TCRAP_Public/980929.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      

      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.  

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