---

        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

            Monday, September 25, 2000, Vol. 1, No. 98

                           Headlines

C Z E C H   R E P U B L I C

INVESTICNI A POSTOVNI: Value of IPB Still Unclear, Says New Owner
MASOKOMBINAT KLATOVY: Meat Processor in Bankruptcy Proceedings
ZELEZARNY A DRATOVNY: Creditors File Petition for Bankruptcy


G E R M A N Y

OKOBANK: Deal with GLS Falls Through
RICARDO.DE: Losses Widens to 36.7 Million Marks


L A T V I A

LATVIJAS UNIBANKA: SEB will not Change Buyout Offer


R U S S I A

AVTOZAVODSKIY: Begins Bankruptcy Proceedings
MEDIA-MOST: Court Seizes Financially Troubled Group Shares
RAO UES: Federal Tax Police Files Suit


S W I T Z E R L A N D

ANDRE & CIE:  In the Middle of Restructuring


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Proposed Tie-up with KLM Collapses
BRITISH POLYTHENE: Macfarlane Takeover Bid 80 Million Pounds
BURN STEWART: Posts Pre-Tax Loss for the Year of 3.8 Million
CORUS: Postpones Bond Offering
HARLAND & WOLFF:  Cuts 600 Job  

INDEPENDENT ENERGY: Pool Price Ultimatum for Innogy Customers
INTERVEST: The Sofa Company Tries to Recoup Losses
MIDLAND FOUNDRY: Faces Cash Crisis; Sixty Workers Let Go
MILLENIUM DOME: Treasury Holdings Backs Legacy's Dome Bid
RAILBUILD LTD:  Liquidation Proceedings

RAMSEY TRADING:  Liquidation Proceedings
RHYDDING MOTOR:  Liquidation Proceedings
SELECT MEDIA:  Liquidation Proceedings
STOREY BROS:  Liquidation Proceedings
T RODGER:  Liquidation Proceedings

TAMARIS: Reports 14.81 Million Pounds Pre-Tax Loss for the Year
TRAFALGAR FINANCIAL:  Liquidation Proceedings
TRANSLINE SPORTS:  Liquidation Proceedings
WALKERS (HARROGATE):  Liquidation Proceedings
WEB NET:  Liquidation Proceedings

WEST OF ENGLAND:  Liquidation Proceedings
WESTON MEDICAL: Posts First-Half Pre-Tax Loss Of 7.66 Million


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

INVESTICNI A POSTOVNI: Value of IPB Still Unclear, Says New Owner
-----------------------------------------------------------------
CSOB says it impossible to speculate on the value of IPB assets
before an audit currently under way is completed, Czech A.M.
reported yesterday. The new owner of the collapsed bank was
responding to claims made by Nomura's Randall Dillard that IPB
shareholders should get Kc 25-43 bln from the sale of the bank.
If audits show that IPB's value is negative as expected, CSOB
will not have to pay anything to IPB shareholders, including
Nomura's Dutch investment vehicle Saluka, owner of a 46 percent
IPB stake.

While admitting that deals were made in the Cayman Islands with
the Czech National Bank's consent, Dillard says that no proof
exists that Nomura transferred assets there. He also said Nomura
paid for the Plzensky Prazdroj and Radegast breweries in cash,
adding that the Japan-based investment bank would take action in
the next two weeks to counter legal measures taken by CSOB
regarding the Kc 9 bln deal. The latter claims Nomura never paid
for the beer producers, which it later sold to South African
Breweries for Kc 22 bln.


MASOKOMBINAT KLATOVY: Meat Processor in Bankruptcy Proceedings
--------------------------------------------------------------
Access Czech Republic Business Bulletin reported earlier this
week that the Masokombinat Klatovy (MK) meat processor has been
under bankruptcy proceedings since August 8. The bankruptcy is
connected with a dispute between the firm's trustee in bankruptcy
and its owners. ATA Holding (Switzerland) has had a 53 percent
stake in MK since November 1999. MK's turnover totalled CEK 738
million in 1999. The firm saw a loss of CEK 75 million in 1999,
CEK 49 million more compared to 1998.


ZELEZARNY A DRATOVNY: Creditors File Petition for Bankruptcy
------------------------------------------------------------
Moravia Trade Systems (MTS), the largest shareholder of Zelezarny
a dratovny Bohumin (ZDB), is significantly reducing its presence
in the company. MTS plans to sell the most lucrative part of ZDB,
Zeleznicni dvojkoli, the daily Mlada fronta Dnes & Czech News
Agency reported earlier this week. MTS spokeswoman Marie
Pressburgerova said that Zeleznicni dvojkoli is being sold to a
world-renowned investment bank based in Paris. "The buyer does
not want his name to be disclosed for the time being,"
Pressburgerova told MfD. Zeleznicni dvojkoli was a part of ZDB
until this spring when it was bought by Bonatrans, the latter
owned by MTS.

The new investor will buy Zeleznicni dvjkoli by buying 100 pct of
Bonatrans, under the same conditions as Moravia Trade Systems had
bought the company in spring, Pressburgerova told the daily. MTS
will no longer exercise direct control over the rest of ZDB. It
has transferred shareholder rights to its share in ZDB to Hradec
Kralove-based company Protax.

Protax is supposed to secure the process of settlement with
creditors of the indebted ZDB. ZDB last year sustained an audited
loss of Kc2.523bn. Czech News Agency said that two minor
creditors have filed petitions for bankruptcy with the Regional
Commercial Court in Ostrava, and ZDB itself has filed for
settlement. MTS has not ruled out a petition for bankruptcy,
should creditors not accept court settlement.


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

OKOBANK: Deal with GLS Falls Through
------------------------------------
Borsen-Zeitung & World Reporter reported earlier this week that
the planned co-operation between Okobank, the German bank that
aims to protect the environment, and GLS Gemeinschaftsbank, a
German non-profit making bank has collapsed. The deal relied on
GLS being exempt from charges from Okobank's existing debts and
restructuring costs. Okobank was forced to search for a partner
due to considerable defaults on loans and problems appointing new
members to the board of management. GLS seemed an appropriate
choice because its business strategy is similar to that of
Okobank.


RICARDO.DE: Losses Widens to 36.7 Million Marks
-----------------------------------------------
German Internet auction house Ricardo.de AG , which is being
acquired by British rival QXL.com Plc, said in a statement that
losses widened as its loss before goodwill, amortization and non-
recurring expenses increased to 36.7 million marks in 1999/2000
compared to a loss of 2.7 million marks for the previous fiscal
year, Reuters reported yesterday. The company said sales were
40.8 million marks in the business year ending June 30 from 6.3
million marks in the 1998/1999 year.


===========
L A T V I A
===========

LATVIJAS UNIBANKA: SEB will not Change Buyout Offer
---------------------------------------------------
Sweden's Skandinaviska Enskilda Banken (SEB) has reaffirmed it is
not set to change conditions for a Latvijas Unibanka stock buy-
out offer. SEB stressed that all Unibanka's shareholders are
eligible to buy shares for 1.9 lats per share (USD 3.04). "In the
event there remain shares in the market after the term of the
offer expires the market itself will have to find corresponding
price for these shares," BNS & Euromoney said yesterday.

SEB's cash offer for Unibanka's shares is in effect from Sept. 18
through Oct. 27. SEB has the right to extend the deadline by four
weeks. High Bridge Services (HBS), the second biggest shareholder
for Unibanka after SEB, has announced it is ready to pay no less
than 2 lats for Unibanka's shares if it is convinced it would
succeed in acquiring another 15 percent in Unibanka. HBS said
previously the price offered by SEB is too low and that SEB
should pay at least 2.5 lats per share in Unibanka.


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

AVTOZAVODSKIY: Begins Bankruptcy Proceedings
--------------------------------------------
In spite of financial aid given to the Avtozavodskiy automobile
factory, the total debt of the company against the state and
public institutions amounts to RUR 4.3 million. After considering
various debt issues and bankruptcy proceedings against the
factory, members of the regional balance commission recently
decided to allow the factory to fully repay the debt during the
fourth quarter of 2000. If the factory fails to do so, a
bankruptcy petition against the factory will be filed in January
of next year, The Moscow Times reported yesterday.


MEDIA-MOST: Court Seizes Financially Troubled Group Shares
----------------------------------------------------------
The financially troubled Media-MOST group has stalled over
wrangling about which assets should be included in the sale of
the company. However, Gazprom has already approached an
international investment bank to seek foreign buyers for Media-
MOST on the assumption that it will eventually win full control.

Skrin Issuer reported yesterday that the Moscow Arbitration Court
authorized seizing the stock of Media-MOST and all companies
belonging to the media group. Alfred Kokh, general director of
Gazprom-Media, said that the court had taken this measure to
ensure the settlement of Media-MOST's debt to Gazprom.

"Bailiffs are expected to enforce this measure. This means that
any transactions with these shares are prohibited and its holders
cannot vote. We are passing into another stage of relationships
with Media-MOST and will settle this matter in court" Kokh said.


RAO UES: Federal Tax Police Files Suit
--------------------------------------
The department of the federal tax police of Moscow and the Moscow
region filed a criminal suit against RAO UES (Unified Energy
Systems). The head of the main department of the tax police,
Kuzma Shalenkov, announced at a briefing that the tax police
discovered the energy giant has unpaid taxes of 3.28bn rubles
($118m). The official noted that inspections are being held now
in regional subsidiaries of RAO UES, Skrin Issuer reported
earlier this week.


=====================
S W I T Z E R L A N D
=====================

ANDRE & CIE:  In the Middle of Restructuring
----------------------------------------
Swiss commodities group Andre & Cie, which is in the middle of a
major restructuring, said it expected a loss in 2000 due to the
cost of its reorganization, Reuters reported yesterday. The
secretive Lausanne-based, family-owned company, one of the
world's five big grain traders, said in a statement that it would
inform its financial counterparts, mainly bank creditors, of its
first-half financial results.

Andre never revealed its 1999 loss but Swiss media reports put it
at $285 million, based on a leak from internal company documents.
Andre announced a major reorganization in February, caused in
part by 1999 soybean trading losses. It said it would cut global
staff by more than 15 percent and refocus the group on its core
grain business.


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

BRITISH AIRWAYS: Proposed Tie-up with KLM Collapses
---------------------------------------------------
The Guardian reports that talks have collapsed between British
Airways and KLM Dutch Airlines after the two failed to agree on
the structure of a joint airline. This follows the failure of a
proposed tie-up with American Airlines, which became bogged down
in regulatory disputes. In February 1999 British Airways reported
its first loss since it was privatized in 1987, falling 75
million pounds into the red.


BRITISH POLYTHENE: Macfarlane Takeover Bid 80 Million Pounds
------------------------------------------------------------
Macfarlane Group has launched a 92.3 million pounds hostile bid
for British Polythene Industries (BPI), a rival packaging
company. The takeover bid stalled after efforts to secure a
merger agreement failed. Macfarlane, capitalized at about 80
million pounds, would also assume BPI's debts of 79 million
pounds, The Times reported yesterday. BPI, Europe's largest
producer of polythene film, urged shareholders to take no action.

John Ward, Macfarlane's chairman, said: "The combination of
Macfarlane and BPI represents an opportunity to create a business
of significant scale and capability in European terms. We believe
strongly that this will be of benefit to shareholders and
customers." Tough trading conditions have troubled the packaging
sector for some years.


BURN STEWART: Posts Pre-Tax Loss for the Year of 3.8 Million
------------------------------------------------------------
The Times said yesterday that distiller Burn Stewart reported
pre-tax losses for the year of 3.8 million pounds. There is no
dividend.


CORUS: Postpones Bond Offering
------------------------------
Reuters reported yesterday that Anglo-Dutch steel giant Corus
Group Plc said it had postponed plans for a euro bond issue due
to the recent flow of bad news from the industry. "Recent news on
the trading scene and exchange rate fluctuations mean it is not
prudent for us to proceed with a bond issue at this time," said
Corus spokesman Mike Hitchcock. "We will reconsider an issue when
conditions in the industry are more favorable."

The steelmaker had been expected to launch a 500 million euro
five-year bond either late this week or early next following the
completion of a European investor roadshow. Deutsche Bank and
Schroder Salomon Smith Barney were appointed lead managers.
Shares in the company, formed by the merger of British Steel and
Dutch rival Hoogovens last year, were hit this week after
comments from France's Usinor hit the stock just days after its
relegation from the FTSE 100 index.


HARLAND & WOLFF:  Cuts 600 Job  
-----------------------------
Harland & Wolff, the troubled Belfast shipyard, confirmed plans
to cut its workforce by half, a loss of 600 jobs. Last week the
yard was successful in a 23 million-pound arbitration claim
against a U.S. customer but said that job losses were inevitable
despite the outcome, The Times reported yesterday.


INDEPENDENT ENERGY: Pool Price Ultimatum for Innogy Customers
-------------------------------------------------------------
Industrial customers of Independent Energy, the electricity
company which went into receivership last week, face
disconnection unless they sign up to new, more expensive
contracts.

The move follows the pounds 10 million purchase of Independent
Energy's 240,000-strong customer base by Innogy, the domestic
business of National Power. Innogy is offering Independent's 235
industrial and commercial customers temporary contracts based on
Electricity Pool prices. Pool prices have roughly quadrupled from
average prices of pounds 20 to pounds 25 per megawatt-hour last
month to close of pounds 80 on the back of unplanned outages at
several major power stations, The Daily Telegraph reported
yesterday.

Customers refusing Innogy's new terms have to find an alternative
supplier, or face being disconnected. "We are trying to do the
best by industrial and commercial customers we've inherited from
Independent but recognize that we could not stand by the original
commercial terms offered by Independent," an Innogy spokesman
said. "We are offering this at cost price, so we are not making
any mark-up on the pool prices." Innogy has agreed to honor the
original contract terms for the bulk of Independent's customer
base of small and medium businesses and domestic clients, the
Daily said.


INTERVEST: The Sofa Company Tries to Recoup Losses
--------------------------------------------------
Sunday Times reported last week that a cashback scheme in 1996
involving The Sofa Company was backed by Intervest, to which The
Sofa Company had passed pounds 2.5 million. Claimants were not
covered by the policyholders' protection act and Intervest in the
meantime was compulsorily wound up. The Sofa Company, in seeking
relief from Intervest itself, has come to an arrangement with
liquidators to give credit notes to claimants to cover some of
the cashback due. The report says The Sofa Company may find its
own legal liability tested in the courts.


MIDLAND FOUNDRY: Faces Cash Crisis; Sixty Workers Let Go
--------------------------------------------------------
Half the workforce at a Midland foundry has been axed after the
company was plunged into a cash crisis following the loss of a
major customer to the Far East. Sixty workers were made redundant
last week at Crane Foundry (Wolverhampton) after the foundry
called in administrative receivers. Now efforts are being made to
try to find a buyer for the stricken business in the town's
Horseley Fields district in a bid to save the remaining jobs, the
Evening Mail reported earlier this week.

According to the Evening Mail, Birmingham-based joint receiver
John Kelly of insolvency experts Kroll Buchler Phillips said the
core business was good but it had been badly hit by the defection
of one large customer with the lure of cheaper goods from China.
He said Crane Foundry had spent more than pounds 1 million on
upgrading its works on environmental improvements but had been
ahead of its time as it had not needed to act immediately to
comply with new laws. The company supplies the tool, engineering
and car industries.


MILLENIUM DOME: Treasury Holdings Backs Legacy's Dome Bid
---------------------------------------------------------
A property company in the Irish Republic is the main financial
backer behind an attempt by Robert Bourne, the millionaire Labour
Party contributor, to buy the Millennium Dome, The Times reported
yesterday.

Mr Bourne's Legacy consortium, which wants to turn the Dome into
a high-tech science park, has lined up funding from one of
Ireland's largest developers, Treasury Holdings, to finance the
purchase of the Dome, according to Property Week magazine.
Treasury, headed by John Ronan and Richard Barrett, is behind
many of Ireland's most ambitious development proposals.

Negotiations between the Government and Legacy are thought to
have stalled as advisers look into the Irish company, which will
provide most of the equity for Legacy's 105 million pounds bid.
Legacy originally offered 155 million pounds for the Dome, but it
has scaled down its bid to match the price Nomura had agreed to
pay.


RAILBUILD LTD:  Liquidation Proceedings
---------------------------------------
Company Name:   Railbuild Ltd
Company No:   3086926
Com. Business:   Lorry Hire
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   David Bottomley  IPno: 5985    
Firm Name:   Wilson Phillips
Address:   49a Preston New Road
City Postcode:   Blackburn  BB2 6AE


RAMSEY TRADING:  Liquidation Proceedings
----------------------------------------
Company Name:   Ramsey Trading Ltd
Company No:   3461116
Com. Business:   Dressmakers
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Andreas G Kakouris  IPno: 4691    
Firm Name:   Kakouris & Michaelides
Address:   43 Blackstock Road
City Postcode:   London  N4 2JF


RHYDDING MOTOR:  Liquidation Proceedings
----------------------------------------
Company Name:   Rhydding Motor Co Ltd
Company No:   3383657
Com. Business:   Motor Dealers
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   P Charlton  IPno: 5838    
Firm Name:   Mazars Neville Russell
Address:   Mazars House  Geldered Road  Gildersome
City Postcode:   Leeds  LS27 7JN


SELECT MEDIA:  Liquidation Proceedings
--------------------------------------
Company Name:   Select Media Ltd
Company No:   3537978
Com. Business:   Advertising Agent
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Nigel G Mallett  IPno: 2162    
Name:   NMGW
Address:   Crown House  37-41 Prince Street
City Postcode:   Bristol  BS1 4PS


STOREY BROS:  Liquidation Proceedings
-------------------------------------
Company Name:   Storey Bros (Haulage) Ltd
Company No:   536571
Com. Business:   Haulage Contractors
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Allan Cooper  IPno: 5546  Brian S Creber  1062
Firm Name:   Poppleton & Appleby
Address:   93 Queen Street
City Postcode:   Sheffield  S1 1WF


T RODGER:  Liquidation Proceedings
----------------------------------
Company Name:   T Rodger Enterprise Ltd
Company No:   SC54751
Com. Business:   Timber/General Merchants
Appointed on:   25/08/00
Type:   Members
Appointed by:   Members
Liquidators:   Matthew P Henderson  IPno: 6884    
Firm Name:   Grant Thornton
Address:   1/4 Atholl Crescent
City Postcode:   Edinburgh  EH3 8LQ


TAMARIS: Reports 14.81 Million Pounds Pre-Tax Loss for the Year
---------------------------------------------------------------
The Times reported yesterday that hospital management company
Tamaris said pre-tax losses for the year were 14.81 million
pounds. There is no dividend.


TRAFALGAR FINANCIAL:  Liquidation Proceedings
---------------------------------------------
Company Name:   Trafalgar Financial Consultants Ltd
Previous Name:   Dataincome Ltd
Company No:   2951268
Com. Business:   Financial Consultants
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Peter J Windatt  IPno: 8611    
Firm Name:   Smith Dove
Address:   Glenroyd House  96-98 St James Road
City Postcode:   Northampton  NN5 5LG


TRANSLINE SPORTS:  Liquidation Proceedings
------------------------------------------
Company Name:   Transline Sports Ltd
Previous Name:   Romaprime Ltd
Company No:   3719319
Com. Business:   Manufacture of Golf Clubs
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   David Bottomley  IPno: 5985    
Firm Name:   Wilson Phillips
Address:   49a Preston New Road
City Postcode:   Blackburn  BB2 6AE


WALKERS (HARROGATE):  Liquidation Proceedings
---------------------------------------------
Company Name:   Walkers (Harrogate) Ltd
Company No:   3602665
Com. Business:   Book Shop
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors
Liquidators:   Peter Terry  IPno: 5804  Julian R Whale  7252
Firm Name:   KPMG
Address:   1 The Embankment  Neville Street
City Postcode:   Leeds  LS1 4DW


WEB NET:  Liquidation Proceedings
---------------------------------
Company Name:   Web Net Direct Ltd
Previous Name:   Net Home Sales Ltd
Company No:   3909046
Com. Business:   Provision/Design Web Sites
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Jonathan M Timmis  IPno: 8933    
Firm Name:   J M Marriott & Co
Address:   Cameron House  White Cross  South Road
City Postcode:   Lancaster  LA1 4XQ


WEST OF ENGLAND:  Liquidation Proceedings
-----------------------------------------
Company Name:   West of England Textiles Ltd
Company No:   3331186
Com. Business:   Textile Manufacturer
Appointed on:   25/08/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Donald Bailey  IPno: 6739  R W Traynor  6730
Firm Name:   Begbies Traynor
Address:   Elliot House  151 Deansgate
Postcode:   Manchester  M3 3BP


WESTON MEDICAL: Posts First-Half Pre-Tax Loss Of 7.66 Million
-------------------------------------------------------------
Pharmaceuticals company Weston Medical posted first-half pre-tax
losses of 7.66 million pounds (1.9 million pounds loss). There is
no dividend, The Times said yesterday.



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,
Mercy Villacastin and Cristina Pernites Editors.

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

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 Europe subscription rate is $575 per half-year, 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 * * *