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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

          Wednesday, June 14, 2000, Vol. 1, No. 27


                       Headlines

C Z E C H    R E P U B L I C

INVESTICNI A POSTOVNI: Government Weighs Bank's Possibilities
TATRA A.S: Troubled Truck Maker Approves Debt-For Equity Swap


L A T V I A

LAND BANK: Court Considers Insolvency Case


I T A L Y

TELECOM ITALIA: Debt to Rise to About 18 Bln. Euros


U N I T E D   K I N G D O M

ALFAST LTD: Notice of Liquidation Proceedings
ALPHA ACCIDENT: Notice of Administration Proceedings
ALPHA CREDIT: Notice of Administration Proceedings
APP PRINT: Notice of Receivership Proceedings
CARNELL AUTOMOTIVE: Notice of Receivership Proceedings

DIRECT LAMPS: Notice of Liquidation Proceedings
DRUMMOND: Struggling Textiles Group Steps Down to AIM
ELMCROFT CONTRACTS: Notice of Receivership Proceedings
ENGLISH ARCHITECTURAL: Notice of Receivership Proceedings
G&J ENTERPRISES: Notice of Administration Proceedings

GRACE BROTHERS: Notice of Liquidation Proceedings
HUDSON CROWN: Notice of Liquidation Proceedings
LEISURE SPORT: Notice of Liquidation Proceedings
LESLEY ROSS: Notice of Creditors Meeting
MONDIAL EXECUTIVE: Notice of Administration Proceedings

PALA LTD: Notice of Liquidation Proceedings
POWDERJECT: Falls as Losses Almost Double
RTA FACILITIES: Notice of Administration Proceedings
SILK INDUSTRIES: Shares Torn by Profit Warning
SOMERFIELD PLC: Ailing Supermarket Chain Denies Sale Talks


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

INVESTICNI A POSTOVNI: Government Weighs Bank's Possibilities
-------------------------------------------
Czech AM

June 12 - The Czech Cabinet is mulling over alternatives for IPB
- ranging from imposing forced administration on the bank to re-
selling Nomura's 46% stake to a strong investor - to avoid
possible Czech National Bank intervention, Czech dailies report.
The deadline appears to be June 26, the day the bank's audited
1999 results will be published that will most likely confirm the
bank's troubled situation. Nomura is reportedly uninterested in
the government's offer of a symbolic Kc 1, hoping to get at least
the Kc 3 bln it paid for its stake.


TATRA A.S: Troubled Truck Maker Approves Debt-For Equity Swap
-------------------------------------------
WARSAW, Jun 12, 2000 -- Troubled Czech truck maker Tatra a.s.
approved a debt-for-equity swap on Monday, part of a government
restructuring plan aimed at finding a strategic foreign investor.

The government, acting through privatization agency National
Property Fund and its subsidiary Kras, will raise Tatra's equity
to 5.17 billion crowns ($136.9 million) from 1.1 billion by
transforming debts to a state bank into shares, Tatra said in a
statement.

The company said the swap will reduce total outstanding debt by
70 percent. The decision was taken at Monday's extraordinary
general meeting.

The state will hold 90 percent of Tatra's shares after the swap
is completed, from a current 60 percent.

"Today's shareholders' agreement to strengthen equity...is a
precondition for a quick and well-managed process of the
selection of a (strategic) partner," the statement said.

Tatra's production dropped sharply following the collapse of
markets in the former eastern bloc, and the company fell into
deep losses. It said on Monday it returned to profit in the first
four months of 2000.


===========
L A T V I A
===========

LAND BANK: Court Considers Insolvency Case
-------------------------------------------
ISI Daily News  12 June 2000

The Bank of Latvia filed with the Riga District Court an
insolvency claim against to-be-liquidated bank LAND, the court
reported to BNS.

The court is expected to consider the bank's insolvency case June
12.

Bank of Latvia expert Gints Pranevskis told BNS that the bank
LAND's liquidator, having examined the bank's assets, established
that those funds were not enough to meet all claims by creditors
and asked the central bank to support insolvency of the bank
LAND.

The Bank of Latvia upheld the insovelncy claim against the bank
LAND and applied to the Riga District Court under statutory
procedures, he said.

According to Pranevskis, the bank's balance sheet as of April 28,
2000, gave the total value of its assets as 437,906 lats (USD
730,000) while their actual market value was just 180,000 lats.

By the statutory established deadline 122 creditors filed their
claims for a total of 1,233,752.8 lats. Claims by other creditors
amount to 150,833.2 lats. Thus, aggregate claims by creditors
against the bank LAND constitutes 1,384,586 lats.

Under the law about credit institutions bankruptcy proceedings
are opened as soon as the credit institution is declared as
insolvent.

The Bank of Latvia said July 16, 1999 it anulled LAND's banking
licence as the bank has mislead the central bank and provided
untrue information about its financial situation.

Moreover, LAND's equity capital failed to meet the capital
adequacy indicator required under the law and was lower than 2
million lats. The bank also had violated the law on credit
institution as its reserves at the correspondent account with the
Bank of Latvia and vault cash was lower than the norm required by
the central bank council.

The Riga District Court declared LAND as to-be-liquidated July
30, 1999.

The court appointed Aug. 24, 1999 SIA Gramatvedibas Agentura
(Bookkeeping Agency) as LAND's administrator. The administrator
is represented by barrister Viktorija Portere.


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

TELECOM ITALIA: Debt to Rise to About 18 Bln. Euros
-------------------------------------------
NEW YORK, June 12 (Reuters) - Italian telephone company Telecom
Italia said on Monday it expects its debt to rise to about 18
billion euros by the end of the year, up from 8.1 billion euros
at the end of 1999.

Speaking to investors in New York, Telecom Italia executives
reiterated that its priorities for the year include reducing cost
of capital, generating cash to support growth, improving capital
allocation and improving profitability.

Shares of Telecom Italia closed down 0.07 percent at 15.28 euros.


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

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

Company Name: Alfast Ltd
Company No: 3609495
Com. Business: Transport
Appointed on: 02/06/00
Type: Creditors
Appointed by: Creditors
Liquidators: Salman Saud IPno: 6042
Firm Name: Rifsons Saud
Address: 105-111 Euston Street
City Postcode: London NW1 2EW


ALPHA ACCIDENT: Notice of Administration Proceedings
-------------------------------------------
Insolvency UK

Company Name: Alpha Accident Management Group Plc
Company No: 3699969
Com. Business: Accident Management
Trading Name:
Trade clasif.: 33
Appointed on: 23/05/00
Type: Administration Order
Administrators: Malcolm Cohen IPno: 6825 Simon Michaels 8824
Firm Name: BDO Stoy Hayward
Address: 8 Baker Street
City Postcode: London W1M 1DA


ALPHA CREDIT: Notice of Administration Proceedings
-------------------------------------------
Insolvency UK

Company Name: Alpha Credit Repair Ltd
Company No: 3182663
Com. Business: Accident Management
Trading Name:
Trade clasif.: 33
Appointed on: 23/05/00
Type: Administration Order
Administrators: Malcolm Cohen IPno: 6825 Simon Michaels 8824
Firm Name: BDO Stoy Hayward
Address: 8 Baker Street
City Postcode: London W1M 1DA


APP PRINT: Notice of Receivership Proceedings
-------------------------------------------
Insolvency UK

Company Name: A P P Print Services Ltd
Company No: 2833896
Com. Business: Printers
Trading Name:
Trade clasif.: 10
Appointed on: 31/05/00
Appointed by: GLE Invoice Finance Ltd
Type: Administrative
Receivers: P S Dunn IPno: 2368, S R Thomas 1289
Firm Name: Horwath Clark Whitehill
Address: Sherlock House 7 Kenrick Place
City Postcode: London W1H 3FF


CARNELL AUTOMOTIVE: Notice of Receivership Proceedings
-------------------------------------------
Insolvency UK

Company Name: Carnell Automotive Ltd
Previous Name: Curveball Ltd
Company No: 3396473
Com. Business: Sale of Motor Vehicles
Trade clasif.: 5010
Appointed on: 31/05/00
Appointed by: HSBC Bank Plc
Type: Administrative
Receivers: Edward Klempka IPno: 5791, S C Mackeller 6883
Firm Name: PricewaterhouseCoopers
Address: 9 Bond Court
City Postcode: Leeds LS1 2SN


DIRECT LAMPS: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Direct Lamps Ltd
Company No: 2722110
Com. Business: Lamp Wholesalers
Appointed on: 02/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Jamie Taylor IPno: 2748
Firm Name: Begbies Traynor
Address: The Old Exchange 234 Southchurch Road
City Postcode: Southend-on-Sea SS1 2EG


DRUMMOND: Struggling Textiles Group Steps Down to AIM
-------------------------------------------
Citywire  June 9, 2000

Struggling textiles group Drummond is stepping down to AIM after
a substantial reorganisation programme has put pressure on its
cash position.

Price competition in the retail sector is also taking its toll,
Drummond admitted this afternoon.

The company is talking to major shareholder Chargeurs Fabrics
over a possible equity injection.

The shares slumped 4p to 7p.


ELMCROFT CONTRACTS: Notice of Receivership Proceedings
-------------------------------------------
Insolvency UK

Company Name: Elmcroft Contracts Ltd
Company No: 1216131
Com. Business: Joinery Installation
Trade clasif.: 4542
Appointed on: 26/05/00
Appointed by: HSBC Bank Plc
Type: Administrative Receivers: L A Manning IPno: 6477, A G
Stoneman 8728
Firm Name: Kroll Buchler Phillips
Address: 84 Grosvenor Street
City Postcode: London W1X 9DF


ENGLISH ARCHITECTURAL: Notice of Receivership Proceedings
-------------------------------------------
Insolvency UK

Company Name: English Architectural Glazing Ltd
Company No: 1740877
Com. Business: Design/Manufacture Glazed Windows
Appointed on: 30/05/00
Appointed by: National Westminster
Type: Administrative
Receivers: Roger H Oldfield IPno: 2515, Paul F Jeffery 5768
Firm Name: KPMG
Address: Arlington Business Park
City Postcode: Theale RG7 4SD


G&J ENTERPRISES: Notice of Administration Proceedings
-------------------------------------------
Insolvency UK

Company Name: G & J Enterprises Group Plc
Company No: 2156838
Com. Business: Import/Supply Tools/Machinery
Trade clasif.: 15
Appointed on: 23/05/00
Type: Administration Order
Administrators: Jonathan M Birch IPno: 5328 Maurice Moses 5542
Firm Name: Levy Gee
Address: PO Box 2653 66 Wigmore Street
City Postcode: London W1A 3RT


GRACE BROTHERS: Notice of Liquidation Proceedings
------------------------------------------
Insolvency UK

Company Name: Grace Brothers Ltd
Company No: IR
Appointed on: 02/06/00
Type: Members
Appointed by: Members
Liquidators: Sean P Sheehan IPno:
Firm Name:
Address:
City Postcode: Dublin


HUDSON CROWN: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Hudson Crown Ltd
Company No: 3511324
Com. Business: Construction
Appointed on: 02/06/00
Type: Creditors
Appointed by: Creditors
Liquidators: Salman Saud IPno: 6042
Firm Name: Rifsons Saud
Address: 105-111 Euston Street
City Postcode: London NW1 2EW


LEISURE SPORT: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Leisure Sport (Oban) Ltd
Company No: SC
Appointed on: 02/06/00
Type: Creditors
Appointed by: Creditors
Liquidators: Douglas B Jackson IPno: 5201
Firm Name: Moore Stephens Booth White
Address: Allan House 25 Bothwell Street
City Postcode: Glasgow G2 6NL


LESLEY ROSS: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Lesley Ross Ltd
IA 1986 Section: 98 Creditors
Meeting Time: 10.00 am
Meeting date: 17/06/00
Meeting address: 60 Bank Street
Meeting City Code: Kilmarnock KA1 1ER
Authorised by: George Miller Director
Last day for proxy:
Proxy address:
Liquidators:
Firm Name: W White & Co
Address: 60 Bank Street Kilmarnock KA1 1ER


MONDIAL EXECUTIVE: Notice of Administration Proceedings
-------------------------------------------
Insolvency UK

Company Name: Mondial Executive Cars Ltd
Company No: 3096896
Com. Business: Accident Management
Trade clasif.: 33
Appointed on: 23/05/00
Type: Administration Order
Administrators: Malcolm Cohen IPno: 6825 Simon Michaels 8824
Firm Name: BDO Stoy Hayward
Address: 8 Baker Street
City Postcode: London W1M 1DA


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

Company Name: Pala Ltd
Company No: IR
Appointed on: 02/06/00
Type: Members
Appointed by: Members
Liquidators: James Stafford IPno:
Firm Name: Friel Stafford
Address: 13 Fitzwilliam Square
City Postcode: Dublin 2


POWDERJECT: Falls as Losses Almost Double
-------------------------------------------
Financial Times   June 12, 2000

Worse-than-expected full-year results for PowderJect, the UK drug
delivery company, prompted a 13.5 per cent fall in its shares on
Monday, despite good news on a research collaboration.

Serono, a Swiss group, is to conduct clinical trials on a new
formulation of Gonal-F, the leading infertility drug, after
reformulating it for use in PowderJect's needle-free injection
system.

The move will trigger a o1m ($1.5m) milestone payment to
PowderJect.

The company has also signed a deal with Baxter, the US healthcare
company, to evaluate the PowderJect device with an undisclosed
protein, possibly Recombinate, a haemophilia treatment. Financial
terms were not disclosed.

Paul Drayson, chairman, reported a near-doubling of losses from
o9.39 to o18.4m in the year to March 31, as research and
development spending rose 52 per cent to o21.6m.

Analysts had been forecasting losses of o12.7m. Concerns were
raised that PowderJect's collaborative projects, its main source
of income, are not going as well as management hoped.

Revenues fell from o5.84m to o2.75m, as milestone payments on
research partnerships were delayed.

PowderJect has brought in PA Consulting to advise on
manufacturing systems, raising fears about technical problems
with its injector.

This followed previously announced delays to the expected launch
of lead product Lidocaine, a local anaesthetic. Analysts said
this could delay PowderJect moving into profit until 200 4.

The shares closed 60p lower at 3821/2p, well below their high of
more than o10 in December.

However, Karl Kegan, analyst at UBS Warburg said the shares had
been unfairly hit: "The emphasis on gearing up for manufacturing
shows they are committed to rolling out the device."


RTA FACILITIES: Notice of Administration Proceedings
-------------------------------------------
Insolvency UK

Company Name: RTA Facilities Ltd
Company No: 2929700
Com. Business: Accident Management
Trade clasif.: 33
Appointed on: 23/05/00
Type: Administration Order
Administrators: Malcolm Cohen IPno: 6825 Simon Michaels 8824
Firm Name: BDO Stoy Hayward
Address: 8 Baker Street
City Postcode: London W1M 1DA


SILK INDUSTRIES: Shares Torn by Profit Warning
-------------------------------------------
Citywire  June 9, 2000

Silk shares torn by profit warning Fabric manufacturer Silk
Industries issued a severe profit warning this morning, sending
shares tumbling 12%.

Silk revealed that it was likely to make a loss in the year to 30
April 2000, compared to a broker's forecast of o300,000 profit,
due to losses incurred by the Paul Costelloe division.

However, it believes that cost savings will lead to higher
profits for the following year, above expectations of o500,000.

Silk, which made a profit of o580,000 last year, is also planning
a series of asset sales.

Shares in Silk Industries slid 3p to 21.5p.



SOMERFIELD PLC: Ailing Supermarket Chain Denies Sale Talks
-------------------------------------------
Financial Times   June 12, 2000

Somerfield, the ailing UK supermarket chain, on Monday denied it
was in talks with venture capitalists and said its position of
not engaging in further discussions remained unchanged.

Analysts cast doubt on whether a venture capitalist would find
sufficient value in the company.

Somerfield issued a statement after a sharp rise in the share
price on Monday morning following reports over the weekend that
it was in talks with the private US venture capital group Apollo,
which was said to be putting together a bid valuing the company
at about o400m ($600m).

In early trading the share price reached 69p but by late morning
trade had fallen back to 58.5p, 17 per cent up on the previous
close.

The company said: "The board has noted the weekend press
speculation and today's share price movement. The board has been
aware of venture capital interest since December 1999 and
reviewed the situation in March and April 2000 when it decided
not to engage in any further discussions. The policy of the board
remains unchanged."

Analysts were sceptical about how much value a venture capitalist
could get from a purchase of Somerfield. One said: "I think any
venture capitalist would see this as an extremely difficult
proposition and a purchase would involve a lot of risk on
somebody's part. Somerfield is in an extremely difficult
situation and any turnaround is going to take a very long time."

In May, Somerfield delivered the latest in a series of grim
profit warnings with news of steep declines in fourth quarter
sales.

The group, which has been stumbling from crisis to crisis since
its merger with Kwik Save, the discount retailer, two years ago
said like-for-like sales were almost 10 per cent lower in the
final quarter.



S U B S C R I P T I O N   I N F O R M A T I O N

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