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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, April 24, 1998, Vol. 1, No. 47

                    Headlines


C H I N A   &   H O N G   K O N G

BILLION INTERNATIONAL: Revised Date for Rights Issue
C.P. POKPHAND: Discussions with Creditors
CHINA SHIPPING DEV: 1997 Results Announcement
MANSION HOLDINGS: Share Disposal by Mr. Yip


I N D O N E S I A

PT TELKOM: Partners Forced to Restructure Loans


K O R E A

KIA MOTORS: Delegates Vote to Return to Assembly Line
KIA MOTORS: Ford May Boost Capital
KIA MOTORS: Prosecutors Investigate Bribery Allegations
SAMSUNG HEAVY: Visit by Volvo Chairman


M A L A Y S I A
SCK GROUP: Receiver to Defend Winding-up Petition
SIME BANK: Shares Sale to Phileo Allied Bhd


P H I L I P P I N E S

NATIONAL STEEL: Creditors Grant Moratorium


S I N G A P O R E

FOWSENG HOLDINGS: May Sell Omni Shares to Reduce Debt


T H A I L A N D

THAI PETROCHEMICAL: Posts Largest Ever Annual Loss        



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

C.P. POKPHAND: Discussions with Creditors
-----------------------------------------
The directors (the `Directors') of C.P. Pokphand Co. Ltd.
(the `Company') refer to the Company's press announcement
of 2nd April, 1998. In that announcement it was stated that
certain preliminary confidential discussions had been held
between representatives of the Company and the existing
banks and other financial institutions which are currently
lenders to the Company (the `Lenders'). The Directors now
refer to the floating rate notes due 2000 in the principal
amount of US$100 million (HK$780,000,000) which were issued
by the Company on 21st April, 1995 (the `2000 Notes').

The Company has received redemption notices from all of the
holders of the 2000 Notes pursuant to the terms thereof
requesting the Company to redeem the 2000 Notes on 23rd
April, 1998. The aggregate redemption monies required is
approximately US$92.8 million (HK$723,840,000) plus
interest of approximately US$3.5 million (HK$27,300,000).
The Company has today despatched notices to holders of the
2000 Notes convening a meeting of the noteholders on 29th
May, 1998 in Hong Kong. The purpose of the meeting is to
request the noteholders to revoke all redemption notices
given in respect of the 2000 Notes.

The Directors have decided to make this request in view of
the continuing review of the current financial position,
including the present working capital requirements and cash
flow position, of the Company and the ongoing confidential
discussions which the Company will be having with the
Lenders. The Company proposes to keep current all payments
of interest in respect of the 2000 Notes including the
payment of approximately US$3.5 million (HK$27,300,000) due
on 23rd April, 1998. The Company also intends to propose at
the meeting that the holders of the 2000 Notes resolve that
for so long as the bank creditors of the Company agree
generally to refrain from taking legal action against the
Company, and subject to interest payments under the 2000
Notes being kept current, no proceedings or steps of any
kind will be instituted by any such noteholders against the
Company or its assets for, or with the view to, enforcing
payment by the Company of amounts due in and under or in
respect of the 2000 Notes.

If the holders of the 2000 Notes do not agree to the
Company's proposal, then an event of default will arise
under the terms of the 2000 Notes and the holders thereof
will, unless otherwise agreed with the Company, be entitled
to take legal action against the Company in relation
thereto.

The Company has not received any demands for payment in
respect of the 1999 Notes or the 2001 Notes. However, the
Company has today issued notices to the holders of the 1999
Notes and the 2001 Notes convening separate meetings of the
holders of those Notes on 29th May, 1998 in Hong Kong. At
those meetings the Company proposes to put to the relevant
noteholders resolutions waiving any event of default under
those Notes and agreeing to refrain from taking any legal
action in relation thereto, such resolution to be in the
same terms as those referred to above in relation to the
2000 Notes. The Company also proposes that all payments of
interest in respect of the 1999 Notes and the 2001 Notes
will be kept current in accordance with the terms of those
Notes.

If the holders of the 1999 Notes and/or the 2001 Notes do
not agree to the Company's proposal, then an event of
default will arise under the terms of those Notes (as the
case may be) and the holders thereof will, unless otherwise
agreed with the Company, be entitled to take legal action
against the Company (or, in the case of the 2001 Notes,
C.P. Pokphand (Finance) Co. Ltd.) in relation thereto.

By Order of the Board Sumet
      Jiaravanon
      Director



Hong Kong, 21st April, 1998

(SEHK 23-Apr-1998)


CHINA SHIPPING DEV: 1997 Results Announcement
---------------------------------------------
For the period January 1, 1997 to December 31, 1997, China
Shipping Development Company Ltd. reports a net loss of
RMB74,587,000 on turnover of RMB3,252,736,000. This
compares to a net loss of RMB157,465,000 on turnover of
RMB3,219,160,000 for the corresponding 1996 period. The
exceptional item for 1996 and 1997 represented profit on
disposal of vessels during the respective period.
(SEHK 22-Apr-1998)


MANSION HOLDINGS: Share Disposal by Mr. Yip
-------------------------------------------
The Board has been informed by Mr. Jason Yip Chi Fun ("Mr.
Yip"), that on 21st April, 1998, the shareholding of Mr.
Yip and Silver Lotus Ventures Ltd. ("Silver Lotus") in the
Company was further reduced by 1,500,000 shares (the
"Disposed Shares"), representing approximately 0.3 per
cent. of the issued share capital of the Company as a
result of share disposal (the "Disposal") by Mr. Yip and
Silver Lotus on the market. Silver Lotus is owned by a
discretionary trust the beneficiaries of which include Mr.
Yip, Ms. Mak Wai Fong, a former director of the Company and
sister-in-law of Mr. Yip, and their families. The Disposed
Shares were held by Mr. Yip.

Immediately after the Disposal, Mr. Yip and Silver Lotus
hold a total of 59,408,200 shares (the "Remaining Shares")
in the Company, representing approximately 11.80 per cent.
of the issued share capital of the Company. Mr. Yip has
informed the Company that of the Remaining Shares, only
9,253,800 shares (representing approximately 1.84 per cent.
of the issued share capital of the Company) were pledged as
security to the lenders (the "Lenders") of Mr. Yip and
Silver Lotus and he is not aware whether the Lenders will
foreclose and dispose the said shares. Mr. Yip has
undertaken to inform the Company as and when he is informed
by the Lenders that further shares in the Company have been
foreclosed and disposed. The Company will then inform the
public of such foreclosure and disposal.

The Board however wishes to state that the Company is still
undergoing a restructuring as proposed in the Company's
announcement dated 31st March, 1998.

By Order of the Board
Lee Sing Kau
Company Secretary

Hong Kong, 21st April, 1998

(SEHK 22-Apr-1998)


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

PT TELKOM: Partners Forced to Restructure Loans
-----------------------------------------------
PT Telkom's partners have been forced to restructure loans
totalling $US3 billion. According to the spokesman for the
five companies, the restructuring of loans, most of which
were overseas loans, had to be conducted to adjust them to
the market demand. "In the present economic condition, we
have to review the funding strategies, including the human
resources," he said here yesterday. The five operation
cooperation partners of PT Telkom are PT Pramindo Ikat
Nusantara(Sumatera), Ariawest (West Java), MGTI Central
Java and Jogyakarta), Cable & Wireless Mitratel
(Kalimantan) and Bukaka Singtel International (Eastern  
Indonesia). The companies have invested $US1.41 billion
since the project was first implemented two years ago.
(Asia Pulse 23-Apr-1998)


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

KIA MOTORS: Delegates Vote to Return to Assembly Line
-----------------------------------------------------
The trade union of the troubled Kia Motors Corp. has
decided to resume full operation at production lines at
Kia's Sohari and Asan plants, starting from Thursday's
night shift. The decision came during an extraordinary
meeting of union delegates Thursday. Workers would work day
and night shifts, which would span eight hours each. In
protest against the court appointment of a sole outside  
manager to administer receivership, the union resorted to a  
general strike from April 15, but allowed partial operation
of the factories from Tuesday.
(Asia Pulse 23-Apr-1998)


KIA MOTORS: Ford May Boost Capital
----------------------------------
Ford Motor of the United States would seriously consider
bolstering the capital of Kia Motors, Kia officials said
Thursday, quoting Paul Drenko, a Ford executive in charge
of Asia-Pacific operations. The American auto giant is the
largest shareholder of Kia Motors, now under court
protection. Drenko met with new Kia executives - Yoo Jong-
yuel, Kia Group chairman and Song Byung-nam, Kia Motors
president, and discussed ways to strengthen bilateral ties.

The Ford executive suggested to Yoo, the court-appointed  
manager of the bankrupt automaker, that they do their best
to step up cooperation. Details on a further alliance would
be ironed out in working-level negotiations, Kia sources
said. Drenko would also meet executives of Samsung Motor
Inc. on Friday to discuss a strategic alliance. Ford is now
negotiating with Samsung Motor over equity investment and
sales cooperation.
(Asia Pulse 23-Apr-1998)


KIA MOTORS: Prosecutors Investigate Bribery Allegations
-------------------------------------------------------
Prosecutors yesterday began digging further into the
allegation that former Kia Group chairman Kim Sun-hong had
bribed government officials and politicians through the use
of illegally amassed slush funds. To secure evidence,
investigators armed with court warrants examined the bank
accounts and other financial records of Kim and his
relatives, prosecution officials said. Kim is suspected of
having bribed government officials and politicians in an
effort to prevent Kia Motors Corp. from being placed under
court receivership, the officials said.

The Kia probe is related with efforts to determine the
policy failures and malpractices that led up to the
nation's foreign exchange crisis. Prosecutors have
questioned a number of former and present economic
officials, including former Finance-Economy Minister Lim
Chang-yuel. Lim was quoted as telling prosecutors that when
he took office last November, he was not told by then
President Kim Young-sam whether the IMF aid was formally
decided by the government. He also claimed that his
predecessor Kang Kyung-shik failed to hand over any
specific information regarding the IMF deal.
(Korea Herald 24-Apr-1998)


SAMSUNG HEAVY: Visit by Volvo Chairman
--------------------------------------
Volvo chairman Leif Johansson is set to arrive in Seoul on
April 30 to pay a call on the Samsung Heavy Industry Co. to
confer over matters related to taking over the Korean
company's construction equipment division. He is expected
to finalise issues related to the Swedish motor firm's
takeover bid for the Korean firm's construction equipment
division, which produces excavators, loaders, cranes and
concrete pump cars, before he leaves the country on May 2.
He is also scheduled to call on high-ranking government  
officials while here. The Swedish firm is bidding to take
over a 90 percent interest in the construction equipment
production division, while Samsung would retain a 10
percent equity share of the operation.
(Asia Pulse 23-Apr-1998)


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

SCK GROUP: Receiver to Defend Winding-up Petition
-------------------------------------------------
SCK Group Bhd's receiver said yesterday it would be      
defending a winding-up petition filed by Multi-Purpose      
Bank Bhd. SCK Group, an interior renovation firm, had stood
as guarantor for the debt of three of its subsidiaries. The
units owed the bank over one million Malaysian ringgit
(S$422,800), Bernama news agency reported on Tuesday.

Arthur Andersen & Co has been appointed receiver of SCK.
Lim Tian Huat and Abdul Samad Haji Alias, representing
Arthur Andersen as receivers of SCK, issued a statement
saying they would be "defending" the winding-up petitions.  
SCK was put into receivership following a boardroom fight
involving four shareholders who seek to unseat the three-
member board.

The receivers also said they have been advised that the
four SCK shareholders have filed a court application to
stay the receivers and managers' powers to reconvene a
postponed annual general meeting.
(Singapore BusinessTimes 23-Apr-1998)


SIME BANK: Shares Sale to Phileo Allied Bhd
-------------------------------------------
Rashid Hussain Bhd said its banking unit RHB Bank will sell
one billion Malaysian ringgit (S$422.8 million) in
preferred shares to Phileo Allied Bhd to finance its
purchase of ailing Sime Bank Bhd.

"This subscription agreement forms part of the funding for
the merger and recapitalisation" of Sime Bank, Rashid
Hussain said in a statement. More details of the
transaction will be announced later, the company said. It
didn't elaborate. The announcement, which quashes
speculation that the proposed purchase might collapse,
follows weeks of negotiations and saves Sime Bank from
possible closure. The plan to rescue Sime was first
announced on March 3 by Finance Minister Anwar Ibrahim, who
has advocated the plan.

The preferred shares come with an option to convert into
shares of RHB Capital Bhd, the parent of RHB Bank, at
RM3.20 each in the first five years, and at RM3.30 each in
the next five years. RHB Capital shares last traded at
RM3.20 on March 3, when they were halted for the
announcement.
(Singapore BusinessTimes 23-Apr-1998)


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

NATIONAL STEEL: Creditors Grant Moratorium
------------------------------------------
Creditors of National Steel Corp. have agreed to grant the
troubled steel firm a 60-day moratorium in the payment of
its maturing obligations. Westmont Bank president Edgardo
Espiritu said the formal agreement on the 60-day debt
moratorium, was scheduled for signing late yesterday
afternoon between officials of NSC and the banks. Espiritu,
NSC's former chief executive officer, said the creditor
banks which include Westmont Bank and NSC will try to work
out a restructuring agreement within the 60-day period.

He said, however, that Malaysia's Renong Berhad group will
have to raise additional equity in NSC before creditor
banks will agree to restructure over P10 billion in NSC
loans and provide P2 billion in fresh financing to the
steel firm.

Espiritu said NSC will also try to negotiate for a P2
billion loan from the creditor banks to replenish its
working capital. He said NSC will use the money to open
needed letters of credit.
(The Manila Times 23-Apr-1998)


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

FOWSENG HOLDINGS: May Sell Omni Shares to Reduce Debt
-----------------------------------------------------
Fowseng Holdings Pte, a major shareholder of Omni      
Industries Ltd, said it may sell more shares of the      
Singapore-based maker of injection moulded plastic parts to
reduce debt. Fowseng, a furniture manufacturer and
retailer, has sold 501,000 shares of Omni since April 17,
reducing its stake to 5.26 per cent from 5.4 per cent, said
documents filed with the Stock Exchange of Singapore. It
sold them at about 51 cents a share and may sell more.

"We're not selling at any price," said Burso Tan, 28, an
executive director of Fowseng, who declined to say how many
shares Fowseng may eventually sell. "We're prepared to take
our time."

The family-run furniture company, which holds 18.6 million
Omni shares, is raising money to reduce debt and interest
costs related to its expansion of Ethan Allen Interiors Inc
in Singapore. He wouldn't say how much debt the company
has.

Fowseng owns the Singapore franchise for Ethan Allen, a US-
based maker of home furnishings, and has just opened a
store in Great World City.
(Singapore BusinessTimes 23-Apr-1998)


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

THAI PETROCHEMICAL: Posts Largest Ever Annual Loss        
--------------------------------------------------
Thailand's largest integrated petrochemical company, Thai
Petrochemical Industry Plc (TPI), on Thursday reported the
largest annual loss in Thai corporate history at 69.26
billion baht ($1.78 billion). The company's main hope of
avoiding a painful liquidation process now lies in
acceptance of a restructuring plan that should be released
to the firm's 120 international creditors within this
quarter, sources close to the company told Reuters.

Consolidated figures released to the Thai stock exchange
showed the company's balance sheet has been devastated by
huge unhedged foreign denominated liabilities and the
baht's depreciation since its flotation in July last year.
TPI's year end accounts included 66.81 billion baht of
foreign exchange Losses of which the company realised 3.44
billion during 1997. Total liabilities calculated in baht
at an end December exchange rate of about 46.60 per dollar
amounted to 118.19 billion ($2.53 billion), but TPI has
not serviced its debts for some months, executives said.

Chase Manhattan Bank was last August appointed as the
company's advisor. Merrill Lynch is heading efforts to
advise TPI's listed subsidiary TPI Polene Plc, which
earlier this month posted a 26.09 billion baht 1997 loss.  
Several foreign parties, mostly oil firms such as Mobil
that have downstream petrochemical operations, have
expressed an interest in parts of TPI's operations. But
little can move forward until a restructuring plan is  
finalised and approved, executives said.

Debt repayments will also not resume before the
restructuring plan was accepted. The company's de facto
debt moratorium has enabled it to retain a positive
cashflow and keep operating, sources close to the company
said. Negotiations were now said to hinge on the current
TPI hierarchy, which includes several members of the
controlling Leophairatana family, and their willingness to
sell or lose management control of parts of the group, the
source said.

They said alarm bells should have sounded in early 1995
when the group lost millions of dollars on a botched
derivatives transaction in a disputed settlement with Union
Bank of Switzerland in Singapore. They also pointed to
difficulties in breaking up the group for a sale of
its component parts, particularly cement subsidiary TPI
Polene, which also has a polyethylene division that would
have fitted better as a unit of the parent company.
(Reuters 23-Apr-1998)


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