TCRAP_Public/981111.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      

      Wednesday, November 11, 1998, Vol. 1, No. 184

                    Headlines


* C H I N A   &   H O N G   K O N G *

GITIC HK: Gitic unit payout 6.6 pc
GUANGXIN ENTERPRISES: Gitic unit payout 6.6 pc
KWONG ON BANK: Dao Heng shows cautious interest
LAI SUN DEVELOPMENT: Attempt to reduce gearing fails
QPL INTERNATIONAL: Subsidiary has cash-flow problems


* I N D O N E S I A *

PT INDOMOBIL: Part of Indomobil's foreign debt rolled over


* J A P A N *

HOKKAIDO TAKUSHOKU: Failed bank pays retirement allowances
KOMATSU: To close 3 plants, reduce machinery production
LONG TERM CREDIT: FSA to reassess LTCB assets
SHISEIDO: Results announcement


* K O R E A *

CHO HUNG BANK: Cho Hung aid depends on deal
HANHAP INDUSTRY: Liquidation notice
SAMSUNG ELECTRONICS: Repays US$1 billion of foreign debt


* M A L A Y S I A *

DULCINEA SDN BHD: Winding-up petition
PROMET BHD: Adds to Ipco's woes
PROTON BHD: Petronas still in talks for Hicom's stake
REKAPACIFIC BHD: Winding-up petition
SELOGA HOLDINGS BHD: Results - 31/7/98

SEQUEL (MALAYSIA) SDN BHD: Voluntary winding-up
TRONOH MINES MALAYSIA BHD: Results - 31/7/98
UNIPHONE TELECOMMUNICATIONS BHD: Results - 31/7/98
WING TIEK HOLDINGS BHD: Results - 31/7/98


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

PHILIPPINE AIRLINES: PAL eases cash demand for rescue


* S I N G A P O R E *

GOLDTRON: Troubled companies start to default on loans
IPCO INTERNATIONAL: Seeking interested parties
KAY HIAN HOLDINGS: Wee sells substantial stake
LIM KAH NGAM: Troubled companies start to default on loans
SINGAPORE AIRLINES: Results announcement

URACO HOLDINGS: To issue additional shares to Citicorp
VAN DER HORST: Troubled companies start to default on loans


* T H A I L A N D *

AYUDHYA INVESTMENT: GE Capital interested in securities arm


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

GITIC HK: Gitic unit payout 6.6 pc
----------------------------------
According to the SCMP, liquidators KPMG Peat Marwick
revealed yesterday after the first creditors meeting of
Gitic HK and one of the Hong Kong arms, Guangxin
Enterprises, that creditors may recover as little as 6.6
per cent of their money. The 2 firms have combined
unsecured liabilities of $6.9 billion. Creditors of Gitic
HK would recover about 54 per cent. Guangxin Enterprises
has book assets of $3.9 billion but realisable assets of
only $250 million. It has unsecured debts of $3.7 billion
and contingent liabilities of another $500 million.

The liquidator said Guangxin Enterprises and Gitic HK's
realisable assets were small because of uncertainties over
their accounts receivables and mainland projects. Guangxin
Enterprises assets included property investment and
infrastructure projects. Its mainland assets include
offices, hotels and shopping arcades.

Gitic HK, which owns 58 per cent of listed Gitic
Enterprises, has book assets of $3.6 billion, of which only
$2.1 billion is expected to be realisable. The company has
unsecured debts of $3.2 billion and contingent liabilities
of $500 million. It also has another $280 million in
contingent liabilities which have not been claimed. A KPMG
partner said Gitic HK's mainland assets included roads and
power plants. Parent Gitic was the largest creditor of both
firms, owed $650 million by Guangxin Enterprises and $800
million by Gitic HK.

Each company has about 50 creditors and creditors of both
companies have formed inspection committees. Members of
Guangxin Enterprises are from GE Capital, China Merchants
Bank, Bank of East Asia, Standard Chartered Bank and Gitic.
The Gitic HK inspection committee includes representatives
form the Bank of East Asia, China Merchants Bank, CCIC
Finance, Dai-Ichi Kangyo Bank and parent Gitic.

There is mounting speculation that Beijing will designate a
mainland firm to acquire Gitic HK's interest in Gitic
Enterprises.

The KPMG partner said the only preferential creditors were
employees, who had claimed about $200,000 each from
Guangxin Enterprises and Gitic HK. He said those who had
secured "letters of comfort" from Gitic for lending to the
Hong Kong subsidiaries would be treated as ordinary
creditors. It is understood that most loans extended to
Gitic HK were supported by letters of comfort that were not
legally binding instead of guarantees because local
governments have been banned by Beijing from acting as
guarantors in recent years. Bankers would usually not take
mortgages because mainland law was imperfect and because of
execution and valuation issues. Some bankers were prepared
to make provisions while others were hopeful that the
People's Bank of China or the mainland government would
fill the shortfall.

The Hong Kong Standard also reported on the figures
concerning the debts, assets and liabilities of Guangxin
Enterprises and Gitic HK. However it said that Gitic HK had
realisable assets worth $2.2 billion.

The paper also said that some of the biggest lenders to
Gitic are the Japanese bank Daichi Kangyo Bank, which lent
about US$61.27 million, German bank Dresdner Bank, which
lent about US$60.75 million and Bank of China, with about
US$51.57 million in loans.

A US banker said the major asset of Gitic HK is its
controlling stake in Gitic Enterprises, a marble and
granite importer whose shares have been suspended from
trading in Hong Kong. KPMG partner said Gitic Enterprises
is not a candidate for liquidation though the accountants
need to find a buyer for Gitic Hong Kong's stake in the
company. Bankers have estimated Gitic's total debts could
be US$2 billion.


GUANGXIN ENTERPRISES: Gitic unit payout 6.6 pc
----------------------------------------------
According to the SCMP, liquidators KPMG Peat Marwick
revealed yesterday after the first creditors meeting of
Gitic HK and one of the Hong Kong arms, Guangxin
Enterprises, that creditors may recover as little as 6.6
per cent of their money. The 2 firms have combined
unsecured liabilities of $6.9 billion. Creditors of Gitic
HK would recover about 54 per cent. Guangxin Enterprises
has book assets of $3.9 billion but realisable assets of
only $250 million. It has unsecured debts of $3.7 billion
and contingent liabilities of another $500 million.

The liquidator said Guangxin Enterprises and Gitic HK's
realisable assets were small because of uncertainties over
their accounts receivables and mainland projects. Guangxin
Enterprises assets included property investment and
infrastructure projects. Its mainland assets include
offices, hotels and shopping arcades.

Gitic HK, which owns 58 per cent of listed Gitic
Enterprises, has book assets of $3.6 billion, of which only
$2.1 billion is expected to be realisable. The company has
unsecured debts of $3.2 billion and contingent liabilities
of $500 million. It also has another $280 million in
contingent liabilities which have not been claimed. A KPMG
partner said Gitic HK's mainland assets included roads and
power plants. Parent Gitic was the largest creditor of both
firms, owed $650 million by Guangxin Enterprises and $800
million by Gitic HK.

Each company has about 50 creditors and creditors of both
companies have formed inspection committees. Members of
Guangxin Enterprises are from GE Capital, China Merchants
Bank, Bank of East Asia, Standard Chartered Bank and Gitic.
The Gitic HK inspection committee includes representatives
form the Bank of East Asia, China Merchants Bank, CCIC
Finance, Dai-Ichi Kangyo Bank and parent Gitic.

There is mounting speculation that Beijing will designate a
mainland firm to acquire Gitic HK's interest in Gitic
Enterprises.

The KPMG partner said the only preferential creditors were
employees, who had claimed about $200,000 each from
Guangxin Enterprises and Gitic HK. He said those who had
secured "letters of comfort" from Gitic for lending to the
Hong Kong subsidiaries would be treated as ordinary
creditors. It is understood that most loans extended to
Gitic HK were supported by letters of comfort that were not
legally binding instead of guarantees because local
governments have been banned by Beijing from acting as
guarantors in recent years. Bankers would usually not take
mortgages because mainland law was imperfect and because of
execution and valuation issues. Some bankers were prepared
to make provisions while others were hopeful that the
People's Bank of China or the mainland government would
fill the shortfall.


KWONG ON BANK: Dao Heng shows cautious interest
-----------------------------------------------
Dao Heng Bank is interested in acquiring an interest in
Kwong On Bank but says it has not yet been invited to the
due diligence stage. At the request of the companies,
trading of shares in Dao Heng and parent Guoco Group was
suspended for the morning session yesterday and resumed in
the afternoon. It said discussions with an investment bank
acting on behalf of Kwong On Bank's controlling shareholder
Fuji Bank were very preliminary.

A market source said other banks might be studying Fuji
Bank's offer for its 50.1% interest in Kwong On. Dao Heng
said it had received no invitation to proceed to the due
diligence stage, a prerequisite to a possible acquisition.

Analysts believed pricing would be the single most
important factor determining the success of the potential
acquisition. Kwong On's loan to deposit ratio after
adjusting for outstanding certificates of deposit stood at
88.4% as of June 30.


LAI SUN DEVELOPMENT: Attempt to reduce gearing fails
----------------------------------------------------
Lai Sun Development's latest attempt to reduce its gearing
with the sale of two office towers at Crocodile House in
Central has failed. Analysts said the unsuccessful sale
would slow the developer's plans to reduce its high
gearing, estimated at close to 50%. They predicted the
developer, controlled by the family of chairman Lim Poryen,
would continue to sell other assets to cut debt. CY Leung &
Co. director Tony Lo said the developer had not sold the
two buildings after the public tender closed on October 16.  

The developer was in talks with two potential buyers aimed
at raising the offer prices. Crocodile House One and Two
together comprise a total area of 130025 square feet on a
7800sq ft combined site on Connaught Road. Tai Fook
Securities investment analyst Eddie Tam said the sale would
be worth more than $500 million and would cut Lai Sun's
gearing 7% to an estimated 40%.

The developer would continue to dispose of other quality
assets such as its two phase commercial project Causeway
Bay Plaza in a bid to lower debt he said. He forecast Lai
Sun's full year earnings would be $627 million, which
included a $400 million exceptional gain from the recent
investment asset value.


QPL INTERNATIONAL: Subsidiary has cash-flow problems
----------------------------------------------------
The stock price of QPL International Holdings fell sharply
yesterday, closing sharply yesterday, closing at a six-
month low after it announced that one of its subsidiaries
was having a cash-flow problem. The company's share price
fell by 14.8% or 12 cents to close at 69 cents.

QPL said it had completed reviewing its financing
arrangements on Friday. It said one of its British-based
subsidiaries, Newport Wafer-Fab Ltd has experienced severe
cash-flow difficulties though it has been able to continue
operating. In late October, QPL said it had negotiated for
possible disposal of certain factory premises owned by one
of its British subsidiaries which principally engaged in
the manufacture of silicon wafers. But negotiations were
later terminated due to unsatisfactory terms of sales.

QPL said its total actual and contingent liabilities were
estimated at $3.2 billion-about half of QPL's gross assets.
The company's assets stood at about $6.4 billion at the end
of April this year, it said. QPL also said it has
guaranteed the liabilities of NWF to the extent of about
$1.2 billion even if the total net asset of NWF, at the end
of April this year, was only $530 million, or 20% of QPL's
total net assets. For the year to April 30, net current
liabilities increased sharply to $561.6 million, compared
with $225 million for the same period last year.  


=================
I N D O N E S I A
=================

PT INDOMOBIL: Part of Indomobil's foreign debt rolled over
----------------------------------------------------------
The Asian Wall Street Journal reported that the PT
Indomobil Suksus International has managed to get $120
million of its $450 million offshore debt rolled over. PT
Indomobil is the automotive arm of the Salim Group. The
Salim Group recently offered to turn over 70 to 75 percent
its Indomobil shares to the government as part of an
agreement to repay liquidity that was extended to Salim's
PT Bank Central Asia earlier this year. A statement by the
Indomobil Finance & Administration Managing Director
indicated that this change in majority ownership should not
effect re-negotiations with creditors or joint venture
partners.


=========
J A P A N  
=========

HOKKAIDO TAKUSHOKU: Failed bank pays retirement allowances
----------------------------------------------------------
Nikkei News reports defunct Hokkaido Takushoku Bank, which
is scheduled to terminate operations Friday, will pay all
employees their retirement/severance allowances as
originally stipulated, company sources said Monday. The
payouts will total about 11.5 billion yen. Public funds
will be made available, allowing Hokkaido Takushoku to pay
retirement allowances despite having liabilities sharply in
excess of its assets. Deposit Insurance Corp. agreed to
allow the bank to pay full compensation using public funds
after the bank decided not to add premiums to the payouts.

Hanwa Bank, which went under at the end of 1996, paid a
total of 11.4 billion yen in retirement allowances, well
above the 2.9 billion yen that was to be paid under the
bank's original terms. Hanwa decided to add a premium to
its compensation payments when no bank stepped forward to
take over its operations and much of its staff was forced
to look for new jobs. In contrast, most Hokkaido Takushoku
Bank employees are scheduled to move to North Pacific Bank
and Chuo Trust & Banking Co.


KOMATSU: To close 3 plants, reduce machinery production
-------------------------------------------------------
Nikkei News reports Komatsu Ltd. announced restructuring
plans Monday that include closing three domestic group
plants and reducing construction machinery production
capacity 20% by September 2000. The construction giant also
plans to buy a majority stake in affiliate Komatsu Zenoah
Co. and to acquire two unlisted construction machinery
production subsidiaries. Komatsu as of Monday owned 30.4%
of the issued shares in the chain saw maker, which is
listed on the first section of the Tokyo Stock Exchange,
but will raise its stake to 50.9% by the end of the month.

Komatsu will also downsize its silicon wafer operations,
which had been the centerpiece of its diversification
plans. Komatsu Electronic Metals Co., which currently
handles these operations, will vastly reduce its capital
investment. The firm will close its Tachikawa plant in
Higashi-Yamato, Tokyo, a plant in Saitama Prefecture and
another in Tochigi Prefecture. Slumping demand prompted
Komatsu to reduce the number of its domestic construction
machinery-related plants to six from nine.

Komatsu recorded a consolidated net loss of 1.1 billion yen
for the fiscal half ended Sept. 30, as opposed to the 8.8-
billion-yen profit from a year earlier. Consolidated sales
came to 529.8 billion yen, a gain of 2%. Domestic
construction-equipment sales were down, but strong sales to
Europe and the U.S. made up for the gap, resulting in an 8%
gain for the division. But the electronics division saw
sales drop 5%.

For the full fiscal year ending March 1999, Komatsu sees a
consolidated net profit of 1 billion yen, down 95%.


LONG TERM CREDIT: FSA to reassess LTCB assets
---------------------------------------------
Nikkei News reports the Financial Supervisory Agency will
assess for the second time the assets of the failed Long-
Term Credit Bank of Japan, which is now under state
control, to determine the price at which the government
will buy LTCB shares, The Nihon Keizai Shimbun learned
Saturday. Because the government believes LTCB's
liabilities exceed its assets, the purchase price will
likely be zero, government sources said.

The reassessment is primarily aimed at enabling the
government to explain to shareholders the grounds for
deciding the share price. The reassessment is unlikely to
be prolonged because an earlier audit by the FSA already
revealed most of the financial condition of LTCB, the
sources said. The share purchase price is expected to be
decided in December following the reassessment, the sources
added.

Meanwhile, Kyodo News reports the government plans to use
public funds to cover shortages in provisions for problem
loans held by the nationalized Long-Term Credit Bank of
Japan (LTCB) to enable the smooth transfer of operations
to another bank, government sources said Monday. The plan
is aimed at avoiding placing a financial burden on the bank
that will take over LTCB's operations, the sources said.


SHISEIDO: Results announcement
------------------------------
According to the Financial Times, Shiseido, Japan's leading
cosmetics and toiletries group, pushed back its targets for
overseas expansion and could spin off its accessories and
household goods business into an independent company next
year following a very poor first-half performance. Shiseido
saw net earnings fall 73 per cent, from Y9.4 bn to Y2.57bn
for the six months to September. It said the growth in
revenues from outside Japan was not enough to offset the
damage from the recession at home.

The group took a Y9.9bn extraordinary loss from the
devaluation of securities holdings, particularly from bank
shares. Although sales slipped 1 per cent overall from
Y310.5bn to Y307.3bn, turnover in Japan slid 4.7 per cent
to Y256.2bn.

The toiletries division and salon businesses fared worst.
Sales of soap, shampoo, and hair lotions tumbled 5.2 per
cent as income fell 9.3 per cent. The newly acquired salon
business lifted sales 22 per cent, but failed to generate a
profit.

Based on a calculation of Y120 to the dollar, the company
expects a 53 per cent decline in full-year profits from
Y16.8bn to Y8bn, on sales flat at Y620bn.


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

CHO HUNG BANK: Cho Hung aid depends on deal
-------------------------------------------
According to the SCMP, South Korea's financial watchdog
yesterday said any government support for the ailing Cho
Hung Bank would depend on its merger with other
institutions and the carrying out of a rescue plan. An
FSC official denied a report it would extend up to 1.8
trillion won in public money to Cho Hung, saying no
specific amount had been set.


HANHAP INDUSTRY: Liquidation notice
-----------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Hanhap Industry Company is
liquidating and will hold a creditor meeting on Dec. 10,
1998. The company's address is 25-2 Yeuido-dong,
Youngdeungpo-gu, Seoul and the representative is Mr. Koh
Byong-chul.


SAMSUNG ELECTRONICS: Repays US$1 billion of foreign debt
--------------------------------------------------------
Samsung Electronics has repaid US$1 billion of its $6.5
billion foreign-currency debt, using partly funds raised
through five domestic bond sales. The world's biggest
memory chip manufacturer sold more than $1 billion of bonds
this year. It spent about $300 million of the proceeds to
repay foreign-debt, with the remaining $700 million coming
from existing savings and recurring profits.

Samsung is taking advantage of falling domestic borrowing
costs and a stronger won to reduce its foreign debt. Three-
year corporate bond yields -- the benchmark long-term
borrowing rate -- and hovering at a record low of 9.1%
compared with 33.1% on December 23 last year. The company
had foreign currency debt of $6.5 billion and debt-to-
equity ratio of 229% at the end of last year. The company
is under pressure to reduce that ratio.     


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

DULCINEA SDN BHD: Winding-up petition
-------------------------------------
Bank Utama (Malaysia) Bhd on 30/10/98 petitioned for the
winding up of Dulcinea Sdn Bhd.


PROMET BHD: Adds to Ipco's woes
-------------------------------
According to the Singapore Business Times, Ipco
International Ltd, a Singapore-based engineering      
company, has been forced to restructure its operations
after its biggest shareholder, debt-laden Promet Bhd of
Malaysia, lost control of the company.

"We are doing some restructuring, looking for any
possibilities" regarding mergers or new partners, said Ipco
chairman Gwee Yow Pin.

Promet, a steel and engineering company, has seen its 74
per cent stake in Ipco whittled down to 36 per cent in the
past 11 weeks as Singapore banks and financial institutions
sold Ipco shares which Promet pledged as collateral for
loans.

Promet's financial problems -- it is in bankruptcy
protection -- have added to Ipco's woes, which range from
US$1 million (S$1.6 million) in debt unpaid by Promet to a
write-off in its African business and slowing business.
More than half of Ipco's business is in Asia and the
balance, in Africa.

Ipco's share price reflects its fortunes, having declined
over 80 per cent since the beginning of the year to 38.5 US
cents. It lost 4.5 US cents in trading yesterday. In the
year ended April 30, Ipco lost $38.7 million, or 0.61 cents
a share, mainly from costs incurred in a Nigerian project.
That was before a one-time charge of $11.97 million, the
bulk of which was a write-off for its Nigerian investments.
There were no comparable figures for the previous
corresponding period as it changed its accounting
procedure.

Ipco told the Stock Exchange of Singapore on Sept 1 that
Promet could not repay a debt of US$1 million. Promet and
three of its units had obtained court protection against
creditors on July 30. Mr Gwee would not say how much Promet
owed in total, only that "we still have no payment from
Promet".


PROTON BHD: Petronas still in talks for Hicom's stake
-----------------------------------------------------
Singapore Business Times says state-owned Petroliam
Nasional (Petronas) is still keen to buy Hicom Holdings' 27
per cent controlling stake in national carmaker Perusahaan
Otomobil Nasional Bhd (Proton), despite a newspaper report
that talks have run into pricing disputes.

Petronas president and chief executive Hassan Marican
yesterday said negotiations were in progress to find a
reasonable and fair valuation of the company based on a
willing-buyer-willing-seller basis.

"We are presently interested in Hicom's interest in Proton
as it is a strategic holding in a national project,"
Bernama quoted Mr Hassan as saying during a press
conference yesterday.

Yesterday, the Asian Wall Street Journal (AWSJ) reported
that Petronas' planned purchase of Proton had hit a snag.
Quoting a senior financial executive close to the
negotiations, the AWSJ reported that Hicom was demanding
"too high a price" from the national oil company.

Based on yesterday's closing price of RM4.10, a 27 per cent
equity or 147 million shares in Proton is worth some 602.7
million Malaysian ringgit (S$260.5 million).

However, Mr Hassan said negotiations were on an "arms
length" basis and as soon as negotiations were finalised
and the common platform had been put in place, an
announcement would be made.


REKAPACIFIC BHD: Winding-up petition
------------------------------------
Arab-Malaysian Finance Bhd on 20/8/98 petitioned for the
winding-up of Rekapacific Bhd (listed on the KLSE). The
petition is directed to be heard on 13/1/99.


SELOGA HOLDINGS BHD: Results - 31/7/98
--------------------------------------
Seloga Holdings Bhd (listed on the KLSE) reported a post-
tax loss of RM27.729mil for the year ended 31/7/98,
compared to a post-tax profit of RM14.690mil previously.
EPS fell 270.7% from RM0.58 to a loss per share of RM0.99.


SEQUEL (MALAYSIA) SDN BHD: Voluntary winding-up
-----------------------------------------------
The members of Sequel (Malaysia) Sdn Bhd on 5/11/98
resolved to wind up the company voluntarily. Creditors are
requested to submit their claims before 9/12/98.


TRONOH MINES MALAYSIA BHD: Results - 31/7/98
--------------------------------------------
Tronoh Mines Malaysia Bhd (listed on the KLSE) reported a
post-tax loss of RM10.357mil for the 6months ended 31/7/98,
compared to a post-tax loss of RM37.996mil previously. Loss
per share improved 64.7% from RM0.61 to RM0.21 during the
same period.


UNIPHONE TELECOMMUNICATIONS BHD: Results - 31/7/98
--------------------------------------------------
Uniphone Telecommunications Bhd (listed on the KLSE)
reported a post-tax loss of RM9.278mil for the 6months
ended 31/7/98, compared to a post-tax profit of RM176.61mil
previously. EPS fell 103% from RM1.29 to a loss per share
of RM0.04 during the same period.


WING TIEK HOLDINGS BHD: Results - 31/7/98
-----------------------------------------
Wing Tiek Holdings Bhd (listed on the KLSE) reported a
113.9% increase in post-tax loss to RM106.498mil for the
year ended 31/7/98, compared to a post-tax loss of
RM49.795mil previously. Loss per share rose 111.6% from
RM0.73 to RM1.54 during the same period.


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

PHILIPPINE AIRLINES: PAL eases cash demand for rescue
-----------------------------------------------------
According to the SCMP, PAL is willing to reduce its cash
demands in order to push through a deal with a foreign
investor and save itself.

Finance Secretary Edgardo Espiritu has said several times
in the past few weeks that PAL needs a six billion peso
capital infusion from a new shareholder. There have been
rumors that Cathay was offering to inject US$75 million to
$100 million in PAL.

A Cathay source said the deal was likely to be worked out.
Mr Espiritu told media in Manila yesterday that Cathay had
demanded the government sell its 14 per cent stake in PAL
if it were to take over the carrier. He also said Cathay
would list PAL's shares once it gained control. He said the
only major sticking point is Cathay's desire of a total
dilution of government equity.


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

GOLDTRON: Troubled companies start to default on loans
------------------------------------------------------
According to the Hong Kong Standard, Van Der Horst, Lim Kah
Ngam and Goldtron, which are a construction and engineering
company, a hotel and real estate developer and a pager and
cellular phone maker, respectively, are among the first
Singapore companies to default on loans. Joining companies
in neighbouring Malaysia and Indonesia, a string of
Singapore companies are failing to repay debts, and the
trend is expected to accelerate with small companies
posting losses as demand falls.

Goldtron said on Friday it would stop paying interest on
its convertible bonds, and dividends on its preference and
ordinary shares as it restructured its debts. The company
said that it would focus on its core businesses.


IPCO INTERNATIONAL: Seeking interested parties
----------------------------------------------
According to the Singapore Business Times, Ipco
International Ltd, a Singapore-based engineering      
company, has been forced to restructure its operations
after its biggest shareholder, debt-laden Promet Bhd of
Malaysia, lost control of the company.

"We are doing some restructuring, looking for any
possibilities" regarding mergers or new partners, said Ipco
chairman Gwee Yow Pin.

Promet, a steel and engineering company, has seen its 74
per cent stake in Ipco whittled down to 36 per cent in the
past 11 weeks as Singapore banks and financial institutions
sold Ipco shares which Promet pledged as collateral for
loans.

Promet's financial problems -- it is in bankruptcy
protection -- have added to Ipco's woes, which range from
US$1 million (S$1.6 million) in debt unpaid by Promet to a
write-off in its African business and slowing business.
More than half of Ipco's business is in Asia and the
balance, in Africa.

Ipco's share price reflects its fortunes, having declined
over 80 per cent since the beginning of the year to 38.5 US
cents. It lost 4.5 US cents in trading yesterday. In the
year ended April 30, Ipco lost $38.7 million, or 0.61 cents
a share, mainly from costs incurred in a Nigerian project.
That was before a one-time charge of $11.97 million, the
bulk of which was a write-off for its Nigerian investments.
There were no comparable figures for the previous
corresponding period as it changed its accounting
procedure.

Ipco told the Stock Exchange of Singapore on Sept 1 that
Promet could not repay a debt of US$1 million. Promet and
three of its units had obtained court protection against
creditors on July 30. Mr Gwee would not say how much Promet
owed in total, only that "we still have no payment from
Promet".


KAY HIAN HOLDINGS: Wee sells substantial stake
----------------------------------------------
Kay Hian Holdings substantial shareholder Wee Ee Chao has
sold 500,000 shares at 76.6 cents a piece. The sale last
Friday pared his stake to 28.4 per cent of Kay Hian's
issued share capital.


LIM KAH NGAM: Troubled companies start to default on loans
----------------------------------------------------------
According to the Hong Kong Standard, Van Der Horst, Lim Kah
Ngam and Goldtron, which are a construction and engineering
company, a hotel and real estate developer and a pager and
cellular phone maker, respectively, are among the first
Singapore companies to default on loans. Joining companies
in neighbouring Malaysia and Indonesia, a string of
Singapore companies are failing to repay debts, and the
trend is expected to accelerate with small companies
posting losses as demand falls.

Lim Kah Ngam last week stopped paying its lenders and said
it needed to sell some assets in order to repay its debts.
The company had a first-half loss of S$89 million, compared
with a profit of S$51,000 a year ago. It has a total debt
of S$479 million as of the end of last year.


SINGAPORE AIRLINES: Results announcement
----------------------------------------
According to the Singapore Business Times, Singapore
Airlines, which saw a 24 per cent drop in interim
group net earnings for the six months to September 1998,
will only retrench staff as a last resort and only after it
has tried everything else to reduce costs. Dr Cheong also
gave further details on the performance of some of SIA's
subsidiaries in the first half. While catering and airport
services saw increases from the previous corresponding half
-- 4 per cent and 34.6 per cent respectively to $27 million
and $25 million -- the Singapore Airport Terminal Services
(Sats) group as a whole saw its profits drop by a third to
$33 million as a result of its investment arm losing some
$23 million on the Singapore stock market.


URACO HOLDINGS: To issue additional shares to Citicorp
------------------------------------------------------
The Singapore Business Times reports Uraco Holdings has
roped in Citicorp, on top of its substantial shareholder,
to help it get out of a jam over its loan covenants. The
contract manufacturer yesterday said that instead of just
issuing 5,000 preference shares to Chay Kwong Soon to raise
$5 million, it will now issue an additional 2,975 to 4,500
preference shares to Citicorp Investment Corp (Singapore)
for cash.

Uraco had earlier thought the $5 million from Mr Chay would
be enough to raise its net tangible asset to $86 million,
the minimum stipulated under the trust deed for its $45
million floating rate note issue. Breaching the minimum NTA
could render the notes repayable on demand though they are
due in 2002.

When the group announced its full-year results last month,
the company's consolidated tangible net worth was $79.9
million, which meant a shortfall of $6.1 million, instead
of $5 million as assessed earlier.

After exploring other fund-raising options, Uraco
eventually decided to increase the size of the redeemable
convertible preference share (RCPS) issue and invite
Citicorp to subscribe for up to an additional 4,500 RCPS.
The proposed issue will raise between $7.975 million and
$9.5 million, thus increasing the group's consolidated
tangible net worth to above the required $86 million.

Assuming Mr Chay converts all the 5,000 RCPS into new
shares, his shareholding will increase from the current
19.04 per cent to between 23 and 22.07 per cent.


VAN DER HORST: Troubled companies start to default on loans
-----------------------------------------------------------
According to the Hong Kong Standard, Van Der Horst, Lim Kah
Ngam and Goldtron, which are a construction and engineering
company, a hotel and real estate developer and a pager and
cellular phone maker, respectively, are among the first
Singapore companies to default on loans. Joining companies
in neighbouring Malaysia and Indonesia, a string of
Singapore companies are failing to repay debts, and the
trend is expected to accelerate with small companies
posting losses as demand falls.

Van Der Horst, previously controlled by its Indonesian
shareholders, told the Stock Exchange of Singapore two
weeks ago that it was negotiating with its lenders for a
small standstill agreement. Banks sold the shares owned by
chairman Johanes Kotjo which were pledged as collateral
after he could not repay his debt.


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

AYUDHYA INVESTMENT: GE Capital interested in securities arm
-----------------------------------------------------------
The Bangkok Post reports American financial services giant
GE Capital is interested in taking a stake in the
securities arm of Ayudhya Investment, according to industry
sources.

At the same time, a plan has already been submitted to the
Bank of Thailand calling for the finance arm of Ayudhya
Investment (Aitco) to be merged with its parent, the Bank
of Ayudhya.

The sources said that after Aitco separated its finance and
securities operations, a strategic foreign partner would be
brought in to take a stake in the new securities firm. GE
Capital has expressed interest in pairing up with Aitco.

Final checks of the books would begin after the central
bank gave final approval for the plan, one source said.
Aitco would transfer its seven billion baht in performing
loan assets to the Bank of Ayudhya after a tender offer for
shares was completed. Non-performing loans would be managed
by Aitco, which would return its finance licence to
regulators and could be transformed into an asset
management company.


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,
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