/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/981027.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 Tuesday, October 27, 1998, Vol. 1, No. 173 Headlines C H I N A & H O N G K O N G ALLIED LUCK DEVELOPMENT LIMITED: In voluntary liquidation BUILDMORE INTERNATIONAL: Results announcement CATHAY INTERNATIONAL: S&P places ratings on CreditWatch CHINESE LAW INTERNATIONAL: Winding-up petition GUANGDONG ENTERPRISES: Moody's downgrades debt GUANGDONG INTERNATIONAL: Report details Gitic's failure GUANGDONG INTERNATIONAL: Liquidation of GITIC laid out JBH ENTERPRISES LIMITED: Winding-up order KWONG HING INTERNATIONAL: Seeks resumption of trading L.K. HOLDINGS LIMITED: Winding-up order NORTHERN INTERNATIONAL: Results go south on bad debts PALIBURG HOLDINGS: To sell stake in Regal Hotels PETE ENTERPRISES COMPANY LIMITED: Winding-up petition SHENZHEN INTERNATIONAL: Funding troubles descend on Szitic SOUNDWILL HOLDINGS: Sell-off to help cut debt of $2.1b I N D O N E S I A PT ASTRA INTERNATIONAL: Will stop paying interest on loans J A P A N BANK OF TOKYO-MITSUBISHI: Moody's may cut ratings COSMO SECURITIES: Results announcement DAIMARU INC: Moody's cuts long-term debt rating DAIWA BANK: To close overseas branches FUJITSU LTD: Results announcement INDUSTRIAL BANK OF JAPAN: Moody's may cut ratings ISUZU MOTORS: Isuzu Motors' debt rating cut KYOEI LIFE: S&P assigns BB- rating KYOKUICHI CORP: Results announcement LONG TERM CREDIT: Fitch IBCA upgrade reflects optimism LONG TERM CREDIT: New cash for LTCB in state's takeover MARUDAI FOOD: Results announcement MATSUZAKAYA CO: Moody's cuts long-term debt rating NEC CORP: Chairman resigns as company reports huge loss NICHIEI CO: Results announcement NIPPON PAPER: Results announcement NISSAN MOTOR: Results announcement NOMURA SECURITIES: Moody's downgrades debt rating ROHM CO: Results announcement SANWA BANK: Moody's may cut ratings SUMITOMO BANK: Moody's may cut ratings TOKYO SECURITIES: Results announcement WAKO SECURITIES: Results announcement YAMATANE SECURITIES: Results announcement K O R E A ANAM CONSTRUCTION: Applies for court receivership ANAM GROUP: Affiliates apply for workout program CHO HUNG BANK: Cho Hung Bank faces October 31 deadline JINDO GROUP: Decision on Jindo expected by November 13 KIA MOTORS: Hyundai seeks $18b safety net over Kia SAMWON INDUSTRY: Completes creditor reconciliation TAEDONG BANK: Court announces liquidation M A L A Y S I A CARNIVAL EXPRESS SDN BHD: Winding-up petition CARPETS INTERNATIONAL MALAYSIA BHD: Results - 30/6/98 GETHIN SDN BHD: Voluntary winding-up GLOBAL CARRIERS: Global wins court protection JOFRICO SDN BHD: Winding-up petition MUTIARA ANTARA (M) SDN BHD: Winding-up petition MYCOM BHD: Results - 30/6/98 NAUTISERVO AGENCY (M) SDN BHD: Winding-up petition OLYMPIA INDUSTRIES BHD: Results - 30/6/98 PHILEO ALLIED BHD: Results - 30/6/98 RAHMAN HYDRAULIC TIN BHD: Results - 30/6/98 RENONG: Cloud over Renong rescue RIO DEL ORO PROPERTIES SDN BHD: Voluntary winding-up RUMPUN HIJAU CAPITAL BHD: Results -30/6/98 SHARES SYNDICATE SDN BHD: Voluntary winding-up TEO GUAN LEE CORPORATION BHD: Results - 30/6/98 TROPICAL REALTY SDN BHD: Winding-up petition WELL PRODUCTION SERVICES (M) SDN BHD: Voluntary winding-up WOO HING BROTHERS (M) BHD: Results - 30/6/98 S I N G A P O R E ASIATIC ENTERPRISES: Top firm in provisional liquidation DBS: Moody's warns of possible ratings cut KEPPEL BANK: Moody's warns of possible ratings cut OVERSEAS CHINESE BANKING: Moody's warns of possible cut OVERSEAS UNION BANK: Moody's warns of possible cut TAT LEE BANK: Moody's warns of possible ratings cut UNITED OVERSEAS BANK: Moody's warns of possible cut T H A I L A N D AYUDHYA INVESTMENT AND TRUST PCL: Results announcement BANGKOK BANK PUBLIC COMPANY LIMITED: Results announcement BANGKOK FIRST INVESTMENT & TRUST PCL: Results announcement NATIONAL FINANCE & SECURITIES: Results announcement SIAM CITY BANK PCL: Results announcement SIAM SANWA INDUSTRIAL CREDIT PCL: Results announcement ================================= C H I N A & H O N G K O N G ================================= ALLIED LUCK DEVELOPMENT LIMITED: In voluntary liquidation --------------------------------------------------------- Notice is hereby given that the creditors of Allied Luck Development Limited (in creditors' voluntary liquidation) are required on or before 13th November, 1998 to send in their names and address, full particulars of their debts and claims, and the name and addresses of their solicitors, to the liquidators of the said company at 9th Floor, Tung Ning Building, 249-253 Des Voeux Road Central, Hong Kong. BUILDMORE INTERNATIONAL: Results announcement --------------------------------------------- Buildmore International, a Macau property developer, said it has posted a net loss of $509,053 for the first six months to July. The pre-tax loss was $509,988 and loss per share was 0.71 cents. The directors did not declare any interim dividend. CATHAY INTERNATIONAL: S&P places ratings on CreditWatch ------------------------------------------------------- Standard & Poor Ratings Group said Friday it placed its double-B-minus rating for Cathay International Ltd on CreditWatch with negative implications, citing financial problems at China's Guangzhou International Trust & Investment Corp., or Gzitic. The rating agency said as a result of recent apparent financial difficulties at Gzitic, S&P believes holders of Cathay's rated US$350 million bonds are vulnerable to the possibility of a technical default on the Guangzhou Bridges and Tunnel Project's syndicated bank loan, which was extended to a Cathay International subsidiary. The double- B-minus rating on Cathay's US$350 million senior notes due 2008 are also placed on CreditWatch with negative implications. Gzitic, a fund-raising arm of the municipal government of Guangzhou, has provided a guarantee on the Bridges and Tunnel Project. It is also a defined project party under the US$115 million syndicated bank loan made to Cathay's operating subsidiary in 1996. Cathay International is a Hong Kong based company with joint-venture interests in China infrastructure projects. CHINESE LAW INTERNATIONAL: Winding-up petition ---------------------------------------------- Notice is hereby given that a petition for the winding-up of Chinese Law International Consultancy Center Limited by the High Court of Hong Kong was, on the 5th day of October, 1998, presented to the said Court by Mak Shiu Tong and the petition is heard on 4th of November, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. GUANGDONG ENTERPRISES: Moody's downgrades debt ---------------------------------------------- The Asian Wall Street Journal reports Moody's Investors Service Inc. has lowered the long-term foreign debt rating on Guangdong Enterprises (Holdings) Ltd. from Ba2 to B2. This ratings move reflects the concern about the pressure on this company to face its near term maturing obligations. About $900 million of debt securities are affected by this rating. Moody's is reportedly watching closely arrangements made by Guangdong Enterprises and its owner, the Guangdong provincial government to meet its obligations. This move also follows a move by Standard and Poor's Rating Service last week to reduce the long-term debt rating and the senior unsecured debt rating on Guangdong Enterprises (Holdings) Ltd. from BB to CCC+. Guangdong Enterprises is engaged in trading, manufacturing, property development and investment, hotels, finances, and infrastructure. GUANGDONG INTERNATIONAL: Report details Gitic's failure ------------------------------------------------------- An SCMP article says a Hong Kong-China News Agency report confirmed that Gitic has US$1 billion worth of corporate bonds that would mature between 2000 and 2016. Beijing has set a March 31 deadline to complete a comprehensive restructuring of its debt-ridden international trust and investment corporations (Itics). The report said Gitic lacked internal supervision and made wrong investments that caused its debts to balloon. However, it did not say how Beijing would deal with those debts and other unregistered debts of Gitic. On Saturday, Guangdong authorities broke their silence for the first time in recent weeks by pledging to inject capital into the Guangdong Enterprises group. The fact that this came a day after Premier Zhu Rongji arrived in Guangdong indicates that Guangdong has probably received Mr Zhu's blessing in capital infusion. Another article gives an account of the background and collapse of the company. By August, the cumulative burden of non-performing investment and short-term debt had created severe difficulties at Guangdong International Trust & Investment Corp. Heated conversations between Gitic officials and Eastman Kodak, which had purchased Gitic-invested Shantou Era Photographic Materials in March, tried to hasten a second closing payment of US$146 million for the film- maker. The money was understood to be used to pay off outstanding offshore lending. In early September, Gitic made the unusual public statement that it had repaid $177 million in loans and announced a management reshuffle at the same time. Bond markets however remained unconvinced with secondary market prices for Gitic international bond issues shot up to 1,500 basis points above US treasury notes. Outstanding borrowing at Gitic and related subsidiaries amounted to an estimated $1.95 billion, exclusive of bilateral borrowing or open derivative trading positions, each of which has been characterised as "substantial". Bankers said the lack of transparency and ordinary due diligence were overlooked with the understanding Gitic was operating with the complete and unqualified support of the provincial government. Guangdong's liquidity problems emerged in July when window firm Guangdong Overseas Chinese Trust and Investment Corp (Goctic) defaulted on a payment of $70 million syndicated loan. To quell fears about the debt-servicing ability of its fund-raising arms, Guangdong emissary Wu Jiesi travelled to Hong Kong to inform Goctic backers the province was setting aside 12 billion yuan to allow them to meet near-term obligations. GUANGDONG INTERNATIONAL: Liquidation of GITIC laid out ------------------------------------------------------ The Asia Wall Street Journal reported that a senior official with the Chinese State Administration of Foreign Exchange (SAFE) has laid down a preliminary framework for handling creditors claims against Guangong International Trust & Investment Corporation (GITIC), the official investment arm of the Guangdong provincial government. According to the plan, all settlement costs incurred in the liquidation process will be paid first with the proceeds of GITIC's assets sales. However, it is not clear if taxes will be charged on funds raised from these sales, something that will dramatically affect the amount of raised capital. Following liquidation costs, the salaries, taxes, and insurance of GITIC will be covered, followed by the foreign creditors who have "officially registered their debts." Such officially registered obligations will be "compensated in entirety," according to cited official. Whether foreign creditors that are not registered will be repaid seems to be an open question. The article mentions foreign bankers claim that due to Chinese regulatory framework, they had no ability to submit debt registrations directly to SAFE. It was rather the obligation of the institution borrowing their funds (namely Gitic) to register their debts with SAFE. SAFE officials said that further negotiations are needed with foreign creditors that fit this category, but that SAFE has no obligation to repay these obligations. However, an official at SAFE was quoted as saying that it is not their intention to overlook these debts, but rather that they may not repay 100 percent of the claimed amounts. So far, although more than 30 foreign countries have made inquiries about filing claims against GITIC, only four completed foreign debt claims have been received by the liquidation team at the Bank of China. JBH ENTERPRISES LIMITED: Winding-up order ----------------------------------------- A winding-up order notice is hereby given that JBH Enterprises Limited is undergoing a companies winding-up proceedings (No 634 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on October 14, 1998. The date of presentation of petition was September 7, 1998. KWONG HING INTERNATIONAL: Seeks resumption of trading ----------------------------------------------------- According to the SCMP, Kwong Hing International Holdings (Bermuda) says it has requested resumption of trading of its shares on the stock exchange today. The shares have been suspended since April 16. The company said it had been informed by leading shareholder Raytenm, a company controlled by Li Man-ching, Li Mei-lin, Li Man-shun and Li Man-tak, that it had not used its 58.9 per cent holding in the company as collateral. L.K. HOLDINGS LIMITED: Winding-up order --------------------------------------- A winding-up order notice is hereby given that L.K. Holdings Limited is undergoing a companies winding-up proceedings (No 641 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on October 14, 1998. The date of presentation of petition was September 8, 1998. NORTHERN INTERNATIONAL: Results go south on bad debts ----------------------------------------------------- According to the Hong Kong Standard, Northern International Holdings posted a $132.42 million loss for the year to March, as a result of bad debts and slow moving goods. During the year, the group recorded a $40.08 million operating loss on a $108.6 million turnover. Exceptional loss of $90.46 million arose from slow-moving stocks and provision for bad and doubtful debts. A $4.98 million provision was also made as the result of a court order to wind up subsidiary Sharp Brave Company. Northern International chairman Chong Sing-yuen said the group had secured the support from the majority of creditors to present a Scheme of Arrangements to the Official Receiver with an application to stay the winding up. With net current liabilities of some $105.11 million as at March 31, the rights issue on June 2 and the court order to wind up the group's principal subsidiary, the directors are negotiating with banks to secure additional credit facilities. Mr Chong suggested that after the sizeable provision, the group would continue to streamline its manufacturing operations and implement various cost control measures to strengthen its profit margin. PALIBURG HOLDINGS: To sell stake in Regal Hotels ------------------------------------------------ Paliburg Holdings is in talks with at least two independent third parties to sell all or part of its 74.8% stake in Regal Hotels International. The group said it has been exploring possible strategic asset disposals. The asset disposals involve the sale of the whole or a substantial part of its 74.8 % in Regal Hotels and is intended to reduce debt. The group said the recession in Hong Kong and South East Asia has caused financial institutions to reduce credit lines to borrowers. The huge drop in property prices and visitor revenue has increased this pressure on companies like Century and Paliburg to reduce their debt. The group said there is a possibility that Regal may dispose of some or all of its hotels and other interests in North America and discussions with potential purchasers and investors have started. The Boston Herald reports Regal Hotels International is reportedly close to a deal to sell its U.S assets, which include the Bostonian hotel. Accor SA of France may buy Hong Kong-based Regal's U.S. hotels for about $500 million. Officials of the hotel and the companies that own and operate it could not be reached or declined comment yesterday. Industry sources said they've heard talk of a potential sale of the Bostonian for about two months. PETE ENTERPRISES COMPANY LIMITED: Winding-up petition ----------------------------------------------------- Notice is hereby given that a petition for the winding-up of Pete Enterprises Company Limited by the High Court of Hong Kong was, on the 16th day of October, 1998, presented to the said Court by The Daiwa Bank Limited and the petition is heard on 18th of November, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. SHENZHEN INTERNATIONAL: Funding troubles descend on Szitic ----------------------------------------------------------- According to the SCMP, Shenzhen International Trust and Investment Corp. (Szitic) has been facing difficulty raising funds after the closure of Guangdong International Trust and Investment Corp (Gitic). The Securities Times at the weekend quoted Szitic general manager Li Nanfeng as saying that the company is facing its greatest challenge since it was established. However, Mr Li also said that Szitic was one of the mainland's most stable and risk-averse trust firms. The Securities Times quoted a recent report by the Shenzhen municipal government, which owns Szitic, as saying the company had cut bad assets to 2.5 per cent of total assets by the end of last year, down from 31 per cent in 1987. According to the report, Szitic has total assets of 5.67 billion yuan and capital of 1.3 billion yuan, with an 18 per cent return on capital last year. The report also said Szitic made profits of 105 million yuan in the first five months of this year, completing 56 per cent of the year's earnings target. Mr Li said that following the Asian financial crisis, the company has expanded cooperation with Europe and North America while reducing funds raised from Japanese banks, and has cut back it credit, leasing and investment operations to maintain liquidity. Moody's gave Szitic a long-term foreign currency deposit rating of Ba3 and a long-term foreign debt rating of Ba2. The agency placed Szitic on review for a possible downgrade earlier this year as a result of Gitic's closure which is seen to signify a marked change in China's regulatory authorities' stance towards fundamentally weak institutions. SOUNDWILL HOLDINGS: Sell-off to help cut debt of $2.1b ------------------------------------------------------ According to the SCMP, Soundwill Holdings, which proposed to its bank creditors on Thursday a $2.1 billion debt restructuring, is in negotiations with several parties to sell two commercial properties in Causeway Bay and more than 10,000 square feet of retail space in Tsuen Wan, which might reduce $1 billion or more than half of the company's debt. Director Keith Yip Kwai-cheung said the company was expecting a reply from bankers next week. Soundwill had previously announced it had insufficient funds to service interest and principal repayments. As at June 30, the group had net bank borrowings of about $2.14 billion, shareholders' loans of about $41 million and $200 million in convertible bonds held by chairman and controlling shareholder, Grace Chu. Soundwill's meeting with its bankers on a debt restructuring has received strong support from key shareholders - Cosco International Holdings and parent Cosco (Hong Kong) Group. Cosco International acquired 10.01 per cent of the company at $3.60 a share from Soundwill's chairman last October. The value of that investment has plunged more than 94 per cent based on Soundwill's close yesterday. ================= I N D O N E S I A ================= PT ASTRA INTERNATIONAL: Will stop paying interest on loans ---------------------------------------------------------- The Asian Wall Street Journal reported in a front page article that PT Astra International, Indonesia's largest assembler of automobiles has announced that business has fallen so much that it will immediately stop paying interest on about $1.4 billion in loans. The announcement, made at a meeting of bankers called by Astra, stated that this is in accordance with the current terms of its facilities. Astra also reported that it was working on a restructuring plan that would be presented to the company's creditors on November 6. Astra also announced that it has appointed three financial advisors for its restructuring. This plan will reportedly ask that the repayment of some loans be stretched out over five years. An Astra spokesperson said that the group will halt repayment on about 70 percent of its foreign loans, which total to about $2 billion. However, those units which can continue to service their loans will continue to do so. The list of the Astra units reported that can no longer service their debts are PT Astra International (the parent company of the Astra Group), PT Astra Graphia (a photocopier business), PT United Tractors (heavy equipment), PT Lintas Adhikrida, PT Non-Ferindo Utama Aluminum Alloy, PT Fuji Technica Indonesia, PT Berau Coal, PT Pandu Dayatama Patria, and PT United Tractors Pandu Engineering. ========= J A P A N ========= BANK OF TOKYO-MITSUBISHI: Moody's may cut ratings ------------------------------------------------- Moody's Investors Service warned yesterday it may cut its ratings for four top Japanese banks including the giant Bank of Tokyo-Mitsubishi because they were pressured by the recession in Japan and deterioration in distressed East Asian economies. Moody's placed under review for possible downgrade the ratings for Industrial Bank of Japan, now at A3, Sanwa Bank now at A1, Sumitomo Bank , now at A2, and Tokyo-Mitsubishi, now at A1. COSMO SECURITIES: Results announcement -------------------------------------- Bloomberg reports shares of Cosmo Securities Co. fell as much as 1 yen to 56. The medium-sized comprehensive securities firm reported that its parent net loss widened to 3.7 billion yen from 2.5 billion yen for the half-year ended Sept. 30. That's worse than Toyo Keizai's forecast of a 400 million yen loss. DAIMARU INC: Moody's cuts long-term debt rating ----------------------------------------------- The Asian Wall Street Journal reported that Moody's Investor Service Inc. has lowered the long-term debt rating of Daimaru Inc., a Japanese department store. Daimaru's long-term senior unsecured debt rating was reduced from Ba2 to Ba3, and its Japanese shelf registration was lowered from provisional Ba2 to provisional Ba3. This downgrade affects 30 billion yen of long-term debt and 30 bilion yen of bonds under Japanese shelf registration. This ratings move reflects pressures on Japanese department stores overall profitability and financial flexiblity. Stagnant consumer spending, high leverage, and high operating costs generally plague these stores. DAIWA BANK: To close overseas branches -------------------------------------- Kyodo News reports Daiwa Bank plans to end lending operations at its overseas branches by March 2001 to bypass a rule that requires a bank operating internationally to have capital equal to at least 8% of its outstanding loans, sources close to Daiwa said Saturday. Daiwa, one of Japan's nine major "city" commercial banks, with nationwide branch networks, has a total of 35 overseas branches and other business bases. Of the total, Daiwa will close or downgrade the London branch and five Asian branches to the status of representative offices, the sources said. The London branch is Daiwa's sole European business base. Asian branches include offices in Seoul and Shanghai. Daiwa is also considering selling some of its overseas subsidiaries, they said. If Daiwa implements its plan to end its overseas banking operations, it would become the second major Japanese bank to do so. Hokkaido Takushoku Bank, which also halted overseas lending operations, collapsed Nov. 17. It will merge with North Pacific Bank later this year. Daiwa wants to avert the massive stock-selling which eventually forced the Long-Term Credit Bank of Japan (LTCB) to ask the government to nationalize it. The attack itself spotlighted LTCB's bad-loan woes, they said. FUJITSU LTD: Results announcement --------------------------------- Bloomberg reports shares of Fujitsu Ltd. fell as much as 21 yen to 1,257. The computer maker said first-half group earnings tumbled 45.5 percent to 8.367 billion yen as prices of computer memory chips tumbled, personal computer shipments slowed and telecommunications companies spent less on new equipment. INDUSTRIAL BANK OF JAPAN: Moody's may cut ratings -------------------------------------------- Moody's Investors Service warned yesterday it may cut its ratings for four top Japanese banks including the giant Bank of Tokyo-Mitsubishi because they were pressured by the recession in Japan and deterioration in distressed East Asian economies. Moody's placed under review for possible downgrade the ratings for Industrial Bank of Japan, now at A3, Sanwa Bank now at A1, Sumitomo Bank , now at A2, and Tokyo-Mitsubishi, now at A1. ISUZU MOTORS: Isuzu Motors' debt rating cut ------------------------------------------- The Asian Wall Street Journal reported that Japan Rating and Investment Information Inc. (R&I) has downgraded the long-term debt rating fo Isuzu Motors Ltd. from A- to BBB-. R&I also reduced Isuzu's comercial paper rating from A-1 to A-2. These downgrades affect about 80 billion yen of secured convertible bonds, 40 billion yen of unsecured straight bonds, and up to 50 billion yen of commercial paper. This downgrade reportedly takes into account the poor Japanese domestic demand for Isuzu's main product, trucks. Uncertainty over future earnings is also increased due to the fact that Isuzu relies heavily on exports. KYOEI LIFE: S&P assigns BB- rating ---------------------------------- Standard & Poor's Ratings Group assigned a double-B-minus financial-strength rating to Kyoei Life Insurance Co. It also gave the same rating to the firm's counterparty credit, 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 operation in its niche markets. KYOKUICHI CORP: Results announcement ------------------------------------ Bloomberg reports shares of Kyokuichi Corp. rose as much as 6 yen to 92. The pig iron producer reversed its parent net forecast to a loss of 3.5 billion yen from a 95 million yen profit for the half-year ended in September. That's worse than Toyo Keizai's forecast of a 90 million yen profit. LONG TERM CREDIT: Fitch IBCA upgrade reflects optimism ------------------------------------------------------ According to the SCMP, Long Term Credit Bank's short-term credit rating was raised to F1 from F2 by banking credit agency Fitch IBCA immediately following the Japanese Government's bailout of it. Tokyo announced on Friday that financial authorities had temporarily nationalised the bank after pouring in three trillion yen in loans. Fitch said LTCB's long-term rating of BBB-plus, which reflects the possibility of a ratings alert, remained in place until the government's intentions were further clarified. LTCB's individual rating of E and its support rating of two remained unchanged. Moody's also announced that it had put LTCB on review for possible upgrade, pending the release of further details of the government's plans for nationalisation and the satisfaction of creditors' claims. The agency said it will also seek further clarification of the status of the bank's subordinated debt-holders. LONG TERM CREDIT: New cash for LTCB in state's takeover ------------------------------------------------------- According to the SCMP and the Hong Kong Standard, the Japanese government injected three trillion yen in loans into LTCB yesterday before nationalising it. The huge new loan was provided by the Bank of Japan through the Deposit Insurance Corp, a body set up to protect depositors. A central bank official said the loan was to ensure funds were available to sustain near-term operations. Prime Minister Keizo Obuchi agreed the state would take over the bank, and clean up its 4.62 trillion yen in bad and risky loans. According to the SCMP, Japan's Financial Supervisory Agency announced that LTCB's overall unrealised losses stood at 500 billion yen at the end of last month, much bigger than the bank's net worth of 160 billion yen. LTCB president Tsuneo Suzuki said the bank tried to explain to the authorities that the bank was not insolvent but the argument was not accepted. He said he believed the nationalisation was temporary and the bank did not officially collapse. LTCB shares were suspended from the start of yesterday's session and the exchange said it would delist LTCB shares today. Under state control, LTCB will be able to continue ordinary banking operations and to dispose of bad loans under new management chosen by authorities. After a maximum of three years under state control, the plan is for LTCB's healthy assets to be sold to a sound bank. MARUDAI FOOD: Results announcement ---------------------------------- Bloomberg reports shares of Marudai Food Co. fell as much as 11 yen to 230. Marudai, one of Japan's largest ham and sausage processing companies, reversed its parent net forecast to a loss of 2.5 billion yen from an 800 million yen profit. That's worse than Toyo Keizai's forecast of an 800 million yen profit. MATSUZAKAYA CO: Moody's cuts long-term debt rating -------------------------------------------------- The Asian Wall Street Journal reports Moody's Investor Services Inc. has lowered the long-term debt rating of Matsuzakaya Company, a Japanese department store. Matsuzakaya's long-term senior unsecured debt rating was reduced from Ba3 to B1, and its Japanese shelf registration was lowered from provisional Ba3 to provisional B1. This downgrade affects 21 billion yen of long-term debt and 20 billion yen of bonds under Japanese shelf registration. This ratings move reflects pressures on Japanese department stores overall profitablity and financial flexablity. Stagnant consumer spending, high leverage, and high operating costs generally plague these stores. NEC CORP: Chairman resigns as company reports huge loss ------------------------------------------------------- NEC Corp. reported a huge pretax loss for its fiscal first half, the same day that Chairman Tadahiro Seckimoto resigned amid a defense-procurement scandal. The scandal initially involved suspicions that a partly owned NEC unit, Tokyo Communication Equipment Co., overbilled the Japan Defense Agency for defense contracts and subsequently gave high-paying jobs to former agency officials in exchange for favors. The scandal has since spread to NEC and another affiliate Nico Electronics Co. NEC posted a group pretax loss of 24.52 billion yen in the six months ended September 30 compared with a 65.22 billion yen pretax profit a year earlier. Sales also fell, to 2,113 trillion yen from 2,372 trillion yen. NEC blamed a long slump in semiconductor sales as well as a shrinking PC market in Japan, as a result of the country's deep recession. For the full year ended next March, NEC expected a pretax loss of 35 billion yen, and said it would cut overall capital spending by 13% to 270 billion yen. NICHIEI CO: Results announcement -------------------------------- Bloomberg reports shares of Nichiei Co. fell as much as 7 yen to 106. The lumber dealer widened its parent net loss forecast to 3.2 billion yen from 625 million yen for the half-year ended in September. That's worse than Toyo Keizai's forecast of a 630 million yen loss. NIPPON PAPER: Results announcement ---------------------------------- Bloomberg reports shares of Nippon Paper Industries Co. fell as much as 23 yen to 442. Japan's second-largest paper maker said its net income fell 53.4 percent in the six months through September as demand for paper remained weak and the cost of imported pulp rose on the stronger dollar. The company, which makes newsprint, coated paper and other products, said its net earnings were 4 billion yen, or 4.23 yen a share, down from 8.6 billion yen, or 9.07 yen, for the corresponding period last year. Sales were 286 billion yen, down from 347 billion yen. The results were in line with projections by Toyo Keizai. NISSAN MOTOR: Results announcement ---------------------------------- Bloomberg reports shares of Nissan Motor Co. fell as much as 15 yen to 357. The automaker aims to make about 40 billion yen by selling nearly half the shares it owns in 70 suppliers, the Nihon Keizai newspaper reported, without citing sources. Nissan will sell shares in non-affiliated companies such as Kayaba Industry Co., Nippon Piston Ring Co., NOK Corp., Mitsuboshi Belting Ltd., Bridgestone Corp., Toyo Tire & Rubber Co., Central Glass Co. and Asahi Glass Co., the paper said. NOMURA SECURITIES: Moody's downgrades debt rating ------------------------------------------------- The Asian Wall Street Journal reported that Moody's Investors Service Inc. has cut Nomura Securities Company's senior long-term rating from A3 to Baa. Nomura is Japan's largest securities company that recently posted a pre-tax loss of 237 billion yen for the first half of the year ending on September 30. This loss included a $600 million loss from Russian bonds and another $600 million loss from it US mortgage backed securities operation. Moody's stated that it will consider additional downgrades in the event that Nomura announces more losses. ROHM CO: Results announcement ----------------------------- Bloomberg reports shares of Rohm Co. rose as much as 180 yen to 11,650. The semiconductor maker is cutting capital spending by 10 percent to 49 billion yen for the year ending March 31, to make up for sluggish growth in demand for its mainstay large-scale integrated circuits, the Nihon Keizai newspaper reported, citing company sources. The company forecasts a fall of 3 percent in its group net profit to 59 billion yen for the year. SANWA BANK: Moody's may cut ratings ----------------------------------- Moody's Investors Service warned yesterday it may cut its ratings for four top Japanese banks including the giant Bank of Tokyo-Mitsubishi because they were pressured by the recession in Japan and deterioration in distressed East Asian economies. Moody's placed under review for possible downgrade the ratings for Industrial Bank of Japan, now at A3, Sanwa Bank now at A1, Sumitomo Bank , now at A2, and Tokyo-Mitsubishi, now at A1. SUMITOMO BANK: Moody's may cut ratings -------------------------------------- Moody's Investors Service warned yesterday it may cut its ratings for four top Japanese banks including the giant Bank of Tokyo-Mitsubishi because they were pressured by the recession in Japan and deterioration in distressed East Asian economies. Moody's placed under review for possible downgrade the ratings for Industrial Bank of Japan, now at A3, Sanwa Bank now at A1, Sumitomo Bank , now at A2, and Tokyo-Mitsubishi, now at A1. TOKYO SECURITIES: Results announcement -------------------------------------- Bloomberg reports shares of Tokyo Securities Co. fell as much as 2 yen to 118. The medium-sized comprehensive securities firm reported that its parent net loss widened to 3.4 billion yen from 2.5 billion yen for the half-year ended Sept. 30. That's worse than Toyo Keizai's forecast of a 600 million yen loss. WAKO SECURITIES: Results announcement ------------------------------------- Bloomberg reports shares of Wako Securities Co. rose as much as 5 yen to 157. The securities firm reported that its parent net loss widened to 7.0 billion yen from 6.3 billion yen for the half-year ended Sept. 30. That's worse than Toyo Keizai's forecast of a 2.9 billion yen loss. YAMATANE SECURITIES: Results announcement ----------------------------------------- Bloomberg reports shares of Yamatane Securities Co. fell as much as 3 yen to 90. The medium-scale securities firm reported a parent net loss of 1.8 billion yen for the half- year ended Sept. 30. That's worse than Toyo Keizai's forecast of a 670 million yen loss. ========= K O R E A ========= ANAM CONSTRUCTION: Applies for court receivership ------------------------------------------------- The Korean language Maeil Kyungje reports Anam Construction Company applied for court receivership on October 24, 1998. ANAM GROUP: Affiliates apply for workout program ------------------------------------------------ The Korean language Maeil Kyungje reports the three affiliates of the Anam Group, the 21st largest Korean corporation, applied for the workout program on October 24th, 1998. The three companies are Anam Semiconductor, Anam Electronics, and Anam Environment Co. Cho-Hung Bank, the group's major creditor, has notified the group's creditors of this decision. Per the terms of a workout program in Korea, these companies will not be declared insolvent even if they could not pay their notes coming due. CHO HUNG BANK: Cho Hung Bank faces October 31 deadline ------------------------------------------------------ The Korea Herald reported that the Cho Hung Bank is racing to meet an extended October 31 deadline with the Financial Supervisory Commission (FSC) to finish its self-rescue plans. The same article speculated that this bank could be at risk for government closure, although this is considered highly unlikely due to the troubles caused last summer when the government closed down five banks. More probable is a forced merger, capital cuts, or other management improvement orders. The article also reported a rumor that a desperate Cho Hung bank recently sought a merger with a major competitor which rejected the offer. Additionally, Cho Hung's much publicized plans to draw in foreign capital have so far yielded no results. A foreign analyst that was quoted in the Korea Times in August stated that the bank has no chance of surviving independently, and that even if it succeeds in attracting foreign capital, a one time capital injection cannot normalize Cho Hung. The FSC, Korea's financial watchdog institution, established an evaluating committee in June to diagnose 12 commercial banks (including Cho Hung), which failed to meet the minimum 8 percent capital adequacy requirements set by the Bank for International Settlements (BIS). It issues closure order for five banks in late June, and has asked 7 other banks (including Cho Hung) to provide drastic self rehabilitation plans. These plans were to include payroll cuts, management layoffs, capital increases or decreases, and mergers with stronger banks. The FSC reportedly plans to keep alive only those banks that are able to meet the 8 percent BIS capital adequacy ratio by June, 2000 via these new rehabilitation plans. According to statistics published earlier, Cho Hung's BIS ratio was listed at 1.49 percent and its ratio of non performing loans was at 10.5 percent. Non-performing loans combines bad loans, plus substandard loans (or collateral- backed loans whose interest payments are overdue for more that six months). Bad loans includes both doubtful loans and estimated losses. JINDO GROUP: Decision on Jindo expected by November 13 ------------------------------------------------------ The Asian Wall Street Journal has a front page article on the troubled Jindo Group, one of the world's largest fur makers. The article says Jindo's recovery is far from assured, and that the group has laid off about 370 of its 1,350 employees, and must cut more. Since July, Jindo has been under a "workout plan" with its creditor banks. This plan, which froze their debt obligations, has been extended for an additional month that ends on November 13. KIA MOTORS: Hyundai seeks $18b safety net over Kia -------------------------------------------------- According to the SCMP and the Hong Kong Standard, Hyundai has asked for 3.1 trillion won in preferential loans as a condition for taking over bankrupt Kia Motors and Asia Motors. A Hyundai spokesman said this is an issue for further negotiations, not obligation. The loans, if extended, could trigger trade conflicts with the US as the Korean Government has agreed to end subsidies to domestic vehicle makers or direct banks to lend to them. Hyundai asked Kia creditors to write off all debt still to be uncovered and deferred loans to car buyers, and to exempt Hyundai from legal responsibility for an Asia Motors project in Brazil. Korea Development Bank director Lee Yeon-sung said "these demands seem unacceptable for now." According to the Hong Kong Standard, Hyundai has agreed to pay 1.2 trillion won by March to buy 51 per cent of Kia and Asia Motors. The loan request and other demands could hinder Hyundai's acquisition of Kia, as the transaction has to be approved by Kia creditors. According to a story in the Korea Herald, the minor creditors of Kia (such as merchant banks which lent to Kia without collateral) are opposed to the terms offered by Hyundai. Their concern that such huge write-offs may force them to go bankrupt. To respond to these concerns, the government is working to revise accounting regulations for creditor banks in order for them to spread their losses from debt write-offs over three to five years. Current corporate accounting rules require companies to record all losses in the year they occur. The Korea Herald stated that if the losses are spread over the coming years, banks and merchant banks are expected by the government to post moderate profits this year. SAMWON INDUSTRY: Completes creditor reconciliation -------------------------------------------------- The Seoul District Court advertised in the Korean language Maeil Kyungje that the Samwon Industry Company has completed its creditor reconciliation procedure. The company's address is 234 Pongam-ri Paju-eup Paju-shi and the president is Mr. Yi Sung-hun. TAEDONG BANK: Court announces liquidation ----------------------------------------- According to the Korean Language Maeil Kyungje, the Taegu District Court has announced Taedong Bank's liquidation on October 23, 1998. The Court noted that the Taedong bank's debt of 1.5108 trillion won is not likely to be paid by the Bank's estimated assets of 1.12 trillion won. =============== M A L A Y S I A =============== CARNIVAL EXPRESS SDN BHD: Winding-up petition --------------------------------------------- Multi-Purpose Bank Bhd on 3/9/98 petitioned for the winding-up of Carnival Express Sdn Bhd. The petition is directed to be heard on 13/11/98. CARPETS INTERNATIONAL MALAYSIA BHD: Results - 30/6/98 ----------------------------------------------------- Carpets International Malaysia Bhd (listed on the KLSE) reported a post-tax loss of RM3.151mil for the 6months ended 30/6/98, compared to a post-tax loss of RM0.792mil previously. Loss per share rose 298% from 3.98sen to 15.83sen during the same period. GETHIN SDN BHD: Voluntary winding-up ------------------------------------ The members of Gethin Sdn Bhd on 14/10/98 resolved to wind- up the company voluntarily. Creditors of the company are requested to submit their claims before 25/11/98. GLOBAL CARRIERS: Global wins court protection --------------------------------------------- According to the SCMP, Global Carriers, Malaysia's largest rice carrier for the Malaysian government's rice agency Padiberas Nasional, has won court protection from creditors to give the unprofitable shipping company time to reschedule debt and implement a restructuring which involves a capital reduction and a rights issue. The company posted a loss of M$49.4 million in the first half of this year, and scrapped its planned rights issue in August to raise $400 million, which it said was largely due to the withdrawal of financing and underwriting commitments amid the stock slump. JOFRICO SDN BHD: Winding-up petition ------------------------------------ Uda Holdings Sdn Bhd on 21/9/98 petitioned for the winding- up of Jofrico Sdn Bhd. The petition is directed to be heard on 18/12/98. MUTIARA ANTARA (M) SDN BHD: Winding-up petition ----------------------------------------------- United Traders Securities Sdn Bhd on 10/6/98 petitioned for the winding-up of Mutiara Antara (M) Sdn Bhd. The petition is directed to be heard on 7/12/98. MYCOM BHD: Results - 30/6/98 ---------------------------- Mycom Bhd (listed on the KLSE) reported a post-tax loss of RM394.864mil for the year ended 30/6/98, compared to a post-tax profit of RM43.009mil previously. EPS fell 3,850% from 2sen to a loss per share of 75sen during the same period. NAUTISERVO AGENCY (M) SDN BHD: Winding-up petition -------------------------------------------------- City Finance Bhd on 14/9/98 petitioned for the winding-up of Nautiservo Agency (M) Sdn Bhd. The petition is directed to be heard on 8/12/98. OLYMPIA INDUSTRIES BHD: Results - 30/6/98 ----------------------------------------- Olympia Industries Bhd (listed on the KLSE) reported a post-tax loss of RM191.288mil for the year ended 30/6/98, compared to a post-tax profit of RM44.638mil previously. EPS fell 633% from 6sen to a loss per share of 32sen during the same period. PHILEO ALLIED BHD: Results - 30/6/98 ------------------------------------ Phileo Allied Bhd (listed on the KLSE) reported a post-tax loss of RM93.319mil for the 6months ended 30/6/98, compared to a post-tax profit of RM40.856mil previously. EPS fell 331% from 11.8sen to a loss per share of 27.3sen during the same period. RAHMAN HYDRAULIC TIN BHD: Results - 30/6/98 ------------------------------------------- Rahman Hydraulic Tin Bhd (listed on the KLSE) reported a post-tax loss of RM20.471mil for the 6months ended 30/6/98, compared to a post-tax loss of RM1.322mil previously. Loss per share rose 1,407% from 1.4sen to 21.1sen during the same period. RENONG: Cloud over Renong rescue -------------------------------- According to the SCMP, political quagmire puts a question over whether anyone in Malaysia's government approved Credit Suisse First Boston's plan to use tax-payers' money to rescue Renong. Malaysian Prime Minister Mahathir Mohamad said his predecessor Anwar Ibrahim in August approved a plan to replace up to M$10.5 billion in debt owed by Renong and other infrastructure firms with government bonds, but Anwar said there is absolutely no truth in this. The Credit Suisse plan for using public funds to rescue Renong is controversial because it leave Renong's management unscathed, but may be approved because Malaysia could not afford the collapse of its biggest industrial group, as analysts said. RIO DEL ORO PROPERTIES SDN BHD: Voluntary winding-up ---------------------------------------------------- The members of Rio Del Oro Properties Sdn Bhd on 16/10/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 26/11/98. RUMPUN HIJAU CAPITAL BHD: Results -30/6/98 ------------------------------------------ Rumpun Hijau Capital Bhd (listed on the KLSE) reported a post-tax loss of RM14.787mil for the 6months ended 30/6/98, compared to a post-tax profit of RM4.497mil previously. EPS fell 500% from 5sen to 20sen during the same period. SHARES SYNDICATE SDN BHD: Voluntary winding-up ---------------------------------------------- The members of Shares Syndicate Sdn Bhd on 17/10/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 22/11/98. TEO GUAN LEE CORPORATION BHD: Results - 30/6/98 ----------------------------------------------- Teo Guan Lee Corporation Bhd (listed on the KLSE) reported a post-tax loss of RM8.491mil for the year ended 30/6/98, compared to a post-tax loss of RM7.783mil previously. Loss per share rose 6.7% from RM0.40 to RM0.42 during the same period. TROPICAL REALTY SDN BHD: Winding-up petition -------------------------------------------- Oriental Star Enterprise Sdn Bhd on 8/9/98 petitioned for the winding-up of Tropical Realty Sdn Bhd. The petition is directed to be heard on 12/11/98. WELL PRODUCTION SERVICES (M) SDN BHD: Voluntary winding-up ---------------------------------------------------------- The members of Well Production Services (M) Sdn Bhd on 20/10/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 25/11/98. WOO HING BROTHERS (M) BHD: Results - 30/6/98 -------------------------------------------- Woo Hing Brothers (M) Bhd (listed on the KLSE) reported a post-tax loss of RM8.716mil for the 6months ended 30/6/98, compared to a post-tax loss of RM7.348mil previously. Loss per share rose 14.5% from RM0.47 to RM0.54 during the same period. ================= S I N G A P O R E ================= ASIATIC ENTERPRISES: Top firm in provisional liquidation -------------------------------------------------------- According to Singapore Business Times, Asiatic Enterprises, ranked among the 50 most enterprising privately-held local companies for three years running, has been put under provisional liquidation. Singapore-based Asiatic, owned by Indonesia's Widjaja family, is the first "Enterprise 50" company to succumb to the regional financial crisis. It is not known exactly how or why Asiatic ran into trouble. All that's known is that Asiatic had wanted to apply for judicial management but that was opposed by 17 creditor banks which are owed an estimated US$32.5 million (S$52.8 million). The action was led by Hongkong and Shanghai Bank, which has the largest single claim of US$5.4 million. United Overseas Bank was the biggest lender among the four local creditor banks, with some US$3.4 million owing to it. Tat Lee Bank is owed US$1.5 million, OCBC Bank US$1.2 million and DBS Bank US$1.1 million. The list of foreign creditor banks includes ANZ Bank, Commerzbank and Bank Brussels Lambert. These claims are preliminary indications based on the company's records. A High Court hearing on Oct 30 will decide if the company is to be wound up and the liquidation process set in motion, or if it be allowed to continue operating. In the latter case, the management can seek judicial management. The High Court appointed Michael Ng, Tham Sai Choy and Peter Chay of KPMG Peat Marwick as provisional liquidators earlier this month. DBS: Moody's warns of possible ratings cut ------------------------------------------ Six Singapore banks, including DBS, are under review for a possible cut in ratings because of their exposure to neighbouring Malaysia, Moody's Investors Services said. KEPPEL BANK: Moody's warns of possible ratings cut -------------------------------------------------- Six Singapore banks, including Keppel Bank, are under review for a possible cut in ratings because of their exposure to neighbouring Malaysia, Moody's Investors Services said. OVERSEAS CHINESE BANKING: Moody's warns of possible cut ------------------------------------------------------ Six Singapore banks, including Overseas Chinese Banking, are under review for a possible cut in ratings because of their exposure to neighbouring Malaysia, Moody's Investors Services said. OVERSEAS UNION BANK: Moody's warns of possible cut -------------------------------------------------- Six Singapore banks, including Overseas Union Bank, are under review for a possible cut in ratings because of their exposure to neighbouring Malaysia, Moody's Investors Services said. TAT LEE BANK: Moody's warns of possible ratings cut --------------------------------------------------- Six Singapore banks, including Tat Lee Bank, are under review for a possible cut in ratings because of their exposure to neighbouring Malaysia, Moody's Investors Services said. UNITED OVERSEAS BANK: Moody's warns of possible cut --------------------------------------------------- Six Singapore banks, including United Overseas Bank, are under review for a possible cut in ratings because of their exposure to neighbouring Malaysia, Moody's Investors Services said. =============== T H A I L A N D =============== AYUDHYA INVESTMENT AND TRUST PCL: Results announcement ------------------------------------------------------ Ayudhya Investment and Trust PCL reports unreviewed quarterly financial statements as a net loss of Bt20.9 million for the period ending September 30, 1998. This compares to a net profit of Bt21.2 million for the corresponding 1997 period. BANGKOK BANK PUBLIC COMPANY LIMITED: Results announcement --------------------------------------------------------- Bangkok Bank PCL reports unreviewed quarterly financial statements as a net loss of Bt9.9 billion for the period ending September 30, 1998. This compares to a net profit of Bt2.9 billion for the corresponding 1997 period. BANGKOK FIRST INVESTMENT & TRUST PCL: Results announcement ---------------------------------------------------------- Bangkok First Investment & Trust PCL reports unreviewed quarterly financial statements as a net loss of Bt297 million for the period ending September 30, 1998. This compares to a loss of Bt57 million for the corresponding 1997 period. NATIONAL FINANCE & SECURITIES: Results announcement ----------------------------------------------------- National Finance & Securities PCL reports unreviewed quarterly financial statements as a net loss of Bt1.3 billion for the period ending September 30, 1998. This compare to a net profit of Bt36 million for the corresponding 1997 period. SIAM CITY BANK PCL: Results announcement ---------------------------------------- Siam City Bank reports unreviewed quarterly financial statements as a net loss of Bt1.27 billion for the period ending September 30, 1998. This compares to a net profit of Bt2.02 billion for the corresponding 1997 period. SIAM SANWA INDUSTRIAL CREDIT PCL: Results announcement ------------------------------------------------------ Siam Sanwa Industrial Credit PCL reports unreviewed quarterly financial statements as a net loss of Bt240 million for the period ending September 30, 1998. This compares to a net loss of Bt19 million for the corresponding 1997 period. 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 * * *