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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 22, 2001, Vol. 2, No. 15


                              Headlines


A U S T R I A

MOTENA.AT:  May Become Insolvent


B E L G I U M

LERNOUT & HAUSPIE:  In Acquisition Talks with DaimlerChrysler
LERNOUT & HAUSPIE:  Chairman of the Board Pieper Resigns
LERNOUT & HAUSPIE:  Shareholders May Sue Former Auditor KPMG
LERNOUT & HAUSPIE:  In Talks with KBC for New Credit Line
VOBIS:  Legal Proceedings Begin Against Management


C Z E C H   R E P U B L I C

POLDI-DRIN: Mossei Backs Out of Poldi-Drin Acquisition Tender


I R E L A N D

COURTAULDS LINGERIE:  250 Jobs to Go
EBEON:  Ebeon to Close all Offices; Lay Off 197


L U X E M B O U R G

LANDIS & GYR:  Goes Into Receivership


N E T H E R L A N D S

LETSBUYIT.COM:  Waits for White Knight in Shining Armor
LETSBUYIT.COM:  Says It Will Oppose Bankruptcy
LETSBUYIT.COM:  Sees Possibilities for Survival
LETSBUYIT.COM:  Administrators Apply for Bankruptcy


P O L A N D

DAEWOO-FSO:  Hopes for New Investor Have Not Dimmed


U N I T E D   K I N G D O M

A F JAMESON:  Liquidation Proceedings
ECCLE RIGGS:  Liquidation Proceedings
EQUITABLE LIFE:  Compromise Deal Unworkable, Advisers Warn
EURODIGITAL COMMUNICATIONS:  Liquidation Proceedings
HUNTINGDON LIFE:  May Get 20 Million Pounds from American Firm

LOOK LIVELY:  Liquidation Proceedings
MANNINGHAM ENVIRONMENT:  Liquidation Proceedings
MILLENIUM DOME:  Irish Company Is Possible Buyer
MILLENIUM DOME:  Sale Proceeds to be Divided
SCI ENTERTAINMENT:  Sci Shares Plummet

TECHLINE RESOURCES:  Liquidation Proceedings


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

MOTENA.AT:  May Become Insolvent
--------------------------------
Austrian Internet company Motena.at, which sells cars, is in
danger of insolvency, the Der Standard & World Reporter said on
Wednesday of last week.  

Telecommunications company Millennium Communication Network AG
(MCN), which has a 70 percent stake in Motena, is currently
negotiating for a buyer to take over its stake. MCN is run by
Millennium Tower constructor Georg Stumpf. The remaining 30
percent in Motena is owned by Cologne-based Motena Verwaltungs
GmbH.  

Rumors say car rental company Sixt's Internet subsidiary may be
interested in acquiring the stake. Sixt is Motena's biggest
supplier of used cars. MCN laid off two-thirds of its workers
after recording an annual loss of Sch 150 million.


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

LERNOUT & HAUSPIE:  In Acquisition Talks with DaimlerChrysler
-------------------------------------------------------------
A source close to DaimlerChrysler told Dow Jones Newswires that
talks to buy a part of financially troubled Belgian software
company Lernout & Hauspie Speech Products N.V. are at a
preliminary stage and that it is too early to discuss financial
terms. The business in question deals in voice recognition
technology for automobiles.  

Dow Jones quoted a source at L&H as saying, "It is clear...that
there is an external interest in these `mobile' activities,"
referring to activities that include technology for hands-free
use of phones and stereos in cars. The source reportedly said the
business could fetch as much as $250 million.

L&H filed for bankruptcy protection in the United States and
Belgium after admitting to having been involved in accounting
irregularities for over two years.


LERNOUT & HAUSPIE:  Chairman of the Board Pieper Resigns
--------------------------------------------------------
Business Wire, January 18, 2001

The Board of Directors of Lernout & Hauspie (EASDAQ: LHSP, OTC:
LHSPQ), a world leader in speech and language technology,
products and services, announced that Roel Pieper has resigned
his position as Chairman of the Board of Directors. A new board
of directors will be elected, and a new chairman will be
appointed, following an upcoming extraordinary shareholders
meeting, Business Wire reported Thursday.

Roel Pieper said: "I want to give L&H's new CEO, Philippe Bodson,
complete latitude to form a new management team that will guide
the company through the next stage of its recovery plan and
beyond. I fully support and have the utmost confidence in
Philippe, who is well qualified to lead this effort. In addition
to making room for new leadership, I wish to dedicate more of my
time to my position at Insight Capital and to my professorship at
the University of Twente in the Netherlands."

Philippe Bodson, President, Chief Executive Officer and Managing
Director, said: "Roel played a leading role in securing
reorganization protection for L&H in Europe and the U.S., which
has enabled our company to proceed with a recovery plan. We thank
Roel for his invaluable contribution toward rebuilding L&H and
understand his wishes to focus his energies on his venture
capital projects and teaching."

Separately, the Company also announced that board member Bernard
Vergnes, former President of Microsoft Europe, resigned two weeks
ago.


LERNOUT & HAUSPIE:  Shareholders May Sue Former Auditor KPMG
------------------------------------------------------------
Shareholders have turned their ire on former Lernout & Hauspie
Speech Products N.V. auditor KPMG International, bringing
lawsuits against the company. KPMG had vouched for the speech
recognition software company's financial health.

Michael F. Lange described the accounting problems at L&H as
being "so pervasive." He said the problems "included so many
aspects of the business" that "there had to be red flags."  Lange
is a partner at Berman, DeValerio & Pease, which, according to
the Wall Street Journal, is one of the law firms representing
shareholders in the lawsuits seeking class-action status.

"You just don't lose $100 million," Lange said.

Securities lawyer Richard M. Phillips, of Kirkpatrick & Lockhart,
described the lawsuits as "a major piece of litigation."  He
added, "We're talking big potential exposure here."


LERNOUT & HAUSPIE:  In Talks with KBC for New Credit Line
---------------------------------------------------------
Belgian banking group KBC Bancassurance's spokesman Piet Jaspaert
told Reuters Wednesday the group was negotiating to establish a
credit line with troubled speech technology company Lernout &
Hauspie Speech Products N.V. Jaspaert did not provide details,
but said the negotiations may be completed soon.

Belgian newspaper De Financieel Economische Tijd said Thursday
the negotiations also involved Belgian-Dutch financial group
Fortis, which declined to comment. Fortis and KBC were part of a
five-bank syndicate that loaned $430 million to L&H for its
purchase of Dictaphone Corp last year. The bank called in their
loans in November of last year and talks to restructure the debt
were unsuccessful. L&H, which has $489.6 million in debt, filed
for bankruptcy protection in the United States and Belgium.

L&H said early in January it was negotiating to get up to $60
million debtor-in-possession financing.


VOBIS:  Legal Proceedings Begin Against Management
--------------------------------------------------
The caretaker management of Belgian computer materials
distributor Vobis began legal proceedings against the company in
Liege, La Libre Belgique & World Reporter said Friday.  

Eighteen Belgian stores were announced to have become insolvent
on October 20 last year and the caretaker management started
legal proceedings for embezzlement, economic infractions and
false accounting after finding liabilities of BFr200 million.

The Reporter also said caretaker management filed another case
against managers at French group Nexus Technologies and some
companies linked to Vobis shareholders.


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

POLDI-DRIN: Mossei Backs Out of Poldi-Drin Acquisition Tender
-------------------------------------------------------------
Poldi Ocel administrator Tomas Pelikan told Czech News Agency
(CTK) that Mossei International Holding backed out of the tender
for the acquisition of steel company Poldi-Drin on January 16
because of unclear ownership rights and related business risks.  
CTK said Pelikan was referring to a letter that Mossei had sent
him.

Pelikan said German company Spontan had filed a complaint that
cast a claim on all of Drin's property. "In its key petition for
the exclusion of property from bankruptcy assets, Spontan raised
an objection against bias and has effectively blocked the sale,"
Pelikan told CTK. He said bidders had been informed of the fact.

Pelikan and Konstrukcni oceli Poldi administrator Jirina Luzova
are going to ask Trinecke zelezarny, which had bid Kc265 million
and ranked after Mossei in the tender, to enter into the talks,
CTK relates. Mossei's bid was at Kc404 million. Trinecke
zelezarny had leased the Poldi-Drin premises from bankruptcy
administrators in May 1998. They had recommenced production of
rolled steel in August 1998.

Poldi-Drin's assets come from the bankruptcy assets of Poldi Ocel
and Konstrukni ocel Poldi, both of which were declared bankruptcy
in 1997 due to long-term insolvency.


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

COURTAULDS LINGERIE:  250 Jobs to Go
------------------------------------
Courtaults Lingerie is closing down its plant in Portadown, Co.
Armagh and its manufacturing base in Morecambe, Lancashire,
Ananova relates. One hundred thirty-seven of the workers in
Portadown will be laid off; 115 jobs will be cut in Morecambe.  
Both plants manufacture for troubled retailer Marks & Spencer.


EBEON:  Ebeon to Close all Offices; Lay Off 197
-----------------------------------------------
Dublin-based e-business company Ebeon closed all its offices and
will lay off 197 workers, a report by ElectricNews.Net said
Thursday. The company had failed to secure new funding. Eircom
has a 51 percent stake in Ebeon.

The report quoted an Ebeon Java technician as saying, "It's a
total shock. CEO Bill Donoghue was only telling the Sunday
Business Post about how we were going to have 200 extra staff
this time next year." He added, "Everyone is walking around in a
bewildered state. The entire board has been here since 6 a.m."  
Another source said Eircom had refused a funding request,
believed to be in the vicinity of EIP5 million, which led to the
decision to close down.

Ebeon, which has offices in Dublin, London, California, Milan and
New York, was established in 1994 as Trinity Commerce. Donoghue
was appointed CEO in 1998. Eircom paid IEP10 million for a 51
percent stake in the company in 1999, which renamed itself Ebeon
last year.

Eircom said it had agreed in December to provide additional funds
of IEP2 million for Ebeon on the condition that the other
shareholders of the remaining 49 percent stake in the company
match the figure. ElectricNews.Net's report quoted an
unidentified Eircom spokeswoman as saying, "We put up our
funding, but the B shareholders failed to do so." Eircom said,
"On the basis of the financial information available to us it
became clear that we could no longer supply information or
further funding for the company."

The Sunday Business Post said Ebeon's revenues were expected to
reach US$20 million in the 12 months to the end of March 2001.  
It relates Donoghue said that anticipated annual sales would be
US$200 million by 2003.  


===================
L U X E M B O U R G
===================

LANDIS & GYR:  Goes Into Receivership
-------------------------------------
General Manager Francois Gabella has revealed Landis & Gyr
Communication Group SA has gone into receivership after it failed
to make the repayment of a loan amounting to about SFr120 million
to a bank consortium led by Credit Suisse First Boston. The
L'Agefi Suisse reported January 12 that the firm is the holding
company for Swiss advertising group Landis & Gyr.  


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

LETSBUYIT.COM:  Waits for White Knight in Shining Armor
-------------------------------------------------------
Court-appointed trustee Van Doorne said it would seek to put
Letsbuyit.com into liquidation at Amsterdam's district court,
Reuters relates. Van Doorne also revealed the company was still
hoping for a white knight partnership, saying, "The present
management still sees chances for survival and has indicated it
will put forward a defense."

A report by The Financial Times quoted a creditor as saying, "We
signed an agreement with the trustees which gave Letsbuyit until
March 8 to sort out its financing. We have not been consulted
regarding the change and believe it is in our long-term interests
to give Letsbuyit the chance to continue trading." The creditor
reportedly plans to take legal action against trustees to stop
the bankruptcy proceedings.

L&H was reportedly in talks with French company Dealpartners.com
and Norway's Coshopper.com, and there were rumors that a
"positive" statement about the embattled company's future would
appear, but it never materialized.  


LETSBUYIT.COM:  Says It Will Oppose Bankruptcy
----------------------------------------------
Dutch legal firm Van Doorne, which was appointed to administer
Letbuyit.com's debt moratorium, said a statement the Internet
retailer would oppose Van Doorne's application for Letsbuyit's
bankruptcy.  

Internet retailer Letsbuyit.com announced it would oppose a
bankruptcy filing at a Friday hearing, Reuters said Thursday of
last week. The announcement triggered a dive in its market value
to below 4 million euros ($3.77 million) after the trading
suspension on the Frankfurt Neuer Markt was lifted Wednesday.

Van Doorne's statement said, "The present management still sees
chances for survival and has indicated it will put forward a
defence."  


LETSBUYIT.COM:  Sees Possibilities for Survival
-----------------------------------------------
LetsBuyIt.com released the following press release on January 17,
2001:

Administrators of LetsBuyIt.com NV request the district court at
Amsterdam for conversion of the suspension of payments into
bankruptcy Amsterdam, 17 January 2001 - The administrators of
Letsbuyit.com NV today filed a request with the Amsterdam
District Court for the conversion of the suspension of payments
into bankruptcy.

On 29 December 2000 Letsbuyit.com NV was granted a suspension of
payments requested by the Company's management at the urging of
the supervisory board. The administrators understand that the
request was inter alia motivated by the absence of a concrete
financing offer from existing or potential new shareholders, an
apparently essential and insurmountable difference of opinion on
the stategy forward between the then current management and the
supervisory board, and the high costs.

Since 21 July 2000 Letsbuyit.com NV has been listed at the
technology market (,Neuer Markt") of the Deutsche B"rse in
Frankfurt. After a suspension of trading on 29 December 2000,
trading was resumed on the first day for trading in 2001, the 2nd
January.

The commercial concept of Letsbuyit.com in summary means that
consumers order large numbers of products in a virtual internet
department store through so-called co-buys. The company and its
subsidiaries employ some 330 staff in, among others, the
Netherlands, England, Sweden, Germany and Italy.

The administrators of the company are with Van Doorne at
Amsterdam and have today filed with the Court the first public
report in the above suspension of payments.

The hearing on the request for the conversion will take place
this coming Friday 19 January. This does not imply that the
bankruptcy will be adjudicated. The current management see
possibilities for survival and have indicated that it shall argue
the case. (Company Press Release  January 17, 2001)


LETSBUYIT.COM:  Administrators Apply for Bankruptcy
---------------------------------------------------
The following statement was released by LetsBuyIt.com on January
17, 2001:

On account of their findings to date the administrators of
Letsbuyit.com N.V. have considered it necessary to apply to the
District Court at Amsterdam for the conversion of the suspension
of payments into bankruptcy. The application will be dealt with
at the Court's hearing of this coming Friday, 19 January 2001.


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

DAEWOO-FSO:  Hopes for New Investor Have Not Dimmed
---------------------------------------------------
Daewoo-FSO representatives have said they will not try to obtain
a $100 million loan for the construction of a plant to produce
Matiz engines, Poland A.M. related Thursday last week.  

Spokeswoman Krystyna Danilczyk said, "We do not want to make any
decision until a new strategic investor has come on board. This
directive came from Daewoo's headquarters in Korea." Matiz
engines have been supplied from Korea.  

Talks surfaced earlier last week that Kredyt Bank would not lead
a consortium of banks providing the loan, which the bank's press
office denied. Belgium's KBC Bank holds a stake of almost 30
percent in KBC Bank.


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

A F JAMESON:  Liquidation Proceedings
-------------------------------------
Company Name:   A F Jameson (Birmingham) Ltd
Company No:   1291428
Com. Business:   Sale Petrol & Oil/Motor Repairs
Appointed on:   19/12/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   K J Watkin
IPno: 5276
Firm Name:   K J Watkin & Co
Address:   Emerald House  20 Anchor Road  Aldridge
City Postcode:   Walsall  WS9 8PH


ECCLE RIGGS:  Liquidation Proceedings
-------------------------------------
Company Name:   Eccle Riggs Manor Hotel & Leisure Ltd
Company No:   3254990
Com. Business:   Hotel
Appointed on:   20/12/00
Type:   Members
Appointed by:   Members
Liquidators:   David M Walker
IPno: 3606
Firm Name:   BKR Haines Watts
Address:   Park House  Park Square West
City Postcode:   Leeds  LS1 2PS


EQUITABLE LIFE:  Compromise Deal Unworkable, Advisers Warn
----------------------------------------------------------
Independent financial advisers have warned that a compromise deal
to put a ceiling on embattled insurer Equitable Life's
liabilities may be unworkable, The Times related Friday.

After the House of Lords ruled it must pay guaranteed annuity
rate (GAR) policyholders in full, Equitable charged the 1.5
billion pound shortfall to 450,000 with-profits policyholders.  
The company closed down late last year. GAR policyholders
representatives are negotiating with the Financial Services
Authority and Equitable in a compromise deal that would cap the
amount at the 1.5 billion pounds already paid.

Independent financial advisers (IFAs) say that because members
would have to give up something to which they were entitled,
current rules about "best financial advice" mean they would have
to urge policyholders not to vote in favor of a compromise.  

Misys IFA services marketing head Andrew Bedford said, "If people
don't sign they will get a guaranteed pension payment. If someone
is within five years of retiring, an IFA would say, `Don't sign
up'." Misys gives support and authorization to almost 20 percent
of the IFA market.


EURODIGITAL COMMUNICATIONS:  Liquidation Proceedings
----------------------------------------------------
Company Name:   Eurodigital Communications Ltd
Company No:   3678950
Com. Business:   Telecommunications
Appointed on:   19/12/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   David A Horner
IPno: 8956
Firm Name:   Harrisons
Address:   Tower House  Fishergate
City Postcode:   York  YO10 4UA


HUNTINGDON LIFE:  May Get 20 Million Pounds from American Firm
--------------------------------------------------------------
A report published by The Financial Times said Thursday that
drug-testing company Huntingdon Life Sciences may be receiving at
least 20 million pounds ($29.5 million) from a large unidentified
North American financial firm.  

Huntingdon has a deadline to repay a 22.6 million pound loan to
the Royal Bank of Scotland, The Times said.  


LOOK LIVELY:  Liquidation Proceedings
-------------------------------------
Company Name:   Look Lively TV Ltd
Company No:   2414653
Com. Business:   TV Production Co
Appointed on:   19/12/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Alan G Haden
IPno: 8823
Firm Name:   Haden Insolvency
Address:   Haden House  485 Birmingham Road
City Postcode:   Bromsgrove  B61 0HZ


MANNINGHAM ENVIRONMENT:  Liquidation Proceedings
------------------------------------------------
Company Name:   Manningham Environmental Ltd
Previous Name:   Manningham Engineering Ltd
Company No:   3137363
Com. Business:   Asbestos Isulators
Appointed on:   20/12/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Mark J Orton
IPno: 8846  Allan W Graham  8719
Firm Name:   KPMG
Address:   St Nicholas House  Park Row
City Postcode:   Nottingham  NG1 6FQ


MILLENIUM DOME:  Irish Company Is Possible Buyer
------------------------------------------------
Negotiations are ongoing between the British government and
Legacy Plc for the purchase of the Millenium Dome, a government
spokesman told RTE News Online Wednesday. Legacy is backed by
Treasury Holdings. The spokesman revealed the talks would be
finalized around the middle of February.

The Millennium Dome is located at Greenwich in Southeast London
and is to be sold for 125 million pounds. Legacy plans to turn
the Dome into a high-tech business campus.  

The RTE News report comes after information surfaced that talks
between the government and Irish property group Treasury Holdings
were floundering. Treasury reportedly accused British negotiators
of trying to change the terms of the 125 million pound
acquisition. Treasury Holdings is Ireland's most successful
property company.


MILLENIUM DOME:  Sale Proceeds to be Divided
--------------------------------------------
Dome minister Lord Falconer of Thoroton, in a parliamentary
written answer, said on the night of January 17 that the proceeds
of the sale of the Millennium Dome will be divided equally
between English Partnerships and the New Millennium Experience
Company after costs of some 22 million pounds have been deducted,
the Architects Journal said Thursday.

English Partnerships is managing the sale of the Dome on behalf
of the government in conjunction with the New Millennium
Experience Company (NMEC).

Falconer said the British government wanted to "balance the
reasonable interests of the taxpayer and the lottery player
respectively." He said, "The competition and other costs will be
deducted from the payments for the Dome site made on completion
and the ground rent later payable on the Dome site.

"Of the remainder, half will be paid to English Partnerships as
owners of the land and half to the New Millennium Experience
Company as owners of the Dome structure.

"Once NMEC has been wound up, it is intended that any remaining
share of the proceeds will pass to the Millennium Commission."

The same split will also apply to payment for land next to the
Dome that is also included in the sale, up to a threshold fixed
in monetary terms. Above that threshold, all payments would go to
English Partnerships.


SCI ENTERTAINMENT:  Sci Shares Plummet
--------------------------------------
Shares in computer games company Sci Entertainment fell after it
said it would incur a 3 million pound pre-tax loss in the year to
September 30, The Times said Friday. The loss came after an
increase in bad debts and provisions against Internet
investments. The company also warned of difficult trading.


TECHLINE RESOURCES:  Liquidation Proceedings
--------------------------------------------
Company Name:   Techline Resources Ltd
Previous Name:   Techline Aviation Ltd
Company No:   2295655
Com. Business:   Aircraft Services/Cargo
Appointed on:   19/12/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   N H O'Reilly
IPno: 8309  S B Ryman  4731
Firm Name:   Rothman Pantall & Co
Address:   Clareville House  26-27 Oxendon Street
City Postcode:   London  SW1Y 4EP



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

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