/raid1/www/Hosts/bankrupt/TCRAP_Public/990115.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Friday, January 15, 1999, Vol. 2, No. 10

                    Headlines


* C H I N A   &   H O N G   K O N G *

CAPETRONIC: Prime Pacific possible buyer for Capetronic
GUANGDONG INTERNATIONAL: Gitic creditors in for long wait
GUANGZHOU INTERNATIONAL: Gzitic told to transfer assets
NAM YUE (GROUP): Another Guangdong company in trouble
PEREGRINE INVESTMENTS: Row brewing over probe of Peregrine

SING TAO HOLDINGS: Former Peregrine chairman bidder


* I N D O N E S I A *

PT ASTRA INTERNATIONAL: Declared bankrupt by Japanese banks


* K O R E A *

CHUNGBUK BANK: Fails to raise cash, President resigns
HAITAI DIARY: Starts creditor reconciliation
MIJU GROUP: Affiliates applied for workout program
PUSAN CARGO TERMINAL: Completed creditor reconciliation  
SAMMI TOOL STEEL: Completed liquidation procedure

SAMNIP FOOD: Liquidation plan approved
SEYON INDUSTRY: Completes creditor reconciliation
TONGYANG STEEL: Starts liquidation
WONYANG PHARMACEUTICAL: Completed creditor reconciliation

  
* P H I L I P P I N E S *

MERALCO: Government to sell 10 per cent stake
PHILIPPINE AIRLINES: Marubeni vetoes rehabilitation plan


* S I N G A P O R E *

TRANSTECH: Receives court protection from creditors


* T H A I L A N D *

CROWN PROPERTY: To maintain holdings in SCB and Siam Cement
SIAM STEEL: Unable to pay salaries


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

CAPETRONIC: Prime Pacific possible buyer for Capetronic
-------------------------------------------------------
On 9th January, 1999, Prime Pacific International Limited
entered into a conditional share sale agreement with
Gallium whereby Prime Pacific conditionally agreed to buy
from Gallium a total of 89,976,706 Shares in Capetronic
International or approximately 54% of the issued ordinary
share capital of the Company from Gallium for cash at
HK$0.4 per Sale Share or approximately HK$36 million in
aggregate. Gallium is a company incorporated in the British
Virgin Islands on 21st January, 1991 with limited liability
and a wholly-owned subsidiary of Carrington Gold.
     
Upon and subject to completion of the purchase of the Sale
Shares from Gallium, Prime Pacific will own approximately
54% of the issued ordinary share capital of the Company and
will make an unconditional cash offer for all the Shares,
the Preference Shares and the Options outstanding not
already owned or held by Prime Pacific or any parties
acting in concert with it.


GUANGDONG INTERNATIONAL: Gitic creditors in for long wait
---------------------------------------------------------
According to the Hong Kong Standard, creditors of Guangdong
International Trust and Investment Corp (Gitic) could wait
more than six months for courts to award bankruptcy
repayments.

Banking sources in Hong Kong said they had been notified
that Gitic had formally filed for bankruptcy and creditors
had been asked to appear in court in the southern city of
Guangzhou on Saturday in connection with this.


GUANGZHOU INTERNATIONAL: Gzitic told to transfer assets
-------------------------------------------------------
According to the Hong Kong Standard, a Chinese court has
ordered Guangzhou International Trust and Investment Corp
(Gzitic) to transfer some assets to another domestic trust
firm to defray overdue debt, an official of the company
said.

The source also said the company would transfer its 26.7
per cent stake in Guangzhou Securities to Anhui
International Trust and Investment Corp after a forced
auction of the shares failed due to opposition from China's
top securities watchdog China Securities Regulatory
Commission (CSRC).

After the auction ended on Saturday without any bidders,
the Anhui court ruled that Gzitic must now transfer its 40
million shares in the securiites firm at 1.13 yuan each,
the same as the floor price at the auction. The ruling
would require the approval of CSRC.

Gzitic would still owe Anhui Trust 2.8 million yuan if the
transfer was enforced, because it was also obliged to pay
interest on the credits.


NAM YUE (GROUP): Another Guangdong company in trouble
-----------------------------------------------------
According to the Hong Kong Standard, Nam Yue (Group)
Company Ltd, the Macau investment window arm of the
Guangdong provincial government faces financial
restructuring amid doubts over its ability to pay back
loans totalling US$333 million. The company disclosed this
in a meeting yesterday with its creditors.

A steering committee was formed by 10 creditor banks, led
by Standard Chartered Bank, to discuss with Goldman Sachs,
the financial adviser appointed by Nam Yue, the matter of
restructuring. Guangdong province was represented by Dr Wu
Jiesi.

Nam Yue will be included in a comprehensive restructuring
plan that also involves its its sister companies Guangdong
Enterprises and Guangdong Investment. Nam Yue is wholly
financed and owned by the provincial government and the
sole agent in Macau for all the import and export
corporations and other economic enterprises of Guangdong.

According to Goldman Sachs, Nam Yue is responsible for
coordinating over 80 enterprises of Guangdong in Macau.


PEREGRINE INVESTMENTS: Row brewing over probe of Peregrine
----------------------------------------------------------
According to the Hong Kong Standard, legislator Eric Li Ka-
cheung yesterday said he did not think there was a prima
facie case for the government to conduct a probe into the
spectacular collapse early last year of Peregrine. He said
the finance committee would obviously be concerned with the
cost of any probe, which could be up to $50 million, and
any benefit that could be reaped from it. A spokesman for
the government however said on Tuesday that cost
considerations would not stand in the way of a government
probe into Peregrine's collapse.

Liquidators of Peregrine Investments Holdings now estimate
its debts to be about $4.5 billion, up from the $3 billion
circulated last year.

Furthermore, sources involved in the winding up of this
group said that the inclusion of contingent liabilities
could raise the figure to 40 billion. Creditors are now
estimated to receive between 10 and 40 percent of what they
are owed.  

The article also reported that the liquidation could take
five years to complete, given that about 200 countries from
around the world are in this process.

Peregrine Investments failed January 1998 largely due to a
bad $256 million loan made by Peregrine Fixed Income to the
Indonesian taxi operator PT Steady Safe. Approximately half
of the Peregrine Investments holdings were held through
Peregrine Fixed Income.  


SING TAO HOLDINGS: Former Peregrine chairman bidder
---------------------------------------------------
Shares in Sing Tao Holdings resumed trading after an
agreement was clinched by Miss Aw to sell an 11.13 per cent
stake in the company to the Investment Company of China
(ICC) through its vehicle Pacifc Victory, and 11.87 per
cent to the China Enterprise Development Fund (CEDF),
through its Hong Kong Sunrise subsidiary. The stake is
being sold at $1.20 per share. A partnership agreement is
expected to be made by January 26.

According to the South China Morning Post, the former
chairman of the collapsed investment bank Peregrine, Philip
Tose, was yesterday revealed to be a director of Investment
Company of China (ICC). Mr Tose's presence on the board
stems form Peregrine's original role as sponsor and manager
of the fund when it was launched in 1992 through Peregrine
Direct Investments.

ICC's board also includes a managing director of Soros Fund
Management, Sean Warren, and Rodolfo De Benedetti, the
chief executive of Italian investment group CIR
International.

ICC said yesterday its only interest in Sing Tao was its
value as an investment, despite the fact that most of the
fund's interests have been in mainland property and
infrastructure projects.


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

PT ASTRA INTERNATIONAL: Declared bankrupt by Japanese banks
-----------------------------------------------------------
The Asian Wall Street Journal reported that PT Astra
International, Indonesia's largest assembler of
automobiles, has received default notices from Sanwa Bank
Ltd. and Tokai Bank stating that all principal and
interest has come due and must be paid immediately. The
notices were delivered December 30, 1998, and January 4,
1999 respectively.  

Astra has a $200 million facility agreement signed Dec. 22,
1994 with a syndicate of about ten banks lead by Sanwa, as
well as a $10 million uncommitted revolving credit facility
with Tokai. The article additionally reported that Dai-ichi
Kangyo Bank Ltd. last month also ordered Astra to repay the
principal and interest on a $150 million term loan
facility. Astra announced last October that its business
has fallen so much that it had stopped paying interest on
about $2 billion in foreign loans, and local currency debt
of 2 trillion rupiah.

In December, Astra presented a debt restructuring proposal
to its creditors that called for its debt to be divided
into three tranches with varying grace and repayment
schedules. However, many of the creditors have refused to
accept Astra's moratorium on interest payments on its debt.  


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

CHUNGBUK BANK: Fails to raise cash, President resigns
-----------------------------------------------------
The Korea Herald reported that the Chungbuk Bank's
president resigned after the bank failed to raise 120
billion won through a rights offering before the end of
1998 as it had promised to the Financial Supervisory
Commission (FSC). The FSC has demanded that the bank submit
a new plan to raise 200 billion won that address Chungbuk's
low capital adequacy ratio and its trouble in attracting
foreign funds.  

Last year, the FSC, which is Korea's financial watchdog
institution, established an evaluating committee to
diagnose 12 commercial banks which failed to meet the
minimum 8 percent capital adequacy requirements set by
the Bank for International Settlements (BIS). It issued
closure orders for five banks in late June, and asked seven
other banks (Chungbuk Bank) to provide drastic self
rehabilitation plans. The FSC reportedly plans to keep
alive only those banks that are able to meet the 8 percent
BIS capital adequacy ratio by June 2000 via these new
rehabilitation plans.  

Chungbuk Bank is headquartered in the city of Chongju,
which is the capital of the Chungchong-puk province in
Korea.


HAITAI DIARY: Starts creditor reconciliation
--------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Suwon District Court allowed for the
Haitai Diary Company to start its creditor reconciliation
procedure.


MIJU GROUP: Affiliates applied for workout program
--------------------------------------------------
The December 25th edition of the Korean language Maeil
Kyungje reports that the Miju Group's four affiliate
companies applied for workout program on December 24. The
four affiliate companies are Miju Co., Miju Steel Co.,
Miju Metal Co., and Miju Steel Mill Co.

The creditor banks of the Miju Group will hold their
meeting on January 6, 1999 to decide whether to approve the
companies' application.


PUSAN CARGO TERMINAL: Completed creditor reconciliation  
-------------------------------------------------------
The Pusan District Court advertised in the December 18th
edition of the Korean language Maeil Kyungje that the Pusan
Cargo Terminal Co. completed its creditor reconciliation
procedure. The company's address is 651-1 Umkung-dong,
Sasang-gu, Pusan and the president is Mr. Sung Ki-su.


SAMMI TOOL STEEL: Completed liquidation procedure
-------------------------------------------------
According to the December 23rd edition of the Korean
language Maeil Kyungje's Business Brief section, the Sammi
Tool Steel Company's liquidation plan was approved by the
Seoul District Court.


SAMNIP FOOD: Liquidation plan approved
--------------------------------------
According to the December 16th edition of the Korean
language Maeil Kyungje's Business Brief section, the Samnip
Food Co.'s liquidation plan was approved by the Suwon
District Court.


SEYON INDUSTRY: Completes creditor reconciliation
-------------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Seyon Industry Company completed its
creditor reconciliation. The company's address is 196-6
Hapchong-dong, Mapo-gu, Seoul and the president is Mr. Shin
Dong-wook.


TONGYANG STEEL: Starts liquidation
----------------------------------
According to the December 17th edition of the Korean
language Maeil Kyungje's Business Brief section, the
Tongyang Steel Co.'s liquidation plan was approved by the
Taechon District Court.


WONYANG PHARMACEUTICAL: Completed creditor reconciliation   
---------------------------------------------------------
The Pusan District Court advertised in the December 25th
edition of the Korean language Maeil Kyungje that the
Wonyang Pharmaceutical Co. completed its creditor
reconciliation. The company's address is 260 Taeyon 3-dong,
Nam-gu, Pusan and the president is Mr. Shim Chung-sup.


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

MERALCO: Government to sell 10 per cent stake
---------------------------------------------
The Philippine government aims to raise more than 9bn pesos
through the sale of a 10 per cent stake in Manila
electricity Co (Meralco), the country's largest power
distributor.

The government plans to divest itself of the stake through
an international issue of sovereign bonds, convertible into
Meralco shares in five to seven years, according to a
report in the Financial Times.

Edgardo Espiritu, finance secretary, said the government
aimed to complete the issue by the middle of February to
take advantage of current "uptick" on the Philippine stock
market.

The issue is expected to be the first of a series of sales
of equity in state-run companies and privatisations planned
by the administration under a programme agreed with the
International Monetary Fund.

The decision to sell the government stake in Meralco comes
at a time of increased takeover speculation surrounding the
company, which is controlled by the Lopez family -- one of
the Philippines' oldest, and once most powerful, business
dynasties -- through a 16 per cent stake.

Over the past few months speculation has risen about the
emergence of rivals for control of Meralco, principally
Eduardo "Danding" Conjuangco.

Rumours on the Philippine stock market and in the press
have suggested Mr Conjuangco, a former Marcos associate
with close links to President Joseph Estrada, was
considering selling his controlling stake in San Miguel,
the brewing and food conglomerate, to finance a takeover of
Meralco.


PHILIPPINE AIRLINES: Marubeni vetoes rehabilitation plan
--------------------------------------------------------
The Asian Wall Street Journal reported that the Marubeni
Corporation has also criticized the proposed rehabilitation
plan for the Philippine Airlines (PAL) since it included a
waiver of due interest and deferment of principal
amortaizations. Marubeni is the security trustee for two
Airbus A320-200 aircraft leased to PAL.

PAL's management prepared the rehabilitation plan submitted
to the Philippine Securities Exchange Commission. The
commission has allowed PAL to stop payments on $2.1 billion
in debts pending this plan's approval.

The rehabilitation plan calls for an equity infusion of
$150 million in fresh equity, reduction of fleet size,
cutting overhead costs, an indefinite grace period on
principal loan payments, and eventually finding a strategic
partner.

Most of PAL's creditors have rejected this plan, and the
SEC will decide next month on the plan for PAL.


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

TRANSTECH: Receives court protection from creditors
---------------------------------------------------
Electronics manufacturer Transtech Electronics Pte Ltd has
obtained court protection from its creditors and is now
negotiating with them to restructure its debts, industry
sources told Singapore Business Times.

It is believed that Transtech owes between $26 million and
$30 million in total to some 214 creditors, including the
$16 million or so it owes its Malaysian-listed unit Tru-
Tech Holdings Bhd, these sources told BT last week.

The court protection order has been in force since early
December, and Transtech is believed to be in the midst of
proposing a debt arrangement scheme, to be voted on by
creditors later this week.

Replying to BT queries, the company would only confirm that
it was under court protection, and declined to comment
further.

It is believed that Transtech ran into cashflow problems
last year due to two failed joint ventures and investments
in projects which have not taken off.

Transtech also received in-principle approval from the
Stock Exchange of Singapore for a mainboard listing to
raise $18 million to grow its business in November 1997,
but the listing never materialised. DBS Bank, which was to
have been its issue underwriter, is one of the group's
principal bankers, along with Oversea-Chinese Banking Corp.
It is understood that DBS has extended credit facilities of
some $35 million to Transtech.


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

CROWN PROPERTY: To maintain holdings in SCB and Siam Cement
-----------------------------------------------------------
The Crown Property Bureau, the investment arm of the Thai
royal family, intends to maintain its stakes in Siam
Commercial Bank and Siam Cement despite an 80 per cent drop
in income during 1998, Chirayu Isarangkun na Ayutthaya,
director, said.

The Financial Times reports the secretive Bureau, with
large holdings in finance, industry, property construction,
media and food processing, said it had enough retained
earnings to maintain its 35 per cent stake in Siam
Commercial Bank. The bank recently applied for government
assistance to realise at least Bt40bn in new capital and
the Bureau was likely to invest about Bt10bn to keep its
stake, analysts said.

Some observers doubted that the Bureau could find this
amount of cash, given that its two main sources of income
-- Siam commercial and Siam Cement -- posted losses in
1998. Other investments in property, construction and
media, such as Siam Sindhorn, Christiani & Nielsen and
Independent Network News, have gone sour. Rents, another
big source of income, have fallen.

But Mr Chirayu quashed such speculation this week, saying
that although many of the companies in which the Bureau had
invested were in trouble, the Bureau had no debts to
service.

Siam Cement, recently transformed into a holding company
that will spin off stakes in a number of subsidiaries, does
not need new capital and the Bureau, which owns about 35
per cent, supported the company's restructuring plan, Mr
Chirayu said.


SIAM STEEL: Unable to pay salaries
----------------------------------
The Siam Steel Group is in deep financial trouble and may
not be able to pay salaries for some time, an executive
said.

The Nation reports the admission emerged only yesterday
after workers at Siam Steel's three factories in Samut
Prakan organised a protest, which prompted it to order the
shut down of its other factories for safety reasons.

Until yesterday, some observers had thought Siam Steel
might not be in as bad a situation as other steel firms
which had invested heavily in capital-intensive upstream
production. Losing out on the Board of Investment selection
a few years ago to build an integrated steel mill complex,
Siam Steel, under the chairmanship of Wanchai Kunanantakul,
has kept its focus on downstream industries like steel pipe
auto-parts, furniture and steel containers.

However, a Siam Steel executive told The Nation yesterday
that the group had already stopped repaying debts under an
agreement with its creditors. The workers' demand for
bonuses and fringe benefits, are "impossible", she said.

"It is not possible for us to borrow from banks to pay
bonuses as we did last year because we are now under a debt
moratorium," the executive said, adding that the company
owed several billions of baht to virtually all banks in the
country.

Hit by the economic crisis, the Kunanantakul family has
been forced to sell its stake to foreign partners in many
subsidiaries including Siam Perstorp Co, Siam Matsushita
Steel Co, Siam Steel Service Centre Plc and Siam Steel
Group International Plc. Siam Steel Group has also cut its
stake in Siam Okamura Steel, one of the three factories
where the workers protested yesterday, to just 5 per cent
from 51 per cent.

Most of Siam Steel Group's 20 companies are not listed on
the stock market and therefore have not made their
financial statements public. The listed subsidiary Siam
Steel Group International reported a loss of Bt1.6 billion
last year. The group employs 6,000 to 7,000 workers.


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 1999.  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 $575 for 6
months 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 * * *