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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

         Thursday, January 11, 2001, Vol. 2, No. 8

                        Headlines

B E L G I U M

LERNOUT & HAUSPIE:  Court Grants Bankruptcy Protection
LERNOUT & HAUSPIE:  More Losses Seen in 2001
SABENA AIRLINES:  Full Implementation of Cost Cutting Scheme


C Z E C H   R E P U B L I C

KOMERCNI BANKA:  Bidders Examine Bank Accounts


F R A N C E

SENSEMAT:  Court to Examine Two Takeover Bids


G E R M A N Y

EM.TV: Management Change
GIGABELL AG:  Microboss Proceeds with Takeover
INTERSHOP COMMUNICATIONS:  Open Market Files Patent Lawsuit


H U N G A R Y

MALEV AIRLINES:  Investors Submit Proposals


P O L A N D

DAEWOO POLAND:  Pol-Mot Takes Offer


R U S S I A

MEDIA-MOST:  Tax Authorities Seek Liquidation of Subsidiary


U N I T E D   K I N G D O M

B A T TRANSPORT: Liquidation Proceedings
BLOOBELLS LTD: Liquidation Proceedings
CREAN HOURIHAN: Liquidation Proceedings
DAKS SIMPSON:  Workforce Cut by One-third
DIRECT MEDIA: Liquidation Proceedings

EASYLINE FASHIONS: Liquidation Proceedings
EQUITABLE LIFE:  Break-up Sale
H SICHEL: Liquidation Proceedings
JONJO DEVELOPMENT: Liquidation Proceedings
KIDNEY CARE: Liquidation Proceedings

MILLENIUM DOME:  Increase in Reserves
MILLENIUM DOME:  Officials Defend Legacy Contract
M & J CARPENTRY: Liquidation Proceedings
NISSAN UK:  Profits for 2000 Dim


S W E D E N

SANDVIK UK:  248 Workers to Lose Jobs at UK Steel Plants


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

LERNOUT & HAUSPIE:  Court Grants Bankruptcy Protection
------------------------------------------------------
Court chairman Michel Handschoewerker of the commercial court in
Ypres HAS granted Lernout & Hauspie (L&H) a suspension of
payments for a six-month period to protect the Belgian speech
technology group from its creditors.

According to a Reuters report, the court granted concordaat,
Belgium's version of Chapter 11 protection, until June 30 to the
firm. L&H is already operating under bankruptcy protection in the
U.S. after an internal audit revealed the company overstated its
income by as much as 277 million dollars. The company is also
facing numerous lawsuits from shareholders claiming
misrepresentation of revenues.

L&H is currently facing a U.S. and European securities
regulations probe on the matter. Trading of its stocks has been
banned from Nasdaq and Easdaq since it lost virtually all of its
value.

Newsbytes News Network said the Belgian company has received
"expressions of interest" about the purchase of certain assets,
including the Belgian/French translation subsidiary Mendez,
valued at more than $150 million.


LERNOUT & HAUSPIE:  More Losses Seen in 2001
--------------------------------------------
Lernout & Hauspie chief executive John Duerden predicts operating
losses for the company in 2001. In a news conference, Duerden
said the firm might suffer losses of up to $25 million in 2001.
Revenue projection for 2000 is $380 million while the extent of
its losses for the same period was unspecified.

Reuters reports that the company is optimistic for the future; it
is launching an aggressive restructuring plan designed to restore
profits.  

Duerden said "We see profit on an operating level as we move into
2002," while L&H chairman Roel Pieper said the company would have
a positive cash flow by that time. The speech recognition company
has said it will restate results for 1998, 1999 and the first
half of 2000.     

L&H acquired U.S.-based Dragon Systems and Dictatphone Corp.,
which in 1999 had posted revenues of $61 million and $350
million, respectively.


SABENA AIRLINES:  Full Implementation of Cost Cutting Scheme
------------------------------------------------------------
Sabena spokesman Wilfried Remans told Reuters that Sabena, the
Belgian national airline, plans to fully implement a cost-cutting
scheme called Blue Sky that is designed to reduce operating costs
in 2001 to about 1.3 billion Belgian francs from a previous
forecast of about 15.7 billion Belgian francs.

The recovery plan, which was partially implemented in October,
will include selling assets that do not contribute to
profitability although these were not specified. Sabena also aims
to return the airline to credit worthiness by 2003. Swiss airline
holding company SAirGroup owns 49.5 percent of Sabena.


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

KOMERCNI BANKA:  Bidders Examine Bank Accounts
----------------------------------------------
The four bidders for a 60 percent stake in Czech Komercni Banka
will inspect the bank's accounts next week. Reuters named Credit
Agricole, Societe Generale, HypoVereinsbank and Unicredito as the
four bidders that obtained the Czech government's approval.

Marie Ruzickova, a spokeswoman for Komercni, said the process of
examining the accounts of the country's largest bank would last
until the end of February or early March. She added that a copy
of the bank's financial statements, available in March or April,
would be furnished to the investors before they submit their
bids.

According to Wright Investors Service, the company's last quarter
earnings stood at -17.7. A -357 mark was registered as the
previous year's earnings.  


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

SENSEMAT:  Court to Examine Two Takeover Bids
---------------------------------------------
A court in the French southwestern region of Auch will render its
verdict on the two takeover bids for French tool specialist
Sensemat on January 16. The rival bids come from Valois and
Cargo, a manufacturing firm in neighboring Toulouse. Les Echos
reports that a takeover will hit Sensemat's 500 employees because
both bids propose job cuts.

Sensemat went into liquidation and receivership in September
2000. Its Outillage subsidiary was pointed as the source of the
firm's difficulties, which started to lose money in 1998.

The diversified group includes publishing; the production and
distribution of electric and manual tools; car accessories;
cycles and watches.


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

EM.TV: Management Change
------------------------
EM.TV chairman Nickolaus Becker has told the Handelsblatt
newspaper that he would not insist on staying on if this would
stand in the way of the deal with Kirch. This comes after reports
saying the talks have deteriorated over differences with Kirch
Deputy Chairman Dieter Hahn.

Michael Birnbaum, a spokesman for the German media group EM.TV &
Merchandising AG said the talks are proceeding despite the media
reports. Referring to Kirch, he added: "One would expect the
second-largest individual shareholder to want a voice on the
board."

The deal with Kirch would allow the company to control 25.1
percent of the voting rights in EM.TV and about half of EM.TV's
stake in the Formula One racing circuit.  


GIGABELL AG:  Microboss Proceeds with Takeover
----------------------------------------------
German software company Microboss Software AG will proceed with
its plan to purchase Gigabell AG, but denied it made offers to
acquire Infomatec AG, Teamwork, and Music-Music-Music.

An article in Die Welt & World Reporter dated January 8 reported
that Microboss made Gigabell declare insolvency on November 1,
2000, after it met the requirements for a Neuer Markt flotation,
which also included the production of quarterly reports and
bookkeeping according to internationally recognized standards.

Microboss is aspiring for a Neuer Markt listing; it reportedly
believes that offering one of its shares for twenty of Gigabell's
is the quickest way to bring this about.


INTERSHOP COMMUNICATIONS:  Open Market Files Patent Lawsuit
-----------------------------------------------------------
Open Market, Inc. has filed a patent infringement lawsuit against
Intershop Communications, Inc. in the U.S. District Court for the
District of Delaware. Open Market, which provides eBusiness
applications, is seeking injunctive relief and damages.

In its complaint, Open Market alleges that Intershop's software
products infringe upon Open Market's intellectual property,
specifically three Open Market patents: U.S. Patent No. 5,708,780
entitled "Internet Server Access Control and Monitoring System";
and U.S. Patents Nos. 5,715,314 and 5,909,492, both entitled
"Network Sales System."

"Open Market was a pioneer in developing various technologies to
facilitate electronic commerce on the Internet and has developed
a portfolio of patents covering these technologies," said Harland
LaVigne, chairman, president and CEO of Open Market. "We are
willing to grant licenses for the use of our patented
technologies. And, where necessary and appropriate, we will take
steps to ensure that our patent rights are respected."


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

MALEV AIRLINES:  Investors Submit Proposals
-------------------------------------------
The Hungarian State Privatization and Holding Co. (APV Rt) says
20 carriers are interested in acquiring a stake in Malev
Hungarian Airlines Rt. The state asset administrator holds 97
percent of Malev but will retain only 50 percent plus one vote
after the sale.

Earlier, APV granted four airlines -- Air France, KLM Royal Dutch
Airlines, Swissair and SAS Scandinavian Airlines -- access to
Malev's financial statements. The four are known to have signed
confidentiality agreements as a pre-condition.

According to the Budapest Business Journal, the board is
evaluating the bids and will announce a decision in February or
March. It also hopes to hold a second tender, limited to
Hungarian investors, later in the year.


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

DAEWOO POLAND:  Pol-Mot Takes Offer
-----------------------------------
Pol-mot Holding wants to purchase a 51 percent stake in Daewoo
Motor Polska (DMP). The Polish automotive and agro-technology
company use a capital increase for the purchase but has attached
conditions to the planned acquisition.

According to Puls Biznesu, Pol-Mot wants the Polish government to
guarantee a $130 million loan necessary for DMP's development and
introduce new legislation to limit the import of used cars and
vehicles. Reports indicate that the government is interested in
the venture.

Poland A.M. reports that DMP is undergoing restructuring. It has
reduced its departments from 113 to 87 and slashed managerial
positions by 64 percent. As part of its new organizational
structure, it also plans to let go of 912 employees and sell some
of its assets.

DMP is looking for an investor who is willing to shell out at
least $50 million. It needs this amount to start production of
the new LD 100 model.


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

MEDIA-MOST:  Tax Authorities Seek Liquidation
---------------------------------------------
A Moscow court will hear on Wednesday, January 10, a suit filed
by local tax authorities against TNT-Teleset, a subsidiary of
Media-Most, which is owned by media tycoon Vladimir Guzinsky. The
suit is seeking the liquidation of the company for insolvency
citing the discrepancy of its net assets to the obligatory
minimal authorized capital.

The court is also considering similar action against two other
Media-Most subsidiaries: NTV and NTV Plus. According to Itar-
Tass, the court will hear the cases on January 17.

The claims were filed at the tax inspectorate of the Central
Administrative District of Moscow. Tatiana Luzhina, head of the
tax inspectorate said that the matter could be settled even
before the court hearings, because "the violation is easy to
eliminate."


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

B A T TRANSPORT: Liquidation Proceedings
-----------------------------------------
Company Name: B A T Transport (Luton) Ltd
Company No: 3163835
Com. Business: Couriers
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Geoffrey Martin
IPno: 2207
Firm Name: Geoffrey Martin & Co
Address: St James House 28 Park Place
City Postcode: Leeds LS1 2SP


BLOOBELLS LTD: Liquidation Proceedings
---------------------------------------
Company Name: Bloobells Ltd
Company No: SC
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors
Liquidators: Bryan A Jackson
IPno: 5194
Firm Name: Pannell Kerr Forster
Address: 78 Carlton Place
City Postcode: Glasgow G5 9TH


CREAN HOURIHAN: Liquidation Proceedings
----------------------------------------
Company Name: Crean Hourihan Construction Ltd
Company No: 2146549
Com. Business: General Builders
Appointed on: 30/11/00
Type: Members
Appointed by: Members
Liquidators: Peter R Dewey
IPno: 7806
Firm Name: KTS Dewey
Address: 17 St Andrews Crescent
City Postcode: Cardiff CF10 3DB


DAKS SIMPSON:  Workforce Cut by One-third
-----------------------------------------
Clothing manufacturer Daks Simpson will trim its workforce by
one-third after losing a contract with Mark's and Spencer. A
total of 262 jobs will be lost on top of the 260 workers who were
dismissed last summer at the company's plant in Polbeth, West
Calder. The Times said the 262 employees work in the company's
manufacturing operation in Larkhall and Lanarkshire.


DIRECT MEDIA: Liquidation Proceedings
--------------------------------------
Company Name: Direct Media Associates Ltd
Company No: 3762029
Com. Business: Advertising/Design
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: A H Tomlinson
IPno: 6585
Firm Name: A H Tomlinson & Co
Address: Blakesley Lodge 2 Green Street
City Postcode: Lower Sunbury TW16 6RN


EASYLINE FASHIONS: Liquidation Proceedings
-------------------------------------------
Company Name: Easyline Fashions Ltd
Company No: 3668557
Com. Business: Garment Manufacture
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Kirankumar Mistry
IPno: 8795 John P Harlow 8319
Firm Name: HKM Harlow Khandhia Mistry
Address: The Old Mill 9 Soar Lane
City Postcode: Leicester LE3 5DE


EQUITABLE LIFE:  Break-up Sale
------------------------------
Although Equitable prefers to be sold as a whole entity, the sale
of its asset management arm, its 400-strong sales force, and
third-party administration division will be finalized within
weeks.

The Times named the potential bidders as Eureko, the pan-European
insurance alliance; AMP, the Australian owner of Pearl and NPI;
GE Capital and Aegon, the Dutch owner of Scottish Equitable.
Prudential and AXA are reportedly not participating in the break
up sale. Equitable's asset management arm is said to be worth 300
million pounds, though the final price will depend on the
structure of the deal.

Equitable is now in talks with members of the Equitable Life
Action Group and the National Association of Pension Funds to
seek a compromise from holders of guaranteed annuity rate options
(GARs) and additional voluntary contribution (AVC) schemes. The
dialogue is set to find ways to limit Equitable's liability to
its policyholders. Analysts say that a compromise deal would make
the troubled firm more attractive to potential buyers.


H SICHEL: Liquidation Proceedings
----------------------------------
Company Name: H Sichel & Sons Ltd
Company No: 230920
Com. Business: Dormant
Appointed on: 30/11/00
Type: Creditors
Appointed by: Members
Liquidators: Barry P Knights
IPno: 7503
Firm Name: Knights & Co
Address: Milford House 43-55 Milford Street
City Postcode: Salisbury SP1 2BP


JONJO DEVELOPMENT: Liquidation Proceedings
-------------------------------------------
Company Name: Jonjo Development Services Ltd
Company No: 2261486
Com. Business: Property Development/Management
Appointed on: 30/11/00
Type: Members
Appointed by: Members
Liquidators: Peter R Dewey
IPno: 7806
Firm Name: KTS Dewey
Address: 17 St Andrews Crescent
City Postcode: Cardiff CF10 3DB


KIDNEY CARE: Liquidation Proceedings
-------------------------------------
Company Name: Kidney Care Scotland Ltd
Company No: SC
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors
Liquidators: Gerald I Rankin
IPno: 5184
Firm Name: PricewaterhouseCoopers
Address: 1 Blythswood Square
City Postcode: Glasgow G2 4AD


MILLENIUM DOME:  Increase in Reserves
-------------------------------------
Millennium Dome Chairman David James told the Birmingham Post
that the Dome has made a "tremendous recovery." According to
James, it now has 10 million pounds in reserves compared to less
than 1 million pounds in spare cash when he took over in
September. "I'm sure that this is building up to be enough to get
me to a solvent liquidation when all debts are paid," he said.

Meanwhile, Dome Minister Lord Falconer has confirmed reports that
preferred bidder Legacy could pay for the site in installments.
Legacy, which wants to turn the site into a high-tech business
park, will likely make a down payment of 50 million pounds and
settle the balance over a period of years. Details of the deal
will be available by the middle of next month.

David James is convinced that the Dome remains a viable
entertainment and exhibition arena. He said that dismantling the
Greenwich attraction could cost more than 7 million pounds. Lord
Falconer said current work at the Dome was only to remove hired
equipment. These will be returned or penalties amounting to
millions of pounds would be incurred.


MILLENIUM DOME:  Officials Defend Legacy Contract
-------------------------------------------------
Dome Minister Lord Falconer is defending the government's
preferred bidder Legacy after reports accused the government of
selling the Dome too cheaply. The Birmingham Post quoted him as
saying that the Dome's 125 million pounds price tag is "value for
money."

According to Doras, the furor started when Robert Bourne, a
member of the Treasury Holdings said Legacy would profit from the
125 million pounds deal within three years by developing land
around the site owned by English Partnership.  

The Conservative Party has said his remarks constitute evidence
of the undercharging. The Party also suspects that Bourne's
donation of 100,000 pounds to the Labour Party over the last
three years led to the granting of the deal to Legacy.


M & J CARPENTRY: Liquidation Proceedings
-----------------------------------------
Company Name: M & J Carpentry & Joinery Ltd
Company No: 3693192
Com. Business: General Construction
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Simon G Paterson
IPno: 6856
Firm Name: Moore Stephens Booth White
Address: Victory House Admiralty Place
City Postcode: Chatham ME4 4QU


NISSAN UK:  Profits for 2000 Dim
--------------------------------
Nissan Motor chief executive Carlos Ghosn says profits for 2000
could be disappointing. Reuters has quoted Ghosn as saying "it
was practically impossible to make a profit in 2000 if you were
not manufacturing in euros."

Car manufacturers in Britain, such as Honda and Toyota, also
complained that the strength of the sterling is hurting European
operations. Last Monday Honda said it is expecting losses in its
UK unit but added that expansion plans will continue in hopes of
boosting exports.

Ghosn told FT.com that a meeting among Nissan's Japanese
executive committee would decide whether production of Micra, its
new generation small car, would continue in Britain. Reuters says
the meeting is scheduled for late January.


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S W E D E N
===========

SANDVIK UK:  248 Workers to Lose Jobs at UK Steel Plants
--------------------------------------------------------
Swedish engineering group Sandvik plans to close two UK steel
production plants in Chesterfield and Walsall, affecting 248
jobs, according to Annanova.

The plants, which operate under the name Sterling Tubes,
manufacture stainless steel tubes for Sandvik. The closure is
scheduled for sometime in August, when work will be moved to a
larger plant in Sweden.



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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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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