/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/981110.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 Tuesday, November 10, 1998, Vol. 1, No. 183 Headlines * C H I N A & H O N G K O N G * BENEFUN INTERNATIONAL: Results announcement BURWILL HOLDINGS: Settles property dispute CA PACIFIC: Broker payouts top $600m CHARK FUNG SECURITIES: Broker payouts top $600m CHI CHEUNG INVESTMENT: Fair Eagle drops litigation CHINA CONSTRUCTION BANK: Outstanding loans reach 1.14b yuan CITIC PACIFIC: Tries to reassure investors KWONG ON BANK: In takeover talks with Dao Heng Bank FAIRYOUNG HOLDINGS: Fairyoung chairman reinstated FOREGROUND SECURITIES: Broker payouts top $600m FORLUXE SECURITIES: Broker payouts top $600m INTERFORM CERAMICS: Holds talks over loan agreement KIA MOTORS: Court rules inter-subsidiary payments no good KPS VIDEO CHAIN: Eight keen on buying KPS chain PALIBURG HOLDINGS: Facility lightens load on Paliburg TAK WING INVESTMENTS: Still in talks on debt and equity TOMSON PACIFIC: Arthur Lai walks free * I N D O N E S I A * PT ASTRA INTERNATIONAL: Proposed repayment to creditors * J A P A N * MITSUBISHI MOTORS: Major restructuring amid losses TOSHIBA CORP: Vast restructuring proves good for firm * K O R E A * DONG-AH CONSTRUCTION: Banks won't cooperate with workout HANGUK CABLE TV: Starts creditor reconciliation KOREA DEVELOPMENT BANK: Seeks extra capital to ease debt KYUNGHYANG CONSTRUCTION: Completes creditor reconciliation SAMICK CONSTRUCTION: Bankruptcy notice SHINWON TELECOM: Starts creditor reconciliation WOOBANG CO: Workout plan disapproved * M A L A Y S I A * HIBURAN MEGAH BARU SDN BHD: Voluntary winding-up HUA DOR REALTY SDN BHD: Voluntary winding-up JASATERA BHD: Results - 31/7/98 JUAN KUANG (M) INDUSTRIAL BHD: Results - 31/7/98 KILANG PAPAN SERIBU DAYA BHD: Results - 31/7/98 KONG HING ROLLING SHUTTER SDN BHD: Winding-up petition MAJURMAS SDN BHD: Winding-up petition PERAMU JAYA TRADING SDN BHD: Winding-up petition PERFECT FOOD INDUSTRIES BHD: Results - 31/7/98 PRIME ORCHARD SDN BHD: Winding-up petition PRUDENT CONCEPTS SDN BHD: Winding-up petition * P H I L I P P I N E S * PHILIPPINE AIRLINES: Cathay in $585m bid for PAL * S I N G A P O R E * KEPPEL CORP: Mixed reaction on cost-cutting announcement * T H A I L A N D * ALPHATEC ELECTRONICS: Alphatec's restructuring plan filed DUSIT THANI: Plans to sell stake to Australian group TELECOMASIA: Buys more time on restructuring plan ================================= C H I N A & H O N G K O N G ================================= BENEFUN INTERNATIONAL: Results announcement ------------------------------------------- Benefun International, which has recently sold its right to operate the Benetton apparel retail store chain in Hong Kong for $6 million, yesterday unveiled a $140.95 million attributable loss for the year to June. That compares with a profit of $65.35 million last year. Loss per share was 35.3 cents against the per-share earnings of 21.2 cents last year. BURWILL HOLDINGS: Settles property dispute ------------------------------------------ Burwill Holdings has settled a property litigation for the return of a $61.8 million deposit to G-Prop Holdings by agreeing to return just $21 million. The action was brought over Burwill's proposed sale of the entire issued share capital of Camety, whose principal asset was In's Square shopping arcade in Mongkok. G-Prop's deposit was part payment of the $206 million consideration. However, the deal was not completed. CA PACIFIC: Broker payouts top $600m ------------------------------------ According to the SCMP and the Hong Kong Standard, the stock exchange ruling council yesterday approved payments of up to $150,000 per client, and the exchange compensation fund is facing an expected payout of $600 million to clients of four collapsed brokerages - Forluxe Securities, Foreground Securities, Chark Fung Securities and CA Pacific Securities. However, the council decided the collapses were exceptional cases and in future all clients of a defaulting broker will get only $8 million in compensation per broker, in line with existing rules and the cap will only be lifted in exceptional cases. The exchange has received 5,212 claimants from CA Pacific, 2,200 claims from Chark Fung Securities' clients, 440 claims from Forluxe Securities and 62 claims from Foreground. According to the SCMP, the CA Pacific package will cover 70 per cent of the 5,212 claimants. According to the Hong Kong Standard, the exchange will compensate the clients of all members, no matter whether they hold cash accounts or margin accounts, but priority will be given to the processing of the claims involving cash accounts. CHARK FUNG SECURITIES: Broker payouts top $600m ----------------------------------------------- According to the SCMP and the Hong Kong Standard, the stock exchange ruling council yesterday approved payments of up to $150,000 per client, and the exchange compensation fund is facing an expected payout of $600 million to clients of four collapsed brokerages - Forluxe Securities, Foreground Securities, Chark Fung Securities and CA Pacific Securities. However, the council decided the collapses were exceptional cases and in future all clients of a defaulting broker will get only $8 million in compensation per broker, in line with existing rules and the cap will only be lifted in exceptional cases. The exchange has received 5,212 claimants from CA Pacific, 2,200 claims from Chark Fung Securities' clients, 440 claims from Forluxe Securities and 62 claims from Foreground. According to the SCMP, the CA Pacific package will cover 70 per cent of the 5,212 claimants. According to the Hong Kong Standard, the exchange will compensate the clients of all members, no matter whether they hold cash accounts or margin accounts, but priority will be given to the processing of the claims involving cash accounts. CHI CHEUNG INVESTMENT: Fair Eagle drops litigation -------------------------------------------------- According to the SCMP, Chi Cheung Investment, which is indirectly held by debt-ridden Paliburg Holdings, is selling properties to help reduce some of its parent's HK$6 billion debt, market sources said. The company recently reported losses of HK$316 million for the first six months of the year. It is 74.06 per cent owned by Rapid Growth, which in turn is 50 per cent owned by Paliburg which said it was making a HK$400 million provision to cover losses incurred by Chi Cheung. CHINA CONSTRUCTION BANK: Outstanding loans reach 1.14b yuan ----------------------------------------------------------- The outstanding loans of China Construction Bank, one of the country's Big Four state-owned commercial banks, have reached 1.14 trillion yuan. No comparative figure was given. Xinhua news agency quoted a bank spokesman as saying it had completed 81% of its lending targets for this year. Loans to small- and medium-sized enterprises saw a sharp lending to the infrastructure sector aimed at helping to spur economic growth, Xinhua said. CITIC PACIFIC: Tries to reassure investors ------------------------------------------ Citic Pacific managing director Henry Fan Hung Ling yesterday sought to reassure investors, saying the company was in sound financial health and had no immediate plans for cash calls. He said that the management, including chairman Larry Yung and himself, had not sold any shares in the company recently. He said the company had sufficient cash flow for operations through recurrent income from infrastructure and other business. However, in view of recent financial crisis, Citic Pacific has slowed its expansion plan. The group rescheduled plans for 2.3 million square foot township in Discovery Bay, saying the project would be developed in phase. Mr Fan said Citic Pacific's borrowing costs had not increased as the firm had not raised new loans. Its interest expenses had eased slightly due to the stabilization in interest rates. KWONG ON BANK: In takeover talks with Dao Heng Bank --------------------------------------------------- Dao Heng Bank said yesterday it was in preliminary talks to acquire a controlling stake in Kwong On Bank, but an agreement had not been reached. Dao Heng Bank managing director Kwek Leng-hai said the bank had been approached by Kwong On. FAIRYOUNG HOLDINGS: Fairyoung chairman reinstated ------------------------------------------------- According to the SCMP and the Hong Kong Standard, John Chan Boonning has resumed his duties as chairman and director of his 58.3 per cent owned-Fairyoung Holdings from last Saturday, after criminal charges against him were dropped on June 18. The directors had found all charges against Mr Chan were cleared and he had been released from all conditions of police bail on August 24. Mr Chan was arrested on March this year and had been charged on three counts of theft. He was alleged to have stolen $81 million from a wholly owned subsidiary of Pacific Ports Co, which is 43 per cent owned by Fairyoung. He stepped down as chairman shortly after the arrest. The alleged fraud resulted in the sale of Fairyoung's stake in Pacific Ports to a New World Infrastructure and a private company linked closely to Macau gambling magnate Stanley Ho Hung-sun for $412 million. It also triggered cash flow problems at Fairyoung as a bank creditor demanded the repayment of a $4.5 million loan without delay. Fairyoung had liabilities of $340 million on last December 31. According to the Hong Kong Standard, the company yesterday said its directors decided on Thursday to let Mr Chan resume his duties and he resumed work on Saturday. A director of the company said the move was prompted by the present difficult financial situation. Police are continuing their investigation of Mr Chan. In a case other than the above mentioned alleged $81 million fraud, the group alleged that he used $34 million in company funds between Jan 22 and Feb 27 to buy Pacific Ports Company shares through a subsidiary, Both Win, without authorisation from the shareholders. Both Fairyoung Post Investments and Both Win are wholly owned subsidiaries of Pacific Ports Company, which was 43.71 per cent held by the Fairyoung group prior to its disposal on May 20, 1998. Pacific Ports Company is a holding company with investments in port facilities on the mainland. The company said Mr Chan had made an undertaking to the firm that should he be formally charged by the police at any subsequent time, he will refrain from his active duties as board chairman and director. FOREGROUND SECURITIES: Broker payouts top $600m ----------------------------------------------- According to the SCMP and the Hong Kong Standard, the stock exchange ruling council yesterday approved payments of up to $150,000 per client, and the exchange compensation fund is facing an expected payout of $600 million to clients of four collapsed brokerages - Forluxe Securities, Foreground Securities, Chark Fung Securities and CA Pacific Securities. However, the council decided the collapses were exceptional cases and in future all clients of a defaulting broker will get only $8 million in compensation per broker, in line with existing rules and the cap will only be lifted in exceptional cases. The exchange has received 5,212 claimants from CA Pacific, 2,200 claims from Chark Fung Securities' clients, 440 claims from Forluxe Securities and 62 claims from Foreground. According to the SCMP, the CA Pacific package will cover 70 per cent of the 5,212 claimants. According to the Hong Kong Standard, the exchange will compensate the clients of all members, no matter whether they hold cash accounts or margin accounts, but priority will be given to the processing of the claims involving cash accounts. FORLUXE SECURITIES: Broker payouts top $600m -------------------------------------------- According to the SCMP and the Hong Kong Standard, the stock exchange ruling council yesterday approved payments of up to $150,000 per client, and the exchange compensation fund is facing an expected payout of $600 million to clients of four collapsed brokerages - Forluxe Securities, Foreground Securities, Chark Fung Securities and CA Pacific Securities. However, the council decided the collapses were exceptional cases and in future all clients of a defaulting broker will get only $8 million in compensation per broker, in line with existing rules and the cap will only be lifted in exceptional cases. The exchange has received 5,212 claimants from CA Pacific, 2,200 claims from Chark Fung Securities' clients, 440 claims from Forluxe Securities and 62 claims from Foreground. According to the SCMP, the CA Pacific package will cover 70 per cent of the 5,212 claimants. According to the Hong Kong Standard, the exchange will compensate the clients of all members, no matter whether they hold cash accounts or margin accounts, but priority will be given to the processing of the claims involving cash accounts. INTERFORM CERAMICS: Holds talks over loan agreement --------------------------------------------------- According to the SCMP, Interform Ceramics Technologies has confirmed it is in discussions with its bankers for a loan restructuring but no standstill agreement has been reached. It said since March it had been negotiating with a few potential investors through its financial advisers for a possible capital injection. The directors understand that those potential investors were making their own assessments about the company, but no agreement had yet been reached. KIA MOTORS: Court rules inter-subsidiary payments no good --------------------------------------------------------- The Korea Times reported that the Seoul District Court has ruled that Kia Motors Corporation is not obliged to make good on the payment guarantees made on its construction subsidiary, Kisan. The ruling stated that it was legally appropriate for Kia Motors to refuse to pay for its guarantee on Kisan because the guarantee was made six months before Kia's application for court receivership. It was also noted that Kia's payment guarantee on Kisan's debt was made "unilaterally" without the creditor receiving any reward for the guarantee. This ruling relates to a lawsuit filed by First Merchant Banking, a Kia Group creditor, that sought 70.5 billion won based on a Kia guarantee of Kisan's debt. The report also stated that there is a total of approximately 900 billion won in loans made to affiliates of the bankrupt Kia Motors Company and its sister bus and truck maker, Asia Motors Company, which were guaranteed by these automotive manufacturers. Court observers cited in the report stated that similar suits pending against Kia and Asia will most likely receive the same ruling. KPS VIDEO CHAIN: Eight keen on buying KPS chain ----------------------------------------------- According to the SCMP and the Hong Kong Standard, receivers Ernest & Young said yesterday that eight potential buyers emerged for the video chain KPS, among whom are retail and entertainment, local and overseas-based companies. The receivers said it was vital to find a buyer soon because of the huge overheads of the 38 stores which command 230,000 customers. They said a rescue plan will be finalised within a week and they believe they have a month to find an investor to save the business. Potential buyers will have to consider paying out any customer still holding prepaid coupons. KPS has assets of $175 million. Its main liabilities include rental on its 38 properties, bank loans, loans from its parent company and debts to suppliers. The Labour Department received 420 applications from employees for the insolvency funds. According to the Hong Kong Standard, former KPS operations director Kerry Lee Wai-siu claimed KPS management had reserved $12m for employees' compensation but the receivers said they still had to determine if such a sum of money existed. The SCMP said that workers had been paid for last month but Ernst & Young dismissed rumors that the company had diverted $12 million for staff payouts. Workers might have to recover lost wages from the Protection of Wages on Insolvency Fund, a pool of public money. Employees were considered preferred debtors. According to the SCMP, KPS troubles began after rapid expansion and the collapse of a pre-paid coupon scheme. Several customers took the company to the small claims court and the Consumer Council helped another 800 launch a class action for $500,000 from defunct coupons. A forced closure was averted after the company sold off its Taiwan subsidiary to raise additional funds and proceeded with deadlines for coupons. PALIBURG HOLDINGS: Facility lightens load on Paliburg ----------------------------------------------------- According to the SCMP, Century City group of companies took a step towards solving its financial troubles after associate Paliburg Holdings announced it had obtained a HK$600 million loan facility to pay a US$60 million floating rate note issue that matured last Friday. Paliburg said the facility, available up to April 30 next year, was granted by its principal bankers principally of the purpose of repaying the issue in full and would also provide some funds to meet other financial obligations. Proceeds from sale of units in the group's Park Royale project in Yuen Long must be used for repayment. The company's 74.8 per cent stake in Regal Hotels International Holdings, previously charged as security for the note issue, is now provided as security for the facility. The company said with the granting of the facility and the repayment of the note issue, it would be able to arrange other new credit lines to ease its liquidity problems. It also said its HK$262.25 million contingent liability, being a guarantee of a loan to its 50 per cent-owned Rapid Growth Holdings, which has a 72.13 per cent interest in locally- listed Chi Cheung Investment. It said it was considering the advice by its lending bank to extend its obligation. Paliburg said directors were continuing talks with its bankers and other institutional lenders in an effort to stabilise its debt positions pending the completion of adequate asset sales to reduce its debt level. It said it had not received any specific offer or indicative terms for the purchase of its holding in Regal Hotels until the negotiation expired on Nov 3 and it was now free to pursue other potential offers. TAK WING INVESTMENTS: Still in talks on debt and equity ------------------------------------------------------- As stated in the announcement of the Company dated 5th September 1998, the Company is taking a number of measures to improve its working capital position, including actively seeking new debt and equity capital and disposing of the Group's assets. There are on-going negotiations in relation to the disposal of the Group's assets and the injection of new equity and debt capital, but the Company has not reached any binding agreement in relation to the injection of new debt or equity capital or realisation of the Group's assets. Furthermore, as stated in the said announcement, the controlling shareholder has entered into negotiations for the sale of his controlling interest in the Company. The directors of the Company have been informed by the controlling shareholder of the Company that no binding agreement has been reached regarding the sale of a controlling interest in the Company or any capital or business injection into the Company. Discussions with the bankers of the Group on a standstill are continuing. TOMSON PACIFIC: Arthur Lai walks free ------------------------------------- According to the SCMP, Arthur Lai Cheuk-kwan and his four co-defendants were unanimously cleared yesterday of all charges in their Tomson Pacific fraud trial. Tomson Pacific bought 34.5 per cent of shares of the World Trade Centre Group, formerly known as Bond Corporation International. It was alleged that in order to avoid a general offer to shareholders, a further 31.5 per cent were placed with parties which appeared to be independent but were secretly linked to Tomson. Arthur Lai was also acquitted of accepting bribes amounting to $26.4 million and A$2 million for introducing Tomson to World Trade Centre Group and helping to place additional shares. Former Tomson Pacific executive David Tong Cun-lin was exonerated on the joint conspiracy charge and for offering the $26.4 million fee. Arthur Lai's brother Raymond Lai Chik-fan and former Standard Chartered securities staff member Peter Mou Chi-luen were acquitted of aiding and abetting the alleged bribes. Former movie actress Jade Hsu Jye was cleared of the joint conspiracy charge with the four other defendants. ================= I N D O N E S I A ================= PT ASTRA INTERNATIONAL: Proposed repayment to creditors ------------------------------------------------------- The Asian Wall Street Journal reported that PT Astra International, Indonesia's largest assembler of automobiles, has proposed a two step plan to restructure its foreign debt. Astra announced last month that business has fallen so much that it had stopped paying interest on about $1.4 billion in loans. Using the $70 million proceeds from the recent sale of its microchip manufacturing unit, Astra is offering its creditors a proposal to buy back $70 million in debt via a "Dutch auction." This means that creditors bid on the discount rate for repurchasing the debt. This is an offer for creditors who have a short term view and would prefer to get out. The remaining debt will be split into three separate segments at a predetermined ratio. Fourteen percent of this remaining debt would have a three year term with quarterly interest payments and six month principle payments. The repayments on this segment of the remaining debt would begin two years after the restructuring agreement is approved. The largest part (78 percent) of the remaining debt would be converted into a six year term loan, with a one year grace period on interest payments and three years on principle payments. The final 8 percent of the remaining debt will be converted into zero coupon bonds, with detachable warrants for eight years and an associated sinking fund which Astra would be obliged to contribute to in order to assure bankers that the bonds would be repaid at maturity. Additionally, a 250 billion rupiah secured bond is planned to be repurchased when it comes due in February 1999 outside of this restructuring plan. The article also reported that the President Director of Astra stated that the company currently has no excess cash flow, and that it is dipping into its cash reserves to cover operational costs. ========= J A P A N ========= MITSUBISHI MOTORS: Major restructuring amid losses -------------------------------------------------- Mitsubishi Motors Corp., in an attempt to restore profitability in an increasingly competitive auto industry, announced a major restructuring Friday after reporting continued losses for its first half. The restructuring includes the closing an consolidation of some plants in Japan, layoffs in the US and Thailand, cutbacks in product offerings and the sale of a Thai factory. But investors and analysts, who have soured on most Japanese auto makers, weren't encouraged by the news. Mitsubishi Motors shares fell 2% to 250 yen each, down five yen, in Tokyo trading Friday after the company reported a first-half parent pretax loss of 18 billion yen and forecast a parent net loss of nine billion yen for the full year, which runs to the end of March 1999. The company has two trillion yen in debt and has come to rely on help from banks other companies in the once-mighty Mitsubishi group. The company plans to cut its debt by 700 billion yen in three years and reiterated its previously announced goal of reducing costs by 350 billion yen over the next period. Mitsubishi President Katsuhiko Kawasoe said that Mitsubishi is in talks with a number of other auto makers about possible tie-ups, although he declined to provide further details. TOSHIBA CORP: Vast restructuring proves good for firm ----------------------------------------------------- The Financial Times reports Shares of Toshiba, the electronics giant, have outperformed Tokyo's Topix index by more than 30 per cent since September because of the group's bold restructuring plans forwarded by the group's chief executive, Taizo Nishimuro. The plan, 18 months in the making, involve layoffs of 2,500 by the year's end and an additional 4,000 next year. Managers' salaries and spending on semiconductors will be reduced this year from Y140bn to Y120bn. The restructuring plan that has attracted the most attention, however, is the group's portfolio of businesses. Mr. Nishimuro has announced a string of unexpected deals, involving businesses as diverse as glass, photocopiers and air conditioning. ========= K O R E A ========= DONG-AH CONSTRUCTION: Banks won't cooperate with workout -------------------------------------------------------- The Korean language Maeil Kyungje reports that the Dong Ah Construction Company's workout program encountered a problem when some of its creditors, i.e., 9 out of 11 the involved merchant banks, refused to cooperate by neither writing off the company's debt nor converting their debt into equity. It was also reported in this article that merchant banks of other companies under workout programs may also raise objections since the workout programs' details are decided upon based on the approval of 75% of the creditors. This means that the minority merchant banks' voices were not necessarily reflected in the decisions related to the details approved in the workout programs. HANGUK CABLE TV: Starts creditor reconciliation ----------------------------------------------- The Taechon District Court advertised in the Korean language Maeil Kyungje that the Hanguk Cable TV Taechon Broadcasting Co. started its creditor reconciliation procedure. The creditors have until December 5th, 1998 to file their claims. The company's address is 24-9 Yongchon- dong, Tong-gu, Taechon and the president is Mr. Ahn Heung- gun. KOREA DEVELOPMENT BANK: Seeks extra capital to ease debt -------------------------------------------------------- According to the SCMP and the Hong Kong Standard, Korea Development Bank (KDB) has asked the government for a 1.7 trillion won capital increase to shore up its ravaged finances. Before the injection, the bank planned to write off four fifths of its paid in capital to help cover an estimated US$10 billion of bad loans. According to the SCMP, KDB, which lends money to some of Korea's biggest firms, had 72.4 trillion won of loans outstanding in Sept. Analysts said a fifth of these may be hard to collect as the recession drove about 2,500 companies a month bankrupt in the first 10 months of the year. The bank lost 1.31 trillion won in the first nine months because of bad debt. It lost 54.6 billion won last year. It declined to give its bad-debt ratio. The government had earmarked an extra three trillion won of capital for KDB this year, an amount which will now rise to 4.72 trillion won. KYUNGHYANG CONSTRUCTION: Completes creditor reconciliation ---------------------------------------------------------- The Seoul District Court advertised in the Korean language Maeil Kyungje that the Kyunghyang Construction Company's creditor reconciliation procedure was completed. The company's address is 87-9 Yeonhee-dong, Seodaemun-gu, Seoul and the president is Mr. Yoo Chung-wook. SAMICK CONSTRUCTION: Bankruptcy notice -------------------------------------- The Korean language Maeil Kyungje reports that the Samick Construction Co., one of the top apartment makers of the country, went bankrupt on November 7, 1998. SHINWON TELECOM: Starts creditor reconciliation ----------------------------------------------- The Taechon District Court advertised in the Korean language Maeil Kyungje that the Shinwon Telecom Co. started its creditor reconciliation procedure. The creditors have until December 5th, 1998 to file their claims. The company's address is 24-9 Yongchon-dong, Tong-gu, Taechon and the president is Mr. Ahn Heung-gun. WOOBANG CO: Workout plan disapproved ------------------------------------ The Korean language Maeil Kyungje reports that the Woobang Company's creditors have disapproved the company's workout plans. The company's creditors gathered at the Bank Association Hall on November 5th but disapproved the workout plans for the Woobang Co. that were prepared by the Seoul Bank. The creditors have decided to meet again on December 15th to make the final decision on the company's workout. =============== M A L A Y S I A =============== HIBURAN MEGAH BARU SDN BHD: Voluntary winding-up ------------------------------------------------ The members of Hiburan Megah Baru Sdn Bhd on 2/11/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 27/1/99. HUA DOR REALTY SDN BHD: Voluntary winding-up -------------------------------------------- The members of Hua Dor Realty Sdn Bhd resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 7/12/98. JASATERA BHD: Results - 31/7/98 ------------------------------- Jasatera Bhd (listed on the KLSE) reported a post-tax loss of RM89.702mil for the 6months ended 31/7/98, compared to a post-tax profit of RM4.723mil previously. EPS fell 1999% from RM0.24 to a loss per share of RM4.49 JUAN KUANG (M) INDUSTRIAL BHD: Results - 31/7/98 ------------------------------------------------ Juan Kuang (M) Industrial Bhd (listed on the KLSE) reported a post-tax loss of RM7.379mil for the 6months ended 31/7/98, compared to a post-tax profit of RM6.97mil previously. EPS fell 198% from RM0.16 to a loss per share of RM0.16. KILANG PAPAN SERIBU DAYA BHD: Results - 31/7/98 ----------------------------------------------- Kilang Papan Seribu Daya Bhd (listed on the KLSE) reported a post tax loss of RM8.897mil for the 6 months ended 31/7/98, compared to a post tax profit of RM5.364mil previously. EPS fell from RM0.50 to a loss per share of RM0.43 KONG HING ROLLING SHUTTER SDN BHD: Winding-up petition ------------------------------------------------------ SKB Shutters Manufacturing Sdn Bhd on 23/9/98 petitioned for the winding-up of Kong Hing Rolling Shutters Sdn Bhd. The petition is directed to be heard on 10/3/99. MAJURMAS SDN BHD: Winding-up petition ------------------------------------- Pelangi Bhd on 10/7/98 petitioned for the winding-up of Majurmas Sdn Bhd. The petition is directed to be heard on 20/11/98. PERAMU JAYA TRADING SDN BHD: Winding-up petition ------------------------------------------------ Shell Malaysia Trading Sdn Bhd on 25/9/98 petitioned for the winding-up of Peramu Jaya Trading Sdn Bhd. The petition is directed to be heard on 12/1/99. PERFECT FOOD INDUSTRIES BHD: Results - 31/7/98 ---------------------------------------------- Perfect Food Industries Bhd (listed on the KLSE) reported a post-tax loss of RM1.415mil for the 6months ended 31/7/98, compared to a post-tax loss of RM1.947mil previously. Loss per share fell 21.7% from 9.2sen to 7.2sen. PRIME ORCHARD SDN BHD: Winding-up petition ------------------------------------------ Jurutera Perunding M&E on 24/8/98 petitioned for the winding-up of Prime Orchard Sdn Bhd. The petition is directed to be heard on 18/12/98. PRUDENT CONCEPTS SDN BHD: Winding-up petition --------------------------------------------- Sin Chee Heng Sdn Bhd on 28/10/98 petitioned for the winding-up of Prudent Concepts Sdn Bhd. ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: Cathay in $585m bid for PAL ------------------------------------------------ According to the Hong Kong Standard, sources said yesterday that Cathay Pacific Airways offered on Friday at PAL's monthly 15-man board of directors to inject between US$75 million and US$100 million into PAL on condition that PAL gives up management control. Part of the offer will be in the form of convertible bonds. Philippine president Joseph Estrada confirmed that both sides were near an agreement but were discussing the issue of management control. ================= S I N G A P O R E ================= KEPPEL CORP: Mixed reaction on cost-cutting announcement -------------------------------------------------------- Keppel Corp.'s severe cost-cutting and restructuring programme has been welcomed by analysts who see it as essential house-cleaning, but most of the group's stocks still took a hit. Keppel, the holding company of Singapore's biggest industrial groups, yesterday announced belt-tightening measures that would save S$100 million a year. The measures, including retrenchment of 300 employees by the end of next month and wage cuts, come in anticipation of a longer than expected period of recovery from the regional crisis. Chairman Sim Kee Boon predicted a loss this year. Keppel closed 14 cents down at $3.54, while Keppel's Tat Lee Bank lost two cents to $2.07. =============== T H A I L A N D =============== ALPHATEC ELECTRONICS: Alphatec's restructuring plan filed --------------------------------------------------------- The Asian Wall Street Journal reported that a restructuring plan has been filed for Alphatec Electronics PCL. Under this plan, Alphatec, a bankrupt low-end computer chip assembler, will receive a cash infusion from an investor and the creditors will agree to write of 80 to 90 percent of their debt in return for a 20 percent equity stake in the company. Alphatec currently owes creditors about $375 million in past due credit. The plan also includes options for additional cash if the company meets long term performance targets. A meeting with creditors will probably occur at the end of November or in early December. A court approved planner for Alphatec stated that if the creditors do not approve the plan, then a plan for liquidation procedure will be laid out. At least 75 percent of the creditors need to approve this restructuring plan for Alphatec to emerge from its bankruptcy. However, as Alphatec's chip assembly equipment tends to depreciate rapidly, a liquidation may not yield much to the creditors. It was also stated that the company is quite close to running out of cash. DUSIT THANI: Plans to sell stake to Australian group ---------------------------------------------------- Thailand's Dusit Thani, major domestic hotel-chain owner, plans to sell a stake in its subsidiary hotel operator, Royal Princess, to an Australian business group. Chanut Piyaoui, the Dusit Thani chairwoman, was quoted by the National Newspaper as saying her company plans to sell the stake for at least 1 billion baht. TELECOMASIA: Buys more time on restructuring plan ------------------------------------------------- Thai creditors of TelecomAsia Corp. on Friday agreed that the company could formally suspend principal payments on its debt, buying the company more time to work out a debt- restructuring plan. The agreement is effective immediately but will be reviewed at the end of 1998, said Chandchutha Chandratat, vice president for project financing Bangkok Bank PLC, one of the creditors that signed the agreement on Friday. Mr Chandchuta, however, wasn't able to specify the amount of loans under the agreement, or the number of creditors involved. TelecomAsia's combined debt and money owed to suppliers totals nearly $1 billion, $296 million of which was due for payment in 1998. It paid 5.31 billion baht in interest in 1997, and analysts expect the company to pay 6.4 billion baht more in 1998. In the agreement, creditors resolved not to take any legal action against TelecomAsia for suspending payments on the principal of its debt. Mr Chandchutha said creditors will review progress on restructuring TelecomAsia's debt before deciding whether to extend the suspension of principal payments beyond the end of this year. In August, the company said it was looking to sell some of its assets, including its stake in Fiber Optic Around the Globe, an international fiber-optic venture in which TelecomAsia holds 16%. TelecomAsia is the only private operator of fixed telephone lines in Bangkok, in addition to the Telephone Organization of Thailand. It is a subsidiary of Charoen Pokphand Group. Bell Atlantic Corp of the US owns 18% of the company. 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 * * *