/raid1/www/Hosts/bankrupt/TCREUR_Public/010420.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, April 20, 2001, Vol. 2, No. 78


                            Headlines

* B E L G I U M *

LERNOUT & HAUSPIE: Court Rules Creditors' Claims
REAL SOFTWARE: Banks to Restructure Debt
REAL SOFTWARE: Resumes Trading
SABENA SA: Denies Involvement in Congo Conflict

* C Z E C H   R E P U B L I C *

CESKE RADIOKOMUNIKACE: Norwegian Firm May Bid for Ceske

* F R A N C E *

FIMATEX SA: Posts 33.3 Million Loss in 2000

* G E R M A N Y *

BANKGESELLSCHAFT BERLIN: Seeks Investors to Solve Crisis
BANKGESELLSCHAFT BERLIN: To Lose 500 Million Euro in 2001
CALLINO GMBH: DT Disconnects Service
DAIMLERCHRYSLER: Denies Donlon Will Return to Germany
EM.TV: Unveils Board Revamp
LANDESBANK BERLIN: Ratings Under Review for Possible Downgrade
LANDESBANK BERLIN: Ratings Under Review for Possible Downgrade

* H U N G A R Y *

DIOSGYOR STEELWORKS: Italian Buyer to Revive DAM
MECSEK TOURS: Baranya to Sell Tourist Company
STATE RAILWAYS: Posts Ft22.2 Billion Loss
SYNERGON RT: Reports Losses of Ft1 Billion

* I R E L A N D *

EIRCOM PLC: EGM Precedes Annual Results
EIRCOM PLC: Meridian Secures Court Ruling

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

KPN NV: Says It Is Open to Takeover Offers

* S W I T Z E R L A N D *

SAIRGROUP: French Airlines Strike Grounds Flights
SAIRGROUP: Plunges Amidst Legal Worries
ZURICH FINANCIAL: Scots Safe From UK Redundancy

* U N I T E D   K I N G D O M *

BALTIMORE TECHNOLOGIES: Shares Fall in London And US
CAMMELL LAIRD: Receivers to Axe More Jobs in UK
RAILTRACK GROUP: Faces Legal Action on Contracts


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


LERNOUT & HAUSPIE: Court Rules Creditors' Claims
------------------------------------------------

The Commercial Court in Ieper, Belgium has ruled on the claims
brought by creditors of Lernout & Hauspie Speech Products NV, Dow
Jones' April 18 edition reported. It also said that the total
debt of the speech and language company amounts to BEF22.7
billion.

KBC Bank was awarded 157.8 million euro, Fortis 132.4 million
euro, Artesia Bank 44 million euro, Deutsche Bank 42 million euro
and Dresdner Bank Luxemburg 21 million euro. The banks were
awarded the sums claimed because the totals are undisputed
repayment obligations.

Other claimants were given provisional awards of 1 euro, which
translates into minor voting rights on June 5 on whether or not
L&H will be granted a bankruptcy protection.

Among the recipients of the provisional award are Stonington
Partners, which controlled L&H Dictaphone, former chief
executives John Duerden and Gaston Bastiaens and auditors KPMG.
Janet and James Baker, who sold Dragon to L&H, claimed 220
million euro but were also awarded 1 euro provisionally.


REAL SOFTWARE: Banks to Restructure Debt
----------------------------------------

Real Software said its creditor banks have expressed their
intention to restructure all of the company's debts and said it
has formed a task force to strategically restructure the troubled
firm, according to Reuters' April 17 report.

Real Software said the restructuring should allow it to restore
its capital base.

Most of Real Software's 225 million euros in debt outstanding was
taken on to finance its $190 million acquisition of American firm
Tava Technologies in 1999. It ran into financial difficulties
after Tava's business failed to meet expectations.

Furthermore, the shareholders equity of Real Software now stands
at negative 77.4 million euros. The company restated its 2000
results to a net loss of 289.3 million euros, compared to the
previously reported net loss of 271.5 million euros.


REAL SOFTWARE: Resumes Trading
------------------------------

Trade in the shares of software company Real Software Group NV
resumed on Wednesday after its shares were suspended pending a
Tuesday announcement, Dow Jones April 18 edition said.

The company said after the market closed Tuesday that a banking
syndicate has agreed to reschedule the group's outstanding debts.

The group also said it had a net loss of 289.3 million euro in
2000, compared with a profit of 6.3 million euro in 1999.


SABENA SA: Denies Involvement in Congo Conflict
-----------------------------------------------

Sabena SA denied that its cargo unit was involved in the
transport of minerals and other resources and has profited from
the ongoing conflict in Congo, Dow Jones reported on Tuesday.

The move came after a U.N. report claimed that thirteen Belgian
companies were capitalizing on the civil strife in Belgium's
former colony.

Sabena has further denied any involvement in alleged plundering
by various rebel factions, believed to be profiteering from
coltan, a mineral used in the production of power-storing
components for high-tech gear ranging from nuclear reactors to
cell phones to PlayStations.


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


CESKE RADIOKOMUNIKACE: Norwegian Firm May Bid for Ceske
-------------------------------------------------------

Norway's Telenor has shown interest in the Czech government's 51%
stake in telecom company Ceske Radiokomunikace, Reuters reported
on Monday.

Czech officials have urged the consortium to raise its bid of
about 13.5 billion Czech crowns ($345.8 million), including
rights to a large expected dividend. The offer was well below
market estimates of the firm's value.

When contacted by Reuters, Deputy Transport and
Telecommunications Minister Marcela Guerlichova declined to
confirm Telenor's interest but said more potential investors have
appeared after the tender generated little interest.


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


FIMATEX SA: Posts 33.3 Million Loss in 2000
-------------------------------------------

Online broking company Fimatex SA, a unit of French bank group
Societe Generale, reported a net loss of 33.3 million euro in
2000, against a 7.5 million euro loss a year earlier, Dow Jones
reported on Wednesday.

According to Chairman and Chief Executive Vincent Taupin, he
expects to report a net loss of between 25 million euro and 30
million euro for 2001.

Taupin added that while he saw Fimatex breaking even in its core
French and German operations this year, the cost of establishing
activities in Spain and the U.K. will keep the company in the
red.


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


BANKGESELLSCHAFT BERLIN: Seeks Investors to Solve Crisis
--------------------------------------------------------

Bankgesellschaft Berlin is seeking minority investors to support
its capital base, Reuters reported on Tuesday, citing chief
executive Wolfgang Rupf.

According to Rupf, the investors could be domestic and foreign
financial groups such as Deutsche Bank's retail banking arm
Deutsche Bank 24, HypoVereinsbank, Allianz, ING or Citigroup. It
could also include another German state-owned Landesbank.

Bankgesellschaft is involved in a crisis that threatens to erode
the bank's capital base. Heavy losses have revealed problems
associated with political appointments and management. Germany's
banking regulator BAKred is conducting an investigation over the
competency of Bankgesellschaft's management and so far five
senior executives have resigned or were dismissed.


BANKGESELLSCHAFT BERLIN: To Lose 500 Million Euro in 2001
---------------------------------------------------------

Bankgesellschaft Berlin expects to lose more than 500 million
euro this year due to higher-than-expected loan provisions, the
Financial Times reported in its April 18 edition.

The bank, 57% owned by the state of Berlin, sees the loss at
around 800 million euro before the use of reserves, compared with
a net profit of 157 million euro a year earlier.

Results will likely require the bank to look for an outside
partner for fresh capital estimated at around 1 billion euro.

Chairman Wolfgang Rupf said that Deutsche Bank 24,
HypoVereinsbank and Allianz, along with ING or Citibank from
abroad are potentially interested parties in a stake in
Bankgesellschaft's retail banking subsidiary.


CALLINO GMBH: DT Disconnects Service
------------------------------------

Deutsche Telekom AG on Wednesday disconnected the line of
telecommunications service provider Callino GmbH, a unit of
Formus Communications that have recently filed for insolvency,
Dow Jones reported in its April 17 edition.

In a press release, DT said that despite intensive negotiations,
Callino wasn't able to present a workable financing concept for
the incurred liabilities.

Callino's pre-selection customers can still dial the emergency
numbers 110 and 112, and the hotline on 0800 33 01000. Its call-
by-call number is 01075.


DAIMLERCHRYSLER: Denies Donlon Will Return to Germany
-----------------------------------------------------

DaimlerChrysler denied a report saying Chairman Juergen Schrempp
has called for U.S. arm Chrysler's financial controller James
Donlon's return to Germany, Dow Jones in its April 18 edition
said.

According to the report in German magazine Wirtschafts Woche,
Donlon was summoned to corporate headquarters in Germany on
October to help win back U.S. investors and improve transparency
in financial reporting.


EM.TV: Unveils Board Revamp
---------------------------

With the recent resignation of former supervisory board chairman
Nickolaus Becker, troubled media group EM.TV & Merchandising AG
has unveiled the changes in it supervisory board on Tuesday, Dow
Jones reported.

Bernd Thiemann, who is leaving his position as chairman of DG
BANK, will chair the new board. Roland Berger, Ronald Frohne, and
Klaus Hallig will also join current supervisory board members
Axel Kollar and Mathias Schwarz.

The board is pending shareholder approval at its August 1 annual
general meeting.


LANDESBANK BERLIN: Ratings Under Review for Possible Downgrade
--------------------------------------------------------------

Moody's Investors Service has on April 18 placed on review for
possible downgrade the Aa2 long-term debt and deposit ratings of
Landesbank Berlin GZ and the A1 long-term debt and deposit rating
of Bankgesellschaft Berlin AG.

The Prime-1 short-term deposit and debt ratings of Landesbank
Berlin and Bankgesellschaft Berlin are confirmed as is the Aaa
Public-Sector Pfandbrief rating and C+ financial strength rating
of Landesbank Berlin. The C- financial strength rating of
Bankgesellschaft Berlin remains on review for possible downgrade.
The C+ FSR of Landesbank Berlin continues to have a negative
outlook owing to the asset quality problems that have emerged and
the still unresolved issue as to whether the consolidation of the
former Housing Law Corporation (Wohnungsbau-Kreditanstalt Berlin)
constitutes illegal aid under EU rules.

Moody's stated that the review for possible downgrade at both
Landesbank Berlin and Bankgesellschaft Berlin is prompted by the
increasing need for a meaningful capital injection at
Bankgesellschaft Berlin at a time when the financial profile of
Land Berlin (the majority owner of the group) is itself under
pressure.

As such the review for possible downgrade will focus on the
magnitude of fresh capital required and the extent to which such
a capital injection further burdens the already stretched budgets
of Land Berlin. The long-term rating review will also assess the
impact of any changes in the group's ownership structure or
activities mix, to the extent that such changes will occur.

Moody's added however that it remains convinced that Land Berlin
will provide adequate support to Landesbank Berlin, if needed,
based on its support obligations under Anstaltslast and
Gewaehrtraegerhaftung. In the case of Bangesellschaft Berlin
(Landesbank Berlin's parent) these statutory support mechanisms
do not apply; however Land Berlin has in the past expressed its
commitment to support the BGB group as a whole.

Land Berlin was instrumental in the creation of the Berlin-based
banking group in 1994 and is furthermore contractually committed
to maintaining a majority stake in the group until 2023. The
rating agency noted that these support considerations -- explicit
in the case of Landesbank Berlin and implicit in the case of BGB
-- continue to be relevant in underpinning these two banks' long-
term ratings at their respective high levels.

On a more general note, Moody's reiterated that it does not view
Bankgesellschaft Berlin's stresses to be symptomatic of a larger
problem affecting German banks on a systemic basis. Instead, they
are particular to the Berlin-based banking group because of the
type of lending (predominantly property), the softer conditions
under which some of these credits were extended, and the more
difficult economic environment of Berlin and the surrounding new
Laender it operates in.


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


DIOSGYOR STEELWORKS: Italian Buyer to Revive DAM
------------------------------------------------

Italy's Cogne Acciai Speciali said it would boost production,
widen the product range and raise DAM or Diosgyor Steelworks'
environmental standards, according to the April 16 edition of
Budapest Business Journal. It declined to disclose detailed
information on the necessary investments or on possible
redundancies.

DAM's new owner will send a team of five executives from Italy to
supervise the restructuring program but will also seek a team of
Hungarian managers.

Cogne has paid Ft 4.35 billion ($14.7 million) for assets of the
old steelworks, which had been previously in receivership since
March of last year. Receiver Cash & Limes managed to keep the
plant operational through bank loans throughout most of the
period of receivership.


MECSEK TOURS: Baranya to Sell Tourist Company
---------------------------------------------

To help finance the construction of an airport at Pogany, Baranya
County Municipality has decided to sell the loss-making tourism
company Mecsek Tours Kft in an open tender, according to the
Monday edition of Hungary AM.

Mecsek's assets are valued at Ft1.5 billion.


STATE RAILWAYS: Posts Ft22.2 Billion Loss
-----------------------------------------

Hungarian State Railways Rt (MAV) has posted losses of Ft22.2
billion for 2000, Hungary AM in its April 16 report said. It
further expects losses of Ft33.4 billion this year.


SYNERGON RT: Reports Losses of Ft1 Billion
------------------------------------------

IT company Synergon Rt has reported unconsolidated losses in 2000
of Ft1 billion, while consolidated losses came to Ft908 million,
Hungary AM reported on Monday.


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


EIRCOM PLC: EGM Precedes Annual Results
---------------------------------------

Shareholders of Eircom are being asked to vote on the demerger of
Eircell from Eircom at an extraordinary general meeting on May 11
but the financial results for the year to the end of March will
not be announced until May 31, according to The Irish Times'
report yesterday.

The most up to date annual results provided were for the six
months to the end of September 2000. These results do not show
the operating performance of the businesses in the months from
September.

Eircom could not release figures for the year to end-March
because these were not yet audited and the Irish Stock Exchange
would not allow the release of unaudited figures.


EIRCOM PLC: Meridian Secures Court Ruling
-----------------------------------------

Meridian Communications won a temporary High Court injunction on
Wednesday preventing Eircell to cut off supply to its customers,
according to The Irish Times' April 19 report.

Meridian chairman Sean Bolger alleged that Eircell attempted to
destroy Meridian's business and that it was essential for
Meridian's assets to be protected by continuing its business and
maintaining its customers.

Bolger further added that communications with Eircell led him to
conclude that it proposed terminating service supply to Meridian,
which would mean Meridian customers would lose the use of their
mobile phones.

The order, which continues until next week, also restrains
Eircell from presenting a petition to wind up Meridian without
the court's permission.


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


KPN NV: Says It Is Open to Takeover Offers
------------------------------------------

Telecommunications group Royal KPN NV confirmed it would be ready
to consider any proposed merger or takeover that would strengthen
the company, Dow Jones reported on Wednesday.

According to KPN spokesman Bram Oudshoorn, they are interested in
talking to any company for a close cooperation to strengthen KPN.
He said KPN is also in talks with several companies about
possible cooperation on sharing the cost of building third
generation mobile phone networks, but declined to name them.

KPN Chief Executive Paul Smits suggested that Telecom Italia
Mobile and KPN have discussed expanding the partnership between
the two companies.


=====================
S W I T Z E R L A N D
=====================


SAIRGROUP: French Airlines Strike Grounds Flights
-------------------------------------------------

Air travelers in France faced major disruptions on Wednesday when
all domestic flights on Air Liberte and AOM airlines to major
cities were canceled due to employees' protest on planned job
cuts, Dow Jones reported. Long-distance flights were, however,
spared by the strike.

Unions called for the one-day strike following an announcement
last week by the airlines' chairman Marc Rochet. The unions said
the restructuring plan would include a layoff of about 1,500.

SAirGroup, which owns roughly a 49% stake in the French airlines,
blamed its investments in foreign airlines, including those in
France, Belgium and Germany, in the group's loss of CHF2.9
billion for 2000.


SAIRGROUP: Plunges Amidst Legal Worries
---------------------------------------

Shares in troubled Swiss aviation conglomerate SAirGroup dropped
to 102.75 Swiss francs on Tuesday as retail investors dumped the
stock amid continued negative publicity ahead of a key
shareholders meeting, according to Reuters' report.

SAirGroup executive chairman Mario Corti will unveil on April 25
the outlines of a new Swissair Group and announce decisions on
the future of three French airline subsidiaries that are draining
80 million Swiss francs each month.

Possible lawsuits seek to focus on who's to blame for those
group's losses in 2000. A Zurich prosecutor has started a
criminal investigation to establish whether disclosure and
accounting rules were broken while French corporate governance
consultant Deminor questioned some of the transactions between
the Swiss group and its foreign subsidiaries. Shareholders are
also considering whether to sue management over mistakes and
money lost.


ZURICH FINANCIAL: Scots Safe From UK Redundancy
-----------------------------------------------

Zurich Financial Services' Scottish employees and franchisers
will not be affected by the group's announcement that it would
cut 550 UK jobs, The Scotsman newspaper in its April 19 edition
said.

According to a spokeswoman, the job losses will come from the
Swindon and Cheltenham offices of the group's UK life insurance
division.  

The job cuts at ZFS' life division are part of a larger
restructuring program carried out by chief executive Ray
Greenshields.


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


BALTIMORE TECHNOLOGIES: Shares Fall in London And US
----------------------------------------------------

Baltimore Technologies was under further selling pressure on
Tuesday as its shares fell 12.3pc on the Nasdaq to close at
$2.06, the Irish Independent reported on Wednesday. The Internet
security company was down 11pc to stg67p in London.

It's shares last week also plunged 20pc after it issued its
second profits warning in three weeks. The warning prompted
analysts to predict the Baltimore will now shed jobs.

Meanwhile, some institutional investors in Baltimore were seeking
the resignation of its chief executive Fran Rooney, but a company
spokesman said Rooney had no intention of leaving as he is fully
committed to the company.


CAMMELL LAIRD: Receivers to Axe More Jobs in UK
-----------------------------------------------

Receivers PriceWaterhouseCoopers for the troubled shipbuilder
Cammell Laird plan to cut 110 jobs at Teesside, 150 cuts at
Birkenhead, north-west England, and around 60 redundancies at
Tyneside, north-east England, BBC News in its Wednesday edition
said.

"Work at the Teesside yard is now virtually complete and no new
work is available in the short term," PwC said in statement.

PwC receiver Edward Klempka was reported as saying that they were
talking to Cammell Laird's directors about a possible management
buy-out. Two other parties have made approaches for various bits
of the group.


RAILTRACK GROUP: Faces Legal Action on Contracts
------------------------------------------------

Operating companies have threatened legal action against
Railtrack group over compensation, the Financial Times reported
on Tuesday.

To recall, Railtrack has offered operators GBP400 million for
late and cancelled services and passenger compensation. These
operators now want compensation for long-term losses because
passengers have been scared off by the poor service.

Virgin Trains, which could start proceedings this week, claims
Railtrack owes them GBP100 million for lost business in the first
year after the fatal Hatfield accident in October. Railtrack has
rejected the claim.

National Express and GNER have also threatened to sue Railtrack.



       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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