/raid1/www/Hosts/bankrupt/TCRAP_Public/990223.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      

      Tuesday, February 23, 1999, Vol. 2, No. 37

                    Headlines


* C H I N A   &   H O N G   K O N G *

ADVANCED DIGITAL: Winding-up petition
GERMAN KITCHEN: Jetluxe sues Tangs for $7m
GRAND ASIA DEVELOPMENT: In members' voluntary liquidation
GUANGDONG ENTERPRISES: GDE likely to seek time on debts
GUANGZHOU INTERNATIONAL: Officials reassure creditor banks

HSBC HOLDINGS: Sees 20% drop in net earnings
K GRAPHICS LIMITED: In members' voluntary liquidation
SING TAO HOLDINGS: Aw, HK Sunrise fail to consummate deal
TAK WING INVESTMENT: Tak Wing chairman sells off 25pc stake
TAK WING INVESTMENT: Tong Nai Kan to buy stake in Tak Wing


* J A P A N *

ASATSU-DK: Results announcement
CASIO COMPUTER: Results announcement
DENTINE CORP: Results announcement
FUJI ELECTRIC: Results announcement
JAPAN METALS: Results announcement

KANSAI KISEN KAISHA: Results announcement
NISSAN MOTOR: DaimlerChrysler Mulls Acquiring Nissan
NORITZ CORP: Results announcement
SATO KOGYO: Formulates rehabilitation plan
SUN WAVE: Results announcement

TOSHIBA CHEMICAL: Results announcement
TOYO ENGINEERING: Results announcement
U-SHIN LTD: Results announcement


* K O R E A *

CHUNGBUK BANK: Undergoes 100 percent capital reduction
DONG AH: Six life firms targeted for early death
DOOWON: Six life firms targeted for early death
HANA FINANCE: Bank affiliate closed
HANDUK: Six life firms targeted for early death

JOSUN: Six life firms targeted for early death
KOOKMIN: Six life firms targeted for early death
PACIFIC: Six life firms targeted for early death
POHANG IRON: Foreigners hold 40.72% stake in POSCO
SEOUL BANK: HSBC Holdings takes 70% stake in Seoul Bank

SSANGYONG GROUP: Creditor bank to swap debts for equity
TAEHAN WOOL: Starts liquidation procedure


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

METRO PACIFIC: Earnings dive 54pc
PHILIPPINE AIRLINES: Creditors consider revised proposal


* T H A I L A N D *

THAI GYPSUM: Restructuring likely to be approved
THAI MODERN: Creditor's meeting date set
THAI OIL: PTT to sell bonds to help cut Thai Oil debts
THAI PETROCHEMICAL: IFC finally agrees to TPI plan


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

ADVANCED DIGITAL: Winding-up petition
-------------------------------------
A petition for the winding up of Advanced Digital
Industrial Limited was presented to the High Court on Feb 4
by  CNW International Limited of  Room 1101, 11th Floor,
Shatin Galleria, 18-24 Shan Mei Street, Fo Tan, Shatin, New
Territories, and the said petition is directed to be heard
before the court at 11:00 am on April 7, 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 the Solicitors for the Petitioner,
George Y.C. Mok & Co., 12th Floor, Hang Seng Mongkok
Building, 677 Nathan Road, Kowloon on payment of the
regulated charges for the same.


GERMAN KITCHEN: Jetluxe sues Tangs for $7m
------------------------------------------
According to the South China Morning Post, cash-strapped
former directors of German Kitchen -- Eric Tang Yiu-hong
and Eugene Tang Yiu-chuen -- were sued by Jetluxe
Investment seeking $7.9 million of alleged unpaid debt as
well as interest and costs.

The brothers were also recently the target of legal action
launched on behalf of German Kitchen (China), claiming they
hold the sum of $137.4 million as constructive trustees on
behalf of the firm.

Bankruptcy petitions have also been filed against them.


GRAND ASIA DEVELOPMENT: In members' voluntary liquidation
---------------------------------------------------------
The creditors of Grand Asia Development Limited, which is
being voluntarily wound up, are required on or before Mar
19 to send in their names, addresses and particulars of
their debts or claims to the undersigned or Mr M P C Ho,
the Joint and Several Liquidator(s) of the said company,
and if so required by notice in writing from the
liquidator(s), are personally or by their solicitors to
come in and prove their debts or claims at such time and
place specified in such notice, or in default thereof, they
will be excluded from the benefit of any distribution
before such debts are proved. Liquidators:  J G W Blauuw
   
22/F., Prince's Building, Central, Hong Kong.


GUANGDONG ENTERPRISES: GDE likely to seek time on debts
-------------------------------------------------------
According to the Hong Kong Standard, Guangdong Enterprises
(GDE) is more likely to ask creditors to extend debt
maturities than cancel debt in a restructuring proposal, a
source close to the talks said.

A meeting with creditors has been scheduled for March 1 but
a source close to the talks said that the Guangdong
government and GDE's financial adviser Goldman Sachs were
far from being able to present a debt restructuring
proposal but need more time and further dialogues with
banks.

The source said there will be an indication of how big the
problem is and an indication of what the restructured
entity is going to look like.

GDE announced unaudited liabilities of US$3.28 billion last
month, including US$333 million worth of outstanding debt
at Macau subsidiary Nam Yue (Group).

The source said banks may be asked to take securities to
lieu of their debt or accept lower interest payments but
there was not enough information available about GDE's
cashflow to decide on a debt plan.


GUANGZHOU INTERNATIONAL: Officials reassure creditor banks
----------------------------------------------------------
According to the South China Morning Post, sources said
Gzitic had invited creditor banks of its wholly owned
Guangzhou Finance subsidiary to a meeting, to be held on or
before March 10, to explain the Guangzhou municipal
government's stance and had also sent documents to
creditors reaffirming the government's intention to support
Gzitic.

Bankers welcomed the moves, saying they were an improvement
over previous reaction to requests for information and
dialogue and reflected greater sincerity.

Members of the US$30 million syndicated loan that had filed
a winding up petition received documents from Gzitic
stating the Guangzhou municipal government's intention to
support the firm. The documents also called on Guangzhou
Finance's creditors not to take legal action.

The positive signals came only days after the Laodong Daily
quoted Guangzhou vice-mayor Shen Bainian as reiterating
that the Guangzhou municiapal government was prepared to
let Gzitic go under if its liabilities grossly outstripped
its assets. A source close to the Guangzhou government said
yesterday the report had merely re-stated Mr Shen's earlier
remarks and he had not spoken to the paper on the issue.
The source said the government remained committed to the
restructuring of Gzitic to keep it afloat as Gzitic
officials had told its creditor banks last week.

Gzitic's Hong Kong finance arm -- bankrupt Guangzhou
Finance -- has filed a High Court writ seeking $10.6
million from Jenco Trading for breaching an agreement for
opening letters of credit and trust receipts dated
August 1, 1997. It is claimed Jenco failed to make payment
under the terms and conditions of the deal.

According to the Hong Kong Standard, an official involved
in the restructuring of Gzitic denied that the city's vice-
mayor Shen Bianian had told Shanghai's Labour Daily
newspaper that Gzitic would be allowed to go bankrupt if an
investigation showed its debts largely exceeded assets. The
Hong Kong Economic Journal quoted official Chen Jinde as
saying Guangzhou's city government is helping Gzitic to
find an international auditing firm to facilitate an asset
and debt restructuring of Gzitic.


HSBC HOLDINGS: Sees 20% drop in net earnings
--------------------------------------------
HSBC Holdings has posted group net earnings for 1998 of
US$4.3 billion, down about 20 per cent from US$5.4 billion
a year earlier. The decline was lower than most
projections.

Earnings per share was down 22 per cent to US$1.60. Still,
the company has declared a second interim dividend of 55.5
US cents, raising the total distribution for the year to
92.5 US cents.

It also unveiled a plan to list its shares on the New York
Stock Exchange by the second half of this year. (Singapore
Business Times 22-Feb-1999)


K GRAPHICS LIMITED: In members' voluntary liquidation
-----------------------------------------------------
The creditors of K Graphics Limited, which is being
voluntarily wound up, are required on or before Mar 19 to
send in their names, addresses and particulars of their
debts or claims to the Liquidator(s) of the said company,
and if so required by notice in writing from the
liquidator(s), are personally or by their solicitors to
come in and prove their debts or claims at such time and
place specified in such notice, or in default thereof, they
will be excluded from the benefit of any distribution
before such debts are proved. Liquidators: J G W Blaauw,
23/F., Sunning Plaza, 10 Hysan Avenue, Causeway Bay, Hong
Kong.


SING TAO HOLDINGS: Aw, HK Sunrise fail to consummate deal
---------------------------------------------------------
According to the Hong Kong Standard, Sing Tao Holdings
majority shareholder Sally Aw Sian and Hong Kong Sunrise
Holdings failed to consummate a share sale and purchase
agreement on Ms Aw's stake in Sing Tao on Feb 15, a date
agreed upon by the two parties for completing the deal.

Hong Kong Sunrise said it remained interested in Sing Tao
and was in advanced stages of discussions with various
parties regarding plans for another method of investment in
the company.

The purchaser's solicitor wrote to the Interim Receiver on
Feb 10 to agree to an extension of the completion date for
the share sale agreement. In the reply, it is said that the
Interim Receiver had written to the court for redirections
and the Interim Receiver had no obligation to reply to the
purchaser by any set date. It was also said that in order
to proceed with the completion of the share sale agreement,
cooperation of the Interim Receiver was required and in
case the Interim Receiver did not agree to extend the
completion date, the purchaser may proceed to complete the
share sale agreement as far as practicable or rescind the
agreement without prejudice to any other remedies it may
have.

Hong Kong Sunrise is now seeking legal advice on the
matter.


TAK WING INVESTMENT: Tak Wing chairman sells off 25pc stake
-----------------------------------------------------------
According to the South China Morning Post, troubled
property investment and construction firm Tak Wing
Investment (Holdings) said its chairman will sell 60
million shares in the company at 20 cents per share to Gold
Blue Group, a property investment firm.

Mr Chung -- who will hold a 21.5 per cent interest in Tak
Wing after the deal is concluded -- also agreed to purchase
from Tak Wing its property management arm for an
undisclosed sum.

A winding-up petition was filed by Standard Chartered Bank
against the firm this month because of unpaid debts
totalling $82 million.


TAK WING INVESTMENT: Tong Nai Kan to buy stake in Tak Wing
----------------------------------------------------------
According to the Hong Kong Standard, Tak Wing Investment
(Holdings) Ltd said its chairman and controlling
shareholder Chung Chun-keung has agreed to sell a 25.4 per
cent stake in the company at $0.20 per share to independent
property developer Tong Nai Kan. It said Chung will sell
60 million shares for a total consideration of $12 million
in cash. The price represents a premium of 141 per cent
over the closing price of the company's shares on
February 10.


=========
J A P A N  
=========

ASATSU-DK: Results announcement
-------------------------------
Shares of Asatsu-DK Inc. fell 55 yen to 2,340. The
advertising agency Friday reported a parent net loss of
5.703 billion yen ($47 million) for the year ended Dec. 31,
compared with a profit of 1.23 billion yen a year ago.
That's close to the 5.7 billion yen loss forecast by Toyo
Keizai Inc., a financial information company. (Bloomberg
22-Feb-1999)


CASIO COMPUTER: Results announcement
------------------------------------
Shares of Casio Computer Co. fell 4 yen to 766. The digital
watch and calculator maker Friday revised its group net
forecast for the year ending in March to a loss of 4
billion yen from 7.5 billion yen. That's also worse than
Toyo Keizai's forecast of a 7.5 billion yen loss.
(Bloomberg 22-Feb-1999)


DENTINE CORP: Results announcement
----------------------------------
Shares of Dentine Corp. rose 5 yen to 119. The maker of
building materials Friday reported that group net loss
for the year ended December widened to 6.04 billion yen
from a 1.3 billion yen loss a year ago. That's worse than
Toyo Keizai's estimate of a 5.9 billion yen loss.
(Bloomberg 22-Feb-1999)


FUJI ELECTRIC: Results announcement
-----------------------------------
Shares of Fuji Electric Co. fell 6 yen to 237. The
maker of industrial motors and other electric machinery
Friday said it will post a larger-than-expected group net
loss of 18 billion yen for the year through March, compared
with an earlier forecast of a 2.5 billion yen loss. It will
also take measures to cut costs, including regrouping its
business divisions into financially accountable in-house
companies in April and spinning off its industrial motor
division in July. (Bloomberg 22-Feb-1999)
    

JAPAN METALS: Results announcement
----------------------------------
Shares of Japan Metals & Chemicals Co. rose 4 yen to 192.
The ferroalloy maker Friday reported that parent net loss
widened for the year ended Dec. 31 to 2.73 billion yen from
418 billion yen a year ago. That's close to Toyo Keizai's
forecast of a 2.7 billion yen loss. (Bloomberg 22-Feb-1999)


KANSAI KISEN KAISHA: Results announcement
-----------------------------------------
Shares of Kansai Kisen Kaisha rose 6 yen to 69. The ship
operator Friday reported that its parent net loss for the
year ended December widened to 3.65 billion yen from a loss
of 572 million yen a year earlier. That's close to Toyo
Keizai's forecast of a 3.6 billion yen loss.
(Bloomberg 22-Feb-1999)


NISSAN MOTOR: DaimlerChrysler Mulls Acquiring Nissan
----------------------------------------------------
DaimlerChrysler will decide whether to acquire a
controlling stake in Japan's ailing automaker Nissan after
three to four months of "careful analysis", company
chairman Juergen Schrempp said here at the weekend.

Addressing a business luncheon here, Schrempp said
DaimlerChrysler aimed to have 20 to 25 percent of its
global sales in Asia and in doing so faced a choice between
"an evolutionary process over 10 years" or "(grabbing) an
opportunity", referring to Nissan.

Saddled with poor sales and debts estimated at between $22
billion and 37 billion, Nissan, Japan's second largest
automaker behind Toyota, is interested in an alliance with
a foreign rival.

Schrempp told the Executives' Club of Chicago that the
price for Nissan -- with a market capitalization valued at
around eight billion dollars -- "is not too high." (Agence
France-Presse and Business Day [Thailand] 22-Feb-1999)


NORITZ CORP: Results announcement
---------------------------------
Shares of Noritz Corp. fell 2 yen to 898. The maker of
electrical appliances including water heaters Friday
reported a group net loss of 970 million yen for the year
ended December, compared with a net profit of 387 million
yen a year earlier. That's worse than Toyo Keizai's
forecast of a 530 million yen loss. (Bloomberg 22-Feb-1999)


SATO KOGYO: Formulates rehabilitation plan
------------------------------------------
Sato Kogyo Co. said Monday that it has drafted a business
rehabilitation program centering on a debt waiver of about
120 billion yen by its major creditor banks.

With forgiven repayments and profits to be posted from now
on, the financially troubled general contractor will
eliminate a loss of about 128 billion yen from its balance
sheet in fiscal 1999, which ends March 2000, it said.
(Kyodo News 22-Feb-1999)


SUN WAVE: Results announcement
------------------------------
Shares of Sun Wave Corp. fell 2 yen to 253. The company
Friday widened its group net loss forecast for the year
ending in March to 5.5 billion yen from 2.85 billion yen.
That's worse than Toyo Keizai's forecast of a 4 billion yen
loss. (Bloomberg 22-Feb-1999)


TOSHIBA CHEMICAL: Results announcement
--------------------------------------
Shares of Toshiba Chemical Corp. fell 11 yen to 225. The
company Friday widened its group net loss forecast for
the year ending in March to 3.9 billion yen from 1.99
billion yen. That's worse than Toyo Keizai's forecast of a
2 billion yen loss. (Bloomberg 22-Feb-1999)


TOYO ENGINEERING: Results announcement
--------------------------------------
Shares of Toyo Engineering Corp. rose 1 yen to 121. The
designer of fertilizer, petrochemical, and other industrial
plants may post a net loss of more than 10 billion yen for
the year through March as it writes off unrecoverable
credits to customers in the Middle East, the Nihon Keizai
newspaper reported Saturday. (Bloomberg 22-Feb-1999)


U-SHIN LTD: Results announcement
--------------------------------
Shares of U-Shin Ltd. fell 14 yen to 330. The electric
equipment parts maker Friday reported a group net loss of
1.25 billion yen for the year ended Dec. 31, down from a
profit of 368 million yen a year ago. That's worse than
Toyo Keizai's forecast of a 900 million yen loss.
(Bloomberg 22-Feb-1999)


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

CHUNGBUK BANK: Undergoes 100 percent capital reduction
------------------------------------------------------
The Asian Wall Street Journal reported that the Financial
Supervisory Commission (FSC) will reduce the Chungbuk
Bank's capital by 100 percent in anticipation of an
expected merger with the Cho Hung Bank. Following this
25 billion won capital reduction, the government is
expected to provide financial support to recapitalize the
bank to ease the merger process.

The article also state that the Korean Stock exchange will
suspend trading of Chungbuk stock due to this capital
reduction order from the FSC.  

Chungbuk, with headquarters in Chongju, North Chongchong
Province, suffered a net loss of 242.6 billion won last
year. Furthermore, its capital adequacy ratio calculated
using the standards of the Bank for International
Settlements (BIS) stood at minus 3.4 percent last year, far
below the minimum required positive 8 percent level.

The bank's total debt has been reported to exceed 60.9
billion won, and FSC officials have stated that Chungbuk is
unable to properly function as a commercial bank due to its
poor financial condition.

Cho Hung is already involved in a three way merger with
Hyundai affiliated Hyundai International Merchant Bank, and
the Kangwon Bank, another weak bank in the same region as
Chungbuk's headquarters.  


DONG AH: Six life firms targeted for early death
------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, asset evaluation has been carried out on six
debt-ridden life assurance firms -- Dong Ah, Pacific,
Kookmin, Handuk, Josun and Doowon -- which have promised to
improve their financial status by attracting foreign funds
but their plans have been unsuccessful. Officials of the
Financial Supervisory Commission (FSC) indicated the six
firms could be sold to foreigners.


DOOWON: Six life firms targeted for early death
-----------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, asset evaluation has been carried out on six
debt-ridden life assurance firms -- Dong Ah, Pacific,
Kookmin, Handuk, Josun and Doowon -- which have promised to
improve their financial status by attracting foreign funds
but their plans have been unsuccessful. Officials of the
Financial Supervisory Commission (FSC) indicated the six
firms could be sold to foreigners.


HANA FINANCE: Bank affiliate closed
-----------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Hana Finance Company, an affiliate of
Hana Bank, will be disbanded.


HANDUK: Six life firms targeted for early death
-------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, asset evaluation has been carried out on six
debt-ridden life assurance firms -- Dong Ah, Pacific,
Kookmin, Handuk, Josun and Doowon -- which have promised to
improve their financial status by attracting foreign funds
but their plans have been unsuccessful. Officials of the
Financial Supervisory Commission (FSC) indicated the six
firms could be sold to foreigners.


JOSUN: Six life firms targeted for early death
----------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, asset evaluation has been carried out on six
debt-ridden life assurance firms -- Dong Ah, Pacific,
Kookmin, Handuk, Josun and Doowon -- which have promised to
improve their financial status by attracting foreign funds
but their plans have been unsuccessful. Officials of the
Financial Supervisory Commission (FSC) indicated the six
firms could be sold to foreigners.


KOOKMIN: Six life firms targeted for early death
------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, asset evaluation has been carried out on six
debt-ridden life assurance firms -- Dong Ah, Pacific,
Kookmin, Handuk, Josun and Doowon -- which have promised to
improve their financial status by attracting foreign funds
but their plans have been unsuccessful. Officials of the
Financial Supervisory Commission (FSC) indicated the six
firms could be sold to foreigners.


PACIFIC: Six life firms targeted for early death
------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, asset evaluation has been carried out on six
debt-ridden life assurance firms -- Dong Ah, Pacific,
Kookmin, Handuk, Josun and Doowon -- which have promised to
improve their financial status by attracting foreign funds
but their plans have been unsuccessful. Officials of the
Financial Supervisory Commission (FSC) indicated the six
firms could be sold to foreigners.


POHANG IRON: Foreigners hold 40.72% stake in POSCO
--------------------------------------------------
Foreign investors hold a 40.72 percent stake in Pohang Iron
and Steel Co., the company said yesterday. The stake
includes 38.05 percent directly purchased by investors and
2.67 percent purchased through a foreigners-only fund,
according to POSCO.

Templeton fund accounts for 3.58 percent, followed by
Morgan Stanley at 1.67 percent, Emerging Growth Co. at 1.51
percent, Merrill Lynch at 0.86 percent and Australia's
Schroder Fund at 0.79 percent.

Meanwhile, Korea's top five groups together account for
5.48 percent, including 2.27 percent for Samsung and 2
percent for Hyundai.

The Korea Development Bank, the major shareholder, makes up
20.98 percent and Industrial Bank of Korea 6.3 percent.
(Korea Herald 23-Feb-1999)


SEOUL BANK: HSBC Holdings takes 70% stake in Seoul Bank
-------------------------------------------------------
The government yesterday agreed to sell the financially-
troubled Seoul Bank to British banking giant, HSBC Holdings
Plc, capping a year-long effort to restructure the debt-
ridden banking sector.

It marks the second time that the government has agreed to
sell a major commercial bank to a foreign financial
institution following the signing of a memorandum of
understanding (MOU) between Korea First Bank and a U.S.
consortium, led by Newbridge Capital Dec. 31.

Under the deal, HSBC Holdings will acquire an initial 70-
percent stake in Seoul Bank for $700 million and will make
an up-front facilitation payment of $200 million for the
takeover, according to a release by the Financial
Supervisory Commission (FSC) yesterday.

The Korean government will retain a 30-percent stake in the
bank with an additional warrants equivalent to 19 percent
of the shares outstanding at the closing date, which the
FSC expects may come as early as late May. "In effect, the
government will retain a 49-percent interest, and as a
result, will be able to recoup a substantial portion of the
cost of the support package," the release said.

Seoul Bank had 31.85 trillion won in total assets and 22.27
trillion won in total deposits against 16.3 trillion won in
total lending, according to the bank. It suffered a net
loss of 2.24 trillion won last year with its loan-loss
reserves amounting to 1.46 trillion won as of the end of
1998.

"The deal will speed up our rehabilitation efforts and we
are confident that we will be reborn as a new profitable
bank in the near future," said a Seoul Bank spokesman.
(Korea Herald  23-Feb-1999)


SSANGYONG GROUP: Creditor bank to swap debts for equity
-------------------------------------------------------
The Korea Herald reported that the main creditor of the
Ssangyong Group plans to propose swapping its loans for
equity. The Cho Hung Bank, Ssangyong's main creditor, will
submit a plan at a creditor's meeting next week to turn
part of two affiliates bank debts totaling 750 billion won
into common stock. The two Ssangyong affiliates involved,
and their respective debts to be covered to equity are:

Ssangyong Engineering & Construction, 650 billion won, and
Namkwang Construction, 100 billion won.

These two affiliated together reportedly owe 1.42 trillion
won in loans to banks.

The article stated that if this plan is approved, it will
be the largest amount of outstanding loans switched into
stocks for any company in the country. Last November, when
these Ssangyong affiliates applied for their workout
programs, newspaper stories said that this move would be
essentially a bail-out in the form of debt rescheduling and
debt write-offs.  


TAEHAN WOOL: Starts liquidation procedure
-----------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Taehan company was allowed to starts its
liquidation procedure by the Suwon District Court.


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

METRO PACIFIC: Earnings dive 54pc
---------------------------------
First Pacific's flagship Philippine arm, Metro Pacific, saw
net income fall 54 per cent last year to 329 million pesos
(about HK$62.51 million) as provisions at its landmark
Manila property venture Fort Bonifacio ate into profits.
Operating profits, before financing charges, were up 62 per
cent to 2.8 billion pesos from 1.75 billion in 1997.

However, net expenses grew to 851 million pesos, reflecting
provisions for possible lot returns or settlements with lot
buyers at Fort Bonifacio. In addition, Metro Pacific also
made provisions for restructuring and bad debts in its
shipping, packaging and bottled water businesses.

The company made progress reducing its debt by de-
consolidating the balance sheet of its telecoms subsidiary
Smart Communications before the sale of part of its
interest to Japan's Nippon Telegraph and Telephone and by
raising 14 million pesos in new equity.

At the end of last year the company's debt-to-equity ratio
stood at 71 per cent, down from a massive 145 per cent at
the end of 1997. (South China Morning Post 20-Feb-1999)


PHILIPPINE AIRLINES: Creditors consider revised proposal
--------------------------------------------------------
According to the South China Morning Post, PAL's chief
adviser Peter Foster said that a revised rehabilitation
plan for PAL was received favorably by its major foreign
creditors at a meeting this week in Washington. Meeting
with PAL officials were creditors from a consortium of
European financial institutions, owed US$1.2 billion, and
the US Export-Import Bank, owed $340 million.

According to the Hong Kong Standard, local creditor banks
of PAL have filed a protest with the Securities and
Exchange Commission, claiming that foreign creditors were
getting preferential treatment. Foreign creditors, which
had threatened to seize PAL aircraft if no goodwill payment
was made, were paid some US$39 million as token payment to
secure support for a rehabilitation plan, according to the
banks, who lent $242 million.


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

THAI GYPSUM: Restructuring likely to be approved
------------------------------------------------
Thai Gypsum Products Public Company Limited has proceeded
with restructuring debts and reorganization of its business
to the satisfactory finalization with most creditors.

The Thai Farmers Bank Public Company Limited, a significant
Creditor, has co-ordinated with the Company in filing a
request with the Civil Court of Bangkok on February 18,
1999 Case No. Lor For (B.R. 1/2542) for reorganization.

Thai Gypsum Products Public Company Limited empowered Mr.
Winid  Youngsurakan as the first Requisitionist. Thai
Farmers Bank Public Company Limited empowered Mr.
Sitthiporn Mahasawadi as the second Requisitionist to file
the request stating there are reasonable grounds and
prospect to reorganize the business in the introduction of
a Foreign Investor to be a Strategic Partner.

Moreover, the Creditors, namely Banks and Financial
Institutes approved the principle of repayment of debts as
per business reorganization plan. All agreed that the
company's business is not in a state of bankruptcy but is
able to revive and generate the income to repay the debts
to Creditors should the export can be achieved according to
the strategy of the Strategic Partner of the Company.

In the request the Thai Farmers Bank Public Company Limited
the second Requisitionist also approved in the appointment
of Mr. Krisada Kampanatsanyakorn, Managing Director of Thai
Gypsum Products Public Company Limited as Plan Preparer
under the assistance of Arthur Andersen Business Advisory
Limited who specifically attend to this reorganization plan
to the benefit of all concerning parties and guarantee
the successful outcome of the business reorganization plan.
(Stock Exchange of Thailand 19-Feb-1999)


THAI MODERN: Creditor's meeting date set
----------------------------------------               
Thai Modern Plastic Industry Public Company Limited the
official receiver has set a creditors meeting on March 16,
1999 at  9.30 a.m. at the Business Reorganization Office  
office the rebabilitation plan.


THAI OIL: PTT to sell bonds to help cut Thai Oil debts
------------------------------------------------------
The Petroleum Authority of Thailand (PTT) plans to sell
$350 million worth of treasury bonds in Japan in April to
help ease the huge debt burden of its refining arm, Thai
Oil, PTT Deputy Governor Chitrapong Kwangsukstith said.
The bonds will have a 10-year maturity with an annual
coupon rate of 3 percent and would be sold immediately.

The bonds were expected to be positively received by
investors because they would be jointly guaranteed by
Thailand's Foreign Ministry and Japan's Ministry of
International Trade and Industry (MITI).

"It is the best alternative to mobilize funds at present as
interest rates have fallen and the market still demands
debentures with a long-term maturity," he said.

The funds generated from the planned sale would be used to
help its cash strapped subsidiaries, especially the
country's largest refinery, Thai Oil, said Chitrapong.

Of the total raised, $200 million will be passed on to Thai
Oil, $40 million to Thai Oil's subsidiary, Thai Paraxylene,
$50 million to Thai Olefins, and $60 million to Aromatics
(Thailand).

PTT earlier planned to reduce the debt obligation of Thai
Oil from $1.9 billion baht to $1 billion either through
asking its creditors to cut their lending rates or by
converting part of the debt to equity. After that, PTT will
inject fresh funds into Thai Oil, which will have to
increase its capital to about six billion baht from only 20
million baht now.

PTT owns 49 percent of Thai Oil. Other shareholders include
the Chowkwanyuan family, Royal Dutch Shell and Caltex.

Thai Oil announced a moratorium on its debt in November
last year as the decline of oil prices made it unable to
generate adequate profits to pay off its debt.

The Government is mulling over a plan to sell Thai Oil and
some of its financially ailing subsidiaries to foreign
investors. So far, potential partners include Coastal,
Royal Dutch Shell and Chevron.

The Government also owns about 80 percent of the smallest
refinery, Bangchak Petroleum, and is looking to offload its
interest in that company as well. The plan has, so far,
been blocked by Bangchak's Managing Director Sonphon
Suphapong. (Business Day [Thailand] 22-Feb-1999)


THAI PETROCHEMICAL: IFC finally agrees to TPI plan
--------------------------------------------------
The long-awaited debt restructuring plan for Thai
Petrochemical Industry (TPI) is likely to come to its
conclusion after its major creditor, the International
Finance Corporation (IFC) finally agreed to support the
plan.

IFC, an investment arm of the World Bank (WB) which holds
around 15 percent of TPI's debt, announced that it had
reached agreement with TPI on the company's $3.2 billion
debt restructuring. The support from IFC will allow TPI to
implement its plan.

Following a meeting of TPI's creditors in December, IFC and
Ex-Im Bank had continuing concern with some elements of the
restructuring plan and were unable to support it. Since
then, its financial advisors, the Chase Manhattan Bank, Ex-
Im Bank and IFC have lengthy discussions to reach
agreement, the statement said. Ex-Im Bank holds around 3.5
percent of TPI's debt.

TPI recently reported to the SET that its plan would be
delayed because two of the 14 TPI's largest creditors, IFC
and the Commonwealth Bank of Australia, voted against it.
(Business Day [Thailand] 22-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

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