---

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      

      Tuesday, October 13, 1998, Vol. 1, No. 163

                    Headlines


* C H I N A   &   H O N G   K O N G *

ARTBON DEVELOPMENT LIMITED: Winding-up order
CHINA NONFERROUS  METALS: To delay payment of loan
COMPUTER 88 LIMITED: Winding-up petition
DELUXE FASHIONS LIMITED: Winding-up order
ETERNAL ENGINEERING LIMITED: Winding-up order

ETERNAL GLORY INDUSTRIAL LIMITED: Winding-up petition
EVEN BETTER APPAREL LIMITED: Notice of first meetings
FAIRLINK ENGINEERING LIMITED: Winding-up petition
FULLSON SHIPPING LIMITED: Winding-up order
GETEK INTERNATIONAL LIMITED: Winding-up order

GOLDEN HARVEST ENTERTAINMENT: Reveals net loss
GRAND VICTORY INDUSTRIAL: Voluntary winding up
GUANGDONG INTERNATIONAL: Gitic may owe more than $19b
HONEST BLUE PRODUCTS COMPANY LIMITED: Winding-up petition
HOPEWELL HOLDINGS: Thai government to choose options

IDEAL PACIFIC: Investigation reveals directors' role
IN-ART INTERIORS LIMITED: Winding-up order
KAM LI MAN GARMENT MANUFACTORY: Winding-up order
LUEN YING WASHING & DYEING: Notice of first meetings
MASTER ADVERTISING LIMITED: Winding-up order

METAL WALL COMPANY LIMITED: Winding-up order
PACIFIC ENTERPRISES(HOLDINGS) LIMITED: Winding-up petition
PIONEER CHEER INTERNATIONAL LIMITED: Winding-up petition
RICHWAY (HK) LIMITED: Winding-up order
RHINE HOLDINGS LIMITED: Notice of first meetings

SEVEN OCEAN TOURS LIMITED: Winding-up petition
SHANTOU OCEAN ENTERPRISES: Battle over gas storage facility
SURPLUS LEVEL LIMITED: Winding-up order
TAI LAP COMPANY LIMITED: Winding-up order
TINDEX PROPERTIES LIMITED: Winding-up order

TOPWELL INSURANCE AGENCY: Winding-up order
TYPESETTING LTD: Notice of intended preferential payment
UNITED AERO-SUPPLIES SYSTEM: Winding-up order
VINO & OLIO LIMITED: Notice to creditors
WAI LUNG HONG COMPANY LIMITED: Winding-up petition

WAH TAI CONTRACTORS LIMITED: Winding-up petition


* J A P A N *

DAIEI: Daiei weighs options to speed debt clearing
IZUMISANO COSMOPOLIS: Developer seeks liquidation
LONG TERM CREDIT: Possible Y3 trillion in bad loans
NEC CORP: Packard Bell NEC to trim 1,000 jobs
NICHIBOSHIN LIMITED: Fund supplier announces deficit

NISSAN DIESEL: Expects Y2.5bn loss
ORIENT CORP: To wind up 9 finance subsidiaries in 5 years
SANWA BANK: To sell Chicago-based leasing subsidiary
SHARP CORP: Issues warning of worst performance ever


* K O R E A *

HANGUK STEEL CASTING: Completes creditor reconciliation
KISAN ELECTRONICS: KOSDAK suspends Kisan Electronics' trade
KUKJE PRECISION INDUSTRY: Files for bankruptcy
TAEMYONG CONSTRUCTION: Starts creditor reconciliation
TAEMYONG LEASURE INDUSTRY: Starts creditor reconciliation


* M A L A Y S I A *

AITOZ SDN BHD: Winding-up petition
AYER HITAM TIN DREDGING (M) BHD: Results - 30/6/98
BEST WORLD LAND BHD: Results - 30/6/98
CN ASIA CORPORATION BHD: Results - 30/6/98
CHASE PERDANA BHD: Results - 30/6/98

COMMERCE ASSET-HOLDING BHD: Results - 30/6/98
CONSTRUCTION AND SUPPLIES HOUSE BHD: Results - 30/6/98
CYGAL BHD: Results - 30/6/98
DIJAYA ENTERPRISE BHD: Results - 30/6/98
EDEN ENTERPRISES (M) BHD: Results - 30/6/98

HONAN PLANTATIONS SDN BHD: Voluntary winding-up
NHSG MANAGEMENT COMPANY SDN BHD: Winding-up petition
RENONG: Bonds hoped to ease debt burden
RENONG BHD: Move to curb cheap sale to aliens
RENONG: Renong aid may spur new bailouts

RIA SUKAHATI HOLIDAY SDN BHD: Winding-up petition


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

PHILIPPINE AIRLINES: PAL in need of $1.6b for take-off
PHILIPPINE AIRLINES: PAL sets sights on foreign skies


* T H A I L A N D *

BANPU PCL: Warrant trading to be suspended and delisted
DUSIT THANI GROUP: To restructure by selling Princess
PADAENG INDUSTRY: Announces capital increase
TELECOM HOLDINGS: Considers selling stake in UBC


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

ARTBON DEVELOPMENT LIMITED: Winding-up order
--------------------------------------------
A winding-up order notice is hereby given that Artbon
Development Limited is undergoing a companies winding-up
proceedings (No 506 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was July 28, 1998.    


CHINA NONFERROUS  METALS: To delay payment of loan
--------------------------------------------------
Red Chip Onfem Holdings has agreed to delay until December
9 the repayment by its parent company of a $20 million
loan. Parent China Nonferrous Metals Holdings (Hong Kong)
would pay an interest equivalent to 1% over prime on loan.


COMPUTER 88 LIMITED: Winding-up petition
----------------------------------------
Notice is hereby given that a petition for the winding-up
of Computer 88 Limited by the High Court of Hong Kong was,
on the 23rd day of September, 1998, presented to the said
Court by Chiu Ngai Chi and the petition is heard on 29th
day of October, 1998. Other creditors who support or oppose
the making of the order may appear at the time of the
hearing.  


DELUXE FASHIONS LIMITED: Winding-up order
-----------------------------------------
A winding-up order notice is hereby given that Deluxe
Fashions Limited is undergoing a companies winding-up
proceedings (No 570 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was August 19, 1998.    


ETERNAL ENGINEERING LIMITED: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that Eternal
Engineering Limited is undergoing a companies winding-up
proceedings (No 579 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was August 21, 1998.    


ETERNAL GLORY INDUSTRIAL LIMITED: Winding-up petition
-----------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Eternal Glory Industrial Limited by the High Court of
Hong Kong was, on the 18th day of September, 1998,
presented to the said Court by Championship Industrial
Limited 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.  


EVEN BETTER APPAREL LIMITED: Notice of first meetings
-----------------------------------------------------
In the High Court of Hong Kong Special Administration
Region Court of First Instance, companies winding-up
proceeding (No.455 of 1998), a notice of first meetings is
hereby given that creditors and contributors of Even Better
Apparel Limited will meet on October 16, 1998 at the
Official Receiver's Office at 10/F, Queensway Government
Offices, 66 Queensway, Hong Kong.


FAIRLINK ENGINEERING LIMITED: Winding-up petition
-------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Fairlink Engineering Limited by the High Court of Hong
Kong was, on the 11th day of September, 1998, presented to
the said Court by Wui Yip Engineering Company and the
petition is heard on 21st of October, 1998. Other creditor
who support or oppose the making of the order may appear at
the time of the hearing.  


FULLSON SHIPPING LIMITED: Winding-up order
------------------------------------------
A winding-up order notice is hereby given that Fullson
Shipping Limited is undergoing a companies winding-up
proceedings (No 516 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was July 30, 1998.    


GETEK INTERNATIONAL LIMITED: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that GETEK
International Limited is undergoing a companies winding-up
proceedings (No 586 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was August 24, 1998.    


GOLDEN HARVEST ENTERTAINMENT: Reveals net loss
----------------------------------------------
Golden Harvest Entertainment (Holdings), a Hong Kong film
distribution firm, has blamed foreign exchange losses and
provisions for doubtful debts for pushing it into red, as
it revealed a net loss of $90.49 million in the six months
to June 30. The loss was in contrast to a $6.79 million
attributable profit in the same period last year.

Golden Harvest incurred an exceptional loss of $89.2
million and said its share of losses from associates was
$5.5 million. The company said the exceptional debts
consisted of a $45.33 million forex loss and $43.87 million
in provision for bad and doubtful debt. The doubtful debt
mainly represented advances to third parties for securing
film distribution rights. Turnover fell 34% to $222.9
million while operating profit fell to $9.03 million, down
from $11.5 million the year before.


GRAND VICTORY INDUSTRIAL: Voluntary winding up
----------------------------------------------
The members of Grand Victory Industrial Limited passed a
resolution that the company be wound up voluntarily and
that Mr Chan Chung Wah, Clement of 5/F., Heng Shan Centre,
145 Queen's Road East, Wanchai, Hong Kong be and is hereby
appointed as Liquidator of the Company for the purposes of
such winding up and that he is hereby authorized to divide
any part of the assets of the Company as he will think fit
among the members of the Company in species or kind.


GUANGDONG INTERNATIONAL: Gitic may owe more than $19b
-----------------------------------------------------
According to the Hong Kong Standard, one of the creditors
of the Guangdong International Trust & Investment
yesterday said the group's liabilities could go beyond
US$2.5 billion, or more than double an earlier estimate of
only US$1 billion.

The creditor estimated the group's assets at some US$4.5
billion, but its debts and other obligations are placed at
some US$6 billion or even more.

Another banker claimed foreign banks could incur a loss of
as much as US$500 million, although other bankers say it
might take at least three months too assess the full impact
of Gitic's collapse on its creditors. The chief executive
of one of Gitic's creditors told the Hong Kong Standard
that some creditors of Gitic and its subsidiaries are
calling in their loans, the first step before the group is
declared in default of its loan repayments.

He said creditors are concerned with uncertainties on the
extent of Gitic debts that might be honored by Chinese
authorities.

A marker analyst warned that some of Gitic's creditors
might consider taking legal action if they fail to recover
portions of their exposure extended in good faith to the
Gitic Group. However, creditor banks who would exercise
this option would probably face an uphill battle.

According to the SCMP, Hong Kong regulators were looking
into the possible impact on local banks and listed
companies of the closure this week of Gitic.

Standard & Poor's director Lincoln Chan said the agency
suspected the government's support for Itics was not  
promised when they first raised funds on overseas markets,
after looking into the initial details regarding the
procedures to deal with Gitic's creditors released by
mainland authorities.


HONEST BLUE PRODUCTS COMPANY LIMITED: Winding-up petition
---------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Honest Blue Products Company Limited by the High Court
of Hong Kong was, on the 16th day of September, 1998,
presented to the said Court by Lam Shuen tai 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.  


HOPEWELL HOLDINGS: Thai government to choose options
----------------------------------------------------
Thailand's cabinet will soon be asked to choose one of the
four options for reviving the Hopewell road and rail
project that was cancelled last year, the Bangkok Post
reported yesterday.

The contract to build the US$3.2 billion elevated road and
rail project was signed by the Thai government and Hong
Kong Hopewell in 1990. The government canceled the contract
last year because Hopewell had completed less than 20% of
its construction. The project was needed to help solve
Bangkok' massive traffic jams and provide a vital commuting
link to the site of the Asian Games, which Bangkok will
host in December.

The Post said the Transport and Communications Ministry
would forward four options to restart the project.


IDEAL PACIFIC: Investigation reveals directors' role
----------------------------------------------------
Ideal Pacific Holdings said an internal investigation had
implicated one or more of the company's former directors in
financial irregularities that resulted losses to the
company. The company's directors said legal actions had
been taken against Ip Man-man and former vice-chairman Fu
Wai-hung for their possible involvement in the scam. The
whereabouts of Ip Man-man were still unknown while Fu Wai-
hung, out on police ball, was required by the Commercial
Crime Bureau to assist its investigation, executive
director Tsoi Wai-kwong said.

The company has completed its evaluation of the possible
impact of the irregularities on the company's accounting
records. It said in a statement the irregular transactions
were principally caused by the lack of segregation of
duties and the absence of proper approval procedures on the
company's investment, capital expenditure, credit control,
expense control as well as cash management. But it assured
investors it had uncovered and disclosed all the
transactions in its annual report dated July 27 and its
announcement on July 30.

The impact of such financial irregularities has been fully
reflected in the annual report and the company believes the
provision of about $310 million is sufficient to cover any
potential adverse impact from such irregularities.    


IN-ART INTERIORS LIMITED: Winding-up order
------------------------------------------
A winding-up order notice is hereby given that In-Art
Interiors Limited is undergoing a companies winding-up
proceedings (No 577 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was August 21, 1998.    


KAM LI MAN GARMENT MANUFACTORY: Winding-up order
------------------------------------------------
A winding-up order notice is hereby given that Kam Li Man
Garment Manufactory Limited is undergoing a companies
winding-up proceedings (No 587 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on September 23, 1998.  
The date of presentation of petition was August 24, 1998.    


LUEN YING WASHING & DYEING: Notice of first meetings
----------------------------------------------------
A meeting of creditors of Luen Ying Washing & Dyeing
Factory Limited formerly known as Easy Forward Limited will
be held at 2:30 pm on Oct 19, to be followed at 3:30 pm by
a meeting of the creditors at the Official Receiver's
office, 10th Floor, Queensway Government Offices, 66
Queensway, Hong Kong.


MASTER ADVERTISING LIMITED: Winding-up order
--------------------------------------------
A winding-up order notice is hereby given that Master
Advertising Limited is undergoing a companies winding-up
proceedings (No 566 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was August 18, 1998.    


METAL WALL COMPANY LIMITED: Winding-up order
--------------------------------------------
A winding-up order notice is hereby given that Metal Wall
Company Limited is undergoing a companies winding-up
proceedings (No 585 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was August 24, 1998.    


PACIFIC ENTERPRISES(HOLDINGS) LIMITED: Winding-up petition
----------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Pacific Enterprises (Holdings) Limited by the High Court
of Hong Kong was, on the 15th day of September, 1998,
presented to the said Court by Cheer City Properties
Limited 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.  


PIONEER CHEER INTERNATIONAL LIMITED: Winding-up petition
--------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Pioneer Cheer International Limited by the High Court of
Hong Kong was, on the 30th day of September, 1998,
presented to the said Court by Lai Chi Ming and the
petition is heard on 4th day of November, 1998. Other
creditor who support or oppose the making of the order may
appear at the time of the hearing.  


RICHWAY (HK) LIMITED: Winding-up order
--------------------------------------
A winding-up order notice is hereby given that Richway (HK)
Limited is undergoing a companies winding-up proceedings
(No 573 of 1998) in the High Court of the Hong Kong Special
Administrative Region court of first instance. The date of
order is on September 23, 1998. The date of presentation of
petition was August 20, 1998.    


RHINE HOLDINGS LIMITED: Notice of first meetings
------------------------------------------------
In the High Court of Hong Kong Special Administration
Region Court of First Instance, companies winding-up
proceeding (No.511 of 1998), a notice of first meetings is
hereby given that creditors and contributors of Rhine
Holdings Limited will meet on October 22, 1998 at the
Official Receiver's Office at 10/F, Queensway Government
Offices, 66 Queensway, Hong Kong.


SEVEN OCEAN TOURS LIMITED: Winding-up petition
----------------------------------------------
Notice is hereby given that a petition for the winding-up
of Seven Ocean Tours Limited by the High Court of Hong Kong
was, on the 9th day of September, 1998, presented to the
said Court by Tachit Investment Company Limited 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.  


SHANTOU OCEAN ENTERPRISES: Battle over gas storage facility
-----------------------------------------------------------
Caltex China and Shantou Ocean Enterprises -- partners in
building the largest liquefied petroleum gas (LPG) storage
facility in the mainland -- are set to enter a US$2.18
million legal battle. Caltex claims Shantou Ocean
Enterprises (Group) Co was indebted to the tune of $2.18
million, the price of LPG supplied to Shantou between
February and May this year, a High Court writ said.
Contracts signed by the pair provided that payment to
Caltex would be made in US dollars within 45 days of
delivery of the LPG. Shantau Ocean Enterprises (Group) Fuel
Gas Co admitted liabilities for the sum on April 13, the
writ said. Caltex is claiming interest and costs.     


SURPLUS LEVEL LIMITED: Winding-up order
---------------------------------------
A winding-up order notice is hereby given that Surplus
Level Limited is undergoing a companies winding-up
proceedings (No 568 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was August 18, 1998.    


TAI LAP COMPANY LIMITED: Winding-up order
-----------------------------------------
A winding-up order notice is hereby given that Tai Lap
Company Limited is undergoing a companies winding-up
proceedings (No 425 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was September 13, 1998.    


TINDEX PROPERTIES LIMITED: Winding-up order
-------------------------------------------
A winding-up order notice is hereby given that Tindex
Properties Limited is undergoing a companies winding-up
proceedings (No 485 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on September 23, 1998. The date of
presentation of petition was July 18, 1998.    


TOPWELL INSURANCE AGENCY: Winding-up order
------------------------------------------
A winding-up order notice is hereby given that Topwell
Insurance Agency Company Limited is undergoing a companies
winding-up proceedings (No 569 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on September 23, 1998.  
The date of presentation of petition was August 19, 1998.    


TYPESETTING LTD: Notice of intended preferential payment
--------------------------------------------------------
Typesetting Limited has made a notice of intended
preferential payment. The registered office and
liquidator's address is 10th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong and the last date of
receiving proofs is October 24.


UNITED AERO-SUPPLIES SYSTEM: Winding-up order
---------------------------------------------
A winding-up order notice is hereby given that United Aero-
Supplies System of China Limited is undergoing a companies
winding-up proceedings (No 573 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on September 23, 1998.  
The date of presentation of petition was August 24, 1998.    


VINO & OLIO LIMITED: Notice to creditors
----------------------------------------
The creditors of Vino & Olio Limited, which is being
voluntarily wound up, are required on or before Nov 9 to
send in their names, addresses and particulars of their
debts or claims to the Liquidators of the said company,
Chan Wai Dune, 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.


WAI LUNG HONG COMPANY LIMITED: Winding-up petition
--------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Wai Lung Hong Company Limited by the High Court of Hong
Kong was, on the 16th day of September, 1998, presented to
the said Court by Golden Resources Development Company 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.  


WAH TAI CONTRACTORS LIMITED: Winding-up petition
------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Wah Tai Contractors Limited by the High Court of Hong
Kong was, on the 30th day of September, 1998, presented to
the said Court by Ng Yuen Man and the petition is heard on
4th day of November, 1998. Other creditors who support or
oppose the making of the order may appear at the time of
the hearing.  


=========
J A P A N  
=========

DAIEI: Daiei weighs options to speed debt clearing
--------------------------------------------------
Japan's retail conglomerate Daiei says it plans to boost
efforts to restructure and sell properties to speed the
clear-up of debts worth 2.6 trillion yen.

Kenji Mizuno, manager of Daiei's finance planning office,
said Daiei was reviewing revisions to its five-year debt
cutting plan unveiled in December, under which Daiei aimed
to cut debts by one trillion yen by February 2002. He said
Daiei would raise its 260 billion yen target for selling
properties, without specifying a new target. He said
possible targets for sale include the Ala Moana Shopping
Centre in Hawaii and two large buildings in central Tokyo.
The Hawaiian property could be worth about US$1 billion and
is set for either outright sale or securitisation, but no
conclusion has been reached. He added that Daiei was
consulting with Goldman Sachs, Merrill Lynch and other
financial firms on the matter.

Analysts said Daiei was facing an uphill task in clearing
debts created after its aggressive expansion during Japan's
late 1980s bubble era of inflated asset prices as the
nation's retail sector was suffering from stagnant sales
and increased competition under deregulation.

Daiei fell into the red last business year for the first
time ever on a prolonged economic slump that sapped
consumer appetite for goods and on losses from group
restructuring.

Daiei is due to announce interim results next Wednesday and
Mr Mizuno said it would manage to post an operating profit
of about six billion yen in the first half of 1997/98.

Fears that Daiei might not be able to achieve the debt-
cutting target was fuelled after affiliate Daiei Photo
Enterprise made a poor debut on the over-the-counter market
in August amid a prolonged Tokyo stock slump. Analysts said
the firm's debt-cutting plan relies heavily on the listing
of wholly owned convenience store chain operator Lawson in
2000 when it must redeem vast corporate bonds.

Daiei has so far closed 18 of its unprofitable stores since
the last business year, in line with its target of closing
50 such stores over a three-year period.


IZUMISANO COSMOPOLIS: Developer seeks liquidation
-------------------------------------------------
According to the Hong Kong Standard, semi-government
Japanese developer Izumisano Cosmopolis has filed for
liquidation under Japan's bankruptcy laws with 60.7 billion
yen in debt, private credit-research firm Teikoku Databank
said yesterday.

It was set up in 1987 to develop a research and development
park for corporations in Osaka prefecture. Major
shareholders include the Osaka prefectural government, the
local Izumisano municipal government, construction firms
and financial institutions, such as Daiwa Bank, Sanwa
Bank and Sumitomo Bank, Teikoku Databank said. Construction
companies Taisei and Obayashi each held 12 per cent in the
company, while JDC and Mitsubishi Construction each held 5
per cent, it said. The four builders had extended loan
guarantees worth 20 billion yen to the failed developer.


LONG TERM CREDIT: Possible Y3 trillion in bad loans
---------------------------------------------------
Bloomberg cites a Yomiuri newspaper report that troubled
Long-Term Credit Bank of Japan Ltd., Japan's 10th-largest
bank, had more than 3 trillion yen in "problem loans" as of
June, citing unnamed sources. The Financial Supervisory
Agency and prosecutors are considering filing criminal
charges against the bank's board members. Prosecutors will
look into why the bank took on an increasing amount of bad
loans.


NEC CORP: Packard Bell NEC to trim 1,000 jobs
---------------------------------------------
Personal computer maker Packard Bell NEC said it would cut
its US workforce by up to 1000 jobs, or as much as 20% by
the end of the year to increase efficiency and trim costs.
The Sacramento-based company, which is majority owned by
Japan's NEC said between 750 and 1000 positions would be
cut in the United States in all areas of company
operations.


NICHIBOSHIN LIMITED: Fund supplier announces deficit
----------------------------------------------------
Nichiboshin Ltd., a financially ailing nonbank fund
supplier, said Friday it may fall into a capital deficit in
fiscal 1998, which ends next March, as it will increase
loan-loss reserves for outstanding loans in arrears for
more than three months. The deficit will be eliminated in
fiscal 1999 if creditor financial institutions accept
Nichiboshin's request for giving up their claims on loans  
to it, the Tokyo-based company said.


NISSAN DIESEL: Expects Y2.5bn loss
----------------------------------
According to the Financial Times, truck maker Nissan Diesel
expects to post heavy losses for the year to next March
because of weak demand. The company, which has been in
talks with Daimler-Benz about the German group possible
taking a controlling stake, forecast a pre-tax loss of
Y13bn, compared with a March estimate of a Y2.5bn loss.
Nissan Diesel posted a Y1.1bn loss in 1997-98.

The company pledged further restructuring including
reducing its workforce of 5,200 by almost a quarter to
4,000 by the end of March 2001. Analysts, however,
expressed doubt that these cuts would be enough to return
the company to profitability. They say the outlook for the
truck market next year is even bleaker than this year.


ORIENT CORP: To wind up 9 finance subsidiaries in 5 years
---------------------------------------------------------
The Nihon Keizai newspaper reports Orient Corp. will
liquidate two affiliated finance firms by the end of the
year and seven more subsidiaries within three to five
years, company officials said Friday. The major consumer
credit company, which had 2.7 trillion yen in borrowing as
of March, will speed up restructuring as bank lending is
becoming increasingly difficult and a rating agency lowered
its long-term debt to speculative levels.

President Hiroshi Arai said the company will close
subsidiaries which are making a loss and others that have
achieved their objectives. The two affiliates scheduled for
dissolution this year are Orifund International Pty, a
resort condominium sales company in Australia, and Nippon
Tamagoken, a gift voucher firm.

Orient had a combined 640 billion yen in loans to the
remaining seven subsidiaries as of the end of March, most
of which appear to have turned sour. The figure was down 39
billion yen from a year earlier, including 20.7 billion yen
the company wrote off. The firm earlier planned to reduce
bad loans by 250 billion yen in three years, but will raise
this to 300 billion yen.


SANWA BANK: To sell Chicago-based leasing subsidiary
----------------------------------------------------
Sanwa Bank plans to sell its US-based leasing subsidiary to
a US or European investment bank. Sanwa is seeking about
$900 million for the mid-sized business, Sanwa Business
Credit Corporation. The bank bought the leasing business
from US bank Continental Illinois for $55 million in 1984.


SHARP CORP: Issues warning of worst performance ever
----------------------------------------------------
Electronics group Sharp Corporation is warning that it
expects to issue its worst-ever earnings report for the
half-year ending September 30. The company blamed lower
semiconductor and liquid crystal display prices.
Nevertheless, the company has been transferring people from
semiconductor manufacturing to more promising LCD
production, as the demand for LCDs is exceeding the supply.
This has helped the company avoid layoffs in spite of lower
profits.


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

HANGUK STEEL CASTING: Completes creditor reconciliation
-------------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Hanguk Steel Casting Company completed
its creditor reconciliation procedure.


KISAN ELECTRONICS: KOSDAK suspends Kisan Electronics' trade
-----------------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Korea Securities Dealers Automated
Quotation (KOSDAK) system has suspended until October 12,
1998 the trade of Kisan Electronics Company, a
multimedia/computer accessories maker.


KUKJE PRECISION INDUSTRY: Files for bankruptcy
----------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Kukje Precision Industry Company went
bankrupt.


TAEMYONG CONSTRUCTION: Starts creditor reconciliation
-----------------------------------------------------
The Korean language Maeil Kyungje reports that on October
9, 1998 the Chunchon District Court has approved the
Taemyong Construction Company's application for creditor
reconciliation.


TAEMYONG LEASURE INDUSTRY: Starts creditor reconciliation
---------------------------------------------------------
The Korean language Maeil Kyungje reports that on October
9, 1998 the Chunchon District Court has approved the
Taemyong Leasure Industry Company's application for
creditor reconciliation.


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

AITOZ SDN BHD: Winding-up petition
----------------------------------
S.F. Marine & Industrial Services (M) Sdn Bhd on 29/7/98
petitioned for the winding-up of Aitoz Sdn Bhd. The
petition is directed to be heard on 13/11/98.


AYER HITAM TIN DREDGING (M) BHD: Results - 30/6/98
--------------------------------------------------
Ayer Hitam Tin Dredging (M) Bhd (listed on the KLSE) posted
an increase in pre-tax loss of RM22.58mil for the year
ended 30/6/98, compared to a pre-tax loss of RM4.38mil
previously. Loss per share also rose from 8sen to 37sen
during the period.


BEST WORLD LAND BHD: Results - 30/6/98
--------------------------------------
Best World Land Bhd (listed on the KLSE) posted a post-tax
loss of RM257.909mil for the year ended 30/6/98, compared
to a post-tax loss of RM15.96mil previously. Loss per share
rose from 0.11sen to 173.0sen during the same period.


CN ASIA CORPORATION BHD: Results - 30/6/98
------------------------------------------
CN Asia Corporation Bhd (listed on the KLSE) posted a group
pre-tax loss of RM1.97mil for the half year ended 30/6/98,
compared to a pre-tax profit of RM1.75mil previously. EPS
fell from 17.1sen to a loss per share of 11sen.


CHASE PERDANA BHD: Results - 30/6/98
------------------------------------
Chase Perdana Bhd (listed on the KLSE) posted a group pre-
tax loss of RM30.13mil for the half year ended 30/6/98,
compared to a pre-tax profit of RM13.52mil. EPS fell from
20sen to a loss per share of 64.8sen


COMMERCE ASSET-HOLDING BHD: Results - 30/6/98
---------------------------------------------
Commerce Asset-Holding Bhd (involved in financial services
and listed on the KLSE)posted a post-tax loss of
RM89.643mil for the half year ended 30/6/98 compared to a
post-tax profit of RM195.837mil previously. EPS fell from
25.6sen to a loss per share of 6.6sen during the same
period.


CONSTRUCTION AND SUPPLIES HOUSE BHD: Results - 30/6/98
------------------------------------------------------
Construction And Supplies House Bhd (listed on the KLSE)
posted a group pre-tax loss of RM8.31mil for the half year
ended 30/6/98, compared to a pre-tax loss of RM2.87mil
previously. Loss per share rose from 1.4sen to 4.6sen
during the same period.


CYGAL BHD: Results - 30/6/98
----------------------------
Cygal Bhd (listed on the KLSE) posted a post-tax loss of
RM84.623mil for the half year ended 30/6/98, compared to a
post-tax profit of RM14.937mil previously. EPS dropped from
RM0.30 toRM1.76.


DIJAYA ENTERPRISE BHD: Results - 30/6/98
----------------------------------------
Dijaya Enterprise Bhd (listed on the KLSE) posted a post-
tax loss of RM29.939mil for the year ended 30/6/98,
compared to a post-tax profit of RM5.956mil previously.
EPS fell from 9.1sen to 42.43sen during the same period.


EDEN ENTERPRISES (M) BHD: Results - 30/6/98
-------------------------------------------
Eden Enterprises (M) Bhd (listed on the KLSE) posted a pre-
tax loss of RM14.33mil for the half year ended 30/6/98,
compared to a pre-tax profit of RM5.90mil previously. EPS
dropped from 9.08sen to a loss per share of 36.32sen during
the period.


HONAN PLANTATIONS SDN BHD: Voluntary winding-up
-----------------------------------------------
The members of Honan Plantations Sdn Bhd on 5/10/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 11/11/98.


NHSG MANAGEMENT COMPANY SDN BHD: Winding-up petition
----------------------------------------------------
Bank Islam Malaysia Bhd on 8/9/98 petitioned for the
winding-up of NHSG Management Company Sdn Bhd. The petition
is directed to be heard on 11/11/98.


RENONG: Bonds hoped to ease debt burden
---------------------------------------
According to the Hong Kong Standard and the SCMP, top
Malaysian conglomerate Renong, seeking to reduce huge
debts, announced yesterday that it would repay its loans
through government-backed bonds.

Executives expected to issue 10.5 billion ringgit. The
government was to set up the special Infrastructure
Development Corp to issue bonds for the restructuring, but
would not pay for restructuring. Lee Kin Seng of Renong
advisers Credit Suisse First Boston said that 4.5 billion
ringgit would be bonds for various rail projects and
another 6 billion ringgit was expected to be used to
restructure the debts of Renong and associate United
Engineers.

With stakes taking in 12 Kuala Lumpur-listed firms, Renong
has interests in construction, engineering, financial
services, telecommunications, toll roads, hotels and oil.
The conglomerate was the main investment vehicle of Prime
Minister Mahathir Mohamad's political party, the United
Malays National Organisation, but was sold off several
years ago. It is controlled by Halim Saad, a protege of key
Mahathir adviser and economy minister Daim Zainuddin.
According to the SCMP, Renong is 17 percent owned by Halim
Saad.

The SCMP also says that the Renong and UEM group's debts
are estimated at $20 billion, about 8 per cent of all loans
in Malaysia's entire banking system.

It is intended that Renong redeem the government-backed
bonds when they mature after 2004 using revenue from its
toll operator Plus. If it fails to do so, the government
may end up owning Plus.

Credit Suisse's Lee Kin Seng said the group had effectively
pledged its "crown jewel" to the government as collateral.

Mr Halim on the other hand said yesterday that he did not
view the deal as a government bailout, but rather the other
way round as Renong was in turn rescuing a number of
troubled state projects. He said Renong was taking on the
burden of restructuring loans at two government-owned
firms, the national railway Keretapi Tanah Melayu and
suburban railway Sistem Transit Aliran Ringan.

Plus will no longer have to repay a $824 million government
loan. Instead the money will be used to pay off lenders of
another toll road unit, Linkedua, with the government loan.
Instead the money will be used to pay off lenders of
another toll road unit, Linkedua, with the government
collecting the loan at a later date.


RENONG BHD: Move to curb cheap sale to aliens
---------------------------------------------
According to the New Straits Times, Renong Bhd executive
chairman Tan Sri Halim Saad yesterday said the RM10.5  
billion debt restructuring proposal was formulated to
prevent interests in strategic national projects from going
to foreigners at depressed prices.

Other options like rights issue, new loans and debt
financing was considered not possible given the current
depressed market conditions, tight liquidity and the
aversion of foreign lenders to emerging markets. He added
the main aim of the exercise was to preserve the
privatisation programme and to avoid financial burdens
being passed on to the Renong group of companies and the
Government.


RENONG: Renong aid may spur new bailouts
----------------------------------------
According to the SCMP, analysts said Malaysian conglomerate
Renong's US$3.3 billion debt restructuring plan, criticised
as a government bailout, could be a precursor to other
rescue moves in the recession-hit economy, but few other
companies would have an affiliate with strong cash flow
such as Renong's toll-road unit, Projek Lebuhraya
Utara-Selatan (Plus).

Under the plan, the government would issue M$10.5 billion
worth of bonds that Renong and affiliate United Engineers
would use to cut their debt. A dealer at a local bank
brokerage said this is a bailout that smells of cronyism,
and basically United Engineers is being sacrificed to save
Renong. Analysts described parts of the plan as a creative
method of cutting the debt of the politically well-
connected group.

Malaysia's opposition leader Lam Kit siang said Malaysians
were entitled to know why Renong chalked up such colossal
debts that now require a government bailout.

Renong denied the deal was a bailout, saying no government
resources would be used, instead, Renong was helping to
rescue some government projects.

The whole plan rests on the group's ability to get approval
from the government and creditors. Renong said the
government had approved the plan in principle but not its
70 creditors.

Analysts said the government might intervene in other deals
in order to allay suspicions Renong was helped because of
its political connections.


RIA SUKAHATI HOLIDAY SDN BHD: Winding-up petition
-------------------------------------------------
Hotel Grand Central Ltd on 18/8/98 petitioned for the
winding-up of Ria Sukahati Holiday Sdn Bhd. The petition is
directed to be heard on 24/11/98.


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

PHILIPPINE AIRLINES: PAL in need of $1.6b for take-off
------------------------------------------------------
A report on the SCMP says that PAL needs nine billion pesos
in new capital to resume normal operations after various
disruptions, according to the secretary of finance. About 5
billion pesos of the new capital would have to come from
new investors while four billion pesos would come from
present investors, the Manila Bulletin yesterday quoted
Edgardo Espiritu as saying.

Mr Espiritu, who headed an inter-agency body that reviewed
the prospects of reviving the airline, said PAL chairman
Lucio Tan would have to give up management control of the
airline to the new investors. He also said that Mr Tan, who
controlled almost 70 per cent of PAL, and government
financial institutions, which owned about 10 per cent,
would have to infuse capital.

However, the report also quoted the heads of two government
financial institutions as saying they would not be putting
new money into PAL, which is weighed down by US$2.1 billion
in debt.

PAL has resumed flying to 14 cities in the Philippines and
plans to revive international operations on Oct. 15. It is
also rushing to complete a rehabilitation plan for
submission to the Securities and Exchange Commission next
month amid indications that this plan will rely heavily on
new investors.

The Philippine corporate watchdog said yesterday it had
ordered the dissolution of a committee that was created to
take charge of the disposition of PAL's assets when it
stopped flying last month. It ordered the company's interim
rehabilitation receiver to assume the tasks of the
management committee and to submit a rehabilitation plan
for PAL not later than Nov 20.


PHILIPPINE AIRLINES: PAL sets sights on foreign skies
-----------------------------------------------------
According to the SCMP, resurrected Philippine Airlines is
preparing to renew regular services in foreign skies this
week but may avoid using leased jumbo jets to fly to the
United States for fear of action by creditors there. PAL
yesterday made an international flight for the first time
since shutting down on Sept. 24. An Airbus 320 flew
President Joseph Estrada to Singapore on his first foreign
trip since taking office in June. Problems with United
States creditors might force PAL to use the smaller Airbus
340-300 instead of its two leased Boeing 747-400 planes in
swings to Los Angeles and San Francisco, which have large
Filipino communities.


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

BANPU PCL: Warrant trading to be suspended and delisted
-------------------------------------------------------
Banpu Plc (BANPU) announced the last exercising period of
warrants for subscribing to its common shares (BANPU-W)
with closing date scheduled Oct 15, 1998 at noon to Nov 15,
1998 at 3.30 pm. These warrants will be no longer listed
securities in the Exchange. As a result this is the last
excercise session for the warrant holders who want to
subscribe its common shares.

Therefore, to comply with the settlement and securities
transfer system, BANPU has asked the SET to suspend trading
in its warrants (BANPU-W) effective from October 12, 1998 -
November 15, 1998 by virtue of Clause 5(6) of the SET's
Rules, Conditions and Procedures for the Temporary
Prohibition of Trading of Listed Securities, notified on
February 9, 1995. The SET will suspend trading on warrants
of BANPU Plc marked as BANPU-W from Oct 12 - Nov 15,1998 as
the company requested.


DUSIT THANI GROUP: To restructure by selling Princess
-----------------------------------------------------
According to the Nation, the Dusit Thani Group, the
country's largest Thai owned hotel chain, plans to sell
part of its stake in the four-star Princess Hotel chain to
foreign investors as part of its restructuring, according
to the top executive.


PADAENG INDUSTRY: Announces capital increase
--------------------------------------------
Padaeng Industry PCL has announced its intention to issue
70 million new ordinary shares and any remaining shares
from an offering to the existing share-holders (52 million
shares) in 1996, to an investors(s) who is qualified or is
in the 17 categories as mentioned in the announcement of
the Securities and Exchange Commission (SEC).

The company plans to use the proceeds from the capital
increase for short- and long-term debt outstanding in
accordance with the Override Agreement signed with 9
creditors. Any remaining fund will be used for the
company's working capital. The company hopes that with
lessening principal and interest burden, creditors will
have greater confidence in the company's financial position
and have agreed to extend the repayment period for total
debt outstanding.


TELECOM HOLDINGS: Considers selling stake in UBC
------------------------------------------------
The Nation reports United Broadcasting Corp (UBC) is likely
to see a major shareholding restructure in less than six
months. The largest shareholder, Telecom Holdings Plc (TH),
is considering selling its stake. However, TH president Dr
Vallobh Vimolvanich said his company has not been seeking
buyers for its UBC stake as many have said.

"We are not approaching anybody to sell the UBC stake, but
we would never say no to anybody who cares to talk with us
and make a good offer. At this stage there is nobody,"
Vallobh said.

Financial difficulties have forced TH to shed several
subsidiaries as part of a massive reorganisation plan
demanded by its parent company Charoen Pokphand Group, one
of Thailand's largest conglomerates.


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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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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