---

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      

      Monday, September 28, 1998, Vol. 1, No. 152

                    Headlines


* C H I N A   &   H O N G   K O N G *

AEL NICOSONIC MANUFACTURING: Winding-up order
ADDLINK LIMITED: Winding-up order
ASIABEST BUILDING MATERIALS: Winding-up petition
BEIJING COPPER PLANT: Likely to go bankrupt
BEST PART SUPPLIES LIMITED: Winding-up order

CARRIAN FINANCE LIMITED: Members' and creditors' meeting
CARRIAN REALTY LIMITED: Members' and creditors' meeting
CHEERON INTERNATIONAL INVESTMENT: Winding-up order
CHINA INVESTMENTS HOLDINGS: Results announcement
CHUN YICK COMPANY LIMITED: Winding-up order

GAIN WAY ENTERPRISES LIMITED: Winding-up petition
HIGH SPEED PHOTO FINISHING CO LIMITED: Winding-up petition
HILLGROVE LIMITED: In creditors' voluntary liquidation
HON KWOK LAND INVESTMENT: Make make further provisions
KIN HWA FUNG ENTERPRISES: Winding-up order

KUNG LI TRANSPORTATION LIMITED: Winding-up order
MILFUL DEVELOPMENT LIMITED: Winding-up order
MUSICAL CONCEPTS LIMITED: Winding-up order
P & C DESIGN LIMITED: Winding-up order
PEREGRINE GROUP: Peregrine receiver costs now at $22.5m

RHINE HOLDINGS: Notice of first meetings
SHORT YIELD LIMITED: In creditors' voluntary liquidation
STIME WATCH INTERNATIONAL: Results announcement
WONDERLAND INVESTMENT: In creditors' voluntary liquidation
YEE HING CHEUNG FACTORY LIMITED: Winding-up order


* I N D O N E S I A *

ASTRA INTERNATIONAL: To double stake in Indonesian JV


* J A P A N *

ALL NIPPON AIRWAYS: Withdraws from US hotel business
LONG TERM CREDIT: Bank talks may be close to new deal


* K O R E A *

HANKUK FIDELITY AND SURETY: Seoul to inject $789 mil. funds
KIA MOTORS: Creditors want to try for third auction
KOREA GUARANTEE INSURANCE: Seoul to inject $789 mil. funds


* M A L A Y S I A *

AMALGAMATED SUA HOLDINGS SDN BHD: Voluntary winding-up
CONSOLIDATED FOREST PRODUCTS SDN BHD: Notice of claim
PSC INDUSTRIES: Boustead Holdings doubles stake
TIMORA ENGINEERING SDN BHD: Voluntary winding-up
WACO ENGINEERING SDN  BHD: Voluntary winding-up


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

PHILIPPINE AIRLINES: Foreign carriers express interest


* S I N G A P O R E *

BBR HOLDINGS: Results announcement
NEW TOYO INTERNATIONAL: Results announcement
PROGEN HOLDINGS: Results announcement


* T H A I L A N D *

BOOK CLUB: Takes writedown before increasing capital
CPH (US) CORPORATION: To end operations
CS COMMUNICATIONS: Sells holding in satellite phone system
KRUNGTHAI BANK: BOT to infuse Bt185 bn
THAI AUTOMOTIVE: Thai Chrysler must pay back loans

THAI GARMENT FACTORY: To end operations

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

AEL NICOSONIC MANUFACTURING: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that AEL
Nicosonic Manufacturing Limited is undergoing a companies
winding-up proceedings (No 533 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on September 16, 1998.  
The date of presentation of petition was August 6, 1998.    


ADDLINK LIMITED: Winding-up order
---------------------------------
A winding-up order notice is hereby given that Addlink
Limited is undergoing a comapnies winding-up proceedings
(No 534 of 1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is on September 16, 1998. The date of presentation of
petition was August 6, 1998.    


ASIABEST BUILDING MATERIALS: Winding-up petition
------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Asiabest Building Materials Supplies Limited by the High
Court of Hong Kong was, on the 3rd day of September, 1998,
presented to the said Court by Worldful Development Limited
and the petition is heard on 7th of October, 1998. Other
creditors who support or oppose the making of the order may
appear at the time of the hearing.  


BEIJING COPPER PLANT: Likely to go bankrupt
-------------------------------------------
According to the SCMP, Beijing Copper Plant, one of the
mainland's largest copper mills, is likely to go bankrupt
as a worldwide slump in copper prices has piled up losses
at the company.

The 42-year old company, which has an annual capacity of
33,000 tonnes of semi-finished copper, 103,000 tonnes of
wire rod and 15,000 tonnes of copper cathode, stopped
production in November last year. Copper prices have
slumped 40 per cent since June last year.

"China Metals" reported that Beijing State Bureau of Non-
Ferrous Metals Industry has yet to decide what to do with
the company's 1,100 workers and assets.


BEST PART SUPPLIES LIMITED: Winding-up order
--------------------------------------------
A winding-up order notice is hereby given that Best Part
Supplies Limited is undergoing a companies winding-up
proceedings (No 544 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 16, 1998. The date of
presentation of petition was August 11, 1998.    


CARRIAN FINANCE LIMITED: Members' and creditors' meeting
--------------------------------------------------------
A meeting of members and creditors of Carrian Finance
Limited will be held at 17th Floor, Hutchison House, 10
Harcourt Road, Central, Hong Kong on Oct 16 at 9:00 am for
the purpose of receiving an account of the liquidators'
acts and dealings and of the conduct of the winding up of
the company during the preceding year. The liquidator is
Thomas Brian Stevenson, 15th Floor, Hutchison House, 10
Harcourt Road, Central, Hong Kong.


CARRIAN REALTY LIMITED: Members' and creditors' meeting
-------------------------------------------------------
A meeting of members and creditors of Carrian Realty
Limited will be held at 17th Floor, Hutchison House, 10
Harcourt Road, Central, Hong Kong on Oct 16 at 10:00 am for
the purpose of receiving an account of the liquidators'
acts and dealings and of the conduct of the winding up of
the company during the preceding year. The liquidator is
Thomas Brian Stevenson, 15th Floor, Hutchison House, 10
Harcourt Road, Central, Hong Kong.


CHEERON INTERNATIONAL INVESTMENT: Winding-up order
--------------------------------------------------
A winding-up order notice is hereby given that Cheeron
International Investment Limited is undergoing a companies
winding-up proceedings (No 30 of 1983) in the High Court of
the Hong Kong Special Administrative Region court of first
instance. The date of order is on September 16, 1998. The
date of presentation of petition was August 14, 1998.    


CHINA INVESTMENTS HOLDINGS: Results announcement
------------------------------------------------
Attributable losses at China Investments Holdings rose in
the first half to $18 million, from $2.9 million in the
same period a year earlier. No interim dividend was
declared.


CHUN YICK COMPANY LIMITED: Winding-up order
-------------------------------------------
A winding-up order notice is hereby given that Chun Yick
Company Limited is undergoing a companies winding-up
proceedings in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is on September 16, 1998. The date of presentation of
petition was July 14, 1998.    


GAIN WAY ENTERPRISES LIMITED: Winding-up petition
-------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Gain Way Enterprises Limited by the High Court of Hong
Kong was, on the 9th day of September, 1998, presented to
the said Court by Chong Chun-tat 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.  


HIGH SPEED PHOTO FINISHING CO LIMITED: Winding-up petition
----------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of High Speed Photo Finishing Co Limited by the High Court
of Hong Kong was, on the 31th day of August, 1998,
presented to the said Court by Kodak (Far East) Limited and
the petition is heard on 7th of October, 1998. Other
creditors who support or oppose the making of the order may
appear at the time of the hearing.  


HILLGROVE LIMITED: In creditors' voluntary liquidation
------------------------------------------------------
Notice is hereby given that the creditors of Hillgrove
Limited (in creditors' voluntary liquidation) are required
on or before 26th October, 1998 to send in their names and
address, full particulars of their debts and claims, and
the name and addresses of their solicitors, to the
liquidators of the said company at 23rd Floor, Chekiang
First Bank Building, 58-63 Gloucester Raod, Wanchai, Hong
Kong.


HON KWOK LAND INVESTMENT: Make make further provisions
------------------------------------------------------
Hon Kwok Land Investment, a Hong Kong medium-sized
developer, has warned it may make further provisions in the
wake of the $135 million in write-downs made in the
financial year to March.

After its annual meeting yesterday, managing director
Herman Fung said if property prices continued to see a
dramatic decline, the company might be forced to make
further write-downs. Mr Fung said the company would not
make provisions for the reduction in value of Sun Hung Kai
Properties (SHKP) shares in the first six months to
September despite a continued fall in the share price.

Last year the developer recorded a 76% fall in net profit
to $128.08 million after making provisions of $104.21
million for property projects and $30.91 million for its
1.59 million shares in SHKP. Despite the dramatic decline
in property values, Mr Fung said the company remained
financially sound.


KIN HWA FUNG ENTERPRISES: Winding-up order
------------------------------------------
A winding-up order notice is hereby given that Kin Hwa Fung
Enterprises Limited is undergoing a companies winding-up
proceedings (No 548 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 16, 1998. The date of
presentation of petition was August 11, 1998.    


KUNG LI TRANSPORTATION LIMITED: Winding-up order
------------------------------------------------
A winding-up order notice is hereby given that Kung Li
Transportation Limited is undergoing a companies winding-up
proceedings in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is on September 16, 1998. The date of presentation of
petition was August 5, 1998.    


MILFUL DEVELOPMENT LIMITED: Winding-up order
--------------------------------------------
A winding-up order notice is hereby given that Milful
Development Limited is undergoing a companies winding-up
proceedings (No 472 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 16, 1998. The date of
presentation of petition was July 14, 1998.    


MUSICAL CONCEPTS LIMITED: Winding-up order
------------------------------------------
A winding-up order notice is hereby given that Muscial
Concepts Limited is undergoing a companies winding-up
proceedings (No 530 of 1988) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 16, 1998. The date of
presentation of petition was August 5, 1998.    


P & C DESIGN LIMITED: Winding-up order
--------------------------------------
A winding-up order notice is hereby given that P&C Design
Limited is undergoing a companies winding-up proceedings
(No 545 of 1988) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is on September 16, 1998.  The date of presentation
of petition was August 11, 1998.    


PEREGRINE GROUP: Peregrine receiver costs now at $22.5m
-------------------------------------------------------
According to the SCMP, fees for the Official Receiver's
role in the Peregrine Group liquidation have so far climbed
to $22.5 million, six months into the insolvency process,
based on the $2.17 billion realised as of July 17.

No official figure has been revealed in court for costs
that must be paid to liquidators, but liquidation experts
calculated the figure based on a sliding scale applicable
in this case. Mrs Justice Doreen Le Pichon said this week
fees had already been incurred under the Companies Order.

A fee equal to 0.1 per cent of the gross value will be
taken on further realisations. The liquidators Price
Waterhouse estimated further realisations to be between
$1.45 billion and $5.6 billion.

The judge lashed out at liquidators in June after they
charged fees of about $76 million for 63 days work. The
fees related to the liquidation and winding-up of Peregrine
Investment Holdings, Peregrine Derivatives and Peregrine
Fixed Income. After write-offs and reductions, fees charged
by Price Waterhouse were $37.8 million.

Its legal advisers, Deacons, had fees of $21.5 million and
Clifford Chance incurred charges of $16.9 million.

The thorny issue of the costs of liquidation is due to move
back into court. A hearing scheduled for this week has been
postponed.


RHINE HOLDINGS: Notice of first meetings
----------------------------------------
In the High Court of Hong Kong Special Administration
Region Court of First Instance, companies winding-up
proceeding (No.510 of 1998), a notice of first meetings is
hereby given that creditors and contributors of Rhine
Holdings Limited will meet on October 12, 1998 at the
Official Receiver's Office at 10/F, Queensway Government
Offices,66 Queensway, Hong Kong.


SHORT YIELD LIMITED: In creditors' voluntary liquidation
--------------------------------------------------------
The creditors of Short Yield Limited, which is being
voluntarily wound up, are required on or before Oct 26 to
send in their names, addresses and particulars of their
debts or claims to the Liquidators of the said company, 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. The liquidator is Roy Kinnear, 44th Floor, Jardine
House, 1 Connaught Place, Central, Hong Kong.


STIME WATCH INTERNATIONAL: Results announcement
-----------------------------------------------
Watch-maker Stime Watch International Holdings plunged into
a $34.68 million attributable loss during the six months to
June 30, as customers' confidence in the firm's products
was eroded amid a sharp fall in material prices. The loss
compares with $23.11 million profit during the same period
last year.


WONDERLAND INVESTMENT: In creditors' voluntary liquidation
----------------------------------------------------------
The creditors of Wonderland Investment Limited, which is
being voluntarily wound up, are required on or before Oct
26 to send in their names, addresses and particulars of
their debts or claims to the Liquidators of the said
company, 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. The liquidator is Roy Kinnear, 44th
Floor, Jardine House, 1 Connaught Place, Central, Hong
Kong.


YEE HING CHEUNG FACTORY LIMITED: Winding-up order
-------------------------------------------------
A winding-up order notice is hereby given that Yee Hing
Cheung Factory Limited is undergoing a companies winding-up
proceedings (No 555 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 16, 1998. The date of
presentation of petition was August 13, 1998.    


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

ASTRA INTERNATIONAL: To double stake in Indonesian JV
-----------------------------------------------------
The Nihon Keizai reports Japan's Daihatsu Motor Co. said
Thursday it has reached a basic agreement with PT Astra
International of Indonesia to raise its stake in their
joint venture - PT Astra Daihatsu Motor - to 40% from 20%.

In addition, Japan's Nichimen Corp.'s stake in the
Indonesian joint venture will rise to 10% from 5%. Astra
International's stake in the joint venture will drop to 50%
from 75%. The changes will take effect in December.

Daihatsu said it and Nichimen are boosting their stakes in
Astra Daihatsu Motor to strengthen competitiveness of the
joint venture in the areas of cost and quality. It is also
seen helping Astra International amid the severe downturn
in the Indonesian economy.

With the economic slump, Astra Daihatsu Motor's output
shrank to about 300 vehicles a month in August from a
monthly average of about 3,000 last year. Astra
International is Indonesia's leading automaker. Toyota
Motor Corp. recently announced it was taking a majority
stake in Daihatsu Motor amid intensifying competition in
the global auto industry.


=========
J A P A N  
=========

ALL NIPPON AIRWAYS: Withdraws from US hotel business
----------------------------------------------------
Agence France-Presse reports Japan's troubled All Nippon
Airways Ltd said yesterday it will sell its two hotels in
the United States, in Washington and San Francisco, to
streamline its overseas hotel business.

ANA, the nation's second largest airline, has already
signed a sales contract with Rowe Enterprises, a property
group based in Los Angeles, for about US$270 million, a
company spokesman said.

The sales would take effect on Sept 29 and the company
expected to make a YEN 5 billion ($37 million) capital gain
on the deal, the spokesman said.


LONG TERM CREDIT: Bank talks may be close to new deal
-----------------------------------------------------
Reuters reports Japan's ruling party and key opposition  
groups said Friday they were close to a deal to help
restructure the nation's troubled banking sector, just one
week after a previous deal fell apart in recriminations.

Just a week ago, the LDP and two opposition groups appeared
to reach a deal that would nationalize the troubled Long-
Term Credit Bank of Japan Ltd. (LTCB), strip the Finance
Ministry of its financial policy-making powers and abolish
a 13 trillion yen ($97.0 billion) fund set up to
recapitalize banks, while studying a replacement scheme.

But the agreement had unraveled as it became clear that the
LDP still wanted to inject taxpayers' money into LTCB and
go ahead with a planned merger with Sumitomo Trust &
Banking Co. Ltd.

Japan's top government spokesman said earlier Friday that
the planned merger could be canceled.

"The possibility of merger talks between the two banks
falling apart cannot be totally ruled out," Nonaka was
quoted as saying.


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

HANKUK FIDELITY AND SURETY: Seoul to inject $789 mil. funds
-----------------------------------------------------------
Futures World reports the South Korean Government will
inject 1.1 trillion won (US$789 million) in public funds
into Korea Guarantee Insurance Co. and Hankuk Fidelity and
Surety Co. to facilitate their merger on Nov. 25.

The Financial Supervisory Commission said that it would
have Korea Asset Management Corp. offer 600 billion won
(US$430 million) next month and 500 billion won (US$358
million) in April next year to purchase 3.5 trillion won  
(US$2.5 billion) worth of deferred bonds of the two
insolvent guarantee insurers.


KIA MOTORS: Creditors want to try for third auction
---------------------------------------------------
According to the SCMP, creditors are scrambling to find new
solutions for Kia Motors as their second attempt to auction
off the debt-laden car maker flopped.

Options open include selling Kia to a favoured firm through
negotiations, holding a third auction after turning Kia's
debts into stakes and letting a "paper company" assume part
of the burdens to make it more attractive.

But Kia officials said creditors looked negative to letting
Hyundai Motor and Daewoo Motor absorb both Kia and a third
bidder, Samsung Motors, through "big deal" business swaps.

A Korea Development Bank official said discussions will be
held with Kia and creditors on ways of disposing of the
companies.


KOREA GUARANTEE INSURANCE: Seoul to inject $789 mil. funds
----------------------------------------------------------
Futures World reports the South Korean Government will
inject 1.1 trillion won (US$789 million) in public funds
into Korea Guarantee Insurance Co. and Hankuk Fidelity and
Surety Co. to facilitate their merger on Nov. 25.

The Financial Supervisory Commission said that it would
have Korea Asset Management Corp. offer 600 billion won
(US$430 million) next month and 500 billion won (US$358
million) in April next year to purchase 3.5 trillion won  
(US$2.5 billion) worth of deferred bonds of the two
insolvent guarantee insurers.


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

AMALGAMATED SUA HOLDINGS SDN BHD: Voluntary winding-up
------------------------------------------------------
The members of Amalgamated Sua Holdings Sdn Bhd on 19/9/98
resolved to wind-up the company voluntarily.


CONSOLIDATED FOREST PRODUCTS SDN BHD: Notice of claim
-----------------------------------------------------
Evergreen Paper (M) Sdn Bhd on 13/6/98 filed a claim
against Consolidated Forest Products Sdn Bhd for the amount
of RM64,111, being due to Evergreen Paper (M) Sdn Bhd.


PSC INDUSTRIES: Boustead Holdings doubles stake
-----------------------------------------------
BOUSTEAD Holdings Bhd has doubled its stake from 20.01
per cent to 40.01 per cent in troubled investment holding
company PSC Industries for RM237.39 million (S$107.3
million).

PSC Industries Bhd, controlled by businessman Amin Shah,
earlier reported its current cashflow could not cover
short-term debts, roughly totalling RM248 million, and that
it was working on a plan to restructure its debts. In an
earlier circular, it said it "has the financial resources
to maintain the current level of operations until its
short-term borrowings became payable within the (current)
financial year".

The company said it was working out arrangements to reduce
its short-term borrowings, which included raising long-term
funds and restructuring part of its short-term debt to
long-term. It also said it was in the final stage of
negotiations with parties to secure new projects.

According to the financials in that circular, PSC
Industries Bhd has to pay a total of RM248.3 million and
roughly RM30 million in interest, assuming a 12 per cent
interest rate.


TIMORA ENGINEERING SDN BHD: Voluntary winding-up
------------------------------------------------
The members of Timora Engineering Sdn Bhd on 18/9/98
resolved to wind-up the company voluntarily. Creditors of
the company are requested to submit their claims before
19/10/98.


WACO ENGINEERING SDN  BHD: Voluntary winding-up
-----------------------------------------------
The members of Waco Engineering Sdn Bhd on 18/9/98 resolved
to wind-up the company voluntarily. Creditors of the
company are requested to submit their claims before
30/10/98.


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

PHILIPPINE AIRLINES: Foreign carriers express interest
------------------------------------------------------
Agence France-Presse reports foreign carriers led by
Lufthansa, Northwest Airlines and Eva Air are lining up to
buy the businesses of defunct Philippine Airlines (PAL),
senior officials said Thursday.

Senior vice president Avelino Zapanta said talks would
start with these airlines as soon as PAL completes its
liquidation process. It ended 57 years of flight operations
Wednesday.

"They don't want to conduct official talks for as long as
PAL has not really wound up as a company," he told
reporters, adding they were evading PAL's strike-prone
leftist-affiliated unions.

Zapanta Eva Air of Taiwan, Lufthansa of Germany, Northwest
Airlines of the United States, Singapore Airlines, Hong
Kong's Swire Pacific Ltd. which owns Cathay Pacific, and
Swiss Air had expressed interest.

Eva Air, Northwest and Swire are interested to acquire the
entire airline, Zapanta said.

Singapore Airlines Terminal Services, a subsidiary of the
flag carrier, would like to take over catering and ground
handling services. Lufthansa is also interested in the
entire airline but mainly its maintenance and engineering
section, he added.

Zapanta could not give a timetable when PAL would finally
wind up its closure because they will have to deal with
companies with which they have contacts.

Zapanta also said PAL had enough assets to pay its debts.

"We have 91 billion pesos (two billion dollars) worth of
assets and 90 billion pesos worth of liabilities," he said.

He said it was up to the corporate watchdog Securities and
Exchange Commission to begin liquidation procedures.

"Right now, we are still on receivership. There is an
interim receivership committee and I think that the next
logical action is to convert that into a liquidation
committee," he said.

Any other airlines which would want to lease its aircraft
would have to talk with PAL's lessors, he said.


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

BBR HOLDINGS: Results announcement
----------------------------------
Singapore BusinessTimes reports specialist engineering
group BBR Holdings' interim net earnings halved to $2.1
million because of lower turnover and a margin squeeze in
its geotechnical activities.

Turnover fell 7.9 per cent to $64.7 million for the six
months ended June 30, from $70.3 million in the previous
year.

In a statement accompanying the results, the group
attributed the fall in turnover to the decline in
contribution from its design-and-build business. Some major
design-and-build projects are expected to commence only in
the second half of this year.

Earnings per share came to $1.47 and net tangible assets
were $17.50.

Group managing director Tan Kheng Hwee said in the
statement: "Despite the tough operating environment, the
group's core businesses are expected to perform strongly as
the majority of our projects come from the public sector,
which will be underpinned by government spending on
infrastructural projects."

The public sector projects secured by BBR have a total
contract value of $200 million and are expected to
contribute significantly to the group's bottomline.


NEW TOYO INTERNATIONAL: Results announcement
--------------------------------------------
New Toyo International Holdings posted a 53.3 per drop in
profits to $1.7 million for the half year ended June 30,
despite revenue rising 24.5 per cent to $70.8 million. The
group blamed difficult conditions in Malaysia, increased
interest costs, and a foreign exchange translation loss of
$2.4 million. Earnings per share fell from 1.99 cents to
0.81 cents. Net tangible assets per share rose to 42.4
cents from 39.2 cents. No dividend was declared.


PROGEN HOLDINGS: Results announcement
-------------------------------------
Progen Holdings' net earnings fell 67.9 per cent to
$644,000 for the half year ended June 30. Turnover
decreased to $7.1 million -- a 48 per cent drop from $13.8
million previously. Earnings per share on a fully diluted
basis was down from 1.68 cents to 0.54 cents. Net tangible
asset per share rose from 14.34 cents to 18.53 cents. No
interim dividend was declared.


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

BOOK CLUB: Takes writedown before increasing capital
----------------------------------------------------
The Bangkok Post reports Book Club Finance and Securities
Plc will write down its registered capital to 440 million
baht from 880 million baht before recapitalising to 1.94
billion baht, according to president Chira Suriyasasi.

Directors have approved the issue of 100 million
convertible preferred shares at 10-baht par for one billion
baht.

Fifty million common shares worth 500 million baht will
also be issued to swap for convertible debentures and/or
convertible unsecured debentures.

Of the total convertible preferred shares, 44 million will
be allotted to Siam Commercial Bank, a major shareholder of
Book Club, at 10 baht each. The deadline for subscription
and payment is November 18. The rest will be placed
privately with 17 institutional investors.


CPH (US) CORPORATION: To end operations
---------------------------------------
Castle Peak Holdings PCL has informed the SET that it
resolved to close two associated companies. Thai Union  
Garment Factory Co. Ltd., registered in China, has
registered capital of US$ 2,000,000. CPH  (US)  Corp.,
registered in the US, has registered capital of US$1
million. CPH holds 49% of Thai Union Garment Factory and
49% of CPH (US) Corp.

The two associated companies will close on September 30,
1998, due to unsuccessful operations and high competition
in the market.


CS COMMUNICATIONS: Sells holding in satellite phone system
----------------------------------------------------------
The Nation reports CS Communications Co (CSC), a subsidiary
of Shinawatra Satellite Plc, has sold its 3.2 per cent
stake in global satellite mobile phone provider ICO Global
Communication (Holdings) Ltd, generating revenue of US$61.2
million (about Bt2.45 billion).

However, CSC remains the only service provider for ICO in
Thailand and over 20 countries in the Asia-Pacific,
including Australia, the Philippines, Laos, Burma and
Vietnam. CSC has also set up a marketing arm, CS Satellite
Phone, for the new service.

ICO has a registered  capital of US$2.12 billion with
Immarsat holding the  majority stake of 9.97 per cent,
followed by Videsh Sanchar Nigam Ltd, TRW Icn, Satellite
Phone Japan, Hellenic Telecommunications Organisation SA
and DeTe Mobil.

Shinawatra Satellite holds a 51 per cent stake in CSC with
the balance belonging to the state-owned Communications
Authority of Thailand.

The sale of CSC's entire holding in ICO is seen as a part
of the company's debt-restructuring plan, aimed at
lessening its debt burden of US$70 million and boost
liquidity.

CSC will seek an extension to the payment period for the
balance of its debts. Shinawatra Satellite has US$170
million in debts reaching maturity this year.


KRUNGTHAI BANK: BOT to infuse Bt185 bn
--------------------------------------
The Bangkok Post reports the Bank of Thailand will pump 185
billion baht into the state-owned Krung Thai Bank, lifting
its registered capital from 34.85 billion baht to 219.85
billion, the highest of all companies in Thailand.

The central bank's Financial Institutions Development Fund
(FIDF) will buy 18.5 billion shares at 10 baht each,
turning Krung Thai (KTB) into a major tool in rebuilding
the financial sector. The FIDF already holds 59% of the
Krung Thai Bank.

Part of the FIDF's stake will come from the conversion into
shares of 130 billion baht in loans extended to First
Bangkok City Bank (FBCB) and Bangkok Bank of Commerce
(BBC), both of which are to be swallowed by KTB.
Under financial sector reforms announced on August 14, KTB
will absorb FBCB and the performing assets of BBC.

KTB chairman Mechai Viravaidya, confirming the new figure,
said the capital increase would be made in two stages to be
completed this year, the first of 77 billion baht and the
second of 108 billion.

Following the capital increase and corporate restructuring,
KTB will be prepared for sale to private investors as one
of Asia's biggest commercial banks outside Japan.

KTB's total assets at the end of last year stood at 792.7
billion baht, making it the third-biggest institution in
Thailand after Bangkok Bank and Thai Farmers Bank. It is
expected to grow to 1.3 trillion baht after the mergers.


THAI AUTOMOTIVE: Thai Chrysler must pay back loans
--------------------------------------------------
According to the Asian Wall Street Journal, Thai Automotive
Ltd. (formerly Thai Chrysler Automotive Ltd.) has been
ordered by a Thai court to repay about $8 million in loans
to Deutsche Bank AG and the Industrial Bank of Japan Ltd.   
The Detroit, USA, Chrysler Corporation didn't guarantee the
loans to Thai Chrysler, and was not named in the suit.  
However, Chrysler does have a 30 percent stake in Thai
Chrysler Automotive. The name of this joint venture has
been changed to Thai Automotive Ltd. since the filing of
the law suit.

The order came from the Central Intellectual Property and
International Trade Court. Thai Chrysler defaulted in
December 1997 on payments on a $40 million syndicated
revolving credit facility from 10 creditors, including the
two above mentioned banks. The order gives Thai Chrysler 30
days to repay the loans and authorizes creditors to seize
the company's assets if it fails to do so. The eight other
creditors (Citibank Finance Ltd., ING Bank, Fuji Bank Ltd.,
Kredietbank NV, Bank of Montreal, Bayersciche Vereinsbank
AG, Development Bank of Singapore Ltd., and Long-Term
Credit Bank of Japan Ltd.) have all filed lawsuits against
Thai Chrysler, and the court's verdict on these cases is
expected in a few weeks.  

The case related to loans that came due last year in the
middle of Thailand's financial crisis as well as trouble
between Chrysler and Swedish Motors Corporation, which owns
70 percent of Thai Chrysler.

Chrysler had sought to buy the Thai affiliate's inventory
and showrooms, and signed an agreement with the banks to
undertake to repay the loans to Thai Chrysler under easier
terms provided Chrysler gained control of the company.  

However, Chrysler and Swedish Motors could not agree on the
terms of the buyout, and the negotiations collapsed.  

Chrysler terminated Swedish Motors' right to sell and
service its products in Thailand, and has now established
its own service and distribution network in Thailand, under
the name Chrysler Sales & Services (Thailand) Ltd.


THAI GARMENT FACTORY: To end operations
---------------------------------------
Castle Peak Holdings PCL has informed the SET that it
resolved to close two associated companies. Thai Union  
Garment Factory Co. Ltd., registered in China, has
registered capital of US$ 2,000,000. CPH  (US)  Corp.,
registered in the US, has registered capital of US$1
million. CPH holds 49% of Thai Union Garment Factory and
49% of CPH (US) Corp.

The two associated companies will close on September 30,
1998, due to unsuccessful operations and high competition
in the market.


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

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

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

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