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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, April 09, 2001, Vol. 2, No. 69


                                         Headlines


* B E L G I U M *

LERNOUT & HAUSPIE: KPMG to Deliver Court-Requested Report
REAL SOFTWARE: ABB Abandons Bid for US Unit
REAL SOFTWARE: CEO Says Solution for US Unit Possible

* F R A N C E *

LIBERTY SURF: Posts 230 Million Euro Loss

* G E R M A N Y *

MET@BOX AG: Chief Ebeling Resigns
TELDAFAX: Deutsche Telekom to Cut Phone Lines
TELDAFAX AG: MobilCom Rejects Offer to Buy Clients

* I R E L A N D *

IVERNIA WEST: Posts $5.7 Million Loss in 2000

* I T A L Y *

FREEDOMLAND-ITN: Investor Group to Buy Freedomland Stake

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

EVC INTERNATIONAL: Posts Net Loss of 84.6 Million Euro
VNU N.V.: Considers Financing Alternatives
VNU N.V.: Ratings Under Review for Possible Downgrade

* P O L A N D *

ELEKTRIM SA: Cancels Debt Repayment

* U N I T E D   K I N G D O M *

ARCADIA GROUP: Posts 57.4 Million Pounds Loss
MARKS & SPENCER: Chief to Receive Bonus Despite Firm's Slump
MARKS & SPENCER: French Court to Rule on Union Request Today
MARKS & SPENCER: Restructuring Sets Off Solid Buying
MOSS BROS: Chair to Step Down Amid Losses
PREMIER HOTELS: In Receivership As Refinancing Fails


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


LERNOUT & HAUSPIE: KPMG to Deliver Court-Requested Report
---------------------------------------------------------

KPMG Consulting Inc., the auditor for Lernout & Hauspie Speech
Products NV, will deliver L&H's company report by the end of this
week, Dow Jones reported.

The Ieper court asked the auditor to report on restated figures
for 1998, 1999 and the first half of 2000, following Lernout's
admission that there were errors and irregularities.

Sources close to the company said management has also decided to
reduce the number of languages for which speech products are
being developed. Lernout is seen retaining Russian, Polish and
Farsi among others.


REAL SOFTWARE: ABB Abandons Bid for US Unit
-------------------------------------------

Swedish-Swiss engineering group ABB Ltd. has decided not to
acquire the U.S. subsidiary of Belgium's Real Software,
industrial software producer Real Enterprise Solutions, according
to Dow Jones' April 5 report.

"After a careful investigation of the activities of Real
Enterprise Solutions, ABB has decided to not acquire the
company," ABB spokesman Thomas Schmid said.


REAL SOFTWARE: CEO Says Solution for US Unit Possible
-----------------------------------------------------

Real Software said that there is still a possibility that a
solution can be found for its troubled U.S. unit Real Enterprise
Solutions, following the collapse of talks with Swiss-Swedish
company ABB Ltd., Dow Jones Newswires in its April 5 edition
reported.

According to chief executive Theo Dilissen the company is under
pressure to find a swift solution since the Belgian company isn't
injecting any more cash into its U.S. operations. If the next
round of negotiations fails, Real Enterprise Solutions may file
for bankruptcy.

Real Software has formulated mid- and long-term plans for the
reduction of its debt. It has agreements with suppliers to spread
the repayment of outstanding debt.


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


LIBERTY SURF: Posts 230 Million Euro Loss
-----------------------------------------

Net loss of Internet service provider LibertySurf SA in 2000 has
widened to 230 million euro, from 26 million euro for the last
eight months of 1999, according to Dow Jones' April 5 report.

Losses before interest, taxes, depreciation and amortization were
143 million euro, compared to 20 million euro in 1999.

In January, Italian Internet service provider Tiscali SpA agreed
to buy LibertySurf.


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


MET@BOX AG: Chief Ebeling Resigns
---------------------------------

Met@box AG, manufacturer of JoeCard processor cards for computers
and the Broadcast Online Television systems, said its chief
operational officer Geerd-Ulrich Ebeling has resigned for
personal reasons, according to Dow Jones' April 4 report.

The company said it doesn't plan to name a successor for Ebeling
but does intend to appoint a chief financial officer.

Earlier in March, Schutzgemeinschaft der Kleinaktion"re, the
association that represents the interests of small investors in
Germany, accused Met@box of insider trading and issuing false
statements.


TELDAFAX: Deutsche Telekom to Cut Phone Lines
---------------------------------------------

Deutsche Telekom AG has on Thursday cut lines to TelDaFax AG,
which is in insolvency proceedings, for failure to find a way to
pay Telekom the DM90 million it owes, Dow Jones reported.

Telekom said it would offer TelDaFax customers a way to continue
their phone service, particularly calls for emergency services.

Meanwhile, stock-market authority Deutsche B"rse AG Wednesday has
TelDaFax as one of the companies that wasn't granted an extension
for filing its 2000 earnings.


TELDAFAX AG: MobilCom Rejects Offer to Buy Clients
--------------------------------------------------

Telecom firm MobilCom AG rejected an offer to buy 170,000 clients
from ailing TelDaFax for 400 million marks, saying the price was
too high, Reuters in its April 5 edition said.

Teldafax filed for insolvency earlier last week as a result of
its inability to pay DM90 million to Deutsche Telekom.

World Access saved TelDaFax when it raised its stake to 70.11%
and planned to cover its debts. The U.S. telecom provider said
that it would sell properties in Australia and New Zealand to
raise another $50 million to help it fund the German company.


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


IVERNIA WEST: Posts $5.7 Million Loss in 2000
---------------------------------------------
PRESS RELEASE, April 4

Metals mining and exploration group Ivernia West Inc. reported a
loss before writedowns of $1.8 million for the quarter and $5.7
million for the twelve month period ended December 31, 2000,
compared with a loss of $0.7 million for the third quarter and
$3.9 million for the first nine months of 2000.

The Company continued to capitalize costs associated with the
commissioning of the Lisheen Mine during the fourth quarter and
as a result, financial results for the quarter and the 12-month
period are associated primarily with overhead and corporate
development activities.

The principal reason for the increase in the loss before
writedowns during the fourth quarter compared to the previous
quarter is primarily due to foreign exchange losses and costs
associated with the non-recurring reorganization of the company
and its Toronto Stock Exchange listing. The loss before
writedowns for the quarter compares with a loss of $0.6 million
for the fourth quarter of 1999.

As a result of the additional capitalized costs incurred in the
delayed commissioning of the Lisheen Mine during 2000 and to
reflect changes to the life-of-mine plan, a writedown in the
carrying value of the Lisheen Mine totaling $25.0 million,
accounted for under Canadian GAAP, was taken during the period.
After taking into account this adjustment, Ivernia West reported
a net loss of $26.8 million or $0.23 per common share for the
quarter and $30.7 million or $0.28 per common share for the year
ended December 31, 2000. The net loss for the quarter compares
with a net loss of $0.6 million or $0.01 per common share for the
fourth quarter of 1999 and a net loss of $1.3 million or $0.01per
common share for the year ended December 31, 1999.

At December 31, 2000 Ivernia West Inc. had 117,466,126 common
shares issued and outstanding, as well as outstanding options
exercisable for a further 2,435,000 common shares.

Cash utilised in investing activities was $7.7 million during the
fourth quarter and $27.4 million for the 12-month period ending
December 31, 2000. This compares to $6.6 million in the third
quarter 2000. Cash utilized in investing activities was $13.7
million in the fourth quarter of 1999 and $38.7 million during
the 12-month period ending December 31, 1999.

The decrease in cash utilized in investing activities for the
twelve month period ending December 31, 2000 is primarily the
result of decreased expenditures related to the development of
the Lisheen Mine. Cash generated from financing activities
relates to $4.5 million of funding to cover Lisheen Mine cost
overruns from Anglo American plc on behalf of Ivernia during the
fourth quarter. This compares to $10.8 million of drawings on the
Project Loan during the corresponding period in 1999.

Ivernia's consolidated cash and cash equivalents were $10.1
million at December 31, 2000. At the same date, Ivernia had total
debt of $100.7 million, the main components of which were the
Lisheen Mine Project Loan ($86.5 million), the Standby Facility
($6.0 million), the Lisheen Working Capital Facility ($3.7
million) and the Anglo Funding Agreement ($4.5 million).

In November 2000, the Company finalized arrangements with Anglo
to provide for the funding of certain cost overrun contributions
for the Lisheen Mine as permitted under the terms of the Lisheen
Joint Venture Agreements.

Pursuant to the Funding Agreement, Anglo has agreed to fund
Ivernia's 50% share of such overrun cost contributions payable
after November 1, 2000. As at December 31, 2000 $4.5 million has
been funded by Anglo under the Funding Agreement. Ivernia
currently expects that its 50% share of cost overruns in relation
to the Lisheen Mine beyond 2000, which are not funded by project
cash flow will be funded by Anglo under the terms of the Funding
Agreement. The Lisheen Mine began commercial production for
reporting purposes on January 1, 2001.


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


FREEDOMLAND-ITN: Investor Group to Buy Freedomland Stake
--------------------------------------------------------

An Italian investor group, which includes advertising firm Cairo
Communications, agreed to buy 27.4% of Internet-via-TV provider
Freedomland, Reuters reported on Thursday.

The acquisition will end Freedomland's month-long search for
partners to help end a crisis sparked by a false accounting
investigation. Freedomland founder Virgilio Degiovanni was forced
to step down as chairman following the police investigation into
the way the company was floated last year.

The investor group said it had the option either to buy the stake
in a range between 14 and 29 euros per share linked to market
performance, or at a fixed price of 18 euros.


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


EVC INTERNATIONAL: Posts Net Loss of 84.6 Million Euro
------------------------------------------------------

EVC International NV, Europe's biggest PVC producer, reported an
84.6 million euro loss in 2000, Reuters in its April 5 edition
said.

EVC also posted a negative working capital at the end of 1999.
Its current liabilities were 321.30 million euro, while total
current assets were only 317.90 million euro.

Earlier this year, Belgium's Ineos Capital Ltd invested 75
million euros in EVC by raising its stake to 64.5%. Italy's
Enichem also holds a 16.8% interest in EVC.


VNU N.V.: Considers Financing Alternatives
------------------------------------------
PRESS RELEASE, April 5

On February 26, 2001, VNU announced its decision to exercise the
early redemption option on its 750 million Dutch guilder 2.75%
subordinated convertible debenture loan dated 1998-2005. On April
4, 2001, 78,131,000 Dutch guilder debentures had elected to
convert. As a consequence, 671,869,000 Dutch guilder of the
debenture loan will be redeemed early on April 17, 2001,
reflecting an amount of 305 million euro.

VNU intends to issue a new convertible debenture loan in the
short term, to replace the debenture loan to be redeemed early.
Given the current market conditions, VNU no longer intends to
issue the approximately 500 million euro equity offering,
previously mentioned in December 2000. As a consequence, VNU is
considering increasing the convertible debenture loan mentioned
above with an amount approximately equal to the previously
mentioned stock issuance.

VNU is one of the world's leading media and information
companies. Its core activities are marketing & media information,
business information and directories. VNU is active in more than
100 countries, spread across all continents. The company employs
over 35,000 people and has annual revenues of approximately EUR 4
billion.


VNU N.V.: Ratings Under Review for Possible Downgrade
-----------------------------------------------------

Moody's Investors Service on April 5 has put the debt rating of
media and information company VNU nv under review for possible
downgrade. The rating action follows the announcement that VNU is
now unlikely to go ahead with a planned 500 million euro equity
offering and intends to raise 800 million euro in new convertible
debt instead.

At the same time VNU announced that only 10% of holders of its
750 million Dutch guilder 2 3/4% convertible subordinated bonds,
which were called by the company in February, opted to take up
shares.

The company will pay back the remaining 90% of the bonds from
available bank facilities, which it aims to refinance with the
contemplated new convertible debt issue. Moody's confirmation of
VNU's debt ratings following the announcement of the company's
acquisition of ACNielsen Corporation had been based on the
expectation that VNU would not take on new debt (other than
bridge financing) to fund the acquisition and rely on the sale of
its educational and consumer publishing businesses and the
contemplated equity issue to raise financing. Against the
background of Thursday's announcements and the currently
difficult environment for media asset sales it now seems that VNU
might find it difficult to meet this condition for ratings
maintenance.

Moody's review will focus on the impact of the company's changed
funding plans on its overall financial flexibility and on its
debt protection measurements, particularly on its ability to
remain well within its 4-6 times interest cover corridor once the
re-financing process for the ACNielsen acquisition is completed.
Moody's added that it expects VNU to report on the progress of
its disposal plans over the next couple of months.

VNU nv's A3 ratings of the 5.5% Eurobonds due 2008 and of the
6.625% Eurobonds due 2007, and the Baa1 rating of the 1.75%
Convertible Subordinated Eurobonds due 2004 were put under review
for possible downgrade.


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


ELEKTRIM SA: Cancels Debt Repayment
-----------------------------------

Elektrim group cancelled the decision to repay debts of 637
million zloty to commercial banks Pekao SA and Powszechny Bank
Kredytowy, Polish News Bulletin in its April 4 edition said.

The deadline for repayment of 98 million zloty worth of
commercial bonds in Pekao SA has been moved from March 30 to July
5, and 90 million zloty credit at PBK from March 30 to 4 October.
Bank Slaski also agreed to prolong the repayment term.

Analysts expect Elektrim to start actions aimed at maintaining
solvency, until it gets the money from the sale of Port Praski
and a stake in Elektrim Kable.


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


ARCADIA GROUP: Posts 57.4 Million Pounds Loss
---------------------------------------------

Fashion retailer Arcadia Group has reported an interim pre-tax
loss of 57.4 million pounds, against losses of 60.8 million
pounds last year, according to The Times' Friday report.

Earlier last week, arcadia has stepped up its restructuring
program by putting clothing brands Warehouse, Principles, the
Hawkshead and Racing Green catalogue businesses, and its
Liverpool-based designer retailer Wade Smith up for sale to
simplify the business.


MARKS & SPENCER: Chief to Receive Bonus Despite Firm's Slump
------------------------------------------------------------

Marks & Spencer chairman Luc Vandevelde is in line for a 650,000-
pound bonus despite the company's announcement of 4000 lay-offs,
dismal trading figures and the closure of its European
operations, the Evening News reported on April 4.

The bonus was agreed in March when Vandevelde joined the company,
provided that he delivered on certain strategic and qualitative
targets. An M&S spokesman declined to explain the targets
Vandevelde had to meet.

However, fund managers believe that if the bonus is paid, it will
prompt shareholder outrage because Vandevelde has so far failed
to show any signs of turning the company around and has failed to
deliver on his promise to achieve recovery within two years.

The company said the Vandevelde payment still had to be ratified
on May by the company's remuneration committee, which is chaired
by Dame Stella Rimington, and includes former Guinness deputy
chairman Brian Baldock, former Prudential head Sir Martin Jacomb,
former Unilever chief Sir Michael Perry and Rolls-Royce chairman
Sir Ralph Robins.


MARKS & SPENCER: French Court to Rule on Union Request Today
------------------------------------------------------------

A French court will announce today its ruling concerning a labor
union request to suspended the closure of 18 Marks & Spencer
branches in France, according to AFX's April 5 edition.

Earlier, French labor minister Elisabeth Guigou said there is a
strong presumption that the company has not fulfilled labor law
requirements.


MARKS & SPENCER: Restructuring Sets Off Solid Buying
----------------------------------------------------

Share price in Marks & Spencer rose 12.5% last week as individual
investors believed the massive restructuring announcement would
turn the retailing giant around, the Financial Times in its April
5 edition said.

Figures from discount broker Charles Schwab Europe show Marks &
Spencer was both the most bought and the most sold stock in the
week to Wednesday April 4, but that buying outweighed selling by
a ratio of 1.7 to 1.

The buying contrasts with the pattern seen over the last 12
months where individual investors tended to buy telecom,
technology and blue-chip stocks whenever they fell sharply.


MOSS BROS: Chair to Step Down Amid Losses
-----------------------------------------

Chairman Neil Benson of troubled menswear retailer Moss Bros will
be stepping down following the company's announcement of an
expected pre-tax loss of 17.5 million pounds for the year ended
January 27, the Financial Times in its April 2 report said.

Moss Bros went through a sweeping overhaul of its brand and last
year said it would pass its dividend and close 42 shops in an
effort to return to profitability.

Keith Hamill, former finance director of WH Smith Benson, will
replace Benson.


PREMIER HOTELS: In Receivership As Refinancing Fails
----------------------------------------------------

Premier Hotels has been placed in the hands of administrative
receivers from Deloitte & Touche after an attempted refinancing
fell through at the eleventh hour, according to The Times on
Friday.

Simon Hermes, Premier's biggest shareholder, decided the amount
of fresh funding required was too high.

Deloitte said that Premier, which employs 335 staff and operates
24 hotels around the UK, appeared to have experienced financial
difficulties through its property development activities. The
receivers, whose partners include Merrill Lynch, HSBC and
Quintain Estates, were unable to say how many of the hotels were
not in receivership.

Norwich Union, Jarvis Hotels and Bass are tipped as possible
bidders.


                  **********************


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. Kimberly MacAdam,
Salve M. Mordeno and Cristina Pernites, Editors.

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

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