/raid1/www/Hosts/bankrupt/TCRAP_Public/980728.MBX 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      

      Tuesday, July 28, 1998, Vol. 1, No. 109

                    Headlines


C H I N A   &   H O N G   K O N G

ASIA ELECTRONICS: Chief executive held by communists
BOSSINI INTERNATIONAL: Retail slump drags Bossini into red
CITY CHIU CHOW: Results announcement
GKC HOLDINGS: GKC probe widens
J&A SECURITIES: State confirms J&A merger with Guotai

LAI SUN DEVELOPMENT: Lim increases his control of Lai Sun
SING TAO HOLDINGS: Sing Tao in fresh talks
SINOAMERICAN TELECOM: Liquidators criticised for bias
TAK WING INVESTMENT: Creditors lay claim to properties


J A P A N  

ASAKAWAGUMI: Japanese builder set for $835m default
SEGA ENTERPRISES: Sega debt rating cut to junk


K O R E A

CHUNGGYE PHARMACEUTICAL: Completes creditor reconciliation
DAEWOO CORP:  S&P lowers Daewoo's foreign currency rating
GTV COMPANY: Completes creditor reconciliation
HANIL BANK: Fitch IBCA lowers Hanil's rating
HYUNDAI MOTORS CO.: S&P lowers Hyundai's credit rating

KDB SECURITIES CO:  KDB suspended pending closure
KIA MOTORS: Creditors write off 4.4 trillion won in debt
KIA MOTORS: Ford intends to participate
KIA MOTORS: GM makes late entry to take over troubled Kia
KOREA TRADING INTERNATIONAL: On verge of collapse

KWANSU COMPANY: Completes creditor reconciliation
SAMKWANG GLASS: Starts creditor reconciliation
SANNAEDEUL-INSU COMPANY: Completes creditor reconciliation
SEBAN DISTRIBUTION CO: Court declares company insolvent
U-SUNG TRAVEL: Liquidation plan approved by court


M A L A Y S I A

AMAN BERKAT SDN BHD: Winding-up petition
FRIENDLY DEVELOPMENT SDN BHD: Voluntary winding-up
INTRIA BHD: Sells Metacorp stake
MEKAR IDAMAN SDN BHD: Impact of receivership on UEM
P.V. PACIFIC (MALAYSIA) SDN BHD: Winding-up petition

PRIME UTILITIES BHD: Results announcement
TIME ENGINEERING: Time not on side of telecoms company
TRANS WEST SDN BHD: Winding-up petition


P H I L I P P I N E S

PHILIPPINE AIRLINES: PAL strike ends


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

ASIA ELECTRONICS: Chief executive held by communists
----------------------------------------------------
The Asian Wall Street Journal reported that the chairman
and chief executive officer of Asia Electronics Holdings
Company, Mr. Du Qingsong, has been held since early July by
Communist Party bosses in Xianyang, Shaanxi province,
without being charged formally or given access to counsel.  

Chinese press reports indicate that there may be a dispute
related to the US-funded Asia Electronics acquisition of
formerly public-owned assets in Xianyang, a small city
close to the ancient Chinese capital of Xian.

Asia Electronics reportedly carries a $2 million "key
man" life insurance policy on Mr. Du, and he is considered
essential to the company.


BOSSINI INTERNATIONAL: Retail slump drags Bossini into red
----------------------------------------------------------
According to the SCMP, fashion retailer Bossini
International Holdings has been hurt by the spending slump,
reporting a $45.5 million net loss for the year ended in
March against a $64.35 million net profit the previous
year.

Bossini, which sells menswear and ladies apparel, suffered
a $26.41 million exceptional loss as a result of making
provisions for foreign-exchange losses and business-closure
costs. The operating loss before exceptional items stood at
$14.63 million last year, against an $80.1 million profit
previously. Turnover rose marginally to $1.42 billion last
year, against $1.38 billion previously.

The directors proposed no final or interim dividend in the
previous financial year and an overall payout of six cents.


CITY CHIU CHOW: Results announcement
------------------------------------
City Chiu Chow, a Hong Kong listed company, announced its
year end result as of 31/3/98, posting a total operating
loss of HK$22 million and loss after tax an amount of HK$24
million.
  

GKC HOLDINGS: GKC probe widens
------------------------------
According to the SCMP, the Hong Kong stock exchange talked
to Lippo Securities and Tai Fook Capital, co-sponsors
troubled firm GKC's listing, seven months ago. The talks
concerned rumors linked to GKC's financial status and
shareholders.

A Lippo Securities director said that when GKC went public,
its accounts were audited by two major accounting firms and
had no problems at all, and sponsors only sponsored the
listing but had no right to scrutinise the directors'
personal financial status.


J&A SECURITIES: State confirms J&A merger with Guotai
-----------------------------------------------------
According to the SCMP and the Hong Kong Standard, the media
yesterday confirmed Shenzhen-based J&A Securities would
merge with China Guotai Securities and that a number of its
senior executives were being investigated for alleged
irregularities.

The Wall Street Journal reports the combined assets of the
two companies at $2.74 billion. The new company will be
China's largest underwriter and biggest trader in secondary
markets.


LAI SUN DEVELOPMENT: Lim increases his control of Lai Sun
---------------------------------------------------------
According to the scmp, Lai Sun Garment (International) and
the Lim family have raised their shareholding in cash-
hungry Lai Sun Development to 62.3 per cent from 51.6 per
cent following a rights issue.

Lai Sun Garment would pay $323.1 million for the
subscription, which brings up its stake to 49.2 per cent
from 41.7 per cent, and would finance it through internal
resources.

Mr. Lim also subscribed for additional rights shares
bringing his family's shares to 13.1 per cent from 9.9 per
cent.

Lai Sun Development said proceeds from the issue would be
used to reduce debt and as general working capital.


SING TAO HOLDINGS: Sing Tao in fresh talks
------------------------------------------
According to the SCMP, publisher Sing Tao Holdings said it
is in talks with interested parties, among them a connected
person, about the sale of part of its 43 per cent stake in
Culturecom Holdings.

The company said it was keen to sell less than 35 per cent
of Culturecom, which owns Chinese-language flagship Tin Tin
Daily and publishes Japanese books.

According to the Hong Kong Standard, the company has
released a statement today about the above-mentioned talks,
and the statement said the discussions are at a preliminary
stage.

Moat of the interested parties are independent of Sing Tao
Holdings and its subsidiaries with the exception of one who
is a connected person.

Sing Tao Holdings last week announced the sale of a
majority stake in Shengang Newspaper Publications (Hong
Kong), publisher of the Shenxing Times. The buyer of the 51
per cent stake was Shenzhen News Publication Centre, which
publishes the Shenzhen Special Zone Daily.


SINOAMERICAN TELECOM: Liquidators criticised for bias
-----------------------------------------------------
According to the scmp, Ferrier Hodgson & Marfan,
provisional liquidators for insolvent Sinoamerican Telecom
have come under fire from a judge for trying to sell off
the assets in a partisan manner for the benefit primarily
of some creditors.

It had tried to overturn a previous ruling that
Sinoamerican's assets could not be sold to Phoenix
Telecommunication and the Court of Appeal dismissed their
appeal.

Investors in Sinoamerican, mainly from the United States
and Middle East, had injected US$17 million into the firm.
The majority shareholder and director was Allan Yuen Shek-
sang.

Approximately $10 million was owed to Dragon Investment, a
Cayman Islands company.

The court found there had been a serious falling out
between Mr Yuen and those who could be regarded as
supporting him, and investors, note-holders and the partner
in a Shenzhen pager venture.

The head of the Shenzhen company, Ligao Telecom Technology,
had asked for urgent funds to inject into the joint venture
in order to pay suppliers.

Liquidators received a bid from Phoenix on June 23. The
judge said it is clear from the papers that Phoenix is a
creature of some of the creditors of the company, namely
the note-holders.

The proposed sale involved the transfer of all of the
assets of the company to Phoenix. The court said "the net
effect of this would be that Mr Yuen ... would be left with
the shares in a company with no assets at all, and the
creditors behind Phoenix ... would in effect have taken
over the business of the company through Phoenix."

The court further criticised that no attempt was made by
the liquidators to assess or estimate the value of the
company's assets, in particular the value attached to the
Shenzhen joint venture. The joint venture was dubbed as
Sineamerican's only valuable asset.

Costs of the appeal were not allowed in any winding-up.


TAK WING INVESTMENT: Creditors lay claim to properties
------------------------------------------------------
Tak Wing Investments Holdings, a Hong Kong listed company,
has confirmed reports that one of the company's bankers,
acting as mortgage-provider in possession of pledged
properties, intends to auction off five floors of the
commercial arcade in Odeon Building at North Point and one
unit at Dynamic Cargo Center at Tsuen Wan after the company
failed to service its outstanding loans.

The properties were pledged for about HK$100 million in
banking facilities, of which HK$76 million remains unpaid
as of July 24, 1998. Tak Wing also said three other banks
have indicated that pledged properties with a net book
value of about HK$259 million should be surrendered to
them.

A company statement said the group may have sufficient cash
flow for its operations in the next three months if it
manages to sell its unpledged property in Hennessy Road and
certain other assets, including club debentures.  


=========
J A P A N  
=========

ASAKAWAGUMI: Japanese builder set for $835m default
---------------------------------------------------
According to the Hong Kong Standard of July 25, Kiyo Bank
said it expects a default on 15.08 billion yen in loans to
listed construction company Asakawagumi.

Wakayama-based Asakawagumi collapsed under a mountain of
debt as Kiyo Bank, its main lender, refused to grant it
further loans. It's the fourth construction company listed
on a Japanese exchange to go under in about a year.

The company failed to come up with 2.3 billion yen to cover
payments due this month, as Kiyo Bank refused to extend
further loans. Its liabilites exceeded assets by 20 billion
yen.


SEGA ENTERPRISES: Sega debt rating cut to junk
----------------------------------------------
The Asian Wall Street Journal reports Moody's Investor
Services Inc. has lowered its long-term debt rating of Sega
Enterprises Ltd. to Ba1 from Baa2, which relegates Sega to
junk-bond status. The rating affects 120 billion yen
($849.1 million) of outstanding bonds.  

Sega Enterprises is one of the leading companies in the
amusement industry and has a solid market position in
arcade games, amusement facilities operations, and home
video-game products. Moody's says Sega's ratings reflect
the inherent volatility of the industry that results from
the need to consistently deliver new products to its user
base. Furthermore, Japan's weak consumer spending is
expected to adversely affect Sega's arcade machine and
amusement facility operations.


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

CHUNGGYE PHARMACEUTICAL: Completes creditor reconciliation
----------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that Chunggye Pharmaceutical Company has
completed its creditor reconciliation procedure. The
company's address is 94-69 Youngdeungpo-dong 7-ga,
Youngdeungpo-gu, Seoul and the president is Mr. Chang Min-
su.


DAEWOO CORP:  S&P lowers Daewoo's foreign currency rating
---------------------------------------------------------
The Asian Wall Street Journal reports that Standard &
Poor's (S&P) has lowered its foreign currency debt of
Daewoo Corporation from B to B-, and is keeping the
corporation on CreditWatch with negative implications.

The downgrade reflects the difficult operating environment
as well as the company's worsening financial profile.  
Daewoo's construction and automobile businesses are
suffering from contracting demand due to Korea's recession.  

Moreover, Daewoo's continued investments in emerging
markets are perceived as facing greater risks in view of
growing political and economic uncertainties in Asia.


GTV COMPANY: Completes creditor reconciliation
----------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that GTV Company has completed its creditor
reconciliation procedure. The company's address is 22
Chung-dong, Chung-gu, Seoul and the president is Mr. Hwang
Sung-kyu.


HANIL BANK: Fitch IBCA lowers Hanil's rating
--------------------------------------------
The Asian Wall Street Journal reports that Fitch IBCA
lowered Hanil Bank's individual rating from D/E to E. The
downgrade reflects Fitch's doubts about the bank's ability
to survive its current crisis unaided. Fitch cited the fact
that its first half-year loss of 820 billion won (or $643.9
million), which is equal to about 40 percent of its
capital, has nearly eliminated the possibility that the
bank can restore its capital base without state support.


HYUNDAI MOTORS CO.: S&P lowers Hyundai's credit rating
------------------------------------------------------
The Asian Wall Street Journal reports that Standard &
Poor's (S&P) has lowered its long-term debt of Hyundai
Motor Company from B+ to B, and is keeping the company on
CreditWatch with negative implications.

The downgrade reflects Hyundai Motors' weakening ability to
generate earnings amid Korea's recession. Export growth is
not expected to fully offset the sharp decline in domestic
sales. Domestic sales dropped 50 percent in the first half
of this year.  


KDB SECURITIES CO:  KDB suspended pending closure
-------------------------------------------------
According to the Hong Kong Standard, KDB Securities Co, a
near-bankrupt South Korean brokerage, will be suspended
from business operations from today until it is permanently
closed.

The brokerage, which posted losses for a third consecutive
year, would be the fourth Korean securities company to
disappear this year under mounting losses and a prolonged
labour strike to protest job dismissals.


KIA MOTORS: Creditors write off 4.4 trillion won in debt
--------------------------------------------------------
The Korea Times reports the Korea Development Bank and some
30 other creditor banks of Kia Motors and its sister
company Asia Motors decided to write off loans totaling 4.4
trillion won. The banks have put both of these companies up
for sale through an international tender.  

The write off comes to 3.03 trillion won for Kia Motors,
and 1.37 for Asia Motors.  

Additionally, the banks have rescheduled the remaining debt
of these auto makers. Kia is now to repay secured loans in
installments over three years after a two-year grace period
at an annual interest rate of 10.5 percent. Unsecured loans
will be repaid in installments over five years at 6 percent
interest following the same two-year grace period.  

Asia Motors' debt servicing conditions also involve
repayment in installments over three years after a two-year
grace period, but at a 9 percent annual interest rate for
secured loans and 6.5 percent of unsecured loans.  

The Korea Times reports that the total debt for the two
firms (including the write offs) is 8.75 trillion won for
Kia and 3.07 trillion won for Asia Motors.  

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.  


KIA MOTORS: Ford intends to participate
---------------------------------------
According to the SCMP, Ford submitted a letter of intent to
participate in an auction of Kia and its Asia Motors
affiliate. The company has until August 21 to make a bid
for the two companies, possibly in tandem with its Mazda
Motor affiliate or other partners.

Hyundai Motor, Daewoo Motor and Samsung Motors also
submitted letters of intent ahead of yesterday's noon
deadline.


KIA MOTORS: GM makes late entry to take over troubled Kia
---------------------------------------------------------
According to the SCMP, there is a tussle between General
Motors Corp and its rival Ford Motor in a bidding war for
Kia Motors Corp and its commercial vehicle arm, Asia Motors
Corp.

A Daewoo spokesman said GM, which had proposed a
partnership with Daewoo, told them that GM had submitted
its letter of intent to take over Kia, challenging Ford,
which is believed to have an edge over other firms in the
running because of existing holdings in Kia.

Daewoo may team up with Hyundai or GM or another party in
setting up a consortium for the bidding and is awaiting a
briefing on bidding details today.

Others in the running for the bid are Korean car maker
Hyundai Motor and Samsung Motors, Italy's Fiat and Sweden's
Scania.

After yesterday's session to reveal details of the auction,
including the scale of debt write-offs for Kia and Asia
Motors, tenders must be submitted by August 21. The winner
of the contest will be announced on September 1. Analysts
said that to win the race, competitors must focus on
forming consortiums and raising foreign funds.

Hyundai said they could raise as much foreign funds as they
wanted and Daewoo said raising a few hundreds of millions
of dollars for the takeover would not be a problem for
Daewoo which exports US$20 billion per year.

The Hong Kong Standard shows a similar report but it says
that creditors of Kia and Asia Motors on Friday discussed
terms for debt write-offs and resheduling in return for the
firms' takeover. It also says that some 40 per cent of the
total debts are expected to be written off.


KOREA TRADING INTERNATIONAL: On verge of collapse
-------------------------------------------------
The Korea Herald reports that Korea Trading International
Inc., a company founded in 1979 as a trading agent
supporting exports of small and medium sized producers, is
in a financial crisis and may collapse.  

Korea Trading International was established by its largest
shareholder, the Korea International Trading Association
(KITA).

Earlier this year, creditor banks of Korea Trading
International asked KITA to be a guarantor for the
company's 59.4 billion won debt. However, KITA, which in
February guaranteed the repayment of debts up to 52.7
billion won, has stopped providing the guarantee.  

According to the Korea Herald, KITA blames Korea Trading
International's management for the crisis saying that it
should be allowed to go under. Korea Trading failed to
develop new markets or gather up-to-date information as it
made shipments for mostly uncompetitive small manufactures.  


KWANSU COMPANY: Completes creditor reconciliation
-------------------------------------------------
The Suwon District Court announced in the Korean language
Maeil Kyungje that Kwansu Company has completed 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.


SAMKWANG GLASS: Starts creditor reconciliation
----------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, Samkwang Glass Company has been allowed to
start a creditor reconciliation procedure by the Seoul
District Court.


SANNAEDEUL-INSU COMPANY: Completes creditor reconciliation
----------------------------------------------------------
The Suwon District Court announced in the Korean language
Maeil Kyungje that Sannaedeul-insu Company has completed
its creditor reconciliation procedure. The company's
address is 39-2 Torip-myun, Ichon-shi, Kyunggi-do and the
president is Mr. Yi Ki-deok.


SEBAN DISTRIBUTION CO: Court declares company insolvent
-------------------------------------------------------
The Seoul District Court announced in the Korean language
Maeil Kyungje that it has adjudicated Seban Distribution
Co. to be insolvent. The company's address is 54 Myungil-
dong, Kangdong-gu, Seoul and the president is Mr. Ahn
Seung-jae. Creditors have until August 29 to file their
claims.


U-SUNG TRAVEL: Liquidation plan approved by court
-------------------------------------------------
U-sung Travel Company has advertised in the Korean language
Maeil Kyungje that its liquidation plan was approved by the
Seoul District Court and that the company's creditors are
to submit their claim until September 18. The company's
address is 53-7 Chungdam-dong, Kangnam-gu, Seoul and the
manager is Mr. Park Chang-wook.


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

AMAN BERKAT SDN BHD: Winding-up petition
----------------------------------------
Firstgain Holdings Sdn Bhd on 15/6/98 petitioned for the
winding-up of Aman Berkat Sdn Bhd. The petition is directed
to be heard on 25/9/98.


FRIENDLY DEVELOPMENT SDN BHD: Voluntary winding-up
--------------------------------------------------
The members of Friendly Development Sdn Bhd on 23/7/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
24/8/98.


INTRIA BHD: Sells Metacorp stake
--------------------------------
Intria Bhd, a construction firm listed in the KLSE, entered
into a put-and-call agreement to sell a stake in Metacorp
Bhd (also listed in the KLSE).

The proposed disposal was due to Intria's failure to top up
a shortfall in security cover and/or to reduce the total
amount outstanding under a term loan facility.


MEKAR IDAMAN SDN BHD: Impact of receivership on UEM
---------------------------------------------------
The receivership of Mekar Idaman Sdn Bhd would have minimal
financial impact on United Engineers (Malaysia) Bhd (listed
in the KLSE) as it only paid RM1.125mil for its investment
in Mekar.

Mekar on the other hand holds 50.01% of Intria Bhd (listed
in the KLSE).

Mekar had been placed under receivership after defaulting
on payments on RM570mil in loans.


P.V. PACIFIC (MALAYSIA) SDN BHD: Winding-up petition
----------------------------------------------------
P.V. Pacific Pte Ltd on 12/5/98 petitioned for the winding-
up of P.V. Pacific (Malaysia) Sdn Bhd. The petition is
directed to be heard on 14/8/98.


PRIME UTILITIES BHD: Results announcement
-----------------------------------------
Prime Utilities Bhd (listed in the KLSE) reported a 98.9%
improvement in the group post-tax losses from RM243.83mil
in 30/4/97 to a loss of RM2.64mil for 30/4/98.

Loss per share also dropped from RM4.06 to RM0.04 during
the same period.

The share price dropped from RM18 (24/7/97) to RM2.08
(24/7/98).


TIME ENGINEERING: Time not on side of telecoms company
------------------------------------------------------
The Hong Kong Standard shows a Reuters article which says
that Time Engineering is fighting an uphill battle to find
a cash-rich strategic partner to rescue its telecoms unit
and relieve onerous debts of between 2.5 billion and 5
billion ringgit in total.

Time said on July 14 it had obtained court protection from
creditors.

An analyst said the company has been talking with various
people over the last 4 years but no deal is likely to be
made shortly. Time will most likely get its debt paid but
will not get much equity value.

Rumors say Technology Resources Industry (TRI) and Telekon
Malaysia are in talks to buy a stake in Time's telecoms
unit, Time Telecommunications. Both Telekom and TRI denied
this month that any deal had been reached.

TRI has around 940,000 subscribers for its analogue and
digital GSM digital services, making it Malaysia's largest
cellular operator. Time has about 170,000 subscribers to
its PCN digital service, making it one of the smallest
operators in the country.

It operates Malaysia's largest trunk fibre-optic network,
which runs the length of the 848 km North-South Expressway.

TRI itself has debts of 1.5 billion ringgit.

Some analysts said the most likely outcome was the complete
dissolution of Time's businesses, with competing firms
buying its assets at fire-sale prices.


TRANS WEST SDN BHD: Winding-up petition
---------------------------------------
Shell Malaysia Trading Sdn Bhd on 18/5/98 petitioned for
the winding-up of Trans West Sdn Bhd. The petition is
directed to be heard on 7/10/98.


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

PHILIPPINE AIRLINES: PAL strike ends
------------------------------------
According to the Hong Kong Standard, Philippine Airlines
said the deal with the ground crew union was reached after
nearly 15 hours of non-stop negotiations when President
Estrada personally took a direct hand in resolving the
dispute.


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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