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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    =20
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             A S I A   P A C I F I C     =20

      Friday, April 9, 1999, Vol. 2, No. 69

                    Headlines


* C H I N A   &   H O N G   K O N G *

DICKSON CONCEPTS: Dickson to unveil revamp
GUANGZHOU FINANCE: Fights to hold up liquidation
SING TAO: Zell on Sing Tao buy spree to foil Lazard


* I N D O N E S I A *

GARUDA INDONESIA: To present debt restructuring plan in June   =20


* J A P A N *

EIE INTERNATIONAL: Goldman Sachs takes over Regent Hotel Bangkok
KOKUMIN BANK: Gov't ready to protect Kokumin Bank=20


* K O R E A *

DAEJOO INDUSTRY: Completed creditor reconciliation
HWASEUNG TOURISM: Company is bankrupt
KOOKMIN LIFE: Ailing insurer may be sold=20


* M A L A Y S I A *

MALAYSIA ELECTRIC: Special administrators for MEC=20


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

GUOCO GROUP: Hong Leong's Guoco to raise 5.7b pesos
MARSMAN & CO: Marsman shareholders okay quasi-reorganization plan
PHILIPPINE AIRLINES: Marubeni sets terms in clearing rescue plan
PHILIPPINE ASSOC SMELTING: Several groups seen bidding for PASAR


* S I N G A P O R E *

INTRACO: Intraco replies to SES query


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C H I N A   &   H O N G   K O N G
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DICKSON CONCEPTS: Dickson to unveil revamp
------------------------------------------
Upmarket retailer Dickson Concepts (International) is expected to=20
unveil today an asset restructuring and share sale that could=20
significantly boost its war chest for a potential acquisition.=20
The company yesterday asked for trading in its shares to be=20
suspended pending announcement of a "major and connected=20
transaction". It referred to a disposal of its non-Asian assets=20
and said "a partial cash offer for the shares in the company is=20
also being contemplated". The group said it would make details of=20
the deals public today. It is understood to have appointed=20
investment bank Merrill Lynch to handle the deals.

The asset restructuring is believed to concern Dickson's London-
listed subsidiary Harvey Nichols, the high-fashion retail and=20
restaurants group. One analyst said the asset reorganisation was=20
likely to involve the transfer of real estate assets from the=20
group to Harvey Nichols. The Harvey Nichols store in=20
Knightsbridge -- a prime piece of London real estate -- is    =20
owned by Dickson Concepts and leased to the British subsidiary.
Several analysts said the company had previously confirmed that=20
offers of about =9C70 million (about HK$863.38 million) had been=20
made for the store last year. The offers were understood to have=20
been rejected but with the property market in London now buoyant,=20
the company is believed to be willing to accept a new offer.

Brokers said market talk was that France-based upscale bag and=20
fashion retailer LVMH Moet Hennessy Louis Vuitton had offered to=20
buy a stake in Dickson. LVMH has been on a buying spree recently,=20
having launched a general offer for Italian fashion giant Gucci=20
Group. (South China Morning Post 08-Apr-1999)


GUANGZHOU FINANCE: Fights to hold up liquidation
------------------------------------------------
The Asian Wall Street Journal reported that the Guangzhou Finance=20
Company will try to postpone a court hearing that will address a=20
petition to liquidate it. The petition was filed by a syndicate=20
of banks led by the US based Bankers Trust Co. The hearing is=20
scheduled for April 14. =20

Earlier reports stated that representatives of KPMG have been=20
appointed by the Hong Kong High Court as provisional liquidators=20
of Guangzhou Finance Company. Guangzhou Finance is an unlisted=20
Hong Kong wholly owned subsidiary of Guangzhou International=20
Trust & Investment Corporation (or GZITIC), the overseas=20
borrowing arm of Guangzhou, the capital of the Guangdong
province. =20

Newspaper reports last month also stated that GZITIC could be=20
pushed into bankruptcy if its Hong Kong based subsidiary=20
Guangzhou Finance is liquidated. A city of Guangzhou official was=20
cited as stating that the liquidation of Guangzhou Finance would=20
undermine the restructuring plan of GZITIC. GZITIC reportedly has=20
liabilities of about $2.46 billion, with about $740 million owed=20
to foreign creditors. GZITIC defaulted in September last year on=20
a $30 million syndicated loan arranged by Societe Generale SA. =20


SING TAO: Zell on Sing Tao buy spree to foil Lazard
---------------------------------------------------
A consortium backed by United States billionaire Sam Zell has=20
been aggressively buying shares in publisher Sing Tao Holdings in=20
the open market in an attempt to foil a takeover by Lazard Asia=20
Fund. The consortium, which includes Dublin-listed funds China=20
Enterprise Development Fund (CEDF) and Investment Co of China=20
(ICC), has a 3 per cent stake, or 12.64 million shares. The=20
purchases sent Sing Tao shares up to $1.24 by yesterday, from $1=20
less than two weeks ago, as the stock edges closer to Lazard's=20
general offer price of $1.25.

Sources said the consortium -- which was frustrated in its bid to=20
take over Sing Tao -- was likely to continue its buying spree to=20
bolster its influence during an upcoming special general meeting.=20
The meeting will seek minority shareholders' approval for certain=20
privileges that Lazard is offering exclusively to Sing Tao=20
chairman Sally Aw Sian as part of the deal. Approval is a prime=20
condition of the takeover, which will see Ms Aw sell her 50.04=20
per cent stake in Sing Tao for $262.38 million.

Sources said the consortium's proposal to team up with Lazard for=20
the takeover last week had been effectively rejected by Hong Kong=20
Tobacco chief Ho Ying-chie, an unsecured creditor of Ms Aw who is=20
claiming $274 million in unpaid debts via a bankruptcy petition.
It is understood Mr Ho has given his full backing to Lazard's=20
offer. The consortium lost out to Lazard last month after Ms Aw=20
walked away from a share sale agreement with CEDF and ICC. A vote=20
against all the resolutions in relation to the takeover, which=20
sources described as attempts to "rock" or "turn over the boat",=20
was expected by the consortium. The resolutions include an annual=20
$9 million consultant's fee payable for the next six years to Ms=20
Aw for her role as "a special adviser" to the company. She will=20
step down as chairman. Ms Aw will also receive an interest-
bearing loan of $58 million from Lazard.

Repayment of the principal and interest of the loan is linked to=20
a profit-sharing mechanism, which means Ms Aw will receive a=20
profit if Lazard sells any Sing Tao shares at more than $1.25, or=20
above the general offer price, during the next six years.=20
Although Ms Aw will raise about $340 million from the takeover,=20
she has to deal with a shortfall of about $70 million in unpaid=20
debts. Most of the shortfall is owed to Mr Ho.

Sources said Hong Kong Tobacco was likely to buy a minority stake=20
in Sing Tao to enable it to share in a possible special dividend=20
payout by the cash-rich publisher. The possibility of a payout=20
was highlighted in a comparison of the CEDF-ICC and Lazard offers=20
by Mrs Justice Doreen le Pichon in January. She refused to ratify=20
the CEDF-ICC offer, saying Lazard's was "more advantageous" to Ms=20
Aw's unsecured creditors, including Mr Ho.

Investment fund Lazard has recently increased its efforts to hire=20
a chairman for Sing Tao. A leading candidate to be provisional=20
chairman is believed to be Stanislaus Tsao Kwang-ngo. Now=20
retired, Mr Tsao spent 16 years with the Lai Sun Group and ATV.
(South China Morning Post 08-Apr-1999)


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I N D O N E S I A
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GARUDA INDONESIA: To present debt restructuring plan in June   =20
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The Asian Wall Street Journal reports that the Indonesia's flag=20
carrier Garuda Indonesia will present a restructuring plan to its=20
creditors addressing its $108 billion in foreign loans.  This=20
plan will reported address $380 million in short-term promissory=20
notes, $600 million in leasing agreements for six Airbus=20
aircraft, and $100 million in long-term debt. The plan will be=20
presented to creditors in June.


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J A P A N =20
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EIE INTERNATIONAL: Goldman Sachs takes over Regent Hotel Bangkok
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Leading U.S. investment bank Goldman Sachs and Co. has=20
effectively taken over the five-star Regent Hotel Bangkok by=20
having one of its property investment funds purchase 14,550,000=20
shares of Rajadamri Hotel Co., owner of the Regent, from two=20
subsidiaries of Japan's EIE International Corp., Goldman Sachs=20
announced Thursday. The investment fund, GS Emerging Market Real=20
Estate Fund, brought 32.3% of Rajadamri Hotel from Japanese=20
sellers Ransway Co. and Rantack Co., both EIE subsidiaries, at 38=20
baht (1.02 dollars) per share. The purchase makes Goldman Sachs=20
the largest single shareholder in Rajadamri Hotel, which owns=20
100% of the five-star hotel, the company statement said.

Goldman Sachs and its local ally, Bangkok Hotel Holdings,=20
announced last week a tender offer for a minimum 26% of Rajadamri=20
Hotel. In accordance with Thai securities law, Goldman Sachs, as=20
the single largest shareholder, is committed to proceed with a=20
mandatory tender for 100% of Rajadamri Hotel. Henry Cornell,=20
managing director of Goldman Sachs (Asia) Co., said earlier the=20
investment in the Regent Hotel reflects Thailand's improving=20
tourism industry.

The deal has brought about 14.5 million dollars into the cash-
starved Japanese sellers, Ransway and Rantack. Their parent=20
company, EIE, also faces a severe liquidity crunch of its own.
EIE, a hotel and resort developer, is a major debtor of the=20
recently bankrupt Long-Term Credit Bank of Japan. It has many=20
properties abroad, including those in Hong Kong, London and=20
Bangkok, but most of the properties are nonperforming assets that=20
intensified the financial problems at LTCB, according to one=20
Japanese banker familiar with the company and the bank. Neither=20
EIE nor its financial adviser Mitsubishi Trust and Banking Corp.=20
were available for comment on the Regent deal or on EIE's=20
financial status. (Kyodo News 08-Apr-1999)


KOKUMIN BANK: Gov't ready to protect Kokumin Bank=20
-------------------------------------------------
The Financial Supervisory Agency (FSA) has found that Kokumin=20
Bank, a Tokyo-based second-tier regional bank, has a 50 billion=20
yen capital deficit, raising the specter that the government take=20
measures to support the bank, agency sources said Thursday.=20
Should the bank fail to convince affiliated firms to recapitalize=20
it, the FSA and the Financial Reconstruction Commission (FRC),=20
another bank regulator, will start protection procedures, the=20
sources said.

The two regulatory agencies are looking at either applying a=20
"bridge bank" scheme or temporarily nationalizing the bank, the=20
sources said. If the bridge bank scheme is applied, the FRC would=20
declare the bank insolvent, send in FRC-appointed administrators=20
as new managers, and make the bank into a bank whose management=20
decisions are controlled by the government. The resulting bridge=20
bank would be allowed to operate for a few years to give=20
prospective purchasers time to assess the quality of the bank's=20
loan portfolio and make a reasonable purchase offer.

During the assessment period, the government would seek to make=20
the bank more attractive to possible buyers by transferring a=20
large part of the bank's bad loans to the newly created state-run=20
Resolution and Collection Corp. (RCC). If the nationalization=20
scheme is adopted, the government will put the bank under state=20
administration for a limited time by purchasing all of the bank's=20
shares at a low price to be set by a government panel.

This option would also allow the government to search for a buyer=20
while transferring a major part of the bank's bad loans to RCC.
FSA bank examiners found that Kokumin, with 40 domestic branch=20
offices and 515.6 billion yen in deposits at the end of December,=20
had developed a huge capital deficit as of Sept. 30, 1988, the=20
sources said. A capital deficit is the extreme depletion of a=20
bank's capital resources to the point where its liabilities=20
eclipse its real market asset value due to such factors as huge=20
prospective bad-loan losses.

Kokumin Bank's huge prospective losses on its real estate loans=20
have come to dominate its loan portfolio, leading the regulatory=20
authorities to judge that it is insolvent, the sources said.
The bank racked up a 12.05 billion yen unconsolidated net loss in=20
fiscal 1997 ended March 31, 1998, due to huge losses on property=20
loans extended during the late 1980s asset-inflation bubble=20
economy. A group of more than 50 companies led by bus, transport=20
and leisure conglomerate Kokusai Kogyo Co. owns 80% of the=20
unlisted bank's shares.

If Kokumin Bank's operations are taken over, all of its deposits,=20
in addition to interbank market liabilities, will be protected by=20
the government. The FSA, teaming up with the Bank of Japan, has=20
been inspecting the books of Japan's 64 regional banks and 60=20
second-tier regional banks since last October. Industry analysts=20
say that should inspectors declare more of these smaller banks=20
insolvent, the development would set in motion the consolidation=20
of the regional banking industry on which Japan's local=20
businesses depend heavily for funds. (Kyodo News 07-Apr-1999)


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K O R E A=20
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DAEJOO INDUSTRY: Completed creditor reconciliation
--------------------------------------------------
The Seoul District Court advertised in the Korean language Maeil=20
Kyungje that the Daejoo Industry Company completed its creditor=20
reconciliation procedure. The company's presidents are Mr. Yi=20
Kye-sang and Mr. Yi Jae-il.


HWASEUNG TOURISM: Company is bankrupt
-------------------------------------
According to the Korean language Maeil Kyungje's Business Brief=20
section, the Hwaseung Tourism Development Company applied for=20
bankruptcy to the Chunchon District Court.=20


KOOKMIN LIFE: Ailing insurer may be sold=20
----------------------------------------
South Korea's financial watchdogs said yesterday they were=20
holding talks with US insurer New York International to sell off=20
ailing Kookmin Life Insurance Co Ltd. The talks came as Seoul=20
pushed into the second phase of its drive to clean up its=20
financial sector, which is groaning under the weight of billions=20
of dollars in bad debts which contributed to the country's=20
economic collapse in late 1997.=20

An official of the Financial Supervisory Commission (FSC) said=20
that in addition to New York International, the watchdog body was=20
also negotiating with another foreign insurer on the sale of=20
Kookmin Life. It expects a memorandum of understanding on the=20
sale of the insurer this month.=20

Aside from Kookmin Life and Korea Life Insurance Co Ltd, which is=20
in talks with eight foreign institutions interested in a=20
takeover, five other small life insurers were seeking foreign=20
partners. (Agence France-Presse and The Star Online 08-Apr-1999)


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M A L A Y S I A
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MALAYSIA ELECTRIC: Special administrators for MEC=20
-------------------------------------------------
Danaharta Nasional Bhd has appointed two special administrators=20
from Arthur Andersen & Co--Lim Tian Huat and George Koshy--to=20
oversee the operations of Malaysia Electric Corp Bhd (MEC)=20
effective yesterday. Danaharta said in a statement that it had=20
also appointed Patrick Chew Kok Bin and Alvin Tee Guan Pian of=20
Anuarul Azizan Chew & Co as special administrators for Teramaju=20
Sdn Bhd.=20

Danaharta said a 12-month moratorium against creditor actions=20
would also come into effect with the appointments. "During that=20
period, no creditor may take action against any of the=20
companies," it said, adding that this was to preserve the assets=20
of the companies. (AFX and The Star Online 08-Apr-1999)


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P H I L I P P I N E S=20
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GUOCO GROUP: Hong Leong's Guoco to raise 5.7b pesos
---------------------------------------------------
Listed unit of Malaysia's Hong Leong group is raising an      =20
unprecedented 5.7 billion pesos (S$257 million) in fresh funds to=20
bankroll expansion projects and pay debts. Guoco Holdings=20
Philippines Inc (GHPI) will raise the money via the sale of non-
core assets and US dollar-denominated convertible bonds in the=20
foreign financial market. GHPI is a conglomerate whose core=20
businesses revolve around financial services, forestry,=20
distribution, telecommunications, manufacturing, ceramics and=20
property. The assets up for sale include real-estate holdings in=20
Calamba, Laguna, south of Manila, and some industrial properties=20
in Batangas province.=20

The sale of the properties and bond issues are expected to yield=20
4.2 billion pesos and 1.5 billion pesos, respectively, BPI=20
Securities analyst Lionel Leonen said. "The proceeds would be=20
more than enough to cover GHPI's major projects this year and=20
trim a portion of its 9.6 billion pesos debt as of December=20
1998," he said.=20

GHPI plans to allot 2.2 billion pesos for its capital=20
expenditures, of which 55 per cent would go to wholly-owned=20
subsidiary Guoco Ceramics, a major player in the Philippines'=20
ceramic tile market. The remaining 45 per cent would be earmarked=20
for the expansion of the manufacturing and distribution=20
facilities of GHPI subsidiary Pepsi Cola Products Phils Inc.=20

GHPI's debts ballooned last year due to the peso's fall against=20
the US dollar, prompting the conglomerate to set aside foreign=20
exchange loss provisions equivalent to about 877 million pesos.=20
The debts included some 850 million pesos in loans owed to=20
various financial institutions, including the Philippine National=20
Bank, Bank of the Philippine Islands and the Philippine=20
Commercial International Bank. GHPI has yet to disclose who will=20
underwrite its first ever foreign bond float, the offer period,=20
the coupon rate and other details. (Singapore Business Times=20
08-Apr-1999)


MARSMAN & CO: Marsman shareholders okay quasi-reorganization plan
-----------------------------------------------------------------
Stockholders of listed distribution firm Marsman & Co., Inc.=20
recently approved a quasi-reorganization plan to eliminate some=20
344 million Philippine pesos (PhP) in negative retained earnings=20
posted last year.

"Basically, the plan will allow the company to start fresh with a=20
clean balance sheet because that quasi-reorganization will in=20
effect eliminate the deficit of Marsman in its balance sheet,"=20
Marsman chief financial officer Kas Jamian told BusinessWorld=20
yesterday.

The said quasi-reorganization involves the reduction in Marsman's=20
paid-in capital and issued capital through a reverse stock split.=20
The official said this will be done by exchanging every two=20
shares with one share. Through the reverse stock split, he said,=20
the company will be able to create additional paid-in surplus=20
against which it can eliminate the deficit.

"The plan would also enhance Marsman's ability to declare=20
dividends in the future because of the elimination of the deficit=20
assuming we will be able to generate positive earnings in the=20
coming years," he said.

Another feature of the reorganization plan is the amendment of=20
the company's articles of incorporation reducing the authorized=20
capital stock to 1.2 billion shares from 1.5 billion shares to=20
comply with legal requirements since Marsman's equity has been=20
reduced to about PhP390 million. Meanwhile, the recapitalization=20
plan for wholly owned subsidiary, Metro Drug, Inc., (MDI) was=20
also approved during the meeting. This involves the investment=20
of PhP300 million by a third-party investor into the company=20
through the subscription to 300 million shares from the latter's=20
unissued capital stock. (BusinessWorld 08-Apr-1999)


PHILIPPINE AIRLINES: Marubeni sets terms in clearing rescue plan
----------------------------------------------------------------
Marubeni Corp. of Japan, which acts as security trustee to two of=20
Philippine Airlines' aircraft, has set conditions in approving=20
the amended rehabilitation plan of the ailing carrier. Marubeni=20
joins the Export-Import Bank and several local banks which have=20
given conditional approval to PAL's revised rehabilitation plan.=20
In a filing with the Securities and Exchange Commission (SEC),=20
Marubeni said it would withdraw its approval of PAL's=20
rehabilitation plan if the proposed $200 million fresh equity is=20
not infused by June 4. Other major creditors have imposed the=20
same deadline for the airlines to raise the needed capital to=20
sustain its operations and pay its $2.2 billion debts.

Marubeni said it would seize the aircraft leased to PAL if the=20
proposed equity injection is not made by June 4. The company said=20
its approval is also subject to the condition that PAL will=20
remain the country's flag carrier and to release PAL from its=20
obligation to fly the so-called missionary routes.

Marubeni further demanded that operating permits that may be=20
granted to other designated carriers be subject to a thorough=20
review that proves beyond doubt that such increased capacity is=20
in response to unsatisfied demand. In addition, the company=20
demanded that interest payments in respect of the aircraft=20
commence on April 15 and that the contract between PAL and Regent=20
Star Services, a management consultancy hired by PAL, remain in=20
full force and effect for its scheduled term.

"Any amendment to the terms of the plan which has an adverse=20
consequence for the rights and interests of the secured aircraft=20
creditors would not be acceptable to us," the company said. "We=20
believe that the plan as drafted and submitted to the SEC finely=20
balances the competing interests of the creditors and it is our=20
belief that any amendment to the terms of the plan is inevitably=20
going to upset that balance," the Marubeni added.

It also wants the interim rehabilitation receiver to be charged=20
with the implementation of the plan as currently constituted or a=20
body with the same degree of management and control over the=20
company. Marubeni has also required PAL to identify all its bank=20
accounts in Japan and to implement cash monitoring procedures=20
acceptable to them. (Manila Times 08-Apr-1999)


PHILIPPINE ASSOC SMELTING: Several groups seen bidding for PASAR
----------------------------------------------------------------
Several foreign and local businessmen are seriously considering=20
taking part in the bidding for state-controlled copper smelter=20
Philippine Associated Smelting and Refining Corp. (PASAR), which=20
set to be auctioned on May 3. Domingo Bautista, Asset=20
Privatization Trust supervising trustee for Pasar, said four=20
investor groups have paid due diligence fees in expressing=20
intention to join the privatization of the financially-troubled=20
company. "I expect the number of investors to reach at least six=20
to seven," Bautista said.=20

He did not identify the interested parties but said two are=20
represented by consultancy and accounting company SGV & Co.

Bautista said the winning bidder can opt to take full control of=20
the country's sole and Southeast Asia's biggest smelting plant by=20
converting the P24 billion in pledges and receivables into=20
equity. The move will dilute the equity holdings of Pasar's=20
minority shareholders including those of the local miners and=20
Japanese consortium composed of Marubeni Corp., Itochu Corp. and=20
Sumimoto. The government is selling its 42 percent stake in=20
Pasar, including P24 billion in pledges and receivables.

"The winning bidder will not assume any of Pasar's P7 billion=20
obligations because these will be liquidated using part of the=20
proceeds of the sale of the government's share in Pasar,"=20
Bautista said. The bid offer for Pasar could start from P11=20
billion, Bautista said, representing the value of its assets at=20
the Leyte Industrial Development Estate in Isabel, Leyte. (Manila=20
Times 08-Apr-1999)


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S I N G A P O R E
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INTRACO: Intraco replies to SES query
-------------------------------------
In response to a query from the Stock Exchange of Singapore,=20
Intraco said group operating profit in 1998 for its engineering=20
and project division fell 32 per cent to $2.9 million in spite of=20
a 17.2 per cent rise in turnover due to lower gross margins.

The group's food and food-processing division saw operating =20
losses due to additional provisions for doubtful debts arising=20
from Russia and China. Also, despite a 24 per cent fall in sales=20
to $70 million, Asean operations made an operating profit of=20
$116,000; however, operating losses were incurred in 1997 due to=20
bad debts and losses by subsidiaries in the region. And despite a=20
sharp rise in sales, operating losses of other operations=20
worsened due to the disposal of automotive inventory and the=20
provision of doubtful debts for Russian and China debtors.

The second-half performance was affected as trading conditions=20
were more difficult than expected, particularly due to the=20
debarment of a subsidiary in government contracts. (Singapore=20
Business Times 08-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=20

Troubled Company Reporter -- Asia Pacific is a daily=20
newsletter co-published by Bankruptcy Creditors' Service,=20
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,=20
DC USA.  Debra Brennan and Lexy Mueller, Editors.

Copyright 1999.  All rights reserved.  ISSN: 1520-9482. =20

This material is copyrighted and any commercial use,=20
resale or publication in any form (including e-mail=20
forwarding, electronic re-mailing and photocopying) is=20
strictly prohibited without prior written permission of=20
the publishers.  Information contained herein is obtained=20
from sources believed to be reliable, but is not=20
guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6 months=20
delivered via e-mail. Additional e-mail subscriptions for members=20
of the same firm for the term of the initial subscription or=20
balance thereof are $25 each. For subscription information,=20
contact Christopher Beard at 301/951-6400.

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