---

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 12, 1998, Vol. 1, No. 162

                    Headlines


* C H I N A   &   H O N G   K O N G *

BALI WATCH HONG KONG LIMITED: Winding-up order
GUANGDONG INTERNATIONAL: Creditors register for repayment
HUNG LI SANG KEE CONSTRUCTION: Winding-up order
J-KING DEVELOPMENT LIMITED: Winding-up order
JAPAN LEASING (HONG KONG): Notice of creditors' meeting

KWONG ON BANK: ABN Amro denies acquisition from Fuji
LUEN YING WASHING & DYEING FACTORY: Winding-up order
LUSTRE FAME LIMITED: Winding-up petition
MITSUKAWA CATERING GROUP: Winding-up order
P.D.M. COMPANY LIMITED: Winding-up petition

PROFIT EXPERT LIMITED: Winding-up petition
RADEX INDUSTRIES LIMITED: Winding-up petition
UNIVERSAL PRODUCTS: Notice of first meeting


* I N D O N E S I A *

GARUDA INDONESIA: Cuts ties with subcontractor


* J A P A N *

JUSCO COMPANY: Net profit falls 29% in first half
KOKO YAMAOKA: Five former execs of failed jeweler arrested
LONG TERM CREDIT: Sumitomo-LTCB talks flounder
MITSUBISHI TRUST: Lowers profit forecast
SANYO ELECTRIC: To slash FY98 capital spending by 38%

SANYO SHINPAN: S&P revises outlook to negative
TOKYU CORP: Moody's downgrades long-term debt
ZEXEL CORP: Posts pretax loss


* K O R E A *

HAITAI DAIRY: Applies for creditor reconciliation
NAMSUN PRECISION INDUSTRY: Starts creditor reconciliation


* M A L A Y S I A *

ASIAN EXCESS (M) SDN BHD: Winding-up petition
AUSTRAL AMALGAMATED BHD: Results - 30/6/98
CARPETS INTERNATIONAL MALAYSIA BHD: Results - 30/6/98
JITUBINA CORPORATION SDN BHD: Winding-up petition
KLUANG ORCHIDS (M) SDN BHD: Voluntary winding-up

MBF FINANCE: Still holding talks with Bank of Commerce
RENONG BHD: Proposes restructuring plan
SRI HARTAMAS BHD: Results - 30/6/98
UNIPOWER MARINE SDN BHD: Winding-up petition


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

PHILIPPINE AIRLINES: Cathay confirms interest in PAL


* S I N G A P O R E *

NEPTUNE ORIENT LINES: Clarifies statement on APL


* T H A I L A N D *

AROMATICS (THAILAND) LIMITED: Clarifies media article
BANGCHAK PETROLEUM PCL: Addresses issues of privatization
GSS/ARRAY TECHNOLOGY: Results announcement
TELECOMASIA CORPORATION: Addresses conversion of debt
THAI MILITARY BANK: Plans B6bn capital lift next year
THAI T&T: Thai Telephone may take five years to repay debts


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

BALI WATCH HONG KONG LIMITED: Winding-up order
----------------------------------------------
A winding-up order notice is hereby given that Bali Watch
Hong Kong Limited is undergoing a companies winding-up
proceedings (No 572 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on August 23, 1998. The date of
presentation of petition was April 20, 1998.    


GUANGDONG INTERNATIONAL: Creditors register for repayment
---------------------------------------------------------
The Asian Wall Street Journal reported that the creditors
of the Guangong International Trust & Investment
Corporation (GITIC), which was shut down Tuesday because of
its inability to pay maturing debt obligations, must
register with the Bank of China before January 6, 1999.  
Repayments to creditors will begin only after this date.

The Bank of China (China's central bank) also ordered
Guangfa Securities to take over GITIC's stock trading
business, and client are guaranteed the right to purchase
stocks and make withdrawals from their accounts.

GITIC was the official investment arm of the Guangdong
provincial government. GITIC was the second largest of
China's trust and investment companies, and had about $1.95
billion in foreign currency debt if all of its unit's
borrowings are included.


HUNG LI SANG KEE CONSTRUCTION: Winding-up order
-----------------------------------------------
A winding-up order notice is hereby given that Hung Li Sang
Kee Construction Company Limited is undergoing a companies
winding-up proceedings (No 580 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on September 23, 1998.  
The date of presentation of petition was August 21, 1998.    


J-KING DEVELOPMENT LIMITED: Winding-up order
--------------------------------------------
A winding-up order notice is hereby given that J-King
Development Limited is undergoing a companies winding-up
proceedings (No 589 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was August 24, 1998.    


JAPAN LEASING (HONG KONG): Notice of creditors' meeting
-------------------------------------------------------
Notice is hereby given that a meeting of the creditors of
Japan Leasing (Hong Kong) Limited (in creditors' voluntary
liquidation) will be held on 26th October, 1998 at Room
Everest, Level 5, One Pacific Place, Conference Center, 88
Queensway, Hong Kong for the purposed provided for in
Section 228A,241,242,243,244 of the companies Ordinance.


KWONG ON BANK: ABN Amro denies acquisition from Fuji
----------------------------------------------------
ABN Amro Bank has denied speculation that the company
planned to acquire all or part of Fuji Bank's share of
Kwong On Bank. A spokesman of ABN said they have not
acquired the bank. Kwong On Bank was put on credit rating
alert by Fitch IBCA on Monday when parent Fuji Bank
announced plans to sell its entire 50.1 % stake.


LUEN YING WASHING & DYEING FACTORY: Winding-up order
----------------------------------------------------
In the High Court of Hong Kong Special Administration
Region Court of First Instance, companies winding-up
proceeding (No.252 of 1998), a notice of first meetings is
hereby given that creditors and contributors of Luen Ying
Washing & Dyeing Factory Limited will meet on October 19,
1998 at the Official Receiver's Office at 10/F, Queensway
Government Offices, 66 Queensway, Hong Kong.


LUSTRE FAME LIMITED: Winding-up petition
----------------------------------------
Notice is hereby given that a petition for the winding-up
of Lustre Fame Limited by the High Court of Hong Kong was,
on the 8th day of September, 1998, presented to the said
Court by Lui Wai Ming Eddie and the petition is heard on
21st of October, 1998. Other creditors who support or
oppose the making of the order may appear at the time of
the hearing.  


MITSUKAWA CATERING GROUP: Winding-up order
------------------------------------------
A winding-up order notice is hereby given that Mitsukawa
Catering Group Limited is undergoing a companies winding-up
proceedings (No 578 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998.  The date of
presentation of petition was August 21, 1998.    


P.D.M. COMPANY LIMITED: Winding-up petition
-------------------------------------------
A winding-up order notice is hereby given that P.D.M.
Company Limited is undergoing a companies winding-up
proceedings (No 293 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on June 10, 1998. The date of
presentation of petition was May 1, 1998.    


PROFIT EXPERT LIMITED: Winding-up petition
------------------------------------------
Notice is hereby given that a petition for the winding-up
of Profit Expert Limited by the High Court of Hong Kong
was, on the 23rd day of September, 1998, presented to the
said Court by Windspeed Industrial Company and the petition
is heard on 29th of October, 1998. Other creditors who
support or oppose the making of the order may appear at the
time of the hearing.  


RADEX INDUSTRIES LIMITED: Winding-up petition
---------------------------------------------
Notice is hereby given that a petition for the winding-up
of Radex Industries Limited by the High Court of Hong Kong
was, on the 5th day of October, 1998, presented to the said
Court by Lau Wai Man and the petition is heard on 11th of
November, 1998. Other creditors who support or oppose the
making of the order may appear at the time of the hearing.  


UNIVERSAL PRODUCTS: Notice of first meeting
-------------------------------------------
In the High Court of Hong Kong Special Administration
Region Court of First Instance, companies winding-up
proceeding, a notice of first meetings is hereby given that
creditors and contributors of Universal Products (Hong
Kong)Limited will meet on October 16, 1998 at Room 103, 1st
Floor, Duke of Windsor Social Service Building, 15 Hennessy
Road, Wanchai, Hong Kong.


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

GARUDA INDONESIA: Cuts ties with subcontractor
----------------------------------------------
According to the Hong Kong Standard and the SCMP, press
reports said that troubled Indonesian national carrier
Garuda Indonesia has cut ties with seven sub-contractors,
one of which belonged to a son of ex-president Suharto.
Garuda president Robby Djohan said the state firm had
severed ties with the seven, which had landed contracts
with the airline through corrupt practices during Mr
Suharto's 32-year rule, according to the Bisnis Indonesia
daily. The reports said the move had saved US$100 million
for the airline.

According to the SCMP, Bisna confirmed a storage management
contract with Angkasa Bina Wisesa was also dropped in mid-
September, but did not name the other five.

Mr Djohan said business for stock provision, including
aeroplanes, will be carried out by open tender bidding and
no longer through intermediary brokers.

The airline is rewriting a purchase contract with Rolls-
Royce for some A-330-300 engines, which before Suharto
resigned was being carried out using the Humpuss Group
owned by Suharto's youngest son Hutomo "Tommy" Mandala
Putra, as an intermediary, Bisnis said.

Mr Djohan had said previously that Garuda would register a
400 billion rupiah loss by the year end. However he said
yesterday that by dropping the seven firms, Garuda might
have a chance to break even this year. He added that as a
part of its streamlining efforts, tomorrow some 3,000
employees would be given the option to continue working
with the firm or resign with a sizable severance pay.

Garuda has already returned some of its leased planes, sold
some of its fleet, including five DC-10s and some F-28s,
and has announced plans to lay off or transfer 5,000 of its
employees.


=========
J A P A N  
=========

JUSCO COMPANY: Net profit falls 29% in first half
-------------------------------------------------
The Nihon Keizai newspaper cites a Dow Jones report Jusco
Co., a major Japanese supermarket operator, reported
Thursday that its consolidated net profit for the first
half ended Aug. 20 tumbled 29% to 7.62 billion yen from the
same six-month term a year ago, as the stock market
weakness caused a 6.7 billion yen valuation loss from stock
holdings.

Reviewing the just-ended interim period, Jusco said stiff
competition, sagging personal consumption and unstable
weather all contributed to an even more severe business
situation. Jusco said, however, it managed to post healthy
on-year gains in revenues, operating profit and pretax
profit, as its measures to strengthen operations started to
having beneficial impact.

Jusco reported its consolidated pretax profit grew 8.9% to
26.86 billion yen on a 6.1% on-year growth in operating
revenues to 1.198 trillion yen. Its group operating profit!
climbed 15% to 30.45 billion yen.


KOKO YAMAOKA: Five former execs of failed jeweler arrested
----------------------------------------------------------
Kyodo News reports police arrested five former executives
of failed major jewelry retailer Koko Yamaoka Co. in
Yokohama, southwest of Tokyo, on suspicion of breach of
trust by making illegal profits in violation of the
Commercial Code.

The arrested five include Natsuki Homma, 62, former vice
chairman of the company, former President Norio Morishita,
46, and Yoshikuni Hara, 55, president of Japan Jewelry, an
affiliate, police said.

In a related development, Japan Jewelry filed suit with the
Yokohama District Court asking the Koko Yamaoka bankruptcy
administration to return about 300 million yen worth of
jewelry.

Koko Yamaoka went bankrupt in January last year with debts
of 48 billion yen. Police allege the five received illicit
profits from the company's affiliate by transferring
several hundred million yen of the retailer's gains
to the affiliate before the bankruptcy.

According to investigators, the five are suspected of
transferring the company's capital to the affiliate for
about three years from 1993, causing financial damage to
Koko Yamaoka of some 710 million yen.


LONG TERM CREDIT: Sumitomo-LTCB talks flounder
----------------------------------------------
According to the SCMP and the Hong Kong Standard, Sumitomo
Trust & Banking appeared to acknowledge yesterday what
Japanese politicians had already conceded, that its
proposed merger with troubled LTCB is unlikely to happen.

Sumitomo Trust president Atsushi Takahashi said Sumitomo
would dissolve its merger committee by the end of the month
and bring its responsibilities under the jurisdiction of a
new committee charged with strengthening operations.

An analyst at ING Baring Securities said that the
bottomline is that LTCB is going to be treated like any
other non-viable bank in Japan. Business daily Nihon Keizai
Shimbun reported that LTCB would probably file for
government control by October 20 and be nationalised by the
end of the year.

Analysts said LTCB's problem loans would be sold to the
Resolution Trust Corp and a management shake-up would
probably follow. Once the remnants are restored to health,
they will be sold. After the loan book is cleaned up, the
healthy assets are to be re-sold to a private institution,
which the government had hoped would be Sumitomo Trust.


MITSUBISHI TRUST: Lowers profit forecast
----------------------------------------
Reuters reports Japan's biggest trust bank, Mitsubishi
Trust & Banking Corp. on Friday lowered its profit forecast
for the first half of the current fiscal year because of
larger-than-expected charges for writing off bad loans.

Mitsubishi Trust said it estimated its loan-loss charges
had increased to 200 billion yen ($1.69 billion) in the
half-year to September 30, up from the 80 billion yen ($678
million) initially expected.

The large charge would reduce its current profit to 11
billion yen ($93 million) from an earlier projected 30
billion yen ($254 million) in the first half, the bank
said.

Mitsubishi Trust was the first major Japanese bank to
revise down its interim earnings forecast, but more
downward revisions were expected this month from other big
banks, analysts said.


SANYO ELECTRIC: To slash FY98 capital spending by 38%
-----------------------------------------------------
The Nihon Keizai newspaper reports Sanyo Electric Co. has
decided to reduce capital spending in fiscal 1998 through
March by 38% from the previous year, in a reflection of
falling domestic demand for consumer electronics, company
sources said. The move will shave some 15 billion yen off
its initial plans of consolidated capital investment,
lowering it to 98 billion yen, the first time it has been
below 100 billion yen since fiscal 1994.

The Osaka-based electronics manufacturer has revised
downward its original estimate of 7% growth in consolidated
net profit this fiscal year to a decline of more than 20%.
Capital spending will be cut almost across the board, but
semiconductor production will take the biggest hit at 7.5
billion yen, or about half the total reduction.


SANYO SHINPAN: S&P revises outlook to negative
----------------------------------------------
Standard & Poor's today revised its outlook for Sanyo
Shinpan Finance Co. Ltd. (Sanyo) to negative from stable.
Sanyo's single- 'A'-minus long-term counterparty rating was
affirmed.

Sanyo's revised outlook reflects the worsening operating
environment confronting the Japanese consumer-finance
industry. Although consumer-finance companies still enjoy
high profits they face a deterioration in asset quality
arising from the weak Japanese economy, intensified
competition, and tightened liquidity resulting from the
troubled commercial banking sector. This situation is
unlikely to improve in the near future. However, Standard &
Poor's believes that Sanyo's creditworthiness will continue
to benefit from strong capitalization and good
profitability.


TOKYU CORP: Moody's downgrades long-term debt
---------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investors Services Inc. has downgraded the long-term debt
of the Tokyu Corporation. The ratings were lowered from A1
to A3. Tokyu's shelf registration also fell from (P)A1 to
(P)A3. These ratings changes reflects concerns about
Tokyu's operating performance and debt projections.  

Tokyu Corporation is a railway company with non-railway
businesses that include the operation of department stores,
hotels, and leisure facilities.


ZEXEL CORP: Posts pretax loss
-----------------------------
The Nihon Keizai newspaper reports Zexel Corp. posted
pretax loss of 1.5 billion yen for the half-year ended
Sept. 30, compared with 3.5 billion yen in profit a year
earlier, company officials reported Thursday. The
disappointing turnaround is attributed to lower sales of
fuel injection pumps for diesel engines due to weak truck
demand.

With the addition of extraordinary profit from the sale of
car navigation operations in the U.S., however, the firm's
net account will break even, against net profit of 2.3
billion yen last year. The firm will suspend payment of an
interim dividend.


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

HAITAI DAIRY: Applies for creditor reconciliation
-------------------------------------------------
The Korean language Maeil Kyungje reports that Haitai Dairy
Company has applied for creditor reconciliation to the
Suwon District Court. The company could not repay a note
for 5.36 billion won due on October 7, 1998 and decided to
apply for creditor reconciliation.

A similar story in the Asian Wall Street Journal reports
that trade of this company's shares were suspended on the
Korean stock exchange after it failed to pay $3.9 million
in loans to local Korean banks. Trading of this company's
shares is to resumed Saturday under the supervision of the
exchange.


NAMSUN PRECISION INDUSTRY: Starts creditor reconciliation
---------------------------------------------------------
The Taejon District Court advertised in the Korean language
Maeil Kyungje that the Namsun Precision Industry Company
started its creditor reconciliation procedure. Creditors
have until November 7, 1998 to file their claims. The
company's address is 42-5 Munpyong-dong Taeduk-gu, Taejon-
shi and the president is Mr. Son Jong-kwan.


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

ASIAN EXCESS (M) SDN BHD: Winding-up petition
---------------------------------------------
Progressive Insurance Sdn Bhd on 10/8/98 petitioned for the
winding-up of Asian Excess (M) Sdn Bhd. The petition is
directed to be heard on 4/12/98.


AUSTRAL AMALGAMATED BHD: Results - 30/6/98
------------------------------------------
Austral Amalgamated Bhd (listed on the KLSE) posted a pre-
tax loss of RM274.49mil for the year ended 30/6/98 compared
to a pre-tax profit of RM25.42mil previously. Net loss per
share rose from 91.6sen to 139.5sen during the same period.


CARPETS INTERNATIONAL MALAYSIA BHD: Results - 30/6/98
-----------------------------------------------------
Carpets International Malaysia Bhd posted a group pre-tax
loss of RM3.15mil for the6months ended 30/6/98, compared to
a pre-tax loss of RM0.79mil previously.


JITUBINA CORPORATION SDN BHD: Winding-up petition
-------------------------------------------------
RZA Forwarding Sdn Bhd on 13/8/98 petitioned for the
winding-up of Jitubina Corporation Sdn Bhd.


KLUANG ORCHIDS (M) SDN BHD: Voluntary winding-up
------------------------------------------------
The members of Kluang Orchids (M) Sdn Bhd on 5/10/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
9/11/98.


MBF FINANCE: Still holding talks with Bank of Commerce
------------------------------------------------------
Singapore Business Times reports the role of Danamodal
Nasional Bhd in the recapitalisation of MBf Finance
Bhd does not preclude the finance company from entering
into negotiations with interested third parties.

A conditional agreement between MBf Finance and Danamodal
was recently signed to pave the way for the agency to
undertake the recapitalisation of MBf Finance.

Meanwhile, the company has embarked on a restructuring
exercise to focus on its core business and manage its non-
performing loans (NPLs) and the challenges of the economic
environment to enable it to secure a strong and competitive
position when the economy recovers.

The measures taken so far include business process re-
engineering, a voluntary separation scheme, followed by a
complete restructuring of its organisation structure and a
strategic effort to embrace technology through the rollout
of the new MBf banking system.


RENONG BHD: Proposes restructuring plan
---------------------------------------
Malaysia's giant Renong Bhd. plans to propose a state-
backed restructuring plan to help the group settle part of
its debt burden and revive several of its struggling
infrastructure ventures. Bankers familiar with the proposal
say that the government will issue 10 million ringgit in
bonds through a special state agency, yet to be created.

Renong and its associate, United Engineers Malaysia Bhd.
(UEM) will use the government paper as payment to settle
part of group's debt burden, which is currently estimated
at 20 billion ringgit, or about 8% of total loans in the
country's banking system.

The plan, Project Rome and prepared by investment banker
Credit Suisse First Boston, is notable for its innovation:
the bonds will be backed by future income from
infrastructure projects in the Renong stable, and also by
some of the group's assets. The proposal is almost certain
to raise controversy. The government's close involvement in
the proposed financial rescue of the group is likely to
ignite criticism that Kuala Lumpur is continuing to bail
out politically well-connected groups.  


SRI HARTAMAS BHD: Results - 30/6/98
-----------------------------------
Sri Hartamas Bhd (listed on the KLSE) posted a pre-tax loss
of RM395.18mil for the year ended 30/6/98 compared to a
pre-tax profit of RM80.74mil previously. Group loss per
share was 45.72sen, down from an EPS of 6.35sen.


UNIPOWER MARINE SDN BHD: Winding-up petition
--------------------------------------------
Sime Bank Bhd on 29/7/98 petitioned for the winding-up of
Unipower Marine Sdn Bhd. The petition is directed to be
heard on 13/11/98.


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

PHILIPPINE AIRLINES: Cathay confirms interest in PAL
----------------------------------------------------
According to the Hong Kong Standard, Cathay Pacific Airways
last night confirmed that it was negotiating with PAL
majority owner Lucio Tan in taking a stake in the troubled
airlines.

A spokeswoman for Cathay said that the company's
accountants were in Manila for a due diligence check on
PAL. She, however, was quoted as saying that a decision
would not be made in a short period of time. The report
said that no announcement will be made in the next few
weeks.

Another spokesman for the company said Cathay would only
pursue a stake in PAL if it would yield substantial
benefits, but refused to say what percentage or under what
terms Cathay Pacific's involvement would be.

PAL needs a strategic foreign partner to inject new capital
as part of its rehabilitation program, which also includes
fleet reduction, manpower adjustments and the restructuring
of its US$2 billion debts.

Philippine laws allow foreign ownership of up to 40 per
cent in the local airline industry.

Airline officials earlier said they hoped a new investor
would be on board before a Nov. 21 deadline set by the
Securities and Exchange Commission for the submission of
the rehabilitation plan.


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

NEPTUNE ORIENT LINES: Clarifies statement on APL
------------------------------------------------
Neptune Orient Lines yesterday clarified that it has not
entered into any discussion to sell a minority stake in
American shipping line APL Ltd which it acquired last year,
nor has it rejected an offer because it could not agree on
the price.

The national carrier was responding to news reports, both
in the local press and on the wires, that it had discussed
the sale of a stake in APL with at least one party.


===============
T H A I L A N D
===============

AROMATICS (THAILAND) LIMITED: Clarifies media article
-----------------------------------------------------
With respect to the media's article, "PTT Announces
Tuntex's Interest in Buying ATC", Aromatics (Thailand)
Limited (ATC) would like to clarify any possible
misconceptions. Tuntex, an aromatics product offtaker of
ATC, via PTT, has shown interest in investing into equity
shares of ATC, however, Tuntex has yet to begin formal
discussions into the details of the matter.

Moreover, the search for new shareholders for ATC is an
initiative which was taken up by The Petroleum Authority of
Thailand (PTT), a major shareholder of ATC. Once all of
PTT's studies and considerations have been completed and
finalized, ATC will then make a formal public announcement
to the S.E.T., if warranted.


BANGCHAK PETROLEUM PCL: Addresses issues of privatization
---------------------------------------------------------
Bangchak Petroleum PCL has notified the SET it wishes to
correct media reports concerning its privatization and
liquidity.

On the privatization issue, the Subcommittee chaired by the
Permanent Secretary, Ministry of Finance, on August 25,
concluded that BCP's privatization should follow the
guideline policy given by the State Enterprise Policy
Committee on June 18, 1998, and the implementation should
be in two steps. In the first step, to sale of share 24%
belonging to PTT and 7-8% of The Krung Thai Bank or
Ministry of Finance to privatize the company as soon as
possible. The second step, to recapitalize the company
shall be considered after the privatization.

Before proceeding to any implementation, the Ministry of
Finance will submit the above plan to the State Enterprise
Policy Committee chaired by the Deputy Prime Minister Dr.
Supachai Panitchapakdi for consideration.

In terms of BCP's liquidity, the company asserts it has
always had excellent liquidity. Since the beginning of
Thailand's financial crisis in 1997, BCP has maintained
strong financial status keeping cash on hand at high level
at all time. As of the end of third quarter of 1998, BCP
has cash deposited of more than 2,000 million baht.


GSS/ARRAY TECHNOLOGY: Results announcement
------------------------------------------
Consolidated sales for the third quarter ended August 24th,
1998 were 2,271,372 thousand baht compared with 1,899,293
thousand baht for the third quarter 1997. During the
quarter the company was affected by the worldwide slowdown
in the electronic industry, which led many of our customers
to defer projected usage of our manufacturing capacity. Net
loss after tax but before the reversal of deferred tax was
55,125 thousand baht for the quarter, compared with net
loss of 100,588 thousand baht in quarter 3, 1997. In
compliance with International Accounting Standard (IAS 12),
the company also reversed an accumulated deferred tax asset
of 79,943 thousand baht, for a net after tax loss of
135,068 thousand baht.

The company's liquidity was adversely affected in the third
quarter by problems encountered by a new customer. GSS had
shipped a substantial number of product for which the
customer has been unable to render payment. GSS expects
this issue to be resolved in the first quarter fiscal year
1999, and through better working capital management across
our customer base, to enjoy improved liquidity going
forward.


TELECOMASIA CORPORATION: Addresses conversion of debt
-----------------------------------------------------
We refer to the news reported in a certain daily newspapers
dated October 9, 1998 regarding the conversion of debt of
TOT or concession into capital. TelecomAsia Corporation
Public Company Limited would like to inform that such news
appear to be a process of privatization being considered by
Ministry of Transport and Communications and the Telephone
Organization of Thailand (TOT). TOT has neither informed
nor consulted with the Company on this matter.


THAI MILITARY BANK: Plans B6bn capital lift next year
-----------------------------------------------------
The Bangkok Post reports Thai Military Bank will increase
capital by six billion baht next year and seek additional
capital support from the government, bank directors agreed
yesterday. The capital increase will raise the bank's
capital-to-risk assets ratio from 9.07% to 10.5%. Paid-up
capital now stands at 10.15 billion baht, deemed
insufficient to cope with expected write-offs of loan
losses for several quarters.

The bank will issue 600 million new shares by mid-1999,
with 400 million shares issued through private placement
and the remainder used to back new convertible subordinated
bonds. Two-billion-baht worth of convertible subordinated
bonds will be issued by the end of the year, sold to local
and foreign investors.


THAI T&T: Thai Telephone may take five years to repay debts
-----------------------------------------------------------
The Asian Wall Street Journal reported that Thai Telephone
and Telecommunications (TT&T) PCL's top executive has
announced his resignation and that TT&T make take as long
as five years before it can be able to resume payments on
its outstanding loans. TT&T's debt restructuring plan will
also not be completed for at least six months.

This restructuring should include debt rescheduling and
perhaps debt to equity conversions. TT&T reportedly has 21
billion baht ($541.9 million) in loans, plus another $418
million in foreign debt. Although it is unable to service
the principal on all of its debt, it is paying interest
on some loans.  

TT&T holds a government concession to install and operate
1.5 million new phone lines outside of Bangkok, and has
complete the installation of 1.1 million of these lines.  
However, due to the Thai economic recession, it was earlier
reported that monthly new phone subscription rates have
fallen by 95 percent and income per line has fallen 20
percent.  


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

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

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

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