/raid1/www/Hosts/bankrupt/TCREUR_Public/000721.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

            Thursday, July 21, 2000, Vol. 1, No. 53


                        Headlines

C Z E C H   R E P U B L I C

PRAZSKE VODOVODY: Government's Majority Stake up for Sale

F R A N C E

CALLATEX: Sulphuric Acid Spills Lead to Plant Closure


G E R M A N Y

COMMERZBANK: Launch Protection for Residential Mortgages


N E T H E R L A N D S

BAAN: Recent Drop Adds to Year-long Free Fall of 81 Percent
BAAN: Invensys Nearly Completes Purchase of ING Stake
BAAN: S&P May Change CCC-Plus Rating


R O M A N I A

ABATORUL: On Sale Block for the Third Time
MADEXIN: Liquidators Complete Asset Sale
PETROTUB ROMAN: Competition Council Refuses Privatization
POLIROM ROMAN: No Interest in Shuttered Firm
ROMANIAN COMMERCIAL: Government Changes Sale Requirements
TRAPS SA BOTOSANI: Heavily Indebted Company Confirmed as Sold
ZIMBRUL: Knitwear Factory Begins Reorganization


R U S S I A

AEROFLOT: Seeks to Overturn Order on Frozen Bank Accounts
LISICHANSK REFINKERY: Clears Sale to TNK
NORILSK NICKEL: Investors Fear Privatization Scandal
ONAKO OIL: State Tenders 85% of Shares
USSURISKY BALZAM: No Match for Cheap Vodka from Moscow


U N I T E D   K I N G D O M

3R MOBILE SOLUTIONS LTD:  Liquidation proceedings
A P P PRINT SERVICES LTD:  Liquidation proceedings
ACE RECRUITMENT LTD:  Liquidation proceedings
ADVANTAGE WINDOWS LTD:  Liquidation proceedings
ALPHA TELECOM:  Alpha Telecom in receivership

AQUA PROCESSING & DESIGN LTD:  Liquidation proceedings
BLATCHINGTON ENGINEERS LTD:  Liquidation proceedings
CARGOPROUD LTD:  Liquidation proceedings
DELTA 2000 LTD:  Liquidation proceedings
DIAGEO PLC: To Sell Its Subsidiary Pillsbury

DISTRIBUTION DYNAMICS LTD:  Liquidation proceedings
ENVIRONMENTAL MANAGEMENT SERV (NI) LTD:  Liquidation proceedings
EUROPEAN TECHNOLOGY GROUP LTD:  Liquidation proceedings
FLIGHT CO (UK) PLC THE:  Liquidation proceedings
FRONTIER SYSTEMS INNOVATIONS LTD:  Liquidation proceedings

G K WASTE LTD:  Liquidation proceedings
GLOBAL MANAGED SOLUTIONS LTD:  Liquidation proceedings
HAVENCORP LTD:  Liquidation proceedings
HOGANS BUILDING CONTRACTORS LTD:  Liquidation proceedings
INRECO LTD:  Liquidation proceedings

J P L LTD:  Liquidation proceedings
LICENSED PREMISES SIGN CO LTD:  Liquidation proceedings
MIDICY LTD:  Liquidation proceedings
PF2 CO UK LTD:  Liquidation proceedings
POPE (UK) LTD:  Liquidation proceedings

QUOTEBACK LTD:  Liquidation proceedings
R S B (PLANT HIRE & SALES) LTD:  Liquidation proceedings
RACE SERVICES (1984) LTD:  Liquidation proceedings
S W VIAN LTD:  Liquidation proceedings
STREAMACTION LTD:  Liquidation proceedings

TEMPS SELECT (BIRMINGHAN) LTD:  Liquidation proceedings
TRANSPORT & VEHICLE SERVICES LTD:  Liquidation proceedings
VALESTONE LTD:  Liquidation proceedings
VISTAGOLD DESIGNS LTD:  Liquidation proceedings
WESGT MERCHANT BANK HOLDIGNS LTD:  Liquidation proceedings

ZCCM (UK) LTD:  Liquidation proceedings


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

PRAZSKE VODOVODY: Government's Majority Stake up for Sale
----------------------------
Daily Deal July 17, 2000

PRAGUE - The Czech government's sale of a majority slice in
Prague's water administrator could raise up to Kcs3 billion
($78.9 million)--more that three times the official starting
price, according to Vivendi Water SA, one of the company' s prime
suitors.

The National Property Fund, the government department overseeing
the sell off of communist-era assets, last week called a public
tender for the sale of a 66% stake in the 100% state-owned
Prazske Vodovody a Kanalizace water and sewage company. The
initial minimum price of Kcs721 million represents a per share
price of Kcs1,379 per share, or a 38% premium to par value.

But given that PVK is potentially one of the juiciest of a slew
of water and energy utilities about to come under the
privatization hammer, most observers saw the official benchmark
as laughably low.

"Well that's the official starting price, but I see the winning
bid going as high as Kcs3 billion," said Vivendi Water CEO
Philippe Guitard. "There's no doubt [PVK] can be turned around
into a very good business, but apart from that, there's the
prestige of serving the capital."

Guitard added that as part of his company's bid, Vivendi Water
would offer several million dollars to refurbish PVK's decrepit
distribution network. PVK, the country's largest water
distributor, supplies water to about 1.4 million residents of
Prague and its surroundings. But its hidden leaks and water
losses reach up to 40%, whereas the maximum limit in Western
Europe is 15%.


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

CALLATEX: Sulphuric Acid Spills Lead to Plant Closure
---------------------
FINANCIAL TIMES July 18,2000

GIVET, France (AFP) - - A draft agreement was reached early
Thursday between government officials and workers at a synthetic
fibre factory in northern France who spilled sulphuric acid into
the water system to protest against the plant's closure.

The 153 workers at the Cellatex factory in the town of Givet on
the Belgian border were offered 80,000 francs (12,000 euros) as
part of a redundancy package, and salaries paid for the next 24
months.

The loss-making factory was declared bankrupt on July 5, and the
protesters repeatedly threatened to blow up the chemicals stored
inside -- sulphuric acid, carbon bisulphide and industrial soda

However on Wednesday they played down Tuesday's spillage, which
drew international publicity, saying it had been carefully
controlled so as not to go beyond a side-channel into the river
Meuse.

After the negotiations, which started late Wednesday, the workers
were meeting to consider the package. They were expected to
approve it late Thursday or early Friday


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

COMMERZBANK: Launch Protection for Residential Mortgages
--------------------------------
FINANCIAL NEWS - July 17, 2000

Commerzbank's fledgling bonds group this week expected to launch
one of Europe's largest-ever securitisations of residential
mortgages.

The majority of the ?2.5bn ($2.38bn) transaction, which is being
assembled on behalf of the investment bank's German parent, is
likely to be privately placed with investors by midweek, a senior
source confirmed last Friday.

The transaction will pip a rival deal by UK home loans arranger
Abbey National, which is putting the final touches to a similar
deal, through which it hopes to raise around ?2.2bn.

Insiders will be hoping that Commerzbank's flagship deal will
herald the dawn of a new era for the fixed income group.

Plagued by political in-fighting and a string of unrelated
trading losses which finally prompted the resignation of bonds
head Regis Fraisse in December last year, the business is
currently undergoing something of a rebirth at the hands of Marc
Bajer and Roman Schmidt.

The highly successful pair resurfaced at the bank earlier this
year after glittering careers at Barclays Capital.

Bajer and Schmidt are already understood to have won mandates to
arrange another three securitisations for continental European
clients off the back of the deal, even though a single bond has
yet to be sold.

Meanwhile, Abbey National gave its own unequivocal backing to the
market last week, when it said that it would in future raise
'several billion pounds a year' through mortgage securitisations.

The UK's second largest lender has hired Schroder Salomon Smith
Barney to arrange a deal which will see it repackage bundles of
mortgages into bonds denominated in sterling, dollars and yen.

Once the deal is completed, around 7% of the bank's ?65bn
mortgage book will have been securitised.


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

BAAN: Recent Drop Adds to Year-long Free Fall of 81 Percent
------------------------
BLOOMBERG July 18,2000

Baan NV fell 0.07 euro, or 2.7 percent, to 2.5. The Dutch
software maker restated and increased its 1999 loss by 7.3
percent to $310 million and said it won't survive without
additional financing or a takeover. The company's shares have
fallen 81 percent so far this year.


BAAN: Invensys Nearly Completes Purchase of ING Stake
---------------------------------------
FINANCIAL TIMES: July 19,2000

Invensys, the UK automation and controls group, on Wednesday took
a large step towards completing its acquisition of Baan when ING,
the Dutch financial institution, agreed to tender its 5.9 per
cent stake.

The bank - the last big shareholder blocking Invensys's path to
the ailing Dutch software company - acted after reading Baan's
1999 audited annual report, released on Monday. It made it clear
Baan was unlikely to survive should the E762m ($700m) Invensys
offer fail.

ING said it believed the Invensys bid was reasonable. Baan shares
gained 6.13 per cent to E2.77 on the news.

Invensys said it hoped that would prove the key to concluding the
deal, which needs 95 per cent shareholder backing to proceed. It
had extended its offer deadline to July 25 after having secured
only 58 per cent of Baan shares within the initial tender period.
An Invensys adviser said the ING decision "carries an important
message for other shareholders who might be considering their
position".

ING will receive about Fl 100m (?28m) for its stake. It would not
divulge how big a loss it would make on its initial investment
but it is understood to be about Fl 700m, about 80 per cent of
what it paid for its estimated 15.8m shares.

"The consequences will be entirely accounted for in the second
quarter but will not lead to an adjustment of previously stated
expectations regarding the result of ING group," the bank said.

ING added: "As a bigger investor we tend to wait until we have
the full picture and all the information and that is what has
happened." The last obstacle to Invensys is Ernst Sonneveldt.
But, because the Amsterdam businessman refuses to name the 22
shareholders he claims to represent, little credibility has been
attached to his cause.


BAAN: S&P May Change CCC-Plus Rating
----------------------------------
REUTERS COMPANY NEWS July 18, 2000

Standard & Poor's today revised to developing from positive the
CreditWatch implications on business-management software company
Baan Co. N.V.'s triple-'C'-plus long-term corporate credit and
triple-'C'-minus subordinated debt ratings.

Baan's ratings had been placed on CreditWatch with positive
implications on June 1, 2000, following the announcement by
automation and control group Invensys PLC (A+/Stable/A-1) of its
plan to acquire Baan for about US$1.2 billion, including assumed
debt, upcoming restructuring costs, and asset write-downs.

The change in Baan's CreditWatch status reflects Standard &
Poor's increasing concerns that Invensys may withdraw its offer
given the lack of support for the acquisition from some of Baan's
shareholders, representing up to 26% of Baan's capital.

According to latest market rumours, the ING Group could be
reluctant to bring its 5.9% stake to Invensys' offer. Although
Invensys has extended its tender offer through July 25, 2000,
Standard & Poor's believes that the risk of a bid withdrawal is
significant, which would result in a dire near-term financial
position for Baan.

If the acquisition goes through, however, the rating on Baan's
convertible subordinated notes would be raised to 'A', one notch
below Invensys' corporate credit rating.

Virginia-, U.S.-, and Netherlands-based Baan provides software in
highly competitive segments such as enterprise resource planning,
customer relationship management, supply chain management, and e-
business.

Over the past two years, the sharp decrease in revenues from
software licenses, repeated management turnover, and intense
restructuring have significantly impaired the company's business
and financial profile as well as its ability to attract and
retain customers.

Baan posted a net loss of US$289 million in 1999 and a loss of
US$25 million in first-quarter 2000. Shareholders' equity
decreased to US$9 million at end-March 2000, and near-term
liquidity is considerably challenged by the company's restricted
access to financial sources, Standard & Poor's said.


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

ABATORUL: On Sale Block for the Third Time
----------------------
Privatization in Romania  July 19, 2000

One of the most important units of the district, Abatorul, former
IRIC, is preparing for privatization. The State Ownership Fund
(SOF) will try to sell at the end of the month the share stock
owned at the company, that is 80.44% of the share capital. The
documents for the sale have already been drafted.

The company administrator, Constantin Hutupas, installed in
function since February, feels that the privatization is the only
solution. In the last few years, Abatorul cumulated many debts.

Despite the fact that the unit applied two reorganization
programs, it continued to cumulate debts, their level amounting
to approximately 9 billion ROL. At the end of last year, Abatorul
had debts of 898 million ROL, at a turnover of 7.7 billion ROL.

In 1999, Abatorul produced 100 tones of meat products amounted to
2.29 billion ROL, using 58 employees. Hutupas says that the
biggest mistake is that no assets have been sold.

Presently, Abatorul produces 20 tones of meat products per month,
a quantity insufficient for the demand. The problem is the raw
material, which is acquired, in small quantities, only from
natural entities.
Hutupas says that the future investor will have to insure the raw
material.

This is the third time that the SOF tries the privatization of
Abatorul.


MADEXIN: Liquidators Complete Asset Sale
------------------
PRIVATIZATION IN ROMANIA  July 19, 2000

The liquidators of Madexin managed to get 1.2 billion ROL from
the sale of the company's assets. The debts of the company amount
to more than 22 billion ROL. In the first part of next year
Madexin will meet the deadline established by the current
legislation concerning the finalization of the liquidation
process. The representative of Exconta, the liquidating company
of Madexin, Victor Padurariu, said that the assets sale was a
very difficult process. Few bidders took part in the weekly
auctions organized for the assets sale, so the liquidator will
pass to direct negotiation. The experts estimated the total value
of the assets to 33 billion ROL.

If the 22 billion ROL can be recovered in order to pay the
company's debts, the remainder will be distributed to the
shareholders that still hold shares after the summoning of an
extraordinary Shareholders General Assembly, which might decide
the creation of a new company with the same name. "I think it
would be a good thing if we managed to pay the debts to the
Romanian Commercial Bank (RCB), Banckoop, the Department of
Labour and Social Protection, the Health Insurance Office, the
Finance Department and Electrica, which are the main creditors.

We have some bids from some companies from Botosani, which are
willing to buy buildings and fields, but they expect the
liquidating company to lessen the prices. The only possibility to
render the company efficient again is an investment of some
billion ROL", Padurariu said. He added that, according to the
estimations made by his team, the company would be entirely sold
by autumn.


PETROTUB ROMAN: Competition Council Refuses Privatization
--------------------------
PRIVATIZATION IN ROMANIA  July 19, 2000

Tubman International disputed in court the decision of the
Competition Council. The two parties have to wait for the end of
the recess.

This week Tubman International submitted a complaint to the
Bucharest Court of Appeal, contesting the refusal of the
Competition Council (CC) to approve its taking over Petrotub
Roman. One month ago, the CC rejected privatization of Petrotub
arguing that Tubman would get to hold a 75% quote on the Romanian
pipe market, this leading to a dominant position it might abuse
of. This is the first case when the CC does not approve a
privatization process, invoking the monopoly thus created.

Even though very disputed at their time, the privatization
processes for Dacia Pitesti and for the cement industry
eventually received the approval of the CC, with a few
amendments. The new owners committed to respect certain norms
imposed by the CC, so as the monopoly obtained through these
privatization processes would not affect the competition
environment on the Romanian market.

The head of the State Ownership Fund (SOF), Radu Sirbu,
underlined the fact that Petrotub risks to enter a liquidation
process if the CC does not alter its decision and if the contract
with Tubman is canceled. The situation of Petrotub is still
uncertain until the end of the recess.


POLIROM ROMAN: No Interest in Shuttered Firm
-------------------------
Privatization in Romania  July 19, 2000

No investor attended the last auction. The State Ownership Fund
(SOF) received no bid for the privatization of Polirom Roman, the
deadline for submitting bids being July 4th. Even though it bought
the task book, the Romanian American Company Nicoren Group gave
up the purchase of the 70% stock on account of the debts, which
are too big. Nicoren Group took over Bere Lichior Margineni and
Vinalcool Bacau. It also expressed its intention to take over
Letea Bacau and Stofe Buhusi. The share capital of Polirom is of
122 billion ROL.

The price solicited by the SOF was of 85.4 billion ROL. "Nicoren
was interested in taking over only the Lycra thread machine and
thinks that the whole taking over is not advantageous, because of
the big debts to the budget and to various banks, which amount to
almost 200 billion ROL. Beside the price of the shares, the
investor would have to pay the debts and to make big
modernization investments", said George Gavrilescu, vice-manager
of Nicoren Group. At the moment, only 58 employees are still
working at Polirom, for the watch and the preservation of the
tools. Polirom ceased activity in 1998, when 1,300 employees were
dismissed.


ROMANIAN COMMERCIAL: Government Changes Sale Requirements
---------------------------------
PRIVATIZATION IN ROMANIA  July 19, 2000

The government modified on July 13th the privatization commissions
for the Romanian Commercial Bank (BCR), Banc Post and the
Agricultural Bank (AB). Through a government decision, Radu
Munteanu and Gyongyi Simion were appointed at the BCR as
representatives of the National Agency for Development. The bank
will have to be privatized in September, the earliest and by July
18th the consortium designed to offer consulting must hand in the
final form of the feasibility study.

Mihai Darie and Sorin Nistor were appointed at Banc Post on
behalf of the National Agency for Regional Development. The State
Ownership Fund (SOF) sold to General Electric Capital Corporation
35% of the shares of the bank, to Banco Portugues de
Investimiento 10% and to the Employees Associations owns 8%,
while the 5 Financial Investment Companies own 30%. The Fund
holds another 17% of the bank's shares. General Electric Capital
Corporation will cede by July 20th a part of the shares owned to
the Greek bank, EFG Eurobank.

Eugen Pavel was appointed at the AB as representative of the
National Agency for Regional Development. The bank is in full
privatization process, the deadline for the handing in of the
final offers being August 8th. The consortium formed by the Greek
Agricultural Bank, the Romanian-American Investment Fund and Rabo
International Advisory Services, the management branch of
Rabobank Holland showed to be interested in the privatization.

The members of the privatization commissions can't be
administrators or members in the special surveillance commissions
before the passing of a 3-year period from the cession of their
position. Also, they cannot be special administrator or members
in the committees of the banks or of the branches of the banks
that were privatized; they cannot be involved in any activity of
those banks.


TRAPS SA BOTOSANI: Heavily Indebted Company Confirmed as Sold
--------------------------
PRIVATIZATION IN ROMANIA July 19, 2000

One of the companies from Botosani, which was proposed to
liquidation by the State Ownership Fund (SOF) because the debts
exceed by far the value of the assets, was privatized on March
10th. There is another company in the Botosani SOF portfolio,
which has been undergoing a liquidation procedure for 2 months.

Traps SA Botosani, dealing with person transport, was privatized
on March 10th, announced the Botosani SOF manager, Emilian Popa.
He admitted that the company had large debts and that the SOF has
wanted to privatize the company for two years now. Popa said that
the 82,369 shares were purchased at the auction for 412 million
ROL, by a company from Botosani, whose name will be made public
after the signing of the sale-purchase contract. He mentioned
that the share price decreased from the nominal value of 25,000
ROL to 5,000 ROL, and the share stock was sold for the first
price of the auction.

Emilian Popa also said that the second company included on the
SOF list, Fast Trading company, where the SOF holds 10% of the
shares, begun the liquidation process two months ago.


ZIMBRUL: Knitwear Factory Begins Reorganization
--------------------
PRIVATIZATION IN ROMANIA July 19, 2000

>From June 15th, the knitwear factory enters the reorganization
program that was already approved by the National Agency for
Regional Development.

The knitwear factory, Zimbrul, continues to make efforts for the
avoiding of the bankruptcy. Starting with June 15th the factory
renters the reorganization program, which was already approved by
the National Agency for Regional Development (NARD). According to
the program, which was drafted by the administration and approved
by the Shareholders General Assembly (AGA), 259 employees will be
fired, only 187 following to remain in the factory.

The dismissed staff will benefit form compensatory wages
according to the Ordinance 98/99. The reorganization program was
agreed by the union. The leader, Mihai Stefan was skeptical about
its efficiency, considering the experience of the first
reorganization program from last year.

"We had to support the second reorganization program presented by
the administration. I doubt, though, that Zimbrul will recover
because the company never lacks orders, only liquidities", Stefan
added. Zimbrul has debts of over 40 billion ROL. The main
shareholder, George Simion, who owns 46.2% from the share
capital, paid the counter value of these shares, but he seems to
be unable to support the activity of the company.

On June 2nd there will be carried out discussions between the
management and the union in order to find a solution for the
people to receive their wages for the period when the factory
didn't produce.


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R U S S I A
===========

AEROFLOT: Seeks to Overturn Order on Frozen Bank Accounts
---------------------------
INTERCON  July 19, 2000

Investigators questioned Russian business tycoon Boris BEREZOVSKY
for two hours on Friday in connections with a case against
Aeroflot. BEREZOVSKY's business empire stretches from media
outlets to aluminum to oil. Nikolai VOLKOV, an investigator for
the Prosecutor General is expected to fly to Geneva on July 26th
to obtain 200 out of about 600 files relating to the case from
the Swiss Federal Prosecutor's Office. Swiss companies Forus and
Andava, are suspected to have been used to channel USD400 million
to USD600 million of the Russian national airline's money abroad.

BEREZOVSKY, who was questioned by VOLKOV, was temporarily a
suspect in this case, but charges against him were later dropped
and he is now a witness in the case. BEREZOVSKY controls only
about 2 percent of the airline's shares.

Switzerland is handing over the documents in line with a ruling
by the country's highest court last month, which cleared the way
for the government to provide legal assistance to Russia. The
Swiss Federal Tribunal rejected appeals from two Swiss-based
companies and six unnamed persons against releasing the documents
to Moscow.

Aeroflot has denied any wrongdoing. The two Lausanne-based
companies have also been seeking to overturn a freeze on their
bank accounts. Swiss authorities have not said how much money
they have frozen in connection with the affair.


LISICHANSK REFINKERY: Clears Sale to TNK
-------------------------------
Troika Dialog  July 19, 2000

The Ukrainian Antimonopoly Committee has cleared the sale of
67.41% of Lisichansk Refinery (LiNOS) to TNK. LiNOS is the most
modern refinery in the CIS, with the highest refining capacity,
360 kbpd (18 mt/y). TNK paid UAH53.1 mln (USD10 mln). Total
investment obligations are UAH400 mln (USD74 mln). The greater
part of this (USD57 mln) accounts for repayment of the defaulted
West LB loan. TNK should be able to pay around USD1.2 p/bbl of
LiNOS' refining capacity assuming that it will be able to
restructure West LB's loan and have it repaid out of LiNOS own
cashflows. This price compares favorably with the average USD2.1
p/bbl of design capacity, paid by LUKoil for the acquisition of
its refineries in Ukraine, Bulgaria and Romania.


NORILSK NICKEL: Investors Fear Privatization Scandal
------------------------------
THE MOSCOW TIMES July 18, 2000

The privatization scandal surrounding metals giant Norilsk Nickel
may scare off investors who already face a culture of secrecy at
the plant, Norilsk's head said in an interview published Tuesday.

The prosecutor general recently told Vladimir Potanin, a
businessman whose financial interests bought Norilsk in the mid-
1990s, that he had paid too little for the plant, and if he paid
an additional $140 million no further action would be taken.

Potanin replied by saying if the prosecutor felt he had a case,
he should pursue it in accordance with the law.

The conflict has pushed down the share price of Norilsk, the
world's largest producer of nickel and palladium and a key
producer of platinum, cobalt and other metals.

"The economic consequences are obvious," Norilsk General Director
Alexander Khloponin said in an interview published in the daily
newspaper Izvestiya.

"The share price of Norilsk has already fallen over two weeks
from $10 to $7....An unstable situation arises and immediately
the investment climate worsens."

"We need to invest $3.5 billion to modernize production and a
further $1 billion to develop it so we are not just a raw
materials appendage but a supplier of finished goods," he added.

"But for this we need investors. And they're mainly interested in
two things: the structure of the capital, that is, who owns the
plant, and the...transparency of financial and trade flows.

"We've always had some problems with the second issue, because
information on nickel and platinum group metals is a state
secret. But now the principal question has become the issue of
ownership itself."

He added that creditors who had previously trusted Norilsk were
now demanding metal as collateral for their loans, which
threatened the company's ability to play a leading role in the
markets in which it operated.

"This scandal is not in the interests of the state itself," he
said.


ONAKO OIL: State Tenders 85% of Shares
---------------------------
RosBusinessConsulting  July 18, 2000

Investment conditions for selling 85% of the shares in the ONAKO
oil company will be symbolic, and will be either 150,000 rubles
(about USD5,390) or USD50,000, given the initial price of the
parcel of shares of USD400 million. A representative of the State
Property Ministry Press Service told RBC.

A meeting to set the date of the tender and the final price of
328.036 million state-owned common shares in ONAKO will be held
tomorrow. Presumably, the tender will be held as soon as this
week, the representative of the Press Service underlined. State
Property Minister Farit Gazizullin said earlier that in fact, the
company would be sold at an auction, although a tender with
investment conditions will be announced, because in accordance
with the law, a parcel of over 51% of the shares cannot be sold
at an auction.


USSURISKY BALZAM: No Match for Cheap Vodka from Moscow
---------------------------------------
VLADIVOSTOK NEWS July 14, 2000

Enormous shipments of cheap vodka from the Moscow region have
ground to a halt production at one of Primorye's largest tax
payers, a vodka and liquor company in Ussurisk.

Ussurisky Balzam has not endured the competition and lowered
output at its main plant in Ussurisk and ceased production at a
daughter plant in Vladivostok for all last week.

The crisis has even made the company say that it is the criminal
lords that capitalize on the cheap vodka ignoring local
producers.

"The criminal underworld has fully captured the alcohol market of
Primorye," it said in a statement last week.

But Primorye officials say that the cause of the company's crisis
is the free market and violation of laws by other regions.

Ussurisky Balzam made more expensive vodka because it had to
bring quality water for the drink from Lesozavodsk, more than a
hundred kilometers away.

Another problem is that the Moscow region has a local law that
exempts vodka producers from excise duty. The law runs counter to
the federal legislation, said Nikolay Rozhkov, deputy chairman of
Primorye's food industry committee. But it gives the companies
there a large edge over their competitors in other regions.

Some provinces, such as the nearby Khabarovsk region, passed
similar illegal laws to protect their vodka businesses. But the
Primorye administration has turned down such a law.

Last year, the volume of vodka brought in from outside Primorye
averaged 14 percent, Novosti reported. This year, it grew up to
92 percent.

In the six months since the start of 2000, Primorye wholesalers
brought in 6.7 million liters of vodka from the Moscow region,
Rozhkov said.

The growth is set to hurt the regional budget as Ussurisky Balzam
was the third largest taxpayer last year paying 470 million
rubles ($16 million).

The payments to the coffers appeared steady in the first quarter
of 2000, equaling 107 million rubles. But last week's stoppage
and a drop in sales should send company's revenues downward, it
said.


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U N I T E D   K I N G D O M
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3R MOBILE SOLUTIONS LTD:  Liquidation proceedings
-------------------------------
Company Name:   3R Mobile Solutions Ltd
Company No:   3580491
Com. Business:   Mobile Telephone Sellers
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Members
Liquidators:   Philip Beck  IPno: 8720    
Firm Name:   P A Beck
Address:   41 Kingston Street
City Postcode:   Cambridge  CB1 2NU


A P P PRINT SERVICES LTD:  Liquidation proceedings
-------------------------------
Company Name:   A P P Print Services Ltd
Com. Business:   Commercial Printers
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Steven G Taylor  IPno: 7953    
Firm Name:   Poppleton & Appleby
Address:   4 Charterhouse Square
City Postcode:   London  EC1M 6EN


ACE RECRUITMENT LTD:  Liquidation proceedings
-------------------------------
Company Name:   Ace Recruitment Ltd
Company No:   2820550
Com. Business:   Recruitment
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   A H Tomlinson  IPno: 6585    
Firm Name:   A H Tomlinson & Co
Address:   St Johns Court  72 Gartside Street
City Postcode:   Manchester  M3 3EL


ADVANTAGE WINDOWS LTD:  Liquidation proceedings
-------------------------------
Company Name:   Advantage Windows Ltd
Previous Name:   Dab Construction Ltd
Company No:   1899603
Com. Business:   Supply/Install Double Glazing
Appointed on:   21/06/00
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


ALPHA TELECOM:  Alpha Telecom in receivership
-----------------------
The Times  July 20, 2000

Alpha Telecom, the discount calls company that in March outlined
plans for a ?200 million flotation, has been put into
receivership owing more than ?20 million. Receivers from Deloitte
& Touche are already in advanced talks with a possible purchaser.


AQUA PROCESSING & DESIGN LTD:  Liquidation proceedings
-------------------------------
Company Name:   Aqua Processing & Design Ltd
Company No:   2649004
Com. Business:   Mechanical/Electrical Contractors
Appointed on:   21/06/00
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


BLATCHINGTON ENGINEERS LTD:  Liquidation proceedings
-------------------------------
Company Name:   Blatchington Engineers Ltd
Company No:   3226777
Com. Business:   Electrical Engineers
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Carl S Jackson  IPno: 8860  Michael R Matthews  
2228
Firm Name:   BKL Weeks Green
Address:   Highfield Court  Tollgate
City Postcode:   Chandlers Ford  SO53 3TZ


CARGOPROUD LTD:  Liquidation proceedings
-------------------------------
Company Name:   Cargoproud Ltd
Company No:   3015527
Com. Business:   Trading in Cars/Spare Parts
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Paul M McConnell  IPno: 7802    
Firm Name:   Monahans Ledbury Martin
Address:   38-42 Newport Street
City Postcode:   Swindon  SN1 3DR


DELTA 2000 LTD:  Liquidation proceedings
-------------------------------
Company Name:   Delta 2000 Ltd
Company No:   3668052
Com. Business:   Private Taxi Business
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Tyrone S Courtman  IPno: 7237  Shaun N Adams  8568
Firm Name:   Cooper-Parry
Address:   56 High Pavement
City Postcode:   Nottingham  NG1 1HX


DIAGEO PLC: To Sale Its Subsidiary Pillsbury
---------------------
Daily Deal  July 17, 2000

LONDON - Having shed Pillsbury Co. and emerged with $5.1 billion
less debt, the new Diageo plc is likely to lose no time in
snapping up liquor brands, analysts said Monday.

The world's largest spirits maker will probably start its
shopping trip in Canada, at Seagram Co. The Canadian company is
merging with French media and utilities company Vivendi SA, which
considers Seagram's drinks division to be "nonstrategic."

While antitrust restrictions would preclude a full bid for
Seagram, Paul Walsh, Diageo's incoming CEO, told journalists
Monday that Captain Morgan rum and other Seagram brands had
caught his attention. He declined to elaborate.

"We could see some movement pretty soon," said Nigel Davies, an
analyst at Robert Fleming Securities in London. "Everyone is
looking at Seagram but the General Mills deal will make it easier
for Diageo to convince them that it is serious."

On Monday, Diageo agreed to sell its Pillsbury subsidiary to
General Mills Inc. for $5.35 billion in stock, plus $5.1 billion
in Pillsbury debt.

Seagram's spirits and wines division had Ebitda last year of $684
million and sales of $4.8 billion. Financial figures for its
individual brands were not available, but analysts said Diageo
would have to pay about $750 million for Captain Morgan alone.

Other Seagram brands Diageo is likely to pursue include Martell
cognac, and Absolut vodka - which the Canadian company makes
under license from Sweden's V&S Vin & Sprit AB.

Walsh may also be sniffing Seagram's wine business. He said
Monday he would like to acquire Chilean, New Zealand, Australian
and American wines.

Competition issues, however, would probably prevent Diageo from
snapping up Seagram's Chivas Regal whisky, Seagram's gin or the
Don Julio Tequila brand, analysts said.

Whatever its targets, Diageo will face tough competition, with
Allied Domecq plc likely to put up a good fight. Diageo's British
rival, the world's second-ranked spirits maker, is under pressure
to find a partner, having spent more than two years on the hunt.
Diageo must act quickly.

"We will see Diageo move in a month, month and a half," said
Michael Bleakley, an analyst at Credit Suisse First Boston in
London. "What they can't spend, they will return to
shareholders."


DISTRIBUTION DYNAMICS LTD:  Liquidation proceedings
-------------------------------
Company Name:   Distribution Dynamics Ltd
Company No:   2659806
Com. Business:   Television Production
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Richard A Hopper  IPno: 8028    
Firm Name:   Haslers
Address:   Johnston House  Johnston Road
City Postcode:   Woodford Green  IG8 0XA


ENVIRONMENTAL MANAGEMENT SERV (NI) LTD:  Liquidation proceedings
-------------------------------
Company Name:   Environmental Management Serv (NI) Ltd
Company No:   NI34506
Com. Business:   Mechanical/Electrical Contractors
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors
Liquidators:   J D Lynchehaun  IPno:     
Firm Name:   Malone Lynchehaun
Address:   12 New Street
City Postcode:   Newry  BT35 6JD


EUROPEAN TECHNOLOGY GROUP LTD:  Liquidation proceedings
-------------------------------
Company Name:   European Technology Group Ltd
Company No:   2953086
Com. Business:   Computer Equipment Suppliers
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Melvyn L Rose  IPno: 2561    
Firm Name:   Elliot Woolfe & Rose
Address:   Premier House  112 Station Road
City Postcode:   Edgware  HA8 7TT


FLIGHT CO (UK) PLC THE:  Liquidation proceedings
-------------------------------
Company Name:   Flight Co (UK) Plc - The
Company No:   2491731
Com. Business:   Travel Agents
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   David J Waterhouse  IPno: 5732  Ian C Oakley Smith  
2000
Firm Name:   PricewaterhouseCoopers
Address:   Plumtree Court
City Postcode:   London  EC4A 4HT


FRONTIER SYSTEMS INNOVATIONS LTD:  Liquidation proceedings
-------------------------------
Company Name:   Frontier Systems Innovations Ltd
Company No:   3583515
Com. Business:   Software Programmers
Appointed on:   21/06/00
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


G K WASTE LTD:  Liquidation proceedings
-------------------------------
Company Name:   G K Waste Ltd
Company No:   2700868
Com. Business:   Waste Disposal Contractors
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   John D Travers  IPno: 3492  Nigel A Spearing  8638
Firm Name:   BKR Haines Watts
Address:   Canterbury House  85 Newhall Street
City Postcode:   Birmingham  B3 1LH


GLOBAL MANAGED SOLUTIONS LTD:  Liquidation proceedings
-------------------------------
Company Name:   Global Managed Solutions Ltd
Company No:   2972865
Com. Business:   Computer Consultancy
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors
Liquidators:   H J Sorsky  IPno: 5398    
Firm Name:   Sorskys
Address:   Gable House  239 Regents Park Road
City Postcode:   London  N3 3LF


HAVENCORP LTD:  Liquidation proceedings
-------------------------------
Company Name:   Havencorp Ltd
Company No:   3016926
Com. Business:   Reproduction Funiture Manufacturer
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   P S Dunn  IPno: 2368  S R Thomas  1289
Firm Name:   Horwath Clark Whitehill & Co
Address:   Sherlock House  7 Kenrick Place
City Postcode:   London  W1H 3FF


HOGANS BUILDING CONTRACTORS LTD:  Liquidation proceedings
-------------------------------
Company Name:   Hogans Building Contractors Ltd
Company No:   3356325
Com. Business:   Building Contractors
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Paul Appleton  IPno: 8883    
Firm Name:   David Rubin & Co
Address:   Pearl Assurance House  319 Ballards Lane
City Postcode:   London  N12 8LY


INRECO LTD:  Liquidation proceedings
-------------------------------
Company Name:   Inreco Ltd
Com. Business:   Proprietor of Motor Racing Circuits
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors
Liquidators:   Eileen Blackburn  IPno: 8605    
Firm Name:   HLB Kidsons
Address:   Breckenridge House  274 Sauchiehall Street
City Postcode:   Glasgow  G2 3EH


J P L LTD:  Liquidation proceedings
-------------------------------
Company Name:   J P L Ltd
Company No:   3321032
Com. Business:   Provide Recruitment Services
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Mark Levy  IPno: 6329    
Firm Name:   Berley & Co
Address:   76 New Cavendish Street
City Postcode:   London  W1M 7LB


LICENSED PREMISES SIGN CO LTD:  Liquidation proceedings
-------------------------------
Company Name:   Licenced Premises Sign Co Ltd
Company No:   3771012
Com. Business:   Manufacture Signs for Licensed Prem
Appointed on:   21/06/00
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


MIDICY LTD:  Liquidation proceedings
-------------------------------
Company Name:   Midicy Ltd
Company No:   3566376
Com. Business:   Manufacture Reproduction Furniture
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Alex Kachani  IPno: 5780    
Firm Name:   Crawfords
Address:   Stanton House  41 Blackfriars Road  Salford
City Postcode:   Manchester  M3 7DB


PF2 CO UK LTD:  Liquidation proceedings
-------------------------------
Company Name:   PF2 Co UK Ltd
Company No:   1764419
Com. Business:   Photographers
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   John C Sallabank  IPno: 8099  Paul R Boyle  8897
Firm Name:   Harrisons
Address:   River Place  City Road East
City Postcode:   Manchester  M15 4PG


POPE (UK) LTD:  Liquidation proceedings
-------------------------------
Company Name:   Pope (UK) Ltd
Company No:   2980515
Com. Business:   Manufacture Pet Products
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors
Liquidators:   J P T Redmond  IPno: 8998    
Firm Name:   Pole Arnold
Address:   Stoughton House  Harborough Road
City Postcode:   Oadbury  LE2 4LP


QUOTEBACK LTD:  Liquidation proceedings
-------------------------------
Company Name:   Quoteback Ltd
Company No:   2147657
Com. Business:   Sports & Leisure Activities
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Richard A Saville  IPno: 7829    
Firm Name:   Savilles
Address:   1 North Road  The Park
City Postcode:   Nottingham  NG7 1AG


R S B (PLANT HIRE & SALES) LTD:  Liquidation proceedings
-------------------------------
Company Name:   R S B (Plant Hire & Sales) Ltd
Company No:   1403052
Com. Business:   Sell/HIre Earthmoving Equipment
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Members
Liquidators:   Peter Hickman  IPno: 8234    
Firm Name:   Charles David & Co
Address:   Wood Farm Business Centre  Stonham Road
City Postcode:   Ipswich  IP6 9TH


RACE SERVICES (1984) LTD:  Liquidation proceedings
-------------------------------
Company Name:   Race Services (1984) Ltd
Company No:   2737260
Com. Business:   Electrical Engineers
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors
Liquidators:   Allan J Clark  IPno: 6759    
Firm Name:   Moore Stephens Booth White
Address:   Sidcup House  12-18 Station Road
City Postcode:   Sidcup  DA15 7EX


S W VIAN LTD:  Liquidation proceedings
-------------------------------
Company Name:   S W Vian Ltd
Previous Name:   Seaforth Insurance Services Ltd
Company No:   1839653
Com. Business:   Insurance Services
Appointed on:   21/06/00
Type:   Members
Appointed by:   Members
Liquidators:   Michael D Dye  IPno: 4001    
Firm Name:   Duncan Sheard Glass
Address:   19 Seaview Road
City Postcode:   Wallasey  CH45 4QN


STREAMACTION LTD:  Liquidation proceedings
-------------------------------
Company Name:   Streamaction Ltd
Company No:   2456913
Com. Business:   IT Consultancy
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Michael T McCarthy  IPno: 8942    
Firm Name:   Wallets
Address:   Adventure Place
City Postcode:   Hanley  ST1 3AF


TEMPS SELECT (BIRMINGHAN) LTD:  Liquidation proceedings
-------------------------------
Company Name:   Temps Select (Birmingham) Ltd
Company No:   2741713
Com. Business:   Employment Agency
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Geoff Robbins  IPno: 6622  Neil C Money  8900
Firm Name:   Casson Beckman & Partners
Address:   Lichfield Place  435 Lichfield Road
City Postcode:   Birmingham  B6 7SS


TRANSPORT & VEHICLE SERVICES LTD:  Liquidation proceedings
-------------------------------
Company Name:   Transport & Vehicle Services Ltd
Company No:   3630340
Com. Business:   Refrigerated Haulage Contractors
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Henry E Hayes  IPno: 5450    
Firm Name:   Poppleton & Appleby
Address:   141 Great Charles Street
City Postcode:   Birmingham  B3 3LG


VALESTONE LTD:  Liquidation proceedings
-------------------------------
Company Name:   Valestone Ltd
Previous Name:   Rhodes & Booth Ltd
Company No:   996640
Com. Business:   Insurance Brokers (Dormant)
Appointed on:   21/06/00
Type:   Members
Appointed by:   Members
Liquidators:   Kenneth F Fortune  IPno: 3760    
Firm Name:   Clarke Whitehill Josolyne
Address:   Pelican House  10 Currer Street
City Postcode:   Bradford  BD1 5BA


VISTAGOLD DESIGNS LTD:  Liquidation proceedings
-------------------------------
Company Name:   Vistagold Designs Ltd
Company No:   3697481
Com. Business:   Printers
Appointed on:   21/06/00
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Richard I Williamson  IPno: 8013    
Firm Name:   Campbell Crossley & Davis
Address:   348-350 Lytham Road
City Postcode:   Blackpool  FY4 1DW


WESGT MERCHANT BANK HOLDIGNS LTD:  Liquidation proceedings
-------------------------------
Company Name:   West Merchant Bank Holdings Ltd
Previous Name:   Chartered West LB Holdings Ltd
Company No:   2426122
Com. Business:   Corporate Financial Services
Appointed on:   21/06/00
Type:   Members
Appointed by:   Members
Liquidators:   Nigel S Hill  IPno: 6355  Adrian R Stanway  2665
Firm Name:   PricewaterhouseCoopers
Address:   Plumtree Court
City Postcode:   London  EC4A 4HT


ZCCM (UK) LTD:  Liquidation proceedings
-------------------------------
Company Name:   ZCCM (UK) Ltd
Company No:   1740003
Com. Business:   Representive Office Services
Appointed on:   21/06/00
Type:   Members
Appointed by:   Members
Liquidators:   Andrew Conquest  IPno: 5329    
Firm Name:   Grant Thornton
Address:   Grant Thornton House  Melton Street
City Postcode:   London  NW1 2EP



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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA.  Lexy Mueller,
Mercy Villacastin, and Cristina Pernites 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.


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