/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/981116.MBXT R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, November 16, 1998, Vol. 1, No. 187 Headlines * C H I N A & H O N G K O N G * CA PACIFIC: Investors clash on CA Pacific carve up GUANGDONG BREWERY: Guangdong denies brewery sale plan GUANGDONG ENTERPRISES: Faces mounting pressure GUANGDONG INTERNATIONAL: Bank exposure higher than expected MASS TRANSIT RAILWAY: Sets $10b target on borrowing * I N D O N E S I A * PT UNITED TRACTORS: Postpones creditor meeting * J A P A N * FUJI SPINNING: Announces restructuring plans KDD CO: Results announcement KOKUSAI DENSHIN DENWA: Results announcement SANYO ELECTRIC: Results announcement SHARP CORP: Results announcement YAMAHA CORP: Results announcement YAMAICHI SECURITIES: Files suits against former directors * K O R E A * DAEWOO GROUP: Fined for illegal 'internal trading' HYUNDAI GROUP: Fined for illegal 'internal trading' KIA MOTORS: Kia debt outweighs estimate LG GROUP: Fined for illegal 'internal trading' SAMSUNG: Fined for illegal 'internal trading' SK GROUP: Fined for illegal 'internal trading' SSANGYONG CEMENT: Workout application not approved SSANGYONG CONSTRUCTION: Workout application approved * M A L A Y S I A * ASHA CONSTRUCTION (M) SDN BHD: Winding-up petition DELPHI ENERGY & ENGINE MANAGEMENT: Voluntary winding-up GOOD ASIA CORPORATION SDN BHD: Winding-up petition HUA TA ENTERPRISE SDN BHD: Winding-up petition KOHAP GROUP: Creditors demand capital reduction NAMKWANG CIVIL ENGINEERING: Workout application approved PRIMESON SDN BHD: Winding-up petition SALPAC ENGINEERING SDN BHD: Winding-up petition TIME TELECOM: Binariang in pitch for Time division TOPGO MANUFACTURE (M) SDN BHD: Winding-up petition * S I N G A P O R E * FU YU MANUFACTURING: Denies charges by Sonica * T H A I L A N D * AMERICAN STANDARD SANITARYWARE: Results announcement BANK OF AYUDHYA: Fitch cites additional loan-loss needs HANTEX PCL: Results announcement SAHA GROUP: To fund expansion from share capital SE-EDUCATION PCL: Results announcement SIAM CITY BANK: To raise capital before privatisation SIAM COMMERCIAL BANK: Fitch cites additional loan-loss SIAM PANICH LEASING PCL: Results announcement THAI MILITARY BANK: Fitch cites additional loan-loss needs THAI OIL: In talks with creditors to suspend payments THAI OLEFINS: Seeks $400 million debt rollover THAI TORAY TEXTILE: Results announcement TONGKAH HARBOUR PCL: Results announcement VAROPAKORN PCL: Results announcement ================================= C H I N A & H O N G K O N G ================================= CA PACIFIC: Investors clash on CA Pacific carve up -------------------------------------------------- According to the SCMP, a court battle over entitlement to CA Pacific-held shares kicked off yesterday with two classes of investors clashing over the best way for liquidators to maximise their returns. The court is to decide whether the liquidation should proceed on a proprietary or unsecured basis. Class one investors are those whose recovery in the winding-up would be maximised if CA Pacific Securities clients were ordered to have proprietary claims to the securities and cash held with the brokerage. When CA Pacific and its margin financing arm collapsed in January, it owed 10,000 clients $1.4 billion worth of shares. However, it had only $900 million in shares on hand. A PricewaterhouseCoopers partner explained the shortfall of $500 million left clients with 60 per cent, so if the shares were sold and equally distributed, each client would get 60 cents on the dollar. This would best suit class two investors, in terms of maximising their positions. GUANGDONG BREWERY: Guangdong denies brewery sale plan ----------------------------------------------------- According to the Hong Kong Standard, Guangdong Investment, controlled by the Guangdong government, denied in a statement to the Stock Exchange of Hong Kong that it planned to sell its entire stake in Guangdong Brewery Holdings. Nor does it have plans to issue any new shares of Guangdong Brewery to Guangnan, said the statement. Companies controlled by the Guangdong provincial government have been facing speculation that they may have cash-flow problems since the failure of Gitic in October. GUANGDONG ENTERPRISES: Faces mounting pressure ---------------------------------------------- Guangdong Enterprises (Holdings) is facing mounting pressure on its financial resources in the coming two months as a company restructuring plan takes shape. The Guangdong provincial government's Hong Kong window company has reportedly asked bankers to rework a scheme for repaying US$12 million, the last of the three instalments on a syndicated loan due today. It wants to pay the last instalments in two portions, US$4 million today and the remaining US$8 million in a month's time. The first two instalments were paid in the past two weeks. The US$30 million syndicated loan arranged by Bankers Trust was already overdue with repayments already extended for about three weeks from last week of October. The company has at least two other debt payments due in the coming months, US$22 million on November 22 on its US$500 million bond due in 2007, and another US$11 million interest payment next month on a US$250 million bond due in 2003. Bankers said it would be difficult for Guangdong Enterprises to obtain fresh funds from the capital market amid prevailing caution towards mainland corporate. Sources said Guangdong Enterprises secured the blessing of Premier Zhu Rongi to receive a capital injection of more than HK$2 million. GUANGDONG INTERNATIONAL: Bank exposure higher than expected ----------------------------------------------------------- According to the SCMP and the Hong Kong Standard, foreign debts of Gitic and its subsidiaries could reach US$3 billion, more than double the amount previously estimated. The Hong Kong Monetary Authority last month put Hong Kong banking sector's debt exposure to Gitic at HK$11 billion, equivalent to US$1.4 billion. Dresdner Kleinwort Benson research analyst Paul Shum said total foreign debt could be as high as US$2 billion to US$3 billion. He said the figure was different from that of the HKMA's because his included lending by banks overseas. According to the SCMP, Mr Shum said The Bank of East Asia had debt exposure of HK$500 million, Dao Heng Bank had debt exposure of HK$200 million and Citic Ka Wah Bank HK$100 million, but HSBC would only be marginally affected with an estimated debt exposure of HK$1 billion and a full write off would cut its 1999 profits by 2 per cent only. Mr Shum said Gitic had little left for creditors to claim because its 700-plus projects and properties in the mainland were at varying degrees of completion and were not worth much. Mr Shum estimated the unsecured debts of Gitic's two Hong Kong offshoots -- Gitic Hong Kong (Holdings) and Guangxin Enterprises -- amounted to a third of Gitic's foreign debts. According to the Hong Kong Standard, Dresdner Kleinwort Benson said that most of Gitic's foreign debt is known to be unregistered. Mainland authorities said that Gitic's registered foreign debt amounted to HK$5.5 billion. MASS TRANSIT RAILWAY: Sets $10b target on borrowing --------------------------------------------------- The SCMP reports the Mass Transit Railway Corp. has set a borrowing target of $10 billion for next year and says this target does not take into account fund-raising from a possible listing of its shares. Chairman Jack So Chak-kwong said whether or not to list the corporation's shares would be determined by its shareholder, the Government. Secretary for Treasury Denise Yue Chung-yee said on Wednesday the Government would give "careful and serious consideration" to the possibility of privatisation -- either in whole or part -- of some of its assets through sale or an exchange listing. It yesterday signed a $4.12 billion revolving credit and term loan facility with 21 lending institutions. The deal is the largest fund-raising exercise to date both in Hong Kong and in Asia this year. ================= I N D O N E S I A ================= PT UNITED TRACTORS: Postpones creditor meeting ---------------------------------------------- The Asian Wall Street Journal reports that PT United Tractors, a 50 percent owned unit of the PT Astra International conglomerate, has delayed a meeting with its creditors since it hasn't reached an agreement with its financial advisors on cash-flow forecasts. According to company officials, a Thursday meeting in Singapore will be rescheduled as cash-flow projections are critical to any debt restructuring proposal. United Tractor's financial advisors are Chase Manhattan Asia (S.E.A.), Sakura Merchant Bank Ltd., and Sumitomo Bank, Ltd. PT United Tractors' parent, PT Astra International, is Indonesia's largest assembler of automobiles and proposed its own two step plan this month to restructure its foreign debt. Astra announced in October that business has fallen so much that it had stopped paying interest on about $1.4 billion in loans. ========= J A P A N ========= FUJI SPINNING: Announces restructuring plans -------------------------------------------- Fuji Spinning Co. of Japan said it will restructure amid flagging demand and stiff competition. The company said it will reorganize four of its domestic plants, including suspending operations at a cotton-spinning plant and a cotton-weaving plant. It expects the steps to reduce its cotton-spinning capacity by 30% and its cotton-weaving capacity by 45%. KDD CO: Results announcement ---------------------------- Bloomberg reports shares of KDD Co. fell 260 yen to 4,570. The international telecommunications service provider reported a fall of 52.5 percent in parent net profit to 2.166 billion yen for the half-year ended Sept. 30 as some customers switched to cheaper competitors or to KDD's own discount plans. The earnings are 45.9 percent less than the most recent forecast by Toyo Keizai. It also cut its group net-profit forecast 81.8 percent to 1 billion yen for the full-year ending in March. KOKUSAI DENSHIN DENWA: Results announcement ------------------------------------------- Nikkei News reports Kokusai Denshin Denwa Co. (KDD) posted an 80% year-on-year decline in operating profit to 1 billion yen for the fiscal first half ended Sept. 30, company officials said Thursday. This is equivalent to an operating loss of just under 500 million yen - the first on its telecommunications services since it was established in 1953 - if the effect of a change in accounting procedures is ignored. For the full year through March, KDD projects consolidated net profit of 1 billion yen. SANYO ELECTRIC: Results announcement ------------------------------------ Nikkei News reports Sanyo Electric Co. posted consolidated net profit of 5.7 billion yen for the interim term ended September, down 42% from a year earlier, the company reported Thursday. The decline was attributed to stagnant domestic sales of electrical appliances. Assuming an exchange rate of 125 yen per dollar for the second half, Sanyo projects a 35% drop in group net profit for the full year through March to 8 billion yen on a 1% decline in sales. SHARP CORP: Results announcement -------------------------------- Nikkei News reports Sharp Corp. announced Thursday that its consolidated net profit fell 86% from the year-earlier level in the fiscal half ended Sept. 30, to 2.9 billion yen. Lower prices for semiconductors and liquid crystals, combined with poor sales of PHS (personal handyphone system) units, weighed on Sharp's bottom line. For the full fiscal year through March 1999, Sharp's consolidated net profit is expected to drop 66%, to 8.5 billion yen, and consolidated revenue is projected at 1.77 trillion yen, a slide of 1%. YAMAHA CORP: Results announcement --------------------------------- Bloomberg reports shares of Yamaha Corp. fell 11 yen to 1,229. The maker of musical instruments reported net profit for the half year ended September fell 88 percent to 748 million yen and cut its full year net profit forecast to zero from a profit of 1.5 billion yen. YAMAICHI SECURITIES: Files suits against former directors --------------------------------------------------------- Yamaichi Securities Co. filed a civil suit at the Tokyo District Court seeking two billion yen in damages from nine former directors in connection with the brokerage house's failure last November. The suit alleges that illegal actions by the former directors, including former Chairman Tsugio Yukihira and former President Atsuo Miki, were responsible for the company's collapse. The suit specifically targets alleged covering of losses by the directors in the years after April 1992. The suit charges that the company suffered 38.8 billion yen in losses as a result of the concealment , and says two billion yen of that total is recoverable. ========= K O R E A ========= DAEWOO GROUP: Fined for illegal 'internal trading' -------------------------------------------------- The Korea Herald reports the Fair Trade Commission (FTC) has fined the nation's five largest family owned conglomerates (or chaebols) a total of 20.9 billion won for their illegal inter-subsidiary transactions. The investigation found that 33 affiliates of these chaebols engaged in illegal transactions worth over 1.49 trillion won with 21 other sister-affiliates, mostly units in financial trouble. A similar report in the Korea Times stated that a typical pattern of abuse was for the stronger companies in the group would purchase commercial paper or bonds issued by the weaker affiliates at inflated prices. It was also noted that there were cases where health companies delayed the receipt of payments from weaker affiliates. This particular series of fines also uncovered a new form of abuse found in the Daewoo Group, where nine subsidiaries allowed Daewoo Securities to play the role of virtually managing corporate bond issues in the name of other brokerage houses. This marks the second time this year that these chaebols have been fined for unlawfully supporting subsidiaries. In July, the FTC levied 72.2 billion won in fines against the same chaebols. Daewoo Group, with 11 affiliates, was fined a total of 4.5 billion won. HYUNDAI GROUP: Fined for illegal 'internal trading' --------------------------------------------------- The Korea Herald reports the Fair Trade Commission (FTC) has fined the nation's five largest family owned conglomerates (or chaebols) a total of 20.9 billion won for their illegal inter-subsidiary transactions. The investigation found that 33 affiliates of these chaebols engaged in illegal transactions worth over 1.49 trillion won with 21 other sister-affiliates, mostly units in financial trouble. A similar report in the Korea Times stated that a typical pattern of abuse was for the stronger companies in the group would purchase commercial paper or bonds issued by the weaker affiliates at inflated prices. It was also noted that there were cases where health companies delayed the receipt of payments from weaker affiliates. This particular series of fines also uncovered a new form of abuse found in the Daewoo Group, where nine subsidiaries allowed Daewoo Securities to play the role of virtually managing corporate bond issues in the name of other brokerage houses. This marks the second time this year that these chaebols have been fined for unlawfully supporting subsidiaries. In July, the FTC levied 72.2 billion won in fines against the same chaebols. Hyundai Group, with 13 affiliates, was fined a total of 9.1 billion won. KIA MOTORS: Kia debt outweighs estimate --------------------------------------- According to the SCMP and the Hong Kong Standard, Yonhap News Agency said that after an examination of Kia's books by Hyundai Motor, Hyundai chairman Chung Mong-kyu said the Kia Motors had "additional debt". Mr Chung said Hyundai had asked creditors to extend the period of examination by about 10 days for further clarification, but added that Hyundai would sign a deal to take control of Kia on Dec 1 as planned. The examination of books is to be completed on Nov 17. Industry analysts estimate Kia and Asia Motors to carry bad debt of between 12 and 16 trillion won. LG GROUP: Fined for illegal 'internal trading' ---------------------------------------------- The Korea Herald reports the Fair Trade Commission (FTC) has fined the nation's five largest family owned conglomerates (or chaebols) a total of 20.9 billion won for their illegal inter-subsidiary transactions. The investigation found that 33 affiliates of these chaebols engaged in illegal transactions worth over 1.49 trillion won with 21 other sister-affiliates, mostly units in financial trouble. A similar report in the Korea Times stated that a typical pattern of abuse was for the stronger companies in the group would purchase commercial paper or bonds issued by the weaker affiliates at inflated prices. It was also noted that there were cases where health companies delayed the receipt of payments from weaker affiliates. This particular series of fines also uncovered a new form of abuse found in the Daewoo Group, where nine subsidiaries allowed Daewoo Securities to play the role of virtually managing corporate bond issues in the name of other brokerage houses. This marks the second time this year that these chaebols have been fined for unlawfully supporting subsidiaries. In July, the FTC levied 72.2 billion won in fines against the same chaebols. LG Group, with 3 affiliates, was fined a total of 2.2 billion won. SAMSUNG: Fined for illegal 'internal trading' --------------------------------------------- The Korea Herald reports the Fair Trade Commission (FTC) has fined the nation's five largest family owned conglomerates (or chaebols) a total of 20.9 billion won for their illegal inter-subsidiary transactions. The investigation found that 33 affiliates of these chaebols engaged in illegal transactions worth over 1.49 trillion won with 21 other sister-affiliates, mostly units in financial trouble. A similar report in the Korea Times stated that a typical pattern of abuse was for the stronger companies in the group would purchase commercial paper or bonds issued by the weaker affiliates at inflated prices. It was also noted that there were cases where health companies delayed the receipt of payments from weaker affiliates. This particular series of fines also uncovered a new form of abuse found in the Daewoo Group, where nine subsidiaries allowed Daewoo Securities to play the role of virtually managing corporate bond issues in the name of other brokerage houses. This marks the second time this year that these chaebols have been fined for unlawfully supporting subsidiaries. In July, the FTC levied 72.2 billion won in fines against the same chaebols. Samsung, with 2 affiliates, was fined a total of 3 billion won. SK GROUP: Fined for illegal 'internal trading' ---------------------------------------------- The Korea Herald reports the Fair Trade Commission (FTC) has fined the nation's five largest family owned conglomerates (or chaebols) a total of 20.9 billion won for their illegal inter-subsidiary transactions. The investigation found that 33 affiliates of these chaebols engaged in illegal transactions worth over 1.49 trillion won with 21 other sister-affiliates, mostly units in financial trouble. A similar report in the Korea Times stated that a typical pattern of abuse was for the stronger companies in the group would purchase commercial paper or bonds issued by the weaker affiliates at inflated prices. It was also noted that there were cases where health companies delayed the receipt of payments from weaker affiliates. This particular series of fines also uncovered a new form of abuse found in the Daewoo Group, where nine subsidiaries allowed Daewoo Securities to play the role of virtually managing corporate bond issues in the name of other brokerage houses. This marks the second time this year that these chaebols have been fined for unlawfully supporting subsidiaries. In July, the FTC levied 72.2 billion won in fines against the same chaebols. SK Group, with 4 affiliates, was fined a total of 2.2 billion won. SSANGYONG CEMENT: Workout application not approved -------------------------------------------------- The Korean language Maeil Kyungje reports that the Ssangyong Cement Company's application for a workout program was disapproved by the Cho Hung bank at their creditors' meeting on Nov. 11. The creditors said that a workout program is not necessary for the company because the amount of its debt is manageable and the company itself has set out its own restructuring program. SSANGYONG CONSTRUCTION: Workout application approved ---------------------------------------------------- The Korean language Maeil Kyungje reports that the Ssangyong Construction Company's application for a workout program was approved by the Cho Hung bank at their creditors' meeting on Nov. 11. =============== M A L A Y S I A =============== ASHA CONSTRUCTION (M) SDN BHD: Winding-up petition -------------------------------------------------- Wong Ah Fa on 8/10/98 petitioned for the winding-up of Asha Construction (M) Sdn Bhd. The petition is directed to be heard on 30/12/98. DELPHI ENERGY & ENGINE MANAGEMENT: Voluntary winding-up ------------------------------------------------------- The members of Delphi Energy & Engine Management System Sdn Bhd on 9/11/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 14/12/98. GOOD ASIA CORPORATION SDN BHD: Winding-up petition -------------------------------------------------- Selangor Industrial Corporation Sdn Bhd on 17/9/98 petitioned for the winding-up of Good Asia Corporation Sdn Bhd. The petition is directed to be heard on 30/12/98. HUA TA ENTERPRISE SDN BHD: Winding-up petition ---------------------------------------------- Hongkong Bank Malaysia Bhd on 4/9/98 petitioned for the winding-up of Hua Ta Enterprise Sdn Bhd. The petition is directed to be heard on 8/12/98. KOHAP GROUP: Creditors demand capital reduction ----------------------------------------------- The Asian Wall Street Journal reports creditors of the three listed units of the Kohap Group have demanded capital reductions as a condition of their debt rescheduling plan for these companies. Shareholders are scheduled to meet on December 23 to approve the proposed capital reduction plans. The affiliates and their recommended capital reductions are Kohap Ltd., a maker of nylon and polyester goods will reduce its capital 78 percent to 35 billion won; Kohap Inc., the trading arm of the Kohap Group will be reduced 89 percent to 7.55 billion won; and Korea Petrochemicals will reduce its capital 68 percent to 26.95 billion won. NAMKWANG CIVIL ENGINEERING: Workout application approved -------------------------------------------------------- The Korean language Maeil Kyungje reports that the Namkwang Civil Engineering Company's application for a workout program was approved by the Cho Hung bank at their creditors' meeting on Nov. 11. PRIMESON SDN BHD: Winding-up petition ------------------------------------- Primeson Sdn Bhd was on 26/1/98 petitioned to wind-up by a provisional liquidator. SALPAC ENGINEERING SDN BHD: Winding-up petition ----------------------------------------------- Tru-Mix Concrete Sdn Bhd on 14/10/98 petitioned for the winding-up of Salpac Engineering Sdn Bhd. The petition is directed to be heard on 26/2/99. TIME TELECOM: Binariang in pitch for Time division -------------------------------------------------- According to the SCMP, Bianriang, Malaysia's sole satellite television company, is in talks to buy a controlling stake in Time Telecommunications, making it the second bidder for ailing Time Engineering's phone unit. Binariang's offer follows a Sept 9 proposal by Technology Resources Industries, or TRI, to buy the Time unit for about M$2.5 billion in assumed debt and a token $1. In July, Time Engineering and nine of its units won court protection from creditors, giving them breathing space to restructure estimated debt of about $2.5 billion. Time Engineering Industries is expected to sell some of its bad debts to Malaysia's asset management corporation, the Pengurusan Danaharta Nasional. TOPGO MANUFACTURE (M) SDN BHD: Winding-up petition -------------------------------------------------- Bank Utama (Malaysia) Bhd on 1/10/98 petitioned for the winding-up of Topgo Manufacture (M) Sdn Bhd. The petition is directed to be heard on 15/12/98. ================= S I N G A P O R E ================= FU YU MANUFACTURING: Denies charges by Sonica --------------------------------------------- Plastic injection moulding firm Fu Yu Manufacturing "categorically denies" charges brought about in a suit by a client and intends to "vigorously defend" itself. In a statement yesterday, Fu Yu said it had "instructed solicitors" to contest the alleged breaches of contract and of a second agreement brought against it by computer monitor maker Sonica Industries. Sonica alleged that Fu Yu had agreed to supply 87,500 units of Sonica's Image Vision OSD 1785 at $20 per unit or $1.75 million in total. According to Fu Yu yesterday, Sonica is also suing for $74,160 and $12,360 per month for alleged breach of a secondment agreement. Fu Yu said Sonica engaged it to assemble the mentioned monitors using parts from suppliers specified by Sonica. It claimed Sonica failed to disclose that it was already facing claims and suits at around that time of the order, which made the said suppliers reluctant to supply the required parts, when informed that the monitors were for Sonica, even though they would be paid for by Fu Yu. When Fu Yu was eventually able to obtain the parts and assemble various quantities of monitors, Sonica "induced" it to make "partial deliveries by tendering various cheques in part payment", said the Fu Yu statement. "However, all the cheques were dishonoured, whereupon the company suspended further assembly and deliveries," it added. Fu Yu also claimed that at the time of Sonica's suit, "a petition by a creditor had already been presented to wind up Sonica". The petition, it added, is "supported by seven supporting creditors, as at Nov 10, 1998, including the CPF Board". Fu Yu said that it would be pursuing a "major counterclaim" for damages for breach of contract and for the non-payment of goods delivered. =============== T H A I L A N D =============== AMERICAN STANDARD SANITARYWARE: Results announcement ---------------------------------------------------- American Standard Sanitaryware reports reviewed quarterly financial statements as a net loss of Bt7.47 million for the period ending September 30, 1998. This compares with a profit of Bt73.1 million for the corresponding 1997 period. BANK OF AYUDHYA: Fitch cites additional loan-loss needs ------------------------------------------------------- The Asian Wall Street Journal cited Fitch IBCA officials as saying that three Thai banks are in precarious financial condition. The three banks need to make additional loan- loss provisions that will reduce their current equity at least 60 percent. The banks and the specific comments on their loan-loss provisions are: Bank of Ayudhya, which reportedly needs to make additional loan-loss provisions of 19.7 billion baht; Siam Commercial Bank, which reportedly needs to make additional loan-loss provisions of 21.1 billion baht; and Thai Military Bank, which reportedly needs to make additional loan-loss provisions of 15 billion baht. HANTEX PCL: Results announcement -------------------------------- Hantex PCL reports reviewed quarterly financial statements as a net loss of Bt3.3 million for the period ending September 30, 1998. This compares with a loss of Bt57.3 million for the corresponding 1997 period. SAHA GROUP: To fund expansion from share capital ------------------------------------------------ The Bangkok Post reports the Saha Group says it will raise capital by focusing on equity funding to expand its future business and reduce debt costs. Group chairman Boonsithi Chokwatana recently announced a policy to raise equity to retire foreign debt, according to Boonyarith Mahamontri, managing director of Lion (Thailand), a Saha Group subsidiary. An example of the strategy is Lion (Thailand), a joint venture between Saha Group and Japan's Lion Corp, a producer of detergent and toothpaste. The company will double its capital next year to 300 million baht, with some of the money used for expansion and some to repay offshore loans. The company will keep raising capital until it can manage without the need for offshore funding, a process Mr Boonyarith said would take five or six years. SE-EDUCATION PCL: Results announcement -------------------------------------- SE-Education reports quarterly financial statements as a net loss of Bt9.88 million for the period ending September 30, 1998. This compares with a profit of Bt7.3 million for the corresponding 1997 period. SIAM CITY BANK: To raise capital before privatisation ----------------------------------------------------- Siam City Bank will sell the government subordinated debentures worth five billion baht to raise capital funds and offset losses incurred through debt restructuring. Bank president Sompoch Intranukul said the bank had already restructured and signed new loan contracts for 20 customers, involving debt of about four billion baht. Loans totalling 28 billion baht, owed by another 20 clients, should be restructured by year-end, he said. Mr Sompoch said the bank expected losses of about five billion baht after restructuring customer debt. These losses would be used to apply for new capital under the government's recapitalisation scheme, where subordinated debentures are issued in return for government bonds. The subordinated debentures, counted as tier-two capital, will be used by the bank to help fund business expansion. Siam City Bank was taken over by regulators earlier this year. The government plans to privatise the bank within several months. SIAM COMMERCIAL BANK: Fitch cites additional loan-loss ------------------------------------------------------ The Asian Wall Street Journal cited Fitch IBCA officials as saying that three Thai banks are in precarious financial condition. The three banks need to make additional loan- loss provisions that will reduce their current equity at least 60 percent. The banks and the specific comments on their loan-loss provisions are: Bank of Ayudhya, which reportedly needs to make additional loan-loss provisions of 19.7 billion baht; Siam Commercial Bank, which reportedly needs to make additional loan-loss provisions of 21.1 billion baht; and Thai Military Bank, which reportedly needs to make additional loan-loss provisions of 15 billion baht. SIAM PANICH LEASING PCL: Results announcement --------------------------------------------- Siam Panich Leasing PCL reports reviewed quarterly financial statements as a net loss of Bt276 million for the period ending September 30, 1998. This compares with a loss of Bt889 million for the corresponding 1997 period. THAI MILITARY BANK: Fitch cites additional loan-loss needs ---------------------------------------------------------- The Asian Wall Street Journal cited Fitch IBCA officials as saying that three Thai banks are in precarious financial condition. The three banks need to make additional loan- loss provisions that will reduce their current equity at least 60 percent. The banks and the specific comments on their loan-loss provisions are: Bank of Ayudhya, which reportedly needs to make additional loan-loss provisions of 19.7 billion baht; Siam Commercial Bank, which reportedly needs to make additional loan-loss provisions of 21.1 billion baht; and Thai Military Bank, which reportedly needs to make additional loan-loss provisions of 15 billion baht. THAI OIL: In talks with creditors to suspend payments ----------------------------------------------------- According to the Asian Wall Steet Journal, Thai Oil Company, an oil refiner partially owned by the Thai government, is in negotiations with 124 creditors to suspend principle payments on loans valued at $1.9 billion. Thai Oil's creditors are mainly foreign banks from the US, Europe, and Japan. Thai Oil also has plans to boost cash flow by issuing news shares for existing shareholders increasing its capital from 200 million baht to 8 billion baht. Thailand saw its domestic oil consumption drop by 10.5 percent from January to April this year, according to official data. Thai Oil has also been reported to be dealing with shrinking revenues at home by exporting its products. However, the article stated that oil demand in Asia is also expected to drop this year. THAI OLEFINS: Seeks $400 million debt rollover ---------------------------------------------- The Bangkok Post reports Thai Olefins Co, the cash-strapped petrochemical affiliate of the Petroleum Authority of Thailand (PTT), is seeking to roll over its US$400 million in debts for one to two years. PTT governor Pala Sookawesh said yesterday the move had become inevitable, given the poor prospects for a recovery in olefins prices and the resulting impact on the company's financial standing. He said Thai Olefins expected some of the profit it earned in the first half of the year to be wiped out by a substantial loss in the second half. World prices of olefins have been halved to $300 a tonne since the start of the year. The company's debt restructuring will mean the indefinite suspension of a $100-million plan to increase the production capacity of its Rayong complex by 25% to improve economies of scale. THAI TORAY TEXTILE: Results announcement ---------------------------------------- Thai Toray Textile Mills Public Company Limited and Subsidiary reports quarterly financial statements as a net loss Bt10 million for the period ending September 30, 1998. This compares with a loss of Bt146 million for the corresponding 1997 period. TONGKAH HARBOUR PCL: Results announcement ----------------------------------------- Tongkah Harbour PCL reports financial statements for the third quarter ending September 30, 1998 as a net loss of Bt9.91 million, a decline of Baht 12.80 million compared with a profit of Baht 2.89 million for the same period of 1997. VAROPAKORN PCL: Results announcement ------------------------------------ Varopakorn PCL reports reviewed quarterly financial statements as a net loss of Bt8.9 million for the period ending September 30, 1998. This compares with a loss of Bt67.3 million for the corresponding 1997 period. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Princeton, NJ USA, and Beard Group, Inc., Washington, DC USA. Debra Brennan and Lexy Mueller, Editors. Copyright 1998. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $875 per month delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *