/raid1/www/Hosts/bankrupt/TCRAP_Public/980311.MBX T R O U B L E D  C O M P A N Y  R E P O R T E R

             A S I A  P A C I F I C  

   Wednesday, March 11, 1998, Vol. 1, No. 16
     
                   Headlines


C H I N A

CHINA NATIONAL NONFERROUS: Boss Launches Clean-up
NEW ASIA FAST FOOD: Restructuring Herald Name Change


H O N G K O N G

HANSOM HOLDINGS: SFC Ends Actions in Takeover Bids
OLS GROUP LTD: Explains Malaysia Withdrawal
PEREGRINE INVESTMENTS: Leung Angry Over Ruling
PEREGRINE INVESTMENTS: Leung Unaware of Taxi Loan
YAOHAN HONGKONG: Parties Express Interest in Takeover


I N D O N E S I A

PT Perusahaan Listrik Negara: Stays on Ratings Watch
POLYSINDO: Ratings Lowered to CCC-


J A P A N

KOBE STEEL: Revises Profit Forecast
RESOLUTION AND COLLECTION: To Issue Securities
SANWA SHUTTER CORP.: Downgraded by Goldman Sachs
SATORI ELECTRIC CO.: Pretax Profit Cut
SUMITOMO METAL: Lowers Profit Forecast


K O R E A



M A L A Y S I A

MALAYSIA AIRLINES: Not Facing Cash Flow Problems
PROTON: Seeks Turkish Market for Sales
SIME BANK: RHB Offers to Buy KUB's Sime Bank Stake



P H I L I P P I N E S

PHILIPPINE AIRLINES: Day-to-Day Survival
VISUAL REALITIES: Files for Debt Relief



S I N G A P O R E

ASIA-PACIFIC RESOURCES: UPM-Kymmene to Refinance JV
OVERSEA-CHINESE BANKING: Reports Fall in Profits
OVERSEAS UNION BANK: Reports Fall in Profits



T H A I L A N D

CHAOPHYA MARBLE-GRANITE: To Select Financial Advisor
DATAMAT PUBLIC: Faces Delisting
DATAMAT PUBLIC: Financial Overview
SAHAVIRIYA OA: Urges SET to Rethink Delisting
SURAT CANNING PLC: Trading to Resume Until Delisting
UNITHAI LINE: Submits 1997 Results




=========
C H I N A
=========


CHINA NATIONAL NONFERROUS: Boss Launches Clean-up
----------------------
Zhang Wule, the new man at the helm of industrial
conglomerate China National Nonferrous Metals Corp
(CNNC), has launched a sweeping campaign to end
corruption and reverse losses, industry sources said.
Two senior CNNC officials had already been arrested
and others replaced, the sources said. Investigators
had been sent to CNNC subsidiaries to solve management
problems, inspect the books and uncover the cause of
losses, the sources said.

Mr Zhang, a senior Communist Party official who became
president in January, had made it clear tough measures
would be taken to clean up the corporation,
recentralise control and make officials accountable.
CNNC companies had been banned from international
trade and overseas companies had been told they must
deal directly with the CNNC head office in Beijing,
Chinese and Western sources said.

The People's Daily last month reported that two CNNC
officials in Gansu province - Lanzhou Iron and Steel
Works president Zhang Bingchang and Lanzhou Liancheng
Aluminium Works head Wei Guanqian - were arrested for
accepting bribes and embezzling millions of yuan.
Industry sources said managers at other smelters had
been replaced.
(South China Morning Post 10-Mar-1998)


NEW ASIA FAST FOOD: Restructuring Herald Name Change
------------------------
Shanghai-listed A share New Asia Fast Food will change
its name to Shanghai Guangdong Enterprise Development
Co to reflect the change in its ownership. Guangdong
Enterprise (GDE) bought 41.8 per cent of the company
in April in a bid to establish a foothold in the
Shanghai market.

A company source said GDE decided to change New Asia's
name because it would soon complete an 11-month
restructuring and was ready to launch a new round of
development.

New Asia has halted its money-losing fast-food
business and will become GDE's Shanghai investment
arm.

"The company will not only focus on one business, but
it will diversify," the source said. He did not rule
out the possibilities GDE would inject mainland assets
into New Asia.

Other New Asia subsidiaries - a chain store and a food
research centre - also would be closed soon. GDE said
earlier that New Asia had many hidden bad debts which
were discovered only after it took over the company.

Early this month, GDE sold New Asia's 70 per cent
stake in Shanghai New Asia Commercial Building Co to
the A share's former parent - New Asia Group - for 3.5
million yuan (about HK$3.25 million). The property
lost 11 million yuan last year.
(South China Morning Post 10-Mar-1998)



=================
H O N G K O N G
=================


HANSOM HOLDINGS: SFC Ends Actions in Takeover Bids
----------------------------
The Securities and Futures Commission (SFC) is likely
to take no further action against parties involved in
the proposed takeover of construction contractor
Hansom Holdings, sources said.

This follows the "sincere apologies to the investing
public and the SFC" offered in announcements yesterday
by the mainland parties making the bid, for their
failure to disclose their long-term plans to take over
Hansom as early as five years ago.

Hansom shares will resume trading today after a 10-
month suspension ordered by the watchdog after the
company and the new investors disclosed more details
of their controversial takeover proposals.

The shares were suspended amid rumours the company had
been chosen by the Yunnan municipal government as a
back-door listing vehicle. The rumours sent the shares
up by more than 1,000 per cent in seven weeks, up from
43 cents in March to $5.80 before the suspension.

At the time, Hansom denied any takeover negotiations
were under way. Yesterday, however, it confirmed that
a company controlled by China National Tobacco Corp
and the Yunnan provincial government would pay $48.8
million, or 44 cents a share, for a 52 per cent Hansom
stake owned by Michael Mak Cham-kwong. A general offer
will also be made at the same price.

It also revealed that the mainland parties funded the
purchase by Hansom's former largest shareholder Psyche
Leung to buy into Hansom in 1993, and then offered
loans to Mr Mak to buy Ms Leung's stake in 1996. The
loan arrangement was made to allow the mainland
parties to take over Hansom via a recall of the loans
when mainland regulators approved their plans for a
back-door listing in Hong Kong.

The failure to disclose its long-term intention to
acquire Hansom shares and its loan arrangement with
the largest shareholders of Hansom in 1993 and 1996
was a possible breach of the Takeovers Code, sources
said.

However, it is understood the SFC will now take no
further action against the firms and financial
advisers involved in the two Hansom shareholding
transfers in 1993 and 1996 because of a lack of
evidence.

Sources said Hansom's minority shareholders were now
receiving reasonable compensation because the mainland
parties were making a general offer. If the deal had
gone to the Takeovers Panel, the same end might have
been achieved but only after lengthy discussions. It
is understood that financial advisers involved in the
two earlier share-purchase deals were unaware of the
loan arrangements.
(South China Morning Post 10-Mar-1998)


OLS GROUP LTD: Explains Malaysia Withdrawal
-----------------------------
This statement is made at the request of the Stock
Exchange of Hong Kong Limited.

The Board of Directors of OLS Group Limited (the
"Company") would like to announce that due to the
Asian currencies turmoil in the fourth quarter of
1997, the Company decided to temporarily withdraw its
operation in Malaysia in October 1997. The Company
will consider to invest in the Malaysian market again
when its economy is recovered.

As stated in the prospectus of the Company dated 17th
June 1997, part of the net proceeds of approximately
HK$8 million received by the Company from the New
Issue which is approximately 4% of the new proceeds
was intended to finance the initial capital required
for a construction project and the establishment of a
construction contracting business joint venture in
Malaysia. Due to the aforesaid reason, after deducting
the operating expenses in Malaysia of approximately
HK$2.3 million the remaining net proceeds of HK$5.7
million representing 3% of the new proceeds for
financing the operation in Malaysia will be used for
the provision of additional working capital for the
Company in Hong Kong and the People's Republic of
China. The Directors believe that there will be no
material adverse effect on the forecast as stated in
the prospectus and full details will be disclosed in
the annual report of the Company.

By order of the Board
Alfred Wing-Fung Siu
Chairman and Managing Director

Hong Kong, 7th March 1998

(SEHK 10-Mar-1998)


PEREGRINE INVESTMENTS: Leung Angry Over Ruling
-------------------------
Former Peregrine Investments Holdings managing
director and co-founder Francis Leung Pak-to has hit
back at a court judgment which accused him of putting
his interests ahead of those of the group's creditors
when its equities business was sold to Banque
Nationale de Paris. Mr Leung said the ruling
demonstrated a lack of understanding of the investment
banking business and claimed the judge had not given
him adequate opportunity to answer the court's
criticisms.

Mr Leung said the court's comments had undermined the
reputation and integrity of BNP Prime Peregrine - the
new company - as well as his personal reputation and
that although legal action was unlikely he would "talk
to his lawyers".

The court last week approved BNP's acquisition of
Peregrine's Hong Kong and China equities team run by
Mr Leung, considered one of the collapsed group's
prime assets. In its ruling, Mr Justice Anthony Rogers
said the court approved the deal reluctantly and
expressed grave doubts the needs of the creditors had
been properly addressed.

The judge strongly criticised former Peregrine senior
executives - particularly Mr Leung - for their pay
packages with the new company and for securing a bonus
pool worth US$7 million for employees. The judge
singled out Mr Leung for doubling his salary from
HK$167,000 a month at Peregrine to HK$300,000 at BNP
Prime Peregrine, plus a series of other benefits such
as a HK$50,000 monthly property allowance.

"In view of the expected very high remuneration based
partly on a system of bonuses and other incentives of
the senior employees - or some of them at any rate -
the question obviously arose as to whether the
creditors' interest had been properly looked after in
the negotiations," the judge said.

Mr Leung said: "My pay package was the last thing I
negotiated with BNP. The criticism that we put our
interests ahead of those of the creditors is not true
at all."

"The judge was critical of the bonus payments of US$7
million. From a manager's point of view I think that
amount was not enough, which is why I decided I would
not take a single cent from the bonus pool, otherwise
there would not have been enough to pay my employees
in recognition of their contribution."


PEREGRINE INVESTMENTS: Leung Unaware of Taxi Loan
------------------------
Francis Leung Pak-to "did not have the full picture"
of an unsecured US$260 million loan collapsed group
Peregrine made to an Indonesian taxi company Steady
Safe and said he became aware of it only "at a very
late stage".

The Steady Safe loan was a key factor behind the
collapse of Peregrine Investments Holdings, considered
Hong Kong's premier home-grown investment bank prior
to its January demise.

Describing what Mr Leung termed "a personal tragedy",
the former managing director said he had been spending
90 per cent of his time on the Greater China equities
business and did not directly oversee the fixed-
interest operations.

The fixed-income division was run by Andre Lee, who
was understood to have reported directly to former
chairman and co-founder Philip Tose. Mr Leung said it
was part of Peregrine's culture to allow section heads
considerable autonomy.

"I was spending over 50 per cent of my time in China.
Perhaps that was too much time," Mr Leung said.

Peregrine collapsed after Steady Safe was unable to
repay the $260 million loan after the rupiah plummeted
from about 2,500 to the US dollar when the loan was
granted to about 11,500. The loan represented about a
third of Peregrine's entire capital portfolio as of
December 1996. The bank also had open foreign exchange
and derivative positions. Those positions worsened
dramatically as a result of the Asian economic crisis.
(South China Morning Post 10-Mar-1998)


YAOHAN HONGKONG: Parties Express Interest in Takeover
------------------------
Liquidators for retailer Yaohan Hongkong Corp, which
has debts of $91.5 million, say two parties have
expressed serious interest in buying the company.
Shareholders and creditors yesterday appointed Ernst &
Young partners Matthew O'Driscoll and Wilfred Timso as
liquidators and set up a five-member inspection
committee for the liquidation.

The liquidators revealed Yaohan's loss before the
costs of liquidation was nearly $340 million. It had a
bank balance and other cash amounting to almost
$120,000 on February 9.

Yaohan directors decided to wind up the company last
month, three months after core business Yaohan
Department Stores (HK) went into liquidation with
about $1.1 billion in liabilities.

The department store chain owed $255 million to
Yaohan, its single largest creditor, the liquidators
said.

"To date, more than 10 interested parties have
approached us, but only two of them had written
expressions of interest," Mr O'Driscoll said. He would
not reveal the suitors' identities until a formal
proposal was approved.

"We'll examine the quality of the suitors' businesses
to see if they fit the rescue. We are attempting to
restructure Yaohan in the way we did the former Kin
Son Electronics," Mr O'Driscoll said. The buyers he
was trying to attract for Yaohan did not need to be
retailers.

Last September, property developer Plotio Holdings
launched a purchase scheme including an offer for Kin
Son's listing status for $40.5 million. But creditors
recouped only 10 per cent of their loans. The
potential buyer for Yaohan would not need to shoulder
the liabilities of the department store chain, which
already had been fully liquidated, Mr O'Driscoll said.

Merchant bankers said Yaohan recently had been looking
to fetch more than $35 million for its listing status.
Ernst & Young principal Stephen Liu Yiu-keung said the
liquidators would hold their first meeting with the
inspection committee this month.

The committee consists of three creditors and two
shareholders, including the largest creditor, Mitsui
Leasing and Development (Hong Kong), with exposure of
about $32 million.

Mr Liu said Yaohan Department Stores (HK) had raised
$50 million from sale of inventory and machinery.

"We're trying to put on sale about five luxurious golf
club memberships, hopefully for millions of dollars.
The total amount of cash is likely to be more than
enough to pay off priority creditors' loans," he said.

Yaohan Department Stores has about 5,000 creditors,
mostly staff members, landlords and suppliers. Money
distributed to the 2,700 staff stood at $100 million,
Mr Liu said.
(South China Morning Post 10-Mar-1998)


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

PT Perusahaan Listrik Negara: Stays on Ratings Watch
--------------------------
STANDARD and Poor's single "B" ratings on the
Indonesian independent power (IPP) projects bonds and
bank loan ratings, placed on December 1 last year
remained on CreditWatch with negative implications.

The ratings are for Paiton Energy Funding B.V US$180
million (US$1 = RM4.07) senior secured bonds due 2014
(guaranteed by P.T Paiton Energy Co) and CE
Indonesia Funding Corp's US$400 million loan facility
(funding to Dieng and Patuha geothermal projects).
The other project bonds and bank loan with the "B"
rating are DSPL Finance Co B.V's US$150 million 9.12
per cent senior secured notes due 2010 (guaranteed
by Dayabumi Salak Pratama Ltd) and MNL Indonesia
Funding Corp's US$250 million bank loan facility (for
Wang Windu Geothermal Project).

Standard and Poor's in a statement said the recent
attempt by state-owned utility PT Perusahaan Listrik
Negara (Persero) (PLN) to make partial payments in
rupiahs instead of contractually required US dollars
may potentially result in rating downgrades to at
least the triple "C" level from the single "B"
ratings.

It said as the economic and financial situation in
Indonesia continues to deteriorate, operating IPPs are
increasingly at risk of defaulting on their fixed
obligations. Such a situation, if continuously
sustained, which amounts to approximately 25 per cent
of the amount due at current exchange rates of 10,000
rupiahs to the dollar, likely would cause the power
project companies to default on their debt.

If the Government, vis-a-vis the Ministries of Finance
and Mines and Energy, does not remedy the situation by
providing PLN with sufficient funds to cover the
shortfall in purchased power payments, the project
bond and loan ratings could drop to as low as
triple C.
(BusinessTimes 10-Mar-1998)


POLYSINDO: Ratings Lowered to CCC-
----------------------
Standard & Poor's today lowered to triple-'C'-minus
from triple-'C'-plus its ratings on the US$125
million 13% notes due 2001 issued by P.T. Polysindo
Eka Perkasa (Polysindo) and on the US$260 million
11.375% notes due 2006 and US$200 million notes due
2007 issued by Polysindo International Finance B.V.
(both guaranteed by Polysindo).

The downgrade reflects the failure to pay short-term
obligations in a timely manner. Standard & Poor's
continues to monitor the debt-repayment situation
carefully, especially for an indication of the
company's inability to successfully renegotiate its
short-term debt, which could lead to a repayment
acceleration of its long-term obligations. The ratings
are removed from CreditWatch, where they were placed
with negative implications on Jan. 9, 1998.
An inability to renegotiate short-term debt could lead
to a cross-default on bond issues, and result in a
further lowering of the rating on the rated
obligations, possibly to 'D'.

Polysindo has chosen to maintain its level of
liquidity and opted to delay payments on a short-term
obligation, reducing the comfort level provided by the
liquid reserves with the company. The company has
other short-term obligations maturing in the near
term, and the decision to preserve liquidity could
lead to a failure to meet repayment on these other
short-term obligations.
(S&P Creditwire 10-Mar-1998)



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

KOBE STEEL: Revises Profit Forecast
-------------------------
Kobe Steel revised its parent net forecast downwards
by almost two-thirds, to give a net profit of Y8bn,
compard with last year's figure of Y21.69bn, and the
earlier forecast of Y11bn. Pre-tax profit is expected
to fall 6 percent to Y25bn, and the dividend will
remain suspended.
(Financial Times 09-Mar-1998)


RESOLUTION AND COLLECTION: To Issue Securities
-------------------------
Japan's Resolution and Collection Bank, the entity
charged with directing the cleanup of failed financial
institutions, plans to issue securities on the
Euromarket backed by roughly 130 billion yen of
distressed real estate loans.

The asset-backed offering, which could come as early
as April, is expected to raise 30-40 billion yen,
sources close to the matter say.

Originally set up to handle only credit-cooperative
failures, the RCB has relied primarily on short-term
financing. But with its mandate now expanded, the
entity aims to widen its financing pipeline as it
braces for possible future failures in Japan's
financial sector.

The offering scheme adopted by the RCB may become a
model for Japanese banks that are scrambling to remove
troubled loans from their books, banking analysts say.

Under the format, the RCB will transfer troubled real
estate loans to a special-purpose corporation as
collateral for a loan from the corporation. Set up on
the Cayman Islands, the special-purpose corporation
will repackage the real estate loans into five-year
securities to be underwritten by the European unit of
Daiwa Securities Co. (8601).

The offering will be backed by a double layer of
guarantees - the RCB's loan liability will be
guaranteed by the Deposit Insurance Corp., while the
principal and interest of the securities themselves
will be insured by Mitsui Marine & Fire Insurance Co.
(8752).

The goal is to win a triple-A credit rating, which
would make the offering attractive to institutional
investors.
(Nihon Keizai Shimbun 07-Mar-1998)


SANWA SHUTTER CORP.: Downgraded by Goldman Sachs
-------------------------
Sanwa Shutter Corp. (5929 JP ) fell 18 yen to 685.
The shutter maker was downgraded to "market
underperform" from "market outperform" by analyst
Masahiro Iwano at Goldman Sachs & Co.
(Bloomberg Japan Equity Movers 10-Mar-1998)


SATORI ELECTRIC CO.: Pretax Profit Cut
-------------------------
Satori Electric Co. (7420 JP ) fell 190 yen to
1,750. The semiconductor trading company yesterday cut
its pretax profit forecast 22.6 percent to 2.4 billion
yen for the year ending in May. That's 21.3 percent
less than the most recent forecast by Toyo Keizai.
(Bloomberg Japan Equity Movers 10-Mar-1998)


SUMITOMO METAL: Lowers Profit Forecast
--------------------------
Sumitomo Metal expects net profits of Y5bn, down 59
percent, rather than the 24 percent increase
previously forecast.
(Financial Times 09-Mar-1998)


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




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


MALAYSIA AIRLINES: Not Facing Cash Flow Problems
-----------------------
The depreciation of the ringgit against most major
currencies, while expected to affect Malaysia
Airlines' profitability, has not caused cash flow
problems for the company.

The carrier's chairman Tan Sri Tajudin Ramli said
although there was a noticeable drop in passenger
volume in some sectors, the company continues to
be in a healthy operating environment.

When the books for the current financial year are
closed the company might show less favourable results,
compared with the year before, due to the lower
ringgit. This is especially so since it has a high
debt servicing budget following its recent purchases
of new airplanes.

The airline plans to buy 25 aircraft from Boeing in a
RM10 billion deal closed early last year.
Part of the fundings for the purchase is to be raised
from the airline's biggest restructuring exercise ever
since its incorporation. The exercise, announced last
April, is to churn out about RM2.37 billion.

For the first six months ended Sept 30, the airline's
pre-tax profit dropped 69.5 per cent to RM47.32
million from about RM155.28 million in the comparable
period last year. The drop is mainly due to the
foreign exchange losses of RM237.69 million recorded
during the period under review. In the year ended
March 31, 1997, Malaysia Airlines posted a group pre-
tax profit of RM349.41 million, a 39.1 per cent jump
from the previous year.

Currently, about 60 per cent of MAS operations are in
foreign currencies, which incidentally could offer it
some protection against the vagaries of the foreign
exchange market.
(New Straits Times 04-Mar-1998)


PROTON: Seeks Turkish Market for Sales
------------------------------
Proton, which is bracing for a 60% drop in car sales
in Malaysia this year due to the economic slowdown,
may very well find an alternative lucrative market in
Turkey. Jetpa Holding, the sole distributor of the
Malaysian national car for the Turkish market, is
confident of selling about 100,000 units a year in the
country. This confidence was based on market research
and the strong demand for Proton cars since their
debut in Turkey last week, Jetpa chairman Fadil
Agunduz said.

"Proton's potential to become a favourite among
Turkish car buyers was evident when 1,200 units were
bought in barely three months of promotion," he told
Malaysian reporters invited to cover the launch.

He said the bookings were made even before the buyers
had seen or touched the car and "when not a single
Proton had reached Turkey's soil."

Jetpa is one of Turkey's largest companies involved in
the automotive, housing, electrical goods and hotel
industries. It owns the country's largest five-star
hotel resort, Caprice Hotel, which is worth US$105mil.
(The Star Online 10-Mar-1998)


SIME BANK: RHB offers to buy KUB's Sime Bank stake
---------------------------
KUB Malaysia Bhd has received an "in principle" offer
from Rashid Hussain Bhd (RHB) to buy its entire 30.01%
equity stake in Sime Bank Bhd.

KUB told the KLSE in a statement yesterday that
"discussions on the matter are in progress."

This followed Sime Darby Bhd's announcement over the
weekend that it had received an "in principle" offer
from RHB to buy its entire 60.35% equity interest in
Sime Bank.

Both Sime Darby and KUB have requested continued
suspension of trading in their shares on the KLSE
pending further announcements.

RHB had on March 3 said it had obtained the blessings
of Bank Negara to seek a merger of its banking unit
RHB Bank with Sime Bank as its negotiations with
Commerce Asset-Holding Bhd (CAHB) had reached an
impasse.

RHB was among the first groups to respond to the
government's call for mergers within the banking
fraternity to create bigger and stronger banks in the
country.
(The Star Online 10-Mar-1998)

KUB is negotiating with the government to receive a
large stake in a lucrative mining company on favorable
terms, according to government officials and bankers
close to the situation. That deal would help
compensate for losses KUB might incur as a result of
Sime Bank's rescue. Because KUB has powerful ties to
Malaysia's ruling party, the company appears likely to
get its way. And that could exacerbate concerns that
Malaysia's government is using state funds to aid
politically connected groups at taxpayers' expense.
(Wall Street Journal 10-Mar-1998)



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


PHILIPPINE AIRLINES: Day-to-Day Survival
----------------------
Yesterday, Philippine Airlines said it surviving on a
"day-to-day" basis. The drop in Asian currencies
against the dollar has hit Philippine Airlines hard,
because a large potion of its costs are paid in
dollars. Furthermore, passenger revenue is down
sharply as the Asian crisis has forced Philippine
companies to stop ordering high-priced business-class
tickets. But all those layoffs may be a bit easier to
pull off than they might have been a few years ago;
the airline was semiprivatized in 1992 after being
completely owned by the government since 1941.
(The Wall Street Journal 10-Mar-1998)


VISUAL REALITIES: Files for Debt Relief
------------------------
A television production outfit is asking the
Securities and  Exchange Commission (SEC) to allow it
to suspend its  debt payments after being hit hard by
the country's  economic woes. Visual Realities, Inc.
(VRI) is the twelfth  firm to file for debt relief
this year. Among the firm's  projects are a weekly
television series called  "Imbestigasyon," which
highlights the operation of the  Philippine National
Police (PNP), as well as the cooking  show "What's
Cooking." VRI also produced the video  advertisement
of Duvaz Corp. for a building project in  Makati.
Duvaz is among the firms which have filed for  debt
relief last year. In its petition, the firm
specifically  sought the SEC's intervention for debt
relief from its loan  obligations totaling 1.45
million Philippine pesos (PhP).
(BusinessWorld Online 10-Mar-1998)



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


ASIA-PACIFIC RESOURCES: UPM-Kymmene to Refinance JV
---------------------------
UPM-Kyummene, Europe's largest forestry group, has
agreed to inject $235m to help refinance its troubled
joint venture with Aisa Pacific Resources
International (April), the Singapore-based paper
manufacturer. The Finnish company, which last
September announced a share swap with April in its
fine paper operations, said the Asian economic turmoil
had made it necessary to renegotiate the terms of the
deal. The move follows April's failure to raise
sufficient loan capital to finance the construciton of
new paper mills in Indonesia, which need to be
completed before the share swap with UPM-Kymmene can
take place.
(Financial Times 09-Mar-1998)


OVERSEA-CHINESE BANKING: Reports Fall in Profits
---------------------------
Oversea-Chinese Banking Corp. (OCBC) reported an 18
percent drop in profits for 1997 to S$581.1m, after
setting aside provisions of S$569.3m.
(Financial Times 09-Mar-1998)


OVERSEAS UNION BANK: Reports Fall in Profits
---------------------------
Overseas Union Bank (OUB), one of the country's four
biggest, reported a near-18 percent fall in net profit
last year to S$254m (US$154m) after increasing
provisions to S$317m.
(Financial Times 09-Mar-1998)



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


CHAOPHYA MARBLE-GRANITE: To Select Financial Advisor
---------------------------
As being informed its securities may face delisting
after considering 1997 performance, Chaophya Marble-
Granite Plc, complying with Clause 30/2 of the SET's
rules, would like to defend its securities from
delisting by appointing financial adviser who will be
responsible for compilation of restructuring plan.
(Stock Exchange of Thailand 10-Mar-1998)


DATAMAT PUBLIC: Faces Delisting
--------------------------
The Datamat Public Company Limited (DTM) has submitted
its audited financial statements for the year ended
December 31, 1997 to the SET. The company's financial
statements shows a net loss of (727.20) million baht
and net tangible assets (NTA) of (175.30) million
baht. This means NTA are equal to (32.68) per cent of
the company's 536.37 million baht paid-up capital. As
a result, the company faces possible delisting

Therefore, the Exchange will proceed as follows under
its rules and regulations concerning a possible
delisting: 1. Formally announce to the general publics
that DTM is facing possible delisting and post an SP
sign to prohibit further trading of 10 March 1998 on
DTM. 2. Allow trading of DTM from 11 March 1998 to 9
April 1998 to giveshareholders a chance to trade the
company's securities.
(The Securities Exchange of Thailand 10-Mar-1998)


DATAMAT PUBLIC: Financial Overview
-------------------------
Audited Yearly F/S and Consolidated F/S (F45-3) for
Datamat Public Company Ltd. (DTM) reports audited
annual financial statements as follows.

                         (In thousands)
                      Ending December 31,
                            For year
             
                    Year       1997       1996

Net profit (loss)            (727,197)  (169,327)
EPS (baht)                    (13.56)     (3.81)

(The Securities Exchange of Thailand 10-Mar-1998)


SAHAVIRIYA OA: Urges SET to Rethink Delisting
----------------------------
Referring to a report saying Sahaviriya OA Plc may
face delisting, the company would like to clarify the
depleting performance as of 1997 mainly was devastated
by loss on foreign exchange rate staying at
Bt1,527.9m. Worse, the company must shoulder leaping
interest expenses due to interest rate hike at home
and severely cash-strapped economy. Urging its
securities should not be delisted from the stock
market, the company claimed it strives to find
solutions to this by setting off austerity scheme,
selecting financial adviser responsible for
negotiations with creditors and capital restructuring.
However, the company is seeking financial adviser
which will compile a restructuring plan. Expectedly,
the plan will be filed to the SET on the deadline.
(The Securities Exchange of Thailand 10-Mar-1998)


SURAT CANNING PLC: Trading to Resume Until Delisting
---------------------------
According to order of board of the SET that Surat
Canning Plc's securities be delisted, the SET
announced securities trading on SURAT will be allowed
to resume during Mar 2-30, 1998, and the SET will
delist securities of SURAT on Mar 31, 1998.

Previously, SURAT had not filed 1997 audited financial
statements for the period ending Dec 31, 1997 to the
SET and it was 5 consecutive working days delay, which
the company expected to circulate by Mar 25, 1998. The
SET, thus, approved securities trading on SURAT. Its
securities will be delisted from the stock market on
Mar 31, 1998, which detail was published in SET DAILY
issued on Feb 26, 1998.
(The Securities Exchange of Thailand 10-Mar-1998)


UNITHAI LINE: Submits 1997 Results
-------------------------
We submit herewith the reviewed Financial Statements
for Unithai Line Public Company Limited and the
Consolidated Financial Statements for the  
company and its subsidiaries for the year ended 31
December 1997 together with summary of financial
status and operation of the company.
  
                     Million Baht   Percentage
                     ------------   ----------
Increase in
  Total Revenues        158.411        8.94

Increase in
  Total Expenses      2,602.406      140.58

Increase in Net Loss  2,443.995    3,068.33

The Company reports a consolidated net loss of
2,523.648 million Baht for the year ended December 31,
1997 compared to a consolidated net loss of 79.652
million Baht for the year ended December 31, 1997. The
increase of net loss 2,443.995 million Baht or
3,068.33 percent compared to 1996. The increase in
expenses was attributable from loss of subsidiaries &
associated companies  (503.737 million  Baht),
interest expenses (182.440 million Baht) and
(1,513.665 million Baht) loss on the application of
the managed float exchange system (1,499.269).
(The Securities Exchange of Thailand 10-Mar-1998)




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 1998. All rights reserved. This material is
copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources
believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $875 per
month delivered via e-mail. Additional e-mail
subscriptions for members of the same firm for the
term of the initial subscription or balance thereof
are $25 each. For subscription information, contact
Christopher Beard at
301/951-6400.
* * * End of Transmission * * *