/raid1/www/Hosts/bankrupt/TCRAP_Public/981228.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Monday, December 28, 1998, Vol. 1, No. 215

                    Headlines


* C H I N A   &   H O N G   K O N G *

CITY CHIU CHOW HOLDINGS: To close down outlets
GUANGZHOU INTERNATIONAL: Firms take properties for debt
GERMAN KITCHEN (CHINA): Police alerted to $100m payments
LAI SUN DEVELOPMENT: Lai Sun eyes $3b asset sale
NEW CHINA HK: Claims mount against Tsui and New China group

SING TAO HOLDINGS: Slides into $13.79m interim loss


* I N D O N E S I A *

INDOFOOD: Seeks nod for new chief
LIPPO BANK: Shareholders approve rights issue


* J A P A N *

FUJITA CORP: Seeks debt forgiveness from banks
ISUZU MOTORS: Automaker to cut 4,000 jobs
LONG TERM CREDIT: Gov't to fix eligible borrowers by Jan 20
SEKSUKI HOUSE: Moody's cuts long-term debt rating


* K O R E A *

HANBO IRON & STEEL: Dongkuk Steel possible winner of bid
HYUNDAI ELECTRONICS: Hyundai to control joint chip company
KIA MOTORS: Ford Motor likely to acquire new Kia shares
LG SEMICON: Hyundai to control joint chip company
ROCKET ELECTRIC: Trade commission OKs purchase by Gillette


* M A L A Y S I A *

AMSTEEL CORP: Amsteel lines up $3b sale
CARLTON STAR HOTEL SDN BHD: Winding-up petition
GADEK CAPITAL BHD: Results - 30/9/98
INDERALOKA KIARA SDN BHD: Winding-up petition
KM MUSIC LINES SDN BHD: Winding-up petition

MBF NORTHERN SECURITIES: SC rejects plan to buy MBf unit
NEW WORLD SHOPPING MALL SDN BHD: Voluntary winding-up
SENG TECK HOOI ENTERPRISE SDN BHD: Voluntary winding-up
SITT TATT BHD: Results - 30/9/98
STERIPAK SDN BHD: Winding-up petition


* S I N G A P O R E *

DBS LAND: Shares pull back after deal denial
HOUR GLASS: In the red with $4.9m interim loss


* T H A I L A N D *

ALPHATEC: Charges against executives likely soon
AROMATICS THAILAND: Seeking new financing
BANGKOK BANK: Charges against executives likely soon
GENERAL FINANCE: Charges against executives likely soon
QUALITY CEMENT: Phatra Thanakit files petition

SIAM CEMENT: In talks to sell units' stakes to Toyota
SITCA INVESTMENT: Charges against executives likely soon
TRI PETCH: Mitsubishi lends B6bn to Tri Petch


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

CITY CHIU CHOW HOLDINGS: To close down outlets
----------------------------------------------
According to the Hong Kong Standard, restaurant and hotel
operator City Chiu Chow Holdings plans to close non-
profitable outlets following a 33 per cent increase in net
losses amounting to $18.39 million for the six months to
Sept. 30. The non-profitable outlets were not identified.

The firm reported a 300 per cent rise in operating losses
to $17.4 million during the interim. Loss per share
amounted to 9.5 cents, more than the 6.9 cents per share
reported in the same period last year. This is the second
interval year-on-year that City Chiu Chow has experienced
losses. Total turnover plunged 31 per cent to $184.4
million during the interim period. Besides reduced consumer
spending, the company has been hit by tenancy problems.


GUANGZHOU INTERNATIONAL: Firms take properties for debt
-------------------------------------------------------
According to the South China Morning Post, Guangzhou
International Trust and Investment Corp (Gzitic) appears
unable to resolve its financial woes as 2 H-share companies
-- Luoyang Glass and Guangzhou Shipyard -- rush to take its
properties as collateral for money placed with the firm.

Luoyang Glass financial controller said the board had
agreed to take Gzitic's properties in Hong Kong and Macau,
said to be worth about 200 million yuan as collateral for
its outstanding deposits of 145 million yuan in order to
play safe.

Guangzhou Shipyard secretary said Gzitic had offered to the
company properties in Macau worth about 600 million yuan as
collateral. He said Gzitic's future would depend on
Beijing's policy to restructure the Itic sector. Guangzhou
Shipyard has about 110 million yuan in overdue deposits
with Gzitic and another 290 million yuan that will fall due
for repayment in March at the latest.


GERMAN KITCHEN (CHINA): Police alerted to $100m payments
--------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, liquidators have called in the police after
uncovering "irregular payments" of at least $100 million at
bankrupt kitchenware German Kitchen (China) which is a
subsidiary of GKC Holdings.

KPMG Peak Marwick said the payments had been made during
the 12 months prior to the company's liquidation on October
21. A KPMG partner said German Kitchen had a very limited
amount of existing assets such as bank deposits and would
cease operations as soon as it completed a small number of
unfinished contracts. GKC, in which Citic Beijing holds an
indirect 28.8 per cent stake through Shortbridege, has
become virtually dormant since German Kitchen went into
liquidation.

Lippo group managing director said yesterday the group's
broking arm Lippo Securities still held a GKC stake worth
$7 million. Separately GKC directors two months ago raised
the possibility of fraud in the wake of missing documents
which included sales and purchase contracts, purchase
orders and evidence of receipts for goods, collection
records and payment record. The disappearance is being
probed by the Commercial Crime Bureau.


LAI SUN DEVELOPMENT: Lai Sun eyes $3b asset sale
------------------------------------------------
According to the South China Morning Post, debt-ridden Lai
Sun Development (LSD) plans to raise $3 billion from hotel
and property sales in an attempt to cut debts to $7 billion
within a year. It said two rights issues announced this
week to raise about $1.5 billion had lifte3d the immediate
loan-repayment pressure. Director of LSD and parent Lai Sun
garment (International) said lenders had stopped calling.

At its peak, Lai Sun Development's gearing was more than 60
per cent after the US$6.9 billion purchase last year of
Furama Hotel Enterprises. The company has been selling
assets since the beginning of this year but its gearing is
still at 50 per cent and its has debts of HK$10 billion
of which $1.8 billion has to be repaid next year. The
company's target is to lower its gearing to below 40 per
cent in a year.

Scheduled property sales next year include its joint-
venture residential project at the first phase of the
Kowloon Station on the airport railway and a residential
project in Yuen Long. The group continue to dispose of
its investment properties -- Crocodile House One and Two.

Earmarked for disposal are stakes in the Four Seasons Hotel
in New York and the Regent Beverly Wiltshire Hotel in Los
Angeles.

A Hong Kong Standard report covers essentially similar
points.

Lai Sun Garment announced a $575 million four-for-one
rights issue at 50 cents per share, together with a $39
million new share to Far East Consortium International and
Yoshiya International. Following the deals, Nan Fung
Development's Chen Din-hwa will hold 24.12 per cent stake
in LSD and become its second-largest single shareholder. Mr
Chen had not shown any intention to join the board of
directors but possibility is not ruled out, according to
LSD.


NEW CHINA HK: Claims mount against Tsui and New China group
-----------------------------------------------------------
According to the South China Morning Post, claims against
troubled New China Hong Kong Group and its controversial
founder -- Beijing-linked businessman Tsui Tsin-tong --
have intensified as some creditors move to have the company
liquidated.

The Bank of China yesterday filed a petition against Mr
Tsui and four other parties on claims it was owed more than
HK$31 million. The writ names a firm called Silver March
Industrial, whose registered place of business is in the
CNT Tower, and four of its directors and shareholders --
including Mr Tsui, Tsui Chi-kin, Tsui Hoi-shan and Wu Hong
Cho -- who provided loan guarantees for Silver March.

Earlier this week the International Bank of Asia (IBA)
filed a petition to have New China wound up. An IBA
spokesman yesterday said it was owed about US$1 million by
New China but the borrowers were secured by collateral and
deposits in IBA. Dao Heng Bank took legal action on an
overdraft granted to New China Hong Kong Finance in
December 1995. Mr Tsui is facing action from Irison
Development on behalf of Cornhill Development over an
alleged unpaid loan and interest amounting to HK$37
million.

The firm recently claimed it was no longer in financial
difficulties after raising cash from the selling of loss-
making finance and broking arm New China Hong Kong
Financial Services to Century City International Holdings
in September.

New China was founded in 1993 with $400 million by a
consortium of leading Hong Kong, mainland and Singapore
investors to introduced into China overseas funds and
Western technology and management skills.

Besides Mr Tsui, founding shareholders included Goldman
Sachs China, Century City, Shougang Holding (HK), Capital
Asia, Goodwill International (Holdings) and China Civil
Engineering Construction.


SING TAO HOLDINGS: Slides into $13.79m interim loss
---------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Sing Tao Holdings plunged to a $13.79 million
attributable loss in the six months to September from a
$121.21 million profit in the same period last year,
largely due to a slump in advertising revenue and property
sales.

The Hong Kong Standard said that the net interim loss came
after an exceptional profit of $53.11 million arising from
the sale of a 50 per cent interest in Sing Tao Newspapers
(Canada 1988) Limited and a 75 per cent interest in Sing
Tao Daily Ltd. to Toronto Star Newspapers. The two
companies hold the group's newspaper operations in Canada.

Loss per share for the period was 3.29 cents compared with
earnings per share of 28.5 cents for the same period last
year.

According to the South China Morning Post, Sing Tao's
turnover almost halved to $659.82 million from $1.18
billion previously. Operating loss was $62.21 million
against a $156.61 million profit previously. Combined
turnover of Sing Tao Daily News and Hong Kong Standard
dropped $270.3 million.

The company booked a $53.1 million exceptional gain from a
string of agreements that grouped its newspaper operations
in Canada into an associate company, which means
contributions from its media business in Canada no longer
are consolidated into group turnover. Sing Tao's printing
division saw its turnover sliding almost $90 million.
Property operations, mainly in Canada, were hit by a
decline in apartments available for sale. Turnover fell by
$75.7 million.

The poor performance raised concern over the prospects of a
proposed sale to China Enterprise Development Fund. A prime
condition of the deal is satisfactory due diligence of Sing
Tao's balance sheet and operations. Salomon Smith Barney
regional media analyst Kaushik Shridharani described the
company's performance as embarrassing and the terms of the
share sale as "a most disappointing transaction". He said
intrinsic value in Sing Tao is more likely to be realised
with the departure of Ms Aw, but he did not see what value
the buyer brings to Sing Tao's core operations.


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

INDOFOOD: Seeks nod for new chief
---------------------------------
The Singapore Business Times says Indonesian noodle giant
PT Indofood Sukses Makmur planned to seek shareholder
approval in January for a new president director in the
company, an official said yesterday.

"President director of Indofood Anthony Salim and a
commissioner, Sudwikatmono, are expected to be replaced,"
said the official, who asked not to be named.

The change in the positions follows the sale of a 60 per
cent stake in Indofood to Hongkong-based conglomerate First
Pacific Co Ltd and Japan's Nissin Food Products Co. First
Pacific and Nissin will joinly buy the stake for US$570
million (S$942.8 million) from the Salim family and
associated investors.

"Anthony Salim who represents Salim Group will have a 2 per
cent stake in Indofood after the acquisition," the official
said.

Mr Sudwikatmono is the brother-in-law of disgraced former
President Suharto and Anthony Salim's father, Liem Sioe
Liong, is one of Mr Suharto's oldest and closest friends.

Indofood, affected by the current economic crisis, has
about US$1 billion in debt, which will remain with the
company.


LIPPO BANK: Shareholders approve rights issue
---------------------------------------------
Indonesia's PT Lippo Bank won approval from shareholders     
yesterday to launch a rights issue of 17.1 billion shares
with a nominal price of 10 rupiah each, according to
Singapore Business Times.

"The rights issue will raise some 4.7 trillion rupiah
(S$991.7 million)," Lippo Bank said in a statement after
the shareholders meeting, adding that the offer price would
be 275 rupiah.

Lippo Bank is the first listed company to launch a rights
issue with the nominal value of 10 rupiah, the smallest
allowed. Normally, Indonesian shares have a nominal value
of about 500 rupiah.

Analysts said many companies should lower their nominal
price if they issued new shares because share prices have
fallen below 500 rupiah in many cases because of the
economic meltdown.


=========
J A P A N  
=========

FUJITA CORP: Seeks debt forgiveness from banks
----------------------------------------------
Bloomberg reports shares of Fujita Corp. fell 1 yen to 60.
The company said it's asking its main banks to forgive
debt, becoming the third financially troubled construction
company in two months to seek help. It asked Sakura Bank
Ltd. and Tokai Bank Ltd. to forgive loans worth 100 billion
yen ($862 million) and other banks to waive up to a
combined 30 billion yen, media reports said.


ISUZU MOTORS: Automaker to cut 4,000 jobs
-----------------------------------------
AP Online says Japanese car maker Isuzu Motors Ltd.
announced Thursday it will eliminate 4,000 jobs and reduce
debt as part of a restructuring drive to shore up
profitability. Isuzu, an affiliate of U.S.-based General
Motors Corp., said the plan will help it achieve its goal
of 710 billion yen ($6.1 billion) in domestic auto sales
and a pretax profit of 10 billion yen ($86 million) in
fiscal 2000.

The announcement comes amid a wave of consolidation within
Japan's auto industry, which has been battered by flagging
domestic demand and Asia's financial crisis.

Isuzu, one of the world's leading truck makers, said the
job reductions will be accomplished through attrition and
by reducing the number of staff from employment agencies.
It said it hasn't set a time frame for the cuts.

The company said it aims to reduce its 1 trillion yen ($8.6
billion) in interest-bearing debt by around 300 billion yen
($2.58 billion) by March 2000.


LONG TERM CREDIT: Gov't to fix eligible borrowers by Jan 20
-----------------------------------------------------------
The Financial Reconstruction Commission plans to
decide by Jan. 20 next year whether to allow some 700
corporate borrowers from the Long-Term Credit Bank of Japan
(LTCB) to continue having the loans, commission sources
said Thursday.

Kyodo News says LTCB loans to these companies are defined
as those which require caution in collection and the
commission plans to pick eligible borrowers on a case-by-
case basis in view of their recovery risks, they said.

The commission is charged with making a decision on whether
to let the nationalized LTCB continue its loans to
borrowers so as to protect "sound and honest" corporate
borrowers and prevent them from becoming irrecoverable.


SEKSUKI HOUSE: Moody's cuts long-term debt rating
-------------------------------------------------
Bloomberg reports shares of Sekisui House Ltd. fell 4 yen
to 1,245 on an inflow of 280.65 million yen. Japan's
largest prefabricated house supplier on Tuesday had its
long-term debt rating cut one notch by Moody's Investors
Service, on concern its cash flow and ability to repay
debts will be hurt by the slump in the housing industry.


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

HANBO IRON & STEEL: Dongkuk Steel possible winner of bid
--------------------------------------------------------
The Korea Herald reports Dongkuk Steel Mill Co.
increasingly appears to be the winner of the international
bid to take control of bankrupt steel giant, Hanbo Iron and
Steel Co., sources close to the deal said yesterday.

According to the sources, creditor banks of Hanbo have
agreed in principle to sell off the insolvent steel
producer to Dongkuk. Dongkuk was one of the two final
bidders along with NTS of Thailand at last week's bidding.
Although the latest auction was also aborted, creditors
decided to sell off Hanbo through private contracts with
prospective buyers, they said.

Creditors and Dongkuk were known to have agreed to accept
up to 1,300 workers of Hanbo, while paying part of the
price on an installment basis, as soon as the price terms
are met. Dongkuk Steel is still regarded as the best choice
to acquire Hanbo which went bankrupt in January last year.
Creditor banks are in a position to sell off Hanbo next
January if and when Dongkuk offers to acquire Hanbo at a
favorable price. At the international bidding, Dongkuk
officials had offered to buy Hanbo's Tangjin plants for
about 1 trillion won ($826 million). It is likely that
Dongkuk may readjust the price higher at the request of the
creditors, the sources said.

Analysts forecast that the restructuring process of the
domestic steel industry will be facilitated if Hanbo is
taken over by Dongkuk in January. Dongkuk, after acquiring
Hanbo, will emerge as the nation's second biggest
steelmaker behind Pohang Iron and Steel Co. (POSCO). If
Dongkuk fully operates the plant facilities of Hanbo, the
steelmaker will produce up to 10.9 million tons of steel
annually, analysts said. POSCO produced 26.43 million tons
of steel last year.


HYUNDAI ELECTRONICS: Hyundai to control joint chip company
----------------------------------------------------------
Hyundai Electronics Industries Co. was named as winner of
the drawn-out battle with LG Semicon Co. to hold a
controlling stake of their proposed joint semiconductor
company by a U.S. evaluating agency yesterday. LG Semicon,
however, immediately refused to accept the judgement,
casting a dark cloud over their eventual consolidation into
the world's second-largest memory chip maker.

Announcing the results of its month-long evaluation of the
two semiconductor makers, the U.S. consultant, Arthur D.
Little, said that Hyundai earned better grades than LG in
almost all of the 15 criteria, including technology,
production, marketing and finances.


KIA MOTORS: Ford Motor likely to acquire new Kia shares
-------------------------------------------------------
The Korea Herald reports Ford Motor Co. of the United
States is expected to acquire a stake in Kia Motors Corp.
to become the second largest shareholder after Hyundai
Motor Co., a senior Hyundai official said yesterday. "Ford
is likely to take over a certain portion of the 51-percent
holding of new Kia shares Hyundai will acquire.

Negotiations have been under way for a possible equity
participation with Ford," said the official who requested
anonymity.

Meanwhile, Ford sold its 9.04 percent stake in Kia to U.S.
investment company, J.P. Morgan, through ING Barings
Securities Co. Tuesday. Ford's sell-off of Kia shares is
designed to reduce losses stemming from its earlier
investment in the bankrupt motor company, industry watchers
said.

The Korea Times says the purchasers of Kia shares owned by
Ford have not been confirmed yet, but Kia will soon put
information regarding the sellers and purchasers of the
shares on the bulletin of Korea Stock Exchange, he
explained.


LG SEMICON: Hyundai to control joint chip company
-------------------------------------------------
Hyundai Electronics Industries Co. was named as winner of
the drawn-out battle with LG Semicon Co. to hold a
controlling stake of their proposed joint semiconductor
company by a U.S. evaluating agency yesterday. LG Semicon,
however, immediately refused to accept the judgement,
casting a dark cloud over their eventual consolidation into
the world's second-largest memory chip maker.

Announcing the results of its month-long evaluation of the
two semiconductor makers, the U.S. consultant, Arthur D.
Little, said that Hyundai earned better grades than LG in
almost all of the 15 criteria, including technology,
production, marketing and finances.


ROCKET ELECTRIC: Trade commission OKs purchase by Gillette
----------------------------------------------------------
The Korea Times reports a business regulatory body has
given conditional approval to the acquisition of Rocket
Electric by Gillette of the United States, paving the way
for the realization of corporate mergers and acquisitions
which are feared to increase monopolies.

In announcing the results of a ruling that was made on Dec.
9, the Fair Trade Commission said yesterday that it decided
to approve the Gillette-Rocket deal in consideration of the
fact that Rocket Electric has no alternative way of staying
afloat.

"In addition, we considered the positive effects of the
deal such as the introduction of foreign funds," the FTC
said.

The regulatory body's approval of the deal is drawing
particular attention because it sets a precedent that the
FTC might be willing give the go-ahead even to deals which
are liable to deepen monopolies.

Gillette took over Rocket Electric, which is listed on the
Korea Stock Exchange, for $60 million. The company's
combined consumer battery market share rose to 58.9 percent
after the acquisition, raising the specter that the merger
will restrict market competition. In 1997, the country's
battery market volume reached 156.4 billion won.

The FTC ordered Gillette to maintain the wholesale prices
of Rocket Electric's alkaline batteries below certain
levels for five years from Jan. 1 next year to keep the
U.S. company from taking advantage of its monopolistic
position to raise prices sharply.

Rocket Electric and its two affiliates had been in a state
of capital deficit due to cumulative losses since 1995.
Without the acquisition by Gillette, Rocket Electric would
have defaulted on its loans, the FTC said.


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

AMSTEEL CORP: Amsteel lines up $3b sale
---------------------------------------
According to the South China Morning Post, Amsteel Corp,
one of Malaysia's biggest industrial groups and one of
several publicly-listed companies under the Lion Group,
plans to sell assets worth M$1.6 billion in the next six
months to raise money to repay some debts.  

The company's managing director said this would allow the
company plan to be more focused. The planned sales,
representing about 15 per cent of the company's total
assets, would include some property and steel businesses in
Malaysia and the mainland.

Amsteel lost $1.1 billion inn the year to June 30, compared
with a profit of $133.3 million a year earlier. It has $4.7
billion in borrowings that are due in a year or less. Its
long-term debts total $4.2 billion.


CARLTON STAR HOTEL SDN BHD: Winding-up petition
-----------------------------------------------
Harp Key Trading Sdn Bhd on 15/12/98 petitioned for the
winding-up of Carlton Star Hotel Sdn Bhd. The petition is
directed to be heard on 5/3/99.


GADEK CAPITAL BHD: Results - 30/9/98
------------------------------------
Gadek Capital Bhd reported a post-tax loss of RM18.525mil
for the 6months ended 30/9/98, compared to a post-tax
profit of RM1.745mil. EPS dropped 1,160% from 1sen to a
loss per share of 10.6sen during the same period.


INDERALOKA KIARA SDN BHD: Winding-up petition
---------------------------------------------
Perniagaan Berjaya on 15/12/98 petitioned for the winding-
up of Inderaloka Kiara Sdn Bhd.


KM MUSIC LINES SDN BHD: Winding-up petition
-------------------------------------------
Soon Hin Hardware Sdn Bhd on 4/11/98 petitioned for the
winding-up of KM Music Lines Sdn Bhd. The petition is
directed to be heard on 12/2/99.


MBF NORTHERN SECURITIES: SC rejects plan to buy MBf unit
--------------------------------------------------------
According to Singapore Business Times, the Malaysian
Securities Commission has rejected stockbroker OSK Holdings
Bhd's plan to buy 70 per cent of MBf Northern Securities
Sdn Bhd in northern Peninsular Malaysia. But OSK said the
market watchdog had approved its plan to open a
stockbroking branch in the capital of northern Perak state,
Ipoh, if it could meet a number of conditions.

"The Securities Commission could not consider the proposed
acquisition as the proposal was not consistent with the
Commission's policy objectives in relation to the
consolidation of the stockbroking industry," OSKsaid.

In July, OSK said it planned to buy the stake in the
financially troubled MBf Northern Securities Sdn Bhd from
financial services firm, MBf Capital Bhd, for 8.39 million
Malaysian ringgit (S$3.6 million).

OSK said the commission would approve the setting up of an
OSK branch in Ipoh if the company paid RM15 million in cash
to MBf Northern.

MBf Capital would also have to surrender its stockbroking
licence to the commission and use the cash paid by OSK to
repay "essential" creditors of its stockbroking unit.


NEW WORLD SHOPPING MALL SDN BHD: Voluntary winding-up
-----------------------------------------------------
The members of New World Shopping Mall Sdn Bhd on 21/12/98
resolved to wind-up the company voluntarily.


SENG TECK HOOI ENTERPRISE SDN BHD: Voluntary winding-up
-------------------------------------------------------
The members of Seng Teck Hooi Enterprise Sdn Bhd on
18/12/98 resolved to wind-up the company voluntarily.


SITT TATT BHD: Results - 30/9/98
--------------------------------
Sitt Tatt Bhd reported a post-tax loss of RM8.844mil for
the 6months ended 30/9/98, compared to a post -tax profit
of RM8.384mil. EPS fell 213% from 9.2sen to a loss per
share of 10.4sen during the same period.


STERIPAK SDN BHD: Winding-up petition
-------------------------------------
Lawson Mardon Packaging UK Ltd on 15/12/98 petitioned for
the winding-up of Steripak Sdn Bhd.


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

DBS LAND: Shares pull back after deal denial
--------------------------------------------
Singapore Business Times says DBS Bank's foreign shares
fell 3.8 per cent yesterday after the biggest bank in
South-east Asia by assets denied speculation it is selling
its stake in DBS Land, Singapore's second-largest publicly
traded property developer. On Tuesday, the bank's foreign
shares rose 8.3 per cent to $15.70, a 16-month high, amid
speculation it was selling the 28.3 per cent stake to
Pidemco Land, a closely held government-owned property
developer.

A spokeswoman at the bank said the speculation wasn't true.


HOUR GLASS: In the red with $4.9m interim loss
----------------------------------------------
Singapore Business Times says luxury watch manufacturer and
retailer The Hour Glass has slipped into the red, posting a
half-time net loss of $4.9 million due mainly to the
restructuring of its European operations. Loss per share
came to 4.5 cents, in sharp contrast to interim earnings
per share of 4.9 cents last year when the company made a
net profit of $5.3 million. For the six months ended Sept
30, group turnover more than halved to $115.8 million.


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

ALPHATEC: Charges against executives likely soon
------------------------------------------------
According to the Bangkok Post, police expect to lay
criminal charges next month against 12 former executives of
two defunct finance companies and Alphatec Electronics Plc.

Investigations into complaints filed against the executives
were being concluded and arrest warrants would be issued
next month, according to Pol Maj-Gen Somwong Lipipun,
commander of the Economic Crime Investigation Division.
Of the 12 people named in various complaints of financial
misappropriation, two were formerly with Alphatec, six were
with General Finance and Securities Plc, and four were with
Sitca Investment and Securities Plc.

And in a surprising twist, police plan to issue a warrant
for the accuser of Charn Usawachoke, the former chief
executive of Alphatec.

Waree Havanonda, chairwoman of Alphatec, made the original
complaint against Mr Charn, who was alleged to have
funnelled company funds into other ventures without the
knowledge of directors and management. Mrs Waree, a former
assistant governor of the Bank of Thailand, oversaw the
1984 rescue of Asia Trust Bank after several billion baht
was allegedly misappropriated by Wallob Tarnvanichkul. Mr
Wallob, alias Johnny Ma, is still at large. The bank was
later renamed Sayam Bank and was eventually liquidated.
Mrs Waree and Mr Charn would be charged with causing damage
worth 3.59 billion baht to Alphatec, Pol Maj-Gen Somwong
said.


AROMATICS THAILAND: Seeking new financing
-----------------------------------------
The Nation Aromatics (Thailand) Plc will have to seek
US$120 million for financing its operations and debt
repayment next year, its management said.

ATC senior vice-president Mr Sirisak Sukswasdi said the
financing needs could be met by various instruments
including loans, shareholders' support and a capital
increase.

He said the US$120 million financial plan is separate from
the company's plan to negotiate for new strategic
investors.

Being one of Thailand's two operating aromatics producers,
ATC has US$401 million in outstanding debts, which are all
long-term loans due in 2007. However, the company has to
pay US$30 million per annum in interest and principal.
ATC is also negotiating with its 14 international creditor
banks led by Japan's Sanwa Bank for debt rescheduling next
year. The company has met all its debt repayment
obligations for this year.

With the current registered capital of Bt4 billion, ATC is
owned 44 per cent by state-owned Petroleum Authority of
Thailand (PTT), 15.11 per cent by Siam Cement Plc, and 7.09
per cent by Ban Pu Plc.

ATC president Charan Buraparat said there are two to three
investors interested in purchasing stakes including US firm
Chevron which is currently at an information gathering
stage. Negotiations for the new partners will be undertaken
by PTT.

Financially-troubled Thai Petrochemical Industry Plc is
currently ATC's sole domestic competitor. However, Exxon
Corp is building a world-scale aromatics plant as an
integrated unit at the Esso (Thailand) Plc refinery in
Sriracha.


BANGKOK BANK: Charges against executives likely soon
----------------------------------------------------
According to the Bangkok Post, police expect to lay
criminal charges next month against 12 former executives of
two defunct finance companies and Alphatec Electronics Plc.

Investigations into complaints filed against the executives
were being concluded and arrest warrants would be issued
next month, according to Pol Maj-Gen Somwong Lipipun,
commander of the Economic Crime Investigation Division.

The commander also said that police had broadened their
investigation into the case of the defunct Bangkok Bank of
Commerce.

He said officers investigating allegations against former
BBC executives had gathered more evidence that could be
used to lay charges against up to 76 companies that had
borrowed from the bank.

Police were now consulting with the Attorney General's
Office on which companies would be charged and which ones
would be sought as witnesses, he said.


GENERAL FINANCE: Charges against executives likely soon
-------------------------------------------------------
According to the Bangkok Post, police expect to lay
criminal charges next month against 12 former executives of
two defunct finance companies and Alphatec Electronics Plc.

Investigations into complaints filed against the executives
were being concluded and arrest warrants would be issued
next month, according to Pol Maj-Gen Somwong Lipipun,
commander of the Economic Crime Investigation Division.

Of the 12 people named in various complaints of financial
misappropriation, two were formerly with Alphatec, six were
with General Finance and Securities Plc, and four were with
Sitca Investment and Securities Plc.

In the case involving General Finance, one of the accused
is Narongchai Akrasanee, the company's former chairman and
former commerce minister in the Chavalit Yongchaiyudh
government. The others are: M.R. Suchartchan Prawitr,
former president; Naruenart Rattanakanok, former managing
director; Thanavorn Niyom, former assistant managing
director for credit; Jamaree Nonthatham, former assistant
managing director for financial management; and Pattanit
Kumpalum.

The Bank of Thailand alleged that the six had extended
loans totalling 338.1 million baht with insufficient
collateral.


QUALITY CEMENT: Phatra Thanakit files petition
----------------------------------------------
The Nation reports Phatra Thanakit Plc led other major
creditors of Quality Cement Co Ltd to file a petition for
rehabilitation, by which the cement company would be
appointed planner of a rehabilitation programme.

Quality Cement operates a stone grinding business to supply
materials for industrial production.

Creditors nominated the cement company as the planner
because the creditors agree that the company has experience
in operating the cement business and will therefore be
better able to identify and solve problems.

Phatra Thanakit cited in its petition, submitted to the
court yesterday, that the cement company borrowed four
amounts totalling Bt220 million from Feb 10, 1994 to April
1 this year.

Bt60 million of the loans is backed by two land plots in
the Phattana Nikhom district of Lop Buri province.

"However, the debtor notified Phatra Thanakit later that it
is incapable of servicing the debts. Moreover, the debtor
also asked Thai Farmers Bank for a debt moratorium," Phatra
Thanakit said in the petition.

The finance company, which is about to merge with TFB,
concluded that these actions showed that the cement company
could not service its debts.

The finance company also told the court that aside from TFB
and Phatra Thanakit, Quality Cement also owed an additional
Bt523 million to other financial institutions. The
borrowings include those extended by AIG Finance (Thailand)
Ltd, Bt20 million; Siam City Credit Finance & Securities
Plc, Bt20 million; and Ekachart Finance & Securities Plc,
Bt50 million.

"However, an independent valuer estimated that the
company's assets are valued at only Bt262 million," the
finance company said.

It explained that prior to the filing, creditors and the
debtor discussed options and they agreed that the debtor
company is facing liquidity problems, high production
costs, and marketing problems.

"However, if the court endorses the rehabilitation request,
the debtor will be able to repay the loans because in the
past the debtor operated businesses  with care, advanced
machinery, promotional privileges from the Board of
Investment and a quality workforce," the creditors' leader
said.

It further said that currently the company is operating at
only 27 per cent of its capacity. The company also has
contracts to supply limestone cement to China for 17
months. After the period, the company will be capable of
exporting 2,500 tonnes of the product per month.

Therefore, the creditor said, with financial injection,
debt restructuring and production system restructuring, the
debtors should be able to revive the business.


SIAM CEMENT: In talks to sell units' stakes to Toyota
-----------------------------------------------------
Siam Cement plc is in talks with Toyota Motor Corp to sell      
further stakes in joint ventures as part of the Thai
group's restructuring, according to Singapore Business
Times.

In a statement to the Stock Exchange of Thailand yesterday,
the country's largest industrial conglomerate said its
board of directors had approved in principle on Nov 25 a
plan to reduce its stakes to 30 per cent each in its metal
producers -- The Nawaloha Industry Co Ltd, Siam AT Industry
Co Ltd and Thai Engineering Products Co -- from 41, 49 and
50 per cent respectively.

Toyota is also being asked to buy another 20 per cent of
Siam Toyota Manufacturing Co -- an engine producer --
lowering Siam Cement's holding to 20 per cent from 40 per
cent.

Negotiations are underway, Siam Cement said in response to
a report in The Nation daily, which on Tuesday said that
Toyota had agreed to raise its equity stakes at the four
institutions and take over some 2 billion baht (S$91.1
million) in the combined debt of metal-producing joint
ventures.

Separately, Siam Cement said yesterday it has made a tender
offer of 250 baht a share for the 49 per cent shares in
Siam Tyre plc it does not already own in order to delist
the company.

In a statement to the Stock Exchange of Thailand, Siam
Cement said it has appointed Merrill Lynch Phatra
Securities as its financial adviser for the offer.

The SET said it has suspended trading in Siam Tyre shares
in the afternoon session.


SITCA INVESTMENT: Charges against executives likely soon
--------------------------------------------------------
According to the Bangkok Post, police expect to lay
criminal charges next month against 12 former executives of
two defunct finance companies and Alphatec Electronics Plc.

Investigations into complaints filed against the executives
were being concluded and arrest warrants would be issued
next month, according to Pol Maj-Gen Somwong Lipipun,
commander of the Economic Crime Investigation Division.

Of the 12 people named in various complaints of financial
misappropriation, two were formerly with Alphatec, six were
with General Finance and Securities Plc, and four were with
Sitca Investment and Securities Plc.

The four former Sitca executives are Veera
Manakongtricheep, who was the company's president, and
three former vice-presidents: Suwan Sirisunthornlert,
Veeravuth Sappakit and Somyos Chairattaworakul.
They are accused of siphoning 1.17 billion baht from the
company, according to Pol Maj-Gen Somwong.


TRI PETCH: Mitsubishi lends B6bn to Tri Petch
---------------------------------------------   
Mitsubishi Corporation (Japan) has provided a six-billion-
baht long-term loan to help Tri Petch Isuzu Sales,
according to the Bangkok Post.

The loan, made through newly-established affiliate MC
Automobile (Thailand) will help Tri Petch Isuzu Sales to
carry out sales promotions, repay debt and reduce costs.
Hisashi Kunifusa, president of Tri Petch Isuzu Sales, said
economic downturn had badly affected the company, but it
had not encountered financial stress as it was strongly
supported by its parent in Japan.

Tri Petch Isuzu Sales had suspended the operation of its
new plant at the Gateway Industrial Estate, Chachoengsao,
in 1997. The 250-rai plant is designed to produce a total
of 20,000 one-ton pickups and trucks.
  

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.  

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