---

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      

      Monday, March 15, 1999, Vol. 2, No. 51

                    Headlines


* C H I N A   &   H O N G   K O N G *

FORLUXE SECURIITES: Brothers given say over loans
FOUR SEAS TRAVEL: Four Seas Travel in rough water
FUJIAN ENTERPRISES: Announces lenders' meeting
INTERFORM CERAMICS: Rescue bid in debt restructuring snag
MATRIX HOLDINGS: Matrix in final bid for survival

PEREGRINE GROUP: Courts to study Peregrine costs
Q-TECH HOLDINGS: Reorganisation helps raise fortunes
THEME INTERNATIONAL: Theme upbeat despite order
WAH NAM TRAVEL: Troubled travel agency hangs on


* J A P A N *

HASEKO CORP: May sell hotel group
NISSAN MOTOR: Moody's cuts Nissan debt to junk status
NISSAN MOTOR: Stocks plunge as foreign suitors turn away


* K O R E A *

HANYOUNG REMICON: Starts creditor reconciliation
KIA MOTORS: FTC to approve Hyundai-Kia merger
KOREA LIFE: MetLife front runner in Korea Life bid
SSANGYONG GROUP: Sells refiner unit to SK


* M A L A Y S I A *

PARK MAY: Defaults in repayment of RM135m loan
RENONG BHD: EPF may subscribe to PLUS bonds


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

NATIONAL STEEL: Renong affiliate posts huge losses
PILTEL: SEC plans to suspend trading of Piltel shares
STANFORD RESOURCES: Developer suspends debt payments


* S I N G A P O R E *

KEPPEL HITACHI ZOSEN: KHZ hit by nine-month loss


* T H A I L A N D *

CHAO PHRAYA FINANCE: Former execs to face prosecution
KASET THAI: Investors' confidence affected by murder
KR PRECISION: Shares slide amid rifts
QUALITY HOUSES: QH fails to win nod for debt revamp
RANGSIT PLAZA: Rangsit Plaza set for debt revamp

SIAM CITY CEMENT: SCCC takeover by Holderbank looms
SRITHAI SUPERWARE: To sign debt deal by end of month
THAI OIL: Thai Oil debts for conversion
THAI TELEPHONE: Magazine should apologise


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

FORLUXE SECURIITES: Brothers given say over loans
-------------------------------------------------
According to the South China Morning Post, debts of $32.6
million allegedly illegally obtained from Forluxe
Securities by former director James Mui Kwong-nok and his
brother Gordon Mui Kwong-yin are set to be the focus of a
court clash with liquidators.

The company was forced into liquidation in May last year.

According to provisional liquidators Nelson Wheeler
Corporate Reconstruction and Insolvency, the $32.6 million
represents money from directors' loans accounts.
Liquidators allege a total of $34.2 million worth of shares
and $6.97 million in cash was embezzled from Forluxe by
the brothers over the space of three years.

The brother, along with James Mui's wife Peggy Lee Yui-
ping, have been granted leave by the Court of First
Instance. They have just over a week to prepare their case
before it returns to the courts.


FOUR SEAS TRAVEL: Four Seas Travel in rough water
-------------------------------------------------
According to the South China Morning Post, Four Seas Travel
International's unaudited consolidated loss attributable to
shareholders for the nine months to December 31 was $99
million. This was unveiled in a circular, which was
despatched to shareholders yesterday, in response to the
unconditional cash offers by South China Strategic
Investments.


FUJIAN ENTERPRISES: Announces lenders' meeting
----------------------------------------------
According to the South China Morning Post, the Hong Kong
investment arm of the Fujian provincial government, Fujian
Enterprises will hold a lenders meeting on March 26 on its
restructuring plan and appointment of a financial adviser.
Observers say recent official comments on restructuring may
represent a change of heart in Beijing on concerns about
the consequences of the debt crisis gripping corporates.


INTERFORM CERAMICS: Rescue bid in debt restructuring snag
---------------------------------------------------------
According to the South China Morning Post, the rescue plan
for Interform Ceramics Technologies has hit a snag, with
the parties involved unable to reach an agreement on all
the terms related to its debt restructuring.

Potential rescuer China Wealth Group, Interform and
creditor banks of Interform are in negotiation about the
terms of the restructuring. China Wealth and Interform
entered a second supplemental agreement on Wednesday, which
postponed the latest date for execution of the debt-
restructuring agreement from Wednesday this week to March
17.


MATRIX HOLDINGS: Matrix in final bid for survival
-------------------------------------------------
According to the South China Morning Post, giftware maker
Matrix Holdings said yesterday it would be wound up if it
fails to secure fresh funding.

The company said it was suffering chronic cash flow
problems which had left its business dormant and staff
unpaid.

It has been hit by seven court writs claiming $9.1 million
by trade and leasing creditors.

Executive director Alexander Lam Kit said three out of five
executive directors had resigned because of unpaid salaries
since January. All but a few staff have stopped working.

He said the company had hired a financial adviser and was
holding talks with potential investors over a proposed
restructuring of the company and the result of the talks
would be relayed to creditors during the next couple of
days.

Matrix sells 90 per cent of its products to the United
States. Its financial woes were triggered by the departure
of its largest client last year.

The company tried to streamline operations during the third
quarter of last year by cutting about 70 jobs out of about
220.

An unnamed staff member said the company, which has more
than 75 per cent of its products plastic-based, had been
slow to adapt to market changes in the US, where buyers are
sourcing fewer plastic-based gift items.

The company made ill-fated attempts to diversify into
porcelain-based products in 1997, but orders were
disappointing.


PEREGRINE GROUP: Courts to study Peregrine costs
------------------------------------------------
According to the South China Morning Post, the courts will
scrutinise the legal costs of Peregrine Group liquidation
totalling $15.1 million for the first three months. A
preliminary hearing will be conducted on March 26. Law firm
Clifford Chance commenced the taxation proceedings at the
suggestion of the courts.

According to the Hong Kong Standard, PricewaterhouseCoopers
said Clifford Chance had issued three summonses for a total
claim of $15.12 million -- a $3.6 million liquidation fee
for Peregrine Investments Holdings, $2.92 million for
Peregrine Derivatives, and $8.59 million for Peregrine
Fixed Income.

PricewaterhouseCoopers partner in charge of the liquidation
said there was no dispute between the accounting firm and
Clifford Chance over the legal fees.

He said the legal firm commenced the taxation proceedings
at the suggestion of the court. The provisional liquidators
are named as respondents purely to comply with procedural
requirements.

Clifford Chance said the legal action was normal procedure
to obtain formal approval of fees.


Q-TECH HOLDINGS: Reorganisation helps raise fortunes
----------------------------------------------------
According to the South China Morning Post, Q-Tech Holdings'
chairman said that the company's financial position has
improved following a capital reorganization and the
recruitment of a new shareholder.

He said in an extraordinary general meeting yesterday the
company would use $20 million form the proceeds of a $35
million rights issue to offset bank borrowings, with the
remaining $15 million as general working capital. He said
the company would also work harder to recover cash from the
doubtful debts.

The company had bank debt of $29 million and was in
negotiations with four banks over debt restructuring after
six banks pulled their credit lines. Account receivables
hit $200 million in June last year, mainly as a result of
mainland wholesalers who failed to pay.

The company's financial position improved after Thakral
Corp (HK) took a 9.6 per cent stake last December.

The company's vice chairman said Q-Tech would diversify
investments into airport or highway construction if good
opportunities arose.


THEME INTERNATIONAL: Theme upbeat despite order
-----------------------------------------------
According to the South China Morning Post, ailing Theme
International Holdings believes the liquidation of its
indirect wholly owned subsidiary Shop Clothing will not
have material adverse impact on its financial position. The
company said yesterday the only guarantee it had provided
to Shop Clothing was on an estimated $991,000 of
liabilities and neither the company nor its subsidiaries
had provided any other guarantees.

Shop Clothing might file an appeal against the winding up
order made on Wednesday or apply to convert the more
procedurally cumbersome compulsory winding-up into a
creditors' voluntary liquidation to save costs and
expenses.


WAH NAM TRAVEL: Troubled travel agency hangs on
-----------------------------------------------
According to the Hong Kong Standard, Wah Nam Travel Service
handed back a Travel Council stamping machine from its
North Point branch upon its closure on Monday. A spokesman
of the council said handing back a stamping machine had no
implication of a potential collapse. An agency could keep
operating if its membership remained valid, and customers
could have their receipts stamped at the council office.

Travellers with package tour receipts bearing the stamp are
protected by the council, which will refund half of the
tour price in cases of cancellation.

Wah Nam, which has been doing business while undergoing
debt restructuring, told the council that all tours would
depart as scheduled.

The company's Tsim Sha Tsui manager, who according to the
Travel Council's spokesman, is also an owner of the
company, said the company is not winding up but business
had been hit seriously by Asia's economic troubles with its
number of branches reduced from 12 at the end of December
1997 to two this month and further down to one when the
North Point branch closed on March 8. She said the company
would continue to do business and the management was
working on a debt restructuring proposal. She refused to
reveal the financial status of the company but said it had
repaid its debt on time by selling assets.

The agency began in 1980 and concentrated on mainland
tours, with its customers mostly companies.

The Travel Agents Registry of the Trade and Industry Bureau
has said that it would be monitoring the Wah Nam situation
closely.


=========
J A P A N  
=========

HASEKO CORP: May sell hotel group
---------------------------------
Haseko Corp. (1808 JP ) rose 11 yen, or 21.6 percent, to 62
after a Japanese newspaper's report the company may sell
its hotel group to East Japan Railway Corp. as a part of
its restructuring drive. (Bloomberg 12-Mar-1999)


NISSAN MOTOR: Moody's cuts Nissan debt to junk status
-----------------------------------------------------
The Asian Wall Street Journal reported that Moody's
Investor Services has downgraded the long-term debt ratings
of Nissan Motor Company from Baa3 to Ba1, a level
considered below investment grade. This rating is also
under review for further possible downgrade.

Moody's stated that the primary reason for this downgrade
was that the benefits from the company's restructuring
efforts will be negated by it growing need to increase
spending for production development.  

Nissan's total debt was estimated to be 2.5 trillion yen.


NISSAN MOTOR: Stocks plunge as foreign suitors turn away
--------------------------------------------------------
Japan's Nissan Motor Co. Ltd. stumbled on the Tokyo stock
market yesterday as its potential marriage partners
dwindled to just one suitor, France's Renault SA.

After 10 months of intensive negotiations with Nissan, the
US-German auto giant DaimlerChrysler AG has broken off
talks, saying it was no longer interested in buying a slice
of the Japanese firm.

Shares in Nissan, which is saddled with heavy debts,
promptly tumbled on the Tokyo market, closing the morning
down 10.9 percent at 419 yen (3.5 dollars).

"We will positively consider tie-ups with other companies,"
said Yoshikazu Hanawa, president of Japan's second largest
automaker.

But analysts warned the hurdles which scuppered a deal with
DaimlerChrysler will cast a dark shadow over any
negotiations. (Agence France-Presse and Business Day
[Thailand] 12-Mar-1999)


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

HANYOUNG REMICON: Starts creditor reconciliation
------------------------------------------------
The Seoul District Court advertised in the Korean language
Maeil Kyungje that the Hanyoung Remicon Company started its
creditor reconciliation procedure. The creditors have until
April 8th, 1999 to file their claims. The company's address
is 5-1 Pangch'uk-ri, Kangt'an-myon, Paju-shi, and the
president is Mr. Han Heung-shik.


KIA MOTORS: FTC to approve Hyundai-Kia merger
---------------------------------------------
The Fair Trade Commission (FTC) will decide whether to
approve Hyundai Motor's merger with Kia and Asia Motors
next week.

An FTC spokesman said that it is most likely the merger
will be endorsed because it would do more good than harm
for the auto industry.

Hyundai will control 55 percent of the passenger car market
and 95 percent of the truck market with its takeover of Kia
and Asia Motors.

The merger will obviously bring about ill effects from the
giant automaker's monopoly, whereas it will take the effect
of strengthening the nation's competitiveness in
international market, he noted.

He also said that the FTC would have no choice but to
approve the merger plan in that Hyundai is taking over an
insolvent firm under the court's approval.

The Hyundai-Kia merger, a landmark deliberation involving
the corporate merger review for the commission, is expected
to serve as a model for other big business swaps, dubbed
"big deals," still in the making. (The Korea Times
12-Mar-1999)


KOREA LIFE: MetLife front runner in Korea Life bid
--------------------------------------------------
Leading U.S. insurer Metropolitan Life Insurance Co. is
still the strongest candidate to take over ailing Korea
Life Insurance Co., a senior official at the Financial
Supervisory Commission (FSC) said Thursday.

"It is a whole different ball game since MetLife is now up
against more competitors for Korea Life, but it's still the
strongest candidate," said Lee Jong-koo, director general
of FSC's financial reform planning and coordination bureau.

Speculation has swirled that the financial watchdog put
Korea Life on the auction block because private talks
between MetLife and Korea Life fallen through, and that
MetLife was no longer interested.

But Lee said that was not the case.

"MetLife wanted the government's support in the takeover,"
he said. "The only way the government could get involved
was through an open international auction. MetLife will
participate."

Korea Life is the country's third-largest life insurer by
market share. (Reuters 11-Mar-1999)


SSANGYONG GROUP: Sells refiner unit to SK
-----------------------------------------
According to the South China Morning Post and the Hong Kong
Standard, a Ssangyong Group spokesman said yesterday that
an agreement was made between the top management of SK
Group and Ssangyong Group to sell Ssangyong Oil Refining
to SK Group, owner of the country's largest refiner.

A statement from Ssangyong said the official contract would
be signed with SK after consultation with its partner in
Ssangyong Oil -- Saudi Aramco.

Ssangyong Group's 28.4 per cent stake, which is held by its
flagship firm Ssangyong Cement Industrial, has been valued
by some industry analysts at about US$500 million but
others have said this is too high.

According to the South China Morning Post, the statement
said Ssangyong Cement will see a big improvement in its
financial position as its liabilities will be reduced
after selling the stake in Ssangyong Oil.

Analysts said the announcement was premature.

An executive of SK flagship SK Corp said the deal was not
final and there are issues that need to be resolved.

Ssangyong, Korea's third largest oil refiner, has a
capacity of 525,000 barrels per day (bpd) and a 13 per cent
market share, while SK has 810,000 bpd capacity and 34 per
cent share.


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

PARK MAY: Defaults in repayment of RM135m loan
----------------------------------------------
Park May Bhd, a member of the Renong group, has defaulted
in its payment of principal and interest on its RM135.6
million short-term loan facility.

Managing director Mohd Najuib Abu Hasan said in a statement
the company was unable to meet the balance of its first
principal payment of RM3.2 million and interest of RM1
million -- due on March 8.

This has resulted in the entire outstanding principal sum
of RM134.2 million and any interest becoming immediately
due, and also triggered a cross default on another RM10
million facility.

Park May has appointed Commerce International Merchant
Bankers Bhd to assist in its debt restructuring. The
Corporate Debt Restructuring Committee has also been
contacted. (New Straits Times 12-Mar-1999)


RENONG BHD: EPF may subscribe to PLUS bonds
-------------------------------------------
The Employees Provident Fund (EPF) says it may subscribe to
the Projek Lebuhraya Utara Selatan (PLUS) bonds if the
yield is good and the risk low.

EPF executive chairman Tan Sri Sallehuddin Mohamed said the
fund has set aside a large sum of money for corporate
bonds. To date, it has RM25 billion worth of corporate
bonds in its investment portfolio.

The bond issue is part of a debt restructuring plan to help
Renong Bhd and United Engineers (M) Bhd to settle their
debts in full. The bonds to be issued by PLUS, which is
UEM's subsidiary, will be zero-couponed issues of seven-
year tenure with a 10-year yield to maturity per year. It
is the largest bond issue in Malaysia's corporate history.
(Business Times 12-Mar-1999)


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

NATIONAL STEEL: Renong affiliate posts huge losses
--------------------------------------------------
Meanwhile, Bernama reported a Philippine steel firm --
believed to be also a part of Malaysia's troubled Renong
Group -- incurred huge losses last year, due to the effects
of Asia's currency turmoil.

Securities and Exchange Commission documents showed that
unaudited losses of the National Steel Corp, the
Philippines' largest steel firm, amounted to 4.002 billion
pesos (RM400.2 million). The losses, one of the largest
recorded by NSC, reversed the firm's 54.26 million pesos
net profit in 1997.

NSC is majority-owned by Hong Kong-based Hottick Investment
Ltd, reportedly the offshore investment unit of Renong
Group chairman Halim Saad.

Hottick controls about 82.5 per cent of NSC and its
strategic partner, Japan's Marubeni Corp, five per cent.
The rest belongs to Manila's state-run National Development
Co.

Hottick bought its stake in NSC from Wing Tiek Holdings
Bhd, the steel firm's former majority stakeholder.

The documents showed that NSC's net sales in 1998 fell to
8.589 billion pesos from 12.042 billion pesos in 1997.

The NSC, which sells semi-finished steel products, blamed
the regional currency crunch which led to the slack in
demand for its losses. Another reason was the influx of
cheap steel products dumped by China, Japan and South Korea
as a result of the Philippines' import liberalisation
policy.

Interest payments of NSC's 12 billion pesos loans to Manila
banks also accounted for the NSC losses.

The loans were extended by a syndicate of banks led by
three state-run banks -- the Philippines National Bank,
Development Bank of the Philippines and the Land Bank of
the Philippines. Most of these loans, which have a maximum
three-year repayment period, were recently restructured to
enable the NSC to regain profitability.

The restructuring, backed by the Government, called for a
two-year moratorium on the payment of long-term loans and
one-year for short-term loans. (New Straits Times
12-Mar-1999)


PILTEL: SEC plans to suspend trading of Piltel shares
-----------------------------------------------------
The Securities and Exchange Commission (SEC) plans to
suspend the trading of shares of Pilipino Telephone Corp.
(Piltel) in the stock market after the cellular phone
company failed to disclose material information to the
investing public.

SEC chair Perfecto Yasay Jr. yesterday instructed his staff
to study whether there is a need to halt the trading of
Piltel shares on the Philippine Stock Exchange (PSE) due to
the incomplete disclosure of its true financial condition.

"We can order the suspension of trading of Piltel shares as
a measure to protect the investing public because we feel
that up to now disclosures have not been properly made. If
people are trading on account of speculation and the total
absence of disclosures then I think the trading of the
company's shares should be suspended indefinitely until the
proper disclosures have been made," Yasay said.

"If the staff recommends the suspension just to allow
information to be verified, then we will not hesitate to
approve it," Yasay said.

The Philippine Stock Exchange will be directed to freeze
the trading of Piltel shares once SEC decides on the
suspension.

Piltel, the country's second cellular phone company, came
under fire from securities regulators for failing to
disclose the true magnitude of its debts.

On Jan. 25 this year, Piltel informed the PSE that its
total debts including contingent liabilities really
amounted to P34.9 billion. (Manila Times 12-Mar-1999)


STANFORD RESOURCES: Developer suspends debt payments
----------------------------------------------------
The Securities and Exchange Commission has approved the
request of real estate developer Stanford Resources and
Development Corp. to defer payments on debts worth P967.7
million.

In an order issued yesterday, the SEC said all pending
claims against Stanford Resources are suspended for 30
days.

The company was also prohibited from disposing of its
assets and making payments outside of the legitimate
expenses of its business.

A hearing has been set on April 6 to determine whether the
debt suspension order should be extended or not and to
discuss the proposed rehabilitation plan of Stanford
Resources.

The suspension has effectively barred Philippine National
Bank from seizing the property mortgaged by Stanford to the
bank. PNB, which has a loan exposure of P72.44 million in
Stanford Resources, has already sent a notice of public
auction on March 11.

Aside form PNB, other creditors of Stanford Resources
include PhilBank (P117.71 million), China Bank (P78.33
million), AsianBank (P39.27 million), Rizal Commercial
Banking Corp. (P37.26 million), and Westmont Bank (P3.62
million).

Stanford Resources, a developer of residential and
commercial buildings, said that while it has sufficient
assets to pay off all its creditors, it finds it impossible
to meet its debt obligations owing to a severe credit
crunch.

As of end-December last year, the company reported its
assets total P1.52 billion.

The real estate developer said it was compelled to seek
debt relief from the SEC due to tight liquidity problems
brought about by high interest rates and the slump in the
property market.

The company added that a suspension order should be
immediately issued to prevent creditors from initiating
foreclosure proceedings. It said that PNB has already sent
a notice of sale on a property it mortgaged to the bank.

It has also asked the SEC to name a rehabilitation receiver
and/or management committee to oversee its management and
operations so that its business may not be paralyzed and
that the interest of the stockholders, creditors and the
general public may not be prejudiced. (Manila Times
12-Mar-1999)


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

KEPPEL HITACHI ZOSEN: KHZ hit by nine-month loss
------------------------------------------------
Keppel Hitachi Zosen yesterday posted a worse-than-expected
loss of nearly $65 million for the nine months ended
December following further cost overruns and delays in its
building programmes.

The results are mainly for Hitachi Zosen, which in January
this year completed its purchase of the shiprepair and
shipbuilding operations of Keppel Corporation following the
issue of just over 535 million shares at 49.5 cents each to
Keppel. This made Keppel the controlling shareholder of the
merged operations with a 59 per cent stake while Japan's
Hitachi Zosen holds 29 per cent.

KHZ had said in its interim results for the four months to
end-July last year, when it announced an operating loss of
$24.1 million, that the provisions for additional costs due
to project delays were adequate. Obviously, this was not
the case. (Singapore Business Times 12-Mar-1999)


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

CHAO PHRAYA FINANCE: Former execs to face prosecution
-----------------------------------------------------
The Attorney General's Office will prosecute former
executives of the now-defunct Chao Phraya Finance and
Securities Co on charges of mismanagement.

The move overrules an earlier decision by police to drop
the case.

The five suspects are Vinai Phataraprasit, younger brother
of Deputy Transport and Communications Minister Pradit
Phataraprasit; Charnchai Tulyasathien, Preecha Jarungkit-
anant, Somsak Tangsitthichoke and Ek Picharnchitr.

They will be charged with abusing their authority while
they were running Chao Phraya Finance, of which the
Phataraprasits were the major shareholders.

They were accused of approving loans to several borrowers,
even though the borrowers had not provided worthy
collateral against their loans.

The case is pending in court. (Bangkok Post 11-Mar-1999)


KASET THAI: Investors' confidence affected by murder
----------------------------------------------------
The Government must reveal all the facts on the shooting of
Australian rehabilitation planner Michael Wansley in order
to restore investors' confidence, according to a senior
official at the Justice Ministry Wisit Wisitsor-at.

"The legal process surrounding the case must go on, but it
is also important to realize that confidence of creditors
and foreign investors have certainly been shaken," he said.

A source from the Industry Ministry said that Deloitte
Touche Tohmatsu is considering withdrawing from its role as
a rehabilitation planner. The consulting firm gave no
indication that it would pull out, however.

A team of Australian insolvency advisers was evacuated from
a central Thai province to Bangkok and placed under 24-hour
security after the murder.

"The security has been increased, they now have 24 hour
security and the individuals are now assessing whether or
not they will leave," a Deloitte spokeswoman said.

An officer from Siam City Bank (SCIB) said the tragic
shooting of Wansley would not to have much impact on three
sugar mills' rehabilitation plan.

"The plan must go on as the business has a promising
prospects once it is successfully rehabilitated," he said.

Michael Wansley, 58, from Melbourne was shot eight times on
Wednesday on his way to Kaset Thai Sugar Mill in Nakorn
Sawan, some 240 kilometers north of Bangkok.

Wansley was working for consulting firm Deloitte Touche
Tohmatsu. He is a leader of the Austrian Deloitte team
preparing a rehabilitation plan for three financially
troubled sugar mills.

The three mills which include Kaset Thai Sugar, Ruamphol
Enterprise, and Thai Identity Sugar have a combined debts
of $450 million.

Majority-owned by Siriviriyakul family, the three mills
employ about 3,000 people and purchase raw material from
11,000 planters, mainly in northeast of Thailand. (Business
Day [Thailand] 12-Mar-1999)


KR PRECISION: Shares slide amid rifts
-------------------------------------
Shares of K.R. Precision Plc, an assembler of parts for
computer disk drives, plunged to a record low yesterday
before recovering slightly yesterday amid rifts between the
management and the company's auditors over the firm's
business prospects.

K.R. Precision's board meeting last week objected to a
statement by its auditor that said the company may face
bankruptcy.

"We're actually in pretty good shape. The auditor himself
hasn't come to see us in more than a year," finance
director Luca Roveda said yesterday.

But the ability of K.R. Precision to continue as a going
concern is questionable, Sa-ngah Sriariyametta, an
accountant at S.G.V. stated in K.R. Precision's financial
statement submitted to the SET last week.

The auditor's comments came as K.R. Precision posted a 43%
decline in sales last year because of falling prices and
unit shipments resulting from a slowdown in the personal
computer market worldwide.

Seagate Technology Inc of the United States is the
company's biggest customer, accounting for nearly 95% of
total sales of K.R. Precision last year.

K.R. Precision has been negotiating with creditors to
restructure its $32-million debt, and wants to consolidate
various loans into a single long-term loan.

The company proposes a five-year facility with equal
quarterly repayments of principal, starting at the end of
an 18-month grace period. The proposed interest rate is
around the Singapore Interbank Offered Rate plus between
2.5 and three percentage points.

But a foreign analyst said the proposal had been shot down
by the creditors and something new needed to be worked out.

KRP is also looking for a strategic partner, but this
search may be put on hold as the main criteria for the
potential suitor was to see a successful debt-restructuring
scheme in place.

K.R. Precision was the fourth-worst performing stock in
Thailand last year, tumbled in price by 88% after a loan
payment default in March. (Bangkok Post 11-Mar-1999)


QUALITY HOUSES: QH fails to win nod for debt revamp
---------------------------------------------------
Quality Houses Plc (QH) could not win approval from its
creditors for its proposed debt restructuring plan which
includes capital reduction and debt maturity extension,
according to a source close to the deal.

The source noted that Securities One Plc, which is the
financial adviser to QH, proposed in the rejected plan,
which was discussed by creditors who convened at the Feb 24
meeting, that the debt-ridden property company would re-
adjust its capital and asset structures.

"The plan proposed that QH would adopt a 20 per cent
reduction on the value of properties under construction to
keep the prices close to the market level," he said.

The negotiation between the debtor and creditors has been
going on since June last year.

Regarding the capital structure, QH proposed it would issue
275 million new shares for sale to the existing
shareholders at Bt0.10 each. This would have reduced
capital by 75 per cent to clear accumulated debts and pave
the way for faster dividend payment.

"Under the plan, creditors were asked to convert some parts
of debts into equity. The maturity of the remaining debts
would then be extended and creditors would receive in
return convertible preferred shares. That's the reason why
the plan was turned down," the source said. (The Nation
11-Mar-1999)


RANGSIT PLAZA: Rangsit Plaza set for debt revamp
------------------------------------------------
Rangsit Plaza Co, the operator of Future Park, the largest
shopping complex in the Rangsit area, plans to complete its
Bt2.6-billion debt restructuring through both debt to
equity conversion and loan roll-over programmes.

Suwannee Chinchiewchan, Rangsit Plaza Co's managing
director, said the company is now negotiating with four
financial institutions, including Thai Bank, Nakornthon
Bank (NTB), Bank of Ayudhya (BAY), and the Financial
sector Restructuring Authority (FRA). The Bank of Thailand
(BOT) wants to complete the debt restructuring programme
this April. The company's largest creditor is NTB, which
shoulders more than 50 per cent of the company's debt.

For the roll-over programme, debt repayment is expected to
be extended for another 5-10 years. However, no conclusion
for the conversion of debt to equity was reached.
NTB is also a major shareholder of Rangsit Plaza Co, with
the other major owner being the Wanglee family.
(The Nation 11-Mar-1999)


SIAM CITY CEMENT: SCCC takeover by Holderbank looms
---------------------------------------------------
Swiss cement maker Holderbank is apparently a step closer
to concluding its takeover of Siam City Cement Plc as
Thailand's second largest cement company announced it would
double its registered capital to Bt3 billion.

Holderbank Financiere Glaris Ltd, which last August
acquired 24.99 per cent of SCCC from the Ratanarak family,
is expected to further increase its holding in the firm to
at least 35 per cent as the family and other shareholders
are not expected to fully subscribe to shares from the
capital increase.

The move also marks SCCC's return to profitability as the
firm would have Bt10 billion in fresh capital which could
dramatically decrease its debts from the current Bt27
billion. The company would get Bt6 billion from the
upcoming 100 million shares of the capital increase plus
another Bt4 billion from the August acquisition of the
firm.

"Siam City Cement will return to profitable operations from
the year 2000 or this year,'' predicted Marc Sebastien
Lavoie, senior analyst at Asset Plus Securities Co.

After some postponements, the capital increase announcement
also suggested that SCCC is very close to finalising its
debt restructuring programme with creditor banks.

According to its filing with the Stock Exchange of
Thailand, SCCC plans to raise its registered capital by
Bt1.5 billion to Bt3 billion through the issue of 150
million new shares at par value of Bt10.

The company said it urgently needed fresh funds to repay
US$160 million to creditors, a prerequisite for debt
restructuring with its lenders.

With assets of Bt36 billion, SCCC had an operating loss of
about Bt2.3 billion last year though a Bt6.6 billion
accounting gain from foreign exchange made it to book a net
profit of Bt4.23 billion. The company has stopped principal
payments on its loans since February last year. (The Nation
13-Mar-1999)


SRITHAI SUPERWARE: To sign debt deal by end of month
----------------------------------------------------
Creditors of Srithai Superware Plc have concluded a US$146-
million debt restructuring agreement and expect to sign the
deal in the next two weeks, Kittipong Urapeepatanapong, a
partner at Baker & Mackenzie law firm, who represent the
creditors, says.

Kittipong said that under the agreement reached on
Wednesday, creditors will convert part of the debt into
equity. Earlier, Sanan Angubolkul, president and major
shareholder of Srithai, said about 50 per cent of total
debt would be converted into equity.

Foreign creditors will as a result have a majority stake of
more than 50 per cent ownership of Srithai, a major
producer of melamine and related products, according to
Sanan.

The creditors are now preparing the documents for the debt
restructuring agreement, under which the payback of the
amount owed to bondholders will be postponed by 5 years.
These bonds reached maturity late last year but Srithai was
unable to redeem them.

The debt restructuring agreement is understood not to
contain a "haircut" or any sharing of losses on outstanding
loans among creditors.

The creditors that will become major shareholders in
Srithai plan to appoint two or three directors.
(The Nation 13-Mar-1999)


THAI OIL: Thai Oil debts for conversion
---------------------------------------
Creditors of Thai Oil Co (Thaioil) will be asked to convert
their debts into equity and take a 49 per cent stake in the
oil refining company, says Pichai Chunhavajira, deputy
governor of the Petroleum Authority of Thailand (PTT) which
has a 49 per cent stake in the firm.

Thaioil, which stopped repaying its US$1.9 billion debts in
November, will need to increase its registered capital from
the current low level of Bt20 million, but its major
shareholder -- the Chow Chowkwanyun group -- has blocked
the change as the capital increase will dramatically dilute
its holding in the refinery.

Pichai said only two options exist for Thaioil: one is for
the firm to seek a new strategic partner to help it
increase its paid-up capital; another is for creditors to
convert their debts so as to increase the capital base of
the company. However, he said the first option was not now
feasible as any new partner would like to see Thaioil
restructure its debts first.

Earlier, US firm Coastal Corp was reported to be interested
in acquiring a stake in Thaioil.

PTT is preparing a debt restructuring proposal for
Thaioil's 124 creditors, saying the way to revitalise the
firm is to inject new capital and cut its debts to not more
than US$1.2 billion. The creditors, which include domestic
and foreign financial institutions and trade creditors such
as crude oil suppliers, will also be asked to take a 15-20
per cent "hair-cut" out of the total debt amounts.

If the capital increase plan proceeds, Thaioil will be 49
per cent owned by PTT, another 49 per cent by creditors or
new strategic partners, and 2 per cent by the Crown
Property Bureau. Shell and Caltex are not expected to
participate in the capital increase, and will see their
stakes diminish to almost nothing, from the present 15.05
per cent and 4.75 per cent respectively. Unlike the Chow
group, Shell and Caltex have no legal protection right to
veto a capital increase.

PTT will have to spend US$200-300 million to retain its 49
per cent holding in Thaioil.

The majority of Thaioil's creditors are Japanese banks,
including the Bank of Tokyo-Mitsubishi and Sanwa Bank.
(The Nation 11-Mar-1999)


THAI TELEPHONE: Magazine should apologise
-----------------------------------------
Thai Telephone & Telecommunication yesterday demanded a
correction and apology from a London-based trade magazine
for publishing what it called "false report" on the
company's financial position.

TT&T also said an earlier offer by Asia-Pacific Telecoms
Analyst to publish a clarification in its next edition was
totally inadequate, adding that it would reserve the right
to take legal action against the publisher.

The magazine ran an article on February 15 saying that TT&T
was in financial difficulties and its revenue per line has
fallen to between 400 and 500 baht. It also said the
company had suspended interest payments to its creditors.

Executive vice-president Witit Sujjapong said a simple
"clarification" in a small box in a future edition would
not be noticed by readers, and would come too long after
the damage caused by the original article.
(Bangkok Post 12-Mar-1999)


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