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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

      Wednesday, November 15, 2000, Vol. 1, No. 135

                        Headlines


C Z E C H   R E P U B L I C

ALIATEL: Posts a Loss of CSK 349 Million


F R A N C E

INTERCALL: Insolvent Company Waits for Rescue Bid


G E R M A N Y

PHILIPP HOLZMANNN:  Faces Legal Case


H U N G A R Y

MOL: Oil Group Sues Government over Losses
MOL: Posts First Half Loss of HUF 37.6 Billion


I R E L A N D

GLANBIA PLC: Faces Financial Crisis
KAVANAGH: Grain Business Collapses


I T A L Y

E.BISCOM:  Posts Nine Months Net Loss of 102.9 Billion Lire
OLIVETTI SPA: Posts Nine Months Net Loss of EUR1.022 Billion


L I T H U A N I A

KONCERNO SBA: Rights to Corporate Stock Holdings Restricted


N E T H E R L A N D S

WORLD ONLINE: Faces Insider Trading Investigation


N O R W A Y

SCHIBSTED ASA:  Posts Q3 Net Loss of 77 Million Nkr


P O L A N D

HUTA KATOWICE:  Corus Drops JV Plans with Polish Steel Mill
PLL LOT: Reports Nine Months Pre-Tax Loss of 64 Million Zlotys
ZYWIEC GROUP: Closing Two Production Plants and Cutting Jobs


R U S S I A

MEDIA MOST: Gazprom Agrees on USD 211.6 Million Debts


U N I T E D   K I N G D O M

ADVHAND LTD: Liquidation Proceedings
ARNOLD SUDDABY: Liquidation Proceedings
BRITISH TELECOMMUNICATIONS: Plans to Float Wireless Unit
BRITISH TELECOM:  Goes Into Restructuring
COPPERTHWAITE DECORATORS: Liquidation Proceedings

EQUITABLE LIFE:  Eureko Set to Bid for Struggling Mutual
INTEKNE LTD: Liquidation Proceedings
INTERFLEET NETWORK: Liquidation Proceedings
JUST BAKED: Liquidation Proceedings
MILLENNIUM DOME: Call for Dome Minister to Step Down

MODERN PRODUCTS: Liquidation Proceedings
POLARCUP CONTAINERS: Liquidation Proceedings
SOAP CO: Liquidation Proceedings
SWAN FINANCIAL: Liquidation Proceedings
TELSPEC:  Faces Closure of Loss-making Subsidiaries

TOYOTA MOTOR (UK): Warns of UK Losses


Y U G O S L A V I A

PROGRES GAS: Serbian Officials Plan Probe of Gazprom Debt


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

ALIATEL: Posts a Loss of CSK 349 Million
----------------------------------------
British telecom group Energis Plc is in talks to acquire Czech
phone operator Aliatel and could close a deal by the end of this
year, one of Aliatel's owners said on Friday. The company posted
a loss of CSK 349 million (USD 8.7 million). Aliatel, founded
four years ago, is owned by Czech electricity distributor
Jihoceska Energetika and German utility RWE Energie. It provides
Internet and data transmission services. Jihoceska said that
Energis and its parent company National Grid Ltd. would buy all
of Aliatel if the deal is closed, Reuters reported this week.


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

INTERCALL: Insolvent Company Waits for Rescue Bid
-------------------------------------------------
The share price of French pre-paid telephone card company
Intercall resumed trading last week after the announcement that
it had become insolvent. The company's shares had fallen 69.02
percent by the close of trade to 4.96 euros, making an 87 percent
drop since the beginning of the year, La Tribune & World Reporter
noted last week. The company was not able to carry out its
planned reconstitution of capital equity, originally set for
October 16, but brought into doubt after Bouygues Telecom
suspended delivery of mobile telephones due to non-payment of
FFr13m. Intercall's management are still hopeful a buyer can be
found. Liberty Surf has been floated as a possible candidate.


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

PHILIPP HOLZMANNN:  Faces Legal Case
------------------------------------
Dow Jones Newswires noted last week that the Belgian holding
company Gevaert NV's legal case against Deutsche Bank AG and
Philipp Holzmann AG was scheduled to begin this week but has
since been postponed. The case has been transferred to a
different court in Frankfurt, German agency news VWD reported.
Gevaert's suit alleges that Deutsche Bank and German construction
firm Philipp Holzmann gave insufficient warning of potential
risks to Holzmann shareholders in a prospectus for a capital
increase in 1998. Gevaert had been a holder of one-third of
Holzmann's shares. Gevaert said Deutsche Bank should have been
aware of the risks because of its close ties with Holzmann.
Deutsche Bank denies the allegations.


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

MOL: Oil Group Sues Government over Losses
------------------------------------------
Hungary's MOL oil and gas company took the government to court
last week charging it would suffer huge losses this year as a
result of an insufficient rise in gas prices permitted by the
state in June, Agence France-Presse reported last week. MOL
claims it will have lost HUF 90 billion (EUR 342 million, USD 295
million) by the end of the year after the government permitted
only a 12-percent rise in prices. Gas prices are around 25
percent of the European average. MOL argued that Hungarian
legislation on energy gives the government the right to determine
prices, but under the same law, the "prices should contain the
costs of the effective operation of the retailer as well as the
profits needed for its long-term survival," one member of MOL's
legal team said.

The government's lawyers said they wanted the claim being heard
at the Budapest municipal court withdrawn as "you cannot cause
damage with a law". But it added that if this was the case, the
matter should be dealt with by the Supreme Court. The municipal
court expects to produce a verdict on November 20.


MOL: Posts First Half Loss of HUF 37.6 Billion
-----------------------------------------------
Reuters reported this week that losses in the gas division of
Hungary's MOL have likely wiped out profits expected in its oil
business in the third quarter of the year. SG Securities analyst
Dan Schultz in an earnings preview said: "We believe that gas
division losses will offset strong earnings performances by the
Exploration and Production and the Refining and Marketing
Divisions".

MOL is scheduled to publish nine-month results this week. The
government capped gas price hikes for the year at 6 percent in
June in order to rein in inflation, a move which MOL said at the
time could cause a loss of up to HUF 100 billion in its gas
business this year due to surging import gas prices. MOL's gas
business posted a HUF 37.6 billion loss in the first half of the
year.


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

GLANBIA PLC: Faces Financial Crisis
---------------------------------------
Food group Glanbia plc has issued a full-year profit warning. The
group, formed out of the merger of Avonmore and Waterford, must
deliver a plan that has euro 500m in debt. But the problems at
Glanbia plc are now spreading to the co-op. The co-op has debts
of around 30 million pounds in its own right. The co-op owns over
50pc of the shares in the plc. The financial strains on the plc
reflects the urgency for the group's management to put something
in place to tackle debt. The Irish Independent noted this week
that the current climate is not good for finding buyers for meat
processing businesses willing to pay a decent price.


KAVANAGH: Grain Business Collapses
----------------------------------
Doras reported last week that the Kavanagh grain business of
Maynooth has withdrawn a plan to put a scheme of arrangement to
creditors. The move increases the likelihood that provisional
liquidator David Hughes will be confirmed as a full liquidator in
court this week. The High Court has also agreed to discharge
orders of a creditors' meeting on November 23. The company
collapsed earlier this month with estimated liabilities of IR20
million pounds.


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

E.BISCOM:  Posts Nine Months Net Loss of 102.9 Billion Lire
-----------------------------------------------------------
Italian broadband network operator E.Biscom said it posted a nine
months group net loss of 102.85 billion lire ($45.67 million) on
turnover of 18.16 billion lire, Reuters noted this week. The
company, floated on Milan's tech-laced Nuovo Mercato at the end
of March, said in a statement that consolidated EBITDA was
negative to 42.38 billion lire. There were no comparisons
available. E.Biscom said that amortization totaling 14.58 billion
lire meant the group posted an operating loss of 56.96 billion
lire.


OLIVETTI SPA: Posts Nine Months Net Loss of EUR1.022 Billion
------------------------------------------------------------
Olivetti SpA's nine month net loss was EUR1.022 billion including
its share of goodwill for Telecom Italia SpA (TI), the company
told Dow Jones Newswires on Saturday. Olivetti took over Telecom
Italia in 1999 and now functions chiefly as a holding company. In
the third quarter alone, Olivetti's net loss amounted to EUR539
million, including goodwill for TI. Olivetti said that at a
consolidated level for the full year, the group would break even
before amortization of goodwill. At the end of September,
Olivetti's net debt was EUR37.587 billion, of which EUR18.616
billion was for the TI group, up EUR9.031 billion from end June.


=================
L I T H U A N I A
=================

KONCERNO SBA: Rights to Corporate Stock Holdings Restricted
-----------------------------------------------------------
Prosecutors in Kaunas, Lithuania's second-largest city, this week
restricted the ownership rights of Koncerno SBA Investicija to
its holdings of corporate stocks. BNS & Euromoney reports that
the prosecutor's office has initiated a financial audit of the
company following allegations in the local press that the
management of Koncerno SBA Investicija violated the interests of
small shareholders. Koncerno SBA Investicija is an SBA Group
company that owns 15 enterprises in the textile, furniture, oil
and chemical industries.


=====================
N E T H E R L A N D S
=====================

WORLD ONLINE: Faces Insider Trading Investigation
-------------------------------------------------
The Times reported yesterday that Dutch police raided the
Amsterdam headquarters of World Online on Monday as part of an
insider trading investigation into the March float of the
Internet company. The disastrous flotation marked the end of an
Internet share boom that saw loss-making European dot-com
companies valued at billions of pounds. World Online is being
bought by Italy's Tiscali for 3.5 billion pounds, half its value
at flotation just six months after joining the Amsterdam stock
market.

The flotation of World Online turned into a national scandal in
Netherlands when it emerged that Nina Brink, the company's
founder, had sold ten million shares for about 62 million pounds
to three investment companies only months before its stock market
debut. Brink also agreed with one of the buyers to share further
profits on the shares if they were sold on above a set price.

Furious investors in World Online, whose shares collapsed in
value almost immediately after the company's flotation, said the
sale suggested that Brink was not confident of the company's
value when it joined the stock market. They also claim that the
sale was not made clear in the company's prospectus. World Online
said it was "fully co-operating" with the investigation. It added
that it welcomed "the opportunity to end the rumors and
allegations which have been circulating". The raid, carried out
by the Dutch Department of Justice, resulted in the company's
shares plunging 9.3 per cent to euro 12.15 (728p).


===========
N O R W A Y
===========

SCHIBSTED ASA:  Posts Q3 Net Loss of 77 Million Nkr
---------------------------------------------------
AFX noted last week that Schibsted ASA posted a net loss of 77
Million Nkr in the third quarter to Sept 30. Earnings per share
(EPS) loss was 1.06 nkr.


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

HUTA KATOWICE:  Corus Drops JV Plans with Polish Steel Mill
-----------------------------------------------------------
Anglo-Dutch steelmaker Corus Plc said on Friday of last week that
it had dropped plans to invest in Poland's largest steel mill
Huta Katowice, part of the Polish company's long-delayed
privatization plans. Corus said: "The negotiations have been
ended and the project will not be developed to a conclusion".
Officials at troubled Huta Katowice said the firm's future now
depends on the decisions of the Polish government.

Katowice spokesman Mariusz Kwasniowski told Reuters, "Our
management is now holding talks with the treasury and economy
ministries. We are waiting for the results of the negotiations,
so it's difficult to say what will happen next". He did not
provide further details and both ministries declined to comment.

Reuters noted that ahead of the news of the breakdown of the
talks Deputy Economy Ministry Edward Nowak said that the
country's biggest steel mill could be facing insolvency if Corus
quits the cooperation talks.

Corus said it had not been able to conclude an alternative
agreement within the tight time scale set by the Polish Treasury
Ministry and Huta Katowice's creditors. The decision to drop the
plans was taken at a meeting in London on last Thursday. The two
deals have been seen as a breakthrough in the privatization of
Poland's ailing steel sector, with a total debt reaching PLZ 8.7
billion (USD 1.91 billion). The Polish steel industry badly needs
foreign investment, but sales of companies have been held up by
poor finances and government indecision on how to package the
mills.


PLL LOT: Reports Nine Months Pre-Tax Loss of 64 Million Zlotys
--------------------------------------------------------------
PLL LOT, Poland's national air carrier, said on Monday that its
pre-tax loss nearly doubled to about 64 million zlotys ($13.96
million) in the first three quarters of 2000 due to a drastic
rise in global fuel prices, Reuters noted this week. The state-
controlled company, in which Swiss aviation group SAirGroup holds
37.6 percent, said its revenues grew 14.5 percent to 2.2 billion
zlotys in the first nine months. LOT, which was partially
privatized last year, carried 2.16 million passengers in the
January-September period showing a 7 percent increase over the
same period last year.


ZYWIEC GROUP: Closing Two Production Plants and Cutting Jobs
------------------------------------------------------------
The Zywiec Group, which consists of Zywiec, Lezajsk, Warka and EB
breweries, plans to close its production plants in Gdansk and
Lancut, Poland A.M. reports this week. Almost 400 employees have
already been laid off this year, and a further 300 jobs will be
eliminated in 2001. Company officials said terms of workforce
reduction will be negotiated with trade unions and Zywiec major
shareholder Heineken will offer a zl. 20 million total severance
package.

According to Zywiec Group corporate director Krzysztof Rut, "The
decision was the result of two factors: rising prices of
ingredients and falling profitability of the smaller branch
breweries. Meanwhile the government has announced another
increase in excise duty. In these kinds of circumstances improved
efficiency can be achieved mainly by cost reductions and
optimization of production power." In the first ten months of
this year, the Zywiec Group sold about 6.65 million hectoliters
of beer, 10 percent less than in 1999.


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

MEDIA MOST: Gazprom Agrees on USD 211.6 Million Debts
-----------------------------------------------------
Media-Most holding and Gazprom have reached an agreement on the
media empire's USD 211.6 million debt, Prime Tass News &
Euromoney reports this week. Media-Most will pay off with a part
of its stock, according to the agreement signed on Saturday,
Media-Most spokesman Dmitry Ostalsky told ITAR-TASS. The news
about the agreement came as the Office of the Prosecutor General
was expecting Vladimir Gusinsky for interrogation over unlawful
asset stripping and was ready to file accusations against him.

Ostalsky said: "The agreement does not involve either the
editorial policy of the holding, or any personnel reshuffling".
The agreement is to be judged by the Zamoskvorestsky Moscow
district court on November 14, which is considering a lawsuit
against Gusinsky.


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

ADVHAND LTD: Liquidation Proceedings
-------------------------------------
Company Name: Advhand Ltd
Company No: IR
Appointed on: 10/10/00
Type: Members
Appointed by: Members
Liquidators: Aidan R O'Connell IPno:
Firm Name: Deloitte & Touche
Address: Earlsfort Terrace
City Postcode: Dublin 2


ARNOLD SUDDABY: Liquidation Proceedings
----------------------------------------
Company Name: Arnold Suddaby & Co Ltd
Company No: 2529365
Appointed on: 10/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: John Russell IPno: 5544 Allan Cooper 5546
Firm Name: Poppleton & Appleby
Address: 93 Queen Street
City Postcode: Sheffield S1 1WF


BRITISH TELECOMMUNICATIONS: Plans to Float Wireless Unit
--------------------------------------------------------
British Telecommunications, announced plans to float its wireless
and network divisions to cut its debt by 10 billion pounds. The
group said it would list up to 25 percent of BT Wireless in the
second half of next year. BT's balance sheet is carrying massive
debt.

Reuters noted last week that at the end of September the debt was
18.74 billion pounds but it is estimated to rise to over 30
billion pounds by March 2002. Chief Executive Peter Bonfield said
its primary route to providing global communications will be
Concert, its 50/50 joint venture with AT&T, and the companies
were discussing ways to broaden and strengthen the alliance.
Describing the shake-up as the most radical restructuring in the
telecoms industry, Bonfield said BT would create a new, lean
holding company and signaled further job cuts.


BRITISH TELECOM:  Goes Into Restructuring
-----------------------------------------
British Telecom said it was selling its stake in Swiss joint
venture Sunrise for 460 million pounds, to reduce its huge debt
burden. It announced the sale of the 34 percent stake to
TeleDanmark, another shareholder in fixed-line operator Sunrise,
just 10 minutes before the venture was due to participate in a
Swiss auction of third-generation mobile phone licenses. BT
announced restructuring plan on Thursday to raise five billion
pounds from flotations and five billion from disposals to reduce
its 30 billion pound debt, Reuters reported this week.


COPPERTHWAITE DECORATORS: Liquidation Proceedings
--------------------------------------------------
Company Name: Copperthwaite Decorators Ltd
Company No: IR
Appointed on: 10/10/00
Type: Members
Appointed by: Creditors
Liquidators: Edward Walsh IPno:
Firm Name: Edward Walsh & Co
Address: 10 Taney Crescent
City Postcode: Dublin 14


EQUITABLE LIFE:  Eureko Set to Bid for Struggling Mutual
--------------------------------------------------------
Eureko, the pan-European insurance group which includes Friends
Provident of the UK, is preparing to enter the bidding for
Equitable Life, the life insurance mutual which was forced to put
itself up for sale in July, Independent News reports this week.
The Dutch-based company, which announced plans for an initial
public offering (IPO) in July, is working with Chase, its
bankers, on a proposal and is expected to decide later this week
whether to make a formal offer.

Independent News noted that Friends is preparing a 5bn pounds
flotation next year and its recent moves have suggested that it
may be willing to step aside leaving room for Equitable Life to
become Eureko's main UK partner. Unlike the Pru, which would
close down Equitable Life's life fund and write all new business
into its own life fund, Eureko would simply repair Equitable
Life's damaged life fund and re-float the business. Equitable is
expecting final offers by the end of this month.


INTEKNE LTD: Liquidation Proceedings
-------------------------------------
Company Name: Intekne Ltd
Company No: 3146611
Com. Business: IT Support
Appointed on: 10/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: David R Acland IPno: 8894
Firm Name: Begbies Traynor
Address: 1 Winckley Court Chapel Street
City Postcode: Preston PR1 8BU


INTERFLEET NETWORK: Liquidation Proceedings
--------------------------------------------
Company Name: Interfleet Network (Finance) Ltd - The
Company No: 3515414
Appointed on: 10/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: A J Findlay IPno: 8744
Firm Name: Findlay James
Address: Kensington House 33 Imperial Square
City Postcode: Cheltenham GL50 1QZ


JUST BAKED: Liquidation Proceedings
------------------------------------
Company Name: Just Baked Ltd
Company No: SC
Appointed on: 10/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: William D Robb IPno: 5199
Firm Name: W D Robb
Address: Scott House 12/16 South Frederick Street
City Postcode: Glasgow G1 1HJ


MILLENNIUM DOME: Call for Dome Minister to Step Down
----------------------------------------------------
Tory leader William Hague last week accused Dome Minister Lord
Falconer of lying to Parliament and called on him to resign the
same day a government issued a report detailing gross
mismanagement of the attraction. The Express reported last week
Lord Falconer has rejected resignation with the backing of Prime
Minister Tony Blair. Last week's National Audit Office report
found the Dome Minister has been unable to effectively manage the
troubled Dome.


MODERN PRODUCTS: Liquidation Proceedings
-----------------------------------------
Company Name: Modern Products (Lindsey) Ltd
Company No: 848774
Appointed on: 10/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Philip M Lyon IPno: 2108
Firm Name: Mazars Neville Russell
Address: Akrill House Clasketgate
City Postcode: Lincoln LN2 1JJ


POLARCUP CONTAINERS: Liquidation Proceedings
---------------------------------------------
Company Name: Polarcup Containers Ltd
Previous Name: Keyes Huntsman Ltd
Company No: 1285089
Com. Business: Dormant
Appointed on: 10/10/00
Type: Members
Appointed by: Members
Liquidators: Ian C Oakley Smith IPno: 2000 David J Waterhouse
5732
Firm Name: PricewaterhouseCoopers
Address: Plumtree Court
City Postcode: London EC4A 4HT


SOAP CO: Liquidation Proceedings
---------------------------------
Company Name: Soap Co of Ireland Ltd
Company No: IR
Appointed on: 10/10/00
Type: Members
Appointed by: Members
Liquidators: Donald Bailey
IPno: 6739
Firm Name: Begbies Traynor
Address: Elliot House 151 Deansgate
City Postcode: Manchester M3 3BP


SWAN FINANCIAL: Liquidation Proceedings
----------------------------------------
Company Name: Swan Financial Services Ltd
Company No: IR
Appointed on: 10/10/00
Type: Members
Appointed by: Creditors
Liquidators: Michael Butler IPno:
Firm Name: Butler & Co
Address: 49 Fitzwilliam Square
City Postcode: Dublin 2


TELSPEC:  Faces Closure of Loss-making Subsidiaries
---------------------------------------------------
Networking equipment company Telspec warned that its results for
2000 will be below market expectations and will show a loss at
the pre-tax level. Two customers who have chosen Telspec's switch
have postponed the introduction of their networks. In addition,
the company's access division has faced a shortage of some key
components, which has disrupted production. There will also be
provisions and charges for the closure of some loss-making
subsidiaries before the end of the year, Citywire reported this
week. Telspec shares are down 24.5p at 69.5p.


TOYOTA MOTOR (UK): Warns of UK Losses
-------------------------------------
Toyota Motor, the world's third largest carmaker, has issued
warnings of mounting losses in its UK manufacturing operations
because of the strong pound and slowing demand for some models,
Reuters reported this week. Toyota Motor Manufacturing (UK), the
main British division, made pre-tax losses of 52 million pounds
last year compared with a profit of 19.1 million in 1998. Sales
fell to 1.31 billion pounds from 1.36 billion. Toyota officials
have warned of much larger losses this year. Output at the
company's main car plant at Burnaston was expected to be flat
this year at about 179,000 vehicles, almost 20 percent below
capacity.


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

PROGRES GAS: Serbian Officials Plan Probe of Gazprom Debt
---------------------------------------------------------
Natural gas monopoly Gazprom resumed gas supplies to Yugoslavia
last week after Serbian officials said they were planning to
investigate a huge debt owed to Gazprom by a Yugoslavia-based
company suspected of being one of the financial pillars of ousted
leader Slobodan Milosevic's government. Serbian officials say the
debt owed by Progres Gas Trade is about $240 million, The Moscow
Times reported last week. The company is a joint venture between
Gazprom and Serbia's Progres, one of Yugoslavia's two largest
trading companies, which is headed by ousted Serbian Prime
Minister Mirko Marjanovic.

"There should be an investigation into this debt, to check
whether it's just a debt for gas or maybe something more,"
Nebojsa Covic, deputy prime minister in Serbia's transitional
government, said. Gazprom officials did not respond to written
requests for information Friday. According to the Moscow Times,
the results of the investigation notwithstanding, the new
Yugoslavian government has pledged to honor PGT's debts to
Russia.



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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