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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 25, 1999, Vol. 2, No. 16

                    Headlines


* C H I N A   &   H O N G   K O N G *

CNT GROUP: Announces Citybus sale agreement
FUJIAN ENTERPRISES: Fujian Enterprises will miss payment
GITIC ENTERPRISES: In talks over parent's liquidation
GUANGDONG INTERNATIONAL: Creditors face bankruptcy maze
H B INTERNATIONAL: Reports on negotiations with creditors

HK DAILY NEWS: Emporer decreases shareholding
HSBC HOLDINGS: Earnings seen falling 30% with Asian losses
LAND GROUP: Land Group head's arrest hurts ailing firm


* I N D O N E S I A *

INTI INDORAYON UTAMA: Duff & Phelps reaffirms rating


* J A P A N *

DAI-ICHI KANGYO BANK: Moody's downgrades long-term ratings
LONG TERM CREDIT: Daido Mutual to buy investment trust unit
MITSUBISHI TRUST: Moody's cuts Mitsubishi Trust's ratings   
NIPPON CREDIT: IBJ shareholder to sue former management
NISSAN MOTOR: Seeks 30% equity stake from DaimlerChrysler


* K O R E A *

DAEWOO ELECTRONICS: Officials close in on swap
SAMSUNG MOTORS: Official close in on swap


* M A L A Y S I A *

RENONG: Renong's Prolink fails to pay RM41m in interest


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

PHILIPPINE AIRLINES: PAL owner quits management


* T H A I L A N D *

ALPHATEC: Bank urges $10m injection to revive Alphatec
BANK OF ASIA: Has regulators' blessing
HOUR GLASS: Change in business structure
KASET THAI SUGAR: Creditors' request wins court approval
RUAM PHOL INDUSTRY: Creditors' request wins court approval

THAI DANU BANK: Posts 8b baht loss on bad loan provisions
THAI EKKALUCK SUGAR: Creditors' request wins court approval
TISCO: To issue one billion shares at Bt10


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

CNT GROUP: Announces Citybus sale agreement
-------------------------------------------
Cnt Group Limited has informed the Stock Exchange of Hong
Kong that on 18 January 1999, CNT entered into the
Agreement for the sale to Stagecoach of 20,000,000 Citybus
Shares at HK$1.95 per share. Separately, on 17 January
1999, CBP (a wholly-owned subsidiary of Citybus) entered
into a deed pursuant to which CBP's obligations and
liabilities in respect of an earlier proposed acquisition
of a property at Shun Tak Centre were released. On the same
day, a wholly-owned subsidiary of CNT entered into an
agreement for the procurement of the acquisition of the
same property by such CNT subsidiary.

Completion of the sale is expected to take place on 22
January 1999 (or on such other date as the parties may
agree). CNT plans to apply its share of the sale proceeds
for the Sale Shares for its working capital needs.

The Offer Shares, being 558,931,353 Citybus Shares,
represent about 47.75% of the entire issued share capital
of Citybus. The aggregate consideration receivable by GBI
(which is owned as to about 72.86% by CNT) for the Offer
Shares is about HK$1,089.92 million.

The Agreement also provides for the execution by Tedworth
of an undertaking to accept the Offer in respect of
113,450,000 Citybus Shares, representing about 9.69% of the
entire issued share capital of Citybus. Tedworth signed
this undertaking on 18 January 1999.

The Agreement also provides for an indemnity granted by CNT
in favour of Stagecoach and Citybus and its subsidiaries
for any losses (other than a sum of about HK$108.14
million, representing the forfeited deposit and part
payments of about HK$93 million and interest charges
thereon and professional fees capitalised of about HK$15.14
million already incurred by CBP in connection with the
Property Agreement) that may be suffered by them in
connection with the original proposed acquisition by CBP of
the Property pursuant to the Property Agreement and with
the CBP Release.

Pursuant to the CBP Release, upon the forfeiture of the
deposit and part payments of the purchase price for the
Property of about HK$93 million, all obligations and
liabilities of CBP and the sub-seller under the Property
Agreement, Power Sheen, relating to CBP's original proposed
acquisition of the Property under the Property Agreement
were mutually released. Details relating to the original
Property Agreement were contained in Citybus' announcement
dated 3 May 1997.

CNT has agreed to guarantee the obligations of its
subsidiary in the sub-sale and sub-purchase agreement.

CNT's share of the proceeds for the Sale Shares and the
Offer Shares will be about HK$821.52 million. CNT plans to
use the sale proceeds for the partial financing of the
proposed acquisition of the Property, for reducing bank
borrowings (the amount of which CNT will consider in light
of its gearing ratio), for investing in appropriate new
business opportunities for the CNT Group (which CNT is in
the course of identifying), and for its working capital
needs.

For the two financial years ended 31 December 1996 and 31
December 1997, the consolidated audited net profits
attributable to shareholders of the Citybus Group were
about HK$118.77 million and about HK$131.26 million,
respectively. The consolidated audited net asset value of
the Citybus Group as at 31 December 1997 was about
HK$1,148.96 million.


FUJIAN ENTERPRISES: Fujian Enterprises will miss payment
--------------------------------------------------------
The Asian Wall Street Journal reported that Fujian
Enterprises (Holdings) Ltd. will not make any principal
payments on a syndicated loan due Thursday. Interest
payments will be made, however. This debt is the first
installment of a $80 million five year 1997 loan from a
syndicate lead by Hong Kong based investment bank CCIC
Finance.  

Fujian Enterprises is a Hong Kong incorporated window
investment company owned by China's Fujian provincial
government. This company said that it could not repay
principal due to a liquidity crunch affecting Chinese
companies since last year's failure of Guangdong
International Trust and Investment Company, another
investment company owned by a Chinese provincial
government.


GITIC ENTERPRISES: In talks over parent's liquidation
-----------------------------------------------------
The Asian Wall Street Journal reported that GITIC
Enterprises Ltd., a building material and granite supplier
is in talks with bankers over the liquidation of its
parent, the Guangdong International Trust & Investment
Corporation, Hong Kong (Holdings) Ltd. This parent is a
unit of the Chinese Guangdong provincial government owned
Guangdong International Trust & Investment Corporation
(GITIC). The Hong Kong parent was put into provisional
liquidation on October 12 following the October 6 closure
of GITIC by the Chinese government due to the inability to
meet obligations on both its foreign and domestic debt.

GITIC was the official 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.


GUANGDONG INTERNATIONAL: Creditors face bankruptcy maze
-------------------------------------------------------
Foreign creditors in China's biggest-ever corporate
collapse are discovering that the liquidation of state-
owned assets under China's rudimentary bankruptcy law isn't
the transparent exercise of bankruptcies in the West.

Already, one of the main assets of bankrupt Guangdong
International Trust & Investment Co., or Gitic, has been
transferred to another state-owned firm with no details of
payment, if any, disclosed. And creditors worry that more
inside deals are on the way as Beijing strips the former
financial firm of assets the country wants to keep in state
hands.

For years, international bankers and bond buyers handed
money over to China, eager to participate in what still is
the world's faster-growing major economy.

China's decision to send Gitic to bankruptcy court has
caused a radical rethinking of what it means to invest in
China. Under China's 1986 bankruptcy law, foreign creditors
aren't treated any differently from domestic creditors. And
foreigners now lining up in the Gitic creditors' queue are
searching in vain for some clause in the law that gives
them a say over how the company's assets are valued.

Just days before Beijing sent Gitic to bankruptcy court,
China's central bank ordered the company to transfer its
brokerage and investment management business to Guangfa
Securities Co. Like Gitic, Guangfa is owned by the
Guangdong provincial government. Such a transfer would be
voided by bankruptcy courts in the U.S. and most other
developed countries until approved by creditors, lawyers
say. But under Chinese law that's not necessarily so:
Foreigners are barred from owning Chinese securities firms,
which are all state-owned. (Wall Street Journal 22-Jan-
1999)


H B INTERNATIONAL: Reports on negotiations with creditors
---------------------------------------------------------
H B International Holdings Limited has informed the Stock
Exchange of Hong Kong concerning preliminary negotiations
with a consortium and certain bank creditors of the Company
and its subsidiaries in Hong Kong. The preliminary
negotiations relate to a proposal for an equity injection
into the Company by the Consortium and a restructuring of
certain debts of the Group by the Banks.

The Consortium comprises potential investors who are
independent third parties not connected with the directors,
chief executive or substantial shareholders of the Company,
and certain members of the existing management of the
Company who are also existing shareholders of the Company
holding approximately 15.5% of the existing issued share
capital of the Company.

Update on the status of negotiation of the Proposal While
no formal commitments or legally binding agreements have
yet been entered into, the directors of the Company wish to
announce that the Proposal has progressed to the stage
where an outline framework of the Proposal has been agreed
in principle, subject to contract, between the Company, the
Banks and the Consortium. The Company has accordingly
instructed lawyers to draft the necessary documentation to
formalise the full terms of the Proposal. Currently, no
definite timetable has been agreed upon for the signing of
such documentation and therefore the Proposal, which will
in any event be subject to a number of conditions, may or
may not proceed.

In the event of completion of the Proposal, the Consortium
is expected to hold in excess of 35% of the share capital
of the Company. It is anticipated that the Consortium will
apply to the Securities and Futures Commission for a waiver
of the requirement to make a general offer for the
securities of the Company to all shareholders of the
Company pursuant to Note 1 of the Notes on dispensations to
Rule 26 of the Hong Kong Code on Takeovers and Mergers. The
grant of such waiver will be a condition of the Proposal
being implemented.

As at 30 November 1998, there are outstanding amounts of
approximately HK$604 million due to the banks of the Group
and approximately HK$256 million due to trade creditors.
The Banks continue to observe an informal standstill
wherein no capital repayments or payments of interest have
been made to the Banks.

As at the date of this announcement, the Group has
sufficient working capital to maintain its current level of
operation. As at the date of this announcement, there are 5
outstanding writs of summons in which the Company and H B
Electronics Limited (HBE) or HB Annet Company Limited are
named as the defendants, claiming for an aggregate amount
of approximately HK$27 million, US$4.7 million and JPY3.6
million. Writs in which only HBE is named as the defendant
are not included in the above outstanding writs of summons.

As disclosed in the Company's announcement of final results
for the year ended 31 July 1998 dated 11 December 1998, HBE
has been put into voluntary winding up under section 228A
of the Companies Ordinance, Chapter 32 of the laws of Hong
Kong Special Administrative Region of the People's Republic
of China. The notices of the commencement of liquidation
and appointment of provisional liquidators have been
published in the Gazette on 11 December 1998 and the
creditors meeting of HBE has been held on 7 January 1999.
(Stock Exchange of Hong Kong 22-Jan-1999)


HK DAILY NEWS: Emporer decreases shareholding
---------------------------------------------
Hong Kong Daily News Holdings Limited has noted the recent
decrease in the price and the increase in the trading
volume of the shares of the Company and wish to inform the
investors that the Board was informed by Emperor
International Holdings Limited, its substantial shareholder
that EIHL had disposed of 234.5 million shares of the
Company in the market today. The shareholding of EIHL in
the Company was accordingly reduced from 73.31% to 64.31%.

The Board was also informed by EIHL that EIHL may or may
not further reduce its shareholding in the Company. In the
meantime, investors should exercise caution in dealing in
the shares of the Company. (Stock Exchange of Hong Kong 21-
Jan-1999)


HSBC HOLDINGS: Earnings seen falling 30% with Asian losses
----------------------------------------------------------
HSBC Holdings plc, the UK's biggest bank, will write off       
US$1.8 billion (S$3 billion) in Asian loans, driving
earnings down by as much as 30 per cent, analysts said.  
The slump, due to currency devaluations and a regional
recession which has crimped companies' abilities to make
payments, will drive the bank's Asian bad loan provisions
up 200 per cent, analysts said.

The bank is also facing "huge losses" on a US$3 billion
Thai loan portfolio, the Asian Wall Street Journal
reported, citing unnamed sources at the bank. HSBC, which
reports 1998 earnings on Feb 22, declined comment.

"There are a lot of sources for negative numbers that could
have emerged, and now they are emerging," said Tan Bong
Loo, regional bank analyst for ABN Amro Asia Ltd in
Hongkong.

He said the bank will be taking hefty provisions on loans
to Thailand, which analysts estimate are about US$2.3
billion, or about one per cent of the bank's total lending.
Thailand is fighting its deepest recession in three
decades. The baht, devalued in July 1997, is down 32 per
cent since then and stock and property prices have tumbled
by as much as half.

While analysts estimate HSBC has already taken hefty
provisions on its Thai lending, the bank faces similar
problems in Hongkong and China -- where it has total loans
of about US$70 billion. (Bloomberg and Singapore Business
Times 22-Jan-1999)


LAND GROUP: Land Group head's arrest hurts ailing firm
------------------------------------------------------
The Asian Wall Street Journal cited Chinese media reports
that the founder of the Land Group has been arrested, along
with several other Land executives, on January 6 by the
Public Security Bureau in the Chinese central city of
Wuhan. Mou Qizhong started and managed the Land Group,
which manages commercial trade-related deals in a variety
of businesses.  

The Land Group also reportedly owes an estimated $48
million to banks and other creditors, and has stopped
paying employees, plus it hasn't serviced its debts in
several years, according the article. One of the company's
creditors is also reported to be the Bank of China's Wuhan
branch.  

The article reported that Land employees speculate that Mr.
Mou has been detained for failing to pay back loans, and
Beijing based banking sources said that Land's current
condition is very poor.


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

INTI INDORAYON UTAMA: Duff & Phelps reaffirms rating
----------------------------------------------------
Duff & Phelps Credit Rating Co. (DCR) reaffirmed its 'CCC'
(Triple-C) rating of PT Inti Indorayon Utama's (Indorayon)
senior notes. The rating remains on Rating Watch--Down.
DCR's rating reflects the possibility of future periodic
disruptions in Indorayon's operation caused by social
discord with the local community. The situation is
exacerbated by the worsening law and order in Indonesia
resulting from an unstable political condition.

Indorayon also has limited financial flexibility, as
approximately US$18.5 million of interest payments are due
in March-April 1999, while a US$150 million put option on
its U.S.-dollar guaranteed notes is due March 29, 1999.
Consequently, there is a high probability that payment of
interest due on the senior notes may be delayed in the
foreseeable future.

Although Indorayon has been able to meet its interest
payments on a timely basis, the very difficult operating
environment combined with weak global demand for pulp and
rayon, and the company's limited financial flexibility will  
challenge Indorayon's ability to continue meeting its debt
obligations on time.

The planned spin-off of Indorayon from its parent (NYSE-
listed APRIL) will give Indorayon's management more focus
on its core businesses and more flexibility in
restructuring its existing debt. The spin-off, which was
approved by APRIL's shareholders and APRIL's floating-rate
notes (FRN) holders on January 15, 1999, will put
Indorayon's majority shares under direct ownership of the
Tanoto family (the founding family of APRIL Group). DCR
will closely monitor any development with regard to
Indorayon's operation and debt restructuring plan. (Duff &
Phelps Credit Rating Co. 22-Jan-1999)


=========
J A P A N  
=========

DAI-ICHI KANGYO BANK: Moody's downgrades long-term ratings
----------------------------------------------------------
Moody's Investors Service has downgraded the long-term
credit ratings of Dai-Ichi Kangyo Bank (DKB) and the
Industrial Bank of Japan (IBJ), the U.S. credit rating
agency's Japanese unit said Friday.

Moody's lowered DKB's long-term deposit rating to Baa1 from
A3 and the bank's issuer rating to Baa1 from A3, while
IBJ's long-term deposit rating was lowered to Baa1 from A3
and its financial strength rating to E-plus from D. (Kyodo
News 21-Jan-1999)


LONG TERM CREDIT: Daido Mutual to buy investment trust unit
-----------------------------------------------------------
Daido Mutual Life Insurance Co. has decided to acquire the
investment trust subsidiary of the Long-Term Credit Bank of
Japan (LTCB), which is now under temporary state control,
industry sources said Thursday. Daido Mutual, a midsize
life insurance company based in Osaka, is expected to make
an official announcement for the acquisition of LTCB
Investment Trust Management Co. after completing the due
procedures, the sources said. The cost of acquiring the
Tokyo-based LTCB unit is estimated at 2.8 billion yen.

The nationalized LTCB has been trying to sell its
subsidiaries and affiliates, hoping to find buyers within
the current fiscal year, which ends March 31, as part of
its restructuring efforts, the sources said. The Daido-LTCB
deal will be the first case where the buyer has been
selected, the sources said.

Established in 1980 and owned 93% by the LTCB group, LTCB
Investment Trust Management held 228.4 billion yen in
balance of assets it manages at the end of last September,
making it a midsize investment trust operator in Japan. All
employees of LTCB Investment, numbering around 40, will be
retained after the acquisition, the sources said.

On LTCB's sale of group companies, GE Capital Corp. of the
United States is also in talks to buy the leasing business
of Japan Leasing Corp., a failed LTCB affiliate, the
sources said. (Kyodo News 22-Jan-1999)


MITSUBISHI TRUST: Moody's cuts Mitsubishi Trust's ratings   
---------------------------------------------------------
The Asian Wall Street Journal Reported that Moody's
Investor Service Inc. has downgraded ratings of the
Mitsubishi Trust & Banking Company. The ratings cut reflect
concern about Mitsubishi Trust's financial situation
becoming unstable without external support. The ratings
affected are the long-term senior unsecured debt from Baa1
to Baa2, senior debt ratings of financial subsidiaries from
Baa1 to Baa2, subordinated debt ratings of financial
subsidiaries from Baa2 to Baa3, and the financial strength
rating from D to E+.


NIPPON CREDIT: IBJ shareholder to sue former management
-------------------------------------------------------
A shareholder of the Industrial Bank of Japan (IBJ) is
preparing a lawsuit seeking damages from the bank's former
management over an investment in Nippon Credit Bank (NCB)
that is expected to be completely lost, a lawyer said
Friday. In July 1997, IBJ, along with other private-sector
banks, put up 210.6 billion yen in capital for
restructuring NCB at the call of the government.
Separately, the Bank of Japan, the central bank, also
invested 80 billion yen.

These equity investments in NCB are likely to be lost as
NCB has been judged to be in a capital deficit and placed
under government control since December last year.

The shareholder will shortly send a request to IBJ asking
it to seek damages from the bank's management at the time,
said Hideto Iida, a lawyer representing the shareholder.

If IBJ does not file a suit against the management, the
shareholder intends to lodge a lawsuit with the Tokyo
District Court on behalf of the company, probably in March,
the lawyer said. (Kyodo News 21-Jan-1999)


NISSAN MOTOR: Seeks 30% equity stake from DaimlerChrysler
---------------------------------------------------------
Nissan Motor Co., Japan's second-largest automaker, will
ask DaimlerChrysler AG for an infusion of capital amounting
to up to a 30 percent equity stake, a major Japanese
newspaper reported Friday. DaimlerChrysler co-chairman
Juergen Schrempp, who arrived in Japan on Thursday, is to
hold talks with Nissan President Yoshikazu Hanawa as early
as Friday to discuss a possible deal, the Asahi newspaper
said.

Nissan already has expressed an interest in forming an
alliance with an overseas partner in a step to restructure
its troubled business. In addition to DaimlerChrysler,
Renault SA of France and Ford Motor Co. of the United
States also have been reported to be potential suitors.

The newspaper said Nissan will solicit a capital investment
of $1.7 billion to $2.7 billion from DaimlerChrysler,
roughly equivalent to a 20 percent to 30 percent stake.

A Nissan spokesman contacted early Friday was unable to
confirm the report.

Nissan has been in talks with Daimler-Benz AG, the German
automaker which acquired Chrysler Corp. in 1998, over the
sale of an equity stake in the Nissan Motor's truck-making
subsidiary, Nissan Diesel, for more than a year.

Nissan is struggling to survive under a debt load totaling
an estimated $22.2 billion. The company has lost money in
five of the past six years, and saw its U.S. sales decline
14 percent last year the largest drop of any automaker. (AP
Online 21-Jan-1999)


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

DAEWOO ELECTRONICS: Officials close in on swap
----------------------------------------------
Samsung and Daewoo are reportedly on the verge of
finalizing the deal for swapping Samsung Motors for Daewoo
Electronics following a surprise meeting between their
respective owners Thursday. Lee Hun-jai, chairman of the
Financial Supervisory Board, said yesterday that Samsung's
Lee Kun-hee and Daewoo's Kim Woo-choong are expected to
meet again soon to narrow their differences over the
corporate swap.

One bone of contention is that Samsung wants Daewoo not
only to rehire all of its workers at the automobile
subsidiary, but also to continue producing the SM5 series
of passenger cars even after the swap.

The two companies have agreed to allow Deloitte Touche
Tohmatsu to evaluate their financial status as part of
efforts to determine exactly how the swap can take place,
but such differences have hindered progress. (Korea Times
21-Jan-1999)


SAMSUNG MOTORS: Official close in on swap
-----------------------------------------
Samsung and Daewoo are reportedly on the verge of
finalizing the deal for swapping Samsung Motors for Daewoo
Electronics following a surprise meeting between their
respective owners Thursday. Lee Hun-jai, chairman of the
Financial Supervisory Board, said yesterday that Samsung's
Lee Kun-hee and Daewoo's Kim Woo-choong are expected to
meet again soon to narrow their differences over the
corporate swap.

One bone of contention is that Samsung wants Daewoo not
only to rehire all of its workers at the automobile
subsidiary, but also to continue producing the SM5 series
of passenger cars even after the swap.

The two companies have agreed to allow Deloitte Touche
Tohmatsu to evaluate their financial status as part of
efforts to determine exactly how the swap can take place,
but such differences have hindered progress. (Korea Times
21-Jan-1999)


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

RENONG: Renong's Prolink fails to pay RM41m in interest
-------------------------------------------------------
Renong Bhd, Malaysia's largest industrial group, said        
yesterday its property unit missed interest payments
totalling 41.4 million Malaysian ringgit (S$18.3 million)
as the nation's recession takes its toll.

Prolink Development Sdn's default -- on interest payments
due to an undisclosed number of banks -- may lead to
lenders seeking repayment on outstanding principal amount
of RM616.3 million. That, in turn, will result in a "cross-
default" of the principal of Prolink's other loans worth
RM85 million.

"If the lenders were to request for immediate payment,
Prolink will not be able to meet the obligation given its
existing financial position," Renong said in a statement.

Yesterday's disclosure isn't surprising. In October, Renong
missed payments of RM12 million in interest and guarantee
fees on two loans from several banks, effectively
defaulting on its other loans. The Renong group has debts
of RM20 billion.

Renong, which owns businesses in financial services, oil
and gas, public transport systems, hotels,
telecommunications and construction, lost RM794.1 million
in the year ended June 30, compared with a profit of
RM469.5 million a year ago. Renong said it is seeking the
assistance from the Corporate Debt Restructuring Committee.
(Bloomberg and Singapore Business Times 22-Jan-1999)


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

PHILIPPINE AIRLINES: PAL owner quits management
-----------------------------------------------
The Asian Wall Street Journal reported that Mr. Lucio Tan,
who owns 70 percent of the Philippine Airlines (PAL) has
relinquished direct management control the airline as part
of a deal to get more time from creditors to work out a
rehabilitation plan. However, Tan will retain his official
post as chairman.  

Aviation sources cited said that this move is certain to
comfort PAL's creditors, although not very much. The
article also said that PAL plans to make an initial debt
repayment by the end of January to forestall the threat of
its aircraft being repossessed. PAL's biggest creditor is a
consortium of European financial institutions that it owes
$1.2 billion.

The U.S. Export-Import Bank is owed $400 million by PAL.

The new chief foreign advisor of the Philippine Airlines
(PAL) is now preparing a reorganization of the company
designed to convince creditors that the airline is really
going to change. The details of this plan are scheduled to
be released in a few days. The foreign advisory team has
also told PAL employees that the new corporate structure
should be in place by mid-March.   


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

ALPHATEC: Bank urges $10m injection to revive Alphatec
------------------------------------------------------
Bangkok Bank, one of the major creditors of the debt-ridden
Alphatec Electronics Plc, has proposed that creditors
inject US$10 million of fresh capital into the company in a
bid to rehabilitate the electronics firm. However, Bangkok
Bank's proposal made at the creditors meeting yesterday,
was unofficially opposed by many creditors, particularly
the state-owned Krung Thai Bank, whose loans to Alphatec
account for 26% of the total $373 million debt.

The opposing creditors said the proposed injection would
only increase creditors' financial burden. An official
resolution by the creditors on the future of Alphatec will
be made at a meeting next Wednesday.

Last month, PricewaterhouseCoopers, the creditor's
financial consultant, proposed a debt restructuring plan
for Alphatec in which a new offshore holding firm would be
established with a local subsidiary to manage the firm's
assets. Under the plan, AIG, a US financial services firm,
and Investment AB, parent company of Swedish telecom firm
Ericsson, would invest $40 million in exchange for 80% of
shares in the new firm. The remaining 20%, or about $10
million, will be held by Alphatec creditors through a debt-
for-equity swap.

However, Bangkok Bank yesterday proposed that the holdings
by creditors through the debt-for-equity swaps should be
equivalent to 17% or $8.5 million. The 3% difference would
be offered to creditors which inject the fresh capital
under the plan.

Despite facing opposition from some other creditors, an
informed Bangkok Bank source said the bank would submit its
proposal to next week's creditor meeting for approval.
"It is merely a proposal of additional details, while the
main principle remains unchanged. Creditors will have to
vote whether to agree to the principle of the restructuring
plan," said an executive of Credit Agricole Indosuez, also
a creditor of Alphatec. The main principle, or proposal,
was the establishment of an offshore holding company to
manage Alphatec's assets, he added.

Willem de Vries, chief executive officer of Alphatec, said
if the meeting rejected the debt restructuring plan, and
the court ordered the company to go into bankruptcy and
liquidate assets, it would petition as the firm was still
operating at 35% production capacity and remained
profitable even though it was unable to service its debts.
(Bangkok Post 22-Jan-1999)


BANK OF ASIA: Has regulators' blessing
--------------------------------------
Bank of Asia will not have to sign an agreement on its
recapitalisation plan with the Bank of Thailand, assistant
governor Tarisa Watanagase said yesterday. She said the
bank's lending target of 32% this year had caused some
concerns among regulators.

But Bank of Asia, 75% held by Dutch bank ABN Amro, had no
problems in terms of capital adequacy, and would not be
required to sign a recapitalisation agreement. The central
bank said last week that Siam Commercial Bank, Nakornthon
Bank and Krung Thai Bank would have to sign commitments
with regulators about their capital plans to cover
operations through mid-year. (Bangkok Post 22-Jan-1999)

  
HOUR GLASS: Change in business structure
----------------------------------------
The Hour Glass (THG) is changing the shareholding structure       
of its business in Thailand to give it greater control over
the policies and directions of its Thai operations. The
company said yesterday it had formed a holding company in
Thailand called The Hour Glass Holding (Thailand) Co Ltd,
in which it owns 49 per cent. The remainder is owned by
Thai shareholders, it said.

The holding company will take over THG's 49 per cent stake
in The Hour Glass Thailand Co Ltd, which runs its watch
retail operations in Thailand, at par. THG's stake is held
through its wholly-owned Hongkong unit. The new unit will
also buy the remaining 51 per cent of the Thai operations
from THG's Thai partner for a maximum of 6.05 million baht
(S$279,000).

The transaction is not expected to have any material impact
on the net assets and earnings per share of the company for
the year ending March 31, 1999. (Singapore Business Times
21-Jan-1999)


KASET THAI SUGAR: Creditors' request wins court approval
--------------------------------------------------------
The Civil Court yesterday approved a plan of bank creditors
of three major sugar refineries -- Thai Ekkaluck Sugar Co,
Kaset Thai Sugar Co and Ruam Phol Industry Nakorn Sawan Co
-- to restructure a combined debt of Bt15 billion under
court supervision.

The three refineries, which hold a combined sugar export
quota of 11 to 13 per cent of Thailand's total exports, are
among the country's largest sugar producers. The three are
controlled by Siriviriyakul family whose main business
interests are in the provinces.

The business rehabilitation plan for the three refineries
of the Siriviriyakul group was filed on Dec 30, 1998, by
Krung Thai Bank, Thai Farmers Bank, Bangkok Bank, BankThai
and Bank of Ayudhya.

Creditors agreed that the three sugar producers were still
economically viable so they sought court approval to
restructure the debts under the business rehabilitation
law.

The banks also agreed to provide new loans for the three
firms, with the first debtor getting Bt810 million; the
second debtor, Bt1.69 billion and the third debtor, Bt697
million, so they can continue their business, especially
during this period which is the start of the annual sugar
cane milling season.

The court was also told that the sugar companies should be
rehabilitated since asset liquidation would not result in
enough money to pay back the creditors. In addition, the
companies have a combined workforce of 3,290 whose jobs
will be affected if the companies are not rehabilitated.
The creditors have named South Sathorn Planners Co as the
planner for the three debtors. (The Nation 22-Jan-1999)


RUAM PHOL INDUSTRY: Creditors' request wins court approval
----------------------------------------------------------
The Civil Court yesterday approved a plan of bank creditors
of three major sugar refineries -- Thai Ekkaluck Sugar Co,
Kaset Thai Sugar Co and Ruam Phol Industry Nakorn Sawan Co
-- to restructure a combined debt of Bt15 billion under
court supervision.

The three refineries, which hold a combined sugar export
quota of 11 to 13 per cent of Thailand's total exports, are
among the country's largest sugar producers. The three are
controlled by Siriviriyakul family whose main business
interests are in the provinces.

The business rehabilitation plan for the three refineries
of the Siriviriyakul group was filed on Dec 30, 1998, by
Krung Thai Bank, Thai Farmers Bank, Bangkok Bank, BankThai
and Bank of Ayudhya.

Creditors agreed that the three sugar producers were still
economically viable so they sought court approval to
restructure the debts under the business rehabilitation
law.

The banks also agreed to provide new loans for the three
firms, with the first debtor getting Bt810 million; the
second debtor, Bt1.69 billion and the third debtor, Bt697
million, so they can continue their business, especially
during this period which is the start of the annual sugar
cane milling season.

The court was also told that the sugar companies should be
rehabilitated since asset liquidation would not result in
enough money to pay back the creditors. In addition, the
companies have a combined workforce of 3,290 whose jobs
will be affected if the companies are not rehabilitated.
The creditors have named South Sathorn Planners Co as the
planner for the three debtors. (The Nation 22-Jan-1999)


THAI DANU BANK: Posts 8b baht loss on bad loan provisions
---------------------------------------------------------
DBS Bank's majority controlled Thai Danu Bank lost 8.08
billion baht (S$371 million) last year as its operations
continued to face bad debts. The loss prompted analysts to
say its Singapore parent would have to pump in more funds
this year.

The bank suffered a fourth-quarter operating loss of 371
million baht before provisions of 1.9 billion baht, which
took total fourth-quarter losses to 2.3 billion baht. This
was a big jump from the third quarter's 491 million baht
loss. Analysts cite higher bad loan provisions for the
losses, which were a far cry from the 28.2 million baht
profit made in 1997. Losses this year, though still
substantial, are expected to be smaller.

Andrew Maule, analyst at ABN Amro Asia Securities, said
Thai Danu incurred an operating loss for Q4 and the full
year because its net interest income fell short of
operating expenses.

Debt-laden Thai banks have up till the end of this month to
sign memoranda of understanding with the central bank on
their recapitalisation plans to cope with crippling non-
performing loans.

To stem the losses, Thai Danu executive vice-president
Chaiwat Uthaiwan said operations would be reorganised this
month based on banking systems adopted in Singapore.
(Singapore Business Times 22-Jan-1999)


THAI EKKALUCK SUGAR: Creditors' request wins court approval
-----------------------------------------------------------
The Civil Court yesterday approved a plan of bank creditors
of three major sugar refineries -- Thai Ekkaluck Sugar Co,
Kaset Thai Sugar Co and Ruam Phol Industry Nakorn Sawan Co
-- to restructure a combined debt of Bt15 billion under
court supervision.

The three refineries, which hold a combined sugar export
quota of 11 to 13 per cent of Thailand's total exports, are
among the country's largest sugar producers. The three are
controlled by Siriviriyakul family whose main business
interests are in the provinces.

The business rehabilitation plan for the three refineries
of the Siriviriyakul group was filed on Dec 30, 1998, by
Krung Thai Bank, Thai Farmers Bank, Bangkok Bank, BankThai
and Bank of Ayudhya.

Creditors agreed that the three sugar producers were still
economically viable so they sought court approval to
restructure the debts under the business rehabilitation
law.

The banks also agreed to provide new loans for the three
firms, with the first debtor getting Bt810 million; the
second debtor, Bt1.69 billion and the third debtor, Bt697
million, so they can continue their business, especially
during this period which is the start of the annual sugar
cane milling season.

The court was also told that the sugar companies should be
rehabilitated since asset liquidation would not result in
enough money to pay back the creditors. In addition, the
companies have a combined workforce of 3,290 whose jobs
will be affected if the companies are not rehabilitated.
The creditors have named South Sathorn Planners Co as the
planner for the three debtors. (The Nation 22-Jan-1999)


TISCO: To issue one billion shares at Bt10
------------------------------------------
Directors of Tisco have approved the issue of one billion
new preferred shares, priced at 10-baht par value. The
issue will raise the finance company's registered capital
by 10 billion baht to 11.002 billion.

Tisco executive Oranuj Adisaksrikul said the capital
increase would allow the company to apply for a new
restricted bank license in the future. Restricted banks are
similar to commercial banks, but cannot operate cheque-
clearing services. Mrs Oranuj said restricted banks offered
stronger potential in the future than finance companies.

While Tisco could remain a finance company, playing off its
strengths in investment banking and hire-purchase,
upgrading to a restricted bank would make it more
competitive in the future. (Bangkok Post 22-Jan-1999)
  

S U B S C R I P T I O N   I N F O R M A T I O N

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

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