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                        E U R O P E

         Friday, December 8, 2000, Vol. 1, No. 151


                        Headlines

B E L G I U M

LERNOUT & HAUSPIE: Minorities Want to Limit Board Powers
LERNOUT & HAUSPIE:  Court to Decide Bankruptcy Case


C Z E C H   R E P U B L I C

PYRR: CSOB Lost Kc0.5bn When Selling Textile Companies


F R A N C E

GIAT INDUSTRIES: Faces Financial Crisis, Seeks Cash


G E R M A N Y

ADTRANZ: European Commission to Probe Adtranz Sell-Off
EM.TV AG: Ailing Media Company Reports 2.2 Billion Marks in Debt
MICROMOTORS GROSCHOPP:  Up for Closure
HIT-PVM GMBH: HIT AG Acquires Company Through Management Buy-Out


H U N G A R Y

SZEGED CANNING: To Close Canning Factory


I R E L A N D

MOTOROLA: Goes for Restructuring, Axes 750 Jobs
XEROX (IRELAND): On the Verge of Bankruptcy


P O L A N D

GDANSK OIL: Refinery Goes to Privatization; 13 Interested Bidders


U K R A I N E

CHERNOBYL:  Ukraine's Kuchma accuses West of balking on cash


U N I T E D   K I N G D O M

ADFICOS INVESTMENTS: Liquidation Proceedings
BRITISH AIRWAYS: To Cut Long-Haul Flights in Gatwick Restructure
CAVENDISH BUILDERS: Liquidation Proceedings
COLEMAN BUILDING: Liquidation Proceedings
CORUS: Workers Consider Strikes

COTSWOLD TELECOMMUNICATIONS: Liquidation Proceedings
EQUITABLE LIFE: Prudential Life as the Only Potential Bidder
FYFFES PLC: To Close Two Geest Ripening Centres In UK
GLAZING TECHNO: Liquidation Proceedings
GLAZING TECHNOLOGY: Liquidation Proceedings

HILLHEAD FILTRATION: Liquidation Proceedings
IBP MEDIA: Liquidation Proceedings
ICL:  More Jobs go to Cut Losses
LOOK WELL: Liquidation Proceedings
MEDIA CONTENT: Reports First-Half Pre-Tax Loss

PEGRA LTD: Liquidation Proceedings


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

LERNOUT & HAUSPIE: Minorities Want to Limit Board Powers
--------------------------------------------------------
Deminor, which is representing Lernout & Hauspie minority shareholders,
said it wants to limit the powers of L&H's board of directors in any
creditor protection petition granted by the courts, AFX reports this week.
Deminor has filed a request with the court in this week's hearing asking
that any court administrator is given the power to supervise all
significant decisions over L&H management and assets. A Deminor spokesman
said: "For all decisions regarding the sale, transfer or pledging of
assets, the court should impose the prior approval by the administrator
appointed by the court".

On a separate series of 70 questions put to L&H directors, Deminor said it
is delaying until Dec. 11 the threat of legal action against L&H over
failure to answer these questions. L&H CEO John Duerden has written to
Deminor saying the company does not have the resources to answer all the
questions and that some will be dealt with via the restatement of the
accounts, it said. Deminor has been contacted by 15,000 L&H shareholders,
though only 9,816 have so far been asked to give it power of attorney, AFX
noted.


LERNOUT & HAUSPIE:  Court to Decide Bankruptcy Case
---------------------------------------------------
A Belgian judge is to decide toay whether to grant speech technology
company Lernout & Hauspie protection against creditors, a court official
said. Judge Michel Handschoewerker at a commercial court in the western
Belgian town of Ieper heard opening arguments in the company's request for
protection from creditors and shareholders seeking damages, the official
said.

L&H, whose financial statements are being investigated by U.S. and Belgian
regulators, last week said it would try to avoid selling parts of the
company despite having received expressions of interest from other
companies. Reuters reports this week that L&H shares have been suspended
from trade on the U.S. Nasdaq and pan-European Easdaq since November 9
after losing most of their value.


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

PYRR: CSOB Lost Kc0.5bn When Selling Textile Companies
------------------------------------------------------
Ceskoslovenska obchodni banka (CSOB) lost at least Kc0.5 billion when it
refused to swap a Kc1 billion debt of Pyrr company for equity at the end of
summer, Daniel Bezouska, the board chairman of Richmond Services, CTK &
Euromoney reports this week. Richmond was Pyrr's last owner, and its task
was to map out the situation at textile companies Veba, Slezan, Jitex,
Perla and Textilana.

Subsequently, Pyrr's shares in the companies, amounting to 41-49 per cent
and held by CSOB as collateral for a Kc1.3 billion loan, were to be sold to
a strategic foreign partner. CSOB could have obtained Kc0.5 billion more
than when selling the minority stakes. Pyrr, formerly controlled by IPB
bank, bought the stakes in the textile companies from trading company
Centrotex, which went under last year.

Pyrr has changed hands twice since IPB was put under forced administration
and sold to CSOB in June this year. On September 1, Richmond bought Pyrr
from Bullfinch, and on November 15, the company was sold to Britain's
Medecso Limited.


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

GIAT INDUSTRIES: Faces Financial Crisis, Seeks Cash
-----------------------------------------------------
Giat Industries, the French state-owned defense company, is likely to seek
a cash injection from the government next year following a full-year loss
that could near FFr1bn ($135.7m), Financial Times reports this week.
Chairman Jacques Loppion said the request for cash would come around May
and estimated that the company would need between FFr1.4bn and FFr2bn. Mr
Loppion said that Giat was paying the price for being a public company as
it cannot cut costs as fast as privately-held rivals.

Giat makes the Leclerc tank, which sells for between FFr50m and FFr70m a
vehicle. It is also bidding for large orders in Greece, Saudi Arabia and
Turkey. Mr Loppion admitted Giat's future could hinge on winning at least
one out of the three foreign contracts. Since 1994, Giat has halved its
workforce to about 8,000 people and closed factories in an effort to return
to profit.


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

ADTRANZ: European Commission to Probe Adtranz Sell-Off
------------------------------------------------------
The European Commission is expected to open a full four-month antitrust
investigation into plans by Bombardier, the Canadian rail equipment
producer, to buy DaimlerChrysler's Adtranz division for E725m ($644m). The
Commission is concerned that the merged company will be the world's largest
supplier of rail equipment, overtaking the other two main producers by a
long way.
DaimlerChrysler, currently facing legal action in the U.S. from its
shareholders over its Chrysler operations, agreed to sell the Adtranz to
Bombardier as part of move to concentrate on its core automotive business,
Financial Times reports this week.

Financial Times noted that a four-month second stage probe usually ends
with the Commission extracting additional remedies from the companies as
the price of clearance. The European Union's antitrust regulator is keen to
preserve competition in markets where only a handful of competitors are
left and which run the risk of seeing too much power concentrated into the
hands of a dominant supplier. The Commission last month extended its
initial deadline for ruling on the acquisition to December 6 to consider
concessions.


EM.TV AG: Ailing Media Company Reports 2.2 Billion Marks in Debt
----------------------------------------------------------------
Deutsche Bank AG declined to comment on media reports that one of the
investment funds it manages had taken a big paper loss on a stake in ailing
German media company EM.TV AG, Reuters noted this week. Deutsche said the
fund, Deutsche European Partners IV LP, run by UK unit Morgan Grenfell
Private Equity, had obtained $450 million worth of EM.TV shares in March in
exchange for a 12.5 percent stake in SLEC, the holding company for Formula
One motor racing.

A Deutsche Bank spokesman said any losses at the fund would not hit
Deutsche's results, but would affect the investors in the fund. Deutsche
European Partners is held by institutional investors. "Deutsche Bank holds
no direct stake in EM.TV," the spokesman said. Media reports have put the
paper loss at between $275 and more than $400 million. The spokesman
declined to comment on whether the fund still holds all the EM.TV shares it
obtained in March or has since sold some of them.

EM.TV has so far failed to provide detailed information on the source of
its problems, but has said that it amassed debt of 2.2 billion marks after
a buying spree including Jim Henson Company, the producer of the Muppets,
and a 50 percent stake in SLEC. EM.TV bought the SLEC stake from the
Deutsche Bank fund and from U.S. investment company Hellman & Friedman,
which sold EM.TV 37.5 percent of SLEC. Under a deal announced, media group
Kirch has agreed to take a stake in EM.TV and buy half the 50 percent stake
in SLEC for $550 million.


MICROMOTORS GROSCHOPP:  Up for Closure
---------------------------------------
One hundred jobs have been lost in Galway through the sudden closure of the
Micromotors Groschopp engineering plant in the city, Doras reports this
week. Workers were told at a crisis meeting two days ago that the operation
was going into liquidation within hours.

The plant made fractional horsepower electric motors and had been in
operation at Mervue since 1969. Management at the German owned company said
it had lost market share because of intense competition from the Far East.
A SIPTU spokeswoman said workers had been extremely disappointed by the
short notice given to them of the closure.


HIT-PVM GMBH: HIT AG Acquires Company Through Management Buy-Out
----------------------------------------------------------------
HIT AG bought its daughter company HIT-PVM GmbH through a management
buyout. The sale is related to a debt restructuring that will indemnify
DM23 million of bank debt at HIT-PVM. In spite of HIT-PVM's accounting
loss, HIT said it stands by its mid-year prediction of a positive pretax
profit for 2000, Handelsblatt reports this week.


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

SZEGED CANNING: To Close Canning Factory
----------------------------------------
Limpex Rt closed Szeged Canning Factory Kft, which it owns, and registered
a Ft 9 billion mortgage on the real estate. It is also expected to close a
similar plant in Hatvan, central Hungary, Budapest Business Journal reports
this week. Limpex is a subsidiary of the Hungarian Development Bank Rt
(MFB).


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

MOTOROLA: Goes for Restructuring, Axes 750 Jobs
-----------------------------------------------
Telecoms giant Motorola announced it is axing 750 jobs, at the County
Dublin plant. However, another Swords-based company, Celestica, has stepped
into the breach, acquiring the Motorola manufacturing operation, saving
around 650 jobs. Doras noted this week that as part of a rationalization
program, Motorola has chosen to sell its two electronics manufacturing
facilities in Dublin and Iowa, US, to Celestica for E81m.

The Tanaiste and Minister for Enterprise, Trade & Employment, Mary Harney,
has expressed her disappointment at the job losses. "This is clearly a blow
for those employed in Motorola who will lose their jobs as a result of
announcement which I understand is part of a restructuring of the company's
global operation." However, the Tanaiste went on to say that she was
confident there was alternative employment in the electronics sector. "I am
pleased that Celestica have managed to complete their deal with Motorola so
quickly and efficiently with the result that 650 jobs in the Swords
operation can be guaranteed," she said. "Celestica will now employ more
than 1,000 in their Swords operation and I wish them well in the expansion
of their Dublin base."


XEROX (IRELAND): On the Verge of Bankruptcy
-------------------------------------------
Xerox, which employs 2,300 at its Dublin and Dundalk plants, is on the
verge of bankruptcy. Xerox, which has debts of $17bn, must raise as much as
$4bn from selling parts of its empire. Mismanagement and competition from
rival manufacturers such as Canon have seen its stock decline, Irish
Independent noted this week.

The company's stock market value has collapsed from nearly $20bn earlier
this year to $2.8bn this week. A Xerox spokeswoman refused to entertain
suggestions that the company might be forced to seek protection from
bankruptcy. "We are absolutely confident that the turnaround plan is on
track and that liquidity will continue to remain sufficient." The looming
cash crunch could lead to the closure of Xerox's main British factory in
Mitcheldean, Gloucestershire.


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

GDANSK OIL: Refinery Goes to Privatization; 13 Interested Bidders
-----------------------------------------------------------------
The number of bidders for the Gdansk Oil Refinery (RG) in northern Poland
has risen from 10 to 13, spokesman for the Nafta Polska (Polish Oil)
corporation Janusz Kwiatkowski told Polish Press Ag. Nafta Polska is in
charge of privatizing Poland's petroleum industry. The corporation owns 75
percent of the Gdansk Refinery.

RG CEO Wojciech Zurawik said in Gdansk that several offers to buy the
refinery were expected to come in by December 21. He said that both
industrial companies and financial organizations were among the bidders and
confirmed that no Russian companies were in the group. The current bid to
sell the Gdansk Refinery is the second attempt after the fiasco of a 1998
tender due to lack of interest on the part of investors, PPA noted.


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

CHERNOBYL:  Ukraine's Kuchma accuses West of balking on cash
------------------------------------------------------------
President Leonid Kuchma of Ukraine accused the West of holding back cash it
had promised to compensate for the final shutdown of the Chernobyl nuclear
power plant next week, Agence France-Presse noted this week. Kuchma said:
"It is sometimes difficult for us to understand the logic" of the Western
nations which balk on their promises." Under an accord signed with the G7
group of the world's more industrialized nations in 1995, Ukraine undertook
to shut down the plant, scene of the world's worst civilian nuclear
accident in 1986, in return for 2.3 billion dollars in international aid.
But Kiev has consistently complained about not receiving the promised
funds. "Our people have already paid too dearly for this accident," Kuchma
said.

Reactor three, the only one still in operation at Chernobyl, still provides
five percent of Ukraine's power needs, but it is due to be finally shut
down on December 15. Reactor number two was destroyed in a fire in 1991,
while number one was shut down in 1996. Agence France-Presse noted that the
planned closure of number three would deliver a severe blow to the
country's cash-strapped economy.


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

ADFICOS INVESTMENTS: Liquidation Proceedings
---------------------------------------------
Company Name: Adficos Investments Ltd
Company No: 3667214
Com. Business: Investment Co
Appointed on: 27/10/00
Type: Members
Appointed by: Members
Liquidators: Paul M Davis IPno: 7805
Firm Name: Begbies Traynor
Address: 6 Raymond Buildings Grays Inn
City Postcode: London WC1R 5BP


BRITISH AIRWAYS: To Cut Long-Haul Flights in Gatwick Restructure
----------------------------------------------------------------
British Airways announced the dismantling of its second hub at London
Gatwick airport, including the loss of 1,000 jobs, a large reduction in the
number of intercontinental destinations and the refocusing of its short-
haul operations towards the business market, Financial Times reports this
week. The shake-up, which will be implemented over the next two years, is
the second major step in the restructuring of the airline since Rod
Eddington took over as chief executive in May.

Mr Eddington signaled his intention to dismantle the Gatwick hub in
October, when he announced the first overt moves to tackle the carrier's
losses -- a 10 percent cut in capacity largely focused on Gatwick. He said
the changes would improve Gatwick's profitability by 100m pounds. Before
overheads BA lost 40m pounds at Gatwick in the last financial year.

The airline will remain Gatwick's biggest operator and plans to relinquish
few take-off and landing slots. The overhaul will see the 43 long-haul
destinations reduced to about 25 with the closure of some six unprofitable
routes and the transfer of about 10 destinations to Heathrow.

Wrights Investors Service noted that at the end of 2000, British Airways
Plc had negative working capital, as current liabilities were 3.29 billion
pounds while total current assets were only 2.59 billion pounds. The fact
that the company has negative working capital could indicate that the
company will have problems in expanding. As of March 2000, the company's
long term debt was 6.51 billion pounds and total liabilities were 10.18
billion pounds.


CAVENDISH BUILDERS: Liquidation Proceedings
--------------------------------------------
Company Name: Cavendish Builders Ltd
Company No: 3048288
Com. Business: Builders
Appointed on: 27/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Alan Simon IPno: 8635
Firm Name: Langley & Partners
Address: Langley House Park Road
City Postcode: London N2 8EX


COLEMAN BUILDING: Liquidation Proceedings
------------------------------------------
Company Name: Coleman Building Contractors Ltd
Company No: 3683102
Com. Business: Builders
Appointed on: 27/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Richard A Segal IPno: 2685
Firm Name: A Segal & Co
Address: Albert Chambers 221-223 Chingford Mount Road
City Postcode: London E4 8LP


CORUS: Workers Consider Strikes
-------------------------------
Employees of Corus, the Anglo-Dutch steel group, were considering strike
action after the company announced an imminent restructuring of its UK
business with likely mass redundancies, Financial Times reports yesterday.
Workers' meetings were taking place the day after Corus's joint chief
executives -- John Bryant and Fokko van Duyne -- were forced to resign
because of a failure to counter difficult market conditions.

The group formed by the merger of Hoogovens and British Steel, the former
state-owned company, last year has already announced 4,500 job losses, most
of which it had hoped to achieved voluntarily. But with thousands more job
losses expected within months, enforced redundancies look inevitable.

Corus plants at Teesside, north-east England, or Llanwern, in south Wales,
could be closed down next year, analysts have predicted. Corus also has two
giant strip steel plants in south Wales, each employing about 3,000.


COTSWOLD TELECOMMUNICATIONS: Liquidation Proceedings
-----------------------------------------------------
Company Name: Cotswold Telecommunications Ltd
Company No: 2101237
Appointed on: 27/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Martin A Shaw IPno: 6334 Rupert G Mullins 7258
Firm Name: BKR Haines Watts
Address: Sterling House Maple Court Maple Road
City Postcode: Barnsley S75 3DP


EQUITABLE LIFE: Prudential Life as the Only Potential Bidder
-------------------------------------------------------------
Equitable Life, the mutual life assurer has so far failed to find a buyer.
Prudential is left as the only known potential bidder for Equitable,
increasing the chance that it may not find a buyer, Financial Times reports
this week. Equitable put itself up for sale in the summer after losing a
test case over its controversial treatment of holders of guaranteed annuity
policies. A House of Lords ruling left the group with immediate liabilities
of 1.5bn pounds ($2.16bn), although analysts estimate the figure could be
much higher.

Financial Times reported that the extension of the original bid deadline
and the failure of Equitable to attract interest from buyers made it less
likely that the mutual would receive the necessary capital support to
restore its financial strength. Equitable's existing business could be run
off as a closed fund.


FYFFES PLC: To Close Two Geest Ripening Centres In UK
-----------------------------------------------------
Fyffes Plc, Europe's biggest fresh food distribution business, said that
job cuts would result from its decision to restructure the UK operations of
its Geest Bananas business. A spokeswoman said there would be 200 job
losses in all: "The proposals involve the closure of two Geest UK ripening
centres and a reduction in the number of employees at the Geest head
office." Fyffes said it would also close a Fyffes ripening centre in the
UK, Reuters noted this week.


GLAZING TECHNO: Liquidation Proceedings
----------------------------------------
Company Name: Glazing Techno Indust (Holdings) Ltd
Company No: 1908819
Com. Business: Holding Co
Appointed on: 27/10/00
Type: Members
Appointed by: Members
Liquidators: Graham G King IPno: 2223
Firm Name: Kings
Address: 3 College Street
City Postcode: St Albans AL3 4PW


GLAZING TECHNOLOGY: Liquidation Proceedings
--------------------------------------------
Company Name: Glazing Technology Industries Ltd
Company No: 1812469
Com. Business: Management Co
Appointed on: 27/10/00
Type: Members
Appointed by: Members
Liquidators: Graham G King IPno: 2223
Firm Name: Kings
Address: 3 College Street
City Postcode: St Albans AL3 4PW


HILLHEAD FILTRATION: Liquidation Proceedings
---------------------------------------------
Company Name: Hillhead Filtration & Engineer Co Ltd
Company No: SC
Appointed on: 27/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: Fraser J Gray IPno:
Firm Name: Kroll Buchler Phillips
Address: Afton House 26 West Nile Street
City Postcode: Glasgow G1 2PF


IBP MEDIA: Liquidation Proceedings
-----------------------------------
Company Name: IBP Media (UK) Ltd
Previous Name: IBP Freight Forwarding (UK) Ltd
Company No: 2729643
Com. Business: Business Services
Appointed on: 27/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: Arif Anwar IPno: 8240
Firm Name: Rifsons
Address: 63-64 Charles Lane St Johns Wood
City Postcode: London NW8 7SB


ICL:  More Jobs go to Cut Losses
------------------------------------
ICL, the e-business services company said it would cut more jobs and sell
surplus property as part of a plan to cut losses, The Times noted
yesterday. Some 650 staff across ICL's businesses, including 400
contractors and temporary staff, have either left or will leave over the
next three months, the company said, with further job losses expected early
next year. ICL also announced the appointment of Richard Christou, former
deputy chief executive, as chief executive. Mr Christou succeeds Keith
Todd, who left the company earlier this year.


LOOK WELL: Liquidation Proceedings
-----------------------------------
Company Name: Look Well Uniforms Ltd
Company No: IR
Appointed on: 27/10/00
Type: Creditors
Appointed by: Members
Liquidators: Sean O'Neill IPno:
Firm Name: O'Neill & Co
Address: 193 Lower Kimmage Road
City Postcode: Dublin 6


MEDIA CONTENT: Reports First-Half Pre-Tax Loss
----------------------------------------------
Sports media firm Media Content has reported a pre-tax loss of 5.22 million
pounds for the year to June 30, up from a deficit of 1.22 million pounds in
the previous year, Ananova reports. The figure included goodwill
amortization of 4.7 million pounds relating to the reversal of Media
Content Ltd. It said the write-off will enable investors to have a clearer
picture of Media Content's financial position now and in future.


PEGRA LTD: Liquidation Proceedings
----------------------------------
Company Name: Pegra Ltd
Company No: 1035856
Com. Business: Non-Trading Co
Appointed on: 27/10/00
Type: Members
Appointed by: Members
Liquidators: John Russell IPno: 5544
Firm Name: Poppleton & Appleby
Address: 93 Queen Street
City Postcode: Sheffield S1 1WF



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