretary-general Prasarn
Trairatvorakul revealed that the SEC has gathered evidence
showing some executives of shutdown Union Asia Finance Plc
used inside information for personal benefit.

He noted that the evidence also showed some executives, who
hold more than 5 per cent of the company's capital, failed
to inform the SEC when the stake changed. The SEC is
looking for more evidence for consideration if the
executives should be prosecuted under civil or criminal
law, he said.

So far, the SEC has fined big-time investor Song
Watcharasriroj and Finance One Plc's three executives of
insider trading.


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,
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