/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/001005.mbx 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 Thursday, October 5, 2000, Vol. 1, No. 106 Headlines B E L G I U M LERNOUT & HAUSPIE: Under Investigation C Z E C H R E P U B L I C KOMERCNI BANKA: Up For Sale, Suffers Multi-Billion Crown Losses F R A N C E BOURGOIN: Nine Candidates Submit Firm Offers G E R M A N Y LION BIOSCIENCE: Posts First Quarter Net Loss of E14.1 Million I R E L A N D INDIGO: Losses Widen to Euro 12.33 Million I T A L Y INFOSTRADA: Allies Row over How to Buy Telecom Group R O M A N I A BANCA INTERNATIONALA: Goes to Bankruptcy Procedures FNI: MPs Urge Government to Solve Investors' Claims R U S S I A KUZBASS: Up for Liquidation, 34,000 Jobs Dismiss SIBUR-NEFTEKHIM: Court will Process Claims of `Lotus Trade' MEDIA-MOST: Prosecutors to Bring Gusinsky Up for Interrogation S L O V A K I A (S L O V A K R E P U B L I C) VSZ: USX Corporation to Buy the Slovak Steel Making S P A I N BOLIDEN APIRSA: Files for Bankruptcy Proceedings S W E D E N ARBETET NEWSPAPER: Leading Swede Labor Newspaper Closes DRESSMART: New Wave Group to Takeover WASTE MANAGEMENT: Selling Operations in Sweden U N I T E D K I N G D O M BETINTERNET.COM: Posts Full-Year Pre-Tax Loss of 1.03 Million DAEWOO UK: Staff Remains Unpaid HUNTLYS BUILDERS MERCHANTS LTD: Liquidation Proceedings GRANGER TELECOMMUNICATIONS: Gas Creditors Seek State Help KINGSTON GENERAL CONTRACTORS LTD: Liquidation Proceedings LEISUREWIRE LTD: Liquidation Proceedings LEMA TRADING LTD: Liquidation Proceedings LEWIS STERLING LTD: Liquidation Proceedings LOCALITY CARE HOME LTD: Liquidation Proceedings MG ROVER: Towers in Talks to Sell Struggling British Carmaker MERIDIAN (WEMBLEY) LTD: Liquidation Proceedings MILLENIUM DOME: Falconer Comes Clean on Dome Warning NETWORK TECHNOLOGY: Posts Full-Year Pre-Tax Loss of 1.53 Million RJB MINING: Rennert Set to Bid for Coal Miner SELBY CONSTRUCTION LTD: Liquidation Proceedings SYSTEMS UNION: Reports 96.52m Pounds in Losses TACKLINE SERVICES LTD: Liquidation Proceedings VINCA SYSTEMS LTD: Liquidation Proceedings WALKER HAULAGE LTD: Liquidation Proceedings WEST HAM STADIUM LTD: Liquidation Proceedings WIMBLEDON STADIUM LTD: Liquidation Proceedings ============= B E L G I U M ============= LERNOUT & HAUSPIE: Under Investigation --------------------------------------- A securities class action is pending against Lernout & Hauspie Speech Products N.V., said Berman DeValerio & Pease LLP, a law firm representing investors for nearly 20 years. The class action came as the European stock market Easdaq announced an investigation of Lernout & Hauspie's finances. The U.S. Securities and Exchange Commission (SEC) is also investigating the company. The lawsuit, which was filed in the United States District Court for the District of Massachusetts, seeks damages on behalf of anyone who purchased Lernout & Hauspie common stock between December 28, 1999 and August 7, 2000. The complaint alleges that Lernout & Hauspie illegally misled investors about its business and financial results by overstating and inventing sales in Korea. After the truth about the exaggerated and fictitious Korean sales was revealed, the complaint says, the price of the company's shares fell as low as $26-3/4 per share. On September 21, Lernout & Hauspie announced in a news release that the U.S. Securities and Exchange Commission (SEC) had opened an investigation into its prior financial statements. The Easdaq probe was announced September 26. =========================== C Z E C H R E P U B L I C ============================ KOMERCNI BANKA: Up For Sale, Suffers Multi-Billion Crown Losses --------------------------------------------------------------- Reuters reported yesterday that at least five European banks plan to participate in a tender for a 60 percent stake in the third largest Czech bank, Komercni Banka, Deputy Finance Minister Jan Mladek said on Tuesday. "There are at least five (potential) buyers," Mladek told reporters, adding that he met representatives of the potential bidders during an IMF/World Bank meeting in Prague last week. Mladek refused to specify the name or country of origin of the potential buyers. Privatization adviser Goldman Sachs has been sending out information memoranda on the sale of the bank, which has suffered multi-billion crown losses in the past two years and had to be repeatedly propped up by the government. The Czech cabinet expects to choose Komercni's new strategic owner in the first quarter of the next year. =========== F R A N C E =========== BOURGOIN: Nine Candidates Submit Firm Offers -------------------------------------------- Les Echos & World Reporter reported earlier this week that Bourgoin, with debts amounting to FFr1.5bn, could be the object of many offers from rival bidders. In all, nine candidates have submitted firm offers for a partial takeover of Bourgoin, France's third largest poultry company, which filed for bankruptcy on August 22. The offers will not be to the liking of Regis Valliot, charged with the task of finding a buyer, as not one of them guarantees employment for all Bourgoin's 4,700 workers. One offer stands out from the rest, however; it is that of Verneuil France, which already owns Duc, a subsidiary of Bourgoin. A decision will be announced on October 6 provided that the administrators do not give Bourgoin's management more time to improve their offer. On paper their offer is the best both financially and socially, with a price of FFr160m and a promise to keep on 2,409 workers. The receivers will have to act quickly, as Bourgoin continues to lose money. ============= G E R M A N Y ============= LION BIOSCIENCE: Posts First Quarter Net Loss of E14.1 Million -------------------------------------------------------------- European Investor reported earlier this week that Lion Bioscience, the bio-informatics company, has said that turnover and operating loss has increased in the first quarter of fiscal year 2000 (April to June 2000). The company reports that it finished the first quarter of fiscal year 2000 with a net loss of 14.1 million euros compared with a net loss for last year's first quarter of 3.2 million euros. The loss for the period is 1.84 euros per share versus last year's earnings of 60 cents per share for the like period. Dr Alexander Asam, spokesman for Lion Bioscience told EIC News that the first quarter included a one-time expense for its employees. The operating loss of 14.1 million euros includes non- cash compensation expenses of 8.7 million euros. The compensation resulted from conversion of preferred shares to ordinary bearer shares. In exclusion of this one-time expense, Lion's operating loss for the first quarter comes to 5.3 million euros. ============= I R E L A N D ============= INDIGO: Losses Widens to Euro 12.33 Million ------------------------------------------- A new breakdown of Eircom's accounts shows that annual losses in its core retail telephony division have rocketed by 410pc, while losses tripled at Internet service provider Indigo, Irish Independent reported yesterday. The separated accounts for the year to March 31, 2000, were released on the company's Web site in line with rules laid down by telecoms regulator Etain Doyle. The audited accounts, which use slightly different accounting rules to those in the annual financial results, are an attempt to separate out each Eircom business unit to show its revenues and costs minus any cross subsidies from other divisions. According to Irish Independent the losses in the directory inquiries section were halved to euro 18.4m (14.5m pounds), while costs were down 30pc due to staff reductions and grated productivity. However, Internet service provider Indigo continues to rack up large losses. Accounts show operating losses were up 151pc last year. The operating loss, or turnover minus total operating costs, for Indigo jumped to euro 12.33m (9.7m pounds). Indigo's revenue base suffered due to the scrapping of subscription fees, while costs jumped on higher marketing expenses. ========= I T A L Y ========= INFOSTRADA: Allies Row over How to Buy Telecom Group ---------------------------------------------------- Relations between France Telecom and Italian utility Enel were facing a severe test amid disagreement over how much their Wind joint venture should pay for Infostrada, the telecoms group being sold by Vodafone of the UK, Financial Times reported yesterday. Infostrada, as of August 15, had 6.35m customers, with 3.3m voice customers, 2.5m residential customers and 3.05m Internet users. Infostrada's sales in the first six months of this year increased 38 per cent to E450m. It has E1bn of debt. Sources close to France Telecom said the French company was unhappy with the terms of the joint purchase of Infostrada because Enel was insisting on a cash transaction. France Telecom is apparently reluctant to pay cash not because of the impact on its gearing but because it regards Infostrada as essentially "an Internet business". However, Enel would find it hard under any circumstances to acquire Infostrada in a transaction involving shares. This is because the Italian government has ruled that any company acquiring a third-generation mobile phone licence in Italy cannot have a cross-shareholding with another company acquiring a licence. Both Vodafone and Enel are separately bidding for UMTS licences in Italy this month in separate consortia. France Telecom is also understood to be reluctant to close a deal on Infostrada because it believes that the price being sought is too high, according to Financial Times. ============= R O M A N I A ============= BANCA INTERNATIONALA: Goes to Bankruptcy Procedures ---------------------------------------------------- Reuters reported this week that Romania's insurance deposit fund Fondul de Garantare a Depozitelor said it would start next week to compensate depositors of Banca Internationala a Religiilor (BIR), which has been undergoing bankruptcy procedures since July. A fund statement said units across Romania of private bank Banca Romana pentru Dezvoltare BRD-Groupe Societe Generale would start paying BIR individual depositors from October 9. Banking sources estimated household deposits at BIR at around ROL 600 billion. Under the law, the fund raising money from banks operating in Romania compensates depositors up to a limit of ROL 65.169 million (USD 2,700) per individual once a bank is declared bankrupt by a court. The threshold is updated twice a year, in line with inflation. The BIR, created in 1994, was placed under the central bank's special surveillance earlier this year after facing large withdrawals by depositors. A court declared it bankrupt in July. A BIR appeal against the court decision is due on October 18. FNI: MPs Urge Government to Solve Investors' Claims --------------------------------------------------- Reuters reported last week that Romania's parliament has asked the government to find solutions to compensate investors in the large FNI unit trust, which collapsed in May triggering popular outrage. MPs, who analyzed a report on the FNI collapse by a parliamentary commission, urged the government to extend inquiries into the FNI operation for the duration of its activity. They also asked the government to present amendments to existing financial market rules within a month to prevent a repeat of the FNI case. Reuters noted that around 220,000 people, who put the equivalent of USD 220 million into the FNI, are seeking redemption of lost investments plus an extra USD 110 million in promised returns. Latest available data showed FNI had placed a large part of its funds to less-liquid, unquoted shares in various domestic companies. The fund came under pressure in April amid mass withdrawals following speculations that the net assets computation method would be changed. The government declined responsibility for the investors' losses saying they had put the money into a private fund at their own risk. The report by the parliamentary commission blamed several state institutions, including the Finance Ministry and the central bank, for inaction to reveal FNI trouble in due course. =========== R U S S I A =========== KUZBASS: Up for Liquidation, 34,000 Jobs Dismiss ------------------------------------------------ Moscow Times reported yesterday that the total number of employees at the enterprises of Kuzbass reduced by 103,000. Thirty-four thousand employees have been dismissed because of the liquidation of the enterprises and 26,800 people are unemployed. SIBUR-NEFTEKHIM: Court will Process Claims of `Lotus Trade' ----------------------------------------------------------- Moscow Times noted yesterday that on October 9 the arbitration court will process the claim of "Lotus Trade" on declaring the circumstances leading to the illegal establishment of Sibur- Neftekhim Nizhniy Novgorod petrochemical company. Lotus Trade holds 8.46 percent of shares in Sibur-Neftekhim. The matter concerns the debt of Neftekhim (Dzerzhinsk, Nizhniy Novgorod region); the company's main funds have been passed over to Sibur-Neftekhim against Nizhnovenergo (the main regional energy supplier), overdue since 1998. The total amount of the debt is RUR 90 million. Sibur-Neftekhim undertook repayment of the debt. Seven suits have been filed, corresponding to the number of agreements on passing over the debt liabilities. Along with Sibur-Neftekhim, Neftekhim acts respondent at the suit. Nizhnovenergo has been attracted as the third party. MEDIA-MOST: Prosecutors to Bring Gusinsky Up for Interrogation -------------------------------------------------------------- Russian prosecutors said they would do their best to get in touch with media tycoon Vladimir Gusinsky and bring him up for interrogation. The prosecutors still have questions for Gusinsky, who chairs the board of directors of the Media-MOST holding company, and they will take all legal measures to bring him up for interrogation, the public relations and information centre of the Prosecutor-General's Office told Itar-Tass. Gusinsky was summoned for interrogation to the investigation department of the Prosecutor-General's Office, but he never showed up, a centre official said. Instead, the prosecutors received a letter from the head of the Media-MOST administration saying Gusinsky was abroad on a long-term business trip. ITAR/TASS News Agency noted last week that the board chairman is "restoring contacts with companies and organizations which were lost when he was forced to keep away from work, " and will not return to Russia until October 31, the letter claimed. According to it, the Media-MOST administration currently has no contacts with Gusinsky. This kind of response is in line with the Russian legislation, the official said. Gusinsky was arrested on swindling and grand larceny charges on June 13 this year. He was released several days later, but prosecutors keep summoning him for interrogation as a witness in the case. Another criminal proceedings involving Gusinsky were instituted on Thursday as a result of an inspection conducted at the request of Gazprom-Media holding company, which declared that the mortgaged assets of the Media-MOST company had been transferred offshore. According to Deputy Prosecutor General Vasily Kolmogorov, the inspection confirmed the transfer of the assets. Media-MOST lawyer Pavel Astakhov said that all the mortgaged shares remained in Russia. Otherwise, court officials would have been unable to seize them, he said. Other high-ranking officials of Media-MOST have not been summoned to the prosecutor's office so far, the company press service told Itar-Tass. Nevertheless, the instituted proceedings severely affected Media-MOST's development, Press Secretary Dmitry Ostalsky said. Media Most's outlets, such as NTV television, Ekho Moskvy radio and Segodnya newspaper, have been critical of President Vladimir Putin. ================================================ S L O V A K I A (S L O V A K R E P U B L I C) ================================================ VSZ: USX Corporation to Buy the Slovak Steel Making ------------------------------------------------------- The U. S. Steel Group of USX Corporation will buy the Slovak steelmaking operations and related assets of VSZ a.s. The transaction must now be approved by VSZ's shareholders at a general stockholders meeting in Kosice, expected to be held in early October. With shareholder approval, the parties would move to a closing scheduled for the end of October. U. S. Steel Group would then take ownership of the 4-million-ton eastern Slovakian steel plant. The new U. S. Steel subsidiary would be renamed U. S. Steel Kosice s.r.o. and would represent about 25 percent of U. S. Steel Group's expanded steel manufacturing capacity. The financial package includes an initial cash payment of $60 million by U. S. Steel to VSZ a.s. U. S. Steel Kosice also will issue $325 million of debt to VSZ's lenders and reimburse VSZ for paying $15 million in past taxes. During the period 2002-2003, U. S. Steel Kosice will make payments to VSZ a.s. of not less than $25 million and up to $75 million, dependent on the performance of the new company. ========= S P A I N ========= BOLIDEN APIRSA: Files for Bankruptcy Proceedings ------------------------------------------------ Reuters reported earlier this week that the Swedish-Canadian mining group Boliden Ltd said a subsidiary that was at the center of Spain's worst-ever ecological disaster was filing for bankruptcy proceedings. The Spanish unit, Boliden Apirsa, which operates the Los Frailes zinc mine in southern Spain, said it had filed for a "suspension of payments" -- the equivalent of United States Chapter 11 bankruptcy protection proceedings. "In order to preserve assets, to pay creditors in an orderly manner, and to ensure that operations at Los Frailes continue until the planned completion of Pit Two in October 2001, Apirsa has filed a court application for commencement of 'suspension de pagos' (suspension of payments) proceedings," the company said. Boliden Apirsa said it was suspending work at one of the mining pits near the site of the disaster. The mine has been suffering continuous losses since reopening in the second quarter of 1999, Boliden said in a statement. =========== S W E D E N =========== ARBETET NEWSPAPER: Leading Swede Labor Newspaper Closes ------------------------------------------------------- Labor-oriented Arbetet newspaper published its last edition September 30. Based in Malmoe, Sweden's third-largest city, Arbetet had ties to the Social Democratic party. Circulation declined during the 1980s. Arbetet subsequently declared bankruptcy last month, due partly to changing readers' habits and increased competition from online outlets and free newspapers. About 300 employees in Malmoe and Goteborg have lost their jobs. Arbetet was founded August 6, 1887. DRESSMART: New Wave Group to Takeover -------------------------------------- New Wave Group has offered options to shareholders representing more than 90 percent of the capital and votes of Dressmart. These options entitle the shareholders to demand that the New Wave Group acquire their shares in Dressmart (i.e. a put option), under certain conditions. The acquisition by the New Wave Group, to which the options offered will hopefully lead, is in line with New Wave's effort to market to businesses through Cyberwave, a wholly owned subsidiary company. The adaptations that are needed for Cyberwave's business concept will be initiated immediately. Some of Dressmart's employees will be offered continued employment through the recruiting process now going on at Cyberwave. Marketing and sales to individual consumers will continue over the next few months, with an evaluation of this activity to be effected during that period. WASTE MANAGEMENT: Selling Operations in Sweden ---------------------------------------------- Waste Management Inc. will sell its operations in Sweden to Miljoservice Sverige AB, a subsidiary of SITA, and Sydkraft AB, for approximately $191 million. The sale stems from Waste Management's strategy to re-focus the Company on its North American waste operations. The Company noted that this sale brings the total announced sales agreements to approximately $2.4 billion. Waste Management subsidiaries are in discussions with other parties regarding the divestiture of certain other international businesses, as well as certain non-core and non- integrated solid waste assets in North America. =========================== U N I T E D K I N G D O M ========================= BETINTERNET.COM: Posts Full-Year Pre-Tax Loss of 1.03 Million ------------------------------------------------------------- The Times reported yesterday that Online betting company betInternet.com reported full-year pre-tax losses of 1.03 million pounds. There is no dividend. DAEWOO UK: Staff Remains Unpaid ------------------------------- Workers at the main British factory of South Korean car group Daewoo were told that it still did not have enough money to pay their salaries this month, The Guardian reported yesterday. The 750 staff at the company's technical centre in Worthing, West Sussex, received letters last week saying that the firm had no funds to pay October's wages. The Seoul-based conglomerate is billions of pounds in debt and in the hands of banks. Staff was told that the South Korean government was speaking to creditors this week but no news is expected before tomorrow. The manufacturing science and finance union, which represents staff in Worthing, said the delay was a "disgrace". HUNTLYS BUILDERS MERCHANTS LTD: Liquidation Proceedings ------------------------------------------------------- Company Name: Huntlys Builders Merchants Ltd Company No: SC Com. Business: Appointed on: 05/09/00 Type: Creditors Appointed by: Creditors Liquidators: Gordon M MacLure IPno: 8201 Firm Name: HLB Kidsons Address: 11 Albyn Place City Postcode: Aberdeen AB10 1YE GRANGER TELECOMMUNICATIONS: Gas Creditors Seek State Help --------------------------------------------------------- Granger Telecommunications Systems, a network supplier to the gas industry, won a contract to develop a gas infrastructure project in Bangladesh as part of a 100m-pound British government package in 1998. But the company went into liquidation in August, leaving 3m pounds owing to creditors in Britain and a further 500,000 pounds owing in Bangladesh when the contract ran into delays. Some 60 people were made redundant as a result. The insolvency specialist Kroll Buchler Phillips will this week appeal to Clare Short's Department for International Development to help release 2.7m pounds to creditors that lost money through a failed government-backed gas project in Bangladesh, The Sunday Times reported earlier this week. KINGSTON GENERAL CONTRACTORS LTD: Liquidation Proceedings --------------------------------------------------------- Company Name: Kingston General Contractors Ltd Previous Name: Otherstyle Ltd Company No: 3628724 Com. Business: Building Contractors Appointed on: 05/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Paul Appleton IPno: 8883 Firm Name: David Rubin & Co Address: Pearl Assurance House 319 Ballards Lane City Postcode: London N12 8LY LEISUREWIRE LTD: Liquidation Proceedings ----------------------------------------- Company Name: Leisurewire Ltd Company No: 1728926 Com. Business: Dormant Appointed on: 05/09/00 Type: Members Appointed by: Members Liquidators: Richaes J Hassall IPno: 5751 Firm Name: KPMG Address: PO Box 730 20 Farringdon Street City Postcode: London EC4A 4PP LEMA TRADING LTD: Liquidation Proceedings ---------------------------------------- Company Name: Lema Trading Ltd Company No: 2980851 Com. Business: Appointed on: 05/09/00 Type: Creditors Appointed by: Creditors Liquidators: Martin Pocock IPno: 8555 Firm Name: Martin Davis Address: 295 Whitechapel Road City Postcode: London E1 1BY LEWIS STERLING LTD: Liquidation Proceedings ------------------------------------------ Company Name: Lewis Sterling Ltd Company No: 3424665 Com. Business: Wholesale Clothing/Footwear Appointed on: 05/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Paul M Davis IPno: 7805 Nicholas R Hood 8350 Firm Name: Begbies Traynor Address: 6 Raymond Buildings Grays Inn City Postcode: London WC1R 5NR LOCALITY CARE HOME LTD: Liquidation Proceedings ------------------------------------------------ Company Name: Locality Care Home Ltd Previous Name: Fleetwood Services Ltd Company No: 3022866 Com. Business: Operate Residential Care Home Appointed on: 05/09/00 Type: Creditors Appointed by: Creditors Liquidators: A A Josephs IPno: 4179 Firm Name: RMT Address: 3 Portland Terrace City Postcode: Newcastle-u-Tyne NE2 1QQ MG ROVER: Towers in Talks to Sell Struggling British Carmaker ------------------------------------------------------------- Just five months after buying MG Rover from BMW, John Towers, chairman of the struggling British carmaker, is in talks to sell the company in an attempt to secure the future of the Longbridge plant. If he pulls it off and manages to achieve the 50m pounds that MG Rover could be worth, Towers and three co-directors of Techtronic (2000), the parent company, could make 8m pounds each. Towers has held a series of meetings with Proton, the Malaysian carmaker, and these could lead to it taking an initial minority stake in the Longbridge car maker in return for providing a 450m pounds platform to produce new mid-range products to replace the Rover 25 and 45, The Sunday Times noted earlier this week. Towers has promised Longbridge's 7,000 workers that 35 percent of the shares will be handed over to them, leaving Techtronic's owners with the remaining 65 percent. Towers said the shares would be distributed within six months. As The Sunday Times revealed two weeks ago, Towers is still in talks with BMW over the completion accounts. When Phoenix, the Towers-led consortium that paid just 10 pounds for Longbridge, took control in May, BMW did not allow time for the consortium to carry out due diligence. Now the books have been studied, discrepancies in BMW's valuation have been found. MERIDIAN (WEMBLEY) LTD: Liquidation Proceedings ----------------------------------------------- Company Name: Meridian (Wembley) Ltd Company No: 1568058 Com. Business: Dormant Appointed on: 05/09/00 Type: Members Appointed by: Members Liquidators: Richaes J Hassall IPno: 5751 Firm Name: KPMG Address: PO Box 730 20 Farringdon Street City Postcode: London EC4A 4PP MILLENIUM DOME: Falconer Comes Clean on Dome Warning ---------------------------------------------------- The Independent reported earlier this week that more details of the financial warnings given to ministers about the Dome fiasco will be disclosed when the widely leaked PricewaterhouseCooper report is published by Lord Falconer. Sources say the New Millennium Experience Company, including Lord Falconer, who holds the Government share, was told by PwC that there was a danger they might be guilty of "wrongful trading while insolvent". The formal warning was made made to the directors of the Dome by Dipankar Ghosh of PwC on 22 August. PwC has refused to publish the report, saying it would breach commercial confidentiality, but Lord Falconer's Cabinet Office officials have confirmed the document will be placed in the Lords library to make it public. The Independent said that the Government is still hoping to seal a deal within a month with Legacy, which plans to turn the Dome into a hi-tech business park. NETWORK TECHNOLOGY: Posts Full-Year Pre-Tax Loss of 1.53 Million ---------------------------------------------------------------- The Times noted yesterday that computer hardware company Network Technology announced a full-year pre-tax loss of 1.53 million pounds. There is no dividend. RJB MINING: Rennert Set to Bid for Coal Miner --------------------------------------------- Britain's largest coal mining concern, RJB Mining Plc, reported a first-half loss reflecting the cost of keeping two loss-making collieries in operation and a larger than usual number of coal- face changes. A poor performance had been expected but the fall into the red will do little to strengthen RJB's hand in negotiations with U.S. conglomerate Renco, which has made an approach to buy it. Renco, the U.S. conglomerate owned by Ira Rennert, the billionaire, is close to tabling a takeover bid for RJB Mining that could value the coal miner at up to ?130 million. Renco is in the final throes of its four-month due diligence program, much of which has centered on RJB's potential environment-related liabilities. It is believed that Renco will offer at least 80p a share. The European Commission is yet to approve a 75 million-pound state aid package for RJB, intended to cover the cost of keeping open two of its worst performing collieries and saving about 3,000 jobs. However, the EU is considered unlikely to block the request for aid. It is not clear whether Renco would be obliged to retain the jobs at RJB regardless of whether the subsidy was paid. RJB made a 10.2 million-pound loss for the first half after being hit by several production problems. It expects to recover that loss in this half. SELBY CONSTRUCTION LTD: Liquidation Proceedings ---------------------------------------------- Company Name: Selby Construction Ltd Company No: 3109206 Com. Business: Services to Construction Industry Appointed on: 05/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Bhagu Mistry IPno: 5762 Firm Name: B Mistry & Co Address: Pride House Rectory Lane City Postcode: Edgware HA8 7LG SYSTEMS UNION: Reports 96.52m Pounds in Losses ---------------------------------------------- Net Imperative reported yesterday that Systems Union, the AIM- listed e-solutions and business software provider, previously known as freecom.net, has reported hefty losses of 96.52m pounds on a turnover of 15.69m pounds for the six months to 30 June 2000. Following the 48.5m pounds acquisition of Pegasus in January, the accounting software company has undergone a "staff reorganization, resulting in a reduction of the ongoing cost base of the business". Oneview.net, acquired in May, has cut its cost base in order to control cash burn "by significantly reducing staff numbers". Also, in Systems Union acquired in May for 31.92m pounds, and now the group's core business "steps were taken to reduce costs significantly by scaling down the activities of non-profitable offices and reducing corporate overheads". With these measures put into place, the company's operating expenses for the half- year came to 21.95m pounds. There is no dividend. TACKLINE SERVICES LTD: Liquidation Proceedings ---------------------------------------------- Company Name: Tackline Services Ltd Company No: 927269 Com. Business: Support Services to Solicitors Appointed on: 05/09/00 Type: Members Appointed by: Members Liquidators: Peter G Mills IPno: 7948 Firm Name: Smith & Williamson Address: 1 Riding House Street City Postcode: London W1A 3AS VINCA SYSTEMS LTD: Liquidation Proceedings ----------------------------------------- Company Name: Vinca Systems Ltd Company No: 2266278 Com. Business: Dormant Appointed on: 05/09/00 Type: Members Appointed by: Members Liquidators: Richaes J Hassall IPno: 5751 Firm Name: KPMG Address: PO Box 730 20 Farringdon Street City Postcode: London EC4A 4PP WALKER HAULAGE LTD: Liquidation Proceedings ------------------------------------------- Company Name: Walker Haulage Ltd Company No: 3427252 Com. Business: Haulage Contractor Appointed on: 05/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Alan G Haden IPno: 8823 Firm Name: Haden Address: Haden House 485 Birmingham Road City Postcode: Bromsgrove B61 0HZ WEST HAM STADIUM LTD: Liquidation Proceedings ---------------------------------------------- Company Name: West Ham Stadium Ltd Company No: 224959 Com. Business: Dormant Appointed on: 05/09/00 Type: Members Appointed by: Members Liquidators: Richaes J Hassall IPno: 5751 Firm Name: KPMG Address: PO Box 730 20 Farringdon Street City Postcode: London EC4A 4PP WIMBLEDON STADIUM LTD: Liquidation Proceedings ---------------------------------------------- Company Name: Wimbledon Stadium Ltd Company No: 224566 Com. Business: Dormant Appointed on: 05/09/00 Type: Members Appointed by: Members Liquidators: Richaes J Hassall IPno: 5751 Firm Name: KPMG Address: PO Box 730 20 Farringdon Street City Postcode: London EC4A 4PP 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 * * *