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             A S I A   P A C I F I C      

      Friday, March 5, 1999, Vol. 2, No. 45

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS: Deloitte audits questioned
GUANGDONG ENTERPRISES: HKSA to probe Guangnan audit
INTERFORM CERAMICS: Deloitte audits questioned
INTERFORM CERAMICS: Interform rescue deal halved
QPL INTERNATIONAL: Deloitte audits questioned


* I N D O N E S I A *

BANK NUSA: BNN has NPL rate of 99 percent
BORPILING LESTARI: SPP's Indon unit declared bankrupt


* J A P A N *

FUJI BANK: Revises earnings projections
FUKUTOKU BANK: Accused of helping 'jusen' borrower
SANYO ELECTRIC: Sees 15b yen loss as sales fall


* K O R E A *

DAEYANG COMPANY: Starts creditor reconciliation
DONGAH LIFE: Six weak companies 'not insolvent'
DOOWON LIFE: Six weak companies 'not insolvent'
HANDUK LIFE: Six weak companies 'not insolvent'
JOSUN LIFE: Six weak companies 'not insolvent'

KOOKMIN LIFE: Six weak companies 'not insolvent'
PACIFIC LIFE: Six weak companies 'not insolvent'
SSANGYONG ENGINEERING: To turn 628b won debts into equity


* M A L A Y S I A *

BERJAYA LAND: Plans RM900m debt-equity conversion
BUMIPUTRA COMMERCE: KL to buy Bumi Commerce debts by March
C&C BINTANG: To buy back 10% of shares
HONG LEONG: HLI slashes half-year pre-tax loss to RM21.1mil
MALAYSIAN PACIFIC: MPI posts interim loss of RM17.8mil

MBF FINANCE: Deadline for MBf Finance shareholders
TELEKOM MALAYSIA: Net profit down 46 per cent


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

ORIENT BANK: PDIC uncovers more loans to Go
PHILIPPINE AIRLINES: SEC approves PAL deals with lessors
PHILIPPINE AIRLINES: SEC won't extend PAL deadline
RJ VENTURES: Bank forecloses on RJ Ventures


* S I N G A P O R E *

MODE CIRCLE: Court appoints liquidator
SCOTTS HOLDINGS: Unveils $4.7m interim loss
SIME SINGAPORE: Interim down 45% to $7m


* T H A I L A N D *

ADVANCE AGRO: Moody's downgrades Advance Agro
BEC WORLD: Channel 3 suffers substantial net profit decline
FUEL PIPELINE: FPT debt restructured by creditors
NAKORNTHAI STRIP: Registers bigger losses in '98
NTS STEEL: Makes 'satisfactory' progress in debt talks

SANSIRI PROPERTY: US firm eyes stake in ailing developer
THAI PETROCHEMICAL: Most creditors agree to plan


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

ALBATRONICS: Deloitte audits questioned
---------------------------------------
According to the South China Morning Post, concerns have
been raised over accounts audited by Deloitte Touche
Tohmatsu on a number of companies other than GDE.

Creditor banks of Albatronics (Far East), now seeking a
debt restructuring, have raised concerns over the conduct
of the company management and its auditor.

Albatronics racked up an attributable loss of $529.31
million for the nine months to December 31 compared with a
profit of $22.4 million in the 12 months to March 31 last
year. It was dragged down by a massive $446.53 million in
provisions.

Banks have questioned why the company's financial position
has deteriorated so dramatically over a year's time.

In each case, Deloitte had said in the previous year's
annual report that the financial statements gave a true and
fair view of the firm's state of affairs.


GUANGDONG ENTERPRISES: HKSA to probe Guangnan audit
---------------------------------------------------
According to the South China Morning Post, the Hong Kong
Society of Accountants (HGKSA) yesterday said it would
investigate the acconting treatment of Guangnan (Holdings).

The decision came after accountant KPMG highlighted alleged
shortcomings in the accounts of Guangnan, which was
previously audited by Deloitte Touche Tohmatsu. Deloitte
declined to answer queries over its audit work saying the
nature of their appointment as auditors prevented them from
commenting on the clients' business affairs.

KPMG was engaged by the Guangdong provincial government to
audit the books of Guangnan and parent Guangdong
Enterprises (Holdings) (GDE) for the nine months to Sept
30.

Guangnan posted a loss of $3.29 billion in the period with
a negative net worth of $1.28 billion as of Sept 30.

GDE, which also had Deloitte as its auditor in 1997,
reported a loss of $18.78 billion in the and negative net
worth of $13.17 billion.

Guangdong executive vice-governor Wang Qishan has said the
financial position of the GDE group is far worse than
expected.

Guangdong Investment (GDI), 40.5 per cent held by troubled
Guangdong Enterprises (Holdings), will meet creditor banks
today to propose a standstill agreement that will allow it
to suspend repaying the principal on its loans.

The company said it intends to continue paying interest. It
has received loan calls from several banks since disclosing
a loss of about HK$2.18 billion for the nine months to
Sept, triggering technical defaults on some loans. It is
understood to have repaid about US$9 million on a US$20
million loan.

GDI Officials plan to give at the meeting representatives
of about 60 creditor banks details of its debt profile and
preliminary asset restructuring plan at the meeting today.

A source close to GDI said the proposed repayment schedule
would become clearer by next month when the restructuring
advisers for GDE put forward an asset restructuring plan
which is expected to include selling to GDE non-performing
assets such as its interests in Guangdong Brewery,
Guangdong Tannery, Guangdong Building Industries and
finance and manufacturing businesses. In return, GDI would
receive cash-generating assets such as the Dongjiang River
water supply and other infrastructure businesses.


INTERFORM CERAMICS: Deloitte audits questioned
----------------------------------------------
According to the South China Morning Post, concerns have
been raised over accounts audited by Deloitte Touche
Tohmatsu on a number of companies other than GDE.

Tile-maker Interform Ceramics suffered an attributable loss
of $421.5 million in the Sept half compared with a previous
profit of $41.5 million. It was hit by exceptional losses
of $311.3 million, mainly provisions for bad and doubtful
debts.

In each case, Deloitte had said in the previous year's
annual report that the financial statements gave a true and
fair view of the firm's state of affairs.


INTERFORM CERAMICS: Interform rescue deal halved
------------------------------------------------
According to the South China Morning Post, terms of a
rescue proposal for tile-maker Interform Ceramics
Technologies have been revised. One of the major changes
involved halving the amount of a convertible note to $320
million from $640 million. The note will be issued to the
rescuer, the mainland-based ceramics-maker China Wealth
Group. The date for completion of the proposal was extended
to the end of next month from the end of this month.


QPL INTERNATIONAL: Deloitte audits questioned
---------------------------------------------
According to the South China Morning Post, concerns have
been raised over accounts audited by Deloitte Touche
Tohmatsu on a number of companies other than GDE.

Semiconductor-maker QPL collapsed to a $1.96 billion
attributable loss in the six months to Oct under the weight
of $1.9 billion in provisions, mostly for its overseas
investment.

In each case, Deloitte had said in the previous year's
annual report that the financial statements gave a true and
fair view of the firm's state of affairs.


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

BANK NUSA: BNN has NPL rate of 99 percent
-----------------------------------------
The Asian Wall Street Journal reported that an audit by the
Indonesian Bank Restructuring Agency found that the Bakrie
Group's banking branch, Bank Nusa Nasional (BNN) had
nonperforming loans of 99 percent. Most of these loans were
made to Bakrie affiliates.  

Earlier reports stated that Bakrie has sold assets to
inject capital into the bank to meet government capital
requirements. The bank's owner has reportedly put 200
billion rupiah into the bank, and have pledged another
570 billion rupiah.

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

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


BORPILING LESTARI: SPP's Indon unit declared bankrupt
-----------------------------------------------------
An Indonesian subsidiary of SPP Ltd, PT Borpiling Lestari       
(PTBL), has gone bust.

The company was declared bankrupt by an Indonesian court
last week after creditors rejected a repayment plan.

SPP said yesterday that the closure of the construction and
foundations specialist was not expected to affect its
financial results as "full provisions have been made
against the investment and amount due to the group".

SPP owns 80 per cent of PTBL through wholly-owned
subsidiary Bored Piling. The company, in turn, is 60 per
cent owned by mainboard-listed Tuan Sing.

PTBL's troubles started late last year when PT Jaya
Readymix applied to the Indonesian Commercial Court on Dec
11 to wind up the company. It requested and secured from
the courts a 45-day temporary suspension of payment. And at
a hearing on Jan 27, the courts granted PTBL a permanent
suspension for a month.

Subsequently, a creditors committee comprising five
creditors was formed to "discuss and negotiate a final
composition plan with PTBL" and a meeting was held for all
creditors to vote on this plan.

"At the creditors meeting held on Feb 25, 1999, eight
creditors representing 56 per cent of the total amount
present voted to accept PTBL's offer of composition whereas
25 creditors representing 44 per cent of the total amount
present voted to reject the Composition Plan," SPP said.

A day after that meeting, a Jakarta court ordered that PTBL
be made a bankrupt and appointed a receiver for this
purpose. Written judgement was received by PTBL yesterday.
(Singapore Business Times 04-Mar-1999)


=========
J A P A N  
=========

FUJI BANK: Revises earnings projections
---------------------------------------
Fuji Bank on Thursday announced downward revisions of its
earnings projections for fiscal 1998, through March 1999,
as a result of increased write-offs of bad-debt assets.

Unconsolidated pretax loss is now projected at 710 billion
yen, 160 billion yen more than the previous estimate in
November, while net loss is forecast at 380 billion yen, 70
billion yen more than the last forecast.
(Kyodo News 04-Mar-1999)


FUKUTOKU BANK: Accused of helping 'jusen' borrower
--------------------------------------------------
The now defunct Fukutoku Bank assisted a real estate
company, a borrower from bankrupt "jusen" housing loan
companies, in illegally hiding assets by providing the firm
more than 10 billion yen in questionable loans, police
sources said Thursday.

The Osaka-based Fukutoku Bank merged with Naniwa Bank, also
based in Osaka, into Namihaya Bank last October, becoming
the first "special merger" case to receive 300 billion yen
in public funds under a government bailout plan to
facilitate amalgamation of financially troubled banks.
(Kyodo News 03-Mar-1999)


SANYO ELECTRIC: Sees 15b yen loss as sales fall
-----------------------------------------------
Japan's Sanyo Electric Co Ltd said yesterday it would slip     
into the red in the year to March 31 due to weak sales and     
losses stemming from the liquidation of overseas sales
units.

It forecast a group pre-tax loss of 15 billion yen
(S$216 million) in the year, reversing an earlier forecast
of a 24 billion yen profit.

Sanyo estimated consolidated sales at 1,810 billion
yen, down from an early projection of 1,850 billion yen
"because domestic sales fell sharper than expected", the
firm said in a statement.

Sanyo also forecast a group net loss of 26 billion yen, in
a turnaround from the earlier projected eight billion yen
in profit, due to the reclassification of corporate taxes.

The firm also incurred losses stemming from closures of
"sales affiliates in Europe and Oceania", a Sanyo official
said.

The company posted a group pre-tax profit of 38.2
billion yen and net profit of 12.3 billion yen on sales of
1,866.4 billion yen in the year ended in March 1998.

On the parent basis, Sanyo slashed its pre-tax profit
forecast from 16 billion yen to 10 billion yen, with sales
estimated at 1,070 billion yen, down from the earlier
forecast 1,100 billion yen.

Its net profit forecast was lowered from eight billion yen
from 3.8 billion yen. (Agence France-Presse and Singapore
Business Times 04-Mar-1999)


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

DAEYANG COMPANY: Starts creditor reconciliation
-----------------------------------------------
The Taechon District Court advertised in the Korean
language Maeil Kyungje that the Daeyang Company starts its
creditor reconciliation procedure. The creditors have until
March 27th, 1999 to file their claims. The company's
address is 117-6 Dochon-ri, Woosung-myon, Kongju-shi and
the president is Ms. Chung Ok-jin.


DONGAH LIFE: Six weak companies 'not insolvent'
-----------------------------------------------
The Korea Times reported that the Financial Supervisor
Commission (FSC) has decided not to officially declare six
life insurance companies 'insolvent' that have been
proclaimed nonviable in local newspaper reports so to make
these firms look more attractive to foreign investors.
The article stated that the firms will maintain their
operational status for the next several months as the FSC
tries to sell them off. This is interpreted to mean that
they will be allowed to continue day-to-day market
transactional activities until they are sold to potential
foreign investors.


DOOWON LIFE: Six weak companies 'not insolvent'
-----------------------------------------------
The Korea Times reported that the Financial Supervisor
Commission (FSC) has decided not to officially declare six
life insurance companies 'insolvent' that have been
proclaimed nonviable in local newspaper reports so to make
these firms look more attractive to foreign investors.
The article stated that the firms will maintain their
operational status for the next several months as the FSC
tries to sell them off. This is interpreted to mean that
they will be allowed to continue day-to-day market
transactional activities until they are sold to potential
foreign investors.


HANDUK LIFE: Six weak companies 'not insolvent'
-----------------------------------------------
The Korea Times reported that the Financial Supervisor
Commission (FSC) has decided not to officially declare six
life insurance companies 'insolvent' that have been
proclaimed nonviable in local newspaper reports so to make
these firms look more attractive to foreign investors.
The article stated that the firms will maintain their
operational status for the next several months as the FSC
tries to sell them off. This is interpreted to mean that
they will be allowed to continue day-to-day market
transactional activities until they are sold to potential
foreign investors.


JOSUN LIFE: Six weak companies 'not insolvent'
----------------------------------------------
The Korea Times reported that the Financial Supervisor
Commission (FSC) has decided not to officially declare six
life insurance companies 'insolvent' that have been
proclaimed nonviable in local newspaper reports so to make
these firms look more attractive to foreign investors.
The article stated that the firms will maintain their
operational status for the next several months as the FSC
tries to sell them off. This is interpreted to mean that
they will be allowed to continue day-to-day market
transactional activities until they are sold to potential
foreign investors.


KOOKMIN LIFE: Six weak companies 'not insolvent'
------------------------------------------------
The Korea Times reported that the Financial Supervisor
Commission (FSC) has decided not to officially declare six
life insurance companies 'insolvent' that have been
proclaimed nonviable in local newspaper reports so to make
these firms look more attractive to foreign investors.
The article stated that the firms will maintain their
operational status for the next several months as the FSC
tries to sell them off. This is interpreted to mean that
they will be allowed to continue day-to-day market
transactional activities until they are sold to potential
foreign investors.


PACIFIC LIFE: Six weak companies 'not insolvent'
------------------------------------------------
The Korea Times reported that the Financial Supervisor
Commission (FSC) has decided not to officially declare six
life insurance companies 'insolvent' that have been
proclaimed nonviable in local newspaper reports so to make
these firms look more attractive to foreign investors.
The article stated that the firms will maintain their
operational status for the next several months as the FSC
tries to sell them off. This is interpreted to mean that
they will be allowed to continue day-to-day market
transactional activities until they are sold to potential
foreign investors.


SSANGYONG ENGINEERING: To turn 628b won debts into equity
---------------------------------------------------------
Creditors of South Korea's ailing Ssangyong Engineering and       
Construction Co have agreed to turn 500 billion won       
(S$705 million) of the company's debts into equity, a Cho
Hung Bank official said yesterday.

The official said major shareholder Ssangyong Cement
Industrial Co would buy back another 128 billion won worth
of unlisted Ssangyong Engineering debts from creditors and
that debt also would be turned into equity.

"The creditor banks wanted to involve the major shareholder
in the construction firm's debt rescheduling process," said
the official of Cho Hung, the major creditor.

No specific date for the swap has been set as it must be
preceded by a capital reduction, a bank official said.

Creditors agreed last week to a 55.2 billion won debt-to-
equity swap of Nam Kwang Engineering and Construction Co, a
sister company of Ssangyong Engineering.

Ssangyong Engineering, Nam Kwang's major shareholder, also
would be required to buy another 44.8 billion won of Nam
Kwang debts from creditors to be turned into equity.

Ssangyong Engineering's debts at end-December at financial
institutions were estimated at 1.4 trillion won while Nam
Kwang's debts were estimated at 240 billion won, the Cho
Hung official said. (Reuters and Singapore Business Times
04-Mar-1999)


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

BERJAYA LAND: Plans RM900m debt-equity conversion
-------------------------------------------------
Berjaya Land, the gaming and property arm of Vincent        
Tan Chee Yioun's flagship Berjaya Group, has proposed to        
convert up to 900 million Malaysian ringgit (S$410.8  
million) of debt into shares and loan stocks in a move to
improve its balance sheet.

The company said RM100 million of the debt would be swapped  
for new shares while the remaining RM800 million would be  
converted into irredeemable convertible unsecured loan
stocks (ICULS).

As at Oct 31, 1998, its total borrowings amounted to RM1.72  
billion, of which RM505.29 million was short-term debts.

"Currently, several financial institutions (lenders) have
indicated their agreement in-principle to convert their
debts of at least RM703 million into securities," the
company said.

It added that the scheme was a voluntary gesture and that
none of the lenders would need to take a "hair cut" which
is typical of restructuring schemes of this nature.

"Group borrowings will see a reduction from RM1.72 billion
to about RM820 million with a corresponding positive impact
on gearing, down to 0.19 times from 0.58 times presently,"
Berjaya Land said, adding that the move would also improve
its shareholders' funds by RM1 billion from its current RM3
billion.

The proposal comes with a put option extended by Berjaya
Land, allowing its lenders to sell the ICULS back to the
company. The option may be exercised 24 months after
completion of the scheme. The lenders, in turn, will give
the company a call option, to buy the ICULS, which can be
exercised within five years of their issue.
(Singapore Business Times 04-Mar-1999)


BUMIPUTRA COMMERCE: KL to buy Bumi Commerce debts by March
----------------------------------------------------------
Malaysia will likely complete by the end of March its          
purchase of 7 billion Malaysian ringgit (S$3.2 billion) in          
bad debts from Bumiputra Commerce Bank Bhd.

"The acquisition is subject to the completion of the
merger" between Commerce Asset-Holding Bhd and Bank
Bumiputra Bhd, said Azman Yahya, managing director of
Pengurusan Danaharta Nasional Bhd, the body created by the
Malaysian government to buy banks' bad debts.

The bad debts will be the single biggest amount bought by  
Danaharta, whose purchases are critical to the rebound in
the country's shattered banking industry.

Malaysia's bank bad debts -- accounted for as non-
performing if interest and principal due haven't been paid
for three months -- rose to RM53.2 billion in December,
from RM19.6 billion a year ago, according to the central
bank.

On Feb 8, Commerce Asset-Holding Bhd agreed to buy  state-
owned Bank Bumiputra Bhd for as much as RM1.58 billion.  
The merged bank will be the second biggest in Malaysia
after Malayan Banking Bhd.

Danaharta had bought RM16 billion of bad debts as at the
end of January, Mr Azman said. Next week, in its annual
report, Danaharta will unveil how much it paid for the bad
debts, he said. (Bloomberg and Singapore Business Times
04-Mar-1999)


C&C BINTANG: To buy back 10% of shares
--------------------------------------
Cycle & Carriage Bintang, a 49 per cent associate of        
Singapore-listed Cycle & Carriage, has proposed to buy        
back up to 10 per cent of its paid-up capital, or up to 9.7  
million shares, in an attempt to stabilise its share price.

In a statement to the Kuala Lumpur Stock Exchange, C&C  
Bintang yesterday said the move may be able to stabilise
the supply and demand of its shares in the open market and
thus support its fundamental values.

It added that the share buy-back proposal would benefit C&C  
Bintang and its shareholders because the proposal was
expected to raise the investing public's confidence in the
stability of its share price.

If all the shares bought are cancelled, C&C Bintang's share
capital will fall to 87.37 million shares from 97.07
million shares.

Recently, the company announced a net loss of 1.9 million  
Malaysian ringgit (S$867,160) for the year ended Dec 31,
1998, due to a slump in demand for Mercedes-Benz cars in
Malaysia following the recession. Loss per share came to
two sen, against earnings per share of 147 sen in the
previous year. (Singapore Business Times 04-Mar-1999)


HONG LEONG: HLI slashes half-year pre-tax loss to RM21.1mil
-----------------------------------------------------------
Hong Leong Industries Bhd (HLI) has managed to reduce its
pre-tax loss to RM21.116mil for the half-year ended Dec 31,
1998 from a loss of RM179.417mil in the previous
corresponding period.

Group turnover fell to RM939.369mil from RM1.295bil
previously.

For the six months under review, the group incurred an
operating pre-tax loss of RM6.956mil compared with an
operating pre-tax profit of RM104.595mil in the previous
corresponding period.

At company level, HLI's pre-tax loss shrank to RM3.703mil
from RM23.048mil while turnover dropped to RM34.288mil from
RM66.482mil.

HLI said the 27% decline in group turnover was due to the
non-consolidation of the wire-mesh business which had
ceased to be a subsidiary and also to a contraction in
domestic business activities.

On the group's operating loss, HLI said various divisions
within the group had generally experienced deterioration in
their operating results.

Its semiconductor division suffered a decline in
profitability due to the utilisation of its forward US
dollar currency contracts, which were entered into before
the drop in the ringgit's value.

The group also registered an exceptional loss of RM62.7mil
upon the cancellation of unused forward currencies
contracts of US$48.2mil.

However, the group recorded a favourable exceptional gain
of RM47mil due to the translation gain on devaluation of
foreign currency borrowings resulting from the
strengthening of the ringgit against the US dollar in
the six-month period.

HLI expects a satisfactory performance in the second half
of its financial year. (Bernama and Star Online
03-Mar-1999)


MALAYSIAN PACIFIC: MPI posts interim loss of RM17.8mil
------------------------------------------------------
An increase in exceptional loss of RM77.862mil from
RM16.019mil previously has resulted in Malaysian Pacific
Industries Bhd (MPI) group pre-tax loss of RM17.844mil for
the half year ended Dec 31, 1998.

This compared to a group pre-tax profit of RM86.058mil in
the previous corresponding period.

The group turnover for the six-month period improved by
less than RM1mil to RM461.855mil from RM461.148mil in the
previous corresponding period.

The bulk of exceptional loss was RM62.678mil in
cancellation of unutilised forward currency contracts,
which included RM6.590mil in realised exchange loss and
RM3.594mil unrealised translation loss.

All previous corresponding period exceptional item loss
amounting to RM16.961mil was due to unrealised translation
loss.

At the operating level, MPI saw pre-tax profit dropped 47%
to RM55.018miL from RM103.019mil. At the company level, MPI
performed well to record a pre-tax profit of 570% to
RM94.141mil from RM14.043mil while turnover jumped 265% to
RM112.206mil from RM30.737mil.

Operating profit was up by 343% to RM101.62mil from
RM22.93mil while exceptional items dropped to RM7.479mil
from RM8.887mil. (Bernama and Star Online 03-Mar-1999)


MBF FINANCE: Deadline for MBf Finance shareholders
--------------------------------------------------
MBf Finance Bhd's shareholders have been given until the
end of the month to source fresh capital for injection  
into the financial institution, Malaysia's Berita Harian
reported.

Failure to do so will result in Danamodal Nasional Bhd
taking over MBf Finance's entire assets of 20 billion
Malaysian ringgit (S$9.1 billion), Danamodal managing
director Mohamad Daud Dol Moin was quoted as saying. "If
they are able to raise the funds, then we need not
intervene. Danamodal will only inject capital when it is  
satisfied that its (MBf Finance) shareholders cannot do
so." He said that even after a capital injection by
Danamodal, MBf Finance shareholders may still be given the
opportunity to buy back its shares at a fair price.

However, Mr Mohamad Daud declined to reveal the amount
required to recapitalise MBf Finance. (AFX-Asia and
Singapore Business Times 04-Mar-1999)


TELEKOM MALAYSIA: Net profit down 46 per cent
---------------------------------------------
Malaysia's largest phone company, Telekom Malaysia Bhd,
suffered a 45.9 per cent slump in group earnings to a
lower-than-expected net profit of 991.1 million for the
1998 calendar year following higher depreciation and
interest charges.

This gives the phone company an earnings per share of 33
sen for the year ended Dec 31, 1998 compared to a 61 sen
made in the previous year.

Analysts said the earnings were lower than market
expectations, with profit forecasts ranging between of
RM1.1 billion and RM1.2 billion for the 1998 financial
year. According to the Estimate Directory, the profit
consensus was RM1.39 billion or an EPS of 47.1 sen.
(Singapore Business Times 04-Mar-1999)


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

ORIENT BANK: PDIC uncovers more loans to Go
-------------------------------------------
Chances of Orient Commercial Banking Corp. being
rehabilitated have further dimmed after the Philippine
Deposit Insurance Corp. (PDIC) discovered that certain
loans which the bank extended to borrowers actually went to
the bank's owners.

PDIC president Ernest Leung said that its examiners found
that Orient Bank owner Jose Go used other individuals to
obtain loans from the bank.

"There were certain entities whom, when we asked them to
pay, said that they were not borrowers. Apparently, their
names were used, " Leung said.

He said that with the discovery, Go's loans from the bank
known as DOSRI (directors, officers, stockholders and
related interest) have ballooned to P8 billion as of end-
December from P5.8 billion when it was closed in October.

According to Leung, this has further dimmed prospects of
rehabilitating the bank even if Equitable Banking Corp. is
still interested to acquire it.

"So these things should be added on to his (Go)
responsibility. If you include that adjustment plus the
interest that should be running it has probably reached P8
billion by December," he said.

The PDIC, he said, is still willing to rehabilitate the
bank, but the problem is how to get Go to pay his loans
when he refused to meet with them.

At this point, he said the only "logical consequence" is to
liquidate the bank, then collect the loans, and get the
creditors such as the PDIC, Bangko Sentral, and the
uninsured depositors to agree to the sale of the bank's
remaining assets to interested buyers.

Leung said PDIC is still talking with Orient Bank
depositors, particularly those that were not covered by the
P100,000 insurance, for a possible conversion of their
deposits into equity in the bank.

The bank's total liabilities stood at P6.1 billion of which
P1 billion represent uninsured deposits; P1.8 billion
emergency loans from the Bangko Sentral, and P3.3 billion
to other creditors. (Manila Times 02-Mar-1999)


PHILIPPINE AIRLINES: SEC approves PAL deals with lessors
--------------------------------------------------------
The Securities and Exchange Commission has approved the
separate agreements Philippine Airlines entered into with
three foreign leasing firms to resume payments on the lease
of four aircraft.

In an order issued yesterday, the SEC gave the go-signal
for PAL to take on the compromise deal forged with
Airplanes Finance Ltd., General Electric Capital Corp., and
GPA Group Plc.

The three leasing companies in all leased four Boeing 737
aircraft to PAL starting June 30, 1989. They sent notices
of termination of lease after PAL defaulted on $8.93
million in contractual obligations and announced its
closure in September last year.

However, following negotiations with PAL last month, the
three leasing firms agreed to continue with the lease under
their respective lease agreements with PAL to help the
airline stay afloat.

Under the compromise agreement, PAL will pay the lessors
$220,000 for each aircraft that will cover monthly rent,
and monthly maintenance reserves based on the actual
aircraft utilization.

The amounts payable shall continue until the date of the
formal implementation of PAL's financial rehabilitation
plan which shall not be later than September 1, 1999.

All payments shall be immediately due and payable if PAL
defaults in the payment of any of the said amounts; the
rehabilitation plan diminishes or adversely affect the
lessor's rights under the lease agreements; and if any
creditor initiates proceedings or takes action before the
SEC.

Upon the issuance of a notice of lease termination, the
lessor shall be entitled to recover the aircraft and the
payment of all amounts due. PAL shall immediately cause the
redelivery of the aircraft to the lessor at Shannon
International Airport in Ireland.

Airplanes Finance Ltd. and GPA have each leased one
aircraft to PAL while General Electric Capital had leased
two.

The three joined 16 other leasing companies that earlier
demanded the return of 24 aircraft leased to PAL.

The 16 leasing firms, most based in Cayman Islands, have
petitioned the SEC to recover 15 aircraft and nine Fokker
planes from PAL. (Manila Times 02-Mar-1999)


PHILIPPINE AIRLINES: SEC won't extend PAL deadline
--------------------------------------------------
The Securities and Exchange Commission (SEC) will no longer
extend the March 15 deadline given to debt-strapped
Philippine Airlines to submit a new rehabilitation plan.

SEC chair Perfecto Yasay Jr. yesterday said PAL should
submit its revised rehab plan by March 15.

Yasay said the hearing panel is no longer keen on extending
the deadline, adding that PAL has been given enough time to
prepare its new recovery plan.

He said that as soon as the SEC receives the revised rehab
plan, the hearing panel will immediately conduct marathon
hearings to decide whether PAL should be rehabilitated or
not.

Majority of PAL's creditors earlier rejected the original
rehab plan which PAL submitted to SEC in December last
year.

Yasay said local creditors of PAL will be given the chance
to comment on the new rehab plan submitted by the airline.

He said the Commission will even accommodate objections
raised by a minority group to put all its creditors in
equal footing.

Foreign secured creditors, headed by the US Export Import
Bank and the European credit agencies, have reacted
favorably to PAL's revised rehab plan which was presented
during a crucial meeting in Washington DC last month.
(Manila Times 05-Mar-1999)


RJ VENTURES: Bank forecloses on RJ Ventures
-------------------------------------------
The Asian Wall Street Journal reported that the Philippine
National Bank (PNB) has started foreclosure proceedings
against RJ Ventures. The bank sold RJ Ventures a 8000
square meter tract of real estate during an auction on
March 2, 1996 for a winning bid of 2.8 billion pesos. The
owner of RJ Ventures, Mr. Ramon Jacinto, used a $112
million loan from the PNB to make this purchase, and
planned a commercial and residential development, but the
Asian financial crises halted this project.


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

MODE CIRCLE: Court appoints liquidator
--------------------------------------
Singapore cosmetic firm Mode Circle, which at its height
had a network of more than 100 branches in Malaysia, its
main market, is folding up.

Singapore's Business Times reported that the High Court
recently ordered Mode Circle to be wound up following a
petition by one of the company's main creditors French
supplier Simone Mahler.  The court also appointed Menon &
Associates as the liquidator.

Mode Circle, once hailed as among the republic's most
enterprising firms, is 80% owned by Shirley Seng and the
balance by her husband, Rodney Seng. They were now
separated, said the report.

Mode Circle started as a cosmetics distributor in 1973
before launching its line of cosmetics and diversifying
into beauty-care services.

Mode Circle owns a six-storey building in Singapore with
total assets of about S$50mil. Group turnover was about
S$20mil in the mid-1990s, said the report.
(Bernama and The Star Online 04-Mar-1999)


SCOTTS HOLDINGS: Unveils $4.7m interim loss
-------------------------------------------
Property player Scotts Holdings yesterday posted after-tax
losses of $4.7 million for the six months ended Dec 31,        
1998.

Group turnover fell 28 per cent to $32.53 million as the
weak property market took a toll on its business arms.

The company posted a loss per share of 1.99 cents, an  
improvement from the 2.13-cent loss per share in the same
period in 1997 when the company reported a net loss of $5
million.

Net tangible assets per share, on the hand, deteriorated,
falling to 130.6 cents from 173.66 cents previously.

Meanwhile, the company has appointed three people to its
board, effective yesterday. They are Han Cheng Fong, Fan
Kow Hin and Jennie Chua Kheng Yeng. At the same time, two
members of Scotts' founding Jumabhoy family, Y R Jumabhoy
and Iqbal Jumabhoy, have bowed out from the board as of
yesterday. (Singapore Business Times 04-Mar-1999)


SIME SINGAPORE: Interim down 45% to $7m
---------------------------------------
Diversified Sime Singapore has reported lower interim gains        
as the regional slowdown eroded profits in all its core        
activities.

For the period ended Dec 31, 1998, the company posted group  
net earnings of $7 million, down 45.3 per cent from the
previous corresponding period. Turnover fell 19 per cent to
$286.4 million.

Earnings per share dropped to 1.3 cents, from 2.3 cents  
previously. But net tangible assets per share rose to 70.3  
cents from 68.8 cents.

An interim dividend of 4 per cent has been declared (5 per  
cent previously), and will be paid on May 26.

A listed subsidiary of Malaysia-based Sime Darby Bhd, Sime
Singapore is involved in six core businesses, mostly
trading-related.

Looking ahead, directors expect full-year earnings to be
lower than the $29.7 million the company posted in 1997.
(Singapore Business Times 04-Mar-1999)


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

ADVANCE AGRO: Moody's downgrades Advance Agro
---------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Service has downgraded the senior unsecured debt
ratings of Advance Agro Company from B3 to Caa1. This move
reportedly reflects the paper firm's worsening liquidity
and weakened operating performance. The article stated that
the company is unlikely to generate sufficient cash to meet
its debt obligations.  

The report further stated that Advance Agro, which has
financed equipment purchases with amortizing loans, will
need to refinance $54 million in loans due this year with
external funding sources.  


BEC WORLD: Channel 3 suffers substantial net profit decline
-----------------------------------------------------------
Television Channel 3 operator, BEC World, recorded a net
profit of 1.38 billion baht in 1998, compared to 1.87
billion baht last year, according to CEO Pravit Maleenond.

This represents a dramatic decline of 560 million baht or
26.29 per cent, which was due mainly to lower advertising
revenue and a sharp decline in domestic interest rate.

Pravit said the decline in domestic interest rate greatly
affected the company's income.

Additionally, BEC has to shoulder 20 percent of losses,
equivalent to 54 million baht, incurred in 1998 by CVD
Entertainment, an affiliate company, Pravit said. CVD
Entertainment's total losses last year amounted to 224
million baht. BEC holds 20 percent stake in the company.

BEC's largest shareholder is the Maleenond family. They
have another 23 years to operate Channel 3. (Business Day
[Thailand] 04-Mar-1999)


FUEL PIPELINE: FPT debt restructured by creditors
-------------------------------------------------
The Asian Wall Street Journal reported that the creditors
of the Fuel Pipeline Transportation Ltd. (FTP) have
restructured the company's 4.08 billion baht debt. The
agreement was signed after the central bank acted a
negotiation mediator between FTP and its creditors.

FTP was set up by the Thai government in 1991 to build and
operate a 69 kilometer fuel pipeline. FTP's obligations
almost doubled from 2.14 billion baht to 4.08 billion baht
following the effective Thai devaluation of the baht on
July 2, 1997.


NAKORNTHAI STRIP: Registers bigger losses in '98
------------------------------------------------
Steel producer Nakornthai Strip Mill yesterday reported
bigger losses in 1998. The company said net loss amounted
to 1,578.60 million baht as at December 31, 1998 compared
to a net loss of 1,294.54 million baht in 1997.

Results as reported by the company are audited and
consolidated, the company said. On a per share basis, the
1998 loss was 2.32 baht compared to a loss of 2.31 baht
during the same period a year earlier. (Business Day
[Thailand] 04-Mar-1999)


NTS STEEL: Makes 'satisfactory' progress in debt talks
------------------------------------------------------
NTS Steel Group Plc is satisfied with progress in talks on
restructuring its debts and hopes key negotiations will be
completed in six weeks, according to executives.

Talks with creditors yesterday focused on ways to resolve
debts totalling 16 billion baht, of which four billion baht
is owed to foreigners.

The company's financial adviser proposed three approaches:
a debt for equity swap worth US$140 million, more time to
repay and lower interest rates on arrears, said group vice-
chairman Chamni Janchai.

Chairman Suwat Horrungrueng said the Bank of Thailand had
been very helpful in the negotiations, but it would take
time to draft the restructuring plan. He hoped a memorandum
could be signed in six weeks.

Although the group had not struck problems with foreign
creditors, it had to negotiate some additional details with
local lenders. The biggest creditor is state-run Krung Thai
Bank, which is owed 1.2 billion baht.

Thirachai Phuvanat-naranubala, central bank assistant
governor, said the group and its creditors would try to
finalise the restructuring plan by June 30.

If all went according to plan, the group would be able to
attract a new partner and revive its operations, he said.

The group's other local creditors include the Industrial
Finance Corporation of Thailand, Asia Credit Plc, Thai Danu
Bank, Krungthai Thanakit Plc, Bangkok Bank Plc, Thai
Farmers Bank Plc, Siam City Bank Plc, Thai Investment and
Securities Plc and Siam Sanwa Industrial Credit Plc.
(The Nation 04-Mar-1999)


SANSIRI PROPERTY: US firm eyes stake in ailing developer
--------------------------------------------------------
Starwood Capital Group of the United States is likely to
buy a stake in Sansiri, an ailing Thai property developer
owned by the Lamsam and Chootrakul family.

Starwood's purchase would be the second major investment in
a Thai developer in a month by foreign investors. A group
comprising units of George Soros's Quantum Fund and London-
based Sloane Robinson Investment Management bought control
of Golden Land Property on February 10.

"This is different from Golden Land in that we will be the
main one involved, rather than coming in with a group of
investors," said Bradford Dockser, head of non-US
investment at Starwood Capital. "Initially, we won't have
majority ownership." Dockser declined to put a price tag on
the investment.

Sansiri said yesterday that it already completed
acquisition terms with Starwood. It asked the Stock
Exchange of Thailand to suspend trading in its share before
calling a board meeting for yesterday afternoon.

Starwood Capital's main investors control Phoenix's based
Starwood Hotels & Resorts Worldwide -- the world's largest
owner of hotels, including the Sheraton and Westin chains
-- and New York-based Starwood Financial Trust, which
invests in mortgage loans.

In November, Sansiri approved the sale of about 262 million
new shares, or 79 percent of the enlarged company. Most of
those shares were allocated for various institutional
investors. Then, the company said its targeted price was 5
baht a share.

Sansiri lost 1.6 billion baht last year, compared with a
186 million baht of loss in the previous year.

Sansiri's main properties are high-rise offices and
condominiums in the central business district of Bangkok.
Its business has been severely affected by the country's
prolonged property slump and the economic contraction that
materialized in the middle of 1997.

Starwood Capital was among a dozen groups that bid in
December for the Financial Sector Restructuring Authority
(FRA)'s business loans, seized by the government from the
56 failed finance houses. Starwood didn't win any bid, but
is likely to participate in the next auction to be held
this month.

Sansiri last year settled part of its debt with creditors
such as Siam Sanwa Industrial Credit and John Hancock
Assurance by swapping it for several land plots and
condominium units. (Business Day [Thailand] 04-Mar-1999)


THAI PETROCHEMICAL: Most creditors agree to plan
------------------------------------------------
The Asian Wall Street Journal Reported that the creditors
representing 90 percent of the debt of Thai Petrochemical
Industry PCL (TPI) have agreed to major parts of the 3.2
billion baht debt restructuring plan. However, a key point
is still not yet resolved regarding how the creditors could
call TPI into default in the future.  

The International Finance Corporation, one of TPI's 148
creditors, had insisted that creditors controlling 15
percent of TPI's debt could demand liquidation of the firm.  
International Finance Corporation loans to TPI accounts for
15 percent of TPI's debt. However, the liquidation  
threshold has now been raised, making it likely that the
entire plan will eventually be approved. Thai law requires
that creditors accounting for 75 percent of the debt
involved approve any restructuring plan. Without the
support of International Finance Corporation and another
bank, the proposal earlier only got 72 percent approval
last year.  

Details of the proposed plan include converting up to $400
million worth of loan interest repayments into a 30 percent
equity stake for creditors.

Furthermore, $110 million in interest are to be paid this
year, with the creditors being allowed to liquidate TPI if
payments are missed.  

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

Troubled Company Reporter -- Asia Pacific is a daily
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Copyright 1999.  All rights reserved.  ISSN: 1520-9482.  

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