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T R O U B L E D   C O M P A N Y   R E P O R T E R    =20
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             A S I A   P A C I F I C     =20

      Wednesday, January 20, 1999, Vol. 2, No. 13

                    Headlines


* C H I N A   &   H O N G   K O N G *

CA PACIFIC: CA Pacific clients get assurance on claims
CHONGQING IRON: Owner pledges stake for loan
CNT GROUP: UK group bids HK$3.5b for HK's Citybus
GUANGNAN HOLDINGS: Faces questions over accounting changes
LION ASIA LIMITED: Further delay of despatch of circulars

MASS TRANSIT: MTRC in $1b issue for debt refinance
UDL HOLDINGS LIMITED: Postponement on winding-up petition


* J A P A N *

DAIWA SECURITIES: To move to holding company structure
LONG TERM CREDIT: Ex-president to cede retirement benefits=20
NISSAN MOTOR: Open to foreign bids for under-50% stakes=20


* K O R E A *

HALLA CLIMATE CONTROL: Ford takes additional stake
HANBO IRON & STEEL: More companies express interest
HYUNDAI ELECTRONICS: Feud intensifies over merger
LG METALS: Nippon Mining to buy assets of LG Metals=20
LG SEMICON: Feud intensifies over merger

PU-REUN CONSTRUCTION: Starts creditor reconciliation
SHIN-KWANG INDUSTRY: Starts liquidation


* M A L A Y S I A *

KEPPEL TATLEE FINANCE: Approval for merger
KHONG GUAN HOLDINGS: Target of reverse takeover by Marco
SIME SECURITIES: Casio king leads bids


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

PHILIPPINE AIRLINES: Possible aircraft repossessions


* S I N G A P O R E *

IPC CORP: Loan plan terms not finalised
POKKA CORPORATION: Pokka's loan from parent extended


* T H A I L A N D *

BANGKOK COMMERCE: Asset management plan due for BBC
BANK OF ASIA: Results announcement
NAKORNTHON BANK: Govt to assist NTB over funds
SIAM CEMENT: Denies talk of bond issue
THAI PETROCHEMICAL: Most creditors agree to take equity=20


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C H I N A   &   H O N G   K O N G
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CA PACIFIC: CA Pacific clients get assurance on claims
------------------------------------------------------
The liquidators of CA Pacific Securities have moved to calm=20
fears about delays in payouts to creditors and clients of=20
the failed brokerage. In a letter to creditors and clients,=20
PricewaterhouseCoopers liquidators Jan Blaauw and Denis Ho=20
admitted complex issues remained unresolved.

On December 17, a High Court judge ruled that clients of=20
the failed brokerage had individual rights to shares bought=20
through the brokerage and did not have to line up with=20
other creditors. But she acknowledged her ruling=20
complicated the liquidation process.

The liquidators said they were seeking a fairer and cheaper=20
arrangement in tracing individual clients' claims, in=20
accordance with the judge's recommendations. Legal advice=20
was expected before the end of January on the matter.

The liquidators said they were also considering the best=20
way to settle each of the more than 10,000 claims by former=20
clients and creditors. The liquidators said it could be=20
necessary to seek further court directions.

Meetings with creditors' representatives have been arranged=20
for after Lunar New Year to present proposals on how best=20
to proceed with the liquidation. The liquidators said=20
substantial progress would be made this year but it=20
remained unlikely clients or creditors would receive any=20
payout before the second half of the year.

The Stock Exchange of Hong Kong is understood to be facing=20
lengthy delays in the settlement of claims from a margin=20
client seeking a payout from its compensation fund.

CA Pacific clients are seeking about $1.4 billion, but the=20
liquidators have recovered shares worth only $900 million=20
at the time of the brokerage's collapse a year ago. CA=20
Pacific's liquidators said they were making progress with=20
the sale of the failed brokerage's assets, such as seats on=20
the stock exchange. (South China Morning Post 19-Jan-1999)


CHONGQING IRON: Owner pledges stake for loan
--------------------------------------------
Chongqing Iron and Steel's controlling shareholder has=20
revealed it has pledged its entire holding in the H share=20
to a mainland bank to obtain loans of up to 650 million=20
yuan (about HK$604.95 million). Company secretary Ding=20
Shuchen said Chongqing Iron and Steel (Group) had pledged=20
its 61.1 per cent stake, or 650 million shares, as security=20
on a five-year loan made to the H share. (South China=20
Morning Post 19-Jan-1999)


CNT GROUP: UK group bids HK$3.5b for HK's Citybus
-------------------------------------------------
Stagecoach Holdings, the UK's largest bus and train     =20
operator, offered HK$1.95 a share for Citybus Group,     =20
valuing Hongkong's second-biggest bus company at HK$3.49=20
billion (S$757 million) including assumed debt.=20

Stagecoach said it would raise =9C140 million (S$389 million)=20
in a share sale to finance the proposed acquisition from=20
Hongkong paint maker and transportation company CNT Group=20
Ltd. It plans to finance the rest with debt.=20

The British bus operator said holders of 59.2 per cent of=20
Citybus's shares had agreed to accept the offer, a premium=20
of 19.6 per cent to Friday's closing share price, which=20
depends on the approval of CNT's board.=20

Stagecoach cut its price to HK$1.95 on Jan 14 after=20
originally offering HK$2 per share when it entered=20
negotiations to buy the company in December. CNT Group is=20
controlled by businessman Tsui Tsin-tong, who faces several=20
lawsuits over guarantees he gave to agreements with New=20
China Hong Kong Ltd, an investment group he founded with=20
Chinese state-backed companies and Hongkong tycoons in=20
1993.=20

The offer has been accepted by the main shareholders in=20
Citybus, CNT Group Ltd and China Travel International=20
Investment (Hong Kong) Ltd. China Travel controls 9.69 per=20
cent individually and 47.75 per cent jointly with CNT.=20
(Bloomberg, AFX-Asia and Singapore Business Times 19-Jan-
1999)


GUANGNAN HOLDINGS: Faces questions over accounting changes
----------------------------------------------------------
Analysts are trying to determine why Guangnan Holdings made=20
accounting changes that lifted its net debt by $921 million=20
just ahead of the disclosure to creditors last week of its=20
shaky financial position. They are also questioning whether=20
the Hong Kong-listed subsidiary of Guangdong Enterprises=20
(Holdings) (GDE) repaid $592 million it owed to other=20
companies in the group ahead of the group seeking a=20
standstill from international creditors.

An analyst who spoke to Guangnan's financial officers late=20
last week said: "We asked them if they have paid off intra-
company debt, but they said 'no comment'."

Guangnan's net debt of $3.05 billion, disclosed last week=20
as GDE sought a standstill agreement with creditors, was=20
far higher than analysts' projections.

Merrill Lynch, for instance, said the company had disclosed=20
$1.56 billion in net debt above its own projections based=20
on information provided by the company in recent months.

Some analysts are also questioning whether Guangnan, a food=20
distributor and trading firm, paid off monies owed to=20
sister companies within the struggling GDE empire.=20
Guangnan's statements show $592 million in "monies to=20
related companies" for 1997, but there is no such category=20
for last year. (South China Morning Post 19-Jan-1999)


LION ASIA LIMITED: Further delay of despatch of circulars
---------------------------------------------------------    =20
The boards of directors of CIL Holdings Limited and Lion=20
Asia Limited refer to the offer for shares in Lion Asia not=20
already owned by Lucky Choice and the delay of despatch of=20
the Circulars. As additional time is required for compiling=20
the information to be contained in the Circulars, the=20
Circulars were not despatched on 18th January, 1999. It is=20
expected that the Circulars will be despatched as soon as=20
practicable and no later than 22nd January, 1999. (Stock=20
Exchange of Hong Kong 18-Jan-1999)


MASS TRANSIT: MTRC in $1b issue for debt refinance
--------------------------------------------------
The Mass Transit Railway Corp has tapped the local capital=20
market for $1 billion through a public Hong Kong dollar=20
fixed-rate note issue - the largest such issue in the Hong=20
Kong dollar market by a local firm in recent years. The=20
issue formed part of the corporation's existing debt-
issuance programme. The programme envisaged the MTRC=20
raising an estimated $10 billion this year, not including=20
fund-raising from a possible listing. The borrowing target=20
was set for the corporation's capital expenditure for next=20
year.

The MTRC said it would use the proceeds from the $1 billion=20
issue to finance new capital expenditure and refinance=20
maturing debts. The issue met with strong institutional=20
investor demand and demonstrated the MTRC enjoyed continued=20
support from Hong Kong dollar investors, it said.

It was lead-managed by HSBC Markets and underwritten by=20
Bank of East Asia, Deutsche Bank, Goldman Sachs Asia and=20
Hang Seng Bank. (South China Morning Post 19-Jan-1999)


UDL HOLDINGS LIMITED: Postponement on winding-up petition
---------------------------------------------------------
The respective board of directors of UDL Holdings Limited =20
and the Board of KEL Holdings Limited, a 75% subsidiary of=20
UDL, would like to update on the postponement of hearing=20
date of winding-up petition presented by Ajax Pong=20
Machinery Leasing Limited against UDL Kenworth Engineering=20
Limited.
    =20
The winding-up petition presented by Ajax against Kenworth=20
is in relation to an amount of HK$317,465.93. At the=20
hearing on 18th January, 1999, the honourable Madam Justice=20
Le Pichon ordered, among other things, that the said=20
petition be adjourned for 6 weeks with the next hearing=20
fixed at 1st March, 1999.
    =20
In view of the account of facts mentioned above, the Board=20
of KEL confirm that, in relation to the financial position=20
of the respective subsidiaries of KEL, in particular of=20
Kenworth, no material change has occurred from the recently=20
announced information. (Stock Exchange of Hong Kong 18-Jan-
1999)


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J A P A N =20
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DAIWA SECURITIES: To move to holding company structure
------------------------------------------------------
Daiwa Securities, Japan's second-largest brokerage,=20
announced Monday it would transform itself into a holding=20
company in April and slash 20 percent of its work force=20
within about two years. Daiwa's board of directors has=20
already approved the move to a holding company set-up,=20
which will enable companies within the group to act more=20
independently. It is subject to a shareholders' vote=20
scheduled for February 5.

"Daiwa group's move to the holding company structure will=20
allow our securities-related businesses to concentrate=20
their management resources and we aim at being the=20
country's strongest securities group," said Shinichi=20
Yamamura, managing director and member of the board.

Yamamura also said the company would post a 115 billion yen=20
($1 billion) special loss to write off bad debt at three=20
nonbank affiliates as part of the restructuring.

Daiwa will make the move to a holding company after it=20
transfers part of its operations to a wholesale joint=20
venture to be established with Sumitomo Bank. Overseas=20
operations, which accounted for 50.3 billion yen ($440.3=20
million) in current losses for the April-December period,=20
will initially be brought under the holding company and=20
later transferred to the wholesale joint venture.

As part of its restructuring, Daiwa also said it would cut=20
its work force by 20 percent, or 3,000 people, by March=20
2001. (Reuters 18-Jan-1999)


LONG TERM CREDIT: Ex-president to cede retirement benefits=20
----------------------------------------------------------
Binsuke Sugiura, former president of the recently=20
nationalized Long-Term Credit Bank of Japan, is ready to=20
pay back retirement allowances, informed sources said=20
Monday. LTCB and Sugiura are in talks concerning how much=20
of the 930 million yen in retirement benefits that he=20
received after 34 years on the bank's board will be paid=20
back, the sources said.

Under political pressure, LTCB has been asking 23 former=20
executives, including Sugiura, since last August to pay=20
back their retirement allowances, amounting to some 3=20
billion yen, to hold them liable for financial woes that=20
eventually led to the bank's insolvency. Sugiura, 87, is=20
reportedly considering selling his home in Tokyo to raise=20
cash to make the repayments.

LTCB has already won a repayment agreement from the 22=20
other executives. (Jiji Press English News 18-Jan-1999)=20


NISSAN MOTOR: Open to foreign bids for under-50% stakes=20
-------------------------------------------------------
Nissan Motor Co. executives indicated their readiness=20
Monday to allow foreign-owned automakers to acquire stakes=20
of less than 50% in the company.

Renault SA of France confirmed the same day that it is=20
holding talks with Nissan on a possible capital=20
participation. DaimlerChrysler AG Chairman Juergen Schrempp=20
may propose a similar deal to Nissan when he visits Japan=20
on Friday.

Nissan is ready to allow foreign companies to acquire=20
stakes of over 33.4% -- which would give them veto power at=20
shareholders' meetings -- but under 50%, the executives=20
said. In addition, Nissan may take its own stake in a=20
foreign automaker acquiring its shares.

Nissan will consider an offer from DaimlerChrysler=20
seriously, the executives stressed. The German-U.S. company=20
is currently negotiating to acquire a stake in affiliate=20
Nissan Diesel Motor Co.

Negotiations with Ford Motor Co. are also a possibility,=20
the executives said. (Nihon Keizai Shimbun 19-Jan-1999)


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K O R E A=20
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HALLA CLIMATE CONTROL: Ford takes additional stake
--------------------------------------------------
Ford Motor Company has gained control of automobile air-
conditioner and heater maker Halla Climate Control=20
Corporation. Visteor Automotive Systems, a subsidiary of=20
Ford in auto parts manufacturing, has agreed to purchase=20
the 35 percent stake, or 3,730,000 shares, of Halla Climate=20
controlled by Korea Investment Trust Company in order to=20
acquire an overall 70 percent stake in Halla Climate, a=20
Halla spokesman said. The deal is currently waiting=20
government approval, he said.=20

Korea Investment Trust originally owned corporate bills of=20
the Mando Machinery Corporation, a sister company of Halla=20
Climate, but replaced the bills with stocks of Halla=20
Climate as Mando went bankrupt.=20

With plants in Taejon and Pyongtaek, Halla Climate has=20
supplied car air-conditioners and heaters to Hyundai Motor,=20
Kia Motors, Mazda, General Motors Corporation, and Ford.=20
Its turnover was 490 billion won in 1997. (Korea Times 19-
Jan-1999)


HANBO IRON & STEEL: More companies express interest
---------------------------------------------------
With several foreign companies, such as Ispat of Britain,=20
throwing their hats into the ring, the sale of the bankrupt=20
Hanbo Iron & Steel is entering a new phase.=20

Foreign enterprises are asking for in-depth appraisals of=20
the managerial status of the Hanbo and its steel mill in=20
Tangjin, Chungchong-namdo.=20

Creditor banks of Hanbo and Bankers Trust Company of the=20
United States, the leading brokerage firm for the Hanbo=20
takeover, have decided to permit these examinations of=20
Hanbo.=20

Representatives of these foreign enterprises will visit the=20
Tangjin steel mill for on-site assessments of the=20
production lines and the managerial status of Hanbo. It=20
will take about one month for the related firms to wrap up=20
their appraisals.=20

Dongkuk Steel Mill, the only domestic firm which submitted=20
a letter of intent for the takeover of Hanbo, is strongly=20
opposed to the position of the creditor banks and the U.S.=20
brokerage company. Dongkuk threatened it would drop out of=20
the contest should the creditor banks fail to name the=20
purchaser by the end of January. Jan. 23 is the second=20
anniversary of the bankruptcy of Hanbo.=20

Creditor banks allege it will not take very long to=20
complete the appraisal because only a small number of=20
foreign companies are set to conduct the extra assessments.=20
Dongkuk had presented 1.72 trillion won for the takeover in=20
the first round of international bidding.=20

Ispat operates production lines in Southeast Asia and=20
Mexico and is seeking to acquire Hanbo in a bid to make a=20
bridgehead into Korea in order to advance into other Asian=20
nations, particularly into China. (Korea Times 19-Jan-1999)


HYUNDAI ELECTRONICS: Feud intensifies over merger
-------------------------------------------------
Confrontations between the Hyundai and LG groups over the=20
merger terms of their semiconductor affiliates further=20
intensified yesterday, as the former refused to accept LG's=20
demand for employment guarantees. Taking a hardline stance=20
in the semiconductor merger talks, Hyundai said it will not=20
employ all LG Semicon workers for five to seven years after=20
the merger. "Hyundai reconfirmed its intent to absorb all=20
LG Semicon employees," said a statement issued by Hyundai=20
Electronics. "But it is impossible to offer employment=20
guarantees to LG Semicon workers for up to seven years, as=20
such a contract may be disadvantageous to Hyundai=20
Electronics employees," the statement said. It also=20
stressed that Hyundai will refrain from artificial layoffs=20
of LG employees. (Korea Herald 20-Jan-1999)

HEI and LG Semicon have selected their respective financial=20
consultants to evaluate the assets and financial status of=20
LG as part of negotiations to transfer LG's ownership to=20
HEI. LG officials said they have opted for Goldman Sachs=20
and Lehman Brothers while HEI has named Merrill Lynch,=20
setting the stage for perhaps another confrontation in the=20
negotiations. (Korea Times 19-Jan-1999)


LG METALS: Nippon Mining to buy assets of LG Metals=20
---------------------------------------------------
In a move to consolidate its position as Asia's top copper=20
smelter, Nippon Mining & Metals Co. will acquire key assets=20
of South Korea's troubled LG Metals Corp., sources familiar=20
with the deal said Monday. Japan's largest copper smelter=20
and LG group will set up a local joint venture this fall=20
that will buy smelting works and other performing assets of=20
the Korean firm.

Negotiations to close the deal are expected to start soon;=20
Nippon Mining will later this week communicate to LG Metals=20
its evaluation of the firm's assets and conditions for the=20
deal. Nippon Mining is seen investing several tens of=20
billion yen on the arrangement.

Asian copper consumption stood at 4.95 million tons in=20
1997, while production only came to 3.2 million tons. Of=20
that, Nippon Mining had annual output of 450,000 tons, and=20
LG Metals 420,000 tons.

While Nippon Mining and LG group are seen putting up 50%=20
each of the capital for the new joint venture, other=20
Japanese nonferrous metals makers may kick in small=20
percentages, the sources said. The Japanese smelter already=20
has technical relations with LG Metals. (The Nihon Keizai=20
Shimbun 19-Jan-1999)


LG SEMICON: Feud intensifies over merger
----------------------------------------
Confrontations between the Hyundai and LG groups over the=20
merger terms of their semiconductor affiliates further=20
intensified yesterday, as the former refused to accept LG's=20
demand for employment guarantees. Taking a hardline stance=20
in the semiconductor merger talks, Hyundai said it will not=20
employ all LG Semicon workers for five to seven years after=20
the merger. "Hyundai reconfirmed its intent to absorb all=20
LG Semicon employees," said a statement issued by Hyundai=20
Electronics. "But it is impossible to offer employment=20
guarantees to LG Semicon workers for up to seven years, as=20
such a contract may be disadvantageous to Hyundai=20
Electronics employees," the statement said. It also=20
stressed that Hyundai will refrain from artificial layoffs=20
of LG employees. (Korea Herald 20-Jan-1999)

HEI and LG Semicon have selected their respective financial=20
consultants to evaluate the assets and financial status of=20
LG as part of negotiations to transfer LG's ownership to=20
HEI. LG officials said they have opted for Goldman Sachs=20
and Lehman Brothers while HEI has named Merrill Lynch,=20
setting the stage for perhaps another confrontation in the=20
negotiations. (Korea Times 19-Jan-1999)


PU-REUN CONSTRUCTION: Starts creditor reconciliation
----------------------------------------------------
The Seoul District Court advertised in the Korean language=20
Maeil Kyungje that the Pu-reun Construction Company started=20
its creditor reconciliation procedure. The creditors have=20
until February 12, 1999 to file their claims. The company's=20
address is 533-10 Euichungbu-dong, Euichungbu-shi and the=20
president is Mr. Yi Chung-mo.


SHIN-KWANG INDUSTRY: Starts liquidation
---------------------------------------
According to the Korean language Maeil Kyungje's Business=20
Brief section, the Shin-kwang Industry Company was allowed=20
to starts its liquidation procedure by the Suwon District=20
Court.=20


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M A L A Y S I A
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KEPPEL TATLEE FINANCE: Approval for merger
------------------------------------------
Shareholders and warrant holders of Keppel Finance and Tat=20
Lee Finance approved the merger of the two finance=20
companies at their respective extraordinary general=20
meetings convened yesterday. The directors of the merged=20
entity, Keppel TatLee Finance, are Teo Soon Hoe as=20
chairman, Chee Jin Kiong as managing director, Loh Wing=20
Siew, Lim Hock San, Boey Tak Hap, Tan Boon Huat, Ch'ng Jit=20
Koon, Hsuan Owyang and Tan Eng Heng. (Singapore Business=20
Times 19-Jan-1999)


KHONG GUAN HOLDINGS: Target of reverse takeover by Marco
--------------------------------------------------------
In a deal which escaped the attention of the market last=20
month, listed biscuit-maker Khong Guan Holdings Malaysia=20
Bhd announced that it was a target of a reverse takeover by=20
a little-known private firm known as Marco Corporation (M)=20
Sdn Bhd.=20

Sources said Marco Corporation is a private company owned=20
by businessman Robert Tan Hua Choon. Incorporated in 1972,=20
Marco has been the sole distributor of Casio timepieces and=20
calculators since 1974, and Christian Dior timepieces and=20
writing instruments since 1991.=20

According to the deal, Khong Guan is to buy 100 per cent of=20
Marco for RM50 million or RM20.80 per share. In return,=20
Marco shareholders will end up with 37.04 million new Khong=20
Guan shares valued at RM1.35 apiece. This means Marco=20
shareholders will own 61 per cent of Khong Guan's enlarged=20
share capital of 60.653 million shares.=20

Khong Guan's statement to the KLSE on the deal said that=20
the RM50 million purchase consideration for Marco was based=20
on the average guaranteed pre-tax profit of RM5 million for=20
the next three financial years.=20

With the estimated maintainable profit before taxation of=20
approximately RM5.417 million, the purchase consideration=20
of RM50 million is valued at a gross price earnings=20
multiple of 9.23 times, the statement said.=20

Khong Guan said the proposal to buy Marco is undertaken as=20
a rescue of the company as Khong Guan had recorded a net=20
loss of RM6.13 million for calendar year 1997 and RM0.176=20
million for 1996.=20

The company also expects that due to the continuous losses,=20
the cash or cash equivalent of Khong Guan would be=20
depleted. Thus the proposal is expected to improve the cash=20
position, it said. (Singapore Business Times 19-Jan-1999)


SIME SECURITIES: Casio king leads bids
--------------------------------------
Robert Tan Hua Choon is understood to be a front runner in=20
the bid for Kuala Lumpur-based Sime Securities Bhd with an=20
offer of 60 million Malaysian ringgit (S$26.5 million),=20
sources said.=20

Sime Securities, which is part of Sime Bank, was put up for=20
sale on Dec 5 through advertisements in the newspapers. It=20
is understood that the advertisements attracted two other=20
bids, one from a businessman and another from a local=20
brokerage.=20

But sources added that the offer of some RM60 million by Mr=20
Tan, dubbed Malaysia's Casio king because he holds the=20
Casio watch franchise in Malaysia, was the highest among=20
the three.=20

The RM60 million is just the premium for the stockbroking=20
licence. This is because according to the advertisement=20
last month, the liabilities of Sime Securities are to be=20
excluded in determining the offer price of its shares.=20

This is the second attempt by Malaysia's central bank to=20
sell Sime Securities, one of six Sime Bank units placed=20
under the control of Bank Negara following Rashid Hussain=20
Bhd's proposed acquisition of Sime Bank. In April last=20
year, Malaysian financial group PhileoAllied Bhd,=20
controlled by Tong Kooi Ong, said it was in preliminary=20
discussions to acquire Sime Securities. Mr Tong currently=20
owns a stockbroking firm in Ipoh, Perak.=20

It is not immediately known if Mr Tan plans to inject Sime=20
Securities into any listed firm should he succeed in his=20
bid. (Singapore Business Times 19-Jan-1999)


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P H I L I P P I N E S=20
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PHILIPPINE AIRLINES: Possible aircraft repossessions
----------------------------------------------------
Philippine Airlines could have its aircraft repossessed if=20
it does not make a payment to its principal secured=20
creditors by the end of January, according to the ailing=20
airline's new management advisory team.

Peter Foster, former executive of the HK-based Cathay=20
Pacific and recently appointed company chief advisor of=20
PAL, said creditors had rejected a proposed rehabilitation=20
plan for the airline. He said for PAL to keep flying, a new=20
plan acceptable to creditors must be put in place by mid-
March. However, it faced an "immediate struggle" to pay=20
creditors some cash by the end of January.

The Philippine Securities and Exchange Commission is set to=20
make a ruling on the current rehabilitation plan next=20
month. (The Financial Times 19-Jan-1999)


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S I N G A P O R E
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IPC CORP: Loan plan terms not finalised
---------------------------------------
IPC Corp yesterday said it has yet to finalise the terms of=20
a loan restructuring plan with its creditors. IPC has been=20
negotiating to restructure loans worth US$70 million (S$118=20
million) with a syndicate of 15 creditor banks since mid-
1998. (AFX-Asia and Singapore Business Times 19-Jan-1999)


POKKA CORPORATION: Pokka's loan from parent extended
----------------------------------------------------
Pokka Corporation (Singapore) has signed a supplementary=20
agreement to cut the interest rate and extend the term on a=20
loan from its parent, Pokka Corporation, Japan. Under the=20
Jan 11 agreement, the term for the $3.2 million loan has=20
been extended by six months to June 8 this year while the=20
interest has been reduced to 2.75 per cent per annum.=20
(Singapore Business Times 19-Jan-1999)


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
T H A I L A N D=20
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

BANGKOK COMMERCE: Asset management plan due for BBC
---------------------------------------------------
An operating plan for Bangkok Commerce, the new asset=20
management firm formed from the remnants of Bangkok Bank of=20
Commerce, is expected to be submitted to the Bank of=20
Thailand by the end of the month.

Kitti Patpong-pibul, deputy central bank governor, said the=20
plan, prepared by Ernst and Young, would detail operating=20
procedures and capital requirements of the new fund for=20
managing assets.

The Financial Institutions Development Fund will inject new=20
capital into Bangkok Commerce, to help fund debt=20
restructuring and servicing operations for 160 billion baht=20
worth of bad loans.

If loans cannot be rehabilitated, estimated losses would=20
run to 60 billion baht after provisions were written down.
The central bank said it would seek to maximise the value=20
of all assets, including those written off, in order to=20
reduce final costs for taxpayers.

Mr Kitti said rehabilitating the assets was the most cost-
effective approach for the central bank, with higher=20
returns than the 10-20 billion baht that could be expected=20
from a market sale of the portfolio. (Bangkok Post 19-Jan-
1999)


BANK OF ASIA: Results announcement
----------------------------------
The Bank of Asia Pcl reports unaudited annual financial=20
statements as a net loss of Bt7.701bn for the period ending=20
December 31, 1998. This compares with a profit of Bt41m for=20
the corresponding 1997 period. (Stock Exchange of Thailand=20
18-Jan-1999)


NAKORNTHON BANK: Govt to assist NTB over funds
----------------------------------------------
The government will assist Nakornthon Bank (NTB) in raising=20
tier-1 capital if the bank cannot secure sufficient capital=20
from potential foreign partners, Finance Minister Tarrin=20
Nimmanahaeminda said Monday, adding that there had been=20
much progress with the bank recapitalisation.

Tarrin said Nakornthon Bank was negotiating with business=20
partners, including Canada's Bank of Nova Scotia.

If NTB does not succeed in raising sufficient capital from=20
foreign partners, the government will fill the gap, Tarrin=20
said after he returned from the Asia-Europe Finance=20
Minister's meeting in Frankfurt. (The Nation 19-Jan-1999)

The bank, meanwhile refutes the news appearing in the=20
Bangkok Post on Saturday, the 16th January, 1999 that the=20
Bank of Nova Scotia has been chosen as the strategic=20
partner.

NTB says it is currently negotiating with three prospective=20
partners and has not concluded with any of the prospective=20
partners. The preparation for the final due diligence=20
process is underway and it is envisaged that by March 1999=20
one strategic partner will be selected after the final due=20
diligence process has been completed. (Stock Exchange of=20
Thailand 19-Jan-1999)


SIAM CEMENT: Denies talk of bond issue
--------------------------------------  =09
The Siam Cement Group yesterday described as speculative a=20
press report that it would issue domestic bonds worth more=20
than 30 billion baht.

An executive of the industrial conglomerate said the group=20
had a standing policy to diversify its sources of funds as=20
part of a corporate restructuring, but the methods were=20
still under study.

"So far, no decision has been made on the types of=20
financial instrument and the amount involved," she said,=20
noting that the group expected to conclude details sometime=20
in the first quarter.

She said analysts who attended a recent Siam Cement=20
presentation might have jumped to conclusions based on the=20
information they had received. (Bangkok Post 19-Jan-1999)


THAI PETROCHEMICAL: Most creditors agree to take equity=20
-------------------------------------------------------
Nearly all creditors of the financially-troubled Thai=20
Petrochemical Industry Plc (TPI) have agreed to swap the=20
interest due on debts, amounting to US$330 million, into=20
840 million common shares in TPI.

TPI chief financial officer Wachirapunthu Promprasert=20
announced the agreement at a hastily-called press=20
conference in the wake of a media report suggesting that=20
creditors had turned down the interest-to-share conversion=20
plan.

Mr Wachirapunthu insisted that TPI has secured agreement=20
from nearly all of its 142 creditors for the conversion.
The firm denied reports that its creditors had rejected a=20
plan to restructure its $3.2 billion debt. It told the=20
Stock Exchange of Thailand that 70% of its creditors had=20
"indicated their approval of the restructuring plan".

The conversion would result in creditors taking a 30% stake=20
in TPI and at the same time reducing the holding of the=20
Leophairatana family, TPI's founder, to 40% from 60%.
TPI was obliged to pay 10 billion baht last year for its=20
$3.2 billion debt. The interest payment will amount to four=20
billion baht this year.

The TPI chief financial officer said the interest-to-share=20
conversion would help strengthen TPI financially, and to=20
become a low cost petrochemical producer.

TPI sales generated 48 billion baht in 1998, and the=20
company is projecting 40 billion baht in sales this year=20
and 46.8 billion in 2000. (Bangkok Post 19-Jan-1999)


S U B S C R I P T I O N   I N F O R M A T I O N=20

Troubled Company Reporter -- Asia Pacific is a daily=20
newsletter co-published by Bankruptcy Creditors' Service,=20
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,=20
DC USA.  Debra Brennan and Lexy Mueller, Editors.

Copyright 1999.  All rights reserved.  ISSN: 1520-9482. =20

This material is copyrighted and any commercial use,=20
resale or publication in any form (including e-mail=20
forwarding, electronic re-mailing and photocopying) is=20
strictly prohibited without prior written permission of=20
the publishers.  Information contained herein is obtained=20
from sources believed to be reliable, but is not=20
guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6=20
months delivered via e-mail. Additional e-mail=20
subscriptions for members of the same firm for the term of=20
the initial subscription or balance thereof are $25 each.=20
For subscription information, contact Christopher Beard at=20
301/951-6400.

            * * * End of Transmission * * *