/raid1/www/Hosts/bankrupt/TCREUR_Public/010604.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, June 04, 2001, Vol. 2, No. 108


                                           Headlines

* A U S T R I A *

LIBRO AG: May Face Branch Closures

* B E L G I U M *

HOGADATA: Files for Bankruptcy
LERNOUT & HAUSPIE: Inks Deal With TLC on Sole Distributorship
SABENA SA: Declines Comment on New Shareholders Search

* G E R M A N Y *

DEUTSCHE TELEKOM: Liberty Media Deal Stumbles
DORTMUNDER ACTIEN-BRAUEREI: Binding Brauerei to Manage Brewer
EM.TV: Asks for Deadline Extension
EM.TV: Hires U.S. Bank to Find Muppets Buyer
PIXELPARK AG: Cuts Down Foreign Units

* H U N G A R Y *

MALEV AIRLINES: Takes 77.5MM Euro Restructuring Loan

* L U X E M B O U R G *

CLEARSTREAM: Troubles Continue in Processing House

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

KPN NV: Plans on Share Issue
KPN NV: To Raise at Least EUR5 Billion on Rights Issue
LETSBUYIT.COM: Gets $2.56MM Cash Injection From Anonymous Donor
LETSBUYIT.COM: Narrows First-Quarter Losses to 15.2MM Euros
LETSBUYIT.COM: On Track to Beat Targets
NEWCONOMY NV: Posts 6.7MM Euros Loss
UNITED PAN-EUROPE: Fitch Withdraws UPC Rating

* R U S S I A *

GAZPROM: Blue Stream Credits to Increase Gazprom Debt
GAZPROM: Russia Fires Gazprom Chief

* S W E D E N *

BOLIDEN LIMITED: Faces $162MM Lawsuit

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

ANDRE & CIE: Creditor Protection Is Extended

* U N I T E D   K I N G D O M *

GAMEPLAY PLC: Posts Loss of 56.1MM Pounds
GLOBAL TELESYSTEMS: Eyes $1.9BB Restructuring


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


LIBRO AG: May Face Branch Closures
----------------------------------

Libro AG investor Anton Stahrlinger plans to reduce the retail
group's network by closing branches in Germany, as well as its
online activities through lion.cc, and even subsidiary Amadeus,
Wirtschaftsblatt  & World Reporter in its May 30 edition said.

However, Kurt Stiassny, head of Libro's owners, UIAG, does not
believe that a withdrawal from lion.cc is necessary. Stiassny
added that the group could continue to finance and operate the
portal through WAZ.


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


HOGADATA: Files for Bankruptcy
------------------------------

FLV Fund portfolio company Hogadata has filed for bankruptcy at
the Commercial Court in Antwerp, the May 29 Nasdaq Europe press
release said.

In April, FLV Fund already reported Hogadata's filing for
bankruptcy protection and announced that this would have no
effect on FLV Fund, since the Fund had already written off its
full participation in the Hogadata group.

In the fourth quarter of 2000, FLV Fund proceeded to a write off
for a total amount of US$3.7 million in shares and loans.


LERNOUT & HAUSPIE: Inks Deal With TLC on Sole Distributorship
-------------------------------------------------------------

The Learning Company (TLC), a leading publisher of productivity
and education software, has reached an agreement with L&H
Holdings USA, Inc. and L&H Applications USA, Inc. to be the sole
distributor of the L&H Voice Xpress(TM) and Dragon Naturally
Speaking(R) consumer product lines within the United States and
Canada, PR Newswire in its May 30 edition reported.

President John Shagoury of L&H's Speech and Language Solutions
Group said the deal would allow them to maximize their sales in
the consumer market. Further, the agreement will allow L&H to
focus its resources on marketing and selling their speech
recognition products in the corporate/enterprise market.

The agreement with L&H Holdings is subject to approval by the
United States Bankruptcy Court presiding over the company's
chapter 11 bankruptcy case.

Following bankruptcy court approval, The Learning Company plans
to re-launch the L&H retail product lines with strong promotion
and marketing support to take advantage of the second half of the
year's sales strength, as well as the post-holiday opportunities
for the first quarter of 2002 and beyond.


SABENA SA: Declines Comment on New Shareholders Search
------------------------------------------------------

Sabena Belgian World Airlines SA and principal shareholder
Belgian government declined to comment on speculation that
Scandinavian Airlines System (SAS) and American Airlines are
being considered as potential shareholders to replace Swissair
Group AG, AFX News in its May 31 edition said, citing Sabena
spokesman Wilfried Remans.

The speculation follows the recent announcement from Swissair
that it cannot afford to integrate Sabena, or raise its 49.5%
stake to 85% right now.

Swedish daily Dagens Industri earlier reported that SAS is
uninterested in Swissair's 49% stake in Sabena. Belgian daily De
Tijd further said American Airlines has been in talks with
Sabena.


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


DEUTSCHE TELEKOM: Liberty Media Deal Stumbles
---------------------------------------------

Liberty Media Group said it is not happy with the price that
Deutsche Telekom is asking for its cable television stations, the
May 30 edition of the Wall Street Journal reported.

Under the original deal, Liberty was prepared to pay
approximately $2 billion for Telekom's assets. Liberty president
John Malone is trying to reduce the figure.

Meanwhile, Telekom has stated that it is open to negotiations but
if the deal falls through, the company will seek other offers.


DORTMUNDER ACTIEN-BRAUEREI: Binding Brauerei to Manage Brewer
-------------------------------------------------------------

Binding Brauerei AG will in future manage its brewing company
Dortmunder Actien-Brauerei (DAB), although it will continue to
have independent shareholders, Suddeutsche Zeitung & World
Reporter on May 29 said.

Binding, which has granted a credit of DM55 million, proposed
further measures to prevent insolvency. It includes the reduction
of canned beer activities and its workforce to 454 by year 2003.

The future marketing policy for DAB will also involve the
marketing of DAB, Kronen, Thier, Stifts and Hovels brands only on
a regional basis, while prices will be increased for current low-
price brands such as Hansa.


EM.TV: Asks for Deadline Extension
----------------------------------

Media company EM.TV & Merchandising AG failed to meet the stock
exchange's May 30 deadline, therefore, has asked Deutsche Boerse
for an extension on the release of its first quarter results,
Reuters reported. EM.TV.

An EM.TV spokeswoman said she did not know when it would release
the first quarter figures.

It is the second time this year that EM.TV missed its results
deadline after the company was one month too late in publishing
its 2000 results, when it posted a surprise net loss of 2.6
billion marks ($1.14 billion).


EM.TV: Hires U.S. Bank to Find Muppets Buyer
--------------------------------------------

Media company EM.TV & Merchandising AG has hired the U.S.
investment bank Allen & Co. to advise it on the three
possibilities for its Jim Henson Co. unit, AFX News in its May 30
edition said.

According to company spokeswoman Marion Moorman, there are three
possibilities for the Muppets creator, to find it a strategic
partner, to sell part of it, or to sell the complete company.

It is thought that EM.TV would prefer to hold onto the European
marketing and merchandising rights for Jim Henson as it fits the
company's portfolio, who's now concentrating on its core
business, merchandising of children programs.

An alternative would be to find a strategic partner that could
buy the production facilities situated in the U.S. and London,
and run them as separate business.

If EM.TV decides to sell the whole unit, another possibility
would be a merchandising rights deal with the buyer.


PIXELPARK AG: Cuts Down Foreign Units
-------------------------------------

Multimedia agency Pixelpark is shrinking its foreign operations
in a drive to cut costs and reach profitability before the end of
this year, according to Reuters' May 31 edition.

Chief Executive Officer Paulus Neef said Pixelpark might end its
joint venture with Spanish bank Banco Bilbao Vizcaya Argentaria
and trim its business in the United Kingdom. Neef added his
company would close its United States office later this year and
sell its Eastern European operations in order to save hundreds of
thousands of euros.

Neef said Pixelpark would concentrate its operations on France,
Germany, Austria, Germany and Switzerland.

Pixelpark has been forced to cut about one fifth of its 1,000
workforce. In early May, it has received a 15 million euro cash
injection from media giant Bertelsmann, which owns 60.3% of
Pixelpark.


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


MALEV AIRLINES: Takes 77.5MM Euro Restructuring Loan
----------------------------------------------------

The shareholders of Malev Airlines, which posted losses of 36.2
million euro in 2000, have approved to take a restructuring loan
of 77.5 million euro, AFX News in its May 30 edition said.

President of the board Ferenc Szarvas admitted that the loan
would mean a temporary solution for the company's problems, and
that the arrangement of its capital structure by owner State
Privatization Agency APV Rt would only be able to create a long-
term future for the company.

Malev manager Erzsebet Antal said that half of the loan would be


===================
L U X E M B O U R G
===================


CLEARSTREAM: Troubles Continue in Processing House
--------------------------------------------------

With just over a month before Clearstream will know if
Luxembourg's official prosecutor has found evidence to
substantiate allegations of money laundering, few now believe the
European securities processing house can decide its own destiny
for much longer.

In a report dated May 30, Reuters said that the probe has caused
three senior officials, including president Andre Lussi, to be
suspended. It has also triggered hopes that Lussi's removal will
allow the Deutsche Boerse, half-owner of Clearstream, to buy the
half it does not own, or for a merger of Clearstream with
Belgium-based Euroclear.

Clearstream said it had received no bids from any party.

Industry veterans say the Deutsche Boerse's interest in
Clearstream may be just a strategic ploy, while others believe a
Clearstream-Euroclear merger makes sense on paper, but the yet-
to-be-estimated costs could outweigh the benefits for a long
time.


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


KPN NV: Plans on Share Issue
----------------------------

Royal KPN NV is considering options to strengthen its balance
sheet, including a potential share issue, Dow Jones Newswires in
its June 1 edition said.

The comment follows a report by the Financial Times newspaper
that KPN is planning a share issue valued between EUR5 billion
and EUR5.5 billion.

A Rabo Securities analyst said a share issue is the most likely
scenario for KPN, as it needs to find a solution to its massive
debt at EUR21 billion level.


KPN NV: To Raise at Least EUR5 Billion on Rights Issue
------------------------------------------------------

KPN is preparing a rights issue to rescue the telephone operator
from debts, the Financial Times on Friday reported. The shares
will be sold at about 50% discount, totaling between 5 billion
euro and 5.5 billion euro.

The management was hoping to consult large shareholders before
committing to the rights issue.

The Dutch government, which retains a 35% holding, is likely to
subscribe to the rights issue.


LETSBUYIT.COM: Gets $2.56MM Cash Injection From Anonymous Donor
---------------------------------------------------------------

Online retailer Letsbuyit.com has received a 3 million euro
($2.56 million) cash injection from an anonymous investor,
according to the Financial Times' May 30 edition.

The results allowed the company to draw down a further 7.4
million euro of the 52 million euro pledged by investors during
the rescue earlier in the year. The cash was dependent on company
meeting performance objectives and it has now received about 30
million euro.

Chief executive John Palmer hopes the company's recent
restructuring will bring the cash burn down to about 2 million
euro a month, compared to 10 million euro a month in the final
quarter of last year.


LETSBUYIT.COM: Narrows First-Quarter Losses to 15.2MM Euros
-----------------------------------------------------------

The net operating loss of online retailer Letsbuyit shrank to
15.2 million euros in the first quarter from 24.8 million in the
same period last year, Namnews in its May 30 edition said.

The company, undergoing a restructuring, expected its losses to
shrink further in the coming quarters. It said it has won a 3
million euro cash injection from a new investor, bringing cash
commitments to 80.8 million euros.


LETSBUYIT.COM: On Track to Beat Targets
---------------------------------------

Internet retailer Letsbuyit.com said it is on track to beat its
internal financial targets for the first six months, according to
Reuters' May 30 edition.

The initial target was to achieve a good first quarter to
guarantee a 7.4 million euro cash injection in exchange for
equity capital. The rest of the funding is also contingent on
achieving undisclosed internal targets.

Letsbuyit chief executive John Palmer said that his first-quarter
results had satisfied existing investors and even brought new
money on board.

Operating costs fell to 15.3 million euros, as Letsbuyit cut
staff, closed offices and slashed its marketing budget as part of
the rescue deal. Losses also narrowed to 15.2 million euros from
24.8 million.


NEWCONOMY NV: Posts 6.7MM Euros Loss
------------------------------------

Internet hothouse fund Newconomy, which suffered as the valuation
for the Internet companies in its portfolio dropped with the
decline in the Internet market, reported a first quarter net loss
of 6.7 million euros ($5.68 million), the May 31 edition of
Reuters said.

The loss consists of a 5.5 million loss on venture activities and
an operating loss of 0.9 million euros.

The recently appointed supervisory and management boards of
Newconomy are still analyzing the company's current portfolio. If
the situation on the capital market does not change, a
significant re-valuation of the portfolio will be necessary.


UNITED PAN-EUROPE: Fitch Withdraws UPC Rating
---------------------------------------------

Credit rating agency Fitch has withdrawn the "B" senior unsecured
issuer rating and the BB- rating assigned to cable operator
United-Pan Europe Communications NV (UPC) at the company's
request, Reuters in its May 30 edition said.

UPC announced last week it placed a one billion euro loan,
exchangeable into UPC shares at eight euros per share, with U.S.
media group Liberty Media. The deal replaces an aborted rights
issue.

According to rating agencies Moody's Investors Service and
Standard & Poor's, UPC's credit ratings would probably stay
unchanged despite the loan. Moody's rates UPC's bonds Caa1 while
S&P assigns a single-B minus rating.


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


GAZPROM: Blue Stream Credits to Increase Gazprom Debt
-----------------------------------------------------

The attraction of credits for the Blue Stream pipeline project in
2001 will increase the debt burden of gas giant Gazprom by about
$1.5 to 2 billion, RosBusiness Consulting on May 31 reported. At
present the debt of Gazprom amounts to about $12 billion.

Chief analyst Steven Dashevsky of the Aton investment group
thinks that this causes additional risks in case of a fall in
export prices.

Aton specialists believe that Gazprom shares can be attractive
for investments, but the gas company should increase capital
investments in production and settle non-payment problems.


GAZPROM: Russia Fires Gazprom Chief
-----------------------------------

The Russian government, which owns a 38% stake in Gazprom, has
fired the energy company's CEO Rem Vyakhirev on Wednesday, giving
hope to investors that reform is on the way, the Wall Street
Journal in its May 31 edition said.

Vyakhirev came under fire for everything from mismanagement to
showing favoritism to relatives by giving them lucrative
contracts.

Alexei Miller, formerly the deputy energy minister, has been
named as Vyakhirev's replacement. Investors now hope that the
management shake-up will turn the company around.


===========
S W E D E N
===========


BOLIDEN LIMITED: Faces $162MM Lawsuit
-------------------------------------

Noranda Inc and its nickel affiliate Falconbridge Ltd. filed a
$162 million lawsuit against miner Boliden Ltd., alleging it
breached a contract to sell them its Chilean assets Lomas Bayas
mine and Fortuna de Cobre, Reuters in its May 30 edition said.

The price was for about $175 million plus cash balances of $2.1
million, less outstanding third-party debt obligations of $112.7
million.

Noranda and Falconbridge assert that Boliden breached its duty to
act in good faith and execute definitive agreements consistent
with the February 28 letter agreement.

Boliden, which has said it could not reach a deal with
Falconbridge and Noranda because the Chilean properties had to be
part of its financial restructuring package, said it would defend
itself against the charges.


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


ANDRE & CIE: Creditor Protection Is Extended
--------------------------------------------

A court has granted commodities trader Andre & Cie a further six
months of protection from creditors, according to Reuters' May 30
edition.

The firm, in the process of winding up its business, was granted
an initial two months protection in March after running up around
$400  
million in bank debts.

Earlier, Andre & Cie SA sold its U.K. grain operations in a
management buyout. Two or three more operations may be sold.


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


GAMEPLAY PLC: Posts Loss of 56.1MM Pounds
-----------------------------------------

Internet games retailer Gameplay has incurred a pre-tax loss of
56.1 million pounds for the six months to January, compared with
a 10.3 million pounds loss in the first half of the previous
year, the May 31 edition of The Times said.

The figures were slightly better than analysts' estimates of a
66.4-million-pound pre-tax loss.

The Times further reported that Gameplay is now in talks with a
third party to sell its struggling business. The company is also
looking for a buyer for its boxed games division, which it has
had difficulty selling.

Another 40 job losses are expected to join the 275 staff that has
already lost their jobs.


GLOBAL TELESYSTEMS: Eyes $1.9BB Restructuring
---------------------------------------------

Fiber-optic network group Global TeleSystems Inc is discussing a
$1.9 billion (2.2 billion euro) debt restructuring for it to be
able to participate in any consolidation of pan-European network
operators, Reuters in its May 30 edition said.

With the restructuring, the company could then be attractive to
cash-rich rival Cable & Wireless in Europe or venture
capitalists.

Reuters added GTS would not tempt buyers while it was saddled
with debt. Bondholders have asked the company to restructure its
borrowings now rather than wait until it misses debt payments or
eventually go out of business.


                                **************
       
       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. Kimberly MacAdam,
Salve M. Mordeno and Ma. Cristina D. Pernites, Editors.

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

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
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same firm for the term of the initial subscription or balance
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