---

T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Wednesday, September 2, 1998, Vol. 1, No. 135

                    Headlines


C H I N A   &   H O N G   K O N G

BOPA LIMITED: Winding-up notice
CHAIFA HOLDINGS: Exceptional loss hits Chaifa Holdings
CHINA INTERNATIONAL TRUST: Moody's downgrades Chinese ITICs
FINGLADE LIMITED: Winding-up petition
GOOD INTERNATIONAL LIMITED: Winding-up notice

HARBOUR RING: Exceptional item put Harbour Ring in red
HOMKO INTERNATIONAL FINANCE: Winding-up petition
HYSAN DEVELOPMENT: Downgraded by Moody's
KOBO INTERNATIONAL: Winding-up petition
KUNG LI TRANSPORTATION: Winding-up petition

P&C DESIGN LIMITED: Winding-up petition
PILOT GOAL LIMITED: Winding-up notice
S. MEGGA INTERNATIONAL: S. Megga requests share trade
SIMPSON COMMUNICATIONS: Winding-up notice
UDL HOLDINGS: Provisions push UDL to $1.6b loss

UNION SCORE INDUSTRIES: Winding-up petition
WANG ON GROUP: Results announcement


I N D O N E S I A

ASTRA INTERNATIONAL: Proposes debt rollover scheme
DHARMALA INTIUTAMA: Japanese banks declare bonds in default
GARUDA: Plans to sell maintenance facility
INDOCEMENT: Restructuring efforts in doubt
PT VICTOR JAYA RAYA: Suharto's son comes under scrutiny

PERUSAHAAN LISTRIK NEGARA: Results announcement
PUTRA SURYA MULTIDANA: Results announcement
SEMEN CIBINONG: Restructuring efforts in doubt


J A P A N  

CITIZEN WATCH: Downgraded to 'neutral minus'
DAIMARU: Daimaru changes its forecast to a group net loss
JAPAN AIRLINES: Announces syndicated loan
LONG TERM CREDIT: LTCB fails to quell bankruptcy fears
SAKURA BANK: Sakura in $16b call for capital


M A L A Y S I A

IMEXPORT SDN BHD: Voluntary winding up
PERSTIMA: Informs KLSE of payment defaults
S.H. COATINGS (M) SDN BHD: Voluntary winding up
SODA MARKETING SDN BHD: Winding-up petition
SYARIKAT FIVEWAY STEEL SDN BHD: Winding-up petition

TENAGA GEMILANG SDN BHD: Voluntary winding up


P H I L I P P I N E S

NATIONAL STEEL: Results announcement
PHILIPPINE AIRLINES: Task force named to resolve problems
RFM CORP: Confirms delisting of subsidiaries


S I N G A P O R E

FALMAC: Results announcement
IPCO INTERNATIONAL: Makes provisions


T H A I L A N D

BANGKOK THANI HOTEL: Conflict threatens collapse
HANA MICROELECTRONICS: SET grants trading status
P-GROUP HOLDING: Memorandum on connected transactions
PHATRA THANAKIT: Announces details of purchase
SUPALI PLC: Statements not in compliance

THAI INVESTMENT AND SECURITIES: Results announcement
UNITED COMMUNICATION: Motorola sells stake in shareholder           


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

BOPA LIMITED: Winding-up notice
-------------------------------
A winding-up order notice is hereby given that Bopa Limited
is undergoing a companies winding-up proceedings (No 418 of
1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is on August 19, 1998. The date of presentation of
petition was June 16,1998.    


CHAIFA HOLDINGS: Exceptional loss hits Chaifa Holdings
------------------------------------------------------
Chaifa Holdings has announced a HK$58.73 million net loss
for the year ending March 31. The exceptional loss
represents a provision for doubtful debts set aside due to
the economic crisis. The company said it suffered a
HK$67.25 million exceptional loss. The group recorded an
operating profit of HK$7.66 million for the year compared
with the previous HK$39.63 million profit registered a year
ago. Turnover shrank 16.3% to HK$302.02 million.  


CHINA INTERNATIONAL TRUST: Moody's downgrades Chinese ITICs
-----------------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has lowered its ratings on China
International Trust and Investment Corporation (CITIC) and
at least 4 other international trust and investment
corporations (or ITICs). The downgrade reflects the
continuing deteriorating fundamentals and the worsening
operating environment of government run ITICs in China.  

The report also mentioned that there are signs that the
ITICs are losing government support. ITICs act as the
investment arm of the government (usually a province or a
city), although CITIC acts on the behalf of the Chinese
central government.

CITIC's long-term foreign currency debt rating was changed
from Baa1 to Baa2, and (according to a similar report in
the Korea Herald) its financial strength rating was moved
from D+ to D.


FINGLADE LIMITED: Winding-up petition
-------------------------------------
A petition for the winding up of Finglade Limited was
presented to the High Court on August 13 by the Hongkong
and Shanghai Banking Corporation, No. 1 Queen's Road,
Central, Hong Kong. And the said petition is directed to be
heard before the court at 9:30 am on Sept. 9, and any
creditor or contributory of the said company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by solicitors for the
petitioner, Johnson Stokes & Master, 18th floor, Prince's
Bldg., 10 Chater Road, Central, Hong Kong on payment of the
regulated charges for the same.


GOOD INTERNATIONAL LIMITED: Winding-up notice
---------------------------------------------
A winding-up order notice is hereby given that Good
International Limited is undergoing a companies winding-up
proceedings (No 482 of 1988) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on August 28, 1998. The date of
presentation of petition was June 16, 1998.    


HARBOUR RING: Exceptional item put Harbour Ring in red
------------------------------------------------------
Harbour Ring International Holdings, a Hong Kong toy
manufacturer, has plunged into the red with a HK$10.26
million exceptional loss during the first half of the year.

The company, which manufacturers Teenage Mutant Ninja
Turtles, said the interim result reached HK$9.3 million
profit a year ago. The exceptional item represents
provision against loss on stock and foreign currency
investment. The company blamed the difficult operating
environment for the unsatisfactory performance.


HOMKO INTERNATIONAL FINANCE: Winding-up petition
-----------------------------------------------
A petition for the winding up of Homko International
Finance (Holdings) Limited was presented to the High Court
on August 10 by the Hongkong and Shanghai Banking
Corporation of No. 1, Queen's Road Central, Hong Kong. And
the said petition is directed to be heard before the court
at 9:30 am on Sept. 9, and any creditor or contributory of
the said company desirous to support or oppose the making
of an order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by
solicitors for the petitioner, Johnson Stokes & Master Of
18th Floor, Prince's Bldg., 10 Chater Road, Central, Hong
Kong on payment of the regulated charges for the same.


HYSAN DEVELOPMENT: Downgraded by Moody's
----------------------------------------
CreditWire reports Standard & Poor's today downgraded its
corporate credit rating on Hysan Development Co. Ltd. and
its guaranteed issue to triple-'B'-plus from single-
'A'-minus. The rating outlook is negative and it is removed
from CreditWatch, where it was placed on June 23, 1998. The
downgrade reflects Hysan's growing financial risk, which
stems from its increased debt burden and from pressure on  
earnings related to the Hong Kong property market downturn.

The current rating also continues to reflect the strength
of Hysan's core property leasing business. The company,
which is the largest landlord in the prime Causeway Bay
area, holds a portfolio of high quality buildings. Standard  
& Poor's expects that Hysan will continue to benefit from
its leases, which are relatively longer than the industry
average, and its flexibility in rental arrangement.


KOBO INTERNATIONAL: Winding-up petition
---------------------------------------
A petition for the winding up of Kobo International (H.K.)
Limited was presented to the High Court on  August 13  by
the Hongkong and Shanghai Corporation of No. 1, Queen's
Road Central, Hong Kong. And the said petition is directed
to be heard before the court at 9:30 am on Sept. 9, and any
creditor or contributory of the said  company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by soliciors for the
petitioner, Johnson Stokes & Master, 18th Floor, Prince's
Bldg., 10 Chater Road, Central, Hong Kong on payment of the
regulated charges for the same.


KUNG LI TRANSPORTATION: Winding-up petition
-------------------------------------------
A petition for the winding up of Kung Li Transportation
Limited was presented to the High Court on  August 5 by
Chan See Kin Of Room 1513, Tsui Mui House, Tsui Ping
Estate, Kwun Tong, Kowloon, Hong Kong. And the said
petition is directed to be heard before the court at 9:30
am on Sept. 16, and any creditor or contributory of the
said  company desirous to support or oppose the making of
an order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by Tam
Lee Po Lin, Nina, for Director of Legal Aid, 27th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong on
payment of the regulated charges for the same.


P&C DESIGN LIMITED: Winding-up petition
---------------------------------------
A petition for the winding up of  P & C Design Limited  was
presented to the High Court on  August 11 by Lam Fat Sum of
Room 205, Yue Tai House, Yue Wan Estate, Chai Wan, Hong
Kong. And the said petition is directed to be heard before
the court at 9:30 am on Sept. 16, and any creditor or
contributory of the said company desirous to support or
oppose the making of an order on the said petition may
appear at the time of hearing by himself or his counsel for
that purpose, and a copy of the petition will be furnished
to any creditor or contributory of the said company
requiring the same by Tam Lee Po Lin, Nina, for Director of
Legal Aid, 27th Floor, Queensway Government Offices, 66
Queensway,  Hong Kong on payment of the regulated charges
for the same.


PILOT GOAL LIMITED: Winding-up notice
-------------------------------------
A winding-up order notice is hereby given that Pilot Goal
Limited is undergoing a companies winding-up proceedings
(No 414 of 1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is on August 28, 1998. The date of presentation of
petition was June 16, 1998.    


S. MEGGA INTERNATIONAL: S. Megga requests share trade
-----------------------------------------------------
According to the SCMP, S. Megga International Holdings has
made an application to the stock exchange for the
resumption of trading in its shares today after a nine-
month suspension.

As of June 30, the group's unaudited consolidated net asset
deficiency was about $36 million, and the amount owed to
creditor banks and convertible not holders was $419
million.


SIMPSON COMMUNICATIONS: Winding-up notice
-----------------------------------------
A winding-up order notice is hereby given that Simpson
Communications Limited is undergoing a companies winding-up
proceedings (No 415 of 1988) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on August 19, 1998. The date of
presentation of petition was June 16,1998.    


UDL HOLDINGS: Provisions push UDL to $1.6b loss
-----------------------------------------------
According to the SCMP, engineer UDL Holdings and subsidiary
KEL Holdings, hit by a rash of provisions, have reported a
joint $2.05 billion attributable loss in the year to March
31.

Auditors placed a disclaimer on their accounts because of
limitations on the scope of the audit. The auditors also
modified their reports to include comments on uncertainties
arising from litigation against the companies and
termination of certain employment contracts.

UDL reported a $1.68 billion attributable loss compared
with $72.03 million profit for the previous year. KEL fared
better with $560.68 million attributable loss compared with
$52.06 million profit previously.

UDL had exceptional losses of $1.45 billion including
numerous provisions, mostly for contract work in progress,
losses linked to contracts terminated and the decline in
recoverable amounts from floating craft and vessels. KEL
incurred a $599.46 million exceptional loss from similar
problems.

The group's chairman said that by failing to maintain a
mutual understanding and trust between the group and
clients, banks as well as trade creditors, small mishaps
developed and accumulated into serious results.


UNION SCORE INDUSTRIES: Winding-up petition
-------------------------------------------
A petition for the winding up of Union Score Industries
Limited was presented to the High Court on July 22 by the
petitioner Union Score Industries Limited of Flat B-D,
12/F., Houston Industrial Centre, 32-40 Wang Lung Street,
Tsuen Wan, New Territories. And the said petition is
directed to be heard before the court at 9:30 am on Sept.
16, and any creditor or contributory of the said  company
desirous to support or oppose the making of an order on the
said petition may appear at the time of hearing by himself
or his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by solicitors for the
petitioner, W.K To & Co., of 11th floor, Wheelock House, 20
Pedder Street, Central, Hong Kong on payment of the
regulated charges for the same.


WANG ON GROUP: Results announcement
-----------------------------------
Wang On Group said its net loss plunged to HK$67.69 million
from HK$17.74 million for the financial year to March
31,1998. Turnover for the year surged 228% from HK$283.48
million to HK$929.18 million during the period. The company
suffered an operating loss of HK$54.5 million for the year.
Earnings per share fell from 20 cents to 9.4 cents with no
exceptional item being recorded.   


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

ASTRA INTERNATIONAL: Proposes debt rollover scheme
--------------------------------------------------
According to the SCMP, a source close to the company said
that Indonesia's largest car maker, Astra International,
has proposed a debt-rollover scheme to its creditors which
would allow it to pay only interest over a four-year grace
period, which is unlike the government-launched Indonesian
debt restructuring scheme. The source said Astra's
management met creditors in Singapore last month, and the
talks would continue in October.

According to a Reuters report in the Hong Kong Standard,
analysts said the company is expected to suffer further
hardship this year. They said weak vehicle demand, heavy
financing charges and negative spreads at its finance unit
would continue hurting the conglomerate this year, but its
long term performance depends above all on whether it can
successfully reschedule crushing foreign debt.

Astra's key vehicle and other non financial units posted an
operating profit of just 390.1 billion rupiah in the first
half of 1998, but faced financing charges of 8.71 trillion
rupiah. Its unrealised forex loss was seven million rupiah.


DHARMALA INTIUTAMA: Japanese banks declare bonds in default
-----------------------------------------------------------
Sanwa Bank and five other Japanese banks decided to declare
in default samurai bonds issued by Indonesia's Dharmala
Intiutama International, an official at Sanwa said. The
official said Sanwa had informed Dharmala Intiutama that a
majority of creditors requested the bonds be declared in
default before a scheduled creditors' meeting. The meeting
was originally scheduled for September 1 after the
Indonesian firm failed to meet debt obligations in July.


GARUDA: Plans to sell maintenance facility
------------------------------------------
Asia Pulse reports Garuda Indonesia, the country's flag
carrier, will sell its maintenance facility (GMF) at
Jakarta's Soekarno-Hatta International Airport in a bid to
obtain funds to service debts and finance operations.  

Garuda president Robby Djohan said the airline had a debt
burden totalling $US400 million of which $US285 million had
to be repaid within the next five years.

"Garuda needs to concentrate on its core business. That's
why we are going to sell the GMF, which is worth $US300
million and are also planning to find buyers for five of
our Boeing planes," he said.


INDOCEMENT: Restructuring efforts in doubt
------------------------------------------
According to a Reuters report on the SCMP, an analyst has
advised investors not to buy Semen Cibinong and Indocement
pending the finalisation of the companies' debt
restructuring plans.

Cibinong and Indocement were facing considerable problems
due to large foreign debts incurred during the hasty
expansion of previous years.

The analyst said Cibinong and Indocement should sell their
assets, or invite new investors, to remove their existing
heavy foreign debts.

Indocement said it expects to complete a restructuring of
its debt by the end of the year, which is likely to involve
selling some of the company's non-core assets. It said it
was in talks with international cement firms on a strategic
alliance.

Indocement posted first half net income of 3.32 billion
rupiah compared with 262.56 billion during the first half
of last year.


PT VICTOR JAYA RAYA: Suharto's son comes under scrutiny
-------------------------------------------------------
The AP cites an Antara news agency report that a son of
former President Suharto might have to testify about
alleged wrongdoing in a multimillion-dollar loan deal.

Prosecutors say Sigit Harjojudanto, the eldest of Suharto's
three sons, was involved in soliciting a $9.5-million loan
allegedly to subsidize a real-estate project that was never
built.

Sigit is a shareholder in a real-estate company, PT Victor
Jaya Raya, that was supposed to build houses in the Sumatra
island city of Deli Serdang, said Bismar Manu, deputy chief
of the public prosecutor's office in North Sumatra  
province.

However, local residents reported in 1996 that no
construction crews ever appeared in the area earmarked for
development and nothing was built, Antara said.

The loan was issued by the state North Sumatra Development
Bank. Prosecutors are trying to find out what happened to
the money.


PERUSAHAAN LISTRIK NEGARA: Results announcement
-----------------------------------------------
Perusahaan Listrik Negara (PLN), Indonesia's state
electricity utility, yesterday announced a first-half net
loss of 14,991 billion rupiah. The loss compared with a
profit of 720.2 billion rupiah for the same period last
year. Net sales were at 6,466% up from the 5,175 billion
rupiah for the same period last year.


PUTRA SURYA MULTIDANA: Results announcement
-------------------------------------------
Putra Surya Multidana, an Indonesian motorcycle finance
company, dived into a 3.1-trillion rupiah first half loss
as costs associated with foreign debt rose on the collapse
of the rupiah. The loss, which works out 2,210 rupiah a
share, compares with a profit of 105 billion rupiah, or 192
rupiah a share, in the first half of last year.

Sales rose to 435.67 billion rupiah in the first half from
312.5 billion rupiah as expenses surges to 3,544 trillion
rupiah from 167.8 billion rupiah in the same period a year
ago.


SEMEN CIBINONG: Restructuring efforts in doubt
----------------------------------------------
According to a Reuters report on the SCMP, an analyst had
advise investors not to buy Indonesian firms Cibinong and
Indocement pending the finalisation of the companies' debt
restructuring plans.

Cibinong and Indocement were facing considerable problems
due to large foreign debts incurred during the hasty
expansion of previous years.

The analyst said Cibinong and Indocement should sell their
assets, or invite new investors, to remove their existing
heavy foreign debts.

Semen Cibinong has yet to release its first half results
and was unavailable for comment yesterday.


=========
J A P A N  
=========

CITIZEN WATCH: Downgraded to 'neutral minus'
--------------------------------------------
Bloomberg reports shares of Citizen Watch Co. fell 29 yen
to 976. The watch producer was downgraded to "neutral
minus" from "neutral" by analyst Hisashi Moriyama at New
Japan Securities.


DAIMARU: Daimaru changes its forecast to a group net loss
---------------------------------------------------------
Daimuru, a japanese retail company, now foresees a group
net loss of $500 million yen for the fiscal year through
Feb 28, 1999, worse than the one billion yen profit in its
prior outlook. In an effort to restructure its group
operations, the Japanese department store reported in June
that it plans to shut down some overseas operations in Hong
Kong and France and plans to pullout of its department
store venture.


JAPAN AIRLINES: Announces syndicated loan
-----------------------------------------
Japan Airlines plans to raise over US$400 million in the
U.S. through a syndicated loan involving about 20 Japanese,
U.S and European banks. The funds will be used to cover
operating expenses at businesses such as the airline's  
U.S. hotel chain. Industrial Bank of Japan and Chase
Manhattan Group will lead the syndicate, extending a credit
line of US$460 million. The carrier said JAL Capital Corp.,
the carrier's Delaware-based U.S. financial arm, will take
out the loan.


LONG TERM CREDIT: LTCB fails to quell bankruptcy fears
------------------------------------------------------
According to the SCMP, LTCB's president Katsunobu Onogi
told a parliamentary committee debating financial
stabilisation bills that the injection of public funds was
not aimed at letting LTCB survive but at saving the
financial system from collapsing.

He said the bank's management had tried to dispose of non-
performing assets but could not cope with it appropriately
as the speed demanded by markets was much faster than
expected.

He dismissed speculation that the bank's liabilities
exceeded assets, saying that LTCB had one trillion yen in
group capital and 780 billion yen in parent capital at the
end of March, against the 750 billion yen of bad loan
write-offs planned by Sept.

Last week LTCB said its own in-house assessment showed
risky loans to the tune of 2.82 trillion yen at the parent
level.

An official inspection is still under way.

Mr Onogi said the bank would push ahead with its
restructuring plans, including a reduction in salaries for
management. The bank's total payout for retired directors
in the year to March was 1.4 billion yen.

As part of its restructuring plan, LTCB has asked previous
presidents and directors who retired after 1989 to return
some of the allowances they had received.

According to a Reuters report on the Hong Kong Standard, Mr
Ohnogi gave more assurances yesterday that LTCB was not
insolvent.

Besides the above mentioned capital injection, the report
quotes Mr Ohnogi as saying that the planned disposal of
problem loans is estimated to total some 750 billion yen
and is therefore within the bank's capital. He said the
bank also had 350 billion yen worth of latent losses on
stock holdings as of last week, but it would still have
group-based capital of about 550 billion yen after a
planned bad loan disposal at the end of September.

Doubts linger as to whether the disposal would be enough,
given the massive size of the bank's total problem assets.


SAKURA BANK: Sakura in $16b call for capital
--------------------------------------------
According to the SCMP, Sakura Bank, the lowest rated and
weakest of Japan's city banks, yesterday announced that
members of its close-knit keiretsu group, including Toyota
Motors, Mitsui & Co., Mitsui Fudosan and other Mitsui
companies had agreed to inject it with 300 billion yen
of new capital.

The bank's president, Akishige Okada, said the money would
help the bank cover itself against losses and might
convince credit-rating companies to raise its status, which
was now just two notches above junk.

As a result, Sakura's BIS capital-to-asset ratio would rise
above 10 per cent, giving it some leeway to deal with bad
debt.

The bank's officials confirmed that Sakura was considering
radical restructuring and was hoping to form a tie up with
a foreign financial institution.

Tokyo based Sakura is the main bank for the 300-year-old
Mitsui group.

Analysts said the capital injection would not resolve all
the problems but would stop a free fall in the bank's stock
price and help it get through the Sept. 31 financial half
year accounting period without incident.

According to a Reuters report on the Hong Kong Standard,
bank president Akishige Okada said the move was aimed at
strengthening its financial base to brave tough competition
under the nation's "Big Bang" financial reforms and achieve
a recovery in its credit rating. He also said the bank is
considering a capital increase in order to restore its
credit rating to at least a single A.

The report says that analysts welcomed the move, as it
would help the bank dispose of much of its problem loans in
the current business year while retaining the required
capital adequacy ratio for banks operating internationally
of a minimum 8 percent.


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

IMEXPORT SDN BHD: Voluntary winding up
--------------------------------------
The members of Imexport Sdn Bhd on 28/8/98 resolved to
wind-up the company voluntarily. Creditors of the company
are requested to submit their claims before 1/10/98.


PERSTIMA: Informs KLSE of payment defaults
------------------------------------------
According to a Business Times report, Persatuan Sadur Timah
Malaysia (Perstima) Bhd has informed the Kuala Lumpur Stock
Exchange that the defaults in payments to Sabah Development
Bank Bhd and to Perwira Affin Bank Bhd were mainly due to
cash flow problems.

Perstima explained that it was unable to provide funds for
the repayment of a loan to Sabah Development Bank due to
the company's cash flow position, which has not improved
over the past months.

Sabah Development Bank had earlier provided a revolving
credit facility of RM80 million to Perstima, bringing the
total amount payable to date to RM87.64  million as at
April 30 this year.

As a result of the default, the bank is empowered to
appoint receivers and mergers since the debenture on the
company's fixed and floating assets was issued to the bank
for the loans given.

However, Perstima said the bank has stayed exercising their
legal options in respect of the debenture since it is still
negotiating with the bank to discuss the various available
options for the settlement.

Meanwhile, Perwira Affin Bank provided two term loans
totaling RM90 million to Perstima's subsidiary, Perstima
Industries Sdn Bhd.

Perwira Affin has now notified the subsidiary that the
credit facilities provided have been recalled.

In May 1997, it entered into an agreement with a third
party to sell 66.7 per cent of its equity interest in
Perstima Industries and on completion, the disposal would
have effectively discharged the company from its loan  
obligations with Perwira Affin.

However, the agreement has lapsed and fresh negotiations
have been ongoing since March.

Thus, Perstima is unable to continue the repayments as all
of its available funds have been committed to maintain the
operation of its sole core business in the manufacture of
tinplate.

Since Perstima provided a corporate guarantee and
undertaking to repay installments which are payable by
Perstima Sdn Bhd, the bank is now empowered to demand
payments from the company.


S.H. COATINGS (M) SDN BHD: Voluntary winding up
-----------------------------------------------
The members of S.H. Coatings (M) Sdn Bhd on 28/8/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
1/10/98.


SODA MARKETING SDN BHD: Winding-up petition
-------------------------------------------
Hong Leong Bank Bhd (listed in the KLSE) on 18/7/98
petitioned for the winding-up of Soda Marketing Sdn Bhd.
The petition is directed to be heard on 3/12/98.


SYARIKAT FIVEWAY STEEL SDN BHD: Winding-up petition
---------------------------------------------------
Syarikat Ampang Steel Sdn Bhd on 20/5/98 petitioned for the
winding-up of Syarikat Fiveway Steel Sdn Bhd. The petition
is directed to be heard on 23/9/98.


TENAGA GEMILANG SDN BHD: Voluntary winding up
---------------------------------------------
The members of Tenaga Gemilang Sdn Bhd on 7/10/98 resolved
to wind-up the company voluntarily.


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

NATIONAL STEEL: Results announcement
------------------------------------
National Steel Corp, a Philippines steel company posted a
net loss for the first half as sales declined due to the
economic slowdown caused by the regional financial crisis.  
The state-owned company made a net loss of 1.67 billion
pesos in the first half compared to a net profit of 84.8
million pesos in the year-ago period. Sales dropped 14% to
4.45 billion pesos from 5.16 billion pesos. The company
said it was hit by higher financing charges and foreign-
exchange losses.


PHILIPPINE AIRLINES: Task force named to resolve problems
---------------------------------------------------------
The Asian Wall Street Journal reported that the President
of the Philippines has decided to form a special task force
to resolve problems with the cash-strapped Philippine
Airline (PAL). President Estrada cited the urgency of
resolving the problems of the national flag carrier for the
reason to form the task force.

PAL's pilots staged a 22-day strike in June, and its ground
crew walked off the job for a week, which worsened the
problems the airline was seeing due to the Asian currency
crisis. The strike forced PAL to drastically reduce its
operations, including the suspension of both domestic and
international flights.

PAL has announced that due to its labor problems it is
unable to make payments on about $2 billion of debt. It is
also currently finalizing a rehabilitation plan with the
Philippine Securities and Exchange Commission.

Also yesterday, PAL announced it will to file a motion with
a US district court for a permanent injunction preventing
creditors there from pressing claims, a newspaper said
yesterday. PAL counsel Estelito Mendoza said they are
hoping to get a more permanent injunction so that the
creditors of PAL will not act on their claims against PAL.
The San Francisco district court issued a temporary
injunction to prevent US creditors, but this is to expire
next month.


RFM CORP: Confirms delisting of subsidiaries
--------------------------------------------
BusinessWorld reports Food and beverage firm RFM Corp.
yesterday confirmed reports that it is planning to buy back
Selecta Dairy Products, Inc. and Swift Foods, Inc. and
delist the subsidiaries from the stock exchange.

In a disclosure, the Concepcion-run business said it was
prompted to delist the two units as these are currently
trading at low volumes.

On the average, the volume turnover for Selecta for the
past six months amounted to some 175,000 to 200,000 shares.
Average weighted for Swift, on the other hand, ranged from
75,000 to 100,000 shares, an analyst from a local   
brokerage house told BusinessWorld.


=================
S I N G A P O R E
=================

FALMAC: Results announcement
----------------------------
Falmac's net loss widened to $2.55 million in its financial
year ended May 31, 1998, from $1 million in the previous
year. While revenue rose 31 per cent to $22.3 million,
gross margins shrank from stiffer competition. It also
incurred higher expenses on bank interest, depreciation and
amortisation for both its existing business and its newly
set up spinning factory in China. Loss per share was 4.26
cents, compared with 1.67 cents previously. No dividend has
been declared.


IPCO INTERNATIONAL: Makes provisions
------------------------------------
Singapore BusinessTimes reports Ipco International is
making full provision for doubtful debts of $1.54 million
owed by its parent Promet to its subsidiary Ipco
Constructors Sdn Bhd. Ipco said the debt may not be
recoverable in whole or substantially as Malaysia-based
Promet is under a court order for a proposed restructuring
scheme.

With the provision, Ipco's loss after tax and extraordinary
items for the financial year ended April 30, 1998, is $52.2
million, larger than the $50.7 million earlier announced.
Its revised net tangible asset is $0.97 per share.


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

BANGKOK THANI HOTEL: Conflict threatens collapse
------------------------------------------------
The Bangkok Post reports conflict among major shareholders
of Bangkok Thani Hotel Co, the owner of Hotel Nikko
Mahanakorn Co, threatens to trigger the collapse of the
parent company.

The rift between Titiporn Namngern and Japan Asia
Investment Co (JAI), each with 45% shareholdings in Bangkok
Thani Hotel, is blocking rehabilitation efforts.

Bangkok Thani Hotel's creditors Bangkok Bank, Union Asia
Finance and Bank of Asia filed suit under the new
Bankruptcy Law, asking the court to supervise loan
restructuring.

Bangkok Bank and Union Asia Finance jointly own 10% of the
parent company.

But their request was turned down in favour of Ms Titiporn,
who opposed the request. The court ruled that Bangkok Thani
Hotel was not on the point of going bankrupt, as its asset
value still exceeded its debt.

The creditors were not the only ones disappointed. The
Japanese shareholders were also upset as they viewed
rehabilitation as the only way to revive the subsidiary.

If the company is not rehabilitated, there is no way it can
survive. Before servicing debt, the company's net earnings
are 8-10 million baht per month. But the monthly burden of
paying interest alone on its 3.43-billion-baht loan is
almost 50 million baht, according to Kacuhiro Nagashima,
the executive vice-president of JAI.

He said the restructuring of the company's financial
position would be a solution fair to all concerned:
creditors, shareholders and even employees.

"Unfortunately, the court turned down the creditors'
request to rehabilitate the company [under the new
Bankruptcy Law]," Mr Nagashima said.


HANA MICROELECTRONICS: SET grants trading status
------------------------------------------------
The SET has allowed The Hana Microelectronics Public
Company Limited (HANA) securities to be traded on the SET
after finishing capital increase procedures, starting 31
August 1998.   


P-GROUP HOLDING: Memorandum on connected transactions
-----------------------------------------------------
An acknowledgment of debt issued by P-Group Holding to
Power-P totaling Bht 241,250,000 in respect of advance
payments as appeared on the financial statements as of 31
March 1998. The acknowledgment of debt does not provide
terms and conditions regarding an interest rate, repayment
schedules or collateral to be given as security. The
advance payments represent the net balance incurred from
the foregoing which comprise a number of both payments and
settlement transactions.

Since the repayment schedules were not indicated, a
settlement from P-Group Holding can be enforced upon
demand. Power-P also has an intention to impose interest on
P-Group Holding at the maximum rate allowed under the Civil
and Commercial Code though no interest rate has been
specified.

Collateral was not demanded in the first place due to the
debt being arisen from the normal course of business
aforementioned, not meant to be a loan.  It is noted that
P-Group Holding and/or Mr. Veerachai  Eurvilaichit are/is
the guarantor(s) for all types of loans granted by almost
banks and other financial institutions.

P-Group Holding has a 40.76% interest in Power-P.  Mr.
Veerachai Eurvilaichit has a 99.99% interest in P-Group   
Holding and a 8.56% in Power-P. Mr. Veerachai Eurvilaichit
is also a director of both P-group Holding and Power-P.


PHATRA THANAKIT: Announces details of purchase
----------------------------------------------
According to the Board of Director's meeting No. 7/2541 on
20 July 1998 of Phatra Insurance Public Company Limited,
the Board has been informed that Thai Farmer Bank Public
Company Limited has submitted the tender offer to
purchase the shares of Phatra Thanakit Public Company
Limited at the price of Baht 4.50 per share. The shares of
10 million are held by the Company. The Board has resolved
that the final resolution will be decided by the Board of
Executive Director.

Presently the Board of Executive Director has the
resolution to sell 10 million shares of Phatra Thanakit
Public Company Limited at Baht 4.50 per share by 4
September 1998. The Sale collection will be received on 9
September 1998. As a result, the loss of approximately Baht
100 million will be realised in the third quarter. However,
the Company has already set up the provision for unrealised
loss of Baht 108.13 million which is presented as a
separate item in the shareholders' equity in the second
quarter financial statements. This transaction represented
2.42 percent of the Company's net tangible assets which
will not be required for disclosure in respect of
acquisition and/or disposal of assets of the listed
company.

However, it is a transaction with the related parties of
listed companies and is in compliance with exception of the
announcement of the Stock Exchange of Thailand in
connection with standards, procedures and disclosure of
related transaction of listed companies No. 8 (1).


SUPALI PLC: Statements not in compliance
----------------------------------------
Referring to reviewed consolidated financial statements for
the period ending June 30, 1998 filed by Supali Plc, the
auditor expressed a qualified opinion on paragraph 5
stating, "We were informed by management that the company
capitalized interest to certain projects which were
suspended the development for the three-month period ended
June 30, 1998 totalling approximately Baht 39.7 miilion."

According to the Accounting Standard No.15, "Capitalisation
of the borrowing costs", the Company shall not capitalise
interest to certain projects which were suspended the
development.

The SET notified the company for rectification within 30
days or by September 27, 1998.


THAI INVESTMENT AND SECURITIES: Results announcement
----------------------------------------------------
Thai Investment and Securities reports half year results as
a net loss of Bt1.78 billion. This compares with a profit
of Bt324 million for the corresponding 1997 period.


UNITED COMMUNICATION: Motorola sells stake in shareholder           
---------------------------------------------------------
According to a report in The Nation, Motorola Inc. Monday
sold its stake in a Thai holding company that is the major
shareholder of United Communication Industry Plc (Ucom).

The sell-off ended speculation over Motorola's plans for
Thailand. The company has removed its name from a potential
list of partners sought by Ucom's subsidiary, Total Access
Communications (TAC).

Monday, the US-based equipment maker sold its 25 percent
stake in World Telecom Holding. The stake is equivalent to
12.6 percent of 30 million shares Motorola indirectly held
in Ucom.

In a filing to the Stock Exchange of Thailand (SET) Monday,
the buyer was identified as British firm Somers. Ucom could
not detail the company's profile, but said that Somers
would not be involved in the management. Analysts believe
the company is acting as a special vehicle in order to sell
the interest to a new investor.

According to Ucom, Motorola received about 420 million baht
($9.87 million), or 14 baht per share in the sale.

The Ucom source added that without Motorola's stake, Ucom
will find it easier to deal with its debt-restructuring
plan because Ucom does not now have to wait for a consensus
from Motorola in Chicago.

Monday, Ucom held another meeting with their creditors with
regard to the roll over of debt. The company has a 17:8
debt to equity ratio and is struggling to clear US$15
billion in foreign loans.


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,
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.

            * * * End of Transmission * * *