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             A S I A   P A C I F I C      

      Tuesday, August 11, 1998, Vol. 1, No. 119

                    Headlines


C H I N A   &   H O N G   K O N G

GKC HOLDINGS: Four arrested in GKC probe
HOP FUNG STEVEDORES & TRANSPORTATION: Winding-up notice
ITC GROUP: Results announcement
JOYCE BOUTIQUE: Posts $207m loss amid heavy provisions
K. WAH INTERNATIONAL: Results announcement

LAI SUN DEVELOPMENT: Lai Sun faces climb from debt pit
PAUL Y-ITC CONSTRUCTION: Disposal weakens ITC performance
PAUL Y PROPERTIES GROUP: Disposal weakens ITC performance
RHINTEX INTERNATIONAL LIMITED: Winding-up notice
SIU-FUNG CERAMICS: Siu-Fung puts debt fix before trading

THEME INTERNATIONAL: Landlords seek to repossess outlets
WEALTHEX LIMITED: Winding-up notice
WELL BOND GROUP LIMITED: Winding-up notice
WING HANG: Charges for bad and doubtful debts


I N D O N E S I A

BANK BUMI DAYA: To merge with Bank Pembangunan Indonesia
BANK PEMBANGUNAN INDONESIA: To merge with Bank Bumi Daya


J A P A N  

LONG TERM CREDIT: UBS removes reference to LTCB
MITA INDUSTRIAL: Files for reorganization


K O R E A

CITY-I SEMICONDUCTOR: Company's trading suspended
HANGIL MERCHANT BANK: Hangil sues top execs
LG SEMICON: LG Semicon shuts down two chip plants
SAEHAN MERCHANT BANKING CORP: Saehan suing its top execs
YOUNGJIN PHARMACEUTICAL: Completes creditor reconciliation


M A L A Y S I A

LONGTAI INDUSTRIAL SDN BHD: Winding-up petition
UMW HOLDINGS BHD: UWM Holdings ratings cut


T H A I L A N D

ALPHATEC ELECTRONIC: Creditors file with receiver
ELECTRICITY GENERATING: Results announcement
NAVA THANAKIT: Small investors criticise top brass
TELECOMASIA CORP: TelecomAsia offers NEC equity for debt


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

GKC HOLDINGS: Four arrested in GKC probe
----------------------------------------
The Commercial Crime Bureau yesterday arrested four men in
conviction with a suspected fraud involving HK$23 million
at kitchen materials supplier GKC Holdings.

Sources said two of the arrested men were former directors
of the company. Sources said the amount involved could be
as high as HK$200 million.

This sparked seven bank creditors and one finance company
to recall HK$170 million in loans between them as of July
30, 1998, bringing the company a cash flow problem. GKC was
dealt a further blow as more bank creditors and some
suppliers filed a wave of litigation against the company.    


HOP FUNG STEVEDORES & TRANSPORTATION: Winding-up notice
-------------------------------------------------------
A notice of a July 29, 1998 winding-up order appeared in
the Hong Kong Standard for Hop Fung Stevedores &
Transportation Company Limited. The petition was presented
on July 2, 1998 in the high court of the Hong Kong
Administrative Region Court of First Instance, Companies
Winding-up Proceedings N0. 449 of 1998.


ITC GROUP: Results announcement
-------------------------------
ITC, a Hong Kong listed company in civil engineering,
contracting and investment group, has seen its three
locally listed arms record their falling profit or loss
last year.

ITC Corp made a HK$37.6 million loss for the 15-month
period to the end of March. The company recorded an
exceptional loss of HK$191 million, the bulk attributed to
the net loss arising from the partial disposal of an
associate.

Paul Y-ITC Construction Holdings, (which was held 40% by
ITC), saw net profit for the year to the end of March fall
by 31% to HK$209 million. The company's results were pulled
down by an exceptional write down of HK$219 million, after
making HK$178 million in provisions for falling value of
property it owns and HK$40.9 million of provisions for
securities losses.

Paul Y properties group (74.2 % held by Paul Y-ITC
Construction) made a HK$249 million loss after a HK$54
million profit a year earlier.  


JOYCE BOUTIQUE: Posts $207m loss amid heavy provisions
------------------------------------------------------
Hong Kong luxury goods retailer Joyce Boutique Holdings
reported a loss of HK$207.2 million for the year to 31
March, against a profit of HK$30.2 million a year ago.

The company said an exceptional loss was made on provisions
for the disclosure of business in the Philippines and
Thailand, the write-off of a long-term investment in South
Korea, and provisions for the cost of closing retail stores
in Hong Kong.

Joyce also had to make provisions for losses on early
terminations of rental leases as well as permanent
diminution in the value of interests in associated
companies.

The result was far worse than the forecast HK$106.1 million
loss in the Estimate Directory.  


K. WAH INTERNATIONAL: Results announcement
------------------------------------------
K Wah International, a Hong Kong listed company has posted
a total operating loss of HK$ 133 million and a net loss of
HK$346 million as at year end March 31, 1998.


LAI SUN DEVELOPMENT: Lai Sun faces climb from debt pit
------------------------------------------------------
According to the SCMP, Lai Sun this year has been working
hard to dispose of assets in order to reduce debt which now
amounts to more than HK$9 billion. The group has sold about
HK$3 billion in assets in the past few months, with most of
the proceeds used for the reduction of debt. This has cut
the company's debt-to-equity ratio from about 60 per cent
to 50 per cent, still above the firm's 40 per cent target.

Besides asset disposal, Lai Sun Development raised funds in
a recent HK$503 million rights issue and turned for help to
a long term friend, textile and property tycoon Chen Din-
hwa, who holds 13.66 per cent in another debt-ridden
property company, Sino Land.

Analysts said Lai Sun Development's financial health had
improved, although gearing remained relatively high.

Analysts said Lai Sun Development could ask the hotel arm
to pay it a special dividend following the sale of the New
York hotel, which was expected to reap an estimated US$400
million, or to buy a stake in the five-star Furama Hotel to
help improve cash flow.

It has managed to further improve finances by securing a
US$200 million five and a half year loan facility from the
Hongkong Bank, secured over the Furama Hotel in place of an
existing short-term facility of US$350 million repayable at
the end of September.

Analysts believe the Lim family, which also reduced its
stake in Asia Television in May, will seek ways of
revamping the group.

An analyst said Lai Sun would eventually pass through its
critical situation but this would take time. Like other
developers, it was a victim of the regional crisis and
credit crunch.

Selling investment properties had cut debt but was cutting
out an important earnings contributor in rental income. One
of the most updated estimates of Lai Sun Development's net
profit for the year to July, according to last month's
edition of The Estimate Directory, is Worldsec Securities'
HK$507 million forecast, which represents a 34 per cent
fall from the previous year. The company said gearing is
the their top priority.


PAUL Y-ITC CONSTRUCTION: Disposal weakens ITC performance
---------------------------------------------------------
ITC, a Hong Kong listed company in civil engineering,
contracting and investment group, has seen its three
locally listed arms record their falling profit or loss
last year.

Paul Y-ITC Construction Holdings, (which was held 40% by
ITC), saw net profit for the year to the end of March fall
by 31% to HK$209 million. The company's results were pulled
down by an exceptional write down of HK$219 million, after
making HK$178 million in provisions for falling value of
property it owns and HK$40.9 million of provisions for
securities losses.


PAUL Y PROPERTIES GROUP: Disposal weakens ITC performance
---------------------------------------------------------
ITC, a Hong Kong listed company in civil engineering,
contracting and investment group, has seen its three
locally listed arms record their falling profit or loss
last year.

Paul Y properties group (74.2 % held by Paul Y-ITC
Construction) made a HK$249 million loss after a HK$54
million profit a year earlier.  


RHINTEX INTERNATIONAL LIMITED: Winding-up notice
------------------------------------------------
A notice of a July 29, 1998 winding-up order appeared in
the Hong Kong Standard for Rhintex International Limited.
The petition was presented on July 3, 1998 in the high
court of the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 449 of 1998.


SIU-FUNG CERAMICS: Siu-Fung puts debt fix before trading
--------------------------------------------------------
According to the SCMP, chairman of Siu Fung Ceramics
Holdings, Lee Siu Fung, said that with a aim for orderly
trading, the company has refused to resume trading in its
shares until a plan to restructure its $3 billion in debts
is completed in October. He denied rumors that this has
anything to do with his personal financial position saying
that he had not pledged any of his shares to banks or
margin companies.

In the wake of a consortium's proposal to buy a 56.26 per
cent stake in the company for $800 million, Siu Fung would
soon sign a formal agreement with 24 creditors such as
banks and noteholders to freeze repayment of the $2.2
billion in debt owed mostly to Hongkong Bank and Hang Seng
Bank. It also owes 1.1 billion yuan to banks across the
border.

Mr Lee said Siu Fung would count on Kumaigai's ultimate
mainland-backed parent, China Everbright International. He
said China Everbright's chairman Mr Zhu would help a lot in
solving problems in areas such as interest rates and cash
flow.

When the rescue proposal is completed, Mr Zhu would take
over policy making while Mr Lee would remain an executive
director.

More than half of Siu Fung's 34 joint venture factories
still operating in the mainland saw narrowing losses last
year against the previous year. Mr Lee said the business is
still viable, so the company will try to bring the closed
factories back to production.

According to the Hong Kong Standard, Mr Lee said that an
agreement for Kumagai Gumi to acquire a controlling stake
in Siu Fung was due to be signed on or before a deadline
set at October 31, and share trading will resume shortly
after the agreement is signed.

The managing director of a listed company, who is also a
well-known industrialist, will join the board of Siu Fung.

Mr Lee expects a significant turnaround in business after
the restructuring with China Everbright and Kumaigai Gumi
using Siu Fung Ceramics products for property projects in
Hong Kong and on the mainland. The company expects to
return to profitability when it joins the China Everbright
group. Kumagai Gumi's deputy managing director said the
company hoped to see Siu Fung break even by next year and
generate profits by either the year 2000 or 2001.


THEME INTERNATIONAL: Landlords seek to repossess outlets
--------------------------------------------------------
According to the SCMP, 4 writs were filed against The Shop
Clothing, a wholly-owned subsidiary of the cash-strapped
fashion retail chain Theme International, seeking immediate
repossession of the premises and repayment of rent which
allegedly has not been paid since June. Three of these four
writs were filed by Wharf Properties.

Theme International was faced with an estimated $440
million provision from Emporium, which is 99.5 per cent
owned by Westcorp, which is in turn held 56 per cent by
Theme and the rest by mainland state-controlled China
Everbright.


WEALTHEX LIMITED: Winding-up notice
-----------------------------------
A notice of a July 29, 1998 winding-up order appeared in
the Hong Kong Standard for Wealthtex Limited. The petition
was presented on March 31, 1998 in the high court of the
Hong Kong Administrative Region Court of First Instance,
Companies Winding-up Proceedings N0. 222 of 1998.


WELL BOND GROUP LIMITED: Winding-up notice
------------------------------------------
A notice of a July 29, 1998 winding-up order appeared in
the Hong Kong Standard for Well Bond Group Limited. The
petition was presented on July 5, 1998 in the high court of
the Hong Kong Administrative Region Court of First
Instance, Companies Winding-up Proceedings N0. 449 of 1998.


WING HANG: Charges for bad and doubtful debts
---------------------------------------------
According to the SCMP, Wing Hang Bank reported an almost 71
per cent jump in charges for bad and doubtful debts, which
dragged attributable profit down 21 per cent to $365.6
million in the six months to June.

The charge rose to $119.65 million, containing $90 million
of specific provisions and $30 million general provisions.

Non-performing loans - where repayment of principal and
interest is between three and six months overdue - more
than doubled to $591 million as at June 30 from $219.93
million in December.


=================
I N D O N E S I A
=================

BANK BUMI DAYA: To merge with Bank Pembangunan Indonesia
--------------------------------------------------------
According to the SCMP, the Indonesian government issued a
memorandum of Economic and Financial Policies, sent to the
International Monetary Fund yesterday, that by August 21,
it would be announced that Bank Bumi Daya and Bank
Pembangunan Indonesia (Bapindo) would be merged, and the
two banks' non-performing loans would be transferred to the
AMU.

The document also said that negotiations were under way
with potential buyers for four of the six insolvent banks
taken over in April. The purchases would be made after the
banks' non-performing loans were transferred to the
Indonesian Bank Restructuring Agency's (Ibra) Asset
Management Unit (AMU). The four banks were not named.

According to the Hong Kong Standard, a source close to the
six banks said the decision to declare the four insolvent
was positive because it would end the uncertainty over
whether these banks would be closed. The sources also said
that ABN Amro Bank of the Netherlands was interested in
buying Bank Danamon, one of the banks believed to be sold
first.


BANK PEMBANGUNAN INDONESIA: To merge with Bank Bumi Daya
--------------------------------------------------------
According to the SCMP, the Indonesian government issued a
memorandum of Economic and Financial Policies, sent to the
International Monetary Fund yesterday, that by August 21,
it would be announced that Bank Bumi Daya and Bank
Pembangunan Indonesia (Bapindo) would be merged, and the
two banks' non-performing loans would be transferred to the
AMU.

The document also said that negotiations were under way
with potential buyers for four of the six insolvent banks
taken over in April. The purchases would be made after the
banks' non-performing loans were transferred to the
Indonesian Bank Restructuring Agency's (Ibra) Asset
Management Unit (AMU). The four banks were not named.

According to the Hong Kong Standard, a source close to the
six banks said the decision to declare the four insolvent
was positive because it would end the uncertainty over
whether these banks would be closed. The sources also said
that ABN Amro Bank of the Netherlands was interested in
buying Bank Danamon, one of the banks believed to be sold
first.


=========
J A P A N  
=========

LONG TERM CREDIT: UBS removes reference to LTCB
-----------------------------------------------
According to Kyodo News, two joint ventures between the
Long-Term Credit Bank  of Japan (LTCB) and UBS AG of
Switzerland have removed any reference to the troubled
Japanese partner in business cards and company-related
documents, an LTCB official said Monday.

The move came at the request of UBS, but the official names
of the companies -- LTCB Warburg and LTCB UBS Brinson --
remain unchanged, the official said.

The Financial Times reported in its overseas edition Monday
that UBS is considering buying the remaining 50% stake in
the two joint venture firms and removing any reference to
LTCB in the companies.

LTCB has been in the process of restructuring under the
weight of 1, 378.5 billion yen in problem loans as measured
by new stricter Japanese accounting standards.


MITA INDUSTRIAL: Files for reorganization
-----------------------------------------
According to Kyodo News, Mita Industrial Co., a major
manufacturer of copiers, filed for reorganization Monday
under Japanese bankruptcy law, in a move seen as a de facto
declaration of bankruptcy.

Mita Industrial, founded in Osaka in 1948, has liabilities
of more than 200 billion yen attributed to the protracted
economic slump and the yen's slide against the U.S. dollar.
It has a workforce of some 1,800.

Bloomberg reports shares of Kyocera Corp. fell 170 yen to
6,780 on concern that the maker of electronics components
will help Mita Industrial with its restructuring plans.


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

CITY-I SEMICONDUCTOR: Company's trading suspended
-------------------------------------------------
According to the Korean language Maeil Kyungje, the Korean
Stock Exchange suspended trading of the City-I
Semiconductor Company until August 11 1998, as the company
applied to start a creditor reconciliation procedure with
the Chungju District Court.


HANGIL MERCHANT BANK: Hangil sues top execs
-------------------------------------------
The Korea Times reports that Taejon-based Hangil Merchant
Bank has filed a lawsuit against its own executives seeking
compensation for huge losses incurred from alleged
mismanagement.  

The bank's license cancellation procedures are also
reportedly underway, and it is under investigation for
engaging in illegal credit extension practices.  

Furthermore, the bank is expected to be liquidated as it
can not meet a 6 percent capital adequacy ratio calculated
using standards set by the Bank for International
Settlements (BIS).

The Hangil Merchant Bank's operations were suspended in
mid-June following a run on customers' deposits. The
suspension was prompted when the bank could not pay back
customer deposits worth 111 billion won over the first two
weeks of June.

The Hangil Merchant Bank, which has 1.47 trillion won in
assets and 1.35 trillion won in liabilities, was founded in
1979 and purchased by the Nasan textile group in 1996. A 40
percent stake was later sold to the Songwon Construction
Firm in 1997.  


LG SEMICON: LG Semicon shuts down two chip plants
-------------------------------------------------
The Hong Kong Standard reports that one of South Korea's
top semiconductor makers, LG Semicon, yesterday stopped
production at two plants --- Chongju and Gumi --- for a
week amid a worldwide glut of microchips. Workers would be
given holidays. This was the first time the company has
stopped production at its plants, whereas Samsung
Electronics would suspend production for 7 days until
August 22, its third suspension since June.


SAEHAN MERCHANT BANKING CORP: Saehan suing its top execs
--------------------------------------------------------
The Korea Times reports that the Saehan Merchant Bank
(whose license cancellation procedures are also reportedly
underway) has filed a lawsuit against its own executives
seeking compensation for huge losses incurred from alleged
mismanagement.  

The bank yesterday filed a suit against five former and
incumbent executives, including president Noh Young-koo and
former president Chun Sang-hwan for 10 billion won in
losses that are alleged to be the result of poor management
practices. These practices reported resulted in the bank's
turnaround lending to its sister companies, excessive
payments in the construction of its buildings, and the
purchase of securities from its sister firms at high
prices.

The bank's operations have already been suspended, and it
is under investigation for engaging in illegal credit
extension practices.

Furthermore, it is expected to be liquidated as it can not
meet a 6 percent capital adequacy ratio calculated using
standards set by the Bank for International Settlements
(BIS).


YOUNGJIN PHARMACEUTICAL: Completes creditor reconciliation
----------------------------------------------------------
In the Korean language Maeil Kyungje, the Seoul District
Court advertised that the Youngjin Pharmaceutical Company
has completed its creditor reconciliation. The company's
address is 277-58 Sungsu-dong, 2-ga, Sungdong-gu, Seoul and
the president is Mr. Kim Chong-in.


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

LONGTAI INDUSTRIAL SDN BHD: Winding-up petition
-----------------------------------------------
Asia Commercial Finance (M) Bhd. had on 14.4.1998
petitioned for the winding-up of Longtai Industrial Sdn.
Bhd. The petition is directed to be heard on 24.8.1998.


UMW HOLDINGS BHD: UWM Holdings ratings cut
------------------------------------------
The Asian Wall Street Journal reported that the Rating
Agency Malaysia Bhd. cut its rating on 77million ringgit of
UWM Holdings Bhd. debt from A2 to A3. The rating downgrade
reported reflected more severe market conditions that UMW
faces due to the slump in the Malaysian economy.  

The bulk of the UMW business is auto related, and it has an
entrenched market position in the distribution of Toyota
autos and forklifts.


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

ALPHATEC ELECTRONIC: Creditors file with receiver
-------------------------------------------------            
The Nation reports a total of 1,252 creditors have filed
requests with the receiver of Alphatec Electronic Plc for  
debt payment of 19.8 billion baht ($471.43 million).

Among the creditors, 232 are general creditors seeking
payback of 17.9 billion baht ($426.19 million) and 1,020
are company employees seeking 39.7 million baht ($945,240).

The company went into court-supervised debt restructuring
in June. Krung Thai is the largest creditor with 4.2
billion baht ($100.00 million).

According to Visit Visitsora-ard, head of the debt-
restructuring office, creditors are allowed to dispute the
requests for debt payment by August 17.

Price Waterhouse Coopers, appointed to advise the
restructuring, said it would submit a plan to creditors for
consideration within two months from now.


ELECTRICITY GENERATING: Results announcement
--------------------------------------------
According to the Wall Street Journal, Electricity
Generating has reported a baht $7.4 million loss in the
second quarter, which compares with earnings of baht 735.3
million for the same period in 1997.


NAVA THANAKIT: Small investors criticise top brass
--------------------------------------------------
Small shareholders of Nava Thanakit Finance and Securities
bitterly criticised major shareholders, management and
directors yesterday for leading the company to bankruptcy.

The shareholders' meeting was the first since Nava was
taken over by the Bank of Thailand with six other finance
companies in May. The companies are expected to be merged
with Krungthai Thanakit Finance and Securities, a
subsidiary of state-run Krung Thai Bank.

Nava executives were now examining the books to set a price
on assets and liabilities to be sold to Krungthai Thanakit.
Certain property and fixed assets, as well as other loan
assets now in dispute in the court, would remain with Nava.
Krungthai Thanakit would help manage remaining assets to
pursue delinquent debts. Deposits now total about two
billion baht.


TELECOMASIA CORP: TelecomAsia offers NEC equity for debt
--------------------------------------------------------
According to the Hong Kong Standard, Thailand's "Nation"
reported yesterday that TelecomAsia Corp has asked NEC, the
main technology supplier for a US$500 million wireless
phone system, to accept equity in exchange for debt
payments. The limited-range phone system had free trials
for 100,000 people in recent months. But it might be
scrapped without a debt-for-equity swap because of weaker-
than-expected demand, said a TelecomAsia executive.


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.  ISSN: 1520-9482.  

This material is copyrighted and any commercial use,
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forwarding, electronic re-mailing and photocopying) is
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The TCR -- Asia Pacific subscription rate is $875 per
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term of the initial subscription or balance thereof are
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