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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      

      Friday, March 26, 1999, Vol. 2, No. 60

                    Headlines


* C H I N A   &   H O N G   K O N G *

GOLD JOINT LIMITED: Winding-up petition
GUANGXIN ENTERPRISES: Guangxin creditors lose out
GUANGZHOU FINANCE: Beijing warns banks on liquidation move
GUANGZHOU INTERNATIONAL: Beijing warns banks on liquidation move
KONG TAI INTERNATIONAL: Kong Tai, chairman sued over $5m loan

SHINY NOMINEES LIMITED: Winding-up petition
SING TAO HOLDINGS: Spurned Aw party not done


* J A P A N *

FUJI PHOTO: Stock hit by warning
FUJITA: President quits amid appeal over debt
INTERNATIONAL DIGITAL COMM: C&W in talks to acquire IDC
NISSAN MOTOR: Linkup with Renault spurs suppliers to merge
NISSAN MOTOR: Renault, Nissan deal near

NISSHO IWAI: Sells 50% stake in Nifty
NOMURA SECURITIES: Moody's lowers long-term debt rating


* K O R E A *

SAMSUNG MOTORS: Daewoo and Samsung agree on car deal


* M A L A Y S I A *

RENONG BHD: Renong restructuring overshadows results
SOUTHERN STEEL: NatSteel unit posts RM158m loss
UTAMA GROUP: Huge provisions push UBG into the red


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

MONDRAGON INTERNATIONAL: Gov't appeals order to return resort
PHILIPPINE AIRLINES: PAL secures creditor backing
PILIPINO TELEPHONE: Probers confirm Piltel hid financial problems


* S I N G A P O R E *

CITY DEVELOPMENTS: Property giant's profit plunges 70%
INTRACO LTD: Slips into the red with $13.7m loss
PACIFIC CAN: Non-exec chairman steps down
SHANGRI-LA HOTEL: $16m in the red
TRANSPAC INDUSTRIAL: Transpac loss widens sharply to $61.7m


* T H A I L A N D *

NITHIPAT CAPITAL: Charges filed against 14 Nithipat executives
QUALITY HOUSE: QH stocks seen under downward pressure
REGIONAL CONTAINER: RCL debt talks continuing


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

GOLD JOINT LIMITED: Winding-up petition
---------------------------------------
A petition for the winding up of Gold Joint Limited was
presented to the High Court on Jan 15 by Geoquad Company Limited
whose registered office is situate at Room 801-5, 8th Floor, Sino
Industrial Plaza, Kai Cheung Road, Kowloon Bay, Kowloon, and the
said petition is directed to be heard before the court at 11:00
am on  Mar 24, and any creditor or contributory of the said  
company desirous to support or oppose the making of an order on
the said petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition will be
furnished to any creditor or contributory of the said company
requiring the same by the Solicitors for the Petitioner, Rowland
Chow Chan & Co. 15th Floor, Wing Lung Bank Building, No. 45 Des
Voeux Road Central, Hong Kong, on payment of the regulated
charges for the same.


GUANGXIN ENTERPRISES: Guangxin creditors lose out
-------------------------------------------------
According to the South China Morning Post, liquidators issued
their first report on the two subsidiaries of bankrupt Guangdong
International Trust & Investment (Gitic) -- Guangxin Enterprises
and Gitic Hong Kong (Holdings) -- since they were placed under
voluntary liquidation in October.

KPMG partners said Guangxin would have a recovery rate of about
5.8 per cent and Gitic Hong Kong about 54.6 per cent.

The liqudators' report, issued early this month, showed Gitic
Hong Kong had an estimated realisable value of $2.12 billion,
book assets of $3.6 billion, while Guangxin Enterprises a
realisable value of about $246 million and book assets of $3.9
billion.

About 85 per cent of Guangxin's assets had nil or uncertain
returns.

The liquidators said the outcome of investigations into the legal
titles to two of Guangxin's properties with a book value of $175
million would have a significant effect on the recovery rate.

The issue of ownership also was raised on Guangxin's mainland
investments, totalling $464 million.

The Hong Kong Standard reported on the part on Guangxin. The
report said that creditors were surprised at the number of
discrepancies between a statement of affairs drafted by Guangxin
directors as of October 12, and what KPMG and Jones Lang Wootton
(JLW) found. JLW was appointed to assist KPMG in evaluating
Guangxin's properties.

The report also showed that Guangxin directors estimated a
development site in Hong Kong's Sai Kung district would realise
$120 million from a book value of $424 million. JLW's evaluation
indicated Guangxin's estimate to have been overstated by some $80
million. Legal title to this site, and one in Macau with a book
value of $175 million was being probed.

The report said a company called Life Circle and a Malaysian
forest exploration and timber manufacturing and trading project
owed a total of $407 million to Guangxin.

KPMG said the outcome of these investigations will have a
significant effect on the estimated recovery rate. Demand letters
were sent to Guangxin's 28 debtors, which owed a total of $424
million in loans and accounts receivable. Of this, KPMG only
expected to fully recover $4 million, while $39 million had no
recovery and $315 million was under negotiation with full
recovery deemed unlikely.

KPMG said there were still several investigations to be
undertaken but no details on these could be disclosed yet.


GUANGZHOU FINANCE: Beijing warns banks on liquidation move
----------------------------------------------------------
According to the Hong Kong Standard, deputy director of the
Guangzhou Development Planning Commission, was quoted by the
Xinhua News Agency as warning in Beijing that the bid of
Guangzhou Finance creditors to have the company declared bankrupt
could endanger Gzitic, its parent company on the mainland. He
said the liquidation of Guangzhou Finance could severely
undermine Guangzhou city government's plan to restructure
Gzitic.

A representative of one of the creditor banks in Hong Kong said
the group would first want to see a restructuring proposal for
Gzitic for their consideration before they would consider
withdrawing their liquidation petition.

Gzitic said it had total liabilities of some US$2.4 billion, but
it has so far not announced the value of its assets. It is
understood that the amount includes US$740 million in foreign
liabilities. Its statement on its liabilities also has to be
validated, raising prospects that the level might be higher than
what has so far been disclosed.

Creditor bankers who went to Guangzhou last week were
disappointed by the failure of city government officials to offer
concrete financial assistance to Gzitic in the form of a
restructuring plan. It may not be until July or August when a
detailed restructuring plan for Gzitic is presented.


GUANGZHOU INTERNATIONAL: Beijing warns banks on liquidation move
----------------------------------------------------------------
According to the Hong Kong Standard, deputy director of the
Guangzhou Development Planning Commission, was quoted by the
Xinhua News Agency as warning in Beijing that the bid of
Guangzhou Finance creditors to have the company declared bankrupt
could endanger Gzitic, its parent company on the mainland. He
said the liquidation of Guangzhou Finance could severely
undermine Guangzhou city government's plan to restructure
Gzitic.

A representative of one of the creditor banks in Hong Kong said
the group would first want to see a restructuring proposal for
Gzitic for their consideration before they would consider
withdrawing their liquidation petition.

Gzitic said it had total liabilities of some US$2.4 billion, but
it has so far not announced the value of its assets. It is
understood that the amount includes US$740 million in foreign
liabilities. Its statement on its liabilities also has to be
validated, raising prospects that the level might be higher than
what has so far been disclosed.

Creditor bankers who went to Guangzhou last week were
disappointed by the failure of city government officials to offer
concrete financial assistance to Gzitic in the form of a
restructuring plan. It may not be until July or August when a
detailed restructuring plan for Gzitic is presented.


KONG TAI INTERNATIONAL: Kong Tai, chairman sued over $5m loan
-------------------------------------------------------------
According to the Hong Kong Standard, Kong Tai International
Holdings and its chairman wong Wai-chi were sued by Core-Pacific
Yamaichi International (HK) on Monday for the repayment of a $5
million loan. The writ said the defendants breached an agreement
on a loan facility and a supplemental agreement dated August 7,
1998, and November 13, 1998, respectively. The writ said the
figure mentioned was outstanding as of January 7, 1999.


SHINY NOMINEES LIMITED: Winding-up petition
-------------------------------------------
A petition for the winding up of Shiny Nominees Limited was
presented to the High Court on  Mar 2 by Holita Company Limited,
a company duly incorporated in the British Virgin Islands and
having a place of business in Hong Kong at 33rd Floor, Henley
Building, No. 5 Queen's Road Central, Hong Kong, 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 the Solicitors for the Petitioner, Larry
W.M. Chung & Co., 1403, Henley Building, 5 Queen's Road Central,
Hong Kong on payment of the regulated charges for the same.


SING TAO HOLDINGS: Spurned Aw party not done
--------------------------------------------
The group that failed in its bid to take Sally Aw Sian's stake in
Sing Tao Holdings may sue for breach of contract. Sally Aw agreed
Wednesday to sell her 50.02 percent stake in Sing Tao Holdings
Ltd. to a subsidiary of Lazard Asia Ltd. after talks collapsed
with a bidding group led by U.S. financier Sam Zell.

Sing Tao publishes the Chinese-language Sing Tao Daily News as
well as the  English-language Hong Kong Standard.

According to the South China Morning Post, a partner at Richard
Butler, the legal adviser of the Dublin-based funds that was
defeated in the bid for Sally Aw Sian's stake in Sing Tao
Holdings said they would try to talk with Ms Aw's representatives
and put things right but reserve the right to take legal action.

Legal experts said China Enterprise Development Fund (CEDF) and
the Investment Co of China (ICC) could sue Ms Aw for breach of
contract and claim damages.

Lazard is understood to have secured support from Mr Ho Ying-chie
and Ms Aw's bank creditors, who undertook not to sabotage the
deal by taking any action against her.

Sing Tao shares jumped 20 per cent yesterday to $1.20, edging
closer to Lazard's general offer price of $1.25.

According to the Hong Kong Standard, sources said CEDF and ICC
are currently taking a critical look at the sale and purchase
agreements that she signed with them.

Sources familiar with the deal said both firms remain interested
in taking an equity stake in Sing Tao because they regard it as a
good investment.

They believed they had watertight agreements with Ms Aw which
would not allow her to turn to Lazard Asia.


=========
J A P A N  
=========

FUJI PHOTO: Stock hit by warning
--------------------------------
Shares in Fuji Photo Film, Japan's largest manufacturer of
photographic materials, plunged 10.3 percent to Y4,370 yesterday
on news that the company would post lower than expected net
profits.

The Asian economic crisis and currency devaluation in Russian and
Brazil are expected to push consolidated net income down by about
20 percent, said the company.

Net income, previously forecast at Y92bn, could fall as low as
Y70bn for the year ending March 31, according to analysts. Last
year, Fuji Photo reported consolidated net income of Y88.8bn.
(The Financial Times 24-Mar-1999)


FUJITA: President quits amid appeal over debt
---------------------------------------------
The president of Fujita, Kazunori Fujita, announced his
resignation yesterday, amid falling orders and sagging
profitability at the troubled general contractor. Fujita's
difficulties reflect the deep-rooted problems of the construction
industry, hurt by the country's prolonged recession.

Fujita's chairman, Haruhisa Kawasaki, will become the new
president on April 1. Fujita's shares surged yesterday, however,
as the company confirmed it had asked its six main banks to
forgive some Y120bn of debt.

Fujita is appealing to the banks -- Sakura, Tokai, Mitsui Trust,
Sumitomo Trust, Industrial Bank of Japan and the recently
nationalised Nippon Credit Bank -- to forgive a portion of their
loans.

Shares were traded heavily yesterday on media reports that the
bank negotiations had been successful, although the company
denied that yesterday that the talks had been concluded. The move
is the latest in the rush of loan forgiveness requests by general
contractors, and highlights the scale of debt problems dogging
the sector. (The Financial Times 24-Mar-1999)


INTERNATIONAL DIGITAL COMM: C&W in talks to acquire IDC
-------------------------------------------------------
Cable & Wireless PCL is in talks with major shareholders of
International Digital Communications Inc. to acquire their stakes
for about $230 million as a prelude to taking over the company,
said people close to the British carrier.

Although Cable & Wireless hasn't made a formal offer, the
discussions with IDC's big shareholders have reached a serious
stage. But a takeover battle may be brewing: Japan's largest
phone carrier, Nippon Telegraph & Telephone Corp., is also in
discussions to buy IDC, people familiar with the situation said.

Cable & Wireless already holds a 17.6% stake in IDC. It is
offering to buy out the majority shareholders' 45.2% stake. If
Cable & Wireless launches a formal offer for those shares, it is
also required to buy out minority shareholders, who own the
remaining 37.2%. In all, Cable & Wireless could spend more that
50 billion yen to buy the 82.4% of IDC it doesn't already own,
people close to the company said. (The Wall Street Journal
24-Mar-1999)


NISSAN MOTOR: Linkup with Renault spurs suppliers to merge
----------------------------------------------------------
Tow of Nissan Motor co.'s main parts suppliers agreed to merge
operations in a deal that show how Nissan's struggle to
restructure itself is putting pressures on its broader corporate
group, or keiretsu -- pressures that may eventually break up the
group.

The two suppliers, Calsonic corp. and Kansei Corp., said they
plan to merge on April 1, 2000. Nissan owns 28.5% of Kansei and
33.3% of Cosonic. The pact is widely interpreted as a way for
Nissan to strengthen control over the pair. (The Wall Street
Journal 24-Mar-1999)


NISSAN MOTOR: Renault, Nissan deal near
---------------------------------------
Renault chairman Louis Schweitzer will arrive in Japan on
Thursday to sign a deal with Nissan Motor Co. that includes his
company taking a 35 percent stake in the ailing Japanese
carmaker, a news report said.

Schweitzer will sign the $5 billion deal on Saturday afternoon in
Tokyo, after Nissan's board of directors meets here to discuss
Renault's offer, the Nihon Keizai newspaper reported without
citing sources.

Nissan spokesman Masataka Saito refused to comment on the report.
A spokeswoman for Renault would not confirm if Schweitzer was
coming to Tokyo.

Renault made a formal offer to Nissan to buy a stake on March 16,
after talks between Japan's second-largest automaker and
Germany's DaimlerChrysler AG broke down. (AP Online 24-Mar-1999)


NISSHO IWAI: Sells 50% stake in Nifty
-------------------------------------
Nissho Iwai, the trading company, is selling its 50 percent stake
in Nifty, the online services company and internet provider, to
Fujitsu, to cover part of its extraordinary losses, reduce assets
and put its financial house in order.

Fujitsu, which already owns 50 percent of Nifty, is buying out
Nissho Iwai's stake for Y26bn, giving Nissho Iwai a profit of
Y25.5bn. Nifty, which runs Nifty Serve, Japan's largest
comprehensive online service provider with 2.69m subscribers,
will become a wholly owned subsidiary of Fujitsu.

The sale of Nifty follows a decision by the hard-pressed trading
company to sell its Osaka headquarters to a consortium of real
estate companies for Y25bn.

Nissho Iwai, which is expected to post a group net loss of
Y44.5bn in the year to March, after an extraordinary loss of
Y160bn stemming from its financial subsidiary, is under pressure
to cover those losses through asset sales.

By the end of March, it expects to be able to raise Y65.5bn.

The trading company, whose bonds have been downgraded to
speculative grade by Moody's, has an ambitious plan to reduce
assets by Y1,600bn and reduce interest-bearing debt by Y660bn by
fiscal 2001. (The Financial Times 24-Mar-1999)


NOMURA SECURITIES: Moody's lowers long-term debt rating
-------------------------------------------------------
Moody's Investors Service today lowered the long-term debt
ratings of Nomura Securities Co., Ltd. to Baa2 from Baa1, and
left the new ratings on review for possible further downgrade. At
the same time, Moody's placed Nomura's current Prime-2 short-term
ratings on review for possible downgrade.

Moody's said that its rating actions resulted mainly from
"concerns over the growing pressure on Nomura's capital adequacy
and from the deterioration in the firm's earnings prospects, both
in the domestic markets and overseas."

The slow pace of Nomura's restructuring and strategic
repositioning could leave the firm increasingly vulnerable to
domestic and foreign competitors and to adverse market
conditions. These factors also contributed to the rating actions,
the agency said. (FWN Financial 24-Mar-1999)


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

SAMSUNG MOTORS: Daewoo and Samsung agree on car deal
----------------------------------------------------
Korean industrial groups Daewoo and Samsung yesterday said they
had reached agreement on the takeover of Samsung Motors by Daewoo
Motors following emergency talks by their chairmen to rescue the
deal.

The groups had earlier agreed to swap Samsung's fledgling
carmaker for Daewoo's consumer electronics company as part of a
government-sponsored restructuring. The takeover had been
threatened by Samsung's demand that Daewoo continue production of
its only passenger car model, the SM5, to protect jobs for sub-
contractors.

Samsung Motors began production of the SM5, which is based on the
Nissan Maxima, only a year ago with an output of 80,000 cars.

Daewoo agreed to produce at least 30,000 Samsung cars annually
over the next tow years, although the SM5 competes against a
similar Daewoo model. Samsung will be responsible for half of the
car sales, provide cash compensation to Daewoo for any unsold
cars and make loans to Daewoo to help support SM5 production.

Daewoo also promised to place orders with Samsung subcontractors
for parts for 50,000 cars annually over the next two years.
Negotiations on pricing for the deal are scheduled to be
concluded by April 30.

Samsung invested nearly $4bn in the SM5 project, including a new
plant in Pusan that will be handed over to Daewoo by the end of
the month. Daewoo, which makes 1m vehicles in Korea, is expected
to produce its own models at the Pusan plant.

Analysts were sceptical about yesterday's agreement since many
Samsung subcontractors have already gone bankrupt and Samsung's
car sales organisation has been weakened by resignations since
the takeover deal was announced in December. (The Financial Times
24-Mar-1999)


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

RENONG BHD: Renong restructuring overshadows results
----------------------------------------------------
Malaysia's largest conglomerate Renong Bhd is expected to
announce six-month financial results this week, but the numbers
are overshadowed by its massive debt restructuring plan.

"There's nothing much one can do with the company until its
balance sheet is cleaned up," said Phuah Lee Kerk, head of
research at Jupiter Securities, reflecting the views of other
analysts.

Barra's The Estimate Directory has a consensus estimate at a net
loss of 340.4 million ringgit ($90 million) for the year to June
30, 1999 for Renong. For the six months to end-December 1997,
Renong reported a net loss of 331.28 million ringgit.

"People are just waiting to see the debt restructuring plan go
through before they even look at the earnings of Renong," said a
dealer at a local brokerage.

Renong officials could not be reached to comment on when the six-
month results would be released, but analysts said they expect
them some time this week. (Reuters and Business Day [Thailand]
25-Mar-1999)


SOUTHERN STEEL: NatSteel unit posts RM158m loss
-----------------------------------------------
Poorer demand, thinner margins and higher financing charges
forced Malaysia's Southern Steel Bhd, a 27 per cent associate of
NatSteel Ltd, to sink into the red for the first time in 10
years.

Southern Steel reported a net loss of 158 million Malaysian
ringgit (S$71 million) for the year ended Dec 31, compared with a
net profit of RM41.8 million in the previous year. Net loss per
share was 55.9 sen, against earnings per share of 14.8 sen in
1997.

Although the market had anticipated losses, the results were
worse than expected. According to Barra's The Estimate Directory,
the consensus was for a net loss of RM126 million. (Singapore
Business Times 25-Mar-1999)


UTAMA GROUP: Huge provisions push UBG into the red
--------------------------------------------------
Utama Banking Group Bhd (UBG) has recorded an after tax loss of
RM490mil for the financial year ended Dec 31, 1998 after
providing for specific provisions of RM577mil.

UBG's general provisions to total loans increased to 2.34% last
year from 1.55% previously.

UBG is the parent company of Bank Utama (M) Bhd, which has 34
branches nationwide. (The Star Online 25-Mar-1999)


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

MONDRAGON INTERNATIONAL: Gov't appeals order to return resort
-------------------------------------------------------------
According to the South China Morning Post, the Philippine
government will ask a court to reconsider an order that the
state-owned company Clark Development Corp return a seized golf-
and-casino resort -- Mimosa Leisure Estate -- to Mondragon
International Philippines.

Clark Development Corp said it would not surrender Mimosa Leisure
Estate during the appeal process.

Mimosa was seized in December upon Mondragon's failure to pay 465
million pesos in rent and to fulfil other contractual
obligations. The seizure deprived Mondragon of its main source of
income, prompting the company to suspend payments on five billion
pesos in debt.

A regional trial court on Monday issued an injunction against
Clark Development ordering it to cease and desist from operating
the facility north of Manila.

Clark Development president Rufo Colayco said the injunction was
of a dubious nature because it came only three days after the
Court of Appeals set aside all recent trial court rulings on the
Mimosa dispute.

Mr Colayco said he expected four banks with the greatest exposure
to Mondragon, and who also have the strongest collateral
position, to begin foreclosure proceedings soon against Mondragon
unless the company could find new investors willing to invest in
Mimosa. The four banks are United Coconut Planters Bank, Far East
Bank and Trust, Asian Banking Corp and First Metro Investment, a
unit of Metropolitan Bank and Trust.


PHILIPPINE AIRLINES: PAL secures creditor backing
-------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, PAL has won support of  17 European banks, all
partially secured creditors, for its amended  rehabilitation
plan. PAL said Credit Agricole Indosuez, writing on behalf
of the French, German and British banks, told the airline the
rehabilitation plan was acceptable, subject to certain
conditions.

According to the Hong Kong Standard, PAL said the support was
crucial because the banks financed the acquisition of 12 wide-
body Airbus planes which form the backbone of PAL's regional and
international fleet.


PILIPINO TELEPHONE: Probers confirm Piltel hid financial problems
-----------------------------------------------------------------
Debt-ridden Pilipino Telephone Corp. (Piltel) may have violated
disclosure rules, a Securities and Exchange official said in a
report to chairman Perfecto Yasay.

If the SEC found a company negligent in revealing details about
its finances, it can suspend the trading of its shares. The SEC
has formed a panel to investigate Piltel's financial condition
and compliance with government's disclosure requirements.

"As shown in the enclosed quarterly reports, management has
failed to disclose the foregoing material information," Linda
Daoang, head of the SEC's money market operations department,
said in a report released to reporters yesterday.

"The foregoing should be considered by the PED (or the SEC's
prosecution and enforcement department) in its ongoing
investigation of Piltel for possible violations of the RSA
(Revised Securities Act)," the report said.

Piltel, the cellular phone unit of telecom giant Philippine Long
Distance Telephone Co. (PLDT), has debts worth P34.9 billion. It
posted a net loss of P4.12 in 1998 from the year-ago loss of
P620.83 million.

"Even with the show cause letters that were issued after news
about Piltel's debt burden came out in the papers, Piltel has not
submitted any report discussing the magnitude and effects of the
accumulated debt on its financial condition and results of
operation, the effects on the company's short-term and long-term
liquidity, the restructuring plan with the creditors and the
sources of liquidity for debt payments," the report said.

"The problems confronting Piltel could not have happened
overnight. There must have been trends and events known to
management that could have led to the accumulation of debt, the
need to restructure debt, and the recorded loss of P4.1 billion
for the year 1998," it said.

"Management should have included a discussion of these in the
company's quarterly reports for the first three quarters of
1998."Piltel has denied allegations that it failed to comply with
disclosure requirements for publicly-listed companies. The firm
is currently in talks with creditors to restructure its debt.

Yasay earlier said the group of Antonio "Tonyboy" Cojuangco,
PLDT's former controlling stockholder, may be held criminally
liable for failing to disclose Piltel's financial woes.

Cojuangco was PLDT president, while brother Ramon served as
Piltel president until their group sold out to the First Pacific
group for $750 million. First Pacific is a conglomerate
controlled by Soedono Salim, a business associate of ousted
Indonesian strongman Suharto's family.

Meanwhile, credit rating firm Standard & Poor's Corp. announced
it will downgrade its rating for PLDT unless the telephone firm
sells new shares to pare its debts.

S&P said PLDT remains on its "CreditWatch" list of companies that
could have their ratings cut in the months ahead. PLDT's foreign-
currency debt is rated of "BB+," or a step below investment
grade.

"Standard & Poor's views significant fresh equity injection that
is used to reduce debt in the near term as crucial for PLDT to
maintain its credit rating at the current level," the New York
rating company said.

A credit-rating downgrade would boost borrowing costs for PLDT,
one of the nation's biggest issuers of bonds overseas.

First Pacific Co. earlier outlined plans to sell $500 million of
new stock this year. It has also begun negotiations with Japan's
Nippon Telegraph & Telephone Corp., and other phone companies, to
bring them in as partners to provide capital and technical
expertise.

S&P said a collapse in those talks, or difficulties in working
out a solution to the debt woes of Piltel would adversely affect
the company. PLDT has $400 million of debts maturing within a
year.

"A lapse in strategic-partner negotiations, delays in raising new
equity, or a deterioration in Piltel's condition, will trigger a
downgrade of PLDT's rating," S&P said.

S&P also said it cut the rating of PLDT's preferred stock to
"B+", or three notches below its bonds, because of the preferred
stocks' "subordination and the option of the issuer to defer
dividend payments." (Reuters, Bloomberg and The Manila Times 25-
Mar-1999)


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

CITY DEVELOPMENTS: Property giant's profit plunges 70%
------------------------------------------------------
Singapore property giant City Developments Ltd has reported a
worse-than-expected 69.8% plunge in group net profit to $123.7mil
for last year.

The fall was on the back of lower turnover and provisions
totalling S$194mil made by the Singapore-listed company to
mitigate the sharp drop in property prices in the island state.

Analysts had expected net earnings of more than S$230mil.

Nearly all top Singapore property companies had announced losses
for last year when property prices in the republic dived more
than 33%.

City Developments said in a statement Tuesday that group turnover
fell 17.3% to S$2.04bil.

City Developments controls Hong Kong-listed CDL Hotels
International, which owns or has stakes in 66 hotels in 12
countries, and whose subsidiaries include London-listed
Millennium and Copthorne Hotels. (Agence France-Presse and The
Star Online 25-Mar-1999)


INTRACO LTD: Slips into the red with $13.7m loss
------------------------------------------------
Trading company Intraco Ltd has sunk into the red with a       
group net loss of $13.7 million for the year ended Dec 31,       
against a net profit of $101,000 in 1997.

Badly hit by two major loss-makers -- car agencies and
telecommunications -- the government-linked company yesterday
reported what is likely to be its worst set of corporate results
ever.

The bleeding at the bottom line -- $46.2 million compared to just
$3.2 million in 1997 -- was largely on account of extraordinary
losses which totalled $33.9 million at the level attributable to
shareholders. (Singapore Business Times 25-Mar-1999)


PACIFIC CAN: Non-exec chairman steps down
-----------------------------------------
Just 10 days after its auditor questioned Pacific Can      
Investment's viability as a going concern, the company      
yesterday announced top-level changes and added that some
shareholders want several board members removed.

Pac Can said Low Hua Kin has ceased to be the company's non-
executive chairman and company secretary George Tan has resigned.

His replacement was not named.

Mr Low will also ceased to be chairman of the executive
remuneration committee and a member of the audit committee.
However, he remains a director. Earlier this month, he stepped
down as chairman and a member of the executive committee.

The directors are looking at an EGM after the annual general
meeting on March 30. An announcement will be made later.

Pac Can registered a net loss of $8.3 million for the year ended
Sept 30.

Its external auditors have raised doubts about its ability to
continue as a going concern for a reasonable period of time.
Deloitte & Touche said that based on current cashflow
projections, the company would not have enough cash to repay
$20.6 million in loan stocks due on April 30.

To deal with the loan stock redemption, the directors proposed a
capital reduction exercise followed by a rights issue. Deloitte
and Touche said that not only must the exercise be successful, it
must be completed in time for the redemption. There is no
guarantee the management will achieve this, it said.

Among the main current liabilities in Pac Can's balance sheets
are loan stocks of $20 million, bank loans of $3 million, and
payables of $16 million. (Singapore Business Times 25-Mar-1999)


SHANGRI-LA HOTEL: $16m in the red
---------------------------------
Shangri-La Hotel was expected to slip into the red and it did,      
but the net loss of $16 million for 1998 it reported yesterday      
was much worse than what analysts had anticipated.

The company's operating profit of $9.7 million was practically
wiped out just by interest on borrowings. Other costs and
associated companies' losses thus plunged the company deep into
the red, against a net profit $17.9 million in 1997.

The bottomline was an even more massive $38.3 million loss, no
thanks to $14 million in losses from the sale of quoted equities
and $8 million in provisions for a drop in the value of long-term
investments. (Singapore Business Times 25-Mar-1999)


TRANSPAC INDUSTRIAL: Transpac loss widens sharply to $61.7m
-----------------------------------------------------------
Venture capital company Transpac Industrial Holdings has sunk
deeper into the red, with group net loss widening by 72.5 per
cent to $61.7 million for 1998.

The loss includes an additional provision of $13.5 million in the
second half for investments in Singapore, China, Hongkong and
Taiwan. Loss per share rose to 154.36 cents from 89.5 cents while
net tangible assets per share fell to $2.58 from $4.13.
(Singapore Business Times 25-Mar-1999)


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

NITHIPAT CAPITAL: Charges filed against 14 Nithipat executives
--------------------------------------------------------------
The Bank of Thailand (BOT) has filed a complaint with the Police
Department against 14 executives of Nithipat Capital, one of the
56 shut down finance companies, according to BOT Assistant
Governor Ratthakorn Nimwatana.

The 14 executives are accused of misconducts for having "approved
loans to ten companies without considering their ability to pay,
as well as accepting insufficient collateral," the assistant
governor said.

"Their actions were taken without concern for the company's
interest, since they extended the loans although they were aware
the companies were incurring losses for several years,"
Ratthakorn charged.

He said the loans were made between March 12 to July 8, 1997.

Ratthakorn said the damage to Nithipat Capital, arising from the
executives' misconduct, amounted to 4.36 billion baht. (Business
Day [Thailand] 25-Mar-1999)


QUALITY HOUSE: QH stocks seen under downward pressure
------------------------------------------------------
Analysts recommended a "sell" on Quality House (QH) stocks as its
operation could continue to show losses, though it has turned to
use several accounting strategies to clean up its balance sheet
at the least capital injection, analysts said.

"It is possible that QH would further decline because of its poor
outlook," said an analyst at a local brokerage firm.

QH on Tuesday announced an increase of its capital through an
issuance of 219 million new shares to its wholly-owned subsidiary
QH International at a price of one stang each. Total proceeds are
2.19 million baht only. Later, it will write down its capital
later to the same level at 2.2 billion baht, writing off those
new shares sold to QH International.

In accounting terms, QH's accumulated losses consequently will
fall to 1.8 billion baht from 4 billion baht now, while its
shareholders' equity will be increased by 2.19 million baht to
1.402 billion baht and the total loss from the write-down effect
will be attributed to QH International. (Business Day [Thailand]
25-Mar-1999)


REGIONAL CONTAINER: RCL debt talks continuing
---------------------------------------------
Regional Container Lines, Thailand's largest container feeder
operator, says it expects to conclude negotiations with its
Singaporean creditors this month on the rescheduling of debt
repayments.

President Sumate Tanthuwanit said RCL was negotiating with two
Singaporean banks, Keppel Tat Lee and Development Bank of
Singapore, to reschedule a total of US$54.74 million in loan
repayments from next year to between three and five years.

RCL owed Keppel $27.5 million for the purchase of its office
building in Singapore in 1997. The remaining $27.24 million is
owed to DBS for two vessels bought in 1994. The two loans are due
for repayments in 2000.

Mr Sumate said RCL needed to reschedule the loans to avoid a
situation in which its repayments would exceed its earnings.
(Bangkok Post 25-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

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