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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, August 7, 1998, Vol. 1, No. 117
Headlines
C H I N A & H O N G K O N G
BRIGHT WAY LIMITED: Winding-up petition
CBG NOMINEES LIMITED: Members' and creditors' meeting
CATHAY PACIFIC: Results announcement
COMTOWELL LIMITED: Winding-up notice
CROWN VISION LIMITED: Members' and creditors' meetings
IDEAL PACIFIC: Committee to evaluate accounts
MAINFORD LIMITED: Winding-up petition
QUEENSLAND DECO INTERNATIONAL LIMITED: Winding-up petition
SHAW BROTHERS: Results announcement
SIU FUNG CERAMICS HOLDINGS: Siu-Fung debt talks incomplete
SPECIAL SONG LIMITED: Members' and creditors' meetings
TANG T. SUN CONSOLIDATE LIMITED: Winding-up notice
I N D O N E S I A
TOYOTA ASTRA MOTOR: Cuts work force by 25%
J A P A N
HANKYU RAILWAY: Rail firms get ratings warnings
KINKI NIPPON RAILWAY: Rail firms get ratings warning
TOKYU RAILWAY: Rail firms get ratings warnings
K O R E A
HYUNDAI: Hyundai and workers refuse to budge
KIA MOTORS: Samsung threatens Kia sale withdrawal
M A L A Y S I A
CYGAL BHD: Receives protection from creditors
ENKAI PLASTIC INDUSTRIES SDN BHD: Winding-up petition
KENG LOONG ENGINEERING TRADING SDN BHD: Winding-up petition
KUCHING PHARMACY (LIMBANG) SDN BHD: Voluntary winding-up
MEDA PROPERTY SERVICES SDN BHD: Winding-up petition
NAGAKAYA CORPORATION SDN BHD: Winding-up petition
PEMBINAAN BINTANG BARU SDN BHD: Winding-up petition
PERABOT UTAMA SDN BHD: Voluntary winding-up
RODENTROCK SDN BHD: Winding-up petition
P H I L I P P I N E S
PHILIPPINE AIRLINES: PAL names adviser for revamp plan
PHILIPPINE NATIONAL BANK: Bank's ratings cut
SAN MIGUEL: Subsidiary Rightpak in talks on alliance
S I N G A P O R E
CAM INTERNATIONAL: Former chairman rejects shares motion
T H A I L A N D
BANK OF AYUDHYA: Ayudhya rejects takeover talk
TPI POLENE PCL: Appoints professionals
THAI OIL LTD: In talks with creditors on recapitalization
=================================
C H I N A & H O N G K O N G
=================================
BRIGHT WAY LIMITED: Winding-up petition
---------------------------------------
Notice is hereby given that a petition for the winding-up
of Bright Way Limited by the High Court of Hong Kong was,
on the 4th day of August, 1988, presented to the said Court
by Leung Chak Man. The petition is scheduled to be heard on
9th of September, 1998. Creditors who support or oppose the
making of the order may appear at the time of the hearing.
CBG NOMINEES LIMITED: Members' and creditors' meeting
-----------------------------------------------------
A notice of members' and creditors' meetings appeared for
CBG Nominees Ltd (in creditors' voluntary liquidation) on
August 15,1998 at 10th Floor, Queensway Government Offices,
66 Queensway, HK.
CATHAY PACIFIC: Results announcement
------------------------------------
According to the Financial Times, Cathay Pacific, the Hong
Kong-based airline, reported a HK$175m loss for the first
half of the year. This compares to a profit of HK$1.07bn
for the corresponding period in 1997. The dividend has been
reduced from 11.5 HK cents to 3 HK cents.
COMTOWELL LIMITED: Winding-up notice
------------------------------------
A notice of a July 23, 1998 winding-up order appeared in
the Hong Kong Standard for Comtowell Limited. The petition
was presented on April 24, 1998 in the high court of the
Hong Kong Administrative Region Court of First Instance,
Companies Winding-up Proceedings N0. 270 of 1998.
CROWN VISION LIMITED: Members' and creditors' meetings
------------------------------------------------------
A notice of members' and creditors' meetings appeared for
Crown Vision Ltd (in creditors' voluntary liquidation) on
July 22,1998 at 8th Floor, Industrial Center, 489 Castle
Peak Road, Kowloon.
IDEAL PACIFIC: Committee to evaluate accounts
---------------------------------------------
Ideal Pacific Holdings, a Hong Kong listed company, has
announced the set up of a sub-committee to evaluate the
impact of financial irregularities in the company's
accounting records. The company announced July 30 possible
financial irregularities in the company's accounting
records.
MAINFORD LIMITED: Winding-up petition
-------------------------------------
Notice is hereby given that a petition for the winding-up
of Mainford Limited by the High Court of Hong Kong was, on
the 23th day of July, 1988, presented to the said Court by
Wu Ching Kwan. The petition is scheduled to be heard on
26th of August, 1998. Creditors who support or oppose the
making of the order may appear at the time of the hearing.
QUEENSLAND DECO INTERNATIONAL LIMITED: Winding-up petition
----------------------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Queensland Deco International
Limited. The petition was presented on July 22, 1998 in the
high court of the Hong Kong Administrative Region Court of
First Instance, Companies Winding-up Proceedings N0. 427 of
1998.
SHAW BROTHERS: Results announcement
-----------------------------------
Shaw Brothers announced year end results as of March 31,
1998, a total operating loss of HK$11million and a net loss
of HK$26million.
SIU FUNG CERAMICS HOLDINGS: Siu-Fung debt talks incomplete
----------------------------------------------------------
According to the SCMP, troubled Siu-Fung Ceramics Holdings
is still in the process of negotiating and discussing its
debt-restructuring proposals with banks, institutional
investors, note-holders and other creditors. It said that
despite an announcement on July 7 that an agreement was
expected to be completed by the end of last month, no
agreement had yet been finalised.
SPECIAL SONG LIMITED: Members' and creditors' meetings
------------------------------------------------------
A notice of members' and creditors' meetings appeared for
Special Song Ltd (in creditors' voluntary liquidation) on
July 13, 1998 at 10th Floor, Queenway Office, 66 Queensway,
HK.
TANG T. SUN CONSOLIDATE LIMITED: Winding-up notice
--------------------------------------------------
A notice of a July 22, 1998 winding-up order appeared in
the Hong Kong Standard for Tang T. Sun Consolidate Limited.
The petition was presented in the high court of the Hong
Kong Administrative Region Court of First Instance,
Companies Winding-up Proceedings N0. 423 of 1998.
=================
I N D O N E S I A
=================
TOYOTA ASTRA MOTOR: Cuts work force by 25%
------------------------------------------
According to the Financial Times, Toyota Astra Motor,
Indonesia's largest auto producer, has cut its work force
by 25 per cent due to falling sales.
The firm, a joint venture between Toyota and Astra
International, will reduce its work force from 4,000 to
3,000.
Production has been suspended since June. The company plans
to resume production in September.
The Times reports the company is trying to renegotiate
payments on $1bn in off-shore debt and reported Rp2,000bn
in domestic debt.
=========
J A P A N
=========
HANKYU RAILWAY: Rail firms get ratings warnings
-----------------------------------------------
Three Japanese railway operators -- Hankyu, Kinki Nippon
Railway and Tokyu - may have their A1 senior debt ratings
cut by Moody's Investors Service on concern of increasing
debt and falling property prices which will affect the
profit of these companies.
KINKI NIPPON RAILWAY: Rail firms get ratings warning
----------------------------------------------------
Three Japanese railway operators -- Hankyu, Kinki Nippon
Railway and Tokyu - may have their A1 senior debt ratings
cut by Moody's Investors Service on concern of increasing
debt and falling property prices which will affect the
profit of these companies.
TOKYU RAILWAY: Rail firms get ratings warnings
----------------------------------------------
Three Japanese railway operators -- Hankyu, Kinki Nippon
Railway and Tokyu -- may have their A1 senior debt ratings
cut by Moody's Investors Service on concern of increasing
debt and falling property prices, which will affect the
profit of these companies.
=========
K O R E A
=========
HYUNDAI: Hyundai and workers refuse to budge
--------------------------------------------
According to the Hong Kong Standard, the impasse at South
Korea's top car maker Hyundai persisted yesterday with no
sign that the union and management can reach a deal before
factories reopen for business next week.
KIA MOTORS: Samsung threatens Kia sale withdrawal
-------------------------------------------------
According to the SCMP, Samsung Group may withdraw from the
auction of Kia Motors Corp and Asia Motors if the buyer
must assume the failed firms' US$10 billion of debt.
Kia said last month its creditors would waive interest
payments on its debt for about 5 years to try to attract a
buyer, rather than writing off the loans as expected.
That decision disappointed investors and raised concern no
buyer would emerge as bidders must produce a minimum of 1.5
trillion won in cash and assume all the debt.
It was still unclear what Samsung's real intention was. A
Dresdner Kleinwort Benson Securities car analyst said it's
a gesture aimed at getting a better deal and the rest of
the bidders could follow suit because no one could afford
the takeover.
The five bidders have until August 21 to make an offer for
the two companies.
Kia and Asia Motors have more than 12.8 trillion won of
debt, which will be rescheduled at lower interest rates
once the grace period ends. Kia Motors collapsed last year
under $10 billion of debt.
Samsung Group, which has 64.5 trillion won of assets and
almost four times more debt than equity, has interests in
semiconductors, electronics, shipbuilding, construction,
finance, insurance, retailing and trading.
It started showing interest in the auto business in 1983
when a planned joint-venture car business with Chrysler
failed after Chrysler pulled out at the last minute. It
only started producing passenger cars after it received a
government licence in December 1994 after numerous
injections from a previous government. The group announced
plans to raise more than one trillion won in recent weeks
by selling shares.
According to the Hong Kong Standard, Kia Motors and Asia
Motors yesterday unveiled rights issues to drastically
increase their equity capital before the auction. Kia
Motors will make available 292.43 million shares in a
rights issue worth 1.46 trillion won, allotting 0.396 new
shares for each existing one.
Asia Motors will issue 116.43 million new shares worth
582.1 billion won, giving existing share holders the rights
to 0.336 shares for each old share in their possession.
Bidders will be allotted 51 per cent or more of equity
shares following the capital increase.
Kia also confirmed a 90 per cent write down of its existing
equity shares, worth 378.7 billion won on paper. Asia
Motors will also destroy more than 10 million shares
including those owned by Kia Motors and former managers
of Kia Motors and write down 90 per cent of its existing
equity shares.
These measures will enable Kia Motors to increase its
equity capital to 1.5 trillion won while Asia Motor's
equity will be boosted to 600 billion won.
===============
M A L A Y S I A
===============
CYGAL BHD: Receives protection from creditors
---------------------------------------------
Reuters reports Malaysian civil engineering contractor and
property developer Cygal Bhd said yesterday that it and
three subsidiaries had asked a court for protection from
creditors.
ENKAI PLASTIC INDUSTRIES SDN BHD: Winding-up petition
-----------------------------------------------------
Perwira Affin Bank Bhd on 2/6/98 petitioned for the
winding-up of Enkai Plastic Industries Sdn Bhd. The
petition is directed to be heard 25/9/98.
KENG LOONG ENGINEERING TRADING SDN BHD: Winding-up petition
-----------------------------------------------------------
Bank of Tokyo Mitsubishi (Malaysia) Bhd onm 24/6/98
petitioned for the winding-up of Keng Loong Engineering
Trading Sdn Bhd. The petition is directed to be heard on
6/10/98.
KUCHING PHARMACY (LIMBANG) SDN BHD: Voluntary winding-up
--------------------------------------------------------
The members of Kuching Pharmacy (Limbang) Sdn Bhd on
25/5/98 resolved to wind-up the company voluntarily.
Creditors of the company are requested to submit their
claims before 25/9/98.
MEDA PROPERTY SERVICES SDN BHD: Winding-up petition
---------------------------------------------------
Tap Construction Sdn Bhd on 21/7/98 petitioned for the
winding-up of Meda Property Services Sdn Bhd. The petition
is idrected to be heard on 27/10/98.
NAGAKAYA CORPORATION SDN BHD: Winding-up petition
-------------------------------------------------
Commercial Plastic Industries Sdn Bhd on 22/6/98 petitioned
for the winding-up of Nagakaya Corporation Sdn Bhd. The
petition is directed to be heard on 25/11/98.
PEMBINAAN BINTANG BARU SDN BHD: Winding-up petition
---------------------------------------------------
Primason Sdn Bhd on 2/6/98 petitioned for the winding-up of
Pembinaan Bintang Baru Sdn Bhd. The petition is directed to
be heard on 22/9/98.
PERABOT UTAMA SDN BHD: Voluntary winding-up
-------------------------------------------
The members of Perabot Utama Sdn Bhd on 3/8/98 resolved to
wind-up the company voluntarily. Creditors of the company
are requested to submit their claims before 8/9/98.
RODENTROCK SDN BHD: Winding-up petition
---------------------------------------
Electroscon Sdn Bhd on 25/5/98 petitioned for the winding-
up of Rodentrock Sdn Bhd. The petition is directed to be
heard on 25/9/98.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: PAL names adviser for revamp plan
------------------------------------------------------
According to the Hong Kong Standard, a Philippine business
daily, the Business World, reported that loss-making PAL
has picked a US consulting firm, the LEK/Alcar Consulting
Group, to act as financial adviser in the carrier's
rehabilitation plan, and to oversee the airline's
rehabilitation program and to act as the head of
negotiations with PAL's creditors. This will include
assessing the disposition of the airline's assets.
PHILIPPINE NATIONAL BANK: Bank's ratings cut
--------------------------------------------
The Asian Wall Street Journal reported that Thomas
BankWatch has reduced the ratings of the Philippine
National Bank, citing the bank's deteriorating financial
strength. The bank's past nonperformance loan ratio had
reached over 8 percent, which is higher than the national
average. Also the ratings group expects this ratio to
increase to as much as 15 percent.
The bank's short-term rating was downgraded to LC-3 from
LC-2, and its issuer rating was lowered from IC-C to IC-D.
SAN MIGUEL: Subsidiary Rightpak in talks on alliance
----------------------------------------------------
Agence France-Presse reports San Miguel Corp. said Tuesday
one of its packaging units, Rightpak International Corp.,
was in talks with an unnamed prospective foreign partner.
San Miguel reported last week its interim net profit
plummeted 75 percent from a year earlier to 723 million
pesos (17.2 million dollars) due to higher financing
charges.
New San Miguel chairman Eduardo Cojuangco has reorganized
the management and pledged to cut costs and reduce the
company's debt overhang by disposing of non-performing
assets.
San Miguel reported last month that revenues of its
packaging units, including Rightpak, rose 20 percent to 6.4
billion pesos (152 million dollars), but "margins were
squeezed by the high cost of imported raw materials" as
well as a regional glut in the supply of packaging
products.
=================
S I N G A P O R E
=================
CAM INTERNATIONAL: Former chairman rejects shares motion
--------------------------------------------------------
According to Singapore BusinessTimes, CAM International
Holdings' majority shareholder and former chairman Raymond
Chew made a surprise appearance at the company's
extraordinary general meeting yesterday to throw out a
motion to inject funds into the beleaguered company.
The CAM founder, who has claimed trial after being charged
with various offences against the company, and its second
largest shareholder Scentsurround Worldwide own 96.9
million shares or 40 per cent of CAM. Together, they beat
16 minority shareholders hands down with their votes
against the issue of new shares to raise $18 million to
repay its debts.
The latest turn of events is a blow to the cash-strapped
precision engineering firm's bid to seek a re-listing of
its shares on the SES mainboard. It was last traded at 62.5
cents before its suspension in April last year.
Finance Minister Richard Hu had earlier said that for the
suspension to be lifted, CAM needed to get its 1996 and
1997 financials approved, and show it had sufficient funds
to move ahead as a business. The accounts have been
approved.
===============
T H A I L A N D
===============
BANK OF AYUDHYA: Ayudhya rejects takeover talk
----------------------------------------------
According to the SCMP, Bank of Ayudhya, one of Thailand's
biggest commercial banks, has moved to quash rumors of an
imminent merger or capital write-down. The bank told the
Thai stock exchange the rumors, which had savaged its share
price, were unfounded and its books were sound. The bank
had been rumored to be in line for a merger with Thai
Military Bank.
TPI POLENE PCL: Appoints professionals
--------------------------------------
TPI Polene Public Company Ltd. informed the SET that it has
J.P. Morgan Securities Asia Ltd. as an additional advisor
in connection with its ongoing capital restructuring.
Merrill Lynch (Asia Pacific) Limited will focus on the
strategic sale process whilst J.P. Morgan Securities Asia
Ltd. will focus on the restructuring of the company's
indebtedness.
THAI OIL LTD: In talks with creditors on recapitalization
---------------------------------------------------------
According to the Asian Wall Street Journal, Thai Oil Ltd.,
Thailand's largest refiner, is continuing talks with
creditors and potential investors about recapitalization.
It has also recently secured a 2 billion baht ($49 million)
loan from Bangkok Bank.
Thai Oil operates a 220,000 barrel per day refinery in Sri
Racha. The company's debt to equity ratio reported rose
sharply following the floatation of the Thai baht on July
2, 1997, and depressed oil-product prices have also
reportedly squeezed profit margins. Thailand also saw
its domestic oil consumption drop by 10.5 percent from
January to April this year, according to official data.
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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