/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/981006.MBXT R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, October 6, 1998, Vol. 1, No. 158 Headlines * C H I N A & H O N G K O N G * BRISK WIN INVESTMENTS LIMITED: Notice of creditors' meeting BRISK WIN INVESTMENTS LIMITED: Winding-up notice CHINA ELEGANCE: Results announcement DC FINANCE (HOLDINGS): Deadline for acquisition extended HWA KAY THAI HOLDINGS: No agreement on debt restructure LAI SUN DEVELOPMENT: Hotel sale to help cut Lai Sun debt NOBLE INTERIOR LIMITED: Winding-up petition PEREGRINE FIXED INCOME FUND: Notice of creditors' meeting PEREGRINE FIXED INCOME FUND: Winding-up notice PEREGRINE FIXED INCOME ADVISORS: Creditors' meeting PEREGRINE FIXED INCOME ADVISORS: Winding-up notice SPECIAL SONG LIMITED: Notice of appointment of liquidators WAITAN RESOURCES LIMITED: Winding-up petition * J A P A N * KOMATSU LIMITED: Expects lower earnings LONG TERM CREDIT: LTCB rules out debt forgiveness LONG TERM CREDIT: Lower house panel passes banking bills LONG TERM CREDIT: Panel to probe causes of bad-loan woes MITA INDUSTRIAL: Court approves rehabilitation move MITSUBISHI MATERIALS: Net loss due to stock plunge MYCAL CORPORATION: Reverses report of year-end profit NIPPON LEASE: Sumitomo Marine and Fire fears debt impact SAKURA BANK: Sakura in 'Big Bang' battle SHOWA LINE: Fuji Bank forgives loans SUMITOMO CORPORATION: Results announcement TOSHIBA CORPORATION: Plans April reorganization * K O R E A * KABUL COMMUNICATION: Files for bankruptcy KISAN COMPANY: Files for bankruptcy * M A L A Y S I A * ALLANDES INDUSTRIES SDN BHD: Winding-up petition ALPHA DATA SDN BHD: Winding-up petition AMANAH CAPITAL PARTNERS BHD: Results announcement AOKAM PERDANA BHD: Results announcement CME GROUP BHD: Results announcement CHOCOLATE PRODUCTS (MALAYSIA) BHD: Results announcement FEDERAL FURNITURE HOLDINGS (M) BHD: Results announcement GLEANEALY PLANTS (MALAYA) BHD: Results announcement INSAS BHD: Results announcement KUB MALAYSIA BHD: Results announcement ORLANDO HOLDINGS BHD: Results announcement SEONG FATT TIMBER INDUSTRIES SDN BHD: Winding-up petition SHINOZUKA INDUSTRY (M) SDN BHD: Voluntary winding-up SINORA INDUSTRIES BHD: Results announcement STERIPAK SDN BHD: Winding-up petition SYARIKAT PERNIAGAAN PELADANG (KADA): Winding-up petition TM PLYWOOD SDN BHD: Winding-up petition WWL CORRUGATORS SDN BHD: Winding-up petition WELLFORM TECHNOLOGIES SDN BHD: Winding-up petition * P H I L I P P I N E S * FILSYN CORPORATION: Moves to restructure phP671-M debts PHILIPPINE AIRLINES: Old problems cloud PAL return to skies * S I N G A P O R E * IPC CORP: IPC in Zhuhai property talks NEPTUNE ORIENT LINES: Analysts are skeptical about recovery * T H A I L A N D * KRUNGTHAI THANAKIT: Propose change in directors MODERNFORM GROUP: Report of capital increase ================================= C H I N A & H O N G K O N G ================================= BRISK WIN INVESTMENTS LIMITED: Notice of creditors' meeting ----------------------------------------------------------- A meeting of members of BRISK WIN INVESTMENTS LIMITED will be held at 27/F., Island Place Tower, 510 King's Road, North Point, Hong Kong on Oct 12 at 10:30 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." BRISK WIN INVESTMENTS LIMITED: Winding-up notice ------------------------------------------------ On Sept 17, the sole member of BRISK WIN INVESTMENTS LIMITED adopted the resolution that the company wind up and dissolve on the ground that by reason of its liabilities it cannot continue in business. CHINA ELEGANCE: Results announcement ------------------------------------ The Asian financial turmoil has taken a heavy toll on ready-made garment manufacturer China Elegance International Fashion, as it slipped into the red for the financial year ending 31 March, 1998. China Elegance said it suffered a loss of $199.71 million for the year compared to a profit of $46.81 million for the same period last year. Turnover was down to $218.56 million compared to $290.91 million for the same period last year. In order to fulfill the payment of bank facilities, the group has no alternative but to sell inventory even at a small margin or loss to generate cash. China Elegance said the group will streamline and consolidate its business operations and control costs. DC FINANCE (HOLDINGS): Deadline for acquisition extended -------------------------------------------------------- The deadline for G-Prop (Holdings) to acquire a majority interest in DC Finance (Holdings) has been extended by two months. DC Finance and G-prop agreed to amend the transaction conditions involving the asset swap of equity interest and portfolio, according to a joint statement. In June, DC finance said its controlling shareholder, Irison Development agreed to dispose of 34.9% interest to listed G-prop, which was formerly called Tung Fong Hung Properties (Holdings). This is the second time the amount of consideration has been changed since the transaction was announced. The price of the 34.9 % stake in DC Finance has been reduced from $378 million to $348 million. HWA KAY THAI HOLDINGS: No agreement on debt restructure ------------------------------------------------------- Hwa Kay Thai Holdings' plans to sew up a debt-restructuring deal with an investor has been terminated as the parties were unable to sign the agreement before last Wednesday's deadline. The company said it would start new talks with the investor and would consider a debt-restructuring proposal offered by another investor. Hwa Kay Thai said that if it could not reach a debt- restructuring deal, it might be forced into liquidation. The firm extended the deadline from September 15 to 30 in the hope of securing the deal. LAI SUN DEVELOPMENT: Hotel sale to help cut Lai Sun debt -------------------------------------------------------- According to the SCMP, Lai Sun Development's plan to use its hotel arm -- Lai Sun Hotels International (LSHI) -- to alleviate its debt burden will receive a boost next month with the sale of LSHI's 50 per cent-owned Four Seasons Hotel in New York. Lai Sun Development deputy chairman Peter Lam Kin-ngok, also chairman of LSHI, said the sale will be signed in November. At its peak, Lai Sun Development's gearing soared to more than 60 per cent in the wake of the US$6.9 billion purchase last year of Furama Hotel Enterprises, whose main asset is the Furama Hotel in Central. Since then gearing has been cut to less than 50 per cent with the aid of HK$3 billion in asset sales this year. Despite criticism of the Furama purchase, Mr Lam said Lai Sun was interested in its redevelopment potential and he was confident the prime site property would be a valuable asset in a few years. Analysts expect the sale of the Four Seasons Hotel to reap about US$400 million. The hotel is running at an occupancy rate of 80 per cent with an average daily room rate of about US$580. According to the company's latest annual report, the average daily room rate in 1996 was US$474. The hotel was bought by a consortium led by Lai Sun Hotels in April last year for an estimated US$190 million. Analysts expect Lai Sun Development to ask LSHI to pay it a special dividend following the sale. Mr Lam said the property company would continue to dispose of assets to lower its gearing to about 40 per cent. Lai Sun Development is also putting its two Central commercial buildings up for sale via tender. NOBLE INTERIOR LIMITED: Winding-up petition ------------------------------------------- A petition for the winding up of NOBLE INTERIOR LIMITED was presented to the High Court on Sept 25 by Lai Fong Chow of Room 233, Wah Kin House, Wah Fu Estate, Aberdeen, Hong Kong, and the said petition is directed to be heard before the court at 9:30 am on Oct 29, 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, M.K. Kwan & Co. 20th Floor, Skyline Commercial Centre, 71-77 Wing Lok Street, Sheung Wan, Hong Kong on payment of the regulated charges for the same. PEREGRINE FIXED INCOME FUND: Notice of creditors' meeting --------------------------------------------------------- A meeting of members of PEREGRINE FIXED INCOME FUND LIMITED will be held at 27/F., Island Place Tower, 510 King's Road, North Point, Hong Kong on Oct 12 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 John Kwok Heem Li 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." PEREGRINE FIXED INCOME FUND: Winding-up notice ---------------------------------------------- On Sept 17, the sole member of PEREGRINE FIXED INCOME FUND LIMITED adopted the resolution that the company wind up and dissolve on the ground that by reason of its liabilities it cannot continue in business. PEREGRINE FIXED INCOME ADVISORS: Creditors' meeting --------------------------------------------------- A meeting of members of PEREGRINE FIXED INCOME ADVISORS LIMITED will be held at 27/F., Island Place Tower, 510 King's Road, North Point, Hong Kong on Oct 12 at 10:00 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 John Kwok Heem Li 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." PEREGRINE FIXED INCOME ADVISORS: Winding-up notice -------------------------------------------------- On Sept 17, the sole member of PEREGRINE FIXED INCOME ADVISORS LIMITED adopted the resolution that the company do wind up and dissolve on the ground that by reason of its liabilities it cannot continue in business. SPECIAL SONG LIMITED: Notice of appointment of liquidators ---------------------------------------------------------- A notice dated Oct 5 in the Hong Kong Standard shows the appointment on September 16 of joint and several liquidators for SPECIAL SONG LIMITED. The registered office is 37th Floor, Wu Chung House, 213 Queen's Road East, Wanchai, Hong Kong. The joint and several liquidators are Simon Richard Blade and Stephen Peter Stuart Weathseed, c/o Grant Thornton, 37th Floor, Wu Chung House, 213 Queen's Road East, Wanchai, Hong Kong. WAITAN RESOURCES LIMITED: Winding-up petition --------------------------------------------- Notice is hereby given that a petition for the winding-up of Waitan Resources Limited by the High Court of Hong Kong was, on the 7th day of August, 1998, presented to the said Court by Shell Hong Kong Limited and the petition is heard on 14th of October, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. ========= J A P A N ========= KOMATSU LIMITED: Expects lower earnings --------------------------------------- Bloomberg reports shares of Komatsu Ltd. fell as much as 26 yen to 554. The construction machinery maker is likely to post a net loss of 5 billion yen to 10 billion yen for the half-year ended Sept. 30, amid unrealized losses on bank shares it owns, the Nihon Keizai newspaper reported, citing unnamed company sources. The company posted 21.4 billion yen in losses in the value of shares in the half-year, mostly in Japanese banks. LONG TERM CREDIT: LTCB rules out debt forgiveness ------------------------------------------------- According to the SCMP, Long Term Credit Bank of Japan is abandoning a plan, announced in August, to forgive all if its 520 billion yen in loans to three non-bank affiliates. One of those affiliates, Japan Leasing Corp, on Sunday filed for protection from its creditors with a record two trillion yen in liabilities. LTCB is still deciding how to support the other two affiliates, Nippon Landic and Nippon Enterprise Development Corp. LONG TERM CREDIT: Lower house panel passes banking bills -------------------------------------------------------- Reuters reports a financial stabilisation committee of Japan's Lower House on Friday passed a set of financial stabilisation bills designed to wind up failed banks and temporarily nationalise those that fail or that request such a move. The ruling and opposition camp have agreed to temporarily nationalise troubled Long-term Credit Bank of Japan, force it to write off problem loans and sell off healthy assets to the highest bidder -- hoped by the government to be Sumitomo Trust & Banking Co Ltd. They have also agreed to abolish an existing 13 trillion yen ($96.2 billion) bank recapitalisation fund and to allow fund injections into "receiver banks" that take over failed banks. LONG TERM CREDIT: Panel to probe causes of bad-loan woes -------------------------------------------------------- Kyodo News reports Long-Term Credit Bank of Japan plans to set up an in-house panel of investigators to clarify how property lending in the 1980s later resulted in heaps of bad loans, sources close to LTCB said Saturday. The probe, if conducted, would be an act of atonement similar to that of the now-defunct Yamaichi Securities Co., which released a report in April showing how it kept losses of more than 200 billion yen off its balance sheet. These hidden losses are what led to its collapse in November last year. The panel would try to determine why the bank lent massive amounts to real estate companies and groups such as the E.I.E. group, which was widely known to be a major speculator in the bubble era, they said. MITA INDUSTRIAL: Court approves rehabilitation move --------------------------------------------------- Kyodo News reports the Osaka District Court gave approval Monday to photocopier maker Mita Industrial Co. to restructure itself under the Corporate Rehabilitation Law. The court concluded that Mita Industrial's rehabilitation is possible in view of support offered by Kyocera Corp., a major ceramics maker, and financial institutions, court officials said. Healthy operations of Mita Industrial's Hong Kong subsidiary, the Osaka-based company's principal manufacturing outlet, also contributed to the court decision, they said. The court appointed Koji Seki, a Kyocera executive, as administrator of operations, and lawyer Makoto Miyazaki as administrator of legal affairs. Hit hard by the continued economic slump at home and the yen's depreciation, Mita Industrial in August applied to the court for protection from creditors under the rehabilitation law. Since Mita Industrial's de facto bankruptcy with liabilities of more than 200 billion yen, Miyazaki has been serving as court-appointed receiver. The court also gave its approval to applications from five Mita Industrial subsidiaries for rehabilitation under its protection. MITSUBISHI MATERIALS: Net loss due to stock plunge -------------------------------------------------- The Nihon Keizai newspaper reports Mitsubishi Materials Corp. posted a net loss of 13 billion yen in the fiscal first half ended Wednesday, compared with 4.3 billion yen in net profit a year earlier, company officials said Friday. The company attributed the red ink to about 18 billion yen in stock appraisal loss due to the recent stock market plunge. The nonferrous metal smelter aims to post 3 billion yen in net profit in the full fiscal year through March 1999, and will embark on aggressive restructuring including selling off assets and reducing labor costs. Mitsubishi Materials plans to cut some 100 billion yen worth of interest-bearing liabilities by March 2001, using funds raised mainly by selling securities and real estate such as unused land and employee dormitories and accommodation. MYCAL CORPORATION: Reverses report of year-end profit ----------------------------------------------------- Bloomberg reports shares of Mycal Corp. fell as much as 100 yen to a record low of 493, extending Friday's 14.43 percent decline, after it was revealed that the supermarket operator had a fiscal 1997 loss under U.S. accounting standards, instead of a profit as the company had reported. NIPPON LEASE: Sumitomo Marine and Fire fears debt impact -------------------------------------------------------- According to the SCMP, Sumitomo Marine and Fire Insurance Co. says it could fail to recover part of its 6.6 billion yen outstanding loans to Nippon Lease Co. following the company's collapse. Sumitomo Marine said it would make provision for the losses in the accounts for the year to March 31. Any write-offs would not affect forecast earnings for the term. The company also said it had loan exposure of 608 million yen to Nippon Lease Auto, a unit of Nippon Lease, which has filed for creditor protection. SAKURA BANK: Sakura in 'Big Bang' battle ---------------------------------------- According to Hong Kong Standard, Sakura Bank 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 Deutesche Bank and Kokusai Securities on an investment trust alliance. According to the SCMP, reports said that Sakura is in talks with Deutsche Bank and a second-tier Japanese brokerage to set up an asset management joint venture. The two banks and Kokusai Securities are considering a joint venture in Japan to develop investment trusts products and to manage funds, according to the Sankei Shimbun. The paper said that the move is aimed at taking advantage of the deregulation of investment trusts on December 1, which will allow banks to sell such instruments to individual customers. They are now negotiating the details, including the equity stake to be held by each. Sakura would not confirm the report. A spokesman said that the bank was considering various ways to strengthen the securities business but nothing has been decided yet. Kokusai Securities dismissed the report and Deutesche said it had no comment to make. Despite its strength in retail banking, shares in Sakura have been under selling pressure due to the burden of its bad loans. The bank said it wanted to raise the size of a planned capital increase to almost 350 billion yen. The bank needs investment to tackle falls in both its share price and its credit ratings. The Nihon Keizai Shimbun business daily said Sakura will ask about 25 firms to contribute to the extra capital. Quoting sources within the Mitsui group, the paper said the bank was turning to major shareholders such as Nippon Life Insurance, firms with which it has close business ties including Nomura Securities and several power companies. SHOWA LINE: Fuji Bank forgives loans ------------------------------------ Bloomberg reports shares of Fuji Bank Ltd. rose as much as 19 yen to 294. The commercial and institutional banking service provider said it forgave loans worth 20 billion yen, or 26 percent of the total outstanding, to Showa Line Ltd., a ship operator that was absorbed by Nippon Yusen KK last month. SUMITOMO CORPORATION: Results announcement ------------------------------------------ Japan's Sumitomo Corp said Friday it expects to post a 59 billion yen parent net loss for the first half of the year ended Sept 30, compared with a 13 billion yen net profit originally forecast. Sumitomo attributed the revision primarily to a securities valuation loss of 75 billion yen for the first half. The company also lowered its parent net-profit projections for the fiscal year, to 15 billion yen from its earlier forecasts of 28 billion yen. The company said that about 75% of the 75 billion yen securities valuation loss is attributable to the fall in bank share prices. Sumitomo's holdings of Bank Tokyo- Mitsubishi accounted for 19.9 billion yen of the total loss, while Sumitomo Bank shares made up 14.6 billion yen, and Sumitomo Trust & Banking shares comprises 11.8 billion yen. TOSHIBA CORPORATION: Plans April reorganization ----------------------------------------------- Bloomberg reports shares of Toshiba Corp. fell as much as 15 yen to 465. The electronics maker plans by April to reorganize its 15 divisions into nine autonomous units that will oversee affiliate operations, the Nihon Keizai newspaper reported, without citing sources. The Tokyo-based electronics maker also plans to reduce its head-office staff to 300 from 700. ========= K O R E A ========= KABUL COMMUNICATION: Files for bankruptcy ----------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Kabul Communication Co. went bankrupt. KISAN COMPANY: Files for bankruptcy ----------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Kisan Company filed for bankruptcy at the Seoul District Court. =============== M A L A Y S I A =============== ALLANDES INDUSTRIES SDN BHD: Winding-up petition ------------------------------------------------ T E Electric Sdn Bhd on 8/7/98 petitioned for the winding- up of Allandes Industries Sdn Bhd. The petition is directed to be heard on 2/11/98. ALPHA DATA SDN BHD: Winding-up petition --------------------------------------- The Pacific Bank Bhd on 4/8/98 petitioned for the winding- up of Alpha Data Sdn Bhd. The petition is directed to be heard on 3/12/98. AMANAH CAPITAL PARTNERS BHD: Results announcement ------------------------------------------------- Amanah Capital Partners Bhd (listed on the Financial Sector of the KLSE) posted a post-tax loss of RM45.917mil for the half year ended 30/6/98, compared to a post-tax profit of RM13.861mil previously. EPS dropped from 10.8sen to a loss per share of 39.6sen. AOKAM PERDANA BHD: Results announcement --------------------------------------- Aokam Perdana Bhd (listed on the KLSE) posted a post-tax loss of RM268.612mil for the year ended 30/6/98, compared to a post-tax loss of RM151.508mil previously. Loss per share rose from RM0.72 to RM1.21 during the same period. CME GROUP BHD: Results announcement ----------------------------------- CME Group Bhd (listed on the KLSE) posted a group post-tax loss of RM2.121mil for the 6months ended 30/6/98, compared to a post-tax profit of RM1.025mil previously. EPS fell from 9sen to a loss per share of 11sen during the same period. CHOCOLATE PRODUCTS (MALAYSIA) BHD: Results announcement ------------------------------------------------------- Chocolate Products (Malaysia) Bhd (listed on the KLSE) posted a pre-tax loss of RM31.19mil for the year ended 30/6/98, compared to RM17.80mil previously. EPS dropped from RM0.01 to a loss per share of RM0.14 FEDERAL FURNITURE HOLDINGS (M) BHD: Results announcement -------------------------------------------------------- Federal Furniture Holdings (M) Bhd (listed on the KLSE) posted a post-tax loss of RM0.282mil for the 6months ended 30/6/98, compared to a post-tax loss of RM1.674mil previously. Loss per share fell from 5.1sen to 1.74sen during the same period. GLEANEALY PLANTS (MALAYA) BHD: Results announcement --------------------------------------------------- Gleanealy Plants (Malaya) Bhd (listed on the KLSE) posted a pre-tax loss of RM97.3mil for the year ended 30/6/98, compared to a pre-tax profit of RM57.0mil. EPS fell from RM0.31 previously to a loss per share of RM0.69 INSAS BHD: Results announcement ------------------------------- Insas Bhd (listed on the KLSE) a company in the Financial Sector, posted a pre-tax loss of RM177.15mil for the year ended 30/6/98, compared to a pre-tax profit of RM111.77mil previously. EPS fell from RM0.16 previously to a loss per share of RM0.31. Annual turnover for the year dropped from RM568.04mil previously to RM245.68mil for the current year. KUB MALAYSIA BHD: Results announcement -------------------------------------- KUB Malaysia Bhd, listed on the financial sector of KLSE, posted a group operating loss of RM25.14mil and group after tax loss of RM28.1mil for the half year ended 30/6/98. The loss was attributable to interest expense of RM17.5mil on the loan to acquire the Sime Bank rights issue last year. ORLANDO HOLDINGS BHD: Results announcement ------------------------------------------ Orlando Holdings Bhd (listed on the KLSE) posted a pre-tax loss of RM9.39mil for the half year ended 30/6/98, compared to a pre-tax loss of RM1.36mil previously. Loss per share rose from RM0.08 to RM0.47. SEONG FATT TIMBER INDUSTRIES SDN BHD: Winding-up petition --------------------------------------------------------- Temperate Wood Sdn Bhd on 21/7/98 petitioned for the winding-up of Seong Fatt Timber Industries Sdn Bhd. The petition is directed to be heard on 23/10/98 SHINOZUKA INDUSTRY (M) SDN BHD: Voluntary winding-up ---------------------------------------------------- The members of Shinozuka Industry (M) Sdn Bhd on 29/9/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 5/11/98. SINORA INDUSTRIES BHD: Results announcement ------------------------------------------- Sinora Industries Bhd (listed on the KLSE) reported a group pre-tax loss of RM11.162mil for the 6 months ended 30/6/98, compared to a pre-tax profit of RM3.608mil previously. Loss per share was 8.68sen compared to earnings per share of 3.26sen in the half year to June 1997. STERIPAK SDN BHD: Winding-up petition ------------------------------------- Lawson Mardon Packaging UK Ltd on 13/8/98 petitioned for the winding-up of Steripak Sdn Bhd. The petition is directed to be heard on 6/11/98. SYARIKAT PERNIAGAAN PELADANG (KADA): Winding-up petition -------------------------------------------------------- Agrevo H.S. (Malaysia) Sdn Bhd on 12/9/98 petitioned for the winding-up of Syarikat Perniagaan Peladang (Malaysia) Sdn Bhd. The petition is directed to be heard on 15/12/98. TM PLYWOOD SDN BHD: Winding-up petition --------------------------------------- Arise Enterprise Sdn Bhd on 12/8/98 petitioned for the winding-up of TM Plywood Sdn Bhd. The petition is directed to be heard on 13/11/98. WWL CORRUGATORS SDN BHD: Winding-up petition -------------------------------------------- Genting Sanyen Industrial Paper Sdn Bhd on 1/8/98 petitioned for the winding-up of WWL Corrugators Sdn Bhd. The petition is directed to be heard on 25/11/98. WELLFORM TECHNOLOGIES SDN BHD: Winding-up petition -------------------------------------------------- Vast Prosystems Sdn Bhd on 19/8/98 petitioned for the winding-up of Wellform Technologies Sdn Bhd. The petition is directed to be heard on 15/10/98. ===================== P H I L I P P I N E S ===================== FILSYN CORPORATION: Moves to restructure phP671-M debts ------------------------------------------------------- BusinessWorld reports the board of directors of publicly listed firm Filsyn Corp. has finally approved the restructuring of the company's debts worth 671.07 million Philippine pesos (PhP) with several banks. Filsyn corporate secretary Cirilo T. Tolosa recently informed the stock exchange of the developments in the company's loan restructuring program which started May this year. However, he declined to disclose further details on the negotiations. Records at the Philippine Stock Exchange showed Filsyn's bank loans as of June consisted of 56.3% of the company's current liabilities which amounted to PhP1.19 billion. Aside from bank loans, current liabilities included accounts payable and accrued expenses (PhP209.07 million); liabilities under trust receipts (PhP42.86 million); draft and acceptances payable (PhP95.23 million); and current portion of long-term debt (PhP173.97 million). Sources said the company, aside from discussing with creditor banks, is likewise considering the sale of certain fixed assets. Proceeds of the sale will be used to partially pay off financial obligations. PHILIPPINE AIRLINES: Old problems cloud PAL return to skies ----------------------------------------------------------- The SCMP reports that PAL returns to the skies this week after a fortnight's absence but will need the backing of a foreign partner if it is to fly for long, according to analysts. PAL plans to resume domestic operations on Wednesday and hopes to resume international flights as early as Oct 15. A professor at the University of the Philippines said PAL cannot survive without a strategic partnership to signal to creditors that it is a well-managed airline. PAL executive vice-president Manolo Aquino said one of the first tasks would be to reorganise the company, which would mean taking in new investors. Officials said Cathay Pacific had begun due diligence checks before making a serious offer to buy a stake. Executives of Northwest Airlines are also due to fly in this week to look into a possible investment. Administration officials said PAL's eventual foreign partner might have to take over its management. A PAL executive said the airline has to come up with rehabilitation plan, restructuring its debts and working out an arrangement with creditors on how many aircraft they will allow the airline to keep. PAL also needs to trim its costly operations and boost a tenuous revenue base to survive stiffer competition and a shrivelled market. The Manila Standard said in an editorial yesterday that the labor problem was easy, the hard part was how to survive the economic crisis and the shrinking of the travel market. ================= S I N G A P O R E ================= IPC CORP: IPC in Zhuhai property talks -------------------------------------- According to the SCMP, Singapore computer and telecommunications equipment distributor IPC Corp is in talks with potential partners to develop properties in Zhuhai. IPC said there had been no change to the book values of the properties in the mainland. NEPTUNE ORIENT LINES: Analysts are skeptical about recovery ----------------------------------------------------------- Singapore BusinessTimes cites a Reuters report that Neptune Orient Lines, which reported a stunning net loss of $240 million for the first half of 1998, is unlikely to return to the black next year, analysts said. NOL, the world's fifth largest container shipping group after its takeover of American rival APL last November which cost it more than US$800 million, said the second half would be better as cost savings from the merger kicked in. NOL, one of the most heavily indebted groups in Singapore with a gearing of about 456 per cent, hoped to be profitable next year -- assuming freight rates increased and the US economy stayed strong, deputy chief executive officer Lim How Teck said. NOL's gearing, or debt-to-equity ratio, was top concern among some analysts. At the end of June, NOL's total borrowings were around $5.1 billion compared with around $4.6 billion in December 1997. =============== T H A I L A N D =============== KRUNGTHAI THANAKIT: Propose change in directors ----------------------------------------------- Pursuant to the Bank of Thailand's financial institutions rehabilitation scheme in which Krungthai Thanakit Public Company Limited shall be integrated with Union Bank of Bangkok Public Company Limited and 12 other finance companies, the Company executives proposed that the Financial Institution Development fund consider a change in the Company directors so as to smoothly facilitate the consolidation exercise without conflict of interest among all parties concerned. MODERNFORM GROUP: Report of capital increase -------------------------------------------- Modernform Group Public Company Limited has informed the SET that the company has resolved to increase the registered capital of the Company of another Baht 300 million from the existing registered capital of Baht 600 million to Baht 900 million by an issue of 30 million new ordinary shares at the par value of Baht 10 each. There will be no remaining shares from the allotment since all 20 million shares and 10 million shares reserved for exercise of the warrants will be allotted to Steelcase Inc., which will be an offer for sale to not more than 35 specified investors and/or 17 categories of qualified investors. The capital increase will be used as working capital of the Company, as the company's capital restructuring plan, and as a source of funds for the Company's future development. Modernform plans to use the capital increase fund to repay loan and interest, reducing the Company's liabilities and interest expenses. 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 * * *