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       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, June 6, 2000, Vol. 1, No. 21


                       Headlines

C Z E C H    R E P U B L I C

VITKOVICE: Government to Bail Out Debt-Ridden Steelworks


F R A N C E

EUROTUNNEL: Channel Tunnel Operator in Court Again


G E R M A N Y

DEUTSCHE BAHN: Faces Break-up if Overhaul Fails
SAP AG: Plans Radical Overhaul After Losses of ?111 million


G R E E C E

OLYMPIC AIRWAYS: Privatisation of Carrier Suffers a Setback


N E T H E R L A N D S

BAAN: Falls as Speculation of Better Bid Fades


R O M A N I A

FONDUL NATIONAL: Government Takes Steps to Solve Unit Fund Crisis


U N I T E D    K I N G D O M

BILLAM:  Investors Unforgiving, Stock Plunges to Just a Penny
BOO.COM: Burnt through $160 Million
BRADSTOCK: To Sell Broking Arm Under Administrative Receivership
BRAITHWAITES (HERTFORDSHIRE): Notice of Creditors' Meeting
CARE ASSURED: Notice of Creditors' Meeting

CROPMARKS LTD: Notice of Liquidation Proceedings
DELANCY ESTATES: May Quit Market
FEDERALPACK LTD: Notice of Liquidation Proceedings
FOCALFLAIR LTD: Notice of Liquidation Proceedings
GRESHAM COMPUTING: Company is Trouble Again

LAIDLAW & FAIRGRIEVE: Loss-Making Company Closes
MAIR & SINCLAIR: Notice of Creditors' Meeting
PRESTBURY GROUP: Cashback Plan as Chiefs Give Up Struggle
ROSE & GERRISH: Notice of Liquidation Proceedings
SEYMOUR BUILDING: Notice of Liquidation Proceedings

SHERWOOD LTD: Notice of Liquidation Proceedings
SOROS FUND: Heavy Losses Force Third Top Executive to Resign
STITCH & TRIM: Notice of Liquidation Proceedings
THORNTONS: Issues Further Profit Warning on Lower Sales
UNITED INDUSTRIES: Troubled Group Sell All Engineering Businesses
UNIVERSAL WINDOWS: Notice of Creditors' Meeting


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

VITKOVICE: Government to Bail Out Debt-Ridden Steelworks
--------------------------------------------------------
The Praque Post   June 2, 2000

The Czech Cabinet has pledged the largest-ever state bailout
package to the debt-ridden Vitkovice steelworks.

On the verge of total economic collapse, the state-controlled
steelworks will receive a record 8.5 billion Kc ($212.5 million)
bailout package and will be split to avoid bankruptcy.

The 67 percent state-owned steelworks is 11 billion Kc in debt.
The company lost 8.5 billion Kc last year, after facing recession
in the sector and competition from East European producers.

The government plan calls for the partial buyout of the
receivables, an 8.9 billion Kc basic capital reduction by
slashing the face value of shares to 130 Kc from 1,000 Kc, and
debt-for-equity swaps.

Having received its third bailout in only eight months, the north
Moravian steelworks has become the biggest money loser in the
state restructuring program.

"The need for restructuring Vitkovice steelworks was urgent,
because of social, economic, ecological and other impacts, which
would follow the possible liquidation of the company," Minister
of Industry and Trade Miroslav Gregr said.

With unemployment in the city of Ostrava already more than 16
percent and every Vitkovice job producing two more in the service
and support industries, the steelworks -- which now employs about
11,000 people -- is an economic pillar of the Ostrava region.

Gregr said the possible collapse of the steel mill would result
in about 26,000 people losing their jobs overall. Because of
that, it is essential to split the company in order to get rid of
crushing debt and avoid the total collapse of the troubled
steelworks, he said.

Vitkovice plans to downsize to no more than 7,000 employees.
About 1,800 workers will be laid off by the end of this year, and
another 2,600 people will change employers when parts of
Vitkovice are sold off.

Despite the plan to lay off thousands of employees, Veromir
Merta, a member of Vitkovice's trade union, said he supported the
restructuring program, prepared by the consulting firm Deloitte &
Touche and Vitkovice management.

"We've been balancing on the verge of mere survival, and this is
the last chance for Vitkovice," Merta said.

More than 10 years after the fall of communism, Vitkovice remains
in state hands. Privatization plans were replaced by seemingly
endless loans from state-owned banks.

The pattern of state-owned banks generously flooding state-owned
companies with capital was established. As a result, many Czech
industrial giants were not pushed to efficiency and most have
experienced serious economic woes.

The Cabinet decided to introduce a restructuring program in 1998.
Originally, Gregr intended to involve about 35 key companies in
the restructuring program, with overall state support amounting
to 60 billion Kc.

However, critical situations in a vast majority of companies, and
the consequent threat of excessive state expenditures, caused the
Ministry of Industry and Trade to report in 1999 that only about
10 companies would be eligible for the restructuring program.

And since establishing the Revitalization Agency as the governing
body of the restructuring program six months ago, the
restructuring program has supported only five companies --
Vitkovice, engineering giant Skoda Plzen, tractor manufacturer
Zetor, truck manufacturer Tatra and chemical giant AliaChem. The
overall state financial support through the Revitalization Agency
has been 16.4 billion Kc, out of which Vitkovice drew 11.8 Kc --
72 percent.

David Kostruh, a member of the Vitkovice board, said the state
support is essential in order to salvage the steelworks.

"We aren't saying 'give another billion to this pile of muck,' "
Kostruh said. "[management] can do lots of things on its own,
such as cutting costs, searching for new markets, negotiating
prices. ... But there are things the management can do nothing
about."

Gregr said the recent bailout was the last help Vitkovice would
receive from the state.

"The company should have new owners within three years," he said.




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

EUROTUNNEL: Channel Tunnel Operator in Court Again
--------------------------------------------------
The Independent  3 June 2000

The airports group, BAA, yesterday launched a High Court action
against Eurotunnel, seeking damages and the cancellation of its
15-year contract to run retail facilities at the Channel Tunnel
operator's Folkestone and Calais terminals.

The action follows a dispute between the two companies over the
number of passengers using Eurotunnel's shuttle service. BAA is
understood to be demanding around ?10m in compensation, claiming
that passenger numbers are at least 20 per cent below the levels
stipulated in its contract with the cross-Channel operator.

BAA took on the contract to operate the duty-free shops and
manage the other retail outlets at the two terminals last July.
At the time it forecast sales of ?100m a year, despite the end of
intra-EU duty-free sales.

Under the agreement, BAA received an annual fee for operating the
facilities and a share of the revenues, while Eurotunnel also
received a share of the profits. However, lower-than-expected
passenger numbers have meant that BAA has lost ?10m to date,
including its start-up costs, and is likely to incur further
losses this year.

The High Court action seeks "rescission" of the contract - a
legal term meaning that the contract should be treated as if it
had never been entered into and both parties returned to the
position they were in before the agreement was signed.

Alternatively, BAA wants damages for misrepresentation and breach
of warranty.

Eurotunnel is already facing a French judicial investigation over
claims that its 1994 share prospectus contained false
information. Several top executives, including the current
chairman Patrick Ponsolle and the former chairman, Sir Alastair
Morton, have been placed under formal inquiry.

The latest legal move is a severe blow to Eurotunnel which had
hoped that BAA's expertise in operating retail outlets would
bring in extra revenues, helping offset the loss of duty-free
sales.

The two companies had plans for an expansion of the two terminals
to include shops selling fashion items, compact discs and cameras
and an outlet at Calais specialising in fine wines and
connoisseur cognacs.

Eurotunnel strongly rejected the allegations made by BAA and said
it would defend the legal action vigorously, launching a counter
claim for damages. A spokesman said the contract could only be
renegotiated if passenger levels were 25 per cent below forecast
and this was not the case.

Bill Dix, manging director of its shuttle services, said that in
the first nine months of the contract, Eurotunnel's share of the
cross-Channel car market had increased to 54 per cent while
turnover in the first quarter of the current year was in line
with objectives.


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

DEUTSCHE BAHN: Faces Break-up if Overhaul Fails
-----------------------------------------------
FRANKFURT, June 2 (Reuters) - Germany's state-owned railways
company could be broken up and sold if it fails to pull off an
ambitious restructuring programme in the run up to planned
privatisation by 2004, a German newspaper reported on Friday.

Deutsche Bahn AG, Germany's largest employer with around 250,000
workers, faces the risk of being split up into regional units to
be sold to the private sector if it does not reduce its reliance
on state support, the Sueddeutsche Zeitung reported.

The group is aiming to reduce its workforce by 36,500 by 2004 to
cut costs, the paper said, citing an internal Deutsche Bahn
document. Last year Deutsche Bahn, which receives massive state
transfers, posted an operating loss of 170 million marks ($81.38
million).

Deutsche Bahn managers are scheduled to meet union
representatives on Wednesday next week in an effort to reach
agreement on a restructuring plan, including wage cuts, according
to the newspaper.

"If this restructuring drags on or fails there is a high risk
that the state owner will dissolve the national rail company,"
the Sueddeutsche Zeitung said, citing the Deutsche Bahn document.
Deutsche Bahn, which was set up as a limited-liability company in
1994, wants to cut nearly four billion marks in staff costs by
2004.

The Sueddeutsche Zeitung said that Deutsche Bahn did not expect
the state to continue pumping money into the company. "The
coffers are empty and the state will not save us," the internal
document cited by the paper said.

Union officials said threats were unhelpful in negotiations,
according to the paper. Failure to strike a deal could spark a
major rail strike, the Munich broadsheet added.

Deutsche Bahn could not be reached for immediate comment on the
report.

In March the company blamed larger write-offs and investment cost
for last year's loss but said that continuing restructuring
measures would produce a turnaround in 2000.


SAP AG: Plans Radical Overhaul After Losses of ?111 million
-----------------------------------------------------------
Financial Times   June 2, 2000

A leaked document this week revealed that the German software
group was planning a radical overhaul of its structures,
following operating losses of ?111m and an a fall in SAP's share
price from a high of E1,050 to E585.

The measures, detailed in a strategy paper obtained by Financial
Times Deutschland, were confirmed "in principle" by SAP. The
management board is due to vote on the reorganisation at the
beginning of August.

The software development division will be split in three to focus
on new products, improving and providing services for existing
companies and support and system errors. All of the changes will
be overseen by a seven person "change team."

But just two years ago the group, run by the 56-year-old sailing
fan, looked as if it might have the right stuff to rival
Microsoft in terms of its speed of growth.

In 1998 the group had sales of ?2bn, 17,000 employees and
research laboratories in the US, Tokyo, Moscow and India and was
one of the fourth largest software companies in the world.

Nestled in the sleepy town of Walldorf, near Heidelberg, Europe's
best-kept technology secret was created in 1972 when Mr Plattner
along with four of his colleagues left IBM with a very special
product idea and a burning desire to start their own company.

The concept that SAP's success was built around was the
production of software that would run a company's entire business
process. Instead of having separate software for tracking
inventories, calculating profits or paying staff, SAP decided it
would not only be simpler but cheaper to have one single piece of
software that could do it all.

The system, known as enterprise resource planning, skyrocketed
and can now be found in most of the world's biggest corporations.
In 1979 he assumed overall responsibility for technology. Under
his lead SAP's best-selling R/3 system - an upgrade of their
original client/server software - was developed. When the company
went public in 1988 Mr Plattner was nominated to the position of
vice chairman of the board of directors.

Although now a multi-national company, Mr Plattner and his co-
founders have tried to keep the spirit of informality and
creativity that the company started with. There is no dress code,
nobody has fixed working hours and good programmers get paid as
much as top line managers.

Very much an American-phile, the burly, perma-tanned executive
now spends much of his time in Palto Alto, California, where SAP
has its US headquarters. It also acts as an ideal location for Mr
Plattner to indulge in his passion for off-shore racing.

Following this week's revelations Mr Plattner may well be forced
to call on his sailing experience to sail his company through the
stormy seas ahead.


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

OLYMPIC AIRWAYS: Privatisation of Carrier Suffers a Setback
-----------------------------------------------------------
Financial Times  June 2, 2000

Greece's privatisation programme suffered a setback on Friday
when British Airways told the government it would not take up an
option to acquire 20 per cent of Olympic Airways, the loss-making
state carrier.

Yannos Papantoniou, finance minister, said after a meeting with
Roger Maynard, the British flag carrier's director of alliances,
that an international tender would be held to find a strategic
investor for the airline.

BA said Olympic's contract with Speedwing, its management
consultancy subsidiary, would be terminated. Speedwing took over
management of Olympic last July with a commitment to make the
airline profitable within 30 months and prepare it for membership
of an international airline alliance.

But the management team clashed with the board of directors and
Olympic's powerful trade unions. The airline is projected to lose
almost $60m this year but is no longer eligible for state
subsidies under EU regulations. It was not expected to become
profitable until 2002, according to Speedwing's business plan.

A government official said a Greek management team would take
over day-to-day operation of the airline while the tender
procedures were underway. A financial adviser would be appointed
later this month.

He said a strategic investor would be offered a stake of at least
20 per cent and would take over management, with an option of
increasing its shareholding to 49 per cent at a later date.

Olympic is valued at about $300m, including Olympic Aviation, its
subsidiary for Greek island routes, and Olympic Catering, the in-
flight catering operation which was floated on the Athens stock
exchange last year.

An Athens-based analyst said a major international carrier was
unlikely to be interested in acquiring an equity stake in
Olympic, given its record of heavy losses and prolonged labour
disputes.

"The most likely prospect would be a consortium of Greek and
international investors, not necessarily from the airline
industry, with good access to financing," he said.


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

BAAN: Falls as Speculation of Better Bid Fades
----------------------------------------------
AMSTERDAM, June 2 (Reuters) - Shares in business software firm
Baan slid early on Friday, following falls in its U.S.-listed
shares, as speculation faded of a better takeover bid than that
from Britain's Invensys, dealers said.

Shares in Baan fell to 2.77 euros by 0741 GMT, down 6.7 percent,
retreating after gaining 13.4 percent when markets were last open
on Wednesday.

Baan closed slightly lower on Wall Street on Thursday.
Invensys on Wednesday announced a $714 million agreed bid for
Baan, offering 2.85 euros per share. "Baan shareholders think:
Take it or leave it," said Rene Lokenberg, trader at Van der Hoop
Effectenbank, referring to the 2.85 euros offer price.

"Investors might be of the opinion that this is Baan's last
chance to be acquired," he added.

The fact that shares have fallen below the offer price, which was
regarded as a safe bottom price on Wednesday, could be because a
number of sell orders have been called, traders said.

"It's still early in the morning and we have to wait to see how
shares will trade during the day. I expect the price to stabilise
around 2.85 euros," said analyst Raoul Sprangers at F. Van
Lanschot Bankiers.


=============
R O M A N I A
=============

FONDUL NATIONAL: Government Takes Steps to Solve Unit Fund Crisis
-----------------------------------------------------------------
BUCHAREST, Jun 2, 2000 (Reuters) -- Romania's government on
Thursday decided to freeze the troubled Fondul National de
Investitii (FNI) unit trust and amend legislation with help from
the World Bank to better monitor unit trusts.

In a statement issued after its weekly meeting, the cabinet said
it had ordered an investigation to evaluate FNI assets and its
losses and identify those responsible for the crisis.

Last week, FNI ceased payments following large withdrawals by
investors who feared possible changes in the method of computing
the fund's net assets.

The move triggered nationwide protests, with thousands of people
demanding immediate redemption of their money.

Police and prosecutors launched penal investigations into the
case. Arrest warrants were issued for four senior FNI executives
and the head of the CNVM capital market regulator in charge of
monitoring FNI.

Initial reports suggested FNI losses amounted to some one
trillion lei.

The FNI crisis came shortly after sensitive talks between
Bucharest and the International Monetary Fund on the extension of
a $540 million standby loan.

On Wednesday, the IMF said it had extended the standby until June
7, giving the government time to resolve the problem.

The cabinet statement said steps plans include a probe into the
activity of CNVM and hearings of FNI auditors. Investigations
into the CEC state bank, a shareholder in FNI's administrator SOV
Invest, were also part of the package.

It said the CNVM board had been replaced with an interim team
pending investigations.

"The government will solve, with help from the World Bank, the
structural weaknesses in the regulatory and monitoring system of
the non-banking financial institutions, in order to avoid similar
problems," the statement said.

Within the next three months the government was expected to issue
a study on the units' financial situation and their impact on the
banking system. The study might reveal possible over-valuation of
net assets, it said.

Other measures included a clarification of the CNVM's
responsibilities, introduction of a new monitoring system for
credit cooperatives and assessment of the legal status of
investment funds acting on the local foreign exchange market.

Other main targets of the programme included better surveillance
of banks' exposure in the non-banking financial sector as well as
financial, management and operational audits of CEC, the cabinet
statement said.


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

BILLAM:  Investors Unforgiving, Stock Plunges to Just a Penny
-------------------------------------------------------------
Financial Times    June 2, 2000

Investors were in an unforgiving mood as Billam, the Sheffield
engineering company that went into administrative receivership
last year, returned to the market yesterday.

The market value of the company, whose shares were suspended at
37p last October, was all but wiped out after the stock plunged
36 or more than 97 per cent to just a penny.  

The decline came a week after Billam unveiled plans to transform
itself into a pan-European venture capital backer for high
technology businesses.

Distributor Ring advanced after it agreed to a bid from Catalina
International. The offer values each Ring share at 50p and the
shares closed 13 1/2 ahead at 48 1/2p.

However, the best performer in the market was tightly-traded CA
Sperati, the household goods and textiles company. The shares
gained 415 to 970p.


BOO.COM: Burnt through $160 Million
-----------------------------------
LONDON, June 2 (Reuters) - The liquidator of collapsed Internet
retailer boo.com said on Friday that Europe's biggest dot-com
casualty was no isolated case and that other failures could
beckon.

Accountancy firm KPMG, which wound up the young firm this week
with the sale of its brand name and back-office technology, said
boo.com's liquidation was at times like trying to sell fresh air.
"I don't think this is an isolated case," said KPMG corporate
recovery partner Mick McLoughlin, who handled the fire-sale of
boo.com's pitifully few assets.

"There was an awful lot of people who got caught up in the
excitement of being pioneers. And the thing that you have to
remember about pioneers is that lots of them got shot."

Boo.com, set up just over six months ago as an upmarket
sportswear retailer by two Swedish entrepreneurs with a
successful e-commerce track record, was shot down in flames.

Launched with the usual dot-com fanfare, it won generous backing
from high-profile investors including Bernard Arnault, chairman
of luxury goods group LVMH, and Italy's Benetton family and
investment banks Goldman Sachs and J.P. Morgan.

What it didn't have was a viable business plan.

Boo.com burnt through around $160 million, including about $30
million in borrowed money, during its short life and, apart from
a little cash in the bank, had nothing tangible to show for it
when investors finally pulled the plug.

Its software was mostly licensed and its office computers leased,
leaving some fancy Web technology and a brand as the only assets
worth selling. They were sold separately this week but
shareholders are very unlikely to see any of the proceeds.

British IT firm Bright Station bought the Web technology for a
song - 250,000 pounds - and U.S. fashion portal fashionmall.com
picked up the brand name for a larger sum. But it is a pittance
compared with the money invested.

Like a lot of dot-coms, boo.com's demise shows there is a very
fine line between Internet heaven, filled with cheap capital and
adoring investors, and old-fashioned financial hell.

Unlike traditional business collapses, KPMG's McLoughlin said, a
dot-com - especially one trying to build a brand name from
scratch - can collapse in the click of a mouse. Once the promise
of future profits evaporates, there is nothing left.

"There was no cash, nothing to pay the wages with, nothing to pay
the suppliers, nothing to pay the software licences. And it's not
actually generating cash from operations," he said of boo.com's
sudden collision with reality.

There was no time to sell the business as a going concern. On the
Internet, boo.com's groovy cyber store assistant, Miss Boo, was
showing customers around a 3D show room. In boo.com's swank
Carnaby Street offices, angry staff were being laid off.

McLoughlin said the lesson of boo.com is the same for any
business, though the huge sums of cash involved in building a Net
brand and Web technology makes it a very perilous one to ignore
in the dot-com world.


BRADSTOCK: To Sell Broking Arm Under Administrative Receivership
----------------------------------------------------------------
Financial Times    June 2, 2000

Bradstock, the insurance and reinsurance broker, is to sell its
insurance broking business in order to address a deficit in its
pension scheme. The group, which last year terminated talks with
several potential buyers, has already had to distance itself from
the problems of its financial services subsidiary.  The
subsidiary, which was forced to make provisions of Pounds 8m to
cover pensions mis-selling, is still in administrative
receivership.

Yesterday Alan Williams, chairman, said he was confident that the
sale of the insurance broking business, which accounts for two-
thirds of revenues, would generate more than enough to satisfy
the group's liabilities and to invest in the remaining
reinsurance business.

The group reported a fall in pre-tax profits from Pounds 2.9m to
Pounds 331,000 on revenues down from Pounds 18.8m to Pounds 15.7m
in the six months to March 31. Earnings per share fell from 3.2p
to 0.3p and there is no dividend. The shares, which tumbled from
a 12-month high of 65p once talks to sell the whole group were
terminated, were unchanged at 19p. David Blackwell


BRAITHWAITES (HERTFORDSHIRE): Notice of Creditors' Meeting
----------------------------------------------------------
Insolvency UK

Company Name: Braithwaites (Hertfordshire) Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 03.00 pm
Meeting date: 07/06/00
Meeting address: Lynton House 7-12 Tavistock Square
Meeting City Code: London WC1H 9LT
Authorised by: S Webb Director 18/05/00
Last day for proxy: 06/06/00
Proxy address: 81 Station Road Marlow SL7 1NS
Liquidators: Frank Wessely
Firm Name: Morley & Scott
Address: 81 Station Road Marlow SL7 1NS


CARE ASSURED: Notice of Creditors' Meeting
-------------------------------------------
Insolvency UK

Company Name: Care Assured Agency Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 11.00 am
Meeting date: 07/06/00
Meeting address: Coventry City Football Club Highfield Road
Meeting City Code: Coventry
Authorised by: S M Lewis Director 19/05/00
Last day for proxy: 06/06/00
Proxy address: Lancaster House 67 Newhall Street Birmingham B3
1NG
Liquidators:
Firm Name: Mazars Neville Russell
Address: Lancaster House 67 Newhall Street Birmingham B3 1NG


CROPMARKS LTD: Notice of Liquidation Proceedings
------------------------------------------
Insolvency UK

Company Name: Cropmarks Ltd
Company No: 3177380
Com. Business: Paper/Printing/Publishing
Appointed on: 18/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Stephen M Katz IPno: 8681
Firm Name: Fisher Curtis
Address: 1 Great Cumberland Place
City Postcode: London W1H 8LE


DELANCY ESTATES: May Quit Market
-------------------------------------------
LONDON, June 4 (Reuters) - Delancey Estates Plc , the British
property group backed by financier George Soros, is considering
taking itself private because of the poor stock market valuation
of the sector, the Observer newspaper reported on Sunday.

The company is currently trading at a discount to net asset value
of nearly 30 percent, which has prompted Chief Executive Jamie
Ritblat to consider leaving the stock market, the paper said.

Two other British property groups announced last week they would
be leaving the stock market because of the sector's lowly
ratings.

"The market's view on the sector doesn't seem to be willing to
change. We're not going to rush into anything -- but we are
keeping our options open," the paper quoted Ritblat as saying.

Delancey's shares closed at 90-1/2 pence on Friday, giving it a
market capitalisation of 233 million pounds.


FEDERALPACK LTD: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Federalpack Ltd
Company No: 3685939
Com. Business: Provide Packaging Services
Appointed on: 18/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Richard A Segal IPno: 2685
Firm Name: A Segal & Co
Address: Albert Chambers 221-223 Chingford Mount Road
City Postcode: London E4 8LP


FOCALFLAIR LTD: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Focalflair Ltd
Company No: 3060859
Com. Business: Furniture Retailers
Appointed on: 18/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Andrew J Nichols IPno: 8367
Firm Name: Redman Nichols
Address: Maclaren House Skerne Road
City Postcode: Driffield YO25 6PN


GRESHAM COMPUTING: Company is Trouble Again
-------------------------------------------
Citywire  June 2, 2000

History repeats itself as Gresham issues another profits warning
Poor old Gresham Computing is in trouble again, and one of the
first tasks of its third chief executive in as many years has
been to issue yet another profits warning.

In a trading statement issued today, new chief executive Andrew
Walton-Green said the difficult trading conditions Gresham
experienced in the second half of last year had continued into
the first part of this year.

This, and costs associated with restructuring the company, will
mean losses for the six months to 30 April will be `slightly
greater than those of the previous six months'.

Gresham's shares, which have already fallen to about their all-
time low, were unchanged this morning at 28.5p.

Back in 1997, the company's chairman, managing director and sales
director all left the company, and share prices slumped to 36p. A
new management team was brought in, including managing director
Trevor Read, which had big ambitions to expand Gresham
internationally, and in the US in particular.

By June 1998, the company was launching Gresham Computing Inc in
Austin, Texas, focusing on electronic business, and the shares
had hit 122p.

Unfortunately, Read's growth plans, which included making a
number of acquisitions in rapid succession, as well as trying to
break into the notoriously difficult US market, were over
ambitious.

By the end of 1999, history had begun repeating itself, and in
December, Read resigned as chief executive, to be replaced by
Bill Simpson.

Simpson proceeded to carry out a complete review of the
struggling business, and submitted his restructuring plans to the
board earlier this year.

Those proposals were not well received by Simpson's fellow
directors, and in April, chairman Roger Graham, two non-executive
directors, Gresham's financial advisers and stock-brokers all
resigned.

Walton-Green has now replaced Graham, but he certainly does not
have an enviable task, trying to break the cycle of profits
warnings and top-level management resignations.


LAIDLAW & FAIRGRIEVE: Loss-Making Company Closes
-------------------------------------------
Financial Times     June 3, 2000

Scotland's last large-scale wool yarn spinning business, Laidlaw
& Fairgrieve, is to close after 140 years.

The closure of the loss-making company, which has been for sale
since 1998, comes as a further blow to Scotland's dwindling
textiles industry and will result in the loss of 290 jobs at
sites in Selkirk and Dalkeith. The plants will shut this month.

Laidlaw & Fairgrieve's owner, Dawson International, the cashmere
company that has undergone an extensive restructuring, said it
could no longer sustain its subsidiary's losses, which last year
topped Pounds 2m.

"It's a very sad day," said Peter Forrest, deputy chairman. "But
we've had three years of losses and even with a superb management
team it just wasn't viable."

Paul Munn, Dawson's chief executive, said the wool yarn business
had been squeezed by lower-cost east Asian competition, with
pressure compounded by sterling's strength.

The Scottish textile industry has suffered a string of job losses
in recent months as the effects of overseas competition and
decisions by customers, especially Marks and Spencer, to source
more clothing overseas.

Over the past 18 months Dawson has sold most of its "non-core"
businesses, including Pringle.  


MAIR & SINCLAIR: Notice of Creditors' Meeting
-------------------------------------------
Insolvency UK

Company Name: Mair & Sinclair Ltd
IA 1986 Section: 138 Creditors
Meeting Time: 02.00 pm
Meeting date: 07/06/00
Meeting address: 1/4 Atholl Crescent
Meeting City Code: Edinburgh EH3 8LQ
Authorised by: M P Henderson Interim
Liquidator 22/05/00
Last day for proxy: 06/06/00
Proxy address: 1/4 Atholl Crescent Edinburgh EH3 8LQ
Liquidators:
Firm Name: Grant Thornton
Address: 1/4 Atholl Crescent Edinburgh EH3 8LQ


PRESTBURY GROUP: Cashback Plan as Chiefs Give Up Struggle
-------------------------------------------
This is London   June 2, 2000

The decision of millionaire property tycoons Nick Leslau and
Nigel Wray to sell up at AIM-listed minnow Prestbury Group and
return cash to investors just 2 1/2 years after it floated on the
stock market sent further shocks through the sector today after
yesterday's ?1.92 billion agreed bid for property giant MEPC
The two men made their names and fortunes as astute property
investors.

Leslau signalled the end of the last bull property market when he
sold the assets of Burford, his previous property company,
in 1997 - just as the market turned downwards.

The decision of Leslau and Wray once again prompted market
thoughts that other major property companies may follow them down
the same road.

Hammerson added 3 1/2p to 434 1/2p, Land Securities gained 1p to
806p and Great Portland moved ahead 1p to 232 1/2p, consolidating
gains they made following the MEPC bid yesterday.

Today Leslau said the reason for his getting out at Prestbury was
because the stock market was discounting the assets owned by
Prestbury. 'Nobody is more disappointed than me,' said Leslau.
But he promised to be back. 'I am still dead keen on property.
It's in my blood.'

Within weeks shareholders could receive two tranches of cash that
some City analysts were predicting could be as high as 70p a
share. An early payment of between 50p and 60p will be made.
Between them Leslau and Wray own 35% of the Prestbury equity.
They also have an influential City backing led by HSBC, Singer &
Friedlander, Schroders and Deutsche.

Today Leslau said he had talked to these investors prior to the
decision and they had all agreed that cash was preferable as it
was at a premium to the share price. Explained Leslau: 'It is
very hard to set

up a business from scratch and find that it is not valued.'

Prestbury still has ?30 million worth of property to sell in
Leicester, ?14 million worth in London's Surrey Quays and more
property in Butlers Wharf.

Its latest net asset per share figure is 65.4p, a 130% increase
from 27.6p a share since 1997.

Prestbury's share price has fallen 25% in the past year to 55
1/2p before rumours of the cashback scheme lifted it to last
night's close of 58 1/2p. In 1998 it reached a high of 140p.
Today Prestbury shares moved ahead 4p to 62 1/2p.


ROSE & GERRISH: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Rose & Gerrish Ltd
Company No: 3687495
Com. Business: Health & Beauty
Appointed on: 18/05/00
Type: Creditors
Appointed by: Creditors
Liquidators: Roderick G Butcher IPno: 8834
Firm Name: Moore Stephens Booth White
Address: Beaufort House 94-96 Newhall Street
City Postcode: Birmingham B3 1PB


SEYMOUR BUILDING: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Seymour Building Contractors Ltd
Company No: 2970296
Com. Business: Building Contractors
Appointed on: 18/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Paresh Shah IPno: 5786
Firm Name: Parker Wood
Address: 28 Church Road
City Postcode: Stanmore HA7 4XR


SHERWOOD LTD: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Sherwood Ltd
Company No: SC
Appointed on: 18/05/00
Type: Creditors
Appointed by: Creditors
Liquidators: J M Macadam IPno: 6314
Firm Name: Mackie Associates
Address: Central Chambers 109 Hope Street
City Postcode: Glasgow G2 6LL


SOROS FUND: Heavy Losses Force Third Top Executive to Resign
------------------------------------------------------------
Financial Times   June 2, 2000

Soros Fund Management has lost its third top executive since
April, with the resignation of Duncan Hennes, the hedge fund's
chief executive.

Mr Hennes's departure comes just six weeks after Stanley
Druckenmiller, who managed the Quantum Fund and Nicholas Roditi,
who managed the Quota Fund, quit the company.

George Soros, the legendary hedge fund investor, effectively
exited the large-scale hedge fund business earlier this year,
after his funds suffered heavy losses from a downturn in
technology shares.

Then in May, Mr Soros liquidated the majority of assets in the
Quantum Fund, his flagship fund.

More than 80 per cent of Quantum Fund's $7bn in assets has been
converted to cash and the fund renamed as the Quantum Endowment
Fund.

The size of the shift prompted speculation that Mr Soros was
preparing for a larger wave of investor redemptions than
previously acknowledged after his move to re-make his funds along
more conservative lines.


STITCH & TRIM: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Stitch & Trim Ltd
Company No: 3101224
Com. Business: Magazine Binders
Appointed on: 18/05/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Carl D Faulds IPno: 8767
Firm Name: Radford Sons & Co
Address: 12 Portland Street
City Postcode: Southampton SO14 7EB


THORNTONS: Issues Further Profit Warning on Lower Sales
-------------------------------------------------------
Financial Times   June 2, 2000

Thorntons, the speciality retailer and chocolate maker, issued a
further profits warning on Friday after worse-than-expected sales
at Easter.

The company said that although underlying like-for-like sales at
Easter increased by 6 per cent, this was offset by increased
stock levels which had to be discounted.

The latest warning comes after Thorntons announced a profits
warning in February and the departure of its then chief executive
Roger Paffard. Peter Burdon was appointed as his replacement last
month.

Thorntons said that lower sales and higher costs would mean pre-
tax profits in the year to June 24 were unlikely to exceed ?5m
($7.5m) before depreciation. The shares fell 12p to 93-1/2p.

Martin Allen, finance director, said the company had misjudged
stock levels: "The uplift of sales at Easter was not as good as
we had hoped. We got the planning wrong. . . .we had too many
Easter eggs and had one or two ranges that didn't sell as well."

He said Thorntons would now look at cutting its capital
expenditure programme this year from about ?15m to lower than
?10m. It would also look at cutting some of the duplication of
ranges, particularly products designed for children.

Analysts have downgraded their forecasts and said that Thorntons
could now be vulnerable to a takeover bid.

Matthew McEachran, retail analyst at Investec Henderson
Crosthwaite, said: "Thorntons needs to align its production,
retail and marketing and the problem in the last two years has
been that they have not all been lined up."

Another analyst said: "This is disappointing and the market is
waiting to see the delivery of this new strategy. Over the past
two years there have been promises which have not been
delivered."

The company also announced changes to its accounting policy on
depreciation. It said it would revise its policy to extend
fixtures and fittings life from four to five years which would
benefit the current trading year by ?2m.

It also said that all remaining costs on shop openings would be
written off this year. Thorntons said these adjustments would
raise pre-tax profits on continuing operations to about ?7m
before an exceptional loss.


UNITED INDUSTRIES: Troubled Group Sell All Engineering Businesses
-------------------------------------------
The Independent  4 June 2000

Sul Sahota, the former City analyst brought in to turn around
troubled United Industries, has decided to sell all the group's
engineering business and concentrate on plastics, writes Jason
Niss,.

Mr Sahota was brought in last month when institutional investors
forced the departure of Roy Freeland, the group's chief
executive.

Mr Freeland had been planning to take United private, but this is
understood to have irritated leading investors which include
Edinburgh Fund Managers, M&G and Knox D'Arcy, the investment
trust.

They had also become increasingly disenchanted with the
performance of United's shares, which have more than halved in
the past year, closing at 32.5p on Friday.

The decision to bring in Mr Sahota surprised many as he is best
known for his role as chief executive of Mackie International,
the Belfast-based engineer which collapsed last year.

His decision to sell off the engineering operation will be even
more controversial, as these delivered the bulk of United's ?4m
worth of annual profits.

However, Mr Sahota believes that he can sell the operations for
at least ?15m, which compares favourably to a current market
value for United of less than ?20m.

Mr Sahota was brought in to Mackie after the Belfast group, once
seen as a symbol of renewed hope for the troubled province, had
run into financial difficulties.

He was forced to restate the group's profits and was unable to
turn around the business, which fell into receivership just a few
months after he took control.

Despite this, Mr Sahota is still viewed as a turnaround expert,
and he is hoping that United's concentration on plastics will
lead it to be better rated by the City.

However, some followers are concerned that Mr Sahota may have
taken on quite a challenge, as some of the plastics businesses
are loss making.


UNIVERSAL WINDOWS: Notice of Creditors' Meeting
-------------------------------------------
Insolvency UK

Company Name: Universal Windows & Doors Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 12.00 pm
Meeting date: 07/06/00
Meeting address: 10-12 New College Parade Finchley Road
Meeting City Code: London NW3 5EP
Authorised by: C S Fey Director 17/05/00
Last day for proxy: 06/06/00
Proxy address: 10-12 New College Parade Finchley Road London NW3
5EP Liquidators: Kian Seng Tan
Firm Name: K S Tan & Co
Address: 10-12 New College Parade Finchley Road London NW3 5EP



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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and Beard Group, Inc., Washington, DC.  Peter A. Chapman and
Sharon Cuarto, Editors.

Copyright 2000.  All rights reserved.  ISSN 1529-2754.

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