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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

          Tuesday, June 20, 2000, Vol. 1, No. 31


                       Headlines

C Z E C H   R E P U B L I C

INVESTICNI A POSTOVNI: Gradually Stripped of Most Valuable Assets
INVESTICNI A POSTOVNI: CB Puts Bank Under Forced Administration


U N I T E D   K I N G D O M

ALPHA AIRPORTS: Airport Caterer Flies into Trouble
CASHMERE STORES: Notice of Creditors Meeting
CORUS STEEL: Faces Mounting Losees to Cut 1,500 Jobs
DELIVERIES DIRECT: Notice of Creditors Meeting
FORAGE BOX: Notice of Creditors Meeting

GEORGE SMITH: Notice of Creditors Meeting
INTERACTIVE INVESTOR: Shares Slump 12% on Warning
PORTLAND SHEET: Notice of Creditors Meeting
POST OFFICE: Payments Fiasco Puts State-Owned Group in the Red
QUALITY ASSURANCE: Notice of Creditors Meeting
RUNDELL LTD: Notice of Creditors Meeting


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C Z E C H   R E P U B L I C
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INVESTICNI A POSTOVNI: Gradually Stripped of Most Valuable Assets
-----------------------------------------------------------------
CTK    June 16, 2000

The stabilisation of Investicni a Postovni banka (IPB) may turn
out to be much more expensive for the government than it had
thought, the daily Mlada fronta Dnes (MfD) writes today.

MfD claims that the bank's managers have been transferring IPB's
most valuable subsidiaries to IPB Group Holding owned by the
Burns Schwartz law company.

"If the government, in the interest of protecting depositors,
takes over control of the bank and wants to sell it to a
strategic partner, its price may be considerably lower once it is
deprived of its lucrative holdings," MfD writes.

IPB Group Holding reportedly already owns the pension fund and
has an option for the purchase of the IPB Pojistovna insurance
company, the company owning Prima TV, the PIAS investment
company, and others. Experts estimate the value of these assets
at billions of crowns, and investor interest in them is great.
The German insurer Allianz, for example, is interested in buying
IPB Pojistovna.

Former IPB board member and current board chairman of IPB Group
Holding Alfred Sebek has confirmed to the daily that the holding
was at the moment working for the acquisition of IPB Pojistovna.
"We are waiting for the opinion of the Fiannce Ministry... and I
think nothing stands in the way of the ... acquisition," he told
the paper.

IPB Group Holding can buy the stakes for which it has an option
for the price set by independent auditors PriceWaterhouseCoopers,
he said.

Concern about possible transfers of assets is complicating the
position of government negotiators, working on the bank's
stabilisation. "This matter is the subject of negotiations.
Nomura has suggested that the buyer of the bank would have access
to the holding company's assets, but it is not quite clear," MfD
quotes a well-informed source and adds that the setting up of the
holding company was approved by shareholders at the annual
general meeting (AGM) last autumn.

It was decided at the AGM that IPB shareholders would be able to
exchange their IPB shares at a 1:1 ratio for the shares of the
holding company. At the same time it was decided that IPB's
subsidiaries would be purchased from the bank and under the
holding company's umbrella would actually become IPB's sister
companies.

"If the shares were exchanged, current shareholders of IPB would
have their shares covered with the same assets as they have so
far. But if assets are transferred before the exchange of shares,
it is only the shareholders who control the holding company who
will benefit," MfD says referring to its source.

IPB Group Holding is owned by Burns Schwartz, v.o.s. which in
turn is owned by two individuals. The composition of the board of
directors and supervisory board suggests that it is controlled by
IPB managers, and Nomura's Randall Dillard and Eduard Onderka,
MfD says.

According to Finance Ministry spokesman Libor Vacek, the
information about possible transfers of assets to the holding
company smacks of crime. "If the information is proved to be
true, it would most probably accelerate government intervention,
because these activities resemble criminal activity," Vacek told
MfD.


INVESTICNI A POSTOVNI: CB Puts Bank Under Forced Administration
-------------------------------------------
Czech AM    June 19, 2000

The Czech National Bank (CNB) placed Investincni A Postovni (IPB)
under forced administration on Friday in response to a three-day
run on the bank by depositors. The forced administrators, headed
by former Agrobanka forced administrator Petr Stanek, were
escorted into the bank by armed police. The CNB said the troubled
bank, which controls Kc 323 bln ($8.6 bln) in assets, had been
pumping cash out of mandatory reserves to fill the gap.

According to an IPB source, the CNB earlier in the day had
extended the bank a Kc 50 bln loan to bolster liquidity. It
appears that a number of transactions have put IPB Group Holding
- and not the bank - in charge of tens of billions of crowns in
assets, many in the form of option contracts concerning some of
IPB's most lucrative companies. Stanek says the forced
administration should last only a few months and that the search
for a new strategic investor will start immediately. A Cabinet
resolution calls for CSOB to become IPB's strategic partner.


============================
U N I T E D   K I N G D O M
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ALPHA AIRPORTS: Airport Caterer Flies into Trouble
--------------------------------------------------
Citywire  June 16, 2000

Shares in caterer Alpha Airports lost 8% this morning after it
issued a severe profit warning, attributed to a `major loss of
business' in the group's Paris Orly kitchen.

Alpha blamed Paris Orly's trading, which has been below
expectations, on Aeroports de Paris' decision to move long haul
international flights to Paris Charles de Gaulle.

Efforts to downsize, remodel or form a joint venture have been
unsuccessful, and a trading loss of ?1.3 million is expected in
the first half of 2000/01.

Talks with employees over the kitchen's future have begun, though
closure could cost up to ?2.5 million.

Shares fell 3.5p to 43p.


CASHMERE STORES: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Cashmere Stores of Scotland Ltd - The
IA 1986 Section: 98 Creditors
Meeting Time: 12.00 pm
Meeting date: 22/06/00
Meeting address: Lorn House Albany Street
Meeting City Code: Oban Authorised by: R Kenneth M Taylor
Liquidators:
Firm Name: Moore Stephens Booth White
Address: Allan House 25 Bothwell Street Glasgow G2 6NL


CORUS STEEL: Faces Mounting Losees to Cut 1,500 Jobs
-------------------------------------------
LONDON, June 16 (AFP) - The Corus steel group, formed from the
merger last year of British Steel and the Dutch Hoogovens, said
on Friday that in the face of mounting losses it would cut almost
1,500 jobs in Britain.

The shedding of 1,430 jobs would reduce costs and help the
company implement more flexible working conditions, it said.

The job cuts were prompted in part by strength of the pound,
which makes British exports overseas relatively more expensive,
by a decline in demand for steel in Britain and by the over-
capacity of the European steel industry.


DELIVERIES DIRECT: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Deliveries Direct (Moston) Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 12.00 pm
Meeting date: 22/06/00
Meeting address: Sahaj-Anand Business Centre 10 Park Road
Meeting City Code: Manchester M4 4EY
Authorised by: M Hirst Director 02/06/00
Liquidators: A J Nichols
Firm Name: Redman Nichols
Address: 27 Peterborough Road Harrow HA1 2BZ


FORAGE BOX: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Forage Box Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 12.00 pm
Meeting date: 22/06/00
Meeting address: Langley House Park Road East Finchley
Meeting City Code: London N2 8EX
Authorised by: K J Quinn Director 24/05/00
Last day for proxy: 21/06/00
Proxy address: Langley House Park Road East Finchley London N2
8EX
Liquidators:
Firm Name: Langley & Partners
Address: Langley House Park Road East Finchley London N2 8EX


GEORGE SMITH: Notice of Creditors Meeting
-------------------------------------------
Company Name: George Smith & Sons (Northwest) Ltd
Other name: Eclipse Prints
IA 1986 Section: 98 Creditors
Meeting Time: 11.30 am
Meeting date: 22/06/00
Meeting address: Downs Court Business Centre 29 The Downs
Meeting City Code: Altrincham
Authorised by: S M Hall Director 18/05/00
Liquidators: Nola Barber
Firm Name: Lines Henry
Address: 27 The Downs Altrincham WA14 2QD


INTERACTIVE INVESTOR: Shares Slump 12% on Warning
-------------------------------------------------
The Independent  June 17, 2000

Interactive Investor International, the financial website,
yesterday warned it would have to cut back severely on marketing
costs and cast doubts over its European expansion strategy.

The company, which floated earlier this year, saw its shares dive
12 per cent to close at 56.5p after the warning, having been as
low as 36.5p yesterday morning. Floated at 150p in February, the
stock was as high as 415p at the beginning of March.

Interactive Investor said that it had been hit by the decline in
equity market activity since March, which has seen as severe
correction in technology stocks. It said that there would only be
"modest" growth in revenues in the second half of the year,
compared with the ?2.8m turnover for the six months to 31 March.

It made a loss of ?9.6m for that period.

It said that transactional revenues from stock trading, which
accounted for 29 per cent of its first half turnover, were
depressed, as was income from the construction and operation of
trading systems. In addition, it said that sponsorship earnings
from stock brokers had been hit by capacity constraints.

Tomas Carruthers, chief executive, said the company would have to
cut "many millions" from its marketing expenditure plans and
concentrate on existing users. At the time of the flotation,
Interactive Investor said it would spend ?33m over the next two
years on marketing.

The company said also said that "increased emphasis" will now be
placed on strengthening its presence in the UK.

Analysts said it pointed to a possible abandonment of Interactive
Investor's expansion plans for continental Europe. Mr Carruthers
said that company would now only enter Europe by forming local
partnerships, rather than use advertising to build business from
scratch. He said he was in talks with potential partners.

Justin Bates at Charterhouse Securities, said: "I don't see how
this company is ever going to make money in its present form. The
announcement shows up the deficiencies in its business model, and
those of all business-to-consumer sites."

Mr Bates yesterday increased his forecast losses for the current
year from ?16m to ?20.4m.


PORTLAND SHEET: Notice of Creditors Meeting
-------------------------------------------
Insolvencey UK

Company Name: Portland Sheet Metal Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 10.30 am
Meeting date: 22/06/00
Meeting address: Alfreton Travelodge Old Swanwick Colliery Road
Meeting City Code: Alfreton DE55 1HJ
Authorised by: D C Dransfield Director
Last day for proxy: 21/06/00
Proxy address: Regents Park House Regent Street Leeds LS2 7QJ
Liquidators: Colin A Sefton
Firm Name: Capital Insolvency Services
Address: Regents Park House Regent Street Leeds LS2 7QJ


POST OFFICE: Payments Fiasco Puts State-Owned Group in the Red
-------------------------------------------
The Sunday Times   June 18, 2000

THE Post Office will report its first full-year loss for almost a
quarter of a century tomorrow. The state-owned group is expected
to announce a deficit of almost ?250m for the year that ended in
March.

The loss was foreshadowed in December when the Post Office
reported a half-year deficit of ?386m, entirely caused by the
government's decision to abandon the development of Pathway, a
computerised social security benefit payments system that was to
have been installed throughout the Post Office network. Instead,
the government decided to route payments through the clearing
banks.

Scrapping Pathway forced the Post Office to write off ?571m of
costs incurred on the project. It also triggered warnings by the
Federation of Sub-Post Masters that half Britain's 19,000 sub-
post offices could close because of the loss of additional over-
the-counter sales associated with social security payments, which
account for about 35% of most branches' income.

John Roberts, Post Office chief executive, has also expressed
doubts that the organisation can replace all the business it has
lost through the benefits decision.

The Post Office funded the Pathway write-off from reserves, and
will also pay the ?175m dividend it owes the government from
reserves. Excluding the write-off, it made a profit of ?136m in
the second half, down from an underlying ?185m first-half profit.

That figure itself was down on the corresponding 1998/99 figure,
and the declining profits trend reflects the growing pressure on
the Post Office from increasing competition.

A new threat emerged in April, when the European Council of
Ministers called for liberalisation of postal services to be
speeded up. Full liberalisation is political dynamite, because it
would threaten the Post Office's national pricing policy and
could affect its universal service obligation.

Inside the Cabinet, a row is brewing between Stephen Byers, trade
and industry secretary, who wants to see more competition into
postal services and may favour partial privatisation, and Gordon
Brown, the chancellor, who believes the status quo guarantees
continued dividends to the Treasury. Other countries, notably
Germany and the Netherlands, are overtaking Britain in the
commercialisation of their post offices.

The Dutch post office is already a public company and Deutsche
Post is due to float in the autumn.

By contrast, the government's reforms have been limited. From
next April, the Post Office will become a company with the right
to spend up to ?75m before it has to seek authorisation from the
government, its sole shareholder.


QUALITY ASSURANCE: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Quality Assurance Testing Services Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 11.45 am
Meeting date: 22/06/00
Meeting address: Romney House Romney Place
Meeting City Code: Maidstone ME15 6LG
Authorised by: B L Pratt Director 07/06/00
Liquidators: I D Holland
Firm Name: Ian Holland & Co
Address: Parkville House 16 Bridge Street Pinner HA5 3JP


RUNDELL LTD: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Rundell Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 03.30 pm
Meeting date: 22/06/00
Meeting address: 295 Whitechapel Road
Meeting City Code: London E1 1BY
Authorised by: M Islam Director
Last day for proxy: 21/06/00
Proxy address: 295 Whitechapel Road London E1 1BY
Liquidators: M Pocock
Firm Name: Pococks
Address: 295 Whitechapel Road London E1 1BY



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