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/raid1/www/Hosts/bankrupt/TCRAP_Public/981022.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 Thursday, October 22, 1998, Vol. 1, No. 170 Headlines * C H I N A & H O N G K O N G * AZTEC TOYS LIMITED: Winding-up order CELESTIAL ASIA SECURITIES: Agreement on loan capitalization DAIDO CONCRETE (HK): Exclusivity agreement with Man Fai Tai ELITE ENTERPRISES LIMITED: Winding-up order GK CHINA: GK China to be wound up GUANGDONG OVERSEAS: HK banks show great exposure to firm GUANGZHOU INTERNATIONAL: Banks disappointed with meeting HING CHEONG INDUSTRIAL LIMITED: Winding-up order HUGE GAIN (ASIA) LIMITED: Winding-up order HYSAN DEVELOPMENT: Sales to help cut Hysan debt LINKROY INTERNATIONAL LIMITED: Winding-up order NEWKINGS ENTERPRISES COMPANY LIMITED: Winding-up petition SMART CO LIMITED: Winding-up order TA FU INTERNATIONAL: Denies reports of winding-up petition TIEN SEE KNITTING FACTORY LIMITED: Winding-up order WALLIE DEVELOPMENT LIMITED: Winding-up order WING SENG ENTERPRISES: Winding-up petition * J A P A N * DAIMARU INC: Debt rating on department stores cut HANKYU DEPT STORES: Debt rating on department stores cut ISETAN CO: Debt rating on department stores cut ITOCHU CORP: Sets aside Y7.8 bn to cover potential losses JAPAN AIR SYSTEM: To hand over intl flights to subsidiary MATSUYA CO: Debt rating on department stores cut MITSUKOSHI LTD: Debt rating on department stores cut RENOWN INC: To close plant in restructuring effort TAKASHIMAYA CO: Debt rating on department stores cut * K O R E A * KIA MOTORS: Creditors will consider Hyundai's offer SHINKWANG INDUSTRY: Starts creditor reconciliation * M A L A Y S I A * BINA PETRA SDN BHD: Winding-up petition CHIN KENG CONSTRUCTION SDN BHD: Winding-up petition CHIN YE CONSTRUCTION SDN BHD: Winding-up petition ENERYIELD (M) SDN BHD: Winding-up petition KENCANA VENTURE SDN BHD: Winding-up petition MAEHUN ELECTRICAL ENGINEERING: Winding-up petition TAIPING GROUP: YTL to buy properties from ailing firm TIME ENGINEERING BHD: RESULTS - 30.6.98 * P H I L I P P I N E S * MUSIC CORP: Still looking for long-term partner PHILIPPINE AIRLINES: Planes affected by collection concerns * S I N G A P O R E * ROBINSON & CO: Warnings on results SUNRIGHT LTD: Results announcement * T H A I L A N D * KELOIL-PTT SDN BHD: LPG project expansion put on hold SIAM CHEMICALS: To close Padaeng Siam Industries UNICORD PLC: BOT tell creditors to liquidate company ================================= C H I N A & H O N G K O N G ================================= AZTEC TOYS LIMITED: Winding-up order ------------------------------------ A winding-up order notice is hereby given that Aztec Toys Limited is undergoing a companies winding-up proceedings in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on October 7, 1998. The date of presentation of petition was August 11, 1998. CELESTIAL ASIA SECURITIES: Agreement on loan capitalization ----------------------------------------------------------- The financial position of Celestial Asia Securities Holdings would be improved following the capitalization of loans, said its major shareholder. Celestial and its controlling shareholder CCT Telecom Holdings announced earlier this week they reached an agreement on Monday to settle the $120 million loan by means of share subscription at discounted prices. DAIDO CONCRETE (HK): Exclusivity agreement with Man Fai Tai ----------------------------------------------------------- Further to the announcement of Daido Concrete (H.K.) Limited dated 16 September 1998, the company entered into an exclusivity agreement with Man Fai Tai Holdings Limited on 14 October 1998 whereby Man Fai Tai was given a right to exclusive negotiation relating to a proposal for restructuring the indebtedness of the group. The proposal, if implemented, will involve a restructuring of the indebtedness of the company and its subsidiaries. The implementation of the proposal may also involve a change in control of the group as a result of Man Fai Tai acquiring 35% or more of the voting rights in the company, in which case Man Fai Tai will apply to the Securities and Futures Commission for a waiver of the general offer obligation arising under the code on takeovers and mergers. ELITE ENTERPRISES LIMITED: Winding-up order ------------------------------------------- A winding-up order notice is hereby given that Elite Enterprises Limited is undergoing a companies winding-up proceedings (No 622 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on October 8, 1998. The date of presentation of petition was October 22, 1998. GK CHINA: GK China to be wound up --------------------------------- According to the SCMP, kitchen materials trader GKC Holdings said its wholly owned subsidiary GK China would be wound up as the company could not continue in business due to its liabilities. GK China has appointed Gabriel Tam Chi- kok and Alan Tang Chung-wah of KPMG Peat Marwick as provisional liquidators. GUANGDONG OVERSEAS: HK banks show great exposure to firm -------------------------------------------------------- Three major local banks, the Bank of East Asia, Hang Seng Bank and Hongkong Bank, have made substantial loans to China's international trust and investment corporations (Itics), some of which are now in deep financial trouble. BEA and Hang Seng Bank are also among the 10 biggest lenders to the Guangdong Overseas Chinese Trust and Investment Corp (Goctic), which has defaulted on its loan repayment to German bank Commerzbank. BEA is the biggest lender to Goctic with potential exposure of US$32 million out of the estimated US$275.2 million total exposure of the top 10 lenders to Goctic. Concerns also emerged yesterday that the Hong Kong Monetary Authority might have underestimated the exposure of the local banking industry to Itics. Data by debt market newsletter Basis Point reveal that the three local banks are among the top 20 local and foreign banks with the largest potential exposure totaling some US$6.39 billion to Itics, excluding their subsidiaries. The massive US$6.39 billion exposure of the top 20 lenders to China's Itics was mainly in the form of loans to Itics excluding their subsidiaries. GUANGZHOU INTERNATIONAL: Banks disappointed with meeting -------------------------------------------------------- According to the SCMP, bankers yesterday attended a meeting with Guangzhou International Trust and Investment Corp. (Gzitic), called by Societe Generale Asia, to discuss the firm's default on a US$30 million loan repayment. They were disappointed at the absence of representatives from the Guangzhou municipal government who they said did not want to appear to contradict the central government. There was lack of clues to how the issue could be resolved and what the government's attitude to it was. A banker said the municipal government had requested some Guangzhou companies to make available some capital to Gzitic, but a shortfall remained. Gzitic was also said to have failed to provide a clear picture of its financial position such as debt size and level. A Japanese banker said that Gzitic thought it was important to the Guangzhou city government and so would get support from it. Gzitic officials had asked foreign bankers for their help during what was a difficult period so as to make it easier for the Guangzhou municipal government to give it financial backing. HING CHEONG INDUSTRIAL LIMITED: Winding-up order ------------------------------------------------ A winding-up order notice is hereby given that Hing Cheong Industrial Limited is undergoing a companies winding-up proceedings (No 606 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 30, 1998. The date of presentation of petition was August 28, 1998. HUGE GAIN (ASIA) LIMITED: Winding-up order ------------------------------------------ A winding-up order notice is hereby given that Huge Gain (Asia) Limited is undergoing a companies winding-up proceedings (No 617 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on October 7, 1998. The date of presentation of petition was September 2, 1998. HYSAN DEVELOPMENT: Sales to help cut Hysan debt ----------------------------------------------- According to the SCMP, Hysan Development's chairman Lee Hon-chiu said the company is planning to dispose of investment properties worth $2 billion to reduce debt and is also considering disposing of its 1 per cent stake in China Telecom (Hong Kong), which can be traded on the open market from Friday. A corporate lock-up agreement by 12 strategic investors states that they are not allowed to sell their holdings in China Telecom until the first anniversary of its floatation and the deadline lapses this Friday. Mr Lee said the company will sell the China Telecom (Hong Kong) shares if the price is good. Mr Lee said Hysan could save $100 million a year for every $1 billion reduction in bank loans, given an annual interest rate of 10 per cent. Last year's Hysan company report said Hysan's short-term borrowings, repayable in a year, were $3.92 billion, sharply up from $22 million a year earlier. Borrowings as at December 31 reached $9.83 billion, 112.6 per cent higher than $4.62 billion a year ago. The company attributed the rise in debt largely to the acquisition of Entertainment Building in Central, construction of the Lee Gardens in Causeway Bay and purchase of the 1 per cent stake in China Telecom. Mr Lee said the company will reduce its debt levels to "acceptable" levels next year, and has no plans to dispose of other investment properties after No 3 Garden Terrace is sold. LINKROY INTERNATIONAL LIMITED: Winding-up order ----------------------------------------------- A winding-up order notice is hereby given that Linkroy International Limited is undergoing a companies winding-up proceedings (No 259 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on October 7, 1998. The date of presentation of petition was April 21, 1998. NEWKINGS ENTERPRISES COMPANY LIMITED: Winding-up petition --------------------------------------------------------- A petition for the winding up of NEWKINGS ENTERPRISES COMPANY LIMITED was presented to the High Court on Sept 28 by Yau Fook Hong Company Limited whose registered address is situate at Top Floor, Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East, Kowloon, Hong Kong, and the said petition is directed to be heard before the court at 9:30 am on Oct 29, and any creditor or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of hearing by himself or his counsel for that purpose, and a copy of the petition will be furnished to any creditor or contributory of the said company requiring the same by Solicitors for the Petitioner, Ford, Kwan & Company, Suites 1505-8, Chinachem Golden Plaza, 77 Mody Road, Kowloon, on payment of the regulated charges for the same. SMART CO LIMITED: Winding-up order ---------------------------------- A winding-up order notice is hereby given that Smart Co Limited is undergoing a companies winding-up proceedings (No 605 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 30, 1998. The date of presentation of petition was August 28, 1998. TA FU INTERNATIONAL: Denies reports of winding-up petition ------------------------------------------------------ The board of directors of Ta Fu International Holdings Limited denies the Company has received a winding up petition. The company responded to an article in the Oriental Daily of 15th October, 1998, that a winding-up petition had been made against the company by a creditor. The company has confirmed to the SEHK, however, that Ta Fu Management Services Limited, a wholly-owned subsidiary of the Company, has received a writ of summons issued by International Textile Company Limited in respect of a claim for, amongst other things, rentals, air conditioning charges and management fees for the property at Office No. 2703, 27th Floor, Admiralty Centre I, No. 18 Harcourt Road, Hong Kong in the aggregate sum of HK$199,384.40 per month commencing from June 1998. The company has instructed its legal advisers to prepare a defence for the claim. The directors consider that the claim has no material impact on the operation of the company and its subsidiaries as the property has already been vacated. TIEN SEE KNITTING FACTORY LIMITED: Winding-up order --------------------------------------------------- A winding-up order notice is hereby given that Tien See Knitting Factory Limited is undergoing a companies winding- up proceedings (No 603 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on September 30, 1998. The date of presentation of petition was August 28, 1998. WALLIE DEVELOPMENT LIMITED: Winding-up order -------------------------------------------- A winding-up order notice is hereby given that Wallie Development Limited is undergoing a companies winding-up proceedings (No 597 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is on October 7, 1998. The date of presentation of petition was October 26, 1998. WING SENG ENTERPRISES: Winding-up petition ------------------------------------------ A petition for the winding up of Wing Seng Enterprises Limited was presented to the High Court on Sept 25 by Bonny Ace Limited whose registered address is situated at Top Floor, Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East, Kowloon, Hong Kong, and the said petition is directed to be heard before the court at 9:30 am on Nov 11, and any creditor or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of hearing by himself or his counsel for that purpose, and a copy of the petition will be furnished to any creditor or contributory of the said company requiring the same by Solicitors for the Petitioner, Ford, Kwan & Company, Suites 1505-8, Chinachem Golden Plaza, 77 Mody Road, Kowloon on payment of the regulated charges for the same. ========= J A P A N ========= DAIMARU INC: Debt rating on department stores cut ------------------------------------------------- The Asian Wall Street Journal reports that the Japan Rating & Investment Information Inc. has downgraded the long-term debt ratings on seven department stores in Japan. The new rating reflect a pessimistic outlook on consumption. The stores and the ratings affected are Daimaru Inc., from BBB+ to BBB-; Hankyu Department Stores, from A- to BBB; Isetan Co., from A- to BBB; Matsuya Co., from BBB- to BB+, (now below investment grade); Mitsukoshi Ltd., from BBB+ to BB+; (now below investment grade); and Takashimaya Co., from A- to BBB+. HANKYU DEPT STORES: Debt rating on department stores cut -------------------------------------------------------- The Asian Wall Street Journal reports that the Japan Rating & Investment Information Inc. has downgraded the long-term debt ratings on seven department stores in Japan. The new rating reflect a pessimistic outlook on consumption. The stores and the ratings affected are Daimaru Inc., from BBB+ to BBB-; Hankyu Department Stores, from A- to BBB; Isetan Co., from A- to BBB; Matsuya Co., from BBB- to BB+, (now below investment grade); Mitsukoshi Ltd., from BBB+ to BB+; (now below investment grade); and Takashimaya Co., from A- to BBB+. ISETAN CO: Debt rating on department stores cut ----------------------------------------------- The Asian Wall Street Journal reports that the Japan Rating & Investment Information Inc. has downgraded the long-term debt ratings on seven department stores in Japan. The new rating reflect a pessimistic outlook on consumption. The stores and the ratings affected are Daimaru Inc., from BBB+ to BBB-; Hankyu Department Stores, from A- to BBB; Isetan Co., from A- to BBB; Matsuya Co., from BBB- to BB+, (now below investment grade); Mitsukoshi Ltd., from BBB+ to BB+; (now below investment grade); and Takashimaya Co., from A- to BBB+. ITOCHU CORP: Sets aside Y7.8 bn to cover potential losses --------------------------------------------------------- The Nihon Keizai newspaper reports Itochu Corp. said Tuesday that financial statements for the first half of the current fiscal year will feature a 7.8 billion yen reserve to cover potential losses on accounts receivable from Southeast Asian customers. The major trading house said it believes some of the receivables created when textile machines were sold to manufacturers in the region will not be honored. The reserve is one of the largest pools set aside by a Japanese trading house since the financial crisis broke out in Southeast Asia last year. The 7.8 billion yen reserve offsets 5.8 billion yen in credit to Indonesian concerns, 1.6 billion yen to Thai firms and 400 million yen to companies in Malaysia. Net profit for the first half is estimated 73% lower at 1.5 billion yen. As a result, the interim dividend will be canceled for the first time in 16 years. For the full year through March 1999, Itochu forecasts a 37% drop in pretax profit to 50 billion yen. Net profit should reach 7 billion yen, improving on the net loss of 14.7 billion yen suffered the previous year. JAPAN AIR SYSTEM: To hand over intl flights to subsidiary --------------------------------------------------------- The Nihon Keizai newpaper reports Japan Air System Co. plans to turn over all international flights to wholly owned subsidiary Harlequin Air Corp., JAS sources said. The transition will take place over the next three years. Harlequin Air, established in January 1997, will begin serving routes between Tokyo and hub terminals in China. The subsidiary already handles international charter flights and local routes under the JAS name. The transition is an effort to cut back on money-losing routes. MATSUYA CO: Debt rating on department stores cut ------------------------------------------------ The Asian Wall Street Journal reports that the Japan Rating & Investment Information Inc. has downgraded the long-term debt ratings on seven department stores in Japan. The new rating reflect a pessimistic outlook on consumption. The stores and the ratings affected are Daimaru Inc., from BBB+ to BBB-; Hankyu Department Stores, from A- to BBB; Isetan Co., from A- to BBB; Matsuya Co., from BBB- to BB+, (now below investment grade); Mitsukoshi Ltd., from BBB+ to BB+; (now below investment grade); and Takashimaya Co., from A- to BBB+. MITSUKOSHI LTD: Debt rating on department stores cut ---------------------------------------------------- The Asian Wall Street Journal reports that the Japan Rating & Investment Information Inc. has downgraded the long-term debt ratings on seven department stores in Japan. The new rating reflect a pessimistic outlook on consumption. The stores and the ratings affected are Daimaru Inc., from BBB+ to BBB-; Hankyu Department Stores, from A- to BBB; Isetan Co., from A- to BBB; Matsuya Co., from BBB- to BB+, (now below investment grade); Mitsukoshi Ltd., from BBB+ to BB+; (now below investment grade); and Takashimaya Co., from A- to BBB+. RENOWN INC: To close plant in restructuring effort -------------------------------------------------- The Nihon Keizai newspaper reports apparel maker Renown Inc. will close its sewing plant in Kakuda, Miyagi Prefecture, by the end of November, dismissing 50 employees, company sources said Tuesday. Japan's top fashion apparel maker will also scale back four of its remaining seven domestic plants as part of a three-year management restructuring. The moves will cut Renown's domestic production capacity by 20%. The Tokyo-based company posted 2 billion yen in pretax loss on sales of 183.3 billion yen for the year ended January. The company is hurriedly restructuring in order to remain profitable at a sales level of 150 billion yen. TAKASHIMAYA CO: Debt rating on department stores cut ---------------------------------------------------- The Asian Wall Street Journal reports that the Japan Rating & Investment Information Inc. has downgraded the long-term debt ratings on seven department stores in Japan. The new rating reflect a pessimistic outlook on consumption. The stores and the ratings affected are Daimaru Inc., from BBB+ to BBB-; Hankyu Department Stores, from A- to BBB; Isetan Co., from A- to BBB; Matsuya Co., from BBB- to BB+, (now below investment grade); Mitsukoshi Ltd., from BBB+ to BB+; (now below investment grade); and Takashimaya Co., from A- to BBB+. ========= K O R E A ========= KIA MOTORS: Creditors will consider Hyundai's offer --------------------------------------------------- The Korea Herald reported that the creditors of the bankrupt Kia Motors Company and its sister bus and truck maker, Asia Motors Company, are likely to meet this week to decide their official position on Hyundai Motor Company's takeover. The article also reports that some of the 70-odd creditors have stated that they cannot accept the Hyundai Motor demand for a debt write-off of 7.3 trillion won for these auto companies unless the government grants them special financial assistance. Among Kia's creditors, merchant banks and insurance creditors are reportedly insisting that Hyundai's debt write-off amount, if accepted, would deal a serious blow to their financial status, resulting in the encroachment of capital in some cases. Meanwhile, a 160-member survey team from Hyundai Motors will examine the Kia and Asia factories, production facilities, technology, and other sectors. The team should finish its field survey by November 17, and Hyundai plans to conclude a final contract to take over the companies by December 1. According to the SCMP, Hyundai chairman Chung Mong-gyu said that Hyundai will reorganise Kia's financial structure under a consortium of Hyundai Group affiliates as shareholders, and will encourage foreign investors to buy equity. Hyundai plans to inject 1.2 trillion won into the two companies by next March. Industry analysts said the deal was agreed privately between corporations and the government as part of Seoul's corporate reform program, but government officials and conglomerates voiced support for the takeover process. Analysts said sentiment over the deal was becoming more positive. While some analysts questioned the sense in saving Kia at a time when car plants are operating at just 40 per cent capacity because of shrinking demand, it is also said it's time to expand given the low asset prices, and the merger will increase Hyundai's annual production capacity to 2.4 million vehicles, ranking eleventh in the world. According to the Hong Kong Standard, the award of Kia to Hyundai was hailed by the country's family-run conglomerates yesterday, claiming it was positive for the industry have only two main layers: Hyundai and Daewoo. SHINKWANG INDUSTRY: Starts creditor reconciliation -------------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Shinkwang Industry Company has been allowed by the Suwon District Court to starts its creditor reconciliation procedure. =============== M A L A Y S I A =============== BINA PETRA SDN BHD: Winding-up petition --------------------------------------- Active Hydro Control Sdn. Bhd. had on 29.7.98 presented a winding-up petition against Bina Petra Sdn. Bhd. and it is directed to be heard on 25.11.98. CHIN KENG CONSTRUCTION SDN BHD: Winding-up petition --------------------------------------------------- Atlas Mark Sdn. Bhd. had on 15.9.98 presented a winding-up petition against Chin Keng Construction Sdn. Bhd. and it is directed to be heard on 27.11.98. CHIN YE CONSTRUCTION SDN BHD: Winding-up petition ------------------------------------------------- Preslow Engineering Sdn. Bhd. had on 24.9.98 presented a winding-up petition against Chin Ye Construction Sdn. Bhd. and it is directed to be heard on 10.3.99. ENERYIELD (M) SDN BHD: Winding-up petition ------------------------------------------ Bank Bumiputra (M) Bhd. had on 1.9.98 presented a winding- up petition against Eneryield (M) Sdn. Bhd. and it is directed to be heard on 29.1.99. KENCANA VENTURE SDN BHD: Winding-up petition -------------------------------------------- Public Bank Bhd. had on 2.7.98 presented a winding-up petition against Kencana Venture Sdn. Bhd. and it is directed to be heard on 2.11.98. MAEHUN ELECTRICAL ENGINEERING: Winding-up petition -------------------------------------------------- City Finance Bhd. had on 26.8.98 presented a winding-up petition against Maehun Electrical Engineering Sdn. Bhd. and it is directed to be heard on 1.12.98. TAIPING GROUP: YTL to buy properties from ailing firm ----------------------------------------------------- Construction and power group YTL Corporation may emerge as the "saviour" of financially troubled property group Taiping Consolidated when it agreed to buy properties and possibly participate in Taiping Consolidated's restructuring scheme yesterday. YTL Corp yesterday said it had entered into a sales and purchase agreement to buy three prime properties -- two shopping malls known as Lot 10 and Star Hill and the five- star JW Marriott Hotel -- from Taiping for 323 million Malaysian ringgit (S$137.7 million) in cash. In addition, YTL Corp managing director Francis Yeoh Sock Ping said the group is interested in taking a strategic stake in Taiping "as a vehicle for future business development". However, he said the purchase of a stake in Taiping is subject to the completion of a due diligence and a viable scheme approved by all interested parties of Taiping. Taiping Consolidated secured a six-month court protection on July 30 and is currently trying to put in place a scheme of arrangement with its creditors. Analysts estimate Taiping's debt at some RM600 million, of which RM370 million are short-term. A separate statement by Taiping Consolidated to the Kuala Lumpur Stock Exchange yesterday said the sale of the three properties is the first stage of its restructuring scheme. The second stage will see a capital reduction and subsequent injection of fresh capital into the company, including from YTL should it agree to take a stake in Taiping. TIME ENGINEERING BHD: RESULTS - 30.6.98 --------------------------------------- Time Engineering Bhd. (listed in KLSE) reported a post-tax loss of RM284.121m for the 6 months ended 30.6.98 compared to a post-tax profit of RM31.833m previously. EPS fell 607.7% from RM0.065 to a loss per share of RM0.33. ===================== P H I L I P P I N E S ===================== MUSIC CORP: Still looking for long-term partner ----------------------------------------------- BusinessWorld reports semiconductor firm Music Corp. is still on the lookout for long-term investors. A BusinessWorld source yesterday said the company is planning to lure investors and eventually dilute small "speculative" shareholders. In May this year, Music's planned listing at Nasdaq was delayed due to the shareholder problem. The company's shares are being held in trust by fund managers and custodian banks which reportedly makes it difficult for Music to trace the real shareholders' identity. PHILIPPINE AIRLINES: Planes affected by collection concerns ----------------------------------------------------------- The Philippine Airlines (PAL) choice of planes on its re- opened international service is affected by the fact that it is currently in a dispute over jets that the bank financed. PAL has stated it will use Airbus A340-300 jets on its US routes, rather that Boing 747-400 jets. PAL officials were cited as being reluctant to sent Boeing jets to the United States, as officials might try to reclaim them. The report also noted that PAL and the Export-Import Bank is currently negotiating a solution for this debt. PAL re-launched its domestic service on October 7. ================= S I N G A P O R E ================= ROBINSON & CO: Warnings on results ---------------------------------- Singapore Business Times reports Robinson & Co yesterday warned analysts to expect profit declines in the current fiscal year to June 1999, as group investment income and sales turnover continue to decline in the difficult economic climate. No actual numbers were given. Group chairman Michael Wong Pakshong ruled out any possibility of a capital return to shareholders, something some analysts were hoping for, as some 90 per cent of the group's $321.9 million in shareholder funds at the end of June were in cash and fairly liquid near-cash deposits. Instead, he said the group would be looking into investment opportunities, but he would not give details as to whether they would prefer investing in retail-related businesses, or in physical assets. SUNRIGHT LTD: Results announcement ---------------------------------- Singapore Business Times reports mainboard-listed Sunright Ltd yesterday said net profits dived 40 per cent to $7.3 million for the year to July 31 on higher depreciation charges and interest expense. However, the turnover of the semiconductor test and burn-in services group rose 11 per cent to $178.7 million due to higher test revenues. Earnings per share fell to 5.9 cents from 9.9 cents based on existing 123 million shares, while net tangible assets per share rose to 55.3 cents from 50.2 cents. =============== T H A I L A N D =============== KELOIL-PTT SDN BHD: LPG project expansion put on hold ----------------------------------------------------- The Bangkok Post reports the economic downturn has prompted Keloil-PTT Sdn Bhd, a Malaysian-Thai joint venture, to review its 752-million-baht plan to expand its liquefied petroleum gas facilities in northern Malaysia. Expansion geared to meeting LPG demand in northern Malaysian states will be postponed, said Viset Choonpiban, president of PTT International, a Petroleum Authority of Thailand affiliate that holds 40% in the venture. The partners would wait for a more appropriate time, he said, without giving specific dates. SIAM CHEMICALS: To close Padaeng Siam Industries ------------------------------------------------ The Bangkok Post reports Siam Chemicals Plc yesterday announced plans to close down Padaeng Siam Industries Co and to sell the company's 16.71 per cent stake in South Oxygen Co as part of its programme to restructure its business activities and improve cash flow. In a report to the Stock Exchange of Thailand, S-Chem said the two transactions will not affect its balance sheet given that South Oxygen is a small provincial enterprise and Padaeng Siam Industries had yet to commence operation. The moves will cut the number of S-Chem's subsidiaries to 12 from 14. Pakdee Ksanom, S-Chem's vice president, said the remaining 12 subsidiaries are operating in the areas of chemicals, shipping, marine and construction. For the first half of 1998, S-Chem reported sale revenue of Bt611.14 million and Bt1.2 billion in losses compared with Bt2.39 billion in sales and Bt111.37 million losses for the same period last year. UNICORD PLC: BOT tell creditors to liquidate company ---------------------------------------------------- The Bangkok Post reports the Bank of Thailand said Tuesday that creditors and shareholders should start to liquidate the ailing tuna-producer Unicord Plc, since it has plunged into too deep trouble for debt restructuring to help. Central bank assistant governor Kiettisak Meecharoen said Tuesday that he believed it is too late now to rescue the company. He noted that the company should file for bankruptcy protection and proceed according to the framework to be laid out by the upcoming bankruptcy law. Due to over Bt4-billion in debts and a number of creditors, Unicord is one of 20 Thai companies for whom high-ranking central bank officials are acting as intermediaries for its restructuring process. Kiettisak was assigned to look after Unicord's restructuring process. Unicord, once the country's largest tuna processor, started to default on loan payments in 1994. The company has recorded a negative performance since 1992 after its huge investment in the US-based Bumble Bee Seafoods Inc turned unprofitable. The company earlier this year succeeded in selling the US company but at a lower price than its investment. It had repaid foreign debts to only the Bankers Trust and Heller Finance, its managing director Pornphand Konunthakiet said then. Due to its negative performance, the Stock Exchange of Thailand suspended trading of Unicord shares on Jan 31, 1997. On June 12 this year, the stock was taken off the Thai bourse. 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 * * *