---

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

      Tuesday, March 23 1999, Vol. 2, No. 57

                    Headlines

* C H I N A   &   H O N G   K O N G *

ADVANCED DIGITAL INTERNATIONAL: Winding-up petition
AWT REALTY: Writ filed against AWT chairman
CENTALINE PROPERTY: Centaline sued over unpaid rents
FOUR SEAS TRAVEL: Board falls to South China
GUANGZHOU INTERNATIONAL: Gzitic 'will soon repay creditors'

HOSTMAP INTERNATIONAL INVESTMENT: Winding-up petition
HYUNDAI GROUP: Hyundai may not make required debt cuts
MANREX LIMITED: Winding-up petition
MAYSON DEVELOPMENT COMPANY: Winding-up petition
WORLDPLEX INDUSTRIAL LIMITED: Winding-up petition


* I N D O N E S I A *

PT ASTRA INTERNATIONAL: Will pay creditors if plan is approved
PT INTI INDORAYON UTAMA: Will miss $15 million payment


* J A P A N *

ASAHI BANK: Moody's downgrades Asahi
HITACHI: S&P lowers Hitachi's long-term debt
LONG TERM CREDIT: Govt to decide on fate of subordinated loans
NIPPON CREDIT: Govt to decide on fate of subordinated loans
NISSAN MOTOR: Accepts Renault offer in principle

NISSAN MOTOR: Nissan's books leave a lot to be answered for
TOKAI BANK: Moody's downgrades Tokai


* K O R E A *

A-JU TRANSPORTATION & TRAVEL: Starts creditor reconciliation
DAEWOO GROUP: Will undergo restructuring -- senior gov't official
DURAE METEK: Company starts liquidation
DURAE TRADING: Company starts liquidation
SAMSUNG GROUP: Samsung faces more losses from auto sale


* M A L A Y S I A *

COMMERCE ASSET: CAHB posts RM102.5mil profit
PARIT PERAK: PPHB posts pre-tax loss of RM33.24mil
RED BOX: Court to set hearing date on winding-up petition
TAN CHONG: Falls RM3.462mil in the red


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

PHILIPPINE AIRLINES: PAL creditors returning two Airbus planes


* S I N G A P O R E *

STAMFORD RAFFLES CLUB: Doubts linger over future of club


* T H A I L A N D *

SIAM CITY CEMENT: SCCC to sell non-core businesses
THAI AIRWAYS: Pursuit of THAI is not just about one airline
THAI OIL: PTT tipped to buy 31% stake in Thai Parazylene
UNITED COMMUNICATIONS: Win-win and no haircuts in Ucom reform


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

ADVANCED DIGITAL INTERNATIONAL: Winding-up petition
---------------------------------------------------
A petition for the winding up of Advanced Digital International
Limited was presented to the High Court on Feb 2 by Cheung Koon
Hang of Room 1748, Tsui To House, Tsui Ping Estate, Kowloon, and
the said petition is directed to be heard before the court at
9:30 a.m. on April 7, 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.


AWT REALTY: Writ filed against AWT chairman
-------------------------------------------
According to the Hong Kong Standard, a writ has been filed by a
private real estate agency -- Paramatta Real Estate Agency
against chairman of listed AWT Realty, David Leung Tze-hang, for
payment of $223,204.

Paramatta said in the writ that it entered into with 401 Laundry
Services, the first defendant, in December 1997 to lease a
premise in City One Shatin. Mr Leung, the second defendant,
agreed to pay the money if the first defendant failed to do so.
But no payment was made by either the first or the second
defendant, according to the writ.


CENTALINE PROPERTY: Centaline sued over unpaid rents
----------------------------------------------------
According to the Hong Kong Standard, a private company, VicBold,
has filed a writ against Centaline Property to demand payment of
$311,400, including unpaid rents, licence fee and rates.

The writ said Centaline signed an agreement to lease a space in
Ngau Tau Kok for four years from November 16 1996 to November 15
2000 but had not paid monthly rents of $84,500 since January this
year and monthly licence fee of $13,000 since last December.


FOUR SEAS TRAVEL: Board falls to South China
--------------------------------------------
According to the South China Morning Post, a bitter row between
the new and former controlling shareholder of airline-ticket
vendor Four Seas Travel International intensified yesterday over
the appointment of directors.

South China Holdings and related parties, now controlling 85.76
per cent of Four Seas, yesterday approved the appointment of
eight representatives as the company's directors.

During a marathon board meeting, the new directors moved to
suspend chairman Leung Yueng Lai-ling and her husband, who is
vice-chairman. The new board then voted for South China chairman
Robert Ng Hung-sand as acting chairman of Four Seas and South
China director Christina Cheung Choi-ngor as vice-chairman.

The Leungs declared South China's appointments and the board
meeting invalid, saying South China had failed to follow Bermuda
company law under which Four Seas was incorporated.

Ms Cheung said the appointments had taken effect immediately
after the shareholders' approval and the Four Seas board would
investigate some past transactions.

At a special Four Seas general meeting on April 14 called by
South China and related parties, motions would focus on removing
as directors the Leungs and three directors associated with them.

Ms Cheung said Four Seas' ticketing services were expected to
resume next week.

The Hong Kong Standard reported on the personnel reshuffle on the
board and said South China Strategic Investment pledged to pump
in an estimated $20 million in the short term.

The report said Mrs Leung pointed out that the appointment of the
eight new directors is against provisions number 88 of the
company ordinance.


GUANGZHOU INTERNATIONAL: Gzitic 'will soon repay creditors'
-----------------------------------------------------------
According to the Hong Kong Standard, a state television report
said Gzitic will very soon repay money owed to all creditors and
the Guangzhou government doesn't wish for Gzitic to go bankrupt.
No details of a rescue plan nor a timetable for repayment was
given.

A spokesman for the Guangzhou government told Dow Jones Newswires
yesterday that Gzitic's problem was that it's being pushed by
others; if it's given a break, it would be able to recover.

According to another official in the Guangzhou Development
Planning Commission, the government does not yet have a detailed
plan for Gzitic's for restructuring and reviving Gzitic.


HOSTMAP INTERNATIONAL INVESTMENT: Winding-up petition
-----------------------------------------------------
A petition for the winding up of Hostmap International Investment
Limited was presented to the High Court on Feb 11 by Chung Tin
Hung of Room 309, Wong Tung House, Tung Tau Estate, Kowloon City,
Kowloon, and the said petition is directed to be heard before the
court at 9:30 a.m. 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.


HYUNDAI GROUP: Hyundai may not make required debt cuts
------------------------------------------------------
The Korea Times reported in a news analysis by a staff reporter
that the Hyundai Group will have to raise an additional 8 to 9
trillion won to reduce its debt to equity ratio to 200 percent by
the end of this year.

Last December, Hyundai was among a number of groups that signed
an agreement with the Korean government calling for, among other
things, the reduction of their debt-to-equity ratios to below 200
percent by the end of 1999.

Financial Supervisor Commission (FSC) regulators are insisting
that asset reevaluations and non-monetary investments will not be
acceptable means to reduce debt ratios, meaning Hyundai will have
to find more foreign investment, execute capital increases, and
sell overseas assets.

Asset evaluations allow conglomerates to re-adjust real estate
prices upwards, and add the increase to their capital base.  Non-
monetary investments refers to the act of acquiring equity stakes
through the sales of patents and other non-cash properties.  
Although current commercial laws clearly define asset
reevaluations as a legal method of capital assessment, the FSC
has changed its stance and will not allow their use.

Earlier newspaper reports listed Hyundai's end of year 1998 debt
to equity ratio as standing between 320 and 330 percent.  


MANREX LIMITED: Winding-up petition
-----------------------------------
A petition for the winding up of Manrex Limited was presented to
the High Court on  Feb 10 by  Wu Tak Shan of No. 81, Tai Lam
Chung Tsuen, Tuen Mun, New Territories, and the said petition is
directed to be heard before the court at 9:30 a.m. 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.


MAYSON DEVELOPMENT COMPANY: Winding-up petition
-----------------------------------------------
A petition for the winding up of Mayson Development Company
Limited was presented to the High Court on Feb 12 by Choi Pak Kan  
of 10th Floor, 33A Oak Street, Tai Kok Tsui, Kowloon, 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.


WORLDPLEX INDUSTRIAL LIMITED: Winding-up petition
-------------------------------------------------
A petition for the winding up of Worldplex Industrial Limited
was presented to the High Court on Jan 21 by Carrefour Korea
Limited whose registered office is situate at 11F, Sanaedle
Building 649-10, Yeoksamdong, Kangnam-ku, Seoul, 135-080 Korea,
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 the Solicitors for the Petitioner, Clifford
Chance, 30th Floor, Jardine House, One Connaught Place, Central,
Hong Kong on payment of the regulated charges for the same.


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

PT ASTRA INTERNATIONAL: Will pay creditors if plan is approved
--------------------------------------------------------------
The Asian Wall Street Journal reported PT Astra International, an
Indonesian conglomerate in the automotive and agro-industry
sectors, has told its creditors that if its restructuring plan is
approved it can resume interests payments on its debt.  

Foreign creditors will be asked to approve the new restructuring
plan on April 21. The complex plan reportedly involves two
tranches from commercial lenders, and one for bondholders.  All
lenders would start getting current interest payments starting on
July 1, with overdue loans in a first tranche getting repaid more
quickly than loans in the second tranche.  

Astra's president is reportedly considered one-on-one meeting
with major creditors to tailor the overall agreement to meet
specific demands.  Under the Indonesian bankruptcy standards
employed by Astra, at least half of its creditors that also
represent two thirds of the outstanding debt must approve the
restructuring plan.

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.

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 are expected
to drop further this year.


PT INTI INDORAYON UTAMA: Will miss $15 million payment
------------------------------------------------------
The Asian Wall Street Journal reported that the Indonesian pulp
and paper producer, PT Inti Indorayon Utama, has issued a
statement that it won't make a $15 million coupon payment on its
Eurobonds and the principal amount outstanding that is due on
March 29.  Indorayon's debts reportedly total to $360 million,
and the company has indicated that it will not be making future
interest or principal payments as it pursues debt restructuring.

Indorayon's North Sumatra mill near the city of Porsea has been
closed since January due to civil unrest.  The Porsea mill has a
yearly production capacity of 240,000 metric tons of hardwood
pulp and 60,000 tons of rayon fiber.  Indonesia's President
Habibie has also ordered that the mill not be started up again
until the environmental impact of the plant is assessed.

The article also reported that Duff & Phelps Credit Rating
Company has downgraded Indorayon's U.S. dollar senior notes from
CCC to DD.   


=========
J A P A N  
=========

ASAHI BANK: Moody's downgrades Asahi
------------------------------------
An Agence France-Presse report in the Korea Times stated that
Moody's Investor Services reduced its long-term senior unsecured
debt for Asahi Bank Ltd. from Baa1 to Baa2.  The financial
strength rating of the bank was also lowered from D to E+.  

The action was accompanies by an assessment that stated that its
financial fundamentals has deteriorated to a level requiring
substantial public capital injection.  Asahi is based in Tokyo,
and reportedly has exposure to several extremely weak
construction credits.

The article also stated that Asahi has already asked for 500
billion yen in government recapitalization funds, but Moody's
believes that the effect of this injection would be minimal.  


HITACHI: S&P lowers Hitachi's long-term debt
--------------------------------------------
The Asian Wall Street Journal reported that Standard & Poor's
Ratings Group has lowered the long-term debt of Hitachi Ltd. and
its units from AA to A+.  This down grade reportedly reflects
predictions that Hitachi's earnings and cash flow levels will
remain low as the Japanese economic downturn continues.  
Approximately 70 percent of Hitachi's consolidated sales are in
Japan.  

Additionally, the long-term ratings of Hitachi Credit Corporation
were lowered from AA- to A+, and its short term ratings were cut
from A-1+ to A-1.  Hitachi owns 52.3 percent of Hitachi Credit
Corp.


LONG TERM CREDIT: Govt to decide on fate of subordinated loans
--------------------------------------------------------------
The Financial Reconstruction Commission has yet to decide how to
handle insurance firms' subordinated loans to Long-Term  Credit
Bank of Japan and Nippon Credit Bank, commission Chairman Hakuo
Yanagisawa said Friday.

Yanagisawa, who also serves as state minister for financial
reconstruction, told the House of Representatives Finance
Committee that the commission needs more time to discuss how best
to deal with the loans.

The government took temporary control of LTCB and NCB in October
and in December 1998, respectively, declaring the banks were
effectively insolvent. The commission is in charge of
transferring the banks' assets and operations to healthy
successors.

Yanagisawa emphasized that when the government took over the
banks, Prime Minister Keizo Obuchi issued a statement vowing to
protect all credits to them. (Jiji Press English News
19-Mar-1999)


NIPPON CREDIT: Govt to decide on fate of subordinated loans
-----------------------------------------------------------         
The Financial Reconstruction Commission has yet to decide how to
handle insurance firms' subordinated loans to Long-Term  Credit
Bank of Japan and Nippon Credit Bank, commission Chairman Hakuo
Yanagisawa said Friday.

Yanagisawa, who also serves as state minister for financial
reconstruction, told the House of Representatives Finance
Committee that the commission needs more time to discuss how best
to deal with the loans.

The government took temporary control of LTCB and NCB in October
and in December 1998, respectively, declaring the banks were
effectively insolvent. The commission is in charge of
transferring the banks' assets and operations to healthy
successors.

Yanagisawa emphasized that when the government took over the
banks, Prime Minister Keizo Obuchi issued a statement vowing to
protect all credits to them. (Jiji Press English News
19-Mar-1999)


NISSAN MOTOR: Accepts Renault offer in principle
------------------------------------------------
Nissan Motor co. has decided in principle to accept Renault SA;s
offer to take a 35% stake in the Japanese auto maker, a senior
Nissan executive said.

None of Nissan's top executives objected to the proposal during a
meeting on Friday, the executive said. Part of Renault's offer is
a proposal for the French car maker to dispatch two or three
managers to join Nissan's management team, the Nissan executive
said.

It wasn't clear how much Renault is offering for a 35% interest
in Nissan. Calculating from Nissan's current share price of about
429 yen, such a stake would be valued at about 400 billion yen
($3.41 billion). The Nihon Keizai, a Japanese business daily,
said Renault probably would pay 600 billion yen for a capital
linkup with Nissan. The Nissan executive declined to comment on
the figure. (Wall Street Journal 22-Mar-1999)


NISSAN MOTOR: Nissan's books leave a lot to be answered for
-----------------------------------------------------------
According to the South China Morning Post, DaimlerChrysler last
week stopped talking with indebted Nissan Motor about purchasing
a stake in the Japanese carmaker. Renault of France has stepped
forward with an offer that could provide as much as US$5.3
billion for the acquisition of 35 per cent of Nissan, which
Nissan's board will discuss at a board meeting on March 27.

DaimlerChrysler has said it decided against taking a stake in
Nissan in the interest of concentrating on its own business
operations. However, in private, the company told analysts that
despite having had 30 people examining Nissan's financial
statements for six months, it could not say for certain that it
grasped all the liabilities.  According to two fund managers and
a fund-management analyst briefed by DaimlerChrysler, the more
its team looked at Nissan, the more exposure there seemed to be.

A source close to DaimlerChrysler's research indicated that
Nissan's true liabilities -- not just debt but also such
potential obligations as pension contributions and hidden debts
-- were twice as great as the $21.2 billion that has been
disclosed.

The difference in Renault's decision to bid and DaimlerChrysler's
decision to withdraw has left investors sceptical.

Nevertheless, there is little concern that Renault has the
financial resources to pay for a Nissan stake as the company is
debt-free, has ample lines of credit, and is 44 per cent owned by
the French government.

Renault executives have insisted they have an accurate reading on
Nissan's business including its debts.

A source close to the negotiations said that Nissan had at first
revealed only limited information but in recent weeks it gave
answers to Renault executives that the French company considered
satisfactory.

The source said Nissan's real indebtedness was certainly greater
than the figure put forward by the company, and it is Nissan's
indebtedness outside what it is required to disclose that is a
cause of concern.


TOKAI BANK: Moody's downgrades Tokai
------------------------------------
An Agence France-Presse report in the Korea Times stated that
Moody's Investor Services reduced its long-term senior unsecured
debt for Tokai Bank Ltd. from Baa1 to Baa2.  The financial
strength rating of the bank was also lowered from D to E+.  

The action was accompanies by an assessment that stated that its
financial fundamentals has deteriorated to a level requiring
substantial public capital injection.  

The article also stated that Tokai has already asked for 600
billion yen in government recapitalization funds, but Moody's
believes that the effect of this injection would be minimal.  


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

A-JU TRANSPORTATION & TRAVEL: Starts creditor reconciliation
------------------------------------------------------------
The Pusan District Court advertised in the Korean language Maeil
Kyungje that the A-ju Transportation & Travel Company started its
creditor reconciliation procedure.  The creditors have until
April 28th, 1999 to file their claims.  The company's address is
89-1 Chungang-dong 4-ga, Chung-gu, Pusan and the president is Mr.
Kim Il-kyun.


DAEWOO GROUP: Will undergo restructuring -- senior gov't official
-----------------------------------------------------------------
A senior government official said yesterday that Daewoo Group,
the nation's third largest conglomerate or chaebol, will
inevitably undergo government-dictated corporate restructuring.

In a luncheon meeting with reporters covering the Ministry of
Finance and Economy yesterday, the official said, "On a short-
term basis, I don't believe that Daewoo will face a credit crunch
but I am uncertain as to the conglomerate's mid- and long-term
prospects." It is a highly unusual for a senior official to speak
on record about the "negative" future prospects for a major
business.

The official added that Daewoo would have to submit to corporate
restructuring involving the sale of an undetermined number of
subsidiaries.

Asked what subsidiaries would be up for sale to foreign
investors, he said, "It is only a matter of price."

As for a rumor that Daewoo Motor might be subject to a corporate
"workout" after its merger with Samsung Motor is completed, he
called it unlikely.

Some reports have it that Daewoo is financially unstable and its
planned acquisition of troubled Samsung Motor will only aggravate
the problem. These reports have been vehemently denied by Daewoo.

Daewoo Motor's takeover of Samsung's carmaking arm under the
government-initiated "big deals" or business swaps among
conglomerates is has made little headway due to differences over
the terms of a compromise. Daewoo is set is to give Samsung its
electronics arm in return for the the latter's carmaking
affiliate. (Korea Times 22-Mar-1999)


DURAE METEK: Company starts liquidation
---------------------------------------
The Seoul District Court advertised in the Korean language Maeil
Kyungje that the Durae Metek Company's liquidation plan was
approved.  The company's address is 158 Sindok-ri, Kwangdok-myon,
Chonan-shi and the presidents are Mr. Choi, Chung-kwang and Mr.
Kim Eul-tae.


DURAE TRADING: Company starts liquidation
-----------------------------------------
The Seoul District Court advertised in the Korean language Maeil
Kyungje that the Durae Trading Company's liquidation plan was
approved.  The company's address is 24 Yoeuido-dong,
Youngdeungpo-gu, Seoul and the presidents are Mr. Choi, Chung-
kwang and Mr. Kim Eul-tae.


SAMSUNG GROUP: Samsung faces more losses from auto sale
-------------------------------------------------------
South Korea's largest chipmaker Samsung Electronics, under      
fierce grilling from activist shareholders, revealed on      
Saturday that parent Samsung Group faced further losses from the
sale of its troubled automotive unit.

A group called The People's Solidarity for Participatory
Democracy (PSPD) told Samsung Electronics' annual shareholder
meeting that the company could lose a further estimated 329
billion won (S$464 million) due to a government-promoted deal,
under which Samsung is to give loss-making Samsung Motors to
Daewoo in exchange for its electronics unit.

PSPD said the swap will cause a major foreign shareholder to
exercise its option in Samsung Motors. Pan Pacific Industrial
Investments plc, based in Ireland, was entitled to sell 50
million Samsung Motors shares to several Samsung affiliates
including Samsung Electronics, said Jang Ha Sung, a professor at
Korea University leading the activist movement.

Pan Pacific bought 31 per cent of Samsung Motors for 420 billion
won and its sales of those shares could cause the 329 billion won
loss for Samsung Electronics, he said.

Samsung Electronics board chairman Yun Jong Yong said: "We
apologise for the loss. But losses from Pan Pacific won't be that
great." (Reuters and Singapore Business Times 22-Mar-1999)


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

COMMERCE ASSET: CAHB posts RM102.5mil profit
--------------------------------------------
Commerce Asset-Holding Bhd (CAHB), which is involved in various
financial businesses, recorded a 68.4% drop in pre-tax profit and
zakat to RM102.5mil for the year ended Dec 31, 1998, from
RM324.5mil in 1997.

The lower profits were attributed to higher loan and financing
loss and provisions, provisions for commitments and contingencies
and for doubtful debts totalling RM617.7mil, the company said in
a statement. (Bernama and The Star Online 22-Mar-1999)


PARIT PERAK: PPHB posts pre-tax loss of RM33.24mil
--------------------------------------------------
Parit Perak Holdings Bhd (PPHB) incurred a group pre-tax loss
after exceptional item of RM33.24mil for the half-year ended Dec
31, 1998, compared with a pre-tax profit after exceptional item
of RM3.96mil posted previously.

PPHB said in releasing its unaudited interim results that the
group turnover declined 36.18% to RM41.89mil from RM65.65mil
previously. (Bernama and The Star Online 22-Mar-1999)


RED BOX: Court to set hearing date on winding-up petition
---------------------------------------------------------
Red Box (Malaysia) Bhd said the court will decide on a hearing
date on whether to strike off or stay an application to restrain
Malayan Banking Bhd from taking any action to wind up the
company.

The date will be announced once it is known, said Red Box.

A default judgment was also obtained by Maybank against the
company for RM8.4 million. Red Box's application to set aside the
judgment is fixed for a hearing on June 21.

Furthermore, a judgment for a sum of RM5 million was obtained by
a bank in Singapore against its subsidiary, Red Box Overseas Pte
Ltd, and the company as the guarantor on May 18 1998. Red Box
says there has been no further development since then. (Business
Times 20-Mar-1999)


TAN CHONG: Falls RM3.462mil in the red
--------------------------------------
Tan Chong Motor Holdings Bhd has recorded a group pre-tax loss of
RM3.462mil for the year ended Dec 31, 1998, compared to a pre-tax
profit of RM335.392mil in 1997.

Tan Chong said in a statement to the KLSE that the group turnover
dropped 63% to RM939.043mil from RM2.56bil. (Bernama and The Star
Online 22-Mar-1999)


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

PHILIPPINE AIRLINES: PAL creditors returning two Airbus planes
--------------------------------------------------------------
European creditors are returning the two Airbus 330-300 aircraft
they got back from cash-strapped Philippines Airlines (PAL) to
push the carrier's rehabilitation. In a statement yesterday, PAL
said the planes are due back in Manila in the next few days for
routine maintenance checks before rejoining its fleet on April 1.

It said the return was relayed in a letter sent by French bank
Credit Agricole Indosuez, the leasing agent of PAL creditor
European Export Credit Agencies (EECA). PAL flew the two planes
last year to an Airbus storage facility in Chateauroux, France,
on EECA's demand after a spate of pilots' and workers' strikes
led to losses.

PAL said EECA's move followed its "satisfactory review" of the
carrier's fleet utilisation programme, a key part of the
airline's revised rehabilitation plan.

The plan, which aims to end PAL's losing streak by 2001, required
the carrier to downsize its fleet to 22 aircraft concentrating on
12 foreign and 17 local routes. It also called for the merger of
PAL's domestic and international operations and sale of non-core
assets such as its catering, maintenance and engineering
divisions. PAL has committed to raise US$200 million (S$344.7
million) by June this year to help pay the US$2.2 billion loans
secured from foreign creditors over the past years. Other major
creditors such as US Export-Import Bank and German bank
Kreditanstalt fur Wiederaufbau also backed the rehabilitation
plan, PAL said. (Singapore Business Times 22-Mar-1999)


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

STAMFORD RAFFLES CLUB: Doubts linger over future of club
--------------------------------------------------------
Provisional liquidators have been appointed for two      
companies which own and operate the Sir Stamford Raffles      
Club at Suntec City, throwing the future of the executive club
into doubt.

Sources last night confirmed a fax sent to BT which said that the
directors of Club Lifestyle Pte Ltd (CL) and Club Lifestyle Spa &
Wellness Club Pte Ltd (CLSWC) passed "appropriate resolutions" on
Friday to appoint Tay Swee Sze and Steven Phan of Arthur Andersen
as "joint and several provisional liquidators". The fax was
unsigned.

Sources said the liquidation will be confirmed by shareholders
and creditors in about two weeks' time.

Both companies own and operate Sir Stamford Raffles Club, billed
as "the world's largest executive city club" when it was
launched.

Unless a white knight can be found to rescue the club before the
next meeting, it will be wound up and its members will join the
queue of creditors, the sources said.

CL and CLSWC's main creditor is understood to be landlord Suntec
City.

The club is located on 114,000 sq ft of space spread over five
storeys in Suntec City.

When the membership drive was launched in February last year, the
club's promoters said it would boast a 7,000 sq ft wellness
centre, a spa, gym, five restaurants, a business centre, swimming
pool and tennis courts.

The fax said the companies which own the club have been adversely
affected by the downturn and the declining performance of the
leisure industry in Singapore and neighbouring countries.

It said company directors in the past months had made every
effort to seek participation by alternative parties. However, the
development of the club "has now become untenable", the fax said.
(Singapore Business Times 22-Mar-1999)


===============
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SIAM CITY CEMENT: SCCC to sell non-core businesses
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Siam City Cement Plc (SCCC) is planning to focus only on its core
cement and concrete businesses and intends to sell its other
businesses including its well-known Karat sanitary and ceramic
tile subsidiaries in accordance with the policy of its new
foreign shareholder Holderbank Financiere Glarus Ltd.

Siam Cement Plc's Cementhai Ceramics Co (CCCL) is reportedly
interested in buying Ceratech Co, the ceramic wall and floor
tiles subsidiary of SCCC.

In addition to Ceratech, which produces Karat-brand ceramic
tiles, SCCC also owns Karat Sanitaryware Plc and companies in
power generation, coal mining, trading and sanitary-fitting.

"If SCCC succeeds in exiting those non-core businesses, the
company would definitely return to profitability from this year,"
said a company source.

SCCC is looking at resuming dividend payments despite the fact
that the local cement industry is expected to take at least three
years to recover.

Unlike many other Thai companies, SCCC has not diversified too
much. SCCC's subsidiaries and affiliated companies have only
about US$100 million in debts compared to the parent firm's debts
of over US$500 million.

Sources said SCCC is looking for buyers to purchase Karat
Sanitaryware as the firm is considered "too large to be
swallowed" by Siam Cement. By sales volume, Karat is number one
in the Thai sanitaryware market, but by sales value Karat comes
in third place after American Standard and Siam Cement's
Toto/Cotto brands. (The Nation 22-Mar-1999)


THAI AIRWAYS: Pursuit of THAI is not just about one airline
-----------------------------------------------------------
The pursuit of Thai Airways International by the two global
airline alliances is an effort to invest not just in the airline
but the entire aviation, airports and travel industry of
Thailand, according to senior aviation industry analysts.

The move has raised many eyebrows in the local and regional
aviation industry, especially in relation to how it could affect
related issues such as negotiations of aviation traffic rights,
privatisation of airports and the entire Thai travel and tourism
industry.

Niels Lumholdt, managing director of Bangkok-based Aviation and
Tourism International, also believes the investment could affect
the privatisation of other state enterprises and indeed the
entire process of restructuring the national economy.

However, by opening up a bidding war between the Star and
Oneworld airline alliances, THAI has risked irritating members of
Star who feel that THAI should be giving preference to its own
partners.

"If Oneworld buys into THAI, it is almost a foregone conclusion
that they will pull THAI out of Star," said Peter Harbison,
managing director of the Centre for Asia-Pacific Aviation in
Sydney.

Mr Lumholdt noted that it goes beyond just the airlines and
impact on the long-standing competition between Bangkok, Hong
Kong and Singapore to be the dominant aviation hub of Asia.

At the moment, the three hubs are pretty clearly divided in the
traffic they serve: Hong Kong's strength is in links with China
and Northeast Asia, Bangkok with Indochina and South/Southeast
Asia, and Singapore with Indonesia, Malaysia and Australasia.

Cathay Pacific is part of Oneworld, while THAI is part of Star.
Singapore Airlines is a de facto, if not yet official member of
Star. For THAI to shift loyalties either way could significantly
alter the geopolitical realities of the regional aviation
industry.

Mr Lumholdt noted that as a hub, Bangkok has emerged as a total
winner during the current economic crisis, leaving Singapore and
Hong Kong well behind. Strong traffic growth has resulted from
record inbound traffic to Thailand, along with very significant
transfer traffic to other markets.

On the other hand, SIA's traditional growth strategy has slowed,
if not stopped completely. He noted that SIA operated out of a
small but highly developed base and home market, and had depended
extensively in the past on fifth- and sixth-freedom traffic
"wherever it was available".

At the moment, Bangkok is the theoretical Asian hub of Star.
However, it is no secret that SIA is due to join Star any day,
having already signed several marketing, cargo and commercial
alliances with other Star airlines.

While the official line is that having both SIA and THAI in Star
will boost the comparative advantage of the alliance, the fact
remains that Singapore's Changi is a world-class airport and a
much better transfer point, while Bangkok's so-called new airport
is years away from opening.

A stake by foreign airlines in THAI could affect several issues,
not least THAI's costs and management. All the main carriers of
both Star and Oneworld have been through painful restructurings
that have radically streamlined their management.

One of the most important challenges will be overcoming THAI's
state enterprise culture. (Bangkok Post 22-Mar-1999)


THAI OIL: PTT tipped to buy 31% stake in Thai Parazylene
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Petroleum Authority of Thailand (PTT) is expected to acquire 31
percent stake in Thai Oil's subsidiary Thai Paraxylene (TPX)
under the condition of Miyazawa plan, according to a source from
PTT.

"PTT must acquire a major ownership in TPX as required by the
Japanese government in case it wants to disburse fund from the
Miyazawa plan," said a source.

Around $24 million of the fund had already been invested in the
TPX project, of which Thai Oil agreed to hold 62 percent, leaving
38 percent to Mitsubishi. However, due to Thai Oil's financial
difficulty, it couldn't proceed with its plan and managed to hold
only 20 percent stake in TPX.

"Thai Oil will no longer invest in TPX as it is in the middle of
its US$1.9 billion debt restructuring which is expected to be
completed in June this year," a source noted.

Thai Oil will only hold 20 percent stake in TPX, while PTT is
expected to hold 31 percent.

"It is expected that PTT will have to put in $120 million from
total project value of US$230 million, said a source.

The remaining 49 percent stake is being discussed on the number
of Japanese shareholders and the appropriate ratio among Japanese
partners.

At present Mitsubishi holds 38 percent stake in TPX but there may
be a change in shareholders' structure. Another Japanese firm,
Itochu is also interested to buy 20 percent stake in TPX.

Likewise, Marubeni also eyes to take part in TPX operation.

US-based Chevron Chemical, which earlier expressed interest in
acquiring equity of TPX, has ceased negotiations with PTT.

PTT, meanwhile, is planning to allocate partial of its total $350
million yen-dominated bond to help solving financial difficulty
of Thai Oil.

PTT holds 49 percent stake in Thai Oil, an operator of Thailand's
largest refinery with the capacity of 220,000 barrels per day.
(Business Day [Thailand] 22-Mar-1999)


UNITED COMMUNICATIONS: Win-win and no haircuts in Ucom reform
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Warburg, Dillon Read executive directors discuss with K I Woo the
intricacies of the recent US$573-million debt restructuring.

Two investment bankers who help put together the recent US$573
million restructuring deal for United Communication Industry
(Ucom) have exploded the myth that successful debt restructuring
efforts can only succeed with financial institutions taking
massive "haircuts".

Ucom's US$573 million restructuring deal didn't require its 28
foreign bankers, euro-convertible bond holders and baht
bondholders to reduce loan principals' owed.

Warburg executive director Chartiwudh Tanchanpong said the Ucom
debt restructuring's success hinged on Warburg and co-advisers
Lehman Bros' ability to develop a deal where everyone ended up in
a win-win situation.

"In the Ucom case, the three distinct class of lenders as well as
several groups of equity holders, including the company's
founders and current management team headed by CEO Boonchai
Bencharongkul had to be convinced that the restructuring plan
would be good each one of them," he said.

Of the US$573 million owing, the critical financial obstacle
facing Ucom was the US$208 million tranche owed to more than 28
commercial banks.

Because of the baht's devaluation, Ucom's bank loan covenants
which prohibited its debt-equity ratio from exceeding a certain
level were automatically breached.

At the time of the debt restructuring, Ucom's debt equity ratio
was 4.7 to 1. After the debt restructuring, it was reduced to 1.9
to 1.

Another weak financial element was that half of Ucom's total debt
owing was maturing and payable in the next two years and the
entire US$573 million was due in 2001.

At the heart of the Ucom restructuring plan was getting some of
the public debt holders to voluntarily convert to Ucom equity,
reducing the debt equity ratio to a more acceptable level.

The deal also succeeded because public debt holders, who held
US$120 million of Ucom debt, swapped their Ucom shares. Enough
parties in the two groups were convinced swapping was a win-win
situation. (The Nation 22-Mar-1999)


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