TCRAP_Public/990105.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, January 5, 1999, Vol. 2, No. 2

                    Headlines


* C H I N A   &   H O N G   K O N G *

ASIA GROUP: Store closure serves warning of bubbles ahead
LAI SUN DEVELOPMENT: Lai Sun Hotels in ramping claim
LAI SUN DEVELOPMENT: Lai Sun to lower price of NY hotel


* J A P A N *

AOBA LIFE: Artemis in talks to acquire insurer
NISSAN MOTOR: Report of merger talks


* K O R E A *

DAEWOO: Debt reduction plans summarized
HYUNDAI: Debt reduction plans summarized
HYUNDAI ELECTRONICS: FKI to mediate merger dispute
HYUNDAI MOTOR: Falsified financial reports for 1997
KOREA FIRST BANK: HSBC's bid would have meant huge losses

KOREA FIRST BANK: Newbridge likely to reduce large loans
LG: Debt reduction plans summarized
LG SEMICON: FKI to mediate merger dispute
LINE HOUSING CO: Starts creditor reconciliation
SK: Debt reduction plans summarized

SAMSUNG: Debt reduction plans summarized
SEOULBANK: Controlling stake may go to HSBC


* M A L A Y S I A *

ALPHALUX ENTERPRISE SDN BHD: Winding-up petition
DPC ENERGY SDN BHD: Voluntary winding-up
FARIPH CORPORATION (M) SDN BHD: Winding-up petition
JI-MART CASH & CARRY DISTRIBUTION: Winding-up petition
KAMUNTING CORP BHD: Results - 30/9/98

KIARA EMAS ASIS INDUSTRIES BHD: Results - 30/9/98
KUALA LUMPUR INDUSTRIES HOLDING BHD: Results - 30/9/98
LEONG HUP HOLDINGS BHD: Results - 30/9/98
LIM SANG HOLDINGS SDN BHD: Winding-up petition
UNITED ESTATES INDUSTRIES SDN BHD: Voluntary winding-up

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

PHILIPPINE LONG DISTANCE: Southbell to take stake


* S I N G A P O R E *

CAM INTERNATIONAL: Posts lower losses of $11.9m in FY98
CASA HOLDINGS: Net profit shrinks 93% to $235,000
PACIFIC CAN: Plans 80% capital reduction, 2-for-1 rights
SOUTHGATE PTE: SPP to wind up Southgate unit
URACO HOLDINGS: Makes further provision of $1.5m


* T H A I L A N D *

DATAMAT PCL: Progress on rehabilitation plan


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

ASIA GROUP: Store closure serves warning of bubbles ahead
---------------------------------------------------------
According to the South China Morning Post, the Asia Group
in Zhengzhou, the capital of Henan province, had a
department store in Beijing closed on Christmas Day. The
Beijing store was opened only in 1996. Its closure left a
trail of creditors and 500 staff unpaid for three months,
complaining that profits made by the store had been
siphoned off and invested elsewhere.

In November, four managers of another Asia Group store in
Beijing were detained by police for 15 days after they used
money to pay wages instead of giving it to 102 creditors as
ordered by a court.

The group was started in 1988 by a property company and a
leasing firm under the Construction Bank. It has debts
worth more than its assets and faces a string of lawsuits
for repayment of debt. One of its founders, Jin Ye, has
gone to the United States.

It invested 34 million yuan in the 10,000 square metre Asia
Plaza in a prime site in Zhengzhou which opened on May 6,
1989. It posted sales of 180 million yuan in 1990 and 230
million in 1991. In September 1993, the group turned itself
into a stock-holding company and transferred majority
ownership to four new shareholders, three companies from
Hainan and one from Guangxi.

It embarked on a rapid expansion, investing a billion yuan
in stores in four cities in Henan. It financed this with
only 15 per cent of its own funds, 60 per cent from bank
loans, 10 per cent from staff who had to pay between 5,000
and 6,000 yuan for a job in the stores, and the rest
borrowed from suppliers. The four cities have smaller
populations than Zhengzhou, with lower spending power,
leading to suspicions the group chose them for rewards such
as kickbacks by the construction firms involved, paid to
its top officials rather than for good commercial reasons.
Two of the four stores closed in 1997.

It also acquired four department stores in Guangzhou,
Tianjin and Beijing. Staff in Guangzhou disliked the
management so much that they resigned en masse and the
group had to rush 1,000 staff from Zhengzhou to run the
operation.

In September 1997, the group removed its general manager,
Wang Suizhou, and launched an investigation into his
financial management.

By March 1998, the group had debts of 615 million yuan,
equal to more than 150 per cent of its assets. Asia Plaza
alone owes 130 million yuan to its suppliers, 76 million to
its banks and 10 million to its staff.

Despite the group's financial and management disaster, the
Henan provincial government did not declare the group
bankrupt, but ordered the creditor banks not to go to court
to seek repayment and to continue providing working
capital. It also told the courts to go slowly in handling
claims for debts owed by its stores in Henan.

Economists blamed the failure of Asia Group on too rapid
expansion, poor management and ill-disciplined lending by
its banks.


LAI SUN DEVELOPMENT: Lai Sun Hotels in ramping claim
----------------------------------------------------
According to the South China Morning Post, a listed arm of
Lai Sun Development -- Lai Sun Hotels -- has been accused
in a lawsuit of trying to ramp the price of its 49.99 per
cent stake in Four Seasons Hotel in New York.

American Realty Trust, a property company controlled by
Dallas real estate operator Gene Phillips, contends in a
lawsuit it made a US$2 million down payment and signed a
letter of intent in October to buy the entire Four Seasons
for US$270 million, US$80 million more than Lai Sun and
other parties paid for it in 1996. It is seeking US$ in
damages and an injunction barring Lai Sun from selling the
hotel to anyone else.

The lawsuit says that Lai Sun fraudulently used the offer
"as a stalking horse to generate other offers for the
hotel." Real estate executives and bidders said that in
November and last month at least three other investment
groups reviewed financial documents of The Four Seasons and
were interested in buying the hotel. It is understood Lai
Sun received an offer of at least US$400 million for the
hotel, more than doubling its acquisition price.

American Realty claimed in the lawsuit that, in response to
complaints, Lai Sun promised to abide by the preliminary
deal but demanded an additional US$15 million down payment,
which American Realty rejected.

Several real estate bankers complained that American Realty
tied up the hotel and then tried unsuccessfully to secure
financing for the acquisition.

Lai Sun owns its stake in Four Seasons Hotel through a
complex web of foreign companies. The other owners are also
based in Hong Kong and real estate executives said that
each one has tried to tinker with the deal to sell the
hotel.

Hotel analysts contend that the longer it takes to sell the
hotel, the less money Lai Sun will make on the deal, with
the decline in the market in New York since spring.

Lai Sun has been forced to sell the Four Seasons, as well
as the Beverly Wilshire Hotel in Los Angeles, in order to
reduce debt. It hopes to raise HK$3 billion from hotel and
property sales in an attempt to cut debts to HK$7 billion
within a year. It has been selling assets since the start
of last year but its gearing is still at 50 per cent and it
has debts of HK$10 billion of which HK$1.8 billion has to
be repaid this year.

Lai Sun's scheduled sales this year include a joint-venture
residential project at the first phase of the airport
railway's Kowloon Station and a residential project in Yuen
Long.


LAI SUN DEVELOPMENT: Lai Sun to lower price of NY hotel
-------------------------------------------------------
According to the Hong Kong Standard, Lai Sun Hotels
International is lowering the asking price for the New York
Four Seasons Hotel from US$400 million to US$300 million,
and is now in talks with three interested parties,
including Philips, a property investment and development
company in Texas, the New York Post reported.

The Four Seasons Hotel was bought for US$192 million by a
consortium led by Lai Sun in 1996. The hotel acquired
another year of spectacular growth. Occupancy was
maintained at a high level of 82.4 per cent for the first
half of 1998 and 78.8 per cent for 1997.


=========
J A P A N  
=========

AOBA LIFE: Artemis in talks to acquire insurer
----------------------------------------------
The Financial Times reports Artemis, the holding company of
the Printemps retailing group based in France, is in
advanced talks to acquire Japan's Aoba Life Insurance,
Japanese press reports said yesterday.

Artemis is understood to have offered a purchase price for
Aoba of Y40bn to Y50bn. If the deal goes through, it would
represent another significant foreign entry into Japan's
hitherto highly protected life insurance sector.

Aoba was set up by Japan's life insurance association
companies to take over the operations of Nissan Life
Insurance, which collapsed in 1997.

The life insurance association has been seeking a buyer for
Aoba and is expected to make a decision shortly for
approval at its board meeting later this month.


NISSAN MOTOR: Report of merger talks
------------------------------------
Bloomberg reports shares of Nissan Motor Corp. rose 4 yen
to 350. Japan's No. 2 automaker, is in merger talks with
three rivals, DaimlerChrysler AG, Renault SA, and Ford
Motor Co., and may announce a partner at the end of the
month, the Observer reported, citing sources close to the
company. Renault declined comment on the report.


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

DAEWOO: Debt reduction plans summarized
---------------------------------------
A special New Year's Day section of the Korea Times
summarized the debt reduction plans that five largest
family owned conglomerates (or chaebols).  These plans
involve government mandated agreements with the chaebols
creditor banks.

The Daewoo Group is in a mandatory financial improvement
agreement with the Korea First Bank to reduce its debt-
equity ratio to 196 percent by the end of 1999, and cut it
further to 178 percent by the end of the year 2000.


HYUNDAI: Debt reduction plans summarized
----------------------------------------
A special New Year's Day section of the Korea Times
summarized the debt reduction plans that five largest
family owned conglomerates (or chaebols).  These plans
involve government mandated agreements with the chaebols
creditor banks.

The Hyundai Group projects that it will reduce its debt-
equity ratio from 508.1 percent as of last June to 196
percent by the end of 1999, and to cut it further to 177.6
percent by the end of the year 2000.


HYUNDAI ELECTRONICS: FKI to mediate merger dispute
--------------------------------------------------
The Digital ChosunIlbo reports the Federation of Korean
Industries (FKI) will play the role of mediator in the
high-profile merger dispute between Hyundai Electronics and
LG Semicon. FKI Chairman Kim Woo-choong said Tuesday that a
vice-chairman of the FKI would meet with the heads of the
restructuring offices of both firms and consult on a method
to push the semiconductor merger through. Kim noted that
the findings of the Arthur D. Little (ADL) report are now
available, adding that if there is any dissatisfaction with
the evaluation process, then more time must be given so
that a second evaluation can begin. This suggests that the
negotiations for the merger could continue into early next
year.

LG Semicon had vehemently objected to the ADL report, which
concluded that Hyundai Electronics should be awarded the
lion's share of management rights. One high-ranking FKI
official said that the organization is proposing an
alternative to the originally proposed allotment of a 7:3
share ratio in the new merged entity to either 6:4 or
5.5:4.5.


HYUNDAI MOTOR: Falsified financial reports for 1997
---------------------------------------------------
The Digital ChosunIlbo reports ten large corporations,
including Hyundai Motor, were found to have falsified their
financial audit reports for the year 1997, and were
reprimanded and punished by the Security Supervisory Board.
Seven certified public accounting firms who performed the
audits were also given warnings.

The board said that in the case of Hyundai Motor, the
company was reprimanded because it shortchanged the
reported amount of short-term loans and other credit
arrangements by W163.8 billion in its audited report, which
was then approved by the public CPA.


KOREA FIRST BANK: HSBC's bid would have meant huge losses
---------------------------------------------------------
According to the Hong Kong Standard, a Korea First Bank
official in Hong Kong said British banking giant HSBC
Holdings was turned down in the Korea First Bank bid
because the government would have suffered huge losses by
meeting HSBC's demands for an approximately 80 per cent
stake in the bank. A Korean government official said HSBC
scaled down its bid to 51 per cent at the last minute, but
the concession was not satisfactory as HSBC insisted on the
right to purchase half the remaining 49 per cent from the
government a year later.

US investment consortium Newbridge Capital won the bid to
take a 51 per cent stake in the debt-heavy bank under the
terms of a memorandum of understanding signed on Thursday
with the South Korean government.

Both Korea First Bank and SeoulBank were bailed out last
year, and Korea is obliged to sell the two banks as a
condition of an International Monetary Fund rescue package.

Newbridge Capital managing director Weijian Shan said the
choice was difficult between Korea First Bank and SeoulBank
because the two banks are so similar in structure.


KOREA FIRST BANK: Newbridge likely to reduce large loans
--------------------------------------------------------
The Digital ChosunIlbo reports Newbridge-GE Capital, the
U.S. consortium which has agreed to purchase Korea First
Bank (KFB), has given strong indication that it will reduce
its loans to large businesses in Korea, including those to
the nation's big five conglomerates. One high-ranking
official at the Financial Supervisory Commission (FSC) said
Saturday that Newbridge-GE Capital has more stringent in-
house guidelines which limit large-scale loans to
businesses. The official added that there would be no
sudden calling in of loans, but said that the consortium is
very much likely to deal strictly with non-performing
loans.

The official added that the memorandum of understanding
(MOU) contains a clause which stipulates that the five
largest business groups must be dealt with equally in the
granting of loans. Newbridge-GE Capital plans to dispatch a
team led by a former chairman of a major commercial U.S.
bank to carry out an in-depth assessment of KFB in
preparation for the take over. The delegation is scheduled
to complete and unveil a plan for rebuilding KFB by the end
of this month.


LG: Debt reduction plans summarized
-----------------------------------
A special New Year's Day section of the Korea Times
summarized the debt reduction plans that five largest
family owned conglomerates (or chaebols).  These plans
involve government mandated agreements with the chaebols
creditor banks.

The LG Group is in a mandatory financial improvement
agreement with the Commerce Bank of Korea to reduce its
debt-equity ratio from 364 percent to 196 percent by the
end of 1999, and cut it further to 186.4 percent by the
end of the year 2000.


LG SEMICON: FKI to mediate merger dispute
-----------------------------------------
The Digital ChosunIlbo reports the Federation of Korean
Industries (FKI) will play the role of mediator in the
high-profile merger dispute between Hyundai Electronics and
LG Semicon. FKI Chairman Kim Woo-choong said Tuesday that a
vice-chairman of the FKI would meet with the heads of the
restructuring offices of both firms and consult on a method
to push the semiconductor merger through. Kim noted that
the findings of the Arthur D. Little (ADL) report are now
available, adding that if there is any dissatisfaction with
the evaluation process, then more time must be given so
that a second evaluation can begin. This suggests that the
negotiations for the merger could continue into early next
year.

LG Semicon had vehemently objected to the ADL report, which
concluded that Hyundai Electronics should be awarded the
lion's share of management rights. One high-ranking FKI
official said that the organization is proposing an
alternative to the originally proposed allotment of a 7:3
share ratio in the new merged entity to either 6:4 or
5.5:4.5.


LINE HOUSING CO: Starts creditor reconciliation
-----------------------------------------------
The Kwangju District Court advertised in the Korean
language Maeil Kyungje that the Line Housing Company has
started its creditor reconciliation procedure. Creditors
have until February 18, 1999 to file their claims. The
company's address is 491-5 Anpyong-ri Muchong-myon,
Tamyang-gun, Chonnam, and the president is Mr. Kong Byong-
gon.


SK: Debt reduction plans summarized
-----------------------------------
A special New Year's Day section of the Korea Times
summarized the debt reduction plans that five largest
family owned conglomerates (or chaebols).  These plans
involve government mandated agreements with the chaebols
creditor banks.

The SK Group is in a mandatory financial improvement
agreement with the Korea First Bank to reduce its debt-
equity ratio to 199 percent by the end of 1999, and cut it
further to 163 percent by the end of the year 2002.


SAMSUNG: Debt reduction plans summarized
----------------------------------------
A special New Year's Day section of the Korea Times
summarized the debt reduction plans that five largest
family owned conglomerates (or chaebols).  These plans
involve government mandated agreements with the chaebols
creditor banks.

The Samsung Group is in a mandatory financial improvement
agreement with the Hanil Bank to reduce its debt-equity
ratio to 184 percent by the end of 1999, and cut it further
to 100 percent by the end of the year 2000.


SEOULBANK: Controlling stake may go to HSBC
-------------------------------------------
According to the Hong Kong Standard, a representative of
debt-strapped SeoulBank of South Korea said the Korean
government could offer British banking giant HSBC Holdings
a relatively large controlling stake in SeoulBank exceeding
51 per cent in a bid to improve the credibility of the
country's banking system. SeoulBank's Mr Kiyeol said HSBC
is favourite to acquire the bank, which provides a
commercial and trust banking services to customers
globally.

The government plans to conclude talks with foreign
financial institutions by the end of January for the sale
of SeoulBank, said Lee Hun Jai, chairman of the Financial
Supervisory Commission.

Mr Kiyeol said UK-based Citibank had also expressed an
interest in SeoulBank several months ago.

Both Korea First Bank and SeoulBank were bailed out last
year, and Korea is obliged to sell the two banks as a
condition of an International Monetary Fund rescue package.

Newbridge Capital managing director Weijian Shan said the
choice was difficult between Korea First Bank and SeoulBank
because the two banks are so similar in structure.


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

ALPHALUX ENTERPRISE SDN BHD: Winding-up petition
------------------------------------------------
Megalux Lightings Sdn Bhd on 8/12/98 petitioned for the
winding-up of Alphalux Enterprise Sdn Bhd.


DPC ENERGY SDN BHD: Voluntary winding-up
----------------------------------------
The members of DPC Energy Sdn Bhd on 30/12/98 resolved to
wind-up the company voluntarily.


FARIPH CORPORATION (M) SDN BHD: Winding-up petition
---------------------------------------------------
London & Pacific Insurance Company Bhd on 30/11/98
petitioned for the winding-up of Fariph Corporation (M) Sdn
Bhd. The petition is directed to be heard on 27/1/99.


JI-MART CASH & CARRY DISTRIBUTION: Winding-up petition
------------------------------------------------------
Toshiba Sales & Services Sdn Bhd on 30/11/98 petitioned for
the winding-up of Ji-Mart Cash & Carry Distribution Sdn
Bhd. The petition is directed to be heard on 27/1/99.


KAMUNTING CORP BHD: Results - 30/9/98
-------------------------------------
Kamunting Corp Bhd (listed on the KLSE) posted a group pre-
tax loss of RM25.964mil for the 6months ended 30/9/98,
compared to a pre-tax profit of RM69.184mil previously.


KIARA EMAS ASIS INDUSTRIES BHD: Results - 30/9/98
-------------------------------------------------
Kiara Emas Asis Industries Bhd (listed on the KLSE) posted
a group pre-tax loss of RM4.815mil for the half year ended
30/9/98, compared to a pre-tax profit of RM6.658mil
previously.


KUALA LUMPUR INDUSTRIES HOLDING BHD: Results - 30/9/98
-------------------------------------------------------
Kuala Lumpur Industries Holding Bhd (KLIH) (listed on the
KLSE) reported a group pre-tax loss of RM107.24mil for the
6months ended 30/9/98, compared with a loss of RM62.59mil
previously.

The losses were attributed to the adverse economic
situation.

KLIH which is under court protection against creditors'
action (S. 176), would be undergoing a corporate
restructuring and the continuity of the business shall
depend upon this scheme.

The shares of this company has been suspended since its
first announcement of the S. 176 scheme.


LEONG HUP HOLDINGS BHD: Results - 30/9/98
-----------------------------------------
Leong Hup Holdings Bhd (listed on the KLSE) reported a
group pre-tax loss of RM13.931mil for the 6months ended
30/9/98, compared to a loss of RM25.464mil previously.


LIM SANG HOLDINGS SDN BHD: Winding-up petition
----------------------------------------------
Public Bank Bhd on 25/11/98 petitioned for the winding-up
of Lim Sang Holdings Sdn Bhd. The petition is directed to
be heard on 23/2/99.


UNITED ESTATES INDUSTRIES SDN BHD: Voluntary winding-up
-------------------------------------------------------
The members of United Estates Industries Sdn Bhd on
31/12/98 resolved to wind-up the company voluntarily.
Creditors are requested to submit their claims before
3/2/99.


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

PHILIPPINE LONG DISTANCE: Southbell to take stake
-------------------------------------------------
RP-Business News and PNA report US-based Southwestern
(Southbell) plans to acquire at least 15 percent of the
dominant Philippine Long Distance Telephone Company (PLDT).

This was disclosed by PLDT senior vice president for
Corporate Affairs Antonio R. Samson saying "for the company
to survive, it needs strategic partners in major foreign
destinations such as the United States and Japan."

Samson said that Nippon Telephone and Telegraph Co. (NTT)
also expressed plans to invest in the telecommunications
company.

Samson said Southbell is looking at a significant minority
stake in PLDT like what it did in Korea and other  
countries. He did not specify how much. He said that part
of the capital infusion will be used to reduce PLDT's
foreign debt amounting to P115 billion. He added that
Southbell considers the Philippines as an important
market since Filipinos are its number one customer.

Southbell, which recently acquired Pacific Bell, operates
in the entire West Coast including California, where most
Filipinos live.

Meanwhile NTT has already indicated its intention to come
into PLDT since it is already a major foreign partner of
Smart where Metro Pacific Holdings Corp. also has a
sizeable share.


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

CAM INTERNATIONAL: Posts lower losses of $11.9m in FY98
-------------------------------------------------------
Singapore Business Times reports CAM International Holdings
-- which remains suspended since April 1997 -- saw lower
losses of $11.9 million for the year ended September, a 25
per cent improvement from previously.

Barring "unforeseen circumstances", CAM expects better
results in the current year, it said in a statement late
last week. Although product margins expect to see continued
pressures, CAM said that after a "very soft" second-half in
its last fiscal year, the electronics sector shows signs of
recovery.

"Interest costs continue to be the major concern of our
business," the cash-strapped company said, however. "There
is a strong need to correct the current gearing ratios by
way of raising new capital so as to achieve better results
for the group." Interest costs during the year came to $5.8
million.

Finance Minister Richard Hu has said before that CAM's
shares could resume trading only after the company proved
it had sufficient working capital to continue as a going
concern.

For the year ended September, CAM's turnover fell 48 per
cent to $50.3 million. Although the net losses of $11.9
million was better than fiscal year 1997's $15.9 million,
CAM said it continued to bleed red ink due to significantly
lower regional demand for data storage products.

Trading in CAM has been suspended since April 1997 due to
the surfacing of questionable transactions. Its former
chairman Raymond Chew Chuan Seng and ex-auditor Cheong Khee
San were sentenced to jail in August, but both said they
would appeal against the sentence.


CASA HOLDINGS: Net profit shrinks 93% to $235,000
-------------------------------------------------
Singapore Business Times says mainboard-listed consumer
goods trader Casa Holdings saw a whopping 93 per cent drop
in net profit to $235,000 for the year ended September.
This came on the back of a 37 per cent fall in turnover to
$73 million, as well as heavy foreign exchange losses and
provisions for doubtful debts, Casa said over the weekend.

But due to a divestment of interest in an associate firm
Fiamma Holdings Bhd from 45 per cent to 30 per cent, there
was a gain of $2.4 million.

This propped up Casa's net earnings after extraordinaries
to $2.7 million, only 15 per cent less than a year ago.

Casa said its fall in turnover was due to trading cutbacks
in countries seriously hit by the crisis and reduced
contribution from Malaysia. It added that the second half
was profitable and managed to cover the first half's
losses.

Casa said, however, that it is difficult to estimate the
current year's performance as the environment remains
uncertain. But it will continue to grow revenue by
exploiting new markets.


PACIFIC CAN: Plans 80% capital reduction, 2-for-1 rights
--------------------------------------------------------
Pacific Can Investment Holdings, which has chalked up a
fifth year of losses, is planning a capital reduction
exercise which will knock off 80 per cent of its share
capital and allow it to write off 96 per cent of its
accumulated losses. Singapore Business Times says the can-
making group wants to cut the par value of its shares from
50 cents to 10 cents, wiping off its share capital from
$44.6 million to $8.9 million. Its accumulated loss will be
whittled down from $37 million to a mere $1.3 million.

The group announced the exercise on Dec 31, the same day it
reported an $8.3 million full-year net loss, a 38 per cent
improvement from the year before.

Following the exercise, Pac Can is proposing a two-for-one
rights issue at 13 cents per rights share with par value of
10 cents.

Estimated net proceeds of $22.7 million will be used to
redeem $20.6 million in unsecured loan stock plus $200,000
in interest, and for working capital.

As of Dec 30, Pac Can had 89.2 million ordinary shares,
20.7 million warrants expiring in April 1999, and 1.2
million employee share options. The rights issue will
result in the issue of some 178.5 million rights shares.

Pac Can has also received an undertaking from major
shareholder KZ Investments to subscribe or procure
subscribers for its 14.7 per cent share of the rights
issue. Pac Can director and shareholder Low Hua Kin, acting
in concert with KZ Investments, has made a similar
undertaking for his 3.7 per cent share of the rights issue.


SOUTHGATE PTE: SPP to wind up Southgate unit
--------------------------------------------
SPP Ltd said it will voluntarily wind up wholly-owned
Southgate Pte Ltd, following a special resolution passed.
Lim Say Wan has been appointed the liquidator to conduct
the proceedings.


URACO HOLDINGS: Makes further provision of $1.5m
------------------------------------------------
Singapore Business Times reports Uraco Holdings said
subsequent to the recent announcement of its full-year
results, it has made further provision for doubtful debts
of $1.46 million. This was because a customer filed for
Chapter 11 of the US bankruptcy code, and at the same time
signed a letter of intent with a potential buyer for its
assets. As a result of this extra provision, Uraco's net
loss before minority interests for the year ended July 1998
is $15.1 million.


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

DATAMAT PCL: Progress on rehabilitation plan
--------------------------------------------
Datamat PCL and AST have submitted the preliminary debt-
restructuring plan to the creditors since September 1998,
In the meantime, the company has been negotiated and
considered several conditions with strategic investors. We
expect that the negotiation will finish within the first
quarter of the year 1999. Then, the company and AST will
prepare the debt-restructuring plan, which includes the
strategic investor in order to negotiate with the
creditors.

Therefore, the company and AST would like to request a
waiver from the Stock Exchange of Thailand regarding an
extension for another 6 months (within June 30, 1999) in
developing the rehabilitation plan. A progress report of
the mentioned plan will be gradually informed to SET.


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 1999.  All rights reserved.  ISSN: 1520-9482.  

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            * * * End of Transmission * * *