/raid1/www/Hosts/bankrupt/TCRAP_Public/990402.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      

       Friday, April 2, 1999, Vol. 2, No. 65

                  Headlines

* C H I N A   &   H O N G   K O N G *

BOGO INTERNATIONAL LIMITED: Winding-up order
EASTMAN TIME LIMITED: Winding-up petition
GUANGDONG INVESTMENT: Bank Stands Firm on HK$45 Million GDI Loan
GUANGDONG INVESTMENT: GDI may pay off Japanese bank
GUANGNAN (HOLDINGS): Deloitte defends job in Guangnan audit

OSCAR FURNITURE MANUFACTURERS LIMITED: Winding-up order
PEREGRINE GROUP: PwC Rebuked for Conflict with BNP
PROFIT STAR INDUSTRIES LIMITED: Notice of final meeting
SMI CHINA LIMITED: Notice of meeting of creditors
TAI WAH TELEVISION INDUSTRIES: Winding-up petition

YUE XIU: Schedule set for asset injections


* J A P A N *

FUJITA CORP.: All But Two Banks Agree on Debt Forgiveness
LONG TERM: Owing 510 Billion Yen, NED Unit Files for Bankruptcy
LONG TERM: FRC to protect Banks' subordinated loans
MISTUBISHI ELECTRIC: Restructuring Calls for 14,500 Job Cuts
NAKAYAMA STEEL: Files for Court Protection in Osaka

NISSAN DIESEL: Nissan Diesel to take Renault executive
                           
SOGO CO.: Large Projected Losses; Workforce Reductions Disclosed


* K O R E A *

ANAM SEMICONDUCTIR: Amkor Announces Acceptance of Workout Deal
DAEWOO METAL: Reportedly May Liquidate
DONGGUK ELECTRONICS: Wavers On Liquidation
HANGUK DEVELOPMENT: Leasing Company Becomes Workout Target
KOOKMIN LIFE: Seoul in talks over insurer sale

SHINDONGBANG: Fate Rides on Results of Creditors' Meeting


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

PHILIPPINE AIRLINES: PAL's Owner Wanted To Sack Chief Advisor
PHILIPPINE AIRLINES: SEC to meet with local creditors next week


* S I N G A P O R E *

IPC CORP.: Finalizes Debt Restructuring
IPC CORP.: Initiates Legal Process to Collect its Accounts
NEPTUNE ORIENT: Hurt by debt load


* T H A I L A N D *

BANGKOK BANK: BBC debtors given relief
KASET THAI: Suspect offers to nail Wansley masterminds
NAKORNTHON BANK: Nakornthon finalising share placement
RAJADAMRI HOTEL: Joint Regent bid stalls Heinecke


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

BOGO INTERNATIONAL LIMITED: Winding-up order
--------------------------------------------
A winding-up order was issued for Bogo International Limited on
March 24, 1999. The date of presentation of petition was Jan 14.
Registered Office:  Unit 7, 10/F., Fu Hang Industrial Building,
No. 1 Hok Yuen Street East, Hunghom, Kowloon but the registered
office as appears on the company search record is Unit 7, 10/F.,
East Fu Hang Industrial Building, No. 1 Hok Yuen Street, Hunghom,
Kowloon. Official Receiver & Provisional Liquidator: T.E. Berry.


EASTMAN TIME LIMITED: Winding-up petition
-----------------------------------------
A petition for the winding up of Eastman Time Limited was
presented to the High Court on Mar 12 by Shea Sze Man, Karen of  
Flat G, 30th Floor, Block 4, Beverly Garden, Tseung Kwan O,
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.


GUANGDONG INVESTMENT: Bank Stands Firm on HK$45 Million GDI Loan
----------------------------------------------------------------
Guangdong Investment (GDI) and Bank of Tokyo-Mitsubishi have
failed to settle differences over outstanding loans amounting to
more than HK$45 million.  Representatives of both sides met
earlier this week after the bank filed an originating summons,
seeking a court order to take possession of property held by a
GDI subsidiary.  The summons, the South China Morning Post
suggests, threatens to derail or disrupt plans to restructure GDI
and its ultimate parent, Guangdong Enterprises (Holdings).  
Sources told the Post that Bank of Tokyo was unwilling to
withdraw the litigation until it received an offer deemed
satisfactory by its headquarters in Japan.  Officials of GDI and
its financial advisers would probably meet the bank again early
next month, they said.  Bank of Tokyo filed the summons after GDI
defaulted on loan repayments.  It seeks possession of six storeys
in the Guangdong Tours Centre in Causeway Bay, valued at about
HK$120 million.  

GDI, advised by ICEA Capital, is carrying out a restructuring
plan with the help of accountants KPMG. It reached a standstill
agreement with creditor banks early this month.  Officials of
KPMG, ICEA, GDI and Guangdong (HK) Tours attended yesterday's  
meeting to clarify the situation on both sides. GDI and its
financial advisers are expected to meet all secured creditors
early next month.  There are concerns, the Post notes, that Bank
of Tokyo's move will trigger similar action by other secured
creditor banks.  Sources told the Post that a Schroders-led
syndicate was seeking to have a US$90 million loan excluded from
GDI's standstill agreement.


GUANGDONG INVESTMENT: GDI may pay off Japanese bank
---------------------------------------------------
The Hong Kong Standard reports that Guangdong Investment is
considering paying off debts owed to Bank of Tokyo-Mitsubishi to
proceed with a restructuring of its multi-billion-dollar debts.  
This is one of the various options that GDI and its financial
adviser, ICEA Capital, intend to present to Bank of Tokyo-
Mitsubishi to persuade it to withdraw a lawsuit filed last week
against Guangdong (HK) Tours.  The fear is that the move might
encourage a general calling in of maturing loans of GDI and GDE
and their subsidiaries and would spoil attempts to restructure
the huge debts of GDI and GDE.

ICEA Capital chief executive Meocre Li told the Standard that
theoretically this is possible if the steering committee of all
creditor banks agrees and if this move won't damage the position
of other creditor banks.  Mr Li said the $45 million sought by
the Japanese bank is a small amount compared to GDI's total
liabilities of some $8 billion and it is not unusual in
restructuring exercises to find some small banks with small
exposures in a financially stricken company to ask for repayment
ahead of other banks. He said there had been instances of big
banks buying the small banks' exposure in order for the
restructuring to proceed.


GUANGNAN (HOLDINGS): Deloitte defends job in Guangnan audit
-----------------------------------------------------------
Deloitte Touche Tohmatsu, the South China Morning Post reports,
defends its performance in auditing the accounts of insolvent
Guangnan (Holdings).  Amid market rumors that Deloitte had
refused to resign as Guangnan's statutory auditor for last year,
Deloitte said it had not found any evidence that Guangnan's
financial statements for 1997 were in error.  Deloitte said in a
statement it was the duly appointed statutory auditor for
Guangnan.  This could lead to the precedent-setting situation of
Guangnan having two audit reports with two different sets of
figures for last year.  Accountants have watched the development
of the Guangnan case with amazement, the Post relates.


OSCAR FURNITURE MANUFACTURERS LIMITED: Winding-up order
-------------------------------------------------------
A winding-up order was isssued for Oscar Furniture Manufacturers
Limited on March 24, 1999. The date of presentation of the
petition was January 11, 1999. Registered Office:  7th Floor,
Sunward Commercial Building, 27 Fuk Wah Street, Kowloon. Official
Receiver & Provisional Liquidator: T.E. Berry.


PEREGRINE GROUP: PwC Rebuked for Conflict with BNP
--------------------------------------------------
The Hong Kong Society for Accountants reprimanded
PricewaterhouseCoopers for failing to disclose its audit
relationship with BNP Prime East Securities while handling the
sale of a key asset of Peregrine to BNP, reports the South China
Morning Post.  The relationship was not declared until well after
a court had been asked to sanction the deal.  Mr Justice Rogers
reluctantly sanctioned the deal, which saw BNP purchase
Peregrine's Greater China Equities Division run by Peregrine
founder Francis Leung Pak-to.

In an agreed statement with the top accounting firm following an
11-month investigation, the society said PricewaterhouseCoopers
accepted that the failure should not have occurred.  The
liquidators, headed by David Hague, undertook not to commit the
same mistake in future.

In a separate move, reported by the Hong Kong Standard, the
government yesterday filed an application to the court for an
order to appoint an inspector to investigate the affairs of
Peregrine Investments Holdings and Peregrine Fixed Income. The
date for the hearing had yet to be fixed. Sources said the former
chief operating officer of Britain's Financial Services
Authority, Richard Farrant, was likely to be hired as the
Peregrine inspector.

Great Eagle Holdings is in talks with the liquidators to acquire
Peregrine's 1.65 per cent stake in CP Group, which owns most of
the space in Citibank Plaza.  Great Eagle this week raised its
stake in CP Group to 84.5 per cent.


PROFIT STAR INDUSTRIES LIMITED: Notice of final meeting
-------------------------------------------------------
The final meeting of the members and the final meeting of the
creditors of Profit Star Industries Limited (in creditors'
voluntary liquidation) will be held on  April 28 at 34th Floor,
The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong will
be held at 10:00 am and 10:30 am respectively for the purpose of
having an account laid before them showing the manner in which
the winding-up has been conducted the property of the company
disposed of, and of hearing any explanation that may be given by
the Liquidator, and also of determining of Special Resolution of
the Company the manner in which the books, accounts and documents
of the Company, and of the Liquidator thereof, shall be disposed
of. Joint and several liquidators: Man Mo Leung and Sham Sui
Leung.


SMI CHINA LIMITED: Notice of meeting of creditors
-------------------------------------------------
A meeting of creditors of SMI China Limited (in creditors'
voluntary liquidation) will be held on April 13 at 4:00 pm at
Rooms 2201-4, 22/F., Hang Seng North Point Building, 341 King's
Road, North Point, Hong Kong for the purposes mentioned in
Sections 241, 242, 243 and 244 of the Companies Ordinance.

Proxies must be lodged at 4:00 pm at Rooms 2201-4, 22/F., Hang
Seng North Point Building, 341 King's Road, North Point, Hong
Kong not later than 4 pm of the day before the holding of the
meeting or adjourned meeting.


TAI WAH TELEVISION INDUSTRIES: Winding-up petition
--------------------------------------------------
A petition for the winding up of Tai Wah Television Industries
Limited was presented to the High Court on Feb 10 by Panasonic
Shun Hing Industrial Sales (Hong Kong) Co. Ltd., 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 the Solicitors for the Petitioner, Barlow
Lyde & Gilbert at 24th Floor, Nine Queen's Road Central, Hong
Kong on payment of the regulated charges for the same.


YUE XIU: Schedule set for asset injections
------------------------------------------
Yue Xiu Enterprises (Holdings) expects it will take between three
and six months to complete the injection of two property
businesses from its owner, the Guangzhou government.   

Yue Xiu spokesman Sofia Yan Yuk-fung, who is also executive
director of Yue Xiu's listed flagship, Guangzhou Investment,
tells the South China Morning Post that one of the two new
assets, Guangzhou City Construction & Development Holdings, had
an unaudited net profit of 350 million yuan for last year, of
which recurrent income accounted for about 40 per cent.  It
achieved turnover of 1.2 billion yuan last year and has assets of
8.5 billion yuan and bank borrowings of about 200 million yuan.  
Ms Yan said the firm had a land bank of 50 million square feet
for development.

The other asset to be injected, the spokesman tells the Post,
known as Mingquanju, has assets of 1.1 billion yuan and
liabilities of about 240 million yuan, which would also be
injected into Yue Xiu.

Yue Xiu told bankers earlier this week that it would maintain a
positive net worth despite a planned writedown in the value of
its property assets.


=========
J A P A N
=========

FUJITA CORP.: All But Two Banks Agree on Debt Forgiveness
---------------------------------------------------------
Fujita Corp. said Wednesday its request for debt forgiveness for
a total of 120 billion yen has been agreed to by all creditor
banks except for the two banks placed under state control.  On
Tuesday, Sakura Bank and Tokai Bank said they will write off
loans extended to the ailing second-tier general contractor. But
loans were not forgiven by Long-Term Credit Bank of Japan and
Nippon Credit Bank, which have been nationalized temporarily
after becoming insolvent last year.  Fujita will keep its
earnings projection unchanged for the current year ending
Wednesday, as it already includes the forgiven amount as an  
extraordinary profit.  The company forecasts a recurring profit
of 12.4 billion yen and a net loss of 137.3 billion yen for the
year.


LONG TERM: Owing 510 Billion Yen, NED Unit Files for Bankruptcy
---------------------------------------------------------------
NED, a nonbank financial unit of the now state-controlled Long-
Term Credit Bank of Japan, filed Wednesday for liquidation under
court protection from creditors with debts of some 510 billion
yen.  NED, one of LTCB's three nonbank financial affiliates,
operates two business divisions -- a loan division and a venture
capital division for investment in unlisted shares.  In the
process of liquidation, NED will sell its venture capital
division to Yasuda Fire and Marine Insurance Co. and Yasuda
Mutual Life Insurance Co., NED officials said.  The liquidation
should not affect LTCB's balance sheet as it already accounted
for possible bad loans to NED in the first half of the fiscal
year ending Sept. 30, 1998.

Mitsubishi Trust and Banking Corp. said in a statement the
liquidation of NED will not affect its earnings as it has set
aside reserves against its 30 billion yen in loans to NED. NED
was set up in 1972 with the aim of extending loans to venture
businesses and has been faced with mountains of bad loans it
extended to real estate companies in collaboration with LTCB
during the booming bubble economy of the late 1980s. LTCB has
been under state control since last October, when the government  
recognized it as a failed bank with huge bad loans.


LONG TERM: FRC to protect Banks' subordinated loans
---------------------------------------------------
The Financial Reconstruction Commission (FRC) has decided to
allow the government to guarantee a full refunding of
subordinated loans owed by the recently nationalized Long-Term
Credit Bank of Japan (LTCB) and Nippon Credit Bank (NCB), sources
close to the powerful bank-regulatory body tell Kyodo News.  
Creditors' claims on outstanding subordinated loans to these two
banks should  be protected by the government, just as the
government is ready to honor other types of obligations the two
banks owe their creditors if the creditors demand repayment, they
said.

Creditors' claims on subordinated loans are legally treated as
junior to other types of debts -- repayable only after other
debts with a higher claim have been satisfied -- if borrowers are
declared insolvent or if a court grants such borrowers' pleas to
seek rehabilitation under court protection from its creditors.
Since subordinated obligations promise to pay much higher yields
than other debts, investors are willing to enter such
subordinated lending contracts while aware that such obligations
carry lower claims on borrowers' assets at the time of
liquidation.

Both LTCB and NCB have taken out sizable amounts of subordinated
loans from life insurance firms and other investors in their
attempts to replenish their capital accounts, Kyodo relates,
which have been depleted after writing off huge bad loans. After
the two banks were nationalized late last year under the weight
of massive amounts of nonperforming loans, whether the FRC will
approve a proposal to allow the government to provide a full
refunding guarantee for such obligations has been under scrutiny
in financial and political circles. The Bank for International
Settlements (BIS) capital-adequacy rules allow banks to count the
funds they raise through the taking out of subordinated  
obligations as part of their Tier-II capital resources that
complement their Tier-I capital resources such as shareholders'
equity and internal reserves.

During a recent Diet session, a legislator of the main opposition
Democratic Party of Japan (DPJ) urged the government to reject
the refunding-guarantee proposal on the grounds that shareholders
of failed banks would be held responsible for management blunders
of their banks by losing their investments. The legislator told
the government that it should apply identical treatment to
shareholders' investments and investors' claims on subordinated
loans, since BIS rules treat both types of obligations that banks
owe investors as capital resources.  In a meeting held earlier
this week, the five FRC members spurned the DPJ demand, however,
on the grounds that banks placed under temporary state control
are not obliged to immediately repay debts or to liquidate assets
in order to repay liabilities, the FRC sources said. The five
also agreed that BIS rules that are international accounting
rules should be treated separately from the issue of whether the
government is allowed to provide a refunding guarantee, Kyodo
indicated.


MISTUBISHI ELECTRIC: Restructuring Calls for 14,500 Job Cuts
------------------------------------------------------------
Mitsubishi Electric Corp. announced Wednesday a restructuring
program calling for eliminating 14,500 jobs, or about 10%, of the  
combined workforce of the group of companies led by the
electronics titan.  Mitsubishi Electric President Ichiro
Taniguchi told a news conference the group will seek to achieve
the downsizing goal in the three years through the end of fiscal
2001.  Mitsubishi projects cutting 8,400 jobs in Japan 6,100 job
cuts at overseas subsidiaries.  The group's workforce numbered
146,000 as of Wednesday.


NAKAYAMA STEEL: Files for Court Protection in Osaka
---------------------------------------------------
The Nakayama Steel Products Co., which was saddled with 40.1
billion yen in debt, filed for bankruptcy protection at the Osaka
District Court Wednesday, company officials announced.  The
midsize electric furnace steelmaker had been trying to transfer
operations to Kyoei Steel Ltd., a major Osaka-based steelmaker,
with the help of Daiwa Bank (TSE:8319) since late last year, but
could not obtain the consent of all creditors.  Nakayama Steel,
which started business in 1931 and was incorporated in 1950, is a
leading maker of reinforcement steel bars in the Osaka area.


NISSAN DIESEL: Nissan Diesel to take Renault executive
                           
------------------------------------------------------
Nissan Diesel Motor Co., a truck-making subsidiary of Japan's  
debt-laden Nissan Motor Co., said Thursday it will accept an
executive from French automaker Renault SA. The move followed
Saturday's agreement that Renault will invest $5.4 billion in
Nissan Motor to buoy the Japanese automaker, creating the world's
fourth-largest auto partnership.

A Nissan Diesel Motor official, who spoke on condition of
anonymity, declined to say when the French executive will assume
the post or to detail the  new person's responsibilities. In a
restructuring effort, Nissan Diesel will halve the number of its
top managers from the current total of 10, and the French
executive will become one of the remaining five, the official
said.

Under an agreement signed in Tokyo between Renault and Nissan
Motor Co., Renault will take a 36.8 percent stake in Nissan Motor
and a 22.5 percent stake in Nissan Diesel Motor Co. Nissan Diesel
Motor is capitalized at 11.8 billion yen ($99 million) and is  
now 39.8 owned percent by Nissan Motor Co. Nissan Diesel Motor
produced 29,033 trucks and buses in 1998, down 40.8 percent from
a year earlier, the official said. (AP Online 01-Apr-1999)
       


SOGO CO.: Large Projected Losses; Workforce Reductions Disclosed
----------------------------------------------------------------
Major department store operator Sogo Co., forecasting a net loss
of 25.7 billion yen for the year ending Feb. 28, unveiled
Wednesday a restructuring plan that includes a cut of 2,000 jobs,
or 18% of its workforce, by February  2001. The latest earnings
estimate represents a downward revision from its initial  
projection of a net profit of 300 million yen for the last
business year.


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

ANAM SEMICONDUCTIR: Amkor Announces Acceptance of Workout Deal
--------------------------------------------------------------
Amkor Technology, Inc. (Nasdaq: AMSR) announced that Korea's Anam
Semiconductor, Inc. (ASI) has received approval in principle from
its Creditor Banks on the financial restructuring program known
as "Workout". Under the terms of the Workout, outlined more fully
below, ASI would receive significant relief on its bank debt and
financial guarantees. The Workout is subject to definitive
agreements between ASI and the Creditor Banks, which agreements
have not yet been finalized. Additional information pertaining to  
the Workout terms are disclosed in Amkor's Form 10-K, which was
filed today.  

In connection with the Workout, ASI is required to obtain a
commitment from a foreign investor to invest approximately $150
million in ASI equity over a four-year period. Amkor's
Independent Committee of the Board of Directors has approved a
proposal to make a $41 million investment, with an additional
$109 million committed over the next three years, subject to
certain conditions.  

The terms of Amkor's proposed investment are subject to the
approval of ASI's creditor banks, and the commitment to invest in
ASI must be finalized before the Workout agreements will be
implemented. There is no certainty that ASI's Creditor Banks will
agree to the terms Amkor has proposed for this investment.  Once
the Workout is finalized, Amkor intends to move forward with its
proposed acquisition of ASI's K4 semiconductor packaging and test
facility. In connection with Amkor's proposed commitment to
invest, ASI has agreed to reduce the purchase price for K4 to
$582 million from $607 million. Both amounts include the
assumption of $7 million in liabilities.  

As previously announced, the acquisition of K4 is subject to
several conditions, including Amkor obtaining financing on
acceptable terms. It is presently expected that the transaction
will be completed in the second quarter of 1999.  

The Workout contains the following relief provisions, in which
the Creditor Banks agree to:  

     -- Convert, over a four-year period, 250 billion Won  
(approximately  $208 million at today's exchange rates) of ASI
debt into a combination of ASI common stock, non-interest bearing
convertible debt (convertible into ASI common stock) and non-
interest bearing loans.

     -- Defer payment of principal on ordinary loans until Dec.
31, 2003, when a payment schedule will then be determined. No
interest will be paid on these loans through Dec. 31, 1999.

     -- Defer payment of principal under capital leases until
Dec. 31, 1999; payments will be made under a 7-year installment
plan thereafter.

     -- Allow ASI to defer maturity of Won-denominated debentures
for an additional three years.

     -- Reduce the interest rate on Won-denominated bank loans.

     -- Provide a five-year grace period on ASI's subsidiary debt  
guarantees. ASI will not be responsible for interest on these  
obligations over the five-year period.

     -- Provide ASI with a short-term loan of approximately $42
million to be repaid with proceeds from the sale of K4.  

Amkor's President, John Boruch, noted that "As a consequence of
the economic crisis in Korea, ASI entered into a financial
restructuring program with its creditor banks designed to reduce
ASI's debt, provide needed liquidity through extended repayment
terms, and obtain lower interest rates. Now that ASI's creditor
banks have approved a program containing significant relief  
provisions, we believe ASI should emerge from its workout with a
stronger balance sheet and much greater financial stability."  
"We derived approximately 69% of our net revenue in 1998 from
services provided by ASI," said Mr. Boruch. "We recognize that
the operational linkage with ASI is critical to Amkor, and
believe it is in Amkor's clear strategic interest to protect the
integrity of this linkage."  

If Amkor undertakes this investment, and the Creditor Banks
convert ASI debt as contemplated, Amkor's percentage ownership of
ASI would be approximately 21% after the initial investment. Upon
completion of all debt conversions and all equity investments
contemplated by the Workout, Amkor's percentage ownership of ASI
would increase to just under 43% by 2002.  This percentage would
be reduced to just over 34% upon the conversion of all  
convertible debt issued to the Creditor Banks. Amkor would not
have any responsibility for servicing ASI's debt obligations.
(All percentages assume an exchange rate of 1200 Won to one
Dollar and no future sales of ASI stock by Amkor.)  

Amkor Technology, Inc. is the world's largest independent
provider of semiconductor packaging and test services. The
company offers a complete set of semiconductor services including
deep submicron wafer fabrication, wafer probe testing, IC
packaging assembly and design, final testing, burn-in,  
characterization and reliability testing.


DAEWOO METAL: Reportedly May Liquidate
--------------------------------------
According to the Korean language Maeil Kyungje's Business Brief
section, the Daewoo Metal Company may apply for a liquidation
procedure.


DONGGUK ELECTRONICS: Wavers On Liquidation
------------------------------------------
According to the Korean language Maeil Kyungje's Business Brief
section, the Dongguk Electronics Company is "wavering" on the
details of its liquidation.


HANGUK DEVELOPMENT: Leasing Company Becomes Workout Target
----------------------------------------------------------
According to the Korean language Maeil Kyungje, Hanvit Bank
announced that the Hanguk Development Lease Company will go
through a workout program and hold a creditor meeting on April
9th, 1999.  The Hanguk Development Lease has been doing credit
rescheduling with the approval of 80% of their debt and the
delayed payment deadline has ended as of March 31st, 1999.

The workout program is expected to help the company normalize its
operations.  However, the Maeil Kyungje report said that the
company's merchant bank creditors are vehemently opposing the
workout plan because of fears of not being able to recover their
investment.


KOOKMIN LIFE: Seoul in talks over insurer sale
----------------------------------------------
The South Korean government said it was in talks with New York
Life Insurance and another unidentified foreign insurance firm to
sell ailing Kookmin Life Insurance.  Both foreign companies
submitted draft memoranda of understanding to the South Korean
Government, which wants to sell Kookmin as soon as possible to
raise cash to recapitalise Korea's weakened financial system.


SHINDONGBANG: Fate Rides on Results of Creditors' Meeting
---------------------------------------------------------
The fate of Shindongbang, which was recently on the brink of
bankruptcy after its application for new loans was turned down,
is riding on a meeting of its creditors.  Shindongbang has
applied to go on a corporate workout program along with three
subsidiaries, including Haepyo Food Service and Haepyo, a leading
producer of cooking oil.  Whether or not Shindongbang will be
admitted to the workout program remains unclear but it will
certainly have a strong bearing on its future. Should it be
accepted, part of the program calls for the injection of fresh
loans.

There are conflicting views, Korea Times relates, on how
creditors will decide. On one hand, Shindongbang does have a
strong reputation in the Haepyo brand which remains a favorite
among consumers after 33 years of specialization.  In fact,
Hanvit Bank, Shindongbang's leading creditor, reportedly
suggested early last month that it apply to go on the workout
program to regain its financial stability.  On the other hand,
the situation surrounding Shindongbang's application took a turn
for the worse when it became known that it applied one day after
it received 28.5 billion won for a new rights offering.

"Shindongbang's action has the appearance that they tried to
deceive their investors.  It definitely looks as though
Shindongbang held back from applying for the workout until the
rights offering was completed," one analyst told Korea Times.  In
fact, Shindongbang was obligated to notify potential investors
and the Financial Supervisory Commission of such plans when
engaging in the new rights offering. The FSC is now investigating
the case.  Shindongbang, for its part, said seeking to get on the
workout program was a necessary part of surviving its financial
difficulties and that it has to be considered separately from the
rights offering.  Company officials said they were currently
working to return all of the 9.08 billion won from 18,478
investors who bought the new shares in an apparent effort to
avoid further problems.

Shindongbang chairman Shin Myoung-soo, who is an in-law of
disgraced former president Roh Tae-woo, said his company's
current predicament is the result of the creditors' refusal to
extend 35 billion won in new loans and that its chances of
regaining financial stability are very high.

"We have developed a wide range of innovative products, including
washing machines that do not use detergent, and if our short-term
loans are to be deferred under the workout program, there is
every chance that we will be back stronger than ever," Shin was
quoted as saying by one of his aides.

Shindongbang was in the news a couple of years ago for making a
hostile bid for Midopa Department Store, one of the first such
attempts at merger and acquisition in Korea.


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

PHILIPPINE AIRLINES: PAL's Owner Wanted To Sack Chief Advisor
-------------------------------------------------------------
The Asian Wall Street Journal reports that the owner of the
Philippine Airlines (PAL) was so livid over remarks the airline's
chief advisor made at a news conference that he reportedly asked
the executive to leave the company.  The owner, Mr. Lucio Tan,
has no authority to dismiss Mr. Peter Foster, an advisor who with
four other outside executives succeeded in getting creditors to
agree to the airline's restructuring plans.  

Mr. Fostor reportedly made a remark at a news conference in March
that problems that contributed to PAL's troubles included some
isolated instances of corruption.  Mr. Foster also detailed more
widespread flaws, including inadequate budget control.  The
article stated that Mr. Tan has since reversed his decision to
ask Mr. Foster to leave.

The revised restructuring plan spearheaded by Mr. Foster has been
submitted to the Philippine Securities and Exchange Commission
(SEC).  This plan reportedly includes a capital infusion of $200
by June 4, with 40 to 60 percent of these funds coming from
financial institutions.  The SEC is scheduled issue a decision on
its acceptance of the plan in mid-April.  Under this new
restructuring plan, PAL will resume interest payments to secured
creditors, and will reduce the grace period on paying back
secured and partially secured loans from five years.

In January, PAL made a payment of $37.9 million to its major
creditors, which was the first time since last July it has
serviced its more than $2.2 billion debt.  PAL troubles stem from
an unfortunate timing of an fleet modernization program, the
Asian currency crisis, and a 22 day pilot strike in June, 1998.  
The airline actually closed for 13 days last September, but was
reopened after its union backed down on some demands.


PHILIPPINE AIRLINES: SEC to meet with local creditors next week
---------------------------------------------------------------
The Securities and Exchange Commission will meet with the local
creditor-banks of Philippine Airlines next week to discuss the
cash-strapped airline's revised rehabilitation plan.  

"Since time is of the essence, I'll go out of my way to talk to
local creditors to know what they really feel towards PAL's
revised rehabilitation plan and I hope something good comes out
of it," SEC chairman Perfecto Yasay Jr. said.  Yasay said the SEC
will set a meeting with PAL's domestic creditors next week to
know their concerns with respect to the new rehabilitation plan
filed by the flag carrier.  The SEC has earlier given itself
until April 15 this year to come up with its decision whether or
not to approve PAL's revised rehabilitation plan.  It is just
awaiting for the comments of all PAL creditors before they can
act on the plan.

"We will not leave the minority creditors' questions unanswered.
We have to make decisions based on what would be good for the
majority," Yasay said.  

Local creditor banks of PAL include Allied Banking Corp., Banco
de Oro, China Banking Corp., Equitable Banking Corp.,
International Exchange Bank, Philippine National Bank, Rizal
Commercial Banking Corp., Security Bank Corp., Union Bank of the
Philippines and Westmont Bank.  They earlier opposed key
provisions of the plan, including the extension of loans, waiver
or condonation of interest on loans, which are still present in
the new rehabilitation plan.  They objected to the proposed five-
year grace period on principal payments because it violates
Section 79 of the General Banking Act. Any grace period on
principal payments should not exceed three years, the local banks
said.  

In another development, PNB yesterday filed with the SEC its
comments to PAL's amended rehabilitation plan. It objected to a
plan which requires partially secured creditors to waive all
interest incurred after the filing of PAL's petition for
suspension of payments with the SEC, as well as default interest.
"Any waiver as suggested in the plan would substantially impair
and prejudice the rights of partially secured creditors."  It
likewise opposed a plan to reduce the value of its shares from P5
to P0.01 per share. "The suggested reduction in value of existing
common shares contemplated in the plan is too low and more
importantly failed to mention specifics and justifications as to
how reduced value was arrived at," the bank said.  PNB said the
proposed reduction of the par value of PAL's common shares
coupled with the proposed infusion of $150 million will radically
distort as well as dilute the equity participation of the
existing share holders of PAL.  

Foreign creditors of PAL, however, have thrown their support
behind PAL's revised rehabilitation plan after the debt-strapped
company made a partial payment of $37.9 million to the Europeran
Credit Agencies (ECAs) and the Export-Import Bank, the groups who
own the aircraft PAL uses.

Even if PAL can convince local creditors to support the plan, the
airline must still be able to raise the proposed $200 million
fresh equity by June 4.  The ECAs, which hold the biggest loan
exposure in PAL, have threatened to withdraw their support of the
plan and seize leased aircraft if the promised cash infusion does
not come on time.


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

IPC CORP.: Finalizes Debt Restructuring
---------------------------------------
Beleaguered IPC Corp, which yesterday incurred a staggering full-
year bottom-line loss of $295 million, has finalised a debt
restructuring scheme upon which its survival hinges, according to
a report appearing in the Straits Times.

The scheme, which will most probably be administered by Price
Waterhouse partner Nicky Tan, includes a moratorium binding on
all creditors for a period of 12 months.

As at Dec 31, total bank borrowings stood at $215 million, of
which US$70 million (S$121 million) was a syndicated loan.
The debt restructuring exercise, which has been in the works for
the last six months, will also entail the injection of up to $5
million in funds or banking facilities by chairman and founder
Patrick Ngiam into subsidiary, Austin Federation.

Said IPC: "The viability of the company as a going concern
depends on the successful outcome of its debt restructuring.
Management will work hard towards achieving this goal."
When contacted last night, IPC finance and administration
director Sally Lauw said everything was being done to ensure the
continued viability of the company.  Having said that, she
admitted that the group was open to selling IPC as a going
concern if a buyer could be found.


IPC CORP.: Initiates Legal Process to Collect its Accounts
----------------------------------------------------------
Having managed to recover less than 10 per cent of the $82
million owed to it, IPC Corp. has started legal proceedings
against some debtors.  IPC finance and administration director
Sally Lauw told The Straits Times last night: "We are trying to
recover the outstanding debt but with the kind of market
conditions we have, it's difficult."  She said the group has
commenced legal proceedings against some of the local debtors but
"as you know, you need money to take legal action".  "We are now
focusing on going forward, investing in our ultra-thin client
products. We don't want to focus so much on what is history."  
She declined to elaborate on the proceedings but it is understood
that the suits were mainly for debtors based in Singapore.  

IPC said last October that it had $82 million in outstanding
debts and long-term receivables unrecovered.  That figure was
arrived at after the group managed to recover $4.8 million, or
just 6 per cent of the original debt of $87 million.  It said
then that it was "not aware of any circumstance" that would
render its outstanding debts and long-term receivables doubtful
or unrecoverable.  But more than nine months later, most of those
debts are still outstanding.

According to IPC's latest balance sheet, long-term receivables as
at Dec 31 stood at $13 million, down from $65.7 million the
previous year.


NEPTUNE ORIENT: Hurt by debt load
---------------------------------
Neptune Orient Lines carries a heavy debt load, a reality that
contributed to its posting a record loss last year of 438.2
million Singapore dollars. The company, which had a loss of
S$297.3 million a year earlier, is putting the best
interpretation it can on the latest figures, saying they are a
"photograph of the past, not an ominous sign about the future."

In fact, Neptune Orient, which has some of the youngest cargo
ships afloat, says it expects to return to the black this year
because of higher freight rates, savings from the completion of
its integration with APL of the U.S., which it acquired in 1997,
and expected gains from its growing logistics business. (The Wall
Street Journal 01-Apr-1999)


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

BANGKOK BANK: BBC debtors given relief
--------------------------------------
Debtors of the permanently shut down Bangkok Bank of Commerce
(BBC) will be given some relaxation on loan repayments from now
until April 30 if they agree to restructure their non-performing
loans with the bank's asset management company, according to a
press statement. The debtors, for instance, will also be provided
a discount in interest rates immediately after they start
repaying loans.

BBC's asset management company -- Bangkok Commercial Asset
Management Ltd (BAM) -- said in a statement yesterday that such
relaxed rules have been made in a bid to help cash-strapped
borrowers in the midst of the country's economic crisis and will
be in line with the government's supporting policy. Debtors can
directly contact all 25 branches of the BAM countrywide," it
added.

Though beginning full operations today, BAM has been established
since Jan 28 this year, under a Bank of Thailand directive, in
order to manage bad assets transferred from the scandal-ridden
BBC. Under the BAM's working structure, there are 15 units, with
Aswin Kongsiri heading the company.

Apisak Tantiworawong, general manager of BAM, said that the
company has been established with the aim of rehabilitating its
debtors' financial status through debt restructuring and debt-to-
equity conversion. He revealed that BAM has bought BBC's non-
performing assets since Feb 12 this year and the bank's 1,460
staff have been transferred to the company.

The Thai government forced BBC to split its good and bad assets
last year and the good ones were transferred to the state-run
Krung Thai Bank while the bad ones were left with the bank for
further management. (The Nation 01-Apr-1999)


KASET THAI: Suspect offers to nail Wansley masterminds
------------------------------------------------------
A key suspect in the Michael Wansley murder case yesterday made
an offer to the police to implicate "the actual masterminds
behind the plot", in return for using him further as a state
witness in a bid to secure his immediate freedom, a police source
said.

Speaking after a meeting with police chief Pracha Promnok which
was arranged at his request, Boonphan Sutthiwiriwan mentioned the
names of three fellow executives at Namtal Kaset Thai Co Ltd,
whom he said he merely wished to see before making his decision.

Boonphan stood firm on his claim that he was not the mastermind
behind the murder of the Australian auditor, telling Pracha:
"Everyone knows who were behind the murder plot".

Besides Pracha's promise to arrange a future meeting between
Boonphan and the three unnamed people, the source said the police
chief did not clearly give the promise regarding the two
preconditions set by Boonphan, but quoted him as saying that he
would take it into consideration.

The source said Boonphan's cooperation would be very useful in
solving the case, as it could be used against all participants in
the murder, both at the operational level, including the fugitive
gunman and other mediators, and at the planning level, including
the three unnamed people.

After the one-hour talk with Pracha at the National Police Bureau
headquarters in Bangkok, Boonphan was flown to Nakhon Sawan for
further detention at Muang police station for another 12 days.

He was heard complaining loudly, and seemingly intentionally, to
police why the three unnamed people did not contact the station
to visit him, nor even contact him, unlike other Namtal Kaset
Thai employees who worked at lower levels.

Meanwhile, Australian Justice and Customs Minister Amanda
Vanstone said the Australian government and the business sector
were pleased with Thai police efforts in solving the case. "There
should not be anything to worry about," she said after meeting
Interior Minister Sanan Kachornprasart.

The Nakhon Sawan provincial court yesterday approved a police
request to further detain the two arrested suspects in the case
-- Hassanai Sathawan and Pol Pvt Kraiwal Buamas -- for a further
12 days at Tak Fa police station.

After the court convicted Somchai Jaihao last week of riding the
motorcycle for the gunman who shot dead Wansley, his first day in
detention began yesterday, after he was moved from the Nakhon
Sawan provincial prison to the Bangkok Remand Prison. (The Nation
01-Apr-1999)


NAKORNTHON BANK: Nakornthon finalising share placement
------------------------------------------------------
Nakornthon Bank expects to finalise its recapitalisation plans by
May, according to bank sources. Last week, bank directors
approved a plan requesting tier-one capital support from the
government. The bank plans to sell part of a issue new preferred
shares to the Finance Ministry. Other new shares are to be
privately placed with a foreign partner. Nakornthon has been
reported to be in talks with Standard Chartered, Bank of Nova
Scotia and a Taiwanese bank. One Nakornthon Bank executive said
several options had already been proposed to the Bank of Thailand
and the Finance Ministry.

The structure of the recapitalisation programme and the bank's
new partner will largely depend on the decision of regulators as
they would become a large shareholder under the plan. Under the
government's recapitalisation programme, the Finance Ministry
will purchase new preferred shares to increase tier-one capital
funds to up to 2.5% of asset value. Injections in excess of the
2.5% limit must be matched from new investors.

Analysts said Nakornthon Bank would likely require up to 15
billion baht in new capital to fully meet provisioning
requirements for bad loans. (Bangkok Post 01-Apr-1999)


RAJADAMRI HOTEL: Joint Regent bid stalls Heinecke
-------------------------------------------------
William E. Heinecke's ultimate dream of acquiring the Rajadamri
Hotel Plc, which owns 100 per cent of the five-star Regent
Bangkok, is slipping from his grasp after Goldman Sachs and
Bangkok Hotel Holdings, a joint venture between a Goldman Sachs
fund and the Charn Issara Group, have unexpectedly come up with a
counter tender offer of Bt38 per share.

This makes Heinecke's original bid of Bt25 per share for the
Rajadamri Hotel look unsavoury to shareholders, most of whom
still prefer to hold the stocks close to their chests for the
best final bid. Only a very small number of the 45 million
Rajadamri Hotel shares are freely floated in the open market,
making it almost impossible to take over the firm without
agreements from the major shareholders such as the Crown Property
Bureau, Thai Farmers Bank, EIE Insurance of Japan, which holds
the stocks through Rantack Co Ltd, and Ransway Co Ltd.

"The Regent Bangkok Hotel means a lot to Bill as he aims to turn
it into the flagship hotel property of his Royal Garden Resorts
Group," said an informed source. "Right now, Royal Garden Resorts
cannot boast of owning any prestigious properties."

There has been resentment among the major shareholders, such as
the Thai Farmers Bank which holds about 8 per cent in the hotel
company, after they learned about the Goldman Sachs' counter-bid
which was 52 per cent higher than Heinecke's tender price.

"Bill would like to buy the hotel cheap. It is unthinkable for
any shareholders to sell their stakes out to him at Bt27 per
share when Goldman Sachs is offering Bt38 per share," said
another informed source.

Ransway and Rantack, which held private auctions for their
combined 32.33 per cent stake in the Rajadamri Hotel in Hong
Kong, but to no avail, are waiting to unload their stocks at the
optimum moment. The takeover battle is looking increasingly more
hostile. (The Nation 01-Apr-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
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and Lexy Mueller, Editors.

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

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