/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/980929.MBXT R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, September 29, 1998, Vol. 1, No. 153 Headlines * C H I N A & H O N G K O N G * CENTURY CITY INTERNATIONAL: Results announcement FAR EAST HOLDINGS: Results announcement PALIBURG HOLDINGS: Makes provisions of $400 million PEARL ORIENTAL HOLDINGS: Results announcement SHANGHAI PUDONG: Denounces Moody's ratings as incomplete SIU-FUNG CERAMICS: Asset value sunk Siu-Fung rescue TAI PING CARPETS: Results announcement TAK WING INVESTMENT: Write-downs hit Tak Wing TENAGA NASIONAL: S&P lowers currency rating WAH TAK FUNG HOLDINGS: Developer seeks to reduce $1.2b debt WAH TUNG (E&M): Notice of members' and creditors' meetings * J A P A N * JAPAN LEASING: Files for court protection JAPAN NATIONAL OIL: MITI targets 30 ventures for closure LONG TERM CREDIT: Lawmakers make new pact on bank reform MITA INDUSTRIAL: Kyocera to take Mita as subsidiary NIKON CORPORATION: Expects to post losses NISSHO IWAI: To take Y161bn extraordinary loss in FY98 SONY MUSIC: Expects operating loss of Y2.2bn * K O R E A * DAEWOO GROUP: Subsidiaries face second exit orders HYUNDAI GROUP: Subsidiaries face second exit orders KIA MOTORS: Creditors see big debt cuts for third auction LG GROUP: Subsidiaries face second exit orders SAMSUNG GROUP: Subsidiaries face second exit orders SK GROUP: Subsidiaries face second exit orders TAEDONG CONSTRUCTION: Completes creditor reconciliation TONGBANG COMPANY: Selected as a workout target SUMYUNG STORAGE MANAGEMENT: Begins liquidation procedure * M A L A Y S I A * ACF HOLDINGS BHD: Results announcement ADVANCE SYNERGY BHD: Results announcement AOKAM PERDANA BHD: Results announcement ARAB-MALAYSIAN CORPORATION: Extension for debt revamp ARAB-MALAYSIAN MERCHANT BANK: S&P Cuts Rating On Five Banks BANK BUMIPUTRA MALAYSIA: S&P Cuts Rating On Five Banks BIDALAN MAJU SDN BHD: Voluntary winding up DASARMAS SDN BHD: Voluntary winding up GUNONG TAHAN DEVELOPMENT SDN BHD: Winding-up petition HONG LEONG BANK: S&P Cuts Rating On Five Banks HONG LEONG CREDIT BHD: Results announcement MCB HOLDINGS BHD: Results announcement MALAYAN BANKING: S&P Cuts Rating On Five Banks PRIME UTILITIES BHD: RM60Mil bonds downgraded RHB BANK: S&P Cuts Rating On Five Banks SENANDONG TRAVEL & TOURS SDN BHD: Winding-up petition SIME DARBY BHD: Results announcement SOUTH STRONG INDUSTRIES SDN BHD: Winding-up petition UNITED MERCHANT GROUP BHD: Results announcement YINGCO SDN BHD: Winding-up petition * P H I L I P P I N E S * PHILIPPINE AIRLINES: Cathay looks to buy PAL stake PHILIPPINE AIRLINES: Creditors begin to inspect assets PHILIPPINE AIRLINES: PAL's closure affects domestic banks * S I N G A P O R E * HWA KAY THAI (SING): Winding up following writ from DBS WING TAI HOLDINGS: Results announcement * T H A I L A N D * SIAM CEMENT GROUP: SCG to 'open' steel makers SIAM COMMERCIAL BANK: Racing against deadline THAI PETROCHEMICAL: Restructuring plan in the works UNION ASIA FINANCE: SEC gathers evidence against executives ================================= C H I N A & H O N G K O N G ================================= CENTURY CITY INTERNATIONAL: Results announcement ------------------------------------------------ Century City International, a Hong Kong property development and investment company, reported a huge provision of $657.2 million for the first half of the e year ended June 30. Net loss was $601.6 million, a sharp reversal from a net profit of $1 billion in the same period last year. The group's subsidiary Paliburg Holdings, also incurred a loss of $609.7 million after charging $517.2 million as provision for loss. More than $400 million has been made against the sharing of the net loss recorded by Chi Cheung Investment. Chairman Lo Yuk-sui said the huge provision was made against certain investments that the group has committed to as well as various receivables. He declined to specify the items. He hinted more provisions on property might be made in the next half of the year. FAR EAST HOLDINGS: Results announcement --------------------------------------- Far East Holdings International has managed to narrow its attributable losses to $9.23 million for the six months to June 30, down from $9.63 million for the first half of last year. This comes despite reporting a $5.96 million exceptional loss against investments, after reporting a $1.28 million exceptional loss last year. PALIBURG HOLDINGS: Makes provisions of $400 million --------------------------------------------------- Paliburg Holdings, the Hong Kong property arm of Century City Group, is making a provision of almost $400 million to cover losses incurred by Chi Cheung. Chi Cheung -- 74.06% owned by Rapid Growth, in turn 50% owned by Paliburg -- recently reported losses of $316.3 million for the first six months of the year. Paliburg Holdings posted a net loss for the half to June of $609.7 million, with losses per share of 26.3 cents. PEARL ORIENTAL HOLDINGS: Results announcement --------------------------------------------- Pearl Oriental Holdings, a property investor in Hong Kong announced a $69 million loss for the six months to June from last year's $202 million attributable profit, a 166 % turnaround. An exceptional investments in securities and a provision for loss arising from a securities brokerage application. SHANGHAI PUDONG: Denounces Moody's ratings as incomplete -------------------------------------------------------- Shanghai Pudong Development Bank (SPDB) said the ratings of its financial health by US credit rating agency Moody's Investors Service are unacceptable and inaccurate. SPDB said Moody's did not have complete credit information or understanding of its operation, so its assessment lacks objectivity. Moody's assigned ratings of Ba1 and Not prime for the bank's long-term and short-term foreign currency deposits and an E-plus for its financial strength. The agency said the ratings were based on the deteriorating economic environment, the bank's short history and their unproven record in dealing with severe market conditions. SIU-FUNG CERAMICS: Asset value sunk Siu-Fung rescue --------------------------------------------------- According to the SCMP, the deteriorating net-asset value of financially troubled Siu-Fung Ceramics Holdings has been a key reason for the withdrawal by Kumagai Gumi (Hong Kong) from a $800 million rescue bid, as sources close to the rescuer said. It is understood that growing financial problems at Siu- Fung prompted Kumagai to reject the request by Siu-Fung to extend the deadline of its debt-restructuring agreement with creditors beyond September 1. Other members of the Kumagai-led consortium are China State Bureau of Light Industry and Beijing First Light Industry Group. A source said Kumagai originally expected the shares would have a net asset value of up to 32 cents but had since questioned their true value. Timing was a crucial factor in the failure of the rescue bid. The source said Siu-Fung's net-asset value had dwindled as the rescue process had dragged on. The global financial crisis had also aggravated the financial woes of Siu-Fung, further eroding its net-asset value. Other factors for the collapse of the deal included conflicts within Siu-Fung and the exodus in the past two years of management personnel and the technological know-how when the firm's share trading was suspended. The source said Kumagai would not pursue another rescue attempt but could not say what the position was for other mainland parties in the consortium as well as China Everbright Group, which had previously put forward a rescue proposal. It is hoped that after Kumagai's withdrawal, the ultimate controlling shareholder of Kumagai, China Everbright Group, would help rescue Siu-Fung. TAI PING CARPETS: Results announcement -------------------------------------- Net loss for the carpets manufacturer grew 12.89 times as a result of and exceptional loss. It posted a loss of $63.63 million in the six months to June 30 against $7.97 in the same period last year. The exceptional loss was on provision for costs of fixed and other assets in the furniture subsidiaries, including goodwill acquisition of $12.8 million. TAK WING INVESTMENT: Write-downs hit Tak Wing --------------------------------------------- According to the SCMP, troubled property investment and construction firm Tak Wing Investment (Holdings) has revealed a $78 million provision for the write-downs of its property portfolio. Chairman Chung Chun-keung, who is said to be looking for ways to divest his stake in the company, described most of the firm's property-related businesses as "discouraging". However, Tak Wing narrowed its attributable losses to $33 million for the six months to June, down from a $226 million net loss for the period last year. TENAGA NASIONAL: S&P lowers currency rating ------------------------------------------- Global ratings agency Standard & Poor's yesterday lowered its local currency rating on Malaysian power utility Tenaga Nasional , saying the company was facing financial pressure. The local currency rating on Tenaga was downgraded to BBB+ from A - while the foreign currency rating was affirmed at BBB- following a downgrade on September 15 due to a lowering of Malaysia's sovereign rating. WAH TAK FUNG HOLDINGS: Developer seeks to reduce $1.2b debt ----------------------------------------------------------- According to the SCMP, property developer Wah Tak Fung Holdings, which specialises in grade B commercial property and serviced flats, is negotiating the sale of some of its commercial properties to reduce its $1.2 billion debt. The company reported a net loss of $256.69 million for the year to March including an exceptional loss of $253.4 million, compared to a $99.59 million for the previous year, due to a sharp deterioration in the property market. The financial controller said the company was looking to reduce its debt to less than $1 billion. This month the company completed the sale of a vacant site in Kennedy Street in Wanchai to Hing Kong Holdings for $163.8 million. Proceeds of the sale would be used to reduce debt. Yesterday the company said it was working with bankers to reschedule its short-term debts and believe that short-term loans can be extended to long-term debt. The company expressed confidence about the rebound in the grade B office market because interest rates are more stable. WAH TUNG (E&M): Notice of members' and creditors' meetings ---------------------------------------------------------- According to the Hong Kong Standard, a notice dated Sept 24 says that meetings of the members and creditors of Wah Tung (E&M) Limited will be held at Room 103, Duke of Windsor Social Service Building, 15 Hennessy Road, Wanchai, Hong Kong on Oct 19. Meeting of members will be held at 10:30 am and meeting of creditors wil be held at 11:00 am. to appoint a Liquidator and to consider further matters relevant to the creditors' voluntary winding-up. Proxies must be lodged at 7/F., Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong not less than 24 hours before the time appointed for the holding of the meeting. The notice was issued by the company's director, Brian Ho. ========= J A P A N ========= JAPAN LEASING: Files for court protection ----------------------------------------- The Asian Wall Street Journal cited a Reuters report that Japan Leasing Corporation has filed for court protection. Japan Leasing is an affiliate of the Long-Term Credit Bank (LTCB) of Japan Ltd. Japan's ruling Liberal Democratic Party has planned to invest public money into LTCB to facilitate a merger between it and Sumitomo Trust & Banking Company. As part of this deal, both banks were to forgive their loans to Japan Leasing, which would reportedly improve the chances that Japan Leasing could repay a series of debts it owes to agricultural cooperatives. However, opposition lawmakers reportedly fiercely opposed this plan, in part because it effectively bailed out Liberal Democratic Party constituents among rural financial institutions. The filing of Japan Leasing's application for court receivership is viewed as a victory for opposition lawmakers. A Kyodo News reports says the collapse of Japan Leasing could affect restructuring plans at the other two LTCB affiliates -- Japan Landic Corp. and Nippon Enterprise Development Corp., industry sources said. JAPAN NATIONAL OIL: MITI targets 30 ventures for closure -------------------------------------------------------- The Nihon Keizai newspaper reports the Ministry of International Trade and Industry, under its plan to overhaul the debt-ridden Japan National Oil Corp., is prepared to shut down nearly 30 petroleum-development companies financed by the government-affiliated entity, ministry sources say. The restructuring blueprint, drawn up by a MITI panel and finalized Friday, calls for Japan National Oil to pull out of development projects that offer no prospects of profitability. MITI will also consider covering losses by selling to the public shares of healthy Japan National Oil subsidiaries that have built up a cushion of retained earnings. The restructuring plan is expected to reduce significantly the final losses stemming from the corporation's bad-loan burden. The ministry, which earlier disclosed that Japan National Oil has at least 1 trillion yen in nonperforming loans, estimates that the entity's losses will be contained to a maximum of 250 billion yen in 20 years' time. According to ministry sources, the restructuring plan all but confirms the liquidation of six companies in serious condition, including Japan China Oil Development Co., Hokkyoku Sekiyu and Sakhalin Oil Development Co. The ministry is also leaning toward liquidating over 10 more development companies financed with loans or investments from Japan National Oil. All told, close to 30 ventures could be liquidated. Designated for survival, however, is Japan Oil Development Co., the biggest debtor to Japan National Oil, because the company is considered capable of paying back at least a portion of its debt. LONG TERM CREDIT: Lawmakers make new pact on bank reform -------------------------------------------------------- Reuters news service reports Japan's ruling party and main opposition groups agreed on Saturday to nationalise an ailing major bank and allow public money to be used to help the troubled banking sector. The broad agreement -- by the ruling Liberal Democratic Party (LDP) and opposition Democratic Party and Heiwa Kaikaku group -- is expected to clear the way for the passage of financial sector bills through parliament by October 7. The plan agrees to nationalise the LTCB but still leaves open the possibility for a merger with Sumitomo Trust after LTCB has restructured itself under state control. Under the nationalisation, LTCB would be forced to write off problem loans and sell off healthy assets to the highest bidder -- hoped by the government to be Sumitomo. Japan's top government spokesman Hiromu Nonaka said on Friday that a cancellation of an LTCB merger with Sumitomo, which the government has pushed, could not be ruled out. Sumitomo is reconsidering the merger plans, Kyodo News said. MITA INDUSTRIAL: Kyocera to take Mita as subsidiary --------------------------------------------------- The Nihon Keizai newspaper reports Kyocera Corp. will make Mita Industrial Co. into a wholly owned subsidiary when it reduces the failed copier maker's capital to zero before recapitalizing the company at significantly higher levels in order to strengthen its management base, Kyocera officials said Friday. The Kyoto-based ceramics manufacturer expressed interest in supporting Mita Industrial after it filed for court protection, but faced difficulties in continuing operations at the failed firm's overseas units. Mita Industrial filed for court protection in August under the Corporate Rehabilitation Law. The Osaka District Court is due to decide when to start rehabilitation procedures in early October. The company's main banks have agreed to continue trading with its overseas subsidiaries. Sakura Bank (8314) and Industrial Bank of Japan (8302) have agreed to continue doing business with subsidiaries in Hong Kong, where the company manufactures some 60% of its total output, and in its main markets in the U.S. and Europe until the end of November. NIKON CORPORATION: Expects to post losses ----------------------------------------- The Nihon Keizai cites a Dow Jones reports that Nikon Corp. said Friday it now expects to post losses this fiscal year as the Asian economic crisis and the recession in Japan have reduced demand for its products. Nikon said it expects to post a group net loss of 12.0 billion yen for the fiscal year ending next March, worse than the 1.0 billion yen profit it previously forecast. Group sales are now seen at 340 billion yen. Last fiscal year it had a group net profit of 8.3 billion yen on sales of 372.1 billion yen. On a parent basis, it now predicts a pretax loss of 2.5 billion yen for the fiscal half and a loss of 5.0 billion yen for the fiscal year. Parent fiscal year sales are seen at 270 billion yen. Last fiscal year it had parent pretax profit of Y8.4 billion on sales of 293.9 billion yen. NISSHO IWAI: To take Y161bn extraordinary loss in FY98 ------------------------------------------------------ The Nihon Keizai newspaper reports Nissho Iwai Corp. will post 161 billion yen in extraordinary loss in fiscal 1998 ending March from group restructuring costs, company officials said Friday. Its net loss is estimated at 40 billion yen. Nissho Iwai will liquidate NI Finance Corp. by the end of March 1999, forgiving 112 billion yen in loans to the wholly owned subsidiary. It will also renounce 10 billion yen in short-term loans receivable to its wholly owned unit World Leasing Corp. SONY MUSIC: Expects operating loss of Y2.2bn -------------------------------------------- The Nihon Keizai newspaper Sony Music Entertainment (Japan) Inc. expects to post an operating loss of 2.2 billion yen, its first since listing its shares in 1991, for the half year ending September, company officials said Friday. Operating profit totaled 5.6 billion yen in the previous term. The entertainment software company attributes the loss to declining sales of music CDs, and its failure to offset increasing advertising expenses to promote new music. ========= K O R E A ========= DAEWOO GROUP: Subsidiaries face second exit orders -------------------------------------------------- The Korea Times reported that creditor banks of Korea's five largest family owned conglomerates (or chaebols) will submit by the end of September a list of additional non- viable chaebol affiliates to the Financial Supervisory Commission (FSC). The report states that two to three subsidiaries of each of the five will be included on this second "Exit Order" list. A similar report in the Korea Herald states that 10 to 15 marginal affiliates will be singled out for forced liquidation by next Wednesday. These exit orders target those weak subsidiaries deemed incapable of standing alone without aid from their sister affiliated companies. The banks generating this list for the FSC are the Korea First Bank, Hanil Bank, Commercial Bank of Korea, Cho Hung Bank, and the Korea Exchange Bank. HYUNDAI GROUP: Subsidiaries face second exit orders --------------------------------------------------- The Korea Times reported that creditor banks of Korea's five largest family owned conglomerates (or chaebols) will submit by the end of September a list of additional non- viable chaebol affiliates to the Financial Supervisory Commission (FSC). The report states that two to three subsidiaries of each of the five will be included on this second "Exit Order" list. A similar report in the Korea Herald states that 10 to 15 marginal affiliates will be singled out for forced liquidation by next Wednesday. These exit orders target those weak subsidiaries deemed incapable of standing alone without aid from their sister affiliated companies. The banks generating this list for the FSC are the Korea First Bank, Hanil Bank, Commercial Bank of Korea, Cho Hung Bank, and the Korea Exchange Bank. KIA MOTORS: Creditors see big debt cuts for third auction --------------------------------------------------------- According to the SCMP, the South Korean media said yesterday that creditors of Kia Motors Corp and Asia Motors are willing to write off 4.5 trillion won of debt in a third attempt to sell the firms. The Korea Broadcasting System report said that creditors also plan to invite Ford Motor to the third auction. In the second auction, which was aborted on Wednesday after all bidders asked for more debt write-offs, creditors had offered to write off 2.9 trillion won of the two car makers' combined debt, estimated at about 12 trillion won. Industry analysts say a closer examination of the books could easily raise the figure to 15 trillion won. Ford dropped out saying the debt rescheduling and write- offs were insufficient. Samsung was most aggressive in its bidding for fears of being squeezed out of the car business without Kia. If Samsung's bid had won, it would have found the task of reviving Kia difficult given a national slump in car sales and with domestic car sales expected to fall by 62 per cent this year from their peak in 1996. Analysts forecast Samsung Motors, which only started up car production in March, would register a loss of 500 billion won this year, and the firm's shares had suffered badly on concern it would win the second auction. After the collapse of the auction, some Samsung Group stocks ended at their daily permissible highs on Thursday. Kia and Asia Motors have been under court receivership since last October. Their collapse was partly blamed for triggering a financial crisis that put Korea teetering on the brink of national default last year. LG GROUP: Subsidiaries face second exit orders ---------------------------------------------- The Korea Times reported that creditor banks of Korea's five largest family owned conglomerates (or chaebols) will submit by the end of September a list of additional non- viable chaebol affiliates to the Financial Supervisory Commission (FSC). The report states that two to three subsidiaries of each of the five will be included on this second "Exit Order" list. A similar report in the Korea Herald states that 10 to 15 marginal affiliates will be singled out for forced liquidation by next Wednesday. These exit orders target those weak subsidiaries deemed incapable of standing alone without aid from their sister affiliated companies. The banks generating this list for the FSC are the Korea First Bank, Hanil Bank, Commercial Bank of Korea, Cho Hung Bank, and the Korea Exchange Bank. SAMSUNG GROUP: Subsidiaries face second exit orders --------------------------------------------------- The Korea Times reported that creditor banks of Korea's five largest family owned conglomerates (or chaebols) will submit by the end of September a list of additional non- viable chaebol affiliates to the Financial Supervisory Commission (FSC). The report states that two to three subsidiaries of each of the five will be included on this second "Exit Order" list. A similar report in the Korea Herald states that 10 to 15 marginal affiliates will be singled out for forced liquidation by next Wednesday. These exit orders target those weak subsidiaries deemed incapable of standing alone without aid from their sister affiliated companies. The banks generating this list for the FSC are the Korea First Bank, Hanil Bank, Commercial Bank of Korea, Cho Hung Bank, and the Korea Exchange Bank. SK GROUP: Subsidiaries face second exit orders ---------------------------------------------- The Korea Times reported that creditor banks of Korea's five largest family owned conglomerates (or chaebols) will submit by the end of September a list of additional non- viable chaebol affiliates to the Financial Supervisory Commission (FSC). The report states that two to three subsidiaries of each of the five will be included on this second "Exit Order" list. A similar report in the Korea Herald states that 10 to 15 marginal affiliates will be singled out for forced liquidation by next Wednesday. These exit orders target those weak subsidiaries deemed incapable of standing alone without aid from their sister affiliated companies. The banks generating this list for the FSC are the Korea First Bank, Hanil Bank, Commercial Bank of Korea, Cho Hung Bank, and the Korea Exchange Bank. TAEDONG CONSTRUCTION: Completes creditor reconciliation ------------------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Taegu District court has announced that the Taedong Construction Company completed its creditor reconciliation procedure. TONGBANG COMPANY: Selected as a workout target ---------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Korea Creditor Banks Association has decided to put the Tongbang Company under its workout program. The Association will wait until December 14, 1998 to determine further plans regarding this company. In Korea, 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". SUMYUNG STORAGE MANAGEMENT: Begins liquidation procedure -------------------------------------------------------- Sumyung Storage Management Company announced in the Korean language Maeil Kyungje the company has decided to liquidate at its creditor meeting on September 11, 1998. The address of the company is 45-1 Mokdong-ri, Kyoha-myun, Paju-shi and the president is Mr. Paek Kap-su. =============== M A L A Y S I A =============== ACF HOLDINGS BHD: Results announcement -------------------------------------- ACF Holdings Bhd (listed on the KLSE) posted a half year post-tax loss of RM45.59mil for the half year ended 30/6/98, compared to a post-tax profit of RM17.79mil. EPS fell 360% from RM0.095 to a loss per share of RM0.25 during the same period. ADVANCE SYNERGY BHD: Results announcement ----------------------------------------- Advance Synergy Bhd (listed on the KLSE) posted a post-tax loss of RM82.33mil for the half year ended 30/6/98, compared to a post-tax profit of RM37.31mil. EPS fell 409.9% from RM0.05 to a loss per share of RM0.15. AOKAM PERDANA BHD: Results announcement --------------------------------------- Aokam Perdana Bhd (listed on the KLSE) reported a pre-tax loss of RM268.618mil for the year ended 30/6/98, compared to a pre-tax loss of RM145.004mil previously. ARAB-MALAYSIAN CORPORATION: Extension for debt revamp ----------------------------------------------------- Amcorp (listed on the KLSE), which is under court protection from creditors under Section 176 of the Companies Act in order to restructure its debts, has been granted a 3-month extension to January 1999, of the order. ARAB-MALAYSIAN MERCHANT BANK: S&P Cuts Rating On Five Banks ----------------------------------------------------------- According to the Asian Wall Street Journal, Standard and Poor's Ratings Group lowered its ratings of five Malaysian banks, stating that the Malaysian banking sector faces increasing economic and industry risks. The banks affected are Arab-Malaysian Merchant Bank Bhd., Bank Bumiputra Malaysia Bhd., Hong Leong Bank Bhd., Malayan Banking Bhd. (lowered local currency counterparty credit rating), and RHB Bank Bhd. The new ratings were not provided in the article. BANK BUMIPUTRA MALAYSIA: S&P Cuts Rating On Five Banks ------------------------------------------------------ According to the Asian Wall Street Journal, Standard and Poor's Ratings Group lowered its ratings of five Malaysian banks, stating that the Malaysian banking sector faces increasing economic and industry risks. The banks affected are Arab-Malaysian Merchant Bank Bhd., Bank Bumiputra Malaysia Bhd., Hong Leong Bank Bhd., Malayan Banking Bhd. (lowered local currency counterparty credit rating), and RHB Bank Bhd. The new ratings were not provided in the article. BIDALAN MAJU SDN BHD: Voluntary winding up ------------------------------------------ The members of Bidalan Maju Sdn Bhd on 25/9/98 resolved to wind-up the company voluntarily. Creditors of the company are requested to submit their claims before 26/10/98. DASARMAS SDN BHD: Voluntary winding up -------------------------------------- The members of Dasarmas Sdn Bhd on 18/9/98 resolved to wind-up the company voluntarily. Creditors of the company are requested to submit their claims before 28/10/98. GUNONG TAHAN DEVELOPMENT SDN BHD: Winding-up petition ----------------------------------------------------- OCBC Finance Bhd on 17/8/98 petitioned for the winding-up of Gunong Tahan Development Sdn Bhd. The petition is directed to be heard on 15/1/99. HONG LEONG BANK: S&P Cuts Rating On Five Banks ---------------------------------------------- According to the Asian Wall Street Journal, Standard and Poor's Ratings Group lowered its ratings of five Malaysian banks, stating that the Malaysian banking sector faces increasing economic and industry risks. The banks affected are Arab-Malaysian Merchant Bank Bhd., Bank Bumiputra Malaysia Bhd., Hong Leong Bank Bhd., Malayan Banking Bhd. (lowered local currency counterparty credit rating), and RHB Bank Bhd. The new ratings were not provided in the article. HONG LEONG CREDIT BHD: Results announcement ------------------------------------------- Hong Leong Credit Bhd (listed on the KLSE) posted a post- tax loss of RM194.52mil for the year ended 30/6/98, compared to a post-tax profit of RM394.91mil. EPS fell 152.9% from RM0.68 to a loss per share of RM0.36. MCB HOLDINGS BHD: Results announcement -------------------------------------- MCB Holdings Bhd (listed on the KLSE) reported a group pre- tax loss of RM10.27mil for the year ended 30/6/98, compared to pre-tax profit of RM33.92mil previously. MALAYAN BANKING: S&P Cuts Rating On Five Banks ---------------------------------------------- According to the Asian Wall Street Journal, Standard and Poor's Ratings Group lowered its ratings of five Malaysian banks, stating that the Malaysian banking sector faces increasing economic and industry risks. The banks affected are Arab-Malaysian Merchant Bank Bhd., Bank Bumiputra Malaysia Bhd., Hong Leong Bank Bhd., Malayan Banking Bhd. (lowered local currency counterparty credit rating), and RHB Bank Bhd. The new ratings were not provided in the article. PRIME UTILITIES BHD: RM60Mil bonds downgraded --------------------------------------------- Rating Agency Malaysia has downgraded the RM60mil redeemable unsecured bonds of Prime Utilities Bhd (listed on the KLSE) from BB1 to BBB2. RHB BANK: S&P Cuts Rating On Five Banks --------------------------------------- According to the Asian Wall Street Journal, Standard and Poor's Ratings Group lowered its ratings of five Malaysian banks, stating that the Malaysian banking sector faces increasing economic and industry risks. The banks affected are Arab-Malaysian Merchant Bank Bhd., Bank Bumiputra Malaysia Bhd., Hong Leong Bank Bhd., Malayan Banking Bhd. (lowered local currency counterparty credit rating), and RHB Bank Bhd. The new ratings were not provided in the article. SENANDONG TRAVEL & TOURS SDN BHD: Winding-up petition ----------------------------------------------------- Arab-Malaysian Finance Bhd on 30/7/98 petitioned to wind-up Senandong Travel & Tours Sdn Bhd. The petition is directed to be heard on 10/11/98. SIME DARBY BHD: Results announcement ------------------------------------ Sime Darby Bhd (listed on the KLSE) posted a post-tax loss of RM386.2mil for the year ended 30/6/98, compared to a post-tax profit of RM1.175bil. EPS fell about 166.4% from RM0.35 to a loss per share of RM0.23. SOUTH STRONG INDUSTRIES SDN BHD: Winding-up petition ---------------------------------------------------- Besalon International Ltd, Multi Resources Industries Sdn Bhd and Multi Resources Holdings Sdn Bhd on 9/9/98 petitioned for the winding-up of South Strong Industries Sdn Bhd. The petition is directed to be heard on 27/11/98. UNITED MERCHANT GROUP BHD: Results announcement ----------------------------------------------- United Merchant Group Bhd (listed on the KLSE) posted a post-tax loss of RM51.97mil for the half-year ended 30/6/98, compared to a post-tax profit of RM37.23mil. EPS dropped from RM0.11 to a loss per share of RM0.14 YINGCO SDN BHD: Winding-up petition ----------------------------------- Sky Supplies & Trading Sdn Bhd on 26/8/98 petitioned for the winding-up of Yingco Sdn Bhd. The petition is directed to be heard on 15/10/98. ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: Cathay looks to buy PAL stake -------------------------------------------------- According to the SCMP, Cathay Pacific Airways and Singapore Airlines are vying for a stake in PAL which shut down on Wednesday. PAL said other airlines interested in a stake were German airline Lufthansa, Northwest Airlines and Taiwan's Eva Air. Andrew Herdman, director, Corporate Communications at Swire Pacific confirmed that Cathay was holding talks with PAL about possible purchase of assets or operations, or the continuation of existing business agreements. PAL supplies Cathay with catering services and ground handling in Manila, while Cathay supplies PAL with catering services in Hong Kong. PHILIPPINE AIRLINES: Creditors begin to inspect assets ------------------------------------------------------ Agence France-Presse reports PAL creditors began to lay hands on the defunct flag carrier's assets Friday as the archipelago braced for fallout from the loss of its main domestic air bridge. US Export-Import Bank officials and Airbus Industrie experts were in Manila Friday to inspect PAL aircraft in preparation for repossessing them, airline officials said. Although PAL had earlier obtained protection from its creditors, Eximbank, which financed the acquisition of the plane, was able to get an exemption from a San Francisco court and received authorization to seize the plane whose flight back to Manila would have been PAL's last. PAL spokesmen said the seizure was "an act of bad faith" but added they would not be taking any action to avoid further costs. PHILIPPINE AIRLINES: PAL's closure affects domestic banks --------------------------------------------------------- Agence France-Presse cites a report by ratings agency Thomson BankWatch that the closure of Philippine Airlines (PAL) will put pressure on two domestic banks with large exposure to the carrier, but the banking system should weather the impact. Philippine National Bank (PNB), a PAL shareholder which also lent 80 million dollars to the airline, and Allied Banking Corp., owned by PAL chairman and majority shareholder Lucio Tan, would be "most severely affected," the agency said. The airline, 2.1 billion dollars in debt and in receivership, owes 90 billion pesos (200 million dollars) to eight Filipino banks. ================= S I N G A P O R E ================= HWA KAY THAI (SING): Winding up following writ from DBS ------------------------------------------------------- The Singapore subsidiary of debt-ridden trading firm Hwa Kay Thai is being wound up following a writ of seizure from DBS Bank, while the parent company in Hongkong attempts to save itself from insolvency. Hwa Kay Thai (Singapore) said the voluntary winding-up came after it received a writ of seizure and sale filed by DBS Bank in Singapore to satisfy a judgment debt of S$3.4 million and 24,837 Malaysian ringgit (S$11,159). Hongkong-listed Hwa Kay Thai, a garment maker and distributor, had described DBS Bank as a "substantial creditor" of its Singapore subsidiary. As the total liabilities of Hwa Kay Thai (Singapore) have exceeded its total assets for the past two financial years, its winding-up would not cause any deterioration in the parent company's consolidated financial position, it said in an announcement last week. WING TAI HOLDINGS: Results announcement --------------------------------------- Wing Tai Holdings, a Singapore property developer, said it swung to a loss of S$138 million for the year ending June 30 as it set aside money for a fall in the value of its development properties. The company, which accumulated a large land bank at the top of a heated market in the past two years, blamed the result on the uncertainties in Singapore and the regional economies. The bulk of Wing Tai's projects are in Singapore although it also has a 30% stake in an $8 billion apartment project near in Hong Kong's mass transit station and other projects in the mainland, Malaysia and Indonesia. =============== T H A I L A N D =============== SIAM CEMENT GROUP: SCG to 'open' steel makers --------------------------------------------- The Nation reports the head of Siam Cement Group's steel business Tuesday suggested that foreign strategic partners be sought to hold the majority stake in some of the group's seven companies in this sector. Wirash Krittaphol, a senior executive overseeing SCC's steel business, said decisions will be made after business reorganisation consultant McKinsey & Co has completed a study of the group's businesses next month. The study will help identify companies in the steel industry for which foreign equity participation is needed. Of the seven companies in the steel industry, Cementhai Steel is the group's holding company in which Siam Cement Co controls 100 per cent. Other firms are Siam Iron and Steel Co Ltd, producer of deformed bars, round bars, small- section steel, and wire rods; Siam Construction Steel, producer of deformed bars, round bars; Construction Steel Trading (marketing company). SIAM COMMERCIAL BANK: Racing against deadline --------------------------------------------- The Nation reports Siam Commercial Bank (SCB) is expected to join the government's tier-1 scheme to raise capital if the country's fourth largest bank fails in its gruelling process to recapitalise Bt30-Bt40 billion by the year-end, a top executive said. Director and senior executive vice president of the bank, Prakit Pradipasen, said that the bank is aiming at wrapping up the capital increase process no later than November this year so it could sign contracts with SCB's new foreign partners the following month. According to Prakit, SCB needs Bt30-Bt40 billion to raise its tier-1 capital while the bank's tier-2 capital would be raised from Bt10 billion to Bt22 billion through the bank's participation in the state's tier-2 scheme. The Bank of Thailand recently relaxed its capital adequacy rules to allow each bank to maintain the level of tier-1 capital at only 4.25 per cent of risk-weighted assets. A similar ratio is required of the tier-2 capital in a move to ease banks' fund-raising burden. Prakit said that SCB is now stepping up efforts to finalise its debt restructuring process as is required by the government for its participation in the scheme. He said that the deal with foreign strategic partners to boost the bank's tier-1 capital is under negotiation and due diligence is under way. THAI PETROCHEMICAL: Restructuring plan in the works --------------------------------------------------- The Nation reports Thai Petrochemical Industry Plc (TPI) will propose its debt-restructuring plan to 140 creditors for approval within six weeks and ask executives from the Bank of Thailand to endorse the plan so that creditor confidence can be built up, said Wachirapunthu Promprasert, executive vice president and chief finance officer. TPI is seeking strategic partners for non-earning assets, including in port and power plants, hoping to reduce its principal by US$700 million in five years. He said support from the country's central bank will facilitate negotiations with creditors. Once the plan is approved by the creditors, TPI will inform the Stock Exchange of Thailand and its shareholders. Its debt- restructuring plan includes a ten-year business overview. The debt-restructuring plan is almost complete. Details are being drawn up on the plan implementation and the legal issues involved. For the negotiation with its creditors, Wachirapunthu said TPI will ask for a loan extension of five to 10 years. It will also convert 25 per cent of interest payment to equity. Its creditors would be able to choose between preferred share or common stock. TPI will have a $3.2- billion debt with a $250-million interest payment. UNION ASIA FINANCE: SEC gathers evidence against executives ----------------------------------------------------------- The Nation reports SEC deputy secretary-general Prasarn Trairatvorakul revealed that it 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, 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 * * *