---

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, April 22, 1999, Vol. 2, No. 77

                    Headlines


* C H I N A   &   H O N G   K O N G *

AHMMCOM LIMITED: Winding-up petition
CHESTER ASSOCIATION LIMITED: Winding-up petition
CHINA CONSTRUCTION BANK: China firm to clean up bad loans
GITIC SHENZHEN: Report explores broke China Trust
GUANGNAN HOLDINGS: Deloitte Touche Tohmatsu quits as auditor
SING TAO: Sequoia finds Aw offer unfair


* I N D O N E S I A *

ASTRA INTERNATIONAL: Meets bankers to restructure debt
BAKRIE & BROTHERS: Meets bankers to restructure debt
PT PERSERO DANAREKSA: Creditors lose half in restructuring


* J A P A N *

SANYO ELECTRIC: Sanyo to cut 6,000 jobs
TAKASHIMAYA: To cut staff by 8% as profit falls


* K O R E A *

DAEWOO GROUP: Daewoo blazes trail but rocky road ahead
HYUNDAI GROUP: Under pressure from gov't to restructure


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

C&P HOMES: Nears deal to swap debt for equity
MONDRAGON: Wants SC's help to reopen casino
NEW RIVIERA: Hotel asks SC to mediate in debt settlement case
PHILIPPINE AIRLINES: Australian loan offered for PAL


* T H A I L A N D *

BANGKOK METROPOLITAN: Results announcement
DBS THAI DANU BANK: Results announcement
MEEBARAMEE: To sell 40% stake to pay debts
NAKORNTHON BANK: Expects to name strategic partner by next week
RAJDAMRI HOTEL: Small shareholders expect higher tender price
TPI POLENE: To offer better terms on debt restructuring


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

AHMMCOM LIMITED: Winding-up petition
------------------------------------
A petition for the winding up of Ahmmcom Limited was presented
to the High Court on Mar 31 by Cheung Chi Lap of Room G, 8th
Floor, Block 1, Tsui Lai Garden, Sheung Shui, New Territories,
and the said petition is directed to be heard before the court at  
11:00 am on May 19, 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.


CHESTER ASSOCIATION LIMITED: Winding-up petition
------------------------------------------------
A petition for the winding up of Chester Association Limited was
presented to the High Court on April 8 by Lo Woon Ho of Flat/Rm
C2110, King Wah House, Shau King Estate, Tuen Mun, New
Territories, and the said petition is directed to be heard before
the court at 9:30 am on May 26, 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.


CHINA CONSTRUCTION BANK: China firm to clean up bad loans
                               
---------------------------------------------------------
China took its first serious step toward cleaning up its ailing
state-run banks Tuesday by opening a special company to help one
of those banks write off bad loans. The Xinda Asset Management
Co. will buy $36 billion in defaulted or problem loans from the
China Construction Bank, or about a quarter of the bank's entire  
loan portfolio, banking officials said. Modeled on the U.S.
Resolution Trust Corp., which rescued bankrupt savings and loans
associations in the early 1990s, Xinda will try to recover as
much of those loans as possible by such measures as selling off
borrowers' assets.

If Xinda is successful, China's three other state-run banks   
Bank of China, the Industrial and Commercial Bank of China and
the Agricultural Bank of China are all expected to follow suit by
opening similar asset management companies, bankers said. All
four state-run banks racked up enormous losses on lending to
state enterprises and real estate.

Xinda will be started with $1.2 billion in seed money from the
Ministry of Finance. It will also be able to raise funds by
selling bonds guaranteed by the government. Its president and
vice president will be appointed directly by the State Council,
China's Cabinet.

International concern over China's banking industry has
intensified since the bankruptcy in January of Guangdong
International Trust and Investment Corp., the investment arm of
one of China's wealthiest provinces. China's central bank has
tried to reassure investors by saying bad loans total less than
10 percent of all bank loans. But analysts put that figure  
closer to 25 percent. (AP Online 20-Apr-1999)


GITIC SHENZHEN: Report explores broke China Trust
                      
-------------------------------------------------
Creditors of a bankrupt mainland Chinese investment trust's  
subsidiary could be repaid just 13 cents on the dollar amid new
problems that indicate an even gloomier outlook for lenders
seeking repayments, media reported today. Liquidators of the
Shenzhen subsidiary of the Guangdong International Trust and
Investment Corp., known as Gitic, have uncovered charges and
debts, previously unreported, that run into the millions, the
South China Morning Post reported.

That's bad news for Gitic Shenzhen's 150 creditors, mostly
mainland financial institutions, who are claiming debts of $535
million and can expect only a tiny fraction of that to be repaid,
the Post said. A preliminary investigation has found that Gitic
Shenzhen has just $72 million in assets that can be used to repay
the creditors.

Gitic Shenzhen's liquidators released their findings to creditors
Monday in the Shenzhen Intermediate People's Court, just across
the border from Hong Kong. The problems in Gitic Shenzhen could
also force Gitic itself to revise its bankruptcy figures. Gitic
went broke in January, listing liabilities of $4.3 billion and
assets of just $2.6 billion.

The Chinese government allowed Gitic, the main investment arm of
China's wealthiest province Guangdong, to go bankrupt in a move
that rattled the financial community and forced several banks in
Hong Kong to write off loans. Meanwhile, creditors of a smaller,
leasing subsidiary found out Wednesday they may only get 10 cents
on the dollar, government-run Radio Hong Kong reported.

The leasing arm of Gitic was reported to have debts of $266
million against just $28 million in assets that can be used to
repay creditors. Creditors of other subsidiaries are scheduled to
meet this week as part of the liquidation of Gitic. China's
central bank has reported that bad loans comprise less than 10  
percent of all bank loans, but analysts put the figure at closer
to 25 percent. (AP Online 21-Apr-1999)


GUANGNAN HOLDINGS: Deloitte Touche Tohmatsu quits as auditor
------------------------------------------------------------
Deloitte Touche Tohmatsu has bowed to pressure to resign as the
statutory auditor of insolvent red chip Guangnan (Holdings).
Deloitte had previously resisted calls to quit by Guangnan
officials after questions were raised over its work in a report
by fellow accounting firm KPMG. KPMG was brought in last year to
prepare a special audit after financial problems surfaced at
Guangnan and its parent, Guangdong Enterprises (Holdings).

KPMG said at least US$1.07 billion of exceptional losses brought
forward from 1997 should have been booked in the accounts for
1997 or previous years.

Guangnan company secretary Maria Li said Deloitte's resignation
was not related to its performance in past statutory audits.
Guangnan intends to appoint KPMG to replace Deloitte. (South
China Morning Post 21-Apr-1999)


SING TAO: Sequoia finds Aw offer unfair
---------------------------------------
A minority shareholder in Sing Tao Holdings has urged other
minority shareholders to reject a proposed takeover by Lazard
Asia at a meeting on April 29. Sequoia Trust, in an open letter,
said special arrangements offered to Sing Tao chairman Sally Aw
Sian were unfair to minority shareholders. Ms Aw was seeking to
sell her controlling interest to settle a personal debt which
"has nothing to do with Sing Tao, yet she will receive financial
benefits from Sing Tao and buyers of her shares".

It attacked Lazard's plans to pay Ms Aw a consultancy fee of $9
million a year for six years as too high, and also criticised
plans to offer her a loan of $58 million. Sequoia also said
Lazard's offer price was too low. (South China Morning Post
21-Apr-1999)


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

ASTRA INTERNATIONAL: Meets bankers to restructure debt
------------------------------------------------------
Bakrie & Brothers and Astra International, two of Indonesia's
largest diversified conglomerates, yesterday presented proposals
to their creditor banks to restructure their outstanding foreign
debt.

Bakrie met creditor banks to restructure about $1.15bn in debt
but a deal is unlikely before the end of June. Separately,
carmaker Astra International presented its proposal to a number
of Japanese banks in Tokyo to reschedule a portion of its $1bn
and Rp1,000bn ($116m) in debts, divided into three tranches with
maturities between three and seven-and-one-half years. The
company's creditor banks are expected to vote on the proposal on
April 28 and bond holders will vote on April 29.

The Indonesian government is also helping debt-strapped
corporations reschedule their borrowings under the Jakarta
Initiative but only 15 cases have been successfully concluded.
(Financial Times 21-Apr-1999)


BAKRIE & BROTHERS: Meets bankers to restructure debt
----------------------------------------------------
Bakrie & Brothers and Astra International, two of Indonesia's
largest diversified conglomerates, yesterday presented proposals
to their creditor banks to restructure their outstanding foreign
debt.

Bakrie met creditor banks to restructure about $1.15bn in debt
but a deal is unlikely before the end of June. Separately,
carmaker Astra International presented its proposal to a number
of Japanese banks in Tokyo to reschedule a portion of its $1bn
and Rp1,000bn ($116m) in debts, divided into three tranches with
maturities between three and seven-and-one-half years. The
company's creditor banks are expected to vote on the proposal on
April 28 and bond holders will vote on April 29.

The Indonesian government is also helping debt-strapped
corporations reschedule their borrowings under the Jakarta
Initiative but only 15 cases have been successfully concluded.
(Financial Times 21-Apr-1999)


PT PERSERO DANAREKSA: Creditors lose half in restructuring
----------------------------------------------------------
The Asian Wall Street Journal reported that PT Persero Danareksa,
a holding company for the state owned securities company
Danareksa Sekuritas, has restructured $438 million in debt
through a combination of buy backs and the issuance of new debt
instruments. However, this deal also involved 40 percent of
Danareksa's creditors losing half of their original investments.  
The report also stated that Danareska successfully extended
payments of 76 percent of the remaining obligations over for
periods as long as eight years.  

Over the past year, Danareksa has repurchased $136 million in
debt from creditors at an average price of 49.5 cents on the
dollar. Those creditors who did not sell back their debt agreed
to extend it into three- and eight-year tranches. The three-year
tranche of $47.5 million will be initially repaid at an interest
rate of 50 percent points (or one hundredths of a percentage
point) above the three-month London interbank offer rate (LIBOR).  
The rate will escalate to 100 basis points over LIBOR by the end
of the third year.  

The eight-year tranche of $148.5 million will be repaid at the
three-month LIBOR rate plus a varying margin, starting at 2
percent and ending at 6 percent for the final two years of the
loan maturity.   

The company's remaining 563 billion rupiah obligations to local
creditors and $45 million to another Indonesian company are
outside of this restructuring agreement, although this agreement
has provisions to ensure that these Indonesian creditors do not
get any preference in repayment.


=========
J A P A N  
=========

SANYO ELECTRIC: Sanyo to cut 6,000 jobs
---------------------------------------
Japanese electronics maker Sanyo Electric Co. will slash 6,000  
jobs nearly 11 percent of its work force over the next three
years in a  major restructuring drive. The cuts will reduce
Sanyo's work force to 49,000 from the current 55,000. Sanyo's
jobs cuts will be accomplished mainly by job freezes, early
retirement and transfers of employees to non-group affiliates, a  
spokesman said. Work force reductions have also been announced
recently by Hitachi Ltd., Mitsubishi Electric Corp., NEC Corp.
and Sony Corp., three of Japan's biggest electronics companies.
(AP Online 21-Apr-1999)


TAKASHIMAYA: To cut staff by 8% as profit falls
-----------------------------------------------
Takashimaya, Japan's largest department store by sales, said it
will cut its workforce by 8 per cent by February 2001 after a
slump in sales of clothing and furniture pushed down group profit
a higher-than-expected 43 per cent. Takashimaya's group current
earnings, or pre-tax profit from operations, fell to 9.6 billion
yen (S$138.2 million) in the year ended Feb 28, from 16.6 billion
yen the year before. That was 30 per cent below the company's
13.7 billion yen forecast. Sales fell to 1.19 trillion yen, down
4.3 per cent on the year.

Takashimaya is one of more than 50 Japanese companies that has
announced restructuring plans this year in a bid to cut costs and
reduce debt. Most plans involve reductions in the size of the
workforce through early retirement and the hiring of fewer new
employees. Analysts were not impressed by its plan to cut 850 of
its 10,731 parent workforce by not replacing people who retire or
leave.

Because of accounting changes Takashimaya said it will boost
current profit 30 per cent to 12.5 billion yen in the year to
next Feb 28, on sales of 1.16 trillion yen, down 2.1 per cent.
Without the accounting changes, current profit would fall 25 per
cent to 7.2 billion yen, it said. (Bloomberg and Singapore
Business Times 21-Apr-1999)


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

DAEWOO GROUP: Daewoo blazes trail but rocky road ahead
------------------------------------------------------
Daewoo Group's decision to whittle down its sprawling empire has
left many people contemplating the reason for this radical change
of direction. The immediate effect of Daewoo's announcement on
Monday is to put pressure on other conglomerates to speed up
their restructuring efforts.

"Daewoo's announcement seems like a genuine move toward reforms,"
KEB Salomon Smith Barney head of research Lee Keun-mo said.
"Hyundai will have to announce its own reform plan to match
Daewoo's."

Daewoo said it would sell off nine trillion won (about HK$57.39
billion) of additional assets, including its profitable shipyard,
under severe pressure from the government and creditor banks. The
group already announced late last year that it would raise 29
trillion won by selling assets and subsidiaries to bolster its
weak finances.

Despite government calls to slash corporate debts, Daewoo
increased its borrowings to fund the purchase of Ssangyong
Motors, and its 60 trillion won of debts are bound to rise
further as it prepares to take over debt-laden Samsung Motors.

Alarmed by Daewoo's debt-to-equity ratio of nearly 400 per cent
-- well above the government guideline of 200 per cent -- many
creditors recently called in loans to the group or demanded
higher interest rates reflecting its high risk premium, banking
sources said. Also, last week the government urged banks to take
punitive action against conglomerates slow to implement reforms.

The group is looking to sell its shipyard, the world's second
largest, to Mitsui Engineering & Shipbuilding or another Japanese
company for about five trillion won. Daewoo's commercial vehicle
business will also be put on sale for about 1.1 trillion won,
possibly to Scania of Sweden. When the restructuring is
completed, Daewoo will only have six subsidiaries from more than
40 now.

But some analysts question the feasibility of Daewoo's
restructuring plan, citing its bad track record of reforms,
particularly its failed attempts to sell shares in Daewoo Motors
to General Motors in spite of repeated promises of such sales.
(South China Morning Post 21-Apr-1999)


HYUNDAI GROUP: Under pressure from gov't to restructure
-------------------------------------------------------
South Korea's largest business conglomerate, the Hyundai Group,
came under pressure yesterday to follow the troubled Daewoo Group
and come forth with a radical corporate restructuring programme.
The pressure on Hyundai was ratcheted up after Daewoo announced
on Monday a massive overhaul under which it would sell off its
shipbuilding and other profitable core businesses to foreign
buyers to boost liquidity and survive its crisis.

Kang Bong-Kyun, top presidential secretary for economic affairs,
said Hyundai must also slim down its empire, which has been
growing larger with the acquisition of major units from other
groups, including Kia Motors Co.

The thinly-veiled warning from the government coincided with the
Hyundai Group's announcement that it planned to raise US$1.55bil
from abroad this year and a further 1.5 trillion won (US$1.2bil)
through rights issues. This money would be used to help finance
the acquisition of the LG Group's semiconductor unit, LG Semicon,
and improve the financial structure of Hyundai Electronics Co.

Hyundai has said it will sell 11 businesses, including three or
four units with more than one trillion won in assets each, by the
end of this year. Through these measures and other spin-offs,
liquidations and mergers, the group plans to shed 32.6% of its
assets by the end of the year. (Agence France-Presse and The Star
Online 21-Apr-1999)


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

C&P HOMES: Nears deal to swap debt for equity
---------------------------------------------
The Asian Wall Street Journal reported that C&P Homes is closing
a deal to swap debt for equity with some of its creditor banks.  
The report stated that the Philippine Commercial International
Bank and the United Coconut Planters Bank were among the major
creditors agreeing to exchange 2 billion pesos in short-term
loans for equity.  

Last year, C&P Homes also reportedly struck a similar deal with a
number of other banks exchanging assets for 6 billion pesos in
debt.  


MONDRAGON: Wants SC's help to reopen casino
-------------------------------------------
The Mondragon Leisure and Resorts Corp. (MLRC) yesterday asked
the Supreme Court to allow the reopening of its casino at the
Clark Special Economic Zone. MLRC counsel Ernesto Francisco, Jr.
said the Philippine Amusement and Gaming Corporation's (Pagcor)
unilateral closure of the Mimosa Regency Casino last year was
"illegal" as it violated their agreement to submit to arbitration
any dispute that may result in the revocation of its license to
operate the casino. In its comment, Mondragon begged the High
Tribunal to nullify Pagcor's rescission of the operation
agreement and junk the government's plea to permanently close the
world-class gambling center.

"Pagcor contends (the rescission of the agreement) was already
consummated. Petitioner cannot seek refuge in its claimed
revocation of (our) license considering it was done in complete
disregard of the dispute settlement provision of the agreement
and in utter violation of (our) right to due process," it said.

Pagcor is a government-owned and -controlled corporation under
the Office of the President. Created by virtue of Presidential
Decree 1869, its main function is to operate and regulate
gambling casinos.

MLRC denied all allegations Pagcor included in its original
Supreme Court petition, including its claim Mimosa "deliberately
enticed" Pagcor's regular customers to play in its casino and
changed casino procedures to reduce Pagcor's share from the
casino operations. MLRC said the Supreme Court must not allow its
PhP1-billion investment go to waste by preventing it from
continuing operations once it is allowed to resume management
over the resort.

Pagcor had ordered the casino's closure March last year, eight
months before the Mimosa resort was closed due to MLRC's failure
to pay Clark Development Corporation (CDC) PhP427 million in back
rentals.

Pagcor and MLRC entered into an agreement in July 1995 to
establish and operate a gambling casino in Clark. Over the years,
Pagcor several times accused the firm of violating the agreement,
including the MLRC's refusal to pay the PhP75-million "minimum
guaranteed consideration" due Pagcor for 1997. Before the parties
could patch up their differences, Pagcor revoked MLRC's license
to operate the casino. Government Corporate Counsel Jun Valerio
earlier defended Pagcor, saying it was only protecting its
interest when it closed the gambling complex.

Both the lower court and the Court of Appeals issued a
restraining order against the closure, prompting Pagcor to
elevate the case to the Supreme Court. (BusinessWorld
21-Apr-1999)


NEW RIVIERA: Hotel asks SC to mediate in debt settlement case
-------------------------------------------------------------
An international hotel management firm yesterday asked the
Supreme Court to compel the owners of a local hotel to
participate in an arbitration proceeding in Hong Kong for the
settlement of its debt of 9.2-million Philippine pesos (PhP).  
The local arm of United States-based Holiday Inns Corp. said
despite the termination of their management agreement five years
ago, New Riviera Hotel Development Corp. is still obligated to
pay $237,072 it still owes for the handling of its hotel
operation.

The Trader's Hotel in Roxas Blvd. used to be known as Holiday Inn
Manila before the management contract was terminated in 1994.  In
a petition, Howard Phil Kennedy, general manager of Holiday Inn
Manila and the American company's local representative, said
Riviera must honor its international management agreement even if
it has long ended.

The accord mandated both parties to resort to arbitration to
amicably resolve any dispute. "(We are) entitled to demand
arbitration pursuant to the agreement, even if it has expired,"
said Mr. Kennedy.

Holiday Inn cited US Supreme Court decisions in convincing the
local High Tribunal to rule in its favor. It said the lack of
local decisions on the issue of survival of the arbitration
clause led it to rely on foreign jurisprudence. The lower court
earlier junked this contention and, consequently, the suit.

The petitioner, however, told the Supreme Court since arbitration
is far more developed in the US and considering the dearth of
local jurisprudence on the issue, resorting to US decisions is
justified. Court records show the 1976 pact was governed by
international law rules and the International Chamber of
Commerce's (ICC) rules of arbitration.

Holiday Inn demanded the payment of fees due when the agreement
was terminated in 1994. Riviera refused payment, prompting the
bringing of the dispute to ICC. The group chose Hong Kong as the
venue for arbitration. Riviera also refused to resort to
arbitration, claiming the parties' duty to arbitrate was
terminated simultaneously with the expiration of the agreement.
It went to the lower court to stop Holiday Inn from pushing
through with the proceedings. The Manila Regional Trial Court
granted the petition. Holiday Inn insisted the trial court judge
misinterpreted the agreement in ruling in Riviera's favor.

"As per agreement, a party has the right to bring the matter
before an arbitrator. Once the party decides to do so, all he
needs to do is send a notice to the other party. After the
exercise of the option and upon receipt of such notice by the
other party, arbitration shall follow as a matter of course --
that is, it shall proceed regardless of whether the other party
consents," it said. (BusinessWorld 21-Apr-1999)


PHILIPPINE AIRLINES: Australian loan offered for PAL
----------------------------------------------------
Solomon Ventures International Pty. Ltd. of Australia has
expressed its interest to finance various projects in this
country -- particularly cash-strapped Philippines Airlines, Inc.
(PAL) -- through a $500 million loan. The foreign firm's offer
was made even before tycoon Lucio Tan has committed to inject an
additional $200 million into the flag carrier.

In a letter to President Joseph Estrada dated Jan. 29 this year,
Solomon said it was volunteering to become one of PAL's foreign
investors to aid in the airline's rehabilitation. The Australian
firm said it would cooperate with Michelin Trader, through its
top officer Peter Uy, which will act as intermediary for the
infusion of the said loan. Solomon said that the $500 million
loan is not only intended for PAL's rehabilitation but for other
Philippine projects as well. The firm, however, did not identify
other projects which could make use of the financing.

In response to Solomon's offer, the Board of Investments (BOI)
said it has already forwarded the loan offer to a number of
government agencies interested in the foreign funding.

Part of the $500-million loan offer, if approved, will add to the
$200 million that Mr. Tan has recently offered for the
rehabilitation of the beleaguered flag carrier. His infusion will
translate to the tycoon's 90% holding in PAL. (BusinessWorld
21-Apr-1999)


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

BANGKOK METROPOLITAN: Results announcement
------------------------------------------
Bangkok Metropolitan Bank reported yesterday that its 1999 first
quarter unaudited net loss amounted to Bt1.07 billion, compared
with a net loss of Bt4.03 billion in the same period a year
earlier. (The Nation 21-Apr-1999)


DBS THAI DANU BANK: Results announcement
----------------------------------------
DBS Thai Danu Bank reported substantially reduced losses over the
same period last year. Thai Danu swung to an unaudited net loss
of Bt103.2 million in the first three months of the year, its
president Pornsanong Tuchinda said in a statement. Despite the
bank still posting losses, it seems to be quite good news as it
showed much lower losses than those recorded in previous
quarters.

According to the DBS Thai Danu statement, the loss was attributed
to the economic slump and a 64 per cent decline in net interest
income and net dividend as well. Even though non-interest income
rose, and falling interest rates have helped reduce operation
costs substantially, the bank needed to write off losses of about
Bt160 million. Pornsanong said the bank has attempted to reduce
non-performing loans via debt restructuring while internal
engineering in areas of technology and systematic development is
now being undertaken in preparation for economic recovery.

The statement noted that the bank's capital adequacy ratio under
the Bank for International Settlements currently stands at 9.01
per cent of total risk-weighted assets, higher than the Bank of
Thailand's minimum requirement at 8.5 per cent. (The Nation
21-Apr-1999)


MEEBARAMEE: To sell 40% stake to pay debts
------------------------------------------
Meebaramee Entertainment, the operator of the country's largest
entertainment complex "Studio Music Style", is likely to sell 40
percent of its stake to a Singaporean firm to repay its debts,
according to the company's President Sakesun Chaicharoen.

The Singapore entertainment company is conducting due diligence
prior to the signing of an agreement, and is expected to conclude
the deal in a few months, Sakesun said.

"In fact, they want to take over our company or buy over 50
percent stake; however, we don't want to lose control in the
company so we are negotiating with them to sell only 40 percent
stake," Sakesun said, adding sales of company's stake will add
around 200 million baht of fresh fund to the company. The company
currently owes 200 million baht to Bangkok Bank (BBL) and Krung
Thai Bank (KTB). It has to pay monthly interest amounting of 5
million baht.

Meebaramee set up a studio music style early last year with
investment value of 600 million baht. The entertainment complex
comprises a dance arena, pub, karaoke, bakery, and three
restaurants. Sakesun said the economic slowdown has vastly
affected the entertainment sector in terms of reduced customers.
Daily average customers fell from 500 in 1998 to 300. (Business
Day [Thailand] 21-Apr-1999)


NAKORNTHON BANK: Expects to name strategic partner by next week
---------------------------------------------------------------
Nakornthon Bank's recapitalisation and share sale should be
finalised within a week, according to president Voravee Wanglee.
       
Standard Chartered Bank and United Overseas Bank have been
negotiating for a stake in Nakornthon, one of Thailand's smallest
commercial banks, for months. Nakornthon will select its foreign
partner and then request capital assistance under the
government's financial restructuring programme.

Executives of Nakornthon, United Overseas Bank and Standard
Chartered met yesterday with central bankers as well as members
of the Financial Restructuring Advisory Committee, which screens
recapitalisation applications. Panas Simasatien, the committee
chairman, confirmed that both Standard Chartered and United
Overseas Bank presented their plans.

Both bidders had to adjust certain terms to meet criteria under
the state recapitalisation programme, but Mr Panas said he
expected "no difficulties" in Nakornthon's application.

Prasarn Trairatvorakul, another committee member, said the
government would favour the plan offering the maximum benefit for
the state and the overall financial system.

Central bankers said Standard Chartered had offered a relatively
more attractive deal to shareholders, and had the inside track on
the deal.

Mr Voravee said both plans would be reviewed by Nakornthon's
executive board and presented to shareholders. Analysts expect
shareholdings to be diluted by as much as 90% with the entry of a
new partner. The recapitalisation plan will involve new shares
issued to either Standard Chartered or United Overseas Bank and
the government. Existing shareholders could be allowed to
purchase preferred shares held by the central bank, similar to a
deal made for Siam Commercial Bank.

Insiders say United Overseas had offered to retain current
management, but would give a lower price for shares.

Nakornthon was founded in 1933 by the Wanglee family and is the
country's second-oldest commercial bank. (Bangkok Post
21-Apr-1999)


RAJDAMRI HOTEL: Small shareholders expect higher tender price
-------------------------------------------------------------
Small shareholders of Rajdamri Hotel (RHC) are hesitant to sell
their shares to either Royal Garden Resort (RGR) or a consortium
led by Goldman Sachs (Asia) on the first day of a tender offer as
they anticipate further increase in tender offer price. According
to the Securities and Exchange Commission's (SEC) tender offer
regulation, tender offerers could change the conditions anytime
before the last 15 days of the closing date. Tender offer period
on both contending parties have been scheduled in the same
period, starting from yesterday to May 26.

A source at Jardine Fleming Thanakom, which advises RGR on the
deal, said some shareholders have already expressed an intention
to sell their shares to RGR, which now offers a higher price.
However, the sale volume in the first day is still much smaller
than expected because small shareholders expect price could
further rise.

The takeover war between RGR and Goldman Sachs (Asia) over RHC
intensified following RGR's decision to raise a tender offer
price previously proposed at 27 baht per share to 42 baht in a
countermove to Goldman Sachs' acquisition of 32.3 percent stake
in RHC from Runsway and Rantack of Japan at 38 baht per share.  
RHC share price in the Stock Exchange of Thailand (SET) yesterday
remained unchanged at 37.75 baht.

"A large number of RHC's shareholders called us, but most of them
just asked for more information rather than to sell," said the
source. (Business Day [Thailand] 21-Apr-1999)


TPI POLENE: To offer better terms on debt restructuring
-------------------------------------------------------
TPI Polene (TPIPL), a cement unit of Thai Petrochemical Industry
(TPI), will propose a major revision to debt restructuring plan
to be considered by creditors, possibly offering higher interest
payment, according to TPIPL Chief Financial Officer Pishnu
Suntharanund. The plan revision was raised as an issue after
creditors commented during the debt restructuring negotiations
that they thought TPIPL's proposed interest rate was too low and
would cause them to incur unacceptable losses. The voting for
TPIPL's debt restructuring plan has been delayed from January 31,
the first date set for creditors to decide on the plan.

Pishnu said the company is working out with creditors committee
on details of the revised plan. The creditors committee includes
representatives from Germany-based Kreditanstalt fur Wiederaufbau
(KFW), Bank of America, Krung Thai Bank, Phatra Thanakit,
Industrial Bank of Japan (IBJ), Development Bank of Singapore
(DBS), and Clifford Chance of the UK.

TPIPL's new financial advisor Blanckaert, Missorten, Spaenhoven &
Co, assisted the company in negotiating with creditors. The new
advisor replaced JP Morgan Securities Asia, which withdrew from
its advisory role in September, 1998.

However, Pishnu declined to elaborate on details of the revised
plan, which is claimed to be the major adjustment since its
drafting.

TPIPL stopped servicing its $1.3 billion debt since August 1997.
Its annual interest payment only amounted to as much as 6 billion
baht.

Apart from the issue of interest rate, creditors also questioned
the reliability of TPIPL's projected revenue. Pishnu said under
the worst case scenario, TPIPL is expected to generate sales
revenue of $1.2 billion on a yearly basis, excluding
extraordinary gains from possible sales of equity. The former
debt restructuring plan incorporated the company's request for
principal repayment extension by additional 10 years, starting
2000. The creditors will be given rights to swap unpaid interest
for a 20 percent equity in TPIPL.

TPIPL, the country's third largest cement producer, also operates
a linear density polyethylene (LDPE) plastic pallet plant,
located in TPI integrated petrochemical complex, Rayong.
(Business Day [Thailand] 21-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

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ USA, and Beard Group, Inc., Washington,
DC USA.  Debra Brennan and Lexy Mueller, Editors.

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

This material is copyrighted and any commercial use,
resale or publication in any form (including e-mail
forwarding, electronic re-mailing and photocopying) is
strictly prohibited without prior written permission of
the publishers.  Information contained herein is obtained
from sources believed to be reliable, but is not
guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are $25 each. For subscription information,
contact Christopher Beard at 301/951-6400.

            * * * End of Transmission * * *