TCRAP_Public/981023.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      

      Friday, October 23, 1998, Vol. 1, No. 171

                    Headlines


* C H I N A   &   H O N G   K O N G *

BEST CENTURY HOLDINGS LIMITED: Winding-up order
BIJOU FILMS (CHINA) LIMITED: Winding-up order
GENUINE OCEAN TRADE LIMITED: Winding-up order
GUANGDONG INTERNATIONAL: PBOC probes Gitic crash
GUANGZHOU ETHYLENE: Ethylene unit claims rescuer

HONOU TRAVEL SERVICES COMPANY LIMITED: Winding-up order
SINOMEX (HONG KONG) LIMITED: Winding-up order
VAXHOLM: Law firm accused of blunder on $20m loan


* J A P A N *

MITSUBISHI ESTATE: Moody's downgrades real-estate firms
MITSUBISHI MOTORS: To close US regional credit offices
MITSUI FUDOSAN: Moody's downgrades real-estate firms
ORIENT CORP: To increase debt issues
SUMITOMO REALTY: Moody's downgrades real-estate firms

TOKYO TATEMONO: Moody's downgrades real-estate firms
TOKYU LAND: Moody's downgrades real-estate firms
YAMAKICHI SECURITIES: Files for bankruptcy protection


* K O R E A *

CHUNGNAM GAS: Starts creditor reconciliation
JINRO COORS: Coors gives Jinro creditors ultimatum
KIA MOTORS: Hyundai needs 7.6 trillion Won for Kia
KIA MOTORS: Korea sentences former chairman to seven years


* M A L A Y S I A *

PENAJAMAS SDN BHD: Winding-up petition
REKAPACIFIC BHD: Winding-up petition
RENONG BHD: Land sale cancelled
TAIPING CONSOLIDATED: Explains why it took up lower offer
TIGA MUTIARA INDUSTRIES (M) SDN BHD: Winding-up petition

ZABIDIN SDN BHD: Winding-up petition


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

PHILIPPINE AIRLINES: Questions on value of PAL for Cathay
PHILIPPINE T&T: Agreement with creditors on debt


* S I N G A P O R E *

POKKA CORP: Results announcement
QAF LTD: Share premium account cancelled
SINGAPORE AIRLINES: Lower profits expected
URACO HOLDINGS: May have trouble repaying note


* T H A I L A N D *

BANGKOK BANK PCL: Results announcement
THAI DANU BANK: Results announcement
THAI FARMERS BANK PCL: Results announcement


=================================
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 the petition was August 27, 1998.    


BIJOU FILMS (CHINA) LIMITED: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that Bijou Films
(China) Limited is undergoing a companies winding-up
proceedings (No 594 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 the petition was August 26, 1998.    


GENUINE OCEAN TRADE LIMITED: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that Genuine
Ocean Trade Limited is undergoing a companies winding-up
proceedings (No 598 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 the petition was August 26, 1998.    


GUANGDONG INTERNATIONAL: PBOC probes Gitic crash
------------------------------------------------
The Hong Kong Monetary Authority has widened the scope of
its survey of SAR banking exposure to mainland companies in
light of the collapse of Guangdong International Trust and
Investment Corp (Gitic).

A spokesman said a form had been sent to all authorized
institutions inquiring into their exposure to non-bank
mainland companies. The survey covered Gitic and its
subsidiaries, other international trust and investment
corporations (Itics) and their subsidiaries, state,
provisional and municipal companies, red chips, H shares
and other mainland entities.

There is growing concern over whether the banking sector
will suffer as a result of Beijing's hardline policy on
financial reform, which is likely to see more closures of
poorly regulated Itics.


GUANGZHOU ETHYLENE: Ethylene unit claims rescuer
------------------------------------------------
Guangzhou Ethylene should have no problem repaying its
foreign and domestic loans if the proposed merger with
Sinopec Guangzhou Petrochemical Complex (GPC) is approved,
a GPC official said. The assurances came from the president
of GPC, Hong Zhiming, under a rescue package negotiated by
the Guangzhou municipal government and Sinopec.

It is not yet known how Guangzhou Ethylene pays its loans
and an estimated 500 million yuan of annual interest, as it
stopped production last November. Its debt portfolio
includes a US$35 million syndicated loan arranged by SocGen
Asia, which requires repayment from August this year.

Guangzhou International Trust and Investment Corp., the
fund-raising arm of the Guangzhou municipal government that
defaulted on a $30 million loan repayment, acts as
guarantor on the loan.

Guangzhou Ethylene, often cited as on of the biggest failed
investment in Guangzhou, cost about 8.37 billion yuan but
only 1.3 billion yuan was shareholders' equity with the
remainder being debt. Bankers here said most of the debt
was believed to be domestic loans.


HONOU TRAVEL SERVICES COMPANY LIMITED: Winding-up order
-------------------------------------------------------
A winding-up order notice is hereby given that Honou Travel
Services Company Limited is undergoing a companies winding-
up proceedings (No 595 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 the petition was August 26, 1998.    


SINOMEX (HONG KONG) LIMITED: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that Sinomex
(Hong Kong) Limited is undergoing a companies winding-up
proceedings (No 552 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 the petition was August 11, 1998.    


VAXHOLM: Law firm accused of blunder on $20m loan
-------------------------------------------------
According to the SCMP, law firm Johnson Stokes & Master has
been called into the Court of First Instance by mainland  
state-owned company Foshan Hua Da Industrial for causing
loss and damage. Foshan's legal counsel Edward Chan King-
sang, SC, said the company had extended the $20 million
loan in May 1992 to Vaxholm, the owner of a prime slice of
Causeway Bay land.

Vaxholm had mortgaged the land to First Pacific Bank to
secure loans, leaving an outstanding sum of $70 million.
Interest was outstanding and the bank was demanding
payment. Vaxholm had no money to pay and was faced with
foreclosure unless the $20 million loan could be extended
by Foshan, it was alleged. The loan was given to China East
Investment, run by a Vaxholm director, so as not to affect
Vaxholm's creditworthiness. Security proposed on the loan
was a 65 per cent share holding in Vaxholm.

Johnson Stokes & Master, engaged as Foshan's solicitor, was
allegedly asked to verify the facts relating to the
property and whether the proposed loan was feasible,
secured and safe. An urgent sum of $8.5 million was
extended to Vaxholm at the end of May that year, followed
by four further loans between June and August, totalling
$20 million. Foshan contends that the share certificates
were never delivered and the money was not repaid.

On August 5, 1993, Vaxholm agreed to sell the property for
$140 million to a company named Sunny Fund. Foshan launched
a legal claim to recoup the $20 million loan. After various
settlement agreements, Foshan received the share
certificates, but the transfer was not completed following
an objection from L. Hoffman Holding, which had a 35 per
cent stake in Vaxholm. Foshan claims its solicitors failed
to properly advise the company, which was ignorant of Hong
Kong laws.

It alleges the solicitors' defence is that the state-owned
company was so determined to make the loan, despite all
caution and warning, it went ahead regardless.


=========
J A P A N  
=========

MITSUBISHI ESTATE: Moody's downgrades real-estate firms
-------------------------------------------------------
Moody's Investors Service Inc. downgraded the long-term
debt ratings of five Japanese real-estate companies.
Moody's said it lowered the long-term debt ratings for
Mitsubishi Estate Co. to single-A from single-A1, Mitsui
Fudosan Co. to Baa2 from single-A3, Sumitomo Realty &
Development Co. to Ba3 from Ba1, Tokyo Tatemono Co. to
single-B2 firm Ba3, for Tokyu Land Corp. to single-B1 from
Ba1.

The downgrades reflect concerns that the deflationary
Japanese economy will place additional pressures on
property companies' earnings and asset values, and that the
companies' debt is unlikely to be significantly reduced in
the medium term. As a result, their debt-protection
capabilities will remain under pressure, Moody's said.


MITSUBISHI MOTORS: To close US regional credit offices
------------------------------------------------------
Mitsubishi Motor Sales of America Inc. said it will close
all five regional offices of its financing unit, Mitsubishi
Motors Credit of America Inc., as part of a continuing
restructuring effort. The US sales unit of Japanese auto
maker Mitsubishi Motors Corp. said certain functions of the
credit unit will be centralized at the latter's
headquarters in Cypress, California, while some positions
will be moved to the sales unit's regional offices by June.
The sales unit said the restructuring measures are part of
its efforts to improve its financial standing, as well as
improve relations with customers, dealers and employees.


MITSUI FUDOSAN: Moody's downgrades real-estate firms
----------------------------------------------------
Moody's Investors Service Inc. downgraded the long-term
debt ratings of five Japanese real-estate companies.
Moody's said it lowered the long-term debt ratings for
Mitsubishi Estate Co. to single-A from single-A1, Mitsui
Fudosan Co. to Baa2 from single-A3, Sumitomo Realty &
Development Co. to Ba3 from Ba1, Tokyo Tatemono Co. to
single-B2 firm Ba3, for Tokyu Land Corp. to single-B1 from
Ba1.

The downgrades reflect concerns that the deflationary
Japanese economy will place additional pressures on
property companies' earnings and asset values, and that the
companies' debt is unlikely to be significantly reduced in
the medium term. As a result, their debt-protection
capabilities will remain under pressure, Moody's said.


ORIENT CORP: To increase debt issues
------------------------------------
Kyodo News reports Orient Corp. plans to increase debt
issues backed by assets as a way to reduce its reliance on
commercial banks for financing, officials of the major
consumer credit company said Wednesday. The Tokyo company
intends to meet 300 billion yen in funding needs through
such debt issues at the end of March 1999, rising to 500
billion yen two years thereafter and eventually to 1
trillion yen at the end of March 2003, roughly five times
the current level of 220 billion yen, they said. In
contrast, bank borrowings will be reduced by some 1
trillion yen in the same five-year period to around 1.7
trillion yen, the officials said. Consumer credit firms
like Orient and leasing companies are selling to investors
securities backed by the credit they have extended.

At the end of September, Orient had 2.74 trillion yen in
bank borrowings, the largest exposure to bank loans among
Japan's nonbank financing companies. The amount also
includes 156 billion yen in loans from the troubled Long-
Term Credit Bank of Japan, whose fate as a going concern
remains uncertain, as it is seen likely to be placed under
temporary state control.


SUMITOMO REALTY: Moody's downgrades real-estate firms
-----------------------------------------------------
Moody's Investors Service Inc. downgraded the long-term
debt ratings of five Japanese real-estate companies.
Moody's said it lowered the long-term debt ratings for
Mitsubishi Estate Co. to single-A from single-A1, Mitsui
Fudosan Co. to Baa2 from single-A3, Sumitomo Realty &
Development Co. to Ba3 from Ba1, Tokyo Tatemono Co. to
single-B2 firm Ba3, for Tokyu Land Corp. to single-B1 from
Ba1.

The downgrades reflect concerns that the deflationary
Japanese economy will place additional pressures on
property companies' earnings and asset values, and that the
companies' debt is unlikely to be significantly reduced in
the medium term. As a result, their debt-protection
capabilities will remain under pressure, Moody's said.


TOKYO TATEMONO: Moody's downgrades real-estate firms
----------------------------------------------------
Moody's Investors Service Inc. downgraded the long-term
debt ratings of five Japanese real-estate companies.
Moody's said it lowered the long-term debt ratings for
Mitsubishi Estate Co. to single-A from single-A1, Mitsui
Fudosan Co. to Baa2 from single-A3, Sumitomo Realty &
Development Co. to Ba3 from Ba1, Tokyo Tatemono Co. to
single-B2 firm Ba3, for Tokyu Land Corp. to single-B1 from
Ba1.

The downgrades reflect concerns that the deflationary
Japanese economy will place additional pressures on
property companies' earnings and asset values, and that the
companies' debt is unlikely to be significantly reduced in
the medium term. As a result, their debt-protection
capabilities will remain under pressure, Moody's said.


TOKYU LAND: Moody's downgrades real-estate firms
------------------------------------------------
Moody's Investors Service Inc. downgraded the long-term
debt ratings of five Japanese real-estate companies.
Moody's said it lowered the long-term debt ratings for
Mitsubishi Estate Co. to single-A from single-A1, Mitsui
Fudosan Co. to Baa2 from single-A3, Sumitomo Realty &
Development Co. to Ba3 from Ba1, Tokyo Tatemono Co. to
single-B2 firm Ba3, for Tokyu Land Corp. to single-B1 from
Ba1.

The downgrades reflect concerns that the deflationary
Japanese economy will place additional pressures on
property companies' earnings and asset values, and that the
companies' debt is unlikely to be significantly reduced in
the medium term. As a result, their debt-protection
capabilities will remain under pressure, Moody's said.


YAMAKICHI SECURITIES: Files for bankruptcy protection
-----------------------------------------------------
Yamakichi Securities Co. filed for bankruptcy and court
protection with Tokyo District Court, a regional office of
the Finance Ministry said. The regional office said it
ordered the small brokerage firm to suspend its operations.
Officials at Yamakichi weren't available to provide further
details. According to the Kanto Local Finance Bureau, which
oversees brokerage houses based in the Tokyo metropolitan
area, Yamakichi's financial standing has deteriorated in
recent months because of declines in its brokerage
commissions.


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

CHUNGNAM GAS: Starts creditor reconciliation
--------------------------------------------
The Taechon District Court advertised in the Korean
language Maeil Kyungje that the Chungnam Gas Company
started creditor reconciliation procedure. The creditors
have until November 21 to file their claims. The company's
address is 210 Chungchon-dong, Chung-gu, Taechon-shi and
the president is Mr. Shin Young-chan.


JINRO COORS: Coors gives Jinro creditors ultimatum
--------------------------------------------------
The Korea Times reports Coors Brewing Company has sent a
letter to the main creditor of Jinro Coors Brewing Company
that it is intending to withdrawal its offer to invest $100
unless progress is made on the creditors' re-capitalization
of the brewery. The letter sent to the Korea Development
Bank (KDB) set a deadline of November 6.  

Last June, it was reported that conditions related to this
takeover and investment in Korea's third largest brewery
would be conditional on its creditor banks writing off more
than half of its $481 million in debts and convert the rest
of the debts into equity. The senior vice president of
Coors was cited as stressing the importance of immediate
action by creditors in order to prevent damage to Jinro
Coors' competitive viability.  

Jinro Coors Brewing Co. holds 20 percent of Korea's beer
market and is currently operating under court receivership.
It was started as a joint venture between Coors and Korea's
Jinro conglomerate. However, Coors sold its 33 percent
ownership in the Jinro Coors to Jinro when Jinro entered a
financial crisis earlier this year.


KIA MOTORS: Hyundai needs 7.6 trillion Won for Kia
--------------------------------------------------
Reports in the Korea Herald and the Korea Times stated that
Hyundai Motors Company, Korea's largest automobile
manufacturer that was named this week as the winner of the
auction of the bankrupt Kia Motors Company and its sister
bus and truck maker Asia Motors Company, will have to come
up with a to total of 7.6 trillion won for these companies.

According to creditor banking sources, Hyundai needs to
come up with 1.1781 trillion won to purchase the
controlling interest in Kia and Asia at the price it bid in
the auction (5,500 won per share). Hyundai will also have
to bear about 1.7 trillion won in Kia debts (assuming
creditors allow a 7.3 trillion won debt write-off). Once
Hyundai takes over Kia and Asia, it will have to repay back
principle and interest of on these debts in installments
over seven years following a three-year grace period.  

Hyundai will also be liable for 4.4 trillion won in public-
interest bonds, which are obligations incurred by Kia and
Asia during the their court receivership process, as well
as 351.1 billion won in bonds that Kia and Asia issued
earlier.


KIA MOTORS: Korea sentences former chairman to seven years
----------------------------------------------------------
Reuters reports a former chairman of South Korea's Kia
Group, Kim Sun-hong, has been sentenced to seven years in  
jail on charges including misappropriation and embezzlement
of corporate funds, a court official said. Lee Ki-ho,
president of the group's planning and coordinating office,
and Han Sung-jun, former president of Kia Motors, were also
sentenced on similar charges to 3.5 years and three years
in jail respectively, the official said. Prosecutors
arrested the former Kia executives last May for leaving  
indiscriminate over-investment by Kia affiliates unchecked
at the conglomerate, whose business is mostly in the
automotive sector.

Former Chairman Kim was held responsible for using
corporate funds to buy shares in Kia affiliates to maintain
management of the group and for authorising cross-payment
guarantees among affiliates between 1995 and 1997.

Late last year, creditor banks put the Kia Group under a
special anti-bankruptcy pact while demanding Kim hand over
all managerial rights over the group's units. Kim later
resigned and creditors put Kia and Asia Motors under court
receivership.


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

PENAJAMAS SDN BHD: Winding-up petition
--------------------------------------
Camel Foam Industries Sdn Bhd on 31/3/98 petitioned for the
winding-up of Penajamas Sdn Bhd. The petition is directed
to be heard on 18/12/98.


REKAPACIFIC BHD: Winding-up petition
------------------------------------
RHB Equities Sdn Bhd on 9/9/98 petitioned for the winding-
up of Rekapacific Bhd (listed on the KLSE). The petition is
directed to be heard on 11/11/98.


RENONG BHD: Land sale cancelled
-------------------------------
Singapore Business Times reports Renong Bhd said the
proposed disposals of two parcels of land by its unit
Prolink Development Sdn Bhd to Glomac Consolidated Sdn Bhd
and Mega Grand Sdn Bhd have been terminated. Renong told
the Kuala Lumpur Stock Exchange that the termination was
due to the non-fulfilment of all conditions outlined in the
agreements within the agreed time period. Renong said it
has made full provisions for the financial effects of the
termination in its unaudited accounts for the year ended
June 30.


TAIPING CONSOLIDATED: Explains why it took up lower offer
---------------------------------------------------------
The New Straits Times reports as Taiping Consolidated Bhd
yesterday explained why it chose a lower offer for its
three prime properties in Kuala Lumpur, the party which
made the higher offer said its offer was still valid.

Taiping Consolidated said it took up YTL Corporation Bhd's
RM323 million offer rather than the RM420 million offered
by a group of Taiwanese and Hong Kong investors because YTL
also came up with a "composite scheme". She added that this
would likely lead to YTL owning a substantial stake in  
Taiping Consolidated.

Cash-strapped Taiping Consolidated and YTL sealed a deal
for the sale of Lot 10 and Starhill shopping centres and
546-room J.W. Marriott Hotel, all located in Kuala Lumpur's
Golden Triangle, on Tuesday. Besides the injection, the
restructuring also includes an arrangement and compromise
with Taiping Consolidated's hire-purchase creditors and
unsecured  creditors.

Meanwhile, Datuk Tan Jake Chuan, representative of RNR (HK)
Ltd, the firm which made the RM420 million offer, said his
group was disappointed with Taiping Consolidated's
decision. In a telephone interview yesterday, he, however,
confirmed that RNR's offer was still valid and his group
was awaiting a response from Taiping Consolidated.


TIGA MUTIARA INDUSTRIES (M) SDN BHD: Winding-up petition
--------------------------------------------------------
Laris Pesona Sdn Bhd on 2/9/98 petitioned for the winding-
up of Tiga Mutiara Industries (M) Sdn Bhd. The petition is
directed to be heard on 19/11/98.


ZABIDIN SDN BHD: Winding-up petition
------------------------------------
System Communication Engineering Sdn Bhd on 23/6/98
petitioned for the winding-up of Zabidin Sdn Bhd. The
petition is directed to be heard on 1/12/98.


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

PHILIPPINE AIRLINES: Questions on value of PAL for Cathay
---------------------------------------------------------
According to the SCMP, Cathay Pacific Airways continues to
weigh its options in the possible rescue of troubled
Philippine Airlines (PAL) behind closed doors. Despite a
25-member due diligence team, Cathay had not made a
decision on how it would proceed or whether it would
proceed at all.

Some analysts questioned whether a deal would make
financial sense for Cathay or not, with domestic airline
service in a scattered island nation with a history of
labor militancy and political activism.

PAL's immediate problem is its crushing debts. Further
troubles emerged yesterday as Philippine regulators entered
into a war of words with major PAL creditor US Export-
Import Bank, ordering the US government agency to return
two Boeing 747's seized earlier this month.

Cathay corporate development director Tony Tyler has spoken
with a number of local aviation analysts in the past week,
reassuring them that Cathay would proceed with a deal only
if the numbers make sense.

Analysts question if a competing international carrier
gaining control of PAL would threaten Cathay's position as
a prominent regional carrier.

It has been said that it would be brave for anyone to get
involved in PAL, considering the fact that Manila is an
end-point destination rather than a stopover hub, hence the
dependence on domestic island hopping, the political
baggage in the form of unprofitable domestic routes, the
limited purchasing power of Filipinos and the possible ire
of Filipino voters if government subsidies were called for.

The Hong Kong Standard, however, states that Cathay sees
windfall from proxy flights. The report said that Cathay
Pacific said yesterday its 12-day charter operation to fly
domestic routes in the Philippines following the collapse
of PAL would boost its passenger revenues by 58 per cent in
the Hong Kong-Philippines sector. This would help Cathay
cushion its second half results. Cathay lost HK$175 million
in the first half of 1998, its first ever loss. Its
cumulative passenger load factor so far this year has been
67.8 per cent.


PHILIPPINE T&T: Agreement with creditors on debt
------------------------------------------------
According to the SCMP, Philippine Telegraph and Telephone
Corp (PT&T), the smallest of the country's publicly traded
fixed-line operators, has agreed to negotiate restructuring
six billion pesos in debt. During negotiations over the
repayment schedule, the creditors that include Philippine
National Bank, United Coconut Planters Bank and
International Finance Corp., the World Bank's private
investment arm, will not be allowed to demand any of PT&T's
outstanding obligations.

Bear Stearns (Asia) and Buenaventura Filamor Echauz, a
local consulting firm, have been hired to help prepare the
debt restructuring and the possible infusion of additional
capital.

PT&T provides long distance data communications and
telegraph services in addition to operating a fixed phone
line network.

The company halted debt payments in July under an earlier
agreement with more than 30 creditors. The company has
credit lines of US$30 million each with Chemical Bank and
Bank Leumi Le-Israel and $120 million of dollar-denominated
debts, which have become 63 per cent more expensive to
repay because of the peso's devaluation.

It said it had been hit by its inability to raise fresh
money from shareholders due to a dispute with a minority
shareholder, Singapore-based A2 Telecommunications
International Holding, which alleges that contracts with
United States-based Qualcomm are disadvantageous to both
PT&T and Repulic Telecom, which controls more than three
quarters of PT&T.

The company's class A shares, reserved for Filipinos, and
its class B shares have lost more than three quarters of
their value on the Philippine stock exchange since April
16.


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

POKKA CORP: Results announcement
--------------------------------
Singapore Business Times says food and drinks manufacturer
Pokka Corp sank deeper into the red with an interim loss of
$2.43 million, compared to $1.07 million a year ago. It
expects its performance in the second half "to be about the
same level as that of the first half". Pokka said turnover
for the half-year ended July 31 rose 24 per cent to $42.35
million. Pre-tax earnings rose 14 per cent to $3.13
million.

The company racked up losses from subsidiary companies in
Malaysia and Suzhou, and higher bank interest expenses to
finance the acquisition of Polyethylene Therephthalate
(PET) equipment to make plastic food and drink containers
and bottles.


QAF LTD: Share premium account cancelled
----------------------------------------
Singapore Business Times cites a Reuters report that
Indonesia-linked food company QAF Ltd yesterday said an
extraordinary general meeting had agreed to cancel QAF's
share premium account in order to write off its debt. QAF
said in a statement the $54.86 million credited to its
share premium account would be cancelled in order to write
off accumulated losses in the audited balance sheet of the
company on Dec 31, 1997. QAF first made its proposal to cut
the share premium account in early September. In December
last year, QAF had accumulated losses of about $75.3
million. The share premium reduction would cut accumulated
losses to $20.4 million as of Dec 31, 1997.


SINGAPORE AIRLINES: Lower profits expected
------------------------------------------
Singapore Business Times reports Singapore Airlines (SIA)
is expected to announce lower profits this week, its
performance hit by Asia's crisis and a limp global economic
climate, analysts said yesterday. They said the Asian
crisis had put pressure on its yields and would continue to
do so.

SIA is scheduled to announce its results for the six months
to September tomorrow and analysts said they would be
closely watched because these are the first which entirely
reflect an Asian crisis which fully gripped the region a
year ago.

Analysts surveyed by Reuters gave mainly full-year
forecasts ranging from $661 million to $800 million. SIA
posted a net profit of $1.04 billion for the year to March
31, 1998, up from $1.03 billion previously. Its net profit
for the first half of 1997 was $615.9 million, up 9.9 per
cent over 1996.


URACO HOLDINGS: May have trouble repaying note
----------------------------------------------
Singapore Business Times reports Uraco Holdings yesterday
said it may breach the terms of its $45 million floating
rate note issue as its net worth will fall below the $86
million stipulated under the trust deed for the issue. To
rectify such a breach, it is "considering" an issue of
5,000 redeemable convertible preference shares to
substantial shareholder and non-executive director Chay
Kwong Soon. The shares, which are convertible into new
ordinary shares, will be issued at $1,000 each.

The net proceeds of $4.8 million will be used to repay
loans and for working capital. Mr Chay, whose Uraco stake
was last reported at just below 20 per cent, is also one of
the founders of Creative Technology.


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

BANGKOK BANK PCL: Results announcement
--------------------------------------
Bangkok Bank PCL reported a 9.99 billion baht loss for the
third quarter, compared with a 2.93 billion baht profit in
the same period last year. The bank has now recorded losses
totaling about 26.38 billion baht in the first nine months
of this year.


THAI DANU BANK: Results announcement
------------------------------------
Thai Danu Bank posted a third-quarter loss of 491.1 million
baht Tuesday against 325.9 million baht profits in the same
period a year earlier, due to rising levels of problem
loans and high deposit interest rates. Thai Danu Bank said
in a filing to the Stock Exchange of Thailand that rising
levels of non-performing loans had hit its earning.


THAI FARMERS BANK PCL: Results announcement
-------------------------------------------
Thai Farmers Bank PCL, Thailand's third biggest commercial
bank, said it lost 19.4 million baht in the third quarter
compared with net profit of 2.59 billion baht a year
earlier. The bank attributed the loss to a loan loss
provision of 11 billion baht to cushion against rising bad
debts amid Thailand's worst recession in decades. Thai
Farmers said a loss on equities investment of 6.74 billion
baht also contributed to the loss.


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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