TCRAP_Public/981103.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Tuesday, November 3, 1998, Vol. 1, No. 178

                    Headlines


* C H I N A   &   H O N G   K O N G *

ASIA COMMERCIAL HOLDINGS: To dispose of non-core assets
CENTURY CITY: Banks give loan reprieve
CENTURY CITY: In bid to reassure investors
CHINA ELEGANCE: Focuses on debt reduction
CHUNG KAI TRANSPORTATION COMPANY: Winding-up petition

CRYSTALFIX LIMITED: Winding-up petition
FAR EAST ASIA SHIPPING LIMITED: Winding-up order
GOLDEN RELIANCE DEVELOPMENT: Winding-up order
GUANGDONG OVERSEAS: Goctic requests bailout
HONEST BLUE PRODUCT COMPANY LIMITED: Winding-up order

HWA KAY THAI: Asks exchange for annual result postponement
HWA KAY THAI: Hwa Kay Thai still seeks white knight
LINKFUL CORPORATION LIMITED: Winding-up order
N P H INTERNATIONAL: Announcement on legal actions
OLYMPIC HOTEL: Businessman appeals against seizure

OSPREY COMPANY LIMITED: Winding-up petition
PEREGRINE GROUP: Price Waterhouse secures fee rise
SHEEN PATH LIMITED: Winding-up petition
THEME INTERNATIONAL: Extension of time for annual results


* J A P A N *

ASTUGI NYLON: Announces restructuring measures
HONDA MOTOR: US judge approves $300 million settlement
JAPAN LEASING: LTCB repays affiliate's debt to bank
MITSUBISHI ELECTRIC: Expects loss due to restructuring
MITSUI GROUP: Keiretsu reveals major restructuring plans

MITSUI TRUST & BANKING: To withdraw from overseas ops
MORISHO COMPANY: Declares bankruptcy in Sapporo court
NIKON CORP: Reports parent loss of Y2.2 bn
SAKURA BANK: Announces major restructuring plans
SANWA BANK: Lowers 1st-half earnings projections


* K O R E A *

DAEWOO GROUP: Lawmakers doubt chaebols can pay debts
DAEWOO HEAVY: Presents merger plan to creditors
HALLA CEMENT: Asset transfer firm to be established
HANJIN HEAVY: Presents merger plan to creditors
HYUNDAI GROUP: Lawmakers doubt chaebols can pay debts

HYUNDAI PRECISION: Presents merger plan to creditors
JINRO-COORS: May be auctioned off
KUKJE GENERAL CONSTRUCTION: Insolvency notice
LG GROUP: Lawmakers doubt chaebols can pay debts
SAMSUNG GROUP: Lawmakers doubt chaebols can pay debts

SK GROUP: Lawmakers doubt chaebols can pay debts
WOOYANG PAPER: Completes creditor reconciliation


* M A L A Y S I A *

EQUAL LEGION SDN BHD: Winding-up petition
INTRIA BINA SDN BHD: Winding-up petition
JVS ABRASIVE SDN BHD: Voluntary winding-up
PANGLOBAL BHD: Fine-tuning revamp proposal
MASTER EAGLE SDN BHD: Voluntary winding-up

MUTIARA ANTARA (M) SDN BHD: Winding-up petition
NORTEK SDN BHD: Winding-up petition
SAPURA MOTORS BHD: Results - 31/7/98
SIERRA TYCOON CONCRETE PILES SDN BHD: Winding-up petition
SQUIRREL SYSTEMS FAR EAST SDN BHD: Winding-up petition

SUNGEI CAGAR SDN  BHD: Winding-up petition
SYARIKAT P.C. JAYA SDN BHD: Winding-up petition
TA ENTERPRISE BHD: Interim results
TANJUNG TIRUS SDN BHD: Voluntary winding-up
TEMUCO BHD: Voluntary winding-up

TENGGARA CAPITAL BHD: Results - 31/7/98


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

PHILIPPINE AIRLINES: Cathay in negotiations on buy-in terms  


* S I N G A P O R E *

OSPREY MARITIME: S&P lowers credit rating


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

ASIA COMMERCIAL HOLDINGS: To dispose of non-core assets
-------------------------------------------------------
Asia Commercial Holdings has agreed to dispose of its non-
core assets through two directly-owned subsidiaries related
to the Cheung Kong group. Asia Commercial said the $168
million cash to be generated by the proposed transactions
would help ease its cash flow and pave the way for an
expansion of its principal business.

The company said about $30 million would be earmarked for
debt repayments to banks and trade creditors, and $54.5
million would be devoted to further develop its core
business of distribution and retailing of watches and
components. The balance of $83.5 million would be used as
investment and working capital, it said.

The group said its wholly owned subsidiaries, Asia
Commercial (China) Ltd. and Perch International Ltd. were
to sell their 67.4 % combined stake in Asia Commercial
Development Ltd. for $85 million to Zealand Ltd. The 208.28
million shares have a face value of $1 each. Half of
Zealand is owned by Viewsun and half by Cheung Kong (China
Property Development) Ltd.   


CENTURY CITY: Banks give loan reprieve
--------------------------------------
According to the SCMP, Century City International Holding's
debt of HK$574 million due today has been deferred, as
property analysts said. Some analysts argued Century City
might only have to pay interest charges on the outstanding
loan.

Paliburg Holdings, which is 68.1 per cent controlled by
Century City, owes banks US$60 million on a floating-rate
note which is due for repayment on Thursday.

Property analysts said the Century City's banks were likely
to extend the loan repayment period on the first loan as
the company had positive net assets in the form of
Paliburg, which controls a stable of hotels both in Hong
Kong and overseas. Some analysts have valued Paliburg's
stake in Regal Hotels as high as HK$3 billion.

According  to a market source, Paliburg was working with
Hongkong Bank and the Bank of China to secure a HK$600
million loan to cover the repayment of the floating-rate
note. However, some analysts said the new loan had not been
clinched and if it was not finalised early next week,
company chairman Lo Yuk-sui would have to consider an
extension on the repayment of the note.

There was market sentiment that Century City would be able
to dispose of its assets in Paliburg and that Paliburg
would be able to sell off Regal Hotels. One analyst said
creditor banks would be willing to extend the repayment
period or even provide new financing as in many cases
shares had been used as collateral on the loans. Another
market watcher said that there had been a lot of rumors
that they would get the money.

According to the Hong Kong Standard, it was unclear until
last night if a restructuring agreement on the $574 million
of debts could be finalised by today. Two of the group's
principal bankers, Hongkong Bank and Bank of China, are
understood to be polishing terms of a restructuring
package.

One of Century City's bankers said creditors would simply
charge a default fee if Century City failed to make its
repayments by today. He said most banks would give Century
some time to sell off some assets. If creditors are updated
regularly and closely by a borrower on what it is doing to
raise funds, they can wait up to two to three months, but
if they are not informed, they can wait at most one to one
and a half months.

Sources said Century has not been closely updating its
creditors until the middle of this week. Nor has it
substantiated its claims of its bid to sell off some of its
assets to raise cash and pay off maturing debts.

A banker said most creditor banks of Century City expect
the group to sell off its hotel chain in Hong Kong as a way
of raising a substantial amount of money to pay off its
maturing debts, as well as that of its principal
subsidiary, Paliburg International Holdings. But the group
will pay off immediately some $4.6 billion in loan
guarantees once it sells off the hotels.


CENTURY CITY: In bid to reassure investors
------------------------------------------
According to the Hong Kong Standard, Century City
International Holdings announced yesterday that it was in
the process of appointing merchant banks to advise its
respective companies on their financial positions, and the
group is well-positioned to take opportunities when the
economic situation improves. It also said it was in talks
with the creditor banks with a view to arranging either
short-term facilities or reaching standstill agreements and
is hopeful of lenders' support.

The group said last Thursday it was facing liquidity
problems and was seeking arrangements with creditors and
potential lenders to avoid defaults. It has announced an
aggregate commitment of $1.13 billion under various
guarantees that it has given to banks, while facing a
contingent liability of $110 million under a guarantee to
secure a bank facility granted to a Paliburg subsidiary.

Rumors have been rife that Paliburg was working with
HongkongBank and the Bank of China to secure a $600 million
loan to cover the repayment of its floating-rate notes.

Century Group reportedly deferred repayment demands for an
aggregate $573.6 million on Saturday. Paliburg Holdings
also has to meet payment demands for a $70 million loan due
on Thursday, as well as a US$60 million floating rate note
maturing on the same day.


CHINA ELEGANCE: Focuses on debt reduction
-----------------------------------------
China Elegance International Fashion yesterday said it will
focus reducing its current liabilities this year. Company
director Chan Chung-chun said total debt will be reduced to
$7-8 million by the end of this month. The company's bank
debts have been greatly reduced to about $11 million by the
end of September. For the year ending March 31, the company
had liabilities of $113.8 million. It has made a provision
of $53 million for inventories as well as a provision of
$4.5 million for doubtful debts. Company chairman Cheung
Ngan said it is still unsure if provision-making is
required for the financial year under the present economic
conditions.


CHUNG KAI TRANSPORTATION COMPANY: Winding-up petition
-----------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Chung Kai Transportation Company Limited by the High
Court of Hong Kong was, on the 13th day of October, 1998,
presented to the said Court by Tsang Chun Tong and the
petition is heard on 18th day of November, 1998. Other
creditors who support or oppose the making of the order may
appear at the time of the hearing.  


CRYSTALFIX LIMITED: Winding-up petition
---------------------------------------
Notice is hereby given that a petition for the winding-up
of Crystalfix Limited by the High Court of Hong Kong was,
on the 28th day of September, 1998, presented to the said
Court by The Hong Kong and Shanghai Banking Corporation Ltd
and the petition is heard on 11th of November, 1998. Other
creditors who support or oppose the making of the order may
appear at the time of the hearing.  


FAR EAST ASIA SHIPPING LIMITED: Winding-up order
------------------------------------------------
A winding-up order notice is hereby given that Far East
Asia Shipping Limited is undergoing a companies winding-up
proceedings (No 654 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on October 21, 1998. The date of
presentation of petition was September 11, 1998.    


GOLDEN RELIANCE DEVELOPMENT: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that Golden
Reliance Development Limited is undergoing a companies
winding-up proceedings (No 674 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on October 21, 1998.  
The date of presentation of petition was September 21,
1998.    


GUANGDONG OVERSEAS: Goctic requests bailout
-------------------------------------------
According to the SCMP, Goctic has asked the Guangdong
provincial government for more than one billion yuan this
year to help meet its debt obligations, as officials at its
Hong Kong arm said yesterday. They denied Goctic was facing
imminent closure but admitted it faced a liquidity crunch
if funding was not made available.

Goctic and its Hong Kong arms had outstanding foreign debt
of about three billion yuan according to Huaxin (Hong Kong)
managing director Tu Xiaoming who also said that payments
totalling tens of millions of US dollars would fall due
this year. Mr Tu said officials were angry over press
reports yesterday which suggested Goctic and Huaxin would
either be put into liquidation by its creditor banks or
closed by the provincial government. He said that so far no
one bank or creditor has taken legal action to ask for the
liquidation of Goctic or its Hong Kong arm, no demands has
been received from banks for early repayment of debts and
the Guangdong provincial government has continued to
support Goctic.

In July Goctic failed for the first time to meet a foreign
debt payment deadline and has recently missed a payment on
a loan arranged by Commerzbank.

Mr Tu said Goctic had repaid US$2 million out of US$5
million owed to Commerzbank and had reached an agreement to
extend the deadline for payment of the remaining US$3
million. He said the delay was a result of the longer time
needed for foreign exchange as the mainland tightened
capital controls.

He said all Goctic's debt is registered with SAFE. However,
the HK$1 billion the Hong Kong arms owed banks was not
registered because the companies were incorporated in the
SAR. Mr Tu said only a small portion of the HK$1 billion
debt had been pledged with collateral.

Goctic was in talks to sell properties and to chase loans
to help repay debt.

Huaxin director Yang Sechai said there was less pressure on
Goctic's financial resources as the peak period for debt
repayments in August and Sept have passed.


HONEST BLUE PRODUCT COMPANY LIMITED: Winding-up order
-----------------------------------------------------
A winding-up order notice is hereby given that Honest Blue
Product Company Limited is undergoing a companies winding-
up proceedings (No 665 of 1998) in the High Court of the
Hong Kong Special Administrative Region court of first
instance. The date of order is on October 21, 1998. The
date of presentation of petition was September 16, 1998.    


HWA KAY THAI: Asks exchange for annual result postponement
----------------------------------------------------------
According to the SCMP, debt-ridden garment maker Hwa Kay
Thai Holdings has asked the stock exchange to postpone the
announcement of its annual result until Nov 30. The company
said some outstanding issues remained to be resolved before
it could advise its auditors on criteria for compiling the
financial data for the year to March 31. The outstanding
issues include whether it could find an investor to
participate in its restructuring plan and whether the plan
would be accepted by its creditors.


HWA KAY THAI: Hwa Kay Thai still seeks white knight
---------------------------------------------------
According to the Hong Kong Standard, Hwa Kay Thai, which is
ridden with a debt of $400 million, yesterday said it is in
talks with several investors for the financial
restructuring of the group, following Hung Cheong
Machinery's termination of its rescue plan.

Company managing director and acting chairman Ronald Yue
said that the new injection plan is expected to be
confirmed in a short period but if it fails, the company
will have a negative asset value and may go into
liquidation. Restructuring proposals include capital
injections, stake purchases or rights issues.

Mr Yue denies Hung Cheong's earlier withdrawal was related
to Hwa Kay Thai's loss of exclusive licence to distribute
Puma products. The company now owns the licence to sell
Lotto, an Italian sportswear brand in Hong Kong, China,
Taiwan and Thailand.

He said the amount involved in the plan is around $150
million.

The company has formally disposed its interest in Thai
listed company Tanayong Public to its controlling
shareholder Yee Hing in exchange for the cancellation of
its $245 million debt.


LINKFUL CORPORATION LIMITED: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that Linkful
Corporation Limited is undergoing a companies winding-up
proceedings (No 536 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on October 21, 1998. The date of
presentation of petition was August 7, 1998.    


N P H INTERNATIONAL: Announcement on legal actions
--------------------------------------------------
Further to various articles appearing in the press relating
to court actions against N P H International Holdings
Limited, the board of directors would like to set out
details of outstanding court actions.

Concord Oil (HK) Limited has instituted a legal action
against N P H Trading Limited, an indirectly wholly owned
subsidiary of the company, in respect of a disputed claim
for about HK$8,688,000. Xinyuan Trading Company Limited has
instituted a legal action against N P H Petrochemical
Limited, an indirect 60 per cent owned subsidiary of the
company, in respect of a disputed claim of HK$12,787,500.

The aggregate net liabilities of N P H Trading and N P H
Petrochemical are about HK$200,000 as at 31st March, 1998.
Neither the company nor any of its subsidiaries have
provided any guarantees or surety in respect of the
respective obligations of N P H Trading and N P H
Petrochemical under, nor is otherwise involved in, the
transactions giving rise to the above mentioned legal
actions. The Directors also advise that the day to day
operation of N P H Petrochemical has been under Harmony Way
Trading Limited, the holder of the remaining 40 per cent
interest in N P H Petrochemical. All businesses of the
Group are operating normally, save that the trading of
petrochemical products is temporarily suspended pending
full review by the Directors.


OLYMPIC HOTEL: Businessman appeals against seizure
--------------------------------------------------
According to the SCMP, Li Kuangtsu, who until Tuesday was
general manager of the Olympic Hotel in northwest Beijing,
said he had submitted an appeal to the city's High Court to
appeal against the seizure of the hotel and the handing
over of it to a consortium.

Mr Li is managing director of Hong Kong Jiaxing (China)
Investment - a partner in a joint venture with a Beijing
firm which built and ran the firm. He remains in his office
in the hotel.

Mr Li said the seizure was illegal because the land on
which the hotel stands did not belong to it but to the
Capital Gymnasium next door. Thus the land could not be
used as collateral for the loan in question and the
original collateral agreement signed in March 1987 was
invalid.


OSPREY COMPANY LIMITED: Winding-up petition
-------------------------------------------
Notice is hereby given that a petition for the winding-up
of Osprey Company Limited by the High Court of Hong Kong
was, on the 7th day of October, 1998, presented to the said
Court by The Hong Kong and Shanghai Banking Corporation
Limited and the petition is heard on 11th day of November,
1998. Other creditors who support or oppose the making of
the order may appear at the time of the hearing.  


PEREGRINE GROUP: Price Waterhouse secures fee rise
--------------------------------------------------
According to the SCMP, PriceWaterhouseCoopers, liquidators
for the collapsed Peregrine Group have convinced the court
to bump up their initial fees with a more detailed bill
after the court slam in June. But as PW partner and
liquidator in charge of Peregrine David Hague said
yesterday the court would sanction payment of 50 per cent
of the claim - $38 million - pending final confirmation
from the judge and subject to tax. The sum is payment
for the initial nine weeks between the provisional
liquidation and the winding up orders, and also accounts
for fees due to Price Waterhouse's legal advisers.

Mr Hague said the present method of billing was still on a
time-cost basis.

A total of $2.17 billion has been realised as of July.
Price Waterhouse estimates further realisations will be in
the region of $1.45 billion to $5.6 billion. Fees for the
Official Receiver's role have so far amounted to an
estimated $22.5 million.

The liquidation is set to span up to five years with a team
of more than 40 people and experts from Price Waterhouse
offices worldwide.


SHEEN PATH LIMITED: Winding-up petition
---------------------------------------
Notice is hereby given that a petition for the winding-up
of Sheen Path Limited by the High Court of Hong Kong was,
on the 7th day of October, 1998, presented to the said
Court by Fernway Trading Co Ltd and the petition is heard
on 11th of November, 1998. Other creditors who support or
oppose the making of the order may appear at the time of
the hearing.  


THEME INTERNATIONAL: Extension of time for annual results
---------------------------------------------------------
A notice on the Hong Kong Standard says that Theme
International Holdings Limited has applied to the stock
exchange for a further extension for the publication of the
1997/98 annual results on or before November 20, and the
despatch of the company's annual report on or before
November 30.

The notice says that additional time is required for the
quantification of the impact of certain events on the
group's financial position before the annual audit can be
finalised. Such events include, amongst others, provisions
on stock and accounts receivable, the amount of potential
liability of the group under certain recent legal  
proceedings and the closure of 23 retail outlets of the
group in Hong Kong. The annual general meeting of Theme
International will be held on Dec 23.


=========
J A P A N  
=========

ASTUGI NYLON: Announces restructuring measures
----------------------------------------------
Japan's Astugi Nylon Industrial Co. announced a series of
restructuring measures and steeply cut its earnings
projections for the year through March 1999. The maker of
socks and pantyhose will absorb its sales affiliate, Atsugi
Nylon Shoji Co in October 1999. The merger ratio is one
Atsugi Nylon Shoji share for 0.9 Atsui Nylon Industrial
share. Before the merger, the companies will liquidate a
number of production and sales affiliates and implement
other cost-reduction measures, such as an employees early-
retirement plan, Atsugi Nylon Industrial said.

Because of a 66 billion yen extraordinary loss likely to
stem from liquidating unprofitable operations, Atsugi Nylon
Industrial said it now expects to post parent loss of 63.5
billion yen for the year ending March 1999. It had
previously forecast parent net profit of 1.1 billion yen.
Sales are projected at 38.7 billion yen and pretax profit
is seen at 2.06 billion yen -- mostly unchanged from the
previous forecast.   


HONDA MOTOR: US judge approves $300 million settlement
------------------------------------------------------
A federal judge in the US has approved a settlement valued
at nearly $330 million between American Honda Motor Co. and
1,800 of its dealers who charged the auto maker with
bribery. A class action lawsuit brought against the Honda
Motor Co. unit by dealers alleged that Honda executives
conspired to send cars to those willing to pay exorbitant
bribes and punished dealers who refused.

Under the terms of settlement approved October 9 by US
District Judge J. Frederick Motz, American Honda Motor Co.,
based in Torrance California, will pay the dealers a total
of $329.9 million, lawyers in the case said Friday.

In exchange, the dealers will drop their bribery claims.
Several Honda executives and dealers have faced criminal
charges in bribery cases. Three Honda managers have
received jail time on charges stemming from a government
probe.


JAPAN LEASING: LTCB repays affiliate's debt to bank
---------------------------------------------------
Kyodo News reports the Long-Term Credit Bank of Japan
(LTCB) signed a preliminary contract to guarantee most of
134 billion yen owed by its affiliate, Japan Leasing Corp.,
to Norinchukin Bank without detailing it in its mandated
financial report for the year ended March 31, financial
sources said Monday. LTCB inked the contract in January at
the request of Norinchukin Bank, the central bank for
agricultural and forestry financial cooperatives, due to
jitters over the financial health of Japan Leasing, they
said.

LTCB repaid the debts, excluding those backed by
collateral, to Norinchukin Bank, because Japan Leasing
filed for court protection from its creditors last
September, the sources said.

LTCB also made a similar promise to Tokai Bank over parts
of debt owed by Japan Leasing, the sources said. Tokai Bank
had outstanding loans of 45.8 billion yen to Japan Leasing
at the end of August. The Financial Supervisory Agency is
trying to determine whether the Norinchukin Bank case is
dealt with appropriately while liaising with the Securities
and Exchange Surveillance Commission, the sources said.
The agency found such loan-guarantee promises during its
inspection of LTCB, sources said.


MITSUBISHI ELECTRIC: Expects loss due to restructuring
------------------------------------------------------
Mitsubishi Electric, the third largest electronic equipment
maker in Japan, expects to take an extraordinary loss of
$80 billion yen in the year to March because of
restructuring in the US. The firm said it would close its
US arm, Mitsubishi Electric America, and quit several
businesses to focus on digital television and hardware and
software.  


MITSUI GROUP: Keiretsu reveals major restructuring plans
--------------------------------------------------------
The Financial Times reports on the Mitsui group of
companies, one of Japan's leading keiretsu industrial
families, which have unveiled major restructuring plans in
light of weak results. The article says the restructurings
highlight the fundamental weaknesses in the keiretsu
system: banks are under pressure to call in leans to
troubled affiliates, but this threatens to cause a wave of
bankruptcies and leave banks with new losses.

Key Mitsui companies mentioned in the article are Sakura
Bank; Mitsui Trust & Banking; Fujita, a troubled
construction company supported by Sakura Bank.


MITSUI TRUST & BANKING: To withdraw from overseas ops
-----------------------------------------------------
The Associated Press reports two of Japan's largest banks,
both members of the powerful Mitsui group, announced
drastic restructuring plans Friday calling for massive job
cuts at Sakura Bank Ltd. and Mitsui Trust & Banking Co.'s
withdrawal from overseas operations.

A Mitsui Trust spokesman said the company will close down
all overseas banking operations to focus on its domestic
asset-management and retail-trust businesses. Mitsui Trust
has begun talks with State Street Bank and Trust Co. to
have a planned joint venture assume part of its asset-
management business, the Nihon Keizai newspaper reported.
Mitsui Trust will also transfer its foreign custody
business to the U.S. bank. The two companies will jointly
offer trustee services for investment trusts, Japan's top
business daily said.


MORISHO COMPANY: Declares bankruptcy in Sapporo court
-----------------------------------------------------
Kyodo News reports the Sapporo District Court on Friday
declared bankrupt condominium seller Morisho Co., based in
Sapporo, northern Japan. Total debts at Morisho are
estimated at 20 billion yen, according to the Credit
research agency Teikoku Databank Ltd. The Japan Securities
Dealers Association said in the morning it has suspended
over-the-counter trading to Morisho shares for the day.

The company, established in 1974, grew to become the
largest condominium seller in Hokkaido. But declining
housing demand, combined with the collapse of Hokkaido
Takushoku Bank, has made it difficult for the company to
raise funds to support business operation, industry sources
said.


NIKON CORP: Reports parent loss of Y2.2 bn
------------------------------------------
Nikon Corp. reported a parent loss of 2.2 billion yen for
its fiscal first half, and forecast it would be in red for
the full year. The Japanese camera company and a leading
maker of steppers, which are used in making semiconductors,
said it was hurt by weakness in the semiconductor area, the
recession in Japan and the broader Asian economic crisis.

The company recorded a loss of 5.99 billion yen in the
period, compared with an operating profit of 5.08 billion
yen a year earlier. It also posted a net loss of 1.37
billion yen, compared with a net profit of 2.64 billion yen
a year earlier, as sales fell 13% to 127.63 billion yen
from 146.93 billion yen. Last year, the company posted a
pretax profit of 6.13 billion yen.

For the full year through March 1999, Nikon forecast sales
of 270 billion yen, a pretax loss of five billion yen and a
net loss of six billion yen for the parent company. In its
most-recent fiscal year ending March 31, 198, it had sales
of 293.93 billion yen, pretax profit of 8.36 billion yen
and a net profit of 3.03 billion yen. Analysts said the key
to a full recovery is improvement in the semiconductor
industry, which is a key consumer of its products.


SAKURA BANK: Announces major restructuring plans
------------------------------------------------
The Associated Press reports two of Japan's largest banks,
both members of the powerful Mitsui group, announced
drastic restructuring plans Friday calling for massive job
cuts at Sakura Bank Ltd. and Mitsui Trust & Banking Co.'s
withdrawal from overseas operations.

Sakura, the core bank of the Mitsui industrial group, will
slash 3,000 jobs, or 20 percent of its total work force,
within three years, said a bank spokesman who declined to
be named. The cost-cutting move comes as Sakura and many
other Japanese banks scramble to secure funds to write off
huge loads of bad loans amid the country's worst recession
since World War II.  


SANWA BANK: Lowers 1st-half earnings projections
------------------------------------------------
Kyodo News reports Sanwa Bank said Monday it has revised
downward its unconsolidated earnings estimates for the
first half of fiscal 1998 as it boosted disposal of problem
loans. The bank now anticipates a net profit of 30 billion
yen for the April-September first half, down from the
initial projection of 50 billion yen, and a pretax profit
of 14 billion yen, down from the earlier estimate of 70
billion yen. The downward revision stemmed from an increase
in write-offs of problem loans to 210 billion yen from the
originally planned 80 billion yen, the bank said.


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

DAEWOO GROUP: Lawmakers doubt chaebols can pay debts
----------------------------------------------------
The Korea Times reports a lawmaker from the ruling party in
the National Assembly expressed doubts that the nation's
five largest family owned conglomerates (or chaebols) are
capable of repaying their loans and interest on time. The
five top chaebols are Daewoo, Hyundai, LG, Samsung, and
SK.

Representative Kim Tae-shik of the National Congress
for New Politics (the ruling political party) raised his
concerns at a review meeting at the National Assembly of
the Financial Supervisory Board.  

The lawmaker mentioned that the interest expenses of the 59
units of the top five chaebols listed on the Korea Stock
Exchange have increased four-fold over the past four years
reaching a level of 16.29 trillion won. Additionally, the
profitability of these listed companies has been less than
1 percent since 1996 and reported at a negative values
since last year.

The combined debts of these top five chaebols was reported
at 138 trillion won.


DAEWOO HEAVY: Presents merger plan to creditors
-----------------------------------------------
The Korea Herald reports three of the country's rolling-
stock companies have presented merger plans to their
creditor banks. Features of these plans includes a 10
percent cut in staff, and a reduction of their combined
debt to equity ratio to less than 200 percent via equity
swaps, debt restructuring, and foreign capital inducements.   
The companies considering merging are Hyundai Precision and
Industry Company, Daewoo Heavy Industries Company, and
Hanjin Heavy Industries.

These three companies have reportedly agreed to a joint
ownership share ratio of 2 parts Hyundai, 2 parts Daewoo,
and 1 part Hanjin. Additionally, the new train car
manufacturing company could have a 50 percent foreign owned
stake.


HALLA CEMENT: Asset transfer firm to be established
---------------------------------------------------
The Korea Herald reports Halla Cement Company and the US
investment firm of Rothschild Inc. will establish RH
Cement, a company to transfer the assets of Halla Cement to
foreign investors. The creation of this firm was at the
request of foreign investors who have concerns that their
investments may make them responsible for unforeseen
liabilities of Halla Cement.

Halla Cement completed its creditor reconciliation on
October 12, and the Korea Herald reports that it is
currently under court receivership.  

The Halla Group, the owner of Halla Cement, went bankrupt
last year under the huge debts of Halla Engineering & Heavy
Industries Company. Rothschild Inc. proposed in March a
deal to provide $1 billion in bridge loans to Halla to get
the group out of trouble. The plan also required creditors
to write off about 3.95 trillion won in debt and to sell
some affiliates, including Halla Cement.


HANJIN HEAVY: Presents merger plan to creditors
-----------------------------------------------
The Korea Herald reports three of the country's rolling-
stock companies have presented merger plans to their
creditor banks. Features of these plans includes a 10
percent cut in staff, and a reduction of their combined
debt to equity ratio to less than 200 percent via equity
swaps, debt restructuring, and foreign capital inducements.   
The companies considering merging are Hyundai Precision and
Industry Company, Daewoo Heavy Industries Company, and
Hanjin Heavy Industries.

These three companies have reportedly agreed to a joint
ownership share ratio of 2 parts Hyundai, 2 parts Daewoo,
and 1 part Hanjin. Additionally, the new train car
manufacturing company could have a 50 percent foreign owned
stake.


HYUNDAI GROUP: Lawmakers doubt chaebols can pay debts
-----------------------------------------------------
The Korea Times reports a lawmaker from the ruling party in
the National Assembly expressed doubts that the nation's
five largest family owned conglomerates (or chaebols) are
capable of repaying their loans and interest on time. The
five top chaebols are Daewoo, Hyundai, LG, Samsung, and
SK.

Representative Kim Tae-shik of the National Congress
for New Politics (the ruling political party) raised his
concerns at a review meeting at the National Assembly of
the Financial Supervisory Board.  

The lawmaker mentioned that the interest expenses of the 59
units of the top five chaebols listed on the Korea Stock
Exchange have increased four-fold over the past four years
reaching a level of 16.29 trillion won. Additionally, the
profitability of these listed companies has been less than
1 percent since 1996 and reported at a negative values
since last year.

The combined debts of these top five chaebols was reported
at 138 trillion won.


HYUNDAI PRECISION: Presents merger plan to creditors
----------------------------------------------------
The Korea Herald reports three of the country's rolling-
stock companies have presented merger plans to their
creditor banks. Features of these plans includes a 10
percent cut in staff, and a reduction of their combined
debt to equity ratio to less than 200 percent via equity
swaps, debt restructuring, and foreign capital inducements.   
The companies considering merging are Hyundai Precision and
Industry Company, Daewoo Heavy Industries Company, and
Hanjin Heavy Industries.

These three companies have reportedly agreed to a joint
ownership share ratio of 2 parts Hyundai, 2 parts Daewoo,
and 1 part Hanjin. Additionally, the new train car
manufacturing company could have a 50 percent foreign owned
stake.


JINRO-COORS: May be auctioned off
---------------------------------
The Korea Herald reports that the Jinro-Coors Brewing
company might be auctioned off by its creditors publicly.  
The report also states that the creditors will hold a
meeting next week to consider the acquisition offers made
by the jointly Korean/Belgian owned Oriental Brewery (OB)
and the US Coors Brewing Company.

Late last month, the Korea Herald cited "unconfirmed"
reports that the American Coors Brewing Company backed out
of its deal with the main creditors of Jinro-Coors Brewing
Company to invest $100 million.

In June of this year, it was reported that the Coors
takeover and investment in Korea's third largest brewery
would be conditional on its creditor banks writing off more
than half of its $481 million in debts and convert the rest
of the debts into equity. Jinro Coors Brewing Co. holds
20 percent of Korea's beer market and is currently  
operating under court receivership. It was started as a
joint venture between Coors and Korea's Jinro conglomerate.  
However, Coors sold its 33 percent ownership in the
Jinro-Coors to Jinro when Jinro entered a financial crisis.


KUKJE GENERAL CONSTRUCTION: Insolvency notice
---------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief Section, the Kukje General Construction Company went
insolvent.


LG GROUP: Lawmakers doubt chaebols can pay debts
------------------------------------------------
The Korea Times reports a lawmaker from the ruling party in
the National Assembly expressed doubts that the nation's
five largest family owned conglomerates (or chaebols) are
capable of repaying their loans and interest on time. The
five top chaebols are Daewoo, Hyundai, LG, Samsung, and
SK.

Representative Kim Tae-shik of the National Congress
for New Politics (the ruling political party) raised his
concerns at a review meeting at the National Assembly of
the Financial Supervisory Board.  

The lawmaker mentioned that the interest expenses of the 59
units of the top five chaebols listed on the Korea Stock
Exchange have increased four-fold over the past four years
reaching a level of 16.29 trillion won. Additionally, the
profitability of these listed companies has been less than
1 percent since 1996 and reported at a negative values
since last year.

The combined debts of these top five chaebols was reported
at 138 trillion won.


SAMSUNG GROUP: Lawmakers doubt chaebols can pay debts
-----------------------------------------------------
The Korea Times reports a lawmaker from the ruling party in
the National Assembly expressed doubts that the nation's
five largest family owned conglomerates (or chaebols) are
capable of repaying their loans and interest on time. The
five top chaebols are Daewoo, Hyundai, LG, Samsung, and
SK.

Representative Kim Tae-shik of the National Congress
for New Politics (the ruling political party) raised his
concerns at a review meeting at the National Assembly of
the Financial Supervisory Board.  

The lawmaker mentioned that the interest expenses of the 59
units of the top five chaebols listed on the Korea Stock
Exchange have increased four-fold over the past four years
reaching a level of 16.29 trillion won. Additionally, the
profitability of these listed companies has been less than
1 percent since 1996 and reported at a negative values
since last year.

The combined debts of these top five chaebols was reported
at 138 trillion won.


SK GROUP: Lawmakers doubt chaebols can pay debts
------------------------------------------------
The Korea Times reports a lawmaker from the ruling party in
the National Assembly expressed doubts that the nation's
five largest family owned conglomerates (or chaebols) are
capable of repaying their loans and interest on time. The
five top chaebols are Daewoo, Hyundai, LG, Samsung, and
SK.

Representative Kim Tae-shik of the National Congress
for New Politics (the ruling political party) raised his
concerns at a review meeting at the National Assembly of
the Financial Supervisory Board.  

The lawmaker mentioned that the interest expenses of the 59
units of the top five chaebols listed on the Korea Stock
Exchange have increased four-fold over the past four years
reaching a level of 16.29 trillion won. Additionally, the
profitability of these listed companies has been less than
1 percent since 1996 and reported at a negative values
since last year.

The combined debts of these top five chaebols was reported
at 138 trillion won.


WOOYANG PAPER: Completes creditor reconciliation
------------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Wooyang Paper Co. completed its
creditor reconciliation procedure on October 28th, 1998.  
The company's address is 340-127 Shindang-dong, Chung-gu,
Seoul.


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

EQUAL LEGION SDN BHD: Winding-up petition
-----------------------------------------
Supermix Concrete (Malaysia) Sdn Bhd on 3/9/98 petitioned
for the winding-up of Equal Legion Sdn Bhd.


INTRIA BINA SDN BHD: Winding-up petition
----------------------------------------
So Le Tek Trading on 2/10/98 petitioned for the winding-up
of Intria Bina Sdn Bhd. The petition is directed to be
heard on 26/1/99.


JVS ABRASIVE SDN BHD: Voluntary winding-up
------------------------------------------
The members of JVS Abrasive Sdn Bhd on 27/10/98 resolved to
wind-up the company voluntarily. Creditors are requested to
submit their claims before 30/11/98.


PANGLOBAL BHD: Fine-tuning revamp proposal
------------------------------------------
Singapore Business Times reports Panglobal Bhd is expected
to hold a meeting with its creditors on January 15 next
year to present its scheme of arrangements (SOA) under the
group's restructuring proposal.

"The company has already had discussions with its bankers
and is currently fine-tuning the SOA, its chief executive
officer Alex Wong said yesterday.

"We had applied for six months to clear everything and we
are not going to drag out feet," said Wong, adding that he
sees the arrangement as feasible.

The listed PanGlobal and its four subsidiaries had in late
September obtained a restraining order under Section 176
(10) of the Companies Act 1965, barring their creditors
from instituting or commencing or continuing any action or
proceeding against them for six months.


MASTER EAGLE SDN BHD: Voluntary winding-up
------------------------------------------
The members of Master Eagle Sdn Bhd on 27/10/98 resolved to
wind-up the company voluntarily. Creditors are requested to
submit their claims before 30/11/98.


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.


NORTEK SDN BHD: Winding-up petition
-----------------------------------
HSS Intergrated Sdn Bhd on 1/10/98 petitioned for the
winding-up of Nortek Sdn Bhd. The petition is directed to
be heard on 10/3/99.


SAPURA MOTORS BHD: Results - 31/7/98
------------------------------------
Sapura Motors Bhd (listed on the KLSE) reported a post-tax
loss of RM5.835mil for the 6 months ended 31/7/98, compared
to a post-tax profit of RM4.102mil previously. EPS fell
227% from RM0.22 to a loss per share of RM0.28


SIERRA TYCOON CONCRETE PILES SDN BHD: Winding-up petition
---------------------------------------------------------
Prodeal Sdn Bhd on 15/9/98 petitioned for the winding-up of
Sierra Tycoon Concrete Piles Sdn Bhd. The petition is
directed to be heard on 8/1/99.


SQUIRREL SYSTEMS FAR EAST SDN BHD: Winding-up petition
------------------------------------------------------
SimeFinance Bhd on 3/7/98 petitioned for the winding-up of
Squirrel Systems FAr East Sdn Bhd. The petition is directed
to be heard on 10/2/99.


SUNGEI CAGAR SDN  BHD: Winding-up petition
------------------------------------------
Prodeal Sdn Bhd on 15/9/98 petitioned for the winding-up of
Sungei Cagar Sdn Bhd. The petition is directed to be heard
on 8/1/99.


SYARIKAT P.C. JAYA SDN BHD: Winding-up petition
-----------------------------------------------
Prodeal Sdn Bhd on 15/9/98 petitioned for the winding-up of
Syarikat P.C. Jaya Sdn Bhd. The petition is directed to be
heard on 8/1/99.


TA ENTERPRISE BHD: Interim results
----------------------------------
TA Enterprise Bhd, one of the largest stockbroking firms
listed on the KLSE, reported a group pre-tax loss of
RM571.7mil for the 6months ended 31/7/98 compared to a pre-
tax profit of RM181.9mil previously.

The loss was mainly attributed to a much lower turnover
from RM548.5mil previously to RM284.3mil in the current
period.

An additional RM622mil was also provided for and written
off during the period as against RM431mil in the previous
financial year.


TANJUNG TIRUS SDN BHD: Voluntary winding-up
-------------------------------------------
The members of Tanjung Tirus Sdn Bhd on 26/10/98 resolved
to wind-up the company voluntarily. Creditors are requested
to submit their claims before 26/11/98.


TEMUCO BHD: Voluntary winding-up
--------------------------------
The members of Temuco Bhd on 24/10/98 resolved to wind-up
the company voluntarily. Creditors are requested to submit
their claims before 2/12/98.


TENGGARA CAPITAL BHD: Results - 31/7/98
---------------------------------------
Tenggara Capital Bhd (listed on the KLSE) reported a post-
tax loss of RM14.212mil for the 6months ended 31/7/98,
compared to a post-tax profit of RM4.234mil previously.
EPS fell 375% from 6.13sen to a loss per share of 16.87sen
during the same period.


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

PHILIPPINE AIRLINES: Cathay in negotiations on buy-in terms  
-----------------------------------------------------------
According to the SCMP, Cathay Pacific Airways has completed
a study of PAL and is negotiating the terms of a buy-in
that would give it management rights.

Cathay Pacific country manager Alex Shum said there are
still differences but both sides are keen to close the gap.
He said Cathay Pacific planned to submit a formal offer
soon. Cathay wanted a management contract but would not
bring in a lot of its own managers.

Under Philippine law, Cathay Pacific managers might have to
be considered advisers instead of employees.


PHILIPPINE AIRLINES: Unpaid repair bill grounds PAL plane
---------------------------------------------------------
According to the Hong Kong Standard, Hong Kong Aircraft
Engineering Co. (Haeco) is holding an aircraft of PAL
because of unpaid fees for its repair and maintenance
amounting to US$3 million, which is due to a
misunderstanding between PAL and the US Export-Import Bank
(Eximbank), one of the airline's creditors and part of a
consortium of banks that arranged for PAL's purchase of
four Boeing aircraft.

PAL's decision to send its staff to retrieve its stranded
plane comes as the Philippine Securities and Exchange
Commission authorised the airline's liquidator to pay off
its debts.

Cathay, which owns Haeco, has made an offer to buy PAL. A
source said the negotiations now focused on the proposed
infusion of about US$200 million as Cathay's equity in PAL,
but it is not clear whether this amount represents the
entire 40 per cent stake which Cathay is reportedly
seeking, or just an upfront payment to help PAL resume full
operations.


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

OSPREY MARITIME: S&P lowers credit rating
-----------------------------------------
The Asian Wall Street Journal reports Standard & Poor's
Ratings Group has lowered its corporate credit rating of
Osprey Maritime Ltd. from BB to B+. The report cites
Osprey's weak operating cash flows due to lower rates for
its crude oil and refined products tankers. Operations
from these two markets account for more than 50 percent of
the company's revenue.


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
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term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact
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            * * * End of Transmission * * *