/raid1/www/Hosts/bankrupt/TCRAP_Public/980616.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R    =20
=20
             A S I A   P A C I F I C     =20

      Tuesday, June 16, 1998, Vol. 1, No. 81

                    Headlines


C H I N A   &   H O N G   K O N G

CLIMAX INTERNATIONAL: Extension on Limit of Debt Proposal
FORLUXE SECURITIES: Forluxe Clients Await Court Date
LAWS INTERNATIONAL: Bermuda Sanctions Privatisation
MACRO INVESTMENT (HK) COMPANY LIMITED: Winding-up Notice
PEREGRINE INVESTMENTS: Guarantees Eat Into Creditor Dues=20
WHEELOCK MARDEN : Wheelock Cleared of Fraud


I N D O N E S I A

PT BARITO PACIFIC: Timber Company Reports Losses


J A P A N =20

ALPHA: Bankruptcies Rise 36.6% as GDP Contracts
TACT: Bankruptcies Rise 36.6% as GDP Contracts


K O R E A=20

CHONGGU BUSINESS GROUP: Chairman Charged With Embezzlement
DAEWOO MOTORS: GM Denies US$2b Daewoo Deal
DOOSAN GROUP: Cedes Control of JV to Canadian Partner
HANBO IRON: USX Denies Interest in Takeover
HANGIL MERCHANT BANK: Commission Suspends Bank

HANIL GROUP: To Merge Key Units in Restructuring
HYUNDAI INDUSTRY: Application for Court Receivership
JINRO COORS: Coors May Take Over Korean Brewery           =20
KIA MOTORS: Kia Locks Out Strikers
KYUNGKI BANK: Kyungki Bank Receives Reprimand

LG SEMICON: Finalises Capital Infusion
POHANG IRON: Will Curtail Steel Production This Year
PUMHAN METAL COMPANY: Court Orders Company Liquidation
SONGWON CONSTRUCTION: Rumors Cause Bank Run
TAEWANG DEVELOPMENT: Company Under Receivership


M A L A Y S I A

AMERICAYA SHOE: Members' Voluntary Winding-up
ARUS MURNI CORPORATION BHD: 1997 Results Announcement
BAIK MAJU SDN BHD: Winding-up Petition
DATACENTRALEN SERVICES: Members' Voluntary Winding-up
DISTINCTIVE & COMFORT SDN BHD: Winding-up Petition

EKSPRES TAIPING-JOHOR: Winding-up Petition
ETS AGENCY SDN BHD: Winding-up Petition
FUSU PLASTIC INDUSTRIES: Winding-up Petition
HASIL LUAS SDN BHD: Winding-up Petition
KUALA LUMPUR INDUSTRIES BHD: Restructuring Proposal

LEONG HOCK SENG MARKETING SDN BHD: Winding-up Petition
LOHSUNG HOLDINGS SDN BHD: Members' Voluntary Winding-up
PENGKALEN CAPITAL BHD: Scheme of Arrangement
PERDANA INDUSTRI: Defaults on Credit Facilities
SPK-SENTOSA CORPORATION BHD: 1997 Results Announcement

SIN KI PILING & ENGINEERING: Winding-up Petition
SPEM ENTERPRISE SDN BHD: Members' Voluntary Winding-up
SUNDROP FRUIT JUICES BHD: Winding-up Petition
T.S. MEWAH SDN BHD: Winding-up Petition
TIMBERMASTER INDUSTRIES BHD: Aborts Acquisition


P H I L I P P I N E S=20

PHILIPPINE AIRLINES: To Resume Some Flights
VICTORIAS MILLING: Shareholders Oppose Strategic Partner


T H A I L A N D=20

FINANCE ONE: Insider Trading Probe Into Thai Firms
HANTEX PLC: SET Extends 'SP' Sign on Listing
MALEE SAMPRAN: Company's Rehabilitation Succeeding
NORTH STAR: Placed in 'Rehabco' Sector by SET
UNION ASIA FINANCE: Insider Trading Probe Into Thai Firms




=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D
C H I N A   &   H O N G   K O N G
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D

CLIMAX INTERNATIONAL: Extension on Limit of Debt Proposal
---------------------------------------------------------
Climax International Company Ltd announced another further=20
extension of the time limit in relation to the Debt=20
Restructuring Proposal to June 17, 1998. The terms of the=20
proposal are still in the process of being finalised.


FORLUXE SECURITIES: Forluxe Clients Await Court Date
----------------------------------------------------
An article on the SCMP of June 13 says that provisional=20
liquidators of Forluxe Securities and its margin finance=20
arm have sought court directions to return shares held by=20
the broker if they can be matched with clients' claims. A=20
court hearing will be held on July 21. The provisional=20
liquidators will meet clients on June 30 to discuss the
proposed method of returning shares and to update them on=20
the liquidation.


LAWS INTERNATIONAL: Bermuda Sanctions Privatisation
---------------------------------------------------
Laws International Holdings has announced the Supreme Court=20
of Bermuda has sanctioned its privatisation plan in the=20
exercising of its powers under the Companies Act on Jun 12=20
(Bermuda time). Assuming registration of the order of the=20
Court, the deadline for share dealing would be 4pm on Jun=20
19.


MACRO INVESTMENT (HK) COMPANY LIMITED: Winding-up Notice
--------------------------------------------------------
The Hong Kong Standard of June 13 shows a notice which says=20
that a petition for the winding up of Macro Investment (HK)=20
Company Limited was presented on May 21 to the High Court=20
by Chan Lung Pat, and that the petition was directed to be=20
heard before the court at 11:00 am on June 24.


PEREGRINE INVESTMENTS: Guarantees Eat Into Creditor Dues=20
--------------------------------------------------------
As reported on the SCMP of June 13, Price Waterhouese,=20
liquidator of the above named, said that as of December 31,=20
Peregeine Investments Holdings (PIH) had contigent=20
liabilities under guarantee worth $43 billion, meaning=20
creditors could face a payout of as little as nine cents in=20
the dollar. Many of the guarantees may have already lapsed=20
as transactions were completed, but the liquidator had not=20
yet quantified the active guarantees.

PIH, which acted as banker for its subsidiaries, made most=20
of the guarantees to third parties involved in transactions=20
with its fixed income subsidiary, and in the days leading=20
up to its January 13 collapse, PIH entered into new=20
guarantees in its desperate effort to keep subsidiaries=20
afloat, so the final figure could be much bigger.

To date only $4.5 billion of gurarantee clamis from third=20
parties had been lodged. If the guarantees resulted in=20
liabilities worth $20 billion, payout to creditors would be=20
as low as nine cents in the dollar. If no liabiliites were=20
generated by the gurarantees the payout could be as high as=20
40 cents in the dollar. Price Waterhouse said they were not=20
able to estimate how much of these gurantees will come home=20
to roost.

So far they have estimated the company's debts to be about=20
$16.5 billion. The parent's assets were worth $6.53 billion=20
to $3.22 billion, depending on the payout from Peregrine=20
Fixed Income, which represented more than 50% of PIH's=20
assets.

A more comprehensive picture of Peregrine's creditors=20
emerged yesterday with 16 parties applying to be members of=20
the creditors' committee of inspection. Creditors included=20
Goldman Sachs, Union Bank of Switzerland, Australia and New=20
Zealand Banking Group and the First National Bank of
Chicago.

Liquidators had told shareholders they would not receive=20
any compensation. Under the Hong Kong Companies' Ordinance,=20
creditors must be paid in full before shareholders of a=20
public company can receive any compensation.

Price Waterhouse fees for provisional liquidation work to=20
May 31 were $45 million. Creditors and shareholders voted=20
to install the firm as permanent liquidator.

Price Waterhouse partner indicated that legal action would=20
only be launched if it was in the interests of maximizing=20
the return to creditors for it's not the liquidator's job=20
in getting justice.=20

Reading a prepared statement, former chairman Philip Tose=20
told shareholders the Peregrine group had collapsed because=20
of the unprecedented meltdown of Asian markets in the six=20
months to mid-January. Financial Secretary is considering a=20
SFC report before deciding whether to launch an independent=20
investigation.

At its peak, Peregrine dubbed itself one of the biggest=20
independent investment banks in the region, employing 1,800=20
people and generating a pretax profit of $1.02 billion in=20
1996.=20

According to a Hong Kong Standard report, Price Waterhouse=20
has estimated contingent liabilities under guarantee to be=20
in the region of $60 billion. The Hong Kong Standard also=20
says that creditors may have to wait up to five years=20
before getting payouts.

According to the Hong Kong Standard, Price waterhouse=20
partner told creditors that liquidators could possible=20
recover 40% of monies owed to creditors f Peregrine's=20
assets were valued at $6.53 billion, a high end estimate,=20
and contingent liabilities were zero. At the low end of
expectations, assets may be valued at $3.22 billion,=20
leading to a rate of recovery of 9% if contigent=20
liabilities were as high as $20 billion.


Wheelock Marden : Wheelock Cleared of Fraud
-------------------------------------------
The Court of Appeal yesterday cleared Wheelock Marden of=20
fraud and threw out a bill of more than $700 million=20
Wheelock faced as a result of a legal battle with a Danish=20
finance institution.

The Court of Appeal reversed a judgment by Justice Nicholas=20
Barnett last year which ordered the Hong Kong company to=20
pay damages to Aktieselskabet Dansk Skibsfinansiering=20
(ADS).

Mr. Justice Barnett found Wheelock Marden and former=20
director Francis Brothers had hidden cash-flow reports when=20
it obtained loans from ADS to upgrade the shipping fleet=20
Maritime International (WMI).

WMI went into liquidation in 1985 and ADS claimed it was=20
misled over the company's ailing financial position. But=20
the Court of Appeal yesterday upheld an appeal by Wheelock=20
Marden and Mr Brothers, clearing them of any fraud.


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
I N D O N E S I A
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

PT BARITO PACIFIC: Timber Company Reports Losses
------------------------------------------------
PT Barito Pacific, an Indonesian timber giant reported a=20
loss of 39.1 billion rupiah(US$2.8 million for the year of=20
1997, as compared with 1996 earnings of 87.3 billion=20
rupiah. The company said the loss was due to a foreign-
exchange loss on swap transaction that inflated its loss=20
from 110 billion rupiah to 143.9 billion rupiah. =20


=3D=3D=3D=3D=3D=3D=3D=3D=3D
J A P A N =20
=3D=3D=3D=3D=3D=3D=3D=3D=3D

ALPHA: Bankruptcies Rise 36.6% as GDP Contracts
-----------------------------------------------
An article on the SCMP of June 13 about the general=20
situation of bankruptcies in Japan says that last month no=20
publicly traded companies went bankrupt. The biggest=20
failure involved Alpha, a Hokkaido based real estate=20
developer, with liabilities of 106 billion yen. Tact, a=20
real estate agency also based in Hokkaido, went under with=20
liabilities of 98 billion yen.


TACT: Bankruptcies Rise 36.6% as GDP Contracts
----------------------------------------------
An article on the SCMP of June 13 about the general=20
situation of bankruptcies in Japan says that last month no=20
publicly traded companies went bankrupt. The biggest=20
failure involved Alpha, a Hokkaido based real estate=20
developer, with liabilities of 106 billion yen. Tact, a=20
real estate agency also based in Hokkaido, went under with=20
liabilities of 98 billion yen.


=3D=3D=3D=3D=3D=3D=3D=3D=3D
K O R E A=20
=3D=3D=3D=3D=3D=3D=3D=3D=3D

CHONGGU BUSINESS GROUP: Chairman Charged With Embezzlement
----------------------------------------------------------
Mr. Chang Soo-hong, chairman of the failed Chonggu Business
Group, was charged last week with embezzling 21.7 billion=20
won from his construction company.  According to the Korea=20
Herald, Mr. Chang is also suspected of bribing politicians=20
in Taegu (Korea's third largest city) where Chonggu is=20
headquartered.

The Korea Herald additionally cites an official from the=20
current ruling National Congress for New Politics political=20
party as calling for an investigation into the relationship=20
between the Chonggu Business Group and the opposition Grand=20
National Party.


DAEWOO MOTORS: GM Denies US$2b Daewoo Deal
------------------------------------------
According to a "Bloomberg in Seoul" article in the SCMP of=20
June 13, General Motors Corp denied comments attributed to=20
chairman Jack Smith that the company planned to invest=20
US$2b in Daewoo Group as part of its push to expand in=20
Asia. GM spokesman said there were talks, but the final=20
stages were not reached yet.

Daewoo Group chairman Kim Woo-choong has said he expected=20
talks with GM to finish by the end of this month.

Daewoo, like other Korean manufacturers, is seeking=20
partnerships with overseas companies to help it withstand=20
the Korean economy's slump. GM is interested in=20
strengthening its position in Asia.


DOOSAN GROUP: Cedes Control of JV to Canadian Partner
-----------------------------------------------------
The Korea Herald reports June 16 brewery-based Doosan Group=20
has handed over the managerial control of its whiskey-
producing joint venture, Doosan Seagram, to its Canadian=20
partner in a $90-million deal, a company spokesman said=20
yesterday.=20

Doosan sold 27.8 percent out of its 50-percent share in=20
Doosan Seagram to the Canadian whiskey giant Seagram Co.=20
for $59 million, he said. In addition, Seagram has agreed=20
to lend $31 million in a long-term loan at an annual=20
interest rate of 5 percent.=20

With its 77.8-percent share, Seagram will be taking over=20
the management of the joint-venture firm. Doosan-Seagram,=20
established in 1980, holds up to 60 percent of the nation's=20
$640-million whiskey market. Doosan, on the other hand,=20
will be taking leave of the administration of the whiskey=20
producer, with the exception of participating in some=20
managerial decisions through its remaining 22.2-percent=20
share in Doosan Seagram, the spokesman said.=20

The latest equity sell-off is part of Doosan's efforts to=20
improve the group's financial structure. The beverage-food=20
conglomerate plans to sell or merge 19 out of its 23=20
subsidiaries by the end of this year to also specialize in=20
advertising and construction.=20


HANBO IRON: USX Denies Interest in Takeover
-------------------------------------------
Asia Pulse of June 15 reports U.S. steelmaker USX Corp. has=20
no desire to take over South Korea's financially burdened=20
Hanbo Iron and Steel Co., according to USX Corp. Chairman=20
Thomas Usher Sunday.

Usher, visiting Seoul for the annual Korea-U.S. Business=20
Council meeting, said his company will not participate in=20
international bidding to acquire the financially troubled=20
Korean steelmaker, an indication that international tender=20
for Hanbo may draw little interest from the world's steel=20
leaders.


HANGIL MERCHANT BANK: Commission Suspends Bank
----------------------------------------------
The Financial Supervisory Commission (FSC) suspended=20
operations of the Taejon-based Hangil Merchant Bank due to=20
a liquidity crisis following a run on customers' deposits. =20
The suspension is in effect until July 31, and was prompted=20
when the bank could not pay back customer deposits worth=20
111 billion won over the last two weeks. =20

With the suspension, the payment of Hangil's deposits and=20
debts were frozen and the Korea Stock Exchange (KSE)=20
suspended trading the banks shares for one day.  However,=20
trading resumes on June 13 under the supervision of the=20
KSE.

In the fiscal year ending in March, the Hangil Bank=20
recorded a 88.24 billion won loss, and its capital adequacy=20
ratio set by the Bank for International Settlements (BIS)=20
was calculated to be only 5.6 percent. =20

The FSC has indicated that the Hangil Merchant Bank may=20
resume operations if it can boost its BIS ratio to 6=20
percent.  However, if it fails to do so, it will be judged=20
to be non-viable and subject to liquidation.

The Hangil Merchant Bank, which has 1.47 trillion won in=20
assets and 1.35 trillion won in liabilities, was founded in=20
1979 and purchased by the Nasan textile group in 1996.  A=20
40 percent stake was later sold to the Songwon Construction=20
Firm in 1997. =20

According to the Korea Times, the bank run was prompted by=20
rumors that the Songwon Construction Firm would be place on=20
a list of nonviable firms for liquidation.  This list is=20
being generated by  Korea's banks at the direction of the=20
FSC in order to classify firms with large outstanding loans=20
into three groups - normal, viable, and nonviable.  Banks=20
were further directed to stop extending loans to those=20
firms if they are on the list of nonviable companies. =20


HANIL GROUP: To Merge Key Units in Restructuring
------------------------------------------------
The Hanil Group, the country's 31st largest conglomerate,=20
will merge its key units, Hanil Synthetic Fiber Co. and=20
Kukje Corp., as a part of the group wide restructuring,=20
according to the Korea Herald of June 16.=20

Group Chairman Kim Joong-won announced the reform plan at a=20
press conference held at Hanil headquarters in Seoul=20
yesterday.=20

Group officials also said that they aim to draw upwards of=20
$600 million from overseas investors by the year 2000.=20

The blueprint unveiled yesterday is Hanil's turnaround=20
plan, worked out in consultation with Price Waterhouse of=20
the United States and its main creditor bank, Hanil Bank.=20

The units being placed on selling block are development,=20
resort and chemical concerns. Through the merger of two key=20
companies, the group plans to concentrate on fiber=20
manufacturing, trading and construction, according to=20
officials.=20

The sell-off plan hopes to raise some 1.1. trillion won, to=20
be used for cutting Hanil's debt-to-equity ratio to 200=20
percent, as required by government reform authorities.


HYUNDAI INDUSTRY: Application for Court Receivership
----------------------------------------------------
The District Court in Taechun placed an announcement in the
Korean language Maeil Kyungje newspaper that Hyundai=20
Industry Company had applied for court receivership.  The=20
address of the company is 483-28 Yachon-ri, Kayagok-myun,=20
Nonsan-shi and the president is Mr. Chun Byung-soon. =20
Creditors have until July 11, 1998 to file their claims.

Hyundai Industry Company is not to be confused with the=20
Hyundai Group, one of Korea's largest conglomerates.


JINRO COORS: Coors May Take Over Korean Brewery           =20
-----------------------------------------------
The Associated Press reports Coors Brewing Co. has offered=20
to invest $100 million to take over its joint venture with=20
South Korea's troubled third largest brewery, Korean bank=20
officials said Friday. But Coors, based in Golden, Colo.,=20
demanded that creditor banks of Jinro-Coors Brewing Co.=20
first write off more than half of the company's $481=20
million debt and turn the rest into equity.

Commercial Bank of Korea and other creditors said they=20
would respond to the proposal by the end of this month.
Jinro-Coors is now running under court receivership after=20
its mother company, Jinro, went bankrupt last September.


KIA MOTORS: Kia Locks Out Strikers
----------------------------------
The Kia Motor Corporation announced it would shut down its=20
three auto plants until June 25 and that it had no other=20
choice than to lock out the more militant members of labor=20
unions, which had taken to strong-arm tactics since the=20
beginning of their indefinite strike on June 1. =20

A Korea Herald report states that the union is demanding=20
back wages, a reversal of Kia's decision to regard their=20
strike as an absence from work, and that no criminal=20
charges be filed against the union. The union also claims=20
that they have only been paid half of their wages since Kia=20
declared bankruptcy in July of 1997.

Kia officials said that the strike has already resulted in=20
about 140 billion won ($100 million) in losses. Kia also=20
claims that the workers demands are unacceptable, as Kia is=20
already insolvent and has been in court receivership with=20
debts of over 10 trillion won ($7.2 billion).


KYUNGKI BANK: Kyungki Bank Receives Reprimand
---------------------------------------------
The Kyungki Bank has received a "Reprimand" from the Bank
Supervisory Authority (BSA).  This bank had extended loans
amounting to 124 billion won to the struggling Dooray=20
Company and two of its affiliates last year without=20
considering these companies' capacity to repay or their=20
business prospects. =20

The BSA also imposed a "Reprimand" warning on the president=20
of the bank, Mr. Suh Yi-suk, and the bank's 20 senior=20
executives because of these bad loans.  Under BSA=20
regulations, a bank executive who is served with a=20
reprimand warning cannot be renamed as a bank executive for=20
three years. =20

The Korea Herald reported that because of this BSA move,=20
Kyungki Bank will face difficulty in implementing a 135=20
billion won rights offering to shareholders in order to=20
acquire needed capital.  The Kyungki Bank's capital=20
adequacy ratio stood at 6.69 percent when calculated at the=20
end of last year using the standards set by the Bank for=20
International Settlements (BIS). =20

The Korea Herald has previously reported this month that=20
large banks with capital adequacy ratios below the 8=20
percent required by the BIS could be potentially=20
liquidated.


LG SEMICON: Finalises Capital Infusion
--------------------------------------
Asia Pulse of June 15 reports LG Semicon Co., an affiliate=20
of the LG Group, is expected to be exempt from exchanges of=20
businesses between Korea's top five business groups due to=20
its raising of foreign capital during the recent visit by=20
President Kim Dae-jung to the United States.

A source at the Commerce, Industry and Energy Ministry said=20
Monday that "During the Korea investment forums held in New=20
York and Los Angeles from June 8 to 12, it is understood=20
that LG Semicon finalised an infusion of foreign capital.=20
In view of that, the possibility of LG Semicon being=20
involved as a big deal target is nil," he said.

LG Semicon is expected to raise foreign capital through=20
joint venture or equity participation with its new American=20
partner Intel, business sources said.=20


POHANG IRON: Will Curtail Steel Production This Year
----------------------------------------------------
The Korea Herald reports Pohang Iron and Steel Co. (POSCO)=20
has decided to curtail steel production by 1.7 million tons=20
this year, a POSCO spokesman said yesterday. Under the=20
decision, state-run POSCO's steel production will fall from=20
26.4 million tons in 1997 to 24.7 million tons this year,=20
he said.=20

Key factors behind the decision are sluggish sales and=20
snowballing stockpiles stemming from reduced steel demand=20
among the local auto, home appliance, and construction=20
industries, he said.=20

POSCO, the world's second largest steel company after=20
Japan's Nippon Steel Co., has taken major steps to=20
streamline its overall structure amid plunging sales at=20
home and abroad.=20

Meanwhile, the Seoul government, which owns a 33-percent=20
stake in POSCO, has promised to allow foreign ownership of=20
up to 30 percent in line with its privatization program for=20
state-run companies.=20


PUMHAN METAL COMPANY: Court Orders Company Liquidation
------------------------------------------------------
According to a report in the Korean language Maeil Kyungje,=20
the Changwon District Court ordered the Pumhan Metal=20
Company, an affiliate of Honga Sea Transport Company, to be=20
liquidated in order to normalize the company's management.=20


SONGWON CONSTRUCTION: Rumors Cause Bank Run
-------------------------------------------
According to the Korea Times, a run on the Hangil Merchant=20
Bank run was prompted by rumors that the Songwon=20
Construction Firm would be place on a list of nonviable=20
firms for liquidation. This list is being generated by =20
Korea's banks at the direction of the Financial Supervisory=20
Commission (FSC) in order to classify firms with large=20
outstanding loans into three groups - normal, viable, and=20
nonviable.  Banks were further directed to stop extending=20
loans to those firms if they are on the list of nonviable=20
companies. =20

The Songwon Construction Firm purchased a 40 percent stake=20
in the Hangil Merchant Bank in 1997.  Operations at the=20
Taejon based bank have been suspended until July 31.

The FSC, Korea's newly formed financial watchdog agency, is
charged with supervising banks and overhauling the=20
financial sector.=20


TAEWANG DEVELOPMENT: Company Under Receivership
-----------------------------------------------
The Seoul District Court has decided to place the Taewang=20
Development Company under court receivership. The company's=20
address is 108-2 Pyungchang-dong, Chongno-gu, Seoul and the=20
Presidents are Mr. Kim Tae-jun and Kim Wang-sik.=20


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
M A L A Y S I A
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

AMERICAYA SHOE: Members' Voluntary Winding-up
---------------------------------------------
The members of Americaya Shoe Company Sdn Bhd on 8/6/98=20
resolved to wind-up the company voluntarily. Creditors are=20
given up to 15/7/98 to submit their claims.


ARUS MURNI CORPORATION BHD: 1997 Results Announcement
-----------------------------------------------------
Arus Murni Corporation Bhd, a company listed in the KLSE,=20
announced a plunge of 5,364.6% in after-tax profits, from=20
RM6.6million profits for the year 1996 to a loss of=20
RM349.3million for the year 1997.

Earnings Per Share dropped 2,711.1% from RM0.09 in 1996, to=20
RM2.35 of loss per share in 1997.


BAIK MAJU SDN BHD: Winding-up Petition
--------------------------------------
The members of Baik Maju Sdn Bhd on 10/6/98 resolved to=20
wind-up the company. Creditors of the company are required=20
to submit their claims by 10/7/98.


DATACENTRALEN SERVICES: Members' Voluntary Winding-up
-----------------------------------------------------
The members of Datacentralen Services (Malaysia) Sdn Bhd on=20
5/6/98 resolved to wind-up the company voluntarily.=20
Creditors are given up to 14/7/98 to submit their claims.


DISTINCTIVE & COMFORT SDN BHD: Winding-up Petition
--------------------------------------------------
Complete Point Sdn Bhd (petitioner) on 2/5/98 petitioned=20
for the winding-up of Distinctive & Comfort Sdn Bhd=20
(respondent). Hearing was set on 15/7/98.


EKSPRES TAIPING-JOHOR: Winding-up Petition
------------------------------------------
UOL Credit Sdn Bhd (petitioner) on 29/5/97 petitioned for=20
the winding-up of Ekspres Taiping-Johor Baharu Sdn Bhd=20
(respondent).


ETS AGENCY SDN BHD: Winding-up Petition
---------------------------------------
Konsortium Perkapalan Bhd, listed in the KLSE, (petitioner)=20
on 17/4/98 petitioned the winding-up of ETS Agency Sdn Bhd=20
(respondent). Hearing was set on 17/7/98.


FUSU PLASTIC INDUSTRIES: Winding-up Petition
--------------------------------------------
Schlemmer (M) Sdn Bhd (petitioner) on 4/6/98 petitioned the=20
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=20
wind-up the company voluntarily. Creditors of the company=20
would be given up to 10/7/98 to submit their claims.


KUALA LUMPUR INDUSTRIES BHD: Restructuring Proposal
---------------------------------------------------
Kuala Lumpur Industries Holdings Bhd, listed in the KLSE,=20
is in a midst of a proposed restructuring scheme. Details=20
will be announced upon finalisation.


LEONG HOCK SENG MARKETING SDN BHD: Winding-up Petition
------------------------------------------------------
Paragon Produce Pty Ltd (petitioner) on 13/5/98 petitioned=20
for the winding-up of Leong Hock Seng Marketing Sdn Bhd=20
(respondent). Hearing was set on 18/8/98.


LOHSUNG HOLDINGS SDN BHD: Members' Voluntary Winding-up
-------------------------------------------------------
The members of Lohsung Holdings Sdn Bhd resolved on 10/6/98=20
to wind-up the company voluntarily. Creditors are given up=20
to 15/7/98 to submit their claims.


PENGKALEN CAPITAL BHD: Scheme of Arrangement
--------------------------------------------
Two subsidiaries of Pengkalen Capital Bhd (listed in the=20
KLSE), which are presently under trading restrictions, is=20
proposing a scheme of arrangement to the Securities=20
Commission. However, no details were released thus far.

On June 8, Pengkalen Capital changed its proposed rights=20
issue from 3 for 1 existing share, to 5 for 1. This would=20
raise the capital of Pengkalen Capital by 421.81mil new=20
shares of RM1 each.


PERDANA INDUSTRI: Defaults on Credit Facilities
-----------------------------------------------
Perdana Industri Holdings Bhd (PIHB), a shoe manufacturer=20
listed in the KLSE, said it has defaulted in payments over=20
its borrowings with various financial institutions due to=20
poor performance of its business and its failure to=20
generate sufficient cash flow to meet its financial
obligations.

Low consumer spending and escalating costs hampered the=20
group's efforts to strengthen its profitability.

PIHB had defaulted in payments involving borrowings with=20
MBf Finance Bhd amounting to RM138million to finance the=20
group's proposed acquisition of several companies. The=20
proposed acquisition was rejected by the Securities=20
Commission and PIHB is taking legal action against the
vendors and third parties involved to recover advance=20
payments remitted.

PIHB also defaulted on about RM32million over borrowings=20
and over-draft facilities with various banks.

MBf Finance had on April 15 obtained a court order for the=20
RM138million, plus interest following an application for a=20
summary judgment. PIHB is appealing against the decision=20
and the hearing date has been fixed for July 13.


SPK-SENTOSA CORPORATION BHD: 1997 Results Announcement
------------------------------------------------------
After-tax profits of SPK-Sentosa Corporation Bhd (listed in=20
the KLSE), dropped 1,007% during 1997, from RM0.7million in=20
1996 to RM6.7million losses in 1997. Earnings per share=20
fell according by 1,068%, from RM0.156 in 1996 to a loss=20
per share of RM0.151


SIN KI PILING & ENGINEERING: Winding-up Petition
------------------------------------------------
Econpile (M) Sdn Bhd (petitioner) on 28/5/98 petitioned for=20
the winding-up of Sin Ki Piling & Engineering (M) Sdn Bhd=20
(respondent). Hearing was set on 15/7/98.


SPEM ENTERPRISE SDN BHD: Members' Voluntary Winding-up
------------------------------------------------------
The members of Spem Enterprise Sdn Bhd resolved on 8/6/98=20
to wind-up the company voluntarily. Creditors are given up=20
to 15/7/98 to submit their claims.


SUNDROP FRUIT JUICES BHD: Winding-up Petition
---------------------------------------------
Kuala Lumpur Glass Manufacturers Co. Sdn Bhd (petitioner)=20
on 30/3/98 petitioned for the winding-up of Sundrop Fruit=20
Juices Bhd (respondent). Hearing was set on 7/8/98.


T.S. MEWAH SDN BHD: Winding-up Petition
---------------------------------------
Glorykin Sdn Bhd (petitioner) on 15/4/98 petitioned for the=20
winding-up of T.S. Mewah Sdn Bhd (respondent). Hearing was=20
set on 15/7/98.


TIMBERMASTER INDUSTRIES BHD: Aborts Acquisition
-----------------------------------------------
Timbermaster Industries Bhd, listed in the KLSE, is=20
aborting the proposed acquisition of the entire stake in=20
Masaha Sdn Bhd and Cheraka Plantation (M) Sdn Bhd as it=20
could no longer raise funds for the transactions.


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
P H I L I P P I N E S=20
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

PHILIPPINE AIRLINES: To Resume Some Flights
-------------------------------------------
Asia Pulse reports June 15 Philippine Airlines (PAL) has=20
announced that it will resume regular flights to 14=20
domestic and four international points today, though on a=20
limited basis, even as a strike staged by its pilots' union=20
has severely affected its operations.

PAL said that it is currently processing applications for=20
pilot positions. It is building up its services "as it=20
adjusts to the difficult economic realities in the aviation=20
market with a leaner, more responsive organization."


VICTORIAS MILLING: Shareholders Oppose Strategic Partner
--------------------------------------------------------
Shareholders of beleaguered sugar giant Victorias Milling=20
Co. Inc. have opposed plans to surrender their preemptive=20
rights to give way to the entry of a strategic partner that=20
will acquire 51 percent of the company, according to RP=20
Business Digest of June 14.

Victorias president Manuel Ma=A4alac said in a comment filed=20
with the Securities and Exchange Commission that current=20
shareholders should be allowed to exercise their preemptive=20
rights before the competitive bidding of the shares giving=20
majority control.

"The purpose of a petition for suspension of payments is=20
not to take property from shareholders and hand the same=20
over to creditors. It is to allow the company to=20
rehabilitate itself (and), if possible, . . . stockholders=20
should not be compelled to surrender virtually all their
rights," Ma=A4alac said.

He stressed that while Victorias was willing to go along=20
with the rehabilitation plan submitted by the management=20
committee, the plan must reasonably allow the stockholders=20
to exercise their preemptive rights.

The management committee composed of Victorias's creditor=20
banks proposed for the bidding of 51 percent of Victorias=20
capital stock to bring in some P567 million in fresh funds=20
to bankroll its continued operations.

Other creditor-banks have expressed mixed reactions to the
rehabilitation plan submitted to the SEC by the management=20
committee led by Philippine Commercial International Bank.

Aside from the bidding, the rehabilitation plan calls for=20
the infusion of some P2 billion in fresh capital that will=20
come from the conversion of P1.5 billion worth of debt to=20
preferred shares of Victorias and the issuance of common=20
shares equivalent to 51-percent ownership through public=20
bidding.

The remaining debt of P4.13 billion after the debt-equity=20
conversion will be restructured over 15 years with the=20
interest rate on peso loans fixed at 10 percent a year and=20
dollar loans at 6 percent.

Liabilities of non-bank creditors which had been computed=20
at approximately P252 million and additional liabilities=20
arising from sugar inventory shortage estimated at P332=20
million will be paid over the next three years.

Victorias Milling fell under a debt burden of more than=20
P5.4 billion which was compounded by the fall in sugar=20
prices worldwide, overdiversification into non-allied=20
business, and partly on mismanagement.=20


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
S I N G A P O R E
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D



=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
T H A I L A N D=20
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

FINANCE ONE: Insider Trading Probe Into Thai Firms
--------------------------------------------------
Two executives and shareholders of Finance One and Union=20
Asia Pacific, once leading Thai Finance companies, are=20
under investigation by the Securities and Exchange=20
Commission for insider trading.  Commission spokeswoman=20
said the probe followed irregular trading activity in=20
shares of Finance One and Union Asia Finance before the=20
central bank announced plan to deal with their debt=20
problem.Finance One was close down in December with huge=20
debt of 39.7 billion baht (HK$7.2 billion) Union Asia=20
Finance was nationalized earlier this year. =20


HANTEX PLC: SET Extends 'SP' Sign on Listing
--------------------------------------------
Previously, the SET halted securities trading on Hantex for=20
not longer than one session, effective from the second=20
session of 12 June 1998 since there is information=20
concerning HTX's shareholder restructuring but the company=20
has not disclosed such information to the SET. The SET,=20
therefore, posted "SP" sign on its securities effective=20
from 15 June 1998.

The SET is to announce temporary suspension of securities=20
trading on Hantex, on which the signs "H" and then, "SP"=20
are posted.


MALEE SAMPRAN: Company's Rehabilitation Succeeding
--------------------------------------------------
A year after beginning an intensive rehabilitation, Malee=20
Sampran Plc has begun to see the fruits of its labour,=20
according to a profile in Bangkok Post of June 15.

Banchong Chittchang joined the company in 1995 to lead a=20
rescue mission for the financially ailing fruit-processing=20
company, which was established in 1964. The previous year,=20
Malee had lost more than 200 million baht. In 1995 it=20
continued to lose - 211.1 million baht on sales of 2.34=20
billion. Delisting from the SET loomed, as fixed assets had=20
plunged below 50% of paid-up capital.

Mr Banchong said the company had to solve two critical=20
problems at the same time. A team from Krungthai Thanakit=20
Finance and Securities was brought in to draft a=20
rehabilitation plan. At the same time, the company engaged=20
Wilkie Farr and Gallagher, an international law firm, to=20
deal with the anti-dumping case.

The rehabilitation programme was designed to raise more=20
capital to lubricate operations. Abico Holdings Plc=20
acquired 10 million shares or 41.68% from the Kulapiyavaja=20
family, founders of Malee. Registered capital rose from 250=20
million to 650 million baht.

But the key to Malee's re-emergence was market=20
diversification. It moved beyond its US stronghold, finding=20
new markets in Europe, Asia and at home. As a result, 60-
70% of sales now come from the domestic market.

The result has been two consecutive years in the black. In=20
1996 net profit was 232.9 million baht on sales of 3.58=20
billion. Last year sales edged up to 3.82 billion baht with=20
net profit of 220 million baht. In the first quarter of=20
this year, sales were 1.18 billion baht and net profit 93.8=20
million. The company also improved its financial structure,=20
reducing the debt-to-equity ratio from 5.31 in 1996 to 3.24=20
in 1997, with interest expenses pared from 155 million baht=20
in 1996 to 96 million last year. And on February 25, the=20
company was re-listed on the SET.


NORTH STAR: Placed in 'Rehabco' Sector by SET
---------------------------------------------
Effective from June 17, the Stock Exchange of Thailand=20
(SET) has placed North Star Public Company Limited in a=20
special sector called Companies Under Rehabilitation=20
sector, or REHABCO. This sector comprises either listed=20
companies facing the possibility of delisting according to=20
the SET's regulations or those firms which are in the=20
rehabilitation process. =20


UNION ASIA FINANCE: Insider Trading Probe Into Thai Firms
---------------------------------------------------------
Two executives and shareholders of Finance One and Union=20
Asia Pacific, once leading Thai Finance companies, are=20
under investigation by the Securities and Exchange=20
Commission for insider trading.  Commission spokeswoman=20
said the probe followed irregular trading activity in=20
shares of Finance One and Union Asia Finance before the=20
central bank announced plan to deal with their debt=20
problem.Finance One was close down in December with huge=20
debt of 39.7 billion baht (HK$7.2 billion) Union Asia=20
Finance was nationalized earlier this year. =20


S U B S C R I P T I O N   I N F O R M A T I O N=20

Troubled Company Reporter -- Asia Pacific is a daily=20
newsletter co-published by Bankruptcy Creditors' Service,=20
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,=20
DC USA.  Debra Brennan and Lexy Mueller, Editors.

Copyright 1998.  All rights reserved.  This material is=20
copyrighted and any commercial use, resale or publication=20
in any form (including e-mail forwarding, electronic re-
mailing and photocopying) is strictly prohibited without=20
prior written permission of the publishers.  Information=20
contained herein is obtained from sources believed to be=20
reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $875 per month=20
delivered via e-mail.  Additional e-mail subscriptions for=20
members of the same firm for the term of the initial=20
subscription or balance thereof are $25 each.  For=20
subscription information, contact Christopher Beard at=20
301/951-6400.

      * * * End of Transmission * * *=20