/raid1/www/Hosts/bankrupt/TCREUR_Public/001120.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

         Monday, November 20, 2000, Vol. 1, No. 138


                         Headlines

B E L G I U M

CUSTOM SILICON: Posts a Nine Month Net Loss of EUR14.93 Million


C Z E C H   R E P U B L I C

CKD DOPRAVNI:  Firms Seek Bankruptcy Assets of Railway Car Firm


F R A N C E

DMC: Yarn Division Insolvent


G E R M A N Y

SAARSTAHL AG:  Faces Liquidation Proceedings


I T A L Y

MINARDI: Formula One Team Faces Bankruptcy


L A T V I A

LATVIJAS KUGIECIBA: Shipping Company Scheduled for Privatization


L I T H U A N I A

LIETUVOS KURAS: Posts a Loss of 26 Million Litas


N E T H E R L A N D S

FOKKER: Annual Accounts Mistakes


N O R W A Y

KVAERNER ENERGY:  Goes for Closure


P O L A N D

HUTA KATOWICE:  Faces Bankruptcy
HK STAL:  Brazilian Steel Group to Buy 80 Percent


R U S S I A

MEDIA-MOST: Collapse of Debt Deal Threatens Russian Media Firm


S P A I N

HEALTHLAND (SPAIN):  Esporta Buys Leisure Group for 1.4 Million
MECAPENA EQUIPOS: Goes for Temporary Receivership


S W I T Z E R L A N D

GRASSHOPPER ZURICH:  Records a Loss of 21.9 Million Swiss Francs


U N I T E D   K I N G D O M

AXA EQUITY: Liquidation Proceedings
AXA EQUITY: Liquidation Proceedings
AQUIS LTD: Liquidation Proceedings
AQUIS HOTELS: Liquidation Proceedings
ASSOCIATES BUSINESS: Liquidation Proceedings

BRITISH TELECOM: Goes for Reorganization
CRESTINA LTD: Liquidation Proceedings
DENPLAN GROUP: Liquidation Proceedings
DENPLAN PROFESSIONAL: Liquidation Proceedings
EQUITY & LAW: Liquidation Proceedings

MILLENNIUM DOME: Dome Deal in Doubt
PNC TELE.COM:  Posts Interim Pre-Tax Loss of 1.3 Million Pounds
RECOGNITION SYSTEMS: Posts Losses Rise to 4.7 Million Pounds
TELEWEST:  Posts Nine Month Pre-Tax Loss of 475.3 Million Pounds


=============
B E L G I U M
=============

CUSTOM SILICON: Posts a Nine Month Net Loss of EUR14.93 Million
---------------------------------------------------------------
Belgian chip packaging group Custom Silicon Configuration
Services NV (CS2) posted a bigger than expected net loss of
EUR6.441 million for the third quarter and EUR14.93 for the first
nine months due to one-time costs, Dow Jones Newswires noted last
week. The company didn't give equivalent figures for 1999. CS2
said in a statement that third quarter sales were EUR8.02
million, while nine-month sales were EUR17.45 million. Sales for
1999 were EUR3.1 million.


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

CKD DOPRAVNI:  Firms Seek Bankruptcy Assets of Railway Car Firm
---------------------------------------------------------------
Bankrupt railway car manufacturer CKD Dopravni systemy (CKD DS)
has continued as a going concern in 2000, Access Czech Republic
Business Bulletin noted last week. The firm's largest contract
calls for a supply of coaches for the Prague underground. CKD DS
has produced about 30 coaches under the contract so far. The
total contract calls for 110 coaches, 22 five-coach train sets,
to Dopravni podnik hlavniho mesta Prahy by 2002.

Several companies are interested in the assets of CKD DS: Siemens
(Germany), Skoda Plzen (Czech Republic) and Inekon (Czech
Republic). Siemens and Adtranz are involved in the Prague
underground production with CKD DS. During 2000 CKD DS will also
complete a supply of spare parts for tramway cars to Manila. CKD
DS has nearly 1,100 employees.


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

DMC: Yarn Division Insolvent
----------------------------
French textile group DMC will decide this month whether it will
close or modernize its yarn branch, La Tribune & World Reporter
noted last week. The decision will only have a limited impact on
the company's employees, as the yarn branch employs 50 out of a
company total of 708. Thirty of the yarn branch employees may
relocate within the company because of an agreement reducing the
work week that was signed at the beginning of November.


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

SAARSTAHL AG:  Faces Liquidation Proceedings
---------------------------------------------
Insolvency proceedings for Saarstahl AG, the German extruded
steel products company, may not be concluded by the end of this
year, Suddeutsche Zeitung & World Reporter noted last week.
Although the business is now seen as having a future, following
heavy investments, the question asked by the banks involved as to
who is to have the final say in the company remains unanswered.
It seems that early next year 60 percent of the capital will be
transferred to a trust. Currently, three trustees own 48.1
percent of the shares, the regional government owns 26.8 percent
and sheet steel manufacturer Dillinger Huttenwerke (DH) owns 25.1
percent.

Through the trust Saarstahl and DH can engage in cross-
participation without domination by either party. Saarstahl has
participated indirectly in DH through its 33.75 percent stake in
the holding Dillinger Hutte/Saarstahl AG (DHS), which holds 95
percent in DH. Regional government holds 15 percent in DHS.
French steel group Usinor holds 48.75 percent in DHS, but has
expressed willingness to sell and German steel producer
Salzgitter AG is interested in the stake. A purchase by
Salzgitter would require consent by the other investors,
Suddeutsche Zeitung & World Reporter said.


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

MINARDI: Formula One Team Faces Bankruptcy
------------------------------------------
Italian Formula One team Minardi faces financial problems. The
team has neither a sponsor nor a competitive engine for the
coming season. Agence France-Presse noted last week that majority
shareholder Gabriele Rumi thought he had found a solution when he
recently agreed to sell his interest in Minardi to Panamerican
Sports Network (PSN), an American cable TV network. Spaniard Marc
Gene is hoping to close a deal that will see him sign on as the
Williams' stable third string driver.


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

LATVIJAS KUGIECIBA: Shipping Company Scheduled for Privatization
----------------------------------------------------------------
Latvian Shipping Company (LASCO) Latvijas Kugnieciba is scheduled
to be privatized, with 68 percent of shares selling for cash,
said the director general of the Latvian Privatization Agency
(LPA). A public offering for privatization vouchers could sell 15
percent of LASCO's shares, 10 percent could be invested in
pension fund, up to 6 percent could go to the company's employees
and 1 percent could be transferred into reserves.

According to BNS & Euromoney reports this week, after
privatization the company will have to retain registration in
Latvia and will have to retain its previous name. It will also be
required to keep jobs in the ground units and on vessels, retain
the current operations profile, provide financial support to
Latvia's Maritime Academy and invest in the renovation of LASCO's
fleet. The audited financial report for LASCO's nine-month
operations will be sent to potential buyers as soon as it is
available.


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

LIETUVOS KURAS: Posts a Loss of 26 Million Litas
------------------------------------------------
BNS & Euromoney reports this week that the investment plans of
Dutch companies Kopcke International and D.C.Berkel, the owners
of fuel retailer Lietuvos Kuras (Lithuanian Fuel), are falling
apart. In 1999 a 67.76 percent stake in Lietuvos Kuras was sold
to the Dutch companies. LUKoil Baltija, one of the main creditors
of the company, as well as the Ministry of Finance, took over
Lietuvos Kuras's liabilities to foreign finance institutions
worth several millions litas. Lithuanian Fuel has to pay back the
state by 2015. Lietuvos Kuras, which has huge liabilities to the
state, posted a loss of about 26 million litas in the first nine
months of 2000. Last year's audited losses of Lietuvos Kuras
amounted to 38 million litas.


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

FOKKER: Annual Accounts Mistakes
--------------------------------
Het Financieele Dagblad & World Reporter noted last week that
Fokker, the liquidated Dutch aircraft company for years has
reportedly been giving inaccurate accounts of its finances. A
report commissioned by VEB, the Dutch association of securities
holders, states that financial reports were in breach of
accountants' regulations. VEB will use the report to claim part
of the Fokker assets for duped investors. VEB states that if
annual accounts were drawn up in the right way, investors would
have had to pay much less for Fokker shares. VEB chairman Peter
de Vries is also considering to holding international accountancy
company KPMG responsible, as it has given its approval to
Fokker's financial reports for years. VEB has not decided on the
matter yet.


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

KVAERNER ENERGY:  Goes for Closure
----------------------------------
Kvaerner Energy in Clydebank will close with a loss of 200 jobs
after the collapse of a buy-out plan, BBC News reports this week.
The Anglo-Norwegian engineering and construction group said that
it had decided to close the manufacturing plant, which makes gas
turbine equipment for power stations. A sale was agreed in August
with Newco, led by former Kvaerner Energy marketing director Bob
Helburn. Union officials were disappointed at the failure.

A Kvaerner spokesman said: "Despite protracted negotiations with
Newco since June of this year, it has not been possible for them
to meet the terms of a potential agreement to acquire the
Clydebank manufacturing facility. Kvaerner's flexible approach,
its willingness to agree to a number of time extensions, a
commitment to making exhaustive efforts to secure a deal and to
preserve jobs was also tangibly underwritten by the group."

Kvaerner Energy is part of the Kvaerner Thermal Power Group,
which includes operations in Norway and the Middle East.


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

HUTA KATOWICE:  Faces Bankruptcy
---------------------------------
Polish News Bulletin noted last week that an Italian supplier of
steel machines does not intend to cancel its investment plans
towards HK ZOWB, a company to be spun-off from the Huta Katowice
(HK) steelworks. Italian supplier Danieli has reaffirmed its
commitment to HK's privatization following the withdrawal of
Anglo-Dutch concern Corus.

A Danieli official expressed hope for the successful conclusion
of negotiations between HK and the Treasury and Economics
Ministries regarding HK's capitalization as well as with banks,
regarding a continuation of a ZL400m loan contract signed two
years ago. HK officials are due to meet with banks. If the latter
decide to withhold the short-term loans needed to maintain HK's
liquidity, the steelworks may be declared bankrupt.


HK STAL:  Brazilian Steel Group to Buy 80 Percent
-------------------------------------------------
Companhia Vale do Rio Doce (CVRD) of Brazil declared it would buy
up to 80 percent in the Huta Katowice steelworks' dependent
company, HK Stal. The investment may amount to some $200 million,
Polish News Bulletin reported last week. It would be a great
opportunity for the steel works, admitted HK president Andrzej
Szydlo, but for the moment only the initial letter of intent has
been signed between the plant and the Brazilian investor. The
steelworks discontinued negotiations with the Anglo-Dutch Corus
steel group over a planned joint venture, as a result of which
analysts said HK was on the verge of bankruptcy.


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

MEDIA-MOST: Collapse of Debt Deal Threatens Russian Media Firm
--------------------------------------------------------------
The Independent News reports this week that the war between the
Kremlin and Media-Most, Russia's biggest independent media
company, increased when state-controlled gas monopoly abruptly
backed out of a deal that would have cleared Media Most's debts.
At stake is the future of Media-Most, owner of the NTV television
station and other media outlets, all critical of the government.

Prosecutors issued a warrant earlier in the week for the arrest
of Vladimir Gusinsky, the head of the media group, who left
Russia in July after spending three days in prison. Gazprom, the
natural gas monopoly that is Media-Most's largest creditor,
withdrew its signature from an agreement signed last week. Under
the deal Mr Gusinsky would have relinquished control of parts of
his media empire, in which Gazprom would then have become the
main shareholder.

Media-Most said the cancellation of the deal came as a complete
surprise. It claimed that the agreement, reached by teams of
lawyers on both sides, had been repudiated at the last minute
because of pressure from the prosecutors. Mr Gusinsky, who is
reportedly in either Britain or Spain, is refusing to return to
Russia to answer questions on fraud charges.

The Independent noted that the threat to Media-Most's
independence stems from its debts, including $473m (pounds 329m)
owed to Gazprom, which was guarantor for two loans made by
Credit-Suisse First Boston. Under the deal agreed at the weekend
46 percent of the company's shares would have gone to Gazprom and
another 19 percent would have been sold to foreign investors.


=========
S P A I N
=========

HEALTHLAND (SPAIN):  Esporta Buys Leisure Group for 1.4 Million
---------------------------------------------------------------
Esporta PLC announced its expansion into Europe with the
acquisition of Healthland (Spain) SA from Healthland Europe Ltd
for 1.4 mln stg cash plus around 700,000 stg debt to trade
creditors, AFX (UK) reported last week. Esporta has also taken
over, at nil premium, the leasehold interests of the Healthland
group in respect of two new clubs under development in France and
Sweden. Healthland (Spain) has a 42,000 square feet health &
fitness club, Las Rozas, which opened at the Heron City leisure
complex in Madrid in December 1999 and has 9,500 members.

The Healthland (Spain) assets to be acquired by Esporta were
booked at 1.7 mln stg at Sept. 30. In the first nine months of
2000, the company had operating losses of around 400,000 stg,
reflecting the performance of the Las Rozas club in its early
months of trading. The Swedish and French clubs are located in
Heron City leisure complexes in Stockholm and Lille and are due
to open in 2001. In the UK, Esporta has secured the lease of the
47,000 square feet Healthland unit in Romford for a nil premium.
Esporta acquired the Healthland Milton Keynes club in October for
2.5 mln stg. All of the clubs will be branded as Esporta.


MECAPENA EQUIPOS: Goes for Temporary Receivership
--------------------------------------------------
Spanish capital goods group Mecanica de la Pena has requested
that its subsidiary Mecapena Equipos be allowed to remain in
temporary receivership after a court stopped the suspension of
payments process due to lack of sufficient consensus between the
company's creditors. Mecapena has been in temporary receivership
for two years with debts of almost 21 million euros, Expansion
News noted last week.


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

GRASSHOPPER ZURICH:  Records a Loss of 21.9 Million Swiss Francs
----------------------------------------------------------------
Cash-strapped Swiss football giants Grasshopper Zurich plans to
take itself off the Swiss stock exchange from next April, sources
at the club said. The company recorded losses of 21.9 million
Swiss francs (12.8 million dollars) for the year 1999 to 2000
ending in June, Agence France-Presse reported last week. The
club's management said the poor results are down to fewer people
coming to watch matches combined with spiraling prices paid for
players.

Financial director Jakob Huber, the man behind the drastic plan
of action, said the club's current debts came to 20.4 million
Swiss francs. The club's shares fell by 35 percent on the Swiss
stock exchange to 12.9 Swiss francs. The plan will be put forward
to a shareholders' annual general meeting on December 18.


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

AXA EQUITY: Liquidation Proceedings
------------------------------------
Company Name: AXA Equity & Law Home Loans No 2 Ltd
Company No: 2294774
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


AXA EQUITY: Liquidation Proceedings
------------------------------------
Company Name: AXA Equity & Law Pep Managers Ltd
Company No: 2560269
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


AQUIS LTD: Liquidation Proceedings
-----------------------------------
Company Name: Aquis (Embassy House) Ltd
Company No: 817013
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


AQUIS HOTELS: Liquidation Proceedings
--------------------------------------
Company Name: Aquis Hotels Ltd
Company No: 1458011
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


ASSOCIATES BUSINESS: Liquidation Proceedings
---------------------------------------------
Company Name: Associates Business Centres Ltd
Company No: 2272118
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


BRITISH TELECOM: Goes for Reorganization
----------------------------------------
British Telecom has brought in the City's best-known firm of spin
doctors in an attempt to restore its battered image. Brunswick,
the public relations company run by Alan Parker, has been hired
to provide "background project advice" to Sir Peter Bonfield,
BT's chief executive. Brunswick is well-versed in dealing with
corporations and organizations in crisis, The Independent News
reported last week.

Marks & Spencer called on its services when a boardroom battle
broke out over who would succeed Sir Richard Greenbury as
chairman. Mr Parker, the son of the former British Rail chairman
Sir Peter Parker, advised BT on the presentation of its radical
restructuring plan unveiled earlier this month. The
reorganization will see BT break into six separate businesses,
four of which will be floated on the stock market.


CRESTINA LTD: Liquidation Proceedings
--------------------------------------
Company Name: Crestina Ltd
Company No: 750905
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


DENPLAN GROUP: Liquidation Proceedings
---------------------------------------
Company Name: Denplan Group Plc
Company No: 2101738
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


DENPLAN PROFESSIONAL: Liquidation Proceedings
----------------------------------------------
Company Name: Denplan Professional Ltd
Company No: 2933123
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


EQUITY & LAW: Liquidation Proceedings
--------------------------------------
Company Name: Equity & Law Ltd
Company No: 2294602
Com. Business: Dormant
Appointed on: 13/10/00
Type: Members
Appointed by: Members
Liquidators: Colin I Vickers IPno: 8953 John W Powell 7888
Firm Name: Levy Gee
Address: Southfield House 11 Liverpool Gardens
City Postcode: Worthing BN11 1RY


MILLENNIUM DOME: Dome Deal in Doubt
-----------------------------------
The sale of the Millennium Dome hangs as the bidders stress their
deadline remains, with no agreement in place. The company Legacy
has given the government until Friday Nov. 17 to let them know if
they were going to get preferred bidder status. Legacy had hoped
a meeting of the relevant ministers would clarify their position,
but no agreement appears to have been reached.

Following the meeting, a spokesman for Legacy said: "The deadline
is still in place and we will clarify the situation on Friday
morning". However, the Deputy Prime Minister John Prescott
declined to be bound by the deadline, BBC News reported last
week.

Legacy wants to turn the Dome into a hi-tech business park,
creating 14,000 jobs in three years. Ministers could decide to
reject the Legacy bid or defer a decision. Legacy has been given
government reassurances that there have been no negotiations with
rival bidders since the Dome Europe consortium pulled out in
September. Legacy is headed up by Labour-supporting City property
entrepreneur Robert Bourne, and its principal financial backer is
Irish property investment company Treasury Holdings. If they
withdraw, the chief executive of the New Millennium Experience
Company (NMEC), which currently runs the Dome, Pierre-Yves
Gerbeau, has offered to buy it himself with commercial backing. A
rival group wants to turn the Dome into a concert venue.


PNC TELE.COM:  Posts Interim Pre-Tax Loss of 1.3 Million Pounds
---------------------------------------------------------------
The Times noted that PNC Tele.com (telecom) reported an interim
pre-tax loss of 1.3 million pounds. There is no dividend.


RECOGNITION SYSTEMS: Posts Losses Rise to 4.7 Million Pounds
------------------------------------------------------------
Recognition Systems, the developer and distributor of marketing
software, announced its pre-tax losses increased to 4.7 million
pounds from 1.6 million pounds in the year to the end of May as
the company continued to invest in management, sales and delivery
capabilities. The Times reported last week that turnover rose to
8.6 million pounds from 2.3 million pounds for the same period
the year before, while loss per share increased to 5.4p from last
year's 2.3p. The company did not recommend payment of a dividend.

Recognition, whose customers include Centrica, Salomon Smith
Barney, General Motors Corporation and American Express, also
announced the appointment of Richard Livesey-Haworth as its non-
executive chairman.


TELEWEST:  Posts Nine Month Pre-Tax Loss of 475.3 Million Pounds
----------------------------------------------------------------
Telewest (telecoms) reported nine-month pre-tax losses of 475.3
million pounds. There is no dividend, The Times noted last week.



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