/raid1/www/Hosts/bankrupt/TCREUR_Public/010306.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

             Tuesday, March 06, 2001, Vol. 2, No. 45


                            Headlines


B E L G I U M

LERNOUT & HAUSPIE: New Chief Forces Out Co-Founder


F R A N C E

BULL SA: Posts 243 Million Euros Loss


G E R M A N Y

KREDITANSTALT FUER: Plans Bond Issues to Refinance Debt
TOKAI BANK: To Liquidate Unit


I R E L A N D

VIRGIN EXPRESS: Aeroflot to Take Over VEI


I T A L Y

E.BISCOM SPA: Reports Net Loss of 102.6 Million Euros
ZIVAGO.COM:  Closes 2000 with L3.5 Billion Turnover


N E T H E R L A N D S

AND INTERNATIONAL: Creditor Demands Fl 50 Million from Publisher


S W E D E N

LEGO COMPANY: Toymaker Posts One Billion Crowns Loss


U N I T E D   K I N G D O M

BRITISH TELECOM: Moody's Lowers Ratings to Negative
CRAIG Y PANT:  Liquidation Proceedings
DAWSON INTERNATIONAL: Restructuring Pays Off
EIDOS PLC: Delays Release of Playstation 2 Titles
EQUITABLE LIFE: Halifax Completes Equitable Takeover

NETSLUG LTD:  Liquidation Proceedings
PROVALIS PLC: Posts 2.3 Million Pounds Pre-tax Loss
PSION PLC: To Axe One-Fifth of Staff
SAVE GROUP: Petrol Retailer Files for Receivership
ZLAND.COM (UK):  Liquidation Proceedings


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

LERNOUT & HAUSPIE: New Chief Forces Out Co-Founder
--------------------------------------------------
Lernout & Hauspie Speech Products NV's new chief executive
Philippe Bodson has forced out L&H co-founder Jo Lernout,
according to The Wall Street Journal yesterday.

Bodson said that Lernout, who denied any involvement in the
alleged accounting fraud committed while he was co-chairman,
resigned from his position as chief technology officer at the end
of February at Bodson's request in January.

A probe by outside lawyers and accountants last fall found that
L&H artificially boosted its revenues by up to $277 million, or
one-third, from the beginning of 1998 to the middle of last year.


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

BULL SA: Posts 243 Million Euros Loss
-------------------------------------
Financially troubled computer hardware and software group Bull SA
confirmed on Thursday a worse-than-expected net loss of 243
million euros ($226 million) for 2000, blaming its poor
performance on a difficult climate for information technology
companies last year, Reuters said.

Last November, Bull announced plans for a restructuring plan that
involved the sale of non-core assets worth 400 million euros. It
started off last month with a sale of assets, including the CP8
smart card unit to U.S. firm Schlumberger for 350 million euros.
Bull also said earlier on Thursday that it was selling its Irish
management consultancy subsidiary Cara to Hibernia Capital
Partners for 31 million euros.

Bull said that asset sales would help boost equity capital to 237
million euros from 86 million, where its net debt rose to 301
million from 148 million.


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

KREDITANSTALT FUER: Plans Bond Issues to Refinance Debt
-------------------------------------------------------
State-owned development bank Kreditanstalt fuer Wiederaufbau
plans to refinance outstanding debt by issuing two long-term, 5
billion euro bond issues this year, according to The Wall Street
Journal on Friday.

The bank said it would hold off on the sale of the first tranche
of bonds until after the U.S. Federal Reserve Board meets on
March 20 to decide on interest rates. The first issue will mature
July 4, 2011.

The German government announced in June of 2000 that it was
merging KfW with two smaller state-owned banks, Deutsche
Ausgleichsbank and Deutsche Investitions-und
Entwicklungsgesellschaft, to give the banks more leverage in
raising money.

KfW expects its debt restructuring to save up to 110 million
euros over the next two to three years and hopes to pay interest
close to benchmark Austrian government bonds. The bank also wants
to sell 70 percent of the issue to European central banks and
fund managers with the remainder going to the U.S. and Asia.


TOKAI BANK: To Liquidate Unit
-----------------------------
Tokai Bank Ltd will liquidate its unit Tokai Bank (Deutschland)
GmbH, based in Dusseldorf, according to AFX News in its March 2
report. The company said it would also close the unit on March
30.


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

VIRGIN EXPRESS: Aeroflot to Takeover VEI
----------------------------------------
Virgin Express Ireland, which was put on sale in December after
two-and-a-half years of loss-making operations, expects Russian
airline Aeroflot to buy Sir Richard Branson's low-cost airline,
BBC News Online said in its March 1 report.

Aeroflot is expected to buy Virgin Travel's 59 percent stake in
VEI at a maximum of 10 million pounds. The remaining 41 percent
is held by public shareholders.

Most of the carrier's 220 employees will retain their jobs under
Aeroflot.


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

E.BISCOM SPA: Reports Net Loss of 102.6 Million Euros
-----------------------------------------------------
Broadband Internet provider e.Biscom Spa made a consolidated net
attributable loss of 102.6 million euros in 2000, slightly below
forecast of 106.67 million euros, Reuters said in its March 1
edition.

The loss before interest, tax, depreciation and amortization
(LBITDA) amounted to 39.7 million euros.

e.Biscom has paid no dividends during the last 12 months and has
reported losses during the previous 12 months.


ZIVAGO.COM:  Closes 2000 with L3.5 Billion Turnover
---------------------------------------------------
The shareholders' meeting of online bookshop Zivago.com has been
called for March 27 to decide on the company's liquidation,
following a L3.5 billion turnover in 2000, Il Mondo & World
Reporter said in its March 2 edition.

Zivago.com's 2000 balance sheet also shows a loss. The amount was
not disclosed.


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

AND INTERNATIONAL: Creditor Demands Fl 50 Million from Publisher
----------------------------------------------------------------
Electronic publisher AND International Publishers has been
confronted with a new creditor, claiming a subordinated
convertible bond loan of Fl 50 million, according to Het
Financieele Dagblad's March 2 report.

The new claim puts further pressure on AND's debt burden but will
have no further consequences for the company's immediate cash
position.

As AND sold its Biblion division shortly before the start of the
suspension, it could pay some of its bank debts and continue its
activities for some time.


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

LEGO COMPANY: Toymaker Posts One Billion Crowns Loss
----------------------------------------------------
Toymaker Lego Company announced on Thursday a record loss for
2000 of around one billion crowns ($124 million), according to
Reuters' March 1 report.

"2000 was a very difficult year for the entire toy industry, Lego
was affected because we lost focus," Lego executive vice-
president and chief operating officer Poul Plougmann said.

Lego swung back into a 274 million crown net profit in 1999, from
a 194 million crown net deficit in the previous year, the first-
ever loss for the group since it was founded in 1932.

Analysts expects massive redundancies, especially in Lego's
overseas operations, as management makes moves to re-base
production at its headquarters in Billund, west Denmark.

Plougmann also pledged Lego would now refocus on producing
materials for open-ended play for children, an area with huge
potential and lower risk.

Lego is best known for its colorful, interlocking plastic bricks,
Star Wars toys for children and Legoland theme parks, keeping
little hands and imaginations busy in some 130 countries,
including Denmark, England and the United States.


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

BRITISH TELECOM: Moody's Lowers Ratings to Negative
---------------------------------------------------
Moody's Investors Service has changed the rating outlooks of
British Telecommunications plc, its guaranteed subsidiaries and
Esat Telecom Group plc from stable to negative.

The rating change reflects Moody's perception of an increased
uncertainty regarding the ability of BT's management to execute
an asset disposal plan within the next 12 months.

The current ratings take account of management's determination to
execute a plan to raise cash in order to reduce debt by a minimum
of GBP10 billion. It also includes the disposal of non-core
assets, as well as the flotation of operating subsidiaries to
improve BT's substantially deteriorated debt protection ratios
within the next fiscal year.

Any deviation from the expected overall improvement through March
2002 will trigger a possible downgrade of both the long- and
short-term debt ratings that are currently at A2 and Prime-1.

London-based British Telecommunications, the world's fifth-
largest telephone network operator, serving over 27 million
exchange lines, expects its net debt to be close to GBP30 billion
by the end of this fiscal year, which is March.


CRAIG Y PANT:  Liquidation Proceedings
--------------------------------------
Company Name:   Craig Y Pant Colliery Co Ltd
Company No:   1685426
Com. Business:   Mining/Agglomeration of Hard Coal
Appointed on:   13/02/01
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Wilfred V Jones  IPno: 6769    
Firm Name:   BN Jackson Norton
Address:   Dominions House North  Dominions Arcade  Queen St
City Postcode:   Cardiff  CF10 2AR


DAWSON INTERNATIONAL: Restructuring Pays Off
--------------------------------------------
Clothing and footwear company Dawson International said that its
turnaround strategy was working as it reported increased profits
and higher earnings per share for its financial year-end,
according to The Scotsman on Friday.

After stripping out the loss on its discontinued businesses of 3
million pounds for 2000, the group, which restructured in 1999 to
focus on luxury cashmere, said pre-exceptional profits were 5.2
million pounds in the year ending December 2000, compared with a
loss of 9.1 million pounds in 1999.

Dawson added that the overall turnover decrease of 101 million
pounds in 2000 from 140.9 million pounds in 1999 was due to the
removal of unprofitable businesses. These included its Pringle of
Scotland business and Laidlaw & Fairgrieve. It also shed
thousands of jobs in Scotland.

Dawson's sole business now is to sell cashmere essentially from
goat to garment.


EIDOS PLC: Delays Release of Playstation 2 Titles
-------------------------------------------------
Games software group Eidos Plc is still struggling to cope with a
market bogged down by short supplies of Sony's new PlayStation 2
machine, This Is London said last week.

According to chief executive officer Mike McGarvey, the company
would delay releasing its backlogged PlayStation 2 titles until
the autumn, when the new Sony machine should be more widely
available.

McGarvey, who said possible bid soundings from rivals would be
unwelcome while the group restructures, hailed a 10 percent
reduction in costs as cuts to the marketing budget helped offset
a temporary reduction in margins to 56.4 percent from 62.2
percent.

Eidos has been plagued by profit warnings, write-offs and a
management exodus over the past 12 months. The group said losses
in the nine months to December 31 rose to 68.01 million pounds.


EQUITABLE LIFE: Halifax Completes Equitable Takeover
----------------------------------------------------
The troubled mutual insurer is now under a new chief executive as
Halifax completed its takeover of Equitable Life, according to
Press Association on Thursday.

Halifax paid 500 million pounds into the insurer's fund
management business, took control of the administration and
staff, assets and systems of Equitable's client servicing and
investment management operations.


NETSLUG LTD:  Liquidation Proceedings
-------------------------------------
Company Name:   Netslug Ltd
Company No:   4020689
Com. Business:   E-Commerce Website
Appointed on:   14/02/01
Type:   Creditors
Appointed by:   Creditors
Liquidators:   H J Sorsky  IPno: 5398    
Firm Name:   Sorskys
Address:   Gable House  239 Regents Park Road
City Postcode:   London  N3 3LF


PROVALIS PLC: Posts 2.3 Million Pounds Pre-tax Loss
---------------------------------------------------
Provalis Plc, a developer of innovative orally available
therapeutic products and rapid point-of-care diagnostics, has
reported an interim pre-tax loss of 2.3 million pounds (4.8
million pounds loss), with no dividend, The Times said in its
March 2 report.

The company's total liabilities as of June 2000 were 14.40
million pounds.


PSION PLC: To Axe One-Fifth of Staff
------------------------------------
Hand-held computers pioneer Psion Plc announced its plans to
downsize 100, or one-fifth, of the company's UK workforce,
according to The Scotsman on Friday.

Much of the Psion's problems stemmed from a decision by mobile
phones giant Motorola to pull out of a joint-venture, Odin, to
produce a telephone which could provide easy access to the
Internet.

The streamlining exercise is expected to save the group 17
million pounds in a full year. Aside from the job cuts, Psion,
which incurred a pre-tax loss of 1.4 million pounds compared with
previous profits of 4.7 million pounds, also confirmed it would
scrap plans to build its own smart mobile telephone.

Most of the redundancies will take place in London and in Milton
Keynes.


SAVE GROUP: Petrol Retailer Files for Receivership
--------------------------------------------------
Save Group Plc, Britain's largest independent petrol filling
station operator, has passed into administrative receivership for
debts of close to 100 million pounds, with up to 2,000 jobs in
jeopardy, according to Press Association's March 1 report.

Save filed for administrative receivership at the High Court on
Wednesday night after failing to agree funding terms with its
banks. It has a network of 400 petrol stations around the
country.


ZLAND.COM (UK):  Liquidation Proceedings
----------------------------------------
Company Name:   Zland.Com (UK) Ltd
Company No:   3955087
Com. Business:   Internet Co
Appointed on:   14/02/01
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Paul R Boyle  IPno: 8897  John C Sallabank  8809
Firm Name:   Harrisons
Address:   4 St Giles Court  Southampton Street
City Postcode:   Reading  RG1 2QL



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,
Salve M. Mordeno and Cristina Pernites, Editors.

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

This material is copyrighted and any commercial use, resale or
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The TCR Europe subscription rate is $575 per half-year, delivered
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