TCRAP_Public/981216.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R    =20
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             A S I A   P A C I F I C     =20

      Wednesday, December 16, 1998, Vol. 1, No. 208

                    Headlines


* C H I N A   &   H O N G   K O N G *

BILIHILL INVESTMENT LIMITED: Winding-up order
BILLION FINANCE: Chief gets six months for bogus bank
CARRIAN HOLDINGS: In members' voluntary liquidation
CHONGQING YUGANG TIOXIDE: Firms face delisting after losses
FIELDWORKS CONTRACTOR COMPANY LIMITED: Winding-up petition=20

FLYING CRANE (H.K.) LIMITED: Winding-up petition=20
GRBG LIMITED: Winding-up order=20
GOLD MANOR LIMITED: Winding-up petition
GUANGZHOU INTERNATIONAL: Cash-short Gzitic in US$200m debt
HANDGREAT INTERNATIONAL LIMITED: Winding-up order

MARK UNICORN DEVELOPMENT LIMITED: Winding-up petition=20
MEITON FORETRADE LIMITED: Winding-up petition=20
PACIFIC PALISADES: S&P places ratings on CreditWatch
SHANGHAI SAIC: Firms face delisting after losses
SING TAO HOLDINGS: Sing Tao shares suspended

STONE COMPANY LIMITED: Winding-up petition
THEME INTERNATIONAL: Theme stake sale hits legal hurdle
VISION TECHNOLOGY LIMITED: Winding-up petition=20
WING LEE INTERNATIONAL HOLDINGS: Wing Lee signs with RTT
WING SENG ENTERPRISES LIMITED: Winding-up order


* J A P A N *

DAIWA BANK LTD: Same Moody's rating as Nippon Credit
NIPPON CREDIT: Chuo Trust to watch NCB nationalization
NIPPON CREDIT: Takeover angers financial institutions=20
YASUDA TRUST: Same Moody's rating as Nippon Credit


* K O R E A *

BLUEHILL: Brands return to bankrupt stores
DAEWOO: Creditors finalize chaebol restructuring accords
HYUNDAI: Creditors finalize chaebol restructuring accords
KOREA FIRST BANK: HSBC completes debt, assets evaluation=20
LG: Creditors finalize chaebol restructuring accords

LG SEMICON: Feeling the heat from being cool to merger
MIDOPA: Brands return to bankrupt stores
NEW CORE: Brands return to bankrupt stores
SK: Creditors finalize chaebol restructuring accords
SAMSUNG: Creditors finalize chaebol restructuring accords

SEOULBANK: HSBC completes debt, assets evaluation


* M A L A Y S I A *

EURO-MIX INDUSTRIES SDN BHD: Winding-up petition
JAMIN JAYA SDN BHD: Winding-up petition
MTP PLASTIC INDUSTRIES SDN BHD: Voluntary winding-up
RENONG: Renong urged to settle dispute
TECK GUAN MOTORS SDN BHD: Winding-up petition


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

PHILIPPINE AIRLINES: Government will ask Japan to help PAL


* S I N G A P O R E *

CEREBOS PACIFIC: Results announcement
F&N COCA-COLA: Results announcement
VAN DER HORST: Sells stake in Asia Power to reduce debt


* T H A I L A N D *

ALPHATEC: Creditors reject debt rehabilitation plan
BANGKOK MILK PRODUCTS: Thai Dairy demands payment
BIJOUX: Faces possible delisting on independent directors
COMPASS EAST INDUSTRY: Results announcement
TOTAL ACCESS: TOT board to meet on TAC debts Tuesday


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C H I N A   &   H O N G   K O N G
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BILIHILL INVESTMENT LIMITED: Winding-up order
---------------------------------------------
A notice for a winding-up order dated December 2, 1998 for=20
Bilihill Investment Limited appeared in the Hong Kong=20
Standard on December 11. The Registered Office is Shop R1,=20
2nd Floor, China Hong Kong City, 33 Canton Road, Kowloon,=20
Hong Kong. The petition was presented on November 3, 1998.


BILLION FINANCE: Chief gets six months for bogus bank
-----------------------------------------------------
According to the South China Morning Post, Billion Finance=20
chairman Simon Chan Ying-ming was jailed for six months=20
yesterday for running a bogus bank that squandered $100=20
million of depositors' cash. He was slated by the judge
for taking "unacceptable risk" with clients' money by=20
flouting the law.

The court heard during the trial that Chan used elaborate=20
certificates of deposit and actively touted for clients,=20
who in turn banked on his standing in society as a surety=20
on the money. There is little prospect for many depositors=20
to recover a fraction of their money.=20

Billion Finance was set up in February 1993 and operated=20
until February this year when it became known the company=20
was in difficulty, sparking a run on deposits. Complaints=20
were lodged with Commercial Crime Bureau when clients=20
failed to recoup their money.=20

A criminal bankruptcy order was sanctioned by the judge who=20
said Chan's assets should be crystallised in light of=20
Billion Finance's collapse.


CARRIAN HOLDINGS: In members' voluntary liquidation
---------------------------------------------------
A notice in the Hong Kong Standard dated December 11 shows=20
a a meeting of members of Carrian Holdings Limited will be=20
held on Jan 5, 1999 at  15th Floor, Hutchison House, 10=20
Harcourt Road, Central, Hong Kong at 11:00 am to be=20
followed at 11:30 am by a meeting of the creditors for the=20
purpose of receiving an account of the liquidators' acts=20
and dealings and of the conduct of the winding up of the=20
company during the preceding year. Joint and Several=20
Liquidators: Thomas Brian Stevenson, Wilfred Keith Timso,=20
and John William Crawford.


CHONGQING YUGANG TIOXIDE: Firms face delisting after losses
-----------------------------------------------------------
According to the Hong Kong Standard, Shanghai-listed=20
company Shanghai SAIC Multiple Trading and Shenzhen-listed=20
company Chongqing Yugang Tioxide could be delisted soon due=20
to a likely third consecutive year of losses, the China=20
Securities newspaper said yesterday. The companies reported=20
losses for the previous two years and have made it clear=20
they were unable to reverse their losses this year.


FIELDWORKS CONTRACTOR COMPANY LIMITED: Winding-up petition=20
----------------------------------------------------------
A petition for the winding up of Fieldworks Contractor=20
Company Limited was presented to the High Court on Nov 24=20
by Yip Chi Wah of No 104 Lin Fa Tei Village, Pat Heung,=20
Yuen Long, New Territories, and the said petition is=20
directed to be heard before the court at 9:30 a.m. on Dec=20
30, and any creditor or contributory of the said  company=20
desirous to support or oppose the making of an order on the=20
said petition may appear at the time of hearing by himself=20
or his counsel for that purpose, and a copy of the petition=20
will be furnished to any creditor or contributory of the=20
said company requiring the same by Tam Lee Po Lin, Nina for=20
Director of Legal Aid, 27th Floor, Queensway Government=20
Offices, 66 Queensway, Hong Kong, on payment of the=20
regulated charges for the same.


FLYING CRANE (H.K.) LIMITED: Winding-up petition=20
------------------------------------------------
A petition for the winding up of Flying Crane (H.K.)=20
Limited was presented to the High Court on Nov 24 by Lee=20
Kin Wai of Room 2107, Ting Fuk House, On Ting Estate, Tuen=20
Mun, New Territories, and the said petition is directed to=20
be heard before the court at 9:30 a.m. on Dec 30, and any
creditor or contributory of the said company desirous to=20
support or oppose the making of an order on the said=20
petition may appear at the time of hearing by himself or=20
his counsel for that purpose, and a copy of the petition=20
will be furnished to any creditor or contributory of the=20
said company requiring the same by Tam Lee Po Lin, Nina for=20
Director of Legal Aid, 27th Floor, Queensway Government=20
Offices, 66 Queensway, Hong Kong, on payment of the=20
regulated charges for the same.


GRBG LIMITED: Winding-up order=20
------------------------------
A notice for a winding-up order dated December 2, 1998 for=20
GRGB Limited (formerly known as Godown Restaurant Bar &=20
Grill Limited) appeared in the Hong Kong Standard on=20
December 11. The Registered Office is 8th Floor, Ruttonjee=20
House, 11 Duddell Street, Central, Hong Kong. The petition=20
was presented on August 31, 1998.


GOLD MANOR LIMITED: Winding-up petition
---------------------------------------
A petition for the winding up of Gold Manor Limited was=20
presented to the High Court on Nov 19 by Lee Chi Wah of=20
Room 903, Yiu Wing House, Yiu On Estate, Ma On Shan,=20
Shatin, New Territories, and the said petition is directed=20
to be heard before the court at 9:30 a.m. on Dec 23, and=20
any creditor or contributory of the said company desirous=20
to support or oppose the making of an order on the said=20
petition may appear at the time of hearing by himself or=20
his counsel for that purpose, and a copy of the petition=20
will be furnished to any creditor or contributory of the=20
said company requiring the same by Tam Lee Po Lin, Nina for=20
Director of Legal Aid, 27th Floor, Queensway Government=20
Offices, 66 Queensway, Hong Kong, on payment of the=20
regulated charges for the same.


GUANGZHOU INTERNATIONAL: Cash-short Gzitic in US$200m debt
----------------------------------------------------------
According to the South China Morning Post and the Hong Kong=20
Standard, a source close to Guangzhou International Trust &=20
Investment Corp (Gzitic) said that it had far from=20
sufficient cash to repay foreign debts of more than US$200
million due this month. The firm reportedly missed a US$5=20
million payment on a letter of credit last week.

According to the South China Morning Post, it was=20
understood to have stopped repaying bilateral and=20
syndicated loans, but bankers said the firm was trying to
pay some of the interest. This followed the revelation in=20
October of a default on a payment by the firm on a US$30=20
million syndicated loan.

A foreign bank official said Gzitic had failed to come up=20
with any assurance of the necessary steps it would take to=20
solve the liquidity crunch and repay the debt.

Bankers were pinning their hopes on the likelihood of=20
support from the Guangzhou municipal government, but unlike=20
the Tianjin Itic, Guangzhou municipal government did not=20
make any public pledges that Gzitic would be able to honor=20
its debt commitment. Gzitic is one of the five Itics
cited by Salomon Smith Barney as relatively high risks. It=20
was cited as being characterised by its large size, high=20
proportion of loans and investments on its balance sheet,=20
moderate capital adequacy, weak profitability and weak=20
liquidity.

According to the Hong Kong Standard, the company's finance=20
officer, Jason Chan, said that the company was struggling=20
to raise enough funds to repay foreign debts of less than=20
$100 million.

On the matter regarding the study by Salomon Brothers, the=20
report said that the study showed that the capital adequacy=20
ratio of the group, which included relatively high-risk=20
companies, had been stable and median equity over total=20
assets has hovered between 13 and 15 per cent.

Ivan Lee, regional head of fixed income credit research in=20
Hong Kong with Salomon Smith Barney, said Beijing in the=20
future was likely to bail out failed Itic's foreign debts=20
if they had been properly registered with the State=20
Administration for Foreign Exchange.
=20
Comparing the financial profiles of 15 major Itics, he said=20
their asset growth has slowed since 1995, from 10.3 per=20
cent to 4.9 per cent in 1997, reflecting the economic=20
austerity program and the central government's gradual=20
tightening of control over Itics. He said while loans and=20
investments still accounted for the majority of local=20
assets, they continued to drop as a percentage of total=20
assets from 71.4 per cent in 1995 to 63.7 per cent in 1997,=20
showing that Itics have been diversifying into new ventures=20
with income from securities operations becoming=20
increasingly important. Profitability fell, as return on
average assets fell from 1.8 per cent in 1995 to 1.5 per=20
cent in 1997.


HANDGREAT INTERNATIONAL LIMITED: Winding-up order
-------------------------------------------------
A notice for a winding-up order dated December 2, 1998 for=20
Handgreat International Limited appeared in the Hong Kong=20
Standard on December 11. The Registered Office is 5/F., May=20
Gar Comm'l Bldg., 288-290 Reclamation Street, Kowloon. The=20
petition was presented on November 2, 1998.


MARK UNICORN DEVELOPMENT LIMITED: Winding-up petition=20
-----------------------------------------------------
A petition for the winding up of Mark Unicorn Development=20
Limited was presented to the High Court on Nov 20 by Lai=20
Chun Wa of Room 2001, Yin Fat House, Cheung Fat Estate,=20
Tsing Yi, New Territories, and the said petition is=20
directed to be heard before the court at 9:30 a.m. on Dec=20
23, and any creditor or contributory of the said  company=20
desirous to support or oppose the making of an order on the=20
said petition may appear at the time of hearing by himself=20
or his counsel for that purpose, and a copy of the petition=20
will be furnished to any creditor or contributory of the=20
said company requiring the same by Tam Lee Po Lin, Nina for=20
Director of Legal Aid, 27th Floor, Queensway Government=20
Offices, 66 Queensway, Hong Kong, on payment of the=20
regulated charges for the same.


MEITON FORETRADE LIMITED: Winding-up petition=20
---------------------------------------------
A petition for the winding up of Meiton Foretrade Limited=20
was presented to the High Court on Nov 19 by Ng Tsan Hung=20
of Flat C, 11th Floor, Yue Fung Building, 98 Fuk Wa Street,=20
Sham Shui Po, Kowloon, and the said petition is directed to=20
be heard before the court at 9:30 a.m. on Dec 23, and any=20
creditor or contributory of the said company desirous to
support or oppose the making of an order on the said=20
petition may appear at the time of hearing by himself or=20
his counsel for that purpose, and a copy of the petition=20
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for=20
Director of Legal Aid, 27th Floor, Queensway Government=20
Offices, 66 Queensway, Hong Kong, on payment of the=20
regulated charges for the same.


PACIFIC PALISADES: S&P places ratings on CreditWatch
----------------------------------------------------
Singapore Business Times reports credit rating agency=20
Standard & Poors has placed the ratings for US$134.5=20
million (S$221.2 million) worth of debt papers secured on=20
the rental income of Ng Teng Fong's Pacific Palisades under=20
review, as the interest coverage situation has=20
deteriorated. Pacific Palisades, securitised under Pacific=20
Palisades Funding Ltd for US$98.8 million floating rate=20
notes due Nov 2001 and another =9C22.5 million (S$62.4=20
million) fixed rate notes due Nov 2001 was placed on S&P's=20
CreditWatch with "negative implications", S&P said.=20

Pacific Palisades, an investment property in Braemar Hill=20
in Hongkong, is 20 per cent owned by Hongkong-listed Sino=20
Land and 80 per cent by the Ng family. In Nov 1996, the=20
owner of the property securitised the rental income of the=20
property units to raise money for future expansion and debt=20
repayment.=20

Diane Lam, an analyst with S&P, said while the rating=20
agency expects further deterioration of the cashflow from=20
the property, it does not expect any negative cashflow for=20
the papers, meaning the interest coverage was unlikely to=20
dip below one time. She reckoned there is still very good=20
asset coverage for the papers as any potential sale of the=20
property would yield good value for note holders.=20


SHANGHAI SAIC: Firms face delisting after losses
------------------------------------------------
According to the Hong Kong Standard, Shanghai-listed=20
company Shanghai SAIC Multiple Trading and Shenzhen-listed=20
company Chongqing Yugang Tioxide could be delisted soon due=20
to a likely third consecutive year of losses, the China=20
Securities newspaper said yesterday. The companies reported=20
losses for the previous two years and have made it clear=20
they were unable to reverse their losses this year.


SING TAO HOLDINGS: Sing Tao shares suspended
--------------------------------------------
According to the Hong Kong Standard, shares in Sing Tao=20
Holdings were suspended yesterday pending an announcement=20
relating to the sale of Sally Aw Sian's shares in the=20
company. It is understood the announcement was submitted to=20
the Stock Exchange of Hong Hong last night, but was=20
returned to solicitors for the companies involved for=20
clarification of a technicality. The announcement is=20
expected to be made later today.


STONE COMPANY LIMITED: Winding-up petition
------------------------------------------
A petition for the winding up of Stone Company Limited was
presented to the High Court on Nov 25 by Chan Kwoon Yue of=20
Room 421, Hoy Kong Lau, Yue Kwong Chuen, Aberdeen, Hong=20
Kong, and the said petition is directed to be heard before=20
the court at 9:30 a.m. on Dec 30, and any creditor or=20
contributory of the said company desirous to support or=20
oppose the making of an order on the said petition may=20
appear at the time of hearing by himself or his counsel for=20
that purpose, and a copy of the petition will be furnished=20
to any creditor or contributory of the said company=20
requiring the same by Tam Lee Po Lin, Nina for Director of=20
Legal Aid, 27th Floor, Queensway Government Offices, 66=20
Queensway, Hong Kong, on payment of the regulated charges=20
for the same.


THEME INTERNATIONAL: Theme stake sale hits legal hurdle
-------------------------------------------------------
The South China Morning Post has reported today the legal=20
battle between Theme International Holdings and SCM China=20
Growth Fund LDC. According to the South China Morning Post=20
today, Theme last month announced a $806.62 million net=20
loss for the year to March, including a $49.53 million
provision against its investment in Fitlady. In October,=20
the company signed a standstill agreement with 11 of its 12=20
bank creditors for loans totalling $242 million.


VISION TECHNOLOGY LIMITED: Winding-up petition=20
----------------------------------------------
A petition for the winding up of Vision Technology Limited=20
was presented to the High Court on Nov 27 by T.N.C.=20
Industrial Company Limited of  19th Floor, T.N.C. Building,=20
1205 Chung Cheng Road, Taoyuan, Taiwan, and the said=20
petition is directed to be heard before the court at
9:30 a.m. on  Dec 30, and any creditor or contributory of=20
the said company desirous to support or oppose the making=20
of an order on the said petition may appear at the time of=20
hearing by himself or his counsel for that purpose, and a=20
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by the=20
Solicitors for the Petitioner, Chan & Si, Room 601, Tung=20
Ning Building, 2 Hillier Street, Sheung Wan, Hong Kong, on=20
payment of the regulated charges for the same.


WING LEE INTERNATIONAL HOLDINGS: Wing Lee signs with RTT
--------------------------------------------------------
According to the South China Morning Post, Wing Lee=20
International Holdings signed up with Hutchison Port=20
Holdings' River Trade Terminal (RTT) for an estimated
250,000 teu per annum facility. The company will give up=20
its public cargo working area in Tsuen Wan when it begins=20
using RTT from January 1.=20

RTT director and general manager John Wan said that by=20
signing on with RTT, Wing Lee is passing on its fixed costs=20
to RTT, which as a common user terminal, was charging only=20
$320 per teu plus three days free storage, cheaper than=20
parking a car at a public car park for three days.=20

Wing Lee chairman Francis Chow said with RTT's container=20
handling services, damage to containers would be minimised.=20
Separately he said Emperor International Holdings' major=20
shareholder Albert Yeung Sau-shing had assured him he would=20
not take over Wing Lee and that Mr Chow would remain as=20
chairman.


WING SENG ENTERPRISES LIMITED: Winding-up order
-----------------------------------------------
A notice for a winding-up order dated December 2, 1998 for=20
Wing Seng Enterprises Limited appeared in the Hong Kong=20
Standard on December 11. The Registered Office is C1, 7th=20
Floor, Hankow Centre, 1C Middle Road, Tsimshatsui, Kowloon.=20
The petition was presented on September 25, 1998.


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DAIWA BANK LTD: Same Moody's rating as Nippon Credit
----------------------------------------------------
An Agence France-Presse article that appeared in the Korea=20
Herald reports there are at least two other Japanese banks=20
that have the same Moody's rating as did the Nippon Credit=20
Bank Ltd., which the government declared insolvent this
week. =20

Yasuda Trust and Banking Company and Daiwa Bank Ltd. both=20
have a Moody's Investor Services rating of Baa3, the rating=20
held by Nippon Credit Bank when the government took it=20
over. The report mentioned that all 29,000 shareholders of=20
the Nippon Credit Bank have probably lost their money now.
Shares of Yasuda and Daiwa slid an average of 4.3 percent=20
the day after the Nippon takeover.


NIPPON CREDIT: Chuo Trust to watch NCB nationalization
------------------------------------------------------
Nikkei reports Chuo Trust & Banking Co. will closely=20
monitor events following the government's decision to place=20
troubled Nippon Credit Bank under temporary state control,=20
Managing Director Hideie Hirakawa told the Nihon Keizai=20
Shimbun on Monday. Chuo Trust is widely viewed as the top=20
candidate to take over NCB's operations after the=20
government supervision ends. The trust bank had been=20
approached by NCB for a merger, but instead agreed last=20
Wednesday to a partial business tie-up.

"It was surprising and regrettable to hear the news of=20
nationalization immediately after we announced our=20
alliance," Hirakawa said. "NCB told us the bank would=20
classify and dispose of bad loans this fiscal year in line=20
with the new standards set by the Financial Supervisory=20
Agency."

Asked about merger negotiations with NCB, Hirakawa said the=20
two sides "have long maintained a close relationship and=20
occasionally exchanged opinions on a possible alliance,=20
merger or a holding company."


NIPPON CREDIT: Takeover angers financial institutions=20
-----------------------------------------------------
Nikkei reports the government's plan to temporarily take=20
control of Nippon Credit Bank is drawing fire within=20
Japan's financial sector as major banks and insurers are=20
likely to see their investments in NCB wiped out. In April=20
1997, 22 insurance companies that extended subordinated=20
loans to NCB and 12 banks that were major shareholders=20
accepted a Ministry of Finance request to buy 210 billion=20
yen worth of new shares issued by NCB to help rescue the=20
troubled bank. Those financial institutions are now certain=20
to incur massive losses on their investment in NCB,=20
analysts said.

Banks also feel threatened by the method employed by the=20
government to judge NCB insolvent. Under the system, which=20
requires simultaneous posting of loan-loss reserves with=20
the occurrence of bad debts, most banks are likely to see a=20
sharp fall in shareholder equity.


YASUDA TRUST: Same Moody's rating as Nippon Credit
--------------------------------------------------
An Agence France-Presse article that appeared in the Korea=20
Herald reports there are at least two other Japanese banks=20
that have the same Moody's rating as did the Nippon Credit=20
Bank Ltd., which the government declared insolvent this
week. =20

Yasuda Trust and Banking Company and Daiwa Bank Ltd. both=20
have a Moody's Investor Services rating of Baa3, the rating=20
held by Nippon Credit Bank when the government took it=20
over. The report mentioned that all 29,000 shareholders of=20
the Nippon Credit Bank have probably lost their money now.
Shares of Yasuda and Daiwa slid an average of 4.3 percent=20
the day after the Nippon takeover.


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BLUEHILL: Brands return to bankrupt stores
------------------------------------------
The Korea Times reports brand-name clothes, foods and=20
accessories are quickly making their way back to bankrupt=20
department stores they had pulled out of at the onset of=20
bankruptcy, feeling comfortable enough to return to the=20
retailers now that the department stores are under court=20
mediation.=20

As soon as New Core and Midopa department stores applied=20
for court mediation, streams of new labels and old brands=20
previously scared off by the stores' bankruptcy began to=20
flow back into the large stores. Bluehill Department Store=20
in Pundang, south of Seoul, is also expecting to add more=20
brands once it starts court mediation.=20

The Seoul branch of New Core Department Store has already=20
seen the return of Cheil Jedang, Young Age and Yves St.=20
Laurent, while the Pyonchon store has reinstated Viki,=20
INVU, Besti Belli and others.=20

Since Midopa Department Store started court mediation in=20
mid-September, Nina Ricci, Nong Shim, Dong-suh Foods and=20
other brands have come back, while Kolong Active, Head,=20
Jack Nicklaus and PGA are planning to reenter soon.=20

"After starting court mediation, business has been=20
returning to normal. Because of this, we are expecting even=20
more brands to come in when we reorganize in the spring and=20
summer next year," said a Midopa official.=20

Several brand names are closely watching over the results=20
of Bluehill's court mediation with labels such as U.N.C.=20
already ready to jump back into the store.=20


DAEWOO: Creditors finalize chaebol restructuring accords
--------------------------------------------------------
The Korea Times reports creditor banks of the nation's five=20
largest conglomerates yesterday finalized drafts of=20
restructuring accords, which will be signed today. Under=20
the draft agreements, units of the big-five business groups=20
will have to implement restructuring in order to decrease=20
their bloated operations. The creditors mapped out the=20
draft accords after the government and owners of the=20
family-run conglomerates, or chaebol, struck an=20
unprecedented deal to speed up corporate reform by=20
introducing inter-group swaps of overlapping businesses.=20

The Daewoo Group has vowed to reduce their number of=20
subsidiaries to 10 from the present 41.=20


HYUNDAI: Creditors finalize chaebol restructuring accords
---------------------------------------------------------
The Korea Times reports creditor banks of the nation's five=20
largest conglomerates yesterday finalized drafts of=20
restructuring accords, which will be signed today. Under=20
the draft agreements, units of the big-five business groups=20
will have to implement restructuring in order to decrease=20
their bloated operations. The creditors mapped out the=20
draft accords after the government and owners of the=20
family-run conglomerates, or chaebol, struck an=20
unprecedented deal to speed up corporate reform by=20
introducing inter-group swaps of overlapping businesses.=20

The Hyundai Group promised to cut its current 63 units to=20
31 in a bid to focus on core businesses, including auto,=20
construction, shipbuilding, electronics and finance.=20


KOREA FIRST BANK: HSBC completes debt, assets evaluation=20
--------------------------------------------------------
According to the Hong Kong Standard, a deputy general=20
manager at SeoulBank said yesterday HSBC conducted an on-
the-spot evaluation of their bank last week. Korea First=20
Bank officials said HSBC had also completed due diligence=20
on their bank.=20

South Korea is seeking to sell SeoulBank and Korea First=20
Bank by December 31 this year, although it has postponed=20
the deadline for auctioning them off to foreign investors=20
until the end of next month. The auction was originally=20
scheduled for November.=20

Apart form HSBC, Citibank is the most frequently cited=20
potential buyer of a Korean bank. Citibank's spokesman=20
Chung Hoi Seung said last month the Citibank wanted to=20
expand in Korea and had examined several local
financial institutions but he declined to say which=20
institutions these were.


LG: Creditors finalize chaebol restructuring accords
----------------------------------------------------
The Korea Times reports creditor banks of the nation's five=20
largest conglomerates yesterday finalized drafts of=20
restructuring accords, which will be signed today. Under=20
the draft agreements, units of the big-five business groups=20
will have to implement restructuring in order to decrease=20
their bloated operations. The creditors mapped out the=20
draft accords after the government and owners of the=20
family-run conglomerates, or chaebol, struck an=20
unprecedented deal to speed up corporate reform by=20
introducing inter-group swaps of overlapping businesses.=20

The LG Group pledged to decrease its number of affiliates=20
from 53 to 32.=20


LG SEMICON: Feeling the heat from being cool to merger
------------------------------------------------------
The Korea Herald reports following the LG Group's=20
unofficial notification that it intended to pull out of the=20
merger deal between the respective semiconductor businesses=20
of the LG and Hyundai Groups, it hurriedly prepared a news=20
release vowing to fully cooperate with consultants working=20
on this deal. =20

In another story in the same paper, President Kim Dae-jung=20
was cited as saying that he expects LG and Hyundai to keep=20
their promise to merge their respective semiconductor=20
businesses, LG Semicon Company and Hyundai Electronics=20
Industry Company. In the interview, the president said that
creditor banks will punish the conglomerate that fails to=20
keep its promise.

Although Hyundai and LG have agreed to share equity in a=20
new merged firm based on a seven to three ratio, which=20
group would get 70 percent, and which would get 30 percent=20
has been an issue of contention. To resolve this dispute,=20
an outside consultant, Arthur D. Little (ADL) of the USA is=20
scheduled to provide a management evaluation that will=20
resolve this issue by December 25. =20

Analysts cited in the newspaper report claim that the LG=20
news release may actually be intended as a way of shifting=20
blame to the ADL in the event merger talks break down. The=20
LG news released mentioned that ADL had selected ambiguous=20
assessment criteria that would be favorable to Hyundai.
Earlier stories also cited LG sources maintaining that LG=20
Semicon is much healthier than the Hyundai counterpart, and=20
that it will be able to make more money than HEI next year.

According to stock market data in newspaper reports in=20
October, the Hyundai and LG semiconductor groups are=20
estimated to have debt-to-equity ratios of 935 percent and=20
617 percent, respectively. =20


MIDOPA: Brands return to bankrupt stores
----------------------------------------
The Korea Times reports brand-name clothes, foods and=20
accessories are quickly making their way back to bankrupt=20
department stores they had pulled out of at the onset of=20
bankruptcy, feeling comfortable enough to return to the=20
retailers now that the department stores are under court=20
mediation.=20

As soon as New Core and Midopa department stores applied=20
for court mediation, streams of new labels and old brands=20
previously scared off by the stores' bankruptcy began to=20
flow back into the large stores. Bluehill Department Store=20
in Pundang, south of Seoul, is also expecting to add more=20
brands once it starts court mediation.=20

The Seoul branch of New Core Department Store has already=20
seen the return of Cheil Jedang, Young Age and Yves St.=20
Laurent, while the Pyonchon store has reinstated Viki,=20
INVU, Besti Belli and others.=20

Since Midopa Department Store started court mediation in=20
mid-September, Nina Ricci, Nong Shim, Dong-suh Foods and=20
other brands have come back, while Kolong Active, Head,=20
Jack Nicklaus and PGA are planning to reenter soon.=20

"After starting court mediation, business has been=20
returning to normal. Because of this, we are expecting even=20
more brands to come in when we reorganize in the spring and=20
summer next year," said a Midopa official.=20

Several brand names are closely watching over the results=20
of Bluehill's court mediation with labels such as U.N.C.=20
already ready to jump back into the store.=20


NEW CORE: Brands return to bankrupt stores
------------------------------------------
The Korea Times reports brand-name clothes, foods and=20
accessories are quickly making their way back to bankrupt=20
department stores they had pulled out of at the onset of=20
bankruptcy, feeling comfortable enough to return to the=20
retailers now that the department stores are under court=20
mediation.=20

As soon as New Core and Midopa department stores applied=20
for court mediation, streams of new labels and old brands=20
previously scared off by the stores' bankruptcy began to=20
flow back into the large stores. Bluehill Department Store=20
in Pundang, south of Seoul, is also expecting to add more=20
brands once it starts court mediation.=20

The Seoul branch of New Core Department Store has already=20
seen the return of Cheil Jedang, Young Age and Yves St.=20
Laurent, while the Pyonchon store has reinstated Viki,=20
INVU, Besti Belli and others.=20

Since Midopa Department Store started court mediation in=20
mid-September, Nina Ricci, Nong Shim, Dong-suh Foods and=20
other brands have come back, while Kolong Active, Head,=20
Jack Nicklaus and PGA are planning to reenter soon.=20

"After starting court mediation, business has been=20
returning to normal. Because of this, we are expecting even=20
more brands to come in when we reorganize in the spring and=20
summer next year," said a Midopa official.=20

Several brand names are closely watching over the results=20
of Bluehill's court mediation with labels such as U.N.C.=20
already ready to jump back into the store.=20


SK: Creditors finalize chaebol restructuring accords
----------------------------------------------------    =20
The Korea Times reports creditor banks of the nation's five=20
largest conglomerates yesterday finalized drafts of=20
restructuring accords, which will be signed today. Under=20
the draft agreements, units of the big-five business groups=20
will have to implement restructuring in order to decrease=20
their bloated operations. The creditors mapped out the=20
draft accords after the government and owners of the=20
family-run conglomerates, or chaebol, struck an=20
unprecedented deal to speed up corporate reform by=20
introducing inter-group swaps of overlapping businesses.=20

SK Group vowed to slash its subsidiary groups from 42 to=20
22.


SAMSUNG: Creditors finalize chaebol restructuring accords
---------------------------------------------------------
The Korea Times reports creditor banks of the nation's five=20
largest conglomerates yesterday finalized drafts of=20
restructuring accords, which will be signed today. Under=20
the draft agreements, units of the big-five business groups=20
will have to implement restructuring in order to decrease=20
their bloated operations. The creditors mapped out the=20
draft accords after the government and owners of the=20
family-run conglomerates, or chaebol, struck an=20
unprecedented deal to speed up corporate reform by=20
introducing inter-group swaps of overlapping businesses.=20

The Samsung Group vowed to reduce their number of=20
subsidiaries to 40 from the present 65.


SEOULBANK: HSBC completes debt, assets evaluation
-------------------------------------------------
According to the Hong Kong Standard, a deputy general=20
manager at SeoulBank said yesterday HSBC conducted an on-
the-spot evaluation of their bank last week. Korea First=20
Bank officials said HSBC had also completed due diligence=20
on their bank.=20

South Korea is seeking to sell SeoulBank and Korea First=20
Bank by December 31 this year, although it has postponed=20
the deadline for auctioning them off to foreign investors=20
until the end of next month. The auction was originally=20
scheduled for November.=20

Apart form HSBC, Citibank is the most frequently cited=20
potential buyer of a Korean bank. Citibank's spokesman=20
Chung Hoi Seung said last month the Citibank wanted to=20
expand in Korea and had examined several local
financial institutions but he declined to say which=20
institutions these were.


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M A L A Y S I A
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EURO-MIX INDUSTRIES SDN BHD: Winding-up petition
------------------------------------------------
Professional Petroleum (M) Sdn Bhd on 7/9/98 petitioned for=20
the winding-up of Euro-Mix Industries Sdn Bhd. The petition=20
is directed to be heard on 8/1/99.


JAMIN JAYA SDN BHD: Winding-up petition
---------------------------------------
Public Bank Bhd on 7/12/98 petitioned for the winding-up of=20
Jamin Jaya Sdn Bhd.


MTP PLASTIC INDUSTRIES SDN BHD: Voluntary winding-up
----------------------------------------------------
The members of MTP Plastic Industries Sdn Bhd on 8/12/98=20
resolved to wind-up the company voluntarily. Creditors are=20
requested to submit their claims before 29/12/98.


RENONG: Renong urged to settle dispute
--------------------------------------
According to the South China Morning Post, Malaysia's=20
Second Finance Minister said Renong should let the central=20
bank's debt arbitration committee settle its dispute with=20
bondholders. Renong is refusing to pay an undisclosed
amount of interest to bondholders who attempted to call in=20
a M$450 million bond, after the company defaulted on loans.=20
Renong won a court injunction to stop the payments last=20
month.

Singapore Business Times cities a Reuters report that the=20
restructuring of Malaysian conglomerate Renong has been=20
handed over to the newly set-up arbitrator, the Corporate=20
Debt Restructuring Committee (CDRC), said Second Finance=20
Minister Mustapa Mohamed yesterday.=20

Renong was the main investment vehicle of Prime Minister=20
Mahathir Mohamad's political party, the United Malays=20
National Organisation (Umno), until it was sold off several=20
years ago. Renong has stakes in 12 Kuala Lumpur-listed=20
companies with interests in construction and engineering,=20
financial services, telecommunications, toll road=20
management, hotels and oil.=20

CDRC was set up by the government last August to help in=20
the restructuring of viable companies with debts of over 50=20
million Malaysian ringgit (S$21.6 million) owing to more=20
than one financial institution. It is not a statutory body=20
and seeking help from it is entirely voluntary.


TECK GUAN MOTORS SDN BHD: Winding-up petition
---------------------------------------------
Public Bank Bhd on 7/12/98 petitioned for the winding-up of=20
Teck Guan Motors Sdn Bhd.


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P H I L I P P I N E S=20
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

PHILIPPINE AIRLINES: Government will ask Japan to help PAL
----------------------------------------------------------
The Asian Wall Street Journal reports the Philippine=20
government will seek help from Japan in rescuing Philippine=20
Airlines (PAL). The Philippines plans to ask for $150=20
million in aid from Japan's $30 billion Miyazawa Fund that=20
will be used to nurse the airline back to health. This
fund was established by Tokyo to help struggling Asian=20
economies. =20

Following the breakdown in negotiations over a possible=20
investment in PAL by Cathay Pacific Airways, a=20
rehabilitation for PAL was submitted to the Philippine=20
Securities Exchange Commission last week. This plan=20
reportedly calls for the infusion of $150 million in fresh=20
equity, reduction of fleet size, cutting overhead costs,=20
and eventually finding a strategic partner.=20

According to the South China Morning Post, Manila stands to=20
get at least $3 billion from the $30 billion Miyazawa fund,=20
which is to help ailing firms struck by the Asian financial=20
crisis restructure their debts.=20

Philippine Finance Secretary Edgardo Espiritu said that for=20
unlisted PAL to qualify it might have to go public. He said=20
yesterday that President Joseph Estrada, who has vowed to=20
keep PAL flying at all costs, still prefers a foreign=20
partner for the troubled airline.


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
S I N G A P O R E
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

CEREBOS PACIFIC: Results announcement
-------------------------------------
Singapore Business Times reports Cerebos Pacific sank into=20
the red for the first time since it was listed some 15=20
years ago. The maker of the famous Brand's Essence of=20
Chicken posted a loss of $8 million for the financial year=20
ended Sept 30, in sharp contrast to its $80.3 million=20
profit the previous year. Sales fell 23 per cent to $489.4=20
million, from $632.3 million a year ago. This translated=20
into a loss of 2.57 cents a share, compared with a profit=20
of 25.7 cents a share a year earlier.

Dragging the company into the red was a hefty $34 million=20
write-off for its inventories in China. Company chief=20
executive officer and president, Eiji (Eddie) Koike, said=20
poor market conditions in that country forced Cerebos to=20
make an additional provision of $24 million in the second=20
half after it had already written off $10 million in the=20
first half. The company, which is 84 per cent owned by=20
Japan's Suntory group, is uncertain if it will be able to=20
clamber back into the black next year.


F&N COCA-COLA: Results announcement
-----------------------------------
Singapore Business Times reports the regional economic=20
crisis and fierce price competition were the main reasons=20
why F&N Coca-Cola (FNCC) reported a disappointing $44.4=20
million loss for the year ended Sept 30. The F&N group on=20
Friday reported a larger-than-expected 74 per cent profit=20
fall for its Sept 30 year-end to $39.9 million. Apart from=20
an anticipated fall in property income, the bottom line was=20
adversely hit by FNCC's performance, especially since it=20
managed a $32.8 million profit before interest and taxes=20
last year.=20


VAN DER HORST: Sells stake in Asia Power to reduce debt
-------------------------------------------------------
Singapore Business Times reports embattled marine-
engineering group, Van Der Horst, has conditionally cashed=20
in an investment in a Philippine electricity producer for a=20
total of $115.5 million to help reduce its crippling debt=20
pile.=20

In a statement released after the market closed last night,=20
VDH said it would sell its 46 per cent shares in Manila-
listed East Asia Power Resources Corp (EAPR) to a Texas gas=20
company for US$20.07 million (S$33 million). It would also=20
sell EAPR's convertible loans for US$49.9 million, yielding=20
a total of US$70 million, or S$115.5 million. The ultimate=20
buyer of the stake is El Paso Energy Corp (EPEC), a mid-cap=20
(US$3.8 billion) gas utility group headquartered in=20
Houston, Texas.=20

Behind VDH's decision to realise the investment lies its=20
own cash-strapped circumstances, as well as the funding=20
needs of its Philippine subsidiary which it could not meet=20
in the circumstances. On Dec. 2, VDH unveiled a shocking=20
bottomline loss of $222 million, which included a provision=20
of $155 million made against possible non-recoverability of=20
money the group is owed, mainly arising from work in=20
progress in Indonesia. The result left the fate of the=20
group, chaired by Indonesian businessman Johannes Kotjo, in=20
the hands of its creditors and bankers.=20

Collectively, the bankrollers of the company were due to be=20
paid $259 million within 12 months by a lender with cash=20
balances of just $3.9 million and total current assets at=20
the time of just $114.6 million. What's more, by the=20
group's own admission, there was something of a shadow=20
hanging over the recoverability of many of those assets.=20

The Philippine subsidiary, meanwhile, had hoped to raise=20
more money to finance an ambitious expansion trail. But=20
faced with a sharply declining share price and unable to=20
tap its parent VDH for additional funding, EAPR turned to=20
US-based MCN Investment Corp for loan finance.


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T H A I L A N D=20
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ALPHATEC: Creditors reject debt rehabilitation plan
---------------------------------------------------
According to the South China Morning Post, creditors of=20
Alphatec Electronics have voted against a five-year=20
rehabilitation plan drafted by financial advisers
PricewaterhouseCoopers, as revealed by managing director of=20
Krung Thai Legal Services Kraisri Keoparadai. Reports said=20
that if passed, the plan would have written down the firm's=20
debt to an estimated US$104 million from $373 million.

Some observers warned before the vote that Alphatec could=20
collapse within weeks if the plan were rejected. =20

According to Mr Kraisri, had the plan been passed,=20
creditors would have held only 20 per cent of two new=20
offshore holding companies via a debt-to-equity swap and=20
new investors would have received an 80 per cent stake. He=20
said the 20 per cent stake in the new companies is=20
insufficient to grant authorisation for creditors to assume=20
management and control operations. He also said Krung Thai=20
Bank does not want to see the collapse of Alphatec but=20
wants it to be rehabilitated.

Asian Wall Street Journal reports in addition to rejecting=20
the plan, the creditors forced the removal of Alphatec's=20
court appointed planner, PricewaterhouseCoopers, which had
formulated the rejected rehabilitation plan.

This article also cited Alphatec's president as saying that=20
the company will run out of cash to pay payroll and=20
suppliers in January. The president further suggested that=20
he could be appointed planner, as it wouldn't make sense to=20
bring in a new planner unfamiliar with the details of the=20
company at this late stage. There was also mention of=20
initiation of discussions with Alphatec customers who have=20
expressed interest in investing in the company.


BANGKOK MILK PRODUCTS: Thai Dairy demands payment
-------------------------------------------------
The Bangkok Post reports Thai Dairy Industry Co, the=20
producer of Mali brand milk, has told Bangkok Milk Products=20
to pay a 282-million-baht debt or face legal action. Its=20
move follows Bangkok Milk Products' decision on Monday last=20
week to file a civil action against Thai Dairy Industry,=20
accusing the Mali producer of suspending its distribution=20
contract for sweetened condensed milk without giving=20
advance notice.

Anusorn Supmanoo, managing director of Bangkok Milk=20
Products, asked the court to award 1.374 billion baht in=20
damages. However, Thai Dairy Industry said the suspension=20
would remain until the money was paid. Managing director=20
Narong Luesakul said the money had been owed since October=20
7.=20

Thai Dairy Industry had asked in vain for the money for=20
three weeks before suspending the contract. Bangkok Milk=20
Products owed another 290 million baht to the manufacturer=20
but the debt was not yet overdue, Mr Narong said.

Mr Watchara said Mr Anusorn was willing to pay all the=20
debt. "In our 33 years' experience with Thai Dairy=20
Industry, we haven't paid with a single bouncing cheque."


BIJOUX: Faces possible delisting on independent directors
---------------------------------------------------------
According to the procedures when a listed company fails to=20
appoint independent directors or establish an audit=20
committee, the SET had posted an "SP" (Suspension) sign on=20
Bijoux Holdings Public Company Limited effective from 15=20
September 1998 onward as the company had not been able to=20
appoint independent directors.

BIJOUX still has not been able to appoint the independent=20
director. Therefore, the Exchange must publicly announce=20
the possible delisting of the firm in line with the Clause=20
30 (3) of the SET's Notification Regarding the Rules,=20
Conditions and Procedures Governing the Listing and=20
Delisting of Securities. Finally, if after three months or=20
by 15 March 1999, the company still has not appointed the=20
independent director, the SET will delist the company's=20
securities. However, the SET announced that Bijoux has=20
faced possible delisting due to other causes.


COMPASS EAST INDUSTRY: Results announcement
-------------------------------------------
Compass East Industry reports reviewed quarterly financial=20
statements as a net loss of Bt18.4 million for the period=20
ending October 31, 1998. This compares to a loss of Bt14.6=20
million for the corresponding 1997 period.


TOTAL ACCESS: TOT board to meet on TAC debts Tuesday
----------------------------------------------------
The Nation reports the Telephone Organisation of Thailand's=20
board of directors will Tuesday decide on how to deal with=20
Total Access Communication's accumulated debts, owed to the=20
state agency for using its interconnection facilities.
The problem is complicated as the money is supposed to be=20
transferred from TAC's licenser the Communications=20
Authority of Thailand. But the CAT has yet to be paid by=20
the company.

The firm suspended dividend payments last year, citing the=20
economic crisis as the main cause. TAC is exposed to huge=20
foreign currency-dominated debts.

Sawait Santanond, vice president of CAT, said TAC owes CAT=20
about Bt700 million as shared revenue. However, he said,=20
there are solutions to solve the problem but formal=20
negotiations have yet to take place. He said TAC is to=20
transfer its assets, worth Bt16 billion, to CAT. This=20
amount is subject to a 10 per cent tax that CAT is to pay=20
the government.

TOT is seeking legal advice from Coudert Brothers, and=20
preparing other legal procedures, according to the=20
statement.

The statement revealed that TAC does have the capability to=20
pay the debts, judging from the growing number of its=20
cellular subscribers.


S U B S C R I P T I O N   I N F O R M A T I O N=20

Troubled Company Reporter -- Asia Pacific is a daily=20
newsletter co-published by Bankruptcy Creditors' Service,=20
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,=20
DC USA.  Debra Brennan and Lexy Mueller, Editors.

Copyright 1998.  All rights reserved.  ISSN: 1520-9482. =20

This material is copyrighted and any commercial use,=20
resale or publication in any form (including e-mail=20
forwarding, electronic re-mailing and photocopying) is=20
strictly prohibited without prior written permission of=20
the publishers.  Information contained herein is obtained=20
from sources believed to be reliable, but is not=20
guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6=20
months delivered via e-mail. Additional e-mail=20
subscriptions for members of the same firm for the term of=20
the initial subscription or balance thereof are $25 each.=20
For subscription information, contact Christopher Beard at=20
301/951-6400.

            * * * End of Transmission * * *