TCRAP_Public/990421.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      

      Wednesday, April 21, 1999, Vol. 2, No. 76

                    Headlines


* C H I N A   &   H O N G   K O N G *

FINEXCO (H.K.) LIMITED: In members' voluntary liquidation
FUTURE TRADE LIMITED: In members' voluntary liquidation
GUANGDONG INTERNATIONAL: Court to start liquidation proceedings
GUANGZHOU INTERNATIONAL: Gzitic arm wins court's reprieve
KING HERO ENTERPRISES LIMITED: Winding-up petition

MODERN PHARM LIMITED: Notice to creditors to prove debts
PROTECT REMEDIAL ENGINEERING: Winding-up petition
ROKER INVESTMENTS LIMITED: In members' voluntary liquidation
WING SHING GARMENT FACTORY: Winding-up petition


* J A P A N *

CHUBU ELECTRIC POWER: Moody's cuts ratings
KANSAI ELECTRIC POWER: Moody's cuts ratings
LONG TERM CREDIT: Gov't may fail to find buyer by end of April
                         
LONG TERM CREDIT: Suspected of ignoring self-assessment rules
                    
NIPPON CREDIT: IBJ execs sued by shareholders over failed NCB
                      

NISSAN MOTOR: Nissan production lines may be cut
TOKYO ELECTRIC POWER: Moody's cuts ratings


* K O R E A *

JINDU INDUSTRY: Starts creditor reconciliation


* M A L A Y S I A *

RENONG BHD: KL official defends Renong debt restructuring plan


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

PHILIPPINE AIRLINES: Lucio Tan to infuse $200m to save PAL


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

FINEXCO (H.K.) LIMITED: In members' voluntary liquidation
---------------------------------------------------------
The creditors of Finexco (H.K.) Limited, which is being
voluntarily wound up, are required on or before May 17 to send in
their names, addresses and particulars of their debts or claims
to the Liquidator(s) of the said company, G W Hopkinson, T W H
Lewis, Prince's Building, 8th Floor, 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 deemed to waive all of such
debts or claims and the liquidators will be entitled seven days
after the above date, to distribute the funds available or any
part thereof to the Members.


FUTURE TRADE LIMITED: In members' voluntary liquidation
-------------------------------------------------------
The creditors of Future Trade Limited, which is being
voluntarily wound up, are required on or before May 17 to send in
their names, addresses and particulars of their debts or claims
to the Liquidator(s) of the said company, M G Bond, I O'Brien at
Prince's Building, 8th Floor, Hong Kong P Y K Tsang, Prince's
Building, 8th Floor, Hong Kongk, 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 deemed to waive all of such debts or claims and the
liquidators will be entitled seven days after the above date, to
distribute the funds available or any part thereof to the
Members.


GUANGDONG INTERNATIONAL: Court to start liquidation proceedings
---------------------------------------------------------------
Liquidation proceedings for China's bankrupt Guangdong
International Trust and Investment Corp. (GITIC) begin with a
series of meetings set this week, a mainland court source said
yesterday. He said the Intermediate People's Court in Guangzhou
city will convene a creditors' meeting Wednesday and Thursday for
winding up GITIC, the first mainland institution to be declared
bankrupt in half a century of communist rule. The meeting will
follow a similar creditors' meeting on Tuesday in Shenzhen at the
border with Hong Kong which will focus on the winding up of its
subsidiary in the city, the source in Guangzhou said over the
telephone. A press conference will be held in Guangzhou Thursday
to disclose the results of the creditors' meeting.

The meeting will deal largely with the recommendation of a court-
appointed clearance team for the disposal of company assets, as
well as the formation of a steering committee to facilitate
communication between the court and creditors, press reports
said.

The South China Morning Post, citing foreign bankers, said the
steering committee will consist of nine representatives, who are
to be nominated by the court-appointed liquidation committee and
approved by a general vote of creditors. Nominees are expected to
include foreign and domestic institutions holding the greatest
exposure to the firm, the daily said. (Agence France-Presse and
Business Day 20-Apr-1999)


GUANGZHOU INTERNATIONAL: Gzitic arm wins court's reprieve
---------------------------------------------------------
The High Court yesterday ordered the postponement of a hearing to
wind up the Hong Kong commercial arm of Guangzhou International
Trust and Investment Corp (Gzitic) to allow financial creditors a
chance to study its restructuring proposal. Mrs Justice Doreen Le
Pichon said the hearing on Guangzhou Finance would resume on June
21. This would provide time for creditors to study a report by
Gzitic's financial adviser, PricewaterhouseCoopers, expected to
be ready by June 8.

Members of the US$30 million loan syndicate that filed the wind-
up petition agreed to the adjournment, requested by Gzitic. The
loan was arranged by Bankers Trust Co Hong Kong and Bank of
Communications Singapore.

A lawyer for Gzitic said it would need time for the financial
adviser to prepare the financial review report and that an
overwhelming majority of Guangzhou Finance's creditors would not
want the firm to be wound up. PricewaterhouseCoopers partner Ted
Osborn said the postponement would enable the report, which would
include some preliminary restructuring options and directions, to
be prepared for creditors. These options would then be discussed
with the creditors, he said.

Unaudited data showed Guangzhou Finance owed $343 million in
loans and advances from foreign banks and financial institutions
and $636 million in borrowings and deposits in the mainland.
(South China Morning Post 20-Apr-1999)


KING HERO ENTERPRISES LIMITED: Winding-up petition
--------------------------------------------------
A petition for the winding up of King Hero Enterprises Limited
was presented to the High Court on Mar 4 by Ng Tin Sang of Room
A703, Mei Wai House, Mei Lam Estate, Shatin, New Terrioties, 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.


MODERN PHARM LIMITED: Notice to creditors to prove debts
--------------------------------------------------------
The creditors of Modern Pharm Limited, which is being
voluntarily wound up, are required on or before May 21 to send in
their names, addresses and particulars of their debts or claims
to the Liquidators of the said company, Kong Chi How, Johnson
Stokes & Master at 18th Floor, Prince's Building, 10 Chater Road,
Hong Kong at 29th Floor, Wing On Centre, 111 Connaught Road
Central, Hong Kong and if so required by notice in writing from
the liquidators, 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.


PROTECT REMEDIAL ENGINEERING: Winding-up petition
-------------------------------------------------
A petition for the winding up of Protect Remedial Engineering
Company Limited was presented to the High Court on Mar 3 by Tsang
Chai Hee of Flat D, 34th Floor, Tower 8, Tai Hing Garden, Phase
2, 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 Solicitors for the Petitioner, Paul C.W. Tse CO., at Rooms
2106-2110, 21st Floor, Lane Crawford House, 70 Queen's Road
Central, Hong Kong on payment of the regulated charges for the
same.


ROKER INVESTMENTS LIMITED: In members' voluntary liquidation
------------------------------------------------------------
The creditors of Roker Investments 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, G W Hopkinson, B
Nikzad, Prince's Building, 8th Floor, 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 deemed to waive all of such
debts or claims and the liquidators will be entitled seven days
after the above date, to distribute the funds available or any
part thereof to the Members.


WING SHING GARMENT FACTORY: Winding-up petition
-----------------------------------------------
A petition for the winding up of Wing Shing Garment Factory
Limited was presented to the High Court on Feb 25 by Nan Ya
Plastics (Hong Kong) Corporation Limited whose registered office
is situated at 7th Floor, Citicorp Centre, No. 18 Whitfield Road,
Causeway Bay, Hong Kong, 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 Solicitors
for the Petitioner, Kwok, Ng & Chan, 9th Floor, Dah Sing Life
Building, 99 Des Voeux Road Central, Hong Kong on payment of the
regulated charges for the same.


=========
J A P A N  
=========

CHUBU ELECTRIC POWER: Moody's cuts ratings
------------------------------------------
The Korea Herald printed an Agence France-Press (AFP) report that
the U.S. ratings agency Moody's Investors Service cut its ratings
for the Chubu Electric Power Co. from Aaa to Aa2.

Moody's said it was concerned that the Japanese government's
initiatives to further deregulate the nation's electric utility
business may lead to changes in the current favorable industry
operating environment, the report stated.


KANSAI ELECTRIC POWER: Moody's cuts ratings
-------------------------------------------
The Korea Herald printed an Agence France-Press (AFP) report that
the U.S. ratings agency Moody's Investors Service cut its ratings
for the Kansai Electric Power Co. from Aaa to Aa2.

Moody's said it was concerned that the Japanese government's
initiatives to further deregulate the nation's electric utility
business may lead to changes in the current favorable industry
operating environment, the report stated.


LONG TERM CREDIT: Gov't may fail to find buyer by end of April
                         
--------------------------------------------------------------
Hakuo Yanagisawa, state minister in charge of financial
reconstruction, said Tuesday the government may fail to find a
buyer of the state-owned Long-Term Credit Bank of Japan (LTCB) by
the end-of-April deadline. Yanagisawa, who also serves as chief
of the Financial Reconstruction Commission (FRC), had said he
hoped to find a financial institution to buy LTCB's operations by
the end of April.

In other remarks at the press conference, Yanagisawa said more
than one institutions have submitted inquiries about taking over
LTCB's operations. LTCB has been under state control since last
October, when the government recognized it as insolvent with huge
bad loans. Yanagisawa's FRC signed a contract with Goldman Sachs
and Co. on Feb. 1 to have the U.S. investment bank serve as an
intermediary in the search for a buyer of LTCB. Under the deal,
Goldman Sachs will gain larger rewards if LTCB's purchaser is  
found by the end of April. (Kyodo News 19-Apr-1999)


LONG TERM CREDIT: Suspected of ignoring self-assessment rules
                    
-------------------------------------------------------------
Long-Term Credit Bank of Japan, now under state control, is
suspected of ignoring official rules on the self-assessment of
loans and covered up bad loans. LTCB's self-assessment of loans
for the year to March 1998 lacked objectivity and did not conform
to a Finance Ministry directive and the guidelines of the
Japanese Institute of Certified Public Accountants, informed  
sources said.

Financial institutions in Japan are required to abide by the
directive and guidelines in determining bad loan write-offs and
loan-loss provisions. The Tokyo District Public Prosecutors
Office and the Tokyo Metropolitan Police Department are looking
into suspicions that the bank window-dressed financial statements
in violation of the Securities and Exchange Law and the  
Commercial Code. LTCB was declared insolvent and put under
temporary state control last October. (Jiji Press English News
19-Apr-1999)


NIPPON CREDIT: IBJ execs sued by shareholders over failed NCB
                      
-------------------------------------------------------------
Two Industrial Bank of Japan (IBJ) shareholders filed a suit
Monday against 35 current and former senior executives of the  
bank, including Chairman Yo Kurosawa and President Masao
Nishimura, over financial aid it extended to the failed Nippon
Credit Bank (NCB) in the spring of 1997. The shareholders -- one
woman and one company in Tokyo -- are demanding that the
executives who were in charge at the time repay the 17 billion
yen the bank invested in NCB in April 1997, blaming lax decision-
making for causing damage to IBJ. NCB effectively went bankrupt
and was nationalized in December last year.

This is the first time shareholders have filed a suit with the
aim of clarifying the responsibilities of executives of financial
institutions that joined in the rescue of NCB. Among 34 financial
institutions which offered financial assistance to the troubled
NCB in the form of new share purchases at the request of the
Finance Ministry, IBJ provided the largest amount of help.

In a written complaint lodged with the Tokyo District Court, the
plaintiffs said IBJ executives at that time "took part in the
rescue without resistance and invested the money without
sufficiently checking NCB's financial status." Because NCB was
put under the state's control, IBJ's investment became valueless,
the plaintiffs added.

In February, the plaintiffs urged incumbent IBJ executives to
file a damages suit against the executives who were in charge at
the time. As they did not take action, the shareholders instead
launched the suit, they said. (Kyodo News 19-Apr-1999)


NISSAN MOTOR: Nissan production lines may be cut
------------------------------------------------
The head of Nissan Motor warned he may cut production lines in a
desperate effort to revive the troubled car firm's fortunes.
Nissan president Yoshikazu Hanawa said no plant would be shut,
but admitted he was considering partial plant closures. Japan's
No 2 car-maker, which last month signed a tie-up with France's
Renault, is expecting to post a 30 billion yen (about HK$1.97
billion) group net loss for the year to March.

Mr Hanawa pledged to cut 1,000 billion yen in costs by March
2001, and to use the huge cash infusion from Renault to repay
debt. He said 5,000 non-manufacturing jobs would go, but insisted
the cuts would come through attrition and not redundancies, which
are anathema in Japan.

He admitted his firm had made mistakes. "We should have done what
we are doing now a long time ago. We assumed we would be able to
make a good number of sales to support capacity, but that is not
the way it turned out," he said. (South China Morning Post 20-
Apr-1999)


TOKYO ELECTRIC POWER: Moody's cuts ratings
------------------------------------------
The Korea Herald printed an Agence France-Press (AFP) report that
the U.S. ratings agency Moody's Investors Service cut its ratings
for the Tokyo Electric Power Co. from Aaa to Aa2.

Tokyo Electric Power Co. is the world's largest private electric
power company. Moody's said it was concerned that the Japanese
government's initiatives to further deregulate the nation's
electric utility business may lead to changes in the current
favorable industry operating environment, the report stated.


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

JINDU INDUSTRY: Starts creditor reconciliation
----------------------------------------------
The Seoul District Court advertised in the Korean language Maeil
Kyungje that the Jindu Industry Corporation started its creditor
reconciliation procedure. The creditors have until May 4th, 1999
to file their claims. The company's address is 348 Keumhyun-li,
Kasan-myun, Pochon, Kyunggi Province. The representative director
is Mr. Yang Man-ji.


===============
M A L A Y S I A
===============

RENONG BHD: KL official defends Renong debt restructuring plan
--------------------------------------------------------------
The head of Malaysia's debt restructuring agency yesterday
defended a plan to restructure Renong Bhd's debt and urged
critics to come forward. Corporate Debt Restructuring Committee
(CDRC) chairman C Rajandram was asked on the margins of a
business conference in the capital if he believed Renong's plan
to restructure its debts by June was favourable.

"Why should it not be favourable? That's a question I want to
ask. What is wrong? The creditors are getting paid off, so
minorities are being taken care of well," he told reporters.

Last month, Renong and the CDRC proposed an 8.41 billion
Malaysian ringgit (S$3.8 billion) bond issue to repay debts of
Renong and its associate United Engineers (Malaysia) Bhd (UEM).
The bonds would be issued by UEM's wholly-owned toll road firm
Projek Lebuhraya Utara Selatan (Plus), which operates the 848 km
highway bisecting Malaysia from Singapore in the south to
Thailand in the north.

Earlier this month, Renong was reported to have met potential
buyers of the proposed bonds including state oil company
Petroliam Nasional Bhd (Petronas) and the government-run
Employees Provident Fund. Before Renong announced its debt
restructuring plan, the government extended Plus' highway toll
concession period by 12 years.

The CDRC chief said the agency had to date received applications
from 52 companies seeking debt restructuring. Four of the
companies withdrew, leaving 48, he said. The 48 companies have
total aggregate debt of about RM25 billion, he said. (Reuters and
Singapore Business Times 20-Apr-1999)


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

PHILIPPINE AIRLINES: Lucio Tan to infuse $200m to save PAL
----------------------------------------------------------
Philippine Airlines (PAL) majority owner Lucio Tan yesterday
pledged to infuse the needed $200 million fresh equity to keep
the debt-ridden airline afloat. The Filipino-Chinese tycoon has
offered to immediately infuse $100 million and another $100
million early next month. Tan told newsmen yesterday after a
special meeting of the PAL board of directors that he would put
up a group of investors that would infuse fresh funds into PAL.
He declined, however, to identify the new investors.

Tan's offer was made a week after the Securities and Exchange
Commission (SEC) issued twin orders requiring PAL to identify the
investors willing to infuse $200 million into the ailing national
flag carrier. Under its amended rehabilitation plan submitted to
the SEC, PAL has to put up $200 million by June 4.

Rolando Estabillo, PAL spokesman, said the $100 million would be
placed in escrow, subject to certain conditions, including
similar commitments from the government and airlines' creditors
and unions to save PAL. The other $100 million would be infused
on or before the first week of May.

Finance secretary Edgardo Espiritu, however, said Tan is not
asking for capital infusion from the government. He just wants
"the restoration of the rights (of PAL that were) withdrawn by
the previous government." These include the revocation or non-
extension of the permits extended by the previous administration
to foreign carriers. Tan, he said, is also asking the government
to limit the passenger capacity of foreign airlines flying from
Manila to HongKong, Korea and Taiwan.

With the capital infusion, Estabillo said Tan would now have a 90
percent stake in the firm. Tan's previous stake in PAL was
reduced to almost zero due to the losses suffered by the airline.

At yesterday's meeting, Tan was reinstated as chief executive
officer, replacing Luis Juan Virata, who will remain a PAL
director. Tan likewise retained the services of Peter Foster as
senior adviser, although there are reports that Foster and four
other ex-Cathay Airlines executives would be replaced. Espiritu
said Tan is looking for a new team which would manage PAL. He
said Tan has disagreements with Foster and company on their
contracts.

Meanwhile, the SEC has approved the request of the PAL interim
rehabilitation receiver for the airline to pay $9.16 million to
15 leasing firms to prevent the seizure of PAL's aircraft.
(Manila Times 20-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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            * * * End of Transmission * * *