/raid1/www/Hosts/bankrupt/TCREUR_Public/000621.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

          Wednesday, June 21, 2000, Vol. 1, No. 32


                       Headlines

C Y P R U S

BEOGRADSKA BANKA: Cyprus orders Branch Closure


C Z E C H   R E P U B L I C

INVESTICNI A POSTOVNI: Nomura Takes Controlling Stake of Troubled
Bank
NOVA TV: Under Bankruptcy Proceedings


U N I T E D   K I N G D O M

69 DIVING: Notice of Liquidation Proceedings
AP DEGVILLE: Notice of Liquidation Proceedings
AGRISPARES (UK): Notice of Liquidation Proceeding
B+E TECHNOLOGY: Notice of Liquidation Proceedings
BRACKLIN FARMS: Notice of Creditors Meeting

CALEDONIA GOLF: Notice of Liquidation Proceedings
CHERRYREEF LTD: Notice of Liquidation Proceedings
COPYTEC LTD: Notice of Liquidation Proceedings
CROSS PARK: Notice of Liquidation Proceedings
CYBERNETIC INSTRUMENTS: Notice of Liquidation Proceedings

DISPLAY IMAGING: Notice of Creditors Meeting
FACTORY DIRECT: Notice of Liquidation Proceedings
JUPITER: Set to Lose Trust Business
POST OFFICE: Sees Quick End to ?1 Monopoly
TOROTRAK: Hit by Increased R & D Cost
VERSAILLES: Under Legal Process to Disclose Reasons of Failure


===========
C Y P R U S
===========

BEOGRADSKA BANKA: Cyprus orders Branch Closure
-------------------------------------------
Financial Times   June 19, 2000

The Central Bank of Cyprus has ordered the closure of the Nicosia
branch of Beogradska Banka, a state-owned Serbian bank closely
linked with President Slobodan Milosevic and his regime, on
grounds of insolvency.

A central bank official said Beogradska's licence to operate an
offshore banking unit had been revoked last month after auditors
expressed doubts about whether the Nicosia branch was still a
going concern.

The central bank has already frozen some Dollars 200m (Pounds
132.4m) of Beogradska's assets in Cyprus, following an attempt by
Slovenia to reclaim part of its foreign exchange holdings through
a Cyprus court. Kerin Hope, Nicosia


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

INVESTICNI A POSTOVNI: Nomura Takes Controlling Stake of Troubled
Bank
-------------------------------------------
Financial Times       June 19, 2000

It was not meant to end like this. In 1998 Nomura Securities, the
leading investment bank in the Czech Republic, took a controlling
stake in Investicni a postovni banka (IPB), the most influential
domestic bank. The combination seemed a strong one.

Yet on Friday, in the country's worst banking crisis, IPB was put
under forced administration. All week depositors had scrambled to
close their accounts following speculation that an audit later
this month would reveal IPB was insolvent.  

The forced administration will shake confidence in the banking
system and damage the reputation of leading politicians and the
central bank, which failed to exercise proper oversight of IPB
until it was too late.

It will also deeply embarrass Nomura, which has made huge profits
from selling IPB's corporate shareholdings, though it has been
careful not to get involved with the management of the bank
itself.

IPB epitomises the flaws in the transition from communism under
Vaclav Klaus, the former centre-right prime minister. IPB was
heavily involved in the voucher privatisation programme as both
an investor - through its investment funds - and as a creditor to
entrepreneurs.

Loans given to companies in which the bank had shares were often
not repaid and equity was taken instead. IPB ended up with a
worsening loan portfolio but a valuable collection of
shareholdings.

IPB was so successful in this because it was the first big bank
to become privately owned after the state's stake was diluted
through equity increases. It also possessed in Libor Prochazka
and Jiri Tesarruthless managers with political connections.

IPB was always close to Mr Klaus's Civic Democratic party and
after the change of government in July 1998 it hedged its bets by
bringing in Jan Klacek, the Social Democrats' economic adviser,
as chief executive.

Where others saw a threat, Nomura saw an opportunity. Randall
Dillard, chief deal maker in central Europe, had clashed with IPB
and had come away admiring their aggressive approach. "It's what
you need in the equity markets," he says. "You can't take
prisoners."

IPB's managers first approached Nomura when they were faced with
a privatisation tender that was likely to cost them their jobs.

Nomura took a 10 per cent stake and, with shares held by IPB
subsidiaries or allied companies, was able to outvote the state.

In March 1998, after a ten der in which there was only one real
bidder, Nomura bought the state's 36 per cent stake for a mere
Kc3bn (Dollars 80m).

Ivan Pilip, the former finance minister who sold the bank, says
the two were natural partners: "They both know how to live in
this special environment here."

After equity increases during which Nomura says it invested a
further Kc4bn, its shareholding reached 46 per cent but it stayed
a portfolio investor with no seats on the management board.

Instead Nomura focused on IPB's equity stakes - in particular
Prazdroj and Radegast, the country's two biggest breweries.
Nomura bought the breweries from IPB investment funds for an
undisclosed sum.

After the competition office changed its mind and permitted the
breweries' merger, they were sold last year to South African
Breweries for Dollars 629m.

"They definitely got their money back just from this one deal,"
comments Vojtech Kraus, an analyst at HSBC.

The problem for Nomura afterwards was how to withdraw from
without too much embarrassment or financial loss. A crisis was
looming as the central bank and IPB's auditors, Ernst & Young,
were finally becoming stricter. IPB reported a preliminary Kc1bn
profit for 1999 but Ernst & Young is reportedly demanding Kc21bn
of extra provisions.

One foreign bank's executive says the provisioning gap could be
around Kc70bn, equal to that at two other big state-owned banks.

The imposition of forced administration means Nomura has
effectively lost its investment and the government will pick up
the pieces by assuming the problem loans and selling the retail
bank. Nomura can at least be thankful it is out of the game. For
the politicians and IPB's top managers the inquest is just
beginning.  


NOVA TV: Under Bankruptcy Proceedings
-------------------------------------
Daily Variety     June 19, 2000

CME has filed for bankruptcy proceedings against Nova TV license
holder CET-21 in Prague's regional commercial court.

The new charge is one of many legal procedures in the year-long
dispute between CME and Vladimir Zelezny (majority owner of the
station's license) over control of Nova TV.  

CME filed after making a formal request for the return of $ 4.5
million given as advance payments for programming purchases. CME
advanced the money between November 1998 and May 1999 for program
acquisitions for Nova.

CME claims the programming rights were never transferred to it, a
charge Nova disputes.

A Nova spokesman dismissed CME's action as "a media play."

Nova further responded that the filing was insignificant, since
at least two creditors must bring a claim against a company in
order to begin proceedings.

However, CME noted that there are other creditors who could also
file, including the Czech financial authorities. Nova was
recently hit with a charge of $ 27 million in unpaid back taxes.  


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

69 DIVING: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: 69 Diving Ltd
Company No: 3103455
Com. Business: Retailers Diving Equipment/Tuitions
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Bhagu Mistry IPno: 5762
Firm Name: B Mistry & Co
Address: Pride House Rectory Lanr City Postcode: Edgware HA8 7LG


AP DEGVILLE: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: A P Degville & Co Ltd
Company No: 3327992
Com. Business: Painters & Decorators
Appointed on: 06/06/00
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


AGRISPARES (UK): Notice of Liquidation Proceeding
-------------------------------------------
Insolvency UK

Company Name: Agrispares (UK) Ltd
Company No: 2888213
Com. Business: Agricultural Machine Spares
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: John W Lewis IPno: 6231
Firm Name: J W Lewis & Co
Address: 1st Floor 62 High Street Hanham
City Postcode: Bristol BS15 3DR


B+E TECHNOLOGY: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: B + E Technology Ltd
Previous Name: Bielomatik (London) Ltd
Company No: 487347
Com. Business: Engineers
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: A J Clark IPno: 6759
Firm Name: Moore Stephens Booth White
Address: Sidcup House 12-18 Station Road
City Postcode: Sidcup DA14 6NZ


BRACKLIN FARMS: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Bracklin Farms Ltd
Company No: 1961600
Com. Business: Poultry
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors
Liquidators: Michael F Stevenson IPno: 8154
Firm Name: Smith & Williamson
Address: Old Library Chambers 21 Chipper Lane
City Postcode: Salisbury SP1 1BG


CALEDONIA GOLF: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Caledonia Golf & Leisure Ltd
Company No: SC176987
Com. Business: Other Recreational Activities
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors
Liquidators: James R Dickson IPno: 8222
Firm Name: Dickson & Co
Address: 34 High Street
City Postcode: East Lothian EH40 3AB


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

Company Name: Cherryreef Ltd
Company No: 2173956
Com. Business: Property Investment
Appointed on: 06/06/00
Type: Members
Appointed by: Members
Liquidators: Mark R Fry IPno: 8588
Firm Name: Begbies Traynor
Address: The Old Exchange 234 Southchurch Road
City Postcode: Southend-on-Sea SS1 2EG


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

Company Name: Copytec Ltd
Company No: 2955954
Com. Business: Sellers Photocopying Equipment
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Stephen M Rout IPno: 6062
Firm Name: Stephen M Rout & Co
Address: 12 Signet Court Swanns Road
City Postcode: Cambridge CB5 8LA


CROSS PARK: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Cross Park Community Care Ltd
Company No: 3180588
Com. Business: Community Care
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Christopher Mackenzie-Thorpe IPno: 8813
Firm Name: Chris Mackenzie-Thorpe
Address: Lynstan House 64a Bolton Street
City Postcode: Brixham TQ5 9DH


CYBERNETIC INSTRUMENTS: Notice of Liquidation Proceedings
-------------------------------------------
Insolvency UK

Company Name: Cybernetic Instruments Ltd
Company No: 1756561
Com. Business: Restaurant
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Shay Lettice IPno: 8366
Firm Name: Peters Elworthy & Moore
Address: Salisbury House Station Road
City Postcode: Cambridge CB1 2LA


DISPLAY IMAGING: Notice of Creditors Meeting
-------------------------------------------
Insolvency UK

Company Name: Display Imaging Services Ltd
Company No: 3836529
Com. Business: Digital Print Originators
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Michael Ioannou IPno: 6895
Firm Name: Gregory Michaels & Co
Address: 6 Southwick Mews Paddington
City Postcode: London W2 1JG


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


Company Name: Factory Direct (UK) Ltd
Company No: 3799766
Com. Business: Retail of Textiles/Clothing
Appointed on: 06/06/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: G W Rhodes IPno: 2478
Firm Name: Begbies Traynor
Address: 2-3 Pavilion Buildings
City Postcode: Brighton BN1 1EE


JUPITER: Set to Lose Trust Business
-----------------------------------
The Times  June 20, 2000


JUPITER, the asset manager thrown into turmoil last month by the
ousting of founder and chief executive John Duffield, is braced
for the loss of investment trust mandates worth up to ?1.4
billion.

The board of the Jupiter Split investment trust yesterday served
a two-year notice on the fund manager, citing executive and
administrative changes. Fund analysts said other trusts
controlled by Jupiter could follow suit.

Among the directors of Jupiter Split, which was run by the star
manager William Littlewood until May 1998, are Mr Duffield and
Michael Heathcoat-Amory, a former non-executive director of
Jupiter. Mr Duffield sits on at least four other investment
trusts under the management of Jupiter.

Any change to the management of an investment trust does not
usually require a vote of shareholders, but is at the discretion
of the board. However, the early termination of a management
contract generally carries a hefty penalty, sometimes up to 2 per
cent of the fund's capital value.

Twelve-month rolling contracts have become the norm for the
investment trust industry, but Jupiter has hung on to two-year
notice periods. The earliest opportunity for a change of manager
without penalty comes at the end of the year when Jupiter
European reaches its liquidation date. Its board numbers not only
Mr Duffield, but also John Craig and Viscount Astor, both of whom
quit the fund manager last month.

An investment trust analyst said: "They may be doing this for
reasons of good corporate governance. On the other hand, it could
be a warning from Mr Duffield. By picking a fund that used to be
run by Mr Littlewood, it is guaranteed publicity." Investment
trusts represent a little over 10 per cent of Jupiter's business.

Jupiter has moved to lock in fund managers by offering a bonus
package worth ?26 million. This includes a loyalty payment as
well as a guaranteed bonus up to ten times salary. Many
executives have also had their basic salaries lifted to "the top
end of market rates". Edward Bonham-Carter, the new joint-chief
executive, has also negotiated a new share scheme from January 1.


POST OFFICE: Sees Quick End to ?1 Monopoly
-------------------------------------------
The Times   June 20, 2000

THE Post Office conceded yesterday that its monopoly on letters
costing less than ?1 is likely to be cut within a year.

Announcing losses of ?264 million, its first full-year deficit
for 24 years, John Roberts, chief executive, said he expected
Britain's new postal regulator to make reducing the monopoly a
priority.

Mr Roberts, however, reiterated the Post Office's strong
opposition to European Commission plans for a more drastic cut in
its monopoly.

He said that, while the Post Office expected to return to profit
next year after one-off writedowns this year, the EU's plans for
a reduction in the monopoly to letters weighing 50g against the
present system of more than 300g, would drive the business into
an immediate loss.

The Post Office has calculated that a reduction in the monopoly
to 50p (150g), which the Government tried to introduce last year,
would cost it ?100 million over three years.

This year's losses came after a ?571 million writedown on its
Horizon programme to computerise all post offices because of the
loss of business from the Government's decision to switch
benefits payments to automated credit transfer in a two-year
programme starting in 2003. This was added to by a ?50 million
writedown and ?35 million restructuring charge for Parcelforce.

The Government is soon to set out plans to subsidise rural post
offices amid growing concern for the network.

The Cabinet Office's Performance and Innovation Unit report,
which will set out the Government's minimum requirements for the
network, could be published tomorrow or next week. Last year 383
sub post offices closed compared with 200 a year for much of the
past decade.

Three thousand jobs are expected to be lost at the Post Office
this year from just over 200,000 people employed in the UK,
following 2,500 that were lost last year.

No job cuts are to be imposed and the Post Office is relying on
normal turnover, although a substantial number of the lost
positions will fall in management. Some six hundred managers left
in the last 12 months with the same figure expected to go this
year.


TOROTRAK: Hit by Increased R & D Cost
-------------------------------------------
The Times

TOROTRAK, the automative transmissions designer, said yesterday
research and development costs had continued to drag its results
lower (Bianca Wordley writes).

Investment costs of ?11.4 million led to a near doubling in pre-
tax losses in the year to March 31 of ?8.48 million.

Maurice Martin, chief executive, said the company, which has
licences with Ford, GM, Toyota and BMW had made "ground breaking"
advances in the past year on its core technology.


VERSAILLES: Under Legal Process to Disclose Reasons of Failure
-------------------------------------------
Financial Times      June 19, 2000

Two members of the group of wealthy individuals that helped fund
Versailles, the collapsed FTSE-250 trade finance group, have
launched a court action to recover money and find out more about
the group's demise.

Carl Cushnie, Versailles' chief executive, has made an
unsuccessful attempt to strike out the claim, which has been
lodged in a court in the British Virgin Islands.

The aim of the action is to liquidate a BVI company called
Trading Partners, which played a key role in financing Versailles
before it went into receivership in January.  

Michael Moseley, one of the investors, said he was taking the
court action in part to learn more about what happened. "I
believe this should be investigated," he said. "I can't think of
anyone else who could do it apart from a liquidator."

Versailles went bust after accountants discovered it had booked a
series of false transactions, estimated to amount to Pounds 69m.
The fake entries made it look as if the group ran a successful
business as a lender to small companies that were short of
capital, advancing them money while they waited for their
customers to pay up.

The case is being investigated by the Serious Fraud Office and
PwC, the receiver, which has issued a writ against Frederick
Clough, finance director, alleging conspiracy to defraud.

Trading Partners acted as a channel for money from a group of
about 20 well-off people, including Mr Moseley, who put up money
to finance individual transactions by Versailles in exchange for
generous interest payments.

Many of the investors, who consisted largely of friends and
acquaintances, claim they were sleeping partners with little or
no involvement in how Versailles was run.

Funds from the investors were held in a UK company before being
moved to the BVI, where public disclosure requirements for
offshore businesses are minimal.

A number of the investors say they were not told of the move
offshore and have struggled since to find out who owned and
controlled Trading Partners.

The investors were owed Pounds 23m at the time of Versailles'
collapse, according to a claim submitted to PwC.

Mr Moseley said he was taking the action to try to achieve a
return on behalf of all of the traders.

"Twenty odd millions of funds disappeared into Versailles," Mr
Moseley said. "It clearly belongs to the traders and can only be
got at by appointing a liquidator."

A full hearing to decide the fate of Trading Partners is due late
next month.



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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing  and photocopying) is strictly prohibited without
prior written permission of the publishers.  

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is $575 per half-year, delivered
via e-mail.  Additional e-mail subscriptions for members of the
same firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 301/951-6400.


             * * * End of Transmission * * *