/raid1/www/Hosts/bankrupt/TCRAP_Public/981019.MBX 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 19, 1998, Vol. 1, No. 167

                    Headlines


* C H I N A   &   H O N G   K O N G *

BEST CENTURY HOLDINGS LIMITED: Winding-up order
COLOUR PROFIT: Winding-up petition
ESPIRIT HOLDINGS: Warning of large provision
FIRST PACIFIC: Unit to sell stake in fitness centers
FULL COUNTRY DEVELOPMENT LIMITED: Winding-up petition

GITIC: PBOC tackles Gitic debt puzzle
GRANDMART WAREHOUSE CLUB LIMITED: Winding-up order
GRANDWIDE INVESTMENT LIMITED: Winding-up order
GZITIC: Gzitic fails on US$30m payment
HWA KEE PILING & CONSTRUCTION: Winding-up petition

INTERNA ASIA LIMITED: Notice of creditors' meeting
JUSCO STORES: Results announcement
LEIGHTON INTERNATIONAL LIMITED: Winding-up order
OCEAN HORIZON LIMITED: Winding-up order
PALIBURG HOLDINGS: Talks to offload share of Regal

SUNTEX HOLDINGS LIMITED: Notice of first meetings
THEME INTERNATIONAL: Reaches standstill agreement
WIN EXCEL LIMITED: Winding-up petition


* J A P A N *

DAI-ICHI KANGYO BANK: To sell half its stake in CIT Group
NOMURA SECURITIES: Shares plunge 10%


* K O R E A *

DAEWOO GROUP: Chaebols to raise funds to lower debt
DONG AH CONSTRUCTION: Funds detailed to lower debt
HANBO ENERGY: Liquidation approved by court
HYUNDAI GROUP: Chaebols to raise funds to lower debt
LG GROUP: Chaebols to raise funds to lower debt
SAMSUNG GROUP: Chaebols to raise funds to lower debt
TAEYANG-I & TECH: Trade may be suspended  


* M A L A Y S I A *

MUDA HOLDINGS BHD: Results - 30/6/98
MULPHA INTERNATIONAL BHD: Results - 30/6/98
NAM FATT CORPORATION BERHAD: Results - 30.6.1998
NEICO INDUSTRIES (M) BHD: Results - 30/6/98
ORLANDO HOLDINGS BHD: Results - 30/6/98

PDZ HOLDINGS BHD.: Results - 30/6/98
PERAK CORPORATION BHD: Results - 30/6/98
RENONG BHD: Defaults on obligations worth $3.17 million
RENONG BHD: Results - 30/6/98


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

EMPIRE EAST LAND: Creditors agree to convert loans
PHILIPPINE AIRLINES: Creditors demand return of Boeings


* T H A I L A N D *

ASIA CEMENT: La Farge aims to buy big stake in Asia Cement
BANGKOK BANK: Termination of management agreement of BBC
BIJOUX HOLDINGS: Extension for turnaround plan
CAPETRONIC INTERNATIONAL: Turnaround plan boosts company
SIAM NISSAN AUTO: Brakes put on SNA-Nissan deal

WONGPAITOON GROUP: Promises disclosure on lending practices


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

BEST CENTURY HOLDINGS LIMITED: Winding-up order
-----------------------------------------------
A winding-up order notice is hereby given that Best Century
Holdings Limited is undergoing a companies winding-up
proceedings (No 600 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 30, 1998. The date of
presentation of petition was August 27, 1998.    


COLOUR PROFIT: Winding-up petition
----------------------------------
Notice is hereby given that a petition for the winding-up
of Colour Profit (t/a Fortune Air Cargo Limited) by the
High Court of Hong Kong was, on the 24th day of September,
1998, presented to the said Court by Thyssen Haniel
Logistics (HK) Ltd 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.  


ESPIRIT HOLDINGS: Warning of large provision
--------------------------------------------
Espirit Holdings, a Hong Kong based retailer, warned
investors to expect large provision if its year-end
results. Chairman Michael Ying said they expect that there
will be some provision would be made in the annual results
as against the closing of the company's stores in Japan and
Korea and some equity investments.

Investment Bank Warburg Dillon Read forecast recently that
Espirit's provisions for long-term equity investments alone
were likely to reach $150 million. Mr Ying said the
Japanese joint venture had been dissolved and all the
stores closed, while eight Espirit outlets remained in
Korea.    


FIRST PACIFIC: Unit to sell stake in fitness centers
----------------------------------------------------
First Pacific Co said one of its units is selling a 50%
stake in ray Wilson California Fitness Centers in Hong Kong
and Singapore to its partner , Ray Wilson California
Fitness Ltd. The company said in a statement that the sale
by First Pacific's FPD Sportathlon unit will lead to an
exceptional gain of about US$5 million. It added that the
sale is in line with First Pacific strategy of
consolidating.


FULL COUNTRY DEVELOPMENT LIMITED: Winding-up petition
-----------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Full Country Development Limited by the High Court of
Hong Kong was, on the 30th day of September, 1998,
presented to the said Court by Wong Wai Ming and the
petition is heard on 4th of November, 1998. Other creditors
who support or oppose the making of the order may appear at
the time of the hearing.  


GITIC: PBOC tackles Gitic debt puzzle
-------------------------------------
According to the SCMP, the People's Bank of China (PBOC)
said yesterday it was studying ways to cover the
unregistered foreign debts of collapsed Guangdong
International Trust and Investment Corp (Gitic).

No decision had been made but the central bank would issue
a statement shortly to clarify repayment details.

The PBOC official said they arrived at a solution needed to
take into account the complexities and legal problems
associated with debts that were not registered with the
State Administration of Foreign Exchange (Safe).

The unregistered debts should amount to at least $3.5
billion, or a third of the Hong Kong Monetary Authority's
assessment of $11 billion in direct exposure and contingent
guarantees by more than 80 banks in Hong Kong.

According to the Hong Kong Standard, creditor banks of
collapsed Gitic will today try to map out ways and means of
thrashing out with Beijing its controversial stance of
selectively paying debts and other obligations incurred by
Gitic. Executives of a law firm will be present to provide
support to creditor banks.

Beijing's stance on Gitic debts that will take priority in
repayments is expected to be among the major items for
discussion in today's meeting of Gitic creditor banks.

One of the biggest concerns facing creditor banks is the
possibility that locally listed Gitic Holdings Hong Kong
has few assets which means getting compensation would be
difficult, especially with Beijing's selective stance of
honoring Gitic debts.


GRANDMART WAREHOUSE CLUB LIMITED: Winding-up order
--------------------------------------------------
A winding-up order notice is hereby given that Grandmart
Warehouse Club Limited is undergoing a companies winding-up
proceedings (No 583 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on October 5, 1998. The date of
presentation of petition was August 24, 1998.    


GRANDWIDE INVESTMENT LIMITED: Winding-up order
----------------------------------------------
A winding-up order notice is hereby given that Grandwide
Investment Limited is undergoing a companies winding-up
proceedings (No 608 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on October 7,1998. The date of
presentation of petition was August 31, 1998.    


GZITIC: Gzitic fails on US$30m payment
--------------------------------------
According to the SCMP, another mainland government fund-
raising arm ran into trouble yesterday over foreign-debt
repayments. Guangzhou International Trust & Investment Corp
(Gzitic), the financing arm of the Guangzhou municipal
government missed a payment on a US$30 million loan by
SocGen Asia, part of French banking group Societe Generale.
SocGen Asia head of China Maurice Nhan confirmed yesterday
about the delay as there was need to take more time for
approvals for the conversion into foreign currencies.

Gzitic's Hong Kong-listed arm, the 57.8 per cent-held
Gzitic Hualing Holdings, had its shares and warrants
suspended yesterday at the company's request.

The news intensified speculation that Guangdong Itics
(international trust and investment corp) will be among the
first to face the axe as Beijing slashes the number of such
companies from 240 to about 40 in an ongoing clean-up of
the sector.

Mr Nhan said he did not believe Gzitic would be a target of
the government clean-up campaign. Other bankers said a
liquidity problem was also to blame for the default.
Repayment was extended for 10 days until Sept 30.

A Guangzhou government official said it had been discussing
solutions to the problem. A meeting in Guangzhou would be
arranged between government officials and the banks
involved next week to sort out the debt payment issue.

Gzitic owes foreign banks outstanding loans and guarantees
worth $266.2 million, excluding bilaterals and a small
amount of repayments, out of $6.3 billion for the whole
Itic sector, according to local debt market newsletter
Basis Point.

Gzitic Hualing Holdings financial controller Roger Law Siu-
wo said the loss-making firm was financially sound. Its
debt amounted to about HK$600 million, all raised from
mainland banks, and cash of more than HK$100 million.

Chase Manhattan (Asia) managing director Leonard Wei said
banks should not be over-nervous because mainland
authorities had made it clear that deals done above board
would be repaid.

According to the Hong Kong Standard, Gzitic had failed
repayment of its syndicated loans. A red-chip analyst said
it would not be surprising if Gzitic's liabilities were
found to be more than the US$30 million. The analyst said
Gzitic was given less importance by the Guangzhou city
government than its other commercial arm. Because of this,
Gzitic would only be about half or a third the size of
Gitic and its liabilities would probably be a lot less than
Gitic's, although these could amount to several hundred
million US dollars. He said Gzitic's bankers could either
opt to restructure the loans to the company or seize its
assets if its loans are secured.

A foreign banker said the Itic's application to buy foreign
exchange to pay back its foreign debt had been rejected by
the Bank of China following an inspection of the Itic's
balance sheet which showed that it was suffering from a
deficit as its liabilities exceeded its available assets.


HWA KEE PILING & CONSTRUCTION: Winding-up petition
--------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Hwa Kee Piling & Construction Company Limited by the
High Court of Hong Kong was, on the 23rd day of September,
1998, presented to the said Court by Chan Sun Kee
Engineering 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.  


INTERNA ASIA LIMITED: Notice of creditors' meeting
--------------------------------------------------
Notice is hereby given that a meeting of the creditors of
Interna Asia Limited (in technical creditors' voluntary
liquidation) will be held on 26th October, 1998 at 22/F.,
Hing Yip Commercial Center, 272-284 Des Voeux Road Central,
Hong Kong for the purposed provided for in Section 241 of
the companies Ordinance.


JUSCO STORES: Results announcement
----------------------------------
Jusco Stores (Hong Kong) said yesterday a stock clearance
sale and the under performance of two new outlets led to
its first interim loss. The department store operator
announced an interim net loss of $19.3 million for the six
months ending August 31, compared with a net interim profit
of $29 million for the same period last year. Managing
director Sozaburo Yamazaki said owing the loss was owing to
a downturn and weak consumer sentiment in Hong Kong. Mr
Yamazaki said stores would continue to exercise cost
controls and negotiate rent reduction.


LEIGHTON INTERNATIONAL LIMITED: Winding-up order
------------------------------------------------
A winding-up order notice is hereby given that Leighton
International Limited is undergoing a companies winding-up
proceedings (No 611 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on October 7, 1998. The date of
presentation of petition was August 31, 1998.    


OCEAN HORIZON LIMITED: Winding-up order
---------------------------------------
A winding-up order notice is hereby given that Ocean
Horizon Limited is undergoing a companies winding-up
proceedings (No 609 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on October 7, 1998. The date of
presentation of petition was August 31, 1998.    


PALIBURG HOLDINGS: Talks to offload share of Regal
--------------------------------------------------
Paliburg Holdings was suspended at the company's request
following its announcement that it was negotiating the sale
of a considerable portion of its 74.8 % in Regal Hotels
International.

The stock exchange was informed that Paliburg has entered
into discussions with certain parties in relation to
Paliburg Group's shareholding in Regal. A spokesman for the
company said it was too early to disclose any details of
the possible deal. A number of analysts said any deal was
likely to involve United States or European interests.
Regal Hotels International Holdings owns a number of hotels
in Hong Kong, the mainland and the US.

Analysts suspect Paliburg was attempting to offload its
shares in Regal to raise money to cover losses incurred by
Chi Cheung Investment. Chi Cheung Investment is 74.06 %
controlled by Rapid Growth, which in turn is 50% owned by
Paliburg. Chi Cheung Investment reported losses of $316.3
million for the first six months. Some speculate that the
company was selling assets in order to boost cash flow.
Paliburg reported a net loss of $609.7 million for this
year's interim results.


SUNTEX HOLDINGS LIMITED: Notice of first meetings
-------------------------------------------------
In the High Court of Hong Kong Special Administration
Region Court of First Instance, companies winding-up
proceeding (No.456 of 1998), a notice of first meetings is
hereby given that creditors and contributors of Suntex
Holdings Limited will meet on October 27, 1998 at the
Official Receiver`s Office at 10/F, Queensway Government
Offices, 66 Queensway, Hong Kong.


THEME INTERNATIONAL: Reaches standstill agreement
-------------------------------------------------
The Asian Wall Street Journal reports that Theme
International Holdings Ltd. has reached a standstill
agreement with 11 out of its 12 creditors. This agreement
will reportedly allow this retailer to remain solvent and
continue to operate its retail outlets. These formal
standstill agreements between Theme and its subsidiaries
(excluding Taiwan Vistion Company and Wescorp Ltd. and
their subsidiaries) were made to provide stability while
the group restructures.  

The creditors have agreed not to take action or demand
payment on HK$242 million in debts, and will not seize
collateral or force Theme to liquidate. The report mentions
that a 12th creditor which is owed HK$19 million is also
considering a similar agreement.


WIN EXCEL LIMITED: Winding-up petition
--------------------------------------
Notice is hereby given that a petition for the winding-up
of Win Excel Limited by the High Court of Hong Kong was, on
the 25th day of September, 1998, presented to the said
Court by Opala Development Co Ltd 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.  


=========
J A P A N  
=========

DAI-ICHI KANGYO BANK: To sell half its stake in CIT Group
---------------------------------------------------------
The Nihon Keizai newspaper reports Dai-Ichi Kangyo Bank has
decided to sell about half its stake in its U.S. finance
subsidiary, CIT Group Inc., sources said Thursday. The bank
will use proceeds from the sale - estimated at about 150
billion yen - to deal with bad loans and improve its own
financial health. DKB now holds a 77% stake in the unit.
After the sale, its share will be about 40%.

CIT Group is the eighth-largest nonbank financial
institution in the U.S. DKB bought a majority of the firm's
stock in 1989 from a major U.S. bank, later increasing its
stake. CIT Group was listed on the New York Stock Exchange
in the fall of 1997.


NOMURA SECURITIES: Shares plunge 10%
------------------------------------
The Nihon Keizai newspaper reports Nomura Securities Co.
stock fell 82 yen Thursday to close at 827 yen. A rumor
that a Nomura U.S. unit had suffered a loss on real estate-
backed securities was one cause cited for the issue's
plunge.


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

DAEWOO GROUP: Chaebols to raise funds to lower debt
---------------------------------------------------
The Korea Times provided details of the amount of funds
that four of Korea's largest family owned conglomerates (or
chaebols) need to raise in order to reduce their debt to
equity ratios below 200 percent by the year 2000, as
demanded by the government.

The information, from the Korea Stock Exchange, estimates
the amount of money raised via rights offerings on the
stock market which would increase these companies paid in
capital to the point that it would pull down their debt to
equity ratios below 200 percent.  

However, the report pointed out that these companies will
have to first take restructuring measures in order to
attract the capital. Individual group, corporations, and
paid in capital requirements cited in the article are
provided below.

Major Groups

  Daewoo Group                      6.09 trillion won
  Hyundai Group                    10.02 trillion won
  LG Group                          5.62 trillion won
  Samsung Group                     3.99 trillion won

Individual Corporations

  Daewoo Corporation                3.2 trillion won
  Dong Ah Construction              1.29 trillion won
  Hyundai Construction              1.82 trillion won
  Samsung Corporation               1.28 trillion won


DONG AH CONSTRUCTION: Funds detailed to lower debt
--------------------------------------------------
The Korea Times provided details of the amount of funds
that four of Korea's largest family owned conglomerates (or
chaebols) need to raise in order to reduce their debt to
equity ratios below 200 percent by the year 2000, as
demanded by the government.

The information, from the Korea Stock Exchange, estimates
the amount of money raised via rights offerings on the
stock market which would increase these companies paid in
capital to the point that it would pull down their debt to
equity ratios below 200 percent.  

However, the report pointed out that these companies will
have to first take restructuring measures in order to
attract the capital. Individual group, corporations, and
paid in capital requirements cited in the article are
provided below.

Major Groups

  Daewoo Group                      6.09 trillion won
  Hyundai Group                    10.02 trillion won
  LG Group                          5.62 trillion won
  Samsung Group                     3.99 trillion won

Individual Corporations

  Daewoo Corporation                3.2 trillion won
  Dong Ah Construction              1.29 trillion won
  Hyundai Construction              1.82 trillion won
  Samsung Corporation               1.28 trillion won


HANBO ENERGY: Liquidation approved by court
-------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Hanbo Energy Company's liquidation
plan was approved by the court. The company's
representative is Mr. Chung Chol.


HYUNDAI GROUP: Chaebols to raise funds to lower debt
----------------------------------------------------
The Korea Times provided details of the amount of funds
that four of Korea's largest family owned conglomerates (or
chaebols) need to raise in order to reduce their debt to
equity ratios below 200 percent by the year 2000, as
demanded by the government.

The information, from the Korea Stock Exchange, estimates
the amount of money raised via rights offerings on the
stock market which would increase these companies paid in
capital to the point that it would pull down their debt to
equity ratios below 200 percent.  

However, the report pointed out that these companies will
have to first take restructuring measures in order to
attract the capital. Individual group, corporations, and
paid in capital requirements cited in the article are
provided below.

Major Groups

  Daewoo Group                      6.09 trillion won
  Hyundai Group                    10.02 trillion won
  LG Group                          5.62 trillion won
  Samsung Group                     3.99 trillion won

Individual Corporations

  Daewoo Corporation                3.2 trillion won
  Dong Ah Construction              1.29 trillion won
  Hyundai Construction              1.82 trillion won
  Samsung Corporation               1.28 trillion won


LG GROUP: Chaebols to raise funds to lower debt
-----------------------------------------------
The Korea Times provided details of the amount of funds
that four of Korea's largest family owned conglomerates (or
chaebols) need to raise in order to reduce their debt to
equity ratios below 200 percent by the year 2000, as
demanded by the government.

The information, from the Korea Stock Exchange, estimates
the amount of money raised via rights offerings on the
stock market which would increase these companies paid in
capital to the point that it would pull down their debt to
equity ratios below 200 percent.  

However, the report pointed out that these companies will
have to first take restructuring measures in order to
attract the capital. Individual group, corporations, and
paid in capital requirements cited in the article are
provided below.

Major Groups

  Daewoo Group                      6.09 trillion won
  Hyundai Group                    10.02 trillion won
  LG Group                          5.62 trillion won
  Samsung Group                     3.99 trillion won

Individual Corporations

  Daewoo Corporation                3.2 trillion won
  Dong Ah Construction              1.29 trillion won
  Hyundai Construction              1.82 trillion won
  Samsung Corporation               1.28 trillion won


SAMSUNG GROUP: Chaebols to raise funds to lower debt
----------------------------------------------------
The Korea Times provided details of the amount of funds
that four of Korea's largest family owned conglomerates (or
chaebols) need to raise in order to reduce their debt to
equity ratios below 200 percent by the year 2000, as
demanded by the government.

The information, from the Korea Stock Exchange, estimates
the amount of money raised via rights offerings on the
stock market which would increase these companies paid in
capital to the point that it would pull down their debt to
equity ratios below 200 percent.  

However, the report pointed out that these companies will
have to first take restructuring measures in order to
attract the capital. Individual group, corporations, and
paid in capital requirements cited in the article are
provided below.

Major Groups

  Daewoo Group                      6.09 trillion won
  Hyundai Group                    10.02 trillion won
  LG Group                          5.62 trillion won
  Samsung Group                     3.99 trillion won

Individual Corporations

  Daewoo Corporation                3.2 trillion won
  Dong Ah Construction              1.29 trillion won
  Hyundai Construction              1.82 trillion won
  Samsung Corporation               1.28 trillion won


TAEYANG-I & TECH: Trade may be suspended  
----------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief Section, Korean Stock Exchange plans to suspend the
trade of Taeyang-I & Tech company if the company fails to
submit an operation normalization program by October 21,
1998.


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

MUDA HOLDINGS BHD: Results - 30/6/98
------------------------------------
Muda Holdings Bhd (listed on the KLSE) reported a post-tax
loss of RM0.684mil for the 6months ended 30/6/98, compared
to a post-tax profit of RM1.016mil previously. EPS fell
from 0.8sen to 0.2sen during the same period.


MULPHA INTERNATIONAL BHD: Results - 30/6/98
-------------------------------------------
Mulpha International Bhd (listed on the KLSE) reported a
post-tax loss of RM16.078mil for the 6months ended 30/6/98,
compared to a post-tax profit of RM31.290mil previously.
EPS fell from 3.57sen to a loss per share of 1.82sen during
the same period.


NAM FATT CORPORATION BERHAD: Results - 30.6.1998
------------------------------------------------
Nam Fatt Corporation Bhd. (listed in KLSE) reported a post
taxed loss of RM28.965 mil for the 6 months ended 30.6.98,
compared to a post tax profit of RM27.186 mil. EPS fell
from RM0.25 to a loss per share of RM0.34 during the same
period.


NEICO INDUSTRIES (M) BHD: Results - 30/6/98
-------------------------------------------
Neico Industries (M) Bhd. (listed in KLSE) reported a post
tax loss of RM2.457 mil for the (6) months ended 30.6.98  
compared to a post tax profit of RM2.099 mil in the
previous year. EPS has dropped from RM0.1039 last year
compared to a loss of RM0.1217 this year.


ORLANDO HOLDINGS BHD: Results - 30/6/98
---------------------------------------
Orlando Holdings Bhd. (listed in KLSE) reported a post tax
loss of RM9.392 mil for the 6 months ended 30.6.98 compared
to a post tax loss of RM1.658 mil previously. Loss per
share rose from 7.77sen to 46.96sen during the period.


PDZ HOLDINGS BHD.: Results - 30/6/98
----------------------------------
PDZ Holdings Bhd. (listed in KLSE) reported a post tax loss
of RM70.714 mil for the year ended 30.6.98 compared to a
post tax profit of RM18.104 mil in the previous year. EPS
for the previous year was RM0.37 dropped to a loss of
RM1.43 per share this year.


PERAK CORPORATION BHD: Results - 30/6/98
----------------------------------------
Perak Corporation Bhd. (listed in KLSE) reported a post tax
loss of RM4.692 mil for the (6) months ended 30.6.98
compared to a post tax profit of RM12.658 mil in the
previous year. EPS in the previous year was recorded at
RM0.25 compared to a loss of RM0.0224 per share this year.


RENONG BHD: Defaults on obligations worth $3.17 million
-------------------------------------------------------
The Asian Wall Street Journal reports that the Malaysian
conglomerate Renong Bhd. has defaulted on interest payments
and guarantee obligations worth $3.17 million. Renong
provided a statement to the Kuala Lumpur Stock Exchange
that the default constituted a "cross default" under the
groups other loan facilities and contingent liabilities.  
The other loans that will be in "cross default" will amount
to 1.9 billion ringgit, as well as an additional $400
million. Contingent liabilities from a put option total to
$262 million.  

Renong stated that it is pursuing a debt restructuring plan
that will address its cash flow and debt problems.

Last week a state backed plan was announced where 10.5
billion rinngit of the Renong group's debt was to be
replaced by government guaranteed bonds. The bonds would be
paid off partly by revenue from the Renong group's Projek
Lebuhraya Utara-Selatan Bhd. (the PLUS toll road that runs
north and south along Malaysia's west coast) and partly
from tax payments that PLUS would otherwise make to the
government. The plan calls for the government to take a
stake in some other Renong public works projects, and
the unlisted shares of PLUS will be pledged as security.  
The bonds will be issued by a new government entity called
the Infrastructure Development Corporation. The bonds will
be long-dated, zero coupon paper.  


RENONG BHD: Results - 30/6/98
-----------------------------
Renong Bhd. (listed in KLSE) reported a post tax loss of
RM959.523 mil for the year ended 30.6.98 compared to a post
tax profit of RM549.55 mil in the  previous year. EPS fell
from RM0.216 last year to a loss of RM0.358 per share this
year.


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

EMPIRE EAST LAND: Creditors agree to convert loans
--------------------------------------------------
Empire East Land Holdings Inc, a Philippine housing concern
said its three creditors agreed to convert loans totaling
277 million pesos to equity in the company. The creditors
are Philippine Commercial Capital Inc., Asian Banking Corp
and International Capital Corp. The conversion price will
be 93% of the average of Empire East shares 20 trading days
prior to conversion of the loans to equity.   


PHILIPPINE AIRLINES: Creditors demand return of Boeings
-------------------------------------------------------
According to the SCMP, three foreign creditors have
demanded the return of four Boeing 737-300 planes they have
leased to PAL. The creditors - GE Capital, the financial
unit of General Electric; Ireland-based aircraft lessor GPA
Group, and Airplanes Finance - said PAL failed to pay its
financial obligations due between June 23 and the first of
this month.

In its petition, GE Capital said it leased two Boeing 737-
300s to PAL in 1989, and the flag carrier owed it US$1.65
million in rent and other charges.

GPA Group said it leased one plane and supplied spare parts
to PAL, which owes the group $608,162. PAL has to pay
Airplanes Finance $1.23 million for the lease of a Boeing
737-300.

The SEC would study the petitions and issue a decision
soon, officials said.

Two of the airline's Boeing 747-400 planes were seized
recently by authorities in Hong Kong and Los Angeles on
orders of the US Export-Import Bank, which financed them
for PAL.


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

ASIA CEMENT: La Farge aims to buy big stake in Asia Cement
----------------------------------------------------------
The Nation reports French cement-maker La Farge is talking
with Asia Cement Co of the Bangkok Bank group to buy a
significant stake in the Thai firm, the country's fourth
largest cement-maker, according to a source close to the
dealmakers. Negotiations are expected to conclude in two
months, the source said. Noppadol Krishnamara, deputy
managing director of Asia Cement, and other senior
executives could not be reached for comment yesterday.

Asia Cement has an annual production capacity of 4.5
million tonnes, the fourth largest after Siam Cement Plc,
Siam City Cement and TPI Polene.

Holderbanks of Switzerland recently bought 25 per cent of
Siam City Cement, while Italy Cement is finalising a deal
to buy a majority stake of Jalaprathan Cement. In addition,
Cement of Mexico is negotiating to buy 25 per cent of TPI
Polene.

The source said talks with La Farge started early this
year. In addition, there were another two or three
potential investors who had opened talks with the Bangkok
Bank group, a major shareholder of Asia Cement.

A basic agreement has been reached between La Farge and the
Thai shareholder to pursue further negotiations on the
price and number of shares to be sold. The source said 25-
50 per cent of Asia Cement could be sold by the Thai
shareholder.

The French firm was interested in Asia Cement because the
Thai firm has the modern know-how and Thailand has high-
quality raw materials for the industry, according to the
source.


BANGKOK BANK: Termination of management agreement of BBC
--------------------------------------------------------
The Industrial Finance Corporation of Thailand has
terminated its agreement on a takeover of Bangkok Bank of
Commerce Plc. The Financial Institutions Development Fund
(FIDF), Bangkok Bank of Commerce Plc. (BBC) and IFCT
earlier agreed on the management takeover and
rehabilitation of BBC by IFCT under the Agreement on the
Cooperation in Management Takeover and Rehabilitation and
the Management Agreement, dated May 7, 1997.

Later on August 14, 1998, the Government announced a
financial sector reform package, followed by the Ministry
of Finance's order No. 143/2541 dated August 15, 1998 on a
temporary suspension of BBC's partial operations from
August 17, 1998 onwards. This hinders the management
takeover and rehabilitation of BBC from normal progress and
compliance with the objectives agreed upon. Moreover,
according to a measure set out in the Letter of Intent
No.5, the authorities were to terminate the Management
Agreement made with IFCT by August 31, 1998. The FIDF
therefore issued a letter No. Jor.2778/2541 terminating the
said Agreement on the Cooperation in Management Takeover
and Rehabilitation and the Management Agreement.


BIJOUX HOLDINGS: Extension for turnaround plan
----------------------------------------------
Bijoux Holdings Public Company Limited has cancelled letter
to withdraw from the SET, and has also requested an
extension to submit a turnaround plan in order to meet
qualification for being a registered company in SET.

As the company is now calling for an ordinary shareholders
meeting of 1/1998 which will be held on October 22, 1998 at
2:30 pm. to consider appointing a new board of committees
as well as any other detailed subjects (please see
attachment), the company is therefore not able to submit
the turnaround plan. The company therefore seeks to extend
the time for submitting the turnaround plan for another 90
days from the date of this letter.


CAPETRONIC INTERNATIONAL: Turnaround plan boosts company
--------------------------------------------------------
On 5th March 1996, the Stock Exchange of notified
Capetronic International that it did not meet the
requirements of Net Tangible Asset to Issued Capital Ratio
and that unless a Plan acceptable to the SET was submitted,
the Company's shares may be delisted from the SET.

The Company did not comply with the NTA to Issued Capital
Ratio requirement principal as it had written of
consolidated goodwill of almost Baht 1.5 billion arising
from the acquisition of 50 per cent of Capetronic Computer
Products Holdings Limited in 1993 and incurred a
substantial loss from operations of Baht 658.8 million
during the year ended 31st December 1995.

On 20th May 1996, the Company submitted its Plan to the
SET. The Plan was approved by the SET on 25th September
1996, and included a proposed Rights Issue to be conducted
in 1997.

A capital reduction is still an option and would be
considered in 1998. The primary reason for the capital
reduction would be to eliminate any remaining accumulated
losses. The Grande Holdings Limited, the ultimate holding
company of the Company, confirmed that it would commit to
arrange for any unsubscribed portion of the Rights Issue to
be underwritten.

The various proposals to alter capital were subject to
shareholder and regulatory approvals and the prevailing
market conditions.

A subsequent Revised Proposal was approved by the SET on
25th June 1997. The Company obtained approval from its
Extraordinary General Meeting No. 1/1997 held on 4th August
1997 to conduct the Rights Issue as per the Revised
Proposal. The Rights Issue was completed on 5th September
1997. The issue of Warrants was approved by the SEC on 8th
July 1998 and subsequently listed on the SET on 2nd
September 1998.

Even facing Thailand's financial crisis, the Company had no
liquidity problem as it can obtain most of its low costs
credit facilities from its related companies, Capetronic
Computer USA (Hong Kong) Limited and Capetronic Computer
Finance Limited, which have been granted credit
facilities from foreign bank such as Hong Kong Bank. In
addition, it has been the Company's policy to reduce the
use of facilities from local banks due to their high rates
of interest.

For the first six months of 1998, the Company achieved a
net profit of Baht 167.6 million (5.5 per cent higher than
its net profit in the corresponding period of 1997), after
taking into account a Baht 84.9 million share of loss from
subsidiary and associated companies. Baht 72.2 million out
of the total share of loss from subsidiary and associated
companies was an exceptional item arising from the costs of
restructuring Capetronic (Kaoshiung) Corporation's internal
organisation. In this case, CKC incurred severance costs as
a result of the termination of some of its employees.

The Company's financial status continues to remain strong.
The Group's total assets as at 30th June 1998 were Baht 5.2
billion and the Group's net asset value as at 30th June
1998 was Baht 2.4 billion, thus the Group's gearing ratio
was 1.17 which is considered appropriate.


SIAM NISSAN AUTO: Brakes put on SNA-Nissan deal
-----------------------------------------------
The Nation reports negotiations to recapitalise Siam Nissan
Automobiles Co Ltd, in which Nissan Motors of Japan plans
to raise its equity from 25 to 49 per cent, will resume
when world economic factors affecting the price stabilise,
according to Phornthep Phornprapha, head of Siam Group of
Companies, the Thai shareholder of SNA.

Phornthep said talks had been going on for more than two
years, but a deal was not cut yet, even though Nissan
announced earlier in Tokyo that it was to increase its
stake in SNA to 49 per cent.


WONGPAITOON GROUP: Promises disclosure on lending practices
-----------------------------------------------------------
Wongpaitoon Group Public Company Limited (WFC) has informed
the SET that its board of directors on 14th October 1998
decided to adapt better policies of lending to other
companies without financial damage to WFC, with full
protection to the interest of minority shareholders and
within a legal framework. A committee has been set up to
examine the matter and will report its progress to the
board. The board expects to resolve the situation within
the next two months.


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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