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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

            Monday, January 8, 2001, Vol. 2, No. 5

                        Headlines


B E L G I U M

LERNOUT & HAUSPIE:  Debts Exceed $520m
PANTOCHIM:  Creditors Okay BASF Takeover      


C Z E C H   R E P U B L I C

CZECH TV:  Public Supports Employee Strike


I R E L A N D

TUSKAR RESOURCES:  Oil Company Closure Is Imminent


I T A L Y

L'ESPRESSO:  Stock Exchange Suspends Share Trading


P O L A N D

DAEWOO POLAND:  Workers Hit By Lay-off


R U S S I A

MEDIA-MOST:  Court Hears Case Appeal vs. Gusinsky  


S P A I N

BANCO ARABE:  New Capital Infusion


U N I T E D   K I N G D O M

ARENA LEISURE:  Bets on Expansion to Stem Losses
ADS TRANSPORT: Liquidation Proceedings
C K MANAGEMENT: Liquidation Proceedings
EQUITABLE LIFE:  Rivals Lure Policyholders
GOETZ (UK): Liquidation Proceedings

INTERSHOP:  Lower Profits Seen
JAYWOOD CONSTRUCTION: Liquidation Proceedings
LANDMARK:  DTI Inquiry into Closure Possible  
L S CHALMERS: Liquidation Proceedings
LIFESTAR LTD: Liquidation Proceedings

METROCAB:  Taxi Manufacturer Files For Administration  
MODERN CONSTRUCTION: Liquidation Proceedings
OPEN ROAD: Liquidation Proceedings
SHIPDESK:  Site's Liquidation to Affect Investors
SUN BV:  British Unit Up for Sale


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

LERNOUT & HAUSPIE:  Debts Exceed $520m
--------------------------------------
The debt of speech technology company Lernout & Hauspie could
reach 520 million dollars, which is 100 million dollars more than
the figure presented in the company's initial request for
bankruptcy protection filed last November. According to L'Echo,
the new request filed in a Belgian court could have taken into
account this figure. The court is expected to rule on Friday at
0900 GMT.

An audit conducted by Lernout & Hauspie's internal committee
revealed that the company overstated its revenue by as much as
$277 million for the 2-1/2 year period prior to June 30, 2000. A
separate audit by KPMG has yet to be completed.


PANTOCHIM:  Creditors Okay BASF Takeover      
----------------------------------------
BASF AG of Germany will acquire Belgian chemicals company
Pantochim for BFr6 billion, according to the World Reporter & Le
Soir. Although the European Commission will not authorize the
takeover for another three months, production begins on January
4, with BASF keeping 312 of Pantochim's 400 employees.

Out of the 65 votes cast, 37 Pantochim creditors voted in favor
of the sale, thereby exceeding a 50 percent majority.


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

CZECH TV:  Public Supports Employee Strike
------------------------------------------
The ongoing strike of Czech TV (CT) employees is gaining massive
public support -- 60,000 to 100,000 people demonstrated yesterday
in Prague backing numerous pleas for CT director Jiri Hodac to
resign. In a resolution passed yesterday, the Senate also made
the same appeal joining the ranks of CSSD leaders asking for
Hodac's ouster.

Czech A.M. reports that the Cabinet approved a legislative
proposal calling for new CT Council elections to be conducted by
independent organizations rather than parliamentary parties. Four
of the seven council members have reportedly expressed doubt over
Hodac's ability to handle the crisis, contradicting an earlier
statement by council chairman Miroslav Mares that Hodac enjoys
the support of the entire body.

The International Federation of Journalists has appealed to the
EC to look into the crisis.


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

TUSKAR RESOURCES:  Oil Company Closure Is Imminent
--------------------------------------------------
Irish oil company Tuskar Resources is in danger of closing down
after one of its creditors, a Norwegian service company,
threatened to seek legal action for non-payment of revenues.

Earlier, Tuskar Resources told another creditor, Allied Energy,
to apply to the Dublin High court for the company to be run down.
Following this move, Tuskar's shares on the London stock market
fell by 90 percent, closing yesterday at 0.03p. The Guardian
reports that Tuskar shares attracted speculative investors last
year by trading as high as 3.75p.

The Guardian further states that Tuskar's Nigerian field in Obe
has ceased production due to a labor dispute with its local
partner. The firm attributes the market crash to this delay.  


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

L'ESPRESSO:  Stock Exchange Suspends Share Trading
--------------------------------------------------
Shares of Gruppo Editoriale L'Espresso SPA were suspended on
Wednesday after it fell by more than the allowed 10 percent
trading limit, Reuters said. According to Wright Investors'
Service profile, the Italian publishing group has a negative
working capital. Current liabilities amount to 345.07 million
Euros while total current assets are only 317.57 million Euros.

HDP, an Italian publishing group, was earlier suspended by the
bourse.  


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

DAEWOO POLAND:  Workers Hit By Lay-off
--------------------------------------
A massive lay-off will affect 912 employees of the Lublin-based
van manufacturing plant Daewoo Motor Polska (DMP). Poland A.M.
reports a total of 1,200 employees were scheduled to be dismissed
but the plant's trade unions were able to save almost 300
employees. According to reports, the trade unions did not sign
any agreements with management and are not planning any protest
action.

Solidarnosc trade union head Andrzej Chrzastowski told Poland
A.M. that they are accepting the decision. "We see the necessity
of the lay-offs, but we are doing our best to prevent any further
reductions," he said.

The factory is in dire financial condition after its parent
company, Daewoo of Korea, declared bankruptcy. Poor domestic car
sales could also be a factor.


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

MEDIA-MOST:  Court Hears Case Appeal vs. Gusinsky  
-------------------------------------------------
A Moscow city court will hear an appeal from the office of the
Prosecutor General against a decision from a lower court
dismissing a move to launch a criminal case against Russian media
tycoon Vladimir Gusinsky.

Itar-Tass says that on December 26, the Tverskoy district court
of Moscow ruled that the launching of the criminal case was
unlawful because Gusinsky's Media-Most and its creditor, Gazprom,
had reached an amicable agreement on debts. The Prosecutor
General will appeal on the decision, saying that the lower court
overstepped its authority when it began considering the merits of
the case before a preliminary investigation.   

Gusinsky is now under house arrest in Spain. The request for his
extradition will be decided on January 20. Gusinsky was accused
of misreporting assets and unlawfully receiving credits worth
five billion rubles and several hundred million U.S. dollars.


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

BANCO ARABE:  New Capital Infusion
----------------------------------
The goverments of Libya and Kuwait and Spain's two biggest banks
-- Banco Bilbao Vizcaya Argentaria and Banco Santander Central
Hispano -- agreed to pour 5.5 billion pesetas ($31.25 million) of
new capital into Banco Arabe Espanol (Aresbank). A bank
spokeswoman told Reuters that shareholders will meet again next
week to discuss a further capital increase.

Kuwait and Libya each own 30 percent of the bank and want to keep
it afloat while the Spanish partners favor closure and
liquidation. Banco Atlantico, Spain's state holding company SEPI
and the Algerian state-owned Credit Populaire d'Algerie also own
shares but do not constitute a majority. A spokesman for SEPI
said that "it is planning to reduce its holding" and aims "to
withdraw from Aresbank."

Set up in 1975 to facilitate trade between Spain and the Arab
countries, it has since run up losses and bad debts and now faces
an unexpected court demand for bail of 13.3 billion pesetas
($75.56 million) connected with a property that it embargoed.


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

ARENA LEISURE:  Bets on Expansion to Stem Losses
------------------------------------------------
Arena Leisure Plc said its losses for the six months ending
September 30 increased to 2.7 million pounds ($4.1 million), or
1.01 pence a share, from 161,000 pounds, or 0.08p a share, a year
ago.

To counter the downturn, Arena plans to expand into betting and
to acquire media rights. As part of a group of companies called
Go Racing, it is bidding for television rights to U.K.
horseracing. The group also includes British Sky Broadcasting Plc
and Channel 4. Arena Chairman Martin Pope hopes for positive
results to negotiations with the Racecourse Association this
January 17.

In a statement issued via the Regulatory News Service, he also
said that, "Arena will split its technology and racecourses
operations into two divisions, and name different management for
each unit."

Bloomberg reports that Arena shares fell 1 pence, or 0.9 percent,
to 105p, and the company announced it will not pay dividends.
Arena shares have fallen about 21 percent this month, and the
company may have to raise funds to cover costs related to Go
Racing.

Wright Investors' Service profile shows that at the end of 2000,
Arena Leisure Plc has negative working capital. Its current
liabilities amount to pounds 7.62 million while total current
assets were only pounds 4 million.


ADS TRANSPORT: Liquidation Proceedings
---------------------------------------
Company Name: ADS Transport Services Ltd
Company No: IR
Appointed on: 24/11/00
Type: Creditors
Appointed by: Members
Liquidators: Thomas Kavanagh
Firm Name: Kavanagh
Address: 14 Pembroke Road Ballsbridge
City Postcode: Dublin 4


C K MANAGEMENT: Liquidation Proceedings
----------------------------------------
Company Name: C K Management Ltd
Company No: 3141471
Com. Business: Property Holding
Appointed on: 24/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: David Thomas
IPno: 6348
Firm Name: Grant Thornton
Address: 11-13 Penhill Road
City Postcode: Cardiff CF11 9UP


EQUITABLE LIFE:  Rivals Lure Policyholders
------------------------------------------
Rival insurers are luring Equitable Life policyholders away from
the ailing firm. The offer is for them to reimburse the 10
percent exit penalty that Equitable is imposing on all customers
trying to leave its ailing with-profits fund.

Some leading insurers are waiving upfront fees to attempt
trustees to move top-up pension schemes away from Equitable.
Also, insurers are boosting allocation rates to help subsidize
the cost of moving from Equitable, according to The Times.     

Prudential, the second largest provider of AVCs after Equitable,
is denying they were offering irregular incentives. Actuaries say
the practice is widespread but none of the leading insurers will
acknowledge it publicly.   


GOETZ (UK): Liquidation Proceedings
------------------------------------
Company Name: Goetz (UK) Ltd
Previous Name: Gotz (UK) Ltd
Company No: 2645363
Com. Business: Construction Industry
Appointed on: 24/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Andrew J Pepper
IPno: Anthony P Supperstone 2703
Firm Name: BDO Stoy Hayward
Address: 8 Baker Street
City Postcode: London W1U 3LL


INTERSHOP:  Lower Profits Seen
------------------------------
Intershop has adjusted its expected sales for the year from Euros
133-143 million down to Euros 121-123 million after its fourth
quarter sales dropped from a projected Euros 40-50 million to
Euros 28-30 million.

Intershop also revealed that a possible net loss of Euros 37-39
million for the fiscal year is possible. Fourth quarter losses
could reach Euros 30-32 million.
  
John Griffith, managing director of Intershop UK is optimistic
that next week's meeting in Austria to discuss Intershop's 2001
kickoff will propel the company into the coming year, due largely
to its technical integration between Commerce One's buy-side
technology and its sell-side e-commerce enfinity product.

Griffiths told the Net Imperative that the profit warning was
caused by delays in closing deals with customers. He adds that
the reported slowdown is rooted largely in the U.S. and Asia-
Pacific markets, and that the UK and Europe are not as badly hit.
"My market is doing very well. I'm at 120 percent of my target,"
he said.

Wright Investors' Service profile says that as of December 1999,
Intershop's total liabilities (i.e., all monies owed) were 30.93
million Euros. The long-term debt to equity ratio is very low, at
only 0.00. percent.


JAYWOOD CONSTRUCTION: Liquidation Proceedings
----------------------------------------------
Company Name: Jaywood Construction Ltd
Company No: 3505847
Com. Business: Building Contractors
Appointed on: 24/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Andrew J Whelan
IPno: 8726
Firm Name: Marks Bloom
Address: 60-62 London Road
City Postcode: Kingston-u-Thames KT2 6QZ


LANDMARK:  DTI Inquiry into Closure Possible  
--------------------------------------------
A Glaslow Liberal Democrat MSP is making a call for a Department
of Trade and Industry inquiry into Landmark's collapse. Robert
Brown claimed that the closure looked like it had been planned in
advance: property was moved from Scottish stores to warehouses in
Essex, the doors of branches were closed, and staff were told not
to talk to anyone.

"Even if a fraction of this is true, then it merits a very close
examination by the authorities" he said. "If there have been
breaches of company law rules, these must be dealt with and money
or property recovered for the benefit of the customers and other
creditors. The time is long past when unscrupulous firms can get
away with stunts like this," he adds.

A spokeswoman for the DTI in London said, "We will consider the
letter. We look at every request made to us and we will respond
in due course."


L S CHALMERS: Liquidation Proceedings
--------------------------------------
Company Name: L S Chalmers Ltd
Company No: SC25983
Com. Business: Property Investments
Appointed on: 24/11/00
Type: Members
Appointed by: Members
Liquidators: Ian D Mitchell
IPno: 5123
Firm Name: Henderson Loggie
Address: Royal Exchange Panmure Street
City Postcode: Dundee DD1 1DZ


LIFESTAR LTD: Liquidation Proceedings
--------------------------------------
Company Name: Lifestar Ltd
Company No: SC
Appointed on: 24/11/00
Type: Creditors
Appointed by: Creditors
Liquidators: T M Burton
IPno: 8224
Firm Name: Ernst & Young
Address: George House 50 George Square
City Postcode: Glasgow G2 1RR


METROCAB:  Taxi Manufacturer Files For Administration  
-----------------------------------------------------
The taxi manufacturer Metrocab, known for its angular black cab,
has filed for administration in the high court, the Electronic
Telegraph reports. Leonard Curtis and Co., the court's chosen
administrator, hopes to sell the business and save some 170 jobs
at Metrocab's Tamworth factory and its Manchester and London
sales outlets.

Metrocab blamed "difficult market conditions in the taxi industry
and trading losses during the year" for its administration.
Observers say that increased diesel prices could be also be a
factor.  

Metrocab's rivals Manganese Bronze Holdings describes Metrocab's
move as short-term good news but concedes that they too are
experiencing a sales slowdown. Recently, Manganense Bronze
reshuffled its board after issuing a profit warning last
November. Jamie Borwick, the company's chief executive, moves to
chairman and Ian Pickering, finance director, becomes chief
executive.


MODERN CONSTRUCTION: Liquidation Proceedings
---------------------------------------------
Company Name: Modern Construction (UK) Ltd
Company No: 3589184
Com. Business: General Building Co
Appointed on: 24/11/00
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


OPEN ROAD: Liquidation Proceedings
-----------------------------------
Company Name: Open Road Ltd
Company No: 2757448
Com. Business: Publisher
Appointed on: 24/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Anthony J Sleight
IPno: 5343
Firm Name: Smith & Williamson
Address: 1 Riding House Street
City Postcode: London W1A 3AS
         

SHIPDESK:  Site's Liquidation to Affect Investors
-------------------------------------------------
Investors of the London-based chartering site are expected to
face hefty losses as Shipdesk goes into liquidation. Lloyd's List
International says this could be the start of a huge shakedown in
the shipping dot.com world. Investors are foreseen to lose tens
or even hundreds of millions of pounds in the first major
casualty in the sector.

Whitney & Co. and Citicorp Venture Capital have a reported stake
of 350 million dollars in Shipdesk while antfactory's investment
in the company has not been disclosed. Shipping financiers Tufton
Oceanic and OptiMark Technologies recently withdrew their
support, though neither is thought of as a large investor.


SUN BV:  British Unit Up for Sale
---------------------------------
Sun Healthcare Group Inc. has received court approval to sell Sun
BV, its British unit, to the subsidiary's own management in an
attempt to bypass some 300 million dollars in claims against the
subsidiary, which is also bankrupt.

The move, designed to cleanse Sun Healthcare of inter-company
debt worth $27 million, will also limit the company's exposure of
$261.36 million from Principal Healthcare Finance Ltd. and $33.1
million from Red Mountain Funding. By fully owning Sun BV, the
U.S. healthcare provider is exposed to whatever debt the company
owes, court documents revealed.  

According to the documents, "Sun BV has been and continues to
generate negative cash flows and, as a result of its trading
performance, corporate structure and lease guarantees, no buyer
was interested in pursuing an acquisition of the U.K. business at
a positive equity value."

The U.K. unit owns and operates 147 long-term care facilities in
England, Scotland, Wales and Northern Ireland, and its Sunscript
UK Ltd. and Sunchoice UK Ltd. Subsidiaries also provide related
healthcare services, according to The Deal.



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,
Jessie Elumba and Cristina Pernites Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2754.

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