/raid1/www/Hosts/bankrupt/TCRAP_Public/990201.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      

      Monday, February 1, 1999, Vol. 2, No. 21

                    Headlines


* C H I N A   &   H O N G   K O N G *

GKC HOLDINGS: Results announcement
GUANGDONG ENTERPRISES: Equities foray damages GDE
GUANGDONG INTERNATIONAL: Angry delegates decry failure
GUANGZHOU INTERNATIONAL: Future of ailing Gzitic unsure


* I N D O N E S I A *

ANTEVE: Station creditors lose bond action
PT ASTRA INTERNATIONAL: May buy back some of its debts


* J A P A N *

ASAHI BREWERIES: To post 18 bln yen in stock losses
DAITO KOGYO: Nitto Construction takeover in October
KYORITSU SECURITIES: H.I.S. to buy troubled firm
SAPPORO BREWERIES: Projects 10 bln yen loss for '98


* K O R E A *

DAEWOO: Credit ratings on Hyundai, Daewoo firms down
HANHAP INDUSTRY: Completes liquidation
HYUNDAI: Credit ratings on Hyundai, Daewoo firms down
KIA MOTORS: Merchant banks face closures due to Kia debt
KEPCO: To sell five subsidiaries

LG SEMICON: Faces losses due to labor strife


* M A L A Y S I A *

KEPPEL FINANCE: KepFin net falls 28%
RENONG: Halim's future in the balance as Renong struggles
TAT LEE FINANCE: Results announcement
TENCO: Lays out restructuring plan


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

PHILIPPINE AIRLINES: Code-sharing with MAS from Feb 1
PHILIPPINE AIRLINES: To prevent seizure by paying $37.91m
PILIPINO TELEPHONE: PLDT denies Piltel creditor threats


* S I N G A P O R E *

GBI REALTY: Boustead guarantees 30% of GBI loan
GOLDTRON: Winds up 11 inactive units
TAIPING CONSOLIDATED: Says court protection extended


* T H A I L A N D *

KASET THAI SUGAR: Mills seek partners for restructuring
RUAMPHOL ENTERPRISE: Mills seek partners for restructuring
SIAM YAMAHA: Joint venture in default
THAI CARPET: TDB taking 46% stake in Thai Carpet
THAI IDENTITY SUGAR: Mills seek partners for restructuring


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

GKC HOLDINGS: Results announcement
----------------------------------
GKC Holdings Limited has informed the Stock Exchange of
Hong Kong that a summary of the statement of affairs of
German Kitchen (China) Limited, which has been presented by
the Liquidators to the creditors and members of GK China at
the meetings of the creditors and the members on 16
November 1998, will be despatched to shareholders of the
Company for information.

GK China, which was put into liquidation on 20 October
1998, was the major operating subsidiary of the Group and
is a major subsidiary of the Company. In the absence of a
restructuring proposal and with the liquidation of GK
China, the Directors consider the Group no longer
maintained a sufficient level of operation and assets.
     
According to the Statement of Affairs, the liabilities of
GK China as at 20 October 1998 was approximately HK$800
million against an estimated realisable value of assets of
approximately HK$26 million, with an estimated deficiency
of approximately HK$778 million.
     
It is also stated in the Statement of Affairs that the book
value of assets of GK China as at 20 October 1998 was
approximately HK$202 million, the book value of the
liabilities of the GK China was approximately HK$796
million and the book value of the shareholders' deficit was
approximately HK$594 million.
     
The company also informed the SEHK it is not able to
publish its audited results for the year ended 31 March
1998 and the unaudited results for the six months ended 30
September 1998. The company is missing a significant
portion of relevant documents to ascertain assets and
liabilities. The Directors also noted from newspaper
reports that the Liquidators of GK China have reported to
the Commercial Crime Bureau that there were irregular
payments for the 12-month period before the liquidation of
GK China. (Stock Exchange of Hong Kong 29-Jan-1999)


GUANGDONG ENTERPRISES: Equities foray damages GDE
-------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, chairman of the Guangdong People's Congress, Zhu
Senlin, revealed yesterday that Guangdong Enterprises
(Holdings) (GDE) had suffered huge losses on securities
investments. The admission will add weight to the belief
that stock speculation contributed to debt problems at
other struggling mainland-backed investment companies.

Mr Zhu said some listed GDE arms expanded operations and
invested badly with their money. He said they acquired a
listed firm whose shares fell sharply. He did not identify
the listed arms involved, the investment or the extent of
the losses.

Guangdong Investment and its subsidiaries Guangdong Brewery
Holdings, Guangdong Building Industries and Guangdong
Tannery, said no funds raised by them had been used by GDE
for speculative activities. They said the proceeds from any
securities issued had been used in accordance with the
purposes stated at the time of issue.

Analysts generally believed the investment Mr Zhu was
referring to was property concern Nam Fong International
Holdings, in which GDE and its listed flagship Guangdong
Investment have a combined stake of about 32.1 per cent and
an estimated book loss of about HK$1.2 billion. This is
based on the assumption that the two firms took 437 million
shares in Nam Fong at HK$3. Nam Fong's shares closed at
19.2 cents yesterday.

Guangdong Investment took a 3 per cent stake in Nam Fong
when it was listed in December 1996 as part repayment of
about HK$200 million that Nam Fong owed. The stake was
diluted to about 1.3 per cent. Later it bought 8.64 per
cent while GDE purchased 19.89 per cent from Nam Fong
chairman Wong Wah in September 1997. This boosted their
combined stake to 29.7 per cent, which GDE subsequently
increased to about 32.1 per cent last July.

Its shares have fallen sharply over the past year, which
brokers said was partly due to dumping of shres held for
margin clients. The sharp decline was likely to lead
Guangdong Investment to book a possible HK$400 million
provision for last year. With other provisions, the firm
was likely to take a charge of about HK$600 million.
Analysts said provisions for non-performing assets and
diminished value in investments would more than wipe out
its estimated $300 million in profit for last year, leaving
the firm in the red.


GUANGDONG INTERNATIONAL: Angry delegates decry failure
------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, delegates to the usually docile Guangdong
People's Congress blasted the state government for lack of
accountability on the failure of Guangdong International
Trust and Investment Corp. The Guangdong provincial
government was questioned on how it allowed Gitic to rack
up massive debts and disciplinary measures against those
responsible were demanded.

Delegate Huang Yongguang declared that Gitic's debts
exceeded assets by more than 10 billion yuan. Another
elederly representative demanded that the "playboys and
princelings" that drove Gitic into the ground be brought up
on corruption charges.


GUANGZHOU INTERNATIONAL: Future of ailing Gzitic unsure
-------------------------------------------------------
According to the Hong Kong Standard, the assets of
Guangzhou International Trust and Investment Corporation
(Gzitic) are still able to cover all borrowings, but the
balance could change dramatically as a result of recent
asset sales and problems with debt repayment, said Shen
Bainian, vice-mayor of the southern Guangdong provincial
capital.

Mr Shen said a preliminary audit by the Guangzhou
government found that Gzitic had total debts of 19 billion
yuan compared with assets of over 20 billion yuan. He said
the Guangzhou government is trying to help Gzitic sell
assets but will not provide any cash if the company's debts
become unmanageable.

Analysts said Gzitic has a better financial base than
Gitic. An analyst said it was highly unlikely that the
Guangzhou government would allow Gzitic to go bust in the
current circumstances. Another said China's poor earnings
outlook would need to change for investors to feel more
comfortable.


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

ANTEVE: Station creditors lose bond action
------------------------------------------
According to the Hong Kong Standard, in a bankruptcy case
against Anteve, one of Indonesia's four private television
stations, the judge ruled that in an agreement with Korean
and Japanese bondholders, it was the guarantor -- Bakrie
Investindo - that was liable. The station was sued in the
bankruptcy court for defaulting on US$70 million in bonds.

Of the US$70 million in bonds, KEB (Asia) Finance holds
US$20 million; IBJ Asia, Korean Commercial Finance, and
Shinhan Investment Bank US$15 million, and JP Morgan
Securities Asia US$5 million. Holders of the remainder were
unknown.

Creditors' lawyer Jony Ariefbangun said there could be an
appeal.

Anteve is controlled by businessman Aburizal Bakrie.


PT ASTRA INTERNATIONAL: May buy back some of its debts
------------------------------------------------------
The Asian Wall Street Journal reported PT Astra
International, an Indonesian conglomerate in the automotive
and agro-industry sectors, plans to spend up to $45 million
to buy back some of its unsecured debts. Astra had
announced last October that its business has fallen so much
that it had stopped paying interest on about $1.4 billion
in loans. The article reported that Astra has a total of $2
billion in foreign debt obligations plus about 2 trillion
rupiah in local currency debt.

Astra will finance this buyback with cash it raised from
the sale of assets, including the proceeds from the sale of
Astra Microtronics Technology last year. The unsecured debt
to be re-purchased includes convertible bonds due in 2001,
2002, 2003, and 2006, all non-trade debts owed to creditors
that are documented under bilateral or syndicated
facilities, inter-company loan agreements, and promissory
notes.

Debt which is not repurchased will be restructured.

The article mentioned that two days ago Astra already
reached an agreement to buy back 250 billion rupiah in
secured bonds by offering to pay 96.5 percent of the bond
price, plus interest up to the bond settlement date.  

This move was described as part of an ongoing effort by
Astra to restructure its debts by the end of February.  
However it was noted that many creditors, particularly
Astra's Japanese creditor banks (which account for the
majority of Astra's bank debts) have balked at the idea of
writing off some of their loans prior to completing the
restructuring of the rest.  

Astra was once Indonesia's most profitable and well managed
conglomerate and suffered greatly when the rupiah's 1997
plunge against the dollar made it impossible for it to
service its foreign debt. Astra's automobiles sales, once
one of its main revenue generators, were off 85 percent in
1998, and expected to drop further this year.  


=========
J A P A N  
=========

ASAHI BREWERIES: To post 18 bln yen in stock losses
---------------------------------------------------
Asahi Breweries Ltd. has booked about 18 billion yen in
stock appraisal losses as an extraordinary loss for the
fiscal year ended December 1998, company officials said
Thursday. The company posted 3.8 billion yen in appraisal
losses as nonoperating losses in fiscal 1997. Asahi
Breweries, which uses the cost method to value its stock
holdings, saw an increase in latent losses on cross-
shareholdings since last summer.

It expects pretax profit to have increased 10% to 50
billion yen. It marked 11.5 billion yen in extraordinary
profit on the sale of its shares in Torii Pharmaceutical
Co. to Japan Tobacco Inc. Net profit appears to have risen
16% to 8.5 billion yen. The company expects to pay an
annual dividend of 12 yen per share for fiscal 1998.
(The Nihon Keizai Shimbun 29-Jan-1999)


DAITO KOGYO: Nitto Construction takeover in October
---------------------------------------------------
Midsize general contractor Nitto Construction Co. and
ailing builder Daito Kogyo Co. are set to announce plans
Friday to merge on Oct. 1, company sources said. Daito,
which has applied for protection from creditors under the
Corporate Rehabilitation Law, will present a restructuring
plan to the Tokyo District Court on April 23, incorporating
the plan to be absorbed into Nitto, the sources said.

The two companies have agreed that Daito must cut its work
force to 580 from a recent 900 by the end of April, while
Nitto must trim its payroll to 400 from 573 at the end of
September. By doing so, the companies expect an initial
staff of about 1,000 at the merged firm, the sources said.

Nitto will gain Daito's expertise on maritime and harbor
civil engineering. Nitto also believes it will benefit
under a Ministry of Construction program, hammered out a
year ago, that gives merged construction firms preferential
treatment in bidding on public works projects, the sources
added. (The Nihon Keizai Shimbun 29-Jan-1999)


KYORITSU SECURITIES: H.I.S. to buy troubled firm
------------------------------------------------
H.I.S. Company, a discount travel services company said its
president, Hideo Sawada, will buy Kyoritsu Securities Co.,
a financially troubled Tokyo brokerage, for several hundred
million yen, out of his own pocket. The privately held
brokerage may then issue more shares and sell them to
H.I.S. as part of the company's plans to diversify into the
financial services business. Separately, H.I.S. announced
plans to buy back as many as 300,000 shares, or as much as
900 million yen of its stock. (Bloomberg 29-Jan-1999)


SAPPORO BREWERIES: Projects 10 bln yen loss for '98
---------------------------------------------------
Sapporo Breweries Ltd. expects to have recorded a
consolidated net loss of about 10 billion yen for the year
ended December, compared with a 24.5 billion yen loss a
year ago and an earlier net profit prediction of 1.5
billion yen. The Tokyo-based brewer blames the loss on
sluggish beer sales and a 7 billion yen stock appraisal
loss. The company is likely to cut its annual dividend for
1998 by 1-2 yen from the 7 yen paid out the year before.
(The Nihon Keizai Shimbun 29-Jan-1999)


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

DAEWOO: Credit ratings on Hyundai, Daewoo firms down
----------------------------------------------------
A local credit rating agency has lowered the debt ratings
of the subsidiaries of Hyundai and Daewoo Groups. Korea
Investors Service downgraded its ratings on corporate bonds
and commercial papers issued by eight Hyundai subsidiaries,
including Hyundai Motor, and seven Daewoo affiliates
including Daewoo Electronics. These companies had been
under credit watch for possible downgrade since late last
year.

KIS downgraded its rating on Daewoo Electronics bonds from
A minus to BBB minus while lowering the rating on the
company's CPs from A2 minus to A3 minus. Daewoo Electronics
is due to be swapped for Samsung Motors under a corporate
restructuring agreement signed in early December.

Meanwhile, Daewoo Corp., the trading and construction arm
of Daewoo Group, saw the KIS ratings on its bonds and CPs
plunge by three notches. Bonds issued by Daewoo Telecom
tumbled from BBB to BB plus and its CPs declined from A3 to
B plus. In addition, Daewoo Heavy Industries also suffered
a drop in its credit rating. (Korea Times 29-Jan-1999)


HANHAP INDUSTRY: Completes liquidation
--------------------------------------
The Seoul District court advertised in the Korean language
Maeil Kyungje that the Hanhap Industry Company completed
its liquidation procedure. The company's address is 25-2
Yeoeuido-dong, Youngdeungpo-gu, Seoul and the president is
Mr. Koh Byong-chul.


HYUNDAI: Credit ratings on Hyundai, Daewoo firms down
-----------------------------------------------------               
A local credit rating agency has lowered the debt ratings
of the subsidiaries of Hyundai and Daewoo Groups. Korea
Investors Service downgraded its ratings on corporate bonds
and commercial papers issued by eight Hyundai subsidiaries,
including Hyundai Motor, and seven Daewoo affiliates
including Daewoo Electronics. These companies had been
under credit watch for possible downgrade since late last
year.

The rating on Hyundai Motor, Hyundai Group's flagship
company, was lowered from A to BBB plus. Hyundai Motor is
poised to acquire Kia Motors and its commercial vehicle
subsidiary, Asia Motors, which went belly-up in 1997.

KIS downgraded the ratings on bonds issued by Hyundai Motor
Service and Hyundai Precision & Ind. from A minus to BBB
plus, respectively. The ratings on CPs of the two Hyundai
subsidiaries were lowered from A2 minus to A3 plus.

The ratings on bonds and CPs of Hyundai Heavy Industries
were lowered from A plus to A and from A2 plus to A2. In
addition, KIS lowered its ratings on Inchon Iron & Steel,
Hyundai Merchant Marine, Hyundai Mipo Shipyard and Hyundai
Elevator by one notch. (Korea Times 29-Jan-1999)


KIA MOTORS: Merchant banks face closures due to Kia debt
--------------------------------------------------------               
Some of the nation's 14 operating merchant banks are likely
to face forced closures this year after 16 troubled ones
were shut down in 1998. Sources said that several merchant
banks are expected to incur huge losses from their souring
loans extended to two troubled auto makers, Kia Motors
Corp. and Asia Motor Co., which are being taken over by
Hyundai Motor Co. Merchant banks, which made loans to Kia
and Asia, are required to calculate loan losses in their
book in the 1998 fiscal year to end at March 31.

The affected merchant banks have requested the government
to allow them to reflect part of their possible losses from
the debt of Kia and Asia proportionately over the next
three to five years.

Financial sources estimated that merchant banks have a
total of 1 trillion won in loans to Kia and Asia, most of
which is expected to classified as bad debt and losses.
(Korea Times 29-Jan-1999)


KEPCO: To sell five subsidiaries
--------------------------------               
The Korea Electric Power Corp. (KEPCO) announced yesterday
that it will sell off five subsidiaries of Korea Power
Engineering Co., including Korea Power Plant Service, Korea
Nuclear Fuel, Hansung Global Industry and Seil Data
Communication by 2002.

The state-run corporation will introduce a management
contract system in April or May under which president,
executives and chiefs of regional branches will sign
contracts on performance goals and they will be responsible
for their performances. KEPCO yesterday set up the
reformative management improvement program at a meeting of
200 executives at its headquarters in Seoul. (Korea Times
29-Jan-1999)


LG SEMICON: Faces losses due to labor strife
--------------------------------------------
The Korea Herald reported that worker walkouts over the
government-orchestrated 'big deal' merger of the LG Semicon
Company and Hyundai Electronics Industry Company could
result in large operating losses, estimated to reach 90
billion won for the LG subsidiary.  

The article mentioned that two large clients of LG Semicon,
Philips and Compac Computer which together last year bought
memory chips valued at $900 million, are now reportedly
considering diverting their purchase lines to Japan or to
Taiwan. Additionally, Hitachi of Japan announced its
plans to suspend a $320 million per year OEM-based chip
purchasing arrangement from LG Semicon due to concerns
about transferring their technology to rival Hyundai.   

The report also mentioned that IBM, a big buyer of LG
chips, is also closing monitoring the walkout by LG
employees.  

Under the urging from the government, LG and Hyundai had
promised to merge their respective semiconductor
businesses, LG Semicon Company and Hyundai Electronics
Industry Company, into what would be the world's second
largest producer of dynamic random access memory (DRAM)
chips. After intervention by Korean President Kim Dae-jung,
LG agreed to transfer all of LG Semicon to Hyundai.  
However, employees at LG Semicon plants across Korea went
on strike last week demanding sustained job security after
the forced takeover.  

A related article in the Korea Times reported that Hyundai
has refused to put job guarantees in writing for the LG
employees as even Hyundai employees have no such
assurances.  Furthermore, a such a document could hinder
the attraction of foreign capital.

According to stock market data in Korean newspaper reports
in October, the Hyundai and LG semiconductor groups are
estimated to have debt-to-equity ratios of 935 percent and
617 percent, respectively.


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

KEPPEL FINANCE: KepFin net falls 28%
------------------------------------
Provisions for doubtful debts led Keppel Finance to report
a 28 per cent drop in net earnings to $16.4 million last
year, and resulted in an $8.5 million loss for merger
partner Tat Lee Finance.

But both finance companies said they expect the new merged
entity, Keppel TatLee Finance, to be more profitable,
although 1999 will be "another difficult year".

Keppel saw an 8.4 per cent rise in turnover for the year
ended Dec 31 to $93.3 million, despite a 4.8 per cent fall
in loan assets. But profits fell due to a "substantial
increase in general provision for doubtful debts", it said.
Earnings per share fell to 7.78 cents, from 10.82 cents a
year ago, while net tangible asset backing per share rose
to $1.65 from $1.58.

In the same period, Tat Lee saw turnover drop 8 per cent to
$40.8 million. A "significant increase in specific and
general provisions" for doubtful debts led to a loss of
$8.5 million, compared to profits of $8.9 million in 1997.
Loss per share was 11.79 cents, while net tangible asset
backing per share fell to $2.11, from $2.23 a year ago.

Neither company proposed a final dividend for 1998.

Looking ahead, both companies said the merger -- expected
to be completed on Feb 13 -- will result in an entity with
a larger capital base, trimmer cost structure and a sharper
competitive edge.


RENONG: Halim's future in the balance as Renong struggles
---------------------------------------------------------
As troubled conglomerate Renong's ambitious projects leave
Malaysia's largest and one of the most politically
connected business empires struggling to repay debts of
about RM20 billion, calls for Mr Halim Saad to be held
accountable are growing.

In recent weeks, two of the country's biggest companies --
Rashid Hussain Bhd and MBf Holdings Bhd -- have seen their
top executives take a back seat following government-backed
rescues.

Mr Halim, a cigar-chomping, reclusive tycoon -- he's only
attended three press conferences in his nine years as the
head of Renong -- may soon join them. As the government
reviews a plan to have Renong's cash-rich toll road unit
sell a record RM8.5 billion in bonds to help bail out the
parent company, 45-year-old Mr Halim's future at Renong
hangs in the balance. He was not immediately available for
comment.

Mr Halim, a trained accountant who, according to a close
associate, thinks like a mathematician when doing business,
has had to contend with criticism that his successes were a
product of his contacts.

Renong lost RM794.1 million in the year ended June 30,
compared with a profit of RM469.5 million a year earlier.
The company missed payments in October of RM12 million in
interest and guarantee fees on two loans from several
banks, effectively defaulting on its other loans.

Renong's shares have plummeted 78 per cent in a year,
shaving RM1.2 billion off the value of Mr Halim's holdings
in Renong. He owns 291.3 million Renong shares, or a 16.5
per cent stake.

Still, what has rankled investors is the way he has gone
about trying to fix Renong's problems, starting with the
imperious announcement on Nov 17, 1997, that UEM, Renong's
construction unit, would buy a 32.4 per cent of Renong for
RM2.34 billion. Investors saw it as a bailout for Renong
and Mr Halim.

Now, as Renong waits for another unit to bail it out,
investors and analysts are looking for signs that
shareholders and bondholders will not be left out in the
cold again. (Bloomberg and Singapore Business Times
29-Jan-1999)


TAT LEE FINANCE: Results announcement
-------------------------------------
Provisions for doubtful debts led Keppel Finance to report
a 28 per cent drop in net earnings to $16.4 million last
year, and resulted in an $8.5 million loss for merger
partner Tat Lee Finance.

But both finance companies said they expect the new merged
entity, Keppel TatLee Finance, to be more profitable,
although 1999 will be "another difficult year".

Keppel saw an 8.4 per cent rise in turnover for the year
ended Dec 31 to $93.3 million, despite a 4.8 per cent fall
in loan assets. But profits fell due to a "substantial
increase in general provision for doubtful debts", it said.
Earnings per share fell to 7.78 cents, from 10.82 cents a
year ago, while net tangible asset backing per share rose
to $1.65 from $1.58.

In the same period, Tat Lee saw turnover drop 8 per cent to
$40.8 million. A "significant increase in specific and
general provisions" for doubtful debts led to a loss of
$8.5 million, compared to profits of $8.9 million in 1997.
Loss per share was 11.79 cents, while net tangible asset
backing per share fell to $2.11, from $2.23 a year ago.

Neither company proposed a final dividend for 1998.

Looking ahead, both companies said the merger -- expected
to be completed on Feb 13 -- will result in an entity with
a larger capital base, trimmer cost structure and a sharper
competitive edge.


TENCO: Lays out restructuring plan
----------------------------------
Malaysian property and industrial chemicals maker Tenco
yesterday detailed a financial and corporate restructuring
plan to help revive itself. The loss-making company said
the plan would include a capital reconstruction and a
rights issue. It said the company's share capital would be
reduced by 50 sen for every existing ordinary share of one
ringgit each. It also proposed a four-for-five rights issue
of 23.2 million shares at RM1 each. Most of the proceeds
will be used to repay unsecured debts of slightly over 20
million Malaysian ringgit (S$8.9 million).
(Reuters 29-Jan-1999)


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

PHILIPPINE AIRLINES: Code-sharing with MAS from Feb 1
-----------------------------------------------------
Malaysia Airlines and Philippine Airlines (PAL) will begin
code-sharing on flights operated by Malaysia Airlines
between Malaysia and the Philippines commencing from
February 1. For Philippine Airlines, the agreement is
significant since it is the first joint service the carrier
has entered into since reopening for business on October 7
last year after a 13-day shutdown.

The code-share service gives Philippine Airlines a seat
allocation on each of the 11-times-weekly flights operated
by Malaysia Airlines between Kuala Lumpur, Kota Kinabalu
and Kuching and the Philippines cities of Manila and
Cebu.

The service will be marketed and sold in Malaysia and the
Philippines as joint Malaysia Airlines/Philippine Airlines
flights, hence giving the latter a presence in the
Malaysian market for the first time since June 1998.
(Business Times 29-Jan-1999)


PHILIPPINE AIRLINES: To prevent seizure by paying $37.91m
---------------------------------------------------------
Philippine Airlines (PAL) will pay $37.91 million to
secured creditors today to forestall the possible seizure
of its fleet, the ailing carrier's interim rehabilitation
receiver said yesterday. It will be the first such payment
to be made by PAL to its creditors since defaulting on more
than $2 billion debt in June 1998. The amount is far less
than the $100 million the creditors had originally demanded
as partial payment.

In a letter to Securities and Exchange Commission chairman
Perfecto Yasay, the interim receiver supervising PAL's
rehabilitation said secured creditors "have liens" over 19
of the carrier's revenue-producing aircraft.

It warned that "there is substantial risk" that if no
payment is made, any of these secured creditors may take
legal action to seize PAL planes in a third country not
bound by Philippines and US court orders.

The interim receiver said it was holding talks with export
credit agencies supporting the creditors for an agreement
to prohibit the confiscation of aircraft before March 15,
when PAL is expected to submit a revised rehabilitation
plan. (Agence France-Presse and Business Day [Thailand]
29-Jan-1999)


PILIPINO TELEPHONE: PLDT denies Piltel creditor threats
-------------------------------------------------------
Philippine Long Distance Telephone Co (PLDT) said     
yesterday that local creditor banks of its subsidiary
Pilipino Telephone Corp (Piltel) have made no demands that
it guarantee Piltel's loans. Local newspaper Philippine
Daily Inquirer reported last week that creditor banks of
Piltel threatened to call in PLDT's and Metro Pacific Co's
credit lines if Piltel couldn't pay its 34.9 billion peso
(S$1.5 billion) loans.

"We can confirm no such demand has been made," PLDT told
the exchange. PLDT owns about 58 per cent of Piltel and
Metro Pacific is the Philippine flagship of Hongkong-based
First Pacific Co which last year bought a 17.2 per cent
stake in PLDT.

Piltel is in the middle of talks with creditors for a debt
repayment plan and has suspended payment in the meantime.
PLDT said it would be best for all parties to see Piltel
continuing its mobile phone operations. (Bridge News and
Singapore Business Times 29-Jan-1999)


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

GBI REALTY: Boustead guarantees 30% of GBI loan
-----------------------------------------------
Industrial products group Boustead Singapore has guaranteed     
the repayment of 30 per cent of a $66 million loan taken
out by its associate, GBI Realty. The guarantee, which
works out to $19.8 million, reflects the 30 per cent stake
that Boustead has in GBI. GBI is developing Boustead
Industrial Park, a 60-year leasehold parcel in Ubi Avenue
1. The 54,443 sq m site, to be used for clean and light
industries, is sub-divided into nine smaller plots.

Boustead said yesterday the guarantee was in connection
with a restructuring of a $66 million loan from
International Factors Leasing (IFL). The guarantee
increases Boustead's commitment in GBI to $46.8 million
from $27 million. (Singapore Business Times 29-Jan-1999)


GOLDTRON: Winds up 11 inactive units
------------------------------------
Goldtron Ltd -- which is in the midst of a major
restructuring -- has wound up 11 subsidiaries whose
petitions were published in The Straits Times yesterday.

Most of the companies were dormant or inactive, such as
Goldtron Intrade, Goldtron Communications International,
Dynafoods and Goldtron Teleservices. Among the others were
Goldtron Telecommunications and Goldtron Magmedia Trading.

The telecommunications and electronics group last September
announced a debt moratorium to allow it time to
restructure. Accounting firm Price Waterhouse was appointed
to help develop the restructuring plan.

At the time, Goldtron said all of this has come about
because of changes in the policies of a number of foreign
lenders and extraordinary provisions of $140.29 million
made by the group in its March 31, 1998 results.

Earlier this month, the group reported a $64 million loss
in the six months to Sept 30, 1998, as it discontinued its
manufacturing and telecommunications research and
development facilities. (Singapore Business Times 29-Jan-
1999)


TAIPING CONSOLIDATED: Says court protection extended
----------------------------------------------------
Property firm Taiping Consolidated has secured an extension
to a court order which protects it from its creditors. It
said on Wednesday that the deadline was now March 1. The
original restraining order against creditors was due to
expire on Jan 30. Taiping secured the interim extension
because a court hearing about the company's scheme of
arrangement with its creditors has been adjourned to March
1. (Reuters and Singapore Business Times 29-Jan-1999)


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

KASET THAI SUGAR: Mills seek partners for restructuring
-------------------------------------------------------
The advisor on rehabilitation plans for three major sugar
mills -- Kaset Thai Sugar, Ruamphol Enterprise, and Thai
Identity Sugar -- has proposed three options to restructure
the mills which have a combined debt of $450 million.

Mike Wansley of Deloitte Touche Tohmatsu Corporate
Restructuring said three options are led by the quest for
strategic partners which will hopefully result in the
injection of fresh capital into the mills. The other two
choices involved mobilization of funds from existing mill
owners through a capital increase program, or proposing
that creditors convert debt to equity.

Wansley said under the Bankruptcy Law, details of the
rehabilitation plan will be finalized within 90 days from
January 21, the date which the Civil Court instructed the
mills to pursue a debt restructuring plan.

The majority of shares are held by the Siriviriyakul
Family. The three sugar mills are expected to report a
combined revenue of 6.9 billion baht this year. According
to Wansley, the three sugar mills have recently received
financial assistance from its five major creditors and six
other financial institutions.

The new loan will be paid back prior to the $450 million of
outstanding debt, which has to be restructured, he said,
adding that the mills have stopped paying interest and
principle since the court assigned them to conduct debt
restructuring.

Creditor banks of the three mills are led by Krung Thai
Bank (KTB), Thai Farmers Bank (TFB), Bank of Ayudhya (BAY),
Bangkok Bank (BBL), and BankThai. (Business Day [Thailand]
29-Jan-1999)


RUAMPHOL ENTERPRISE: Mills seek partners for restructuring
----------------------------------------------------------
The advisor on rehabilitation plans for three major sugar
mills -- Kaset Thai Sugar, Ruamphol Enterprise, and Thai
Identity Sugar -- has proposed three options to restructure
the mills which have a combined debt of $450 million.

Mike Wansley of Deloitte Touche Tohmatsu Corporate
Restructuring said three options are led by the quest for
strategic partners which will hopefully result in the
injection of fresh capital into the mills. The other two
choices involved mobilization of funds from existing mill
owners through a capital increase program, or proposing
that creditors convert debt to equity.

Wansley said under the Bankruptcy Law, details of the
rehabilitation plan will be finalized within 90 days from
January 21, the date which the Civil Court instructed the
mills to pursue a debt restructuring plan.

The majority of shares are held by the Siriviriyakul
Family. The three sugar mills are expected to report a
combined revenue of 6.9 billion baht this year. According
to Wansley, the three sugar mills have recently received
financial assistance from its five major creditors and six
other financial institutions.

The new loan will be paid back prior to the $450 million of
outstanding debt, which has to be restructured, he said,
adding that the mills have stopped paying interest and
principle since the court assigned them to conduct debt
restructuring.

Creditor banks of the three mills are led by Krung Thai
Bank (KTB), Thai Farmers Bank (TFB), Bank of Ayudhya (BAY),
Bangkok Bank (BBL), and BankThai. (Business Day [Thailand]
29-Jan-1999)


SIAM YAMAHA: Joint venture in default
-------------------------------------
The Asian Wall Street Journal reported in a front page
story about Japanese investments in Thailand that Siam
Yamaha Company is in default. Siam Yamaha is a Thai joint
venture, which is 28 percent owned by Yamaha Motor
Corporation of Japan, currently has less than 10 percent of
the Thai motorcycle market.

Siam Yamaha's local partner, the KPN Group, has debt
repayment burdens that exceeds its cash flows from
operations. KPN reportedly employed about 7,000 people in
1996 when 80 percent of its $1 billion revenue came from
motorcycle business operations. Currently it has only 4,000
employees and sales are reportedly as small fraction of the
peak level.


THAI CARPET: TDB taking 46% stake in Thai Carpet
------------------------------------------------
Thai Danu Bank (TDB) will take a 46 percent stake in
Thailand Carpet Manufacturing as part of a debt
restructuring program, the companies said. The bank will
swap 153 million baht ($4.1 million) of debt for 25.56
million new shares, a Thai Danu spokeswoman said.

About 66 acres of land in Nakorn Ratchasima provinces,
valued at 22 million baht, will also be transferred to the
bank.

The debt-for-equity swap values the new shares of Thailand
Carpet at 6 baht a piece, a 50 percent premium to the most
recent trade on the Stock Exchange of Thailand.

The company earned a profit of 103 million baht in the nine
months to September 30, compared with a loss of 302 million
baht in the same period a year earlier. (Bloomberg and
Business Day [Thailand] 29-Jan-1999)


THAI IDENTITY SUGAR: Mills seek partners for restructuring
----------------------------------------------------------
The advisor on rehabilitation plans for three major sugar
mills -- Kaset Thai Sugar, Ruamphol Enterprise, and Thai
Identity Sugar -- has proposed three options to restructure
the mills which have a combined debt of $450 million.

Mike Wansley of Deloitte Touche Tohmatsu Corporate
Restructuring said three options are led by the quest for
strategic partners which will hopefully result in the
injection of fresh capital into the mills. The other two
choices involved mobilization of funds from existing mill
owners through a capital increase program, or proposing
that creditors convert debt to equity.

Wansley said under the Bankruptcy Law, details of the
rehabilitation plan will be finalized within 90 days from
January 21, the date which the Civil Court instructed the
mills to pursue a debt restructuring plan.

The majority of shares are held by the Siriviriyakul
Family. The three sugar mills are expected to report a
combined revenue of 6.9 billion baht this year. According
to Wansley, the three sugar mills have recently received
financial assistance from its five major creditors and six
other financial institutions.

The new loan will be paid back prior to the $450 million of
outstanding debt, which has to be restructured, he said,
adding that the mills have stopped paying interest and
principle since the court assigned them to conduct debt
restructuring.

Creditor banks of the three mills are led by Krung Thai
Bank (KTB), Thai Farmers Bank (TFB), Bank of Ayudhya (BAY),
Bangkok Bank (BBL), and BankThai. (Business Day [Thailand]
29-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

Troubled Company Reporter -- Asia Pacific is a daily
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Copyright 1999.  All rights reserved.  ISSN: 1520-9482.  

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