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             A S I A   P A C I F I C      

      Thursday, April 8, 1999, Vol. 2, No. 68

                    Headlines


* C H I N A   &   H O N G   K O N G *

ALBATRONICS: Albatronics, creditors forge debt deal
BURLINGAME INTERNATIONAL: Responds to winding-up petition
FOUR SEAS TOURS: Four Seas Tours sails again
GITIC ENTERPRISES: Bidding for Gitic unit heats up
LIANHUA SUPERMARKET: Mainland stores in bankruptcy danger

SHANGRI-LA ASIA: Net profit lower by 46%


* J A P A N *

NICHIBOSHIN LTD: Lenders to forgive loans
NISSAN MOTOR: Reports pension shortfall
SEIKO: Results announcement


* K O R E A *

KOREAN HEAVY: Int'l bidding for HANJUNG slated for August
SAMSUNG CHEMICAL: To sell off non-core business
SHINDONGBANG: Creditors okay Shindongbang for workout


* M A L A Y S I A *

EKPRESSWAY LINGKARAN: RAM downgrades debt securities
PENGKALEN CAPITAL: Scheme to help out PCB brokerage subsidiaries
PROMET BHD: Restructuring plan includes takeover by Safuan Group
SUPERIOR METAL PRINTING: RAM downgrades Superior Metal


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

PHILIPPINE AIRLINES: Estrada hints at lifeline for PAL
PHILIPPINE AIRLINES: Marubeni approves plan
PHILIPPINE AIRLINES: PAL deadline may be extended


* T H A I L A N D *

BANGKOK STEEL: Three firms say they're ready to restructure
CHAO PHAYA FINANCE: Formal charges lodged
KRISDA MAHANAKORN: Three firms say they're ready to restructure
KR PRECISION: KRP's new CEO sees bumpy road ahead
NTS STEEL: Three firms say they're ready to restructure

SIAM COMMERCIAL BANK: To dispose of unprofitable subsidiaries
SUPALAI PLC: Starts debt negotiations
THAI MODERN: Creditors consider court action to recover B2.2bn


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

ALBATRONICS: Albatronics, creditors forge debt deal
---------------------------------------------------
Albatronics (Far East) has signed a non-binding letter of intent
with a majority of its bankers and major creditors to restructure
about HK$600 million in unsecured bank and trade debt, according
to its major shareholder --- Nasdaq-listed Nam Tai Electronics.

Implementation of the letter's terms is subject to a number of
conditions by May 31. The South China Morning Post says these
include regulatory approval, approval by Albatronics' independent
shareholders, acceptance of the terms by all Albatronics'
affected bankers and the signing of definitive agreements.

Under the proposed agreement, part of Albatronics' unsecured bank
debts of about US$42.58 million will be transferred into equity
in the company. The company will also transfer a portion of its
interest in its Shanghai-listed affiliate Shanghai Albatronics,
issue interest-free convertible debt repayable from a portion of
net profits, and make a relatively small cash payment.

The company's major trade creditor has agreed to convert
unsecured trade debts of US$34.19 million into interest-free
debts to be repaid out of 30 per cent of net profits. The unnamed
trade creditor will agree to extend two distributorship
agreements and a sales representative agreement with Albatronics
for five years. The amount to be restructured is part of
unaudited outstanding debts of HK$825 million as of
February 28.

Under the agreement, Nam Tai plans to pump US$9.68 million in
cash into Albatronics by subscribing to 750 million common shares
at 10 HK cents a share. It also intends to lend the company
US$3.87 million in the form of new interest-free and convertible
debt carrying an exercise price of 10 HK cents a share. The stock
closed on April 1 unchanged at six HK cents. Despite the equity
arrangment, Nam Tai will maintain control of Albatronics. It will
hold 60.9 per cent of the company, bankers 29.4 per cent and
Albatronics' existing management and the public 9.7 per cent if
all of the convertible debts are exercised.

The agreement marked a turnaround by Nam Tai which promised not
to take further legal action against the company pending a
definitive agreement. Nam Tai, which bought more than 50 per cent
of Albatronics in September, only five months before its debt
problems emerged, sued Albatronics and two directors on March 29
for alleged breach of contract, claiming damages.

According to the Hong Kong Standard of April 3, the terms of the
agreement include the exchange of about US$20 million of the
company's unsecured debt for 442.86 million new shares, issued to
the banks at a price of 4.5 US cents per share. About US$9.68
million of unsecured debt would be satisfied through the transfer
to the banks of one-half of Albatronics' 21.47 per cent equity
interest in its affiliate Shanghai Albatronics. Unsecured debts
of about US$10.32 million would be satisfied through the issue of
interest-free convertible debt to the banks, which would be
repayable out of 30 percent of Albatronics' net profits and
would, at the request of the banks, be convertible into common
Albatronics shares at a price of 6.5 US cents per share. About
US$2.58 million of Albatronics' debt would be repaid to the banks
in cash.


BURLINGAME INTERNATIONAL: Responds to winding-up petition
---------------------------------------------------------
On 19th March, 1999, a winding up petition of Burlingame
International Company Limited (received by the Company on 20th
March, 1999) was filed in the High Court of The Hong Kong Special
Administrative Region by The Hongkong and Shanghai Banking
Corporation Limited ("HK Bank") under the provisions of the
Companies Ordinance on the grounds that the Company is insolvent
and unable to pay its debts due to HK Bank for approximately
HK$390 million. Pursuant to the Listing Rules, the Company has
applied to the Stock Exchange for the suspension of dealings of
securities of the Company with effect from 22nd March, 1999 at
10:00 a.m.
     
The Company is experiencing a severe cash flow problem arising
from the reduction and the inability to renew matured borrowing
facilities from existing bankers, as a result of enormous falls
in the value of all of the Company's properties being pledged as
collateral. Further to the announcement made by the Company on
26th October, 1998, all of the Company's outstanding unaudited
consolidated indebtedness (including accrued interest) were due
for immediate settlement, totalling approximately HK$970 million
as at 28th February, 1999 (HK$894 million as at 26th October,
1998).
     
The Company has written on 29th March, 1999 to HK Bank requesting
them to withdraw their winding up petition on the grounds that
the Company is not insolvent. If HK Bank disagrees, the Company
would apply directly to the court to have the petition strike
off. Nevertheless, the Company is seeking to dispose of certain
properties (including pledged properties) in order to reach a
loan restructure compromise with all its existing banks.

Further to the announcement made by the Company dated 25th June,
1998 and its circular dated 15th July, 1998 in connection with a
discloseable transaction relating to the proposed acquisition by
the Company of the entire issued share capital of Go Gold Limited
from an independent third party at a consideration of HK$352.8
million, the Company announces that pursuant to the sale and
purchase agreement dated 24th June, 1998, the Company has on 30th
March, 1999 notified Wealth Land Development Corp. (the "Vendor")
the rescission of the said agreement due to the non-fulfilment by
the Vendor in its ability to deliver free from encumbrance to the
Company the transferrable title and vacant possession of  the
properties of Go Gold Limited. Pursuant to the said agreement,
the Company is now demanding the Vendor to return all sum of
money paid totalling approximately HK$90.6 million together with
interest.
     
Regarding the articles (appearing in various newspapers on 31st
March, 1999) in connection with a writ filed by Pacific Talent
against the Company in relation to the Company's proposed
disposal of 50% owned associate Shanghai Underground Centre Co.
Ltd., the Company wishes to clarify that it has not received any
writ and that the transaction with Pacific Talent has not yet
been completed as the entire sales proceeds have not been
received from Pacific Talent. The Company will investigate into
the matter and will take necessary legal actions if appropriate.
     
As at today, the Company is still in operation where its major
turnover is property rental. The Company will make further
announcement should there be any further development in the debt
restructuring compromise with the creditor banks, in the
rescission of the foregoing agreement as well as the matter
relating to the articles mentioned above.
     
The Company will apply to the Stock Exchange for the resumption
of trading in the securities of the Company on 7th April, 1999 at
10:00 a.m. Shareholders are reminded to exercise caution in
dealing the shares of the Company. Further to the interim results
announcement made by the Company dated 29th December, 1998, as at
today, the Company finds no further announcement that is required
pursuant to Practice Note 19. Furthermore, the Company announces
that Mr. Ting Leung Huel, Stephen resigned as an Independent Non-
Executive Director of the Company on 22nd March, 1999.
(Stock Exchange of Hong Kong 07-Apr-1999)


FOUR SEAS TOURS: Four Seas Tours sails again
--------------------------------------------
Four Seas Tours has resumed operating after its travel agents
succeeded in having their licences reinstated from March 31 and
the company retrieved its status as a member of the Travel
Industry Council of Hong Kong. The Hong Kong Standard reports the
company said it had agreed on the repayment schedule for amounts
outstanding under the Bank Settlement Plan with the International
Air Transport Association (Iata) and continues to be an
accredited agent of Iata. Previous demands over repayment of
loans are still under negotiation.


GITIC ENTERPRISES: Bidding for Gitic unit heats up
--------------------------------------------------
More than 10 local and foreign companies are actively pursuing to
buy Gitic Enterprises. The Hong Kong Standard reports a source
privy to the talks said the number will be whittled down to three
by the middle of the month, and each of them would be asked to
conduct due diligence on the assets and liabilities of Gitic
Enterprises. The source said the deal may be finalised by the
middle of this year, and the pricing, terms of agreement and
other issues will probably be sorted out by June. The source
declined to identify the interested buyers, but said most of
them are Hong Kong firms, several are listed but no major
developers are among them.

Gitic Enterprises' construction materials trading business,
property holdings in Hong Kong and China and its clean listing in
Hong Kong explain the keen interest in buying it.

The People's Daily newspaper reported yesterday that the
Guangdong Provincial Supreme People's Court had called a meeting
with Gitic creditors on April 22, the fourth since Gitic's
closure on October 7. The Guangdong City Intermediate People's
Court has said it would also hold a creditors meeting on April
21, while the Shenzhen City Intermediate People's Court would
hold one on April 20. The Guangzhou Intemediate People's Court
said it would hold a meeting of creditors of Guangxin Enterprise
on April 21.


LIANHUA SUPERMARKET: Mainland stores in bankruptcy danger
---------------------------------------------------------
Some of the mainland retail industry will go bankrupt without
adequate protection against foreign competition, which has sliced
profit margins to the bone, the deputy chief of the mainland's
biggest supermarket chains said. Liang Wei is vice-general
manager of Lianhua Supermarket, a Sino- foreign joint venture of
which Mitsubishi of Japan holds a 15 per cent stake and which
operates more than 400 supermarkets in Shanghai and the adjoining
provinces of Jiangsu, Anhui and Zhejiang. It had turnover of 4.2
billion yuan (about HK$3.9 billion) last year.

"Our main competitors are foreign firms like Carrefour of France,
Royal Ahold of the Netherlands and Metro of Germany, which have
decades of experience, deep pockets and global sourcing that
makes their goods cheap," he said. "Attracting foreign capital is
good to develop China's backward retail industry. But, even if we
enter the World Trade Organisation, we must open gradually. If it
is too rapid, that will be the end of the domestic industry. Look
at Taiwan and Japan, which have strictly controlled foreign entry
into their markets."

Last year, Lianhua posted pretax profit of 30 million yuan, up
from 28 million in 1997, with a profit margin of less than two
yuan on each 100 yuan of goods sold, Mr Liang said. Lianhua was
set up in 1991 and had only 41 outlets in 1995. It has expanded
rapidly since then, with the injection of new capital and
expertise from its partners in 1995.

Lianhua's biggest shareholder is Shanghai Industrial, which is
listed on the Hong Kong stock market. (South China Morning Post
07-Apr-1999)


SHANGRI-LA ASIA: Net profit lower by 46%
----------------------------------------
Hong Kong-listed hotel group Shangri-La Asia Ltd said its last
year's net profit slumped 45.98% from the previous year due to
falling values of hotel and investment properties. Profit dropped
to HK$401.43mil (US$51.86mil) in the year from HK$743.13mil in
1997. Sales last year reached HK$2.93bil, down 9.8% from
HK$3.25bil in the previous year.

Shangri-La Asia, the holding company of the Malaysia-based Kuok
family's hotel and property interests here, reported exceptional
losses as it unveiled the hefty drop in profit. It said it had
booked an exceptional loss of HK$126.96mil, compared with
HK$193.30mil a year ago. The company said in a statement to the
Stock Exchange of Hong Kong that the exceptional loss reflected a
deficit in the values of hotel and investment properties. The
board of directors recommended a final dividend of 7.0 cents
against the previous year's 15 cents. (Agence France-Presse and
The Star Online 06-Apr-1999)


=========
J A P A N  
=========

NICHIBOSHIN LTD: Lenders to forgive loans
-----------------------------------------
Shares of Nichiboshin Ltd. rose 2 yen, or 2.1 percent, to 97. The
consumer finance company said its lenders, which include Dai-Ichi
Kangyo Bank Ltd., will forgive 87.9 billion yen in loans. The
company will post that amount as a special profit for the year
ended March 31. With the announcement, the company revised its
parent net forecast for the same year to a loss of 100 billion
yen from the earlier break-even forecast. That's worse than Toyo
Keizai's estimate of a 20 billion yen loss. (Bloomberg
07-Apr-1999)


NISSAN MOTOR: Reports pension shortfall
---------------------------------------
Nissan Motor co. said it faces a pension shortfall of about 580
billion yen ($4.76 billion) on a consolidated basis, but added
that the amount would shrink if the government implements
measures to reduce such liabilities.

Politicians in the ruling Liberal Democratic Party are
considering allowing companies to put their equity holdings into
their pension funds, among other steps, to help ease corporate-
pension liabilities.

"We estimate the actual amount of Nissan's liabilities will be
less than 580 billion yen" when such measures are introduced
Ryuji Nakayama, a spokesman for the No. 2 Japanese auto maker,
said.

He said he couldn't comment on how much Nissan's pension
liabilities would shrink if such measures are implemented.

The auto maker will record its pension shortfall as a liability
next fiscal year, ending March 31, 2001, following the
introduction of new accounting methods.

The pension shortfall was disclosed by Louis Schweitzer, chairman
of Renault SA, at a recent analysts meeting in New York following
the French auto maker's agreement to acquire a 36.8% controlling
stake in the company, Mr Nakayama said. The figure was calculated
assuming an annual rate of return of 3.5%, he said. (Wall Street
Journal 07-Apr-1999)


SEIKO: Results announcement
---------------------------
Shares of Seiko Co. fell 29 yen, or 5.3 percent, to 512. One of
the world's largest wristwatch makers said it'll post a group net
loss of 17.5 billion yen for the year ended March 31 because of
weak sales at home and abroad and restructuring-related losses.
That's worse than its previous forecast of a 7 billion yen profit
and Toyo Keizai's estimate of a 2.5 billion yen profit.
(Bloomberg 07-Apr-1999)


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

KOREAN HEAVY: Int'l bidding for HANJUNG slated for August
---------------------------------------------------------
The government plans to hold an international bidding in August
to sell off its stake in Korean Heavy Industry and Construction
(HANJUNG), the Ministry of Commerce, Industry and Energy (MOCIE)
said yesterday. The ministry said an official announcement will
be issued in late May by Korea Development Bank (KDB) after
assessments on the heavy equipment manufacturer are completed by
evaluation agencies. The ministry said through the auction, the
government will sell 52,100,000 shares, at a face value of 10,000
won, now held by such state-run corporations as KDB, Korea
Electric Power Corporation and Korea Exchange Bank.

The bidding for HANJUNG is expected to be fierce as several
domestic chaebol have been watching it closely. Samsung Group has
already announced that it will participate in the auction, and
other conglomerates, including Hyundai, Daewoo and LG, are set to
jump in. Industry analysts say that these chaebol may seek to
form consortia with foreign partners to take over HANJUNG because
it will not be easy for them to raise sufficient funds alone.
They said a conservative estimate of the acquisition price tops
two trillion won. To secure control of the corporation, a bidder
needs to acquire more than 50 percent of the total shares.

Among the foreign companies interested in the bidding are General
Electric of the United States, Siemens of Germany, Alstom of
France, and multinational ABB. General Electric, in particular,
has unofficially expressed intentions to buy more than 20 percent
of HANJUNG. (Korea Herald 08-Apr-1999)


SAMSUNG CHEMICAL: To sell off non-core business
-----------------------------------------------
Samsung General Chemicals (SGC) announced Wednesday that it plans
to raise US$300-400 million in foreign funds through the sale of
non-core assets at its Sosan production plant by the end of the
year, with the aim of improving its financial standing. SGC said
that it recently signed an agreement for the US$35 million sale
of the plant's air separation units to BOC Gases Korea, the local
firm of England's BOC, with Samsung committing to continue
purchasing the oxygen and nitrogen produced by the equipment for
18 years. (Digital ChosunIlbo 07-Apr-1999)


SHINDONGBANG: Creditors okay Shindongbang for workout
-----------------------------------------------------
Financially-troubled Shindongbang and its three subsidiaries have
been approved for a workout by their creditors, possibly opening
the way for them to regain financial stability through the
deferment of their loans.

The creditors, led by Hanvit Bank, held a meeting Saturday to
decide Shindongbang's fate and concurred that Shindongbang and
its three affiliates have strong potential to make a comeback.
Accordingly, loans to the four companies, including cooking oil
maker Haepyo, will be deferred for three months until June 25,
during which time the creditors will reevaluate their assets. The
creditors also discussed the possibility of injecting fresh loans
but failed to reach a decision due to conflicting opinions. Under
normal  circumstances, new loans are part of a workout program.

While there were conflicting views on how the creditors should
rule on Shindongbang, the Haepyo brand's enduring popularity
among consumers after 33 years of specialization appears to
swayed the vote in its favor.

There had been concerns that Shindongbang's application would be
turned down after it became known that it had applied one day
after receiving 28.5 billion won for a new rights offering.

"Shindongbang's action made it appear as if it had tried to
deceive its  investors. It definitely looks as though
Shindongbang held back from applying for a workout until the
rights offering was completed," one analyst said. In fact,
Shindongbang was obligated to notify potential investors and the  
Financial Supervisory Commission of its plans to engage in the
new rights offering. The FSC is now investigating the case.

Shindongbang chairman Shin Myong-soo, who is an in-law of
disgraced former president Roh Tae-woo, said his company's
current predicament is the result of its creditors' refusal to
extend 35 billion won in new loans and that its chances of
regaining financial stability are very high. (Korea Times
04-Apr-1999)


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

EKPRESSWAY LINGKARAN: RAM downgrades debt securities
----------------------------------------------------
Rating Agency Malaysia (RAM) has changed the rating watch outlook
on debt securities issued by Ekpressway Lingkaran Tengah Sdn Bhd
(ELITE) from developing to negative. The debt securities issues
comprise of ELITE's RM440mil floating rate notes facility
(1995/2005) and RM400mil bonds (1995/2005), rated at A2/P2 and
A2, respectively. In a statement, RAM said the action was based
on its knowledge that ELITE had missed its interest payment
obligation due on March 31. RAM said it was currently seeking
clarification from both the company and the lead manager of
ELITE's private debt securities on the matter. (Bernama and The
Star Online 06-Apr-1999)


PENGKALEN CAPITAL: Scheme to help out PCB brokerage subsidiaries
----------------------------------------------------------------
Pengkalen Capital Bhd (PCB) has proposed a composite scheme of
arrangement between its two brokerage subsidiaries -- Pengkalen
Securities Sdn Bhd (PSSB) and Kimara Equities Sdn Bhd (KESB) --
and their creditors to help them out in settling amounts due to
their respective creditors. In a statement yesterday, PCB said it
put forward the proposal after obtaining a restraining order
against debt recalls and a credit freeze by creditors under
section 176 (10) of the Companies Act 1965.

However, PCB added, the creditors involved under the scheme only
included companies related to the group, owners of overpledged
shares and general creditors comprising financial institutions,
grantees of put option agreements and disputed claims. PCB said
liabilities owed by PSSB and KESB to general creditors would be
settled by the issuance of irredeemable cumulative preference
shares (ICPS) while amounts owed to related companies would be
converted to ICPS and redeemable exchangeable preference shares
(REPS).

Meanwhile, balances due to owners of overpledged shares would be
netted off with the owners' outstanding amount owed to both
brokerages and would be settled fully in cash out of the proceeds
from a capital injection by PCB. (Bernama and The Star Online
07-Apr-1999)


PROMET BHD: Restructuring plan includes takeover by Safuan Group
----------------------------------------------------------------
The Asian Wall Street Journal reported in a front page story that
Promet Bhd., a diversified marine engineering company, has
announced a restructuring plan that includes a 95 percent share
capital reduction and the take over by the Safuan Group, an
unlisted property firm. The write down of 587.2 million ringgit
in share capital will cover its cumulative losses of 557.8
ringgit. The plan also calls for Promet to transfer its listing
status on the Malaysian Stock exchange to a new entity that will
be formed after acquiring property assets from the Sufuan Group
for 292.3 million ringgit. This acquisition will be financed by
the issuance of new shares. Promet's subsidiaries dealing with
marine engineering will be sold off.  

The report further stated that Promet's bankers are likely to
only receive 30 to 40 sen on the ringgit out of this deal.

Promet Bhd. and three of its subsidiaries were granted a high
court restraining and stay order on July 27, 1998 to protect them
from creditors while they underwent this restructuring exercise.  


SUPERIOR METAL PRINTING: RAM downgrades Superior Metal
------------------------------------------------------
Rating Agency Malaysia Bhd (RAM) has downgraded Superior Metal
Printing (M) Sdn Bhd's RM25mil Gruf from P3 to NP. The rating
downgrade is premised on the likely lack of financial support
from its 30% shareholder, Superior Metal Printing Ltd
(Singapore), RAM said in a statement. Given the Superior Metal's
weak operational and financial profiles, support from Superior
Metal Printing Ltd is crucial for full repayment of debt issue,
said the rating agency. Superior Metal manufactures and sell
metal cans and pails and these cans and pails are mainly used in
domestic paint sector. The GRUF issue is unconditionally and
irrevocably guaranteed by a consortium of financial institutions.
However, the consortium of guarantors includes an institution
which has not been rated by RAM. Hence, RAM said, it was unable
to comment on the extent of credit enhancement to the debt issue.
(Bernama and The Star Online 06-Apr-1999)


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

PHILIPPINE AIRLINES: Estrada hints at lifeline for PAL
------------------------------------------------------
Philippine president Joseph Estrada said he did not think the
government would collect immediately the 236.9 million peso debt
to PAL. He said the Securities and Exchange Commission (SEC)
might consider extending the term of the loan, or find ways to
restructure it so that PAL could continue flying. The government
last week filed a claim against PAL to collect the unpaid amount,
extended earlier to the carrier under a short-term credit
facility.

Mr Estrada said Finance Secretary Edgardo Espiritu would meet the
SEC to discuss the government's claim, but he did not say when
the meeting would take place. The SEC warned last week it would
withhold approval of PAL's rehabilitation plan if the airline did
not disclose who would raise the new equity.


PHILIPPINE AIRLINES: Marubeni approves plan
-------------------------------------------
Marubeni Corp. of Japan, one of the secured creditors of debt-
ridden Philippine Airlines (PAL), has approved the carrier's
rehabilitation plan, it was disclosed Wednesday.

"Subject to conditions... the plan, as submitted to the
(Philippine Securities and Exchange Commission) is acceptable to
us," Marubeni said in a letter to the Securities and Exchange
Commission (SEC). Among the conditions are the infusion of 200
million dollars of new equity in the airline as specified in the
rehabilitation plan and government support to the national flag-
carrier such as settlement of charges owed to state agencies.
Marubeni warned that it will reject any amendment to the plan
which will adversely affect the airline's secured creditors.

The support of Marubeni, which was the security trustee for the
financing of two of PAL Airbus A320-200 aircraft, comes after
unsecured US creditor Chase Manhattan Bank turned down the plan.
(Agence France-Presse and RP Business News 07-Apr-1999)


PHILIPPINE AIRLINES: PAL deadline may be extended
-------------------------------------------------
According to the South China Morning Post, Philippine Securities
and Exchange Commission (SEC) said yesterday it is willing to
delay its decision on PAL's rehabilitation plan until April 30 to
give the ailing airline more time to name investors willing to
plough US$200 million into it. While PAL's management has set its
own June 4 deadline to find the funds, the SEC originally said it
must name the new investor group by April 15.

PAL presented a revised rehabilitation plan to the SEC last month
and this has been conditionally approved by key creditors.
However, the plan depends on the infusion of $200 million in
fresh equity, which would give the new investor group 90 per cent
ownership of the carrier. For the plan to be approved by the SEC,
PAL has to identify the new investors. The SEC chairman earlier
indicated that if majority shareholder Lucio Tan puts up the
money, the plan can be approved by April 15. His latest comments
suggest that PAL needs more time to secure an investor.

According to the Hong Kong Standard, the Philippine corporate
regulator set the deadline of April 15 for PAL to identify
investors willing to pump in US$200 million. The deadline is said
to coincide with a timetable set by the SEC to approve or reject
the rehabilitation plan proposed by PAL. Major creditors signed
on to PAL's proposed debt restructuring plan on condition PAL
gets by June 4 an equity infusion of US$200 million, the minimum
they consider necessary to make its operations viable. The
proposed rehabilitation plan would stretch out over 12 years the
payment for a portion of PAL's total debts.


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

BANGKOK STEEL: Three firms say they're ready to restructure
-----------------------------------------------------------
Three listed companies yesterday announced their intention to
begin restructuring plans to comply with regulations of the Stock
Exchange of Thailand.

Bangkok Steel Industry said the 50% decline in demand in the
construction and steel industry had sharply affected the company.
Restructuring negotiations were continuing with the company's 37
creditors, and a financial adviser was expected to be appointed
shortly. Trading in shares of the 15 companies will resume
tomorrow for one month, after which trading will be suspended
until rehabilitation plans are completed. (Bangkok Post 06-Apr-
1999)


CHAO PHAYA FINANCE: Formal charges lodged
-----------------------------------------
A defunct finance company, Chao Phaya Finance & Securities, has
been charged in a Bangkok court with allegedly extending improper
loans, becoming the first finance company to face such a test
case. Supol Yutitada, director-general, Department of Criminal
Litigation at the Office of the Attorney General, said that the
company was charged on March 30. Hearing will begin on May 26.
Five top executives of Chao Phaya are alleged to have wrongly
approved two loans worth 100 million baht and 160 million baht
respectively to two separate borrowers.

Analysts said the action against Chao Phaya, owned by the
Phatraprasit family and the Siam City Bank, was a test case for
future legal action against finance firms facing the biggest
financial clean-up in Thai history. The authorities are also
investigating several finance companies for alleged wrongdoing,
such as Finance One, General Finance, Dynamic Eastern Finance
Thailand, Thai Capital, CMIC Finance, Nithipat Capital, Mahatun
Finance, Thai Fuji Finance, and Thanapat Credit Foncier.
(Business Times and Business Day [Thailand] 07-Apr-1999)


KRISDA MAHANAKORN: Three firms say they're ready to restructure
---------------------------------------------------------------
Three listed companies yesterday announced their intention to
begin restructuring plans to comply with regulations of the Stock
Exchange of Thailand.

Krisda Mahanakorn Plc, a property developer, also announced plans
to implement a restructuring plan and appoint an adviser. Trading
in shares of the 15 companies will resume tomorrow for one month,
after which trading will be suspended until rehabilitation plans
are completed. (Bangkok Post 06-Apr-1999)


KR PRECISION: KRP's new CEO sees bumpy road ahead
-------------------------------------------------
A long bumpy road lies ahead of KR Precision (KRP) in its attempt
to restructure its debts and get back on track, said the
company's newly appointed Chief Executive Officer Martin E Horn.
Negotiations with its creditors to restructure the company's $32
million in debts has hit a snag and, so far, showed little sign
of any progress. Horn, in his first interview since taking the
job, said the road ahead would be very bumpy as there were lots
of issues waiting to be dealt with, starting with maintaining a
good relationship with their customers.

Horn said KRP has explained over the past few months to its
customers what changes the company needed to do. Its recent
consolidation of its operations has allowed the company to
successfully cut indirect overhead costs that resulted in a yield
improvement. Presently, the company has begun to receive positive
responses from its major customers, led by hard-disk drive
manufacturer Seagate Technology.

With over 30-years experience in the recording head business,
Horn hopes his close contacts with various other company's
management would help him explore new customer bases to help
ensure that KRP's recovery materializes. (Business Day [Thailand]
07-Apr-1999)


NTS STEEL: Three firms say they're ready to restructure
-------------------------------------------------------
Three listed companies yesterday announced their intention to
begin restructuring plans to comply with regulations of the Stock
Exchange of Thailand.

NTS Steel announced that it had appointed McDonald Company and
Securities as the company's financial adviser, and that
negotiations were underway with creditors. Trading in shares of
the 15 companies will resume tomorrow for one month, after which
trading will be suspended until rehabilitation plans are
completed. (Bangkok Post 06-Apr-1999)


SIAM COMMERCIAL BANK: To dispose of unprofitable subsidiaries
-------------------------------------------------------------
Siam Commercial Bank (SCB) plans to sell its non-profitable
businesses to cut losses and streamline its organization, the
bank's Chairman Chirayu Israngkul Na Ayuthaya said yesterday.
Chirayu, who is also the head of SCB's major shareholder -- the
Crown Property Bureau -- admitted the bank has to shoulder
massive losses incurred by from most of its 100 affiliated
companies. The business strategy was announced a day after the
resignation of SCB President Olarn Chaiprawat and the appointment
of Senior Executive Vice President Jada Wattanasiritham as the
new president.

The Crown Property Bureau, which is the bank's largest
shareholder with 25 percent, said it has already set aside 7.5
billion baht to buy SCB's new preferred shares, though its stake
would still be diluted to only 11 percent. The bank recently
issued 6.19 billion new shares, half of which will be sold to
existing and new shareholders, while the government will be
allowed to buy the rest at par of 10 baht. The share issue will
raise the bank's capital to about 12 times its present capital.

Last Friday, the Finance Ministry approved SCB's application for
government assistance on its first-tier capital. The ministry,
after the deal is completed, will be the largest shareholder with
at least 40 percent.

"I'm confident that we would be able to sell the entire preferred
shares issue. Our advisor Salomon Brothers already told us that
now is the right time to conduct a roadshow," said Chirayu.
(Business Day [Thailand] 07-Apr-1999)


SUPALAI PLC: Starts debt negotiations
-------------------------------------
Listed developer Supalai Plc has begun talks on restructuring
debts totalling several billion baht with Thai and foreign
creditors. The company owes three billion baht in local currency
loans and US$20 million borrowed from a foreign syndicate,
according to Atip Bijanonda, deputy managing director. The
biggest local creditor is Siam Commercial Bank. The foreign
lenders are First Pacific Capital Ltd, the Bank of Nova Scotia
Asia, the National Bank of Kuwait SAK's Singapore branch, the
International Bank of Singapore and the Tat Lee Bank.

Talks with each lender were proceeding at a different pace, Mr
Atip said. Those with BankThai were not making progress because
the bank was undergoing restructuring. Options in debt
restructuring included rollovers, lower interest rates, a grace
period on interest payment, using assets as payment, and
converting debt into shares in Supalai.

"There are no fixed principles on debt restructuring, as the
process depends on sources of debtor income, quality of
collateral, debt-servicing capacity and views of the creditors,"
Mr Atip said. Slowness in restructuring debt of private companies
was mainly due to a lack of incentives and penalties. If banks
could restructure debt owed by ventures deemed productive, they
should get an incentive to reduce their reserves against loan
losses, he said.

Apart from starting negotiations on loans, Supalai is also taking
with bondholders affected by its decision last year to default on
payments on debentures, with warrants, worth 380 million baht.
Most of the bondholders are Thai financial institutions.

Mr Atip said Supalai had borrowed from some of the finance
companies that were later closed down. The loans were auctioned
by the Financial Sector Restructuring Authority (FRA) last month
and are now held by National Finance & Securities (NFS) and the
Asset Management Corporation (AMC). (Bangkok Post 06-Apr-1999)


THAI MODERN: Creditors consider court action to recover B2.2bn
--------------------------------------------------------------
Creditors of Thai Modern Plastic Industry Plc are planning legal
action against the company's top executives, who are accused of
misappropriating 2.2 billion baht in company funds. A final
decision on whether to go to court will be made soon, according
to South Sathorn Planner Co, which was hired by the creditors to
draft a rehabilitation plan for TMP.

The Securities and Exchange Commission lodged two previous
actions against the executives, who are also TMP's major
shareholders. However, the police and the attorney-general's
office ruled that there was insufficient evidence.

Last June, the commission claimed that the management of TMP, led
by the Panyamanichote family, had not recorded loans properly.
The company had borrowed a total of 4.7 billion baht from 38
creditors, but only 2.5 billion baht was booked.

Suphol Yuthithada, a director-general at the attorney-general's
office, said investigations could be reopened only if there was
new evidence. Prasarn Triratvorakkul, the commission's deputy
secretary-general, declined to comment on the decisions by the
police and the attorney-general's office. The commission was
studying what to do next, he said.

A TMP source said the creditors had decided to take the matter
into their own hands as the rehabilitation plan would ensure that
the company, which was still profitable, would be back to normal
in five years.

Under the plan, the current executives and major shareholders
would be barred from any management role. Earnings would be put
aside to pay debt.

Creditors believed the only way they could recover the 2.2
billion baht from the executives was through going to court, the
source said, adding they had spent 5.25 million baht on hiring
South Sathorn Planner.

TMP's major shareholders are: Chitra Panyamanichote, Nomchitr
Panyamanichote, Chit-aram Panyamanichote, Panit Panyamanichote
and Aram Panyamanichote. They jointly hold about 60% shares of
the company. The major creditors include Bangkok Bank, ABM Amro
Bank, ING NV Bank and the Development Bank of Singapore. (Bangkok
Post 06-Apr-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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