---

T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Monday, February 22, 1999, Vol. 2, No. 36

                    Headlines


* C H I N A   &   H O N G   K O N G *

CULTURECOM: Starts talks to raise fresh capital
GUANGZHOU FINANCE: Liquidators named for Guangzhou Finance
JET AIR: Fortune arrangement puts Jet Air at $45m
TAK WING: Chairman sells off 25pc stake


* I N D O N E S I A *

LIPPO BANK: Owners pumping in 1t rupiah


* J A P A N *

ALL NIPPON AIRWAYS: Earnings outlook
AOBA LIFE: LAA fails to secure buyer for Aoba Life
ASAHI MUTUAL LIFE: S&P downgrades four life insurers
CASIO COMPUTER: Earnings outlook
ITOCHU CORP: Moody's downgrades Itochu ratings

LONG TERM CREDIT: FRC to transfer Y5.03tr of bad loans
MITSUI LIFE: S&P downgrades four life insurers
MITSUKOSHI: To revamp after golf course loss
NEC CORP: To cut 15,000 jobs, unveils sweeping revamp
NIPPON CREDIT BANK: Diet panel to summon NCB ex-president

PARCO: Earnings outlook
SUMITOMO LIFE: S&P downgrades four life insurers
TOSHIBA CORP: Earnings outlook
TOYOTA MOTOR: Pension fund shortfall
YASUDA MUTUAL LIFE: S&P downgrades four life insurers


* K O R E A *

CHO HUNG BANK: Places itself under government control
SAMICK CONSTRUCTION: Starts creditor reconciliation
SHINSUNG CO: Starts creditor reconciliation


* M A L A Y S I A *

ALOR STAR: Creditor protection given to five firms
HALIM SECURITIES: Creditor protection given to five firms
MALAYSIAN AIRLINES: Managing director retires
MBF HOLDINGS: Asks for trade suspension
MBF NORTHERN: Creditor protection given to five firms

TAIPING SECURITIES: Creditor protection given to five firms
WK SECURITIES: Creditor protection given to five firms


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

APO CEMENT: JG Summit finalizes sale of Apo
PHILIPPINE AIRLINES: PAL creditors like rescue plan
PREMIER CEMENT: Fortune to pursue acquisition plans


* S I N G A P O R E *

FORM HOLDINGS: Plans to revamp businesses and debts


* T H A I L A N D *

CREDIT FONCIER: Credit Foncier ordered closed
QUALITY HOUSE: Expects early approval of restructuring plan
THAI AIRWAYS: SIA's plan could face legal hurdles
THAI GYPSUM: Creditors OK restructuring plan
THAI TELEPHONE: Creditor wants state assistance

TPI GROUP: Sells big stakes in two subsidiaries
TPI POLENE: Asks creditors to swap interest for equity   


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

CULTURECOM: Starts talks to raise fresh capital
-----------------------------------------------
Publishing firm Culturecom Holdings yesterday revealed it
was again looking for fresh capital, after making a $33
million cash call last month. Culturecom, publisher of the
Tin Tin Daily News, said it was "currently in discussion
with an independent third party with respect to the
possibility of a placing of new warrants to independent
investors".

No further information was revealed in its statement.

Culturecom changed hands in December, when Australia-listed
ViaGold Capital bought a 32 per cent interest in the
company from publisher Sally Aw's Sing Tao Holdings.

Culturecom also said it would convene a special general
meeting for shareholders in March, when it hopes to seek a
general mandate to issue and deal shares.

The firm sold shares totalling about 20 per cent of its
issued share capital last month via a rights issue.

Culturecom reported a widening net loss to $31.12 million
for the six months to September, citing plunging
circulation and falling advertising revenues.
(South China Morning Post 19-Feb-1999)


GUANGZHOU FINANCE: Liquidators named for Guangzhou Finance
----------------------------------------------------------
The Asian Wall Street Journal reported that representatives
of KPMG have been appointed by the Hong Kong High Court as
provisional liquidators of Guangzhou Finance Company.  

Guangzhou Finance is the wholly owned subsidiary of
Guangzhou International Trust & Investment Corporation (or
GZITIC), the overseas borrowing arm of Guangzhou, the
capital of the Guangdong province.

Guangzhou Finance also controls GZITIC Hauling Holdings
Ltd. Trading of GZITIC Hauling has been suspended on Hong
Kong's stock exchange following this announcement.  


JET AIR: Fortune arrangement puts Jet Air at $45m
-------------------------------------------------
Fortune Garden Investment has bought 193 million Jet Air
International shares from chairman Peter Yu Kam-ching and
director Yuen Shui Chun at 10.6 cents each and is to make a
general offer for all remaining shares of the company at
the same price.

The deal valued the freight forwarder at $45.4 million.

Fortune Garden is an investment company which was
incorporated on July 2 last year in the British Virgin
Islands. It is owned by a mainland entrepreneur.

The company said that the purchase price was settled
against debts of the same size owed to it by Mr Yu and Ms
Yuen.

It intends to leave Jet Air's existing business and listing
status intact after the ownership change. (South China
Morning Post 19-Feb-1999)


TAK WING: Chairman sells off 25pc stake
---------------------------------------
Troubled property investment and construction firm Tak Wing
Investment (Holdings) said its chairman unloaded a 25.4 per
cent stake in the company to an outside investor for $12
million. The company said chairman Chung Chun-keung will
sell 60 million shares in the company -- at 20 cents per
share -- to Gold Blue Group, a property investment firm.

Mr Chung, who will hold a 21.5 per cent interest in Tak
Wing after the deal is concluded, also agreed to purchase
from Tak Wing its property management arm for an
undisclosed sum.

Standard Chartered Bank this month filed a winding-up
petition against the firm because of unpaid debts totalling
$82 million. (South China Morning Post 19-Feb-1999)


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

LIPPO BANK: Owners pumping in 1t rupiah
---------------------------------------
Indonesia's Lippo Group said yesterday that the existing     
shareholders of Lippo Bank have come up with around one     
trillion rupiah (S$192 million) to meet their share of the
costs of recapitalisation.

"Yes, the money, around one trillion rupiah, is already in
the bank," Lippo Group president Roy Tirtadji, who is also
commissioner of the bank, told reporters after a
shareholders' meeting.

Mr Tirtadji said if the government provided the rest of
recapitalisation funds, it would hold about 75 per cent of
the bank's total shares while non-government shareholders
would hold the rest.

"The government has not yet given (recapitalisation) funds
to Lippo Bank," he said. Last month, Lippo Bank was named
as one of the first 12 banks accepted for the
recapitalisation scheme, with some 3.75 trillion rupiah
earmarked for its bailout.

But Parliament has demanded the government revoke the
decision, saying it smacks of corruption. (Reuters and
Singapore Business Times 19-Feb-1999)


=========
J A P A N  
=========

ALL NIPPON AIRWAYS: Earnings outlook
------------------------------------
Shares of All Nippon Airways Co. fell 7 yen to 336, the
third most active stock with 7.5 million shares traded. The
Asia's second-largest airline said its earnings outlook for
the year through March 31 looks "very severe," as discount
carriers, such as Skymark Airlines Co. and Hokkaido
International Airlines Co. lured away some of its
customers. (Bloomberg 19-Feb-1999)


AOBA LIFE: LAA fails to secure buyer for Aoba Life
--------------------------------------------------
The search for a buyer for Japan's Aoba Life has ended in
failure. The Life Assurers Association of Japan will
confirm at its board meeting today that it will not sell
Aoba Life, which was set up by the association last year to
take over most of the business of Nissan Mutual, a medium-
sized life assurer that collapsed in April 1997.

It represents another blow for international life assurance
companies in their attempt to gain a significant foothold
in Japan.

Companies such as US-based insurance group AIG, and
Artemis, the holding company of Printemps, the French
retailer, were reported to be interested in acquiring Aoba
Life. It is understood that several domestic companies were
also interested.

Aoba's solvency margin -- a key indicator of financial
health -- of 228.7 per cent at the end of March 1998, was
the worst in the sector. (Financial Times 19-Feb-1999)


ASAHI MUTUAL LIFE: S&P downgrades four life insurers
----------------------------------------------------
The Asian Wall Street Journal reported that Standard and
Poor's (S&P) Ratings Group has downgraded the counterparty
credit and financial strength ratings of four Japanese life
insurance companies. The move reflects concern over these
company's weakened balance sheets due to ongoing economic
viability. S&P also reportedly cited the diminishing
credit quality of these firm's loan portfolios.

The affected firms are Asahi Mutual Life Insurance Company,
from BBB- to BB+; Mitsui Life Insurance Company, from BBB-
to BB+; Sumitomo Life Insurance Company, from BBB to BBB-;
and Yasuda Mutual Life, from A to A-.


CASIO COMPUTER: Earnings outlook
--------------------------------
Shares of Casio Computer Co. fell 35 yen to 770. The maker
of watches and calculators is expecting a net loss of about
5.5 billion yen in the year ending March, its first since
going public in 1970, due to the strength of the yen
against the dollar and the slow sales of electronic
watches, Nikkei English News reported. (Bloomberg
19-Feb-1999)


ITOCHU CORP: Moody's downgrades Itochu ratings
----------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investors Services has downgraded the senior debt rating of
the Itochu Corporation from Baa2 to Ba1. Additionally, the
trading corporation's short term prime-2 ratings (as well
as that of its subsidiaries) were downgraded to "not-
prime."  

This move reflects concerns that the deteriorating
environment both overseas and domestically will negatively
affect the operations of Japanese trading companies.


LONG TERM CREDIT: FRC to transfer Y5.03tr of bad loans
------------------------------------------------------
The Financial Reconstruction Commission (FRC) will transfer
5,036.2 trillion yen worth of bad loans and latent losses
held by the nationalized Long-Term Credit Bank of Japan
(LTCB) to a Japanese version of the U.S. Resolution Trust
Corp. to be created in April for liquidation, commission
sources said Friday.

The move to reduce LTCB's bad-loan burden will
substantially improve the financial standing of the failed
bank, paving the way for the FRC to find a financial
institution to buy the bank by around May.

The bad loans and latent losses to be transferred to the
resolution and collection organization represent some 20%
of LTCB's total assets of 24, 602.6 billion yen.

Of the total, the amount of bad loans is 4,716.8 billion
yen while latent losses of LTCB's stockholdings total 319.4
billion yen.

The FRC, however, will not sell loans extended to such
major companies as Daiei Inc., Sogo Co., Kumagai Gumi Co.
and Hazama Corp. to the resolution and collection
organization, and LTCB will continue lending to those
firms, the sources said.

Loans to those firms are believed to include problem ones,
but the FRC decided not to transfer them because such a
move would have a negative impact on the entire economy.

A chain of collapses could be triggered if these borrowers
are judged to be unsound and loans are terminated.

The FRC has screened outstanding loans held by LTCB, which
went under state control last October, and decided to sell
loans which are considered unrecoverable and highly risky,
and those made to collapsed firms.

Half the loans to be transferred to the resolution and
collection organization were extended to LTCB-affiliated
companies. (Kyodo News 19-Feb-1999)


MITSUI LIFE: S&P downgrades four life insurers
----------------------------------------------
The Asian Wall Street Journal reported that Standard and
Poor's (S&P) Ratings Group has downgraded the counterparty
credit and financial strength ratings of four Japanese life
insurance companies. The move reflects concern over these
company's weakened balance sheets due to ongoing economic
viability. S&P also reportedly cited the diminishing
credit quality of these firm's loan portfolios.

The affected firms are Asahi Mutual Life Insurance Company,
from BBB- to BB+; Mitsui Life Insurance Company, from BBB-
to BB+; Sumitomo Life Insurance Company, from BBB to BBB-;
and Yasuda Mutual Life, from A to A-.


MITSUKOSHI: To revamp after golf course loss
--------------------------------------------
Mitsukoshi, a prestigious Japanese department store,
yesterday announced a sweeping restructuring plan in an
attempt to revitalise its business.

It has been badly hurt as consumer demand has dried up amid
the country's worst recession in postwar history. The
company has also been suffering the effects of its over-
extension during the bubble era.

The main item in Mitsukoshi's restructuring plan is a
withdrawal from a failed golf course development project in
Chiba prefecture, one which the company will post a Y11.3bn
extraordinary loss. (Financial Times 19-Feb-1999)


NEC CORP: To cut 15,000 jobs, unveils sweeping revamp
-----------------------------------------------------
NEC Corp, Japan's biggest chipmaker, pledged on Friday to
slash 15,000 jobs from its workforce and shore up its
faltering U.S. personal computer subsidiary after
announcing the biggest loss in its history. One of the
first employees to go will be NEC President Hisashi Kaneko,
who said he would resign effective March 26 to take
responsibility for the company's expected 150 billion yen
($1.25 billion) consolidated net loss in the business year
to March 31.

"With our restructuring efforts and the reshuffling of top
management, we hope to create a revitalised NEC," Kaneko
told a news conference on Friday. NEC Executive Vice
President Koji Nishigaki will replace Kaneko, who will stay
on as an adviser to the company with a seat on the board or
directors.

NEC's dismal performance was due in large part to a special
loss of about 75 billion yen to pay for restructuring at
its Packard-Bell NEC (PB-NEC) unit, a loss-making PC-maker
in the United States.

NEC last year cut PB-NEC's work force in half to 3,000, and
reduced the number of its PC models and distribution
channels, with the aim of making the business profitable in
the next business year. NEC will also purchase the
subsidiary's European operation for about $450 million,
Kaneko said.

PB-NEC was too slow to develop low-priced personal
computers that could keep up with the industry's cut-throat
price competition, but NEC said operations have been
improving since a management change last year.
(Reuters 19-Feb-1999)


NIPPON CREDIT BANK: Diet panel to summon NCB ex-president
---------------------------------------------------------
Senior officials of the House of Representatives Budget
Committee on Friday decided to summon Shigeoki Togo, former
president of the failed Nippon Credit Bank (NCB), next
Thursday as an unsworn witness over the approval of
infusion of 60 billion yen of public funds into the bank,  
committee members said.

Also summoned as unsworn witnesses will be former Bank of
Japan Governor Yasuo Matsushita and Kimio Yamaguchi, former
head of the Finance Ministry's Banking Bureau, the members
said.

The summoning is aimed at investigating allegations the
Finance Ministry deliberately concealed the bank's state of
balance sheet when the capital injection into the bank was
approved in March last year. (Kyodo News 18-Feb-1999)


PARCO: Earnings outlook
-----------------------
Shares of Parco fell 5 yen to 410, a 52-week low. The
operator of fashion shopping centers cut group net forecast
for the year ending Feb. 28 to a loss of 3.3 billion yen
from an earlier forecast of a profit of 450 million yen.
That's lower than Toyo Keizai's forecast of an 826 million
yen profit. (Bloomberg 19-Feb-1999)


SUMITOMO LIFE: S&P downgrades four life insurers
------------------------------------------------
The Asian Wall Street Journal reported that Standard and
Poor's (S&P) Ratings Group has downgraded the counterparty
credit and financial strength ratings of four Japanese life
insurance companies. The move reflects concern over these
company's weakened balance sheets due to ongoing economic
viability. S&P also reportedly cited the diminishing
credit quality of these firm's loan portfolios.

The affected firms are Asahi Mutual Life Insurance Company,
from BBB- to BB+; Mitsui Life Insurance Company, from BBB-
to BB+; Sumitomo Life Insurance Company, from BBB to BBB-;
and Yasuda Mutual Life, from A to A-.


TOSHIBA CORP: Earnings outlook
------------------------------
Shares of Toshiba Corp. fell 1 yen to 714 on an inflow of
138.41 million yen. The electronics maker said it will post
a parent net loss of 20 billion yen, instead of a net
profit of 12 billion yen, as predicted earlier, and will
break even on group net basis, unchanged from its earlier
forecast. The Nihon Keizai newspaper earlier reported that
Toshiba is likely to report a group net loss of 16 billion
yen to 17 billion yen for the year through March, its first
group net loss in 23 years, because of the yen's strength
against the dollar and weak sales in Japan. (Bloomberg
19-Feb-1999)


TOYOTA MOTOR: Pension fund shortfall
------------------------------------
Shares of Toyota Motor Corp. fell 20 yen to 2,990. Japan's
largest automaker said it has a pension fund shortfall of
about 300 billion yen, the Nihon Keizai newspaper reported.
The company is considering selling stocks in its investment
portfolio to offset the losses. (Bloomberg 19-Feb-1999)


YASUDA MUTUAL LIFE: S&P downgrades four life insurers
-----------------------------------------------------
The Asian Wall Street Journal reported that Standard and
Poor's (S&P) Ratings Group has downgraded the counterparty
credit and financial strength ratings of four Japanese life
insurance companies. The move reflects concern over these
company's weakened balance sheets due to ongoing economic
viability. S&P also reportedly cited the diminishing
credit quality of these firm's loan portfolios.

The affected firms are Asahi Mutual Life Insurance Company,
from BBB- to BB+; Mitsui Life Insurance Company, from BBB-
to BB+; Sumitomo Life Insurance Company, from BBB to BBB-;
and Yasuda Mutual Life, from A to A-.


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

CHO HUNG BANK: Places itself under government control
-----------------------------------------------------
The Korea Herald reported that the Cho Hung Bank has
accepted a cash injection of 2.15 trillion won from the
Korean government. According to the Financial Supervisory
Service (FSS, formerly the Financial Supervisory
Commission, FSC), the government's stake in the bank is now
91.1 percent.  

Furthermore, as a result of this capital injection, Cho
Hung's capital adequacy ratio has increased from minus 1.5
percent at the end of last year to a positive 12 percent.  
The bank will also have to undergo further manpower cuts
and other restructuring measures.

In June of last year, the FSC established an evaluating
committee to diagnose 12 commercial banks which failed to
meet the minimum 8 percent capital adequacy requirements
set by the Bank for International Settlements (BIS). It
issued closure orders for five banks, and has asked seven
other banks (including Cho Hung) to provide drastic self
rehabilitation plans. These plans included payroll cuts,
management layoffs, capital increases or decreases, and
mergers with stronger banks. The FSC reportedly plans to
keep alive only those banks that are able to meet the
8 percent BIS capital adequacy ratio by June, 2000 via
these new rehabilitation plans.  


SAMICK CONSTRUCTION: Starts creditor reconciliation
---------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Samick Construction Company has started
creditor reconciliation procedure.


SHINSUNG CO: Starts creditor reconciliation
-------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Shinsung Company was allowed to start
its creditor reconciliation procedure by the Changwon
District Court.


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

ALOR STAR: Creditor protection given to five firms
--------------------------------------------------
The Asian Wall Street Journal reported that Pengurusan
Danaharta Nasional Bhd., the country's bad debt bank, has
appointed special administrators and provided a year-long
period of protection from creditors for five financially
troubled securities companies. The special administrators
will assume control and management of the assets and
affairs of these firms. These special administrators
perform a role that is different from that of receivership
and liquidation, as the administrators are charged with the
survival of the company, or at least achieving a more
advantageous realization of assets than would be achieved
by winding up the company.

The affected companies are Alor Star Securities, with Ernst
& Young as administrator; Halim Securities, with
PricewaterhouseCoopers as administrator; MBf Northern
Securities, with KPMG Peat Marwick as administrator;
Taiping Securities, with KPMG Peat Marwick as
administrator; and WK Securities, with Ernst & Young as
administrator.


HALIM SECURITIES: Creditor protection given to five firms
---------------------------------------------------------
The Asian Wall Street Journal reported that Pengurusan
Danaharta Nasional Bhd., the country's bad debt bank, has
appointed special administrators and provided a year-long
period of protection from creditors for five financially
troubled securities companies. The special administrators
will assume control and management of the assets and
affairs of these firms. These special administrators
perform a role that is different from that of receivership
and liquidation, as the administrators are charged with the
survival of the company, or at least achieving a more
advantageous realization of assets than would be achieved
by winding up the company.

The affected companies are Alor Star Securities, with Ernst
& Young as administrator; Halim Securities, with
PricewaterhouseCoopers as administrator; MBf Northern
Securities, with KPMG Peat Marwick as administrator;
Taiping Securities, with KPMG Peat Marwick as
administrator; and WK Securities, with Ernst & Young as
administrator.


MALAYSIAN AIRLINES: Managing director retires
---------------------------------------------
Malaysian Airline System Bhd (MAS) said yesterday that its
managing director Wan Malek Ibrahim has opted for early
retirement. MAS said in a statement that Wan Malek was on
leave from Feb 15 to May 15 this year, but he will continue
to serve as a director on the board of MAS and its
subsidiaries. The national airline is in the midst of
pulling together a restructuring plan for its huge debt. It
has debts of around RM11.8 billion following aggressive
aircraft purchases over the last several years. (Reuters
and Singapore Business Times 19-Feb-1999)


MBF HOLDINGS: Asks for trade suspension
---------------------------------------
MBf Holdings asked the Kuala Lumpur Stock Exchange to halt
trading in its shares on Friday pending an announcement.
MBf Holdings, with businesses in property development and
financial services, didn't say when it will make the
announcement. With each request, a Malaysian company is
allowed to halt trading of its shares for up to 10 trading
days before making an announcement. MBf Holdings shares
fell 0.5 sen to 24 sen. The announcement was made after the
market closed. (Bloomberg and Singapore Business Times
19-Feb-1999)


MBF NORTHERN: Creditor protection given to five firms
-----------------------------------------------------
The Asian Wall Street Journal reported that Pengurusan
Danaharta Nasional Bhd., the country's bad debt bank, has
appointed special administrators and provided a year-long
period of protection from creditors for five financially
troubled securities companies. The special administrators
will assume control and management of the assets and
affairs of these firms. These special administrators
perform a role that is different from that of receivership
and liquidation, as the administrators are charged with the
survival of the company, or at least achieving a more
advantageous realization of assets than would be achieved
by winding up the company.

The affected companies are Alor Star Securities, with Ernst
& Young as administrator; Halim Securities, with
PricewaterhouseCoopers as administrator; MBf Northern
Securities, with KPMG Peat Marwick as administrator;
Taiping Securities, with KPMG Peat Marwick as
administrator; and WK Securities, with Ernst & Young as
administrator.


TAIPING SECURITIES: Creditor protection given to five firms
-----------------------------------------------------------
The Asian Wall Street Journal reported that Pengurusan
Danaharta Nasional Bhd., the country's bad debt bank, has
appointed special administrators and provided a year-long
period of protection from creditors for five financially
troubled securities companies. The special administrators
will assume control and management of the assets and
affairs of these firms. These special administrators
perform a role that is different from that of receivership
and liquidation, as the administrators are charged with the
survival of the company, or at least achieving a more
advantageous realization of assets than would be achieved
by winding up the company.

The affected companies are Alor Star Securities, with Ernst
& Young as administrator; Halim Securities, with
PricewaterhouseCoopers as administrator; MBf Northern
Securities, with KPMG Peat Marwick as administrator;
Taiping Securities, with KPMG Peat Marwick as
administrator; and WK Securities, with Ernst & Young as
administrator.


WK SECURITIES: Creditor protection given to five firms
------------------------------------------------------
The Asian Wall Street Journal reported that Pengurusan
Danaharta Nasional Bhd., the country's bad debt bank, has
appointed special administrators and provided a year-long
period of protection from creditors for five financially
troubled securities companies. The special administrators
will assume control and management of the assets and
affairs of these firms. These special administrators
perform a role that is different from that of receivership
and liquidation, as the administrators are charged with the
survival of the company, or at least achieving a more
advantageous realization of assets than would be achieved
by winding up the company.

The affected companies are Alor Star Securities, with Ernst
& Young as administrator; Halim Securities, with
PricewaterhouseCoopers as administrator; MBf Northern
Securities, with KPMG Peat Marwick as administrator;
Taiping Securities, with KPMG Peat Marwick as
administrator; and WK Securities, with Ernst & Young as
administrator.


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

APO CEMENT: JG Summit finalizes sale of Apo
-------------------------------------------
Publicly listed JG Summit Holdings, Inc. sold on Wednesday
its entire shareholdings in cement subsidiary, Apo Cement
Corp., to both local and foreign affiliates of Mexico-based
Cemex S.A. de CV for $401.5 million.

In a disclosure to the local stock exchange, JG corporate
secretary Emmanuel C. Rojas, Jr. said the buyers include
Triple Dime Holdings, Inc., a Philippine-based affiliate of
Cemex.

The Gokongwei-owned cement firm, which used to hold 99.9%
stake in Apo, divested its equity and debt interests to
Triple Dime for $191.5 million.

Analysts told BusinessWorld yesterday that the company
might have been formed by Cemex as an acquisition vehicle
since Philippine laws only allow 40% foreign ownership in
public utilities.

Meanwhile, the rest of Apo's loans including its foreign
currency denominated-debts worth $210 million were absorbed
by a number of foreign affiliates which the company did not
identify. (BusinessWorld 19-Feb-1999)


PHILIPPINE AIRLINES: PAL creditors like rescue plan
---------------------------------------------------
The Asian Wall Street Journal reported that the creditors
of the Philippine Airlines (PAL) were receptive to a
revised rescue plan presented to them at a meeting in
Washington DC this week. A consortium of European financial
institutions (who are owed $1.2 billion by PAL) and the
U.S. Export-Import Bank (which is owed $340 million) were
at this meeting.  

The article stated that the revised plan includes reducing
the PAL fleet from 54 to 24 aircraft, increasing aircraft
utilization by up to 20 percent, arranging marketing
alliances with other airlines, and consolidating its
operations at the new Manila International Airport.  

PAL has agreed with its major creditors to submit a new
rehabilitation plan by March 15.  


PREMIER CEMENT: Fortune to pursue acquisition plans
---------------------------------------------------
Listed Fortune Cement Corp. (FCC) will pursue its long-
delayed plan of acquiring Premier Cement Corp. with
proceeds from its 2.6-billion-peso convertible notes
issuance to Blue Circle Philippines, Inc.

FCC corporate secretary Emmanuel C. Paras said in a
disclosure yesterday that aside from debt reduction, the
management will also be using the proceeds to buy Premier.

"FCC's total liabilities as of September last year reached
4.28 billion (Philippine) pesos (PhP). These include bank
loans secured US dollar-denominated loans with interest at  
prevailing market rate and unsecured loans with interest at
prevailing market rate, amounting to PhPl.6 billion."

Since December 1997, FCC said it is interested to buy the
Cebu-based cement firm which was then planning to expand
its one million per month-capacity.

Premier Cement is the only white cement manufacturer in the
country. Sources said the company held off expansion plans
due to the prevailing cement crisis.

Analysts told BusinessWorld yesterday that aside from a
high-quality quarry, FCC might also be interested to
acquire Premier in order to transform the company into gray
cement manufacturer. (BusinessWorld 19-Feb-1999)


=================
S I N G A P O R E
=================

FORM HOLDINGS: Plans to revamp businesses and debts
---------------------------------------------------
Form Holdings is seeking professional help to revamp its       
businesses and debts after plunging into the red in its
last interim period.

The music and video production company yesterday said it
has appointed accounting firm Price Waterhouse to advise
and help it develop and implement "appropriate" strategies
for the group's core business, the divestment of certain
non-core assets and business as well as the restructuring
of its borrowings.

The Sesdaq-listed group added that it has started
discussions with its principal bankers in relation to the
plan. Details of the plan are likely to be announced
shortly, it said.

Form had reported a half-year loss of $2.9 million for the
six months to last June, compared to a profit of $637,000
previously. It blamed the loss on a decline in turnover,
increased provisions for doubtful debts and stock
obsolescence, increased interest costs and higher
depreciation charges.

The company, whose main artists include Backstreet Boys, is
joining the club of troubled companies trying to
restructure their loans and operations.
(Singapore Business Times 19-Feb-1999)


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

CREDIT FONCIER: Credit Foncier ordered closed
---------------------------------------------
The Asian Wall Street Journal reported that the Credit
Foncier L.P.N. Company has been ordered to be closed by the
Thai Finance Ministry. The ministry had rejected this
housing loan company's restructuring plan. The firm's
operations were suspended last April, and as of October 31,
the company reportedly had 735.5 million baht in
liabilities and 645.8 million baht in assets.  

Depositors and creditors have been instructed to submit
their claims to the Bank of Thailand's rescue fund for
financial institutions.


QUALITY HOUSE: Expects early approval of restructuring plan
-----------------------------------------------------------
Quality House (QH) expects its debt restructuring plan
would be approved by creditors by early next month, said QH
Executive Vice President Suwanna Buddhaprasert.

A group of creditors, with over 70 percent of the total 10
billion baht of debt, already agreed with the plan,
approval of which is pending from each creditor board.

Earlier, a rumor spread that QH's debt restructuring plan
was deadlocked because of creditors' refusal to accept
large losses.

"Our creditors agree with the plan because none of the
losses will be substantial," Suwanna said.

Under the plan, short-term loans, which account for about
10 percent of total debts, are to be rolled over, while
interest rates are to be reduced together with a conversion
of debt into equity.

The program would bring down the company's debt to equity
ratio from 2:1 to less than 1:1, she said.

QH yesterday reported to the Stock Exchange of Thailand
(SET) that it had already sold 11.14 million new shares to
Dhana Siam Securities at 10 baht apiece.

The shares are part of QH's total 60 million capital
increased shares.

Its current capital is 3.034 billion baht, of which 2.088
billion baht is paid-up.

Suwanna said that Dhana Siam Securities, which was split
from the defunct Dhana Siam Finance and Securities, has
already agreed with QH's debt restructuring plan.

She said that QH would suspend new investment for at least
3 years and focus on its existing projects, of which 50
percent have already been sold.

Securities One (S-ONE) Executive Director Charnchai
Kongthongluck said acquisition of QH's 11.14 million shares
by Dhana Siam Securities is a direct investment -- not a
debt for equity swap. S-One has been appointed as the
financial advisor to arrange QH's debt restructuring plan.
Charnchai added that, as part of QH's plan to convert debt
into equity, some debt would be converted into convertible
debentures. (Business Day [Thailand] 19-Feb-1999)


THAI AIRWAYS: SIA's plan could face legal hurdles
-------------------------------------------------
Singapore Airlines' plan to buy into Thai Airways
International could fly into some legislation turbulence.

Thai Transport and Communications Minister Suthep
Thaugsuban was quoted by Reuters yesterday as saying that
the Thai government's hands may be tied because the
country's state enterprise laws did not allow the Thai
carrier to accept strategic partners that were also
business competitors.

He told reporters in Bangkok that SIA officials had
recently called on him to express interest in buying shares
in Thai Airways.

"I am afraid that Thai Airways' privatisation plan closes
the door to a joint venture with Singapore Airlines, which
is regarded as a major competitor in Asia.

"They have made several similar approaches in the past but
I have explained to them that we are still in the process
of selecting advisers for our future share offers," Mr
Suthep said.

However, last June, the Thai Cabinet had debated Singapore
Airlines' proposal to buy a 25 per cent stake in Thai
Airways International. It said then it would not restrict
the sale of the airline's stock to members of the airline
grouping, Star Alliance, of which Thai is a member.

Star Alliance members, such as Lufthansa, United Airlines,
and the Scandinavian Airlines System, are among the foreign
partners which have been reported to be interested in a
stake in Thai.

The Thai government, which now owns 93 per cent of the
country's national carrier, had said it planned to trim its
holding to about 70 per cent for a start. Then, over the
next three to five years, it would sell another 20 per cent
equity to the public, bringing its stake to 50 per cent.
(Singapore Business Times 19-Feb-1999)


THAI GYPSUM: Creditors OK restructuring plan
--------------------------------------------
The Asian Wall Street Journal reported that Thai Gypsum
Products PCL has reached an agreement with Thai Farmers
Bank PCL, its major creditor to develop a debt-
restructuring plan. This plan will reportedly involve a
strategic foreign partner.

The article suggested that the foreign investor will be
brought in to address capital, technology, and operational
requirements of Thai Gypsum.  

BPB Gypsum BV, a unit of the BPB PCL group of the United
Kingdom has recently become the major shareholder of one of
Thai Gypsum's affiliates, Shanghai Orient Gypsum Company
after investing $24.7 million.


THAI TELEPHONE: Creditor wants state assistance
-----------------------------------------------
A creditor of Thai Telephone and Telecommunication
(TT&T) has called on the government to speed up the
conversion of the company's revenue-sharing concession and
resolve its debt-restructuring plan. Akihiko Sono,
president of Sumitomo Corp Thailand, made the request
yesterday to Suthep Thueksuban, the minister of transport
and communications.

Mr Suthep said that the Japanese creditor was concerned
about TT&T's status and feared that if nothing was done
to assist the company, the problem would become more
complicated.

But the minister said the TT&T problem had to be dealt
with carefully, as it would be a precedent for the
conversion of other concessions with private telecom
companies.

He also told the Japanese creditor that the conversion
guidelines had been fixed in the telecom master plan
approved by the cabinet, and in compliance with
government's plan to liberalise the telecommunications
industry. (Bangkok Post 19-Feb-1999)


TPI GROUP: Sells big stakes in two subsidiaries
-----------------------------------------------
Financial difficulties caused by debts of over $4 billion
has forced Thai Petrochemical Industry (TPI) Group to allow
its foreign partner to acquire a major stake in two of its
subsidiaries. New funds from capital-increase programs for
Thai Nitrate (TNC) and Thai Carpolactam (TCL), which are
operating the largest production facilities of their kinds
in Southeast Asia, were worth about 1 billion baht,
according to TNC General Manager Vorapong Sirikulchaya
nont.

Norway-based Dyno Industrier ASA agreed in principle to pay
250 million baht to double the capital of TNC from its
existing 250 million baht to 500 million. The capital
increase was aimed at reducing its financial burden of 1.2
billion baht, as well as preparing the company for future
competition. After the increase, TPI Polene, the cement
side of the group, will see its ownership in TNC diluted
from the current 75 percent to 40 percent, while Dyno's
interest will jump from 25 percent to 60. The capital
increase is expected to be completed within the next month,
he said. TNC has invested 1.4 billion baht in its plant,
which has the capacity to produce 70,000 tonnes of nitric
acid and 70,000 tonnes of ammonium nitrate per year.

The company requires about 200 million baht of working
capital per month, as well as the existing monthly interest
payment, about 100 million baht. Meanwhile, TCL General
Manager Kaweepoj Woraymgyong said the company would receive
an additional capital injection of $20 million from its
Japanese partners, including Ube Industries and Marubeni.

The injection would be the third round of TCL's capital
increases since early last year. After the move, the TPI
group will see its 51-percent stake shrink to 36 percent,
while Ube Industries and Marubeni will hold the rest, from
their current ownership of 36 percent. TCL needs to bring
in fresh capital in order to reduce its debt burden of
about $400 million. Kaweepoj said the company was suffering
from a slumping market for its main products, including
carpolactam and ammonium sulphate, caused by the cheaper
products being dumped by Europe and Russia. Currently, the
carpolactam price is about $900 per tonne, compared with
$1,400 per tonne in 1996, while the price of ammonium
sulphate has declined from $110 per tonne to $70 per tonne.

Using a total investment of about 10 billion baht, TCL has
the capacity to produce 70,000 tonnes of carpolactam, while
280,000 tonnes of ammonium sulphate is a by-product.
Meanwhile, the regional economic crisis has resulted in a
declining demand for TCL's products from its forecasts. TLC
earlier issued a prediction that demand of carpolactam
would increase from 40,000 tonnes per year in 1996 to
70,000 tonnes this year. However, the anticipated rise did
not materialize, and the level of demand has remained
relatively constant until now. (Business Day [Thailand]  
19-Feb-1999)


TPI POLENE: Asks creditors to swap interest for equity   
------------------------------------------------------
The Asian Wall Street Journal reported that TPI Polene, a
unit of Thai Petrochemical Industry PCL (TPI), has asked
its creditors to take equity in lieu of interest payments,
as well as to extend the total repayment period to 10 years
as part of a proposed restructuring plan.

TPI Polene is offering its creditors new shares that would
amount to 20 percent of the company's enlarged share
capital in exchange for not receiving accrued interest
payments up to the end of 1998 as well three years of
future interest under a new restructuring scheme. The plan
also calls for the suspension of principle payments this
year, and an extension of total repayments until the year
2008.  

However, the article cited analysts as saying that TPI
Polene's 140-odd creditors are unlikely to accept this
proposal as this essentially is a requests to convert at
least 20 billion baht of debt into about 100 million new
shares at a rate that is roughly four times their per share
book value.  

TPI Polene's $1.3 billion dollar debt that is only a part
of the total $4 billion in debts that Thai Petrochemical
Industry PCL owes to many of the same creditors. TPI
Polene's debt restructuring plan is considered critical to
TPI's efforts to deal with these same creditors. Last
December, these creditors failed to approve by a narrow
margin an earlier restructuring plan. Thai law requires
that creditors accounting for 75 percent of the debt
involved approve any restructuring plan.

In October of 1997, TPI, and its unit TPI Polene PCL, began
an indefinite suspension of the repayment of the foreign
currency loans. Following the Thai effective devaluation of
the baht on July 2, 1997, TPI's foreign debts expanded,
while revenues and sales fell as the Thai economy
contracted.


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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