---

T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Thursday, October 15, 1998, Vol. 1, No. 165

                    Headlines


* C H I N A   &   H O N G   K O N G *

DHARMALA HOLDINGS: Chinney to subscribe to new shares
ENGLISH CLUB LIMITED: Winding-up petition
FAI INSURANCES: Mulling offers for FAI Life Limited
FIRST PACIFIC: May sell stake in FPB Holdings
GKC HOLDINGS: Makindo begins legal fight for GKC shares

GUANGDONG INTERNATIONAL: Gitic and subsidiaries owe $11b
HAI YI TRADING COMPANY LIMITED: Members' meeting
HOPEWELL HOLDINGS: Hopewell unit may face $53b suit
THE SILK FACTORY LIMITED: Winding-up petition
SOUNDTEK ENGINEERING COMPANY: Winding-up petition


* I N D O N E S I A *

GARUDA INDONESIA: To convert domestic debt
MODERNLAND REALTY: First bankruptcy under new law


* J A P A N *

KURABO INDUSTRIES: Revises earnings forecast
MITSUBISHI OIL: Results announcement
SUMITOMO TRUST: To sell leasing firm to Deutsche Bank


* K O R E A *

HANGUK GENERAL CONSTRUCTION: Creditor reconciliation
KIA MOTORS: Ford bid for Kia fades
SUMYONG STORAGE MANAGEMENT: Creditors liquidate company


* M A L A Y S I A *

ABRAR CORPORATION: Winding-up of subsidiary
C.A.M. TECHNOLOGY SDN BHD: Voluntary winding up
INTRIA BHD: Results - 30/6/98
KECK SENG (M) BHD: Results - 30/6/98
KUB MALAYSIA BHD: Results - 30/6/98

KUCHAI DEVELOPMENT BHD: Results - 30/6/98
KUMPULAN BELTON: Results - 30/6/98
LEADER UNIVERSAL HOLDINGS BHD: Results - 30/6/98
LION CORPORATION BHD: Results - 30/6/98
MBF CAPITAL BHD : Results - 30/6/98

RENONG: Renong announces restructure
WARTA SUPERSTORE (SG. PETANI) SDN BHD: Winding-up petition


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

EYCO GROUP: Seeks permission to disband executive committee
PHILIPPINE AIRLINES: Cathay close to PAL deal


* S I N G A P O R E *

NATSTEEL LTD: Sells stake in NatSteel Electronics


* T H A I L A N D *

MANAGER MEDIA GROUP: Restructuring by two banks
SIAM CEMENT: Hires consultants for restructuring
THAINOX STEEL: Ugine to raise equity stake


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

DHARMALA HOLDINGS: Chinney to subscribe to new shares
-----------------------------------------------------
Dharmala Holdings Ltd. a Hong Kong property and financial-
service company, said Chinney Investments Ltd will
subscribe to an issue of 233.7 million new shares in the
company giving it a 20% stake. Chinney will have the option
to purchase an additional 323.1 million shares in Dharmala
that are being claimed by Sumitomo Bank on behalf of a
syndicate of banks.

Sumitomo Bank has reserved the right to sell the shares due
to the inability of Dharmala Holdings's controlling
shareholder, Dharmala International Ltd, to make payments
to the bank syndicate totaling more than HK$163 million.
Dharmala International is controlled by Indonesia's  
Gogokusomo family holding 27.9 % of the total.


ENGLISH CLUB LIMITED: Winding-up petition
-----------------------------------------
Notice is hereby given that a petition for the winding-up
of English Club Limited by the High Court of Hong Kong was,
on the 29th day of September, 1998, presented to the said
Court by King, Victor Simon Leslie 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.  


FAI INSURANCES: Mulling offers for FAI Life Limited
---------------------------------------------------
FAI Insurances Limited has informed the SEHK that in view
of the market strength of FAI Life Limited the Board has
appointed Geoff Hill from Geoffrey Hill & Associates to
assess the various offers the company is receiving for our
47.8% of FAI Life Limited and generally to assist FAI in
developing and implementing appropriate strategies.


FIRST PACIFIC: May sell stake in FPB Holdings
---------------------------------------------
First Pacific said it was considering the possibility of
selling a portion of its interest in its affiliate, FPB
Holdings, but denied reports that negotiations relating to
such a sale were in progress. First Pacific admitted it was
always engaged in reviewing strategic alternatives for each
of its investments.

An earlier report said the company was in separate
negotiations with three to four firms, including China
Everbright Group on the purchase of First Pacific's 51%
stake in FPB Holdings. Talk of the diversified conglomerate
reducing its stake in the bank has gathered pace given the
recent wave of mergers and acquisitions among small and
medium-sized banks in Hong Kong.


GKC HOLDINGS: Makindo begins legal fight for GKC shares
-------------------------------------------------------
According to the SCMP, a legal battle is to erupt over 144
million GKC Holdings' shares and an alleged debt of $30
million owed by one of the company's troubled subsidiaries.

Makindo Finance claims the shares are security under a loan
agreement made with German Kitchen (HK) last December.

According to a High Court writ, the $30 million loan was to
be repaid on or before March 17 this year, but German
Kitchen failed or refused to settle the sum.

At the time of the initial agreement, a deed was executed
for 144 million GKC Holdings' shares to be deposited with
Makindo to secure repayment of all money owed by German
Kitchen. The deed was made with Eric Tang Yiu-hong acting
on behalf of China Investment Assets Ltd, of which he was a
director, and with the knowledge, consent and/or
authorisation of Eugene Tang Yiu-chuen in his capacity as a
director of China Investment Assets, a subsidiary of German
Kitchen. Makindo claimed that under the deed, it could sell
or dispose of all or any part of the shares if German
Kitchen defaulted on the loan. However, a letter sent on
August 28 to Makindo from  China Investment stated that
although the shares were mortgaged as a security for the
loan, the deed did not bind China Investment. Moreover, it
demanded Makindo returned the shares.

Makindo had requested in solicitors' letters to GKC
Holdings that it be registered as its shareholder and the
transfer of shares from China Investment to Makindo be
registered, but GKC Holdings had allegedly refused to do
so. Makindo is seeking repayment of the $30 million loan
from German Kitchen, or the two Tang brothers, plus
interest at 18 per cent a year, and costs. The company
further seeks a declaration from China Investment that it
is entitled to a legal mortgage for the security upon the
shares. Alternatively, it seeks an order or declaration
that China Investment be debarred from all right, title,
interest and equity in the shares. Another option of an
order for the sale of the shares is also sought.


GUANGDONG INTERNATIONAL: Gitic and subsidiaries owe $11b
--------------------------------------------------------
According to the SCMP, collapsed Gitic and its Hong Kong
subsidiaries owe about $11 billion to more than 80 local
and foreign banks in Hong Kong, as revealed by Hong Kong
Monetary Authority deputy chief executive David Carse.

Mr Carse described the exposure as significant but
emphasised it was not threatening to any individual banks.
No single bank had exposure of more than $1 billion and
most had exposure far below that.

The figure represents direct exposure of $7 billion and
contingent liabilities of $4 billion. The contingent
liabilities include guarantees given by Gitic in respect of
borrowings by other companies and derivatives. He said a
majority of the contingent liabilities were related to
Gitic's operations on the mainland and most seemed to have
been registered with the State Administration for Foreign
Exchange (Safe).

Mr Carse said the direct exposure was split equally between
the rent and its Hong Kong operations. He said it was not
yet clear whether the foreign debt registered with Safe
would be fully repaid by the People's Bank of China (PBOC).

Provisional liquidator KPMG Peat Marwick partner Gabriel
Tam Chi-kok said foreign banks could suffer losses as a
result of the liquidation as it was possible the two firms
did not have enough assets to cover debts.

He said foreign creditors could make a claim against Gitic
HK and Guangxin and would be repaid in accordance with
their status with funds from asset disposals. They could
also file a claim against Gitic, if the loans were
guaranteed by the mainland parent. Mr Tam could not comment
on any possible guarantees Gitic had provided for the Hong
Kong offshoots.

Gitic HK's assets include a 58 per cent stake in Gitic
Enterprises and a 15.07 per cent interest in DC Finance as
well as some property interests in Hong Kong.

Foreign banks had lent to Gitic HK and Guangxin primarily
based on their background instead of their financial
viability. If its Hong Kong subsidiaries are liquidated
with Hong Kong rules, foreign banks will incur losses.

According to the Hong Kong Standard, Vice-Finance Minister
Lou Jiwei said yesterday in reply to concern over debt
repayment that Beijing will not guarantee unregistered
foreign debt, and policies have always been for the company
to pay a registered foreign debt, and if it is unable to,
the central bank will give the guarantees.

Market estimates were that Gitic had US$500 million in
short-term debt and another US$500 million in long term
debt. Gitic had raised more than US$5 billion since its
start in 1980.

The Stock Exchange has no plans at this stage to revoke the
licence of the local subsidiary of the mainland-based Gitic
and will not specifically deal with the issue.

A decision will be made soon on whether locally listed
Gitic Enterprises will continue its operations or be wound
up, pending an assessment of its financial position.

KPMG Marwick which is doing the assessment, said the fate
of Gitic Enterprises would depend on whether it would
continue to receive support from its bankers.

KPMG Marwick partner Mr Gabriel Tam said its assets and
liabilities are not known yet, but he thinks that its
liabilities will be much much less than that of its two
subsidiaries which have been placed under voluntary
liquidation. He said the listed company was operating
normally and it still had orders on hand and and stocks
receivable.

Mr Tam said there were about 30 to 40 firms, mostly holding
and joint venture companies, under the two subsidiaries of
Gitic Enterprises in Hong Kong. They are holding assets
such as a commercial building in Causeway Bay, a plot of
land in the New Territories and mainland hotels and other
properties.


HAI YI TRADING COMPANY LIMITED: Members' meeting
------------------------------------------------
A meeting of the members and creditors of Hai Yi Trading
Company Limited  will be held on Oct 23 at 10:00 am and
11:00 am respectively. The meetings will be held at the
office of Kennic L.H. Lui & Company, 5/F., Ho Lee
Commercial Building, 38-44 D'Aguilar Street, Hong Kong.
Proxies must be lodged at the offices of Kennic L.H. Lui &
Company, 5/F., Ho Lee Commercial Building, 38-44 D'Aguilar
Street, Hong Kong, no later than 4:00 pm on the day before
the meetings.


HOPEWELL HOLDINGS: Hopewell unit may face $53b suit
---------------------------------------------------
Thailand's transport ministry yesterday said it may sue the
Thai unit of Hopewell Holdings for US$6.8 billion for
failing to complete an elevated rail and road project.

Deputy transport minister Pradit Pattraraprasit said the
railway had the right to claim some 260 billion baht from
Hopewell (Thailand). Mr Pradit said that they have the
right to sue Hopewell for 260 billion baht opportunity cost
as Hopewell was unable to complete the project as
contracted.

Hopewell was ordered off the project in January after the
Thai government suspended construction citing major delays
and cost overruns. The company is seeking compensation of
some 100 billion baht for the cancellation of the US$4
billion project.   


THE SILK FACTORY LIMITED: Winding-up petition
---------------------------------------------
Notice is hereby given that a petition for the winding-up
of The Silk Factory Limited by the High Court of Hong Kong
was, on the 9th day of October, 1998, presented to the said
Court by Leung Mui and the petition is heard on 11th day of
November, 1998. Other creditors who support or oppose the
making of the order may appear at the time of the hearing.  


SOUNDTEK ENGINEERING COMPANY: Winding-up petition
-------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Soundtek Engineering Company Limited by the High Court
of Hong Kong was, on the 9th day of October, 1998,
presented to the said Court by Wong Man Leung and the
petition is heard on 11th day of November, 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
=================

GARUDA INDONESIA: To convert domestic debt
------------------------------------------
A report on the SCMP says that Garuda Indonesia will
convert domestic bank debt into convertible bonds at a
coupon rate of 6 per cent in a debt-restructuring program,
according to Ministry for State Enterprises Tanri Abeng.

He said Garuda's debts to the government would be converted
into equity, but gave no further details, and there were no
immediate figures available on Garuda's domestic debt.

Last week Garuda president Robby Djoban said he expected
the carrier to post a net loss of 400 bllion rupiah this
year.


MODERNLAND REALTY: First bankruptcy under new law
-------------------------------------------------
A court yesterday declared its first bankruptcy under a new
law designed to help clean up the nation's mess of
insolvent companies, but financial analysts said the ruling
only confused matters further.

The central Jakarta commercial court ordered property firm
Modernland Realty bankrupt after two of its debtors filed
suit for the recovery of a sum equivalent to US$10,000. The
sum raised concerns about the court's interpretation of the
new bankruptcy law. Analysts pointed to an earlier decision
by the same court to reject a bankruptcy suit where $125
million was at stake.


=========
J A P A N  
=========

KURABO INDUSTRIES: Revises earnings forecast
--------------------------------------------
Kurabo Industries Ltd of Japan revised downward its group
and parent earnings estimates because of sluggish sales and
securities valuation losses. For the current fiscal year
through March 1999, the textile manufacturer now forecasts
a group net loss of 600 million yen, as compared to a net
profit of 700 million yen previously expected. Group sales
outlook for the fiscal year was cut to 137 billion yen from
147 billion yen.

On an unconsolidated basis, Kurabo expects parent pretax
and net figures to break even for the fiscal year. It had
previously projected parent pretax profit at one billion
yen and net profit at 700 million yen. Parent sales
forecast for the full fiscal year was cut to 110 billion
yen from 120 billion yen.


MITSUBISHI OIL: Results announcement
------------------------------------
Mitsubishi Oil Co. said it will post a parent pretax loss
of nine billion yen, for the year ending March 31, 1999,
reversing an earlier forecast for a pretax profit of three
billion yen.

The oil refiner said falling petroleum product prices and
the deterioration of petrochemicals prices in the Asian
market will probably more than counteract its
rationalization efforts.

For the current fiscal year, Mitsubishi Oil now predicts an
unconsolidated net loss of eight billion yen and sales of
1.016 trillion yen. For the first half ended Sep 30,
Mitsubishi Oil is expected to post a parent pretax loss of
2.8 billion yen, having forecast that it would achieve
break-even level. The company said it will post a group
pretax loss of 14 billion yen, against a break-even
forecast, and a net loss of 13 billion yen for the year,
against a forecast for a loss of three billion yen.

Mitsubishi Oil tied the downward revision of its group
earnings mainly to an erosion in domestic and overseas
petroleum and petrochemical-product prices. and to the
initial costs from the start-up of its project to produce
crude oil in Vietnam.


SUMITOMO TRUST: To sell leasing firm to Deutsche Bank
-----------------------------------------------------
Sumitomo Trust & Banking said yesterday it would sell its
wholly owned aviation leasing firm to Deutsche Bank of
Germany for US$120 million. A spokesman for Sumitomo Trust
said they decided to sell the firm in order to strengthen
their capital base. He said the sale would be completed by
next month. Sumitomo rust would sell Boullioun Aviation
Services, located in Washington state.  


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

HANGUK GENERAL CONSTRUCTION: Creditor reconciliation
----------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Hanguk General Construction Company
applied to the Inchon District Court for a creditor
reconciliation procedure on October 13, 1998.


KIA MOTORS: Ford bid for Kia fades
----------------------------------
Reuters reports Ford Motor Company's bid for  Korea's Kia
Motors and Asia Motors seemed less likely to succeed after
sources said on Wednesday the company had asked for the
biggest debt write-off among competing bidders. Ford wanted
7.5 trillion to 8.0 trillion won ($5.6 billion to $6.0  
billion) of debt reduction, analysts familiar with the
bidding said.

South Korea's three bidders -- Hyundai Motor, unlisted
Daewoo Motor and Samsung Motors -- had asked for between
5.5 trillion won and seven trillion won of write-offs, they
added.


SUMYONG STORAGE MANAGEMENT: Creditors liquidate company
-------------------------------------------------------
The Sumyong Storage Management Company advertised in the
Korean language Maeil Kyungje that upon the decision made
at the September 11th creditors' meeting, the company has
decided to liquidate. The creditors have until December 14,
1998 to file their claims. The company's address is 45-11
Mokdong-ri, Kyohwa-myon, Paju-shi and the president is Mr.
Paek Kap-su.


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

ABRAR CORPORATION: Winding-up of subsidiary
-------------------------------------------
Abrar Corporation has announced the voluntary winding-up of
51 per cent subsidiary Honan Plantations Sdn Bhd, putting
the latter's long drawn-out lawsuit against a Renong
subsidiary in doubt. According to the New Straits Times
yesterday, Abrar said Honan stopped operations in June 1996
and was now insolvent. It added that Honan was expected to
pay up its debts within 12 months from the start of the
winding-up process. No other details were given.

The winding-up decision, however, could prove to be a
windfall for Prolink Development Sdn Bhd, which Honan had
sued over a land deal.


C.A.M. TECHNOLOGY SDN BHD: Voluntary winding up
-----------------------------------------------
The members of C.A.M. Technology Sdn Bhd on 8/1/98 resolved
to wind up the company voluntarily. Creditors are requested
to submit their claims before 13/11/98.


INTRIA BHD: Results - 30/6/98
-----------------------------
Intria Bhd (listed on the KLSE - construction sector)
reported a post-tax loss of RM377.259mil for the year ended
30/6/98, compared to a post-tax profit of RM30.358mil
previously. EPS fell from 4sen to a loss per share of
49sen.


KECK SENG (M) BHD: Results - 30/6/98
------------------------------------
Keck Seng (M) Bhd (listed on the KLSE) reported a post-tax
loss of RM38.898mil for the 6months ended 30/6/98, compared
to a post-tax profit of RM17.279mil previously. EPS fell
from 7.17sen to a loss per share of 16.01sen.


KUB MALAYSIA BHD: Results - 30/6/98
-----------------------------------
KUB Malaysia Bhd (listed on the KLSE) reported a post-tax
loss of RM28.086mil for the half year ended 30/6/98. Loss
per share was 5.6sen during the same period.


KUCHAI DEVELOPMENT BHD: Results - 30/6/98
-----------------------------------------
Kuchai Development Bhd (listed on the KLSE) reported a
post-tax loss of RM6.383mil for the 6months ended 30/6/98.
Loss per share was RM2.39 during the same period.


KUMPULAN BELTON: Results - 30/6/98
----------------------------------
Kumpulan Belton (listed on the KLSE) reported a post-tax
loss of RM6.796mil for the 6months ended 30/6/98, compared
to a post-tax profit of RM3.647mil previously. EPS fell
from 9.2sen to a loss per share of 17.33sen.


LEADER UNIVERSAL HOLDINGS BHD: Results - 30/6/98
------------------------------------------------
Leader Universal Holdings Bhd (listed on the KLSE) reported
a post-tax loss of RM50.351mil for the 6months ended
30/6/98, compared to a post-tax profit of RM63.677mil
previously. EPS fell from 14sen to a loss per share of
11.7sen.


LION CORPORATION BHD: Results - 30/6/98
---------------------------------------
Lion Corporation Bhd (listed on the KLSE) reported a post-
tax loss of RM344.913mil for the year ended 30/6/98,
compared to a post-tax profit of RM65.349mil previously.
EPS fell from 36.4sen to RM2.33 during the same period.


MBF CAPITAL BHD : Results - 30/6/98
-----------------------------------
MBF Capital Bhd (listed on the Financial Sector of KLSE)
reported a post-tax loss of RM510.539mil for the 6months
ended 30/6/98, compared to a post-tax profit of
RM177.744mil previously. EPS fell from 22.7sen to 65.2sen
during the same period.


RENONG: Renong announces restructure
------------------------------------
According to the SCMP, Renong, Malaysia's top construction
group, is creating four units as it overhauls operations
and management after the government rescued it by replacing
M$10.5 billion in debt with state bonds. With 19,000 on its
payroll, is forming construction and engineering,
expressways, property development, and transport units and
each of the four divisions will be headed by a president
who will report to the executive chairman Halim Saad. A
research manager said that the reorganisation will make it
a neater structure but it doesn't change it from being very
much an investment holding company.

Like other companies in Malaysia, Renong is scrambling to
put its house in order after grappling with the high
interest rates spawned by the ringgit's 35 per cent plunge
against the US dollar. The company lost $794.1 million in
the year to June, compared with profit of $469.5 million a
year ago.

In their first day of trading since the government rescue
plan was announced on Friday, Renong's shares soared 31.5
per cent to as much as $1.25 yesterday and closed at $1.17.

Last week, Malaysia bailed out developers, including
Renong, to avert a potential collapse of its financial
industry. Under the plan, the government will ask creditors
to agree to a delay in repayment from the cash-strapped
company until at least 2004.

Renong has about $20 billion in debt, more than 5 per cent
of all loans in Malaysia's banking system.

The Hong Kong Standard reports briefly about the
announcement of the restructure.


WARTA SUPERSTORE (SG. PETANI) SDN BHD: Winding-up petition
----------------------------------------------------------
Ladymade Fashion (M) Sdn Bhd on 25/9/98 petitioned for the
winding-up of Warta Superstore (Sg. Petani) Sdn Bhd. The
petition is directed to be  heard on 15/12/98.


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

EYCO GROUP: Seeks permission to disband executive committee
-----------------------------------------------------------
BusinessWorld reports creditor banks of the Eyco Group of
companies are asking the Securities and Exchange Commission
(SEC) to dissolve the executive committee (execom) created
two months ago to oversee the day-to-day operations of the
cash-strapped appliance manufacturing firm.

Instead, the creditors asked the SEC to restore the
original management committee (mancom) formed in January.
Eyco's creditors said the functions of the mancom were
reduced with the creation of the execom. They added the
execom has "eroded" their participation in the drafting of
Eyco's rehabilitation plan. Both committees were intended
to be functionally independent.


PHILIPPINE AIRLINES: Cathay close to PAL deal
---------------------------------------------            
Reuters reports Philippine president Joseph Estrada on
Wednesday said Hong Kong-based Cathay Pacific Airways Ltd
was close to wrapping up a deal to buy 40 percent of
struggling Philippine Airlines (PAL). He said talks had
ended with U.S.-based Northwest Airlines, which had also  
expressed interest in flag carrier PAL.

Estrada, credited with persuading PAL's biggest labour
union to accept a management offer that paved the way for
the resumption of local flights early this month, said PAL
chairman and majority shareholder Lucio Tan was discussing  
a debt restructuring plan with creditors. PAL owes about
$2.0 billion to both local and foreign creditors.


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

NATSTEEL LTD: Sells stake in NatSteel Electronics
-------------------------------------------------
Singapore Business Times reports NatSteel Ltd has sold a 10
per cent stake in crown jewel NatSteel Electronics (NEL)
for $134 million to cut its heavy debt burden.

Placement agent DBS Bank, which is also a major shareholder
of NatSteel, said the 43.01 million vendor shares were
placed out at $3.12 a share, a 6.6 per cent discount from
NEL's Monday closing price of $3.34.

The placement, which represents 10 per cent of NEL's
issued capital, cut NatSteel's stake to 33.98 per cent. But
it remains NEL's largest single shareholder, and indicated
it would hold on to its electronics business.

The net proceeds of about $131.5 million will be used
to cut group borrowings and "enhance the group's ability to
selectively seize new investment opportunities in the
region that may complement or add value to its core
businesses", said NatSteel.

According to its interim results announcement, NatSteel had
debts of $935 million at June 30. About 97 per cent of the
$935 million were loans repayable in a year or less.


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

MANAGER MEDIA GROUP: Restructuring by two banks
-----------------------------------------------
The Nation reports Manager Media Group Plc (MGR), the
publisher of Daily Manager and Monthly Manager, is one of
the largest debtors currently being restructured with the
consent of its two large creditors Thai Farmers Bank and
Thai Military Bank.

As part of the restructuring process, the two banks have      
agreed to extend the repayment period for the loans, worth      
a total of Bt644 million, Bt176.82 million to TFB and      
Bt467.76 million to TMB.

"The company proposed its rehabilitation plan to the two      
banks to ease its debt burden. MGR has also requested      
an extension of the debt-repayment period," Sondhi      
Limthongkul, MGR's chairman, said.

The two banks Tuesday filed a proposal with the Civil      
Court to appoint Pipat and Friend Co to carry out the      
rehabilitation plan. Before finalisation of the
rehabilitation plan, MGR and its creditors will meet at the
Civil Court on Nov 6 for further classification of the
debts. MGR is a debtor of seven local and 16 foreign
financial institutions. MGR has a total debt of Bt1.5
billion incurred from its vast expansion during the boom
years, but financial problems emerged when banks squeezed
loans amid severe liquidity problems.


SIAM CEMENT: Hires consultants for restructuring
------------------------------------------------
The Nation reports Siam Cement Plc (SCC) has hired Germany-
based Deutsche Bank and America-based Chase Manhattan Bank
as its financial consultants in a review of corporate
restructuring strategies. Last month, the giant industrial
conglomerate received a restructuring proposal drawn up by
McKinsey & Co. The two banks will consider if the proposal
is financially acceptable. The review is scheduled to be
completed by the end of this year so that the cement
company can implement it early next year.

The source said the company so far has drawn up its own      
restructuring strategies, but the new measures will make      
the company more efficient in the fast-changing world.


THAINOX STEEL: Ugine to raise equity stake
------------------------------------------
The Nation reports Usinor-Sacilor (Ugine), Europe's second
largest steel maker, has injected US$40 million into
Thainox Steel Ltd, raising its equity by 20 per cent from
less than 50 per cent. Ugine originally held their stake in
Thainox both directly and indirectly. Its holding has
increased to 70 per cent after recapitalisation. Twenty-
five per cent equity is owed by six Japanese companies,
including Nippon Steel, Kawasaki Steel, Sumitomo Metal
Industries, Nippon Yakin Kogyo, Nisshin Steel, and Nippon
Metal Industry. The remaining 5 per cent is taken by
Prayudh Mahakitsiri of the PM Group, said La-aid
Vongvongepop, who was promoted to deputy managing director
of Thainox in May.

With long-term potential in the regional stainless steel      
market, Ugine increased its ownership in Thainox to ease      
liquidity crunch problems. Its debt burden of around      
US$200 million is due mainly to investment in the second      
phase expansion.


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

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