/raid1/www/Hosts/bankrupt/TCRAP_Public/981224.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Thursday, December 24, 1998, Vol. 1, No. 214

                    Headlines


* C H I N A   &   H O N G   K O N G *

AWT HOLDINGS: Responds to articles concerning Hinton
CHINA UNITED: Results announcement
FOURSEAS TRAVEL: Results announcement
HWA KAY THAI: Applies to delay circular
INTERFORM CERAMICS: Loss puts Interform bailout in jeopardy

LAI SUN DEVELOPMENT: Market lops shares after cash calls
MEI AH ENTERTAINMENT: Results announcement
SOUTH SEA DEVELOPMENT: Losses widen for South Sea
TAK WING INVESTMENT: Receives writ and demand letter


* J A P A N *

COSEL COMPANY: Results announcement
FUJI HEAVY: Chairman resigns amid bribery charge
ISETAN: Barney's deal ends loss run at Isetan
KOKUSAI ELECTRIC: Results announcement
LONG TERM CREDIT: Private broker eyed for LTCB sale

MAZDA: Long-term debt under review by Moody's
NIKON CORP: Results announcement
TOKYO ELECTRON: Results announcement


* K O R E A *

DAEWOO ELECTRONICS: Deloitte Touche may evaluate swap deal
DOOSAN: Ditching company cars for rentals
HANBO IRON & STEEL: Praise from US on controversy
KIA MOTORS: Additional W4 tril. debt uncovered at Kia
LG ELECTRONICS: Successful 1999 wage negotiations

ROCKET ELECTRIC: Gillette takes over Rocket Electric
SAMSUNG ELECTRONICS: Sells US office
SAMSUNG MOTORS: Deloitte Touche may evaluate swap deal


* M A L A Y S I A *

DAIHATSU (MALAYSIA) SDN BHD: Winding-up petition
FORTRESS HECTARES SDN BHD: Voluntary winding-up
GADEK (M) BHD: Results - 30/9/98
KONSORTIUM: To slash share premium account by RM410m
SELANGOR DREDGING BHD: Results - 30/9/98

TIME TELEKOM: Chief to join Philippines' Smart Comm
USAHA CERAKIN SDN BHD: Winding-up petition
WASTE DISPOSAL (PENANG) SDN BHD: Voluntary winding-up
WASTE DISPOSAL (PERLIS) SDN BHD: Voluntary winding-up


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

PHILIPPINE AIRLINES: Creditors reject PAL rescue plan
PHILIPPINE LONG DISTANCE: Renews SBC talks in funding drive


* S I N G A P O R E *

ARMSTRONG INDUSTRIAL: Sees $3m operating loss
DBS LAND: Pidemco denies talk it's buying into DBS Land
VICKERS BALLAS & CO: Unit unaware it breached SET rules


* T H A I L A N D *

NATION MULTIMEDIA: Raises capital to cut expenses
SHINAWATRA GROUP: Sacks 108 employees
SIAM CEMENT: Toyota to take control of four SCC metal units


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

AWT HOLDINGS: Responds to articles concerning Hinton
----------------------------------------------------
AWT Holdings Company Limited has responded to press
articles concerning Hinton Holdings Inc., which has issued
a writ of summons against Mr Leung Tze Hang, David, the
Chairman and director of the Company for breach of an
alleged charge agreement dated 7th November 1998 and
requested for compensation for such breach.

The company informed the Stock Exchange of Hong Kong that      
Hinton applied for an ex-parte injunction against Mr Leung,
the other directors of the Company and the Company as the
Defendants from disposing the factory at Units G & H on the
Ground Floor, East Sun Industrial Centre, 16-20 Shing Yip
Street, Kwun Tong, Kowloon on 12th November 1998.
     
So far as the AWT board is aware, Mr Leung has informed the
Board that he has not entered into the said charge
agreement with Hinton and/or Mr Yeung Wing Keung, Wilson,
the director and controlling shareholder of Hinton, as
alleged by Hinton. The First Court Injunction was
discharged on 20th November 1998 on the grounds that there
were no merits in the application with costs for discharge
and costs incidental to the First Court Injunction to be
paid by Hinton to the Defendants. The Second Court
Injunction was in fact issued against Mr Leung only and was
dismissed on 18th December 1998.
     
Mr Leung will continue as Chairman and director of the
Board.


CHINA UNITED: Results announcement
----------------------------------
China United Holdings Limited announced half-year results
for the period ending September 30, 1998 as a net loss of
HK$61 million on turnover of HK$217 million. This compares
with a profit of HK$18 million on turnover of HK$165
million for the corresponding 1997 period.


FOURSEAS TRAVEL: Results announcement
-------------------------------------
Four Seas Travel International Limited announced a net loss
of HK$6.37 million on turnover of HK$552 million. This
compares with a profit of HK$14.49 million on turnover of
HK$687 million for the corresponding 1997 period.


HWA KAY THAI: Applies to delay circular
---------------------------------------
In the joint announcement made by Hwa Kay Thai Holdings
Limited and Shine United International Inc. on 1st
December, 1998, it was stated that a circular containing
details of the Subscription, the Capital Restructuring, the
Debt Restructuring, the Whitewash Waiver, a letter from the
independent board committee, a letter from the independent
financial adviser to the independent board committee and
the notice of a special general meeting would be despatched
to Shareholders of Hwa Kay Thai. The Announcement also
stated that the despatch of the Circular was expected to be
postponed until the Compromise Agreement has been entered
into with the creditors concerned. Unless otherwise
defined, capitalized terms used herein have the same
meaning as those used in the Announcement.
     
As at the date of this announcement, the Compromise
Agreement has not been entered into by the parties
concerned. As the timetable regarding the execution of the
Compromise Agreement has not yet been determined, the
proposed Debt Restructuring has not been finalised.

Accordingly, the Circular cannot be despatched on or before
22nd December, 1998, the latest date when the Circular is
required to be despatched under the Code and the Listing
Rules. Hwa Kay Thai and Shine United have applied to the
SFC and the Stock Exchange to extend the date of despatch
of the Circular to a date as soon as the Compromise
Agreement is executed such that the despatch of the
Circular is expected to be on or before 15th January,
1999.
     
Hwa Kay Thai and Shine United expect to despatch the
Circular to the Shareholders of Hwa Kay Thai as soon as the
Compromise Agreement is executed such that the despatch of
the Circular is expected to be on or before 15th January,
1999. The completion of the Restructuring Proposal is
subject to fulfilment of various conditions of the
Investment Agreement that must be fulfilled on or before
28th February 1999.
     
If the Company is unable to restructure its indebtedness
and enter into the Compromise Agreement or to complete the
Investment Agreement, the Company will have a negative net
asset value and will be insolvent and may go into
liquidation. Shareholders, Warrantholders and investors
should exercise extreme caution when dealings in the
Company's securities.


INTERFORM CERAMICS: Loss puts Interform bailout in jeopardy
-----------------------------------------------------------
According to the South China Morning Post, sources said
that a $1.7 billion rescue bid for ailing Interform
Ceramics Technologies is in doubt after the company
posted a disastrous interim loss. The would-be rescuer,
privately-owned ceramic tile-maker China Wealth Group, was
believed to have missed Monday's deadline for signing a
definitive agreement.

Interform justified its decision to make the provisions,
saying it had adopted a conservative accounting policy amid
extreme financial constraints. Its chairman and substantial
shareholder Matthew Ngan Man-po was said to be seeking a
reconciliation with China Wealth.

Sources said China Wealth launched a $1.7 billion share-
and-asset rescue package for Interform after performing due
diligence on Interform. It was unaware of any significant
provisions or write-offs for any Interform investments
during the process of due diligence although it realised
Interform owed $807 million to 39 bank creditors.


LAI SUN DEVELOPMENT: Market lops shares after cash calls
--------------------------------------------------------
According to the South China Morning Post, Lai Sun
Development (LSD) shares yesterday slumped 32.2 per cent
and Lai Sun Garment (International) tumbled 41.9 per cent
after the announcement of cash calls at substantial
discounts. Trading in both was suspended on Friday and
Monday.

LSD proposed a one-for-one rights issue at 50 cents per
share to raise between $884 million and $998 million before
expenses. This represents a 90.1 per cent discount to the
adjusted net tangible asset value of $5.07 per share and a
40.5 per cent discount to the theoretical ex-rights price
of 84 cents. Funds raised will be used to reduce loans due
for repayment early next year.

Lai Sun Garment announced a $575 million four-for-one
rights issue at 50 cents per share, together with a $39
million new share placement at $1.25 per share to Far East
Consortium International and Yoshiya International. The
company intends to use $396 million of its funds raised to
subscribe for its entitlements under the LSD issue. The
balance of about $168 million will be used to repay debt.

Following the placement and rights issues, the direct
interest of the Lim family in LSD is expected to drop to
5.93 per cent, while that of Nan Fung Textiles will rise
from 18.18 per cent to 24.12 per cent.

Lai Sun Garment will maintain its 44.76 stake in LSD.


MEI AH ENTERTAINMENT: Results announcement
------------------------------------------
Mei Ah Entertainment Group Limited announced a net loss of
HK$29.874 million on turnover of HK$69.318 million for the
half-year ending September 30, 1998. This compares with a
profit of HK$3.474 on turnover of HK$113 million for the
corresponding 1997 period.

In March 1998, in view of the persisting economic
recession, the flood of pirated VCDs and further hit by the
weakening of general consumption of the general public in
Hong Kong and the increasing unemployment rate, the
directors have decided to terminate the Group's video
products renting and retailing business in Hong Kong. The
effective date of discontinuance was 24th June 1998, upon
the closure of the last video renting outlet.
     
An exceptional item represents the specific provision made
for an account receivable on close down of video rental
chain stores in Hong Kong in November 1998.
     

SOUTH SEA DEVELOPMENT: Losses widen for South Sea
-------------------------------------------------
According to the South China Morning Post, South Sea
Development's attributable losses widened 60 per cent to
$67.19 million for the half-year to September 30. Turnover
fell to $69.12 million from $525.27 million.


TAK WING INVESTMENT: Receives writ and demand letter
----------------------------------------------------
Tak Wing Investment (Holdings) informed the Stock Exchange
of Hong Kong has received on 17th December, 1998 a writ in
respect of a claim from Banque Nationale de Paris for an
amount of approximately HK$12.7 million in respect of a
surety bond issued by such bank at the request of Wan Hin
and Company Limited (the Company's former subsidiary, now
in receivership and liquidation). On 18th December, 1998,
one of the bankers of the Group demanded repayment of loans
borrowed by the Group of approximately HK$82 million.

In so far as the writ is concerned, the Company has taken
legal advice and filed a notice of its intention to defend.
With respect to the demand letter, the Company is trying to
contact the bank concerned with the view of seeking a
preliminary standstill arrangement. The Company is also
trying to arrange a more formal standstill agreement with
its other bank creditors so that a number of restructuring
proposals can be pursued and considered. If no standstill
agreement can be reached, the financial position of the
Company will be adversely affected.


=========
J A P A N  
=========

COSEL COMPANY: Results announcement
-----------------------------------
Bloomberg reports shares of Cosel Co. rose 5 yen to 835.
The switching-regulator maker reported a fall of 5.6
percent in its parent net profit to 793 million yen for the
half year ended Nov. 30. That's 13.3 percent more than the
most recent forecast by Toyo Keizai Inc., a financial
information company. Cosel said that it will pay an interim
dividend of 7.25 yen per share on Feb. 20, 1999, to holders
of record on Nov. 20. The stock has traded ex-dividend
since Nov. 17.


FUJI HEAVY: Chairman resigns amid bribery charge
------------------------------------------------
Bloomberg reports shares of Fuji Heavy Industries Ltd. fell
24 yen to 566. Chairman Isamu Kawai submitted his
resignation three weeks after being arrested on a bribery
charge, the company said.


ISETAN: Barney's deal ends loss run at Isetan
---------------------------------------------
According to the South China Morning Post, Barney's, the
fashion retail chain, yesterday received US court approval
for a reorganization plan, ending nearly three years of
bankruptcy proceedings.

Isetan, which has a US$600 million investment in Barney's
three biggest stores, has lost $448 million on its
investment since Barney's filed for bankruptcy protection
in 1996.

Barney's sought Chapter 11 bankruptcy protection from
creditors after a dispute with Isetan, Japan's second-most
profitable department store.

The reorganization plan came after it failed to get a
buyer. In May, Dickson Concepts International's $322
million bid was rejected and DFS Group of San Francisco
bowed out in February.

The plan resolves the dispute by awarding the three stores
in New York, Chicago and Beverly Hills to Isetan. Isetan
said it would receive $46 million in cash and bonds, a 7.3
per cent stake in Barney's and 2.5 per cent of warrant
bonds, and the remaining 20 per cent of Barney's Japan.

The Hong Kong Standard reported on the court approval of
the reorganization plan. It said US$68.8 million of new
capital will be injected into the business and the family
business will be handed to creditors.


KOKUSAI ELECTRIC: Results announcement
--------------------------------------
Nikkei reports Kokusai Electric Co. will see a 3.5 billion
yen net loss, against a 300 million yen profit the previous
term, despite a 1 billion yen cut in personnel costs. Group
sales are forecast to drop 26% to 124 billion yen.


LONG TERM CREDIT: Private broker eyed for LTCB sale
---------------------------------------------------
Kyodo News reports The Financial Reconstruction Commission
decided Tuesday to invite publicly private institutions to
serve as a broker for the sale of the operations of the
nationalized Long-Term Credit Bank of Japan (LTCB) to
another financial institution after its bad loans are
cleaned up, commission officials said.

The commission made the decision at an extraordinary
meeting of its five members so as to help smooth the sale
and ensure its transparency, the officials said.

A successful broker will have domestic networks and a
strong knowledge of the financial markets in and outside
Japan and the commission will choose such a broker in view
of its expertise in mergers and acquisitions, they said.

Applicants are asked to send presentation documents to LTCB
by post by Monday and telephone inquiries can be made to
LTCB at 03-5511-7842. The commission plans to select a
successful applicant by the second week of January, they
said.

LTCB has been state-controlled since Oct. 23 under the
financial reconstruction law, which lets the government
nationalize failed or financially troubled banks to help
them meet obligations to creditors.

LTCB continues to service loans in good standing. It will
sell its bad loans to a Japanese version of the U.S.
Resolution and Trust Corp. to be created by merging the
Resolution and Collection Bank and Housing Loan
Administration Corp.

The commission was set up last week to take charge of
crisis management in the financial industry, including
temporary nationalization of troubled banks.


MAZDA: Long-term debt under review by Moody's
---------------------------------------------
The Financial Times reports credit-rating agency Moody's
Investor Service launched a review of the long-term debt
issued by Mazda, the Japanese carmaker owned 33.4 per cent
by Ford, the US car and truck group.

The move, which could result in a downgrade of the group's  
debt to non-investment status, reflects growing concern
that the prolonged economic slump in Japan and Asia is
taking a heavy toll on the country's car industry. The
carmaker's long-term bonds are currently rated Baa3, just
above speculative status.

A downgrade of the debt would make it even more difficult
for the group to acquire funds. Other leading carmakers,
notable Nissan Motor, have been forced to seek new credit
lines and alternative funding sources as a results of the
collapse in new-car sales and the credit crunch at Japanese
banks.

Analysts said that although Mazda had made remarkable
efforts to restructure its operations and had outperformed
its rivals in the first half of this year, the group was
still facing considerable problems in its model line-up,
dealership network, and balance sheet.

The carmaker achieved record earnings in the six months to
September, and said last month it expected to return to the
black in the year to next March. However, Mazda has posted
net losses for the past five years and had a net debt-to-
equity ratio of 172 per cent at the end of last year,
according to HSBC Securities. Debts from the group's
consumer finance unit and dealerships are also believed to
be significant.


NIKON CORP: Results announcement
--------------------------------
Nikkei reports Nikon Corp. is likely to see its group net
balance 12 billion yen in the red, due mainly to increased
production costs for eximer-steppers and growing outlays to
procure parts. Consolidated sales are forecast to decline
only 9% to 340 billion yen, because high-price eximer-
steppers now make up a growing share of the firm's total
stepper sales and Nikon is also seeing firm sales of
digital cameras.


TOKYO ELECTRON: Results announcement
------------------------------------
Nikkei reports Tokyo Electron Ltd. is expected to suffer a
4 billion yen net loss despite intensified cost-cutting
efforts. The firm had a net profit of 30 billion yen a year
earlier. Consolidated sales are projected to fall 32% to
311 billion yen, reflecting Tokyo Electron's heavy
dependence on chipmaking hardware.


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

DAEWOO ELECTRONICS: Deloitte Touche may evaluate swap deal
----------------------------------------------------------
Samsung Motors Inc. and Daewoo Electronics Co.
provisionally appointed Deloitte Touche Tohmatsu
International to evaluate their corporate value prior to
their business swap. The Korea Herald reports Samsung and
Daewoo said they can shift consulting partners to Arthur
Andersen if they are unsatisfied with contract conditions
with Deloitte Touche. The two agreed to base their
evaluation on discounted cash flow analysis (DCF), a
methodology that recognizes the time value of money by
converting future cash flows into a present single value.

Deloitte Touche, or possibly Arthur Andersen, will evaluate
all assets and debts of the two companies, including Daewoo
Electronics' 34 overseas affiliates, in order to produce
corporate assessment based on the DCF analysis. This means
the two companies will retain existing operations even
after business exchange. Whether Daewoo Motor will continue
to manufacture Samsung's SM sedan series that overlap with
Daewoo's Leganza models after the exchange will be dealt
with as a separate matter. The accounting firm signs
contracts with both companies and presents the first report
within four weeks.


DOOSAN: Ditching company cars for rentals
-----------------------------------------
Doosan, known for its drastic restructuring programs, said
yesterday that it was getting rid of all company cars,
including that of the chairman, and replacing them with
rent-a-cars. The Korea Times reports the measure is
expected not only to help reduce 800 million won in annual
expenses, but also to make it easier to maintain the
vehicles. A contract was signed with rent-a-car specialist,
VIP. In addition, chauffeurs will only be provided to
president-level executives and above. Other senior
executives will be able to ask for drivers on a need-only
basis.


HANBO IRON & STEEL: Praise from US on controversy
-------------------------------------------------
The United States has praised the Korean government for
having undertaken appropriate measures in dealing with the
controversial issue involving Hanbo Iron and Steel,
according to the Korea Times.

"The Korean government's undertakings constitute the most
timely, direct and commercially meaningful means of
addressing the U.S. industry's concern over Hanbo at this
time," stated the United States Trade Representative's
(USTR) office.

The report drew a special attention amid raising concern,
especially among the U.S. steel industry, over the possible
extension of subsidies by the Korean government to
revitalize the bankrupt steel company.

The United States has pursued an intensive dialogue with
Korea aimed at ensuring that the Korean steel sector
operates on a market-driven basis, according to the report
acquired by the Korea International Trade Association
(KITA).

USTR Charlene Barshefsky and Secretary of Commerce William
Daley have engaged the Korean government in substantive and
detailed consultations regarding Hanbo Iron and Steel.

"Through these consultations, we have obtained written
assurances from the Korean government that it will not
support or direct others to support Hanbo," it said. Hanbo
has now temporarily shut down production of hot-rolled
sheet.

We have expanded the steel dialogue to encompass broader
concerns about Korean steel -- in particular, two other
Korean steel producers: Pohang Iron and Steel Company
(POSCO), the world's second largest steel producer; and
Dongkuk, a large producer of cut plat exports to the United
States," it said.

With respect to POSCO, the Korean government has indicated
that it is selling its share of POSCO.


KIA MOTORS: Additional W4 tril. debt uncovered at Kia
-----------------------------------------------------
According to the Digital ChosunIlbo, the Securities
Supervisory Board (SSB) announced Wednesday that in a
special audit of Kia and Asia Motors, it had uncovered an
additional W4.5738 trillion in debt missing from their
books. The SSB said that the feat had been accomplished
through the setting up of several paper companies over the
past seven years. Chungwoon and Sandon, two major local
accounting firms, had already examined the books of the two
bankrupt automakers and failed to uncover the debt. The SSB
said that the two firms would receive stiff penalties, with
two CPAs already reprimanded and suspended from their
posts.

According to the SSB audit, Kia Motors incurred a net loss
of W3.3977 trillion in 1997, but managed to minimize the
figure to a loss of W382.9 billion, hiding W3 trillion in
debts. Similarly, in 1997, Asia Motors posted a net loss of
W400 billion, when in fact, a deficit of W2 trillion should
have shown up in company books.


LG ELECTRONICS: Successful 1999 wage negotiations
-------------------------------------------------
According to Digital ChosunIlbo, LG Electronics announced
Wednesday that wage negotiations for next year have been
successfully completed with labor and management agreeing
on a wage freeze and a cut in extra benefits. The two sides
issued a joint statement that they would do their best to
cooperate in dealing with the economic crisis. LG
Electronics is the first major firm to have completed its
1999 wage negotiations.


ROCKET ELECTRIC: Gillette takes over Rocket Electric
----------------------------------------------------
The Korea's Fair Trade Commission (FTC) has given a go-
ahead on Wednesday for US Gillette's absorption of the
Rocket Electric company, a Korean battery maker. According
to the Digital ChosunIlbo, the FTC said when Gillette takes
over Rocket Electric, its market share will shoot up to
58.9%, which may result in limited competition in the
market. The FTC decided to approve the merger anyway, in
order to attract more foreign investment to Korea.

However, to offset the possibilities of a monopoly, the
FTC's approval was contingent on one condition: over the
next five years, Gillette will maintain the retail price of
Duracell batteries to a price 55% below the price in the
US. This is the first decision of the FTC to allow a merger
which might encourage a monopolistic situation to save a
dying local company.


SAMSUNG ELECTRONICS: Sells US office
------------------------------------
The Digital ChosunIlbo says Samsung Electronics announced
Wednesday that it has sold off its US head office to the
American real estate dealership Worthford for US$18
million. The company said that this year alone it has
raised US$100 million by the sale of overseas office
buildings, including its European headquarters in London
for US$24 million.


SAMSUNG MOTORS: Deloitte Touche may evaluate swap deal
------------------------------------------------------
Samsung Motors Inc. and Daewoo Electronics Co.
provisionally appointed Deloitte Touche Tohmatsu
International to evaluate their corporate value prior to
their business swap. The Korea Herald reports Samsung and
Daewoo said they can shift consulting partners to Arthur
Andersen if they are unsatisfied with contract conditions
with Deloitte Touche. The two agreed to base their
evaluation on discounted cash flow analysis (DCF), a
methodology that recognizes the time value of money by
converting future cash flows into a present single value.

Deloitte Touche, or possibly Arthur Andersen, will evaluate
all assets and debts of the two companies, including Daewoo
Electronics' 34 overseas affiliates, in order to produce
corporate assessment based on the DCF analysis. This means
the two companies will retain existing operations even
after business exchange. Whether Daewoo Motor will continue
to manufacture Samsung's SM sedan series that overlap with
Daewoo's Leganza models after the exchange will be dealt
with as a separate matter. The accounting firm signs
contracts with both companies and presents the first report
within four weeks.


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

DAIHATSU (MALAYSIA) SDN BHD: Winding-up petition
------------------------------------------------
Teo Hang Sam Realty Sdn Bhd on 8/10/98 petitioned for the
winding-up of Daihatsu (Malaysia) Sdn Bhd. The petition is
directed to be heard on 24/2/99.


FORTRESS HECTARES SDN BHD: Voluntary winding-up
-----------------------------------------------
The members of Fortress Hectares Sdn Bhd on 18/12/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 18/1/99.


GADEK (M) BHD: Results - 30/9/98
--------------------------------
Gadek (M) Bhd (listed on the KLSE) reported a post-tax loss
of RM87.566mil for the 6months ended 30/9/98, compared to a
post-tax profit of RM172.135mil previously. EPS fell 146%
from RM1.66 to a loss per share of RM0.77


KONSORTIUM: To slash share premium account by RM410m
----------------------------------------------------
According to Singapore Business Times, Konsortium
Perkapalan Berhad, the listed vehicle of Mirzan Mahathir --
the eldest son of Malaysian Prime Minister Mahathir Mohamad
-- will reduce its shareholders' equity substantially in
writing off losses from the controversial sale of its
shipping business and assets to Malaysia International
Shipping Corporation (MISC).

Konsortium said in a statement to the stock exchange last
night that it had obtained a court sanction on Dec 15 to
reduce its share premium account by 410 million Malaysian
ringgit (S$178.3 million) to RM64.137 million for that
purpose.

Konsortium also said it has completed the sale of its 50
per cent equity stake in Juta Integrasi, which provides
shipping services, for RM19.75 million, to listed Kedah
Cement.

MISC, a subsidiary of national oil corporation Petroliam
Nasional Bhd which comes under the office of Dr Mahathir,
in May this year bought the shipping assets of cash-
strapped Konsortium for US$220 million (S$363.6 million)
and absorbed its debt of US$311 million.

Independent adviser Chase Manhattan Bank had valued
Konsortium's entire shipping fleet at between US$224
million and US$313 million, excluding the debt.

Konsortium, which is 50.62 per cent held by Mr Mirzan,
suffered losses of over RM300 million from the sale.

Without its shipping business, which was its biggest income
generator, Konsortium has been reduced to a land-based
logistics company with activities in haulage, freight
forwarding, warehousing and insurance.

Foes of Dr Mahathir have accused the premier of nepotism
although he had opted out of the approval process for the
transaction. His former deputy Anwar Ibrahim, who was fired
in September, has repeatedly blasted the government for
alleged widespread practices of corruption, cronyism and
nepotism.

Mr Anwar, charged with five counts of corruption and five
charges of sodomy, claimed his downfall was partly due to
his objection to the Konsortium deal.

Konsortium shares shed 15 sen to RM2.12 yesterday, a long
way from its peak of over RM16 in 1996.


SELANGOR DREDGING BHD: Results - 30/9/98
----------------------------------------
Selangor Dredging Bhd reported a post-tax loss of RM7.45mil
for the 6months ended 30/9/98, compared to a post-tax
profit of RM1.914mil previously. EPS fell 290% from 0.95sen
to a loss per share of 1.8sen.


TIME TELEKOM: Chief to join Philippines' Smart Comm
---------------------------------------------------
Singapore Business Times reports Don Rae, chief operating
officer of Time Telekom Sdn, the telecommunications unit of
Malaysia's Time Engineering Bhd, will leave the company to
join Smart Communications Inc. Smart, the Philippines'
largest mobile phone company, is the cellular unit of
Hongkong-based First Pacific Co.

Mr Rae, who has been with Time Telekom for two years, will
quit the company by the end of the year and take up a "key
position" in Smart next month, he told Bloomberg News.

Mr Rae's departure comes as Time Engineering struggles to
repay debt amid Malaysia's first recession in 13 years. In
July, Time won court protection from its creditors as
losses mounted. Its loss for the nine months ended Sep 30
widened to 368.6 million Malysian ringgit (S$153 million),
or 49.4 sen a share.

An executive at Time Engineering said more management
changes are expected. On Monday, the company said it
appointed David Frederick Wilson as its executive chairman
with effect from Dec 15.


USAHA CERAKIN SDN BHD: Winding-up petition
------------------------------------------
Transfield Projects (M) Sdn Bhd on 23/11/98 petitioned for
the winding-up of Usaha Cerakin Sdn Bhd. The petition is
directed to be heard on 12/3/99.


WASTE DISPOSAL (PENANG) SDN BHD: Voluntary winding-up
-----------------------------------------------------
The members of Waste Disposal (Penang) Sdn Bhd on 18/12/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 25/1/99.


WASTE DISPOSAL (PERLIS) SDN BHD: Voluntary winding-up
-----------------------------------------------------
The members of Waste Disposal (Perlis) Sdn Bhd on 18/12/98
resolved to wind-up the company voluntarily. Creditors are
requested to submit their claims before 25/1/99.


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

PHILIPPINE AIRLINES: Creditors reject PAL rescue plan
-----------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, European creditors have rejected a proposed
rehabilitation plan for troubled Philippine Airlines (PAL).
Rejection of the plan by the European Export Credit
Agencies was filed with the Securities and Exchange
Commission in Manila yesterday.

Rejection was made on the grounds it did not address the
presence of a strategic partner and infusion of US$200
million in new equity, although these elements had been
presented to and discussed with PAL.

The creditors control leases on 12 Airbus jets, more than
half of the 22 aircraft PAL would need under its survival
plan.

French bank Credit Agricole Indosuez acts as the security
trustee and assignee of lessors' rights in the aircraft in
question.

According to the Hong Kong Standard, the collapse of
negotiations prompted PAL to slash the capital infusion it
was seeking to US$150 million, instead of the US$200
million originally sought.


PHILIPPINE LONG DISTANCE: Renews SBC talks in funding drive
-----------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Philippine Long Distance Telephone (PLDT) is
stepping up its search for new investors to help it reduce
its debt burden. It said it would meet SBC Communications
-- the foreign investment arm of Southwest Bell -- next
month to discuss the possibility of renewing negotiations
for the US-based firm to take a minority investment in
PLDT.

According to the South China Morning Post, SBC
Communications was an original suitor of PLDT
before it lost out to First Pacific which paid US$750
million for a 17.2 per cent stake last month and controls
PLDT.

A First Pacific official in Hong Kong said further talks
with Nippon telephone & Telegraph (NTT) were scheduled to
take place this week. NTT had previously signed a
memorandum to raise its stake in Smart Communications --
First Pacific's Philippine cellular subsidiary, which
is scheduled to be folded into PLDT next year -- from 15
per cent to 40 per cent. It is believed First Pacific would
like the Japanese firm to take a direct stake in PLDT.

According to the Hong Kong Standard, SBC Communications is
possibly in partnership with American International Group.
First Pacific, a Hong Kong investment arm of Indonesia's
Salim Group, paid US$750 million for a controlling stake of
17.2 per cent in PLDT.


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

ARMSTRONG INDUSTRIAL: Sees $3m operating loss
---------------------------------------------
Singapore Business Times reports rubber parts maker
Armstrong Industrial says it sees a $3 million operating
loss in the second half ending Dec 31, and hopes to raise
$8.5 million through a rights issue.

The company has sold its old factory at Gul Lane to BG
Casting Pte Ltd for $3.25 million, above the net book value
of $3 million. Proceeds will be used to reduce borrowings.

Armstrong plans to offer five rights shares at 10 cents
each and two free five-year warrants for every 10 shares
held. Overseas Union Bank is the manager and underwriter.
Of the proceeds, $5.1 million will be used to repay bank
borrowings, $2 million to invest in a subsidiary and a
joint venture, and the rest for working capital.

In September, Armstrong, which serves the disk drive sector
among others, said it expected to break even this year. In
the first half, it made a $72,000 loss.

The group now expects a $700,000 foreign exchange loss in
the second half, and a $2 million gross loss as a projected
fourth-quarter seasonal pick-up did not happen.

It is making a $1.1 million provision for trade receivables
and stocks due to an "established international customer"
running into financial problems. Delays in qualifying two
new products will result in a $600,000 loss.


DBS LAND: Pidemco denies talk it's buying into DBS Land
-------------------------------------------------------
According to Singapore Business Times, government-linked
property group Pidemco Land is not acquiring DBS Bank's
stake in DBS Land.

The rumours, circulating for a few days, claimed Pidemco
was taking over DBS' 28.4 per cent stake -- worth just
under $700 million. "This is the first time we've heard
about this rumour," said a Pidemco spokesman yesterday.
"There are no takeover plans."

DBS Land said it was unaware of any such developments,
while DBS Bank said the rumour was "not true".

Yesterday, DBS Land shares rose 13 cents to $2.46 on 15.3
million shares traded.


VICKERS BALLAS & CO: Unit unaware it breached SET rules
-------------------------------------------------------
Singapore Business Times reports Vickers Ballas Holdings
yesterday said its operating unit was
unaware that certain payments received from a Thai broking
house were in breach of Thai regulations.

"VBCo (Vickers Ballas & Co) had at the time understood that
this (the payments) was an acceptable and customary
practice," the company said in response to yesterday's
reports that VBCo had been banned from trading Thai stocks
for one year from Jan 1, 1999.

It explained that the payments from Union Securities
Company Ltd (USC) were reimbursements for
research/information costs incurred in promoting the
trading of Thai securities to VBCo's clients in late 1997
and early this year.

It added that VBCo immediately stopped billing USC for
reimbursements after the Stock Exchange of Thailand (SET)
issued a letter dated March 10 to Thai and foreign
stockbrokers, saying that any receipt of any kind would
constitute a kind of rebate that was against the rules.

Even so, on Dec 15, the SET instructed Thai broking firms
not to accept trading orders from VBCo after the latter was
found to have breached its rules on trading commissions --
the payments made by USC were deemed to be commission
discounts.

On Monday, a SET official confirmed a report that a ban has
been imposed -- one year from Jan 1.

Vickers Ballas yesterday said: "The SET ruling will not
materially affect the trading of Thai securities by VBCo's
clients who can now trade through other affiliates or
directly through Nava Vickers Ballas Securities Company
(NVS)." Vickers owns 49 per cent of NVS.


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

NATION MULTIMEDIA: Raises capital to cut expenses
-------------------------------------------------
Nation Multimedia Group (NMG) announced a major capital
increase Tuesday from Bt1 billion to Bt2.5 billion to
reduce debt and interest expenses and strengthen liquidity
for strong and sustained growth in the next five years.
NMG's board informed the Stock Exchange of Thailand last
night that 80 million new shares will be allocated to
existing shareholders at a ratio of one new share for each
old share, at a par value of Bt10.

Thirty million new shares will be sold to specific groups
of investors including institutional investors, as defined
by the SET and the Securities and Exchange Commission.
The registered capital increase to Bt2.5 billion will be
accompanied by an initial reduction in 4.45 million earlier
shares that were not allocated and an increase in 154.45
million new shares.

NMG is the publisher of The Nation and Krungthep Turakij
dailies and a producer of radio and television programmes.


SHINAWATRA GROUP: Sacks 108 employees
-------------------------------------
Shinawatra Group, which recently adopted a new business
structure and management model, last week finished its
first round of shake-ups, resulting in 108 employees losing
their jobs.

In an interview with The Nation after the new structure was
announced earlier this month, Boonklee Plangsiri, executive
committee chairman, said from now, there will be
redundancies every year to boost efficiency.

Shinawatra has not yet registered a loss, as have other
telecom groups, but its revenue is dropping. The cash
generating unit, AIS, saw its profit drop from Bt2.4
billion in the first nine months of 1997 to Bt2.2 billion
for the same period this year.


SIAM CEMENT: Toyota to take control of four SCC metal units
-----------------------------------------------------------
Siam Cement Plc (SCC) has reached an agreement with its
strategic partner Toyota Motor Corporation on the
restructuring plan for its metal group, by which Toyota
Motor Corporation will be offered the majority stake in
four subsidiaries.

According to the Nation, Pramon Sutivong, Siam Cement
Group's senior vice president, said that with the corporate
restructuring scheme SCC would play down its role in non-
core business areas, including metal and electrical
products, by diluting equity.

As well as raising the equity, Toyota agreed to absorb the
Bt2-billion debt burden of the four joint-venture
companies. Although the metal business will continue in the
red next year, there is potential for exports.

There are no negotiations under way, and SCC is not eager
to approach investors, because the four businesses remain
profitable with over 80 per cent of output being exported.
However, SCC will give existing partners priority in
raising their stake. Pramon said that after the
restructuring of the two business groups, all the 3,000
employees would be relocated.


S U B S C R I P T I O N   I N F O R M A T I O N

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