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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      

      Wednesday, February 6, 1999, Vol. 2, No. 28

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS: Trading suspended pending announcement
AWT HOLDINGS: Seeks claims delay after proposals rejected
EBO HOLDINGS LIMITED: Winding-up petition
GUANGDONG INTERNATIONAL: Enlists foreign legal help
GUANGNAN (HOLDINGS): Guangnan chiefs quit amid probe

GUANGNAN HONG: Fortuna hit by debtor's default blow
HGI, ASIA LIMITED: In members' voluntary liquidation
ZHANJIANG INTERNATIONAL: Zitic creditors defer action


* I N D O N E S I A *

PT DHARMALA AGRIFOOD: Court says Dharmala not bankrupt


* J A P A N *

TOWA REAL ESTATE: May receive aid from Tokai Bank


* K O R E A *

JINRO COORS: To sell off by June


* M A L A Y S I A *

BANK BUMIPUTRA: Sold for $2.85b to Commerce Asset


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

ALSONS CEMENT: Alsons Cement seeks debt refinancing
PHILIPPINE AIRLINES: New mostly OK with regulators


* T H A I L A N D *

INTERNATIONAL ENGINEERING: Creditors back debt plan
SUNSHINE PCL: Appoints independent director
TELECOMASIA: To begin charging for PHS calls
THAI PETROCHEMICAL: Tarrin seeks restructuring plan OK
UNITED COMMUNICATIONS: Optimistic on finalizing debt plan


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

ALBATRONICS: Trading suspended pending announcement
---------------------------------------------------
At the request of Albatronics (Far East) Company Limited,         
trading in its shares has been suspended with effect from
11:00 a.m. today (9/2/1999) pending an announcement in
relation to the progress of the debt restructuring plan of
the Company as detailed in the announcement of the company
on 6th February, 1999. (Stock Exchange of Hong Kong
09-Feb-1999)


AWT HOLDINGS: Seeks claims delay after proposals rejected
---------------------------------------------------------
According to the South China Morning Post, freight
forwarder and property concern AWT Holdings is seeking to
delay settling $189.9 million in outstanding claims after
settlement proposals were rejected. Shareholders last week
failed to approve proposals such as issuing new shares to
existing staff and landlords in payment of unpaid salaries
and rents.

The company said secured creditors such as banks and
financial institutions had expressed a desire to dispose of
assets pledged for a total of $124 million. It said
vacating its Kwun Tong factory had to be delayed after
shareholders voted against the proposed sale of the
factory.


EBO HOLDINGS LIMITED: Winding-up petition
-----------------------------------------
A petition for the winding up of Ebo Holdings Limited was
presented to the High Court on Dec 29, 1998 by Public Way
Investments Ltd whose registered office is situate at Room
1201, 12th Floor, New Trend Centre, 704 Prince Edward Road
East, Sanpokong, Kowloon, and the said petition is directed
to be heard before the court at 11:00 am on Mar 3, 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, on payment of the regulated charges for the
same.


GUANGDONG INTERNATIONAL: Enlists foreign legal help
---------------------------------------------------
China has enlisted overseas legal and accounting
expertise to help handle the winding-up of GITIC, the
biggest and most internationally sensitive liquidation in
its history, the official China Securities daily reported
yesterday.

The official group appointed to clear Guangdong
International Trust and Investment Corp.'s (GITIC) debts
has hired accountancy KPMG Huazheng -- KPMG Peat Marwick's
Beijing joint venture -- and foreign law firms including
Britain's Johnson, Stokes and Master, the brief report
said.

A domestic lawfirm specialising in international affairs,
Guangzhou-based Kingson, is also being employed, it said.

The newspaper said authorities would make use of the three
firms' "specialised knowledge" to help carry out a fair,
open and just settlement.

Foreign creditors owed close to two billion dollars by
GITIC have complained vocally about a lack of transparency
in the bankruptcy proceedings, alleging closed-door
government dealing may be infringing on their rights.

None of them has a current list of assets, and one official
with the Bank of China, which was appointed to organise the
clearing group, went so far as to call GITIC's assets a
"state secret".

Officials have announced that GITIC's total debts stood at
36.175 billion yuan ($4.4 billion) against assets of 21.471
billion yuan ($2.61 billion). (Agence France-Presse and
Business Day  [Thailand] 09-Feb-1999)


GUANGNAN (HOLDINGS): Guangnan chiefs quit amid probe
----------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, senior executives of insolvent Guangnan
(Holdings) have resigned after the discovery of improper
and irregular practices at the group. Last night the
company said chairman Sun Guan, general manager James Huang
Xiaojiang and deputy general manager Huang Bingtong had all
quit.

KPMG's principal findings indicated potential asset and
revenue impairment due to inappropriate accounting and
improper and irregular practices; adverse market
conditions; bad investment decisions with regard to return
and risk; poor decisions regarding oversight, investments,
leverage and accounting practices.

Further investigation was needed and the financial
magnitude of the problems was still to be determined.

According to the South China Morning Post, the company,
which is part of the struggling Guangdong Enterprises
(Holdings) (GDE) group, raised severe disquiet among
analysts last month after discrepancies in its debt and
cash levels were disclosed at a creditors' meeting.

It was revealed the firm was effectively insolvent with
debt of US$391 million and was seeking agreement from banks
to stop payments of loan principal until April.

Guangnan said Kang Dian, a director of parent Guangdong
Enterprises (Holdings) had been elected interim chairman.
Cai Jinghua had been appointed director and interim general
manager and Wang Xiangyuan had been appointed a director.
Mr Cai is executive director and deputy general manager of
GDE group listed arm Guangdong Investment.

The board's priorities were to:

Stabilise and reinforce Guangnan's management to enable it
to carry on normal operations without interruption;

Communicate with employees, suppliers and customers to
confirm to them it intended to carry on business as usual
and the Guangdong provincial government's strong commitment
to the successful restructuring of Guangnan;

Reinforce Guangnan's trade facilities, with the
government's assistance; and

Undertake structural reforms at board level to ensure
proper oversight of the company's management and
operations.

Assistant to Guangdong governor Wu Jiesi said the
provincial government supported the measures taken by
Guangnan's board of directors.

According to the Hong Kong Standard, Guangnan said a
significant provision might have to be made afer KPMG's
findings.


GUANGNAN HONG: Fortuna hit by debtor's default blow
---------------------------------------------------
Fortuna International Holdings has raised fears its
development will be hindered by Guangnan Hong (Group)'s
failure to repay debt.

Vice-chairman and managing director David Chan Chuen-wing
said Guangnan Hong owed Fortuna more than $30 million, of
which about $8 million was past its due date.

"Guangnan is undergoing restructuring and they need more
time from us."

Guangnan Hong is a member of the struggling Guangdong
Enterprises group and the holding company of insolvent red
chip Guangnan (Holdings).

Fortuna -- 20 per cent held by Guangnan (Holdings) -- has
interests in electronics, ostrich farming, wine-making and
tannery operations. The company sold its interest in
electronics firm Firstone Investment to Guangnan Hong last
year.

Fortuna last month said Guangnan Hong had yet to settle
$8.94 million owed from that transaction due on December.
(South China Morning Post 09-Feb-1999)


HGI, ASIA LIMITED: In members' voluntary liquidation
----------------------------------------------------
The creditors of HGI, Asia Limited, which is being
voluntarily wound up, are required on or before Mar 1 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. Liquidators: David Ng, John
J. Toohey.


ZHANJIANG INTERNATIONAL: Zitic creditors defer action
-----------------------------------------------------
According to the Hong Kong Standard, creditors of Guangdong
investment firm Zhanjiang International Trust and
Investment Corp (Zitic) are divided on whether to take
legal action over its failure to pay a US$13 million loan,
pending an amicable resolution of Gitic's bankruptcy. The
loan matured in August.


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

PT DHARMALA AGRIFOOD: Court says Dharmala not bankrupt
------------------------------------------------------
The Asian Wall Street Journal reports that the Indonesian
Supreme Court has rejected an appeal by a the International
Finance Corporation (IFC) and other creditors to declare PT
Dharmala Agrifood bankrupt. This appeal was filed after the
Jakarta commercial court last December threw out a
bankruptcy petition by the IFC, as well as similar motions
by PT ING Indonesia Bank and PT Bank Niaga.  

The IFC petition was filed after Dharmala, a producer of
animal feed, failed to repay loans valued at 16.04 billion
rupiah and $51.7 million. However, the court rejected the
petition saying that the IFC and ING loans had not yet
fallen due, a prerequisite for a bankruptcy claim. A
similar petition by the Bank Niaga was rejected since the
court ruled that this loan was actually a derivative
contract to cover foreign-currency risks, and therefore not
a true loan agreement.

The reports states that the creditors involve all insists
that the loans had been due earlier in 1998.

The International Finance Corporation is the private
financing arm of the World Bank.


=========
J A P A N  
=========

TOWA REAL ESTATE: May receive aid from Tokai Bank
-------------------------------------------------
Shares of Towa Real Estate Development Co. rose 4 yen to
78. The real estate developer said it took over the
condominium business of an affiliate of one of its main
banks, Tokai Bank Ltd., raising expectations that the
troubled developer will receive the help of Tokai Bank in
restructuring its operations. (Bloomberg 09-Feb-1999)


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

JINRO COORS: To sell off by June
--------------------------------       
Jinro Coors will be sold off by the end of June through
international bidding. Bae Chong-kyu, joint court manager
of Jinro Coors, said yesterday, "We have decided to sell
off the company via international bidding through
consultation with creditors. We have set up a restructuring
secretariat office under the joint court managers to make
the sell-off procedure fair and clear."

Chase Securities, an affiliate to the Chase Manhattan Bank
of the United States, will initiate the sell-off procedure,
such as selection of local public accounting and law firms,
representatives of creditor financial institutions and
purchaser of the firm, he said.

The secretariat office has already sent explanation
pamphlets to 25 local and foreign alcoholic beverage
makers, such as Oriental Brewery (OB), Coors and Interblue
of Belgium. The bidding notice will be made in March.

The secretariat is scheduled to receive intents for bidding
and bidding terms from potential bidders by the end of
April, select purchasers by May and complete the sell-off
procedure by June.

Bae said, "At present, OB and Coors of the United States
have expressed their intention. But Chase Securities is
seeking other investors via its international network."

If bidding fails or the take-over contract is not made, the
secretariat will set up a program to liquidate the
corporations in consultations with creditors, Bae added.

Jinro Coors is a joint venture set up in 1992 by Jinro and
Coors at the ratio of 33 percent and 67 percent. Jinro Ltd.
has owned 100 percent of the beer maker since the U.S.
company gave up its 33 percent stake in December, 1997.
(Korea Times 09-Feb-1999)


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

BANK BUMIPUTRA: Sold for $2.85b to Commerce Asset
-------------------------------------------------
According to the South China Morning Post, Malaysia's
Commerce Asset Holdings is acquiring the troubled Bank
Bumiputra from the government for M$1.4 billion. Commerce
Asset will acquire 1.4 billion shares in Bank Bumiputra at
$1 a share. It will then issue 334.22 million new shares at
$3.04 each to Bank Bumiputra's government shareholders --
the Ministry of Finance and Khazanah Nasional, the
government's investment arm -- with the result that the
latter will be taking 30 per cent of Commerce Asset.

Commerce Asset executive director Rozali Mohamed Ali said
more than $5 billion of Bank Bumiputra's bad loans were
expected to be sold to a government-backed agency absorbing
non-performing loans.

Analysts estimate Bank Bumiputra had bad debts of $6.8
billion at September 30.

The merger is expected to create the country's second-
largest financial services group with about $65 billion in
assets. The merged group, Bumiputra Commerce Bank, will
also have an extensive network of branches, according to
Commerce Asset.

Second Finance Minister Mustapa Mohamed also said the newly
merged bank would be required to spin off its Islamic
banking assets into a new Islamic bank to complement the
existing Bank Islam Malaysia. The second Islamic banking
licence would then be returned to the government.

Bank Bumiputra ran into financial difficulties in 1984 when
its Hong Kong unit incurred losses of $2.5 billion. The
bank was later bailed out by the state-owned oil and gas
firm, Petroliam Nasional. The bank also became one of the
first Malaysian casualties of the Asian crisis, with a
government agency pumping in $700 million last year.

The Hong Kong Standard also reported on the merger. It said
that the merged entity will have about 65 billion ringgit
in assets.

The report said that Bank Bumiputra was set up by the
government to help indigenous Malays in business. It
recently got a 1.1 billion ringgit injection in fresh
capital and its third bailout since the 1980s.


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

ALSONS CEMENT: Alsons Cement seeks debt refinancing
---------------------------------------------------
The Asian Wall Street Journal reported that Alson's Cement
Corporation is seeking help from creditors and shareholders
for a debt refinancing plan that will cover principal
amortizations due over the next three years.  

The company reportedly has six billion peso's in debt, with
2.3 billion of this due in less than one year.  

This company is jointly owned by Holderbank Financiere
Glaris AG (a major Swiss cement concern), and Alsons Group
of the Philippines.


PHILIPPINE AIRLINES: New mostly OK with regulators
--------------------------------------------------
The Asian Wall Street Journal reported that the Philippine
Securities Exchange Commission (SEC) has approved most of
the provisions of the agreement between Philippine Airlines
(PAL) and its major creditors to submit a new
rehabilitation plan by March 15. However, the SEC took
exception to provisions of this agreement with the US
Export-Import Bank and European credit agencies that
allowed the return of aircraft if PAL failed to submit a
plan on time, or if the plan was rejected by creditors.

Instead, the SEC will allow redelivery of aircraft only if
it is convinced that the creditors acted in good faith with
respect to drawing up a viable restructuring plan with PAL.

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.


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

INTERNATIONAL ENGINEERING: Creditors back debt plan
---------------------------------------------------
The majority of International Engineering Plc's creditors
supported the company's debt restructuring scheme which
would extend the repayment period of its US$40 million debt
by five to eight years.

IEC yesterday told the Stock Exchange of Thailand that
although seven of the 12 creditors had jointly filed a
lawsuit with the Central Intellectual Property and
International Trade Court demanding repayment, it was not
their intent to prevent the implementation of the plan.

The company told the SET the reason for filing the suit was
to maintain all claims as one creditor had earlier filed a
lawsuit against the company. The company said the seven
creditors wanted to pressure the creditor to withdraw the
action so that debt restructuring negotiations could
proceed smoothly.

The seven creditors are Societe Generale's Bangkok
International Banking Facilities; Chia Tung Bank, WestLB
Asia Pacific Ltd, Hua Nan Commercial Bank, Nippon Credit
Bank, the Industrial Bank of Japan and the Long-Term Credit
Bank of Japan.

Monthep Klungsomboon, IEC's vice-president for corporate
communications, said the filing of the lawsuit by the seven
creditors would not affect the on-going debt restructuring
talks, which are expected to be concluded in the next six
months.

In restructuring the company's loans, the company would
like the creditors to reduce the company's interest burden,
"but we [IEC] did not ask for reduction of the loan
principals," Mr Monthep said.

Moreover, the company hopes to improve its own financial
position by selling investments in other companies.
(Bangkok Post 09-Feb-1999)


SUNSHINE PCL: Appoints independent director
-------------------------------------------
According to Sunshine Public Company Limited (SS) has
appointed an independent director within the deadline
specified by the SET effective from 1 February 1999
onwards. As a result, the SET would like to announce that
Sunshine is not facing possible delisting due to failure to
appoint the independent director. However, SS is still
facing the possible delisting due to the company's
operation and financial status. (Stock Exchange of Thailand
09-Feb-1999)


TELECOMASIA: To begin charging for PHS calls
--------------------------------------------
Dhanin Chearavanont, chairman and chief executive officer
of the Charoen Pokphand Group, owner of TelecomAsia (TA),
said TA will start charging fixed-line clients for its
personal cordless telephone (PCT) service in March after a
threat by the Telephone Organisation of Thailand (TOT).

After it signed an agreement with TOT in August 1996, TA
offered the PCT service in December 1997 temporarily free
of charge to over 110,000 fixed-line clients as part of a
promotional package. The PCT service is based on Japan's
personal handyphone system (PHS) technology.

Meanwhile, the company is trying hard to settle its debt
with NEC before it starts commercial operations. According
to the agreement, TA will pay for the installation of the
PCT base system once it is officially operational and
collecting service charges.

A source in TA said that it is negotiating with NEC to
extend payment terms for its 10 billion baht ($277.16
million) supplier deal because it is in the process of
restructuring its debts. For the first phase covering 1,500
square kilometres in inner Bangkok, TA has to pay NEC
around US$150 million. (The Nation 08-Feb-1999)


THAI PETROCHEMICAL: Tarrin seeks restructuring plan OK
------------------------------------------------------
Finance Minister Tarrin Nimmanahaeminda yesterday said he
had talked with the World Bank (WB) to persuade its
financial arm, the International Finance Corporation (IFC),
to support Thai Petrochemical Industry's (TPI)
restructuring plan.

"The World Bank assured us it will mention it to the IFC.
However, the World Bank said as it doesn't directly control
IFC, therefore, results aren't guaranteed," Tarrin said.

TPI has recently reported to the Stock Exchange of Thailand
(SET) that its restructuring plan would be delayed because
two of the 14 TPI's largest creditors, IFC and the
Commonwealth Bank of Australia (CBA), voted against the
plan.

The implementation of the plan must receive supporting
votes from creditors holding at least 75 percent of the
total $3.2 billion debt, while the two creditors account
for 28 percent.

According to the restructuring plan, accrued interest
incurred in the first three years will be converted to a 30
percent stake in TPI, and its capital will be increased
from 47 billion baht to 93 billion within five years.
(Business Day  09-Feb-1999)


UNITED COMMUNICATIONS: Optimistic on finalizing debt plan
---------------------------------------------------------
United Communication Industry (UCOM) says it is still
optimistic about prospects of finalizing its $570 million
debt restructuring plan within this month, despite the
unlikelihood of meeting the announced schedule date,
according to a source in UCOM.

"We are negotiating with creditors over details of the
plan. To date, we do not expect the debt restructuring
agreement to be ready as scheduled on February 12," the
source said.

The company is asking its 27 foreign creditors to extend
the repayment period by five years. Until now, a few of
them are still waiting final approval from their
headquarters.

The pact should be ready not later than February 26, the
timeframe which UCOM committed with the Euro Convertible
Debenture (ECD) and baht debenture holders, the source
said.

UCOM Chief Executive Officer and President Boonchai
Bencharongkul earlier said the restructuring plan will
include an extension of the maturity period for two bond
issues and a $210 million loan to the end of 2003. In
return, creditors would get a higher interest rate.

The $120 million worth of ECD and domestic debentures will
be converted into new equity of about 47 percent of the
company after the completion of its 2.5 billion baht
capital increase. The shares are priced at 22 baht each.

After the bond conversion, UK-based Somers will double its
shareholding in UCOM, which now stands at 13 percent,
Boonchai said.

The source said UCOM's debt restructuring would accomodate
a search for strategic partners for its mobile phone unit,
Total Access Communications (TAC).

TAC completed its $537 million debt restructuring last
September.

Under the agreed terms, TAC may extend the repayment period
for several tranches of debt. Downsizing of loans and loan
rates were not mentioned. (Business Day  09-Feb-1999)


VAN DER HORST: Bambang's stake in VDH cut
-----------------------------------------
Van Der Horst yesterday said that substantial shareholder
Bambang Trihatmodjo's stake in the company had fallen to
4.75 per cent, following the sale of 800,000 shares by an
    
independent financial institution at 67.52 cents a share.
(Singapore Business Times 09-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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DC USA.  Debra Brennan and Lexy Mueller, Editors.

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

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