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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      

      Tuesday, November 17, 1998, Vol. 1, No. 188

                    Headlines


* C H I N A   &   H O N G   K O N G *

CA PACIFIC: Barrister blasts broker's methods
EAST OCEAN SUCCESS: Winding-up order
EXCEL-VENTURE LIMITED: Winding-up petition
HARDGREAT INTERNATIONAL LIMITED: Winding-up petition
KPS VIDEO CHAIN: KPS gets unplugged

PIONEER CHEER: Winding-up order
RYODEN DEVELOPMENT: Sells some Manulife Tower office space
THEME INTERNATIONAL: Theme puts off meeting on results
WANON INTERNATIONAL: Results announcement


* I N D O N E S I A *

OMETRACO MULTIARTHA: Landmark bankruptcy ruling


* J A P A N *

FUJITA CORP: To restructure with banks' help
HOKKAIDO TAKUSHOKU: Takeover by North Pacific Bank
ISUZU MOTORS: Results announcement
JAPAN AIRLINES: Announces layoffs
JAPAN TRAVEL BUREAU: Results announcement

JAPAN VILENE: To reduce cloth output, cut staff
SUMITOMO BANK: Plans Y500 bln capital injections
TOKYO FLOWER SECURITIES: Brokerage firm to close operations
TOWA REAL ESTATE: To restructure with banks' help


* K O R E A *

CHUNGIL INDUSTRY: Trade of Chungil Industry stock suspended
HAITAI BEVERAGE: Haitai Beverage might be sold to Pepsi
HALLA HEAVY INDUSTRY: Expects court receivership
KIA MOTORS: Kia creditors block Hyundai probe
SASANG CHUNGANG TRUST CO-OP: Bankruptcy notice
TONGSUNG STEEL: Tonsung Steel completes liquidation


* M A L A Y S I A *

FGG WOOD MOULDING INDUSTRIES SDN BHD: Winding-up petition
GLOBAL TRADING CORPORATION SDN BHD: Voluntary winding-up
HNCEC-AC JV SDN BHD: Winding-up petition
MARANG HOLIDAY & RESORT SDN BHD: Winding-up petition
RMF ENTERTAINMENT SDN BHD: Winding-up petition

RAKAN MUDA CORPORATION SDN BHD: Winding-up petition
SNH CONSULTANCY (M) SDN BHD: Winding-up petition
SIME DARBY: Files police reports on securities arm
WEATHERWELL CORPORATION SDN BHD: Winding-up petition
ZENIYA MARKETING SDN BHD: Winding-up petition


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

CIRCUIT ELECTRONICS: To recall loans from Ngarntavee firms
PT&T: To submit debt restructuring program
PHILIPPINE AIRLINES: PAL seeks deadline extension


* S I N G A P O R E *

SCOTTS HOLDINGS: Hai Sun Hup likely buyer of 50% stake
TAT LEE SECURITIES: Keppel to take over operations


* T H A I L A N D *

CHAI WANTANA TANNERY PCL: Results announcement
PAKPANANG COLDSTORAGE PCL: Results announcement
SEA HORSE PCL: Results announcement
SINO THAI RESOURCE: Results announcement
THAI PETROCHEMICAL: TPI says 70% of creditors back solution
UNITED FOODS PCL: Results announcement


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

CA PACIFIC: Barrister blasts broker's methods
---------------------------------------------
According to the SCMP, as the court was presented with
audited accounts of the company, which allegedly showed
that it had no beneficial ownership of the shares held on
clients' behalf, counsel representing clients who would
best benefit from a proprietary claim remarked that the
company seemed to have operated its affairs in an
unorthodox manner.

The accounts showed that in the financial year preceding
the brokerage's collapse, securities trading amounted to
$16 billion. This shows the scale of the turnover. When CA
Pacific failed in January, its 10,000 clients were owed
shares worth $1.4 billion. It only had $900 million in
shares on hand. The task of deciding how best to maximise
returns for the two classes of clients in the liquidation
has been left to the judge.


EAST OCEAN SUCCESS: Winding-up order
------------------------------------
A winding-up order notice is hereby given that East Ocean
Success Holdings Limited is undergoing a companies winding-
up proceedings (No 697 of 1998) in the High Court of the
Hong Kong Special Administrative Region court of first
instance. The date of order is on November 4, 1998. The
date of presentation of petition was September 28, 1998.    


EXCEL-VENTURE LIMITED: Winding-up petition
------------------------------------------
Notice is hereby given that a petition for the winding-up
of Excel-Venture Limited by the High Court of Hong Kong
was, on the 26th day of October, 1998, presented to the
said Court by Chan May Shan and the petition is heard on
9th day of December, 1998. Other creditor who support or
oppose the making of the order may appear at the time of
the hearing.  


HARDGREAT INTERNATIONAL LIMITED: Winding-up petition
----------------------------------------------------
Notice is hereby given that a petition for the winding-up
of Hardgreat International Limited by the High Court of
Hong Kong was, on the 2nd day of November, 1998, presented
to the said Court by Lam Fu 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.  


KPS VIDEO CHAIN: KPS gets unplugged
-----------------------------------
According to the Hong Kong Standard, receivers Ernst &
Young said KPS Video would not be sold as one going
concern. After the "Coupon Burn" scheme in June, secured
creditor Standard Chartered Bank placed the company in
receivership to pre-empt the bailiffs that coupon holders
were about to send in. Appointed by Standard Chartered
Bank, Ernst & Young's job now is to get the bank's money
back by selling to the highest bidder.

The receiver said KPS' assets would be sold as a package
and the purchaser may start up the shops again. If the sale
brings in more than is owed to Standard Chartered, which
became a secured creditor with banking facilities it
granted 10 years ago, the remainder will be divided up to
second-tier creditors, including employees. Coupon holders
will almost certainly get nothing.

Kerry Lee Wai-siu, former operations director for the
defunct company, asserts that there were three main factors
that sent KPS to the wall.

The firm launched an imprudent expansion program that began
two years ago when retailing was booming and received a  
cash injection from its parent company, Chinavest Consumer
Services. With higher operating costs and poorly chosen
locations, and the moving away from its core competence
into the sale of music CDs, the firm lost its competitive
edge to smaller, cheaper shops or even pirates. More
wasting of retail space occurred when the 1997 Copyright
Ordinance was put in place. By banning parallel imports,
the bill reduced the number of titles KPS had to offer. The
new laws not only increased the company's operating costs,
but also decreased product availability by an estimated 30
per cent. The "Coupon Burn" scheme was the third factor and
the last straw. By that time the firm was losing money and
it had been looking for a rescuer since the beginning of
the year, but the amount of debt owed coupons made the firm
unattractive to a potential investor. The plan succeeded
in removing 90 per cent of such liability but it destroyed
customer goodwill and loyalty which had been the biggest
asset of the company.

With the biggest asset lost, any potential buyers dropped
out. By launching the scheme, the company managed to
prevent liquidation at that time but this also led to its
eventual demise.


PIONEER CHEER: Winding-up order
-------------------------------
A winding-up order notice is hereby given that Pioneer
Cheer International Limited is undergoing a companies
winding-up proceedings (No 703 of 1998) in the High Court
of the Hong Kong Special Administrative Region court of
first instance. The date of order is on November 4, 1998.  
The date of presentation of petition was September 30,
1998.    


RYODEN DEVELOPMENT: Sells some Manulife Tower office space
----------------------------------------------------------
Ryoden Development has sold some of the office space it
owns in Manulife Tower in North Point to a private company,
Ryoden Holdings, for a total price of $225 million. The
proceeds is expected to enhance the company's cash flow.

Raymond Hu, Ryoden Development managing director and deputy
chairman, said by disposing of about 63,265 sq. ft. in
Manulife Tower, the group has strategically redressed the
quality of its property holdings and improved its financial
strength.

He said the property market in Hong Kong has shown signs of
stabilizing after a substantial downturn and this strategy
will help release the group's internal financial resources
to take advantage of any profitable opportunities which may
arise during the market's recovery.


THEME INTERNATIONAL: Theme puts off meeting on results
------------------------------------------------------
According to the Hong Kong Standard, Theme International
Holdings has postponed its board meeting to approve the
final results for the year to March 31 from next Tuesday to
next Thursday. For the six months to September 31, 1997, it
posted a $19.8 million net interim loss, compared with $51
million net interim profit for the same period in 1996,
even as turnover increased 20.2 per cent to $481.7 million
during the same period.


WANON INTERNATIONAL: Results announcement
-----------------------------------------
Wanon International Holdings, which makes cordless phones,
has widened its net loss to $42.52 million for the year to
June 30 from $7.88 million in the previous period. The
company blamed price competition caused by the regional
financial crisis and bad debt provision for accounts
receivables for the dismal result, which also saw a 40%
drop in turnover to $54.4 million. Losses per share were
16.1 cents. No dividend would be proposed.  


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

OMETRACO MULTIARTHA: Landmark bankruptcy ruling
-----------------------------------------------
According to the SCMP, Ometraco Multiartha has become the
first company to be declared bankrupt by Indonesia's new
commercial court after creditors refused to agree to a
suspension of debt payments. Most publicly traded companies
in the country are technically insolvent but none had been
declared. The ruling has raised hopes that the court will
help solve the mass of disputes that have arisen following
Indonesia's severe economic contraction.


=========
J A P A N  
=========

FUJITA CORP: To restructure with banks' help
--------------------------------------------
Nikkei News reports major condominium marketer Towa Real
Estate Development Co. and its largest shareholder, midsize
general contractor Fujita Corp., are set to restructure
their finances with help from their main banks. The ailing
Towa had asked for Tokai Bank to take on loans totaling 60-
80 billion yen extended to Towa's affiliates. The bank
basically approved the request and is considering
eventually writing off those loans.

Under the rescue program, Tokai Bank will ask for other
financial institutions to reduce or exempt interest
payments on loans to the bank. Towa will repay the
institutions a total of 12 billion yen every year, and
Tokai Bank will make up for the shortage. In the meantime,
Tokai Bank and Sakura Bank are working on a plan to bail
out Fujita by disposing of a combined 120 billion yen of
loans they extended to the firm.

This will be the first time that banks help to restructure
a general contractor by writing off loans after the
establishment of a government system to inject public funds
into financial institutions.

In addition, Fujita may forgive part of its 37 billion yen
of long-term loans to Towa, as well as bills receivable
worth 16 billion yen.


HOKKAIDO TAKUSHOKU: Takeover by North Pacific Bank
--------------------------------------------------
Japan's collapsed Hokkaido Takushoku Bank closed its doors
on a business that spanned nearly a century before being
pulled down by huge had loans. The bank was once Japan's
10th largest commercial bank. Based on the northern
prefecture of Hokkaido, the bank started business in 1900,
but in November last year collapsed under a mountain of bad
loans. Its operation in Hokkaido will be taken over by
North Pacific Bank, while those on the mainland will be
absorbed by Chuo Trust and Banking.


ISUZU MOTORS: Results announcement
----------------------------------
Japan's Isuzu Motors Ltd. said it posted its first interim
pretax loss in five years, hurt by the recession at home
and throughout Southeast Asia. The Japanese truck maker,
which is 37.5% owned by General Motors Corp. of the US,
posted a pretax loss of 5.24 billion yen in the fiscal
first half ended Sept 30. That compares with a 8.73 billion
yen profit in the corresponding period a year earlier.
Isuzu's current fiscal year ended March 31. Isuzu said it
also posted a net loss of 2.33 billion yen, compared with a
net profit of 6.05 billion yen in the same period last
fiscal year.

The company managed to stem the red ink on a net basis
through the sale of its Yamato factory in Kanagawa
Prefecture to Ito-Yakado Co. for 15.59 billion yen earlier
this year. Isuzu originally forecast a net loss of 9.50
billion yen. Sales fell 18% to 467.97 billion yen, compared
with 574.11 billion yen last year. Isuzu said it won't be
paying out a dividend for the first half. The company said
it will continue to strive to reduce its heavy-duty truck
inventory levels but has no plans to temporarily halt
production. Despite the recession in Southeast Asia, Isuzu
said it hopes shipments to North America, Australia and
other markets will support overall exports.


JAPAN AIRLINES: Announces layoffs
---------------------------------
JAL president of Japan Airlines said yesterday he will cut
jobs, reduce wages and hire cheaper foreign workers to
restore the carrier to profitability. Isao Kaneko said he
hopes to increase the ratio to about one quarter by 2001.
Foreigners only accounted for a small fraction of the 6300
flight attendants at JAL in 1991.


JAPAN TRAVEL BUREAU: Results announcement
-----------------------------------------
Nikkei News reports Japan Travel Bureau Inc.'s pretax
profit in the half-year ended September appears to have
plunged 50% to 5.3 billion yen, sources at the No. 1-ranked
tourist agency said. Operating revenue fell 4% to 108.5
billion yen. JTB is maintaining its forecast of posting a
27% year-on-year drop in pretax profit in fiscal 1998.


JAPAN VILENE: To reduce cloth output, cut staff
-----------------------------------------------
Nikkei News reports Japan Vilene Co. will consolidate
output of non woven apparel cloth at its Shiga Prefecture
plant by year-end, ending such production at its Ibaraki
Prefecture facility, company sources said. The move is part
of a scheme to cut by fiscal 2001 output capacity by 30%,
and the number of types of non woven cloth produced by 40%.
The Tokyo-based company will also slash its work force by
180, about 15% of its current payroll, by fiscal 2000. In
addition, it will freeze pay raises for all employees.


SUMITOMO BANK: Plans Y500 bln capital injections
------------------------------------------------
Nikkei News reports Sumitomo Bank on Saturday decided to
request a 400-500 billion yen capital injection from the
government, so that it can sharply increase loan loss
reserves and raise its capital adequacy ratio to 10%, bank
sources said. The government will be asked to buy preferred
shares issued by the bank by the end of December.

In return for accepting public funds, the bank will submit
restructuring plans that call for the closure of 89
domestic branches (30%) and 22 overseas branches (60%) and
2,000 job losses, or 13% of its total work force, over the
next three to four years. Sumitomo's move is expected to
sway other big banks to take similar action, financial
watchers say.


TOKYO FLOWER SECURITIES: Brokerage firm to close operations
-----------------------------------------------------------
Tokyo Flower Securities Co said it is shutting down all of
its operations today. The small privately held Tokyo based
brokerage firm said it has been unable to make a profit
despite a restructuring, and decided to close down because
of intensifying competition as a result of Japan's so-
called Big Bang financial deregulation.

Tokyo Flower said it isn't bankrupt and its liabilities
don't exceed its assets. It said it should be able to
return all the assets of its customers. New Japan
Securities Co. a major shareholder, said it will help Tokyo
Flower wind down its operations, including returning money
and securities to customers.


TOWA REAL ESTATE: To restructure with banks' help
-------------------------------------------------
Nikkei News reports major condominium marketer Towa Real
Estate Development Co. and its largest shareholder, midsize
general contractor Fujita Corp., are set to restructure
their finances with help from their main banks. The ailing
Towa had asked for Tokai Bank to take on loans totaling 60-
80 billion yen extended to Towa's affiliates. The bank
basically approved the request and is considering
eventually writing off those loans.

Under the rescue program, Tokai Bank will ask for other
financial institutions to reduce or exempt interest
payments on loans to the bank. Towa will repay the
institutions a total of 12 billion yen every year, and
Tokai Bank will make up for the shortage. In the meantime,
Tokai Bank and Sakura Bank are working on a plan to bail
out Fujita by disposing of a combined 120 billion yen of
loans they extended to the firm.

This will be the first time that banks help to restructure
a general contractor by writing off loans after the
establishment of a government system to inject public funds
into financial institutions.

In addition, Fujita may forgive part of its 37 billion yen
of long-term loans to Towa, as well as bills receivable
worth 16 billion yen.


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

CHUNGIL INDUSTRY: Trade of Chungil Industry stock suspended
-----------------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the trade of Chungil Industry Company's
stock has been suspended until November 14. The company
recently received approval to start a creditor
reconciliation procedure by the Suwon District Court.


HAITAI BEVERAGE: Haitai Beverage might be sold to Pepsi
-------------------------------------------------------
The Korea Times reports it is likely that Pepsi-Cola will
be the like buyer of Haitai Beverage. Haitai Beverage is
one of the two business units of the Haitai Group that is
scheduled to be auctioned off toward the end of this month.  

Haitai Beverage currently controls 9 percent of the cola
market in Korea with its Combi-Cola. It also has an
extensive business network throughout Korea.  

It was reported last month that plans are to reduce the
Haitai Group to its confectionery unit by converting bank
loans into equity, while using funds raised from the sale
of Haitai Beverage and Haitai Stores (the distribution arm
of the Haitai Group) to write off some of the group's
debts.  

Haitai Beverage and Haitai Stores were earlier reported to
have a combined debt of 700 billion won. Haitai
Confectionery and Haitai Industrial have an estimated joint
debt of 1.4 trillion won. The Korea Herald reported earlier
in August that Haitai's major creditors (including Cho Hung
Bank) have agreed to convert up to 800 billion won of their
loans into equity.

Haitai Confectionery was included on the June 19 list of 55
nonviable firms that were subject to immediate liquidation
as creditor banks are to stop providing them with new
loans. This list was generated at the request of the
Financial Supervisory Commission by the nation's 26
commercial banks which classified their business loan-
clients into three groups -- normal, viable, and nonviable.  


HALLA HEAVY INDUSTRY: Expects court receivership
------------------------------------------------
The Korean language Maeil Kyungje reports that it is likely
that the Halla Heavy Industry Company will be granted court
receivership. The Foreign Exchange Bank, the main creditor
of the company, has said that during the creditors' meeting
to be held on November 16, 1998 at the Kwangju District
Court, creditors are expected to approve a plan in which
most of the debt of Halla Heavy Industry (i.e., 1.35
trillion won, or 64.3% of the total 2.1005 trillion won
debt) will be written off.  


KIA MOTORS: Kia creditors block Hyundai probe
---------------------------------------------
According to the SCMP, Kia Motors Corp. creditors rejected
Hyundai Motor's request to keep examining the books after
discovering more debt than expected. Hyundai can
renegotiate the terms of the purchase if Kia's debt exceeds
the amount claimed by the creditors by more than 10 per
cent.

Hyundai Motor chairman Chung Mong-gyu asked creditors to
extend the examination period by 10 days, saying the
company had so far discovered more debt than that claimed
by Kia's creditors since the examination began on about
October 19. The deadline to complete the process is
November 17.

Kia stock dropped by its daily 12 per cent limit on concern
the latest clash between Hyundai and the creditors may
delay the takeover. Kia sales have been hurt by the lack of
management control since it fell under court receivership.
Any delay in the planned takeover may prompt a further drop
in sales. Creditors are reluctant to oblige. An official at
Kia's main creditor, Korea Development Bank, said, "a
contract is a contract."

Hyundai agreed to pay 1.17 trillion won by March to buy 51
per cent of Kia and Asia Motors, and creditors agreed to
write off 7.17 trillion won of the firm's debt.


SASANG CHUNGANG TRUST CO-OP: Bankruptcy notice
----------------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Sasang Chungang Trust Co-op went
bankrupt. The Co-op's address is 404-8 Tukpo 2-dong,
Sasang-gu, Pusan and the representative is Mr. Kwon
Young-dong.   


TONGSUNG STEEL: Tonsung Steel completes liquidation
---------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Tongsung Steel Company has completed its
liquidation procedure.


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

FGG WOOD MOULDING INDUSTRIES SDN BHD: Winding-up petition
---------------------------------------------------------
Sun Alliance Insurance (M) Sdn Bhd on 15/10/98 petitioned
for the winding-up of FGG Wood Moulding Industries Sdn Bhd.
The petition is directed to be heard on 15/12/98.


GLOBAL TRADING CORPORATION SDN BHD: Voluntary winding-up
--------------------------------------------------------
The members of Global Trading Corporation Sdn Bhd on
9/11/98 resolved to wind-up the company voluntarily.
Creditors are requested to submit their claims before
15/12/98.


HNCEC-AC JV SDN BHD: Winding-up petition
----------------------------------------
Daya Hawa Dingin Sdn Bhd on 17/10/98 petitioned for the
winding-up of HNCEC-AC JV Sdn Bhd. The petition is directed
to be heard on 10/3/99.


MARANG HOLIDAY & RESORT SDN BHD: Winding-up petition
----------------------------------------------------
FMC Kitchen Equipment Marketing Sdn Bhd on 22/9/98
petitioned for the winding-up of Marang Holiday & Resort
Sdn Bhd. The petition is directed to be heard on 14/12/98.


RMF ENTERTAINMENT SDN BHD: Winding-up petition
----------------------------------------------
Picture Image Sdn Bhd on 17/9/98 petitioned for the
winding-up of RMF Entertainment Sdn Bhd. The petition is
directed to be heard on 8/1/99.


RAKAN MUDA CORPORATION SDN BHD: Winding-up petition
---------------------------------------------------
Lyn-Sen Knitting Factory (M) Sdn Bhd on 17/10/98 petitioned
for the winding-up of Rakan Muda Corporation Sdn Bhd. The
petition is directed to be heard on 26/3/99.


SNH CONSULTANCY (M) SDN BHD: Winding-up petition
------------------------------------------------
Oriental Finance Bhd on 27/8/98 petitioned for the winding-
up of SNH Consultancy (M) Sdn Bhd. The petition is directed
to be heard on 18/12/98.


SIME DARBY: Files police reports on securities arm
--------------------------------------------------
Sime Darby filed a police report last month against its
stockbroking arm Sime Securities Sdn Bhd, a decision which
its management took after reviewing an internal
investigation report on the subsidiary. On Saturday, its
chairman Ahmad Sarji told reporters that the internal
report was one of two submitted to Sime Darby as part of a
probe to ascertain the reasons for the near-collapse in its
banking operations.

Sime Darby's chief executive Nik Mohamed conceded that
certain borrowers with large exposures had been the cause
of its problems, but declined to name them. Sime Bank
shocked investors with a 1.8 billion Malaysian ringgit
(S$780.5 million) loss last March, which wiped out its
capital and sent regulators scuttling to come up with a
plan to salvage the bank. Tycoon Rashid Hussain stepped in
to take over the ailing bank.

Sime Darby, which had a 60.35 per cent stake in the bank,
decided to wash its hands of the investment. It has written
down all of its RM2.1 billion investment in the bank.

When Sime Bank first made provisions for its massive
losses, it revealed that RM737.7 million of these bad debts
lay at the commercial bank level, RM712.7 million at the
Sime Securities level and RM102.4 million at Sime
International (Labuan). It also revealed that a quarter of
its loans were share loans, a breach of the 15 per cent
prudential level that the central bank views as a top-
limit. Whether Sime Darby decides to take any action
against its borrowers and management remains to be seen,
analysts said.


WEATHERWELL CORPORATION SDN BHD: Winding-up petition
----------------------------------------------------
Malayan Banking Bhd on 10/11/98 petitioned for the winding-
up of Weatherwell Corporation Sdn Bhd.


ZENIYA MARKETING SDN BHD: Winding-up petition
---------------------------------------------
Kider S.A. on 11/11/98 petitioned for the winding-up of
Zeniya Marketing Sdn Bhd.


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

CIRCUIT ELECTRONICS: To recall loans from Ngarntavee firms
----------------------------------------------------------
The Bangkok Post reports the management of Circuit
Electronics Industries Plc will recall 471.56 million baht
from five companies owned by the Ngarntavee family, the
company's major shareholder. The agreement, a compromise
between the family and the company's minor shareholders led
by Millgate Capital Inc of New York, was reached at an
extraordinary meeting on Friday.

Under the agreement, the company will recall 25 million
baht from the five companies within 30 days of the meeting
and another 25 million baht within the next 30 days. It
will also recall 50% of the remaining 421.56 million baht
in the first half of next year and the rest in the second
half.

Earlier this year, the company's management, led by
managing director Sukit Ngarntavee, decided to extend
471.56 million baht to the five companies of the Ngarntavee
family to help settle their debts.

However, the company's minor shareholders including several
foreign institutional investors, claimed practice and
demanded corrective action, although the management said
the decision had been approved by the shareholders' meeting
in April.

Andrew Delaney, a lawyer from Delaney & Co, which
represented a group of foreign institutional investors,
said the minor shareholders approved the management's
decision to extend 471.56 million baht in loans to the five
companies on condition the money be recalled within the
timeframe agreed. Mr Sukit said the management had
apologised to the shareholders. The decision had been made
to help the five companies, which are considered
subsidiaries, to survive the recession and there was no ill
intent.


PT&T: To submit debt restructuring program
------------------------------------------
According to BusinessWorld, listed telecommunications firm
Philippine Telegraph and Telephone Corp. (PT&T) is set to
submit its debt restructuring plan involving 1.18-billion
Philippine peso (PhP) debt to creditors by mid-November.

PT&T told the Securities and Exchange Commission (SEC)
recently that its two financial advisors, Buenaventura
Filamor Echauz (BFE) and Bear Stearns (Asia) Ltd., are
currently finalizing the said plan to enable the company to
pay off outstanding debts amounting to PhP1.18 billion as
of June this year.

The Santiago-owned telecoms company recently entered into a
memorandum of agreement (MoA) with its creditor-banks
involving the settlement of its financial obligations.
Under the MOA, the company's creditors are not allowed to  
accept nor demand payment from PT&T while it is undergoing
debt restructuring.


PHILIPPINE AIRLINES: PAL seeks deadline extension
-------------------------------------------------
According to the SCMP, prompted by Cathay Pacific Airways,
PAL will ask regulators to extend the deadline for a
rehabilitation plan, tentatively to Dec. 4 or 5, from the
original deadline of Nov. 21, to give Cathay Pacific
Airways more time to complete its due diligence on PAL.

Well-placed sources said Cathay had proposed to inject four
billion pesos of fresh capital into PAL in exchange for a
40 per cent equity stake and management control. It is
understood that Lucio Tan, who has a 78 per cent stake in
the company, will contribute another two billion pesos
towards recapitalising PAL.

Whether or not Cathay Pacific will make a final offer will
depend on the outcome of the due diligence, agreement with
creditors on a comprehensive debt workout, finalisation of
the necessary shareholders' agreement and share
subscription details, and agreement on technical
assistance.

According to the Hong Kong Standard, Cathay Pacific has
indicated it is willing to share management control of PAL
with its present management but it needs a certain degree
of management flexibility to help turn around PAL.

Swire Pacific's public relations general manager Andrew
Herdman said that media reports that Cathay would inject
between HK$3 billion and HK$4 billion into PAL were
incorrect. He said the amount depends on the second due
diligence. He said Cathay would team up with two passive
potential investors but refused to confirm or deny whether
one of them would be the American Insurance Group of the
Philippines.


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

SCOTTS HOLDINGS: Hai Sun Hup likely buyer of 50% stake
------------------------------------------------------
Hai Sun Hup, a publicly-listed shipping and property group,
appears to have emerged as the buyer of part of the 50.6
per cent stake in service apartments operator Scotts
Holdings put up for sale by the Jumabhoy family.

The company is said to have an in-principle agreement with
J P Morgan Securities Asia to buy 24.9 per cent of Scotts.
J P Morgan is the financial adviser to SIS, Scotts
Investment (Singapore), the trustee company of the Jumabhoy
family.

A feud among the Jumabhoy family came into the open in
October 1995 when the 100-year-old patriarch Rajabali sued
his eldest son Ameerali and grandsons Rafiq and Iqbal for
allegedly dealing in the family's 100 million Scotts
Holdings shares without his permission. He wanted the
Ameerali faction to be accountable for the multi-million
dollar share pledges and losses incurred by the business.

But after a long and bitter lawsuit which threw up the fact
that SIS had racked up business losses of some $50 million,
the Court of Appeal threw out Rajabali's case.


TAT LEE SECURITIES: Keppel to take over operations
--------------------------------------------------
Keppel Securities Ltd. will take over the operations of Tat
Lee Securities Ltd. by the end of the year in exchange for
shares valued at S$26.4 million, Keppel Corp., the parent
of both houses, said Sunday.

The takeover, which excludes Tat Lee's seat on the Stock
Exchange of Singapore, has been approved in principle by
the stock exchange and Monetary Authority of Singapore, the
country's effective central bank. Total shareholder's funds
at the combined unit will be about S$140 million, Keppel
said, adding that Tat Lee Securities' dealers and other
staff will be transferred to Keppel Securities, giving the
unit a total of 150 workers.


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

CHAI WANTANA TANNERY PCL: Results announcement
----------------------------------------------
Chai Wantana Tannery PCL reports reviewed quarterly
financial statements as a net loss of Bt11.7 million for
the period ending September 30, 1998. This compares to a
loss of Bt83 million for the corresponding 1997 period.


PAKPANANG COLDSTORAGE PCL: Results announcement
-----------------------------------------------
Pakpanang Coldstorage PCL reports reviewed quarterly
financial statements as a net loss of Bt33.5 million for
the period ending September 30, 1998. This compares with a
loss of Bt460 million for the corresponding 1997 period.


SEA HORSE PCL: Results announcement
-----------------------------------
Sea Horse reports reviewed quarterly financial statements
as a net loss of Bt17.9 million for the period ending
September 30, 1998. This compares with a net profit of
Bt40.9 million for the corresponding 1997 period.


SINO THAI RESOURCE: Results announcement
----------------------------------------
Sino Thai Resource Development PCL reports reviewed
quarterly financial statements as a net loss of Bt6.18
million for the period ending September 30, 1998. This
compares with a loss of Bt42.9 million for the
corresponding 1997 period.


THAI PETROCHEMICAL: TPI says 70% of creditors back solution
-----------------------------------------------------------
The Bangkok Post reports Thai Petrochemical Industry is
confident major creditors will vote in favour of a debt
restructuring plan featuring a debt-for-equity swap giving
lenders a 30% stake in the industrial giant. If approved at
the December 3 meeting, a formal contract could be signed
early next year.

Prachai Leophairatana, chief executive of TPI, said about
70% of the group's major creditors, led by Bangkok Bank and
German development bank Kreditanstalt fur Wiederaubau, had
agreed to the restructuring plan.

The debt-for-equity conversion would help cut the company's
debt service costs from an annualised 10% to about 6-7%.
TPI's outstanding debts total about $3 billion, with
another $1 billion in debts at subsidiary TPI Polene.
The plan calls for TPI to settle its debts within five
years, faster if economic conditions permit.

Meanwhile, the recent appreciation of the baht has also
helped cut some of the debt service burden off TPI's
foreign loans. The company posted an accounting profit of
20 billion baht in the third quarter, reflecting recent
gains in the value of the baht.


UNITED FOODS PCL: Results announcement
--------------------------------------
United Foods PCL reports reviewed quarterly financial
statements as a net loss of Bt21.8 million for the period
ending September 30, 1998. This compares with a loss of
Bt139 million for the corresponding 1997 period.


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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