/raid1/www/Hosts/bankrupt/TCRAP_Public/981113.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 13, 1998, Vol. 1, No. 186

                    Headlines


* C H I N A   &   H O N G   K O N G *

CA PACIFIC: Clients claim process needlessly slow
CENTURY CITY: Standard Charter appointed advisor
CHI CHEUNG INVESTMENT: To dispose of development site
CROCODILE GARMENTS LIMITED: Results announcement
HEILONGJIANG SUGAR PLANT: Creditors write off $651m

HUA CHANG ELECTRONICS: Winding-up petition
J&A SECURITIES: Guotai-J&A merger in slow lane
JOLLY MARBLE LIMITED: Winding-up petition
KENFINE PAPER PRODUCTS COMPANY LIMITED: Winding-up petition
LAI SUN DEVELOPMENT: Property arm plunges 65pc

SINOCAN HOLDINGS: KPMG review for Sinocan
STIRLING DRAINAGE SERVICES LIMITED: Winding-up petition
TAK WING INVESTMENT: Selling assets, seeking funds
XIN GUO DA: Firm's closure poses serious security risks


* I N D O N E S I A *

PT FEDERAL MOTORS: Astra unit seeks debt extension


* J A P A N *

NISSAN MOTOR: Nissan appeals for government help
TOKYO MUTUAL: To take out Y14 bln in subordinated loans
TOKYU LAND: To raise Y60 bln via securitization


* K O R E A *

DONGAH LIFE: Firms don't meet solvency requirements
DOOWON LIFE: Firms don't meet solvency requirements
HANDUK LIFE: Firms don't meet solvency requirements
HANKUK LIFE: Firms don't meet solvency requirements
HYOSUNG TRADING: Trading suspended

JINSUNG REMINCON: Trading suspended
JOSUN LIFE: Firms don't meet solvency requirements
KOOKMIN LIFE: Firms don't meet solvency requirements
PACIFIC LIFE: Firms don't meet solvency requirements


* M A L A Y S I A *

KHOLY INDUSTRIES SDN BHD: Winding-up petition
KHUNG WAH PUBLISHING SDN BHD: Voluntary winding-up
MBF FINANCE: Approval to talk with Fubon Group
PROTON BHD: To benefit from new shareholder
RENONG: Fails in bid to write off $2b of debt

TA ENTERPRISE: Plans rights issue
TENAGA NASIONAL: Dollar-to-yen plan could backfire


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

GRAND PLAZA HOTEL: Singapore firm ups stake in hotel
NATIONAL STEEL CORP: Hottick to sell part of interests
PHILIPPINE AIRLINES: Obstacles remain in Cathay's path


* S I N G A P O R E *

FU YU MANUFACTURING: Sued for $8 million in damages
HOTEL PROPERTIES: Ong sells half of Planet Hollywood stake
SAN THE: Buys back stake in unit


* T H A I L A N D *

ERICSSON (THAILAND): Unpaid debts could put Ericsson in red
INDARA INSURANCE: Results announcement
SAHAVIRIYA OA: Jardine affiliate to take over key SVOA unit
SECURITIES ONE PCL: Issues additional warrants
THAI IRON WORKS: Results announcement
THAI OIL: Blames oil slump for debt woes


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

CA PACIFIC: Clients claim process needlessly slow
-------------------------------------------------
According to the SCMP, a group of angry clients yesterday
complained that Price Waterhouse had been dragging the
liquidation process unnecessarily. They said the longer the
liquidation, the more money will be spent on the
liquidator's fees. They rejected the move to have the
court decide clients' entitlements in a five-day hearing
that will begin today, saying this will further delay the
liquidation process. Client representative said clients
should get the same treatment and the liquidators were
urged to divide the brokerage's remaining shares among
the clients proportionally according to the amount of their
claims.

The clients also claimed there was a conflict of interest
as the liquidators had audited the brokerage before it
collapsed. The liquidators rejected all allegations.


CENTURY CITY: Standard Charter appointed advisor
------------------------------------------------
According to the SCMP, Century City International Holdings
has appointed Standard Chartered Asia as financial adviser
to the board. The bank's main focus will be to formulate a
financial plan to help ease the company's liquidity
problems.


CHI CHEUNG INVESTMENT: To dispose of development site
-----------------------------------------------------
Chi Cheung Investment is to dispose of its interest in a
development site in Tin Wan, Aberdeen for $46.8 million,
incurring a $41.7 million loss in its accounts. The
purchaser is Soar Chain, an unrelated party. Chi Cheung
said it believed the disposal would allow it realize a
property development project which it considered would
require additional contributions to complete.  


CROCODILE GARMENTS LIMITED: Results announcement
------------------------------------------------
Crocodile Garments Limited reports a net loss of HK$141
million on turnover of HK$906 million for the full year
ending July 31, 1998. This compares to a net profit of
HK$38 million on turnover of HK$1.05 billion for the
corresponding 1997 period.


HEILONGJIANG SUGAR PLANT: Creditors write off $651m
---------------------------------------------------
According to the SCMP, Xinhua reported that creditor banks
have agreed to write off 700 million yuan owed by
Heilongjiang Province Acheng Sugar Plant, the largest
amount in a single bankruptcy case which is expected to be
concluded in the next few days.

Xinhua also said that the firm's 4,500 employees had been
assigned new jobs, saving the government 100 million yuan
in salaries and subsidies this year.

The firm was the mainland's first sugar beet processing
plant with a daily processing capacity of more than 3,000
tonnes. It has been in tailspin since 1993 due to a heavy
debt burden and bad management. In June it was given
government approval to declare bankruptcy after running up
losses of 570 million yuan and debts of 700 million yuan.


HUA CHANG ELECTRONICS: Winding-up petition
------------------------------------------
Notice is hereby given that a petition for the winding-up
of Hua Chang Electronics Company Limited by the High Court
of Hong Kong was, on the 13th day of October, 1998,
presented to the said Court by C&C (Hong Kong) Company and
the petition is heard on 18th of November, 1998. Other
creditors who support or oppose the making of the order may
appear at the time of the hearing.  


J&A SECURITIES: Guotai-J&A merger in slow lane
----------------------------------------------
According to the SCMP, the planned merger of China Guotai
Securities and J&A Securities is likely to remain stalled
until next year. The proposed merger was first mooted in
July after announcements that judicial departments were
investigating a number of senior J&A officials.


JOLLY MARBLE LIMITED: Winding-up petition
-----------------------------------------
Notice is hereby given that a petition for the winding-up
of Jolly Marble Limited by the High Court of Hong Kong was,
on the 29th day of October, 1998, presented to the said
Court by Fung Wing and the petition is heard on 16th day of
December, 1998. Other creditors who support or oppose the
making of the order may appear at the time of the hearing.  


KENFINE PAPER PRODUCTS COMPANY LIMITED: Winding-up petition
-----------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Kenfine Paper Products Company Limited by the High Court
of Hong Kong was, on the 23rd day of October, 1998,
presented to the said Court by Pong Wing Luen and the
petition is heard on 2nd day of December, 1998. Other
creditor who support or oppose the making of the order may
appear at the time of the hearing.  


LAI SUN DEVELOPMENT: Property arm plunges 65pc
----------------------------------------------
According to the SCMP and the Hong Kong Standard, Lai Sun
Development saw net earnings plunge by a higher than
expected 65.8 per cent to $309.38 million. Turnover rose to
$3.54 billion from $3.04 billion. The company is expected
to further reduce debt by selling assets.

The SCMP said that according to analysts the plunge in net
earnings was attributable to high interest expenses arising
from its more than $9 billion net debts.

Earnings per share were 28.7 cents, down from 94.7 cents.  
No final dividend was declared.

According to the Hong Kong Standard, Lai Sun has issued 161
million new shares to Nan Fung Textiles at a subscription
price of 95 cents per share to raise $152.95 million.

According to both papers, Lai Sun Garment subsidiary
Crocodile Garments posted a net loss of $141.77 million for
the year to July, against net earnings of $32 million in
the preceding year. That included an exceptional loss of
$41.08 million.

Lai Sun Development's mainland investment arm Lai Fung
Holdings posted maiden full-year earnings of $143.91
million. Earnings per share were 20.8 cents and turnover
was $726.28 million. Directors did not declare a final
dividend, leaving the full-year dividend at one cent.


SINOCAN HOLDINGS: KPMG review for Sinocan
-----------------------------------------
According to the SCMP, Sinocan Holdings has appointed KPMG
Peat Marwick to review its financial and trading position
and to advise it in relation to options for a possible
restructuring of its bank borrowings. Sinocan said it had
held initial meetings with the newly appointed adviser and
its bank creditors and it would issue further announcements
to update shareholders on developments.


STIRLING DRAINAGE SERVICES LIMITED: Winding-up petition
-------------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Stirling Drainage Services Limited by the High Court of
Hong Kong was, on the 26th day of October, 1998, presented
to the said Court by Tsang Fan Ip 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.  


TAK WING INVESTMENT: Selling assets, seeking funds
--------------------------------------------------
According to the Hong Kong Standard, construction concern
Tak Wing Investment (Holdings) said yesterday in a
statement it was in talks to sell assets and seek new debt
and equity capital but no agreement had yet been reached.

In view of its unsatisfactory performance last year, Tak
Wing has taken measures to consolidate its position which
includes cost control, reducing space requirements,
relocating its head offices and cutting workforce. The
management intends to consider asset disposals this year
in order to reduce bank borrowings further.

By December 31, 1997, Tak Wing had net cash of $81.8
million, compared with $31.6 million the previous year.


XIN GUO DA: Firm's closure poses serious security risks
-------------------------------------------------------
A Reuters report highlights the frightening prospect of
thousands of angry investors clamouring for the return of
their life savings has emerged after protests in Beijing
linked to a futures scam and the recent collapse of a once-
respected trust firm, financial analysts said.

Disgruntled investors cheated in a multi-million dollar
futures scam marched through Beijing on Wednesday in one of
the boldest protests in the Chinese capital since the 1989
Tiananmen Square demonstrations. Thousands of Chinese
workers invested their life savings in Beijing-based Xin
Guo Da Futures Co Ltd, lured by the promise of monthly
interest payments of up to 30 percent. The brokerage, run
by a Taiwan resident with suspected links to the Chinese  
People's Liberation Army, shut its doors in August.

Last month, Beijing shut down the Guangdong International
Trust and Investment Corp (GITIC), the over-indebted
financial arm of the Guangdong provincial government.    
GITIC's collapse appears to be a problem of poor financial
decisions rather than fraud, but it has exposed lax
supervision of the financial sector.

"This potential (for finance-related social unrest) has
been a concern of the leadership for some time," said Dong
Fureng, a noted economist and former drafter of financial
legislation.

The Financial Times reports the protestors also walked to
the building of the official Xinhua News Agency, which they
accused of unfair reporting of the Xin Guo Da case.

Xinhua had reported that the company, which shut its doors
in August, had been bought "illegally" by private
entrepreneurs from its state-backed owners last January.
The use of the word "illegal," says the Times, convinced
many investors that the government was preparing arguments
to avoid having to compensate them.


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

PT FEDERAL MOTORS: Astra unit seeks debt extension
--------------------------------------------------
PT Federal Motors, the main motorcycle-producing unit of
conglomerate PT Astra International, is seeking to extend
for three years debt payments coming due this year, a
company director said. Himawan Tossin said the company was
seeking flexibility from bankers in terms of retaining some
cash flow. He said the company needs some flexibility in
having our cash because of foreign-currency volatility,
adding that the company needed cash to pay for its import.

Astra International last month halted interest payments on
its own debt and that of some of its units saying it
couldn't afford to pay the interest. Astra and its units
are negotiating with their bank to reach debt restructuring
agreements. Federal Motors is still paying interest on its
debt.

Mr Himawan said the company was also seeking a commitment
from banks that there would be a long-term lending facility
available to it. Mr Himawan, who is a member of Federal
Motors' board, said it was difficult to guess banks'
impressions on its debt restructuring proposal.


=========
J A P A N  
=========

NISSAN MOTOR: Nissan appeals for government help
------------------------------------------------
According to the SCMP, Kyodo News reported yesterday that
Nissan Motor asked on Tuesday government-affiliated lender
Japan Development Bank for a 100 billion yen loan as part
of its drive to cut its debt by a trillion yen by 2001 from
about 2.5 trillion yen at present, which is the highest in
Japan's vehicle industry.

Nissan's debt service payments in the year to March 31
outstripped its 84.3 billion yen operating profit. The new
debt is going to have much lower interest rate.  

A Nissan official said the company would use the money to
write off debt and buy new equipment.

Details about the amount and the timing of the loan had not
been decided.

Nissan's borrowing costs have risen amid poor earnings
results and downgrades of its long-term debt rating by
Moody's Investors Service to one step above junk. S&P also
rates Nissan's debt one step above junk.

The company has posted a parent loss in the six months to
Sept. 30 because of slumping sales and stock evaluation
losses. It also projected the company and its subsidiaries
would lose 30 billion yen in the year through March -- its
sixth loss in seven years -- jettisoning an earlier break-
even forecast. Nissan's outlook for pretax profit, which
excludes tax and one-time items, is more than 12 times the
4.7 billion yen it posted in the 12 months to last March
31.


TOKYO MUTUAL: To take out Y14 bln in subordinated loans
-------------------------------------------------------
Nikkei News reports Tokyo Mutual Life Insurance Corp. will
take out a combined 14 billion yen in subordinated loans
from Daiwa Bank and other institutions, sources said
Wednesday. The Tokyo-based midsize insurer hopes to boost
its capital base as well as strengthen ties with other
members of its group, which is led by Nomura Securities Co.
and Daiwa Bank. Coupled with a planned sale of bad debt,
the move is also intended to raise Tokyo Mutual's solvency
margin - a measure of an insurer's ability to honor
obligations to policyholders, according to the sources.

Tokyo Mutual intends to take out from Daiwa Bank 10 billion
yen in subordinated loans with no maturity date, making
them close to perpetual loans. The firm plans to procure
the remainder of the 14 billion yen from regional banks
with close business ties, borrowing the funds in the form
of fixed-term subordinated loans. The total book value of
the bad debts to be disposed of is estimated at 12.1
billion yen.

As of the end of March, Tokyo Mutual had 18.8 billion yen
of loans classified as bad. The planned debt sale is
expected to shrink those debts, plus any that go sour after
the sales, to roughly 9 billion yen. The debt disposal and
the use of subordinated loans will boost the company's
ability to meet its obligations to policyholders. That
ability has been eroded by growing unrealized valuation
losses in the insurer's equity portfolios.


TOKYU LAND: To raise Y60 bln via securitization
------------------------------------------------
Nikkei News reports Tokyu Land Corp. aims to raise a total
of 60 billion yen by securitizing commercial buildings that
generate rental income, company sources said. The goal,
contained in the firm's new, four-year business plan
through fiscal 2001, represents the largest securitization
move so far in the Japanese real-estate industry. Under its
new restructuring plan, Tokyu Land will strive to reduce  
its dependence on housing development and bolster leasing-
related income. The firm will also trim its work force by
20% and cut its interest-bearing liabilities to 400 billion
yen, down from 479.6 billion yen as of March 31.

By selling securities backed by the leasing income from
buildings, Tokyu Land expects to book gains of 30 billion
yen this fiscal year and another 30 billion yen in fiscal
1999. The projected boost to income will likely leave Tokyu
Land with its first net profit in four years in fiscal
1998.


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

DONGAH LIFE: Firms don't meet solvency requirements
---------------------------------------------------
The Korea Times reports regulators and industry analysts
are skeptical of the prospects of weak insurers meeting
their commitments to reduce their shortages in their
solvency requirements. Last August four life insurance
companies were closed and seven others were ordered to come
up with revised rehabilitation plans to meet solvency
requirements.

However, as of last September, these seven insurance
companies showed shortages in their solvency requirements
ranging from 16 to 32 percent. Furthermore, it was noted
that these companies are not healthy enough to attract the
foreign capital they need to meet their solvency
requirements.  

The article also reports the Insurance Supervisory Board
now plans to issue an ultimatum to these seven insurers
demanding that they trim their shortage ratios to 10
percent by the end of next March.  


DOOWON LIFE: Firms don't meet solvency requirements
---------------------------------------------------
The Korea Times reports regulators and industry analysts
are skeptical of the prospects of weak insurers meeting
their commitments to reduce their shortages in their
solvency requirements. Last August four life insurance
companies were closed and seven others were ordered to come
up with revised rehabilitation plans to meet solvency
requirements.

However, as of last September, these seven insurance
companies showed shortages in their solvency requirements
ranging from 16 to 32 percent. Furthermore, it was noted
that these companies are not healthy enough to attract the
foreign capital they need to meet their solvency
requirements.  

The article also reports the Insurance Supervisory Board
now plans to issue an ultimatum to these seven insurers
demanding that they trim their shortage ratios to 10
percent by the end of next March.  


HANDUK LIFE: Firms don't meet solvency requirements
---------------------------------------------------
The Korea Times reports regulators and industry analysts
are skeptical of the prospects of weak insurers meeting
their commitments to reduce their shortages in their
solvency requirements. Last August four life insurance
companies were closed and seven others were ordered to come
up with revised rehabilitation plans to meet solvency
requirements.

However, as of last September, these seven insurance
companies showed shortages in their solvency requirements
ranging from 16 to 32 percent. Furthermore, it was noted
that these companies are not healthy enough to attract the
foreign capital they need to meet their solvency
requirements.  

The article also reports the Insurance Supervisory Board
now plans to issue an ultimatum to these seven insurers
demanding that they trim their shortage ratios to 10
percent by the end of next March.  


HANKUK LIFE: Firms don't meet solvency requirements
---------------------------------------------------
The Korea Times reports regulators and industry analysts
are skeptical of the prospects of weak insurers meeting
their commitments to reduce their shortages in their
solvency requirements. Last August four life insurance
companies were closed and seven others were ordered to come
up with revised rehabilitation plans to meet solvency
requirements.

However, as of last September, these seven insurance
companies showed shortages in their solvency requirements
ranging from 16 to 32 percent. Furthermore, it was noted
that these companies are not healthy enough to attract the
foreign capital they need to meet their solvency
requirements.  

The article also reports the Insurance Supervisory Board
now plans to issue an ultimatum to these seven insurers
demanding that they trim their shortage ratios to 10
percent by the end of next March.  


HYOSUNG TRADING: Trading suspended
----------------------------------
According to the Korean language Maeil Kyungje's Business
Brief Section, the Korea Stock Exchange suspended the trade
of Hyosung Trade Company until November 13th.


JINSUNG REMINCON: Trading suspended
-----------------------------------
According to the Korean language Maeil Kyungje's Business
Brief Section, the Korea Stock Exchange suspended the trade
of Jinsung Remicon Company until November 14th.


JOSUN LIFE: Firms don't meet solvency requirements
--------------------------------------------------
The Korea Times reports regulators and industry analysts
are skeptical of the prospects of weak insurers meeting
their commitments to reduce their shortages in their
solvency requirements. Last August four life insurance
companies were closed and seven others were ordered to come
up with revised rehabilitation plans to meet solvency
requirements.

However, as of last September, these seven insurance
companies showed shortages in their solvency requirements
ranging from 16 to 32 percent. Furthermore, it was noted
that these companies are not healthy enough to attract the
foreign capital they need to meet their solvency
requirements.  

The article also reports the Insurance Supervisory Board
now plans to issue an ultimatum to these seven insurers
demanding that they trim their shortage ratios to 10
percent by the end of next March.  


KOOKMIN LIFE: Firms don't meet solvency requirements
----------------------------------------------------
The Korea Times reports regulators and industry analysts
are skeptical of the prospects of weak insurers meeting
their commitments to reduce their shortages in their
solvency requirements. Last August four life insurance
companies were closed and seven others were ordered to come
up with revised rehabilitation plans to meet solvency
requirements.

However, as of last September, these seven insurance
companies showed shortages in their solvency requirements
ranging from 16 to 32 percent. Furthermore, it was noted
that these companies are not healthy enough to attract the
foreign capital they need to meet their solvency
requirements.  

The article also reports the Insurance Supervisory Board
now plans to issue an ultimatum to these seven insurers
demanding that they trim their shortage ratios to 10
percent by the end of next March.  


PACIFIC LIFE: Firms don't meet solvency requirements
----------------------------------------------------
The Korea Times reports regulators and industry analysts
are skeptical of the prospects of weak insurers meeting
their commitments to reduce their shortages in their
solvency requirements. Last August four life insurance
companies were closed and seven others were ordered to come
up with revised rehabilitation plans to meet solvency
requirements.

However, as of last September, these seven insurance
companies showed shortages in their solvency requirements
ranging from 16 to 32 percent. Furthermore, it was noted
that these companies are not healthy enough to attract the
foreign capital they need to meet their solvency
requirements.  

The article also reports the Insurance Supervisory Board
now plans to issue an ultimatum to these seven insurers
demanding that they trim their shortage ratios to 10
percent by the end of next March.  


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

KHOLY INDUSTRIES SDN BHD: Winding-up petition
---------------------------------------------
Brady's (Malaya) Sdn Bhd on August 10, 1998, petitioned for
the winding-up of Kholy Industries Sdn Bhd. The petition is
directed to be heard on Nov. 27, 1998.

KHUNG WAH PUBLISHING SDN BHD: Voluntary winding-up
--------------------------------------------------
The members of Khung Wah Publishing Sdn Bhd resolved to
wind-up the company voluntarily. The hearing for the
winding-up shall be on 15/12/98.


MBF FINANCE: Approval to talk with Fubon Group
----------------------------------------------
Singapore Business Times says MBf Capital Bhd said Bank
Negara has given its approval to begin discussions with
Taiwan-based Fubon Group on a possible tie-up or purchase
of a stake in its unit -- MBf Finance Bhd. However, MBf
Capital said talks with Fubon were still "at a preliminary
stage" which have only been on a "courtesy" basis.


PROTON BHD: To benefit from new shareholder
-------------------------------------------
Singapore Business Times says Perusahaan Otomobil Nasional
Bhd may well benefit from the backing of new shareholder
Petroliam Nasional Bhd, particularly in terms of funding
technological development, however, the company's long-term
survival can only be guaranteed by a tie-up with a foreign
carmaker, analysts said. "The concerns, however, remain the
same as to how Proton can compete with major car
manufacturers. It is way behind in terms of production
capacity, technology and global market share," Allan Inn of
Kleinwort Benson said.


RENONG: Fails in bid to write off $2b of debt
---------------------------------------------
According to the SCMP and the Hong Kong Standard, Renong
was told by its creditors that they would not write off as
much as half of M$1 billion of debts, as a banker involved
in the discussions said. The banker also said Renong, which
has debts of about $20 billion, is offering to pay secured
creditors in full while asking unsecured creditors and
partially secured creditors to take 50 per cent of what
they are owed.

He said that Renong has up to 70 creditors.

According to the SCMP, foreign lenders Credit Lyonnais,
Schroder & Co, JP Morgan, Rothschild Bank, Sanwa Bank,
Sanco Santander, Bayerische Landesbank and Keppel Bank and
JP Morgan, Credit Lyonnais, Sanwa Bank, and Banco Santander
are among the partially secured.

The government asked Renong creditors to replace $10.5
billion of the companies' debt with government bonds which
would require creditors to agree to delayed repayment from
Renong until at least 2004, and unsecured creditors were
asked to forgive a part of the debt outstanding. About two
weeks ago, some of the unsecured creditors told Renong they
would not accept any "haircuts".

On Oct, Renong missed interest payments on two loans.
Creditors now want Renong to address the issue of
repatriation of money. They want to know if they can sell
the bonds to domestic institutions, creating an exit for
them.


TA ENTERPRISE: Plans rights issue
---------------------------------
According to Singapore Business Times, TA Enterprise plans
to tap the equity market for up to 582.5 million Malaysian
ringgit (S$252.5 million) through a rights issue payable in
two calls on the basis of four new shares with four
warrants attached for every five existing shares held. TA
Enterprise is a holding company with interest in one of
Malaysia's largest stockbroking firm, TA Securities. In a
statement through its merchant bank, TA Enterprise said the
proposed plan would involve an issue of up to 832.176
million shares at RM1 apiece, with the first call of 70 sen
payable in cash.

Of the total amount to be raised, RM180 million will go to
repay bonds, RM200 million to repay bank borrowings,
RM16.81 million as working capital, and RM4 million as
estimated expenses of the rights issue. The balance of
"approximately RM181.7 million would then be utilised for
any additional underwriting expenses, further repayment of
bank borrowings and for working capital purposes", the
statement said.


TENAGA NASIONAL: Dollar-to-yen plan could backfire
--------------------------------------------------
According to Singapore Business Times, analysts warn the
move by Malaysian power utility Tenaga Nasional Bhd to
convert a substantial portion of its US dollar debt into
Japanese yen could backfire. Tenaga said as at Aug 31, its
financial year-end, 33 per cent of its long-term loans were
denominated in US dollars compared to 41 per cent at the
six-month stage. Yen-denominated loans increased to 27 per
cent by year-end from 16 per cent during the year, Tenaga
said in a statement to analysts released after the
company's annual results on Tuesday.

The company said its total long-term loans amounted to
23.25 billion Malaysian ringgit (S$10.4 billion) at end-
August, up from RM19.76 billion in the middle of the
financial year.

"The increased exposure to the yen adds another facet of
uncertainty for investors," Patrick Tan, director of
research at ABN Amro Asia Equity Research in Kuala Lumpur,
said.

Tenaga said it had posted a net loss of RM3.09 billion for
the year, compared to a net loss of RM140 million
previously.


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

GRAND PLAZA HOTEL: Singapore firm ups stake in hotel
----------------------------------------------------
BusinessWorld reports Singaporean firm Zatrio Pte. Ltd., a
subsidiary of Republic Hotels and Resources Ltd., increased
its ownership in Grand Plaza Hotel Corp. (GPHC) by  
acquiring some 16 million shares held by two shareholders.

The move increased Zatrio's stake in GPHC, owner of The
Heritage Hotel located on Roxas Boulevard, from 16.26% to
28.83% for a total of 35.27 million shares. Zatrio is the
second-biggest shareholder in the company, next only to  
The Philippine Fund Ltd. which currently owns 54% interest.

GPHC corporate secretary Natividad B. Kwan told the stock
exchange that Zatrio bought the shares of Singapore-based
companies Hong Leong Enterprises Pte. Ltd. and Tudor Court
Gallery Pte. Ltd. which used to own 10.98% and 1.59%,
respectively. GPHC is a member of the CDL Hotels
International Ltd. which also operates in the United
States, New Zealand, Singapore, United Kingdom, France,
Australia, Hong Kong, Malaysia and Taiwan.


NATIONAL STEEL CORP: Hottick to sell part of interests
------------------------------------------------------
BusinessWorld reports Malaysian firm Hottick Investments
Co. Ltd. is unloading 30% of its 82.5% stake in the
National Steel Corp. (NSC) to a strategic foreign partner.
This, to help resuscitate the steel company's financial
conditions.

In an interview, NSC chief financial officer Isabelita
Hipolito said Hottick's divestment is one of two options
planned to address NSC's financial distress, the other
being infusion of additional capital. She added the
Philippine government, which used to control the steel
firm, made the 30% unloading a requirement that would be
fulfilled years after its privatization. Hottick bought NSC
shares from Hong Kong-based company Wing Tiek Holdings Bhd.


PHILIPPINE AIRLINES: Obstacles remain in Cathay's path
------------------------------------------------------
According to the SCMP, analysts said it would not be easy
for Cathay to turn PAL to profitability.

Cathay's initial proposals are believed to be slightly less
than US$100 million, compared with the Philippine
government's position that PAL needs about five billion to
six billion pesos.

Cathay has excess fleet capacity of which five unused
Boeing 747-Classic planes would be a logical fit for PAL.
Part of PAL's restructuring probably will require it to
give up all 24 of its leased aircraft, some of which have
been seized by creditors. That, along with PAL's move to
retire some older economically unviable Fokker 50 turbo-
prop aircraft earlier this year, will ultimately reduce its
fleet to about 20 aircraft.

PAL's strong domestic network in the Philippines could be
used to route international passengers on to Cathay flights
using Hong Kong as its hub in a code-sharing or seat-
blocking agreement. Many of Cathay's back-office functions
could be moved to the Philippines. However, the deal will
not increase Cathay's own passenger volumes, nor move its
position in Asia's airline pecking order.

Two largest headaches are a militant workforce and
politically driven nature of where it must fly in the
Philippines.

According to the Hong Kong Standard, PAL vice-president
Manolo Aquino said there was no demand from Cathay for the
Philippine government to divest its 14 per cent share in
PAL.

Earlier yesterday, Philippine Airlines relaunched its Hong
Kong-Manila route, which PAL vice-president for North Asia
said is the most profitable route with Tokyo. PAL intended
to relaunch other profitable routes like Taipei, Singapore,
and Xiamen on the mainland.

Philippine National Bank, one of the major creditors of
PAL, with investments totalling 750 million pesos, may also
make direct investment in PAL if a new major investor
succeeds in turning it around. It may also make investment
through PNB Holdings, a subsidiary of the bank which
handles its remittance operations.


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

FU YU MANUFACTURING: Sued for $8 million in damages
---------------------------------------------------
Plastic injection moulding firm Fu Yu Manufacturing is
being sued for $8 million in damages, according to a writ
filed in the High Court last week. The writ of summons was
dated Nov 3 and was served on Fu Yu this Tuesday by lawyers
Allen & Gledhill who are acting on behalf of computer
monitor maker Sonica Industries Ltd.

It alleges that in March this year, Fu Yu agreed to supply
87,500 units of Sonica's Image Vision OSD 1785 to Sonica at
$20 per unit or $1.75 million in total. Due to Fu Yu's
failure to deliver, Sonica said a US customer withdrew its
order in September, resulting in Sonica losing about $8.03
million in profit.

For the first six months of this year, Fu Yu's earnings
plunged 90 per cent to $482,000 while its turnover fell 9
per cent to $78.9 million. It blamed "severe price
pressures" and "the high structured costs of doing business
in Singapore" for the profit drop.


HOTEL PROPERTIES: Ong sells half of Planet Hollywood stake
----------------------------------------------------------
Singapore Business Times reports Hotel Properties Ltd and
businessman Ong Beng Seng have sold close to half of their
shares in Planet Hollywood International Inc for a gross
gain of $12 million. The sales will reduce their shares,
held by equally owned Leisure Ventures, in the loss-making
theme restaurant chain to 12.65 million shares, or 12 per
cent, from 21 per cent.

They will receive US$45 million (S$74.1 million), or S$4.50
a share. The price is a 20 per cent premium to the market
price of Nasdaq-listed PHII. HPL posted a first-half loss
of S$7.8 million in September, from a profit of S$13.3
million a year earlier. It has sold stakes in US-based and
UK-based hotels, an Italian fashion franchise and property
projects in Europe.

The buyer of the stake sold by HPL and Mr Ong is Kingdom
Planet Hollywood, which reportedly already holds a 5.2 per
cent stake in PHII. Kingdom Planet is believed to be owned
by Saudi Prince Alwaleed bin Talal.


SAN THE: Buys back stake in unit
--------------------------------
Singapore Business Times says San Teh has bought back a
stake in a subsidiary that it sold last year, making a loss
of US$100,000 (S$165,000) in the process. The company said
it paid MC Private Equity Partners Asia US$3.4 million for
the latter's 5 per cent stake in STX, following the
exercise of a call and put option. San Teh had sold the
same stake to MC, an investment fund company linked to
Mitsubishi Corporation, for US$3.3 million following an
agreement in October last year. STX has once again become a
wholly-owned subsidiary of San Teh.


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

ERICSSON (THAILAND): Unpaid debts could put Ericsson in red
-----------------------------------------------------------
Ericsson (Thailand) blames a drop in sales and unpaid debt
for an expected loss this year, compared with more than 100
million baht in profit last year. Thai Telephone &
Telecommunication Plc (TT&T) had been unable to pay for
equipment, Jan Kemvall, president of Ericsson (Thailand)
said yesterday.

"As the network supplier, Ericsson is helping by not
collecting the debt at the moment," he said, declining to
reveal the amount of the debt or the projected loss. This
was the main reason for the sharp decline in revenue and
profit. Sales revenue was projected to drop by as much as
40% from last year, from 10 billion baht to six billion.


INDARA INSURANCE: Results announcement
--------------------------------------
Indara Insurance PCL reports reviewed quarterly financial
statements as a net loss of Bt8.22 million for the period
ending September 30, 1998. This compares to a loss of
Bt1.62 million for the corresponding 1997 period.


SAHAVIRIYA OA: Jardine affiliate to take over key SVOA unit
-----------------------------------------------------------
The Bangkok Post reports Jardine Office Systems Technology
Group (JOS) will effectively take over operations of cash-
strapped Sahaviriya OA Plc (SVOA), one of the country's
largest office automation suppliers. A new joint-venture
company, with JOS holding the majority stake, will be set
up to run SVOA's information technology distribution unit
and part of the back-office supporting functions.

The deal is expected to bring a welcome infusion of cash to
SVOA, which has at least six billion baht in debts.
But Jack Min Intanate, executive chairman of SVOA, said the
company would also gain access to expertise in business
trading, technology and future business opportunities.

"We are negotiating with our creditors to have their
approval," he said, adding that due diligence would be
finished within a month.


SECURITIES ONE PCL: Issues additional warrants
----------------------------------------------
Securities One PCL has issued 280mn warrant units to
existing shareholders and 420mn warrant units to a specific
investment group to purchase new ordinary shares at the
ratio of 1 warrant for 1 ordinary share at the price of
Baht 5.00 per share. Warrant holders can exercise their
warrants every final working day of the month, beginning
June 30,1998 through to May 31, 2001.

S-ONE submits the report of exercise of S-ONE-W3 as of Oct.
30, 1998 and the Company has notified the public via the R-
SIMS systems on Nov 11, 1998.


THAI IRON WORKS: Results announcement
-------------------------------------
Thai Iron Works PCL reports reviewed quarterly financial
statements as a net loss of Bt6.2 million for the period
ending September 30, 1998. This compares to a profit of
Bt6.5 million for the corresponding 1997 period.


THAI OIL: Blames oil slump for debt woes
----------------------------------------
Debt-ridden Thai Oil on Thursday blamed the dismal oil
market for its problems which have forced the company to
announce a six-month suspension of repayments of principal
on $1.9 billion of loans, according to a report by Reuters.

Thai Oil managing director Chulchit Bunyaketu told Reuters
in an interview that the firm had informed its individual
creditors over the past two weeks that it had problems
servicing its loans and needed debt restructuring. He said
none of the company's piling debt was backed by collateral.
Thai Oil would hold a meeting with all creditors within
this month, he said.

Thai Oil is 49 percent owned by the state-owned Petroleum
Authority of Thailand (PTT) and 25 percent owned by a large
private Thai group, Chow Chowkwanyun.


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.  

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