/raid1/www/Hosts/bankrupt/TCREUR_Public/010504.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, May 04, 2001, Vol. 2, No. 88


                            Headlines


B E L G I U M

LERNOUT & HAUSPIE: Deadline Set For Creditor Claims
LERNOUT & HAUSPIE:  No Appeal For Lernout & Hauspie


B U L G A R I A

BALKAN AIRLINES:  Zeevi Group To Discuss Sale Of Stake


D E N M A R K

I-DATA:  First Quarter Loss Soars


L I T H U A N I A

MAZEIKIU NAFTA:  Reports First Quarter Loss


N O R W A Y

INFERCOR:  Declares Insolvency


P O R T U G A L

SONAE SGPS:  Posts First Quarter Losses


S W I T Z E R L A N D

SAIRGROUP:  SAirGroup In New Structure Plan


U N I T E D   K I N G D O M

BRIGHT STATION:  Securing New Funds A Priority
BRITISH TELECOM: Vodafone Agrees To Buy Stake In BT
CAMMELL LAIRD:  Two Month's Work Left At Laird's
MARKS & SPENCER:  Appoints Alain Juillet As New CEO
MARKS & SPENCER:  Employees Plan London Protest




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B E L G I U M
=============  


LERNOUT & HAUSPIE: Deadline Set For Creditor Claims
---------------------------------------------------

Lernout & Hauspie Speech Products N.V. (EASDAQ: LHSP, OTC:LHSPQ),
Dictaphone Corporation and L&H Holdings USA, Inc. (formerly
Dragon Systems, Inc.) (collectively, the "L&H Group") wishes to
advise creditors and parties-in-interest that, pursuant to an
order of the United States Bankruptcy Court for the District of
Delaware (the "U.S. Bankruptcy Court") dated April 18, 2001,
creditors and parties-in-interest who wish to assert a claim
arising or deemed to have arisen prior to November 29, 2000 in
the chapter 11 bankruptcy cases of the L&H Group currently
pending in the U.S. Bankruptcy Court must file a proof of claim
against that member of the L&H Group on or before June 11, 2001,
by 4:00 p.m., New York Time (the "Filing Deadline"), the May 2
edition of Business Wire said.

The establishment of the Filing Deadline is part of the
administrative process of reconciling claims against the L&H
Group arising or deemed to have arisen prior to November 29,
2000. Any creditor or party-in-interest that wishes to assert a
claim against any member of the L&H Group must file, on or before
the Filing Deadline, an original proof of claim form against that
member of the L&H Group, substantially in conformity with the
proof of claim form prepared for the L&H Group's chapter 11
bankruptcy cases. A copy of the proof of claim form and a notice
which, among other things, explains the Filing Deadline and
contains detailed instructions for filing a proof of claim, can
be obtained by calling Donlin Recano & Company, Inc. at (212)
481-1411, between 10:00 a.m. and 4:00 p.m., New York Time.


LERNOUT & HAUSPIE:  No Appeal For Lernout & Hauspie
---------------------------------------------------

Lawyers for the co-founders of troubled Belgian voice recognition
software developer L&H said their clients would not appeal a
court decision which will keep them in jail for two more weeks,
after their arrest last week on fraud charges, AP Online said
Wednesday.

Dirk Van Gerven, Jo Lernout's lawyer, said his client would not
appeal so as not to slow the investigation into the charges of
falsifying documents and stock manipulation.

Pol Hauspie's lawyers also confirmed that they would not appeal.

A court in Ieper extended the detention until the next hearing in
two weeks. Lernout is being held at a jail in Ieper, while
Hauspie was being detained in a larger facility in Brugge for
health reasons.



===============
B U L G A R I A
===============


BALKAN AIRLINES:  Zeevi Group To Discuss Sale Of Stake
------------------------------------------------------

Israel's Zeevi Group is ready to negotiate offering its 75
percent stake in indebted Balkan Airlines to an interested
investor, the administrator of the airline said on Wednesday, the
May 2 edition of Namnews reported.

Balkan administrator Ralitsa Topchieva told Reuters by telephone
that senior officials of the group had shown interest in such an
operation, when she met them in Israel over the weekend.

Last week Topchieva said that a potential investor, whose
identity was not disclosed, had suggested a scheme for the
company's rehabilitation. The plan included acquiring the shares
in Balkan held by Zeevi's companies and paying off the debts to
the remaining creditors.

Viktor Melamed, Balkan spokesman reported earlier that the
potential investor is a European consortium.

In March, a Sofia court launched insolvency proceedings against
Balkan Airlines after local insurer Bulstrad, controlled by
Dutch-based TBI Holding, filed a claim for $11 million.



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D E N M A R K
=============


I-DATA:  First Quarter Loss Soars
---------------------------------

Troubled Danish Internet solutions and printing services company
I-Data posted a loss before interest, tax and amortization of
40.8 million crowns ($4.9 million) in the first quarter of 2001,
almost 10 times worse than in the same period in 2000, according
to the May 2 edition of Reuters.

Weaker sales and a changed product mix in its Internet Eicon
Networks unit affected revenue and earnings, I-Data said in a
statement.

The company sold its 47.5 percent stake in computer chip maker
Exbit to U.S. based Vitesse Semiconductor Corp on April 2, for
3.6 percent of Vitesse shares.

I-Data cut its full-year 2001 revenue forecast to 1.1 to 1.3
billion from 1.5 billion crowns previously. The company expects
both revenue and earnings growth in the second quarter and a
positive cash flow from the third quarter.



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L I T H U A N I A
=================


MAZEIKIU NAFTA:  Reports First Quarter Loss
-------------------------------------------

Oil refiner Mazeikiu Nafta reported its first quarter loss more
than quadrupled year-on-year caused by low Russian crude
supplies, in a Reuters report published Wednesday.

Mazeikiu, one-third of which is owned by U.S. energy group
Williams, revealed a first quarter loss of 84.7 million litas
($21.17 million) said the U.S. GAAP standards, against an 18.8
million litas loss in the same period in 2000.

According to a company statement, Mazeikiu had to purchase
substantial amounts of feedstock in December to prevent crude oil
deficit after a breakdown in long-term supply discussions with
Russian oil giant LUKOIL, causing a loss of 61 million litas in
January.

Mazeikiu posted a full year 2000 loss of 179.1 million litas
($44.75 million) versus 158.9 million litas loss in 1999.

The government, which owns 59 percent of the company, said it
will call an emergency meeting with Mazeikiu and Williams to
discuss the first quarter results it described as "worrisome".



===========
N O R W A Y
===========


INFERCOR:  Declares Insolvency
------------------------------

Norwegian company Infercor has been declared insolvent,
Aftenposten & World Reporter said in its April 27 edition. The
Internet software manufacturer, which was controlled by Norwegian
investment company Norsk Vekst, has total debts of 22 million
krone, and its assets do not exceed 3.4 million krone. Infercor's
creditors are likely to record large losses, specifically it
largest shareholder, Norsk Vekst.

Norsk Vekst announced on April 23 that it has written down its
investment in Infercor AB, Infercor's Swedish parent company, by
NKr67.8m. The write down is due to Norsk Vekst's concern at
Infercor's financial situation. Norsk Vekst owns over 70 per cent
of Infercor.



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P O R T U G A L
===============


SONAE SGPS:  Posts First Quarter Losses
---------------------------------------

Portuguese company Sonae SGPS reported consolidated losses of
11.9 billion escudos in the first quarter of this year, against
losses of 8.5 billion escudos in the period last year, the May 2
edition of Namnews said.

However, turnover increased to 6.6 percent at 1.43 billion
escudos as a result of 59 percent gain in telecom turnover.  Wood
product sales were up 7.5 percent.

Sonae Industria, SGPS, SA is a manufacturer of wood products such
as clipboard panels, MDF, laminates, chemicals and other related
products. It is currently the fourth largest European group in
the wood based panels sector.



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


SAIRGROUP:  SAirGroup In New Structure Plan
-------------------------------------------

SAirGroup has revealed a series of actions aimed at restoring the
company's fortunes following record losses last year.

The new CEO Mario Corti said during the company's 8th annual
general meeting on April 25, the group intended to get rid of its
investments in French regional airlines AOM and Air Liberte and
had secured 1 billion Swiss Francs ($590 million) credit line,
according to the Flight International in its May 1 edition.

SAirGroup will change its name to the Swissair Group, as part of
the restructuring, after its flagship airline, effective
immediately. Majority shareholder Taitbout and the Swiss group
are only guaranteeing the two airlines capital needs until the
end of June to allow them time to prepare a restructuring plan.

AOM-Air Liberte chairman and CEO Marc Rochet said he was seeking
European buyers for the airlines. At least 2,700 of their 7,500
jobs will be lost according to French pilot unions, as the three
airlines retrench in an effort to stave off bankruptcy.

The Swissair Group's next priority is likely to make decisions on
the fate of its Belgian carrier, Sabena, during the third quarter
of the year.



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


BRIGHT STATION:  Securing New Funds A Priority
----------------------------------------------

Bright Station Plc, which provides an indexed online business
information service sourced principally in the United Kingdom and
North America, said it remains confident additional finance will
be made available to the group, AFX related Wednesday.

The comments came as a reaction to recent press comments on
Bright Station's low cash position.

Bright Station said, as of April 30, 2001, it had available cash
of 2.9 million sterling, and is taking radical action that will
reduce anticipated operational cash outflows during the remainder
of the second quarter.

Discussions regarding additional financing for the group continue
to progress, with additional opportunities having emerged since
the announcement on April 30, when it had said it seeks short
term funding from potential investors, Bright Station added.

Bright Station has reported a final pre-tax loss of 128.9 million
pounds.


BRITISH TELECOM: Vodafone Agrees To Buy Stake In BT
---------------------------------------------------

Vodafone Group Plc said it agreed to buy a 20% stake each in
Japan Telecom Co, J-Phone mobile-phone unit and a stake of
Spanish mobile operator Airtel Moviles SA for the price of 846
billion yen ($6.93 billion) from British Telecommunications PLC,
according to a report by the Wall Street Journal released
Wednesday.

The combined negotiations will result in a net reduction in its
group debt by 4.4 billion pounds ($6.31 billion). Vodafone will
take on 782 million pounds of BT's debt guarantees in favor of
Japan Telecom, BT said.

Vodafone said it plans to partly finance the transactions through
the placement of new shares, which are expected to raise around 3
billion pounds.


CAMMELL LAIRD:  Two Month's Work Left At Laird's
------------------------------------------------

The future of Cammel Laird must be secured within two months or
it will run out of work and all remaining staff will be laid off,
according to Liverpoll Echo on its May 1 edition.

Ian Stokoe, the receiver, warned yesterday that the yard had only
enough work until end of June.

The Ministry of Defense is to make a final decision about whether
to continue with two existing contracts for work on royal fleet
auxiliary vessels.

The yard's two major contracts are the Lady of Man, a ferry owned
by the Isle of Man steam packet company, and the royal fleet
auxiliary oil tanker, Argus.

An order to refit RFA fort George, another tanker, was signed
before Laird's collapsed, but the MoD is reviewing the decision
to proceed with this contract, too.

Unless new work is found, it will not be possible to sell the
yard as a going concern after June.


MARKS & SPENCER:  Appoints Alain Juillet As New CEO
--------------------------------------------------

The board of Marks & Spencer Plc's French subsidiary has
appointed Alain Juillet as CEO and chairman to oversee the
business's withdrawal from the local market, according to AFX on
Wednesday.

Juillet replaces Clive Nickolds, who will stay with the group
with the responsibility for continental Europe, the spokesman
said, adding that Nickolds would not have been able to handle
both that task and the France closures.


MARKS & SPENCER:  Employees Plan London Protest
-----------------------------------------------

French unions from Marks & Spencer said they have placed
collection boxes outside stores to collect fares so that 1,700
employees facing the dismissal can protest outside the group's
London headquarters on May 17, AFX reported May 2.

About 400 Belgian workers are also expected at the demonstration,
including an unknown number of UK employees affected by the
company's restructuring.



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. Lyndsey Resnick,
and Cristina Pernites, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is $575 per half-year, delivered
via e-mail.  Additional e-mail subscriptions for members of the
same firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 301/951-6400.


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