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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      

      Monday, July 6, 1998, Vol. 1, No. 94

                    Headlines


C H I N A   &   H O N G   K O N G

HAINAN DEVELOPMENT BANK: Bank Debts To Be Repaid
HUA LI KNITTING: Winding-up Petition
NEW UNION WAREHOUSE LIMITED: Winding-up Petition
ONFAIR INDUSTRIAL LIMITED: Winding-up Petition
PRESTIGE POOLS INTERNATIONAL: Winding-up Petition

RICOMAN INTERNATIONAL LIMITED: Winding-up Petition
RIGHT YEAR INDUSTRIES LIMITED: Winding-up Petition
SIMPSON CONSTRUCTION ENGINEERING: Winding-up Petition
SULAND LIMITED: Winding-up Petition
TSE SUI LUEN JEWELLERY: Results Announcement

VIDEO TRONIC: Winding-up Petition
WANG CHEONG DECORATION: Winding-up Petition
WEST WIN INVESTMENTS LIMITED: Winding-up Petition
YUET CHOI LIMITED: Winding-up Petition


J A P A N  

LONG TERM CREDIT: UBS Seeks Clarification on its Role
MECT CORPORATION: Nissin Foods to Liquidate Unit
UCHIDA YOKO: Results Announcement


K O R E A

CHUNGBUK BANKS: Share Trading Suspended
CROWN BAKERY: Starts Creditor Reconciliation Procedure
HYUNDAI MOTOR: Prosecutors Crack Down on Unionists
KANGWON BANK: Share Trading Suspended
SANGJIN COMPANY: Starts Creditor Reconciliation Procedure
SUNJIN CAN: Starts Creditor Reconciliation Procedure


M A L A Y S I A

AOKAM PERDANA: Declares Intention to Restructure
ABLETASK CONSTRUCTION SDN BHD: Winding-up Petition
ABRAR CORP BHD: Results Announcement
BANK BUMIPUTRA: Bank Bumiputra May Need Bailout
CHONGAI CORPORATION BHD: Results Announcement

DIVERSIFIED RESOURCES: Results Announcement
DORON AGRICULTURE SDN BHD: Winding-up Petition
LIKTA MARKETING SDN BHD: Voluntary Winding-up
LOTUS CIRCLE SDN BHD: Voluntary Winding-up
MICROSOUND AUDIO VIDEO TRADING SDN BHD: Winding-up Petition

OVERSEAS PROGRESS SDN BHD: Voluntary Winding-up
PERDANA INDUSTRI HOLDINGS BHD: Results Announcement
PETALING METAL WORKS SDN BHD: Winding-up Petition
TOUR PLAN (M) SDN BHD: Winding-up Petition


P H I L I P P I N E S

VICTORIAS MILLING: SEC Seeks Agreement on Rehabilitation


T H A I L A N D

BANGKOK BANK: Downgraded by Fitch IBCA
BANK OF AYUDHYA: Downgraded by Fitch IBCA
BERLI JUCKER: To Buy Back Shares in Glass Firm
KRUNG THAI BANK: Downgraded by Fitch IBCA
SIAM CEMENT: Warns Debt Repayment May Be Delayed

SIAM COMMERCIAL BANK: Downgraded by Fitch IBCA
THAI FARMERS BANK: Downgraded by Fitch IBCA
THAI MILITARY BANK: Downgraded by Fitch IBCA


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

HAINAN DEVELOPMENT BANK: Bank Debts To Be Repaid
------------------------------------------------
The Asian Wall Street Journal reports that the Industrial &
Commercial Bank of China will start paying back the debts
owed by the Hainan Development Bank on August 1. Creditors
must register with the Industrial & Commercial Bank by
September 29. The Industrial & Commercial Bank is China's
largest state-owned commercial bank and is said to have
enough funds to pay off all individual deposits and
overseas debts owned by the Hainan Development Bank.  

The Hainan Development Bank was set up in 1995 in order to
primarily take individual deposits and re-lend to local
development projects, but was shut down last month by
China's central bank, the People's Bank of China.


HUA LI KNITTING: Winding-up Petition
------------------------------------
A petition for the winding-up of Hua Li Knitting Factory
Limited by the High Court of Hong Kong was, on the 17th day
of June, 1988, presented to the said Court buy Li Shi Ting.
The petition is scheduled to be heard on 22nd of July,
1998. Creditors may appear at the hearing to support or
oppose the petition.  


NEW UNION WAREHOUSE LIMITED: Winding-up Petition
------------------------------------------------
A petition for the winding-up of New Union Warehouse
Limited was presented to the high court of the Hong Kong
Administrative Region Court of First Instance on May 13,
1998.


ONFAIR INDUSTRIAL LIMITED: Winding-up Petition
----------------------------------------------
A petition for the winding-up of Onfair Industrial Limited
was presented to the high court of the Hong Kong
Administrative Region Court of First Instance on May 12,
1998.


PRESTIGE POOLS INTERNATIONAL: Winding-up Petition
-------------------------------------------------
A petition for the winding-up of Prestige Pools
International Limited was presented in the high court of
the Hong Kong Administrative Region Court of First Instance
on May 11, 1998.


RICOMAN INTERNATIONAL LIMITED: Winding-up Petition
--------------------------------------------------
A petition for the winding-up of Ricoman International
Limited was presented to the high court of the Hong Kong
Administrative Region Court of First Instance on May 8,
1998.


RIGHT YEAR INDUSTRIES LIMITED: Winding-up Petition
--------------------------------------------------
A petition for the winding-up of Right Year Industries
Limited was presented to the high court of the Hong Kong
Administrative Region Court of First Instance on May 12,
1998.


SIMPSON CONSTRUCTION ENGINEERING: Winding-up Petition
-----------------------------------------------------
A petition for the winding-up of Simpson Construction
Engineering Company Limited was presented to the high court
of the Hong Kong Administrative Region Court of First
Instance on May 11, 1998.


SULAND LIMITED: Winding-up Petition
-----------------------------------
A petition for the winding-up of Suland Limited was
presented in the high court of the Hong Kong Administrative
Region Court of First Instance on April 15, 1998.


TSE SUI LUEN JEWELLERY: Results Announcement
--------------------------------------------
Tse Sui Luen Jewellery (International) reports its
attributable profit in the year to February is $52.96
million as compared to $116.33 million in the previous year
under the weight of soaring interest expenses. The
performance was dragged down by a $34.34 million
exceptional loss largely on reorganizing a Taiwan
franchise. Interest expenses rose 136 percent to about $100
million and eroded operating profit, which fell from
$112.46 million from $146.25 million. The company
attributed the high interest costs to a rise in bank
borrowings and high interest rates. Earnings per share fell
58% to 13.5 cents and the company directors proposed no
final dividend this year.  


VIDEO TRONIC: Winding-up Petition
---------------------------------
A petition for the winding-up of Video Tronic Industrial
Company Limited by the High Court of Hong Kong was, on the
22nd day of June, 1988, presented to the said Court buy
Wong Yuen Shan. The petition is scheduled to be heard on
22nd of July, 1998. Creditors may appear at the hearing to
support or oppose the petition.


WANG CHEONG DECORATION: Winding-up Petition
-------------------------------------------
A petition for the winding-up of Wang Cheong Decoration &
Engineering Company Limited was presented to the high court
of the Hong Kong Administrative Region Court of First
Instance on March 13, 1998.


WEST WIN INVESTMENTS LIMITED: Winding-up Petition
-------------------------------------------------
A petition for the winding-up of West Win Investments
Limited was presented in the high court of the Hong Kong
Administrative Region Court of First Instance on April 14,
1998.


YUET CHOI LIMITED: Winding-up Petition
--------------------------------------
A petition for the winding-up of Yuet Choi Limited was
presented to the high court of the Hong Kong Administrative
Region Court of First Instance on May 8, 1998.


=========
J A P A N  
=========

LONG TERM CREDIT: UBS Seeks Clarification on its Role
-----------------------------------------------------
According to a Bloomberg article in the SCMP of July,
United Bank of Switzerland (UBS), the world's second
largest bank, will hold talks with Sumitomo Trust & Banking
about the Swiss bank's 3 joint ventures with LTCB to bring
clarity to their relationship.

LTCB and Sumitomo Trust, a member of the Sumitomo Group,
announced on Saturday they were considering a merger that
would create Japan's eighth largest bank with combined
assets of about 41.9 trillion yen.

UBS, which came into being last week through the merger of
Swiss Bank Corp (SBC) and Union Bank of Switzerland,
inherited SBC's 3 joint ventures with LTCB.

SBC and LTCB agreed last summer to take a 1 per cent equity
stake in each other and to form ventures in investment
banking, asset management and private banking.

LTCB Warburg Securities began operations on June 1 and
employs a workforce of about 1,000.

LTCB UBS Brinson, the asset management venture, has assets
under management of 1.8 trillion yen. About 50 of its 130
employees are fund managers or analysts.

The private banking venture began operations yesterday.


MECT CORPORATION: Nissin Foods to Liquidate Unit
------------------------------------------------
The Asian Wall Street Journal reported that Nissin Food
Products Company, a major food maker in Japan will
liquidate its unprofitable pharmaceutical unit, the Mect
Corporation. The unit's liabilities exceeds assets by about
6 billion yen ($43.4 million) as of the end of last month.  
The liquidation is scheduled to be completed by March 31,
1999. Nissin will suffer about a 8 billion yen loss for the
current fiscal year, but a company spokesman said that
anticipated lower taxes will mean its overall earnings
outlook will not need to be revised.


UCHIDA YOKO: Results Announcement
---------------------------------
Bloomberg reports shares of Uchida Yoko Co. (8057 JP ) fell
18 yen to 325. The trading company that deals with office
equipment is likely to report a pretax loss of about 500
million yen to 1 billion yen for the year through July,
compared with a pretax profit of 1.1 billion yen of the
year before, the Nihon Keizai newspaper reported. The
company had initially expected a pretax profit of 1.2
billion yen. This is the first time in four years that the
company will report a pretax loss.


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

CHUNGBUK BANKS: Share Trading Suspended
---------------------------------------
The Korea Herald reports that the trading of shares of
Chungbuk Bank has been suspended until it succeeds in
recapitalization. On Monday, June 29, the Financial
Supervisory Commission (FSC) ordered the bank to reduce its
capital to zero. Chungbuk Bank was on the list of banks
reviewed by the FSC.


CROWN BAKERY: Starts Creditor Reconciliation Procedure
------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that Crown Bakery Company is allowed to start
its creditor reconciliation procedure. The company's
address is 241-20 Muk-dong, Chungnyang-gu, Seoul and the
president is Mr. Yoon Myung-dal. The creditors have until
July 16 to file their claims.


HYUNDAI MOTOR: Prosecutors Crack Down on Unionists
--------------------------------------------------
According to an Agence France-Presse article in the Hong
Kong Standard of July 2, union workers at Hyundai Motor,  
Korea's largest car maker, went on strike for the second
day running yesterday.

A union spokesman at Hyundai Motor said that their group
had decided to give management until July 4 to withdraw its
plans to lay off 4,830 workers as part of its restructuring
program.

He said unionised workers would get back to work starting
during the evening shift yesterday but would again down
tools on July 6.

The Korean Confederation of Trade Unions also plans to hold
a rally on July 12 and would then decide whether to join a
strike by more than 100,000 unionists from 35 banking
institutions on July 15.


KANGWON BANK: Share Trading Suspended
-------------------------------------
The Korea Herald reports that the trading of shares of the
Kangwon Bank has been suspended until it succeeds in
recapitalization. On Monday, June 29, the Financial
Supervisory Commission (FSC) ordered the bank to reduce its
capital to zero. Kangwon Bank was on the list of banks
reviewed by the FSC.


SANGJIN COMPANY: Starts Creditor Reconciliation Procedure
---------------------------------------------------------
The Suwon District Court announced in the Korean language
Maeil Kyungje that Sangjin Company is allowed to start its
creditor reconciliation procedure. The company's address is
292 Chungdaeri, Kwangju-eup, Kwangju-gun, Kyunggi-do and
the president is Mr. Kim Yong-rim. The creditors have until
July 31, 1998, to file their claims.


SUNJIN CAN: Starts Creditor Reconciliation Procedure
----------------------------------------------------
The Taechun District Court announced in the Korean language
Maeil Kyungje that Sunjin Can Manufacturing Company is
allowed to start its creditor reconciliation procedure.  
The company's address is 226-4 Samguri, Eumbong-myun, Asan-
si and the president is Mr. Han Chung-kwan. Creditors have
until July 25, 1998 to file their claims.


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

AOKAM PERDANA: Declares Intention to Restructure
------------------------------------------------
The Asian Wall Street Journal reports Aokam Perdana Bhd.
said though it is insolvent, it is now in the midst of
restructuring to restore its financial position. Aokam has
defaulted on paying of interest on a $135 million bind,
amounting to $4.3 million. Aokam is also the guarantor for
the borrowings by its subsidiaries, Aokam Industries Sdn.
Bhd. and Pembangunan Papan Lapis(Sabah) Sdn.Bhd. So far,
both units defaulted on payments of interest or principal
amounting to 33.3 million ringgit($8.1 million).


ABLETASK CONSTRUCTION SDN BHD: Winding-up Petition
--------------------------------------------------
Seawood Enterprise Sdn Bhd (petitioner) on 4/5/98
petitioned for the winding-up of Abletask Construction Sdn
Bhd (respondent). The petition is directed to be heard on
23/9/98.


ABRAR CORP BHD: Results Announcement
------------------------------------
Abrar Corp Bhd (listed in the KLSE) posted a group pre-tax
loss of RM106mil for the year ended 31/3/98 compared to
RM53.67mil in the preceding year. These are translated to a
loss per share of RM3.425 for 31/3/98, compared to EPS of
RM0.347 previously. Abrar expects the adverse economic
conditions would continue to affect its profitability
during the current financial year.


BANK BUMIPUTRA: Bank Bumiputra May Need Bailout
-----------------------------------------------
The Asian Wall Street Journal reported that the state owned
Bank Bumiputra Bhd. is expected to post losses of more than
1 billion ringgit ($242.4 million) for the year ending in
March. The Malaysian government reportedly will need to
inject an equal amount of fresh capital in the bank to keep
it afloat. According to the article, the accounting firm of
Ernst & Young recently completed an audit of this bank.  

The bank was created in 1965 with the aim of helping the
government fund its favored projects, especially those
designed to help indigenous Malaysians break into the
business world dominated by ethnic Chinese. Since the bank
was started, however, the government has twice had to bail
out the bank after bad loans wiped out its capital.


CHONGAI CORPORATION BHD: Results Announcement
---------------------------------------------
Chongai Corporation Bhd (listed in the KLSE) reported a
pre-tax loss of RM11.97mil for the year ended 31/3/98, a
slight improvement from a loss of RM12.89mil previously.
The group loss per share moved from RM0.67 previously to
RM0.95.


DIVERSIFIED RESOURCES: Results Announcement
-------------------------------------------
Singapore BusinessTimes reports Diversified Resources Bhd,
a Malaysian auto and real estate company also known as DRB,
said it posted a loss of 109.8 million Malaysian ringgit
(S$44.3 million) in the second-half ended March 31, as car
sales plunged. A year ago, the company -- which controls
Malaysia's biggest car maker Proton Bhd -- recorded a
profit of RM62.1 million.

DRB swung to a loss of RM25.6 million for the fiscal year
ended March 31, from a profit of RM123.5 million in the
year-earlier period.


DORON AGRICULTURE SDN BHD: Winding-up Petition
----------------------------------------------
Gold Coin Feedmills (Malaysia) Sdn Bhd (petitioner) on
5/5/98 petitioned for the winding-up of Doron Agriculture
Sdn Bhd (respondent). The petition is directed to be heard
on 28/8/98.


LIKTA MARKETING SDN BHD: Voluntary Winding-up
---------------------------------------------
The members of Likta Marketing Sdn Bhd resolved on 30/6/98
to wind-up the company voluntarily. The creditors of the
company are required to submit their claims before
2/8/98.


LOTUS CIRCLE SDN BHD: Voluntary Winding-up
------------------------------------------
The members of Lotus Circle Sdn Bhd on 30/6/98 resolved to
wind-up the company voluntarily. Creditors of the company
are to submit their claims before 2/8/98.


MICROSOUND AUDIO VIDEO TRADING SDN BHD: Winding-up Petition
-----------------------------------------------------------
Kenwood Electronics (M) Sdn Bhd (petitioner) on 13/5/98
petitioned for the winding-up of MicroSound Audio Video
Trading Sdn Bhd (respondent). The petition is directed to
be heard on 25/9/98.


OVERSEAS PROGRESS SDN BHD: Voluntary Winding-up
-----------------------------------------------
The members of Overseas Progress Sdn Bhd, on 24/6/98
resolved to wind-up the company voluntarily. Creditors of
the company are expected to submit their claims before
2/8/98.


PERDANA INDUSTRI HOLDINGS BHD: Results Announcement
---------------------------------------------------
Perdana Industri Holdings Bhd (listed in the KLSE) reported
a pre-tax loss of RM36.18mil for the year ended 31/3/98
compared to RM16.25mil previously. Losses were due to
provisions for doubtful debts on deposits and advances made
in respect of the proposed acquisitions aborted in August
1996 and high interest rates.


PETALING METAL WORKS SDN BHD: Winding-up Petition
-------------------------------------------------
Public Bank Bhd (petitioner) on 26/6/98 petitioned for the
winding-up of Petaling Metal Works Sdn Bhd (respondent).


TOUR PLAN (M) SDN BHD: Winding-up Petition
------------------------------------------
Simefinance Berhad (petitioner) on 24/6/98 petitioned for
the winding-up of Tour Plan (M) Sdn Bhd (respondent).


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

VICTORIAS MILLING: SEC Seeks Agreement on Rehabilitation
--------------------------------------------------------
BusinessWorld reports the Securities and Exchange
Commission (SEC) will broker an agreement with the creditor
banks of sugar refiner Victorias Milling Corp. to convince
them to approve the rehabilitation plan for the cash-
strapped firm.

Creditor banks which registered "concerns" regarding the
plan are: Security Bank, Australian and New Zealand Bank,
Banque Nationale de Paris, United Coconut Planters Bank,
Philippine Veterans Bank, Asian Bank, and Citibank NA.

Those opposing are Bank of the Philippine Islands and Dao
Heng Bank.


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

BANGKOK BANK: Downgraded by Fitch IBCA
--------------------------------------
Rating agency Fitch IBCA announced credit downgrades for
the six largest Thai banks yesterday. The rating for
Bangkok Bank was cut to "D/E" from "D". Support rating for
Bangkok Bank was affirmed at "2T". Fitch IBCA said the
ratings reflected the continued deterioration in prospects
for the Thai economy and banking sector.


BANK OF AYUDHYA: Downgraded by Fitch IBCA
-----------------------------------------
Rating agency Fitch IBCA announced credit downgrades for
the six largest Thai banks yesterday. The rating for Bank
of Ayudhya was cut to "D/E" from "D". Support rating for
Bank of Ayudhya was lowered to "4T" from "2T". Fitch IBCA
said the ratings reflected the continued deterioration in
prospects for the Thai economy and banking sector.


BERLI JUCKER: To Buy Back Shares in Glass Firm
----------------------------------------------
The Bangkok Post reports Berli Jucker Plc announced
yesterday its four billion baht rights issue has been fully
subscribed allowing it to fund its buy-back of shares in
its Thai Glass Industries subsidiary, as well as reduce its
debt and fund future acquisitions.

While a proportion of domestic shareholders declined to
take up their pro-rata allotment of the seven for four
rights issue, strong interest from foreign investors has
allowed the underwriters to fully place the new shares
through Thai Trust Fund programme.


KRUNG THAI BANK: Downgraded by Fitch IBCA
-----------------------------------------
Rating agency Fitch IBCA announced credit downgrades for
the six largest Thai banks yesterday. The rating for Krung
Thai Bank was cut to "E" from "D/E". Support rating for
Krung Thai Bank was affirmed at "2T". Fitch IBCA said the
ratings reflected the continued deterioration in prospects
for the Thai economy and banking sector.


SIAM CEMENT: Warns Debt Repayment May Be Delayed
------------------------------------------------
According to the SCMP of July 2, Thailand's biggest
maufacturing conglomerate, Siam Cement, has warned if the
economy declines further, it may be forced to delay
repayments of principal on its massive foreign debt. This
illustrates the critical situation facing the country's
economy.

Siam Cement president, Chumpol Na Lamlieng, said the
collapse in domestic demand to below healthy levels was to
blame for the deterioration of the country's industry.

The company has made strenuous efforts to increase exports
of cement, steel, petrochemicals, paper and other products
and has been partially successful in raising the domestic
prices of its hard goods which trade in dollars on the
international market. However, this had little effect on
the group's overall performance.

Mr Chumpol said exports and price recovery alone do not
compensate for the 40-50 per cent decline in domestic
sales.

Soon after last July's devaluation of the baht, the company
decided to write off losses on its unhedged foreign
currency loans of US$4.36 billion.

It declared a loss of 52 billion baht last year, compared
with a 6.7 billion baht profit the year before.

The company expects its net foreign debt to drop by $500
million to $3.9 billion by the end of this year.

A quick sale of assets is unlikely as none of its 15 global
joint-venture partners have shown interest in buying out
its interests.

A disposal of joint-venture interests would relieve the
company of about 40 per cent of its debt. According to Mr
Chumpol, some of these partners have indicated they might
be prepared to offer financial assistance.

Mr Chumpol said he believed the company has survived the
currency and external-debt phase. If sales keep dropping,
he said, more business will collapse not from debt burden
but from lack of sales.


SIAM COMMERCIAL BANK: Downgraded by Fitch IBCA
----------------------------------------------
Rating agency Fitch IBCA announced credit downgrades for
the six largest Thai banks yesterday. The rating for Siam
Commercial Bank was cut to "D/E" from "D". Support rating
Siam Commercial Bank was affirmed at "2T". Fitch IBCA said
the ratings reflected the continued deterioration in
prospects for the Thai economy and banking sector.


THAI FARMERS BANK: Downgraded by Fitch IBCA
-------------------------------------------
Rating agency Fitch IBCA announced credit downgrades for
the six largest Thai banks yesterday. The rating for Thai
Farmers Bank was cut to "D/E" from "D". Support rating for
Thai Farmers Bank was affirmed at "2T". Fitch IBCA said the
ratings reflected the continued deterioration in prospects
for the Thai economy and banking sector.


THAI MILITARY BANK: Downgraded by Fitch IBCA
--------------------------------------------
Rating agency Fitch IBCA announced credit downgrades for
the six largest Thai banks yesterday. The rating for Thai
Military Bank was cut to "E" from "D/E". Support rating for  
Thai Military Bank were lowered to "4T" from "2T". Fitch
IBCA said the ratings reflected the continued deterioration
in prospects for the Thai economy and banking sector.



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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