TCRAP_Public/990322.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Monday, March 22, 1999, Vol. 2, No. 56

                    Headlines


* C H I N A   &   H O N G   K O N G *

ACHIEVEMENT PLASTICS INTERNATIONAL: Winding-up petition
CITIC PACIFIC: Net down 62% to HK$2.8b
CONCORD GLORY DEVELOPMENT LIMITED: Winding-up order
FOREVERGREEN TAIWANESE RESTAURANT: Winding-up petition
GUANGZHOU INTERNATIONAL: Gzitic's fall traps monks in unholy mess

METRO STATE DEVELOPMENT LIMITED: Winding-up order
METRO WISH INTERNATIONAL LIMITED: Winding-up order
PARK MASTER COMPANY LIMITED: Winding-up order
SHELL ASIATIC ENTERPRISES: Notice to creditors to prove debts
UNIVERSAL LABORATORY LIMITED: Winding-up order

VELOX INVESTMENT LIMITED: Winding-up petition


* I N D O N E S I A *

PT MERPATI: State replaces board members of ailing airline


* J A P A N *

COSMO SECURITIES: To close HK subsidiary
NISSAN MOTOR: Nissan chief admits mishandling debt
SEIYU LTD: In talks with creditors


* K O R E A *

ANAM ELECTRONICS: Applied for liquidation
KYUNGKI CHEMICAL: Company declared bankrupt


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

PILIPINO TELEPHONE: Rejects SEC proposal to suspend trading


* S I N G A P O R E *

FIRST CAPITAL: FCC posts $18m interim loss, expects tough H2
NEPTUNE ORIENT: NOL sale hailed but debts a concern


* T H A I L A N D *

CROWN SEAL: Crown Seal in debt agreement
KASET THAI: Wansley, exec in 'fierce argument' before killing
PHOENIX PULP & PAPER: SET poised to expel firm
STP&I: Asks creditor for debt rescheduling
THAI AIRWAYS: Top alliances to bid for 23% of THAI in October


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

ACHIEVEMENT PLASTICS INTERNATIONAL: Winding-up petition
-------------------------------------------------------
A petition for the winding up of Achievement Plastics
International Company Limited was presented to the High Court on  
Mar 1 by Chan Yim Ling of 5ht Floor, 60 Pei Ho Street, Sham Shui
Po, Kowloon, and the said petition is directed to be heard before
the court at 11:00 am on April 21, 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.


CITIC PACIFIC: Net down 62% to HK$2.8b
--------------------------------------
Citic Pacific yesterday said that net profit last year      
slumped 62 per cent to HK$2.8 billion (S$623 million) due to a
lack of exceptional gains, losses at associate Cathay Pacific and
slower property sales.

The Hongkong-listed flagship of China's most powerful investment
arm fell short of analysts' expectations, whose consensus
estimate as published in The Estimate Directory was HK$3.2
billion.

The diversified red chip has investments in infrastructure
projects in China and holds stakes in major Hongkong companies
like Cathay Pacific and China Light & Power, Hongkong's largest
power company.

Yesterday, Citic Pacific chairman Larry Yung noted that the
investments in infrastructure in China such as roads, power
generation and bridges had served the company well, giving it a
total cash flow of HK$2.6 billion.

They also contributed significantly to the financial stability of
the company, when Citic Pacific raised US$300 million (S$517
million) from the sale of some assets to lower its high gearing.

An aggressive investment programme before the Asian financial
crisis saddled Citic Pacific with debts of HK$21 billion as at
Dec 31, 1998. As at yesterday, the amount had whittled down to
HK$18.3 billion -- something which management was at pains to
point out yesterday.

Turnover at Citic Pacific dropped to HK$13.6 billion, down 18.5
per cent from 1997's HK$16.7 billion. Earnings per share dropped
to HK$1.32 from HK$3.46. Dividend per share was 70 HK cents
against 100 HK cents in the previous year.

Although its associate Cathay Pacific incurred a HK$542 million
loss last year, Mr Yung said there was no intention to sell its
25 per cent stake in the carrier. Neither does it plan to sell
its 20 per cent stake in China Light & Power (CLP).
(Singapore Business Times 19-Mar-1999)


CONCORD GLORY DEVELOPMENT LIMITED: Winding-up order
---------------------------------------------------
On March 3, 1999 a winding-up order was presented for
Concord Glory Development Limited. The registered office is
16/F., Surson Commercial Building, 140-142 Austin Road,
Tsimshatsui, Kowloon. Date of Presentation of Petition: Dec 29,
1998. Official Receiver & Provisional Liquidator: T.E. Berry.


FOREVERGREEN TAIWANESE RESTAURANT: Winding-up petition
------------------------------------------------------
A petition for the winding up of Forevergreen Taiwanese
Restaurant Company Limited was presented to the High Court on  
Mar 11 by Lam Siu Yui of Front Block, 9th Floor, Mayming
Building, 312 Nathan Road, Kowloon, and the said petition is
directed to be heard before the court at 9:30 a.m. on May 5, 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.


GUANGZHOU INTERNATIONAL: Gzitic's fall traps monks in unholy mess
-----------------------------------------------------------------
According to the South China Morning Post, the monks of the Liu
Rong Temple in Guangzhou have about 20 million yuan deposited
with Gzitic. Representatives of the temple were among about 200
mainlanders present at domestic creditors' meeting held
yesterday.

A monk of the temple said the Guangzhou municipal government had
promised to repay the amount due to them by the end of the year.
He said if the promise was not kept, the temple would resort to
legal action.

Another charity organization, the Guangdong Poverty Relief Fund
has about 10 million yuan deposited with it. A fund official said
the charity's operations were affected as it had counted on
interest payments to cover operating expenses.

Unlike foreign creditors, domestic creditors generally felt more
reassured after meeting officials from the Guangzhou government
and Gzitic.

One representative from a domestic non-bank financial institution
said he thought the firm would be saved through restructuring
while back in January he thought it would go bankrupt.


METRO STATE DEVELOPMENT LIMITED: Winding-up order
-------------------------------------------------
On March 3, 1999 a winding-up order was presented for Metro State
Development Limited. The registered office is Block A2, 7/F.,
Cheung Wah Factory Building, 39-41 Sheung Heung Road, Tokwawan,
Kowloon. Date of Presentation of Petition: Dec 29, 1998.
Official Receiver & Provisional Liquidator: T.E. Berry.


METRO WISH INTERNATIONAL LIMITED: Winding-up order
--------------------------------------------------
On March 3, 1999 a winding-up order was presented for Metro Wish
International Limited. The registered office is 12/F., Citimark,
28 Yuen Shun Circuit, Siu Lek Yuen, Shatin, New Territories.
Date of Presentation of Petition: Dec 29, 1998. Official Receiver
& Provisional Liquidator: T.E. Berry.


PARK MASTER COMPANY LIMITED: Winding-up order
---------------------------------------------
On March 3, 1999 a winding-up order was presented for
Park Master Company Limited. The registered office is Flat E,
39th Floor, Block 2, Discovery Park, 398 Castle Peak Road, Tsuen
Wan, New Territories. Date of Presentation of Petition: Dec 22,
1998. Official Receiver & Provisional Liquidator: T.E. Berry.


SHELL ASIATIC ENTERPRISES: Notice to creditors to prove debts
-------------------------------------------------------------
The creditors of Shell Asiatic Enterprises Limited, which is
being voluntarily wound up, are required on or before April 16 to
send in their names, addresses and particulars of their debts or
claims to the Liquidators of the said company, David Richard
Hague, Jan Gerard Willemszoon Blaauw 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.


UNIVERSAL LABORATORY LIMITED: Winding-up order
----------------------------------------------
On March 3, 1999 a winding-up order was presented for Universal
Laboratory Limited. The registered office is Flat A-F, 16th
Floor, Block A, Marvel Building, 25-31 Kwai Fong Crescent, Kwai
Chung, New Territories. Date of Presentation of Petition: Dec 22,
1998. Official Receiver & Provisional Liquidator: T.E. Berry.


VELOX INVESTMENT LIMITED: Winding-up petition
---------------------------------------------
A petition for the winding-up of Velox Investment Limited was
presented to the High Court on Jan 26 by Chiu Sin Chi of Room
708, 8th Floor, 63 Tai Kok Tsui, Kowloon, and the said petition
is directed to be heard before the court at 11:00 am on  Mar 31,
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.


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

PT MERPATI: State replaces board members of ailing airline
----------------------------------------------------------
The Indonesian State Minister of State Enterprises has replaced
members of the board of management of PT Merpati Nusantara
Airlines, including the President. Merpati is apparently nearing
insolvency due to its failure to repay outstanding debts. (M2
Airline 18-Mar-1999)


=========
J A P A N  
=========

COSMO SECURITIES: To close HK subsidiary
----------------------------------------
Shares of Cosmo Securities Co. (8611 JP ) rose 50 yen, or 27
percent, to 235, a 52-week high. The mid-size Japanese brokerage
said it will soon close its Hong Kong subsidiary, the company's
only overseas unit, and post a one-time loss of more than 5
billion yen ($42.5 million) for the year to March 31. (Bloomberg
19-Mar-1999)


NISSAN MOTOR: Nissan chief admits mishandling debt
--------------------------------------------------
The chairman of Japan's troubled Nissan Motor Co, which is      
in talks with France's Renault SA, admitted yesterday that      
his mishandling of heavy debts drove the firm into a desperate
search for foreign help.

"Up until a few years ago, the holding of large liabilities with
interest in Japan was not necessarily a problem in management,"
Yoshifumi Tsuji told a news conference.

"But it is becoming clear that the idea does not work," he said.
"We cannot comment on other Japanese firms, but at least Nissan
managers ... are responsible for leaving growing liabilities with
interest untouched."

Japanese media said the remarks indicated that Mr Tsuji was ready
to resign once Nissan strikes a final deal with Renault.

Renault said Tuesday it had begun exclusive negotiations with
Japan's No 2 carmaker to take a 35 per cent stake for a reported
700 billion yen (S$10 billion).

Mr Tsuji would not comment on the negotiations with Renualt. "We
think we are about to find a partner, with whom we will survive
the 21st century together."

The Sankei Shimbun daily, quoting ministry sources, said Nissan
may have to hive off its defence operations or sell them entirely
to allow the deal to go ahead. (Agence France-Presse and
Singapore Business Times 19-Mar-1999)


SEIYU LTD: In talks with creditors
----------------------------------
Shares of Seiyu Ltd. (8268 JP ) rose 80 yen, or 18 percent, to
521 after the company said it is in talks with creditors to waive
some of its 550 billion yen in debt.

The company denied a Nihon Keizai newspaper report that most
creditors of Tokyo City Finance, a consumer finance company
affiliated with the Seiyu group, have agreed to forgive more than
200 billion yen of loans provided to the troubled company.

Nikkei English News reported that the operator of retail stores
plans to cut its parent company workforce by 15 percent and
reduce consolidated debt by 40 percent in three years.
(Bloomberg 19-Mar-1999)


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

ANAM ELECTRONICS: Applied for liquidation
-----------------------------------------
According to the Korean language Maeil Kyungje's Business Brief
section, the Anam Electronics Company applied for liquidation.

Earlier newspaper reports mentioned that the Anam Electronics
company's workout program was terminated on March 17th, 1999 when
the main creditor of the electronics maker, Seoul Guarantee
Insurance Company, refused to continue the company's workout
program on the grounds of weak company performance.


KYUNGKI CHEMICAL: Company declared bankrupt
-------------------------------------------
The Asian Wall Street Journal reported that the Kyungki Chemical
Company has been declared bankrupt after failing to honor
maturing loans for two straight days.  The fertilizer maker
reportedly defaulted on 160 won in loans to a number of banks.  
Shares of the company will resume trading under supervision of
the Korea Stock Exchange next week.

Earlier newspaper reports stated that its the main creditor,
Korea Industrial Bank, decided to repeal the workout program for
Kyungki Chemical Company on March 15th, 1999, after it concluded
that the management of the company was not cooperating with the
agreed to workout procedure.  This workout procedure reportedly
included an equity conversion of 16 billion won in outstanding
loans, rescheduling of the remaining debt, and a capital
reduction of the companies shares at a 3.95 to 1 ratio.  

The company president, who is also the biggest stock holder, was
identified in reports as delaying the implementation of the
capital reduction plan which was the condition for a capital
injection by the creditor banks.  

Once the workout program was terminated, the Kyungki Chemical
Company was obligated required to start paying back its debts
immediately.


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

PILIPINO TELEPHONE: Rejects SEC proposal to suspend trading
-----------------------------------------------------------
Debt-ridden Pilipino Telephone Corp. (Piltel) has rejected the
Securities and Exchange Commission's proposal that the cellular
phone firm voluntarily suspend the trading of its shares in the
stockmarket, warning that it will cause greater harm to the
investing public.

SEC chairman Perfecto Yasay Jr. earlier urged Piltel to
voluntarily suspend trading of its shares in the Philippine Stock
Exchange during a meeting last March 11.

The suspension, he said, was aimed at protecting the investing
public and force Piltel to disclose other information that have
not been made public.

In a letter to Yasay, Piltel warned that SEC's proposal would
"potentially cause greater problems in the market resulting in
potentially greater harm to the investing public."

Piltel also reiterated that it was never remiss in its duty to
disclose material information to the public. "We believe that
Piltel has fully complied with its disclosure obligation and that
its financial condition has been made public in accordance with
the Commission's full disclosure rules," the company said.

The company has asked for the SEC's support especially at this
time when it is facing tight liquidity problems. "All the more,
the Commission's support and assistance to Piltel, which has
dutifully complied with its reporting and disclosure
requirements, is needed in this difficult and trying time. We
hope that we can expect, at the very least, the Commission's
restraint against taking any drastic action affecting the trading
on Piltel's shares," Piltel said.

Piltel, the country's second cellular phone company, came under
fire from securities regulators for failing to disclose the true
magnitude of its debts. It has accumulated debts of P34.9 billion
or more than double the amount reported to the SEC as of Sept. 30
last year.

Documents earlier submitted to the SEC showed that Piltel had
total debts of only P16.7 billion as of end-September 1998. The
company's debts swelled to P34.9 billion after it included in its
books a $280 million telephone roll out project in Mindanao with
Marubeni Corp. of Japan as contractor.

In its letter to SEC, Piltel said that based on the financial
statements for the year ended Dec. 31, 1997 that it submitted to
the SEC, its total liabilities amounted to P25.4 billion.

Under the full disclosure rules, all publicly-listed companies
are required to divulge any material information, specifically
their financial condition to the public.

The SEC earlier formed a three-man team to review the books and
financial records of Piltel to determine whether the cellular
phone operator deliberately withheld material information.

The loans were reportedly incurred when the Cojuangco family was
still in control of Piltel and Philippine Long Distance Telephone
Co. The First Pacific Group of Hongkong acquired control of PLDT
in December last year after purchasing 52.7 percent of Philippine
Telecommunications Investment Corp. (PTIC) which owns 21.5
percent of PLDT. (Manila Times 19-Mar-1999)


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

FIRST CAPITAL: FCC posts $18m interim loss, expects tough H2
------------------------------------------------------------
First Capital Corporation (FCC) yesterday announced losses       
of $17.79 million for the half-year ended Dec 31, 1998 and       
said it expects the remainder of the year to be "difficult and
challenging".

Although interim turnover rose $83.8 million, or 35 per cent, to
$320.25 million on the back of higher contributions from the sale
of development properties, the depressed residential property
market saw FCC's operating profits (before interests and exchange
losses) tumble a huge $54.29 million, or 96 per cent, to just
$2.19 million.

In the first half of FY97, mainboard-listed FCC pulled in
earnings of $6.3 million.

Loss per share in the period under review came to 7.35 cents,
against earnings per share of 0.88-cent previously. Net tangible
assets per share fell 61 cents to $3.85. (Singapore Business
Times 19-Mar-1999)


NEPTUNE ORIENT: NOL sale hailed but debts a concern
---------------------------------------------------
Neptune Orient Lines' sale of its North American stacktrain       
unit was greeted favourably by industry players, although       
financial analysts cautioned that a lot more would be needed to
lighten its debt pile.

Despite the group's announcement that the sale would yield a net
gain of $288 million or 40 cents a share, investors' response was
muted.

Yesterday, NOL's shares closed unchanged at 59 cents, albeit on a
much higher volume than that on Wednesday, when it announced the
sale of the stacktrain network, Land Transport Services (LTS),
for US$315 million (S$543 million) to Apollo Management.

"The market has no idea as to what the magnitude of NOL's losses
will be," said one dealer.

According to analysts' consensus forecast in Barra's latest
Estimate Directory, NOL will post a loss of around $275 million
for FY98, down slightly from 1997's $297.3 million loss.

The group's gearing, which stood at 7.45 at the end of the first
half of 1998, would be reduced to 4.8 as a result of the sale of
the stacktrain unit. (Singapore Business Times 19-Mar-1999)


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

CROWN SEAL: Crown Seal in debt agreement
----------------------------------------
Crown Seal Plc yesterday signed an agreement to restructure part
of its $5.6 million debt with Tokyo Mitsubishi Bank.

The bank agreed to extend the repayment period to three years
with an 18-month grace period, according to Pramut Buranasiri,
managing director of Crown Seal.

The bank also reduced the interest rate to 3% from 7%, he said.
Mr Pramut said the company's remaining one billion baht in debts
were long-term and mostly baht-denominated. "We have been
regularly servicing our debts." Crown Seal Plc controls about 75%
of the market for seals among local soft-drink bottlers.
(Bangkok Post 19-Mar-1999)


KASET THAI: Wansley, exec in 'fierce argument' before killing
-------------------------------------------------------------
Four days before he was shot dead, auditor Michael Wansley had a
fierce argument with an executive of Namtal Kaset Thai, who is a
prime suspect in the case, over an unpaid debt that the firm owed
local sugar cane growers, said a farmers' leader.

Mana Ritthichaijamorn, chairman of Zone 9 Sugar Cane Planters
Association, disclosed the incident as police were trying to
confirm their theory that the murder of the Australian auditor
followed his restructuring job at the financially-ailing Namtal
Kaset Thai Co.

The antipathy between Wansley and sugar firm executive Boonphan
Sutthiwiriwan accumulated during the months that the auditor was
handling the company's debt restructuring. But Mana said it was
clearly witnessed during a meeting between the company's
management and cane farmers to discuss the debt matter on March
6, only four days before he was killed.

During the meeting, Mana said Boonphan was unable to answer
questions from angry farmers about where a Bt200-million fund,
from which they were meant to be repaid, had gone.

He added that Boonphan also attempted to pit Wansley against the
crowd throughout the entire meeting, which irritated the
Australian auditor and prompted him to threaten to "dismiss" the
executive.

Mana, who also attended the meeting, said Wansley later told a
company executive, whose name has also been linked to the case,
that he would not be responsible for debt incurred by faulty
management.

Boonphan is so far the only executive to have been arrested
although police said they are trying to find evidence against the
other senior partner in the firm.

Meanwhile, Nakhon Si Thammarat police, at the request of
investigators working on the murder case, on Thursday began a
manhunt to apprehend Somphong Bangsakul, the alleged gunman,
after learning from another suspect -- Hassanai Sathawal -- that
he had returned to his home province following the murder.

Hassanai was arrested in the province on Wednesday and is still
under detention at the local police headquarters for further
questioning.

Apart from Somphong's reported admission that he is a former
policeman who became a hired murderer after serving a 20-year
jail term for robbery and murder, investigators have provided few
details on how the case developed.

Hassanai was arrested after a mobile phone registered under his
name was found near the van in which Wansley was killed last
Wednesday. Police subsequently found that Hassanai was a friend
of Somphong. Somphong and Hassanai are both natives of Nakhon
Sawan.

Police on Thursday received approval from the Nakhon Sawan court
to further detain Chalong Phinphong, the first suspect arrested
in the case, for a further 12 days. Chalong refused to speak when
questioned by reporters, simply saying: "I know nothing about the
case. I'm afraid I'll be silenced." (The Nation 19-Mar-1999)


PHOENIX PULP & PAPER: SET poised to expel firm
----------------------------------------------
The Stock Exchange of Thailand is ready to expel Phoenix Pulp &
Paper Ltd if shareholders cannot pressure the company for
sensitive details of some questionable transactions, according to
an exchange executive.

Patareeya Benjapholchai, senior vice president of the Stock
Exchange of Thailand (SET), told reporters on Thursday that the
SET will give no more time to the pulp and paper company.

"We have given the company over a year to disclose the
information," she said, adding that the company has shown clear
intention to violate rules and regulations.

Phoenix Pulp has been under scrutiny because of some
shareholders' complaints sent to the exchange that the company's
management might not be transparent and there may have been
transactions for the management's benefit.

The company later appointed PricewaterhouseCoopers as an
independent auditor, as ordered by the exchange, which completed
the special investigation last year.

According to the exchange, the independent auditor indicated that
some of Phoenix Pulp's executives were involved in the company's
investment in Siam Monex Co Ltd, a subsidiary.

Based on the Stock Exchange of Thailand Act, listed companies
need to submit reports in Thai. However, the report has not yet
been sent to the SET.

Failing to submit the report, Phoenix was suspended from trading
this month. The latest share price, on March 11, was Bt19.25.

Phoenix Pulp is scheduled to hold an ordinary shareholders'
meeting on March 29 and the SET has urged shareholders, who are
suspicious of the management team, to get the information they
demand.

"The exchange is unauthorised to pressure the company for the
information but shareholders are. Moreover, the board of
directors need to closely supervise the management team. However,
if they cannot get the information, we have to take action,"
Patareeya said. (The Nation 19-Mar-1999)


STP&I: Asks creditor for debt rescheduling
------------------------------------------
STP&I, a steel fabrication manufacturer under the Sino-Thai
Group, is asking the HongKong Shanghai Banking Corporation
(HSBC), its main creditor, to reschedule payment on its $10
million debt.

STP&I Chief Executive Officer Udomsak Chakreyavanich said
negotiations with HSBC is expected to take between one or two
weeks.

Udomsak, however, declined to reveal any details of the loan
repayment schedule, saying that it is being discussed with the
creditor.

"The drop in the company's total revenue from 1.738 billion baht
in 1997 to 1.2 billion baht last year is partially the reason why
we are requesting for debt rescheduling," Udomsak said.

The $10 million (about 360 million baht) is a portion of the
company's total liability of 847 million baht. In 1997, the
company's total debt was 1.2 billion baht.

Despite the crippling economic conditions in Thailand and its
neighbors, resulting in decreased steel consumption, STP&I still
posted consecutive operating profits -- 50.3 million in 1997 and
40.4 million in 1998. (Business Day [Thailand] 19-Mar-1999)


THAI AIRWAYS: Top alliances to bid for 23% of THAI in October
-------------------------------------------------------------
Member airlines of two of the world's largest airline groupings
-- Star Alliance and One World -- will bid for a significant 23
per cent stake in Thai Airways International in an auction
expected to take place in October, THAI president Thamnoon
Wanglee says.

The government is reducing its holdings from the current 93 per
cent to 70 per cent as part of the privatisation of the national-
flag carrier.

Star Alliance members Lufthansa, SAS, United Airlines, Varig and
Air Canada will form a new investment firm to take part in the
THAI share auction, he said.

Newer members of Star Alliance -- All Nippon Airways and
Singapore Airlines -- could also have an interest in the bid, he
added.

THAI is also a member of Star Alliance.

In addition to Star Alliance, British Airways and Qantas, both of
which are founding members of another world airline grouping, One
World, will also bid for the THAI shares.

Under the privatisation plan, THAI will sell 230 million shares
in the auction to the winner who will become its strategic
partner.

THAI will today sign a memorandum of understanding with CS First
Boston Group on technical advice for the privatisation plan. The
memorandum will allow CS First Boston to begin a study which will
be completed within the next two months. (The Nation 19-Mar-1999)


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

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,
DC USA.  Debra Brennan and Lexy Mueller, Editors.

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

This material is copyrighted and any commercial use,
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The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for members
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balance thereof are $25 each. For subscription information,
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            * * * End of Transmission * * *