/raid1/www/Hosts/bankrupt/TCREUR_Public/010507.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

              Monday, May 07, 2001, Vol. 2, No. 89


                            Headlines


B E L G I U M

LERNOUT & HAUSPIE:  Co-Founder Arrest Hinders Sail


G E R M A N Y

MICROLOGICA AG:  Tenovis Acquires MMC Business
PHILIPP HOLZMANN:  Additional Provisions Increase Loss


G R E E C E

ENTERPRISE SHIPHOLDING:  Moody's Downgrades To C From Caa1


R U S S I A

NTV:  Announces Initiatives to Strengthen Station


S W I T Z E R L A N D

ISMM:  Vivendi Confirms Financial Support
SAIRGROUP:  French Airline Unions Reject Reorg Plan
SWISSAIR GROUP:  Restructures Itself


U N I T E D   K I N G D O M

BRITISH TELECOM:  Will Sell London Headquarters
BRIGHT STATION:  Statement Re Recent Press Comment
CORUS GROUP:  Welcomes Govt Plans For Steelworkers
CORUS GROUP:  Corus To Push On With 6,050 Job Cuts
CORUS GROUP:  Meeting with National Trade Union Reps
HUNTINGDON LIFE:  Huntingdon Hit As Bank Pulls Out
MOTOROLA:  Motorola Defends Bonus Payouts
WILLIAM BAIRD:  S-holders Defeat Allotment Resolutions



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


LERNOUT & HAUSPIE:  Co-Founder Arrest Hinders Sail
--------------------------------------------------

The arrest of Pol Hauspie, co-founder of Lernout & Hauspie,
hinders his attempts to provide financial support to Sail, the
language development group based in Ypres, which was formerly
owned by Flemish investment fund FLV Fund, De Standaard said  
Wednesday.

Hauspie was frantically seeking new financial means to ensure
the group's continuity in recent weeks.

The Sail project has been severely damaged by the downfall of
Lernout & Hauspie.  Hauspie's detention may well be the fatal
blow to the project. An insider said liquidation of the company
will not be far off.



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


MICROLOGICA AG:  Tenovis Acquires MMC Business
----------------------------------------------

The contract for the sale of the core business of Micrologica
has today been signed by the managing director of Tenovis GmbH &
Co KG, Peter B. Zaboji, and the bankruptcy proceedings
administrator for Micrologica AG, Berthold Brinkmann. The
preliminary creditors committee for the bankruptcy proceedings
provided contract approval, according to a press release in
Frankfurt Stock Exchange May 3, 2001.

The negotiations between Tenovis and Micrologica, which began  
March 29, 2001, have been successfully completed. Effective
retroactively to May 1, 2001, the "Tenovis Business
Communication GmbH" that has  been newly formed by Tenovis will
assume the relationships and the maintenance contracts with the
existing customer base and other interested parties, the
software rights in the MCC (Micrologica Communication Center) as
well as 73 predominant employees at the Bargteheide location.
With the purchase of these activities, Tenovis wants to
significantly increase its market share in the area of Contact
Center Solutions in order to potentially advance to the leading
position under the suppliers of Contact Centers.

The smaller Micrologica AG, which will continue to be stock
exchange-listed, will maintain 12 employees and the profitable
pharmaceuticals wholesale services business and the other
activities of the group. The size of the managing board
will be adjusted to the company and the managing board members
Kilian Krieger and Michael Seidel will leave the company on June
30, 2001. Andreas von Arnim as  the remaining board member and
the bankruptcy proceedings administrator Berthold Brinkmann will
review the possibility of an insolvency flat to secure the
lasting sustainability of the company.


PHILIPP HOLZMANN:  Additional Provisions Increase Loss
------------------------------------------------------

Philipp Holzmann will have to declare a loss of DM 156 million
for the Group and DM 92 million for the parent company (AG) as
of the end of the 2000 fiscal year, according to a company press
release May 3, 2001. The provisional figures still showed a loss
forecast of DM 100 million and DM 40 million, respectively. The
increase in the deficit at year end came to the fore during the
elucidation phase of balance sheet preparation. The deficit is
due to a higher amount of provisions and accruals set up for
taxes, of DM 30 million, allowances for anticipated losses of DM
16 million, and further accounting measures totaling another DM
10 million.

The operating result achieved in the past fiscal year under
extremely adverse conditions on the domestic market attests to
the economic stabilization of the enterprise as well as a
substantially improved competitiveness.

Moreover, the net loss for the year is primarily attributable to
the unpredictably negative cyclical trend in the domestic
construction industry and the impact of this situation on
earnings, output and order inflow of the company in Germany.
Another important reason is the failure to book forecast income
in the amount of DM 100 million from the originally planned sale
of real estate and land to the lending banks which did not
materialize because of discrepancies among the parties in the
appraisal of the reasonable price. As a result, additional, non-
budgeted interest expenses in the amount of DM 50 million were
incurred in the past fiscal year. Eventually, the restructuring
costs turned out to be substantially higher than budgeted
because the actions taken exceeded by far the scope of the
original concept. The company already reported on the causes of
the deficit when publishing the provisional results for the 2000
fiscal year.



===========
G R E E C E
===========


ENTERPRISE SHIPHOLDING:  Moody's Downgrades To C From Caa1
----------------------------------------------------------

Moody's Investors Service today has downgraded to C from Caa1
the rating for senior notes of Enterprises Shipholding
Corporation ("Enterprises"). The downgrade reflects the
company's announcement to consider a restructuring of debt and
the intention not to pay interest on the senior notes which is
due in May 2001. The senior implied rating has also been
downgraded to C from Caa1, the issuer rating has been lowered to
C from Caa2.

The company's failure to meet interest payment in Moody's view
constitutes a default on the company's debt. The company
appointed a financial advisor to assess the restructuring
alternatives for Enterprises. The C rating for the senior notes
reflects Moody's view that a potential restructuring of the
outstanding debt will likely involve significant losses for
noteholders due to the illiquid asset structure, high debt
levels and the secured nature of a $38 million credit facility.
Enterprises has said that it will continue to meet obligations
under the credit facility.

Moody's will monitor the company's discussions with noteholders
with respect to the level of debt recovery to be expected and
closely watch potential debt restructuring negotiations.

Enterprises Shipholding Corporation, headquartered in Athens,
Greece, is one of the leading independent owners and operators
of refrigerated cargo vessels ("reefers"). The company has a
long-standing presence in the industry and a diversified
customer base.



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


NTV:  Announces Initiatives to Strengthen Station
-------------------------------------------------

NTV, the Russian television network, today announced a series of
initiatives to strengthen the network's financial condition
while preserving editorial independence, PR Newswire said  
Thursday.

"We are dedicated to preserving editorial independence and
providing quality reporting that is free of government
interference," said Boris Jordan, NTV's General Director. "While
we must address NTV's substantial financial challenges, the
station remains a valuable asset that with proper management,
will provide long-term value for investors."

To accomplish the goals of the program, Jordan and his
management team are implementing a two-fold program to
strengthen the company's financial position and enhance the
quality of its content and programming. Specifically, these
initiatives include:

-Completion of independent audit of the Company's financial
statements for 1999 and 2000 by PriceWaterhouseCoopers.  The
audit under Russian Statutory Accounting Principles is expected
to be available on or about May 15, and an audited report using
U.S. GAAP  is expected to beavailable in June.

-Development and implementation of a comprehensive system of
financial controls, including a budget with detailed balance
sheet and cash flow statements.

-Recruitment of industry-experienced, professional managers,
including the Company's first Chief Financial Officer.

-Settlement of outstanding invoices, fees and salaries.

-Recruitment and retention of talented news professionals to
work under newly elected Chief News Editor, Tatiana Mitkova.

-Appointment of Editorial Board comprising key journalists and
news producers at NTV.

-Appointment of an Advisory Board on journalistic "best
practices" including recognized experts from a variety of
disciplines.

Jordan continued: "We welcome anyone who wishes to judge the
success of these initiatives to view our programs and watch our
coverage of the news events in Russia and then determine whether
we have indeed met the high standards we have set for ourselves."

NTV was founded in 1993 by Vladimir Gusinsky as part of the
Media-Most group of companies. On April 3 this year a majority
group of shareholders elected a new Board of Directors for NTV
following concern over the financial management of the company.
The new Board appointed Boris Jordan General Director (CEO). At
the time of the change in management NTV had outstanding debts
in excess of $100 million.



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


ISMM:  Vivendi Confirms Financial Support
-----------------------------------------

International Sports Media and Marketing the Swiss sports
marketing company, was given a one-month stay of execution
yesterday after Vivendi Universal confirmed it would acquire it,
the Financial Times said Wednesday.


ISMM had asked for a three-month reprieve from bankruptcy from
the Cantonal court in Zug. Vivendi, the Paris-based media and
environmental services group, will invest in ISMM to help it
stay afloat over that period.


SAIRGROUP:  French Airline Unions Reject Reorg Plan
---------------------------------------------------

French airlines AOM, Air Liberte and Air Littoral unions called
on chairman March Rochet to stop restructuring plans for the
troubled SAirGroup unit airlines, which they insist have no
economic basis, AFX News said Thursday.

The chairman plans to lay off employees and lessen the airlines'
fleet from 50 to 27 aircrafts, as part of cost reduction
program.

The unions described the plan as "incoherent and absurd".

They called on shareholders SAirGroup and Marine-Wendel for
assistance to rescue the airlines before abandoning their
holding.


SWISSAIR GROUP:  Restructures Itself
------------------------------------

Swissair Group will try to prevent job cuts as it restructures
itself. According to CEO Mario Corti, the IT subsidiary Atraxis
is next in line to be sold, said AFX News May 3, 2001.

Corti said Atraxis will be sold completely or to have a third-
party take a majority stake.



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

BRITISH TELECOM:  Will Sell London Headquarters
-----------------------------------------------

British Telecom, which has been managing to trim its $45 billion
debt, said May 3 it planned to sell its headquarters in London's
financial district, Agencia EFE said in its May 3 report. BT
said its offices in The City were too large and it planned to
sell them within 18 months.

According to the company, the move would not result in the
elimination of any jobs.

BT's headquarters were moved to London after the company was
privatized in 1984.


BRIGHT STATION:  Statement Re Recent Press Comment
--------------------------------------------------

In light of recent press comment regarding Bright Station's
(NASDAQ:BSTN; LSE:BSN) current available cash position,
following its announcement of April 30, 2001, the Board wishes
to make the following clarification with regard to its current
cash position, according to the May 3 edition of Business Wire.

As of April 30, 2001, Bright Station had available cash of
(pound) 2.9 million, and as previously stated, the Board is
taking radical action that will significantly 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.

Based on the current status of these discussions, the Board
remains confident that additional finance will be made available
to the Group.


CORUS GROUP:  Welcomes Govt Plans For Steelworkers
--------------------------------------------------

Corus welcomes the announcements May 3 of Government plans to
support redundant UK steelworkers and to regenerate the areas
affected by restructuring of the industry.

A spokesman said:

'We are pleased that the Government has re-introduced a revised
version of ISERBS (Steel Readaptation Benefits Scheme). This will
benefit our employees affected by UK restructuring and efficiency
measures. It follows representations Corus made to the Department
of Trade & Industry and to Department for Employment & Education
during the second half of 2000.'

This will benefit our employees affected by UK restructuring and
efficiency measures. It follows representations Corus made to
the Department of Trade & Industry and to Department for
Employment & Education during the second half of 2000.'

We also welcome measures to regenerate the areas affected by
steel closures in Wales and the North of England. Corus will
work with all relevant agencies to facilitate the regeneration
and redevelopment of its sites.


CORUS GROUP:  Corus To Push On With 6,050 Job Cuts
--------------------------------------------------

Corus has forged ahead with plans to close three of its plants
in Wales after it refused an alternative proposal drawn up by
unions, Personnel Today said Thursday. Corus still intends to
make 6,050 staff redundant following the 90-day consultation
period.

It was announced by the Government that each of the redundant
workers would receive 2,500 pounds on top of their redundancy
packages from the steel giant.

The ISTC union had tabled proposals for the closures, which would
postpone the 6,050 job losses to the end of the year when
economic conditions might have improved.

But Corus has confirmed that it will shut down the plants at
Llanwern, Ebbw Vale and Bryn Gwyn in South Wales.


CORUS GROUP:  Meeting with National Trade Union Reps
----------------------------------------------------

Corus Group PLC released the following press release May 3,
2001:

Corus met with National Trade Union officials on May 3, 2001, at
their request, following the series of meetings that have been
held at each location affected by the restructuring announcement
made on February 1.

Corus has confirmed that the alternative proposals have been
rejected following full consideration and evaluation. The
circumstances facing Corus in the UK remain as outlined in our
February 1 announcement.

The Company has now agreed a closure programme with Unions at
Llanwern, Ebbw Vale and Bryngwn. Following Thursday's meeting,
Corus can now focus on the implementation of its restructuring
announcement and, together with Unions and Government, support
those affected and their communities.

We understand that the Government may be reconsidering the
renewal of the steel readaptation benefits scheme (ISERBS),
which was terminated in 1994. Corus held a number of bilateral
meetings with the DTI and DfEE between June and December last
year, but at that time the Government were not prepared to re-
consider. Corus has again raised this matter with the DTI
recently as it would welcome the reintroduction of the scheme.


HUNTINGDON LIFE:  Huntingdon Hit As Bank Pulls Out
--------------------------------------------------

Huntingdon Life Sciences PLC, which is being hit by pressures
from animal rights protesters, activists and the defection of
various financial backers, suffered another blow on Wednesday
when Allied Irish Bank pulled out of the consortium that rescued
it from bankruptcy, the Daily Telegraph said Thursday.

Huntingdon Life Sciences Group PLC is one of the world's leading
Contract Research Organizations providing product development
services to the pharmaceutical, agrochemical and biotechnology
industries.


MOTOROLA:  Motorola Defends Bonus Payouts
-----------------------------------------

Motorola has defended the 2.5 million pounds in bonuses paid to
five of its executives only weeks before the closure of its
Scottish factory, Personnel Today said on Wednesday.

The payouts to workers at Motorola's head office in Chicago
which were criticized by union leaders in the United Kingdom,
were designed to retain key talent at boardroom level, said the
company.

Chairman, Christopher Galvin accepted 870,000 pounds bonus on
top of his 890,000 pounds salary. Vice-presidents, Frederick
Tucker and Keith Bane were given 380,000 pounds each. Carl
Koenemann, Finance chief awarded 310,000 pounds.


WILLIAM BAIRD:  S-holders Defeat Allotment Resolutions
------------------------------------------------------

Troubled textile firm William Baird PLC said shareholders at its
annual general meeting defeated an ordinary resolution to renew
the authority of the directors to allot shares, and also
defeated a special resolution to renew the authority of the
directors to allot equity securities for cash, according to AFX
Wednesday.

William Baird designs, manufactures and sells clothing
principally in the United Kingdom, Europe and Asia.









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. Lyndsey Resnick,
and Ma. D. Cristina Pernites, Editors.

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

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