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     T R O U B L E D   C O M P A N Y   R E P O R T E R     

                        E U R O P E

           Friday, January 5, 2001, Vol. 2, No. 4

                         Headlines


B E L G I U M

BUSSCHAERT INVESTMENT:  Investors May Recover BFr110 Million
LERNOUT & HAUSPIE:  Court to Rule on Bankruptcy Filing


C Z E C H   R E P U B L I C

CZECH TV:  Strikers Gets Union Support   
INVESTICNI A POSTOVNI:  More Bad Loans Surface
CZECH RAILWAYS:  Employees Get 5.5 Percent Wage Hike   


G E R M A N Y

E.M. TV:  Investors Want Compensation for Share Slump   
GIGABELL AG:  Microboss Bid Sends Stocks Soaring
INTERSHOP COMMUNICATIONS:  Profit Warning Sends Shares Crashing
KAISER PORZELLAN:  Investor Group Buys Insolvent Company


N E T H E R L A N D S

HRS:  Two Companies Take Over Industrial Site
LETSBUYIT.COM:  Investor Run Continues


U N I T E D   K I N G D O M

DELTA MECHANICAL: Liquidation Proceedings
EQUITABLE LIFE:  Hopes Equities Sale Will Rebalance Portfolio
ETOYS UK:  Operations to Cease January 19   
LETSBUYIT.COM:  Administrators Take Over Operations
SERTECH UK: Liquidation Proceedings

TIERNEY ELECTRICAL: Liquidation Proceedings
TIMB-A-TECH LTD: Liquidation Proceedings
TOBIN CONSTRUCTION: Liquidation Proceedings
VAUXHALL:  Workers Rally to Keep Plant Open
WARMLOOK LTD: Liquidation Proceedings

WIGIBS (9): Liquidation Proceedings
WINTER & CO: Liquidation Proceedings
WOOLTON ESTATES: Liquidation Proceedings
XYZ CREATION: Liquidation Proceedings


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

BUSSCHAERT INVESTMENT:  Investors May Recover BFr110 Million
------------------------------------------------------------
Investors of Belgian investment company Busschaert Investment may
recover another BFr110m from the sale of the company's property
portfolio, according to De Standaard & World Reporter. Solicitor
Alain Cleyman says part of the capital was invested in Thierry
Busshaert's property company.

With the appointment of two receivers, the company has been put
under court protection. Solicitors representing some of the duped
investors say that negotiations with the receivers continue for a
stake of the estimated BFr110 million revenue from the sale of
said properties.


LERNOUT & HAUSPIE:  Court to Rule on Bankruptcy Filing
------------------------------------------------------
The commercial court in Ieper will render its decision on the
bankruptcy filing of Lernout & Hauspie on Friday at 10 a.m. (0900
GMT). The court rejected the initial request filed last December
saying the firm submitted insufficient financial information and
inadequate recovery plan. Reuters reports that Belgian and U.S.
regulators are investigating Lernout & Hauspie, which faces
shareholder lawsuits in both countries over allegations it
misrepresented its financial results.

An audit of Lernout & Hauspie conducted last month by an internal
committee revealed that the company had overstated revenues by as
much as $277 million for the 2-1/2 years prior to June 30, 2000.
A separate audit by KPMG is still ongoing.

Reuters says L&H shares had traded above $70 last March on both
the U.S. Nasdaq and pan-European Easdaq before collapsing to
almost zero. Now, the stock has been removed from the Nasdaq
boards and indefinitely suspended by Easdaq. L&H is already
operating under Chapter 11 bankruptcy protection in the United
States.

Expected to attend Fridays's hearing are members of the company's
board of directors, representatives from the auditing firm KPMG,
Belgian shareholder consultancy Deminor, American debt holders,
banks, workers' unions and the Stonington group, which had sold
U.S. firm Dictaphone Corp. to Lernout & Hauspie in May.


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

CZECH TV:  Strikers Gets Union Support   
-----------------------------------
The Czech Association of Unions and the Association of
Independent Unions are supporting the striking workers of Czech
TV.

Meanwhile, Jiri Hodac remains the director of Czech TV despite a
call for his resignation from Deputy PM Vladimir Spidla. Czech
A.M. quoted Spidla as saying that Hodac is unable to handle the
situation. The Czech TV Council supports Hodac, saying he is
fully capable of managing station activities.

The International Federation of Journalists has asked the EU and
EC to pressure Czech authorities into condemning the actions of
Hodac. Czech A.M. reports CT is losing Kc 5 million daily in
advertising revenues, according to media analysts. Station
employees plan to demonstrate on Wenceslas Square today.

A meeting of the chairmen of the ODS, CSSD, Freedom Union and KDU
to address the CT crisis ended without consensus.


INVESTICNI A POSTOVNI:  More Bad Loans Surface
----------------------------------------------
The Czech Finance Ministry has revealed that the share of
classified loans at IBP stands at 75 percent and not 25 percent
as earlier claimed by the bank. Czech A.M. reports that the
difference between the figures is a result of "rolling over"
loans; a scheme labeling classified loans as standard using
financing from newly granted loans.  

The Cabinet is expected to discuss the Finance Ministry's report
today.


CZECH RAILWAYS:  Employees Get 5.5 Percent Wage Hike   
----------------------------------------------------
An approved collective agreement for Czech Railways will raise
nominal wages by 5.5 percent, local news agency CTK reports. The
agreement comes after trade unions demanded an increase of up to
10 percent. Reuters reports the state owned company raised
nominal wages by 4.5 percent in 2000.      

Management and the unions are still negotiating over the number
of employees to be laid off next year. Management plans to
dismiss 3,000 employees but unions agree to as many as 2,000
dismissals, according to Reuters.

The railways have posted multi-billion crown losses every year.
Czech A.M. reports that Czech Railways management has approved
the sale of Kc 2.45 billion in assets to cover a part of its over
Kc 40 billion in accumulated debts.


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

E.M. TV:  Investors Want Compensation for Share Slump   
-----------------------------------------------------
Investors of E.M. TV & Merchandising will seek compensation from
the company for the drop in share prices after the company issued
a profit warning last December. The investors claim that they
were assured in October that the company would meet its target
profit of 525 million marks. In December however, E.M. TV
replaced the original earnings before interest and tax (EBIT)
projection to 50 million marks.

Reuters reports that investors will send claims for compensation
before the end of the month. Dietmar Kaelberer, a lawyer at Tilp
& Kaelberer, says his firm has received 150 requests from
investors demanding a total of about 10 million marks from EM.TV.

Franz Braun, a lawyer at German law firm Rotter, said his company
was still examining whether it would demand compensation from
EM.TV. He said that more than 100 investors have called him.
Their losses total five million marks ($2.41 million).


GIGABELL AG:  Microboss Bid Sends Stocks Soaring
------------------------------------------------
Gigabell AG's stock market value more than doubled on Wednesday's
trading after Microboss Software AG launched a takeover bid. At
2.95 euros, the stock climbed 127 percent from Tuesday's close.
Sometime in March, Gigabell registered a value of 131.56 euros,
its highest value since that time. Microboss Chief Executive
Sudhir Bhatiar said the company is offering one Microboss share
for 20 Gigabell shares. He said the stocks are worth 32-36 euros
on the gray market.

The offer, which is valid until the end of January, is valued at
a 23-38 percent premium to Gigabell's closing price last Tuesday.
Dealers said speculative investors were buying the stock in the
hope of short-term gains. This is Gigabell's best performance
since it began insolvency proceedings last September.

Reuters says Microboss is interested in buying Gigabell as a way
of gaining a Neuer Markt listing.  


INTERSHOP COMMUNICATIONS:  Profit Warning Sends Shares Crashing
---------------------------------------------------------------
Neuer Markt shares of Intershop Communications AG dropped more
than 70 percent in trading last Tuesday after it warned that its
expected fourth quarter revenue of 28 to 30 million euros will
fall short compared to its original forecast. It also predicted a
net loss of 30 million euros to 32 million euros for the same
period. Its American depository shares in New York also dropped
more than 69 percent to a 52-week low.

Handelsblatt reports that Intershop attributes the earnings
shortfall to "the global slowdown in IT purchasing patterns and
lengthening of sales cycles." Shares of Intershop recently
changed hands at $4.69, down $10.44, on a volume of 604,100
shares. Earlier, shares hit a 52-week low of $4.56. The previous
low was $11.38, set November 22.

Wright Investors' Service Profile reports that as of December
1999, the company's long-term debt was 20,000.00 Euro and total
liabilities were 30.93 million Euro. The long-term debt to equity
ratio of the company is very low, at only 0.00.


KAISER PORZELLAN:  Investor Group Buys Insolvent Company
--------------------------------------------------------
Porcelain manufacturer Kaiser Porzellan Alboth & Kaiser GmbH & Co
KG, based in Staffelstein in Upper Franconia, has been acquired
by a Southeast Asian group of investors for an undisclosed price.

Frankfurter Allgemeine Zeitung reveals that Hans-Peter Langsch is
the newly appointed managing director. The company retained 130
of its 345 employees when it filed for insolvency last October
2000. A lifeboat company reportedly employed the retrenched
employees.  


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

HRS:  Two Companies Take Over Industrial Site
---------------------------------------------
Two Rotterdam port companies are taking over the industrial site
of HRS. The port companies Broekman Groep and Cobelfret Groep
will assume control of the 30-hectare site after HRS has been
declared insolvent. Of the 30-hectare complex in the Britannie
port of Rotterdam-Botlek, Broekman will control 10 hectares while
Cobelfret will take over the remaining 20 hectares.

NRC Handelsblad & World Reporter says that of the 220 HRS
employees, 30 will be employed by Cobelfret and the rest will be
made redundant. Despite union action, there is no redundancy
plan.


LETSBUYIT.COM:  Investor Run Continues
--------------------------------------
Internet retailer LetsBuyIt.com is experiencing low investor
confidence after its shares dropped 69 percent to 25p during
Tuesday's trading in Frankfurt's Neuer Markt. The company earlier
sought protection from creditors and company officials are to
meet with court appointed bankruptcy trustees to determine if the
troubled company is to remain in business.
   
Currently the company is not accepting new orders on its Web
site. The site is limited to "window shopping" only. The Media
Guardian reports that the company has only 11.4 million pounds
left in the bank, and made a loss of 16.5 million pounds in the
previous quarter.

It raised just 42 million pounds from its July flotation but
sales have been hit by the fall in consumer confidence in online
shopping. In November Letsbuyit.com failed to persuade
shareholders to put up an additional 50 million pounds and has
been cash-strapped ever since.


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

DELTA MECHANICAL: Liquidation Proceedings
------------------------------------------
Company Name: Delta Mechanical Services Ltd
Company No: 2180860
Com. Business: Design/Supply Heating Units
Appointed on: 23/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Neil F Hickling
IPno: 5449
Firm Name: Smith & Williamson
Address: No. 1 St Swithin Street
City Postcode: Worcester WR1 2PY


EQUITABLE LIFE:  Hopes Equities Sale Will Rebalance Portfolio
-------------------------------------------------------------
Equitable Life plans to sell equities worth more than 2.5 million
pounds to rebalance its investment portfolio, the Times reports.
The sale, coursed through electronic stock swapping services and
other crossing networks such as E-Crossnet, POSIT or Instinet,
will allow Equitable to exit the market anonymously. The company
chose not to sell the stock publicly, fearing stock dealers could
mark down the shares of companies they knew the group must sell.
   
The Times reports that the move is designed to ensure the group
receives full value from the stocks then switches to low risk
bonds to fortify its financial position. An Equitable spokesman
said the insurer was "confident" it could achieve the sale
without markets moving against it.


ETOYS UK:  Operations to Cease January 19   
-----------------------------------------
EToys will cease the operations of its UK unit on January 19.
According to marketing director James Bidwell, the U.S. parent
made the decision to close the European branch despite the
doubling of its holiday sales figures.  

The Times reports that the Nasdaq-quoted U.S. parent company is
fighting for survival after issuing a profits warning last
December, which sent its shares tumbling to a record low.

Analysts say that Etoys UK will not survive as an independent
entity. Its failure follows moves by TheStreet.com and UrbanFetch
to close their UK operations and the move of other US Internet
companies to abandon their European expansion plans. Etoys UK
stocks are currently trading at less than 1 percent of their peak
value earlier this year.

Bidwell said 74 jobs would be lost as a direct result of the
imminent closure.


LETSBUYIT.COM:  Administrators Take Over Operations
---------------------------------------------------
Administrators will take over the operations of LetsBuyit.com
after its managers agree to step down. John Palmer, founder and
supervisory board member, will act as temporary chief executive,
according to the Times. A statement from the company read: "John
Palmer, together with both administrators will be in charge of
the company."

Trading of its shares on the German Neuer Markt have shown a
recovery of 0.04 euro to 0.08 euro, or 7.4 percent, an
improvement from Tuesday's dismal 57 percent drop.

The Times further states that the company needs 80 million pounds
to reach profitability.


SERTECH UK: Liquidation Proceedings
------------------------------------
Company Name: Sertech UK Ltd
Company No: 3636272
Com. Business: Design Engineering
Appointed on: 23/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Kikis Kallis
IPno: 4692
Firm Name: Kallis & Co
Address: Mountview Court 1148 High Road Whetstone
City Postcode: London N20 0RA


TIERNEY ELECTRICAL: Liquidation Proceedings
--------------------------------------------
Company Name: Tierney Electrical Ltd
Company No: IR
Appointed on: 22/11/00
Type: Members
Appointed by: Members
Liquidators: Sophie Dillon
Address: 72 Merrion Square
City Postcode: Dublin 2


TIMB-A-TECH LTD: Liquidation Proceedings
-----------------------------------------
Company Name: Timb-A-Tech Ltd
Company No: 2985352
Com. Business: Manufacture Wood Products
Appointed on: 22/11/00
Type: Creditors
Appointed by: Creditors
Liquidators: John B Dare
IPno: 3290 Richard J Hill 8027
Firm Name: KPMG
Address: ArlingtonBusiness Park
City Postcode: Theale RG7 4SD


TOBIN CONSTRUCTION: Liquidation Proceedings
--------------------------------------------
Company Name: Tobin Construction Services Ltd
Company No: 3525898
Com. Business: General Builders
Appointed on: 22/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Anthony D Kent
IPno: 8764
Firm Name: Maidment Judd
Address: 60-62 High Street
City Postcode: Harpenden AL5 2SP


VAUXHALL:  Workers Rally to Keep Plant Open
-------------------------------------------
Workers will organize a public rally to convince General Motors,
Vauxhall's U.S. parent, to keep the Luton factory open. Michael
Burns, European chief of General Motors, will meet with union
officials on January 15 following an inquiry into Vauxhall's
closure by the Trade and Industry Select Committee.

The Times reports that the move comes after talks with employees
at MG Rover's Longbridge plant about fighting a successful
campaign. The 80,000-strong march against BMW's plans to sell
Rover to the venture capital group Alchemy also sustained
expectations for a positive outcome.


WARMLOOK LTD: Liquidation Proceedings
--------------------------------------
Company Name: Warmlook Ltd
Company No: 2750535
Com. Business: CMT
Appointed on: 23/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Kikis Kallis
IPno: 4692
Firm Name: Kallis & Co
Address: Mountview Court 1148 High Road Whetstone
City Postcode: London N20 0RA


WIGIBS (9): Liquidation Proceedings
-----------------------------------
Company Name: Wiqibs (9) Ltd
Previous Name: Datatec Inform Training Ltd
Company No: 2908516
Com. Business: Provide IT Training
Appointed on: 23/11/00
Type: Members
Appointed by: 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


WINTER & CO: Liquidation Proceedings
-------------------------------------
Company Name: Winter & Co (Management) Ltd
Company No: 2673307
Com. Business: Estate Agents
Appointed on: 22/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Malcolm B Harris
IPno: 2132
Firm Name: Valentine & Co
Address: 4 Dancastle Court 14 Arcadia Avenue
City Postcode: London N3 2HS


WOOLTON ESTATES: Liquidation Proceedings
-----------------------------------------
Company Name: Woolton Estates Ltd
Company No: 2870496
Com. Business: Estate Management
Appointed on: 22/11/00
Type: Members
Appointed by: Members
Liquidators: Anthony Murphy
IPno: 8716
Firm Name: Smith & Williamson
Address: Onslow Bridge Chambers Bridge Street
City Postcode: Guildford GU1 4RA


XYZ CREATION: Liquidation Proceedings
--------------------------------------
Company Name: XYZ Creation Ltd
Company No: 3702220
Com. Business: Advertising
Appointed on: 23/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Duncan R Beat
IPno: 8161
Firm Name: Morison Stoneham
Address: Moriston House 75 Springfield Road
City Postcode: Chelmsford CM2 6JB



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

Troubled Company Reporter -- Europe is a daily newsletter co-
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Copyright 2001.  All rights reserved.  ISSN 1529-2754.

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