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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, September 1, 2000, Vol. 1, No. 82

                                  Headlines

C Z E C H   R E P U B L I C

NOVA HUT: Signs KoB Agreement to Take CSK 750 Million Tranche


G E R M A N Y

LETSBUYIT: Loss-Making Internet Retailer Cuts Jobs
PHILIPP HOLZMANN: Troubled German Construction Firm Secures Loan


P O L A N D

CENTERTEL: TPSA's Cellular Unit H1 Loses PLN 330 Million
NETIA: First Half Net Loss Rises by 4 Percent on Debt Increase


R U S S I A

ALKONA: Court Initiates Bankruptcy Proceedings


U N I T E D   K I N G D O M

BRITISH NUCLEAR: Faces Financial Problems on ?1.5bn Shutdown Bill
CORUS: Saving 2,500 Jobs by Refitting Llanwern Blast Furnace
EDWARD MACBEAN: Clothing Company Forced into Receivership
ETRAZ LTD:  Notice of Creditors Meeting
H BEACH:  Notice of Creditors Meeting

HOWARD & DREWS:  Notice of Creditors Meeting
JOHN ANTHONY:  Notice of Creditors Meeting
K E M ENGINEERING:  Notice of Creditors Meeting
ROSSOLD LTD:  Notice of Creditors Meeting
ROTAPAK LTD:  Notice of Creditors Meeting

SEP PRESSTECH:  Notice of Creditors Meeting
SEWELLS CARAVAN:  Notice of Creditors Meeting
STERNCROSS LTD:  Notice of Creditors Meeting
T & M ENGINEERING:  Notice of Creditors Meeting
TURNSTILE SYSTEMS:  Notice of Creditors Meeting

WESCOT HIDES:  Notice of Creditors Meeting


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

NOVA HUT: Signs KoB Agreement to Take CSK 750 Million Tranche
-------------------------------------------------------------
Nova Hut announced this week that it has signed an agreement to
take the first tranche of CSK 750 million (USD 19.1 million) out
of a loan worth 2.3 billion crowns granted by Konsolidacni Banka
(KoB), Reuters reports.

The steel maker's spokeswoman, Sylva Mazurkova said, "The drawing
(of the credit) is conditioned on the agreement of the highest
creditor banks led by the International Finance Corporation with
collateral put forward by Konsolidacni Banka." She added that
Nova Hut expects to draw a similar tranche of CSK 750 million
plus a final CSK 800 million. She did not give further details on
the timetable.

The Czech state directly owns 49 percent of Nova Hut, while
Credit Suisse First Boston holds an additional 18 percent on
behalf of the government. Finance Minister Pavel Mertlik
reportedly disclosed in June that the state wanted to sell its
holdings in the steel manufacturer, which employs about 12,500.  
No timetable has been given for the sale, Reuters reports.


=============
G E R M A N Y
=============

LETSBUYIT: Loss-Making Internet Retailer Cuts Jobs
--------------------------------------------------
Reuters reports Letsbuyit.com has said it would drop one fifth of
its staff to streamline costs, even though second-quarter sales
improved 82 percent from the first quarter. The loss-making
Internet retailer said in July it was spending up to 5 million
euros a month, and announced it would decrease its workforce from
400 to 320 by centralising European procurement, logistics and
marketing activities, with most of the layoffs being temporary
staff and advisers. The job cuts are expected to result in one-
off costs totalling 1.5 million euros in the third quarter.

Letsbuyit said at its IPO that it expected to make a net loss of
110 million euros this year on sales of 48 million euros, and
plans to break even in 2003. DG Bank retail and e-commerce
analyst Holger Schwesig told Reuters the firm's expansion plans
were on target. "I don't think the expansion will be hindered.
They had to do it (job cuts) -- they didn't get 100 million euros
in the share issue so they needed to reduce marketing and
personnel expenses," he said.

Letsbuyit, which is expected to continue losing money until 2003,
allows customers to bargain for lower prices with manufacturers
of consumer goods by pooling their purchases.  


PHILIPP HOLZMANN: Troubled German Construction Firm Secures Loan
----------------------------------------------------------------
Philipp Holzmann received a DM125 million (E64 million, $57
million) loan from a government-backed agency, even as European
Commission competition authorities are reportedly contemplating
the approval of a German government rescue package for the
troubled German construction company, the Financial Times said
yesterday.  

The company, which last year announced it was on the verge of
collapsing after losses of DM2.4 billion, secured the loan from
government-backed credit agency Kreditanstalt fur Wiederaufbau,
the Times said. Holzmann head Konrad Hinrichs had reportedly
asked Berlin to put pressure on Brussels, which has yet to
approve Berlin's promise to guarantee 80 percent of a DM125
million syndicated loan. The loan reportedly was part of a
package worth DM4 billion.

German chancellor Gerhard Schroder had interceded to broker the
rescue package, which Holzmann claimed it needed to finalize
contracts worth DM 1 billion, the Times said.  


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

CENTERTEL: TPSA's Cellular Unit H1 Loses PLN 330 Million
--------------------------------------------------------
Polish telecoms firm TPSA announced losses of 330 million zlotys
($75.22 million) at cellular unit Centertel, which trailed market
leaders PTC and Polkomtel earlier in the week, but remained
optimistic that customer growth would limit full year losses,
Reuters said. TPSA's strategic shareholder in Centertel is France
Telecom, which began operating under the GSM 900 standard in
March. Centertel reportedly used to hold a more limited DCS 1800
permit.


NETIA:  First Half Net Loss Rises by 4 Percent on Debt Increase
---------------------------------------------------------------
Polish phone operator Netia announced that its net loss for the
first half of the year increased by 4 percent to PLZ 278.5
million (US$63.55 million) on increased debt. Net loss for the
three-month period ending June 30 was PLZ 214.2 million, Reuters
reports.

Netia, controlled by Sweden's Telia, said in a statement, "The
amount of the loss is mainly attributable to the cost of
servicing Netia's debt and increased debt levels, as well as
depreciation of fixed assets and amortization of goodwill and
licenses." Total net debt had increased to PLZ 4.6 billion in the
12 months ending June 30, according to Reuters.

Netia reportedly disclosed that it had entered its first currency
hedge transactions on July 31 in an effort to limit the effect of
a weaker zloty on its dollar-denominated debt.

The report says the number of Netia's subscriber lines in service
rose 48 percent to 286,259 in the last 12 months.


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

ALKONA: Court Initiates Bankruptcy Proceedings
----------------------------------------------
The Skrin Issuer reported yesterday that Sverdlovsk region
Arbitrage court has instituted bankruptcy proceedings against
Alkona (Ekaterinburg). The company has increased debt as a result
of unfavorable conditions on the commodity markets of the
Sverdlovsk region. Alkona is Sverdlovsk's largest strong drinks
producer.


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

BRITISH NUCLEAR: Faces Financial Problems on ?1.5bn Shutdown Bill
-----------------------------------------------------------------
The Observer News reports British Nuclear Fuels is facing money
troubles over ?1.5 billion in liabilities for the shutdown and
decommissioning of its first-generation Magnox nuclear power
stations.   

The price of shutting down stations safely is now reportedly
seven times greater than current figures, and is expected to
increase BNFL's total liabilities in present day values for
decommissioning nuclear sites and dealing with radioactive waste
by 13 percent, from ?11.4 to ?12.9 billion. The problem surfaced
when the Nuclear Installations Inspectorate reviewed BNFL's
decommissioning policy, the News said.


CORUS: Saving 2,500 Jobs by Refitting Llanwern Blast Furnace
------------------------------------------------------------
Corus Group Plc, the U.K.'s largest steelmaker, said it would
refit its blast furnace at Llanwern in Wales, a decision in the
hopes of saving as many as 2,500 jobs, according to union
estimates. Bloomberg said yesterday that the company will begin
discussions with suppliers shortly and hopes to complete the work
by the end of September next year.

Iron and Steel Trades Confederation General Secretary Michael
Leahy said in a statement, "Corus has honored its commitments
despite its difficulties. The ISTC has always had faith in
Llanwern and always will." Corus had announced plans to dismiss
up to 4,000 workers, comprising more than 11 percent of its UK
workforce, after profits declined in the face of a strong pound.

Corus posted a first-half loss of 156 million pounds with 40
percent of sales in Europe and two thirds of production in the
U.K. The pound has been up about 18 percent against the euro
since January 1999, Bloomberg said.


EDWARD MACBEAN: Clothing Company Forced into Receivership
---------------------------------------------------------
Ananova reports Cumbernauld-based Edward Macbean, which employs
83 people, has lost a 5.5 million-pound army uniforms contract in
May of this year to Belgian and German companies and has been
forced into receivership. The company has blamed increasing
overseas competition and the strong pound for its loss of the
clothing deal.

Ananova quoted receiver Blair Nimmo of KPMG Corporate Recovery as
saying, "The decline in the strength of the pound has caused
serious problems for the business." The company was reportedly on
the verge of signing a 3.1 million pound order to supply garments
to the Turkish police, and boasts a skilled workforce and
reputation for manufacturing products of high quality, all of
which would have made it more attractive to a potential buyer.  
"In the meantime, however, we are ceasing production and making
80 staff redundant whilst retaining a skeleton team," Nimmo said.

Macbean CEO Jim Hunter said, "Every other country in the EC takes
care of their own business except Britain. I am damn sure you
don't see a German or Belgian soldier running around in British-
made uniforms," Ananova reports.


ETRAZ LTD:  Notice of Creditors Meeting
---------------------------------------
Company Name:   Xtraz Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.00 am
Meeting date:   15/08/00
Meeting address:   78 Carlton Place
Meeting City Code:   Glasgow   G5 9TH
Authorised by:   Stephen Ashley   Director  06/07/00
Firm Name:   Pannell Kerr Forster
Address:   78 Carlton Place  Glasgow  G5 9TH


H BEACH:  Notice of Creditors Meeting
-------------------------------------
Company Name:   H Beach & Son Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.00 am
Meeting date:   15/08/00
Meeting address:   36 Harborne Road
Meeting City Code:   Birmingham   
Authorised by:   J I Hewitson   Director  01/08/00
Firm Name:   Gerald A F Coward
Address:   16 Croftdown Road  Birmingham  B17 8RB


HOWARD & DREWS:  Notice of Creditors Meeting
--------------------------------------------
Company Name:   Howard & Drews (BA) Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.00 am
Meeting date:   15/08/00
Meeting address:   George House  48 George Street
Meeting City Code:   Manchester   M1 4HF
Authorised by:   J Burns   Director  25/07/00
Firm Name:   Hodgsons
Address:   George House  48 George Street  Manchester  M1 4HF


JOHN ANTHONY:  Notice of Creditors Meeting
------------------------------------------
Company Name:   John Anthony Signs (Northern) Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   12.30 pm
Meeting date:   15/08/00
Meeting address:   The Novotel  Ponteland Road
Meeting City Code:   Kenton   NE3 3HZ
Authorised by:   F Atton   Director  28/07/00
Liquidators:   Steven Law
Firm Name:   Ensors
Address:   Cardinal House  46 St Nicholas Street  Ipswich  IP1
1TT


K E M ENGINEERING:  Notice of Creditors Meeting
-----------------------------------------------
Company Name:   K E M Engineering Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   02.30 pm
Meeting date:   15/08/00
Meeting address:   Plumtree Court
Meeting City Code:   London   EC4A 4HT
Authorised by:   W J Booth   Director  28/07/00
Last day for proxy:   14/08/00
Proxy address:   Plumtree Court  London  EC4A 4HT
Firm Name:   PricewaterhouseCoopers
Address:   Plumtree Court  London  EC4A 4HT


ROSSOLD LTD:  Notice of Creditors Meeting
-----------------------------------------
Company Name:   Rosscold Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.00 am
Meeting date:   15/08/00
Meeting address:   62 High Street
Meeting City Code:   Bristol   BS15 3DR
Authorised by:   P Notley   Director  24/07/00
Last day for proxy:   14/08/00
Proxy address:   62 High Street  Bristol  BS15 3DR
Firm Name:   J W Lewis & Co
Address:   62 High Street  Bristol  BS15 3DR


ROTAPAK LTD:  Notice of Creditors Meeting
-----------------------------------------
Company Name:   Rotapak Ltd
IA 1986 Section:   23  Creditors
Meeting Time:   10.00 am
Meeting date:   15/08/00
Meeting address:   Swallow Hotel  West Bawtry Road
Meeting City Code:   Rotherham   S60 4NA
Authorised by:   D K Dattani   Joint Administrator  18/07/00
Last day for proxy:   14/08/00
Proxy address:   Eastgate House  Humberstone Road  Leicester  LE5
3GJ
Firm Name:   BDO Stoy Hayward
Address:   Eastgate House  Humberstone Road  Leicester  LE5 3GJ


SEP PRESSTECH:  Notice of Creditors Meeting
-------------------------------------------
Company Name:   SEP Presstech Ltd
IA 1986 Section:   23  Creditors
Meeting Time:   12.30 pm
Meeting date:   15/08/00
Meeting address:   Birmingham Botanical Gardens  Westbourne Road
Meeting City Code:   Birmingham   B15 3TR
Authorised by:   S R Thomas   Joint Administrator  07/07/00
Last day for proxy:   14/08/00
Proxy address:   Sherlock House  7 Kenrick Place  London  W1U 6HE
Firm Name:   Horwath Clark Whitehill & Co
Address:   Sherlock House  7 Kenrick Place  London  W1U 6HE


SEWELLS CARAVAN:  Notice of Creditors Meeting
---------------------------------------------
Company Name:   Sewells Caravan Centre Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.30 am
Meeting date:   15/08/00
Meeting address:   Fairview House  15 Victoria Place
Meeting City Code:   Carlisle   CA1 1EW
Authorised by:   E Sewell   Director  03/08/00
Last day for proxy:   14/08/00
Proxy address:   Fairview House  15 Victoria Place  Carlisle  CA1
1EW
Firm Name:   Armstrong Watson
Address:   Fairview House  15 Victoria Place  Carlisle  CA1 1EW


STERNCROSS LTD:  Notice of Creditors Meeting
--------------------------------------------
Company Name:   Sterncross Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.00 am
Meeting date:   15/08/00
Meeting address:   221-223 Chingford Mount Road
Meeting City Code:   London   E4 8LP
Authorised by:   N Papper   Director  31/07/00
Firm Name:   A Segal & Co
Address:   221-223 Chingford Mount Road  London  E4 8LP


T & M ENGINEERING:  Notice of Creditors Meeting
-----------------------------------------------
Company Name:   T & M Engineering (Blackburn) Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.00 am
Meeting date:   15/08/00
Meeting address:   Charter House  166 Garstang Road
Meeting City Code:   Preston   PR2 8NB
Authorised by:   T Brown   Director  03/08/00
Firm Name:   THR
Address:   Charter House  166 Garstang Road  Preston  PR2 8NB


TURNSTILE SYSTEMS:  Notice of Creditors Meeting
-----------------------------------------------
Company Name:   Turnstile Systems Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.30 am
Meeting date:   15/08/00
Meeting address:   The Post House Hotel  Marborough Road
Meeting City Code:   Swindon   SN3 6AQ
Authorised by:   R Gegg   Director  
Firm Name:   Kelmanson Partnership
Address:   Avco House  6 Albert Road  Barnet  EN4 9SH


WESCOT HIDES:  Notice of Creditors Meeting
------------------------------------------
Company Name:   Wescot Hides Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   12.00 pm
Meeting date:   15/08/00
Meeting address:   365 West George Street
Meeting City Code:   Glasgow   G2 4LH
Authorised by:   Robert Carss   Director  04/08/00
Firm Name:   Kenneth A Ross & Sharkey
Address:   375 West George Street  Glasgow  G2 4LH



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-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA.  Lexy Mueller and
Joan Florido, Editors.

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

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