/raid1/www/Hosts/bankrupt/TCRAP_Public/981118.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 18, 1998, Vol. 1, No. 189

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS GROUP: Results announcement
JF INVESTMENT MANAGEMENT (JIANGSU): Notice to creditors
KPS VIDEO CHAIN: 400 KPS staff in push for liquidation
KERRY PROPERTIES: S&P lowers credit ratings
LONG & LAM INDUSTRIES LIMITED: Notice of first meetings

MANSION HARDWARES & EQUIPMENT LIMITED: Winding-up petition
PALIBURG HOLDINGS: Paliburg gets a break
SWEET HOME PROPERTIES LIMITED: Winding-up order
XIN TONG (MING GANG) LIMITED: Winding-up order


* I N D O N E S I A *

PT UNITED TRACTORS: Postpones creditors' meeting


* J A P A N *

EBARA CORP: Results announcement
KYOCERA CORP: Results announcement
LONG TERM CREDIT: Urged to set new management policy
MITSUBISHI MOTORS: Moody's may downgrade ratings
NIKKO SECURITIES: Closes three HK operations

NISSAN MOTOR: Moody's may downgrade ratings
TOKYO ELECTRON: Results announcement

* K O R E A *

DAEWOO GROUP: Elimination of inter-subsidiary payments
HALLA HEAVY INDUSTRIES: Shipbuilder allowed reprieve
HYUNDAI GROUP: Elimination of inter-subsidiary payments
LG GROUP: Elimination of inter-subsidiary payments
SAMSUNG GROUP: Elimination of inter-subsidiary payments
SK GROUP: Elimination of inter-subsidiary payments


* M A L A Y S I A *

GPI PLASTER OF PARIS SDN BHD: Winding-up petition
SAKUNI DEVELOPMENT SDN BHD: Winding-up petition
TAI WAH GARMENTS MANUFACTURING BHD: Take-over deal
TEKNIK CEKAP SDN BHD: Winding-up petition


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

INTERNATIONAL CONTAINER: Results announcement
PHILIPPINE AIRLINES: PAL bid hit by loss forecasts
PHILIPPINE NATIONAL BANK: Results announcement


* S I N G A P O R E *

HITACHI ZOSEN SINGAPORE: Keppel lowers takeover price
THAKRAL CORP: Results announcement


* T H A I L A N D *

CALTEX OIL: Borrows $35m to refinance debts
THAI OIL: Stops interest payment ahead of talks
THAI PETROCHEMICAL: Firm in debt to equity deal


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

ALBATRONICS GROUP: Results announcement
---------------------------------------
The Albatronics Group announced it had incurred an
unaudited operating loss of $240 million in the five months
ended August 31 following a write-off in its VCD
operations, which has been hard hit by the current regional
economic crisis. The company said its unaudited
consolidated net deficit amounted to approximately $135.95
million.

Nam Tai is subscribing 200 million new shares from
Albatronics, following an agreement signed on Wednesday. A
director of the group said the loss was due to the
provision for VCD operation, amounting to approximately
$131 million, which represents a complete write-off of such
operation. The provision included write-down of stocks of
approximately $98 million and write-down of moulds of about
$33 million.


JF INVESTMENT MANAGEMENT (JIANGSU): Notice to creditors
-------------------------------------------------------
Notice is hereby given that the creditors of JF Investment
Management (Jiangsu) Limited (in creditors' voluntary
liquidation) are required on or before 18th 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 44th
Floor, Jardine House, 1 Connaught Road, Central, Hong Kong.


KPS VIDEO CHAIN: 400 KPS staff in push for liquidation
------------------------------------------------------
According to the SCMP, a petition for winding up KPS will
be filed in the High Court on Thursday and is regarded as a
technicality by the receivers. A Legal Aid Department
spokesman said this may trigger the possibility of payment
from the Labour Department. More than 400 KPS staff had
applied for the liquidation of the video chain by  
yesterday.

They want payouts from the Protection of Wages on
Insolvency Fund, which compensates staff of liquidated
firms.

It has been widely rumored that Hongkong Telecom, Wharf
Cable and Blockbuster Video, a US-based chain, were all
keen to buy the company.


KERRY PROPERTIES: S&P lowers credit ratings
-------------------------------------------
The Asian Wall Street Journal reports that Standard &
Poor's Ratings Group has lowered its corporate ratings on
Kerry Properties Ltd. from BBB to BBB-. This move reflects
heightened business risk in the Hong Kong property market.  

Kerry reportedly targets the high end Hong Kong properties,
including luxury residential, commercial, office and
warehouse properties. Furthermore, property development has
historically accounted for about half of Kerry's earnings.


LONG & LAM INDUSTRIES LIMITED: Notice of first meetings
-------------------------------------------------------
In the High Court of Hong Kong Special Administration
Region Court of First Instance, companies winding-up
proceeding (No.519 of 1998), a notice of first meetings is
hereby given that creditors and contributors of Long & Lam
Industries Limited will meet on November 26, 1998 at the
Official Receiver's Office at 10/F, Queensway Government
Offices, 66 Queensway, Hong Kong.


MANSION HARDWARES & EQUIPMENT LIMITED: Winding-up petition
----------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Mansion Hardwares & Equipment Limited by the High Court
of Hong Kong was, on the 22nd day of October, 1998,
presented to the said Court by Kwan Pui Wing and the
petition is heard on 2nd day of December, 1998. Other
creditors who support or oppose the making of the order may
appear at the time of the hearing.  


PALIBURG HOLDINGS: Paliburg gets a break
----------------------------------------
According to the Hong Kong Standard, creditor banks have
decided to hold in abeyance action against Paliburg
Holdings for its failure to settle late last month a
$262.25 million loan guarantee that it granted to a
subsidiary. It is unclear as to whether the group also
failed to meet payment of credit lines of $70 million that
matured on Nov 5.

A banker said that an informal standstill was actually in
place pending a bridge loan being put together by a
syndicate being led by HongkongBank. An outcome of this
before Christmas is expected. He indicated that Paliburg's
creditors had effectively granted the group a concession by
waiving default interest rates in favor of normal interest
rates. Paliburg provided the guarantee in relation to half
of a $524.5 million loan obtained by Rapid Growth Holdings,
which is half owned by Paliburg.


SWEET HOME PROPERTIES LIMITED: Winding-up order
-----------------------------------------------
A winding-up order notice is hereby given that Sweet Home
Properties Limited is undergoing a companies winding-up
proceedings (No 700 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on November 4, 1998. The date of
presentation of petition was September 29, 1998.    


XIN TONG (MING GANG) LIMITED: Winding-up order
----------------------------------------------
A winding-up order notice is hereby given that Xin Tong
(Ming Gang) Limited is undergoing a companies winding-up
proceedings (No 686 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on November 4, 1998. The date of
presentation of petition was September 25, 1998.    


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

PT UNITED TRACTORS: Postpones creditors' meeting
------------------------------------------------
Singapore Business Times cites a Bloomberg report that PT
United Tractors, a unit of Indonesia's largest carmaker, PT
Astra International, postponed a creditors meeting in       
Singapore on Friday after its parent scheduled an
announcement for yesterday, a banker at Sumitomo Bank Ltd
said. United Tractors, which has about US$270 million in
debt, had sought a meeting with its creditors to request a
freeze on interest payments.

Last month Astra presented to the group's creditors a plan
to halt interest payments on US$1.4 billion debt for as
long as two years.

The creditors meeting was arranged by Chase Manhattan
Corp., Sumitomo Bank and Sakura Bank Ltd. The three are
also creditors of Astra International. No date was fixed
for a new meeting. United Tractors could not be reached for
comment.

United Tractors plunged to a 1.79 trillion rupiah (S$383
million) loss in the first half of the year due to foreign
exchange losses, compared with a profit of 46.47 billion
rupiah for the same period a year ago.


=========
J A P A N  
=========

EBARA CORP: Results announcement
--------------------------------
Nikkei News reports Ebara Corp. posted a net loss of 4.3
billion yen for the half year ended September, down from
2.5 billion in net profit a year earlier, the company
announced Monday. The poor performance was attributed to
slowing demand for chip polishing equipment in a sluggish
world market for semiconductors as well as appraisal losses
on stockholdings totaling 7.3 billion yen. The Tokyo-based
maker of pumps and electronic equipment foresees net profit
for the year through March at 2.3 billion yen, down 73%
year on year. Despite the red ink, Ebara intends to pay a
planned dividend of 11.5 yen.


KYOCERA CORP: Results announcement
----------------------------------
Nikkei News reports Kyocera Corp. posted a 16.6 billion yen
consolidated net profit in the fiscal first half ended
Sept. 30, down 33% from a year earlier, company officials
announced Monday. The decline was due largely to slumping
sales of telecommunications equipment, including personal
handyphone systems, and ceramic IC packages.


LONG TERM CREDIT: Urged to set new management policy
----------------------------------------------------
According to Kyodo News, Minister for Financial
Reconstruction Hakuo Yanagisawa said Tuesday he expects the
new managers of the nationalized Long-Term Credit Bank of
Japan (LTCB) to decide the bank's new management policy by
the end of November. Under the new management, the bank is
expected to review its loans thoroughly, determine bad
loans in more strict terms, then transfer them to a planned
state-run debt-collection agency. During the process, the
bank will decide whether to roll over the existing
loans depending on the borrowers' repayment ability.


MITSUBISHI MOTORS: Moody's may downgrade ratings
------------------------------------------------
Kyodo News reports Moody's Investors Service said Monday it
has put the credit ratings of Nissan Motor Co. and
Mitsubishi Motors Corp. under review for possible
downgrade. The two companies, which are suffering from
declining sales, currently have the U.S. credit rating
agency's ratings of Baa3.

If their credit ratings were cut even a notch, they would
fall into the "Ba1" territory, where any purchase of their
debt instruments, such as corporate bonds, would be deemed
as highly risky speculative investments. The two auto
makers' dependence on large amounts of liabilities to
sustain their operations "results in greater uncertainty
over the impact of the deepening recession and weakening
financial system in Japan on their businesses," Moody's
said.

If Moody's cut the ratings, it would make it even more
difficult for the two to take out loans at financial
institutions or borrow directly from investors through bond
floatations, thus putting them into an even tougher
business environment, industry analysts said.


NIKKO SECURITIES: Closes three HK operations
--------------------------------------------
Nikko Securities Co. said it is closing three operations in
Hong Kong as part of a global restructuring, but declined
to say how many employees will be fired. The company, one
of Japan's largest brokerage firms, said it is closing
Nikko Securities Co. (Asia) Ltd., Nikko Securities Co.
(Hong Kong) Ltd. and Nikko Futures (Hong Kong) Ltd. The
offices employ about 90 people.

Nikko said it will continue taking orders until Nov. 30,
but only accept orders. In September, 31 employees were
laid off at Nikko Securities Co. (Asia) and 20 were fired
at Nikko Research Center, half from its Hong Kong office
and half in Singapore.

Nikko Securities Co. (Asia) is involved in investment
banking, Asian-equities trading, fixed-income and treasury
operations, while Nikko Research Center provides regional
financial research.


NISSAN MOTOR: Moody's may downgrade ratings
-------------------------------------------
Kyodo News reports Moody's Investors Service said Monday it
has put the credit ratings of Nissan Motor Co. and
Mitsubishi Motors Corp. under review for possible
downgrade. The two companies, which are suffering from
declining sales, currently have the U.S. credit rating
agency's ratings of Baa3.

If their credit ratings were cut even a notch, they would
fall into the "Ba1" territory, where any purchase of their
debt instruments, such as corporate bonds, would be deemed
as highly risky speculative investments. The two auto
makers' dependence on large amounts of liabilities to
sustain their operations "results in greater uncertainty
over the impact of the deepening recession and weakening
financial system in Japan on their businesses," Moody's
said.

If Moody's cut the ratings, it would make it even more
difficult for the two to take out loans at financial
institutions or borrow directly from investors through bond
floatations, thus putting them into an even tougher
business environment, industry analysts said.


TOKYO ELECTRON: Results announcement
------------------------------------
Nikkei News reports Tokyo Electron Ltd. forecasts a
consolidated net loss of 4 billion yen in the year through
March, compared with the 30 billion yen profit scored in
fiscal 1997 but better than the 6 billion yen loss
previously expected, company officials said Monday. Cuts in
capital spending and labor costs as well as other
streamlining measures are behind the improved forecast.


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

DAEWOO GROUP: Elimination of inter-subsidiary payments
------------------------------------------------------
An article in the Korea Herald reported that a letter of
intent exchanged between the Korean government and the
International Monetary Fund (IMF) obligates the nation's
five largest family owned conglomerates (or chaebols) to
eliminate all cross payment guarantees among subsidiaries
in different industries by the end of this year. A similar
story in the Korea Times said that these chaebols should
also remove all inter-subsidiary debt guarantees made even
between similar industries by March 2000.  

Additionally, the five largest chaebols are required to
reach agreements with their creditor banks by the end of
this year to improve their capital structure.  

These plans were included in a letter of intent exchanged
the IMF and the Korean government during a fourth-quarter
review of the IMF loan package.  

In September, the Korea Herald published data from the
Korea Fair Trade Commission related to the inter-subsidiary
debt guarantees of the top five chaebols. The ratio of the
amount of intersubsidiary payment guarantees to group net
worth for the Daewoo Group is 124.46%.


HALLA HEAVY INDUSTRIES: Shipbuilder allowed reprieve
----------------------------------------------------
According to the SCMP, creditors of Halla Heavy Industries,
an insolvent Korean shipbuilder, allowed the company to
reschedule 2.1 trillion won in an effort to prevent it and
three other units from being liquidated.

Officials at Halla and Korea Exchange Bank, a key creditor
bank, said that Halla Heavy Industries creditors agreed to
write off as much as 51 per cent of the shipbuilder's
secured and unsecured debts in return for a one-time cash
repayment of all remaining debts in the next three months.

The Korea Times says Halla officials reported that
Rothschild Inc., a leading American fund manager, has
already agreed to come up with the financing for paying off
the some of their loans. This agreement was part of a
ruling to allow the Halla Engineering and Heavy Industries
(sometimes referred to as Halla Heavy Industry Company) to
enter into court receivership.


HYUNDAI GROUP: Elimination of inter-subsidiary payments
-------------------------------------------------------
An article in the Korea Herald reported that a letter of
intent exchanged between the Korean government and the
International Monetary Fund (IMF) obligates the nation's
five largest family owned conglomerates (or chaebols) to
eliminate all cross payment guarantees among subsidiaries
in different industries by the end of this year. A similar
story in the Korea Times said that these chaebols should
also remove all inter-subsidiary debt guarantees made even
between similar industries by March 2000.  

Additionally, the five largest chaebols are required to
reach agreements with their creditor banks by the end of
this year to improve their capital structure.  

These plans were included in a letter of intent exchanged
the IMF and the Korean government during a fourth-quarter
review of the IMF loan package.  

In September, the Korea Herald published data from the
Korea Fair Trade Commission related to the inter-subsidiary
debt guarantees of the top five chaebols. The ratio of the
amount of inter-subsidiary payment guarantees to group net
worth for the Hyundai Group is 105.17%.


LG GROUP: Elimination of inter-subsidiary payments
--------------------------------------------------
An article in the Korea Herald reported that a letter of
intent exchanged between the Korean government and the
International Monetary Fund (IMF) obligates the nation's
five largest family owned conglomerates (or chaebols) to
eliminate all cross payment guarantees among subsidiaries
in different industries by the end of this year. A similar
story in the Korea Times said that these chaebols should
also remove all inter-subsidiary debt guarantees made even
between similar industries by March 2000.  

Additionally, the five largest chaebols are required to
reach agreements with their creditor banks by the end of
this year to improve their capital structure.  

These plans were included in a letter of intent exchanged
the IMF and the Korean government during a fourth-quarter
review of the IMF loan package.  

In September, the Korea Herald published data from the
Korea Fair Trade Commission related to the inter-subsidiary
debt guarantees of the top five chaebols. The ratio of the
amount of inter-subsidiary payment guarantees to group net
worth for the LG Group is 29.28%.

  
SAMSUNG GROUP: Elimination of inter-subsidiary payments
-------------------------------------------------------
An article in the Korea Herald reported that a letter of
intent exchanged between the Korean government and the
International Monetary Fund (IMF) obligates the nation's
five largest family owned conglomerates (or chaebols) to
eliminate all cross payment guarantees among subsidiaries
in different industries by the end of this year. A similar
story in the Korea Times said that these chaebols should
also remove all inter-subsidiary debt guarantees made even
between similar industries by March 2000.  

Additionally, the five largest chaebols are required to
reach agreements with their creditor banks by the end of
this year to improve their capital structure.  

These plans were included in a letter of intent exchanged
the IMF and the Korean government during a fourth-quarter
review of the IMF loan package.  

In September, the Korea Herald published data from the
Korea Fair Trade Commission related to the inter-subsidiary
debt guarantees of the top five chaebols. The ratio of the
amount of inter-subsidiary payment guarantees to group net
worth for the Samsung Group is 27.69%.


SK GROUP: Elimination of inter-subsidiary payments
--------------------------------------------------
An article in the Korea Herald reported that a letter of
intent exchanged between the Korean government and the
International Monetary Fund (IMF) obligates the nation's
five largest family owned conglomerates (or chaebols) to
eliminate all cross payment guarantees among subsidiaries
in different industries by the end of this year. A similar
story in the Korea Times said that these chaebols should
also remove all inter-subsidiary debt guarantees made even
between similar industries by March 2000.  

Additionally, the five largest chaebols are required to
reach agreements with their creditor banks by the end of
this year to improve their capital structure.  

These plans were included in a letter of intent exchanged
the IMF and the Korean government during a fourth-quarter
review of the IMF loan package.  

In September, the Korea Herald published data from the
Korea Fair Trade Commission related to the inter-subsidiary
debt guarantees of the top five chaebols. The ratio of the
amount of inter-subsidiary payment guarantees to group net
worth for the SK Group is 15.93%.


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

GPI PLASTER OF PARIS SDN BHD: Winding-up petition
-------------------------------------------------
Sime Inax Sdn Bhd on 26/10/98 petitioned for the winding-up
of GPI Plaster of Paris Sdn Bhd. The petition is directed
to be heard on 26/1/99.


SAKUNI DEVELOPMENT SDN BHD: Winding-up petition
-----------------------------------------------
OCBC Finance Bhd on 12/10/98 petitioned to wind-up Sakuni
Development Sdn Bhd. The petition is directed to be heard
on 24/2/99.


TAI WAH GARMENTS MANUFACTURING BHD: Take-over deal
--------------------------------------------------
Glomac Group, a property developer, will make a reverse
take-over of Tai Wah Garments Manufacturing Bhd (listed on
the KLSE) in a bid for back-door listing. Glomac will
provide a profit guarantee of RM20mil per annum for the
next three financial years.


TEKNIK CEKAP SDN BHD: Winding-up petition
-----------------------------------------
Shin Wa Metals (M) Sdn Bhd on 26/8/98 petitioned for the
winding-up of Teknik Cekap Sdn Bhd. The petition is
directed to be heard on 3/12/98.


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

INTERNATIONAL CONTAINER: Results announcement
---------------------------------------------
International Container Terminal Services, Inc. (ICTSI)
reported a decrease in profits by 7.4% to 278.54 million
Philippine pesos (PhP) compared with PhP300.96 million
posted in the same period last year. Earnings mainly came
from the company's international operations through wholly
owned subsidiary, ICTSI International Holdings Corp.
Subsidiary Manila International Container Terminal (MICT),
on the other hand, continued to experience lower volumes
due to the slowdown in import activities.


PHILIPPINE AIRLINES: PAL bid hit by loss forecasts
--------------------------------------------------
According to the SCMP and the Hong Kong Standard, a dispute
over valuation could scupper Cathay Pacific Airway's bid to
buy control of bankrupt PAL.

Reports from Manila said that Cathay believes PAL will lose
US$800 million based on cash-flow forecasts for the next 10
years but PAL insists the figure will only be in the $200
million range.

According to the SCMP, well-placed sources said PAL's value
depends largely on the outcome of negotiations with
creditors and the extent to which the government will
subsidise the unprofitable but politically domestic routes
PAL flies.

Since PAL owns only five of the 34 aircraft it now flies,
the remainder being leased, costs will depend largely on
how it rebuilds its post-Cathay bailout fleet.


PHILIPPINE NATIONAL BANK: Results announcement
----------------------------------------------
Philippine National Bank said it incurred a net loss of 500
million pesos in the three months to September on an
interest income of 5.46 billion pesos. Net interest income
--less interest expense -- reached 1.22 billion pesos,
while provision for probable loans and other losses amount
to 448 million pesos, the company said in a disclosure to
the Philippine Stock Exchange.


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

HITACHI ZOSEN SINGAPORE: Keppel lowers takeover price
-----------------------------------------------------
Singapore Business Times says Keppel Corporation has once
again lowered its takeover price for Hitachi Zosen
Singapore Ltd. The government-linked conglomerate will now
transfer all the assets and business of its wholly-owned
shipyard subsidiary in Tuas to Hitachi Singapore in
exchange for Hitachi Singapore shares now valued at 49.5
cents, down from 52 cents earlier. The lower price of
Hitachi Singapore shares will mean that Keppel would be
issued even more shares, giving it a 61 per cent stake
instead of 59 per cent previously.

This will leave Hitachi Singapore a free float of only 11
per cent as 28 per cent will be owned by Hitachi Zosen
Corporation of Japan. Keppel's shipyard subsidiary is
valued at $265 million.

Upon completion of the proposed merger by the end of the
year, Keppel will make an unconditional takeover offer for
Hitachi Singapore's free float of 11 per cent, paying at
least 49.5 cents for each share.


THAKRAL CORP: Results announcement
----------------------------------
A Singapore Business Times report says electronic goods
distributor Thakral Corp. yesterday reported a sharply
lower net profit of $25.9 million at the halfway mark.
Group deputy CEO Elie Baroudi also warned that the full-
year results to end-March 1999 would fall short of last
year's $70.4 million despite the traditional year-end boost
to sales.

Turnover fell 16.5 per cent to $428.4 million for the six
months ended Sept 30. Thakral generates 97 per cent of its
turnover from selling branded consumer audio-visual
electronic products in China and Hongkong.


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

CALTEX OIL: Borrows $35m to refinance debts
-------------------------------------------
The Bangkok Post reports ABN-Amro Bank has arranged a five-
year, US$35-million syndicated loan facility for Caltex Oil
(Thailand) Ltd. The agreement was the second such deal
arranged by ABN-Amro for Caltex this year. A three-year,
$95-million syndicated loan was completed in May.

As with the previous arrangement, the new loan is supported
by a full guarantee issued by the Caltex Petroleum Co of
the United States. Proceeds from the deal will be used
exclusively to refinance existing short-term debt.

Other international banks joining ABN-Amro in funding the
loan were Credit Agricole Indosuez and KBC Bank NV as
senior managers; and Den Danske Bank Aktieselskab and
Landesbank Schleswig-Holstein Girozentrale as managers.

"This loan facility arranged with ABN-Amro is an important
step as Caltex Thailand continues to strengthen operations
in the Thai market," said Gerry Greer, director of Caltex
Thailand.


THAI OIL: Stops interest payment ahead of talks
-----------------------------------------------
The Bangkok Post reports Thai Oil Co, the financially-
troubled oil refiner, has suspended servicing its debts
totalling US$1.85 billion (73 billion baht) pending
negotiations later this month on a debt restructuring
package with 124 creditors.

The debts comprise 56 billion baht in offshore borrowings
and 17 billion baht in onshore loans, all without
collateral. Thai Oil is required to pay monthly interest
totalling about 500 million baht and, next year, is
scheduled to pay back about $300 million in principal.

Before the financial crisis enveloped Thailand, Thai Oil
was a good payer. Last year it repaid 15 billion baht in
principal and interest.

However, in the fiscal year ending last September, it
suffered a loss of 8.8 billion baht. Last week the company
told its creditors that it was at the end of the road
financially and debt restructuring was needed.


THAI PETROCHEMICAL: Firm in debt to equity deal
-----------------------------------------------
A report on the SCMP says that Thai Petrochemical Industry
(TPI) has struck a deal with creditors to swap part of its
massive debt to equity, which according to Chief Executive
Prachai Leophairatana would enable its 140 local and
overseas creditors to convert US$330 million into a 30
per cent stake in the company. He said the company was
calling for a December 2 meeting with creditors to seek
their final approval and discuss details.

The company has outstanding debts of $3 billion of which $1
billion is owed by cement unit TPI Polene. Mr Prachai said
the debt-to-equity swap would reduce the average interest
rate the company paid on its debt to 6 to 7 per cent from
10 per cent. He said that if creditors approve the plan,
TPI's 10 billion baht credit line would be renewed. He also
said the initial agreement on the debt-to-equity-swap
required the company not to expand investment for up to
five years.


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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forwarding, electronic re-mailing and photocopying) is
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The TCR -- Asia Pacific subscription rate is $875 per
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$25 each.  For subscription information, contact
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            * * * End of Transmission * * *