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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      

      Wednesday, April 22, 1998, Vol. 1, No. 45

                    Headlines


C H I N A   &   H O N G   K O N G

CATHAY PACIFIC: Shares Move on Rumoured Restructuring
CHI CHEUNG: 1997 Results Announcement
HANSOM HOLDINGS: South Hong Fails to Attract Buyer
MANSION HOUSE: Will Contest Writ
PAM & FRANK: Parallel Trading Commences
TSINGTAO BREWERY: 1997 Results Announcement


J A P A N  

YAOHAN GROUP: President of Failed Stores Dies


K O R E A

DONGSUH SECURITIES: Bankrupt Firm Acquired by U.S. Fund
HANBO GROUP: Jailed Head of Group Gets Longer Sentence
HANBO STEEL: Creditor Banks Look to International Bidding
KIA MOTORS: Former Chairman Faces Charges on Lobbying


M A L A Y S I A

ASIA MALT: Uniphoenix Subsidiary Under Receivership
EKRAN BHD: Units Request Extension
MALAYAN UNITED: Franklin Resources Buyer of SCMP Stake
PISCES GROUP: Subsidiaries Placed Under Judicial Management


P H I L I P P I N E S

FINANCIERA MANILA: SEC Dismisses Debt Relief Plea


S I N G A P O R E

CSA HOLDINGS: Announces 56% Drop in Profit


T H A I L A N D

BANGKOK BANK: Provisions Pull Down Profit 98.5%
TELECOMASIA: Seeks Increase in Foreign Ownership
WONGPAITOON GROUP: To Borrow $100 Million from Daiwa



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

CATHAY PACIFIC: Shares Move on Rumoured Restructuring
-----------------------------------------------------
Cathay Pacific Airways shares powered to their strongest
gain in two months yesterday amid rumours of a looming
restructuring among its majority shareholders. Brokers said
the stock was buoyed by speculation that Citic Pacific,
which holds 25 per cent of Cathay, was about to offload
part or all of its stake to ease its heavy debt burden. The
most likely buyer according to the rumours was mainland-
controlled China National Aviation Corp, which already
holds a controlling stake in Hong Kong's Dragonair. All
three parties denied the rumours and said they had no
knowledge that a share change was about to take place.

Analysts said it was unlikely Citic would sell out of
Cathay at the present level as the company paid $11 a share
when it increased its stake in the airline from 10 per cent
to 25 per cent in April 1996. Other analysts said the
strength of Cathay's shares over the past month - even as
passenger levels continue to slump - suggested preparation
for a sale of the airline's stock may well be under way.
Citic may want to sell its Cathay Pacific stake to ease its
debt burden, which reached a net $22.5 billion at the end
of last year due to infrastructure investments in the
mainland and its purchase of a 20 per cent stake in CLP
Holdings.

Brokers said China National Aviation Corp may want to
purchase the Cathay Pacific stake from Citic in order to
expand its presence in Hong Kong's aviation industry.
(South China Morning Post 21-Apr-1998)


CHI CHEUNG: 1997 Results Announcement
-------------------------------------
For the period January 1, 1997 to December 31, 1997, Chi
Cheung Investment Company Ltd. reported a loss of
HK$67,099,504 on turnover of HK$560,886,693. This
corresponds to a profit of HK$101,198,281 on turnover of
HK$507,822,444 for the corresponding period in 1996.
(SEHK 20-Apr-1998)


HANSOM HOLDINGS: South Hong Fails to Attract Buyer
--------------------------------------------------
The board of directors of South Hong Investment Limited
wishes to announce that the unconditional cash offer by BNP
Prime Peregrine Securities Limited on behalf of the Offeror
for all the issued shares in Hansom Holdings (other than
those already owned by or agreed to be acquired by the
Offeror or parties acting in concert with it) closed at
4:00 p.m. on 17th April, 1998. No acceptances to the Offer
have been received.

Accordingly, upon closing of the Offer, the Offeror
continued to hold 110,835,652 Shares purchased pursuant to
the sale and purchase agreement dated 6th March, 1998,
which represented approximately 52 per cent. of the issued
share capital of the Company.  An aggregate of 102,250,048
Shares were held by the public, representing approximately
48 per cent. of the issued share capital of the Company.

By Order of the Board of
Hansom Holdings Limited
Tie Zhenguo
Vice Chairman

By Order of the Board of
South Hong Investment Limited
Cheng Hau Yan
Managing Director

Hong Kong, 17th April, 1998

(SEHK 20-Apr-1998)


MANSION HOUSE: Will Contest Writ
--------------------------------
A writ has been issued against a subsidiary of Mansion
House Group Limited. It will be defended. It was announced
on 7th April, 1998 that an Account Executive of Mansion
House Securities (F.E.) Limited ("MHSL"), a member of the
Stock Exchange of Hong Kong Limited and a subsidiary of  
Mansion House Group Limited ("the Company"), had gone
missing and that certain allegations had been made against
him by a customer. On 9th April, 1998 a writ was issued in
Hong Kong against MHSL, seeking amongst other things a
declaration that the customer is entitled to the return of
certain shares in various companies, valued in Hong Kong
dollars, Singapore dollars or Malaysian Ringgit. The
alleged values of the shares in question (translated into
Hong Kong dollars where appropriate at the rates 1
Singapore dollar = 4.78 Hong Kong dollars, 1 Malaysian
Ringgit = 2.01 Hong Kong dollars being the approximate
rates of exchange on 17th April, 1998) were in aggregate
HK$68,828,020 (made up of 40,000 Singapore Dollars,
253,491.80 Malaysian Ringgit and 68,127,301.47 Hong Kong
Dollars).

The writ also seeks an order for the return of those
shares. MHSL has been advised by lawyers that on its face
the writ reveals no cause of action and it is not a ware of
any evidence supporting the allegations made in the writ.
MHSL will vigorously defend the proceedings.

By a letter dated 7th April, 1998, MHSL through its
solicitors denied the alleged position of the customer and
stated that his current positions were in fact as follows:

Hong Kong dollars $ 544.87
Singapore dollars $ 5.28
Malaysian ringgit MYR 9.07

These positions amounted in aggregate to approximately
HK$588 (using the rates  of exchange referred to above). In
these circumstances no provision has been made in the books
of MHSL in respect of any potential contingent liability in
connection with the allegations. The unaudited net asset
value of the Company at 30th June 1997 was HK$0.58 per
Share and HK$169,236,733 in aggregate.

The Company will make further announcements as and when
appropriate.

By Order of the Board
Irene Wai-Yin So
Executive Director

Hong Kong, 18th April 1998
(SEHK 20-Apr-1998)


PAM & FRANK: Parallel Trading Commences
---------------------------------------
Members are requested to note that the parallel trading in
the ordinary shares of Pam & Frank International Holdings
Limited will commence at 10:00 a.m. on Wednesday, 22/4/98
under the following particulars:

Stock Code  Stock Short NameBoard Lot   Certificate Colour
----------  -------------------------   ------------------
431 PAM & FRANK-NEW 2,000   Green
2950PAM & FRANK-OLD 1,000   Grey

Members are requested to note that all existing share
certificates of the Company, in the colour of grey, for any
number of shares will be deemed to be certificates, and
will be effective as document of title, for one half
of that number of shares.

The Stock Exchange has received a message from Pam & Frank
International Holdings Limited which is reproduced as
follows:

"In order to alleviate the difficulties arising from the
existence of odd lots of the Old Shares as a result of the
Capital Reduction, the Company has appointed Pacific
Challenge Securities Limited to match the sale and
purchase of odd lots of the Old Shares during the period
from 22nd April, 1998 to 14th May, 1998, both days
inclusive.  

Hong Kong, 20th April, 1998"
(SEHK 20-Apr-1998)


TSINGTAO BREWERY: 1997 Results Announcement
-------------------------------------------
For the period January 1, 1997 to December 31, 1997,
Tsingtao Brewery Company Ltd. reported a profit of RMB28.3m
on turnover of RMB1.44bn. This corresponds to a profit of
RMB25.6m on turnover of RMB1.43bn during the corresponding
period in 1996.

On 16th October, 1997, Tsingtao Brewery Xi'an Company
Limited ("Xi'an") entered into a debt-restructuring
agreement with two of its bankers. Pursuant to the
agreement, the banks agreed to forgive the interest on
long-term loans totaling RMB115,790,000.  As a result,
accrued interest of approximately RMB19,708,000 was
forgiven and the corresponding interest for current year
was waived.

As at 31st December 1997 the board of directors considered
it appropriate to increase the bad debt provision for
certain of the Group's aged accounts receivable and other
receivables by approximately RMB37,519,000.
(SEHK 20-Apr-1998)


=========
J A P A N  
=========

YAOHAN GROUP: President of Failed Stores Dies
---------------------------------------------
Mitsumasa Wada, the president of the Yaohan supermarket
chain that expanded aggressively in the 1980s but was
subsequently buried by debt and failed last year, died. He
was 59. Wada became president of Yaohan last year, after
spending much of his career developing the company's
overseas operations, particularly in Singapore, Kyodo News
reported. The troubled Yaohan group built one store after
another in Asia and North America during Japan's economic
boom in the 1980s, but the growth strategy saddled the
company with heavy debt.

Yaohan, which had filed for protection with about $1.42
billion in red ink, was among a slew of Japanese companies
that went bankrupt last year. The company has begun trying
to rehabilitate itself with the aid of Japanese supermarket
giant Jusco Co.
(AP Wire 20-Apr-1998)


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

DONGSUH SECURITIES: Bankrupt Firm Acquired by U.S. Fund
-------------------------------------------------------
A United States fund has agreed to take over bankrupt
Dongsuh Securities, the first foreign acquisition of a
South Korean financial institution this year, company
officials said yesterday. The deal was valued at US$250
million. Horizon Holdings will acquire a 51 per cent stake
in Dongsuh by investing 53 billion won (about HK$296
million) initially and later injecting funds into the
brokerage house through the purchase of real estate
holdings, he said.

Dongsuh, formerly the country's fourth-largest securities
house, closed its doors in December after its parent
Kukdong Group collapsed, falling victim to Asia's
devastating financial crisis.

Horizon agreed to buy Dongsuh's real estate worth 210
billion won and subordinated bonds worth 90 billion won,
the spokesman said, adding the Korean firm would be able to
resume operations next month.

"We have almost completed deals with local creditors to
convert our debt into long-term obligations and
securities," the Dongsuh spokesman said.

He said Horizon, an investment trust firm with assets worth
about US$12 billion, promised to normalise Dongsuh's
operations with a "long-term plan to expand its business
base in South Korea."
(South China Morning Post 21-Apr-1998)


HANBO GROUP: Jailed Head of Group Gets Longer Sentence
------------------------------------------------------
A South Korean court yesterday sentenced the jailed   head
of the bankrupt Hanbo Group to another one and a   half
years in prison for doling out kickbacks to politicians in
return for favours. An official at the Seoul District Court
said the 70-year-old Chung Tae Soo was sentenced in
addition to the 15 years he received last December from the
supreme court on charges of embezzlement and bribery. Chung
was convicted last year for embezzling 191.1 billion won of
company funds and bribing politicians and former bank heads
including a cabinet minister and four MPs in return for
loans and favours.

The Hanbo scandal, which erupted in January 1997 when the
Hanbo group collapsed, opened a sordid trail of corruption
which reached the presidential Blue House and tarnished the
outgoing administration of Kim Young Sam.
(Singapore BusinessTimes 21-Apr-1998)


HANBO STEEL: Creditor Banks Look to International Bidding
---------------------------------------------------------
Creditor banks decided to put insolvent Hanbo Steel up for
sale through international bidding. A group of 15 creditor
banks led by Korea First Bank agreed in a meeting Monday to
place facilities and plant sites in Hanbo's Tangjin A and B
districts under international bidding as soon as possible.
Sales will be based on the pricing, method and plans  
suggested by bidders, creditor sources said. Creditor banks
also agreed to provide one-year lending roll-over for
Hanbo's subcontractors after their loans come due as of
April 30.
(Asia Pulse 21-Apr-1998)


KIA MOTORS: Former Chairman Faces Charges on Lobbying
-----------------------------------------------------
Former Kia Motors chairman Kim Sun-hong will be summoned
this week by prosecutors for questioning on allegations
that he amassed illegal lobbying funds to maintain his
managerial grip on Kia after the company went bust last
July, officials said yesterday. The prosecution move came
after investigators imposed a travel ban on former Kia
Motors' president Park Je-hyuk, one of Kim's confidants who
was sacked last week, pending an investigation into
allegations that Kia's former management amassed illegal
lobbying funds.

The prosecution action was part of a widening probe into
policy failures and government malpractices that led to the
nation's foreign exchange crisis late last year. Since Kia
Motors collapsed under heavy debts last July, Kim and Park
had staged a desperate struggle to retain their managerial
grip, aggravating the country's economic debacle. Kia's
collapse prompted a wave of major corporate bankruptcies,
which battered South Korea's financial institutions and led
to a $5.7 billion bailout from the International Monetary
Fund (IMF) last December.
(Korea Herald 22-Apr-1998)


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

ASIA MALT: Uniphoenix Subsidiary Under Receivership
---------------------------------------------------
Asia Malt Sdn Bhd, a subsidiary of Uniphoenix Corporation
Bhd, has been placed under receivership by Oriental Bank
Bhd with effect from April 17, 1998. Oriental Bank has
appointed Mak Kum Choon and Robert Tan Bun Poo of Kassim
Chan & Co, as joint receivers and managers. The bank had
provided Asia Malt a term loan of RM12 million
(US$1=RM3.7).

The company said in a statement Monday that Asia Malt,  
incorporated with the intention of setting up a malt  
production facility, to meet the growing demand for malt
and malt products to the South East Asia region, had run
into problems arising with Asia Malt's technical
consultants. The project was halted in June 1995 after
being 80 percent completed. Uniphoenix said Asia Malt, has
to date, expended approximately RM23 million (inclusive of
the RM12 million term loan) on the acquisition of assets
and the construction of the factory building).

It said since the construction of the project, Uniphoenix  
has been servicing the interest and installments to
Oriental  Bank, on behalf of Asia Malt, but since the
economic crisis, has been unable to continue to do so. It
also explained that prior to being placed under
receivership, consultants were appointed to assist Asia
Malt in the disposal of the manufacturing facilities but
there were no takers.
(Asia Pulse 21-Apr-1998)


EKRAN BHD: Units Request Extension
----------------------------------
Granite Industries Bhd, PWE Industries Bhd and Pacific
Chemicals Bhd yesterday requested that the suspension of
trading in their shares be extended. They will make further
announcements to the Kuala Lumpur Stock Exchange once their
parent company, Ekran Bhd, finalises its proposed
restructuring.
(The Straits Times 21-Apr-1998)


MALAYAN UNITED: Franklin Resources Buyer of SCMP Stake
------------------------------------------------------
United States-based fund management group Franklin
Resources has bought an 11.18 per cent stake in SCMP
(Holdings), making it the company's second-largest
shareholder after Robert Kuok's Kerry Media. With the
disclosure, announced yesterday by the Hong Kong stock
exchange, Franklin Resources emerged as the main buyer of a
block of SCMP shares released into the market last week by
Malayan United Industries (MUI). (TCR-AP 16-Apr-1998) Since
January, MUI has reduced its stake from 23.29 per cent to
8.14 per cent.

Franklin Resources held an 11.93 per cent stake in
Peregrine Investments Holdings, which is in the process of
liquidation, and an estimated 8 per cent stake in South Sea
Development, whose share price has plummeted to 19.6 cents
from $1.23 in September.
(South China Morning Post 21-Apr-1998)


PISCES GROUP: Subsidiaries Placed Under Judicial Management
-----------------------------------------------------------
SEVEN debt-laden companies in the privately held Pisces
group have been placed under interim judicial management
after the discount retailer's diversification into the
Chinese property market turned sour. The group had traded
profitably until three years ago when its founder and
driving force, Mr Ang Chin Thian, fell sick and its
fortunes took a turn for the worse. His inexperienced
brothers took over the helm and the profitable businesses
"became woefully mismanaged", the group claimed in its
court petition seeking judicial management.

The seven companies, now unable to pay their debts, are
ultimate holding company BestGrowth Holdings, its
intermediate holding company for the retail and wholesale
trading business Pisces Emporium Group, and the latter's
five subsidiaries.

The five are PMart International, Pisces Chain Store,
Pisces Garments Departmental Store, Cheap & Good Trading
and Boonsiri. Companies in the trading division had made
loans of $12 million to BestGrowth. BestGrowth faces
demands for repayments of about $26 million from various
creditors, the biggest of whom are Transpac Capital, DBS
Bank, OCBC Bank and Banque Internationale A Luxembourge.    
The other six have been presented with demands for about $4
million. Although the firms are unable to pay their debts,
all but one have more assets than liabilities. PMart has
net liabilities of $335,391.

BestGrowth suffered a $1.96 million loss for the year ended
September 1997. The Pisces Emporium Group and its
subsidiaries' losses could amount to about $1.7 million for
the six months to September 1997.

In April 1996, Mr Ang Chin Thian ended family control of
the group and brought in businessman Chen Mong Tse to
oversee operations. Mr Chen also took a stake in the group.    
Shook Lin and Bok senior counsel Sarjit Singh Gill
confirmed that applications for interim judicial management
for the seven were granted by the High Court yesterday.

Arthur Andersen has been appointed judicial manager for
BestGrowth and Ernst & Young for the six other companies.   
Two companies -- one Chinese and the other Australian --
are keen to take a stake in Bestgrowth.
(The Straits Times 21-Apr-1998)


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

FINANCIERA MANILA: SEC Dismisses Debt Relief Plea
-------------------------------------------------
The Securities and Exchange Commission (SEC) has dismissed
the petition for debt relief filed by Binondo-based
financing firm Financiera Manila, Inc. In an order issued
last Friday, the SEC said it decided to dismiss the firm's
petition as it failed to comply with the requirements
imposed by the SEC in connection with its petition.

"We find the petitioners' petition for rehabilitation and
declaration in a state of suspension of payments primarily
flawed not only in form, but likewise, in substance
emanating from petitioners' lack of satisfactory and
positive compliance" to an earlier SEC directive
instructing the firm to submit detailed information about
its finances. The SEC also recently revoked the license of
the cash-strapped firm to operate as a financing company
after it found the firm has violated various securities
regulations. The SEC found the company has violated
provisions of the Financing Company Act, the Corporation
Code as well as the Revised Securities Act.

Financiera is one of the firms seeking debt relief from its
creditors for loans amounting to 1.335 billion Philippine
pesos (PhP).
(BusinessWorld 21-Apr-1998)


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

CSA HOLDINGS: Announces 56% Drop in Profit
------------------------------------------
CSA Holdings reported a 56 per cent drop in 1997 net        
earnings to $6.4 million -- just over half of analysts'        
consensus forecast for the computer company. Indeed, only
if extraordinary gains of $6.02 million were included --
for a bottomline profit of $12.6 million (still down 15.6
per cent on the previous year) -- did it come anywhere near
analysts' average forecast of $12 million net earnings for
the year. Turnover for the group was up 3.3 per cent at
$459.3 million, but this moderate increase in sales revenue
yielded sharply lower performance ratios, with profit as a
percentage of sales halved to 1.5 per cent, and return on
shareholders' equity falling to 6.5 per cent from 17.6 per
cent previously.
(Singapore BusinessTimes 21-Apr-1998)


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

BANGKOK BANK: Provisions Pull Down Profit 98.5%
-----------------------------------------------
Bangkok Bank, Thailand's largest commercial bank, says
conservative provisioning has pulled first-quarter net
profit down 98.5 per cent from a year earlier. Unaudited
net profit after provisions was 74.28 million baht (about
HK$14.53 million) against five billion baht in January to
March last year. The slump was largely caused by lower
interest income and conservative provisioning in line with
new government rules designed to bring the Thai banking
sector up to international standards in three years, it
said. Operating profit was 8.4 billion baht. Provisions for
possible loan losses at the end of the first quarter were
7.7 billion baht.

"The results also show that the bank intends to continue to
take a prudent approach to provisioning," the bank said.

The central Bank of Thailand last month announced sweeping
changes to provisioning standards and loan definitions to
prevent a repeat of last year's near collapse of the
financial sector. Bangkok Bank said despite the massive
profit fall its fundamentals were sound.
(South China Morning Post 21-Apr-1998)


TELECOMASIA: Seeks Increase in Foreign Ownership
------------------------------------------------
In March 1998, TelecomAsia announced it will issue 777
million new shares to boost its capital to 30 billion baht,
from 22.23 billion baht currently. Last week, TelecomAsia's
president Ajva Taulananda said the company will raise its
foreign ownership above the current 49% to find a strategic
partner that will help bring TelecomAsia out of financial
trouble. TelecomAsia has seen its foreign debt surging
after the Thai government scrapped a pegged exchange-rate
system that traded within a band in July last year in a
move to bolster Thailand's sagging exports. Merrill Lynch &
Co. estimated the company's debt to be 7.7 times its equity
in 1997, when TelecomAsia reported a net loss of 26.63
billion baht, compared with a net loss of 3.44 billion baht
in 1996.

Its financial problem has prompted TelecomAsia to seek a
delay in loan repayments in 1998 and 1999, senior officials
at the company said previously. TelecomAsia has around $1.1
billion in loans and supplier credit, with a repayment
period spread over the next 10 years. In 1998 alone, the
company is due to repay $80 million worth of loans, said
Kitti Keratithamkul, vice president for investor relations.
The company has been in negotiations with creditors to
delay the principles payment by a year or two, Kitti said.

Warnock said Bell Atlantic still awaits details on the
terms and structure of the capital-increase plan before
making any decision concerning its stake in TelecomAsia.
(Dow Jones Newswires  21-Apr-1998)


WONGPAITOON GROUP: To Borrow $100 Million from Daiwa
----------------------------------------------------
Thailand's Wongpaitoon Group PCL (H.WPG) will sign later in
the day a deal to borrow $100 million from Daiwa Securities
America Inc. and repay the debt using its future export
earnings, a statement issued by the company said Tuesday.     
The statement, obtained by Dow Jones Newswires prior to its
expected release later Tuesday, described the deal as the
first of its kind in Thailand and the second in Southeast
Asia.

The agreement calls for Daiwa Securities to lend
Wongpaitoon $100 million now, and be directly repaid by
Wongpaitoon's future export earnings over the next five
years, in a transaction known as securitization.

"It is a good opportunity to introduce a new way of
financing" amid the current economic turmoil, which has
left many Thai companies paralyzed in a severe cash crunch,
the statement said.

Wongpaitoon, a shoe manufacturer is licensed to produce and
export shoes under the Reebok brand. The company produces
15% of all Reebok shoes, 95% of which are made in Thailand.
With its association with Reebok, one of the world's most
popular sports shoes, Wongpaitoon has confirmed export
orders six months in advance, the company noted.
(Dow Jones Newswires  21-Apr-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.

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