---

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 18, 1999, Vol. 2, No. 11

                    Headlines


* C H I N A   &   H O N G   K O N G *

CHINA EVERBRIGHT: Reports large cash flow problems


* I N D O N E S I A *

ASTRA INTERNATIONAL: Astra meets with creditors


* J A P A N *

NISSAN MOTOR: Gets Renault bid for around 20% stake
NISSAN MOTOR: Would consider DaimlerChrysler stake


* K O R E A *

HANGUK CABLE TV: Completed creditor reconciliation  
HYUNDAI PAINT: Completes creditor reconciliation    
KORYO LIFE: Firm is bankrupt
SAMSAN CO: Completes creditor reconciliation
SANG-A SALE: Completes liquidation plan

SHINWON TELECOM: Completes creditor reconciliation
TAEHWA SHOPPING: Calls for creditor meeting


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

MONDRAGON INTERNATIONAL: Asks creditors for 90-day relief
PHILIPPINE AIRLINES: Creditors agree to talk about plan


* T H A I L A N D *

BANK OF AYUDHYA: Moody's places banks under review
GOVERNMENT HOUSING BANK: Moody's places banks under review


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

CHINA EVERBRIGHT: Reports large cash flow problems
--------------------------------------------------
A front page article in the Asian Wall Street Journal
reported that China Everbright Holdings Company produced a
cash flow short fall of $142 million in 1997, the most
recent period for which audited figures are available. A
source at Moody's Investor Services said that this group is
simply short of cash as its core businesses did not
generate enough profit to cover loan payments and interest.

China Everbright was described in the article as one of the
most important among China's government run companies
operating overseas, and is an investment arm of China's
ruling State Council.

Although the article mentioned that China Everbright had a
net profit of $81 million at the end of 1997, it also had a
net debt to equity ratio of 230 percent. An analysis in
this report also mentioned that for indebted companies, a
steady cash flow can be more important than profit.
    

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

ASTRA INTERNATIONAL: Astra meets with creditors
-----------------------------------------------
The Asian Wall Street Journal reported that PT Astra
International, Indonesia's largest assembler of
automobiles, met with its banks and other creditors in a
continuing effort to restructure its large debt. The
article said that a creditor committee has asked Astra to
resume partial interest payments.  

Last October, Astra announced that its business has fallen
so much that it had stopped paying interest on about $2
billion in foreign loans, and local currency debt of 2
trillion rupiah. Statistics presented in this article
indicate that Astra's 1998 domestic car sales amounted to
only 58,011 units, a drop of 82 percent from the year
before.

Last month, Astra presented a debt restructuring proposal
to its creditors that called for its debt to be divided
into three tranches with varying grace and repayment
schedules. However, many of the creditors have refused to
accept Astra's moratorium on interest payments on its debt.
Astra's debts are mainly to Japanese and European banks.  
Bankers involved in these latest talks are claiming that
Astra is seeking debt write-offs from its creditors.


=========
J A P A N  
=========

NISSAN MOTOR: Gets Renault bid for around 20% stake
---------------------------------------------------
Nikkei Nissan Motor Co. has received a proposal from
Renault SA for a comprehensive alliance that would include
the French automaker's taking an equity stake of around 20%
in Nissan, The Nihon Keizai Shimbun learned Friday.

Nissan will now study the offer. In the meantime, however,
it plans to continue talks with DaimlerChrysler AG over the
sale of shares in affiliate Nissan Diesel Motor Co.
Industry insiders say DaimlerChrysler is interested in
taking an equity stake in Nissan Motor itself as well.

Since last year, Renault and Nissan have been discussing
cooperating in Central and South America and other emerging
markets. Renault now seeks to expand those plans into a
comprehensive alliance covering production, including the
use of Nissan's overseas plants, and sales.

Renault sees a tie-up with Nissan, which serves mainly Asia
and North America, as complementing its own strength in
Europe and South America.

Renault has seen its business improve since 1997 thanks to
robust sales of passenger cars in Europe. At the same time,
however, the French automaker is contending with the
formation of a unified Europe and the global realignment of
the auto industry.


NISSAN MOTOR: Would consider DaimlerChrysler stake
--------------------------------------------------
The Asian Wall Street Journal reported that the president
of Nissan Motors Company that it would consider a capital
tie-up with DaimlerChrysler AG, if it were proposed. The
article mentioned that Nissan has projected a loss of 30
billion yen for the fiscal year ending March 31, and that
it has reported a loss in five of the last years. Earlier
newspaper reports put Nissan's debts between $22 billion
and $30 billion, which is more than any other auto maker in
the world.


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

HANGUK CABLE TV: Completed creditor reconciliation  
--------------------------------------------------
The Taechon District Court advertised in the December 31st
edition of the Korean language Maeil Kyungje that the
Hanguk Cable TV Taechon Broadcasting Co. completed its
creditor reconciliation procedure. The company's address is
24-9 Yongchon-dong, Tong-gu, Taechon and the president is
Mr. Ahn Heung-gun.


HYUNDAI PAINT: Completes creditor reconciliation    
------------------------------------------------
According to the December 29th edition of the Korean
language Maeil Kyungje's Business Brief section, the
Hyundai Paint Co. completed its creditor reconciliation
procedure, which was approved by the Inchon District Court.


KORYO LIFE: Firm is bankrupt
----------------------------
The Seoul District Court advertised in the December 31st
edition of the Korean language Maeil Kyungje that the Koryo
Life Insurance Co. is insolvent. The creditors have until
January 25, 1999 to file their claims. The company's
address is 25-5 Chungmuro 1-ga, Chung-gu, Seoul.


SAMSAN CO: Completes creditor reconciliation
--------------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Samsan Company completed its
creditor reconcilition procedure. The company's address is
80-10 Keumsa-dong, Keumjung-gu, Pusan and the presidents
are Mr. Kim Jun-shik and Yun Jae-dong.


SANG-A SALE: Completes liquidation plan
---------------------------------------
The Seoul District Court advertised in the December 29th
edition of the Korean language Maeil Kyungje that the Sang-
a Sale Co. completed its liquidation plan. The company's
president is Mr. Kim Kap-sul.


SHINWON TELECOM: Completes creditor reconciliation
--------------------------------------------------
The Taechon District Court advertised in the December 31st
edition of the Korean language Maeil Kyungje that the
Shinwon Telecom Co. completed its creditor reconciliation
procedure. The company's address is 24-9 Yongchon-dong,
Tong-gu, Taechon and the president is Mr. Ahn Heung-gun.


TAEHWA SHOPPING: Calls for creditor meeting
-------------------------------------------
The Pusan District Court advertised in the December 30th
edition of the Korean language Maeil Kyungje that the
Taehwa Shopping Company is holding a creditor meeting on
February 10, 1999 to decide whether to approve the
company's liquidation plan or not. The company's address is
193-1 Puchon-dong, Pusanjin-gu, Pusan and the president is
Mr. Kim Jae-won.


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

MONDRAGON INTERNATIONAL: Asks creditors for 90-day relief
---------------------------------------------------------
The Asian Wall Street Journal reported that Mondragon
International Philippines Inc. has asked its creditors
banks for a 90 day delay on paying its debts as it
renegotiates a lease.  

Mondragon's lease on the Mimosa tourism estate was
terminated last month due to unpaid rents of 465 million
pesos. Mimosa, a 250 hectare estate in the Clark special
economic zone has a casino, hotel, and golf course. This
estate was leased from Clark Development (the government
agency managing the Clark special economic zone), and is
reportedly the main driver of Mondragon's earnings. The
article also stated that Mondragon had offered to pay a 275
million peso cash settlement to resolve this lease dispute,
but it was refused by Clark Development.  

This story also reported that early last week, four
creditor banks gave Mondragon five days to settle some 394
million pesos in short term obligations. Additionally,
Mondragon is also reported to be in the midst of a standing
contract dispute with the Philippines Amusement & Gaming
Corporation, the government organization with exclusive
rights to running casinos in the Philippines.


PHILIPPINE AIRLINES: Creditors agree to talk about plan
-------------------------------------------------------
The Asian Wall Street Journal reported that the creditors
of Philippine Airlines (PAL) have agreed to resume talks to
prevent the airline from closing. The Philippine Securities
Exchange Commission chairman announced that PAL's major
creditors agreed to the talks during a meeting in Hong
Kong. Creditors reportedly agree that PAL can be saved, but
reject a proposed rescue plan submitted earlier by the PAL.  
Creditors will submit changes that they would like to see
put into this plan.  

PAL's management prepared the rehabilitation plan submitted
to the Philippine Securities Exchange Commission. The
commission has allowed PAL to stop payments on $2.1 billion
in debts pending this plan's approval.

The PAL proposed rehabilitation plan calls for an equity
infusion of $150 million in fresh equity, reduction of
fleet size, cutting overhead costs, an indefinite grace
period on principal loan payments, and eventually finding a
strategic partner. However, most of PAL's creditors have
rejected this plan.


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

BANK OF AYUDHYA: Moody's places banks under review
--------------------------------------------------
Moody's Investors Service has placed Bank of Ayudhya (BAY)
(E+) and Government Housing Bank (GHB) (D+) under review
for possible downgrade of the banks financial strength
ratings, Business Day (Thailand) reports. The debt and
deposit ratings were confirmed.

The rating agency said its action reflected continued
pressures on the capital and asset quality of Thai banks.


GOVERNMENT HOUSING BANK: Moody's places banks under review
----------------------------------------------------------
Moody's Investors Service has placed Bank of Ayudhya (BAY)
(E+) and Government Housing Bank (GHB) (D+) under review
for possible downgrade of the banks financial strength
ratings, Business Day (Thailand) reports. The debt and
deposit ratings were confirmed.

The rating agency said its action reflected continued
pressures on the capital and asset quality of Thai banks.



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 * * *