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             A S I A   P A C I F I C      

      Wednesday, March 10, 1999, Vol. 2, No. 48

                    Headlines


* C H I N A   &   H O N G   K O N G *

ASIAN PROPERTIES (HK): In members' voluntary liquidation
AWT HOLDINGS: AWT hit by $1.25m demand
CHINA OCEAN SHIPPING: Moody's downgrades certificates
COLLIC LIMITED: In members' voluntary liquidation
CORE CRAFT TECHNOLOGIES LIMITED: Winding-up petition

CRETE HONG KONG LIMITED: In members' voluntary liquidation
GLOBAL TOP DESIGN & ENGINEERING: Winding-up petition
GUANGDONG INTERNATIONAL: Gitic crash warns province
SHENZHEN ZHONGHAO: Sued 136 times for loan guarantees
W&H ENGINEERING LIMITED: Winding-up petition

WIN CHAMPION INTERNATIONAL LIMITED: Winding-up petition


* J A P A N *

DAIWA BANK: Plans to abandon trust operations


* K O R E A *

DAEWOO HEAVY: To acquire subsidiary's auto division
HYUNDAI GROUP: Hyundai Revamp Completed
KIA MOTORS: Subsidiaries to fund purchase of Kia shares
KOREA LIFE INSURANCE: Debt-hit firm up for auction


* M A L A Y S I A *

PROTON: Talks on takeover of stake in advanced stage
RENONG: Bond issue proposed to bail Renong out of debt
RENONG: Anwar assails Renong deal


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

PHILIPPINE AIRLINES: Gets creditors' OK for revised plan


* T H A I L A N D *

SRITHAI SUPERWARE: Sees no need for new investment partners


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

ASIAN PROPERTIES (HK): In members' voluntary liquidation
--------------------------------------------------------
The creditors of Asian Properties (Hong Kong) Limited,
which is being voluntarily wound up, are required on or
before 5:00 pm on Mar 22 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 deemed to waive all of
such debts or claims and the liquidators will be entitled
seven days after the above date, to distribute the funds
available or any part thereof to the Members. Liquidators:  
John Bolton Carpenter, Room C, Capitol Centre Tower II, 28
Jardine's Crescent, Causeway Bay, Hong Kong.


AWT HOLDINGS: AWT hit by $1.25m demand
--------------------------------------
According to the South China Morning Post, AWT Holdings has
received a letter from International Bank of Asis demanding
repayment of $1.25 million.


CHINA OCEAN SHIPPING: Moody's downgrades certificates
-----------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services Inc. has downgrade certificates issued by
Cosco (Cayman) Freight Management Master Trust from Baa2 to
Baa3. This move was attributed to the weakening financial
condition of the China Ocean Shipping (Group) Company
(Cosco), as well as the anticipated weak operations for the
shipping industry.  

These certificates are backed by future shipping
receivables originating from Cosco's container shipments
related to its North America operations.

The article further stated that US legislation to be
implemented in the second quarter of this year (i.e., the
Ocean Shipping Reform Act of 1998) will add competition to
companies operating in US sea lanes.


COLLIC LIMITED: In members' voluntary liquidation
-------------------------------------------------
The creditors of Asian Properties (Hong Kong) Limited,
which is being voluntarily wound up, are required on or
before April 5 to send in their names, addresses and
particulars of their debts or claims to the Liquidator(s)
of the said company, Hau Kwan Ngan, Charles at 701 Yip Fung
Building, 2-18 D'Aguilar Street, Central, Hong Kong, 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.


CORE CRAFT TECHNOLOGIES LIMITED: Winding-up petition
---------------------------------------------------- A
petition for the winding up of Core Craft Technologies
Limited (Company Number 15997) was presented to the High
Court on Jan 18 by Long Bloom Enterprises Limited (formerly
known as south Textiles Limited) whose registered office
is situate at 32nd Floor, China United Centre, 28 Marble
Road, North Point, Hong Kong, and the said petition is
directed to be heard before the court at 9:30 a.m. on Mar
31, and any creditor or contributory of the said company
desirous to support or oppose the making of an order on the
said petition may appear at the time of hearing by himself
or his counsel for that purpose, and a copy of the petition
will be furnished to any creditor or contributory of the
said company requiring the same by the Solicitors for the
Petitioner, Messrs. S.H. Chan & Co. at 18th Floor, China
Overseas Building, 139 Hennessy Road, Wanchai, Hong Kong on
payment of the regulated charges for the same.


CRETE HONG KONG LIMITED: In members' voluntary liquidation
----------------------------------------------------------
The creditors of Crete Hong Kong Limited, which is being
voluntarily wound up, are required on or before April 9 to
send in their names, addresses and particulars of their
debts or claims to the Liquidator(s) of the said company,
Diana Miu-Yin Chung, 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.


GLOBAL TOP DESIGN & ENGINEERING: Winding-up petition
----------------------------------------------------
A petition for the winding up of Global Top Design &
Engineering Limited was presented to the High Court on Jan
12 by Wu Tung Ni of Flat C, 11th Floor, Block 6, City
Garden, North Point, Hong Kong, 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.


GUANGDONG INTERNATIONAL: Gitic crash warns province
---------------------------------------------------
According to the South China Morning Post, the closure and
subsequent bankruptcy of Gitic signals a warning for the
Guangdong provincial government to comply with the guidance
from the central government, the province's executive
vice-governor Wang Qishan said.

In an interview published in the March issue of the
Beijing-based Cai Jing Magazine and carried by the China
Daily yesterday, Mr Wang said window companies would not be
relied upon as the future financial channel for Guangdong's
economic growth. He said Guangdong was facing a rather
serious payment crisis and the underlying huge amount of
bad assets resulting from poor quality investment. He said
some senior management officials were under investigation
in relation to embezzlement and misappropriation of state-
owned assets in the province, which led to huge losses in
asset value.

Latest reports showed Gitic had a greater net deficit than
the 14.69 billion yuan announced in January.

Mr Wang said other than bankruptcy, neither creditors nor
debtors could offer any better solution that would provide
for greater protection for creditors and minimise their
losses.


SHENZHEN ZHONGHAO: Sued 136 times for loan guarantees
-----------------------------------------------------
The Asian Wall Street Journal reported that the Shenzhen
Zhonghao Group has been named as a defendant in 136
lawsuits after providing guarantees for business deals that
went bad. Zhonghao, which is a food and beverage company
based in southern China's Guangdong province, lists both
Class A and Class B shares (for local and foreign
investors, respectively). The amount of the law suits total
to 792 million yuan.

Zhonghao has been named the direct defendant in 44
lawsuits, and is the guarantor debts involved in 92 other
cases.  

Zhonghao has posted losses in two of the last three years
it reported earnings, and is reportedly suffering from a
prolonged slump in the food and beverage business.  Its
1998 mid year report stated that its total assets stood at
1.3 billion yuan. A regulator cited in the article state
that this company is extremely risky and it may be de-
listed and declared bankrupt.  


W&H ENGINEERING LIMITED: Winding-up petition
--------------------------------------------
A petition for the winding up of W&H Engineering Limited
was presented to the High Court on Jan 20 by Cheng Wai Lun  
of Room 601, Block A, King Shan Court, Kowloon, and the
said petition is directed to be heard before the court at
9:30 a.m. on Mar 31, and any creditor or contributory of
the said company desirous to support or oppose the making
of an order on the said petition may appear at the time of
hearing by himself or his counsel for that purpose, and a
copy of the petition will be furnished to any creditor or
contributory of the said company requiring the same by Tam
Lee Po Lin, Nina for Director of Legal Aid, 27th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong, on
payment of the regulated charges for the same.


WIN CHAMPION INTERNATIONAL LIMITED: Winding-up petition
-------------------------------------------------------
A petition for the winding up of Win Champion International
Limited was presented to the High Court on Jan 14 by Lai
Chun Luen of Flat B, 5th Floor, 2 Yin On Street, Tokwawan,
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.


=========
J A P A N  
=========

DAIWA BANK: Plans to abandon trust operations
---------------------------------------------
Japan's troubled Daiwa Bank Ltd. said Monday it may
give up its trust banking operations as it comes under
pressure to trim back its business and clear out its bad
loans.

Daiwa was one of 15 banks which Friday formally applied for
a combined 7,459 billion yen (60 billion dollars) in
crucial cash injections from the government.

Daiwa, one of the country's weakest major banks, will
receive its 408 billion yen handout by issuing preferential
shares to the government.

Tokyo can convert these within just three months to common
shares, which carry voting rights and would give the
government control over the bank.

As part of its extensive restructuring, Daiwa Bank has been
selling off overseas businesses, seeking to transform
itself into a "super regional bank" specializing in the
western region surrounding Osaka, where the bank is based.
(Agence France-Presse and Business Day [Thailand]
09-Mar-1999)


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

DAEWOO HEAVY: To acquire subsidiary's auto division
---------------------------------------------------
Daewoo subsidiary Daewoo Heavy Industries (DHI) said
Tuesday that it will turn over its automobile business,
which is involved in the production of compact cars,
commercial vehicles and buses, to Daewoo Motors at a cost
of W800 billion. DHI said that its assembly plants in
Changwon, Kunsan and Pusan would be sold to Daewoo Motors,
which is also a part of the Daewoo business group. The
assets of DHI come to W2.2 trillion, while liabilities
total W1.43 trillion. (Digital ChosunIlbo 09-Mar-1999)


HYUNDAI GROUP: Hyundai Revamp Completed
---------------------------------------
South Korean automobile giant Hyundai Motor Co. carried out
a high-level shakeup of its controlling family Monday to
bolster the power of new chairman Chung Mong-Ku, officials
said.

The new chairman fired Hyundai Motor vice-chairman Chung
Mong-Gyu, who is also his cousin, and his confidants,
transferring them to the construction arm of the Hyundai
Group, South Korea's largest family-run conglomerate.

Hyundai employees saw the shift as the completion of
primogeniture -- the right of succession belonging to the
first-born -- aimed at cultivating Hyundai Motor as a
separate entity dominated by Chung Mong-Ku, the eldest son
of the group's 84-year-old patriarch.

The new chairman last week replaced Chung Mong-Gyu's
father, who is also the patriarch's younger brother, to
become Hyundai Motor's unchallenged leader. "The shift will
help the eldest son cement his grip on Hyundai Motor," said
Kim Jong-Su, a Hyundai spokesman. (Agence France-Presse and
Business Day [Thailand] 09-Mar-1999)


KIA MOTORS: Subsidiaries to fund purchase of Kia shares
-------------------------------------------------------
Hyundai Group said yesterday that three of its
subsidiaries, rather than five as originally planned, will
have to come up with a combined 1.17 trillion won by March
29 for the purchase of Kia Motors shares.

The three Hyundai subsidiaries are Hyundai Motor, Hyundai
Capital Services and Inchon Iron and Steel. The two that
were dropped from the list of contributors are Hyundai
Industrial Development and Hyundai Heavy Industries.

The ratio of the three-way contribution was not known but
industry experts said the Hyundai Motor's portion would
likely amount to 70 percent of the total up 20 percent from
the original formula. With the share purchase completed,
Hyundai Motor will be able to take over full control of
bankrupt Kia Motors. (Korea Times 09-Mar-1999)


KOREA LIFE INSURANCE: Debt-hit firm up for auction
--------------------------------------------------
According to the Hong Kong Standard, South Korea's
government has given US giant Metropolitan Insurance the
tough action of taking over Korea Life Insurance through a
competitive auction, financial sources said.

The option came as Korea Life's attempt to attract a US$1
billion investment from the Metropolitan Insurance hit a
snag over the Korean insurer's debt.

An official of the Financial Supervisory Commission (FSC)
said Metropolitan has asked government help, insisting that
Korea Life's debt problems were more serious than expected,
and was told that the government would consider extending
conditional support if it took over Korea Life through an
auction.

The proposed auction came after the owner of Korea Life was
arrested last month on charges of shipping company funds
illegally out of the country.

Korea Life is a flagship of the Shin Dong Ah Group and the
country's third largest insurance firm which cornered a
15.7 per cent stake last year in the domestic insurance
market.

The company registered 8.5 trillion won in sales last year.
It has estimated its assets at 14.78 trillion and debt at
14.72 trillion won. However analysts said the company's
debt could be higher.

A spokesman of the company said the company still hopes to
sell a considerable stake to Metropolitan and negotiations
have not been over.


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

PROTON: Talks on takeover of stake in advanced stage
----------------------------------------------------
Negotiations between the DRB-Hicom group and Petronas over
the latter's acquisition of a sizeable stake in Proton is
in the advanced stage.

"I believe that we are just about concluding the
transaction," said DRB-Hicom group chairman Tan Sri Mohd
Saleh Sulong.

Mohd Saleh was asked by newsmen on the progress of the
proposed acquisition by the national oil corporation of the
entire 27% stake currently held by DRB-Hicom group in the
national car company.

There were one or two things that should be looked further
into, he said.

Mohd Saleh said this to reporters after the launching of
EON CMG Life Assurance Bhd's new insurance product by
International Trade and Industry Minister Datuk Seri
Rafidah Aziz.

EON CMG Assurance is a 60%-owned subsidiary of Edaran
Otomobil Nasional Bhd, an entity under the DRB-Hicom's
stable. (Bernama and The Straits Times 09-Mar-1999)


RENONG: Bond issue proposed to bail Renong out of debt
------------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Renong and a government-backed agency have
proposed an M$8.5 billion bond issue to restructure
the conglomerates's massive debts.

Second Finance Minister Mustapa Mohamed said the new plan
would not require public funds and would improve Malaysia's
image among foreign investors.

Last week the government extended a highway concession by
12 years to 2030 for UE's toll-road unit, Projek Lebuhraya
Utara Selatan (Plus) which has a hefty cash flow. The CDRC
said the company is the strongest in the group.

Representing a crucial divergence from an earlier aborted
plan, the new plan has been endorsed by the government's
Corporate Debt Restructuring Committee (CDRC).

The plan mainly involves the toll-road unit of Renong's
infrastructure affiliate United Engineers (UE) issuing $8.4
billion of seven-year bonds paying 10 per cent annual
interest.

The proceeds from the bonds would be used by Renong and UE
to repay creditors.

Senior analyst at Paribas Asia Equity Amin Abdul Manap said
the plan is the best that creditors can expected. He said
any impact the plan might have on the stock market has to
be positive.

Shares in Renong and UE had been suspended ahead of the
announcement. The Kuala Lumpur blue-chip index ended 3.04
points up at 519.86, which dealers attributed to technical
factors.

Renong's woes are considered a litmus test for the
government, which has pledged not to bail out politically
connected business leaders.

Mr Mustapa said there are no haircuts and no discrimination
against foreign lenders and this should send a positive
message to investors.

Renong's controversial executive chairman, Halim Saad, said
the plan should improve the group's prospects and he would
take a back-seat in operations once the plan was in place.


RENONG: Anwar assails Renong deal
---------------------------------
Malaysia's sacked finance minister Anwar Ibrahim on Tuesday
criticised a proposed $2.2 billion debt restructuring plan
for Renong Bhd as a bailout that he said was unfair to
hundreds of smaller companies.

"I regret this particular bailout decision because it lacks
transparency and does not display equal concern to hundreds
of other companies that encounter problems," Anwar said in
a written statement.

Anwar, who was sacked and arrested in September, was
commenting on a proposal by Renong and the government's
Corporate Debt Restructuring Committee (CDRC) to have the
toll road unit of Renong's affiliate United Engineers
(Malaysia) Bhd (UEM) issue 8.41 billion ringgit of bonds.

The proceeds would be used by Renong and UEM to repay
debts.

"When I was the minister of finance, the ministry had
rejected the bond issue proposed by Renong. Similarly,
their proposal for a drastic toll increase was also
rejected," Anwar said.

"And with my dismissal, Datuk Seri Dr Mahathir and Tun Daim
are free to act without obstruction," he said, referring to
Finance Minister Daim Zainuddin. (Reuters 09-Mar-1999)


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

PHILIPPINE AIRLINES: Gets creditors' OK for revised plan
--------------------------------------------------------
Major creditors of ailing Philippine Airlines (PAL) have
agreed in principle to support a revised rehabilitation
plan for the airline, provided the carrier could meet a
number of conditions, like raising $200 million in fresh
capital within three months.

PAL's management, led by its chair Lucio Tan, yesterday
said in a statement it will submit the revised
rehabilitation plan to the Securities and Exchange
Commission next week.

The announcement came a month after PAL held fresh
negotiations with the foreign creditors, who earlier
opposed the airline's original rehabilitation plan.

Approval of the secured creditors, which are owed the bulk
of PAL's $2.2 billion in debt, is critical to the survival
of Asia's oldest airline. Those creditors helped finance
PAL's plane purchases.

"We fully expect that they will agree to the final plan ...
subject to various conditions the most important of which
will be a capital infusion of approximately $200 million
within two to three months," PAL said.

PAL's original rehabilitation plan, submitted on Dec. 7,
was rejected by almost all creditors, mainly because they
viewed the proposed $150 million capital increase as
inadequate.

"They are entitled to repossess their property if we cannot
convince them that we have a viable plan, a competent
management and sufficient capital injection to be able to
return the company to profit and to start repaying them,"
PAL said.

As soon as PAL files the amended rehabilitation plan, the
SEC will hold marathon hearings so the Commission can
evaluate its plan's viability. The SEC will form an
independent body of receivers, tasked to see to it that the
rehabilitation plan is faithfully implemented.

Unlike in other debt suspension cases, PAL's receivership
committee shall not include representatives from PAL's
management, creditors and labor unions. The set-up aims to
shield the committee from a possible conflict of interest
situation. (Manila Times 09-Mar-1999)


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

SRITHAI SUPERWARE: Sees no need for new investment partners
-----------------------------------------------------------
Srithai Superware, a leading melamine and plastic products
producer, said it would not seek new partners after its
creditors allowed conversion of debt to equity.

Srithai in December last year ended talks regarding equity
acquisition with Berli Jucker (BJC), a Thai consumer
products distributor controlled by Hong Kong-based First
Pacific.

The negotiation was terminated because BJC sought to take
control of Srithai's 60 percent equity acquisition.

Srithai Group's President Sanan Angubolkul said "Creditors
want Srithai to emerge from its financial difficulty by
ourselves." To achieve the goal, creditors agreed with the
"indirect hair-cut" through conversion of as much as 50
percent debt to equity.

Part of the total debt $146 million will be rolled over by
another 5 to 6 years, Sanan said.

The rate on the restructured debt is set at LIBOR plus 1
percent.

Of its total debt, $86 million consists of bank loans and
the rest are convertible debentures.

The firm's debt restructuring has resulted in a preliminary
agreement with 123 creditors and bondholders. The plan,
which requires approval by creditors holding at least 75
percent of total outstanding debt value, is expected be
accepted this month.

After the debt conversion, Sanan and existing management of
Srithai will still retain their positions. Creditors have
asked for two seats on the company's board of directors in
order to monitor its financial position.

Currently, Sanan and his alliance control over 50 percent
equity in the company. (Business Day [Thailand]
09-Mar-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
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,
DC USA.  Debra Brennan and Lexy Mueller, Editors.

Copyright 1999.  All rights reserved.  ISSN: 1520-9482.  

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            * * * End of Transmission * * *