TCRAP_Public/981229.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      

         Tuesday, December 29, 1998, Vol. 1, No. 216
  
                          Headlines

* C H I N A   &   H O N G   K O N G *

INTERFORM CERAMICS: Clinches Agreement with China Wealth
HWA KAY THAI: Hwa Kay Thai pins hopes on rescue bid
KOSONIC INTERNATIONAL: Announces Restructuring Proposal
LAI SUN: Far East takes up Lai Sun allotment
MULTI-ASIA INTERNATIONAL: Half-Year Results of Operations
NEW CHINA: ING Bank Asserts HK$107m Claim Against Chairman
PEREGRINE CAPITAL: Meeting of Creditors
THEME INTERNATIONAL: Raises HK$23 Million from Fitlady Sale
TOKYO TOMIN: Deadline to Present Claims

* I N D O N E S I A *

POLYSINDO EKA PERKASA: CS First Boston sues Polysindo

* J A P A N *

FUJITA CORP.: Unveils Five-Year Restructuring Plan
LONG TERM: LTCB's misjudgment on loans to troubled firm revealed
SASAKI GLASS: Asking Banks to Forgive Loans
TOKYU CONSTRUCTION: Slashing Workforce to Cut Costs

* K O R E A *

HANBO STEEL: Hanbo Steel denies sale deal
HYUNDAI GROUP: Six Subsidiaries Added to Moody's Watch List
KIA MOTORS: Ford Lightens Equity Interests in Kia
KIA MOTORS: Sets-Up Shop in Michigan
KIA MOTORS: Additional W4 Trillion Debt Uncovered At Kia
LG SEMICON: Govt. Says it Will Call Loans Absent Hyundai Merger
LG SEMICON: Creditors Agree to Stop Extending New Loans
LG SEMICON: Plans to Sue Arthur D. Little over Negative Report
SAMSUNG PLAZA: Retailer Announces Declining Sales & Downsizing

* M A L A Y S I A *

ARAB-MALAYSIAN CORPORATION: Half-Year Financial Results
CIU (MALAYSIA): Voluntary winding-up
DAX FOODS: Winding-up Petition
DELTA DRIVE: Winding-up petition
KILANG PAPAN: Voluntary winding-up
ODA HOLDINGS: Winding-up petition
PELANGI BHD: September 30 Operating Results
PEMBINAAN LIMBONGAN: September 30 Operating Results
QUANTUM STORAGE: Voluntary winding-up
RENONG BHD: Renong debt plan to be settled by mid-Jan

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

MONDRAGON INTERNATIONAL: CIBI cuts Mondragon credit rating
PHILIPPINE AIRLINES: PAL claims Cathay still keen on bailout
PHILIPPINE AIRLINES: State Pension Fund May Make Investment

* S I N G A P O R E *

VISION GROUP: Roly's VGI files bankruptcy petition

* T H A I L A N D *

ALPHATEC ELECTRONICS: Why the Plan was Rejected
THAI FARMERS: Bank may issue additional shares


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


INTERFORM CERAMICS: Clinches Agreement with China Wealth
--------------------------------------------------------
According to the South China Morning Post, Interform Ceramics
Technologies, which last month unveiled a $1.7 billion rescue
deal involving China Wealth Group, said the firm and its chairman
had clinched a conditional subscription agreement with the
rescuer and principal terms of the subscription agreement and
further information on China Wealth will be released soon.   
However, as at December 24, the matter remained unresolved.
Trading in the shares of Interform has been suspended since
December 22 and will continue to be suspended until further
notice.


HWA KAY THAI: Hwa Kay Thai pins hopes on rescue bid
---------------------------------------------------
According to the Hong Kong Standard, clothing manufacturer and
distributor Hwa Kay Thai, facing the threat of a possible
liquidation, said yesterday a last-ditch rescue package may be
concluded by mid-January.  Officials of the company said
negotiations with creditors were going on and a negative outcome
may trigger liquidation.

According to the company, under a Nov 21 agreement, Shine United
International, wholly-owned by Patrick Wong, would acquire a 57.4
per cent stake in Hwa Kay Thai through the purchase of 600
million new shares for $60 million, which would reduce Hwa Kay
Thai's share capital from 50 cents to one cent.  At the same
time, the company proposed a debt restructuring plan whereby
creditor banks and principal creditor Puman, the German
sportswear designer, would waive 55 per cent of debts owed to
them by Hwa Kay Thai in return for a respective 10 per cent
interest in the company.

Hwa Kay Thai's managing director Ronald Yue said that if
everything went to plan, Shine, which was in the property
business and had a joint venture beer factory on the mainland,
would come in as the majority shareholder by the end of February.
He said Mr Wong intended to continue the company's garment
distribution business on the mainland and he said there was
latent value in the China market.


KOSONIC INTERNATIONAL: Announces Restructuring Proposal
-------------------------------------------------------
SOUND OCEAN INVESTMENT LIMITED and KOSONIC INTERNATIONAL HOLDINGS
LIMITED made a joint announcement last week concerning the on-
going restructuring, winding-up and rescue of Kosonic.  

On 22 December 1998, Kosonic's factory premises together with
their underlying land located in the PRC were sold for about
RMB9.20 million (about HK$8.60 million),  

To date, Kosonic has not formally commenced the Shareholders
Scheme and the Creditors Scheme nor has it received any formal
approval from the Stock Exchange in relation to the Proposal and
the other conditions of the Proposal have not been fulfilled.


LAI SUN: Far East takes up Lai Sun allotment
--------------------------------------------
According to the South China Morning Post, property developer Far
East Consortium International yesterday confirmed it would take
up its allotment of shares in a controversial $600 million four-
for-one rights issue by Lai Sun Garment (International).  
Minority shareholders have been unhappy with Lai Sun's frequent
cash calls.


MULTI-ASIA INTERNATIONAL: Half-Year Results of Operations
---------------------------------------------------------
For the half-year ending September 30, 1998, Multi-Asia
International Holdings Limited reports an HK$45.7 million loss on
HK$52.2 million in revenues.  During the half-year period, Multi-
Asia forfeited HK$2.3 million of deposits by a vendor from the
abandoned acquisition of a Hong Kong property.


NEW CHINA: ING Bank Asserts HK$107m Claim Against Chairman
----------------------------------------------------------
According to the South China Morning Post, ING Bank's writ
claiming New China Hong Kong Group's chairman, Tsui Chin-tong
owes more than $107.1 million is the latest in a string of claims
totalling about $186 million filed since December 10 against Mr
Tsui and his New China Hong Kong Group.

The Bank of China is claiming $31 million and International Bank
of Asia this week filed a petition to have New China wound up.
New China is also facing legal action from Dao Heng Bank as
guarantor on an overdraft granted to New China Hong Kong Finance.
Irison Development is suing Mr Tsui over an alleged unpaid loan
and interest amounting to $37 million.

The ING Bank petition relates to over-the-counter selling in
August 1996 by New China Hong Kong Capital (NCHKC) of options on
200 million shares in Pearl Oriental to ING Baring Financial
Products (ING BFP), a unit of the bank. Mr Tsui is being pursued
as guarantor of NCHKC's liabilities.

According to the writ, the options entitled ING BFP to sell Pearl
Oriental shares to NCHKC at $3.08 each at any time before
September 4 last year.  In March last year Pearl Oriental
announced a two-for-one share split, which resulted in the terms
of the option deal being changed to 400 million shares at a
strike price of $1.54. Under the deal, ING BFP was entitled to
sell 400 million shares to NCHKC at $1.54 and pocket the
difference with the market price. Pearl Oriental shares
subsequently plunged in value, standing at $1.21 on September 4,
the date the options expired.  By mid-June last year, ING BFP had
realised NCHKC would be unable to buy 400 million shares at the
strike price by September 4, according to the writ.

Both parties then agreed that NCHKC could sell shares in tranches
on behalf of ING BFP at such prices as it could achieve in the
market and by September 4, NCHKC had sold 16.45 million shares
and paid the full strike price to ING BFP.  ING BFP exercised all
its remaining options on that date but NCHKC filed to purchase
the 383.54 million shares at the strike price, the writ states.

NCHKC had sold a further 217.96 million shares at much depressed
prices as of November 28 last year, creating a shortfall of
$82.44 million between the sale proceeds and the amount ING BFP
would have obtained if the sales were transacted at the strike
price. Both parties then agreed that ING BFP would sell the
remaining 165.58 million shares to NCHKC for $66.23 million. They
also entered into a debt restructuring deed under which they
agreed $140.31 million to be the amount owed by NCHKC to ING
BFP. NCHKC would repay an initial $20 million, with the remainder
in 12 instalments. It managed to pay the first few instalments
but ceased to pay anything after July 2 this year. As at
September 30, NCHKC still owed ING BFP $105.1 million.

The writ said that ING BFP asked NCHKC to make repayment but in
vain.  Mr Tsui is understood to have been trying hard to ease the
debt burden on himself and his business empire.


PEREGRINE CAPITAL: Meeting of Creditors
---------------------------------------
Creditors of Peregrine Capital (China) Limited will meet on
January 13, 1999, at 27/F., Island Place Tower, 510 King's Road,
North Point, Hong Kong, for purposes of the Companies Ordinance
and in particular to consider the resolutions already passed by
the Directors of the Company on Dec. 8, 1998 for the voluntary
winding-up of the Company.


THEME INTERNATIONAL: Raises HK$23 Million from Fitlady Sale
-----------------------------------------------------------
Theme International Holdings Limited announced that disposal of
Theme's 40% interest in Fitlady Investment Holdings Limited was
completed on 23rd December, 1998.  Theme received roughly HK$23
million from the transaction.  The sale proceeds will be used to
to reduce borrowings from banks and Belion Limited, and as to the
remaining towards meeting its working capital needs.


TOKYO TOMIN: Deadline to Present Claims
---------------------------------------
The creditors of TOKYO TOMIN FINANCE (HONG KONG) LIMITED, which  
is being voluntarily wound up, are required on or before Jan 25,
1999  to send in their names, addresses and particulars of their
debts or claims to the Liquidator(s) of the said company, and if
so required by notice in writing from the liquidator(s), 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,   FORMTEXT   they will be excluded from
the benefit of any distribution before such debts are proved.
  
JGW Blaauw, 23/F., Sunning Plaza, 10 Hysan Avenue, Causeway Bay,
Hong Kong, serve as liquidators for the Company.


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


POLYSINDO EKA PERKASA: CS First Boston sues Polysindo
-----------------------------------------------------
According to the Hong Kong Standard, a unit of Switzerland's
Credit Suisse Group, CS First Boston filed a petition on
Wednesday in the US District Court in New York against Polysindo
Eka Perkasa for repayment of US$235 million of bonds issued.

The bank said it was entitled to immediate repayment on its
US$235 million of Polysindo bonds because the company skipped
interest payments.  It is also asking the court to prohibit
Polysindo from doing anything to avoid paying back the bonds,
plus interest because Polysindo and Polysindo International are
insolvent and dissipating assets in a manner that will render any
judgments by this court ineffectual.

Polysindo expressed disappointment over the action.  It will
study the case and prepare a statement next week, the Standard
said.

Polysindo is the biggest polyester manufacturer in Asia, and
accounts for about 20 per cent of the world's polyester
production.  The company said it was struggling from lower prices
and liquidity problem although export volumes are rising and
exports account for about 50 per cent of the company's sales.  It
said prices for its main export earners -- polyester chips,
polyester fibre and yarn -- are now 35-40 per cent lower than the
10-year average and prices for fabric are about 15 per cent
lower.



=========
J A P A N
=========

FUJITA CORP.: Unveils Five-Year Restructuring Plan
--------------------------------------------------
Fujita Corp. announced a five-year restructuring program that
calls for forgiving 50 billion yen in claims on its affiliated
real estate developer while asking six creditor banks to
waive a total of 120 billion yen in debt claims.  

The second-tier construction company said it will report a total
of 280 billion yen in losses for the current business year ending
March 31, 1999, including those related to forgiving 50 billion
yen in its claims on Towa Real Estate Development Co., according
to a report circulated by Kyodo News.

Fujita said it has revised its earnings forecast for the year to
a net loss of 137.3 billion yen because of the losses.

"With this, the disposal of nonperforming assets will be almost
complete," Keishi Kawamata, senior managing director, told a
press conference.  "We've decided to waive our claims on Towa so
as to eliminate credit worries hanging over Fujita and Towa," he
said.  Sakura Bank and Tokai Bank, two of six banks with claims
on Fujita, signaled that they are ready to forgive their claims
on Fujita, Kyodo related.  "We will consider it in a positive
light, although this will be extraordinary support to waive our
claims," Sakura Bank said in a statement.

"We will cooperate with Sakura Bank as the main creditor bank (to
Fujita) and  we are favorably considering a request to forgive
our claims," Tokai Bank said in a statement.

Kyodo indicated that the restructuring program also calls for
cutting Fujita's workforce by 1,200 to 3,900 by March 2002 and
halving the number of board members to 15.  Fujita said it
expects the program to help it curtail its interest-bearing
liabilities by 122 billion yen to 463.8 billion yen by the end of
March 2003.


LONG TERM: LTCB's misjudgment on loans to troubled firm revealed
----------------------------------------------------------------              
The Long-Term Credit Bank of Japan's failure to suspend lending
to a troubled women's clothing sales group caused the LTCB to
incur a total of 20 billion yen in bad loans, according to a 1990
in-house document released Saturday by industry sources and
obtained by Kyodo News.  In 1990, Kyodo reports, when Japan's
asset-inflated bubble economy started to burst, LTCB decided to
continue extending loans to the group Fontainebleau, which was in  
trouble due to its failed real estate business.  Many other
financial institutions withdrew from deals with the group.

Former LTCB president Tsuneo Suzuki, then head of the screening
department, and former vice president Yoshiharu Suzuki, then
chief of the business promotion department, were among others who
allowed lending to the group to continue, according to the
document and industry sources.  Tsuneo Suzuki said, "I remember
the loans were bad ones but I don't recall having been explained
about them."  Kyodo related that the clothing sales group, based
in Tokyo's Shibuya Ward, was a major borrower from failed "jusen"
housing loan companies.  The Ministry of Finance, as a result of
an investigation, judged loans to the group as difficult to
recover.

The LTCB in-house document was compiled by the Tokyo No. 4
business section of LTCB's Tokyo branch on Oct. 31, 1990, several
days after Fontainebleau had its property seized by another
financial institution, Kyodo explained.  The more-than-30-page
document concluded the bank should continue to deal with the
group even though the group's hotel development project in Atami,
Shizuoka Prefecture, was in trouble.  It also mentioned dim
prospects for the group's mainline women's clothing sales
business.  Only a year after the LTCB decided not to suspend
lending to Fontainebleau, the group went bankrupt with
liabilities of about 50 billion yen.  According to industry
sources and the registered books, LTCB, through its non-bank
affiliates, lent some 19.5 billion yen to the group from 1989
through 1990, with property, such as hotels in Atami and Kaga,
Ishikawa Prefecture, as collateral.

A source who then took charge of LTCB's loans acknowledged in an
interview with Kyodo the bank's lax judgment, saying the mistake
was made in an atmosphere where it was as if all 100 million
Japanese were real estate developers.


SASAKI GLASS: Asking Banks to Forgive Loans
-------------------------------------------
Shares in Sasaki Glass Co. (5211 JP) rose 6 yen to 83 in trading
Monday.  The glassware maker reversed its forecast for the year
ending in March to a parent net loss of 10.513 billion yen from a
profit of 20 million yen.  Last week, shares in Sasaki Glass Co.
(5211 JP) traded down 28 yen to close at 77, according to
Bloomberg, L.P.  Sasaki suffered from an 81 million yen loss a
year ago, according to Nikkei English News.  The company has
asked three financial institutions, including main bank Sakura
Bank Ltd. to forgive a total of 12 billion yen, Bloomberg added.


TOKYU CONSTRUCTION: Slashing Workforce to Cut Costs
---------------------------------------------------
Bloomberg, L.P., reports that financially troubled Japanese
general contractor Tokyu Construction Co. (1855 JP) said it will
slash its workforce by a third as part of a plan to return the
company to profitability by March 2001.  It will take a one-time
loss of more than 52 billion yen this year after pulling out of
most of its overseas businesses and unprofitable domestic
subsidiaries.  In trading Monday, shares in Tokyu rose 2 yen to
close at 88.


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


HANBO STEEL: Hanbo Steel denies sale deal
-----------------------------------------
According to the Hong Kong Standard, Hanbo Steel creditors denied
a local news report that they agreed in principle to sell the
insolvent steel maker to Dongkuk Steel Mill, South Korea's
biggest electric-arc furnace steel maker.  The Maeil Business
Newspaper cited an unnamed creditor bank official as saying that
Dongkuk also agreed to employ Hanbo Steel's 1,300 workers and is
negotiating the total value for the takeover.  This was described
as groundless by a manage at Korea First Bank, Hanbo's biggest
creditor, who is in charge of arranging the sale of the insolvent
company.


HYUNDAI GROUP: Six Subsidiaries Added to Moody's Watch List
-----------------------------------------------------------
Korea Investors Service, a local joint venture partner for US-
based Moody's Investors Service, announced last week that six
subsidiaries of Hyundai Business Group have been placed on the
watch list for possible downgrade of their commercial bonds and
commercial papers.  The six affiliates, according to a report
appearing in the ChosunIlbo, include:

     * Hyundai Motor,
     * Hyundai Automobile Service,
     * Hyundai Precision Industry,
     * Hyundai Heavy Industries,
     * Hyundai Merchant Marine, and
     * Inchon Iron & Steel.

KIS said that the six subsidiaries have been increasing their
borrowings due to heavy capital investments and overly onerous
operating expenses.  Because of the credit crunch at the banks,
their financial status has been worsening.  Also, Hyundai is
likely to suffer heavily from fund shortages because of the
absorption of Kia and Asia Motors, the ChosunIlbo speculated.


KIA MOTORS: Ford Lightens Equity Interests in Kia
-------------------------------------------------
Ford Motor Co. has sold its 9% direct equity interest in Kia
Motors Corp., confirmed in newswire reports by Ford spokesman
John Spelich.  Spelich declined to reveal the identity of the
buyer or the amount paid.  Ford continues to control an 8% stake
in Kia through Mazda Motor Corp.

According to a report appearing in the Hong Kong Standard, Ford
Motor is likely to acquire new shares of Kia Motors and take part
in its management.  A source at Hyundai Motor told Yonhap News
Agency that a positive result will be forthcoming.


KIA MOTORS: Sets-Up Shop in Michigan
------------------------------------
Detroit News reports that Kia Motors Corp., capping its five-year  
expansion into North America, enters the competitive Michigan
marketplace this week with eight dealerships, including four in
Metro Detroit.  The slumping Korean automaker, recently acquired
at a bankruptcy auction by larger rival Hyundai Motor Co., faces
an uphill battle to win Michigan consumers loyal to domestic
brands such as Ford and Chevrolet, Detroit News says, observing
that MetroDetroit vehicle buyers also continue to shift from cars
to big trucks and sport-utility vehicles, profitable market
segments Kia doesn't participate in.

"We have to be cautious to have good, quality cars for sale in
the center of the automotive business," Woon K. Kim, president
and chief executive officer of Kia Motors America in Irvine,
California, told Detroit News.  Kia's success here will hinge on
consumer perception about the largely unknown brand, analysts and
dealers said.


KIA MOTORS: Additional W4 Trillion Debt Uncovered At Kia
--------------------------------------------------------
The ChosunIlbo reports that the Securities Supervisory Board
(SSB) announced last Wednesday following a special audit of Kia
and Asia Motors, it had uncovered an additional W4.5738 trillion
in debt missing from their books.  The SSB said that the feat had
been accomplished through the setting up of several paper
companies over the past seven years. Chungwoon and Sandon, two
major local accounting firms, had already examined the books of
the two bankrupt automakers and failed to uncover the debt. The
SSB said that the two firms would receive stiff penalties, with
two CPAs already reprimanded and suspended from their posts.

According to the SSB audit, Kia Motors incurred a net loss of
W3.3977 trillion in 1997, but managed to minimize the figure to a
loss of W382.9 billion, hiding W3 trillion in debts. Similarly,
in 1997, Asia Motors posted a net loss of W400 billion, when in
fact, a deficit of W2 trillion should have shown up in company
books.


LG SEMICON: Govt. Says it Will Call Loans Absent Hyundai Merger
---------------------------------------------------------------
The South Korean government warned that it would prohibit new
loans and demand immediate debt repayment if LG Semicon did not
comply to the consulting firm Arthur D. Little's evaluation
concluded in favour of Hyundai Electronics.  After a month-long
analysis, Arthur D. Little recommended Thursday that a merger was
the best option for Hyundai and LG and that Hyundai was more fit
to run the merged company.  The Financial Supervisory Commission
(FSC) sent an official warning that the two had to agree on who
got the 70-percent managerial control based on the ADL's
evaluation results by Christmas.

LG, which announced that it could not accept the results, citing
them as biased, would be otherwise deprived of new loans and
demanded immediate access to funds, a high-ranking FSC official
said.  LG Semicon could face bankruptcy if it failed to pay debts
reaching 10 trillion won.  (Yonhap & Asia Pulse 24-Dec-1998)

For now, the outlook for an eventual merger appears increasingly
pessimistic, as LG is adamantly determined not to give up its
semiconductor business, analysts told the Korea Herald.  LG
Semicon president Koo Bon-joon, calling the ADL report "unfair"
in a statement, hinted at an intent to seek independent survival.
LG Group Chairman Koo Bon-moo has also expressed a strong
willingness to stay in the chip business during his respective
recent meetings with President Kim and Lee Hun-jai, chairman of
the Financial Supervisory Commission.  He was even quoted as
saying, "LG is ready to sacrifice other core affiliates to keep
the chip-making affiliate afloat," the Herald related.


LG SEMICON: Creditors Agree to Stop Extending New Loans
-------------------------------------------------------
Creditors of LG Semicon yesterday agreed to stop extending fresh
loans to the memory chip maker while recalling outstanding loans
for its decision to back down from a merger deal with Hyundai
Electronics Ind. Co., according to a report appearing in the
Korea Times.  Some 28 creditor financial institutions of the LG
Group and the Hyundai Group met Monday afternoon to work out
financial sanctions against LG Semicon, the Times said, adding
that this will be the first time that creditors have ever taken
joint action against any unit of the nation's five largest
conglomerates.

Industry sources told the Times that it will be impossible for LG
Semicon to gain access to financial resources if the decision is
put into action.  Commercial Bank of Korea (CBK) and Korea
Exchange Bank (KEB), creditor banks for Hyundai and LG, said
creditor banks agreed to stop lending to LG Semicon and to
collect outstanding loans.  The two banks plan to auction off the
properties LG offered as collateral in order to retrieve their
loans to the firm if it fails to pay it debts.  "We creditors
have decided to take punitive steps against LG Semicon because
the company has refused to accept the agreed merger deal with
Hyundai," said a KEB manager.


LG SEMICON: Plans to Sue Arthur D. Little over Negative Report
--------------------------------------------------------------
LG Semicon president Koo Bon-joon announced at a press conference
that the company will file a lawsuit against US consulting firm
Arthur D. Little early in the new year.  The suit is in response
to ADL's ruling in favor of Hyundai Electronics to take
management control of a joint semiconductor company to be formed
in a "big deal" merger with LG Semicon.  In announcing the
lawsuit, Koo charged that ADL based its conclusions on erroneous
information and was consistently biased in its assessment of the
two companies. He further contended that there were no
semiconductor experts on ADL's evaluation team.  LG Group also
announced that it is currently considering additional action to
take against the ruling.


SAMSUNG PLAZA: Retailer Announces Declining Sales & Downsizing
--------------------------------------------------------------
The downtown branch of Samsung Plaza has embarked on downsizing
efforts in the face of steady declines in sales revenues.  
Samsung Plaza stores, located undergound at each of Samsung
Group's three major headquarters, said it plans to close 20
percent of its shops and increase the facilities for office
workers.  The plazas, despite huge investments, have seen sales
of less than 100 million won a day.  (Korea Times 25-Dec-1998)


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


ARAB-MALAYSIAN CORPORATION: Half-Year Financial Results
-------------------------------------------------------
Arab-Malaysian Corporation Bhd reported a post-tax loss of
RM258.506mil for the 6 months ended September 30, 1998, compared
to a post-tax profits of RM104.011mil previous.  EPS fell 348.7%
from 37.2sen to a loss per share 92.5sen during the same period.


CIU (MALAYSIA): Voluntary winding-up
------------------------------------
The members of CIU (Malaysia) Sdn Bhd on 15/12/98 resolved to
wind-up the company voluntarily.  Creditors are requested to
submit their claims before 14/1/99.


DAX FOODS: Winding-up Petition
------------------------------
Trendy Prints Sdn Bhd on 16/10/98 petitioned for the winding-up
of Dax Foods Sdn Bhd.  The petition is directed to be heard on
29/1/99.


DELTA DRIVE: Winding-up petition
--------------------------------
Hong Leong Finance Bhd on 26/11/98 petitioned for the winding-up
of Delta Drive (M) Sdn Bhd.  The petition is directed to be heard
on 22/2/99.


KILANG PAPAN: Voluntary winding-up
----------------------------------
The members of Kilang Papan Yap Bee Yan Sdn Bhd on 21/12/98
resolved to wind-up the company voluntarily.  Creditors are
requested to submit their claims before 28/1/99.


ODA HOLDINGS: Winding-up petition
---------------------------------
Public Bank Bhd on 2/9/98 petitioned for the winding-up of Oda
Holdings (Malaysia) Development Corporation Sdn Bhd.  The
petition is directed to be heard on 8/3/99.


PELANGI BHD: September 30 Operating Results
-------------------------------------------
Pelangi Bhd (listed on the KLSE) reported a post-tax loss of
RM2.56mil for the 6months ended 30/9/98, compared to a post-tax
profit of RM23.943mil previously.  EPS fell 110% from 2.5sen to a
loss per share of 0.5sen


PEMBINAAN LIMBONGAN: September 30 Operating Results
---------------------------------------------------
Pembinaan Limbongan Setia Bhd reported a post-tax loss of
RM2.507mil for the 6months ended 30/9/98, compared to a post-tax
profit of RM2.394mil previously.  EPS fell 204% from 24sen to a
loss per share of 25sen during the same period.


QUANTUM STORAGE: Voluntary winding-up
-------------------------------------
The members of Quantum Storage (Malaysia) Sdn Bhd on 24/12/98
resolved to wind-up the company voluntarily.  Creditors are
requested to submit their claims before 28/1/99.


RENONG BHD: Renong debt plan to be settled by mid-Jan
-----------------------------------------------------
A newly created arbitrator on Malaysian corporate debt issues
hopes to settle the debt restructuring of conglomerate Renong Bhd
by mid-January 1999, the Malaysian Berita Harian daily said
yesterday.  "A lot more work needs to be done but I feel we are
able to complete it soon . . . in a month's time. By mid-January,
we will try to produce something but it's still subject to the
creditor's agreement," said C Rajandram, chairman of the
Corporate Debt Restructuring Committee (CDRC).

Mr Rajandram told the Malay language paper that the debt panel
has been meeting with Renong and bank officials to complete the
restructuring.  "In normal cases, the completion process would
take two months but we have been asked to speed up this case
because it's necessary for the market and the country's economy,"
Mr Rajandram was quoted as saying.

In October, Renong said the government would issue 10.5 billion
Malaysian ringgit (S$4.6 billion) in bonds to pay for its debts.
The government would also waive an additional RM843 million in
debts belonging to a Renong group company for a few years.

The CDRC was set up by the government in August to help in the
restructuring of viable companies with debts of over RM50 million
from more than one financial institution.  Renong handed over its
debt restructuring plan to the CDRC earlier this month.

On Saturday, Renong said its bond-holders had invoked a bank
guarantee forcing the premature redemption of the bonds.
Malaysia's National Economic Action Council on Tuesday denied
the government had endorsed the restructuring, saying no bailout
had taken place.  (Reuters & Business Times 25-Dec-1998)



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

MONDRAGON INTERNATIONAL: CIBI cuts Mondragon credit rating
----------------------------------------------------------
BusinessWorld reports that, following Clark Development Corp.'s
(CDC) takeover of Mimosa Leisure Estate's assets, Mondragon
International Philippines, Inc., might not be able to pay its
394-million Philippine peso (PhP) outstanding short-term debts,
the Credit Information Bureau, Inc. (CIBI) said.  Almost one-
third of the short-term commercial papers (STCPs) will fall due
by February next year.  Mondragon issued the STCPs before its
license to issue commercial papers expired September.  "Prior to
the takeover, increased operating expenses and interest charges
on short-term loans dragged Mondragon's profitability, especially
with the tourism and leisure businesses facing bleak prospects,"
CIBI said.  As of September 30, 1998, revenues were down 21.5%
year on year, resulting in a net profit margin of 0.41%, it
added. As a result, CIBI, which evaluates the creditworthiness of
companies, has further downgraded its rating on Mondragon to CIB
6, much lower than the CIB 4 Plus rating it granted prior to the
CDC's takeover.


PHILIPPINE AIRLINES: PAL claims Cathay still keen on bailout
------------------------------------------------------------
According to the South China Morning Post, a senior Philippine
government official said yesterday that talks for bailing out
Philippine Airlines (PAL) were continuing, albeit "in secret"
with potential foreign investors, including Cathay Pacific and
Northwest Airlines.  The situation is becoming desperate for PAL,
and its survival into the new year is under question.

However, Cathay Pacific manager of corporate communications said
Cathay's position had not changed since its pulling out of
negotiations earlier this month. She said many of the company's
senior executives were away for Christmas, making it difficult to
conduct high level talks with PAL in secret.


PHILIPPINE AIRLINES: State Pension Fund May Make Investment
-----------------------------------------------------------
According to the Hong Kong Standard, Philippine state pension
fund Social Security System said it would consider an investment
of 200 million to one billion pesos in Philippine Airlines, but
only after PAL had cleaned up it balance sheet and prove that
it could be a profitable corporation.



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


VISION GROUP: Roly's VGI files bankruptcy petition
--------------------------------------------------
Vision Group International Corp, a 70 per cent subsidiary of Roly
International Holdings, has filed a voluntary petition under
Chapter 11 of the United States Bankruptcy Code.  Restructuring
of VGI is contingent upon agreement to be reached among VGI's
creditors.  Roly has made full provision on the cost of
investment and trade debts due from VGI totalling about US$1.66
million (S$2.75 million) for the financial year ending April 30,
1999.  (BusinessTimes 28-Dec-1998)


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

ALPHATEC ELECTRONICS: Why the Plan was Rejected
-----------------------------------------------
Newsbytes and the Nation said in a report this week that rather
than placing the blame on inadequate new bankruptcy provisions,
the failure of Alphatec Electronics Plc's restructuring plan,
fault rests with the inexperience of both parties negotiating
restructuring deals in an unprecedented economic environment.

In the last few critical hours before Krung Thai Bank rejected
this proposed restructuring plan, court-appointed planner John
Perrins of PriceWaterhouseCoopers told The Nation that any
subsequent failure would not result from inadequate bankruptcy
laws.  "It would be because of decision-making problems at the
local banking level," he said.

Perrins' plan called for KTB and 75 other creditors from all over
the world to take a 90 percent cut on loans of 13.06 billion baht
(US$358.59 million) in exchange for an equity contribution of
US$40 million from US insurer American International Group (AIG)
and a Swiss group, Investor AB.  In exchange for their agreement,
Atec's creditors were to also receive a 20 percent equity stake
in a newly reorganized entity, and US$35 million of the old debt
would be transferred as restructured debt to the new entity.

Perrins' deal was approved by an overwhelming majority of the 75
creditors with the exception of KTB, which is the largest
individual creditor.  "They're  owed about 4.2 billion baht
(US$115.38 million) or about 32 percent of the total loans
outstanding," he said.

KTB and another state-owned bank creditor, Union Bank, rejected
the plan.  The  nation's largest bank, Bangkok Bank, and other
privately owned local banks as well as all foreign bank creditors
voted for acceptance of Perrins' restructuring plan.  It is not,
the news sources indicate, axiomatic that because privately
controlled banks such as Bangkok Bank had readily accepted the 90
percent write off, KTB and Union Bank, both state-owned banks,
were also in a position to accept a 90 percent write-off of their
Atec loans.  Disregarding the political implications of a state-
owned bank using taxpayers' money to bail out an allegedly
fraudulent bankrupt operation, the investors' advisers may have
wrongly assumed that KTB and Union Bank had made 100 percent
provisions as required for Atec loans, depending on how
current Bank of Thailand regulations are interpreted.  Despite
the fact that BOT regulations require Thai banks to provide  
reserves of 100 percent for delinquent loans of more than one
year, the BOT is in separate policy statements allowing Thai
financial institutions until 2000 to comply fully with the
regulations, the news sources report.  Operating without a clear
understanding of KTB and Union Bank's write-off position, the
investors were unable to put together an offer which would
alleviate KTB and Union Bank's concerns, the news reports
suggest.


THAI FARMERS: Bank may issue additional shares
----------------------------------------------
Thai Farmers Bank plc president Banthoon Lamsam said the bank may
issue new common shares if necessary to cover any shortfall in
subscriptions to its recently announced bond issues.  The Bangkok
Post quoted Mr Banthoon as saying it will not be a significant
problem for the bank if the planned issue of 40 billion baht
(S$1.8 billion) of debt-linked instruments and subordinated debt
is not fully subscribed.  (AFX-Asia & Business Times)



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