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             A S I A   P A C I F I C      

      Friday, February 26, 1999, Vol. 2, No. 4

                    Headlines


* C H I N A   &   H O N G   K O N G *

HWA KAY THAI: Shareholder fined for not reporting disposals


* I N D O N E S I A *

BANK DUTA: Thomson lowers currency debt ratings
BANK RAMA: Thomson lowers currency debt ratings


* J A P A N *

FUJITSU LTD: S&P downgrades Fujitsu
HASEKO CORP: To seek more debt forgiveness from 3 banks
JAPAN AVIATION: Results announcement
KOBE STEEL: President moved in reshuffle
LONG TERM CREDIT: Former pres to pay back Y200m retirement

MITSUBISHI OIL: Oil refiners' ratings cut to junk
NIPPON CREDIT BANK: Some life firms may have been favored
NIPPON OIL: Oil refiners' ratings cut to junk
SAKURA BANK: Results announcement
UBE INDUSTRIES: Results announcement

YASKAWA ELECTRIC: Results announcement


* K O R E A *

KOOKMIN BANK: S&P lowers rating of Kookmin Bank
SHINHAN BANK: S&P lowers rating of Shinhan Bank
TAEJU INDUSTRY: Starts creditor reconciliation


* M A L A Y S I A *

C&C BINTANG: Posts net loss of RM1.9 million
FABER GROUP: Defaults on loan payments
GENTING BHD: Earnings slump 46% to RM414m
RENONG: Awaits government stand on debt restructuring


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

FORT BONIFACIO: CIBI downgrades Fort Bonifacio debt rating
NEGROS NAVIGATION: Reports PhP820m net loss
PHILIPPINE AIRLINES: PAL plane payments resumed


* S I N G A P O R E *

CYCLE AND CARRIAGE: Reports $26m loss, its first since 1985
MCL LAND: Chalks up $188m loss


* T H A I L A N D *

PADAENG INDUSTRY: Pull-out causes pdi to restart debt plan
SIAM CEMENT: To sell 40b baht of non-core assets


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

HWA KAY THAI: Shareholder fined for not reporting disposals
-----------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, a key shareholder in troubled footwear company
Hwa Kay Thai Holdings, Wong Chong-shan, also known as
Keeree Kanjanapas, and his wholly owned investment company,
Flying Elephant Investment, have been prosecuted by the
Securities and Futures Commission (SFC) for failing to
report the disposal of up to 15 per cent of the company's
shares.

On six occasions from January to April last year, Wong
breached the Securities (Disclosure of Interests)
Ordinance by failing to report the sale of 218 million
shares representing 10.5 per cent of Hwa Kay Thai's issued
share capital and on three occasions, Flying Elephant
Investment breached the Ordinance in the sale of 111
million shares during the period, equal to 5.37 per cent of
the company.

Wong and Flying Elephant Investment were fined $18,000 and
required to pay costs of $8,900 to the SFC.

According to the South China Morning Post, Wong is a
substantial shareholder in Hwa Kay Thai with 21.8 per cent
of the company as of January last year and is formerly
its executive chairman. His father, Chue Meng, holds 48.77
per cent.

Hwa Kay Thai Holdings is to change hands after independent
third party, Patrick Wong agreed to buy 57 per cent of the
company for $60 million through wholly owned Shine United
International under an agreement made last November.

Hwa Kay Thai suffered a net loss of $2.51 billion in the
year to March last year after the meltdown in Thailand
savaged operations. It has net current liabilities of
$108.32 million and has warned of a possible liquidation if
creditors do not approve the share sale.

A debt restructuring involving repayment of loans of $255
million was announced by the company last month. After the
restructuring, its principal bankers will own 10 per cent
of the company and top creditor Puma will have 9.8 per
cent.


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

BANK DUTA: Thomson lowers currency debt ratings
-----------------------------------------------
The Asian Wall Street Journal reported that Thomson
BankWatch has downgraded the local currency debt ratings if
Bank Duta and Bank Rama from LC-3 to LC-4. This move was
made due to concerns about the deteriorating operating
environments for these banks.  

These banks are both dependent on receiving
recapitalization support in order to improve their core
businesses. Additionally, both have been reportedly hit by
increasing bad debt, an erosion of earning capacity, and
severe pressure on their capital base.


BANK RAMA: Thomson lowers currency debt ratings
-----------------------------------------------
The Asian Wall Street Journal reported that Thomson
BankWatch has downgraded the local currency debt ratings if
Bank Duta and Bank Rama from LC-3 to LC-4. This move was
made due to concerns about the deteriorating operating
environments for these banks.  

These banks are both dependent on receiving
recapitalization support in order to improve their core
businesses. Additionally, both have been reportedly hit by
increasing bad debt, an erosion of earning capacity, and
severe pressure on their capital base.


=========
J A P A N  
=========

FUJITSU LTD: S&P downgrades Fujitsu
-----------------------------------
The Korea Times reported on Agence France-Presse article
that the Standard and Poor's (S&P) Ratings Group has
lowered its publicly available information (pi) rating on
the Fujitsu Ltd. from A-pi to BBB-pi. Fujitsu is a major
Japanese computer manufacture whose electronic device
business has been hurt by the tough operating environment.  

The article noted the sharp downturn in the global market
for dynamic random-access memory (DRAM) chips.  
Additionally, the group's communication sector has also
performed badly due to a general drop in spending by
Japanese telecommunication companies. Furthermore, the
company is expected to have to spend quite a bit to keep up
with its high-tech competitors.


HASEKO CORP: To seek more debt forgiveness from 3 banks
-------------------------------------------------------
Haseko Corp. plans to revise its restructuring plan by
asking its three main creditor banks to forgive more than
50% of their loans to the troubled condominium builder,
sources close to Haseko said Thursday.

The revised plan would require Daiwa Bank, the Industrial
Bank of Japan and Mitsui Trust and Banking Co. to forgive
53.8% of their claims, instead of 48% suggested earlier,
the sources said.

In its restructuring plan unveiled last December, Haseko
asked 38 creditor banks and other financial institutions to
waive a total of 394 billion yen in loans made to the
Haseko group at a uniform 48% ratio.

This spawned opposition from life insurance companies with
fewer outstanding loans to Haseko than the main creditor
banks. The life insurers want the main creditor banks to
forgive a larger percentage of claims because they were in
a better position to know about Haseko's business
conditions.

The revised plan would bring the ratio of debt forgiveness
to 53.8% to the four major creditors, 42.3% for six quasi-
major creditor banks, 36% for other banks and 31.5% for
life insurance companies, the sources said.

Haseko will also seek to reduce the total amount of loans
to be waived by about 40 billion yen, while raising the
same amount of money by issuing new shares to its
creditors, the sources said.

Haseko hopes to reach agreement with its creditors on the
revised plan by the end of March, the sources said.
(Kyodo News 24-Feb-1999)


JAPAN AVIATION: Results announcement
------------------------------------
Shares of Japan Aviation Electronics Industry Ltd. rose 23
yen to 334. The industrial connector maker revised its
group net forecast for the year ending in March to a loss
of 500 million yen from an earlier net profit forecast of
400 million yen. That's also worse than Toyo Keizai's
forecast of a 400 million yen profit. (Bloomberg
25-Feb-1999)


KOBE STEEL: President moved in reshuffle
----------------------------------------
Kobe Steel surprised the Japanese stel industry yesterday
with the resignation of president Masahiro Kummoto and
replacing him with Koshi Mizukoshi, executive vice-
president. Mr Kumamoto has been appointed chairman.

The reshuffle comes just weeks after Kobe warned that
losses in the year to March would deepen to Y24bn on
turnover of Y1,350bn, against losses of Y4.9bn on sales of
Y1,535bn the year before.

Kobe has been hit by the collapse in steel and machinery
demand amid Japan's recession and the economic crisis in
Asia. This month it suffered another blow when the US
Commerce Department levied steep anti-dumping shipments
form Japan, essentially eliminating one of the only sources
of revenue growth. (Financial Times 25-Feb-1999)


LONG TERM CREDIT: Former pres to pay back Y200m retirement
----------------------------------------------------------
Binsuke Sugiura, a former president of the Long-Term Credit
Bank of Japan (LTCB), will pay back some 200 million yen of
a retirement allowance to LTCB with proceeds gained through
the sale of his home, the current LTCB president said
Thursday.

Sugiura is estimated to have received some 500-600 million
yen after taxes out of a 930 million yen retirement package
paid by LTCB, now placed under state control after racking
up a huge amount of bad loans. (Kyodo News 25-Feb-1999)


MITSUBISHI OIL: Oil refiners' ratings cut to junk
-------------------------------------------------
According to the South China Morning Post, Standard &
Poor's cut the credit rating to junk bond status for Nippon
Oil and Mitsubishi Oil. Based on publicly-available
information (pi), the two firms' ratings were brought down
to a speculative BB-pi form BBB-pi. The two firms plan to
merge in April next year to be the biggest refiner in
Japan.


NIPPON CREDIT BANK: Some life firms may have been favored
---------------------------------------------------------
Japan's Ministry of Finance is suspected of having favored
some major life insurance firms in persuading them to give
subordinated loans to Nippon Credit Bank, informed sources
said Wednesday.

In negotiations with prospective lenders to the struggling
long- term credit bank in 1997, the MOF may have promised
part of life insurers to make NCB repay new subordinated
loans at so an early time against common sense, the sources
said.

NCB, which was declared insolvent in December, is now under
temporary state control.

Subordinated loans have repayment priority secondary to
conventional loans in case of a borrower's failure, but
carry higher interest rates.

The bank had 217.5 billion yen in subordinated loans with
22 life and nonlife insurers in the summer of 1998, when it
refunded newly made loans with long maturities while asking
for deferring old loans with near due dates until 2005.

The move far deviates from the common knowledge on loans,
an official at a major life insurer said. Preferential
treatment appeared to have been extended to only certain
life insurance firms, which resisted the MOF-brokered
rescue scheme for NCB to the last stage, the official said.

NCB then explained whether to accept loan repayment or
deferral would be up to judgments by individual creditor
insurers.

But many in the life insurance industry regarded NCB's
explanation as unnatural, the sources said.

A financial regulatory source said the ministry approved
NCB's repayment plans but that it was impossible to
influence individual plans. (Jiji Press English News
24-Feb-1999)


NIPPON OIL: Oil refiners' ratings cut to junk
---------------------------------------------
According to the South China Morning Post, Standard &
Poor's cut the credit rating to junk bond status for Nippon
Oil and Mitsubishi Oil. Based on publicly-available
information (pi), the two firms' ratings were brought down
to a speculative BB-pi form BBB-pi. The two firms plan to
merge in April next year to be the biggest refiner in
Japan.


SAKURA BANK: Results announcement
---------------------------------
Shares of Sakura Bank Ltd. rose 10 yen to 260. Japan's
fourth-largest lender said it will cut 4,200 jobs, or 24
percent of its workforce, by March 2003 and close 160
overseas and domestic branches. It sees a parent, or non-
consolidated, loss of 370 billion yen for the year ending
March, 37 percent more than it announced last year, after
writing off 990 billion yen in bad loans. (Bloomberg
25-Feb-1999)


UBE INDUSTRIES: Results announcement
------------------------------------
Shares of Ube Industries Ltd. rose 13 yen to 166. The
chemical and machinery maker said it will cut its workforce
to 14,000 by March 2002, reduce interest bearing debt by 70
billion yen and spin off its machinery division in April
2000. It also lowered its group net profit forecast for
the year ending March by 75 percent to 500 million yen.
(Bloomberg 25-Feb-1999)


YASKAWA ELECTRIC: Results announcment
-------------------------------------
Shares of Yaskawa Electric Corp. fell 6 yen to 184. The
electric motor maker reversed its group net forecast for
the year ending in march to a loss of 4.4 billion yen from
an earlier profit forecast of 1 billion yen. That's also
worse than Toyo Keizai's forecast of a 1 billion yen
profit. (Bloomberg 25-Feb-1999)


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

KOOKMIN BANK: S&P lowers rating of Kookmin Bank
-----------------------------------------------
The Korea Times reported that the Standard and Poor's (S&P)
Ratings Group has lowered its long term rating of Kookmin
Bank from BB+ to BB. The outlook for Kookmin is negative.

The downgrade reflects the bank's weakened financial
condition and higher credit loss after its merger with the
Korea Long Term Credit Bank (KLB) last year. KLB, with its
corporate clientele, reportedly brought additional problem
loans (classified as precautionary, substandard, doubtful,
and loss) to the merged bank, as well as credit costs
associated with Korea's ongoing corporate restructuring
efforts.  

Kookmin, locally known for its success in retail banking,
is expected to be hurt by the predicted increases in
unemployment as nonviable firms in Korea are shut down this
year.


SHINHAN BANK: S&P lowers rating of Shinhan Bank
-----------------------------------------------
The Korea Times reported that the Standard and Poor's (S&P)
Ratings Group has lowered its long term rating of Shinhan
Bank from BB to BB-.

This downgrade reflects the bank's deteriorating financial
parameters resulting from rising uncollected loans,
shrinking profitability, and declining capital ratios.  
Shinhan will also reportedly be affected by stress on small
and medium sized companies, a sector in which Shinhan
specializes.  


TAEJU INDUSTRY: Starts creditor reconciliation
----------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Taeju Industry company starts its
creditor reconciliation procedure. The creditors have until
March 23rd 1999 to file their claims. The company's address
is 594-4 Kueui-dong, Kwangjin-gu, Seoul and the president
is Mr. Yi Kye-sang.


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

C&C BINTANG: Posts net loss of RM1.9 million
--------------------------------------------
Cycle & Carriage Bintang -- the 49-per cent Malaysian-
listed associate of Singapore's Cycle & Carriage Ltd --
shocked the market by posting a loss for the year ended 31
Dec 1998 as the economic recession led to a slump in demand
for Mercedez-Benz cars in Malaysia.

With turnover tumbling to RM590.7 million from RM1.5
billion in 1997, C&C Bintang recorded a net loss of RM1.9
million in 1998 against a net profit of RM147 million in
1997.

That was below market expectations of net earnings of at
least RM8 million. The company suffered a loss per share of
2 sen against earnings per share of 147 sen in the previous
year.

The company's performance is in line with the performance
in the auto industry with car sales down 60 per cent last
year due to a severe credit crunch. C&C Bintang's share
price, which closed unchanged at RM5.25, is supported by
its net tangible asset per share of RM5. (Singapore
Business Times 25-Feb-1999)


FABER GROUP: Defaults on loan payments
--------------------------------------
The Asian Wall Street Journal reported that the Faber Group
Bhd. has defaulted on interest payments worth 5.9 million
ringgit. These payments were for loans amounting to 234.4
ringgit.  

Faber told the local stock exchange that it was unable to
make these payments due to a tight cash flow situation.  
The default also constitutes a cross default on other loan
facilities (i.e., other Faber loan agreements automatically
default due to a clause in their agreements regarding
default by Faber on any other loan). Faber is planning a
debt restructuring plan to address its cash flow problems.

Faber is an investment holding company involved in hotel
and property management.


GENTING BHD: Earnings slump 46% to RM414m
-----------------------------------------
Genting Bhd has posted lower-than-expected profits for        
the year ended Dec 31, 1998, due to poorer earnings        
from its casino business and a one-off amortisation of
goodwill from the controversial purchase of Star Cruises
last year.

The company recorded a net profit of 414.3 million
Malaysian ringgit (S$188 million), down 46.3 per cent from
RM771.3 million in 1997. The profit was below market
expectations of more than RM500 million.

Earnings per share (EPS) tumbled to 58.8 sen from 109.6 sen
in 1997. (Singapore Business Times 25-Feb-1999)


RENONG: Awaits government stand on debt restructuring
-----------------------------------------------------
According to the Hong Kong Standard, the New Straits Times
yesterday quoted Renong executive chairman Halim Saad as
saying that Renong said was awaiting a government decision
on its debt restructuring plan which was submitted about
two months ago, and involves the restructuring of debts at
Renong and its associate United Engineers (UEM), which
operates the 850-kilometre North-South Expressway.

Mr Halim said the restructuring plan was drawn up with help
from the central bank's Corporate Debt Restructuring
Committee, an arbitrator between indebted local firms and
their creditors.  

Government officials and industry sources said some 8.5
billion ringgit in bonds and loans owed by Renong and UEM
would be replaced by long-dated paper issued by UEM
subsidiary Projek Lebuhraya Utara Selatan.

Asked by the newspaper, Mr Halim said it would be up to the
banks whether he would retain control of Renong; if they
sold the shares, he would have nothing left.


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

FORT BONIFACIO: CIBI downgrades Fort Bonifacio debt rating
----------------------------------------------------------
CIBI Ratings,  Inc. downgraded  its  rating on  Fort  
Bonifacio Development Corp.'s (FBDC) one-billion-peso
short-term commercial papers (STCPs) to CIB 3 Plus  from
its CIB 2 Minus grade in April 1998.

The first tranche, worth 500 million Philippine pesos
(PhP), was issued this month and will mature a year after.
FBDC has yet to issue the remaining PhP500 million and it
has until August 1999 to issue STCPs, a CIBI Ratings
analyst said.

CIBI Ratings, which measures a company's capability to pay
both principal and interest, said the downgrade was mainly
a result of the negative impact of the sluggish economy on
the property sector. Thus, the quality of FBDC's
receivables portfolio and earnings performance
deteriorated, the ratings agency said. (BusinessWorld
25-Feb-1999)


NEGROS NAVIGATION: Reports PhP820m net loss
-------------------------------------------
Huge expenses and financing charges resulted in net losses
for Metro Pacific Corp. (MPC) subsidiary Negros Navigation
Co., Inc. (Nenaco) last year amounting to 820 million
Philippine pesos (PhP).

Losses for 1998, however, slightly narrowed compared with
the PhP941-million losses posted the previous year.

The company reported yesterday that although revenues
slightly improved last year to PhP2.12 billion as a result
of higher freight and passage revenues, increased cost of
sales and expenses and financing charges affected Nenaco's  
bottomline.

Cost of sales and expenses grew by 17.3% to PhP2.22 billion
due to a significant increase in the prices of imported
fuel, vessel spare parts and cargo handling equipment.
(BusinessWorld 25-Feb-1999)


PHILIPPINE AIRLINES: PAL plane payments resumed
-----------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, PAL said in a statement to the Securities and
Exchange Commission it had signed agreement with three
US and European firms -- Airplanes Finance and GPA Group,
both of Ireland, and GE Capital of the United States -- to
resume its lease payments on four Boeing aircraft.

Airplanes Finance had declared PAL in default and
threatened to seize a leased Boeing 737-300 after the
airline suspended debt payments in June.

GE Capital leased two aircraft and GPA Group, one, all of
the same make.

PAL said the three firms had reviewed a rehabilitation plan
the airline filed with the commission. It said the
agreement is to resolve and put an end to the issues raised
by them in connection with the proceedings relating to the
motion for redelivery of aircraft.

Under the agreement, PAL will pay the lessors monthly
rental of US$220,000 for each aircraft until its
rehabilitation plan is formally implemented. PAL will also
pay monthly maintenance reserves based on actual usage and
all arrears of rent and other amounts due under the lease
agreement.


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

CYCLE AND CARRIAGE: Reports $26m loss, its first since 1985
-----------------------------------------------------------
Cycle & Carriage Ltd (CCL) reported a group net loss of
$26.7 million for the year ended Dec 31, 1988 -- its first
spill of red ink since 1985. The motor and property company
posted a profit of $158.8 million in 1997.

As expected by analysts, the company made aggressive
provisions for foreseeable losses in its property business.
A total provision of $223.9 million was made for properties
owned by 60 per cent subsidiary MCL Land. CCL's share of
this was $133.7 million.

Loss per share stood at 11.4 cents, against earnings per
share 67.9 cents previously. (Singapore Business Times
25-Feb-1999)


MCL LAND: Chalks up $188m loss
------------------------------
MCL Land, the property arm of listed Cycle & Carriage, said
yesterday it made a loss of $188.5 million for the year
ended Dec 31, 1998. Though the quantum of the loss exceeded
analysts' expectations, MCL directors said they had entered
1999 "on a clean slate" and hoped group results for 1999
would be "substantially better".

Turnover in FY98 stood at $348 million, a 17 per cent rise
over the previous year's $297 million.

MCL said its bottom line was hit by a further provision of
$110.5 million, in addition to provisions of $113.4 million
it announced for its interim period.

Losses per share were 51.1 cents, while its net tangible
assets for FY98 were $2.20. (Singapore Business Times
25-Feb-1999)


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

PADAENG INDUSTRY: Pull-out causes pdi to restart debt plan
----------------------------------------------------------
Perth-based Western Metals yesterday announced its decision
to revoke a planned deal to acquire 32 percent of Padaeng
Industry (PDI), forcing the cash-strapped zinc miner to
restart the whole debt restructuring process with its nine
creditors.

"We failed to reach a conclusion over several crucial
issues," said Western Metals President Rod Webster. "Thus,
we are not likely to pay more for the remaining shares."

Under the previous plan, Western Metals, which already owns
13 percent of PDI, was to buy 32 percent more of the mining
firm for about 1.14 billion baht.

To date, Western Metals had already paid for 6.6 million
shares of PDI. The total shares allocated for the
acquisition deal were 811.6 million shares.

PDI, which sold several money-losing units last year as
part of its streamlining program, plans to use the money to
repay about a third of its outstanding debt of about 3.4
billion baht. (Business Day [Thailand] 25-Feb-1999)


SIAM CEMENT: To sell 40b baht of non-core assets
------------------------------------------------
Thailand's biggest conglomerate, Siam Cement plc,      
yesterday announced a 40 billion baht (S$1.8 billion)
assets purge after posting a huge turnaround in group
profit despite an 8 per cent drop in revenues.

Company president Chumpol Nalamlieng said discussions with
strategic partners are likely to result in the sale of non-
core assets worth 40 billion baht by the end of this year.
But he declined to identify the potential buyers.

Siam Cement last year announced it was refocusing on its
core businesses of cement, petrochemicals and paper.

Analysts said Siam Cement's bottom line should improve as
under-performing units were sold off this year and its
US$5.2 billion (S$9 billion) in debts were restructured.
"Selling off unprofitable units means the group will be
relieved of the debt burden that it might otherwise have to
finance," one analyst said.

The group said a foreign-exchange windfall boosted group
net profit last year to 19.34 billion baht against a loss
52.55 billion baht in 1997.

Mr Chumpol said total consolidated revenues in 1998
amounted to 113.19 billion baht compared with 122.62
billion a year earlier, down 9.43 billion baht or 8 per
cent. Domestic sales revenues declined 27 per cent while
export sales grew 66 per cent.

Consolidated assets at the end of 1998 were worth 311.49
billion baht from 350.83 billion a year earlier, following
the revaluation of assets to fair market value and the
reduction of inventories.

No dividend would be paid because the company had an
accumulated loss of 15.34 billion baht and still required
cash to meet debt obligations. (Agence France-Presse and
Singapore Business Times 25-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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            * * * End of Transmission * * *