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             A S I A   P A C I F I C      

      Thursday, January 28, 1999, Vol. 2, No. 19

                    Headlines


* C H I N A   &   H O N G   K O N G *

CITIC PACIFIC: Citic rejects talk of debt problems
FUJIAN INTERNATIONAL: Fitic secures payment deal
GUANGDONG ENTERPRISES: GDE arm takes loss
GUANGDONG INTERNATIONAL: Banks wary of debt restructuring  
GUANGZHOU INTERNATIONAL: Guangzhou may consider liquidation

LAI SUN GARMENT: Issue of rights shares 96pc subscribed
MING FUNG GROUP: Probe claims chief misused company cash
SING TAO HOLDINGS: Approval for Aw share sale delayed


* I N D O N E S I A *

BAKRIE & BROTHERS: May may swap debt of $1.15bn


* J A P A N *

HASEKO CORP: Says banks will forgive loans
JAPAN ENERGY: Plan to boost earnings by 30 b. yen    
MARUBENI CORP: To reduce consolidated total assets
MATSUSHITA ELECTRIC: Sees profit fall 48% in FY98
MAZDA MOTOR: Mazda debt now junk bond grade

RENOWN: To sell head office site for 9.5 b. yen


* K O R E A *

HANBO IRON & STEEL: Due diligence begins in February
KIA MOTORS: HHI removed from list of investors
KOREA FIRST BANK: Plans to write off bad loans
KOREAN HEAVY: Privatization delayed indefinitely
SAMSUNG MOTORS: Workers renege on plan to return to work


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

PHILIPPINE AIRLINES: Deutsche Bank files PAL protest
PHILIPPINE AIRLINES: Will make payment to placate creditors
PILIPINO TELEPHONE: May need protection from its creditors


* T H A I L A N D *

BANCHANG GROUP: SET warns of possible delisting
BIJOUX HOLDINGS: SET warns of possible delisting   
CHRISTIANI & NIELSEN: SET warns of possible delisting
EASTERN WIRE: Holders seek SET audit of Eka Holdings
GOLDEN LAND: To issue new shares

JULDIS DEVELOPMENT: SET warns of possible delisting
NTS STEEL: Creditors seek more conditions before approval
RATTANA REAL ESTATE: SET warns of possible delisting
SEAMICO SECURITIES: B75m in Seamico paper converted
SIAM CHEMICALS: SET warns of possible delisting

STAR BLOCK: SET warns of possible delisting
THAI GRANITE: SET warns of possible delisting
UNIVEST LAND: SET warns of possible delisting
WATTACHAK GROUP: SET warns of possible delisting


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

CITIC PACIFIC: Citic rejects talk of debt problems
--------------------------------------------------
According to the South China Morning Post, Citic Pacific
yesterday dismissed investors renewed worries over the
company's financial health, saying it had no difficulty in
meeting debt repayments. This came as rumors hit the market
that creditors of the mainland-backed conglomerate were
forcing the company to repay loans. Citic Pacific's stock
was also hit by concerns over the financial health of its
parent Citic Beijing, as well as impact of a possible yuan
devaluation on the company.

Citic Pacific's managing director said most of Citic
Pacific's credit facilities were long-term and no facility
was due to mature this year. He said he had received
assurance from Citic Beijing that the Beijing firm was in a
sound financial position. He also said Citic Pacific's
revenue generated from infrastructure amounted to $6
billion last year, and income from infrastructure and other
sectors was predicted to be not less than $5 billion this
year.

Analysts gave the company a vote of confidence yesterday.
Sanjeet Devgan, Prudential-Bache International's Hong Kong
research head said Citic Pacific's financial position was
stable with a steady cash flow. He believed Citic Pacific
was not being forced by creditors to repay debts but warned
that its cost of funding might increase due to market
conditions.


FUJIAN INTERNATIONAL: Fitic secures payment deal
------------------------------------------------
According to the South China Morning Post, Fujian
International Trust and Investment Corp (Fitic) yesterday
shrugged off worries about its financial position, saying
it had rescheduled the repayment of about US$20 million in
short-term loans.

Fitic vice president said the loans have been delayed for
several months but with rescheduling in place the first
repayment is now due in April. The firm's long-term foreign
debt stood at about US$200 million with the first repayment
not due until 2006. The company has net assets of more than
one billion yuan. It has cashed in more than 100 million
yuan from the sale of its interest in a cement firm.

He said the firm had run into liquidity problems after
receiving demands from banks to repay about $30 million in
short-term loans following the closure of Guangdong
International Trust and Investment Corp in October. This
came soon after Fitic repaid $180 million in loans in
September.

Part of the $30 million was repaid while the rest was
rescheduled. The $30 million loan represented not more than
20 per cent of what banks had previously offered to provide
the firm. He also said there's no need for the firm to ask
for assistance from the provincial government to solve its
liquidity problem.


GUANGDONG ENTERPRISES: GDE arm takes loss
-----------------------------------------
According to the South China Morning Post, Guangdong
Investment sold a building at Repulse Bay to Finnex
development at $144 million, a loss of $186 million,
having bought it for $330 million in August 1997. The
company has also put on sale a residential commercial site
at Hollywood Road, Sheung Wan.

Property consultants estimated the site would generate
about $130 million. Four to five bids were made before the
tender closed last week. Hit by the fallout from financial
problems at parent Guangdong Enterprises (Holdings) and
other Guangdong companies, Guangdong Investment has been
trying to reduce debt.


GUANGDONG INTERNATIONAL: Banks wary of debt restructuring  
---------------------------------------------------------
Hong Kong bankers reacted with scepticism to comments by
China's central bank governor on Wednesday that debt of
failed Guangdong International Trust and Investment Corp
(GITIC) could be restructured.

"How can you restructure GITIC's debt when GITIC has been
shut down and declared bankrupt? Who will operate its
assets?" asked a Hong Kong-based foreign banker.

In a news conference, People's Bank of China Governor Dai
Xianglong said lenders would be given the opportunity to
offer proposals to restructure GITIC's debt at a creditors'
meeting in late April.

Some bankers said Dai's remarks on Wednesday indicated
China was hinting at room for negotiation on debt
repayment, but others said the situation remained muddled.

Some GITIC assets were still operational and, if sold,
could generate cashflow for a debt restructuring, some
bankers said.

"GITIC has some assets such as plants, equipment or
subsidiaries which could still operate. China could appoint
a trustee to supervise these assets for repaying the
banks," a banker said.

Bankers also said a debt-to-equity swap was possible, where
creditors would become shareholders of the assets.

One source said the court could declare that letters of
support issued by the Guangdong government for some GITIC
loans had legal effect. Then, a restructuring could take
place with a guarantee from the government. However, this
was deemed unlikely, especially since Dai emphasised on
Wednesday that registered foreign debt was not equivalent
to a guarantee from the government.

Perhaps an even greater problem was getting all of GITIC's
135 foreign creditors to agree unanimously to a
restructuring, bankers said. Some bankers said they
preferred a quick resolution, so provisions could be made
and GITIC could set the precedent for other troubled state-
owned entities. (Reuters 27-Jan-1999)


GUANGZHOU INTERNATIONAL: Guangzhou may consider liquidation
-----------------------------------------------------------
Guangzhou Vice Mayor Shen Bainian said Wednesday the
Guangzhou municipal government is examining the financial
situation of the troubled Guangzhou International Trust and
Investment Corp. (GZITIC) and hinted at its possible
liquidation. Shen said the debt of GZITIC, a fund-raising
vehicle of the city, does not outweigh its assets in the
account books but the financial situation might be
different after all subsidiaries' financial information is
taken into account.

The vice mayor, speaking to reporters in Hong Kong after a
briefing for foreign investors, said, "If the company's
debts severely outweighed its assets, the company, of
course, would seek bankruptcy."

A decision on how to handle GZITIC will be made after the
government finishes the financial examination, which is
expected to take several months, Shen said.

According to preliminary estimates, GZITIC has debts of
about 19 billion yuan (about 2.3 billion U.S. dollars),
including 400 million dollars of outstanding foreign debt,
and assets of some 20 billion yuan (2.4 billion dollars),
Shen said.

GZITIC's troubles come in the wake of the collapse of the
Guangdong provincial government's fund-raising vehicle,
Guangdong International Trust and Investment Corp. (GITIC).

Guangzhou is the capital city of Guangdong Province.
(Kyodo News 27-Jan-1999)


LAI SUN GARMENT: Issue of rights shares 96pc subscribed
-------------------------------------------------------
According to the South China Morning Post, Lai Sun Garment
(International) said its controversial $575 million four-
for-one rights issue had been 96.9 per cent subscribed. The
company is issuing 1.15 billion shares at 50 cents each. As
a result of the issue, the company's controlling
shareholder, the Lim family, will see its stake rise from
41.61 per cent to 42 per cent. Minority shareholders have
been unhappy with Lai Sun's frequent cash calls.


MING FUNG GROUP: Probe claims chief misused company cash
--------------------------------------------------------
According to the South China Morning Post, at least $107.35
million was taken from Ming Fung Group companies to bolster
the personal finances of majority shareholder and managing
director Chan Kwong-hung and his family, a probe by
liquidators has revealed.

Liquidators KPMG Peat Marwick took legal action to recoup
the numerous payments made over a period of four months.
According to the liquidators, $181,345 was paid by Ming
Fung Bullion -- the group's leveraged foreign-exchange arm
-- to cover the tax bill of Mr Chan's son.

Mr Chan was arrested, charges were laid against him and an
investigation is still under way. Three of the group's four
flagship companies were named as plaintiffs in writs filed
at the High Court yesterday.

Stockbroking arm Chark Fung Securities, Ming Fung Bullion
and margin financing unit Kee Fung Sing International
Finance are listed as companies from which funds are
transferred. The liquidators are suing on their behalf.


Between January 1 and May 26 last year, inspection of the
current accounts of the companies showed discrepancies in
withdrawals. Copies of cheques and deposit slips revealed
that sums were advanced to companies owned by Mr Chan or
his family.

A total of $5.6 million was paid by Chark Fung and Kee Fung
to Ming Fung Goldsmith, a company wholly owned by Mr Chan.
A further $53.74 million was advanced by Chark Fung, Ming
Fung Bullion and Kee Fung to Lau Miu-king, Mr Chan's wife.
The three firms also paid $48.17 million to Link Standard
of which both Mr Chan and his wife were directors and
shareholders.


SING TAO HOLDINGS: Approval for Aw share sale delayed
-----------------------------------------------------
According to the South China Morning Post, the deadline for
the approval of the sale of 23 per cent stake in Sing Tao
Holdings totalling $115.8 million by company chairman Sally
Aw Sian to Dublin-listed funds China Enterprise Development
Fund (CEDF) and The Investment Co of China (ICC) has been
Extended until Monday while a judge decides whether to have
the deals legitimised. Sing Tao last night said the deals
were still expected to be completed by February 15 despite
the extension.

According to the Hong Kong Standard, Ms Aw earlier clinched
a deal to sell an 11.13 per cent interest in Sing Tao to
ICC through its vehicle, Pacific Victory, and 11.87 per
cent to CEDF, through Hong Kong Sunrise. The stake is being
sold at $1.20 per share. The shares closed at $0.79
yesterday.

Pacific Victory is a wholly-owned subsidiary of ICC, which
is a closed-end private fund listed on the Irish Stock
Exchange. ICC shareholders include US, European and Hong
Kong institutional investors and high net worth
individuals. Shareholders of ICC who hold 5 per cent
or more of its issued share capital include Shellwater &
Co, Netron Consultants, Geosor Corp, Search Pacific, CIR
International and Foreign & Colonial Management Group.


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

BAKRIE & BROTHERS: May may swap debt of $1.15bn
-----------------------------------------------
Bakrie & Brothers, the listed arm of the diversified Bakrie
Group, yesterday agreed in principle with its main
creditors to swap up to $1.15bn in debt for equity, raising
the possibility that it could become the first large
Indonesdian company to restructures its debt.

Chase Manhattan, American Express Bank and Dresdner Bank
were among creditors in Singapore yesterday to agree in
principle to swapping $1.15bn in outstanding loans for 80
per cent of a news holding company with shares in five
Bakrie companies, including 5.3 per cent  of US listed
Iridium. They would also received 30 per cent of the
company's remaining assets.

However, Janpanese banks such as Sanwa and Fuji, also
lenders to Bakrie, were notably absent from yesterday's
meeting.

Bakrie said the agreement covered 80 per cent of
outstanding debt. Bankers said many details had yes to be
negotiated. (Financial Times 27-Jan-1999)

=========
J A P A N  
=========

HASEKO CORP: Says banks will forgive loans
------------------------------------------
Shares of Haseko Corp. rose 13 yen to 53, the most active
stock with more than 21 million shares traded following
reports that its banks are prepared to forgive loans. The
Tokyo Shimbun newspaper reported that Mitsui Trust &
Banking Co. will today formally decide to provide financial
support to the struggling condominium builder. Last month,
Haseko said it would ask banks to forgive 394.2 billion yen
in loans. (Bloomberg 27-Jan-1999)


JAPAN ENERGY: Plan to boost earnings by 30 b. yen    
-------------------------------------------------
Japan Energy Corp. Tuesday announced a stepped-up three-
year restructuring plan aimed at, among other things,
slashing its workforce by some 800 and logging a 30 billion
yen increase in revenue. The plan, implemented from the
start of the current business year last April, calls for
reducing Japan Energy's 3,200-strong payroll to 2,400 by
the end of March 2000 and boosting the firm's earnings by
30 billion yen over March 1998 figures by the end of March
2001 through vigorous cost-cutting efforts, company Vice
President Otaro Sueki said.

To reduce its interest-bearing debt by 200 billion yen from
some 900 billion yen on a consolidated basis at the end of
March 1998, the Tokyo-based firm will put a building and
land tract housing its head office into a trust and sell
beneficiary certificates for the assets to net a group
profit of some 55 billion yen.

It will also raise cash by letting two affiliated companies
go public in a couple of years. They are the semiconductor
operation of GA-TEK Inc. of Ohio and Central Computer
Service of Tokyo.

Japan Energy will also consider having AM PM Japan go
public.

For the current business year to March 31, Japan Energy
expects its recurring loss to grow 18 billion yen on a
parent-only basis from the previous estimate to 25 billion
yen, on sales of 1.24 trillion yen, down from the prior
forecast of 1.36 trillion yen. The company attributed the
poor estimates partly to a decline in the sales volume and
lower crude oil prices. After-tax losses are expected to
grow 14 billion yen from the previous estimate to 19
billion yen. (Jiji Press English News 26-Jan-1999)


MARUBENI CORP: To reduce consolidated total assets
--------------------------------------------------
Major trading house Marubeni Corp. said Wednesday it plans
to reduce its aggregate assets by up to 1.3 trillion yen on
a consolidated basis by March 31, 2001. As a result,
Marubeni's consolidated total assets will be reduced to 6.1  
trillion yen from 7.39 trillion yen for fiscal 1997, which
ended March 31 last year. (Kyodo News 27-Jan-1999)


MATSUSHITA ELECTRIC: Sees profit fall 48% in FY98
-------------------------------------------------
Matsushita Electric Works Ltd. saw pretax profit for the
fiscal year ended Nov. 30 fall 48% year on year to 26.7
billion yen, the firm reported Tuesday. The leading maker
of building materials and lighting equipment attributed its
first drop in profit in five years to weak domestic demand
for housing-related products. The firm's return on equity
ratio fell 2.1 points to 3.0%. While under ordinary
conditions Matsushita Electric Works could expect to see
pretax profit for the year through November increase 20% to
32 billion yen, it would be almost flat without the effects
of the introduction of a new accounting system. (The Nihon
Keizai Shimbun 27-Jan-1999)


MAZDA MOTOR: Mazda debt now junk bond grade
-------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Mazda Motor, a Ford Motor affiliate, has had its
long-term credit rating reduced to "junk" by Moody's
Investors Service amid concern about the slump in car sales
in Mazda's main market, Japan.

Mazda's long-term bonds and other debt ratings were lowered
to Ba1, or below investment grade, from Baa3. The downgrade
affects about US$2.8 billion worth of securities. A junk
rating indicates a borrower may have trouble repaying
debts.

Mazda president James Miller said the action by Moody's
confirmed the company's previous statements that
substantial work is required to further strengthen Mazda's
core business units.

The downgrade is likely to have little impact on Mazda's
financial recovery plans, which began in 1996 when Ford
took a controlling 33.4 per cent stake in the firm.

An analyst said the level of debt repayment will decrease
substantially from next year, and even if the exchange rate
fluctuates, they can maintain some level of cash flow.

As of March 31 last year, Mazda had $1.01 billion in long-
term debt coming due in the year to March 31 and $421
million in the year to March 31 next year. A Mazda
spokesman said the company had no plans to issue new debt
this year. Under Ford direction, Mazda has cut purchased
parts and other costs to boost profits and repay debt.


RENOWN: To sell head office site for 9.5 b. yen
-----------------------------------------------      
Renown will use the profits from the site sale to finance
restructuring measures including disposal of inventories
and the liquidation of a subsidiary, the officials said.
But slumping sales of its products amid the dormant
personal consumption in Japan are expected to leave the
firm with an after-tax loss of 19 billion yen for the
business year that ended on Jan. 31, they said.

To cope with its deteriorating business, Renown is
redoubling rationalization efforts while shutting down some
plants, curtailing its payroll and accepting an official
from Sumitomo Bank, a main creditor bank for Renown, as a
member of its board of directors. (Jiji Press English News
26-Jan-1999)


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

HANBO IRON & STEEL: Due diligence begins in February
----------------------------------------------------
The on-site examination of Hanbo Iron & Steel is expected
to begin from next month.

"Foreign companies which have voiced their intention to
take over Hanbo are likely to start the investigation from
next month,'' said an official of a Hanbo's creditor bank.

In the review, Ispat of the United States and a consortium
of U.S. investing companies are forecast to take part.

Dongkuk Steel Mill is the only domestic firm which has
extended an offer to acquire the bankrupt Hanbo. (Korea
Times 27-Jan-1999)


KIA MOTORS: HHI removed from list of investors
----------------------------------------------
Hyundai Heavy Industries Co. (HHI) has been deleted from
the list of Hyundai subsidiaries that will invest in Kia
Motors and Asia Motors, two firms the Hyundai Group has
taken over. A Hyundai executive said yesterday that HHI has
been deleted from the list as bears no relation to
automobile manufacturing.

But observers believe the deletion is mainly due to demands
by the People's Solidarity for Participatory Democracy
(PSPD) that HHI should not invest in Kia and Asia. On
behalf of minor shareholders, PSPD plans to lodge
complaints during the shareholders meeting slated for
February.

The executive said that four subsidiaries should share the
burden HHI was to bear in the purchase of Kia and Asia, but
said the exact burden has yet to be determined. Hyundai
Motor is expected to bear more as it is an auto maker, he
said.

As part of the corporate restructuring program in the
automobile division, Hyundai said last December that
Hyundai would acquire 40 percent, HHI 20 percent, Hyundai
Industrial Development 15 percent, Inchon Iron and Steel 15
percent, and Hyundai Financial Services Co. 10 percent. It
is highly probable that Hyundai Motor will share more than
half of the payment in the takeover of Kia and Asia.

Meanwhile, Hyundai Merchant Marine, Hyundai Engineering and
Construction, Hyundai Heavy Industries and seven
subsidiaries involved in the North Korean projects, known
collectively as Asan Corp., will take part in the projects,
which are capitalized at 100 billion won. (Korea Times 27-
Jan-1999)


KOREA FIRST BANK: Plans to write off bad loans
----------------------------------------------
The government plans to write off loans extended by Korea
First Bank (KFB) to firms reeling under corporate
restructuring programs. Under the plan, all the loans to
those ailing companies will be transferred to a so-called
"bad bank", which will be created to take over bad loans
from the KFB.

A U.S. financial consortium led by Newbridge Capital and GE
Capital tentatively agreed to take over the troubled KFB at
the end of last year. It was known that the Newbridge-GE
Capital has repeatedly demanded that the government clean
up the KFB to facilitate the acquisition process. An
official at the Financial Supervisory Commission (FSC) said
that all bad loans at the KFB, as well as loans to troubled
corporations benefiting from creditor-led revival plans
will be taken over by the bad bank.

The government has already promised the U.S. investment
fund that it would write off all bad loans, and this will
take place within one year after Newbridge-GE Capital's
takeover of the ailing Korean bank. It has also committed
to writing off parts of the bank's bad loans that occur in
the second year after this foreign acquisition.

The Seoul government and the International Monetary Fund
(IMF) had agreed to auction off the KFB and Seoul Bank by
the end of this month. These two banks were hardest hit by
the Asian financial crisis in late 1997. They were
nationalized last year after the government injected 1.5
trillion won into each bank. (Korea Times 26-Jan-1999)


KOREAN HEAVY: Privatization delayed indefinitely
------------------------------------------------
Despite earlier pledges by top policy makers, including
President Kim Dae-jung, for the privatization of Korean
Heavy Industries & Construction Company (or Hanjung) at an
early date, the program implementation has been delayed for
a considerably long period of time.

According to business sources yesterday, the announcement
on the public bidding for the privatization will be made
sometime late next month at an earliest.

Possible companies that may participate in this bid, such
as Hyundai and Samsung Heavy Industries, have been moving
briskly to acquire Hanjung. The delay so far in the
privitization process has mainly been due to issues related
to the much-diputed Big Deal process, or swap of business
divisions among conglomerates.

Both domestic and foreign companies have already been
engaging in behind-the-scenes competition in order to take
over the gigantic Hanjung, which has a total turnover of
more than 3 trillion won. Samsung has recently set up a
task force team dedicated to the takeover of Hanjung by
Samsung Heavy Industries. Samsung Heavy Industries has
already secured $750 million through a sell-off of its
construction heavy equipment division to Volvo of Sweden
last year and plans to use this money in its bid to acquire
Hanjung.

Hyundai, meanwhile, has been most aggressive in taking over
Hanjung, citing the Hanjung acquisition will further
fortify its competitiveness as the nation's number one
heavy industry company.

However, Hyundai is weighing public opinion in view of the
fact that it has already taken over Kia Motors, and is
slated to acquire LG's semiconductor division. Hyundai is
poised to turn its power generating facilities to Hanjung
in return for receiving stakes in Hanjung.

General Electric of the United States and ABB of Sweden are
also expected to participate in the bidding. (Korea Times
26-Jan-1999)


SAMSUNG MOTORS: Workers renege on plan to return to work
--------------------------------------------------------
The labor union of Samsung Motors Inc. yesterday decided to
shelve their plan to return to work today, contravening the
agreement they reached Sunday. Shelving the plan, the
emergency committee on the big deal said that the "takeover
first and settlement later" stance decided behind the
curtain is quite contrary to the pledge of the management
to carry out big deal plans transparently.

President Kim Dae-jung Monday advised Daewoo and Samsung to
conduct the swap first and then to settle the payment to
reduce possible losses from labor unrest.

The committee decided to shelve its decision to return to
work as the management did not provide a clear answer
regarding guarantees of workers' rights at a labor-
management meeting yesterday afternoon.

Meanwhile, Samsung Motors yesterday closed its branch
offices in Detroit and Frankfurt in connection with the
swap between its automobile business unit and Daewoo's
electronics unit. The branch in Detroit was in charge of
design development and the one in Frankfurt was in charge
of collection of information in the European automobile
industry. The two branches each have 12-13 employees,
including locals. Consequently, Samsung Motors' Tokyo
branch is its only remaining overseas office. (Korea Times
26-Jan-1999)


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

PHILIPPINE AIRLINES: Deutsche Bank files PAL protest
----------------------------------------------------
According to the South China Morning Post, Deutsche Bank,
as representative of the majority of Philippine Airline
(PAL)'s floating-rate note-holders, has filed a protest on
behalf of unsecured creditors against plans by troubled
Philippine Airlines (PAL) to make a large payment to
secured lenders. The bank sent a letter to the Philippine
Securities and Exchange Commission stating its protest and
seeking a meeting with the commission to discuss the
intended payment and other matters.


PHILIPPINE AIRLINES: Will make payment to placate creditors
-----------------------------------------------------------
The Asian Wall Street Journal reported that the Philippine
Airlines (PAL) chief foreign advisor says that the airline
will make an initial payment to major creditors by this
weekend. This will be the first time that PAL has services
its $2.1 billion debt since last July. The precise amount
of this payment has not been specified, and PAL said it was
not prepared to discuss an exact figure.

The article stated that this move is aimed at placating
creditors who will be asked to approve a rehabilitation
plan for PAL. The chairman of the Philippine Securities
Exchange Commission (SEC) also was cited as saying that if
PAL makes a payment to the creditors, these creditors have
committed to sit down in good faith and work out a viable
rehabilitation plan.  

PAL's biggest creditor is a consortium of European
financial institutions that it owes $1.2 billion. The U.S.
Export-Import Bank is also owed $400 million by PAL.

PAL troubles stem from an unfortunate timing of a fleet
modernization program, the Asian currency crisis, and a 22
day pilot strike in June, 1998. The airline actually closed
for 13 days last September, but was reopened after its
union backed down on some demands.  


PILIPINO TELEPHONE: May need protection from its creditors
----------------------------------------------------------
The Asian Wall Street Journal reported that Pilipino
Telephone Company (PILTEL), the mobile-telephone unit of
the Philippine Long Distance Telephone Company, may be
forced to file for a moratorium on its debt payments.  
PILTEL has loans totaling 34 billion pesos, and it could
not make a recent loan payment to Marubeni Corporation of
Japan, one of its major creditors.  

The article stated that most of PILTEL's loans are
unsecured, and that the telephone company is already in
talks with its creditors to restructure its debts. The
article also reported that about one-third of PILTEL's
debt are loans from the Marubeni Corporation, another third
from banks, and the rest in is in the form of convertible
bonds.  

The article cited PILTEL's financial advisor as saying that
PILTEL's interest payments now exceed the company's cash
flow and that it has recently stopped servicing its debts.  
PILTEL's monthly interest charges were estimated to be
about $200 million pesos. The advisor went on to say that a
large portion of the Marubeni loan which is due on Thursday
will not be paid.  

PILTEL, which has the second largest subscriber base in the
Phillipines, has reportedly had trouble with subscriber
fraud and heavy debt payments.  


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

BANCHANG GROUP: SET warns of possible delisting
-----------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist six firms -- Wattachak Group (WAT), Univest Land
(UNIVEST), Thai Granite, Juldis Development (JULDIS),
Banchang Group (Bchang) and Star Block -- face possible
delisting under this ruling. According to the new SET
delisting regulations, the SET will delist listed companies
which fail to turn in its financial statements for four
consecutive quarters. This ruling began being enforced from
September 30, 1998. (Business Day [Thailand] 27-Jan-1999)


BIJOUX HOLDINGS: SET warns of possible delisting   
------------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist Bijoux Holdings (BIJOUX), Christiani & Nielsen
(Thailand) (CNT), Siam Chemicals (S-Chem) for failing to  
appoint an appropriate number of independent directors.
(Business Day [Thailand] 27-Jan-1999)


CHRISTIANI & NIELSEN: SET warns of possible delisting
-----------------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist Bijoux Holdings (BIJOUX), Christiani & Nielsen
(Thailand) (CNT), Siam Chemicals (S-Chem) for failing to  
appoint an appropriate number of independent directors.
(Business Day [Thailand] 27-Jan-1999)


EASTERN WIRE: Holders seek SET audit of Eka Holdings
----------------------------------------------------
Minor shareholders of Eastern Wire Plc, which produces
steel wire for construction, have sought a Stock Exchange
of Thailand audit of Ekka Holdings Co, which recently
tendered an offer to buy their Eastern Wire shares after
acquiring a majority stake of 62.5 per cent from
Jalaprathan Cement Plc.

One of the minor shareholders and a former Eastern Wire
executive who asked not to be named, said they are
suspicious of Ekka Holdings' background because it was just
set up in June 1998 with registered capital of less than
Bt10 million, and has no track record in the steel
industry.

A SET spokesman said a financial institutional which
advises minor shareholders will prepare a report on the
tender offer for minor shareholders who must use their own
judgement.

Eastern Wire offered to buy shares from minor holders from
Jan 1 until Feb 10. The offer price is Bt2 per share.
Eastern Wire reported a net loss of Bt302 million for the
first nine months of 1998, compared with a net loss of
Bt239.25 million in 1997. Revenue declined sharply from
Bt965.20 million in the first nine months of 1997 to
Bt489.32 million in 1998. Administrative expenses in that
period, however, rose dramatically from Bt90.02 million in
1997 to Bt252.10 million last year. (The Nation 27-Jan-
1999)


GOLDEN LAND: To issue new shares
--------------------------------
Golden Land Property Development (GOLD) is mobilizing funds
through allocation of 660 million new shares and 2.4
billion baht worth of debentures, according to the
company's statement.

Of the total new shares, 410 million shares will be sold
through private placement (PP) with the expected price of
10-12 baht apiece, and another 200 million shares to
accommodate conversion of debentures, and the remainder for
conversion of warrants.

The soon-to-be-issued debentures will have a maturity
period not exceeding three years, with a converted price of
12 baht per share. Its capital will be raised to 7.35
billion baht after issuance of the new shares. (Business
Day [Thailand] 27-Jan-1999)


JULDIS DEVELOPMENT: SET warns of possible delisting
---------------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist six firms -- Wattachak Group (WAT), Univest Land
(UNIVEST), Thai Granite, Juldis Development (JULDIS),
Banchang Group (Bchang) and Star Block -- face possible
delisting under this ruling. According to the new SET
delisting regulations, the SET will delist listed companies
which fail to turn in its financial statements for four
consecutive quarters. This ruling began being enforced from
September 30, 1998. (Business Day [Thailand] 27-Jan-1999)


NTS STEEL: Creditors seek more conditions before approval
---------------------------------------------------------
The restructuring of 45 billion baht of debt owed by four
companies under veteran business man Sawasdi Horrungrueng's
NTS Steel group is likely to be delayed, after some of its
creditors requested more conditions before approving the
plan, NTS Vice President Chamni Janchai said.

Sri Racha Harbor (SRH), a seaport operator under the NTS
group, has been requested by its creditors led by Bangkok
Bank (BBL) to appoint an independent auditor to determine
the viability of the plan, even though most of them had
already voted to support the plan.

SRH owes about 2 billion baht with creditors including BBL,
Industrial Finance Corporation of Thailand (IFCT) and Siam
City Bank (SCIB).

The debt restructuring plan had already been submitted to
the Bank of Thailand (BOT) on Monday and is scheduled to be
discussed in the creditors meeting on January 29.

BBL, IFCT and SCIB extended syndicate loans, worth 1
billion baht to SRH. The rest belongs to the Financial
Sector Restructuring Authority (FRA), First City Investment
(FCI), Nakornthon Bank, and several equipment suppliers.

"We wonder why creditors did not propose this condition,
when we [Sri Racha Harbor and creditors] were discussing
the debt restructuring plan last August."

"If creditors agreed with BBL's proposal, it means that the
progress of the plan, on which we have been working during
the past five months, is in vain, Chamni said. "We have to
go through it all over again." He cited that experience
from Sri Racha case causes NTS to be more pessimistic about
debt restructuring of the remaining three companies,
especially NTS Steel.

"We face difficulty in discussing with creditors, even if
Sri Racha's debt is only 2-3 billion baht. Thus there is
nothing to talk about the prospect of the 10-billion baht
debt restructuring of NTS," said Chamni.

Apart from Sri Racha Harbor and NTS, Sawasdi group is
conducting debt restructuring of two other subsidiaries,
including Suntec and Steel Top. Suntec, an operator of
Steel processing facility, has 4 to 5 billion baht debt,
while steel TOP's outstanding debt is about 3 billion baht.

US-based McDonald Securities is advising the NTS group on
debt restructuring of its four subsidiaries. (Business Day
[Thailand] 27-Jan-1999)


RATTANA REAL ESTATE: SET warns of possible delisting
----------------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist Rattana Real Estate (RR) stock from the main bourse
if the company still fails to appoint independent directors
as required by the SET within the next three months,
according to a SET statement. The SET yesterday suspended
trading of RR securities. The SET issued the first warning
three months ago. The SP (suspension) sign will be placed
over RR stock for the next three months.

Besides RR, three listed companies namely, Bijoux Holdings
(BIJOUX), Christiani & Nielsen (Thailand) (CNT), Siam
Chemicals (S-Chem) are faced with a similar problem as they
too have been required to appoint an appropriate number of
independent directors.

Previously, RR had the SP sign posted on its stock due to
its failure to submit second and third quarter financial
statements prior to the deadline.

According to the new SET delisting regulations, the SET
will delist listed companies which fail to turn in its
financial statements for four consecutive quarters. This
ruling began being enforced from September 30, 1998.
(Business Day [Thailand] 27-Jan-1999)


SEAMICO SECURITIES: B75m in Seamico paper converted
---------------------------------------------------
Seamico Securities Plc said yesterday that the holders of
subordinated convertible debentures due in 2000 had
converted 75 million baht worth of units to more than two
million new shares at 37 baht each.

"Conversion of debentures to equity at this time
demonstrates the confidence the holders have in the future
of Seamico," managing director Robert McMillen said in a
statement. "The recent increase in our share price has
likely also been a factor in influencing the conversion."

He said that following the conversion, the company would
have $2.1 million in total external debt, and would be in a
better financial position.

Seamico is the country's seventh largest broker in terms of
volume. (Bangkok Post 27-Jan-1999)


SIAM CHEMICALS: SET warns of possible delisting
-----------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist Bijoux Holdings (BIJOUX), Christiani & Nielsen
(Thailand) (CNT), Siam Chemicals (S-Chem) for failing to  
appoint an appropriate number of independent directors.
(Business Day [Thailand] 27-Jan-1999)


STAR BLOCK: SET warns of possible delisting
-------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist six firms -- Wattachak Group (WAT), Univest Land
(UNIVEST), Thai Granite, Juldis Development (JULDIS),
Banchang Group (Bchang) and Star Block -- face possible
delisting under this ruling. According to the new SET
delisting regulations, the SET will delist listed companies
which fail to turn in its financial statements for four
consecutive quarters. This ruling began being enforced from
September 30, 1998. (Business Day [Thailand] 27-Jan-1999)


THAI GRANITE: SET warns of possible delisting
---------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist six firms -- Wattachak Group (WAT), Univest Land
(UNIVEST), Thai Granite, Juldis Development (JULDIS),
Banchang Group (Bchang) and Star Block -- face possible
delisting under this ruling. According to the new SET
delisting regulations, the SET will delist listed companies
which fail to turn in its financial statements for four
consecutive quarters. This ruling began being enforced from
September 30, 1998. (Business Day [Thailand] 27-Jan-1999)


UNIVEST LAND: SET warns of possible delisting
---------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist six firms -- Wattachak Group (WAT), Univest Land
(UNIVEST), Thai Granite, Juldis Development (JULDIS),
Banchang Group (Bchang) and Star Block -- face possible
delisting under this ruling. According to the new SET
delisting regulations, the SET will delist listed companies
which fail to turn in its financial statements for four
consecutive quarters. This ruling began being enforced from
September 30, 1998. (Business Day [Thailand] 27-Jan-1999)


WATTACHAK GROUP: SET warns of possible delisting
------------------------------------------------
The Stock Exchange of Thailand (SET) has threatened to
delist six firms -- Wattachak Group (WAT), Univest Land
(UNIVEST), Thai Granite, Juldis Development (JULDIS),
Banchang Group (Bchang) and Star Block -- face possible
delisting under this ruling. According to the new SET
delisting regulations, the SET will delist listed companies
which fail to turn in its financial statements for four
consecutive quarters. This ruling began being enforced from
September 30, 1998. (Business Day [Thailand] 27-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

Troubled Company Reporter -- Asia Pacific is a daily
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Copyright 1999.  All rights reserved.  ISSN: 1520-9482.  

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