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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      

      Monday, December 21, 1998, Vol. 1, No. 211

                    Headlines


* C H I N A   &   H O N G   K O N G *

ASSOCIATED ADVERTISERS, LIMITED: Winding-up petition
CA PACIFIC: Judge orders CA shares returned to clients
CAPITAL ASIA: Results announcement
DENWAY INVESTMENT: Announces proposed rights issue
DICKSON CONCEPTS: Results announcement

EMPEROR INTERNATIONAL: Results announcement
EVERWEAL TRADING LIMITED: Winding-up order
GAINZONE DEVELOPMENT LIMITED: Winding-up petition
HONG KONG DAILY NEWS: Results announcement
INTERFORM CERAMICS: Interim loss leaps to $421m

JEANNETTE'S FLORISTS LIMITED: Winding-up petition
MAY ZURE COMPANY LIMITED: Winding-up petition
OCEANAME LIMITED: Winding-up petition
REVELL ENGINEERING LIMITED: Winding-up order
RICHFIRM ELECTRIC: Notice to creditors to prove debts

TIANJIN INTERNATIONAL: Tianjin helps repay samurai bonds
TOP PROFIT MANAGEMENT LIMITED: Winding-up petition
UNISTRONG INTERNATIONAL LIMITED: Winding-up petition
WHIMSY ENTERTAINMENT: Brilliance weighs asset injection


* I N D O N E S I A *

MULIALAND: Mulialand may face bankruptcy hearing


* J A P A N *

HASEKO CORP: Creditor banks to waive 390 bil. yen
NKK: Announces further restructuring
NISSAN MOTOR: Denies DaimlerChrysler rumour
SAKURA BANK: Toyota refuses aid to bank


* K O R E A *

CHO HUNG BANK: To join forces with two ailing banks
DAEWOO ELECTRONICS: 'Big deals' adrift amid opposition
HYUNDAI ELECTRONICS: 'Big deals' adrift amid opposition
HYUNDAI INTERNATIONAL: To join forces with two ailing banks
KANGWON BANK: To join forces with two ailing banks

KOREA FIRST BANK: HSBC eyes one of two ailing Korean giants
LG SEMICON: 'Big deals' adrift amid opposition
SAMSUNG MOTORS: 'Big deals' adrift amid opposition
SEOULBANK: HSBC eyes one of two ailing Korean giants


* M A L A Y S I A *

AUSTRAL AMALGAMATED BHD: Scheme of arrangement
BRIGHT RIMS MANUFACTURING SDN BHD: Winding-up petition
DAYOCHI (M) SDN BHD: Winding-up petition
GRAND CONTOURS (M) SDN BHD: Winding-up petition
HUA TA ENTERPRISE (M) SDN BHD: Winding-up petition

RHB CAPITAL BHD: Results - 30/6/98
SIAN KIAT BROTHERS (M) SDN BHD: Voluntary winding-up
UNION PAPER HOLDINGS BHD: Results - 31/8/98
VACPAK APPAREL SDN BHD: Winding-up petition


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

VITARICH: Creditor banks OK PhP3-B debt restructuring


* T H A I L A N D *

SAHAVIRIYA OA: Epson Singapore to take stake
THAI MODERN PLASTIC: Extension of the rehabilitation plan


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

ASSOCIATED ADVERTISERS, LIMITED: Winding-up petition
----------------------------------------------------
A petition for the winding up of Associated Advertisers,
Limited was presented to the High Court on Nov 23 by
Chinachem Entertainment Limited whose registered office is
situate at Golden Plaza, 77 Mody Road, Tsimshatsui East,
Kowloon, Hong Kong, and the said petition is directed to
be heard before the court at 9:30 a.m. on Jan 13, 1999, and
any creditor or contributory of the said company desirous
to support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by the Solicitors for the
Petitioner, Ford, Kwan & Company, Suites 1505-1508,
Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East,
Kowloon, on payment of the regulated charges for the same.


CA PACIFIC: Judge orders CA shares returned to clients
------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, the court yesterday ordered that shares be
returned to former CA Pacific clients who the court decided
had a proprietary interest as rightful owners of their
shares. However the judge conceded that the process of
carving up the shares may pose extremely difficult
administrative problems.

According to the South China Morning Post, there was a
shortfall of $500 million in shares when CA Paciic
Securities and its margin financing arm collapsed in
January. Clients were owed $1.4 billion in shares, but it
had only $900 million in shares on hand.

Liquidators now face the prospect of analysing 11,000
clients' accounts. The judge reckoned that the process may
be costly, time-consuming and could lead to a potential
"unjust result".

One of the difficulties that liquidators face would be
consideration of the position of margin clients.

Further application may have to be made to the judge on the
matter.

Those clients with a proprietary claim were jubilant in
hearing the decision. The other class of investors were
those who would best benefit if the shares were sold and
equally distributed. The judge rejected claims by counsel
for this class that the securities held by CA Pacific
were held as part of its general assets. She found no
change had been effected by trading through the Central
Clearing and Settlement System (CCASS). It had been argued
that under CCASS rules, the broker is not regarded as an
agent, but is treated as the principal in its trades. The
judge stated that when CA Pacific Securities executed
clients' orders through CCASS, it was acting as an agent,
thus when such securities were acquired, the law would
regard the client as having the beneficial interest in
them.

While recognising that some other form of arrangement might
be fairer and less expensive, she said that she should not
at this stage attempt any formulation of a proposal before
hearing from the liquidators and possibly opposing camps of
individual beneficiaries.

According to the Hong Kong Standard, any appeal could take
up to six months to conclude. Whether there will be an
appeal is a matter for the representative respondents in
consultation with their legal advisers.


CAPITAL ASIA: Results announcement
----------------------------------
Capital Asia Limited announced half-year results for the
period ending September 30, 1998 as a loss of HK$8.7
million on turnover of HK$123 million. This compares with a
profit of HK$14.5 million on turnover of HK$415 million for
the corresponding 1997 period.


DENWAY INVESTMENT: Announces proposed rights issue
--------------------------------------------------
Denway Investment Limited proposes to raise approximately
HK$530 million by way of a rights issue of not less than
1,140,541,350 Rights Shares at HK$0.465 per Rights Share.
The Company will provisionally allot five Rights Shares for
every six Shares held by the Qualifying Shareholders, whose
registered addresses are in Hong Kong as at the Record
Date. The Rights Issue is not available to Shareholders
other than the Qualifying Shareholders.

The Directors believe that the Rights Issue is in the
interests of the Company and the Shareholders taken as a
whole as it would significantly improve the financial
position of the Company and would allow the Company to
repay the RMB551 million (approximately HK$515 million)
loan and the interest accrued thereon due to Guangzhou
Automobile, and that the Rights Issue is vital to the
continued operation and the future development of the
Group's automobile manufacturing business.

China Lounge and Hero China have agreed that, after
completion of the Rights Issue, Newman, the controlling
shareholder of the Company, which will then be owned as to
approximately 72.18 per cent and 27.82 per cent by China
Lounge and Hero China respectively upon completion of the
Rights Issue, will be dissolved.


DICKSON CONCEPTS: Results announcement
--------------------------------------
Dickson Concepts (International) Limited announced half-
year results for the period ending September 30, 1998 as a
loss of HK$290 million on turnover of HK$2.45 billion. This
compares with a profit of HK$196 million on turnover of
HK$2.57 billion for the corresponding 1997 period.


EMPEROR INTERNATIONAL: Results announcement
-------------------------------------------
Emperor International Holdings Limited announced half-year
results for the period ending September 30, 1998 as a loss
of HK$95.9 million on turnover of HK$338 million. This
compares with a profit of HK$67.6 million on turnover of
HK$799 million for the corresponding 1997 period.


EVERWEAL TRADING LIMITED: Winding-up order
------------------------------------------
A notice dated December 18 appeared in the Hong Kong
Standard for a winding-up order for Everweal Trading
Limited. The Registered Office is 60-62 Aberdeen Main Road,
Ground Floor, Hong Kong. The date of the order is December
9 and the petition was presented October 26, 1998.


GAINZONE DEVELOPMENT LIMITED: Winding-up petition
-------------------------------------------------
A petition for the winding up of Gainzone Development
Limited was presented to the High Court on Dec 15 by Yan
Leung Sum of Room 214, Lok Cheung House, Tsz Lok Estate,
Tsa Wan Shan, Kowloon, and the said petition is directed to
be heard before the court at 9:30 a.m. on Jan 27, 1999, and
any creditor or contributory of the said company desirous
to support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


HONG KONG DAILY NEWS: Results announcement
------------------------------------------
Hong Kong Daily News Holdings Limited announced half-year
results for the period ending September 30, 1998 as a loss
of HK$37.2 million on turnover of HK$75.6 million. This
compares with a loss of HK$32.9 million on turnover of
HK$226 million for the corresponding 1997 period.

Discontinued operations refer to the wholesaling and
retailing of furniture and audio-visual products businesses
which were disposed on 30th March, 1998 respectively to
Double Glory Developments Limited, a wholly-owned
subsidiary of Emperor International Holdings Limited , and
Eternal Best Limited, a company controlled by Mr. Yeung Sau
Shing. Both Emperor International and Mr. Albert Yeung are
deemed to be substantial shareholders of the Company.

On 22nd August 1997, the Group also disposed of Sea Cosmos
Investment Limited, which is engaged in the magazine kiosks
business, to Mr. Lun Siu Ming, a former director of the
Company.


INTERFORM CERAMICS: Interim loss leaps to $421m
-----------------------------------------------
According to the South China Morning Post, troubled
Interform Ceramics, which last month unveiled a $1.7
billion rescue deal involving mainland-backed China
Wealth Group, plunged heavily into the red in the September
half, suffering an attributable loss of $421.5 million
compared to a previous profit of $41.5 million.

The figure takes aggregate attributable losses for the 18
months to September to more than $882 million after the
company revealed in August it lost $460.6 million in the
year to March and was in talks to freeze debt repayments.

Turnover was down 60 per cent to $166.5 million, losses
from continuing operations were $68.5 million and the share
of losses from associates was $41.8 million.

No dividend is being paid, compared to a one cent payout in
the previous corresponding period.

In the latest interim period, the company was hit by
exceptional losses of $311.3 million. These comprised
$269.6 million in provisions for bad and doubtful debts and
$41.7 million in provisions for the falling value of
interests in associates. Its normal operations also
suffered as management concentrated on restructuring talks
with creditors who are owed $807 million. Earlier this
month, the company said it was extending the date for
completion of the main part of the rescue deal to December
21 or later.

Interform chairman Matthew Ngan said yesterday he believed
China Wealth would help the company to restructure debt as
well as to provide opportunities in the ceramics industry.

The Hong Kong Standard also reported on the figures
released by the company and said that it was in discussions
with certain strategic investors on a potential equity
injection.


JEANNETTE'S FLORISTS LIMITED: Winding-up petition
-------------------------------------------------
A petition for the winding up of Jeannette's Florists
Limited was presented to the High Court on Dec 1 by Pauline
Wong of 1C, Park Garden, No 6 Tai Hang Drive, Hong Kong,
and the said petition is directed to be heard before the
court at 9:30 a.m. on Jan 13, 1999, and any creditor or
contributory of the said  company desirous to support or
oppose the making of an order on the said petition may
appear at the time of hearing by himself or his counsel for
that purpose, and a copy of the petition will be furnished
to any creditor or contributory of the said company
requiring the same by the Solicitors for the Petitioner,
Hui & Lam, Rooms 2001-4, 20th Floor, Hang Seng Building, 77
Des Voeux Road Central, Hong Kong, on payment of the
regulated charges for the same.


MAY ZURE COMPANY LIMITED: Winding-up petition
---------------------------------------------
A petition for the winding up of May Zure Company Limited
was presented to the High Court on Dec 9 by Fung Ka Fai of
Flat C, 9th Floor, 126 Austin Road, Tsimshatsui, Kowloon,
and the said petition is directed to be heard before the
court at 9:30 a.m. on Jan 20, 1999, and any creditor or
contributory of the said company desirous to support or
oppose the making of an order on the said petition may
appear at the time of hearing by himself or his counsel for
that purpose, and a copy of the petition will be furnished
to any creditor or contributory of the said company
requiring the same by Tam Lee Po Lin, Nina for Director of
Legal Aid, 27th Floor, Queensway Government Offices, 66
Queensway, Hong Kong, on payment of the regulated charges
for the same.


OCEANAME LIMITED: Winding-up petition
-------------------------------------
A petition for the winding up of Oceaname Limited was
presented to the High Court on Dec 11 by Tang Wing Cheung
of Room 10, 2nd Floor, Block J, Chun Man Court, Homantin,
Kowloon, and the said petition is directed to be heard
before the court at 9:30 a.m. on Jan 20, 1999, and any
creditor or contributory of the said company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


REVELL ENGINEERING LIMITED: Winding-up order
--------------------------------------------
A notice for a winding-up order for Revell Engineering
Limited appeared in the Hong Kong Standard on December 18.
The Registered Office is Room 205, 2nd Floor, Kaiser
Centre, 18 Centre Street, Hong Kong. The date of the order
is December 9 and the petition was presented October 30.


RICHFIRM ELECTRIC: Notice to creditors to prove debts
-----------------------------------------------------
The creditors of Richfirm Electric Limited, which is being
voluntarily wound up, are required on or before Jan 15,
1999 to send in their names, addresses and particulars of
their debts or claims to the Liquidators of the said
company, and if so required by notice in writing from the
liquidators, are personally or by their solicitors to come
in and prove their debts or claims at such time and place
specified in such notice, or in default thereof, they will
be deemed to waive all of such debts of claims and the
Liquidators will be entitled seven days after the above
date to distribute the funds available or any part thereof
to the Members of the above Company.


TIANJIN INTERNATIONAL: Tianjin helps repay samurai bonds
--------------------------------------------------------
According to the South China Morning Post, the Tianjin
municipal government has helped its investment arm, Tianjin
International Trust and Investment Corp (Titic), repay its
10-year, 10 billion yen samurai bonds due yesterday.

Sources said the government had made advances to Titic to
repay about half of the debt after Titic succeeded in
gathering the other half, partly through calls on debtors.
S&P said it would leave Titic's BB-minus rating unchanged.
The agency still keeps Titic on credit watch with negative
implications.

A source close to Titic said the firm would continue
efforts to chase loans and generate internal resources to
repay the municipal government and prepare for the next
known due payment of a five-year, 13 billion yen samurai
bond in May. The firm had paid off most of its short-term
debt, which was mostly raised on the mainland, in the past
six months.


TOP PROFIT MANAGEMENT LIMITED: Winding-up petition
--------------------------------------------------
A petition for the winding up of Top Profit Management
Limited was presented to the High Court on Dec 10 by Cheng
Yan Chi, Gary of Flat E, 2nd Floor, Man Ying Building, 23
Man Yuen Street, Jordan, Kowloon, and the said petition is
directed to be heard before the court at 9:30 a.m. on Jan
20, and any creditor or contributory of the said company
desirous to support or oppose the making of an order on the
said petition may appear at the time of hearing by himself
or his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


UNISTRONG INTERNATIONAL LIMITED: Winding-up petition
----------------------------------------------------
A petition for the winding up of Unistrong International
Limited was presented to the High Court on Nov 25 by Lau
Fong of Room 721, Wu Tsui House, Wu King Estate, Tuen Mun,
New Territories, and the said petition is directed to be
heard before the court at 9:30 a.m. on Dec 30, and any
creditor or contributory of the said company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


WHIMSY ENTERTAINMENT: Brilliance weighs asset injection
-------------------------------------------------------
According to the South China Morning Post, mainland-backed
New York-listed Brilliance China Automotive Holdings is
examining the possibility of injecting assets to turn
around loss-making Whimsy Entertainment.

Brilliance China's chairman Yang Rong said the company
would consider acting in the middle of next year to ensure
Whimsy return to profit in the financial year to March 2000
but he did not elaborate on the methods to be considered.
He said Brilliance China did not have immediate plans to
change the operations of 33.6 per cent-owned Whimsy.
Neither did the company have plans to increase its
shareholding or to turn its shareholder loans into an
equity stake.

Brilliance China provided a shareholders' loan of $15
million to Whimsy to pay rent and other bills after
becoming the largest shareholder last month.

Whimsy has 18 games centres in Hong Kong and seven in
mainland China. Mr Yang said the company was looking to
increase the number of centres in both, with investment in
the form of shareholders' loans. He said Whimsy is now
entering a growth period, having past its most difficult
cycle. However, the investment would only be launched after
the regional financial turmoil was over.


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

MULIALAND: Mulialand may face bankruptcy hearing
------------------------------------------------
According to the Hong Kong Standard, Mulialand, a major
Indonesian property developer, said it may be forced into
the country's fledging bankruptcy court because it cannot
meet demands for repayment of US$200 million in debt.

The company was in close relations with former president
Suharto, who opened its five-star Mulia Hotel in Jakarta
just months before his step-down in May. It also owns a
shopping mall, along with residential and office buildings
in Jakarta.

The collapse of the property market in the midst of
Indonesia's recession and record interest rates pushed
Mulialand into default on Oct 22, when it missed interest
payments on two US$100 million floating-rate notes and
entered talks with its noteholders. On Oct 27, the company
told the Jakarta Stock Exchange in a written reply to a
query that the default was part of a standstill but did not
give details.

After the standstill, holders of more than a quarter of the
company's bonds triggered a clause in the bond agreement
that requires full repayment of both the principal and
accrued interest on all of the bonds, according to a Nov 10
notice from Euroclear, a Brussels-based international
clearing agent.

Some of the bondholders are now considering taking the
company to the country's new bankruptcy court. However the
way several cases have been handled cast doubt upon the
court's credibility and effectiveness.

The first serious test case in the court, brought by
American Express Bank against a local cocoa butter maker,
was thrown out on a technicality.


=========
J A P A N  
=========

HASEKO CORP: Creditor banks to waive 390 bil. yen
-------------------------------------------------
Kyodo News reports Haseko Corp.'s three main creditor banks
on Friday agreed to a restructuring plan aimed at waiving
some 390 billion yen owed by the condominium builder, a
source familiar with the deal said. The three banks --
Daiwa Bank, the Industrial Bank of Japan (IBJ) and Mitsui
Trust and Banking Co. -- will likely waive a total of 160
billion yen of their claims on Haseko, with Daiwa and
Mitsui waiving 60 billion yen each, and IBJ 40 billion yen,
the source said.

The three banks will ask Haseko's other creditor banks to
waive their claims on loans made to the financially
troubled condominium developer in the hope that these
losses will be written off in the current business year,
ending March 31, 1999, the source said.

The Nihon Keizai Shimbun reported in its Friday morning
edition that the restructuring plan calls on each of its 38
creditor banks to relinquish 48% of their outstanding
claims on its uncollateralized debt, which exceeds 810
billion yen.

At the end of September, Haseko had outstanding loans of
53.8 billion yen from Daiwa, 39.9 billion yen from Mitsui
and 34.5 billion yen from the IBJ.

Haseko will focus on mainstay condominium construction and
sales, the source said, adding that the company will cut
1,000 jobs by March 2000 on top of slashing 300 jobs by the
end of next March under the reorganization plan unveiled in
May.

Haseko has been saddled with a total of 1.1 trillion yen in
interest-bearing liabilities, including those owed by
affiliates, in the wake of failed real estate investments
in the asset-inflated bubble economy of the late 1980s.

For the business year ended March 31, Haseko posted a net
loss of 192.7 billion yen as a result of writing off
nonperforming assets following the asset-retrenchment
program announced in October 1995.


NKK: Announces further restructuring
------------------------------------
The Financial Times reports NKK, the troubled Japanese
steel group, yesterday announced a further restructuring,
involving the reduction of its workforce by more than a
fifth and a Y25bn extraordinary charge next financial year
to cover the redundancy cost.

The company, the country's second biggest producer, blamed
fierce competition and a collapse in demand.

NKK warned the cost of cutting 3,300 jobs would contribute
to a net loss of Y109bn next year. It aimed to complete the
layoffs by March 2000.

For the year ending March 1999, the company had predicted
parent net losses of Y47bn on sales of Y1.050bn. In the six
months to September it posted a net loss of Y30bn on
turnover of Y456bn. The group, which owns 70 per cent of
National Steel of the US, is struggling to deal with the
collapse of Toa Steel, a subsidiary in the process of
liquidation.


NISSAN MOTOR: Denies DaimlerChrysler rumour
-------------------------------------------
Bloomberg reports Nissan motor president Yoshikazu Hanawa
denied a German magazine's report that DaimlerChrysler AG
is studying buying a stake in the Japanese automaker.
Nissan said is planning to boost overseas output 3 percent
next year and may close a factory in Japan in a bid to
revive profit.


SAKURA BANK: Toyota refuses aid to bank
---------------------------------------
According to the South China Morning Post, Toyota Motor's
president Mr Kiroshi Okuda said Toyota will not give
financial help to its ally Sakura Bank, which turned to
Toyota for support earlier this year hoping it would lend
money to prop up the bank's capital as it writes off bad
loans.

Last month the bank said it would raise 350 billion yen in
a share placement with other business allies, although
Toyota was notably absent from the deal. The bank said then
it was still expecting a capital injection from
Toyota in the future. Mr Okuda said Toyota will act in a
way which is most economically rational.

The Financial Times says the public refusal is one of the
first by a large industrial company to support an ailing
banking ally in Japan and is another signal of fundamental
changes under way in Japan's traditional corporate culture.

Toyota's move is a blow for Sakura, which had expected that
all its large shareholders and the main members of the
Mitsui keiretsu would contribute to its capital raising.

Sakura yesterday siad it had already persuaded 21 other
large shareholders and keiretsu members to purchase an
additional Y345bn of its stock.


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

CHO HUNG BANK: To join forces with two ailing banks
---------------------------------------------------
According to the Hong Kong Standard, debt-ridden Korean
banks Cho Hung Bank, Kangwon Bank and Hyundai International
Merchant Bank yesterday said they would join to form a bank
boasting US$51 billion in assets and an expected US$2
billion in state capitalisation by next March.

Officials have indicated they will support such a merger
and Cho Hung's acting president Lee Kang Ryung said after
the deal was signed that it is almost certain that the
government will extend support within this year. He said
the amount of capital to be written off in return for
receiving government funds has yet to be decided.

The new entity expects to receive 2.5 trillion won in share
capital from the government while its assets will total 62
trillion won, making it a major player. The banks said it
was expected to have annual earnings of over 100 billion
won and would lure foreign capital by issuing overseas
depository receipts to help repay Seoul for its cash
injection.

Mr Lee said the giant Hyundai Group, a major shareholder of
Kangwon and Hyundai International, was due to make a
capital injection of 100 billion won into the two banks to
make their net worth positive, but he said the shareholding
of Hyundai, a major conglomerate also undergoing
restructuring, had not yet been decided yet.


DAEWOO ELECTRONICS: 'Big deals' adrift amid opposition
------------------------------------------------------
The Korea Herald reports the proposed swap of Samsung
Motors and Daewoo Electronics and merger of Hyundai
Electronics and LG Semicon are floundering in the face of
sharp clash of interests among the concerned firms and
growing resistance from their employees, analysts said
yesterday. Prospects for the two "big deals," touted as the
grand finale of the government's year-long restructuring
drive, have lately grown even more uncertain, as the
concerned firms are widening differences over swap and
merger terms.

In the meantime, sales and operating losses at the "big-
deal" manufacturers are on the rise, threatening to produce
the opposite of what government reformers have in mind.

Amid the deepening deadlock, the government will today
embark on an effort to mediate in the troubled Samsung-
Daewoo swap deal. Choe Hong-geon, vice minister of
Commerce, Industry and Energy, is scheduled to meet today
with Lee Dae-won, president of Samsung Motors, and Kim Tae-
gou, president of Daewoo Motor, in a bid to help iron out
key disputes. The two firms are said to be particularly
split over whether Daewoo will continue to produce
Samsung's "SM 5" models even after the takeover.


HYUNDAI ELECTRONICS: 'Big deals' adrift amid opposition
-------------------------------------------------------
The Korea Herald reports the proposed swap of Samsung
Motors and Daewoo Electronics and merger of Hyundai
Electronics and LG Semicon are floundering in the face of
sharp clash of interests among the concerned firms and
growing resistance from their employees, analysts said
yesterday. Prospects for the two "big deals," touted as the
grand finale of the government's year-long restructuring
drive, have lately grown even more uncertain, as the
concerned firms are widening differences over swap and
merger terms.

In the meantime, sales and operating losses at the "big-
deal" manufacturers are on the rise, threatening to produce
the opposite of what government reformers have in mind.

In a relevant development, negotiations on semiconductor
merger still remained stalemated, prompting a growing
number of watchers to speculate that the deal is close to
collapse.

With the deadline for the settlement of the management-
right dispute less than a week away, U.S. consulting agency
Arthur D. Little has yet to receive management data from
LG, due to wide differences over the fairness of the
evaluation criteria. The analysts said that ADL's
announcement of the winner of the controlling stake in the
merged chip entity on Dec. 25 may result in further
worsening of the dispute.


HYUNDAI INTERNATIONAL: To join forces with two ailing banks
-----------------------------------------------------------
According to the Hong Kong Standard, debt-ridden Korean
banks Cho Hung Bank, Kangwon Bank and Hyundai International
Merchant Bank yesterday said they would join to form a bank
boasting US$51 billion in assets and an expected US$2
billion in state capitalisation by next March.

Officials have indicated they will support such a merger
and Cho Hung's acting president Lee Kang Ryung said after
the deal was signed that it is almost certain that the
government will extend support within this year. He said
the amount of capital to be written off in return for
receiving government funds has yet to be decided.

The new entity expects to receive 2.5 trillion won in share
capital from the government while its assets will total 62
trillion won, making it a major player. The banks said it
was expected to have annual earnings of over 100 billion
won and would lure foreign capital by issuing overseas
depository receipts to help repay Seoul for its cash
injection.

Mr Lee said the giant Hyundai Group, a major shareholder of
Kangwon and Hyundai International, was due to make a
capital injection of 100 billion won into the two banks to
make their net worth positive, but he said the shareholding
of Hyundai, a major conglomerate also undergoing
restructuring, had not yet been decided yet.


KANGWON BANK: To join forces with two ailing banks
--------------------------------------------------
According to the Hong Kong Standard, debt-ridden Korean
banks Cho Hung Bank, Kangwon Bank and Hyundai International
Merchant Bank yesterday said they would join to form a bank
boasting US$51 billion in assets and an expected US$2
billion in state capitalisation by next March.

Officials have indicated they will support such a merger
and Cho Hung's acting president Lee Kang Ryung said after
the deal was signed that it is almost certain that the
government will extend support within this year. He said
the amount of capital to be written off in return for
receiving government funds has yet to be decided.

The new entity expects to receive 2.5 trillion won in share
capital from the government while its assets will total 62
trillion won, making it a major player. The banks said it
was expected to have annual earnings of over 100 billion
won and would lure foreign capital by issuing overseas
depository receipts to help repay Seoul for its cash
injection.

Mr Lee said the giant Hyundai Group, a major shareholder of
Kangwon and Hyundai International, was due to make a
capital injection of 100 billion won into the two banks to
make their net worth positive, but he said the shareholding
of Hyundai, a major conglomerate also undergoing
restructuring, had not yet been decided yet.


KOREA FIRST BANK: HSBC eyes one of two ailing Korean giants
-----------------------------------------------------------
According to the South China Morning Post, HSBC is
conducting talks with the South Korean Government on
acquiring either Korea First Bank (KFB) or Seoulbank, a
spokesman for KFB said yesterday. The spokesman said US
investment banker Morgan Stanley was lead manager for the
sale of both KFB and Seoulbank.

Another source in Seoul said HSBC had conducted due
diligence last week on both KFB and Seoulbank with a view
to a possible takeover of one of the two. He said the bank
was the most likely potential buyer of one of the two banks
and it will be known next week which bank it will select.

Sources said on Wednesday the government might buy back
shares held by minority investors in KFB and Seoulbank to
remove big obstacles in the sale of the two institutions.
The source said a memorandum of understanding on the sale
of either Seoulbank or Korea First was likely to be signed
soon.

HSBC declined to comment.


LG SEMICON: 'Big deals' adrift amid opposition
----------------------------------------------
The Korea Herald reports the proposed swap of Samsung
Motors and Daewoo Electronics and merger of Hyundai
Electronics and LG Semicon are floundering in the face of
sharp clash of interests among the concerned firms and
growing resistance from their employees, analysts said
yesterday. Prospects for the two "big deals," touted as the
grand finale of the government's year-long restructuring
drive, have lately grown even more uncertain, as the
concerned firms are widening differences over swap and
merger terms.

In the meantime, sales and operating losses at the "big-
deal" manufacturers are on the rise, threatening to produce
the opposite of what government reformers have in mind.

In a relevant development, negotiations on semiconductor
merger still remained stalemated, prompting a growing
number of watchers to speculate that the deal is close to
collapse.

With the deadline for the settlement of the management-
right dispute less than a week away, U.S. consulting agency
Arthur D. Little has yet to receive management data from
LG, due to wide differences over the fairness of the
evaluation criteria. The analysts said that ADL's
announcement of the winner of the controlling stake in the
merged chip entity on Dec. 25 may result in further
worsening of the dispute.


SAMSUNG MOTORS: 'Big deals' adrift amid opposition
--------------------------------------------------
The Korea Herald reports the proposed swap of Samsung
Motors and Daewoo Electronics and merger of Hyundai
Electronics and LG Semicon are floundering in the face of
sharp clash of interests among the concerned firms and
growing resistance from their employees, analysts said
yesterday. Prospects for the two "big deals," touted as the
grand finale of the government's year-long restructuring
drive, have lately grown even more uncertain, as the
concerned firms are widening differences over swap and
merger terms.

In the meantime, sales and operating losses at the "big-
deal" manufacturers are on the rise, threatening to produce
the opposite of what government reformers have in mind.

Amid the deepening deadlock, the government will today
embark on an effort to mediate in the troubled Samsung-
Daewoo swap deal. Choe Hong-geon, vice minister of
Commerce, Industry and Energy, is scheduled to meet today
with Lee Dae-won, president of Samsung Motors, and Kim Tae-
gou, president of Daewoo Motor, in a bid to help iron out
key disputes. The two firms are said to be particularly
split over whether Daewoo will continue to produce
Samsung's "SM 5" models even after the takeover.


SEOULBANK: HSBC eyes one of two ailing Korean giants
----------------------------------------------------
According to the South China Morning Post, HSBC is
conducting talks with the South Korean Government on
acquiring either Korea First Bank (KFB) or Seoulbank, a
spokesman for KFB said yesterday. The spokesman said US
investment banker Morgan Stanley was lead manager for the
sale of both KFB and Seoulbank.

Another source in Seoul said HSBC had conducted due
diligence last week on both KFB and Seoulbank with a view
to a possible takeover of one of the two. He said the bank
was the most likely potential buyer of one of the two banks
and it will be known next week which bank it will select.

Sources said on Wednesday the government might buy back
shares held by minority investors in KFB and Seoulbank to
remove big obstacles in the sale of the two institutions.
The source said a memorandum of understanding on the sale
of either Seoulbank or Korea First was likely to be signed
soon.

HSBC declined to comment.


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

AUSTRAL AMALGAMATED BHD: Scheme of arrangement
----------------------------------------------
Austral Amalgamated Bhd (listed on the KLSE) group was
granted a restraining and stay order to have a scheme of
arrangement and reconstruction.

The scheme would involve reducing the par value of the
ordinary shares to a quarter. Some RM587mil of debt is also
proposed to be converted into shares and certain level of
debt waiver.


BRIGHT RIMS MANUFACTURING SDN BHD: Winding-up petition
------------------------------------------------------
Brady's (Malaya) Sdn Bhd on 10/7/98 petitioned for the  
winding-up of Bright Rims Manufacturing Sdn Bhd. The
petition is directed to be heard on 12/1/99.


DAYOCHI (M) SDN BHD: Winding-up petition
----------------------------------------
Evershine Stainless Steel Sdn Bhd on 24/9/98 petitioned for
the winding-up of Dayochi (M) Sdn Bhd. The petition is
directed to be heard on 29/1/99.


GRAND CONTOURS (M) SDN BHD: Winding-up petition
-----------------------------------------------
United Merchant Finance Bhd on 1/10/98 petitioned for the
winding-up of Grand Contours (M) Sdn Bhd. The petition is
directed to be heard on 11/1/99.


HUA TA ENTERPRISE (M) SDN BHD: Winding-up petition
--------------------------------------------------
Hongkong Bank Malaysia Bhd on 8/12/98 petitioned for the
winding-up of Hua Ta Enterprise (M) Sdn Bhd.


RHB CAPITAL BHD: Results - 30/6/98
----------------------------------
RHB Capital Bhd (listed on the KLSE) reported a post-tax
loss of RM638.245mil for the 18months ended 30/6/98,
compared to a post-tax profit of RM664.715mil in the
previous year. EPS fell 182% from 39.32sen to a loss per
share of 32.12sen.


SIAN KIAT BROTHERS (M) SDN BHD: Voluntary winding-up
----------------------------------------------------
The members of Sian Kiat Brothers (M) Sdn Bhd on 14/12/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 19/1/99.


UNION PAPER HOLDINGS BHD: Results - 31/8/98
-------------------------------------------
Union Paper Holdings Bhd (listed on the KLSE) reported a
post-tax loss of RM10.037mil for the year ended 31/8/98,
compared to a post-tax loss of RM4.346mil previously. Loss
per share rose 130.9% from 25.03sen to 57.80sen during the
same period.


VACPAK APPAREL SDN BHD: Winding-up petition
-------------------------------------------
Asia Commercial Finance (M) Bhd on 28/10/98 petitioned for
the winding-up of Vacpak Apparel SDn Bhd. The petition is
directed to be heard on 31/3/99.


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

VITARICH: Creditor banks OK PhP3-B debt restructuring
-----------------------------------------------------
BusinessWorld reports poultry-based food producer Vitarich
Corp. finally signed its three-billion Philippine peso
(PhP) debt restructuring agreement with creditor banks that
would result in lower interest costs and improved cash
flow.

Vitarich corporate secretary Tadeo Hilado told the stock
exchange the restructuring pact was signed last Tuesday. It
involved Vitarich's omnibus credit line, and leasing and
domestic bills purchase facilities with several creditor
banks and financial institutions.

The company's creditors include Bank of the Philippine
Islands, Philippine National Bank, Philippine Commercial
International Bank (PCIBank), Metropolitan Bank and Trust
Co. (Metrobank), Far East Bank and Trust Co., Land Bank of
the Philippines, Solidbank Corp., Bank of Commerce, Rizal
Commercial Banking Corp., Philippine Banking Corp.,
Standard Chartered Bank and Union Bank of the Philippines.
PCIBank and Metrobank have the largest exposure worth
PhP500 million to PhP600 million.

The PhP3-billion short-term loan was used by the company as
working capital, for expansion projects and as a revolving
fund. A company source told BusinessWorld recently that the
latest proposal submitted by Vitarich to the banks involved
a PhP500-million revolving credit line and PhP1-billion
convertible notes and term loans.


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

SAHAVIRIYA OA: Epson Singapore to take stake
--------------------------------------------
The Nation reports Epson Singapore Co. has offered to
acquire a 10 percent stake in Sahaviriya OA Plc. after Acer
Corp. reached an agreement to take a majority stake in the
latter. Epson's offer will be submitted to Sahaviriya OA's
board of directors and creditor committee as a part of its
debt-restructuring plan for an approval.

Hideaki Takayama, vice-president of Epson (Thailand) Co.
Ltd., said if the letter of intent for the acquisition made
last week is approved, the acquisition deal is expected to
be completed for signing within 30-45 days.

"Epson Singapore's acquisition could help Sahaviriya OA to
rehabilitate faster the ailing business because Epson is a
strategic partner," said Takayama.

After Epson Singapore has acquired Sahaviriya OA's stake,
it will raise its support for Epson Thailand in both
marketing and financial backup to boost sales in the Thai
market.

Sahaviriya Group is undergoing a debt restructuring process
by seeking strategic partners to acquire stakes in its
companies.

Sahaviriya OA's major interests are retail chain IT
Superstore and joint venture interests with Epson, Compaq,
Hewlett-Packard and Acer.


TPI POLENE: Sets debt deadline for creditors
--------------------------------------------
The Nation reports creditors of TPI Polene Plc were
yesterday asked to decide by Jan 31 if they would accept
its US$1.5 billion debt restructuring plan, according to
creditor sources. Led by its chief executive officer
Prachai Leophairatana, TPIPL which had stopped repaying its
debts since August last year, presented the restructuring
plan to about 50 creditors at a meeting held at the TPI
headquarters in Bangkok.

According to the TPIPL debt restructuring model, the
principal repayment term would be extended to 10 years
starting from the year 2000. For unpaid interest, the
creditors would be given the right to swap the debts for
equity in TPIPL resulting in a combined equity
participation of 20 per cent.

With regard to the asset sale plan, TPIPL said it had
another investor vying to buy its cement factories in
addition to Cement of Mexico. Claiming a low buying price
proposed by Cement of Mexico, TPIPL had earlier refused to
sell to the Mexican company.

However, TPIPL executives said yesterday that the company
is open  to renegotiations with Cement of Mexico if a
higher price is proposed.

TPIPL said that under a worst case scenario, the company is
expected to generate sales revenue of US$1.2 billion a
year, excluding extraordinary gains from the possible sale
of its cement unit.

TPIPL, Thailand's third largest cement producer, is also
operating a linear density polyethylene plastic pellet
plant in a TPI Group integrated petrochemical complex in
Rayong.

Creditors of TPIPL's parent firm Thai Petrochemical
Industry Plc (TPI) postponed a vote on the TPI debt
restructuring plan scheduled for yesterday as some
important creditors like International Finance Corp thought
the plan favoured the debtor.


THAI MODERN PLASTIC: Extension of the rehabilitation plan
---------------------------------------------------------
Thai Modern Plastic Industry Plc. announces as South
Sathorn Planners Co., Ltd. has to submit the rehabilitation
plan to the Business Reorganization Office by December 15,
1998, we are now in the process of refining details of the
plan and waiting for confirmation from the potential
investor. Therefore, we had filed petition to extend the
submission date for 30 days to January 15, 1999 and the
court has already approved the extension.


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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