/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/981002.MBXT R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, October 2, 1998, Vol. 1, No. 156 Headlines * C H I N A & H O N G K O N G * CA PACIFIC: CA Pacific wind-up remains on track GKC HOLDINGS: Directors searching for missing documents KWONG ON BANK: Fuji Bank to sell its stake * I N D O N E S I A * PT OMETRACO: Ometraco bankruptcy ruling called illogical SEMEN GRESIK: Cemex to buy 14 pc stake in Gresik * J A P A N * DAIWA SECURITIES: To cut back overseas operations EBARA CORPORATION: Projects 2 bln yen interim net loss JAPAN AIRLINES: Expects 46% drop in first-half JAPAN LEASING CORP: Lawyer named as administrator LONG TERM CREDIT: Lawmakers, LDP agree on reform measures LONG TERM CREDIT: LTCB to sell headquarters MARUBENI CORPORATION: Predicts first half losses MEIKO SECURITIES: Agrees to merger with National Securities MITSUI MUTUAL LIFE: Borrows 50 bln yen from group firms NKK CORPORATION: To trim payroll by 2000, cut exec pay NATIONAL SECURITIES: Agrees to merger with Meiko Securities NIPPON STEEL: To buy subsidiary's cement business NOMURA SECURITIES: Moody's lowers ratings SEIKO CORPORATION: Expects huge losses SUMITOMO CORPORATION: Predicts first half losses TESCON COMPANY: Bounces Y115 million check * K O R E A * DAESUNG COMPANY: Completes creditor reconciliation DU-IN ELECTRONICS: Trading suspended KIA MOTORS: Kia's third auction details to be set KISAN DEVELOPMENT: Insolvency notice LG GROUP: Wins 500 bln won British Telecom investment SAMHYUP INDUSTRY: Trading suspended * M A L A Y S I A * CHOMELITA SDN BHD: Voluntary winding up COMMERCE ASSET-HOLDINGS BHD: Results announcement GOLDEN MARKS PRINTS & PACKS SDN BHD: Winding-up petition RENONG BHD: Results announcement SLDB MANAGEMENT SERVICES SDN BHD: Voluntary winding up STREET ICECREAM SDN BHD: Voluntary winding-up TEMPCON FASTENERS INDUSTRIES: Winding-up petition VISAGE ENGINEERING SDN BHD: Winding-up petition * P H I L I P P I N E S * AYALA LAND: Issues shares to parent company * S I N G A P O R E * AMARA HOLDINGS: Results announcement FUJI OFFSET PLATES: Results announcement GRP LIMITED: Results announcement HOTEL GRAND CENTRAL: Results announcement INNO-PACIFIC HOLDINGS: Results announcement IPC: Results announcement KIAN HO BEARINGS: Results announcement LIANG HUAT ALUMINIUM: Results announcement LIM KAH NGAM: Results announcement NATIONAL KAP: Results announcement NOEL GIFTS: Results announcement SHOWPLA ASIA: Results announcement TYE SOON: Results announcement * T H A I L A N D * DOK-YA: Potential investors vy for book chain NORTH STAR PCL: Results announcement SIAM CEMENT: To restructure business lines THAI T&T: Thai Telephone suspending payments on most loans ================================= C H I N A & H O N G K O N G ================================= CA PACIFIC: CA Pacific wind-up remains on track ----------------------------------------------- According to the SCMP, the request by one of CA Pacific's creditors, Pui Hang, for a one-month stay of the winding up of the company for the purposes of putting together or promoting a scheme of arrangement was rejected by the court. A Pui Hang director proposed a return of shares and accounts payable fully to all CA Pacific clients and creditors. To make this possible, it was suggested that if CA Pacific did not have the shares requested by clients in Central Clearing and Settlement System accounts, it could purchase them on the stock market or pay the value of the shares at the date of liquidation. The judge said Pui Hang appeared to favour reimbursing "pure securities" clients, rather than those classified as finance clients which she considered unfair. She also said any further delay could cause more uncertainty for shareholders. In June, Coopers & Lybrand indicated CA Pacific and its margin-financing operation owed 11,000 clients $1.4 billion in shares and faced a $500 million shortfall. The judge also rejected Pui Hang's application to remove two liquidators from Coopers & Lybrand, saying the counsel for Pui Hang had failed to offer an adequate explanation of why CA Pacific would suffer any prejudice because of the liquidators' involvement. The Hong Kong Standard gives a brief account of the case, saying that the application by creditors to delay the winding up was rejected by the court for the possible anxiety this would cause to shareholders and the application to remove the liquidators was rejected because no actual conflict had yet arisen despite a potential conflict of interest. GKC HOLDINGS: Directors searching for missing documents ------------------------------------------------------- GKC Holdings has informed the SEHK that it is investigating the possibility of fraud due to certain missing documents that could affect the group's results for the year ended March 31, 1998. Due to the missing of a significant part of the documentation relating to activities of the Group, the present directors of the Company considered it necessary to take further steps to collect further information for the purpose of establishing that the assets and liabilities as set out in the books of the Group truly and fairly reflect the financial situation of the Group. The missing supporting documents include, inter alia, purchase and sales contracts, purchase orders and evidence of receipts for goods, collection records and payment records. The Commercial Crime Bureau is investigating alleged fraud. The Directors also appointed KPMG Peat Marwick in August 1998 as independent accountants. They have completed a preliminary review of the financial position of the Group as at July 31, 1998. They have also reported, inter alia, the problem of not being able to base their review on a complete set of documentation relating to the activities of the Group. The Independent Accountants are now discussing with the Directors possible steps which may be required to improve the financial position of the Group. In light of the above mentioned factors, the Company has applied to the Stock Exchange for an extension of time to announce the 1998 Final Results to on or before November 30, 1998 and to despatch the audited accounts and the notice of the 1998 Annual General Meeting to shareholders to on or before December 9, 1998. Dealings in the shares of the Company on the Stock Exchange have been suspended since July 3, 1998 and will remain suspended until further notice. KWONG ON BANK: Fuji Bank to sell its stake ------------------------------------------ Kwong On Bank yesterday said its controlling shareholder, Fuji Bank, was engaged in talks to sell its shares in the bank to a third party. Fuji Bank owns 50.1% of Kwong On Bank, but of that 13.6% is through Kwong On Holdings. The Leung Family owns 45% through its various members. A spokesman confirmed that negotiations were being held between Fuji Bank and certain leading financial institution about a possible disposal by Fuji Bank of its entire shareholdings in Kwong On. Ensnared in domestic problems in Japan, Fuji Bank might attempt to dispose of shares to raise cash, analysts said. One analyst said Fuji Bank would not be able to assist Kwong On with any expansion plans because of an anticipated difficult third quarter. ================= I N D O N E S I A ================= PT OMETRACO: Ometraco bankruptcy ruling called illogical -------------------------------------------------------- The Asian Wall Street Journal reported that insolvency experts in Indonesia claim there is no logic in a judge's arguments on the bankruptcy case related to PT Omertraco Corporation. The decision by the Jakarta Commercial Court is related to a bankruptcy petition filed by a syndicate of foreign and domestic banks (led by American express Bank Ltd) against this large, listed, and well known Indonesian conglomerate. The syndicate was seeking to recover $125 million, $60 million of which was lent to Omertraco, and $65 million that was lent to a subsidiary via a loan agreement for which Omertraco has acted as guarantor of its subsidiary. The syndicate has also tried to recover from Ometraco Multi Artha $75 million owed to a consortium of domestic banks. As the companies are two separate legal entities, the creditors filed two separate cases. However, the judge threw out the petition against PT Omertraco Corporation claiming the creditors should have filed just one bankruptcy case against the group. Ometraco Multi Artha has earlier secured a 45 day suspension of payment for its debts pending the results of negotiations with its creditors. The banks have eight days to lodge an appeal, and the syndicate is hoping the Supreme Court will overturn this decision. SEMEN GRESIK: Cemex to buy 14 pc stake in Gresik ------------------------------------------------ According to the SCMP, Indonesia has given the go ahead for Cemex to buy a stake in state-owned Semen Gresik for US$14.6 million, capping a three-month effort by the Mexican company to increase its presence in Southeast Asia. Cemex, the world's third largest cement maker, will pay the Indonesian government $1.38 a share for a 14 per cent stake in Gresik, Indonesia's largest cement company. The purchase gives Cemex its second foothold in Southeast Asia and keeps the company from falling behind its bigger rivals Holderbank Financiere Glarus, and Lafarge, which have been snapping up cement stakes in the region. Cemex is expected to use Gresik as a base to export cement throughout Asia. The company plans to buy at least another 6 per cent of Gresik's shares that publicly trade. ========= J A P A N ========= DAIWA SECURITIES: To cut back overseas operations ------------------------------------------------- The Nihon Keizai newspaper reports Daiwa Securities Co. will close 12 of its 30 overseas offices, trimming 800 jobs to leave a foreign payroll of 1,000 or fewer, company officials announced Tuesday. Daiwa hopes to improve earnings by shrinking its international banking operations, claiming they require capital that, with the brokerage's current credit rating, is quite expensive. International operations generated expenses totaling 79.3 billion yen in the year ended March. The company says it will reduce that to 45 billion yen by fiscal 1999. EBARA CORPORATION: Projects 2 bln yen interim net loss ------------------------------------------------------ The Nihon Keizai newspaper reports Ebara Corp. expects a net loss of some 2 billion yen for the first half ending Sept. 30, company officials said Tuesday. It would be the only net loss in the history of the leading manufacturer of pumps and air blowers, except for those incurred in several years following World War II. Ebara posted net profit of 2.5 billion yen in the first half of fiscal 1997. JAPAN AIRLINES: Expects 46% drop in first-half ---------------------------------------------- The Nihon Keizai newspaper reports Japan Airlines Co. expects a 46% year-on-year plunge in operating profit for the fiscal first half through September to 20 billion yen owing to declining passenger traffic on its international and domestic routes, company sources said Wednesday. Cost- cutting efforts yielded significant savings but were not enough to make up for the fall in revenue. JAPAN LEASING CORP: Lawyer named as administrator ------------------------------------------------- Kyodo News reports the Tokyo District Court on Tuesday appointed lawyer Yoshihiko Okuno as administrator to oversee the restructuring of Japan Leasing Corp., which has collapsed with massive debts. Okuno told reporters he has received resignations from all executives of Japan Leasing, one of three nonbank affiliates of the ailing Long-Term Credit Bank of Japan. Okuno also said he will begin proceedings for the company in a fair and impartial process which he said is expected to take two or three months. Japan Leasing filed Sunday for court protection from its creditors under the Corporate Rehabilitation Law with debts of 2.18 trillion yen. LONG TERM CREDIT: Lawmakers, LDP agree on reform measures --------------------------------------------------------- According to the Hong Kong Standard, party officials said Japan's lower house of parliament hopes to pass this week the first of its key reform bills to tackle the banking crisis. The ruling Liberal Democratic Party and opposition lawmakers struck a broad agreement on a series of bills to help Japan's banks clean out their 87.5 trillion yen worth of bad loans. The LTCB, which virtually collapsed in June, will be nationalised and its bad loans sold off. A private buyer will then be sought, and is likely to be Sumitomo Trust and Banking, which has been in merger talks with LTCB. LONG TERM CREDIT: LTCB to sell headquarters ------------------------------------------------ According to the SCMP, the Long Term Credit Bank of Japan will sell its Tokyo headquarters as the bank struggles to pay for asset and bad loan disposals to extend its life. The bank said it would sell the property for 96.4 billion yen generating a gain of 51.9 billion yen. The building with a floor space of 62,424 square meters would be sold to its affiliate, Chobuil Corp, which was not included in LTCB's group earnings. MARUBENI CORPORATION: Predicts first half losses ------------------------------------------------ The Nihon Keizai newspaper reports Sumitomo Corp. and Marubeni Corp. both predict net losses for the first half ending Sept. 30 due to revaluation losses on holdings of bank and other stocks, officials from the companies said Tuesday. Neither of the major trading houses are expected to sell assets or take other measures to realize offsetting profits. Instead they are likely to book extraordinary losses to cover the write-downs. Marubeni sees its net loss for the half exceeding 30 billion yen, compared with profit of 4.6 billion yen one year earlier. The exact magnitude of the loss depends on the closing prices of stocks Wednesday. Marubeni will also write off its investment in failed Toa Steel Co. in the half. MEIKO SECURITIES: Agrees to merger with National Securities ----------------------------------------------------------- Dow Jones reports Japan's National Securities Co. and Meiko Securities Co. announced Wednesday they have agreed to merge. The joining of the two second-tier securities companies comes as many Japanese financial companies are forming alliances to cope with the "Big Bang" financial deregulation. Osaka-based Meiko Securities and Tokyo-based National Securities said they will merge April 1, 1999. Under the merger plan, one Meiko share will be allocated to two National shares. The merged company will be tentatively called Meiko National Securities. MITSUI MUTUAL LIFE: Borrows 50 bln yen from group firms ------------------------------------------------------- The Nihon Keizai newspaper reports Mitsui Mutual Life Insurance Co. Wednesday raised a total of 50 billion yen through perpetual subordinated loans extended by Sakura Bank (8314), Mitsui Marine & Fire Insurance Co. (8752) and three other group firms, The Nihon Keizai Shimbun learned. The company will use the funds to restore its creditworthiness by boosting its net capital, which has deteriorated due to low interest rates and the weak stock market. The Mitsui group earlier agreed to inject 300 billion yen in fresh capital into Sakura Bank. The move will lift Mitsui Mutual's solvency margin, which is used to measure a life insurer's ability to meet policy obligations and is thus a good indicator of financial standing. The company's solvency margin was 491.6% at the end of March, but would be down significantly considering the closing level for Tokyo stocks Wednesday. Instead, it will be up 40 points because of the capital infusion. NKK CORPORATION: To trim payroll by 2000, cut exec pay ------------------------------------------------------ The Nihon Keizai newspaper reports NKK Corp. will cut 2,000 jobs and further reduce executive pay by March 2000, hoping to reduce fixed costs by 15-20 billion yen and improve earnings, officials of the steel maker said Tuesday. NATIONAL SECURITIES: Agrees to merger with Meiko Securities ----------------------------------------------------------- Dow Jones reports Japan's National Securities Co. and Meiko Securities Co. announced Wednesday they have agreed to merge. The joining of the two second-tier securities companies comes as many Japanese financial companies are forming alliances to cope with the "Big Bang" financial deregulation. Osaka-based Meiko Securities and Tokyo-based National Securities said they will merge April 1, 1999. Under the merger plan, one Meiko share will be allocated to two National shares. The merged company will be tentatively called Meiko National Securities. NIPPON STEEL: To buy subsidiary's cement business ------------------------------------------------- The Nihon Keizai newspaper reports Nippon Steel Chemical Co. will withdraw from its money-losing cement business and sell production facilities to its parent, Nippon Steel Corp., company sources said Tuesday. Nippon Steel Chemical will book losses from the sale of assets in the current fiscal year through March. Consequently, the company's net loss will likely widen to just over 4 billion yen from the 2.6 billion yen projected earlier. NOMURA SECURITIES: Moody's lowers ratings ----------------------------------------- United States rating agency Moody's Investor Service yesterday sliced its ratings on Japan's Nomura Securities, blaming the firm's heavy losses. Moody's cut Nomura's senior debt rating from A1 to A3, and warned the ratings were on review for a possible downgrade. The move was prompted by substantial losses and asset- quality problems in Nomura's international operations. Also, the severe earnings pressure in its domestic operations and by the weaknesses in its international business strategies were concerns of the rating agency. The agency cut Nomura's short-term ratings from prime-1 to prime-2. Moody's said the substantial losses reported in the company's US real-estate business and proprietary trading activities are indicative of Nomura's risk profile and vulnerability to adverse market conditions. SEIKO CORPORATION: Expects huge losses -------------------------------------- Japanese wristwatch maker Seiko Corp. is likely to report a net loss of 7 billion yen for the half-year ended yesterday, compared with a net profit of 2.3 billion yen in the same period last year, the Nihon Keizai newspaper reported, without citing sources. SUMITOMO CORPORATION: Predicts first half losses ------------------------------------------------ The Nihon Keizai newspaper reports Sumitomo Corp. and Marubeni Corp. both predict net losses for the first half ending Sept. 30 due to revaluation losses on holdings of bank and other stocks, officials from the companies said Tuesday. Neither of the major trading houses are expected to sell assets or take other measures to realize offsetting profits. Instead they are likely to book extraordinary losses to cover the write-downs. Sumitomo projects a 45 billion yen net loss, which compares with net profit of 14.5 billion yen in the same period a year earlier. The company estimates the market value of its stake in Sumitomo Trust & Banking Co. to be 10 billion yen below its book value based on the closing price Tuesday. It also expects appraisal losses on its holdings of Sumitomo Bank and Bank of Tokyo-Mitsubishi shares. TESCON COMPANY: Bounces Y115 million check ------------------------------------------ Bloomberg reports Tescon Co., a Japanese maker of equipment used to test semiconductors, said it bounced a check for 115 million yen after Fuji Bank Ltd. refused to roll over 400 million yen in loans. ========= K O R E A ========= DAESUNG COMPANY: Completes creditor reconciliation -------------------------------------------------- The Taechun District Court advertised in the Korean language Maeil Kyungje that the Daesung Company completed its creditor reconciliation procedure. The company's address is 1-14 Daehwa-dong, Daeduk-gu, Taechun and the president is Mr. Kim Chung-sun. DU-IN ELECTRONICS: Trading suspended ------------------------------------ According to the Korean language Maeil Kyungje's Business Brief section, trade of shares of Du-in Electronics Company were suspended until October 2, 1998 due to the company's recent bankruptcy. KIA MOTORS: Kia's third auction details to be set ------------------------------------------------- According to the Korea Times, creditors of Kia Motors Company and its sister bus and truck maker, Asia Motors Company, have decided to set the terms of a third auction of these companies and announce the winning bidder on October 19. A similar report in the Korea Herald stated that details of additional debt write-offs will be determined and disseminated to potential bidders by October 2. A Kia spokesperson said that the basic framework of the third auction will be the same as the previous two rounds, but that creditors would adopt a more flexible approach towards further debt write-offs. KISAN DEVELOPMENT: Insolvency notice ------------------------------------ The Seoul District Court advertised in the Korean language Maeil Kyungje that the Kisan Development Company is insolvent. The creditors have until October 24, 1998 to file their claims. The company's address is 13, 107-6 Namsung-dong, Sangju-shi and the president is Mr. Yi Woo- sup. LG GROUP: Wins 500 bln won British Telecom investment ----------------------------------------------------- Reuters reports South Korea on Thursday won a $390 million investment from British Telecommunications Plc, marking a significant stride in its efforts to lure foreign capital by selling off major corporate assets. BT jointly announced with LG Telecom Co (LGT), one of South Korea's five mobile telephone operators, that BT would acquire a 23.49 percent stake in LG Telecom for about 500 billion won within one month. BT will become the second-largest shareholder in LG after the LG Group, which will retain a 26.61 percent stake after the deal, which involves the issuance of new common shares. The announcement came amid growing pessimism over efforts by South Korean companies to sell assets to generate cash to finance restructuring projects and to make up for shortages created by weakening earnings margins. The LG Group, the fourth largest among South Korean business conglomerates in terms of assets, is also trying to sell off a controlling stake in LG Metals Corp. LG Metals is South Korea's only copper producer. SAMHYUP INDUSTRY: Trading suspended ----------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, trade of shares of Samhyup Industry Company were suspended until October 2, 1998 due to the company's recent bankruptcy. =============== M A L A Y S I A =============== CHOMELITA SDN BHD: Voluntary winding up --------------------------------------- The members of Chomelita Sdn Bhd on 25/9/98 resolved to wind-up the company voluntarily. Creditors of the company are requested to submit their claims before 29/10/98. COMMERCE ASSET-HOLDINGS BHD: Results announcement ------------------------------------------------- Commerce Asset-Holdings Bhd (listed on the KLSE) posted a pre-tax loss of RM78.2mil for the half year ended 30/6/98, compared to a pre-tax profit of RM287.8mil previously. The loss was attributed to its provisions for bad and doubtful debts amounting to RM486.8mil, from RM32.1mil previously. GOLDEN MARKS PRINTS & PACKS SDN BHD: Winding-up petition -------------------------------------------------------- Behn Meyer International Trading Sdn Bhd on 8/8/98 petitioned for the winding-up of Golden Marks Prints & Packs Sdn Bhd. The petition is directed to be heard on 11/11/98. RENONG BHD: Results announcement -------------------------------- Renong Bhd group (listed on the KLSE) hard hit by the financial crisis, reported a pre-tax loss of RM818mil for the year ended 30/6/98, compared to RM703mil previously. Group operating loss was RM272mil against a profit of RM46mil previously. The depreciation of the ringgit against the US dollar had resulted in an unrealised loss of RM384mil for the group. High domestic interest rates also strained its cashflow, leading to an increase in interest and other borrowing costs of RM153mil while the slowdown in infrastructure activity, its core business, had also cut earnings in its construction division. The group's net tangible asset backing per 50sen par value share was 96sen. SLDB MANAGEMENT SERVICES SDN BHD: Voluntary winding up ------------------------------------------------------ The members of SLDB Management Services Bhd resolved to wind-up the company voluntarily on 21/9/98. Creditors are requested to submit their claims before 21/10/98. STREET ICECREAM SDN BHD: Voluntary winding-up --------------------------------------------- The members of Street Icecream Sdn Bhd on 28/9/98 petitioned for the winding-up of Street Icecream Sdn Bhd. Creditors of the company are requested to submit their claims before 30/10/98. TEMPCON FASTENERS INDUSTRIES: Winding-up petition ------------------------------------------------- Hock Hua Bank Bhd on 24/8/98 petitioned for the winding-up of Tempcon Fasteners Industries (M) Sdn Bhd. The petition is directed to be heard on 13/11/98. VISAGE ENGINEERING SDN BHD: Winding-up petition ----------------------------------------------- Wing Tiek Holdings Bhd (listed on the KLSE) on 23/7/98 petitioned for the winding-up of Visage Engineering Sdn Bhd. The petition is directed to be heard on 27/11/98. ===================== P H I L I P P I N E S ===================== AYALA LAND: Issues shares to parent company ------------------------------------------- BusinessWorld reports real estate giant Ayala Land, Inc. (ALI) is issuing three billion Philippine pesos (PhP) worth of shares to its parent firm Ayala Corp. to preserve the conglomerate's holdings in ALI. In a disclsosure to the Securities and Exchange Commission (SEC), ALI said the move was prompted by the suspension of the tie-up talks between ALI and low-cost housing developer C&P Homes, Inc. To recall, Ayala sold holdings in its property arm in March worth $200 million to fund the share swap agreement being forged between ALI and C&P. Proceeds from the sale of its ALI shares would have been used to buy C&P shares held by C&P's parent firm Fine Properties, Inc. Since the deal failed to proceed as planned, ALI decided to issue 205.94 million ALI shares directly to its parent firm, thus boosting its holding in the property firm. The shares are priced at PhP14.57 a piece and will come from the unissued authorized capital stock of ALI. ================= S I N G A P O R E ================= AMARA HOLDINGS: Results announcement ------------------------------------ Singapore BusinessTimes reports Amara Holdings yesterday reported a 57.3 per cent fall in profits to $1.3 million for the half-year ended June 30. Revenue declined marginally by 0.8 per cent to $15.8 million. Earnings per share fell to 0.22 of a cent from 0.66 cent. Net tangible asset per share was 34.1 cents. The company said pre-tax profit fell mainly because of an operating loss from Amara Hotel Saigon, higher bank interest costs, and higher amortisation of preliminary and pre-operating expenses. FUJI OFFSET PLATES: Results announcement ---------------------------------------- Singapore BusinessTimes reports net earnings of Fuji Offset Plates Manufacturing Ltd fell 86 per cent from $1 million to $146,000 for the half year ended June 30. Turnover was $9.8 million, a 23 per cent drop from $12.8 million. Earnings per share based on existing issued share capital was 0.3 cents. Net tangible asset per share was 54.5 cents. The group said the depreciation of the regional currencies -- which adversely affected sales -- and foreign exchange losses due to ringgit depreciation contributed to the reduction in profits. GRP LIMITED: Results announcement --------------------------------- Singapore BusinessTimes reports GRP Ltd has posted a $2.8 million loss for the full year ended June 30, compared to net earnings of $1.2 million last year. Turnover fell 11.6 per cent to $28.7 million. Net tangible assets per share was 20.42 cents. Loss per share on a fully diluted basis was 3.13 cents. A gross dividend of one per cent was recommended. The group said operations were adversely affected by the cancellation of orders from Indonesia and the Philippines, foreign exchange losses in China and a $723,000 provision made for doubtful debts in Indonesia. HOTEL GRAND CENTRAL: Results announcement ----------------------------------------- Singapore BusinessTimes reports Hotel Grand Central saw net earnings dive 72 per cent to $769,000 for the latest half year ended June 30, 1998 with earnings per share eroded by $1.08 to 42 cents. Pre-tax profit fell 38 per cent to $6.2 million while income from associate companies plunged 89 per cent to $147,000 due to lower sales at the group's Malaysian associate hotels. Group turnover declined 14 per cent to $20.9 million. INNO-PACIFIC HOLDINGS: Results announcement ------------------------------------------- Singapore BusinessTimes reports trading and food group Inno-Pacific Holdings saw its interim net loss widen 19 per cent to $3 million for the half-year ended June 30, 1998. Turnover plunged 47 per cent to $5.1 million from $9.6 million. Net tangible asset halved to 10 cents while loss per share was 1.2 cents. IPC: Results announcement ------------------------- Singapore BusinessTimes reports troubled local personal computer maker IPC yesterday announced $22 million in net interim losses, which were taken to further depths by extraordinary charges of $198 million. As a result of the extraordinaries -- due to provisions for the group's exit from the PC and peripherals business -- bottomline losses for the six months ended June came to $221 million. In the previous interim, it had reported group net and attributable earnings of $18.8 million and $30 million respectively. The mainboard-listed company said that in line with its decision to wind down its PC, peripherals trading and distribution businesses, its UK subsidiary will be liquidated. Consequently, $170 million has been provided for the assets and receivables related to these businesses. The company said Price Waterhouse, appointed to restructure the group's debts and businesses, would forward its plans to IPC's creditors shortly. This should take place within the next two to three weeks. Despite the heavy provisions for its latest interim, IPC may be faced with more writedowns. In its latest annual report, auditors Ernst & Young had severely qualified the accounts of the company and raised questions on the value of several of its assets totalling $326 million, some of which is likely to have been included in its latest extraordinary figure. KIAN HO BEARINGS: Results announcement -------------------------------------- Singapore BusinessTimes reports Kian Ho Bearings saw its half-year profit nose-dive by 85 per cent, from $1.4 million in 1997 to $215,000 this year. Turnover fell 15 per cent from $29.6 million to $25.2 million because of slower sales in the face of the regional slowdown, said the company. Earnings per share was just 0.14 of a cent compared to 1.1 cents last year. Net tangible assets fell from 29.9 cents to 24.5 cents. The company expects the crisis to continue to affect its performance in the second half-year. LIANG HUAT ALUMINIUM: Results announcement ------------------------------------------ Singapore BusinessTimes reports Liang Huat Aluminium yesterday announced a $4.3 million loss for the six months ended June 30. It had a profit of $2.3 million for the previous half year. Turnover rose 48 per cent to $74.7 million. Loss per share based on existing issued share capital was 1.98 cents. Net tangible assets per share was 30.36 cents. Provisions for bad debts and for the diminution in value of development properties, along with higher interest, depreciation and amortisation expenses resulted in a pre-tax loss of $3.8 million, the group said. LIM KAH NGAM: Results announcement ---------------------------------- Singapore BusinessTimes reports construction and property group Lim Kah Ngam tumbled into the red with $89.5 million in net losses at half time, against profits of $51,000 in the first half of last year. Booked as an extraordinary loss was a $9.8 million provision for the decline in value of its 45 per cent share in Equatorial Hotel, which brings total losses after extraordinaries to almost $99.2 million. The group entered a joint-venture to redevelop the hotel with NatSteel's property arm last year after a public tender failed to produce bids within expectations. Turnover in the first half dropped 53 per cent to $43.3 million, due to a drop in construction work and weaker property sales. NATIONAL KAP: Results announcement ---------------------------------- Singapore BusinessTimes reports National Kap remained in the red for the half-year to June 30, 1998, with a net loss of $1.7 million, due to the slowdown in the global electronics industry. Turnover for the electronic parts manufacturer more than quadrupled to $5.8 million due to the inclusion of US subsidiary ASJ Components Inc. ASJ was previously an associate company of the group. Loss per share came to nine cents, a dip from 10 cents previously. NOEL GIFTS: Results announcement -------------------------------- Singapore BusinessTimes reports Noel Gifts has been saddled with a net loss of $1.65 million for the full year ended June 30, far higher than the loss of $230,000 it racked up in its previous financial year. Turnover for the period dipped 1.3 per cent to $20.62 million, while its operating profit shrank 46.4 per cent to $575,000. SHOWPLA ASIA: Results announcement ---------------------------------- Singapore BusinessTimes reports cash-strapped Showpla Asia, whose parent company is under court protection, yesterday posted a $16.2 million interim net loss, in sharp contrast to its $460,000 net profit a year ago. The mainboard-listed plastic components maker yesterday also announced a new management team and an ongoing group restructuring, which includes closing a company and possibly selling another. Showpla said it would close Showplatronics (M) Sdn Bhd, a company with operations in Johor. Showpla's $16 million loss for the half-year ended June came despite a 9 per cent rise in turnover to $66.5 million. This was due to foreign exchange losses from Indonesia and losses from Brazilian operations. The company said the results do not include provisions for a $20 million debt owing by Showa Plastics as the amount recoverable cannot be determined yet. TYE SOON: Results announcement ------------------------------ Singapore BusinessTimes reports auto parts distributor Tye Soon has posted a loss of $3.4 million for the six months ended June 30. Turnover dropped 38 per cent to $40.4 million, with turnover for the group's automotive components business dipping by some 33 per cent while turnover for its non-automotive business declined by about 48 per cent. The group also said it set aside further provision of about $650,000 for its exposure to the region. =============== T H A I L A N D =============== DOK-YA: Potential investors vy for book chain --------------------------------------------- The Bangkok Post reports Telecoms tycoon Thaksin Shinawatra, along with Japanese and Singaporean investors, are vying to take a majority stake in Dok-ya book chain. In order to solve its liquidity problem, Samakkhisan Plc, the operator of Dok-ya, has decided to sell a majority stake, managing director Narongsak Tantipinichwong said. The company has debts of 500 million baht, 400 million of which is owed to some of the closed financial institutions. Aside from Mr Thaksin, the Japan Investment Corporation is said to be interested in the company, as are some unnamed Singaporeans. The company recently decided to double its registered capital to 300 million baht by issuing 15 million shares to be sold to the new partner through a private placement. Meanwhile, Japan Investment Corp wants the company to submit a debt-restructuring plan. Dok-ya's debts to the defunct finance companies are among the corporate loans to be auctioned by the Financial Sector Restructuring Authority in December. After the auction, Dok-ya will hold negotiations with the new creditors to restructure its debts in the hope of winning better loan terms. Last year the book chain generated 900 million baht in revenue. However, it expects sales to fall to between 700 million and 800 million baht this year. Once the company's financial problems are resolved next year, revenue is expected to jump to between 1.2 billion baht and 1.5 billion baht, Mr Narongsak said. NORTH STAR PCL: Results announcement ------------------------------------ North Star PCL reports results for the quarter ending March 31, 1998 as a net loss of Bt259 million, which compares to a net profit of Bt5.7 million for the corresponding 1997 period. SIAM CEMENT: To restructure business lines ------------------------------------------ Siam Cement Public Company Limited has notified the SET that intends to restructure the roofing and concrete products business line by establishing a new wholly-owned company entitled "Cementhai Roofing and Concrete Products Co., Ltd." to serve as a holding company for companies in this line of business. Siam Cement also intends to restructure the businesses of medium- and small-sized subsidiaries, associated companies, as well as companies in which Siam Cement Plc. Holds shares, all of which do not have business affiliation among them to enable formation of any particular line of business. In this regard, Siam Cement Plc. will establish three new, wholly-owned companies to hold equity in these companies. Siam Cement says these changes will bring about more efficiency and greater management flexibility through a clearer shareholding structure, enabling more timely responses to changing business and competitive conditions. THAI T&T: Thai Telephone suspending payments on most loans ---------------------------------------------------------- The Asian Wall Street Journal reported that Thai Telephone and Telecommunications PCL is suspending most payments on outstanding loans worth more than 470 million baht ($12.1 million), while it is seeking a creditor agreement on the restructuring of its debts. Thai Telephone and Telecommunications (TT&T) will suspend repayment of principle and some interest on $418 million in foreign loans and 21 billion baht in domestic loans. TT&T has also just named Chase Manhattan (S.E.A) Ltd. as its acting financial advisor, and is negotiating with about 50 of its creditors for debt restructuring. Creditors have been informed of this suspension, although TT&T officials stated that there has yet been no response from the creditors. The TT&T senior finance manager has also indicated that the company's cash flow is such that this suspension is unavoidable. Although TT&T suspended payment on interest on short-term loans, it is still paying interest on more than $270 million in long-term loans, or loans with maturities greater than one year. The company hopes to have a rough plan to deal with its debts in two months, and will seek written approval from creditors of its repayment plans by early next year. TT&T holds a government concession to install and operate 1.5 million new phone lines outside of Bangkok, and has complete the installation of 1.1 million of these lines. However, due to the Thai economic recession, monthly new phone subscription rates have fallen by 95 percent and income per line has fallen 20 percent. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Princeton, NJ USA, and Beard Group, Inc., Washington, DC USA. Debra Brennan and Lexy Mueller, Editors. Copyright 1998. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $875 per month delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *