TCRAP_Public/990412.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R     
             A S I A   P A C I F I C      

      Monday, April 12, 1999, Vol. 2, No. 70


* C H I N A   &   H O N G   K O N G *

CHUN WO CONSTRUCTION: Supplier demands $4m from Chun Wo
TAK WING INVESTMENT: Tak Wing hearing adjourned

* I N D O N E S I A *

BAKRIE & BROS: Bakrie family to sell 80% of shares of company

* J A P A N *

FUJI BANK: S&P cuts Fuji Bank's rating
KOKUMIN BANK: Regulators won't notify bank of inspection results

* K O R E A *

SHINKEUKDONG FLOUR MILLING: Starts creditor reconciliation

* M A L A Y S I A *

MALAYSIA ELECTRIC: MEC explains role of special administrator
MULTI-PURPOSE HOLDINGS: Multi-Purpose hit by RM585m loss
REPCO: Danaharta takes over control of listed Repco

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

INTERNATIONAL CONTAINER: To issue PhP1 B long-term debt papers
PHILIPPINE AIRLINES: Airline group nixes survival plan for PAL
PILIPINO TELEPHONE: PLDT may absorb ailing Piltel

* S I N G A P O R E *

JACK CHIA-MPH: family companies file for judicial management

* T H A I L A N D *

BANGKOK EXPRESSWAY: BECL reaches deal with creditors
NAKORNTHON BANK: Decision on NTB's partner on Monday

C H I N A   &   H O N G   K O N G

CHUN WO CONSTRUCTION: Supplier demands $4m from Chun Wo
Chun Wo Construction and Engineering, a subsidiary of locally
listed Chun Wo Holdings, is facing a writ claiming a $4 million
settlement for hiring charges and return certain scaffolding
equipment to a supplier -- Advanced Equipment Services. (Hong
Kong Standard 08-Apr-1999)

TAK WING INVESTMENT: Tak Wing hearing adjourned
Tak Wing Investment Holdings' winding-up petition hearing has
been adjourned until Monday. Standard Chartered Bank issued the
property investment company with the wind-up petition in
February. Last week, however, it announced the sale of a 25.4 per
cent interest to Gold Blue Holdings. (South China Morning Post


BAKRIE & BROS: Bakrie family to sell 80% of shares of company
The Bakrie family, which controls PT Bakrie Brothers, has
reportedly agreed to relinquish 80% of the shares of BNBR in  
five of its subsidiaries under a debt equity swap arrangement to
settle its debt of US$1.1 billion. "Now we are waiting for the
result of creditors' informal voting on April 20," BNBR chairman
Aburizal Bakrie said. Bakrie said he was optimistic that the
creditors would accept the arrangement, which he described as
"quite profitable." He said the family had also offered to sell  
30% of shares in other subsidiaries. (Asia Pulse 09-Apr-1999)

J A P A N  

FUJI BANK: S&P cuts Fuji Bank's rating
US ratings agency Standard and Poor's Thursday cut its ratings
for Japan's troubled Fuji Bank Ltd., saying the firm's future was
more risky now that it has taken over a weak trust bank. Standard
and Poor's dropped Fuji Bank's long-term ratings to "BBB" from
"BBB-plus," the agency said.

At the same time the agency raised its long-term senior unsecured
ratings for Yasuda Trust and Banking Co. Ltd., which Fuji Bank
took over last month, to "BBB-minus" from junk bond "BB-plus."
"The downgrade of Fuji Bank reflects the bank's heightened risk
profile due to the financial and business integration of Yasuda
Trust," Standard and Poor's said.

Fuji took over Yasuda on March 31 by raising its stake in the
firm to 56.4 percent for 300 billion yen (2.6 billion dollars).    
The deal was seen as another positive step forward in resolving   
the problems of Japan's bad-loan burdened banks. Two Japanese
banks have already been nationalised and others pushed into
mergers since bank recapitalisation reforms were passed last

But the New York-based agency warned Yasuda would be a   heavy
weight around Fuji's neck.

"Yasuda Trust's weak business prospects, coupled with persistent   
pressures on its asset quality, could weaken Fuji's already
limited financial flexibility," it said. (Agence France-Presse
and Business Day [Thailand] 09-Apr-1999)

KOKUMIN BANK: Regulators won't notify bank of inspection results
Japan's Financial Supervisory Agency is not ready to notify
Kokumin Bank of the findings in its inspection of the bank on  
Thursday, an agency official said the same day. The official was
commenting on a media report that Japan's bank regulators are
exploring the possibility of closing Kokumin Bank, concluding the
bank is insolvent. The agency has examined some of the material
obtained at the Tokyo-based  second-tier regional bank, but it
remains to be seen when it will notify the  bank of the results,
the official said. It is difficult to do so within Thursday, the
official said. The agency's on-the-spot inspection of Kokumin
Bank began Jan. 19 and finished March 4. (Jiji Press English News


SHINKEUKDONG FLOUR MILLING: Starts creditor reconciliation
The Pusan District Court advertised in the Korean language Maeil
Kyungje that the Shinkeukdong Flour Milling Company started its
creditor reconciliation procedure.  The creditors have until May
12th, 1999 to file their claims.  The company's address is 68-21
Chwach'on-dong, Dong-gu, Pusan and the president is Mr. Yi Kyu-


MALAYSIA ELECTRIC: MEC explains role of special administrator
The Malaysia Electric Corporation Bhd (MEC) issued a statement
yesterday explaining the role of the special administrator
appointed by Danaharta Nasional Bhd over the company. In its
statement it said in contrast to receivership, the special
administrator would work out proposals to ensure the survival of
the company as a going concern, or to achieve a more advantageous
realisation of assets than would be achieved from winding up the
company. The statement was issued jointly by the special
administrator Lim Tian Huat and MEC corporate adviser K P Yeoh.
Danaharta appointed the special administrator over MEC on

The statement said the appointment of special administrators was
Danaharta's approach to apply either loan management or asset
management strategies to its acquired non-performing loans.

"The role of loan management requires the special administrator
working out a proposal for the purpose of achieving the continue
operation of the company as a going concern. It will involve loan
restructuring strategies such as rescheduling of loans and debt
equity conversions. In order to preserve the assets of the
companies until the special administrators are able to complete
their tasks, a 12-month moratorium on any legal action by
creditor will take immediate effect."

MEC is a unit of Kuala Lumpur Industries Holdings Bhd and is
mainly engaged in the manufacture and marketing of electrical and
electronic home appliance for the domestic and international
market. (The Star Online 09-Apr-1999)

MULTI-PURPOSE HOLDINGS: Multi-Purpose hit by RM585m loss
Multi-Purpose Holdings Bhd (MPHB) yesterday reported a staggering
net loss of 585 million ringgit (S$267 million) for 1998 as
generous provisions wiped out earnings. The poor performance will
affect the price which Anwar Ibrahim ally Lim Thian Kiat will be
able to get from former Renong Bhd director Chan Chin Cheung for
his interest in Multi-Purpose. Loss per share worked out to 75
sen, against a loss of 9.2 sen in 1997. At the pre-tax level, the
diversified group posted a loss of RM47.5 million, against a
profit of RM283 million previously.

The group's core gaming business managed to post a pre-tax profit
of RM224 million, down 59 per cent. But other businesses in the
gaming division reported substantial losses, resulting in a pre-
tax loss of RM296 million for the division, compared with pre-tax
earnings of RM100.95 million in 1997.

With such a dismal set of results, Dr Chan, who is close to the
ruling elite in Malaysia, can ask for a lower price tag. With
control of MPHB, he will be able to gain control of other listed
entities -- Malaysian Plantations, Kamunting Corporation, Magnum
Corporation, Bandar Raya Developments, Sarawak Enterprise
Corporation, Leisure Management and Great Wall Plastic. The group
is capitalised at more than RM8 billion. (Singapore Business
Times 09-Apr-1999)

REPCO: Danaharta takes over control of listed Repco
Malaysia's bad debt agency Danaharta has taken over control of
the first listed entity and its major shareholder -- former high-
flyer Repco Holdings and Teras Cemerlang. Danaharta yesterday
appointed PricewaterhouseCoopers special administrators of the
Sabah-based firm and seven subsidiaries. The move is believed to
be linked to Danaharta's bid to rehabilitate Sime Bank and its
soured loans to Repco and Teras Cemerlang.

Teras has a 30 per cent stake in the gaming and timber company
and is substantially controlled by businessman Low Thiam Hock. Mr
Low, who is in his mid-30s, was not available for comment
yesterday, while Repco's chief executive Choo Chin Tye told BT
that the company will issue a statement at an appropriate time.

Danaharta declined to reveal details of Repco, citing banking
secrecy laws.

The special administrators will work out a deal acceptable to all
its creditors in the next 12 months. In the interim, creditors
will not be allowed to take any action against Repco.

PricewaterhouseCoopers is expected to utilise subsidiary Everise
Capital -- the operator of the 4D gaming business in Sabah and
the main income generator for the group -- to retire some of the
debts. Although profitable, Everise incurred a loss of 92.5
million Malaysian ringgit (S$42.2 million) from its trading of
four counters -- MBf Capital, Uniphoenix Corporation, Chase
Perdana and Timberwell.

Repco, which was once the largest listed company on the Second
Board with a market capitalisation of over RM1 billion, chalked
up more than RM350 million in loans from the Sime Bank group
alone. The company, which has a small share capital of 14.3
million shares, saw its stock price skyrocket from less than RM10
in 1996 to almost RM150 by 1997. It was last quoted at RM7.10.  
Although the bank did not breach the single client lending limit,
it recently sued Repco when it defaulted on the loans last year.  
Furthermore, it is not clear how much Teras Cemerlang had
borrowed from Sime Bank and its broking arm SimeSecurities.

Both Sime Bank and SimeSecurities haemorrhaged last year due to
their aggressive streak while under the parenthood of listed Sime
Darby, which has since hived off the banking arm.

The Malaysian central bank has entrusted Danaharta with the task
of turning around the Sime Bank group's RM7.3 billion worth of
non-performing loans (NPLs), a staggering leap from RM3.3 billion
in December 1997. Danaharta, established last June, is well ahead
of its schedule to shave NPLs to below 10 per cent from over 15
per cent now. It has acquired RM8.1 billion worth of sour loans
and is rehabilitating another RM11.6 billion at Sime Bank and its
Labuan outfit. (Singapore Business Times 09-Apr-1999)


INTERNATIONAL CONTAINER: To issue PhP1 B long-term debt papers
Listed International Container Terminal Services, Inc. (ICTSI) is
seeking the approval from the Securities  and Exchange Commission
(SEC) for the issuance of one-billion-peso worth of long-term
commercial papers. In the registration statement it filed with
the SEC, ICTSI said it expects to raise 980.5-million-peso worth
of proceeds from the offer. Part of the proceeds to refinance a
portion of its existing debts, as well as finance its capital       
expenditures and future investments.

Of the expected proceeds, 500 million Philippine pesos (PhP) will
be used to refinance its debts, while the remaining PhP480.5
million will be earmarked to finance ICTSI's capital expenditures
and investments.

ICTSI said it is planning to tap AB Capital and Investment Corp.
to underwrite the issue. As of December 31, ICTCI said its debts
total PhP8.7 billion including the firm's liabilities.

ICTSI is the first Filipino-owned company engaged in the
operation of container terminals. At present, it is the sole
operator of the Manila International Container Terminal (MICT)
under an exclusive 25-year contract with the Philippine Ports
Authority. (BusinessWorld 09-Apr-1999)

PHILIPPINE AIRLINES: Airline group nixes survival plan for PAL
The International Air Transport Association (IATA), a powerful
group of international airline operators, has rejected several
provisions of the revised rehabilitation plan of Philippine
Airlines. IATA formally informed the Securities and Exchange
Commission PAL's survival program is unacceptable, because the
plan violates association rules.

"The IATA group objects to its proposed treatment under the
amended plan because such treatment is contrary to IATA rules and
regulations and constitutes an unfair and reasonable burden on
the IATA Group," it said.

PAL cannot enjoy certain industry privileges being accorded to
IATA-accredited companies. The privileges include a carrier's
authority to issue tickets for other airlines plying routes not
served by the ticket issuer. Under the rehab plan PAL want to
gain an immediate re-admission to the IATA's clearing house. But
the group said PAL can get re-admitted only if it pays all
arrearages, inclusive of interest payments. IATA's rules on
clearing house re-admission also requires PAL to post a security
deposit to cover its future obligations. But instead of observing
these rules, PAL has offered to pay the arrearages over a 12-
month period. It also has sought preferential rates in paying the

The country's ailing flag carrier also wants to burden IATA's
other clearing house participants with exposure and obligations
to third parties, the group claimed. "From an equitable
standpoint, such an offer is unfair; from a legal basis it is
likely unenforceable, and from a practical basis it likely cannot
succeed," IATA said, referring to PAL's rehab program.

The group said "under IATA's rules and regulations, participants
may not be involuntarily required to conduct business or maintain
inter-airline relationship with other participants."

"Moreover, if the terms of the amended plan relating to the IATA
group were adopted, it is possible that other IATA clearing house
participants... would withdraw from inter-airline relationships
with PAL," the group said. (Manila Times 09-Apr-1999)

PILIPINO TELEPHONE: PLDT may absorb ailing Piltel
Philippine Long Distance Telephone (PLDT), which is controlled by
Hong Kong-based conglomerate First Pacific, says it is
considering absorbing its mobile-phone subsidiary and
guaranteeing its debts totalling US$900 million.

PLDT senior vice president Antonio Samson said yesterday the
proposal being discussed with Piltel was part of a debt
forgiveness package.

Under the proposal, PLDT would swap its shares for additional
stock in Piltel. That would raise its stake in Piltel to 99 per
cent from 50 per cent.

PLDT would also offer a guarantee to the mobile phone unit's
creditors. In exchange, Piltel's creditors would forgive some of
its debts and restructure the rest.

PLDT issued an aggregate amount of US$175 million in 10-year
notes as the first drawdown under its Global Medium-term Not
Program established in September last year. The global notes were
priced at a final spread of 540 basis points over the 10-year
benchmark US Treasury bond with a semi-annual coupon of 10.5 per
cent to yield 10.56 per cent.

The transaction was launched at a size of US$150 million priced
at about 160 basis points over the spread of the Republic of the
Philippines 8.875 per cent Global 2008 bond.

Strong market reception led to the transaction being
significantly oversubscribed and subsequently raised to US$175
million. (Hong Kong Standard 08-Apr-1999)


JACK CHIA-MPH: family companies file for judicial management
In a move said to have taken its bankers by surprise, the Jack
Chia family is placing its private companies under judicial
management to prevent further erosion of its stake in listed
Jack Chia-MPH. Also, its lawyers from Rajah & Tann have
discharged themselves from acting for the family companies.

The family's new lawyers, from Wee Tay & Lim, informed the
family's bankers by letter on Wednesday that each of the six
holding companies of the family had filed a petition to place
themselves under judicial management. The lawyers are said to
have asked Ewe Beng Kwan and Loke Boh Keun from Ewe Loke &
Partners to be the judicial managers of the six companies -- Jack
Chia Properties (Singapore), Ernismore Holdings, Star of Siam,
Sabreor, Jack Chia Holdings (Singapore) and Emerford.

As a consequence of the filing, none of the creditor banks will
be able to dispose of the family's assets, including its JC-MPH
shares, without court approval until the petitions are heard.
Such cases are normally heard within a month.

The move is said to have surprised the Chia family's creditors as
on the same day as the filings of the petitions, they had been
informed that JC-MPH's executive chairman Danaii (Donald)
Chiarapurk had expressed his wish to meet them next Tuesday to
personally update creditors on the company's restructuring plans.

Further, the family had obtained a stay of action, also on
Wednesday, against Singapore Finance which had sued one of the
family companies for payment of an outstanding loan of about
$400,000. The family had claimed that there was a scheme of
arrangement to settle its financial problems and that the other
creditors had agreed to a stay of action.

However, apart from the $400,000 sum, Singapore Finance and its
sister company Hong Leong Finance are expected to be little
affected by the proposed appointment of the judicial managers as
both had already sold off most of the JC-MPH shares that the
family had pledged with the two finance companies.

The family is said to owe a clutch of banks -- including the
Hongkong Bank, Standard Chartered Bank, Bangkok Bank, MayBank,
OCBC Bank and Overseas Union Bank -- more than $100 million.

Rajah & Tann, which had just last month won for Jack Chia
Holdings (Singapore) an eight-week stay of action against Hong
Leong Finance, is said to have decided to discharge themselves
from acting for the company following its failure to keep them
fully apprised of developments. But just earlier this week the
High Court awarded Hong Leong $2.7 million, part of the $4.6
million that HLF sought originally from the estate of the late
founder Jack Chiarapurk in a suit filed last month to recover
money owing to it for share loans.

Hong Leong had sought a combined $17.2 million in three suits
against the Chia family and its companies. Most of the money had
since been recovered through the sale of JC-MPH shares pledged
with the finance company. Till recently, the family had owned
nearly 55 per cent of the listed company.

JC-MPH, a mini-conglomerate with business in publishing,
residential property and confectionary, is undergoing a major
restructuring under the supervision of Nicky Tan from the
auditing firm of Price Waterhouse. (Singapore Business Times


BANGKOK EXPRESSWAY: BECL reaches deal with creditors
Bangkok Expressway (BECL), the country largest tollway   
operator, has successfully conclude its debt restructuring deal   
with its creditors, agreeing to roll over 1 billion baht in
debts, due at the end of this year, to the next three years, BECL
Managing Director Supong Chayutsahakij said. BECL creditors have
agreed in principle to roll over the debts, however, the company
and its creditors will hold discussions later to detail the
repayment conditions, Supong said.

He said the company has adequate capital to pay the annual   
interest which amounts to as much as 3 billion baht, but is   
unable to repay the principal due to an overall loss in the   
company's performance.

Currently, the company owes 30 billion baht to 13 creditors --
its largest being the Bangkok Bank (BBL), followed by Siam
Commercial Bank, Krung Thai Bank (KTB), and Thai Military Bank
(TMB). BECL has cancelled bonus payments to its employees and   
dividends to shareholders due to a loss in operations posted last   

BECL posted a loss of 551.7 million baht in 1998, or 0.72 baht   
per share compared with a 1997 loss of 227.4 million baht, or   
0.36 baht per share. Nevertheless, its accumulated profit now
stands around 517 million baht, as well as still having around 30
million increase capital shares available. (Business Day
[Thailand] 09-Apr-1999)

NAKORNTHON BANK: Decision on NTB's partner on Monday
After 13 rounds of collapsed talks with potential partners,
Nakornthon Bank (NTB) and the Financial Restructuring Advisory
Committee (FRAC) will decide on Monday who will become the bank's
partner, according to a Bank of Thailand (BOT) source.

NTB has been in separate discussion with the UK's Standard
Chartered Bank and Singapore's United Overseas Bank, and a member
of the Wanglee family -- which holds a majority stake in NTB --
earlier said that the Singapore bank was closer than its rival to
clinching a deal with the small-sized Thai institution.

NTB has long been expected to file for a government injection of
funds due to its repeated failure to reach agreement with
potential partners. Aside from the two banks it is currently
talking to, the country's 13th-largest bank has also reportedly
been in discussion with the Union Bank of Switzerland and the
Bank of Nova Scotia.

A market source said that NTB had at that time been close to
reaching an agreement with a foreign bank. However, when it asked
for central bank assistance, the BOT halted the plan, insisting
that NTB had to wait for the Aug 14 measures. Later, as
conditions changed, the agreement was altered and new rounds of
talks started, according to the source. (The Nation 09-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 co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,
DC USA.  Debra Brennan and Lexy Mueller, Editors.

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

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