TCRAP_Public/981203.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      

      Thursday, December 3, 1998, Vol. 1, No. 199

                    Headlines


* C H I N A   &   H O N G   K O N G *

CONCORDIA PAPER: De-listing and declaration of insolvency
HWA KAY THAI HOLDINGS: Hwa Kay Thai eyes resumption
PEREGRINE FIXED INCOME: Peregrine sued over $334m swap
UDL HOLDINGS: Winding-up petition adjourned
WHARF (HOLDINGS): Funding woes prompt share slide


* J A P A N *

CHUO TRUST: Merger with Nippon set for next October
JDC CORP: Collapse highlights survival battle
LONG TERM CREDIT: Drops plan to forgive affiliates' debts
MITSUBISHI HEAVY: Expects 59% fall in FY98 profit
NIPPON CREDIT: Merger with Chuo Trust set for next October


* K O R E A *

HANJUNG: Announces international auction
KIA MOTORS: Hyundai affiliates to help with Kia purchase
POHANG IRON: Signs Y30 Bn tied-loan pact
SAMSUNG MOTORS: To be swapped in big deal
SEORYUNG INDUSTRY: Notice to creditors

TONG-IL GROUP: More details on group workout suspension
WOOSUNG TIRE: Woosung Tire liquidates


* M A L A Y S I A *

ACCURATE TRADING (K.L.) SDN BHD: Voluntary winding-up
BLISSCO (M) SDN BHD: Voluntary winding-up
COSWORTH MANAGEMENT SERVICES SDN BHD: Winding-up petition
DECOPLANTS TECH SDN BHD: Winding-up petition
GELIGA LAND & GENERAL SDN BHD: Winding-up petition

JIAN CHENG SDN BHD: Voluntary winding-up
KU AH MING & SONS SDN BHD: Voluntary winding-up
MALAYSIAN AIRLINE: Tajudin assured he will stay
MON CHER SDN BHD: Voluntary winding-up
MUSTRALITE SDN BHD: Winding-up petition

NEW STRAITS TIMES PRESS: Results announcement
POLY EQUIPMENT AND APPLIANCES SDN BHD: Winding-up petition
RHB-SIME BANK: Danamodal could be 49% owner of group
RASHID HUSSAIN BHD: Rashid will retain control
TV3: Results announcement


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

PHILIPPINE AIRLINES: Finance Corp. interested in stake
SAN MIGUEL: Tan accused of tax evasion
SERG'S PRODUCTS: SEC extends chocolate maker's debt relief


* S I N G A P O R E *

FIRST CAPITAL: Proposes additional rights issue
SCOTTS INVESTMENTS: Placed under judicial management
TAT LEE INSURANCE: Approval for takeover by Keppel Group


* T H A I L A N D *

ALPHATEC: AIG and Ericsson to take 80% stake
BANGKOK BANK: BBC begins to draw its shutters
CMIC FINANCE: Central bank accuses Suthep of irregularities
CAPETRONIC: Share issue to raise B385m
SAHAVIRIYA OA: Acer to purchase major stake

SHINAWATRA GROUP: Revamp makes SC&C holding company
SIAM AGRO: Del Monte in talks to buy Rayong plant
THAI FARMERS BANK: S&P assigns 'B plus' long-term
THAI OIL: PTT worries it cannot save Thai Oil


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

CONCORDIA PAPER: De-listing and declaration of insolvency
---------------------------------------------------------
Concordia Paper (Holdings) Limited (Nasdaq: CPLNY) was
notified on November 27 that it will be de-listed from the
Nasdaq Stock Market at the close of business on Wednesday,
December 2, 1998.

Although a self-rescue plan received initial support from
most of the secured lenders and the unsecured bank
creditors, the Bank of Tokyo-Mitsubishi Limited (BOTM),
being the agent for the secured lenders and also the
biggest single creditor of CPL, rejected the plan. On
November 18, 1998, BOTM exercised its rights under the loan
agreement for the term loan facility and placed CPL into
receivership.

"The self-rescue plan proposed by the Company's principal
shareholders could have saved CPL but unfortunately it did
not receive unanimous support," said Mr. Albert Cheng, the
Chairman of the Company and CPL.

As the holding company of CPL, the Company has guaranteed
CPL's loan obligations. In May 1997, the Company entered
into a guarantee and indemnity agreement with the secured
lenders to guarantee CPL's US$47.2 million term loan
facility. In connection with the guarantee, a fixed charge
was created over all the assets of the Company in favor of
the secured lenders. The charge has been registered by
BOTM, as agent for the secured lenders, in Bermuda, the
Company's country of domicile. In August 1998, the Company
also entered into a guarantee agreement with The Hongkong
and Shanghai Banking Corporation Limited ("Hongkong Bank")
in connection with the extension of an unsecured working
capital facility to CPL subject to a maximum liability of
HK$45 million.

On November 27, 1998, the Company received a letter of
demand from BOTM, on behalf of the secured lenders, for
repayment by the Company, as guarantor, of the total amount
of US$47.2 million and all the accrued interest. On
November 28, the Company received another demand note dated
21 November 1998 from Hongkong Bank demanding payment by
the Company, also under its obligation as guarantor of CPL,
of the total sums of HK$19,360,689.85 and US$2,946,209.33
owed by CPL.

Since CPL is the Company's principal operating subsidiary,
the receivership of CPL has adversely affected the
financial position of the Company. The Company has no
liquid assets and the only fixed asset is a paper machine
(PM3) which the Company acquired in January 1995. The
current written down value of PM3 is substantially less
than the Company's current liabilities.

At the Company's Board of Directors meeting held on
November 30, 1998, the Directors determined that the
Company was insolvent and was unable to pay its debts as
they fell due. Following the Board of Directors meeting
held on November 30, 1998, the Company notified BOTM and
Hongkong Bank that it is insolvent and unable to pay the
amounts demanded. The Company expects that in due course
these creditors will take action to liquidate the Company's
assets in partial satisfaction of the Company's outstanding
debt.

The Company also announced the resignation of James Grant
as a Director effective on November 18, 1998 and the 7
other outside Directors effective on November 30, 1998. The
Company now maintains a board of three directors after
these resignations.


HWA KAY THAI HOLDINGS: Hwa Kay Thai eyes resumption
---------------------------------------------------
According to the South China Morning Post, Hwa Kay Thai
Holdings will apply to resume trading today, after
announcing a financial restructuring which will see
independent third party Patrick Wong, through his wholly
owned Shine United, inject $60 million for about 57 per
cent of the company. Trading was suspended on Nov 23.


PEREGRINE FIXED INCOME: Peregrine sued over $334m swap
------------------------------------------------------
According to the South China Morning Post, liquidators have
vowed to fight a lawsuit launched by Commerzbank, which
claims Peregrine Fixed Income failed to meet its payment
obligations under a 73 million deutschemark swap
transaction.

The transaction was carried out on Jan. 9, just one working
day before Peregrine filed for liquidation. Time
differences between the European and New York exchanges
meant that Commerzbank carried out the first leg of the
swap, but Peregrine did not meet its payment due the same
day in New York, it is claimed. Despite rumors in the
market, it is alleged Peregrine directors were giving
positive signals.

Hong Kong solicitor Camille Jojo, a partner at Barlow Lyde
& Gilbert, who is heading the Commerzbank action, said that
the case is still at a formative stage. Both sides are in
the discovery stage of exchanging the necessary documents.


UDL HOLDINGS: Winding-up petition adjourned
-------------------------------------------
According to the South China Morning Post, marine civil
engineering firm UDL Holdings said the winding-up petition
by K.Y.H. Steel against UDL Argos has been adjourned until
Jan. 11, the date of the next hearing of a similar petition
by Hongkong Bank against UDL. The winding-up petition
against UDL Kenworth presented by Ajax Pong Machinery
Leasing was adjourned until Dec 21.


WHARF (HOLDINGS): Funding woes prompt share slide
-------------------------------------------------
According to the South China Morning Post, Wharf (Holdings)
slid 5.71 per cent to $11.55 per share after executive
director John Hung revealed it has had difficulty in
raising new funds amid tight liquidity in the banking
industry and the depressed equity market. It is believed
that Wharf is looking to issue a bond backed by second
mortgages it granted on the sale of flats at its Galaxia
development. Standard & Poor's and Moody's Investors
Service have downgraded Wharf's credit risk to the bottom-
end of the investor-grade scale.


=========
J A P A N  
=========

CHUO TRUST: Merger with Nippon set for next October
---------------------------------------------------
According to the South China Morning Post, Chuo Trust and
Banking has held merger talks with the troubled Nippon
Credit Bank to an alliance to survive Japan's deepening
banking crisis. Trading in the two banks was temporarily
suspended on the Tokyo stock exchange yesterday. Reports
said the two plan to merge in October next year. The
Yomiuri Shimbun said the two will look at details before
the end of the year. Chuo Trust president Shozo Endoh is
expected to assume the new bank's top position and both
the government and the central Bank of Japan would provide
support for the alliance.

But analysts said a merger between the two would not bring
a stronger bank without significant restructuring and large
injections of public money.

Chuo Trust focuses on pension fund management and the real
estate business while Nippon Credit is a lender to industry
and was set up in 1975 to finance Japan's post-war economic
revival.

Chuo Trust has said it is facing a group pretax loss of 32
billion yen this year and it would ask for just 130 billion
yen while most other leading banks will take up to 500
billion yen each to prop up their capital and help speed
write-offs.


JDC CORP: Collapse highlights survival battle
---------------------------------------------
Japan's economic and banking woes claimed another corporate
victim Tuesday when medium-sized general contractor JDC
Corp. sought bankruptcy protection under the weight of its
1980s "bubble era" debt, according to a Reuters report.

"We are now seeing the real beginning of liquidation
resulting from the bursting of the bubble," said Toshihiko
Yamazaki, a director of leading credit research firm Tokyo
Shoko Research Ltd. "Now is the actual start of selection
of those who can survive and those who are to be
eliminated."

The Tokyo-based builder filed for court protection from
creditors, with debts totaling 406.72 billion yen ($3.31
billion), the second-biggest ever failure in Japan's
construction industry after last year's collapse of Tokai
Kogyo Co. Ltd.

JDC said its finances had deteriorated due to an increase
in claims receivable for large projects such as golf
courses and also due to failures in affiliates' investments
in real estate after the collapse of the late 1980s
asset bubble.

JDC may have been small enough for creditor bank Mitsui
Trust & Banking Co. Ltd. to let go, as it could not afford
to bail out both its borrowers -- JDC and Mitsui
Construction Co., he said.

"The consensus here is that there are tremendous levels of
excess capacity in the construction industry and that there
are quite a number of companies whose existence,
particularly in the current form, really is questionable,"
Alicia Ogawa, head of research at Salomon Smith Barney in
Tokyo, told Reuters Television.

Shares in JDC, listed on the Tokyo Stock Exchange's first
section, were suspended from trading Tuesday. The shares,
due to be delisted on March 2, had ended at 65 yen Monday.


LONG TERM CREDIT: Drops plan to forgive affiliates' debts
---------------------------------------------------------
According to a Kyodo News report, failed Long-Term Credit
Bank of Japan (LTCB) will give up a plan to forgive 266.3
billion yen in debts of two of its three major affiliated
non-bank financing companies, sources close to LTCB said
Wednesday. The two non-banks are Japan Landic Corp. and
Nippon Enterprise Development Corp. On Aug. 21, LTCB
unveiled a plan to waive claims on the debts of the two as
well as those of Japan Leasing Corp. worth 520 billion yen
in closing its midterm books for the April-September half
of fiscal 1998.

The government defended the plan as a scheme to help many
other banks with huge credits to the non-banks avoid
incurring losses, as the non-banks' failures would mean
huge losses for the creditors.

If the non-banks fail, the government used to argue, many
corporate borrowers with large debts to the non-banks would
be required to repay their debts quickly, which could
bankrupt them and hurt the economy.

But the debt-forgiveness plan drew vehement flak in the
Diet from the opposition, which blasted it as a mere
bailout of the non-banks, whose accounting practices they
also rapped as murky.

The non-banks, which have largely depended on LTCB for
resources to lend, hold huge bad real estate loans extended
during the asset-inflated bubble economy that began in 1986
and collapsed in the early 1990s.


MITSUBISHI HEAVY: Expects 59% fall in FY98 profit
-------------------------------------------------
Nikkei English News reports Mitsubishi Heavy Industries
Ltd. will likely see consolidated group net profit plunge
59% to 25 billion yen for the year through March, company
sources said Tuesday. At the start of the current term the
company had forecast a 22% increase to 74 billion yen.
Group pretax profit is projected to fall 45% to 74 billion
yen. A group net loss of 26 billion yen by Mitsubishi
Motors Corp. will generate an evaluation loss of about 7
billion yen on Mitsubishi Heavy's shareholding in that
firm.


NIPPON CREDIT: Merger with Chuo Trust set for next October
----------------------------------------------------------
According to the South China Morning Post, Chuo Trust and
Banking has held merger talks with the troubled Nippon
Credit Bank to an alliance to survive Japan's deepening
banking crisis. Trading in the two banks was temporarily
suspended on the Tokyo stock exchange yesterday. Reports
said the two plan to merge in October next year. The
Yomiuri Shimbun said the two will look at details before
the end of the year. Chuo Trust president Shozo Endoh is
expected to assume the new bank's top position and both
the government and the central Bank of Japan would provide
support for the alliance.

But analysts said a merger between the two would not bring
a stronger bank without significant restructuring and large
injections of public money.

Chuo Trust focuses on pension fund management and the real
estate business while Nippon Credit is a lender to industry
and was set up in 1975 to finance Japan's post-war economic
revival.

Nippon Credit, one of Japan's two remaining long-term
credit banks, has built up huge bad loans that are
threatening its business. For the year to next March the
bank has warned that it was facing a colossal 620 billion
yen group pretax loss for the full year. It said it would
write off 735 billion yen in bad loans this year. A Nippon
Credit spokesman said there was no merger agreement.


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

HANJUNG: Announces international auction
----------------------------------------
Digital ChosunIlbo reports Korea Heavy Industries &
Construction (HANJUNG) plans to make an announcement on the
schedule for its international auction at the end of
January at earliest, according to a government source
Monday. General Electric of the United States has already
expressed interest in taking over the state-run enterprise,
and several others including Asean Brown Bovari, Combustion
Engineering, and Siemens have been moving ahead with
preparations to participate in the auction in consortium
with Korean companies.

On the local front, the Hyundai Business Group plans to
enter the bidding in consortium with world-famous companies
in the heavy industry sector. Samsung is eager to jump in
the race in case it is forced to turn over its fledgling
auto sector through the restructuring measures for nation's
top five business groups.

The timetable for the auction, according to a government
official in charge, will be to announce the bidding in
January 1999 and to conclude the bidding process by the end
of June.


KIA MOTORS: Hyundai affiliates to help with Kia purchase
--------------------------------------------------------
According to the South China Morning Post, Hyundai Motor
completed its acquisition of Kia Motors, sharing the 1.18
trillion won cost with four affiliates. Hyundai Motor will
pay 40 per cent, or 471 bllion won, of the total price to
buy 51 per cent of Kia and its Asia Motors affiliate. The
rest will come from Hyundai Heavy Industries, Hyundai
Industrial Development and Construction, Inchon Iron &
Steel and Hyundai Financial Services. As part of  the
takeover, Hyundai agreed to assume 6.39 trillion won of Kia
debts.

Hyundai said it would shut down unneeded production lines
and reduce Kia's 17,000-member workforce. Some analysts
expect Hyundai to have a hard time absorbing Kia.

According to the Hong Kong Standard, Hyundai Motor chairman
Chung Mong Gyu and Kia chairman Yoo Chong Yul signed the
contract yesterday with payment due in late March. Hyundai
is paying 841.5 billion won for its stake in Kia Motors and
336.6 billion won for Asia Motors, the auctioning panel at
Kia said.

Mr Chung said Hyundai's inspection team and a foreign
consulting firm are currently working on a normalisation
plan which will be announced in the near future, and with
the agreement signed, foreign investment will be actively
sought.

Several other member firms of the group are taking part in
the Kia deal. Hyundai Motor will pay 40 per cent of the
purchase price. Hyundai Heavy industries will pitch in 20
per cent, Hyundai Industry Development and Construction 15
per cent, Inchon Iron and Steel 15 per cent and Hyundai
Financial Services 10 per cent.

Lee Keun Young, president of Kia's main creditor Korea
Development Bank, was required to submit repayment
schedules this week. They have to be approved by Kia
creditors this month.


POHANG IRON: Signs Y30 Bn tied-loan pact
----------------------------------------
Digital ChosunIlbo reports Pohang Iron and Steel Corp.
(POSCO) announced Tuesday that it had signed an agreement
with the Export-Import Bank of Japan (JEXIM) to attract a
30-billion yen facility loan. The signing ceremony was held
the same day at the JEXIM head office in Tokyo. The tied
loan has an interest rate of 2.3% per annum and will be
used by the steel manufacturing giant to settle payments
for various equipment purchases from Japanese manufacturers
until the end of March 2002.


SAMSUNG MOTORS: To be swapped in big deal
-----------------------------------------
The Digital ChosunIlbo reports a high-ranking official from
the presidential office officially confirmed Wednesday that
Samsung Motors has been discussed as part of the business
swaps to take place in the restructuring of the nation's
five top business groups. The official added that an
affiliate of one of the five groups is moving ahead with
negotiations for a merger or absorption, hinting that
Samsung Business Group is willing to surrender its
automobile sector in exchange of another company's business
in a different line. The official did not, however, go into
details of the companies involved.


SEORYUNG INDUSTRY: Notice to creditors
--------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Seoryung Industry Company will hold
a meeting of its creditors on January 14 in order to
discuss the company's liquidation plan. The company's
address is Chung 2-dong, Haewoondae-gu 1, Pusan, and the
representative is Mr. Shin Cheol-gyun.


TONG-IL GROUP: More details on group workout suspension
-------------------------------------------------------
The Korea Herald reported that conflict between creditor
banks and large shareholders lead to the ruling by the
Korean government's Corporate Restructuring Coordination
Committee (Kiop-kujo-jojong-uiwonhoe) to suspend the
workout procedure for four Tong-il Group affiliates. The
affiliates are Hanguk Titanium Company, Ilshin Stone
Material Company, Ilsung Construction Company, and Tong-il
Heavy Industry Company. These companies had been under a
workout program since July 20, but creditor banks and large
shareholders could not agree on how to provide financial
assistance for these companies.  

This suspension of the workout procedure automatically
ended the debt repayment grace period provided by the
creditor banks. Hence, the group, which is owned by
Reverend Moon Sun-myung and his Unification Church, had
to seek court protection.  

Similar reports in the Asian Wall Street Journal say that
of these four groups, Ilshin Stone Material Company, Ilsung
Construction Company, and Tong-il Heavy Industry Company
are now bankrupt in that they have failed to pay a maturing
note two days in a row.


WOOSUNG TIRE: Woosung Tire liquidates
-------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Woosung Tire Company would be
liquidated. The company's address is 11-7 Nohyung-dong,
Kangnam-gu, Seoul, and the representative is Mr. Yi
Seung-chae.


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

ACCURATE TRADING (K.L.) SDN BHD: Voluntary winding-up
-----------------------------------------------------
The members of Accurate Trading (K.L.) Sdn Bhd on 26/11/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 30/12/98.


BLISSCO (M) SDN BHD: Voluntary winding-up
-----------------------------------------
The members of Blissco (M) Sdn Bhd on 23/11/98 resolved to
wind-up the company voluntarily. Creditors are requested to
submit their claims before 2/1/99.


COSWORTH MANAGEMENT SERVICES SDN BHD: Winding-up petition
---------------------------------------------------------
The Embassy of Finland on 21/7/98 petitioned for the
winding-up of Cosworth Management Services Sdn Bhd.
The petition is directed to be heard on 13/1/99.


DECOPLANTS TECH SDN BHD: Winding-up petition
--------------------------------------------
Park World Recreation Sdn Bhd on 3/11/98 petitioned for the
winding-up of Decoplants Tech Sdn Bhd. The petition is
directed to be heard on 25/2/99.


GELIGA LAND & GENERAL SDN BHD: Winding-up petition
--------------------------------------------------
Wesaw Trading Sdn Bhd on 27/11/98 petitioned for the
winding-up of Geliga Land & General Sdn Bhd.


JIAN CHENG SDN BHD: Voluntary winding-up
----------------------------------------
The members of Jian Cheng Sdn Bhd on 24/11/98 resolved to
wind-up the company voluntarily. Creditors of the company
are required to submit their claims before 2/1/99.


KU AH MING & SONS SDN BHD: Voluntary winding-up
-----------------------------------------------
The members of Ku Ah Ming & Sons Sdn Bhd on 26/11/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 30/12/98.


MALAYSIAN AIRLINE: Tajudin assured he will stay
-----------------------------------------------
Singapore Business Times cites a Bloomberg report that
Tajudin Ramli, executive chairman of Malaysian Airline       
Systems Bhd, told analysts he's not selling his controlling       
stake in MAS, saying he's been assured by the government
that he can remain "for a long, long time". Mr Tajudin's
comments came at the end of his five-minute opening remarks
during an analysts' briefing at MAS' staff-training centre
outside Kuala Lumpur. Mr Tajudin, who owns a 29 per cent
controlling stake in MAS, barred journalists from
yesterday's meeting.

Yesterday's briefing comes after MAS announced on Monday a
bigger-than-expected loss of 441.1 million Malaysian
ringgit (S$191.1 million) for the six months ended Sept 30.
The airline lost money for the second consecutive six-month
period, as its foreign debts soared, compounding a drop in
revenues from falling passenger traffic.

Mr Tajudin has for long been talked about by analysts as a
likely beneficiary of a government bailout to help him keep
control of MAS, amid the airline's mounting foreign debt
and financial losses.


MON CHER SDN BHD: Voluntary winding-up
--------------------------------------
The members of Mon Cher Sdn Bhd on 24/11/98 resolved to
wind-up the company voluntarily. Creditors are requested to
submit their claims before 2/1/99.


MUSTRALITE SDN BHD: Winding-up petition
---------------------------------------
Teknopuri Sdn Bhd on 2/11/98 petitioned for the winding-up
of Mustralite Sdn Bhd. The petition is directed to be heard
on 13/1/99.


NEW STRAITS TIMES PRESS: Results announcement
---------------------------------------------
Singapore Business Times reports once-dominant newspaper
group New Straits Times Press Bhd has, for the first time
this decade, plunged into the red with a pre-tax loss of
25.35 million Malaysian ringgit (S$11 million) for the year
ended Aug 31, 1998. NSTP had reported profits of RM180
million a year earlier.

Publishing group NSTP saw its business hit from all sides.
Turnover slipped 10 per cent to RM755 million for the year.
It suffered a loss at the operating level, and reported a
loss per share of 13 sen, compared to an EPS of 79 sen a
year ago.

NSTP's management said its flagging fortunes were caused by
substantial "provisions for the diminution of value of
investments held by insurance subsidiaries". On an
operational level, NSTP saw its operating profit margin
sliced from 21.5 per cent to 4.7 per cent on the back of
falling advertising revenue.

But analysts said the figures do not tell the whole story:
NSTP, they say, has been losing the battle to hold on to
its circulation, with more people getting their news on the
Internet, and with the surge in readership for Harakah, the
paper published for opposition PAS members.

According to one analyst, the broadsheet New Straits Times'
circulation has fallen substantially from a high of 177,000
copies a day, with readership said to have been drawn away
by Harakah. The latter is said to have had a five-fold
increase in circulation to 300,000.

NSTP's declining fortunes has had an impact on its
bottomline. The numbers show that the company cannot meet
the interest on its borrowings of RM82.4 million. According
to an analyst, a company official has said NSTP is
considering selling assets, including its overseas
apartments.


POLY EQUIPMENT AND APPLIANCES SDN BHD: Winding-up petition
----------------------------------------------------------
PhileoAllied Bank (Malaysia) Bhd on 23/10/98 petitioned for
the winding-up of Poly Equipment And Appliances Sdn Bhd.
The petition is directed to be heard on 19/2/99.


RHB-SIME BANK: Danamodal could be 49% owner of group
----------------------------------------------------
Malaysia's Danamodal Nasional Bhd -- an agency set up by         
the government to help re-capitalise cash-strapped banks         
-- could eventually own between 44 and 49 per cent in RHB-
Sime Bank, a government official said yesterday.

According to Singapore Business Times, which cites a
Bloomberg report, Danamodal on Monday bought 30 per cent of
RHB Bank's parent company RHB Capital Bhd for 725.4 million
Malaysian ringgit (S$314 million) cash, and bought RM1.5
billion worth of preference shares in RHB Bank.

The move came as RHB founder and executive chairman Abdul
Rashid Hussain ceded control of his flagship financial
services company Rashid Hussain Bhd, after it reported a
loss of RM935.85 million.

If Danamodal converts all its preference shares, it could
control 49 per cent of the country's second-largest
financial services group, with up to five positions on
RHB's management board, the official said.

Mr Rashid will retain his chairmanship of the bank,
although a new chief executive officer will be named.


RASHID HUSSAIN BHD: Rashid will retain control
----------------------------------------------
Prominent financier Abdul Rashid Hussain yesterday       
assured fund managers that he will remain in control of the       
financial empire he built over the last 15 years, although
he will no longer be the largest shareholder of his group,
Rashid Hussain Bhd (RHB).

Singapore Business Times reports in a conference call with
fund managers yesterday evening, Mr Rashid said the new
major shareholder -- Pahang State Economic Development
Corporation (PSEDC) -- has allowed RHB's management to stay
onboard. He added that the Pahang Chief Minister Mohd
Khalil Yaacob said he would leave Mr Rashid and his team to
provide leadership to the group.

On Monday, Mr Rashid said he will remain as chairman of RHB
and the executive chairman of the group's financial arm RHB
Capital, and continue to lead the strategic direction of
the group. However, the RHB board will appoint a new chief
operating officer to manage the day-to-day operations of
PSEDC's assets.

Two days ago, RHB unveiled a massive 3.3 billion Malaysian
ringgit (S$1.4 billion) recapitalisation plan through asset
injection, issuance of new shares and other debt
instruments, and the sale of a 30 per cent stake in RHB
Bank to Danamodal in an attempt to address the high gearing
and improve its balance sheet.

The asset injection by the PSEDC worth RM530 million, in
exchange for 189.3 million new RHB shares, will result in
PSEDC becoming the single largest shareholder in RHB with a
29 per cent stake.

RHB was hit by a RM935.8 million net loss for the year
ended June 30, 1998, after taking in a loan and financing
loss and provision of RM1.3 billion. RHB Capital posted a
net loss of RM651.7 million for the 18 months ended June
30, 1998, after deducting provisions of RM1.3 billion.


TV3: Results announcement
-------------------------
TV3 suffered an operating loss of RM112 million, down from
a profit of RM748,000 last year, according to Singapore
Business Times. This means a loss per share of 96 sen,
compared to earnings per share of 8 sen last year. Turnover
fell 4 per cent to RM268.98 million. The company blamed its
losses on the economic slowdown which hurt advertising
revenues; rising costs and higher domestic interest rates
in the first six months. Human resource costs also jumped
with a one-off RM14 million transfer to a retirement scheme
for staff who voluntarily retire.

TV3's moves to stop the bloodletting in its finances
include retiring 600 staff in July, downsizing the
operations of its subsidiaries, and cutting transmission
hours from 24 to 21.5 hours in August.


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

PHILIPPINE AIRLINES: Finance Corp. interested in stake
------------------------------------------------------
According to the South China Morning Post, Philippine
Estrada Joseph Estrada yesterday said World Bank arm
Finance Corp was interested in investing US$15 million to
$23 million in PAL for an 8 to 12 per cent stake, with or
without Cathay as a partner.

In Cathay's latest issue of its staff newsletter, corporate
development director Tony Tyler asked the airline's staff
for their moral support in its bid to take control of PAL.
Mr Tyler acknowledged concerns about PAL but he also said
PAL will be a much smaller airline as the unprofitable
routes will be cut and its debts can be restructured to
make the airline a viable concern. He said the amount of
investment needed was smaller than previously expected and
would be funded internally.


SAN MIGUEL: Tan accused of tax evasion
--------------------------------------
A business brief in the Wall Street Journal says the
government filed a tax evasion case against San Miguel
chairman Lucio Tan. It alleges the executive owes the
government hundreds of millions in unpaid taxes. Mr. Tan
earlier denied the charges.


SERG'S PRODUCTS: SEC extends chocolate maker's debt relief
----------------------------------------------------------
The Securities and Exchange Commission (SEC) has granted
chocolate maker Serg's Products, Inc. another 30-day
reprieve from its creditors. In an order issued last
Friday, the SEC said it granted Serg's the additional 30-
day debt relief on the basis of the firm's recent petition
asking for an extension. The first 30-day debt relief
granted by the SEC expired November 30. The three-man SEC
hearing panel said there is a need for the SEC to act on       
Serg's petition seeing "the extreme urgency" in Serg's  
situation. The 30-day lead time, however, is short of the
60-day extension Serg's sought from the SEC.


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

FIRST CAPITAL: Proposes additional rights issue
-----------------------------------------------
With 200 million preference shares due for redemption in
seven months, property group First Capital Corp (FCC)
yesterday proposed another issue of non-redeemable
preference shares to raise $87 million to ease its heavy
debt burden and tight cashflow, according to Singapore
Business Times.

The 87.9 million 7 per cent shares will raise $87.7
million, $26.4 million of which will be used to repay
existing loans with the rest going to working capital.  
With a par value of S$0.01 each, the NCCPS are priced at a
99-cent premium.

For the year ended June 1998, the local property developer
suffered net losses of $23.2 million and is estimated to
have about $1.2 billion in total borrowings. Property
analysts estimate its gearing level to be 1.23 times, and
generally consider it to be cash-strapped.


SCOTTS INVESTMENTS: Placed under judicial management
----------------------------------------------------
Scotts Investments (Singapore) Pte Ltd, the family trust of
the Jumabhoy family which founded listed serviced
apartments operator Scotts Holdings (Scotts), has been
placed under judicial management even as negotiations for a
takeover are ongoing.

The High Court yesterday appointed judicial managers Tay
Swee Sze and Max Loh from Arthur Andersen for the "better
realisation" of SIS' assets, which mainly are in the form
of the 84 million Scotts shares or just over a third of the
company's 237 million outstanding shares it owns.

"The company (SIS) is in an advanced stage of negotiations
with two suitors interested in purchasing all or a
substantial portion of the company's shares in the capital
of Scotts Holdings Ltd. The judicial managers will work
towards finalising the transaction on best terms," said a
statement from Arthur Andersen.

The two interested parties have been identified as
mainboard-listed engineering and property company Guthrie
GTS and Swiss restaurant and hotel operator Movenpick, and
the price being negotiated is said to be upwards of 65
cents. Scotts shares closed 1.5 cents down at 73.5 on
158,000 shares yesterday.

The appointment of the judicial managers was vigorously
opposed by lawyers for DBS Bank and Hong Leong Finance, who
felt the move would prejudice their position as the holders
of Scotts shares pledged to them by SIS, which has
accumulated losses of over $50 million and bank loans
totalling over $40 million. However, the High Court felt it
was in the interest of SIS and all creditors that the
Scotts shares were sold in a measured manner which would
not depress the value of the shares.

Listed shipping and hotel operator Hai Sun Hup, last week
aborted a deal for a 24.9 per cent stake in Scotts
following the failure of the Jumabhoys and SIS to meet its
terms and acceptance deadline. HSH also felt it was being
used by the Jumabhoys to push up Scotts shares which rose
to over 80 cents following rumours of its interest.

SIS said in June that the Jumabhoys intended to dispose of
their entire 50.6 per cent stake in the mainboard-listed
company. Anyone taking control of Scotts has to contend
with current debts of $180 million and additional
contingent liabilities of more than US$30 million (S$49
million).


TAT LEE INSURANCE: Approval for takeover by Keppel Group
--------------------------------------------------------
The insurance arms of the Keppel Group and Tat Lee Group       
have been given in-principle approval by the Monetary       
Authority of Singapore to merge. The proposed merger or,
rather, takeover by Keppel Insurance Pte Ltd of Tat Lee
Insurance Ltd is expected to be completed in the first
quarter of next year, a Keppel statement said.

The latest tie-up follows the merger earlier this year of
their parent banks, Keppel and Tat Lee. The new entity will
be called Keppel TatLee Bank.

Under the terms of the proposed merger, Keppel Insurance
will buy over the assets and businesses of Tat Lee
Insurance for $25 million in cash.

Keppel Insurance -- a joint venture between Keppel Corp (20
per cent), Keppel Bank (40 per cent) and international
financial group Fortis (40 percent) -- offers a spectrum of
general, life and investment-linked insurance products and
services to corporate and individual clients. Tat Lee, on
the other hand, is involved mainly in personal general
insurance products.

Several other units of Keppel and Tat Lee, including the
two banks' finance and securities arms, are also being
merged. Keppel Securities announced that it will pay $26.4
million for the assets and businesses of Tat Lee
Securities, minus its seat on the Stock Exchange of
Singapore. Keppel Corporation has also said it will be
looking into injecting Tat Lee's listed property arm, TLB
Land, into Keppel Land.


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

ALPHATEC: AIG and Ericsson to take 80% stake
--------------------------------------------
The Financial Times reports American International Group
and an investment  subsidiary of Sweden's Ericsson have
agreed to pay $40m for an 80 percent stake in Alphatec
Electronics, the Thai computer chip maker. The deal is
subject to creditors' approval of a restructuring plan that
calls for more than two-thirds of Alphatec's debt to be
written off.

The capital injection and debt restructuring were unveiled
yesterday at a creditors' meeting. Some creditors, Krung
Thai Bank among them, asked for amendments and the meeting
was adjourned until December 8, when creditors must vote on
the proposal.

According to the Nation, the restructuring plan, presented
to the creditors Tuesday, was completed by
PriceWaterhouseCoopers together with Credit Agricole
Indosuez Banque and creditors. The process took 12 months.

Tuesday, PriceWaterhouseCoopers, or the planner under the
new bankruptcy law, presented the plan to over 200
creditors, who requested debt repayments totalling US$373
million. The planner asked the creditors to agree on the
proposed debt restructuring because the process is
necessary given that Alphatec's debt to asset ratio is
excessively high. While its liabilities topped $373
million, it has only $78 million in total assets.

Under the corporate restructuring plan, the planner said
that Alphatec could set up a holding company, which in the
future could be registered in a foreign country and listed
on a foreign stock market. The holding company will also
own 100 per cent in a Thai company which will be
established in the future.

The new Thai company will transfer all assets of Alphatec
after the latter reduces its capital from Bt3.7 billion to
Bt370, and the new company will handle debt payments. As of
June 4, the unaudited total assets of Alphatec topped Bt3.4
billion, including Bt579 million in current assets. Its
liabilities reached Bt15.35 billion while the net worth is
Bt11.95 billion. It is estimated that debt obligations
could rise by Bt314 million.

The Nation also reports three Thai banks, two of which are
major creditors of Alphatec, Tuesday postponed their vote
on Alphatec's debt restructuring plan for a week over
concerns of alleged fraud by former company management that
could involve legal action.

Creditor sources said under the amended business
rehabilitation law, there can be no legal recourse against
alleged fraud involving personal guarantors if the
rehabilitation plan is approved by the majority of
creditors.

The creditors will face heavy losses because only 20 per
cent of the loans will be paid back.

Major creditors have alleged fraud was committed by the
company's former management. Sources said the creditors
intend to maintain their right to pursue legal action
against the alleged wrongdoers, especially personal
guarantors.

Under the amended business rehabilitation law, the
liability of debtors and personal guarantors is limited
after creditors and debtors agree to court supervised
rehabilitation. For a plan to be passed, it must be
approved by creditors holding at least 75 per cent of the
debt and from at least half of the creditors.

Alphatec owes a total of US$362 million (about Bt13
billion) to financial institutions. State owned Krung Thai
Bank holds the largest debt of Bt4.23 billion, followed by
Bangkok Bank's Bt1.47 billion and Union Bank of Bangkok's
Bt390 million.

Tuesday's meeting was the first by creditor banks.
The board of Krung Thai Bank will shortly hold a meeting to
discuss the bank's position.


BANGKOK BANK: BBC begins to draw its shutters
---------------------------------------------
The Bangkok Post reports the Bangkok Bank of Commerce
formally began the process yesterday of creating a new
asset-management company. Yesterday was also officially the
last day of work for the institution's 4,000-plus staff.
But 1,475 of them will be retained in the new asset-
management company, which will be responsible for
collecting and managing outstanding debts and liquidating
remaining assets.

The bank, which was at the centre of a huge fraud scandal
two years ago, was ordered closed as part of the
government's financial reform programme announced in
August.

Aswin Kongsiri tendered his resignation as bank president,
but he remains chairman of the board.

At a meeting on Monday, the board outlined the basic
structure of the new company. It will have 15 divisions,
the most important being asset development and management.


CMIC FINANCE: Central bank accuses Suthep of irregularities
-----------------------------------------------------------
According to the Bangkok Post, the Bank of Thailand
yesterday filed police charges against Suthep Wongwaraseth,
former president of CMIC Finance and Securities, accusing
him of irregularly extending loans totalling more than 300
million baht to four borrowers. A senior central bank
official confirmed that Mr Suthep, who is also a senator,
was the target, although assistant governor Rattakorn
Nimwatana declined to reveal the name.

The central bank told financial institutions to freeze Mr
Suthep's assets and asked the police and immigration
authorities to bar the senator from leaving the country,
the official said.

Mr Rattakorn said the CMIC executive had approved loans to
four companies, without collateral, between January 29,
1996 and May 10, 1997. He declined to identify the
companies, but said they were on the same floor of a
building in Bangkok. All four were established with
registered capital of one million baht each only days
before they obtained loans from CMIC. Mr Rattakorn said
evidence showed that the four companies did not operate
any business and were not in a position to service debt.
The loans owed by the four companies totalled 318.76
million baht. In granting loans to the companies, CMIC did
not seek any collateral or analyse their ability to repay,
although it knew the firms were inactive, he said.

The loans had been approved before the firms were legally
established. Some money had been lent before the approvals
and, in some cases, the funds had exceeded the authorised
amounts.

Mr Suthep headed what was once one of Thailand's largest
finance companies. It was among the 56 permanently closed
last December.

The company used to tell customers that it was a subsidiary
of Thai Farmers Bank. However, when it was listed among the
troubled firms, the bank said it had only a minor stake in
CMIC and refused to provide new funds to ensure its
survival. Instead, Thai Farmers Bank invested in Phatra
Thanakit.


CAPETRONIC: Share issue to raise B385m
--------------------------------------  
The Bangkok Post reports Capetronic International plans to
issue just over 89 million new shares at 4.3 baht each to
raise 385 million baht to repay long-term debt and provide
working capital, managing director Ma Chi Chiu said
yesterday.

A meeting of shareholders is scheduled on December 30 to
approve the rights issue. "With our gearing substantially
reduced, we believe we will be in a better position to face
the challenges expected next year," Mr Chiu said. The books
will close at noon on December 15 until end of the
shareholders' meeting to determine rights entitlements.


SAHAVIRIYA OA: Acer to purchase major stake
-------------------------------------------
Citing a Bloomberg report, Singapore Business Times says
the Singapore unit of Taiwan-based Acer Inc has signed an       
agreement to buy a major stake in Sahaviriya OA plc, one of       
Thailand's largest computer distributors. The investment
would be through Acer Computer International Ltd, a
Singapore-based retailing unit of Taiwan's biggest computer
producer. The investment would "make Acer the No1 brand in
Thailand's information technology market", Sahaviriya said
yesterday.

The size of Acer's planned investment was not disclosed.
The consideration process is expected to be completed
within 45 days, Sahaviriya said.

Creditors' approval is crucial, as Sahaviriya is insolvent,
according to its auditor, Supot Singhasaneh, of Peat
Marwick Suthee Ltd. "As at Sep 30, the company and its
subsidiaries had total liabilities exceeding total assets
of 3.57 billion baht (S$162.9 million)," the auditor said
in a report.

Sahaviriya OA is controlled by the Viriyaprapaikit family,
which is also the controlling shareholder of Sahaviriya
Steel Industry plc. Sahaviriya Steel defaulted in July on a
US$3.85 million (S$6.3 million) bond coupon payment.


SHINAWATRA GROUP: Revamp makes SC&C holding company
---------------------------------------------------
The Shinawatra Group yesterday announced a corporate
restructuring aimed at turning its main listed company,
Shinawatra Computer and Communications Plc (SC&C) into a
holding company, according to the Bangkok Post. The new
structure will allow SC&C to hold shares in all its
subsidiaries and to focus solely on telecommunications
investments.

The group promoted Boonklee Plangsiri to become chairman of
the group's executive board, succeeding Paiboon
Limpaphayom. Mr Boonklee will also serve as president of
SC&C. Mr Paiboon will become chairman of the executive
board of Advanced Info Service, the group's mobile-phone
subsidiary. The changes will take effect on January 1.

The Shinawatra Group said in a statement that the
restructuring would encourage greater flexibility in the
management of all its subsidiaries. It would also introduce
good corporate governance and help the group meet the
challenges of future communications liberalisation.


SIAM AGRO: Del Monte in talks to buy Rayong plant
-------------------------------------------------
The Bangkok Post reports Del Monte Foods International is
negotiating to buy Siam Agro Industry's Rayong pineapple
cannery from the Thai firm's major creditor, Thai Farmers
Bank, according to Niphond Wongta-ngan, director of the
Public Warehouse Organisation (PWO). The result of the
negotiations is expected to be known this month.

If the negotiations between Del Monte and Thai Farmers Bank
reached an agreement, the PWO would ask Del Monte to help
process some of its pineapple stocks, Mr Niphond said.
Siam Agro Industry (Saico) has suspended production at the
factory because of its financial problems. The cannery can
process about 200,000 tons of pineapple a year.


THAI FARMERS BANK: S&P assigns 'B plus' long-term rating
--------------------------------------------------------
Standard & Poor's yesterday assigned a 'B plus' long-term
rating to existing 7.5 billion baht in subordinated
debentures issued by Thai Farmers Bank and due in 2001. The
debentures, issued in 1994, carry a coupon rate of 9.875%.
The US-based agency also affirmed the bank's long-term
counterparty rating of 'BB' and short-term counterparty
range of 'B'. The rating outlook remained negative.
"Poor asset quality and profitability continue to place all
Thai banks under severe capital pressure, supporting the
negative outlook assigned," S&P said.


THAI OIL: PTT worries it cannot save Thai Oil
---------------------------------------------
The Nation reports even though debt ridden Thai Oil Co Ltd
stopped repaying its US$1.9 billion loan early last month,
it will find it difficult to survive if the world crude oil
price remains low. The losses that Thai Oil has accumulated
will affect the financial performance of the Petroleum
Authority of Thailand (PTT), which holds a 49 per cent
stake in the refinery. The PTT has to pay Bt4 billion for
crude oil to run the Thai Oil refinery and will receive
refined oil in return, and Thai Oil will benefit from a
gross refinery margin (GRM).

The company earlier blamed its low capital base and the low
refining margin for the company's "standstill arrangement",
announced to its 124 creditors last month.

The executive said the problem is made more difficult
because of excess supply in the region.

If the world oil market worsens, the PTT will have to
reconsider its planned funding for the survival of Thai
Oil. The PTT planned to reduce its interests in other
refineries and acquire a larger share in Thai Oil.

"PTT might offer the Thai Oil refinery to interested
investors if it cannot shoulder the burden. This would be
regrettable because it is the best refinery, with the
lowest GRM," said the executive.


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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