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/raid1/www/Hosts/bankrupt/TCRAP_Public/980702.MBXT 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 Thursday, July 2, 1998, Vol. 1, No. 93 Headlines C H I N A & H O N G K O N G A & U INTERNATIONAL: Winding-up Petition AMERY TEXTILES LIMITED: Winding-up Petition EMB-MART INDUSTRIAL: Winding-up Petition FISH & CHIPS LIMITED: Winding-up Petition FOO LUEN WEAVING AND DYEING: Winding-up Petition GLOBAL MARCH LIMITED: Winding-up Petition GOLD RAY INVESTMENT LIMITED: Winding-up Petition HONGKONG PO KIT TOWEL: Winding-up Petition INTEGREE PROFESSIONAL BEAUTY: Winding-up Petition KOSONIC INTERNATIONAL: Investor to Play Role MAN KEE POULTRY: Winding-up Petition SHARP BRAVE: Wound up After Failure to Repay Debt WHARF HOLDINGS: Denies Rumors on T&T Sale WHARF HOLDINGS: Tunnel Rights in Doubt I N D O N E S I A BAKRIE & BROTHERS: Anticipates Agreement With Creditors J A P A N HOKKAIDO TAKUSHOKU: Bridge Bank Won't Handle Disposal JAPAN AIRLINES: JAL Express Begins Operations SUMITOMO BANK: Bank Is Sued Over Mortgage Lenders' Failure K O R E A CHUNG CHONG BANK: Criminal Probe of Executives Planned DAEDONG BANK: Criminal Probe of Executives Planned DONGNAM BANK: Criminal Probe of Executives Planned DONGHWA BANK: Criminal Probe of Executives Planned KOREA FIRST BANK: May Be Merged or Sold to Daewoo KUMKANG INDUSTRY: Starts Creditor Reconciliation KYUNGKI BANK: Criminal Probe of Executives Planned SEOULBANK: May Be Merged or Sold to Daewoo Group M A L A Y S I A AOKAM PERDANA: Timber Company Declares Insolvency ASIA ENTERTAINMENT NETWORK SDN BHD: Winding-up Petition ASIAN HAND GUIDES PUBLICATIONS SDN BHD: Winding-up Petition DIETHELM HOLDINGS: Results Announcement KOOKA MARKETING (PENANG) SDN BHD: Voluntary Winding-up MENANG CORP BHD: Results Announcement PERUSAHAAN SADUR TIMAH: Defaults on Repayment to One Bank SEROJA AGENCIES SDN BHD: Winding-up Petition P H I L I P P I N E S METRO PACIFIC: New Subscriptions Bring in Cash PHILIPPINE AIRLINES: Cannot Dismiss Flight Attendants S I N G A P O R E CASA HOLDINGS: Results Announcement GOLDTRON LTD: Discloses Write-offs JACK CHIA-MPH: Discloses Write-offs T H A I L A N D KRUNGTHAI THANAKIT: Details Progress Report NATIONAL FINANCE PCL: Status on Non-performing Loans PREMIER ENTERPRISE: Employs Financial Advisor TOTAL ACCESS: CAT Eases up on TAC Royalties ================================= C H I N A & H O N G K O N G ================================= A & U INTERNATIONAL: Winding-up Petition ---------------------------------------- A petition for the winding-up of A & U International Trading Limited was presented in the high court of the Hong Kong Administrative Region Court of First Instance on May 7, 1998. AMERY TEXTILES LIMITED: Winding-up Petition ------------------------------------------- A petition for the winding-up of Amery Textiles Limited was presented to the high court of the Hong Kong Administrative Region Court of First Instance on May 8, 1998. EMB-MART INDUSTRIAL: Winding-up Petition ---------------------------------------- A petition for the winding-up of EMB-MART Industrial Company Limited was presented in the high court of the Hong Kong Administrative Region Court of First Instance on April 9, 1998. FISH & CHIPS LIMITED: Winding-up Petition ----------------------------------------- A petition for the winding-up of Fish & Chips Limited was presented to the high court of the Hong Kong Administrative Region Court of First Instance on March 18, 1998. FOO LUEN WEAVING AND DYEING: Winding-up Petition ------------------------------------------------ A petition for the winding-up of Foo Luen Weaving and Dyeing Factory Limited was presented in the high court of the Hong Kong Administrative Region Court of First Instance on April 15, 1998. GLOBAL MARCH LIMITED: Winding-up Petition ----------------------------------------- A petition for the winding-up of Global March Limited was presented to the high court of the Hong Kong Administrative Region Court of First Instance on May 13, 1998. GOLD RAY INVESTMENT LIMITED: Winding-up Petition ------------------------------------------------ A petition for the winding-up of Gold Ray Investment Limited was presented to the high court of the Hong Kong Administrative Region Court of First Instance on March 13, 1998. HONGKONG PO KIT TOWEL: Winding-up Petition ------------------------------------------ A petition for the winding-up of HongKong Po Kit Towel and Table Cloth Cleaning Service Limited was presented to the high court of the Hong Kong Administrative Region Court of First Instance on April 15, 1998. INTEGREE PROFESSIONAL BEAUTY: Winding-up Petition ------------------------------------------------- A petition for the winding-up of Integree Professional Beauty Products Limited was presented to the high court of the Hong Kong Administrative Region Court of First Instance on April 15, 1998. KOSONIC INTERNATIONAL: Investor to Play Role -------------------------------------------- Kosonic International Holdings, an audio goods maker, said it will bring in an independent investor to the company. According to its managing director, Mr William Ko, the company was preparing to put a restructuring proposal to the stock exchange in a bid to resume trading of its stocks, which have been suspended since October, 1996. MAN KEE POULTRY: Winding-up Petition ------------------------------------ A petition for the winding-up of Man Kee Poultry Company Limited was presented to the high court of the Hong Kong Administrative Region Court of First Instance on April 14, 1998. SHARP BRAVE: Wound up After Failure to Repay Debt ------------------------------------------------- According to the SCMP of July 1, electronics goods maker Sharp Brave, a wholly owned subsidiary of troubled Billion International Holdings, is to be wound up after failing to pay off debts of more than $9 million. Sharp Brave had borrowed $10.9 million between May 1995 and May 1996, but by September of last year had failed to repay the debt. Only one of seven post-dated cheques delivered to construction firm Leung Kee in December last year was honored, amounting to $2 million. A winding-up petition was filed after Sharp Brave failed to respond to a final demand of $9.2 million in January this year. Yesterday, counsel for Sharp Brave contested the petition on the grounds that verbal arrangements had been made to settle the debt. However, counsel for Leung Kee said that if there was such an agreement, it would be in the interest of both parties to have a written document, and that the absence of evidence of Sharp Brave's assets was evidence of insolvency. The court ruled that the company should be wound up and will give reasons for such decision in writing by the beginning of next week. Billion managed to raise $36 million in a rights issue this month after struggling with losses of $12.4 million in the final third of last year. WHARF HOLDINGS: Denies Rumors on T&T Sale ----------------------------------------- According to the Hong Kong Standard of July 1, Wharf Holdings scotched rumors that the group was talking with prospective buyers for its wholly-owned telephone subsidiary, New T&T. The telecom firm earned $1.1 billion in 1997 and it is expected to post a 50 per cent to 60 per cent growth this year. The company said it is currently maintaining a low debt-to- asset ratio of 24 per cent and will strive to keep it at below 30 per cent. Group chairman said less than 10 per cent of the group's loan portfolio requires refinancing in 1998, because 80 per cent has already been secured and unused facilities adequately cover the budgeted needs. The group's net asset value as of April this year was $34.82 per share. The group chairman said the group is optimistic that there will be strong demand for offices and the 500-plus serviced apartments at Gateway 2 because of the shortage of quality Grade A offices and apartments in Kowloon. The group also said a high percentage of tenancy renewals in its various developments had been concluded. WHARF HOLDINGS: Tunnel Rights in Doubt -------------------------------------- According to the SCMP of July 1, Wharf Holdings has predicted that the Cross-Harbour Tunnel Co's franchise to run the Cross-Harbour Tunnel will probably not be renewed by the government when the agreement expires next year. However, the company said that any potential void in revenues from the loss of the tunnel would be made up by earnings from the Western Harbour Tunnel. The company is looking towards the opening of the new airport. The company had refinanced 80 per cent of its $2.8 billion in debt due this year. The company also said the despite its investment property portfolio, their total 1998 billings will stand up well against the 1997 level. It said that its exposure to rental renegotiations each year was limited to about a quarter of its portfolio and a very high percentage of these renewals has already been concluded in the first half of this year. Moody's Investors Service downgraded Wharf's credit rating to Baa3 from Baa1 at the beginning of last month. Standard & Poor's also put Wharf on its CreditWatch list. ================= I N D O N E S I A ================= BAKRIE & BROTHERS: Anticipates Agreement With Creditors ------------------------------------------------------- The Asian Wall Street Journal reported that Bakrie & Brothers, a diversified holding company with a core agricultural business, is continuing to negotiate with its creditors and expects to reach an agreement with its international lender of $1.2 billion in foreign debt by the end of the year. According to the companies director, Chase Manhattan is advising Bakrie & Brothers in its negotiations, and a decision has not been made as to whether or not Bakrie & Brothers will join the Indonesian Debt Restructuring Agency. This new agency is to be established on August 1 under the Indonesian debt agreement. ========= J A P A N ========= HOKKAIDO TAKUSHOKU: Bridge Bank Won't Handle Disposal ----------------------------------------------------- Nikon Keizai reports a bridge bank will not be used to liquidate failed Hokkaido Takushoku Bank, Taku Yamasaki, the ruling Liberal Democratic Party's Policy Research Council chief, said Tuesday at a press conference in Kushiro, Hokkaido. Yamasaki added that government-affiliated financial institutions should extend loans to sounder borrowers among those that borrowed from the failed bank. Yamasaki also said the failed bank should set aside plenty of loan-loss reserves by borrowing money from the Deposit Insurance Corp. This will help smoothly transfer credits of Hokkaido Takushoku to North Pacific and other financial institutions. JAPAN AIRLINES: JAL Express Begins Operations --------------------------------------------- JAL Express Co., a wholly owned unit of financially troubled Japan Airlines, will start operations today by taking over two of JAL's domestic routes, helping Japan's biggest airline to cut costs. SUMITOMO BANK: Bank Is Sued Over Mortgage Lenders' Failure ---------------------------------------------------------- The Sumitomo Bank is being sued by Japan's Housing Loan Administration for alleged involvement in the collapse of several mortgage lending companies in 1995. A report in the Asian Wall Street Journal said that the suit filed in Tokyo District Court seeks 4.83 billion yen ($34.1 million) in damages and accuses Sumitomo of knowingly introducing unsound borrowers to mortgage lenders, eventually contributing to their collapse. The Housing Loan Administration was created in 1995 following the collapse of seven mortgage lending companies, which forced the government to allocate 680 billion yen to clean up bad debts. The Asian Wall Street Journal previously reported the Standard and Poor's Rating Group as saying that proposed merger activity by Sumitomo with the Long Term Credit Bank of Japan will greatly deplete its financial resources and leaves the bank extremely vulnerable to future shocks in the operating environment. ========= K O R E A ========= CHUNG CHONG BANK: Criminal Probe of Executives Planned ------------------------------------------------------ The government announced plans to criminally investigate the executives of the five banks ordered by the Financial Supervisory Commission (FSC) which are being absorbed by stronger banks. The Chung Chong Bank is being taken over by the Hana Bank. The FSC also released figures of the amount of loans that these banks had provided to major borrowers who are now mostly bankrupt. The Korea Times quoted a source at the Chong Wa Dae (the Korean Presidential residence, or the Blue House) that the details of these loans reveals that these banks have lent large amounts of money to bankrupt and nonviable firms without due credit analysis. Unless bribery was involved, the source said, such an amount of loans would not have been provided. All executives of these banks were dismissed Monday following the government order to close their banks. Meanwhile, for the second straight day, bank business was paralyzed at the targeted banks by a lack of cooperation from the employees. There are allegations that the unionized employees have manipulated computer codes to block normal operations and prevent customers from withdrawing deposits. DAEDONG BANK: Criminal Probe of Executives Planned -------------------------------------------------- The government announced plans to criminally investigate the executives of the five banks ordered by the Financial Supervisory Commission (FSC) which are being absorbed by stronger banks. The Daedong Bank is being taken over by the Kookmin Bank. The FSC also released figures of the amount of loans that these banks had provided to major borrowers who are now mostly bankrupt. The Korea Times quoted a source at the Chong Wa Dae (the Korean Presidential residence, or the Blue House) that the details of these loans reveals that these banks have lent large amounts of money to bankrupt and nonviable firms without due credit analysis. Unless bribery was involved, the source said, such an amount of loans would not have been provided. All executives of these banks were dismissed Monday following the government order to close their banks. Meanwhile, for the second straight day, bank business was paralyzed at the targeted banks by a lack of cooperation from the employees. There are allegations that the unionized employees have manipulated computer codes to block normal operations and prevent customers from withdrawing deposits. DONGNAM BANK: Criminal Probe of Executives Planned -------------------------------------------------- The government announced plans to criminally investigate the executives of the five banks ordered by the Financial Supervisory Commission (FSC) which are being absorbed by stronger banks. The Dongnam Bank is being taken over by the Housing and Commercial Bank. The FSC also released figures of the amount of loans that these banks had provided to major borrowers who are now mostly bankrupt. The Korea Times quoted a source at the Chong Wa Dae (the Korean Presidential residence, or the Blue House) that the details of these loans reveals that these banks have lent large amounts of money to bankrupt and nonviable firms without due credit analysis. Unless bribery was involved, the source said, such an amount of loans would not have been provided. All executives of these banks were dismissed Monday following the government order to close their banks. Meanwhile, for the second straight day, bank business was paralyzed at the targeted banks by a lack of cooperation from the employees. There are allegations that the unionized employees have manipulated computer codes to block normal operations and prevent customers from withdrawing deposits. DONGHWA BANK: Criminal Probe of Executives Planned -------------------------------------------------- The government announced plans to criminally investigate the executives of the five banks ordered by the Financial Supervisory Commission (FSC) which are being absorbed by stronger banks. The Donghwa Bank is being taken over by the Shinhan Bank. The FSC also released figures of the amount of loans that these banks had provided to major borrowers who are now mostly bankrupt. The Korea Times quoted a source at the Chong Wa Dae (the Korean Presidential residence, or the Blue House) that the details of these loans reveals that these banks have lent large amounts of money to bankrupt and nonviable firms without due credit analysis. Unless bribery was involved, the source said, such an amount of loans would not have been provided. All executives of these banks were dismissed Monday following the government order to close their banks. Meanwhile, for the second straight day, bank business was paralyzed at the targeted banks by a lack of cooperation from the employees. There are allegations that the unionized employees have manipulated computer codes to block normal operations and prevent customers from withdrawing deposits. KOREA FIRST BANK: May Be Merged or Sold to Daewoo ------------------------------------------------- A Bloomberg article in the SCMP said that struggling Seoulbank and Korea First Bank may be merged or sold to Daewoo Group and other domestic businesses instead of foreign investors according to a senior financial official. The change of tactic followed a Coopers & Lybrand audit which found the banks had a lot more liabilities than assets, even after the government invested US$ 1 billion in each. Daewoo Group chairman Kim Woo-cheong said last month he would try to set up a $4 billion international joint venture bank to prevent a second economic crisis. KUMKANG INDUSTRY: Starts Creditor Reconciliation ------------------------------------------------ It is reported in the Korean language Maeil Kyungje's Business Brief section that the Pusan District Court has approved Kumkang Industry Company's plan for its creditor reconciliation. KYUNGKI BANK: Criminal Probe of Executives Planned -------------------------------------------------- The government announced plans to criminally investigate the executives of the five banks ordered by the Financial Supervisory Commission (FSC) which are being absorbed by stronger banks. The Kyungki Bank is being taken over by the KorAm Bank. The FSC also released figures of the amount of loans that these banks had provided to major borrowers who are now mostly bankrupt. The Korea Times quoted a source at the Chong Wa Dae (the Korean Presidential residence, or the Blue House) that the details of these loans reveals that these banks have lent large amounts of money to bankrupt and nonviable firms without due credit analysis. Unless bribery was involved, the source said, such an amount of loans would not have been provided. All executives of these banks were dismissed Monday following the government order to close their banks. Meanwhile, for the second straight day, bank business was paralyzed at the targeted banks by a lack of cooperation from the employees. There are allegations that the unionized employees have manipulated computer codes to block normal operations and prevent customers from withdrawing deposits. SEOULBANK: May Be Merged or Sold to Daewoo Group ------------------------------------------------ A Bloomberg article in the SCMP said that struggling Seoulbank and Korea First Bank may be merged or sold to Daewoo Group and other domestic businesses instead of foreign investors according to a senior financial official. The change of tactic followed a Coopers & Lybrand audit which found the banks had a lot more liabilities than assets, even after the government invested US$ 1 billion in each. Daewoo Group chairman Kim Woo-cheong said last month he would try to set up a $4 billion international joint venture bank to prevent a second economic crisis. =============== M A L A Y S I A =============== AOKAM PERDANA: Timber Company Declares Insolvency ------------------------------------------------- Aokam Perdana, the Malaysian Timber company said it is insolvent and unable to pay 33.3 million ringgit in loans. Aokam was once the country's biggest publicly traded timber company. Like other Malaysian companies, such as timber company Golden Pharos and construction company SCK Group, Aokam couldn't repay debt in the face of the current downturn. ASIA ENTERTAINMENT NETWORK SDN BHD: Winding-up Petition ------------------------------------------------------- Cityneon Display & Construction (M) Sdn Bhd (petitioner) on 23/6/98 petitioned for the winding-up of Asia Entertainment Network Sdn Bhd (respondent). ASIAN HAND GUIDES PUBLICATIONS SDN BHD: Winding-up Petition ----------------------------------------------------------- Sykt Eng Wa Litho Printing Sdn Bhd (petitioner) on 19/6/98 petitoned for the winding-up of Asian Hand Guides Publications Sdn Bhd(respondent). DIETHELM HOLDINGS: Results Announcement --------------------------------------- Diethelm Holdings (M) Bhd, listed in the KLSE, recorded a pre-tax loss of RM30.2mil in 1997 due to depreciation of the local currency, Asian economic crisis and higher interest rates. The group expects a bumpy ride in the next two years and plans to consolidate its position by capitalising on its core activities of pharmaceuticals, logistics services and consumer products. KOOKA MARKETING (PENANG) SDN BHD: Voluntary Winding-up ------------------------------------------------------ The members of Kooka Marketing (Penang) Sdn Bhd resolved to wind-up the company voluntarily on 22/6/98. MENANG CORP BHD: Results Announcement ------------------------------------- Menang Corp Bhd, listed in the KLSE, recorded a pre-tax loss of RM61.22mil for the fiscal year 1997. Menang will continue to focus on homes within the RM150,000 ceiling and will closely observe the market before launching any commercial property projects. PERUSAHAAN SADUR TIMAH: Defaults on Repayment to One Bank --------------------------------------------------------- Perstima (listed in the KLSE) had defaulted in repayment to Sabah Development Bank Bhd, with regard to a revolving credit for RM80mil. Perstima explained that it was in a very bad shape when the new management took over in January 1998. Perstima had entered into negotiations with the bank to discuss options for settlement and that the bank had stayed exercising its legal options in respect of the debenture as various settlement proposals were being studied. SEROJA AGENCIES SDN BHD: Winding-up Petition -------------------------------------------- RHB Bank Bhd (petitioner) on 31/5/98 petitioned for the winding-up of Seroja Agencies Sdn Bhd (respondent). The petition is directed to be heard on 16/9/98. ===================== P H I L I P P I N E S ===================== METRO PACIFIC: New Subscriptions Bring in Cash ---------------------------------------------- RP Digest cites a Balita News article stating listed investment and management company Metro Pacific Corporation (MPC) has said it received P14 billion (US$348 million) in cash for the new common shares to be issued at P1.30 per share. The company's president said the subscriptions were received from certain local affiliates of the First Pacific Company Limited based on the agreement signed on June 8, 1998. He added that the funds will be used to reduce the company's debts, particularly those denominated in foreign currencies. He is confident that the scheduled warrants offering to be held later this year is expected to encourage other stockholders to subscribe for new shares on terms similar to those offered to the principal stockholders. MPC, formerly Metro Drug, Inc., is a diversified Filipino holdings company with interests in real estate development, telecommunications, packaging, consumer products and banking. PHILIPPINE AIRLINES: Cannot Dismiss Flight Attendants ----------------------------------------------------- The RP Digest cites a Balita News article that a labor arbiter of the National Labor Relations Commission (NLRC) temporarily restrained the Philippine Airlines (PAL) yesterday from dismissing its flight attendants in connection with the rehabilitation program it has decided to implement to enable the company to recover from heavy financial losses caused by the pilots' strike. More than 1,400 flight attendants were terminated by PAL management last June 15. Members of the Airline Pilots Association of the Philippines (ALPAP) said they will also ask the Department of Labor and Employment (DOLE) to restrain the PAL management from dismissing them. The pilots said they will also ask the labor department to stop PAL management from hiring their replacements. ================= S I N G A P O R E ================= CASA HOLDINGS: Results Announcement ----------------------------------- Singapore BusinessTimes says Casa Holdings has reported a group net loss of $1.59 million for the half-year ended March 31. During the previous corresponding period, the company reported a net profit of $1.77 million. Group turnover dropped by 42 per cent to $37 million at half-time this year. The group's performance, Casa said, was affected by the regional currency crisis. As in the previous corresponding period, no dividend is declared. GOLDTRON LTD: Discloses Write-offs ---------------------------------- Singapore BusinessTimes reports contract manufacturer Goldtron Ltd disclosed $140 million in write-offs with the release of its results for the year ended March 31. Confirming an earlier BT report, Goldtron yesterday said its extraordinary loss was due primarily to writedowns in telecommunication-related operations, relocation and discontinued project costs. These were offset by gains from the disposal of subsidiary and associated companies. Net earnings came to $7.3 million, a far cry from the $22 million in 1996, bringing earnings per share to 1.2 cents, compared to 6 cents previously. JACK CHIA-MPH: Discloses Write-offs ----------------------------------- Singapore BusinessTimes reports investment holding company Jack Chia-MPH reported huge write-offs of $73 million. Net profit for the year ended March 31 tumbled 68 per cent to $8 million on a turnover of $726.5 million, which was 9 per cent up on higher sales from its residential homebuilding division. The company attributed its extraordinary loss of $73 million to provisions related to associated companies. A provision of $25 million was made for JC-MPH's share of extraordinary losses in the associated companies while $20.57 million was for loan receivables from an associated company. Over $24 million of provisions were made for receivables from associated companies and a subsidiary. Group pre-tax profit was down 41 per cent to $20.8 million because of a fall in profit from its share trading activities. Provisions totalling $12.8 million were made for the fall in value in short-term quoted shares, inventory obsolescence and shortages, and doubtful receivables. =============== T H A I L A N D =============== KRUNGTHAI THANAKIT: Details Progress Report ------------------------------------------- As per the Bank of Thailand's announcement dated May 18, 1998, Krungthai Thanakit (KTT) has been assigned to jointly manage seven finance companies alongside Bank of Thailand officials, through the newly appointed board of directors. Authorities have completed the capital reduction and increase exercise of the seven companies. As a result, all companies have become state-owned with the Financial Institutions Development Fund (FIDF) now holding 99.9% of all seven companies' shares. NATIONAL FINANCE PCL: Status on Non-performing Loans ---------------------------------------------------- The recent news on the acquisition of a finance company by a commercial bank with its press statement indicating the non-performing loans of such finance company at 36% or approximately Baht 20,820 million, has made the investors at large understand that the rest of finance companies could hardly survive without acquisition. Furthermore, there has been a rumour that National Finance PCL would enter into a similar circumstance. As a consequence, such incident adversely effects the share prices of finance industries at large, including National Finance. We therefore would like to clarify that we would not enter into any acquisition other than Ekachart Finance & Securities PCL. As at 31 May 1998, our non-performing loans is at 30% or approximately Baht 13,075 million, in which Baht 4,367 million has been made into a reserve. As this release is made prior to the half fiscal year, it is neither verified nor audited. We have never sought financial assistance from the Finance Institutions Development Fund (FIDF). On the contrary, we have to this date been a lender to the FIDF. Our application for the Super Finance license has achieved a favourable response at every step. As of now, the inspection for the company's readiness on new business is in progress. PREMIER ENTERPRISE: Employs Financial Advisor --------------------------------------------- Premier Enterprise PLC has informed the SET that the company has appointed Cathay Capital Company Limited as financial advisor to assist in the preparation of a rehabilitation plan. Cathay Capital will study the details of the company and help prepare the rehabilitation plan, including follow up, and report the implementation of the plan to the SET for three years from 1998 to 2000 as required. TOTAL ACCESS: CAT Eases up on TAC Royalties ------------------------------------------- According to the Nation, through an agreement with the Communications Authority of Thailand (CAT) board, debt- ridden Total Access Communication Plc (TAC), the country's second-largest cellular phone operator, may end up paying little or no royalties. The board resolution, however, could put CAT into financial difficulties. Although TAC is supposed to pay CAT Bt1.42 billion in royalties, the company proposed that CAT lower the fee payment by deducting the value-added tax (VAT), which CAT has not yet refunded to TAC. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Princeton, NJ USA, and Beard Group, Inc., Washington, DC USA. Debra Brennan and Lexy Mueller, Editors. Copyright 1998. All rights reserved. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re- mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $875 per month delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *