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             A S I A   P A C I F I C      

      Thursday, October 1, 1998, Vol. 1, No. 155

                    Headlines


* C H I N A   &   H O N G   K O N G *

BOSSINI INTERNATIONAL: Announces store closings
CARNABY GARMENT MANUFACTURING: Notice of creditors' meeting
CHARTER GAIN DEVELOPMENT: Winding-up petition
CITIC PACIFIC: Moody's lowers credit rating
CLIMAX INTERNATIONAL: Submits revised proposal to creditors

DC FINANCE HOLDINGS: Results announcement
DHARMALA HOLDINGS: Results announcement
FAIRYOUNG HOLDINGS: Results announcement
GENTLE SUCCESS COMPANY: Winding-up petition
INTERFORM CERAMICS: Receives writ from Belgian bank

MICRON TECHNOLOGY: Results announcement
MIDLAND REALTY: Results announcement
POLYLINK TRANSPORTATION: Winding-up petition
PUDONG DEVELOPMENT: Results announcement
Q-TECH HOLDINGS: Claim against subsidiary for HK$17 million

RIVERA HOLDINGS: Results announcement
SING TAO HOLDINGS: Aw breaks silence on plan to sell
STIME WATCH: Winding-up petition


* I N D O N E S I A *

CE INDONESIA: Moody's cuts rating of power projects
DSPL FINANCE COMPANY: Moody's cuts rating of power projects
PT PAITON ENERGY: Moody's cuts rating of power projects


* J A P A N *

LONG TERM CREDIT: Moody's cuts LTCB ratings
NIHON CEMENT: Moody's downgrades long-term debt rating
NITTETSU MINING: JRII lowers long-term debt ratings


* K O R E A *

HANJU TRADE COMPANY: Stock trading suspended
KEUMGANG LEATHER COMPANY: Stock trading suspended
KEUMGYUNG COMPANY: Stock trading suspended
KIA MOTORS: Creditors set terms for third Kia auction
MANDO MACHINE: Completes creditor reconciliation

SHINSEGYE COMPREHENSIVE FINANCING: Files for bankruptcy


* M A L A Y S I A *

BBMB FACTORING BHD: Downgrade of GRUF
CEMPAKA UTARA SDN BHD: Winding-up petition
DAILYGOLD SDN BHD: Voluntary winding-up
KENTAL TULIN SDN BHD: Winding-up petition
PEMBINAAN PINANG DUNIA SDN BHD: Winding-up petition

TENCO BHD: Distancing itself from property


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

PHILIPPINE AIRLINES: Leasing problems may foil PAL


* S I N G A P O R E *

NEPTUNE ORIENT LINES: Results announcement


* T H A I L A N D *

FIANACE ONE: BOT files charges against former executives


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

BOSSINI INTERNATIONAL: Announces store closings
-----------------------------------------------
Bossini International Holdings, a Hong Kong retailer, said
the retail business has been hit hard. Director and
financial controller Edgar To said Bossini had reduced its
workforce and outlets in order to save money as the retail
market continued to be subdued. Mr To refused to rule out
further closures. Mr To said the group would continue to
negotiate rent reductions with landlords. Further, staff
costs have to be cut by 20%. Interest and unemployment
rates were expected to remain high and business operations
would continue to be tough, Mr To said.


CARNABY GARMENT MANUFACTURING: Notice of creditors' meeting
-----------------------------------------------------------
In the High Court of Hong Kong Special Administration
Region Court of First Instance, companies winding-up
proceeding (No.441 of 1998), a notice of first meeting is
hereby given that creditors and contributors of Carnaby
Garment Manufacturing Company Limited will meet on October
15, 1998 at the Official Receiver's Office at 10/F,
Queensway Government Offices,66 Queensway, Hong Kong.


CHARTER GAIN DEVELOPMENT: Winding-up petition
---------------------------------------------
Notice is hereby given that a petition for the winding-up
of Charter Gain Development Limited by the High Court of
Hong Kong was, on the 9th day of September, 1998, presented
to the said Court by No28, Queen's Road Central Limited 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.  


CITIC PACIFIC: Moody's lowers credit rating
-------------------------------------------
Moody's Investor Service has lowered the credit rating of
Citic Pacific by one notch to Baa2 from Baa1, reflecting
the company's weakened financial position resulting from
its relatively high level of debt. The move came less than
one month after US based rating agency lowered the ratings
of the company's parent-China International Trust and
Investment Corp-by the same margin and to the same rating
level on August 31.

Moody's said Citic Pacific's debt had remained at a
relatively high level since its purchase of a 20% stake in
China Light & Power in March last year. The sharply
increased debt has not reduced the company's financial and
operational flexibility, but also weakened the level of
protection provided to its creditors.

The agency warned that the unstable interest-rate
environment and tight liquidity conditions in Hong Kong
posed higher interest-rate and refinancing risks to the
company.  


CLIMAX INTERNATIONAL: Submits revised proposal to creditors
-----------------------------------------------------------
Climax International, a stationery maker, had submitted a
revised proposal to bank creditors to refinance its $600
million in debts, chief executive Simon Hsu Nai-cheng said.

The earlier proposal, which included a rights issue, was
made impossible due to the company's negative net asset
value, Mr Hsu said. Climax would not reveal the details of
the revised proposal, pending an announcement. Climax had a
NAV of $223 million at the March year-end this year after a
$480.12 million net loss for the full year.


DC FINANCE HOLDINGS: Results announcement
-----------------------------------------
Huge provisions forced DC Finance (Holdings) to report a
$216.88 million net loss for the six months to June 30,
against a $113.96 million profit in the first half of last
year. The company made $203 million in provisions for loss
on revaluation of investment properties, potential loss in
value of listed investments and bad debts.


DHARMALA HOLDINGS: Results announcement
---------------------------------------
Dharmala Holdings was in the red for the six months to June
30 following an exceptional loss of $30.1 million. It
incurred an interim loss of $94.1 million compared with a
profit of $26.89 million for the first half of 1997. The
exceptional loss was made up of a $10 million provision for
the reduced value of an unlisted investment and $20.1
million for bad and doubtful debts. Turnover dipped 11.68%
to $798 million from $903.65 million last year. There was a
$98.2 million operating loss compared to a profit of $34.1
million in the previous year.

The company was said to have been disappointed by results
from its agro-trading and manufacturing division. As part
of the arrangements for the disposal of subsidiary DMT  
Trading (HK), which was completed last August, the company
and Dharmala Intitutama, a controlling shareholder, agreed
to subscriptions of US$11.52 million and US$7.68 million,
respectively, for convertible loan notes issued by Dharmala
Agrifood Asia.

Dharmala Holdings was said to be in discussions with
Institutama and Agrifood Asia on the current situation and
was seeking independent advice on the subscription.


FAIRYOUNG HOLDINGS: Results announcement
----------------------------------------
Fairyoung Holdings said yesterday it posted an interim loss
of $84 million, mainly due to an exceptional loss of $67
million from the disposal of the group's entire interest in
Pacific Ports. The group's executive director, Calvin Tsao,
said despite the loss, the Pacific Ports sale would be
beneficial to the group as it would help Fairyoung
restructure amid Asia's financial crisis. No dividend was
recommended.


GENTLE SUCCESS COMPANY: Winding-up petition
-------------------------------------------
Notice is hereby given that a petition for the winding-up
of Gentle Success Company Limited by the High Court of Hong
Kong was, on the 22th day of September, 1998, presented to
the said Court by Lai Yiu Sai and the petition is heard on
29th of October, 1998. Other creditors who support or
oppose the making of the order may appear at the time of
the hearing.  


INTERFORM CERAMICS: Receives writ from Belgian bank
---------------------------------------------------
A wholly-owned subsidiary of the Company received a writ
dated 24 September 1998 from one of its creditors for
repayment of debts. The creditors of the Company and its
subsidiaries (the 'Group') are still considering the
standstill agreement and if the standstill agreement cannot
be reached, the cashflow position of the Group will be
affected.

Further to the announcement dated 22 September 1998, the
Group received a writ issued on 24 September 1998 from
Generale Belgian Bank, one of its creditors, claiming for
the repayment of debts in the amount of approximately
US$273,000 (equivalent to approximately HK$2,116,000) due
from the Group. In the meantime, steps have been taken by
the Company to negotiate with all of its lending banks to
reschedule the repayment of their debts.

As at the date of this announcement, no formal standstill
agreement has been reached yet. If the standstill agreement
cannot be reached, the cashflow position of the Group will
be affected. Other than the above, there have not been any
events that have material adverse effects on the Group's
business operations and financial position since its last
announcement dated 22 September 1998. Furthermore, there
has been no other material adverse changes in the Group's
business and financial position since its last announcement
dated 22 September 1998.


LAND & SKY WORLDWIDE: Winding-up petition
-----------------------------------------
Notice is hereby given that a petition for the winding-up
of Land & Sky Worldwide Holdings Limited by the High Court
of Hong Kong was, on the 4th day of September, 1998,
presented to the said Court by Livasiri & Coand 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.  


MICRON TECHNOLOGY: Results announcement
---------------------------------------
Micron Technology reported losses of US$89.1 million for
the most recent quarter and S$233.7 million for the past
year. Sharply depressed computer memory chip prices were
blamed. Loss per share of US$1.10 for the year came on
sales of US$3 billion.


MIDLAND REALTY: Results announcement
------------------------------------
Midland Realty, a Hong Kong developer, said it has dipped
into the red since its listing three years ago. It posted a
net interim loss of $22.72 million for the six months ended
June 30 compared with a year-on-year attributable profit of
$329.86 million.

Midland took and exceptional loss of $26.7 million from the
branch closures. Excluding exceptional losses, Midland's
operating profit was $3.63 million. The company said
turnover was $434.72 million compared with $1.22 billion in
the first half of last year.

Chairman Freddie Wong Kin-yip said with developers dumping
projects on the market at a lower-than market price, market
sentiment would be further dampened. He said the group
would continued to dispose of its investment properties in
order to repay bank loans and reduce interest expenses.


POLYLINK TRANSPORTATION: Winding-up petition
--------------------------------------------
Notice is hereby given that a petition for the winding-up
of Polylink Transportation Limited by the High Court of
Hong Kong was, on the 21st day of September, 1998,
presented to the said Court by Yeung Wai Ming 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.  


PUDONG DEVELOPMENT: Results announcement
----------------------------------------
Pudong Development Holdings sustained a $111.54 million net
loss in the first half of this year after an attributable
profit of $23.81 million in the six months to September 30
last year. The company, a Tomson Group member, said
provisions for bad debts, a fall in property values and a
dimunition in the value of marketable securities caused the
heavy loss. Turnover was down to $92.85 million compared
with $248.72 million in the corresponding period. No
dividend was recommended.


Q-TECH HOLDINGS: Claim against subsidiary for HK$17 million
-----------------------------------------------------------
Legal proceedings have been filed by Thakral Corporation
(HK) Ltd. (the "Supplier") against South Boss Resources
Limited (the "Subsidiary"), a wholly owned and the
principal operating subsidiary of the Company, in respect
of a disputed claim for about HK$17  million. The claim
disputed is for goods sold and delivered to the subsidiary.
The Group is taking legal and financial advice on the
implications of the proceedings.

Discussions are currently taking place between the Company
and independent third parties for the subscription of a
convertible bond to provide additional working capital to
the Company. The negotiations are at a preliminary stage
and to date no firm agreement has been entered into.


RIVERA HOLDINGS: Results announcement
-------------------------------------
Tomson Group member Rivera (Holdings) reported a $56.64
million attributable loss for the first half of the year,
following a 26.44 million loss in the six months to
September 30 last year. The company said loss on disposal
of a portion of the interest in an associated company was
partly responsible for the performance. Turnover for the
six months to June 30 this year fell to $1.02 billion,
after being $1.15 billion in the corresponding period last
year.  


SING TAO HOLDINGS: Aw breaks silence on plan to sell
----------------------------------------------------
According to the SCMP, Sing Tao Holdings chairman Sally Aw
Sian has confirmed that talks are being held with various
parites over the sale of her 50.25 per cent interest in the
company, the first time she has personally discussed the
sale.

Ms Aw denied that Sing Tao's poor performance last year was
creating obstacles to a sale. She declined to comment on
when any possible deal might go ahead and would not
disclose details until a deal was sealed.

She said her age of 67 was a prime factor prompting her to
sell the company and it's more a matter of retirement than
of financial problems as had been rumored about.

Sing Tao, which owns Chinese-language newspaper Sing Tao
Daily News and English-language daily Hong Kong Standard,
suffered a $115.99 million attributable loss after a $154.6
million write-down of its investment in publishing
associate Culturecom Holdings in the year to March.

Culturecom, which operates flag-ship newspaper Tin Tin
Daily News, launched a cost-cutting programme last month
that made 400 employees redundant. The company retains 500
staff.

According to the Hong Kong Standard, Ms Aw said after
yesterday's annual general meeting of Sing Tao subsidiary
Culturecom (Holdings) that the group's financial position
remained firm and has no plans to lay off staff and it has
not cut wages. Hong Kong Standard has recorded a profit
for the year to Mar 31. Its turnaround was due to a
reduction in its operating costs resulting from stringent
cost controls. For the year to Mar 31, Hong Hong Standard
posted an 11 per cent increase in advertising revenue.
Revenues from corporate announcements and notices saw a 42
per cent increase during the period.

Ms Aw stressed that her interest in selling her stake in
Sing Tao by no means reflect a negative outlook on the
newspaper industry in Hong Kong. She said that the outlook
for the local newspaper industry is quite good.


STIME WATCH: Winding-up petition
--------------------------------
Notice is hereby given that a petition for the winding-up
of Stime Watch International Holding Limited by the High
Court of Hong Kong was, on the 4th day of September, 1998,
presented to the said Court by Angla Chinese Corporate
Finance Limited 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.  


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

CE INDONESIA: Moody's cuts rating of power projects
---------------------------------------------------
The Asian Wall Street Journal reports Moody's Investor
Service Inc. has reduced the ratings on three independent
power projects in Indonesia.

This cut was prompted by the recent failure of Pertamina,
the Indonesian state-oil oil and gas company, and PNL to
make full payment for electricity delivered to them by DSPL
Finance and CE Indonesia. This failure represents a
material breach of contract, and in turn means a failure of
the government of Indonesia to stick to its support
obligations to ensure that Pertamina and PNL honor their
obligations.

Hence, Moody's has reportedly concluded that it is
inevitable that similar contract breaches will occur when
other independent power projects begin to operate.  CE
Indonesia Funding Corporation was downgraded to Ca.


DSPL FINANCE COMPANY: Moody's cuts rating of power projects
-----------------------------------------------------------
The Asian Wall Street Journal reports Moody's Investor
Service Inc. has reduced the ratings on three independent
power projects in Indonesia.

This cut was prompted by the recent failure of Pertamina,
the Indonesian state-oil oil and gas company, and PNL to
make full payment for electricity delivered to them by DSPL
Finance and CE Indonesia. This failure represents a
material breach of contract, and in turn means a failure of
the government of Indonesia to stick to its support
obligations to ensure that Pertamina and PNL honor their
obligations.

Hence, Moody's has reportedly concluded that it is
inevitable that similar contract breaches will occur when
other independent power projects begin to operate.  
DSPL Finance Company BV was downgraded to Caa2.


PT PAITON ENERGY: Moody's cuts rating of power projects
-------------------------------------------------------
The Asian Wall Street Journal reports Moody's Investor
Service Inc. has reduced the ratings on three independent
power projects in Indonesia.

This cut was prompted by the recent failure of Pertamina,
the Indonesian state-oil oil and gas company, and PNL to
make full payment for electricity delivered to them by DSPL
Finance and CE Indonesia. This failure represents a
material breach of contract, and in turn means a failure of
the government of Indonesia to stick to its support
obligations to ensure that Pertamina and PNL honor their
obligations.

Hence, Moody's has reportedly concluded that it is
inevitable that similar contract breaches will occur when
other independent power projects begin to operate. PT
Paiton Energy Funding BV was downgraded to Caa2.


=========
J A P A N  
=========

LONG TERM CREDIT: Moody's cuts LTCB ratings
-------------------------------------------
The Asian Wall Street Journal reports Moody's Investor
Service Inc. has lowered it ratings on the Long Term Credit
Banks of Japan Ltd. (LTCB) due to the extreme stress placed
on its commercial-banking operations, continued
deterioration of its asset and liability profile, and the
diminishing likelihood of a recapitalization and subsequent
merger with Sumitomo Trust and Banking Company.  

The ratings affected are senior debt rating from Ba1 to
Ba3, subordinated debt rating from B3 to Caa1, long-term
Letter of Credit obligations rating from Ba1 to Ba3, Long-
Term Credit Bank of Japan Finance NV's senior rating from
Ba1 to Ba3 Long-Term Credit Bank of Japan Finance NV's
subordinated debt rating from B3 to Caa1.

The lowered senior debt rating reflects increasing concern
regarding the continued availability of systemic support
mechanisms to non-depository obligations of financially
weaken banks under extreme stress, and the lack of
political consensus for resolution. The reduction in
subordinated debt reflects the substantially increased risk
to subordinate debt holders, due to the extremely limited
financial resources at the bank.


NIHON CEMENT: Moody's downgrades long-term debt rating
------------------------------------------------------
Moody's Investor Service Inc said it downgraded its
unsecured long-term debt rating on Nihon Cement Co to Ba2
from Ba1, while it affirmed Chichibu Onoda Cement Corp's
Ba2 senior unsecured long-term debt rating.

The rating actions are based on Moody's expectation that,
while the companies' intention to merge with Taiheiyo
Cement Corp., it will not have any significant short- to
medium-term impact on the new company's earnings or debt
holder protection measurements, the rating agency said. The
merger, which is expected to close in October, will create
the largest cement company in Japan, Moody's said.


NITTETSU MINING: JRII lowers long-term debt ratings
---------------------------------------------------
Japan Rating & Investment Information Inc said it
downgraded long-term debt ratings on Nittetsu Mining Co to
triple-B-plus from single-A-minus. The downgrade affects
Nittetsu's total 20 billion yen of unsecured convertible
bonds.

Nittetsu's mainstay product, limestone, is cost
competitive, as the company holds Japan's largest limestone
quarry, which is linked to a large-volume marine
transportation system, R&I said. But the operating
environment has deteriorated rapidly as the stagnant
economy has caused a sharp decline in steel and cement
output, the rating agency said. Further, Nittetsu's
interest-bearing debt is on the increase, due to the
company's large-scale capital investment plans, R&I said.


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

HANJU TRADE COMPANY: Stock trading suspended
--------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Korea Stock Exchange suspended the trade
of the Keumgang Leather Company, the Keumgyung Company, and
the Hanju Trade Company.

As these companies have not submitted their operation
normalization plans to a court, they will soon be taken off
from the list of companies traded at the Korea Stock
Exchange.


KEUMGANG LEATHER COMPANY: Stock trading suspended
-------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Korea Stock Exchange suspended the trade
of the Keumgang Leather Company, the Keumgyung Company, and
the Hanju Trade Company.

As these companies have not submitted their operation
normalization plans to a court, they will soon be taken off
from the list of companies traded at the Korea Stock
Exchange.


KEUMGYUNG COMPANY: Stock trading suspended
------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Korea Stock Exchange suspended the trade
of the Keumgang Leather Company, the Keumgyung Company, and
the Hanju Trade Company.

As these companies have not submitted their operation
normalization plans to a court, they will soon be taken off
from the list of companies traded at the Korea Stock
Exchange.


KIA MOTORS: Creditors set terms for third Kia auction
-----------------------------------------------------
According to the Hong Kong Standard, Kia said its creditors
have sent guidelines for the third auction of Kia and
affiliate Asia Motor to five companies.

The successful bidder will be announced on Oct 19 from Ford
Motor, General Motors, Samsung Motor, Daewoo Motor and
Hyundai Motor. Applicants are required to submit bid
documents by Oct 12.

Creditors proposed the same bidding terms as in earlier
auctions, except for the amount of debt write-offs.
Creditors will set up their positions on bidding methods
and the debt write-off amount by Oct 2.

All three Korean auto makers said they would again bid in
the third auction. Ford said the debt owed by Kia and Asia
Motors was too high but it would still be interested in Kia
at the right debt level.

The combined debt of Kia and Asia Motors exceeds their
assets by 5.1 trillion won. Kia Motors has 18,000 employees
and can produce 1.03 million vehicles a year. Asia Motors
can turn out 250,000 vehicles a year with 5,800 staff.


MANDO MACHINE: Completes creditor reconciliation
------------------------------------------------
The Korean language Maeil Kyungje reports that the Mando
Machine Company, a unit of the Halla Group, has completed
its creditor reconciliation on September 28, 1998. Mando
Machine Company has received funds from Rothschild Inc., a
leading American fund manager.


SHINSEGYE COMPREHENSIVE FINANCING: Files for bankruptcy
-------------------------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Shinsegye Comprehensive Financing
Company went bankrupt. Creditors have until November 30,
1998 to file their claims. The company's address is 830-128
Pumil-dong, Tong-gu, Pusan and the president is Mr. Chung
Cheol-seop.


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

BBMB FACTORING BHD: Downgrade of GRUF
-------------------------------------
Rating Agency of Malaysia downgraded the short-term rating
of BBMB Factoring Bhd's GRUF from P1 to P2. The rating
reflects the corporate guarantee provided by its parent,
Bank Bumiputra Malaysia Bhd (BBMB), which all risks
associated with the debt issue will be absorbed by the
parent company.

BBMB recorded a pre-tax loss of RM1.2bil for the year March
1998.


CEMPAKA UTARA SDN BHD: Winding-up petition
------------------------------------------
Asia Commercial Finance (M) Bhd on 7/9/98 petitioned for
the winding-up of Cempaka Utara Sdn Bhd. The petition is
directed to be heard on 13/12/98.


DAILYGOLD SDN BHD: Voluntary winding-up
---------------------------------------
The members of Dailygold Sdn Bhd on 25/9/98 resolved to
wind-up the company voluntarily. Creditors of the company
are requested to submit their claims before 30/10/98.


KENTAL TULIN SDN BHD: Winding-up petition
-----------------------------------------
Cable Slab Co. (M) Sdn Bhd on 4/8/98 petitioned for the
winding-up of Kental Tulin Sdn Bhd. The petition is
directed to be heard on 27/11/98.


PEMBINAAN PINANG DUNIA SDN BHD: Winding-up petition
---------------------------------------------------
Multi-Mix Sdn Bhd on 28/8/98 petitioned for the winding-up
of Pembinaan Pinang Dunia Sdn Bhd. The petition is directed
to be heard on 2/12/98.


TENCO BHD: Distancing itself from property
------------------------------------------
Tenco Bhd group (listed on the KLSE), which suffered a net
loss before tax of RM41.5mil during the 1997/98 financial
year compared with a profit of RM7.6mil previously, is
moving away from the depressed property market.


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

PHILIPPINE AIRLINES: Leasing problems may foil PAL
--------------------------------------------------
According to the SCMP, Philippine Airlines, which was
grounded last week by mounting losses and labor disputes,
said yesterday it would reopen on Oct 7 after its largest
union agreed not to strike for 10 years.

Yesterday, Mr Estrada said government mediators had
persuaded PAL's union to swap a 10-year suspension of its
collective bargaining rights for a 20 per cent stake in the
airline. The workers will also get four seats on PAL's 15-
member board. That was the same proposal that the PAL
Employees' Association rejected twice, prompting major
shareholder Mr Tan to close the 57-year-old airline. The
new deal must still be ratified by union members. If the
union members agreed, PAL would resume domestic and
international flights on Oct 7 with a reduced fleet of 22
planes, down from 54 at the start of the year.

Government television reported yesterday that the union's
agreement was not signed by six members of its 22-member
board and that the union's radical wing had condemned it.
Mr Estrada said those opposing the agreement could
challenge it in court.

Winning rank-and-file approval for the pact might not be as
certain as government officials expect. Labour Secretary
Bienvenido Laguesma said union approval was only one step
in the process of reopening the airline.

The government said Cathay Pacific Airways will stop
providing domestic charter flights in the Philippines when
Philippine Airlines resumes operations next week.

Foreign investors, including Cathay and US-based Northwest
Airlines, may be interested in investing in PAL. Foreign
ownership of an airline is capped by law at 40 per cent.
PAL officials Mr Lucio Tan also would be willing to pump in
more money if employees would agree to the no-strike
provision.

Corporate regulators said that 16 leasing firms, all
registered in the Caymen Islands, filed petitions before
the Securities and Exchange Commission to take custody of
PAL's 24 leased aircraft. Lawyers for the lessors argued
that under the lease agreements, PAL could be declared in
default since June when it filed for receivership and
stopped servicing its debts following a pilots' strike that
subsequently led to its closure on Sept 23. The lawyers
said the lessors had the right to serve notices terminating
the lease and demand a fine for default.

The US Export-Import Bank repossessed one of PAL's Boeing
747-400 jumbo jets in Los Angeles last week after PAL
announced it was closing.


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

NEPTUNE ORIENT LINES: Results announcement
------------------------------------------
Neptune Orient Lines Ltd said it incurred a net loss of
S$240.8 million for the six months ended June 30, and
predicted that it won't be profitable for the full year
even though it expects an improved performance in the
second half.

The Singapore-based shipping group blamed the loss on
Asia's financial crisis, lower freight rates, severe trade
and container imbalance, and railroad congestion in the US.
Neptune said inbound container volumes to Southeast Asia
plunged 36% from a year earlier, with Malaysia posting the
largest drop of 40%.


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

FIANACE ONE: BOT files charges against former executives
--------------------------------------------------------
The Bangkok Post reports The Bank of Thailand yesterday
filed charges against Pin Chakkapak and two other former
top executives of Finance One Plc, accusing them of
approving loans exceeding 2.1 billion baht without
collateral to two firms closely related to the now-defunct
company.

The charges were lodged with the Economic Crime
Investigation Police after documents relating to Finance
One, at one time the largest finance company in Thailand,
disappeared. The government is investigating the
circumstances.

The central bank asked police to bar Mr Pin, former
president; Termchai Pinyawat, former managing director for
investment banking; and Samran Kanokwatanawan, former
managing director for corporate credit, from leaving
Thailand and to freeze their assets.

But the trio apparently left the country more than a year
ago with billions of baht that they are accused of
misappropriating from Finance One.

Rathakorn Nimwatana, central bank assistant governor, said
the three executives granted loans worth altogether 2.127
billion baht to two holding companies in which Finance One
held 10% stakes. He refused to identify the companies.
Altogether 16 loans were approved between November 29, 1996
and February 24, 1997. One company took out 12 loans
through discounts on promissory notes and bills of
exchange, totalling 1.504 billion baht. The other took out
four loans totalling 623 million baht.

Mr Rathakorn said the loans were granted without collateral
or personal guarantees. The two companies were located at
the same place, with Finance One among their major
shareholders.

On October 31, 1996, less than a month before Finance One
began granting the loans, the first company had a negative
net worth of 1.643 billion baht and registered capital of
only 300 million baht. In other words, the company was
1.343 billion baht in the red.

The other company had registered capital of 10 million baht
and a net loss of 92 million baht.

At its peak, Finance One had assets worth more than 120
billion baht, larger than several banks.


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
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