---

     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, November 30, 2000, Vol. 1, No. 145


                         Headlines


A U S T R I A

LAUDA AIR:  Austrian Air Still in Talks to Acquire Stake


B E L G I U M

LERNOUT & HAUSPIE: Three Directors to Quit
LERNOUT & HAUSPIE:  Affiliate Faces Law Suit


C Z E C H   R E P U B L I C

UNION GROUP: Investment Company CSFB to Acquire Majority Stake
KOMERCNI BANKA: Govt to Sell-Off Country's Third Largest Bank


G E R M A N Y

ISION INTERNET:  Reports a Nine Month EBITDA Loss
GENESCAN EUROPE:  Posts Nine Month Loss of 5.33 Million Euros


I R E L A N D

MANOR MILLS: Up for Voluntary Liquidation
SPIRIT: Closes its Residential Operations, Loses 400 Jobs
ULSTER BANK:  Goes for Restructuring, Admits to Job Cuts


U K R A I N E

CHERNOBYL: Nuclear Power Station to Shut Down, to Lose 9,000 Jobs


U N I T E D   K I N G D O M

ALTERPLACE LTD: Liquidation Proceedings
BINGSWOOD INDUSTRIAL: Liquidation Proceedings
BOTTOM BOAT: Liquidation Proceedings
CK INVESTMENTS: Liquidation Proceedings
CONTINENTAL PRESSING: Liquidation Proceedings

CORNICHE PROPERTIES: Liquidation Proceedings
CRADFIELD LTD: Liquidation Proceedings
EIDOS: Reports First Half Loss of STG82.3 Million
GROVE FARM: Liquidation Proceedings
HARMON CFEM:  Goes to Voluntary Liquidation

HUNTLEY MALET: DTI Petition to Wind Up
ICL: Ailing Services Plans to Restructure
KENWOOD APPLIANCES:  Reports First-Half Loss of 2.2 Million
RUTLAND ENGINEERS: DTI Petition to Wind Up
TRADEPOINT: Reports First Half Loss of 7.63 Million Pounds


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

LAUDA AIR:  Austrian Air Still in Talks to Acquire Stake
--------------------------------------------------------
Austrian Airlines AG said on Monday it is in negotiations with
Deutsche Lufthansa AG regarding the latter's 11.1 percent stake
in Lauda Air. "We expect a decision by the end of this year,"
Austrian Airlines spokesman Johann Davoras said. Handelsblatt
reported this week that Lufthansa holds a total of 20 percent in
Lauda Air, but Lauda founder and former chief executive Niki
Lauda has the right to first refusal on 9 percent of that stake.
Austrian Airlines has said it plans to take over 100 percent of
Lauda Air. The Austrian flagship carrier already holds a 35.9
percent stake and has an option for another 30 percent held by
Niki Lauda.


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

LERNOUT & HAUSPIE: Three Directors to Quit
------------------------------------------
Silicon.com reported last week that three directors have stepped
down from speech recognition company Lernout & Hauspie. L&H has
been under siege since August under continuing revelations of
financial and accounting irregularities stemming from its South
Korea operations. The company's shares have been suspended by
both the Easdaq and Nasdaq.

Last week the company announced that founder Pol Hauspie had quit
the board. Also taking a dive are former managing director Nico
Willaert and former chief executive Gaston Bastiaens. All will
remain as shareholders only.

Founder Jo Lernout, who was "not connected with finances"
according to the company, will remain as vice chairman of the
board, executive committee member and chairman of the technology
advisory committee. The two founders own about 30 percent of
L&H's stock and control the appointments of nine of the board's
17 members. Analysts are worried that the company will have
difficulty paying its debt, including a $200m short-term loan due
for repayment in March, Silicon.com noted.


LERNOUT & HAUSPIE:  Affiliate Faces Law Suit
--------------------------------------------
A complaint has been filed in the United States District Court
for the Southern District of New York by Talk Technology, Inc.,
against Lernout & Hauspie Speech Products N.V. The complaint
alleges that L&H and its American affiliate have been engaging in
unfair and deceptive trade practices, tortuous interference with
Talk Technology's prospective economic advantage and contractual
relations, trade libel, product disparagement and false
advertising. Federal judge Harold Baer has issued an Order
requiring L&H to show cause.

According to a Reuters news report, on November 9 trading in the
shares of L&H was suspended indefinitely by the Nasdaq in this
country and by Easdaq in Europe, when L&H admitted to
"irregularities" in its financial statements for 1998, 1999 and
the first half of 2000. The report states that company shares
have fallen more than 90 percent.


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

UNION GROUP: Investment Company CSFB to Acquire Majority Stake
--------------------------------------------------------------
CTK & Euromoney reported yesterday that Credit Suisse First
Boston would probably acquire a majority stake in Ostrava-based
Union Group, following a decision of Union Group's board of
directors. Union Group's key companies are Union banka and
Vojensky otevreny penzijni fond pension fund. The board's
decision could be changed only if the Austrian investment bank
Gutman makes a better offer by Dec 1.

Raiffeisenbank and BNP Paribas showed interest in Union Group but
wanted the government to provide guarantees or assistance in the
form of investment incentives. The government recently refused to
take part in the transaction. Union Group last year sustained an
audited loss of Kc153.331m, compared to a loss of Kc896.52m in
1998.


KOMERCNI BANKA: Govt to Sell-Off Country's Third Largest Bank
-------------------------------------------------------------
The Czech government took another step toward selling off the
country's third largest bank, Komercni Banka, approving four
bidders in the privatization. Libor Roucek government spokesman
said that the four bidders for a 60 percent state stake are
Italian Unicredito, German Hypovereinsbank and French banks
Societe Generale and Credit Agricole. "The government agreed to
continue in negotiations with four bidders," Roucek told Reuters.

Reuters reported this week that Komercni had assets of 390.4
billion crowns at the end of September and a nine month loss of
0.97 billion, following a capital hike and repeated government
purchase of poor assets to keep the bank afloat. The bank
suffered heavy losses in recent years.


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

ISION INTERNET:  Reports a Nine Month EBITDA Loss
-------------------------------------------------
Ision Internet AG, a German e-commerce services firm, reported
nine-month sales rose 64 percent to 66.74 million euros ($56.23
million), but its operating loss deepened. Earnings before
interest, tax, depreciation and amortization (EBITDA) at a loss
of 11.16 million euros for the nine months to September 30
against a loss of 7.49 million last year, Reuters reported
yesterday.


GENESCAN EUROPE:  Posts Nine Month Loss of 5.33 Million Euros
-------------------------------------------------------------
Biotechnology group Genescan Europe AG's nine-month loss before
interest, taxes, and depreciation widened to 5.33 million euros
from a 1.4 million euros loss last year, owing to expansion
costs. Over the same period, sales rose to 7.68 million euros
from 3.04 million euros, Handelsblatt reported yesterday.


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

MANOR MILLS: Up for Voluntary Liquidation
-----------------------------------------
Newswire reports this week that a grain merchant, Edward Kavanagh
(Maynooth) Manor Mills, which has a liabilities of more than 20
million pounds (euro25.4 million), has decided for liquidation.
It is expected a liquidator will be appointed on Friday. A
provisional liquidator, Mr David Hughes, was appointed last month
by the court on the petition of Quinns of Baltinglass, Co
Wicklow, a supplier of the company which claims to be owed
966,000 pounds. The application had been supported by 30 other
creditors.

The company had to hold meetings which were likely to end with a
voluntary liquidation and with the appointment of Mr Hughes as
liquidator. At a previous hearing it was claimed Kavanagh's was
hopelessly insolvent with liabilities of more than 20 million
pounds. It had assets of 14 million pounds and admitted debts of
5.5 million pounds. The previous court hearing had been informed
the company traded profitably until recent years but had suffered
losses in the past year.


SPIRIT: Closes its Residential Operations, Loses 400 Jobs
---------------------------------------------------------
Spirit, the European phone company headquartered in Dublin, is
closing its residential operations in nine countries, resulting
in 400 job losses. Irish and UK subsidiaries will be unaffected.
The company will concentrate on selling space on its fibre
network. It hopes to recruit 350 workers for the wholesale
operation, Irish Independent reports this week.


ULSTER BANK:  Goes for Restructuring, Admits to Job Cuts
--------------------------------------------------------
Irish Independent reports this week that Ulster Bank chief
executive Martin Wilson conceded there may be compulsory
redundancies as the bank introduces its four-year restructuring
plan. Union sources claim the new plan will effectively strip
away a layer of staff and offer jobs on a lower salary structure
in return for accepting a bonus or generous package if they
leave. Mr Wilson said some 300 workers had agreed to leave the
financial institution through voluntary redundancy or early
retirement.

Mr Wilson said: "I am saying compulsory redundancies is only
something I would consider as a last option." He added the plan
has been approved by the board of the Royal Bank of Scotland,
which owns Ulster Bank. But the Irish Bank Officials'
Association's assistant general secretary Larry Broderick claimed
that the changes would result in 200 to 500 job losses. He said:
"The bank wants to cut 50pc of people in branches. There are
definitely going to be job losses." The bank staff are preparing
for industrial action if pay cuts are imposed over the coming
months.

The new scheme involves staff receiving a lump sum equivalent to
three years' salary cut. The cuts impact on all retail banking
staff from area manager level downwards. At the top of the pay
scales, the minimum reduction proposed will be almost ?3,500,
while at the upper end, cuts will be over ?10,000 per annum. A
customer adviser, currently earning between ?22,560 to ?34,868
per year would have their pay cut to between ?13,100 to ?24,000,
Irish Independent noted.


=============
U K R A I N E
=============

CHERNOBYL: Nuclear Power Station to Shut Down, to Lose 9,000 Jobs
-----------------------------------------------------------------
Power line failures forced the shutdown of the Chernobyl nuclear
power station on Monday with doubts over whether engineers would
restart it less than three weeks before its final closure,
Reuters reported this week. A top atomic energy official in the
Ukrainian capital of Kiev said he was not sure there was any
point in firing up the plant, the site of the world's worst civil
nuclear disaster in 1986. But Chernobyl's chief engineer rattled
at the prospect of the loss of 9,000 jobs, telling Reuters the
station would be ready to go back on stream within days.

A cold snap brought havoc to Ukraine's creaking national power
grid, and millions were left without electricity when power lines
failed across the country. A reactor at the South Ukraine power
station was also forced out of action after technicians found a
leak in a steam generator, officials said.

Chernobyl chief engineer Yuri Neretin said a sudden fall in
demand from the national grid early Monday caused the safety
system of the plant's last functioning reactor to shut it down.
"If there's nowhere for our electricity to go, the reactor
automatically shuts itself down," he said in an interview in an
office inside the plant. This was because the reactor could not
adapt quickly to sudden changes in demand, he said.


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

ALTERPLACE LTD: Liquidation Proceedings
----------------------------------------
Company Name: Alterplace Ltd
Company No: 1816415
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


BINGSWOOD INDUSTRIAL: Liquidation Proceedings
----------------------------------------------
Company Name: Bingswood Industrial Estates Ltd
Company No: 851149
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


BOTTOM BOAT: Liquidation Proceedings
-------------------------------------
Company Name: Bottom Boat Sidings Ltd
Company No: 1721561
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


CK INVESTMENTS: Liquidation Proceedings
----------------------------------------
Company Name: CK Investments Ltd
Company No: SC74117
Com. Business: Investment Co
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Thomas R Campbell IPno: 5122 Keith V Anderson 6885
Firm Name: T Hunter Thomson & Co
Address: 28 Alva Street
City Postcode: Edinburgh EH2 4QF


CONTINENTAL PRESSING: Liquidation Proceedings
----------------------------------------------
Company Name: Continental Pressing Technic Ltd
Company No: 2417659
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


CORNICHE PROPERTIES: Liquidation Proceedings
---------------------------------------------
Company Name: Corniche Properties Ltd
Company No: 1873943
Com. Business: Dormant (Property Co)
Appointed on: 23/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Michael Ioannou IPno: 6895
Firm Name: Gregory Michaels & Co
Address: 6 Southwick Mews Paddington
City Postcode: London W2 1JG


CRADFIELD LTD: Liquidation Proceedings
---------------------------------------
Company Name: Cradfield Ltd
Company No: 2290380
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


EIDOS: Reports First Half Loss of STG82.3 Million
------------------------------------------------
UK-based computer games publisher Eidos, the inventor of Tomb
Raider heroine Lara Croft, has reported first half losses of
STG82.3 million, compared to a loss of STG37.9 million in 1999,
Electricnews.net reported yesterday. It blamed the massive
increase on difficult trading conditions and the legal expenses
incurred in abortive takeover talks with French software group
Infogrames Entertainment. Eidos, which makes a computer game
version of the hit TV quiz show "Who Wants To Be A Millionaire?",
said it had extended its contract with Celador, the company
behind the program. The game has topped the charts in the UK.

Eidos' pre-tax losses for the six months to September 30 included
one-off costs of STG54.1 million, it said. Further one-off costs
were incurred at the Express.com Internet business, in which
Eidos bought a 12.6 percent stake last year. Legal and
professional fees associated with the takeover talks last summer
cost it a further STG900,000, Electricnews.net noted.


GROVE FARM: Liquidation Proceedings
------------------------------------
Company Name: Grove Farm (Kirklevington) Ltd
Company No: 1145818
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: John B Taylor IPno: 2766
Firm Name: John B Taylor & Co
Address: 8 High Street Yarm
City Postcode: Stockton-on-Tees TS15 9AE


HARMON CFEM:  Goes to Voluntary Liquidation
-------------------------------------------
The Times of London noted last week that the Judge Humphrey
Lloyd, QC, so stated in the Technology and Construction Court on
June 29, 2000, when he granted an application of Harmon CFEM
Facade (UK) Ltd, in voluntary liquidation, for an interim payment
from the Corporate Officer of the House of Commons. His Lordship
said that having regard to the overriding objective of the Civil
Procedure Rules, depriving a party of money which one party had
but which was rightfully the other's did not place the latter on
an equal footing with the former.

Nevertheless, it might be equally wrong to order an interim
payment to a party who might not be able to repay it if an
adjustment were required under rule 25.8, The Times noted. The
fact that any sum paid might be irrecoverable was irrelevant.
However, care would be taken not to over-compensate the claimant.
If the court considered that the claimant would probably recover
a part, then a lower proportion would be ordered. However, that
proportion might also reflect the possibility to be
irrecoverable.


HUNTLEY MALET: DTI Petition to Wind Up
--------------------------------------
The Secretary of State for Trade and Industry has presented
petitions in the High Court to wind up in the public interest
Huntley Malet Group following investigations by Companies
Investigations Branch of the DTI under section 447 of the
Companies Act 1985 (as amended), M2 Presswire reports this week.
On the application of the Secretary of State the Court appointed
the Official Receiver as provisional liquidator of company
pending the hearing of the petitions on Wednesday 17 January 2001
at 10.30 am. Huntley Malet Group Limited is a non trading holding
company which, since October 1998, has acquired seven engineering
subsidiaries, two of which have subsequently been wound up.
Rutland Engineers Limited was acquired by the Group in March
2000.

NOTES :
1. The registered office of Huntley Malet Group Limited is Fryern
House, 125 Winchester Road, Chandlers Ford, Hampshire and the
company trades from Primrose Cottage, Winsor Road, Winsor, Nr
Cadnam, Southampton, SO40 2HN.

2. The petitions were presented under Section 124A of the
Insolvency Act 1986.

3. All public enquiries concerning the company should be made to:
THE OFFICIAL RECEIVER Public Interest Unit 21 Bloomsbury Street
London WC1B 3SS.


ICL: Ailing Services Plans to Restructure
-----------------------------------------
ZDNET UK reported last week that the ailing services giant ICL
will this week lay out plans to restructure its operations. After
a board meeting scheduled for 30 November, ICL will detail cost-
cutting measures. Since the August cancellation of a flotation
and the departure of its previous chief executive, Keith Todd,
ICL has axed about 100 senior managers and 250 contractors.

ICL's parent, Fujitsu, recently embarked on a massive branding
campaign and said it aims to be the world's largest services
company. A renaming of the company to make the Fujitsu-ICL link
more explicit and a tighter bond with Fujitsu Siemens Computers
are being considered. Since Todd's departure, Fujitsu has been
taking more direct control. "Before, Fujitsu was at arm's length
but now it's much closer," a spokesman said. ICL is still seeking
a new chief executive to take over from acting chief executive
Richard Christou, ZDNET noted.


KENWOOD APPLIANCES:  Reports First-Half Loss of 2.2 Million
-----------------------------------------------------------
Kenwood Appliances has reported a pre-tax loss of 2.2 million
pounds for the half-year to the end of September compared to a
loss of 3.3 million pounds the same period last year, Ananova
noted last week. The bottom line includes exceptional items
totaling 2.6 million pounds which relate to the group
restructuring and include 1 million pounds made after the group
and its auditors identified a number of accounting issues
relating to the recording of stock.


RUTLAND ENGINEERS: DTI Petition to Wind Up
------------------------------------------
M2 Presswire reports this week that the Secretary of State for
Trade and Industry has presented petitions in the High Court to
wind up in the public interest, Rutland Engineers Limited,
following investigations by Companies Investigations Branch of
the DTI under section 447 of the Companies Act 1985 (as amended).
The Court appointed the Official Receiver as provisional
liquidator of the company pending the hearing of the petitions on
Wednesday 17 January 2001 at 10.30 am.

NOTES:
1. The registered office of Rutland Engineers Limited is Fryern
House and the company trades from factory premises at Brynberth
Industrial Estate, Rhyader, Powys, LD6 5EW.

2. The petitions were presented under Section 124A of the
Insolvency Act 1986.

3. All public enquiries concerning the company should be made to:
THE OFFICIAL RECEIVER Public Interest Unit 21 Bloomsbury Street
London WC1B 3SS.


TRADEPOINT: Reports First Half Loss of 7.63 Million Pounds
----------------------------------------------------------
Electronic stock exchange Tradepoint reported a 79 percent rise
in trading volumes, and increased losses, prior to its December
merger with the Swiss Stock Exchange. The fledgling rival to the
London Stock Exchange reported losses up to 7.63m pounds for the
first half-year, compared to 4.29m pounds for the same period
last year, Silicon.com noted last week. Turnover has tripled to
1.64m pounds. The company spent 1.93m pounds on a new platform.
The two recently merged exchanges plan to launch a pan-European
exchange called virt-x in March.



S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA.  Lexy Mueller,
Mercy Villacastin and Cristina Pernites Editors.

Copyright 2000.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing  and photocopying) is strictly prohibited without
prior written permission of the publishers.  

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is $575 per half-year, delivered
via e-mail.  Additional e-mail subscriptions for members of the
same firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 301/951-6400.


             * * * End of Transmission * * *