/raid1/www/Hosts/bankrupt/TCRAP_Public/981106.MBX 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      

      Friday, November 6, 1998, Vol. 1, No. 181

                    Headlines


* C H I N A   &   H O N G   K O N G *

CAPITAL ASIA: Revised timetable for capital reorganization
CAPITAL SUCCESS INVESTMENT COMPANY: Winding-up order
CATHAY PACIFIC: Revenues hit big slump
CHINA OCEAN SHIPPING: Restructuring prompts uncertainty
CHIY HING CONTAINER SERVICES: Winding-up order

ECONAWAY TRAVEL SERVICES LIMITED: Winding-up petition
FAIRYOUNG HOLDINGS: Granted stay of debt judgment execution
GANTON COMPANY LIMITED: Winding-up petition
GOLDLAND PRINTING COMPANY: Winding-up order
GUANGDONG INTERNATIONAL: PBOC says Itics to get capital

GZITIC HUALING: PBOC says Itics to get capital lifeline
JADE PROJECT DEVELOPMENT LIMITED: Winding-up order
LONGER CORPORATION LIMITED: Winding-up petition
MASS RESOURCE DEVELOPMENT LIMITED: Winding-up order
PALIBURG HOLDINGS: Paliburg near deal on Regal

POLYLINK TRANSPORTATION LIMITED: Winding-up order
SUN HING CLEANING SERVICE: Winding-up petition
TOMSON PACIFIC: Lai's fate put in hands of jury

* I N D O N E S I A *

BOURAQ INDONESIA AIRLINES: Union responds to layoffs


* J A P A N *

CITIZEN WATCH CO: Results announcement
DAIDO STEEL: Results announcement
JAPAN ENERGY: Warnings on first full-year losses
LONG TERM CREDIT: LTCB likely to need more public funds
MITSUBISHI MOTORS: Set to unveil restructuring plan

MITSUBISHI PLASTICS: Results announcement


* K O R E A *

KIA MOTORS: Creditors accept Hyundai bid to take over Kia
KOREA FIRST BANK: Plan to write off most of future debt
SEOULBANK: Plan to write off most of future debt


* M A L A Y S I A *

A&M PROPERTIES SDN BHD: Winding-up petition
BULLION CORPORATION BHD: Voluntary winding-up
CITRA MUDA SDN BHD: Winding-up petition
G.A. PERKASA SDN BHD: Winding-up petition
MARKAS SDN BHD: Winding-up petition

PEJO ENTERPRISE SDN BHD: Winding-up petition
SENSA BUMI SDN BHD: Winding-up petition
UNIPHOENIX CORPORATION: Releases restructuring plan


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

BOGO-MEDELLIN: Postpones expansion plans
D.M. CONSUNJI: Merger with five affiliates approved
PHIL LONG DISTANCE: Rumors of Southwestern Bell purchase
SAN MIGUEL: Layoffs imminent next year


* S I N G A P O R E *

L&M PRESTRESSING: Disputes winding-up petition


* T H A I L A N D *

BANK OF AYUDHYA: Announces successful placement


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

CAPITAL ASIA: Revised timetable for capital reorganization
----------------------------------------------------------
On 21st October, 1998, the Board announced that the Court
hearing of the summons for directions concerning the
Capital Reduction was fixed at 4th November, 1998. At the
request of the Court, the hearing of the summons for
directions has provisionally been deferred to 12th
November, 1998 which may be subject to further changes,
depending on the Court's diary. The Capital Reorganization
Proposals are conditional upon the confirmation by the
Court of the Capital Reduction, which itself depends upon
the outcome of at least two Court appearances (including
for the hearing of the summons for directions). A further
announcement will be made as soon as practicable to confirm
the anticipated Effective Date and advise the shareholders
of the trading arrangement concerning the New Shares.


CAPITAL SUCCESS INVESTMENT COMPANY: Winding-up order
----------------------------------------------------
A winding-up order notice is hereby given that Capital
Success Investment Company Limited is undergoing a
companies winding-up proceedings (No 610 of 1998) in the
High Court of the Hong Kong Special Administrative Region
court of first instance. The date of order is on October
21, 1998. The date of presentation of petition was August
31, 1998.    


CATHAY PACIFIC: Revenues hit big slump
--------------------------------------
Cathay Pacific said yesterday its passenger revenue for
September 1998 were about 25% below budget. It may be due
to the deterioration in front-end performance, reflecting
an increasing amount of 'trading-down' by frequent business
travellers and a generally soft business market, said
Cathay's general manager for network revenue in the
airline's in-house newspaper. In Hong Kong, the carrier's
revenue from first and business-class passengers were over
30% below budget in September. The outlook is still one of
reasonable local factors but horrible yields, Mr Boulter
said.  


CHINA OCEAN SHIPPING: Restructuring prompts uncertainty
-------------------------------------------------------
Shares in Hong Kong-listed arms of state-run China Ocean
Shipping Co. (Cosco) fell heavily yesterday as
uncertainties loomed over the future of the mainland's
largest shipping company. Reports in Hong Kong said Cosco's
top officials would be reshuffled due to poor management,
the group would be restructured and a government loan worth
two billion yuan frozen.

The Hong Kong arms denied there was an imminent management
shake-up at Cosco. Shares of Cosco Pacific lost 13.7% to
HK$4.4, their biggest one day fall in two months, while
Cosco International fell 8.1% to 90 HK cents. The red-chip
index fell 3.84 %. Bankers are also closely watching a
US$200 million syndicated loan due to close tomorrow for
clues on investor appetite for Cosco.  


CHIY HING CONTAINER SERVICES: Winding-up order
----------------------------------------------
A winding-up order notice is hereby given that Chiy Hing
Container Services Company Limited is undergoing a
companies winding-up proceedings (No 658 of 1998) in the
High Court of the Hong Kong Special Administrative Region
court of first instance. The date of order is on October
21, 1998. The date of presentation of petition was
September 15, 1998.    


ECONAWAY TRAVEL SERVICES LIMITED: Winding-up petition
-----------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Econaway Travel Services Limited by the High Court of
Hong Kong was, on the 26th day of September, 1998,
presented to the said Court by Man Tze Sheung and the
petition is heard on 9th day of December, 1998. Other
creditors who support or oppose the making of the order may
appear at the time of the hearing.  


FAIRYOUNG HOLDINGS: Granted stay of debt judgment execution
-----------------------------------------------------------
According to the SCMP, property developer Fairyong Holdings
yesterday said it had obtained a High Court order for the
stay of execution of a summary judgment which had been
granted to Pacific Foundation for the sum of $15 million
plus interest. Pacific Foundation issued a petition for the
winding up of Fairyoung on November 2. Fairyoung is
appealing to have the summary judgment set aside, and
consequently applied for the stay of execution.


GANTON COMPANY LIMITED: Winding-up petition
-------------------------------------------
Notice is hereby given that a petition for the winding-up
of Ganton Company Limited by the High Court of Hong Kong
was, on the 26th day of September, 1998, presented to the
said Court by Sung Mei Ling and the petition is heard on
9th day of December, 1998. Other creditors who support or
oppose the making of the order may appear at the time of
the hearing.  


GOLDLAND PRINTING COMPANY: Winding-up order
-------------------------------------------
A winding-up order notice is hereby given that Goldland
Printing Company Limited is undergoing a companies winding-
up proceedings (No 673 of 1998) in the High Court of the
Hong Kong Special Administrative Region court of first
instance. The date of order is on October 21, 1998. The
date of presentation of petition was September 21, 1998.    


GUANGDONG INTERNATIONAL: PBOC says Itics to get capital
-------------------------------------------------------
According to the SCMP, People's Bank of China governor Dai
Xianglong said that Beijing is to inject capital into some
troubled international trust and investment corporations
and only a small number would be closed.

However, he could provide no assurances that all Gitic's
foreign creditors would be paid, saying only that the
liquidation process was under way and registered debt would
have priority.


GZITIC HUALING: PBOC says Itics to get capital lifeline
-------------------------------------------------------
According to the SCMP, 50.9 per cent of Gzitic Hualing
Holdings' shares were pledged by its parent Guangzhou
International Trust and Investment Corp (Gzitic) as
securities to obtain loans. Only 6.99 per cent of Gzitic
Hualing shares held by the parent were not pledged as
securities.

Gzitic Hualing chairman Xu Zhi said there is no provision
in any financing or other material agreements of Gzitic
Hualing which requires the controlling shareholder to
maintain a certain percentage of its interests in the
company.

He said the loans did not include a US$30 million facility
arranged by SocGen Asia, on which Gzitic defaulted in
September. He did not say whether the parent had defaulted
on the loans specified and whether any of the shares
mortgaged as securities had been dumped by creditors in an
attempt to minimise losses.

He said it was difficult to say what impact any development
at Gzitic would have but Gzitic Hualing's operations
remained substantially normal. Its shares are expected to
resume trade today.


JADE PROJECT DEVELOPMENT LIMITED: Winding-up order
--------------------------------------------------
A winding-up order notice is hereby given that Jade Project
Development Limited is undergoing a companies winding-up
proceedings (No 554 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on October 21, 1998. The date of
presentation of petition was August 12, 1998.    


LONGER CORPORATION LIMITED: Winding-up petition
-----------------------------------------------
A petition for the winding up of LONGER CORPORATION LIMITED
was presented to the High Court on Oct 30 by Chow Suk Yee
of Room 305, Fu Yuen House, Chuk Yuen South Estate, Wong
Tail Sin, Kowloon, and the said petition is directed to be
heard before the court at 11:00 am on Dec 9, 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 Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong on payment of the
regulated charges for the same.


MASS RESOURCE DEVELOPMENT LIMITED: Winding-up order
---------------------------------------------------
A winding-up order notice is hereby given that Mass
Resource Development Limited is undergoing a companies
winding-up proceedings (No 653 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on October 21, 1998.  
The date of presentation of petition was September 11,
1998.    


PALIBURG HOLDINGS: Paliburg near deal on Regal
----------------------------------------------
The SCMP reported that according to property market
sources, discussions between Paliburg Holdings and a
potential buyer for its 74.8 per cent stake in Regal Hotels
International have reached an advanced stage. An analyst
said this explained why three local banks had extended a
HK$900 million bridging loan which would allow Paliburg to
pay off a US$60 million floating-rate note due today. The
source said Hongkong Bank previously had refused to
reschedule Paliburg's debt.

According to another property analyst, the potential buyer
was performing due diligence on the company and a deal
would be announced possibly within weeks or by the end of
the month. The source said company chairman Mr Y.S. Lo had
come down on the price which was too high at first.


POLYLINK TRANSPORTATION LIMITED: Winding-up order
-------------------------------------------------
A winding-up order notice is hereby given that Polylink
Transportation Limited is undergoing a companies winding-up
proceedings (No 671 of 1998) in the High Court of the Hong
Kong Special Administrative Region court of first instance.
The date of order is on October 21, 1998. The date of
presentation of petition was September 21, 1998.    


SUN HING CLEANING SERVICE: Winding-up petition
----------------------------------------------
Notice is hereby given that a petition for the winding-up
of Sun Hing Cleaning Service Company Limited by the High
Court of Hong Kong was, on the 23rd day of September, 1998,
presented to the said Court by Lee Suk Chun and the
petition is heard on 2nd day of December, 1998. Other
creditors who support or oppose the making of the order may
appear at the time of the hearing.  


TOMSON PACIFIC: Lai's fate put in hands of jury
-----------------------------------------------
According to the SCMP, the fate of former high-flying
stockbroker Arthur Lai Cheuk-kwan and four alleged co-
conspirators is expected to be put in the hands of a jury
today after 81 days of evidence.


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

BOURAQ INDONESIA AIRLINES: Union responds to layoffs
----------------------------------------------------
M2 Communications reports union leader Dahnul Martan
believes that dismissal of around 700 employees by Bouraq
Indonesia Airlines was carried out without clear reasons.
Martan stated that the employees, who have not received pay
from the airline since September, would be prepared for
dismissal if it was demonstrated that the company was
insolvent or had suffered losses.


=========
J A P A N  
=========

CITIZEN WATCH CO: Results announcement
--------------------------------------
The Financial Times reports Citizen, the world's largest
watch manufacturer, said yesterday that the global
financial crisis and instability of the yen would lead to a
halving of pre-tax profits before exceptional this year to
Y7bn.

The warning accompanied a 27 per cent drop in parent net
earnings in the first half, from Y3.41bn to Y2.49bn. The
decline reflected slow sales in watches, electronic
equipment6 and industrial machinery, as well as losses on
the sale of securities holdings.


DAIDO STEEL: Results announcement
---------------------------------
Bloomberg reports shares of Daido Steel Co. fell 4 yen to
164. The world's largest maker of specialty steel reported
a parent net loss of 1.72 billion yen for the half-year
ended Sept. 30, reversing from a profit of 965 million yen
in the year-ago period. That's worse than Toyo Keizai's
forecast of a 1 billion yen loss.


JAPAN ENERGY: Warnings on first full-year losses
------------------------------------------------
The Financial Times reports leading oil group Japan Energy
warned of its first full-year losses. The warnings
highlighted the profitability crisis in Japan's oil sector,
which has been squeezed by a sharp contraction in profit
margins and fierce competition in both petrol stations and
refineries.

Japan Energy suspended its interim dividend after
announcing first-half losses of Y9.89bn on sales of
Y631.65bn. This compares with earnings of Y1.07bn on
turnover of Y731.21bn in the same period last year. In the
full year, the group expects Y5bn in losses, against
earnings of Y6.22bn. The results mark the company's first
mid-term losses in 17 years, and its first full-year
losses.


LONG TERM CREDIT: LTCB likely to need more public funds
-------------------------------------------------------
According to the SCMP, the new president of the newly
nationalised Long Term Credit Bank of Japan, Mr Takashi
Anzai, is likely to need more public funds as it prepares
itself for eventual takeover as some of its lenders would
like to have their money returned. The bank was taken over
by the government last month under a 60-trillion yen
bailout package.

The Bank of Japan last month lent LTCB three trillion yen
through the Deposit Insurance Corp to bolster the bank's
funding and make sure lending and other operations
proceeded smoothly. At LTCB's request, the BOJ yesterday
lent it another 400 billion yen.

Mr Anzai's most pressing task was to staunch the outflow of
funds from the bank and enable it to raise money on its
own. Mr Anzai will have to oversee the sorting of the
bank's loans and decide which borrowers are healthy and
which are not. He and the other new LTCB executives will be
in charge of cleaning up the bank's loan portfolio, which
held 4.62 trillion yen in risky and bad loans at the end of
Sept., which is 19 per cent of all the credit LTCB has
extended. According to both the SCMP and the Hong Kong
Standard, he will also have to find a buyer for the bank
before it loses too many employees and clients for it to be
valuable.

The Hong Kong Standard said that the Bank of Japan is
expected to inject additional loans into LTCB yesterday
after pouring in 3 trillion yen in loans with government
guarantees last month. The actions of previous managers
will come under scrutiny. Japanese Finance Minister Kiichi
Miyazawa said it was likely the 130 billion yen of public
money poured into LTCB in March this year by buying up
preferred shares would now be lost. Corporate clients are
yanking money out of the bank.


MITSUBISHI MOTORS: Set to unveil restructuring plan
---------------------------------------------------
Reuters reports Mitsubishi Motors Corp., faced with heavy
losses and widespread doubts about its prospects, is set to
unveil a restructuring plan on Friday that analysts already
say is unlikely to satisfy. Japanese media and analysts
speculated the plan would include higher debt-reduction
targets, the sale or closure of domestic factories, and
perhaps a new tie-up in the United States with AB Volvo or
Chrysler Corp., which already have links to the company.

But the crisis at Mitsubishi, Japan's fourth-largest
carmaker and its top truck-maker, requires much more
drastic action, perhaps including the sale of its truck
division or pulling out of the United States altogether,
analysts said.

Mitsubishi on Friday will also report its results for the
fiscal half-year to September 30. In May it forecast a 32
billion yen ($273 million) parent current loss, which is
pretax and includes non-operating income, after a 101.85  
billion yen ($870.5 million) consolidated net loss in the
last fiscal year to March 31.


MITSUBISHI PLASTICS: Results announcement
-----------------------------------------
Nikkei News reports Mitsubishi Plastics Inc. announced
Wednesday a pretax loss of 2.4 billion yen for the first
half ended Sept. 30, surpassing the loss of 700 million yen
suffered in the same term the previous year. Sales dipped
8% year on year to 66 billion yen, partly because lower
investment by both the public and private sectors held down  
demand for resin products. Demand for PVC pipe remained
sluggish, although sales of non-vinyl chloride film were
steady. The company will likely suffer a pretax loss of 1.5
billion yen for the full fiscal year, slightly less than
the 1.4 billion yen loss posted in fiscal 1997.


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

KIA MOTORS: Creditors accept Hyundai bid to take over Kia
---------------------------------------------------------
Kyodo News reports creditor banks of South Korea's bankrupt
Kia Motors Corp. and its affiliate Asia Motors Co. decided
Thursday to accept Hyundai Motor Co.'s bid to take over the
debt-stricken companies, the Korea Development Bank (KDB)
said. The decision was made at a meeting of the 28 creditor
banks held at the main office of KDB, one of Kia's major
creditor banks.

While agreeing to accept Hyundai's demand of debt write-
offs, the creditors decided to ask Hyundai to lower its
demands of debt write-offs to 7.17 trillion won from 7.3
trillion won (5.5 billion dollars) out of Kia's total debts
estimated at 9,079 billion won (6.98 billion dollars).

Hyundai, the country's largest auto maker, won the third
international auction for Kia and Asia Motors last month
after requesting the least amount of debt write-offs.

Two other domestic auto makers -- Samsung Motors Inc. and
Daewoo Motor Co. -- and Ford Motor Co. of the United States
participated in the auction. With a green light issued for
the takeover, Hyundai will take procedural steps to
complete the acquisition in March next year.


KOREA FIRST BANK: Plan to write off most of future debt
-------------------------------------------------------
A report on the Hong Kong Standard says that South Korea
plans to write off most of the future debt of troubled
Seoulbank and Korea First Bank to make a sale of the two
banks more attractive.

The government will also keep a nearly 47 per cent stake in
the banks in order to give them better creditworthiness. A
finance ministry official said this would allow each of the
banks to issue 1.5 trillion won in new shares to foreign
investors.

He said that the government and the International Monetary
Fund agreed to push the original November 15 auction
deadline for the two banks to the end of January and plan
to invite international bids to privatise the two banks at
around the end of December. He expressed confidence in
the success of the bidding following the dramatic offers
made recently.

He also said the government would guarantee 70 to 80 per
cent of the bad debt that might appear over the next three
years on the books of Seoulbank and Korea First.


SEOULBANK: Plan to write off most of future debt
------------------------------------------------
A report on the Hong Kong Standard says that South Korea
plans to write off most of the future debt of troubled
Seoulbank and Korea First Bank to make a sale of the two
banks more attractive.

The government will also keep a nearly 47 per cent stake in
the banks in order to give them better creditworthiness. A
finance ministry official said this would allow each of the
banks to issue 1.5 trillion won in new shares to foreign
investors.

He said that the government and the International Monetary
Fund agreed to push the original November 15 auction
deadline for the two banks to the end of January and plan
to invite international bids to privatise the two banks at
around the end of December. He expressed confidence in
the success of the bidding following the dramatic offers
made recently.

He also said the government would guarantee 70 to 80 per
cent of the bad debt that might appear over the next three
years on the books of Seoulbank and Korea First.


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

A&M PROPERTIES SDN BHD: Winding-up petition
-------------------------------------------
Malayan Banking Bhd on 10/9/98 petitioned for the winding-
up of A&M Properties Sdn Bhd. The petition is directed to
be heard on 15/12/98.


BULLION CORPORATION BHD: Voluntary winding-up
---------------------------------------------
The members of Bullion Corporation Bhd on 30/10/98
petitioned for the winding-up of the company. Creditors are
requested to submit their claims before 30/11/98.


CITRA MUDA SDN BHD: Winding-up petition
---------------------------------------
Boral Concrete (M) Sdn Bhd on 24/9/98 petitioned for the
winding-up of Citra Muda Sdn Bhd. The petition is directed
to be heard on 29/1/99.


G.A. PERKASA SDN BHD: Winding-up petition
-----------------------------------------
Prodeal Sdn Bhd on 23/7/98 petitioned for the winding-up of
G.A. Perkasa Sdn Bhd. The petition is directed to be heard
on 20/11/98.


MARKAS SDN BHD: Winding-up petition
-----------------------------------
Prodeal Sdn Bhd on 13/7/98 petitioned for the winding-up of
Markas Sdn Bhd. The petition is directed to be heard on
29/1/99.


PEJO ENTERPRISE SDN BHD: Winding-up petition
--------------------------------------------
Boral Plasterboard (M) Sdn Bhd on 10/9/98 petitioned for
the winding-up of Pejo Enterprise Sdn Bhd. The petition is
directed to be heard on 18/12/98.


SENSA BUMI SDN BHD: Winding-up petition
---------------------------------------
Cartell Construction & Trading Sdn Bhd on 28/7/98
petitioned for the winding-up of Sensa Bumi Sdn Bhd. The
petition is directed to be heard on 13/1/99.


UNIPHOENIX CORPORATION: Releases restructuring plan
---------------------------------------------------
Singapore Business Times reports Uniphoenix Corporation has
proposed a restructuring plan to stem losses and to
resuscitate itself. The company, which has been under court
protection from creditors, said it would undertake a
capital reduction exercise. Every 1,000 shares will be
reduced to 33 shares, slashing the company's paid-up
capital to 8.95 million Malaysian ringgit (S$3.8 million)
from RM271.13 million.

This will raise RM262 million, which will reduce the
company's losses to RM156 million from RM419 million as at
March 31, 1998. Its reserves of RM92.46 million will be
written off to reduce those losses further to RM64 million,
Uniphoenix told the stock exchange.

The company will also be restructured -- a new company,
Profile, will become the holding company of the group, and
will take over the listing status. After the exercise,
Uniphoenix will be a wholly-owned subsidiary of Profile,
and the paid-up capital of Profile will comprise 9.047
million shares of RM1 each.

Uniphoenix also plans to cut a deal with its creditors.
Secured creditors, who are owed RM105.84 million, will be
asked to waive all interest accrued after March 31, 1998,
and write off 20 per cent of their outstanding principal
debt. They will be asked to convert the remaining 80 per
cent to new shares. Unsecured creditors will be asked to
waive all interest accrued and to write off 80 per cent of
their principal debt. Of the remainder, half will be paid
with new shares and the other half, loan stocks.


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

BOGO-MEDELLIN: Postpones expansion plans
----------------------------------------
The management of listed sugar milling firm Bogo-Medellin
Milling Co., Inc. will "indefinitely postpone" the planned
restructuring and expansion of the company due to the
prevailing economic crisis which continues to hamper  
investment opportunities in the country.

A company official told BusinessWorld yesterday that Bogo-
Medellin has requested the Philippine Stock Exchange (PSE)
to lift the suspension of the trading of its shares since
it will not proceed with the said projects. PSE chief
operating officer Rafael L. Llave, in response to the
company's request, yesterday said the local bourse will
lift the suspension on Bogo-Medellin's trading effective
November 4, 1998. The sugar firm requested for a voluntary
suspension last year after it decided to engage in a
restructuring plan involving the spin off of some of the  
company's assets to a wholly owned subsidiary.


D.M. CONSUNJI: Merger with five affiliates approved
---------------------------------------------------
BusinessWorld reports the Securities and Exchange
Commission (SEC) recently approved the application of
construction firm D.M. Consunji, Inc. to consolidate its
affiliate, Freyssinet Philippines, Inc. and five other
companies. Freyssinet Philippines is a 30%-owned affiliate
of D.M. Consunji which in turn holds the contracting
business of DMCI Holdings, Inc. The other firms that will
be merged are: Pacopandana Construction and Development
Corp., Freyssinet Manila, Inc., Freyssinet Glassfiber &
Lightweight Concrete, Inc., Freyssinet Post Tensioning &
Systems, Inc., and Freyland  Properties, Inc. With the
merger, holding firm Freyssinet Philippines will be
handling the various products of the merged affiliates.


PHIL LONG DISTANCE: Rumors of Southwestern Bell purchase
--------------------------------------------------------
The Associated Press reports Philippine Long Distance
Telephone Co., the country's largest telecommunications
company, confirmed rumors Wednesday that a second foreign
corporation, U.S.-based Southwestern Bell, is interested in
purchasing a large stake in it. Company officials said
Southwestern Bell has recently completed an initial
evaluation of PLDT, but a formal offer has not yet been
made. Southwestern Bell is the regional telephone company
owned by SBC Communications Inc., based in San Antonio,
Texas.

Hong Kong-based holding group First Pacific Co. announced
early this week an acquisition of an undisclosed amount of
PLDT stock. It has said it's willing to talk with another
investor group, but wants management control. First Pacific
is trying to intensify its presence in Southeast Asia. Its
Philippine subsidiary, Smart Communications Inc., already
operates the largest cellular phone network in the
Philippines, as well as basic telephone lines.


SAN MIGUEL: Layoffs imminent next year
--------------------------------------
San Miguel Corp plans to pare its work force to further
improve efficiency, Chairman Eduardo Conjuangco Jr. said.
The Philippine food and beverage company hopes to start
implementing the program by early next year. Mr Cojuangco
didn't say how many employees will be affected by this
program. An in-house committee was formed to study how best
to implement the program. Mr Cojuangco said San Miguel may
sell its 21.3% stake in Australia's Coca-Cola Amatil Ltd.
but only when market conditions improve.


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

L&M PRESTRESSING: Disputes winding-up petition
----------------------------------------------
Singapore Business Times reports a wholly-owned subsidiary
of L&M Group Investments has been served a winding-up
petition, the group said yesterday. On Oct 12, Yian Sin-
Kenhon Construction Pte Ltd presented its petition against
L&M Prestressing (LMP) to the High Court, L&M said in a
statement to the stock exchange. The petition was for the
sum of $90,722.21.

LMP has "firmly disputed" its liability on this sum, citing
its legal rights under a contract with Yian Sin. On Oct 28,
LMP successfully applied to the High Court for an
injunction to restrain the advertising or publication of
the petition in the local papers and the government
gazette, L&M said.

On Tuesday, LMP applied for the petition to be struck out.
This hearing has been set for Nov 9. LMP also has a
"legitimate claim" against Yian Sin for damages due to a
breach of contract, L&M said. Earlier this week, LMP said
it had won a $11.7 million contract from Stamford Tyres to
build a four-storey warehouse at Lok Yang Way.


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

BANK OF AYUDHYA: Announces successful placement
-----------------------------------------------
The Bangkok Post reports Bank of Ayudhya yesterday
announced the successful placement of subordinated
debentures worth eight billion baht on the first
subscription day.

The bank had originally planned to place debentures worth
four billion baht on Tuesday, but demand proved so high
that the board approved a second batch worth four billion
baht.

With the new debt issues, the Bank of Ayudhya's capital as
a percentage of loans has jumped by two percentage points
to more than 11%.


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.

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