TCRAP_Public/981020.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      

      Tuesday, October 20, 1998, Vol. 1, No. 168

                    Headlines


* C H I N A   &   H O N G   K O N G *

B+B CONSTRUCTION: Substandard work may mean bailout
DAIDO CONCRETE (HK): Man Fai Tai holds rescue talks
DAIWA SECURITIES (HK): Three-month moratorium on trading
ESPIRIT HOLDINGS: Reveals $125.3 million loss
GENECO DEVELOPMENT LIMITED: Winding-up order

GUANGDONG ENTERPRISES (HOLDINGS): Moody's downgrade
GUANGDONG INTERNATIONAL: Assets frozen in HK, Shenzhen
PEARL ORIENTAL: Subsidiary ordered to pay late deposit
SA SA INTERNATIONAL: Warning on interim results


* J A P A N *
  
DAI NIPPON PRINTING: Projects first profit drop in 49 years
FUJI BANK: Non-bank affiliates amassing problem loans
LONG TERM CREDIT: Gov't told LTCB inspection result
LONG TERM CREDIT: Reform bill to set state control
MITA INDUSTRIAL: Relatives receive illegal dividends

MITSUBISHI CORP: Moody's downgrades long-term debt rating
MITSUI & CO: Moody's downgrades long-term debt rating
MYOJO FOODS: To liquidate two production subsidiaries
NIPPON LIGHT METAL: To merge with Toyo Aluminium KK
NISSAN MOTOR: Expects Y33 billion loss

SUMITOMO CORP: Moody's downgrades long-term debt rating
TESCON: Applies for court liquidation
TOYO ALUMINIUM KK: To merge with Nippon Light Metal


* K O R E A *

BABYRA COMPANY: Sold to US company
KIA MOTORS: Hyundai wins auction
KOHAP COMPANY: To secure $US896 million in foreign capital
ILSAN CONSTRUCTION: Completes creditor reconciliation
KABUL GROUP: Affiliate companies' workout program settled

MANDO MACHINERCY: Completes creditor reconciliation
PASTEUR DAIRY: Completes creditor reconciliation


* M A L A Y S I A *

A.P. EXPRESS (M) SDN BHD: Winding-up petition
ASAH INDAH SDN BHD: Winding-up petition
LIM XIN YUAN SDN BHD: Voluntary winding-up
NEOCORP DEVELOPMENT SDN BHD: Winding-up petition
RENONG BHD: Bailout leaves creditors few alternatives

RENONG BHD: RAM downgrades rating on news of defaults
SANDA INDUSTRIES BHD: Results - 30/6/98
SAVANNA MENANG SDN BHD: Winding-up petition
SIME BANK: Danaharta to take over management of bad loans
SIN HENG CHAN (M) BHD: Results - 30/6/98

SINORA INDUSTRIES BHD: Results - 30/6/98
SRIWANI HOLDINGS BHD: Results - 30/6/98
STAMFORD COLLEGE BHD: Results - 30/6/98
SUNGEI BAGAN RUBBER CO (M) BHD: Results - 30/6/98
SUNGEI WAY GROUP: Willing to divest equity

SUNWAY BUILDING TECHNOLOGY BHD: Results - 30/6/98
SUNWAY CITY BHD: Results - 30/6/98


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

PHILIPPINE AIRLINES:  Cathay negotiating with creditors


* T H A I L A N D *

SIAM SYNTEC CONSTRUCTION: Measures to avoid delisting


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

B+B CONSTRUCTION: Substandard work may mean bailout
---------------------------------------------------
B+B Construction faces a $1 billion repair bill for
substandard foundation work on at least four sites at the
center of a Buildings Department probe into an alleged
piling scam. The cash crunch is so serious B+B's parent
company Bilfinger+Berger, Germany's third largest
construction outfit, could be forced to bailout the firm.

The claims were not covered by insurance and would be paid
by the company, an insider said. Wing Tai Asia, the
developer of one of the four sites has asked B+B for
compensation to cover cost of remedial works to its
waterfront complex at Kowloon Station. Investigation showed
most piles there had not been properly drilled into rock.

Wing Tai is jointly developing six towers containing 1275
flats with Temasek Holdings, Singapore Land, Keppel Land
and other investors. Industry insiders said Wing Tai would
expect to be reimbursed for a $300 million contract it has
awarded to rival piling firm Bachy Soletanche to complete
the waterfront works. Although B+B offered to carry out the
work at its own expense, that was sharply rejected by Wing
Tai Asia.


DAIDO CONCRETE (HK): Man Fai Tai holds rescue talks
---------------------------------------------------
According to the SCMP, Daido Concrete (HK), with $1.06
billion of debt at the end of April, against assets of $470
million, said that the company was in discussions over
restructuring its liabilities that could see Man Fai Tai
Holdings take control of the group. At present, Daido's
largest shareholder, with 27.1 per cent, is Tokyo-based
Daido Concrete, which itself is in liquidation.

Daido said a formal agreement could be reached within three
months but no details of the restructuring have been made
public. Previous discussions with other companies over the
injection of new capital have all failed.

Man Fai Tai, not listed on the stock exchange, is a company
that makes and trades construction materials.

Daido said it was proposed that Man Fai Tai would acquire
35 per cent or more of the voting rights in the company.
This would not trigger a general takeover offer and the
company plans to apply for a waiver of the obligation.

Daido said it had enough capital to keep in operation as
long as it could secure informal and temporary standstill
agreements from its creditors, which are expected to
continue.

News of the potential restructuring proposal was released
with Daido's annual results, which saw the company report a
loss of $297 million for the year ending in April, lower
than in the previous year, when it lost $612 million.
However, turnover was slashed from $1.44 billion to $450
million.

The company said much of the loss could be put down to the
performance of its Daido Construction subsidiary and a
competitive market, especially in the first half of the
year.

Earlier this year, Daido's parent attempted to sell its 27
per cent holding in the company but the potential buyer,
Hinsome, pulled out.

During the year, Daido significantly scaled back its
businesses, but its problems came to a head in June last
year, when the lack of working capital forced it to meet
creditor banks and open negotiations for standstill
agreements to prevent it being wound up. The company said
it had implemented cost-cutting measures since that and had
wound down its non-core businesses, and the financial
position had improved despite the decrease in turnover.


DAIWA SECURITIES (HK): Three-month moratorium on trading
--------------------------------------------------------
The Financial Times reports Daiwa Securities (HK), the
local arm of the Japanese securities brokerage, has agreed
to a three-month moratorium on proprietary trading in Hong
Kong-listed stocks after being reprimanded by the industry
watchdog for poor controls. Various probes conducted in and
outside the company concluded Daiwa Securities had failed
to erect "Chinese walls" for its proprietary trading
operations, thus leaving it open to conflicts of interest.

The Securities and Futures Commission said that "Daiwa's
internal control procedures were materially inadequate to
monitor its credit and margin lending operations, and it
had an inadequate organisation structure, management
systems and risk control framework."


ESPIRIT HOLDINGS: Reveals $125.3 million loss
---------------------------------------------
Espirit Holdings yesterday revealed a $125.3 million
exceptional loss against certain investments and omitted a
final dividend to shareholders. Espirit's attributable
profit fell 34% to $155.1 million for the year to June 30,
down from last year's $235.5 million. The company said no
dividend was recommended.

The company said the exceptional item represented a
provision for the diminution in value of long-term
investments. Earnings per share were 14.2 cents, down from
last year's 26.11 cents, while turnover rose 51.6% to $5.08
billion. Espirit said most of the its growth had come from
Europe.


GENECO DEVELOPMENT LIMITED: Winding-up order
--------------------------------------------
A winding-up order notice is hereby given that Geneco
Development Limited is undergoing a companies winding-up
proceedings (No 612 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.    


GUANGDONG ENTERPRISES (HOLDINGS): Moody's downgrade
---------------------------------------------------
The Financial Times reports Guangdong Enterprises
(Holdings), the province's biggest commercial enterprise
outside China, has had its foreign currency rating
downgraded by Moody's Investors Services in the wake of the
collapse of Guangdong International Trust and Investment
Corporation. The downgrade, from Baa3 to Ba2, was also
prompted by the unfavourable business environment.
Guangdong Enterprises has some $900 million in foreign debt
and its ratings remain on review for further downgrading.


GUANGDONG INTERNATIONAL: Assets frozen in HK, Shenzhen
------------------------------------------------------
According to the SCMP, assets worth at least HK$1.65
billion belonging to collapsed Guangdong International
Trust and Investent Corp (Gitic) and its subsidiaries have
been frozen in Shenzhen and Hong Kong as its winding up
gathers pace. Of this, about HK$651 million worth of assets
from 59 bank accounts held by a Shenzhen-based Gitic
subsidiary and five other enterprises linked to Gitic were
frozen in Shenzhen by the Guangdong People's High Court,
and assets of of at least HK1 billion in book value of
Gitic Hong Kong (Holdings) (Gitic HK) and Guangxin
Enterprises had been frozen.

The provisional liquidator of the Hong Kong-based
subsidiaries, KPMG Peat Marwick partner Gabriel Tam Chi-
kok, said the first meeting with creditors was scheduled
for early next month, as the liquidator wanted more time to
gather information on the assets and liabilities of Gitic
HK and Guangxin.

Assets of Gitic and its subsidiaries are unlikely to be
sufficient to cover debts. Gitic officials said last month
its assets amounted to an estimated 30 billion yuan. Its
debt-to-equity ratio was estimated to be at 80 per cent.
Gitic HK and Guangxin Enterprises alone have combined
liabilities of HK$6.6 billion, excluding contingent
guarantees.

Banks in Hong Kong are owed HK$11 billion, including direct
exposure and guarantees, by Gitic and its subsidiaries.

Chinese Premier Zhu Rongji told Hong Kong Chief Executive
the Gitic incident is not such a big deal, saying that
business closures are common in China and elsewhere. He
also said Hong Kong's role as a key fund-raising centre for
mainland China will continue as long as the financial
situation of state-owned enterprises was sound, and after
closing down those unsound enterprises, the financial
market will become healthier.

Foreign creditors are concerned whether they will be able
to recover their exposure in full. Yesterday, Union Bank of
Switzerland was reportedly seeking to recover US$100
million from Gitic. According to the Hong Kong Standard,
the Swiss bank left US$100 million with Gitic while it sold
the same amount of bonds on its behalf in a complex bond
sale, allowing Gitic to obtain foreign currency without
waiting for approval from mainland authorities.

The paper also said that during yesterday's meeting of
creditor banks of Gitic, one suggestion presented was to
ask the Hong Kong Monetary Authority to liasise with and
seek clarification from the People's Bank of China (PBOC)
on the extent of support the PBOC would be willing to
provide to Gitic debts not registered with the central
bank's State Administration of Foreign Exchange (Safe).
However, no consensus was reached.


PEARL ORIENTAL: Subsidiary ordered to pay late deposit
------------------------------------------------------
A subsidiary of Pearl Oriental has been ordered to repay a
$101 million deposit resulting from the late completion of
a building in Central. The 23-story Wellington St. Block
has been sold by Pearl subsidiary Global Time Investments
to Super Keen Investments in 1994 for $600 million.

The building was originally scheduled to be completed on
June 30, 1995. It was not finished until March 1996, and
the occupation permit was issued the following month. The
market value had fallen and it was agreed by the parties
that as of April that year, the value was $290 million.
Super Keen did not wish to pay $600 million in this case,
and so it told Global Time in November 1995 that unless
completion was made within a reasonable time, it would
rescind the agreement. Global Time failed to honor this and
so Super Keen rescinded agreement.

Following a trial at the Court of First Instance, Mr
Justice Findlay said Super Keen was also entitled to recoup
its deposit of $101 million from Global Time.   


SA SA INTERNATIONAL: Warning on interim results
-----------------------------------------------
Sa Sa International Holdings, a Hong Kong cosmetic retailer
said the interim results for the six months to September 30
would be substantially below market expectations, as the
company was hit by the deteriorating regional economy. The
result is expected to be announced in late December.

The company said the operating profits had been affected
adversely by the decrease in store sales due to the
difficult economic climate in the region. The company said
profit had also been affected by rising costs and a severe
downturn in the retail and tourism industries.

It has taken steps to introduced a vigorous cost control
programme including a reduction on the sales force and
salary cuts. It said the company's financial position
remains sound despite the adverse retailing environment.  


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




=========
J A P A N  
=========

DAI NIPPON PRINTING: Projects first profit drop in 49 years
-----------------------------------------------------------
The Nihon Keizai newspaper reports Dai Nippon Printing Co.
expects pretax profit to drop by slightly less than 20%
year on year to about 78 billion yen of the year ending
March 1999, its first decline in 49 years. The company
blamed the worsening economy's negative impact on printing
of pamphlets and magazines. Sales at its electronics
division have been also sluggish due to the stalled
semiconductor market and inventory adjustment by personal
computer makers.

Dai Nippon Printing will continue to restructure its group
organization, but operating profit is projected to drop 30%
to about 58 billion yen. Meanwhile, sales for the first
half through September fell 7% to 533 billion yen, with
pretax profit decreasing 17% to 40 billion yen.

Dai Nippon Printing has continued to post increased profit
every year since it was re-listed in 1949 when the Tokyo
Stock Exchange resumed operation.


FUJI BANK: Non-bank affiliates amassing problem loans
-----------------------------------------------------
Problem loans at four non-bank finance companies affiliated
with Fuji Bank amounted to 387.1 billion yen, accounting
for 33% of their overall assets. The problem loans at the
four affiliates -- Fuyo General Lease Co., Japan Mortgage
Co., Fuyo General Development and JMC Credit -- included
268.6 billion yen in so-called "secondary-category" loans,
they said. A Fuji official said about 70% of secondary-
category loans were covered by collateral, and Fuji had set
aside 122.3 billion yen in loan-loss reserves to help cover
problem loans.


LONG TERM CREDIT: Gov't told LTCB inspection result
---------------------------------------------------
According to a Kyodo News report, the Financial Supervisory
Agency (FSA) notified the Long-Term Credit Bank of Japan
(LTCB) on Monday morning of the result of its inspection of
the troubled bank, Chief Cabinet Secretary Hiromu Nonaka
said.

Nonaka declined to disclose the result, however, saying it
could have adverse effects on LTCB's clients or on the
banking system. In financial circles, it is believed LTCB
is virtually insolvent due to latent losses on its
stockholdings.


LONG TERM CREDIT: Reform bill to set state control
--------------------------------------------------
According to the SCMP, banking sources said that the Long
Term Credit Bank of Japan (LTCB) has applied to be put
under state control and will become the first Japanese bank
to be nationalised under a law which goes into effect on
Friday to deal with failed or failing banks.

Officially LTCB has not collapsed since Japan's financial
watchdog is still finalising its inspection, but it can
barely raise funds from the market because of fears raised
by its poor balance sheets, according to banking sources.


MITA INDUSTRIAL: Relatives receive illegal dividends
----------------------------------------------------
According to a Kyodo News report, relatives of the former
president of failed photocopier maker Mita Industrial Co.
have received some 1.2 billion yen in illegal dividends
since 1986, before the company effectively went bankrupt in
August, sources close to the firm said Saturday.

The former president, Yoshihiro Mita, 59, was arrested
Tuesday on suspicion of violating the Commercial Code by
paying dividends after falsifying the firm's earnings
reports.


MITSUBISHI CORP: Moody's downgrades long-term debt rating
---------------------------------------------------------
The Asian Wall Street Journal reports Moody's Investor
Service has downgraded the long-term debt rating of the
Mitsubishi Corporation from single A1 to single A2. This
action reflects concerns over reduced business volume,
decreasing financial cushions to absorb potential losses,
exposure to emerging markets, and a change in the behavior
of Japanese institutional investors, which may affect the
costs of funds.  


MITSUI & CO: Moody's downgrades long-term debt rating
-----------------------------------------------------
The Asian Wall Street Journal reports Moody's Investor
Service has downgraded the long-term debt rating of Mitsui
& Company from single A1 to single A3, as well as dropping
its short-term debt rating from Prime 1 to Prime 2. This
action reflects concerns over reduced business volume,
decreasing financial cushions to absorb potential losses,
exposure to emerging markets, and a change in the behavior
of Japanese institutional investors, which may affect the
costs of funds.  


MYOJO FOODS: To liquidate two production subsidiaries
-----------------------------------------------------
The Nihon Keizai newspaper reports Myojo Foods Co. said
Friday it will liquidate two production subsidiaries and  
has terminated instant noodle production at two affiliates,
hoping to strengthen competitiveness. Subsidiaries located
in Hiroshima and Ehime Prefectures halted production in
June, pending closure. Production will be transferred to
other factories.

The instant noodle manufacturer is likely to have posted a
pretax loss of 50 million yen for the year ended September
due to poor sales and increased promotion expenses amid
intensifying competition.


NIPPON LIGHT METAL: To merge with Toyo Aluminium KK
---------------------------------------------------
The Nihon Keizai newspaper reports Nippon Light Metal Co.
will merge with group company Toyo Aluminium KK on Oct. 1,
1999, officials at the companies said Friday. Nippon Light
will be the surviving firm, with three shares exchanged for
one Toyo Aluminium share. The new company is expected to
post some 320 billion yen in annual sales with a payroll of
about 4,800.

Nippon Light produces aluminum boards and extruded
materials, while Toyo Aluminium reprocesses the products
into aluminum foil. The merger will result in no major
restructuring as operations do not overlap.

Both companies are affiliated with Alcan Aluminium Ltd. of
Canada, which was once top shareholder in Nippon Light with
a stake of 250 million shares. Alcan sold 130 million
shares to Toyo Aluminium for some 18 billion yen on Friday,
making Toyo Aluminium the largest shareholder in Nippon
Light. Alcan's stake in Nippon Light declined from 47.39%
to 22.39%. Nippon Light currently holds a 49.03% stake in
Toyo Aluminium as top shareholder.


NISSAN MOTOR: Expects Y33 billion loss
--------------------------------------
Kyodo News reports Nissan Motor, Japan's second largest car
maker, said it expected a 33 billion yen parent net loss in
the half year to September 30, due to massive losses in its
shareholdings. Nissan managing director Kanemitsu Anraku
said that the struggling auto maker was proceeding with a
restructuring plan that would cut debt and restore its
balance sheet to health. He said the company is improving
the finance by selling its assets.

A Nikkei News report says Nissan attributed the poor
results to securities appraisal loss of about 76 billion
yen registered as extraordinary loss. It is Nissan's first
interim net loss since the first half of fiscal 1995.

Sales in the first half fell 8% to 1.63 trillion yen.
Domestic sales stood at 435,000 vehicles, 5% less than
expected. Exports to Europe, the U.S. and the Middle East
grew. Profit received a 7 billion yen boost from the weak
yen: the dollar had been presumed at an exchange rate of
128 yen but hovered above 132 yen. However, pretax profit
plunged 36% to 29 billion yen.


SUMITOMO CORP: Moody's downgrades long-term debt rating
-------------------------------------------------------
The Asian Wall Street Journal reports Moody's Investor
Service has downgraded the long-term debt rating of the
Sumitomo Corporation from single A2 to Baa1, as well as
dropping its short-term debt rating from Prime 1 to Prime
2. This action reflects concerns over reduced business
volume, decreasing financial cushions to absorb potential
losses, exposure to emerging markets, and a change in the
behavior of Japanese institutional investors, which may
affect the costs of funds.  


TESCON: Applies for court liquidation
-------------------------------------
Japan's Tescon Co said Friday that it filed with the
Yokohama district court for corporate liquidation under
Japanese commercial code with 11.7 billion yen in debt.

Tescon, which makes testers for printed circuit boards,
said it choose to file for liquidation as it expects to be
unable to repay loans due Nov. 2 on Sept. 30. Fuji Bank Ltd
seized money from its bank account after the company failed
to repay loans it notes. The company later settled the
notes through Sanwa Bank Ltd and Tokai Bank Ltd.


TOYO ALUMINIUM KK: To merge with Nippon Light Metal
---------------------------------------------------
The Nihon Keizai newspaper reports Nippon Light Metal Co.
will merge with group company Toyo Aluminium KK on Oct. 1,
1999, officials at the companies said Friday. Nippon Light
will be the surviving firm, with three shares exchanged for
one Toyo Aluminium share. The new company is expected to
post some 320 billion yen in annual sales with a payroll of
about 4,800.

Nippon Light produces aluminum boards and extruded
materials, while Toyo Aluminium reprocesses the products
into aluminum foil. The merger will result in no major
restructuring as operations do not overlap.

Both companies are affiliated with Alcan Aluminium Ltd. of
Canada, which was once top shareholder in Nippon Light with
a stake of 250 million shares. Alcan sold 130 million
shares to Toyo Aluminium for some 18 billion yen on Friday,
making Toyo Aluminium the largest shareholder in Nippon
Light. Alcan's stake in Nippon Light declined from 47.39%
to 22.39%. Nippon Light currently holds a 49.03% stake in
Toyo Aluminium as top shareholder.


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

BABYRA COMPANY: Sold to US company
----------------------------------
The Korea Times reports that the infant clothing firm of
Babyra Company, an affiliate of B.Y.C. (Baek Yang Cotton -
a Korean textile company famous for underwear), has
recently handed over all of its shares to KEB Salomon Smith
Barney for $20 million. This paper noted that this marks
the first time an infant clothing company has ceded its
managerial rights by selling its shares. KEB Salomon Smith
Barney is expected to sell the shares to the actual
operator of the firm later.

Babyra was founded in 1979, and sells four well known
clothing brands via 800 stores throughout Korea. Although
it had record sales last year, it defaulted on bills in
June of this year due to a temporary shortage of funds.  


KIA MOTORS: Hyundai wins auction
--------------------------------
Reuters reports Hyundai Motor Co. Ltd. has been chosen to
take over debt-laden Kia Motors and Asia Motors Corp. and
said it would look for foreign capital to finance the deal.
Lee Jong-dae, the court-appointed chief executive officer
of Kia Motors, announced Hyundai Motor won the bidding for
Kia and unlisted Daewoo Motor Co. was the runner-up.

He said Kia's current major shareholder, Ford Motor Co, was
disqualified after it offered a bid price for Asia Motors
Corp below the face value per share of 5,000 won ($3.70).
The auctioning panel had said the bidding price should not
be lower than the face value. Local newspapers reported on
Monday Ford had wanted to buy Asia at 1,000 won per share.
Ford and its Japanese affiliate Mazda hold the largest
single stake of 16.9 percent in Kia. Ford owns 33 percent
of Mazda.

Hyundai asked for a debt write-off of 7.3 trillion won and
would not accept any requests from creditors for a
reduction in that demand. Hyundai says the company will
continue to produce cars in the Kia brand name in hopes to
boost sales in both domestic and overseas markets.

The announcement failed to remove uncertainties about the
fate of Kia, whose troubles surfaced in July last year when
it faced default on its then 10 trillion won loan burden.
An executive at state-run Korea Development Bank, Kia's
main creditor -- and which has said it preferred Ford as
the winning bid -- said it had yet to decide whether to
accept Hyundai's offer.

But Yonhap Television News quoted the bank's governor, Lee
Kun-young, as saying: "We will accept the result of the Kia
tender, but we still have to look at some details."

If the bid is rejected, Kia and Asia would have to be
liquidated, vice industry minister Choe Hong-geon told
reporters.


KOHAP COMPANY: To secure $US896 million in foreign capital
----------------------------------------------------------
Asia Pulse reports the Kohap Co. said Friday it was working
on a plan to secure 1.2 trillion won (US$896 million) in
foreign capital, before being placed on a workout list by
the corporate restructuring committee. A Kohap official
said that substantial progress had been made in
negotiations with three foreign investors, including two
world-renowned U.S. chemical firms and a Chinese firm
through the sale of company assets, and he saw no trouble  
securing upwards of 1.2 trillion won in foreign capital.


ILSAN CONSTRUCTION: Completes creditor reconciliation
-----------------------------------------------------
The Korean language Maeil Kyungje reports that the Ilsan
Construction Company completed its creditor reconciliation
procedure and the result has been approved by the Chunchon
District Court.


KABUL GROUP: Affiliate companies' workout program settled
---------------------------------------------------------
According to the Korean language Maeil Kyungje, the workout
plans of the five affiliate companies of the Kabul Group
were completed by the creditors' meeting held on October
17, 1998. The article identified two of these affiliates as
Kabul Company, and Kabul Textile Company.

These two companies' workout plans include selling off
their real estate, liquidating the companies' 12
affiliates, closing out their branch offices abroad, and
laying off their employees.


MANDO MACHINERCY: Completes creditor reconciliation
---------------------------------------------------
The Korean language Maeil Kyungje reports Mando Machinery
Company completed its creditor reconciliation and the
result has been approved by the Suwon District Court. The
company's total debt is 3.4 trillion won.


PASTEUR DAIRY: Completes creditor reconciliation
------------------------------------------------
The Korean language Maeil Kyungje reports that the Pasteur
Diary Company completed its creditor reconciliation
procedure and the result has been approved by the Chunchon
District Court.

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

A.P. EXPRESS (M) SDN BHD: Winding-up petition
---------------------------------------------
Asian World Shipping Limited on 26/8/98 petitioned for the
winding-up of A.P. Express (M) Sdn Bhd. The petition is
directed to be heard on 4/12/98.


ASAH INDAH SDN BHD: Winding-up petition
---------------------------------------
Tenaga Nasional Bhd on 21/1/98 petitioned for the winding-
up of Asah Indah Sdn Bhd. The petition is directed to be
heard on 13/11/98.


LIM XIN YUAN SDN BHD: Voluntary winding-up
------------------------------------------
The members of Lim Xin Yuan Sdn Bhd resolved to wind-up the
company voluntarily. Creditors are requested to submit
their claims before 12/10/98.


NEOCORP DEVELOPMENT SDN BHD: Winding-up petition
------------------------------------------------
Hoh Hooi Choo on 3/8/98 petitioned for the winding-up of
Neocorp Development Sdn Bhd. The petition is directed to be
heard on 13/11/98.


RENONG BHD: Bailout leaves creditors few alternatives
-----------------------------------------------------
According to the SCMP, Renong's default on loans worth
M$4.4 billion leaves its lenders with little choice but to
sign on to Malaysia's rescue plan for it. The alternative
of liquidating the company means creditors will have to
take losses and might get back only a fifth of the money
owed to them.

Investors are concerned that if the rescue is pushed
through, it may encourage other politically well-connected
Malaysian companies to seek similar assistance from the
government. Renong's default does mean that this deal is
more likely to go through.

Renong has pushed through its rescue plan to avoid
bankruptcy and a fire sale of its assets, convincing the
government that its survival is critical to Malaysia's
financial system. It is not clear, if anything, what it is
offering in return. Malaysia's prime minister Dr Mahathir
said on Thursday that if it's good for the country, it
would be done whether it's a bailout or not.

Renong has up to 70 creditors, with foreign lenders
including Credit Lyonnais, Schroder & Co, JP Morgan,
Rothschild Bank, Sanwa Bank, Banco Santander and Keppel
Bank.

Malaysia's state oil company Petroliam Nasional, or
Petronas, gave M$1 billion to a government fund, which will
help the rescue of Renong.

Mustapa Mohamed, Malaysia's second finance minister said
the money would be used to finance some infrastructure
projects.


RENONG BHD: RAM downgrades rating on news of defaults
-----------------------------------------------------
Rating Agency Malaysia downgraded Renong Bhd's rating to
single-D from single-C3 after the conglomerate defaulted on
interest payments and guarantee fees on 42.1 million
ringgit of revolving credit facilities, as well as $147
million transferable loan certificate. Renong plans to
restructure, but the success of the plan depends on the
government's issuing 10.5 billion ringgit of bonds to pay
the group's creditors.  


SANDA INDUSTRIES BHD: Results - 30/6/98
---------------------------------------
Sanda Industries Bhd (listed on the KLSE) reported a post-
tax loss of RM4.6mil for the half-year ended 30/6/98,
compared to a post-tax loss of 1.483mil previously.
Loss per share rose 170% from 9.88sen to 30.67sen.


SAVANNA MENANG SDN BHD: Winding-up petition
-------------------------------------------
EITA Power System Sdn Bhd on 1/9/98 petitioned for the
winding-up of Savanna Menang Sdn Bhd. The petition is
directed to be heard on 8/1/99.


SIME BANK: Danaharta to take over management of bad loans
---------------------------------------------------------
Danaharta said it was taking over the management of six
billion ringgit of nonperforming loans from Sime Bank Bhd.

Danaharta said the deal marked a break from the
institution's original approach to cleaning up the banking
sector because it won't be buying the loans. It said it
will be rehabilitating the loans in return for a percentage
of recovered assets. Danaharta would be taking over the
management of 500 non-performing loans, many of which were
extended to the struggling property and construction
sectors, as well as to investors for the purpose of
investing in the stock market.

If the proceeds recovered are less than or equal to the
value of the loans, Danaharta will get 2%. If the value of
the recovered assets exceeds the loans' initial value, then
Danaharta will get 20% of the extra return, as well as a
flat rate of 2%.


SIN HENG CHAN (M) BHD: Results - 30/6/98
----------------------------------------
Sin Heng Chan (M) Bhd (listed on the KLSE) reported a post-
tax loss of RM6.187mil for the half-year 30/6/98, compared
to another post-tax loss of RM4.017mil previously. Loss per
share rose 53% from RM0.21 to RM0.32 during the period.


SINORA INDUSTRIES BHD: Results - 30/6/98
----------------------------------------
Sinora Industries Bhd (listed on the KLSE) reported a post-
tax loss of RM8.676mil for the 6 months ended 30/6/98,
compared to a post-tax profit of RM3.263mil previously. EPS
fell 366% from 3.26sen to a loss per share of 8.68sen.


SRIWANI HOLDINGS BHD: Results - 30/6/98
---------------------------------------
Sriwani Holdings Bhd (listed on the KLSE) reported a post-
tax loss of RM54.494mil for the 6 months ended 30/6/98,
compared to a post-tax profit of RM18.748mil previously.
EPS fell from 14.86sen to a loss per share of 25.76sen
during the period.


STAMFORD COLLEGE BHD: Results - 30/6/98
---------------------------------------
Stamford College Bhd (education group listed on the KLSE)
reported a post-tax loss of RM16.95mil for the year ended
30/6/98, compared to a post-tax loss of RM0.591mil
previously. Loss per share rose 5,424.5% from 1.55sen to
85.63sen during the period.


SUNGEI BAGAN RUBBER CO (M) BHD: Results - 30/6/98
-------------------------------------------------
Sungei Bagan Rubber Co (M) Bhd (plantation group, listed on
the KLSE) reported a post-tax loss of RM25.2mil for the
year ended 30/6/98, compared to a post-tax profit of
RM38.603mil previously. EPS fell 165% from RM20.42 to a
loss per share of RM13.33 during the period.


SUNGEI WAY GROUP: Willing to divest equity
------------------------------------------
The Sungei Way group (listed on the KLSE) is willing to
divest up to 40% of the equity of the group or any of its
subsidiaries to foreign investors rather than sell its
assets outright, in order to ease its cash flow problems.

The group president declined to identify potential
investors except to say that they were from the West and a
deal was expected to be finalised by year-end.


SUNWAY BUILDING TECHNOLOGY BHD: Results - 30/6/98
-------------------------------------------------
Sunway Building Technology Bhd (listed on the KLSE)
reported a post-tax loss of RM28.711mil for the 6months
ended 30/6/98, compared to a post-tax profit of RM19.241mil
previously. EPS fell 252% from RM0.15 to a loss per share
of RM0.22 during the period.


SUNWAY CITY BHD: Results - 30/6/98
----------------------------------
Sunway City Bhd (a company in the property sector, listed
on the KLSE) reported a post-tax loss of RM27.551mil for
the 6months ended 30/6/98, compared to a post-tax profit of
RM38.778mil previously. EPS fell 150% from RM0.14 to a loss
per share of RM0.07


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

PHILIPPINE AIRLINES:  Cathay negotiating with creditors
-------------------------------------------------------
According to the SCMP, a Deutsche Bank research team said
after an interview with Cathay Pacific's director of
corporate development Tony Tyler that Cathay Pacific may
invest in PAL along with at least one passive investor,
they have come up with business plans and are talking to
creditors about restructuring debt with various levels of
cuts taken but was still a stage before carrying out due
diligence in PAL.

Deutesch Bank said Cathay would not necessarily buy the
entire 40 per cent of PAL available to a foreign buyer.

Cathay is understood to be willing to invest in PAL only if
it can assume management control and there is a significant
restructuring of its debt. It is thought to be well ahead
of other potential investors such as Northwest Airlines.

Deutsche Bank said Cathay was interested in buying PAL
partly to keep competitors out if its backyard and because
the two businesses could complement each other. Cathay is
understood to be examining two business plans, both of
which involve taking on only 20 PAL aircraft. The bank said
it was more confident a deal would be struck.

Analysts said the deal would represent an opportunity for
Cathay to establish itself as a regional carrier but have
expressed concern about the timing when there is a slump in
Asian air passenger numbers.

According to the Hong Kong Standard, analysts said Cathay
Pacific will have to make a radical restructuring of PAL if
it takes a stake in it in order to make it a successful
investment. Cathay would have to restructure most of the
operations including its route network and debt repayment.
Aviation analyst at Merrill Lynch said that Cathay could
change it into something viable. Peter Negline at Salomon
Smith Barney said that part of the restructuring process
had begun and Cathay would pick up that advantage.

PAL had said it would return to profit in three years with
a rehabilitation plan entailing fleet reduction, capital
injection, a spin-off program and a debt repayment scheme.

In buying part of PAL, Cathay could get its hands on a
steady flow of overseas contract workers, which though not
lucrative, is steady business, but the Taiwan route and the
Japanese route nonetheless remain more important to Cathay.


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



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

SIAM SYNTEC CONSTRUCTION: Measures to avoid delisting
-----------------------------------------------------
Siam Syntec Construction has notified the SET that it is in
the process of studying and planning to improve its
operational status through the appointment of Rothschild
Inc. to undertake a debt restructuring plan with the
company's creditors, and shall present a plan to the
creditors, which is expected to take 3 to 4 months.

It is necessary to obtain acceptance of the company's
creditors of the company for the plan to succeed. However,
the company is also in the process of appointing an
independent financial advisor to assist in the plan in
order to avoid possible causes of delisting and present a
plan to the shareholders of the Company at a later date.


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,
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DC USA.  Debra Brennan and Lexy Mueller, Editors.

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

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