/raid1/www/Hosts/bankrupt/TCREUR_Public/010112.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
Friday, January 12, 2001, Vol. 2, No. 9
Headlines
* B E L G I U M *
LERNOUT & HAUSPIE: Asian Units Closing Down
* C Z E C H R E P U B L I C *
DAEWOO AVIA: Selling Assets to Iveco of Italy, Subject to Creditor Approval
MANUFAKTURA PIKENHAMMER: Three Bidders Show Interest in Porcelain Firm
* F R A N C E *
AIRANESPACE: Year-End Losses at Euros200 Million
INTERCALL: Court Receives Takeover Bids
* G E R M A N Y *
EM.TV: Investigation On Insider Trading
WOHNUNGSBAUGESELLSCHAFT STUTTGART: Former Employees Face Fraud Raps
* H U N G A R Y *
POSTABANK RT: Shareholders Sue Bank's Auditors
* P O L A N D *
HUTA KATOWICE: Request For State Assistance
* R U S S I A *
NTV: American Wants 25 Percent Share of Russian Television Network
* U N I T E D K I N G D O M *
BAE SYSTEMS: Sales Declines & Massive Lay-offs Reported
EQUITABLE LIFE: Compromise Deal Nears Completion
MARKS & SPENCER: Workers Take Unpaid Leave
MAXCREST LTD: Liquidation Proceedings
METALSTOCK LTD: Liquidation Proceedings
MILLENIUM DOME: National Audit Office to Examine Sale
NIGHTSHADE FASHIONS: Liquidation Proceedings
PENISTONE INSURANCE: Liquidation Proceedings
PROPERTY & RETAILING: Liquidation Proceedings
SERVASTEEL LTD: Liquidation Proceedings
SINA TRADING: Liquidation Proceedings
TELECOM COVERS: Liquidation Proceedings
THAI ME: Liquidation Proceedings
TOYZONE: Struggling to Survive in the World of E-Tailing
VENJAKOB (GB): Liquidation Proceedings
VERSAILLES: More Investors Pursue Legal Action
=============
B E L G I U M
=============
LERNOUT & HAUSPIE: Asian Units Closing Down
-------------------------------------------
Lernout & Hauspie Speech Products NV will close down two of its Asian units
after these divisions were suspected of adopting unconventional accounting
practices leading to the company's inflated revenues. The Belgian parent
company ordered the closure of its South Korean division, while activities on
its Singaporean unit will be severely cut.
The Wall Street Journal suggests that closing these units will help the
company regain its reputable status and assist in its fiscal recovery. "Its
time to move on. The new L&H has the chance to emerge as a leaner, more
efficient and more profitable company," L&H CEO John Duerden says.
===========================
C Z E C H R E P U B L I C
============================
DAEWOO AVIA: Selling Assets to Iveco of Italy, Subject to Creditor Approval
---------------------------------------------------------------------------
Parent company Daewoo Motors of South Korea has chosen Iveco of Italy to be
the owner of Daewoo Avia. The Czech News Agency said that the approval to sell
Daewoo Avia to the Italian lorry maker was made on December 27, 2000. The
economic weekly Euro writes, Daewoo Motors Korea chose Iveco over Renault of
France and Swedish lorry maker Scania.
The sale however is subject to court approval, as Daewoo Motors Korea is under
forced administration. If Iveco's offer is not satisfying to Daewoo
creditors, the sale could be cancelled. Iveco has yet to reveal its year-end
figures, but a loss of Kc400 million is expected.
Daewoo Avia dismissed 397 employees last year and is now short of operating
capital. A moderate profit is seen from the sale of 3,000 lories of the new D-
series.
MANUFAKTURA PIKENHAMMER: Three Bidders Show Interest in Porcelain Firm
----------------------------------------------------------------------
Hospodarske Noviny & World Reporter relates that three companies are
interested in acquiring the bankrupt Czech porcelain manufacturing company
Manufaktura Pirkenhammer. Two investors, the news service hints, come from
Germany and one is from the Czech region of Kravoly. The company is
reportedly worth Kcs 40 million, the report indicates.
===========
F R A N C E
===========
AIRANESPACE: Year-End Losses at Euros200 Million
------------------------------------------------
Arianespace, the European satellite-launching consortium, told the financial
press this week that the company suffered losses amounting to Euros200
million. Company president Jean-Marie Luton said heavy investments in the
group's Ariane-5 rocket launcher contributed to the loss. He added, Reuters
reports, that Arianespace competes with International Launch Services (ILS)
controlled by Lockheed, and Sea Launch headed by Boeing Co.
In 1999, Arianespace earned profits of 7.3 million euros on revenues of 976
million euros. "We find ourselves in a temporarily difficult situation for
which we have been prepared for a long time," Mr. Luton told reporters for
Deutsche Presse-Agentur. "However, without obviously being able to amortise
all our costs, we hope to achieve financial equilibrium as of 2001."
Arianespace's 53 shareholders are led by the French space agency Centre
National d'Etudes Spatiales, with 32 percent, satellite maker Astrium holds 16
percent, European aerospace group EADS with 9 percent, and engine-maker Snecma
with eight percent.
INTERCALL: Court Receives Takeover Bids
----------------------------------------
A court in Nanterre will choose in six weeks which of the four bidders will
control the French telecommunications service provider Intercall.
According to Les Echos, the court received the offers last January 5. Bidders
include Libertysurf, The Phone House, and a Belgian fund. Deutsche Telekom is
not on the list although it earlier expressed interest in acquiring Intercall.
As of December 1999, Wright Investors Service Profile said that the company
owes Euros8.04 million and liabilities total Euros31.70 million. Trading of
its shares has been suspended since January 5.
Intercall is a French provider of pre-paid phone services.
=============
G E R M A N Y
=============
EM.TV: Investigation On Insider Trading
---------------------------------------
Senior prosecutor Manfred Wick of the Munich prosecution office told
Handelsblatt last Wednesday, January 10, there is no evidence yet of
wrongdoing against EM.TV & Merchandising AG. He said that documents examined
so far show no evidence against E.M.TV, its chairman Thomas Haffa, and his
brother former Chief Financial Officer Florian Haffa. However, the
investigation continues.
Shareholders are also planning to sue the company for damages after it
withheld vital information regarding the profit warning it issued late last
year. Lawyers in the case argue that E.M.TV. misled the shareholders by
informing them too late about the losses incurred by the company in 2000.
WOHNUNGSBAUGESELLSCHAFT STUTTGART: Former Employees Face Fraud Raps
-------------------------------------------------------------------
Three former employees of the insolvent German property company
Wohnungsbaugesellschaft Stuttgart are facing fraud charges in a local court,
Die Welt & World Reporter said. The former employees - a managing director, a
clerk and a trustee - issued property funds on the capital market and
investors were not thoroughly informed over the composition of certain
expenditures. Die Welt & World Reporter say damages amount to DM205 million.
The court will render its decision June 27, 2001.
=============
H U N G A R Y
=============
POSTABANK RT: Shareholders Sue Bank's Auditors
-----------------------------------------
Major shareholders of Postabank Rt will file a Ft 100 billion lawsuit against
the bank's auditors, the Hungary A.M. said. The lawsuit stems from audit
reports between 1995 and 1998 declaring the bank's financial condition as
healthy. The shareholders -- State Privatization and Holding Co. (APV Rt), the
Hungarian Development Bank, Magyar Posta Rt, Szerencsejt‚k Rt. -- claim that
between 1997 and 1998, they lost billions through the banks consolidation and
capital investment.
The Hungary A.M. report named the auditors as the Hungarian subsidiaries of
Deloitte & Touche and Arthur Andersen.
===========
P O L A N D
===========
HUTA KATOWICE: Request For State Assistance
-------------------------------------------
Huta Katowice (HK) is asking the Treasury Ministry for zl.660 million as
financial aid to keep the troubled steel mill running. The management board
also asked the company's creditors for a suspension of debt payment for the
next two years, thereby saving the company zl.20 million. According to Poland
A.M. the Treasury Ministry has expressed opposition to the idea.
HK head Miroslaw Wrobel said, HK's problem with short-term financing and the
company's privatization issue need immediate resolution. If these are not
settled by March, the company could cease operations.
===========
R U S S I A
===========
NTV: American Wants 25 Percent Share of Russian Television Network
------------------------------------------------------------------
American media entrepreneur Ted Turner is in talks to acquire a 25 percent
stake in the Russian television network NTV, a subsidiary of Media-Most owned
by tycoon Vladimir Guzinsky. The Wall Street Journal quotes a Turner
representative as saying that Turner, who is vice chairman of Time Warner
Inc., has always shown a keen interest in Russia. He adds that this is "a
personal investment of Turner, and not connected to America Online Inc. or
Time Warner Inc.
Meanwhile, Russian President Vladimir Putin, a Gusinsky critic, is expected to
approve Turner's partial acquisition of NTV. In the past, Putin accused
Guzinsky of questionable business dealings. Guzinsky counters that Putin is
trying to limit press freedom - the fraud charges are intended to harass him.
===========================
U N I T E D K I N G D O M
===========================
BAE SYSTEMS: Sales Declines & Massive Lay-offs Reported
-------------------------------------------------------
The slowdown in orders for military aircraft is causing a drop in profits for
the aerospace and defense group BAE Systems. The company is blaming this for
the planned dismissal of 2,000 workers in the Brough, Wharton and Samlesbury
factories. Unions representing BAE workers will soon learn the details of a
job reduction program aimed at restoring profits.
The Financial Times says that BAE Systems suffered a 25 percent stock
devaluation, decreasing the company's value by more that pounds 2.7 billion.
"Expected orders did not appear, thereby creating a hole," BAE chief executive
John Weston said.
BAE forecasts no profits in 2001 and 2002. Growth is expected to return in
2003, and sales of military aircraft in 2004. Analysts say income from BAE's
20 percent stake in Airbus would be insufficient to cover for the poor
performance of the defense business.
EQUITABLE LIFE: Compromise Deal Nears Completion
-------------------------------------------------
A compromise deal to cap Equitable Life's liability to shareholders is being
endorsed by the Financial Services Authority (FSA), members' groups and
Equitable itself. Stuart Bayliss, head of the Equitable Life Guaranteed
Annuity Action Group said, "everybody involved wants some form of a compromise
that would break the deadlock." According to Reuters, this could revive
investor interest in the troubled insurer.
Equitable was left with a pounds 1.5 billion in liability after the House of
Lords ruled that Equitable's act of cutting-off premiums to holders of
guaranteed annuities is illegal. Bidders deserted talks in after realizing
that the liabilities were uncapped. Non-guaranteed members will have to
shoulder the bonuses paid to holders of guaranteed policies. Equitable hoped
that a buyer could ensure that policyholders would not suffer.
Bayliss said negotiations are on for the level of the cap. "All sides are
working on the same objective," and a deal could be reached within days or a
week at the most.
MARKS & SPENCER: Workers Take Unpaid Leave
------------------------------------------
Marks & Spencer is asking its employees to take unpaid leave after sales
during the holidays dipped. A spokesman for M&S say that this is normal
business practice. She told The Times that "in low trading periods we often
give people the option to take unpaid leave. Usually we get more people
applying for it than we want." She says the arrangement is a "store-specific
thing" and decisions are made on a local level. Managers in the 300 branches
across the country will make their own decision regarding staffing procedures.
There is no compunction on anybody's part to take it," the spokeswoman said.
An employee in one of the biggest M&S stores in London said this has happened
before but not in this scale: jokes about a three-day workweek are
circulating.
M&S chairman Luc Vandevelde is giving himself two years to reverse the
negative sales trend. A year into the job, analysts sense little change.
MAXCREST LTD: Liquidation Proceedings
--------------------------------------
Company Name: Maxcrest Ltd
Previous Name:
Company No: 1236050
Com. Business: Traders in Yarn/Fabrics
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Jonathan R Booth
IPno: 7486
Firm Name: Parkin S Booth & Co
Address: 44 Old Hall Street
City Postcode: Liverpool L3 9EB
METALSTOCK LTD: Liquidation Proceedings
----------------------------------------
Company Name: Metalstock Ltd
Previous Name:
Company No: 1319425
Com. Business: Dealers in Steel of all kinds
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors
Liquidators: David A Rolph
IPno: 5930
Firm Name: Moore Stephens Booth White
Address: 3-5 Rickmansworth Road
City Postcode: Watford WD18 0GX
MILLENIUM DOME: National Audit Office to Examine Sale
-----------------------------------------------------
The National Audit Office announced that it will examine the sale of the
Milllenium Dome, BBC News said. Critics of the proposed pounds 125 million
sale hope "preliminary work" will become a full inquiry. The NAO performs this
role regularly; it produces reports on sales of major public assets and
government properties.
NIGHTSHADE FASHIONS: Liquidation Proceedings
---------------------------------------------
Company Name: Nightshade Fashions Ltd
Previous Name:
Company No: 3147326
Com. Business: CMT
Appointed on: 30/11/00
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
PENISTONE INSURANCE: Liquidation Proceedings
---------------------------------------------
Company Name: Penistone Insurance Brokers Ltd
Previous Name:
Company No:
Com. Business: Insurance Brokers
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: John Russell
IPno: 5544 Allan Cooper 5546
Firm Name: Poppleton & Appleby
Address: 93 Queen Street
City Postcode: Sheffield S1 1WF
PROPERTY & RETAILING: Liquidation Proceedings
----------------------------------------------
Company Name: Property & Retailing Co Plc - The
Previous Name:
Company No: 1969728
Com. Business: Property Co
Appointed on: 30/11/00
Type: Members
Appointed by: Members
Liquidators: David Rubin
IPno: 2591
Firm Name: David Rubin & Co
Address: Pearl Assurance House 319 Ballards Lane
City Postcode: London N12 8LY
SERVASTEEL LTD: Liquidation Proceedings
----------------------------------------
Company Name: Servasteel Ltd
Previous Name:
Company No: 1154339
Com. Business: Steel Stockholders
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Philip Sykes
IPno: 6119 Roderick G Butcher 8834
Firm Name: Moore Stephens Booth White
Address: 1 Snow Hill
City Postcode: London EC1A 2EN
SINA TRADING: Liquidation Proceedings
--------------------------------------
Company Name: Sina Trading Ltd
Previous Name:
Company No: 3007329
Com. Business: CMT
Appointed on: 30/11/00
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
TELECOM COVERS: Liquidation Proceedings
----------------------------------------
Company Name: Telecom Covers Ltd
Previous Name:
Company No: 3803554
Com. Business: Manufacture Telecom Covers
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Peter W Engel
IPno: 8103 John W Davies 6425
Firm Name: Solomon Hare
Address: Oakfield House Oakfield Grove
City Postcode: Bristol BS8 2BN
THAI ME: Liquidation Proceedings
---------------------------------
Company Name: Thai Me Down Ltd
Previous Name:
Company No: IR 280167
Com. Business:
Appointed on: 30/11/00
Type: Members
Appointed by: Creditors
Liquidators: Michael Butler
IPno:
Firm Name: Butler & Co
Address: 49 Fitzwilliam Square
City Postcode: Dublin 2
TOYZONE: Struggling to Survive in the World of E-Tailing
--------------------------------------------------------
After its high profile launch 18 months ago, the e-tailing toy company Toyzone
is now struggling to survive as an independent business, the Observer reports.
Toyzone's chief executive Paul Miller said, "a standalone Internet site
operating just in Britain is hard to push through." He adds that Toyzone has
to broaden its product range or sell out to a medium sized retailer. Last
Christmas, three key staff members left the company, adding to its
vulnerability. Among these are Jo Hall, its managing director, formerly of
Toys 'R' Us, and Peter Norris, its co-founder.
Just last week, Toyzone's main rival eToys closed shop after running out of
cash.
VENJAKOB (GB): Liquidation Proceedings
--------------------------------------
Company Name: Venjakob (GB) Ltd
Previous Name:
Company No: 2902106
Com. Business: Engineering Services
Appointed on: 30/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: A H Beckingham
IPno: 8683 R W Birchall 6623
Firm Name: PricewaterhouseCoopers
Address: 31 Great George Street
City Postcode: Bristol BS1 5QD
City Postcode: London N3 2HS
VERSAILLES: More Investors Pursue Legal Action
----------------------------------------------
Hundreds of Versailles investors are planing to join a small group of
shareholders seeking compensation for lost investments.
Chris Tagg of Houghton & Co. said that they have received hundreds of
inquiries about the case Houghton & Co. launched in behalf of the angry
investors. Tagg, who heads the case said, most shareholders have lost between
pounds 2,000 to pounds 10,000 when the firm closed last year. They are asking
for compensation from former chairman and chief executive Carl Cushnie.
According to the Financial Times, Cushnie sold pounds 29 million worth of
shares shortly before PricewaterhouseCoopers (PwC) forced Versailles into
receivership.
Cushnie is denying any wrongdoing, but Frederick Clough, the firm's former
finance director, is facing fraud charges amounting to pounds 50 million.
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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Information contained herein is obtained from sources believed to be reliable,
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information, contact Christopher Beard at 301/951-6400.
* * * End of Transmission * * *