---

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, December 4, 1998, Vol. 1, No. 200

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS: Nam Tai Electronics acquires majority stake
GUANGDONG INTERNATIONAL: Meeting with HK creditors delayed
PALIBURG HOLDINGS: Henderson buys Paliburg stake
PALIBURG HOLDINGS: Reprieve seen for Century, Paliburg
TIN TIN YAT PAO: Tin Tin publisher gains aid


* J A P A N *

DAISHI BANK LTD: S&P Downgrades Daishi
KAO: Completes IT asset sales
NED CORP: Chooses Warburg as proxy for sale
NIKKO SECURITIES: S&P reviews ratings
NISSAN: Accelerates asset sales to cut debt


* K O R E A *

HANBO STEEL: Creditors try to sell steelmaker
KIA MOTORS: Chung Mong-ku to head Hyundai/Kia Motors
SAMSUNG: Government confirms car business swap with Daewoo


* M A L A Y S I A *

BASIC APPAREL (M) SDN BHD: Winding-up petition
BERJAYA LAND: Ditches purchase plans
FAR EAST MANAGEMENT & RESOURCES: Winding-up petition
THE IMAGE MAKERS SDN BHD: Winding-up petition
JOHOR BAHRU EMULSION: Voluntary winding-up

LMS ENGINEERING SDN BHD: Winding-up petition
MUSTRALITE SDN BHD: Winding-up petition
OMEGA SECURITIES: Liquidity shortage forces retrenchments
RASHID HUSSAIN: Doubts linger about bad debts
SPECTRE CONSULT SDN BHD: Winding-up petition

TENAGA NASIONAL: Sells power plant to Powertek


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

METRO PACIFIC: Sells packaging unit
PHILIPPINE AIRLINES: Cathay aborts PAL rescue bid


* S I N G A P O R E *

VAN DER HORST: Results announcement


* T H A I L A N D *

KRUNG THAI BANK: Possible role as holding firm
SAHAVIRIYA OA: Details on Acer Computer's stake
SAMART CORP: Disposes of shares in Samart Infonet
TELECOMASIA: Subsidiary approves capital increase
THAI PETROCHEMICAL: Creditors to consider plan


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

ALBATRONICS: Nam Tai Electronics acquires majority stake
--------------------------------------------------------
PR Newswire Nam Tai Electronics, Inc. (Nasdaq: NTAIF and
NTAWF) today announced the completion of the acquisition of
a majority interest in Albatronics (Far East) Company
Limited, a publicly listed Hong Kong company. Under the
terms of the subscription agreement first announced on
September 14, 1998, Nam Tai acquires 200,002,000 shares
representing a majority control interest of slightly more
than 50% of the enlarged capital stock of Albatronics, for
approximately US$10 million including transaction expenses.

Albatronics directors, including Chairman Mr. K. Wakaki,
and CFO Mr. F. Nakahara, will maintain an aggregate
ownership interest of approximately 24.9%.

In its most recent fiscal year ended March 31,1998,
Albatronics reported sales of US$353 million and net income
of US$2.9 million on an audited basis. For the five months
ended August 31, 1998, Albatronics reported sales of US$130
million and a net loss of US$31 million, including an
operating loss of approximately US$14.2 million and
exceptional provisions of US$16.9 million, all on an
unaudited basis. As at August 31, 1998, Albatronics
reported unaudited deficiencies in both working capital and
shareholders' equity of approximately US$56.3 million and
US$22.6 million, respectively.

Albatronics is a contract manufacturer of consumer
electronics in the OEM business with offices in Hong Kong,
manufacturing facilities close by in China, and a similar
corporate culture with mostly Japanese management",
commented Mr. Murakami, Nam Tai's Chairman.

Nam Tai has indicated that it intends to take reasonable
steps to support Albatronics in sourcing funds as and when
required. Such support is dependent on the results of Nam
Tai's comprehensive study, expected to be completed before
the end of March 1999 under the direction of M.K. Koo,
Senior Executive Officer, investigating opportunities for
corporate restructuring and streamlining of overhead
expenses within Albatronics.

Nam Tai has appointed Deloitte Touche Tohmatsu, the present
auditors of Albatronics, as the auditors of both Nam Tai
and Albatronics. This will apply for the completion audit
as of November 30, 1998 and the year-end audit at December
31, 1998. Nam Tai's previous accounts were audited by
PricewaterhouseCoopers. PricewaterhouseCoopers have
informed Nam Tai of its resignation as auditors of Nam Tai.


GUANGDONG INTERNATIONAL: Meeting with HK creditors delayed
----------------------------------------------------------
The Asian Wall Street Journal reported the Hong Kong
Association of Banks has postponed its meeting with Beijing
banking officials about the unpaid debts of the failed
Guangdong International Trust & Investment Corporation
(GITIC) until probably next January. The reason for the
delay was that the Hong Kong association decided it would
be better to send written questions from their membership
first, and later meet in Beijing to hear the responses.

There are reportedly dozens of questions from the banks,
and they have yet to be organized into a single Chinese
language document free of duplicate inquiries.  

GITIC was the official the investment arm of the Guangdong
government, and the second largest such institution in
China. It was closed by the Chinese government on October
6, and is currently in the middle of a 90-day moratorium on
debt repayment while a liquidation team investigates its
assets.


PALIBURG HOLDINGS: Henderson buys Paliburg stake
------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Henderson Land Development has acquired Paliburg
Holdings' 8 per cent interest in a Fanling residential
development for between $200 million and $300 million.
Henderson chairman Lee Shau-kee said it was a good price
and the deal was easy and closed fast. He said Henderson
had no plans to take a stake in Paliburg or buy other
assets from the debt-ridden developer. He said deals for
other Paliburg assets such as hotels would be more
complicated and would need more time for assessment.
Henderson and Paliburg were among 12 developers who bought
the Fanling site for development for $2.04 billion at a
government auction in May 1994.


PALIBURG HOLDINGS: Reprieve seen for Century, Paliburg
------------------------------------------------------
According to the Hong Kong Standard, a banking source said
most bankers of Century City and Paliburg are ready to give
the two financially stricken groups until the end of June
next year to sell some of their assets to settle hundreds
of millions of dollars in debts which have fallen due.

Creditors are expected to demand debentures over other
assets of the two groups as among the major conditions
before agreeing to a standstill deal on matured or maturing
loans. They have also asked the two groups to disclose in
one or two weeks a much-awaited timetable for disposal of
some of their assets. At about that time, the lead
creditor, HSBC, would disclose the terms and conditions of
a standstill deal which it is drafting, and which the two
groups will have to agree to before a formal standstill
deal can be put in force and the bankers have not pushed
Century City and Paliburg to repay their loans as
scheduled.

Century City had about $574 million of loans which fell due
on Oct 31. It has not arranged a bridge financing and its
bankers have agreed to a de facto standstill. Paliburg has
said it had been in talks with potential buyers for the
sale of part or the whole of its stake in Regal Hotels.


TIN TIN YAT PAO: Tin Tin publisher gains aid
--------------------------------------------
According to the South China Morning Post, ailing publisher
Culturecom Holdings, which owns the Chinese-language Tin
Tin Daily News, is to receive a cash infusion from new
substantial shareholder Viagold Capital. Newly appointed
director Cheung Wai-tung said Culturecom's financial
position will be assessed before the size of the infusion
is decided. He maintained that the company had the rights
to publish the newspaper which is the subject of a dispute
and expressed confidence that the dispute would be settled.

The rights to publish Tin Tin Daily News have been owned by
Tin Tin Yat Pao (International), which is being liquidated
by Deloitte Touche Tohmatsu. Culturecom has been publishing
the newspaper based on a 1987 agreement with Tin Tin Yat
Pao. Culturecom abandoned its option to renew the agreement
in September but continued to publish the newspaper.

Deloitte said yesterday it had applied for an injunction to
stop Culturecom printing and publishing Tin Tin Daily News
and was seeking other relief from the High Court. A hearing
into the application will not be held until next year.

Mr Cheung said Viagold, whose key businesses include a
high-technology science park in Beijing, intended to start
electronic-related business in Culturecom. He said Viagold
had pledged to maintain Culturecom's core business --
publishing Tin Tin Daily News and comic books.

Viagold is listed on the Sydney stock exchange and is 75
per cent controlled by Harvest Smart, which in turn is
controlled by businessmen Joseph Lee, Kung Tien-mei,
Manayan Henry Chang and Brian Kronstad.

According to the Hong Kong Standard, these four are
Americans, the first three of being Chinese Americans. They
own the British Virgin Islands-registered company Harvest
Smart, which is the holding investment firm owning Viagold.

Mr Cheung said his plan to introduce new technology into
the printing business includes setting up an Internet
system for Tin Tin Daily News. He said he and members of
Viagold would not be involved in the editorial decisions of
Tin Tin Daily News.


=========
J A P A N  
=========

DAISHI BANK LTD: S&P Downgrades Daishi
--------------------------------------
The Asian Wall Street Journal reported that the Standard &
Poor's Ratings Group (S&P) has lowered its rating of Daishi
Bank Ltd. from Api to BBBpi. This move reportedly reflects
this bank's increasing loan problems and credit costs.  
Daishi Bank's home market is in the Niigata Prefecture,
where it continues to enjoy a strong market position.


KAO: Completes IT asset sales
-----------------------------
The Financial Times reports Kao, the Japanese cosmetics and
toiletries group, yesterday concluded the restructuring of
its information technology division by selling most of its
remaining assets to Zomax Optical Media, a US compact disc
maker, for about $60m. Kai would not five details of the
operation's sales and profits, but said the businesses, in
the US, Canada, Ireland and Germany, represented the core
of its IT operations, which had generated sales of Y40bn
last year.

The deal ends Kao's withdrawal from information technology,
although the division still has some land and building in
the US.


NED CORP: Chooses Warburg as proxy for sale
-------------------------------------------
Nikkei English News reports Long-Term Credit Bank of Japan
affiliate NED Corp. will appoint Warburg Dillon Reed as its
proxy to negotiate a sale of its venture capital division,
NED sources said Wednesday. NED, which is scheduled for
liquidation, began discussing such a sale with financial
institutions and institutional investors in late October.
It hopes to speed negotiations by appointing a proxy,
aiming to conclude a sale within this year. Potential
buyers may be reluctant to meet NED's demand that they
retain the 60 employees not seconded to the failed company
by LTCB, however.

The venture capital division of NED has invested 45 billion
yen in some 500 start-ups in Japan and abroad. "Only about
20% of these companies will eventually be able to go
public, however," says a source close to the company,
because many are in poor shape and the market for public
offerings is sluggish.


NIKKO SECURITIES: S&P reviews ratings
-------------------------------------
The Financial Times reports Standard & Poor's yesterday
placed the ratings of Japan's Nikko Securities under
review, with negative implications. The rating agency said
Nikko's business was likely to "remain under intense
pressure and could deteriorate further in the medium term."
S&P also cited increasing concerns about how beneficial
Nikko's alliance with Citigroup might be. The US company,
combining Citicorp and Travelers, is taking a 25 percent
stake in Nikko, which is putting its businesses outside
Japan into a joint venture with Salomon Smith Barney,
Citigroup's investment banking subsidiary.


NISSAN: Accelerates asset sales to cut debt
-------------------------------------------
The Financial Times reports Nissan is accelerating efforts
to reduce its heavy dabt burden by selling assets and
turning idle properties into cash-generating businesses.

The company said yesterday it had agreed to sell 66.6
percent of Nissan Graphic Arts, a wholly owned subsidiary
that designs company brochures, to TBWA Worldwide, part of
Omnicom, the global marketing group. The move follows
Nissan's sale of a controlling stake in Nippo, its
advertising arm, to TBWA in September.

Nissan would not comment on the price of the sale, which is
ecpected to take place late this month. The timing would
allow the car company to post additional extraordinary
gains in the second half.


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

HANBO STEEL: Creditors try to sell steelmaker
---------------------------------------------
The Associated Press reports after failing three times to
find a buyer for Hanbo Steel Industry Co., creditors say
they are willing to sell off the bankrupt steelmaker piece
by piece if necessary.

"We've decided to open our doors to all kinds of offers" in
a new auction tentatively set for Dec. 15, said Chung Ki-
hyun, a spokesman for Korea First Bank, Hanbo Steel's chief
creditor. Bidders can seek to buy facilities only, or the
entire company, Chung said.

Local media, quoting unidentified sources, said U.S. Steel
and other steelmakers from China, Taiwan, India, Brazil and
the Netherlands have shown interest. Three previous
auctions last year failed because potential buyers wanted
to take over only certain facilities, not the whole company
including its debts.

A prosecution investigation into Hanbo's bankruptcy
uncovered a major bribes-for-loans scandal involving
politicians, bankers and government officials. About a
dozen people, including Hanbo's owner, Chung Tae-soo, were
convicted of giving or taking bribes in exchange for low-
interest bank loans used to keep the company afloat.

Hanbo is the second major South Korean firm to be put on
the auction block. Kia Motors Co., which collapsed last
year with $1 billion in bank loans, was recently sold to
South Korean carmaker Hyundai Motor Co.


KIA MOTORS: Chung Mong-ku to head Hyundai/Kia Motors
----------------------------------------------------
Hyundai Business Group announced Thursday the appointment
of group chairman Chung Mong-ku, a son of Hyundai founder
Chung Ju-yung, as the new chairman of its automobile
division, which now includes the newly acquired Kia Motors
in addition to Hyundai Motor. The current chairman, Chung
Mong-kyu, who is the elder Chung's nephew, was appointed to
the post of vice chairman. The honorary chairman of Hyundai
Motor, Chung Se-yung, a younger bother of the Hyundai
founder, was nominated as the chairman of the boards of
directors both of Hyundai Motor and Kia Motors.

Sources close to the group said that the sibling rivalry
between Chung Mong-ku (MK), who is the eldest son and Chung
Mong-hun (MH), his younger brother, will likely become more
fierce. MH has been in the spotlight in recent years, most
recently, overseeing Hyundai's recent business ventures
into North Korea. The younger brother has also served as
chairman of Hyundai Electronics and the head of the
flagship company of the group, Hyundai Engineering and
Construction.

Also, in a measure to restructure its subsidiaries, Hyundai
said that two of its automobile-related affiliates, Hyundai
Automobile Service and Hyundai Precision Engineering, would
be merged with Hyundai Motor before the end of the year.
The group also announced that the Kia brand name would be
maintained for cars produced by that company, irregardless
of the merger.


SAMSUNG: Government confirms car business swap with Daewoo
----------------------------------------------------------
The Associated Press reports Samsung Business Group was
near agreement on swapping its car-making company with a
subsidiary of another South Korean conglomerate, a senior
presidential aide said today. Kang Bong-kyun, chief
economic aide to President Kim Dae-jung, said the deal  
would cap months of government efforts to persuade South
Korea's conglomerates to swap or merge some of their major
overlapping subsidiaries.

Kang refused to divulge details. But local news media,
quoting unidentified government officials, reported Samsung
would trade Samsung Motors Co. to Daewoo for its Daewoo
Electronics Co.

Officials at Daewoo and Samsung refused to comment on
Kang's remarks.

President Kim wants the conglomerates to finish the shakeup
by the end of the year to regain investors' confidence. He
has threatened to withhold loans from state-controlled
banks unless the conglomerates restructure. The
International Monetary Fund demanded a reorganization of
the conglomerates when it granted South Korea a $58 billion
bailout in December.

A swap would leave South Korea with two major car makers --
Daewoo Motors and Hyundai Motors. Earlier this year Hyundai
took over Kia Motors Corp., which collapsed last July
triggering South Korea's economic crisis.


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

BASIC APPAREL (M) SDN BHD: Winding-up petition
----------------------------------------------
Lion Subang Parade Sdn Bhd on 27/11/98 petitioned for the
winding-up of Basic Apparel Sdn Bhd.


BERJAYA LAND: Ditches purchase plans
------------------------------------
Singapore Business Times reports Berjaya Land, controlled
by tycoon Vincent Tan Chee Yioun, has aborted its plans to
buy land worth 303 million Malaysian ringgit (S$131
million) from its parent, the Berjaya Group. Similarly,
plans for Transwater Corporation to buy an 80 per cent
stake in Tioman Island Resort from Berjaya Land for RM137.7
million cash have also been aborted.


FAR EAST MANAGEMENT & RESOURCES: Winding-up petition
----------------------------------------------------
Perwira Affin Bank Bhd on 6/10/98 petitioned for the
winding-up of Far East Management & Resources Sdn Bhd.
The petition is directed to be heard on 10/2/99.


THE IMAGE MAKERS SDN BHD: Winding-up petition
---------------------------------------------
Asia-Pacific Videolab Sdn Bhd on 11/8/98 petitioned for the
winding-up of The Image Makers Sdn Bhd. The petition is
directed to be heard on 13/1/99.


JOHOR BAHRU EMULSION: Voluntary winding-up
------------------------------------------
The members of Johor Bahru Emulsion Industry Sdn Bhd on
1/12/98 resolved to wind-up the company voluntarily.
Creditors are requested to submit their claims before
3/1/99.


LMS ENGINEERING SDN BHD: Winding-up petition
--------------------------------------------
Mecomb Engineering Sdn Bhd on 27/11/98 petitioned for the
winding-up of LMS Engineering Sdn Bhd.


MUSTRALITE SDN BHD: Winding-up petition
---------------------------------------
Teknopuri Sdn Bhd on 2/11/98 petitioned for the winding-up
of Mustralite Sdn Bhd. The petition is directed to be heard
on 13/1/99.


OMEGA SECURITIES: Liquidity shortage forces retrenchments
---------------------------------------------------------
Asia Pulse cites a Bernama report that Omega Securities Sdn
Bhd, has implemented a retrenchment exercise on its
employees in a move it considered as part of a necessary
cost reduction. The Kuala Lumpur Stock Exchange (KLSE), in
a statement here said the stockbroking company faces a
severe liquidity constraint and it has not been able to
continue with its main income generating activities
following the revocation of its stockbroking licence on
June 5, 1998.

Omega's receivers and managers (R&M), which were appointed  
on June 9, 1998, were compelled to undertake the exercise
in order to protect the interests of the public and the  
stockbroking company.

The exchange also said that there was no further reason to  
maintain the full complement of the employees of Omega
except certain employees who are required to assist the R&M
in their duties. Since receivership, more than half of
Omega's 242 employees have resigned.


RASHID HUSSAIN: Doubts linger about bad debts
---------------------------------------------
A report on the South China Morning Post said that
financial services group Rashid Hussain may have solved its
debt problems with a US$870 million recapitalisation plan
and analysts said Rashid chairman Abdul Rashid Hussain had
saved the company from the stigma of a bailout, but the
deal could prove inadequate if non-performing loans rose.

It will buy property and plantation assets from Pahang
State Economic Development Corp (SEDC) for M$530 million
based on market value and net tangible assets.

Analysts are divided on the impact of the deal. Some say it
will depend on details of the pricing which are not
announced yet. Some say Rashid could need funds again soon.

According to analysts, the injection of assets could dilute
Rashid's focus from financial services and the gain might
not be comparable to Rashid's 29 per cent stake for it. The
deal was finalised after months of anxious hunting for a
partner and makes a new investor the biggest shareholder.

On Monday, the chairman said all of the group's short-term
debts would be wiped out after the restructuring. Abdul
Rashid's stake will be reduced to 17.5 per cent from 29.6
per cent. The stake of Malaysian Resources Corp will be cut
to 16.1 per cent from 27.3 per cent and the Pahang SEDC
will become the biggest shareholder with a 29 per cent
stake. Civil Service pension fund Kumpulan Wang Amanah
Pencen will be a new big shareholder with an 11.9 per cent
stake through another issue of new Rashid shares. It will
pay $170.9 million in cash. Danamodal Nasional, the bank
recapitalisation agency, said it would buy a 30 per
cent stake in RHB Bank, owned by Rashid subisidiary RHB
Capital. The $725.4 million RHB Capital gets from Danamodal
will be used to repay debts.


SPECTRE CONSULT SDN BHD: Winding-up petition
--------------------------------------------
Perwira Affin Bank Bhd on 24/8/98 petitioned for the
winding-up of Spectre Consult Sdn Bhd. The petition is
directed to be heard on 2/3/99.


TENAGA NASIONAL: Sells power plant to Powertek
----------------------------------------------
Singapore Business Times reports Malaysian utility Tenaga
Nasional Bhd will sell a power plant to private power
company Powertek Bhd in what is seen as an early sign of
restructuring in the industry.

Tenaga said late on Tuesday it will sell the 330 MW
facility in Malacca state to Powertek for 740 million
Malaysian ringgit (S$321 million). Tenaga said the disposal
was a first step in its strategy to position itself ahead
of industry restructuring.

Analysts said it was a right move for Tenaga, which is
expected to eventually rid itself of generation assets,
lower costs and focus on transmission and distribution.
"This will be negligible in terms of impact on Tenaga's
balance sheet immediately, but it is a step in the right
direction for Tenaga," said Lucius Chong, analyst with
Pesaka Jardine Fleming in Kuala Lumpur.

Tenaga will accept RM296 million in cash and stagger the
remaining RM444 million payment over six years and combine
it with an option for acquiring up to 27.85 per cent of
Powertek's equity. Tenaga said the RM444 million balance,
payable every half-year, will carry interest of 7 per cent
per annum.


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

METRO PACIFIC: Sells packaging unit
-----------------------------------
Singapore Business Times reports Metro Pacific Corp said
yesterday its packaging unit sold its remaining 60 per cent
stake in Starpack Philippines Corp to VAW Europack GmbH of
Germany for 700 million pesos (S$29.6 million).

The transaction gives Europack, which bought 40 per cent of
the Manila-based flexible packaging company in 1996, full
ownership of Starpack. VAW Europack is a unit of
diversified utility Viag AG.

Steniel Manufacturing Corp, Metro Pacific's packaging arm,
will book a gain of 275 million pesos in the fourth
quarter. Metro Pacific, the Philippine flagship of
Hongkong's First Pacific Co, will record a gain of 202
million pesos. Proceeds from the sale will be used to pare
debt of the two companies, First Pacific said in a
statement.

In July, Metro Pacific sold its stake in money-losing
Holland Paper Inc, a maker of tissue and toilet paper. That
followed its divestment of Philippine Cocoa Corp in 1997.
Last week, First Pacific paid 29.7 billion pesos to buy a
controlling 17 per cent stake in PLDT, the country's
biggest phone company.


PHILIPPINE AIRLINES: Cathay aborts PAL rescue bid
-------------------------------------------------
According to the South China Morning Post, Cathay Pacific
Airways yesterday said talks to take control of the
bankrupt Philippine Airlines (PAL) were terminated citing
irreconcilable differences. The news came as a blow to
Philippine president Joseph Estrada. Alternative talks with
Northwest Airlines also appear to have collapsed. Mr
Estrada said he would ask Cathay to reconsider its
position.

Talks stumbled last week over a rumored Cathay plan to lay
off an additional 3,000 PAL employees, including some
pilots supposedly loyal to the Tan regime. But a Cathay
spokesman said there was greater disagreement over how much
PAL would be worth, and as the negotiations continued,
Cathay felt that full management control over PAL's
operations would not be possible. Cathay said the two
companies were jointly working on a proposal to restructure
US$2.1 billion in debt.

Cathay reportedly felt PAL would lose more than $800
million over the next 10 years because the restructuring
would entail a considerable streamlining of its business.
PAL said it would lose no more than $200 million over the
period.

Mr Estrada said he could ask Cathay to reconsider their
position. He also confirmed that negotiations with
Northwest had broken down. Some analysts doubted whether
PAL had conducted serious talks with parties other than
Cathay, saying Mr Estrada's past statements looked more
like political bargaining ploys. There was no official
statement from Northwest Airlines saying they were
interested in PAL.

According to the Hong Kong Standard, a Cathay spokesman
said the company did not take its decision lightly and it
was unlikely Cathay would revisit its decision in the
absence of a fundamental change in the situation. A source
in Manila said Cathay winded up on Tuesday an ad hoc
office in a luxury hotel in the business district of
Makati.

The head in Manila of Cathay's prospective joint venture
partner, the International Finance Corp, Mr Vitul Prakash
said, "I can't really say now if we're proceeding with our
proposed investment in PAL."


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

VAN DER HORST: Results announcement
-----------------------------------
Singapore Business Times reports Van der Horst, the
mainboard-listed company of Indonesian businessman Johannes
Kotjo, yesterday reported a whopping $222 million loss that
was five-and-a-half times the size of its group turnover of
$40.21 million for the financial year ended Sept 30, 1998.

While most market observers expected the company to be
deeply in the red, the magnitude of the loss was still a
shock to most market followers of the engineering stock,
whose Indonesian connections at one time made it the
darling of investors. Those same connections are now the
firm's bane, being largely responsible for the huge loss.

VDH's group operating loss of $165 million before interest,
depreciation and exchange difference was attributed mainly
to a one-time provision of $155 million.

The group's results were further eroded by extraordinary
losses of $30.8 million, largely arising from a review of
the diminution in the Singapore dollar book value of
investments in overseas units. The losses were offset in
part by an extraordinary gain of $8.5 million from the sale
of the screen manufacturing plant which was reported in the
first half.

As reported on Oct 26, the group was negotiating a
standstill agreement with its lenders following a technical
breach of its loan agreements, arising from the forced sale
of some of Mr Kotjo's equity in the company.


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

KRUNG THAI BANK: Possible role as holding firm
----------------------------------------------
The Bangkok Post reports Krung Thai Bank could be
restructured into a holding firm overseeing seven
departments, bank chairman Mechai Viravaidya said
yesterday.

A plan to be presented to the Bank of Thailand will
restructure operations to streamline Krung Thai's
businesses and boost efficiency at the state-owned bank.

Asian Development Bank and the International Finance
Corporation, the investment arm of the World Bank, to
invest a combined US$20 million to $30 million in Krung
Thai Bank shares.

Yesterday Chulachit Bunyaketu, managing director of Thai
Oil, resigned his position as a director of Krung Thai
Bank.


SAHAVIRIYA OA: Details on Acer Computer's stake
-----------------------------------------------
The Nation reports Taiwan's Acer Computer International Ltd
will acquire a majority stake in Sahaviriya OA Plc (SVOA)
and develop it into a leading IT product and service
provider in Thailand and Indochina. The equity acquisition
memorandum of understanding was signed on November 24.

Jack Min Intanate, SVOA executive chairman and chief
executive officer, said Acer Computer International will
hold more than 50 percent in the company, by capital
injection and a converting some debt to equity, if the debt
restructuring plan is approved by creditors, existing
shareholders, and the Stock Exchange of Thailand.

SVOA owes US$18 million to Acer Computer International.
Part of the debt will be converted to equity. The remaining
equity will be held by creditors, existing shareholders,
and new small investors. Creditors are expected to approve
the debt restructuring plan in the next 30 to 45 days, he
added.

After Acer Computer International's equity acquisition,
SVOA will retain its existing businesses including System
Integration, IT superstore, Channel Distribution,
Telecommunication Equipment Trading, joint venture business
with Epson, and will oversee Acer Thailand and Indochina
operations.

The joint venture with Acer Computer International will
strengthen SVOA, according to Jack, who added, SVOA aims to
reduce its debt to equity ratio from about 4:1 to 1:1 after
debt restructuring. It has paid up registered capital of
300 million baht ($8.3 million) with about 4 billion baht
($111.0 million) assets. Interest payment in the first
nine months amounted to 473.4 million baht ($13.1 million).

Seamico Securities Plc and Churchill Pryce Capital Partners
(Asia) Ltd will oversee the debt restructuring plan. Saiwa
Securities (HK) Ltd is working on the business alliance.


SAMART CORP: Disposes of shares in Samart Infonet
-------------------------------------------------
Samart Corporation Plc. has announced its board approved
the sale of shares in Samart Infonet Co., Ltd SIF and other
internet business related assets in SAMART to MIH ASIA BV
at the total amount of Baht 55 million.

SIF has faced losses since its establishment and at
present SIF has the net book value of minus Baht 46 per
share. In order to enhance it competitiveness, the company
is required to expand and upgrade its network equipments
which required significant amount of fund. However, under
present circumstance SIF cannot seek the financing by
itself. Therefore, SAMART considered that this disposal
will be the benefit not only to reduce burden of SAMART in
the unprofitable business but also increase liquidity of
SAMART.


TELECOMASIA: Subsidiary approves capital increase
-------------------------------------------------
Telecomasia Corporation PCL has informed the SET of the
activities of Telecom Holding Company Limited (TH), a
99.99% owned subsidiary.

An extraordinary shareholders meeting of Interactive Media
Services Company Limited, Lines Technology (Thailand)
Company Limited and Asia Information Access Company
Limited, a 99.99% 95.83% and 94.99% owned subsidiary of TH,
respectively resolved to approve the increase in its own
capital. TH will subscribe all of these newly increased
shares because other shareholders refuse to do so. Later
on, TH's Board of Directors meeting resolved as informed by
the said companies.

Consequently, the subscription of the newly increased
shares of above three companies of TH total Baht
260,430,000. Based on the criteria of the Company and its
subsidiaries net tangible assets, which as of September 30,
1998 are Baht 17,665.67 million, this transaction
represents 1.47% of such amount.


THAI PETROCHEMICAL: Creditors to consider plan
----------------------------------------------
The Asian Wall Street Journal Reported that the 140
creditors of the Thai Petrochemical Industry PCL (TPI) will
meet today to vote on a complex restructuring plan to deal
with its $3.2 billion debt.  

Details of the plan released earlier include a provision to
first extending the maturities of all short-term loans
totaling $1.09 billion to five years, and converting $300
million to $400 million worth of loan interest repayment
into equity. The announced overall all goal is to reduce
the company's debt-to-equity ratio from 2.78 to 1.5. At the
end of the fifth year, which is the time all of the short
term loans will have been repaid, a new plan will be drawn
up to address the remaining debt.

TPI will also commit to raising $700 in new capital.

In October, TPI, and its unit TPI Polene PCL, began an
indefinite suspension of the repayment of the principal on
foreign currency loans, although they are still servicing
the interest. TPI is working with a 14-member Creditor
Steering Committee that represents 130 foreign and 12 Thai
creditors.


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 * * *