---

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, March 1, 1999, Vol. 2, No. 41

                    Headlines


* C H I N A   &   H O N G   K O N G *

CREASIA ADVERTISING GROUP: Winding-up petition
FIRST PACIFIC: Sells subsidiary to further restructuring
FORTLINK FAR EAST LIMITED: Winding-up petition
FPB BANK: Costs, bad debts slash FPB profit
FUJIAN ENTERPRISES: Mainland window firms sued

GOLDEN CODE INVESTMENTS: Notice to creditors to prove debts
GUANGDONG ENTERPRISES: Creditors safe from discount
GUANGDONG ENTERPRISES: No conflict of interest: Goldman
GUANGDONG INTERNATIONAL: Assets probably lower
GUIJIANG ENTERPRISES: Mainland window firms sued

HUA RONG (HOLDINGS): Mainland window firms sued
HUA RONG TOURISM: Mainland window firms sued
JIANG NAN: Mainland window firms sued
OSCAR FURNITURE MANUFACTURERS: Winding-up petition
TERMBRAY INDUSTRIES: Kingboard subsidiary files writs

VAST CITY ENTERPRISES: Mainland window firms sued
WU YIBO: Mainland window firms sued


* I N D O N E S I A *

PT ASTRA INTERNATIONAL: Astra to meet creditors
PT BANK AKEN: Central bank staff sent to Bank Aken
PT BANK SAHID GAJAH PERKASA: Clearing actions stopped


* J A P A N *

BANDAI: Results announcement
GENERAL SEKIYU KK: Results announcement
MISAWA RESORT: Results announcement
MITSUBISHI ELECTRIC: Results announcement
MITSUBISHI MATERIALS: Results announcement

LONG TERM CREDIT: To trim assets to Y15.6 tr. by Sept.
OKI ELECTRIC: Results announcement
RENOWN LOOK: Results announcement
SAKURA BANK: Unveils revamp, taking 990b yen loan charge
TOKYO DOME: Results announcement

TSUGAMI CORP: Results announcement
TOKYU CORP: Results announcement
VICTOR COMPANY: Results announcement


* K O R E A *

HANBO IRON & STEEL: Sale delayed at least one more month
HAITAI ELECTRONICS: To reduce capital by 90 pct


* M A L A Y S I A *

MBF FINANCE: MBf seeks $6b recapitalisation


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

PHILIPPINE GLOBAL: Smart Communications to cut tie
PHILIPPINE TELEPHONE: Smart Communications to cut PT&T tie


* S I N G A P O R E *

HIAP MOH CORP: Hiap Moh hit by Aussie project
PRESSCRETE: Earnings dive 76%


* T H A I L A N D *

NATIONAL FERTILISER: In debt-for-equity deal
THAI PETROCHEMICAL: Lenders back debt revamp plan
UNITED COMMUNICATION: Reaches debt agreement


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

CREASIA ADVERTISING GROUP: Winding-up petition
----------------------------------------------
A petition for the winding up of Creasia Advertising Group
(Greater China) Company Limited was presented to the High
Court on  Dec 29, 1998 by  Time Inc., a corporation duly
incorporated in the State of Delaware, the United States
of America, and having a place of business in Hong Kong at
34th Floor, Citicorp Centre, 18 Whitfield Road, Causeway
Bay, Hong Kong, and the said petition is directed to be
heard before the court at 11:00 am on  Mar 10, 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, Johnson Stokes & Master at 18th Floor, Prince's
Building, 10 Chater Road, Hong Kong, on payment of the
regulated charges for the same.


FIRST PACIFIC: Sells subsidiary to further restructuring
--------------------------------------------------------
Hong Kong-based conglomerate First Pacific Co. Ltd. said
yesterday it had sold one of its units and reshuffled
management in an ongoing restructuring exercise.

FPD Guardforce Holdings Ltd. was sold to Williams Plc for
120 million US dollars, First Pacific said in a statement.

It called the sale a further step in the company's
restructuring process, "which is refocusing the group's
investments on a select group of brand-oriented blue chip
Asian companies that dominate their local markets, or
possess the potential to do so." (Agence France-Presse and
Business Day [Thailand] 26-Feb-1999)


FORTLINK FAR EAST LIMITED: Winding-up petition
----------------------------------------------
A petition for the winding up of Fortlink Far East Limited
was presented to the High Court on Feb 12 by Lung Wing Tak
of Room 1052, Tip Yee House, Butterfly Estate, Tuen Mun,
New Territories, and the said petition is directed to be
heard before the court at 11:00 am on April 14 and any
creditor or contributory of the said company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


FPB BANK: Costs, bad debts slash FPB profit
-------------------------------------------
High funding costs and an increase in provisions pushed FPB
Bank Holdings' profit down 72.5 per cent, prompting the
group to aggressively reduce its loan book by 26.7 per cent
to preserve its capital position.

Attributable profit for the year to December was $107.04
million, down from the previous $390.2 million.

The group, which operates through wholly owned First
Pacific Bank, is particularly sensitive to volatilities in
interbank rates because 80 per cent of its funding comes
from issuance of floating rate certificates of deposit.

The sale allowed the group to write back $228 million in
general provisions, of which $63 million was added to the
profit and loss account, reducing the provisions charge for
bad and doubtful debt to $177.29 million. (South China
Morning Post 26-Feb-1999)


FUJIAN ENTERPRISES: Mainland window firms sued
----------------------------------------------
According to the South China Morning Post, Fujian
Enterprises, the Fujian government's Hong Kong window
company, was asked by syndicate members of a US$70 million
loan arranged by Standard Chartered Bank to appoint no
later than today a financial adviser, or the loan would be
accelerated and further action will be taken. The company
has asked creditor banks to extend its grace period
until March 26 to submit a restructuring proposal and
appoint a financial adviser. In a letter to members of the
US$70 million syndicate loan, Fujian Enterprises said it
would ask Fujian provincial government officials to meet
with creditor banks to explain its stance.


GOLDEN CODE INVESTMENTS: Notice to creditors to prove debts
-----------------------------------------------------------
The creditors of Golden Code Investments Limited, which is
being voluntarily wound up, are required on or before Mar
31 to send in their names, addresses and particulars of
their debts or claims to the Liquidators of the said
company  at 29th Floor, Wing On Centre, 111 Connaught Road
Central, Hong Kong, and if so required by notice in writing
from the liquidators, are personally or by their solicitors
to come in and prove their debts or claims at such time and
place specified in such notice, or in default thereof, they
will be excluded from the benefit of any distribution
before such debts are proved. Liquidator: Kong Chi How,
Johnson.


GUANGDONG ENTERPRISES: Creditors safe from discount
---------------------------------------------------
According to the South China Morning Post, a source close
to the Guangdong provincial government said GDE would not
ask creditors for a discount on principal repayments at a
meeting scheduled for Monday and had no plans to attach
conditions for waiving a haircut. It remains unclear
whether interest payments might be cut or by how long the
debt repayment period might be lengthened.

The sources said the supply of Dongjiang water would
definitely be injected into GDE as part of the asset
restructuring plan. This could provide about 2.5 billion
yuan a year in cash flow. The source would not reveal the
cash flow level necessary for assets to be injected.

Other possible injection targets include two bridges and
two roads held by New World-Guangdong Highway Investments,
the western section of the Shenzhen-Shantou Expressway and
the Foshan-Kaiping Expressway.

Under the restructuring plan, about 15 billion yuan of
cash-generating assets would be injected into GDE in a swap
of up to 14 billion yuan of non-performing assets which
would be set aside to be handled by an asset management
company.

The source said Guangdong was prepared to sell up to 49 per
cent of GDE as part of the restructuring process and talks
regarding a possible stake sale was in progress.

GDE's financial adviser, Goldman Sachs, is to take up to
US$20 million in shares, which would be less than 5 per
cent of GDE's capital.

The source said the first phase of restructuring would
mainly involve GDE and not its five listed arms which
include Guangdong Investment and Guangnan (Holdings).
Restructuring involving the listed vehicles would
be considered carefully against possible impact on the
market. It is understood ICEA Finance Holdings will be the
adviser on the restructuring of Guangdong Investment but
whether Guangnan will need an adviser remains unknown.


GUANGDONG ENTERPRISES: No conflict of interest: Goldman
-------------------------------------------------------
According to the Hong Kong Standard, chairman of Goldman
Sachs yesterday denied conflict of interest in advising
indebted Chinese company GDE but due to the nature of the
assignment and the complexity, specific comment had to be
deferred.

Goldman is advising GDE, which is owned by the Guangdong
provincial government, on a debt restructure and plans to
take a stake in the company once the restructure is
complete, a move that has rankled some creditors.

Goldman Sachs and GDE are to meet GDE's creditors on the
restructuring plan on Monday.


GUANGDONG INTERNATIONAL: Assets probably lower
----------------------------------------------
According to the South China Morning Post, the value of
assets at bankrupt Gitic is expected to be even less than
the previously announced figure, thus further lowering the
recovery rate for creditors from the earlier estimated
50-plus per cent.

A source close to the provincial government said updated
financial information on the company had been prepared by
KPMG and will be announced in the next week or so.

Liabilities as shown in the latest information remained at
36.16 billion yuan, similar to figures disclosed last
month, which said the figure for assets was 21.47 billion
yuan.

A lot of contingent liabilities, including those related to
property deals, had yet to be revealed and are not included
in the latest summary.


GUIJIANG ENTERPRISES: Mainland window firms sued
------------------------------------------------
According to the South China Morning Post, Guijiang
Enterprises, Jiang Nan and Wu Yibo are being sued by the
Bank of Communications for HK$8 million. Guijiang
Enterprises is the Guangxi government's Hong Kong window
company.


HUA RONG (HOLDINGS): Mainland window firms sued
-----------------------------------------------
According to the South China Morning Post, the Fuzhou
government's Hong Kong window company, Hua Rong (Holdings)
is being sued by Hua Chiao Commercial Bank for HK$2.36
million. Also being sued in the writ are Hua Rong Tourism,
Chen Tianming and Ha Wan-yick. Hua Rong has also been
served with a writ by Shanghai Industrial Investment
Holdings claiming about HK$18.1 million earlier this month.
It is to meet creditor banks next month about its debt and
asset restructuring.


HUA RONG TOURISM: Mainland window firms sued
--------------------------------------------
According to the South China Morning Post, the Fuzhou
government's Hong Kong window company, Hua Rong (Holdings)
is being sued by Hua Chiao Commercial Bank for HK$2.36
million. Also being sued in the writ are Hua Rong Tourism,
Chen Tianming and Ha Wan-yick. Hua Rong has also been
served with a writ by Shanghai Industrial Investment
Holdings claiming about HK$18.1 million earlier this month.
It is to meet creditor banks next month about its debt and
asset restructuring.


JIANG NAN: Mainland window firms sued
-------------------------------------
According to the South China Morning Post, Guijiang
Enterprises, Jiang Nan and Wu Yibo are being sued by the
Bank of Communications for HK$8 million. Guijiang
Enterprises is the Guangxi government's Hong Kong window
company.


OSCAR FURNITURE MANUFACTURERS: Winding-up petition
--------------------------------------------------
A petition for the winding up of Oscar Furniture
Manufacturers Limited was presented to the High Court on  
Jan 11 by Yau Fook Hong Company Limited whose registered
office is situate at Top Floor, Chinachem Golden Plaza, 77
Mody Road, Tsimshatsui East, Kowloon, and the said petition
is directed to be heard before the court at 9:30 a.m. on  
Mar 24, and any creditor or contributory of the said  
company desirous to support or oppose the making of an
order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by the
Solicitors for the Petitioner, Ford, Kwan & Company, Suites
1505-1508, Chinachem Golden Plaza, 77 Mody Road,
Tsimshatsui East, Kowloon, on payment of the regulated
charges for the same.


TERMBRAY INDUSTRIES: Kingboard subsidiary files writs
-----------------------------------------------------
According to the Hong Kong Standard, a writ has been filed
against subsidiaries owned by Termbray Industries
International to demand for US$1.6 million to pay for goods
supplied. The plaintiff Kingboard Laminates is a wholly-
owned subsidiary of Kingboard Chemical Holdings.


VAST CITY ENTERPRISES: Mainland window firms sued
-------------------------------------------------
According to the South China Morning Post, Vast City
Enterprises, together with guarantors Jialing Investment
Development (China) -- controlled by the Sichuan
government's Hong Kong window company Jialing (HK) -- Cao
Hong and Shi Liang are being sued by Asia Commercial Bank
in a property mortgage deal.


WU YIBO: Mainland window firms sued
-----------------------------------
According to the South China Morning Post, Guijiang
Enterprises, Jiang Nan and Wu Yibo are being sued by the
Bank of Communications for HK$8 million. Guijiang
Enterprises is the Guangxi government's Hong Kong window
company.


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

PT ASTRA INTERNATIONAL: Astra to meet creditors
-----------------------------------------------
The Asian Wall Street Journal reported that representatives
of PT Astra International, an Indonesian conglomerate in
the automotive and agro-industry sectors, plans to meet its
major creditors in Singapore to set up the final
restructuring details of the company's debts. Astra had
announced last October that its business has fallen so much
that it had stopped paying interest on about $1.4 billion
in loans. Astra has a total of $2 billion in foreign debt
obligations plus about 2 trillion rupiah in local currency
debt.

Many creditors, particularly Astra's Japanese creditor
banks (which account for the majority of Astra's bank
debts) have reportedly balked at the idea of writing off
some of their loans prior to completing the restructuring
of the rest of the debt.  

The article also mentioned that last week Astra agreed to
include in the restructuring plan provisions for upfront
payment to foreign creditors in an amount equal to three
month's interest. These payments, in excess of $25 million,
would be disbursed at certain milestone points reached in
the debt negotiations.

Astra was once Indonesia's most profitable and well managed
conglomerates and suffered greatly when the rupiah's 1997
plunge against the dollar made it impossible for it to
service its foreign debt. Astra's automobiles sales, once
one of its main revenue generators, were off 85 percent in
1998, and expected to drop further this year.  


PT BANK AKEN: Central bank staff sent to Bank Aken
--------------------------------------------------
The Asia Wall Street Journal reported that staff from the
central bank have been sent to the PT Bank Aken since late
last week. The article also reported that the central bank
of Indonesia has been dispatching staff to several banks
slated for closure in order to watch over their assets.  

Shareholder of PT Bank Aken are reportedly searching for
investors to inject fresh capital in order to save it from
being liquidated. An executive of the bank was cited as
saying that the Bank of Indonesia sent Friday February 26
as the deadline for this injection of capital.  

The government of Indonesia is scheduled to shut down
scores of yet un-named banks this weekend.


PT BANK SAHID GAJAH PERKASA: Clearing actions stopped
-----------------------------------------------------
The Asia Wall Street Journal reported that the Bank of
Indonesia has suspended the interbank clearing activities
of PT Bank Sahid Gajah Perkasa. This news was in a February
24 central bank circular issued days before the scheduled
government closure of scores of yet un-named Indonesian
banks.


=========
J A P A N  
=========

BANDAI: Results announcement
----------------------------
Shares of Bandai fell 105 yen to 1,245. The toymaker
widened its group net loss forecast for the year ending in
March to 18.5 billion yen from an earlier loss forecast of
4.5 billion yen. That's worse than Toyo Keizai's forecast
of a 5.5 billion yen loss. (Bloomberg 26-Feb-1999)


GENERAL SEKIYU KK: Results announcement
---------------------------------------
Shares of General Sekiyu KK fell 4 yen to 385. The Japanese
oil refining and marketing company reported a group net
loss of 5.69 billion yen for the year ended Dec. 31,
compared with a profit of 620 million yen a year ago.
That's close to Toyo Keizai's forecast of a 5.7 billion
yen. (Bloomberg 26-Feb-1999)


MISAWA RESORT: Results announcement
-----------------------------------
Shares of Misawa Resort Co. fell 23 yen to 222. The
resort/leisure facilities manager cut its group net
forecast for the year ending in March to a loss of 2
billion yen from the break-even forecast. That's also worse
than Toyo Keizai's break-even forecast. (Bloomberg
26-Feb-1999)


MITSUBISHI ELECTRIC: Results announcement
-----------------------------------------
Shares of Mitsubishi Electric Corp. fell 3 yen to 356. The
electronics maker reversed its group net forecast for the
year ending in March to a loss of 40 billion yen from an
earlier profit forecast of 20 billion yen. That's also
worse than Toyo Keizai's forecast of a 20 billion yen loss.
(Bloomberg 26-Feb-1999)


MITSUBISHI MATERIALS: Results announcement
------------------------------------------
Shares of Mitsubishi Materials Corp. fell 12yen to 208. The
maker of non-ferrous metals is likely to report a group net
loss of 30 billion yen for the year through March, compared
with a 10.1 billion yen profit for the year before, the
Nihon Keizai newspaper said, without citing sources. After
the market closed, the company widened its group net loss
forecast for the year to 35 billion yen from an initial
forecast of 20 billion yen. (Bloomberg 26-Feb-1999)


LONG TERM CREDIT: To trim assets to Y15.6 tr. by Sept.
------------------------------------------------------    
Long-Term Credit Bank of Japan said Thursday its assets
will total some 15.59 trillion yen at the end of
September this year following the sale of soured assets.

The announcement followed the conclusion of an audit of the
nationalized bank by the Financial Supervisory Agency.
LTCB, crippled by massive bad debts, was nationalized in
October for an eventual sale back to the private sector.

The FSA put LTCB's assets at 19.38 trillion yen, excluding
problem assets to be sold to Resolution and Collection
Corp., which will be created through the merger of
Resolution and Collection Bank and Housing Loan
Administration Corp.

LTCB will slash the asset amount by 3.8 trillion yen by
September, LTCB officials said. The assets at the end of
September will include 10.35 trillion yen in loans, down
from 11.11 trillion yen as of last Oct. 27, just before the
bank was nationalized, and 1.4 trillion in stock holdings,
down from 1.87 trillion yen.

Bond and other securities holdings will account for 400
billion yen, down from 1.79 trillion yen, and call money
funds and other assets will total 3.4 trillion yen, down
from 4.57 trillion yen. (Jiji Press English News
25-Feb-1999)


OKI ELECTRIC: Results announcement
----------------------------------
Shares of Oki Electric Industry Co. fell 16 yen to 369 on
an inflow of 110.52 million yen. Japan's sixth-largest
computer chipmaker widened its earnings projection for the
year through March to a group pretax loss of 49 billion
yen ($408 million), compared with a 2.4 billion yen profit
the year before, amid poor sales of its computer systems
for banks, weak demand for logic chips and the strong yen.
It previously forecast a pretax loss of 33 billion yen.
(Bloomberg 26-Feb-1999)


RENOWN LOOK: Results announcement
---------------------------------
Shares of Renown Look Inc. fell 1 yen to 91. The Japanese
maker of ready-made ladies' clothing reported that parent
net loss widened for the year ended Dec. 31 to 5.24 billion
yen from 4.84 billion yen a year ago. That's almost the
same as Toyo Keizai's forecast. (Bloomberg 26-Feb-1999)


SAKURA BANK: Unveils revamp, taking 990b yen loan charge
--------------------------------------------------------
Sakura Bank Ltd, a leading Japanese financial institution,
said yesterday it would take larger-than-expected charges
to clean up its problem loans this business year while
boosting efforts to streamline operations.

Sakura said it would incur loan-loss charges of 990 billion
yen (S$14.2 billion) in the year to March 31, up from an
earlier forecast of 910 billion yen.

Sakura is one of 15 major Japanese banks that are seeking
public funds totalling over seven trillion yen under a
government scheme to revitalise the troubled banking
sector.

Sakura said it planned to apply for an injection of 800
billion yen in public funds through the issue of
preferred shares.

The bank also said it would cut its work force by 4,200, to
a total of 13,200, by the end of March 2003. It also plans
to close 160 of its domestic and overseas outlets by the
end of March 2003, reducing the total to 370.

Concurrently, Sakura revised its parent current forecast to
a loss of 730 billion yen from the previous forecast of a
620 billion yen loss. (Reuters and Singapore Business Times
26-Feb-1999)


TOKYO DOME: Results announcement
--------------------------------
Shares of Tokyo Dome Corp. fell 10 yen to 610. The baseball
stadium operator revised its parent net forecast for the
year ending in March to a loss of 6.4 billion yen from
an earlier profit forecast of 1.05 billion yen. That's
worse than Toyo Keizai's forecast of a 1 billion yen
profit. (Bloomberg 26-Feb-1999)


TSUGAMI CORP: Results announcement
----------------------------------
Shares of Tsugami Corp. fell 13 yen to 164. The Japanese
machine tool maker revised its parent net forecast for the
year ending in March to a loss of 1.04 billion yen from an
earlier forecast of a profit of 4.5 billion yen. That's
worse than Toyo Keizai's forecast of a 150 million yen
loss. (Bloomberg 26-Feb-1999)


TOKYU CORP: Results announcement
--------------------------------
Shares of Tokyu Corp. fell 3 yen to 287. The train operator
revised its group forecast for the year ending March to a
net loss of 27 billion yen from a net profit of 2.6 billion
yen. (Bloomberg 26-Feb-1999)


VICTOR COMPANY: Results announcement
------------------------------------
Shares of Victor Company of Japan Ltd. fell 24 yen to 782.
The Yokohama-based consumer electronics company reversed
its group net forecast for the year ending in March to a
loss of 8.5 billion yen  from an earlier forecast of a
profit of 1 billion yen. That's also worse than Toyo
Keizai's forecast of a 1 billion yen profit. (Bloomberg
26-Feb-1999)


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

HANBO IRON & STEEL: Sale delayed at least one more month
--------------------------------------------------------
The Korea Herald reported that the creditors of the
bankrupt Hanbo Iron & Steel Company have decided to give a
foreign company even more extra time to complete their
appraisals of the financial and managerial status of the
steel making facilities to be sold. Officials from the
creditor banks admitted that the evaluations by the
prospective buyers are taking longer than the extra one
month projected in January. The article also cited
analysts as saying that the process could actually drag out
until April or May.

Officials from the creditor banks were planning to complete
the selection of a purchaser by the end of January, but
then foreign companies decided to take part in the bidding.  
A consortium including U.S. investment firms such as Third
Avenue Fund, Carl Marks & Co., and Nabors Capital has sent
a letter of intent to take over the steel maker. However,
this consortium postponed its original schedule to begin a
review this purchase.

Last year, Dongkuk Steel Mill Company was the sole bidder
and offered 1.72 trillion won to take over Hanbo in the
first round of international bidding for the steel maker.  
However, creditors banks reportedly aborted bidding on
Hanbo because Dongkuk's offering price won failed to meet
their expectations. Dongkuk has criticized the creditor
banks saying that the bidding has been manipulated against
them with a view of getting as much money out of the sale
as possible.

Hanbo, once Korea's second largest steel maker, produced 3
million tons of steel products per year, but collapsed on
January 23, 1997 under bank debts estimated at 8 trillion
won. The value of the assets at Hanbo has been evaluated at
3.4 trillion won, although the construction of some
facilities is still not complete.  

Earlier newspaper reports indicated that creditor banks
prefer to sell off Hanbo's two main plants as a package,
but they could be sold off in separate parts contingent on
buyer interest. Hanbo's main facility is its Tanjin
Steelworks which includes a mill producing 1.8 million tons
of crude steel a year for hot coils and steel rods, as well
as a cold-rolled steel plate plant that suspended
operations this last July. The other part of the company
comprises uncompleted facilities (whose construction was
stopped last year) that were slated to become a 2.1 million
ton hot coil mill and a 2 million ton cold-rolled sheet
plate plant.


HAITAI ELECTRONICS: To reduce capital by 90 pct
-----------------------------------------------
South Korea's Haitai Electronics has resolved to cut
capital by 90 percent, an action meant to facilitate the
company's bid to implement debt-to-equity swaps with
creditors. The capital reduction will bring the number of
Haitai shares and the troubled company's capital to 1.33  
million shares from 13.31 million and 6.67 billion won
(US$5.4 million) from 66.7 billion won (US$54.4 million),
respectively. (Asia Pulse 26-Feb-1999)


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

MBF FINANCE: MBf seeks $6b recapitalisation
-------------------------------------------
According to the South China Morning Post, MBf Finance,
which was taken over by the central Bank Negara last month,
needs a recapitalisation of nearly M$3 billion, government
officials and industry sources said yesterday. Shareholders
are said to be negotiating the amount required and the
final figure would be announced in a few weeks. The
government official said the figure is close to M$3 billion
and shareholders are divided over the amount with some
saying it is about M$2 billion.


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

PHILIPPINE GLOBAL: Smart Communications to cut tie
--------------------------------------------------
The Asian Wall Street Journal reported that Smart
Communications Inc., the mobile-telephone unit of Metro
Pacific Corporation, is planning to terminate its
interconnection with Philippine Global Communications Inc.
(Philcomm) because of unpaid bills.

Philcomm's unpaid bills with Smart reportedly amount to
128.8 million pesos as of February 16. Smart earns seven
pesos for every call made to one of its subscribers from a
Philcomm phone.


PHILIPPINE TELEPHONE: Smart Communications to cut PT&T tie
----------------------------------------------------------
The Asian Wall Street Journal reported that Smart
Communications Inc., the mobile-telephone unit of Metro
Pacific Corporation, is planning to terminate its
interconnection with Philippine Telephone & Telegraph
(PT&T) because of unpaid bills.

PT&T's unpaid bills with Smart reportedly amount to 102.2
million pesos as of February 16. Smart earns seven pesos
for every call made to one of its subscribers from a PT&T
phone. Smart has already barred PT&T subscribers from
accessing its network, but still allows its subscribers to
call PT&T.  


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

HIAP MOH CORP: Hiap Moh hit by Aussie project
---------------------------------------------
Paper merchant Hiap Moh Corp plunged into the red last year
with net losses of $3.3 million, compared with a $1.2
million net profit in 1997. This was mainly due to an
Australian property project which incurred losses of almost
$3 million. Turnover fell 4.3 per cent to $41.6 million. It
declared a final dividend of 2 per cent. (Singapore
Business Times 26-Feb-1999)


PRESSCRETE: Earnings dive 76%
-----------------------------
Presscrete Holdings' full-year net profit fell 76 per cent
to $302,000 even though sales rose 13 per cent to $21.6
million. This was mainly due to provisions of doubtful
debts for its Malaysian subsidiary. For the year ended
November, the company declared a first and final dividend
of 2 per cent. (Singapore Business Times 26-Feb-1999)


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

NATIONAL FERTILISER: In debt-for-equity deal
--------------------------------------------
Creditor banks of National Fertiliser Plc have agreed in
principal to restructure a Bt7 billion debt and convert
some portion into equity, said its newly-appointed
executive chairman Kamolchai Patrodom.

Krung Thai Bank, Industrial Finance Corp of Thailand, Siam
Commercial Bank and Siam City Bank have seen as important
for the company to have an extended debt-repayment period
as well as reducing the debt amount by a debt-to-equity
swop, in a bid to make it possible for the fertiliser firm
to service its debts.

"Now we're discussing details with the banks on the
appropriate terms. The conclusion is expected soon," said
Kamolchai.

Since its production start-up early last year, the company
has not paid any interest on loans from banks and as a
result the company will be subjected to a penalty interest
charge of 20 per cent, raising its cost, he said.

And to reduce its cost, the company is negotiating with the
Ministry of Finance for a soft loan to refinance its
working capital debt worth a total Bt900 million to Bt1
billion subject to an interest charge of 18 per cent. The
Ministry of Finance has a 7.69 per cent direct equity
participation in the company.

Apart from PTT and the Finance Ministry, the company is
owned 15.17 per cent by the Government Savings Bank, 14.23
per cent by IFCT, 7.59 per cent by the Crown Property
Bureau, 4.74 per cent by the National Petrochemical Plc,
3.79 per cent by SCIB, 2.9 per cent by SCB, 2.65 per cent
by Padaeng Industry Plc and 0.58 per cent by KTB.
(The Nation 26-Feb-1999)


THAI PETROCHEMICAL: Lenders back debt revamp plan
-------------------------------------------------
The International Finance Corp. has agreed to a debt
restructuring plan for Thai Petrochemical Industry Group.

The IFC, together with Commonwealth Bank of Australia, had
initially resisted a debt restructuring plan set in place
in late October. But in a statement last weekend, the IFC
said it had agreed to a plan covering about $3.2 billion of
TPI's $4.2 billion in outstanding debt.

Sources said Chatumongol Sonakul, governor of Thailand's
central bank, was instrumental in bringing about the change
of mind at the IFC, the investment wing of the World Bank.

Commonwealth and the IFC are among the 14-member creditor
steering committee overseeing the TPI restructuring.

TPI's 148 Thai and foreign creditors had to agree to the
plan.

The IFC, which holds 15 percent of TPI's debt, had in the
past demanded additional safeguards in the debt-
restructuring plan, which included management changes and
an accelerated default process.

The U.S. Ex-Im Bank supported the latest version of the
plan.

TPI is one of the giants of Thailand's corporate life, with
investments in everything from petrochemicals to seaports.
TPI reported one of the largest losses in Thai corporate
history: 69 billion baht ($1.9 billion) for 1997.

By September 1998, it had recovered and reported a 20.04
billion baht profit for the nine months. (Journal of
Commerce 25-Feb-1999)


UNITED COMMUNICATION: Reaches debt agreement
--------------------------------------------
United Communication Industry (UCOM) said it already
reached an agreement with its creditors in restructuring
its $570 million of debt through offering 46 percent
equity in the company in exchange for a reduction of about
a fifth of the total debt.

The contract signing is expected to be held next Thursday,
said UCOM Vice President Vichai Bencharongkul.

Under the agreement, about $120 million of the debt will be
converted into 46 percent of creditors' equity -- or about
200 million new shares. Consequently, the Bencharongkul
family will have to dilute their shareholding down from the
existing 40 percent to 25 percent.

"Though our shares in UCOM will be vastly diluted, the
current management structure will be kept," Vichai said.

For the remaining debt, UCOM has agreed with the creditors
to extend the repayment period of the debt from the due
date within this year to 2003.Vichai said the first
repayment of $5 million would be made in December this
year.

Vichai said the successful restructuring deal makes it
unnecessary for UCOM to sell its ownership in its 70
percent-owned subsidiary, Total Access Communication (TAC).

Creditors asked UCOM to maintain its interest in TAC at at
least 26 percent. Most of UCOM's revenue comes from TAC.

After the debt conversion, UK-based Somers will double its
shareholding in UCOM from the present 13 percent.Its
subsidiary TAC, which is the operator of the 800- and 1800-
frequency cellular phone system, completed its $537 million
debt restructuring last September. (Business Day [Thailand]
26-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

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