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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 20, 1999, Vol. 2, No. 75

                    Headlines


* C H I N A   &   H O N G   K O N G *

CLAUSEWITZ RESOURCES MANAGEMENT LIMITED: Winding-up petition
DALIAN INTERNATIONAL: Ditic faces debt payment predicament
DA SHING GARMENT LIMITED: Winding-up petition
FORDLAND (HK) LIMITED: Winding-up petition
FOREVER WISE INVESTMENT LIMITED: Winding-up petition

HANSOL CAPITAL LIMITED: In members' voluntary liquidation
NICESOME INVESTMENTS LIMITED: Winding-up petition


* J A P A N *

HITACHI: Moody's cuts Hitachi's ratings
MITSUI WHARF: Former execs served for role in bankruptcy
NISSAN MOTOR: Losses to be worse than expected


* K O R E A *

ANAM ELECTRONICS: Collapses as lenders take tougher line
DAEWOO GROUP: Daewoo to sell shipbuilding unit
DAEYANG: Starts creditor reconciliation
HANCHANG CHEMISTRY: Finishes workout program
HYUNDAI GROUP: To cut subsidiaries to 20 by year-end

KOREA FIRST BANK: Newbridge set on Korea deal
KYUNGGI CHEMICALS: Collapses as lenders take tougher line


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

MARINDUQUE MINING: Part owners appeal Supreme Court decision
PHILIPPINE AIRLINES: Lucio Tan set to stage return to PAL
PHILIPPINE AIRLINES: Who's pressuring SEC on PAL rehab?
PILIPINO TELEPHONE: Banks propose concessionary interest rates


* T H A I L A N D *

KASET THAI: Restructuring surging ahead despite slaying
RAJDAMRI HOTEL: Goldman Sachs group may stay put on RHC bid


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

CLAUSEWITZ RESOURCES MANAGEMENT LIMITED: Winding-up petition
------------------------------------------------------------
A petition for the winding up of Clausewitz Resources Management
Limited was presented to the High Court on Mar 25 by Perry
Holdings Limited whose registered office is situate at 45th
Floor, Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong,
and the said petition is directed to be heard before the court at  
9:30 am on May 19, 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 Solicitors for the Petitioner, Woo, Kwan,
Lee & Co, Room 2801, 28th Floor, Sun Hung Kai Centre, 30 Harbour
Road, Wanchai, Hong Kong on payment of the regulated charges for
the same.


DALIAN INTERNATIONAL: Ditic faces debt payment predicament
----------------------------------------------------------
According to the South China Morning Post, cash-strapped Ditic
disappointed creditors by saying that they faced a high
possibility of a cut in loan principal repayment. Creditors were
also agitated that officials could not provide a repayment
timetable, sources said.

The message was delivered at a second meeting between Ditic and
representatives from more than 20 domestic and foreign creditor
banks and financial institutions in Dalian.

The meeting was also attended by senior officials from the Dalian
government who told the representatives it would be unrealistic
to think there would be no haircut.

Ditic has foreign debts of about US$140 million.

Even before yesterday's Dalian meeting started, some of the
foreign bankers had been considering of taking Ditic to court.


DA SHING GARMENT LIMITED: Winding-up petition
---------------------------------------------
A petition for the winding up of Da Shing Garment Limited was
presented to the High Court on Mar 12 by Lo Sam Kan of Flat 2727,
Ming Shun Lau, Jat Min Chuen, Shatin, New Territories, and the
said petition is directed to be heard before the court at  9:30
am 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.


FORDLAND (HK) LIMITED: Winding-up petition
------------------------------------------
A petition for the winding up of Fordland (HK) Limited was
presented to the High Court on Mar 22 by Lo Siu Lin of Room 314,
Leung Kit House, Leung King Estate, Tuen Mun, New Territories,
and the said petition is directed to be heard before the court at  
11:00 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.


FOREVER WISE INVESTMENT LIMITED: Winding-up petition
----------------------------------------------------
A petition for the winding up of Hansol Capital Limited was
presented to the High Court on Mar 5 by Guangdong International
Trust and Investment Corporation Hong Kong (Holdings) Limited (In
creditors' voluntary liquidation), 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 Solicitors for the Petitioner, Clifford Chance, 30th Floor,
Jardine House, One Connaught Place, Central, Hong Kong on payment
of the regulated charges for the same.


HANSOL CAPITAL LIMITED: In members' voluntary liquidation
---------------------------------------------------------
The creditors of Hansol Capital Limited, which is being
voluntarily wound up, are required on or before May 3 to send in
their names, addresses and particulars of their debts or claims
to the Liquidator(s) of the said company, Young Hee Schnyder-Kim,
Rooms 1703-04, The Centre Mark, 287-299 Queen's Road, Central,
Hong Kong and if so required by notice in writing from the
liquidator(s), are personally or by their solicitors to come in
and prove their debts or claims at such time and place specified
in such notice, or in default thereof, they will be excluded from
the benefit of any distribution before such debts are proved.


NICESOME INVESTMENTS LIMITED: Winding-up petition
-------------------------------------------------
A petition for the winding up of Nicesome Investments Limited
was presented to the High Court on  Mar 15 by Wong Kam Wah of
Flat E1, 10th Floor, Thai Kong Building, 480-482 Hennessy Road,
Wanchai, Hong Kong, and the said petition is directed to be heard
before the court at 11:00 am 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.


=========
J A P A N  
=========

HITACHI: Moody's cuts Hitachi's ratings
---------------------------------------
The Asian Wall Street Journal reported that Moody's Investor
Service has downgraded the long-term debt rating of Hitachi Ltd.
from AA-3 to A-2. This ratings moves reflects expectations that
Hitachi's restructuring program will take longer than initially
expected to produce results in Japan's weakened economy.  
Approximately 70 percent of Hitachi's consolidated sales are in
Japan.

The article stated that this rating action affects Hitachi's
financially supported subsidiaries: Hitachi America Ltd.,
Hitachi Asia Ltd., Hitachi Finance (UK) PLC, and Hitachi
International (Holland) BV.


MITSUI WHARF: Former execs served for role in bankruptcy
--------------------------------------------------------
Police served fresh arrest warrants Saturday on a former Mitsui
Wharf Co. president and three other former executives on
suspicion they committed aggravated breach of trust by arranging
illegal loans and joint liabilities on guarantees, worth a
combined 3.2 billion yen. Yasuhiro Oishi, 56, his brother and two
other former Mitsui Wharf executives are accused of causing the
damage to the warehousing and harbor transport service company,
which effectively went bankrupt and began legal restructuring  
last fall. (Kyodo News 17-Apr-1999)


NISSAN MOTOR: Losses to be worse than expected
----------------------------------------------
Nissan Motor Corp, Japan's second-largest automaker, reported a
revised estimate of fiscal-year losses on Friday that were more
than three times as bad as the company had anticipated. Nissan
also eliminated the shareholder dividend for the first time since
it became a publicly traded company a half-century ago.

The car company, which recently sold a 36.8 per cent stake to
Renault SA of France for US$5.4 billion (S$9.2 billion), said
estimated losses for the year ending March 31 swelled to 35
billion yen (S$502 million), compared with a projected loss of 10
billion yen it had made earlier. The larger loss was not
surprising to many automotive analysts, who had expected such a
downward revision.

Pretax profits plunged to 15 billion yen from an estimate of 70
billion yen, and sales slid to 3.3 trillion yen from the
previously predicted 3.4 trillion yen. On a consolidated basis,
which includes the results of various Nissan affiliates and
subsidiary companies, the company stuck to its previous estimate
of a 30 billion yen loss.

Nissan said it would eliminate the five yen a share dividend it
had planned to distribute, the first time since the company's
shares were listed in 1951 that it has not paid shareholders.

Renault released a statement saying that the new forecasts were
within the range of estimates it used in completing the deal with
Nissan, which was signed on March 27.

Nissan's official results for the fiscal year will not be
available until May but they confirmed what analysts had
suspected ever since they started seeing sales figures for the
month of March.

Given the bleak sales outlook in Japan, Mr Hanawa said Nissan was
considering working to decrease production to 1.5 million
vehicles by 2003, rather than the 1.7 million target it had
previously set. (New York Times and Singapore Business Times
19-Apr-1999)


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

ANAM ELECTRONICS: Collapses as lenders take tougher line
--------------------------------------------------------
According to the South China Morning Post, the South Korean
government seems to have changed its policies to focus on
corporate restructuring rather than keeping non-viable firms
afloat, said an economist at the Daewoo Economic Research
Institute. With this stance, some companies have been forced to
go under.

Anam Electronics' creditors last month refused to extend the
television and audio-maker's loan repayments. It was forced to
apply for receivership.

Kyunggi Chemicals' bankers also cancelled plans to give the
fertiliser-maker more time to pay its debt, pushing it into
bankruptcy.


DAEWOO GROUP: Daewoo to sell shipbuilding unit
----------------------------------------------
South Korea's Daewoo Group said on Monday it would sell its
prized shipbuilding unit, two Hilton hotels and several
commercial vehicle units for a total of about $4.12 billion. The
sale, announced prior to a press conference by Daewoo chairman
Kim Woo-choong, came amid concerns the country's second largest
group in terms of assets was heading for financial crisis.

The group said it was seeking to sell the shipbuilding division
to Mitsui & Co. Ltd or other Japanese firms.

"Daewoo plans to raise 9.14 trillion won additionally through
asset sales to secure solid international competitiveness," said
the statement.

Sales of shareholdings in Dacom and other telecommunications
companies would bring in an estimated 660 billion won to the
group, it said.

A Daewoo official earlier said the group was preparing a
restructuring plan to brush off concerns about its financial
troubles, sparked by Standard & Poor's downgrade last week of the
credit rating of Daewoo Corp. to single-'B'-minus from single-
'B'. S&P said the downgrade reflected mounting pressure on
Daewoo's credit quality stemming from its rising debt leverage.

Creditor banks last Friday said the Daewoo Group had not done
enough to reduce debts and urged the group to move faster in its
restructuring efforts.

Daewoo chairman Kim Woo-choong would sell 300 billion won worth
of his personal stock holdings to invest in the group's car-
making unit, unlisted Daewoo Motor Co., the statement said. The
group also said it wanted to sell telecommunications business
Daewoo Telecom to Newbridge Capital of the United States for 400
billion won and was seeking to sell Orion Electric's Mexico Braun
plant to France's Thomson Group for 375 billion won.

The large-sized engine, truck and bus divisions of Daewoo Motor
would be sold to Scania and other European companies for 1.13
trillion won, the statement said. The group also planned to sell
its stake in Kyobo Life Insurance Co. for 988 billion won and
Daewoo's Hilton hotels in Seoul and Kyongju for 300 billion won.
(Reuters 19-Apr-1999)


DAEYANG: Starts creditor reconciliation
---------------------------------------
The Taejon District Court advertised in the Korean language Maeil
Kyungje that it granted a credit reconciliation program to
Daeyang Corporation. The company's address is 117-6 Dochon-li,
Woosung-myon, Kongju. The representative director is Jung Oak-
Jin.


HANCHANG CHEMISTRY: Finishes workout program
--------------------------------------------
The Korean language Maeil Kyungje reported that Hanchang
Chemistry Company finished its workout program (first among other
workout companies) by a program of attracting foreign capital.

Generally, a workout procedure in Korea is aimed at helping firms
hit by temporary liquidity shortages to regain financial health
and competitiveness through debt relief and creditor offered
restructuring programs. It reduces banks' non-performing loans by
improving the borrowers' debt payment capabilities. However, the
workout can also result in the shareholders being asked to reduce
capital and the disposal of unprofitable assets and subsidiaries.  
Furthermore, there is a compulsory shake-up of the top management
of "workout companies".


HYUNDAI GROUP: To cut subsidiaries to 20 by year-end
----------------------------------------------------
Hyundai Group, the nation's largest family-owned conglomerate,
said yesterday it will reduce the number of subsidiaries from the
current 49 to 20 by the end of this year. The restructuring
program to sell 29 subsidiaries drew keen public interest because
the size of the retooling was far greater than its earlier pledge
to shed 20 affiliates.

"Except for five core businesses, including automobile,
construction and electronics, other subsidiaries will be sold
from the group through selloff to foreign investors by the end of
the year,'' said a top official at Hyundai. The number of
Hyundai's subsidiaries is expected to be around 20 as a result of
the drastic restructuring, he added. He also noted that about 20
affiliates of Hyundai Group are now in talks with foreign
investors for possible selloff.

Sources said that Hyundai plans to double the initial target
capital increase of 5 trillion to 10 trillion in an effort to
reduce its average debt-to-equity ratio to below 200 percent by
the end of the year. Hyundai Motor, the conglomerate's flagship
company, is scheduled to be sold from the group in 2001 while
other key affiliates will go independent before the year 2005.  
Hyundai Group raised its capital by 5.8 trillion won through a
rights offering in the first quarter. (Korea Times 19-Apr-1999)


KOREA FIRST BANK: Newbridge set on Korea deal
---------------------------------------------
Newbridge Capital, the US investment firm, said it was firmly
committed to its takeover of Korea First Bank and had no
intention of abandoning the deal, which is considered a crucial
step in the restructuring of South Korea's troubled banking
sector.

Richard Blum and David Bonderman, co-chairmen of Newbridge, flew
to Seoul to resolve a dispute over the valuation of the bank's
assets that has delayed completion of the sale. Newbridge signed
a memorandum of understanding in December to buy the bank.

Newbridge is asking that the value of some questionable loans be
reduced, which would force the government to provide more funds
for recapitalisation after it injected Won1,500bn ($1.2bn) last
year to save Korea First from collapse. (Financial Times
19-Apr-1999)


KYUNGGI CHEMICALS: Collapses as lenders take tougher line
---------------------------------------------------------
According to the South China Morning Post, the South Korean
government seems to have changed its policies to focus on
corporate restructuring rather than keeping non-viable firms
afloat, said an economist at the Daewoo Economic Research
Institute. With this stance, some companies have been forced to
go under.

Anam Electronics' creditors last month refused to extend the
television and audio-maker's loan repayments. It was forced to
apply for receivership.

Kyunggi Chemicals' bankers also cancelled plans to give the
fertiliser-maker more time to pay its debt, pushing it into
bankruptcy.


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

MARINDUQUE MINING: Part owners appeal Supreme Court decision
------------------------------------------------------------
The minority stockholders of a defunct mining firm have appealed
the Supreme Court's (SC) decision upholding the legality of its
1984 closure by the government. In a motion, seven part owners of
Marinduque Mining and Industrial Corporation (MMIC) asked the
High Tribunal to reconsider its affirmation on the shutdown by
the Asset Privatization Trust (APT). The part owners have a
pending claim for 4.5 billion Philippine pesos (PhP) in damages.

Appellants Jesus Cabarrus, Sr., Jesus Cabarrus, Jr., Jaime
Cabarrus, Jose Miguel Cabarrus and Alejandro Pastor, Jr., Antonio
Miranda and Manuel Antonio said the government -- through the APT
-- must allow MMIC investors to recoup their share. The SC then
ruled the government had a "legitimate right" to seize MMIC
assets as it failed to pay its PhP22-billion debt to the
Philippine National Bank (PNB) and the Development Bank of the
Philippines (DBP).

The government authorized MMIC in 1968 to exclusively develop,
explore and use the mineral deposits in the Surigao Mineral
Reservation. The reservation was rich in copper and gold
deposits. It even financed defunct mining firm's operation in the
'60s and '70s by purchasing its bonds and extending its foreign
loan guarantees. (BusinessWorld 19-Apr-1999)


PHILIPPINE AIRLINES: Lucio Tan set to stage return to PAL
---------------------------------------------------------
The beleaguered management of Philippine Airlines, Inc. (PAL) and
its team of corporate advisers enter the eye of the storm as
company chairman Lucio Tan attempts to revive the airline's old
board of directors today in a bid to retake the flag carrier's
helm. BusinessWorld sources at PAL revealed that Mr. Tan is set
to reconvene the airline's 14-man board of directors in a special
meeting this morning, allegedly to reorganize the flag carrier
management by "easing out" the five-member Regent Star Services
Ltd. (RSS) corporate advisory team.

It is not clear whether the alleged special meeting has anything
to do with the demand by PAL's interim rehabilitation receiver to
know if Mr. Tan will participate in the infusion of the required
$200-million equity into the beleaguered airline. Mr. Tan had
failed to give a definite answer on April 15, the deadline set by
the interim body.

Renato Francisco, the chairman of the interim body, said over the
weekend he will consult with the Securities and Exchange
Commission (SEC) on the interim body's next move given that they
have not heard from Mr. Tan as of last Friday. Early last week,
the interim receiver wrote Mr. Tan formally asking him to
officially state his intentions about PAL. The body, in fact,
gave Mr. Tan up to April 15 to send word to both the SEC and the
members of the body. As of April 16, however, Mr. Tan has not
informed the interim body about his plans, Mr. Francisco said.

Sources had hinted, however, that Mr. Tan is also expected to
announce at the special meeting today whether he would exercise
his preemptive right to participate in the $200-million equity
infusion needed for the flag carrier's rehabilitation. The
sources also said that among the items in the agenda would be the
reduction in par value of the airline's existing shares to 1
Philippine cent from 5 Philippine pesos (PhP) and the approval of
the $200 million increase in the flag carrier's capitalization.

It was also alleged that Mr. Tan already has a list of new
corporate officers who he wants installed in the airline
management. Meanwhile, current senior vice president for finance
and CFO Andrew Huang would also be "returned" to his old post as
the airline's corporate finance head, sources claimed.

It was said that PAL chief corporate adviser and interim
rehabilitation receiver (IRR) member Peter Foster was not even
invited to this morning's special board meeting. A high-ranking
PAL official, however, told BusinessWorld that Mr. Foster and
other RSS advisers "are aware of the meeting," but that the issue
of their five-year contract with the airline "was not on the
board meeting agenda."

In an earlier development, the SEC last Friday gave PAL's
unsecured creditors another 15 days to submit their comments on
whether PAL's revised rehabilitation plan is workable. The SEC
hearing panel chaired by Mr. Yasay met with PAL's unsecured
creditors as part of a series of meetings to get their comments
on the revised plan.

Today, the SEC will meet with PAL's secured creditors.
(BusinessWorld 19-Apr-1999)


PHILIPPINE AIRLINES: Who's pressuring SEC on PAL rehab?
-------------------------------------------------------
Amid the leadership struggle at Philippine Airlines, Inc. (PAL),
President Joseph Estrada apparently has made it very clear to his
officials where his administration stands when it comes to the
flag carrier's rehabilitation. Well-placed BusinessWorld sources
said Mr. Estrada allegedly gave Securities and Exchange Commision
(SEC) chairman Perfecto Yasay, Jr. a "dressing down" last Friday
for issuing the day before an order rejecting PAL's amended
rehabilitation plan. Mr. Yasay had called the PAL rehabilitation
proposal "unacceptable," "too unclear," "nebulous" and "fraught
with generalities."

Sources further alleged it was this incident with Mr. Estrada
which prompted Mr. Yasay to issue an order on the same day
"clarifying" the SEC's April 15 decision. In the order, Mr. Yasay
categorically stated that the SEC hearing panel "did not reject
the plan, but, simply requires PAL to clarify certain
ambiguities/generalities in some aspects of the Plan." Mr. Yasay
explained he came out with the clarificatory order because the
April 15 decision was "being interpreted by certain
quarters/creditors as amounting to a rejection." He said the
hearing panel deemed it "proper" to "correct this impression."

Mr. Yasay gave the PAL management and its interim rehabilitation
receiver until May 4 to submit a response outlining the specifics
required by the SEC's three-man hearing panel. (BusinessWorld 19-
Apr-1999)


PILIPINO TELEPHONE: Banks propose concessionary interest rates
--------------------------------------------------------------
Creditor banks of debt-ridden Pilipino Telephone Corp. (Piltel)
have reached a consensus to charge lower interest rates on their
loans to the cellular firm in lieu of the proposed nonpayment of
interest for three years, a source from one of the creditor banks
said. The source said interest, or the additional amount a
borrower pays for the use of money lent by banks, "must always be
paid so the loans will not be classified as past due."

Banks have proposed an interest rate of 1% plus the prevailing
91-day Treasury bill rate on Philippine peso (PhP) loans and 1%
plus the London or Singapore interbank offered rate (LIBOR or
SIBOR) on dollar-denominated loans, the source said.

The 91-day T-bill rate, the benchmark used to price their loans
to borrowers, last week settled at 10.972%. With this rate,
Piltel's peso loans will have an interest rate of 11.972%. Under
a "gentleman's agreement," local banks will charge 1.5% and 6.5%
more over the 91-day T-bill rate to prime and non-prime
borrowers, respectively. With the proposed interest rate of 1%
plus the T-bill rate, Piltel would be enjoying concessionary
rates, even better than what the less risky or prime borrowers
could avail.

In its proposed rehabilitation plan, Piltel pushed for a three-
year grace period on interest payment. "That is equivalent to an
interest moratorium," the source said. Banks, however, are not
agreeable to the grace period. "This is a non-negotiable stand...
No way can they avoid not paying. There should be no grace
period," the source stressed.

Creditor banks have also proposed that 50% of the loans be turned
into Philippine Long Distance Telephone Co. (PLDT) convertible
bonds, which has an existing 57.76% stake in Piltel, the source
said. Under this, banks will have an option of converting their
loans into PLDT preferred shares within or at the end of seven
years. The remaining 50% of the loans have a 10-year maturity,
the source added. Piltel originally proposed that one-third of
the loans will be converted into convertible PLDT bonds. Another
one-third will have a repayment term of 10 years and the
remainder will have a 15-year maturity.

Including its $279-million debt to Marubeni, Piltel's obligations
total PhP34.9 billion. One-third is owed to creditor banks and
the other third to bond holders. Most of its debts are reportedly
unsecured. Banks became more open to negotiations for Piltel's
debt restructuring after PLDT said it will acquire 99% of its
subsidiary through a buyout. The telecommunications leader
earlier expressed its support to Piltel through a letter of
comfort to creditor banks.

The Land Bank of the Philippines has the biggest exposure to the
company with approximately PhP2 billion in loans. The other big
lenders are the Chase Manhattan Bank N.A., Bank of America NT &
SA, Philippine Commercial International Bank, Far East Bank and
Trust Co., Deutsche Bank, Bank of the Philippine Islands and
Credit Agricole Indosuez.

Other creditors are Banco Santander, Bank of Commerce, China
Banking Corp., Equitable Banking Corp., Global Bank, HSBC,
Philippine Banking Corp., United Coconut Planters Bank, ING Bank,
Banque National de Paris, Citibank N.A., Credit Lyonnaise,
Marubeni, Standard Chartered Bank, and the US Export-Import Bank.
(BusinessWorld 19-Apr-1999)


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

KASET THAI: Restructuring surging ahead despite slaying
-------------------------------------------------------
Despite the reaction of horror immediately after a pillion-riding
automatic-pistol-toting professional assassin allegedly hired by
disaffected creditors gunned down a well-seasoned Australian
restructuring professional, the restructuring-consulting business
in Thailand has hardly skipped a beat and is rolling full steam
ahead. Although immediately after the assassination of Deloitte
Touche restructuring partner Michael Wansley the streets of
Bangkok were filled with threats that foreign restructuring
professionals, particularly from Australia, would pull out,
insiders say that cooler heads have prevailed.

The Nation has learned that Deloitte (or South Sathorn Planner)
officials are back on all jobs, albeit with more concern for
personal safety and protection. With the authorities' swift
apprehension of the alleged culprits and masterminds, many
unsettled psyches have been apparently put at ease.

Despite Wansley's slaying, none of Deloitte's restructuring
competitors apparently skipped a beat. The Nation has learned
that every restructuring institution is going full-steam ahead
bringing in more new crews and quickly signing up more office
space. Especially with the recent bankruptcy and foreclosure
laws' passage through the Senate, no one wants to miss the
expected gold rush.

Other public accounting firms such as PricewaterhouseCoopers,
Arthur Andersen and KPMG are reportedly expanding facilities and
building restructuring teams as quickly as possible. PwC is
moving into brand-new facilities at the Bangkok City Tower after
being vigorously wooed by Empire Towers. Likewise international
law firms are quickly beefing up their staffs and building large
offices to house them. White & Case, a major New York law firm
with more than 850 lawyers, has been quickly but quietly
expanding its offices at Gaysorn Place.

Established in Bangkok in 1992, White & Case has slowly taken
over some of the space previously occupied by One Asset
Management Co. Elizabeth Redfern, White & Case's Asia-Pacific
marketing and communications manager, said the firm was
responding to the current Asian economic turmoil by establishing
an Asian Restructuring Group. "We now have more than 60 staff in
Bangkok," she said. Other law firms such as Johnson, Stokes and
Master are also reportedly looking to expand their facilities,
all in response to the current need for restructuring
professionals. (The Nation 19-Apr-1999)


RAJDAMRI HOTEL: Goldman Sachs group may stay put on RHC bid
-----------------------------------------------------------
A consortium led by Goldman Sachs (Asia) is not in a hurry to
raise the tender offer price for Rajdamri Hotel (RHC) after its
rival Royal Garden Resort (RGR) increased the tender offer price
by 4 baht to 42 baht per share for an additional 10-percent stake
in RHC, according to Asset Plus Securities President Kongkiat
Opaswongkarn. Kongkiat told Business Day yesterday he felt
Goldman Sachs' offer of 38 baht per share was appropriate. Asset
Plus is a financial advisor to Goldman Sachs (Asia) in conducting
a tender offer to control a majority stake in RHC.

The takeover war between RGR and Goldman Sachs (Asia) over RHC
intensified following RGR's decision to raise tender offer price
from previously proposed 27 baht to 42 baht in a countermove to
Goldman Sachs' acquisition of 32.2 percent stake in RHC from
Runsway and Rantack of Japan at 38 baht per share.

According to RHC's shareholders structure, 32.3 percent is held
by Goldman Sachs (Asia), 24.72 percent by RGR, 15 percent by Thai
Farmers Bank and the Crown Property Bureau and 28 percent by
small investors. Tender offer period on both contending parties
were in the same period, starting from Tuesday April 20 ended
May 26. (Business Day [Thailand] 19-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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