/raid1/www/Hosts/bankrupt/TCREUR_Public/001214.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

       Thursday, December 14, 2000, Vol. 1, No. 155

                        Headlines


B E L G I U M

LERNOUT & HAUSPIE: Ponders Options Following Protection Veto
LERNOUT & HAUSPIE: Minorities Secure Ruling on Asset Protection
LERNOUT & HAUSPIE: To Appeal Belgium Concordaat Ruling


C Z E C H   R E P U B L I C

IPB:  CSOB Lodges FTV Premiera Sale Complaints
VIKAM PRAHA: Sidmar Gets 60 Percent Shares


G E R M A N Y

ADVANCE BANK: Reports Losses Expected to Deepen
ABIT AG:  Posts Q1 Net Loss of DM4.8 Million
INTERSPAR: Major Shareholder to Fund Restructuring


I R E L A N D

VIRGIN EXPRESS: Loss-Making Airline to Close Arm
VIRGIN RETAIL:  Faces Financial Crisis


N E T H E R L A N D S

BAILEY: Crane Builder Escapes Insolvency
FOKKER: Staff Will Receive Pension Indexation


N O R W A Y

NOMADIC SHIPPING: Reports a Nine Month Net Loss


S P A I N

ECUALITY:  Faces Financial Crisis, Closes Offices


U N I T E D   K I N G D O M

BRADSTOCK GROUP:  Posts Pre-Tax Loss of 15.4 Million Pounds
CRM FUELS: Liquidation Proceedings
CRM PROPERTIES: Liquidation Proceedings
EBTECH LTD: Liquidation Proceedings
EQUITABLE LIFE: Members Call for Meeting to Oust Directors

EQUITABLE LIFE:  FSA Issues Sales Warning
KEYSTONE PROPERTIES: Liquidation Proceedings
LAW MARKETING: Liquidation Proceedings
LLOYDS TSB: Abbey National Rejects Second Takeover
MACHIN OIL: Liquidation Proceedings

MILLENIUM DOME: Commission Admits Mistakes
NORTHGATE SOLUTIONS:  Reports First-Half Pre-Tax Loss
POWERGEN: Turbogas Produtora Acquires 49.9 Percent Stake
SEAGRAM: Allied Bid for $7 Billion
SEMA: Controversial Share Sale by Non-Executive Director

STURMEY-ARCHER: Faces Severe Competition, Auction Ends
ULTRASIS:  Posts Pre-Tax Loss of 4.98 Million Pounds
UNITED POWDER: Liquidation Proceedings
VAUXHALL: Set to End Car Production at Luton
VAUXHALL: Union Leaders Fight to Save Plant

VAUXHALL: Govt Pledges Action to Help Employees
WETNOSE.COM LTD: Liquidation Proceedings


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

LERNOUT & HAUSPIE: Ponders Options Following Protection Veto
------------------------------------------------------------
Beleaguered speech technology software developer Lernout &
Hauspie reportedly said it is reviewing its options following a
Belgian court's rejection of its bankruptcy protection request,
Newsbytes News Network reports this week. Options include
appealing the court ruling, re-filing a new request for
protection from creditors with more detailed financial
information and an improved business plan, and further options
under the U.S. Chapter 11 protection ruling granted 10 days ago
by an American court.

According to Newsbytes News Network, Reuters reported that a
company spokesman said the board of directors was investigating
whether the U.S. bankruptcy protection could be extended to
Belgium. Belgian Commercial Court Judge Michel Handschoewerker
refused the company's request for bankruptcy protection, citing
insufficient financial information. The firm is being
investigated by both the U.S. Securities and Exchange Commission
and Easdaq. L&H said last month it will restate its results for
1998, 1999 and the first half of 2000 after an internal audit
found certain errors and irregularities.


LERNOUT & HAUSPIE: Minorities Secure Ruling on Asset Protection
---------------------------------------------------------------
Deminor, a consultancy which represents Lernout & Hauspie
minority shareholders, said a Belgian court has approved its
demand for the appointment of a board of administrators to
examine and protect the company's assets. AFX reported yesterday
that the decision of the commercial court in Ypres prevents the
company from selling or pledging in any way its assets without
the prior consent of the board. "The Court empowers the board of
administrators to take all necessary measures to preserve and to
protect the assets of Lernout & Hauspie and to make a complete
inventory of Lernout & Hauspie's assets," Deminor said.

Lernout & Hauspie spokesman Ron Schuermans said the company has
no problem with the court's decision, "because we never had any
intention of selling or pledging our assets without the approval
of the court." He pointed out that only two of the seven measures
Deminor had applied for were granted by the court, and the group
failed to get control of the company. No court officials were
immediately available for comment. Deminor said it filed its
request because it believed "the mismanagement demonstrated by
Lernout & Hauspie's board of directors, management and advisors
was harming the rights of all shareholders and creditors."

AFX noted that Deminor also referred to the court's decision on
Friday to refuse Lernout & Hauspie creditor protection, saying it
was an implicit criticism of the management and directors, and
that "it is clear that they expressly withheld essential
information while filing and pleading the motion." Schuermans
declined to comment on the allegations, saying its is a matter
for the board of directors who have been in a meeting all day to
decide the company's options following the refusal of creditor
protection in Belgium.


LERNOUT & HAUSPIE: To Appeal Belgium Concordaat Ruling
------------------------------------------------------
Troubled Belgian speech technology company Lernout & Hauspie said
its board had unanimously voted to appeal for concordaat.
Meanwhile, the USA Belgian shareholder group said a court had
approved its demand that L&H not sell assets or use them as
collateral for a loan without the approval of a special board.
L&H this month won an order in a U.S. court protecting it from
creditors. It sought protection in the United States after a
consortium of five banks called in hundreds of millions of
dollars in loans, Reuters reports this week.

L&H, which plans to restate its results for the last two-and-a-
half years after irregularities were found in them, faces
investigations by U.S. and European regulators. Reuters noted
that it is also facing lawsuits from U.S. investors.

The court in the western Belgian town of Ieper where L&H has its
European headquarters, rejected L&H's request for protection from
its creditors. It said L&H had not given it enough financial data
or a satisfactory business plan. The court also said the results
of a special audit by independent auditor KPMG would be essential
in any new request for protection filed by the company. L&H has
since been reviewing its options, including appealing the court's
decision. It has also looked into whether the U.S. protection
could be extended to Belgium.


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

IPB:  CSOB Lodges FTV Premiera Sale Complaints
----------------------------------------------
CSOB filed a criminal complaint against former IPB managers,
including Libor Prochazka, in connection with IPB's 1999 transfer
of TV Prima license holder FTV Premiera to Domeana, which was
later acquired by GES Holding. Domeana reportedly borrowed Kc 241
million from IPB to pay it for the FTV shares.

Czech A.M. noted that ODS called CSOB's request for Kc 160 bln
from the state in guarantees for bad IPB loans unacceptable and
blamed the Cabinet for giving CSOB the keys to state coffers. The
state's auditor, however, found discrepancies with the bank's
audit and a recalculation has been ordered. CSOB claims it did
not and never will demand any money from the state budget.


VIKAM PRAHA: Sidmar Gets 60 Percent Shares
------------------------------------------
Vikam Praha has hiked its share capital from Kc120m to Kc205m by
swapping its debt to Sidmar steel company of Belgium at an
extraordinary general meeting. Vikam supplies special sheet metal
to the construction sector.

Sidmar, a leading European steel producer with an annual output
of 4.5m tons, now controls 60 percent of Vikam, which will enable
it to expand to other countries in Eastern Europe. Vikam, with 75
employees, was privatized in 1993. Its owners had been looking
for a strategic partner among leading European steel producers in
an effort to boost the company's activities, CTK & Euromoney
reports this week.


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

ADVANCE BANK: Reports Losses Expected to Deepen
-----------------------------------------------
Advance Bank is sliding deeper into losses than expected in 2000,
Handelsblatt reports this week. In 1999, the direct-banking arm
of Dresdner Bank booked a loss of just under DM100 million, an
improvement from the DM200 million loss incurred in 1998. Its new
chairman Martin Blessing said that this year losses might exceed
those of 1999. Blessing said the planned integration of
Dresdner's asset-management firm DreVB as well as investments in
information technology would place an additional burden on the
results.

Furthermore, Advance Bank is examining additional synergy
potential with parent Dresdner, particularly in the area of data
processing, which also could have a negative effect on results.
Handelsblatt states that Advance Bank only started offering
Internet accounts this summer. It thus failed to benefit from the
explosive boom in online-brokerage business, Blessing said.


ABIT AG:  Posts Q1 Net Loss of DM4.8 Million
--------------------------------------------
ABIT AG posted a first quarter net loss of DM4.8 million,
including one-off DM800,000 acquisition costs for its U.S. units,
DAKCS Software Systems and GWA Information Systems, Handelsblatt
reports this week.

Wright Investors' Service noted that as of July 1999, the
company's long-term debt was 152,244.87 Euro and total
liabilities were 5.04 million Euro.


INTERSPAR: Major Shareholder to Fund Restructuring
-------------------------------------------------
Spar Handels AG will use a capital increase to finance the
planned restructuring of its loss-making Interspar chain of
outlets, Handelsblatt has learned from people within the
supervisory board. The supervisory board met last Thursday and it
was decided that the capital increase would be fully subscribed
by Spar's major shareholder, France's Intermarche. The money is
to be used to finance the stores' conversion along the lines of
French Intermarche outlets.

Intermarche stressed it will provide the capital injection only
if strict conditions are fulfilled. Spar chief Arwed Fischer must
find new ways of cutting costs. All areas will come under
scrutiny to see what they can provide to the cost-cutting drive,
according to Walter Moritz, who represents the trade union on the
supervisory board. Moritz said Intermarche first revised down all
Spar divisional budgets as early as November. All divisions are
now expected to come up with ways of making the savings required,
Handelsblatt reports this week.


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

VIRGIN EXPRESS: Loss-Making Airline to Close Arm
------------------------------------------------
Loss-making airline Virgin Express said it was to sell its Irish
operation, which employs 160 people in Shannon. The announcement
prompted rumors that some Virgin pilots were set to approach
financier Dermot Desmond and racing millionaire JP McManus to
support a buyout, Irish Independent reported yesterday.

Virgin Express, which is run by Sir Richard Branson, said it had
received approaches from a number of investors interested in
Virgin Express Ireland. But it said it would cancel its twice-a-
day flights from Shannon to London and its once-a-day flights to
Brussels from January 15 next. A company spokesperson confirmed
that all 300 plus employees of the company at Shannon, Gatwick
and Brussels bases will be made redundant if no takeover emerges
between now and January 15.

The Irish routes have come under pressure after low-cost rival
Ryanair returned to Shannon earlier this year. Virgin Express
Ireland has been running for two years and Mr Hamrogue insisted
its routes were breaking even. The holding company said it was
re-focusing on its profitable Brussels hub. The company was hit
recently by the resignation of its managing director John Osborne
after just 12 months in the role. Mr Osborne subsequently joined
Ryanair, Irish Independent noted.


VIRGIN RETAIL:  Faces Financial Crisis
--------------------------------------
Irish Independent reported yesterday that video and CD retailers
Virgin Retail Ireland reporting losses of 8,000 pounds in 1999.
Virgin Retail employs over 120 staff and operates six stores in
the South, including the Virgin Megastore in Dublin. The company
and its fellow subsidiary undertakings suffered a significant
deterioration in their trading margins. This was a direct result
of pricing actions in the market, driven principally by increased
competition from direct/multiple retailers, supermarkets and e-
commerce.

The report shows that Virgin shareholders took up all of the
obligations previously owed by the group to the banks. The Irish
company guaranteed bank loans and facilities made to the parent
and other subsidiaries of 185m pounds, most of which was secured
on group assets. Virgin Retail Ireland had fixed assets of 2.8m
pounds.


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

BAILEY: Crane Builder Escapes Insolvency
----------------------------------------
Bailey, the Dutch crane builder, has escaped a threatening
insolvency. The new owner, Dutch maker of earth-moving equipment
Ten Have, promised that it would give extra capital to creditors.
Ten Have acquired Bailey a month ago. The company was prepared to
pay back only a limited part of the debts to creditors. The 120
employees feared that creditors would confiscate valuable
production means. Last week, workers occupied the site to prevent
this. They called off these actions following the promise by Ten
Have, De Telegraaf & World Reporter reports.


FOKKER: Staff Will Receive Pension Indexation
---------------------------------------------
Some 10,000 staff who are members of the pension fund of
insolvent Dutch aircraft manufacturer Fokker are still to receive
a fixed indexation of their pensions, Het Financieele Dagblad &
World Reporter reports. This measure is a permanent reinsurance
agreement with Delta Lloyd and Aegon, which will be taking over
all possessions and obligations of Fokker's pension fund on 1
January 2001. The rights will increase by 2.65 percent annually,
similar to the rate of inflation. The two insurers were
previously involved in the pension fund. Delta Lloyd implements
and invests the fund's Fl 1.5bn capital. The two insurers share
the risks.


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

NOMADIC SHIPPING: Reports a Nine Month Net Loss
-----------------------------------------------
Lloyd's List International reported that an extraordinary general
meeting at Bergen's Nomadic Shipping on November 28 capped two
months of transition, coupled with some uncertainty. The market
forced Nomadic to seek debt relief towards the end of the summer.
This was accomplished, as $19 million out of Nomadic's $84m in
mortgage debt was frozen following successful negotiations with
Bergensbanken, Christiania Bank, Den norske Bank, Nedship and
Sparebanken Vest.

Nomadic suffered a nine-month net loss of NKr73.02m this year.
Its balance sheet as at September 30, which does not reflect the
two-ship lightening, showed negative equity to the tune of
NKr56.85m and long-term liabilities of NKr774.23m, on an asset
base of NKr775m.

Wright Investors' Service noted that at the end of 1999, Nomadic
Shipping ASA had negative working capital, as current liabilities
were NOK 148.82 million while total current assets were only NOK
123.24 million.


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

ECUALITY:  Faces Financial Crisis, Closes Offices
-------------------------------------------------
Spain's Ecuality is in the process of closing its offices in
Venezuela and Mexico and is liquidating the Mexican version of
its online store Alcosto, according to sources close to the
company. Business News Americas reports Ecuality is looking to
sell or shut down all outlets of its online stores Diversia and
Alcosto due to the company's debt crisis, and last month froze
Alcosto's operations in Chile and Argentina.

The company met with its 40 largest creditors, who were split
down the middle on whether to accept the company's proposal to
pay half of its outstanding debt. Ecuality subsequently suspended
all debt payments and filed for bankruptcy protection, Spanish
press noted. Ecuality has a total of US$12.9mn debt with 359
creditors including Andersen Consulting, Pricewaterhouse Coopers,
Bankinter and Arthur Andersen.


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

BRADSTOCK GROUP:  Posts Pre-Tax Loss of 15.4 Million Pounds
-----------------------------------------------------------
Bradstock Group (insurance broker) reported its pre-tax losses
for the year of 15.4 million pounds. There is no dividend, The
Times reports yesterday.

Wright Investors' Service noted that Bradstock Group Plc provides
direct insurance and reinsurance broking services. The group's
insurance activities are carried on in such areas as bloodstock,
contractors, events, freight, housing associations, insolvency,
plastics, professional indemnity, property and water companies.
This company has paid no dividends during the last 12 months. The
company also reported losses during the previous 12 months.


CRM FUELS: Liquidation Proceedings
-----------------------------------
Company Name: CRM Fuels (Haverhill) Ltd
Company No: 1322709
Com. Business: Coal & Oil Merchants
Appointed on: 11/04/00
Type: Creditors
Appointed by: Members
Liquidators: David J Pallen IPno: 5317
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


CRM PROPERTIES: Liquidation Proceedings
----------------------------------------
Company Name: CRM Properties Ltd
Company No: 1332620
Com. Business: Property Ownership & Management
Appointed on: 11/04/00
Type: Creditors
Appointed by: Members
Liquidators: David J Pallen IPno: 5317
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


EBTECH LTD: Liquidation Proceedings
------------------------------------
Company Name: Ebtech Ltd
Company No: 2669058
Appointed on: 11/04/00
Type: Creditors
Appointed by: Creditors
Liquidators: P Finnity IPno: 8768 D R Wilton 5708
Firm Name: PricewaterhouseCoopers
Address: 53 Shep Street
City Postcode: Northampton NN1 2NF


EQUITABLE LIFE: Members Call for Meeting to Oust Directors
----------------------------------------------------------
Policy holders at Equitable Life, the mutual that closed its
funds to new business last week, are trying to force some
directors to stand down in favor of their own candidates. The
Equitable Life Members' Action Group (EMAG) said that it is
considering requisitioning an extraordinary general meeting of
the society to force a vote on the issue, The Independent reports
this week.

The move comes after the shock announcement that the 238-year-old
mutual life assurer was closing its doors to new customers,
following its failure to find a buyer. The news alarmed
policyholders, as Equitable admitted that the vast majority would
now see a downturn in the return on their policy. Alan Nash,
managing director of Equitable, resigned as a result of the news.

The Independent noted that the group is also considering whether
it can bring another legal challenge against the society, on the
grounds that the majority of its customers' interests were not
properly represented in the past. In July, a group of 90,000
policyholders with guaranteed annuity rates won a landmark House
of Lords battle. The Lords ruled that they should not have their
bonuses cut in order to fund the guarantee. However, as a result,
1.5bn pounds had to be diverted from the funds of 360,000
ordinary members to those with the GAR.


EQUITABLE LIFE:  FSA Issues Sales Warning
-----------------------------------------
The Financial Services Authority (FSA) warned financial salesmen
against attempting to cash-in on vulnerable policyholders at
Equitable Life. The regulator is concerned policyholders may be
badly advised to switch their pension policies out of the
financially troubled insurer, The Times reports yesterday.

Equitable closed to new business last Friday after a House of
Lords judgment in July, which had ruled that its decision to cut
terminal pension bonuses to holders of guaranteed annuity rate
(GAR) policies was illegal. This left the company with a
shortfall of at least 1.5 billion pounds in its finances.

The FSA move follows growing criticism of the regulatory
authorities for not acting earlier over the company's financial
problems. A number of firms of independent financial advisers
have been heavily advertising their services in a bid to pick up
business from Equitable policyholders. The policyholders face
penalties of 10 per cent of the fund value for leaving the
company. Setting up a new pension would incur further costs,
including commission paid to financial advisers for advice on the
transfer.

Ernst & Young, Equitable's auditor, defended its decision to sign
off the company's accounts last year, The Times noted.


KEYSTONE PROPERTIES: Liquidation Proceedings
---------------------------------------------
Company Name: Keystone Properties Ltd
Company No: 2966576
Com. Business: Property Developers
Appointed on: 11/04/00
Type: Creditors
Appointed by: Members
Liquidators: Anthony P Benedict IPno: 3287
Firm Name: Benedict Mackenzie
Address: 3-4 Mulgrave Court Mulgrave Road
City Postcode: Sutton SM2 6LF


LAW MARKETING: Liquidation Proceedings
---------------------------------------
Company Name: Law Marketing Services Ltd
Company No: 3096439
Com. Business: Advertising
Appointed on: 11/04/00
Type: Creditors
Appointed by: Creditors
Liquidators: Gregory J Mullarkey IPno: 6544
Firm Name: Leo B Wallwork & Co
Address: 14-16 St Thomas Road
City Postcode: Chorley PR7 1HR


LLOYDS TSB: Abbey National Rejects Second Takeover
--------------------------------------------------
Mortgage bank Abbey National is rejecting a second takeover
approach from Lloyds TSB. Ananova reports this week that the
former building society confirms it has received a second letter
from Sir Brian Pitman, Lloyds' chairman, setting out a further
proposal to buy Abbey National. The letter offered Abbey
shareholders 1.5 Lloyds TSB shares plus 260p in cash for each
Abbey share - a move that would have valued each Abbey share at
12.74 pounds, or the business at about 18.2 billion pounds
overall.

According to Ananova, Abbey says the board has unanimously
rejected the proposal. Abbey National said: "The Board of Abbey
National has met to consider the Lloyds TSB proposal and
unanimously agreed to reject it as inadequate and uncertain." The
move put the ball back in Lloyds' court and leaves Sir Brian and
his chief executive Peter Ellwood with the quandary of whether
now to go hostile in their efforts to take over the bank.


MACHIN OIL: Liquidation Proceedings
------------------------------------
Company Name: Machin Oil Company Ltd
Company No: 1363042
Com. Business: Coal & Oil merchants
Appointed on: 11/04/00
Type: Creditors
Appointed by: Creditors
Liquidators: David J Pallen IPno: 5317
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


MILLENIUM DOME: Commission Admits Mistakes
------------------------------------------
The Millennium Commission has admitted that the Millennium Dome
has "fallen short" of its aspirations. The Commission, chaired by
the Culture Secretary Chris Smith, has given the Dome a quarter
of its 2bn pounds budget which is raised by the National Lottery.
BBC News reports yesterday that on Tuesday the attraction
welcomed its six millionth visitor, less than three weeks before
it closes for good. Original estimates had put visitor figures at
12 million. In an open letter to the public the commission
members admitted that they had made mistakes. The government is
backing the sale of the Dome to Legacy PLC which plans to turn it
into a high-tech business park.

The Millennium Commission's open letter said: "not everything has
been as successful as we hoped". But it continued: "We were right
to take risks. If we had not taken risks we could not have
supported the innovative and the ambitious ideas which were
brought to us. "A safer program would have been dull and much
less than the country deserves."

BBC News noted that the commission, which also includes former
Northern Ireland secretary Mo Mowlam, ex-Tory party deputy leader
Michael Heseltine and children's TV personality Floella Benjamin,
was in charge of deciding how to spend 2bn pounds of National
Lottery cash. As well as the Dome, this included events to mark
the millennium and large and small scale projects.


NORTHGATE SOLUTIONS:  Reports First-Half Pre-Tax Loss
-----------------------------------------------------
Northgate Solutions (computer services) reported first-half pre-
tax losses of 1.25 million pounds. Again there is no dividend,
The Times reports yesterday.

Wright Investors' Service reported that as of April 2000, the
company's long term debt was 842,000 pounds and total liabilities
were 55.27 million pounds.


POWERGEN: Turbogas Produtora Acquires 49.9 Percent Stake
--------------------------------------------------------
Powergen edged a step closer to cut its year-end debt position by
at least 1 billion pounds, when it sold a 49.9 percent stake in
Turbogas Produtora Energetica, a natural gas-fired power station
near Oporto, Portugal, for 110 million pounds. As part of the
deal, RWE, the German multi-utility group which owns Thames
Water, has agreed to repay loans of about 29.5 million pounds,
which Powergen extended to Turbogas. The deal will cut Powergen's
debt by 139.5 million pounds, The Times reported yesterday.


SEAGRAM: Allied Bid for $7 Billion
----------------------------------
The Independent reported last week that Allied Domecq is facing
the prospect of making a $7bn (4.9bn pounds) bid for the Seagram
drinks business without seeing internal forecasts prepared by
banker Morgan Stanley, or leaving arch rival Diageo a virtually
clear run to take the prize. This week, the deadline for second-
round bids in the auction of the operation - whose brands include
Captain Morgan rum, Chivas Regal whiskey and Mumm's Cordon Rouge
champagne.

So far only two bidders have signed confidentiality agreements
allowing them to see internal forecasts and detailed information
prepared by Vivendi Universal, the media giant which is selling
the wine and spirits operation.

They are a joint consortium of Diageo and Pernod Ricard, the
French drinks business, and a group formed by the rum maker
Bacardi and Brown-Foreman, the American business best known for
its Jack Daniels whiskey.

However a third bidder - Allied Domecq - has been stalking the
auction like a spectre at the feast. It has yet to make an offer,
despite the group's chief executive, Philip Bowman, expressing
his desire to build up the group's spirits operation through
acquisition. It is understood that Allied Domecq has not signed
the confidentiality agreement - yet it may still bid.

The Independent noted that the rum brand is owned by a Puerto
Rican company which has issued legal proceedings to withdraw the
license to make it from Seagram - and plans to hand it to Allied
Domecq. The move, which was made in the Puerto Rican courts, has
been challenged by Seagram.


SEMA: Controversial Share Sale by Non-Executive Director
--------------------------------------------------------
The future of Pierre Bonelli was in doubt as the Sema chief
executive came under attack from two sides. Ousted non-executive
director Harmut Lademacher told the Independent on Sunday that M
Bonelli has been informed in advance of intended shares sales by
Herr Lademacher which breached the rules on trading in the closed
period ahead of Sema's half-year results, The Independent noted
last week. UK institutional investors are stepping up the
pressure on the telecoms and technology group to implement
boardroom changes which would restrict Mr Bonelli's influence
over the company and could force him out.

The Independent noted that Mr Lademacher, talking for the first
time since the scandal was uncovered, admits that he made a
mistake and traded during the closed period. But he said he
informed Mr Bonelli of the impending share sale on 10 August at a
meeting which took place at the Hotel Majestic in Cannes.

Furthermore, he said it was not clear that he had joined the
board of Sema as no board meetings took place between the
completion of the LHS' acquisition on 29 July and 18 October.
Unusually, the board did not meet to discuss the interim figures
before they were released. Sema, were told by City regulator, the
Financial Services Authority, on 30 November that it will not
pursue an investigation into Mr Lademacher's actions. However, no
mention of this was made on 4 December when Sema announced its
own internal investigation.

A Sema spokesman admitted that Mr Lademacher told Mr Bonelli of
the likely share sales on 10 August but did not give details. It
added that it was up to the FSA, not Sema, to release information
about the investigation.


STURMEY-ARCHER: Faces Severe Competition, Auction Ends
------------------------------------------------------
Sturmey-Archer closed in September with the loss of 300 jobs. BBC
News reports this week that thousands of lots - including a
1,000-ton Leibergeld forging machine - will go on sale over the
next three days in an auction handled by FPD Savills. Sturmey-
Archer, which had been making gears and saddles since 1902, faced
severe competition from overseas and a decline in the popularity
of its world-famous hub gear product. It has been largely
replaced by the more popular derailleur system, which is used in
most modern bicycles.

BBC News noted that the Sturmey-Archer name and intellectual
rights have been sold to another bidder. "There is still a
market, albeit a small one for these kind of gears. "We expect
significant interest from overseas buyers." It is the second time
in a year that Nottingham, the centre of the British cycling
industry, has been involved in major upheaval. This time last
year Raleigh shut down its bike frame manufacturing division at
its Triumph Road premises, with the loss of 50 jobs. Its 800
workers are now involved only in the assembly of mostly foreign-
made parts.


ULTRASIS:  Posts Pre-Tax Loss of 4.98 Million Pounds
----------------------------------------------------
Ultrasis (software) announced a pre-tax loss for the year of 4.98
million pounds. Again there is no dividend, The Times reports
yesterday.


UNITED POWDER: Liquidation Proceedings
---------------------------------------
Company Name: United Powder Coaters Ltd
Company No: 2778061
Appointed on: 02/11/00
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


VAUXHALL: Set to End Car Production at Luton
--------------------------------------------
Vauxhall, the British arm of US carmaker General Motors, is set
to stun the motor industry by announcing plans to end car
production at one of its UK plants, with the loss of more than
2,000 jobs, Ananova reports this week. Union leaders have been
called to an emergency meeting to hear the grim news that
production is to be ended at the huge factory in Luton,
Bedfordshire, where the Vectra model is made.

Ananova noted that the company refused to confirm or deny
speculation that huge over capacity of vehicles had led to the
dramatic decision. Production of vans on an adjoining site is
likely to continue, but the development came as a total shock to
workers.

The Luton factory is already set to close for four weeks over
Christmas as trading conditions continue to hit car firms across
the UK. Tony Woodley, national officer of the Transport and
General Workers Union, said on his way to the meeting at Luton
that he had heard several rumors.

Vauxhall, said last month that some workers from Luton and its
factory at Ellesmere Port on Merseyside were set to transfer to a
new van assembly joint venture with Renault. Workers moving to
GM's former van plant at Luton are expected to start production
in the New Year.


VAUXHALL: Union Leaders Fight to Save Plant
--------------------------------------------
Union leaders have reacted with shock and disbelief at the news
of the impending closure of the Vauxhall plant and pledged to
campaign to try to keep car production at Luton, Ananova reports
this week. "We will fight tooth and nail to maintain car
assembly," says Duncan Simpson, national officer of the
Amalgamated Engineering and Electrical Union.

Tony Woodley, national officer of the Transport and General
Workers' Union, says there is "absolutely no need" for Vauxhall
to end car production at Luton. "There is no valid reason for
there to be any talk of this plant closing. It is yet another
example of how companies see the UK as an easy place to sack
workers." John Edmonds, general secretary of the GMB union, says:
"This is rapidly turning into UK manufacturing's blackest week.
In the last 24 hours, more than 3,500 jobs have been lost in
shipbuilding, textiles and car manufacturing.

Around 2,000 jobs are likely to be axed at Luton through the
ending of car production, but the final total is likely to be
considerably more because of the knock-on effect. The factory was
opened in 1905 and now employs around 3,500 workers, Ananova
noted.

The Department of Trade and Industry has declined to comment.


VAUXHALL: Govt Pledges Action to Help Employees
-----------------------------------------------
The government has pledged support for employees of General
Motors Corp's Vauxhall unit following the announcement that a
restructuring will result in 5,000 job losses across Europe,
2,000 of which will be at the Vauxhall Luton plant, Ananova
reported this week.

"Vauxhall's announcement of job losses at Luton is a bitter blow
for the individuals affected, their families and the local
community," said Trade and Industry Secretary Stephen Byers. "Our
key aim will be to find new job opportunities to replace those
being lost over the next year, and the government is determined
to play its part."

Byers said the government will help companies in the supply chain
to diversify and find new business as well as working with
Vauxhall, local authorities and other relevant bodies to provide
a package of advice and assistance to those affected by the
decision. He added resources would be provided for loan finance
and equity to assist new small businesses along with help with
money management and investment advice.


WETNOSE.COM LTD: Liquidation Proceedings
----------------------------------------
Company Name: Wetnose.Com Ltd
Previous Name: Wet Nose Promotions Ltd
Company No: 3757778
Com. Business: Internet/Mail Order Retail Pet Prod
Appointed on: 02/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Timothy C Ball IPno: 8081
Firm Name: Mazars Neville Russell
Address: Clifton Down House Beaufort Buildings
City Postcode: Bristol BS8 4AN



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 * * *