TCRAP_Public/990108.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      

      Friday, January 8, 1999, Vol. 2, No. 5

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS: VCD provisions pull Albatronics into the red
GUANGDONG ENTERPRISES: S&P lowers debt ratings
GUANGDONG INTERNATIONAL: Liquidators to meet with creditors
HAINAN DADONGHAI TOURISM: Hotelier swaps debt for stake
HARBOUR RICH (PROPERTY) LIMITED: Meeting of creditors

SIU-FUNG CERAMICS: Seeks creditor reprieve
TIME RICH (HK) LIMITED: Notice of meeting of creditors
UDL HOLDINGS: Subsidiary in $66m suit
WIN HOPE TRANSPORTATION: Winding-up petition


* J A P A N *

NISSAN MOTOR: Nissan sells textile business
YOKOHAMA RUBBER: JRII cuts long term debt rating


* K O R E A *

CHUNGBUK BANK: Needs more capital to stay solvent
HANGUK CABLE TV: Completes creditor reconciliation
HYUNDAI ELECTRONICS: Sharp differences remain on price
LG SEMICON: Sharp differences remain on price of deal
MIJU COMPANIES: Four affiliates become workout targets

SHINWON TELECOM: Completes creditor reconciliation


* M A L A Y S I A *

MBF CAPITAL: Given time to find funds for finance unit
RENONG: Turns to toll road unit to sell RM8.5b bonds


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

ASKAR LTD: Boulevard unit to restructure $5.4-M loan
PHILIPPINE AIRLINES: Japanese creditor rejects debt plan


* S I N G A P O R E *

PACIFIC CAN: SIC waives Pac Can share takeover
SONICA: Fu Yu denies it has lost case against Sonica


* T H A I L A N D *

SIAM COMMERCIAL BANK: Breaks ground with $355m deal on debt
TELECOMASIA: Bangkok Bank takes stake as debt repayment


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

ALBATRONICS: VCD provisions pull Albatronics into the red
---------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, huge provisions for discontinuation of video
compact disc products and doubtful receivables saw
Albatronics (Far East) incur an attributable loss of $309.6
million for the six months to September. Turnover was $1.19
billion. The loss per share was $1.54. No interim dividend
will be paid.

According to the Hong Kong Standard, exceptional items of
$163.53 million included a $131 million write-off for its
VCD operations and a $9.78 million loss for development
costs written off.

Last November, the company said it had incurred an
unaudited operating loss of $240 million for the five
months to August 31, 1998, including the $131 million loss
provision on its VCD operations.

The interim results were delayed until yesterday because
the auditors were still conducting a review, taking into
account the unaudited five-month results ending August 31,
1998. Under the Listing Agreement, the company should have
published an interim report by no later than the end of
last year.


GUANGDONG ENTERPRISES: S&P lowers debt ratings
----------------------------------------------
The Asian Wall Street Journal reports that Standard &
Poor's Ratings Group has lowered the corporate credit
rating and the senior unsecured debt of Guangdong
Enterprises (Holdings) Ltd. from CCC+ to CCC-. This action
was reportedly due to Guangdong Enterprises' plan to
suspend some debt payments.  

On Tuesday, the financial adviser to the Guangdong
provincial government proposed that Guangdong Enterprises
(Holdings) Ltd. and some of its group companies suspend
principal payments on debt until April 15 while it
undergoes a restructuring.

The article stated that S&P said that Guangdong Enterprises
has a total debt of $2.8 billion as of last June, and due
to its heavy borrowing, it is having difficulties
negotiating with its creditors. Failure to conclude an
agreement on its debts would result in defaults on unrated
debts, that would then trigger cross defaults on rated
issues.  

Guangdong Enterprises is the Guangdong provincial
government's investment arm. Another investment branch of
the Guangdong provincial government, Guangdong
International Trust & Investment Corporation (GITIC), was
shut down on October 6 because of its inability to pay
maturing debt obligations.


GUANGDONG INTERNATIONAL: Liquidators to meet with creditors
-----------------------------------------------------------
The Asian Wall Street Journal reported the liquidators of
the failed Guangdong International Trust & Investment
Corporation (GITIC) are set to meet with its creditors on
Sunday to decide how debts should be settled.

The meeting will be in Guangzhow, the Guangdong provincial
capital where GITIC is based. This gathering follows a 90-
day period provided to creditors to register their claims.

GITIC was the official the investment arm of the Guangdong
government, and the second largest such institution in
China. GITIC obtained loans and issued bonds overseas to
finance local projects, but also used its funds in stock
and property deals that went bad. It was closed by the
Chinese government on October 6, after it was unable to
meet foreign and domestic debt obligations.


HAINAN DADONGHAI TOURISM: Hotelier swaps debt for stake
-------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, hotelier Hainan Dadonghai Tourism Centre
(Holdings) said it had repaid some debt owed to the
Agricultural Bank of China with a 29.18 per cent stake in
the company. The listed company's corporate parent,
Dadonghai Tourism Centre, had transferred 106.23 million
state shares priced at 1.41 yuan each, to the bank's Sanya
city branch, the Securities Times reported.

The branch would place the shares in the care of subsidiary
real estate firm Yinnong Industry Development, making it
Dadonghai's largest shareholder. Yinnong had agreed not to
sell the shares for one year.

According to the Hong Kong Standard, in China banks are
forbidden by law from directly owning publicly traded
stocks.


HARBOUR RICH (PROPERTY) LIMITED: Meeting of creditors
-----------------------------------------------------
A meeting of creditors of Harbour Rich (Property) Limited
will be held on Feb 10 at 11:00 am at Unit C, 17th Floor,
Thomson Commercial Building, 8-10 Thomson Road, Wanchai,
Hong Kong for the purposes mentioned in sections
241,242,243 and 244 of the Hong Kong Companies Ordinance
(Chapter 32).


SIU-FUNG CERAMICS: Seeks creditor reprieve
------------------------------------------
According to the South China Morning Post, troubled Siu-
Fung Ceramics Holdings has applied to the stock exchange to
resume trading of its shares today, but is still awaiting a
response from its creditors on a renewed rescue proposal it
submitted in mid-December. Trading in the company's shares
has been suspended since October 1996. The company could
still be forced into liquidation if negotiations with its
creditors fail.

Yesterday the firm said it owed $2.3 billion to a
consortium of banks and note-holders as of December 31. No
interest had been accrued since November 1996. Of this
indebtedness, $193 million was secured by its own office
premises and $317 million was guaranteed by chairman
Siegfried Lee Siu-fung, who has a 54.11 per cent interest
in the company.

Contigent liabilities amounting to $1 billion were incurred
by the end of last year.

As of June 30 last year, the company's net asset value was
$73.7 million, or 5.13 cents a share.

Seventeen banks in Hong Kong and the mainland had served
demand letters to the company for repayment of $2.1
billion.

The firm submitted a renewed debt restructuring plan on
December 15. The consortium of banks is still evaluating
the proposal.


TIME RICH (HK) LIMITED: Notice of meeting of creditors
------------------------------------------------------
A meeting of creditors of Time Rich (Hong Kong) Limited
will be held on Jan 12, 1999 at 10:30 am at 2nd Floor, Shui
On Centre, 6-8 Harbour Road, Wanchai, Hong Kong to appoint  
a liquidator and to consider further matters relevant to
creditors' voluntary winding-up.


UDL HOLDINGS: Subsidiary in $66m suit
-------------------------------------
According to the South China Morning Post, cash-strapped
UDL Holdings was struck a further blow yesterday with a
lawsuit filed against a subsidiary -- UDL Kenworth -- by
the Bank of East Asia claiming HK$66 million resulting from
an unpaid principal loan sum of US$6.5 million, interest of
US$300,000 and a further sum of HK$13.3 million.

UDL will attempt to convince a judge on Monday that it can
pay off creditors seeking to wind it up.

UDL Holdings and subsidiary Kenworth reported a joint
HK$2.05 billion attributable loss in the year to March 31.
Kenworth suffered a HK$560 million attributable loss
compared with a HK$52 million profit the previous year.


WIN HOPE TRANSPORTATION: Winding-up petition
--------------------------------------------
A petition for the winding up of Win Hope Transportation
Company Limited was presented to the High Court on  Dec 15,
1998 by Chan Wai Sun formerly known as Chan Yue Kwan of  
Room 1402, Hing Shing House, Tai Hing Estate, Tuen Mun, New
Territories, and the said petition is directed to be heard
before the court at 9:30 a.m. on  Jan 27, 1999, and any
creditor or contributory of the said  company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


=========
J A P A N  
=========

NISSAN MOTOR: Nissan sells textile business
-------------------------------------------
Agence France-Presse and Business Day (Thailand) report
Japan's carmaker Nissan Motor Co. Ltd. said yesterday it
had agreed to sell the majority of its textile machine
operations to the largest shareholder of its rival Toyota
Motor Corp.

"The parties signed a basic agreement today and will
conclude the agreement for the transfer in early February,"
Nissan said. "The actual transfer will take place in
April."

Nissan is selling the water jet textile machinery business
to Toyoda Automatic Loom Works Ltd., which holds five
percent of Toyota Motor.

The deal, for which no price was given, is a rare agreement
between the two rivals and signals attempts by the troubled
Nissan to cut back by offloading minor businesses. It has
already sold off its publishing and advertising operations.

"Nissan will step up its ongoing initiative of running
business operations by focusing resources on selected
areas."


YOKOHAMA RUBBER: JRII cuts long term debt rating
------------------------------------------------
The Asian Wall Street Journal reported that the Yokohama
Rubber Company's long-term debt rating was cut by Japan
Rating & Investment Information Inc. (R&I). The company's
commercial paper ratings were also reduced from A-1 to A-2.  
This rating change affects around 30 billion yen of the
company's unsecured straight bonds and 30 billion yen of
the company's commercial paper.  

R&I referred to the slump in the domestic demand plus
intensified competition within the tire industry as
contributing to this rating's change.


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

CHUNGBUK BANK: Needs more capital to stay solvent
-------------------------------------------------
The Korea Herald reported that the Financial Supervisory
Commission (FSC) has stated that Chungbuk Bank must develop
a feasible plan for recapitalizing 200 billion won by
January 15 in order for it to stay solvent. Tough measures
were threatened by the FSC in the event that it did not
come up with a realistic plan. The article also mentioned
that Chungbuk has fallen short on its earlier commitments
to improve its capital adequacy ratio and income.  

Last June, the FSC, Korea's financial watchdog institution,
established an evaluating committee to diagnose 12
commercial banks which failed to meet the minimum 8 percent
capital adequacy requirements set by the Bank for
International Settlements (BIS). It issued closure orders
for five banks in late June, and has asked 7 other banks
(including Chungbuk Bank) to provide drastic self
rehabilitation plans. These plans included steps such as
payroll cuts, management layoffs, capital increases or
decreases, and mergers with stronger banks. The FSC
reportedly plans to keep alive only those banks that are
able to meet the 8 percent BIS capital adequacy ratio by
June 2000 via these new rehabilitation plans.  

Statistics on non-performing and bad loans for Chungbuk
bank were released by the Banking Supervisory Authority
(BSA) last September, and revealed that 19.5 percent of the
bank's loans were categorized as either bad or non-
performing. Bad loans include doubtful loans and estimated
losses.

Non-performing loans also encompasses substandard loans, or
collateral-backed loans whose interest payments are overdue
for more than six months.


HANGUK CABLE TV: Completes creditor reconciliation
--------------------------------------------------
The Taechon District Court advertised in the Korean
language Maeil Kyungje that Hanguk Cable TV Taechon
Broadcasting completed its creditor reconciliation
procedure. The company's address is 24-9 Yongchon-dong,
Dong-gu, Taechonshi and the president is Mr. Ahn Hong-gun.


HYUNDAI ELECTRONICS: Sharp differences remain on price
------------------------------------------------------
The Korea Herald reports officials at LG Semicon Co. and
Hyundai Electronics Ind. Co. laid bare sharp differences in
their evaluation of invisible assets of the LG Semicon. LG
demanded that at least 5 trillion ($4.34 billion) to 6
trillion won, including its 59.9-percent stake in LG
Semicon worth 1.3 trillion won, and values of invisible
assets, be paid in cash. It insisted that premiums
associated with LG Semicon's technologies and marketing
rights, as well as synergic effects from the merger, should
be fully calculated. Hyundai executives hit back, charging
that LG excessively overestimated the value of LG Semicon's
invisible assets and merger synergies.

Adding further uncertainty to the viability of the merged
chip company with liabilities in excess of 16 trillion won,
a top financial-market regulator yesterday ruled out the
possibility of any debt write-offs. "Instead of outright
forgiveness, creditor banks will swap the bulk of the
unified firm's debts into equities after close asset
evaluation," Lee Hun-jai, chairman of the Financial
Supervisory Commission, told reporters. Lee then stressed
that drastic restructuring of entire Hyundai affiliates
will be inevitable to raise cash to buy LG Semicon, urging
Hyundai Electronics to immediately spin off all non-
semiconductor operations.

Worse yet, the analysts warned that in the wake of Hyundai-
LG chip merger, Korea may be embroiled in major
international trade and monopoly disputes with the United
States and Japan. "Washington and Tokyo are closely
studying the monopolistic effects and damages from the
Hyundai-LG merger, which will create the world's second
largest memory-chip maker with a global share of nearly 17
percent," said an industry source. "Further, advocates of
the WTO rules tend to view debt-to-equity swaps as illegal
subsidies," he said. Meanwhile, chief restructuring
officers of the two conglomerates got together yesterday in
a bid to discuss the merger and other follow-up measures.

The top Hyundai and LG executives agreed to finalize
details of the merger negotiations by the end of this
month, but failed to narrow differences over the sales
price. "As Hyundai Electronics itself put the synergic
value from the merger at $6.2 billion, at least half of the
amount should be paid to LG in cash," said the LG
executive, drawing strong objection from his Hyundai
counterpart.

Analysts say that the wrangling over takeover prices
shifted attention to the financial capabilities of Hyundai,
which is also currently involved in other mega-mergers and
takeovers, plus Mt. Kumgang tourist project. Heavily
pressed by a looming liquidity squeeze, Hyundai may opt to
suggest handing over a couple of affiliates to LG, in
exchange for cash payments. But LG officials stressed that
the group is not interested in purchasing any Hyundai
assets or companies.


LG SEMICON: Sharp differences remain on price of deal
-----------------------------------------------------
The Korea Herald reports officials at LG Semicon Co. and
Hyundai Electronics Ind. Co. laid bare sharp differences in
their evaluation of invisible assets of the LG Semicon. LG
demanded that at least 5 trillion ($4.34 billion) to 6
trillion won, including its 59.9-percent stake in LG
Semicon worth 1.3 trillion won, and values of invisible
assets, be paid in cash. It insisted that premiums
associated with LG Semicon's technologies and marketing
rights, as well as synergic effects from the merger, should
be fully calculated. Hyundai executives hit back, charging
that LG excessively overestimated the value of LG Semicon's
invisible assets and merger synergies.

Adding further uncertainty to the viability of the merged
chip company with liabilities in excess of 16 trillion won,
a top financial-market regulator yesterday ruled out the
possibility of any debt write-offs. "Instead of outright
forgiveness, creditor banks will swap the bulk of the
unified firm's debts into equities after close asset
evaluation," Lee Hun-jai, chairman of the Financial
Supervisory Commission, told reporters. Lee then stressed
that drastic restructuring of entire Hyundai affiliates
will be inevitable to raise cash to buy LG Semicon, urging
Hyundai Electronics to immediately spin off all non-
semiconductor operations.

Worse yet, the analysts warned that in the wake of Hyundai-
LG chip merger, Korea may be embroiled in major
international trade and monopoly disputes with the United
States and Japan. "Washington and Tokyo are closely
studying the monopolistic effects and damages from the
Hyundai-LG merger, which will create the world's second
largest memory-chip maker with a global share of nearly 17
percent," said an industry source. "Further, advocates of
the WTO rules tend to view debt-to-equity swaps as illegal
subsidies," he said. Meanwhile, chief restructuring
officers of the two conglomerates got together yesterday in
a bid to discuss the merger and other follow-up measures.

The top Hyundai and LG executives agreed to finalize
details of the merger negotiations by the end of this
month, but failed to narrow differences over the sales
price. "As Hyundai Electronics itself put the synergic
value from the merger at $6.2 billion, at least half of the
amount should be paid to LG in cash," said the LG
executive, drawing strong objection from his Hyundai
counterpart.

Analysts say that the wrangling over takeover prices
shifted attention to the financial capabilities of Hyundai,
which is also currently involved in other mega-mergers and
takeovers, plus Mt. Kumgang tourist project. Heavily
pressed by a looming liquidity squeeze, Hyundai may opt to
suggest handing over a couple of affiliates to LG, in
exchange for cash payments. But LG officials stressed that
the group is not interested in purchasing any Hyundai
assets or companies.


MIJU COMPANIES: Four affiliates become workout targets
------------------------------------------------------
The Korean language Maeil Kyungje reports that the Miju
Group's four affiliates will be under a workout program.  
At a creditor meeting held on January 6, Miju Group's major
creditor, SeoulBank, has decided that the four affiliates,
Miju Co., Miju Steel, Miju Steel Mill, and Miju Metal
Company would all go through a workout program.


SHINWON TELECOM: Completes creditor reconciliation
--------------------------------------------------
The Taechon District Court advertised in the Korean
language Maeil Kyungje that the Shinwon Telecom completed
its creditor reconciliation procedure. The company's
address is 24-9 Yongchon-dong, Dong-gu, Taechonshi and the
president is Mr. Ahn Hong-gun.


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

MBF CAPITAL: Given time to find funds for finance unit
------------------------------------------------------
Singapore Business Times reports MBf Capital Bhd has been
given breathing space to find funds to recapitalise its
troubled finance company, banking sources said yesterday.
The sources close to the government told Reuters that the
central Bank Negara, which took control over MBf Finance
Bhd on Monday, had to give existing shareholders another
chance under the Banking and Financial Institutions Act
(Bafia).

The sources did not specify how much time was being given
to MBf Capital, which needs an estimated nearly one billion
ringgit (S$441 million) in fresh capital for its wholly-
owned MBf Finance due to mounting losses and rising non-
performing loans.


RENONG: Turns to toll road unit to sell RM8.5b bonds
----------------------------------------------------
Renong Bhd, Malaysia's biggest industrial group, may have
its cash-rich toll road unit sell a record 8.5 billion
Malaysian ringgit (S$3.7 billion) in bonds to help keep the
parent company in business, two bankers familiar with the
plan said.

The Singapore Business Times reports the proposal would
supplant a controversial plan to replace RM10.5 billion of
debt at Renong and other developers with government bonds.
That plan was shelved after Malaysia failed to endorse it,
faced with the accusation it was bailing out Renong
chairman Halim Saad.

If the new plan goes through, the bond sale will be the
biggest ever by a Malaysian company. It will avert the
collapse of Malaysia's largest construction group and one
of the nation's most politically well-connected business
empires, which has RM20 billion in debt, or more than 5 per
cent of Malaysian banks' total loans.

The new debt plan was outlined by the Malaysian central
bank's debt arbitration committee at a meeting with
Renong's creditors last month, the bankers said. The
committee will submit a formal proposal to creditors and
Renong as early as this week, or at the latest by end of
the month.

The plan would hurt the toll-road company, Projek Lebuhraya
Utara-Selatan Bhd, or Plus, which is among the few viable
businesses in Renong's stable of companies. It will be a
"very heavy burden for Plus", said Phuah Lee Kerk, head of
research at Jupiter Securities Sdn. "It also doesn't make
business sense to issue bonds to pay for other people's
debt."


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

ASKAR LTD: Boulevard unit to restructure $5.4-M loan
----------------------------------------------------
Askar Ltd., a wholly owned subsidiary of publicly listed
Boulevard Holdings, Inc. (BHI), will be restructuring its
$5.4-million loan with PDCP Development Bank.

In a disclosure to the stock exchange, BHI president
Nonnatus P. Chua said PDCP has given its go signal on the
restructuring of Askar's loans, which is expected to boost
the parent firms liquidity position.

Under the restructuring, the $5.4-million loan will be paid
at fixed monthly amortization of $130,000 for a period of
54 months, or four and a half years, until January 6, 2003.
The said amortization fee is inclusive of interest and
principal, the official disclosed.

Mr. Chua added that with the funds BHI will save because of
the restructuring, the company will be able to venture into
other investment activities. As of the end of 1998, BHI
reported that its cash and cash equivalents amounted to 247
million Philippine pesos (PhP) while net earnings as of
August last year stood at PhP12.87 million.


PHILIPPINE AIRLINES: Japanese creditor rejects debt plan
--------------------------------------------------------
According to the South China Morning Post, Dai-Ichi Kangyo
Bank, Japan's third-largest lender, rejected the
rehabilitation plan of debt-strapped Philippine Airlines
(PAL), joining a growing list of creditors to do so. The
Japanese said in a letter to the Securities and Exchange
Commission that the plan submitted by PAL in December was
unfair to creditors and did not provide sufficient data to
determine risks.


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

PACIFIC CAN: SIC waives Pac Can share takeover
----------------------------------------------
According to Singapore Business Times, Pacific Can
Investment Holdings said yesterday that the Securities
Industry Council has waived a requirement by its major
shareholder, KZ Investments and its concert parties, to
make a mandatory takeover offer for the remaining shares in
the issued and paid-up share capital of the company after a
proposed capital reduction exercise and renounceable rights
issue.

This is because undertakings by KZ Investments and Pac Can
director Low Hua Kin in connection with the rights issue
could increase their shareholdings to 25 per cent or more
of the company's enlarged issued share capital.

The waiver is subject to approval by a majority of the
company's independent shareholders.

KZ Investments and its concert parties must abstain from
voting on this resolution and Pac Can must appoint an
independent financial adviser to advise its shareholders on
the waiver.


SONICA: Fu Yu denies it has lost case against Sonica
----------------------------------------------------
Mainboard listed Fu Yu Manufacturing yesterday denied that         
it has lost its case against computer monitor maker Sonica         
Industries, adding that it is "dissatisfied" with a recent
High Court order requiring it to provide Sonica with an
$8.2 million bankers' guarantee.

The plastic injection mould maker was responding to a
recent BT article which said the High Court's order, which
was made on Dec 28 last year, meant that Fu Yu has lost the
case. This order was granted after Sonica sued Fu Yu for
damages last November, claiming that because Fu Yu failed
to deliver certain goods, Sonica suffered an $8 million
loss of profit.

"The Assistant Registrar of the High Court has granted Fu
Yu leave to defend the action conditional upon providing a
banker's guarantee in the sum of $8.2 million by Jan 15,
1999. Fu Yu is dissatisfied with the Order and has filed an
appeal to a High Court Judge.

"The board of directors believes that Fu Yu has a strong
defence to the claim and a substantial counterclaim against
Sonica," said Fu Yu in its statement to the Stock Exchange
of Singapore.


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

SIAM COMMERCIAL BANK: Breaks ground with $355m deal on debt
-----------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Siam Commercial Bank (SCB) yesterday became the
first debt-laden bank to secure aid from a Thai Government
bailout scheme, issuing 1.66 billion baht in subordinated
debentures to the finance ministry.

The debt was exchanged for cash from a finance ministry
bond issue also worth 1.66 billion baht, designed to
replenish the bank's so-called Tier-2 capital under the
government bailout program introduced on August 14.

SCB's 10-year debentures carry an interest rate of 6 per
cent, the bank said. Government bonds issued to support the
recapitalisation scheme bear a yield of 5 per cent,
guaranteeing the finance ministry a 1 per cent profit on
the 300 billion baht scheme. SCB said the debentures were
issued following cabinet approval of the measure on
Tuesday.

SCB said it would request government support for Tier-1
capital of 22 billion baht, which is being considered by
the government, Finance Minister Tarrin Nimmanahaeminda
said on Tuesday.

The bank says non-performing loans equal 35 per cent of all
loans and are expected to peak at about 40 per cent this
year.


TELECOMASIA: Bangkok Bank takes stake as debt repayment
-------------------------------------------------------
The Nation reports Bangkok Bank has agreed to take a 5.17
per cent stake in TelecomAsia Corp Plc (TA) as a debt
repayment from a foreign-registered entity under the
Charoen Pokphand Group. The stake will be transferred
following debt restructuring negotiations between the bank
and its debtor. Bangkok Bank will then take over the 5.17
per cent stake, or 115.02 million shares, in the telecom
company.

On Dec 24, BBL reported to the Stock Exchange of Thailand
that it had bought 115.02 million shares of TA for Bt11.50
per share at a total cost of Bt1.32 billion. The conversion
boosted the bank's share price by Bt2.75 to Bt21.50.

Chartsiri said the debt-to-equity conversion had nothing to
do with the existing amount of debt TA owes to BBL. Chatri
Sophonpanich, executive chairman of BBL, said TA still owes
the same amount to the bank and his bank has no intention
of taking over the company.

The bank's executives refused to disclose the actual amount
of debt which TA owes to the bank.


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
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DC USA.  Debra Brennan and Lexy Mueller, Editors.

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

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