/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/980911.MBXT R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, September 11, 1998, Vol. 1, No. 141 Headlines * C H I N A & H O N G K O N G * CAPITAL ASIA LIMITED: Revised reorganization proposal CHUN YICK COMPANY: Winding-up petition CONCORDIA PAPER: Results announcement FULL COUNTRY DEVELOPMENT: Winding-up petition HONGXING BEARING PLANT: Ailing firm put under the hammer HWA KAY THAI HOLDINGS: Proposed group restructuring INTERFORM CERAMICS: Creditor seeks repayment on property GILBERT HOLDINGS: Gilbert losses hit $1.2b GLOBAL CHEERS LIMITED: Winding-up order LAI SUN DEVELOPMENT: Unloads non-core offices LI SANG KEE CONSTRUCTION COMPANY: Winding-up petition MR. RHINO SOUTH AFRICAN RESTAURANT: Winding-up petition MAGNUM INTERNATIONAL: Results announcement MILFUL DEVELOPMENT: Winding-up petition NEW GOLDEN PLAZA RESTAURANT: Winding-up petition RAINBOW GATE LIMITED: Winding-up petition SING TAO HOLDINGS: Announcement on connected transaction STATEMOUNT COMPANY LIMITED: Winding-up petition TIEN SEE KNITTING FACTORY LIMITED: Winding-up petition TINDEX PROPERTIES LIMITED: Amended winding-up petition ULTRASONIC INDUSTRIAL COMPANY: Winding-up petition WING LEE TRANSPORT: Information on audited net profit * I N D O N E S I A * ASTA INTERNATIONAL: Federal motor arm to merge * J A P A N * DAIWA SECURITIES: Reports losses FUJI BANK: Fuji denies rumours as share price slides MATSUSHITA ELECTRIC: To shutter US chip making operations SAKURA BANK: Toyota denies Sakura report * K O R E A * DASAN METAL: Completes creditor reconciliation procedure DONGAH LIFE: Regulators skeptical of self-rescue plan DOOWON LIFE: Regulators skeptical of self-rescue plan EUISUN MEDICAL FOUNDATION: Starts creditor reconciliation HALLA GROUP: Creditors eye US$1.8b sale of Halla units HANDUK LIFE: Regulators skeptical of self-rescue plan HANKUK LIFE: Regulators skeptical of self-rescue plan JOSUN LIFE: Regulators skeptical of self-rescue plan KIA MOTORS: Creditors to write off debts KOOKMIN LIFE: Regulators skeptical of self-rescue plan PACIFIC LIFE: Regulators skeptical of self-rescue plan * M A L A Y S I A * BLUE RINGS CIVIL ENGINEERING SDN BHD: Winding-up petition EXQUISITE MERGE (M) SDN BHD: Winding-up petition FORDEX TRADING SDN BHD: Winding-up petition HLG CAPITAL BHD: Results announcement IMAGINIQUE (M) SDN BHD: Winding-up petition INTOUCH TUTORIALS (M) SDN BHD: Winding-up petition KUMPULAN OTHMAN SEKUTU (M) SDN BHD: Winding-up petition LAPANGAN TAKTIK SDN BHD: Winding-up petition MALPAC HOLDINGS BHD: Deferment of corporate exercise MASTERON SDN BHD: Winding-up petition MILAS MANUFACTURING SDN BHD: Winding-up petition PETALING TIN BHD: Announcement on major restructuring * P H I L I P P I N E S * EDUAROSA REALTY: Wants PNB to release loan PHILIPPINE REALTY: Sells land to pay debt * S I N G A P O R E * NEPTUNE ORIENT LINES: Announces reductions ST CAPITAL: Brokers announce merger VICKERS BALLAS: Brokers announce merger * T H A I L A N D * THAI PETROCHEMICAL: Plans to swap debt into equity ================================= C H I N A & H O N G K O N G ================================= CAPITAL ASIA LIMITED: Revised reorganization proposal ----------------------------------------------------- Further to the announcement dated 24th July, 1998 and the circular dated 10th August, 1998 issued by the Company, the Directors announce that the relevant resolutions of the Capital Reorganization Proposal were duly passed at the extraordinary general meeting of the Company held on 7th September, 1998. The Capital Reorganization Proposal is conditional on the passing of relevant resolutions at the Extraordinary General Meeting, the confirmation by the Court of the Capital Reduction, the registration by the Registrar of Companies of an office copy of the Court order and the minute containing the particulars required under Section 61 of the Companies Ordinance, and the Stock Exchange granting listing of, and permission to deal in the New Shares. The Announcement and the Circular indicated that the Effective Date of the Capital Reorganisation Proposal was expected to be Thursday, 8th October, 1998. In light of the time required to prepare fully for the impending Court hearings, it is now expected that the Court will hear the petition for confirmation of the Capital Reduction on Tuesday, 27th October, 1998 and that the Effective Date of the Capital Reorganisation Proposal will be Thursday, 29th October, 1998. A further announcement confirming the Effective Date and the trading arrangements concerning the New Shares will be made on or around 13th October, 1998, being expected date of the hearing of summons for direction by the Court. CHUN YICK COMPANY: Winding-up petition -------------------------------------- A petition for the winding up of CHUN YICK COMPANY LIMITED was presented to the High Court on July 14 by Commissioner of Inland Revenue of Hong Kong of Revenue Tower, 5 Gloucester Road, Wanchai, 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 Chan Yuen Ping Lorraine, Government Counsel, Counsel for the Petitioner, Department of Justice, 2nd Floor, High Block, Queensway Government Offices, 66 Queensway, Hong Kong on payment of the regulated charges for the same. CONCORDIA PAPER: Results announcement -------------------------------------- Concordia Paper (Holdings) Limited today announced its unaudited results for the second quarter ended 30 June 1998 as a net loss of HK$18 million (or a net loss of HK$1.99 per ADS) compared to a net income of HK$12.4 million (or a net income of HK$1.37 per ADS) for the same period in 1997. The net loss for the period was a 58% improvement on the first quarter of 1998 which reported a net loss of HK$43.0 million (or a net loss of HK$4.73 per ADS). On 31 July 1998, Concordia Paper Limited, the Company's main operating entity, received a formal letter of demand for repayment of all outstanding amounts due under one of its working capital facilities. This demand, combined with the already reduced level of working capital support from the Company's lenders prompted the Company to request an informal standstill with all its bankers, in order to give the Company and its principal shareholders time to negotiate a financial restructuring. As a result of this request, these outstanding amounts have not been paid. Following this, certain other lenders under CPL's other working capital facilities notified CPL that they will not renew the facilities pursuant to which they have provided CPL with working capital. This action by CPL's working capital lenders has caused an event of default under CPL's US$47.2 million term loan facility. In response, the agent for the lenders has, on behalf of the lenders, exercised its right under the terms of a debenture granted by CPL to create a fixed charge over certain assets of CPL. Accordingly, CPL may not deal with any or all of its business, undertaking, property, assets, rights and revenues subject to such fixed charge without the consent of the lenders. The lenders have informed CPL that it may sell, transfer or dispose of its stock in trade, inventory, raw materials and goods in the process of manufacture and it may use the proceeds of any such transaction and any other cash balances to pay debts relating to transactions arising in the ordinary course of its business. The Company believes that the ability to deal freely with these assets not subject to the fixed charge should enable CPL to continue to operate its business and to continue to pay its suppliers in the ordinary course of business. The Company and its principal shareholders are participating in discussions with its secured lenders under the term loan facility with a view to entering into standstill and restructuring arrangements with all its lenders. Such discussions are currently at a preliminary stage. Concordia Paper (Holdings) Limited (Concordia), located in the Yuen Long Industrial Estate in the New Territories of Hong Kong, is the holding company of Concordia Paper Limited (CPL). FULL COUNTRY DEVELOPMENT: Winding-up petition --------------------------------------------- A petition for the winding up of Full Country Development Limited whose registered office is situate at Room 703, 7th Floor, Citicorp Centre, 18 Whitfield Road, Hong Kong was presented to the High Court on Aug 8 by Lee Yiu Shun and Cheong Yiu Tong of Flat A, 14th Floor, Mei Foo Sun Chuen, 70 Broadway Road, Kowloon, Hong Kong and 4th Floor, 274 Sha Tsui Road, Tsuen Wan, New Territories, Hong Kong, and the said petition is directed to be heard before the court at 9:30 am on Sept 23, 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 the Solicitors for the Petitioner, Chan & Chiu, Unit B, 5th Floor, Empire Land Commercial Centre, 83 Lockhart Road, Wanchai, Hong Kong on payment of the regulated charges for the same. HONGXING BEARING PLANT: Ailing firm put under the hammer -------------------------------------------------------- The Hong Kong Standard said that according to the local Chinese Wen Hui newspaper, assets, including the plant, equipment and the "Red Star" trademark for its ball- bearings, of Shanghai's Hongxing Bearing Plant, declared bankrupt in January, were put up for sale on Monday. The newspaper said the company had 228 million yuan in assets and 254 million yuan in liabilities. HWA KAY THAI HOLDINGS: Proposed group restructuring --------------------------------------------------- The board of directors of Hwa Kay Thai Holdings Limited announces that a legally binding heads of agreement was entered into on 29th August 1998 between Hwa Kay Thai and Hung Cheong Machinery Company Limited regarding a proposed financial restructuring of Hwa Kay Thai. The Restructuring Proposal will involve, among other things, (i) capital reduction and consolidation; (ii) a 5- for-2 rights issue to raise approximately HK$50 million for the Company; (iii) following the rights issue, Hung Cheong subscribing for approximately HK$100,000,000 new shares of Hwa Kay Thai; and (iv) restructuring of the Company's indebtedness. Following completion of the Restructuring Proposal, the Investor will own approximately between 48.99 per cent to 74.46 per cent (depending upon the outcome of the rights issue) of the issued share capital of Hwa Kay Thai. The completion of the Restructuring Proposal is not predicated on the outcome of the Employee Buy-Out Agreement, the completion of the latter is uncertain at this time. The directors of the Company are assessing the Company's current financial position and are not able to determine it yet. However, if the Company is unable to restructure its indebtedness or to secure new equity financing, it may have a negative asset value and it may go into liquidation. A further announcement will be made on or before 15th September 1998 with respect to the status of the Restructuring Proposal. INTERFORM CERAMICS: Creditor seeks repayment on property -------------------------------------------------------- Interform Ceramics Technologies Limited has informed the Stock Exchange of Hong Kong that one of its wholly-owned subsidiaries has received a writ dated 31 August 1998 from one of its creditors for repayment of debts and delivery of possession of a property which the Company currently uses as office premises. The creditors of the Company and its subsidiaries are still considering the standstill agreement. If the standstill agreement cannot be reached, the cashflow position of the Group will be affected. In light of the above, shareholders and potential investors are urged to exercise extreme caution when dealing in shares of the Company. Further to the announcement dated 28 August 1998, the Group received a writ issued on 31 August 1998 from The China State Bank Limited, one of its creditors, claiming for the repayment of debts in the amount of approximately HK$22 million due from the Group and delivery of possession of a property situated at Units 1, 2 and 3 on 7th Floor of Yue Xiu Building, Nos. 160-174 Lockhart Road, Hong Kong. Steps have been taken by the Company to negotiate with The China State Bank Limited in respect of the debts and the possession of the Property. The directors of the Company are of the view that the daily operations and business of the Group would not be materially affected in the event that its creditor takes possession of the Property. In the meantime, steps have also been taken by the Company to negotiate with all of its lending banks to reschedule the repayment of their debts. GILBERT HOLDINGS: Gilbert losses hit $1.2b ------------------------------------------ According to the Hong Kong Standard, bad debts and poorly performing investments have led to massive losses of $1.26 billion at flax trader Gilbert Holdings. The company yesterday announced it was forced to make a $933 million provision for the year to March 31, mainly for bad debts as well as for the plunging value of its investment in shares. The huge loss provision was further compounded by $309 million in operating losses, bringing total operating losses to $1.23 billion. The company said it had to make $542 million loss provision for bad and doubtful debts during the period. The plunging value of equities led to a $295 million provision for stocks investments. It also had to write off a $70.44 million investment in a subsidiary, an associated company, a joint venture and two vessels. Anther $10 million was provision for doubtful bills, $3.8 million was for diminution in value of properties in Hong Kong and $2.5 million on the mainland. The company reported a $79.8 million profit for the previous year. The forecast for the period to Mar 31 was $109.1 million, according to the Estimate Directory. Turnover rose slightly by 5.6 percent to $1.2 billion from last year's $1.1 billion. The company announced it was in deep financial trouble this year and was in discussion with its bankers. The group's total borrowing had grown to $800 million as of July. The company had expanded aggressively in recent years. It was listed in October 1995. GLOBAL CHEERS LIMITED: Winding-up order --------------------------------------- An announcement in the Hong Kong Standard says Global Cheers Enterprise Limited received a winding-up order on August 26, 1998. The petition was presented on July 28, 1998, and the official receiver and provisional liquidator is A.R. Hearder. LAI SUN DEVELOPMENT: Unloads non-core offices --------------------------------------------- According to the SCMP, Lai Sun Development would sell 20 office units of about 800 square feet each, targetted at Star House, Tsimshatsui where the company owned about 127,827 sq. ft. of office space, at prices starting from $2,000 per square foot, in order to increase cash flow. Lai Sun has disposed of about $3 billion worth of assets this year in an attempt to lower debt. Its debt to equity ratio is eatimated at slightly less than 50 per cent. Credit Lyonnais Securities Asia said in its latest report on the company that cash flow continued to be tight and the real solution would not arise until some large disposals were conducted. The brokerage said the company's long term growth had been damaged by the tight liquidity problem. At a 56 percent discount to Credit Lyonnais' adjusted net asset value, however, Lai Sun's valuation was attractive. LI SANG KEE CONSTRUCTION COMPANY: Winding-up petition ----------------------------------------------------- Notice is hereby given that a petition for the winding-up of Li Sang Kee Construction Company Limited by the High Court of Hong Kong was, on the 21st day of August, 1998, presented to the said Court by Ng Chi Cheung and the petition is heard on 23rd of September, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. MR. RHINO SOUTH AFRICAN RESTAURANT: Winding-up petition ------------------------------------------------------- An announcement in the Hong Kong Standard says Mr. Rhino South African Restaurant Limited received a winding-up order on August 26, 1998. The petition was presented on July 24, 1998 and the official receiver and provisional liquidator is A.R. Hearder. MAGNUM INTERNATIONAL: Results announcement ------------------------------------------ Magnum International has announced its losses in the first six months of 1998 totalling $12.82 million, compared with $6.34 million in the same period last year. Turnover shrank to $21.94 million form $26.13 million. Operating losses have doubled, reaching $12.18 million during the period compared to $5.354 million loss in the same period last year. MILFUL DEVELOPMENT: Winding-up petition --------------------------------------- A petition for the winding up of Milful Development Limited was presented to the High Court on July 14 by Commissioner of Inland Revenue of Hong Kong of Revenue Tower, 5 Gloucester Road, Wanchai, 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 Cheung Sau Yin Sophia, Government Counsel, Counsel for the Petitioner, Department of Justice, 2nd Floor, High Block, Queensway Government Offices, 66 Queensway, Hong Kong on payment of the regulated charges for the same. NEW GOLDEN PLAZA RESTAURANT: Winding-up petition ------------------------------------------------ An announcement in the Hong Kong Standard says New Golden Plaza Restaurant Limited received a winding-up order on August 26, 1998. The petition was presented on July 22, 1998 and the official receiver and provisional liquidator is A.R. Hearder. RAINBOW GATE LIMITED: Winding-up petition ----------------------------------------- A petition for the winding up of Rainbow Gate Limited was presented to the High Court on Aug 26 by LL & S Purchasing Corporation of 512 Seventh Avenue, New York, United States of America, and the said petition is directed to be heard before the court at 11:00 am on Sept 23, 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 the Solicitors for the Petitioner, Robertson Double & Lee, 20/F., Printing House, 18 Ice House St., Central, Hong Kong on payment of the regulated charges for the same. SING TAO HOLDINGS: Announcement on connected transaction -------------------------------------------------------- On 19th January, 1998, Sing Tao Newspapers New York Ltd. made a loan to Miss Sally AW Sian who repaid it on 27th March, 1998. The Advance constituted a connected transaction under the Rules Governing the Listing of Securities on the Stock Exchange and a breach of the Listing Rules as no press announcement was made. The parties to the Advance were: Lender -- STNNYL, a wholly-owned subsidiary of the Company, incorporated in the United States of America, and Borrower -- Miss AW, the chairman of the Company and beneficial owner of approximately 50.04% of the issued share capital of the Company On 19th January, 1998, STNNYL made an unsecured loan of US$1.5 million (about HK$11,623,000) to Miss AW. The directors of the Company (apart from Miss AW) were not aware of the Advance. When details of the transaction became known, arrangements were made for the loan to be repaid as soon as practical and it was repaid on 27th March, 1998. Interest was paid on the loan at a rate of 9% per annum, being 0.5% per annum over the prime rate quoted by leading banks in U.S.A. For the Company, the Advance was a connected transaction under the Listing Rules as Miss AW was a party to the Advance and the controlling shareholder of the Company. No press announcement was made regarding the Advance as the directors of the Company considered that the error was corrected as soon as practicable and it was as if the Advance had not been made. Details of the Advance have been included in the annual report and accounts of the Company for the year ended 31st March, 1998 sent to shareholders of the Company recently. As no press announcement was made immediately after the Advance, this constituted a breach of the Listing Rules. The Stock Exchange reserves the right to take further action in this regard. STATEMOUNT COMPANY LIMITED: Winding-up petition ----------------------------------------------- An announcement in the Hong Kong Standard says Statemount Company Limited received a winding-up order on August 26, 1998. The petition was presented on July 17 and the official receiver and provisional liquidator is A.R. Hearder. TIEN SEE KNITTING FACTORY LIMITED: Winding-up petition ------------------------------------------------------ Notice is hereby given that a petition for the winding-up of Tien See Knitting Factory Limited by the High Court of Hong Kong was, on the 28th day of August, 1998, presented to the said Court by So Fat-hing and the petition is heard on 30th of September, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. TINDEX PROPERTIES LIMITED: Amended winding-up petition ------------------------------------------------------ An amended petition for the winding up of TINDEX PROPERTIES LIMITED was presented to the High Court on July 18 by Ko Fei and Chow Mei Mui of Flat C, 3rd floor, Wah Lik Industrial Centre, Nos. 459-469 Castle Peak Road, Tsuen Wan, New Territories, 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 the Solicitors for the Petitioner, Siao, Wen and Leung, 15th Floor, Hang Seng Building, 77 Des Voeux Road Central, Hong Kong on payment of the regulated charges for the same. ULTRASONIC INDUSTRIAL COMPANY: Winding-up petition -------------------------------------------------- Notice is hereby given that a petition for the winding-up of Ultrasonic Industrial Company Limited by the High Court of Hong Kong was, on the 4th day of September, 1998, presented to the said Court by Lau Fong and the petition is heard on 14th of October, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. WING LEE TRANSPORT: Information on audited net profit ----------------------------------------------------- The audited net profit of the Group (as defined below) for the year ended 31 March 1998 (as announced on 26 August 1998) included a write-back of contingent tax provision of HK$12.4 million. Without such write-back, the net profit of the Group for the year ended 31 March 1998 would have amounted to about HK$28.3 million which would fall short of HK$40 million. The Board (as defined below) believed that the write-back resulted from the Group's usual and continuing tax management on an on-going basis and was in the ordinary course of business. It believed that no obligation had arisen pursuant to Notes 2.10 or 2.11 of the Listing Agreement and therefore no announcement was made prior to the Results Announcement (as defined below). The Stock Exchange of Hong Kong Limited is looking into the matter and reserves the right to take any appropriate action against the Company and/or the Board for non- compliance with the Listing Rules. Wing Lee World Transport Holdings Limited (the "Company") and its subsidiaries (together the "Group') announced its results for the year ended 31 March 1998 on 26 August 1998 (the "Results Announcement"). For the year ended 31 March 1998, the Group's audited net profit attributable to shareholders was about HK$40.7 million (the "Net Profit"). The forecast combined profit after taxation but before extraordinary items of not less than HK$40 million for the same year ("Profit Forecast") was set out in the Company's prospectus dated 7 October 1997. However, the directors of the Company (the "Board") would like to draw the attention of the investing public and shareholders of the Company that the Net Profit included a write-back of contingent tax provision of HK$12.4 million mainly as a result of the liquidation of Vincent Container Lines S.A. ("VCL"), a wholly-owned subsidiary of the Company incorporated in Panama. Further details are set out on page 34 of the Company's 1998 annual report dated 26 August 1998. Without such write-back, the net profit of the Group for the year ended 31 March 1998 would have amounted to about HK$28.3 million, which would fall short of HK$40 million. The liquidation process of VCL began in April 1998 and was completed in May 1998. In the preparation of the Profit Forecast, the Board did not include the write-back of the tax provision as it had not anticipated the timing for the release of the contingent tax provision. The Board believed that the write-back resulted from the Group's usual and continuing tax management on an on-going basis and was in the ordinary course of business. It believed that no obligation had arisen pursuant to Notes 2.10 or 2.11 of the Listing Agreement and therefore no announcement was made prior to the Results Announcement. The Stock Exchange of Hong Kong Limited is looking into the matter and reserves the right to take any appropriate action against the Company and/or the Board for non- compliance with the Listing Rules. ================= I N D O N E S I A ================= ASTA INTERNATIONAL: Federal motor arm to merge ---------------------------------------------- The SCMP says that Indonesia's largest car manufacturer, Astra International, is to merge two units of its subsidiary Federal Motor to improve efficiency, according to a company vice-president. The two units are Honda Astra Engine Manufacturing and Honda Federal - both joint ventures with Honda Motor. Federal Motor has stakes of 49 percent and 40 percent in the two ventures. ========= J A P A N ========= DAIWA SECURITIES: Reports losses -------------------------------- Daiwa Securities Co said it had unrealized trading losses of about 14 billion yen at the end of August on its emerging market bond holdings, partly because of Russia's economic crisis. Daiwa said its holdings include bonds from Asia and South America, among other region. In addition, Daiwa Europe Ltd, the UK subsidiary of Daiwa Securities, had $40 million of loan receivables collateralized mainly Russian Government bonds at the end of August. FUJI BANK: Fuji denies rumours as share price slides ---------------------------------------------------- According to the Hong Kong Standard, shares in Fuji Bank, the nation's fifth largest bank dived over 15 per cent to 3329 yen, the fourth biggest percentage loser on the Tokyo Stock Exchange's first section, amid worries over its financial. This prompted the bank to call a news conference yesterday to deny market rumors that it may be suffering hefty derivatives losses overseas amounting to two trillion to three trillion yen. The bank said the maximum possible loss from its derivatives trading, the notional amount of which totalled 418 trillion yen on a group basis, would be limited to around 15 billion yen, and the risks are not high as most of the bank's derivatives transactions are interest rate swaps. The bank's share price did not recover despite the denial. MATSUSHITA ELECTRIC: To shutter US chip making operations --------------------------------------------------------- The Associated Press reports Matsushita Electric Industrial Co., the world's largest consumer electronics manufacturer, will close down its computer chip making operations in the United States by year's end. The move will affect about 340 employees at Matsushita Semiconductor Corp.'s factory in Puyallup, Wash., Matsushita Electric said Wednesday. Matsushita Semiconductor is an affiliate of the larger, Osaka-based Matsushita Electric Industrial. Matsushita markets products under the Panasonic, Quasar, National and Technics brand names. The decision to shutter the American semiconductor factory followed similar moves to withdraw from U.S.-based chip production by rivals Hitachi Ltd. and Mitsubishi Electric Corp. All three Japanese electronics makers have been hit hard by a global glut in computer memory chips which has pushed down prices and eroded profits. The Puyallup facility was set up in 1991 and had primarily manufactured 4-megabit dynamic random access memory, or DRAM, chips, Japan's Kyodo News reported. Meanwhile, Moody's Investors Service says it may cut its ratings for Matsushita Electric, blaming the economic slump. Moody's said it put under review for possible downgrade its high quality, Aa2 ratings for Matsushita's senior unsecured long-term debt. SAKURA BANK: Toyota denies Sakura report ---------------------------------------- Toyota Motor Corp is reportedly considering financial support worth up to 150 billion yen to boost the capital of Sakura Bank Ltd. Toyota said it has not started considering the amount of its aid, but Sakura's move to seek help from fellow members of the Mitsui group left open the question of whether the Fuyo corporate group would be able to do the same for Fuji. The SCMP says that Toyota Motor, Japan's largest car-maker, has denied a report it will buy 150 billion yen of new shares issued by Sakura Bank. The bank, Japan's fifth- largest commercial lender, said on Aug 31 it was asking Toyota and other members of its business group to buy 300 billion yen of new shares. The Asahi newspaper, without quoting sources, reported that Toyota would buy half the amount. ========= K O R E A ========= DASAN METAL: Completes creditor reconciliation procedure -------------------------------------------------------- The Seoul District Court advertised in the Korean language Maeil Kyungje that the Dasan Metal Industry Co. has completed its creditor reconciliation procedure. The company's address is 23-1 Noyoo-1-dong, Kwangjin-gu, Seoul, and the president is Mr. Yun Young-sang. DONGAH LIFE: Regulators skeptical of self-rescue plan ----------------------------------------------------- The Korea Times reports regulators are skeptical of the prospects of weak insurers staying afloat via capital injections from foreign investors. The Financial Supervisory Commission (FSC), which closed four life insurance companies last month, has also ordered seven other troubled insurance firms to come up with revised rehabilitation plans by the end of this week. Under this order, the seven companies are obliged to include concrete and feasible programs intended to increase capital and trim staff. Dongah (an affiliate of the Dong Ah Group) reportedly has an American insurance broker spearheading efforts to induce 300 billion won. DOOWON LIFE: Regulators skeptical of self-rescue plan ----------------------------------------------------- The Korea Times reports regulators are skeptical of the prospects of weak insurers staying afloat via capital injections from foreign investors. The Financial Supervisory Commission (FSC), which closed four life insurance companies last month, has also ordered seven other troubled insurance firms to come up with revised rehabilitation plans by the end of this week. Under this order, the seven companies are obliged to include concrete and feasible programs intended to increase capital and trim staff. Doowon claims the majority shareholder has promised to inject 110 billion won into the life insurance company by September, 2000 via the disposal of a machinery affiliate. EUISUN MEDICAL FOUNDATION: Starts creditor reconciliation --------------------------------------------------------- The Seoul District Court advertised in the Korean language Maeil Kyungje that Euisun Medical Foundation started a creditor reconciliation. Creditors have until October 14 to file their claims. The Foundation's address is 50-1 Wolgye- dong, Nowon-gu, Seoul, and the president is Mr. No Young- keun. HALLA GROUP: Creditors eye US$1.8b sale of Halla units ------------------------------------------------------ According to the SCMP, creditors of Halla Group are considering a proposal from United States investment bank Rothschild to sell the group's four main subsidiaries for US$1.8 billion, contigent upon the creditors agreeing to write off 62 percent of the group's 6.2 trillion won debt. According to an official at the Korea Exchange Bank, which is the largest creditor of Halla, representatives from Halla's 127 creditors, who met with Rothschild officials yesterday at the headquarters of the bank, have indicated there is little alternative to acceptance of the terms. Halla, Korea's 11th largest conglomerate, specialising in car parts, shipbuilding, cement and construction, went belly up last December under the 6.2 trillion won of debts. Rothschild senior management director Wilbur Ross yesterday offered to sell four big Halla units - Mando Machinery, Halla Construction, Halla Cement and Halla Heavy Industries - through bridge loans. Rothschild said Halla creditors would be better off selling Halla now with some debt write- offs, rather than dragging their feet on court protection or court-ordered debt restructuring, which could take years. Rothschild agreed to give Halla bridging loans in March to help it stabilise its business. According to Rothschild's plan, $1.2 billion of bridge loans would be brought in by the middle of December and an additional $600 million could be raised by selling Halla assets and taking other self rescue measures. Under the plan, creditors with collateral would be allowed to recover 48 to 70 percent of loans and creditors without collateral would recover 22 to 35 percent of their loans. According to the Korea Exchange Bank offical, no objections to the proposal were raised by creditors but some creditors with collateral expressed concerns that creditors without collateral would be recovering too much according to the proposal although those creditors usually recovered much less if a company was liquidated. Creditors of the four Halla units will meet between this month and next month to decide if they will accept the proposal. Creditors might demand higher sales prices with smaller debt write-offs although Rothschild said it would not raise the offer price, citing uncertain prospects of the Halla companies and the Korean economy. Mando Machinery is South Korea's largest carparts maker and recently suffered an 18-day strike by its strong union against the company's lay-off plan. HANDUK LIFE: Regulators skeptical of self-rescue plan ----------------------------------------------------- The Korea Times reports regulators are skeptical of the prospects of weak insurers staying afloat via capital injections from foreign investors. The Financial Supervisory Commission (FSC), which closed four life insurance companies last month, has also ordered seven other troubled insurance firms to come up with revised rehabilitation plans by the end of this week. Under this order, the seven companies are obliged to include concrete and feasible programs intended to increase capital and trim staff. Handuk claims to have completed a $200 million deal with an unidentified foreign insurance company. HANKUK LIFE: Regulators skeptical of self-rescue plan ----------------------------------------------------- The Korea Times reports regulators are skeptical of the prospects of weak insurers staying afloat via capital injections from foreign investors. The Financial Supervisory Commission (FSC), which closed four life insurance companies last month, has also ordered seven other troubled insurance firms to come up with revised rehabilitation plans by the end of this week. Under this order, the seven companies are obliged to include concrete and feasible programs intended to increase capital and trim staff. Hankuk (an affiliate of the Hyundai Group) says Hyundai will participate in the capital increase if restrictions on the new entry of large conglomerate into the life insurance industry are lifted. JOSUN LIFE: Regulators skeptical of self-rescue plan ---------------------------------------------------- The Korea Times reports regulators are skeptical of the prospects of weak insurers staying afloat via capital injections from foreign investors. The Financial Supervisory Commission (FSC), which closed four life insurance companies last month, has also ordered seven other troubled insurance firms to come up with revised rehabilitation plans by the end of this week. Under this order, the seven companies are obliged to include concrete and feasible programs intended to increase capital and trim staff. Josun, based in Taegu, has confirmed that the majority shareholder plans to inject 70 billion won into the company. KIA MOTORS: Creditors to write off debts ---------------------------------------- According to the SCMP and the Hong Kong Standard, a bank official said yesterday that creditors of Kia Motors will write off some of its debts. Reports estimated that about a quarter of the liabilities would be scrubbed to attract buyers. The KDB and other creditor banks tomorrow will issue letters with details of amended debt-payment conditions to the five companies that submitted letters of intent in the first round of the auction. The SCMP says that an official of Kia's leading creditor, the Korea Development Bank (KDB) said that details could not be released until consent from the other creditors is obtained. Halla Group gave way to making its subsidiaries leaner of debt to attract buyers this week as it emerged creditors were considering writing off 62 per cent of the group's 6.2 trillion won debt. Kookmin Daily said creditor banks agreed yesterday to write off 1.96 trillion won or 23 percent of Kia's principal debt, and 779 billion won or 30 percent of Asia Motors' debt. The daily quoted a Kia Motors official as saying a debt write-off of more than 40 percent would be needed to auction off the ailing firms in the crucial second round of bidding. Creditors opened preparations for a second round of bidding with the hint they might bow to demands and write off part of the failed firms' debts, estimated at 11.9 trillion won in July. More recent independent estimates put the figure at about 13.6 trillion won, and possibly more if other factors, including back wages, for workers, are taken into account. KOOKMIN LIFE: Regulators skeptical of self-rescue plan ------------------------------------------------------ The Korea Times reports regulators are skeptical of the prospects of weak insurers staying afloat via capital injections from foreign investors. The Financial Supervisory Commission (FSC), which closed four life insurance companies last month, has also ordered seven other troubled insurance firms to come up with revised rehabilitation plans by the end of this week. Under this order, the seven companies are obliged to include concrete and feasible programs intended to increase capital and trim staff. Kookmin claims to be in the final stages of a deal with New York Life Insurance. PACIFIC LIFE: Regulators skeptical of self-rescue plan ------------------------------------------------------ The Korea Times reports regulators are skeptical of the prospects of weak insurers staying afloat via capital injections from foreign investors. The Financial Supervisory Commission (FSC), which closed four life insurance companies last month, has also ordered seven other troubled insurance firms to come up with revised rehabilitation plans by the end of this week. Under this order, the seven companies are obliged to include concrete and feasible programs intended to increase capital and trim staff. No details are yet available for the plans of Pacific Life. =============== M A L A Y S I A =============== BLUE RINGS CIVIL ENGINEERING SDN BHD: Winding-up petition --------------------------------------------------------- Pioneer Concrete (M) Sdn Bhd on 1/9/98 petitioned for the winding-up of Blue Rings Civil Engineering Sdn Bhd. EXQUISITE MERGE (M) SDN BHD: Winding-up petition ------------------------------------------------ Life Publishers Bhd on 29/7/98 petitioned for the winding- up of Exquisite Merge (M) Sdn Bhd. The petition is directed to be heard on 13/11/98. FORDEX TRADING SDN BHD: Winding-up petition ------------------------------------------- Sime Bank Bhd on 31/7/98 petitioned for the winding-up of Fordex Trading Sdn Bhd. The petition is directed to be heard on 13/11/98. HLG CAPITAL BHD: Results announcement ------------------------------------- HLG Capital Bhd, a stockbroking firm listed in the KLSE, posted an unaudited group consolidated operating loss before tax of RM211.515mil for the year ended June 30, compared with a pre-tax profit of RM124.8mil for the previous year. The loss was mainly attributable to RM216.903mil in provision for doubtful debts and losses. IMAGINIQUE (M) SDN BHD: Winding-up petition ------------------------------------------- Lembaga Getah Malaysia on 24/7/98 petitioned for the winding-up of Imaginique (M) Sdn Bhd. The petition is directed to be heard on 24/9/98. INTOUCH TUTORIALS (M) SDN BHD: Winding-up petition -------------------------------------------------- Lembaga Getah Malaysia on 24/7/98 petitioned for the winding-up of Intouch Tutorials (M) Sdn Bhd. The petition is directed to be heard on 30/10/98. KUMPULAN OTHMAN SEKUTU (M) SDN BHD: Winding-up petition ------------------------------------------------------- Ng Chai Hin & Sons Sdn Bhd on 4/8/98 petitioned for the winding-up of Kumpulan Othman Sekutu (M) Sdn Bhd. The petition is directed to be heard on 4/12/98. LAPANGAN TAKTIK SDN BHD: Winding-up petition -------------------------------------------- Ever Rise Trading Sdn Bhd on 7/8/98 petitioned for the winding-up of Lapangan Taktik Sdn Bhd. The petition is directed to be heard on 4/12/98. MALPAC HOLDINGS BHD: Deferment of corporate exercise ---------------------------------------------------- Malpac Holdings Bhd (listed in the KLSE) announced a deferment of their proposed acquisition, transfer of equity, subscription of shares, special share issue and rights issue with was part of its corporate exercise. MASTERON SDN BHD: Winding-up petition ------------------------------------- ATMD Consultants (Yangon) Ltd on 29/7/98 petitioned for the winding-up of Masteron Sdn Bhd. The petition is directed to be heard on 13/1/99. MILAS MANUFACTURING SDN BHD: Winding-up petition ------------------------------------------------ EON Bank Bhd on 1/9/98 petitioned for the winding-up of Milas Manufacturing Sdn Bhd. PETALING TIN BHD: Announcement on major restructuring ----------------------------------------------------- Petaling Tin Bhd (listed in the KLSE) plans a major restructuring exercise that involves focusing on its core activities in property development and cease its mining activities. The scheme will also involve an acquisition of a property development arm and rights issue. After the scheme, the group's share capital will be raised to RM743,006,772 from RM20,168,412 currently. ===================== P H I L I P P I N E S ===================== EDUAROSA REALTY: Wants PNB to release loan ------------------------------------------ According to BusinessWorld, cash-strapped realty firm Eduarosa Realty and Development Corp. (ERDC) has asked its biggest creditor-bank, Philippine National Bank (PNB), for an additional 80-million Philippine peso (PhP) loan. In a letter to PNB president Benjamin Palma Gil dated September 2, Eduarosa counsel Jose Gerardo Medina said the firm needs additional financing to complete its 20-storey luxury condominium project along Roxas Boulevard. The proposal is among the recommendations presented to the bank in an effort to bail out the company from financial problems. Already, he said the Eduarosa Towers is 83% finished. The property was valued at PhP522.31 million against the firm's total debts now amounting to PhP1.03 billion. With available funds, he said Eduarosa Towers may be completed within six to seven months. To be able to pay off its total debts to the firm, the firm's counsel also proposed that once the project is completed, the firm will cede ownership of the property to PNB as payment in kind, otherwise known as dacion en pago. Under this arrangement, PNB will be responsible for paying off the firm's other creditors. PHILIPPINE REALTY: Sells land to pay debt ----------------------------------------- According to BusinessWorld, real-estate developer Philippine Realty and Holdings Corp. recently sold one of its properties worth 600 million Philippine pesos (PhP) to pay off maturing debts. Philrealty corporate secretary Sixto S. Sandejas II refused to give further details of the transaction. Total debts of the realty firm, however, have reached more than PhP3 billion. An analyst from a local brokerage firm told BusinessWorld that one of the properties the company might have sold is its land in Tagaytay City, which has a land value of PhP60.42 million. Based on the company's financial report culled from the Philippine Stock Exchange, the Tagaytay land comprised 1.7% of the total value of the company's land bank. ================= S I N G A P O R E ================= NEPTUNE ORIENT LINES: Announces reductions ------------------------------------------ Neptune Orient Lines Ltd, a Singapore shipping company, declared a host of cost-cutting measures including wage reductions for senior management and a wage freeze for junior staff as part of the strategy to weather the regional-financial turmoil. The company said the measures, which took effect September 1, will be reviewed after one year. ST CAPITAL: Brokers announce merger ------------------------------------ ST Capital and Vickers Ballas are to merge after both posted large first-half losses. Vickers Ballas, a regional broking outfit, posted a loss by S$49.63 million in the first six months to June 30, following an additional $61.9million provisioning for bad debts. ST Capital, the financial services arm of the state-owned Singapore Technologies group, yesterday reported a $30.99 million interim loss, far more than analysts had expected. Under the proposed deal, Vickers Ballas will make a takeover offer for all ST Capital's shares. Afterwards, Singapore Technologies will have a put option entitling it to a 40% stake in Vickers Ballas. VICKERS BALLAS: Brokers announce merger --------------------------------------- ST Capital and Vickers Ballas are to merge after both posted large first-half losses. Vickers Ballas, a regional broking outfit, posted a loss by S$49.63 million in the first six months to June 30, following an additional $61.9million provisioning for bad debts. ST Capital, the financial services arm of the state-owned Singapore Technologies group, yesterday reported a $30.99 million interim loss, far more than analysts had expected. Under the proposed deal, Vickers Ballas will make a takeover offer for all ST Capital's shares. Afterwards, Singapore Technologies will have a put option entitling it to a 40% stake in Vickers Ballas. =============== T H A I L A N D =============== THAI PETROCHEMICAL: Plans to swap debt into equity -------------------------------------------------- Thai Petrochemical Industry PCL said Wednesday it plans to swap debt into equity, find strategic partners and raise capital as part of its 3 billion foreign currency debt restructuring program. Thai Petrochemical Industry, Thailand's largest integrated petrochemical producer, lost its blue-chip status after the country's financial crisis led to the Asia-wide economic slump, causing the company to swing from a profit to a loss since last year. In October, TPI and its unit TPI Polene PCL suspended indefinitely repayment of $4.1 billion in foreign currency loan principals, although both still service interest payments. TPI plans to spin off its operations in power plants, deep sea ports, oil storage and petrochemical storage tank farms. TPI would sell a stake of between 30% to 40% in these businesses to strategic foreign investors by issuing capital-raising shares. TPI also considering offering a stake in the company to some creditors in return for lowering its loan-payment obligations. TPI's international creditors agreed to allow the company to delay repayment of 3 billion in foreign currency debt. TPI expects to reach an agreement with the creditors on details of the debt-restructuring program by mid-December. The debt restructuring program is aimed o enabling TPI to pay lower interest rates and perhaps to make smaller monthly repayments on its 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 * * *