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             A S I A   P A C I F I C      

      Wednesday, June 24, 1998, Vol. 1, No. 87

                    Headlines


C H I N A   &   H O N G   K O N G

DICKSON CONCEPTS: Makes $204m Provision Amid Turmoil
HAINAN DEVELOPMENT BANK: Closed for Capital Inadequacy
KPS VIDEO: Cash-Only Rentals in Bid to Avert Bankruptcy
S MEGGA: Reveals Four-Way Acquisition Talks
WELL STANDARD ENGINEERING: Companies Winding-up


J A P A N  

JAPAN NATIONAL OIL: Affiliates Report Losses
LONG TERM CREDIT: LTCB in Line for Bridge Bank Aid
YAMAICHI SECURITIES: Sued by Tokio Marine to Recover Loans


K O R E A

CROWN BAKERY: Creditor Reconciliation Procedure Completed
KOREA LONG TERM CREDIT: Searches for Foreign Partners
KOREA TELECOM: Foreigners are Allowed Bigger Slice


M A L A Y S I A

ALBION INDUSTRIES SDN BHD: Voluntary Winding-up
BRIGHT PACKAGING INDUSTRY BHD: Results Announcement
HALIM SECURITIES: Restructuring Agreement
JOO SENG RUBBER CO. SDN BHD: Winding-up Petition
KANCHING REALTY SDN BHD: Winding-up Petition

KRISI MACDOW SDN BHD: Voluntary Winding-up
PANJI TIMOR SDN BHD: Winding-up Petition
RAKAN MUDA CORPORATION SDN BHD: Winding-up Petition
W.S. PLASTER (M) SDN BHD: Winding-up Petition
WING TIEK: Defaults on Loans, Interest Payments


P H I L I P P I N E S

PHILIPPINE AIRLINES: Extends Job Offer to Pilots


S I N G A P O R E

BUKIT SEMBAWANG: Announces 96% Drop in Earnings


T H A I L A N D

THAI-GERMAN PRODUCTS: SET Asks for Clarification


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

DICKSON CONCEPTS: Makes $204m Provision Amid Turmoil
----------------------------------------------------
Upmarket retailer Dickson Concepts International has been
hit with the full impact of the regional financial crisis,
reporting a plunge in net profit to $16.25 million this
year and a $204.38 million provision for its Asia
investments.

Chairman Dickson Poon said: "The group's operations in Hong
Kong faced difficult trading conditions, as consumer
spending slowed and retailers started deep markdowns at an
exceptionally early stage.

"As a result, margins were greatly affected."

During the period, provisions were made for the closure of
loss-making outlets around Asia, restructuring mainland
operations and devalued assets.

Mr Poon said the group's mainland wholesale division had
been relocated to Hong Kong, while "some" wholly owned
outlets had been converted into franchise stores.

Operating profit was almost halved to $341.53 million from
$635.03 million.

Despite this, the final dividend remained unchanged at 63
cents, making the full-year payout 93 cents, the same as
last year (excluding a six-cent special dividend in the
previous year).

Net profit for the year to March was not comparable to a
$1.34 billion net profit in 1997, which included a $901.14
million one-off gain from spinning off subsidiaries in
Europe.

The group's Paris-based retailing arm, ST Dupont, slipped
to a net loss, but London-based Harvey Nichols Group saw
profit growth while Hong Kong Seibu started to generate
profit.

Analysts were generally disappointed with the performance
and were stunned by the size of the one-off loss.

In spite of the detrimental impact of regional markets on
the group's performance, Dickson holds about $1 billion
cash on hand.

Mr Poon said Dickson was still interested in acquiring
United States-based bankrupt retailer Barney's, even though
Barney's creditors last month rejected Dickson's US$130
million offer.

The creditors planned to launch their own restructuring
proposal.


HAINAN DEVELOPMENT BANK: Closed for Capital Inadequacy
------------------------------------------------------
The Asian Wall Street Journal reported that China's central
bank (the People's Bank of China) closed down the Hainan
Development Bank for capital inadequacy.  Hainan reportedly
ran out of money and was unable to meet deposit demands.

According to the report, this appears to be the first tine
that the People's Bank of China has closed a bank that was
established primarily to take individual deposits and re-
lend to local development projects, which was the mandate
of the Hainan Development Bank.  The Hainan Development
Bank was set up in 1995.


KPS VIDEO: Cash-Only Rentals in Bid to Avert Bankruptcy
-------------------------------------------------------
According to the SCMP of June 23, the cash-strapped KPS
video chain, which has 39 megastores, is giving customers
until the end of next month to use or convert their rental
coupons, before a cash-only rental system is introduced.

Coupon holders will not get their deposit back. The company
is offering a free blank video tape for every 18 coupon
rentals and has promised a grace period of up to four
months for those with large numbers of coupons. Customers
also can use coupons to buy products at the rate of $25 for
two coupons on sales over $100. The ensuing stampede would
leave little choice for members.

From August 1, video rentals will cost non members between
$20 and $25 each, while members will receive a 20 per cent
discount, still more than the average price for a coupon.

369 complaints involving 24,465 coupons were received by
the Consumer Council up to 5 pm yesterday. Complainants are
holding coupons valued at $244,000, with one holding 226
coupons. A Consumer Council survey has estimated that about
$170 million is being held in video coupons.

KPS managing director said the only other legal way to rid
KPS of its paper debt is to declare bankruptcy.

A customer said that it's wrong that KPS had run attractive
coupon offers as recently as a month ago. Consumer Council
chief said the company might have tried to shore up against
impending bankruptcy with the promotion. A consumer council
spokesman said customers had a right to complain to the
council over the change in terms and conditions of KPS
membership, the fee for which is $150 a year. He also
suggested that customers form a group to apply for
assistance under the Consumer Legal Action Fund if they
wanted to take the issue further.

The company vowed not to close stores and hopes to lessen
the blow by buying fewer new releases and cutting titles.


S MEGGA: Reveals Four-Way Acquisition Talks
-------------------------------------------
The SCMP of June 23 shows a news summary which says that S
Megga International Holdings, suspended from trading since
November, yesterday said it was in talks with three parties
interested in the company. The parties could acquire all or
part of the company's assets in connection with its
financial restructuring and were conducting due diligence
on it, expected to be finished by the end of the month. S
Megga expected an agreement with one or more of the parties
next month.


WELL STANDARD ENGINEERING: Companies Winding-up
-----------------------------------------------
The Hong Kong Standard of June 23 shows a notice which says
that a petition was presented to the High Court on June 12
by Tang Chi Tat for the winding up of Well Standard
Engineering Limited and that the petition was directed to
be heard before the court at 11:00 am on July 15.


=========
J A P A N  
=========

JAPAN NATIONAL OIL: Affiliates Report Losses
--------------------------------------------
Nearly 90% of Japan National Oil Corp. affiliates are
saddled with accumulated losses, says the Ministry of
International Trade and Industry, which obtained financial
reports of the 115 affiliates. Of 115 oil development
companies in which Japan National Oil Corp. owns a 20% or
greater stake, 102 posted accumulated losses as of March
31, shows a MITI report The Nihon Keizai Shimbun obtained
Monday. The public corporation's credits to those  
companies, totaling over 1.42 trillion yen, are deemed in
danger of turning unrecoverable.

Moreover, the 10 in which Japan National Oil owns its
biggest stakes, such as Japan Oil Development Corp., expect
their accumulated losses to increase by about 15% by fiscal
2003. The oil firm's financial troubles may force the
government to use public funds to dispose of the losses,
analysts say.

MITI chief Mitsuo Horiuchi is planning to make all the
deficit-ridden subsidiaries subject to a liquidation plan.
Horiuchi said he expects the corporation to write off more
than 1 trillion yen because of the extreme difficulty in
recovering its credits to the troubled affiliates.


LONG TERM CREDIT: LTCB in Line for Bridge Bank Aid
--------------------------------------------------
According to the SCMP of June 23, LTCB has emerged as the
first candidate liable to find its debts controlled by a
state-owned bridge bank after its stock price dived
spectacularly due to its bad debt crisis.

Japanese prime minister and Liberal Democratic Party (LDP)
secretary general yesterday said Japan would set up a
bridge bank to take over the debts of failed financial
institutions and provide new loans to distressed borrowers
by July 8.

Following fears that LTCB might become insolvent after its
stock price plunge of 45 per cent, analysts believed the
only future for the bank lies in its being a guinea pig for
the bridge bank scheme.

LDP secretary general Mr Kato said the crucial meeting to
determine the shape of this bank probably will be on July
2, with the final conclusion reached by July 8.

The Bank of Japan stepped in with one trillion yen in
liquidity in an effort to keep LTCB afloat until its
affairs were sorted out.

Officials from the Ministry of Finance and the one-day old
Financial Supervisory Agency spent an unsuccessful weekend
seeking a merger partner for LTCB. Among the banks
approached were Dai-Ichi Kangyo Bank, Daiwa Bank and Swiss
Bank Corp.

Reports said that Dai-Ichi and Daiwa have already rejected
the idea. Swiss Bank Corp, which will merge with the Union
Bank of Switzerland next week, is unlikely to create a
union with LTCB but is well positioned to pick up the
pieces. The two companies have formed a 1,000 person 50-50
joint venture designed to take over LTCB's investment
banking functions. A Swiss Bank official said his company
had boosted their client list in Japan from 300 to 1000.

An LTCB official said the bank was exploring the
possibility of having a bridge bank take over its bad debts
before merging with another financial institution.

Japan has not resolved the issue about the fate of the
shareholders of failed institutions and the fate of their
borrowers. Mr Kato promised the new state-owned bank would
only lend to the good borrowers of failed institutions but
details of how such borrowers would be selected were
unknown.

An official at the Bank of Tokyo-Mitsubishi said that truly
viable companies were able to find new lenders.

Many in Japan, including officials from the construction
industry, assumed the LDP would use the bridge bank to
rescue troubled public works contractors and other special
interests.

A bailout of the shareholders of failed financial
institutions has not been ruled out, but analysts warned
that this could create a moral hazard and artificially
maintain over-capacity in the industry.

The newly set up Financial Supervision Agency promised to
begin inspecting key banks to see if their announced non-
performing debt totals tallied with their actual accounts.
In particular, loans classified as potentially troublesome
would be examined to see if they should instead be written
off.

According to Agence France-Presse articles in the Hong Kong
Standard, reports said that Japan's leaders agreed
yesterday to hammer out by July 8 the final details for a
bridging bank to take over operations of failed banks.

After talking about the bank's loss, debts and stock
prices, the article says that the share price is crucial to
the bank because Japanese regulations allow banks to use
unrealised gains from equity holdings to shore up their
capital.


YAMAICHI SECURITIES: Sued by Tokio Marine to Recover Loans
----------------------------------------------------------
Tokio Marine & Fire Insurance Co. is suing failed Yamaichi
Securities Co. to recover 2 billion yen in subordinated
loans, becoming the first insurer to sue the brokerage to
recover loans, Nikkei English News reported. In its suit,
Tokio Marine claims its debt should be treated like that of
Yamaichi's other creditors according to the terms of their
contract, NEN said.


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

CROWN BAKERY: Creditor Reconciliation Procedure Completed
---------------------------------------------------------
The Seoul District Court advertised in Korean language
Maeil Kyungje that the creditor reconciliation procedure
for the Crown Bakery Company (president, Mr. Yoon Yong-dal)
was completed on June 19, 1998.


KOREA LONG TERM CREDIT: Searches for Foreign Partners
-----------------------------------------------------
A Bloomberg report on the SCMP of June 23 says that Korea
Long Term Credit Bank and the International Finance Corp
(IFC) are seeking foreign partners to raise more than
US$100 million to bolster the former's finances.

The move was disclosed as the IFC, the private lending arm
of the World Bank, signed an agreement to buy $25 million
of the Korean bank's convertible bonds. The investment will
increase the IFC's stake in the bank to 8.3 per cent from
1.53 per cent if it converts the bonds into shares before
2004, which would make IFC its biggest shareholder.

The bank is engaged in talks with several foreign banks
about a capital injection. Chairman of the Korean Long Term
Credit Bank said that advanced banks will be allowed in the
management of the bank to improve the bank's credit as well
as finances. Another official said a new foreign
partnership might materialize in the next two or three
months.

Korea Long Term Credit Bank, with 477.4 billion won of
capital, said the IFC investment would improve its capital
strength, with the BIS ratio, a standard set by Bank for
International Settlements, rising to 9.54 per cent from
9.36 per cent at the end of March.

It also said it would raise the proportion of its retail
banking business to 50 per cent from 20 per cent in the
next five years.

The IFC said it would consider additional investment into
the Korean bank once a new partner could be found. It also
said further investments in Korea such as investment in
Korea Long Term Bank will be considered. The IFC planned to
invest as much as $250 million in Korean financial
institutions, setting aside millions more for manufacturing
companies such as Honam Petrochemical Corp, a subsidiary of
Lotte Group, and Dae Chang Co, the country's biggest iron
bar manufacturer.

The group will disclose two more investments today.


KOREA TELECOM: Foreigners are Allowed Bigger Slice
--------------------------------------------------
According to an Agence France-Presse article in the Hong
Kong Standard of June 23, officials say that South Korea
plans to raise the foreign shareholding ceiling in state-
run Korea Telecom Corp by 10 per cent to 33 per cent within
this year as part of a wide-ranging privatisation
initiative.

Single shareholding limits in private wired and wireless
telecoms service providers, which are currently set at 10
and 33 per cent each will be abolished by the end of the
year.

The government also plans to raise foreign aggregate
shareholding limits in private telecoms firms from the
current 33 per cent to 49 per cent.


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

ALBION INDUSTRIES SDN BHD: Voluntary Winding-up
-----------------------------------------------
Albion Industries Sdn Bhd on 12/6/98 resolved to wind-up
the company voluntarily. Creditors of the company are
requested to submit their claims by 22/7/98.


BRIGHT PACKAGING INDUSTRY BHD: Results Announcement
----------------------------------------------------
Bright Packaging Industry Bhd (listed in the KLSE),
reported a 516.9% drop in post-tax profit for the 6 months
ended 28/2/98, from RM0.777mil in 28/2/97 to a loss of
RM3.239mil. EPS of the company slipped 102.1% from RM0.07
to loss of RM0.15 during the same periods. The share price
fell from RM14.30 on 19/6/97 to RM1.00 on 19/6/98.


HALIM SECURITIES: Restructuring Agreement
-----------------------------------------
Uniphoenix Corp Bhd (listed in KLSE) and its 80% owned
subsidiary Halim Securities Sdn Bhd have signed an
agreement with Phillip Brokerage Pte Ltd of Singapore to
restructure certain assets and liabilities of Halim
Securities.


JOO SENG RUBBER CO. SDN BHD: Winding-up Petition
------------------------------------------------
Sime Bank Bhd (petitioner) on 9/6/98 petitioned for the
winding-up of Joo Seng Rubber Co. Sdn Bhd (respondent).


KANCHING REALTY SDN BHD: Winding-up Petition
--------------------------------------------
Haw Ah Bee Construction Sdn Bhd (petitioner) on 27/5/98
petitioned for the winding-up of Kanching Realty Sdn Bhd
(respondent). The petition is directed to be heard on
1/9/98.


KRISI MACDOW SDN BHD: Voluntary Winding-up
------------------------------------------
The members of Krisi MacDow Sdn Bhd on 18/6/98 resolved to
wind-up the company voluntarily.


PANJI TIMOR SDN BHD: Winding-up Petition
----------------------------------------
Deraya Corporation Sdn Bhd (petitioner) petitioned for the
winding-up of Panji Timor Sdn Bhd (respondent). The
petition is directed to be heard on 14/8/98.


RAKAN MUDA CORPORATION SDN BHD: Winding-up Petition
---------------------------------------------------
Starbell Sdn Bhd (petitioner) on 24/2/98 petitioned the
winding-up of Rakan Muda Corporation Sdn Bhd (respondent).
The petition is directed to be heard on 24/7/98.


W.S. PLASTER (M) SDN BHD: Winding-up Petition
---------------------------------------------
Maruichi Malaysia Steel Tube Bhd (petitioner, listed on the
KLSE) on 8/4/98 petitioned for the winding-up of W. S.
Plaster (M) Sdn Bhd (respondent). The Petition is directed
to be heard on 13/7/98.


WING TIEK: Defaults on Loans, Interest Payments
-----------------------------------------------
A news summary in the SCMP of June 23 says that Malaysian
steelmaker Wing Tiek Holdings, controlled by businessman
Joseph Chong, became one of the country's many companies
unable to repay debt, when it said it defaulted on its
loans and interest payment of M$381 million. The company
said that the default was mainly due to the suspension and
withdrawal of the credit facilities given by banks and
finance companies. The company also said it failed to
comply with certain terms of its guarantee facility
concerning its M$30 million bank-guaranteed bonds, which
may result in the bonds being due and immediately payable.


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

PHILIPPINE AIRLINES: Extends Job Offer to Pilots
------------------------------------------------
An article on the SCMP of June 23 says that the chairman of
PAL has offered to take striking pilots back if they agree
to a 20 per cent pay cut. The airline is also planning to
hire laid-off Indonesian pilots to replace striking pilots
and has sent officials to Jakarta to screen hundreds of
pilots laid off by Indonesian carriers.

PAL senior vice president said that PAL had 83 pilots,
including some union members who had returned to work but
needed 200 to handle its scaled down operations following
the 18-day pilots' strike.

The ground crew is expected to strike next month after the
airline decided to fire a further 5,000 ground crew and
cabin attendants, representing a 37 per cent of its
workforce.

Major shareholder Lucio Tan wants the ground crew and the
unions to take a 20 per cent salary cut and agree to
suspend for five years their collective bargaining
agreement with management, which spells out their salary
structure and other benefits. He also vowed to close down
the airline next week if the unions spurn his offer.

Union spokesman described the reported offer as a media
blitz meant only for public consumption. The unions had yet
to receive a formal offer.


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

BUKIT SEMBAWANG: Announces 96% Drop in Earnings
-----------------------------------------------
Singapore BusinessTimes reports June 23 property counter
Bukit Sembawang Estates yesterday announced a whopping 96
per cent plunge in its earnings for the year ended March
31, 1998. Net profit was only $1.33 million -- barely
enough to buy a choice condominium in a prime area. In the
previous financial year, the company posted after-tax
earnings of $33.12 million. Turnover for the year crashed
61.7 per cent to $26.71 million compared with $69.73
million previously.  Pre-tax profit dropped 83.8 per cent
to just $7.23 million, compared with $44.69 million a year
ago.


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

THAI-GERMAN PRODUCTS: SET Asks for Clarification
------------------------------------------------
The Stock Exchange of Thailand (SET) has asked Thai-German
Products Public Company Limited to provide additional
information to clarify its 1997 financial statements.        
TGPRO submitted its audited financial statements for the
period ending 31 December 1997 to the SET on 3 March 1998.  
To give the company's shareholders and general investors
more information to analyze its financial status and
business operations, the SET has ordered TGPRO to make
additional disclosures on losses from lost inventories
amounting to Bt 152.98 million and Bt 135.02 million and
bad debts and allowances for doubtful accounts amounting
to Bt 213.07 million as stated in a note to financial
statements 21 that the company has made allowances for
doubtful debts from two affiliated companies amounting to
Bt 167.42 million.

The SET has also asked for information regarding
differences in transactions with related parties in 1996
as shown in the of the 1996 annual financial statement
audited on 12 March 1997 and the 1997 annual financial
statement audited 16 February 1998. 1996 comparative data  
shows the important differences in the trade accounts
receivable, trade accounts payable and sales.  
      
TGPRO's auditor has commented on the deficiency of the
company's internal controls in the report of additional
information . Therefore, the company establish a  
restructuring plan for its internal organization
and accounting system including a time table by 30
September 1998 and submit this to the SET by 15 July 1998.

The auditor will comment on these plans by 30 July 1998,
and report on any improvement by 30 September 1998.


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

Troubled Company Reporter -- Asia Pacific is a daily
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