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     T R O U B L E D   C O M P A N Y   R E P O R T E R     

                       E U R O P E

          Friday, June 9, 2000, Vol. 1, No. 24


                       Headlines

B E L G I U M

BLUEGATE: Software Company H1 Net Loss Widens


B U L G A R I A

BULBANK: Bulgaria Extends Sell-Off Talks
TSBANK: State to Acquire Assets of Bankrupt Bank


C Z E C H    R E P U B L I C

KRALOVOPOLSKA: 3 Member Creditor Com to Supervise Administration


G R E E C E

OLYMPIC AIRWAYS: Struggling Carrier Looking for Strategic Partner


P O L A N D

HUTA GLIWICE: Second Steel Mill to Close Down


R U S S I A

BRYANSK MACHINE-BUILDING: Russia To Sell Stake in Plant


U N I T E D   K I N G D O M

ALLIED DOMECQ: At Risk from Tax Rule
ALLIED POLYMER: Notice of Liquidation Proceedings
ANDREW RUBBER: Notice of Liquidation Proceedings
BROOK CROMPTON: Notice of Liquidation Proceedings
CAMPBELL CONCRETE: Notice of Liquidation Proceedings

CASCADE INSULATION: Notice of Liquidation Proceedings
CERAMIC MACHINE: Notice of Liquidation Proceedings
EGG INTERBANK: Scrambled Expected
FERNCRAFT COMPONENTS: Notice of Liquidation Proceedings
GLASS LIVING: Notice of Liquidation Proceedings

GLOBAL PUBLISHING: Notice of Liquidation Proceedings
LOGICA: Sees o1Billion Wiped Off Shares
MANAGED LEARNING: Notice of Liquidation Proceedings
MASON ELECTRICAL: Notice of Liquidation Proceedings
NET IMPERATIVE: Notice of Creditors' Meeting

ROYAL DOULTON: Troubled Manufacturer Sells Royal Crown Derby
TOURISME VERNEY: Notice of Liquidation Proceedings
WASHINGTON DESIGN: Notice of Liquidation Proceedings
WESTERMERE LTD.: Notice of Liquidation Proceedings
WINSTREAM LTD: Notice of Liquidation Proceedings
WHIZZKIDS COMPUTER: Notice of Creditors' Meeting
WOOD MARKETING: Notice of Creditors' Meeting
WORLD OF LEATHER: Notice of Creditors' Meeting


=============
B E L G I U M
=============

BLUEGATE: Software Company H1 Net Loss Widens
-------------------------------------------
BRUSSELS, June 7 (Reuters) - Six months to March 31 (in millions
of Belgian francs unless stated)

Group net profit (loss)  (52.1) vs (21.5)
Pre-tax profit (loss)   (52.7) vs (22.2)
Operating profit (loss)  (52.9) vs (22.2)
Exceptional gains (charges)  (0.201) vs 0.0
Turnover     100.7 vs 12.3
EBITDA (*)     21.5 vs 16.3
EBIT (!) (loss)    (37.9) vs (22.5)
NOTE - Bluegate is a Belgian software company focused on the oil,
gas and chemicals sector.
(*) earnings before interest charges, taxes, depreciation and
amortisation (!) earnings before interest charges and taxes.


===============
B U L G A R I A
===============

BULBANK: Bulgaria Extends Sell-Off Talks
-------------------------------------------
SOFIA, June 7 (Reuters)

Bulgaria said on Wednesday it had extended to end-June talks on
the sale of its biggest bank Bulbank to a consortium grouping
Italy's UniCredito and Germany's Allianz AG.

"The term of the talks is extended to the end of June," Deputy
Prime Minister Petar Zhotev told reporters.

"There are still several issues to clear and I hope to have a
contract by the end of this month," said Zhotev, who is also
executive director of the Bank Consolidation Company (BCC) which
is in charge of bank privatisations.

The BCC selected the consortium as top bidder for a majority
stake in Bulbank last month and was initially expected to reach a
draft contract by June 16.

Speaking after a meeting of the BCC, Zhotev said it also
postponed a ruling on the sale of another state bank, Biochim, to
the local Neftinvest Bank, pending more information about the
byuer's shareholders.

In April the BCC said it had chosen Neftinvest as exclusive buyer
of 67 percent in Biochim for $10 million.

Bulgaria pledged to sell all of its six state banks under an
agreement with the International Monetary Fund. Bulbank and
Biochim are the last two to be privatised.


TSBANK: State to Acquire Assets of Bankrupt Bank
------------------------------------------------
Bulgarian Nat'l. Financial  June 8, 2000

THE STATE in the person of the Agency for Government Claims
acquires the assets and property rights of TSBank, which was
declared bankrupt in 1997.


============================
C Z E C H    R E P U B L I C
============================

KRALOVOPOLSKA: 3 Member Creditor Com to Supervise Administration
-------------------------------------------
Czech AM    June 7, 2000

Creditors of engineering firm Kralovopolska, which was declared
bankrupt in February, established a three-member creditor
committee yesterday to supervise its administration. The
committee is represented by National Property Fund subsidiary
Kras, Konsolidacn­ Banka and a Brno Financial Office. The three
institutions are owed over Kc 3 bln. Another 359 creditors are
claiming some Kc 900 mln. While bankruptcy administrator Roman
Snyrch says the administrative value of Kralovopolska's
bankruptcy assets is Kc 2.9 bln, its market value stands at only
Kc 619 mln. Meanwhile, Snyrch added that negotiations regarding
the sale of its largest subsidiary, Kralovopolska Stroj­rna,
should be finished within three weeks. Kralovopolska posted a
preliminary 1999 gross profit Kc 269 mln on revenues of over Kc 2
bln.


===========
G R E E C E
===========

OLYMPIC AIRWAYS: Struggling Carrier Looking for Strategic Partner
-----------------------------------------------------------------
Financial Times   June 7, 2000

Yannos Papantoniou, economy minister, said that a minority stake
would be offered as a prelude to full privatisation. He said
Olympic was seeking a leading international carrier to be its
partner, although Greek investors would be welcome to participate
in its financial restructuring.

The transport ministry last week terminated Olympic's management
contract with Speedwing, British Airways' consultancy arm, after
BA turned down an option to buy 20 per cent of the Greek carrier.
Speedwing's departure comes at an awkward moment for Olympic. The
airline faces severe cash-flow problems after hiring temporary
staff to handle increased numbers of flights during the tourist
season. It has lost market share on domestic routes to private
Greek airlines, while Speedwing's policy of cutting fares to
boost passenger numbers has further reduced revenues.

Under EU rules, Olympic is no longer eligible for government
subsidies. But the government has asked the European Commission
for permission to transfer about $180m in state guarantees for
new aircraft purchases to cover emergency bank borrowings over
the summer months.


===========
P O L A N D
===========

HUTA GLIWICE: Second Steel Mill to Close Down
---------------------------------------------
BBC    June 08, 2000

The general meeting of shareholders at Huta Gliwice [Gliwice
Steelworks] on Saturday [3rd June] decided to close down the
steelworks. It will be the second shuttered steelmill in Silesia.  

The majority shareholder of the Gliwice mill Slawomir Janik
claims the works cannot be rescued. Solidarity trade union
members in the plant reject this opinion and have staged a sit-in
strike at the company's headquarters.

This is the first such protest in the Polish metallurgical
industry for a long time. The workers demand guarantees of
employment and a cushion package for those to be made redundant.
According to unionists, 300 workers in the steelmill got the sack
already; the rest arwis likely to join them next month. The chief
executive of the company counters that only 40 people lost their
jobs by now.

Huta Gliwice is a supplier of wheels and axles for rail cars. The
situation of the firm worsened after the recent collapse of
exports to the USA, Chief Eexecutive Joachim Gemza says.


===========
R U S S I A
===========

BRYANSK MACHINE-BUILDING: Russia To Sell Stake in Plant
-------------------------------------------------------
Daily Deal   June 7, 2000

Russia's Federal Property Fund on Wednesday announced a tender to
sell a 20% state-owned stake, or 976,000 shares, in the Bryansk
Machine-Building Plant(BMZ).

The 12,000-employee plant, based in Bryansk, in central Russia,
owes more than Rbl1 billion ($35.7 million) to local and central
governments.

Bids will be accepted until Aug. 28, FPF spokesman Oleg
Shevchenko said. The stake, with an initial price of Rbl45
million, is scheduled for an Aug. 31 sale.

In a related development, the FPF also announced on Wednesday it
failed to sell a 13.93% stake in OAO Ural Airlines because there
were no bids. The government offered 1.159 million shares were
offered at the initial price of just Rbl18 million.


===========================
U N I T E D   K I N G D O M
===========================

ALLIED DOMECQ: At Risk from Tax Rule
-------------------------------------------
The Times  June 8, 2000

PHILIP BOWMAN, the chief executive of Allied Domecq, last night
said that the drinks group would consider cutting its dividend in
an effort to mitigate the effect of new tax laws proposed by the
Government.

Mr Bowman added his voice to criticism of a proposed change to
tax rules for UK companies with big overseas operations, which
were outlined in the Budget by Gordon Brown, the Chancellor.

Allied Domecq would be particularly hard hit by the proposed
changes because more than 90 per cent of its revenues are made
overseas.

The new rules are designed to stop companies pooling income from
foreign businesses into "mixer companies" to average out taxes
from high-rate and low-rate regimes.

The new tax will be levied on the level of dividends paid in the
UK. If a company has to bring funds into the UK from overseas to
pay its dividends, as Allied Domecq does, its tax bill will
increase.

Mr Bowman said: "When considering our dividend policy, the board
will have to consider these changes very carefully. It [the
proposed tax] is something we could do without." Allied Domecq
would not want to scrap its dividend entirely, but cutting it was
one option to avoid being hit by the tax, Mr Bowman said.

"The tax will make paying dividends more expensive and that will
destroy value," he said. "We could return value to shareholders
by other means, such as by capital appreciation."

He said that the group would wait to see the exact effect of the
tax before acting, adding that there would be no need to alter
its dividend forecasts for this year.

PricewaterhouseCoopers, the accountancy firm, believes that the
measures, which include changes to controlled foreign companies
and double-taxation relief, will cost British business as much as
o4 billion. The Treasury disagrees, claiming that the levy will
reap just o300 million.

Digby Jones, the Director-General of the CBI, has held talks with
the Government to try to get the proposed legislation altered. He
is expected to unveil the CBI's policy on the levy in the next
two weeks.


ALLIED POLYMER: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Allied Polymer Group Ltd
Previous Name: Allied Polymer Ltd
Company No: 998364
Com. Business: Dormant
Appointed on: 23/05/00
Type: Members
Appointed by: Members
Liquidators: Michael D Rollings IPno: 8107
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


ANDREW RUBBER: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Andrew Rubber Co Ltd
Previous Name: T B Andrew Rubber Co Ltd
Company No: 316469
Com. Business: Dormant
Appointed on: 23/05/00
Type: Members
Appointed by: Members
Liquidators: Michael D Rollings IPno: 8107
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


BROOK CROMPTON: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Brook Crompton Controls Ltd
Previous Name: Brook Control Gear Ltd
Company No: 496690
Com. Business: Dormant
Appointed on: 23/05/00
Type: Members
Appointed by: Members
Liquidators: Michael D Rollings IPno: 8107
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


CAMPBELL CONCRETE: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Campbell Concrete Cutting Co Ltd
Company No: SC
Appointed on: 23/05/00
Type: Creditors
Appointed by: Creditors
Liquidators: Blair C Nimmo IPno: 8208
Firm Name: KPMG Address: 24 Blythswood Square
City Postcode: Glasgow G2 4QS


CASCADE INSULATION: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Cascade Insulation Services Ltd
Previous Name: Cascade Services Ltd
Company No: 831808
Com. Business: Dormant
Appointed on: 23/05/00
Type: Members
Appointed by: Members
Liquidators: Michael D Rollings IPno: 8107
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


CERAMIC MACHINE: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Ceramic Machine & Die Engineering Ltd
Company No: 962673
Com. Business: Dormant
Appointed on: 23/05/00
Type: Members
Appointed by: Members
Liquidators: Michael D Rollings IPno: 8107
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


EGG INTERBANK: Scrambled Expected
-------------------------------------------
The Times   June 8, 2000

THE retail offer for egg, which closes today, looks set to be
oversubscribed, despite the fact that many analysts are sceptical
about the long-term future for the stock.

Retail investors, who are limited to applying for only o1,000 of
shares, face a scaling back of their applications. Some of the
800,000 investors eligible to apply may end up with no shares at
all, or just the minimum of o200 worth.

Richard Coleman, ABN Amro banking analyst, yesterday called into
question the long-term loyalty of egg's client base, and the
impact of competition from other Internet banks. He said:
"Investors perhaps should hold up to o2 and then sell." The
unoffical grey market for egg shares was yesterday putting a
price of o1.98 on the stock, way above the o1.52 indicative price
put on the shares by Goldman Sachs, egg's bankers, valuing the
bank at o1.2 billion.

Credit Lyonnais is also negative about the float, and has put an
indicative price of o1.33 on the shares - valuing egg at o1.1
billion. It said: "Ease of moving money means that consumers can
easily move financial wealth in the face of increasingly
cutthroat competition in online financial services." However,
HSBC was positive, claiming that the risks had been built into
the price. "It is going cheap," it claimed.

Prudential, egg's parent company, is selling off 18 per cent of
the stock, with a total expected value of o150 million.


FERNCRAFT COMPONENTS: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Ferncraft Components Ltd
Company No: 3349108
Com. Business: Manufacture Wood Products
Appointed on: 23/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Gordon Craig IPno: 7983
Firm Name: Begbies Traynor
Address: 1 Winckley Court Chapel Street
City Postcode: Preston PR1 8BU


GLASS LIVING: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Glass Living (Windows) Ltd
Previous Name: Roofline 2000 Ltd
Company No: 3457432
Com. Business: Window/Conservatory Installer
Appointed on: 23/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Richard A Segal IPno: 2685
Firm Name: A Segal & Co
Address: Albert Chambers 221-223 Chingford Mount Road
City Postcode: London E4 8LP


GLOBAL PUBLISHING: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Global Publishing Corporation Ltd
Company No: 3673232
Com. Business: Publishing
Appointed on: 23/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Dean Udall IPno: 8796
Firm Name: BKR Haines Watts
Address: Holbrook Court Northumberland Road
City Postcode: Portsmouth PO5 1DS


LOGICA: Sees o1Billion Wiped Off Shares
-------------------------------------------
The Times   June 8, 2000

LOGICA was left bemused and disappointed yesterday after a
statement confirming the IT services company would beat last
year's profit by at least 50 per cent prompted investors to wipe
o1 billion off the value of its shares.

Logica said it would meet market forecasts of a pre-tax profit of
about o93 million for the year to June 30, with margins "slightly
above expectations". But investors pounced on a warning that a
recovery in orders from the finance sector, which represents
about 15 per cent of turnover, would be later than anticipated.

The company said the delayed upturn and the weak euro would leave
revenue below market forecasts.

Analysts, who had already factored in the impact of the weak
euro, said they would not change full-year forecasts of o93
million to o95 million - up strongly from o63.4 million before
goodwill last year.

However, Logica shares fell 242p, or 12 per cent, to o17.38.
One analyst said the share price slump was not a surprise after
strong gains by the entire IT sector last week.

"For a very highly valued stock, Logica has disappointed on sales
and the outlook is somewhat uncertain," he said.


Some analysts at an afternoon briefing by Andrew Given, the
finance director, also questioned Logica's exposure to large
projects, particularly in the utilities sector, where it is the
prime contractor and carries a higher degree of risk.

Mr Given said he had presented a "pretty positive message" to
analysts, concentrating on growth in the mobile telecoms and
utilities sectors, which represent 60 per cent of group revenue.

He said the company was disappointed by the fall in the share
price, which came despite "robust" growth in the order book.

"I guess there's no pleasing some people," he said.

His comments, which came just one day after a profit warning from
Synstar, sent the entire IT services sector into retreat. Sema
fell 56p to 944p, with Sage off 35p at 690p and CMG down 74p at
o10.55.


MANAGED LEARNING: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Managed Learning Ltd
Company No: 1957463
Com. Business: Educational Consultants
Appointed on: 23/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Martin T Coyne IPno: 6575
Firm Name: Poppleton & Appleby
Address: 141 Great Charles Street
City Postcode: Birmingham B3 3LG


MASON ELECTRICAL: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Mason Electrical Ltd
Company No: 3607328
Com. Business: Electrical Lighting Contractors
Appointed on: 23/05/00
Type: Creditors
Appointed by: Creditors
Liquidators: Clive Morris IPno: 8734
Firm Name: Jacksons
Address: Norwest Court Guildhall Street
City Postcode: Preston PR1 3NU


NET IMPERATIVE: Notice of Creditors' Meeting
-------------------------------------------
Insolvency UK

Company Name: Net Imperative Ltd - The
IA 1986 Section: 98 Creditors
Meeting Time: 11.00 am
Meeting date: 14/06/00
Meeting address: 84 Grosvenor Street
Meeting City Code: London W1X 9DF
Authorised by: D Lines Director
Last day for proxy: 13/06/00
Proxy address: 84 Grosvenor Street London W1X 9DF
Liquidators:
Firm Name: Kroll Buchler Phillips
Address: 84 Grosvenor Street London W1X 9DF


ROYAL DOULTON: Troubled Manufacturer Sells Royal Crown Derby
-------------------------------------------
Citywire   June 7, 2000

Troubled manufacturer Royal Doulton has sold luxury brand Royal
Crown Derby to its management as part of a longer-term strategy
to refocus the business.

The sale, for o16.5 million cash, `reflects the full value of the
business,' according to Royal Doulton chairman Hamish Grossart.
Included in the sale are the exclusive rights for Royal Doulton
to distribute Royal Crown Derby products in certain key markets
and sales channels for up to 10 years.

Royal Crown Derby, headed by managing director Hugh Gibson,
operates in Derby with over 250 staff. It reported pre-tax
profits of o1.64 million last year.

Royal Doulton has had a tough few years, with shares now standing
at less than a third of their value four years ago. Last year
sales declined rapidly, plumbing new depths in September, but
have since recovered on a month-on-month basis. A four-year
restructuring plan, designed to cut production capacity and
refocus the group, is well under way. There are still problems,
however: demand for products is greater than sales because of
long production lead times.

Shares in Royal Doulton declined a further 1p to 83.5p on the
news of the loss of one of its profitable businesses.


TOURISME VERNEY: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Tourisme Verney UK Ltd
Company No: 2832366
Com. Business: Travel Agents
Appointed on: 23/05/00
Type: Members
Appointed by: Members
Liquidators: Simon P Bower IPno: 8338 Daniel R Smith 8373
Firm Name: RSM Robson Rhodes
Address: 186 City Road
City Postcode: London EC1V 2NU


WASHINGTON DESIGN: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Washington Design Pro Manage & Dev Ltd
Company No: 1590329
Com. Business: Development Consultancy
Appointed on: 23/05/00
Type: Members
Appointed by: Members
Liquidators: Ian W Kings IPno: 7232
Firm Name: Jennings Johnson
Address: 19 Borough Road
City Postcode: Sunderland SR1 1LA


WESTERMERE LTD.: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Westermere Ltd
Company No: 3359883
Com. Business: Distribute Computer Software
Appointed on: 23/05/00
Type: Members
Appointed by: Members
Liquidators: James P Shaw IPno: 6084
Firm Name: Myers Clark
Address: Woodford House Woodford Road
City Postcode: Watford WD1 1DL


WINSTREAM LTD: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Winstream Ltd
Company No: 3166906
Com. Business: Restauranteurs
Appointed on: 23/05/00
Type: Creditors
Appointed by: Creditors
Liquidators: Salman Saud IPno: 6042
Firm Name: Rifsons Saud
Address: 105-111 Euston Street
City Postcode: London NW1 2EW


WHIZZKIDS COMPUTER: Notice of Creditors' Meeting
-------------------------------------------
Insolvency UK

Company Name: Whizzkids Computer Games Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 10.00 am
Meeting date: 14/06/00
Meeting address: 2 Rutland Park
Meeting City Code: Sheffield S10 2PD
Authorised by: G A Gee Joint Administrative Receiver 16/05/00
Last day for proxy: 13/06/00
Proxy address: 2 Rutland Park Sheffield S10 2PD
Liquidators:
Firm Name: Barber Harrison & Platt
Address: 2 Rutland Park Sheffield S10 2PD


WOOD MARKETING: Notice of Creditors' Meeting
-------------------------------------------
Insolvency UK

Company Name: Wood Marketing Services Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 11.30 am
Meeting date: 14/06/00
Meeting address: The Star Hotel Foregate Street
Meeting City Code: Worcester
Authorised by: J L Legge Director 24/05/00
Last day for proxy: 13/06/00
Proxy address: Bank House Shaw Street Worcester WR1 3DT
Liquidators:
Firm Name: Ward & Co
Address: Bank House Shaw Street Worcester WR1 3DT


WORLD OF LEATHER: Notice of Creditors' Meeting
-------------------------------------------
Insolvency UK

Company Name: World of Leather Plc
IA 1986 Section: 23 Creditors
Meeting Time: 11.00 am
Meeting date: 14/06/00
Meeting address: Middlebrook Exhibition Centre Burnden Way
Meeting City Code: Bolton BL6 6JW
Authorised by: S Allport Joint Administrator 25/05/00
Last day for proxy: 12/06/00
Proxy address: Bank House 9 Charlotte Street Manchester M1 4EU
Liquidators:
Firm Name: Arthur Andersen
Address: Uno Plc PO Box 650 Manchester M60 2SL



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 Europe is a daily newsletter co-
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and Beard Group, Inc., Washington, DC.  Peter A. Chapman and
Sharon Cuarto, Editors.

Copyright 2000.  All rights reserved.  ISSN 1529-2754.

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