TCRAP_Public/990216.MBX 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 16, 1999, Vol. 2, No. 32


* C H I N A   &   H O N G   K O N G *

CA PACIFIC SECURITIES: SFC pays out $17m to clients
FORLUXE SECURITIES: Trio stole Forluxe millions, says writ
GUANGDONG INTERNATIONAL: Japanese banks want priority
GUANGDONG INTERNATIONAL: Visit to clarify Gitic problem
GUANGZHOU FINANCE: HK court appoints liquidators

GUANGZHOU INTERNATIONAL: Gzitic targets rescue crew
GZITIC HUALING: Suspension of trading
HWA KAY THAI: Hwa Kay Thai tips $168m in losses
LAI SUN DEVELOPMENT: Lai Sun unit pays Furama job cost
LAI SUN DEVELOPMENT: Plans hotel-office complex for site

LEADING SPIRIT: Results announcement
SEAPOWER RESOURCES: Chief sued over Paramount loans
SHENZHEN INTERNATIONAL: Szitic's foreign credit cut
WHIMSY ENTERTAINMENT: Receives writs for outstanding rent

* I N D O N E S I A *

ASTRA INTERNATIONAL: Tempts creditors with 30pc pay offer

* J A P A N *

DAIEI: To cut board members
LONG TERM CREDIT: Dummy firms hid losses of popular singer
NIPPON CREDIT BANK: MOF may have hid extent of bad loans
SUMITOMO CORP: To revamp 150 units to boost profit
TOKYO CITY FINANCE: Seiyu seeking Y250bn loan forgiveness

TOYO TRUST: Chase to take over Toyo Trust operations

* K O R E A *

MONALISA CO: Completes liquidation plan
PUNGYON CO: Completes creditor reconciliation
SAMSUNG MOTORS: Samsung car workers agree on compromise
SHIN DONG-A GROUP: Owner formally arrested
TAESUNG MACHINERY CO: Starts creditor reconciliation

* M A L A Y S I A *

LIEN HOE: To issue shares to fight debt, losses
TAIPING CONSOLIDATED: Asset disposal approved

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

PHILIPPINE AIRLINES: Near deal with unnamed US carrier
PHILIPPINE AIRLINES: No aid from Miyazawa fund

* T H A I L A N D *

ALPHATEC: Creditors' plan wins approval; first case ever

C H I N A   &   H O N G   K O N G

CA PACIFIC SECURITIES: SFC pays out $17m to clients
According to the South China Morning Post, the Securities
and Futures Commission will pay $11 million to 164 clients
of Ca Pacific Securities, which collapsed in January last
year, the second time it makes compensation payments for CA
Pacific clients, making the total payout $88.6 million paid
to 1,060 clients.

Of the 164 clients, 143 had accounts at the brokerage's
margin-financing arm, CA Pacific Finance and their claims
have been allowed or partially allowed by the stock
exchange. Seven claims from clients of CA Pacific Finance
have been rejected.

Under the special compensation arrangement for Ca Pacific,
clients who had cash accounts with the brokerage, or margin
clients who had not used the margin account within six
months of its collapse, will receive up to $150,000 each,
but clients who used the margin-financing facility will not
receive compensation.

Clients with claims of more than $150,000 will not get full
compensation. Compensation of $20 million for the 164
clients have been approved but only $11 million will be

FORLUXE SECURITIES: Trio stole Forluxe millions, says writ
According to the South China Morning Post, former Forluxe
Securities director James Mui Kwong-nok and his brother
Gordon Mui Kwong-yin embezzled shares worth $34.2 million
and $6.97 million in cash from the company, the
liquidators said.

A High Court writ states that the two brothers, along with
James Mui's wife Peggy Lee Yui-pin advanced money from the
company to themselves between July 1995 and May 1998 - when
the company was forced into liquidation. James Mui is
alleged to have taken $5.97 million, Gordon Mui $50,000 and
Peggy Lee $954,000.

The trio are alleged to have misappropriated or misapplied
shares held by Forluxe as agent for its investor clients,
or owned by the company itself by pledging the shares to
Kingston Finance and Wing Hang Bank for the purpose of
raising improper funding for themselves. The total value
of the shares was $34.28 million, including interest.

The embezzlement was discovered only last May on the
appointment of Nelson Wheeler Corporate Reconstruction and
Insolvency as provisional liquidators, according to the

Yesterday's writ sought $9 million on behalf of Forluxe
from its underwriters. Civial lawsuits have also been filed
against the Mui brothers.

Christopher Mark Swinbank is being sued on behalf of
himself and Lloyds underwriters. Lloyds is alleged to have
agreed to insure Forluxe to a limit of $9 million but
wrongfully and in breach of contract did not make such

The Securities and Futures Commission will make
compensation payments amounting to $6.57 million next month
to 75 clients of Forluxe Securities, with compensation
limited to $150,000 for each individual.

This is the first batch of compensation made to Forluxe
clients since the company's closure last May. The exchange
has allowed 75 Forluxe clients' claims to the extent of
$14.69 million, but only $6.5 million will be paid from the
fund. The stock exchange will prorate the $8 million
shortfall after it has determined the claims of all

Clients who have not received full repayment will then be
able to get more compensation.

GUANGDONG INTERNATIONAL: Japanese banks want priority
Major Japanese banks will call on the Chinese government to
place priority on foreign creditors in repaying the debts
of failed Guangdong International Trust and Investment
Corp., informed sources said Saturday.

Japanese banks were the largest foreign lenders to GITIC,
which was shut down by the Chinese government in October
1998 due to its inability to repay massive borrowings.
(Jiji Press English News 13-Feb-1999)

GUANGDONG INTERNATIONAL: Visit to clarify Gitic problem
According to the South China Morning Post and the Hong Kong
Standard, representatives from the Hong Kong Association of
Banks and Hong Kong Monetary Authority chief executive
Joseph Yam Chi-kwong are planning a second trip to Beijing
after the Lunar New Year to meet with mainland authorities
to seek clarification of the debt repayment process of
Gitic, as well as clarification on how to handle the debt
problems of the 240 international trust & investment

GUANGZHOU FINANCE: HK court appoints liquidators
According to the South China Morning Post and the Hong Kong
Standard, the High Court yesterday appointed KPMG partners
Gabriel am Chi-kok and Alan Tang Chung-wah as the
provincial liquidators of Guangzhou Finance, the Hong Kong
finance arm of Guangzhou International Trust and Investment
Corp (Gzitic). A KPMG spokesman said they would preserve
the assets of the firm and had yet to fix a date for
creditors to meet.

According to the South China Morning Post, Bankers were
surprised to the turn of events, which came after Gzitic
officials made assurances in the past three days over the
company's future.

The People's Bank of China and Guangzhou municipal
government, which owns Gzitic, had earlier said that they
intended to keep the firm afloat as they did not want to
see more large international trust and investment
corporations collapse.

The liquidation of Guangzhou Finance has cast doubt upon
the future of Gzitic. It also casts a cloud over red chip
Gzitic Hualing Holdings, which will see a change of control
as a result.

Gzitic holds 50.9 per cent of its Hong Kong-listed arm
through Guangzhou Finance. The parent had already pledged
90 per cent of its 57.89 per cent shareholding in Gzitic
Hualing to obtain loans.

The creditor or creditors secured with Gzitic Hualing
shares could either hold on to them or liquidate them.
Either case would mean a change in control.

Gzitic had an estimated 20 billion yuan in assets and 19
billion yuan in liabilities.

Creditor banks yesterday asked Gzitic officials to provide
written evidence of its intention to restructure to stay
afloat. They also asked Gzitic officials to call on other
creditors not to take legal action against the firm during
the interim period.

GUANGZHOU INTERNATIONAL: Gzitic targets rescue crew
According to the South China Morning Post, Gzitic has
announced it will soon appoint international professional
firms as consultants to submit a debt restructuring
proposal to creditors of its bankrupt Hong Kong finance
arm -- Guangzhou Finance Company.

The move, which follows the court's appointment of KPMG as
Guangzhou Finance's liquidators, is seen as an attempt to
appease creditors.

Gzitic said the petition to wind up Guangzhou Finance was
presented to the court by a loan syndicate.

It also said it would try best to reach a consensus with
the creditors regarding the debt restructuring proposal of
Guangzhou Finance before the hearing of the winding-up
petition which is set for April 14.

GZITIC HUALING: Suspension of trading
At the request of GZITIC Hualing Holdings Limited, trading
in its securities will be suspended with effect from 10:00
a.m. 15/2/1999 pending an announcement in relation to the
press reports of 13 February 1999 regarding the appointment
of provisional liquidator by the High Court of Hong Kong
SAR on 12 February 1999 against Guangzhou Finance Company
Limited, the intermediate holding company of the Company.
(Stock Exchange of Hong Kong 15-Feb-1999)

HWA KAY THAI: Hwa Kay Thai tips $168m in losses
According to the South China Morning Post, management
accounts show that Hwa Kay Thai has posted a $168.33
million loss for the eight months to Nov 30.

The company said unaudited consolidated deficiency in its
net assets was $112.93 million. Pro forma unaudited
consolidated net tangible assets reached $89.56 million.
Net current liabilities stood at $194.47 million. Turnover
for the period reached $112.93 million. Loss from ordinary
activities amounted to $167.54 million.

The company said its financial transactions carried a
restructuring cost of $11 million.

Hua Kay Thai distributes and markets Puma brand products,
operates restaurants, engages in property investment and
development and infrastructure investment. It runs Tin Tin
Seafood Harbour Restaurant and has invested in the Bangkok
Mass Transit System Public and in Thai property projects.

In 1997, the company diversified into multi-brand retailing
on the mainland by opening Sportzone, a megastore in

Its share in the $369.1 million foreign exchange loss of
its Thai associate, Tanayong resulted in a loss of $430.8
million for the half year to Sept 30, 1997.

In 1996, the company won a licence to sell Lotto sportswear
in Hong Kong, the mainland, Taiwan and in Thailand.

The company, said last year it would continue to explore
new infrastructure opportunities on the mainland and in
other Asian countries.

Hwa Kay Thai is 48.77 per cent owned by Wong Chue-meng and
21.80 per cent by Wong chong-shan.

LAI SUN DEVELOPMENT: Lai Sun unit pays Furama job cost
According to the South China Morning Post, Lai Sun
Development (LSD) said in a statement yesterday that the
500-room Furama Hotel would be demolished in 2001 to make
way for an office, retail and hotel complex. Its cash-rich
subsidiary Lai Sun Hotels International (LSHI) will pay for
the $2.15 billion project.

The company also emphasised that the adjacent Ritz-Carlton
Hotel would not be part of the Furama redevelopment plan.

Ever since the LSD bought the Furama Hotel in an aggressive
HK$7 billion takeover in mid 1997, there has been
speculation that it would be combined with the Ritz-Carlton
to create the single largest property on the east side of

While the Ritz-Carlton is not included in the project, Lai
Sun Hotels International (LSHI) said it would embark on an
improvement program including the construction of a
footbridge linking the two properties. This program,
together with the fitting out for Furama will cost $250
million and will be paid by LSHI. Management of the two
hotels would also be combined for greater efficiency.

The new hotel will be of 15,757 metres and will have 190
rooms. It will be significantly smaller than the 32,849 sq.
metre Furama it replaces.

Of the extra space, 4,707 sq metres will be retail space
and 20,740 sq metres will be office space. There will be 32
car parking spaces.

The deal will bring in much-needed funds for LSD, which
raised HK$834.5 million via a 94.4 per cent subscribed
rights issue completed at the start of the month.
Separately it had raised an estimated $3 billion from asset
sales by the end of last year.

Both LSD and its 52.17 per cent-owned LSHI have been
disposing of assets in the past year to raise cash.

The Hong Kong Standard also reported on the statement. The
report says that under the deal, Lai Sun Hotel, through its
subsidiary Golden Pool Enterprise, will pay $964.92 million
as a deposit once the deal is finalised. The remaining
$935.07 million will be paid once the new hotel is
completed on May 14, 2004.

The group said Furama Hotel was scheduled to be demolished
on July 31, 2001, and the fitting-out works completed by
October 31, 2004.

Lai Sun Development's sale of Furama to its sister company
is part of efforts to reduce debts, which received a push
following chairman Lim Por Yan's return on bail from Taiwan
where he was convicted of bribery.

LAI SUN DEVELOPMENT: Plans hotel-office complex for site
According to the South China Morning Post, Lai Sun
Development plans to redevelop the Furama Hotel in Central
into an office and hotel complex. The news has been
confirmed by the company's finance vice-president Keith
Jacobsen who said the 560-room Furama would be redeveloped
starting in 2001 and a formal announcement would be made
today. He said the hotel portion of the project would cost
about $2 billion to build and would be managed by Lai Sun
Hotels but did not say what the office portion would cost.

Trading in shares of Lai Sun Garment, Lai Sun Development
and Lai Sun Hotels were suspended yesterday pending an
announcement on a major and connected transaction.

Mr Jacobsen said Lai Sun Hotels had signed a conditional
agreement to participate in the project, pending
shareholder approval but refused to elaborate on the
agreement's details saying terms would be revealed in
the public announcement.

A source close to Lai Sun hinted the deal involved Lai Sun
Hotels acquiring control of the completed hotel and part of
the office complex once the new property was completed in
the middle of the next decade. No money was expected to
change hands in the near term.

Mr Jacobsen said the plans did not involve redeveloping the
adjacent Ritz-Carlton Hotel, which is 60 per cent owned by
Lai Sun Hotels. He said a footbridge or something
connecting the two properties might be built.

However, another source said the Ritz-Carlton might be
redeveloped with the Furama as part of the long-term plan.
However there are still some practical issues to be
addressed before these plans can be finalised.

The source said the Ritz-Carlton could be added to the
project once minority shareholders approved the project.

When Lai Sun Development completed the $7 billion purchase
of the Furama in mid-1997, deputy chairman Peter Lam Kin-
ngok indicated the two plots would be combined into a
single large development project.

The Hong Kong Standard also reported on the redevelopment
plans and cited a source as saying that Lai Sun Development
wants its sister company Lai Sun Hotels to buy all the
hotel stakes of the proposed redevelopment of for at least
$1 billion.

According to the report, the source said that massive costs
involving the redevelopment and merging of Furama and Ritz-
Carlton ruled out such as option.

LEADING SPIRIT: Results announcement
Leading Spirit (Holdings) Company Limited announced
year end results as of June 30, 1998 as a net loss of
HK$995,121 on turnover of HK$3,06 million. This compares
with a profit of HK$501,072 on turnover of HK$3.79 million
for the corresponding 1997 period.

Following the second slump in the Stock market in January
1998, the Group has decided to discontinue the business
of marketable securities trading after liquidating all
securities on hand. The loss of discontinued operation
included an exceptional loss of HK$22,995,000 which
represented the provision for diminution in value of
marketable securities. (Stock Exchange of Hong Kong

SEAPOWER RESOURCES: Chief sued over Paramount loans
The Bank of China has hit Paramount Publishing Group's
guarantors with lawsuits seeking a total of $160 million in
allegedly unpaid loans. Seapower Resources International
chairman Choi Sai-leung is facing legal action by the bank
over $138.1 million allegedly owed to it by Paramount.

Mr Choi is "principal obligor" on the loan extended to the
Paramount Group as part of a $222 million facility granted
by the bank in June 1995, according to a High Court writ.

He has "failed and/or refused" to pay the sum due, despite
letters from the bank's solicitors demanding payment, the
writ states.

Seapower International Holdings is also the target of a
writ filed by the bank seeking $21.9 million.

The bank claimed it had granted loan facilities, a
mortgage, a debenture issue, an overdraft and letters of
credit to Paramount Printing as borrower.

A deed of guarantee was executed in September 1997 by
Seapower, the writ says.

However, Paramount had defaulted in making payments on the
banking facilities, despite repeated requests to do so, the
writ said.

The bank is also seeking interest and costs.
(South China Morning Post 12-Feb-1999)

SHENZHEN INTERNATIONAL: Szitic's foreign credit cut
According to the South China Morning Post, Szitic has said
new foreign credit lines to the company have dried up since
the end of last year upon the bankruptcy of Gitic and the
successive revelations of debt repayment troubles at other
mainland window companies.

Company director Edward Luo said the company was scrambling
to make provisions to repay its dollar-denominated debt due
this year, which includes a US$150 million floating rate
bond issued in 1994 to help build a 300 megawatt power
plant for which investors may demand repayment by September
30. The company also claims medium and long-term foreign
borrowing of $91.447 million and short-term debt of $13.4

He described the funds freeze as a galling state of affairs
since Szitic last year repaid without delay foreign
borrowings totalling $132.46 million and domestic
borrowings of $10.78 million and 250 million yuan.

Szitic is arguably one of the most profitable companies in
the mainland's investment trust sector. It has a wide-
ranging portfolio that includes interests in Guaxin
Securities, Shenzhen's Wal-mart and a host of small
manufacturing enterprises. Last year it claimed unaudited
profits of 244.52 million yuan.

The company has been affected by the credit crunch. In
response, it has been shrinking espansion plans while
accelerating debt collections, strengthening relations with
domestic financial institutions to increase the proportion
of domestic loans.

To meet immediate capital shortfalls, the company has been
relying on internal resources, hence the fall in its
reported assets from 5.6 billion yuan in 1997 to 5.1
billion yuan last year.

Mr Luo said Szitic had moved in recent years to diminish
its financing business, while entirely separating its
securities and leasing operations. He said credit business
should belong to the banks. He also said Szitic was well
positioned should the central bank order investment trust
companies to hive-off operations -- into separate real
estate, industrial and leasing businesses, as many analysts
have suggested.

Szitic officials said it expected to achieve its 180
million yuan profits target this year despite the liquidity

WHIMSY ENTERTAINMENT: Receives writs for outstanding rent
Whimsy Entertainment Co., Limited has reported to
shareholders that members of the Group have received five
Writs of Summons claiming for the aggregate amount of
approximately HK$5.5 million of outstanding rentals and
other outgoings.

Additionally, four Warrants of Distress have been enforced
against four entertainment centers operated by the Group
claiming for an aggregate amount of approximately HK$3.9

The aggregate amount claimed under the Writs of Summons and
the Warrants of Distress is approximately HK$9.4 million,
representing approximately 11% of the value of the net
tangible assets of the Group of approximately HK$82.8

As at the date of this announcement, the Group is in
arrears of rental in respect of the entertainment centers
operated by the Group in Hong Kong for an aggregate amount
of approximately HK$17.5 million. The Group has paid rental
deposits of approximately HK$12.5 million in respect of
such entertainment centers.
The entertainment centers which were the subject of the
distraint actions were operating at a substantial loss to
the Group. The closure of such centers has immaterial
impact on the income of the Group and would cut down on
overhead expenses of the Group.
The Company has been in negative working capital position
for the last two financial years ended 31 March 1998. The
working capital position of the Company has not been
improved since 31 March 1998 and the Directors have taken
measures to increase the revenue of the Group and to reduce
the operation costs. (Stock Exchange of Hong Kong


ASTRA INTERNATIONAL: Tempts creditors with 30pc pay offer
According to the South China Morning Post, Indonesia's
biggest car assembler, Astra International, has asked
creditors of US$1.7 billion to write of 70 per cent of
their loans if they want to be paid immediately.

The company, which is struggling to restructure its foreign
debt, earlier offered repayment to creditors willing to
write off 75 per cent of their loans.

With Indonesia in its first recession in more than three
decades and car sales not likely to show a dramatic
rebound, many creditors are worried it will take some time
before Astra can repay its debt fully. Analysts say
creditors were looking to get what they could immediately
but some creditors said they believed Astra could repay
their debts in time and they were not interested in getting
only 20 to 30 per cent of their loans back.

Astra's creditors include Chase Manhattan and Sumitomo
Bank. The names of lenders looking to be repaid immediately
were not supplied.

Astra has earmarked $45 milion to pay creditors which
accept the latest offer. Information on the result would be
made available on March 12, and not before.

In October, Astra said it would stop making interest
payments until it reached an agreement with creditors to
restructure debt.

Negotiations stalled in December when some Japanese banks
refused to accept a suspension of interest payments,
forcing the company to consider resuming partial interest

Of Astra's debts of $1.9 billion, about $1.17 billion is
eligible for the plan. That includes $125 million in
convertible bonds due in 2006, $125 million in notes due in
2001, $200 million in guaranteed bonds due in 2003, and 400
billion rupiah in bonds due in 2002, as well as promissory

The company has been in talks with its creditors since
August, and will meet them again next week, either in Tokyo
or Singapore.

J A P A N  

DAIEI: To cut board members
The founder and chairman of Daiei Inc., Isao Nakauchi, said
Monday the struggling supermarket chain plans to slash the
number of its board members from the current 21.

The streamlining of the board is designed to speed up the
Daiei group's decision-making with an eye to reconstructing
the company, which is swamped with consolidated liabilities
of 2.6 trillion yen, Nakauchi told Kyodo News.

Nakauchi said he wants shareholders to approve the proposed
streamlining at their general meeting slated for May.
(Kyodo News 15-Feb-1999)

LONG TERM CREDIT: Dummy firms hid losses of popular singer
The failed Long-Term Credit Bank of Japan (LTCB) attempted
in the early 1990s to use dummy firms to hide part of 30
billion yen in loans given to popular singer Masao Sen's
real estate development business group that had gone sour,
sources close to the case said Saturday.

In an effort to hide the bad loans, the nationalized LTCB
had part of the loans secured by Sen's golf course in
Sendai, Miyagi Prefecture, instead of the original
collateral, and divided the golf course operator into two,
the sources said. (Kyodo News 13-Feb-1999)

NIPPON CREDIT BANK: MOF may have hid extent of bad loans
The Ministry of Finance hid the true size of bad loans held
by Nippon Credit Bank to implement a bailout plan for the
ailing bank in 1997, Financial Supervisory Agency
Commissioner Masaharu Hino indirectly admitted Friday.

In July 1997, NCB, which was declared insolvent and put
under temporary state control last December, received
equity investments of 210 billion yen from financial
institutions and 80 billion yen from the Bank of Japan.

The bailout plan orchestrated by the ministry and announced
in April of that year was based on the assumption that the
long-term credit bank was not insolvent. It also assumed
that the balance of NCB's Category III bad loans, for which
default risk is assumed, was 700 billion yen, as claimed
by the bank.

But the actual balance was 1,121.2 billion yen, as
discovered later in a ministry investigation.

The NCB bailout plan was announced on April 1 of that year.
On the same day, the bank drew fire for its decision to
seek a court-sponsored process for liquidating Crown
Leasing Corp. and two other bad loan-swamped nonbank
affiliates, a step that forced other creditors to bear
losses. (Jiji Press English News 12-Feb-1999)

SUMITOMO CORP: To revamp 150 units to boost profit
Major Japanese trading house Sumitomo Corp will reorganise
150 group companies in two years to boost profits and
liquidate unprofitable businesses, a business daily
reported yesterday. The Japanese trader will merge 80
subsidiaries and affiliates with other group firms and
liquidate the remaining 70, said Nihon Keizai Shimbun.

The 150 companies subject to reorganisation are the core
members of the trading house's group, it said. The group
currently has some 700 firms.

In the first half to last September, Sumitomo took a heavy
58.6 billion yen (S$866.4 million) group net loss, against
a 17.6 billion yen net profit last year. For the full year
to next March Sumitomo said it would crawl back into the
black, with a 16 billion yen net profit and sales of 11,800
billion yen. (Agence France-Presse 15-Feb-1999)

TOKYO CITY FINANCE: Seiyu seeking Y250bn loan forgiveness
Seiyu Ltd. is in the final stage of negotiations with main
creditor banks of its ailing finance subsidiary to have
them forgive a combined 250 billion yen in outstanding

The supermarket chain operator is seeking loan forgiveness
of nearly half the 530 billion yen owed by Tokyo City
Finance Co. to such lenders as Dai-Ichi Kangyo Bank,
Industrial Bank of Japan and Bank of Tokyo-Mitsubishi,
according to informed sources.

Seiyu has already struck a deal with Dai-Ichi Kangyo, under
which the city bank will give up some 70 pct of its loans
extended to Tokyo City Finance, the sources said.

Seiyu is now negotiating a 50 pct loan forgiveness deal
with six other creditor banks, including IBJ and Tokyo-
Mitsubishi, and a 25 pct forgiveness deal with other banks,
the sources said.

Seiyu hopes to conclude the talks by the end of the month,
they said.

The move is the latest in Seiyu's efforts to save its
troubled finance firm, and comes after Seiyu itself
provided 140 billion yen in financial assistance to Tokyo
City Finance.

Seiyu is planning to provide the firm with an additional 10
billion yen from profits eked out through the sale of
shares in affiliated Saison group companies, the sources

Tokyo City Finance will pull out of the real estate loan
business and concentrate on its mainstay leasing
operations, they said. (Jiji Press English News

TOYO TRUST: Chase to take over Toyo Trust operations
Chase Manhattan Bank will take over part of the securities
operations of Toyo Trust and Banking Co., marking the
Japanese trust bank's complete withdrawal from overseas               
business, a newspaper reported Sunday.

Toyo Trust, Japan's fifth largest trust bank, has agreed
to transfer its overseas securities custodian operations --
the business of holding and managing stocks and bonds -- to
the U.S. bank, the Nihon Keizai Shimbun said.

The trust bank has already decided to move its loan and
other overseas business to Japan's Sanwa Bank, the report

Toyo Trust is one of many Japanese banks requesting money
from a public fund created last year to strengthen the
ailing financial system.

In its deal with Chase Manhattan, Toyo Trust will also
undertake administrative operations for the U.S. bank's
investment trust business in Japan, the Nihon Keizai said.       
Toyo Trust officials were unavailable for comment on
Sunday. (Associated Press 14-Feb-1999)


MONALISA CO: Completes liquidation plan
According to the Korean language Maeil Kyungje's Business
Brief section, the Monalisa Company's liquidation plan was
approved by the Seoul District Court.

This firm is a major toilet paper and tissue producer in
Korea, and filed for court receivership on June 13, 1998.  
It was granted receivership on October 8th, 1998.

PUNGYON CO: Completes creditor reconciliation
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Pungyon Company completed its
creditor reconciliation. The company's address is 580-5
Shinsa-dong, Kangnam-gu, Seoul and the president is Mr. Kim

SAMSUNG MOTORS: Samsung car workers agree on compromise
Samsung Motors announced Sunday all of its workers agreed
on a package deal guaranteeing their job security and
compensation enabling speedy merger negotiation with Daewoo
motors scheduled on Monday. Samsung Motors also said SM-5
production would be normalized on Friday after Lunar New
Year holidays. Samsung Motors' Pusan plant has remained
idle since Dec. 7. (Digital ChosunIlbo 15-Feb-1999)

SHIN DONG-A GROUP: Owner formally arrested
Shin Dong-A Group owner Choi Soon-young, who had been under
investigation by the prosecution, was formally arrested
Thursday night under the suspicion of smuggling US$165
million out of the country between May 1996 and June 1997
to a U.S. bank in the Bahamas. Prosecutors from Seoul
District Prosecutor's Office said he had fabricated bills
of landing and took out $180 million in export finances
from four domestic banks.

Prosecutors also said Choi used the money to buy a luxury
house in Los Angeles and a personal airplane. Choi was also
suspected of embezzling hundreds of millions of won in
corporate funds for personal use and misappropriating a
huge bank loan. If convicted, Choi could face more than 10
years in jail. Choi is the first conglomerate owner to be
arrested since the inauguration of the Kim Dae-jung
government (Digital ChosunIlbo 12-Feb-1999)

TAESUNG MACHINERY CO: Starts creditor reconciliation
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Taesung Machinery Company started
its creditor reconciliation procedure. The creditors have
until March 16th, 1999 to file their claims. The company's
address is 327-30 Kasan-dong, Keumchon-gu, Seoul and the
president is Mr. Shin Hyun-gyo.


LIEN HOE: To issue shares to fight debt, losses
Malaysian property firm Lien Hoe Corporation Bhd said it
is planning a capital reduction and a restricted new share
issue to overcome a huge debt burden and accumulated

It said in a statement to the Kuala Lumpur Stock Exchange
on Saturday it was planning to cut its capital to 202.61
million Malaysian ringgit (S$90.1 million) from RM270.15
million. This will effectively mean a cut in the face value
of each share to RM0.75 from RM1.

It said the credit of RM67.54 million arising from the
capital reduction would be used to wipe out part of the
accumulated losses of RM153.8 million, the statement said.

After cutting down the capital, the company will issue 20
million new shares of RM1 each representing 10 per cent of
Lien Hoe's paid up capital on a restricted basis to Beta
Holdings Sdn Bhd, a substantial shareholder of the company.

The funds raised will be used to repay debt and service
interest which will fall due on Dec 31. The statement said
Lien Hoe was also planning to sell some of its investment

It said that after the proposals were implemented the
company's gearing ratio would improve to 1.23 from 1.41 at
present. The group's net tangible assets per share would
improve to RM1.05 from RM0.79. (Reuters and Singapore
Business Times 15-Feb-1999)

TAIPING CONSOLIDATED: Asset disposal approved
Taiping Consolidated Bhd's proposed disposal of Lot 10
Shopping Centre, Star Hill Centre and J.W. Marriot Hotel
Kuala Lumpur have been approved by the Securities
Commission with certain condition attached.

In a statement, the company said conditions include Taiping
to obtain a competent legal opinion on whether the proposed
disposal and the use of sale proceeds is valid under the
relevant laws and does not constitute preferential
treatment to the specific group of secured creditors as
well as not prejudicial to the rights of the other
creditors under Taiping's scheme of arrangement under
Section 176 of the Companies Act.

In addition, Taiping is to take all necessary steps to
expedite the restructuring the company's restructuring

Taiping said it is in the process of finalising its scheme
of arrangement. (Business Times 15-Feb-1999)


PHILIPPINE AIRLINES: Near deal with unnamed US carrier
According to the South China Morning Post, PAL's adviser
Peter Foster said PAL is close to sealing a joint service
tie-up with at least one United States carrier while talks
are being held with three carriers at the moment.

He said a "confidential memorandum of understanding" with
the US carrier could be signed within six weeks with the
arrangement to start some time after that. The US carrier
was not named.

He said PAL had already signed a "coach agreement" with
Malaysian Airlines under which the two firms would share
space on flights from Kuala Lumpur to Manila and from Cebu
to Manila.

Mr Foster said PAL had a very strong asset of being the
only airline with daily non-stop flights from Manila to San
Francisco and Los Angeles but admitted an alliance with a
US airline was needed to provide "feeding flights" to PAL's
hubs. He also said partnership with a US frequent-flyer
program is needed in order to attract the frequent flyer
and the business trading community. He said a tie-up with
one carrier would not be enough although he did not say how
many would be needed.

The immediate goal of PAL is to restructure all its debt
under the new rehabilitation plan which is to be submitted
by March 15. The acceptability of the plan by creditors is
crucial for the continued operations of PAL.

A strategic alliance with other carriers was also a crucial
part of the new rehabilitation plan.

PHILIPPINE AIRLINES: No aid from Miyazawa fund
Debt-ridden Philippine Airlines will not receive any
financial assistance from Japan's so-called Miyazawa fund
despite earlier proposals, Finance Secretary Edgardo
Espiritu said here Saturday.

Espiritu said they had dropped plans to tap the Miyazawa
fund to help rehabilitate PAL after the Japanese government
made overtures that the airline should be among the last
priorities for assistance.

He added the government would leave it to PAL to find its
own financial assistance but added that there were three
unnamed investors who were interested in buying into the

The Philippines expects to get 1.4 billion dollars
representing the first tranche in financial support from
the 300-billion-dollar Japanese aid package set up by
Japanese Finance Minister Kiichi Miyazawa to help economies
hardest hit by the Asian crisis.

PAL, weighed down by a debt of more than two billion
dollars, is still trying to forge a rehabilitation plan
that will be accepted by its creditors in order to stay in
the air. (Agence France-Presse 13-Feb-1999)


ALPHATEC: Creditors' plan wins approval; first case ever
A plan to revive Alphatec Electronics Plc has become the
first of its kind to win Civil Court approval under the
modernised Bankruptcy Act.

The court yesterday ruled in favour of the creditors' plan
despite opposition from Charn Uswachoke, the company's
current major shareholder.

It will appoint an administrator of the plan, which was
drafted by consultants PricewaterhouseCoopers.

The company's creditors will convert part of their loans to
Alphatec into equity in the company, becoming the major

A creditors' committee will be established to ensure the
major electronics manufacturer adheres to the plan.

Committee members will come from Krung Thai Bank, Bangkok
Bank, Bangkok Metropolitan Bank, ING Bank, BankThai
(formerly Union Bank of Bangkok), Nakornthon Bank and
Credit Agricole Indosuez.

A new offshore holding company will be formed with AIG, a
United States-based financial service firm, and Investment
AB, the parent company of telecom giant Ericsson, taking up
to 80% of its US$50-million capital. The balance will be
subscribed to by Alphatec's creditors who will swap debt
for shares.

Opposing the plan, Mr Charn said it would benefit only the
creditors and new investors as all core assets of the
company would be transferred to a new firm, leaving only
the debts as Alphatec Electronics' responsibility.

However, the court noted that Mr Charn had not objected to
the plan until the day before the court ruling.

The court also viewed that if Alphatec was allowed to go
bankrupt, the creditors would obtain total repayments
accounting to only about 8% of the total loans. But if the
rehabilitation plan was implemented, the creditors would
get repayments amounting to about 13%. Moreover, the
company's operations would continue and that would benefit
the economy in general, the court ruled. (Bangkok Post

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

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