---

      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, August 18, 1998, Vol. 1, No. 124

                         Headlines

C H I N A   &   H O N G   K O N G

AWT HOLDINGS: AWT Plans Share Issue to Relieve Debt
CA PACIFIC: Liquidators Find HK$500m Shortfall at CA Pacific
FUJIAN GROUP: Property Developer Posts HK$15m Loss
GERMAN KITCHEN: Woes Mount with HK$30 million Claim
ORIENT OVERSEAS: Reveals US$14.8 Million in Losses

I N D O N E S I A

GARUDA: Boeing Agrees to Lease Terminations

J A P A N  

LONG TERM: Fitch Downgrades Credit Ratings; Future Unclear
MATSUI TRUST: Fitch Downgrades Credit Ratings
MITSUBISHI TRUST: Fitch Downgrades Credit Ratings
SHOWA PLASTICS: Seeks Court Protection from Creditors
SUMITOMO TRUST: Fitch Downgrades Credit Ratings
TOYO TRUST: Fitch Downgrades Credit Ratings
YASUDA TRUST: Fitch Downgrades Credit Ratings

K O R E A

BYUCKSAN BUSINESS: Three Affiliates Named as Workout Targets
DUREA AIR: Court Gives Okay for Company Liquidation
HANNAM INVESTMENT: Requests Suspension to Stop Run on Deposits
HYUNDAI MOTOR: Losses Lead to Shuttering Strike-Hit Plant
LG SEMICONDUCTOR: Reports Won 249 Billion 6-Month Loss
NK TELECOM: Applies for Creditor Reconciliation
PEERES COSMETICS: Named as a Workout Target
SAMSUNG PHARMACEUTICAL: Completes Creditor Reconciliation
SHINSEGYE FACTORING: Factoring Company Reported Insolvent
YOUNGJIN PHARMACEUTICAL: Completes Creditor Reconciliation

M A L A Y S I A

FE RERIGERATION: Members' Voluntary Winding-Up
METRO JUARA: Members' Voluntary Winding-Up
S.A. ANALYST: Members' Voluntary Winding-Up
SOUTH FIELDS: Members' Voluntary Winding-Up
URBAN MEDIA: Members' Voluntary Winding-Up
WOOILY MOTORS: Winging-Up Petition Presented
WORLDBRIGHT CORPORATION: Members' Voluntary Winding-Up

P H I L I P P I N E S

DESERT FOX: SEC Grants Transport Firm 30-day Debt Relief Petition
PHILIPPINE AIRLINES: Wants Former Chairman in Receiver Committee

T H A I L A N D

BANGKOK EXPRESSWAY: Second Quarter Loss Reported
CENTRAL PAPER: Second Quarter Loss Reported
NIKKO HOTEL: Titiporn Sues for B7.7b of Future Damages
PETROASIA: No New Investors Come Forward
THAI GYPSUM: Second Quarter Loss Reported
THAI SATELLITE: Boosting Capital to Write-Off Loans


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


AWT HOLDINGS: AWT Plans Share Issue to Relieve Debt
---------------------------------------------------
According to the South China Morning Post, freight forwarder AWT
Holdings said it has found a way to relieve part of its debt
burden by proposing to issue a convertible note and new shares to
creditors in exchange for a standstill on its debts.

The company said it was in default of a combined $1.24 million in
interest charges to four note and bond holders, one of whom had
demanded an immediate payment of $12.13 million.

AWT plans to issue China Strategic Holdings a $7.33 million
three-year convertible note carrying an interest rate of 2 per
cent to refinance a loan of the same amount that expired on June
27. However, China Strategic said it was not interested in the
share conversion.

The Company said it had failed to pay China Strategic interest
charges totalling $339,468 by the deadline. It owed employees,
suppliers and a former landlord $7.8 million in a debt to be
offset by shares which the company plans to issue by 12.5
million, 1.47 per cent of enlarged share capital, to former
landlord Toxion Development. It plans to issue 26.58 million
shares, 3.07 per cent of enlarged share capital, to seven
employees and four suppliers. The shares will be sold at 20 cents
each, a 900 per cent premium over the August 13 closing price of
2 cents.


CA PACIFIC: Liquidators Find HK$500m Shortfall at CA Pacific
------------------------------------------------------------
According to the South China Morning Post, liquidators of CA
Pacific Securities and its margin-finance arm CA Pacific Finance
said former clients are likely to receive compensation before the
second half of next year, due to complicated legal difficulties
that arose in the process of the liquidation.

Liquidators found there was a shortfall of $500 million from the
$1.4 billion of securities meant to be held by the companies on
behalf of clients, which means clients will have to rely on a
compensation package.

According to the Hong Kong Standard, liquidators said that
specialist leading London counsels have advised that the
fundamental question of whether clients have proprietary claims
or any contractual claims need to be determined by an application
to the High Court and the application will be determined before
the end of 1998. Therefore a number of other difficult legal
issues will need to be resolved by making applications to the
High Court, so that it is unlikely that for distributions to be
made to clients and other creditors until the second half of 1999
at the earliest.

However liquidators will continue with the assistance of
committees of inspection appointed by the High Court wherever
possible to look for practical, effective solutions to the
problems in the liquidations.


FUJIAN GROUP: Property Developer Posts HK$15m Loss
--------------------------------------------------
Fujian Group, a Hong Kong listed company, posted a loss of
HK$15.61 million net loss for the year to March 31, against a
profit of HK$128.01 million a year ago.  The extent of loss was
eased by Fujian recording a net HK$50.15 million exceptional
gain.  The group registered an operating loss of HK$62.62 million
during the year on a 36.94 % drop in turnover from HK$380.35
million to HK$239.85 million.


GERMAN KITCHEN: Woes Mount with HK$30 million Claim
---------------------------------------------------
GKC Holdings has been struck another blow after a claim for
HK$30.2 million was filed at the High Court against German
Kitchen (China) as an alleged mortgage debt owed to First Pacific
Bank.  A further US$ 694,137 is being sought as part of money and
interest outstanding under the mortgage among First Pacific,
German Kitchen and Ocean Unit Enterprises, according to the
bank`s writ. According to the writ, HK$27.3 million, plus
US$632,000 is owed by German Kitchen in outstanding debts. Ocean
Unit owes a further HK$2.3 million.


ORIENT OVERSEAS: Reveals US$14.8 Million in Losses
--------------------------------------------------
Orient Overseas (International) Friday revealed a net loss of
US$14.8 million for the six months to June 30, its first loss
since 1993.  OOIL attributed the loss to the 2.5 year downturn in
the global shipping industry.  



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


GARUDA: Boeing Agrees to Lease Terminations
-------------------------------------------
The Hong Kong Standard says that financially strapped Garuda will
be allowed to cut short long-term aircraft leasing contracts and
to return five of the 17 planes it leases from Boeing, according
to the Jakarta Post.  The Minister of State Enterprises Tanri
Abeng said that Garuda expected a net profit of 500 billion
rupiah in 1999 against this year's projected loss of 3.25
trillion rupiah, as a result of slashed leasing costs, re-
negoitation of debt and restructuring.


=========
J A P A N  
=========


LONG TERM: Fitch Downgrades Credit Ratings; Future Unclear
----------------------------------------------------------
The Asian Wall Street Journal reported that Fitch IBCA has
lowered the individual rating for Long Term Credit Bank of Japan
from D/E to E.  This ratings downgrade, Fitch said, reflects the
continuing deterioration of the Japanese economy and its negative
effect on the financial condition of the bank.  

Japanese officials, Reuters says, remain uncertain over what to
do with the ailing Long-Term Credit Bank of Japan while analysts
say the bank has only two options -- collapse or merge.  With the
government's repeated promises to shake out an increasingly  
fragile banking industry, market and international attention has
fallen on LTCB, seen as one of the sickest of the sick, Reuters
said.

In May, LTCB said it had 1.38 trillion yen ($9.4 billion) worth
of problem loans calculated under U.S. accounting models.  
Analysts tell Reuters that the government will likely opt for a
soft-landing scenario by injecting public money into LTCB in
order to help the bank dispose of bad loans and merge with
Sumitomo Trust & Banking Co Ltd.
A major newspaper, the Yomiuri Shimbun, reported on Monday that
LTCB was expected to unveil a sweeping restructuring programme
later this week at the earliest.  The programme would pave the
way for the government to unveil its full financial backing for
LTCB, including the injection of public money into the bank, the
report said.  But, Reuters reported, the news was quickly denied.  
"There is no truth to such a report," Obuchi said in parliament.

Kyodo reported Monday that, in fact, the Japanese government
plans to pump public money into the capital base of LTCB to  
facilitate its merger with Sumitomo Trust and Banking Co., citing
sources close to merger talks said Monday.  The government is
planning to inject public funds into the bank -- swamped with
heaps of bad loans -- in two installments, before and after the
merger, the sources said.  Financial analysts look for the merger
to take place next spring.  Sumitomo Trust has repeatedly said  
the merger is conditional on either LTCB or the government
disposing of LTCB's bad and problem loans.  Although LTCB
disclosed bad loans totaling 1,378.5 billion yen as of March 31,  
most analysts have said there may be large amounts of hidden
nonperforming assets in the bank's loan portfolio.  


MATSUI TRUST: Fitch Downgrades Credit Ratings
---------------------------------------------
The Asian Wall Street Journal reported that Fitch IBCA has
lowered the individual rating for Matsui Trust & Banking from C/D
to D and its long-term rating from A- to BBB+. This ratings
downgrade, Fitch said, reflects the continuing deterioration of
the Japanese economy and its negative effect on the financial
condition of the bank.  


MITSUBISHI TRUST: Fitch Downgrades Credit Ratings
-------------------------------------------------
The Asian Wall Street Journal reported that Fitch IBCA has
lowered the individual rating for Mitsubishi Trust & Banking from
F1 to F2 and its long-term rating from A to A-.  This ratings
downgrade, Fitch said, reflects the continuing deterioration of
the Japanese economy and its negative effect on the financial
condition of the bank.  


SHOWA PLASTICS: Seeks Court Protection from Creditors
-----------------------------------------------------
Japanese plastics maker Showa Plastics Co. Ltd. became the latest
casualty of the faultering Japanese economy Friday when it sought
court protection from its creditors.  Showa pointed to a heavy
financial burden caused by business expansion overseas.

According to The Nihon Keizai Shimbun Saturday morning edition,
Showa Plastics Co. filed for protection from creditors with the
Osaka District Court on Friday after amassing debts of 17.76
billion yen.  Two Japanese affiliates of the midsize maker of
plastics for electronic equipment have also filed for court
protection.

The rapid expansion of business operations, mainly in Asia, left
the three firms financially overextended. They ran out of funds
after being refused fresh loans from financial institutions as
Japanese and other Asian financial markets went into a tailspin.

Showa Plastics supervises the Japanese operations of the Showpla
group of Singapore.  It owns a little over 33% of Showpla Asia
Ltd. and is the largest shareholder in the Singapore company,
whose stock was listed on the foreign stock section of the Osaka
Securities Exchange in August 1997.

Bloomberg reported Monday that shares in Asahi Chemical Industry
Co. (3407 JP ) fell 12 yen to 456 after news that Showa Plastics
filed for bankruptcy protection last week.  Asahi, a maker of
synthetic fibers and chemicals, Bloomberg explained, is a
supplier to Showa and also owns a 15 percent stake in the
company.


SUMITOMO TRUST: Fitch Downgrades Credit Ratings
-----------------------------------------------
The Asian Wall Street Journal reported that Fitch IBCA has
lowered the individual rating for Sumitomo Trust & Banking from
C/D to D, its long-term rating from A to A-, and its short-term
rating from F1 to F2.  This ratings downgrade, Fitch said,
reflects the continuing deterioration of the Japanese economy and
its negative effect on the financial condition of the bank.  


TOYO TRUST: Fitch Downgrades Credit Ratings
-------------------------------------------
The Asian Wall Street Journal reported that Fitch IBCA has
lowered the individual rating for Toyo Trust & Banking from C/D
to D and its long-term rating from BBB+ to BBB.  This ratings
downgrade, Fitch said, reflects the continuing deterioration of
the Japanese economy and its negative effect on the financial
condition of the bank.  


YASUDA TRUST: Fitch Downgrades Credit Ratings
---------------------------------------------
The Asian Wall Street Journal reported that Fitch IBCA has
lowered the individual rating for Yasuda Trust & Banking from D/E
to E and its long-term rating from BBB+ to BBB.  This ratings
downgrade, Fitch said, reflects the continuing deterioration of
the Japanese economy and its negative effect on the financial
condition of the bank.  


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


BYUCKSAN BUSINESS: Three Affiliates Named as Workout Targets
------------------------------------------------------------
The Korea Herald reports that three affiliates of the Byucksan
Business Group have been selected to undergo the restructuring
program (called the "workout") by the Commercial Bank of Korea,
their major creditor bank.  The three subsidiaries include:

         Byucksan Corporation,
         Byucksan Engineering and Construction Co., and
         Dongyang Products Co. Ltd.

The three subsidiaries will be given a three month grace period
in payment of negotiable notes.  However, the Korea Herald states
that they will be declared bankrupt if they fail to pay
commercial bills for goods that they bought.  

The workout procedure is aimed at helping firms hit by temporary
liquidity shortages to regain financial health and
competitiveness through debt relief and creditor offered
restructuring programs.  It is also hoped to reduce banks'
non-performing loans by improving borrowers' debt payment
capabilities.  However, the workout can also result in the
shareholders being asked to reduce capital and the disposal of
unprofitable assets and subsidiaries.  Furthermore, there is a
compulsory shake-up of the top management of the "workout
conglomerates".


DUREA AIR: Court Gives Okay for Company Liquidation
---------------------------------------------------
According to the Korean language Maeil Kyungje's Business Brief
section, the Durea Air Metal Company was allowed by the Seoul
District Court to start its liquidation plan.


HANNAM INVESTMENT: Requests Suspension to Stop Run on Deposits
--------------------------------------------------------------
Both the Hannam Investment Securities Company (also translated as
the Hannam Investment Trust Company) and its subsidiary Hannam
Investment Management Company suspended operations for two
months.  

The Korea Times reported that Hannam itself applied for the
suspension voluntarily because of a massive run on customers'
deposits.  Under the suspension order, Hannam's clients will be
barred from withdrawing their deposits, estimated to have a value
of $1.9 billion until October 13.  Deposits at investment trusts
firms such as Hannam are not insured by the government's deposit
insurance program.

Hannam was previously one of Korea's strongest provincial
investment trust firms before it was taken over by the Keopyung
Group in March of this year.  The securities firm was founded in
1989 and has 36 branches throughout the nation.  In June of 1997,
it was transformed from an investment trust company into a stock
brokerage.  Its paid-in capital is estimated to be at 100 billion
won, with Korea Tungsten, a core unit of the Keopyung Group
holding a 48.9 percent stake in Hannam.  However, according to
the Korea Times, the trust company was much weakened due to the
alleged misappropriation of customer deposits by the financially
troubled Keopyung Group.  

Hannam's financial health has worsened considerably after the
bankruptcy of the Keopyung Group in May, and the subsequent
listing of Korea Tungsten on the June 19 list of 55 nonviable
firms that were subject to immediate liquidation as creditor
banks are to stop providing them with new loans.  This list was
generated at the request of the Financial Supervisory Commission
by the nation's 26 commercial banks which classified their
business loan-clients into three groups - normal, viable, and
nonviable.


HYUNDAI MOTOR: Losses Lead to Shuttering Strike-Hit Plant
---------------------------------------------------------
Hyundai Motor Co. said it swung to a net loss of 1.21 billion won
during the first half of the year from a net profit of 28.16
billion won a year earlier.  The loss resulted from repeated
strikes, said an official of South Korean auto maker.

Dow Jones reported this weekend that South Korea's largest
automaker, Hyundai Motor Co., said it will keep production
facilities closed indefinitely in response to ongoing strikes by
workers protesting layoffs.  "The company concluded that efforts
to resume normal operations have failed because of workers'
illegal occupation of the plant's facilities, destruction and
violence," Park Byung-jae, president of Hyundai Motor said,
according to a company spokesman interviewed by Dow Jones.

The Hyundai Group unit's main plant, located in the southeast
city of Ulsan, has been idle since July 20, when workers went on
strike protesting the company's plan to lay off 1,598 workers.
The company handed out the pink slips July 31, which worsened the
labor unrest at Ulsan.  Striking workers have overcome the plant,
camping out around assembly lines and disrupting production.


LG SEMICONDUCTOR: Reports Won 249 Billion 6-Month Loss
------------------------------------------------------
Reuters reports that LG Semicon recorded a 249.1 billion won net
loss for the January-June period from a 16 billion won profit in
the same period last year.


NK TELECOM: Applies for Creditor Reconciliation
-----------------------------------------------
According to the Korean language Maeil Kyungje's Business Brief
section, NK Telecom Company has applied to the Seoul District
Court for an approval to start a creditor reconciliation
procedure.


PEERES COSMETICS: Named as a Workout Target
-------------------------------------------
The Korea Herald reports that Peeres Cosmetics has been selected
to undergo the restructuring program (called the "workout") by
the Commercial Bank of Korea.  Peeres is the sixth largest
company in net assets among the domestic cosmetic industry, and
has been reportedly suffering from a liquidity shortage.

A general meeting of Peeres Cosmetic's creditor institution is
scheduled for August 26, when a final decision will be made on
the outline of the debt restructuring plans for the company.

The workout procedure is aimed at helping firms hit by temporary
liquidity shortages to regain financial health and
competitiveness through debt relief and creditor offered
restructuring programs.  It is also hoped to reduce banks'
non-performing loans by improving borrowers' debt payment
capabilities.  However, the workout can also result in the
shareholders being asked to reduce capital and the disposal of
unprofitable assets and subsidiaries.  Furthermore, there is a
compulsory shake-up of the top management of the "workout
conglomerates".


SAMSUNG PHARMACEUTICAL: Completes Creditor Reconciliation
---------------------------------------------------------
The Seoul District Court advertized in the Korean language Maeil
Kyungje that the Samsung Pharmaceutical Company has completed its
creditor reconciliation procedure.  The company's address is 199-
6 Mochin-dong, Kwangjin-gu, Seoul and the president is Mr. Kim
Young-chol.


SHINSEGYE FACTORING: Factoring Company Reported Insolvent
---------------------------------------------------------
According to the Korean language Maeil Kyungje's Business Brief
section, Shinsegye Factoring Company, NK Digital Company's
guarantor, announced insolvency with unpaid bills amounting to
980,000,000 won.  


YOUNGJIN PHARMACEUTICAL: Completes Creditor Reconciliation
----------------------------------------------------------
Youngjin Pharmaceutical Company took out a quarter-page
advertisement in the Korean language Maeil Kyungje announcing
that it had completed its creditor reconciliation procedure.


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


FE RERIGERATION: Members' Voluntary Winding-Up
----------------------------------------------
A special resolution passed at an EGM on 10.8.1998 had resolved
that FE REFRIGERATION EQUIPMENTS SDN. BHD. be wound up
voluntarily.  Creditors of the company are to submit their
claims/debts before 12.9.1998.


METRO JUARA: Members' Voluntary Winding-Up
------------------------------------------
A special resolution passed at an EGM on 3.8.1998 had resolved
that METRO JUARA SDN. BHD. be wound up voluntarily.  Creditors of
the company are to submit their claims/debts before 2.9.1998.


S.A. ANALYST: Members' Voluntary Winding-Up
-------------------------------------------
A special resolution passed at an EGM on 11.8.1998 had resolved
that S.A. ANALYST SDN. BHD. be wound up voluntarily.  Creditors
are to submit their claims/debts before 18.9.1998.


SOUTH FIELDS: Members' Voluntary Winding-Up
-------------------------------------------
A special resolution passed at an EGM on 12.8.1998 had resolved
that SOUTH FIELDS SDN. BHD. be wound up voluntarily.  Creditors
of the company are to submit their claims/debts before 16.9.1998.


URBAN MEDIA: Members' Voluntary Winding-Up
------------------------------------------
A special resolution passed at an EGM on 12.8.1998 had resolved
that URBAN MEDIA SDN. BHD. be wound up voluntarily,  Creditors of
the company are to submit their claims/debts before 16.9.1998.


WOOILY MOTORS: Winging-Up Petition Presented
--------------------------------------------
Ong Siaw Ng & Lim Sai Gim, both trading as Jitt Soon Auto Spares
Co. had on 7.7.1998 presented a winding up petition against
Wooily Motors Sdn. Bhd.  The petition is directed to be heard on
20.10.1998


WORLDBRIGHT CORPORATION: Members' Voluntary Winding-Up
------------------------------------------------------
A special resolution passed at an EGM on 11.8.1998 had resolved
that WORLDBRIGHT CORPORATION SDN. BHD. be wound up voluntarily.  
Creditors of the company are to submit their claims/debts before
18.9.1998.

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


DESERT FOX: SEC Grants Transport Firm 30-day Debt Relief Petition
-----------------------------------------------------------------
The Securities and Exchange Commission  (SEC) has granted the
petition of cash-strapped bus firm Desert Fox Transport Corp. for
a temporary relief from creditors. The SEC granted the company
only a 30-day breathing spell from its debt payments. The order
was issued last August 11. The bus firm recently filed a petition
before the SEC for the suspension of payments for debts amounting
to 208 million Philippine pesos (PhP). The SEC also set a hearing
on September 16 for the creation of a management committee to
help the company get back on its feet. The firm said its
financial woes can be traced as early as 1995 when about 25 of
its bus units broke down, "causing not only days but months of
downtime, resulting in petitioner's failure to pay the monthly
amortization due the financing institutions" it owed. Its
problems were aggravated when the Land Transportation and
Franchising Regulatory Board suspended its operations for one
month, resulting in losses of about PhP15 million. (BusinessWorld
17-Aug-1998)


PHILIPPINE AIRLINES: Wants Former Chairman in Receiver Committee
----------------------------------------------------------------
The Philippine Airlines,  Inc. (PAL) has  submitted the name  of
former PAL chief Roman Cruz, Jr. to  the Securities and Exchange  
Commission (SEC) as its nominee to  replace  its former  
president  and chief  executive  officer Jose "Pepeton" Antonio
Garcia in the SEC-appointed interim receiver committee tasked
to draft the rehabilitation plan for the ailing firm.

In a motion filed with the SEC last Wednesday, PAL counsel
Estelito Mendoza said since Mr. Cruz is a former PAL president
and CEO, his "knowledge of the business and operations of
petitioner will be invaluable in the preparation of the
rehabilitation plan."

PAL was forced to look for a replacement for Mr. Garcia after his
announcement last July 22 he would be resigning as PAL president
and board member.

Meanwhile, it was back to square one at the negotiations between
PAL and its flight attendant's union.  The parties met anew last
night at the National Conciliation and Mediation Board (NCMB) in
the hope that Department of Labor and Employment officials will
be able to effectively mediate between the two parties.
BusinessWorld sources said the management had presented a new
proposal to the representatives of the Flight Attendants and
Stewards Association of the Philippines (FASAP).  (BusinessWorld
14-Aug-1998)


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


BANGKOK EXPRESSWAY: Second Quarter Loss Reported
------------------------------------------------
Bangkok Expressway Public Company Limited (SET:BECL) reports a
249 million Baht loss for the second quarter ending June 30,
1998, bringing its 6-month loss to $383 million Baht.


CENTRAL PAPER: Second Quarter Loss Reported
-------------------------------------------
Central Paper Industry Public Company Limited (SET:CPICO) reports
a 121 million Baht loss for the quarter ending June 30, 1998,
bringing its 6-month loss to 222 million Baht.  


NIKKO HOTEL: Titiporn Sues for B7.7b of Future Damages
------------------------------------------------------
Titiporn Nam-ngern, the major Thai shareholder of Hotel Nikko
Mahanakorn, has filed a lawsuit against the management chain
Nikko Hotel Management (Thailand) Co claiming unrealised damages
of 7,700 million baht for losses she expects the hotel will incur
from mismanagement over the next 12 years.

The legal action is Mrs Titiporn's latest attempt to terminate
the management contract with Nikko Hotel Management (Thailand)
which was renewed for 12 years last March despite her opposition.
Mrs Titiporn's company, Bangkok Thani Hotel Co Ltd, holds a 45%
stake in the hotel, the Bangkok Bank holds 10% and Japan Asia
Investment, a subsidiary of Japan Airlines, holds the remaining
45%.

In the lawsuit filed her lawyers, Thai Niti Law Office &
Consultants, Mrs Titiporn alleges that inefficient management by
Nikko Hotel Management (Thailand) during the past three years had
led to small profits.  She said the management's decision to cut
room rates to between 495 to 578 baht a night for Taiwanese tour
groups and Japan Airlines crew members was to blame as it was
below the operating cost of 1,600 baht a night.  

"During the past three years, we received just 20 million baht in
revenue from the hotel. This is not enough to pay the loan. We
have to shoulder additional 1,150 million baht debt due to baht
depreciation. Now our debt has risen to more than three billion
baht," Mrs Titiporn said.

The hotel's creditors Bangkok Bank, Bank of Asia, and Union Asia
Finance attempted to sue the company under the Bankruptcy Law,
claiming Bangkok Thani Hotel Co, had not paid interest on its 3.4
billion baht loan for the past 18 months.  But the Civil Court
this week, ruled against the creditors' request to rehabilitate
the business, reasoning that the company had enough asset to
cover its debts.  (Bangkok Post 15-Aug-1998)


PETROASIA: No New Investors Come Forward
----------------------------------------
CHAROEN Pokphand Group and the Petroleum Authority of Thailand
(PTT) have agreed to shut down the loss-making joint-venture
PetroAsia after failing to attract new investors, according to a
weekend report appearing in The Nation.  

PTT deputy governor for corporate finance and accounting Pichai
Chunhavajira said the decision was made after oil retailer
PetroAsia failed to reach an agreement with Atlantic Richfield Co
Ltd (Arco) to become a new partner. After Arco withdrew from the
deal, no other interested parties could be found.  Pichai said
the PTT will submit a proposal to the Industry Ministry and the
Cabinet after completing the closure plan. PetroAsia has
accumulated losses of Bt300 million from its 37 petrol stations.

According to the plan, the PTT will keep selected PetroAsia
stations as its own while others will be sold off. PetroAsia may
call for 25 per cent of unpaid capital to pay its debts if the
asset sale is not enough. PetroAsia has registered capital of
Bt500 million, of which PTT and CT each hold a 35 per cent stake,
while China-based Sinopec holds the remaining 30 per cent.
In addition, each shareholder must re-employ its executives and
senior staff from PetroAsia.  

A CP official earlier admitted the company is restructuring its
business empire to concentrate on core businesses after suffering
from the regional economic crisis. CP also decided to sell off
its assets in China and the United States.

Pichai said besides PetroAsia, PTT is considering whether it
should proceed with its 40 per cent investment in Thai LNG Power
Co Ltd. Although TLPC already paid existing shareholder Rayong
Power Co Ltd for a licence fee, there have been changes.
As a result of the battered economy, independent power producer
(IPP) projects have been suspended for another three years due to
reduced power consumption.

The PTT has three alternatives. It could shut down the plant and
offer shares to interested investors.   Moreover, PTT also
suffered a loss by its lubricant subsidiary Thai Lube Base Co
Ltd. The PTT is considering debt restructuring as well as a
production adjustment for the firm.  Pichai added that PTT holds
a 30 per cent stake in the lubricant company while Thai Oil holds
a 38 per cent stake. Both are ready to sell their shares if
investors are interested.


THAI GYPSUM: Second Quarter Loss Reported
-----------------------------------------
Thai Gypsum Products Public Company Limited (SET:TGP) posted a
437 million Baht loss for the second quarter ending June 30,
1998, bringing its 6-month loss to 506 million Baht.


THAI SATELLITE: Boosting Capital to Write-Off Loans
---------------------------------------------------
Thai Satellite Telecommunication (TSC) will increase its
registered capital from one billion baht to two billion to write
off its loans, according to a report in yesterday's edition of
the Bangkok Post.  Piyabutr Vasutara, TSC president, told the
Post that the company has a loan of US$50 million due in 2001.
As TSC did not want to shoulder the high interest burden, it
decided to increase its capital so it could pay back the loan
over next year. The capital would be raised from the selling of
shares to both local and overseas investors.



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.  

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