/raid1/www/Hosts/bankrupt/TCREUR_Public/000627.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, June 27, 2000, Vol. 1, No. 36


                        Headlines

C R O A T I A

NAMA: Insolvent Long Before Finally Declared Bankrupt


C Z E C H   R E P U B L I C

INVESTICNI A POSTOVNI: Bank Has Zero Stock Value
INVESTICNI A POSTOVNI: Bank Sale was a "Robbery"
INVESTICNI A POSTOVNI: Nomura Cries Foul
INVESTICNI A POSTOVNI: Biggest Banking Failure Sparks Party Fury
VITKOVICE: Troubled Steelworks Files Settlement Proposal


D E N M A R K

TIVOLI:  Scandinavian Tobacco Company Buys Controlling Stake


E S T O N I A

EESTI TELEVISION: PwC's Action Could Lead to Bankruptcy
ESTONIAN NEWS: To Liquidate Due to Heavy Losses


G E R M A N Y

COMMERZBANK: Bank Could Be Dismantled if Merger Try Fails


H U N G A R Y

MOL: Higher Gas Prices To Mean Huge Losses for Hungarian Company


R O M A N I A

BANCA AGRICOLA:  Deadline Extended for Banca Agricola Bids


R U S S I A

SIDANKO: Creditor Settlement Means no Dividends


U K R A I N E

LYNOS:  Creditor to Sue State Property Fund


U N I T E D   K I N G D O M

GRAMPIAN HOLDINGS: Future Remains Uncertain
ICM COMPUTER: The Company Has Nearly Halved in Value
INDEPENDENT ENERGY: From Bad to Worse, Faces LSE Probe
INSTITUTE OF EXPORT: Suffering a Financial Crisis
MMI:  Businessman denies debt rumours
ROCK 2000: Process of Winding Up


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C R O A T I A
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NAMA: Insolvent Long Before Finally Declared Bankrupt
-------------------------------------------
Financial Times  June 22, 2000

The Nama department store by Ban Jelacic square, in the heart of
Zagreb, occupies what should be prime retailing space. Inside,
however, shoppers face a stark illustration of the Croatian
economy's inefficiency.

Empty display cabinets are tended by underemployed staff. Clothes
in the window look old fashioned, and unlikely to fetch the high
profit margins needed to rent the site.  

Nama was insolvent long before it was finally declared bankrupt
this month. Plenty of other companies are still insolvent without
having been bankrupted.

The government-run central payments institute (ZAP) puts total
inter-company payment arrears at more than Kn26bn (Dollars
3.27bn), 18 per cent of last year's gross domestic product (GDP),
and twice the amount of money in circulation.


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

INVESTICNI A POSTOVNI: Bank Has Zero Stock Value
------------------------------
REUTERS, June 23, 2000

The Czech Securities Commission (SEC) said on Friday it
recommended that funds holding stock in failed bank IPB a.s.
value the shares at zero.

IPB, 46 percent controlled by a unit of Nomura Securities , was
put under forced administration last week due to liquidity
problems and an auditor's report that losses most likely exceed
equity.

Early this week the bank's entire balance sheet - but no equity -
was sold to CSOB a.s., a unit of Belgium's KBC .

"In relation to the forced administration at IPB and to the
consequent sale...the SEC recommends that all banks that are in
the position of depositor of investment, pension and mutual funds
evaluate IPB shares held by funds at zero," the SEC said.

IPB's stock traded at all-time lows of 57.36 crowns last Thursday
before it was suspended. It had reached a year high of 141 crowns
in January.

SEC also recommended that price of bonds issued by IPB remains
calculated in line with standard methodology - with respect to
the fact that all obligations of IPB were transferred to CSOB and
are guaranteed by the state.

Deputy Minister Jan Mladek was quoted as saying that IPB would
post losses of at least 50 billion crowns ($1.31 billion) for
1999. The bank had total equity of 15.9 billion in September last
year.

Nomura bought a 36 percent stake in IPB from the Czech government
in 1998 for three billion crowns, and later raised it to a
majority through a six billion crown equity expansion before
reducing it again to 46 percent.


INVESTICNI A POSTOVNI: Bank Sale was a "Robbery"
------------------------------
REUTERS, June 23, 2000

The largest Czech opposition Civic Democratic Party (ODS) on
Thursday sharply attacked the sale of troubled bank IPB a.s. to a
unit of Belgian KBC Bank, calling the swift deal earlier this
week a "robbery".

Leaders of the ODS, which has kept the minority Social Democrat
cabinet afloat under a power-sharing agreement since the 1998
election, demanded a parliamentary investigation into the deal
arranged by the government and central bank.

ODS Chairman Vaclav Klaus told a news conference that his party,
which had close ties to IPB, would throw its support behind a
criminal complaint which he said was filed against the sale by
one of IPB's shareholders on Thursday. He said the complaint did
not name anyspecific person.

IPB, 46 percent owned by a unit of Nomura Securities, was
declared illiquid and put under CNB administration on Friday amid
a run on deposits and after a preliminary auditor's report saying
IPB's losses exceeded equity.

All assets of the third largest bank were then sold with state
guarantee to CSOB, a unit of Belgium's KBC, a move widely praised
by financial and banking analysts. "We have become witnesses to a
bank robbery, which happened in broad daylight with direct state
assistance," Klaus said, reading a statement agreed by his
party's executive.

The state sold its 36 percent stake to Nomura in 1998 in a
process prepared by a government led by Klaus, who had previously
praised Nomura as a potential partner for IPB.

Klaus, who has often been a fierce critic of Central Bank
Governor Josef Tosovsky, said on Thursday the takeover of IPB was
a plot by a group of politicians and financiers to gain control
of a large part of the Czech economy.

Tosovsky served as caretaker Prime Minister briefly in 1998 after
Klaus's government fell and is frequently mentioned as a possible
rival to Klaus to succeed President Vaclav Havel when his term
ends in 2003.

GOVERNMENT AS VICTIM

Klaus said the ODS demanded a "transparent search for a strategic
owner" for IPB and believed the governing party itself was a
victim of a conspiracy by the group.

The government has fully backed the central bank's action.
Finance Minister Pavel Mertlik was a party in the transaction
providing guarantees for losses the CSOB may incur from taking
over IPB's balance sheet.

The central bank has said CSOB was the only potential partner
ready to take over IPB immediately and thus help to end
withdrawals that exceeded 50 billion crowns since February.

Analyst Jonathan Stein of East-West Institute in Prague said it
was no surprise the ODS had complained about the IPB sale, but
that in his opinion the cabinet acted properly.

"There was a very close relationship between the ODS and IPB in
the past," Stein said, but added that the party would likely not
try to overthrow the cabinet due to the sale.

"The ODS is going to scream, because its economic interests were
hurt, but it is not the issue for them to cancel the opposition
agreement (keeping the cabinet afloat)," Stein said.


INVESTICNI A POSTOVNI: Nomura Cries Foul
------------------------------
REUTERS, June 24, 2000

Nomura International Plc said on Friday the Czech central bank's
takeover last week of troubled Czech bank IPB a.s., 46-percent
controlled by Nomura, was politically motivated and unfair.

In its first reaction to last Friday's forced administration of
IPB, Nomura said in a statement that the sale of all IPB's assets
to rival bank CSOB, a unit of Belgium's KBC on Monday was opaque.

"We are concerned by the apparently political nature of recent
banking sector decisions in the Czech Republic," the statement
said, without elaborating what political connections the case
had.

"We believe that the nature of the transfer of IPB to CSOB was
neither fair nor transparent," it added.

The statement said Nomura International, the Europe-based unit of
Japan's Nomura Securities, would now focus on protecting its
shareholder interests, but did not elaborate.

The Czech central bank (CNB) put IPB under forced administration
after a liquidity crisis caused by a run on deposits.

The CNB said the move also followed an auditor's report saying
that losses at IPB, the country's third-largest bank by assets,
would exceed equity.

The government has said losses at IPB would likely top 50 billion
crowns ($1.31 billion). The Securities Commission recommended
funds holding IPB stock to value it at zero.

The government and central bank had sharply criticized Nomura for
not boosting IPB's capital, despite urging it to do so, and for
what they said was an uncooperative approach in talks on selling
the bank without imposing CNB administration.

Local analysts have widely praised the deal for putting a rapid
end to a potentially destabilizing situation in the Czech
financial system.


INVESTICNI A POSTOVNI: Biggest Banking Failure Sparks Party Fury
-------------------------------------------
Financial Times  June 23, 2000

The Czech Republic's biggest banking collapse yesterday developed
into a full blown political crisis when the main opposition party
fiercely attacked the minority government's handling of the
affair.

The Civic Democratic party (ODS), which has kept the Social
Democrats in power since July 1998, yesterday issued a statement
accusing the government of participating in the "daylight
robbery" of Investicni a Postovni Banka (IPB).  

IPB, the country's third biggest bank, was taken over by the
central bank on Friday after suffering a run on deposits, and was
then sold on Monday to Ceskoslovenska Obchodni Banka, the fourth
biggest bank, creating one of the largest banks in central
Europe.

The ODS leadership said the government's unbelievable, cold
blooded and risky action would cost every Czech family Kcs25,000
(Dollars 670). It demanded a parliamentary probe and a
transparent tender for a future owner. The row coincides with a
crucial debate in the upper house today on a new election system,
which was part of the original co-operation agreement between the
ODS and the Social Democrats. Some ODS leaders have threatened to
bring the government down if Social Democrat senators make good
their threat to vote against the reforms, which are designed to
make it easier for larger parties to win majorities.
The government and central bank argue that quick action was
needed to prevent further damage to IPB and the whole banking
system.
Jan Mladek, deputy finance minister, said yesterday that initial
conservative estimates put the bank's net loss at Dollars 2bn,
most of which would have to be borne by the state. He said the
bank's shareholders - the largest of whom was Nomura Securities
of Japan - had failed to strengthen the bank's capital when
requested and would lose their entire investment.


VITKOVICE: Troubled Steelworks Files Settlement Proposal
-------------------------------------------
Reuters  June 23, 2000

Troubled Czech steelworks Vitkovice a.s. said on Thursday it had
filed a court settlement proposal in a bid to avoid bankruptcy.

But the company, which is defaulting on its one billion crown
bond issue maturing on Thursday, acknowledged that some of the
creditors who are owed some 15 billion crowns in total could
easily bring down the management's settlement effort.

"The settlement proposal does not mean the threat of bankruptcy
has been overcome," Chief Financial Officer Zdenek Smejkal told a
news conference.

Vitkovice offers bondholders 15 percent of the nominal value, and
other creditors between 10 and 65 percent with companies owed
small amounts getting higher proportions.

The association of pension funds, which together hold some 280
million crowns worth of the state-controlled company's bonds, has
threatened to file for bankruptcy if bondholders do not get a
better deal.

But the association's Vice-President Milan Kantor said on
Thursday it would lead more talks with the government, which owns
67 percent of the steelmill.

Under the settlement plan, creditors who choose not to sell off
their receivables will be offered government-guaranteed
convertible bonds which will pay 30 percent of the original
receivables in roughly two years


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D E N M A R K
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TIVOLI:  Scandinavian Tobacco Company Buys Controlling Stake
------------------------------
THE COPENHAGEN POST, June 21, 2000

Leading brewery Carlsberg sold a controlling stake in
Copenhagen's Tivoli amusement park Monday to the Scandinavian
Tobacco Company for DKK 308 million. Although most commentators
expressed approval that the deal ensures Tivoli will now remain
in Danish hands, some Carlsberg shareholders are claiming that
the price was too low.

According to CEO Flemming Lindel,v, the brewery had received
twenty serious offers since putting its 43.4% stake in the famous
amusement park up for sale last November. Ten of the offers were
from foreign corporations, Lindel,v stated, while refusing to say
whether any were for a higher price than that to be paid by the
tobacco giant.

"But the best buyer won," Lindel,v said, indicating that the
decision was based more on the qualities of the purchaser than on
the size of its wallet.

Scandinavian Tobacco, makers of leading domestic cigarette brands
Prince, Cecil, Kings and Look, is prepared to invest at least a
further DKK 175 million in the amusement park, on updating,
repairs and refurbishment.

"But basically guests should not be aware of any immediate
changes," Scandinavian Tobacco boss J,rgen Tandrup explained. "We
are making this purchase as a matter of social engagement, rather
than an immediate business return. For many years we have
sponsored for example the Royal Theatre, but that kind of
arrangement will no longer be possible after the forthcoming
introduction of a total ban on cigarette advertising. But we will
be holding a low profile. We will not be plastering the park with
tobacco ads."

The Carlsberg sale is part of a rationalisation plan intended to
focus brewery business on its primary beer and soft drinks
activities. Also to be sold is the company's stake in the Royal
Porcelain ceramic concern.

Following rumours of an impending sale, Tivoli stock - 8% of
which is owned by leading high street bank Den Danske Bank, and
the rest, apart from Carlsberg's 43.4%, by more or less small
shareholders - rose as high as DKK 1,950 per share last week.

Although the amusement park is currently operating at a loss,
analysts had previously predicted that because of a formidable
brand image, Tivoli would actually be worth much more.

The sale to Scandinavian Tobacco, however, valued shares at just
DKK 1,550 each.

"Nevertheless, this is a good deal for Carlsberg and a good deal
for Tivoli," Lindelv said.


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E S T O N I A
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EESTI TELEVISION: PwC's Action Could Lead to Bankruptcy
-------------------------------------------
BBC June 23, 2000, Friday

Tallinn, 19th June: The audit firm PriceWaterhouseCoopers (PwC)
has refused to sign the annual audit report of the public
television station Eesti Televisioon (ETV), which in the case of
a corporation would mean bankruptcy.

Aare Urm, chosen by the Broadcasting Council as new director-
general of the television company, said one of the reasons for
PwC's refusal may be that the equity capital of the ETV stands at
minus 10m kroons [0.61m dollars] instead of 45m kroons.  This
means the ETV is 55m kroons short, the 'Eesti Paevaleht'
reported.

The Estonian broadcasting law contains a provision allowing the
ETV to assume liabilities amounting to up to 10 per cent of its
annual budget. Given the ETV's 2000 current year's budget of 150m
kroons, the maximum of liabilities would be 15m kroons.

"ETV has obligations to the sum of 43m kroons and consequently
it's breaking the law," Urm told the daily, saying this could be
a second reason why the auditors won't sign the annual report.
Eva Veinberg, auditor of ETV in 1997 and 1998, told the paper she
has no information about the company's economic results in 1999.

The situation at ETV got totally out of hand last year, she
added.

An audit firm's refusal to sign the annual report of a
corporation, for example, would immediately come to the ears of
creditors who would launch bankruptcy proceedings.

Urm earlier said the state as the owner should find 33m kroons to
bail out the television company.

The newly selected director-general, who is scheduled to meet
with PwC representatives this week, has until 1st July to sign an
employment contract. If the auditors don't sign the annual report
Urm may give up the position, 'Eesti Paevaleht' reports.


ESTONIAN NEWS: To Liquidate Due to Heavy Losses
-------------------------------------------
BBC June 23, 2000, Friday

Tallinn, 22nd June: The owners of the news agency ETA that was
privatized at the end of last year will probably liquidate AS
Eesti Teadeteagentuur (Estonian News Agency Ltd) because of its
heavy losses; employees of the agency have already transferred to
AS ETA Interactive.

The Estonian News Agency director, Tarmo Hellat, said the company
would be liquidated due to its heavy losses unless an agreement
is reached with a potential investor by the end of the month.  

"Talks are in progress, but we cannot inform you of any results
today," Hellat told reporters today. "If there is no investor,
we'll do as dictated by law."

Last year the Estonian News Agency lost 10.1m kroons (607,000 US
dollars) on a turnover of 5.9m kroons and, in line with the
commercial code, must pass a decision on the company's future
operations by 30th June.

This January ETA signed a preliminary agreement for the sale of
50 per cent of its shares to the Latvian news agency LETA, but
the deal fell through and an investment from LETA did not
materialize.

Although no decision on ETA's liquidation has been made yet, all
employees have left the company by now and the Estonian News
Agency lacks any assets of its own, Hellat said.

Since April, the Tax Department has been seeking to cancel the
timetable for the tax arrears agreed upon ETA's privatization, as
ETA has failed to pay tax also for the current year. In April,
ETA owed the tax authority 4.28m kroons.


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G E R M A N Y
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COMMERZBANK: Bank Could Be Dismantled if Merger Try Fails
------------------------------
HANDELSBLATT, June 25, 2000

Commerzbank AG faces the prospect of being taken over by a group
of finance houses from southern Europe and dismantled if it fails
to seal a merger with Dresdner Bank AG, Handelsblatt has learned.

According to information obtained by Handelsblatt from well
informed circles, three institutes - Italian insurer Generali,
Italian bank Banca Intesa, and Spain's Banco Santander
Hispanoamericano (BSCH) - plan to take over Commerzbank and
divide it up among themselves. None of the three institutes was
available for comment.

Meanwhile, Commerzbank and Dresdner appear to be making real
progress in their merger talks. According to Handelsblatt
information, the two institutes have agreed on the rough outlines
of a joint strategy and are now starting talks on the structure
of a possible deal.

According to information from people within the German banking
sector, top-level talks are to be continued this week. Several
working groups are also said to be looking into a detailed
strategy for a full merger.

Generali, Intesa, and BSCH hold a combined stake of around 11% in
Commerzbank. Additionally, , Handelsblatt has learned, they have
been offered the 17% stake held by Commerzbank's largest single
shareholder, Cobra (the German arm of Dutch investment group
Rebon).

The three institutes had for some time been considering the
formation of a consortium to bid for Commerzbank. But none of
them had been willing to assume the leadership role. They would
now appear to be waiting to see how Commerzbank gets on in its
talks with Dresdner. But if these should fall through, or if they
appear to be dragging on for too long, "anything will be
possible", according to people consulted by Handelsblatt.

The situation is made all the more piquant by the fact that all
three institutes are part of a pan-European network of what
Commerzbank chief Martin Kohlhaussen has described as "partners
of choice", linked by cross-shareholdings. According to experts,
this network-based system has now outlived its usefulness.

In the past, Kohlhaussen has expressed the hope that
Commerzbank's European partners will support its attempts to
remain in one piece if it fails to pull off a merger with
Dresdner. These hopes look set to be dashed, since none of the
three southern European institutions would appear to be
interested in Commerzbank as a whole.

Generali, which is looking to expand in asset management, is said
to be eyeing Commerzbank's funds arm Adig. For Intesa, meanwhile,
Commerzbank's activities in investment banking are likely to be
of interest. In the view of observers, the German bank is
particularly strong in global markets and in equities trading and
is also one of the leading players in the attractive market for
debentures issues.

But it is direct-banking unit Comdirect that is seen as the real
pearl in the Commerzbank portfolio. In the event of a demerger,
observers see Comdirect going to BSCH. The Spanish giant is
already represented on the German direct-banking market with
Santander Direkt.

Clearly none of the three Mediterranean institutes is interested
in Commerzbank's activities in retail banking. Observers see
these being offered to Deutsche Bank's Bank 24 unit.

If the three institutes do come together to present a joint offer
for Commerzbank, this will be one of the first cross-border
takeovers seen by Europe's financial-services sector.

As an outcome, a joint bid by Generali, Intesa and BSCH is likely
to be more amenable to Cobra than a merger with Dresdner. Two
considerations would be likely to come into play here. First,
Cobra has always expressed a preference for a cross-border
solution for Commerzbank. Second, whereas a takeover bid would
allow it to realize a profit on its investment, a merger with
Dresdner would almost certainly not involve a cash settlement.

By contrast, Commerzbank chief Kohlhaussen is likely to see a
merger as the infinitely preferable option - especially since a
takeover is likely to lead to Commerzbank's dismantling.


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H U N G A R Y
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MOL: Higher Gas Prices To Mean Huge Losses for Hungarian Company
------------------------------
REUTERS, June 24, 2000

Hungarian oil group MOL said on Friday it would seek legal action
against a government decision to raise gas prices by only 12
percent as of July 1, a move seen causing huge losses to MOL's
gas business.

The government meanwhile said it was weighing the possibility of
buying MOL's gas business, as a way of ending the increasingly
bitter controversy.

"The Board of Directors of MOL has reviewed the gas pricing
decision of the Hungarian government and is of the opinion that
it is not in conformity with Hungarian law," MOL's board of
directors said in a statement following its meeting.

The board said it was disappointed with the decision, adding that
it cannot allow the regulated gas business to undermine the
profitability of the MOL group and shareholder value.

"Therefore the Board has decided to initiate the following
steps," it said. "A price revision process at the Hungarian
Energy Office; further legal actions to enforce the Company's
constitutional rights and allow a recovery of damages."

MOL shares fell about 10 percent this week due to Tuesday's
government decision, which led to the resignation of MOL Chairman
Janos Csak on Wednesday.

Analyst have said MOL would need a price hike of between 30 and
40 percent after rises in global gas prices.

MOL has said its losses in the gas business may reach 100 billion
forints ($362.6 million) at the imposed price levels.

The company said in the statement that its board also decided to
unbundled gas trading, transmission and storage operations into
independent firms fully owned by MOL.

"This latter step is in anticipation of a further liberalized gas
market in Hungary in full conformity with European Union
requirements, providing a maximum level of transparency," the
company said.

This plan is subject to regulatory approval and a decision by an
extraordinary shareholders meeting to be held before the end of
the year, MOL added.

Government spokesman Gabor Borokai was quoted by national news
agency MTI as saying that the government maintained a proposal
made to MOL months ago to buy its gas business.

He did not say how much the government was willing to offer, but
he said the government doubted that MOL's loss in gas business
could reach 100 billion forints.

"If this is a realistic figure, I don't see how it is possible
that MOL does not want to part with its gas business," Borokai
was quoted as saying.

The board did not elect a successor to Csak on Friday, but said
it would appoint a chairman who would carry on MOL's earlier
approved platform, including regional growth, and complement the
management team lead by CEO Gyorgy Mosonyi.

The new chairman has to be elected by a shareholders meeting if
the selected person is not a member of the board.


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R O M A N I A
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BANCA AGRICOLA:  Deadline Extended for Banca Agricola Bids
------------------------------
REUTERS, June 24, 2000

Romania has extended the deadline for binding bids in the selloff
of commercial bank Banca Agricola (BA) to early August following
requests by bidders, the bank president said on Friday.

Initially, investors had until Friday to submit such bids.

"The September 30 final term for the completion of the BA's sale
remains unchanged and the selloff process goes on," Eugen
Radulescu told Reuters in a telephone interview.

Privatisation of the bank, which underwent restructuring over the
past three years after revealing a poor portfolio, is a key
target under Romania's accords with international lenders.

Radulescu said a consortium including the Agricultural Bank of
Greece, Rabo International Advisory Services and the Romanian
American Enterprise Fund, had asked the BA's privatization
commission to extend the term to August 15 to give time to come
up with "an efficient and solid bid".

"There is an understanding that the deadline is extended to
August 8 but no further," he said.

Radulescu said the European Bank for Reconstruction and
Development had expressed willingness to give BA a convertible
loan. He gave no details of loan terms, but said its amount was
"significant".

"Banca Agricola needs a capital injection of $150 million to $200
million to operate efficiently," he said, adding that the state
would capitalize the bank ahead of selloff without supplying the
size of the inflow.

Earlier this year, Romania's main privatization agency, the FPS,
invited potential investors to bid for a majority stake in the
BA, offering its full stake at the time of selloff completion.

The FPS now has 56.5066 percent. Five local investment companies
(SIFs) hold a combined 26.84 percent in the bank and the rest
belongs to other investors.

STATE TO RAISE ITS BA STAKE

Radulescu said the SIFs had agreed this week to swap their BA
stakes for shares in other companies in the FPS portfolio.

The move might also make redundant a court appeal by one SIF -
holder of about five percent - against a shareholders' decision
earlier this year to cut BA share capital to 108 billion lei from
around one trillion.

Radulescu said the bank;'s staff had been reduced to about 3,500
from 6,700 last November and its network to 180 units from 207.

"Our daily losses dropped due to lower operational costs and
recouping of debts but they were not eliminated," he said
declining to give figures.

Earlier this year Radulescu had said losses had been cut to a
monthly average of 50 billion lei from 250-300 billion over
January-October 1999. The bank posted total losses of some three
trillion lei last year when it transferred around 3.7 trillion in
non-performing loans to a banking asset recouping agency.


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R U S S I A
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SIDANKO: Creditor Settlement Means no Dividends
-------------------------------------------
Interfax Russian News   June 23, 2000, Friday

At their annual meeting in Moscow on Thursday, shareholders in
Russian oil company Sidanko decided not to pay dividends for
1999, a source in the company's press service told Interfax.

This is due to the necessity of meeting conditions of an amicable
settlement with company creditors, reached in January this year,
the source said.

The press service noted that shareholders accounting for 97.8% of
voting shares in the company participated in the meeting.

Shareholders confirmed the annual report, the balance sheet and
the profit and loss accounts for 1999.

According to Sidanko President Robert Shepherd, company
management is faced with the strategic task of increasing the
company's market capitalization with stable production growth
while meeting obligations to partners, the budget system and the
regions where the company is active.

Shareholders elected a new 11-member board of directors, with
Interros General Director Dmitry Ushakov as director of the
board.

Russian oil company Sidanko had a net profit of 979.3 million
rubles in 1999, reversing a loss of 4.645 billion rubles in 1998,
company officials told Interfax.

The profit figures were confirmed by shareholders at their annual
meeting on Thursday.

Profit on sales totaled 584.2 million rubles in 1999 (compared
with 652.1 million rubles in 1998) on sales revenues totaled 6.59
billion rubles (12.8 billion rubles).

As reported earlier, the Moscow region Arbitration Court
confirmed an amicable settlement with Sidanko shareholders
(including BP Amoco) on January 28 and halted bankruptcy
proceedings against the company. The creditors' decision was
possible due to a preliminary agreement, signed on December 22
last year by shareholders in Sidanko and Tyumen Oil Company on
property ownership in Sidanko and its subsidiaries.

Interros owns 40% OF Sidanko shares.


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U K R A I N E
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LYNOS:  Creditor to Sue State Property Fund
------------------------------
KIEV POST, June 21, 2000

Ukreximnaftoprodukt petroleum trading company has announced it is
planning to sue the State Property Fund (SPF), the government's
privatization agency, for an 'illegal' sale of a stake in the
LyNOS oil refinery.

Ukreximnaftoprodukt argues that, as a result of the sale, the
company will lose millions of dollars in debt that LyNOS owes to
it. The SPF is filing a counter-suit.

Ukreximnaftoprodukt's chairman, Vitaly Ischenko, said his company
is preparing to file suit with the SPF for Hr 35 million in
damages Ukreximnaftoprodukt claims it will incur following the
fund's sale of a majority stake in LyNOS. Ischenko said
conditions of the tender for a 67 percent stake in LyNOS do not
stipulate that the buyer settles refinery's debts with creditors.

He said his company, LyNOS' creditor, will lose an estimated Hr
35 million as soon as the fund sells the refinery.

Oleksandr Olenchenko, Ukreximnaftoprodukt's deputy chairman, also
alleged the fund is asking a low price for the stake. Olenchenko
said the fund has set a starting price for a 67 percent stake in
LyNOS at Hr 48 million (less than $10 million), whereas the
company, with all of its debts, is reckoned to be worth $500
million. He also alleged the terms of the tender are specifically
designed to rule out a chance of a Ukrainian bidder participating
in the contest.

Analysts have persisted that conditions in the tender have been
rigged in favor of Russia's Tyumen Oil Company that has been
eyeing the stake in LyNOS.

The SPF has dismissed the allegations. In a June 15 statement the
fund said Ukraine's High Arbitration Court had for two years
studied a bankruptcy case initiated against LyNOS by its private
creditors. However, the court's head, Dmytro Prytyka, in April
this year canceled the court's earlier decision recognizing LyNOS
a bankrupt company. That cleared the way for the SPF to put the
refinery on the block, the statement read.

The SPF also alleged that Ukreximnaftoprodukt was actually hoping
to get the stake in LyNOS in payment for the company's debts.

'Don't sell the joint stock company [LyNOS], give it to us for
its debts,' read the fund's interpretation of
Ukreximnaftoprodukt's plans. The fund also hinted in the
statement that LyNOS' debt figure to Ukreximnaftoprodukt was
artificially inflated due to numerous penalty payments. The fund
said Ukreximnafatprodukt feared the new owner of LyNOS would
prove the illegitimacy of oil refinery's debt to the company.

The tender is scheduled for June 27.


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

GRAMPIAN HOLDINGS: Future Remains Uncertain
-------------------------------------------
The Sunday Times  June 25, 2000

GRAMPIAN HOLDINGS's future remains uncertain after Sir Donald
MacKay, chairman, said the review into its operations had still
not come to any firm conclusions.

The Glasgow-based company and Deutsche Bank, its adviser, have
been looking at ways forward for several months but have still to
decide which option to take.

MacKay said the board had considered various routes, including a
management buy-out or a sale of the two divisions - the Edinburgh
Woollen Mill shops and WH Malcolm haulage business - to a third
party.

But nothing has emerged from the discussions or from outside
interests to sway the board. There have been several tentative
offers but none matched the board's valuation of the company.

One option never seriously considered has been de-merger of the
two businesses into separate quoted companies, as they are too
small.

Another option, recommended by Thorold Mackie, an analyst at
Charterhouse Securities, is to sell the businesses and liquidate
the holding company. He argues the break-up value is 120p per
share against a current trading range of about 80p.

MacKay said neither the board nor its advisers was prepared to
put a price on the company at the moment.


ICM COMPUTER: The Company Has Nearly Halved in Value
-------------------------------------------
Birstall, England, June 23 (Bloomberg) -- ICM Computer Plc shares
fell a record 19.8 percent after the U.K. supplier of computer
services said profit for the year ending June 30 won't meet
forecasts.

The company's shares fell 107.5 pence to 435p. The company, which
is worth 82.7 million pounds ($124.5 million), has nearly halved
in value this year.

``There was a noticeable change in our trading environment during
the second quarter, where it became apparent that customers have
started to recognise the need to develop and implement strategies
that will embrace the new e-economy,'' the company said. As a
result, they've held back on investments.

It didn't say how much it expected to earn, or detail the size of
the shortfall.

Ray Burgum, an analyst at Henry Cooke Lumsden Plc, the company's
broker, said the company would report profit before tax of 4.45
million pounds. He had forecast a figure of 5 million, and
expects it to make 5 million pounds next year.

The West Yorkshire, Northern England-based company, which
provides technology consulting and emergency back-up services,
also said it spent on new staff in anticipation of new contracts
and skills requirements.

In 1999, profit before tax rose to 4.3 million pounds from 2.7
million pounds a year earlier. Net profit rose 54 percent to 2.88
million pounds.

The U.K. company also agreed to buy Altor Ltd., a provider of
software solutions and support services, for 2.5 million pounds
to expand its presence in the Scottish market.


INDEPENDENT ENERGY: From Bad to Worse, Faces LSE Probe
-------------------------------------------
The Street  June 20, 2000

Niche electricity and gas provider Independent Energy faces a
London Stock Exchange enquiry this morning after announcing that
one of the strategic options it is considering is the possibility
of a bid for the business.

The "clarifying statement" follows yesterday's warning that
billing problems with a substantial proportion of its customer
base have got worse, not better, in the past month. The company
said yesterday it is reviewing financial and strategic
alternatives as it tries to renegotiate its banking facilities,
but there was no mention of a possible bid - which would have
certainly limited the sell-off by investors.

News of the worsening billing situation, which last month caused
industry regulator Ofgem to ban it from signing up new customers
in the sub-100kW market, prompted a massive loss of confidence
among investors who rushed to sell the stock. The shares lost 62%
of their value by the close of trading, diving from ?12.47 to
just 472p.

Angry investors are today understood to be calling for an
investigation after the shares rebounded on the new statement. In
mid-morning trading they were up 51% to 715p. The Stock Exchange
would not comment on the shareholders' demands, but said it is
examining the two announcements made via its Regulatory News
Service to see if there has been any infringement of its rules.

Independent Energy defended the decision not to make the
situation quite so clear yesterday, but admitted it had only made
the further announcement today because no journalists or analysts
had identified that the company's strategic options could include
a bid.

A spokeswoman for the company rejected suggestions that it was
the company's responsibility to have made this clear yesterday:
"There was no need to put a statement out yesterday because there
is no offer on the table. However it was felt it should go out
today because no one picked up on the possibility of a bid."
Independent Energy is understood to have received several bid
approaches in the past few months, but no formal offer has been
made.

This is unlikely to pacify investors, many of whom are based in
the US, where the company has a secondary listing of American
Depositary Shares. US investors are likely to press the
Securities and Exchange Commission for an investigation into the
company's two announcements. It was an initial fall in the ADS's
on Tuesday that prompted yesterday's announcement - market
jitters in New York are believed to have resulted from the last
minute cancellation by chief executive John Sulley of an
appearance at a conference and his subsequent speedy return to
the UK. This, it has emerged, was for talks with the company's
bankers.


INSTITUTE OF EXPORT: Suffering a Financial Crisis
-------------------------------------------
The Sunday Times   June 25, 2000

THE Institute of Export, the public face of the export community
with members such as British Aerospace, NatWest bank and Rolls-
Royce, is suffering a financial crisis that may lead it to sell
its London home of more than 65 years.

The twin problems of the weakness of the euro and difficulties in
many export markets have forced members to cut their training
budgets paid to the institute, which sets the profession's exams.

A profit of almost ?200,000 in 1997 was reduced to a deficit of
?102,252 in 1998 and the weakness of the euro against the pound
since then will have taken its toll.

Ian Campbell, the institute's director-general, said: "It has
been tough for the last three years. We have cut the size of
staff and are trying to make more money out of what we are doing
but we have been refocusing on where we are going."

He said the charity was obliged to consider all options and was
meeting with trustees shortly to decide whether the building,
valued at ?398,000 in 1998, had to be sold. New office locations
are already under consideration.

The institute owns its offices and Campbell said it would be
worth more to the charity if they were sold.

The money could then be used to help develop a number of new
initiatives that will be launched in the coming months to develop
an online sourcing and training capability.

Two sites, a portal covering issues such as logistics, marketing,
importing and finance, and a directory of British exporters have
already been launched, while the unveiling of the "virtual
academy" is due in July.

A joint venture with Investors in Intellectual Capital and three
others will allow students to access study material online for a
fee of between ?10 and ?15 per subject.

Campbell insisted the institute was not going out of business,
but pleaded with industry to commit to training more students.


MMI:  Businessman denies debt rumours
------------------------------
THE SUNDAY BUSINESS POST, June 18, 2000

Businessman Tom Jones has strongly denied that he has any monies
still owing as a result of the liquidation of MMI stockbrokers.

"Everything was paid off a long time ago. I can categorically
deny that any monies are now owing," he said last week.

Jones was anxious to quash rumours that he was one of the debtors
still associated with the liquidation of MMI.

However, The Sunday Business Post has seen a revised repayment
schedule sent to Tim Murphy, former managing director of MMI and
Bob Holt, former chief executives of K & H Options in early
February 1999.

K & H helped to stabilise MMI with an injection of capital after
it hit payment difficulties in 1999 before it went into
liquidation in March last year because of liquidity problems.

In the note with the repayment schedule, Jones says that he would
not be able to handle all the payments in February 1999 and
proposed stretching the final payments from July to September.

His schedule also indicated substantial reductions on the
payments previously agreed for some of the months. The total in
the schedule amounted to ?977,339.

Jones is adamant that he has now settled his outstanding debts
and that there were no legal exchanges between him and his
creditors. Jones is a director of the Ireland Netinvest.com plc
which put off its launch on the AIM stock market via NCB
recently. According to Eoin O'Lideadha at NCB the flotation was
postponed due to the recent volatility in the stock market. The
broker remained confident that the flotation will go ahead and
the company will raise at least ?5 million and possibly as much
as ?20 million.

According to the prospectus for the postponed flotation Ireland
NetInvest has some substantial high profile backers John McKeon,
a financial advisor is down for a ?500,000 investment. Hoodless
Brennan, the British investment firm has taken a stake of
?25,000, Oceana Retail Holdings ?20,000 and Jones himself is
committed to ?500,00 worth. AIM quoted, Netvest which has
invested ?500,000 worth also specialises in high tech stock
investments and it plans to refer all Irish applications for
funds to Ireland Netinvest.

Some of Netvest's directors are also on the board of Ireland
Netinvest including Peter Catto. Catto has a long list of
directorships. The Environmental Measurement Company, Barucci
Holdings and Catto Animation (Holdings) went into liquidation in
recent years. But Catto had resigned from the board of Barucci
four months before it went into liquidation. Catto was also a
director of Maxcar which went into receivership.

The chairman of Ireland NetInvest, Gerard O'Mahony, formerly of
AIB Capital Markets, is buying for ?50,000 worth of shares.


ROCK 2000: Process of Winding Up
-------------------------------------------
Aberdeen Press and Journal   June 21, 2000

A SPEYSIDE ice-cube manufacturing firm has ceased trading. Rocks
2000, launched last December in the heart of malt whisky country,
is in the process of being wound up.  

It is understood the tiny firm - which sold spring water in
sealed ice cube trays and had attracted orders from throughout
Europe and employed two full-time staff - has left its base at
Braes of Glenlivet.

Rocks 2000 was launched as a successor to the Scotch Rocks firm,
originally based in Caithness, and set up by an Australian-
Scottish consortium in Berriedale. It relocated to Braes of
Glenlivet when the Caithness water failed to come up to tough
European and US standards.

Scotch Rocks ceased trading last October and is currently in
liquidation. However, investors felt that the idea should be kept
alive and the new firm, Rocks 2000, was started. This included
using equipment owned by Scotch Rocks, which Glasgow-based
liquidator Wylie and Bisset said would now be sold.

Earlier this year, Rocks 2000 scooped several honours at the
Grampian Food Awards, including one for best packaging and one
for most innovative product for a company with less than 25
employees.



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

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