---

T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Monday, October 5, 1998, Vol. 1, No. 157

                    Headlines


* C H I N A   &   H O N G   K O N G *

BAD YEUNG COLOR LAB LIMITED: Notice of creditors' meeting
CARNABY GARMENT MANUFACTURING: Notice of creditors' meeting
L.K. HOLDINGS LIMITED: Winding-up petition
LAND & SKY WORLDWIDE HOLDINGS LIMITED: Winding-up petition
LO'S (HT) ENGINEERING COMPANY: Notice of creditors' meeting

PEREGRINE EQUITY CAPITAL: Notice of creditors' meeting
ROCKWATER UNDERWATER SERVICES: Notice to creditors to claim
STIME WATCH: Winding-up petition
SUNTAT FINANCE LIMITED: Notice of creditors' meeting


* I N D O N E S I A *

BANK ANDROMEDA: Police probe Suharto son in credit scam


* J A P A N *

DAIDO SIGNAL: Reverses earnings forecast
FUJI KIKO: Reverses earnings forecast
HOKKAIDO RAILWAY: Revised plan to cut debt
JAPAN FREIGHT RAILWAY: Revised plan to cut debt
JAPAN LEASING CORP: Should not affect banks' ratings

KYUSHU RAILWAY: Revised plan to cut debt
LONG TERM CREDIT BANK: LTCB rescue loans in pipeline
LONG TERM CREDIT: Opts not to dissolve 2 nonbank affiliates
MATSUSHITA ELECTRIC: Reverses earnings forecast
MITSUBISHI MATERIALS: Reverses earnings forecast

MITSUI TRUST: Writes off Y170 billion in bad loans
MYCAL CORP: Reveals net loss
NISSAN MOTOR: To post pretax loss
NITTO KOHKI: Shares fall on earnings report
SAKURA BANK: Seeks ways to increase creditworthiness

SANYO ELECTRIC: Midterm profit likely to fall 27%
SHIKOKU RAILWAY: Revised plan to cut debt
SUMITOMO BANK: Citibank provides $600 for Japanese bank
TESCON: OTC firm Tescon fails to honour bills


* K O R E A *

IKSAN COMPANY: Bankrupt company's trade suspended
KIA MOTORS: Kia sale thrown open to highest bidder
SANGJIN COMPANY: Completes creditor reconciliation
SHINSEGAE DEPARTMENT STORE: Shinsegae won't give back pay
TONGSUNG CONSTRUCTION: Applies for creditor reconciliation


* M A L A Y S I A *

ALUMINIUM COMPANY OF MALAYSIA BHD: Results announcement
LOKE YEW MINES BHD: Voluntary winding up
MACROFARM (MALAYSIA) SDN BHD: Winding-up petition
MAY PLASTICS INDUSTRIES BHD: Rating downgraded
NALURI BHD: Results announcement

PERNAS INTERNATIONAL HOLDINGS BHD (PIHP): Bonds downgraded
RENONG BHD: Results announcement
TENAGA NASIONAL: Tenaga strikes deal with IPPs


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

PHILIPPINE AIRLINES: Key vote as PAL looks for saviour


* S I N G A P O R E *

BROADWAY INDUSTRIAL: Secures standstill letter
IPC CORP: Debts see IPC on brink of collapse
NATIONAL KAP: Results announcement


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

BAD YEUNG COLOR LAB LIMITED: Notice of creditors' meeting
---------------------------------------------------------
A meeting of creditors of BAD YEUNG COLOR LAB LIMITED will
be held at 37/F., Hennessy Centre, 500 Hennessy Road,
Causeway Bay, Hong Kong on Oct 16 at 11:00 am. Notice
issued by Yeung Yuk Ching, for and on behalf of the board.


CARNABY GARMENT MANUFACTURING: Notice of creditors' meeting
-----------------------------------------------------------
A meeting of creditors of CARNABY GARMENT MANUFACTRING
COMPANY LIMITED will be held at the Officaial Receiver's
office, 10th Floor, Queensway Government Offices, 66
Queensway, Hong Kong on Oct 15 at 10:00 am to be followed
by a meeting of contributories at 11:00 am.


L.K. HOLDINGS LIMITED: Winding-up petition
------------------------------------------
A petition for the winding up of L.K. HOLDINGS LIMITED was
presented to the High Court on Sept 8 by The Hongkong and
Shanghai Banking Corporation whose registered address is
situate at No. 1, Queen's Road Central, Hong Kong, and the
said petition is directed to be heard before the court at
11:00 am on Oct 14, and any creditor or contributory of the
said company desirous to support or oppose the making of an
order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by the
Solicitors for the Petitioner, Johnson Stokes & Master,
18th
Floor, Prince's Building, 10 Chater Road, Central, Hong
Kong on payment of the regulated charges for the same.


LAND & SKY WORLDWIDE HOLDINGS LIMITED: Winding-up petition
----------------------------------------------------------
A petition for the winding up of LAND & SKY WORLDWIDE
HOLDINGS LIMITED was presented to the High Court on Sept 4
by Livasiri & Co of 7th and 19th Floors, No. 9 Des Voeux
Road
West, Hong Kong, and the said petition is directed to be
heard before the court at 9:30 am on Oct 14, and any
creditor or contributory of the said company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by the Petitioner, Livasiri
& Co. on payment of the regulated charges for the same.


LO'S (HT) ENGINEERING COMPANY: Notice of creditors' meeting
-----------------------------------------------------------
A meeting of creditors of LO'S (HT) ENGINEERING COMPANY
LIMITED will be held at Room 2008, Empire Hotel, 33
Hennessy Road, Wanchai, Hong Kong on Oct 7 at 11:00 am to
appoint liquidators and to consider further matters
relevant to the creditor's voluntary winding-up of the
company. Proxies must be lodged at Room 1718, Park In
Commercial Centre, 56 Dundas Street, Mong Kok, Kowloon not
later than 24 hours before the time appointed for the
holding of the meeting. Notice issued by Lo Hing Tang,
Director.


PEREGRINE EQUITY CAPITAL: Notice of creditors' meeting
------------------------------------------------------
A meeting of creditors of PEREGRINE EQUITY CAPITAL MARKETS
LIMITED will be held at 27/F., Island Place Tower, 510
King's Road, North Point, Hong Kong on Oct 7 at 11:00 am
when the following resolution will be proposed as an
extraordinary resolution: "that the company do wind up and
dissolve on the ground that by reason of its liabilities it
cannot continue in business and Mr David Richard Hague and
Donald Edward Osborn of Price Waterhouse, 20th Floor,
Prince's Building, Hong Kong  be appointed as Joint and
Several Liquidators of the Company for the purpose of
winding up its affairs."


ROCKWATER UNDERWATER SERVICES: Notice to creditors to claim
-----------------------------------------------------------
The creditors of ROCKWATER UNDERWATER SERVICES LTD. , which
is being voluntarily wound up, are required on or before
Oct 15 to send in their names, addresses and particulars of
their debts or claims to the Liquidators of the said
company at 21st Floor, Wing On Centre, 111 Connaught Road
Central, Hong Kong, and if so required by notice in writing
from the liquidators, are personally or by their solicitors
to come in and prove their debts or claims at such time and
place specified in such notice, or in default thereof, they
will be excluded from the benefit of any distribution
declared before such debts are proved.


STIME WATCH: Winding-up petition
--------------------------------
A petition for the winding up of STIME WATCH INTERNATIONAL
HOLDING LIMITED  was presented to the High Court on Sept 4
by Anglo Chinese Corporate Finance Limited whose registered
address is situate at 20th Floor, Alexandra House, Chater
Road, Central, Hong Kong, and the said petition is directed
to be heard before the court at 9:30 am on Oct 14, and any
creditor or contributory of the said company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by the Solicitors for the
Petitioner, Allen & Overy, 9th Floor, three Exchange
Square,
Central, Hong Kong on payment of the regulated charges for
the same.


SUNTAT FINANCE LIMITED: Notice of creditors' meeting
----------------------------------------------------
A final meeting of the creditors of SUNTAT FINANCE LIMITED
will be held at Room 2109, China Resources Building, 26
Harbour Road, Wanchai, Hong Kong on Oct 8 at 10:30 am.   
Notice issued by Ng Chee Ming, by order of the board.


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

BANK ANDROMEDA: Police probe Suharto son in credit scam
-------------------------------------------------------
Reuters reports Indonesian police said today that one of
former President Suharto's sons had officially been
declared a suspect in a probe into alleged financial
irregularities at a now-defunct bank. Bambang Trihatmodjo,
Suharto's second son, arrived at the national police
headquarters in Jakarta for questioning on Friday
afternoon, flanked by three bodyguards.

Police said he was being questioned about alleged
irregularities at Bank Andromeda, in which he held a 25
percent stake. Timber tycoon Prajogo Pangestu, one of
Suharto's closest cronies, held a 50 percent stake.

The bank was shut down in November along with 15 others for
exceeding legal lending limits. Police say their
investigation is focusing on the alleged misuse of
liquidity credit extended to Bank Andromeda by Indonesia's
central bank.


=========
J A P A N
=========

DAIDO SIGNAL: Reverses earnings forecast
----------------------------------------
Bloomberg reports shares of Daido Signal Co. fell 35 yen to
142. The company reversed its previous forecast to a parent
pretax loss of 450 million yen for the half-year ended
Sept. 30. That's 850 percent more than the most recent
forecast by Toyo Keizai Inc., a financial information
company.


FUJI KIKO: Reverses earnings forecast
-------------------------------------
Bloomberg reports shares of Fuji Kiko Co. fell 22 yen to
200. The automobile parts maker reversed its previous
forecast to a parent pretax loss of 800 million yen for the
half-year ended Sept. 30.
That's 45.5 percent more than the most recent forecast by
Toyo Keizai.


HOKKAIDO RAILWAY: Revised plan to cut debt
------------------------------------------
The Nihon Keizai newspaper reports the Japanese government
and ruling Liberal Democratic Party have settled on a plan
that will help four struggling Japan Railways companies
dispose of long-term debt inherited from the old national
railway. Besides lightening the tax burden on fixed assets,
the plan considers offering the railroad companies a total
of 100 billion yen in interest-free lending.

If the plan succeeds, it will pave the way for three of the
railways - Hokkaido Railway Co., Shikoku Railway Co. and
Kyushu Railway Co. - to list on stock exchanges in fiscal
2001. In addition, the plan would help Japan Freight
Railway Co. become profitable.

At issue is what to do with 360 billion yen in additional
debt that was owed by the former Japanese National
Railways. Japan's political parties are split on how to
distribute the burden among the government and the seven
successor privatized railways, but all acknowledge that
some sort of help is necessary for the four weakest
railroads.


JAPAN FREIGHT RAILWAY: Revised plan to cut debt
-----------------------------------------------
The Nihon Keizai newspaper reports the Japanese government
and ruling Liberal Democratic Party have settled on a plan
that will help four struggling Japan Railways companies
dispose of long-term debt inherited from the old national
railway. Besides lightening the tax burden on fixed assets,
the plan considers offering the railroad companies a total
of 100 billion yen in interest-free lending.

If the plan succeeds, it will pave the way for three of the
railways - Hokkaido Railway Co., Shikoku Railway Co. and
Kyushu Railway Co. - to list on stock exchanges in fiscal
2001. In addition, the plan would help Japan Freight
Railway Co. become profitable.

At issue is what to do with 360 billion yen in additional
debt that was owed by the former Japanese National
Railways. Japan's political parties are split on how to
distribute the burden among the government and the seven
successor privatized railways, but all acknowledge that
some sort of help is necessary for the four weakest
railroads.


JAPAN LEASING CORP: Should not affect banks' ratings
----------------------------------------------------
Standard & Poor's CreditWire reports Japan Leasing Corp.'s
bankruptcy, the largest in Japan's history at Y2.3
trillion, should not, by itself, trigger any rating changes
among the domestic banks. However, the eventual losses from
those exposures, coupled with deteriorating customer
credits, and the depressed stock market, will further
pressure the banks' already diminished financial resources,
making the current rating levels vulnerable.


KYUSHU RAILWAY: Revised plan to cut debt
----------------------------------------
The Nihon Keizai newspaper reports the Japanese government
and ruling Liberal Democratic Party have settled on a plan
that will help four struggling Japan Railways companies
dispose of long-term debt inherited from the old national
railway. Besides lightening the tax burden on fixed assets,
the plan considers offering the railroad companies a total
of 100 billion yen in interest-free lending.

If the plan succeeds, it will pave the way for three of the
railways - Hokkaido Railway Co., Shikoku Railway Co. and
Kyushu Railway Co. - to list on stock exchanges in fiscal
2001. In addition, the plan would help Japan Freight
Railway Co. become profitable.

At issue is what to do with 360 billion yen in additional
debt that was owed by the former Japanese National
Railways. Japan's political parties are split on how to
distribute the burden among the government and the seven
successor privatized railways, but all acknowledge that
some sort of help is necessary for the four weakest
railroads.


LONG TERM CREDIT BANK: LTCB rescue loans in pipeline
----------------------------------------------------
According to the Hong Kong Standard, the Mainichi Shimbun
said yesterday that Japan's central bank will extend
unlimited loans to the ailing Long Term Credit Bank
beginning this week to keep the bank afloat until it is
nationalised. The Bank of Japan will give several hundred
billion yen in unsecured loans at the start and continue to
provide necessary funds until LTCB is nationalised under
new bank reforms agreed by lawmakers earlier this week. The
paper said the Bank of Japan's policy board will soon agree
the move.


LONG TERM CREDIT: Opts not to dissolve 2 nonbank affiliates
-----------------------------------------------------------
The Nihon Keizai newspaper reports Long-Term Credit Bank of
Japan has decided not to dissolve two of its three debt-
laden nonbank affiliates, at least for the time being.
Instead it plans to restructure Nippon Enterprises
Development Corp. and Japan Landic Corp. after talking with
their banks.

The move follows comments by Chief Cabinet Secretary Hiromu
Nonaka last Friday that he does not intend to permit LTCB
to waive the full amount of loans it has made to the three
affiliates. LTCB will record some 270 billion yen in loan
loss reserves for the two companies in the fiscal first
half ended Wednesday. The other nonbank affiliate, Japan
Leasing Corp., filed for protection from its creditors
Sunday in Japan's largest-ever corporate bankruptcy.

LTCB says the two remaining affiliates have links with a
much smaller number of financial institutions than Japan
Leasing, and therefore will have an easier time finding
support for the restructuring plan. They also have far
smaller cash flow needs. As a result, LTCB now sees little
need to legally dissolve the two firms.

The bank is also working to reduce the amount of claims
against the affiliates it will waive.

The bank plans to draw up revised restructuring plans as
early as this month, but cautions that it may at a later
date decide to legally dissolve the two affiliates.


MATSUSHITA ELECTRIC: Reverses earnings forecast
-----------------------------------------------
Bloomberg reports shares of Matsushita Electric Industrial
Co. fell 47 yen to 1,773. The world's largest maker of
consumer electronics warned before the market closed that
it would cut its earnings forecast. After the close of the
market, the company cut its half-year net profit forecast
73 percent to 8 billion yen.


MITSUBISHI MATERIALS: Reverses earnings forecast
------------------------------------------------
Bloomberg reports shares of Mitsubishi Materials Corp. fell
1 yen to 229. The nonferrous metal maker is likely to
report a net loss of 10 billion yen for the half-year ended
Sept. 30, compared with a net profit of 4.3 billion yen for
the same period last year, the Nihon Keizai newspaper said,
without citing sources. The company had initially expected
a net profit of 2.5 billion yen. The loss is a result of
valuation losses on its securities holdings.


MITSUI TRUST: Writes off Y170 billion in bad loans
--------------------------------------------------
Bloomberg reports shares of Mitsui Trust & Banking Co. rose
1 yen to 115. The bank decided today to write off about 170
billion yen in bad loans for the half-year ended Sept. 30,
higher than the initial 30 billion yen, to improve its
financial position as quickly as possible, the Nihon Keizai
newspaper reported, citing company sources.


MYCAL CORP: Reveals net loss
----------------------------
Bloomberg reports shares of Mycal Corp. fell 100 yen to 593
after the supermarket operator reported earnings based on
U.S. SEC regulations, revealing that the company actually
recorded a consolidated net loss of 67 billion yen for the
year ended Feb. 28., instead of a net profit of 10.1
billion yen.


NISSAN MOTOR: To post pretax loss
---------------------------------
Bloomberg reports shares of Nissan Motor Co. fell 10 yen to
305. The automaker said it will post a 75.9 billion yen
stock loss for the half-year ended Sept. 30, compared with
60 billion yen it forecast in an interview Tuesday, and
will have to revise its earnings estimate for the half. The
Nihon Keizai newspaper said the automaker will report a
current, or pretax, loss of 20 billion yen for the half-
year because of the stock valuation loss.


NITTO KOHKI: Shares fall on earnings report
-------------------------------------------
Bloomberg reports shares of Nitto Kohki Co. fell 82 to 688
on concern about the earnings of the maker of machine tools
after it cut its first-half current, or pretax, profit
forecast 90.6 percent to 150 million yen.


SAKURA BANK: Seeks ways to increase creditworthiness
----------------------------------------------------
Reuters reports Sakura Bank Ltd is racing against time and
a tumbling share price to convince the market it can clear
up its massive problem loans and compete amid Japan's "Big
Bang" financial deregulation.

Sakura's shares this week slid to their lowest level in
nearly three decades, underlining the urgency of restoring
investor faith in a bank that has been hit by repeated
downgrades of its credit ratings.

Japanese media have reported that Sakura is in talks with
leading German bank Deutsche Bank AG and Kokusai Securities
Co Ltd on an investment trust alliance.

Sakura's search for a way to raise its creditworthiness led
it on Friday to announce it was likely to boost its capital
by about 350 billion yen ($2.61 billion) -- an increase
larger than the 300 billion yen hike it had earlier
planned.


SANYO ELECTRIC: Midterm profit likely to fall 27%
-------------------------------------------------
Sanyo Electric Co.'s consolidated pretax profit in the
fiscal first half is estimated to have come in 27% below
the year-earlier level, at just under 16 billion yen - more
than 4 billion yen short of earlier projections. The Osaka
firm will likely post a 4% drop in consolidated sales for
the period ended Sept. 30, to around 945 billion yen. Group
operating profit is estimated to have plummeted 26%, to
just under 25 billion yen.


SHIKOKU RAILWAY: Revised plan to cut debt
-----------------------------------------
The Nihon Keizai newspaper reports the Japanese government
and ruling Liberal Democratic Party have settled on a plan
that will help four struggling Japan Railways companies
dispose of long-term debt inherited from the old national
railway. Besides lightening the tax burden on fixed assets,
the plan considers offering the railroad companies a total
of 100 billion yen in interest-free lending.

If the plan succeeds, it will pave the way for three of the
railways - Hokkaido Railway Co., Shikoku Railway Co. and
Kyushu Railway Co. - to list on stock exchanges in fiscal
2001. In addition, the plan would help Japan Freight
Railway Co. become profitable.

At issue is what to do with 360 billion yen in additional
debt that was owed by the former Japanese National
Railways. Japan's political parties are split on how to
distribute the burden among the government and the seven
successor privatized railways, but all acknowledge that
some sort of help is necessary for the four weakest
railroads.


SUMITOMO BANK: Citibank provides $600 for Japanese bank
-------------------------------------------------------
The Wall Street Journal reports Citibank has acknowledged
it is providing a $600 million line of credit for Sumitomo
Bank. Citibank didn't disclose details of the deal, but
said the credit line is available to Sumitomo any time the
huge trading company needs short-term financing. "If
there's a crisis, they've now got assurance they can get
financing," says Citibank vice president Richard Magrann-
Wells. "This is to demonstrate to the markets that they
have no problems raising funds."

Japanese bankers concede privately they are having an
increasingly hard time raising funds - particularly U.S.
dollars - in money markets, thus making it tough to provide
their clients with the sort of dollar financing that
Citibank and its partners are offering Sumitomo.

Moody's Investors Service rates Sumitomo at single-A-2, but
that rating is on review for a possible downgrade. Most big
banks, though, have a rating that is equal or lower.
Citibank's rating is higher at double-A-2.


TESCON: OTC firm Tescon fails to honour bills
---------------------------------------------
According to the Hong Kong Standard, Tescon, a prominent
over-the-counter (OTC) company and a pioneer in making
testing equipment for circuit boards, said yesterday it
failed to honour 114.5 million yen in promissory notes in
September after Fuji Bank acted to recover loans extended
to it at short notice. It was the first time Tescon had
done so. Under Japanese rule, a second such failure would
mean it being suspended from new transactions with banks -
a virtual bankruptcy. Tescon shares were suspended from
trade earlier yesterday.

Shin Mukai, Tescon's senior managing director, said the
company and Fuji Bank had been in talks over a delay in the
firm's interest payment on its borrowings from Fuji
totalling some 297 million yen. But while the talks were
still going on, Fuji moved to recover the loans and seized
all of Tescon's money deposited in its account, with the
notice to recover the loans coming only two days before the
settlement day.

Fuji Bank said it would be hard to extend any further
financial support to Tescon, which had failed to present
substantive plans to repay its borrowings.

Traders took the Tescon news as suggesting a harsher
liquidity crunch faced by companies in Japan, as banks,
saddled with hefty bad loans, moved to scale back their
lending.

One brokerage official in charge of Japanese stock sales
said that Tescon, which had made a profit last business
year, failed to honour the notes and the issues that could
be recommended to investors were disappearing.

Tescon, which has about a 40 per cent market share in
testers for printed circuit boards, predicted in July a
current profit of 880 million yen for the year to March
1999, up from a record profit of 745 million yen a year
earlier. Its financial condition has worsened amid a
global chip market slump.


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

IKSAN COMPANY: Bankrupt company's trade suspended
-------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Korean Stock Exchange has suspended
until October 7, 1998 the trade of the recently bankrupt
Iksan company.


KIA MOTORS: Kia sale thrown open to highest bidder
--------------------------------------------------
According to the SCMP, South Korea has announced the sale
of Kia Motors Corp to the highest bidder. After two failed
auctions, Korea Development Bank (KDB) and other creditors
said they would not fix a ceiling on the amount of Kia debt
they were prepared to forgive.

Ford Motor, General Motors, Samsung Motor, Daewoo Motor and
Hyundai Motor are all in the running to buy Kia and Asia
Motors.

The new format could favour Samsung Group, which wants to
buy Kia to salvage a five trillion won investment in its
own fledgling car subsidiary. Samsung has said it could
link up with Ford to use a manufacturing base in Korea to
expand in Asia.

Korean research head at ABN Amro Asia said that in the new
situation, either a Samsung takeover or a joint Samsung-
Ford would seem the likeliest outcome, with Samsung
bringing in most of the money and Ford bringing in the
technology.

Should Samsung Motors fail to acquire Kia, its own future
could be in the balance as Korea's car industry is
operating at just 40 per cent capacity. The slump could
make it hard for Kia to make a profit for several years,
regardless of the buyer.

According to the Korea Herald, the winner of the auction
will be the bidder offering the lowest amount of debt
write-offs. To prevent the third auction from ending in
failure, a winner will be announced if the difference in
bidding prices exceeds 700 billion won (or $516 million).
If the differences in the bid prices does not surpass 700
billion won, then creditors will consider bidding prices,
financial status, and other conditions to select the
winner.


SANGJIN COMPANY: Completes creditor reconciliation
--------------------------------------------------
The Suwon District Court advertised in the Korean langauge
Maeil Kyungje that the Sangjin Company completed its
creditor reconciliation. The company's address is 292
Chungdae-ri Kwangju-eup Kwangju-gun Kyunggi-do and the
president is Ms. Kim Yong-rim.


SHINSEGAE DEPARTMENT STORE: Shinsegae won't give back pay
---------------------------------------------------------
The Korea Times reports that the Shinsegae Department Store
has tried to force its employees to sign contracts giving
up claims to wages in arrears. A Yonhap News Agency source
was cited as saying that the total amount of overdue wages
amounts to nearly 10 billion won as of the end of
September. However, as department store staff members have
refused to sign the contract and have threatened a
collective protest, Shinsegae annulled the contract for
fear of fomenting further trouble.


TONGSUNG CONSTRUCTION: Applies for creditor reconciliation
----------------------------------------------------------
The Korean language Maeil Kyungje reports that the Tongsung
General Construction Company has applied for a creditor
reconciliation to the Changwon District Court.

The Tongsung General Construction company is one of the
most successful mid-size construction companies in Korea
and has tried to restructure the company by merging with
two other companies, the Hanguk General Construction
Company and the Tongbo Construction Company. However, the
company's main creditor bank, Korea Housing Bank, has been
slow in allowing the company's payment deferment decision.
Thus the company had to apply for a creditor reconciliation
procedure.

Maeil Kyungje noted that both the Hanguk General
Construction Company and the Tongbo Construction Company
have applied for a workout program to the Korea Housing
Bank.


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

ALUMINIUM COMPANY OF MALAYSIA BHD: Results announcement
-------------------------------------------------------
Alcom (listed on the KLSE) posted a pre-tax loss of
RM543,000 for the half year ended 30/6/98, compared to a
pre-tax profit of RM12.99mil. The loss was attributed to
the weaker domestic currency and stiff competition in
extrusion business.


LOKE YEW MINES BHD: Voluntary winding up
----------------------------------------
The members of Loke Yew Mines Bhd on 29/9/98 resolved to
wind up the company voluntarily. Creditors of the company
are requested to submit their claims before 30/10/98.


MACROFARM (MALAYSIA) SDN BHD: Winding-up petition
-------------------------------------------------
Dow Corning Singapore Pte Ltd on 25/9/98 petitioned for the
winding-up of Macrofarm (Malaysia) Sdn Bhd.


MAY PLASTICS INDUSTRIES BHD: Rating downgraded
----------------------------------------------
The Rating Agency Malaysia Bhd downgraded the long term
rating of May Plastics Industries Bhd's (listed on the
KLSE) RM40mil bonds to D, from A1(bg). May Plastics has
been granted a restrain of proceeding under Section 176 of
the Companies Act 1965 on Sept 1, 1998.


NALURI BHD: Results announcement
--------------------------------
Naluri Bhd (listed on the KLSE), formerly known as
Malaysian Helicopter Services Bhd, posted a group pre-tax
loss of RM121.998mil for the half year ended 30/6/98,
compared to a pre-tax profit of RM33.133mil previously.
The loss was attributable to higher interest cost than
before.


PERNAS INTERNATIONAL HOLDINGS BHD (PIHP): Bonds downgraded
----------------------------------------------------------
Pernas International Holdings's RM200mil mortgage bonds and
RM280mil secured bonds were downgraded by Rating Agency
Malaysia Bhd, from AA3(s) to A3(s).

The lower rating reflects the group's weaker financial
position greater debt level and dependence on short-term
floating rate debt.

The performance of its hotel and investment property
divisions were affected by the economic turmoil and its
cash flow further weakened by interest burden.

PIHP's restructuring of its short term facilities with a
proposed issue of convertible preference shares to a new
investor, backed by unencumbered hotel assets, may help to
ease the tight short-term liquidity problem.


RENONG BHD: Results announcement
--------------------------------
Renong Bhd. recorded a surprisingly large pretax loss for
its latest fiscal year, and said the regional financial
crisis was to blame. The company posted a loss before taxes
of 818 million ringgit for the year ended June 30, compared
with a pretax profit of 703 million ringgit a year earlier.
Revenue totaled 925 million ringgit, up from 913 million
ringgit a year earlier. Unrealized foreign-exchange losses,
provisions for a decrease in the value of investments
totaled 545 million ringgit. Operating losses amounted to
817 million ringgit a year earlier.

The economic and financial crises have detrimentally
affected the financial performance of the group. Renong's
bottom line was also affected by the increase in
nonperformance loans at Commerce Asset-Holding Bhd., in
which Renong has a substantial stake. The company said many
of its investments have long gestation periods before
producing profits.


TENAGA NASIONAL: Tenaga strikes deal with IPPs
----------------------------------------------
The Asian Wall Street Journal reports Malaysia's national
power provider, Tenaga Nasional Bhd., and five of
Malaysia's largest independent power producers (or IPP's)
have agreed to allow Tenaga to defer and stagger payments.
This was done reportedly to ease some of Tenaga's
financial problems.

Tenaga had earlier requested an interest-free three-month
deferment in payment and a discount on total payments.
IPP's provide Tenaga with about 30 percent of its power,
and Tenaga pays them about 3.5 billion ringgit ($921.1
million) per year for this power. In addition to the new
agreement on staggered payments, the IPP's have also agreed
to provide Tenaga with a 30-day credit period in an effort
to ease Tenaga's short-term cash flow problems. This 30-day
credit will be put into effect immediately and ends on the
last day of 1999. Currently, according to its purchase
power agreements, Tenaga makes weekly and fortnightly
payments.


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

PHILIPPINE AIRLINES: Key vote as PAL looks for saviour
------------------------------------------------------
According to the SCMP, PAL shareholders yesterday stepped
up the search for a new investor to save the company as its
workers voted on a recovery plan aimed at preventing
creditors from repossessing its fleet.

President Joseph Estrada's spokesman said majority
shareholder Lucio Tan was abroad to convince European
creditors not to freeze the Airbus planes of debt-ridden
PAL.

The key to preserving the company's assets was a guarantee
against future strikes of the sort which crippled flight
operations for 22 days in June and which forced the firm to
stop payments on its US$2.1 billion debt. The airline said
it would be able to resume domestic flights on Oct 7
provided the union members agreed to waive their collective
bargaining agreement for 10 years and allow management to
trim the 8,700-strong work force by up to 30 per cent.

A PAL statement said several groups including major
international carriers are currently in talks with Mr Tan
for possible investments in the airline. PAL executive vice
president Manolo Aquino said the company was eyeing a
reduced fleet of 22 planes and that it was trying as much
as possible to keep these aircraft in the country.

Labour Secretary Bienvenido Laguesma, who oversaw the
ballot, said the results were expected by late today.
According to the Hong Kong Standard, Lucio Tan yesterday
ordered senior officials of the carrier to resign to allow
prospective investors to install new management. Courtesy
resignations would be subject to the final acceptance of
the new owners of the flag carrier.

PAL stopped flying last week after the union rejected a
management program to enable it to repay US$2.1 billion in
debts. However, the union accepted the terms on Monday,
including giving up their right to strike for 10 years and
allowing management to institute staff cuts. The agreement
was being put to a vote among the membership yesterday. A
favourable outcome would enable PAL to resume domestic
flights next week.

The report also says that Mr Tan, who has expressed his
desire to give up his majority shareholding, left for
Europe on Tuesday for talks with creditors who want to
repossess the bulk of the fleet.


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

BROADWAY INDUSTRIAL: Secures standstill letter
----------------------------------------------
Singapore BusinessTimes reports packaging company Broadway
Industrial has secured a standstill letter from its
lenders, paving the way for it to tap a $4.8 million loan
from DBS Bank. The loan was extended to subsidiary Broadway
Enterprises (Pte) Ltd (BEPL). A standstill letter is an
agreement between banks to maintain existing facilities and
not force the company into receivership by acting alone.

BEPL has to meet several conditions before it can draw down
the loan. One of them is that the unit must create a first
mortgage in favour of DBS Bank for its leasehold interests
in the property known as 18 Enterprise Road and Private Lot
A6017(b) at Kwong Ming Road. Another is Jurong Town
Corporation's consent for the creation of the mortgage.

Broadway said BEPL had also accepted overdraft facilities
of up to $1 million, for which BEPL had created a first
floating charge on accounts receivables in favour of DBS.


IPC CORP: Debts see IPC on brink of collapse
--------------------------------------------
According to the SCMP, IPC Corp may well have taken its
last bow when it announced the closure yesterday of its
main personal computer business and recorded the second
steepest first-half loss for a publicly traded company in
Singapore.

An analyst at Daiwa Institute of Research said that its
remaining business is not very promising and with computer
prices falling very sharply, its network business looks
very shaky. Analysts said the firm was now a shell.

For the Ngiam brothers who control IPC and for Singapore,
the company's troubles mark the failure of a home-grown
technology company that tried to make it big in global
markets.

While the company is now turning to the business of linking
computers on a network, not too many people are holding
much hope. The company itself said it did not expect any
improvement in the short term.

IPC posted an attributable loss of S$220.1 million for the
first half on a charge of $198.4 million. That compared
with a gain of $10.8 million last year, which resulted in
net profit of $29.6 million a year ago. As of December last
year, the company's debt stood at $330.3 million.


NATIONAL KAP: Results announcement
----------------------------------
Singapore BusinessTimes reports National Kap remained in
the red for the half year to June 30, 1998, with a net loss
of $1.7 million, due to the slowdown in the global
electronics industry. Turnover for the electronic parts
manufacturer more than quadrupled to $5.8 million due to
the inclusion of US subsidiary ASJ Components Inc. ASJ was
previously an associate company of the group. Loss per
share came to nine cents, a dip from 10 cents previously.


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 * * *