/raid1/www/Hosts/bankrupt/TCRAP_Public/980924.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Thursday, September 24, 1998, Vol. 1, No. 150

                    Headlines


* C H I N A   &   H O N G   K O N G *

AWT HOLDINGS: Changes to the issue of convertible notes
BENTON SHIH & CO: In members' voluntary liquidation
CHINA PRINTING & DYEING: Winding-up petition
CHINESE ESTATES: S&P lowers corporate credit rating
CHRISAN LIMITED: Winding-up petition

COSCO INTERNATIONAL: Results announcement
ECHO-SOUND LIMITED: Winding-up petition
ECKOXA MACHINERY COMPANY LIMITED: Winding-up petition
EVERBRIGHT BANK: Moody's assigns low ratings
FAR EAST ASIA SHIPPING LIMITED: Winding-up petition

INTERFORM CERAMICS: Seeks debt standstill
JBH ENTERPRISES LIMITED: Winding-up petition
JINHUI HOLDINGS: Results announcement
JINKO JEWELLERY ART LIMITED: Notice of creditors' meeting
LEE HING DEVELOPMENT: Results announcement

LINKROY INTERNATIONAL LIMITED: Amended winding-up petition
LUCKY UNICORN LIMITED: Winding-up petition
MARTIN TRANSPORTATION LIMITED: Winding-up petition
MASS RESOURCES DEVELOPMENT LIMITED: Winding-up petition
PCL ENTERPRISES: Results announcement

SHANGHAI PUDONG BANK: Moody's assigns low ratings
SHENZHEN DEVELOPMENT BANK: Moody's assigns low ratings
SING TAO HOLDINGS: Culturecom talks suspended
SINOCAN HOLDINGS: Feels squeeze under $600m in debts
W & H ENGINEERING LIMITED: Winding-up petition

WO KEE HONG: Results announcement


* I N D O N E S I A *

GARUDA INDONESIA: Garuda chalks up first-ever profits


* J A P A N *

ITOCHU: Sells 40% of its stake in Time Warner
LONG TERM CREDIT: Loan to former PM may have nixed deal
LONG TERM CREDIT: More details on UBS control of JV
MITA INDUSTRIAL: In patent flap with Xerox
NEC CORPORATION: To post 20 bln yen in first-half red ink

OKI ELECTRIC: Expects to lose 43 bln yen in FY98
TAIHEIYO SECURITIES: Sumitomo Life to buy 10% stake
TOSHIBA CORPORATION: Moody's downgrades debt ratings
YAMAHA CORPORATION: To restructure semiconductor business
YOKOGAWA ELECTRIC: Predicts 25% profit drop for FY98


* K O R E A *

JINRO LTD.: Jinro negotiation for capital injection
KEOPYUNG DISTRIBUTION: Granted court receivership
KEOPYUNG FASHION: Granted court receivership
KEOPYUNG INDUSTRY: Court rejects receivership application


* M A L A Y S I A *

DIAMOND IMPACT (M) SDN BHD: Winding-up petition
HICOM HOLDINGS: Talks with bondholders
HUME INDUSTRIES (MALAYSIA) BHD: Results announcement
KEJURUTERAAN ELEKTRIK A-Z SDN BHD: Winding-up petition
NYNEX NETWORK SYSTEMS (MALAYSIA): Voluntary winding-up


* P H I L I P P I N E S *

PHILIPPINE AIRLINES: PAL creditors moving to recover assets
PHILIPPINE AIRLINES: Union vote seals PAL fate


* S I N G A P O R E *

IPCO INTERNATIONAL: JV faces US$73 million in claims
LI XIN INDUSTRIES: Results announcement
ROTOL SINGAPORE: Results announcement
SECOND CHANCE ENTERPRISES: Results announcement
TWINWOOD ENGINEERING: Results announcement


* T H A I L A N D *

EAC MARKETING SERVICE: Transferred by parent to affiliate
EKACHART FINANCE: To sell shares to BNP Prime Peregrine


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

AWT HOLDINGS: Changes to the issue of convertible notes
-------------------------------------------------------
The Directors report that since the Company's announcement
dated 16th July, 1998 (the "July Announcement") and its
circular to its shareholders dated 17th July, 1998 (the
"July Circular"), the Group has received writs of summons
and letters of demand from various creditors and save in
respect of the Alleged Claim referred below, its maximum
exposure including all of these amounts to an aggregate sum
of approximately HK$170 million.

Having regard to the unaudited consolidated management
accounts for the 12 months ended 31st March, 1998 of the
Company and its subsidiaries (the "Group") and the
unaudited cashflow analysis for the freight forwarding
business of the Group for the six months ending 28th
February, 1999, the Directors are of the opinion that
currently the core business of the Group, being the
provision of freight forwarding services, has sufficient
working capital and does not have a going concern problem.

The Company, AWT Realty Limited ("Realty") and its
subsidiaries, and the property business of the Group are
experiencing cashflow difficulties. The overall financial
position of the Group will depend on the outcome of
negotiations of the members of the Group with its
creditors.

The Directors also announce that since its announcements
dated the 1st, 3rd, and 13th of August, 1998 (the "August
Announcements"), the Company and each of Expert Way Limited
and Excelbond Limited have agreed to certain changes to the
terms of the issue of convertible notes. The Expert Way
Agreement has been amended so that the initial conversion
price for the Expert Way Note is changed from being 125% of
the 10-day average closing price of the Shares ending on
the trading day prior to the date on which the issue of the
Expert Way Note is approved by the shareholders of the
Company (the "Shareholders Approval Date") to the lower of
(i) 125% of the 10-day average closing price of the Shares
ending on the trading day prior to the Shareholders
Approval Date, and (ii) the initial conversion price under
the Excelbond Note which is to be calculated as the lower
of 125% of the 10-day average closing price of shares
ending on the trading day prior to the Shareholders
Approval Date and HK$0.022.

As at 17th September, 1998, the latest practicable date
(the "Latest Practicable Date"), other than the Alleged
Claim, the Group's maximum exposure in respect of claims
made against its members (including letters of demand,
writs of summons and legal letters received from solicitors
representing various creditors) was HK$170 million,
representing a net increase of approximately HK$26 million
worth of claims since the July Circular.

As announced by the Company on 28th August, 1998, the
Company is in negotiations with its auditors regarding
audit fees. Once agreement is reached, audit will commence
and the Company expects that the audited results for the
year ended 31st March, 1998 will be available in November,
1998.


BENTON SHIH & CO: In members' voluntary liquidation
---------------------------------------------------
The creditors of Benton Shih & Co Consultancy Limited,
which is being voluntarily wound up, are required on or
before Oct 30 to send in their names, addresses and
particulars of their debts or claims to the Liquidators of
the said company, Lionel Mervyn Butcher at Caroline Centre,
10th Floor, 28 Yun Ping Road, Causeway Bay, Hong Kong, and
if so required by notice in writing from the liquidators,
are personally or by their solicitors to come in and prove
their debts or claims at such time and place specified in
such notice, or in default thereof, they will be excluded
from the benefit of any distribution before such debts are
proved.


CHINA PRINTING & DYEING: Winding-up petition
--------------------------------------------
Notice is hereby given that a petition for the winding-up
of China Printing & Dyeing Industrial Co. Limited
by the High Court of Hong Kong was, on the 9th day of
September, 1998, presented to the said Court by Cheung Siu
Kau 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.  


CHINESE ESTATES: S&P lowers corporate credit rating
---------------------------------------------------
Standard & Poor said it had cut the long-term corporate
credit rating of Chinese Estates Holdings and its
guaranteed issues to BB-minus from BBB-minus. While the
ratings were removed from CreditWatch, their outlook is
negative.

The downgrade reflects significant deterioration in the
company's financial strength stemming from the loss of more
than $2.2 billion from speculative investments in financial
derivatives. The investments indicates a willingness to
channel company funds into high-risk undertakings outside
core property investment and development business.

The negative outlook reflected concerns over refinancing
requirements the company faces when its floating-rate note
issue and bank loan facilities expire given difficult
property market conditions and the management's willingness
to engage in speculative investments.


CHRISAN LIMITED: Winding-up petition
------------------------------------
Notice is hereby given that a petition for the winding-up
of Chrisan Limited by the High Court of Hong Kong was, on
the 8th day of September, 1998, presented to the said Court
by Cheng Po Chu 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.  


COSCO INTERNATIONAL: Results announcement
-----------------------------------------
Cosco International, the construction and property firms,
went deeper into the red in the first six months of the
year, posting a $76.99 million loss compared to a $16.78
million loss in the same period last year. It had an $87
million exceptional loss from poor in property and other
investments. It said it made an exceptional loss of $35
million for diminution in the value of investments, a $37
million loss on diminution in the value of  a property
project of a joint venture company and $15 million loss on
provision for potential claims of certain contract.


ECHO-SOUND LIMITED: Winding-up petition
---------------------------------------
Notice is hereby given that a petition for the winding-up
of Echo-Sound Limited by the High Court of Hong Kong was,
on the 4th day of September, 1998, presented to the said
Court by So Wai Yee 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.  


ECKOXA MACHINERY COMPANY LIMITED: Winding-up petition
-----------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Eckoxa Machinery Company Limited by the High Court of
Hong Kong was, on the 9th day of September, 1998, presented
to the said Court by Tse Lai Man 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.  


EVERBRIGHT BANK: Moody's assigns low ratings
--------------------------------------------
Moody's assigned financial strength ratings ranging from D
to E to three new mainland commercial banks yesterday on
fears of a deteriorating financial situation. The ratings
reflect concerns over increasing pressure on the banks'
asset quality from the deteriorating operating environment
and their short history and unproven record in dealing with
more severe economic conditions.

Moody's gave Everbright Bank of China a bank financial
strength rating of D, the Shanghai Pudong Development Bank
an E-plus rating and Shenzhen Development Bank an E rating.

Moody's said commercial banks are experiencing rising loan
delinquencies and these difficult conditions have also led
to intensified competition in the system.

Moody's said the regulatory environment that was once
highly supportive has shifted priority towards imposing
discipline and improving the quality of the system, a
transition that was accelerated by the lessons of the
financial crisis elsewhere in Asia. Everbright and Shanghai
getting Ba1 and Not Prime. Shenzhen got Ba3 and Not Prime.


FAR EAST ASIA SHIPPING LIMITED: Winding-up petition
---------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Far East Asia Shipping Limited by the High Court of Hong
Kong was, on the 11th day of September, 1998, presented to
the said Court by Yeung Mei Lan and the petition is heard
on 21st of October, 1998. Other creditors who support or
oppose the making of the order may appear at the time of
the hearing.  


INTERFORM CERAMICS: Seeks debt standstill
-----------------------------------------
According to the SCMP, Interform Ceramics Technologies
yesterday said a 71.7 per cent owned subsidiary had
received writs this month from two creditors for repayment
of debts totalling $15 million. Interform said it was
negotiating with all its lending banks to reschedule debt
repayments. To date no standstill agreement with the
creditors had been reached. If this continued, the cash-
flow position of the company would be affected.


JBH ENTERPRISES LIMITED: Winding-up petition
--------------------------------------------
A petition for the winding up of JBH ENTERPRISES LIMITED   
was presented to the High Court on Sept 7 by Wu Tsui Ling
of Room 1232, Wah On House, Wah Fu Estate, Hong Kong, and
the said petition is directed to be heard before the court
at 11:00 am on Oct 14, and any creditor or contributory of
the said company desirous to support or oppose the making
of an order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by Tam
Lee Po Lin, Nina for Director of Legal Aid, 27th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong  on
payment of the regulated charges for the same.


JINHUI HOLDINGS: Results announcement
-------------------------------------
Deteriorating economic conditions pushed investment Jinhui
Holdings into red as it reported a $3.77 million
attributable loss for the six months to June 30, after
gaining $6.21 million n the first half of last year.
Turnover for the period plunged 41% to $556.49 million.
Loss per share was 0.72 cents.


JINKO JEWELLERY ART LIMITED: Notice of creditors' meeting
---------------------------------------------------------
A meeting of members of Jinko Jewellery Art Limited will be
held at Unit C, 10th Floor, Bing Fu Commercial Building,
450-454 Portland Street, Kowloon on Oct 18 at 12:00 noon to
consider the statement of affairs, list of creditors and
their estimated claims, to appoint liquidators, and to
appoint a committee of Inspections, if required.
Creditors may vote either in person or by proxy. Forms of
proxy must be lodge at Unit C, 10th Floor, Bing Fu
Commercial Building, 450-454 Portland Street, Kowloon


LEE HING DEVELOPMENT: Results announcement
------------------------------------------
Share investment and dealing company Lee Hing Development
has announced a $9.6 million attributable loss for the six
months to June 30 compared with a profit of $33.1 million
in the same period last year. The company suffered a $31.9
million exceptional loss arising from provisions for
diminution in value of long-term listed investments.


LINKROY INTERNATIONAL LIMITED: Amended winding-up petition
----------------------------------------------------------
An amended petition for the winding up of Linkroy
International Limited was presented to the High Court on
April 21  by Chun Fu Investment Company Limited whose
registered office at situate at Top Floor, Chinachem Golden
Plaza, 77 Mody Road, Kowloon, Hong Kong, and the said
amended petition is directed to be heard before the court
at 9:30 am on Oct 7, 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, Ford, Kwan & Co. at Suites
1505-8, Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui
East, Kowloon, Hong Kong on payment of the regulated
charges for the same.


LUCKY UNICORN LIMITED: Winding-up petition
------------------------------------------
A petition for the winding up of Lucky Unicorn Limited was
presented to the High Court on Sept 7 by Yu Chun Kit of
Room 2609, Lai Yuen House, Chuk Yuen Estate, Kowloon, and
the said petition is directed to be heard before the court
at 11:00 am on Oct 14, and any creditor or contributory of
the said company desirous to support or oppose the making
of an order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by Tam
Lee Po Lin, Nina for Director of Legal Aid, 27th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong  on
payment of the regulated charges for the same.


MARTIN TRANSPORTATION LIMITED: Winding-up petition
--------------------------------------------------
A petition for the winding up of Martin Transportation
Limited was presented to the High Court on Sept 4  by
Cheung Kam Chuen of Room 1322, Tai Tak House, Tai Yuen
Estate, Tai Po, New Territories, and the said petition is
directed to be heard before the court at 9:30 am on Oct 14,
and any creditor or contributory of the said  company
desirous to support or oppose the making of an order on the
said petition may appear at the time of hearing by himself
or his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong on payment of the
regulated charges for the same.


MASS RESOURCES DEVELOPMENT LIMITED: Winding-up petition
-------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Mass Resources Development Limited by the High Court of
Hong Kong was, on the 11th day of September, 1998,
presented to the said Court by Lai sing Jim and the
petition is heard on 21st of October, 1998. Other creditors
who support or oppose the making of the order may appear at
the time of the hearing.  


PCL ENTERPRISES: Results announcement
-------------------------------------
Electronics-manufacturer PCL Enterprises Holdings yesterday
announced an attributable loss of $4.86 million for the
first six months of this year, after gaining $6.73 million
for first half of last year. Loss per share stood at 1.4
cents compared with last year's 2.2 cents earnings, while
directors recommended no interim dividend.


SHANGHAI PUDONG BANK: Moody's assigns low ratings
-------------------------------------------------
Moody's assigned financial strength ratings ranging from D
to E to three new mainland commercial banks yesterday on
fears of a deteriorating financial situation. The ratings
reflect concerns over increasing pressure on the banks'
asset quality from the deteriorating operating environment
and their short history and unproven record in dealing with
more severe economic conditions.

Moody's gave Everbright Bank of China a bank financial
strength rating of D, the Shanghai Pudong Development Bank
an E-plus rating and Shenzhen Development Bank an E rating.

Moody's said commercial banks are experiencing rising loan
delinquencies and these difficult conditions have also led
to intensified competition in the system.

Moody's said the regulatory environment that was once
highly supportive has shifted priority towards imposing
discipline and improving the quality of the system, a
transition that was accelerated by the lessons of the
financial crisis elsewhere in Asia. Everbright and Shanghai
getting Ba1 and Not Prime. Shenzhen got Ba3 and Not Prime.


SHENZHEN DEVELOPMENT BANK: Moody's assigns low ratings
------------------------------------------------------
Moody's assigned financial strength ratings ranging from D
to E to three new mainland commercial banks yesterday on
fears of a deteriorating financial situation. The ratings
reflect concerns over increasing pressure on the banks'
asset quality from the deteriorating operating environment
and their short history and unproven record in dealing with
more severe economic conditions.

Moody's gave Everbright Bank of China a bank financial
strength rating of D, the Shanghai Pudong Development Bank
an E-plus rating and Shenzhen Development Bank an E rating.

Moody's said commercial banks are experiencing rising loan
delinquencies and these difficult conditions have also led
to intensified competition in the system.

Moody's said the regulatory environment that was once
highly supportive has shifted priority towards imposing
discipline and improving the quality of the system, a
transition that was accelerated by the lessons of the
financial crisis elsewhere in Asia. Everbright and Shanghai
getting Ba1 and Not Prime. Shenzhen got Ba3 and Not Prime.


SING TAO HOLDINGS: Culturecom talks suspended
---------------------------------------------
According to the SCMP and the Hong Kong Standard, Sing Tao
Holdings yesterday said talks over the sales of part of its
43 percent stake in Culturecom Holdings to its executive
director, Tang Lap-yan, had been suspended and that it had
begun talks with an independent third party.

Culturecom maintained it had no intention of holding talks
with former directors of flagship Chinese-language
newspaper, Tin Tin Daily News, over their offer to buy the
newspaper. Culturecom said that while its rights to publish
Tin Tin were not renewed on Sept. 3, it believed it will
continue to have the right to publish the newspaper and
that there will be no adverse effect on the company. The
publishing rights are held by a company that is in
liquidation and is unrelated to Culturecom.


SINOCAN HOLDINGS: Feels squeeze under $600m in debts
----------------------------------------------------
According to the SCMP, can maker Sinocan Holdings has
revealed it is experiencing cash-flow problems and must
restructure debts of $600 million.

The company said yesterday it had failed to make an
interest payment on a $320 million loan facility, of which
$270 million had been drawn down.

The company said it was considering fund-raising exercises.
It said it would talk with its creditors banks soon
regarding the restructuring of loans. Hongkong Bank,
American Express Bank, Banque Nationale de Paris and
Belgian Bank are among the company's principle banks,
according to last year's annual report.

The company has warned of a net loss in the six months to
June. Net profit stood at $117.3 million in the year to
December last year.

In the face of declining market conditions in the mainland,
particularly for three-piece tin cans, Sinocan would
experience increasing difficulty obtaining working capital.


W & H ENGINEERING LIMITED: Winding-up petition
----------------------------------------------
A petition for the winding up of W & H Engineering Limited  
was presented to the High Court on Sept 5 by UDL Kenworth
Engineering Limited whose registered address is situate at
10th Floor, Nanyang Plaza, 57 Hung To Road, Kwun Tong,
Kowloon, Hong Kong, and the said petition is directed to be
heard before the court at 9:30 am on Oct 14, and any
creditor or contributory of the said  company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Solicitors for the
Petitioner, Nor4man M.K. Yeung & Co. at Room 1005, 10th
Floor, Wheelock House, 20 Peddar Street, Central, Hong Kong
on payment of the regulated charges for the same.


WO KEE HONG: Results announcement
---------------------------------
Household electric appliance trader Wo Kee Hong (Holdings)
reported a $50.25 million net loss in the six months to
June 30 after a $10.19 million profit in the first half of
last year. The firm recorded a $7.79 million exceptional
loss arising from the disposal o foreign listed
investments. Operating loss was $48.81 million against a
$911,000 operating profit last year Turnover fell 42% to
$702.13 million. No interim dividend was proposed.  


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

GARUDA INDONESIA: Garuda chalks up first-ever profits
-----------------------------------------------------
According to the SCMP and the Hong Kong Standard, Garuda
has recorded its first profit, worth 200 billion rupiah
last month after years of losses. Minister of State
Enterprises Tanri Abeng said he expected the airline to
continue to make profit in the coming months. The earnings
of Indonesian airlines, including Garuda, have been eroded
by the headlong plunge of the rupiah, forcing them to take
drastic survival measures.


=========
J A P A N  
=========

ITOCHU: Sells 40% of its stake in Time Warner
---------------------------------------------
The Financial Times reports trading company Itochu has sold
40% of its stake in Time Warner for $420 million. The sale
of 2.36m of preferred shares on the open market after they
were converted to ordinary shares. The sale netted $199m
for Itochu. The sale was part of a management restructuring
plan aimed at reducing assets and investments and improving
profitability.

Its accumulated interest-bearing debt on a consolidated
level is Y5,300bn and its debt-to-equity ratio has
deteriorated to 13.5 times as a result of a net loss of
Y95bn in the year to March 1998, according to a recent
report by Warburg Dillon Reed.


LONG TERM CREDIT: Loan to former PM may have nixed deal
-------------------------------------------------------
According to the scmp, a senior official from Japan's
opposition Democratic Party alleged that attempts by the
ruling party to cover up a dubious loan to former prime
minister Noboru Takeshita lay at the heart of the breakdown
of an agreement on banking reform laws.

This centred around a one billion yen loan that LTCB gave
to Mr Takeshita, who is the leading power broker in the LDP
and Premier Obuchi's faction boss. It is alleged that Mr
Takeshita received the money with intermediary Yukio
Fukumoto, a back room power broker linked to gangsters as
well as to politicians, via Nippon Lease Rec, a dummy
subsidiary of LTCB affiliate Nippon Lease used to lend
money to gang front companies.

A spokesman for Mr Takeshita said the former premier was
acquainted with Mr Fukumoto but did not get any LTCB money
from him. A spokesman for LTCB said the rumors were
groundless.

Mr Obuchi said in New York yesterday that he did not want
LTCB to go through bankruptcy proceedings, and indicated he
wanted a new scheme to allow injections of public funds
into the bank. The ruling party's secretary general Yoshiro
Mori had earlier said LTCB would be temporarily
nationalised and not recapitalised with public money. Those
apparently contradictory remarks upset opposition parties,
prompting them to refuse further talks yesterday.

Questions also arose about a bonanza Mr Obuchi's brother
stands to make from one of Japan's largest public share
offers of US$14 billion.

Questions circulated yesterday about why the prime
minister's older brother, Kohei Obuchi, and his secretary,
Toshitaka Furukawa, were about to reap at least 750 million
yen from owning pre-listed shares in NTT DoCoMo. Relatives
of several other prominent politicians were also on a
list of owners of pre-listed shares who would usually stand
to make huge profits when a company is floated. The
Democratic Party official said his party believed the
shares were given as a deferred bribe to Kohei Obuchi in
1993 when he was a senior member of the ruling Liberal
Democratic Party's telecommunications lobby.

The Hong Kong Standard reports that the market remained
pessimistic about prospects of seeing a near-term
settlement in the LTCB issue, giving an account of the
contradictory remarks as mentioned above.


LONG TERM CREDIT: More details on UBS control of JV
---------------------------------------------------
According to reports in both the SCMP and Hong Kong
Standard, United Bank of Switzerland (UBS), has said it is
taking greater control of its joint ventures
with partner LTCB. UBS will buy out LTCB's half of a
Japanese asset management company the two established in
April, changing its name to UBS Brinson Asset Management.
UBS and unnamed third parties will boost their stake in
LTCB Warburg  Securities, an investment banking venture
established in June, to 66.67 per cent from 50 per cent.

UBS said that in view of LTCB's intended merger with
Sumitomo Trust, it was clear that certain businesses would
no longer be appropriate for the type of alliance they
had with LTCB as one of the attractions of LTCB was its
independence from Japan's big corporate groups, allowing it
to do business with a wider range of clients.

UBS and LTCB will retain the 1 percent share took in each
other in April. UBS inherited the alliance this year from
the merger of Union Bank of Switzerland and Swiss Bank
Corp, which tied up with LTCB last year. The two had
originally intended to take 3 per cent stakes in each
other.

UBS in June decided to shelve plans to form a private
banking joint venture, the same month LTCB's shares dipped
60 percent on concern the bank could not repay debts. UBS
started a Japanese private-banking business on its own
instead. The next month, the two companies dropped the name
LTCB from the joint ventures and switched to the UBS name.
LTCB was counting on its alliance with UBS to help it move
into new areas like securitisation as its traditional niche
of long term lending to corporations was usurped by other
banks and the bond market.


MITA INDUSTRIAL: In patent flap with Xerox
------------------------------------------
According to a report in the Kyodo News, Xerox Corp. on
Tuesday sued a U.S. subsidiary of Japanese copier and
printer maker Mita Industrial Co., accusing it of  
infringing four Xerox patents.

In a lawsuit filed in the U.S. District Court in Rochester,
New York, Xerox alleges that its patented technology is
contained in a number of products made by Mita Copystar
America Inc.

Xerox is seeking a court injunction prohibiting Mita
Copystar from continuing to sell those products, plus
unspecified damages. The patents include a copier control
console, a filtration system designed to collect ozone
emissions and a  machine shutdown control, Xerox said in a
statement.

It is the second time this year that Xerox has sued a
competitor for alleged patent infringement. In May, Xerox
claimed Hewlett-Packard Co. infringed on patents in its
thermal ink-jet printers and related supplies. That lawsuit
is still pending.

With liabilities of 205.6 billion yen, Mita filed for court
protection from its creditors on Aug. 10 under Japan's
bankruptcy law.


NEC CORPORATION: To post 20 bln yen in first-half red ink
---------------------------------------------------------
The Nihon Keizai reports NEC Corp. expects to post 20
billion yen in consolidated net loss in the fiscal first
half ending September, compared to 35.8 billion yen in net
profit a year earlier, company officials said Friday.
The computer maker attributed the first midterm loss in
five years to falling semiconductor prices and poor sales
of communications equipment.

Over the next three years, NEC plans to cut 6,000 workers
from its domestic group payroll, which currently stands at
130,000, through reduced hiring and natural attrition, and
to beef up staffing in new and important areas such as
systems integration.


OKI ELECTRIC: Expects to lose 43 bln yen in FY98
------------------------------------------------
The Nihon Keizai reports Oki Electric Industry Co.
announced Tuesday it expects to post a net loss of 43
billion yen in the current year through March 1999,
compared with only 8.1 billion yen in red ink in fiscal
1997. Falling prices of semiconductors and poor sales of
telecommunications equipment are behind the loss.

Fiscal 1998 group sales are seen slipping some 4% to 735
billion yen. In addition to falling memory chip prices,
capital spending curbs by Nippon Telegraph and Telephone
Corp. as well as by financial institutions are hurting
sales.

In response to the weak earnings, Oki will slash some 2,700
jobs (about 10% of total) from its group payroll by the end
of March, 2000.


TAIHEIYO SECURITIES: Sumitomo Life to buy 10% stake
---------------------------------------------------
The Financial Times reports Sumitomo Life Insurance will
take a 10% stake in Taiheiyo Securities, the Japanese
brokerage affiliatd to the collapsed Yamaichi group, in a
bid to improve Taiheiyo's creditworthiness and strengthen
its business. Sumitomo Life also said it will increase its
stake in Taiheiyo Investment Trust Management, part of the
Taiheiyo group, from less than 1 percent to 10 percent.


TOSHIBA CORPORATION: Moody's downgrades debt ratings
----------------------------------------------------
Moody's Investors Service Inc. said it has downgraded
Toshiba Corp's long-term debt ratings to single-A-2 from
single-A-1, and lowered its domestic shelf registration
rating to (P)A2 from (P)A1.

The decision also affects subsidiaries that Toshiba
supports financially: Toshiba America Capital Corporation,
Toshiba International Finance (Netherlands) BV. The
downgrade reflects Moody's expectation that the continuing
severe business climate and unfavorable structural changes
in its operations will continue to squeeze the company's
earnings and cash flow. Moody's also said the downgrade
will weaken debt-protection measurements over the
intermediate period despite the company's efforts to
improve its operation efficiency and its promotion of
various strategic alliances.

The downgrade affects about $3.8 billion of the company's
long-term debt, $1.6 billion of its medium-term note
program, and 300 million yen of Japanese shelf registration
for bonds.


YAMAHA CORPORATION: To restructure semiconductor business
---------------------------------------------------------
The Nihon Keizai reports Yamaha Corp. plans to restructure
its semiconductor business by integrating its production
mainly at a plant in Hamamatsu, Shizuoka Prefecture,
company officials said Tuesday. The move is being taken
since semiconductors sales have dropped to the half the
record fiscal 1995 level, the officials added.

The company will reduce monthly production to the
equivalent of 9,000 8-inch wafers from 12,000 by March
1999.

It also aims to reduce annual fixed costs by about 5
billion yen by canceling employment contracts for about 140
workers supplied by temporary personnel agencies.

Under the restructuring plan, the company will largely
centralize chip production at the Hamamatsu plant, and cut
monthly output at the Kagoshima facility in half to the
equivalent of 3,000 8-inch wafers.


YOKOGAWA ELECTRIC: Predicts 25% profit drop for FY98
----------------------------------------------------
The Nihon Keizai reports Yokogawa Electric Corp. expects to
post pretax profit of 5 billion yen in the current year
through March 1999, down about 25% from a year earlier,
company sources said. A sharp drop in sales volume of the
company's mainline plant control equipment due to cuts in
private-sector capital investment is behind the gloomy
forecast. Consolidated net profit is likely to plunge 87%
from last year's 7.56 billion yen to below 1 billion yen.


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

JINRO LTD.: Jinro negotiation for capital injection
---------------------------------------------------
The Korea Herald reports that Jinro Ltd., Korea's leading
distiller is seeking $200 million in foreign capital from
Morgan Stanley of the United States. The report mentioned
that the inducement of foreign capital could include the
issuance of convertible bonds and the sales of common
shares.

Jinro obtained court protection from its creditors in March
of 1998. It is also reported that Jinro originally
approached Morgan Stanley for $300 million.


KEOPYUNG DISTRIBUTION: Granted court receivership
-------------------------------------------------
According to the Korean language Maeil Kyungje article
concerning the Keopyung Industry Development Co., the
Keopyung Distribution Co.'s application for court
receivership was approved by the Seoul District
Court.


KEOPYUNG FASHION: Granted court receivership
--------------------------------------------
According to the Korean language Maeil Kyungje article
concerning the Keopyung Industry Development Co., the
Keopyung Fashion Co.'s application for court receivership
was approved by the Seoul District Court.


KEOPYUNG INDUSTRY: Court rejects receivership application
---------------------------------------------------------
According to the Korean language Maeil Kyungje, the Seoul
Distric Court has rejected the Keopyung Industry
Development Company's application for court receivership.  

The Court has deliberated on this application for over a
month since Keopyung Industry Development Company is the
owner of the Kyeopyung Preya Department Store. With this
court rejection, the department store's building now has to
be auctioned off.

However, as the small shops with leases in this building
(who will probably not get a refund of their lease
payments) are expected to interfere with the auction, the
Court has been concerned that the sale will be extremely
difficult.  


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

DIAMOND IMPACT (M) SDN BHD: Winding-up petition
-----------------------------------------------
U.H. Trading (KL) Sdn Bhd on 17/8/98 petitioned for the
winding-up of Diamond Impact (M) Sdn Bhd. The petition is
directed to be heard on 13/11/98.


HICOM HOLDINGS: Talks with bondholders
--------------------------------------
Hicom Holdings Bhd (listed on the KLSE) is in talks with
holders of its RM915mil redeemable secured bonds to resolve
the shortfall between the values of shares pledged as
security and that required by the trust deed of the bonds.

The trust deed required the aggregate value of shares
pledged to be at 1.66 times the value of the bonds.

The trust deed stated that a shortfall may constitute a
default if not rectified, but bondholders had not proceeded
to declare a default.

A cut in ratings of its RM500mil Islamic underwritten notes
issuance facility had left the facility below the
prescribed rating level, which may lead to a cancellation
and all notes be immediately be due and payable, if the
underwriters choose to do so.

Hicom has obtained "an indulgence" from the underwriters
who have agreed to waive their rights to call for a
cancellation of the facility until Nov. 12.


HUME INDUSTRIES (MALAYSIA) BHD: Results announcement
----------------------------------------------------
Hume Industries (Malaysia) Bhd, listed on the KLSE and a
member of the Hong Leong Group, has registered a group pre-
tax loss of RM60.6mil for the year ended 30/6/98, compared
to a pre-tax profit of RM432.2mil previously.

The loss was attributable to realised and unrealised
foreign exchange losses and loss from joint ventures.


KEJURUTERAAN ELEKTRIK A-Z SDN BHD: Winding-up petition
------------------------------------------------------
Electronics Tags Sdn Bhd on 28/8/98 petitioned for the
winding-up of Kejuruteraan Elektrik A-Z Sdn Bhd.


NYNEX NETWORK SYSTEMS (MALAYSIA): Voluntary winding-up
------------------------------------------------------
The members of Nynex Network System (Malaysia) Sdn Bhd on
19/9/98 resolved to wind-up the company voluntarily.
Creditors of the company are requested to submit their
claims before 28/10/98.


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

PHILIPPINE AIRLINES: PAL creditors moving to recover assets
-----------------------------------------------------------
The Asian Wall Street Journal reported a statement from the
executive vice president of Philippine Airlines (PAL),
Manolo Aquino, that creditors are moving to recover assets.  
The report claimed that the U.S. Export-Import Bank, which
guaranteed the financing for jets purchased from Boeing
Co., has asked PAL for the voluntary surrender of four
Boeing 747-400 aircraft.  

On Monday, Sept 21, the Philippine Securities and Exchange
Commission granted PAL a 60-day extension on a moratorium
for its debt servicing. PAL's creditors had agreed to the
moratorium when it was first requested in June.


PHILIPPINE AIRLINES: Union vote seals PAL fate
----------------------------------------------
According to the SCMP, Philippine Airline (PAL) unions have
voted to put the airline into bankruptcy, but the
government stepped in to keep the crucial domestic routes
operating with a 1.5 billion peso bridge loan from state
financial institutions which are investors in PAL.

State-run banks and pension funds together control about 20
per cent of the airline while businessman Mr Lucio Tan
holds 70 percent. PAL handles about 80 percent of all
domestic routes.

Mr Estrada's spokesman, Mr Fernando Barican, said Manila
was also studying other options to keep the airline flying
even if PAL management went ahead with the closure threat.
Among the options is to declare PAL in receivership and
then have a receivership committee appointed by the
Securities and Exchange Commission, run the airline. The
carrier could also be leased to a government corporation.

Mr Estrada is talking to possible investors in the domestic
routes. A source said any closure would hit the country's
trade balance and balance of payments. PAL is the country's
seventh largest company in terms of revenues.


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

IPCO INTERNATIONAL: JV faces US$73 million in claims
----------------------------------------------------
Singapore BusinessTimes reports Ipco International Ltd,
whose parent Promet is in dire straits, said a joint
venture of the group is facing US$73 million (S$126.5
million) in claims, while its auditor noted that almost $18
million included in the group's accounts is under
arbitration.

The infrastructure company said in its latest annual report
that a client has made counter claims totalling US$73
million against an "unincorporated" joint venture 50 per
cent owned by the group. The claims, which relate to delays
on a completed construction contract, have been referred to
arbitration.

As the directors feel they are unsubstantiated, no
provision has been made in the accounts.

For the year ended April 30, Ipco posted a staggering $38
million net loss and $52 million bottomline loss. But
despite the group's heavy losses at the pre-tax, after-tax
and bottomline levels, newly-appointed chairman Gwee Yow
Pin said financial year 1999 "earnings" are expected to
remain flat. For the period under review, Mr Gwee said "the
regional and currency turmoil has led to deferment and
cancellation of infrastructure projects in the Asian
countries".

Ipco, which raised US$38 million in a rights issue late
last year, used the funds to repay bank loans and fund new
projects and working capital.

Meanwhile, Ipco's parent, Promet Bhd, which is under court
protection, said on Monday that three of its units have
defaulted on payments totalling over 80 million ringgit
(S$36.5 million) to Export-Import Bank of Malaysia and
Omega Securities Sdn Bhd.


LI XIN INDUSTRIES: Results announcement
---------------------------------------
Singapore BusinessTimes reports Li Xin Industries yesterday
said its net profit plunged 76.2 per cent to $786,000 for
the half year to June 30, due to sliding prices and a
slowdown in the electronics industry. Turnover fell 16.7
per cent to $39.2 million. Earnings per share came to 0.31
of a cent, down from 1.5 cents. No dividend was declared.


ROTOL SINGAPORE: Results announcement
-------------------------------------
Singapore BusinessTimes reports Rotol Singapore's net
profit for the first half of 1998 has fallen 19 per cent to
$1.4 million as tougher market conditions and stiff
competition in local and overseas markets eroded its
margins. Revenue fell 11 per cent to $11.2 million. The
company said results for 1998 are expected to be less
favourable than in 1997 because of the regional economic
downturn and financial turmoil.


SECOND CHANCE ENTERPRISES: Results announcement
-----------------------------------------------
Singapore BusinessTimes reports Second Chance Enterprises
yesterday posted a net loss of $790,000 for the year ended
June 30. In 1997, the group posted a net profit of $3.7
million. Turnover eased 1.58 per cent to $42.4 million
during the year. Loss per share was 0.01 of a cent,
compared with earnings per share of 0.03 cent last year.
Net tangible asset backing per share was 0.15 cent, down
from 0.16 cent. A final dividend of 6 per cent less tax was
declared. The group said its gold business in Malaysia was
closed in February due to the worsening retail environment,
and its Malaysian apparel business was closed in July.
Directors see a "difficult" year ahead.


TWINWOOD ENGINEERING: Results announcement
------------------------------------------
Singapore BusinessTimes reports Twinwood Engineering has
suffered a 95 per cent drop in net profit to $173,000 for
the first half of 1998. Pre-tax profit fell 93 per cent to
$262,000 while revenue declined 54 per cent to $5.8
million. The building equipment supplier said sales in
Indonesia, Thailand, Malaysia and Singapore have dropped
due to the regional economic turmoil and this will have a
negative impact on its profitability this year. But it
added that it had penetrated the Hongkong market and had
made its first sale in North America. It said research and
development efforts remain on track and a rental fleet has
been set up to cater to customers who face equipment
financing difficulties.


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

EAC MARKETING SERVICE: Transferred by parent to affiliate
---------------------------------------------------------
The Nation reports East Asiatic Company Plc (EAC) will
transfer 82 per cent shares of its subsidiary, EAC
Marketing Service (Thailand) Co, to its affiliate company
Thai-Dan Enterprise Co as the firm restructures to focus on
the chemical business.

According to Henrik Melchior, EAC's secretary, all
businesses not directly related to chemicals, will be
transferred to the affiliate.

In its filing with the Stock Exchange of Thailand, EAC's
board of directors agreed to sell out 1.35 million shares
or 82 per cent of EAC Marketing Service to Thai-Dan
Enterprise for Bt716,000 or Bt0.53 per share.

Melchior said the move is not a financial restructure, but
business reorganisation in which subsidiaries which are not
related to chemical business will be transferred to Thai-
Dan Enterprise.

After the shares are transferred, Thai-Dan Enterprise will
own 100 per cent in EAC Marketing Service.

According to the report, as of 1997, EAC Marketing Service
had shown a Bt86-million net loss exceeding its registered
capital. EAC Marketing Service also borrowed money from its
parent company, prior to its share transfer. EAC will
convert the Bt65-million worth of shareholders' debt to its
subsidiary company's equities.


EKACHART FINANCE: To sell shares to BNP Prime Peregrine
-------------------------------------------------------
Ekachart Finance and Securities Public Company has informed
the SET that it intends to sell common shares held in
Ekachart Securities Company Limited of 29,999,993 shares to
BNP Prime Peregrine Holdings (L) Limited and Banque
Nationale De Paris for the approximate amount Bht. 650
million.

The company also intends to make some modifications to its
original merging plan with National Finance Public Company
Limited. With this regard, the Company is in a process of
making such modifications by sorting out the most
beneficial alternative.

Additionally, the Board of Directors considering issuing
debentures and/or subordinate debentures amounting to Baht
1,000 million to individual and/or corporates or 17 types
of investment institutions.  The issuance is for one or
several times.


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,
DC USA.  Debra Brennan and Lexy Mueller, Editors.

Copyright 1998.  All rights reserved.  ISSN: 1520-9482.  

This material is copyrighted and any commercial use,
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