TCRAP_Public/981120.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      

      Friday, November 20, 1998, Vol. 1, No. 191

                    Headlines


* C H I N A   &   H O N G   K O N G *

CHINA FUJIAN DEVELOPMENT: Receives liquidation order
FAIRYOUNG HOLDINGS: Chief sees amicable end to litigation
HOP KIN ENGINEERING: Receives liquidation order
HORIZON LINK TRANSPORTATION LIMITED: Winding-up petition
LAI SUN DEVELOPMENT: Asset sales to reduce gearing

LUEN CHEONG TAI: Cuts to debt set for Luen Cheong Tai
MANSION HOLDINGS: Exchange censures former directors
YAN CHIM KEE INVESTMENTS LIMITED: Winding-up petition  


* J A P A N *

AIFUL CORP: Moody's lowers issuer rating
AOKI CORP: Five-year restructuring plan announced
FUJI ELECTRIC: Results announcement
TAKEFUJI CORP: Moody's lowers senior credit ratings


* K O R E A *

HANBO STEEL: US may bring charges to WTO
IL-SUK STONE: Workout program canceled
KIA MOTORS: Hyundai claims new Kia debt
TONG-IL HEAVY INDUSTRY: Workout program canceled


* M A L A Y S I A *

ASAH INDAH SDN BHD: Winding-up petition
AZAMS MAZMIN SDN BHD: Winding-up petition
CHAMPION SHOPPING CENTRE SDN BHD: Winding-up petition
HOK CHEONG MANUFACTURING SDN BHD: Winding-up petition
MARIGOLD MARKETING SDN BHD: Winding-up petition

METROPOLE DEVELOPMENT SDN BHD: Winding-up petition
MUTIARA SWISSCOM BHD: Results - 31/10/98
UPPER MERIDIAN SDN BHD: Winding-up petition
WIJAYA KANCHING SDN BHD: Winding-up petition


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

PHILIPPINE AIRLINES: Deadline for rehabilitation extended


* S I N G A P O R E *

ABR HOLDINGS: Announces rights issue
JURONG TOWN CORP: Citicorp will manage JTC debt program


* T H A I L A N D *

MODERNFORM: Furniture company sees Thailand as base
NATION MULTIMEDIA: New warrants offered to employees
PADAENG INDUSTRY: New Padaeng chief pushes reforms


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

CHINA FUJIAN DEVELOPMENT: Receives liquidation order
----------------------------------------------------
The Asian Wall Street Journal reports that China Fujian
Engineering Development Ltd. was placed under receivership
last Tuesday, and that Deloitte Touche Tohmatsu was named
as the provisional liquidator. This construction firm is an
unlisted company of the China Fujian Cooperation for
International Techno-Economic Corporation, which is
reportedly an investment vehicle for the Fujian provisional
government.


FAIRYOUNG HOLDINGS: Chief sees amicable end to litigation
---------------------------------------------------------
According to the SCMP, John Chan Boon Ning, who was
recently reinstated as chairman of property firm Fairyoung
Holdings after theft charges against him were dropped, is
contemplating various investments for the company.

Fairyoung has been embroiled in a number of financial
disputes recently. Securities firm Pacific Foundation
Finance has filed a winding-up petition against the company
and claimed $15 million in loans. However, Fairyoung
secured a High Court order stay of execution. Mr Chan said
Pacific Foundation Finance owed Fairyoung money instead and
Fairyoung is claiming $39 million from Pacific Foundation
instead.

He said Fairyoung was recalling a $20 million loan from New
China Hong Kong Financial Services - now owned by Century
City International Holdings.


HOP KIN ENGINEERING: Receives liquidation order
-----------------------------------------------
The Asian Wall Street Journal reports that Hop Kin
Engineering Development Ltd. was placed under receivership
last Monday, and that Deloitte Touche Tohmatsu was named as
the provisional liquidator. This construction company is an
unlisted company of the China Fujian Cooperation for
International Techno-Economic Corporation, which is
reportedly an investment vehicle for the Fujian provisional
government.


HORIZON LINK TRANSPORTATION LIMITED: Winding-up petition
--------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Horizon Link Transportation Limited by the High Court of
Hong Kong was, on the 3rd day of November, 1998, presented
to the said Court by Pui Ho Cheung 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.  


LAI SUN DEVELOPMENT: Asset sales to reduce gearing
--------------------------------------------------
According to the SCMP, debt-ridden Lai Sun Development and
its parent have agreed to sell its residential-commercial
site in Shamshuipo to textile and property tycoon Chen Din-
hwa for $88.7 million, a loss of $153 million on book. Mr
Chen owns 18.18 per cent of Lai Sun Development through
privately run Nan Fung Textiles Consolidated.

Lai Sun said the proceeds from the disposal would be used
to repay debt or for general working capital. Lai Sun has
been selling assets to reduce gearing estimated at close to
50 per cent.


LUEN CHEONG TAI: Cuts to debt set for Luen Cheong Tai
-----------------------------------------------------
According to the SCMP and the Hong Kong Standard, civil
engineering group Luen Cheong Tai International Holdings,
which is facing $40.9 million contingent liabilities not
provided, hopes to reduce debt and replenish working
capital by raising a net $31.5 million through its initial
public offering today. The company is offering 40 million
new shares while controlling shareholders -- chairman Chan
Man-chuen, managing director Vong Pak-cheong and their
family members -- will sell 10 million existing shares at
$1 a share.

The company, which earns most of its income from landslip-
prevention work, plans to spend $10 million of the proceeds
cutting debt of $48 million and another $10 million
replenishing cash on hand, which amounts to only $7.5
million. The remainder will be used to finance existing
contracts for landslip-prevention work.

According to the SCMP, Executive director Richard Mak Kwun-
yiu denied shareholders had any plan to use their stakes in
Luen Cheong Tai as collateral for personal loans. The
company expects net profit for the year to next May to grow
12 per cent from $35.74 million in the year to May this
year.


MANSION HOLDINGS: Exchange censures former directors
----------------------------------------------------
According to the Hong Kong Standard, Mansion Holdings is a
fire-fighting company now facing heavy financial problems.

The Stock Exchange of Hong Kong yesterday censured four
former directors -- Henry Lam Kwong-tat, William Leung Wai-
chung, Danny Tung Kin-bun and Jason Yip Chi-fun -- for
breaching Exchange Listing Rules by being involved in
transactions between the company and two associated
companies of Mansion, namely MPS Holdings and Mansion
Centres (China) in 1995.

The first transaction related to Mansion giving guarantees
to banks totally some $30 million as at Dec 31, 1995 in
respect of general banking facilities operated by MPS. The
second transaction related to a wholly-owned subsidiary of
Mansion making a series of loans to MPS, with the
outstanding amount, also as at Dec 31, 1995 at about $46
million. The third transaction concerned loans to MCCL,
with $15 million outstanding as at the end of 1995.

The three transactions amounted to 11 per cent, 17 per cent
and 6 per cent of Mansion's net assets respectively,
according to the stock exchange. The company was not
censured.


YAN CHIM KEE INVESTMENTS LIMITED: Winding-up petition  
-----------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Yan Chim Kee Investments Limited by the High Court of
Hong Kong was, on the 26th day of October, 1998, presented
to the said Court by Kwok Shun Cheong and the petition is
heard on 9th day of December, 1998. Other creditors who
support or oppose the making of the order may appear at the
time of the hearing.  


=========
J A P A N  
=========

AIFUL CORP: Moody's lowers issuer rating
----------------------------------------
Moody's Investors Service lowered the issuer rating of
Aiful Corp., a Kyoto-based consumer lender, to Baa2 from
Baa 1. Consumer credit companies may see earnings
deteriorate if the economy fails to recover soon from its
worst recession in more than five decades, Moody's said.


AOKI CORP: Five-year restructuring plan announced
-------------------------------------------------
According to a Kyodo News report, midsize construction
contractor Aoki Corp. announced Thursday a new five-year
restructuring program featuring the halving of its  
workforce and requests to creditors to waive a total of 200
billion yen in liabilities. Aoki said it will scrap or
merge three nonessential businesses such as hotel operation
in five years from fiscal 1999, starting next April 1.

It will also liquidate group companies with latent losses
and, as the biggest measure of all, will slash jobs to cut
the number of workers on its payroll to around 1,350 by
March 31, 2002, Aoki said.

Aoki officials said that two of Aoki's major creditor banks
-- Asahi Bank and the Industrial Bank of Japan (IBJ) --
have basically approved the new reconstruction plan, and
agreed to write off a combined 160 billion yen in loans.

Aoki is negotiating with other creditors to waive claims or
lower interest rates on the remaining 40 billion yen in
liabilities to reach the 200 billion yen goal in the
restructuring plan, the officials said.

The contractor has some 670 billion yen in liabilities of
its own and its group companies to about 30 financial
institutions.


FUJI ELECTRIC: Results announcement
-----------------------------------
Fuji Electric Co., a major producer of electric machinery,
posted a consolidated net loss of 4.56 billion yen ($37.7
million) for the first half ended Sept. 30, swinging from  
a year-earlier profit of 3.28 billion yen. It  blamed its
result on flagging demand and its softer product prices.

First-half sales fell 16% to 374.39 billion yen Fuji
Electric said domestic demand remained weak and that the
economic turmoil in Asia and Russia worsened the export
environment.


TAKEFUJI CORP: Moody's lowers senior credit ratings
---------------------------------------------------
Takefuji Corp., Japan's largest consumer-credit company,
has had its senior credit ratings cut by Moody's Investors
Service on concern loan defaults will expand along with the
nation's unemployment and bankruptcies. The US credit-
rating company downgraded Tokyo-based Takefuji's senior
debt and issuer ratings to A3 from A2. Consumer credit
companies may see earnings deteriorate if the economy fails
to recover soon from its worst recession in more than five
decades, Moody's said.


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

HANBO STEEL: US may bring charges to WTO
----------------------------------------
Yonhap News Agency reports prompted by complaints from the
US steel industry and the Congress, the US government may
bring an action to the World Trade Organization (WTO)
against Hanbo Steel on charges that the steel maker
received government subsidies.

The US complained that the Korean government provided a
subsidy of 5.8bn US dollars to Hanbo Steel, and 670m
dollars subsequently, after the steel maker went bankrupt.
The Korean government denied it paid the subsidy, saying
that the funds were loans provided by banks.

Both the US Congress, and the steel industry requested
Washington curb steel imports from Korea because the Korean
government pressured the Pohang Iron and Steel Co. to cut
export prices to the US by 30 per cent from the
international market price through its practice of paying
subsidies to steel makers, inflicting serious damage to the
US steel industry.


IL-SUK STONE: Workout program canceled
--------------------------------------
The Korean language Maeil Kyungje reports that the
creditors of Il-suk Stone Co. have disapproved the
company's workout target status. The creditors, including
Cheil bank, have made this decision because of the fact
that the company's debt is beyond any reasonable pay-back
schedule or means. This decision is in accordance with the
"Corporation Restructuring Agreement- Operation Rule" made
last July when Korea introduced the workout target
selection program. However, this is one of the first two
cases in which the Rule has been applied.


KIA MOTORS: Hyundai claims new Kia debt
---------------------------------------
According to the Hong Kong Standard, Hyundai said yesterday
it had unearthed additional debt which not only surpasses
10 per cent of the deficit between assets and liabilities
but of more than 800 billion won owed by the failed Kia
Motors and Asia Motors.

In an apparent bid to reassure potential bidders, Kia
creditors have promised to offer a further debt write-off
in case the unearthed debt is larger than 10 per cent of
the asset-liability deficit. An official of the Korea
Development Bank dismissed the allegation by Hyundai as a
tactic to obtain an additional debt write-off.

According to the report in the Korea Herald, creditors will
now be forced to organize another asset review to confirm
the new debt figure. This may delay the signing by Hyundai
of a stock purchase agreement scheduled for December 1.


TONG-IL HEAVY INDUSTRY: Workout program canceled
------------------------------------------------
The Korean language Maeil Kyungje reports that the
creditors of Tong-il Heavy Industry Co. have disapproved
the company's workout target status. The creditors,
including Cheil bank, have made this decision because the
of fact that the company's debt is beyond any reasonable
pay-back schedule or means. This decision is in accordance
with the "Corporation Restructuring Agreement- Operation
Rule" made last July when Korea introduced the workout
target selection program. However, this is one of the first
two cases in which the Rule has been applied.


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

ASAH INDAH SDN BHD: Winding-up petition
---------------------------------------
Tenaga Nasional Bhd on 21/1/98 petitioned for the winding-
up of Asah Indah Sdn Bhd. The petition is directed to be
heard on 8/1/99.


AZAMS MAZMIN SDN BHD: Winding-up petition
-----------------------------------------
Selangor Industrial Corporation Sdn Bhd on 25/8/98
petitioned for the winding-up of Azams Mazmin Sdn Bhd.
The petition is directed to be heard on 2/12/98.


CHAMPION SHOPPING CENTRE SDN BHD: Winding-up petition
-----------------------------------------------------
Guan Soon Heng Marketing Sdn Bhd on 5/10/98 petitioned for
the winding-up of Champion Shopping Centre Sdn Bhd. The
petition is directed to be heard on 15/12/98.


HOK CHEONG MANUFACTURING SDN BHD: Winding-up petition
-----------------------------------------------------
Precision Tube Product (M) Sdn Bhd on 6/11/98 petitioned
for the winding-up of Hok Cheong Manufacturing Sdn Bhd.


MARIGOLD MARKETING SDN BHD: Winding-up petition
-----------------------------------------------
Kilang Batu Tampin Sdn Bhd on 28/7/98 petitioned for the
winding-up of Marigold Marketing Sdn Bhd. The petition is
directed to be heard on 18/12/98.


METROPOLE DEVELOPMENT SDN BHD: Winding-up petition
--------------------------------------------------
Datuk Bandar Kuala Lumpur on 28/10/98 petitioned for the
winding-up of Metropole Development Sdn Bhd. The petition
is directed to be heard on 5/2/99.


MUTIARA SWISSCOM BHD: Results - 31/10/98
----------------------------------------
Mutiara Swisscom Bhd (a telecommunications company listed
on the KLSE) posted a group pre-tax loss of RM62.9mil for
the 6months ended 31/10/98, an increase against a previous
loss of RM30.8mil. The loss was attributable to higher
interest costs and depreciation charges.


UPPER MERIDIAN SDN BHD: Winding-up petition
-------------------------------------------
Public Bank Bhd on 12/9/98 petitioned for the winding-up of
Upper Meridian Sdn Bhd. The petition is directed to be
heard on 10/12/98.


WIJAYA KANCHING SDN BHD: Winding-up petition
--------------------------------------------
Binatech Engineering on 13/11/98 petitioned for the
winding-up of Wijaya Kanching Sdn Bhd.


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

PHILIPPINE AIRLINES: Deadline for rehabilitation extended
---------------------------------------------------------
The Asian Wall Street Journal reported that the Philippine
Securities Exchange Commission (SEC) has extended the
deadline for submission of a rehabilitation plan by the
Philippine Airlines (PAL) from November 20 to December 7.
This was done to accommodate the investment of Hong Kong's
Cathay Pacific Airways in PAL. The SEC also noted that all
of PAL's creditors were amenable to an extension.


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

ABR HOLDINGS: Announces rights issue
------------------------------------
Ice-cream parlour operator ABR Holdings plans to raise $24
million from its shareholders to cut its debt and raise
working capital. In a statement last night the company said
it proposed a renounceable rights issue of 97.55 million
new ordinary shares at 25 cents per share.

Subject to the normal approvals, the issue will be made on
the basis of two rights shares for every one existing share
at a price which represents a discount of 79.2 per cent on
yesterday's closing price of $1.20. However, on Sept 25 the
ABR share price was trading at just 56 cents before a
sudden surge in volume saw it leap to a high of $1.65 on
Oct 21.

The company said last night the net proceeds of the issue,
which will be underwritten by DBS Bank, would amount to
about $24 million, $10m of which would be used to discharge
bank borrowings, and a further $4.1 million of which would
be used to repay shareholder loans. The balance of about
$9.9 million would be used as working capital and to fund
expansion. Pending deployment, it said, the proceeds may be
deposited with banks and financial institutions or invested
in money market instruments.


JURONG TOWN CORP: Citicorp will manage JTC debt program
-------------------------------------------------------
Jurong Town Corp. said it appointed Citicorp Investment
Bank to manage its S$4 billion (US$2.5 billion) medium-term
debt program. Citicorp is one of seven primary dealers of
Singapore government bonds and is a major player in
Singapore government securities.

JTC, which manages industrial estates it in Singapore, said
it will issue the debt in stages, the first of which will
comprise a S$300 million seven-year fixed rate bond issue.
The company didn't say what the coupon would be, but added
that it would be higher than the Singapore dollar a fixed
deposit rate, which is about 4.5%.


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

MODERNFORM: Furniture company sees Thailand as base
---------------------------------------------------
The Bangkok Post reports American furniture-maker Steelcase
International Inc has bought a 25% stake in Modernform
Group Plc and plans to use Thailand as its Asian production
base.

Steelcase paid about 300 million baht for its holding in
Modernform Group, expanding on ties forged three years ago
when the American company hired the Thai firm to make some
products for export to Japan.


NATION MULTIMEDIA: New warrants offered to employees
----------------------------------------------------
The Nation reports Nation Multimedia Group Plc, publisher
of The Nation and Krung Thep Thurakit, is to launch 3.55
million warrants as an exclusive offer to employees and
some executives as part of a compensation package for the
loss of wages and benefits.

The company, in a filing to the stock exchange, said the
five-year warrants, which are not tradeable and will not be
listed, are structured to allow holders to subscribe to its
common stocks at a ratio of 1:1 at Bt10 apiece. Of all the
warrants, 830,800 units will be offered to some of the
company's directors and the remaining 2.71 million units to
the employees.

The warrant package, drawn up by Phatra Thanakit Plc, the
financial advisor, is designed for exercise in five years,
the first batch of which will account for about 50 per cent
of the total, followed by 15 per cent in the second year,
15 per cent in the third year, 10 per cent in the fourth
year and 10 per cent in the final year.


PADAENG INDUSTRY: New Padaeng chief pushes reforms
--------------------------------------------------
The Nation reports Padaeng Industry Plc (PDI) is being
forced to restructure its core business, new president and
chief executive officer Brett Lambert said Tuesday. Lambert
was appointed PDI's president and CEO six weeks ago,
replacing Arsa Sarasin.

PDI released its financial statement for the first three
quarters, which showed total revenue of Bt4.45 billion, 33
per cent higher than for the same period of last year. Its
sales volume totalled 73,073 tonnes, an increase of 19 per
cent. The company reported a net profit of Bt543.17
million.

According to PDI, write-offs were made on the value of
advances and loans to non-core subsidiaries, that resulted
in a net loss of Bt6.88 million on an equity accounting
basis.


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.  

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            * * * End of Transmission * * *