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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 22, 2000, Vol. 1, No. 97


                        Headlines

C Z E C H   R E P U B L I C

CEZ: Prague May Sell Power Utility
INVESTICNI A POSTOVNI: Shareholders Owed Kc 25-43 Billion


G E R M A N Y

GIGABELL: Needs Cash of 26 Million Euros
PIXELPARK AG:  Posts Net Loss 10.3 Million Eur
PHILIPP HOLZMANN: Government Seeks Speedy End of Probe


I R E L A N D

HARLAND & WOLFF: Global Order to Hand Over $31 Million


R U S S I A

SAMARA WINERY: Declares Insolvency  


U N I T E D   K I N G D O M

ADTRANZ DAIMLER: Balfour Buys Unit for 94 Million Pounds
ALCESTER MOTORS:  Liquidation Proceedings
BARROWMEAD LTD:  Liquidation Proceedings
BELLINGTON LTD:  Liquidation Proceedings
BRIT INSURANCE: Reports Pre-Tax Losses of 13.7 Million Pounds

BUDGENS: To Wind Up its E-commerce Operations
COPEMAN GOLF:  Liquidation Proceedings
CORUS: Higher Gas Prices to Hit Steel Firm for Extra 45 Million
DMS WHOLESALERS:  Liquidation Proceedings
EQUITABLE LIFE: Merrill Lynch to Advise Aegon on Bid

FOREST RECRUITMENT:  Liquidation Proceedings
FRUHMAN DAVIES:  Liquidation Proceedings
HALESOWEN C N C:  Liquidation Proceedings
INDEPENDENT ENERGY: Books Debts of 330 Million Pounds
INFOSIS: E-business in Liquidation

LEGACY ASSOCIATES:  Liquidation Proceedings
MARKS & SPENCER: GMB Union Parades Against Troubled Retailer
MARKS & SPENCER: Shares Slide on Broker Downgrades
MILLENIUM DOME: E & Y Defends Dome Audit Role
NORTHERN CHEMICAL:  Liquidation Proceedings

PEPTIDE THERAPEUTICS: Posts First-Half Pre-Tax Losses


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

CEZ: Prague May Sell Power Utility
----------------------------------
The Czech government is considering selling CEZ, the country's
dominant power utility, together with the national grid and the
regional distribution companies to one strategic -- probably
foreign -- investor. Euromoney reports CEZ is one of the most
valuable companies left in state hands, with a market
capitalization alone of $1.7bn. The plan is certain to anger
foreign energy companies that have taken minority stakes in
regional distributors in hopes of buying the state's majority
stakes when they are eventually privatized.

If the cabinet fails to decide on the process this year, any sale
may not be completed by the next election in June 2002.
Electricite de France (EdF) and National Power of the UK are
considered the frontrunners. Edf is said to be favored by the
industry ministry because it has a similar vertically integrated
structure and strong experience with nuclear power. Around 40
percent of CEZ's energy will be nuclear after the controversial
Temelin plant, due to start up this month, is in full operation.

"The new partner should be experienced with operating nuclear
power plants," said Jaroslav Mil, CEZ chief executive. "National
Power does not have big experience with nuclear power. They would
have to join with someone who does."


INVESTICNI A POSTOVNI: Shareholders Owed Kc 25-43 Billion
---------------------------------------------------------
Reuters reported yesterday that Nomura International head Randall
Dillard said shareholders of bank IPB are owed 25 to 43 billion
crowns. IPB was placed under forced administration and its assets
sold to rival bank CSOB in June. The Czech central bank (CNB)
took over management of IPB following a run on deposits after
reports it would post a huge 1999 loss. Three days later, the
state sold IPB's entire balance sheet to CSOB, a unit of
Belgium's KBC Bank. Two audits, which will be completed next
March, will determine the sale price that CSOB must pay.

CSOB will pay nothing to Nomura ally Saluka Investments which
owns a 46 percent stake in IPB or IPB's other shareholders if the
audits show that IPB's worth is negative, which is widely
expected.

The central bank and the Finance Ministry have defended the move
to sell IPB quickly to CSOB, saying that the swift move prevented
a massive deposit flight that could have multiplied the cost of
saving the bank. Nomura has repeatedly said it is not connected
with Saluka, the IPB shareholder, but has never revealed who
controls the firm, which it describes as a trust. Nomura was the
initial buyer of the IPB stake in 1998. It later transferred the
shares to Saluka, and has regularly handled Saluka-related
business concerning IPB. Dillard was on IPB's supervisory board
prior to the forced administration, Reuters said.


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

GIGABELL: Needs Cash of 26 Million Euros
-----------------------------------------
Trading of shares in Gigabell, the insolvent German Internet
company, resumed after being suspended. The shares fell by over
70 percent to 3.5 euros, although they rose again to 4.23 euros
later in the day. The shares were issued in August 1999 at 38
euros and reached a peak of 123 euros in March, Suddeutsche
Zeitung & World Reporter reported yesterday.

Gigabell is the first company on the Neuer Markt stock exchange
to file an insolvency petition. At the start of July, Gigabell
admitted it had liquidity problems, but then a preliminary
contract with a British company, which was to result in a cash
injection of 26m euros, was concluded. A contract on a capital
increase of DM48m was concluded in August, but Gigabell will not
receive the capital promised by the British company until 2002.


PIXELPARK AG:  Posts Net Loss 10.3 Million Eur
----------------------------------------------
AFX reported yesterday that Pixelpark AG showed a net loss of
10.3 mln euros for the year ending June 30. Pixelpark chairman
Paulus Neef said at a press conference that in the current year
the company expects a high growth rate. Analysts had forecasted a
net loss of 12 mln eur, and sales of 59 mln eur.


PHILIPP HOLZMANN: Government Seeks Speedy End of Probe
------------------------------------------------------
Berlin is stepping up pressure on Brussels to complete its
investigation of the German government-backed rescue package for
Philipp Holzmann, the construction group that teetered on the
brink of insolvency last year, Financial Times reported
yesterday. Caio Koch-Weser, Germany's deputy finance minister, is
understood to have expressed impatience with the delay during
recent talks with Mario Monti, the competition commissioner.
Holzmann said that the German government was pushing for a rapid
conclusion to the investigation.

According to Financial Times a German finance ministry official
said Mr Koch-Weser had urged Brussels to "speed up" its
deliberations. The EU's competition watchdog has been
deliberating since January on whether to approve DM250m (E128m,
$110.3m) in government aid to Holzmann, part of a total
restructuring plan valued at about DM4.3bn. Brussels insists the
inquiry is running to a normal time schedule and could take up to
18 months. It is understood the commission has not yet selected
an external consultant to help it examine the effect of the aid
on the German construction market.


=============
I R E L A N D
=============

HARLAND & WOLFF: Global Order to Hand Over $31 Million
------------------------------------------------------
Hart's E & P Daily reported earlier this week that Global Marine
has been ordered by an industrial arbitration tribunal to hand
over US $31m it owes to struggling UK fabrication yard Harland &
Wolff. The ruling relates to the dispute over the construction of
two drill ships for the drilling contractor. The cash, payable by
September 28 is slated to help fund a restructuring of the
Belfast yard, with the support of its parent company, Fred Olsen
Energy ASA.

Brynjulv Mugaas, H&W chief executive, said: "The ruling brings to
an end the deplorable and thankfully futile attempt of Global
Marine to bankrupt Harland & Wolff by withholding the delivery
installment due. This decision has galvanized our determination
to succeed in the expected arbitration to recover the balance of
monies due by Global Marine for work completed."

Mugaas added that the court's decision "should reduce the
uncertainties and restore market confidence in Harland & Wolff,
thereby assisting us to bring potential major orders to fruition.
We shall continue to strenuously pursue efforts to win short and
long term contracts."


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

SAMARA WINERY: Declares Insolvency  
----------------------------------
Skrin Issuer reported yesterday that Samara Property Fund has
announced the sale of a 44.7 percent stake in Samara winery,
which has been declared insolvent. A block of 3 960 870 common
shares is for sale with a starting price of RUR 2000.


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

ADTRANZ DAIMLER: Balfour Buys Unit for 94 Million Pounds
--------------------------------------------------------
Financial Times reported yesterday that Balfour Beatty, the UK
construction and engineering company has bought Adtranz Daimler
Chrysler Rail Systems for 94 million pounds ($132.6m) in a deal
which will help it expand its rail business into China, Sweden
and Spain.

Adtranz, which is on course to break even after several years of
losses, is to be sold to Bombardier of Canada for $725m in a deal
agreed last month. This will make Bombardier the leader in the
$23bn rail equipment industry ahead of Alstom of France. However
Bombardier is primarily interested in the rolling stock and
signaling activities of Adtranz and not in the track equipment
business.

Adtranz has been keen to spin off the division that makes
trackside electrical systems and equipment as well as its
signaling sector. Alstom, the French power and transport company,
Alcatel, the communication equipment maker and Invensys have
previously shown an interest in the trackside equipment division.
The Adtranz business designs and installs railway electrification
systems for customers including Deutsche Bahn in Germany and
Renfe in Spain, according to Financial Times.


ALCESTER MOTORS:  Liquidation Proceedings
-----------------------------------------
Company Name:   Alcester Motors Ltd
Previous Name:   Avon Autos (UK) Ltd
Company No:   2837550
Com. Business:   Garage
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Henry E Hayes  IPno: 5450    
Firm Name:   Poppleton & Appleby
Address:   141 Great Charles Street
City Postcode:   Birmingham  B3 3LG


BARROWMEAD LTD:  Liquidation Proceedings
----------------------------------------
Company Name:   Barrowmead Ltd
Company No:   2749758
Com. Business:   Ground Contractors
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Timothy C Ball  IPno: 8081    
Firm Name:   Mazars Neville Russell
Address:   Clifton Down House  Beaufort Buildings
City Postcode:   Bristol  BS8 4AN


BELLINGTON LTD:  Liquidation Proceedings
----------------------------------------
Company Name:   Bellington Ltd
Com. Business:   Restaurant Properietors
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Eric W Sheppard  IPno: 6043    
Firm Name:   Poppleton & Appleby
Address:   1 Harlands Close
City Postcode:   Haywards Heath  RH16 1PS


BRIT INSURANCE: Reports Pre-Tax Losses of 13.7 Million Pounds
-------------------------------------------------------------
Brit Insurance reported a 600,000 pound increase in pre-tax
losses to 13.7 million pounds for the first six months of the
year, The Times reported yesterday. The company also said it
would close a Lloyd's names agency and sell a third party capital
management business because they were outside its strategic
focus.

Jo Welman, the chairman, put the cost of withdrawal from the
businesses at no more than 350,000 pounds but said there would be
on-going cost savings of 320,000 pounds a year as a result. Neil
Eckert, chief executive, admitted that the company had lost a lot
of money over the past 18 months. The company has radically
changed its structure over the past year.


BUDGENS: To Wind Up its E-commerce Operations
---------------------------------------------
Financial Times reported yesterday that Budgens, the UK food
retailer, announced that it would wind up its e-commerce
operations because of low customer interest in the service. The
company, which has 190 supermarkets and neighborhood convenience
stores in the UK, will bring its online business to a halt on
September 25, after deciding that, "its performance has not met
expectations".

Martin Hyson, chief executive, said: "The phased launch of our
Internet shopping service has established that at this stage
there is a low level of customer interest. Whilst we will
continue to offer home delivery from selected stores, we have
decided to cease the Internet operation. We believe that we can
continue to deliver greater value to our shareholders by
focussing on our core proposition of fresh food based
neighborhood stores."


COPEMAN GOLF:  Liquidation Proceedings
--------------------------------------
Company Name:   Copeman Golf World Ltd
Company No:   3414569
Com. Business:   Golf Equipment Retailer
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Geoffrey Martin  IPno: 2207    
Firm Name:   Geoffrey Martin & Co
Address:   St James House  28 Park Place
City Postcode:   Leeds  LS1 2SP


CORUS: Higher Gas Prices to Hit Steel Firm for Extra 45 Million
---------------------------------------------------------------
Anglo-Dutch steel company Corus faces a sharp rise in fuel costs
as its leading European competitor, Usinor, signalled a slowdown
in demand for steel, Financial Times reported yesterday.

The UK arm of Corus, which comprises the former British Steel
plants, faces a 75 percent jump in its gas bill, a cost that will
hit the steel manufacturer's bottom line with a charge of 45
million pounds. The surge in gas prices will add more red ink to
the accounts of Corus, which have been hit by the weakness of the
euro over the past year. Analysts are forecasting a net loss of
some 290 million pounds, without rising energy costs, FT said.

The former British Steel plants are struggling with weak domestic
demand and competition from euroland. Demand for steel in Europe
also seems to be close to a downturn after a profit warning from
Usinor. The French company said profits would slip in the second
half. Usinor normally sees a seasonal slowdown but it said this
would be worsened by the need to cut production to reduce
inventories. UK gas prices have almost doubled this year as
energy companies rushed to sell their gas in mainland Europe
where prices are linked to the cost of oil.


DMS WHOLESALERS:  Liquidation Proceedings
-----------------------------------------
Company Name:   DMS Wholesalers Ltd
Company No:   3893815
Com. Business:   Security Equipment/Phone Supply
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Ian Franses  IPno: 2294    
Firm Name:   Ian Franses Associates
Address:   Conduit House  24 Conduit Place
City Postcode:   London  W2 1EP


EQUITABLE LIFE: Merrill Lynch to Advise Aegon on Bid
----------------------------------------------------
Aegon, the Dutch insurance group that owns Scottish Equitable,
has entered the bidding for Equitable Life, the life insurer
forced to put itself up for sale after a defeat in the House of
Lords over pension rights, Financial Times reported yesterday.
The group is understood to have appointed Merrill Lynch, the US
investment bank, to advise it on tabling a bid for Equitable
Life, which is valued at up to ?5bn. Aegon also owns the life and
pensions business of Guardian Royal Exchange, which it bought
from Sun Life & Provincial in October last year.

A bid for Equitable would bring its funds under management to
more than ?70bn. Prudential has already hired Morgan Stanley Dean
Witter to help it table a bid for the company. Other interested
parties are thought to include Axa, the French insurer, Allianz,
the German insurance group that is being advised by CSFB, and
CGNU. GE Capital, which this week ended talks with Scottish
Provident, the smaller Scottish mutual, could now turn its
attention to Equitable Life, FT reports.


FOREST RECRUITMENT:  Liquidation Proceedings
--------------------------------------------
Company Name:   Forest Recruitment Ltd
Previous Name:   Optimum Recruitment (MK) Ltd
Company No:   3540511
Com. Business:   Staff Recruitment
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Peter J Windatt  IPno: 8611  Ian Q Taylor  5243
Firm Name:   Smith Dove
Address:   Glenroyd House  96-98 St James Road
City Postcode:   Northampton  NN5 5LG


FRUHMAN DAVIES:  Liquidation Proceedings
----------------------------------------
Company Name:   Fruhman Davies & Co Services Ltd
Company No:   3200144
Com. Business:   Staff Services
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   J Simon Westhead  IPno: 3735    
Firm Name:   Waterworths
Address:   Central Buildings  Richmond Terrace
City Postcode:   Blackburn  BB1 7AP


HALESOWEN C N C:  Liquidation Proceedings
-----------------------------------------
Company Name:   Halesowen C N C Machining Ltd
Company No:   2091504
Com. Business:   General Mechanical Engineering
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   K J Watkin  IPno: 5276    
Firm Name:   K J Watkin & Co
Address:   Emerald House  20 Anchor Road  Aldridge
City Postcode:   Walsall  WS9 8PH


INDEPENDENT ENERGY: Books Debts of 330 Million Pounds
-----------------------------------------------------
Accountants in the corporate recovery department of KPMG this
week began the complicated task of piecing together how
Independent Energy, the entrepreneurial electricity and gas
supplier, plunged from a capitalization of 1.5 billion pounds to
receivership in just six months, The Times reported yesterday.
The main reason for the Independent Energy's demise, its
inability to collect payments from its customers, had been
evident since the beginning of this year.

According to The Times, Independent's collapse, with book debts
totaling 330 million pounds, was the first in the deregulated
electricity and gas sector. Independent's problems began when it
decided to move into the fiercely competitive residential
electricity supply market.

A class action was filed in the U.S. District Court in New York
just days before the company went into receivership on behalf of
all investors who bought shares in the March fundraising, The
Times said.


INFOSIS: E-business in Liquidation
----------------------------------
Ian Rankin and Nick Reed of PricewaterhouseCoopers in Leeds have
been appointed liquidators of e-business group Infosis. The Web
publishing company, which employs 100 people at its premises in
Market Weighton, has a turnover of about 1 million pounds. Any
parties interested in purchasing the business should contact the
liquidators, Yorkshire Post reports.


LEGACY ASSOCIATES:  Liquidation Proceedings
-------------------------------------------
Company Name:   Legacy Associates Ltd
Previous Name:   Cyrus Associates Ltd
Company No:   3460652
Com. Business:   Retail Reconditioned Computers
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Bernard Hoffman  IPno: 1593  Ian Yerrill  8924
Firm Name:   Gerald Edelman
Address:   Suite 105  Kent House  Station Road
City Postcode:   Ashford  TN23 1PP


MARKS & SPENCER: GMB Union Parades Against Troubled Retailer
------------------------------------------------------------
Troubled retailer Marks & Spencer has paid 1.2 million pounds to
three directors who left following a slump in clothing sales,
Ananova reported earlier this week. Peter Salsbury, who resigned
as chief executive, is to receive a year's salary of 560,000
pounds, while UK stores director Clara Freeman is being paid
260,000 pounds and international retail director Guy McCracken
will receive 390,000 pounds.

The pay-offs were attacked as "obscene" by the GMB union, which
paraded a live pig outside the TUC Congress in Glasgow last week
to highlight its campaign. General secretary John Edmonds said:
"It is bad enough that these directors are being rewarded for
failure, but their failure has been built on the lost jobs and
livelihoods of thousands of workers. For Marks & Spencer to give
such huge pay outs to directors while it rejected any
compensation for the workers who were sacked is a disgrace."


MARKS & SPENCER: Shares Slide on Broker Downgrades
--------------------------------------------------
AFX  reported earlier this week that the shares in struggling
retailer Marks & Spencer PLC fell as analysts cut full year
forecasts after M&S issued a "disastrous" trading statement
alongside the news of the departure of chief executive Peter
Salsbury, dealers said.

M&S confirmed that Roger Holmes has been appointed managing
director of UK retail and reported that UK retail sales in the 24
weeks to Sept 16 rose by just 0.8 pct. Total general sales were
down 0.3 pct for the 24 week period, reduced by an estimated 21
mln stg, or 1.2 pct, as a result of the dispute over fuel prices
in the UK last week. UBS Warburg reiterated its 'hold' stance,
with a 225 pence price target, according to AFX report.


MILLENIUM DOME: E & Y Defends Dome Audit Role
---------------------------------------------
Ernst & Young has defended its position as auditors to the
troubled Millenium Dome as police were called in to investigate
allegations of fraud, Accountancy Age reported earlier this week.
The New Millennium Experience Company, operator of the Dome, has
passed details of the fraud to Scotland Yard's fraud squad after
contract procurement irregularities came to light earlier in the
year.

In a statement, the NMEC said: 'The Dome's rigorous internal
control systems identified a possible irregularity relating to
one contractor. The police have been kept informed since June.'
However, a leaked report from PricewaterhouseCoopers cast serious
doubts over financial controls at the NMEC. The PwC report also
revealed that the Dome would technically have been insolvent
without the new injection of cash, questioning the role of its
directors.

According to Accountancy Age, E&Y sought to defend its role at
the Dome, saying that there was a 'fundamental misconception of
our role as external auditor, which primarily is to provide an
opinion of the truth and fairness of its historic accounts.'

Separately, the NMEC confirmed there were no plans for its FD
Neil Spence to leave following the appointment of trouble-shooter
David James.


NORTHERN CHEMICAL:  Liquidation Proceedings
--------------------------------------------
Company Name:   Northern Chemical Dosing Ltd
Company No:   3728641
Com. Business:   Environment/Hygiene Engineers
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors
Liquidators:   Gerald C Smith  IPno: 6335  Michael J Hore  1630
Firm Name:   RSM Robson Rhodes
Address:   Colwyn Chambers  19 York Street
City Postcode:   Manchester  M2 3BA


PEPTIDE THERAPEUTICS: Posts First-Half Pre-Tax Losses
-----------------------------------------------------
The Times reported yesterday that Peptide Therapeutics
(pharmaceuticals) posted first-half pre-tax losses of 5.53
million pounds (4.59 million pound loss). There is no dividend.



S U B S C R I P T I O N   I N F O R M A T I O N

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

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