/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/981030.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 Friday, October 30, 1998, Vol. 1, No. 176 Headlines * C H I N A & H O N G K O N G * FATUM FUND MANAGEMENT LIMITED: Notice to creditors FUJIAN INTERNATIONAL: Moody's downgrades ITICs GUANGDONG ENTERPRISES: GDE in line for reshuffle of board GUANGDONG INTERNATIONAL: Warnings on foreign loans HARVEST WIDE INVESTMENT LIMITED: Winding-up order JOIN YEE KNITTING LIMITED: Winding-up petition LION ASIA LIMITED: Results announcement MR RHINO SOUTH AFRICAN RESTAURANT: Notice of first meetings OLYMPIC HOTEL: Owner defies banks' seizure PICC PROPERTY: Sets year-end deadline for non-core selloffs RAINBOW GATE LIMITED: Notice of first meetings SHANDONG INTERNATIONAL: Moody's downgrades ITICs SHANGHAI INTERNATIONAL: Moody's downgrades ITICs SHENZHEN INTERNATIONAL: Moody's downgrades ITICs STEEL BASE LIMITED: Winding-up order TIANJIN INTERNATIONAL: Moody's downgrades ITICs UDL HOLDINGS: Responds to winding-up petition * I N D O N E S I A * ASTRA INTERNATIONAL: Daihatsu to raise stake in JV BANK INTERNASIONAL INDONESIA: Reports of foreign interest PERUSAHAAN UMUM: Results announcement * J A P A N * CASIO COMPUTER: Faces 11% drop in interim FY98 profit EBARA CORP: JRII lowers long-term debt HIBIYA ENGINEERING: Results announcement HINO MOTORS: Posts Y19.14 bln pretax loss LONG TERM CREDIT: New chief vows control is temporary MATSUSHITA-KOTOBUKI ELECTRONICS: Results announcement MITSUBISHI OIL: To merge with Nippon Oil NIPPON OIL: To merge with Mitsubishi Oil NOMURA SECURITIES: Agreement reached on 'sokaiya' suit NOMURA SECURITIES: S&P lowers firm to A- SANYO SHINPAN: New ratings reflect negative outlook SONY CORP: Projects 23% drop in FY98 net profit TOYO EXTERIOR: Results announcement TOYO STEEL CORP: Results announcement * K O R E A * ANAM CONSTRUCTION: Firm is bankrupt CHO HUNG BANK: Cho Hung seeks time for overhaul DONGNAM BANK: Court declares bankruptcy JINDO GROUP: Jindo workout program completed SUNGCHANG CO: To enter workout program * M A L A Y S I A * HANGZHOU SILK TRADING SDN BHD: Voluntary winding-up PERTIWI BERKAT (M) SDN BHD: Voluntary winding-up PETAH NIAGA SDN BHD: Winding-up petition PURNAMA EDARAN KUANTAN SDN BHD: Winding-up petition RINGGIT TRANS (M) SDN BHD: Winding-up petition TEKO CORPORATION SDN BHD: Winding-up petition YAUDA SDN BHD: Winding-up petition * P H I L I P P I N E S * PHILIPPINE AIRLINES: Cathay firms up its move to land PAL * S I N G A P O R E * APP PAPER TRADING: BankBoston provides $100 credit facility HUP SENG HUAT: Results announcement SANKEI PTE LTD: Judicial management lifted URACO HOLDINGS: Reports heavy losses * T H A I L A N D * BANGKOK BANK OF COMMERCE: Results announcement FIRST BANGKOK CITY BANK: Negligent lending investigated IFCT FINANCE: Shareholders approve merger KRUNGTHAI THANAKIT PCL: Results announcement NAVA FINANCE: To merge with Krungthai Thanakit SIAM SYNTEC CONSTRUCTION: Trading allowed in Rehabco THAI AIRWAYS: Privatisation plans hit snag ================================= C H I N A & H O N G K O N G ================================= FATUM FUND MANAGEMENT LIMITED: Notice to creditors -------------------------------------------------- Notice is hereby given that the creditors of Fatum Fung Management Limited (in creditors' voluntary liquidation) are required on or before 25th 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 15th Floor, Hutchison House 10 Harcourt Road, Central, Hong Kong. FUJIAN INTERNATIONAL: Moody's downgrades ITICs ---------------------------------------------- The Asian Wall Street Journal report Moody's Investor Services has lowered its ratings on five Chinese international trust and investment corporations (or ITICs). ITICs act as the investment arm of the government (usually a province or a city). This action came after the Guangdong International Trust & Investment Corporation (China's second largest) missed a 8.75 million coupon payment. These ratings reflect the heightened regulatory risks as well as increasing uncertainties over the availability, strength, and timeliness of government support for trust companies. This action reflects the sharply deteriorating market sentiment towards ITICs and accordingly increasing pressure on their funding. Fujian International Trust & Investment Corp.'s long-term foreign-currency rating debt rating, the long-term foreign- currency deposit ratings and the financial strength rating were affected by Moody's action. Neither the original nor the new ratings were provided by the article. A similar AFP story in the Korea Times stated that following the recent closure of Guangdong International Trust & Investment Corporation, further closures are possible as Chinese authorities have shifted their stance toward weak financial institutions from one of forbearance to one of imposing discipline. GUANGDONG ENTERPRISES: GDE in line for reshuffle of board --------------------------------------------------------- According to the SCMP, Guangdong Enterprises (Holdings) is set for a management reshuffle as part of the provincial government's plan to revive its highly geared overseas investment arm. Reports said that Guangdong Development Bank will be injected into Guangdong Enterprises, which is the parent of several Hong Kong-listed arms including its flagship vehicle Guangdong Investment. Observers are divided over whether this will help Guangdong Enterprises as the bank is believed to be saddled with problem loans. Chairman Zhong Guangchao and director Kang Dian are said to be the only two to stay on the board of directors. The remaining five to be replaced include: Guangnan (Holdings) chairman Sun Guan, Guangdong (Hong Kong)Tours chairman Lin Rongyao and Guangdong Enterprises financial controller Chen Maoqi. It is understood the rescue plan, endorsed by Premier Zhu Rongji, will also include a capital infusion of more than $2 billion. The Guangdong provincial government stressed in a statement issued over the weekend its continued support for Guangdong Enterprises in the form of capital and asset injections. Guangdong Enterprises was said to have asked bankers to extend the due date of syndicated loans arranged by Bankers Trust for two weeks from Monday. GUANGDONG INTERNATIONAL: Warnings on foreign loans -------------------------------------------------- The SCMP reports on the remarks by Premier Zhu Rongji that the central government has no legal obligation to honor unregistered debts made by foreign banks to collapsed Gitic. Such remarks are said to further heighten anxiety among foreign creditors. Analysts said the remarks were intended to serve as a warning to municipal governments and mainland companies to refrain from reckless and illegal foreign borrowing in the belief that Beijing would pick up the bill if things went wrong. They were also meant to remind foreign banks to abide by the rules in making loans. The State Administration of Foreign Exchange (SAFE) imposes strict controls on foreign borrowings, requiring foreign- currency loans to be approved and registered. The head of a western brokerage said the every banker who lends to China must know debts must be registered with SAFE, and in case Gitic does not register the loan, the lender should go after Gitic. Last month, SAFE further tightened borrowing by saying no government body could provide guarantees for foreign loans without its approval to prevent a proliferation of such debts, seen as a key cause of the financial crisis savaging most of Asia. HARVEST WIDE INVESTMENT LIMITED: Winding-up order ------------------------------------------------- A winding-up order notice is hereby given that Harvest Wide Investment Limited is undergoing a companies winding-up proceedings (No 633 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. JOIN YEE KNITTING LIMITED: Winding-up petition ---------------------------------------------- Notice is hereby given that a petition for the winding-up of Join Yee Knitting Limited by the High Court of Hong Kong was, on the 16th day of September, 1998, presented to the said Court by The Hongkong and Shanghai Banking Corporation 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. LION ASIA LIMITED: Results announcement --------------------------------------- Lion Asia Limited reports a net loss of HK$27.9 million on turnover of HK$284 million for the year ending June 30, 1998. This compares to a net loss of HK$34.6 million on turnover of HK$186 million for the corresponding 1997 period. MR RHINO SOUTH AFRICAN RESTAURANT: Notice of first meetings ----------------------------------------------------------- In the High Court of Hong Kong Special Administration Region Court of First Instance, companies winding-up proceeding (No.500 of 1998), a notice of first meetings is hereby given that creditors and contributors of Mr Rhino South African Restaurant Limited will meet on November 2, 1998 at the Official Receiver's Office at 10/F, Queensway Government Offices, 66 Queensway, Hong Kong. OLYMPIC HOTEL: Owner defies banks' seizure ------------------------------------------ According to the SCMP, Hong Kong businessman Li Kuangtsu yesterday protested the court-ordered seizure of the Olympic Hotel by a consortium of banks led by the Bank of China, saying it was illegal and unfair. Mr Li was general manager of the hotel until the seizure on Tuesday and his Hong Kong Jiaxing company owns 50 per cent of Olympic Hotel in a joint venture with a Beijing firm. All the assets of the hotel were seized and its bank accounts, amounting to US$1 million and four million yuan, were frozen. The consortium has entrusted the Olympic on a temporary basis, for up to eight weeks, to management company Liuhexing, while it considers its long-term future. Five senior managers were fired but the remainder of the 500 staff were retained. Bank of China applied to the court for the seizure order after it failed to obtain repayment of the loan. Mr Li said the matter could be resolved by finding an investor and restructuring the debt. He admitted he had only paid a small portion of the debt but said that the loan agreement, signed in March 1987, set down no time limit for repayment. The loan was for five billion yen, a time when one US dollar was worth about 150 yen. Mr Li and his fellow investors borrowed yen because the interest rate was low and the hotel was constructed by Mitsui Construction, which wanted payment in yen. Mr Li challenged the confiscation on the grounds of validity of a guarantee agreement signed at the same time, designating his co-investor, China Sports Service, as the guarantor and registered under British law at a time when the mainland had no guarantee law. He said the guarantee agreement was not valid because it was not signed in the UK as it should have been and the Bank of China had misled the investors and should not have approved China Sports Service as a guarantor as it had a registered capital of one million yuan only. He blamed his inability to repay on the rapid appreciation of the yen since 1987. PICC PROPERTY: Sets year-end deadline for non-core selloffs ----------------------------------------------------------- According to the SCMP, Beijing has set a year-end deadline for the People's Insurance Property Co of China (PICC Property) to sever links with its non-core domestic business affiliates, officials confirmed yesterday. This came as the People's Insurance Co of China (PICC) - the mainland's insurance monolith - is to hive off its main branch of businesses as separate entities in a sector-wide restructuring, to align with international practices. Officials said PICC Property would receive compensation for the spin-off of non-core commercial operations, but gave no details. RAINBOW GATE LIMITED: Notice of first meetings ---------------------------------------------- In the High Court of Hong Kong Special Administration Region Court of First Instance, companies winding-up proceeding (No.593 of 1998), a notice of first meetings is hereby given that creditors and contributors of Rainbow Gate Limited will meet on November 4, 1998 at the Official Receiver's Office at 10/F, Queensway Government Offices,66 Queensway, Hong Kong. SHANDONG INTERNATIONAL: Moody's downgrades ITICs ------------------------------------------------ The Asian Wall Street Journal reports Moody's Investor Services has lowered its ratings on five Chinese international trust and investment corporations (or ITICs). ITICs act as the investment arm of the government (usually a province or a city). This action came after the Guangdong International Trust & Investment Corporation (China's second largest) missed a 8.75 million coupon payment. These ratings reflect the heightened regulatory risks as well as increasing uncertainties over the availability, strength, and timeliness of government support for trust companies. This action reflects the sharply deteriorating market sentiment towards ITICs and accordingly increasing pressure on their funding. Shandong International Trust & Investment Corp.'s long-term foreign-currency rating debt rating, the long-term foreign- currency deposit ratings and the financial strength rating were affected by Moody's action. Neither the original nor the new ratings were provided by the article. A similar AFP story in the Korea Times stated that following the recent closure of Guangdong International Trust & Investment Corporation, further closures are possible as Chinese authorities have shifted their stance toward weak financial institutions from one of forbearance to one of imposing discipline. SHANGHAI INTERNATIONAL: Moody's downgrades ITICs ------------------------------------------------ The Asian Wall Street Journal reports Moody's Investor Services has lowered its ratings on five Chinese international trust and investment corporations (or ITICs). ITICs act as the investment arm of the government (usually a province or a city). This action came after the Guangdong International Trust & Investment Corporation (China's second largest) missed a 8.75 million coupon payment. These ratings reflect the heightened regulatory risks as well as increasing uncertainties over the availability, strength, and timeliness of government support for trust companies. This action reflects the sharply deteriorating market sentiment towards ITICs and accordingly increasing pressure on their funding. Shanghai International Trust & Investment Corp.'s long-term foreign-currency rating debt rating and the long-term foreign-currency deposit ratings were affected by Moody's action. Neither the original nor the new ratings were provided by the article. A similar AFP story in the Korea Times stated that following the recent closure of Guangdong International Trust & Investment Corporation, further closures are possible as Chinese authorities have shifted their stance toward weak financial institutions from one of forbearance to one of imposing discipline. SHENZHEN INTERNATIONAL: Moody's downgrades ITICs ------------------------------------------------ The Asian Wall Street Journal reports Moody's Investor Services has lowered its ratings on five Chinese international trust and investment corporations (or ITICs). ITICs act as the investment arm of the government (usually a province or a city). This action came after the Guangdong International Trust & Investment Corporation (China's second largest) missed a 8.75 million coupon payment. These ratings reflect the heightened regulatory risks as well as increasing uncertainties over the availability, strength, and timeliness of government support for trust companies. This action reflects the sharply deteriorating market sentiment towards ITICs and accordingly increasing pressure on their funding. Shenzhen International Trust & Investment Corp.'s long-term foreign-currency rating debt rating and the long-term foreign-currency deposit ratings were affected by Moody's action. Neither the original nor the new ratings were provided by the article. A similar AFP story in the Korea Times stated that following the recent closure of Guangdong International Trust & Investment Corporation, further closures are possible as Chinese authorities have shifted their stance toward weak financial institutions from one of forbearance to one of imposing discipline. STEEL BASE LIMITED: Winding-up order ------------------------------------ A winding-up order notice is hereby given that Steel Base Limited is undergoing a companies winding-up proceedings (No 640 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. TIANJIN INTERNATIONAL: Moody's downgrades ITICs ----------------------------------------------- The Asian Wall Street Journal reports Moody's Investor Services has lowered its ratings on five Chinese international trust and investment corporations (or ITICs). ITICs act as the investment arm of the government (usually a province or a city). This action came after the Guangdong International Trust & Investment Corporation (China's second largest) missed a 8.75 million coupon payment. These ratings reflect the heightened regulatory risks as well as increasing uncertainties over the availability, strength, and timeliness of government support for trust companies. This action reflects the sharply deteriorating market sentiment towards ITICs and accordingly increasing pressure on their funding. Tianjin International Trust & Investment Corp.'s long-term foreign-currency rating debt rating and the long-term foreign-currency deposit ratings were affected by Moody's action. Neither the original nor the new ratings were provided by the article. A similar AFP story in the Korea Times stated that following the recent closure of Guangdong International Trust & Investment Corporation, further closures are possible as Chinese authorities have shifted their stance toward weak financial institutions from one of forbearance to one of imposing discipline. UDL HOLDINGS: Responds to winding-up petition --------------------------------------------- The board of UDL Holdings Limited wishes to draw the attention of the shareholders that as informed by the solicitors of The Hongkong & Shanghai Banking Corporation Limited in their letter to UDL's solicitors dated 24th October, 1998, a winding up petition has been filed on 24th October, 1998 at the High Court by the Bank against UDL. The petition was filed on the ground that guarantee was given on behalf of a subsidiary, Universal Dockyard Limited for its indebtedness as at 22nd October, 1998 to the Bank in the sums of HK$63,861,451.20, US$4,879,472.12, GBP173,763.84 and NLG103,458.03 together with continually accruing interest thereon and contingent liabilities of HK$2,598,500.00 in respect of banking facilities granted to the Borrower by the Bank and guaranteed by UDL by a contract in writing dated 13th February, 1993. However, the said winding-up petition has not yet been served on UDL. It is the directors' understanding that the presentation of the said winding-up petition is not intended to be a hostile act and it is only intended to protect the position of UDL's creditors in general in view of another UDL's creditor's attempts to advantage itself by applying for a charging order absolute over UDL's assets on 27th October, 1998. The board of UDL will defend against the said application for charging order absolute and the said winding-up petition on the ground that both actions against UDL would jeopardize the interest of UDL and/or its creditors given UDL's present financial situation and the ongoing preparations between UDL and its creditors regarding various schemes of arrangements. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: Daihatsu to raise stake in JV -------------------------------------------------- Singapore Business Times cites an AFP report that Japan's Daihatsu Motor Co Ltd said yesterday that it would double its stake in a joint venture with Indonesia's largest auto producer PT Astra International to 40 per cent. Under a deal signed in Jakarta, Daihatsu's stake in PT Astra Daihatsu Motor will rise from 20 per cent by mid-November, the company said. Nichimen Corp, a major Japanese trading house, will also raise its stake in the joint venture from 5 per cent to 10 per cent, bringing the total stake held by the Japanese side to 50 per cent. Astra in turn will reduce its holding from 70 to 50 per cent of the venture, which was created in January 1992. BANK INTERNASIONAL INDONESIA: Reports of foreign interest --------------------------------------------------------- Singapore Business Times reports three listed companies owned by the Sinar Mas Group, one of Indonesia's largest conglomerates, were sold heavily yesterday by a securities firm also belonging to the group. Brokers told BT that Amantara Securities, which belongs to the Sinar Mas stable, had been selling foreign shares of Tjiwi Kimia, Indah Kiat and Bank Internasional Indonesia (BII). Commenting on speculation about the condition of BII, a broker said a recent audit report noted that the bank was healthy. Ray Anthony Gerungan, deputy head of research at GK Goh Ometraco, told BT that BII plans to raise seven trillion rupiah (S$1.5 billion) through a rights issue but that it is unlikely to succeed in raising such a large amount. He added that several foreign banks have expressed interest in buying BII. PERUSAHAAN UMUM: Results announcement ------------------------------------- Singapore Business Times cites a Bloomberg report that PT Perusahaan Umum Listrik Negara, or PLN, is likely to post a 1998 loss of close to 11 trillion rupiah (S$2.3 billion), even after government subsidies, said Adhi Satriya, president of the state electricity utility. That is double the 579 billion rupiah it lost last year, mostly on the back of the rupiah's 57 per cent depreciation against the US dollar. This year, the rupiah lost as much as 66 per cent of its value. That has raised import costs and swelled the rupiah value of its foreign loans. It has also made dollar-based supply contracts with foreign power companies prohibitively expensive, since PLN earns revenue in rupiah. PLN is now renegotiating 26 power supply contracts, since it cannot afford to pay them, Mr Adhi said. He was speaking at a seminar in Jakarta. ========= J A P A N ========= CASIO COMPUTER: Faces 11% drop in interim FY98 profit ----------------------------------------------------- Nikkei reports Casio Computer Co. scored pretax profit of 10.5 billion yen for the six months through September, an 11% drop from a year earlier and well below its earlier forecast of 14 billion yen, company sources say. Sales of the G-Shock line of wristwatches, targeted at the youth market, were flat, while sales of PHS (personal handyphone system) terminals and pocket pagers fell. The company suffered a 2.2 billion yen loss on an alleged embezzlement of company deposits discovered in June, as well as a 2.5 billion yen stock appraisal loss. EBARA CORP: JRII lowers long-term debt -------------------------------------- Japan Rating & Investment Information Inc has lowered its long-term debt rating of Ebara Corp to single-A from single-A-plus. The downgrade affects 70 billion yen of the company`s outstanding debt as well as Swiss franc- denominated debt of 300 million francs, the rating agency said. While Ebara 's pump and air blowers business is stable, its new business in semiconductor-related precision electronic equipment is deteriorating significantly, the agency added. Orders for semiconductor -related equipment declined as the industry decreased its capital investment amid the sluggish economy. HIBIYA ENGINEERING: Results announcement ---------------------------------------- Bloomberg reports shares of Hibiya Engineering Ltd. fell 5 yen to 445. The air-conditioning engineering company lowered its parent pretax profit forecast to 50.0 percent to 600 million yen for the half-year ended in September. That's 50.0 percent less than the most recent forecast by Toyo Keizai. HINO MOTORS: Posts Y19.14 bln pretax loss ----------------------------------------- Nikkei cites a Dow Jones report that Hino Motors Ltd. said Tuesday it fell into the red in the first fiscal half ended Sept. 30, battered by a slump in domestic truck demand at home and southeast Asia, its main export market. The truckmaker posted a pretax loss of 19.14 billion yen, compared with a profit of 3.55 billion yen a year ago. Hino also said it posted a net loss of 21.44 billion yen, compared with a profit of 2.86 billion yen a year ago, hurt in part by stock valuation losses. Sales tumbled to 223.01 billion yen, compared with 293.94 billion yen. LONG TERM CREDIT: New chief vows control is temporary ----------------------------------------------------- Nikkei reports the incoming president of Long-Term Credit Bank of Japan, which last Friday was placed under "temporary government control," vowed to keep the bank intact and return it to the private sector as soon as possible. Takashi Anzai, Bank of Japan executive director in charge of the financial system, was named to the post Wednesday. Asked how he will go about the job of classifying LTCB lendings according to the potential for recovery, Anzai said each case would be reviewed on individual merit. "Some painful decisions will have to be taken to find a private-sector buyer for the bank," he added. MATSUSHITA-KOTOBUKI ELECTRONICS: Results announcement ----------------------------------------------------- Bloomberg reports shares of Matsushita-Kotobuki Electronics Ltd. fell 210 yen to 2,190 after the maker of consumer electronics reported that net profit for the half-year ended September fell 66 percent to 4.48 billion yen. MITSUBISHI OIL: To merge with Nippon Oil ---------------------------------------- Reuters reports Nippon Oil and Mitsubishi Oil announced on Wednesday they will merge next April 1. The merger will create Japan's largest oil company, commanding about a quarter of the domestic market. The new company and its subsidiaries will hold a combined crude processing capacity of 1.3 million barrels per day (bpd), narrowly surpassing Singapore's total topping capacity. Nippon Oil itself has only one tiny refinery, with a topping capacity of 26,000 barrels per day (bpd), in Niigata on the Sea of Japan coast. It is set to be permanently closed in March 1999. Mitsubishi Oil directly owns 75,000-bpd plant in Kawasaki, near Tokyo, and a 230,000-bpd refinery in Mizushima in western Japan. It also has a majority stake in 50,000-bpd Wakayama Petroleum Refining Co Ltd in western Japan, and 120,000-bpd Tohoku Oil Co Ltd in the northeastern part of Japan's main island of Honshu. The Nippon Oil spokesman also said Mitsubishi Oil and Nippon Oil are considering transfering all their refineries to a refining subsidiary, leaving the new entity as a company specialising mainly in sales. NIPPON OIL: To merge with Mitsubishi Oil ---------------------------------------- Reuters reports Nippon Oil and Mitsubishi Oil announced on Wednesday they will merge next April 1. The merger will create Japan's largest oil company, commanding about a quarter of the domestic market. The new company and its subsidiaries will hold a combined crude processing capacity of 1.3 million barrels per day (bpd), narrowly surpassing Singapore's total topping capacity. Nippon Oil itself has only one tiny refinery, with a topping capacity of 26,000 barrels per day (bpd), in Niigata on the Sea of Japan coast. It is set to be permanently closed in March 1999. Mitsubishi Oil directly owns 75,000-bpd plant in Kawasaki, near Tokyo, and a 230,000-bpd refinery in Mizushima in western Japan. It also has a majority stake in 50,000-bpd Wakayama Petroleum Refining Co Ltd in western Japan, and 120,000-bpd Tohoku Oil Co Ltd in the northeastern part of Japan's main island of Honshu. The Nippon Oil spokesman also said Mitsubishi Oil and Nippon Oil are considering transfering all their refineries to a refining subsidiary, leaving the new entity as a company specialising mainly in sales. NOMURA SECURITIES: Agreement reached on 'sokaiya' suit ------------------------------------------------------ Kyodo News reports shareholders and six former executives of Nomura Securities Co. reached a compromise Tuesday at the Tokyo District Court in a damages suit against the executives concerning their illegal payoffs to "sokaiya" corporate racketeers. The case was settled on condition that Hideo Sakamaki, 63, former Nomura president, and five others pay a total of 380 million yen to the company in compensation for losses caused by unlawful payoffs. NOMURA SECURITIES: S&P lowers firm to A- ---------------------------------------- CreditWire reports Standard & Poor's today downgraded Nomura Securities Co. Ltd.'s long and short-term counterparty ratings to single-'A'-minus and 'A-2', from single-'A'-plus and 'A-1', respectively. The ratings are removed from CreditWatch where they were placed on Sept. 4, 1998. The outlook is negative. The downgrade reflects Nomura's weak operating performance, its higher risk profile due to the adverse market environment, the recent financial and structural problems facing its overseas operations, and greater competition in its home market. Given the weak confidence in the Japanese financial system, Nomura's funding flexibility has also been constrained. Supporting factors are its relatively low leverage and favorable domestic franchise. SANYO SHINPAN: New ratings reflect negative outlook --------------------------------------------------- Standard & Poor's Ratings Group said it assigned a single- A-minus long-term rating and a single-A-2 short term rating to Sanyo Shinpan Finance Co's euro medium-term note program. It said Sanyo Shinpan's long-term counterparty rating is single-A-minus, with a negative outlook. The ratings affect around 30 billion yen of debt in the euro medium-term note program. The ratings reflect the company's strong capitalization and profitability, despite a difficult operating environment, S&P said. However, S&P said its outlook for the company as of Oct 9 anticipates a worsening operating environment for Japan's consumer-finance industry. Consumer-finance companies will be facing deteriorating asset quality because of the weak economy, intensified competition, and tightened liquidity due to problems in the banking sector, S&P said. In accordance with the downward trend, the net- loss a consumer-finance companies has been gradually increasing, S&P said. SONY CORP: Projects 23% drop in FY98 net profit ----------------------------------------------- Nikkei reports Sony Corp. announced Wednesday consolidated net profit of 86.1 billion yen for the six months through September, down 5% year on year. Growing worldwide price competition eroded the profitability of the firm's electronics division. Group sales rose 10% to 3.36 trillion yen, with the electronics division posting 9% growth to 2.39 trillion yen. Group operating profit plunged 15% to 202.5 billion yen, however. Operating profit jumped 61% at Sony's game division, but fell 26% at the electronics division. For the full year through March, Sony expects group net profit to plunge 23% to 170 billion yen as prices are likely to continue falling and the firm assumes yen appreciation in the second half. This would be Sony's first decline in group net profit in four years. Sony projects a parent net loss of about 16 billion yen for the second half. TOYO EXTERIOR: Results announcement ----------------------------------- Bloomberg reports shares of Toyo Exterior Co. fell 105 yen to 1,260. The architectural and ornamental metal products manufacturer reported a fall of 64.3 percent in its parent pretax profit to 1.04 billion yen for the half-year ended Sept. 30. That's 43.5 percent less than the most recent forecast by Toyo Keizai. TOYO STEEL CORP: Results announcement ------------------------------------- Bloomberg reports shares of Toyo Steel Corp. fell 3 yen to 51. The maker of steel bars widened its net loss forecast for the full year ended in September to 1.82 billion yen from 1.26 billion yen. ========= K O R E A ========= ANAM CONSTRUCTION: Firm is bankrupt ----------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Anam Construction Company went insolvent and applied for court receivership. CHO HUNG BANK: Cho Hung seeks time for overhaul ----------------------------------------------- According to the SCMP, ailing Cho Hung Bank wants more time to submit a survival plan as its management battled to work out a rehabilitation plan this week or face retirement. Cho Hung has made a written commitment that its entire management will resign should they fail to come up with a rehabilitation plan. The powerful Financial Supervisory Commission (FSC) asked Cho Hung to present a self-rescue program including the entry of foreign capital and possible mergers by Saturday. The bank said it had failed to attract foreign capital after the commission attached harsh terms to the auction of Korea First Bank and Seoulbank, and it could not meet the deadline. DONGNAM BANK: Court declares bankruptcy --------------------------------------- The Pusan District Court advertised in the Korean language Maeil Kyungje that the Dongnam Bank went insolvent. The creditors have until December 30, 1998 to file their claims. The bank's address is 825-3 Pumil-dong Dong-gu, Pusan and the representative is Mr. Park Un-byong. JINDO GROUP: Jindo workout program completed -------------------------------------------- The Korean language Maeil Kyungje reports that the creditors of the Jindo Company and the Jindo Products Company completed their workout program on Oct. 28, 1998. The program includes a merger among the two companies and the Jindo General Construction Co. A similar story in the Asian Wall Street Journal mentions Jindo's creditors are willing to exchange 120 billion won in debt for a 90 percent stake in the Jindo Corporation, the fur-clothing and shipping container conglomerate's flagship corporation. The deal includes exchanging 175 billion won in debt for convertible bonds issued by the company. The remaining debt, estimated at 700 billion won, will be restructured so that the repayment of the principle will be delayed until the year 2002. Additionally, Jindo will receive as much as $70 million in export credits for the purchase of raw materials. SUNGCHANG CO: To enter workout program -------------------------------------- The Korean language Maeil Kyungje reports that the Hanil Bank decided to have the Sungchang Company go through a workout program. Hanil Bank and other creditors of the company had a meeting on Oct. 28, 1998 and decided to allow a delay of the company's note repayment for three months and to provide 3 trillion won as emergency management funds. =============== M A L A Y S I A =============== HANGZHOU SILK TRADING SDN BHD: Voluntary winding-up --------------------------------------------------- The members of HangZhou Silk Trading Sdn Bhd on 27/10/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 30/11/98. PERTIWI BERKAT (M) SDN BHD: Voluntary winding-up ------------------------------------------------ The members of Pertiwi Berkat (M) Sdn Bhd on 22/10/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 22/11/98. PETAH NIAGA SDN BHD: Winding-up petition ---------------------------------------- Asia Commercial Finance (M) Bhd on 3/8/98 petitioned for the winding-up of Petah Niaga Sdn Bhd. The petition is directed to be heard on 20/11/98. PURNAMA EDARAN KUANTAN SDN BHD: Winding-up petition --------------------------------------------------- Barkath Stores (Kuala Lumpur) Sdn Bhd on 22/9/98 petitioned for the winding-up of Purnama Edaran Kuantan Sdn Bhd. RINGGIT TRANS (M) SDN BHD: Winding-up petition ---------------------------------------------- Asia Commercial Finance (M) Bhd on 3/8/98 petitioned for the winding-up of Ringgit Trans (M) Sdn Bhd. The petition is directed to be heard on 20/11/98. TEKO CORPORATION SDN BHD: Winding-up petition --------------------------------------------- Bank Buruh (M) Bhd on 21/7/98 issued a summon against Teko Corporation Sdn Bhd for an amount owing of RM848,330. YAUDA SDN BHD: Winding-up petition ---------------------------------- Public Bank Bhd on 25/7/98 petitioned for the winding-up of Yauda Sdn Bhd. The petition is directed to be heard on 20/11/98. ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: Cathay firms up its move to land PAL --------------------------------------------------------- According to the Hong Kong Standard, Cathay Pacific Airways has formalised its bid to purchase 40 per cent of PAL for between 10 billion pesos and 14 billion pesos. A formal proposal was submitted on Tuseday, when Northwest Airlines was continuing work on a proposal that was expected to be in before week's end. Cathay and PAL executives went through the proposal in meeting that lasted throughout yesterday. PAL was continuing plans to resume regional services on Nov 11 with 14-times-weekly flights to Hong Kong and daily flights to Tokyo, and to add a third daily flight to Hong Kong on Dec 1 bringing the total to 21 weekly. PAL was said to be seeking an infusion of US$500 million so it could resume fully its operations that were suspended in Sept. It suffered a net loss of 8.08 billion pesos for the last financial year ending in March. The composition of PAL's board of directors has remained unchanged but changes could be expected if Cathay's purchase is accepted. Cathay has indicated its preference for a slight reduction in the PAL fleet and a reworking of routes. ================= S I N G A P O R E ================= APP PAPER TRADING: BankBoston provides $100 credit facility ----------------------------------------------------------- Bank Loan Report says BankBoston is reported to have wrapped a $100 million credit facility for APP Paper Trading, the sales arm of Asia Pulp & Paper Company Ltd. The secured revolving credit facility garnered a 22% oversubscription during general syndication. Pricing is set at Libor plus 175 basis points, with fees of up to 1%. Proceeds from the facility will be used to finance the maintenance of inventory stored in Singapore and receivables generated from inventory sales. HUP SENG HUAT: Results announcement ----------------------------------- Singapore Business Times says Hup Seng Huat posted a net loss of $2.6 million for the year ended July 31, compared with net profit of $2.9 million previously. Group turnover fell 22 per cent to $58 million. Loss per share was 0.88 cent, against earnings per share of 1.16 cents previously. The company said it is "cautiously optimistic" that the negative results "can be turned around" in the current year. SANKEI PTE LTD: Judicial management lifted ------------------------------------------ Singapore Business Times reports Asia Food & Properties yesterday said judicial management of its subsidiary, Sankei Pte Ltd, had, had been lifted since Oct 23, on the application of the judicial managers. URACO HOLDINGS: Reports heavy losses ------------------------------------ Singapore Business Times reports Uraco Holdings yesterday said it is selling a venture with NatSteel Electronics to Nasdaq-listed Unico Inc. For the year ended July 31, Uraco reported a $15.8 million group loss as it laboured under the yoke of plunging margins, higher interest costs, bad debts and stock obsolescence. Turnover was down 8 per cent to $136 million due mainly to the slowdown in the disk drive industry. Uraco said the high-end disk drive market slowed down at the start of its financial year followed by price pressure at the low end of the market. There was no let-up in the downturn and the price war in fact worsened in the second half, it said. The $15 million loss was a stunner given its earnings of $9.5 million the year before and analysts' consensus forecast of a $2.9 million profit. Uraco attributed the losses to under-utilisation of capacity and lower margins; higher interest expense of $3.3 million; a rise in provisions for bad and doubtful debts and obsolete stocks of $8.6 million; higher depreciation; and an exceptional item of $1.1 million with the aborted acquisition of Cam International. Last week, Uraco said it may breach the terms of its $45 million floating rate note issue as its net worth will fall below the $86 million stipulated under the trust deed for the issue. Though the notes are due in 2002, such a breach could render them repayable upon demand. To rectify such a breach, Uraco is "considering" an issue of 5,000 redeemable convertible preference shares to substantial shareholder and non-executive director Chay Kwong Soon at $1,000 each. =============== T H A I L A N D =============== BANGKOK BANK OF COMMERCE: Results announcement ---------------------------------------------- Bangkok Bank of Commerce reports unreviewed quarterly financial statements as a net loss of Bt3.1 billion for the period ending September 30, 1998. FIRST BANGKOK CITY BANK: Negligent lending investigated ------------------------------------------------------- The Bangkok Post reports several former executives of First Bangkok City Bank could face charges by the Bank of Thailand for extending tens of billions of baht in loans without collateral and in violation of standard lending practices. Siriwut Siempakdi, president of First Bangkok City Bank, said "three or four" such cases had been found, each involving amounts of between 5% and 6% of the bank's total loan portfolio. The bank has total outstanding loans of 290 billion baht, with up to 60% non-performing. Seized by the central bank earlier this year, First Bangkok City Bank will be merged with Krung Thai Bank on Sunday. IFCT FINANCE: Shareholders approve merger ----------------------------------------- Shareholders of IFCT Finance and Securities Public Company Limited approved the transfer of assets and liabilities to Krungthai Thanakit PLC. This was in line with the Financial Restructuring Plan and the joint announcement of the Ministry of Finance and the Bank of Thailand (BOT) approved by the Cabinet on August 14, 1998 issued on the same date, mandating 12 finance companies to transfer all assets and liabilities to Krungthai Thanakit PLC. KRUNGTHAI THANAKIT PCL: Results announcement -------------------------------------------- KrungThai Thanakit PCL reports unreviewed quarterly financial statements as a net loss of Bt516 million for the period ending September 30, 1998. This compares to a profit of Bt105 million for the corresponding 1997 period. KTT said for the 9-month period to Sept. 30 net interest and dividend income was a negative Baht 531.79 million against a positive Baht 1,029.54 million for the same period of the previous year due to higher costs of borrowing arising from higher interest rates. At the same time, revenue from lending was lower due to an increase in non-performing loans resulting from the slow-down in the Thai economy, the weakening Baht and very tight liquidity. KTT fully set provisions for non-performing loan based on BOT's regulation for revenue recognition, loans classification and provisioning. As a result, KTT set additional provisions of Baht 2,557.23 million, as of June 30, 1998. NAVA FINANCE: To merge with Krungthai Thanakit ---------------------------------------------- Nava Finance Public Company Limited says the Financial Restructuring Plan approved by the Cabinet on August 14,1998, and of the joint announcement of the Ministry of Finance and the Bank of Thailand issued on the same date, mandating 12 Finance Companies to transfer assets and liabilities to Krungthai Thanakit PLC. Shareholders unanimously resolved to approve the plan to tranfer assets and liabilities to KTT and authorize KTT to submit the amalgamation plan to the Governor of the BOT for his concurrence and subsequently to the Ministry of Finance for approval, in accordance with the relevant laws. SIAM SYNTEC CONSTRUCTION: Trading allowed in Rehabco ---------------------------------------------------- The Stock Exchange of Thailand (SET) has announced that SYNTEC is facing possible delisting and the SET has posted an SP sign on the SYNTEC's securities from 29 September 1998 to 28 October 1998. Now the suspended trading period of 30 days has been terminated. The SET will allow trading of SYNTEC under REHABCO category for 30 days starting from 29 October 1998 to 27 November 1998 to give shareholders a chance to trade the company's securities. THAI AIRWAYS: Privatisation plans hit snag ------------------------------------------ The much-trumpeted "smooth as silk" advertisement for Thai Airways International holds true of its great in-flight service, but it does not apply to its privatisation programme which has hit a bumpy patch. Two out of three options to sell a part of the airline's shares to investors are non-starters, and the remaining avenue has yet to be put to the test. Among the non- starters is a proposed second public offering, and a private placement, that may not be able to coax anything out of the depressed markets. The most likely scenario is that Thai Airways will select a strategic partner from among a stable of suitors consisting of Singapore Airlines, British Airways, Lufthansa, and Qantas. The selected partner is expected to buy up to 450 million shares, or a 30 per cent stake in the Thai national carrier. 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 * * *