/raid1/www/Hosts/bankrupt/TCRAP_Public/990215.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 15, 1999, Vol. 2, No. 31

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS (FAR EAST): Albatronics stakes pledged
ALBATRONICS (FAR EAST): Sheds no light on share loss
BEIJING AUTO: Debt soars at Beijing Auto & Motor Cycle
DALIAN INTERNATIONAL: French bank sues Dalian
EVERLINE DEVELOPMENT LIMITED: Winding-up petition

FOUR SEAS TRAVEL: Seeks help to pay back $119m loan
GUANGDONG ENTERPRISES: Bankers to meet over restructuring
GUANGDONG ENTERPRISES: Goldman under fire on GDE revamp
GUANGDONG INTERNATIONAL: Demise seen marking end of era
GUANGDONG INTERNATIONAL: Japanese banks seek full repayment

GUANGZHOU INTERNATIONAL: Gzitic, lenders hope for revamp
PEREGRINE INVESTMENTS: Liquidators resell stake to US firm
RIGHTEOUS: Creditor takes control of Righteous
SAKURA BANK: Sakura to seek more funds
SHANGHAI BAOSTEEL: Ratings cut by S&P

SHENZHEN SPECIAL: Admits debt payment woes
SHUM YIP INVESTMENT: Defends ability to repay foreign debt
SING TAO HOLDINGS: Sing Tao buyer goes to market
SUPER HONOUR LIMITED: Winding-up petition
WINSEC INVESTMENT LIMITED: Winding-up petition


* J A P A N *

DAI-ICHI KANGYO BANK: To post losses for third year
MAZDA MOTOR: Unveils loan program for domestic dealers


* K O R E A *

CHUNGBUK BANK: Cho Hung accepts Chungbuk tie-up
HANGUK REAL ESTATE: Under workout program
SEORYUNG INDUSTRY: Completes liquidation plan
SHIN DONG AH GROUP: Group head arrested on embezzlement
TAEHAN REAL ESTATE: Under workout program

TAEHWA SHOPPING: Completes liquidation plan


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

HOMEOWNERS SAVINGS AND LOAN: Authorities force closures
RURAL BANK OF GUIGUINTO: Authorities force closures


* S I N G A P O R E *

SGT ASIA: DBS Land unit seeks wind-up order


* T H A I L A N D *

ALPHATEC: Charn files petition to block ATEC plan
ICC INTERNATIONAL: To make debt payment
JASMINE INTERNATIONAL: To restructure debts
SIAM CEMENT: Tackling interest and debt burdens
THAI PETROCHEMICAL: Chemical arm seeks waiver on payments

THAI TELEPHONE: New chairman and debt restructuring


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

ALBATRONICS (FAR EAST): Albatronics stakes pledged
--------------------------------------------------
According to the South China Morning Post, Albatronics (Far
East) said two substantial shareholders had pledged most of
their interest in the company to financial institutions as
collateral, but none of the shares had been sold on
Tuesday. The disclosure was made after the exchange asked
for an explanation of a 77 per cent plunge in its share
price on Tuesday which resulted in the counter being
suspended until further notice. The company yesterday said
chairman Wakaki Kaizo had 7.5 per cent of Albatronics
pledged to a financial institution out of a 9.73 per cent
stake. Managing director Nakahara Fukumori had used 9.75
percent of Albatronics as collateral for personal loans out
of a 10.87 per cent stake, the company said.


ALBATRONICS (FAR EAST): Sheds no light on share loss
----------------------------------------------------
According to the Hong Kong Standard, Albatronics shares
fell 77.7 per cent to $0.039 before the suspension of
trading on Feb 9. The closing price of the share on Feb 8
was $0.175.

The company's chairman said in a statement issued through
the Stock Exchange of Hong Kong that the company was not
aware of any reasons for such a decrease other than the
results of the company for the nine months ended Dec 31 and
the restructuring plan of the company announced on Feb 6.


BEIJING AUTO: Debt soars at Beijing Auto & Motor Cycle
------------------------------------------------------
According to the South China Morning Post, Beijing's oldest
car plant, the state-owned Beijing Auto & Motor Cycle
Manufacturing Plant set up in 1958, could face bankruptcy
after five years of losses.

It started to lose money in 1994, with a loss of 1.4
million yuan. The loss rose to 21 million yuan in 1996, 71
million yuan in 1997 and 97 million yuan last year, the
Beijing Youth Daily reported yesterday.

A company official said the company had a debt-asset ratio
of 40 per cent, about half the average for a state firm,
and was considering the sale of one of its sites and moving
to a cheaper location in the suburbs.

Beijing Auto has a joint venture with Chrysler producing
Cherokee Jeeps.

An official of the joint venture said the financial
difficulties of Beijing Auto had no impact on the company.


DALIAN INTERNATIONAL: French bank sues Dalian
---------------------------------------------
According to the South China Morning Post, the Tianjin
branch of Banque National de Paris has sued Dalian
International Trust and Investment (Ditic) in local courts,
seeking US$3 million in amounts due. A banker involved in a
$20 million certificate of deposit lent to Ditic said it
had yet to decide whether to follow BNP's lead in taking
Ditic to court. Bankers said success by BNP would trigger
similar actions by other banks.


EVERLINE DEVELOPMENT LIMITED: Winding-up petition
-------------------------------------------------
A petition for the winding up of Everline Development
Limited was presented to the High Court on Jan 15 by Choy
Kam Wing of Room 2105, Tung Sing House, Lei Tung Estate, Ap
Lei Chau, Hong Kong, and the said petition is directed to
be heard before the court at 11:00 a.m. on Mar 24, and any
creditor or contributory of the said company desirous to
support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or
his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by Tam Lee Po Lin, Nina for
Director of Legal Aid, 27th Floor, Queensway Government
Offices, 66 Queensway, Hong Kong, on payment of the
regulated charges for the same.


FOUR SEAS TRAVEL: Seeks help to pay back $119m loan
---------------------------------------------------
According to the Hong Kong Standard, listed travel agent
Four Seas Travel International Ltd yesterday announced it
is unable to pay back loans totalling $119.35 million
demanded by its bankers.

As at Feb 5, the company's cash balance was $6.20 million,
or only 5.2 percent of the amount of payment demanded by
the bankers.

The board is considering a debt restructuring plan to
reduce the short-term cash flow difficulties. The firm is
seeking support from Universal Yield Ltd, which had
acquired a 57.5 per cent stake in Four Seas, as well as
from South China Strategy.

Trading of the company's shares resumed yesterday after
suspension on Jan 26 as Universal Yield had made an offer
for all the issued shares, outstanding warrants and
outstanding share options of Four Seas.

Universal Yield Ltd has indicated that it is premature to
consider any restructuring plan until the offers have been
completed and until it has obtained information relating to
the proposed restructuring from Four Seas.


GUANGDONG ENTERPRISES: Bankers to meet over restructuring
---------------------------------------------------------
According to the South China Morning Post, bankers will
meet Hong Kong Monetary Authority officials today to
express dismay over the restructuring of Guangdong
Enterprises (Holdings) (GDE).

Steering committee members representing creditor banks at a
meeting yesterday with GDE's financial adviser, Goldman
Sachs, expressed dissatisfaction over the lack of
guarantees that there would not be a cut in loan principal
repayments by GDE. They were also unhappy that the
provincial government would take assets from GDE as
security for injecting assets into the firm, taking
priority over existing creditors.

Bankers were also disappointed that auditing firm KPMG
might not be able to provide a financial report on GDE by
February 28 as previously stated. They planned to write in
protest to Guangdong executive vice-governor Wang Qishan.

The Hong Kong Standard reported on the outrage expressed by
creditors of GDE over rumors of request by GDE for bankers
to cancel about half of its debt in exchange for an equity
injection from the Guangdong government. When asked by
banks about the possibility of a request for haircut, GDE
officials did not give a definite answer. They told the
steering committee they would provide more details at the
meeting with the creditors on Mar 1.

A subsidiary of GDE, Guangnan Holdings, said last night it
had postponed a news conference originally scheduled for
today to discuss its core business. The postponement was
made because GDE is unergoing a restructuring.

The GDE creditors also wanted their own adviser and
obtained the company's consent to appoint
PricewaterhouseCoopers at the meeting.


GUANGDONG ENTERPRISES: Goldman under fire on GDE revamp
-------------------------------------------------------
According to the South China Morning Post, creditor banks
yesterday complained to the Hong Kong Monetary Authority
(HKMA) that Goldman Sachs had blocked their communication
with GDE.

Goldman Sachs said there was no point in making interim
comments until they complete an investigation and are ready
to make a complete report.

Creditor banks said Goldman's move was not conducive to
drawing up a restructuring proposal acceptable to them.
They expressed dismay to the HKMA on four key issues: a
possible cut in principal repayments; a possible delay in
its restructuring timetable; that the Guangdong provincial
government, which owned GDE and should provide
unconditional support, would receive security from GDE in
return for US$20 million in trade facilities, taking
priority over creditors; that they had been kept in the
dark about the restructuring work.

They had also stated firmly that there should be no
reduction in loan principal repayments. They said this
would mean heavy losses for banks and would set a bad
example for other mainland corporates.

While denying there would be a 50 per cent cut in principal
repayments, Goldman Sachs said it was too early to
ascertain the cash flow from the assets to be injected into
GDE.

The investment bank is expected to present on Mar 1 an
updated financial report on GDE prepared by KPMG, and an
outline of the proposed asset injections. However, it is
not yet known when a detailed restructuring plan would be
ready.

A source said it was common practice worldwide for a new
lender to an insolvent firm to take security to protect it
from bankers pulling the plug.

The Hong Kong Standard mentioned about the proposed
injection of about $15 billion into GDE by Guangdong's
provincial government.


GUANGDONG INTERNATIONAL: Demise seen marking end of era
-------------------------------------------------------
According to the South China Morning Post, the historical
mission of window companies of mainland government agencies
has come to an end and the firms have to rely on their own
credit standing to raise funds, said Guangdong executive
vice-governor Wang Qishan.

Mr Wang said at the early stage of reform and
liberalisation, window companies emerged to allow more
channels to raise funds other than those using sovereign
credit. The credit of these firms was not real corporate
credit, nor was it government or sovereign credit.

He said foreign financial institutions for many years did
not lend to mainland corporates on the basis of strict
assessment on the merits of the companies and projects but
on illegal guarantees, promises and letters of support by
local governments with some confusing these with sovereign
credit. He criticised some foreign financial institutions
for violating international practices in lending to
mainland corporates.

Based on the assumption of sovereign credit, they charged
window companies far higher interest than that demanded by
sovereign credit.

The bankruptcy of Gitic has exposed these problems. He said
both borrowers and creditors had to pay the cost of such
malpractices.


GUANGDONG INTERNATIONAL: Japanese banks seek full repayment
-----------------------------------------------------------
Nine major Japanese banks plan to join forces to press the
Guangdong provincial government for repayment of loans to
the failed Guangdong International Trust and Investment
Corp. (GITIC), banking sources said Friday.

The banks, including the Bank of Tokyo-Mitsubishi and
Sumitomo Bank, are drafting a letter to Guangdong Gov. Lu
Ruihua with a copy also to be sent to People's Bank of
China Governor Dai Xianglong, the sources told Kyodo News.

"The complete revocation of the previous policies as well
as repeated assurances by high-ranking officials to
Japanese bankers will no doubt cause long-lasting damage to
the confidence of not only Japanese but also international
bankers in the Chinese market," the letter says.

"We strongly disagree with the revocation of policies and
are of the opinion that properly registered loans should
receive priority treatment and the provincial government is
responsible for any shortfall."

The banks plan to urge the Guangdong government to take
"immediate measures" to restore the confidence of Japanese
and other international banks in the handling of the
liquidation of GITIC. (Kyodo News 12-Feb-1999)


GUANGZHOU INTERNATIONAL: Gzitic, lenders hope for revamp
--------------------------------------------------------
According to the Hong Kong Standard, Gzitic officials said
at a meeting with creditors that the People's Bank of China
and the Guangzhou municipal government did not want to see
the trust forced into bankruptcy and that they planned to
appoint a restructuring adviser. A major creditor bank said
Gzitic did not offer anything substantial and it seemed to
be trying to buy time.

Under Gzitic's own accounting, it has assets of about 20
billion yuan and foreign debts of 19 billion, but the
Guangzhou city government, which helped Gzitic raise 3
billion yuan to repay its foreign debt, has asked for a
more complete audit.


PEREGRINE INVESTMENTS: Liquidators resell stake to US firm
----------------------------------------------------------
According to the South China Morning Post, the liquidators
of Peregrine Investments Holdings -- PricewaterhouseCoopers
-- have sold the failed investment bank's stake in a United
States fertiliser company.

PricewaterhouseCoopers valued Peregrine's remaining direct
investment portfolio at US$200 million and said that more
sales were likely before July. In the past two months the
liquidators have sold seven investments from the direct
investment portfolio.

Peregrine's 10 per cent stake in American Phosphate Corp
was sold back to the company.


RIGHTEOUS: Creditor takes control of Righteous
----------------------------------------------
According to the South China Morning Post, leather goods
retailer Righteous (Holdings) has been taken over by a
creditor of chairman Chan Kar-leung after he failed to
repay to Consolidated International margin loans of US$4
million with the 46.89 per cent stake in Righteous used as
collateral.

Chen Gouping, a former official of China's Ministry of
Foreign Affairs and former division chief of Xinhua News
Agency Affairs Institute, paid HK$26.78 million for 41.89
per cent of the company.

Retaining a 5 per cent stake in the company, Mr Chan will
use HK$23.78 million of the proceeds to settle loans.

A general offer is being launched at 6.5 cents a share,
equal to the purchase price.

Consolidated International is 99 per cent owned by Chen and
1 per cent owned by an investor called Lau Ngai.

According to the Hong Kong Standard, Always Full
Investments owner Chan Kar-leung is selling his 41.89 per
cent stake in Righteous to Project China. The proposed sale
at 6.5 cents per share represents a premium of about 4.84
per cent over the share's closing price on Jan 28, the date
of the transaction agreement. It also represents a discount
of 50.76 per cent to Righteous' audited net assets of 13.2
cents per share as of Aug 31 last year. Immediately after
the transaction, Always Full will hold 178.14 million
shares, representing about 18.11 per cent of Righteous'
entire issued share capital.

Always Full has expressed its intention to continue owning
such shares for at least one year, according to Righteous.

Under the deal, the buyer Project China is required to make
a mandatory conditional offer for all the issued shares
that it does not own or agree to acquire. Project China is
asking for 6.5 cents per share, which is equal to the price
paid in the completed deal.


SAKURA BANK: Sakura to seek more funds
--------------------------------------
According to the South China Morning Post, Sakura Bank was
planning to seek 200 billion yen more under the
government's bank recapitalisation program, raising the
total it intended to secure from the government to 800
billion yen. With funds sourced from the capital market as
well, the bank will be raising a total of 1.14 trillion yen
in capital before the end of March, when it closes its
books for the business year. The amount is second only to
1.2 trillion yen that Fuji Bank plans to raise.


SHANGHAI BAOSTEEL: Ratings cut by S&P
-------------------------------------
The Asian Wall Street Journal reported that the Standard &
Poor's Ratings Group has lowered the long-term foreign
currency corporate credit rating of Shanghai Baosteel Group
from BBB+ to BBB-. This move reflects concerns over recent
government restructuring of the company.  Specifically, the
government merged Baosteel and two other Shanghai-based
steel companies, increasing its assets to $15 billion yuan.  
However, this merger is also expected to increase
Baosteel's debt to more than 40 billion yuan, plus saddle
Baosteel with the costs of upgrading equipment and
restructuring management at four additional struggling
state-run steel plants.  

The article mentioned that fierce competition from other
regional steel producers is expected to continue to
pressure Chinese steel prices downward.


SHENZHEN SPECIAL: Admits debt payment woes
------------------------------------------
According to the South China Morning Post, an official with
Shenzhen Special Economic Zone Development Finance
confirmed yesterday the company was having problems paying
about US$20 million in short-term loans to a number of
foreign banks. Overseas bankers said the company stopped
principal and interest payments since the start of the
year.

In October, Shenzhen mayor Li Zibin said Gitic's closure
would not affect Shenzhen's credit outlook.

Shenzhen Development Finance is a wholly-owned subsidiary
of Shenzhen Special Economic Zone Development Group, which
in turn is wholly owned by the investment holding company
established by the city to manage its portfolio. Its
primary business involves fund-raising and consultancy.
The company is also understood to be heavily invested in
the property market.

The firm attributed its repayment problems to diminishing
capital turnover and tightening lines of credit. Foreign
banks pointed out the cause by the uncertain debt repayment
environment since Gitic's collapse. They were looking to
the Shenzhen Government to help resolve the impasse.

It is understood none of the foreign bank lending carried
guarantees, and only a portion enjoyed "comfort letters"
offered by Shenzhen Development Finance's parent, Shenzhen
Investment Holdings.

One of the foreign banks involved the problem is
understandable under the current circumstances and another
said support would be extended but the bank wanted to start
getting interest payments.

The Shenzhen Development Finance official said the company
was working to resolve the situation and would speed up
collection of its outstanding loans. He said the problems
should be resolved within months.


SHUM YIP INVESTMENT: Defends ability to repay foreign debt
----------------------------------------------------------
According to the South China Morning Post, Shum Yip
Investment yesterday said it was financially sound and had
no difficulties in meeting debt obligations.

The remarks followed report that a Shenzhen municipal
government controlled company was having trouble repaying
about US$20 million in foreign debts, and a rash of
inquiries made to the parent company Shum Yip Holdings
about its financial position from bankers yesterday.

An official of Shum Yip Investment said the parent company
faced less pressure than other mainland corporates from the
prevailing credit squeeze. As it was not listed, it would
not reveal its financial position, he said. The official
said Shum Yip Investment had not received any loan calls
from banks or tightening of existing credit lines, although
new lines had been cut recently.

The firm had cash on hand of about HK$1.7 billion, he said,
and it had debts of about US$210 million as of December
1997, which included about US$200 million in bonds and less
than US$10 million in short-term debt.

Combined debts to shareholder funds ratio stood at about
zero to two.


SING TAO HOLDINGS: Sing Tao buyer goes to market
------------------------------------------------
According to the South China Morning Post, the Investment
Co of China (ICC) has turned to the open market to buy
shares in Sing Tao Holdings. ICC revealed it bought 4.14
million shares in the market on Feb 1, one day before the
court rejected a bid to validate the deal.

Sing Tao, which closed at 83 cents on Feb 1, closed
yesterday at 91 cents, much lower than the offer price of
$1.20 by ICC and China Enterprise Development Fund (CEDF).

ICC and CEDF are unlikely to be able to complete their
purchases from Ms Aw until the bankruptcy hearing is
completed.


SUPER HONOUR LIMITED: Winding-up petition
-----------------------------------------
A petition for the winding up of Super Honour Limited was
presented to the High Court on Jan 19 by Lee Ka Keung of
Room 1815, Wah Kin House, Wah Fu Estate, Hong Kong, and the
said petition is directed to be heard before the court at
9:30 a.m. on Mar 31, and any creditor or contributory of
the said company desirous to support or oppose the making
of an order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by Tam
Lee Po Lin, Nina for Director of Legal Aid, 27th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong, on
payment of the regulated charges for the same.


WINSEC INVESTMENT LIMITED: Winding-up petition
----------------------------------------------
A petition for the winding up of Winsec Investment Limited
was presented to the High Court on Dec 28, 1998 by Lo Siu
Kin of Flat A, 4th Floor, 985 King's Road, Quarry Bay, Hong
Kong, and the said petition is directed to be heard before
the court at 9:30 a.m. on Mar 3, and any creditor or
contributory of the said company desirous to support or
oppose the making of an order on the said petition may
appear at the time of hearing by himself or his counsel for
that purpose, and a copy of the petition will be furnished
to any creditor or contributory of the said company
requiring the same by Tam Lee Po Lin, Nina for Director of
Legal Aid, 27th Floor, Queensway Government Offices, 66
Queensway, Hong Kong, on payment of the regulated charges
for the same.


=========
J A P A N  
=========

DAI-ICHI KANGYO BANK: To post losses for third year
---------------------------------------------------
Dai-Ichi Kangyo Bank (DKB) said Friday it will post  
unconsolidated pretax and net losses for the third
consecutive business year ending March 31 due to increased
write-offs of bad loans.

It will be the first time for a major Japanese "city" bank,
with a nationwide network of branches, to post losses for
three years in a row. (Kyodo News 12-Feb-1999)


MAZDA MOTOR: Unveils loan program for domestic dealers
------------------------------------------------------
Mazda Motor Corp. said Friday it will provide a total  of
145 billion yen in 10-year subordinated loans to its
domestic dealers as part of a plan to strengthen its
distribution network in Japan. The loan program will be
implemented by the end of March, the major Japanese
automaker said.

While Mazda has been improving its performance through
reduction of production costs and other restructuring
efforts, its domestic dealers are saddled with heavy debts
resulting from the automaker's policy of expansion followed
in the late 1980s.

At the end of January, Moody's Investors Service Inc., a
major U.S. credit-rating agency, lowered Mazda's long-term
senior unsecured debt rating to a speculative level, citing
the dealers' debt burden as one of the reasons for the
downgrade.

James Miller, president of Mazda, said the new loan program
will "permit dealers to pay down about 100 billion yen of
bank debt and change their focus from finding problems to
achieving an operating profit, selling Mazda vehicles, and
providing outstanding service to our customers."
(Kyodo News 12-Feb-1999)


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

CHUNGBUK BANK: Cho Hung accepts Chungbuk tie-up
-----------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, troubled Chungbuk Bank has yielded to pressure
from financial watchdog and submitted a merger offer to Cho
Hung Bank and Cho Hung said it would accept the offer,
although it was studying certain measures concerning
capital cuts and the streamlining of its workforce.

According to the South China Morning Post, the Financial
Supervisory Commission has asked Chungbuk to combine with a
stronger institution by the end of April, saying it could
not stand alone, given its low capital-adequacy ratio
estimated at 5.9 per cent. Chungbuk Bank had been branded
technically bankrupt and given conditionally approved
status on condition that it should come up with a viable
self-rescue program or face a merger.

Chungbuk's debt exceeds its capital by 61 billion won,
along with huge losses, a sharp decline in deposits and
more non-performing loans, the commission said.

Both papers said that the merger, if concluded, would boost
Cho Hung's assets to 62 trillion won following its earlier
consolidation with two small institutions controlled by
Hyundai Group.


HANGUK REAL ESTATE: Under workout program
-----------------------------------------
The Korean language Maeil Kyungje reports that the Hanguk
Real Estate Trust Company (a public company) will undergo a
workout program.  At the creditors' meeting held on
February 6th, 1999, the KorAm Bank was selected to be the
executor for the Hanguk Real Estate Trust Company's workout
program.


SEORYUNG INDUSTRY: Completes liquidation plan
---------------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Seoryung Industry company completed
its liquidation plan. The company's address is 8 Pokchong-
dong, Yangsan-shi and the president is Mr. Shin Chol-gyun.


SHIN DONG AH GROUP: Group head arrested on embezzlement
-------------------------------------------------------
The Korea Times reported that the chairman of Shin Dong Ah
(a.k.a. Shindong-a), Choi Soon-young, was arrested and
charged with embezzlement. Choi is accused of smuggling
$165 million out of Korea between May, 1996 and June 1997.  

A similar article in the Korea Herald stated that this
money was reportedly used to buy a luxury house in Los
Angeles and a personal jet. Choi is also suspected of
embezzling hundreds of millions of won in corporate funds
for personal use and misappropriating a huge bank loan.  

Choi is accused of working in collusion with Kim Chon-eun,
a former co-president of SDA International (a Shin Dong Ah
trading company subsidiary that was formerly known as
Shinawon) in fabricating export documents in order to
illegally transfer financing funds from four Korean
banks out of the country.

Kim was arrested last year on charges of blackmail after
the prosecution probe into SDA international began. Kim
allegedly demand 1 billion won from Choi to conceal the
illegal shipment of money out of Korea.

Newspaper reports state that this investigation may have
been delayed since last summer in order not to adversely
affect ongoing negotiations between one of Shin Dong Ah's
affiliates and a foreign investor. Korea Life Insurance
Company (a.k.a. Daehan Life) has been working on a deal
with representatives of the US based Metropolitan Life
Insurance Company.

According to the terms of an original agreement with
Metropolitan Life, the US firm was scheduled to deposit a
total of $1 billion in two stages, beginning in August 1998
in exchange for a 50 percent share in Korea Life.

However, the Korea Herald reports that this deal is now on
hold over issues associated with price and management
control. MetLife has reportedly cut its purchase price
offer to $600 million, and is suggesting Korean government
purchase of Korea Life bad debt. MetLife is now completing
an asset evaluation of Korea Life.


TAEHAN REAL ESTATE: Under workout program
-----------------------------------------
The Korean language Maeil Kyungje reports that the Taehan
Real Estate Trust Company will undergo a workout program.  
At the creditors' meeting held on February 6th, 1999, the
KorAm Bank was selected to be the executor for the Taehan
Real Estate Trust Company's workout program. The article
stated that this was the first time that a Korean public
company has become a workout target.


TAEHWA SHOPPING: Completes liquidation plan
-------------------------------------------
The Pusan District Court advertised in the Korean language
Maeil Kyungje that the Taehwa Shopping Company completed
its liquidation plan. The company's address is 193-1
Puchon-dong, Pusanjin-gu, Pusan and the president is Mr.
Kim Jae-won.


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

HOMEOWNERS SAVINGS AND LOAN: Authorities force closures
-------------------------------------------------------
According to the South China Morning Post, Philippine
central bank said yesterday Homeowners Savings and Loan
Bank was judged insolvent. With capital worth 1.73 billion
pesos and liabilities of 1.6 billion pesos, the insolvent
bank missed a January 31 deadline to infuse fresh capital.

Rural Bank of Guiguinto was also declared insolvent.


RURAL BANK OF GUIGUINTO: Authorities force closures
---------------------------------------------------
According to the South China Morning Post, Philippine
central bank said yesterday Homeowners Savings and Loan
Bank was judged insolvent. With capital worth 1.73 billion
pesos and liabilities of 1.6 billion pesos, the insolvent
bank missed a January 31 deadline to infuse fresh capital.

Rural Bank of Guiguinto was also declared insolvent.


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

SGT ASIA: DBS Land unit seeks wind-up order
-------------------------------------------
DBS Land's 39.2 per cent owned SGT Asia Pacific Pte Ltd has
filed an application with the Singapore High Court for a
winding-up order. Lim Jen Howe and John Thong How Ley of
Messrs Lim & Thong have been appointed as the liquidators
of SGT. DBS Land holds its stake through its subsidiaries
Quantum Systems Pte Ltd and Esmaco Pte Ltd. (Singapore
Business Times 12-Feb-1999)


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

ALPHATEC: Charn files petition to block ATEC plan
-------------------------------------------------
Charn Usawachoke, founder and former major shareholder of
the financially ailing Alphatec Electronics (ATEC),
yesterday filed a petition to the civil court in an attempt
to block the passage of ATEC's rehabilitation plan by
creditors.

Charn reasoned in his petition that he, as the major
shareholder, was being treated unfairly by ATEC creditors,
and who will take control of the company -- together with
two new investors.

"The acquisition price is comparatively cheap, compared to
the size of Alphatec's business," Charn said in his
statement. "I alone will be forced to be responsible for
the damage caused by such a discount." After the
rehabilitation deal is finished, all assets of ATEC would
be transferred to a new entity, Alphatec Semiconductor
Packaging. ATEC, then, would become "nothing", but a unit
from which creditors would squeeze money, he said Charn was
sacked after the company was found to have serious
financial problems by its creditors and he was not allowed
to participate in the drafting of rehabilitation terms.

He was also charged with the alleged malpractice of re-
lending at least 14 billion baht from the company to
inactive subsidiaries.

The charges were put forward by the Securities and Exchange
Commission and the creditors.

"The creditors' plan is against the Bankruptcy Act, which
stresses on enabling ailing business to continue
operations," he said.

In the ATEC case, the old company would not continue with
its operations, while the new entity would be registered in
the Cayman Islands and be 80-percent owned by Ericsson and
the American International Group.

Charn's petition yesterday delayed the approval of the ATEC
case by the bankruptcy court for a day.

Charn also demanded that he should be allowed to have some
type of interest in the new company.

A Krung Thai Bank source said the court would definitely
approve the plan as the case involves irregularity
practices of the former management. Krung Thai, ATEC's
largest creditor, and other creditors earlier approved the
restructuring plan, which would see a "cropping" of as much
as 80 percent of the total debt. (Business Day [Thailand]
12-Feb-1999)


ICC INTERNATIONAL: To make debt payment
---------------------------------------
ICC International, a listed company under Saha Group,
expects to use 1 billion baht received from issuing
debentures for development and expansion of business and
debt repayment, according to the company's Managing
Director Boonkiet Chokwatana.

The company, a leading manufacturer and distributor of
garment, cosmetic and jewelry, has appointed Merrill Lynch
as the sole financial consultant and underwriter of the
issuance. Debentures are expected to be allocated to public
this year, waiting for an appropriate market condition.

ICC has already completed its offshore debt repayment which
amounted about 1 billion baht at the end of last year. With
issuance of debenture, the company would be able to pay off
its remaining debt. (Business Day [Thailand] 12-Feb-1999)


JASMINE INTERNATIONAL: To restructure debts
-------------------------------------------
The Asian Wall Street Journal reported that the Jasmine
International Overseas Company, a unit of Jasmine
International PCL, is planning to restructure $80 million
in debts. This Thai telecommunications firm has selected
Standard Chartered (of the UK) to negotiate the
restructuring deal with creditors.


SIAM CEMENT: Tackling interest and debt burdens
-----------------------------------------------
Siam Cement Plc yesterday won government approval for the
5% cement price increases that it had already imposed. The
company had told sales agents on February 1 to raise the
price of mixed cement by 80 baht to 1,778 baht per ton, and
portland cement by 100 baht to 2,064 baht. While cement
prices are not controlled, increases require the
endorsement of the Price-fixing and Anti-monopoly
Committee.

Deputy Commerce Minister Paitoon Kaewthong noted that Siam
Cement had actually asked for increases of 300 baht a ton
for mixed cement and 400 baht for portland.

Siam Cement defended the increases. In a statement it said
that cement producers had tried in vain to win government
approval for price increases from 1989 to mid-1997.

However, Siam Cement said that during the same period it
had cut production by half due to a sharp drop in local
demand. Under the circumstances, revenues still did not
cover expenses, it said.

Siam Cement had to seek more loans for working capital,
causing its debt to snowball to 48 billion baht from 29
billion baht before the baht was floated in mid-1997.
Although the recent strengthening of the baht had eased the
company's foreign-exchange losses, it had failed to
significantly reduce huge debt and interest burdens. Costs
incurred from forex losses accounted for only 8% of the
company's total costs. (Bangkok Post 12-Feb-1999)


THAI PETROCHEMICAL: Chemical arm seeks waiver on payments
---------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, a division of Thai Petrochemical Industries (TPI)
has asked creditors to waive loan repayments this year and
extend the company's repayment period to 10 years.

The company told the Stock Exchange of Thailand it had
asked creditors to allow it to repay its estimated US$1.3
billion debt from 2000-2008, with this year to be
considered as a grace year.

The company said it is seeking creditors' approval for its
restructuring proposals and expects to accomplish this by
the end of the month.

The parent company is also struggling to appease creditors,
particularly the International Finance Corp and the
Commonwealth Bank of Australia, over its restructuring
package covering more than $3 billion in debt.

An announcement on whether TPI's 148 domestic and foreign
creditors will accept the terms of the planned debt-for-
equity swap has been delayed.

According to the scmp, TPI Polene responded sharply to --
later denied -- reports that a creditor had threatened
legal action to force the pace of debt restructuring. The
company said it would contact investment bank Warburg
Dillon Read Singapore, a division of Union Bank of
Switzerland, to clarify reports that the bank was about to
sue over delays in debt restructuring. The investment
bank's managing director said Thai papers had quoted him
out of context and no legal action was being contemplated.


THAI TELEPHONE: New chairman and debt restructuring
---------------------------------------------------
Reference is made to some news reports that Thai Telephone
& Telecommunication Public Company Limited has appointed
Mr. Viroj Nualkhair, the new chairman, to solve its debt
problem. The Company would like to clarify that TT&Ts Board
of Directors Meeting no. 2/1999 on February 8, 1999 did not
assign the specific role for Mr. Viroj Nualkhair in
appointing him as the new Chairman apart from general roles
as chairman and director of a company which are to provide
policy guidance and supervision of the management of the
company.

As for the debt restructuring, the Company has entered into
several rounds of negotiation with financial institutions
and suppliers who are the creditors of the Company. The
main concern of the creditors is the progress of concession
conversion which is the basic solution to the Company's
problems. The creditors are following progress of the issue
directly with Telephone Organization of Thailand, Ministry
of Transport of Communication and other government
agencies. In addition, the creditors have met with the Bank
of Thailand to explain the Company's problems and to
request the Bank of Thailand to help push for the debt
restructuring of the Company. (Stock Exchange of Thailand
12-Feb-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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