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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

           Friday, September 24, 1999, Vol. 2, No. 186

                            Headlines


* C H I N A  &  H O N G  K O N G *

ALBATRONICS (FAR EAST): Creditor files for bankruptcy
CLIMAX INT'L: Posts narrower annual loss
GUANGDONG INVESTMENT: Posts first-half loss         
INTERFORM CERAMICS TECH.: Debt plan gives creds. haircuts
LAI SUN HOTELS INT'L: Posts first-half loss
VICTORY GROUP: Posts first-half loss


* I N D O N E S I A *

BANK BALI: Stanchart waiting suitor in wings
GARUDA INDONESIA: Gov't to take over debt repayment
PT ASURANSI JASA INDONESIA: Creditor's bankruptcy rejected


* M A L A Y S I A *

CAHYA MATA SARAWAK: Posts first-half loss
UTAMA BANKING GROUP: Posts first-half loss


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

EYCO GROUP: Wants reconsideration of liquidation order
MONDRAGON INT'L PHILIPPINES: TRO sought to exclude board


* S I N G A P O R E *

MHE HOLDINGS: Posts annual loss
PACIFIC CAN INVESTMENT HOLDINGS: Finds white knight with $
SCOTTS HOLDINGS: Posts annual loss


* T H A I L A N D *

KASET THAI SUGAR CO.: Creditors reject rehab plan
KR PRECISION: New shares to help complete debt rehab


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

ALBATRONICS (FAR EAST): Creditor files for bankruptcy
-----------------------------------------------------
The Hongkong and Shanghai Banking Corporation has filed an
application in the High Court to seek a bankruptcy order
against Fukumori Nakahara, the managing director of listed
Albatronics (Far East).  Albatronics was engaged in
production of a range of electronic comsumer products.

CLIMAX INT'L: Posts narrower annual loss
----------------------------------------
Stationery-maker Climax International's losses narrowed in
the year ended March 31 to $112.4M from $480.1M in the
previous year.  Turnover in the year fell 21.8% to $579.9M.  
Bank borrowings amounted to $599.1M.

GUANGDONG INVESTMENT: Posts first-half loss                
-------------------------------------------               
Guangdong Investment (GDI) has been hit by a $1.73 billion
attributable loss in the six months to June, bogged down by
heavy provision for non-performing assets.  A year earlier,
the company had a $111.01 million net profit, though it
reported a $2.01 billion loss for the full year.

The group sold its non-core businesses, including its
timber, cement and Nanfang Dasha retail operations. These
outfits have suffered losses since 1998.  Operating losses
for GDI's non-core businesses jumped more than 18 times to
$101.9 million during the period.

"Although the provisions made in respect of (disposal of
non-core) businesses will drastically affect the group's
1999 results, such firm measures by the group should serve
to minimise further losses from these businesses and remove
their negative effects on cash flow," Managing director
Herbert Hui said.

He said disengaging from the group's non-core businesses
was part of GDI's proposed restructuring plan.  For the
period under review, GDI's turnover from its core-
businesses went up 38.6 per cent to $875.4 million.
Operating profit of its core-businesses declined 12.8 per
cent to $204.7 million.  GDI posted a 69.1 cent loss per
share.  The company said operating profit at GDI's core
businesses of utilities, hotels, infrastructure and
property fell 12.76 per cent to $204.71 million, mainly
because of a weak performance at the hotel arm.  

A company spokesman said other non-core businesses, such as
Guangdong Brewery and Guangdong Tannery, would be disposed
of as a package under the restructuring plan.  These
businesses had an operating loss of $73.72 million,
compared with a profit of $81.41 million a year earlier.
GDI subsidiary Guangdong Brewery Holdings' profit halved to
$22.9 million from $47.73 million in the period despite a
22 per cent rise in turnover to $324.14 million.

Chairman Au Wai-ming attributed the poor showing to weak
consumption and intense competition.  Fellow subsidiary
Guangdong Tannery had a net loss of $28.88 million in the
first half as turnover fell 40.94 per cent.  (South China
Morning Post, Hong Kong Standard  23-Sep-1999)

INTERFORM CERAMICS TECH.: Debt plan gives creds. haircuts  
---------------------------------------------------------
Interform Ceramics Technologies' creditors may recover less
than 10 per cent of outstanding loans under a debt-
restructuring proposal by Companion Building Material
(Holdings) (CBM) and New World Development.

CBM chairman Doreen Leung yesterday said the proposal
involved less than $70 million, compared with more than $1
billion owed by Interform. She said creditors had virtually
given up on debt-collection efforts ahead of Interform's
liquidation hearing on September 29.

Two new restructuring proposals received by Interform
earlier this week are understood to be from a US-based
venture capital fund and mainland property investor Tian An
China Investments. Interform's shares rose 36.5 per cent
yesterday to 28 cents before trading was suspended pending
an announcement on the restructuring.  (South China Morning
Post  23-Sep-1999)

LAI SUN HOTELS INT'L: Posts first-half loss                
-------------------------------------------                    
Lai Sun Hotels International (LSHI) posted a net loss of
$97.75 million in the six months to June 30 after being hit
with an exceptional loss of $148.51 million. By comparison,
the company posted a net profit of $53.83M a year ago.  

The group, which is 52.17% owned by Lai Sun Development,
however saw a 25% rise in its turnover.  Operating profit
before exceptionals also rose almost tenfold to $33.51M,
compared with the last corresponding period.  Lai Sun
declared no interim dividend.  Despite an exceptional gain
from the disposal of the Four Seasons Hotel in New York,
the company's earnings were largely offset by the losses
resulting from the disposal of other assets.

Chairman Peter Lam Kin-ngok said: "The road of recovery for
the Asian hospitality sector is expected to remain bumpy
despite a more stable economic environment."

During the period the company reaped an exceptional gain of
$261.05 million from the sale of its interests in the Four
Seasons Hotel.  However, the hotel concern made losses from
the sale of a residential development, The Lions in
Vancouver, and the disposal of the Hong Kong Plaza serviced
apartments in Shanghai.

LSHI also made provision for a loss arising from the
disposal of the Delta Whistler Resort in Canada. The
transaction was completed in July.  More than $27.8 million
was provided for the fall in value of investment in
associated companies and for doubtful debts. The company
also wrote off $13.87 million in goodwill. The loss per
share was 5.36 cents, against earnings per share a year ago
of 2.95 cents.

Directors did not declare an interim dividend.  Despite the
losses, Mr Lam said those disposal activities have
generated substantial liquidity for the company, allowing
it to focus on opportunities in Asia-Pacific where asset
prices remained attractive.  (South China Morning Post  23-
Sep-1999)

VICTORY GROUP: Posts first-half loss
------------------------------------
Victory Group recorded a $7.5M net loss for the first half
of this year due to the business downturn, as compared with
a net profit of $28M for the same period in the last year.  
For the six months to June 30, Victory posted a turnover of
$21.8M, down 95% from the same period last year.  It also
suffered from an operating loss of $10.5M for the first
half compared with an operating profit of $17.2M for the
same six month period in 1998.


=================
I N D O N E S I A
=================

BANK BALI: Stanchart waiting suitor in wings
--------------------------------------------
British Standard Chartered PLC (Stanchart), the parent
company of Standard Chartered Bank (SCB) confirmed SCB's
commitment to become the standby buyer of a Bank Bali
rights issue despite charges of fabrication in the process
of acquisition.  Alexander Drake Milton , a Stanchart
official, said the fabrication charge was baseless and drew
no support.

"We are not worried. We are confident of support from the
Indonesian Bank Restructuring Agency (IBRA). Our confidence
is as strong as it was before some BB workers filed the
petition to IBRA," Milton said.

IBRA has handed over the management of Bank Bali to SCB
immediately after its takeover by the government.  Rudy
Ramli, former president of the scandal hit Bank Bali, has
accused SCB of producing false due diligence report about
the financial condition of the bank that led to the
takeover by the government.

Rudy said IBRA conspired with SCB against him and supported
the British bank's plan to take over control of Bank Bali.
Rudy said SCB reported that the bank needed Rp4.3 trillion
(US$ 500 million) for its recapitalization, far larger than
his estimate of Rp3 trillion.  Under a recapitalization
program launched by the government, a bank owners are
required to provide 20% of the fund needed for the
recapitalization to increase its capital adequacy ratio to
a minimum 4%.

Bank Bali is now at the center of a high profile scandal
believed to involve a number of senior officials including
cabinet ministers and a brother of President B.J. Habibie.
(Asia Pulse  22-Sep-1999)

GARUDA INDONESIA: Gov't to take over debt repayment
---------------------------------------------------
The government has decided to take over the repayment of
Garuda Indonesia's debts totalling US$ 1.8 billion to the
US Export Import Bank for the lease of 11 Boeing 737s,
Garuda President Director Abdulgani has said.

"Hopefully, the debt repayment will be started in the near
future," Abdulgani told reporters following a meeting with
President BJ Habibie at Bina Graha state palace here
Wednesday.  (Asia Pulse  23-Sep-1999)

PT ASURANSI JASA INDONESIA: Creditor's bankruptcy rejected
----------------------------------------------------------
The Jakarta Commercial Court has rejected a bankruptcy
petition filed by Taiwan-based Chinatrust Commercial Bank
(CCB) against state general insurance company PT Asuransi
Jasa Indonesia (Jasindo).

Presiding judge Mahdi S Nasution said the plaintiff had
failed to show adequate proof for its claim that it was a
valid creditor to Jasindo.  The plaintiff's lawyer Rahmat
Bastian argued that his client held adequate proof in the
form of a certificate of ownership of a $ US5 million
promissory note issued by a custodian company.

"According to the guarantee agreement with Jasindo, the
ownership certificate issued by the custodian company is a
strong legal document proving that my client is a valid
creditor," Rahmat said.

PT Tripatria Citra Sarana issued in May 1997 promissory
notes worth $ US50 million. The Singaporean branch of the
Union Bank of Switzerland (UBS) acted as the underwriting
agent, with Jasindo as its trustee or guarantor.  UBS then
sold these promissory notes to several parties, including
CCB, which bought $ US5 million of the $ US50 million.

The promissory notes were deposited by the purchasers in a
custodian company called Euroclear, which subsequently
issued a certificate of ownership to every corresponding
purchaser of the notes.  Jasindo's lawyer Lucas S. Halim
said transaction of the promissory note purchasing
agreement, involving UBS, Tripatria and Jasindo, was biased
against Jasindo.

Rahmat said he would appeal the verdict to the Supreme
Court.  CCB filed in late August a bankruptcy claim against
Jasindo at the Jakarta Commercial Court, claiming that
Jasindo as a debt guarantor had failed to take over a
matured $ US5 million promissory note issued by Tripatria.
(Asia Pulse  22-Sep-1999)


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

CAHYA MATA SARAWAK: Posts first-half loss
-----------------------------------------
Cahya Mata Sarawak Bhd has recorded a pre-tax loss of
RM31.6mil for the six months ended June 30, 1999 against a
pre-tax profit of RM86.89mil previously as a result of
losses incurred by the group's banking division.  (Star
Online  23-Sep-1999)

UTAMA BANKING GROUP: Posts first-half loss
------------------------------------------
Utama Banking Group Bhd has recorded an unaudited loss of
RM64.6mil for the first six months to June 30, 1999,
compared with a profit of RM35.8mil previously.  Group
operating pre-tax profit declined to RM30.45mil from
RM123.7mil previously.

The group attributed the performance to a decline in net
interest income to RM59.9mil from RM140.3mil due to lower
utilisation of loans and advances and a sluggish loan
growth.  An increase in the loan loss provision to
RM103.4mil from RM70.4mil also contributed to its losses,
the group said.

"With the national economy recording a positive growth
enabling the group to reduce its loan loss provisions,
coupled with the improvement in operating efficiency, the
Utama Banking group is confident of returning to
profitability for the year," the company said.

Utama Banking said there was a squeeze on the interest
margin and a drastic drop in the base lending rate (BLR)
during the first half of this year.  The BLR had declined
from 12.3% in June 1998 to 7.25% as of June 30, 1999, while
cost of deposits booked by the bank remained relatively
high, explained the Utama Banking group.

Total assets dropped by 17% to RM7.01bil from RM8.48bil in
the corresponding period in 1998.  Core deposits, the group
said, fell 6% to RM4.86bil from RM5.2bil. Its risk weighted
capital ratio stood at 16.7% against 20.8% as at June 30,
1998.  Utama Banking said its net non-performing loans
(NPLs) ratio increased by 9.3% to 21.2% as of end June 30,
1999, from 11.8% previously.

In view of the difficult conditions and uncertainties in
the business environment, the group had increased the loan
loss reserve cover for NPLs to 62.6% from 39.5%.  Utama
Banking said when comparing the loss of the first half to
the overall loss last year of RM469.8mil, the first half of
1999 showed a significant improvement, which was achieved
through effective management of non-performing loans and
improved operating efficiency during the half year. (Star
Online  23-Sep-1999)


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

EYCO GROUP: Wants reconsideration of liquidation order
------------------------------------------------------
The first major casualty of the Asian economic crisis in
the business sector -- the Eyco Group of Companies -- is
not about ready to give up its corporate existence.

The Yutingco-owned appliance maker is set to ask the
corporate overseer to reconsider its order for the group's
liquidation. The Eyco group said contrary to the Securities
and Exchange Commission's (SEC) earlier decision, the
company is "capable of rehabilitating itself and paying off
its debts."

Eyco also argued that involuntary dissolution was a remedy
of last resort and that "the SEC should not resort to
dissolution when the prejudice is not against the public
interest or not an outright abuse of or violations of the
corporate charter."

On September 14, the SEC commission en banc declared the
Eyco group "insolvent" and ordered its dissolution,
reversing the hearing panel's earlier approval of the
group's rehabilitation plan prepared by the Strategies and
Alliance Corp.  The commission en banc also ordered that
all committees created pursuant to the hearing panel's
decision be dissolved and discharged after finding the
Yutingco-owned group insolvent with a capital deficit of
more than two billion Philippine pesos (PhP) (US$50 million
at PhP40.257:US$1).

Eyco said "if only creditor banks gave the viable and
feasible rehabilitation plan the chance it deserved they
will see that such plan provides the adequate remedy which
they demand."

The Yutingco group also said the "unfavorable decision (of
the SEC) comes at a time when Eyco is poised to give
competition a stiff fight. Eyco's Nikon manufacturing brand
used to be the market leader an achievement made within
only two years."

The Yutingco group filed for debt relief in 1997 when it
encountered difficulties in paying debts. At the time,
Eyco's liabilities were only over PhP2.08 billion.
The group is composed of the following subsidiaries: Nikon
Industrial Corp., Nikolite Industrial Corp., 2000
Industries Corp., Trade Hope Industrial Corp., First
Unibrands Food Corp., Integral Steel Corp., Eyco
Properties, Inc. and Thames Phils., Inc.  (Business World  23-
Sep-1999)

MONDRAGON INT'L PHILIPPINES: TRO sought to exclude board
--------------------------------------------------------
The group of ousted Mondragon International Philippines,
Inc. (MIPI) chairman and chief executive Jose Antonio
Gonzalez has asked the Securities and Exchange Commission
(SEC) to issue a temporary restraining order (TRO), barring
the "newly elected" board from holding office.

In a petition, Mr. Gonzalez's group asked the corporate
court to grant their application for a TRO and a
preliminary injunction to stop the firm's creditors from
"assuming and exercising the function as stockholders,
members of the board and officers of MIPI."  The group said
creditors' "explicit violation of rights by directly
invading its prerogative to call its stockholders meeting
illegally conduct the same should not be countenanced and
must be corrected."

The creditor banks include Asian Bank Corp., Far East Bank
and Trust Co. and United Coconut Planters Bank.  The
embattled Gonzalez group also said the acknowledgment of
the new set of officers "will not only unduly confuse and
prejudice (MIPI's) existing creditors, investors, as well
as the public, but will likewise deprive (the Gonzalez
group) of rightful participation in the management of
MIPI."

For their part, the creditors earlier said they are willing
to give up their seats in the firm if a new investor offers
to buy out their interests.  The new board of the hotel and
casino operator is comprised of top executives of the
firm's three creditor banks.

"We do not intend to take over operations of the firm, we
just did this (elect ourselves to the MIPI board) to
protect the interest of the creditor banks," BusinessWorld
earlier reported. MIPI liabilities to the three banks
amount to over $20 million or 800 million Philippine pesos
(PhP).  "As far as we are concerned, last Monday's meeting
is totally illegal and void since our earlier request for
the postponement of the September 20 meeting (to November
15) was approved by the SEC," MIPI legal counsel Jun
Francisco said in an earlier phone interview.

Mondragon has debts of over PhP7 billion (US$173 million at
PhP40.257:US$1). Its lenders include Metropolitan Bank and
Trust Co., TA Bank, Philippine Banking Corp. and Dao Heng
Bank.  (Business World  23-Sep-1999)


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

MHE HOLDINGS: Posts annual loss
-------------------------------
MHE Holdings suffered a net loss of $2.17 million for the
year ended June 30, hurt by a $2 million one-off provision
for inventory and assets of businesses in Malaysia that
will be divested. It had a net profit of $199,000
previously.  Turnover slumped 30 per cent to $10.4 million.
Loss per share was 4.43 cents compared to earnings per
share of 0.41 cent previously. No dividend was declared.
(Straits Times  23-Sep-1999)

PACIFIC CAN INVESTMENT HOLDINGS: Finds white knight with $
----------------------------------------------------------      
The Seatown Group, one of Singapore's largest shipbrokers
which has diversified into construction, has agreed to pump
in at least $23 million in cash to rescue troubled Pacific
Can Investment Holdings.

Judicial managers of the listed company said yesterday they
have inked a deal with See Chee Beng and Wee Yan Siew to
inject Seatown Construction Pte Ltd and Pyramid
Construction Engineering Pte Ltd into Pac Can.  The latter
will pay for it by issuing a minimum of 830 million shares
valued at 10 cents each, giving Seatown a 90 per cent stake
in the company. The "white knight" will also pump in no
less than $23 million into Pac Can to pay off all its
creditors, the main ones being holders of its $20.6 million
loan stock due April 30.

"This deal will result in all the creditors of Pacific Can
being paid off in full . . . shareholders will also benefit
because the share price could go up," said Nicky Tan, one
of three judicial managers at Arthur Andersen.

Pac Can, a company with a long history, is in construction,
can-making and property investment. It has been dogged by a
hotchpotch of ill-conceived investments, weak management
and a constantly bickering board whose directors took turns
throwing out one another.  Matters came to a head in April
when the company failed to pay off the matured loan stock,
immediately triggering a suspension of trading in its
shares. Pac Can eventually went into judicial management on
Sept 3.

Seatown was one of six bidders for Pac Can but will only be
injecting its construction business, valued at no less than
$60 million, into the company. Mr Tan said its bid wasn't
the highest in price but "based on the numbers being
discussed, the most attractive . . . from the synergy point
of view, it is the best".

The other bidders included companies in real estate, e-
commerce and textile, all privately-owned.  Mr Tan said its
independent financial adviser, Tokyo-Mitsubishi
International (Singapore), has concurred that Seatown's bid
was most superior as it offers the best business fit with
Pac Can. Among other factors in its favour is its position
as the largest customer of Trimix, a Pac Can subsidiary.

John Devaras, vice-president of Tokyo-Mitsubishi, pointed
out that Seatown was injecting its construction business
into Pac Can at an attractive price-earnings ratio of six,
which is in line with the market IPO pricing for
construction stocks.  The deal is conditional on Pac Can
getting approvals from the courts, the Stock Exchange of
Singapore and shareholders. Approval is also needed for a
scheme to reduce the stock's par value to 10 cents from 50
cents.

But the deal is not subject to due diligence, said Mr Tan.
He added that he did not encounter "violent objections" to
the deal from major shareholders of Pac Can.  One of them,
Low Hua Kin, who was replaced as company chairman in March,
owned 900,000 loan stocks as at October 1998. Pac Can has
"several thousand" shareholders, many of whom are small
investors. The counter had been a punters' favourite.

One minority shareholder, veteran stock investor Denis
Distant, told BT he welcomed the Seatown deal. "I'm always
in favour of something happening rather than nothing
happening," he said.

He first bought the loan stock some 10 months ago, sold
them and bought in again after First Commercial Bank backed
out of a loan deal with Pac Can. "I bought them six months
before they mature on the thinking that if the company does
not go bust, I will get $1 back. I also bought some shares
so that I can get into the shareholders' meetings but my
main target was the loan stock."

His reading proved right. With the deal, Mr Distant will
make 40 cents for every loan stock, on top of the interest
already earned.  (Business Times, Straits Times  23-Sep-
1999)

SCOTTS HOLDINGS: Posts annual loss                         
----------------------------------                         
Property and hospitality-based Scotts Holdings' net loss
deepened to $14.4 million for the year to June 30, from
$11.6 million in the previous year.

At the bottom line, its losses swelled to $63.6 million
from $17.5 million previously, when it provided a total of
$49.2 million for business risks and a fall in the value of
assets. Group turnover for the year plunged 33.6 per cent
to $52.4 million because of adverse market conditions in
the region and the closure of its Palm Court service
apartment.

"This also adversely impacted operating margins and
occupancies resulting in the increase in operating loss,"
it said in its statement.

Scotts also suffered a foreign exchange loss of $1.18
million during the year compared to a gain of $3.26 million
previously. Net tangible asset backing per share dropped to
76.3 cents from $1.32.  Loss per share was 6.07 cents
against 4.88 cents previously. No dividend was declared.  
On current year prospects, the company said it expected to
return to profitability as regional economies improved.

At an extraordinary general meeting last month,
shareholders approved a reduction in the par value of each
ordinary share from $1 to 20 cents.  The company's
accumulated losses of $94.7 million will be written off and
the balance of $95.1 million will be credited to a capital
reduction reserve.  The company also said it intends to
change its financial year from June 30 to Dec 31, with
effect from Dec 31, 1999.  (Straits Times  23-Sep-1999)


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

KASET THAI SUGAR CO.: Creditors reject rehab plan
-------------------------------------------------
The majority of Kaset Thai Sugar's creditors, led by sugar-
cane planters, yesterday voted down the company's
rehabilitation plan designed by bank creditors and their
adviser.

As a result, the Justice Ministry's Legal Execution
Department -- which is responsible for the sugar-mill case
-- will have to seek a decision from the Bankruptcy Court
either to announce bankruptcy status for the firm and seize
its assets for distribution by the creditors, or allow the
company to resume its normal operations and bring back the
old management team.

If the court rules out the bankruptcy option, Thai Identity
Sugar Group managing director Praphan Siriviriyakul said
that its subsidiary would pursue out-of-court debt-
restructuring negotiations with the creditors.  

Last week, the restructuring plan for Thai Identity Sugar
Co was rejected by the majority of its creditors, becoming
the first such case since the recent establishment of the
Bankruptcy Court. Thai Identity Sugar Co, Kaset Thai Sugar,
and Ruam Phol Industry Nakornsawan Co operate the three
sugar mills under the Thai Identity Sugar group, one of
Thailand's largest sugar producers and exporters.

According to Praphan, the Ruam Phol rehabilitation proposal
is likely to meet the same fate today when creditors are
scheduled to consider the approval of the mill's
restructuring plan.  Thai Identity Sugar Group owes
combined debts of Bt14 billion to creditors, which include
sugar-cane farmers, and trade and bank creditors. The group
hit the headlines earlier in the year when Michael Wansley,
a top insolvency expert with Deloitte Touche Tohmatsu who
was assisting with the restructuring plan for the sugar
group, was gunned down by a motorcycle hitman. Three
executives of the group have been charged with murdering
the Australian auditor.

A source close to the creditor banks said they had failed
to get approval of their proposed debt-restructuring plan
from the majority of the creditors, because the cane
planters are opposed to it. Although the farmers owe a
smaller amount of debt than the banks, they have the
advantage since the current law counts debtors' decisions
on the basis of the number of debtors rather than the
amount of debt.

The plan for Kaset Thai Sugar Co was rejected by 2,910
small creditors, whose combined loans to the company amount
to 1.12 billion baht, while 63 major creditors with
combined loans of 6.27 billion baht approved it.  This
case, as well as the cases of the two other mills, was
filed under the old bankruptcy law. Under the old law, a
business rehabilitation plan or a debt restructuring plan
is required to be approved by at least 50% of all creditors
attending a meeting and their combined loans must be
equivalent to at least 75% of the total loans involved.

In this case, although the combined loans of the major
creditors were equivalent to some 83% of the company's
total 7.49-billion-baht loan, the number of major creditors
was too small when compared with the group of small
creditors.

"The underlying reason is that the cane planters, while
being creditors of the Thai Identity Sugar Group, are also
debtors of the sugar mills. In fact the farmers are debtors
rather than creditors of the mills, thus they fear the
rehabilitation plan submitted by the banks, which includes
a measure to chase the debts for the company," explained
the source.

Thousands of sugar-cane planters are defined as creditors
of the sugar group in addition to about 10 bank creditors,
and 20 trade creditors.  Praphan said the Legal Execution
Department was expected to submit the Thai Identity cases
to the Bankruptcy Court next week, and the court is likely
to take another two months to start the process.  He added
that the group was tipped to succeed in bringing in new
equity partners to assist the restructuring of the three
companies. Taiwan Sugar and Japan's Sumitomo Corp are among
the potential partners for Thai Identity.

Observers said the failure of Thai Identity would be unique
since the debt restructurings of other sugar mills have
already been concluded out of court.  (The Nation, Bangkok
Post  23-Sep-1999)

KR PRECISION: New shares to help complete debt rehab
----------------------------------------------------
KR Precision says it will complete debt restructuring and
fund new technology by placing new shares with existing
shareholders and private investors.

Prudential Asset Management Asia will buy about 45 million
new shares in KR Precision at 20 baht each for a 38.5%
holding.  Existing shareholders will participate in a
rights issue of three shares at 10 baht each for every
share now held.

The capital increase will raise about 1.08 billion baht.
Shareholders will be asked on October 27 to approve the
plan, and to waive mandatory tender offer requirements so
the company can complete the placement to Prudential and
conclude debt restructuring.

Proceeds will be used mainly to repay KR Precision's dollar
loans at 50% of their full face value of about $36 million.
The balance will be used to settle costs associated with
debt restructuring and to replenish working capital.  
(Bangkok Post  23-Sep-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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