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T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Friday, June 26, 1998, Vol. 1, No. 89

                    Headlines


C H I N A   &   H O N G   K O N G

CHINESE ESTATE: Reports Debt Reductions on Portfolio
GUIDE GEM COMPANY LIMITED: Winding-up Petition
KPS VIDEO EXPRESS: Founder Forced Out After Huge Expansion
LIO FUNG ENTERPRISES LIMITED: Winding-up Notice
PAK MEI JEWELLERY: Winding-up Petition
RUN BRIGHT LIMITED: Winding-up Petition
SHENG KEE BUILDING: Winding-up Petition
SIMON & TOM ENGINEERING: Winding-up Petition
WING ON: Ailing Wing On Looks to Trim Losses


J A P A N  

DAIEI INC: Debt Rating Lowered
LONG TERM CREDIT: Shares Fall on 'Bridge Bank' Concerns
NISSAN MOTOR: Shares Fall on Debt Concerns
YAMAICHI SECURITIES: Insurers File Suit Against Yamaichi


K O R E A

HANBO ENGINEERING: Application for Receivership Accepted
KWANSU COMPANY: Creditor Reconciliation Procedure Started


M A L A Y S I A

MILAN AUTO (M) SDN BHD: Writ of Distress
PLANTATION & DEVELOPMENT: Defaults Payments to Banks       
RENONG BHD: Reduces Stake in Camerlin
SCK GROUP BHD: Court Sets Aside Receivership Order


P H I L I P P I N E S

EYCO GROUP: SEC Forms Committee for Appliance Maker
PHILIPPINE AIRLINES: PAL May Cancel Aircraft Purchases


T H A I L A N D

KRUNGTHAI THANAKIT: Progress Report on Finance Companies
PREMIER ENTERPRISE: Appoints a Financial Advisor                              

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

CHINESE ESTATE: Reports Debt Reductions on Portfolio
----------------------------------------------------
Chinese Estates Holdings, a Hong Kong listed property
developer, said it is whittling down its debt level this
year to HK$3 billion and has substantially reduced its
investment in securities after heavy losses arising from
its securities portfolio as a result of the regional
financial turmoil.

The company said its debt is now standing at HK$4 billion
and intends to cut this by about HK$1 billion before year
end. During 1997, the company posted a loss of HK$2.261
billion, due largely to its securities portfolio, following
the crash of the Hong Kong stock market in October 1997.


GUIDE GEM COMPANY LIMITED: Winding-up Petition
----------------------------------------------
The Hong Kong Standard of June 25 shows a notice which says
that a petition for the winding up of the above named
company was presented to the High Court on June 5 by Ng Yu
Nog, and that the petition was directed to be heard before
the court at 11:00 am on July 15.


KPS VIDEO EXPRESS: Founder Forced Out After Huge Expansion
----------------------------------------------------------
According to the SCMP of June 25, the new management of KPS
disclosed yesterday that the founder of the troubled KPS
Video Express chain and its chief executive were forced to
resign after massive expansion crippled the company.

Garrie Roman, who founded the chain 17 years ago and sold
his stake in 1996, and his wife Kitty were asked to leave
by the board in November, after Roman's decision in June to
fire chief executive officer Rodney Miles, a former
chairman of the Retail Management Association.

In the six months after Mr Miles' appointment in January
last year, proceeds from coupon sales were used to open 12
more stores in an expansion that the new management said
was never properly analysed.

Dennis Smith, managing director of ChinaVest, controlling
shareholder of KPS, said in October 1996 that retail
operations would expand in Asia to more than 1,000 stores
by 2005 with a $200 million investment.

Managing director Eddie Wang Yu-chang said the company lost
a lot of money from the expansion that was not properly
analysed.  Four months later Rodney Miles left the company.


LIO FUNG ENTERPRISES LIMITED: Winding-up Notice
-----------------------------------------------
The Hong Kong Standard of June 25 shows a notice asking
creditors of Lio Fung Enterprises Limited, which is being
voluntarily wound up, to send in their claims to the
liquidators before July 10.


PAK MEI JEWELLERY: Winding-up Petition
--------------------------------------
The Hong Kong Standard of June 25 shows a notice which says
that a petition for the winding up of Pak Mei Jewellery and
Metal Factory Limited was presented to the High Court on
June 19 by Sun Vai Peng, and that the petition was
directed to be heard before the court at 9:30 am on July
22.


RUN BRIGHT LIMITED: Winding-up Petition
---------------------------------------
The Hong Kong Standard of June 25 shows a notice which says
that a petition for the winding up Run Bright Limited was
presented to the High Court on May 29 by Ngai Yu Kit, and
that the petition was directed to be heard before the court
at 9:30 am on July 15.


SHENG KEE BUILDING: Winding-up Petition
---------------------------------------
The Hong Kong Standard of June 25 shows a notice which says
that a petition for the winding up of Sheng Kee (Building
Materials) Company Limited was presented to the High Court
on June 12 by Chan Chun Man, and that the petition was
directed to be heard before the court at 11:00 am on July
15.


SIMON & TOM ENGINEERING: Winding-up Petition
--------------------------------------------
The Hong Kong Standard of June 25 shows a notice which says
that a petition was presented to the High Court by China
International Water & Electric Corporation for the winding
up Simon & Tom Engineering Specialist Limited, and that the
petition was directed to be heard before the court at 9:30
am on July 8.


WING ON: Ailing Wing On Looks to Trim Losses
--------------------------------------------
According to the SCMP of June 25, Wing On Department Store
chain is negotiating with landlords for rent cuts and is
making possible further staff reductions.

The company's department store unit saw operating losses
more than double to $234.13 million in the year to
December, from $101.03 million in 1996, as a result of the
retail market slump.

The company has almost halved its staff members in Hong
Kong in the past 18 months to about 1,700.

Executive director Mark Kwok Chi-yat said after the
company's annual general meeting yesterday that if the
slump intensifies, the company may be forced to cut labor
costs, which is the fastest way to reduce operating cost.

Recently landlords have softened their stance and are
willing to sit down and listen.

Apart from its retail business losses, Wing On made a
$113.78 million provision for securities investments. The
securities investments were confined to blue chips in the
Hang Seng Index and the portfolio was valued at about $100
million at the end of last year. The company will
continue to invest in stocks, but in blue chips only.


According to the Hong Kong Standard, the downturn in the
retail sector forced Wing On to fire about 270 staff in
May. Since most of the company's stores are on a long lease
commitment, it is only in staff reduction that the company
can achieve cost adjustment controls.

Among Wing On's nine stores, only 2 are owned.

Mr Kwok said the company will acquire another store when
the property development in Yau Ma Tei is completed in June
of next year.


=========
J A P A N  
=========

DAIEI INC: Debt Rating Lowered
------------------------------
Bloomberg reports Japan Rating and Investment Information
Inc. cut its rating for retailer Daiei Inc.'s debt amid
concern about competition and the slowdown in consumer
spending.


LONG TERM CREDIT: Shares Fall on 'Bridge Bank' Concerns
-------------------------------------------------------
Bloomberg reports shares of Long-Term Credit Bank of Japan
Ltd. (8303 JP ) fell 12 yen to 58 yen, after falling as
much as 20 yen earlier to 50 yen, a record low, amid
concern about the bank's financial viability. There is
growing concern that a plan for a "bridge bank" to take
over assets and clients of collapsed lenders may not solve
the problems of the banking system.

Kyodo News reports Fitch IBCA, a major rating agency, said
Monday it has placed its long-, short-term and individual
ratings of the Long-Term Credit Bank of Japan (LTCB) under
review for possible downgrade. The ratings of LTCB, one of
the three long-term credit banks in Japan, are  currently
long-term BBB+, short-term F2 and individual D/E.


NISSAN MOTOR: Shares Fall on Debt Concerns
------------------------------------------
Bloomberg reports Nissan Motor Co. (7201 JP ) fell 6 yen to
409 amid concern about the company's debts. President
Yoshikazu Hanawa told shareholders at their annual meeting
that he aims to more than double the company's share price
to 1,000 yen within two years.


YAMAICHI SECURITIES: Insurers File Suit Against Yamaichi
--------------------------------------------------------
An Agence France-Presse article in the SCMP of June 25 says
that according to a Yasuda Mutual Life Insurance spokesman,
13 Japanese life and non-life insurers yesterday jointly
filed a lawsuit against Yamaichi Securities, seeking the
repayment of subordinated loans amounting to 41 billion yen
from the brokerage.

The spokesman said that Yamaichi owed Yasuda 10 billion yen
in subordinated loans, the largest single amount owed to
the 13 insurers.

He also said that when Yasuda made a contract with Yamaichi
on the subordinated loans last spring, the brokerage had
already hidden its losses and Yasuda considered their act
as fraud.

Yamaichi refused to comment.

Yamaichi collapsed on November 24 with hidden debts of more
than 200 billion yen. It closed down on March 31, but
client assets are being returned, and it is selling
unlisted securities. It will hold a shareholders' meeting
tomorrow to seek approval to liquidate.

In its final earnings report on June 1, Yamaichi said debts
exceeded assets by US$162 million.


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

HANBO ENGINEERING: Application for Receivership Accepted
--------------------------------------------------------
According to an official from the Hanbo Engineering &
Construction Company cited in the Korea Times, a court has
accepted the firm's application for receivership with the
overwhelming support of its creditors. Under the program,
Hanbo will be protected by the court for a period of 14
years. Most of Hanbo's debts will be deferred during this
time. Hanbo's name will also be reverted to is former
identity of Yuwon Construction.


KWANSU COMPANY: Creditor Reconciliation Procedure Started
---------------------------------------------------------
The Suwon District Court advertised in the Korean language
Maeil Kyungje that Kwansu Company started its creditor
reconciliation procedure. The company's address is 372
Hyunam-ri, Puknae-myun, Yeoju-gun, Kyunggi-do and the
president is Mr. Park Heung-chan. The creditors have until
July 13, 1998 to report their claims.


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

MILAN AUTO (M) SDN BHD: Writ of Distress
----------------------------------------
A Writ of Distress was issued on 8/6/98 by the bailiff of
Jonas Motor Credit Sdn Bhd (plaintiff), against Milan Auto
(M) Sdb Bhd (defendant), to supervise and sell the property
of the defendant.


PLANTATION & DEVELOPMENT: Defaults Payments to Banks       
----------------------------------------------------
Plantation & Development (Malaysia) Bhd and several of its
subsidiaries have defaulted in payments amounting to over
RM34 million as at June 17, inclusive of principal sums and
interest, to several financial institutions, reports the
New Straits Times.

The company cited tight liquidity due to financial support
given to subsidiaries, steps taken for cashflow management
purposes and non-payment by clients as the main reasons for
the default. The payments were for various facilities like
term loans, bridging loans, short-term loans, revolving
credit facility, overdrafts and revolving underwriting
facility.


RENONG BHD: Reduces Stake in Camerlin
-------------------------------------
Renong Bhd's (listed in the KLSE) wholly owned Fleet Group
Sdn Bhd sold 20.59million Camerlin Group Bhd (listed in the
KLSE) shares last week, thus reducing its holdings from
11.12% to 3.38%. Based on the closing price of RM2.24 last
Wednesday, Renong would have raised RM46.1mil.

Reason for the sale and use of proceeds were not disclosed,
but analysts suspect that proceeds may be used in the
restructuring exercise to reduce gearing. Renong has debts
of more than RM7bil while its major unit United Engineers
Malaysia Bhd (listed in the KLSE) has over RM10bil in
debts.


SCK GROUP BHD: Court Sets Aside Receivership Order
--------------------------------------------------
SCK Group Bhd, an established interior design company
listed in the KLSE, on June 19 managed to get the High
Court to set aside a receivership order placed on them on
April 11.

The company now plans to take immediate steps to
restructure and inject assets (possibly in excess of
RM200mil) to generate immediate cash flow. The asset
injection may raise the share capital from RM19.8mil to
RM200mil. As at 31/3/97, SCK Group suffers a negative
shareholders' funds of over RM2mil.

The asset injection is expected to boost annual earnings by
RM20mil.

The CEO of SCK Group is also concerned over the tarnished
image of the company brought upon by a legal suit, which
caused the loss of some contracts.


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

EYCO GROUP: SEC Forms Committee for Appliance Maker
---------------------------------------------------
The Securities and Exchange Commission (SEC) finally
created yesterday the management committee to oversee the
rehabilitation of the EYCO group of companies.
BusinessWorld reports this occurred after a temporary
restraining order (TRO) issued by the Supreme Court barring
the appliance maker and the SEC from going ahead with the
rehabilitation plan for the cash-strapped firm was lifted.

The company's petition for the creation of a management
committee has been stalled in the last six months due to
opposition lodged by the Union Bank of the Philipines, one
of EYCO's creditor banks.

EYCO counsel said a three-month delay alone would cost the
company 270 million Philippine pesos (PhP) in accrued
interest charges since the firm accumulates PhP3 million in
interest charges a day.

Also yesterday, the SEC denied the petition of Union Bank
to dismiss EYCO's petition for debt relief. The SEC gave
the management committee 30 days to review the
rehabilitation plan earlier submitted by EYCO. The plan
needs to be approved by the SEC before implementation.


PHILIPPINE AIRLINES: PAL May Cancel Aircraft Purchases
------------------------------------------------------
An Agence France-Presse article on the SCMP of June 25 says
that strike hit PAL is in talks with Airbus Industrie and
Boeing about cancelling US$780 million worth of jet
purchases.

PAL senior vice president Jaime Bautista said Airbus
representatives were in Manila last week to discuss the
possibility of terminating the purchase agreement with PAL
for 8 A320-200 jets worth $300 million. PAL was seeking a
return of a more than $60 million down payment and to
avoid penalties.

Similar talks were scheduled with Boeing for three 747-400s
and the United States manufacturer had declared PAL in
default on June 2.

Mr Bautista cited that the three week old pilots' strike
had left most of its 54-strong aircraft idle, for which it
is paying $29 million a month in fleet costs alone.

Under a rehabilitation plan PAL filed with the Securities
and Exchange Commission last week, PAL would retain just 14
aircraft, including 11 it owns. It would sell 13 other
planes and cancel the lease or subleasing of 27 others.

The airline also plans to file a petition with European
courts to prevent creditors from foreclosing on its assets.


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

KRUNGTHAI THANAKIT: Progress Report on Finance Companies
--------------------------------------------------------
As per the Bank of Thailand's announcement dated May 18,
1998, Krungthai Thanakit (KTT) has been assigned to jointly
manage the seven finance companies alongside Bank of
Thailand officials, through the newly appointed board of
directors. KTT will continue to manage the activities of
the seven finance companies until the consolidation has
been finalized through the assets purchase and liabilities
assumption (commonly known as the P & A method) by KTT. The
P & A exercise will be conducted based on due diligence
results. Deloitte Touche Tohmatsu Jaiyos and Coopers &
Lybrand have been chosen to conduct 100% due diligence.

All seven finance companies have become state-owned with
the Financial Institutions Development Fund (FIDF) now
holding 99.9% of all seven companies' shares.

KTT will raise additional capital for the purchase of
assets and  assumption of liabilities.

To facilitate the transformation of KTT into the new bank,
Bank of America (BoA) has been appointed to advise KTT on
the conversion program. BoA will continue the advisory and
training services which they had already rendered since
last year. The new phase, focusing on business strategies,
organizational structure, products and operations,
commenced in May 1998.

In conjunction with the Bank of Thailand, KTT's management  
has begun discussions with creditors and confirmed the
Authorities's intention to stand behind the new finance
companies' obligations. Once KTT has completed the P & A
exercise and transformed into a commercial bank, the
existing loans will be converted into KTT's and,
thereafter, the new Bank's obligations.


PREMIER ENTERPRISE: Appoints a Financial Advisor                              
------------------------------------------------
Premier Enterprise PLC has informed the SET that they have
selected Cathay Capital Company Limited as financial
advisors. Cathay Capital will help the company prepare a
rehabilitation plan. The advisor will follow up and report
the implementation of the plan to the SET for three years
from 1998 to 2000, as required.



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

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