/raid1/www/Hosts/bankrupt/TCREUR_Public/001018.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

             Wednesday, October 18, 2000, Vol. 1, No. 115
  
                               Headlines

C Z E C H   R E P U B L I C

CEZ:  Up for Privatization
KOMERCNI BANKA: Various Bidders Express Interest
PLATAN PROTIVIN: Protivin to Sell Brewery to Three Entrepreneurs


E S T O N I A

NITROFERT: Debt-Ridden Chemical Firm's Fate to be Clear Next Week


G E R M A N Y

ADAM OPEL:  Year 2000 Loss will be Less than 270 Mln Dmk-Paper
GIGABELL AG: Chief Quits Amid Bitterness
PHILIPP HOLZMAN: Domestic Operations Set to Post Loss


H U N G A R Y

BABOLNA: APV Rt to Launch Privatization, Faces Financial Crisis
MALEV AIRLINES: APV Rt to Launch Privatization
POSTABANK:  OTP Express Interest


I T A L Y

COIN GROUP: Speeds Up Restructuring of its Standa Unit Stores


R U S S I A

KRASNOYARSK PULP:  Production Stop at Pulp Mill Over Debts
MEDIA-MOST: Russian Bank Sues Overdue Loans


S W I T Z E R L A N D

BATIGROUP:  To Report a First Half Loss of 25.7 Million Francs


U N I T E D   K I N G D O M

AARON EXTENSIONS:  Liquidation Proceedings
AVON S U EXPORT: Liquidation Proceedings
CALLNET: E-Tel Ventures Acquires Internet Service Provider
DE FACTO 393: Liquidation Proceedings
FIN MAC: Liquidation Proceedings

FINELIST: Spotlight Falls on Andersen, Under Scrutiny
KALAIN LTD: Liquidation Proceedings
MG ROVER: Struggling Carmaker Faces a Boardroom Revolt
MG ROVER:  Union Chief Rides to Aid
MARKS & SPENCER: Potential Bidders to Watch and Wait

MARKS & SPENCER:  Marks and Spencer to Close 20 Stores
MILLENIUM DOME: Canary Wharf Possible Buyer for the Dome
NEWCASTLE LTD: Records 18.9 Million Pounds Loss Before Tax
SG COWEN: Liquidation Proceedings
SCOTTISH OPERA: Faces Cash Crisis

SOCIETE GENERALE: Liquidation Proceedings
SOCIETE GENERALE: Liquidation Proceedings
STOCKHOLDERS INVESTMENTS: Liquidation Proceedings
TRIVISION LTD: Liquidation Proceedings


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

CEZ:  Up for Privatization
--------------------------
Czech A.M. reported yesterday that Electricite de France (EdF) is likely to
compete with British-American International Power (until recently National
Power) in the upcoming privatization of energy giant CEZ and six regional
energy distributors, Deputy Finance Minister Jan Mladek said. Mladek indicated
that lack of interest in the sale stems from the controversial Temelin nuclear
power plant included in the package. Mladek added that the interest of French
state-owned EdF offered "a nuclear umbrella" against anti-Temelin protests in
Austria. International Power does not operate a nuclear power plant but is
said to be teaming up with an American group strong in nuclear power
production, Mladek said.


KOMERCNI BANKA: Various Bidders Express Interest
------------------------------------------------
A parliamentary steering committee for the privatization of the Czech
Republic's largest commercial bank, Komercni Banka a.s., announced plans to
draw up a shortlist of potential buyers by mid-November. Ministry spokesman
Libor Vacek said 32 investors had received a so-called privatization
memorandum, but would not reveal how many were seriously interested. Deputy
Finance Minister Jan Mladek, however, said last week he had spoken with five
European banks interested in buying the state's 60 percent stake in the last
remaining government-controlled bank, The Daily Deal noted yesterday.

Analysts here pointed to Italy's UniCredito Italiano SpA and Germany's
HypoVereinsbank AG as the front-runners. Others who have expressed interest
include Spain's Banco Santander Central Hispano SA, France's Societe Generale
SA and Allied Irish Bank Group. Bank Austria Creditanstalt's investment
banking unit, CAIB Securities, is working with Goldman Sachs as adviser on the
privatization. However, since HypoVereinsbank is taking over Bank Austria,
analysts say a conflict of interest could force CAIB to withdraw. But until
the merger is approved by the European Commission, the two banks are acting as
separate entities.


PLATAN PROTIVIN: Protivin to Sell Brewery to Three Entrepreneurs
----------------------------------------------------------------
CTK & Euromoney reported yesterday that the town of Protivin would sell the
Platan Protivin brewery to three entrepreneurs from the North Bohemian town
Liberec for Kc65m, which is the same price for which it bought Platan from the
Jihoceske pivovary brewery four months ago. Having made its decision on
Thursday last week, the municipality thus turned down bids by breweries
Oettinger Bier of Bavaria, Germany, and North Ernlight, Great Britain, because
the condition was that the brewery be sold only to Czech entity or entities.

According to CTK & Euromoney the new owners, Jaroslav Kaspar, Ivan Hurnik and
Michalis Dzikos, will pay in addition to the Kc65m, some fees and especially
default interest on the payment Protivin has so far failed to make to
Jihoceske pivovary.  Protivin will retain only a symbolic 1 pct of Platan
shares to preserve the brewery's name Mestsky pivovar Platan. The new owners
impressed the municipality by their professional experience in the field. One
of the owners, Kaspar, is a co-owner of the brewery Pivovar Svijany in the
Liberec district, which last year trebled its annual beer output to 95,000
hectolitres.


=============
E S T O N I A
=============

NITROFERT: Debt-Ridden Chemical Firm's Fate to be Clear Next Week
-----------------------------------------------------------------
The director general of the debt-ridden chemical company Nitrofert based in
Kohtla-Jarve, northeastern Estonia, hopes to return next week from Hungary
with concrete investment agreements. Nikolai Kutashov has been on a business
trip to Hungary for some while and has been putting off his return from day to
day. An assistant to the director Thursday told BNS that next week would bring
clarity whether talks with investors in a planned methanol factory were a
success. "When he returns he will certainly give answers as to the results,"
she said. The chemical company that was owned by the Russian gas monopoly
Gazprom caught the attention of the media at the end of last month when it
turned out that it had brought its owners a loss of 187.4 million kroons (USD
10.4 mln) in the last two years.

The regional newspaper Pohjarannik then carried an interview with Kutashov in
which the director maintained that the huge loss will not prevent the firm
from completing negotiations with investors on building a methanol production
facility, which have been going on with varying success since 1997. The
business daily Aripaev wrote on Thursday that Nitrofert owes roughly 70
million kroons to Eesti Energia(Estonian Energy), Eesti Gaas (Estonian Gas)
and Uhispank and that the creditors are not prepared to wait for their money
any longer. The planned investment in the methanol plant is 100 million
dollars.


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

ADAM OPEL:  Year 2000 Loss will be Less than 270 Mln Dmk-Paper
-----------------------------------------------------------------
Reuters reported last week that German carmaker Adam Opel AG, a unit of
General Motors Corp., was reported as saying its net loss in 2000 will be far
below the figure of 270 million marks ($119.5 million) that has been
circulating in the press. But Opel Chief Executive Robert Hendry, in an
interview with German newspaper Welt am Sonntag, repeated that Opel would be
unable to return to profit in 2000. "We will not return to profit this year
either," Hendry said. The company made an operating loss of 225 million marks
and a net loss of 81 million marks in 1999.

Hendry's comments contradicted a recent report in German magazine "Capital"
that said Opel expected an after-tax loss of 270 million marks for 2000
instead of a planned profit of 305 million marks. He also reiterated that he
does not plan to retire as chief executive, rejecting newspaper reports which
had suggested that he had already informed Opel's supervisory board of his
plan to leave at the end of 2001 rather than in 2003, when his contract
expires. "There is no timetable and no exit scenario. I will stay until my
mission has been accomplished," Hendry said. Welt am Sonntag released the
report ahead of publication.


GIGABELL AG: Chief Quits Amid Bitterness
----------------------------------------
Daniel David, the chief executive of beleaguered German Internet service
provider Gigabell AG has resigned, effective immediately, Handelsblatt
reported yesterday. In a statement late Thursday, Daniel said that his
decisions had been rejected by members of the board, that other decisions had
been made expressly against his will and that he'd been increasingly cut off
from company information. Daniel said he couldn't represent the interests of
both the company and investors adequately, in the absence of a full
supervisory board. He said he was no longer prepared to take responsibility
for Gigabell's decisions in which he had no involvement, as in special
circumstances these could lead to a demand for payment from shareholders.

According to David, recent decisions had been made by other board members,
Funke and Stassen, with approval in part coming from Pfeil, the provisional
insolvency manager. First names of these board members weren't immediately
available. Finnish company Saunalahti Oyj came to Gigabell's rescue when it
recently filed for insolvency proceedings.


PHILIPP HOLZMAN: Domestic Operations Set to Post Loss
-----------------------------------------------------
The slump in the German construction industry is hindering Philipp Holzmann AG
from returning to profit. Chairman Konrad Hinrichs told Handelsblatt that an 8
percent drop in German demand for new construction in the first eight months
of the year meant that Holzmann was set to miss its output target of DM3.5
billion for its national construction operations, and was expecting to book an
operating loss for these activities for the full year. "A break-even result is
the best we can hope for," Hinrichs said. In speaking of the group's national
construction operations, Hinrichs made it clear that he was referring to all
Holzmann sites plus Munich-based subsidiary Imbau. All other interests in
Germany were performing in line with targets, he added. Foreign business
meanwhile was producing better-than-expected results, Hinrichs said. Total
group output was forecast to reach DM13 billion this year, with foreign
business accounting for around DM7 billion. As a result, Hinrichs said he is
optimistic that the group as a whole will still manage to post a modest
positive result for 2000. "But all will depend on what the remaining months
bring - in particular on the domestic market."

Handelsblatt said earlier this week that in November 1999, Holzmann unveiled
unexpectedly high losses, which brought it close to collapse. It managed to
escape bankruptcy after its creditors - with the backing of the German
government - agreed on a rescue package. People close to Holzmann's creditors
said the news of the group's performance on its home market did not come as a
surprise. They pointed out that a number of leading German construction groups
has already announced a strong decline in domestic profit.

Hinrichs was not expected to report any surprise developments at Holzmann's
next round of talks with creditors. The reorganization of the group's
construction activities was progressing as planned, Hinrichs said. It had cut
capacity by around 40 percent, with costs so far having been slashed by DM520
million. By the end of the year, savings are to have reached DM580 million
while the workforce is to be cut by 5,900 from January. Further reductions
were not planned but could become necessary if domestic demand continued to
decline, Hinrichs said.


=============
H U N G A R Y
=============

BABOLNA: APV Rt to Launch Privatization, Faces Financial Crisis
---------------------------------------------------------------
The State Privatization and Holding Agency (APV Rt) will initiate a
modification of legislation on long-term state-owned assets, which would allow
the state's stake in Babolna Rt to drop to 50 percent plus one vote, Budapest
Business Journal reported. Currently, the agricultural holding company is
facing serious financial woes. If the APV Rt cannot find investors to inject
capital into the group, it will have to shoulder at least Ft 5 billion-Ft 10
billion in reorganization costs. The APV Rt is in talks with the Ministry of
Agriculture and Rural Development about reducing the state's majority stake in
the company.

The Babolna group had consolidated equity of Ft 19.35 billion ($82.7 million)
at the end of last year, portfolio director Csanad Deli said. Deli would not
reveal Babolna's first half results. Under last year's consolidated figures,
Babolna posted Ft 190 million in operating profits on sales of Ft 54.26
billion, but ended the year in the red, with net losses of Ft 1.18 billion.
Babolna's non-consolidated losses ran to Ft 636 million last year, Budapest
Business Journal reported yesterday.


MALEV AIRLINES: APV Rt to Launch Privatization
-----------------------------------------------
Budapest Business Journal reported yesterday that the board of the State
Privatization and Holding Agency (APV Rt) is scheduled to decide this week on
the launch of the privatization tender for Malev Hungarian Airlines Rt, APV
head Gyula Gansperger said last week. Under the privatization plan for Malev,
which was developed by ING Barings, the APV Rt will invite bids from 20
airlines, encompassing the world's five big strategic air alliances. At
present, the APV Rt holds 96 percent of Malev's shares. The APV Rt will offer
potential strategic buyers a 10 percent stake through a capital raise.

Following the sale of existing shares, the APV Rt's stake in Hungary's flag
carrier could drop to 50 percent plus one vote. The first phase of Malev's
privatization is expected to come to an end in the first or second quarter of
2001, Gansperger said. The APV Rt will sell a further 25 percent stake to
Hungarian investors, while keeping 25 percent plus one vote, securing a 50
percent plus one vote majority Hungarian ownership in the airline.


POSTABANK:  OTP Express Interest
--------------------------------
Hungary's largest commercial bank OTP confirmed that it was considering
purchasing Postabank from the state to expand its market stake, but said it
would buy only at fair value and low risk. "Of course we would assess on a
business and a profit basis the value of the market stake represented by
Postabank, and how it can be made more profitable," OTP Vice President Zoltan
Speder told Reuters. The shares of OTP fell 6.5 percent on the Budapest bourse
to HUF 14,000 (USD 46.08) after state privatization agency APV confirmed press
reports that selling Postabank to OTP was one of the two options for
privatizing the bank. The other solution mulled by the state is a public
auction.

According to Reuters last week that the options were outlined by APV's advisor
in the sell-off, Credit Suisse First Boston, in a report, which will be the
basis of a Finance Ministry proposal to be submitted to government by the end
of this month. Speder said OTP would need an audited Postabank balance sheet
and a thorough examination of the bank's operations and risks involved in them
before making its decision on a deal. "Before its three share issues OTP went
through very thorough due diligence three times, thus we learnt the methods by
which banks are usually evaluated," he said. Speder said OTP shares fell due
to "irresponsible" market speculation over the price it would have to pay for
Postabank. He said OTP did not have enough information to estimate the price.

"We would pay the price which (Postabank) is worth for OTP and not more," he
added. "Otherwise we would like to maintain our efficiency ratios." Postabank
was consolidated by the state in 1998 at a total cost of over USD 800 million,
after it accumulated huge losses. Speder said OTP would only buy a Postabank,
which is separated from the risks involved in its past operations, including
loan, investment, legal, operations and other risks. He said integrating
Postabank would raise OTP's market stake in banking assets to 28 percent from
24, in client deposits to 35 percent from 31 and in customer credits to 17 or
18 from 15. "We would like to do this with cutting costs at the same time," he
said. "Our IT system is able to take over all assets and accounts in
Postabank, thus we don't need extra investment," he added.


=========
I T A L Y
=========

COIN GROUP: Speeds Up Restructuring of its Standa Unit Stores
-------------------------------------------------------------
Italian department store chain Coin group said it closed the first half of its
financial year to July 31 with net turnover of 995.7 billion lire ($444.2
million) against a year-ago 1.041 trillion lire. Its pre-tax loss was 50.6
billion lire against a previous 32.2 billion lire loss, the company said in a
statement, adding that first half EBITDA rose to 29.3 billion lire against
11.5 billion, Reuters noted last week. The company said that in the period it
had speeded up restructuring of its Standa unit stores and completed most of a
three-year program to convert them into the same format as its Oviesse and
Coin stores.


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

KRASNOYARSK PULP:  Production Stop at Pulp Mill Over Debts
--------------------------------------------------------------
The production of paper and cardboard was fully stopped at the Krasnoyarsk
pulp and paper mill because the supply of process steam has been cut off owing
to the mill's debts to the power industry, an official in the press service of
the mill has told Itar-Tass. The mill's current debts to the power industry
run at about 100 million roubles. However, the management of the mill dispute
this figure, for they believe that the Krasnoyarskenergo power company
management overstate tariffs unfoundedly. The power industry workers, for
their part, refuse to reconsider their pricing policy. The Krasnoyarsk pulp-
and-paper mill is one of the largest ones in Russia's east. It produces 40,000
tons of paper and about 80,000 tons of cardboard every year. Twenty-four hours
of idle time cost it about three million roubles in losses, Itar- Tass noted
last week.


MEDIA-MOST: Russian Bank Sues Overdue Loans
-------------------------------------------
Associated Press reported last week that a state-controlled Russian bank
announced it was suing Russia's Media-MOST group for $30 million in overdue
loans, the latest challenge to the media group already embroiled in a
political and business controversy. Vneshekonombank chief Andrei Kostin said
Media-MOST owes his bank a total of $142.5 million, and that it plans to file
more suits to demand payment, the Interfax news agency reported. The $30
million was used to launch a communications satellite and build ground
facilities. Media-MOST, which includes the only major independent television
network in Russia, several newspapers and a popular radio station, has been
the target of several government investigations in recent months.

Media-MOST and its supporters say the action is an attempt to muzzle
independent media, while government officials deny any political motivation.
The company's offices were raided by masked, armed police this spring, and its
owner, Vladimir Gusinsky, was jailed for four days in June on charges of
defrauding the government. The charges were later dropped. The company is now
battling takeover attempts by Russian natural gas giant Gazprom, which is
partly state-owned, and is owed hundreds of millions of dollars by Media-MOST.
At Gazprom's request, Russian prosecutors are investigating whether Media-MOST
had illegally transferred assets abroad to hide them from the gas monopoly,
Associated Press said.


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

BATIGROUP:  To Report a First Half Loss of 25.7 Million Francs
--------------------------------------------------------------
Reuters noted earlier this week that the Swiss construction group Batigroup is
set to publish a first half loss of 25.7 million Swiss francs ($14.7 million)
in the coming week, or 10 million more in losses than last year, the
Sonntagszeitung said on Sunday. The paper quoted a draft of the news release
due later this week and quoted Batigroup chief executive Werner Helfenstein as
confirming the figure. The losses are due to miscalculations at a big project
in Zurich as well as continued pressure on profits in Germany. "The
miscalculation led to losses of eight to nine million francs," Helfenstein was
quoted as saying about the Zurich housing project.


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

AARON EXTENSIONS:  Liquidation Proceedings
------------------------------------------
Company Name: Aaron Extensions Ltd
Company No: 3081574
Com. Business: General Builders
Appointed on: 15/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Richard A Hopper IPno: 8028
Firm Name: Haslers
Address: Johnston House Johnston Road
City Postcode: Woodford Green IG8 0XA


AVON S U EXPORT: Liquidation Proceedings
---------------------------------------
Company Name: Avon S U Export Ltd
Previous Name: Issuehold Ltd
Company No: 2620044
Com. Business: Non-Trading Co
Appointed on: 15/09/00
Type: Members
Appointed by: Members
Liquidators: David R Wilton IPno: 5708 Adrian R Stanway 2665
Firm Name: PricewaterhouseCoopers
Address: Cornwall Court 19 Cornwall Street
City Postcode: Birmingham B3 2DT


CALLNET: E-Tel Ventures Acquires Internet Service Provider
----------------------------------------------------------
The Daily Telegraph noted last week that Callnet, the Internet service
provider (ISP) that recently ran out of cash, has been sold as a going concern
to telecoms investment company E-Tel Ventures. The ISP ran into problems after
it began offering Callnet0800, an Internet service that charged a low monthly
fee for unlimited access. Over the past six months a number of companies,
including AltaVista and Lineone have failed to make these kinds of services
economically viable. In Callnet's case, Callnet0800 cost it nearly pounds 14m
by the time it was withdrawn at the start of last month. This forced Callnet
into administration on September 22, with seven-figure debts outstanding to
its telecoms providers, Cable & Wireless and Worldcom. Malcolm Cohen, a
partner at BDO Stoy Hayward who was called in as Callnet's administrator,
said: "We are pleased to have achieved a sale.

However, the value of this kind of technology company is whatever the market
will bear and in this case the money raised will not clear all the outstanding
debts." Callnet claimed it still had 210,000 subscribers on its pay-as-you-go
service, which has continued to operate while a buyer was found. E-Tel hopes
to float on the Alternative Investment Market early next year.


DE FACTO 393: Liquidation Proceedings
------------------------------------
Company Name: De Facto 393 Ltd
Company No: 3015255
Com. Business: Dormant
Appointed on: 15/09/00
Type: Members
Appointed by: Members
Liquidators: Paul F Jeffery IPno: 5768
Firm Name: KPMG
Address: Aquis Court 31 Fishpool Street
City Postcode: St Albans AL3 4RF


FIN MAC: Liquidation Proceedings
-------------------------------
Company Name: Fin Mac Engineering Ltd
Company No: SC
Com. Business:
Appointed on: 15/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: Fraser J Gray IPno:
Firm Name: Kroll Buchler Phillips
Address: Afton House 26 West Nile Street
City Postcode: Glasgow G1 2PF


FINELIST: Spotlight Falls on Andersen, Under Scrutiny
-----------------------------------------------------
The Times reports that Arthur Andersen, the accounting giant is set to come
under scrutiny after it was revealed yesterday that the firm failed to
identify financial irregularities in the accounts of Finelist, the auto parts
supplier that collapsed earlier this month, in two separate due diligence
studies commissioned earlier this year. Arthur Andersen is believed to have
completed two studies of Finelist's accounts before the company was bought in
February for œ159 million by a consortium of French venture capitalists, which
trade as Europe Auto Distribution (EAD).

Sources close to Finelist said that neither of the studies uncovered "anything
material" in the accounts. However, EAD asked Arthur Andersen to conduct a
third investigation in August. It was then that it found the irregularities
that led to Finelist being placed in receivership. An Arthur Andersen
spokesman denied last night that the firm's work constituted due diligence. He
said Arthur Andersen had done "limited investigation work" for EAD. But he
refused to say if this was done before or after EAD agreed to buy Finelist.
"They (have asked us to say that it is a matter between us and them," the
spokesman said.


KALAIN LTD: Liquidation Proceedings
------------------------------------
Company Name: Kalain Ltd
Company No: 3268798
Com. Business: Builders
Appointed on: 15/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: Keith Blades IPno: 6763
Firm Name: Blades
Address: 19b Market Place Bingham
City Postcode: Nottingham NG13 8AP


MG ROVER: Struggling Carmaker Faces a Boardroom Revolt
------------------------------------------------------
The struggling carmaker MG Rover faces a boardroom revolt this month with the
group's non-executive directors threatening to vote John Towers out of his
chairman's office, Sunday Times said earlier this week. The supervisory board
of Techtronic (2000), the private holding company of MG Rover, will hold an
emergency meeting on October 27 to discuss the future direction of the
company. The board consists of eight members, four of whom are non-executive.
The non-executives will make three demands of Towers. First, that he scales
down the group's annual production target of 200,000 cars. Second, that he
immediately hands 35 percent of the group's equity to Longbridge workers.
Third, that he comes clean on his plan to prepare the company for sale, which
could net millions for Towers and the three other executive board members.

According to the Sunday Times the four non-executives are Richard Ames, head
of the council of Rover dealers, David Bowes, managing director of the racing-
car group Lola, Brian Parker, an independent financier, and Terry Whitmore,
managing director of Mayflower. The four executive members, who control the
share capital in MG Rover, are Towers, Nick Stephenson, vice-chairman, John
Edwards, head of the John Edwards dealer network, and Peter Beale, Edwards'
finance director. From his holiday villa in Portugal, Towers instructed
Stephenson to contact all the directors last week to assess how much support
there was for him. A statement from Rover's supervisory board denied that any
demands had been made or contemplated and that the non-executives were fully
behind the plans.

There is also the issue of whether BMW is going to compensate MG Rover for the
gap in the accounts. "I understand Towers has told the Germans the assets are
next to worthless and is demanding 600m pounds to cover the discrepancy," said
the executive. "As I understand it, he would be asked to leave the room while
the seven remaining directors conduct a secret ballot. I'm sure at least four
would vote against him. Therefore he would be out." The non-executives are
expected to demand clarification on which "major manufacturer" Towers is
talking to about a deal to share a new car platform. Proton, the Malaysian
maker, has stepped back after its shareholders expressed skepticism about
involvement with Longbridge, Sunday Times said.


MG ROVER:  Union Chief Rides to Aid
------------------------------------
Union leader Tony Woodley last night called for an end to sniping at MG Rover,
saying the criticism was "tremendously destabilizing" for the struggling car
manufacturer, the Guardian reported yesterday. The chief motor industry
negotiator for the Transport & General Workers Union was speaking after a week
in which the future of MG Rover turned into a political football as Tory and
Labour politicians traded blows over it. And there was further media
speculation of a rift between different members of the supervisory board of
Techtronic (2000), the private holding company of Rover. Mr Woodley said: "I
spoke yesterday to [Rover chairman] John Towers in Portugal and he said the
only way to put a halt to these stories is to get all eight board members
together in front of the media to show our unity. There is no doubt that
misrepresentation of facts by the press is not helping sales for the company."

Rover will hope to help as it hosts for the press ahead of the annual motor
show which starts in Birmingham without the home company's involvement. And
Rover received a welcome boost at the end of last week when management and
union officials tied up the first wage agreement for the 5,500 staff since the
company was taken over from BMW. The offer, which will give pay increases of
up to 10 percent but ask for various benefits to be traded in, should be put
to a workforce vote over the next few days. The business climate is still
tough. Rover has seen its European car registrations plunge by nearly 50
percent last month compared to 12 months earlier. Rover insists it can remain
a volume car producer committed to 200,000 units a year. But it admits that it
is in talks with another big player whose support it needs to help develop new
models to eventually replace the Rover 25 and the Rover 45.

There has been endless speculation that discussions had been going on with
Proton but the Malaysian car company denied this and Mr Towers has refused to
give further details. While worries continue about falling sales, the unions
have remained firmly behind the Rover management as Mr Woodley's complaints
about destabilizing rumor and speculation underline. They have been supportive
since the Towers team launched its bid for Rover because of its plans for
continued volume production.


MARKS & SPENCER: Potential Bidders to Watch and Wait
----------------------------------------------------
Rival retailers were happy to dish out advice to Marks & Spencer's embattled
management last week. The latest brick to smash through the window at M&S's
Baker Street headquarters came from the Competition Commission, whose report
on supermarket pricing inadvertently revealed M&S's profits from its food
division. Investors had suspected its profitability was slowing. Yet the
figures showed profits falling off a cliff - down 37 percent in 1998-99 from
the previous year, putting them 46 percent below their peak in 1996.

Analysts again moved to downgrade their estimates of M&S's profitability and
the shares sank to fresh lows. M&S managers fired off calls to the commission
asking how confidential information had come into the public domain. Most
potential bidders seem content to watch and wait while the company flounders,
Sunday Times reported earlier this week.

Alan McWalter, marketing director of M&S, points out that 1999 was the lowest
point for profits in the food division, which was hit by a sharp increase in
selling space and bills from investing in deli and butcher counters and new
tills. But his reassuring message is somewhat undermined by the fact that the
food division, until now the jewel in the crown for M&S, has no chief
executive to defend its honor. Roger Whiteside, the previous incumbent, left
in the spring and a replacement has not yet been found. McWalter points out
that Luc Vandevelde, M&S's Belgian executive chairman, has a background in
food retailing and keeps a close eye on the division. But this does not
comfort analysts, who say M&S's strength in food relies on constant innovation
to stay ahead of the supermarkets.

Even more bad news looms for M&S in financial services. David Jeary at Credit
Suisse First Boston forecasts that profits from the division will fall from
116m pounds in the year to March to œ85m in the current financial year and to
65m pounds in 2001-02. There are two main reasons for this. The first is the
decision to accept mainstream credit cards, which reduced the proportion of
sales on M&S's own store card from 27 percent to 21 percent without providing
a boost to sales. Second, M&S has reduced the interest rates on its cards,
cutting the profits to be made from customers who do not pay their bill
promptly. Shareholders are less impressed by column inches - their interest is
in whether the campaign will generate sales.

Many traditional British fund managers have already deserted M&S, leaving
value investors such as America's Franklin as key shareholders. M&S shares
have been tumbling for three years and it is hard to find investors who
believe an uplift is imminent. Results out next month are not likely to
provide much cheer and M&S itself admits the turn round will take at least two
years.
  

MARKS & SPENCER:  Marks and Spencer to Close 20 Stores
------------------------------------------------------
Reuters reported last week that the Britain's Marks and Spencer Plc is to
close 20 stores in a bid to revive its flagging fortunes. The closures are to
include 12 of the 19 outlets it bought from Littlewoods three years ago in a
192 million pound ($281.6 million) deal. The paper said that up to 1,500 staff
would be affected by the closures which could involve some compulsory
redundancies. Details of the closure programme are to be given when the
retailer announces its half-year profits next month. A decade ago, M&S was
Britain's most profitable retailer but sales have nose dived in the past two
years.


MILLENIUM DOME: Canary Wharf Possible Buyer for the Dome
--------------------------------------------------------
Mail on Sunday noted yesterday that the owner of London's Canary Wharf
docklands office development is emerging as a possible buyer for the
Millennium Dome. If talks between the government and property developer Robert
Bourne's Legacy consortium collapse, it would open the door to Paul
Reichmann's Canary Wharf group which last week became the biggest property
company in Britain.



NEWCASTLE LTD: Records 18.9 Million Pounds Loss Before Tax
----------------------------------------------------------
The Times reports that Newcastle United fell almost 20 million pounds into the
red yesterday as a series of losses on transfers and higher wages for star
players mounted up. The club recorded 18.9 million pounds losses before tax
for the year to July 31, compared with a profit of 1.4 million pounds last
year. Player trading profit fell by 9.8 million pounds as Bobby Robson, the
club's manager, sold off a raft of players bought by Ruud Gullit, his
predecessor. The club also wrote down a further 4.1 million pounds lost on
players already bought. Last year the club made a profit of 12 million pounds
selling on players, which tumbled to 2 million pounds in 2000. The club also
claimed that soaring wage bills for star players had also hit the bottom line.
Operating costs, which are largely made up of players' wages, increased by 17
per cent to 44.3 million pounds, compared with 37.8 million pounds last year.


SG COWEN: Liquidation Proceedings
---------------------------------
Company Name: SG Cowen International UK Ltd
Company No: 2911038
Com. Business: Dormant
Appointed on: 15/09/00
Type: Members
Appointed by: Members
Liquidators: Paul F Jeffery IPno: 5768
Firm Name: KPMG
Address: Aquis Court 31 Fishpool Street
City Postcode: St Albans AL3 4RF


SCOTTISH OPERA: Faces Cash Crisis
---------------------------------
Sunday Times reported yesterday that the Scottish Opera would close as a full-
time company unless it is given an extra 1.5m pounds in government funds. If
the funds are not forthcoming, the opera company will eventually be forced to
become a part-time operation with fewer performances, less staff and a status
not worthy of a national arts company. The opera, which was last year saved
from certain bankruptcy with a 2.2m pounds emergency government grant, is
locked in funding discussions with the Scottish Arts Council and the Scottish
executive. The current board of Scottish Opera, which is chaired by Duncan
McGhie, has considered the option of resigning en masse if the opera is forced
to end its days as a full-time concern.

According to the Sunday Times that the need for the extra funds comes less
than a year after the company was saved from closure by emergency funds from
the executive. The bail-out caused a political backlash when it was revealed
that the money had been earmarked to reduce class sizes in Scottish schools.
The opera's new chief executive, Christopher Barron, said that in order to not
increase the company's considerable debts, the coming season had been "cut to
fit the cloth". He confirmed that as part of the preparation for the company's
forthcoming three-year plan, the pressing need for an extra 1.5m pounds in
revenues had been made plain to the executive. "We're fighting like mad to
stay as a full-time company," he said. "It's been an issue over a number of
years now that our income doesn't match our expenditure. "We will need some
public money, we're very clear about that and we've made our case." Barron
said the extra money was vital to Scottish Opera's reputation as an
internationally acclaimed company capable of working throughout Scotland, as
well as being an employer of more than 230 full-time staff.


SOCIETE GENERALE: Liquidation Proceedings
------------------------------------------
Company Name: Societe Generale Gilts Ltd
Company No: 2982189
Com. Business: Dormant
Appointed on: 15/09/00
Type: Members
Appointed by: Members
Liquidators: Paul F Jeffery IPno: 5768
Firm Name: KPMG
Address: Aquis Court 31 Fishpool Street
City Postcode: St Albans AL3 4RF


SOCIETE GENERALE: Liquidation Proceedings
------------------------------------------
Company Name: Societe Generale Options UK Ltd
Company No: 2487458
Com. Business: Dormant
Appointed on: 15/09/00
Type: Members
Appointed by: Members
Liquidators: Paul F Jeffery IPno: 5768
Firm Name: KPMG
Address: Aquis Court 31 Fishpool Street
City Postcode: St Albans AL3 4RF


STOCKHOLDERS INVESTMENTS: Liquidation Proceedings
--------------------------------------------------
Company Name: Stockholders Investments Ltd
Company No: 1967261
Com. Business: Investment Dealing/Trading
Appointed on: 15/09/00
Type: Members
Appointed by: Members
Liquidators: Simon P Bower IPno: 8338 M J Hore 1630
Firm Name: RSM Robson Rhodes
Address: 186 City Road
City Postcode: London EC1V 2NU


TRIVISION LTD: Liquidation Proceedings
---------------------------------------
Company Name: Trivision Ltd
Company No: 3731599
Com. Business: Builders
Appointed on: 15/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: Keith Blades IPno: 6763
Firm Name: Blades
Address: 19b Market Place Bingham
City Postcode: Nottingham NG13 8AP



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
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