---

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      

      Monday, November 9, 1998, Vol. 1, No. 182

                    Headlines


* C H I N A   &   H O N G   K O N G *

BAMBOO VILLAGE CATERING LIMITED: Winding-up order
CHI CHEUNG INVESTMENT: Sued by Fair Eagle over $113 loan
CHINA OCEAN: To delay closing date for commercial paper
COMPUTER 88 LIMITED: Winding-up order
COLOUR PROFIT TRADING: Winding-up order

GUANGDONG INTERNATIONAL: S&P seeks info on creditor banks
GUANGDONG INTERNATIONAL: Beijing bans securities trading
GUOCO GROUP: Shares rise on takeover rumors
GZITIC HUALING: Announcement on shareholding
HOPEWELL HOLDINGS: Cancellation won't affect investment

HWA KEE PILING & CONSTRUCTION: Winding-up order
KPS VIDEO: Receivers move in as video chain KPS closes
OPTIMA (HK) LIMITED: In creditors' voluntary liquidation
PALIBURG HOLDINGS: Paliburg in $600m loan agreement
PEARL ORIENTAL HOLDINGS: Plans for hotel sale

SHINE SOURCES DEVELOPMENT: Winding-up order
SINOAMERICAN TELECOM: Vying parties warned on tactics
SOUTH BOSS RESOURCES LIMITED: Winding-up petition


* J A P A N *

ALL NIPPON AIRWAYS: Announces work force cuts
JAPAN LEASING: Goldman Sachs helps seek receiver
LONG TERM CREDIT: FSA chief says LTCB should stay
MITSUBISHI MOTORS: To close some domestic production lines
MITSUBISHI MOTORS: To lay off 1,000 at U.S. subsidiaries


* K O R E A *

CHUNGBANG CO: Applies for workout program
CHUNGNAM SPINNING: Applies for workout program
ILSHIN MACHINE: Starts creditor reconciliation procedure


* M A L A Y S I A *

INTEGRATED SEMICONDUCTOR: Voluntary winding-up
KEMAJUAN FLORA SDN BHD: Winding-up petition
MALAYSIA BRITISH ASSURANCE BHD (MBA): Loss for 17 months
METRO JELITA SDN BHD: Winding-up petition
REKAPACIFIC: Troubled group to fend off closure
WASTECARE (PENANG) SDN BHD: Voluntary winding-up


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

PHILIPPINE AIRLINES: PAL ready to give control to Cathay


* S I N G A P O R E *

CAM INTERNATIONAL: To sell stake in Cam Agro-Innovation
KAY HIAN: Lays off support staff
KEPPEL CORP: Announces major cuts and mergers


* T H A I L A N D *

ALPHATEC ELECTRONICS: Files restructuring plan
MANAGER MEDIA GROUP: No objections to restructuring plan


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

BAMBOO VILLAGE CATERING LIMITED: Winding-up order
-------------------------------------------------
A winding-up order notice is hereby given that Bamboo
Village Catering Limited is undergoing a companies winding-
up proceedings (No 670 of 1998) in the High Court of the
Hong Kong Special Administrative Region court of first
instance. The date of order is October 29, 1998. The date
of presentation of petition was September 21, 1998.    


CHI CHEUNG INVESTMENT: Sued by Fair Eagle over $113 loan
--------------------------------------------------------
According to the SCMP, troubled Chi Cheung Investment was
sued by money lender Fair Eagle Finance over an initial
loan of $113 million extended to Chi Cheung on March 30. By
the end of July, the company had failed to pay interest of
$1.2 million and a further $2.1 million was due between
the end of August and September 29 this year. As of
November 3, the amount outstanding stood at $117.82
million, including accrued interest plus default interest.
Fair Eagle was also seeking costs.


CHINA OCEAN: To delay closing date for commercial paper
-------------------------------------------------------
State-run China Ocean Shipping (Cosco) has been forced to
extend the book closing date for its US$200 million
commercial paper programme from today until next week due
to a slow take-up, according to an arrangement and local
bankers.

The commercial paper is the first substantial international
issue by a mainland company since Guangdong International
Trust and Investment Corp.'s closure last month and the
outcome is being watched closely for clues of future
commitment to mainland firms.

Bankers said negative publicity this week about a possible
management shake-up at Cosco might not necessarily have
affected the take-up, but it did raise concerns about
management strength. Reports this week said Cosco's top
officials would be removed due to poor management, the
group would be restructured and a government loan worth two
billion yuan frozen. These have all been denied by Cosco.

The 200 million commercial paper is being backed up by a
letter of credit to be issued by Rabobank. Upon forming the
syndicate, the letter-of-credit facility will be issued in
the US. The sources said the slow take-up of the facility
had resulted in a change in the issuer, from Cosco Pacific
to its immediate holding company, Cosco (Hong Kong).  


COMPUTER 88 LIMITED: Winding-up order
-------------------------------------
A winding-up order notice is hereby given that Computer 88
Limited is undergoing a companies winding-up proceedings
(No 679 of 1998) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is October 29, 1998. The date of presentation of
petition was September 23, 1998.    


COLOUR PROFIT TRADING: Winding-up order
---------------------------------------
A winding-up order notice is hereby given that Colour
Profit Trading Limited is undergoing a companies winding-up
proceedings (No 684 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is October 29, 1998. The date of
presentation of petition was September 24, 1998.    


GUANGDONG INTERNATIONAL: S&P seeks info on creditor banks
---------------------------------------------------------
According to the SCMP, Standard & Poor's has urged Beijing
to make an official policy statement clarifying how
creditor banks of collapsed Gitic will be treated.


GUANGDONG INTERNATIONAL: Beijing bans securities trading
--------------------------------------------------------
Beijing plans to bar its troubled International Trust and
Investment Corporations (Itics) from securities trading,
the major source of income for many of the debt-ridden
firms, industry sources and officials said yesterday. The
ban, part of an industry reorganization after last month's
collapse of the Guangdong International Trust and
Investment Corp. (Gitic), could be announced as early as
this year, the sources said.

It is widely believed the government will prune to just a
few dozen the current 240 Itics, through merger and
bankruptcies. The sources said the ban would affect smaller
Itics, whose brokerage operations had provided the cash
flow to keep them afloat despite growing losses from
investments in property and industry. The move is part of a
wider effort to redefine the business scope of Itics.

Other rules were likely to limit the foreign exchange
business of Itics, the sources said. The complete package
of measures would be included in a long-delayed trust law
expected to be promulgated next year, the sources added.  


GUOCO GROUP: Shares rise on takeover rumors
-------------------------------------------
Guoco Group's shares rose yesterday on buying fuelled by a
wide gap between the stock's trading price and its net
asset value (NAV) per share, brokers said. They said buying
interest was aided by renewed speculation that the
company's parent, Hong Leong Group, might make a full
takeover offer for Guoco. A local sales manager said there
is a wide gap between its NAV of about 20% per share and
the current trading price, and that implies room on the
upside.


GZITIC HUALING: Announcement on shareholding
--------------------------------------------
According to information provided to GZITIC Hualing
Holdings Limited by Guangzhou International Trust and
Investment Corporation, GZITIC and its subsidiaries (except
for the group), as at the date hereof, beneficially own
670,076,808 shares in the Company, representing
approximately 57.89% of the issued share capital of the
Company. Out of that shareholding, 590,076,808 shares
(representing approximately 88% of all the shares held by
the GZITIC Group) are mortgaged as securities for certain
loan made to the GZITIC Group (not being the loan in
relation to which there has been a delay in repayment by
GZITIC, as reported in various press reports).

The GZITIC Group has provided three guarantees as
securities in relation to three loan facility of the Group,
two of which are in Renminbi, amounting to RMB72,200,000,
and one of which is in US Dollar amounting to US$3,000,000.
There is no guarantee or security given by the Group to any
third party in respect of obligations of the GZITIC Group.

At the beginning of this year the Group has obtained a loan
from Guangzhou Finance Company Limited, a member of the
GZITIC Group, in an amount of HK$11,000,000 at an interest
of Hong Kong dollar prime rate. On 9th July, 1998, an
amount of approximately HK$4,670,000 in relation to such
loan has been repaid. There is no loan made by the Group to
the GZITIC Group. In April 1998, GZITIC issued a letter to
the Company which contained, inter alia, a commitment to
provide the necessary level of financial support to the
Company to enable it to pay its debts as they become due
for a period ending on 30th April, 1999.

The Company has applied to The Stock Exchange of Hong Kong
Limited for the trading in the shares and warrants of the
Company to be suspended since 10:00 a.m. on 15th October,
1998. The Company has applied to the Stock Exchange for
resumption of the trading and it is expected that the
trading will resume at 10:00 a.m. on 5th November, 1998.


HOPEWELL HOLDINGS: Cancellation won't affect investment
-------------------------------------------------------
The Thai government said yesterday that its cancellation of
a US$3.2 billion elevated road and rail contract awarded to
Hong Kong-based Hopewell Holdings would not affect foreign
investment in the country. Hopewell is seeking compensation
of some 100 billion baht for the cancellation and on
Tuesday warned that the fallout would damage reputation as
an investment destination. Hopewell ordered off the project
in January after the government suspended work citing
delays and cost overruns, said it will press its case
against the government outside Thailand.


HWA KEE PILING & CONSTRUCTION: Winding-up order
-----------------------------------------------
A winding-up order notice is hereby given that Hwa Kee
Piling & Construction Company Limited is undergoing a
companies winding-up proceedings (No 682 of 1998) in the
High Court of the Hong Kong Special Administrative Region
court of first instance. The date of order is October 29,
1998. The date of presentation of petition was September
23, 1998.    


KPS VIDEO: Receivers move in as video chain KPS closes
------------------------------------------------------
According to the SCMP, video chain KPS was placed in
receivership last night. Accountancy firm Ernst & Young
took over the company's management and possession of the 38
stores and assets and said the best possible outcome would
be to sell the business as a going concern.

KPS said it had tried for the past two months to find a
buyer or strategic investor but had failed. Director of KPS
shareholder Dennis Smith said a ban on parallel imports, as
well as the economic crisis and the coupon saga had
contributed to the collapse. He said a major corporation
close to making an agreement with the company pulled out
last week, a decision which he believed was related to
concerns associated with the ruling made against KPS by the
Small Claims Tribunal on Oct 23.

After weeks of speculation about its financial health, the
company announced on June 22 it was switching to a cash
rental system but would give its 230,000 customers until
November 20 to redeem coupons. The firm claims more than
nine  million out of 10 million coupons in circulation
were redeemed. On Oct 23, the Small Claims Tribunal allowed
four KPS customers to be entitled to refunds of $3,040 plus
$500 costs, although it is understood none has received
money. Yesterday it was revealed 800 customers plan to sue
for an estimated $500,000 in the High Court.

According to the Hong Kong Standard, the statement for
receivership was issued by Forrest International, which
represents KPS's shareholder. All KPS outlets will be
closed from today apart from KPS Retail Stores (Taiwan),
which is a separate entity.

A million coupons remain unredeemed. In recent days, KPS
has received a flood of High Court writs, the latest of
which is for $318,779 in outstanding rent and service
charges for a shop space in Aberdeen Centre.


OPTIMA (HK) LIMITED: In creditors' voluntary liquidation
--------------------------------------------------------
Notice is hereby given that the creditors of Optima (HK)
Limited (in creditors' voluntary liquidation) are required
on or before 7th December, 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 15/F., Hutchison House,
10, Harcourt Road, Central, Hong Kong.


PALIBURG HOLDINGS: Paliburg in $600m loan agreement
---------------------------------------------------
According to the SCMP, Paliburg Holdings has confirmed it
has reached an agreement in principle with its top bankers
for a $600 million facility to pay off a floating-rate note
due at midnight last night.

Banking sources said Hongkong Bank, Hang Seng Bank and the
Bank of China have extended short-term financing to the
debt-ridden company, which continued efforts to offload
assets during the day to pay off debts estimated at over $6
billion as of last month.

According to the Hong Kong Standard, a banker said Paliburg
pledged a 30 per cent stake in Regal Hotels and its
receivables from the sale of flats as collateral for the
emergency funding. The sources estimated the amount pledged
to amount to $500 million.

HongkongBank and its majority held Hang Seng Bank
contributed a total of $400 million while the balance was
provided by the Bank of China. The three banks had asked
for additional security in the form of an undertaking from
the rest of Paliburg's creditor banks that they will not
take any legal action against Paliburg in future and
maintain the status quo of the group. Yesterday was the
deadline for Paliburg creditor banks' confirmation of the
undertaking and the result is expected to be known today.

A source said Cheung Kong is one of the potential buyers of
Regal Hotels which Paliburg is more interested in selling
as a chain rather than individual hotels. The source said
the group's liquidity problem is not yet over even with the
bridging financing.


PEARL ORIENTAL HOLDINGS: Plans for hotel sale
---------------------------------------------
Pearl Oriental Holdings hopes to raise at least $1 billion
from the sale of a 320-room hotel in Western District. The
sale of the hotel was delayed for a year due to the
property slump, the firm said.


SHINE SOURCES DEVELOPMENT: Winding-up order
-------------------------------------------
A winding-up order notice is hereby given that Shine
Sources Development Limited is undergoing a companies
winding-up proceedings (No 680 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is October 29, 1998. The
date of presentation of petition was September 23, 1998.    


SINOAMERICAN TELECOM: Vying parties warned on tactics
-----------------------------------------------------
According to the SCMP, an appeal judge yesterday told
counsel representing provisional liquidators and creditors
vying to dissolve the insolvent company that the court's
time had been hijacked by false claims of urgency.

On two occasions, judges were asked to make orders out of
court time, once at a restaurant and on another occasion an
urgent request to see the judge was made by provisional
liquidators Ferrier Hodgson & Marfan and an order was
arranged out of court time for a loan of US$6 million
to be authorised to finance one of Sinoamerican's joint
ventures.

Yesterday, counsel for creditor Dragon Investment, which is
owed $10 million by Sinoamerican, tried to quash a previous
decision to adjourn the winding-up petition. This was
thrown out by the Court of Appeal. The next hearing for the
winding up petition will be on Nov 19.


SOUTH BOSS RESOURCES LIMITED: Winding-up petition
-------------------------------------------------
Notice is hereby given that a petition for the winding-up
of South Boss Resources Limited by the High Court of Hong
Kong was, on the 21st day of October, 1998, presented to
the said Court by Thakral Corporation (HK) Limited and the
petition is heard on 2nd of December, 1998. Other creditors
who support or oppose the making of the order may appear at
the time of the hearing.  


=========
J A P A N  
=========

ALL NIPPON AIRWAYS: Announces work force cuts
---------------------------------------------
All Nippon Airways said yesterday it planned to cut its
work force by 700 in the three years to March 2001. ANA
would increase the scale of the cut due to poor sales and
falling air fares, a spokesman said. The reductions would
be carried out through natural attrition, early retirement
and curbs on recruitment. ANA expected its labour costs in
2000/1 to be 13 billion yen lower than 1998/9.


JAPAN LEASING: Goldman Sachs helps seek receiver
------------------------------------------------
Nikkei News reports Goldman Sachs & Co. has been acting as
mediator to search for a receiver for failed Japan Leasing
Corp., The Nihon Keizai Shimbun learned Thursday. It is
unprecedented for a foreign financial institution to play
such a role. The U.S. company has apparently been selected
because its experience in the merger and acquisition
business should enable a receiver to be chosen swiftly,
said an official at a major Japanese bank.

Goldman Sachs is sending letters to Japanese and foreign
financial institutions to sound out whether they are
willing to act as receiver. Several companies appear to
have shown interest, industry sources said. The leasing
affiliate of Long-Term Credit Bank of Japan went bankrupt
at the end of September with 2.2 trillion yen in debts, the
largest postwar bankruptcy.

The company's failure was attributed to huge bad loans in
the real estate sector. Its core leasing business remained
in good shape. The U.S. company appears to be attracted by
the commissions it will earn from seeking out a suitable
receiver.


LONG TERM CREDIT: FSA chief says LTCB should stay
-------------------------------------------------
Kyodo News reports the head of the Financial Supervisory
Agency (FSA) said Thursday the failed and nationalized
Long-Term Credit Bank of Japan (LTCB) should not be
dissolved but transferred to a healthy bank. The
dissolution of LTCB, which would lower the value of assets
held by it, should be avoided in order to curb the
injection of public funds into the bank, FSA Commissioner
Masaharu Hino said during an interview with Kyoto News.

LTCB began operating as a nationalized bank under new
management Wednesday in the first step toward disposing of
its bad loans under banking legislation passed by the Diet
last month.

With regard to LTCB's loans that may become nonperforming,
Hino said the new LTCB should consider them on a case-by-
case basis and, if necessary, continue lending to borrowers
in order to meet its public responsibility.


MITSUBISHI MOTORS: To close some domestic production lines
----------------------------------------------------------
Japan's Mitsubishi Motors Corp. will close some domestic
production lines as part of its restructuring plans,
according to a newspaper report which has lifted the car-
maker's stock price. Mitsubishi Motors will shut down some
production lines at three plants by March 2000 and will
sell off part of the plants, the Mainchi Shimbun said.
Mitsubishi Motors is expected to announce a full
restructuring plan today when the company reports its
earnings for the six months to September.


MITSUBISHI MOTORS: To lay off 1,000 at U.S. subsidiaries
--------------------------------------------------------
The Associated Press reports Mitsubishi Motors Corp. is
cutting nearly 20 percent of its work force in Illinois and
California and 30 percent in Thailand, will close two
factories in Japan and is reducing production in an effort
to return to profitability. Mitsubishi will eliminate 1,000
jobs at subsidiaries in Illinois and California, or about
19.6 percent of its work force of 5,100. It will cut 700
jobs at its Mitsubishi Motor Manufacturing of America plant
in Illinois, which makes the Galant, Eclipse and Eclipse
Spider convertible models. Three hundred jobs, or 25
percent of the employees at Mitsubishi Motor Sales of
America in California, will also be cut.


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

CHUNGBANG CO: Applies for workout program
-----------------------------------------
The Korean language Maeil Kyungje reports the Chungbang
Company has applied for a workout program with its major
creditor, the Cho Hung Bank. Cho Hung will hold a
creditor's meeting on November 14th to decide whether
or not to accept this application or not.


CHUNGNAM SPINNING: Applies for workout program
----------------------------------------------
The Korean language Maeil Kyungje reports Chungnam Spinning
Co. has applied for a workout program with its major
creditor, the Cho Hung Bank. Cho Hung will hold a
creditor's meeting on November 14th to decide whether
or not to accept this application or not.


ILSHIN MACHINE: Starts creditor reconciliation procedure
--------------------------------------------------------
The Pusan District Court has advertised in the Korean
language Maeil Kyungje that the Ilshin Machine Industry
Company has started it creditor reconciliation procedure.  
Creditors have until December 30 to file their claims. The
company's address is 940-4 Yerim-ri, Chungkwan-myun,
Kijang-gun, Pusan. The president is Mr. Kim Byung-muk.


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

INTEGRATED SEMICONDUCTOR: Voluntary winding-up
----------------------------------------------
The members of Integrated Semiconductor Technology
(Malaysia) Sdn Bhd on 4/11/98 resolved to wind-up the
company voluntarily. Creditors are requested to submit
their claims before 5/12/98.


KEMAJUAN FLORA SDN BHD: Winding-up petition
-------------------------------------------
Public Bank Bhd on 15/9/98 petitioned for the winding-up of
Kemajuan Flora Sdn Bhd. The petition is directed to be
heard on 27/1/99.


MALAYSIA BRITISH ASSURANCE BHD (MBA): Loss for 17 months
--------------------------------------------------------
MBA, listed on the KLSE, posted a group pre-tax loss of
RM28.9mil for the 17months ended 30/6/98, compared to a
pre-tax profit of RM24.9mil for the year to 31/1/97. The
drop at company level amounting to RM99.7mil reflected
lower underwriting margin resulting from a drop in premium
rates and higher claims inevitable during an economic
downturn.


METRO JELITA SDN BHD: Winding-up petition
-----------------------------------------
Invescor Ventures Sdn Bhd on 28/7/98 petitioned for the
winding-up of Metro Jelita Sdn Bhd. The petition is
directed to be heard on 27/11/98.


REKAPACIFIC: Troubled group to fend off closure
-----------------------------------------------
According to the SCMP, Rekapacific, one of Malaysia's
biggest diversified investment groups, said RHB Equities
was seeking to close it down for an alleged failure to
repay M$374.7 million in debt. Rekapacific will resist the
petition.

Rekapacific is controlled by Ling Kee Liong, son of
Malaysia's Transport Minister Ling Liong Sik. It owns
myriad businesses from engineering and construction to
plantations. The company said it was conducting its own
investigation with the help of professional advisers and
would file a report with various statutory bodies including
the commercial crimes division of the police.

RHB Equities, which provides share financing, is part of
banking and brokerage group Rashid Hussain, owned by a
tycoon of the same name, which is a key financier for the
younger Mr Ling.

In December 1996, Mr Ling, 29, paid about $500 million for
a 32 per cent stake in Rekapacific which was called Berjaya
Industrial at that time. Rekapacific posted a loss of $37.7
million for the six months ended Oct 31 last year and has
not reported results since then.


WASTECARE (PENANG) SDN BHD: Voluntary winding-up
------------------------------------------------
The members of Wastecare (Penang) Sdn Bhd on 2/11/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 7/12/98.


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

PHILIPPINE AIRLINES: PAL ready to give control to Cathay
--------------------------------------------------------
According to the SCMP, a Philippine Airlines spokesman said
PAL is ready to concede management control to Cathay in
return for a significant but unspecified injection of cash.

Sources inside Cathay said the company was still awaiting
the Philippine government's approval before discussions can
proceed on financial and practical aspects of the deal.
Cathay Pacific's general manager of public affairs, Andrew
Herdman, said talks were still on going and it would take
some time to reach any form of definitive position.

Aviation sector analysts said receiving approval should not
be difficult.

President of PAL's gound crew union, Alexander Barrientos,
said he was told by management that Cathay Pacific wants to
appoint PAL's president, chief operating officer, chief
executive officer, chief finance officer and head of
marketing.

Union leader Abel Capili said employees were planning a
protest today because of fears of massive lay-offs and
reduced benefits. PAL senior vice president Manolo Aquino
said the airline and the union were continuing talks on a
memorandum of agreement and dismissed the fears of mass
layoffs.

According to the Hong Kong Standard, Cathay Pacific Airways
would form a consortium with the American Insurance Group
(AIG) and a Filipino company to acquire up to 50 per cent
stake in PAL, with Cathay taking up 40 per cent and the
remaining taken up by the other two.

A senior PAL executive said the Filipino company was not
engaged in the airline business but had business relations
with Cathay. AIG president and managing director in Hong
Kong Cesar Zalamea, used to occupy various senior posts in
the Philippine government, including chairman of the
Development Bank of the Philippines and is said to be able
to identify investment opportunities for AIG in undervalued
assets in the Philippines.

Philippine Finance Secretary Edgardo Espiritu said
discussions between Cathay and PAL were almost 90 per cent
completed.


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

CAM INTERNATIONAL: To sell stake in Cam Agro-Innovation
-------------------------------------------------------
Singapore Business Times reports Cam International Holdings
yesterday said it is selling its entire stake in Cam Agro-
Innovation (S) Pte Ltd (CAI) for $3.98 million to
individual investor Chao Tze-Yun. The move is part of its
strategy to streamline its businesses, following the
regional economic downturn. Cam's stake comprises 4.82
million shares, or 80.33 per cent of CAI's total issued
share capital. The sale and purchase agreement was arrived
at on a willing-buyer-willing-seller basis, the company
said. The shares will be transferred into a company which
will be incorporated here by the buyer.

Cam said it is streamlining its businesses to concentrate
on its core component and contract manufacturing. Proceeds
from the sale will fund the working capital requirements of
the group's core businesses.

Extraordinary losses of some $1.3 million will be provided
for in the FY98 results ended September even though the
sale will be completed in FY99, said Cam directors. The
share sale will reduce the group's net tangible assets per
share from 5.97 cents to 5.43 cents for FY97.


KAY HIAN: Lays off support staff
--------------------------------
Kay Hian, a Singapore stock brokerage, fired 16 back office
employees, or 11 % of its trading support staff, blaming
Asia's economic chill and the end of trading of Malaysian
Stocks. Singapore brokerages were badly hurt when Malaysia
imposed capital controls on September 1, ending the trading
of shares of Malaysian companies in Singapore and forcing
the closure of over-the-counter trading. Fired employees
were given a day's notice on Friday and paid a month's
compensation for every year served with the company.


KEPPEL CORP: Announces major cuts and mergers
---------------------------------------------
Keppel Corp., one of Singapore's largest conglomerates,
announced plans to slash costs and merge or sell about 50
of its 600 units to recover from "quite a big loss" this
year and from woes rooted in rapid expansion.

Sim Kee Boon, chairman of state-linked Keppel, said fallout
from Asia's financial crisis requires the group to carry
out "severe" cost-cutting measures aimed at saving S$100
million a year, or about 12% of its overhead.

The plan includes cutting the work force of 9000 by 10%,
wage cuts for directors and managers as well as a wage
freeze for remaining employees. The chairman said the group
will sell, close or merge 50 units in non core businesses,
including ventures in the US to make pleasure craft and a
helicopter service in Arizona.

One part of the restructuring plan is to merge two listed
companies. oil-rig builder Keppel FELS and Keppel
Integrated Engineering. Executives also confirmed that the
group is studying a tie-up for Keppel Bank, which is in the
process of merging with Tat Lee Bank or possibly with
Development Bank of Singapore.

Another part of Keppel's restructuring will be to unwind
its complex cross-shareholdings in which some group units
own shares in other units. Mr Sim said the unwinding may
take two to three years. Mr Sim acknowledged that the group
will suffer "quite a big loss" this year, though he
declined to estimate the size. He said the loss was in
large part from write-downs of hundreds of millions of
Singapore dollars on the value of assets held by Keppel
Land, the group's listed property company.


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

ALPHATEC ELECTRONICS: Files restructuring plan
----------------------------------------------
Representatives from PriceWaterhouseCoopers filed a
restructuring plan for Alphatec Electronics PCL, a low-end
computer chip assembler and Thailand's first company to
test the new bankruptcy laws written earlier this year.

Under the plan, Alphatec will receive a cash infusion from
a strategic equity investor, and creditors will agree to
write-off a substantial portion of their debt in return for
an equity stake in the company.

In order for Alphatec to emerge from bankruptcy, 75% of the
company's creditors will have to agree to the plan.
Alphatec owes creditors about $375 million in past due
credit. They will asked to write off 80% to 90% of that
debt, in return for about a 20% stake in the company, in
addition to options for additional cash if the company
meets long-term performance targets.

A meeting will be held in November or early December.

If creditors reject the plan, the company will be set down
a course toward liquidation that might not yield much for
creditors since Alphatec's equipment tends to depreciate
rapidly in the chip-assembly business.

Mr Perrins, director of corporate finance and restructuring
at PriceWaterhouseCoopers said there is an element of
urgency to getting the plan approved because the global
downturn in the chip market has dried up business for
Alphatec and the company is in need of working capital as
well as the new equity.   


MANAGER MEDIA GROUP: No objections to restructuring plan
--------------------------------------------------------
The Bangkok Post reports prospects have improved for media
mogul Sondhi Limthongkul to revive his Manager Media Group,
after no objections were filed against his petition under
the new bankruptcy law. The company and its two major
creditors, Thai Military Bank and Thai Farmers Bank, last
month requested Civil Court approval to negotiate a
business rehabilitation plan. A preliminary hearing is
scheduled for today.

Suvarn Valaisathien, a legal expert, said the law required
petitions against the proposal to be filed at least three
days ahead of the scheduled hearing. If there were no
objections, he said, creditors and other affected parties
were presumed to have agreed that there was a possibility
for reviving the business, thus enabling it to repay debts.

Manager had the consent of both banks to file the original
petition. It owes the two banks 644.58 million baht. Mr
Sondhi, contacted yesterday, said it was inappropriate for
him to comment at the moment.

However, he told a shareholders' meeting on October 28 that
the economic slump had resulted in operating losses and a
shortage of revolving capital. As a result, he said, the
group could not repay debts on schedule despite having
slashed costs.

Manager has appointed Marutach Rattanaprarom as managing
director, along with Seri Manop Co and Pipat and Associates
Co to carry out the rehabilitation plan.

Even if the court approves Manager's proposal, Mr Suvarn
cautioned that the rehabilitation plan should be carried
out to meet the interests of all parties concerned. If
creditors saw disadvantages in the plan, they would
probably file petitions against the proposal.

Manager Media Group lost 1.7 billion baht last year,
compared with a profit of 1.7 billion baht in 1996. It
reported a first-half loss this year of 363.26 million
baht.


S U B S C R I P T I O N   I N F O R M A T I O N

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