---

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      

      Wednesday, February 24, 1999, Vol. 2, No. 38

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS: Albatronics shares offloaded
CENTRUM LIMITED: In members' voluntary liquidation
CITIMEX DEVELOPMENT LTD: In members' voluntary liquidation
FUJIAN ENTERPRISES: To meet with creditor banks
GROUPWIN COMPANY LIMITED: In members' voluntary liquidation

GZITIC HUALING: Business as usual says unit of Gzitic
HUA RONG: To meet with creditor banks
MASTER WORLD (HK) LIMITED: Winding-up petition
RACEFIRST LIMITED: In members' voluntary liquidation
SING TAO: Aw faces open hearing in bankruptcy battle

YEARPLUS COMPANY LIMITED: In members' voluntary liquidation


* J A P A N *

KOMATSU: Results announcement
LONG TERM CREDIT: Gov't hopes for buyer within three months
NIPPON CREDIT BANK: BOJ sees NCB investment becoming loss
SATO KOGYO: Asks for loan forgiveness from 12 banks
SEIYU: To sell shares to offset Y88bn charge

TOYO CONSTRUCTION: Results announcement


* K O R E A *

HANGUK METAL INDUSTRY: Completes creditor reconciliation  
KOREA DEVELOPMENT BANK: Incurs deficit of $4 bil. last year
LG METALS: Results announcement
SEOULBANK: Seoul in deal on sale of top asset


* M A L A Y S I A *

IDRIS HYDRAULIC: Idris seeks debt panel's help
MALAYSIAN AIRLINES: MAS denies top-level reshuffle
MBF NORTHERN: KPMG appointed special administrator


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

PILIPINO TELEPHONE: PLDT pledges to recapitalise Piltel
WELLEX: Needs to refund shareholders of defunct company


* T H A I L A N D *

SIAM TYRE: To delist securities from SET
THAI OIL: Seeks extension negotiating on $1.9bn total debts
THAI PETROCHEMICAL: Obstacle to TPI debt deal removed
UNITED MOTOR WORKS: Results announcement


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

ALBATRONICS: Albatronics shares offloaded
-----------------------------------------
According to the South China Morning Post, electronics
group Albatronics (Far East) said a financial institution
had on Friday and yesterday sold in the market 9.2 million
shares pledged by its managing director, Nakahara Fukumori.
The company said the shares were about 2.3 per cent of
issued share capital. Mr Fukumori earlier revealed he had
pledged 39.01 million shares or about 9.75 per cent of the
company to a financial institution.


CENTRUM LIMITED: In members' voluntary liquidation
--------------------------------------------------
The creditors of Centrum Limited, which is being
voluntarily wound up, are required on or before Mar 31 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. Liquidator: Betty Bik-Yuen
Yeung.


CITIMEX DEVELOPMENT LTD: In members' voluntary liquidation
----------------------------------------------------------
The creditors of Citimex Development Limited, which is
being voluntarily wound up, are required on or before Mar
31 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. Liquidator: Betty Bik-Yuen
Yeung.


FUJIAN ENTERPRISES: To meet with creditor banks
-----------------------------------------------
According to the South China Morning Post, Fujian
Enterprises (Holdings) and Hua Rong (Holdings), the
respective Hong Kong window arms of the Fujian provincial
government and the Fuzhou municipal government, will meet
creditor banks next month. Bankers had already asked that
Fuzhou government officials attend the meeting.

Hua Rong earlier told bankers it had assets of about $400
million to $500 million, against debts of about $600
million. It said the Fuzhou government would inject assets
into the firm as part of a debt and restructuring plan to
keep the firm afloat.


GROUPWIN COMPANY LIMITED: In members' voluntary liquidation
-----------------------------------------------------------
The creditors of Groupwin Company Limited, which is being
voluntarily wound up, are required on or before Mar 31 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. Liquidator: Betty Bik-Yuen
Yeung.


GZITIC HUALING: Business as usual says unit of Gzitic
-----------------------------------------------------
According to the South China Morning Post, red chip Gzitic
Hualing Holdings said its business is substantially normal
despite the threat of liquidation hanging over its single
largest shareholder, Guangzhou Finance.

Gzitic Hualing's chairman Chen Xiaoshi confirmed that
Guangzhou Finance had pledged its entire 50.98 per cent
stake in the firm as security on a loan. The loan was not
the US$30 million syndicated credit that became the subject
for the petition for winding up to be heard on April 14.

Gzitic, which holds 6.91 per cent of Gzitic Hualings'
shares, is arranging meetings with its creditor banks for
around March 10 and to be attended by Gzitic's owner, the
Guangzhou municipal government.

Guangdong Enterprises (Holdings) (GDE) will be leading a
series of meetings between creditor banks and mainland
corporates on debt-repayment issues next month. GDE will
meet its creditor banks on Monday, followed by its Macau
investment arm, Nam Yue (Group). The banks will be briefed
on an asset and debt-restructuring plan and updated
financial data on the two firms.


HUA RONG: To meet with creditor banks
-------------------------------------
According to the South China Morning Post, Fujian
Enterprises (Holdings) and Hua Rong (Holdings), the
respective Hong Kong window arms of the Fujian provincial
government and the Fuzhou municipal government, will meet
creditor banks next month. Bankers had already asked that
Fuzhou government officials attend the meeting.

Hua Rong earlier told bankers it had assets of about $400
million to $500 million, against debts of about $600
million. It said the Fuzhou government would inject assets
into the firm as part of a debt and restructuring plan to
keep the firm afloat.


MASTER WORLD (HK) LIMITED: Winding-up petition
----------------------------------------------
A petition for the winding up of Master World (Hk) Limited
was presented to the High Court on Jan 13 by Lam Chiu Wa of
Flat H, 11th Floor, Block 9, Richland Gardens, Kowloon Bay,
Kowloon, and the said petition is directed to be heard
before the court at 9:30 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.


RACEFIRST LIMITED: In members' voluntary liquidation
----------------------------------------------------
The creditors of Racefirst Limited, which is being
voluntarily wound up, are required on or before Mar 31 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. Liquidator: Betty Bik-Yuen
Yeung.


SING TAO: Aw faces open hearing in bankruptcy battle
----------------------------------------------------
Newspaper proprietor Sally Aw Sian will fight a bid by
creditors to have her declared insolvent on Thursday.

The Sing Tao Holdings chairman faces bankruptcy if she
fails to prove to a judge that she can meet her financial
obligations.

A bankruptcy petition was filed on January 8 by a company
linked to Hong Kong Tobacco chief Ho Ying-chie. Mr Ho has
sued Ms Aw for $274 million in unpaid debts.

Lawyers for both sides appeared before Mrs Justice Doreen
Le Pichon at the Court of First Instance yesterday to
obtain directions prior to the hearing.

Under Hong Kong bankruptcy laws, the hearing must be
conducted in open court. Proceedings so far have been held
behind closed doors.

This included a bid to have validated a deal involving the
sale of a 23 per cent stake in Sing Tao. Mrs Justice Le
Pichon vetoed the deal amid fears it provided "no immediate
benefit" to unsecured creditors.

The proposed $115.81 million sale to Hong Kong Sunrise
Holdings, a wholly owned subsidiary of China Enterprise
Development Fund, was thrown out of court.

The judge ruled another proposal -- an offer by Lazard Asia
Investment Management to buy Ms Aw's entire Sing Tao stake
for $262.5 million -- was preferable and still on the
table. (South China Morning Post 23-Feb-1999)


YEARPLUS COMPANY LIMITED: In members' voluntary liquidation
-----------------------------------------------------------
The creditors of Yearplus Company Limited, which is being
voluntarily wound up, are required on or before Mar 31 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. Liquidator: Betty Bik-Yuen
Yeung.


=========
J A P A N  
=========

KOMATSU: Results announcement
-----------------------------
Shares of Komatsu Ltd. rose 16 yen to 592 on expectations
that the worst may be over for the Japanese construction
machinery maker. Komatsu yesterday revised its group net
forecast for the year ending in March to a loss of 13
billion yen from a profit of 1 billion yen. That's worse
than Toyo Keizai's forecast of 1 billion yen profit. The
report was prepared according to U.S. accounting
principles. Also, the company's "A3" debt rating outlook
was cut to "negative" today by Moody's Investors Service.
(Bloomberg 23-Feb-1999)


LONG TERM CREDIT: Gov't hopes for buyer within three months
-----------------------------------------------------------
Hakuo Yanagisawa, state minister in charge of financial
reconstruction, said Tuesday he hopes to find a financial
institution to buy the nationalized Long-Term Credit Bank
of Japan (LTCB) within three months.

He made the comments after the Financial Reconstruction
Commission, headed by Yanagisawa, announced Friday that the
agency will transfer 5,036.2 billion yen worth of bad loans
and latent losses held by LTCB to a Japanese version of
Resolution Trust Corp. of the United States to be created
in April for liquidation.

The transfer, by substantially improving the bank's
financial standing, is expected to help the commission to
find a buyer for LTCB.

Yanagisawa said the commission concluded a contract with
Goldman Sachs and Co. on Feb. 1 to have the U.S. investment
bank serve as an intermediary in the search for a buyer.

Under the deal, Goldman Sachs will gain larger rewards if
LTCB's purchaser is found within three months, he said.

Last October, the government declared LTCB insolvent
because of its huge problem loans, and put the bank under
temporary state control. (Kyodo News 22-Feb-1999)


NIPPON CREDIT BANK: BOJ sees NCB investment becoming loss
---------------------------------------------------------
The Bank of Japan's equity investment of 80 billion yen in
failed Nippon Credit Bank is expected to end up with losses
on its balance sheets, BOJ Governor Masaru Hayami said
Monday.

Hayami made the comment before the House of Councillors
Budget Committee.

The BOJ joined private financial institutions in the summer
of 1997 in injecting a total of 290 billion yen in fresh
capital into NCB under a bailout orchestrated by the
Finance Ministry. NCB was placed under state control in
December last year due to its insolvency.
(Jiji Press English News 22-Feb-1999)


SATO KOGYO: Asks for loan forgiveness from 12 banks
---------------------------------------------------
Ailing general contractor Sato Kogyo Co. said Monday it has
asked Dai-Ichi Kangyo Bank, Hokuriku Bank and 10 other
creditor banks for loan forgiveness totaling some 120
billion yen.

Dai-Ichi Kangyo and Hokuriku were asked to shoulder some 70
pct of the total.

If the loans are written off, Sato Kogyo, based in Toyama,
central Japan, will dispose of about 128 billion yen in
losses in the next business year ending in March 2000,
company officials said.

Of the total losses, 35 billion yen are from shutting down
subsidiaries, and 4 billion yen from real estate sales.

As part of a business rehabilitation scheme, Sato Kogyo
will reduce its payroll by 500 in the next business year
and an additional 300 in the following year to March 2001.

Of the company's 64 subsidiaries and affiliates, 10 will be
closed before the end of the current year to March 31, and
eight more in the next term.


Sato Kogyo also plans to approach a second-tier group of
creditors including Hokuriku Bank for loan forgiveness, the
sources said.

Sato Kogyo had about 396 billion yen in interest-bearing
debts and 96 billion yen in debt guarantees as of last
Sept. 30.

The company has already announced plans to book a total of
50 billion in special losses in the year ending March 31,
including a charge for subsidiary liquidation, as part of
its reconstruction efforts.

It has also been exploring the possibility of issuing about
20 billion yen worth of new shares for third-party
allocations.

The company may postpone the capital increase to April or
later to focus on debt relief talks with creditors.

Sato Kogyo is the fourth general contractor in Japan to ask
for creditors' debt forgiveness following Aoki Corp.,
Haseko Corp. and Fujita Corp. (Jiji Press English News
22-Feb-1999)


SEIYU: To sell shares to offset Y88bn charge
--------------------------------------------
Seiyu, the Japanese supermarkets operator, yesterday
announced it would sell shares in Yuohin Keikaku, the
retail company that owns the "Muji" stores, to offset a
Y88bn charge to restructure troubled subsidiaries.

Seiyu said it would book the restructuring loss, of which
Y27bn would be used to write off bad debts at Tokyo City
Finance, its commercial credit and leasing subsidiary.

Tokyo city Finance had accumulated as much as Y240bn in bad
debt during the bubble period, according to Michael Allen,
analyst at ING Barings, who welcomed the announcement.

Seiyu said it would sell 2.25m shares, or 15 percent of its
stake in Ryohin Keikaku, for a Y30.72bn profit tomorrow.

Seiyu's stake in Ryohin Keikaku will decrease to 20
percent. (Financial Times 23-Feb-1999)


TOYO CONSTRUCTION: Results announcement
---------------------------------------
Shares of Toyo Construction Co. fell 2 yen to 107. The
general contractor reported a group net loss of 10.6
billion yen for the year ending in March, compared with a
profit of 1 billion yen a year ago. That's also worse than
Toyo Keizai's forecast of a 1 billion yen profit.
(Bloomberg 23-Feb-1999)


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

HANGUK METAL INDUSTRY: Completes creditor reconciliation  
--------------------------------------------------------
According to the Korean language Maeil Kyungje's Business
Brief section, the Hanguk Metal Industry company completed
its creditor reconciliation procedure.


KOREA DEVELOPMENT BANK: Incurs deficit of $4 bil. last year
-----------------------------------------------------------
The net loss incurred by state-run Korea Development Bank
last year is estimated to reach a record high of 4.8
trillion won ($4 billion), the Financial Supervisory
Services said yesterday. The loss includes 2.1 trillion won
from selling its bad debts to the Korea Asset Management
Corp., and 2.2 trillion won in loan-loss provisions,
according to the FSS.

The bank's capital adequacy ratio as set forth by the Bank
for International Settlements is, however, expected to
surpass 11 percent because the government made an
additional capital injection of 5.41 trillion won last
year. The KDB's loss last year was its largest ever,
followed by Korea First Bank's 2.6 trillion won and Seoul
Bank's 2.2 trillion won losses. (Korea Herald 24-Feb-1999)


LG METALS: Results announcement
-------------------------------
South Korea's LG Metals yesterday posted a record net loss
of Won 782.58bn in 1998, after losing a net Won 147.29 a
year ago. "The loss in 1998 was due mainly to higher
interest payments on our debts under the country's
financial crisis early last year," the company said.

LG Metals' sales rose to Won 2,290bn in 1998, from Won
2,020bn in 1997, it said. LG Metals was set to be merged
with another LG Group subsidiary, LG Industrial Systems, by
April 1 to restructure its poor financial condition, it
said. The LG Group is seeking foreign investors to buy some
of LG Metals' assets or a majority stake in the company.
(Reuters and Financial Times 23-Feb-1999)


SEOULBANK: Seoul in deal on sale of top asset
---------------------------------------------
According to the South China Morning Post, HSBC Holdings
announced yesterday it had signed a memorandum of
understanding with the South Korean Government to buy a 70
per cent stake in Seoulbank for US$900 million. HSBC Korea
head Geoff Calvert said the transaction is expected to be
concluded after due diligence. A final contract is expected
by the end of May. Seoulbank's name will be changed to HSBC
after completion of the deal.

Under the agreement, the Korean government, which now owns
94 per cent of the bank, will maintain a 30 per cent stake
in it and receive additional warrants equivalent to 19 per
cent of the shares, enabling it to recoup most of the cost
of the support package.

HSBC will have a call option to buy the government's 30 per
cent stake over a three-month period four years after the
sale. The government, in turn, will have a put option to
sell the stake to HSBC within a year if HSBC opted not to
exercise the option.

The government has poured nearly five trillion won into
Seoulbank during the past year to recapitalise it and write
off huge debts.

Seoulbank's existing bad loans, and loans that become bad
over the next year, will be purchased by an asset
management company to be set up before the takeover.

Seoulbank's loss before provisions and tax widened to 772.4
billion won last year from a 610.7 billion won loss in
1997. Its net loss increased to 2.24 trillion won last year
from 916.6 billion won in the year-ago period.

HSBC will have full management rights for the bank, except
for key issues such as liquidation or capital reduction.

Sohn Sang-woo of the Korean Institute of Finance said
Korea's banking practices will be advanced with HSBC's
efficient management and innovative banking techniques.

Analysts said the acquisition would allow HSBC to compete
with local banks on an equal footing.

HSBC has had a presence in Korea for 10 years. It recently
launched an aggressive brand promotion campaign as it
broadened its business to retail banking.

Most foreign banks in Korea operate only two or three
branches while local banks run as many as 500 branches
nationwide. Foreign banks thus have traditionally focused
on niche markets such as private banking.

According to the Hong Kong Standard, HSBC will take a 70
per cent interest in Seoulbank for US$700 million and pay a
facilitation charge of US$200 million to the government.

The government will retain a 49 per cent economic interest
in the bank after the stake sale. It would receive the
price for a 49 per cent shareholding even when it sells the
remaining 30 per cent after HSBC exercises a call option.
South Korea's Financial Supervisory Service explained that
this would be possible because the deal grants the
government a 19 per cent stock option allowing it to
acquire and immediately resell 19 per cent of Seoulbank's
equity.

An adviser to the deal said its structure met the
objectives of both the government, which had tried to
retain a 49 per cent stake in Seoulbank, and  HSBC, which
wanted a bigger stake with management control.

The deal's adviser, Gokul Larola, vice-president of Morgan
Stanley Dean Witter's mergers and acquisitions unit, said
he believed HSBC would exercise its option to buy the 30
per cent stake which the government will retain at least
until the end of May 2003.

Seoulbank is one of South Korea's largest nationwide
commercial banks, offering a range of services such as
personal and corporate banking, treasury and trade
services. Its total customers are estimated at between 3.5
million and 4 million.

South Korea agreed to sell 51 per cent of Korea First to a
US consortium led by Newbridge Capital at the end of
December last year. The government is thought to have
turned down HSBC's bid as the company had initially sought
an up to 80 per cent stake.

The salling of both Seoulbank and Korea First are part of
South Korea's pledge to the International Monetary Fund in
return for a US$58.35 billion rescue package arranged in
late 1997.


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

IDRIS HYDRAULIC: Idris seeks debt panel's help
----------------------------------------------
Listed Idris Hydraulic -- controlled by prominent
businessman Ishak Ismail -- has joined a growing list of
debt-laden companies in seeking help from a debt
arbitration panel in Malaysia.

Idris said it has engaged Arthur Andersen as its adviser to
deal with its creditors through the Corporate Debt
Restructuring Committee (CDRC).

Arthur Andersen will also advise Idris on a corporate and
financial restructuring exercise, according to a statement
to the stock exchange here last night. "Perhaps KLSE may
wish to approach CDRC directly for 'observer' status at
CDRC's restructuring proceedings on Idris," the statement
added.

The discussion will also help unwind Idris' controversial
purchase of Wisma Idris from listed KFC Holdings. Both
companies have common shareholders.

Idris -- involved in timber, insurance and the manufacture
of home appliances -- did not give details of its proposed
revamp or debts.

According to its latest available annual report for the
year ended Dec 31, 1997, Idris had current liabilities of
about RM390 million (S$176 million) and current assets of
RM238 million. It had very little long-term loans. It
shareholders' funds stood at RM610 million.

Analysts said Idris may have to resort to a capital
reduction exercise or a redistribution of its reserves to
satisfy its creditors.

CDRC was set up by the government in August to help in the
restructuring of viable firms with debts of over RM50
million owing to more than one financial institution.
(Singapore Business Times 23-Feb-1999)


MALAYSIAN AIRLINES: MAS denies top-level reshuffle
--------------------------------------------------
Malaysian Airline System Bhd is not reorganising its
management, and the resignation of its managing director
last week is not a prelude to any top level reshuffle, a
company spokesman said yesterday. He denied market rumours
that there would be a shakeout after the voluntary
resignation of Wan Malek Wan Ibrahim, the managing director
of Malaysia Airlines for many years, who, the company said,
has opted for early retirement. (Reuters and Singapore
Business Times)


MBF NORTHERN: KPMG appointed special administrator
--------------------------------------------------
The Malaysian government has appointed KPMG Corporate       
Services to take over MBf Capital's ailing stockbroking       
firm, MBf Northern Securities.

Listed MBf Capital, an associate of listed MBf Holdings,
said KPMG will help "enhance the survival" of MBf Northern
as a going concern.

In a statement to the Kuala Lumpur Stock Exchange
yesterday, MBf Capital said creditors have been barred from
taking action against the stockbroking firm for a period of
12 months from Feb 12.

The appointment of the special administrator is part of a
government initiative to take over ailing brokerages in a
bid to rehabilitate them.

Besides MBf Northern, the government will also appoint
administrators to take over the management of Alor-Star
Securities, WK Securities, Labuan Securities, Taiping
Securities and Halim Securities.

The government stepped in following MBf Capital's failure
to sell the brokerage to listed OSK Holdings within the
time frame set by the authorities earlier this month.

MBf Capital, controlled by the Loy family, was earlier also
expected to assume its insolvent broking arm's debt of over
250 million Malaysian ringgit (S$112.8 million).

Last month, the Malaysian central bank took over the
management of MBf Capital's wholly-owned MBf Finance -- the
largest finance company in Malaysia -- due to its failure
to maintain its risk weighted capital ratio above the
minimum statutory requirement of 8 per cent.
(Singapore Business Times 23-Feb-1999)


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

PILIPINO TELEPHONE: PLDT pledges to recapitalise Piltel
-------------------------------------------------------
According to the South China Morning Post, reports from
Manila said that Philippine Long Distance Telephone (PLDT)
-- the Philippine telecommunication flagship of Hong Kong-
based conglomerate First Pacific -- has pledged to invest
two billion pesos to help recapitalise mobile-phone
subsidiary Piltel.

PLDT said yesterday Piltel had not come to agreement with
its creditors on restructuring its 34.9 billion pesos of
debt.

Piltel presented various proposals to its creditors --
including Metropolitan Bank and Trust, Chase Manhattan,
HSBC, Deutesche Bank, Bank of America, Citibank Far East
Bank and Trust and Philippine Commercial International Bank
-- on Friday for rescheduling debt repayments and
rehabilitating Piltel.

Reports quoted sources within creditor banks as saying that
PLDT's pledge was too small to bring Piltel back to strong
financial footing.

One sources said creditor banks were insisting that
recapitalisation should not be less than the four billion
pesos invested in Piltel by PLDT last year.

Piltel yesterday said it would report a substantial loss
for last year when it releases its results next month.

The Hong Kong Standard reported on the 2 billion pesos
investment and the meeting on Friday mentioned above. The
report said that some Piltel creditors were being offered a
debt-to-equity swap, revealed PLDT president.


WELLEX: Needs to refund shareholders of defunct company
-------------------------------------------------------
Holders of over-issued stock certificates of the defunct
Republic Resources and Development Corp. (Redeco) -- now
known as Wellex Industries, Inc. -- are entitled to a
refund.

Securities and Exchange Commission (SEC) made this ruling
after Wellex counsel Arthur Ponsaran asked the agency for
clarification on what to do with unaccounted Redeco stock
certificates.

In 1996, the firm asked holders of all old certificates to
surrender Redeco stock certificates after the new
management found the firm had over-issued stocks
certificates to the public in violation of SEC regulations.
At the time, it was found that there was an excess of 156.3
million Redeco shares issued to the public. (BusinessWorld
23-Feb-1999)


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

SIAM TYRE: To delist securities from SET
----------------------------------------
The Board of Directors of Siam Tyre Public Company Limited
held a meeting on February 22, 1999, to discuss the
operating results of Siam Tyre Plc., and the consolidated
operating results of Siam Tyre Plc., subsidiaries and
associated companies for 1998, and matters relating to the
withdrawal of the shares of Siam Tyre Plc. as listed
securities.

Siam Tyre Plc. in 1998 registered a net loss of Baht
109,174,555 and dividend payment for the year is suspended.

A proposal will be presented to a meeting of company
shareholders to withdraw the company's stocks as listed
securities. Siam Cement Public Company Limited, the
majority shareholder, seeks the withdrawal of stocks from
the listing when the company made an offer in January, 1999
to buy all of the stocks of Siam Tyre Plc., from other
shareholders at 250 baht per share.

A meeting will be held for an explanation on the withdrawal
of the shares from the listing on the Stock Exchange of
Thailand, on March 22, 1999 at 2.30 p.m. at Regent 3 Room,
The Regent Bangkok Hotel, Rajdamri Road, Bangkok. An
ordinary meeting of shareholders will be held on March 30,
1999 at 2.30 p.m. at Regent 3 Room,The Regent Bangkok
Hotel, Rajdamri Road, Bangkok. (Stock Exchange of Thailand
23-Feb-1999)


THAI OIL: Seeks extension negotiating on $1.9bn total debts
-----------------------------------------------------------
The country's largest refinery, Thai Oil, is negotiating
with its creditors to request an extension on the repayment
period for its $1.9 billion debt from the current four to
five years to at least 10 years, said Industry Minister
Suwat Liptapallop.

Having announced a moratorium on its debt in November last
year, Thai Oil is drafting new loan conditions, which would
include both a repayment period extension and debt
reduction through a debt-for-equity swap and new capital
injection.

Suwat, who is also the secretary general of the Chart
Pattana Party, said it would take at least 15 years for the
local oil refinery industry to recover. Thus, the repayment
period should be extended in line with this expectation.

The company's 124 creditors, led by Bangkok Bank, are to
make a decision on the proposed restructuring plan in the
next couple of months.

The Petroleum Authority of Thailand (PTT), which owns 49
percent of Thai Oil, is selling about $300 million worth of
Samurai bonds in the Japanese market to raise new funds for
the cash-strapped refinery. The bonds are to be jointly
guaranteed by Thailand's Ministry of Foreign Affairs and
Japan's Ministry of International Trade and Industry.

Thai Oil's debt restructuring plan is being drafted by
financial advisor Chase Manhattan Bank.
(Business Day [Thailand] 23-Feb-1999)


THAI PETROCHEMICAL: Obstacle to TPI debt deal removed
-----------------------------------------------------
Completion of a $3.2bn debt restructuring deal for Thai
Petrochemical Industry (TPI) -- Southeast Asia's single
largest bad debtor -- appears imminent with the
International Finance Corporation agreeing to drop its
opposition to the deal, TPI said yesterday.

A deal between TPI and its 148 other creditors would have a
substantial impact on the balance sheets of some big Thai
banks, particularly Bangkok Bank, whose credits to TPI are
non-performing and would be reclassified as performing
within three months of a final debt deal.

It would also end a bitter dispute between the company and
the IFC, the private sector lending arm of the World Bank,
that controls $500m of TPI's credits, its single largest
financial commitment.

TPI stopped paying interest and principal on loans in the
summer of 1997, soon after the devaluation of the Thai
baht.

More than a year later, the company convinced 72 percent of
its creditors -- but not the 75 percent needed under Thai
law -- to accept a debt restructuring deal that would see
30 percent of the company given to creditors in exchange
for accrued interest. They also accepted its promise to
raise $600m in new capital and an agreement to turn over 75
percent of the company to creditors in the event that the
company was unable to meet its new obligations.

But the IFC and some other official creditors, notably the
US Exim Bank, wanted the deal to include a condition
whereby 15 percent of the creditors could put the company
into default.

This would give IFC a near-unilateral right to declare a
default and change the company's management.

However, TPI said the threshold should be 25 percent and
announced it would start unilaterally paying interest back
to those banks that supported the company's proposal.

The new conditions will be submitted to all creditors for
approval in the coming weeks. (Financial Times 23-Feb-1999)


UNITED MOTOR WORKS: Results announcement
----------------------------------------
United Motor Works (Siam) Pcl. reports audited annual
financial statements as a net loss of Bt29.028m for the
year ending December 31, 1998. This compares to a loss of
Bt512,000 for the corresponding 1997 period. (Stock
Exchange of Thailand 23-Feb-1999)


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