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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 30, 1998, Vol. 1, No. 154
Headlines
* C H I N A & H O N G K O N G *
CITIC PACIFIC: Moody's downgrades issuer rating
CLIMAX INTERNATIONAL: Submits proposal on refinancing
ENG KONG HOLDINGS: Results announcement
GRANDMART SUPERMARKET: Bias fears spark challenge
NOBLE GROUP: Results announcement
WHARF HOLDINGS: S&P takes Wharf off watch list
* I N D O N E S I A *
SALIM GROUP: Speculation on asset-for-debt deal
* J A P A N *
ASCII CORPORATION: IBJ agrees to bail-out plan for Ascii
DAIEI INC: Results announcement
JAPAN LEASING: Details on Tokyo's biggest post-war flop
JAPAN LEASING AUTO: Collapses with 126 bil. yen debts
LONGCHAMP COMPANY: Files for bankruptcy
LONG TERM CREDIT: Shares fall to all-time low
LONG TERM CREDIT: Sumitomo Trust to continue merger talks
NIPPON ENTERPRISE: May follow Japan Leasing
NIPPON LANDIC: May follow Japan Leasing
RICOH COMPANY: Holds 413,360 Japan Leasing shares
TDK CORP: To post 8 bln yen loss from Russia default
* K O R E A *
DONGBANG PEREGRINE SECURITIES: Ordered to close by FSC
KLB SECURITIES: Ordered to close by FSC
KIA MOTORS: Ford not impressed with third auction
HANGDO COMPREHENSIVE FINANCING: Firm is insolvent
HANSOL COMPREHENSIVE FINANCING: Firm in bankruptcy
KORYO COMPREHENSIVE FINANCING: Firm is insolvent
SK GROUP: Affiliate calls in loans from sister companies
* M A L A Y S I A *
FOURSEA CONSTRUCTION (M) SDN BHD: Winding-up petition
LION TECK CHIANG: Results announcement
SYARIKAT ZASABINA SDN BHD: Winding-up petition
TAXI VENTURES & HOLDINGS SDN BHD: Voluntary winding up
TELEKOM MALAYSIA: Unperturbed by loan exposure
* P H I L I P P I N E S *
PHILIPPINE AIRLINES: PAL to fly again as union deal struck
* T H A I L A N D *
BANGCHAK PETROLEUM PCL: Results announcement
BANPU PCL: Capital increase plan
CP POKPHAND: Results announcement
RAIMON LAND PCL: Debenture holders will not be paid
SAMART CORPORATION: Shuts down three ailing units
SIAM SYNTEC CONSTRUCTION: Faces possible delisting
SUPALAI PCL: Results announcement
THAI T&T: Moves for debt restructuring
UNION ASIA FINANCE: SEC approves suspension of business
=================================
C H I N A & H O N G K O N G
=================================
CITIC PACIFIC: Moody's downgrades issuer rating
-----------------------------------------------
The Asian Wall Street Journal Reported that Moody's
Investor Services has lowered Citic Pacific's Ltd. issuer
rating from Baa1 to Baa2. This rating change reflects this
conglomerate's weakening financial position due to its high
debt level. Citic Pacific's debt has been relatively high
since it bought a 20 percent stake in Hong Kong's China
Light & Power in March of 1997. It was also noted that the
deteriorating operating environment in Hong Kong and
elsewhere in the region has negatively effected its
business performance.
Moody's representatives were also concerned that Citic
Pacific's Beijing based parent's (the China International
Trust & Investment Corporation) offer of financial
assistance to executives of Citic Pacific acts to
strengthen the mainland China parent's influence. This is
reportedly viewed as a negative development.
CLIMAX INTERNATIONAL: Submits proposal on refinancing
-----------------------------------------------------
According to the SCMP and the Hong Kong Standard,
stationery maker Climax International's chief executive
Simon Hsu Nai-cheng said the company submitted last Friday
a revised proposal to bank creditors to refinance its $600
million in debts and was waiting for reply from its 26 bank
creditors. The earlier proposal, which included a rights
issue, was made impossible due to the company's negative
net asset value. Mr Hsu would not reveal details of the
revised proposal pending an announcement.
According to the SCMP, Climax, ultimately controlled by the
diversified United Pacific Industries, has a negative net
asset value of $223 million at the March year-end this year
after a $480.12 million net loss for the full year.
According to the Hong Kong Standard, for the year ended Mar
31, Climax has net current liabilities of as much as $470.8
million, including $598.9 million bank borrowings due
within one year. It also posted $349.8 million exceptional
losses and a $128.7 million operating loss.
It also wrote off $127.6 million due to prior period
adjustment, including the overstatement of valuation of
stock and work in progress as well as overstatement of
sales and debtors.
Mr Hsu said United Pacific Industries (UPI), of which he is
also managing director, would continue to support Climax
and Climax's business operations have improved recently,
featuring positive cash inflows. He said Climax has
received a turnaround on the operating side. Last month,
UPI gave Climax a credit facility of about $50 million, of
which about $20 million to $30 million had been drawn by
Climax.
ENG KONG HOLDINGS: Results announcement
---------------------------------------
Container logistics company Eng Kong Holdings yesterday
posted a 62 per cent drop in group net earnings to $1.5
million, thanks to a poor operating environment.
Despite that, however, the Sesdaq-listed company proposed a
1-for-5 bonus issue to reward loyal shareholders.
Turnover for the year ended June 30 rose 15 per cent to
$42.5 million but only because of contribution from newly-
acquired subsidiaries. Otherwise, turnover would have
fallen 17.2 per cent to $30.7 million.
GRANDMART SUPERMARKET: Bias fears spark challenge
-------------------------------------------------
According to the SCMP, fears of bias have sparked a court
challenge to the appointment of Coopers & Lybrand as
provisional liquidators of supermarket chain GrandMart.
Three creditors - Yip Ming-fai, Grandite Development and
Onwork Investment - oppose the appointment on the basis
that a partner in solicitors Richards Butler, the firm
advising Coopers & Lybrand, has a major stake in the
company - Grandfield - which solely owned GrandMart
Warehouse Club.
Barrister Winnie Tam said the point in issue was a
"possibility of bias" and it would be up to the court to
decide whether there is a question of bias. She said a
background dispute between the two parties had left her
clients feeling very uncomfortable about the provisional
liquidators calling the first creditors' meeting. The
provisional liquidators seemed to have been approached by
the other camp. She also said the provisional liquidators
had been appointed ex parte with "next to no notice" to her
clients. The judge said this would be to deal with
perishable stock as soon as possible, but Ms Tam said the
electricity supply was cut off some time last month, weeks
before the provisional liquidators were appointed.
The case was scheduled for a routine hearing yesterday, but
because of the point over the desirability of the
provisional liquidators, it was adjourned for a full
argument to be heard tomorrow.
GrandMart shut its seven branches last month abruptly,
axing 170 staff without pay or redundancy packages. About
90 full-time staff sought help from the Labour Department
and made a claim for unpaid wages, severance pay and pay in
lieu of notice, estimated to amount to more than $10
million.
NOBLE GROUP: Results announcement
---------------------------------
Hongkong-based Noble Group, which was listed in
Singapore only last year, has plunged into the red with
losses of US$8.9 million (S$15.1 million) for the half year
ended June 30.
The commodity transportation provider attributed the net
loss to exceptional provisions of US$9 million taken mainly
for doubtful accounts which it had charged against its
earnings.
At half time, Noble's turnover fell 30 per cent to US$330.6
million and profit slumped 66 per cent prior to exceptional
provisions. This is "not unreasonable given the external
economic conditions," the group said.
WHARF HOLDINGS: S&P takes Wharf off watch list
----------------------------------------------
According to the SCMP and the Hong Kong Standard, Standard
& Poor's yesterday affirmed the BBB-plus long-term
corporate credit rating of Wharf Holdings, while removing
it from CreditWatch. But the agency said the outlook on
Wharf's rating was negative.
The affirmation takes into account the large recurring
investment activities and terminal and warehousing
operations, both of which had shown an above average
capacity to weather current economic difficulties.
The affirmation anticipated Wharf's total debt to capital
would stay below 30 per cent for the next two years. S&P
said it also reflected management's heightened commitment
to scaling back on capital spending.
However, the agency warned that falling asset values could
continue to have an impact on Wharf's gearing.
=================
I N D O N E S I A
=================
SALIM GROUP: Speculation on asset-for-debt deal
-----------------------------------------------
A news analysis in the Singapore BusinessTimes speculates
on the Salim Group's repayment of its Bank Central Asia
(BCA) debt through the surrender of stakes in 102
companies. The deal raises many questions, analysts said,
first among them whether the government is getting its
money's worth given the difficulty of valuing companies in
the current business environment.
On a political level, the questions centre on whether
there's more than meets the eye to what appears to be a
straightforward asset-for-debt deal, particularly as Salim
had close ties with former president Suharto.
Some analysts see the Salim Group's repayment mechanism as
a means to preserve the basic structure of a conglomerate
that is unable to pay hard cash for its debts. In
preserving the viability of Salim, the mechanism by
extension is seen by some as a means to preserve the
alleged wealth and influence of the former president, his
family and his associates.
=========
J A P A N
=========
ASCII CORPORATION: IBJ agrees to bail-out plan for Ascii
--------------------------------------------------------
The Nihon Keizai newspaper reports Industrial Bank of Japan
and six other major banks will help Ascii Corp. restructure
its business, bank officials said Monday. The seven banks
will accept a private placement of 20 billion yen worth of
five-year unsecured convertible bonds from the software
developer, equivalent to slightly more than 70% of its
total debt to the banks. The bonds will have a conversion
price of 1,400 yen, with a coupon rate of 1.5%.
For the year ended March, Ascii recorded liabilities 13.24
billion yen in excess of assets. It currently owes 26.4
billion yen to the seven banks. The 6.4 billion yen in debt
remaining after the bond issuance will be rescheduled for
repayment over five years, and Ascii is asking 18 other
financial institutions to reschedule smaller debts.
Industry analysts expect Ascii to have difficulty writing
off all liabilities in excess of assets on its own before
the end of March 2000, when it is to be deregistered from
the over-the-counter market. Some analysts believe the firm
may ask the CSK group for additional financial support, or
merge with another group firm.
DAIEI INC: Results announcement
-------------------------------
Bloomberg reports Daiei Inc., Japan's largest supermarket
operator, posted a net loss of 900 million yen in the
first-half ended August, reversing a net profit of 1.5
billion yen a year earlier. It was hurt by 22.5 billion yen
in one-off losses including 2.7 billion yen to close a
discount shop outlet in Tokyo's Shinagawa ward, Nikkei
English News reported.
JAPAN LEASING: Details on Tokyo's biggest post-war flop
-------------------------------------------------------
According to the Hong Kong Standard, an affiliate of the
troubled Long Term Credit Bank, Japan Leasing, the
country's second largest leasing firm, said it filed for
rehabilitation at the Tokyo District Court late on Sunday
with liabilities worth 2,180 billion yen. The firm's
president Hiroaki Okamoto told a news conference that the
company had lost the prospect of gaining agreements from
creditor banks for its restructuring plans and could not
thrive on its own.
The company fell victim to the collapse of the speculative
investment boom of the late 1980s and the crisis at LTCB.
The failure eclipses the 1,187 billion yen in liabilities
left by Crown Leasing which went under in April last year
along with two other leasing firms affiliated to Nippon
Credit Bank.
Financial sources said Japan's biggest-ever bankruptcy,
filed by Japan Leasing, triggered a series of loan-loss
warnings by major creditor banks on Monday, raising fears
about the financial health of small lenders. Some small-
sized agricultural credit unions and life insurers may fall
into the red in their interim earnings as they must dispose
of losses on loans made to Japan Leasing within the fiscal
first half year ending Sept 30.
Japan Leasing's failure was in sharp contrast to the
announcement of a deal on key banking bills over the
weekend by ruling and opposition lawmakers who blocked the
LTCB's earlier decision to write off loans to its
affiliates. In a drastic reform plan announced last month,
LTCB said it would bail out the three major affiliates
including Japan Leasing by writing off 520 billion yen in
loans extended to them. But on Friday, the government said
it would not finance the bank's offer of support to three
of its struggling affiliates.
JAPAN LEASING AUTO: Collapses with 126 bil. yen debts
-----------------------------------------------------
Kyodo News reports Japan Leasing Auto Corp., a wholly owned
subsidiary of collapsed nonbank Japan Leasing Corp., said
Tuesday it has filed for court protection from its
creditors on liabilities of some 125.9 billion yen.
Japan Leasing Auto, which leases automobiles, filed the
request Monday night with the Tokyo District Court under
the Corporation Rehabilitation Law, a company official
said.
LONGCHAMP COMPANY: Files for bankruptcy
---------------------------------------
Bloomberg reports Longchamp Company, a Kyoto maker of
textiles, filed for bankruptcy protection with total
liabilities of 7.4 billion yen.
LONG TERM CREDIT: Shares fall to all-time low
---------------------------------------------
The Nihon Keizai newspaper reports Long-Term Credit Bank of
Japan stock on Monday sank to a record low 13 yen on the
Tokyo Stock Exchange, 11 yen below Friday's close, and a
full 5 yen below the previous low set on Sept. 18.
The plunge came in the wake of a political decision to put
LTCB under temporary state control. Under these
circumstances, uncertainty over the government-mandated
price for taking over the ailing bank drove investors,
mainly individuals, to dump the stock after the opening,
said an analyst at Daiwa Securities Co.
LONG TERM CREDIT: Sumitomo Trust to continue merger talks
---------------------------------------------------------
The Nihon Keizai newspaper reports Sumitomo Trust & Banking
Co. reconfirmed Monday it will continue talks on a planned
merger with ailing Long-Term Credit Bank of Japan.
The announcement came after a meeting of Sumitomo Trust
directors. Bank officials said, however, Sumitomo Trust
will closely monitor Diet progress on banking reform
legislation and other developments before deciding its
stance for the near future.
Sumitomo Trust's board approved consideration of a merger
with LTCB at a meeting on July 24. But various
developments, including the government's shift in plans
from a bailout using tax revenue to nationalization of
LTCB, have prompted concern the merger talks are
unraveling.
NIPPON ENTERPRISE: May follow Japan Leasing
-------------------------------------------
The imminent closure of Japan Leasing leaves the other two
affiliates, Nippon Landic and Nippon Enterprise Development
vulnerable. Industry sources were quoted by Kyodo News as
saying that the two affiliates were increasingly likely to
be liquidated following the collapse of Japan Leasing. The
sources said the bankruptcy would prompt creditors to the
two affiliates to recollect loans before they become
irrecoverable.
NIPPON LANDIC: May follow Japan Leasing
---------------------------------------
The imminent closure of Japan Leasing leaves the other two
affiliates, Nippon Landic and Nippon Enterprise Development
vulnerable. Industry sources were quoted by Kyodo News as
saying that the two affiliates were increasingly likely to
be liquidated following the collapse of Japan Leasing. The
sources said the bankruptcy would prompt creditors to the
two affiliates to recollect loans before they become
irrecoverable.
RICOH COMPANY: Holds 413,360 Japan Leasing shares
-------------------------------------------------
Dow Jones reports Ricoh Co. said Monday it owns 413,360
shares in the failed Japan Leasing Corp. with a book value
of 3.67 billion yen. Japan Leasing, a nonbank affiliate of
troubled Long-Term Credit Bank of Japan, said Monday it
sought court protection under Japan's bankruptcy laws with
debts of 2.180 trillion yen, the largest liabilities among
corporate bankruptcies in the postwar period. Ricoh said
that in the first half of the fiscal year ending Wednesday
it will post a valuation loss on its Japan Leasing shares.
TDK CORP: To post 8 bln yen loss from Russia default
----------------------------------------------------
The Nihon Keizai newspaper reports TDK Corp. said Monday it
will post an extraordinary loss of some 8 billion yen for
the six months through September to cover red ink on its
Russian bond holdings, which were scheduled to mature the
same day.
The total book value of TDK's Russian bonds is about 16.31
billion yen. The company has already secured money needed
to cover the loss by realizing profits on its securities
assets. TDK stands by its estimate of a 15% year-on-year
decline in net profit to 13.5 billion yen for the fiscal
first half.
=========
K O R E A
=========
DONGBANG PEREGRINE SECURITIES: Ordered to close by FSC
------------------------------------------------------
The Korea Herald reported that the Financial Supervisory
Commission (FSC) has issued closure orders to KLB
Securities and Dongbang Peregrine Securities. This
announcement is the outcome of a three month evaluation
of four troubled security firms' self rehabilitation plans.
In August, the FSC found that the Dongbang Peregrine
Securities Company had an operating capital ratio of minus
73.9 percent, and hence was required to submit a
rehabilitation plan outlining how it planned to meet
a 150 percent capital adequacy requirement and a 100
percent asset-to-debt ratio. The plan presented by
Dongbang Peregrine was not approved by the FSC reportedly
because of uncertain prospects of its asset sales, rights
issues, and subordinate bond issues. The Korea Herald
earlier reported that this plan called for the company to
raise 35 billion won ($26.5 million) by issuing subordinate
bonds and making additional rights issues.
KLB Securities is a subsidiary of the Korea Long-Term
Credit Bank (KLB), which recently announced merger plans
with Kookmin Bank. KLB Securities was reported to have an
operating capital ratio of minus 4.8 percent last August.
Regulators were cited as believing that efforts to rescue
KLB Securities would have worked against the financial
health of the newly merged bank.
KLB SECURITIES: Ordered to close by FSC
---------------------------------------
The Korea Herald reported that the Financial Supervisory
Commission (FSC) has issued closure orders to KLB
Securities and Dongbang Peregrine Securities. This
announcement is the outcome of a three month evaluation
of four troubled security firms' self rehabilitation plans.
In August, the FSC found that the Dongbang Peregrine
Securities Company had an operating capital ratio of minus
73.9 percent, and hence was required to submit a
rehabilitation plan outlining how it planned to meet
a 150 percent capital adequacy requirement and a 100
percent asset-to-debt ratio. The plan presented by
Dongbang Peregrine was not approved by the FSC reportedly
because of uncertain prospects of its asset sales, rights
issues, and subordinate bond issues. The Korea Herald
earlier reported that this plan called for the company to
raise 35 billion won ($26.5 million) by issuing subordinate
bonds and making additional rights issues.
KLB Securities is a subsidiary of the Korea Long-Term
Credit Bank (KLB), which recently announced merger plans
with Kookmin Bank. KLB Securities was reported to have an
operating capital ratio of minus 4.8 percent last August.
Regulators were cited as believing that efforts to rescue
KLB Securities would have worked against the financial
health of the newly merged bank.
KIA MOTORS: Ford not impressed with third auction
-------------------------------------------------
According to the SCMP and the Hong Kong Standard, South
Korea's president has pledged a fresh auction of Kia Motors
after US car giant Ford Motor withdrew from the previous
attempt to see-off the debt-laden Korean firm. He said
yesterday that a third auction will be held to sell Kia and
various steps are being considered to prevent its collapse.
However, he declined to comment on reports that the
government had agreed to approve additional write-offs of
debts. Newspapers said the proposed total scale of debt
write-offs would be more than four trillion won.
According to the Hong Kong Standard, analysts called for
additional debt write-offs to draw Ford into the race but
Ford chief executive officer Jack Nasser expressed
skepticism, saying the US firm does not want to swap cash
for debt.
South Korean officials put Kia's debts at about 11.8
trillion won and assets at 5.6 trillion won. But industry
analysts now estimate Kia's total debts to be closer to 15
to 16 trillion won.
HANGDO COMPREHENSIVE FINANCING: Firm is insolvent
-------------------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Hangdo Comprehensive Financing
Company went insolvent. The creditors have until November
30, 1998 to file their claims. The company's address is
857-2 Peomcheon-dong, Pusanjin-gu, Pusan and the president
is Mr. Chung Chul-seop.
HANSOL COMPREHENSIVE FINANCING: Firm in bankruptcy
--------------------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Hansol Comprehensive Financing Co.
went insolvent. The creditors have until November 30, 1998
to file their claims. The company's address is 18 Tongkwang
2-ga, Chung-gu, Pusan and the presidents are Mr. Chung
Chul-seop and Hwang Jin-ho.
KORYO COMPREHENSIVE FINANCING: Firm is insolvent
------------------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Koryo Comprehensive Financing
Company went insolvent. The creditors have until November
30, 1998 to file their claims. The company's address is 50
Chungang-dong 5-ga, Chung-gu, Pusan and the president is
Mr. Park Kwon-byong.
SK GROUP: Affiliate calls in loans from sister companies
--------------------------------------------------------
A front page story in the Asian Wall Street Journal reports
SK Telecom Company has called back 300 billion won ($216.4
million) in loans it made to affiliates of the SK Group.
SK is Korea's fifth largest conglomerate (or chaebol).
Additionally, its affiliate SK Telecom Co. has three
independent directors who were named to its board of
directors this last March by a US-based hedge fund group
which held a 7 percent share of the company at the time.
According to the report, the independent directors had
threatened to call a shareholders' meeting and recommend
the removal of the company management if the loans were not
recalled.
SK's senior management agreed to demand repayment of 235
billion won in short-term commercial paper purchased from
SK Engineering & Construction Company and SK Shipping
Company. These loans should be retired this week, even
though some of them do not expire until early to mid-
October.
Another 65 billion won being held in "special trust
account" (wherein a company places a deposit in a bank and
arranges for the bank to make a loan to an affiliate
company) is now guaranteed to be returned in 1999. It is
not clear how SK Construction and Shipping will repay the
loans, but it was suggested that other SK Group affiliates
could finance the repayment either with cash or by
additional borrowings.
===============
M A L A Y S I A
===============
FOURSEA CONSTRUCTION (M) SDN BHD: Winding-up petition
-----------------------------------------------------
Wing Tiek Holdings Bhd (listed on the KLSE), on 23/9/98
petitioned for the winding up of Foursea Construction (M)
Sdn Bhd.
LION TECK CHIANG: Results announcement
--------------------------------------
Mainboard-listed Lion Teck Chiang has plunged into the red
with a net loss of $9.02 million for the year ended June 30
after making a provision of $10.3 million for its property
investments. The loss compared to a net profit of $19.21
million in the previous year.
The net loss of $9.02 million came after the provision and
extraordinary loss of $1.54 million for diminution in value
of long-term investments. Group turnover fell by 19.13 per
cent to $150.7 million while at the operating level, a loss
of $4.84 million was sustained against a profit of $5.48
million previously.
SYARIKAT ZASABINA SDN BHD: Winding-up petition
----------------------------------------------
Pengkalen Concrete Sdn Bhd on 17/8/98 petitioned for the
winding-up of Syarikat Zasabina Sdn Bhd. The petition is
directed to be heard on 15/10/98.
TAXI VENTURES & HOLDINGS SDN BHD: Voluntary winding up
------------------------------------------------------
The members of Taxi Ventures & Holdings Sdn Bhd on 22/9/98
petitioned for the voluntary winding-up of the company.
Creditors of the company are requested to submit their
claims before 21/10/98.
TELEKOM MALAYSIA: Unperturbed by loan exposure
----------------------------------------------
The New Straits Times reports Telekom Malaysia Bhd is
unperturbed about its loan exposure as most of the funds
raised were used for long-term overseas investments, chief
executive Datuk Mohamed Said Mohamed Ali said yesterday.
He said the company was not facing any problem servicing
loans as most of the loan tenure was between four and five
years, by which time all overseas investments would be
making contributions to the group's profit.
Telekom Malaysia has projected that overseas investments
will contribute 20 per cent to the group's profit by 2001.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: PAL to fly again as union deal struck
----------------------------------------------------------
According to the SCMP and the Hong Kong Standard, signals
emerged yesterday that debt-ridden PAL could fly again next
Wednesday after unions backed down in their stand-off with
management. Philippines president Joseph Estrada said the
union had now agreed to a 10-year moratorium on strikes and
a freeze on collective bargaining in exchange for a 20 per
cent equities in the airline and four seats on the board.
After PAL closed on Wednesday, Cathay Pacific took over
domestic flights from PAL yesterday after Mr Estrada
invited it to do so. According to the SCMP, Cathay is
operating six flights a day: four between Manila and
Cebu and two between Manila and Davao. The services are
chartered by investment firm Philippine National Bank
Holdings. Some analysts estimate the deal could be worth
more than $30 million a month. Cathay last night declined
to comment on the possible loss of the business opportunity
saying it is supposed to be a temporary arrangement to help
ease problems in the Philippines.
According to the Hong Kong Standard, PAL is resuming
operations from Oct 7 and sources in Cathay said the
airline was still interested in buying a stake from PAL's
majority shareholder Mr Lucio Tan but said there were no
formal talks yet on Cathay infusing capital into PAL.
===============
T H A I L A N D
===============
BANGCHAK PETROLEUM PCL: Results announcement
--------------------------------------------
Bangchak Petroleum Public Company Limited reports results
for the second quarter ending June 30, 1998 as a net loss
of Bt376 million, which compares to a net profit of Bt114
million for the corresponding 1997 period.
BANPU PCL: Capital increase plan
--------------------------------
Banpu Public Company Limited has decided to suspend a
payment of annual dividend for the 12-month period from
1 July 1997 to 30 June 1998 due to its single realisation
of foreign exchange loss.
The company has also announced that it will reduce its
registered capital from Baht 1,000 million to Baht 642.5
million by cancellation an aggregate number of 35.75
unissued/unallocated shares. In addition, Banpu plans to
increase the capital and allocate new shares. Registered
capital will increase from Bt642 million to Bt1.22 billion.
CP POKPHAND: Results announcement
---------------------------------
According to the SCMP, Thai-based conglomerate CP Pokphand
has reported a disappointing US$17.1 million in
attributable losses for the six months to June, down from
the previous $12.2 million profit. Turnover for the period
declined 5.9 per cent to $830.7 million. Loss per share was
0.793 cents, compared with the previous per share earning
of 0.565 cents. No interim dividend will be paid.
RAIMON LAND PCL: Debenture holders will not be paid
---------------------------------------------------
Raimon Land PCL Debenture has informed the SET that it
cannot repay the principle and interest due to debenture
holders. Efforts are continuing on the financial
restructuring of the company. These efforts are being
hampered by the uncertainty surrounding the of company debt
due to be auctioned by the FRA in December 1998.
In addition the closure and Government takeover of other
financial institutions with whom the company has
outstanding loans is causing delays in restructuring
negotiations. It is envisaged that a financial
restructuring proposal will be presented to the company's
creditors within the next three months.
SAMART CORPORATION: Shuts down three ailing units
-------------------------------------------------
The Nation reports Samart Corporation Plc (Samart) has
closed three unprofitable subsidiaries -- Samart Satcom Co
Ltd, Samart Print Circuit Co Ltd and Samart Computer Co
Ltd.
The closure was delayed from the beginning of the year by
legal issues, Samart vice president Tom Kreusopon said
Monday.
With the closure of the three companies, which marks the
completion of the group's restructuring, 20 subsidiaries
and 1,500 workers remain, compared to the previous 26
subsidiaries and 2,000 workers.
SIAM SYNTEC CONSTRUCTION: Faces possible delisting
--------------------------------------------------
The SET has announced Siam Syntec Construction Public
Company Limited (SYNTEC) has submitted its audited
financial statements for the year ended June 30, 1998,
which show shareholders' equity (capital deficit) of
(2,639.61) million baht.
In addition the company's auditor has also presented the
qualified financial statements that the value of the works
performed on several construction projects of the company
and its subsidiaries which the developers have experienced
financial difficulties and delayed payments for
constructions services have the amount of Baht 1,335
million.
Moreover, the company and its subsidiaries have shown its
allowance for doubtful accounts of Baht 549 million. There
were deposits for purchases of material of Baht 240 million
but their recoverability of these deposits is uncertain. If
so, after the SET has adjusted its shareholders' equity in
accordance with the auditor's opinion, the company's
shareholders' equity will be lower. As a result, the
company is facing possible delisting.
Therefore, the Exchange will transfer SYNTEC to a new
category for listed companies so called Companies Under
Rehabilitation (REHABCO) on 5 October 1998 and the Exchange
will suspend its securities for 30 days from the date of
announcement to 28 October 1998.
The SET will require the company to appoint an independent
financial advisor to prepare a rehabilitation plan to solve
the causes of delisting. The company must also appoint a
financial advisor to jointly prepare a rehabilitation plan
to propose to its shareholders within 4 mounts of the
date of notice-received of by 28 January, 1999.
SUPALAI PCL: Results announcement
---------------------------------
Supalai PCL reports second quarter results for the period
ending June 30, 1998 as a net loss of Bt246 million, which
compares to a loss of Bt26 million for the corresponding
1997 period.
THAI T&T: Moves for debt restructuring
--------------------------------------
The Nation reports Thai Telephone & Telecommunication Plc
(TT&T) has taken the first steps towards restructuring its
debt by contracting Price Waterhouse Coopers to do the job.
The move comes at the recommendation of its creditors, who
play a highly influential role in selecting advisers, a
TT&T source said.
TT&T, the largest fixed-line phone company in Thailand's
rural areas, is struggling under the weight of about 55
billion baht (US$1.41 billion) in debts, which are largely
financed by Ericsson and Alcatel, its two main equipment
suppliers.
Several banking creditors stopped providing credit to TT&T
in 1996, which has made it virtually impossible for the
company to pay back the equipment suppliers. However,
Ericsson and Alcatel have thus far made no complaints about
the unpaid money.
In light of its burgeoning cash flow problems, TT&T has
been paying creditors only a portion of the interest on its
loans, and has been delaying principle payments since the
middle of this year.
UNION ASIA FINANCE: SEC approves suspension of business
-------------------------------------------------------
The Securities and Exchange Commission has approved Union
Asia Finance Public Company Limited to suspend its
securities business since 1st October 1998. The company
already informed all customers who have securities
deposited in the company to sell their securities or
transfer to other securities companies within this
September.
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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forwarding, electronic re-mailing and photocopying) is
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