/raid1/www/Hosts/bankrupt/TCRAP_Public/990311.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      

      Thursday, March 11, 1999, Vol. 2, No. 49

                    Headlines


* C H I N A   &   H O N G   K O N G *

EAST POINT INVESTMENT: Winding-up petition
FOUR SEAS TRAVEL: Four Seas bosses 'abused' status
GUANGZHOU INTERNATIONAL: Gzitic debt up 75 pc to US$700m
GAUSS ELECTRONICS COMPANY LIMITED: Winding-up petition
HWA KAY THAI HOLDINGS: Hwa Kay Thai has restructuring nod

SHUN HEI LAU RESTAURANT LIMITED: Winding-up petition
WIN BONDS LIMITED: Winding-up petition


* I N D O N E S I A *

BAKRIE & BROS: HK debt firm bids for Bakrie debt
SALIM GROUP: Sells its 23% UIC stake to listed HK firm


* J A P A N *

FUJI CHICHIKU: Iyo Bank to absorb credit association Oct. 1              
NISSAN DIESEL: DaimlerChrysler ends talks on equity stake
NISSAN MOTOR: DaimlerChrysler won't take equity stake


* K O R E A *

HALLA GROUP: Rothschild in US$345m loan to reduce debt
KOREA MERCHANT: Banks may merge with security firms
LG MERCHANT: Banks may merge with security firms
TONGYANG MERCHANT: Banks may merge with security firms
ULSAN MERCHANT: Banks may merge with security firms


* M A L A Y S I A *

AJIYA BHD: 47% lower group profit
GENERAL SOIL ENGINEERING: To appeal winding-up petition
KHONG GUAN HOLDINGS: Defaults in payment of RM1.03m
LANDMARKS BHD: Unit to settle debt with land in Setapak
MBF HOLDINGS: Modifies debt restructuring proposal

PARIT PERAK HOLDINGS: Asset sales to prevent further losses
RENONG BHD: Analysts praise restructuring
SUASA UNIK: Negotiating settlements with creditors
TRONOH MINES: Awaits decision on loans
WESTMONT INDUSTRIES: Seeks extension on creditors' meeting

YUNG KONG: Reports lower profit


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

AIRCRAFT FINANCING: PAL creditor demands three aircraft
PHILIPPINE AIRLINES: Creditor seeks return of 3 aircraft
PILIPINO TELEPHONE: SEC to probe Piltel debt
SERG'S PRODUCTS: Junk motion vs. debt relief


* T H A I L A N D *

PROPERTY PERFECT: Seeks help to pay back debts
SHINAWATRA COMPUTER: Shinawatra name changes win approval
THAI MODERN: Guarantors of plastic firm face big bill
THAI OIL: PTT ready to issue $240m bond by mid-year
THAMMATANI CO: Debt talks going slowly


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

EAST POINT INVESTMENT: Winding-up petition
------------------------------------------
A petition for the winding up of EAST POINT INVESTMENT       
LIMITED or alternatively Lau Yiu Kit, Chu Kam Ping and
Megumi Andoh be ordered to buy the shares of Lau Yuk Chuen
at a price to fixed by the court was presented to the High
Court on Feb 13 by Lau Yuk Chuen of Flat F, 27th Floor,
Block 8, Royal Ascot, No. 1 Tsun King Road, Shatin, New
Territories, and the said petition is directed to be heard
before the court at 11:00 am on April 14, 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 Shaw, Ng & Ma at 3304 Lippo Centre, Tower One, 89
Queensway, Hong Kong on payment of the regulated charges
for the same.


FOUR SEAS TRAVEL: Four Seas bosses 'abused' status
--------------------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, Four Seas Travel International's managing
director and chairman, Leung Hoi and Leung Yeung Lai-ling,
respectively, have been accused of abusing their positions
for personal profit and deliberately thwarting rescue bids
by new majority shareholders.

Legal action on behalf of Four Seas has been launched by
Universal Yield Ltd., a wholly owned subsidiary of South
China Strategic Investments Ltd., which bought a 58.8 per
cent stake in Four Seas in January.

The South China Morning Post said that Universal is seeking
a court order for the Leungs to provide an account of all
money and personal profit made as a result of alleged
breach of duties. It also seeks damages.

It is also claimed that the Leungs, who remain in control
of the board, stymied requests for cooperation from
Universal to solve Four Seas' financial woes; refusals to
give Universal nominees access to financial information or
take part in Four Seas' management hampered the company
from financial hardship. Universal nominees were barred
from attending meetings with banks to discuss debt
restructuring, and the Leungs refused any proposals.

The writ said that the Leungs, however, offered the
relevant financial information if Universal pledged to
inject capital into Four Seas.

The Leungs were also allegedly responsible for the
"wrongful" sale in December 1998 of their residential
property, Eastbourne Court owned by Four Seas. The property
was sold at $3.2 million to Silver Mart Trading Ltd.
Universal claims it was worth $4.8 million and Silver Mart
was a trading vehicle used to acquire the property as a
device for defrauding Four Seas, with advantages made for
the Leungs.

According to the Hong Kong Standard, the writ alleges that
the Leungs refused to cooperate with Universal regarding
the appointment of new executive directors and formulation
of a corporate restructuring program.

The writ says that to ensure proper financial management
and prevent further action by creditor banks, Universal
requested the Leungs to appoint officers it nominated, but
by late February, only the new chief financial officer with
limited authority had been appointed.


GUANGZHOU INTERNATIONAL: Gzitic debt up 75 pc to US$700m
--------------------------------------------------------
According to the South China Morning Post, financially
troubled Gzitic has foreign debts of about US$700 million,
more than 75 per cent higher than was revealed in January.

Guangdong executive vice-governor Wang Qishan said in
Beijing yesterday that the company would not go bankrupt.

Officials from the Guangzhou government and the firm will
meet the company's creditor banks in Guangzhou next
Wednesday on a possible debt and asset restructuring. They
have appointed PricewaterhouseCoopers as the financial
adviser on the restructuring.


GAUSS ELECTRONICS COMPANY LIMITED: Winding-up petition
------------------------------------------------------
A petition for the winding up of GAUSS ELECTRONICS COMPANY           
Limited or alternatively Lau Yiu Kit, Chu Kam Ping and
Megumi Andoh be ordered to buy the shares of Lau Yuk Chuen
at a price to fixed by the court was presented to the High
Court on Feb 13 by Lau Yuk Chuen of Flat F, 27th Floor,
Block 8, Royal Ascot, No. 1 Tsun King Road, Shatin, New
Territories, and the said petition is directed to be heard
before the court at 11:00 am on April 14, 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 Shaw, Ng & Ma at 3304 Lippo Centre, Tower One, 89
Queensway, Hong Kong on payment of the regulated charges
for the same.


HWA KAY THAI HOLDINGS: Hwa Kay Thai has restructuring nod
---------------------------------------------------------
According to the South China Morning Post, shareholders of
troubled Hwa Kay Thai Holdings yesterday voted in favor of
a debt restructuring proposal for independent investor
Patrick Wong to inject $60 million through his wholly-owned
investment vehicle Shine United International in exchange
for a 57.5 per cent stake in the company.

The Securities and Futures Commission indicated it would
exempt Shine United from having to make a mandatory general
offer to acquire all outstanding shares it does not hold.

Major creditors including banks and Puma Rudolf Dassler
Sport, will waive 55 per cent of the company's unsecured
debt, worth a total of about $130 million.

The balance of debt owed will be settled by about $59
million in cash, $23.61 million worth of new shares and
$23.61 million worth of convertible bonds.

The restructuring will see the company's net tangible asset
position improved from negative $113 million as at November
30, last year to positive $90 million.

Ececutive director Stephen May Wai-kwan said the new
majority shareholder is likely to inject new business into
the company, the nature of which is yet unknown.

Upon the restructuring, Mr Wong will become chairman of the
board.

Mr Wong has been active in property development and
investment in Hong Kong, and has interests in a mainland
beer manufacturing and distribution joint venture.


SHUN HEI LAU RESTAURANT LIMITED: Winding-up petition
----------------------------------------------------
A petition for the winding up of Shun Hei Lau Restaurant
Limited was presented to the High Court on Jan 27 by Wong
Kam Ming of Room 718, 7th Floor, Wong Tung House, Tung Tau
Estate, Kowloon, and the said petition is directed to be
heard before the court at 9:30 a.m. 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 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 BONDS LIMITED: Winding-up petition
--------------------------------------
A petition for the winding up of Win Bonds Limited was
presented to the High Court on  Jan 13 by  Ho Chi Hing,
Simon of Flat B, 31/F., Hangyang House, Tsuen Wan Centre,
Tsuen Wan, New Territories, 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.


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

BAKRIE & BROS: HK debt firm bids for Bakrie debt
-------------------------------------------------
The Asian Wall Street Journal reported that the Asia Debt
Management Hong Kong Ltd. has offered to acquire $1.1
billion of PT Bakrie & Brothers' outstanding debt in a non-
cash transaction. Asian Debt Management's tender is aimed
at the conglomerate's smaller creditors so that they could
take a more active role in the progress of the restructured
company. The deal involves creditors receiving shares in
the new Tetra Sub-Fund, that is designed to pool the Bakrie
debt in exchange for transferring it to Asia Debt
Management.

Bakrie, the flagship of the Bakrie Group and one of
Indonesia's largest conglomerates, reportedly plans to
finish a debt-for-equity restructuring deal with its 200
creditors by June. Earlier reports stated that this
restructuring involves exchanging debt for 80 percent of a
new Bakrie holding company that would own shares in five of
Bakrie's key assets, including 5.3 percent of the New York
listed Iridium LLC, the international satellite
communications company. Other possible assets to be
included in the new company are PT Bakrie Sumatra
Plantations, the Bakrie steel pipe operation, and its
electronics segment.

Bakrie reportedly stopped servicing its debt in January,
1998 and controls PT Bank Nusa Nasional, one of 40 banks
that the Indonesian government is considering closing.  
This conglomerate is controlled by the influential
businessman Aburizal Bakrie, and is active mainly in
telecommunications, finance, and steel pipe manufacturing.


SALIM GROUP: Sells its 23% UIC stake to listed HK firm
------------------------------------------------------
After nine years and over $100 million in losses,
Indonesia's beleaguered Salim group is selling its entire
23 per cent stake in United Industrial Corporation to
Hongkong-listed HKR International for $310 million.

HKR is controlled by the Cha family, an influential clan
with good connections in China. Payson Cha, son of the
founder, has joint ventures in Hongkong and China with the
Government of Singapore Investment Corporation (GIC), the
investment arm of the Singapore government.

A statement from KMP, the Singapore arm of the Salim group,
said HKR will pay $1 a share, or a total $310.87 million,
for its 310.87 million shares in one of Singapore's biggest
prime office landlords. This is a big premium to UIC's
closing price of 72.5 cents yesterday. The last time UIC
hit $1 was 18 months ago, in September 1997.

The owners of the Salim group -- Indonesia's former Number
One tycoon Liem Sioe Liong and his son Anthony Salim --
have been under severe pressure in Indonesia following the
downfall of President Suharto, widely acknowledged as their
patron.

But a general offer of UIC, costing up to another $1
billion based on an offer price of $1 a share, would be too
risky for HKR. The market is expecting Mr Cha to bring in                  
one or more partners in the fight for UIC.

UIC is in the detergent, property and technology sectors.
But what attracted Mr Wee, and now Mr Cha, is its 56.4 per
cent stake in listed Singapore Land, owner of some of the
choicest office buildings in the Raffles Place area.
(Singapore Business Times 10-Mar-1999)


=========
J A P A N  
=========

FUJI CHICHIKU: Iyo Bank to absorb credit association Oct. 1              
-----------------------------------------------------------
Iyo Bank, a regional bank based in western Japan,  
announced Wednesday it will absorb Fuji Chochiku Shinyo
Kumiai, an ailing local credit association, on Oct. 1.

Fuji Chochiku has been financially troubled and unable to
restructure on its own, industry sources said. Based in
Imabari, Ehime Prefecture, the credit association has only
two outlets.

Iyo Bank, based in Matsuyama, Ehime Prefecture, has around
160 outlets and is known as having sound management. It
reported a pretax profit of 11.9 billion yen on revenue of
120.9 billion yen for the year ended March 31, 1998.

Iyo Bank is listed on the Tokyo Stock Exchange's First
Section. (Kyodo News 09-Mar-1999)


NISSAN DIESEL: DaimlerChrysler ends talks on equity stake
---------------------------------------------------------
In addition, DaimlerChrysler has ended its discussions
about taking an equity stake in Nissan Diesel, Nissan's
commercial vehicle business.
     
Meanwhile, Nissan Diesel revised downward its forecasts for
the current fiscal year ending March 31, hurt by continued
sluggish truck demand, as well an extraordinary loss of 20
billion yen ($170 million) related to a capital increase in
an ailing sales affiliate. (The Wall Street Journal
10-Mar-1999)


NISSAN MOTOR: DaimlerChrysler won't take equity stake
-----------------------------------------------------
Auto maker DaimlerChrysler AG Wednesday said it has
terminated its talks with Nissan Motor Co. over taking an
equity stake in the debt-hobbled Japanese auto maker,
though it will continue to cooperate with Nissan on
commercial vehicle projects.

The company didn't give any specific reasons for the
decision, but Mr. Schrempp said that the integration of the
newly merged DaimlerChrysler currently takes priority over
other business activities. "Against this, we had to accept
that the opportunities a close relationship with Nissan
offer aren't achievable as quickly and smoothly as
initially expected," Mr. Schrempp said.

Talks over a possible linkup will continue between Nissan
and Renault SA, Renault Chief Executive Louis Schweitzer
said at the Geneva International Motor Show. He said there
was no deal yet and referred to Renault's statement of
March 1, in which the French auto maker said Nissan would
offer a good strategic fit.

Nissan Motor will post an extraordinary loss of 20 billion
yen this fiscal year as it raises its capital in Nissan
Diesel Motor Sales, an affiliate jointly-owned with Nissan
Diesel. Nissan Motor, however, left unchanged its forecasts
for the fiscal year, as the loss had already been factored
in. (The Wall Street Journal 10-Mar-1999)


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

HALLA GROUP: Rothschild in US$345m loan to reduce debt
------------------------------------------------------
According to the South China Morning Post, Rothschild, a US
investment bank in charge of overhauling South Korea's
insolvent Halla Group, will distribute a US$345 million
bridge loan this week to help the firm cut debt at Halla
Cement Manufacturing. The arrangement is made as part of a
drive to sell or seek foreign investment for Four Halla
units: Mando Machinery, Halla Engineering & Construction
and Halla Heavy Industries. The four account for about 70
per cent of the group's total assets.


KOREA MERCHANT: Banks may merge with security firms
---------------------------------------------------
The Korea Herald reported that at least four of the
nation's twelve merchant banks will probably merge with
security companies in order to survive.  

The four merchant banks mentioned for possible mergers this
year are Korea Merchant Banking Corporation, LG Merchant
Banking Corporation, Tongyang Merchant Bank, and Ulsan
Merchant Bank.


LG MERCHANT: Banks may merge with security firms
------------------------------------------------
The Korea Herald reported that at least four of the
nation's twelve merchant banks will probably merge with
security companies in order to survive.  

The four merchant banks mentioned for possible mergers this
year are Korea Merchant Banking Corporation, LG Merchant
Banking Corporation, Tongyang Merchant Bank, and Ulsan
Merchant Bank.


TONGYANG MERCHANT: Banks may merge with security firms
------------------------------------------------------
The Korea Herald reported that at least four of the
nation's twelve merchant banks will probably merge with
security companies in order to survive.  

The four merchant banks mentioned for possible mergers this
year are Korea Merchant Banking Corporation, LG Merchant
Banking Corporation, Tongyang Merchant Bank, and Ulsan
Merchant Bank.


ULSAN MERCHANT: Banks may merge with security firms
---------------------------------------------------
The Korea Herald reported that at least four of the
nation's twelve merchant banks will probably merge with
security companies in order to survive.  

The four merchant banks mentioned for possible mergers this
year are Korea Merchant Banking Corporation, LG Merchant
Banking Corporation, Tongyang Merchant Bank, and Ulsan
Merchant Bank.


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

AJIYA BHD: 47% lower group profit
---------------------------------
Ajiya Bhd's group operating pre-tax profit for the year
ended Nov 30, 1998 fell by 47.33% to RM7.821mil from
RM14.850mil the previous year.

Turnover for the group dropped by 10.82% to RM73.180mil
from RM82.058mil.

However, at company level, Ajiya reported a jump of
1,725.33% in operating pre-tax profit to RM1.369mil from
RM75,000 previously while turnover soared to RM1.48mil from
RM131,000.

Ajiya said there was a drop in its profit margin due to the
reduction in selling price of the group's products due to
stiff competition and increase in cost of raw materials.

Ajiya proposed a final dividend of 5% less tax. (Bernama
and The Star Online 10-Mar-1999)


GENERAL SOIL ENGINEERING: To appeal winding-up petition
-------------------------------------------------------
General Soil Engineering Holdings Bhd has informed the High
Court of its intention to appeal to the Court of Appeal
pertaining to the winding-up petition by Shing Hup Hin
Construction Sdn Bhd.

General Soil Engineering's application for stay of the
petition pending appeal under the inherent jurisdiction of
the High Court was earlier dismissed and a new date for the
hearing of the winding-up petition has been fixed for April
16 1999. (Business Times 09-Mar-1999)


KHONG GUAN HOLDINGS: Defaults in payment of RM1.03m
---------------------------------------------------
Khong Guan Holdings Malaysia Bhd announced that it has
defaulted in a payment of RM1.03 million to Hongkong Bank
while its subsidiaries Ingenious Heritage Sdn Bhd and
Golden Grandeur Sdn Bhd have defaulted in payments of
RM2.22 million and RM247,125 respectively to Perwira Affin
Bank Bhd.

Khong Guan's default is for the repayment of a recalled
unsecured overdraft facility together with interest thereon
as at January 31 1999.

As at January 31 1999, Ingenious Heritage's owed Perwira
Affin RM5.55 million inclusive of interest, under its
overdraft and term loan facilities which are secured.

Meanwhile, Golden Grandeur owed Perwira Affin RM6.75
million inclusive of interest, under its (secured) term
loan facility as at the January-end.

This subsidiary's default payment will empower the
debenture holder Perwira Affin to appoint a receiver to
Golden Granduer.

Khong Guan and its subsidiaries are in the process of
negotiating with its bankers on terms to address the
defaults and to agree a repayment plan. (Business Times
09-Mar-1999)


LANDMARKS BHD: Unit to settle debt with land in Setapak
-------------------------------------------------------
Landmarks Bhd unit Landmarks Hotels & Realty Sdn Bhd said
it would settle the amount it owes to Pembinaan Mitrajaya
Sdn Bhd with a piece of land in Setapak.

The settlement agreement signed on March 1 involves the
sale and purchase of a 31,675-sq-metre land owned by
another Landmarks subsidiary PGK Sdn Bhd.

The payment due from Landmarks Hotels to PMJ is for the
construction of the Andaman Hotel in Langkawi.

In a statement to the KLSE on Mitrajaya's behalf, Signet &
Co said PMJ--Mitrajaya Holdings' wholly-owned subsidiary--
agreed to waive all its rights in the settlement amount.

Meanwhile, Landmarks Hotels would procure that PGK would
sell the land to Kina-Bijak Sdn Bhd, a wholly-owned
subsidiary of Mitrajaya Holdings Bhd. Pembinaan Mitrajaya
guaranteed Kina-Bijak's purchase of the land at RM14.5mil.

The proposed acquisition of the land would not entail any
cash movement as the price would be set-off against the
settlement amount.

On the completion date, the price of RM14.5mil shall be
treated as paid by Kina-Bijak by treating the settlement
amount as being waived and released by Pembinaan Mitrajaya
and, as such, the settlement amount and the price would be
considered paid in full. (The Star Online 10-Mar-1999)


MBF HOLDINGS: Modifies debt restructuring proposal
--------------------------------------------------
Malaysian trading and financial group MBf Holdings Bhd
(MBFGF) has announced a modification to its earlier
proposed debt restructuring exercise, announced on Jan 29
involving the company and selected units.

In a statement released on Tuesday, MBf Holdings said the
revised debt restructuring plan will involve a reduction
and consolidation of share capital, a reduction in share
premium and warrants issues.

Under the updated proposal, MBf Holdings said its share
capital will be reduced to RM191.8 million comprising 1.15
billion shares from RM575.5 million of 1.15 billion shares
as opposed to RM287.727 million comprising 1.15 billion
shares.

The 1.15 billion shares at 16.7 sen each will be
consolidated to 191.8 million shares of RM1.00 each on the
basis of six shares for every one held as opposed to the
previous four shares for every one held, MBf Holdings said.

MBf Holdings added that the reduction in share capital will
provide a credit of RM383.6 million which can be used for
scaling down accumulated losses in 1998.

MBf Holdings' share premium account will also be reduced to
offset the accumulated losses of the company and this
offsetting will not be more than the outstanding amount in
the share premium account as at Dec 31, 1998.

A warrant issue will also be carried out on the basis of
one for every three shares held by existing shareholders
upon completion of the proposed reduction in share capital
and proposed consolidation.

These new proposals on the reduction of share premium
account and warrants issue were not included in the
previous debt restructuring plans, MBf Holdings said.

Meanwhile, the off-shore scheme under the new restructuring
plan was also modified with MBf Holdings to acquire a 96%
stake or 480 million shares in Australian-based MBf
Carpenters Ltd for RM156.9 million from MBf Asia Capital
Corp Holdings as opposed to 479.8 million.

The debt owed by MBf Holdings to MBf Asia Capital Corp
Holdings and MBf Asia Capital Corp Ltd will be sold to a
new company which will be incorporated in Hong Kong, the
company added.

The effects of the new restructuring plan on the company's
net tangible assets and gearing will be announced later.
(Bernama and The Star Online 10-Mar-1999)


PARIT PERAK HOLDINGS: Asset sales to prevent further losses
-----------------------------------------------------------
Parit Perak Holdings Bhd (PPHB) and its subsidiary have
entered three separate agreements to dispose of its entire
shareholdings in three companies to prevent further losses
for the group and provide an opportunity to explore other
viable business opportunity to increase and broaden the
earning base of the group.

Under one of the agreement, PPHB will dispose its entire
interest in PPHB Capital Sdn Bhd to Rasmi Mayang Sdn Bhd
for RM250,000 in cash.

PPHB's subsidiary, Ideal Dynasty Sdn Bhd has entered into a
sale and purchase agreement to dispose its interest in
Masterview Investments Pte Ltd to Richland Investment Ltd
for RM10,000.

Meanwhile, another subsidiary of PPHB, PPHB Equities BVI
Inc will dispose its stake in PPHB Investment Pty Ltd to
Richland Investment Ltd for RM45,000 in cash.

Proceeds from the disposals will be used as working capital
for the group.

The disposals are not expected to result neither a gain nor
a loss for the group.

The disposals were a result of the current economic
downturn which has adversely affected the performance of
PPHB group reporting losses for the financial year ending
June 30 1998. The group expects to record further losses
the six months ended December 31 1998 due to further
diminution of investment and losses in the money lending
business of PPHB Capital. (Business Times 09-Mar-1999)


RENONG BHD: Analysts praise restructuring
-----------------------------------------
Stock market analysts yesterday welcomed a proposed $2.2
billion debt restructuring of conglomerate Renong Bhd but
said questions lingered over the nitty gritty of the deal.

Renong, Malaysia's biggest corporate borrower, on Monday
announced a debt restructuring plan that avoids use of
public money but relies heavily on the economy's recovery.

Analysts said on paper, the deal would benefit Renong and
UEM creditors and Renong shareholders. Whether UEM
shareholders have a good deal or not depends on what assets
they can realise from Renong," one analyst said.

Phuah Kee Kerk, head of research at Jupiter Research, said
share investors were looking for earnings growth as well.

"Investors will be asking how Renong is going to generate
cash other than selling its assets in order to pay back to
PLUS," he said.

One surprising element of the deal was that Renong and UEM
creditors will be repaid in full, analysts said.

"No hair-cuts required," said another analyst. "I think the
government wants to send the message that creditors,
including foreign creditors, will get back what is owing to
them. Shareholders will bear the brunt of the losses."

"You see the first salvo in a process in trying to woo back
foreign investors to Malaysia," Chris Tinker of Credit
Lyonnais in Hong Kong told Reuters Television. (Reuters and
Business Day [Thailand] 10-Mar-1999)


SUASA UNIK: Negotiating settlements with creditors
--------------------------------------------------
Suasa Unik (M) Sdn Bhd, had on February 12 1999 received
the first draft from the independent financial adviser's
diagnostic review. Once the review is agreed by Suasa Unik,
it will be submitted to CDRC.

Meanwhile, Suasa Unik is in the process of negotiating
settlements with some of its creditors and has reached an
amicable settlement with Pinewell Engineering Sdn Bhd.
(Business Times 09-Mar-1999)


TRONOH MINES: Awaits decision on loans
--------------------------------------
Tronoh Mines Malaysia Bhd is still awaiting decision from
the Corporate Debt Restructuring Committee (CDRC) of Bank
Negara with regards to the rescheduling of its non-
performing loans with its creditors. (Business Times
09-Mar-1999)


WESTMONT INDUSTRIES: Seeks extension on creditors' meeting
----------------------------------------------------------
Westmont Industries Bhd's application for the extension of
time to hold the formal creditors' meeting pursuant to
Section 176 of the Companies Act 1965 was adjourned and the
application is now fixed for hearing on April 2 1999.

Meanwhile, the court has granted the extension of the order
dated August 13 1998 up to April 2 1999. The restraining
order is thus valid and effective until such time the
schemes of arrangement are sanctioned by the
court.(Business Times 09-Mar-1999)


YUNG KONG: Reports lower profit
-------------------------------
Yung Kong Galvanising Industries Bhd has reported a 53%
drop in group pre-tax profit to RM4.088mil for the
financial year to Dec 31, 1998, from RM8.728mil a year
earlier.

Volatile foreign exchange rates, high interest rates,
reduced consumption and increased costs had adversely
affected the group's performance, the second board_listed
company said when announcing its preliminary results.
It said group sales dropped 19% to RM78.405mil last year
from RM97.066mil previously.

At company level, the pre-painted galvanised sheet producer
posted a pre-tax profit of RM3.866mil, down 46% on
RM7.113mil in 1997. Sales fell 19% to RM76.458mil from
RM94.286mil. (Bernama and The Star Online 10-Mar-1999)


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

AIRCRAFT FINANCING: PAL creditor demands three aircraft
-------------------------------------------------------
Another creditor of Philippine Airlines (PAL) has sought
the help of the Securities and Exchange Commission (SEC) to
recover three aircraft leased to the debt-ridden airline.

In a filing with the SEC, Aircraft Financing and Trading
B.V. asked the SEC to direct PAL to surrender the three
remaining aircraft which the airline promised to return as
part of the lease termination agreement they entered into
in Oct. 7 last year.

Aircraft Financing also asked SEC's help in enforcing other
provisions of the termination lease agreement to help it
finance its capital expenditures since it is also
experiencing cashflow problems as a result of PAL's default
on its obligations.

"Aircraft Financing is starting to show signs of financial
distress as a direct consequence of PAL's inability to
fulfill its obligations. The intervenor is after all a
medium-sized aircraft leasing company with one-third of its
entire fleet being leased to (PAL). Every single day of
delay on the part of (PAL) in the fulfillment of its
obligations wreaks havoc upon the intervenor's operations
and finances," Aircraft Financing said. (The Manila Times
10-Mar-1999)


PHILIPPINE AIRLINES: Creditor seeks return of 3 aircraft
--------------------------------------------------------
Another creditor of Philippine Airlines (PAL) has sought
the help of the Securities and Exchange Commission (SEC) to
recover three aircraft leased to the debt-ridden airline.

In a filing with the SEC, Aircraft Financing and Trading
B.V. asked the SEC to direct PAL to surrender the three
remaining aircraft which the airline promised to return as
part of the lease termination agreement they entered into
in Oct. 7 last year.

Under the agreement, PAL was to return six out of nine
Fokker planes to Aircraft Financing as soon as the deal is
signed. "So far, only six aircraft had been returned to
Aircraft Financing.

Aircraft Financing also asked SEC's help in enforcing other
provisions of the termination lease agreement to help it
finance its capital expenditures since it is also
experiencing cashflow problems as a result of PAL's default
on its obligations.

"Aircraft Financing is starting to show signs of financial
distress as a direct consequence of PAL's inability to
fulfill its obligations. The intervenor is after all a
medium-sized aircraft leasing company with one-third of its
entire fleet being leased to (PAL). Every single day of
delay on the part of (PAL) in the fulfillment of its
obligations wreaks havoc upon the intervenor's operations
and finances," Aircraft Financing said.

The leasing firm said PAL reneged on its legal, binding and
enforceable undertaking to negotiate in good faith with
them on the settlement of its obligation as lessee.

Under the agreement, PAL must pay Aircraft Financing all
unpaid rent from June 1998 to the present, all expenses
incurred corresponding to its ferry flight to the
Netherlands and maintenance compensation on the engines to
the aircraft, and all amounts due under the spare parts
lease agreement.

To date, Aircraft Financing has foregone over $2 million in
terms of unpaid rentals corresponding to the six aircraft
subject to the termination agreement. It has also waived
default interest owed by PAL in the amount of over $77,000.

PAL earlier made a token payment in the amount of $37.9
million to the US-Export Import Bank and the Export Credit
Agencies of Europe to avoid the seizure of its aircraft.
These creditors had demanded an initial payment from PAL.

The leasing firm said PAL has ignored its efforts to obtain
any assurance of fair and reasonable concessions from the
airline in the payment of its obligations. (The Manila
Times 10-Mar-1999)


PILIPINO TELEPHONE: SEC to probe Piltel debt
--------------------------------------------
The Asian Wall Street Journal reported that the Philippine
Securities and Exchange Commission (SEC) is commencing an
investigation into the debt problems of the Pilipino
Telephone Company (Piltel), the mobile-telephone unit of
the Philippine Long Distance Telephone Company (PLDT). A
letter to Piltel from the SEC stated that the investigation
is to determine whether or not the Piltel has complied with
disclosure rules regarding its financial health.

The article stated that the SEC was surprised with the new
management of the Piltel's announcement to restructure 34.9
billion pesos in debt. First Pacific Company of Hong Kong
acquired PLDT, which owns 50.1% of Piltel, in a hostile
take over in December.  

In a related matter, PLDT's chairman has offered to put up
assets to back the Piltel's debts owed to local banks.  
This fulfills a central bank's requirement that bank loans
be backed with assets in order to prevent them from being
declared as bad. The article further stated that the Piltel
has stopped servicing its debts.

Earlier reports stated that most of Piltel's loans are
unsecured, and that it could not make a recent loan payment
to Marubeni Corporation of Japan. Marubeni supplied and
installed Piltel's fixed line network and is owed around 11
billion pesos by the phone company. About one-third of
Piltel's debt are loans from the Marubeni Corporation,
another third from a syndicate of banks, and the rest is in
the form of convertible bonds.  

Piltel, which has the second largest subscriber base in the
Philippines, has reportedly had trouble with subscriber
fraud and heavy debt payments.  


SERG'S PRODUCTS: Junk motion vs. debt relief
--------------------------------------------
Serg's Products Inc. has asked the Securities and Exchange
Commission to junk a motion filed by its creditor banks
opposing its petition for suspension of debt payments.

Serg's creditors alleged that the company included in its
list of assets properties owned by a third party and that
it did not state the real value and area of some of its
property.

The creditor banks opposed to the plan include PDCP Bank,
First Metro Investment Corp., Development Bank of the
Philippines, SolidBank, and Metropolitan Bank & Trust Co.

Serg's, the country's biggest chocolate confectionery
manufacturer, sought reprieve from the SEC on its P2
billion loans due to tight liquidity problems.

In a filing with the SEC, Serg's insisted that it never
made any representation, pointing out the creditor banks
have accepted the properties being questioned as collateral
of the loans extended to the chocolate maker.

"After accepting the property and transacting with (Serg's)
on the basis thereof, the banks cannot now say that they
are not aware of the true ownership of the property even if
they are in name of other persons," Serg's said in its
filing with the SEC.

The company also denied allegations that its financial
difficulties had been caused by gross mismanagement. It
blamed its debt woes on the peso's fall.

Creditor banks said Serg's is not entitled to debt relief
as it is insolvent and that the financial difficulty had
been caused by mismanagement.

The banks said the value of the properties which Serg's
represented belong to it, when in fact they belong to other
persons and entities, is less than its liabilities.
"Valuations were unnecessarily increased thereby creating a
mistaken impression that Serg's has more assets than
liabilities when in truth (it) is already insolvent and
thus, not entitled to the relief of suspension of payment."

Excluding the amount of properties which are owned by other
persons, Serg's has assets of only P1.87 billion, which is
P31.17 million less than its total liabilities of P1.9
billion.

Under the rules governing petitions for suspension of
payments, an applicant must have sufficient assets to cover
all its debts and must disclose all its liabilities in
order to be entitled to debt relief.

The banks also claimed that Serg's grossly overstated its
cash deposits with the Philippine Commercial International
Bank by P24.97 million and that did not make a complete and
accurate disclosure of all its liabilities.

In its petition with the SEC, Serg's said although it has
sufficient assets to cover its liabilities, it finds it
impossible to meet its debt payments when they fall due
owing to financial constraints brought about the region-
wide financial crisis that compelled banks to restrict
credits.

Rizal Commercial Banking Corp. is Serg's biggest creditor
with a loan exposure of P89.41 million. (The Manila Times
10-Mar-1999)


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

PROPERTY PERFECT: Seeks help to pay back debts
----------------------------------------------
In a bid to restructure its 10 billion baht debt, listed
developer Property Perfect Plc said yesterday it was
willing to consider any kind of joint venture with a new
partner.

According to the company's chief executive officer, Chanid
Sirimanee, the company was studying possible options, such
as a debt for equity swap and a new share issue, to bring
in either a local or foreign partner.

"We are open to any kind of venture with a new partner, but
it depends on restructuring our existing debt."

The company has appointed investment bank J.P. Morgan to
develop a debt restructuring plan and negotiate with
creditors.

"It takes time to restructure the debt as some of it is
held by the Finance Restructuring Sector Authority. It also
depends on the economic reform bill."

Seventy percent of Property Perfect's 10 billion baht debt
is owed to local creditors and 30% to foreign banks.
(The Bangkok Post 10-Mar-1999)


SHINAWATRA COMPUTER: Shinawatra name changes win approval
---------------------------------------------------------
Shareholders of Shinawatra Computer and Communications have
approved the change of the company's name to Shin
Corporation Public Co Ltd, in line with its new status as a
holding company.

Shin Corp will continue to be a shareholder in its
affiliates and will also act as an investment management
company in the telecoms industry.

Somprasong Boonyachai, president of Advanced Info Service,
the country's largest mobile-phone operator, said the AIS
board also agreed to change the name of its affiliate,
Shinawatra Wireless Marketing, to Advanced Wireless
Marketing. It markets and sells mobile phones for AIS.
As well, the name of Shinawatra Paging, operator of the
Phonelink paging service, will be changed to Advanced
Paging. (The Bangkok Post 09-Mar-1999)


THAI MODERN: Guarantors of plastic firm face big bill
-----------------------------------------------------
Major shareholders of Thai Modern Plastic Industry, one of
the companies undergoing debt restructuring, may find it
difficult to avoid responsibility for personal guarantees
of the firm's combined debt of Bt11.83 billion, one of its
creditors says.

As the loans are off the balance sheet, shareholders will
be unable to seek repayment from the company.

Of the Bt11.83 billion in debts that the major shareholders
(including the Pannamaneechote family, who hold 60 per cent
of the Bt585-million equity) guaranteed to assist the
company financially, Bt4.98 billion (US$124.5 million) is
dollar-denominated, with the remainder in baht.

Shareholders involved in the guaranteed loans are Jitra
Pannamaneechote, Aram Pannamaneechote, Nomjit
Pannamaneechote, Jit-aram Pannamaneechote, Panich
Pannamaneechote, Panich Pannamaneechote, P Jit-aram Co and
Prasit Pornpaitoon.

"Under the bankruptcy law, creditors will have to seek
repayment for debts off the balance sheet from the
guarantors," a source said.

TMC officially owes Bt8.02 billion to 176 foreign and local
banks as well as Bt59 million in trade receivables. The
debt-restructuring plan, drafted by South Sathorn Planner
Co and supported by five major creditors, will be discussed
at a creditors' meeting on March 16. The five major
creditors are Credit Agricole Indosuez, ING Bank,
Development Bank of Singapore, Schroder International
Merchant Bankers and Thai Danu Bank, which lent a total of
Bt955 million. The Bangkok branch of Citibank and Bangkok
Bank loaned Bt487 million together.

South Sathorn Planner Co outlined two options, selling new
shares or the sale of assets to new partners. It also
proposed delisting to facilitate the debt- restructuring
process, according to the source, who added that over the
past eight months South Sathorn Planner Co had also been
negotiating with potential partners for equity
participation.

"The first option seems the more feasible, but it is more
likely that investors will opt to buy assets rather than
new shares," he said.

At the end of 1998 TMC's assets totalled Bt6.72 billion
while its liabilities stood at Bt7.98 billion.

Shareholders' equity is minus Bt1.26 billion while the net
loss for the year hit Bt644 million, sending the
accummulated losses to Bt1.39 billion.

The creditors filed a petition for debt restructuring after
the company failed to repay loans on several occasions,
reflecting financial problems. However, South Sathorn
Planner Co estimates that the company's cash flow was still
sufficient at Bt62.8 million in Aug 1998 and the company
will not have to seek capital from creditors. The company
also expects that the plastic-products manufacturer will
record net cash of Bt73.27 million at the end of 2000,
Bt21.66 million in 2001, Bt41.81 million in 2002, Bt46.68
million in 2003 and Bt51.46 million in 2004.

The planner also proposed that bank creditors could ask for
immediate repayment at Bt0.01 for every Bt1 of debt and
trade-related creditors at Bt0.10. However, those involved
in the restructuring plan will receive amounts according to
the size of their loans.

Under the plan, a special-purpose vehicle will be
established to receive all the debts from TMC and
distribute repayments to all the creditors. Foreign
creditors encountering legal problems can claim via SPV II,
which will be wholly owned by SPV I. (The Nation
10-Mar-1999)


THAI OIL: PTT ready to issue $240m bond by mid-year
---------------------------------------------------
The national oil firm Petroleum Authority of Thailand (PTT)
plans to issue $240 million bond, the first batch of $350
million yen-dominated bond, and 7-billion baht bond by the
middle of this year, said PTT Deputy Governor Pichai
Chunhavajira.

The capital raised will be allocated to support PTT's
planned investment of about 33 billion baht this year,
especially the Ratchaburi-Wang Noi gas pipeline project.

The remaining yen-dominated bond will be used in solving
financial difficulties of its subsidiary, Thai Oil. Thai
Oil, an operator of Thailand's largest refinery, has
restructured its $1.9 billion debt after the company
announced a debt moratorium in late 1998.

PTT, which holds 49 percent in Thai Oil, targets to reduce
Thai Oil's outstanding debt by $1-1.2 billion before
raising its capital by $800 million from the existing 20
million baht.

PTT is considering two options to restructure debt of Thai
Oil, including seeking strategic partner or converting debt
to equity.

However, seeking new partners is difficult to do amid
current economic situation, said Pichai, adding that
interested investors are waiting for the completion of Thai
Oil's debt restructuring.

"If the capital increase and conversion of debt to equity
are considered insufficient for Thai Oil's survival,
creditors must have to agree to a hair-cut," said Pichai.
(Business Day [Thailand] 10-Mar-1999)


THAMMATANI CO: Debt talks going slowly
--------------------------------------
Thammatani Co, developer of the Elephant Tower near the
Ratchayothin intersection, is negotiating an 800-million-
baht debt restructuring plan with Krung Thai Bank (KTB).

"We began talks with Krung Thai Bank last August but our
debt restructuring plan has not progressed well because of
changes in the bank's organisation," said Dr Piyawat
Chaiseri, the company's managing director.

However, the two sides are now trying to accelerate the
restructuring plan. The developer has already proposed
several options including a debt swap for space in Elephant
Tower, or an equity swap in Thammatani.

Dr Piyawat is confident the restructuring plan will be
approved by KTB this year.

Thammatani, an affiliate of the well-known Arun Chaiseri
Consulting Engineers, borrowed 1.3 billion baht from KTB in
1993. The five-year loan was due to be repaid last year.

In addition to the debt owed to KTB, the company owes a
further 260 million baht to Sitca Investment and Securities
Plc, which was closed by the government in late 1997.

Dr Piyawat said the closure of the 56 finance firms not
only cut credit lines for the firm but also led to
cancellation of an office purchase.

Sitca had agreed to purchase between 8,000 and 10,000
square metres in one of the three towers in the Elephant
complex. Although the contract was signed, the company was
ordered closed before ownership could be transferred.

"The case with Sitca created many problems for us. Now we
have to try and sell it again," he said. "We have been
contacted by some foreign investors to buy our office
space. But they won't make a deal until they know the
result of our loan auction to be held by FRA this month."
(The Bangkok Post 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

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