/raid1/www/Hosts/bankrupt/TCREUR_Public/010508.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 08, 2001, Vol. 2, No. 90


                            Headlines

* B E L G I U M *

LERNOUT & HAUSPIE:  Co-Founders Extend Stay in Jail

* C Z E C H   R E P U B L I C *

SKODA MNICHOVO:  Praga Acquires Liaz Truck
VITKOVICE: Posts Big Losses

* G E R M A N Y *

DAIMLERCHRYSLER AG:  Chrysler Appoints Jeffrey Bell as New VP-MC
DAIMLERCHRYSLER AG:  Faces Fine for Breaking Labor Law
TEAMWORK INFORMATION:  Presents Provisional Figures for 2000

* H U N G A R Y *

DUNAFERR GROUP:  Expects Ft 2.9 Billion Deficit

* I R E L A N D *

AN POST:  Losses at an Post Unsustainable

* I T A L Y *

RINASCENTE:  Posts Net Loss of 16.8 Million Euros in Q1

* R U S S I A *

NTV:  Moscow Court Hands Formal Control of NTV to Gazprom

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

SAIRGROUP:  French Airlines to Announce Restructuring

* U N I T E D   K I N G D O M *

BRITISH TELECOM:  Sell Shares to Trim Massive Debt
BRITISH TELECOM:  Sells Maxis Stake to Reduce Debt
HUNTINGDON LIFE: MSF Backs Drug Firm
MARKS & SPENCER:  French Marks & Spencer Staff Shut Stores
MONEY CHANNEL:  Appoints Administrator


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


LERNOUT & HAUSPIE:  Co-Founders Extend Stay in Jail
---------------------------------------------------

Co-founders Jo Lernout and Pol Hauspie of troubled Lernout &
Hauspie will be extending their stay in jail for another month,
VNU Business Publication and World Reporter said on Thursday.
Both will stay in separate prisons in Belgium while an
investigation into fraud and stock price manipulation is carried
out.

Philipp Bodson, L&H new chief executive, said he was considering
selling the firm's assets to make the payments. A June 11
deadline has been set for US creditors to make their claims from
the period before November 29, 2000.


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


SKODA MNICHOVO:  Praga Acquires Liaz Truck
------------------------------------------

Praga Caslav is to acquire an order for the assembly of Liaz
trucks from bankrupt Skoda Mnichovo Hradiste in June.

Skoda MH production stopped in February after power distributors
stopped supplying energy to the heavily indebted company.  Skoda
MH currently has debts of 1.6 billion korunas, Czech AM said
Wednesday.


VITKOVICE: Posts Big Losses
----------------------------

Moravian steelworks Vitkovice reported audited losses of 9
billion korunas and revenues of 10.4 billion korunas, the loss
was attributed largely to provisioning, Czech AM said in its
April 27 report.

Vitkovice said its situation has improved after a court
settlement with creditors. The steel company expects to cut its
loss to 280 million korunas this year with operating profits of
525 million korunas.


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


DAIMLERCHRYSLER AG:  Chrysler Appoints Jeffrey Bell as New VP-MC
----------------------------------------------------------------
PR Newswire  May 3, 2001


Chrysler Group announced today that it has named Jeffrey Bell as
its new Vice President - Marketing Communications. Bell, who was
formerly Director - Retail Marketing and e-Business for Ford
Motor Company, will report to George Murphy, Senior Vice
President - Global Brand Marketing.

In this newly created position, Bell, 38, will be responsible for
driving all Brand Communications operations to increase
synergies, ensure consistent marketing messages across the
brands, and develop innovative marketing programs, leveraging the
company's strong brand portfolio.

"Jeff brings both domestic and international marketing experience
to the Chrysler Group, which will be invaluable in helping us to
continue to develop break-through product messages and unique
retail strategies around the world," said Murphy.

Bell joined Ford in 1989 with the Ford Customer Satisfaction
Group. Since then, he's held a number of positions in the field
organization as well as international operations, including posts
as the Director of Central European Operations and the Managing
Director of Ford Spain.

Bell has a master's of business administration in finance and
marketing from the Wharton School of Business and a master's in
international relations from the Johns Hopkins School of Advanced
International Studies. He also has a bachelor's degree in history
and Spanish from Kenyon College of Ohio.

In addition, DaimlerChrysler has hired Julie Roehm as the
Director - Marketing Communications, reporting to Bell. Roehm,
30, was previously the Car Marketing and Communications Manager
for Ford Motor Company. She joined Ford in 1995. Roehm led the
marketing efforts for the launch of the Ford Focus.

Roehm holds a bachelor's degree in civil engineering from Purdue
University and an MBA from the University of Chicago School of
Business.


DAIMLERCHRYSLER AG:  Faces Fine for Breaking Labor Law
------------------------------------------------------

DaimlerChrysler AG faces a fine for breaking labor law
regulations, reported Handelsblatt & AFX News in its May 4
report.

Reports said that workers within the automobile company
headquarters, administration and research development departments
have often been working more than 10 hours a day, which is not
allowed by German law.

DaimlerChyrsler AG has been investigated since the end of last
year and will institute proceedings in the coming weeks.

DaimlerChrysler was not prepared to comment.


TEAMWORK INFORMATION:  Presents Provisional Figures for 2000
------------------------------------------------------------

According to provisional, as yet uncertified figures, teamwork
information management AG achieved sales of 8.4 million euros in
fiscal year 2000. Provisional group sales amounted to 17.1
million euros, according to a press release in Frankfurt Stock
Exchange May 3, 2001.

Teamwork AG's net loss totaled 36.4 million euros. The
circumstances of the company's insolvency and the associated
rehabilitation action that has been taken had a particularly
adverse, increased impact on teamwork AG's results in 2000. 11.2
million euros of the net loss for the year were attributable to
write-downs on the book values of subsidiaries and affiliates.
Depreciation of current assets - mainly consisting in loans to
and other receivables from affiliated companies - totaled 10.0
million euros. In the year under review, the capitalized goodwill
of teamwork AG was amortized by 1.2 million euros to 0.5 euro (DM
1).

The balance sheet deficit not covered by shareholder's equity was
12.9 million euros as of the balance sheet date.

It is necessary to add an as yet uncertified sum of 844 thousand
euros to the accrued liabilities in the financial statements for
1999.

No further business figures for the group according to US GAAP
are available at present because of the insolvency situation. The
complete, certified financial statements for 2000 are scheduled
to be published by the end of May. The corrected financial
statements for 1999 are also due to be presented by then.

The Supervisory Board of teamwork information management AG has
resigned in the wake of the insolvency. The application for
reappointment has been submitted to the competent local court
(Amtsgericht Paderborn) together with the details of the proposed
persons.


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


DUNAFERR GROUP:  Expects Ft 2.9 Billion Deficit
-----------------------------------------------

Hungarian Dunaferr Group expects deficit of 2.9 billion forints
for 2001, compared to a projected 450 million forints by the
former management, CEO Laszlo Toth said yesterday. Reports from
unnamed sources said that the company's goal is to break even
this year, and has been attempting to reduce losses.

Toth said the steel maker group would submit a new business plan
to a board meeting later in May, Hungary AM reported Friday.


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


AN POST:  Losses at an Post Unsustainable
-----------------------------------------

The losses at state post office An Post will reach 12 million
pounds in 2001, said the minister for Public Enterprise, Mary
O'Rourke. The minister said the losses are worsening and
unsustainable, Estockex said Monday.

The biggest deficits will be in post office cities and towns than
in rural post offices. An inter-departmental group will provide a
blueprint for the future findings of post office network within
three to four months, according to O'Rourke.


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


RINASCENTE:  Posts Net Loss of 16.8 Million Euros in Q1
-------------------------------------------------------

Rinascente, the Italian retail group reported a net loss of 16.8
million euros ($15 million) in the first quarter versus a loss of
19.5 million in 2000, Namnews reported May 4, 2001.  The group
said in a statement that seasonal effects impacted earnings in
the period.

Sales in the first quarter were 1.3 billion euros. Operating
losses were 10.2 million euros compared to a previous loss of
11.6 million. Consolidated net financial debt at the end of March
was 74.7 million euros compared to debt of 83 million at the end
of March in 2000.

La Rinascente SPA is involved in the retail and wholesale
sectors, operating and managing supermarket chains and department
stores throughout Italy. The group operates through the following
network of outlets: La Rinascente, Upim, SMA, Rinascente Citta
Mercato, Rinascente Gross, Bricocenter and Croff.


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

NTV:  Moscow Court Hands Formal Control of NTV to Gazprom
---------------------------------------------------------

The control of NTV television station has been handed by a
Russian court to gas monopoly RAO Gazprom, confirming its
acquisition of Russia's last independent broadcaster, according
to the May 4 edition of AFX News.

The court ruled Media-Most group to transfer 19 percent of NTV,
frozen because of debts owed by the channel to the gas giant, to
Gazprom subsidiary, Leadville Investment.

Media-Most was ordered to surrender 25 percent of shares in its
20 subsidiaries, including Moscow Echo radio and TNT television.


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


SAIRGROUP:  French Airlines to Announce Restructuring
-----------------------------------------------------

Chairman Marc Rochet of AOM and Air Liberte will announce his
restructuring plans for SairGroup's French airlines from May 15-
18, according to union representatives from the companies, AFX
News said Sunday.

Rochet is to meet with employee representative committees from
both airlines on Thursday but he was not expected to use the
occasion to outline his plans.


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


BRITISH TELECOM:  Sell Shares to Trim Massive Debt
--------------------------------------------------

British Telecom plans to sell $7.5 billion worth of stock to trim
its massive $45 billion debt burden, the Sunday Telegraph and
Agencia EFE said on Sunday. The company hopes to cut its debt by
$15 billion before the end of 2001.

BT would consider selling its BT Wireless unit for $30 billion.
Last week BT agreed to sell its stakes in Japan Telecom, Japanese
wireless unit J-Phone and Spain-based Airtel to Vodafone for $6.6
billion. The firm recently announced that it would offer $4.5
billion for the sale of its headquarters in its London financial
district.


BRITISH TELECOM:  Sells Maxis Stake to Reduce Debt
--------------------------------------------------

British Telecom agreed to sell 33 percent stake in Malaysian
company Maxis Communications Berhad for 350 million pounds, to
reduce 30 billion pounds of debt, Namnews said Friday.

BT will sell the stake to its partner in the venture, Usaha Tegas
Sdn Bhd, the company said in a statement distributed over the
Regulatory News Service.


HUNTINGDON LIFE: MSF Backs Drug Firm
------------------------------------
PR Newswire  May 2, 2001

MSF, the union for skilled and professional people, today gave
its whole- hearted support to the Association of the British
Pharmaceutical Industry (ABPI) in its threat to boycott financial
institutions who give in to animal rights extremists. MSF called
for this action earlier this year.

MSF represents the workers at the beleaguered research centre
Huntingdon Life Sciences and has campaigned for support for the
unit from government and the pharmaceutical companies for
scientists engaged in vital drug testing.

"Our concern has been for the protection of the workforce of HLS
and other research centres as well as the job security of
research and development staff in the pharmaceutical industry in
Britain. If testing is not done in Britain it will be done abroad
and the case for the big drug companies retaining R&D in this
country will be weakened. Thousands of highly skilled jobs would
be scattered to the four winds. All stakeholders have now
committed themselves to the industry. Government have changed the
law to protect workers from extremists; workers have bravely
faced the extremists and now the employers are fighting back as
well" said MSF National Secretary Roger Spiller.

In January this year MSF urged the Royal Bank of Scotland not to
give in to terrorists in considering its loan to Huntingdon Life
Sciences the laboratory where staff have been subjected to
violence and intimidation by animal rights activists.

MSF General Secretary Roger Lyons said, "MSF is delighted that
the pharmaceutical employers have joined with us, the government
and the medical research charities in defending scientific
testing in Britain. Thousands of jobs are at risk if the
financial institutions are allowed to pander to a small minority
of animal rights extremists.

"Animal welfare is best served by keeping drug testing in Britain
where regulation is strict and the scientific community is
working to reduce the need on animal testing."


MARKS & SPENCER:  French Marks & Spencer Staff Shut Stores
----------------------------------------------------------

Employees of Marks & Spencer and C&A Brenninkmeijer in France
protested against restructuring plans that could lead to store
closures and job losses at both companies, AFX News said on its
May 6 edition.

Some M&S outlets were closed in Paris as tension between
employees and management sharpened following a meeting with the
French division's new chairman Alain Juillet. He is reported to
have reiterated the chain's plans to shut down 18 shops and cut
1,700 workers by the end of 2001.

C&A formally denied reports that it plans to close six of its 51
French shops, shedding 100 full-time jobs, as part of its
implementation of the 35-week.


MONEY CHANNEL:  Appoints Administrator
--------------------------------------

Money Channel PLC, said it has appointed Michael Gercke a partner
at PricewaterhouseCoopers as administrator, said AFX News May 4,
2001.

Gercke said: "The administrators will be carrying out a rapid
review of the business and the appointment of administrators
provides an opportunity to seek a buyer or investor for the
Channel and some initial expressions of interest have already
been received."

The company said on Tuesday talks with third parties on its
financial future had failed. Money Channel is also thought to be
losing about 1 million pounds a month.

The company is a provider of news and information on investments
and consumer finance.


         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 Ma. Cristina D. Pernites, Editors.

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

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