/raid1/www/Hosts/bankrupt/TCRAP_Public/981209.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, December 9, 1998, Vol. 1, No. 203

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS: Nam Tai subscription completed
CHINA DEVELOPMENT: Firm 'not affected by bankruptcy'
CHUNG HWA DEVELOPMENT: Confirms negotiations on credit
FINE RICH INVESTMENT: Winding-up petition
G-PROP (HOLDINGS): Warrants set to expire

HAYES ASIA-PACIFIC: Closes its HK office
HWA KAY THAI: Proposed capital restructuring by Shine
INTERFORM CERAMICS TECHNOLOGIES: Ceramics rescue delayed
KEL HOLDINGS: Winding-up petitions adjourned
LEADING SPIRIT (HOLDINGS): Leading Spirit shares plunge

NEW BEST RESTAURANT LIMITED: Winding-up petition
Q-TECH HOLDINGS: Settles claim with supplier
SIU-FUNG CERAMICS: Wife sues chairman on $280m home stake
TIAN AN CHINA: Proposed rights issue with new warrants
UDL HOLDINGS: Winding-up petitions adjourned


* I N D O N E S I A *

PT DHARMALA AGRIFOOD: Court says Dharmala not bankrupt


* J A P A N *

COSMO SECURITIES: Daiwa Bank may write off Cosmo loans
OKI ELECTRIC: Moody's lower credit rating to junk


* K O R E A *

DAEWOO: Top chaebols agree to reorganize
HYUNDAI: Top chaebols agree to reorganize
LG: Top chaebols agree to reorganize
SK: Top chaebols agree to reorganize
SAMSUNG: Top chaebols agree to reorganize

SSANGYONG GROUP: Restructuring challenges values


* M A L A Y S I A *

BINAJARAS (M) SDN BHD: Winding-up petition
EURO-SPEED PLASTIC INDUSTRIES SDN BHD: Winding-up petition
LPY CONSTRUCTION SDN BHD: Winding-up petition
MALAYSIAN AIRLINE SYSTEM BHD: Results - 30/9/98
MALAYSIAN RESOURCES CORP: Results announcement

MALRATTAN SDN BHD: Winding-up petition
PAN MALAYSIAN INDUSTRIES BHD: Results - 30/9/98
PERUSAHAAN SADUR TIMAH: Unable to make payments
RASHID HUSSAIN: May place out some of its RHB Capital stake
REDIFFUSION BHD: Results - 30/9/98

RENONG BHD: Analysts say government will back bailout plan
VITCO TRADING (PENANG) SDN BHD: Winding-up petition


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

AMEROP PHILIPPINES: Sugar firm may sue Gokongwei-owned mill
PHILIPPINE AIRLINES: PAL calls for US$150m in new capital
PHILIPPINE LONG DISTANCE: First Pacific to double equity
PHILREALTY: Explains it has no debts with DMCI, Universal


* S I N G A P O R E *

FRASER & NEAVE: Could be hit by provisions from property
SHOWPLA ASIA: Receiver for Showpla Asia unit named


* T H A I L A N D *

SEMICONDUCTOR VENTURES: Presents rehabilitation plan
SIAM CEMENT: No need for new foreign tie-ups
TISCO FINANCE: Deutsche Bank takeover clouds Tisco


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

ALBATRONICS: Nam Tai subscription completed
-------------------------------------------
Further to the joint announcement by the boards of
directors of Albatronics (Far East) Company Limited and Nam
Tai Electronics, Inc. on 27th November, 1998, the directors
of Albatronics announced the completion of the subscription
giving Nam Tai 200,002,000 shares, representing just more
than 50% of the enlarged issued share capital of
Albatronics.

Mr. Tadao Murakami, Mr. Ming Kown Koo, Mr. Shigeru
Takizawa, Mr. Charles Chia Chin Chu, Ms. Kuen Ling Wong and
Mr. Motoo Shigemori have been nominated by Nam Tai and
appointed to the Albatronics Board. To facilitate certain
administrative functions of Albatronics, Mr. Murakami and
Mr. Koo have been appointed as executive directors instead
of non-executive directors as stated in the Circular. Mr.
Takizawa, Mr. Chu, Ms. Wong and Mr. Shigemori have been
appointed as non-executive directors as stated in the
Circular.

Mr. Sang Ho Shim, whose nomination and appointment was not
proposed in the Circular, has also been appointed as an
executive director to the Albatronics Board. Mr. Yoshihiro
Yasukawa, Mr. Hoon Hai Mah and Mr. Wing Leung Lai, Willie
have resigned from the Albatronics Board effective today.

The Albatronics Board now comprises 12 members, namely the
seven newly appointed directors mentioned above and Mr.
Kaizo Wakaki (Chairman), Mr. Fukumori Nakahara (managing
director) and Mr. Keiichi Ogura as the existing executive
directors; and Mr. Ching Cheung Chan, Edward and Mr. Tat
Ming Lui as the existing independent non-executive
directors of Albatronics.


CHINA DEVELOPMENT: Firm 'not affected by bankruptcy'
----------------------------------------------------
According to the South China Morning Post, property concern
China Development Corp yesterday said it would not be
affected by the bankruptcy petition by substantial
shareholder Sukamto Sia, who has beneficial interest of
about 20.3 per cent of the company both directly and
through Dynasty Line. The petition, which was filed in
Hawaii on Nov 6, gave the court jurisdiction of his assets
in and outside the United States. The company said he had
no assets related to China Development other than his
shareholding.


CHUNG HWA DEVELOPMENT: Confirms negotiations on credit
------------------------------------------------------
Chung Hwa Development Holdings Limited has informed the
Stock Exchange of Hong Kong that its business is still
viable and has announced that they have been engaged in
negotiations with an independent third party since late
November, 1998 for a possible injection which may or may
not proceed, of new business and/or capital into the
Company. The Company is currently in negotiation with its
bankers and creditors for debt restructuring or longer
repayment term for the outstanding amounts estimated to be
HK$60.9 million. The Company is also considering the
appointment of a financial adviser to review the current
financial position for restructuring the Company's
indebtedness.

A writ of summons has been issued against the Company on
20th October, 1998 from a company listed on the Stock
Exchange of Hong Kong, Millennium Group Limited, claiming
for HK$9.5 million being the guarantee made by the Company
for its non-wholly owned subsidiary, Vincent Honour Ltd.
The Company expects to file defences and a possible
counterclaim to contest the proceedings on or before 31st
December, 1998.

The Company received another writ on 21st November, 1998
from The Sumitomo Bank, Limited claiming for HK$20.7
million for breach of contractual obligations under the
joint and several guarantee made by the Company to
facilitate a long-term loan granted to its associate
company Favourite Limited in 1996. The Company is seeking
legal opinions as to the appropriate course of actions to
be taken.

On 25th November, 1998, LEPI had made an announcement that
it had appointed legal counsel to file its claim against
its joint-venture partner, Hua Nan Enterprises, which has
unilaterally taken actions resulting in the cessation of
production of its joint-venture company, Dongguan Walford
Ornament Packaging Co. Ltd. The Company is in negotiations
with LEPI and Hua Nan Enterprises for solving the
production and management problems.

In view of the current position of the Group and the
announcement made by LEPI, the Company requested suspension
of trading at 10:00 a.m. on 25th November, 1998 and it
intends to resume trading in its shares on the Stock
Exchange at 10:00 a.m. on 2nd December, 1998.


FINE RICH INVESTMENT: Winding-up petition
-----------------------------------------
A petition for the winding up of Fine Rich Investment
Limited was presented to the High Court on Nov 16 by Fong
Tat Ming No. 707, Ming Shun Village, Tui Min Hoi, Sai Kung,
New Territories , and the said petition is directed to be
heard before the court on Dec 23, and any creditor or
contributory of the said company desirous to support or
oppose the making of an order on the said petition may
appear at the time of hearing by himself or his counsel for
that purpose, and a copy of the petition will be furnished
to any creditor or contributory of the said company
requiring the same by Tam Lee Po Lin, Nina for Director of
Legal Aid, 27th Floor, Queensway Government Offices, 66
Queensway, Hong Kong, on payment of the regulated charges
for the same.


G-PROP (HOLDINGS): Warrants set to expire
-----------------------------------------
G-Prop (Holdings) Limited has informed the Stock Exchange
of Hong Kong that subscription rights attaching to the 1998
Warrants are expected to expire at the close of business on
31st December, 1998. The last day for trading in the 1998
Warrants are expected to be the close of business on 24th
December, 1998. Listing of the 1998 Warrants is expected to
be withdrawn at the close of business on 31st December,
1998.

Trading in the 1998 Warrants on The Stock Exchange of Hong
Kong Limited will cease after the close of business on
Thursday, 24th December, 1998.

As referred to in the announcement dated 26th November,
1998 issued by the Company in relation to the capital
reorganisation of the Company, there will be a postponement
of the expected effective date of, and hence, a change in
the proposed timetable for, the capital reorganisation.


HAYES ASIA-PACIFIC: Closes its HK office
----------------------------------------
According to the South China Morning Post the SAR-based
headquarters of popular modem maker Hayes Asia-Pacific has
closed, but sources say local Hayes executives are
scrambling to launch a new company under a different name.
Hayes customers can continue to get service and support for
modems through distributors. Hong Kong-based Hayes
officials were not available for comment. The US-based
parent company declared bankruptcy in mid-November.

Michael Lee, managing director of Tech Pacific Hong Kong,
Hayes' largest SAR distributor, was confident that a new
company handling Hayes products would open.

"I expect it will be the same people from Hayes right now,
running under a different name," he said.

Kaifa Technology, an SAR-based electronics maker and former
investor in Hayes in the US, is talking with former Hayes
Asia-Pacific executives about backing the new firm.

Meanwhile, the supply of Hayes products had been "slightly
interrupted" for the past two weeks, but there should be no
other effect on consumers, Mr Lee said.

Hayes has strong local ties. SAR-based electronics
manufacturers Wong's International and Kaifa were part of a
consortium that bought up 49 per cent of Hayes in April
1996 to rescue the firm during an earlier bankruptcy. Both
Wong's and Kaifa produce modems for Hayes. But that rescue
coalition seems to have dissolved, with at least one
partner, Kaifa, selling out its estimated 16 per cent stake
this summer to an undisclosed party, according to an
executive at Kaifa. At about the same time, Kaifa stopped
manufacturing modems for Hayes as unpaid bills - totalling
millions of dollars - mounted.


HWA KAY THAI: Proposed capital restructuring by Shine
-----------------------------------------------------
An Investment Agreement was entered into on 21st November
1998 between Hwa Kay Thai Holdings Limited and Shine United
International Inc. The Investment Agreement involves a
subscription of new Consolidated Shares by Shine United for
$60,000,000 in cash, which is conditional on, inter alia,
the completion of the Capital Restructuring and the Debt
Restructuring. Based on the existing records of the
Company, it is estimated that Shine United will own
approximately 57% of the issued share capital of the
Company immediately upon Completion.

If the Company is unable to restructure its indebtedness
and enter into the Compromise Agreement with Puma, its
bankers and Yee Hing or to complete the Investment
Agreement, the Company will have a negative net asset value
and will be insolvent and may go into liquidation.

Subject to obtaining the applicable regulatory approvals,
if required, the Investor is entitled to nominate a special
manager to obtain information relating to the business,
financial and trading conditions of the Group prior to
Completion. The special manager will have no management
role in the Company.

The bank loans secured by the properties of the Group will
be restructured so that they are repayable from the
proceeds of disposals of the relevant secured properties.
At the close of business on 31st August 1998, the Group had
total outstanding borrowings of approximately $418 million,
comprising bank borrowings of approximately $143 million
and other borrowings of approximately $275 million. The
bank borrowings comprised secured bank loans and overdrafts
of approximately $69 million; and unsecured bank loans and
overdrafts of approximately $74 million. The open market
value of the Group's properties charged to the banks was
approximately $78 million as at 31st March 1998. For the
purpose of computing the estimated shareholdings structure
of the Company immediately upon Completion, it is assumed
that the aggregate amount of unsecured indebtedness owing    
to banks, PUMA and Yee Hing immediately prior to Completion
is approximately $238 million.


INTERFORM CERAMICS TECHNOLOGIES: Ceramics rescue delayed
--------------------------------------------------------
According to the South China Morning Post, tile-maker
Interform Ceramics Technologies and potential rescuer China
Wealth Group have decided to extend the latest date for the
execution of a formal subscription agreement under a
restructuring proposal. The date for the execution of the
agreement will be extended to December 21, or later.


KEL HOLDINGS: Winding-up petitions adjourned
--------------------------------------------
UDL Holdings Limited and KEL Holdings Limited have provided
Stock Exchange of Hong Kong with updates concerning two
winding-up petitions against UDL Argos Engineering & Heavy
Industries Co., Limited, a wholly-owned subsidiary of UDL;
and UDL Kenworth Engineering Limited, a wholly-owned
subsidiary of KEL. UDL is the beneficial owner of
300,000,000 shares of HK$0.10 each in KEL, representing 75%
of the issued share capital of KEL.

At the hearing concerning the winding-up petition presented
by K.Y.H. Steel Co., Limited against UDL Argos, the
Honourable Mrs. Justice Le Pichon ordered, inter alia
(among other things), that the said petition be adjourned
with the next hearing fixed at 11th January, 1999, which is
the same date of the next hearing of the winding-up
petition presented by The Hongkong and Shanghai Banking
Corporation Limited against UDL as previously announced on
23rd November, 1998.

Concerning the winding-up petition presented by Ajax Pong    
Machinery Leasing Limited against UDL Kenworth, the
petition is in relation to an amount of HK$317,465.93. At
the hearing on 30th November, 1998 of the said petition,
the Honourable Mrs. Justice Le Pichon ordered, inter alia
(among other things), that the said petition be adjourned
for 3 weeks with the next hearing fixed at 21st December,    
1998.


LEADING SPIRIT (HOLDINGS): Leading Spirit shares plunge
-------------------------------------------------------
According to the Hong Kong Standard, share prices of
Leading Spirit (Holdings) and its subsidiary Leading Spirit
Conrowa plunged yesterday after the removal of a directive
suspending trading. Leading Spirit (Holdings) plunged 6.5
cents or 35.7 per cent to 11.7 cents. Leading Spirit
Conrowa fell 30.7 per cent or 5.8 cents to 13.1 cents.

Brokers said the high trading volume and sharp fall in
price had been expected as many investors, both retail and
institutional, had been waiting for a long time to get out
of the stock.


NEW BEST RESTAURANT LIMITED: Winding-up petition
------------------------------------------------
A petition for the winding up of New Best Restaurant
Limited was presented to the High Court on Nov 26 by Hung
Pan Lung, Flat D, 6th Floor, 452 Queen's Road West, Hong
Kong, and the said petition is directed to be heard before
the court on Dec 30, and any creditor or contributory of
the said company desirous to support or oppose the making
of an order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by Tam
Lee Po Lin, Nina for Director of Legal Aid, 27th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong, on
payment of the regulated charges for the same.


Q-TECH HOLDINGS: Settles claim with supplier
--------------------------------------------
Q-Tech Holdings Limited has informed the Stock Exchange of
Hong Kong that in respect of the legal proceedings  
instituted by Thakral Corporation (HK) Ltd against South    
Boss Resources Limited, a wholly owned subsidiary of the
Company, for a claim of about HK$17 million, the Company
has entered into a heads of agreement with the Supplier to
settle the claim. The Company shall allot and issue 28.5
million ordinary shares of HK$0.10 each in the capital of
the Company, among other things, credited as fully paid   
in partial satisfaction of the amount due by the Subsidiary
to the Supplier.


SIU-FUNG CERAMICS: Wife sues chairman on $280m home stake
---------------------------------------------------------
According to the South China Morning Post, Siu-Fung
Ceramics chairman Siegfried Lee Siu-fung is being sued by
his wife Dusanee Lelelertsuphakun for mortgaging on
September 29, 1995 their $280 million Deep Water Bay
"matrimonial home" to the Hongkong and Shanghai Banking
Corp to secure general banking facilities without her
knowledge.

Ms Lelalersuphakun claims that the property was intended as
a matrimonial home when it was bought in 1994, and she had
a beneficial interest in it and a right to occupy it
although it was bought in Mr Lee's name and he paid 35 per
cent of the price with the rest funded by a mortgage. She
claimed that she had contributed to paying for the mortgage
and other fees for the home. She is also suing the bank for
not asking of her beneficial interest before claiming in
writing of the right to sell and/or take possession of the
property and is seeking an injunction against the bank for
such action.


TIAN AN CHINA: Proposed rights issue with new warrants
------------------------------------------------------
Tian An China Investments Company Limited has informed the
Stock Exchange of Hong Kong that is proposes to raise about
HK$386 million before expenses by issuing at least
1,930,213,820 new Shares by way of rights at a price of
HK$0.20 per Rights Share. The Company will provisionally
allot one (1) Rights Share for every one (1) Share held by
Qualifying Shareholders with New Warrants in the proportion
of one (1) New Warrant for every five (5) Rights Shares
taken up. The Rights Issue is not available to Overseas
Shareholders.

The Directors intend that the capital raised by the Rights
Issue will be utilised to reduce the Group's Hong Kong
dollar based debts and as general working capital for the
Group so as to better enable the Company to take advantage
of attractive acquisition opportunities, yet to be
identified, as they arise.


UDL HOLDINGS: Winding-up petitions adjourned
--------------------------------------------
UDL Holdings Limited and KEL Holdings Limited have provided
Stock Exchange of Hong Kong with updates concerning two
winding-up petitions against UDL Argos Engineering & Heavy
Industries Co., Limited, a wholly-owned subsidiary of UDL;
and UDL Kenworth Engineering Limited, a wholly-owned
subsidiary of KEL. UDL is the beneficial owner of
300,000,000 shares of HK$0.10 each in KEL, representing 75%
of the issued share capital of KEL.

At the hearing concerning the winding-up petition presented
by K.Y.H. Steel Co., Limited against UDL Argos, the
Honourable Mrs. Justice Le Pichon ordered, inter alia
(among other things), that the said petition be adjourned
with the next hearing fixed at 11th January, 1999, which is
the same date of the next hearing of the winding-up
petition presented by The Hongkong and Shanghai Banking
Corporation Limited against UDL as previously announced on
23rd November, 1998.

Concerning the winding-up petition presented by Ajax Pong    
Machinery Leasing Limited against UDL Kenworth, the
petition is in relation to an amount of HK$317,465.93. At
the hearing on 30th November, 1998 of the said petition,
the Honourable Mrs. Justice Le Pichon ordered, inter alia
(among other things), that the said petition be adjourned
for 3 weeks with the next hearing fixed at 21st December,    
1998.


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

PT DHARMALA AGRIFOOD: Court says Dharmala not bankrupt
------------------------------------------------------
The Asian Wall Street Journal reports the Indonesian
Commercial Court rejected a bankruptcy petition filed by
the International Finance Corporation against PT Dharmala
Agrifood. The petition was filed after Dharmala, a producer
of animal feed, failed to repay loans valued at $2.1
million and $51.7 million. However, the court rejected the
petition saying that the loans had not yet fallen due. A
similar petition by the Bank Niaga was rejected since the
court ruled that this loan was actually a derivative
contract to cover foreign-currency risks, and therefore not
a true loan agreement.

The reports states that the creditors involved all insist
that the loans had been due earlier this year, and they
have yet to decide if they will appeal the court's
judgement.

The International Finance Corporation is the private
financing arm of the World Bank.


=========
J A P A N  
=========

COSMO SECURITIES: Daiwa Bank may write off Cosmo loans
-----------------------------------------------------
The Asian Wall Street Journal reports Daiwa Bank is
considering writing off half of the 60 billion yen it has
extended to two companies in the Cosmo Securities Company.  
One of these two Osaka based companies is in the
information services field, and the other is in real
estate. Daiwa, which has loaned these companies 20 billion
and 40 billion yen, respectively, has reportedly completed
an evaluation of the assets of these companies and has
found that they only have enough collateral for about half
of their borrowings.


OKI ELECTRIC: Moody's lower credit rating to junk
-------------------------------------------------
Bloomberg reports shares of Oki Electric Industry Co. fell
as much as 6 yen to 306. The maker of communications
equipment had its credit rating cut two notches to junk
status by Moody's Investors Service amid concern about its
semiconductor and telecommunications businesses.


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

DAEWOO: Top chaebols agree to reorganize
----------------------------------------
Reuters reports the top five family-run conglomerates
agreed to halve the number of companies they control and
raise a total of 70 trillion won ($58 billion). They agreed
to reduce debt-to-equity ratios to 200 percent next year
from an average of 476 percent at end-1997, partly through
debt workouts with their creditors. They pledged to conform
to international accounting practices by early 1999.

President Kim Dae-jung, who summoned the five chaebol heads
to the presidential Blue House on Monday, pronounced the
end of an era.

The Federation of Korean Industries (FKI), the powerful
lobby group for big business groups, said on Tuesday the
debt-to-equity ratio for the top five groups was expected
to fall to 317.1 percent at end-1998, against 438 percent
a year earlier. It said the debt ratio would fall further
to 200 percent by the end of 1999, as earlier promised to
the government. Cross debt guarantees among affiliates of
the chaebol fell 22 percent to 8.7 trillion won ($7.1
billion) at the end of September from 11.1 trillion won on
April 1, it said. It said the five chaebol would be able to
clear all debt guarantees by March 2000 as they earlier
pledged.

The federation said the business groups attracted a total
of $14.2 billion of foreign capital in the first 10 months
of this year, through asset sales, overseas securities
issuance, joint ventures and overseas borrowings.


HYUNDAI: Top chaebols agree to reorganize
-----------------------------------------
Reuters reports the top five family-run conglomerates
agreed to halve the number of companies they control and
raise a total of 70 trillion won ($58 billion). They agreed
to reduce debt-to-equity ratios to 200 percent next year
from an average of 476 percent at end-1997, partly through
debt workouts with their creditors. They pledged to conform
to international accounting practices by early 1999.

President Kim Dae-jung, who summoned the five chaebol heads
to the presidential Blue House on Monday, pronounced the
end of an era.

The Federation of Korean Industries (FKI), the powerful
lobby group for big business groups, said on Tuesday the
debt-to-equity ratio for the top five groups was expected
to fall to 317.1 percent at end-1998, against 438 percent
a year earlier. It said the debt ratio would fall further
to 200 percent by the end of 1999, as earlier promised to
the government. Cross debt guarantees among affiliates of
the chaebol fell 22 percent to 8.7 trillion won ($7.1
billion) at the end of September from 11.1 trillion won on
April 1, it said. It said the five chaebol would be able to
clear all debt guarantees by March 2000 as they earlier
pledged.

The federation said the business groups attracted a total
of $14.2 billion of foreign capital in the first 10 months
of this year, through asset sales, overseas securities
issuance, joint ventures and overseas borrowings.


LG: Top chaebols agree to reorganize
------------------------------------
Reuters reports the top five family-run conglomerates
agreed to halve the number of companies they control and
raise a total of 70 trillion won ($58 billion). They agreed
to reduce debt-to-equity ratios to 200 percent next year
from an average of 476 percent at end-1997, partly through
debt workouts with their creditors. They pledged to conform
to international accounting practices by early 1999.

President Kim Dae-jung, who summoned the five chaebol heads
to the presidential Blue House on Monday, pronounced the
end of an era.

The Federation of Korean Industries (FKI), the powerful
lobby group for big business groups, said on Tuesday the
debt-to-equity ratio for the top five groups was expected
to fall to 317.1 percent at end-1998, against 438 percent
a year earlier. It said the debt ratio would fall further
to 200 percent by the end of 1999, as earlier promised to
the government. Cross debt guarantees among affiliates of
the chaebol fell 22 percent to 8.7 trillion won ($7.1
billion) at the end of September from 11.1 trillion won on
April 1, it said. It said the five chaebol would be able to
clear all debt guarantees by March 2000 as they earlier
pledged.

The federation said the business groups attracted a total
of $14.2 billion of foreign capital in the first 10 months
of this year, through asset sales, overseas securities
issuance, joint ventures and overseas borrowings.


SK: Top chaebols agree to reorganize
------------------------------------
Reuters reports the top five family-run conglomerates
agreed to halve the number of companies they control and
raise a total of 70 trillion won ($58 billion). They agreed
to reduce debt-to-equity ratios to 200 percent next year
from an average of 476 percent at end-1997, partly through
debt workouts with their creditors. They pledged to conform
to international accounting practices by early 1999.

President Kim Dae-jung, who summoned the five chaebol heads
to the presidential Blue House on Monday, pronounced the
end of an era.

The Federation of Korean Industries (FKI), the powerful
lobby group for big business groups, said on Tuesday the
debt-to-equity ratio for the top five groups was expected
to fall to 317.1 percent at end-1998, against 438 percent
a year earlier. It said the debt ratio would fall further
to 200 percent by the end of 1999, as earlier promised to
the government. Cross debt guarantees among affiliates of
the chaebol fell 22 percent to 8.7 trillion won ($7.1
billion) at the end of September from 11.1 trillion won on
April 1, it said. It said the five chaebol would be able to
clear all debt guarantees by March 2000 as they earlier
pledged.

The federation said the business groups attracted a total
of $14.2 billion of foreign capital in the first 10 months
of this year, through asset sales, overseas securities
issuance, joint ventures and overseas borrowings.


SAMSUNG: Top chaebols agree to reorganize
-----------------------------------------
Reuters reports the top five family-run conglomerates
agreed to halve the number of companies they control and
raise a total of 70 trillion won ($58 billion). They agreed
to reduce debt-to-equity ratios to 200 percent next year
from an average of 476 percent at end-1997, partly through
debt workouts with their creditors. They pledged to conform
to international accounting practices by early 1999.

President Kim Dae-jung, who summoned the five chaebol heads
to the presidential Blue House on Monday, pronounced the
end of an era.

The Federation of Korean Industries (FKI), the powerful
lobby group for big business groups, said on Tuesday the
debt-to-equity ratio for the top five groups was expected
to fall to 317.1 percent at end-1998, against 438 percent
a year earlier. It said the debt ratio would fall further
to 200 percent by the end of 1999, as earlier promised to
the government. Cross debt guarantees among affiliates of
the chaebol fell 22 percent to 8.7 trillion won ($7.1
billion) at the end of September from 11.1 trillion won on
April 1, it said. It said the five chaebol would be able to
clear all debt guarantees by March 2000 as they earlier
pledged.

The federation said the business groups attracted a total
of $14.2 billion of foreign capital in the first 10 months
of this year, through asset sales, overseas securities
issuance, joint ventures and overseas borrowings.


SSANGYONG GROUP: Restructuring challenges values
------------------------------------------------
The Wall Street Journal reports on the efforts of the
Ssangyong Group, one of Korea's largest chaebols, to
restructure itself amid mounting financial pressures. The
article focuses on the chairman of the firm's flagship
cement company, Kim Suk Won, and his younger brother,
Milton Kim.

Milton Kim, chairman of the group's brokerage unit, has
been an advocate of western-style solutions for the
survival of his firm while the elder Kim favors traditional
Confucian family-first methods for dealing with financial
troubles.

The deal that was eventually struck gave H&Q Asia Pacific
the 28% controlling stake Ssangyong group had it in
securities unit. The resulting struggle has placed
Ssangyong in the forefront of restructuring. The firm has
unloaded billions of dollars of assets in auto, paper and
securities interests.


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

BINAJARAS (M) SDN BHD: Winding-up petition
------------------------------------------
MEB Marketing Sdn Bhd on 11/11/98 petitioned for the
winding-up of Binajaras (M) Sdn Bhd. The petition is
directed to be heard on 13/1/99.


EURO-SPEED PLASTIC INDUSTRIES SDN BHD: Winding-up petition
----------------------------------------------------------
Arab-Malaysian Finance Bhd on 1/9/98 petitioned for the
winding-up of Euro-Speed Plastic Industries Sdn Bhd. The
petition is directed to be heard on 8/1/99.


LPY CONSTRUCTION SDN BHD: Winding-up petition
---------------------------------------------
Perwira Affin Bank Bhd on 18/8/98 petitioned for the
winding-up of LPY Construction Sdn Bhd. The petition is
directed to be heard on 12/2/99.


MALAYSIAN AIRLINE SYSTEM BHD: Results - 30/9/98
-----------------------------------------------
Malaysian Airline System Bhd (listed on the KLSE) reported
a post-tax loss of RM439.931mil for the 6months ended
30/9/98, compared to a post-tax profit of RM24.256mil
previously. EPS fell 1,948% from 3.1sen to a loss per share
of 57.3sen.


MALAYSIAN RESOURCES CORP: Results announcement
----------------------------------------------
Singapore Business Times reports results of Malaysian
Resources Corporation Bhd were heavily weighed down by
losses in its associate companies, leading the diversified
conglomerate to report a pre-tax loss of 289.66 million
Malaysian ringgit (S$126.3 million) for its full year ended
Aug 31, 1998. MRCB said profit before its share of the
results of associate companies was RM78.28 million, down 47
per cent from a year ago. The associates caused a RM280.27
million dent on its finances.

Its 27.3 per cent stake in Rashid Hussain Bhd inflicted the
worst damage on its profit and loss account -- causing a
RM283 million loss. Its 49.5 per cent stake in publisher
New Straits Times Press Bhd and its 49.7 per cent in Sistem
Televisyen Malaysia Bhd contributed RM7.125 million and
RM82 million in losses, respectively. These losses were
partially offset by healthy profits in its power producers
- Malakoff Bhd (RM65 million) and Port Dickson Power
(RM27.35 million).

MRCB said turnover fell 48 per cent to RM638.29 million. It
reported a loss per share of 30 sen, compared to last
year's earnings per share of 25 sen.

MRCB -- which took pains to explain that its financial
misfortune was directly related to the associates' poor
performances - said its own profit of RM78.28 million was
achieved after accounting for substantial interest charges,
forex translation losses and gains from selling its power-
related assets. It said it made an interest charge of
RM151.1 million on its loans this year, and estimated its
loans at RM1.845 billion as at the end of its financial
year. It said the figure has now been reduced through the
repayment of US$100 million (S$165.7 million) on its US
dollar loan facility.

While MRCB said it expected the group's financial results
to improve "in line with the expected domestic economic
growth", its future earnings growth will be affected by
some changes. Prior to the recession, its investment in RHB
was expected to make up a substantial portion of its
earnings. Now, with pre-tax losses of RM1.5 billion at RHB
and a restructuring there, the group's stake will be
diluted to 16.1 per cent. It also had to dilute its stake
in power producer Malakoff Bhd.


MALRATTAN SDN BHD: Winding-up petition
--------------------------------------
Comfort Zone Marketing (M) Sdn Bhd on 3/11/98 petitioned
for the winding-up of Malrattan Sdn Bhd. The petition is
directed to be heard on 15/1/99.


PAN MALAYSIAN INDUSTRIES BHD: Results - 30/9/98
-----------------------------------------------
Pan Malaysian Industries Bhd (listed on the KLSE) reported
a post-tax loss of RM128.021mil for the 6months ended
30/9/98, compared to a post-tax loss of RM13.398mil
previously. Loss per share rose 759.4% from 3.2sen
previously to 27.5sen during the current period.


PERUSAHAAN SADUR TIMAH: Unable to make payments
-----------------------------------------------
Business Times reports Perusahaan Sadur Timah Malaysia Bhd
(Perstima) has informed the Kuala Lumpur Stock Exchange
that its cashflow position has not improved and it is
unable to provide any funds to repay its loans at the
moment. The group's creditors are Sabah Development Bank
Bhd and Perwira Affin Bank Bhd. The facilities provided by
Perwira Affin are two term loans totalling RM90 million,
while it has a total outstanding debt of RM87.64 million
from Sabah Bank.

It said the company is unable to make any repayments due to
its limited cash flow funds, which have been prioritised
for use in maintaining and operating its tin plate
manufacturing core business.

In May last year, Perstima entered into an agreement with
Penang Shipbuilding & Construction Sdn Bhd and PSC
Industries Bhd to sell 66.7 per cent of its equity interest
in Perstima Industries Sdn Bhd. The cash realised from this
disposal would have effectively discharged the company from
its loan obligations with Perwira Affin Bank. However, the
agreement lapsed and fresh negotiations on a new share sale
and purchase agreement have been ongoing with the same
party since March 1998.

In August 1998, Perwira Affin Bank decided to recall the
facilities. Perstima said it is unable to continue the
repayments as all its available funds have been committed
to maintain the operation of its sole core business in the
manufacture of tinplate.

On September 21, it executed a new share sale and purchase
agreement with Penang Shipbuilding & Construction Sdn Bhd
and PSC Industries Bhd to supercede the May 1997 agreement.
In the agreement, the purchaser had undertaken to make the
necessary arrangements with the bank to service the monthly
instalments and interest for the term loans. Perstima added
that it is still negotiating with the bank to discuss the
various available options for settlement and that the bank
has stayed the exercise of legal procedures as various
settlement proposals are still being studied.


RASHID HUSSAIN: May place out some of its RHB Capital stake
-----------------------------------------------------------
Singapore Business Times says Malaysia's financial services
group Rashid Hussain Bhd (RHB) said yesterday that the
company was considering placing out some of its 60.6 per
cent stake in RHB Capital in a move to reduce its debts.  
The company said in a reply to a Kuala Lumpur Stock
Exchange query that it told fund managers recently that it
would be reviewing all the options available to reduce its
gearing. It said the options could include RHB placing out
some of its equity interest in RHB Capital.

"We, however, stressed that this is only one of the options
available and should it be pursued, an announcement will be
made at the appropriate time," it said. "We also stressed
(to the fund managers) that it is RHB's intention that RHB
Capital should remain as a subsidiary of RHB."

RHB said it was also considering selling part or all of its
property project now under development in Kuala Lumpur. The
project, called Vision City, is being developed by RHB's 80
per cent owned property unit RHB-Daewoo Sdn Bhd.


REDIFFUSION BHD: Results - 30/9/98
----------------------------------
Rediffusion Bhd (listed on the KLSE) reported a post-tax
loss of RM0.23mil for the 6months ended 30/9/98, compared
to a post-tax loss of RM1.408mil previously. Loss per share
reduced to 1.7sen, from a loss of 5.4sen previously.


RENONG BHD: Analysts say government will back bailout plan
----------------------------------------------------------
Singapore Business Times says the government, which has yet
to decide on Renong Bhd's proposed bailout, will eventually
back the scheme, though some changes may be made to the
plans announced in October, analysts said.

They said a key reason for the delay is the proposal to
issue 10.5 billion Malaysian ringgit (S$4.6 billion) in
government guaranteed bonds, which could be seen as the use
of taxpayers' money to ensure or guarantee the survival of
Renong.

Analysts said however that whatever shape is finally
decided for the massive restructuring proposal, it is
unlikely to improve Renong's cashflow, but will rather only
serve to reduce or defer debt payments. Some analysts said
that Renong, also reportedly under pressure from
bondholders, should consider seeking court protection from
its creditors under section 176 of the Companies Act, to
give it time to restructure.

In October, just after announcing its restructuring plan,
Renong disclosed that the group had been unable to meet
interest and guarantee fee obligations totalling some RM12
million as at Oct 15. The obligations fell due under
various loan facilities from banks, with total principal
outstanding of RM421.4 million and US$147 million (S$244
million). The default also constituted an event of cross
default totaling RN1.87 billion under Renong's other loan
facilities and contingent liability.

One analyst with a foreign brokerage said the government
has very little choice on the matter and "would somehow
have to consent to the restructuring as it is the best
solution at this point of time".

He said the sale of assets or a possible rights issue would
not be wise given current market conditions. "If the
restructuring proposal does not go through, it is difficult
to see the company survive this recession," he said.

The analyst said the government would not want to see
Renong fail as its collapse would affect the banking sector
and result in massive job losses. "It is just a matter of
time before approval is given or slight adjustments made
(to the proposal)."

Referring to reports that some bondholders have served
notice for recovery of debt issued by Renong, the analyst
said it would be "unrealistic to expect Renong to pay back
all their borrowings".

"It wouldn't benefit all these borrowers (if credit lines
were withdrawn). I think the best solution is to still try
and work out a payment schedule," he said. He said forcing
Renong to sell assets would be counterproductive. "There is
no point pushing Renong too hard. Its assets in Gelang
Patah (near the second link with Singapore) have a market
value of RM2 billion, but given current property prices, it
would fetch far less," he said.

By one reckoning, Renong has about RM850 million of
preference shares in toll road operator Projek Lebuhraya
Utara-Selatan (Plus), a unit of United Engineers (M) Bhd.
The company has other assets in the form of equity stakes
in listed concerns, whose share prices are already
depressed.


VITCO TRADING (PENANG) SDN BHD: Winding-up petition
---------------------------------------------------
E-Rete (M) Sdn Bhd on 8/7/98 petitioned for the winding-up
of Vitco Trading (Penang) Sdn Bhd. The petition is directed
to be heard on 12/2/99.


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

AMEROP PHILIPPINES: Sugar firm may sue Gokongwei-owned mill
-----------------------------------------------------------
BusinessWorld reports sugar trading firm Amerop
Philippines, Inc. (Amerop) is planning to sue Gokongwei-
owned sugar mill Southern Negros Development Corp.
(Sonedco) for losses amounting to 100 million Philippine
pesos (PhP) brought about by the mill's delayed release of
sugar stocks after an attempted withdrawal last September.

In an interview with BusinessWorld yesterday, Amerop
president Rodolfo delos Reyes said the company bought
80,000 50-kilogram bags of raw sugar from Sonedco earlier  
this year but were not able to withdraw their stocks last
September when they presented their quedans to the mill, in
effect making them "sugarless quedans."

Sonedco president John Robert Gokongwei, however, denied
Amerop's claim, saying the latter's stocks were available
but were inadvertently transferred to another mill together
with Sonedco's stocks. Quedans are documents which serve as
proof of ownership of sugar stocks in warehouses. Quedans
are presented to mills to make a withdrawal of sugar
stocks.

Mr. delos Reyes said they plan to pursue a case against
Sonedco even if they are now about to receive all their
stocks from the mill as they would like to recover losses
caused by the drop in sugar prices for the September-
November period.


PHILIPPINE AIRLINES: PAL calls for US$150m in new capital
---------------------------------------------------------
According to the South China Morning Post, PAL yesterday
unveiled a rehabilitation plan involving a shareholder
equity injection of US$150 million and a massive
rescheduling of debt. It called for injection of $90
million as soon as the plan is approved and $60 million
within 180 days. The plan, which was submitted to the
Securities and Exchange Commission, also said "securing a
strategic partner, most likely in the form of a foreign
airline continues to be a priority for PAL" but did not say
whether the rescue hinged on acquiring such a partner.

PAL officials had earlier said they would submit a "stand-
alone" plan that would allow for the rehabilitation of the
airline without any new strategic partners.

The rehabilitation plan said PAL had already made progress
in making up for losses and forecast that cash-flow would
improve to $215 million this year.

Under the plan, existing common shares of PAL will fall
from five pesos per share to one centave per share with the
new equity making up 90 per cent of the airline's
ownership, and the ownership share of PAL employees will be
brought to 5 per cent. Creditors will be asked to
reschedule claims according to the type of their debt. They
will also be asked to forgive all default interest.

PAL also said it would continue negotiations with lessors
of aircraft on settling their claims.

It said it would focus on profitable routes, improve fleet
efficiency and revenue and dispose of non-core activities.

Philippine president Joseph Estrada will this week meet
representatives of PAL and Cathay Pacific Airways in a
last-ditch attempt to save a possible deal. Singapore
Airlines (SIA) has denied it was interested in purchasing a
stake in PAL.

The Hong Kong Standard reported briefly in the plan for
shareholder injection of capital, the forthcoming meeting
of Mr Estrada with PAL and Cathay, and the denial by SIA of
its interest in PAL.


PHILIPPINE LONG DISTANCE: First Pacific to double equity
--------------------------------------------------------
Singapore Business Times reports Hongkong's First Pacific
Co Ltd said yesterday it expects to double its equity in
Philippine Long Distance Telephone Co. (PLDT) to more than
30 per cent from its recently acquired 17.2 per cent. The
company, which bought into PLDT in a celebrated deal last
month worth US$750 million (S$1.2 billion), said it would
make further acquisitions through its local units Metro
Pacific Assets Holdings Inc and Larouge BV.

First Pacific told the Securities and Exchange Commission
here that it "has not yet made a determination as to the
specific level of beneficial ownership (it) will seek to
obtain but expects eventually to have beneficial ownership
of more than 30 per cent of the outstanding common shares".

The company currently holds 17.2 per cent in PLDT, which
represents a 27.4 per cent voting stake in the Philippine
blue chip.

Analysts have said the First Pacific-PLDT alliance would
bolster PLDT's lead in the market, but critics fear it
would lead to a return of a monopoly.


PHILREALTY: Explains it has no debts with DMCI, Universal
---------------------------------------------------------
BusinessWorld reports property firm Philippine Realty and
Holdings Corp. (PRHC) said it is not indebted to DMCI
Project Developers, Inc. (DMCI) and Universal Rightfield  
Property Holdings, Inc. since the 42-million Philippine
peso (PhP) credit the two companies transferred to their
common subsidiary, Universal Leisure Corp. (ULC) was not  
assignable. The company added that ULC should pay the
balance of the purchase price for the condominium units
bought from PRHC since there was no "assignable credit."

The balance of the ULC's purchase price now amounts to
PhP65 million, including interests.

PRHC recently filed a civil case before the Regional Trial
Court against the three property companies. It alleged that
the assignment of DMCI and URPHI to ULC of their rights
under the memorandum of agreement signed last year is  
"void."


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

FRASER & NEAVE: Could be hit by provisions from property
--------------------------------------------------------
Singapore Business Times reports earnings of diversified
soft drinks group Fraser & Neave Ltd (F&N) could be hit by
large provisions from its property arm, analysts said
yesterday. F&N, the bottler for Coca-Cola in Singapore,
Malaysia and some other markets in the region, is expected
to announce its full-year results on Friday.

The group reported a 69 per cent fall in half-time profit
to $26.2 million, and in August warned that the second half
would be worse than the first. Analysts said 1998 has been
a difficult year for F&N, with its soft drinks revenue
badly hit by weak sales as a result of the Asian economic
crisis. But whether the group slips into the red would
depend on how much provision its listed property arm,
Centrepoint Properties Ltd, takes.

Cheong Kok Wing, an analyst at Merrill Lynch, said
Centrepoint could make a maximum provision of up to $150
million for its development properties. Mr Cheong, who has
forecast a net profit of $34 million for 1998, said the
final number would depend on the size of the provisions.


SHOWPLA ASIA: Receiver for Showpla Asia unit named
--------------------------------------------------
Singapore Business Times says Showpla Asia yesterday said
RHB Bank Bhd has appointed Tee Siew Kai of S K Tee & Co as
receiver of its Malaysian subsidiary Showplatronics Sdn Bhd
(SPT). SPT is a fully-owned unit of Showpla Sdn Bhd, which
is also under receivership and is 60 per cent owned by
Showpla Asia.


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

SEMICONDUCTOR VENTURES: Presents rehabilitation plan
----------------------------------------------------
Semiconductor Ventures International PLC made presentation
on its Rehabilitation Plan to securities with its financial
advisor, Nava Vickers Ballas Securities Co., Ltd. (NVS) on
December 2, 1998 at Grand Hall, The Bangkok Club, Sathorn
City Tower.

In 1996, the Company has faced the possibility of delisting
from the SET due to the tremendous amount of retained
losses caused the suspicion of SVI's inability to continue
its operation on going concern basis. The continuing of
operating losses caused  SVI's a negative networth in 1997.

After the acquisition by Hambrecht & Quist (H&Q) Group at
the end of 1997, SVI's status has been improved. SVI and
H&Q Group had successfully conducted debt restructuring
with its trade creditor and lenders. In April 1998, H&Q
Group has completely controlled the Company. By the middle
of 1998, SVI established 2 international purchasing offices
and appointed several sales representatives covering both
European and US markets.

The complete takeover of SVI by H&Q Group since April 9,
1998 has improved the company's image. In addition, the new
major shareholder is able to support SVI's business   
operation and provide decent business direction.

By the end of December 1998, SVI plans to raise paid-up
capital to Baht 792.8 million through rights offering at
the ratio of 1 existing share to 4 new shares at the price
of 3.1 baht per share. The proceed from capital increase is
approximately Baht 200 million.


SIAM CEMENT: No need for new foreign tie-ups
--------------------------------------------
The Bangkok Post reports the head of Siam Cement Plc's
petrochemical group said he did not find it necessary to
seek additional foreign alliances. Under the business
restructuring plan announced recently, SCC will emphasise
one of its three business lines, the petrochemical group.
Cement along with paper and pulp are the other two lines in
focus.

"We [the petrochemical group] do not need to bring in new
partners. With our existing operations, we are able to
generate enough cash to pay back loans," Apiporn Pasawat,
head of SCC's petrochemical group, said.

The group expects to generate US$800 million in revenues
this year, of which 40 per cent will be contributed by
exports. Sales are expected to jump to $1.4 billion owing
to the four new upstream and intermediate plants which have
a combined investment value worth more than $1.2 billion.
The company's total debts amount to $1 billion.

Petrochemical business is one of SCC's three core
businesses after the country's giant industrial
conglomerate announced its business restructuring on Nov
25. The others comprise cement as well as pulp and paper.
These main businesses account for approximately 60 per cent
of SCC.


TISCO FINANCE: Deutsche Bank takeover clouds Tisco
--------------------------------------------------
The Bangkok Post reports Tisco Finance Plc's uncertain
future has caused investors to panic and dump their shares
after Deutsche Bank AG confirmed the takeover of Bankers
Trust, a major shareholder in the Thai finance company.
Deutsche Bank said it plans to pay US$10.1 billion to
acquire Bankers Trust, the eighth largest bank in the
United States. The acquisition will affect the future of
Tisco because Bankers Trust has a 50 per cent stake in the
Thai finance company.

Analysts say it is still too early to tell whether Deutsche
Bank will want to merge Tisco in its empire or not.

Tisco and subsidiaries showed a Bt297.48 million net loss
in the third quarter this year, against a Bt28.5 million
net profit in the same period last year. In its nine month
financial statement, the company posted a Bt2.08 billion
net loss, compared with a Bt352.62 million net profit last
year.


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,
DC USA.  Debra Brennan and Lexy Mueller, Editors.

Copyright 1998.  All rights reserved.  ISSN: 1520-9482.  

This material is copyrighted and any commercial use,
resale or publication in any form (including e-mail
forwarding, electronic re-mailing and photocopying) is
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term of the initial subscription or balance thereof are
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