---

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, December 22, 1998, Vol. 1, No. 212

                    Headlines


* C H I N A   &   H O N G   K O N G *

CHINA INVESTMENT BANK: To cease commercial banking
LAI SUN DEVELOPMENT: $880m issue to relieve cash flow
LAI SUN DEVELOPMENT: Writ hits hopes of selling hotel stake
MUJIRUSHI RYOBIN HONG KONG: Muji liquidators appointed
SING TAO HOLDINGS: Sing Tao's buyer may need partner

THEME INTERNATIONAL: Theme goes ahead with Fitlady deal
TIANJIN INTERNATIONAL: Itic clears its samurai debt on time


* J A P A N *

FUJITA CORP: Haseko seeks debt relief
HASEKO: Haseko plan calls for huge debt write-off
NISSAN MOTOR: Could close plants in Japan


* K O R E A *

DAEWOO ELECTRONICS: Agreements don't include core details
JINRO COORS: Coors plans to bid at auction
SAMSUNG MOTORS: Agreements don't include core details


* M A L A Y S I A *

AMMB HOLDINGS BHD: Results - 30/9/98
AD LOGISTICS (M) SDN BHD: Voluntary winding-up
AMSTEL SDN BHD: Winding-up petition
CAM ADVANCED TECHNOLOGIES (M) SDN BHD: Winding-up petition
DAX FOODS SDN BHD: Winding-up petition

DIVERSIFIED RESOURCES: Results announcement
GIN CHEONG INDUSTRIES SDN BHD: Winding-up petition
HAU WAI ENGINEERING SDN BHD: Winding-up petition
JAGUH ANGKUT BERAT SDN BHD: Winding-up petition
KONTREK JAMARAZ SDN BHD: Winding-up petition

NUNICOS HOLDINGS SDN BHD: Voluntary winding-up
PAN MALAYSIA AERIAL APPLICATORS: Winding-up petition
PARADIGM INFO-SYSTEMS (M) SDN BHD: Winding-up petition
PARIT PERAK: In talks to restructure repayment
PROVEN DEVELOPMENT SDN BHD: Winding-up petition

SANKO METAL INDUSTRIAL (M) SDN BHD: Voluntary winding-up
SIN-MAH AGENCIES SDN BHD: VOLUNTARY WINDING-UP
WOVENTEX CORP BHD: Results - 31/7/98


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

VITARICH: Creditor banks OK PhP3-B debt restructuring


* S I N G A P O R E *

ASIA PULP & PAPER: Harnischfeger acts on contract troubles


* T H A I L A N D *

ALPHATEC: New adviser approved by creditors
SRITHAI SUPERWARE: Showcase deal with Berli Jucker fails
TPI POLENE: Sets debt deadline for creditors
TELECOMASIA: Seeking escape from cordless telephone project


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

CHINA INVESTMENT BANK: To cease commercial banking
--------------------------------------------------
BBC Asia Pacific Political reports China Investment Bank
(CIB) will cease its commercial banking activities after
merging with the China State Development Bank (SDB),
President of the SDB Chen Yuan announced here today.
With the approval from the People's Bank of China, the CIB
was merged with the CIB on 11th December, with all of its
creditor's rights and liabilities being assumed by the CIB.

Chen went on to say that the merger is being carried out in
an orderly way, and the restructuring of the CIB is
expected to be accomplished in the first quarter of 1999.
According to Chen, the assets and liabilities of the CIB
constitute only one ninth of that of the SDB and, as a
result, the merger will only have little impact on the
SDB's asset quality.


LAI SUN DEVELOPMENT: $880m issue to relieve cash flow
-----------------------------------------------------
According to the South China Morning Post, market sources
said debt-ridden Lai Sun Development is launching a one-
for-one rights issue to raise about $880 million before
expenses to help relieve pressure on its cash flows.

The rights shares would be priced at 50 cents each, a 57.6
per cent discount to the last trading price of $1.18. The
issue will be arranged by HSBC. Trading in Lai Sun
Development and the other two listed companies of the group
-- parent Lai Sun Garments and hotel arm Lai Sun Hotels
International -- was suspended yesterday morning pending
the exercise.

Analysts said the substantial discount reflected the
group's desperation to raise funds to help repay heavy
debts, estimated at more than $9 billion.

In June this year Lai Sun Development launched a $503
million one-for-two rights issue and in August it launched
a $153 million new share issue to Nan Fung Textiles
Consolidated.

Analysts said investors were cautious about the Lai Sun
Group because of its heavy debt exposure and poor earnings
prospects. Its debt-to-equity ratio was estimated at 50 per
cent. Profit fell 65.8 per cent to $309.38 million for the
year to July 31. Lai Sun Garment's net profit fell 78.96
per cent to $66.51 million during the year.

Analysts said Lai Sun was one of the hardest hit property
companies during the property downturn and punitive
interest rate environment. Since the start of the year, it
had disposed of a number of assets, raising more than $3
billion. Last month, Lai Sun Development agreed to sell a
residential commercial site in Shamshuipo to Nan Fung for
$88.7 million -- a $153 million loss on book value -- to
raise proceeds to repay debt or for general working
capital.

The Lim family holds about 56 per cent of Lai Sun
Development and Nan Fung holds about 10 per cent.

The Lim family is expected to take up allocation of the
rights issue being launched and Nan Fung Textiles,
controlled by the Lim family's long-term friend Chen Din-
hwa, would also probably take up its portion.


LAI SUN DEVELOPMENT: Writ hits hopes of selling hotel stake
-----------------------------------------------------------
According to the South China Morning Post, Lai Sun Hotels,
a listed arm of debt-ridden Lai Sun Development, and whose
shares were suspended on Friday along with Lai Sun
Development and Lai Sun Garments (International), said
yesterday that a prospective purchaser of the hotel had
"commenced or threatened to commence" legal action in the
Supreme Court of the State of New York against its owners
seeking US$80 million in damages.

Yesterday's statement said the possible buyer was claiming,
among other things, that the owners of the hotel were
obligated to sell their respective interests to that party
although "no purchase agreement was executed or delivered".

Lai Sun Hotels said according to initial legal advice it
and the owners' syndicate had "substantial defences to the
claims raised". It said the price at which the party in
question claims that Lai Sun Hotels's attributable interest
must be sold is significantly above the value of that
interest included in the last audited accounts for the year
ended December 31, 1997, so the directors "do not believe
this claim will have any significant adverse effect on the
company."

Reports have suggested the hotel could be sold for up to
$400 million.

Lai Sun officials have said on various occasions in recent
months that a deal to sell the hotel was imminent. Late
last month, Lai Sun Development director Lam Kin-ming was
quoted as saying negotiations on the sale had been
completed.

Lai Sun Hotels shares resume trade today, while the
position of the other two group firms was unclear last
night in the absence of a statement detailing a Lai Sun
Development rights issue.


MUJIRUSHI RYOBIN HONG KONG: Muji liquidators appointed
------------------------------------------------------
According to the Hong Kong Standard, Simon Blade and
Antonio Chan of Grant Thornton (Hong Kong) were appointed
liquidators of Mujirushi Ryobin Hong Kong yesterday at
meetings of members and creditors. Muji is a clothing and
houseware chain in Hong Kong. Prior to the appointment of
the liquidators, Muji operated from Locations in Ocean
Centre in Tsim Sha Tsui, Goldmark in Causeway Bay, City
Plaza 2 in Tai Koo Shing and Seiyu in Sha Tin. The
liquidators will conduct a sale of Muji's stock from the
Ocean Centre and Goldmark stores starting today up to
December 30 or until all stock is sold.


SING TAO HOLDINGS: Sing Tao's buyer may need partner
----------------------------------------------------
According to the South China Morning Post, Sing Tao
Holdings last night confirmed that Ms Aw had agreed to sell
96.5 million shares, representing a 23 per cent of the
company, to Hong Kong Sunrise Holdings, a wholly-owned
subsidiary of Dublin-based China Enterprise Development
Fund (CEDF), for $1.20 a share. The deal also involves an
option under which Ms Aw, who will remain chairman after
the deal, could sell another 10 per cent of the company
within two years.

It emerged that the buyer may have to bring in other
investors to purchase part of the stake for regulatory
reasons. Irish regulations covering investment funds state
that CEDF cannot make an investment which will result in
more than 20 per cent of its net asset value being tied up
in one company. The deal as it stands would see CEDF invest
35 per cent of its US$40.4 million total assets in Sing
Tao. The fund says it has not yet decided on whether to
pursue a waiver.

A joint statement from Sing Tao and CEDF says that the
investment fund had committed to buy approximately 12.26
per cent and find third-party investors to take up the
remaining 10.74 per cent of Ms Aw's stake. CEDF said it was
in the process of identifying potential third-party
investors. It said targets would be current CEDF
shareholders, private equity investors, pension funds and
asset management companies. Ms Aw will not be involved in
the process.

If CEDF fails to find other investors, Ms Aw has the
contractual right to force the fund to buy a 12.26 per cent
stake in Sing Tao.

Under the option agreement, a new management company is to
be set up to buy up to another 10 per cent of Sing Tao from
Ms Aw within two years at a price of $1.38 a share. The
management company will be owned by CEDF chairman Sunny Yip
Siu-fu and three other local members drawn from finance,
academia and journalism connected to Mr Yip. The
shareholding structure of the management company has yet to
be decided. Ms Aw will not be involved in this new company.

If the management company takes the option, Ms Aw's stake
in Sing Tao will be cut to 17 per cent.

There are 11 investors holding more than 2.5 per cent of
the capital of CEDF including Fidelity Far East Fund, China
Securities, LGT bank and the University of Richmond.

Sing Tao shares were suspended at $1.11 last Monday and
will resume trading today.

It emerged on Saturday that Ms Aw is being sued for at
least $294.2 million in unpaid debts by Hong Kong Tobacco
chief Ho Ying-chie.

The Hong Kong Standard shows a half-page report on the
incident covering largely similar points as above.

It mentions that the price of $1.20 per share sold by Ms Aw
represents a premium of 8.18 per cent over its last closing
price of $1.11.

According to the report, CEDF's major shareholders include,
in addition to those mentioned above, Daewoo Securities,
Korea Long Term Credit Bank and Vulcan Securities. Other
shareholders include: Goodwin Charitable Foundations, China
Securities, Finter Bank Zurich, BIL GT Holding and KEB
(Asia) Finance Ltd.

It says that CEDF is operated by a group of Hong Kong-based
professional managers. The share sale agreement is
conditional upon the completion of due diligence review to
the satisfaction of the purchaser and the agreement is
conditional upon the purchaser not being required to make a
mandatory general offer for the shares. There will be a
period of 30 days for the fulfillment of the share sale
agreement, which means the conditions should be fulfilled
by Jan 26.

CEDF is a closed-end fund listed on the Irish Stock
Exchange in Dublin. Hong Kong Sunrise Holdings Ltd. (SHL)
is incorporated in the British Virgin Islands. The paper
also gives a brief profile of the chairman and directors of
Sunrise Holdings Ltd.

Sunrise Holdings Ltd. said the principal objective of CEDF
was to achieve medium-to-long-term capital appreciation of
assets through a portfolio of investments in different
industrial and securities sectors. It said CEDF intended to
hold its shareholding in Sing Tao as a long-term
investment.


THEME INTERNATIONAL: Theme goes ahead with Fitlady deal
-------------------------------------------------------
The South China Morning Post said that Theme International
Holdings is proceeding with the $90 million sale of a
pantyhose associate's major shareholder, according to
executive director Charing Choi Yat-ling. Theme
shareholders yesterday approved a motion to sell the
company's 40 per cent interest in Fitlady Investment
Holdings and an accompanying shareholder's loan to an
unnamed independent third party. The move was opposed by
Fitlady's substantial shareholder SCM China Growth Fund LDC
which on Monday sought a court injunction in an attempt to
thwart the sale.


TIANJIN INTERNATIONAL: Itic clears its samurai debt on time
-----------------------------------------------------------
According to the Hong Kong Standard, Tianjin International
Trust and Investment Corp met debt repayment obligations on
a 10 billion yen Samurai bond due on Thursday, the
Industrial Bank of Japan said yesterday in Tokyo. The
Industrial Bank of Japan served as the commissioning bank
for the bonds.


=========
J A P A N  
=========

FUJITA CORP: Haseko seeks debt relief
-------------------------------------
In an article about troubled construction firm Haseko, the
Hong Kong Standard said that the Nihon Keizai newspaper
reported last month, without citing sources, that Sakura
Bank and Tokai Bank will forgive a combined 120 billion yen
in loans to mid-sized general contractor Fujita Corp.


HASEKO: Haseko plan calls for huge debt write-off
-------------------------------------------------
According to the South China Morning Post, troubled
Japanese construction firm Haseko has unveiled a rescue
plan which includes asking creditor banks to waive loans
worth more than US$3.4 billion.

Creditor bank Daiwa Bank said it is important for Daiwa to
support Haseko given that it shoulders a large number of
subcontractors. Another creditor bank, Industrial Bank of
Japan, said it is vital for Haseko to restructure itself
and they will give support.

Mitsui Trust and Banking, another key creditor, declined to
comment.

Kyodo News Agency said the three banks would write off 160
billion yen -- 60 billion yen each for Daiwa and Mitsui and
40 billion yen for Industrial Bank of Japan. Under the
restructuring, Haseko is to sell assets and cut its group
workforce from 5,000 to 4,000 by March 2000.

For the year to March 31, Haseko reported a net loss of
192.7 billion yen.

According to the Hong Kong Standard, Haseko has lost money
for the past four years and reported a net loss of 3.9
billion yen for the half-year to September 30. Total
interest bearing debt for the group was 1.123 trillion yen
at the end of March. Haseko said it will ask main creditors
Daiwa Bank, Industrial Bank of Japan and Mitsui Trust &
Banking to write off 42 per cent of the 394.2 billion yen
debt. The rest will come from 35 other banks.

A spokesman for the Industrial Bank of Japan said Haseko's
core business is solid. Mitsui Trust is checking the
appropriateness of the plan.

Senior analyst at ING Baring Securities Japan, Mark Brown,
estimates Haseko's liabilities exceed its assets by 477
billion yen, which includes unrealised losses that the
company is not required to report.

He said Daiwa is Haseko's biggest lender, with 48.3 billion
yen in loans to the parent company as of March, out of a
total 354 billion yen in loans, Mitsui had 35.2 billion and
the Industrial Bank of Japan 30.3 billion.

A financial analyst at Okasan Securities, Satoshi Toyonaga,
said that the banks are accepting the loan forgiveness on
the assumption that doing so would permit Haseko to survive
and the continued existence of Haseko gives the banks a
chance to recover some loans.

Haseko said it will sell 94 per cent of its real estate
assets valued at 866.7 billion yen by March 2014.


NISSAN MOTOR: Could close plants in Japan
-----------------------------------------
The Financial Times reports Nissan, Japan's second largest
automotive manufacturer, yesterday announced plans to cut
domestic capacity by 15 per cent, in a move that could
involve closing plants.

The Times says plant closures are rare in Japan, but the
industry is racked by overcapacity following a 12.3 per
cent drop in domestic vehicle sales this year to the lowest
level since 1986. The Japan Automobile Manufacturers
Association has predicted sales will recover by only 2.5
per cent next year, to 6.05 million vehicles.

Nissan is having particular difficulties because of its
high net debts, poor cash flow and a model range that is
seen as dull.

Kosei Minami, executive vice-president, said the group
would cut domestic capacity by 15 per cent to 1.7m units a
year by 2003. The Nagoya plant of its affiliate Aichi
Maching Industry might be shut, as well as parts of
facilities at Nissan Shatai, which has operations in Kyoto
and Kanagawa prefectures.

The aim is to cut annual production costs by up to Y15bn by
2003. The company would also halt operations at its
Indonesian joint venture from the end of the month.


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

DAEWOO ELECTRONICS: Agreements don't include core details
---------------------------------------------------------
Samsung and Daewoo each signed agreements yesterday which
are generally seen as being meaningless since they do not
include core details of the swap of their automobile and
electronics subsidiaries. The agreements, which cover the
overall operation of Samsung Motors and Daewoo Electronics
after the swap, including the handling of existing workers,
were delivered to the Ministry of Commerce, Industry and
Energy.

Vice MOCIE Minister Choe Hong-geun said in a meeting with
reporters that all basic aspects of the business deal have
been finalized with the exception of what will happen to
the production of the SM5 series of passenger cars.

Analysts said the agreement is a far cry from what is
needed to push the "big deal" forward, a swap that is seen
as the central part of the government-initiated
restructuring of large conglomerates.

Samsung is viewed to have made concessions, if for no other
reason than that it stands to benefit considerably from the
swapping of Daewoo Electronics and Samsung Motors, which
currently produces the SM5 car model. Samsung has said it
will compensate all workers who are not reemployed by
Daewoo and that it will guarantee the independent operation
of Daewoo Electronics after the swap is completed.

On the other hand, industry officials observed, Daewoo is
basically not only unwilling to continue producing SM5
vehicles but is seeking cash compensation for giving up
Daewoo Electronics. Such opinions are based on speculation
that Daewoo is severely cash-strapped and that the
streamlining of its subsidiaries from over 40 to around 10
is designed to keep it afloat, they said.


JINRO COORS: Coors plans to bid at auction
------------------------------------------
The Rocky Mountain News reports Coors Brewing Co. will be a
bidder when a South Korean brewery it once had a  
partnership in goes on the auction block sometime this
spring. Jinro Coors Brewing Co., the third largest brewery
in South Korea, was declared bankrupt in September. Korea
Development Bank, the main creditor, and about 40 other
Korean banks hired Chase Securities Inc. Thursday to
organize an auction to sell the brewery to the highest
bidder.

The Golden (Colo.)-based brewery initially invested $22
million in Jinro seven years ago, giving Coors a 33 percent
ownership. Beer sales, however, have fallen in Korea. Jinro
defaulted last fall on part of its $1.9 billion in debt.

Coors had already pulled up its ownership stake when it
exercised an option last December to leave the partnership
and receive its original investment.

Jinro has yet to repay Coors. The American brewery has had
to get in line behind other creditors.

Coors had attempted to bail out the company with a $100
million acquisition bid in October, but the banks passed on
the offer, saying it would have required them to write off
more than half of Jinro's $470 million of debt and convert
the rest to equity.

Coors and Doonsan Group, which also failed to acquire the
brewery earlier, are the most likely to bid at the auction,
said Kang Dong Hyun, an analyst at KFB Securities. Doonsan
owns Korea's Oriental Brewery Co.


SAMSUNG MOTORS: Agreements don't include core details
-----------------------------------------------------
Samsung and Daewoo each signed agreements yesterday which
are generally seen as being meaningless since they do not
include core details of the swap of their automobile and
electronics subsidiaries. The agreements, which cover the
overall operation of Samsung Motors and Daewoo Electronics
after the swap, including the handling of existing workers,
were delivered to the Ministry of Commerce, Industry and
Energy.

Vice MOCIE Minister Choe Hong-geun said in a meeting with
reporters that all basic aspects of the business deal have
been finalized with the exception of what will happen to
the production of the SM5 series of passenger cars.

Analysts said the agreement is a far cry from what is
needed to push the "big deal" forward, a swap that is seen
as the central part of the government-initiated
restructuring of large conglomerates.

Samsung is viewed to have made concessions, if for no other
reason than that it stands to benefit considerably from the
swapping of Daewoo Electronics and Samsung Motors, which
currently produces the SM5 car model. Samsung has said it
will compensate all workers who are not reemployed by
Daewoo and that it will guarantee the independent operation
of Daewoo Electronics after the swap is completed.

On the other hand, industry officials observed, Daewoo is
basically not only unwilling to continue producing SM5
vehicles but is seeking cash compensation for giving up
Daewoo Electronics. Such opinions are based on speculation
that Daewoo is severely cash-strapped and that the
streamlining of its subsidiaries from over 40 to around 10
is designed to keep it afloat, they said.


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

AMMB HOLDINGS BHD: Results - 30/9/98
------------------------------------
AMMB Holdings Bhd (listed on the KLSE) reported a pre-tax
loss of RM346mil for the 6months ended 30/9/98, compared to
a pre-tax profit of RM303mil previously. The loss was due
to lower operating profits and large loan provisions (of
nearly RM480mil) during the period.


AD LOGISTICS (M) SDN BHD: Voluntary winding-up
----------------------------------------------
The members of Ad Logistics (M) Sdn Bhd on 16/12/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 21/1/99.


AMSTEL SDN BHD: Winding-up petition
-----------------------------------
C.T. Hsu International Inc. on 1/12/98 petitioned for the
winding-up of Amstel Sdn Bhd. The petition is directed to
be heard on 27/1/99.


CAM ADVANCED TECHNOLOGIES (M) SDN BHD: Winding-up petition
----------------------------------------------------------
Daw Technologies Inc on 27/11/98 petitioned for the
winding-up of CAM Advanced Technologies (M) Sdn Bhd.
The petition is directed to be heard on 2/3/99.


DAX FOODS SDN BHD: Winding-up petition
--------------------------------------
Lee Huat Plastic Industries Sdn Bhd on 2/11/98 petitioned
for the winding-up of Dax Foods Sdn Bhd. The petition is
directed to be heard on 13/1/99.


DIVERSIFIED RESOURCES: Results announcement
-------------------------------------------
Singapore Business Times reports Diversified Resources Bhd
(DRB), a member of DRB-Hicom Group, has incurred a group
pre-tax loss of 73 million Malaysian ringgit (S$31.7
million) for the six months to Sept. 30, against a profit
of RM190.61 million in the corresponding period last year.
Announcing the unaudited results on Friday, DRB attributed
the loss to lower sales volumes, thin profit margins and
higher interest costs experienced by all its subsidiaries,
as well as negative contributions from the associated
companies.

The group's sales fell 65 per cent to RM650.8 million from
RM1.86 billion in the 1997 period. At the company level,
the pre-tax loss widened to RM14.38 million from RM8.97
million although sales edged up 5 per cent to RM4.27
million from RM4.08 million previously.

The board did not recommend payment of an interim dividend
for the period under review.


GIN CHEONG INDUSTRIES SDN BHD: Winding-up petition
--------------------------------------------------
OCBC Finance Bhd on 9/12/98 petitioned for the winding-up
of Gin Cheong Industries Sdn Bhd.


HAU WAI ENGINEERING SDN BHD: Winding-up petition
------------------------------------------------
Perniagaan Logam Eng Fei on 28/11/98 petitioned for the
winding-up of Hau Wai Engineering Sdn Bhd. The petition is
directed to be heard on 5/3/99.


JAGUH ANGKUT BERAT SDN BHD: Winding-up petition
-----------------------------------------------
Keng Soon Enterprise Sdn Bhd on 15/6/98 petitioned for the
winding-up of Jaguh Angkut Berat Sdn Bhd. The petition is
directed to be heard on 22/1/99.


KONTREK JAMARAZ SDN BHD: Winding-up petition
--------------------------------------------
Omitech Road Systems (M) Sdn Bhd on 14/11/98 petitioned for
the winding-up of Kontrek Jamaraz Sdn Bhd. The petition is
directed to be heard on 14/4/99.


NUNICOS HOLDINGS SDN BHD: Voluntary winding-up
----------------------------------------------
The members of Nunicos Holdings Sdn Bhd on 14/12/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 17/1/99.


PAN MALAYSIA AERIAL APPLICATORS: Winding-up petition
----------------------------------------------------
Pan Malaysia Aerial Applicators Sdn Bhd on 15/12/98
petitioned for the winding-up of Pan Malaysia Aerial
Applicators Sdn Bhd.


PARADIGM INFO-SYSTEMS (M) SDN BHD: Winding-up petition
------------------------------------------------------
Read Advertising Sdn Bhd on 5/11/98 petitioned for the
winding-up of Paradigm Info-Systems (M) Sdn Bhd. The
petition is directed to be heard on 2/4/99.


PARIT PERAK: In talks to restructure repayment
----------------------------------------------
Business Times reports Parit Perak Holdings Bhd is
currently negotiating with certain banks and bank's
subsidiary to restructure for the repayment terms of the
banking facilities extended to the group. In reply to a
KLSE query on the qualification stated in the Auditors'
Report in its Annual Report 1998, Parit Perak said the
accounts in the annual report do not include adjustments
from the economic uncertainties prevailing in Malaysia and
South-East Asian region.

The group's operations have been significantly affected by
the economic uncertainty resulting in the increase of
credit risk inherent in receivables and realisable values
of other assets. This may affect the company and the
group's ability to pay its debts as they mature.

The company added that the liquidity of the company and the
group is also dependent on the relationship with their
financiers to settlement of debts or debts covenants should
the situation be required.

Parit Perak's provision are based on the current conditions
and information and the assessment of provision levels
should also incorporate the potential for future
deterioration in the asset quality of the company and the
group.


PROVEN DEVELOPMENT SDN BHD: Winding-up petition
-----------------------------------------------
Pembinaan V-Jaya Sdn Bhd on 14/11/98 petitioned for the
winding-up of Proven Development Sdn Bhd. The petition is
directed to be heard on 14/4/99.


SANKO METAL INDUSTRIAL (M) SDN BHD: Voluntary winding-up
--------------------------------------------------------
The members of Sanko Metal Industrial (M) Sdn Bhd on
18/12/98 resolved to wind-up the company voluntarily.
Creditors are requested to submit their claims before
21/1/99.


SIN-MAH AGENCIES SDN BHD: VOLUNTARY WINDING-UP
----------------------------------------------
The members of Sin-Mah Agencies Sdn Bhd on 10/12/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 19/1/99.


WOVENTEX CORP BHD: Results - 31/7/98
------------------------------------
Woventex Corp Bhd (listed on the KLSE) reported a net loss
of RM1.3mil for the year ended 31/7/98, compared to a net
profit of RM5.6mil previously. The loss was due to higher
financial cost and the depreciation of the local currency.
The group expects to show huge improvement in the first
half of 1999 with steps to achieve cost competitiveness and
market repositioning.


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

VITARICH: Creditor banks OK PhP3-B debt restructuring
-----------------------------------------------------
BusinessWorld reports poultry-based food producer Vitarich
Corp. finally signed its three-billion Philippine peso
(PhP) debt restructuring agreement with creditor-banks that
would result in lower interest costs and improved cash
flow.

Vitarich corporate secretary Tadeo Hilado told the stock
exchange the restructuring pact was signed last Tuesday. It
involved Vitarich's omnibus credit line, and leasing and
domestic bills purchase facilities with several creditor
banks and financial institutions.

The company's creditors include Bank of the Philippine
Islands, Philippine National Bank, Philippine Commercial
International Bank (PCIBank), Metropolitan Bank and Trust
Co. (Metrobank), Far East Bank and Trust Co., Land Bank of
the Philippines, Solidbank Corp., Bank of Commerce, Rizal
Commercial Banking Corp., Philippine Banking Corp.,
Standard Chartered Bank and Union Bank of the Philippines.
PCIBank and Metrobank have the largest exposure worth
PhP500 million to PhP600 million.

The PhP3-billion short-term loan was used by the company as
working capital, for expansion projects and as a revolving
fund. A company source told BusinessWorld recently that the
latest proposal submitted by Vitarich to the banks involved
a PhP500-million revolving credit line and PhP1-billion
convertible notes and term loans.


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

ASIA PULP & PAPER: Harnischfeger acts on contract troubles
----------------------------------------------------------
According to the Wisconsin State Journal Harnischfeger
Industries of Milwaukee, the second-largest maker of paper-
processing equipment, said Asia Pulp & Paper Co. defaulted
on two contracts for machines worth $300 million.
Harnischfeger said it's seeking full payment from Asia
Paper of Singapore for the machines, plus $125 million in
damages and delay costs.

Harnischfeger, which held talks with Asia Pulp last month
to extend financing terms for equipment, said it would seek
new customers for the machines. Asia Pulp wanted the
machines for operations in Indonesia.

Slower economic growth throughout Asia forced several pulp
and paper companies to put projects on hold while much of
the region tries to emerge from recession.


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

ALPHATEC: New adviser approved by creditors
-------------------------------------------
The Bangkok Post reports a different division of
PricewaterhouseCoopers will attempt to work out a
restructuring plan for Alphatec Electronics Plc after
creditors rejected one prepared by another unit of the
management consultancy.

Creditors yesterday approved PWC Financial Advisory
Services as the new adviser. It replaces PWC Corporate
Restructuring.

Krung Thai Bank led the fight against the original plan
because of concerns that financial creditors would be at a
disadvantage when proposed new investors took over the
company.

John Perrins, a PricewaterhouseCoopers partner, said the
new advisory team would rely on existing data and consult
with the former advisers in drafting a new plan.
He said an amended plan would be sent to a creditors'
working group next week, with a vote by all creditors
expected by mid-January.


SRITHAI SUPERWARE: Showcase deal with Berli Jucker fails
--------------------------------------------------------
The Bangkok Post reports Srithai Superware Plc's debt
restructuring deal with Berli Jucker Plc -- once billed as
the showcase for similar plans -- has collapsed.
Differences over the shareholding structure were to blame,
Sanan Angubolkul, president of Srithai Superware, said
yesterday.

Last July, Berli Jucker, the trading arm of Hong Kong-based
First Pacific Company, agreed to pay 1.2 billion baht for a
60% stake in Srithai Superware, a manufacturer of melamine
products. Most of the money was to help repay $146 million
in unhedged foreign exchange loans taken out by Srithai
Superware.

However, after extensive discussion, both companies
concluded the deal could not be structured in a manner that
fully met Berli Jucker's stringent investment criteria,
First Pacific said in a statement.

In October, Mr Sanan said he expected Srithai to be "the
showcase for debt restructuring in Thailand", and that he
expected the deal to be settled by March. By having a
strategic partner such as Berli Jucker, Srithai Superware
would be able to reduce its debt burden and secure more
loans because Berli's presence would improve Srithai's
financial credibility, he said two months ago.

Yesterday he said negotiations had ceased. "We are now
negotiating [restructuring] with the creditors ourselves."
On Monday he would meet creditors to discuss the future
direction of the company, he said.

An analyst said the creditors were likely to accept a deal
with the current shareholders. "With the creditors taking
equity in the company there are two advantages. One is the
option for the Lertsumitkool family [the major shareholder]
to buy back shares eventually, and the other is that the
shareholding would be more fragmented so there will be no
single controlling shareholder. This would not have been
possible with Berli Jucker owning 60%.


TPI POLENE: Sets debt deadline for creditors
--------------------------------------------
The Nation reports creditors of TPI Polene Plc were
yesterday asked to decide by Jan 31 if they would accept
its US$1.5 billion debt restructuring plan, according to
creditor sources.

Led by its chief executive officer Prachai Leophairatana,
TPIPL which had stopped repaying its debts since August
last year, presented the restructuring plan to about 50
creditors at a meeting held at the TPI headquarters in
Bangkok. According to the TPIPL debt restructuring model,
the principal repayment term would be extended to 10 years
starting from the year 2000. For unpaid interest, the
creditors would be given the right to swap the debts for
equity in TPIPL resulting in a combined equity
participation of 20 per cent.

With regard to the asset sale plan, TPIPL said it had
another investor vying to buy its cement factories in
addition to Cement of Mexico. Claiming a low buying price
proposed by Cement of Mexico, TPIPL had earlier refused to
sell to the Mexican company. However, TPIPL executives said
yesterday that the company is open  to renegotiations with
Cement of Mexico if a higher price is proposed.

Creditors of TPIPL's parent firm Thai Petrochemical
Industry Plc (TPI) postponed a vote on the TPI debt
restructuring plan scheduled for yesterday as some
important creditors like International Finance Corp thought
the plan favoured the debtor.


TELECOMASIA: Seeking escape from cordless telephone project
-----------------------------------------------------------
The Nation reports Telecomasia Corp Plc (TA) and the
Telephone Organisation of Thailand (TOT) will hold a formal
meeting to solve chronic problems in the Personal Cordless
Telephone (PCT) low-cost mobile phone project. In the year
that the network has been operational, TA has not been able
to charge users, because once the users are billed, TA is
supposed to start paying NEC Corporation, the project's
installer and supplier, according to their agreement.

TA has made several attempts to resolve the problems with
NEC. Among the proposals was a swapping of debt for equity,
but NEC rejected the idea. TOT sources said NEC had already
stopped laying down PCT facilities.

TA senior executives said TA would continue negotiating
with NEC to extend the debt repayment to begin in the next
five years. The present contract stipulates that TA starts
paying interest two and a half years after the service is
officially launched.

Analysts have advised TA to shut down the PCT service, in
which debts have exploded without any sign of a way out.

Fighting hard to survive financially, TA recently claimed
that it had reached a significant level in negotiations
with half its 40 creditors by having them sign a "stand-
still agreement" in November.

The agreement was said to have helped TA ease the way in
talks with its creditors to extend the roll-over of its
loan repayment. The fixed-line company, advised by
PricewaterhouseCoopers, expects to settle the roll-over
agreement by the first quarter next year.


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,
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Copyright 1998.  All rights reserved.  ISSN: 1520-9482.  

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