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/raid1/www/Hosts/bankrupt/TCRAP_Public/990105.MBXT 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *