/raid1/www/Hosts/bankrupt/TCRAP_Public/990830.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, August 30, 1999, Vol. 2, No. 168

                            Headlines


* C H I N A  &  H O N G  K O N G *

ARTFIELD GROUP: Posts annual loss
COASTAL REALTY GROUP: Posts annual loss
JILIN CHEMICAL GROUP: Seeks debt-to-equity swap          
KTP HOLDINGS: Posts annual loss for second year
LUOYANG GLASS: Posts first-half loss
TIANJIN HOLDINGS: Loan payment overdue to it
VANDA SYSTEMS & COMMO.: Posts annual loss


* J A P A N *

ASHIKAGA BANK: To seek gov't capital to reduce NPLs
BANK OF THE RYUKYUS: To seek gov't capital to reduce NPLs
HIROSHIMA SOGO BANK: To seek gov't capital to reduce NPLs
HOKURIKU BANK: To seek gov't capital to reduce NPLs


* K O R E A *

ARAB BANK: Audit uncovers tax evasion
BANQUE PARIBAS: Audit uncovers tax evasion
DAEWOO GROUP: Rescue plan freezes debt
DAEWOO GROUP: Succumbs to workout filing
DAEWOO GROUP: FSC says no guarantees for foreign creditors
DAEWOO GROUP: Union workers protest workout programs   
DAEWOO GROUP: Sale of Seoul Hilton to GMH crumbles
STANDARD CHARTERED BANK: Audit uncovers tax evasion
TOKYO-MITSUBISHI BANK: Audit uncovers tax evasion


* M A L A Y S I A *

FABER GROUP: To wind up several subsidiaries, reform
HEXAGON HOLDINGS BHD: Posts annual loss
KFC HOLDINGS: KUB Holdings front-runner to acquire
MALAYSIA AICA BHD: Posts loss, liquidates stake in co.


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

UNIWIDE HOLDINGS: Another suitor appears


* S I N G A P O R E *

FORM HOLDINGS: Gets nod for restructuring
ITE ELECTRIC: Posts lower first-half loss than expected
LIANG COURT HOLDINGS: Posts first-half loss              
SIN SOON HUAT: Posts annual loss
THAKRAL CORP.: Hires financial advisor for restructure


* T H A I L A N D *

ITALIAN-THAI DEVEL.: Considers capital increase to cut debt
KRUNG THAI BANK: To partner in asset mgmt company
KULTHORN KIRBY: Gearing up for major restructuring
RADANASIN BANK: UOB getting closer to acquiring stake
THAI LIFE: Appraisal licence suspended
THAI MARITIME NAVIGATION: To be sold if privitization fails


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

ARTFIELD GROUP: Posts annual loss
---------------------------------
Artfield Group has made a loss of $14.87M in the year ended
March 31 due to $22.65Min provisions.  The company recorded
a profit of $21.49M a year ago.  No final dividend was
given, the same as a year ago.

COASTAL REALTY GROUP: Posts annual loss
---------------------------------------
Coastal Realty Group has been driven to a loss of $228.79M
for the year ended March 31 compared with a profit of 171M
previously.  An exceptional loss of $198.82M was recorded
for the drop in value of properties under development.  No
final dividend was given.

JILIN CHEMICAL GROUP: Seeks debt-to-equity swap            
-----------------------------------------------              
Jilin Chemical Group, parent of Jilin Chemical Industry,  
is applying for the conversion into equity of more than
five billion yuan (about HK$4.66 billion) in debt owed to
the State Development Bank.

The parent has been selected in the pilot debt-equity swap
programme launched by Beijing to help revive the faltering
state-owned enterprises.  Jilin Chemical Industry's
director and general manager, Lu Qirong, said he did not
yet know whether the listed H-share company would benefit
from the scheme. The company has not applied for the debt-
equity swap scheme.  Mr Lu said the parent owed the Bank of
China about US$400 million but the bank seemed to be
reluctant to turn the debt into equity, saying the loan was
not yet due.

The two loans were related to investment in an ethylene
project.  Mr Lu said the company would consider buying
seven facilities in the ethylene project from the parent
when the petrochemical sector had bottomed out.  The seven
facilities had yet to break even, he said.  The listed
company, considered one of the less efficient among H-share
petrochemical companies, reported a 13.49 per cent rise in
attributable profit to 46.01 million yuan in the six months
to June.  It expected production this year would be flat as
last year.  Mr Lu said he expected product prices to rise
after an increase in crude oil prices in the second half.  
(South China Morning Post  27-Aug-1999)

KTP HOLDINGS: Posts annual loss for second year
-----------------------------------------------
KTP Holdings has improved losses to $113.09M in the year
ended March 31.  It recorded $111.05M in provisions for the
drop in value of investments.  The company suffered a loss
of $450.42M previously.  No final dividend was given.

LUOYANG GLASS: Posts first-half loss
------------------------------------                 
Luoyang Glass trimmed interim losses to 18.73 million yuan
(about HK$17.47 million) in the first six months, from
88.76 million yuan last year.  Turnover rose to 338.55
million yuan from 268.45 million yuan last year.  The
operating loss recorded was 33.67 million yuan, down from
115.6 million yuan in the corresponding period.  

Basic losses per share were 2.7 fen, compared with 1.27 fen
the same period last year.  No interim dividend will be
paid. The company is engaged in the production and
marketing of float sheet glass and processed vehicle glass.  
During the past year, the mainland's glass industry
suffered as a result of excessive supply, heated
competition and lower selling prices.   (South China
Morning Post  27-Aug-1999)

TIANJIN HOLDINGS: Loan payment overdue to it
--------------------------------------------
Loss-making Tianjin Bohai Chemical Industry (Group) has hit
a snag in recovering an overdue loan worth 252.71 million
yuan (about HK$235.75 million) extended to a third party.
The borrower has failed to meet the first instalment under
a new repayment plan.

The news came as Tianjin Bohai, along with two other loss-
making H-share companies, stepped up efforts to recoup
overdue loans and deposits with a combined worth of more
than 530 million yuan.  Tianjin Bohai auditor Price
Waterhouse Da Hua said the company should have made a
provision on the 252.71 million yuan loan, considering the
borrower only repaid a very small amount of the loan
overdue since last year and it failed to make the first
instalment under the new repayment plan.

The new plan requires the borrower to repay the amount in
instalments from July 15 to November 30 next year.  Tianjin
Bohai said it had taken legal action to retrieve 29.55
million yuan of overdue deposits placed with various
domestic banks.  Its auditors continued to give a
disclaimer on the company's financial statements for the
six months to June 30.

The firm incurred a net loss of 212.64 million yuan in the
first half and had accumulated losses of 729.8 million yuan
as at June 30.  Fellow H-share company Maanshan Iron and
Steel said that on August 11, it had applied to the court
for the enforcement of an order requiring Haikou-based SEG
International Trust and Investment to repay about $50
million of overdue deposits.  It also applied on August 10
for the enforcement of a court order for Shenzhen Leasing
to repay about $80 million in overdue deposits.

It has been locked in a legal dispute over $48 million of
overdue deposits placed with Citic Ningbo.  Together with
the overdue deposits put at now liquidated China
Venturetech Investment and Guangdong International Trust
and Investment Corp, Maanshan Iron and Steel had problems
trying to recover the five deposits worth 219 million yuan,
or 1.85 per cent of net assets.

Another H-share company, Chengdu Telecommunications Cable,
said it had initiated legal proceedings to recoup 30
million yuan deposited in China Leasing after China Leasing
failed to repay the amount on July 4.  (South China Morning
Post  27-Aug-1999)

VANDA SYSTEMS & COMMO.: Posts annual loss
-----------------------------------------
Vanda Systems & Communications Holdings has suffered a net
loss of $142.75M in the year ended March 31 against a
profit of $10.14M a year ago.  No final dividend was given,
the same as the previous year.


=========
J A P A N
=========

ASHIKAGA BANK: To seek gov't capital to reduce NPLs
BANK OF THE RYUKYUS: To seek gov't capital to reduce NPLs
HIROSHIMA SOGO BANK: To seek gov't capital to reduce NPLs
HOKURIKU BANK: To seek gov't capital to reduce NPLs
---------------------------------------------------------
Four Japanese regional banks are to ask for government
money totalling 260 billion yen ($2.3 billion) to boost
their capital and clear out bad loans, a report said
yesterday.

The four -- Hokuriku Bank, Ashikaga Bank, the Bank of the
Ryukyus and Hiroshima Sogo Bank - are expected to submit
their applications next month to the Financial
Reconstruction Commission, the Nihon Keizai Shimbun daily
said.  The commission is likely to approve their requests
by mid-September, the business newspaper said.

Japan has been trying to tackle deep problems in its
banking industry for the past year. In March Tokyo spent
7,450 billion yen recapitalizing 15 of the top banks.  Then
it shifted its target to the country's 120 regional banks.
Six weak banks have been taken over by the government.
The latest four banks to ask for money have also given the
commission restructuring plans.

Hokuriku, which is expected to request 70 to 80 billion
yen, plans to close more than 20 branches and cut its
workforce by 15 percent to less than 3,500, the Nihon Kezai
said.

"We are seriously considering applying for public funds,
but we are not in a stage to disclose details," said a
spokesman for Hokuriku Bank, based in Toyama, central
Japan.

Ashikaga, based in Tochigi, north of Tokyo, is likely to
request 110 billion yen with plans to cut the number of
employees by 700 from 4,000, the daily said.  (Business Day  
27-Aug-1999)


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

ARAB BANK: Audit uncovers tax evasion
BANQUE PARIBAS: Audit uncovers tax evasion
STANDARD CHARTERED BANK: Audit uncovers tax evasion
TOKYO-MITSUBISHI BANK: Audit uncovers tax evasion
----------------------------------------------------
Six foreign banks, including Tokyo-Mitsubishi Bank, Banque
Paribas, Standard Chartered Bank, and Arab Bank, were
discovered through regular audits by local authorities to
have evaded taxes for the past several years.

The Seoul Regional Tax Office officials found that the six
foreign banks, as well as many other overseas financial
institutions in Seoul, had avoided paying corporation
profit taxes related to their housing benefits to
employees.  In order to reduce the tax burden imposed on
them, the international banks paid their employees after
collecting market rate interest on housing loans, the
officials alleged.

For example, the foreign financial institutions are
suspected of having offered housing loans to their
employees at market rates while compensating them through
other means like allowances.  On the one hand they
collected money from staff members who used bank credits
while on the other hand covering their expenses through
bonuses, the said.

In this way the foreign banks allegedly managed to avoid
paying corporation profit taxes or income tax, according to
the tax officials.  But with the changes in recent tax laws
abolishing income tax exemptions for credits of less than
20 million won, tax officials conducted the special audit
of foreign banks in which the six were found to have evaded
taxes, they added.

The tax loophole allegedy used by the foreign banks was
reportedly discovered by Saedong Accounting, now known as
Anjin Accounting, one of the nation's leading accounting
and consulting firms.  The six foreign banks will soon be
forced by tax authorities to pay due taxes on the funds.

"It is absolutely legal for us to impose taxes on foreign
banks' housing benefits or staff loans. The international
banking community has been evading due taxes for many years
now through inappropriate means suggested by their
accounting advisors," an official in charge of the
corporation profit tax department of the National Tax
Administration told The Korea Times yesterday.

"Foreign banks and local banks are treated fairly and
equitably. They are subject to local laws and regulations.
There should be no loopholes," the tax official said.

But bankers said the six foreign bank branches in Seoul
adopted the policy which led to the tax evasion charges on
the advice of the nation's top accounting firm. They said
the policy was legal if not ethical.

"We have had the policy in place for many years," said one
foreign banker. "The foreign banks believe they should not
be taxed for offering such fringe benefits to their
employees."

He added that since most foreign banks do not engage in
retail banking activities in Korea, it is inappropriate for
local tax authorities to consider their loans to employees
as part of their consumer banking activities and thus
subject them to duties.

"The rationale for local tax authorities is that our staff
loans should be taxed as part of our retail banking
activities. But we are not engaged in retail banking
practices in Korea. The local taxation system is still not
entirely clear and transparent," he added.

He went on to admit that some of the foreign banks'
policies may be viewed as unethical even though they can be
considered completely legal.  One former member of Saedong
Accounting said there was a case in the past in which legal
approval was given to the idea of exempting foreign banks
from paying taxes on their fringe benefits.

The ex-accountant for Saedong, now working for Samil
Accounting Corp., also argued that tax authorities came to
an earlier agreement on the issue, saying they would not
impose such a tax on foreign banks.  But he added the
decision was recently reversed in the wake of a personnel
change.

"How can a policy of the nation's tax authorities change
following a manpower shift? We will see what we can do
about this situation, perhaps even taking the issue to
court," the accountant said.  (Korea Times  27-Aug-1999)

DAEWOO GROUP: Rescue plan freezes debt
--------------------------------------
South Korea has effectively nationalised Daewoo group to
avoid throwing its second largest conglomerate into formal
bankruptcy.  The debt of 12 units of South Korea's ailing
Daewoo business group was frozen yesterday as creditor
banks decided to put them under an emergency rescue plan,
financial authorities said.

"Under the law, their debt was frozen at 4 pm. (0700 GMT)
when creditor banks were informed of a meeting to decide on
the workout rehabilitation of the 12 units," a spokesman
for Korea First Bank said.  "The debt will remain frozen
for three months," he said.

The 12 units will also be allowed lifeline loans under the
workout plan which will see principal and interest payments
on loans suspended.  Bank officials said the workout was
unavoidable as the 12 units of the country's second biggest
group were in a state of virtual default. The group owes a
total of $51 billion.

The units to be put through the program include Daewoo
Motors and Daewoo Heavy Industries.  But the group's cash
cow, Daewoo Securities, which creditor banks will take
over, will not be put through the bailout program.

And it avoids putting the group - which has 90,000
employees in South Korea, accounts for more than 10% of the
country's exports and whose book value assets of 76
trillion won (US$63bil) are greater than the gross domestic
product of the Philippines - into formal bankruptcy,
analysts said.

"It's really ugly," Stella Um, banking analyst for Ing
Barings in Hong Kong, said of the debt workout programme.
"It shows how bad the situation is for Daewoo. It's a
bankruptcy situation if they can't service the debt."

"What is going on is a roundabout nationalisation of Daewoo
entities," said Hank Morris, director of Seoul-based
Industrial Research and Consulting.  "The objective of the
government and the Korean banks is to keep these units out
of the bankruptcy process so they don't have to write off
all these debts immediately.  The government obviously does
not want to leave the Daewoo management in charge of the
asset sale process."

Daewoo is supposed to sell major assets by the end of the
year.  Its Korean creditors will over the next three months
"play a more pro-active role in the group's restructuring
in a more predictable and stable environment," said a
statement from the Financial Supervisory Commission (FSC)
late on Thursday.

In that time, local creditors will decide what to do about
Daewoo's debts. The group said it had a total debt of
US$47bil, but most analysts think it could be more.
The workout plan would likely involve swapping debt for
equity, extending payment deadlines and writing off a
portion of the debt, said a spokesman for lead creditor
Korea First Bank.

Daewoo owes some US$10bil to foreign creditors and it is
not at all clear that they are all on board with the latest
life support plan for the group.  Daewoo said a meeting
with its foreign creditors scheduled for yesterday had been
delayed until both sides could sort through the workout
with Korean creditors.  The foreign creditors fall into two
categories - those with Korean-based operations and those
which do not but who have lent to one of Daewoo's many
overseas entities.  The latter group poses a problem if
they start calling in overseas loans or seizing collateral.

"If they foreclose on collateral, that means property that
Daewoo thinks it owns in Europe could be stripped away from
parent companies in Korea," Morris said.

That could complicate matters because a lot of Daewoo's
plant capacity at home is devoted to supplying parts and
assembly kits for its overseas operations.
In the end, analysts said, Korean taxpayers would probably
wind up as the losers.  Banks will have to eat a big chunk
of Daewoo's debt and then turn to the government for more
recapitalisation funds.

The rapidly recovering economy means the government can
afford to bail out Daewoo and its banks with better-than-
expected revenues and a smaller-than-planned fiscal
deficit.

"What the government is doing now is aiding Daewoo at the
sacrifice of Korean banks," Um said. "It's not a good
situation. But in the short run, it's inevitable for the
government to bail out Daewo. The group is too big to fail
.."  (Reuters, Star Online  28-Aug-1999; Business Day  27-
Aug-1999)

DAEWOO GROUP: Succumbs to workout filing
----------------------------------------
Daewoo, which has been telling creditors that it would have
to wait for the return of chair Kim Woo-choong from an
overseas business trip before formally filing workout
applications for 12 of its subsidiaries, has finally
succumbed to pressure from the Financial Supervisory
Commission (FSC) to file. According to the FSC, Daewoo
filed the application for the workout procedure with main
creditor Korea First Bank on Thursday. The FSC had been
saying that Kim already agreed to the workout measures
immediately after his Wednesday meeting with
representatives from the government and banking sector.  
(Digital ChosunIlbo  27-Aug-1999)

DAEWOO GROUP: FSC says no guarantees for foreign creditors
----------------------------------------------------------
The Financial Supervisory Commission (FSC) has indirectly
rejected Daewoo Group's foreign creditors' demand that
their loans to the embattled group be guaranteed by
domestic creditors, a commission official said yesterday.

According to the official, the demand was put forward by
the three co-chairmen of the steering committee formed by
Daewoo's foreign creditors during their meeting Thursday
with Oh Kap-soo, deputy chairman of the Financial
Supervisory Service.  The three co-chairmen are from HSBC
Holdings, Bank of Tokyo-Mitsubishi and Chase Manhattan
Bank.

According to the official, the three representatives said
that if domestic creditors accept their requests for
guarantees, foreign creditors will extend the maturities of
their loans to Daewoo and collect interest at market rates
without any rollover surcharge.  The three foreign bank
executives also said that foreign creditors will provide
support to domestic banks in return for guarantees.

"But they did not mention support to Daewoo," the
commission official said.

In response, Oh said the issue should be discussed between
domestic and foreign creditors, saying that the government
has no intention of intervening in the situation, the
official said.

"Oh stressed that the government will treat domestic and
foreign creditors equally," the official said. He added
that if domestic creditors provide guarantees to foreign
creditors, they will assume 100 percent exposure to Daewoo,
which is against the principle of equal treatment.  "If
domestic creditors accept the request, that's fine. But I
don't think they will accept it," the official said.

Meanwhile, the steering committee of foreign creditors
postponed a meeting with the Daewoo Group scheduled for
yesterday. Instead, it issued a press release which said
the committee "share the same goals as does the Corporate
Restructuring Coordinating Committee (CRCC) in maximizing
value" (of Daewoo firms).  

The committee said its representatives have met with the
FSS, CRCC, Daewoo and their advisers to "acquaint
themselves with the impact of the 'workout' process of
Daewoo." While sharing the same goals with CRCC, the
committee said it is "continuing discussions in attempting
to find a solution to stabilize the financial situation of
Daewoo."  (Korea Herald  28-Aug-1999)

DAEWOO GROUP: Union workers protest workout programs       
----------------------------------------------------        
Daewoo union workers are protesting the unilateral decision
by creditors to place 12 Daewoo subsidiaries under
corporate workout programs, fearing major layoffs.

Union leaders said yesterday that they will struggle
against any move by management and creditors to drastically
reduce the number of workers at the 12 Daewoo companies.  
The Daewoo companies placed under an immediate workout
effective Thursday include Daewoo Corp., Daewoo Motor,
Ssangyong Motors, Daewoo Electronics and Orion Electric.  
The union workers said a meeting of representatives from
the 12 companies has been called for Sept. 1 to discuss how
to deal with the consequences of being placed under
workout.

The union employees have been calling on management and
creditors since Daewoo's financial problems surfaced, to
provide them with an opportunity to recover on their own.  
Companies like Daewoo Electronics, for instance, are in a
sound position to realize normalization since an American
investment firm has already committed itself to a takeover
for $3.2 billion.  Unions of other subsidiaries, including
Orion Electric and Daewoo Motor, have put together
emergency teams to monitor and deter moves by management to
lay off workers.  (Korea Times  27-Aug-1999)    

DAEWOO GROUP: Sale of Seoul Hilton to GMH crumbles
--------------------------------------------------
Daewoo's bid to sell off the group-owned Hilton Hotel in
downtown Seoul has been ruptured.

The business group had announced back in June that it
signed an agreement with General Mediterranean Holding
(GMH) of Luxembourg to sell the hotel for US$215 million.
On Friday, however, the negotiations deadlocked since a
preliminary agreement was reached over various issues.
According to Daewoo, one of the major points of contention
was GMH's demand that Daewoo commit to buy back the Hilton
once the hotel's operations were normalized. Daewoo said it
rejected the condition and has begun searching for new
purchasers.  (Digital ChosunILbo  28-Aug-1999)


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

FABER GROUP: To wind up several subsidiaries, reform
----------------------------------------------------
FABER Group Bhd has proposed to wind up several
subsidiaries in a move to streamline and rationalise its
operations.

In a statement, the company said units to be wound up by
way of members' voluntary winding-up are: Shaybon Sdn Bhd,
Semangat Holdings Sdn Bhd, Merlin Inn (Melaka) Sdn Bhd,
Merlin Inn Muar Sdn Bhd, FM Management Services Sdn Bhd,
Merlin Travel & Tours Sdn Bhd and Merlin Management Corp
Pte Ltd.  In addition, Faber Hotels Holdings Sdn Bhd, a
wholly owned unit of Faber Group also plans to wind up
Merlin Highway Inss Sdn Bhd and Merlin Interhotel
Reservations System Pte Ltd.

Other units that will also be wound up include Bernam
Valley Sdn Bhd and Faber Development Sdn Bhd.
Faber Group said it also plans to dissolve some units by
applying to the Registrar of Companies to strike off the
register the names of the units.  The companies are Hikmat
Sekata Sdn Bhd, Mados-Faber Sdn Bhd, Faber Corp Sdn Bhd,
Merlin Inn Penang Sdn Bhd and Faber Flows Sdn Bhd.  (Star
Online  28-Aug-1999)

HEXAGON HOLDINGS BHD: Posts annual loss
---------------------------------------
Hexagon Holdings Bhd has incurred a group pre-tax loss of
RM5.748mil for the year ended March 31, 1999, compared with
a profit of RM1.004mil a year earlier.

The company said when announcing the preliminary results
that group sales decreased 37.89% to RM88.127mil from
RM141.886mil previously.  Hexagon blamed the decrease in
revenue on the slowdown of regional business activities and
keen competition.

The board has recommended a first and final dividend of 1%
for year under review, pending shareholders' approval at
the forthcoming annual general meeting. (Star Online  27-
Aug-1999)

KFC HOLDINGS: KUB Holdings front-runner to acquire
--------------------------------------------------
Kub Holding Bhd has emerged as the front runner to acquire
control of fast-food company KFC Holdings (Malaysia) Bhd,
according to industry sources.

"With RM500mil cash in its coffers, it looks like KUB has
money upfront to clinch the deal," a source said.

Heavily-indebted KFC needs a rescuer with plenty of cash.
As at Dec 31, 1998, it had group borrowings plus amounts
owed to creditors of RM298mil, according to its 1998 annual
report.  When contacted by Star Business yesterday, KUB
chairman Datuk Hassan Harun confirmed that the company was
interested in acquiring a controlling stake in KFC and had
submitted a bid.  Hassan declined to give details of the
offer price but said KUB would pay for the KFC shares based
on fundamentals.

"We have to make sure the yield to shareholders is
justified and reasonable, but a premium in terms of
goodwill for the KFC franchise and the development of the
business to date will be considered," Hassan said.

After selling its stake in Sime Bank Bhd, KUB is flush with
cash and looking for a core business to enhance its
earnings.  According to the sources, in addition to KFC,
KUB is still keen to acquire 32% of Malaysia Mining Corp
Bhd (MMC).

"KUB, which is prudently managed and financially sound,
will be able to secure loans if it buys both the
companies," a source said, adding that KUB had plans to
enhance the future earnings of KFC if it succeeded in its
bid.

Besides KUB, three other parties have also submitted bids
for the 58 million shares or 31% equity stake in KFC held
by Punca Ibarat Sdn Bhd, a private vehicle of KFC managing
director Datuk Ishak Ismail.  The three parties are
Padiberas Nasional Bhd (Bernas) and two individuals--Izhar
Sulaiman and Abdullah Omar--who are said to be linked to
Ishak.

The Al-Barakah group, a foreign group representing some
Arab investors interest, is also said to be keen, but
sources felt that the KFC stake would go to a local rather
than a foreign party.  The sources said that one of the
bidders had offered RM5 a share for the KFC stake, but its
proposal would lapse at the end of this month.

An analyst said Ishak and friendly parties had pledged as
collateral the 58 million KFC shares with Arab-Malaysian
Corp Bhd (Amcorp) for a RM300mil loan to gain control of
KFC from the Leong Hup group's Lau brothers sometime in
1994/95. At that time, the KFC shares were trading at RM12.

"We believe Amcorp had then pledged those shares with the
EPF and 14 financial institutions. Some of the parties have
paid off their loan, but is still an outstanding debt of
about RM179mil," a source said. "What the institutions want
is repayment and any bidder who can pay cash stands a good
chance of getting the 31% stake in KFC."

KFC has 270 KFC toutlets and 68 Pizza Hut restaurants in
the country. The KFC franchise in Malaysia is considered
the best performing in the world.  KFC also owns 70.3% of
Ayamas, which supplies the chicken to KFC outlets. Ayamas,
a second board company, has 26 convenience stores, 13
kiosks, 11 restaurants and three depots.

Shares of KFC were last traded at RM5.60. The company's net
tangible asset (NTA) backing per share is 91 sen, according
to its unaudited results for the year ended Dec 31, 1998.
KFC has recorded pre-tax losses for the past two financial
years. It suffered a pre-tax loss of RM11.6mil for the year
ended Dec 31, 1997, and a loss of RM946,000 the following
year.  KUB is involved in information technology and
telecommunications, plantations, properties, construction,
trading, manfacturing and education.  (Star Online  27-Aug-
1999)

MALAYSIA AICA BHD: Posts loss, liquidates stake in co.
------------------------------------------------------
Malaysia Aica said it suffered a loss of RM46,436 from the
disposal for the year ended March 31 this year. Meanwhile,
it has disposed of its entire shareholding of 561,000
shares, representing 51% equity interest in Maica Polijaya
Sdn Bhd to Syarikat Cahaya Rimba Sdn Bhd for RM168,300
cash.  The company informed the KLSE that it had acquired
the shares in 1982 at RM562,100 cash but the cost of the
investment had been written down to RM214,100 as at July
31, 1999.  (Star Online  27-Aug-1999)


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

UNIWIDE HOLDINGS: Another suitor appears
----------------------------------------
Retailer Uniwide Holdings, Inc. said a company linked to
the leader of popular church group El Shaddai has shown
interest in buying its retail chain Uniwide Sales Warehouse
Club Inc.

"Amvel Land Development Corp, represented by Franklin M.
Velarde, has approached us and signified their interest in
the Uniwide Sales Warehouse Club, Inc., a franchisee of
Uniwide Holdings, Inc.," the company said in a disclosure
to the exchange.

Velarde is the son of Brother Mike Velarde, a charismatic
preacher who heads the El Shaddai group and is an adviser
of President Joseph Estrada.

"It's the Amvel group talking to Uniwide," Mel Robles,
spokesman of the El Shaddai group told Reuters, adding that
the talks were "progressing" but declined to give further
details.  Amvel Land is owned by the family of Velarde, he
added.

Uniwide earlier said reports that the El Shaddai group will
infuse fresh funds in the company in exchange for a
majority stake were "without basis."  The company, however,
reiterated it is holding talks with several investors and
discussions are at various stages.  Uniwide's finances were
squeezed after it pursued a rapid expansion of its store
network and mall operations just before the Asian financial
crisis struck in 1997.

It recorded a net loss of 410.99 million Philippine pesos
(PhP) (US$10.3 million at PhP39.758:US$1) in the first half
from a year-earlier net profit of PhP127.55 million (US$3.2
million).  It has liabilities of over PhP11 billion (US$277
million), of which PhP6.95 billion (US$175 million) are
owed to local banks.  The Securities and Exchange
Commission had extended the debt payments suspension of
Uniwide up to October 10 due to the delayed formation of a
receiver for the firm. (Reuters, Business World  27-Aug-
1999)      


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S I N G A P O R E
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FORM HOLDINGS: Gets nod for restructuring
-----------------------------------------
SESDAQ-listed Form Holdings has received shareholders'
approval for its restructuring plans, which include an
issue of 300 million new shares to Irisca Investments at
five cents each.

Irisca will make a general offer to acquire all the issued
ordinary shares of the company.  Form also received the
green light to carry out a rights issue of 98 million new
shares on the basis of one rights share for every four
shares held.  (Straits Times  27-Aug-1999)

ITE ELECTRIC: Posts lower first-half loss than expected
-------------------------------------------------------
Cost-cutting measures and lower interest costs have helped
to staunch the flow of red ink at ITE Electric for the
first half of this year.  Interim net loss fell to
$974,000, down 20 per cent from $1.2 million in the same
period last.

The company said the reduction in losses was achieved
despite lower turnover and margins from a depressed
construction market.  Group turnover amounted to $9
million, down by a third from $13.4 million previously.
Loss per share came to 2.45 cents, down from 2.94 cents.
Net tangible asset backing per share fell to 29.28 cents
from 35.93 cents.

ITE said its products and margins were affected by stiffer
competition following a contraction of the construction
industry.  Operating costs have been reduced, it added, but
declining turnover and margins had made it difficult to
cover the costs, resulting in a loss position for the
company.  Looking ahead, ITE said the construction industry
was unlikely to recover as fast as the other sectors.
Unfavourable conditions will persist and the Sesdaq-listed
company expects a difficult second half this year.  
(Business Times  28-Aug-1999)

LIANG COURT HOLDINGS: Posts first-half loss                
-------------------------------------------                  
Liang Court Holdings yesterday became the first listed
company to report half-time losses this year, with a 38 per
cent rise in interim losses to $17.1 million.

The company actually had an operating profit before
provisions, interest and depreciation of $18.4 million for
the six months ended June. This is 3 per cent more than
previously.  But provisions rose 20 per cent to $15.7
million mainly on account of two projects in China, thus
driving the firm into the red. The provisions were made for
a retail project in Wuhan and a golf course in Guangzhou
due to the poor operations or outlook, said Liang Court's
new chief executive officer Kee Teck Koon at a briefing
yesterday.

Turnover fell 14 per cent to $71.3 million as fewer
residential project sales were recognised, said Mr Kee.
Basic loss per share was 3.6 cents, up from 2.9 cents
previously. Net tangible assets per share were 95 cents,
lower than the previous $1.14. No dividends were declared.

So far, 83 listed companies have released their interim
results for the six months ended June 30, 1999. Other than
Liang Court, the rest were all profitable. Of these, 15
companies moved back into the black, 54 enjoyed higher
earnings, while the remaining 13 had lower earnings.

Liang Court also said it does not expect profitability in
the current year, but pointed to positive developments. Mr
Kee said that most of Liang Court's markets have begun to
show recovery and the proposed asset swap with Pidemco Land
should be completed by end September.  This will enable
three months of profit contribution, and reduce the firm's
gearing from 1.4 -- one of the highest among listed
property firms -- to 0.7.

"However, as the full financial effects of these positive
developments will only be realised over time, it is
unlikely that we will be profitable in the current year,"
said Mr Kee. He expects "improvement" in the next financial
year, but stopped short of projecting profitability.

Following Pidemco's purchase of a 59 per cent stake in
Liang Court, it will buy Liang Court's interest in the
Springleaf Tower office project. In turn, Liang Court will
purchase numerous hospitality and retail properties from
Pidemco, and more than double its net tangible assets to
nearly $1 billion.

By end 2001, Liang Court will become the largest Singapore-
based service apartment owner and manager in Asia Pacific
with 2,850 apartments. It will also be a leading Singapore-
based retail space owner and manager in Asia Pacific with
276,700 sq metres of lettable retail space by end 2002.

Mr Kee yesterday also announced a slew of plans to drive
Liang Court's turnaround. Its financial position will be
improved through divestment of non-core assets like
residential and industrial properties.  Liang Court is also
reviewing its capital structure, including "actively
pursuing" asset securitisation.

Liang Court is also upgrading its properties to improve
their earnings' quality.  On future investments, Mr Kee
said the company will invest in income-generating, rather
than greenfield projects. It is looking to Europe for its
hospitality and retail expansion.  (Business Times  27-Aug-
1999)

SIN SOON HUAT: Posts annual loss
--------------------------------
Sin Soon Huat sank into the red with a $2.95 million loss
for the year ended May 31, as it chalked up an interest
bill of more than three times its operating profits.

A drop in sales of the company's industrial hardware to the
crisis-hit countries of Malaysia, Thailand and Indonesia
led its revenue to drop 20 per cent to $75.4 million. Its
other income sources also shrank, leading operating profit
to dive 82 per cent to $1.2 million.

This was more than wiped out by interest on borrowings of
$3.8 million, as well as a depreciation and amortisation
charge of $1.5 million.  The group's $2.95 million loss is
a sharp contrast to its $1.4 million profit a year ago.
Loss per share was 0.98 cents, compared to earnings per
share of 0.48 cents a year ago. Net tangible asset backing
per share fell 0.82 cents to 19.09 cents.

But the group said that given the regional economic
recovery, it looks forward to an improved performance,
especially in the second half of its financial year ending
May 31, 2000.   It had also managed to cut external
borrowings by $20 million to $40 million during the year,
it added.  The company announced a one per cent dividend,
unchanged from the previous year.  (Business Times  28-Aug-
1999)

THAKRAL CORP.: Hires financial advisor for restructure     
------------------------------------------------------      
Ailing Thakral Corp, which recently reported a whopping
full-year bottom-line loss of $232 million, has appointed
Arthur Andersen as its financial advisor in a bid to
restore its lost fortunes.

The mainboard-listed consumer electronics distributor and
manufacturer -- which has 95 per cent of its business in
China and Hongkong -- is burdened by a mountain of debt
including a US$250 million (S$422.9 million) syndicated
loan from 19 bankers. As at March 31, Thakral had
outstanding bank borrowings of $537 million.  When
contacted last night, Arthur Andersen partner Nicky Tan
said he was "looking at ways to strengthen the company's
balance sheet, including looking for strategic investors".

Speaking to The Straits Times just after returning from
Kuala Lumpur where he had closed the Yeo Hiap Seng
restructuring deal, he noted that it was still too early to
comment on the proper plan for Thakral but it was likely
that a combination of both local and international
investors would be looked at.  In a statement to the Stock
Exchange of Singapore, Thakral yesterday said Arthur
Andersen would be "advising the group in developing
strategic plans to improve performance and enhance its
shareholders' value".

It will also be assisting Thakral in "developing and
implementing a comprehensive plan to recapitalise the
group's balance sheet".

The $232 million loss that Thakral reported for the year
ended March wiped out 60 per cent of its shareholders'
funds. Blaming the poor showing on bad hedging decisions,
it said then that it would strengthen core businesses and
raise $120 million in working capital this year in a bid to
return to the black. Almost immediately after that, Thakral
managing director Inder Bethal Singh said the group had
received offers from five potential investors, each worth
up to 10 per cent of its paid-up capital of $585 million.

The group's chief financial officer, Mr P R Ahuja, even
indicated then that the company was not cash-strapped since
it had $80-$85 million in its coffers.  So why the sudden
change? Why the need for financial advisers if money was
not an issue?

In reply to queries, Thakral company secretary Lo Kim Seng
said: "We need people like Arthur Andersen to help us in
that particular direction. I suppose we could do it all
ourselves but it's always better to get professionals to
look at which areas the funds should come from, rather than
do it all in dribs and drabs."

He added that it would take between two and three months
for the Arthur Andersen team to come up with a strategy for
the consumer electronics group.  "We're leaving everything
to them, but of course they will be doing it in
consultation with us."  (Straits Times, Business Times  28-
Aug-1999)


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T H A I L A N D
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ITALIAN-THAI DEVEL.: Considers capital increase to cut debt
-----------------------------------------------------------
Italian-Thai Development Plc is considering increasing its
capital soon by issuing new shares worth between $60
million and $75 million in a bid to reduce its foreign debt
burden.

"We plan to issue the shares as soon as we think the market
conditions are appropriate for them, with our underwriter,
Goldman Sachs," said Chatchai Chutima, vice-president of
the giant construction contractor.

The shares would be placed with a financial investor and
not a strategic investor.  Under a debt rescheduling deal
made with 46 foreign creditor banks, the company would use
up to 60% of the first $60 million raised to reduce debts,
and would use another 40% of any amount exceeding $60
million for debt servicing.  The remaining money would be
used as working capital, Mr Chatchai said.

"We haven't decided on the pricing [of the shares] yet, nor
on the people we want to sell to, but it's going to be a
private placement with somebody who's not a strategic
investor, and I expect it to be around the market price,"
he said.

Shares of Italian-Thai closed yesterday on the Stock
Exchange of Thailand at 61 baht, up 2.5 baht, on turnover
worth 45.9 million. On the foreign board, shares closed at
61 baht, up 5.5, on turnover worth 2.7 million.  The
Karnasuta family will continue to be the majority
shareholder in the company. The family's holding company
also plans to sell some of its other businesses to raise
money, but the businesses for sale have yet to be decided.

Italian-Thai announced last Friday that it had successfully
rescheduled about $200 million of debts, with payment terms
extended by five more years.  Ferrier Hodgson represented
the creditors as part of the rescheduling of this debt with
46 banks.

"Italian Thai is a good example of how a transparent and
communicative company can easily reschedule their debts, if
there's a real commitment from the company," William Raper,
director for Ferrier Hodgson said.  (Bangkok Post  27-Aug-
1999)

KRUNG THAI BANK: To partner in asset mgmt company
-------------------------------------------------
KRUNG Thai Bank and its biggest creditor, the Financial
Institutions Development Fund (FIDF), have shortlisted two
out of five available options to set up an asset management
company (AMC) for the Finance Ministry's final approval,
said a central bank official.  

Chaktip Nitibhon, assistant governor of the Bank of
Thailand and manager of the FIDF, said yesterday the two
options would be proposed for the minister's consideration
on Tuesday.   Finance Minister Tarrin Nimmanahaeminda will
need to choose one option and propose it to the Cabinet for
final consideration. The Cabinet will also need to approve
the yield maintenance programme planned for the AMC.

"These two options are really workable. They can solve the
financial problem and [they're transparent enough to give]
answers to the politicians," he said.

He noted that during the discussion between both sides
yesterday, some issues had been agreed upon but others had
not. He added that regarding the issues which had failed to
win a consensus, both sides needed to present their
standpoints to the finance minister.  Among the issues they
discussed were the shareholding structure, guidelines for
the NPL transfers, types of NPLs subject to transfer to the
AMC, and the source of funds.

The meeting concluded that in the first stage, some non-
performing loans (NPLs) of Krung Thai Bank and some from
First Bangkok City Bank will be transferred to a single
asset management company, but they will be managed through
different accounts to facilitate the FIDF-initiated yield
maintenance programme for FBCB's non-performing loans.
Singh Tangtatswas, president of the country's largest
state-owned bank, told reporters after the meeting with the
FIDF that there was no clear guideline on how to
differentiate the NPLs.

"In principle, the NPLs to be transferred to the asset
management company are unrestructured loans," he said.

Both sides have not yet finalised the shareholding issue,
but Chaktip assured that when the establishment guidelines
were clear, other details could be finalised later on.
The FIDF manager also refused to answer whether the
transfers of some NPLs to an asset management company were
made to ensure that the recent Bt108 billion injection was
sufficient for Krung Thai Bank. He said that as all NPLs
could not be transferred to the AMC, Krung Thai Bank would
shoulder good assets and partial problem loans, and that
was backed up by the Bt108 billion injection.

The injection is, actually, a conversion of the KTB's debts
to FBCB into equity.  He also said the AMC was a means to
manage non-performing loans with maximum efficiency and
that it would draw a clearer picture of the bank's
financial position at this year end. This picture would
tell the state if Krung Thai Bank needed additional money.

"After the AMC is established, Krung Thai Bank will become
a good bank which still carries some NPLs. After the Bt108
billion recapitalisation, the bank is somewhat stable and
the situation will improve," he said.

According to Singh, the AMC team will incorporate some
employees in the bank's asset management department as well
as some outside experts.  The AMC is expected to accelerate
the management of NPLs at Krung Thai Bank which has seen a
continued rise in NPLs, though some banks have already
reported declines in problem loans amid the improving
economic situation.

As of June, Krung Thai Bank shouldered Bt393 billion in
NPLs or 59.3 per cent of outstanding credits. However,
FBCB, which had been integrated into Krung Thai Bank late
last year, carried around 80 per cent from approximately
Bt200-billion worth of outstanding credits.  (The Nation  
28-Aug-1999)

KULTHORN KIRBY: Gearing up for major restructuring
--------------------------------------------------
Kulthorn Kirby Plc, a major compressor manufacturer, is
gearing up for a major restructuring with an announcement
that it was planning to divest all its stake in two
affiliates -- Thai Compressor Manufacturing Co (Thacom) and
Thai Synter Products Co.

A high-level source at the company said talks were underway
with several investors who had expressed interest in
acquiring 25.50 per cent and 44.45 per cent in Thacom and
Thai Synter Products Co, respectively.

"The company opts to pull out from Thacom and Thai Synter
Products Co because they are not adding any synergy to our
business. Moreover, Thacom is our rival because it
manufactures the same products as KKC," the source said.

Thacom, a joint venture between Thai and Japanese
investors, including Mitsubishi Heavy Industry Co, is a
rotary-type compressor manufacturer while Thai Synter
Products Co is a producer of ponder metal used in moulding
parts of air-conditioners, motorcycles and automobiles.
Hitachi Ponder Metal Co of Japan is the largest shareholder
with a 47.6-per cent stake in Thai Synter Products.

"The two companies' stake would be sold to Thai entities in
order to comply with the Board of Investment's (BoI)
regulation limiting foreigners stake to not exceeding 50
per cent," the source said.

The source denied to mention the names of the entities but
said the deal would be completed by late September.  The
proceeds coming from the sales of the two firms will be
used to repay KKC's debts in line with its Bt2.2 billion
debt restructuring plan, said the source.

"We expect to obtain Bt280 million from the sales," he
said, adding that the projected figure is based on KKC's
creditors and financial adviser's estimation.

Of the total Bt280 million, Bt200 million would be
generated from the sale of Thacom and the rest from Thai
Synter Products Co, the source predicted.  After the sale,
two subsidiaries -- Kulthorn Control Co and Kulthorn Kirby
Foundry Co -- will be left untouched by the deal, while
none of affiliate firms will remain, the source said.

Kulthorn Control Co operates manufacturing steel for
compressor parts with a capacity of 17,000 tonnes a year,
while Kulthorn Kirby Foundry Co produces copper wire which
is a raw material for compressor manufacturing, with annual
capacity of 3,000 tonnes. Around 40 to 50 per cent of their
outputs are now supplied to KKC.  KKC has completed a debt-
restructuring agreement with its 12 creditor banks led by
the Industrial Finance Cooperation of Thailand (IFCT).  
(The Nation  28-Aug-1999)

RADANASIN BANK: UOB getting closer to acquiring stake
-----------------------------------------------------
United Overseas Bank (UOB) seems to be one step closer to
getting a Thai bank, although the bank yesterday issued a
statement that it was still awaiting the outcome of its
bid.

Yesterday, Bridge News carried a Thai newspaper report
which said UOB had outbid Citibank for Thailand's Radanasin
Bank slated for privatisation later this year.
The Singapore bank is among five parties keen on a stake in
state-owned Radanasin Bank.

Responding to Bridge News' queries on whether UOB has edged
out its competitors for a stake in Radanasin Bank, the bank
said in a written reply: If UOB is successful in acquiring
the smallest Thai bank, it would be following in the
footsteps of DBS Bank, which swooped on Thai Danu Bank last
year.

When contacted by BT, a UOB spokesman said the bank is
still awaiting the outcome from the Thai authorities.
An earlier report this month said the central bank, the
Bank of Thailand, will announce the winning bid for
Radanasin Bank along with that for second-smallest bank,
the Nakornthon Bank on Sept 10. UOB was also previously in
the bidding for Nakornthon Bank but is believed to have
given up, while Standard Chartered Bank is believed to be
still in the running.

The two banks are among four state-owned commercial banks
that are being sold as part of the Thai government's
attempt to overhaul the financial industry and reduce the
cost of bailing out ailing lenders.  UOB's bid to expand
via regional acquisitions has been a slow one so far and
got even more so this year as the recovery got underway,
and political factors got in the way .

Its chairman Wee Cho Yaw has been reported as saying that
he was eyeing another two banks, Bangkok Metropolitan Bank
and Siam City Bank, as a back-up if the bid for Radanasin
Bank fell through.  The bank has had some success in the
Philippines where it will buy a controlling stake in
Westmont Bank.  And if it succeeds in Thailand, the bank
will be catapulted to the big league, along with DBS Bank,
putting rival OCBC Bank in the shade.  (Bangkok Post  28-
Aug-1999)

THAI LIFE: Appraisal licence suspended
--------------------------------------
The Securities and Exchange Commission yesterday suspended
the appraisal licence of Thai Life Appraisal for failing to
comply with regulatory directives.  Two valuers of the firm
have resigned. Regulators ordered Thai Life to retain new
qualified valuers to retain its one-year licence, which
expires on October 6.  (Bangkok Post  27-Aug-1999)

THAI MARITIME NAVIGATION: To be sold if privitization fails
-----------------------------------------------------------
State-owned Thai Maritime Navigation (TMN) should be
dissolved if no private parties want to buy it, a
government committee said yesterday.  The State Enterprise
Policy Committee set a deadline of one year for privatising
TMN, something the government has been trying to do for a
decade.

The committee, headed by Deputy Prime Minister Supachai
Panitchpakdi, will send the guidelines to the cabinet soon.
The committee proposed that:

    *TMN increase its capital by one billion baht, with private
investors holding 70% and the government 30%.
    *The Transport Ministry hire consults to examine the TMN
books, after paying dividends to shareholders based on 90%
of accumulated profit.
    *After due diligence, if the share price is higher than
12.50 baht each, then TMN would sell its capital-increase
shares at 12.50 baht to interested investors. If the price
is lower than 12.50, then the shares will be sold at the
true market price.  (Bangkok Post  28-Aug-1999)


S U B S C R I P T I O N  I N F O R M A T I O N

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