---

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      

      Monday, June 15, 1998, Vol. 1, No. 80

                    Headlines


C H I N A   &   H O N G   K O N G

AIF ALLWAY INT'L FORWARDING LIMITED: Winding-up Notice
AVANCA INTERNATIONAL: Notice of Voluntary Liquidation
BUILDCON ENGINEERING: Winding-up Order
CA PACIFIC SECURITIES: CA Clients Reject Payout Deal
CA PACIFIC SECURITIES: High Court Grants Wind-up Order

CITIC PACIFIC: Debt puts Citic Pacific on Downgrade Review
CORIN INTERNATIONAL (HK) LIMITED: Winding-up Notice
DATA SYSTEMS (HK) LTD: Companies Winding-up Proceedings
DOUBLE CHAINS LIMITED: Winding-up Notice
EDA GROUP: Notice of Meetings of Members and Creditors

FAIR KING: Notice for Creditors
FAR EAST WAGER CONSTRUCTION LIMITED: Winding-up Notice
GET GAY DEVELOPMENT LIMITED: Winding-up Notice
HAI LI DESIGN LIMITED: Winding-up Notice
HAPPYEAR TRADING LIMITED: Meeting of creditors

KELMORE INDUSTRIAL LIMITED: Winding-up Notice
KIT CHEUNG: Notice of Members' and Creditors' Meetings
LTH INTERNATIONAL (HK) LIMITED: Winding-up Notice
LAFIA LIMITED: Notice for Creditors
LEED & WOOD COMPANY LIMITED: Winding-up Notice

LUEN CHEONG TAI INDUSTRIAL LIMITED: Winding-up Notice
MING FUNG GROUP: Liquidators Give Estimate on Shortfall
N.E. CORPORATION LIMITED: Winding-up Notice
PEREGRINE FIXED INCOME: Liquidator Warns of Low Repayments
SUN FAT LAUNDRY LIMITED: Winding-up Notice

SUN KEE GARMENT FACTORY LIMITED: Winding-up Notice
UMF LEASING LIMITED: Notice for Creditors
VANCA INTERNATIONAL LTD : In Members' Voluntary Liquidation
VENPOWER INDUSTRIES LIMITED: Winding-up Notice
WAN HIN AND COMPANY LIMITED: Winding-up Notice

WAYSUNTONE COMMUNICATION: Notice of Creditors' Meeting
VASTLINK INDUSTRIAL LIMITED: Winding-up Notice
WELOCK DEVELOPMENT LIMITED: Winding-up Notice
ZERMAT INTERNATIONAL LIMITED: Winding-up Notice


J A P A N  

DAI-ICHI LIFE: Japan Insurers' Assets Shrink $171b
ISETAN: Reports 51% Drop in Earnings
JAPAN NATIONAL OIL: MITI Unveils Restructuring Plan
MITSUI LIFE: Japan Insurers' Assets Shrink $171b
NIPPON CREDIT BANK: Bank Stock Drops Spurs Fears

NIPPON LIFE: Japan Insurers' Assets Shrink $171b
NISSAN MOTOR: S&P Affirms Ratings; Off CreditWatch        
TAKASHIMA CREDIT: To Transfer Business to Shiga Bank
YASUDA: Japan Insurers' Assets Shrink $171b


K O R E A

DAEHAN TEXTILE COMPANY: Daehan Shares Trading Suspended
DAEKIL TRADING: Application for Court Receivership
DONG AH: Alleged Embezzlement May De-rail Libyan Project
HANGIL INTEGRATED: Financial Firm to Close Next Month
HYOSUNG GROUP: To Merge 4 Affiliates Into Single Company  

JINRO COORS: Coors to Take Over JV Partner
KOREA TELECOM: Sale of State Enterprises to Foreigners
KOREA TOBACCO: Sale of State Enterprises to Foreigners
NAMHAE CHEM CORP: Sale of State Enterprises to Foreigners
NATIONAL TEXTBOOK: Sale of State Enterprises to Foreigners

NEW MAX COMPANY: New Max Shares Trading Suspended
POHANG IRON: Sale of State Enterprises to Foreigners
WOO SUNG INSTALLMENT FINANCE: Submits Business Cancellation


M A L A Y S I A

BAIK MAJU SDN BHD: Winding-up Petition
ETS AGENCY SDN BHD: Winding-up Petition
EKSPRES TAIPING-JOHOR BAHARU SDN BHD: Winding-up Petition
FUSU PLASTIC INDUSTRIES SDN BHD: Winding-up Petition
HASIL LUAS SDN BHD: Winding-up Petition

PENGKALEN CAPITAL BHD: Scheme of Arrangement
SCK GROUP: High Court Dismisses Bank's Petition
SUNDROP FRUIT JUICES BHD: Winding-up Petition
UTUSAN MELAYU (M) BHD: Winding-up Petition Withdrawn


P H I L I P P I N E S

DAGUPAN CITY RURAL BANK: Takeover by PDIC
VICTORIAS MILLING: Creditors Seek Probe on Auditor


T H A I L A N D

FINANCE ONE: Insider Trading Charges Pending
HANTEX PLC: SET Places Halt on Trading
NORTH STAR PUBLIC COMPANY LIMITED: Faces Possible Delisting
UNION ASIA FINANCE: Insider Trading Charges Pending


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

AIF ALLWAY INT'L FORWARDING LIMITED: Winding-up Notice
------------------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of AIF Allway International Forwarding Limited.

Date of petition: March 25
Date of order: June 3


AVANCA INTERNATIONAL: Notice of Voluntary Liquidation
-----------------------------------------------------
The SCMP of June 12 shows a notice which says that the
creditors of Avanca International Limited which is being
voluntarily wound up, are required to send in their names,
addresses and particulars of their debts or claims to the
liquidators of the said company on or before July 3.


BUILDCON ENGINEERING: Winding-up Order
--------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Buildcon Engineering & Supplies Limited.

Date of petition: March 20
Date of order: June 3


CA PACIFIC SECURITIES: CA Clients Reject Payout Deal
----------------------------------------------------
The SCMP of June 12 says that former clients of CA Pacific,
recipients of the largest compensation package for a
collapsed brokerage in Hong Kong, gathered on June 11
alongside former clients of collapsed Forluxe Securities
outside the stock exchange. They are dissatisfied with the
announcement of a $412 million compensation package, under
which cash clients or margin clients who did not use their
credit lines after June 1 last year would each receive up
to $150,000. Roughly 70% of the 5,212 claimants would
receive full compensation.

Following the announcement, about 30 former CA Pacific
clients met with stock exchange executives to voice their
disapproval. Many were margin clients who had used their
credit facilities or clients who lost more than $150,000.
Their representative said that former CA Pacific clients
would unite with former clients of Forluxe and those of
Ming Fung Group's Chark Fung Securities to demand full
compensation for all investors.


CA PACIFIC SECURITIES: High Court Grants Wind-up Order
------------------------------------------------------
The High Court of the First Instance has granted the
Official Receiver a Regulating Order for both CA Pacific
Securities and CA Pacific Finance with respect to the
winding-up of both companies.

Coopers and Lybrand are the current provisional
liquidators.


CITIC PACIFIC: Debt puts Citic Pacific on Downgrade Review
----------------------------------------------------------
According to the SCMP of June 12, Moody's Investors Service
has placed PRC-backed Citic Pacific on review for a
possible downgrade. This comes days after the agency
announced it was reviewing the rating of Citic Pacific's
ultimate parent, Citic Beijing and six other PRC controlled
investment firms and is said by the agency as reflecting
concerns over Citic Pacific's significant debt levels in an
unstable and deteriorating operating environment.

Despite the downgrade, Citic Pacific's shares rose 60 cents
to $14.2, following news Citic Pacific chairman Larry Yung
Chi-kin had been buying back stock.

The company's managing director said the downgrade was not
surprising but rejected it citing the earnings momentum the
company enjoys from infrastructure investments. This would
account for 70% of the company's recurrent income, of which
45% would come from mainland projects. He also said the
company's debt-to-asset ratio of more than 30% was  
comfortable.

Analysts, however, said that the ratings agency's concerns
were not groundless, citing high interbank rates, the
decline in tourist arrivals and property correction. An
analyst also said the company's net gearing could reach
more than 50% and said he might readjust his original
forecasts of Citic earnings to less than $4.8 billion,
against last year's $7.37 billion.


CORIN INTERNATIONAL (HK) LIMITED: Winding-up Notice
---------------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
appointment of liquidators for winding up of Corin
International (HK) Limited.


DATA SYSTEMS (HK) LTD: Companies Winding-up Proceedings
-------------------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Data Systems (HK) Ltd. Date of petition: May
12; Date of order: June 3, 1998.


DOUBLE CHAINS LIMITED: Winding-up Notice
----------------------------------------
The SCMP of June 12 shows a notice saying that a petition
for the winding up of Double Chains Limited was presented
to the High Court on April 15 by the Commissioner of Inland
Revenue, and that the petition was directed to be heard
before the court at 9:30 am on June 24.


EDA GROUP: Notice of Meetings of Members and Creditors
------------------------------------------------------
The Hong Kong Standard of June 12 shows a notice a meeting
for the members and creditors of EDA Group of Companies to
be held at 23/F., Sunning Plaza, 10 Hysan Avenue, Causeway
Bay, Hong Kong on July 17 at 10:30 am for Emery Investment
Company Limited (in liquidation) and 11:00 am for Soundril
Limited (in liquidation).


FAIR KING: Notice for Creditors
-------------------------------
The SCMP of June 12 shows a notice asking creditors of Fair
King Properties Limited, which is being voluntarily wound
up, to send in their names, addresses and particulars of
their debts or claims to the liquidators of the said
company on or before July 3.


FAR EAST WAGER CONSTRUCTION LIMITED: Winding-up Notice
------------------------------------------------------
A notice on the Hong Kong Standard of June 12 says that a
petition for the winding up of Far East Wager Construction
Limited was made to the High Court on May 25 by German
Kitchen (China) Limited, and that the said petition was
directed to be heard before the court at 11:00 am on July
8.


GET GAY DEVELOPMENT LIMITED: Winding-up Notice
----------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Get Gay Development Limited.

Date of petition: January 21, 1998
Date of order: June 3, 1998


HAI LI DESIGN LIMITED: Winding-up Notice
----------------------------------------
The Hong Kong Standard of June 13 shows a notice about the
winding up of Hai Li Design Limited.

Date of petition: March 25
Date of order: June 3


HAPPYEAR TRADING LIMITED: Meeting of creditors
----------------------------------------------
The Hong Kong Standard of June 12 shows a notice that a
meeting of creditors of Happyear Trading Limited will be
held at 2:00 pm on 23 June.


KELMORE INDUSTRIAL LIMITED: Winding-up Notice
---------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Kelmore Industrial Limited.

Date of petition: March 24
Date of order: June 3


KIT CHEUNG: Notice of Members' and Creditors' Meetings
------------------------------------------------------
Notice was posted for a meeting of the members and
creditors of Kit Cheung Realty Development Company Limited
(in creditors` voluntary liquidation) on June 8, 98, at
12:00 noon, 3rd Floor, Chow Sang Sang Building, Nos., 229,
Nathan Road, Kowloon.


LTH INTERNATIONAL (HK) LIMITED: Winding-up Notice
-------------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Lth International (HK) Limited.

Date of petition: March 25, 1998
Date of order: June 3, 1998


LAFIA LIMITED: Notice for Creditors
-----------------------------------
The SCMP of June 12 shows a notice asking creditors of
Lafia Limited, which is being voluntarily wound up, to send
in their names, addresses and particulars of their debts or
claims to the liquidators of the said company on or before
July 12.


LEED & WOOD COMPANY LIMITED: Winding-up Notice
----------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Leed & Wood Company Limited.

Date of petition: March 26
Date of order: June 3


LUEN CHEONG TAI INDUSTRIAL LIMITED: Winding-up Notice
-----------------------------------------------------
A notice on the Hong Kong Standard of June 12 says that a
petition for Luen Cheong Tai Industrial Limited was
presented to the High Court on May 15 by Leung Yiu Sing,
and that the said petition was directed to be heard before
the court at 11:00 am on June 24.


MING FUNG GROUP: Liquidators Give Estimate on Shortfall
-------------------------------------------------------
According to the SCMP of June 12, provisional liquidators
of the Ming Fung Group, Peat Marwick, estimates the
companies suffer a $246 million shortfall.

Preliminary investigations show that the group faces total
investors' claims of $328 million, of which $290 million
represents claims to shares. The stock held by the group on
behalf of investors was estimated to be just $44 million,
leaving a shortfall of $246 million. The group also owes
$20 million to banks, which hold cash of about $25 million
as well as other security.

The provisional liquidators are investigating the reasons
for the group's collapse, and are seeking purchasers to
take over part or all of the firm's businesses.


N.E. CORPORATION LIMITED: Winding-up Notice
-------------------------------------------
A notice appears on the Hong Kong Standard of June 12 about
the winding up of N.E. Corporation Limited.

Date of petition: March 31, 1998
Date of order: June 3, 1998


PEREGRINE FIXED INCOME: Liquidator Warns of Low Repayments
----------------------------------------------------------
As reported on the SCMP of June 12, liquidator Price
Waterhouse said that Peregrine Fixed Income, the department
at the center of the collapse of Peregrine Investments
Holdings, accumulated debts of US$2.41 billion, barely 20%
of which was likely to be repaid to creditors. It was
responsible for the $265 million loan to Indonesian taxi
firm Steady Safe, which caused the group's demise. The
department was run by former Peregrine star banker Andre
Lee and contributed almost 40% of the group's profit. At
its peak PFI employed 200 people and touted itself as the
region's most active originator of Asian fixed income
products. In 1996 it made a pretax profit of $381.49
million.

Price Waterhouse yesterday valued PFI's bond and derivative
portfolio at about $2.07 billion, but said it had doubts
about being able to recover more than three-quarters of the
book. The most optimistic payout was 52%. An interim
payment was possible in the next 12 months.

The closing of derivative positions and other trades had so
far netted just $262.3 million. Only $491 million of
exposure to US and European corporates could be considered
good, with $1.57 of "bad-book" or doubtful assets. About 95
per cent of the portfolio was in US dollars. Exposure to
Indonesian entities totalled $1.09 billion, 52.4% of total
assets before provisions.

Price Waterhouse declined to give a specific value of the
bank's exposure to Steady Safe but said it made up the
majority of a $438 million asset category. It would take
several years to maximise any return from the Indonesian-
related assets.

Price Waterhouse said an independent expert had advised
liquidators that the complexity of PFI's positions meant
the portfolio could not be managed and should be sold off
as quickly as possible. The liquidators had identified
approximately 1,600 trading positions, involving about 300
counterparties. One strategy would be to inject assets into
a unit trust structure and allow creditors to sell out at
their convenience.

Liquidators had had no contact with Mr Lee since he left
the business on January 16.


SUN FAT LAUNDRY LIMITED: Winding-up Notice
------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Sun Fat Laundry Limited.

Date of petition: March 20, 1998
Date of order: June 3, 1998


SUN KEE GARMENT FACTORY LIMITED: Winding-up Notice
--------------------------------------------------
The SCMP of June 12 shows a notice saying that a petition
for the winding up of Sun Kee Garment Factory Limited was
presented to the High Court on May 20 by Yau Fook Hong
Company Limited, and that the petition was directed to be
heard before the court at 11:00 am on June 24.


UMF LEASING LIMITED: Notice for Creditors
-----------------------------------------
The SCMP of June 12 shows a notice asking liquidators of
UMF Leasing Limited, which is being voluntarily wound up,
to send in their names, addresses and particulars of their
debts or claims to the liquidators of the said company on
or before July 3.


VANCA INTERNATIONAL LTD : In Members' Voluntary Liquidation
-----------------------------------------------------------
The creditors of Vanca International Limited, which is
being voluntarily wound up, are required on or before 3
July, 98 to send their names, addresses and particulars of
their debts or claims to the liquidators, G W Hopkinson, M
G Bond.


VENPOWER INDUSTRIES LIMITED: Winding-up Notice
----------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Venpower Industries Limited.

Date of petition: March 6, 1998
Date of order: June 3, 1998


WAN HIN AND COMPANY LIMITED: Winding-up Notice
----------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Wan Hin and Company Limited, and that the
creditors' meeting will be held at 10:30 and
contributories' meeting will be held at 11:30 am on June
26.


WAYSUNTONE COMMUNICATION: Notice of Creditors' Meeting
------------------------------------------------------
A notice appears on the Hong Kong Standard of June 12
saying that the meeting for creditors of Waysuntone
Communication Limited will be held at Room 714, Concordia
Plaza, 1 Science Museum Road, Tsimshatsui East, Kowloon at
3:00 pm on June 25.


VASTLINK INDUSTRIAL LIMITED: Winding-up Notice
----------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Vastlink Industrial Limited.

Date of petition: March 23, 1998
Date of order: June 3, 1998


WELOCK DEVELOPMENT LIMITED: Winding-up Notice
---------------------------------------------
The SCMP of June 12 shows a notice saying that a petition
for the winding up of Welock Development Limited was
presented to the High Court on May 27 by Kenbase
Engineering Limited, and that the petition was directed to
be heard before the court at 9:30 am on June 24.


ZERMAT INTERNATIONAL LIMITED: Winding-up Notice
-----------------------------------------------
The Hong Kong Standard of June 12 shows a notice about the
winding up of Zermat International Limited.

Date of petition: March 20, 1998
Date of order: June 3, 1998


=========
J A P A N  
=========

DAI-ICHI LIFE: Japan Insurers' Assets Shrink $171b
--------------------------------------------------
The SCMP of June 10 says that Japan's eight biggest life
insurers lost 31 trillion yen or 3.4% of their 919 trillion
yen worth of individual insurance and pension fund assets
during the year to March. Customers withdrew most funds
from those companies believed to be in the worst shape.

Asahi, Dai-ichi, Meiji, Sumitomo and Yasuda, using US
disclosure standards for the first time, revealed they had
a combined non-performing debt of 1.7 trillion yen, more
than double the amount they previously admitted to.
The flow of money out of life insurers, especially those
that seem financially weak, was sparked by the collapse in
April last year of Nissan Mutual which said its liabilities
outstripped assets by 10%.

Analysts said some weaker companies might be pushed into
the arms of interested buyers. This year a subsidiary of
General Electric agreed to purchase the sales business of
Toho Mutual Life Insurance, while the American
International Group said it might buy Aoba Life Insurance,
the company that took over the policies of the failed
Nissan Mutual Life Insurance.


ISETAN: Reports 51% Drop in Earnings
------------------------------------
The Financial Times reports June 12 that Isetan Department
Store cites lower household spending for the 51% drop in
earnings last year. Net income fell from Y5.3bn to Y2.6bn
($18m) on sales down 4 per cent at Y591bn. Isetan also
suffered from Barney's, the US department store that filed
for bankruptcy in 1996. Unpaid loans from Barney's cost
about Y5bn last year, according to Goldman Sachs.


JAPAN NATIONAL OIL: MITI Unveils Restructuring Plan
---------------------------------------------------
Nihon Keizai Shinbum reports June 12 the Ministry of
International Trade and Industry on Thursday released a
management restructuring plan for its affiliated Japan
National Oil Corp., which is saddled with bad credits
totaling 1.4 trillion yen. MITI believes the corporation
should trim a target to double imports of its own supplies
of crude oil by early next century. Japan National Oil aims
to import 1.2 million barrels a day from its own fields - a
quarter of its total oil imports.

The restructuring plan says the target should be trimmed
because of the sluggish crude oil market and expanding
sources of oil imports. The plan would also reduce the
number of oil development projects the corporation invests
in to less than 10 a year from the current 12-13.

In fiscal 1996, the corporation extended 28.9 billion yen
in loans to the private sector, in addition to capital
participation of 22.2 billion yen. Priority should be
placed on capital participation over loans because the
former more clearly divides responsibilities between the
MITI-affiliated body and its private-sector partners, the
ministry says.


MITSUI LIFE: Japan Insurers' Assets Shrink $171b
------------------------------------------------
The SCMP of June 10 says that Japan's eight biggest life
insurers lost 31 trillion yen or 3.4% of their 919 trillion
yen worth of individual insurance and pension fund assets
during the year to March. Customers withdrew most funds
from those companies believed to be in the worst shape.

Sumitomo, Mitsui and Chiyoda also have "hidden" losses on
their real estate portfolios.

The flow of money out of life insurers, especially those
that seem financially weak, was sparked by the collapse in
April last year of Nissan Mutual which said its liabilities
outstripped assets by 10%.

Analysts said some weaker companies might be pushed into
the arms of interested buyers. This year a subsidiary of
General Electric agreed to purchase the sales business of
Toho Mutual Life Insurance, while the American
International Group said it might buy Aoba Life Insurance,
the company that took over the policies of the failed
Nissan Mutual Life Insurance.


NIPPON CREDIT BANK: Bank Stock Drops Spurs Fears
------------------------------------------------
According to the SCMP of June 12, traders and analysts said
that the Nippon Credit Bank was again subject to rumors
about its imminent demise.

This came amidst a new wave of panic swept through Japanese
banking stocks yesterday as speculation mounted over banks'
ability to roll over huge debts. Shares in the sector fell
an average of 3%, with Long Term Credit Bank of Japan,
Sumitomo Trust and Toyo Trust in the eye of the storm. Long
Term Credit Bank of Japan share price has fallen 21% in the
past week. Sumitomo lost 10% of its share price yesterday
and Toyo 8%.

Fears that these banks, with combined assets of more than
50 trillion yen, would not be able to roll over large debts
coming due soon were though to be behind the selling.
Officials at the banks denied this possibility.

Long Term Credit Bank of Japan announced plans of boosting
its profits.

Japanese banks struggle under sagging profits and an
estimated 77 trillion yen in bad and risky debt, much of it
the legacy of reckless lending during the "bubble economy"
of the late 1980s.

A Hong Kong Standard report quotes Taku Yamasaki, policy
chief of the ruling Liberal Democratic Party as saying
yesterday that there will be no Japanese bank failures in
the short term, but he would seek a drastic
restructuring of financial institutions.


NIPPON LIFE: Japan Insurers' Assets Shrink $171b
------------------------------------------------
The SCMP of June 10 says that Japan's eight biggest life
insurers lost 31 trillion yen or 3.4% of their 919 trillion
yen worth of individual insurance and pension fund assets
during the year to March. Customers withdrew most funds
from those companies believed to be in the worst shape.


NISSAN MOTOR: S&P Affirms Ratings; Off CreditWatch        
--------------------------------------------------
Standard & Poor's today affirmed its triple-'B'-minus long-
term ratings and 'A-3' short-term ratings of Nissan Motor
Co. Ltd. and related entities (see list below). At the same
time, the ratings were removed from CreditWatch, where they
were placed May 21, 1998 following the company's
announcement of its new restructuring plan. The outlook on
the long- term rating is negative.

The restructuring plan addresses Nissan's fundamental
problems of weakened product and sales competitiveness,
high cost structure, and a heavy debt burden. The plan
focuses on a major reduction of the company's model and
platform count, the shift towards a more flexible
manufacturing system, the consolidation of domestic sales
channels, and a sizable reduction of debt through sales of
various assets in the short to midterm. If successful, the
plan could put Nissan on a sounder footing in the year's
ahead.

Standard & Poor's expects the debt reduction to be
substantial: total debt to capital (adjusted for finance
receivables), currently over 70%, is expected to fall below
60% within the next few years. Only marginal improvement in
profitability is likely in the near term, in light of the
difficult business conditions the company faces in Japan
and the U.S.

The restructuring plan calls for drastic changes in
business and financial strategies, and Nissan will have
considerable difficulty in achieving its goals.


TAKASHIMA CREDIT: To Transfer Business to Shiga Bank
----------------------------------------------------
Kyodo News of June 11 reports Takashima Credit Cooperative
has given up restructuring on its own and will transfer its
business to Shiga Bank and Shigaken Credit Cooperative by
March 1999, the Shiga Prefecture-based company announced
Friday.

Takashima, which has eight outlets, will continue
operations until the transfer is complete. Repayments of
deposits totaling 37.5 billion yen will be entirely  
ensured, the cooperative said.

It holds some 6.1 billion yen in bad-debt assets following
the collapse of four of its main lenders over the past few
years, it said.


YASUDA: Japan Insurers' Assets Shrink $171b
-------------------------------------------
The SCMP of June 10 says that Japan's eight biggest life
insurers lost 31 trillion yen or 3.4% of their 919 trillion
yen worth of individual insurance and pension fund assets
during the year to March. Customers withdrew most funds
from those companies believed to be in the worst shape.

Asahi, Dai-ichi, Meiji, Sumitomo and Yasuda, using US
disclosure standards for the first time, revealed they had
a combined non-performing debt of 1.7 trillion yen, more
than double the amount they previously admitted to.
Nippon Life, Mitsui Life and Chiyoda Life refused to use
the new disclosure standards.

The flow of money out of life insurers, especially those
that seem financially weak, was sparked by the collapse in
April last year of Nissan Mutual which said its liabilities
outstripped assets by 10%.

Analysts said some weaker companies might be pushed into
the arms of interested buyers. This year a subsidiary of
General Electric agreed to purchase the sales business of
Toho Mutual Life Insurance, while the American
International Group said it might buy Aoba Life Insurance,
the company that took over the policies of the failed
Nissan Mutual Life Insurance.


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

DAEHAN TEXTILE COMPANY: Daehan Shares Trading Suspended
-------------------------------------------------------
The Korea Stock Exchange announced that trading of the
shares of the bankrupt Daehan Textile Company are suspended
for one day on June 12, 1998.


DAEKIL TRADING: Application for Court Receivership
--------------------------------------------------
The District Court in Seoul placed an announcement in the
Korean language Maeil Kyungje newspaper that Daekil Trading
Company had applied for court receivership. The address of
the company is 99-1 Karak-dong, Songpa-gu, Seoul, and the
president is Mr. Choe Pil-ho. Creditors have until July 31,
1998 to file their claims.


DONG AH: Alleged Embezzlement May De-rail Libyan Project
--------------------------------------------------------
Allegations that Mr. Choi Won-suk , the former chairman of
Dong Ah Construction Company, embezzled funds that his
company received for overseas projects may derail Dong Ah's
efforts to land a $1.3 billion order for the Phase II of
the Libyan government's Great Man-made River Project.  Mr.
Choi, who recently resigned as chairman in an effort to
save Dong Ah from a severe financial crisis, is suspected
of having hidden in overseas accounts money that his
company received for construction of waterways in Libya.

According to the Korea Herald, Dong Ah has so far managed
to survive its financial crisis with cooperative syndicated
loans amounting to nearly 1 trillion won ($714 million)
from Korean banks.  However, after news reports that Choi
is suspected of embezzling funds from overseas projects
emerged, the Libyan government has asked Dong Ah to clarify
its position on the scandal.  

The Korea Herald reported that before this scandal erupted,
the Libyan government had a positive response to the
proposal made by Dong Ah, which included hiring 2,000
Libyan labors for construction work. Dong Ah was
anticipating that this contract would have been signed
before the end of June.


HANGIL INTEGRATED: Financial Firm to Close Next Month
-----------------------------------------------------
The Financial Supervisory Board is to have an urgent
meeting on 12th of June, making a decision that Hangil
Integrated Finance should be closed by the end of next
month. Hangil's capital is 185 billion won and its biggest
holder is Seon Won Construction Engineering. Hangil is
having difficulty paying its depositors' withdrawals this
week because of the accumulation of insolvent bonds. The
abrupt withdrawals of depositors was prompted by rumors
that Seong Won Engineering Construction must have an
estimation of an insolvent enterprise.  


HYOSUNG GROUP: To Merge 4 Affiliates Into Single Company  
--------------------------------------------------------
The Hyosung Group announced yesterday that it will
integrate its four core affiliates into a single firm as
part of its sweeping corporate restructuring.

If and when the restructuring is completed, Hyosung's
subsidiaries, Hyosung T & C, Hyosung Living Industry,
Hyosung Heavy Industries and Hyosung Corp., will become one
company.

The new company will consist of units specializing in
chemical fiber, heavy electric equipment, financial
automation and general trading. It will be a "mega" company
with assets of 4.6 trillion won ($3.28 billion), group
officials said.

Hyosung, the nation's 16th largest conglomerate, or
chaebol, is also pushing for the sell-off of its
polypropylene and terephthalic acid (TPA) units to a
foreign firm, they said.

Hyosung is currently consulting its creditor, Hanil Bank,
on ways to commission international investment and
management consultants to help it carry out the
restructuring process.

In March, the conglomerate announced it would retain only
four of the 20 affiliates to respond to the restructuring
of the nation's economy. Chaebols have been told to
restructure or face liquidation in the aftermath of the
International Monetary Fund's $58-billion bailout package
for Korea.


JINRO COORS: Coors to Take Over JV Partner
------------------------------------------
Asia Pulse reports June 12 Coors, the third largest U.S.
brewery, announced Friday that it will pay $US100 million
in cash to take over its insolvent partner in its joint-
venture, Jinro-Coors, in South Korea.

George Mansfield, Coors' senior executive in charge of  
Asia-Pacific operations, told creditor banks of Jinro-Coors  
that his company wants to set up a new affiliate here to  
continue Jinro-Coors' operations, with capital of 330
billion  won (US$235 million), including $US100 million in
cash. Mansfield said his company had confidence in Jinro-
Coors' "Cass" brand of beer. But Coors also proposed that
creditor banks reduce Jinro-Coors' mountain of debts, close
to 650 billion won, and convert the rest into equity
investment, asking for an answer by the end of this month.

Jinro, the largest traditional hard liquor "soju' producer  
in Korea, established the brewery unit in a joint-venture
with Coors in 1994. The latter holds 33 percent stake in  
Jinro-Coors, which went insolvent last year.


KOREA TELECOM: Sale of State Enterprises to Foreigners
------------------------------------------------------
The SCMP of June 9 reports that the cash-strapped
government is poised to lure foreign investors back to its
fragile markets by selling off up to 12 top state-owned
assets. The report said that selling shares in state
enterprises to foreigners coincides with the government's
policy to revive South Korea's battered economy with the
help of foreign capital.


KOREA TOBACCO: Sale of State Enterprises to Foreigners
------------------------------------------------------
The SCMP of June 9 reports that the cash-strapped
government is poised to lure foreign investors back to its
fragile markets by selling off up to 12 top state-owned
assets. The report said that selling shares in state
enterprises to foreigners coincides with the government's
policy to revive South Korea's battered economy with the
help of foreign capital.

An official at the Ministry of Finance and Economy said the
government was considering the sale of part of its 35 per
cent stake in Korea Tobacco and Ginseng to foreign
investors, possibly in the form of depository receipts in
overseas capital markets, but the plan had not yet been
finalised by all ministries.


NAMHAE CHEM CORP: Sale of State Enterprises to Foreigners
---------------------------------------------------------
The SCMP of June 9 reports that the cash-strapped
government is poised to lure foreign investors back to its
fragile markets by selling off up to 12 top state-owned
assets. The report said that selling shares in state
enterprises to foreigners coincides with the government's
policy to revive South Korea's battered economy with the
help of foreign capital.


NATIONAL TEXTBOOK: Sale of State Enterprises to Foreigners
----------------------------------------------------------
The SCMP of June 9 reports that the cash-strapped
government is poised to lure foreign investors back to its
fragile markets by selling off up to 12 top state-owned
assets. The report said that selling shares in state
enterprises to foreigners coincides with the government's
policy to revive South Korea's battered economy with the
help of foreign capital.


NEW MAX COMPANY: New Max Shares Trading Suspended
-------------------------------------------------
The Korea Stock Exchange announced that trading of the
shares of the New Max Company are suspended for one day on
June 12, 1998. New Max has just begun a court receivership
procedure.


POHANG IRON: Sale of State Enterprises to Foreigners
----------------------------------------------------
The SCMP of June 9 reports that the cash-strapped
government is poised to lure foreign investors back to its
fragile markets by selling off up to 12 top state-owned
assets. The report said that selling shares in state
enterprises to foreigners coincides with the government's
policy to revive South Korea's battered economy with the
help of foreign capital.


WOO SUNG INSTALLMENT FINANCE: Submits Business Cancellation
-----------------------------------------------------------
Woo Sung Housing Installment Finance, a subsidiary of Woo
Sung Construction, has submitted a request for business
registration cancellation.  This is after the Korea Housing
Installment Finance, a subsidiary of Line Construction, was
treated as bankrupt on 10th of June, for the first time out
of Installment Financial Businesses.


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

BAIK MAJU SDN BHD: Winding-up Petition
--------------------------------------
The members of Baik Maju Sdn Bhd on 10/6/98 resolved to
wind up the company. Creditors of the company are required
to submit their claims by 10/7/98.


ETS AGENCY SDN BHD: Winding-up Petition
---------------------------------------
Konsortium Perkapalan Bhd, listed in the KLSE, (petitioner)
on 17/4/98 petitioned the winding-up of ETS Agency Sdn Bhd
(respondent). Hearing was set on 17/7/98.


EKSPRES TAIPING-JOHOR BAHARU SDN BHD: Winding-up Petition
---------------------------------------------------------
UOL Credit Sdn Bhd (petitioner) on 29/5/97 petitioned for
the winding-up of Ekspres Taiping-Johor Baharu Sdn Bhd
(respondent).


FUSU PLASTIC INDUSTRIES SDN BHD: Winding-up Petition
----------------------------------------------------
Schlemmer (M) Sdn Bhd (petitioner) on 4/6/98 petitioned the
winding-up of Fusu Plastic Industries Sdn Bhd (respondent).
Hearing was set on 7/8/98.


HASIL LUAS SDN BHD: Winding-up Petition
---------------------------------------
The members of Hasil Luas Sdn Bhd on 10/6/98 resolved to
wind-up the company voluntarily. Creditors of the company
would be given up to 10/7/98 to submit their claims.


PENGKALEN CAPITAL BHD: Scheme of Arrangement
--------------------------------------------
Two subsidiaries of Pengkalen Capital Bhd (listed in the
KLSE), which are presently under trading restrictions, is
proposing a scheme of arrangement to the Securities
Commission. However, no details were released thus far.

On June 8, Pengkalen Capital changed its proposed rights
issue from 3 for 1 existing share, to 5 for 1. This would
raise the capital of Pengkalen Capital by 421.81mil new
shares of RM1 each.


SCK GROUP: High Court Dismisses Bank's Petition
-----------------------------------------------
The High Court has dismissed Multi-Purpose Bank Bhd's
application to wind up SCK Group Bhd unit, SCK
Furnishing Sdn Bhd, over its failure to settle debts
amounting to 495,612 Malaysian ringgit (S$215,889), The New
Straits Times reported.

It said the case was dismissed on a technicality as the
statutory notice served on the company did not have the
date of the service.

Multi-Purpose Bank has also filed winding up petitions
against SCK Group and its two other subsidiaries --
Shanghai Chong Kee Construction Sdn Bhd and SCK Cerabrics
Sdn Bhd, the newspaper reported. The petition against SCK
Group will be heard on June 26.


SUNDROP FRUIT JUICES BHD: Winding-up Petition
---------------------------------------------
Kuala Lumpur Glass Manufacturers Co. Sdn Bhd (petitioner)
on 30/3/98 petitioned for the winding-up of Sundrop Fruit
Juices Bhd (respondent). Hearing was set on 7/8/98.


UTUSAN MELAYU (M) BHD: Winding-up Petition Withdrawn
----------------------------------------------------
Utusan Melayu (M) Bhd said its unit, Utusan Printcorp Sdn
Bhd, has paid RM40,946.96 to the solicitors of Ski
Machinery Enterprises (M) Sdn Bhd, Bernama news agency
reported. In turn, Ski Machinery has agreed to withdraw a
winding up petition against the company.


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

DAGUPAN CITY RURAL BANK: Takeover by PDIC
-----------------------------------------
RP-Business News reports June 11 the Philippine Deposit
Insurance Corporation (PDIC) has taken over the ailing
Dagupan City Rural Bank (Pangasinan) Inc., effective June 5
this year. This is pursuant to Resolution No. 804 of the
Bangko Sentral ng Pilipinas dated June 3, 1998 that
prohibited the bank to do business and at the same time
designated the PDIC as receiver. In compliance with the
resolution, the PDIC effected the take-over of the assets,
records and affairs of the bank on June 5, 1998.

The PDIC advised clients of the bank that payment of loans
and other obligations to the bank shall be made only to the
PDIC deputy receiver. The PDIC receivership team is
presently conducting an inventory and thorough examination
of the deposit liabilities of the bank in preparation for
the servicing of the insured deposits. The duration of
the examination will depend on the state/orderliness of the
bank records.


VICTORIAS MILLING: Creditors Seek Probe on Auditor
--------------------------------------------------
Victorias Milling Co., Inc.'s (Vicmico) creditor banks are
not about to let accounting firm Sycip Gorres Velayo & Co.
(SGV) walk away that easily from any liability in
connection with fraudulent attempts to overstate the sugar
firm's assets from 1994 to 1996, according to a June 11
report in Manila Times.

SGV was Victorias' external auditor in those years but
claimed that it, too, was misled by some Victorias managers
who submitted grossly inflated figures. Last October, SGV
formally informed the Securities and Exchange Commission
(SEC) it was withdrawing its audit reports on Vicmico's
financial statements for the said period.

SEC, based on newpaper reports a couple of weeks ago,
appeared predisposed to accept SGV's explanation that it
was "misled" by erring company officials.

Vicmico's creditors, however, want the matter probed more
deeply at a proper forum.


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

FINANCE ONE: Insider Trading Charges Pending
--------------------------------------------
Senior executives of Finance One and Union Asia Finance
will be accused of insider trading for selling off company
shares before the two firms were taken over by the Bank of
Thailand. The Securities and Exchange Commission is
finalising its investigation into share movements and sales
at the two companies.

At Finance One, unusual share transactions had been
detected just as the company was undergoing financial
difficulties, said Dr Prasarn Trairatvorakul, SEC deputy
secretary-general.

Finance One, once the largest finance company in the
country, was taken over by the Bank of Thailand last June.
The company was later ordered closed.


HANTEX PLC: SET Places Halt on Trading
--------------------------------------
The SET halts  securities trading against Hantex Public
Company Limited for not longer than one session on 12 June
1998 since there is information concerning about the HTX'
shareholder restructuring but the company has not disclosed
such information to the SET.  


NORTH STAR PUBLIC COMPANY LIMITED: Faces Possible Delisting
-----------------------------------------------------------
The SET has informed NSTAR that it faces possible delisting
because the company has not prepared a 1997 Annual Report
and has failed to clarify additional information regarding
its annual financial statement ending 31 December 1997
within the deadline of 20 May 1998.  The SET has asked the
company to clarify its Value Added Tax and witholding tax,
its account receivables - affiliate companies and its
account receivables and loans to other person and advances
to other companies.

This additional information affects NSTAR's financial
status and the results of its business operations and has a
serious affect on the company because of its non-compliance
with the relevant laws. NSTAR informed the SET of the
postponement but did not explain the causes of the delay or
give a deadline for when it could supply the required
information.

By virtue of a new categorization policy for listed
companies facing possible delisting, NSTAR will be
transferred to a category called Companies Under
Rehabilitation (REHABCO) from 17 June 1998 onwards.  


UNION ASIA FINANCE: Insider Trading Charges Pending
---------------------------------------------------
Senior executives of Finance One and Union Asia Finance
will be accused of insider trading for selling off company
shares before the two firms were taken over by the Bank of
Thailand. The Securities and Exchange Commission is
finalising its investigation into share movements and sales
at the two companies.

The Sophonpanich family, major shareholders of Bangkok
Bank, had controlled the largest share of Union Asia
Finance as late as last year. Chartsiri Sophonpanich,
president of Bangkok Bank, acknowledged that the family had
divested its stake in Union Asia Finance before the company
was taken over.


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
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contained herein is obtained from sources believed to be
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subscription information, contact Christopher Beard at
301/951-6400.

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