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T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Monday, January 11, 1999, Vol. 2, No. 6

                    Headlines


* C H I N A   &   H O N G   K O N G *

BASIA LIMITED: Winding-up petition
BUHER HOLDINGS LIMITED: Winding-up order
BURLINGAME INDUSTRIES: In members' voluntary liquidation
CHAN CHI SHING FATHER AND SON: Winding-up order
EAST EAGLE INTERNATIONAL LIMITED: Winding-up order

FIELDWORKS CONTRACTOR COMPANY LIMITED: Winding-up Order
FORTUNE REALTY (HK ISLAND) COMPANY: Winding-up order
GUANGDONG ENTERPRISES: Index to drop Gitic Enterprises
GUANGDONG INTERNATIONAL: Status report on claims
KPS VIDEO: Blockbuster finalises HK buy

LAI SUN DEVELOPMENT: Lai Sun says hotel offers on high side
LAND & SKY WORLDWIDE HOLDINGS: Notice of first meetings
SILK PLAN LIMITED: Winding-up petition
SIU-FUNG CERAMICS: Shares dive after two-year suspension
SOUTH VIEW HOLDINGS LIMITED: Winding-up order


* K O R E A *

ASIA MOTORS: Asia Motors bilked out of $180 million
HANBO IRON & STEEL: Controversy continues over fate
HYUNDAI MOTOR: Announces intention to sell units
NEW CHINA HONG KONG: Sued for millions in overdue debts
WOOSUNG TIRE: Michelin chases Woosung Tire

YERIM INTERNATIONAL: Starts liquidation


* M A L A Y S I A *

RENONG BHD: Rescue plan altered


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

MONDRAGON INTERNATIONAL: Banks press for loan repayment
PHILIPPINE AIRLINES: Top Cathay execs defect to PAL


* S I N G A P O R E *

GOLDTRON: Explains huge loss in reply to SES query
VIKAY INDUSTRIAL: Investor agrees to fund restructuring


* T H A I L A N D *

ADVANCED INFORMATION: SingTel purchases 20% stake
BAN CHANG: SET likely to dump five companies
JULDIS DEVELOPMENT: SET likely to dump five companies
PIZZA PLC: Second part of share offer cancelled
STAR BLOCK: SET likely to dump five companies

THAI GRANITE: SET likely to dump five companies
UNIVEST LAND: SET likely to dump five companies
WATTACHAK: SET likely to dump five companies


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

BASIA LIMITED: Winding-up petition
----------------------------------
A petition for the winding up of Basia Limited was
presented to the High Court on  Dec 8, 1998 by  Simon &
Associates Limited of :anjathani Tower, 22nd Floor, 127/27
Ratchadapisek Road, Chongnonsi, Yanawa, Bangkok 10120,
Thailand, and the said petition is directed to be heard
before the court at 9:30 a.m. on  Feb 3, 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 the Solicitors for the
Petitioner, Wilkinson & Grist, Room 901, Prestige Tower,
23-25 Nathan Road, Kowloon, on payment of the regulated
charges for the same.


BUHER HOLDINGS LIMITED: Winding-up order
----------------------------------------
Buher Holdings Limited received a winding-up order dated
December 23, 1998. The date of presentation of the petition
was November 16, 1998. The Registered Office:  Columbus
Centre Building, Wickhams Cay, Road Town, Tortola, British
Virgin Islands.


BURLINGAME INDUSTRIES: In members' voluntary liquidation
--------------------------------------------------------
The creditors of Burlingame Industries (H.K.) Limited,
which is being voluntarily wound up, are required on or
before  Jan 30, 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, they will be deemed to waive all of such debts or
claims and the liquidators will be entitled seven days
after the above date, to distribute the funds available or
any part thereof to the Members. Liquidators: Chiong Lai
Lai, Room 1201, Dina House, Ruttonjee Centre, 11 Duddell
Street, Central Hong Kong.


CHAN CHI SHING FATHER AND SON: Winding-up order
-----------------------------------------------
Chan Chi Shing Father And Son Silverware And Investment
Company Limited received a winding-up order dated December
30, 1998. The date of presentation of the petition was
November 24, 1998. The Registered Office:  8/F., Block A,
Tai Chi Factory Building, 27 Kok Cheung Street, Tai Kok
Tsui, Kowloon.


EAST EAGLE INTERNATIONAL LIMITED: Winding-up order
--------------------------------------------------
East Eagle International Limited received a winding-up
order dated December 30, 1998. The date of presentation of
the petition was November 24, 1998. The Registered Office:  
Suite No. 5A, 16th Floor, Sino Plaza, 255-257 Gloucester
Road, Causeway Bay, Hong Kong.


FIELDWORKS CONTRACTOR COMPANY LIMITED: Winding-up Order
-------------------------------------------------------
Fieldworks Contractor Company Limited received a winding-up
order on December 30, 1998. The date of presentation of the
petition was November 24, 1998. The Registered Office:  
13/F., Cheong Tai Comm. Bldg. 287-289 reclamation Street,
Kowloon.


FORTUNE REALTY (HK ISLAND) COMPANY: Winding-up order
----------------------------------------------------
Fortune Realty (Hk Island) Company Limited received a
winding-up order dated December 30, 1998. The date of
presentation was November 23, 1998. The Registered Office:  
Shop 86, Ground Floor, Wing Fok Centre, 1 Luen Chit Street,
Fanling, New Territories.


GUANGDONG ENTERPRISES: Index to drop Gitic Enterprises
------------------------------------------------------
According to the Hong Kong Standard, Gitic Enterprises will
be removed from the Hang Seng China-Affiliated Corporations
Index (HSCCI) on Monday, as announced yesterday by HSI
Services, which manages the index.

This was prompted by the three-month suspension of Gitic
Enterprises from the Stock Exchange of Hong Kong.

The number of constituents of the red-chip index will be
reduced to 22 from 23, and the market value of the HSCCI is
expected to account for around 5 per cent of the total
market capitalisation of the companies listed on the
exchange. The market capitalisation of Gitic as of August
24, 1998 stood at $256.9 million.


GUANGDONG INTERNATIONAL: Status report on claims
------------------------------------------------
The Asian Wall Street Journal reported the creditors of the
failed Guangdong International Trust & Investment
Corporation (GITIC) are set to meet with the liquidators on
Sunday afternoon to hear a report regarding the status of
their claims. The meeting will be in the GITIC Center in
Guangzhow, the Guangdong provincial capital where GITIC is
based. This gathering follows a 90-day period provided to
creditors to register their claims.

According to this report, there has been little information
from the liquidators about their intentions except some
vague statement that debts registered at the State
Administration for Foreign Exchange will have priority. It
was further reported that although the official debt of
GITIC is listed around $2 billion, the article cited credit
officers at major banks as saying that the actual debt
could be twice that high.


KPS VIDEO: Blockbuster finalises HK buy
---------------------------------------
The Financial Times reports blockbuster, the US home
entertainment retail chain, yesterday finalised an
agreement to purchase assets of KPS, the collapsed Hong
Kong video retail chain. Blockbuster, which had been
looking to enter the Hong Kong market for some time, will
take over 15 of the 38 former KPS stores. Its aims to have
the stores re-opened by lunar new year, the biggest holiday
in the Chinese calendar, in the middle of next month.

KPS was founded in 1981 and grew into the biggest video
rental chain in Hong Kong. It collapsed in October, partly
a victim of the economic crisis and the imposition of laws
last year that banned parallel imports, or the purchase of
goods independently of the official distributor.


LAI SUN DEVELOPMENT: Lai Sun says hotel offers on high side
-----------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Lai Sun Development (LSD) said it had not lowered
the price of the Four Seasons Hotel in New York and still
has several offers under negotiation.

Asked if the present asking price was US$400 million, LSD
director Paul Tong Yuk-lun said it was close to this level
but would not be specific.

The sale of the hotel is part of the Lai Sun's asset
disposal program to cut debt exposure which now stands at
about HK$10 billion.

Other assets for sale include the Regent Beverly Wiltshire
Hotel in Los Angeles and Crocodile House One and Two in
Hong Kong.

LSD intends to raise HK$3 billion from asset disposals to
cut debt to $7 billion within a year. A LSD director said
the company would also sell development properties.

LSD and Lai Sun Garment yesterday won shareholders'
approval for their separate rights issues, which together
would raise about HK$1.5 billion mainly for debt reduction.

On speculation of plans by LSD to sell all or part of its
74.67 per cent stake in mainland property arm Lai Fung
Holdings, LSD director Keith Wu said Lai Fung was engaged
in mainland property projects and it conducted regular
communications with banks on its debt position, but he
would not elaborate on the issue.

There was speculation that Lai Sun was seeking to bring in
the Bank of China Group as a strategic investor in Lai
Fung. One report suggested that Lai Fung might issue HK$700
million to $800 million in convertible bonds to Bank of
China or LSD might sell its Lai Fung shares directly to
the group.

According to the Hong Kong Standard, Lai Sun Development
proposed in late December the issue of up to US$1.99
billion rights shares at $0.50 per share, raising a maximum
of US$884 million before expenses to cut debts.

The group has yet to talk with Nan Fung Development over
the appointment of a Nan Fung representative to the
company's board.

Nan Fung's stake in Lai Sun will be boosted from 18.8 per
cent to 24.12 per cent after the rights issue exercise.


LAND & SKY WORLDWIDE HOLDINGS: Notice of first meetings
-------------------------------------------------------
A meeting of creditors of Land & Sky Worldwide Holdings
Limited will be held on Jan 19, 1999 at 2:30 pm  at the
Official Receiver's Office, 10th Floor, Queensway
Government Office, 66 Queensway, Hong Kong to be followed
at 3:30 pm by a meeting of the contributories.


SILK PLAN LIMITED: Winding-up petition
--------------------------------------
A petition for the winding up of Silk Plan Limited was
presented to the High Court on  Dec 14, 1998 by  Gapo
Limited whose registered office is situate at Top Floor,
Chinachem Golden Plaza, 77 Mody Road, Tsaimshatsui East,
Kowloon, and the said petition is directed to be heard
before the court at 9:30 a.m. on  Jan 20, 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 the Solicitors for the
Petitioner, Ford, Kwan & Company, Suites 1505-1508,
Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East,
Kowloon, on payment of the regulated charges for the same.
Note: Any notice to appear on the hearing of the said
Petition must reach the abovenamed not later than 6 o'clock
in the afternoon of Jan 19, 1999.


SIU-FUNG CERAMICS: Shares dive after two-year suspension
--------------------------------------------------------
According to the South China Morning Post, shares in debt-
ridden Siu-Fung Ceramics Holdings plunged 86.14 per cent
yesterday on the first day of their trading after being
suspended for more than two years.

Hung Sing Securities director Gilbert Cheung Yik-cho said
the company's financial problems had not been solved and
the company has yet to find a new buyer for the injection
of capital.

Siu-Fung is still waiting for a response from its creditors
on a renewed rescue proposal it submitted in mid-December.
The company, with its debts of $2.3 billion to consortium
of banks and note-holders as of December 31, could still be
forced into liquidation if negotiations with its creditors
fail.

Exchange senior executive director (regulatory affairs)
Lawrence Fok Kwong-man said it was suitable for Siu-Fung,
which still has assets and business operations, to resume
trading even though it was in danger of liquidation.


SOUTH VIEW HOLDINGS LIMITED: Winding-up order
---------------------------------------------
South View Holdings Limited received a winding-up order
dated December 23, 1998. The date of presentation of the
petition was November 21, 1998. The Registered Office:  
Unit 07-09, 33rd Floor, Office Tower, Convention Plaza, 1
Harbour Road, Wanchai, Hong Kong.


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

ASIA MOTORS: Asia Motors bilked out of $180 million
---------------------------------------------------
The Korea Times reported that Asia Motors, a subsidiary of
the bankrupt Kia Motors Corporation was swindled out of
$180 million in export payments by an ethnic Korean car
dealer in Brazil. Asia Motors, as well as Kia Motors are
currently under court protection pending their take over by
Hyundai Motors.  

The Korea Herald also reported in a similar story that Chon
Jong-jin, the president of Asia Motors do Brazil (AMB), was
arrested last November when he visited Korea. Prosecutors
also reportedly said that 10 or so former executives and
employees of Asia Motors (who disappeared after Chon was
arrested) are believed to be involved with this plot.  

The scheme involved Chon convincing Asia Motors to jointly
set an automobile assembly factory in Brazil. In order to
earn revenue for the project, Chon then imported 20,000
vans and other cars worth $210 million on credit between
1996 and 1997. Chon has only repaid Asia $30 million.  

Chon is alleged to have made this transaction by issuing
documents-against-acceptance (DA) through a bogus Panama-
registered company (which Chon himself established in 1993)
called Banbari International (BBI). Following the Kia
bankruptcy in 1997, Chon transferred all the credit rights
that BBI held against AMB to another front company set up
by Chon, AS. AS then settled the DA bills in the form of
paying AMB the capital for the joint venture. This made it
impossible for Asia Motors to retrieve its payments for the
exports, as BBI was left with no assets to pay Asia Motors.  
The missing money is suspected to have been deposited in a
secret Swiss bank account.

In addition to Chun, a Mr. Lee who was in charge of Asia
Motor's exports, is believed to have collected about 1
percent in commissions for this deal. Mr. Lee is suspected
of having fled to the USA.  

Additionally, the Brazilian government, which provided tax
breaks and other benefits for the planned joint auto
assembly facility, is prepared to slap fines up to $200
million on the new owner of Asia Motors in the event the
promised investments into Brazil do not materialize.  

A separate report in the Korea Times stated that ground
braking for the Brazilian auto plant took place in August
of 1997, but no further progress has been made. Hyundai
Motors has reportedly decided during its pre-purchase
review of Kia assets last year that it wanted to remain in
the Brazilian market.


HANBO IRON & STEEL: Controversy continues over fate
---------------------------------------------------
The Korea Times reports controversy is continuing to brew
over how to handle Hanbo Iron & Steel Co., which will mark
two years of bankruptcy on Jan. 23. How to deal with Hanbo
has been the focus of concern at home and abroad with some
nations like the United States having kept close watch over
the process with respect to possible violations of World
Trade Organization (WTO) rules.

The core problem has been who should take over the
financially troubled company among foreign and domestic
enterprises amid the expected lackluster business climate
facing the steel sector and the over-supply of steel
products in the domestic market this year.

Most business sources are of the opinion that it is better
for the domestic steel industry if a foreign company or
consortium acquires Hanbo -- a takeover that would mitigate
the excessive supply -- rather than if corporate
restructuring is expedited.

They cite the need for a foreign firm either to move
production facilities abroad after purchase or to export
steel products and components if it maintains production
lines in Korea.

Hanbo's creditor banks as well as Bankers Trust Company
(BTC) of the United States, chosen as the leading brokerage
firm, are scheduled to come up with the purchaser by next
year, after receiving letters of intent from related
companies by Jan. 12.

What matters is that no company, foreign or domestic, other
than Dongkuk Steel Mill Co. has expressed an intention of
acquiring Hanbo. Dongkuk submitted 1.720 trillion won for
the takeover.

Creditor banks are seeking to lure foreign enterprises to
the competition for the takeover in a bid to get as much
money as possible in the process rather than engaging in
negotiations with only Dongkuk. Dongkuk has revealed its
displeasure over the attitude of the creditor banks,
asserting that they, jointly with the BTC, have organized a
competition that amounts to an "unfair game."

"So far, no foreign company has submitted terms more
favorable than those presented by us. It has been very
inappropriate for the creditor banks to have halted the
bidding process only one day after we applied for
purchase," said a Dongkuk official.

Steel experts assert it is more proper and practical to
sell the A and B divisions of Hanbo's Tangjin steel mill
separately. Creditor banks believe they can secure more
sell-off money and have an easier process through separate
sales.


HYUNDAI MOTOR: Announces intention to sell units
------------------------------------------------
Hyundai will sell off 11 subsidiaries and business units,
including three to four firms whose assets each amount to
more than 1 trillion won, by the end of this year.

These sales include the disposal of the non-semiconductor
unit of Hyundai Electronics Industries, which will become a
chip manufacturing specialist in line with its take-over of
LG's semiconductor unit.

Hyundai's automobile unit will be given its independence
from the conglomerates by 2001 and four other core business
units will be separated by 2005.

The four business units are in the fields of electronics
led by Hyundai Electronics; heavy industry and chemicals,
led by Hyundai Heavy Industries, Inchon Iron & Steel and
Hyundai Oil Refinery; construction, led by Hyundai
Engineering and Construction and finance and services.

Park Se-yong, chief of the Hyundai Group's corporate
restructuring office, said in a press conference yesterday
that Hyundai has selected the five business units which
rank among the world's top 10 in terms of output as its
core businesses.

"Hyundai will reduce its output by 9,425.9 billion won and
its assets by 13,836 billion won through the separation of
subsidiaries from the conglomerate itself, as well as
liquidations and mergers in the first half of this year,"
Park said, in explaining Hyundai's restructuring program.

The 11 subsidiaries and business units which are up for
sale have a combined total of 19,107 billion won in assets
and recorded 10,989.7 billion won in total output last
year, Park said.

Once the restructuring program is completed, the Hyundai
Group will see a 21.9 percent or 20,417.6 billion won
reduction in output by the end of this year from last
year's estimated 93,281.8 billion won. Hyundai will also
see an asset reduction of 32.6 percent or 32,943 billion
won from last year's estimated 101,074.9 billion won, Park
said.

When its automobile unit is separated in 2001, Hyundai will
see a reduction of 32.6 percent or 30,355.6 billion won in
output compared to last year and a reduction of 44.3
percent or 44,722.7 billion won in assets, he explained.

In particular, Hyundai's output based on the manufacturing
sector will drop by 64.3 percent and its total assets by
56.7 percent in 2001 compared to last year.

Park said that there will be no problem raising the funds
needed to meet the 200 percent debt-to-equity ratio Hyundai
has pledged to realize in its agreement with its major
creditor bank.

Hyundai plans to raise the needed funds to finance projects
in North Korea, establish an integrated semiconductor firm,
and invest in Kia Motors by selling off real estate and
shares, making public rights issues and issuing bonds
overseas. The 1,178.1 billion won needed to pay for Kia
Motors shares by March will be provided by profit-making
subsidiaries.

Hyundai plans to introduce $5.4 billion in foreign capital
this year, following the successful attraction of $5.1
billion last year.

Park said, "Hyundai will be able to reduce its debt-to-
equity ratio to 199.7 percent by the end of this year as
pledged."

Hyundai's restructuring program has come out amid mounting
doubt about its ability to raise the funds necessary to
finance the purchase of mammoth corporations such as Kia
Motors, LG Semicon and Hannam Investment Trust Management
Co.

Touching on rumors that Hyundai Oil Refinery will be handed
over to LG in return for the acquisition of LG's
semiconductor unit, Park said, "Hyundai Oil will not be
handed over to others promptly as it has been listed in the
group of core five business units," indicating that it
could be subject to M&A or sell-off if necessary.

Hyundai has already decided to abandon the petrochemical,
aircraft manufacturing, railway car and power generation
facilities sectors in the government-initiated corporate
restructuring program, Park explained.

The four segments Hyundai has given up are valued at
5,819.7 billion won in assets and 2,339.5 billion won in
output. The figures account for 7.2 percent of Hyundai's
output in the manufacturing field and 10.6 percent of
Hyundai's total assets.


NEW CHINA HONG KONG: Sued for millions in overdue debts
-------------------------------------------------------
A front page article in the Asian Wall Street Journal
reported that within the past five weeks, five different
banks and companies have hit New China Hong Kong Group Ltd.
with law suits claiming a total of HK$187 million in
overdue debts. Among those who have sued are the
International Bank of Asia over HK$7 million and the Bank
of China for HK$23 million in overdue debts. The article
stated that one bank has even started bankruptcy
proceedings against New China.

According to this story, New China was started as a pre-
eminent investment bank in early 1993 by Hong Kong business
man Tsui Tsin-tong who assembled what was reported to be a
roster of founding shareholders that resembled a Who's Who
in the Chinese business world. However, the bank in now
reported to be pinched for cash and sold its core
securities and corporate finance business last September.  


WOOSUNG TIRE: Michelin chases Woosung Tire
------------------------------------------
The Detroit News reports Woosung Tire Co., an insolvent
South Korean tire maker, said France's Michelin SCA,
Japan's Bridgestone Corp. and other companies are vying to
buy the company to strengthen their Asian production
networks.

"Several foreign and domestic companies have expressed
interest and some of them, including Bridgestone and
Michelin, are carrying out due diligence," said a financial
official at Woosung. "Creditors hope to complete the deal
by the end of next month."

Woosung Tire is a unit of Woosung Group, which has been
insolvent for two years. Under court receivership, it still
holds a 10 percent share of the tire market in Korea, which
is the world's seventh-largest auto producer. It's one of
several potential acquisition targets in Korea.

"We know that consolidation in the car-parts market isn't
over and that there are opportunities in Southeast Asia,"
said Etienne Mercier, a Michelin spokesman. "And we're
looking for opportunities there." He declined to comment
specifically on whether Michelin is interested in Woosung.

Bridgestone said it is not considering a purchase.


YERIM INTERNATIONAL: Starts liquidation
---------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Yerim International Co. has started
its liquidation process. The creditors have until January
30 to file their claims.  


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

RENONG BHD: Rescue plan altered
-------------------------------
The Asian Wall Street Journal reported in a front page
article that the Malaysian government has modified is
proposed rescue plan of the Malaysian conglomerate Renong
Bhd. However, the same report mentioned that the plan
may be rejected by the Renong's lenders, who feel that the
group's management should be punished for the conglomerates
financial problems.  

The new plan does not involve any government guaranteed
bonds. Instead the government is proposing that Renong
repay its immediate debt obligations by using funds from
the group's lucrative toll-road operator, Projek Lebuhraya
Utara-Selatan Bhd. or PLUS (the PLUS toll road that runs
north and south along Malaysia's west coast). This new plan
calls for PLUS to issue 8.5 billion ringgit in bonds. The
money would be used to help repay Renong's immediate debt
of approximately 6 billion ringgit and another 2.5 billion
ringgit owed by its affiliate United Engineers Malaysia
Bhd. Renong would sell undisclosed assets to Plus for these
funds.  

The original plan opposed by creditors because they faced
receiving as little as half of their money back, and the
plan did not impose any penalty on Renong's management.  
This plan was to have 10.5 billion rinngit of the Renong
group's debt be replaced by government guaranteed bonds.  
The bonds would be paid off partly by revenue from PLUS and
partly from tax payments that PLUS would otherwise make to
the government. This first plan also called for the
government to take a stake in some other Renong public
works projects, and the unlisted shares of PLUS will be
pledged as security.  

Last October Renong defaulted on interest payments and
guarantee fees worth 421.4 million ringgit of revolving
facilities, and a $147 million transferable loan
certificate. Renong owes local and foreign creditors
more than 28 billion ringgit in commercial debt, a number
that represents roughly 5 percent of all the loans in the
Malaysian banking system.


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

MONDRAGON INTERNATIONAL: Banks press for loan repayment
-------------------------------------------------------
According to the South China Morning Post, four Philippine
banks are demanding that Mondragon International
Philippines repay 394 million pesos in short-term loans
owed by its resort subsidiary, the government said. State-
owned Clark Development seized control of Mondragon's
casino and golf resort last month for allegedly failing to
pay 465 million pesos in rent and not fulfilling other
contractual obligations.


PHILIPPINE AIRLINES: Top Cathay execs defect to PAL
---------------------------------------------------
According to the South China Morning Post, four senior
executives of Cathay Pacific Airways, most of whom were
involved in the failed negotiations between Cathay and
PAL for the rescue of PAL were lured away by PAL chairman
Lucio Tan in the Philippine Airlines' desperate efforts to
stave off collapse.

The principal Cathay Pacific executive lured to PAL is
Taiwan-based Peter Foster, Cathay's general manager of
Taiwan and the Philippines, who also headed Cathay
Pacific's operations in the Philippines until six years ago
and who was closely involved in the due diligence of PAL.

The second figure involved is Mike Scantlebury, a finance
director in Swire Pacific's trading division who has a
background in aircraft financing at Cathay.

The identities of the other two executives involved were
unknown.

Cathay Pacific general manager of corporate communications
Andrew Herdman confirmed the resignations but said the
Cathay had no official position on the matter. He said Mr
Foster had been an advocate of a Cathay-PAL tie-up and is
still convinced about the viability of PAL.

It is believed the four will be departing Cathay
immediately although Mr Scantlebury's secretary said he
would be in his Swire office on Monday.

According to the Hong Kong Standard, Philippine Securities
and Exchange Commission (SEC) chairman Perfecto Yasay
yesterday assured creditors of PAL that their interests
will be protected in any revival plan that will be drawn
for PAL. Some of the 9,000 PAL creditors rejected the
rehabilitation plan of the airline due to apprehensions
over the repayment of their receivables.

In its proposed five-year revival plan, PAL called for
grace periods on repayment of principal to creditors, debt
forgiveness on default interest and extension of most of
its US$2 billion debt.

The SEC head said that if the PAL owners and creditors
agree to rehabilitate PAL, the SEC would appoint "third
party experts familiar with the operations of an airline."
He said the success of any rehabilitation plan for PAL
needed the cooperation of at least six of the creditors of
PAL.


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

GOLDTRON: Explains huge loss in reply to SES query
--------------------------------------------------
Singapore Business Times reports Goldtron lost a whopping
$64 million in the six months to end-September last year by
discontinuing its manufacturing and telecommunications
research and development facilities.

This was disclosed in a reply to the Stock Exchange of
Singapore's queries on the electronics company's interim
results, which showed a net loss of $1.9 million and an
extraordinary loss of $145.8 million. The company is
currently being restructured with the help of Price
Waterhouse.

The interim period's extraordinary loss came almost on the
heels of Goldtron's reported loss of $133.07 million for
the 15 months ended March 1998, after extraordinary
provisions of $140.3 million, compared with a profit of
$27.5 million in the 12 months ended Dec 31, 1996.

Giving a breakdown, the company said that $27 million of
the extraordinary losses came from magnetic media
operations, $24.6 million from marketing and development
expenditure and "others", $18.6 million from home
automation and security system operations, $6.1 million
from interactive terminal operations, and $5.6 million from
diminution in investment values.

Goldtron also explained that when it announced its 15
months' results in end-June, it was not possible to
anticipate further provisions as it was in negotiation with
its lenders and had brought in Price Waterhouse to help in
the negotiations and to restructure its operations.

"As a consequence of a lack of funding, the company in
consultation with Price Waterhouse decided to discontinue
its non-core businesses and operations and make the
necessary provisions that are the subject of your query,"
Goldtron said yesterday.


VIKAY INDUSTRIAL: Investor agrees to fund restructuring
-------------------------------------------------------
Singapore Business Times reports Sesdaq-listed Vikay
Industrial yesterday said it has reached in-principle
agreement with an unnamed "qualified" investor who has
agreed to fund the group's restructuring as a going
concern. It is now awaiting its bank creditors' consent to
a revised proposal to go ahead, submitted late last month
for their approval.

The liquid crystal display product maker's announcement
follows recent newspaper reports calling for updates by
companies who have kept low profiles while undergoing
judicial management to the extent of not updating
shareholders regularly.

Vikay director Marcus Tanihaha said that the restructuring
committee (RC) set up to help resuscitate the debt-laden
group last year was aware that other schemes may be under
consideration by its judicial managers.

Earlier reports have estimated the asking price for Vikay's
four LCD manufacturing factories in Malaysia and China and
a majority equity stake in the group to be $80 million. At
end-1996, its net asset value was $67 million.

Vikay owes 24 financial institutions -- mostly Singapore-
based banks and leasing companies -- a total of $107
million, a sum expected to be assumed by the white knight.

In May, the company reported an unaudited net loss of $9.2
million and extraordinary losses of $21.9 million for 1997.
Suspended from trading since late November 1997, Vikay
shares were last traded at 19 cents.


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

ADVANCED INFORMATION: SingTel purchases 20% stake
------------------------------------------------
The Bangkok Post reports Singapore Telecommunications has
announced its second largest foreign investment with the
planned purchase of 20% of Advanced Info Service Plc,
Thailand's largest mobile phone operator. AIS said the deal
with SingTel, worth at least 11.57 billion baht, would
strengthen the company's financial status, reduce operating
and financial expenses and increase profit potential.

The investment in AIS will be made by SingTel International
(STI), a wholly-owned subsidiary of the Singaporean
company. It will purchase 14.3 million AIS shares at 230
baht each from Shinawatra Computer and Communications Plc,
the parent of AIS, for a total of 3,289 million baht. It
will also subscribe to 36 million new ordinary shares of
AIS at 10 baht per share.

As well, STI will lend 851 million baht to Shinawatra with
a term of one year, at an interest rate 1.5 points above
the London interbank offered rate.

STI also has an option to convert its liabilities into
ordinary shares of AIS held by Shinawatra (3.7 million) at
230 baht per share, bringing its total stake to 20% on a
fully diluted basis.


BAN CHANG: SET likely to dump five companies
--------------------------------------------
The Bangkok Post reports at least five companies are likely
to be delisted as they have not submitted their quarterly
financial statements to the Stock Exchange of Thailand for
several consecutive quarters. Although the SET refused to
name the companies, reports at the SET information centre
showed that companies that had not submitted quarterly
statements included: Wattachak Plc, a media group; Star
Block Plc, a house construction company; Thai Granite Plc,
a construction materials trading firm; and three property
developers: Ban Chang Plc, Univest Land Plc, and Juldis
Development Plc.

According to SET information, Ban Chang has not submitted
statements since the last quarter of 1997. Ban Chang has
6,728 small shareholders holding 45.29% of its 2.85 billion
baht in registered capital. Major shareholders are Phairoj
Piempongsan (8.34%), Bangkok Bank of Commerce (3.9%), Thai
Sirivivat Co (3.65%), Prayoon Chindapradist (3.3%), and
Suwanna Luangtrakulchai (2.84%).
  

JULDIS DEVELOPMENT: SET likely to dump five companies
-----------------------------------------------------
The Bangkok Post reports at least five companies are likely
to be delisted as they have not submitted their quarterly
financial statements to the Stock Exchange of Thailand for
several consecutive quarters. Although the SET refused to
name the companies, reports at the SET information centre
showed that companies that had not submitted quarterly
statements included: Wattachak Plc, a media group; Star
Block Plc, a house construction company; Thai Granite Plc,
a construction materials trading firm; and three property
developers: Ban Chang Plc, Univest Land Plc, and Juldis
Development Plc.

According to SET information, Juldis has not submitted
statements since the first quarter of last year.


PIZZA PLC: Second part of share offer cancelled
-----------------------------------------------
The Bangkok Post and Reuters reports The Pizza Plc said
yesterday that it would not proceed with the second round
of a planned offering of five million new shares because it
already had sufficient capital to service its debt.

Money raised from the first round had given the company
enough cashflow, operations director Anek Wongbundit said.
Mr Anek also said that if the company needed more working
capital, it would prefer to seek a loan in the financial
markets rather than raising funds from share offerings.
"Domestic interest rates are falling continuously and a
loan will have no dilution effect on our shareholders."

The company said last year that it planned to raise about
500 million baht by issuing five million new shares. Of the
total, 2.3 million shares were placed privately in mid-1998
to six financial institutions in Hong Kong and Europe at
115 to 120 baht each. A further 2.7 million shares were
expected to be offered at above 120 baht each at a later
date.

"We will cancel the issue of the remaining 2.7 million
shares because we have sufficient capital from the first
round for debt repayment," Mr Anek said.

SET-listed Pizza operates more than 250 outlets of Pizza
Hut, Sizzler, Dairy Queen and Swensen's in Thailand.
Mr Anek said last November that The Pizza had only short-
term debts worth 240 million baht following repayment of
both domestic and foreign debts worth more than 400 million
baht last year.


STAR BLOCK: SET likely to dump five companies
---------------------------------------------
The Bangkok Post reports at least five companies are likely
to be delisted as they have not submitted their quarterly
financial statements to the Stock Exchange of Thailand for
several consecutive quarters. Although the SET refused to
name the companies, reports at the SET information centre
showed that companies that had not submitted quarterly
statements included: Wattachak Plc, a media group; Star
Block Plc, a house construction company; Thai Granite Plc,
a construction materials trading firm; and three property
developers: Ban Chang Plc, Univest Land Plc, and Juldis
Development Plc.

According to SET information, Star Block has not submitted
statements since the last quarter of 1997. Star Block has
4,375 small shareholders holding 59.51% of its 603.75
million baht in registered capital. Major shareholders are
SD Holding Bhd (13.04%), HSBC (Singapore) Nominees (4.97%),
Munira Suphanond (2.52%), Viroj Termsiri (1.65%), and the
Thailand Securities Depository Co (1.45%).


THAI GRANITE: SET likely to dump five companies
-----------------------------------------------
The Bangkok Post reports at least five companies are likely
to be delisted as they have not submitted their quarterly
financial statements to the Stock Exchange of Thailand for
several consecutive quarters. Although the SET refused to
name the companies, reports at the SET information centre
showed that companies that had not submitted quarterly
statements included: Wattachak Plc, a media group; Star
Block Plc, a house construction company; Thai Granite Plc,
a construction materials trading firm; and three property
developers: Ban Chang Plc, Univest Land Plc, and Juldis
Development Plc.

According to SET information, Thai Granite has not
submitted statements since the first quarter of last year.
  

UNIVEST LAND: SET likely to dump five companies
-----------------------------------------------
The Bangkok Post reports at least five companies are likely
to be delisted as they have not submitted their quarterly
financial statements to the Stock Exchange of Thailand for
several consecutive quarters. Although the SET refused to
name the companies, reports at the SET information centre
showed that companies that had not submitted quarterly
statements included: Wattachak Plc, a media group; Star
Block Plc, a house construction company; Thai Granite Plc,
a construction materials trading firm; and three property
developers: Ban Chang Plc, Univest Land Plc, and Juldis
Development Plc.

According to SET information, Univest has not submitted
statements since the first quarter of last year.


WATTACHAK: SET likely to dump five companies
--------------------------------------------
The Bangkok Post reports at least five companies are likely
to be delisted as they have not submitted their quarterly
financial statements to the Stock Exchange of Thailand for
several consecutive quarters. Although the SET refused to
name the companies, reports at the SET information centre
showed that companies that had not submitted quarterly
statements included: Wattachak Plc, a media group; Star
Block Plc, a house construction company; Thai Granite Plc,
a construction materials trading firm; and three property
developers: Ban Chang Plc, Univest Land Plc, and Juldis
Development Plc.

According to SET information, Wattachak has not submitted
financial statements to the SET for five consecutive
quarters, not including the fourth quarter of last year,
since the third quarter of 1997.

Wattachak has 2,586 small shareholders holding 17.95% of
the company's 1.84 billion baht in registered capital. Its
five largest shareholders are Nikorn Pornsathit (29.27%),
Wattachak Holding Co (10.98%), JP Morgan Whitefriars Inc
(5.43%), SCF Finance and Securities Plc (3.57%), and Hi
Lucky Co (3.49%).



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