---

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      

      Tuesday, February 9, 1999, Vol. 2, No. 27

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS: Albatronics on brink as debts soar
APPLECROSS NOMINEES LTD: In members' voluntary liquidation
AWT HOLDINGS: Issue of settlement shares to creditors
GUANGDONG ENTERPRISES: Transparency vowed in liquidation
GUANGDONG INTERNATIONAL: Transparency vowed in liquidation

PAKLYTEX GARMENT FACTORY LIMITED: Winding-up petition
PEREGRINE BROKERAGE: Investigation in Chinese Estates case
RICHLAND VACUUM COATING: Winding-up petition
SHANGHAI HAI XING: Sinopec sues over gas oil order payment
SING TAO HOLDINGS: Funds in push for deal on Sing Tao

VICKS ENTERPRISES LIMITED: Winding-up petition


* I N D O N E S I A *

BAKRIE & BROS: Making progress in debt negotiations


* J A P A N *

ASAHI GLASS: S&P lowers ratings
GUNMA BANK: S&P lowers ratings on Gunma Bank
HOKKAIDO TAKUSHOKU: Execs sued for 1.5 tril. yen in damages
JAPAN AIRLINES: S&P lowers ratings
KOMATSU: S&P lowers ratings

MATSUSHITA ELECTRIC: S&P lowers ratings
MITSUBISHI ELECTRIC: S&P lowers ratings
MITSUBISHI ESTATE: S&P lowers ratings
MITSUI FUDOSAN: S&P lowers ratings
NEC CORP: S&P lowers ratings

SANKYO: Results announcement
SXL CORP: Moody's downgrades credit rating
TOHO BANK: S&P lowers ratings on Toho Bank
VICTOR CO: S&P lowers ratings


* K O R E A *

CHUNGBUK BANK: Ordered to merge
DONGGUK COMPANIES: Dongguk companies forced to merge
HANSOL PAPER: Sells newsprint business for US$940 million
INDUSTRIAL SECURITIES: Public firm is bankrupt
KIA TOOL STEEL: Liquidation plan approved


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

PHILIPPINE AIRLINES: To submit new rehabilitation plan


* T H A I L A N D *

ALPHATEC: Charn says he'll make comeback
INTERNATIONAL ENGINEERING: Creditor banks file lawsuit
KIATNAKIN FINANCE: Investors dump shares on suspension
KOOS GROUP: S-One shares dip on Koos rumour
SAFARI WORLD: Set to pay back Bt1.5 m to SCB

SG ASIA CREDIT: Investors dump shares on suspension
SRITHAI SUPERWARE: Major owner to reduce stake
THAI PETROCHEMICAL: Govt urged to aid in debt restructure


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

ALBATRONICS: Albatronics on brink as debts soar
-----------------------------------------------
According to the South China Morning Post, consumer
electronics maker Albatronics (Far East) faces liquidation
after amassing debts of $794 million. Of this, $348 million
payable to eight banks and key trade creditors had become
overdue, the firm said. In addition, $223 million would
become due to its banks and key trade creditors on March 6.
The group's directors expect difficulty making these
payments.

The firm said it did not have sufficient funds to continue
operating beyond the end of this month and would be wound
up if it failed to reach agreement with bankers on
restructuring.

The group reported a loss of $529.31 million for the nine
months to December, compared with $22.4 million
attributable profit in the 12 months to March 31 last year.
The huge loss was due to $446.53 million in provisions made
against the discontinuation of the group's video compact
disc operation, write-off of inventories and development
costs and provisions for amounts due from the group's
associated companies.

Operating loss was $54.5 million during the nine months,
compared with $61.3 million operating profit for the year
to March 31. Turnover for the nine months was $1.62
billion, down from $2.73 billion in the previous full year.

As of December 31 last year, the group had $327.76 million
current assets and $866.84 million in current liabilities -
equivalent to net current liabilities of $539.08 million.

The group met banks and trade creditors last Saturday to
discuss debt restructuring but no legally binding agreement
had been reached.

Nam Tai Electronics, which controls more than 50 per cent
of the group's issued capital, is unwilling to support the
group through a shareholder loan or subscription for new
shares unless there is a successful restructuring of debts.
Nam Tai is reviewing the restructuring proposal and may
ultimately inject $110 million of new funds into the group,
of which $31.5 million would be used to repay part of the
bank borrowings.

Nam Tai took control of the group in September after
subscribing for 200 million new shares at 35 cents each,
valuing the group at just $140 million. Nam Tai had not
formulated a business plan or management strategy as its
review of the group's operations had yet to be completed.


APPLECROSS NOMINEES LTD: In members' voluntary liquidation
----------------------------------------------------------
The creditors of Applecross Nominees Limited, which is
being voluntarily wound up, are required on or before Mar 8
to send in their names, addresses and particulars of their
debts or claims to the Liquidator(s) of the said company,
and if so required by notice in writing from the
liquidator(s), are personally or by their solicitors to
come in and prove their debts or claims at such time and
place specified in such notice, or in default thereof, they
will be excluded from the benefit of any distribution
before such debts are proved. Liquidator: Betty Bik-Yuen
Yeung.


AWT HOLDINGS: Issue of settlement shares to creditors
-----------------------------------------------------
AWT Holdings Company Limited announces that the two
ordinary resolutions to approve the Settlement Agreements
between the Connected Creditors and various wholly owned
subsidiaries of the Company and the New General Mandate, at
the special general meeting held on 5th February, 1999 were
not passed by the Shareholders.
     
At the date of this announcement, the Board is not aware of
whether the Existing Connected Creditors will resign from
their positions with the Group as a result of the proposed
issue of the Settlement Shares not being approved by the
Shareholders.
     
Throughout the past year, the Group has taken various
actions to improve its financial position and reduce its
liabilities which includes settlement of debts through the
issue of Shares, disposal of the Group's non-core assets
and the issue of new convertible notes to roll-over the  
amount due under the previous unsecured note and
convertible note respectively upon their maturity. With
respect to the debts owing to the Connected Creditors and
to the existing independent third party creditors, the
Board expects to meet shortly after this announcement to
discuss the alternative ways (which may include the above)
to settle these debts.
     
As  at the date of this announcement, the Group's maximum
exposure of claims to existing third party creditors was
approximately HK$189.9 million. Details of those claims
were disclosed in the announcement of 18th January, 1999.
The increase in the Group's maximum exposure of claims from
the amount of approximately HK$187.9 million as stated in  
the Circular is attributable to management fees, rents and
additional interest accrued on the banking and other
finance facilities of the Group. As at the date of this
announcement, the total amount of banking and other finance
facilities owed by the Group was approximately HK$137  
million.

The Board has not been granted any extension of payment
period from any bank or financial institutions, however,  
the Board will continue to hold discussions with these
banks and financial institutions to settle the Group's  
debts. As at the date of this announcement, save as
disclosed in the Circular, the Board has not received any
additional demands for immediate payment from these banks
and financial institutions.

Further, all banks and financial institutions that hold the
Group's assets as security for their loans have expressed
the desire to dispose of such security, however, as at the
date of this announcement, none of the Group's assets held
by these creditors as security have been disposed of. The
amount of debt secured by the Group's assets is  
approximately HK$124 million. (Stock Exchange of Hong Kong
08-Feb-1999)


GUANGDONG ENTERPRISES: Transparency vowed in liquidation
--------------------------------------------------------
According to the Hong Kong Standard, Guangdong Executive
Vice-Governor Wang Qishan told a Morgan Stanley delegation
visiting Guangzhou that there would be transparency in the
liquidation process for the Guangdong International Trust
and Investment Corp (Gitic).

He said the decision to close Gitic was in line with the
policy of taking responsibility which was set in a
financial working committee meeting held after the 15th
Party Congress in November 1997. He said the country was
trying to enforce the principle of borrowing entities
taking responsibility for their own debts. He said
investors would have to make investment decisions based on
the merits of a company and the past practice of
enterprises riding free on government credit would have to
be corrected.

He said Gitic and Guangdong Enterprises differ in terms of
nature, asset position and management, and hence the method
of handling the two companies will differ. The provincial
government plans to inject quality assets into Guangdong
Enterprises as well as get rid of its poor quality assets.


GUANGDONG INTERNATIONAL: Transparency vowed in liquidation
----------------------------------------------------------
According to the Hong Kong Standard, Guangdong Executive
Vice-Governor Wang Qishan told a Morgan Stanley delegation
visiting Guangzhou that there would be transparency in the
liquidation process for the Guangdong International Trust
and Investment Corp (Gitic).

He said the decision to close Gitic was in line with the
policy of taking responsibility which was set in a
financial working committee meeting held after the 15th
Party Congress in November 1997. He said the country was
trying to enforce the principle of borrowing entities
taking responsibility for their own debts. He said
investors would have to make investment decisions based on
the merits of a company and the past practice of
enterprises riding free on government credit would have to
be corrected.

He said Gitic and Guangdong Enterprises differ in terms of
nature, asset position and management, and hence the method
of handling the two companies will differ. The provincial
government plans to inject quality assets into Guangdong
Enterprises as well as get rid of its poor quality assets.


PAKLYTEX GARMENT FACTORY LIMITED: Winding-up petition
-----------------------------------------------------
A petition for the winding up of Paklytex Garment Factory
Limited was presented to the High Court on Jan 27 by Ling
Hing Wan of 4th Floor, 22 Fung Yi Street, Tokwawan,
Kowloon, and the said petition is directed to be heard
before the court at 9:30 a.m. on April 7, and any creditor
or contributory of the said company desirous to support or
oppose the making of an order on the said petition may
appear at the time of hearing by himself or his counsel for
that purpose, and a copy of the petition will be furnished
to any creditor or contributory of the said company
requiring the same by Tam Lee Po Lin, Nina for Director of
Legal Aid, 27th Floor, Queensway Government Offices, 66
Queensway, Hong Kong, on payment of the regulated charges
for the same.


PEREGRINE BROKERAGE: Investigation in Chinese Estates case
----------------------------------------------------------
According to the South China Morning Post, the Chinese
Estates insider dealing inquiry took an abrupt turn
yesterday when a separate probe was launched into the
purchase of $76 million worth of shares in the company by
Peregrine Investments' brokerage arm. Peregrine Brokerage
bought nine million Chinese Estates shares -- a quarter of
that day's trade -- on November 21, 1996, the day before an
announcement of the company's $3.64 billion sale of the
Entertainment Building. The purchase was conducted through
a third party, Fair Eagle, and at a share price of around
$8.50.

A revelation by the Securities and Futures Commission
surveillance director prompted tribunal chairman to launch
a separate probe aimed at revealing the ultimate
beneficiary of the shares. The surveillance director told
the judge if there was an order from the tribunal to
investigate the purchase further, he would be able to
collect more information from Peregrine's liquidators.

Peregrine liquidator said it would be relatively simple to
trace the transaction if it was in the recent past.
Difficulties could arise if the purchase was carried out by
a third party. The brokerage arm carried out numerous
transactions on behalf of the group and third parities, he
said.


RICHLAND VACUUM COATING: Winding-up petition
--------------------------------------------
A petition for the winding up of Richland Vacuum Coating
Factory Limited was presented to the High Court on Jan 22
by Leung Wai Yin of Room 1518, Block 6, Kwai Shing West
Estate, Kwai Chung, New Territories, and the said petition
is directed to be heard before the court at 11:00 am on Mar
31, and any creditor or contributory of the said company
desirous to support or oppose the making of an order on the
said petition may appear at the time of hearing by himself
or his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


SHANGHAI HAI XING: Sinopec sues over gas oil order payment
----------------------------------------------------------
According to the Hong Kong Standard, Sinopec has filed a
lawsuit against Shanghai Hai Xing Shipping, seeking US$1.75
million plus accrued interest.

It is alleged that Shanghai Hai Xing had failed to pay up
in full for an order it had placed for 11 metric tonnes of
gas oil.

According to the writ, an agreement was signed on October
24, 1997 under which Shanghai Hai Xing agreed to settle the
purchase price within 30 days of the date of the bill of
lading, and to pay interest on any outstanding purchase
price accrued at the rate of 8.5 per cent.

Following delivery and acceptance of the 10,987 metric
tonnes of gas oil, Sinopec sent Shanghai Hai Xing an
invoice dated October 24, 1997 for US$2,153,431 but the
purchase price or any part thereof was not settled within
the 30 day period, it was alleged.

Shanghai Hai Xing's payments went toward the interest
accrued on the purchase price before they were applied to
the outstanding balance, leaving US$1,750,070 unpaid as of
February 2, Sinopec claims.


SING TAO HOLDINGS: Funds in push for deal on Sing Tao
-----------------------------------------------------
According to the South China Morning Post, the potential
buyers of Sally Aw Sian's 23 per cent stake in Sing Tao
Holdings, Dublin-based China Enterprise Development Fund
(CEDF) and Investment Co of China, yesterday issued a
statement saying they still considered the deal valid. This
was despite the court's refusal to validate the deal. The
potential buyers said completion of the deal was not
conditional upon the court's validation.

The companies said for the sale to proceed Ms Aw had to
grant an option to enable them to acquire a futher 10 per
cent stake in Sing Tao.

However, they said it was unlikely Ms Aw would be able to
grant such an option because this move required the
cooperation of the interim receiver of Ms Aw's assets. The
cooperation depended on the outcome of a hearing about Ms
Aw's bankruptcy petition, the date for which was set to
be Feb 25.

The buyers said if these conditions had not been fulfilled
before Feb 2, they had the right to proceed with the
purchase, but no decision had been made.

The complexities of the deal had made it necessary for the
potential buyers to call in additional advice from law firm
Richards Butler.

The Securities and Futures Commission has granted the
buyers a waiver on making a mandatory general offer for all
outstanding Sing Tao shares.

The above is also covered in the Hong Kong Standard which
says that in a joint statement with Sing Tao yesterday,
Sunrise said it was reviewing its position under the share
sale deal and it had not yet decided if it wished to waive
the satisfaction of the remaining conditions and proceed
to completion, which is scheduled to take place on Feb 15.

An effect of the court's dismissal of the application for a
validation of the deal is that completion of the share sale
agreement may be void if Sing Tao chairman Sally Aw Sian is
subsequently adjudged bankrupt.

The paper also reported that Sing Tao director Tang Lap Yan
resigned from the board on Feb 6.


VICKS ENTERPRISES LIMITED: Winding-up petition
----------------------------------------------
A petition for the winding up of Vicks Enterprises Limited
was presented to the High Court on Jan 18 by Wellbig
Company Limited of Room 5, 5th Floor, Shun Fat Industrial
Building, 17 Wang Hoi Road, Kowloon Bay, Hong Kong, and the
said petition is directed to be heard before the court at
11:00 am on Mar 24, and any creditor or contributory of the
said company desirous to support or oppose the making of an
order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by the
Solicitors for the Petitioner, Messrs. Lau & Chan, 6th
Floor, Kailey Tower, 14-16 Stanley Street, Central, Hong
Kong on payment of the regulated charges for the same.


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

BAKRIE & BROS: Making progress in debt negotiations
---------------------------------------------------
The Asian Wall Street Journal reported that the president
and chief executive of Bakrie & Brothers., the flagship of
the Bakrie Group and one of Indonesia's largest
conglomerates, has reported progress in debt negotiations
with creditors. Bakrie & Brothers has reportedly about $588
million in direct loans and $450 million in guarantees to
its operating units. This company stopped servicing its
debt in January, 1998.

The deal reportedly involves exchanging debt for 80 percent
of a new Bakrie holding company what would own shares in
five of Bakrie's key assets, including 5.3 percent of the
New York listed Iridium LLC, the international satellite
communications company. Other possible assets to be
included in the new company are PT Bakrie Sumatra
Plantations, the Bakrie steel pipe operation, and it
electronics segment.  

Bakrie is controlled by the influential businessman
Aburizal Bakrie, and is active mainly in
telecommunications, finance, and steel pipe manufacturing.


=========
J A P A N  
=========

ASAHI GLASS: S&P lowers ratings
-------------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


GUNMA BANK: S&P lowers ratings on Gunma Bank
--------------------------------------------
The Asian Wall Street Journal reported that Standard and
Poor's Ratings Group (S&P) downing graded the long-term
counterparty and long-term certificates of deposit ratings
of the Gunma Bank Ltd. from A to A-. The bank's short-term
ratings were lowered from A1 to A2.

The ratings move was reportedly based on expectations that
this bank will continue to be pressured by high levels of
credit losses due to exposures to problem borrowers,
deterioration in its overall portfolio, and declining land
prices.  


HOKKAIDO TAKUSHOKU: Execs sued for 1.5 tril. yen in damages
-----------------------------------------------------------
A group of shareholders of Hokkaido Takushoku Bank  
(Takugin) filed a suit Monday with the Sapporo District
Court seeking 1.5 trillion yen in damages from six
executives of the bank at the time of its collapse.

The damages being sought equal the amount reported in March
1998 as losses suffered by the bank after it declared
itself insolvent in November 1997 under a massive load of
bad loans, according to the suit.

Group leader Shuichi Ogasawara, who filed the suit, said a
decision to transfer the bank's operations after its
failure was made by the bank's executive directors without
consulting the shareholders.

Ogasawara, who owns 604,000 of the bank's shares, said the
former executives, including Sadamasa Kawatani, bank
president at the time of its collapse, "are responsible for
paying compensation for the losses."

Takugin, based in Sapporo, ended its 98-year history in
November 1998, transferring its operations to North Pacific
Bank and Chuo Trust and Banking Co. It became the first
among Japan's 10 "city" commercial banks with a nationwide
branch network to go under. (Kyodo News 08-Feb-1999)


JAPAN AIRLINES: S&P lowers ratings
----------------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


KOMATSU: S&P lowers ratings
---------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


MATSUSHITA ELECTRIC: S&P lowers ratings
---------------------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


MITSUBISHI ELECTRIC: S&P lowers ratings
---------------------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


MITSUBISHI ESTATE: S&P lowers ratings
-------------------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


MITSUI FUDOSAN: S&P lowers ratings
----------------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


NEC CORP: S&P lowers ratings
----------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


SANKYO: Results announcement
----------------------------
Shares of Sankyo Co. rose 310 yen to 2,370 on an outflow of
11.56 million yen. The maker of "pachinko," or Japanese
pinball machines, is likely to report a group net loss of
34.8 billion yen in the year through March after taking a
48.507 billion yen charge linked with the sale of real
estate. The company had initially expected a group net
profit of 7.6 billion yen. The company plans to sell
buildings and land as part of its corporate reorganization
plans. (Bloomberg 08-Feb-1999)


SXL CORP: Moody's downgrades credit rating
------------------------------------------
Shares of SXL Corp. fell 2 yen to 229. The house builder's
credit rating was cut to Ba3 from Ba2 by Moody's Investors
Service because of its weak earnings outlook. Both are junk
status.


TOHO BANK: S&P lowers ratings on Toho Bank
------------------------------------------
The Asian Wall Street Journal reported that Standard and
Poor's Ratings Group (S&P) downing graded the long-term
counterparty and long-term certificates of deposit ratings
of the Toho Bank Ltd. from A- to BBB+.

The ratings move was reportedly based on expectations that
this bank will continue to be pressured by high levels of
credit losses due to exposures to problem borrowers,
deterioration in its overall portfolio, and declining land
prices.  


VICTOR CO: S&P lowers ratings
-----------------------------
Standard and Poor's Corp. said it had cut ratings of nine
leading firms including electronics giants Matsushita
Electric Industrial Co. Ltd., Mitsubishi Electric Corp.,
NEC Corp. and Victor Co. of Japan.

Other firms receiving downgrades were Japan Airlines Co.
Ltd., Asahi Glass Co., Komatsu, and leading real estate
firms, Mitsubishi Estate Co. and Mitsui Fudosan.

"The rating downgrades reflect the more difficult, less
predictable environment for companies across the board in
Japan," the leading U.S. credit rating agency said in a
statement. (Reuters 08-Feb-1999)


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

CHUNGBUK BANK: Ordered to merge
-------------------------------
The Financial Supervisory Commission (FSC) announced Sunday
that it will enforce a merger order it had issued earlier
to Chungbuk, which has been unable to come up with its own
merger plan. The FSC is expected to choose a merger partner
for the bank, with the merger process to be completed by
April 30. The FSC plans to inject government funds to make
up for the portion of Chungbuk's paid-in-capital which has
so far been depleted. Observers say that Cho Hung Bank is
most likely to be named as the merger partner, since it had
already been in merger negotiations with Chungbuk at one
time last year. (Digital 07-Feb-1999)


DONGGUK COMPANIES: Dongguk companies forced to merge
----------------------------------------------------
The Korean language Maeil Kyungje reports that the three
affiliates of Dongguk Group, a target of a workout program,
will merge upon orders of their creditors issued February
5th, 1999. The three affiliates are Dongguk Trading Co.,
Dongguk Synthetic Fiber Co., and Dongguk Textile Co.

Creditors have decided to reschedule part of these
companies' debt repayments to the year 2002.


HANSOL PAPER: Sells newsprint business for US$940 million
---------------------------------------------------------
Hansol Paper Co., Ltd. announced Friday that it has
received US$580 million of the total US$940 million it has
agreed to sell its newsprint business for and is expected
to bring the remaining US$360 million in March. The company
plans to invest the money into its financial restructuring
to lower its debt-equity ratio below 200% from the current
300%. (Digital 05-Feb-1999)


INDUSTRIAL SECURITIES: Public firm is bankrupt
----------------------------------------------
The Korean language Maeil Kyungje reports that the
Industrial Securities Company, an affiliate of the Korea
Industrial Bank, went insolvent on February 5th, 1999. The
securities company had received 150 trillion won in credit
assistance last March and since went through a
restructuring program under the guidance of a foreign
business consulting company. The article noted that this is
the first time Korean public corporation applied for
bankruptcy.


KIA TOOL STEEL: Liquidation plan approved
-----------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Kia Tool Steel Company's liquidation
plan was approved by the Seoul District Court.


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

PHILIPPINE AIRLINES: To submit new rehabilitation plan
------------------------------------------------------
The Asian Wall Street Journal reported that the Philippine
Airlines (PAL) has reached an agreement with its major
creditors to submit a new rehabilitation plan to the
Philippine Securities Exchange Commission (SEC) no later
than March 15. This agreement between the US Export-Import
Bank and European credit agencies, provides that these
creditors will not take any further action against PAL
aircraft within 30 days of this plan's submission.

The agreement also indicated that if PAL failed to submit a
plan on time, or if was rejected by creditors, then PAL
would return the aircraft to those organizations that
financed them.  

PAL reportedly owes $890 million to the European creditors
involved (an amount used to finance 12 Airbus A330-300
jets) and the US Export-Import Bank $341.2 million (for the
purchase of four Boeing 747-400s).  

Last week, PAL made a payment of $38 million on its
creditors, which was the first time since last July it has
serviced its more than $2.2 billion debt.

PAL troubles stem from an unfortunate timing of an 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.  


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

ALPHATEC: Charn says he'll make comeback
----------------------------------------
Last week's creditor approval of Alphatec Electronic plc's
$362 million debt restructuring plan was only one piece of
the $4.5 billion (Bt165 billion) jigsaw puzzle left
unfinished by Charn Usawachoke, the former head of Alphatec
and affiliated Submicron Technologies plc.

"Trust me, I will be back very soon," Charn Usawachoke said
confidently last week during a TV talk show.

That was the statement from a man who is facing 14 counts
of embezzlement and other charges following the collapse of
his empire just before the financial crisis began to unfold
in 1996-97.

After disappearing from public view for more than a year,
Charn also tried to suggest that the evidence produced by
auditors of PricewaterhouseCoopers that supported the Bt3.6
billion embezzlement charge filed against him was a
consequence of his mistakes in getting the money the wrong
way to finance investment in related companies -- such as
for an industrial estate [for Submicron] and other
infrastructure in Chachoengsao.

He did not specify the amount, but the evidence from
PricewaterhouseCoopers  was Bt3.6 billion, with allegations
that false orders were used to get packing credit loans but
no goods were sold or delivered. The money was, however,
transferred from the firm without board and shareholder
approval.

Charn was then CEO of Alphatec. (The Nation 08-Feb-1999)


INTERNATIONAL ENGINEERING: Creditor banks file lawsuit
------------------------------------------------------
The International Engineering Public Company Limited, in
October 1995, signed USD40,000,000 syndicate loan agreement
due October 1998 with a group of 12 banks, both local and
foreign banks. The company is now under debt restructuring
process in order to extend the maturity to 58 years term.

Currently, IEC has been informed that 7 banks out of 12
have mutually file a lawsuit to the Central Intellectual
Property and International Trade demanding the company to
repay principal with interest of USD24,423,909.64 equal to
Bt900,753,787.52.

The reason for filing lawsuit of those 7 banks, despite of
ongoing debt restructuring process, is to maintain all
claims since there was a creditor has earlier filed a
lawsuit against IEC. Besides, they would like to push
pressure on that creditor to withdraw the case from the
court and come back to join debt restructuring afterward.

Our financial advisor and we are now under discussion with
the 7 banks to find out the solution. In the mean time,
agent of 12 banks is still trying to convince the creditor
to withdraw the lawsuit, then the banks will follow the
same action and altogether come back to jointly cooperate
on debt restructuring with the company. (Stock Exchange of
Thailand 08-Feb-1999)


KIATNAKIN FINANCE: Investors dump shares on suspension
------------------------------------------------------
Investors dumped shares of Kiatnakin Finance & Securities
Plc, SG Asia Credit Plc and Tisco Finance Plc after the
Stock Exchange of Thailand temporarily suspended the
companies yesterday, causing their prices to plunge to the
floor.


KOOS GROUP: S-One shares dip on Koos rumour
-------------------------------------------
Investors on Friday dumped shares of Securities One Plc (S-
One) heavily and caused its share price to tumble 6.94 per
cent following news reports that a subsidiary of Koos
Group, S-One's major shareholder, was in deep financial
trouble. (The Nation 06-Feb-1999)


SAFARI WORLD: Set to pay back Bt1.5 m to SCB
--------------------------------------------
Safari World Plc, a leading local leisure park operator,
plans to repay debts of Bt1.5 billion to its major creditor
Siam Commercial Bank after its registered capital was
raised by Bt2 billion last month, said president and chief
executive officer Pin Kewpaisal.

The company increased its capital from Bt2 billion to Bt4
billion by issuing 200 million new shares at Bt10 each. The
shares would be allocated to existing shareholders on a
one-for-one basis, said Pin.

He said the company expects to raise Bt2 billion of which
Bt500 million will be set aside for its cash flow and Bt1.5
billion for repaying debts.

The number of local visitors to Safari World dropped by 70
per cent last year after the economic crisis hit, while the
number of foreign visitors doubled. (The Nation
08-Feb-1999)


SG ASIA CREDIT: Investors dump shares on suspension
---------------------------------------------------
Investors dumped shares of Kiatnakin Finance & Securities
Plc, SG Asia Credit Plc and Tisco Finance Plc after the
Stock Exchange of Thailand temporarily suspended the
companies yesterday, causing their prices to plunge to the
floor.


SRITHAI SUPERWARE: Major owner to reduce stake
----------------------------------------------
The Angubolkul family is likely to give up a major portion
of its controlling stake in Srithai Superware, which it
founded, to either new investors or creditors in a bid to
quickly conclude debt restructuring, said Srithai President
Sanan Angubolkul. The family currently holds about 60
percent in Thailand's largest melamine ware producer and is
negotiating with creditors on a debt-for-equity swap to
ease debt burden. The company is shouldering $146 million
of debt. Its interest payment is about 500 million baht per
year, Sanan said.

"We are looking to cut the burden by half to survive," he
said, adding its 123 creditors, including foreign banks and
bond holders, will vote on the debt restructuring term
within this month, while result would be known around the
first week of March.

Proportion of stake to be reliquished to creditors has not
been finalized.

Srithai currently has a registered capital of 500 million
baht.

Srithai last year signed a memorandom of undestanding with
Berli Jucker (BJC) for an equity participation of 1.2
billion baht. To date, the deal hasn't materialized.

Sanan earlier said the money raised through allowing BJC as
its new partner would be used to pay debt, before asking
creditors to reduce the total debt down by about a fifth to
sustain its financial position.

The amount of equity acquisition by Berli Jucker in Srithai
will depend on the result of negotiation with creditors.

Srithai stopped servicing its debt since November 1997.
(Business Day [Thailand] 08-Feb-1999)


THAI PETROCHEMICAL: Govt urged to aid in debt restructure
---------------------------------------------------------
Eleven large creditors of Thai Petrochemical Industry (TPI)
have called on the Government to negotiate with the World
Bank to persuade its financial arm International Finance
Corporation (IFC) to endorse a $3.2 billion debt
restructuring plan.

A source from a TPI creditor said: "Any success in TPI's
debt restructuring plan would depend on how Finance
Minister Tarrin Nimmnahaeminda will do to convince IFC to
accept the plan." Two of the 14 TPI's largest creditors,
namely IFC and the Commonwealth Bank of Australia (CBA,) at
a meeting on January 31 voted against the plan, causing a
month-long delay to the plan because implementation must
receive supporting vote from creditors holding together at
least 75 percent of the total debt.

The source said that TPI's creditors ask the Government to
discuss the issue with the World Bank because corporate
debt restructuring is among the ministry's main policies,
adding that the creditors believed it is easier for the
ministry to persuade IFC to agree to the plan.

The Bank of Thailand (BOT) wants TPI's debt restructuring
plan to succeed because 148 creditors are involved.

"We are confident that TPI's plan will eventually be
approved because it seems to cover most aspects of damage
to creditors and is considered to be quite a very good
plan," the source confirmed.

According to TPI's restructuring plan, accrued interest
incurred in the first 3 years will be converted to 30
percent stake in TPI, and its capital will be increased
from 47 billion baht to 93 billion baht within five years
to smooth out operations. (Business Day [Thailand]
08-Feb-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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