/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/980923.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 Wednesday, September 23, 1998, Vol. 1, No. 149 Headlines * C H I N A & H O N G K O N G * AWT HOLDINGS: $170m in creditor claims CHI CHEUNG INVESTMENT: Chi Cheung has investors on hold FORLUXE SECURITIES: Forluxe clients weigh options FU HUI HOLDINGS: Results announcement IDEAL PACIFIC: Sues former executives over lost $443m KONG TAI INTERNATIONAL: Results announcement PEREGRINE INVESTMENTS: Shareholders sue Peregrine directors RAYMOND INDUSTRIAL: Results announcement TOMSON PACIFIC: Lai defends $38m commission in WTCG deal * I N D O N E S I A * HM SAMPOERNA: Results announcement SEMEN GRESIK: Cemex renews bid for stake * J A P A N * KAJIMA CORPORATION: Moody's cuts long-term debt rating LONG TERM CREDIT: Rescue deal falls apart LONG TERM CREDIT: Sells stake in JV to UBS MITSUKOSHI: Issues profit warnings NISSHO IWAI: Securities losses have investors worried OBAYASHI CORPORATION: Moody's cuts long-term debt rating SHIMIZU CORPORATION: Moody's cuts long-term debt rating TAISEI CORPORATION: Moody's cuts long-term debt rating YAHAGI CORPORATION: Yahagi files for bankruptcy * K O R E A * ANAM SEMICONDUCTOR: $600 asset sale CHINSUNG INDUSTRY: Chinsung industry will liquidate CHUNGJOO ELECTRONICS: Firm is bankrupt HANHWA FINANCING: Hanhwa Financing is insolvent KIA MOTORS: Three car makers make fresh bids to buy Kia SAMICK HOUSING: Applies for court receivership SSANGYONG BROKERAGE: Hambrecht buys Ssangyong brokerage SSANGYONG GROUP: To sell oil unit * M A L A Y S I A * ACF HOLDINGS BHD: Results announcement BANK BUMIPUTRA MALAYSIA: Bank Bumiputra loses $2.8b CHAN TAK HAU PHYSICAL TREATMENT CENTRE: Winding-up petition DAYOCHI (M) SDN BHD: Winding-up petition EURO ELEGANT SDN BHD: Winding-up petition FIRE 'O' (M) SDN BHD: Voluntary winding-up KENG LOONG ENGINEERING & TRADING: Winding-up petition KENN KENN AUTO (S.P.) SDN BHD: Winding-up petition MIRAGOLD ENTERPRISE SDN BHD: Voluntary winding-up NASWIRA SDN BHD: Winding-up petition PACIFIC ACCORD SDN BHD: Winding-up petition PEMBINAAN DAPAT JAYA SDN BHD: Winding-up petition PROMET BHD: Additional loan defaults SIME DARBY BHD: Results announcement SIN HIAP BEE HARDWARE SDN BHD: Winding-up petition T-ZAK SDN BHD: Winding-up petition YCS POWER (M) SDN BHD: Winding-up petition YICHENG PROPERTIES SDN BHD: Voluntary winding-up * P H I L I P P I N E S * PHILIPPINE AIRLINES: Estrada sweetens PAL deal for staff * S I N G A P O R E * ALLIANCE TECHNOLOGY: Results announcement HONG FOK CORPORATION: Results announcement HWA HONG: Results announcement * T H A I L A N D * HANA MICROELECTRONICS: Securities granted by the SET KIAN GWAN: Debt burden forces it to sell stake KRUNG THAI BANK: To increase registered capital KRUNGTHAI THANAKIT: Merger with Union Bank has hit a snag NATURAL PARK: Directors approve capital-increase plan NAVA FINANCE AND SECURITIES: Results announcement PAGAENG INDUSTRY: Sale of Western Metals stake in jeopardy PRANDA JEWELLERY: Results announcement RENOWN LEATHERWEAR: Negotiates with suppliers SIAM COMMERCIAL BANK: Plans to increase capital SLC LEASING: Sues executives of former parent firm THAI PETROCHEMICAL: Among first to restructure debt THAI RUNG UNION CAR: Unbuckles 25% stake in Autolift UNION ASIA FINANCE: SEC gathers evidence against execs ================================= C H I N A & H O N G K O N G ================================= AWT HOLDINGS: $170m in creditor claims -------------------------------------- According to the SCMP, shares in freight forwarder AWT Holdings rose 9 percent to 2.4 cents yesterday despite facing claims from its creditors for $170million. Uncertainty enveloped the firm yesterday when it revealed its overall financial position would depend on the outcome of negotiations with its creditors. The firm said its property arm was suffering cash-flow problems while its core business - freight forwarding - still had working capital. It said it had utilised a combined $125 million banking and finance facility. To alleviate cash-flow problems, the firm said it planned to sell certain properties subject to creditors' approval. The company also said that one of its secured bank creditors has exercised its power last month to sell 36 car parks. It is also facing a $90 million contingent liability arising from its property arm's alleged breach of a property contract. CHI CHEUNG INVESTMENT: Chi Cheung has investors on hold ------------------------------------------------------- According to the Hong Kong Standard, real estate developer Chi Cheung Investment yesterday asked that its shares be suspended from trading pending an announcement. That came after Chi Cheung shares fell 88 percent to 83 cents on the day. Earlier the company stated that it would report a loss for the first half of 1998 but knew of no other reason for the decline. In July, Chi Cheung cancelled plans for new shares to pay for part of a Beijing property that it agreed to buy in May but said it would make the purchase anyway. FORLUXE SECURITIES: Forluxe clients weigh options ------------------------------------------------- According to the SCMP, liquidators of collapsed Forluxe Securities are writing to all 600 creditors to give options for handling the court case they fear could span nine months. The court dismissed the initial proposal where proceeds from the sale of shares would be divided between creditors regardless of their status, amid fears of prejudice to clients with a proprietary interest. The options left would be whether to go ahead in court alone as Forluxe with their claims, amalgamate with CA Pacific or wait until CA Pacific has a ruling and then proceed. Nelson Wheeler Corporate Reconstruction and Insolvency managing director Nick Hill said that this is an emotional issue and it would be better to ask creditors of their comments. More than 100 complaints were received initially from investors claiming they were owed $16.7 million. A shortfall of almost $40 million was identified in June. Mr Hill said the latest figure of how much has been realised will be worked out this week. Costs to date are also being calculated. FU HUI HOLDINGS: Results announcement ------------------------------------- Hit by the Asian crisis, Fu Hui Holdings had a $64.8 million net loss for the six months to June 30 compared to a $1.1 million net profit for the corresponding period last year. Chairman So kwok-hoo said the interim loss was caused by reduced sales performance on gold, jade and jewellery as well as the slide of property investments and short-term listed investments, reflected as exceptional loss. Turnover for local sale and marketing of gold, jade and jewellery fell 55.2% to $125 million for the six-month period. But turnover on gold, jade and jewellery on the mainland grew from $589,000 to $14.5 million. IDEAL PACIFIC: Sues former executives over lost $443m ----------------------------------------------------- According to the SCMP, Ideal Pacific is to sue former directors for $443 million in losses arising from an alleged fraud. Former chairman Alfred Ip Man-man and three former executive directors, Helen Fu Wai-hung, Simon Tam Kam-wing and Au Wing-cheung are alleged to have conspired to falsify accountig records and fabricate sales transactions to defraud the company of about $300 million over several years to March 31. Police are investigating the allegations and Company secretary Mr Lam, who is also a director of Central Central, said after the company's annual meeting yesterday that the independent committee set up by the company will finish an investigation by the end of this month. He said Ideal Pacific had implemented tighter internal control. Auditor Cooper & Lybrand, which has handled Ideal Pacific's auditing since its listing in 1994, was reappointed yesterday. KONG TAI INTERNATIONAL: Results announcement -------------------------------------------- Interim net loss at property investment company Kong Tai International has widened to $115.5 million for the next six months ended June 30 compared to a loss of only $12.3 million for last year. The result was despite an increase of 694 % in its turnover to $77.2 million. The group said it incurred a net exceptional loss of $76.8 million after including exceptional gains during the period. The exceptional loss included a $78.3 million provision for diminution in value of investment properties under development, and a $14.7 million loss on disposal of investment properties. The interim loss was mainly due to the charges for the revaluation of certain properties to current market value. Chairman David Wong said that during the first six months of 1998 it had become more difficult for Kong Tai to complete transactions. PEREGRINE INVESTMENTS: Shareholders sue Peregrine directors ----------------------------------------------------------- The Hong Kong Standard reports that disappointed shareholders continue to hound the directors of collapsed Peregrine Investments Holdings. Cheeroll Ltd, a shareholder of Peregrine, has filed a suit against four former officials of Peregrine - founder and former chairman Philip Leigh Tose and his three associates Francis Leung Pak-to, Peter Wong Wing-cheong, and Allan Kenneth Mercer - to recover losses they incurred because of what was alleged as misleading claims made by the executives about Peregrine's direction. They have 14 days to answer the summons. Cheeroll claimed three statements issued by the directors last year were materially false and misleading and caused the plaintiff heavy losses. Cheeroll claimed the four either misrepresented or were in breach of duty when they issued statements to shareholders concerning Peregrine's financial conditions and business prospects. Cheeroll said these statements were in particular contained in an announcement dated Oct. 26, 1997, issued by the defendants and published in the press on Oct. 27, 1997, and in financial results issued on Dec 11 and a letter circular dated Dec 17. On Oct. 27, Peregrine took out a full-page announcement in some newspapers to debunk talks that it was about to collapse. In the statement, Mr Tose acknowledged that profits in Peregrine's equity trading and derivatives operation had been seriously hit by the Hong Kong market's volatility. However Peregrine claimed that despite that revenues had held up better than expected. It also claimed that its fixed-income group had an unaudited net profit of about $147.25 million for the period between Jan 1 and Oct 24. The fixed-income arm was ultimately the main cause of Peregrine's collapse early this year, following the failure of an Indonesian taxi firm to pay its debts to Peregrine. The summons came after a decision last week by a judge to keep control over the liquidation of Peregrine's fixed- income unit. RAYMOND INDUSTRIAL: Results announcement ---------------------------------------- Raymond Industrial, a home electrical appliance manufacturer in Hong Kong, has reported a $9.88 million attributable loss for the six months to June, a turnaround from the $7.56 million profit it earned in the same period last year. Interim dividend has been cut from three cents a share last year to two cents. Chairman Wilson Wong said the 34.6% fall in turnover from last year's $184.7 million to $120.6 million was the main reason for the poor performance. TOMSON PACIFIC: Lai defends $38m commission in WTCG deal -------------------------------------------------------- According to the SCMP, court case continues regarding fees of $38.5 million paid to fraud suspect Arthur Lai Cheuk- kwan for his role in the World Trade Centre Group (WTCG) takeover. Lai denies that the two commissions - HK $26.4 million and A$2 million were bribes for his part in the introduction and placement of another 31.35 percent of the shares to the other parties. The fees were paid by Tomson Pacific and Bond Corp International, now known as WTCG. Lai said that before the deal, the highest commission he had been paid was HK$7 million to HK$8 million. He said he did not mention the Tomson Pacific fees to his colleagues at Chin Tung Holdings, where he was chairman, because it was not his habit to do so. He told the court he was fully aware that unless the 31.5 percent of shares were all placed with independent parties, there was a risk that Tomson Pacific would have to fund a general offer, which would cost them HK$1 billion. He said it would be commercially sound for this not to have to be the case and that there was a huge financial advantage to Tomson Pacific in the deal going through without the SFC requirement of a general offer. ================= I N D O N E S I A ================= HM SAMPOERNA: Results announcement ---------------------------------- Indonesia's third-largest clove cigarette producer, HM Sampoerna, reported a first-half net loss of 1.822 trillion rupiah, compared with the net profit of 185.68 billion rupiah a year earlier as the company continued to recognize foreign-exchange losses. The company's foreign-exchange loss and swap costs totaled 1.99 trillion rupiah based on a rupiah exchange rate of 14,900 rupiah to the US dollar as of June 30, said Jonathan Zax, the company's corporate secretary. That compares with an exchange rate of 4,650 rupiah to the dollar at the end of last year. Sales, however, rose 43% to two trillion rupiah. Mr Zax said that consumer shifts into hand-rolled cigarettes, which have higher margins compared with machine-rolled cigarettes, and the rise in prices were sufficient to offset increased imported material costs. SEMEN GRESIK: Cemex renews bid for stake ---------------------------------------- Mexican cement company Cemex has renewed it bid for a stake in Semen Gresik, a partially privatised Indonesian cement company. Cemex bid $114.6m, for a 14% stake in the company. The government had earlier rejected a bid to take a 35% stake in Semen Gresik. Cemex still faces possible conterbids next week from Holderbank, Heidelberger and Lafarge. ========= J A P A N ========= KAJIMA CORPORATION: Moody's cuts long-term debt rating ------------------------------------------------------ The Asian Wall Street Journal reported that Moody's Investor Services has downgraded the senior unsecured long- term debt ratings of four Japanese general construction companies. The downgrades reflect concerns over persistent pressure on earnings and the companies' highly leveraged positions. These companies cash flows may also reduce as there is a weak construction demand from the private sector. Kajima Corporation was downgraded from B-double-A1 to B-double-A3, due to falling profit margins, high debt, and substantial asset write-off. LONG TERM CREDIT: Rescue deal falls apart ----------------------------------------- The Associated Press a compromise plan to resuscitate Japan's troubled banking system appeared to be unraveling today, as ruling and opposition party leaders publicly fought over just what was agreed upon. Prime Minister Keizo Obuchi struck the banking bill deal with opposition parties late last week as he prepared to leave for his first summit with U.S. President Clinton. At issue is the fate of the ailing Long-Term Credit Bank of Japan Ltd. and other lenders staggering under the weight of soured loans, many of which were extended before Japan's economy entered a prolonged slump nearly 10 years ago. En route to the United States, Obuchi signaled today that LTCB, one of the country's biggest banks, would not be allowed to founder. That appeared to directly contradict opposition claims the bank would be declared insolvent and nationalized. "If the Long-Term Credit Bank were to fail, it would cause a major impact on the global economy," Obuchi told reporters. LONG TERM CREDIT: Sells stake in JV to UBS ------------------------------------------ The Wall Street Journal reports Long Term Credit Bank agreed with UBS AG of Switzerland to restructure the ownership of their joint ventures in Japan. The banks said LTCB will sell its 50% stake in the asset-management business UBS Brinson to UBS. LTCB Warburg Securities Ltd., their investment-banking joint venture, will be resturctured with a capital injectionso that UBS and third- party designees will control 66.67% of the capital, while LTCB's stake will fall to 33.33% from 40%. MITSUKOSHI: Issues profit warnings ---------------------------------- The Financial Times reports Department store operator Mitsukoshi has warned it has cut its earlier earnings forecasts for the first half of this year in half, from Y1bn to Y450mn. This compares with losses of Y33.8bn in the same period the previous year. NISSHO IWAI: Securities losses have investors worried ----------------------------------------------------- The Financial Times reports shares of Nissho Iwai suffered as investors remian concerned about unrealised losses on securities holdings and its exposure in Asia. The Times says Nissho Iwai's high level of securities investments relative to its equities has left it vulnerable to speculation. Analysts believe Nissho Iwai's unrealised losses on its equity holdings could be Y100bn, compared with its declared loss on equities of Y25bn at the end of March. OBAYASHI CORPORATION: Moody's cuts long-term debt rating -------------------------------------------------------- The Asian Wall Street Journal reported that Moody's Investor Services has downgraded the senior unsecured long- term debt ratings of four Japanese general construction companies. The downgrades reflect concerns over persistent pressure on earnings and the companies' highly leveraged positions. These companies cash flows may also reduce as there is a weak construction demand from the private sector. Obayashi Corporation was downgraded from B-double- A1 to B-double-A2, due to expectation that it will not reduce debt in short term. SHIMIZU CORPORATION: Moody's cuts long-term debt rating ------------------------------------------------------- The Asian Wall Street Journal reported that Moody's Investor Services has downgraded the senior unsecured long- term debt ratings of four Japanese general construction companies. The downgrades reflect concerns over persistent pressure on earnings and the companies' highly leveraged positions. These companies cash flows may also reduce as there is a weak construction demand from the private sector. Shimizu Corporation was downgraded from A3 to B- double-A3, due to impaired capital position following major asset write-offs. TAISEI CORPORATION: Moody's cuts long-term debt rating ------------------------------------------------------ The Asian Wall Street Journal reported that Moody's Investor Services has downgraded the senior unsecured long- term debt ratings of four Japanese general construction companies. The downgrades reflect concerns over persistent pressure on earnings and the companies' highly leveraged positions. These companies cash flows may also reduce as there is a weak construction demand from the private sector. Taisei Corporation was downgraded from B-double-A2 to B-single-A1, due to concerns about company's large debt, asset write-offs, and erosion of assets and equity. YAHAGI CORPORATION: Yahagi files for bankruptcy ----------------------------------------------- The Asian Wall Street Journal reported the Yahagi Corporation has filed for bankruptcy with the Nagoya District Court. Yahagi is an iron trader and software maker with debts currently estimated at 3.57 billion yen ($27 million). A statement for Yahagi said that its earnings have been hurt as orders from Kyoei Steel fell once Kyoei reduced its ownership stake in Yahagi. It was also reported that the direct cause of the bankruptcy was due to difficulties in fund raising brought about by concerns of the company's creditworthiness after Yahagi's former senior management improperly issued promissory notes. ========= K O R E A ========= ANAM SEMICONDUCTOR: $600 asset sale ----------------------------------- The Financial Times reports chipmaker Anam Semiconductor is close to signing a deal with foreign investors to sell part of its assets for $600m. The deal was arranged by Salomon Smith Barney Holdings. The sale, which is likely to be final by the end of the month, is designed to attract $2.3bn-$2.5bn in total foreign investments. CHINSUNG INDUSTRY: Chinsung industry will liquidate --------------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Chinsung Industry Company has decided to liquidate. CHUNGJOO ELECTRONICS: Firm is bankrupt -------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Chungjoo Electronics Company has gone bankrupt. HANHWA FINANCING: Hanhwa Financing is insolvent ----------------------------------------------- The Seoul District Court advertised in the Korean language Maeil Kyungje that the Hanhwa Financing Company is no insolvent. Creditors have until October 16 to file their claims. The company's address is 111-5 Sogong-dong, Chung- gu, Seoul and the representative is Mr. Yi Yim-sung. KIA MOTORS: Three car makers make fresh bids to buy Kia ------------------------------------------------------- According to the SCMP, Samsung Motors, Daewoo Motor and the country's largest car-maker, Hyundai Motor, submitted tenders for Kia Motors and Asia Motors before yesterday's deadline for bids, a Kia spokesman said. Hyundai said it had submitted an independent bid for Kia and Asia Motors instead of bidding together with a range of Hyundai Group affiliates as it had done in the first round. Analysts were sceptical about the auction's chances of success after Ford Motor pulled out of the race, saying the debts of Kia and Asia Motors Corp made them difficult to rehabilitate. They said that the collapse of the first round, and Ford's withdrawal following woefully inadequate debt write-offs, was a poor sign for the future of the car sector. Samsung, which only entered the car industry earlier this year, appears intent on winning control of Kia to keep its car business afloat. SAMICK HOUSING: Applies for court receivership ---------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Samick Housing Company applied for court receivership on September 17, 1998. A statement from the Korean Stock Exchange criticized the late release of this information, since it usually supervises the trading of the stocks of companies applying for court protection. SSANGYONG BROKERAGE: Hambrecht buys Ssangyong brokerage ------------------------------------------------------- The SCMP reports that Hambrecht and Quist Group, a United States investment bank, plans to buy a controlling stake in Ssangyong Investment & Securities, the first foreign takeover of a South Korean brokerage. H&Q's Asian venture capital unit will buy 28.11 percent of the company from Ssangyong Group for a nominal amount of US$1 and a future consideration to be determined by the performance of Ssangyong Securities stock. The San Francisco-based group will also inject 150 billion won into the brokerage by November to bolster its finances. H&Q will inject capital by purchasing new shares and convertible bonds. The investment is the latest foray into struggling Asian brokerages by Merrill Lynch and other foreign investors. SSANGYONG GROUP: To sell oil unit --------------------------------- According to a report in the SCMP, Ssangyong Group has announced it will sell its joint venture oil refinery, one of the nation's most profitable companies which earned 1,462 won per share in the first six months of the year, an 18.7 per cent advance on a year earlier despite fuel demand fall. The decision underscores just how dire Ssangyong's finances have become, the legacy of a failed multibillion dollar investment in vehicles made by the eldest of three brothers who run a group of myriad businesses. Years of reckless expansion, fuelled by cheap loans, left such firms as Hyundai, Samsung and Daewoo mires in debt they could no longer afford. Confronted with a shrinking economy and higher interest rates, these groups are now preparing to swap entire companies at the behest of the government. For Ssangyong, it is a question of survival. Ssangyong Cement, its flagship and Korea's biggest cement producer, has about three trillion won of debt, about a third of which stems from loan guarantees made to Ssangyong Motors, which the group sold to rival Daewoo earlier this year. The cement company's interest expenses doubled in the first six months of the year, because of the extra load, to 108 billion won, almost double its operating profit. The company has already cut wages by fifth and staffing levels by about 46 per cent to weather the storm. It has a 28 per cent stake in Ssangyong Oil Refining. Ssangyong Oil Refinery's joint venture partner, Saudi Arabian Oil (Aramco), the world's biggest oil company, is a possible buyer. According to Yonhap News Agency, Aramco may pay US$500 million to take a controlling stake, four times the present market value of Ssangyong Cement's stake. For Aramco, which typically makes investments to secure customers for its crude oil, increasing the stake could involve moving into the marketing of oil products in Korea - a whole new business. =============== M A L A Y S I A =============== ACF HOLDINGS BHD: Results announcement -------------------------------------- ACF Holdings Bhd (listed on the KLSE) reported a pre-tax loss of RM45.007mil for the half year ended 30/6/98, compared to a previous pre-tax profit of RM30.118mil. BANK BUMIPUTRA MALAYSIA: Bank Bumiputra loses $2.8b --------------------------------------------------- According to the SCMP, Bank Bumiputra Malaysia yesterday reported a M$1.41 billion net loss in the year to March 31 and revealed it had been recapitalised by the government. The bank recorded a pretax loss of $1.39 billion, reversing a profit of $724.26 million the previous year. Operating profit rose about 9 percent to $1.08 billion. The bank said the government's investment arm Khazanah Nasional had pumped $1.1 billion in to raise its risk- weighted capital-adequacy ratio to 9.7 per cent. The recapitalisation, comprising $400 million in ordinary share capital and $700 million irredeemable cumulative convertible preference shares, was completed by Sept 2. Bank Bumiputra chief executive Abdul Aziz Othman was bullish on the bank's prospects for government actions and said whether or not the bank would make a recapitalisation would depend on the ability of borrowers to repay their financial obligation. A finance analyst with a local brokerage said the loss levels at Bank Bumiputra were somewhat lower than market expectations. Bank Bumiputra's loan loss provisions swelled to $2.47 billion, up from $274.87 million previously. The bank's net non-performing loans surged to 15.7 per cent at the end of March, from 6.6 percent earlier. Total loan exposure at the bank was at $28.3 billion with group levels at $36.2 billion, of which $7 billion at the bank and $7.4 billion at group have been classified as bad debts. Mr Abdul Aziz said the bank was pursuing the sale of 65 per cent of its non-performing loans to government agency Pengurusan Danaharta Nasional. He said negotiations with several foreign banks to sell the bank's foreign currency loans, persently $750 million, were in their final stages. The Hong Kong Standard reported on the same incident, describing it as one of the biggest losses in the country's banking history as it set aside money for ballooning bad loans. According to the report, the bank said it swung to a net loss of 1.41 billion ringgit for the year ended March 30, from a profit of 455.6 million ringgit in the year-earlier period. The bank set aside 2.47 billion ringgit for bad loans compared with 274.8 million ringgit a year ago. CHAN TAK HAU PHYSICAL TREATMENT CENTRE: Winding-up petition ----------------------------------------------------------- The members of Chan Tak Hau Physical Treatment Centre Sdn Bhd on 15/9/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 21/10/98. DAYOCHI (M) SDN BHD: Winding-up petition ---------------------------------------- Yat Seng Construction Sdn Bhd on 24/7/98 petitioned for the winding-up of Dayochi (M) Sdn Bhd. The petition is directed to be heard on 27/11/98. EURO ELEGANT SDN BHD: Winding-up petition ----------------------------------------- Lee Hin Furniture Manufacturing Sdn Bhd on 27/8/98 petitioned for the winding-up of Euro Elegant Sdn Bhd. The petition is directed to be heard on 15/10/98. FIRE 'O' (M) SDN BHD: Voluntary winding-up ------------------------------------------ The members of Fire 'O' (M) Sdn Bhd on 19/9/98 resolved to wind-up the company voluntarily. Creditors of the company are requested to submit their claims before 30/10/98. KENG LOONG ENGINEERING & TRADING: Winding-up petition ----------------------------------------------------- Bank of Tokyo Mitsubishi (Malaysia) Bhd on 24/6/98 petitioned for the winding-up of Keng Loong Engineering & Trading Sdn Bhd. The petition is directed to be heard on 6/10/98. KENN KENN AUTO (S.P.) SDN BHD: Winding-up petition -------------------------------------------------- Sony (Malaysia) Sdn Bhd on 11/8/98 petitioned for the winding-up of Kenn Kenn Auto (S.P.) Sdn Bhd. The petition is directed to be heard on 15/10/98. MIRAGOLD ENTERPRISE SDN BHD: Voluntary winding-up ------------------------------------------------- The members of Miragold Enterprise Sdn Bhd on 18/9/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 20/10/98. NASWIRA SDN BHD: Winding-up petition ------------------------------------ Felda Engineering Service Sdn Bhd on 13/8/98 petitioned for the winding-up of Naswira Sdn Bhd. The petition is directed to be heard on 13/11/98. PACIFIC ACCORD SDN BHD: Winding-up petition ------------------------------------------- Bank of Commerce (M) Bhd on 15/6/98 petitioned for the winding-up of Pacific Accord Sdn Bhd. The petition is directed to be heard on 30/10/98. PEMBINAAN DAPAT JAYA SDN BHD: Winding-up petition ------------------------------------------------- Fadara Ferrocrete Sdn Bhd on 2/9/98 peititoned for the winding-up of Pembinaan Dapat Jaya Sdn Bhd. The petition is directed to be heard on 27/11/98. PROMET BHD: Additional loan defaults ------------------------------------ Promet Bhd (listed on the KLSE) said it has additional defaults on both principal and interest payments for facilities granted by the Export-Import Bank of Malaysia and Omega Securities Sdn Bhd. Promet director said Promet units which defaulted were Orion-Promet (VBT) Ltd, Promet International Ltd, Mesra Properties Sdn Bhd. SIME DARBY BHD: Results announcement ------------------------------------ Sime Darby Bhd. continues to suffer from heavy losses at its banking unit, with the group posting a net loss of 540.9 million ringgit for the year ended June 30. The loss compares with 815.4 million ringgit net profit posted the previous year. Turnover slipped to 12.08 billion ringgit from 13.24 billion ringgit, and the loss per share was 23.2 sen compared with earnings per share of 35.1 sen the previous year. In a statement issued over the weekend, Sime Darby was hopeful that it would return to the black with hefty profits of 800 million ringgit to 900 million ringgit for the current financial year. SIN HIAP BEE HARDWARE SDN BHD: Winding-up petition -------------------------------------------------- Ann Yak Siong Hardware Sdn Bhd on 4/8/98 petitioned for the winding-up of Sin Hiap Bee Hardware Sdn Bhd. The petition is directed to be heard on 27/11/98. T-ZAK SDN BHD: Winding-up petition ---------------------------------- BSN Commercial Bank (Malaysia) Bhd on 4/8/98 petitioned for the winding-up of T-Zak Sdn Bhd. The petition is directed to be heard on 20/11/98. YCS POWER (M) SDN BHD: Winding-up petition ------------------------------------------ UBN Tower Sdn Bhd on 24/8/98 petitioned for the winding-up of YCS Power (M) Sdn Bhd. The petition is directed to be heard on 10/2/99. YICHENG PROPERTIES SDN BHD: Voluntary winding-up ------------------------------------------------ The members of Yicheng Properties Sdn Bhd on 18/9/98 resolved to wind-up the company voluntarily. Creditors of the company are requested to submit their claims before 20/10/98. ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: Estrada sweetens PAL deal for staff -------------------------------------------------------- According to the SCMP, Philippine Airlines unions began voting yesterday on a last ditch deal to save PAL. Earlier in the day, president Joseph Estrada offered one government board seat to employees and called on the unions and management to end their dispute. Presidential spokesman said the labor department would oversee a two-day referendum among PAL employees, starting yesterday afternoon, to decide whether to accept a management offer of an ownership-sharing scheme. The result of the referendum is non binding, but the government saw a chance to persuade the Palea (PAL Employees Association) to reconsider its decision to reject the offer of the PAL management, if the vote of the union members is overwhelming. The government holds a 33 percent stake in PAL. Palea yesterday called on the government to extend whatever assistance it can to help and save PAL including the immediate takeover of its operations until a lasting solution to various problems confronting PAL is achieved. Mr Estrada responded that this was not possible. He said that the government lacked the funds and also congressional approval was needed. Hundred of passengers lined up yesterday outside PAL's offices in the financial district of Makati to seek refund. The government said it was coming up with contigency plans to deal with the closure. According to the Hong Kong Standard, PAL yesterday made a surprise move seeking a further 60-day moratorium on servicing US$2.1 billion in debts to foreign and local creditors. Some banking analysts believe the move is aimed at keeping creditors at bay a while longer for an orderly liquidation of the company rather than at preventing the airline from closing. Analysts said yesterday the scheduled collapse of debt- ridden Philippine Airlines is not expected to pose a serious risk to the country's banking system, but the demise would clearly add to the bad-loan difficulties of local banks and have far-reaching economic ramifications. PAL has failed to service its debt since June, when it sought a moratorium from the Securities and Exchange Commission pending the submission of a rehabilitation plan that was due yesterday. Of the airline's total liabilities, domestic banks are owed US$233 million in dollar-denominated loans, along with a further 1.2 billion pesos in peso loans. This represents a relatively small 0.7 percent of total loans in the Philippine banking system. A committee of local bank creditors led by Philippine National Bank, the biggest creditor with a fully secured exposure of US$80.2 million, has so far made no comment on how it intends to recover its debts. The bulk of the airline's loans are owed to foreign banks and aircraft lessors. About US$1.2 billion is owed to a consortium of European financial institutions in loans to finance an ill-timed aircraft modernisation program. Another US$400 million is owed to US financial institutions, led by the US Import- Export Bank. Most of the airline's US$2.1 billion in debt is secured against aircraft and engines and, to a far lesser extent, property, ticket sales and government guarantees. But documents filed by the airline to the SEC show that at the end of April there were numerous loans that were unsecured. PAL also used an exchange rate of 38 pesos to a US dollar, which has strengthened by about 13 percent since then. ================= S I N G A P O R E ================= ALLIANCE TECHNOLOGY: Results announcement ----------------------------------------- Singapore BusinessTimes reports Alliance Technology and Development yesterday said its net loss had widened 7 per cent to $5.8 million for the half year to June 30. Turnover dropped 27 per cent to $16.7 million. Loss per share was unchanged at 7 cents, while net tangible assets per share were 83 cents, down from $1.25 previously. No dividend was declared. HONG FOK CORPORATION: Results announcement ------------------------------------------ Singapore BusinessTimes reports Hong Fok Corp has sunk deeper into the red, with a loss of $15.8 million for the first half of 1998 due to extraordinary losses which climbed to $10.3 million from $1.1 million. The extraordinary losses included a provision of $2.6 million against the fall in value of long-term investments and a $4.7 million loss from the disposal of an investment property. In the same period last year, the net loss was $2.95 million. Interim net tangible asset backing per share this year fell to $6.31 from $7.47 due to a net deficit caused by the revaluation of investment properties. Revenue, however, rose 11 per cent to $29.2 million due to higher gross rental income. HWA HONG: Results announcement ------------------------------ Singapore BusinessTimes reports Hwa Hong's net profit fell 57 per cent to $3.6 million in the first half of 1998, as revenue tumbled 53 per cent to $115.0 million. Earnings per share fell to 2.2 cents from 5.18 cents. Hwa Hong said revenue from its construction subsidiary fell to $80.0 million from $195.6 million, while net premiums recorded by its insurance subsidiary fell to $15.0 million from $18.9 million. The insurance subsidiary also made a provision of $5.31 million against the fall in value of its equity investments. Net tangible asset backing per share fell by 41 cents to $2.50 due to a revaluation of the company's investment properties in Singapore. There was an extraordinary gain of $1.97 million, mostly from the sale of its interests in its insurance subsidiary. =============== T H A I L A N D =============== HANA MICROELECTRONICS: Securities granted by the SET ---------------------------------------------------- The Stock Exchange of Thailand (SET) allowed The Hana Microelectronics Public Company Limited (HANA) securities to be traded on the SET after finishing capital increase procedures, starting 22 September 1998. KIAN GWAN: Debt burden forces it to sell stake ---------------------------------------------- Kian Gwan (Thailand) Plc (KG) will sell its 90 per cent stake in The Greater London House, an office building in London, for the equivalent of Bt2.85 billion in order to lessen the company's debt burden and finance future investments. The transaction equals 84 per cent of its total assets. According to the statement filed with the Stock Exchange of Thailand, KG said its wholly-owned subsidiary -- Kian Gwan Land Ltd -- plans to sell its 90 per cent stake in the office building for PDS 41.31 million. Kian Gwan Land will receive payment from the buyer, Resolution Camden (CI) Ltd, when KG's shareholders approve the sale and share transfer. Kian Gwan Land has recorded outstanding debts of PDS 28.04 million of which the company owes PDS 21.9 million to a British bank and the remaining PDS 6.14 million to its parent company in Thailand. Analysts commented that the transaction would be the only solution for KG to improve its liquidity. Finally, all local property developers with shrinking operating income will have to sell their assets in order to survive through the tough economic situation. KRUNG THAI BANK: To increase registered capital ----------------------------------------------- The Bangkok Post reports state-owned Krung Thai Bank (KTB) will increase its registered capital to ensure survival, according to bank sources. Its capital fund has been wiped out by the need to provide more than 80 billion baht for losses on loans and debt write-offs. The bank would increase its registered capital by at least 130 billion baht this December through the conversion of debt to the Financial Institutions Development Fund (FIDF) into shares by the end of the year. KTB sources said the needed new capital would be huge because of the bank's non-performing loans, estimated at 240 billion baht or about 32% of the bank's total lending. The amount was based on the current loan classification rules which define any loan as non-performing if no payment has been made for six months. At the end of June, the KTB's provision for loan losses totalled 54.23 billion baht. Its shares had a book value of only 7.70 baht, and traded at six baht yesterday. The book value would drop to -0.4 baht if full provision was made, according to an analyst. KTB's assets amounted to 813 billion baht, deposits 634 billion and credit extension 678 billion baht. KRUNGTHAI THANAKIT: Merger with Union Bank has hit a snag --------------------------------------------------------- The Bangkok Post reports the merger of Krungthai Thanakit Finance and Securities and Union Bank of Bangkok has hit a legal snag, with the finance company apparently unable to take over the bank's licence. The merger was one of the cornerstones of the financial reform plan the government announced last month. State- owned Krungthai Thanakit was to absorb Union Bank and 12 finance companies seized by regulators. After the mergers, it would become a commercial bank. But a banking source said that Article 38 of the Mergers and Acquisitions Act states that no business licences can be transferred following a merger. If the law prohibits Union Bank from transferring its licence, then one option would be for Union Bank to become the core institution in the larger merger involving all the finance companies. The other option is for the Finance Ministry to issue a new banking licence to Krungthai Thanakit. Finance Minister Tarrin Nimmanhaeminda said officials were studying the legal issues, but that Krungthai Thanakit would remain the core for the mergers. A different method is being used for state-owned Radhanasin Bank and Laem Thong Bank, which are also merging. In this case, Laem Thong Bank is serving as the core company, but it will change its name to Radhanasin Bank after the merger. NATURAL PARK: Directors approve capital-increase plan ----------------------------------------------------- The Nation reports Natural Park Plc's board of directors approved a capital-increase plan from Bt3.88 billion to Bt19 billion to increase working capital and reduce debt burden. The 1.5 billion new shares will be sold to the existing shareholders at a ratio of one old share to four new shares, priced at Bt10 a piece. The subscription and payment period have been scheduled for Nov 16 to 20 and Nov 23 to 27. The board of directors are authorised to sell the remaining shares to other individuals and companies at the same price. NAVA FINANCE AND SECURITIES: Results announcement ------------------------------------------------- Nava Finance and Securities PCL reports results for the half-year ending June 30, 1998 as a net loss of Bt6.83 billion, which compares to a net profit of Bt159 million for the corresponding 1997 period. PAGAENG INDUSTRY: Sale of Western Metals stake in jeopardy ---------------------------------------------------------- The Bangkok Post reports Padaeng Industry Plc (PDI)'s accord to sell a 36% stake in the company to Western Metals (WML) for US$25 million (1,012.5 million baht) is in jeopardy as the Australian mining firm is having second thoughts. WML has proposed additional conditions to close the deal which was supposed to take place this month along with the transfer of an initial payment. Two months ago, PDI signed a memorandum of understanding to sell a 35% stake for 14 baht a piece in order to raise funds ahead of negotiating with its creditors to restructure its 3.04 billion baht debt. In the memorandum, WML agreed to transfer the funds to PDI in two portions starting with $5 million in September and the remaining $20 million in July next year. However, the transfer has been delayed and new conditions proposed which PDI directors are expected to discuss this week. The nature of conditions have not been disclosed. PRANDA JEWELLERY: Results announcement -------------------------------------- Pranda Jewellery PCL reports results for the half-year ending June 30, 1998 as a net loss of Bt259 million, which compares to a net loss of Bt54.8 million for the corresponding 1997 period. RENOWN LEATHERWEAR: Negotiates with suppliers --------------------------------------------- The Nation reports Renown Leatherwear Plc is negotiating with its suppliers in the United States, Brazil and Argentina for a one-month supplier credit to help it cope with the liquidity crunch. The company announced a Bt1.1 billion loss in the first half of this year due to higher operating costs caused by the weakened baht and lower export volume. Sale revenue dropped 50 per cent from the same period last year to Bt600 million. Atipun Wongpensri, assistant managing director, said Renown had cut its production capacity by half early this year to one million square feet per month. The company has not laid off any employees so far. SIAM COMMERCIAL BANK: Plans to increase capital ----------------------------------------------- The Bangkok Post reports Siam Commercial Bank will press ahead with plans to raise its capital to 40 billion baht by year-end with the issue of 3.045 billion new shares approved in May. Half of the new shares will be sold to two new strategic investors, according to Prakit Pradipasen, senior executive vice-president of Siam Commercial Bank. The remainder will be sold to existing bank shareholders. The Crown Property Bureau, now the largest shareholder in the bank with 26%, will subscribe to new shares to maintain its majority holding. Once the new share issue is completed, foreign shareholders will see their holdings jump to 49% from 32.9% of paid-up capital. But if the bank cannot place the new shares and raise capital, Siam Commercial Bank will enter into the government's recapitalisation scheme, Mr Prakit said. Japan's Long-Term Credit Bank will not subscribe to the new shares because of its own financial difficulties. But Sanwa Bank, another Japanese ally of Siam Commercial Bank, has said it would take up new shares to maintain its existing shareholdings. SLC LEASING: Sues executives of former parent firm -------------------------------------------------- The Asian Wall Street Journal report that the new management of SLC Leasing has filed 10 lawsuits totaling 1.5 billion baht ($37 million) against executives of its former parent Sitca Investment Finance & Securities and related parties. The lawsuits are based on SLC claims that after they had examined their company's books, they have found records showing accounting irregularities. Sitca Investment Finance & Securities PCL owned SLC Leasing until late last year. SLC Leasing is a auto leasing company formerly known as Sitca Leasing. Thai authorities closed its parent Sitca Investment Finance & Securities along with 55 other insolvent finance companies in December 1997. The Asian Wall Street Journal has earlier reported that the former parent company, Sitca Investment Finance & Securities had transferred almost 2 billion baht to Sitca Leasing (the previous name of SLC Leasing), and that the money went straight out again in cash or checks without vouchers to companies and individuals connected with Sitca management. Officials of Sitca Investment Finance & Securities PCL have also been accused of setting up five companies to borrow a total of 415 billion baht from Sitca and then use the money to buy new Sitca shares issued as part of a capital raising effort in November 1995. THAI PETROCHEMICAL: Among first to restructure debt --------------------------------------------------- The Bangkok Post reports Thai Petrochemical Industry Plc (TPI) is poised to become the first among scores of recession-hit Thai companies to complete extensive debt restructuring, using a Bank of Thailand blueprint, by the end of next month. TPI is negotiating with 140 lenders to convert 25% of its total annual interest charges of 10 billion baht into equity in the company. The lenders were given the option of converting interest into either preferred or common shares. TPI's debts total US$3.8 billion. Representatives from TPI and Chase Manhattan Bank, the company's debt-restructuring adviser, are visiting Europe and the United States to try to finalise negotiations with lenders. The debt-equity conversion is crucial for TPI. While personnel costs account for only 4% of the company's total expenditures, interest on loans accounts for 25%, which is now beyond the capability of TPI to service. TPI was also trying to spin off 50% of its shares in subsidiaries in ports, oil depots and electricity in order to raise $700 million to improve its liquidity over the next five years. After completing the debt-restructuring process, TPI proposes to stick to its core businesses of petrochemicals, oil refining and oil retailing, which contribute the bulk of its total revenues. The company's has forecast total revenues in both 1998 and 1999 of around 50 billion baht, compared with 29.9 billion baht last year. THAI RUNG UNION CAR: Unbuckles 25% stake in Autolift ---------------------------------------------------- The Nation Thai Rung Union Car Plc will sell a 25 per cent stake in Autolift (Thailand) Co -- producer of seat-belts, airbags and other automotive accessories -- to its partner Autolift AB of Sweden for Bt25 million with a buy-back agreement. The agreement was signed on Sept 15. Thai Rung will retain 15 per cent in the company, down from 40 per cent. The Thai company's stake in Autolift (Thailand) Co Ltd has a registered capital of Bt100 million. A Thai Rung Union Car Plc official said that because of the slump in the automotive sector, which has dropped by about 70 per cent, Autolift (Thailand) Co Ltd has not been registering profits. However, Thai Rung will still have the option of buying back the shares. UNION ASIA FINANCE: SEC gathers evidence against execs ------------------------------------------------------ The Nation reports SEC deputy secretary-general Prasarn Trairatvorakul revealed that the SEC has gathered evidence showing some executives of shutdown Union Asia Finance Plc used inside information for personal benefit. He noted that the evidence also showed some executives, who hold more than 5 per cent of the company's capital, failed to inform the SEC when the stake changed. The SEC is looking for more evidence for consideration if the executives should be prosecuted under civil or criminal law, he said. So far, the SEC has fined big-time investor Song Watcharasriroj and Finance One Plc's three executives of insider trading. 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 * * *