---

T R O U B L E D   C O M P A N Y   R E P O R T E R    =20
=20
             A S I A   P A C I F I C     =20

      Friday, October 9, 1998, Vol. 1, No. 161

                    Headlines


* C H I N A   &   H O N G   K O N G *

CA PACIFIC SECURITIES: Legislators reject compensation
GOLDLAND PRINTING COMPANY LIMITED: Winding-up petition=20
GUANGDONG INTERNATIONAL: Collapse prompts 14.5% stock fall
SWEET HOME PROPERTIES LIMITED: Winding-up petition =20

* I N D O N E S I A *

BANK BUMI DAYA: Thompson lowers ratings of 5 banks
BANK DAGANG NEGARA: Thompson lowers ratings of 5 banks
BANK NEGARA INDONESIA: Thompson lowers ratings of 5 banks
BANK PEMBANGUNAN INDONESIA: Thompson lowers rating=20
BANK TABUNGAN NEGARA: Thompson lowers ratings of 5 banks
GARUDA INDONESIA: Garuda trims loss forecast
PT ASIAN DEVELOPMENT SECURITIES: Securities firm to close
SEMEN GRESIK: Cemex seeks to increase Gresik stake

* J A P A N *

KAJIMA CORP: Projects Y28 billion loss for first half
LONG TERM CREDIT: Merger committees with Sumitomo disbanded=20
TOKAI BANK: Writes off 70 bln yen of bad loans

* K O R E A *

DAEWOO: Government threatens to suspend chaebols' credit
HAITAI GROUP: Haitai units to be auctioned off
HYUNDAI: Government threatens to suspend chaebols' credit
ICHON ELECTRONICS: Ichon Electronics Company liquidates
LG GROUP: Government threatens to suspend chaebols' credit
MONALISA COMPANY: Granted court receivership
SAMSUNG GROUP: Government threatens to suspend credit
SK GROUP: Government threatens to suspend chaebols' credit

* M A L A Y S I A *

AMMB HOLDINGS: Proposes to recapitalise three subsidiaries
BINARIANG BHD: BT purchases stake in phone company
DBA DISTRIBUTION SDN BHD: Winding-up petition
FRZA PRINT (M) SDN BHD: Voluntary winding-up
GREAT EASTERN ENTERPRISE (M) SDN BHD: Voluntary winding-up
JENMAU SDN BHD: Winding-up petition=20
PERNAS INTERNATIONAL: RAM lowers ratings for bonds
PROPILE SDN BHD: Winding-up petition
RENONG BHD: Asks bankers to reschedule debt
REPCO HOLDINGS BHD: Subsidiary's liquidation
SCK-TEN ENGINEERING SDN BHD: Winding-up petition
SAN-A GENERAL CORPORATION SDN BHD: Winding-up petition
SINARAN SDN BHD: Winding-up petition
SOUTH CHINA VENTURE SDN BHD: Winding-up petition
WING TIEK HOLDINGS BHD: Section 176

* S I N G A P O R E *=20

NEPTUNE ORIENT LINES: Asset plan greeted with caution

* T H A I L A N D *

AYUDHYA INVESTMENT: Says merger report is untrue
BANK OF AYUDHYA: S&P lowers debt ratings on 4 banks
BANGKOK BANK PCL: S&P lowers debt ratings on 4 banks
INDUSTRIAL FINANCE CORPORATION: S&P lowers debt ratings=20
PADAENG INDUSTRY: Negotiates repayment schedule
SIAM COMMERCIAL BANK: S&P lowers debt ratings on 4 banks
THAI OIL: Two oil giants eye stakes in Thai projects



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C H I N A   &   H O N G   K O N G
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CA PACIFIC SECURITIES: Legislators reject compensation
------------------------------------------------------
According to the SCMP and the Hong Kong Standard,=20
compensation payments to clients of collapsed brokerage CA=20
Pacific Securities are likely to remain at a maximum of=20
$150,000 each after a call by the Democratic Party to lift=20
the payout to $200,000 was rejected by legislators.
=20
CA Pacific Securities and its margin financing arm=20
collapsed in January, leaving 5,212 claimants who together=20
claimed $2.4 billion from the brokerage. Under the package=20
proposed by the Securities and Futures Commission all cash=20
clients and certain margin clients of the broker will=20
receive a maximum compensation of $150,000.

The package, worth $412 million, is the highest payout=20
stemming from a brokerage collapse in Hong Kong.


GOLDLAND PRINTING COMPANY LIMITED: Winding-up petition=20
------------------------------------------------------
Notice is hereby given that a petition for the winding-up=20
of Goldland Printing Company Limited by the High Court of=20
Hong Kong was, on the 21st day of September, 1998,=20
presented to the said Court by Lam Chiu Keung and the=20
petition is heard on 21st of October, 1998. Other creditors=20
who support or oppose the making of the order may appear at=20
the time of the hearing. =20


GUANGDONG INTERNATIONAL: Collapse prompts 14.5% stock fall
----------------------------------------------------------
According to the SCMP, a long queue formed outside=20
Guangdong International Trust and Investment Corp.'s=20
(Gitic) headquarters in central Guanzhou yesterday as=20
anxious investors waited to complete forms and register as=20
part of the first step to have their savings returned.

Bankers and analysts said they were surprised the mainland=20
government decided to shut Gitic rather than bail it out,=20
although they said Beijing's determination to tidy up the=20
sector would be good for its long-term development.

In response to the unexpected news, Standard & Poor's said=20
it had changed Gitic's counterparty credit rating to "not=20
meaningful" and placed its US$450 million debt issues on=20
watch list with negative implications.

Its counterpart, Moody's Investors Service, announced it=20
had placed Gitic's ratings on review for possible=20
downgrade, which would affect US$470 million of debt=20
securities.=20

The fate of Gitic's arm, Gitic Enterprises, remained=20
unknown with chairman Mai Zhinan saying that share trading=20
would remain suspended. Its 15.07 per cent indirectly owned=20
DC Finance (Holdings) said operations were unaffected and=20
it had no loans or guarantee arrangements with Gitic.=20

Gitic officials, who last month expressed confidence about=20
the firm's financial viability and continuity during the=20
on-going restructuring of the Itic sector, yesterday=20
declined to comment.

Analysts said excessive foreign debt and lending to China's=20
real estate market had combined to undermine the firm - the=20
third large Chinese financial institution to be closed this=20
year after China Venturetech and Hainan Development Bank.

Niu Nanjie, an official at the Bank of China, which took=20
over Gitic's debts and obligations, said all debt=20
repayments would be stopped until the end of a three-month=20
period to January 6.

One Hong Kong-based debt market database said Gitic has an=20
outstanding foreign currency debt of US$1.38 billion,=20
including project finance facilities and debt guarantees=20
provided to affiliated companies.

According to the Hong Kong Standard, Beijing's shock=20
decision to shut down Gitic has shaken up bankers with=20
exposure to Gitic and other ailing state-owned enterprises.

An official from Guangdong's economic commission said the=20
agency would not be involved in the post-closure=20
arrangements for Gitic. Economic commission deputy director=20
Zhong Zhanyao said the government would not take part in=20
anything related to Gitic's issue since all decisions will
be subject to the PBOC.=20

The reluctance of Guangdong to get involved apparently=20
stems from Gitic's purported unauthorised business=20
activities. A source close to the provincial leadership=20
said that preliminary evidence indicated that the Gitic=20
decision was linked to some of its transactions being made
without getting the PBOC's nod.

PBOC yesterday appointed the Bank of China as the custodian=20
for the assets and liabilities of Gitic. A Bank of China=20
spokesman said Gitic and its creditors would register debts=20
and financial claims with designated branches of the Bank=20
of China during the period Oct 6 to January 6 next year and=20
no debts will be paid during that period.

Officials declined to comment on the extent of Gitic's=20
domestic or foreign debt, but foreign bankers estimated it=20
had some US$500 million in short-term debts and US$500=20
million more in long-term debt. The company's assets should=20
be considerably more than that.=20

A PBOC statement said foreign investors would have priority=20
when it came to debt repayment.=20

It is unclear whether or not Gitic will be closed down=20
after the takeover or whether part of its operations will=20
be sustained and run under a different state-owned agency.


SWEET HOME PROPERTIES LIMITED: Winding-up petition =20
--------------------------------------------------
Notice is hereby given that a petition for the winding-up=20
of Sweet Home Properties Limited by the High Court of Hong=20
Kong was, on the 29th day of September, 1998, presented to=20
the said Court by Yeung Hung Kin and the petition is heard=20
on 4th of November, 1998. Other creditors who support or=20
oppose the making of the order may appear at the time of=20
the hearing. =20


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I N D O N E S I A
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BANK BUMI DAYA: Thompson lowers ratings of 5 banks
--------------------------------------------------
The Asian Wall Street Journal reported that Thompson=20
BankWatch has downgraded the short-term local currency=20
ratings for five Indonesian banks. The ratings changes=20
reflect the most recently released performance data, and=20
the systematic growing risks facing these banks. =20

The banks that had their local currency rating downgraded=20
from LC-3 to LC-4 are Bank Bumi Daya, Bank Dagang Negara,
Bank Negara Indonesia, Bank Pembangunan Indonesia, and
Bank Tabungan Negara.


BANK DAGANG NEGARA: Thompson lowers ratings of 5 banks
------------------------------------------------------
The Asian Wall Street Journal reported that Thompson=20
BankWatch has downgraded the short-term local currency=20
ratings for five Indonesian banks. The ratings changes=20
reflect the most recently released performance data, and=20
the systematic growing risks facing these banks. =20

The banks that had their local currency rating downgraded=20
from LC-3 to LC-4 are Bank Bumi Daya, Bank Dagang Negara,
Bank Negara Indonesia, Bank Pembangunan Indonesia, and
Bank Tabungan Negara.


BANK NEGARA INDONESIA: Thompson lowers ratings of 5 banks
---------------------------------------------------------
The Asian Wall Street Journal reported that Thompson=20
BankWatch has downgraded the short-term local currency=20
ratings for five Indonesian banks. The ratings changes=20
reflect the most recently released performance data, and=20
the systematic growing risks facing these banks. =20

The banks that had their local currency rating downgraded=20
from LC-3 to LC-4 are Bank Bumi Daya, Bank Dagang Negara,
Bank Negara Indonesia, Bank Pembangunan Indonesia, and
Bank Tabungan Negara.


BANK PEMBANGUNAN INDONESIA: Thompson lowers rating=20
--------------------------------------------------
The Asian Wall Street Journal reported that Thompson=20
BankWatch has downgraded the short-term local currency=20
ratings for five Indonesian banks. The ratings changes=20
reflect the most recently released performance data, and=20
the systematic growing risks facing these banks. =20

The banks that had their local currency rating downgraded=20
from LC-3 to LC-4 are Bank Bumi Daya, Bank Dagang Negara,
Bank Negara Indonesia, Bank Pembangunan Indonesia, and
Bank Tabungan Negara.


BANK TABUNGAN NEGARA: Thompson lowers ratings of 5 banks
--------------------------------------------------------
The Asian Wall Street Journal reported that Thompson=20
BankWatch has downgraded the short-term local currency=20
ratings for five Indonesian banks. The ratings changes=20
reflect the most recently released performance data, and=20
the systematic growing risks facing these banks. =20

The banks that had their local currency rating downgraded=20
from LC-3 to LC-4 are Bank Bumi Daya, Bank Dagang Negara,
Bank Negara Indonesia, Bank Pembangunan Indonesia, and
Bank Tabungan Negara.


GARUDA INDONESIA: Garuda trims loss forecast
--------------------------------------------
According to the SCMP, airline Garuda expects a net loss of=20
400 billion rupiah this year, far less than previously=20
forecast. In August, State Enterprises Minister Tanri Abeng=20
said the airline could post a net loss of 3.25 trillion=20
rupiah this year, before rebounding to a net profit of 500=20
billion rupiah next year.

Garuda has been shrinking its operations to cope with=20
Indonesia's economic downturn. It has returned several=20
leased planes and now flies just three European routes -=20
London, Paris and Amsterdam. The company also plans to lay=20
off thousands of staff in the months ahead.

Mr Abeng said this week that  a stake in Garuda could be=20
sold to a foreign investor by 2000, but yesterday added=20
that the company's financial position was too weak for a=20
stake to be sold at present. He said the government would=20
wait until the airline's position improved so that they=20
could have a stronger bargaining position against foreign
counterparts.

The airline has been battered by Asia's economic decline=20
and by the collapse of the rupiah. Its plan for=20
privatisation in 1996 was postponed indefinitely.


PT ASIAN DEVELOPMENT SECURITIES: Securities firm to close
---------------------------------------------------------
The Asian Wall Street Journal reports that the PT Asia=20
Development Securities will stop operating on Friday,=20
October 9. PT Asian Development Securities is controlled by=20
Yamaichi Securities of Japan, which has a 49 percent stake.=20
Yamaichi Securities is currently undergoing liquidation,
and has failed to find a buyer for its portion of Asian=20
Development Securities after a year long effort.

Asian Development Securities is a mid sized brokerage firm,=20
employs 35 people, and has been the share-trading agent for=20
Yamaichi and Templeton International Inc.


SEMEN GRESIK: Cemex seeks to increase Gresik stake
--------------------------------------------------
The SCMP reported that according to the president of=20
Indonesia's state-run cement firm Semen Gresik, Urip=20
Timuryono, Mexican giant Cementos Mexicanos (Cemex) wants=20
to buy a stake of up to 25 per cent in Gresik so that they=20
can have two representatives on the board of directors and=20
two on the board of commissioners.

Subject to government approval, a further 5 per cent could=20
be purchased from the public.
=20
Cemex won the bid to buy a 14 per cent stake in Semen=20
Gresik as there were no other bidders in the second tender=20
last month. As part of the offer, Cemex was allowed to buy=20
an additional 6 per cent through a tender offer so that it=20
could place one director in Gresik.
=20
Mr Urip said that the company was targeting exports of one=20
million tonnes of cement this year in the face of shrinking=20
domestic demand due to weakening construction activities=20
and purchasing power.
=20
In the eight months to August, the company has exported=20
813,460 tonnes, an increase of 94.2 per cent from a year=20
earlier.
=20
According to the Hong Kong Standard, Mr Urip said Semen=20
Gresik's sales fell 20 to 25 per cent in the first nine=20
months of the year, and demand for cement this year is=20
likely to be between 21 and 22 million tonnes.
=20
Gresik has about 47 per cent of the total cement market in=20
Indonesia. In the first three quarters, the company=20
exported 800,000 tonnes, and it hopes to break the one=20
million tonne level before the year's end.


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J A P A N =20
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KAJIMA CORP: Projects Y28 billion loss for first half
-----------------------------------------------------
Kajima Corp, a leading Japanese construction company, said=20
it now estimates an unconsolidated net loss of 28 billion=20
yen for the first half ended September 30, as the stock-
market meltdown caused huge securities-valuation loss.

The latest estimate is considerably worse than the net=20
profit of two billion yen Kajima forecast in its initial=20
outlook in May. Kajima said the stock market's decline at=20
the Sept 30, half-year book closing left a total of 34.7=20
billion yen in valuation losses from its securities=20
holdings, which hurt its profitability in both pretax and=20
net terms.

Out of the 34.7 billion yen valuation loss, Kajima will=20
post a 10.5 billion-yen loss as part of nonoperating=20
expenses in its interim report. The remaining 24.2 billion=20
yen will show up as part of special losses, it said. The=20
company said unconsolidated pretax or recurring, profit for=20
the half is now pegged at two billion yen, lower than its=20
original outlook of three billion yen in profit.


LONG TERM CREDIT: Merger committees with Sumitomo disbanded=20
-----------------------------------------------------------
The Nihon Keizai newspaper reports Sumitomo Trust & Banking=20
Co. and Long-Term Credit Bank of Japan have decided to=20
disband committees each created to negotiate a merger, with=20
the dissolutions to occur by the end of October at the=20
earliest, sources at the two banks said Wednesday. The=20
decisions reflect the government's intention to sell LTCB's=20
assets to the highest bidder.

The two institutions announced June 26 that they would=20
begin merger negotiations and have proceeded with talks via=20
the committees. But with LTCB certain to be temporarily=20
placed under government control, Sumitomo Trust will have=20
to negotiate with the government instead of with LTCB, the=20
sources said.

Government officials have stated that Sumitomo Trust will=20
not necessarily be the buyer of LTCB assets. Long-Term=20
Credit Bank of Japan is expected to file for government=20
control by Oct. 20, with nationalization expected to occur=20
by the end of the year. Bad loans will be transferred to a=20
planned organization to be modeled after Resolution Trust=20
Corp. of the U.S.


TOKAI BANK: Writes off 70 bln yen of bad loans
----------------------------------------------
The Nihon Keizai newspaper reports Tokai Bank wrote off=20
about 70 billion yen in nonperforming loans in the first=20
half ended Sept. 30, sources at the lender said Wednesday.=20
The bank originally planned to use the full year to dispose=20
of the loans but decided to move the plan forward and=20
strengthen its financial position at the earliest=20
opportunity. Tokai now expects to liquidate more than 100=20
billion yen in bad loans in the full year.

Core business profit for the half apparently ended slightly=20
above the projected 75 billion yen. The bank was also=20
profitable on pretax and net bases, thanks in part to=20
profit from the sale of stocks. The dividend for the first=20
half will be 4.25 yen per share.


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K O R E A=20
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DAEWOO: Government threatens to suspend chaebols' credit
--------------------------------------------------------
The Korea Herald reported that senior government officials,=20
disappointed over the lack of progress of Korea's major=20
family owned conglomerated (or chaebols) to rectify=20
problems of over-capacity and bloated investments, have=20
warned that banks could cut credit lines.  Financial=20
Supervisory Commission Chairman Lee Hun-jai stated that all=20
firms related to the proposed restructuring will be=20
subjected to credit suspension or forced liquidation if=20
plans do not move forward.

Vice-Minister of Commerce, Industry and Energy Choe Hong-
geon also said that the government will reconsider the=20
sincerity of efforts made by chaebols to restructure their=20
rolling stock, ship engine, power generation, and=20
semiconductor businesses.  Such companies will be subjected=20
to workout programs initiated by financial regulators and
creditor banks, which also raises the possibility of forced=20
liquidations. =20

Additionally , the Korea Times cited the Minister of=20
Finance and Economy, Lee Kyu-sung as saying that ailing=20
chaebol units will be subjected to forced failure under a=20
creditor initiated corporate restructuring program. =20

These comments came after the top five chaebols failed to=20
reach an agreement on voluntary industrial realignment by=20
an already extended October 7 deadline.  The chaebols have=20
also reportedly scrapped plans to call in third party=20
judges to settle outstanding issues.=20

The five major Korean chaebols referred to in these reports=20
are Daewoo, Hyundai, LG, Samsung, and SK.

Specific units identified in deals which are in question=20
include Hyundai Precision & Industry Company, Hyundai Heavy=20
Industries, Hyundai Electronics Industries, and LG=20
Semiconductor.


HAITAI GROUP: Haitai units to be auctioned off
----------------------------------------------
The Korea Times reports the Haitai Group will auction off=20
two of its business units (the beverage and the=20
distribution subsidiaries) toward the end of this month. =20
The group's major creditor, the Cho Hung Bank, should
announce the results of an inspection of the assets and=20
liabilities of two Haitai subsidiaries around October 15. =20
The report also states that plans are to reduce the Haitai=20
Group to its confectionery unit by converting bank loans=20
into equity, while using funds raised from the sale of two
units to write off some of the group's debts. =20

Haitai Beverage and Haitai Stores (the distribution arm of=20
the Haitai Group) are reported to have a combined debt of=20
700 billion won. Haitai Confectionery and Haitai Industrial=20
have an estimated joint debt of 1.4 trillion won. The Korea=20
Herald reported earlier in August that Haitai's major=20
creditors (including Cho Hung Bank) have agreed to convert=20
up to 800 billion won of their loans into equity.=20

Haitai Confectionery was included on the June 19 list of 55=20
nonviable firms that were subject to immediate liquidation=20
as creditor banks are to stop providing them with new=20
loans. This list was generated at the request of the=20
Financial Supervisory Commission by the nation's 26
commercial banks which classified their business loan-
clients into three groups - normal, viable, and nonviable.


HYUNDAI: Government threatens to suspend chaebols' credit
---------------------------------------------------------
The Korea Herald reported that senior government officials,=20
disappointed over the lack of progress of Korea's major=20
family owned conglomerated (or chaebols) to rectify=20
problems of over-capacity and bloated investments, have=20
warned that banks could cut credit lines.  Financial=20
Supervisory Commission Chairman Lee Hun-jai stated that all=20
firms related to the proposed restructuring will be=20
subjected to credit suspension or forced liquidation if=20
plans do not move forward.

Vice-Minister of Commerce, Industry and Energy Choe Hong-
geon also said that the government will reconsider the=20
sincerity of efforts made by chaebols to restructure their=20
rolling stock, ship engine, power generation, and=20
semiconductor businesses.  Such companies will be subjected=20
to workout programs initiated by financial regulators and
creditor banks, which also raises the possibility of forced=20
liquidations. =20

Additionally , the Korea Times cited the Minister of=20
Finance and Economy, Lee Kyu-sung as saying that ailing=20
chaebol units will be subjected to forced failure under a=20
creditor initiated corporate restructuring program. =20

These comments came after the top five chaebols failed to=20
reach an agreement on voluntary industrial realignment by=20
an already extended October 7 deadline.  The chaebols have=20
also reportedly scrapped plans to call in third party=20
judges to settle outstanding issues.=20

The five major Korean chaebols referred to in these reports=20
are Daewoo, Hyundai, LG, Samsung, and SK.

Specific units identified in deals which are in question=20
include Hyundai Precision & Industry Company, Hyundai Heavy=20
Industries, Hyundai Electronics Industries, and LG=20
Semiconductor.


ICHON ELECTRONICS: Ichon Electronics Company liquidates
-------------------------------------------------------
The Ichon Electronics Company advertised in the Korean=20
language Maeil Kyungje that based upon the decision made at=20
the creditors' meeting on Sept. 30, 1998, it will start a=20
liquidation procedure. Creditors have until December 9,=20
1998 to file their claims. The company's address is 5-5
Hwasu-dong, Tong-gu, Inchon-shi and the representative is=20
Mr. Yi Byung-chang.


LG GROUP: Government threatens to suspend chaebols' credit
----------------------------------------------------------
The Korea Herald reported that senior government officials,=20
disappointed over the lack of progress of Korea's major=20
family owned conglomerated (or chaebols) to rectify=20
problems of over-capacity and bloated investments, have=20
warned that banks could cut credit lines.  Financial=20
Supervisory Commission Chairman Lee Hun-jai stated that all=20
firms related to the proposed restructuring will be=20
subjected to credit suspension or forced liquidation if=20
plans do not move forward.

Vice-Minister of Commerce, Industry and Energy Choe Hong-
geon also said that the government will reconsider the=20
sincerity of efforts made by chaebols to restructure their=20
rolling stock, ship engine, power generation, and=20
semiconductor businesses.  Such companies will be subjected=20
to workout programs initiated by financial regulators and
creditor banks, which also raises the possibility of forced=20
liquidations. =20

Additionally , the Korea Times cited the Minister of=20
Finance and Economy, Lee Kyu-sung as saying that ailing=20
chaebol units will be subjected to forced failure under a=20
creditor initiated corporate restructuring program. =20

These comments came after the top five chaebols failed to=20
reach an agreement on voluntary industrial realignment by=20
an already extended October 7 deadline.  The chaebols have=20
also reportedly scrapped plans to call in third party=20
judges to settle outstanding issues.=20

The five major Korean chaebols referred to in these reports=20
are Daewoo, Hyundai, LG, Samsung, and SK.

Specific units identified in deals which are in question=20
include Hyundai Precision & Industry Company, Hyundai Heavy=20
Industries, Hyundai Electronics Industries, and LG=20
Semiconductor.


MONALISA COMPANY: Granted court receivership
--------------------------------------------
The Korean language Maeil Kyungje reports that the Monalisa=20
Company, one of Korea's major tissue makers, was granted=20
court receivership by the Seoul District Court.=20


SAMSUNG GROUP: Government threatens to suspend credit
-----------------------------------------------------
The Korea Herald reported that senior government officials,=20
disappointed over the lack of progress of Korea's major=20
family owned conglomerated (or chaebols) to rectify=20
problems of over-capacity and bloated investments, have=20
warned that banks could cut credit lines.  Financial=20
Supervisory Commission Chairman Lee Hun-jai stated that all=20
firms related to the proposed restructuring will be=20
subjected to credit suspension or forced liquidation if=20
plans do not move forward.

Vice-Minister of Commerce, Industry and Energy Choe Hong-
geon also said that the government will reconsider the=20
sincerity of efforts made by chaebols to restructure their=20
rolling stock, ship engine, power generation, and=20
semiconductor businesses.  Such companies will be subjected=20
to workout programs initiated by financial regulators and
creditor banks, which also raises the possibility of forced=20
liquidations. =20

Additionally , the Korea Times cited the Minister of=20
Finance and Economy, Lee Kyu-sung as saying that ailing=20
chaebol units will be subjected to forced failure under a=20
creditor initiated corporate restructuring program. =20

These comments came after the top five chaebols failed to=20
reach an agreement on voluntary industrial realignment by=20
an already extended October 7 deadline.  The chaebols have=20
also reportedly scrapped plans to call in third party=20
judges to settle outstanding issues.=20

The five major Korean chaebols referred to in these reports=20
are Daewoo, Hyundai, LG, Samsung, and SK.

Specific units identified in deals which are in question=20
include Hyundai Precision & Industry Company, Hyundai Heavy=20
Industries, Hyundai Electronics Industries, and LG=20
Semiconductor.


SK GROUP: Government threatens to suspend chaebols' credit
----------------------------------------------------------
The Korea Herald reported that senior government officials,=20
disappointed over the lack of progress of Korea's major=20
family owned conglomerated (or chaebols) to rectify=20
problems of over-capacity and bloated investments, have=20
warned that banks could cut credit lines.  Financial=20
Supervisory Commission Chairman Lee Hun-jai stated that all=20
firms related to the proposed restructuring will be=20
subjected to credit suspension or forced liquidation if=20
plans do not move forward.

Vice-Minister of Commerce, Industry and Energy Choe Hong-
geon also said that the government will reconsider the=20
sincerity of efforts made by chaebols to restructure their=20
rolling stock, ship engine, power generation, and=20
semiconductor businesses.  Such companies will be subjected=20
to workout programs initiated by financial regulators and
creditor banks, which also raises the possibility of forced=20
liquidations. =20

Additionally , the Korea Times cited the Minister of=20
Finance and Economy, Lee Kyu-sung as saying that ailing=20
chaebol units will be subjected to forced failure under a=20
creditor initiated corporate restructuring program. =20

These comments came after the top five chaebols failed to=20
reach an agreement on voluntary industrial realignment by=20
an already extended October 7 deadline.  The chaebols have=20
also reportedly scrapped plans to call in third party=20
judges to settle outstanding issues.=20

The five major Korean chaebols referred to in these reports=20
are Daewoo, Hyundai, LG, Samsung, and SK.

Specific units identified in deals which are in question=20
include Hyundai Precision & Industry Company, Hyundai Heavy=20
Industries, Hyundai Electronics Industries, and LG=20
Semiconductor.


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M A L A Y S I A
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AMMB HOLDINGS: Proposes to recapitalise three subsidiaries
----------------------------------------------------------           =20
Singapore Business Times reports AMMB Holdings Bhd (AHB)=20
has proposed the recapitalisation of its three banking=20
subsidiaries -- Arab-Malaysian Bank Bhd (AMBB), Arab --
Malaysian Finance Bhd (AMFB) and Arab-Malaysian Merchant=20
Bank Bhd (a conditional agreements with Danamodal Nasional=20
Bhd).

It said in a statement yesterday the injection of fresh=20
capital is a pre-emptive move to enhance the resilience of=20
the Group, as it will strengthen its ability to face the=20
economic downturn.

The Group, one of five designated universal banking groups=20
in Malaysia, is  already currently a major participant in=20
the Government's move towards strengthening the financial=20
sector.


BINARIANG BHD: BT purchases stake in phone company
--------------------------------------------------
Singapore Business Times reports British Telecommunications=20
plc has completed its purchase of a third of Binariang Bhd,=20
Malaysia's third largest phone company, for 1.8 billion=20
Malaysian ringgit (S$792 million) in cash. This is the=20
British telco's first major acquisition of a full-service=20
phone company in Asia.=20

For Binariang, the sale of the stake came as Malaysian=20
companies, like those in the rest of Asia, sought fresh=20
capital to cope with recession and mounting debt. Plunging=20
currencies in the region have slashed asset prices, turning=20
them into bargains for foreign buyers like British Telecom.=20

Last week, British Telecom said it will invest =9C230 million=20
(S$645.7 million) for a 23.5 per cent stake in South=20
Korea's LG Telecom Co, to gain a foothold in the world's=20
fifth biggest mobile phone market.


DBA DISTRIBUTION SDN BHD: Winding-up petition
---------------------------------------------
AM Distribution Pte Ltd on 20/8/98 petitioned for the=20
winding-up of DBA Distribution Sdn Bhd. The petition is=20
directed to be heard on 3/12/98.


FRZA PRINT (M) SDN BHD: Voluntary winding-up
--------------------------------------------
The members of FRZA Print (M) Sdn Bhd on 5/10/98 resolved=20
to wind-up the company voluntarily. Creditors are requested=20
to submit their  claims before 8/11/98.


GREAT EASTERN ENTERPRISE (M) SDN BHD: Voluntary winding-up
----------------------------------------------------------
The members of Great Eastern Enterprise (M) Sdn Bhd on=20
30/9/98 resolved to wind-up the company voluntarily.=20
Creditors are requested to submit their claims before=20
6/11/98.


JENMAU SDN BHD: Winding-up petition=20
-----------------------------------
Shahidan & Kuan Engineering and Trading Sdn Bhd on 3/9/98=20
petitioned for the winding-up of Jenmau Sdn Bhd. The=20
petition is directed to be heard on 10/2/99.


PERNAS INTERNATIONAL: RAM lowers ratings for bonds
--------------------------------------------------
Singapore Business Times reports the ratings for Pernas=20
International Holdings Bhd's (PIHB) RM200 million =20
mortgage bonds and RM280 million secured bonds have been=20
downgraded to A3(s) from AA3(s) by Rating Agency Malaysia=20
Bhd (RAM).

RAM said in a press statement the downgrade was based on=20
the group's weakened financial position caused by=20
significantly higher debt.

Both the debt issues were put on Rating Watch with a=20
negative outlook on September 11 pending an assessment of=20
the financial impact on the introduction of a new investor=20
at one of PIHB's subsidiaries to improve its liquidity and =20
financial structure.

Additionally, the rating takes into consideration PIHB's=20
on-going restructuring of its short-term facilities with a=20
proposed issue of convertible preference shares to a new=20
investor. The shares will be backed by the value of three=20
of its unencumbered hotel assets and if successful the=20
exercise will greatly alleviate the group's tight short-
term liquidity position.


PROPILE SDN BHD: Winding-up petition
------------------------------------
Sun Enterprises on 15/7/98 petitioned for the winding-up of=20
Propile Sdn Bhd. The petition is directed to be heard on=20
11/11/98.


RENONG BHD: Asks bankers to reschedule debt
-------------------------------------------
Singapore Business Times reports Renong Bhd, which posted=20
one of Malaysia's biggest losses in the year ended June, is=20
meeting its bankers to reschedule about 7 billion Malaysian=20
ringgit (S$3.1 billion) in debt, sell assets and new=20
shares. The country's biggest group, with businesses=20
spanning financial services, oil, telecommunications and=20
construction, will announce the outcome of its discussions=20
later this week, a Renong executive said.=20

The restructuring is crucial, analysts said, and comes as=20
Renong grapples with the high interest rates that have=20
chilled demand and pushed the country into its first=20
recession in 13 years.=20

"Renong is technically insolvent, it hasn't enough=20
cashflow" to service its loans, said Fiona Leong, head of=20
research at JM Sassoon Research Sdn.=20

Renong has had to cough up about RM750 million a year to=20
service its debt, said Joshua Ng, an analyst at JM Sassoon.=20
That's about how much Renong lost in fiscal 1998.=20


REPCO HOLDINGS BHD: Subsidiary's liquidation
--------------------------------------------
Repsea Trading Pte Ltd, a Singaporean subsidiary of Repco=20
Holdings Bhd (listed on the KLSE) had resolved to wind-up=20
voluntarily. Repco does not intend to recommence operations=20
in Singapore and Repsea has been dormant for a few years.


SCK-TEN ENGINEERING SDN BHD: Winding-up petition
------------------------------------------------
Strong Mixed Concrete Sdn Bhd on 28/2/98 petitioned to=20
wind-up SCK-Ten Engineering Sdn Bhd. The petition is=20
directed to be heard on 26/10/98.


SAN-A GENERAL CORPORATION SDN BHD: Winding-up petition
------------------------------------------------------
Noble Success Sdn Bhd on 7/9/98 petitioned for the winding-
up of San-A General Corporation Sdn Bhd. The petition is=20
directed to be heard on 3/12/98.


SINARAN SDN BHD: Winding-up petition
------------------------------------
Sun Enterprises on 15/7/98 petitioned for the winding-up of=20
Sinaran Sdn Bhd. The petition is directed to be heard on=20
3/12/98.


SOUTH CHINA VENTURE SDN BHD: Winding-up petition
------------------------------------------------
Snap-on Tools Singapore Pte Ltd on 2/9/98 petitioned for=20
the winding-up of South China Venture Sdn Bhd. The petition=20
is directed to be heard on 8/12/98.


WING TIEK HOLDINGS BHD: Section 176
-----------------------------------
Wing Tiek Holdings Bhd (listed on the KLSE) and 4 of its=20
subsidiaries have obtained a restraining order from the=20
court under Section 176 of the Companies Act 1965,=20
restraining creditors from taking any action or proceedings=20
against the group.


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P H I L I P P I N E S=20
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S I N G A P O R E
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NEPTUNE ORIENT LINES: Asset plan greeted with caution
-----------------------------------------------------
Singapore Business Times reports Neptune Orient Lines' plan=20
to sell over half a billion dollars' worth of assets to=20
reduce its gearing was greeted with scepticism by market=20
players yesterday, with the stock falling 1.5 per cent to=20
33.5 cents on a day when the benchmark Straits Times Index=20
rose 3.4 per cent.=20

NOL announced on Tuesday that it is planning to sell some=20
of its assets, including its flagship NOL Building in=20
Alexandra Road, to address concerns over its high gearing=20
ratio of 6.75 and total borrowings of over $5 billion.=20

It also said it is looking to sell a small stake in APL,=20
the US shipping group it bought last year, and to re-list=20
APL in the US within two years.=20

The planned sale of assets will reduce total debt by only=20
about 8 per cent and gearing will remain above six times,=20
estimated Rachel Miu, a marine analyst at Daiwa Institute=20
of Research. "We do not foresee cashflow problems at NOL in=20
the near term but its financial position will deteriorate=20
if nothing more is done about its debt," she said.=20


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T H A I L A N D=20
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AYUDHYA INVESTMENT: Says merger report is untrue
------------------------------------------------
The Bangkok Post reports Ayudhya Investment and Trust Plc=20
(Aitco) said yesterday that reports it planned to merge=20
with its major shareholder, Bank of Ayudhya Plc, were=20
untrue. Reports of asset transfers between the two were=20
groundless, it said in a statement to the SET.

Aitco said it had received 200 million baht on September 30=20
from the Bank of Ayudhya, which recently bought Aitco=20
shares following an equity increase that raised Aitco's=20
registered capital to 800 million. The firm added that it=20
was in the process of separating its finance and securities=20
businesses, and was in preliminary negotiations with=20
potential foreign finance partners.


BANK OF AYUDHYA: S&P lowers debt ratings on 4 banks
---------------------------------------------------
The Asian Wall Street Journal reports Standard & Poor's=20
Ratings Group has lowered its ratings on the long-term debt=20
of Bank of Ayudhya PCL, Bangkok Bank PCL, and  Siam=20
Commercial Bank. S&P also lowered the long-term local=20
currency rating debt rating for the state owned Industrial=20
Finance Corporation of Thailand.

Neither the new or the old ratings were provided in the=20
report.

The ratings downgrade of the Bangkok Bank (Thailand's=20
largest commercial bank) reflects mounting non-performing=20
loans, declining collateral values and depressed=20
profitability as Thailand's recession grinds on. =20

The downgrades of Siam Commercial and the Bank of Ayudhya=20
reportedly reflect the weaker profitability of these medium=20
sized banks and their significant capitalization=20
requirements.


BANGKOK BANK PCL: S&P lowers debt ratings on 4 banks
----------------------------------------------------
The Asian Wall Street Journal reports Standard & Poor's=20
Ratings Group has lowered its ratings on the long-term debt=20
of Bank of Ayudhya PCL, Bangkok Bank PCL, and  Siam=20
Commercial Bank. S&P also lowered the long-term local=20
currency rating debt rating for the state owned Industrial=20
Finance Corporation of Thailand.

Neither the new or the old ratings were provided in the=20
report.

The ratings downgrade of the Bangkok Bank (Thailand's=20
largest commercial bank) reflects mounting non-performing=20
loans, declining collateral values and depressed=20
profitability as Thailand's recession grinds on. =20

The downgrades of Siam Commercial and the Bank of Ayudhya=20
reportedly reflect the weaker profitability of these medium=20
sized banks and their significant capitalization=20
requirements.


INDUSTRIAL FINANCE CORPORATION: S&P lowers debt ratings=20
-------------------------------------------------------
The Asian Wall Street Journal reports Standard & Poor's=20
Ratings Group has lowered its ratings on the long-term debt=20
of Bank of Ayudhya PCL, Bangkok Bank PCL, and  Siam=20
Commercial Bank. S&P also lowered the long-term local=20
currency rating debt rating for the state owned Industrial=20
Finance Corporation of Thailand.

Neither the new or the old ratings were provided in the=20
report.

The ratings downgrade of the Bangkok Bank (Thailand's=20
largest commercial bank) reflects mounting non-performing=20
loans, declining collateral values and depressed=20
profitability as Thailand's recession grinds on. =20

The downgrades of Siam Commercial and the Bank of Ayudhya=20
reportedly reflect the weaker profitability of these medium=20
sized banks and their significant capitalization=20
requirements.


PADAENG INDUSTRY: Negotiates repayment schedule
-----------------------------------------------
The Bangkok Post reports Padaeng Industry Plc, the=20
country's only zinc smelter operator, has entered into a=20
debt restructuring agreement with foreign and local=20
financial institutions that could help the company regain=20
financial and operational strength.

Padaeng and its Australian-based partner, Western Metals=20
Ltd's, yesterday signed an agreement with nine Thai and=20
foreign financial institutions to restructure Padaeng's=20
short and long term debt of 3,247 million baht.

Under the restructuring agreement, repayments will be split=20
into two tranches. The first repayment of 1,142 million=20
baht will be made within one year after the company raises=20
fresh funds through a new share issue. The second payment=20
of 2,285 million baht will be paid from the company's=20
cashflow within three and a half years.

Financial institutions involved in the debt restructuring=20
are: Bangkok Bank, Krung Thai Bank, Industrial Finance=20
Corporation of Thailand (IFCT), Government Savings Bank,=20
Chase Manhattan Bank, Fuji Bank, Mitsubishi Trust and=20
Banking, DEG Bank and Western Landesbank. Chase Manhattan=20
Bank acted as facilitator and IFCT as security agent.
SCB Advisory Service Co, Padaeng's financial advisor,=20
arranged the debt restructuring and private placement of=20
Padaeng's shares.


SIAM COMMERCIAL BANK: S&P lowers debt ratings on 4 banks
--------------------------------------------------------
The Asian Wall Street Journal reports Standard & Poor's=20
Ratings Group has lowered its ratings on the long-term debt=20
of Bank of Ayudhya PCL, Bangkok Bank PCL, and  Siam=20
Commercial Bank. S&P also lowered the long-term local=20
currency rating debt rating for the state owned Industrial=20
Finance Corporation of Thailand.

Neither the new or the old ratings were provided in the=20
report.

The ratings downgrade of the Bangkok Bank (Thailand's=20
largest commercial bank) reflects mounting non-performing=20
loans, declining collateral values and depressed=20
profitability as Thailand's recession grinds on. =20

The downgrades of Siam Commercial and the Bank of Ayudhya=20
reportedly reflect the weaker profitability of these medium=20
sized banks and their significant capitalization=20
requirements. =20


THAI OIL: Two oil giants eye stakes in Thai projects
---------------------------------------------------- =09
Malaysia's state oil firm, Petronas, and Taiwanese=20
petrochemical giant Tuntex are negotiating to acquire=20
stakes in two major industrial projects headed by Thai Oil=20
Co.

Petronas is interested in 30% of Thai Lube Base Co which is=20
building a lubricating base oil plant in Si Racha, Chon=20
Buri. Tuntex (Thailand) Plc, a subsidiary of the Taiwanese=20
company, is said to want an unspecified stake in the=20
US$231-million paraxylene plant being built by Thai=20
Paraxylene Co in Si Racha. Thai Paraxylene is owned 62% by=20
Thai Oil and 38% by Mitsubishi Oil Co of Japan.

Pala Sookawesh, governor of the Petroleum Authority of=20
Thailand (PTT), said Petronas wanted to raise its business=20
profile in Thailand after making an inroad into the=20
country's retail oil business. He said Thai Oil, owned 49%=20
by PTT, was seeking partners for its various subsidiaries=20
in order to improve liquidity and pay down debts totalling=20
$19.3 billion.


S U B S C R I P T I O N   I N F O R M A T I O N=20

Troubled Company Reporter -- Asia Pacific is a daily=20
newsletter co-published by Bankruptcy Creditors' Service,=20
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,=20
DC USA.  Debra Brennan and Lexy Mueller, Editors.

Copyright 1998.  All rights reserved.  ISSN: 1520-9482. =20

This material is copyrighted and any commercial use,=20
resale or publication in any form (including e-mail=20
forwarding, electronic re-mailing and photocopying) is=20
strictly prohibited without prior written permission of=20
the publishers.  Information contained herein is obtained=20
from sources believed to be reliable, but is not=20
guaranteed.

The TCR -- Asia Pacific subscription rate is $875 per=20
month delivered via e-mail.  Additional e-mail=20
subscriptions for members of the same firm for the=20
term of the initial subscription or balance thereof are=20
$25 each.  For subscription information, contact=20
Christopher Beard at 301/951-6400.

            * * * End of Transmission * * *