/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/981112.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, November 12, 1998, Vol. 1, No. 185 Headlines * C H I N A & H O N G K O N G * ANGELITOS (CHINA) LIMITED: Winding-up petition AWT HOLDINGS: Sunford to dispose of AWT shares CULTURECOM HOLDINGS: Confirms third party discussions ETERNAL GLORY INDUSTRIAL LIMITED: Winding-up order FASHION THEME LIMITED: Winding-up petition GENTLE SUCCESS COMPANY LIMITED: Winding-up order GOLDEN EAGLE (INTERNATIONAL): Winding-up petition HOPEWELL HOLDINGS: Outside group may take over project KUN FAT HONG LIMITED: Winding-up petition LAVON JEWELLERY LIMITED: Winding-up petition LINK SHINE LIMITED: Winding-up petition NEWKINGS ENTERPRISES COMPANY LIMITED: Winding-up order NOBEL INTERIOR LIMITED: Winding-up order REGENT CHANCE LIMITED: Notice to creditors SPEED INTERNATIONAL (HK) LIMITED: Winding-up order SUCCESS PACIFIC TRAVEL LIMITED: Winding-up order ULTRA TECHNOLOGY LIMITED: Notice to creditors WELLESON MANAGEMENT LIMITED: Winding-up order WILMINK EXPRESS LIMITED: Winding-up petition WIN EXCEL LIMITED: Winding-up order * J A P A N * EAST JAPAN RAILWAY: Results announcement LONG TERM CREDIT: Asks execs to return retirement pay NISSAN MOTOR: Braces for sixth loss in seven years NISSAN MOTOR: To receive $820M loan SEIKO: Results announcement SHOCHIKU CO: Decline in visitors forces shutdown of park SOFTBANK: Results announcement TOYOTA MOTOR: Most units see midterm pretax profit decline * K O R E A * DAEWOO GROUP: Government allows banks to conduct workouts HYUNDAI GROUP: Government allows banks to conduct workouts KYUNGHYANG CONSTRUCTION: Completes creditor reconciliation LG GROUP: Government allows banks to conduct workouts SAMSUNG GROUP: Government allows banks to conduct workouts SK GROUP: Government allows banks to conduct workouts * M A L A Y S I A * BERKAT HASIL SDN BHD: Winding-up petition EURO-MIX INDUSTRIES SDN BHD: Winding-up petition INDERALOKA KIARA SDN BHD: Winding-up petition IRIICHI (BALING) SDN BHD: Voluntary winding-up TENAGA NASIONAL BHD: Results announcement * P H I L I P P I N E S * DHARMALA PHILIPPINES: Officials resign EVER-GOTESCO: Approves sale of Laguna mall NATIONAL POWER: Employees not assured of job security NATIONAL STEEL CORP: Creditors give debt moratorium PAPER CITY: Seeks debt shelf extension PHILIPPINE AIRLINES: Receiver accepts conditional proposal SM PRIME: To benefit from debt reduction * T H A I L A N D * ASIAN SEAFOOD: Results announcement CHRISTIANI & NIELSEN (THAI) PCL: Unable to pay dividend CIRCUIT ELECTRONIC: SET reveals connected transaction FINANCE ONE: Arrest warrants approved for former execs M.K. REAL ESTATE: Announces expiration of warrants PETROLEUM AUTHORTITY: Tries again to make BMTA pay SEMICONDUCTOR VENTURES: Reports capital increase TIPCO ASPHALT PCL: Announces expiration of warrants TOTAL ACCESS COMM: Moody's announces ratings cut ================================= C H I N A & H O N G K O N G ================================= ANGELITOS (CHINA) LIMITED: Winding-up petition ---------------------------------------------- Notice is hereby given that a petition for the winding-up of Angelitos (China) Limited by the High Court of Hong Kong was, on the 26th day of October, 1998, presented to the said Court by Yu Tin Chi 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. AWT HOLDINGS: Sunford to dispose of AWT shares ---------------------------------------------- Sunford Finance (HK) has entered into an agreement to dispose of AWT Holdings shares pledged as security for loans to companies beneficially owned by AWT chairman David Leung Tze-hang. The companies have no business relationship with AWT. The holding amounting to about 14% of AWT is being sold to an independent third party that will become AWT's single largest shareholder after the sale. CULTURECOM HOLDINGS: Confirms third party discussions ----------------------------------------------------- Sing Tao Holdings Limited has informed Culturecom Holdings Limited that further to the announcement dated 22nd September, 1998 it is having discussions with an additional independent third party which may lead to the sale of part or all of Sing Tao's 43% shareholding interest in the Company. ETERNAL GLORY INDUSTRIAL LIMITED: Winding-up order -------------------------------------------------- A winding-up order notice is hereby given that Eternal Glory Industrial Limited is undergoing a companies winding- up proceedings (No 667 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is October 29, 1998. The date of presentation of petition was September 18, 1998. FASHION THEME LIMITED: Winding-up petition ------------------------------------------ Notice is hereby given that a petition for the winding-up of Fashion Theme Limited by the High Court of Hong Kong was, on the 3rd day of November, 1998, presented to the said Court by Li Ma Court 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. GENTLE SUCCESS COMPANY LIMITED: Winding-up order ------------------------------------------------ A winding-up order notice is hereby given that Gentle Success Company Limited is undergoing a companies winding- up proceedings (No 675 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is October 29, 1998. The date of presentation of petition was September 22, 1998. GOLDEN EAGLE (INTERNATIONAL): Winding-up petition ------------------------------------------------- Notice is hereby given that a petition for the winding-up of Golden Eagle (International) Trading Development Limited by the High Court of Hong Kong was, on the 20th day of October, 1998, presented to the said Court by Chan Yan Yan and the petition is heard on 25th day of November, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. HOPEWELL HOLDINGS: Outside group may take over project ------------------------------------------------------ The Thai government says a British-Thai group has proposed to take over a stalled Bangkok mass transit rail and road project originally being built by Hopewell Holdings. Thai Deputy Communications and Transportation Minister Pradit Pattraprasit told reporters Britain's Extra-K and its Thai partner, Sirichai Bulkul, had asked for government support to continue Hopewell's US$3.2 billion Bangkok Elevated Road and Train System. Mr Pradit gave no details of the British- Thai venture. If Hopewell is taken out of the project, it would receive none of the returns that the railway would generate, Mr Wanglee (Goldman Sachs' Thailand strategist) said. Bangkok's action will affect Hopewell negatively, he said. Even if the firm finds enough funds for the project and gets started again, it would take two to three years to complete it. Mr Pradit said the government would formally review the British-Thai venture's proposal if it could provide project financing documents in three weeks. KUN FAT HONG LIMITED: Winding-up petition ----------------------------------------- Notice is hereby given that a petition for the winding-up of Kun Fat Hong Limited by the High Court of Hong Kong was, on the 30th day of October, 1998, presented to the said Court by Lam Sik Yan 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. LAVON JEWELLERY LIMITED: Winding-up petition -------------------------------------------- Notice is hereby given that a petition for the winding-up of Lavon Jewellery Limited by the High Court of Hong Kong was, on the 16th day of October, 1998, presented to the said Court by Limbu Sharsoti and the petition is heard on 25th day of November, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. LINK SHINE LIMITED: Winding-up petition --------------------------------------- Notice is hereby given that a petition for the winding-up of Link Shine Limited by the High Court of Hong Kong was, on the 26th day of October, 1998, presented to the said Court by Yeung Kin Wah 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. NEWKINGS ENTERPRISES COMPANY LIMITED: Winding-up order ------------------------------------------------------ A winding-up order notice is hereby given that Newkings Enterprises Company Limited is undergoing a companies winding-up proceedings (No 695 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is October 29, 1998. The date of presentation of petition was September 28, 1998. NOBEL INTERIOR LIMITED: Winding-up order ---------------------------------------- A winding-up order notice is hereby given that Nobel Interior Limited is undergoing a companies winding-up proceedings (No 688 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is October 29, 1998. The date of presentation of petition was September 25, 1998. REGENT CHANCE LIMITED: Notice to creditors ------------------------------------------ Notice is hereby given that the creditors of Regent Chance Limited (in creditors' voluntary liquidation) are required on or before 7th December, 1998 to send in their names and address, full particulars of their debts and claims, and the name and addresses of their solicitors, to the liquidators of the said company at 23/F., Sunshine Plaza, 353 Lockard Road, Wanchai, Hong Kong. SPEED INTERNATIONAL (HK) LIMITED: Winding-up order -------------------------------------------------- A winding-up order notice is hereby given that Speed International (HK) Limited is undergoing a companies winding-up proceedings (No 696 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is October 29, 1998. The date of presentation of petition was September 28, 1998. SUCCESS PACIFIC TRAVEL LIMITED: Winding-up order ------------------------------------------------ A winding-up order notice is hereby given that Success Pacific Travel Limited is undergoing a companies winding-up proceedings (No 677 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is October 29, 1998. The date of presentation of petition was September 22, 1998. ULTRA TECHNOLOGY LIMITED: Notice to creditors --------------------------------------------- Notice is hereby given that the creditors of Ultra Technology Limited (in creditors' voluntary liquidation) are required on or before 7th December, 1998 to send in their names and address, full particulars of their debts and claims, and the name and addresses of their solicitors, to the liquidators of the said company at Room 2329, Lei Chak House, Ap Lei Chau Estate, Hong Kong. WELLESON MANAGEMENT LIMITED: Winding-up order --------------------------------------------- A winding-up order notice is hereby given that Welleson Management Limited is undergoing a companies winding-up proceedings (No 668 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is October 29, 1998. The date of presentation of petition was September 18, 1998. WILMINK EXPRESS LIMITED: Winding-up petition -------------------------------------------- Notice is hereby given that a petition for the winding-up of Wilmink Express Limited by the High Court of Hong Kong was, on the 12th day of October, 1998, presented to the said Court by Cargo Flow Transportation Limited and the petition is heard on 25th of November, 1998. Other creditors who support or oppose the making of the order may appear at the time of the hearing. WIN EXCEL LIMITED: Winding-up order ----------------------------------- A winding-up order notice is hereby given that Win Excel Limited is undergoing a companies winding-up proceedings (No 689 of 1998) in the High Court of the Hong Kong Special Administrative Region court of first instance. The date of order is October 29, 1998. The date of presentation of petition was September 25, 1998. ========= J A P A N ========= EAST JAPAN RAILWAY: Results announcement ---------------------------------------- East Japan Railway Co. (JR East) said Wednesday its unconsolidated pretax profit in the April-September first half of fiscal 1998 dropped 4.0% from a year earlier to 59.03 billion yen. The company blamed the profit decline on the worsening economy and on increased operating expenses brought on by a change in the depreciation-calculating system of the company's bullet train facilities. LONG TERM CREDIT: Asks execs to return retirement pay ----------------------------------------------------- Kyodo News reports Long-Term Credit Bank of Japan (LTCB) will ask 23 of its former executives to pay back a total of 3 billion yen in retirement allowances, LTCB officials said Wednesday. LTCB will make the request by the end of this month as all the executives have yet to return their retirement allowances despite being urged to do so under a restructuring program adopted in late August, they said. The executives include Binsuke Sugiura, a former president, who received 930 million yen in retirement allowances in fiscal 1992 and has expressed his intention to return the money, they said. Some of the 23 have said they would return their retirement allowances only if they were sure all the executives were doing so, the officials said. NISSAN MOTOR: Braces for sixth loss in seven years -------------------------------------------------- Reuters reports Nissan Motor Co., Japan's No.2 auto maker, said Tuesday it expected to record its sixth consolidated net loss in seven years this fiscal year, abandoning an earlier forecast that it would break even. "The situation has become more severe, so if it appears that our reform plans will not be sufficient, we'll have to consider additional steps," Managing Director Kanemitsu Anraku told a news briefing at the Tokyo Stock Exchange. The automaker had earlier announced a 32.5 billion yen ($264.2 million) parent net loss for the six months ended Sept. 30 and said it expected a consolidated net loss of 30 billion yen ($243.9 million) for the full fiscal year ending March 31. The news followed an announcement in May that Nissan lost 14 billion yen ($113.8 million) in the last fiscal year, having just returned to the black the year before for the first time in five years. The May announcement also included a three-year restructuring plan to cut debt, trim costs and weed out unprofitable models from Nissan's rambling product line-up. NISSAN MOTOR: To receive $820M loan ----------------------------------- The Associated Press reports a Japanese government-run financial institution will extend $820 million in a special loan to Nissan Motor Co., the largest ever given to a single company, a news report said Wednesday. The loan by the Japan Development Bank will apparently be used to pay back funds Nissan borrowed from commercial banks, Kyodo News Service said. Tatsuya Onishi, a spokesman at Tokyo- based Japan Development Bank, said the bank does business with Nissan, but added he could not comment on individual loan cases. Nissan spokesman Keiichi Tsuboi said the auto maker, Japan's second-largest, was working to confirm the report. SEIKO: Results announcement --------------------------- Japan's Seiko said yesterday it went into the red for the six months to September, dragged down by the recession in Japan and Asia's economic woes. Seiko said it took a parent net loss of 7.6 billion yen in the half, against a 2.3 billion yen profit last year. Seiko, the trading house which deals in clocks and watches, said parent pre-tax profits slid 30.1% to 1.8 billion yen, with sales down 23.1% at 64.9 billion yen. SHOCHIKU CO: Decline in visitors forces shutdown of park -------------------------------------------------------- Shochiku Co., a Japanese movie company, said it will close an amusement part in the suburbs of Tokyo on Dec. 15 and focus on its main business. Due to a continued decline in the number of visitors in recent years amid the economic slump, "Kamakura Cinema World" isn't in a position to generate profits, said Shochiku. The closure will likely cut the company's sales by 330 million yen, but help trim pretax and net losses by 310 million yen for the year ending in February, it said. The company has decided to concentrate its management resources on its movie and theater business, it said. Shochiku now expects a full year net loss of 3.71 billion yen on sales of 50.87 billion yen. SOFTBANK: Results announcement ------------------------------ Japan's Softbank said yesterday it sank into red in the six months to September as the recession at home dragged down the computer industry. Softbank, Japan's top wholesaler of personal computer software, said it took a group pre-tax loss of 2.4 billion yen in the half, against 6.3 billion yen profit last year. It was the first lost the firm has taken since it went public in 1994. But group net profit was up 39.1% at 3.3 billion yen, with sales up 9.5% at 246.2 billion yen. The Financial Times says the poor performance was due to subsidiaries such as Ziff-Davis, the US technology publishing company, and Kingston Technology Company, the PC memory board maker. The Times reports these results were also set against a Y4.8bn extraordinary loss, partly associated with the winding up of some unprofitable businesses such as Softbank Services Group, and internet advertising service providers, Ji-tong and Zulu Teck. TOYOTA MOTOR: Most units see midterm pretax profit decline ---------------------------------------------------------- Nikkei News reports of the 10 major Toyota Motor Corp. group firms to announce on Tuesday earnings results for the half year ended September, eight saw a drop in pretax profit, reflecting a decline in the major automaker's domestic production. Cost-cutting efforts, including redesigns of some parts, failed to offset declining sales and losses on securities revaluations. Seven of the firms are expected to see pretax profit decline for the full year through March 1999. Sales at Toyota Auto Body Co., which produces minivans on commission, fell more than 20%. Sales also declined more than 20% at Aichi Steel Works Ltd., due in part to the disappointing performance of a special steel it makes for use in cars and construction machinery. Electrical equipment produced by Denso Corp. sold poorly, as did engine parts produced by Aisin Seiki Co. ========= K O R E A ========= DAEWOO GROUP: Government allows banks to conduct workouts --------------------------------------------------------- The Korea Times reported that the government has decided to let banks place one or two core companies of each of the country's five largest conglomerates (or chaebols) under a debt workout program before the end of this month. Up until now, workouts were not applied to the larger chaebols as efforts continued to restructure the nation's industries via business swaps aimed at enhancing specialization and debt reduction were underway. HYUNDAI GROUP: Government allows banks to conduct workouts ---------------------------------------------------------- The Korea Times reported that the government has decided to let banks place one or two core companies of each of the country's five largest conglomerates (or chaebols) under a debt workout program before the end of this month. Up until now, workouts were not applied to the larger chaebols as efforts continued to restructure the nation's industries via business swaps aimed at enhancing specialization and debt reduction were underway. KYUNGHYANG CONSTRUCTION: Completes creditor reconciliation ---------------------------------------------------------- According to the Korean language Maeil Kyungje's Business Brief section, the Kyunghyang Construction Company has completed its creditor reconciliation procedure. LG GROUP: Government allows banks to conduct workouts ----------------------------------------------------- The Korea Times reported that the government has decided to let banks place one or two core companies of each of the country's five largest conglomerates (or chaebols) under a debt workout program before the end of this month. Up until now, workouts were not applied to the larger chaebols as efforts continued to restructure the nation's industries via business swaps aimed at enhancing specialization and debt reduction were underway. SAMSUNG GROUP: Government allows banks to conduct workouts ---------------------------------------------------------- The Korea Times reported that the government has decided to let banks place one or two core companies of each of the country's five largest conglomerates (or chaebols) under a debt workout program before the end of this month. Up until now, workouts were not applied to the larger chaebols as efforts continued to restructure the nation's industries via business swaps aimed at enhancing specialization and debt reduction were underway. SK GROUP: Government allows banks to conduct workouts ----------------------------------------------------- The Korea Times reported that the government has decided to let banks place one or two core companies of each of the country's five largest conglomerates (or chaebols) under a debt workout program before the end of this month. Up until now, workouts were not applied to the larger chaebols as efforts continued to restructure the nation's industries via business swaps aimed at enhancing specialization and debt reduction were underway. =============== M A L A Y S I A =============== BERKAT HASIL SDN BHD: Winding-up petition ----------------------------------------- Lau Soo Ha on 15/10/98 petitioned for the winding-up of Berkat Hasil Sdn Bhd. The petition is directed to be heard on 15/12/98. EURO-MIX INDUSTRIES SDN BHD: Winding-up petition ------------------------------------------------ Platicorp (M) Sdn Bhd on 25/9/98 petitioned for the winding-up of Euro-Mix Industries Sdn Bhd. The petition is directed to be heard on 13/1/99. INDERALOKA KIARA SDN BHD: Winding-up petition --------------------------------------------- Perniagaan Berjaya on 15/10/98 petitioned for the winding- up of Inderaloka Kiara Sdn Bhd. The petition is directed to be heard on 15/12/98. IRIICHI (BALING) SDN BHD: Voluntary winding-up ---------------------------------------------- The members of Iriichi (Baling) Sdn Bhd on 10/11/98 resolved to wind-up the company voluntarily. Creditors are requested to submit their claims before 31/12/98. TENAGA NASIONAL BHD: Results announcement ----------------------------------------- Tenaga Nasional Bhd widened its loss to 3.09 billion ringgit in the year ended August 31 from 140.6 million ringgit a year earlier. On a pretax basis, the Malaysian utility widened its loss to 2.79 billion ringgit from 144.7 million ringgit. The loss per share widened to 99.8 sen from 4.6 sen. The loss was attributed largely to a foreign-exchange loss of 3.51 billion ringgit, reflecting the impact of dollar debt coupled with a weakened ringgit. The foreign-exchange loss is somewhat exaggerated, however, as it reflects the level of the ringgit before Malaysia imposed capital controls, when the currency was trading around 4.2 ringgit to the US dollar. Tenaga President Tajuddin Ali said net profit for the current year will total between 1.5 billion ringgit and two billion ringgit. He said maintaining the exchange rate at 3.8 ringgit will produce a foreign-exchange gain in 1999 of 40 sen for every dollar of debt. He added that dollar- denominated debt currently amounts to 30% of Tenaga's total debt, while yen-denominated debt totals 28% and ringgit debt 38%, he said. He described cash flow as healthy and sufficient to service Tenaga's loans and pay its bills to the independent power producers from which it buys electricity. ===================== P H I L I P P I N E S ===================== DHARMALA PHILIPPINES: Officials resign -------------------------------------- BusinessWorld reports a local firm is said to be buying into listed company Dharmala Philippines, Inc. (DPI) as it has been recently faced with a spate of top management resignations. The local firm, which is allegedly attached to The Professional Group, is said to be eyeing the company and taking majority ownership of the company's securities firm. EVER-GOTESCO: Approves sale of Laguna mall ------------------------------------------ BusinessWorld reports Ever-Gotesco Resources Holdings, Inc. will sell its 11.2-hectare shopping mall in Calamba, Laguna, a province south of Manila, in order raise funds to settle the company's obligations amounting to some 500 million Philippine pesos (PhP). Ever-Gotesco associate vice-president for finance Arturo Garcia told BusinessWorld yesterday that the company is expecting to finalize the sale before the end of the year. Meanwhile, Ever-Gotesco subsidiary Gotesco Land, Inc. (GLI) is also considering selling several development projects in Batangas to property-related firms and local and international hotel operators. These properties include its Evercrest Whitecove project in Nasugbu, Batangas and residential projects in Batulao. NATIONAL POWER: Employees not assured of job security ----------------------------------------------------- BusinessWorld reports half of National Power Corp.'s (Napocor) 13,000 regular employees are not guaranteed employment security once private investors have taken over the state-run power firm. Napocor will be up for sale in a year's time. Under the plan, at least seven generating companies will be spun off once Napocor is privatized while a national transmission company, which is fully government- owned, will be created. NATIONAL STEEL CORP: Creditors give debt moratorium --------------------------------------------------- The Asian Wall Street Journal reported that the creditors of the National Steel Company have given it an indefinite debt moratorium. An indefinite debt moratorium was provided to the Philippines largest steel maker as all of the company's loans are covered by assets. The moratorium covers principal payments only. The report stated that National Steel Company has been having trouble meeting maturing obligations due to the weaker peso and higher interest rates. Earlier this year, 14 creditor banks provided National Steel with a 60-day debt moratorium during a study of the company's assets and financial viability. PAPER CITY: Seeks debt shelf extension -------------------------------------- BusinessWorld reports cash-strapped Paper City Corp. of the Philippines (PCCP) has asked the Securities and Exchange Commission (SEC) for another extension of debt payment. In the same motion, the firm asked the SEC to turn down the motion of Union Bank of the Philippines, one of the firm's major creditors, to dismiss Paper City's petition for the temporary debt shelf. Smarting from high interest rates and the devalued Philippine peso (PhP), Paper City filed a petition with the SEC for the suspension of its debt payments early this year. Its total obligations amount to PhP292.357 million plus $13.694 million in dollar loans as of January 12. Its assets, on the other hand, are estimated at PhP1.575 billion. PHILIPPINE AIRLINES: Receiver accepts conditional proposal ---------------------------------------------------------- Cathay Pacific yesterday moved closer to acquire control of Philippine Airlines after the latter's receiver accepted a conditional proposal for a possible investment by Cathay. Cathay said it had offered about 3 million pesos to become the airline's biggest shareholder. David Turnbull, chief executive of Cathay, said the airline had made a provisional offer of between 3 billion pesos and 4 billion pesos to take a stake in the flag carrier. PAL said the proposal remains subject to a number of conditions including due diligence, agreement with creditors on rescheduling PAL's liabilities, agreement on technical assistance and governance arrangements, apart from the finalisation of the necessary shareholders agreement and subscription details. SM PRIME: To benefit from debt reduction ---------------------------------------- BusinessWorld reports the reduction in SM Prime Holdings, Inc.'s (SMPH) $150-million worth of foreign debt obligations during the first nine months of the year is expected to impact positively on the company's net income for the fourth quarter, analysts said. In its quarterly financial report to the stock exchange, the mall developer said it was able to reduce foreign debts by $15.69 million by end-September. The company's international notes amounting to $150 million prior to the reduction were issued on August 22, 1996 and payable in one lump sum on February 22, 2002. Interest was fixed at US Treasury rate plus certain spread determined at the time of the issuance of the notes. Analysts interviewed by BusinessWorld said the move to reduce a portion of its international notes will be positive for the company since this would also translate to better income for the next quarter. =============== T H A I L A N D =============== ASIAN SEAFOOD: Results announcement ----------------------------------- Asian Seafood ColdStorage PCL reports reviewed quarterly financial statements as a net loss of Bt21.9 million for the period ending September 30. This compares to a net profit of Bt10.4 for the corresponding 1997 period. CHRISTIANI & NIELSEN (THAI) PCL: Unable to pay dividend ------------------------------------------------------- Christiani & Nielsen (Thai) PCL has informed the SET that may not be able to pay interest and make any redemption for bonds that were due on 4 November 1998 because of ongoing financial restructuring. The company is currently negotiating with bondholders to redeem the bonds at a price lower than par value. The company will inform bondholders concerning this matter accordingly. CIRCUIT ELECTRONIC: SET reveals connected transaction ----------------------------------------------------- The SET has informed shareholders of Circuit Electronic Industries Public Company Limited (CIRKIT)'s annual financial statement for the period ending 31 December 1997, reported a loan by the company to several related businesses worth Bt471.56 million. This was considered a connected transaction under the SET's regulations. The total amount of the loan was split between five companies controlled by the Ngantaevee family; one of the major shareholders in CIRKIT. At the same time, CIRKIT had Bt150 million deposited with several finance companies that had been closed down by the authorities. Therefore, the company was unable to use or withdraw this amount for five years. The company's independent financial advisor, United Securities Public Company Limited (UNITED) considered only the benefits of an early pay-back of the Bt150 million from the closed financial institutions without realizing the impact of the approved credit line of Bt471 million. Therefore, the debt to equity ratio of CIRKIT was higher than ever. UNITED calculated a cash flow based on net present value using the same discount rate for both the investment in the closed-financial institution's promissory notes, which would be changed to an Negotiable Certificate of Deposit (NCD) from Krung Thai Bank Public Company Limited, and the lending to related companies. This shows that UNITED did not consider credit risk appropriately because any lending to related companies which have no operational history must have a higher risk than a NCD investment. In analyzing the debt repayment capability of Thai-Laos Lignite Company Limited, which took 92 per cent of the total loan amount, UNITED only referred to the opinions of CIRKIT's executives without giving its opinion as an independent financial advisor. UNITED should have consider independently whether Thai-Laos Lignite could really repay the debt. In addition, UNITED did not make a statement regarding the possible risk involved and did not investigate the possibility of debt repayment from other sources. Moreover, UNITED did not give any information on the use of the loan or comment on its benefit to the business of CIRKIT. UNITED did not fulfill its obligations as an independent financial advisor with care and prudence in terms of information dissemination. This, in turn, directly affected the ability of CIRKIT's shareholders to decide on the appropriateness of the loan to the related companies. As a result of these findings, CIRKIT's shareholders are advised by the SET to take care in making any decisions at the EGM on Friday, 13 November 1998. The SET President, Mr Singh Tangtatswas said "CIRKIT's shareholders must get the additional information ordered by the Exchange from UNITED before making any decisions. In addition, the SEC is considering the possible suspension of UNITED's financial advisor license. FINANCE ONE: Arrest warrants approved for former execs ------------------------------------------------------ The Bangkok Post reports police have decided to take further legal action against three former top executives of Finance One Plc, after a one-month investigation found strong evidence to back allegations first made by the Bank of Thailand. The central bank alleged in September that the three executives approved loans worth more than two billion baht to two subsidiaries of Finance One without collateral. It said the loans were made even though the three, while they were running Finance One, knew that the subsidiaries were not in a position to borrow as they had a negative net worth. M.K. REAL ESTATE: Announces expiration of warrants -------------------------------------------------- The warrants of M.K. Real Estate Development Public Company Limited (MK-W) will expire on 30 December 1998. The company will close the registration book starting from 18 November 1998 at noon to 30 December 1998 to give warrant holders an opportunity to exercise their exercising right to buy the company's common shares for the last time, which the last exercising period will be on 15 December 1998 to 30 December 1998 during 10.00 a.m. - 3.00 p.m. In order to comply with the SET's rules, the company has asked the Exchange to suspend trading in MK-W from 13 November 1998 to 30 December 1998. PETROLEUM AUTHORTITY: Tries again to make BMTA pay -------------------------------------------------- The Bangkok Post reports Industry Minister Suwat Liptapallop yesterday vowed to speed up the settlement of 2.7 billion baht in unpaid oil bills the Bangkok Mass Transit Authority owes the Petroleum Authority of Thailand (PTT). PTT governor Pala Sookawesh told Mr Suwat that the outstanding debts had aggravated cashflow problems faced by the national oil company. Mr Suwat said BMTA would need to obtain assistance from the Finance Ministry to find the money to settle the debts promptly. SEMICONDUCTOR VENTURES: Reports capital increase ------------------------------------------------ Semiconductor Ventures International Public Company Limited reports the Board of Directors passed a resolution approving the increase of a registered capital of the Company from 158,563,620 Baht to 872,099,910 Baht by means of the issuance of 71,353,629 ordinary/preferred shares with a par value of 10.00 Baht each, totaling 713,536,290 Baht. The board of directors also approved the allotment of 71,353,629 ordinary/preferred shares with par value of 10.00 Baht each, totaling 713,536,290 Baht. The company will use the capital increase/share allotment to facilitate the cash flow and improve the financial situation of the company. There is an agreement between the major creditors and major shareholders not to declare any dividend until the long term liabilities have been repaid. TIPCO ASPHALT PCL: Announces expiration of warrants --------------------------------------------------- The warrants of Tipco Asphalt Public Company Limited (TASCO-W) will expire on 4 January 1999. The company will close the registration book starting from 1 December 1998 at noon to 4 January 1999 to give warrant holders an opportunity to exercise their exercising right to buy the company's common shares for the last time. In order to comply with the SET's rules, the company has asked the Exchange to suspend trading in TASCO-W from 26 November 1998 to 4 January 1999. TOTAL ACCESS COMM: Moody's announces ratings cut ------------------------------------------------ The Asian Wall Street Journal reported that Moody's Investors Service reduced its senior debt rating for Total Access Communication PLC from B1 to B2. Moody's was cited as saying that the gloomy outlook for Thailand's economy meant that Total Access wouldn't be able to service its foreign debt obligations with increased operating profits. It was also stated that the company needs fresh capital to service increased foreign debt obligations, particularly a substantial number of bonds due in 2001. 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 * * *