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

      Tuesday, April 13, 1999, Vol. 2, No. 71

                    Headlines


* C H I N A   &   H O N G   K O N G *

ASTORIA FASHION DESIGN: Winding-up petition
CA PACIFIC: Clients to pay CA Pacific costs
DURTON INDUSTRIES LIMITED: Winding-up petition
LAI SUN DEVELOPMENT: Stock on hold as LSD grants Lai Fung option
RUNAN PACIFIC MINING: Winding-up petition

SABO RESTAURANT GROUP: Winding-up petition
SING TAO HOLDINGS: Sing Tao stock closes higher than Lazard offer
SVEN GARMENT COMPANY: Winding-up petition
XIN ZHONG GANG BUILDING: Writ issued against Beijing company


* J A P A N *

KOKUMIN BANK: FRC declares Kokumin Bank insolvent, will take over
                           
LONG TERM CREDIT: Police to beef up investigators
NIKKO ELECTRIC: Employees make Nikko Electric file for protection
NIPPON CREDIT: Police to beef up investigators


* K O R E A *

DAEHAN INVESTMENT BANKING: Ailing investment bank suspended
DAIHAN MERCHANT BANK: Bank operations stopped
DONGBANG PEREGRINE SECURITIES: Securities license revoked
HANGUK DEVELOPMENT LEASE: Selected for workout
HANIL INVESTMENT: Sell-off deadlocked

KOREA FIRST BANK: KFB sell-off to Newbridge sours
SUNGWON CONSTRUCTION: Files for court mediation


* S I N G A P O R E *

NEPTUNE ORIENT: Hires Danish chief


* T H A I L A N D *

KING POWER INTERNATIONAL: Announces year-end results
               
TELECOMASIA: May amend concession contract with government
THAI TELEPHONE: May amend concession contract with government


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

ASTORIA FASHION DESIGN: Winding-up petition
-------------------------------------------
A petition for the winding up of Astoria Fashion Design Co.,
Limited was presented to the High Court on Mar 18 by Leung Yin
Yee of Room 306, Yat King House, Lai King Estate, Kowloon, and
the said petition is directed to be heard before the court at  
9:30 am on May 12, 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.


CA PACIFIC: Clients to pay CA Pacific costs
-------------------------------------------
The cost of the legal tug-of-war over CA Pacific shares must come
out of the $1 billion worth of securities held for clients of the
collapsed brokerage, a judge ordered yesterday. Liquidators
PricewaterhouseCoopers must now consider the most cost-efficient
and client-friendly way to implement the judge's order, all
investors effectively have to bear the burden proportionately. In
calculating the proportion to be footed by each investor, the
value of securities would be crystallised at the date of the
brokerage's collapse -- January 20, last year.

The judge refused to have the costs taken from the $38 million in
free assets held by CA Pacific Securities amid fears that
investors who lost out in the legal battle would suffer further.

The class of clients who would be better off if the shares were
sold and equally distributed would see a further depletion in the
funds available to them, with the likelihood that difficulty in
tracing their claims would make them effectively unsecured, the
judge said. The other class of clients are those who would best
benefit if they had proprietary claims to the securities and cash
held by the brokerage.

In December the judge ordered that the shares be returned to the
clients, admitting, however, that this could make liquidation
costly, time-consuming and reap a potential "unjust result".
(South China Morning Post 09-Apr-1999)


DURTON INDUSTRIES LIMITED: Winding-up petition
----------------------------------------------
A petition for the winding up of Durton Industries Limited was
presented to the High Court on Mar 10 by Cheung Kwai Chun of Flat
A6, 29th Floor, Carson Mansion, 117 King's Road, North Point,
Hong Kong, and the said petition is directed to be heard before
the court at 11:00 am on April 28, 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.


LAI SUN DEVELOPMENT: Stock on hold as LSD grants Lai Fung option
----------------------------------------------------------------
Shares of Lai Sun Development and its mainland property arm Lai
Fung Holdings were suspended from trading yesterday pending an
announcement. The stock exchange said the action related to LSD's
granting of an option to a wholly owned subsidiary of Bank of
China to subscribe for 250 million shares in Lai Fung.

According to the Hong Kong Standard, the 250 million shares
represent 23.93 per cent of the issued share capital of Lai Fung
Holdings. Based on Lai Fung's last closing price, the stake is
worth about $112.5 million. (South China Morning Post
09-Apr-1999)


RUNAN PACIFIC MINING: Winding-up petition
-----------------------------------------
A petition for the winding up of Runan Pacific Mining (Holdings)
Limited was presented to the High Court on Mar 10 by Mui Hiu Chun
of Room A, 8th Floor, Block 1, Ma On Shan Centre, On Chun Street,
Shatin, New Territories, and the said petition is directed to be
heard before the court at 11:00 am on April 28, 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.


SABO RESTAURANT GROUP: Winding-up petition
------------------------------------------
A petition for the winding up of Sabo Restaurant Group Limited
was presented to the High Court on Mar 1 by Yeung Wai Ling of
Room 331, Tin Wan House, Shum Tin Estate, Kwun Tong, Kowloon ,
and the said petition is directed to be heard before the court at  
9:30 am on April 21, and any creditor or contributory of the said  
company desirous to support or oppose the making of an order on
the said petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition will be
furnished to any creditor or contributory of the said company
requiring the same by 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.


SING TAO HOLDINGS: Sing Tao stock closes higher than Lazard offer
-----------------------------------------------------------------
According to the Hong Kong Standard, the share price of Sing Tao
Holdings closed at $1.27 yesterday, higher than the $1.25 a share
general offer by Lazard Asia for the company, sparking
speculation that rival bidders are trying to spoil the deal or to
buy influence at an upcoming special general meeting where
minority Sing Tao shareholders are to be asked to approve a
package of privileges offered by Lazard Asia to Ms Aw under its
takeover proposal.

Analysts said that Lazard was sitting tight, regarding the ploy
as an attempt to test the market, which could prove very
expensive. A consortium backed by US billionaire Sam Zell,
frustrated by an earlier attempt to take over Sing Tao, was
reported to have built a 3 per cent stake, or 12.64 million
shares.


SVEN GARMENT COMPANY: Winding-up petition
-----------------------------------------
A petition for the winding up of Sven Garment Company Limited
was presented to the High Court on Mar 2 by Chan Yee Ha of Room
2213, Ting Hong House, On Ting Estate, Tuen Mun, New Territories,
and the said petition is directed to be heard before the court at  
9:30 am on April 28, 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.


XIN ZHONG GANG BUILDING: Writ issued against Beijing company
------------------------------------------------------------
According to the Hong Kong Standard, Chun Wo (China) issued a
writ on Thursday against Beijing Xin Zhong Gang Building to
demand a payment of $38.1 million related to a construction
project. Chun Wo is a wholly owned subsidiary under listed Chun
Wo Holdings. The writ did not give further details.


=========
J A P A N  
=========

KOKUMIN BANK: FRC declares Kokumin Bank insolvent, will take over
                           
-----------------------------------------------------------------
The Financial Reconstruction Commission (FRC) on Sunday declared
Kokumin Bank, a Tokyo-based, second-tier regional bank, insolvent
and decided to send its appointed administrators to take over the  
bank's management, FRC officials said. The government bank
regulator took the measure under a financial-system  
recapitalization law after the bank informed the commission
earlier in the day that it could no longer sustain itself and was
in danger of halting the withdrawal of deposits, according to the
officials.

All deposits at the bank will be protected by the government and
the bank will continue its business under the management of three
administrators -- Akira  Tachimoto, a certified public
accountant, Hideki Matsushima, a lawer, and the Deposit Insurance
Corp. (DIC). The Bank of Japan (BOJ), the central bank, will also
provide special loans to guarantee the bank's operations.

Under the law enacted in October last year, the FRC will seek a
financial institution willing to take over the operations of
Kokumin Bank and will transfer its bad loans to the state-run
Resolution and Collection Corp.

If the FRC fails to find a possible buyer of Kokumin Bank, the
commission will set up a bridge bank to be wholly capitalized by
the DIC, a banking safety net funded by premiums paid by
financial institutions. If the bridge bank scheme is adopted,
Kokumin Bank would be the first to be converted into a bridge
bank under the new law. The planned bridge bank would be allowed
to operate for up to three years to find a possible buyer and be
liquidated if it fails to do so.

Kokumin Bank has asked a group of companies affiliated with
Kokusai Kogyo Co. -- a bus, transport and leisure company -- for
recapitalization, but has so far not been getting a positive
response, sources at the bank said. The Kokusai Kyogyo group has
an 80% stake in the unlisted bank, which had 40 branches and held
515.6 billion yen in deposits as of the end of December. Kokusai
Kogyo invested some 20 billion yen into the bank in fiscal 1996
by purchasing its newly issued shares as part of efforts to bail
it out.

Moreover, tens of billions of yen in deposits have been withdrawn
from the bank following Thursday's media reports that it is
experiencing a huge capital deficit, sources at the bank said.

The Financial Supervisory Agency (FSA), another banking industry
watchdog, has reportedly concluded that Kokumin Bank developed
its 50 billion yen capital deficit by Sept. 30, 1998. The bank's
capital deficit is expected to eventually exceed 70 billion yen,  
according to sources close to the FSA. The bank, buckling under
the strain of massive losses on real estate loans extended during
the asset-inflated "bubble" economy, racked up a 12.05 billion
yen unconsolidated net loss in fiscal 1997, which ended March 31,
1998.

It was also reported that three executives of failed Kokumin Bank
have resigned, the bank's bankruptcy administrator said Monday.
Akira Tachimoto told reporters that he accepted the resignations
from Masakuni Osano, the chairman, Yukio Okonogi, the president,
and Hideyuki Suzuki, a vice president, of the Tokyo-based second-
tier regional bank. (Kyodo News 11-Apr-1999, 12-Apr-1999)


LONG TERM CREDIT: Police to beef up investigators
-------------------------------------------------
The Tokyo Metropolitan Police Department is expanding its team
for investigations into alleged malpractice of failed Long-Term
Credit Bank of Japan and Nippon Credit Bank. The number of
investigators looking into the two banks is expected to increase
to roughly 200 as early as Monday to step up an analysis of
massive data, informed sources told Jiji Press Friday.

Last year, police began their probe into the banks, which are now
under temporary state control, and the number of investigators
totaled more than 100 at the end of the year.

LTCB is suspected of concealing problem loans and failing to book
relevant loan loss reserves in the business year ended March 1998
in violation of the Securities and Exchange Law. The bank is also
alleged to have paid undue dividends running counter to the
Commercial Code.

NCB as well is suspected of hiding problem loans and reducing its
loan loss reserves on its account book in the same year. (Jiji
Press English News 09-Apr-1999)


NIKKO ELECTRIC: Employees make Nikko Electric file for protection
-----------------------------------------------------------------
The Asian Wall Street Journal reported that an employee group at
Nikko Electric Industry Company has used provisions of a
corporate rehabilitation law to file their firm under court
protection. The management of this automotive electrical
equipment maker reportedly came close to court protection last
December, but opted to pursue their own reorganization plan
instead. Nikko Electric reportedly has debts totaling 14.1
billion yen.   

The article also cited a Japanese credit research agency as
saying that Nikko's problems have been worsened by both the slump
in domestic sales and its need to extend financial support to
affiliates, including its operations in Indonesia.  

Nikko supplies electrical equipment for diesel engines to truck
makers and the construction industry.  


NIPPON CREDIT: Police to beef up investigators
----------------------------------------------
The Tokyo Metropolitan Police Department is expanding its team
for investigations into alleged malpractice of failed Long-Term
Credit Bank of Japan and Nippon Credit Bank. The number of
investigators looking into the two banks is expected to increase
to roughly 200 as early as Monday to step up an analysis of
massive data, informed sources told Jiji Press Friday.

Last year, police began their probe into the banks, which are now
under temporary state control, and the number of investigators
totaled more than 100 at the end of the year.

LTCB is suspected of concealing problem loans and failing to book
relevant loan loss reserves in the business year ended March 1998
in violation of the Securities and Exchange Law. The bank is also
alleged to have paid undue dividends running counter to the
Commercial Code.

NCB as well is suspected of hiding problem loans and reducing its
loan loss reserves on its account book in the same year. (Jiji
Press English News 09-Apr-1999)


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

DAEHAN INVESTMENT BANKING: Ailing investment bank suspended
-----------------------------------------------------------
According to the South China Morning Post, troubled Daehan
Investment Banking, a unit of Sungwon Construction, has been
suspended from operating for three months by South Korea's
Financial Supervisory Commission. The FSC said the bank no longer
had the ability to meet its obligations because of a run
triggered by panicked withdrawals amid rumors Sungwon was near
collapse.

The suspension, which will take effect immediately and will be in
effect until July 8, came as Daehan had only just recovered from
a five-month suspension after the government helped recapitalise
the institution under a plan to restructure the debt-laden
financial sector. It brought the number of operational merchant
banks in South Korea to 11 from 30 in 1997.

The commission said Daehan would be allowed to repay overseas
loans, trading bills and won-denominated call loans maturing
during the suspension, under supervision of the authorities.

It said it will consider lifting the suspension if Daehan
Investment succeeds in raising sufficient capital to meet the
minimum adequacy ratio of 6 per cent from its present 0.64 per
cent. If it fails to meet the required capitalisation, it will be
referred to the government-owned Hanarum Merchant Bank for
possible liquidation.

The bank ran up a deficit of 188.6 billion won in 1997 and
recorded losses of between 100 billion and 200 billion won last
year.

It was taken over by Sungwon Construction in 1994 and resumed
operations last year after being suspended in 1997.

According to the Hong Kong Standard, the Financial Supervisory
Commission said it would suspend Daehan until July 9 and appoint
an administrative supervisor because of a cash crunch at the
bank.

It also said it would immediately begin a due diligence study on
Daehan's assets and debts and make future decisions according to
the results.

Supervisory officials said earlier yesterday Daehan had missed
payment on between 400 billion won and 500 billion in notes due
on Thursday.

However, financial authorities said then that Daehan, whose major
shareholder Sungwon Construction was rumored yesterday to have
defaulted on its own debt payment, would be granted a reprieve
instead of being declared in default.

An official at the Financial Supervisory Service had said on
Thursday it would announce by the end of April the names of two
merchant banks for closure as a follow-up to the country's
financial sector restructuring, but the closure itself may take
longer.


DAIHAN MERCHANT BANK: Bank operations stopped
---------------------------------------------
The Korean language Maeil Kyungje reports that the Financial
Supervisory Service (FSS) decided to freeze the Daihan Merchant
Bank's operation from April 10th to July 9th, 1999. The article
indicated that Daihan is no longer receiving support from other
financial institutions and cannot cover its deposits. The FSS
will consider permitting the bank to reopen if it can secure a
capital injection and raise its capital adequacy ratio to 6
percent as measured by the Bank for International Settlement
(BIS). Otherwise this merchant bank will reportedly be taken over
and liquidated by the Hanareum Merchant Bank.  


DONGBANG PEREGRINE SECURITIES: Securities license revoked
---------------------------------------------------------
The Korea Times reported that the license of Dongbang Peregrine
Securities was revoked yesterday after the Ministry of Finance
and Economy (MOFE) concluded that the firm had no chance of
revival. The ministry, according to the paper, had postponed the
decision in hopes of retrieving credit of 9.97 billion won
extended to the securities firm.

Dongbang Securities was ordered to suspend operations in October
last year following the Financial Supervisory Commission's (FSC)
evaluation that it was nonviable. However, the MOFE delayed
acting on the FSC request, the paper reported.

The total accumulated losses of Dongbang are estimated to be
around 116 billion won.  The company has a net worth of minus 52
billion won.


HANGUK DEVELOPMENT LEASE: Selected for workout
----------------------------------------------
The Korean language Maeil Kyungje reported that the Credit
Financial Agency Council (CFAC) opened their first meeting and
decided to select Hanguk Development Lease Company for a workout
program. The CFAC got agreement from creditors to postpone
exercising their rights from March 31st through June 30th.

The Hanguk Development Lease Co. has been doing credit
rescheduling with the approval of 80% of their debt and the
delayed payment deadline ended as of March 31st, 1999.

A Workout program is expected to give the company a chance to
normalize its operation. Creditors had previously been opposed to
the workout program for the Korea Development Lease Co. because
of fear that they would never recover their investment.


HANIL INVESTMENT: Sell-off deadlocked
-------------------------------------
The attempted sell-off of Hanvit Bank subsidiary Hanil Investment
has hit a deadlock, and the specter of an international lawsuit
now looms overhead. Hanvit has been in talks with Regent Pacific
Group, a British investment trust firm, but Hanvit recently
revealed that it received a letter from the British firm's
president James Mellon last Wednesday accusing Hanvit of refusing
to sign a sale contract without any due reason. In the letter,
Mellon warned that his company would not hesitate to take legal
measures.

Hanvit defended itself, saying that the contract has not been
signed because both parties have been unable to come to an
agreement on a selling price for Hanil Investment. Hanvit said
that before the haggling began, it had proposed a price of W45
billion, asking W7,500 per share in January, raising the asking
price to W84 billion, at W14,000 a share in March following a
reevaluation of the investment firm's assets. Negotiations
continued until the end of March, without any settlement, with
Hanvit blaming the failure of the negotiations on Regent Pacific,
which it said refused to go above W13,000 per share.

Sources say, however, that in April, the British firm had shown
every intention of purchasing Hanil Investment at the W14,000 per
share price, but Hanvit withheld its decision, with Bank
officials indicating an intention to raise the price even
further.

One investment market analyst gave the opinion that it was
improper of Hanvit to double their price from the original asking
price in the first place, adding that the Korean bank had shown
poor form in refusing to budge at the later stages of the
negotiation. (Digital ChosunIlbo 12-Apr-1999)


KOREA FIRST BANK: KFB sell-off to Newbridge sours
-------------------------------------------------
In the midst of its deadlock with Newbridge Capital of the U.S.
in negotiations for the sell-off of Korea First Bank (KFB), the
government has begun to seek out possible legal avenues
protecting it from having to pay damages or compensate for losses
incurred by the U.S. investment firm.

Newbridge has been demanding that the government write-off a
total of W7 trillion of the bank's loans, whereas the government
is holding out to keep such write-offs at the W4.5 trillion it
had originally proposed. One official at the Ministry of Finance
and Economy (MOFE) Said Sunday that although the government has
been doing its best to reach an agreement, the potential for a
successful close to the deal is so low that the government has
been looking into ways to protect itself legally in case
Newbridge demands compensation on behalf of its investors.

The MOFE official pointed out that Newbridge is partly to blame
for the impasse, both for failing to include GE Capital in the
deal as a member of the consortium and for being unable to raise
the required funds to cover the full write-off amount on its own.
The official said that the government is currently waiting for
the conclusion of the Seoul Bank sell-off to Hong Kong Shanghai
Bank before its goes back to review the KFB deal from the
starting point.

The official also added that the government is running short of
funds for financial sector restructuring and if the government
invests an additional W2.5 trillion into the sale of KFB, as has
been requested by Newbridge, there is likely to be a public
outcry. The official said he believes that the U.S. firm's
strategy is geared around purchasing KFB at a bargain basement
price. (Digital ChosunIlbo 12-Apr-1999)


SUNGWON CONSTRUCTION: Files for court mediation
-----------------------------------------------
On the heels of the suspension of business activities at Daehan
Investment Banking, parent firm Sungwon Construction filed for
court mediation at Chungju district court Monday due to a
shortage of operating funds. The Housing and Commercial Bank
(HCB), Sungwon's major creditor bank, said the same day that the
construction firm had failed to honor W42 billion worth of bills.
Sungwon had just narrowly missed having to declare bankruptcy
last Thursday after failing to pay W7.5 billion in debts by
managing to scrape the money together the next day. (Digital
ChosunIlbo 12-Apr-1999)


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

NEPTUNE ORIENT: Hires Danish chief
----------------------------------
Singapore's Neptune Orient Lines, which has a fleet of dozens of
cargo ships and tankers, is eager to return to profitability and
is reaching out far beyond its home port for help. It says it has
hired a Dane, Flemming Jacobs, a senior executive of the Danish
line A.P. Moller-Maersk, to lead the marine transportation
concern into the next century. The move marks the second time in
a year a foreigner has been named chief of a big Singapore
company in which the city-state is the largest shareholder.
Neptune Orient has been weighed down by five billion Singapore
dollars (US$2.88 billion) in debt, some of which was incurred
when it bought the U.S. shipper APL in 1997. (Wall Street Journal
12-Apr-1999)


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

KING POWER INTERNATIONAL: Announces year-end results
               
----------------------------------------------------
King Power International Group Co.,  Ltd. (Amex: KPG) today
reported financial results for the fourth quarter and  year ended
December 31, 1998. For the year, net revenues were $91.1 million,
compared to net revenues of  $96.0 million for 1997. The
company's net loss for 1998, after provision for doubtful
accounts and taxes, was $4.3 million or $0.21 per share, compared
to a net profit of $7.9 million or $0.40 per share for 1997.  

As a result of a material increase in the total amount of
Advances to Related Companies and Loans to Directors during 1998
and liquidity constraints on those businesses, the Company was
required to make a provision for doubtful accounts of $15.7
million. The Company's management believes that, during the 1999
and 2000 fiscal years, there should be a meaningful reduction in
the total of these doubtful accounts.

In addition to seeking repayment of these amounts as soon as
possible, the Company has begun work on a plan of corporate
restructuring whereby the assets and businesses of one or more of
these related companies may be acquired by one of the Company's
operating subsidiaries in exchange for extinguishing some of this
debt. If the current level of outstanding advances and loans is,
in fact, reduced by a meaningful amount, it may be possible to  
reduce the provision for doubtful accounts and such a reduction
could increase the amount of the Company's profits in future
fiscal years.

During 1998, KPG expanded its operations at all major airports in
Thailand, including opening two Harrods Duty Free Shops at
Bangkok International Airport. KPG is the largest Asian, publicly
traded operator of duty-free and tax-free retail stores, with 55
locations, primarily in airports throughout Thailand. (PR
Newswire 09-Apr-1999)


TELECOMASIA: May amend concession contract with government
----------------------------------------------------------
TelecomAsia Corp Plc (TA) and Thai Telephone & Telecommunication
Plc (TT&T) stocks soared last week on the Stock Exchange of
Thailand (SET) amid speculation that the firms might have rosier
prospects in amending their concession contracts with the  
government. But telecom experts warned it was merely speculative
forces driving up the prices as in practice the amendment was
likely to be more subtle than expected.

The companies have struggled to end year-long talks with their
creditors over their debt-restructuring plans, but signs of
success remain dim because the firms have yet to win the
government's support in the rearrangement of royalty-fee
payments.

TA pays 16 percent of its call revenue to the Telephone
Organization of Thailand, while TT&T gives 43 percent of its
income to the state agency. Both still have a stream of cash each
month, but with the royalty-fee issue ongoing, creditors are
preferring to shy away from talks.

TA is US$800 million in debt, while its largest subsidiary,
Telecom Holding, is US$330 million in debt. Supachai Jearavanont,
TA's president, said he hoped the debt-restructuring plan would
be completed this year. TT&T is fighting to clear its 38-billion
baht debt but seems to be encountering greater difficulties in
talks with its creditors because of its 43  percent royalty-fee
payment. (The Nation 12-Apr-1999)


THAI TELEPHONE: May amend concession contract with government
-------------------------------------------------------------
TelecomAsia Corp Plc (TA) and Thai Telephone & Telecommunication
Plc (TT&T) stocks soared last week on the Stock Exchange of
Thailand (SET) amid speculation that the firms might have rosier
prospects in amending their concession contracts with the  
government. But telecom experts warned it was merely speculative
forces driving up the prices as in practice the amendment was
likely to be more subtle than expected.

The companies have struggled to end year-long talks with their
creditors over their debt-restructuring plans, but signs of
success remain dim because the firms have yet to win the
government's support in the rearrangement of royalty-fee
payments.

TA pays 16 percent of its call revenue to the Telephone
Organization of Thailand, while TT&T gives 43 percent of its
income to the state agency. Both still have a stream of cash each
month, but with the royalty-fee issue ongoing, creditors are
preferring to shy away from talks.

TA is US$800 million in debt, while its largest subsidiary,
Telecom Holding, is US$330 million in debt. Supachai Jearavanont,
TA's president, said he hoped the debt-restructuring plan would
be completed this year. TT&T is fighting to clear its 38-billion
baht debt but seems to be encountering greater difficulties in
talks with its creditors because of its 43  percent royalty-fee
payment. (The Nation 12-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
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