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             A S I A   P A C I F I C      

      Thursday, June 25, 1998, Vol. 1, No. 88

                    Headlines


C H I N A   &   H O N G   K O N G

BREWERY TAP III LTD: Companies Winding-up
CP POKPHAND: Company Eyes Extension on Transactions
CHINA VENTURETECH: Central Bank Closes Venturetech
LUCKILY INVESTMENTS: In Members' Voluntary Liquidation
PEARL ORIENTAL HOLDINGS: Property Developer Denies Woes

SENFIELD INVESTMENT LTD: Companies Winding-up
SOUNDWILL HOLDINGS: Soundwill Financial Position 'Is Sound'
TAK WING: Chief in Talks to Sell Stake
THEME INTERNATIONAL: Japanese Bank Seeks Theme Debt
WO KEE HONG: Results Announcement


I N D O N E S I A

PERUSAHAAN LISTRIK: Claims Losses with Suharto Kin


J A P A N  

LONG TERM CREDIT: Pledge Fails to Calm Investors
SANYO SECURITIES: To Liquidate Business


K O R E A

CHUNGBU LEASING: Ordered Closed by FSC
DAEDONG LEASING: Ordered Closed by FSC
DAEGU LEASING: Ordered Closed by FSC
DASAN METAL COMPANY: Starts Creditor Reconciliation
DONGHWA LEASING: Ordered Closed by FSC

DONGNAM LEASING: Ordered Closed by FSC
HANJIN GROUP: Reveals Reorganization Plans
KIA MOTORS: Kia Motors Disposal Plan
KOREA CENTRAL LEASING: Ordered Closed by FSC
KWANGGEUN LEASING: Ordered Closed by FSC

KYUNGIN LEASING: Ordered Closed by the FSC
SEOUL BANK LEASING: Ordered Closed by FSC


M A L A Y S I A

ISZAJAYA SDN BHD: Winding-up Petition
KURNIA NUSANTARA SDN BHD: Winding-up Petition
NORMS TRAFFIC AUTOMATION SDN BHD: Winding-up Petition
PROTON BHD: Projects Lower Profits
SANDA INDUSTRIES BHD: Announces Restructuring Plan

SLASH ELECTRONIC SDN BHD: Winding-up Petition
SYARIKAT PEMBINAAN FATIL SDN BHD: Winding-up Petition


P H I L I P P I N E S

PHILIPPINE AIRLINES: Deadline set for PAL reforms


T H A I L A N D

KRUNG THAI THANAKIT: KTT Seeks More Merger Cash
PHATRA THANAKIT: Placed on CreditWatch
THAI FARMERS BANK: Placed on CreditWatch


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

BREWERY TAP III LTD: Companies Winding-up
-----------------------------------------
A petition for the winding-up of Brewery Tap III Limited by
the High Court of HKSAR was on 28 May, 98, and is directed
to be heard before the Court on 15 July, 98.


CP POKPHAND: Company Eyes Extension on Transactions
---------------------------------------------------
A news summary on the SCMP of June 24 says that CP Pokphand
has applied to the stock exchange for an extension over the
despatch of a circular about certain connected
transactions. The issue relates to certain loans advanced
by the company's three mainland subsidiaries to Beijing
Dafa Chia Tai and Chia Tai Livestock company last year.


CHINA VENTURETECH: Central Bank Closes Venturetech
--------------------------------------------------
According to a Bloomberg article on the Hong Kong Standard
of June 24, The Bank of China says China Venturetech
Investment Corporation, which it ordered shut on Monday,
will repay all of its debts to foreigners and mainland
individuals. The central bank said that it will announce
later how other debt will be dealt with.

It said the investment company's securities business would
be allowed to continue under the management of China Guotai
Securities.

The central bank has set up a liquidation team to determine
the extent of the company's debts which are said to be as
big or bigger than Catic.

A deputy director of planning at the Industrial and
Commercial Bank of China, Tong Pin, said that Venturetech
will be taken over by a bank.

Venturetech, backed by the Science and Technology Ministry,
is the second investment company to go bust since January
1997, when Catic failed.

Analysts blamed the downfall of Venturetech on over
exposure to real estate investments that went sour when the
government imposed austerity measures in 1993 to cool the
economy.

Venturetech owns prime land near Beijing's main boulevard,
Chang'an Avenue, including office towers, a hotel and a
department store. It also owns 50% of International
Enterprises Investment, which in turn owns 40 per cent of
First Shanghai Investment, a securities firm listed in Hong
Kong. First Shanghai said yesterday it would not be
affected by Venturetech's bankruptcy.


LUCKILY INVESTMENTS: In Members' Voluntary Liquidation
------------------------------------------------------
The creditors of Luckily Investments Limited, which is
being wound up voluntarily, are required on or before July
24, 1998 to send in their debts or claims to Bharwani
Bhagwan Shivandas, the company liquidator.


PEARL ORIENTAL HOLDINGS: Property Developer Denies Woes
-------------------------------------------------------
According to the SCMP of June 24, troubled property
developer and financial services company Pearl Oriental
Holdings yesterday strenuously denies it was having
operational difficulties, saying there were no banks
recalling loans and the company did not need to increase
bank financing to raise capital.

The company's chairman said the company needed to lower its
borrowings and would do so by selling some of its property
assets. He said the company has received several offers for
the Pearl Oriental Centre in Wanchai, and is suing Sin Hua
Properties for defaulting on a purchase agreement for that
property last year. He said the company is also planning to
sell the Pearl Seaview Hotel in Yau Ma Tei.

The company is applying for leave from the courts to pursue
action against a decision by the stock exchange to block
its bid to set up a stock brokerage.

Pearl Oriental said that as of December 31, the company had
total liabilities of $1.72 billion, $969 million of which
are current liabilities. The company had $216 million in
cash and bank balances, while managing a turnover of only
$468.5 million last year.

The company claims it has loan receivables which can be
recouped this year, of $915 million held through subsidiary
Margaux Finance. Out of this, $425 million is loan to an
associated company.


SENFIELD INVESTMENT LTD: Companies Winding-up
---------------------------------------------
A petition for the winding-up of Senfield Investment
Limited by the High Court of HKSAR was on 10 June, 98, and
is directed to be heard before the Court on 8 July, 98.


SOUNDWILL HOLDINGS: Soundwill Financial Position 'Is Sound'
-----------------------------------------------------------
According to the Hong Kong Standard, property developer
Soundwill Holdings sought to dispel rumors about its
financial health, claiming stable income contributions from
the leasing and residential markets had left the company in
good shape.

Rumors surrounded the group's huge level of accumulated
short-term loans, which amounted to $1 billion by the end
of last year. Although more than half of the firm's short
term borrowings have been converted into long term loans
this year, the total still greatly exceeds the group's
projected income contributions for 1998.

Speaking after the firm's annual general meeting yesterday,
Soundwill chairman and managing director Grace Chan said
the group netted more than $200 million from the sale of
properties and could raise additional income of up to $60
million if all units could be sold in a forthcoming sale of
its residential project.

She also said the group's rental income would stay steady
at $76 million this year.

However, the total estimated return on the group's property
investment for the year would still fall short of its level
of debt.

High interest rates have sent the company's interest
expenses to surge by more than $100 million in 1997 and are
expected to add to the company's woes in 1998.

Mrs Chan, however, said this a just a short term phenomenon
and the company's stable income contributions from property
leases would have alleviated the interest expense burden to
some extent.

The group said it now had a low gearing ratio of about 40
to 50 per cent and total assets of $5 billion.


TAK WING: Chief in Talks to Sell Stake
--------------------------------------
The chairman of construction company Tak Wing Investment
Holdings said he was in talks with potential buyers to sell
his entire 47.5 per cent stake in the company.

The company is negotiating with six creditor banks over its
debts.

The group's bank borrowings at April 30 totalled about $351
million, most of which were secured by cash deposits or
pledges of properties.

Consolidated losses after taxation and minority interests
for last year amounted to $326.35 million, compared to a
profit of $26.42 million in 1996, while turnover dropped
from $695.11 million to $202.01 million.


THEME INTERNATIONAL: Japanese Bank Seeks Theme Debt
---------------------------------------------------
The SCMP of June 24 says that the financial woes of
clothing retailer Theme International Holdings deepened
further yesterday with creditor Dai-Ichi Kangyo Bank filing
a High Court writ on Monday seeking $15.57 million in
unpaid debts --- a principal of $15 million, interest of
$576,472 and damages. Dai-Ichi claimed Theme failed to
settle $15.23 million when it demanded immediate repayment
on March 18.

This triggered concern over the company's future as it has
yet to reach agreement with 18 bank creditors to freeze the
repayment of $216 million in debts.

The company's substantial shareholder China Everbright-IHD
Pacific launched a rescue package for Theme in April, which
involved providing it with an $80 million secured loan.
China Everbright will have an option to subscribe for a
maximum of 107 million new shares at 75 HK cents each,
exercisable within three years. On full exercise of the
option, China Everbright will hold about 32 per cent of
Theme's enlarged capital against 20 per cent.

According to the Hong Kong Standard, Theme was reported to
be in serious financial trouble in April, raising fears it
could be forced into liquidation.

The company, whose credit lines have been cut off, said
banks had demanded repayment of $216 million in loans.
Managing director Kenneth Lai said the company is
negotiating with banks to restructure its debts. The
company is negotiating with banks for a debt repayment
freeze for $400 million it owes.

The company said that on the basis of a standstill of the
payment of interest and principal due, the board is of the
opinion that the company will have sufficient working
capital for its day-to-day operations.

It said sufficient working capital was also based on the
reinstatement of unused banking facilities and the
availability of a loan facility granted by a subsidiary of
China Everbright. According to the article, Theme said
earlier this month that it would get an $80 million secured
loan from a wholly owned subsidiary of China Everbright to
solve its cash flow problems.

Theme shareholders have also approved a bailout plan which
would boost China Everbright's stake in the company to
almost a third.

According to the article, Dai-Ichi claims it gave the loan
to Theme as a short-term revolving credit facility.


WO KEE HONG: Results Announcement
---------------------------------
Wo Kee Hong, a Hong Kong listed company, announced its year
end result as at December 31, 97 which posted an operating
loss of HK378 million and a net loss of HK$214 million.


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

PERUSAHAAN LISTRIK: Claims Losses with Suharto Kin
--------------------------------------------------
Perusahaan Listrik Umum Negara (PLN), Indonesia`s state
electricity company said it incurred a 45 million rupiah
loss because of a supply contract pushed on it by a cousin
of former president Suharto. PLN president Djiteng Marsudi
told the House of Representataives that Sudwikatmono
(Suharto's cousin) forced PLN to buy electricity from his
company at too high a price. PLN lost a total 6.2 trillion
rupiah in the first quarter of this year, because of 5.6
trillion rupiah in foreign exchange losses.


=========
J A P A N  
=========

LONG TERM CREDIT: Pledge Fails to Calm Investors
------------------------------------------------
According to an Agence France-Presse article on the SCMP of
June 24, dealers warned that the struggling LTCB, which
bounced back on the stock market, is far from being rescued
and any rebound was likely to be short-lived. A French
brokerage said that further buying is not expected to
emerge in the near term.

Reports said that the bank, weighed down by heavy bad loans
and a sudden loss of investor confidence, is desperately
looking for a merger partner.

The bank said in March it had outstanding bad loans worth
1.37 trillion yen but analysts believe the real figure may
be higher.

If LTCB collapses, it would be Japan's biggest corporate
failure since World War II, larger than the fall of the
prestigious brokerage Yamaichi Securities which folded last
November.

Finance Minister Hikaru Matsunaga tried to reassure
doubters that the bank's daily operations are in a smooth
state and the ministry has not received any requests or a
report for a merger or support but some customers who
withdrew their cash said they did not buy the government's
argument.

Jiji Press said the Japanese government and the ruling
party agreed late on Monday to support the bank if
necessary. Earlier Prime Minister Ryutaro Hashimoto tried
to instill confidence in the bank.

A Chuo Securities broker said that if investors really see
LTCB positively, the share price would have risen more
sharply so that the shares would have not been able to
trade, but the issue was priced easily.

Ratings agencies are still considering cutting the bank's
ratings. Moody's Investors Service rates the bank's senior
debt at Baa3, one notch above junk bond status, and its
deposit rating is at Baa2.


SANYO SECURITIES: To Liquidate Business
---------------------------------------
Sanyo Securities Co. decided Wednesday to liquidate its
business, citing its inability to find a partner to help
reconstruct its finances, company sources told Asia Pulse
Wednesday.

Last November, the second-tier brokerage house applied for
protection from creditors under the Corporation
Rehabilitation Law.

The company will return all client assets on its own
initiative. The amount of such assets has dropped to some
400 billion yen from more than 2 trillion yen at the time
of the brokerage's collapse.

The Ministry of Finance has extended the brokerage's
business suspension period several times to give it time to
seek a benefactor, but to no avail.


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

CHUNGBU LEASING: Ordered Closed by FSC
--------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of Chungbu
Leasing, one of these companies.


DAEDONG LEASING: Ordered Closed by FSC
--------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of Daedong
Leasing, one of these companies.


DAEGU LEASING: Ordered Closed by FSC
------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of Daegu
Leasing, one of these companies.


DASAN METAL COMPANY: Starts Creditor Reconciliation
---------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that Dasan Metal Company started its creditor
reconciliation procedure. The address of the company is 23-
1 Noyou-1 dong, Kwangjin-gu, Seoul and the president is Mr.
Yoon Young-sang. The creditors have until August 14, 1998
to report their claims.


DONGHWA LEASING: Ordered Closed by FSC
--------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of Donghwa
Leasing, one of these companies.


DONGNAM LEASING: Ordered Closed by FSC
--------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of Dongnam
Leasing, one of these companies.


HANJIN GROUP: Reveals Reorganization Plans
------------------------------------------
South Korea's Hanjin Group released a plan Wednesday
designed to reduce its 23 affiliates into six to seven key
areas by the end of the year. Asia Pulse reports the four
broad areas of business will be overland, air and
marine distribution; shipbuilding, rolling stocks and
aircraft; infrastructure construction linked with airports,
harbors, roads and distribution bases and a financial
sector aimed at supporting transportation and distribution.

The group said that its debt ratio would be lowered to 240
percent by next year and to 190 percent by 2000. Assets
would be reevaluated and real estate sold to raise 10.2
trillion over the next five years.


KIA MOTORS: Kia Motors Disposal Plan
------------------------------------
The Korea Times published details of the Kia Motors
Corporation disposal plan outlined by both the government
and its creditors. Under the rough draft of the plan, the
corporation's capital is to be reduced 70 to 80 percent and
news issues amounting to 51 percent of all outstanding
shares are to be offered. Afterward, Kia is then to be put
up for sale through an open international bidding process,
possibly as early as this coming August. The company
offering the best conditions will be given the right to
take over Kia.


KOREA CENTRAL LEASING: Ordered Closed by FSC
--------------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of Korea
Central Leasing, one of these companies.


KWANGGEUN LEASING: Ordered Closed by FSC
----------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of
Kwanggeun Leasing, one of these companies.


KYUNGIN LEASING: Ordered Closed by the FSC
------------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of Kyungin
Leasing, one of these companies.


SEOUL BANK LEASING: Ordered Closed by FSC
-----------------------------------------
According to a report in the Korea Herald, 9 leasing
companies will face closure before the end of next month as
these companies' parent banks will refuse their
recapitalization. Financial sources said that the Financial
Supervisory Commission (FSC), Korea's newly created
financial watchdog agency, recommended disposing of Seoul
Bank Leasing, one of these companies.


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

ISZAJAYA SDN BHD: Winding-up Petition
-------------------------------------
AMDB Factoring Sdn Bhd (petitioner) on 22/5/98 made a
winding-up petition against Iszajaya Sdn Bhd (respondent).


KURNIA NUSANTARA SDN BHD: Winding-up Petition
---------------------------------------------
Service Master (M) Sdn Bhd (petitioner) on 18/5/98
petitioned for the winding-up of Kurnia Nusantara Sdn Bhd
(respondent).


NORMS TRAFFIC AUTOMATION SDN BHD: Winding-up Petition
-----------------------------------------------------
Bank Bumiputra Malaysia Bhd (petitioner) on 15/5/98
petitioned for the winding-up of Norms Traffic Automation
Sdn Bhd (respondent). The petition is directed to be heard
on 17/10/98.


PROTON BHD: Projects Lower Profits
----------------------------------
Singapore BusinessTimes shows a Bloomberg article on
Malaysian carmaker Proton Bhd, which is expected to report
lower profits for the first time in three years.

Proton is facing its first economic downturn since the
company was set up in 1985.

The carmaker is expected to post a 13 per cent slide in
profit to 644.7 million Malaysian ringgit (S$269 million),
or RM1.19 a share, for the year ended March 31, according
to the average estimate of five analysts polled by
Bloomberg News. Implied second-half earnings could fall 42
per cent to RM229.4 million from a year ago.

By contrast, Proton's fiscal 1997 profit doubled to RM741.5
million or RM1.38 a share.


SANDA INDUSTRIES BHD: Announces Restructuring Plan
--------------------------------------------------
Sanda Industries Bhd, which is listed in the KLSE,
announced its plans to undertake a corporate and financial
restucturing to reduce gearing and increase its capital,
possibly through new shareholders, a capital injection by
existing shareholders or bonds issues.

Sanda, which incurred losses for the four past consecutive
years, only made profits of RM5.7mil for the year 1997, due
to large gains in disposal of investments.


SLASH ELECTRONIC SDN BHD: Winding-up Petition
---------------------------------------------
Marco Corporation Sdn Bhd (petitioner) made a winding-up
petition against Slash Electronic Sdn Bhd (respondent) on
22/6/98.


SYARIKAT PEMBINAAN FATIL SDN BHD: Winding-up Petition
-----------------------------------------------------
Yoke Seng Sdn Bhd (petitioner) on 12/6/98 made a winding-up
petition against Syarikat Pembinaan Fatil Sdn Bhd
(respondent). The petition is directed to be heard on
25/9/98.


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

PHILIPPINE AIRLINES: Deadline set for PAL reforms
-------------------------------------------------
According to a news summary in the SCMP of June 24, a
creditor bank said yesterday that a rehabilitation program
for loss-making PAL should be in place by August.

A Bloomberg article says that Philippine regulators
appointed a committee to draft a rehabilitation plan for
PAL. The interim receivership committee will include four
PAL executives and a representative from the country's
largest accounting firm.

A PAL lawyer, Estelito Mendoza, said the principal purpose
of this is to bring about the rehabilitation of the
company.

The rehabilitation plan is to be submitted to the SEC
within 30 days.

Philippine National Bank president said that creditor banks
are confident that despite PAL's current financial
difficulties, all of their exposure to the country's flag
carrier will be fully satisfied over time. The bank, which
is the airline's largest domestic creditor and a minority
shareholder, said that the $80.2 million that PAL owes
the bank is up to date and secured with real estate,
mortgages and planes.

PAL's request for debt relief is by far the country's
largest since the Asian economic crisis erupted last July.

Mr Mendoza told the SEC hearing that PAL received an order
yesterday from United States Northern District Court in
California blocking any attempts by American creditors to
initiate foreclosure action.

An Agence France-Presse article on the Hong Kong Standard
reports on the same subject. According to this article, the
Philippine National Bank owns a 2.5 per cent stake in PAL.

The article also says that PAL advertised yesterday for 86
cockpit crew members after its striking pilots spurned a
management offer to take them back with reduced salaries.
The airline said in advertisements that it plans to hire 39
new captains for its Boeing 747-400s and 737-300s as well
as Airbus A330 and A320 aircraft, plus 28 first officers
and 19 second officers.


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

KRUNG THAI THANAKIT: KTT Seeks More Merger Cash
-----------------------------------------------
A news summary on the SCMP of June 24 says that state-owned
finance firm KTT would seek extra capital from the central
bank to complete its merger with seven failed finance
firms. KTT president said most of the capital would come
from the central bank's Financial Institutions Development
Fund, which would convert its loans to the firms into
equity in a new bank yet to be established and the
conversion terms would be based on the due diligence
results.


PHATRA THANAKIT: Placed on CreditWatch
--------------------------------------
International ratings agency Standard & Poors today placed
its BB longterm rating and its B+ subordinated debt rating
on Thai Farmers Bank Public Co Ltd (TFB) on CreditWatch
with negative implications, following the bank's
announcement of plans to acquire and restructure Phatra
Thanakit Public Co Ltd (PHATRA). TFBs short-term rating is
affirmed at B. At the same time, the BB-/B ratings of
PHATRA have been placed on CreditWatch with developing
implications, S&P said in a statement.


THAI FARMERS BANK: Placed on CreditWatch
----------------------------------------
International ratings agency Standard & Poors today placed
its BB longterm rating and its B+ subordinated debt rating
on Thai Farmers Bank Public Co Ltd (TFB) on CreditWatch
with negative implications, following the bank's
announcement of plans to acquire and restructure Phatra
Thanakit Public Co Ltd (PHATRA). TFBs short-term rating is
affirmed at B. At the same time, the BB-/B ratings of
PHATRA have been placed on CreditWatch with developing
implications, S&P said in a statement.


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
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