TCRAP_Public/991207.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

            Tuesday, December 7, 1999, Vol. 2, No. 238

                                       Headlines


* C H I N A  &  H O N G  K O N G *

ASHITA INDUSTRIES LTD.: Facing winding up petition
BUDGETED TRADING LTD.: Facing winding up petition
DANIEL CLAYTON LTD.: Facing winding up petition
E-ZONE (HONG KONG) LTD.: Facing winding up petition
HIGH PEARL LTD.: Facing winding up petition
HONION SECRETARIAL SERVICES: Facing winding up petition
KENTIME DEVELOPMENT LTD.: Facing winding up petition
NISSI COMPANY LTD.: Facing winding up petition
ROOTES SHOE MFTG.CO.: Facing winding up petition
UNIPLEX INDUSTRIAL LTD.: Facing winding up petition


* I N D O N E S I A *

PT BARITO PASIFIC TIMBER: Posts narrower 9-month loss
PT CHANDRA ASRI PETROCHEM.: Gov't to save company


* K O R E A *

DAEWOO GROUP: Same loss rate for foreign,domestic creditors
DAEWOO MOTOR: GM admits acquisition is important to it


* M A L A Y S I A *

LINGUI DEVELOPMENT: Oil palm plantations sale part of rehab
UTAMA BANKING GROUP: Posts 9-month loss


* T H A I L A N D *

BANGKOK BANK: To create asset mgmt. co. as part of rehab


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

ASHITA INDUSTRIES LTD.: Facing winding up petition
--------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 15 on the petition of
Kingdom International Company for the winding up of Ashita
Industries Limited. A notice of legal appearance must be
filed on or before December 14.

BUDGETED TRADING LTD.: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 22 on the petition of
Super Mate Limited for the winding up of Budgeted Trading
Limited. A notice of legal appearance must be filed on or
before December 21.

DANIEL CLAYTON LTD.: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 29 on the petition of
Yam Kit Ming Ying, Kwan Sui Mui Grace, Cheunk To Ping and
Chan Bing Hung for the winding up of Daniel Clayton
Limited. A notice of legal appearance must be filed on or
before December 28.

E-ZONE (HONG KONG) LTD.: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 29 on the petition of
Wai Lee Video Amusement Co. Limited for the winding up of
E-Zone (Hong Kong) Limited. A notice of legal appearance
must be filed on or before December 28.

HIGH PEARL LTD.: Facing winding up petition
-------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 29 on the petition of
Peoso International Trading Limited for the winding up of
High Pearl Limited. A notice of legal appearance must be
filed on or before December 28.

HONION SECRETARIAL SERVICES: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 22 on the petition of
Super Mate Limited for the winding up of Honion Secretarial
Services Limited. A notice of legal appearance must be
filed on or before December 21.

KENTIME DEVELOPMENT LTD.: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 29 on the petition of
Honest Billion Investment Limited for the winding up of
Kentime Development Limited. A notice of legal appearance
must be filed on or before December 28.

NISSI COMPANY LTD.: Facing winding up petition
----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for December 29 on the petition of
To Yuet Mei for the winding up of Nissi Company Limited. A
notice of legal appearance must be filed on or before
December 28.

ROOTES SHOE MFTG.CO.: Facing winding up petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 26, 2000, on the
petition of Leung Mei Fong for the winding up of Rootes
Shoe Manufacturing Company Limited. A notice of legal
appearance must be filed on or before January 25.

UNIPLEX INDUSTRIAL LTD.: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 19, 2000, on the
petition of Nanyang Commercial Bank Limited for the winding
up of Uniplex Industrial Limited. A notice of legal
appearance must be filed on or before January 18.

WELLTRADE CARGO SERVICES: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 19, 2000, on the
petition of Chartersince Realty (International)Limited for
the winding up of Welltrade Cargo Services Limited. A
notice of legal appearance must be filed on or before
December 14.


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

PT BARITO PASIFIC TIMBER: Posts narrower 9-month loss
-----------------------------------------------------
PT Barito Pasific Timber, Indonesia's largest plywood
maker, said its nine-month loss narrowed as foreign
exchange losses shrank.

Barito's loss fell to Rp66.8 billion ($ US9.2 million) from
Rp358.5 billion in the same period a year ago.  Sales fell
20% to Rp1.3 trillion from Rp1.62 trillion in 1998. Higher
operating costs hit operating profit, which more than
halved to Rp185.3 billion, from Rp503.6 billion for the
same period a year before.  Foreign exchange losses on its
$ US378 million debt narrowed to Rp24.1 billion from
Rp403.3 billion a year ago, sending total other charges to
Rp228.5 billion from Rp801.3 billion a year earlier.
Barito's shares were Rp50, or 8.33% lower at Rp550
recently.  (Asia Pulse  03-Dec-1999)

PT CHANDRA ASRI PETROCHEM.: Gov't to save company
-------------------------------------------------
The government has stressed the importance of saving the
ailing petrochemical giant, PT Chandra Asri Petrochemical
Centre (CAPC) to prop up downstream industries.

Ahmad Gazali, the director general for agrochemicals and
forest products (IKAHH), said CAPC has to be included in
the government's program to revive the sector.  CAPC, the
only company producing olefin product, is vital to maintain
supply of olefin products for domestic consumption like
ethylene and propylene and their derivatives, amid the
soaring prices of imported chemicals, Gazali said.

The prices of imported products soared in term of rupiah as
a result of the sharp depreciation of the country's
currency.  "Without the olefin center, the country's
downstream industry in the chemical sector could not have
survived the prolonged and ravaging crisis," he said.

He said in any country especially in industrialized
nations, olefin and aromatic centers are the backbone
industries for the development of downstream industries.
The government has considered selling the US$ 2 billion
facility, now operating at 70% of its installed capacity,
as it has continued to be in the red since it started
operation in 1995.

The company is one of the largest bad debtors under control
of the Indonesian Bank Restructuring Agency (IBRA), but
considering the vital role of the company in supporting
downstream industries, the government in cooperation with
the Japanese government has set up a consortium called
Japan-Indonesia Petroleum Industrial Corporation (JIPIC)
through which the Japanese government has agreed to provide
a low interest loan to Indonesia to repay the company debt
to Marubeni, a Japanese creditor. The loan would be
converted into participation equity.

Gazali said the capital participation is temporary in
nature as by reducing just a small part of its debt, the
company could earn profit that would attract new investors.
(Asia Pulse  03-Dec-1999)


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

DAEWOO GROUP: Same loss rate for foreign,domestic creditors
-----------------------------------------------------------
The government and domestic creditors of the Daewoo Group
will apply the same loan loss rates to foreign creditors in
handling Daewoo units' debts, a senior government official
said yesterday.

"There is no change in the government stance that the same
loss rate will be applied to Daewoo's domestic and foreign
creditors," the official said.

He said talks are now underway between Daewoo and its
foreign creditors on the final outcome of due-diligence
audits on 12 Daewoo subsidiaries placed under debt-workout
programs.

"Despite the results of due-diligence audits, Daewoo's
foreign creditors will have to accept the same loss rate as
their domestic counterparts," the official said.

The loss rate refers to the percentage of loans made to
Daewoo units, which creditors have to give up under the
rehabilitation programs.  The government stance in handling
Daewoo's debts heralds rough going in negotiations between
Daewoo's domestic creditors and foreign ones on sharing
losses from their exposure to the sinking conglomerate.

Based on the outcome of final due-diligence audits on the
Daewoo units, domestic creditors plan to put forward the
loss rate for each subsidiary to their foreign counterparts
Tuesday.  According to interim due-diligence audits of the
Daewoo subsidiaries, their creditors are expected to lose a
considerable portion of their lending to them.

Creditors of Daewoo Corp., the group's trading and
construction arm, are estimated to collect only 13 percent
of their loans, while creditors of Daewoo Motor Co. and
Daewoo Heavy Industries Inc. are likely to reclaim about 50
percent, respectively.  Meanwhile, Daewoo's domestic
creditors are supposed to sign memoranda of understanding
on the workout plans with the 12 units from this week, as
they have recently finalized the rehabilitation programs.

They will also set up a "management recommendation
committee" which will be charged with appointing new top
managers of the 12 units, creditor bank officials said.
The 12 units also include Daewoo Telecom, Daewoo
Electronics Co., Diners Club of Korea, Daewoo Electronics
Components, Daewoo Motor Sales, Ssangyong Motor, Keangnam
Enterprise, Orion Electric and Daewoo Capital.

An interim due diligence report shows that the combined
assets of the 12 units amounted to 61.2 trillion won as of
the end of August, with their debts totaling 86.8 trillion
won.  Daewoo, the nation's second largest conglomerates in
terms of assets, sought a bailout from its creditors in
late July.  (Korea Herald  06-Dec-1999)

DAEWOO MOTOR: GM admits acquisition is important to it
------------------------------------------------------
A senior GM spokesman said that the acquisition of Daewoo
Motor is an important step in his company's efforts to gain
a foothold in the Asia-Pacific market, including China.

Lawrence B. Zahner Jr., president of GM China said at a
press conference on Saturday that GM would not be able to
establish a strategy for the Asia-Pacific region without
taking Korea into consideration. He added that, GM is
continuing negotiations with the Daewoo group and its
creditors regarding the acquisition of Daewoo Motor.
Zahner denied rumors that GM considering partial
acquisition of production facilities in Kunsan or Poland.

However, Lee Ki-sup, director of GM Korea, who also was at
the press conference, stated that an MOU contract with
Daewoo has no real significance considering the recent
resignation of Daewoo chair Kim Woo-choong and pending
departure of Daewoo Motor president Kim Tae-ku, implying
that other investors may be vying to acquire the Korean
automaker. On Friday, Philip Murtaugh, vice president of GM
Shanghai told reporters that acquiring Daewoo Motor could
give a big boost to sales in China.

Currently, GM does not manufacture appropriate models to
meet the high demand for smaller automobiles in China.
Daewoo Motor's existing models could be appropriate for
such demands, Murtaugh said.  (Digital ChosunIlbo  05-Dec-
1999)


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

LINGUI DEVELOPMENT: Oil palm plantations sale part of rehab
-----------------------------------------------------------
Lingui Developments Bhd's restructuring scheme is expected
to enlarge the company's earnings base, SG Research in a
report said.  Lingui and its associate, Glenealy
Plantations (Malaya) Bhd, have proposed a partnership, in
which it will acquire all of Glenealy's timber assets and
Glenealy all of Lingui's oil palm plantation assets.

After the restructuring, Lingui will focus solely on
timber-related operations while Glenealy will focus solely
on oil palm plantation operations.  SG Research said the
proposed restructuring would allow each company to focus on
separate business functions and give investors a clear
choice--buy Lingui for its timber earnings and Glenealy for
its palm oil plantations revenue.  Lingui has received the
Securities Commission's approval for the restructuring
approval.

The restructuring would also improve Lingui's timber
operations' economies of scale and provide it with a bigger
pool of resources for downstream value-adding activities.
"For example, the proposed plan would double Lingui's
logging coverage area while at the same time, lower its
management cost per hectare," SG Research said.

It added that after the restructuring, Lingui's enlarged
timber base would grow its cashflow, which would help to
service the US$100mil loan taken out by Glenealy to fund
the acquisition of a softwood forest concession in New
Zealand.  SG Research said under the proposed
restructuring, Lingui would be able to provide a wider
range of products at low prices, thus benefitting its
customers in terms of convenience and price.

It said Lingui's log recovery rates would also improve by
bundling Glenealy's medium density fibreboard (MDF)
operations with those of Lingui as the new entity would use
wood waste from plywood production as raw materials.  Under
the post-restructuring, Lingui will be more "geared" to
take advantage of the current upswing in timber prices as a
result of its enlarged capacity, said SG Securities.  (Star
Online  06-Dec-1999)

UTAMA BANKING GROUP: Posts 9-month loss
---------------------------------------
Malaysia's Utama Banking Group Bhd posted a pre-tax loss of
RM3.4 million (US$ 897,097) for the nine months ended Sept
30, 1999 compared to a profit of RM51.6 million in the
previous corresponding period.

Group turnover stood at RM162.8 million, of which, among
others, non-interest income increased by 13.9 percent to
RM53.5 million against the corresponding period of RM47
million.  In a statement here Thursday, the group said
their loan loss provision for the nine-month period
decreased significantly to RM74.7 million from RM107
million in the same period last year.

Utama Banking Group, however, expected its performance in
the fourth quarter to improve further with increase in its
core business, effective cost control and prudent credit
management.  Utama Banking's earnings per share stood at
1.89 sen for the period under review.  (Asia Pulse  03-Dec-
1999)


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

BANGKOK BANK: To create asset mgmt. co. as part of rehab
--------------------------------------------------------
Bangkok Bank last week announced plans to establish an
asset management company to speed up debt restructuring,
which so far has been adopted by only two banks.

The new company is to be called Sinnsuptawee Asset
Management Co Ltd (SAMC). Recapitalised at Bt500 million,
SAMC will take over some of Bangkok BankĄs nonperforming
loans.  Piyapan Tayanithi, executive vicepresident of
Bangkok Bank, told Dow Jones Newswires the bank intends to
transfer nonperforming loans and assets to the new company.
Earlier, the bank's executives said SAMC would handle only
restructured debts to prevent them from becoming
nonperforming again.

Piyapan said, however, it may take several months before
Sinnsuptawee becomes operational as the bank is awaiting
tax amendments on the transfer of assets a measure
instituted by the government as an incentive for getting
problem loans off the books of the country's banks. Prime
Minister Chuan Leekpai two weeks ago urged the Finance
Ministry to look into the legal obstacles, saying there
should be more incentives for the establishment of asset
management companies (AMCs).

Among the recently discussed incentives is the reduction in
land transaction fees for banks moving assets to their
AMCs. This reduction would be 0.01 per cent of total land
value, down from 0.2 per cent.  Moreover, banks could
deduct from their income tax losses incurred from poor loan
management.

Piyapan noted that before the tax amendment, Bangkok Bank
could have transferred collateral assets confiscated from
debtors to its new company.  Bangkok Bank's nonperforming
loans accounted for about 45 per cent of total lending at
the end of September, down from 49 per cent at the end of
June.

However, this figure was still higher than the September
average of about 40 per cent for private commercial banks.
Thai banks are now urged to set up AMCs to deal with
nonperforming loans in order to clean up portfolios,
allowing them to resume past lending capacities. Earlier,
Thai Farmers Bank established an AMC named Chanthaburi
Asset Management Co Ltd, which is to manage Bt80 billion
worth of loans, or onethird of its outstanding
nonperforming loans.  (The Nation  06-Dec-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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                         *** End of Transmission ***