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       T R O U B L E D   C O M P A N Y   R E P O R T E R     

                          E U R O P E

          Thursday, October 19, 2000, Vol. 1, No. 116

                           Headlines

C Z E C H   R E P U B L I C

CEZ: Ministry Wants Kc200bn from Sale of Power Utilities


F R A N C E

LE MERIDIEN:  Hotel Properties Up for Sale
MICHELIN: To Cut 950 Factory Jobs


G E R M A N Y

RADIO.DE:  Goes to Insolvency


H U N G A R Y

MALEV AIRLINES:  Budapest Makes Fresh Bid to Get Off the Runway


I R E L A N D

QUALCERAM SHIRES:  80 Jobs to go at Bathroom Firm


L A T V I A

LATVIJAS KUGNIECIBA: LPA Hopes to Sell Shares


P O L A N D

DAEWOO POLAND: Polish Van Unit to Sack 30 Percent of Employees


R U S S I A

TOMSKENERGO: Gas Debt Amounts to RUR 38 Mln as of October 1, 2000


S W E D E N

RAZORFISH: Cuts 37 More Jobs


U N I T E D   K I N G D O M

ASPTECH LTD: Liquidation Proceedings
CAPITAL CONSTRUCTION: Liquidation Proceedings
CELLTALK: Suffers Heavy Losses
CHELSEA FOOTBALL: Pre-Tax Losses Widen to 3.5 Million Pounds
COBDALE HOLDINGS: Liquidation Proceedings

EBOOKERS.COM: Announces Losses of STG7.24 Million
EGG PLC:  Pretax Loss Widens 7 percent to 115.1 Mln Pounds
ERIC RYAN: Liquidation Proceedings
FLEXER CONSTRUCTION: Collapsed Cabling Firm Cuts 280 Jobs
FLOWERS BY ARRANGEMENT: Liquidation Proceedings

JOHN MENZIES: Liquidation Proceedings
JONAH HC: Liquidation Proceedings
KOREA GROWTH: Liquidation Proceedings
MG ROVER: Faces Financial Crisis
MILLENIUM DOME:  Prescott Resists Pressure for Quick Dome Sale

MILLENIUM DOME:  Canary Wharf Owner 'Wants to Buy Dome'
MILLENNIUM DOME:  Dome May Become a Rock Venue
NTL: Carries About 9 Billion Pounds Debts
PAYTON CONSTRUCTION: Liquidation Proceedings
POWERGEN: Sells Subsidiary Power Station for 398 Million Pounds

SONY MANUFACTURING UK: Blames Strength of Pound for Job Losses
STYLO: Struggling Shoe Retailer Axes its Board
TELEWEST: Carries About 4 Billion Pounds of Debt


Y U G O S L O V I A

SLOVENSKE LODENICE: Up to Restructure


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

CEZ: Ministry Wants Kc200bn from Sale of Power Utilities
--------------------------------------------------------
The Industry and Trade Ministry expects that the privatization of
the power generating company CEZ and six distributors will bring
in up to Kc200bn but is keeping the exact sum secret, CTK &
Euromoney reported yesterday. "We cannot disclose the concrete
estimated sum for tactical reasons," LN quotes Dagmar Placha, the
ministry's spokeswoman, as saying. However, the sum will be
higher than Premier Milos Zeman's and Finance Minister Pavel
Mertlik's estimate of Kc100bn, Placha told LN. "I assume it might
be some Kc100bn. The National Property Fund, which is always a
bit soberer, estimates the proceeds at Kc80bn," Mertlik said.

On Oct. 4 the government decided to privatize CEZ jointly with
the six distributors in which the state holds majority stakes.
The final sum will be influenced by many factors. It will depend,
for example, on whether the investor has the duty to buy out
shares from minority shareholders or not, LN quotes Patria
Finance's analysts Ondrej Schneider.


===========
F R A N C E
===========

LE MERIDIEN:  Hotel Properities Up for Sale
-------------------------------------------
Accor, the French hotels group which owns the Sofitel and Novotel
chains, yesterday said it would not take part in an auction for
Granada Compass's Le Meridien brand after talks between the two
groups over a sale of the whole hotels portfolio collapsed late
on Monday, the Independent reported yesterday. But analysts said
it was unlikely that the French group had abandoned entirely its
interest in the Le M,ridien properties. One said: "It could be
that they are planning a deal whereby someone else buys [the
hotels] and Accor manages them."

Jean-Marc Espalioux, Accor's chief executive, said the French
company did not intend to participate in the auction process,
barring "unforeseen developments". He said the rationale for
buying the package of Granada Compass hotels, which also includes
the Posthouse, Heritage and Signature chains, had been "to take
advantage of the diversity of the brands".

Granada Compass opened the bidding for all or part of its hotel
assets, which are valued at about 3bn pounds, after its
negotiations with Accor foundered. The move is expected to lead
to the break-up of the former Forte empire.

A spokesman for RF Hotels, the company created by Rocco Forte
following Granada's takeover of the former Forte group in 1996,
said Mr Forte "would not be looking to buy [the hotels] back".
Other possible bidders include Hilton, the hotels to gaming
group, Bass, which recently sold its brewing unit, and Whitbread,
which runs the Marriott and Travel Inn brands in the UK. David
Michels, Hilton's chief executive, has confirmed his interest in
Le Meridien. Officials at Bass and Whitbread declined to comment.
Granada Compass shares closed down 7.5p at 600p.


MICHELIN: To Cut 950 Factory Jobs
---------------------------------
French tyre manufacturer Michelin plans to slash 950 jobs at one
of its four factories in Britain, as it seeks to centralize
output and cut production costs. Michelin will make the cuts by
the end of next year at its plant at Stoke-on-Trent. The current
work force of 2,350 is to fall to 1,400.
"It is a sad day for Michelin and for Stoke-on-Trent because it
signals the end of what will be nearly 74 years of Michelin tyre-
making in Stoke," said site manager Jim Rickard, the Independent
News reported yesterday.

According to the Independent, the decision came as Michelin
struggles with rising costs in Europe. Last month the company
blamed a weak euro, rising commodity prices and slower inventory
growth for a decline of almost 28 percent in half-year profits.
The Transport and General Workers Union called the layoffs a
"devastating blow," and the Government promised a quick response.
"Our key aim will be to find new job opportunities for the future
to replace those lost today," said Industry Minister Alan
Johnson. Michelin said the cuts would not affect its three other
UK plants, in Dundee, Burnley and Ballymena in Northern Ireland.


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

RADIO.DE:  Goes to Insolvency
-----------------------------
German web broadcasters, www.radio.de, which belongs to the IMP
Group AG, and CyberRadio AG, have registered insolvency owing to
a lack of income. Both companies hope to attract financially
strong partners in order to continue in business,
Wirtschaftswoche & World Reporter reported last week. Web radio
is capable of reaching a wide audience and new target markets,
and is often more economical than traditional wireless
broadcasting. E-commerce and banner advertising serve as a source
of income.


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

MALEV AIRLINES:  Budapest Makes Fresh Bid to Get Off the Runway
---------------------------------------------------------------
Financial Times reported yesterday that the directors of APV, the
Hungarian state holding and privatization company, must hope this
maxim does not apply to them if, as expected, they decide later
this month to launch the sale of Hungary's national airline. For
while APV boasts a decade of successful privatization deals, with
Malev Hungarian Airlines it suffered one aborted take-off. In
1993 Hungary sold 35 per cent of Malev to Alitalia. The dalliance
ended in tears five years later. "We'd like to think this was due
to problems in Italy," says Ferenc Szarvas, Malev's recently
appointed chairman. This time round APV is looking for something
more permanent. As Mr Szarvas euphemistically puts it, the second
attempt should "put the company into a new orbit".

APV argues that Malev offers a rare opportunity for a big carrier
to enter the region. The investor, expected to provide a capital
injection to set Malev on its feet and take it into a global
alliance, will hold a stake of just under 50 per cent (the state
must retain a majority to ensure national carrier status) and
will benefit from its "valuable routes and brand name" and a
"strong, expanding" local economy. In the past decade it has
upgraded almost all its fleet. APV hopes that Budapest's
impressive new airport terminals, which could make "a
strategically important hub with significant potential to
develop", will be the aces in its hand. It is aiming to complete
the sell-off by the end of the first quarter next year.

The pitch sounds good, but even in Hungary Malev's brand name is
in question. A number of flying incidents and a threatened
pilots' strike this summer, have tarnished its image. Passengers
gripe of patchy service from cabin crews, who in turn complain
privately of management favoritism, lack of incentives and
excessive working hours. "It is changing a bit, but Malev still
works much like an old communist company. The administration is
huge. Management changes every half year, bringing their old
friends along," said one air stewardess.

Then there's Malev's finances, which are in desperate need of a
trim. Profits last year of Ft5.4bn ($17.7m) were flattered by
extraordinary revenues from the sale of a subsidiary. Operations
lost Ft3.9bn. Mr Szarvas, while stressing Hungarian economic
growth and a 10 per cent rise in passengers this year, admits the
airline has problems. Malev is over-staffed. Its 26-strong fleet
consists of five types of aircraft, leading to high training and
maintenance costs.

Yet despite soaring dollar-priced aviation fuel, he hopes to cut
operating losses to Ft2bn this year by rationalizing routes and
pruning the 3,100 workforce. A loss making airline with such a
modest asset base is unlikely to attract a high price, notes Eli
Abeles of the London-based airline consultancy ABS. By selling
Malev "cheaply" the government would invite political criticism
in Budapest, however.

British Airways, which recently courted Malev, says that it is no
longer interested. That leaves KLM as another option, says Mr
Abeles. But the Dutch carrier is still licking its wounds after
the collapse of its merger talks with BA, and has more important
strategic concerns such as finding an Asian partner. At
investment bank ING Barings, APV's adviser, sentiment remains
positive. "This is the last, unaligned, quality airline waiting
to be privatized in the region. We are expecting pretty good
interest," said ING Baring's John Marshall. Perhaps. If not, APV
might just have missed the check-in time for Malev.


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

QUALCERAM SHIRES:  80 Jobs to go at Bathroom Firm
-------------------------------------------------
Ananova noted that the Irish bathroom manufacturer Qualceram
Shires is to cut 80 jobs from UK ceramics, acrylics and shower
manufacturer Shires, which it bought last month for 34 million
pounds in cash. Shires employs more than 660 people at production
sites in Longton and Hanley, Stoke-on-Trent; Bradford; Rochdale;
and Darwen, Lancashire. Qualceram Shires said no decision had
been made on where the jobs cuts would be made. The company will
sell Shires' Elland, Yorkshire, distribution centre, which
employs nine people, although not all these jobs will go.
Distribution will then be concentrated at Shires' distribution
centre in Bradford. Qualceram Shires chief executive John
O'Loughlin said following the Shires acquisition a review of its
operations was carried out which found cost savings could be
made. "Redundancies are also regrettably necessary. Over the
coming month we will seek to minimize these and every effort will
be made to assist individuals made redundant to find alternative
employment," he added.


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

LATVIJAS KUGNIECIBA: LPA Hopes to Sell Shares
---------------------------------------------
BNS & Euromoney reported yesterday that the Latvian Privatization
Agency (LPA) wants shares in Latvijas Kugnieciba (Latvian
Shipping Co, LASCO) be sold to the strategic investor at the end
of year, LPA Director General Janis Naglis said. Under the
agreement between the LPA and LASCO's sell-off adviser, the
shipping company's shares should be sold to the strategic
investor by Dec. 28. Naglis said he would be happy if LASCO's
shares were sold by the end of December.

He said that so far the adviser's work in relation to preparation
of LASCO for privatization proceeds according to the schedule and
the adviser has not asked to extend terms for implementation of
some work. As LASCO's privatization adviser has been approved
consortium made companies BDO New markets B.V., BDO Invest-Riga
and Logion B.V. Naglis said LASCO's privatization could be
positively influenced by decision of the LPA's council as of Oct.
13 to support LASCO's tanker fleet renovation project.


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

DAEWOO POLAND: Polish Van Unit to Sack 30 Percent of Employees
--------------------------------------------------------------
Reuters said yesterday that a Polish commercial vehicle maker
owned by Korea's Daewoo Motor said on Monday it plans to lay off
30 percent of its workforce, or 1,200 employees, blaming the move
on decreasing domestic demand for new vehicles. "The entire
market for delivery vehicles has been shrinking over the last
several months and fell 30 percent year-on-year in September
alone," Andrzej Binkowski, said the spokesman for Daewoo's unit
in the eastern Polish city of Lublin. "We had no choice but to
let go some of our people," he said, adding that the lay-offs
were not related to the financial troubles of its parent company.

The world's biggest automaker, General Motors, and its Italian
partner Fiat are in talks to buy a large chunk of the ailing
Korean firm. If completed, the deal would give the group a near
monopoly in car manufacturing in Poland, where Fiat and GM's Opel
unit already have operations. Daewoo's Lublin commercial vehicle
factory employs 4,000 people and its subsidiaries another 2,200.
Daewoo also owns a larger passenger car factory in Warsaw.


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

TOMSKENERGO: Gas Debt Amounts to RUR 38 Mln as of October 1, 2000
-----------------------------------------------------------------
Skrin Issuer noted yesterday that Tomskenergo, Tomsk region's
largest gas consumer, has managed to pay for three-fourths of
consumed gas. However the company's gas debt amounts to RUR 38
mln as of October 1, 2000.


===========
S W E D E N
===========

RAZORFISH: Cuts 37 More Jobs
----------------------------
Internet consulting and services firm Razorfish said on Monday it
would cut 37 jobs at its Stockholm office as part of a
reorganization, Reuters noted earlier this week. The cuts bring
the total number of Swedish workers laid off or recently moved to
different offices. The company warned earlier in October third
quarter earnings would be lower than expected partly due to a
seasonal slowdown in Europe.


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

ASPTECH LTD: Liquidation Proceedings
-------------------------------------
Company Name: Asptech Ltd
Company No: SC
Appointed on: 18/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: Michael J Reid IPno: 7327
Firm Name: Meston Reid & Co
Address: 12 Carden Place
City Postcode: Aberdeen AB10 1UR


CAPITAL CONSTRUCTION: Liquidation Proceedings
----------------------------------------------
Company Name: Capital Construction (Homes) Plc
Company No: 3458807
Com. Business: Property Dealer/Builder
Appointed on: 18/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: Michael Chamberlain IPno: 8735
Firm Name: Chamberlain & Co
Address: Aireside House 24-26 Aire Street
City Postcode: Leeds LS1 4HT


CELLTALK: Suffers Heavy Losses
------------------------------
Celltalk Group is warning that it's on course to make a loss for
the year after suffering heavy losses in its third quarter,
Ananova noted yesterday. The mobile phone distributor blames
several factors for its problems ranging from increased
competition and stock shortages cutting both margins and lower
revenues to the petrol crisis preventing mobile phones being
delivered. It says that 'WAP technology has not met with
consumers' expectations resulting in demand and usage being
significantly lower than the industry anticipated'. The result is
that losses totaling around 1.5 million pounds for the period
ended Sept 30 have knocked it off course, even though it raised
the revenues expected in its first half.

"These losses have used up a considerable proportion of the
company's funds but the directors are confident that the business
is now capable of becoming profitable going forward," it said.
"The joint managing directors have agreed to provide additional
loan facilities of up to 700,000 pounds on normal commercial
terms to the company which will enable sufficient funds being
available to support the ongoing business, assuming it performs
in line with the directors' expectations," it added. Celltalk was
formed in June when General Industries reversed into Celltalk.
Following the acquisition, the financial year-end has been
changed and the next report to shareholders will be for the seven
months ending Dec. 31 2000, it said.


CHELSEA FOOTBALL: Pre-Tax Losses Widen to 3.5 Million Pounds
------------------------------------------------------------
Chelsea Village, owner of Chelsea Football Club, has warned this
year would be "difficult" as it struggled to balance ever rising
player wages with the continuing cost of its new stand at
Stamford Bridge stadium, Ananova reported earlier this week.
Nevertheless increasing costs at the club meant pre-tax losses
widened in the year to June 30, to 3.5 million pounds, against
507,000 pounds losses at the same point last year. Turnover in
the period rose to 106.8 million pounds, against 91.5 million
pounds last time.

But chairman Ken Bates says the joint venture between Chelsea
Village, Chelsea Football Club and BSkyB to develop media
opportunities and create an Internet portal could be spun off and
floated on the London Stock Exchange. The current year would see
the long-awaited opening of the new West Stand and, while there
would be no contribution to the 2000/2001 figures, from 2001
onwards the company would see revenues from 7,000 extra fans a
game at Stamford Bridge. The group has also yet to see any great
returns from its decision to build new millennium suites -
targeted at corporate clients and offering silver service at
matches to up to 24 people. Of 17 being built in the new stand,
just two have been sold, although talks were being held over the
sale of another three, says Mr Bates.


COBDALE HOLDINGS: Liquidation Proceedings
------------------------------------------
Company Name: Cobdale Holdings Ltd
Company No: 1126014
Com. Business: Holding Co
Appointed on: 18/09/00
Type: Members
Appointed by: Members
Liquidators: A D Pillmoor IPno: 7243 S G Falconer 5911
Firm Name: HLB Kidsons
Address: Wilberforce Court Alfred Gelder Street
City Postcode: Hull HU1 1YH


EBOOKERS.COM: Announces Losses of STG7.24 Million
-------------------------------------------------
Internet travel company ebookers.com has announced losses of
STG7.24 million for its third quarter, an increase of 500 percent
from STG1.46 million in the same period last year, Electric News
noted earlier this week. The company's pan-European rollout has
meant that non-UK European sales accounted for 63 percent of all
sales during this period. Average customer spend is USD680 per
transaction, a figure Ebookers estimates to be over twice that
spent on average by the customers of its major competitors.
During the last quarter, ebookers.com also launched
ebookersfinance.com, in partnership with Moneygator.com, offering
travel customers additional financial products on the site.
ebookers.com which has made zero net financial investment in the
site.


EGG PLC:  Pretax Loss Widens 7 percent to 115.1 Mln Pounds
----------------------------------------------------------
Bloomberg reported earlier this week that Egg Plc, the U.K.
Internet bank whose shares have fallen 18 percent since the
initial public offering in June, said its nine-month pretax loss
widened by 7 percent because of rising costs to attract clients
from rivals. Egg reported a pretax loss of 115.1 million pounds
($167 million), or 11 pence a share, compared with a loss of 108
million pounds in the same period last year. The company still
expects to stop losing money by the fourth quarter of 2001.

Analysts said that's optimistic. ``We don't see the company
breaking even until at least the end of 2002,'' said Jonathan
Pierce, an analyst at HSBC Securities in London. Egg, which is 80
percent-owned by Prudential Plc, said it gained a net 107,000 new
customers in the third quarter, boosting its total client base to
1.2 million.

Paul Gratton, the company's deputy chief executive, will succeed
Harris as CEO in early 2001. Harris, 51, will become executive
vice-chairman to focus on strategy. London-based Egg and other
British banks including Halifax Plc, Barclays Plc and Woolwich
Plc are spending hundreds of millions of pounds to offer high
interest rates on deposit accounts and cheap credit as they
battle to attract customers to their Internet banks, Bloomberg
said.

Egg told reporters that operational costs increased 36 percent in
the nine months ended Sept. 30 to 139.9 million pounds as the
bank spent more to develop and market its products. The bank also
said it lost almost 13,000 deposit clients as customers chased
better rates offered by rivals, contributing to a decline in
deposit funds under management of 443 million pounds. The
company's clients bought an average of 1.25 products, in the
nine-month period, Gratton told reporters. Egg set aside more
money for bad and doubtful debts as it raised the number of
credit card customers by more than 97,000 to 595,792 in the
quarter. The number of clients taking out personal loans
increased 26 percent to 63,328 in the three months ended Sept.
30. Provisions for bad loans rose to 24.8 million pounds, from
3.1 million in the same period a year ago.


ERIC RYAN: Liquidation Proceedings
-----------------------------------
Company Name: Eric Ryan Ltd
Company No: IR
Appointed on: 18/09/00
Type: Members
Appointed by: Members
Liquidators: Sean P Sheehan IPno:
City Postcode: Dublin


FLEXER CONSTRUCTION: Collapsed Cabling Firm Cuts 280 Jobs
---------------------------------------------------------
Hundreds of workers are facing the axe at an electronics plant
and a specialist cabling firm. The collapse of Exeter specialist
cabling firm, Flexer Construction, has resulted in 280 staff and
500 sub-contractors being laid off, Ananova reported earlier this
week. The company, which also has a plant at nearby Pencoed,
plans to stop manufacturing small analogue TVs and develop its
digital products arm. A spokesman for the firm has added that the
AEEU union and the workers at the plant were fully consulted.


FLOWERS BY ARRANGEMENT: Liquidation Proceedings
------------------------------------------------
Company Name: Flowers by Arrangement Ltd
Company No: SC
Appointed on: 18/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: John C Reid IPno: 8556
Firm Name: Deloitte & Touche
Address: 39 St Vincent Place
City Postcode: Glasgow G1 2QQ


JOHN MENZIES: Liquidation Proceedings
--------------------------------------
Company Name: John Menzies Investments Ltd
Previous Name: Sharpegrange Ltd
Company No: 1608132
Com. Business: Investment Co
Appointed on: 18/09/00
Type: Members
Appointed by: Members
Liquidators: T M Burton IPno: 8224
Firm Name: Ernst & Young
Address: George House 50 George Square
City Postcode: Glasgow G2 1RR


JONAH HC: Liquidation Proceedings
---------------------------------
Company Name: Jonah HC Ltd
Company No: SC210112
Com. Business: Holding Co
Appointed on: 18/09/00
Type: Members
Appointed by: Members
Liquidators: T M Burton IPno: 8224
Firm Name: Ernst & Young
Address: George House 50 George Square
City Postcode: Glasgow G2 1RR


KOREA GROWTH: Liquidation Proceedings
-------------------------------------
Company Name: Korea Growth Geared Fund Plc
Company No: IR
Appointed on: 18/09/00
Type: Members
Appointed by: Members
Liquidators: David Hargaden IPno:
Firm Name: Hargaden Moor
Address: Grand Canal House 1 Upper Grand Canal Street
City Postcode: Dublin 4


MG ROVER: Faces Financial Crisis
--------------------------------
Mg Rover suffered a severe blow after BMW warned that it would
not improve the financial terms of its sale of the Longbridge car
plant. In a further setback, the German carmaker also indicated
that it may not sell MG Rover the car engine and gearbox
facilities on the Longbridge site which the British company is
desperate to buy, the Independent News noted yesterday.

The Phoenix consortium, which bought Longbridge in May for a
nominal 10 pounds and renamed the business MG Rover, had been
hoping to adjust the terms of the deal when it signs "completion
accounts" with BMW. Under the original deal, Phoenix received
$500m in working capital from BMW and all the assets of the
business, including stocks of unsold cars and components. It had
been hoping for an adjustment to the deal worth up to 150m pounds
to reflect the fall in value of its stock of cars and the decline
in residual values of contract lease cars which MG Rover is
obliged to buy back from fleet operators.

The engine plant produces around 200,000 K-series engines a year
for both MG Rover and Land Rover, which is now under Ford's
ownership. About 70 percent of the engines go into MG Rover
models. But Ford is understood to have voiced concerns to BMW
about the security of future engine supplies, which may result in
BMW selling the engine business to another manufacturer or an
existing engine supplier.


MILLENIUM DOME:  Prescott Resists Pressure for Quick Dome Sale
--------------------------------------------------------------
Reuters noted yesterday that the Britain's Deputy Prime Minister
John Prescott has resisted pressure from Prime Minister Tony
Blair for a quick sale of the beleaguered Millennium Dome to the
Legacy consortium. Legacy, headed by property entrepreneur Robert
Bourne who runs Bourne End Properties, was originally passed over
for Japanese investment bank Nomura, which abandoned plans to buy
the Dome last month over doubts about its assets and the need for
a large cash injection. Prescott had argued the process of
finding a buyer should be thorough, rather than a hurried attempt
to rid the government of the troubled London attraction.

It said international investment bank Lazard, adopted to advise
the government on the sale, had been seeking meetings with other
consortia and had already contacted at least one potential buyer.
Blair was understood to have told Lord Falconer, the Cabinet
Office minister responsible for the Dome, that it might be better
to hasten the sale of the Greenwich site, the paper said. Canary
Wharf Plc, seen as a potential buyer according to weekend press
reports, had ruled itself out as a possible bidder due to
commitments to its shareholders to complete its existing site and
return cash to them.


MILLENIUM DOME:  Canary Wharf Owner 'Wants to Buy Dome'
-------------------------------------------------------
The owner of the Canary Wharf complex in London's revitalized
Docklands area is leading the race to buy the ailing Millennium
Dome, This Is London reported earlier this week. Canary Wharf
Group which was last week valued as the UK's biggest property
company with a price tag of nearly 4 billion pounds - is emerging
as the favourite to take over the project just down the Thames at
Greenwich. The bid would be led by the group's Canadian chairman
Paul Reichmann, the tycoon credited with transforming the dingy
Docklands region into one of the capital's prime office complexes
with the symbolic Canary Wharf Tower the biggest building in
Britain.

If the conditions are right, the Mail on Sunday reported, Mr
Reichmann would be willing to attempt a similar rescue attempt
for the Dome, which has been pilloried continually since its
opening night hiccups on Millennium Eve. The move is understood
to be likely because all available land within the Docklands will
be developed within the next 18 months. The newspaper quoted a
source close to Mr Reichmann as saying that he was interested in
buying the Dome site - which is owned by English Partnerships but
not the Dome itself. The source was quoted: "What he really wants
is the 17 acres next to the Dome earmarked in the master plan for
a new central business district. But the problem is that the
extra land is a key part of the Legacy talks and Reichmann knows
that he might have to take on the Dome site as well."

Talks between English Partnerships and the Legacy Consortium are
on the brink of collapse, despite Legacy's claims to the
contrary. Legacy was itself only invited to explore the Dome's
future after Japanese investment bank Nomura pulled out of
negotiations last month, citing the lack of precise information
that had been made available to it. No one was available for
comment at Canary Wharf Group.


MILLENNIUM DOME:  Dome May Become a Rock Venue
---------------------------------------------
American businessmen are planning to transform the Millennium
Dome into a huge rock concert hall seating 70,000 people. The
U.S. consortium, which includes the management companies of
singer Michael Jackson and magician David Copperfield, has put
together a 135 million pounds bid for the Dome. It is said to
have the backing of a major American venture capitalist,
according to merchant bank Lazards, which was appointed by the
Government to oversee the sale. The plan, reported in the Daily
Telegraph, would turn the blighted Greenwich landmark into the
largest, and possibly the most soulless, concert venue in
Britain. Paul Stansfield, of Pilton Lane, who is leading the
American bid, said: "If you regard the Dome as half a table
tennis ball, we would insert an inverted ping-pong to create a
70,000-seat auditorium. This would still leave 850,000 square
feet for educational or leisure use."

This Is London noted earlier this week that the plan is the
latest in a long line of ideas suggested for the Dome which, with
its ailing visitor numbers and allegations of corruption, has
become the Government's most embarrassing mistake. Japanese bank
Nomura pulled out of talks to take over the Dome last month after
discovering that it was debt-ridden. Since then, Legacy plc has
been the front-runner with its plans to create a hi-tech business
park. Britain's biggest property company, Canary Wharf Group,
which was valued at nearly 4 billion pounds last week, is also
being tipped to take it over. A Culture Department spokesman said
negotiations will continue with Legacy, but if these break down,
other interested parties will be considered.


NTL: Carries About 9 Billion Pounds Debts
-----------------------------------------
The Independent News noted yesterday that Adam Singer, chief
executive of Telewest Communications, the cable operator and
thematic channels producer, yesterday ruled out a near-term
merger with NTL, the biggest UK cable group, due to the
companies' combined 13bn pounds debt load. "The real issue is
debt," said Mr Singer, commenting on why a merger is unlikely.
NTL carries about 9bn pounds of debt, Telewest nearly 4bn pounds.
"There are no merger talks going on at the moment," he said.
"Whether they're planned in the future, you're guess is as good
as mine," he told delegates at Broadband Communications Europe,
an industry trade show.

Mr Singer's remarks will disappoint minority shareholders in both
groups who have hoped that a merger to create one national UK
cable operator would revive the companies' flagging stock prices
and up the battle for market share with arch-rival BSkyB. Shares
in NTL and Telewest have plunged over 65 per cent since the tech
bull market went into reverse in March.

Telewest closed down 2.5p at 115.5P. NTL was down 3/16 to $40 at
midday on Nasdaq. The ownership structure of both groups is tied
to the interests of overseas companies. Microsoft and Liberty
Media, the content arm of AT&T, each own 26 percent of Telewest;
France Telecom owns 30 percent of NTL, while Microsoft holds a 3
percent stake.


PAYTON CONSTRUCTION: Liquidation Proceedings
---------------------------------------------
Company Name: Payton Construction Ltd
Company No: 3234596
Com. Business: Building/Construction Services
Appointed on: 18/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: P B Wood IPno: 5396
Firm Name: Barringtons
Address: Richmond House 570-572 Etruria Road
City Postcode: Newcastle ST5 0SU


POWERGEN: Sells Subsidiary Power Station for 398 Million Pounds
---------------------------------------------------------------
Gas and electricity group Powergen is to sell its Nottinghamshire
power station to power group Electricite de France for 398.3
million pounds, Ananova reported earlier this week. Under the
deal, the 166 staff at the coal-fired Cottam station will
transfer to Electricite de France's UK subsidiary, London
Electricity. Powergen says the sale is in line with its strategy
to focus on the UK and US, announced at the time of its massive 2
billion pounds takeover of US electricity and gas group LG&E
Energy Corp earlier this year.

The group says the sell-offs it plans both in the UK and
internationally will reduce its debts by 1 billion pounds. Ed
Wallis, chief executive of Powergen said: "We have conducted a
thorough bid process for Cottam and believe the agreement we have
reached with London Electricity reflects good value. The proposed
sale is subject to clearance by the European Commission and
completion is expected by the end of the year. London Electricity
emphasizes the deal will not affect staffing levels or operating
arrangements at Cottam.


SONY MANUFACTURING UK: Blames Strength of Pound for Job Losses
--------------------------------------------------------------
Sony has announced that 400 workers at its plant in South Wales
are to lose their jobs, blaming "increased exchange rate
volatility" for the decision, The Independent News reported
yesterday. The Japanese electronics giant said that the
fluctuating value of the pound and stiff competition were to
blame for the staff cuts. The South Wales plant makes top of the
range televisions and computer screens. The Japanese company has
indicated that it wants to concentrate further on making digital
TVs and professional TV cameras.

Tony Abbott, managing director of Sony Manufacturing UK, said:
"We are very sad that so many of our colleagues are having to
leave. The reorganization was very necessary if we are to remain
a major economic force in South Wales.


STYLO: Struggling Shoe Retailer Axes its Board
----------------------------------------------
Yorkshire Posts reports that Stylo, the struggling shoe retailer,
has taken the axe to its board as it continues cutting its stores
portfolio. Three of the seven directors are stepping down. Non
executive Nigel Colne resigned yesterday and will be followed
after next June's annual meeting by Alan Ziff, executive in
charge of special projects, and Keith Simpson, another non-
executive.

The moves follow the retirement in August of chairman Arnold
Ziff, who was succeeded by his son Michael. Alan Ziff is
Michael's second cousin. Stylo said the changes were necessary
because of the smaller size of the business. The Bradford company
has been reducing its portfolio to take account of tough trading
conditions. It has some 500 stores, down from nearer 700 in
recent times. The Matchmaker golf and riding clothes and
equipment wholesaler was sold to management yesterday for a
nominal ?1 after the team cleared debts of 1.85m pounds.

Yesterday Stylo reported pre-tax losses of 6.6m pounds before
exceptional in the half year to July 29. That compared with a
deficit of 9.3m pounds last time. As in previous years, there is
no interim dividend. Like for like sales in the half were down
2.3 percent, although the company said the second quarter was
break-even. In the second half, sales are said to be just ahead.
There has been speculation that the company might take itself
private or be snapped up by a predator. Corporate raider Sir Ron
Brierley has a stake of about 4 percent via his active investment
vehicle Guinness Peat.


TELEWEST: Carries About 4 Billion Pounds of Debt
------------------------------------------------
The Independent News noted yesterday that Adam Singer, chief
executive of Telewest Communications, the cable operator and
thematic channels producer, yesterday ruled out a near-term
merger with NTL, the biggest UK cable group, due to the
companies' combined 13bn pounds debt load. "The real issue is
debt," said Mr Singer, commenting on why a merger is unlikely.
NTL carries about 9bn pounds of debt, Telewest nearly 4bn pounds.
"There are no merger talks going on at the moment," he said.
"Whether they're planned in the future, you're guess is as good
as mine," he told delegates at Broadband Communications Europe,
an industry trade show.

Mr Singer's remarks will disappoint minority shareholders in both
groups who have hoped that a merger to create one national UK
cable operator would revive the companies' flagging stock prices
and up the battle for market share with arch-rival BSkyB. Shares
in NTL and Telewest have plunged over 65 percent since the tech
bull market went into reverse in March. Telewest closed down 2.5p
at 115.5P. NTL was down 3/16 to $40 at midday on Nasdaq. The
ownership structure of both groups is tied to the interests of
overseas companies. Microsoft and Liberty Media, the content arm
of AT&T, each own 26 percent of Telewest; France Telecom owns 30
per cent of NTL, while Microsoft holds a 3 percent stake.


===================
Y U G O S L O V I A
===================

SLOVENSKE LODENICE: Up to Restructure
-------------------------------------
Reuters noted that troubled Slovak ship builder Slovenske
Lodenice Komarno (SLK) said on Tuesday it had replaced its
management and would restructure with the aim of being sold to a
foreign investor. In a statement, SLK said its supervisory board
dismissed the company's board of directors on October 13 for
insufficiently discharging their duties in respect to a creditor-
approved consolidation plan.

It named Jozef Zucha, who headed a recently completed Arthur
Anderson audit of SLK, as the new chairman. "The strategic aim is
to consolidate the property of SLK the final step will be
acquiring a trustworthy strategic foreign investor," Zucha said
in the statement. The statement also said SLK's near-term goal is
to secure a DEM 29.5 million (USD 12.8 million) loan, which has
been negotiated since August, from Slovak bank VUB to fund the
construction of three new cargo ships, and to receive a state
guarantee for the loan.

SLK ran into trouble following NATO-led bombing of Yugoslavia
last year, which resulted in the blockage of Danube waterways,
which SLK uses to transport ships to its customers. A committee
of SLK's creditors accepted the shipbuilder's plans to revitalize
its business in August. Jaroslav Papp and Milan Kopcok were named
vice-chairs of the company, and the other five board members will
be named gradually according to the needs of the company.



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-
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USA, and Beard Group, Inc., Washington, DC USA.  Lexy Mueller,
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