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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
Wednesday, July 8, 1998, Vol. 1, No. 96
Headlines
C H I N A & H O N G K O N G
CARNABY GARMENT MANUFACTURING: Winding-up petition
CHAMPION PACIFIC HOLDINGS LIMITED: Winding-up petition
CHINA VENTURETECH: Liquidators Call for Creditor Claims
ELITE WORLD ENGINEERING LTD: Winding-up petition
GREAT TECH LIMITED: Winding-up petition
GROUP SENSE INTERNATIONAL: Results Announcement
KA ON (HONG KONG) COMPANY LIMITED: Winding-up petition
K&R CONSTRUCTION COMPANY LIMITED: Winding-up petition
KOPOND LIMITED: Winding-up petition
RINTEX INTERNATIONAL LIMITED: Winding-up petition
STAR TELECOM: Considers legal action after sale fails
WHEELOCK: Results announcement
J A P A N
DAIWA SECURITIES: S&P may downgrade Daiwa's ratings
HINO MOTORS: Announces temporary lay-offs to reduce costs
K O R E A
HANSOL PAPER: To sell newsprint operations to foreign JV
HYUNDAI MOTOR: Workers stage two-day strike
KIA ELECTRONIC COMPANY: Completes creditor reconciliation
KIA ELECTRONIC MOTECH: Completes creditor reconciliation
KIA MOTORS: Kia Motors to go on the block July 15
M A L A Y S I A
ARENSI HOLDINGS: Two Arensi units default on payments
ENG LEE HENG INDUSTRIES: Voluntary winding-up
HARP MARKETING COMPANY: Voluntary winding-up
JAMIN JAYA SDN BHD: Winding-up petition
LOO & SONS REALTY SDN BHD: Winding-up petition
MALAYSIA BRITISH ASSURANCE: Results announcement
MALAYSIAN PLANTATIONS: Reports RM86Mil group pre-tax loss
MEDA HOLDINGS SDN BHD: Winding-up petition
PAN MALAYSIAN INDUSTRIES: Results announcement
PUJIAN DEVELOPMENT SDN BHD: Winding-up petition
REGENT ELECTRICAL & TRADING SDN BHD: Voluntary winding-up
THE RYDGE GROUP (MALAYSIA) SDN BHD: Winding-up petition
STRATEGIC INFORMATION GROUP: Voluntary winding-up
SYARIKAT MESIN JAHIT HUP HUAT: Winding-up petition
TRYOMOLD (M) SDN BHD: Winding-up petition
WINLYTAT TRADING SDN BHD: Voluntary winding-up
YA TIM CONSTRUCTIONS SDN BHD: Winding-up petition
YA TIM ENTERPRISE SDN BHD: Winding-up petition
P H I L I P P I N E S
PHILIPPINE AIRLINES: Regulators freeze PAL assets
SAN MIGUEL: Former Marcos crony returns to head ailing firm
T H A I L A N D
THAI CHRYSLER: Thai Chrysler sued for loan default
=================================
C H I N A & H O N G K O N G
=================================
CARNABY GARMENT MANUFACTURING: Winding-up petition
--------------------------------------------------
A notice in the Hong Kong Standard of July 7 says that a
petition for the winding up of the above named company was
presented to the High Court on June 26 by Wong Ying Lam,
and that the petition was directed to be heard before the
court at 11:00 am on July 22.
CHAMPION PACIFIC HOLDINGS LIMITED: Winding-up petition
------------------------------------------------------
A notice in the Hong Kong Standard of July 7 says that a
petition for the winding up of the above named company was
presented to the High Court on June 25 by Chan Lai-chiu,
and that the petition was directed to be heard before the
court at 9:30 am on July 22.
CHINA VENTURETECH: Liquidators Call for Creditor Claims
-------------------------------------------------------
The liquidation group of the People`s Bank of China
announced creditors of the China Venturetech Investment
Corp should register their claims between July 20 and
October 20 to claim their assets. China Venturetech was set
up in 1986 as a venture capital concern and its interests
expanded to computers, real estate, pharmaceuticals and
securities, and trusts.
ELITE WORLD ENGINEERING LTD: Winding-up petition
------------------------------------------------
A notice in the Hong Kong Standard of July 7 says that a
petition for the winding up of the above named company was
presented to the High Court on June 29 by Poon Yu Chan, and
that the petition was directed to be heard before the court
at 11:00 am on July 22.
GREAT TECH LIMITED: Winding-up petition
---------------------------------------
According to a notice in the Hong Kong Standard of July 7,
a petition for the winding up of Great Tech Limited was
presented to the High Court on June 26 by Chu Peng San, and
that the petition was directed to be heard before the court
at 11:00 am on July 22.
GROUP SENSE INTERNATIONAL: Results Announcement
-----------------------------------------------
Group Sense International Limited announced year-end
results as of March 31, 1998. The company posted a
consolidated loss of HK$1.745 million as compared to the
year before, which posted a profit of HK$12 million.
KA ON (HONG KONG) COMPANY LIMITED: Winding-up petition
------------------------------------------------------
A petition for the winding-up of Ka On (HK) Company Limited
was presented to the high court of the Hong Kong
Administrative Region Court of First Instance March 21,
1998.
K&R CONSTRUCTION COMPANY LIMITED: Winding-up petition
-----------------------------------------------------
According to a notice in the Hong Kong Standard of July 7,
liquidators have been appointed for K&R Construction
Company Limited in compulsory liquidation.
KOPOND LIMITED: Winding-up petition
-----------------------------------
A notice in the Hong Kong Standard of July 7 says that a
petition for the winding up of the above named company was
presented to the High Court on June 26 by See Sau Ching,
and that the petition was directed to be heard before the
court at 11:00 am on July 22.
RINTEX INTERNATIONAL LIMITED: Winding-up petition
-------------------------------------------------
According to a notice in the Hong Kong Standard of July 7,
a petition for the winding up of Rintex International
Limited was presented to the High Court on July 3 by Chan
Lik Chau, and that the petition was directed to be heard
before the court at 9:30 am on July 29.
STAR TELECOM: Considers legal action after sale fails
-----------------------------------------------------
The SCMP reports July 7 that Star Telecom International
Holding is contemplating taking legal action against two
companies for defaulting on a HK$146.87 million share
purchase. US-based International Wireless Communications
and IWC China failed to complete the purchase of new shares
in Star Telecom subsidiary Star Digitel on June 30. Star
Telecom said the subsidiary would seek alternative
financing to minimise the impact of the failure to
purchase.
WHEELOCK: Results announcement
------------------------------
In the absence of exceptional items, Hong Kong property
company Wheelock reports lower net profits of HK$1.45bn,
down from HK$2.53bn from the previous year. The Financial
Times reports the company attributed the decline to a lack
of exceptional items, which raised the previous year's
profits.
=========
J A P A N
=========
DAIWA SECURITIES: S&P may downgrade Daiwa's ratings
---------------------------------------------------
According to a news summary in the SCMP of July 7, S&P may
cut Daiwa Securities' ratings because of concern about the
brokerage's business prospects as competition intensifies
in Japan's unstable financial industry. The agency said
Daiwa's earnings growth would be limited because it faced
tougher competition as Japan opened up its markets, while
other Asian markets remained sluggish.
Daiwa's bond ratings of BBB plus long-term debt rating,
three notches above junk-bond status, was put on review for
possible downgrad. Its A-2 short-term rating, two notches
above junk bond status, was also put on review.
Daiwa Securities' shares fell 12 yen to 630 after the
Standard & Poors's announcement. Bloomberg reports traders
expressed concern that the news would make it more
difficult for Daiwa to follow in the footsteps of rivals
Nomura Securities Co. and Nikko Securities Co., both of
which have recently announced tie-ups with other financial
institutions to strengthen their competitiveness.
HINO MOTORS: Announces temporary lay-offs to reduce costs
---------------------------------------------------------
The Financial Times reports Hino Motors has announced it is
encouraging a year-long voluntary paid leave for 200 white-
collar workers. Hino, Japan's largest truck manufacturer,
hopes to reduce labour costs amid slumping sales. Lay-offs
are rare in Japan, where companies usually accelerate
retirement programs and freeze new hiring.
Last year the company's net earnings were down 77 per cent,
to Y1.65bn from Y7.24bn.
=========
K O R E A
=========
HANSOL PAPER: To sell newsprint operations to foreign JV
--------------------------------------------------------
The Financial Times reports Hansol Paper announced it will
sell its newsprint paper operations for $1bn to a new joint
venture with Norske Skog of Norway and Abitibi-Consolidated
of Canada.
The joint venture will take over Hansol's plant in Chonju,
South Korea and its 53 per cent stake in a joint venture
plant, Hansol Potential, in Shanghai, China. Hansol has
decided to sell its core newsprint operations to reduce
large debts.
HYUNDAI MOTOR: Workers stage two-day strike
-------------------------------------------
According to both the SCMP and the Hong Kong Standard,
workers at Hyundai downed tools yesterday for a strike of 2
days.
Production at the car maker ground to a halt yesterday as
more than 20,000 union workers joined the action.
A union spokesman said the if the management carries out
the sacking as planned, they will strengthen their fight,
referring to 4,380 jobs that will be cut at Hyundai Motors
amid a restructuring.
The spokesman said production lines in the southern city of
Ulsan had come to a halt at 4 factories manufacturing sub-
compact vehicles, 4-wheel drives and trucks.
News reports said the stoppage would affect the production
of 6,300 units worth 56 billion won.
KIA ELECTRONIC COMPANY: Completes creditor reconciliation
---------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje tha Kia Electronic Company completed its
creditor reconciliation procedure on July 4, 1998. The
company's address is 15 Youido-dong, Youngdeungpo-gu, Seoul
and the president is Mr. Sin Dong-young.
KIA ELECTRONIC MOTECH: Completes creditor reconciliation
--------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that Kia Electronic Motech Company completed
its creditor reconciliation procedure on July 4, 1998. The
company's address is 470-5 Kasan-dong, Keumchun-gu, Seoul
and the president is Mr. Yi U-jin.
KIA MOTORS: Kia Motors to go on the block July 15
-------------------------------------------------
Kia Motors Corporation and its sister company, Asia Motors
Company, will be put up for international tender on July
15, with the winners being announced at the end of August.
This announcement was made by the governor of the Korea
Development Bank (KDB), the prime creditor of Kia and Asia
Motors.
A front page article in the Korea Times also said that the
KDB plans to submit a plan to reorganize Kia and Asia
Motors before the end of this month.
Upon court approval, this plan reportedly calls for a
capital reduction and the issuance of new shares. A capital
increase process will then be followed with the new
investor's introduction of share subscription funds.
The Korea Times also reported that Ahn Kwon & Co. and its
foreign partner, Deloitte Touche Tohmatsu International
will conduct the necessary analysis to produce
documentation required for due diligence. Anderson
Consulting is also completing a report on the necessary
level of debt reduction, the requisite investment
amount, the optimum capital structure and other related
auction issues.
Kia Motors became insolvent last July. Kia Motors and Asia
Motors were granted protection from creditors under court
receivership in October 1997.
Kia Motors total assets were valued at 7.72 trillion won
last March, and Asia Motors had assets of 1.64 trillion
won. However, Kia and Asia have debts of 8.75 trillion won
and 3.72 trillion won, respectively.
According to and Agence France-Presse article in the Hong
Kong Standard, a spokesman for Daewoo Motor said Daewoo has
decided to form a consortium with Hyundai Motor to take
over Kia. The details on the consortium have yet to be
negotiated, but Daewoo expected a positive return from
Hyundai, which refused to comment on the proposed
consortium.
Samsung Motors Inc., a fledging South Korea auto firm which
pumped more than four trillion won into churning out cars
in March, said it would seek a foreign partner. It said
it's the only one that can turn Kia's business and the
country's troubled car industry around.
The three Korean firms insist Koreans should run Kia Motors
and Asia Motors to help boost the competitiveness of South
Korean cars abroad. Kia officials, however, favor Ford,
saying the US firm has promised to increase its stake to
more than 50 per cent despite concerns about Kia's union
militancy and debts.
===============
M A L A Y S I A
===============
ARENSI HOLDINGS: Two Arensi units default on payments
-----------------------------------------------------
Two wholly-owned subsidiaries of Arensi Holdings (M) Bhd
(listed in the KLSE), namely, Ultramix Sdn Bhd and Ultramix
Concrete Sdn Bhd, have defaulted in payments totalling
RM5,670,178, due to tight liquidity position. Arensi is
planning to sell idle assets in the affected companies to
realise cash to reduce debts.
ENG LEE HENG INDUSTRIES: Voluntary winding-up
---------------------------------------------
The members of Eng Lee Heng Industries Sdn Bhd on 30/6/98
resolved to wind-up the company voluntarily. Creditors of
the company are required to submit their claims before
7/8/98.
HARP MARKETING COMPANY: Voluntary winding-up
--------------------------------------------
The members of Harp Marketing Company (Malaysia) Sdn Bhd on
30/6/98 resolved to wind-up the company voluntarily. The
creditors of the company are required to submit their
claims before 6/8/98.
JAMIN JAYA SDN BHD: Winding-up petition
---------------------------------------
Public Bank Bhd on 2/6/98 petitioned for the winding-up of
Jamin Jaya Sdn Bhd. The petition is directed to be heard on
21/9/98.
LOO & SONS REALTY SDN BHD: Winding-up petition
----------------------------------------------
UOL Credit Sdn Bhd on 17/3/98 petitioned for the winding-up
of Loo & Sons Realty Sdn Bhd. The petition is directed to
be heard on 16/7/98.
MALAYSIA BRITISH ASSURANCE: Results announcement
------------------------------------------------
Malaysia British Assurance Bhd (MBA), listed in the KLSE,
reported a post-tax loss of RM61.56mil for the year ended
31/1/98, compared to a post-tax profit of RM17.28mil for
the previous year. EPS dropped 454.5% from RM0.44 to a loss
per share of RM1.56 for the year ended 31/1/98.
MALAYSIAN PLANTATIONS: Reports RM86Mil group pre-tax loss
---------------------------------------------------------
Malaysian Plantations Bhd, listed in the KLSE, posted a
group pre-tax loss of RM86.4mil for the year ended 31/3/98,
compared to a pre-tax profit of RM129.1mil previously.
The loss was mainly due to provisions for diminution in
value of quoted shares amounting to RM117.68mil.
The stock market and currency turmoil coupled with rising
interest rates and increased restrictions that have
adversely affected the group's core business of
stockbroking and property development as well as lower
contributions from associate companies.
MEDA HOLDINGS SDN BHD: Winding-up petition
------------------------------------------
Fine Century Sdn Bhd on 8/5/98 petitioned for the winding-
up of Meda Holdings Sdn Bhd. The petition is directed to be
heard on 11/8/98.
Tatalink Holdings Sdn Bhd on 8/5/98 petitioned for the
winding-up of Meda Holdings Sdn Bhd. The petition is
directed to be heard on 25/9/98.
PAN MALAYSIAN INDUSTRIES: Results announcement
----------------------------------------------
Pan Malaysian Industries Bhd (Listed in the KLSE) reported
a post-tax loss of RM346.53mil for the year ended 31/3/98
compared to a profit of RM2.96mil for the previous year.
The group's loss per share rose 100% from RM0.007 to
RM0.757 for the year ended 31/3/98.
PUJIAN DEVELOPMENT SDN BHD: Winding-up petition
-----------------------------------------------
Fine Century Sdn Bhd (petitioner) on 8/5/98 petitioned for
the winding-up of Pujian Development Sdn Bhd (respondent).
The petition is directed to be heard on 7/10/98.
Totalink Holdings Sdn Bhd on 8/5/98 petitioned for the
winding-up Pujian Development Sdn Bhd. The petition is
directed to be heard on 31/7/98.
REGENT ELECTRICAL & TRADING SDN BHD: Voluntary winding-up
---------------------------------------------------------
The members of Regent Electrical & Trading Sdn Bhd on
29/6/98 resolved to wind-up the company voluntarily.
Creditors of the company are required to submit their
claims before 7/8/98.
THE RYDGE GROUP (MALAYSIA) SDN BHD: Winding-up petition
-------------------------------------------------------
Jiwa Advertising Sdn Bhd on 29/5/98 petitioned for the
winding-up of The Rydge Group (M) Sdn Bhd.
STRATEGIC INFORMATION GROUP: Voluntary winding-up
-------------------------------------------------
The members of Strategic Information Group Sdn Bhd on
29/6/98 resolved to wind-up the company voluntarily.
Creditors of the company are required to submit their
claims before 6/8/98.
SYARIKAT MESIN JAHIT HUP HUAT: Winding-up petition
--------------------------------------------------
Public Bank Bhd on 2/6/98 petitioned for the winding-up of
Syarikat Mesin Jahit Hup Huat. The petition is directed to
heard on 22/9/98.
TRYOMOLD (M) SDN BHD: Winding-up petition
-----------------------------------------
Bank Bumiputra Malaysia Bhd on 22/4/98 petitioned for the
winding-up of Tryomold (M) Sdn Bhd. The petition is
directed to be heard on 28/8/98.
WINLYTAT TRADING SDN BHD: Voluntary winding-up
----------------------------------------------
The members of Winlytat Trading Sdn Bhd on 1/7/98 resolved
to wind-up the company voluntarily. Creditors of the
company are required to submit their claims before
7/8/98.
YA TIM CONSTRUCTIONS SDN BHD: Winding-up petition
-------------------------------------------------
Public Bank Bhd on 2/6/98 petitioned for the winding-up of
Ya Tim Constructions Sdn Bhd. The petition is directed to
be heard on 26/8/98.
YA TIM ENTERPRISE SDN BHD: Winding-up petition
----------------------------------------------
Public Bank Bhd (petitioner) on 2/6/98 petitioned for the
winding-up of Ya Tim Enterprise Sdn Bhd (respondent). The
petition is directed to be heard on 11/9/98.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: Regulators freeze PAL assets
-------------------------------------------------
According to a news summary on the Hong Kong Standard, the
Securities and Exchange Commission said in a resolution
that PAL "shall not sell, transfer or assign" nor "lease or
mortgage" its assets without regulatory approval for
transactions exceeding three million pesos.
The SEC last month named an interim receivership committee
to oversee a rehabilitation plan for the airline, which is
85.1 billion pesos in debt. The SEC order also prevents PAL
from paying liabilities incurred without regulatory
approval and suspended all claims for payments against the
airline. The interim receiver would pay for the utilities
or services provided to PAL.
BusinessWorld reports Labor Secretary Bienvinido Laguesma
yesterday said he expects PAL Employees Association
(PALEA), Flight Attendants and Stewards Association of the
Philippines (FASAP) and PAL management to act "in good
faith" in the ongoing talks over the one-month-old strike.
SAN MIGUEL: Former Marcos crony returns to head ailing firm
-----------------------------------------------------------
According to the Financial Times, Eduardo Cojuangco, a
former business partner of late Philippine president
Ferdinand Marcos, is expected to return to food and
beverage group San Miguel.
Analysts predict Mr. Cojuangco will first be elected to the
board of directors and then voted chairman and chief
executive officer. He last held the position in 1985. New
Philippine president Joseph Estrada is thought to be in
favor of Mr. Cojuangco's appointment. He controls a 48 per
cent stake in San Miguel.
San Miguel reportedly is over 50bn pesos in debt. Mr.
Cojuangco's return is seen as a move towards full
privatisation of the firm.
===============
T H A I L A N D
===============
THAI CHRYSLER: Thai Chrysler sued for loan default
--------------------------------------------------
A front page story in the Asian Wall Street Journal reports
that Thai Chrysler Automotive Ltd. has been sued by bankers
for defaulting on a $40 million dollar loan. US partner
Chrysler Corporation didn't guarantee the loans to Thai
Chrysler, and is not named in the suit. However, Chrysler
does have a 30 percent stake in this Thai joint venture.
The loan came due last year in the middle of Thailand's
financial crisis as well as during trouble between Chrysler
and Swedish Motors Corporation, which owns 70 percent of
Thai Chrysler.
According to the Asian Wall Street Journal, bankers held
off taking legal action as they believed that the two
parties would reconcile. Chrysler sought to buy the Thai
affiliate's inventory and showrooms, and signed an
agreement with the banks to undertake to repay the loans to
Thai Chrysler under easier terms provided Chrysler gained
control of the company.
However, Chrysler and Swedish Motors could not agree on the
terms of the buyout, and the negotiations collapsed.
Reportedly, there was difficulty in reaching an agreement
on burden sharing. Chrysler has now established its own
service and distribution network in Thailand.
Deutsche Bank and the Industrial Bank of Japan have filed a
lawsuit in Thailand's Central Intellectual Property and
International Trade Court on May 27 and were granted an
injunction against a lot of 271 vehicles being exported.
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.
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