/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/981026.MBXT 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 26, 1998, Vol. 1, No. 172 Headlines * C H I N A & H O N G K O N G * CHINESE ESTATE HOLDINGS: To continue asset sell-off GUANGDONG ENTERPRISES (HOLDINGS): S&P downgrades debt GUANGDONG INTERNATIONAL (HK): May not cover debts GUANGZHOU-SHENSHEN SUPERHWY: Placed on CreditWatch NISSHO IWAI (HK): Sues Gitic for US$18.8 million repayment SHARP BRAVE: Sharp Brave rescue launched * I N D O N E S I A * ASTRA INTERNATIONAL: Urged to produce debt-reform plan * J A P A N * ALL NIPPON AIRWAYS: Results announcement BANK OF YOKOHAMA: Moody's places banks under review FUKUOKA CITY BANK: Moody's places banks under review GUNMA BANK: Moody's places banks under review HASEKO CORP: Posts Y4 bn interim net loss JAPAN STORAGE BATTERY: JRII downgrades debt JOYO BANK: Moody's places banks under review JUSCO COMPANY: Moody's cuts debt ratings KYOEI LIFE: S&P assigns BB- rating LONG TERM CREDIT: First bank nationalized under new law LONG TERM CREDIT: LTCB chiefs face 'dubious loans' probe LONG TERM CREDIT: Pasona to buy LTCB Research Institute MR MAX CORP: Debt ratings cut NEC CORP: Results announcement NIKKO SECURITIES: Results announcement NOMURA SECURITIES: Announces layoffs amid huge losses SUMITOMO BANK: Results announcement SURUGA BANK: Moody's places banks under review YAMAKICHI: Yamakichi files for bankruptcy * K O R E A * HANMI FINANCE: Firm to liquidate JINRO COORS: Coors may have backed out of Jinro deal KIA MOTORS: Banks expected to OK Kia deal KOHAP GROUP: Creditors convert Kohap debt into equity MIWON FRU: Firm to liquidate SAMSUNG MOTORS: Rejects calls for car unit's closure * M A L A Y S I A * KIM TENG CREDIT SDN BHD: Voluntary winding-up RENONG BHD: Ditches land deal RENONG BHD: Positive ratings for Renong and UEM TONGKAH HOLDINGS BHD: Results - 30.6.98 WEMBLEY INDUSTRIES HOLDINGS BHD: Results - 30.6.98 WONG SAN CONSTRUCTION SDN BHD: Voluntary winding-up ZAITUN BHD: Results - 30.6.98 * P H I L I P P I N E S * SIME DARBY PILIPINAS: PSE says it won't OK delisting bid * S I N G A P O R E * OSPREY MARITIME LIMITED: Sells two ships for $US90 million * T H A I L A N D * BANGKOK EXPRESSWAY: Toll increase sends shares down PARIBAS ASIA EQUITY: Closes securities sales division THAI PETROCHEMICAL INDUSTRY: Close to restructuring deal TOSHIBA (THAILAND): Sheds workers after sales cut by half ================================= C H I N A & H O N G K O N G ================================= CHINESE ESTATE HOLDINGS: To continue asset sell-off --------------------------------------------------- Chinese Estate Holdings will continue selling non-core assets, having already reduced debts by up to $300 million, according to executive director Thomas Lau. He said the company would sell scattered properties such as office floors at Harcourt House in Wan Chai at the right price. The firm suffered a $2.26 billion loss and provision from securities trading last year. It was offloading noncore assets as part of a $1 billion debt-reduction exercise. It planned to reduce debt to $3 billion from $4 billion. He said more than 90% of its equity derivatives contracts were closed and most of the losses were reflected in the provisions it made in its interim results. GUANGDONG ENTERPRISES (HOLDINGS): S&P downgrades debt ----------------------------------------------------- The Asian Wall Street Journal reports that Standard and Poor's Rating Service has lowered the long-term debt rating and the senior unsecured debt rating on Guangdong Enterprises (Holdings) Ltd. from BB to CCC+. This ratings move reflects the fact that contracting credit availability of China-linked companies in the wake of the recent closure of the Guangdong International Trust & Investment Corporation has undermined Guangdong Enterprises' access to external liquidity. This vulnerability to decreasing access to external funds is compounded by the company's aggressive debt leverage and the weakening business environment in Hong Kong and Guangdong. GUANGDONG INTERNATIONAL (HK): May not cover debts ------------------------------------------------- The Asian Wall Street Journal reported that an partner in the provisional liquidators of the Guangdong International Trust & Investment Corporation's (GITIC) two main subsidiaries in Hong Kong has said that they may not have enough assets to cover their liabilities of HK $6.6 billion (US$ 851.6 million). The article also stated that it will be another month before the liquidators finish compiling a list of GITIC's Hong Kong assets. GITIC, the official investment arm of the Guangdong provincial government, was shut down earlier this month because of its inability to pay maturing debt obligations. GITIC is the second largest of China's trust and investment companies, and had about $500 million in short term loans coming due. There is also concern in Hong Kong due to recent statements from the Chinese State Administration for Foreign Exchange (SAFE) that debts that were not originally registered with it would not be guaranteed. This concern arises as the borrowings by GITIC's Hong Kong subsidiaries did not require SAFE's approval, and hence there is a fear that such loans may not be guaranteed. Earlier this week, representatives from 38 banks met in Hong Kong to consider joint action in lobbying Hong Kong and Beijing regulators in claiming repayment of loans to GITIC's subsidiaries. A coordinating committee was organized which consisted of representatives of 10 banks at this meeting. GUANGZHOU-SHENSHEN SUPERHWY: Placed on CreditWatch -------------------------------------------------- Standard & Poor's today placed the double-B credit rating on Guangzhou-Shenzhen Superhighway (Holdings) Ltd.'s (GS Superhighway) US$200 million subordinated notes due 2004 and US$400 million subordinated notes due 2007 on CreditWatch with negative implications. The recent closing of Guangdong International Trust & Investment Corp. (GITIC) has the potential to negatively affect the US$600 million of outstanding bonds. Calls upon GITIC have been made on a periodic basis over the past several years, and these payments comprised approximately 7% of the joint venture's total debt service in 1998. A default on the bank loans would trigger a cross default on the notes. A default on the bank loans would entitle secured lenders to accelerate the loans and to realize their collateral security, which includes a charge on assets and shares in the joint venture. NISSHO IWAI (HK): Sues Gitic for US$18.8 million repayment ---------------------------------------------------------- Kyodo News reports Nissho Iwai Hong Kong Corp. filed writs Thursday against three subsidiaries of China's Guangdong International Trust and Investment Corp. (Gitic) for loan repayments totaling HK$146 million (US$18.8 million). A spokesman for the Hong Kong unit of Japan's Nissho Iwai Corp., who requested anonymity, told Kyodo News that he believes the loans would be completely recovered. The three cases involve HK$54.28 million loaned to King Luck Enterprises Ltd., HK$40.26 million to Standard Corporation Ltd., and HK$51.78 million to Winrise Properties Ltd. Nissho Iwai will seek transference of ownership of the collateral if the companies fail to repay the loans, the spokesman said. Gitic was a flagship fund-raising arm of the Guangdong provincial government, but was asked to shut down by Chinese Premier Zhu Rongji on Oct. 12 as part of the state's financial reform. SHARP BRAVE: Sharp Brave rescue launched ---------------------------------------- According to the SCMP, Northern International Holdings has launched a rescue bid with the proposed compromise of debts with creditors for troubled wholly owned subsidiary Sharp Brave, which owes $133.2 million to 199 creditors and is facing a winding-up order. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: Urged to produce debt-reform plan ------------------------------------------------------ According to the SCMP, bankers and financiers welcomed Astra International's meeting with its creditors yesterday but said the company's debt-restructuring plans were moving too slowly. Astra met creditors in Singapore to outline a proposed restructuring of the group's 120 companies and a schedule for further meetings with creditors to negotiate the group's huge debt. It owes US$2 billion abroad and two trillion rupiah at home. The meeting, which had company president director Rini Soewandi and the group's financial advisers present, did not offer any detailed proposals for debt restructuring. Bankers at the meeting said a debt revamp plan, which needed to include details such as repayment schedules, interest rates and securities for loans, might not emerge until next month. They said once the proposals were presented to creditors, negotiations could begin. The bankers said the talks would possibly last for two to three months, depending on whether the large group of creditor banks could reach a consensus on Astra's proposals. Astra said yesterday it was seeking a five-year repayment period and a two-year repayment period grace period from creditors, but bankers said the proposal was very basic and preliminary. One said Astra has many things to clear up and was having negotiations with Bank Indonesia in terms of the group's banks, which needs to be clarified first. Bankers said that it was a good sign that Astra had not asked for debt forgiveness. Some of them also lauded Astra's transparency and professionalism in the handling of its debt repayments. The company told its creditors its 120 units would be divided into three categories under its proposals. The aim of the restructuring would be to limit lenders' concerns about cash controls and to maximise debt repayment while allowing time for the company to recover. ========= J A P A N ========= ALL NIPPON AIRWAYS: Results announcement ---------------------------------------- The Nihon Keizai newspaper reports All Nippon Airways Co. expects to posts an operating loss of 2-3 billion yen in the year ending March, compared with profit of 646 million yen a year earlier. The projected first operating loss in 17 years follows a nearly 50% drop in first-half operating profit to 6 billion yen due to lower air fares. BANK OF YOKOHAMA: Moody's places banks under review --------------------------------------------------- Moody's Investors Service said that it placed under review for possible downgrade the credit ratings and financial strength ratings of five Japanese regional banks: Fukuoka City Bank Ltd, Joyo Bank Ltd, Bank of Yokohama Ltd, Gunma Bank Ltd, and Suruga Bank Ltd. Moody's said the review was prompted by concerns that the continuous deterioration of Japan's economy and financial markets may further affect the financial fundamentals of these regional banks. Moody's said the ratings Bank of Yokohama's single-A-3 long-term deposit rating, single-A-3 senior unsecured debt rating, and single-D-plus financial strength have been placed under review. FUKUOKA CITY BANK: Moody's places banks under review ---------------------------------------------------- Moody's Investors Service said that it placed under review for possible downgrade the credit ratings and financial strength ratings of five Japanese regional banks: Fukuoka City Bank Ltd, Joyo Bank Ltd, Bank of Yokohama Ltd, Gunma Bank Ltd, and Suruga Bank Ltd. Moody's said the review was prompted by concerns that the continuous deterioration of Japan's economy and financial markets may further affect the financial fundamentals of these regional banks. Moody's said the ratings of Fukuoka City Bank's Baa1 long- term deposit rating and single-D bank financial strength rating have been placed under review. GUNMA BANK: Moody's places banks under review --------------------------------------------- Moody's Investors Service said that it placed under review for possible downgrade the credit ratings and financial strength ratings of five Japanese regional banks: Fukuoka City Bank Ltd, Joyo Bank Ltd, Bank of Yokohama Ltd, Gunma Bank Ltd, and Suruga Bank Ltd. Moody's said the review was prompted by concerns that the continuous deterioration of Japan's economy and financial markets may further affect the financial fundamentals of these regional banks. Moody's said the ratings of Gunma Bank's single-A1 long term deposit rating, single-A1 senior unsecured debt rating, Prime 1 short term deposit rating, and single-C financial strength rating have been placed under review. HASEKO CORP: Posts Y4 bn interim net loss ----------------------------------------- The Nihon Keizai newspaper reports Haseko Corp. appears to have posted a net loss of about 4 billion yen for the half year ended September, down from 1.6 billion yen in profit a year ago. The company initially forecast a 200 million yen profit. The net loss was attributed to 4 billion yen in realized and appraisal losses on its securities holdings. Sales are estimated to have fallen 17% to about 140 billion yen, down 10 billion yen from the original forecast. The major condominium builder, however, estimated pretax profit rose 36% to 3 billion yen, despite a 3 billion yen loss in its real estate operations. This was due to improved profitability on construction projects and 1 billion yen in proceeds from the early redemption of convertible bonds. The Tokyo-based company is estimated to have had outstanding interest-bearing debts totaling 453 billion yen at the end of September. Its net interest payments in the fiscal first half totaled 3.5 billion yen, down from 4.7 billion yen a year earlier, as a result of reduced fund procurement costs. JAPAN STORAGE BATTERY: JRII downgrades debt ------------------------------------------- The Asian Wall Street Journal reports Japan Rating & Investment Information Inc. has downgraded the long-term debt rating of the Japan Storage Battery Co. from A- to BBB. The company's commercial paper rating was also reduced from A-1 to A-2. This downgrade affects 20 billion yen million of shelf registration, 10 billion yen of unsecured straight bonds, and 15 million yen of domestic commercial paper. The move was reportedly due to a decline in earnings potential due to falling prices and increased foreign competition. JOYO BANK: Moody's places banks under review -------------------------------------------- Moody's Investors Service said that it placed under review for possible downgrade the credit ratings and financial strength ratings of five Japanese regional banks: Fukuoka City Bank Ltd, Joyo Bank Ltd, Bank of Yokohama Ltd, Gunma Bank Ltd, and Suruga Bank Ltd. Moody's said the review was prompted by concerns that the continuous deterioration of Japan's economy and financial markets may further affect the financial fundamentals of these regional banks. Moody's said the ratings of Joyo Bank's single-A1 long term deposit rating, Prime-1 short-term deposit rating and single-C bank financial strength rating have been placed under review. JUSCO COMPANY: Moody's cuts debt ratings ---------------------------------------- The Asia Wall Street Journal reports Moody's Investor Service has lowered the senior unsecured long-term debt rating on Jusco Company from Baa2 to Baa3. At the same time, it reduced the Japanese shelf registration from prospective Baa2 to prospective Baa3. This downgrade affects Jusco's 85 billion yen of long-term debt and 100 billion yen of its Japanese shelf registration. Jusco is one of Japan's largest retailers, and is known for its shopping center operations. This downgrade reportedly reflects concerns that Jusco's earnings will remain under pressure in the intermediate term, stemming from deflation and weak consumer confidence. KYOEI LIFE: S&P assigns BB- rating ---------------------------------- Standard & Poor's today assigned its double-'B'-minus insurer financial strength rating to Kyoei Life Insurance Co. Ltd. The ratings service also assigned its double-'B'- minus counterparty credit rating with a negative outlook. The ratings reflect the company's marginal financial structure and weak earnings performance, partially offset by a satisfactory and resilient business position in its preferred niche markets. LONG TERM CREDIT: First bank nationalized under new law ------------------------------------------------------- Kyodo News reports Prime Minister Keizo Obuchi announced Friday that the ailing Long-Term Credit Bank of Japan (LTCB) will be nationalized to avoid severing credit lines to its longtime corporate borrowers and to avert a default on its obligations to creditors. Obuchi assured LTCB customers that their deposits, bank debentures and other claims on the bank will be fully protected even after LTCB is temporarily put under state control. Obuchi, who is empowered under new legislation to determine how to handle failed or failing banks until an independent panel is formed in December, said the government made the decision in view of the possibility that LTCB might default on its obligations to creditors. On Friday morning LTCB made an application to the government for temporary nationalization. It will be the first bank to be nationalized in Japan in the postwar era, and also the first to be put under state control under the financial system law that passed the Diet on Oct. 12. Bank of Japan (BOJ) Governor Masaru Hayami said Friday the debt repayment obligations of LTCB will be guaranteed after it becomes a "temporarily nationalized bank." LONG TERM CREDIT: LTCB chiefs face 'dubious loans' probe -------------------------------------------------------- According to the SCMP, Jiji Press said yesterday that justice ministry officials and public prosecutors are believed to be collecting information on dubious transfers of bad loans from LTCB and its non-bank affiliates to more than 40 dummy and paper units. A former LTCB executive said that countless companies were set up and bad loans were moved and kept hidden there. LTCB was expected to ask to be taken over by the state as early as today when new laws come into effect to help banks alleviate the burden of bad loans dating to the bubble economy of the late 1980s. LTCB's efforts to dispose of bad loans were led by its business promotion division and tracked only by top executives through confidential reports, and even the board of directors were not consulted about measures to retrieve bad loans. The government has been under pressure from opposition to demand banks give a clearer picture of their financial health and make management take responsibility for reckless lending. On Tuesday, five opposition legislators asked the Tokyo public prosecutor's office to file a case against senior LTCB executives for breach of trust. The legislators claim the bank lent its finance affiliate, Japan Landic, 23.4 billion yen between April and June this year, even though the firm already owed the bank outstanding loans worth more than 80 billion yen. Press reports said Tokyo's financial authorities would accept that LTCB's debts exceeded its assets if about 400 billion yen in book losses on securities holdings is counted. Japan Broadcasting reported earlier that the bank was 400 billion yen in debt last month with its assets valued at their present market price. The total is arrived at if all the bank's stocks, real estate and other property it holds are valued at today's prices. In August the bank admitted it was holding 2.82 trillion yen in risky loans, of which 444 billion yen was clearly irrevocable. LONG TERM CREDIT: Pasona to buy LTCB Research Institute ------------------------------------------------------- Kyodo News reports Pasona Inc. will purchase the think tank of financially troubled Long-Term Credit Bank of Japan (LTCB) on Dec. 1 for 1 billion yen, the major Japanese temp agency announced Thursday. After the purchase, the LTCB Research Institute will be called the Institute of Social Infrastructure, Pasona said. MR MAX CORP: Debt ratings cut ----------------------------- The Asia Wall Street Journal reports Japan Rating & Investment Information Inc. has downgraded the long-term debt rating from Mr Max Corporation from BBB- to BB+. This downgrade affects about 13 billion yen in unsecured convertible bonds due in September of 1999. Mr Max is a company operating discount stores that sell dispensable, everyday goods in Fukuoka prefecture and Kyushu. This business is clearly affected by the deteriorating economy. The company has also reportedly aggressively opened shopping centers. NEC CORP: Results announcement ------------------------------ Kyodo News reports NEC Corp. said Friday it incurred a consolidated net loss of 19.7 billion yen, or 12.35 yen per share, in the April-September first half of fiscal 1998. The leading high-technology company attributed its first interim loss since the first half of fiscal 1993 to curbed investment in communications equipment and computers by domestic firms due to the prolonged economic slump. NIKKO SECURITIES: Results announcement -------------------------------------- Bloomberg reports Nikko Securities Co. posted a group net loss of 57.72 billion yen for the half-year to Sept. 30, or a loss of 37.96 yen per share. That's slightly more than the 50 billion yen group net loss forecast by the Nihon Keizai newspaper. In the same period last year, the broker reported group net profit of 1.51 billion yen, or 1.03 yen per share. Nikkei English News reported that Nikko will sell assets worth 40 billion yen ($338.8 million) and streamline some of its units, including Nikko Research Center Ltd. and Nikko Building Co., as part of a restructuring plan. NOMURA SECURITIES: Announces layoffs amid huge losses ----------------------------------------------------- Nomura Securities announced a massive restructuring that will cut at least 2000 jobs from its payroll by early 2001. The shake-up was announced after Nomura, Japan's biggest brokerage, revealed a huge group net loss of 207.26 billion yen in the half-year to September 30, as global market turmoil ravaged all of the country's top three finance business. Nomura's losses include a US$600 million hit from its United States mortgage bond dealing. The broker's US operations took a 159.8 billion yen pretax loss in the half against a 1.7 billion yen profit last year. Elsewhere, losses at the pretax level amounted to 66.9 billion yen in Europe and 16.6 million yen in Asia. Nomura president Junichi Ujiie said the restructuring aimed at lowering personnel costs by 20%. SUMITOMO BANK: Results announcement ----------------------------------- Sumitomo Bank Ltd reported a securities-valuation loss of 23.1 billion yen for the first half ended in September. Sumitomo said that it also had an unrealized securities loss of 443.20 billion yen at the end of the half. But the bank said that the losses won't affect its earnings estimates for the term through September. SURUGA BANK: Moody's places banks under review ---------------------------------------------- Moody's Investors Service said that it placed under review for possible downgrade the credit ratings and financial strength ratings of five Japanese regional banks: Fukuoka City Bank Ltd, Joyo Bank Ltd, Bank of Yokohama Ltd, Gunma Bank Ltd, and Suruga Bank Ltd. Moody's said the review was prompted by concerns that the continuous deterioration of Japan's economy and financial markets may further affect the financial fundamentals of these regional banks. Moody's said the ratings of Suruga Bank's single-A2 long term deposit rating, Prime-1 short-term deposit rating and single-C financial strength rating have been place under review. YAMAKICHI: Yamakichi files for bankruptcy ----------------------------------------- According to the SCMP and the Hong Kong Standard, Yamakichi Securities, a regional brokerage catering to individual clients, has filed for bankruptcy protection at the Tokyo District Court. The court ordered the preservation of Yamakichi's assets and property following its filing and the Finance Ministry's bureau told the brokerage to cease all operations except the return of clients' assets. Yamakichi had liabilities of 14.44 billion yen as of March. ========= K O R E A ========= HANMI FINANCE: Firm to liquidate -------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Hanmi Finance Company, an affiliate of the Hanmi Bank, will liquidate. JINRO COORS: Coors may have backed out of Jinro deal ---------------------------------------------------- The Korea Herald cited "unconfirmed" reports that the American Coors Brewing Company backed out of its deal with the main creditors of Jinro Coors Brewing Company to invest $100 million. However, both the Korea Times and the Korea Herald reported that the jointly Korean/Belgian owned Oriental Brewery (OB) has expressed an interest in taking over Jinro Coors Brewing Company. Last June, it was reported that the Coors 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 converting the rest of the debts into equity. 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 Jinro Coors to Jinro when Jinro entered a financial crisis earlier this year. KIA MOTORS: Banks expected to OK Kia deal ----------------------------------------- The Associated Press reports creditor banks are expected to approve Hyundai Motors Co.'s takeover of bankrupt Kia Motors Corp., a top government official said Thursday. The comment by Chairman Lee Hun-jai of the Financial Supervisory Commission appeared to be a tacit government endorsement of Hyundai's bid to acquire Kia. Hyundai was named the winning bidder for Kia in an auction Monday, but its offer still must be approved by Kia's creditor banks, most of which are controlled by the government. There has been speculation that the banks might reject Hyundai's bid, which included a demand that they write off $7.3 billion of Kia's $8.4 billion debt. KOHAP GROUP: Creditors convert Kohap debt into equity ----------------------------------------------------- The Korea Times reports that the creditors of the Kohap Group have decided to convert 500 billion won in loans into to equity and convertible bonds. Of this total, 263.4 billion won worth of debt will be converted into equity, and another 236.6 billion won will be changed into convertible bonds. The Kohap Group reportedly has debts totaling 4.6 trillion won. Details of this deal include Kohap's payment of 1 trillion won in debts by selling assets to foreigners. The group will also be given a two year grace period on repayment of a portion of its debts, although it must raise at least 370 billion won to be paid immediately to creditors via the sell off of real estate. Furthermore, the group will receive financial support in the form of 160 billion won for the import of raw materials. Two of the group's subsidiaries will also be merged. The group's chairman and executives will be allowed to keep their jobs on condition that the sell-off of assets is completed on schedule. Hanil Bank decided on July 6 to place four units of Kohap group under the workout program. The units included Kohap Ltd., Kohap Petrochemical Corp., and Kohap Incorporated. MIWON FRU: Firm to liquidate ---------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Miwon Fru Company, an affiliate of Hanmi Bank, will liquidate. SAMSUNG MOTORS: Rejects calls for car unit's closure ---------------------------------------------------- According to the SCMP, a ruling coalition leader Park Tae- joon yesterday said negotiations were under way to force the demise of Samsung Motors and he expected a deal under which the auto industry would be led by Hyundai and Daewoo. A Samsung spokesman dismissed the comment as personal view, saying the group would not abandon its car-making business launched in March with an estimated start-up investment of four trillion won. The company also said it would more than double production to about 200,000 next year, and is negotiating a deal to make 100,000 cars a year on orders from its Japanese partner Nissan Motor from next year. =============== M A L A Y S I A =============== KIM TENG CREDIT SDN BHD: Voluntary winding-up --------------------------------------------- The members of Kim Teng Credit Sdn Bhd on 17/10/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 23/11/98. RENONG BHD: Ditches land deal ----------------------------- According to the SCMP, Renong is scrapping an agreement to sell two tracts of land for M$236.5 million after the buyers failed to meet terms of the deal. Renong said last month it had planned to sell land to Glomac and closely held Mega Grand, who had not been able to meet obligations under the sale and purchase agreements because of the property slump. Full provisions have been made in its consolidated accounts for the year ended June 30. The land sale was first announced in May last year. RENONG BHD: Positive ratings for Renong and UEM ----------------------------------------------- New Straits Times reports Renong Bhd and United Engineers (Malaysia) Bhd - the two parties involved in the proposed RM10.5 billion debt restructuring exercise - received positive ratings from Kenanga BNP Prime East Research Sdn Bhd. In its equity review issued yesterday, Kenanga BNP - a 50:50 parnership between K&N Kenanga Bhd and Hong Kong- based stockbroker BNP Prime Peregrine Ltd - said it had revised upwards its ratings on Renong and UEM to market performer and outperform respectively. Kenanga BNP said it had previously written down UEM's investment in Renong to zero since the latter's financial future was in "great jeopardy". "However, the proposed restructuring would lift some of the short-term concerns, thus preserving the longer-term value of Renong." TONGKAH HOLDINGS BHD: Results - 30.6.98 --------------------------------------- Tongkah Holdings Bhd. (listed in KLSE) reported a post-tax loss of RM16.184m for the year end 30.6.98 compared to a post-tax profit of RM78.128m previously. EPS fell 139% from RM0.374 to a loss per share of RM0.146. WEMBLEY INDUSTRIES HOLDINGS BHD: Results - 30.6.98 -------------------------------------------------- Wembley Industries Holdings Bhd. (listed in KLSE) reported a 117% increase of post-tax loss from RM2.885m to RM6.260m for the 6 months ended 30.6.98. Loss per share increased 130.3% from RM0.0208 to RM0.0479. WONG SAN CONSTRUCTION SDN BHD: Voluntary winding-up --------------------------------------------------- The members of Wong San Construction Sdn Bhd on 20/10/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 30/11/98. ZAITUN BHD: Results - 30.6.98 ----------------------------- Zaitun Bhd. (listed in KLSE) reported a post-tax loss of RM0.993m for the 6 months ended 30.6.98 compared to a post- tax profit of RM3.598m previously. EPS dropped 55.6% from RM0.09 to RM0.04. ===================== P H I L I P P I N E S ===================== SIME DARBY PILIPINAS: PSE says it won't OK delisting bid -------------------------------------------------------- BusinessWorld reports the Philippine Stock Exchange (PSE) said it will not delist holding firm Sime Darby Pilipinas, Inc. (SDPI) pending the approval of the Exchange's listing rules. PSE chairman Harry Liu told BusinessWorld the exchange's board, in a meeting held Wednesday, has decided not to delist SDPI. Negotiations will soon commence to discuss the requirements needed for delisting. The PSE said it will send a formal letter of inquiry to SDPI. Mr. Liu added that the PSE will not impose sanctions on the firm as earlier reported. Bourse president and chief executive officer Jose Luis U. Yulo Jr. said the firm may be charged with fines and even threatened that a case may be filed against SDPI. Sean T. O'Kelly, president of holding firm SDPI, notified the PSE that effective Tuesday, its shares will be delisted under the terms of an agreement with its principal shareholder SD Far East Ltd. ================= S I N G A P O R E ================= OSPREY MARITIME LIMITED: Sells two ships for $US90 million ---------------------------------------------------------- Singapore Business Times reports Osprey Maritime Limited has managed to sell two ships for US$90 million (S$146.1 million) as part of its efforts to reduce its massive debt, though the disposal will result in an exceptional loss of US$27.8 million. Loss per share after the exceptional loss would be 7.27 US cents from an earnings per share of 0.975 US cents previously. Net tangible assets per share would be reduced to 121.46 US cents from 129.70 US cents. Yesterday, the shipowner and operator said it had received a 10 per cent deposit for the sale and it will get the remaining 90 per cent next month. With delivery of the two large crude oil carriers next month, Osprey will sign leaseback agreements with the buyers for three years at US$21,000 per day per vessel. The buyers are Liberian companies Chalice Marine Ltd and Edgewater Maritime SA. =============== T H A I L A N D =============== BANGKOK EXPRESSWAY: Toll increase sends shares down --------------------------------------------------- The Nation reports shares of Bangkok Expressway Plc Thursday fell a further Bt4, hit by the Office of Attorney General's decision to support a government MP-initiated move to amend the expressway toll increase. As a result of the Attorney General's ruling, the governor of Expressway and Rapid Transit Authority (ETA) Somnuek Chaidejsuriya Thursday tendered his resignation. The ETA board last night called an urgent meeting to consider the toll issue. The toll rates were increased on Sept 1, 1998, by Bt10 for the urban network and by Bt15 for the suburban network. Since Oct 12, BECL, a major stock on the transport counter of the Stock Exchange of Thailand, has been falling from Bt35 to Bt27.5, down 21.43 per cent. BECL reported a loss of Bt385 million in the first six months of this year. An informed source said several parties concerned, including creditors of BECL, would have to be consulted if the toll increase could be amended. A market analyst said the possible amendment of the toll rate increase would hurt investor sentiment as a reversal would affect revenue and debt restructuring plan. PARIBAS ASIA EQUITY: Closes securities sales division ----------------------------------------------------- The Nation reports with the prolonged stock market slump in Thailand, the region has claimed another high profile managing director. Paribas Asia Equity Ltd has just closed down its securities sales division in Thailand on Tuesday and made all the sales staff redundant, including veteran managing director, Mark Greenwood. Greenwood, who has been a major securities company executive in Thailand for much of the past decade, said that Paribas Asia Equity, which was taken over by a major French bank a little more than a year ago, had decided to restructure the company's operations. Industry sources said that all regional stock sales will now emanate from the company's Hong Kong office. None of Paribas Asia Equity's Thai sales staff will be transferred overseas. The company's Thai research department's operations will be continuing. Industry sources said that the prolonged regional securities' sale slump has caused many foreign owned companies, such as Paribas Asia Equity, to reconsider major restructurings of Asian operations. Many companies have continued carrying high overheads despite precipitous revenue declines during the past two-and-a-half years. THAI PETROCHEMICAL INDUSTRY: Close to restructuring deal -------------------------------------------------------- The Bangkok Post reports financially-troubled Thai Petrochemical Industry Plc (TPI) is inching toward a deal with creditors on restructuring its US$3.2-billion debt. An agreement would likely be signed with 140 creditors next March, Wachiraphuntu Promprasert, TPI's chief financial officer, said yesterday. The company is due to hold a final meeting with all creditors on November 24. Mr Wachiraphuntu said TPI was confident its creditors would approve the five-year debt restructuring plan, which was at an advanced stage, as their representatives had taken part in the process. Under the plan, interest rates paid by TPI would be brought below 10% a year for three years before rising slightly above 10% in the final two years. This would sharply reduce interest payments from 10 billion baht a year currently. About 25% of total annual interest payments would be converted into shares held by creditors, he said. Mr Wachiraphuntu said TPI's debt totalled $3.2 billion, not $3.8 billion as previously reported. Most was two-to-three year debt. If all creditors agreed, the debt would be rolled over to five years and expire in 2003. TOSHIBA (THAILAND): Sheds workers after sales cut by half --------------------------------------------------------- The Nation reports Toshiba (Thailand) Co has reduced its 300-strong workforce by 10 to 15 per cent through a cost- cutting programme to maintain its profitability, said company chairwoman Niramol Suriyasat. The staff reduction was mainly concentrated in delivery and after-sales services as domestic sales shrank 50 per cent. Niramol said total sales for 1998 are expected to shrink 50 per cent from last year's figures, but declined to provide the specific figures. 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $875 per month delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *