TCRAP_Public/981210.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 10, 1998, Vol. 1, No. 204

                    Headlines


* C H I N A   &   H O N G   K O N G *

CULTURECOM HOLDINGS: ViaGold has stake transfer right
GUANGDONG INTERNATIONAL: Bankers to meet officials on debt


* I N D O N E S I A *

BANK DAGANG: Defunct banks' cars up for auction
BANK HOKINDO: Defunct banks' cars up for auction
BANK MODERN: Defunct banks' cars up for auction
BANK SUYYA: Defunct banks' cars up for auction
BANK UMUM: Defunct banks' cars up for auction

CENTRIS INTERNATIONAL: Defunct banks' cars up for auction
LIPPO BANK: Announces plans for rights issue
PT MODERNLAND REALITY: Court says ruling incorrect


* J A P A N *

AOBA LIFE: Buyer to be chosen in January
MITSUI LIFE: Announces plans to become listed company
NISSAN MOTOR: To restructure US operations
OKI ELECTRIC: Moody's downgrades Oki Electric's ratings


* K O R E A *

DAEWOO: Cleaning up could swell debt-to-equity
DAEWOO: To exit electronics and telecommunications
HYUNDAI: Cleaning up could swell debt-to-equity
HYUNDAI E&C: Plans another capital increase
LG: Cleaning up could swell debt-to-equity

POHANG IRON: POSCO shares sold overseas
SAMSUNG: Cleaning up could swell debt-to-equity
SK: Cleaning up could swell debt-to-equity
TONG IL GROUP: Asian crisis eclipses Moon empire


* M A L A Y S I A *

ANGSARA CLASSIC PLASTER SDN BHD: Winding-up petition
C&P RENT-A-CAR (M) SDN BHD: Voluntary winding-up
EDARAN OTOMOBIL: To see first loss
KUAN AH SIEW & SONS REALTY: Voluntary winding-up
MCSB SYSTEM (M) BHD: Results - 30/9/98

MNI HOLDINGS BHD: Results - 30/9/98
REKAPACIFIC BHD: May lose control of Promet and Kelanamas
SERBA PERSPEKTIF SDN BHD: Winding-up petition
TASK CIRCLE (M) SDN BHD: Winding-up petition
TENAGA NASIONAL: Currency swap forces loan cuts

TRADELAND ENTERPRISE SDN BHD: Voluntary winding-up


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

PHILIPPINE AIRLINES: Creditors get 15 days to comment
PHILIPPINE AIRLINES: Estrada maintains hopes in Cathay
PHILIPPINE LONG DISTANCE: First Pacific denies Marcos claim


* S I N G A P O R E *

PACIFIC ANDES: Results announcement


* T H A I L A N D *

ALPHATEC: Creditors have problem with restructuring
MALEE SAMPRAN: Aims to pay down debt
PTT EXPLORATION: Agency downgrades PTTEP to 'performer'
SRITHAI SUPERWARE: Debt deal nears completion
THAI PETROCHEMICAL: Progress affects loans to others


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

CULTURECOM HOLDINGS: ViaGold has stake transfer right
-----------------------------------------------------
According to the Hong Kong Standard, Culturecom Holdings
yesterday confirmed ViaGold Capital has the right to
transfer the stake to its own controlling shareholder
Harvest Smart Overseas within three months of the
completion of the purchase. Culturecom also said ViaGold's
recent announcement to the Australian Stock Exchange
contained incorrect and inappropriate information. It said
ViaGold intends to keep its investment in Culturecom as a
long-term investment.


GUANGDONG INTERNATIONAL: Bankers to meet officials on debt
----------------------------------------------------------
According to the Hong Kong Standard, the Hong Kong
Association of Banks will meet with mainland authorities
early next year to further discuss problems faced by banks
in handling debt matters from the closure of Gitic.
Chairman of the association, Mr Mervyn Davies, who is also
Standard Chartered Group executive director said the
association had compiled a list of questions on the issue
and is still looking at questions posed by banks concerning
problems arising from handling debt matters.

He said in getting the questions to the State
Administration of Foreign Exchange, the association would
be working with the monetary authority, which in the next
few weeks will be reviewing the issue of giving guidelines
to banks on making provisions.


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

BANK DAGANG: Defunct banks' cars up for auction
-----------------------------------------------
According to the South China Morning Post, official
auctioning of vehicles owned by banks frozen by the
Indonesian Bank Restructuring Agency (IBRA) began
yesterday. Ten auctions of more than 1,000 vehicles owned
by troubled banks are expected. In the coming two-day sale,
about 83 cars and 44 motorcycles were due to be auctioned.
The central bank will receive 87.3 per cent of the proceeds
and the remaining money will go to the auctioneer and the
government's auction office.

IBRA's head of asset management Mr Budianto said there will
be auctions for office appliances including computers and
buildings of the troubled banks.


BANK HOKINDO: Defunct banks' cars up for auction
------------------------------------------------
According to the South China Morning Post, official
auctioning of vehicles owned by banks frozen by the
Indonesian Bank Restructuring Agency (IBRA) began
yesterday. Ten auctions of more than 1,000 vehicles owned
by troubled banks are expected. In the coming two-day sale,
about 83 cars and 44 motorcycles were due to be auctioned.
The central bank will receive 87.3 per cent of the proceeds
and the remaining money will go to the auctioneer and the
government's auction office.

IBRA's head of asset management Mr Budianto said there will
be auctions for office appliances including computers and
buildings of the troubled banks.


BANK MODERN: Defunct banks' cars up for auction
-----------------------------------------------
According to the South China Morning Post, official
auctioning of vehicles owned by banks frozen by the
Indonesian Bank Restructuring Agency (IBRA) began
yesterday. Ten auctions of more than 1,000 vehicles owned
by troubled banks are expected. In the coming two-day sale,
about 83 cars and 44 motorcycles were due to be auctioned.
The central bank will receive 87.3 per cent of the proceeds
and the remaining money will go to the auctioneer and the
government's auction office.

IBRA's head of asset management Mr Budianto said there will
be auctions for office appliances including computers and
buildings of the troubled banks.


BANK SUYYA: Defunct banks' cars up for auction
----------------------------------------------
According to the South China Morning Post, official
auctioning of vehicles owned by banks frozen by the
Indonesian Bank Restructuring Agency (IBRA) began
yesterday. Ten auctions of more than 1,000 vehicles owned
by troubled banks are expected. In the coming two-day sale,
about 83 cars and 44 motorcycles were due to be auctioned.
The central bank will receive 87.3 per cent of the proceeds
and the remaining money will go to the auctioneer and the
government's auction office.

IBRA's head of asset management Mr Budianto said there will
be auctions for office appliances including computers and
buildings of the troubled banks.


BANK UMUM: Defunct banks' cars up for auction
---------------------------------------------
According to the South China Morning Post, official
auctioning of vehicles owned by banks frozen by the
Indonesian Bank Restructuring Agency (IBRA) began
yesterday. Ten auctions of more than 1,000 vehicles owned
by troubled banks are expected. In the coming two-day sale,
about 83 cars and 44 motorcycles were due to be auctioned.
The central bank will receive 87.3 per cent of the proceeds
and the remaining money will go to the auctioneer and the
government's auction office.

IBRA's head of asset management Mr Budianto said there will
be auctions for office appliances including computers and
buildings of the troubled banks.


CENTRIS INTERNATIONAL: Defunct banks' cars up for auction
---------------------------------------------------------
According to the South China Morning Post, official
auctioning of vehicles owned by banks frozen by the
Indonesian Bank Restructuring Agency (IBRA) began
yesterday. Ten auctions of more than 1,000 vehicles owned
by troubled banks are expected. In the coming two-day sale,
about 83 cars and 44 motorcycles were due to be auctioned.
The central bank will receive 87.3 per cent of the proceeds
and the remaining money will go to the auctioneer and the
government's auction office.

IBRA's head of asset management Mr Budianto said there will
be auctions for office appliances including computers and
buildings of the troubled banks.


LIPPO BANK: Announces plans for rights issue
--------------------------------------------
The Financial Times reports Lippo Bank, thought to be one
of Indonesia's stronger banks, yesterday saw it's shares
drop nearly 8 percent after it announced plans for a rights
issue to raise $530-662 million and revealed heavy losses.

Lippo's decision to take the charge against its 1998
results to clean the balance sheet is in contrast to most
Indonesian banks, which have recognised only a fraction of
their bad-loan portfolio.


PT MODERNLAND REALITY: Court says ruling incorrect
--------------------------------------------------
The Asian Wall Street Journal reports that the Indonesian
Supreme Court has overturned a ruling by the Jakarta
commercial court that PT Modernland was bankrupt. This
appeal stems from Modernland's inablity to return 93
million rupiah, a downpayment to customers for an apartment
in Jakarta. The commercial court originally ruled that
failure to repay this debt constituted bankruptcy.  

However, the Supreme Court said its verdict in this case
was based on not a legal debt obligation, but rather a
buying and selling arrangement. The commercial court has no
authority to settle problems or to declare bankruptcy in
this case as the company wasn't dealing with a debt
obligation.  

According to the new 1998 bankruptcy law in Indonesia, the
authority of the commercial court is limited to the
examination of bankruptcy petitions and requests for the
rescheduling of debt payments.


=========
J A P A N  
=========

AOBA LIFE: Buyer to be chosen in January
----------------------------------------
Nikkei reports the determination of a winner in the auction
of Aoba Life Insurance Co. is likely to be put off until
January, sources familiar with the matter say. The Life
Insurance Association of Japan held a late-November auction
to sell off the insurer. Aoba Life, owned by the industry
group, was created to take over the insurance contracts of
failed Nissan Mutual Life Insurance Co.

The association had been aiming to announce a winning bid
this month, but the review of bids is taking longer than
expected. The trade group is weighing not only price but
also various conditions that bidders have attached to a
purchase of Aoba Life. One principal problem raised by
potential buyers is that of where responsibility will lie
if conditions at Aoba deteriorate after its sale, sources
say.

Some three to four foreign firms were among the group of
companies submitting bids to purchase Aoba Life. But
American International Group Inc. (AIG), which first
approached the industry group in April about a sale of Aoba
Life, has taken itself out of the running.


MITSUI LIFE: Announces plans to become listed company
-----------------------------------------------------
The Financial Times reports Mitsui Life yesterday became
the first Japanese mutual life insurer to announce plans to
become a listed company, in the latest response to the
falling revenues, large debts and low solvency ratios in
the country's life-insurance sector. The move, which could
enable Mitsui to boost its financial strength and enter new
alliances, marks a break with corporate tradition in Japan.
At present almost all of Japan's largest life assurers are
mutuals.

Mitsui Life, which is rated near "junk bond" status by
Standard & Poor's yesterday said the move would allow it to
increase its capital and establish holding companies.
Mitsui Life yesterday said it had signed contracts with
Goldman Sachs and Nomura Securities for advice on the
transition.


NISSAN MOTOR: To restructure US operations
------------------------------------------
Nikkei reports Nissan Motor Co. will comprehensively
restructure its North American operations from Jan. 1,
company sources said Tuesday. The automaker plans to merge
California subsidiaries Nissan North America Inc. (NNA) and
Nissan Motor Corp. in U.S.A. (NMC), and reduce its overall
U.S. payroll by some 500 jobs by 2000.

Nissan saw a consolidated net loss of 80 billion yen on
North American operations in fiscal 1997, and will likely
suffer a multi-billion yen loss for the current year. The
company hopes streamlining and reinforced sales promotion
will return business there to the black in fiscal 1999.

The automaker has integrated computer divisions at NNA, NMC
and Nissan Motor Acceptance Corp. (NMAC) to cut personnel
costs and maintenance expenses, and will transfer NMC's
used car division to NMAC.

Nissan targets a return to profitability at a sales volume
of some 650,000 vehicles, the level it posted in fiscal
1997.


OKI ELECTRIC: Moody's downgrades Oki Electric's ratings
-------------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Service Inc. has downgraded the long-term debt
rating of Oki Electric Industry Company from Baa3 to Ba2,
and its domestic shelf registration from (P) Baa3 to (P)
Ba2.  This downgrade affects about 170 billion yen in long-
term debt and about 120 billion yen in shelf registration.  

Oki Electric Industry Co. is Japan's first
telecommunications manufacturer, founded in 1881 by
Kibataro Oki to manufacture and install telephone and
telegraph equipment. The report stated that the company is
facing a difficult operational environment in its core
businesses of electronic devices, telecommunications
systems, and information systems.

The company also reported large losses in its semiconductor
operation.  


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

DAEWOO: Cleaning up could swell debt-to-equity
----------------------------------------------
The Korea Herald reports the government's efforts to
eliminate "circular investments" among the subsidiaries of
Korea's five largest family owned conglomerates (or
chaebols) could result in an increase in these groups debt-
to-equity ratios. As direct cross equity investments among
chaebol subsidiaries are banned, the groups have employed
circular investment practices to increase unit equity.

The article points out that if such investments are
prohibited, then the debt-to-equity ratios of these
chaebols would have to increase. The top five chaebols have
equity investments totaling 14.417 trillion won. This
amount represents an increase of 30 percent since this past
February when government restrictions on equity investments
per chaebol company were lifted.


DAEWOO: To exit electronics and telecommunications
--------------------------------------------------
Singapore Business Times reports Daewoo Group, South
Korea's third largest conglomerate, said it will eliminate
31 of its 41 companies through mergers, sales and
liquidations, bowing to government pressure to downsize to
reduce its debt. The group, which now makes everything from
ships to light bulbs and sells securities, said it will try
to focus on four areas -- automobiles, heavy industry,
trade and construction and financial services.

Daewoo is the first of five big groups to present a
detailed downsizing plan following government threats to
cut off their credit.

The group said it will retain its flagship Daewoo Motor,
Korea's second largest automaker, Daewoo Corp, Daewoo Heavy
Industries, Daewoo Securities, Daewoo Financial Service,
Keangnam Enterprise, Daewoo Development, Daewoo Precision
Industries, Orion Electric and Daewoo Motor Sales. The
downsizing will remove Daewoo entirely from
telecommunications and electronics and reduce its revenues
by about 10 per cent to 62 trillion won (S$84.3 billion)
next year, said Kim Tae Gou, president of Daewoo Motor.

Mr Kim said Daewoo reduced the amount it hopes to make from
foreign investment in its companies to US$4.9 billion
(S$8.1 billion) from US$7 billion because of problems in
talks with General Motors Corp. The two, which had a joint
venture together until 1992, have discussed the possibility
of GM taking a stake of less than 50 per cent in Daewoo
Motor.

Together with stock and debt sales, Daewoo expects to raise
US$2.7 billion to pay down debt this year and US$4.9
billion in 1999.

According to the plan, Daewoo Electronics, Daewoo
Electronic Components and Daewoo Electronic Motor
Industries will be merged into one before being swapped for
Samsung Motors and other auto related businesses. Eight
companies will be merged into some of the 10 to be
retained; seven will be sold to Daewoo management; three,
including Daewoo Telecom, will be sold to foreign
investors; and eight will be sold to employees or domestic
investors. Keangnam Seniors Town Ltd and Ilsan Station
Development are slated for liquidation.

The Wall Street Journal says subsidiary Orion Electric will
be required to submit a rehabilitation program to its
creditors, making its future uncertain.

The Journal article says analysts argue that Daewoo's
moves, though positive, failed to address Daewoo's central
problems. "They're still in businesses without any
comparative advantages," said Richard Samuelson, research
director at Warburg Dillon Read in Seoul. "It's pruning,
not cutting."


HYUNDAI: Cleaning up could swell debt-to-equity
-----------------------------------------------
The Korea Herald reports the government's efforts to
eliminate "circular investments" among the subsidiaries of
Korea's five largest family owned conglomerates (or
chaebols) could result in an increase in these groups debt-
to-equity ratios. As direct cross equity investments among
chaebol subsidiaries are banned, the groups have employed
circular investment practices to increase unit equity.

The article points out that if such investments are
prohibited, then the debt-to-equity ratios of these
chaebols would have to increase. The top five chaebols have
equity investments totaling 14.417 trillion won. This
amount represents an increase of 30 percent since this past
February when government restrictions on equity investments
per chaebol company were lifted.


HYUNDAI E&C: Plans another capital increase
-------------------------------------------
The Digital ChosunIlbo reports Hyundai Engineering and
Construction Corp. (HE&C) announced Wednesday that it plans
to increase its capital by W450 billion by January next
year. The flagship subsidiary of the nation's top
conglomerate, Hyundai Business Group, HE&C has already seen
a W230 billion capital increase this year, with a W80-
billion increase this past February and more recently, a
W150-billion increase in November. HE&C's paid-in capital
currently stands at W529 billion.


LG: Cleaning up could swell debt-to-equity
------------------------------------------
The Korea Herald reports the government's efforts to
eliminate "circular investments" among the subsidiaries of
Korea's five largest family owned conglomerates (or
chaebols) could result in an increase in these groups debt-
to-equity ratios. As direct cross equity investments among
chaebol subsidiaries are banned, the groups have employed
circular investment practices to increase unit equity.

The article points out that if such investments are
prohibited, then the debt-to-equity ratios of these
chaebols would have to increase. The top five chaebols have
equity investments totaling 14.417 trillion won. This
amount represents an increase of 30 percent since this past
February when government restrictions on equity investments
per chaebol company were lifted.


POHANG IRON: POSCO shares sold overseas
---------------------------------------
The Digital ChosunIlbo reports the government and the Korea
Development Bank (KDB) issued deposit receipts (DR) in a
US$300 million sell-off of their shares in Pohang Iron and
Steel Corp. (POSCO) on international financial markets. The
amount is the largest instance of this type of foreign
capital inducement ever, a government source said
Wednesday.

The source said one DR was sold at US$15.25 at four DRs to
one share, equivalent to a 25.6% premium over domestic
prices. The DRs were sold at a road show and decision on
the unit price and contract signing which occurred from
Nov.30 to Dec. 9. With the sale, the government's share in
POSCO has been sold off in total and the KDB is left with
only a 21.6% share of the steel giant.


SAMSUNG: Cleaning up could swell debt-to-equity
-----------------------------------------------
The Korea Herald reports the government's efforts to
eliminate "circular investments" among the subsidiaries of
Korea's five largest family owned conglomerates (or
chaebols) could result in an increase in these groups debt-
to-equity ratios. As direct cross equity investments among
chaebol subsidiaries are banned, the groups have employed
circular investment practices to increase unit equity.

The article points out that if such investments are
prohibited, then the debt-to-equity ratios of these
chaebols would have to increase. The top five chaebols have
equity investments totaling 14.417 trillion won. This
amount represents an increase of 30 percent since this past
February when government restrictions on equity investments
per chaebol company were lifted.


SK: Cleaning up could swell debt-to-equity
------------------------------------------
The Korea Herald reports the government's efforts to
eliminate "circular investments" among the subsidiaries of
Korea's five largest family owned conglomerates (or
chaebols) could result in an increase in these groups debt-
to-equity ratios. As direct cross equity investments among
chaebol subsidiaries are banned, the groups have employed
circular investment practices to increase unit equity.

The article points out that if such investments are
prohibited, then the debt-to-equity ratios of these
chaebols would have to increase. The top five chaebols have
equity investments totaling 14.417 trillion won. This
amount represents an increase of 30 percent since this past
February when government restrictions on equity investments
per chaebol company were lifted.


TONG IL GROUP: Asian crisis eclipses Moon empire
------------------------------------------------
According to the South China Morning Post, four companies
in Reverend Sun Myung Moon's Tong Il Group - Tong Il Heavy
Industries, Hankook Titanium, IL Sung Construction and Il
Shin Stone - filed for court protection last week after
failing to keep up bank loan repayments.

Analysts said this would lead to the breakup of the group.
The collapse was sparked by the failure of Tong Il Heavy
Industries to make payments on a loan but trouble has been
brewing for some time. Like many other Korean businesses,
Tong Il has been hammered by a combination of slumping
revenues and enormous debt burdens. At the end of last year
the group's 17 companies had a combined debt of $1.2
billion, 19 times their equity value.

In 1990 the Unification Church headed by Mr Moon was said
to have land holdings worth more than $1 billion as well as
factories and a chain of stores. Its overseas assets
include shares in the influential United States newspaper
the Washington Times and car plants in the mainland and
Vietnam. Behind its success was a vast pool of cheap labor
working long hours at low wages.

The difficulties facing the Tong Il Group have grown
increasingly apparent since May, when member firm Il Hwa, a
soft-drinks maker, went out of business, followed by an
embarrassing failure to win the right to develop a tourist
resort in North Korea.


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

ANGSARA CLASSIC PLASTER SDN BHD: Winding-up petition
----------------------------------------------------
Elite Metal Industries Sdn Bhd on 3/11/98 petitioned for
the winding-up of Angsara Classic Plaster Sdn Bhd. The
petition is directed to be heard on 14/4/99.


C&P RENT-A-CAR (M) SDN BHD: Voluntary winding-up
------------------------------------------------
The members of C&P Rent-A-Car (M) Sdn Bhd on 30/11/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 9/1/99.


EDARAN OTOMOBIL: To see first loss
----------------------------------
Singapore Business Times reports Edaran Otomobil Nasional
Bhd, the distributor of Malaysia's best-selling car Proton,
will likely swing this year to its first loss since going
public in 1990, analysts said. The company, better known as
EON, is expected to lose 38.3 million Malaysian ringgit
(S$16.7 million), or 16.9 sen a share, this year, estimates
Alan Inn, an analyst with Kleinwort Benson Research (M)
Sdn. In the year-earlier period, EON had a profit of
RM429.2 million or RM1.81 ringgit a share. Mr Inn has a
"sell" rating on the stock.

EON is looking to slash costs to offset falling car sales
in the recession-torn country, but is likely to be
constrained by its inability to fire its staff, analysts
said.

While rivals like Tan Chong Motor Holdings Bhd, which sells
Nissan cars, fired 40 per cent of its 900 assembly-line
workers early this year, EON, being part of the country's
national car project, is keeping its 2,700 employees, a
company official said. The cost cuts are focused on
""cutting of operational costs such as water and
electricity'', said EON official Fauziah Abdul Aziz,
adding: ""There (is) no retrenchment.''

EON has a net cash position, with its cash exceeding its
total borrowings. It also has a 59 per cent stake in EON
Bank Bhd that it can sell to raise funds.


KUAN AH SIEW & SONS REALTY: Voluntary winding-up
------------------------------------------------
The members of Kuan Ah Siew & Sons Realty (M) Sdn BHd on
8/12/98 resolved to wind-up the company voluntarily.
Creditors are requested to submit their claims before
23/12/98.


MCSB SYSTEM (M) BHD: Results - 30/9/98
--------------------------------------
MCSB System Bhd (an IT company listed on the KLSE) reported
a operating loss of RM2.3mil for the 6months ended 30/9/98,
compared to a loss of RM5.8mil previously. A group
restructuring exercise has been undertaken and cost-control
measures have been implemented to improve performance.


MNI HOLDINGS BHD: Results - 30/9/98
-----------------------------------
MNI Holdings Bhd (insurance company listed on the KLSE)
reported a pre-tax loss of RM73.532mil for the 6months
ended 30/9/98, compared to a pre-tax loss of RM59.193mil
previously.

The group's bottom line was adversely affected by the drop
in KLSE.

The group's insurance business recorded an increase in
premiums for the period.


REKAPACIFIC BHD: May lose control of Promet and Kelanamas
---------------------------------------------------------
Singapore Business Times reports Rekapacific Bhd -- the
listed vehicle of Ling Hee Leong, who is the eldest son of
Malaysian Transport Minister Ling Liong Sik -- might lose
control of Promet Bhd and Kelanamas Industries Bhd. Promet
and Kelanamas chief executive officer Soh Chee Wen said the
two money-losing companies are expected to have new core
businesses and may see the emergence of new major
shareholders.

He said Promet, which obtained a six-month court
restraining order in July, may change its core business to
property development from  its old focus on marine
engineering.

Timing of its potential foray into the Malaysian property
market is not ideal as the sector is expected to continue
its consolidation phase.

Promet chalked up pre-tax loss of 169.7 million Malaysian
ringgit (S$74 million) for the 16 months ended April 1997,
from a pre-tax profit of RM171.1 million in the year-ago
period. According to its 1997 annual report, Promet has
bank borrowings of almost RM260 million.

Kelanamas posted a group pre-tax loss of RM9.2 million for
the 16 months ended April 1997. For the 15 months ended
December 1995, the group posted a pre-tax loss of RM13
million. Its debts amounted to over RM150 million.

Rekapacific itself -- 32 per cent owned by Mr Ling's
Linksun Avenue -- is in trouble. It posted a pre-tax loss
of RM35.2 million for the half-year ended October 1997
against a pre-tax profit of RM80.4 million in 1996. In
addition, tycoon Rashid Hussain has slapped Rekapacific
with a winding-up petition for unpaid debt of RM374.7
million. Rekapacific has disputed the debt and will
challenge the notice filed by RHB Equities, a subsidiary of
listed RHB Capital.

Mr Ling's Rekapacific bought the 17 per cent stake in
Promet and the 32 per cent block in Kelanamas from Mr Soh
in 1996. Mr Soh remained as CEO of the two Rekapacific
units. But relations between the two businessmen soured
earlier this year. Following the strain in the
relationship, Mr Ling's father, who is also the president
of the Malaysian Chinese Association -- part of the ruling
National Front coalition -- ordered Mr Soh to quit all his
major posts in the political party.


SERBA PERSPEKTIF SDN BHD: Winding-up petition
---------------------------------------------
Elite Metal Industries Sdn Bhd on 3/11/98 petitioned for
the winding-up of Serba Perspektif Sdn Bhd. The petition is
directed to be heard on 14/4/99.


TASK CIRCLE (M) SDN BHD: Winding-up petition
--------------------------------------------
Gelumbang Jaya Sdn Bhd on 27/10/98 petitioned for the
winding-up of Task Circle (M) Sdn Bhd. The petition is
directed to be heard on 19/3/99.


TENAGA NASIONAL: Currency swap forces loan cuts
-----------------------------------------------
Singapore Business Times reports Tenaga Nasional Bhd said
it has cut its borrowing costs by some 20 per cent
following its recent currency swap exercise to re-balance
its foreign loans portfolio, Malaysian Business Times
quoted vice-president of finance Syed Fahkri Barakbah as
saying. He said Tenaga Nasional converted US$1 billion
(S$1.66 billion) in loans to yen loans several months ago.

Tenaga undertook currency and interest rate swaps, and an
interest rate collar in multiple tranches, while
maintaining the original five to nine-year tenure of the US
dollar loans. The company has also entered into several
agreements to swap fixed interest rates for floating ones
and vice-versa, Syed Fahkri said. Tenaga re-balanced the
group's loan mix to 33 per cent exposure to the US dollar
from 41 per cent as of Aug 31. Its yen borrowings rose to
27 per cent from 16 per cent, while its ringgit exposure
fell to 38 per cent from 41 per cent, he said. Tenaga hopes
to achieve a loan mix of 40-60 per cent in ringgit, 10-30
per cent in dollars and 5-15 per cent in European and other
currencies, he added.

Tenaga is one of Malaysia's largest private debtors. Its
total debt stands at 23 billion ringgit (S$10 billion),
about two-thirds of which are denominated in foreign
currencies.

Yesterday Tenaga named HSBC Markets lead arranger to help
sell between RM300 million and RM500 million of fixed-rate
bonds. The bond, which may be launched by end-December,
will mature in 2006, said Hong Aik Sai, managing director
of capital markets at HongkongBank here.


TRADELAND ENTERPRISE SDN BHD: Voluntary winding-up
--------------------------------------------------
The members of Tradeland Enterprise Sdn Bhd on 30/11/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 9/1/99.


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

PHILIPPINE AIRLINES: Creditors get 15 days to comment
-----------------------------------------------------
The Asian Wall Street Journal reports creditors of
Philippine Airlines (PAL) have been given 15 days to review
and comment on the rehabilitation plan that was submitted
to the Philippine Securities Exchange Commission. The
commission has also organized a special task force charged
with preparing recommendations concerning this plan within
the next 30 days.

This plan reportedly calls for the infusion of $150 million
in fresh equity, reduction of fleet size, cutting overhead
costs, and eventually finding a strategic partner. However,
this plan was released a week after negotiations over a
possible investment in PAL by Cathay Pacific Airways broke
down.


PHILIPPINE AIRLINES: Estrada maintains hopes in Cathay
------------------------------------------------------
According to the South China Morning Post, officials with
the Philippine Government insist Cathay Pacific Airways is
back in talks to bail out bankrupt Philippine Airlines
(PAL) despite Cathay's continued denials.

Philippine Finance Secretary Edgardo Espiritu said PAL
shareholders, including Mr Lucio Tan, were willing to
concede management of PAL if Cathay and its partners were
willing to increase the amount of cash it planned to inject
into PAL. So presumably Cathay is only willing to invest
less than the amount of about US$60 million that PAL had
expressed it wished to have.

A Cathay source said since the company's withdrawal from
negotiations last week, informal approaches had been made
by Philippine parties related to PAL's eagerness to resume
talks to rescue PAL. However, Cathay's due diligence work
had stopped and the team had returned from Manila. The
source also denied that Philippine president Joseph Estrada
had called a meeting between Cathay and PAL, saying no
invitations had been received and so there was no question
of the rumor of Cathay's snub.

Mr Estrada yesterday continued his stance of not giving up
on the possibility of a tie-up between the two companies,
saying he was scheduling talks by the end of the week
between the two parties concerned.

Mr Espiritu said Cathay was concerned mainly about
constitutional provisions that could limit its ability to
take full management control of PAL.

According to the Hong Kong Standard, Cathay spokesman said
Cathay's situation had not changed and there was not much
point in going back to the negotiating table. His
statements were in response to Mr Espiritu's announcement
yesterday that he would try to bring the two sides back to
negotiation.

PAL executive vice president Manolo Aquino told the paper
that PAL welcomed the government's efforts in trying to
resume talks, and he said PAL majority shareholder Lucio
Tan was willing to hand over management of PAL to Cathay,
but there could be a problem with a foreign company
operating a public utility, which PAL was trying to resolve
before the talks were called off.


PHILIPPINE LONG DISTANCE: First Pacific denies Marcos claim
-----------------------------------------------------------
Singapore Business Times reports First Pacific Co of
Hongkong said it is confident that shares it bought in
Philippine Long Distance Telephone Co last month aren't
owned by former first lady Imelda Marcos. Mrs Marcos, whose
late husband Ferdinand Marcos was ousted by a popularly
backed military revolt in 1986, has said she owns most of
the shares First Pacific purchased for US$750 million
(S$1.24 billion), Malaya newspaper reported.

Her lawyers also notified First Pacific managing director
Manuel Pangilinan that she has the right of first refusal
for shares in Philippine Telecommunications Investment
Corp, PLDT's largest stockholder with a 21 per cent stake,
the newspaper said.

"We have done a full and careful legal due diligence, and
we're entirely comfortable with our rightful ownership of
these PLDT shares," said Bob Sherbin, a spokesman for First
Pacific.

First Pacific, an investment arm of Indonesia's Salim
Group, paid US$750 million on Nov 24 to buy a controlling
17.2 stake in PLDT, the Philippines' largest phone company.  
That transaction included the purchase of 53 per cent of
Philippine Telecommunications Investment from PLDT
president Antonio Cojuangco and other shareholders for
US$552 million.

Ms Marcos' claim is part of a 500 billion peso (S$21.3
billion) lawsuit she is planning to reclaim assets that she
says belonged to her late husband and were entrusted to his
associates.


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

PACIFIC ANDES: Results announcement
-----------------------------------
Singapore Business Times reports fishing and frozen seafood
trader Pacific Andes suffered a sharp drop in net interim
earnings, and blames the Asian flu for its malaise.

For the half-year ended Sept 30, the locally-listed
Hongkong-based group posted a 63 per cent fall in after-tax
profit to HK$16.14 million (S$3.5 million) on turnover of
HK$729.66 million (down 2.7 per cent). Earnings per share
likewise fell to 8.43 HK cents, and net tangible asset
backing per share stood at 278 HK cents, from 254 HK cents
previously.

To stay focused on its core business, Pacific Andes sold
its 51 per cent stake in Maritime Pacific Investment Group
in early October for HK$24.8 million, making a net profit
of about HK$317,000.


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

ALPHATEC: Creditors have problem with restructuring
---------------------------------------------------
The Asian Wall Street Journal reports creditors have
delayed a vote on a restructuring plan for Alphatec
Electronics PCL, a debt ladened Thai chip assembler.  
Alphatec's largest creditor, the Krung Thai Bank, has
raised concerns about key elements of the restructuring
plan which calls for creditors to write off 90 percent of
Alphatec's $363 million debt. In return, creditors would
get a 20 percent equity stake in the company, plus
additional returns if the company meets long-term
performance goals.  

According to the report, representatives from Krung Thai
Bank said that their board of directors is not prepared to
write off so much debt. They also object to the structure
of the reform package which essentially creates a new
company with the assets of Alphatec.  

This article also cited Alphatec's president as saying that
the company will run out of cash to cover payroll in
January. He also stated that Alphatec has identified new
customers that could increase the utilization of their
plant's production capacity, but that these new customers
will not sign on until Alphatec's financial problems are
resolved.

The Wall Street Journal says if the restructuring plan
crumbles, creditors say, the failure will represent a big
step backward for Thailand's own financial restructuring,
which could hurt investor sentiment in what many believe is
Asia's fastest-reforming economy.

The Journal calls Alphatec a unique case. To date,
creditors have been reluctant to push their defaulted
clients into bankruptcy, fearful of placing much faith in
the new law. That has slowed the whole restructuring
process.

In the case of Alphatec, creditors saw few alternatives to
that route. The majority shareholder, Charn Uswachoke, was
accused of doctoring Alphatec's books before it collapsed;
he then blocked restructuring efforts in March. (Mr. Charn
has denied any wrongdoing.)

If Alphatec is restructured under court supervision, some
hope it will embolden creditors to use the courts and speed
up the process of reform.


MALEE SAMPRAN: Aims to pay down debt
------------------------------------
The Bangkok Post reports armed with fresh funds from a
foreign investment bank, Malee Sampran Plc is looking to
become a regional and global player in the manufacture and
distribution of canned foods and fruit. The private equity
division of Credit Suisse First Boston agreed last month to
invest 1,020 million baht to buy 20 million convertible
preferred shares and to exercise its rights on 29.99
million units of warrants to subscribe to Malee's common
shares.

The convertible preferred shares were priced at 18 baht
each while the rights exercise price was 22 baht. As a
result, Malee's capital will increase to 999.99 million
baht from 500 million. Malee would use the funds used to
expand overseas, reduce its debts and increase production
efficiency, chairman Chatchai Boonyarat said yesterday.

The newly issued shares have made Credit Suisse First
Boston the largest shareholder in the company with a 28.6%
stake, but Malee Sampran will still control management.
Credit Suisse will send three representatives to sit on the
Malee board, which will increase to 15 members.

The investment bank has further plans for the Asia-Pacific
region, according to John Harrison, managing director of
Credit Suisse First Boston Private Equity. The division has
invested in New Zealand, Indonesia and Thailand so far.
Before investing in any company, Credit Suisse First Boston
considered both the economic policy of the country and the
status of the company, he said.

Malee Sampran is the first major Credit Suisse investment
in Thailand.

Malee expects its exports to reach almost one billion baht
this year, only slightly lower than its target due to a
shortage of local raw materials, managing director Banchong
Chitchang said.

At the end of the third quarter this year, Malee had 700
million baht in debt and had 500 million baht of
shareholder equity, for a debt:equity ratio of 1.4:1. The
new share issue will increase shareholder equity to 860
million baht and improve the ratio.
  

PTT EXPLORATION: Agency downgrades PTTEP to 'performer'
-------------------------------------------------------
The Bangkok Post reports Goldman Sachs has downgraded the
rating of PTT Exploration and Production Plc (PTTEP), the
upstream affiliate of the Petroleum Authority of Thailand,
to "market performer" from "market outperformer". The
investment bank attributed the downgrade to reports of
project delays, limited scope for positive surprises over
the next nine months, and the impact of the stronger baht
on PTTEP's earnings.

In a report received by Reuters yesterday, Goldman Sachs
said delays for three PTTEP projects were imminent.


SRITHAI SUPERWARE: Debt deal nears completion
---------------------------------------------
The Bangkok Post reports Srithai Superware Plc, Thailand's
biggest maker of household and industrial plastic goods,
says debt restructuring agreements with its creditors are
near. No details about the plan to restructure debt
totalling $146 million have been released. Srithai and its
prospective partner, Berli Jucker Plc, will hold a press
conference together when the plan is ready.

Berli, a trading arm of Hong-Kong-based First Pacific Co,
in July signed a memorandum with Srithai, backing its
intention to buy a stake in the Thai plastic products
maker. Berli would inject 1.26 billion baht, more than
triple Srithai's current market value. A capital increase
is an essential part of Srithai's efforts to restructure
debt, which more than triples the company's equity of two
billion baht as of September 30. The $146-million debt
comprises $86 million in straight loans and $60 million in
10-year convertible bonds due in 2006.

Srithai began negotiating with its creditors in November
last year, after the baht's depreciation worsened its debt,
and has so far been allowed to delay repayment of
principal.


THAI PETROCHEMICAL: Progress affects loans to others
----------------------------------------------------
A Wall Street Journal article highlights the bad debt of
$4.5 billion owed by Thai tycoon Prachai Leophairatana.
Bankers once competed with each other to lend to Mr.
Prachai, helping him build his grandfather's humble rice-
trading business into a petrochemical powerhouse. But when
the Thai baht collapsed last year, Mr. Prachai's debt-laden
companies were among the first to stop repaying loans. He's
been battling with his bankers since.

The progress of those negotiations has become a litmus test
for gauging how economic reform has taken root in Asia. The
results so far don't bode well. Until more companies like
Mr. Prachai's Thai Petrochemical Industry PCL reach deals
with their bankers, the bankers can't begin to lend cash to
other would-be borrowers, including the healthy ones that
Asia desperately needs to spearhead a recovery.

"TPI is a bellwether for corporate restructuring in
Thailand," said the general manager of a U.S. bank in
Bangkok. And Thailand, he notes, is supposed to be the
International Monetary Fund's star pupil and the Asian
nation furthest along in its restructuring efforts.

Thai Petrochemical's creditors are to vote in the next few
weeks on a plan to restructure $3.2 billion in bad debts.
Some creditors say the plan gives away too much to Thai
Petrochemical and to Mr. Prachai. The International Finance
Corp., a lending window of the World Bank, has already
declared its opposition to the deal. Reaching a compromise
won't be easy, given that some creditors have long doubted
that TPI is negotiating in food faith and have started
calling for Mr. Prachai's ouster.


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

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

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

This material is copyrighted and any commercial use,
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forwarding, electronic re-mailing and photocopying) is
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