/raid1/www/Hosts/bankrupt/TCREUR_Public/010724.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, July 24, 2001, Vol. 2, No. 143


                            Headlines


B E L G I U M

LERNOUT & HAUSPIE: Bodson Lacks Optimism Over Company's Future
SABENA SA: Shareholders Sign 430MM-Euro Aid for Sabena


C Z E C H   R E P U B L I C

CERTUSIA POJISTOVNA: Enters Forced Administration


F R A N C E

AIR LIBERTE: Receives Buyout Offers
AIR LITTORAL: Pilots Issue Strike Warning
BATA: Works Committee, Administrator Meet Re Redundancy Plan


G E R M A N Y

BANKGESELLSCHAFT BERLIN: Will Sell Zivnostenska Stake
DAIMLERCHRYSLER AG: Cost-cutting Measures, Higher Sales Add Up
MANAGEMENT DATA: Company Profile


S P A I N

VIC TELEHOME: Applies for Suspension of Payments


S W E D E N

LM ERICSSON: Posts 14.2BB-Crown Net Loss for Second Quarter


U N I T E D   K I N G D O M

360NETWORKS: Court Extends Order to Restructure
CORUS GROUP: Warns More Jobs at Risk
EQUITABLE LIFE: May Face 200MM-Pound Bill
INDEPENDENT INSURANCE: Holders Seek PPB's Support
MARCONI PLC: Non-Executive Directors Left Uninformed
RAILTRACK GROUP: Rail Industry Warns of Threat to Bond Issue
RAILTRACK GROUP: Secretary Byers Announces Railtrack Breakup


     -  -  -  -  -  -  -  -

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


LERNOUT & HAUSPIE: Bodson Lacks Optimism Over Company's Future
--------------------------------------------------------------

Lernout & Hauspie Speech Products NV chairman Philippe Bodson is
pessimistic about the future of the group in view of its current
winding-up arrangement, the Le Soir & Financial Times reported on
Sunday.

According to Bodson, L&H has not found any investor for Newco,
the group set to take control of L&H's assets. If no investor is
found to inject funds, bankruptcy seems inevitable for the
company.


SABENA SA: Shareholders Sign 430MM-Euro Aid for Sabena
------------------------------------------------------

The two shareholders of Sabena Belgian World Airlines have agreed
to inject 430 million euros into the company, Le Temps &
Financial Times reported on Sunday. The move will provide the
Belgian carrier with more liquid capital.

Swissair, which holds 49.5% of Sabena's stake, will contribute
60% of the funds, or 258 million euros, while the remainder will
be provided by the Belgian state, which owns 50.5% of the
company.

The shareholders already invested some 250 million euros in
Sabena in January.



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


CERTUSIA POJISTOVNA: Enters Forced Administration
-------------------------------------------------

The Finance Ministry placed Certusia Pojistovna under forced
administration on July 19, due to the insurer's poor financial
results, the Czech A.M. reported on Friday.

According to the Czech Association of Insurance Companies,
Certusia reported a loss of Kc35.3 million in 1999.



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


AIR LIBERTE: Receives Buyout Offers
-----------------------------------

AOM-Air Liberte has received two serious buyout offers for the
ailing airlines' activities, the AFX News' reported Friday,
citing French transport minister Jean-Claude Gayssot.

The names of the interested parties were not disclosed.

The struggling airlines were forced to file for bankruptcy after
shareholders Swissair Group and Marine-Wendel SA refused to bail
out the air carriers.


AIR LITTORAL: Pilots Issue Strike Warning
-----------------------------------------

French pilots union SNPL has issued a three-day strike warning
for Air Littoral pilots. The strike will start Friday.

The union, according to the Liberation & Financial Times' Sunday
report, is calling on the airline's owner, Swissair Group, to
investigate the acquisition offers.

Unions are contesting the conditions of Marc Dufour's plan to cut
between 280 and 300 jobs from a total workforce of 1,200. Former
CEO Dufour was selected as buyer for the airline on June 30.


BATA: Works Committee, Administrator Meet Re Redundancy Plan
------------------------------------------------------------

The works committee met with Bata-Hellocourt administrator Pierre
Bayle and its managers on Thursday to assure that there would be
no redundancies made over the summer holiday at the shoe
manufacturer's plant, the La Tribune & World Reporter said in its
July 20 edition.

The Metz commercial court in France has placed the group in
involuntary liquidation for six months.

In June, Canadian parent, Bata, confirmed it would not inject the
20 million French francs necessary to keep its shoe factory
afloat.



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


BANKGESELLSCHAFT BERLIN: Will Sell Zivnostenska Stake
-----------------------------------------------------

Bankgesellschaft Berlin AG will sell its majority stake in
Zivnostenska Banka by fall, according to yesterday's Dow Jones
Newswires.

There are already a number of foreign banks interested in the
stake, including Italy's Unicredito Italiano SpA.

Bankgesellschaft owns 85% of Zivnostenska, which, in terms of
assets, is one of the country's medium-sized retail and corporate
banks.


DAIMLERCHRYSLER AG: Cost-cutting Measures, Higher Sales Add Up
--------------------------------------------------------------

DaimlerChrysler said on Friday the cost-cutting measures and the
rise in sales over the first quarter in its U.S. unit have paid
off. The Chrysler Group's operating loss of 0.1 billion euros was
significantly better, compared with a 1.4 billion euros loss in
the first quarter.

The carmaker's revenues of 18.2 billion euros were 1% higher than
the year before.


MANAGEMENT DATA: Company Profile
--------------------------------

Name:        MANAGEMENT DATA MEDIA SYSTEMS AG
             Gertigstraáe 28
             22303 Hamburg,
             Germany

Phone        +49 (0) 40/278 14-0

Website:     www.mdata.de

SIC:               Computer and software store (5734)
Employees:         270 (2000)
Revenues:          33,437,000 DM (2000)
Net Loss:          12,068,000 DM (Dec. 31, 2001)
Current Assets:    50,455,000 DM (Dec. 31, 2000)
Total Liabilities: 71,254,000 (2000)

Type of Business: Develops specialized software for radio
stations (Computer Aided Radio Software - CAR). Also sells
hardware and provides maintenance services.

Trigger Event: Recurring losses have caused the company to seek
financial aid from investors. A 5-million-euro injection by U.S.
investor Global Emerging Markets was not even enough to save the
company, which led to the filing of an appeal for insolvency on
July 17.

CEO & President:            Holger Antz
Supervisory Board Chairman: Peter Biener
Board Member for Finance:   Klaus-Peter Barth
Board Member for New Media: Sebastian-Justus Schmidt:
Board Member for TV:        Brian Paisley

Auditors:  Haarman, Hemmelrath & Partner GmbH

Total Shares Outstanding:  7,500,000

Last company information published in TCR-EUR July 20, 2001



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S P A I N
=========


VIC TELEHOME: Applies for Suspension of Payments
------------------------------------------------

Telephone booth operator Vic Telehome has applied for payment
suspension after accumulating a debt of Pta4.2 billion with
telecommunications group Telefonica, the July 16 edition of El
Mundo & World Reporter said.

Vic Telehome's activity consists of acquiring minutes of excess
capacity from poor quality circuits belonging to Telefonica and
reselling them through its phone booths at lower rates than those
charged by operators Telefonica, Retevision, Uni2 and Jazztel.

The company made a turnover of Pta4 billion last year.



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


LM ERICSSON: Posts 14.2BB-Crown Net Loss for Second Quarter
-----------------------------------------------------------

Wireless network supplier Ericsson swung to a heavy second-
quarter pretax loss of 5.3 billion crowns and a net loss of 14.2
billion Swedish crowns in the three months to June 30, CNN
reported Friday.

According to Chief Executive Kurt Hellstrom, many of their
customers have delayed spending on network expansion and in some
cases postponed contracted deliveries in the second quarter. The
company's overall sales also fell 3% to 62.8 billion crowns,
while orders slipped 5% to 61.2 billion crowns.

The company has cut 10,000 jobs and 5,800 consultant positions
during the quarter. Another 10,000 jobs will go in the second
half.

Ericsson posted a first-quarter pretax loss of 4.9 billion crowns
in April.



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


360NETWORKS: Court Extends Order to Restructure
-----------------------------------------------

Optical network services provider 360networks said Friday that
the Supreme Court of British Columbia in Canada has extended the
order providing the company protection under the Companies'
Creditors Arrangement Act (CCAA) to December 31, 2001.

The approval provides the company time to restructure their
business plan in North America and sell key assets outside the
United States and Canada.

The court order includes a cash budget through 2001. At this
time, 360networks does not anticipate needing debtor-in-
possession financing.

In June, the company and 22 of its subsidiaries filed for
protection under Chapter 11 of the U.S. Bankruptcy Code in New
York. The company has also instituted insolvency proceedings in
Europe.


CORUS GROUP: Warns More Jobs at Risk
------------------------------------

Corus has warned that five of the UK's steel plants and up to
18,000 jobs are threatened by trade proposals drawn up by the US,
according to the Independent on Sunday.

Britain's largest steel producer cautioned that if the trade
restrictions from the US International Trade Commission are
imposed, steel plants at Rotherham, Stocksbridge, Teeside,
Scunthorpe and Ijmuiden will be affected. These plants employ
18,340 people.

The steel giant is attempting to keep its head above water as
steel prices hit their lowest level in nearly 10 years. Corus has
already fired 6,000 workers this year due to an excess of
capacity.


EQUITABLE LIFE: May Face 200MM-Pound Bill
-----------------------------------------

In addition to Equitable Life's existing heavy liabilities, the
troubled life assurer may face a bill of up to 200 million pounds
over income-drawdown policies, the Press Association reported
yesterday.

The 240-year-old firm may have to compensate customers who bought
income-drawdown policies sold as an alternative to an annuity at
retirement.

There were concerns that around 15,000 customers of these
policies were sold when other products could have been more
appropriate.


INDEPENDENT INSURANCE: Holders Seek PPB's Support
-------------------------------------------------

Irish policyholders of Independent Insurance are calling for
support from the UK's insurance compensation body. It has become
evident the insurer's collapse has left policyholders with 1,100
unpaid claims adding up to more than 40 million euros, the Sunday
edition of the Financial Times said.

The Irish Brokers Association has asked the Policyholders
Protection Board (PPB) whether it will extend its compensation
payments to eligible policyholders in Ireland and in the UK. The
PPB will decide this week whether it will have to pay out to
Irish policyholders.

The Irish government's Department of Enterprise, Trade and
Employment has been in talks with the UK's Financial Services
Authority to clarify the situation.


MARCONI PLC: Non-Executive Directors Left Uninformed
-----------------------------------------------------

According to the Financial Times' report Sunday, the non-
executive directors of telecommunications group Marconi were only
told of the group's decision to suspend trading on July 4 after
the decision was announced to the market.

It is understood that some non-executive directors were not
informed until almost twelve hours after the decision to suspend
trading was taken, and by chief executive Lord Simpson, or
chairman Sir Roger Hurn.

The group said the suspension was necessary to prevent the
creation of a false market in the time period between the
announcement of a successful disposal and the release of a dire
profits warning.

One of the non-executive directors is London Stock Exchange
director Nigel Stapleton. Others include HSBC Holding deputy
chairman Baroness Dunn, Nycomed Amersham chief executive Sir
William Castell, Cadbury Schweppes chairman Derek Bonham, and
former deputy chief executive of British Telecommunications Sir
Alan Rudge.

Marconi was unavailable for comment.


RAILTRACK GROUP: Rail Industry Warns of Threat to Bond Issue
------------------------------------------------------------

Strategic Rail Authority chairman Sir Alastair Morton has warned
UK's network operator Railtrack that its plans for a bond issue
of 2 billion to 3 billion pounds could be threatened because of
continuing uncertainty over the company's finances and management
problems, the Financial Times reported Sunday.

Before the sale, investors need to know about the plans of the
government, the Strategic Rail Authority, the Rail Regulator, and
Railtrack's management, one bond analyst said.

Credit Suisse First Boston is advising the company on this issue.

Railtrack suffered the fatal Hatfield crash, ensuing service
chaos, and big project cost increases. It had a 1.5-billion-pound
subsidy advance from government to prevent a potential cash
crisis. In May, it announced the bond sale and another 2-billion-
pound public appeal to fund the growing hole in its finances.


RAILTRACK GROUP: Secretary Byers Announces Railtrack Breakup
------------------------------------------------------------

Transport secretary Stephen Byers will break Railtrack into
regional groups within the next few weeks to help the company
through its tough financial situation, according to a Sunday
Times' report.

While Railtrack will retain overall control of the network, the
group will establish regional boards and split the country into
eight areas. Each of the regional boards will have
representatives from the train operating companies (Tocs).

The move will also allow the Tocs and contractors to upgrade the
network.






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,
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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Information contained herein is obtained from sources believed to
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The TCR Europe subscription rate is $575 per half-year, delivered
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