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      T R O U B L E D   C O M P A N Y   R E P O R T E R     

                         E U R O P E

        Tuesday, October 17, 2000, Vol. 1, No. 114

                         Headlines

B E L G I U M

KLADARADATSCH: Art Movie House Is Insolvent
LOUIS DE POORTERE: Insolvent Textile Group Continues Proceedings
OSTEND STORES: Unions Take Action Against Redundancies


C Z E C H   R E P U B L I C

CDK PRAHA: Bankruptcy to Imperil Production of Metro Carriages
UNION BANKA: Still Registers Three Suitors


G E R M A N Y

GIGABELL AG:  Saunalahti to Acquire UK-based Subsidiaries


L I T H U A N I A

LITHUANIAN SHIPPING: New Government May Put Sell-Off on Hold


N E T H E R L A N D S

EVC INTERNATIONAL: Net Loss Narrowed to E6.2mn in the First Half


P O L A N D

HUTA KATOWICE: Privatization of Steelworks Underway


U N I T E D   K I N G D O M

AXA SUN LIFE: Legal Threat Over Orphan Assets
CORNWELL PARKER: Silentnight to Pay 23 Million Pounds Takeover
CORUS: Plant Closure Fear as Corus Cuts Jobs
DARLEYFIELD LTD: Liquidation Proceedings
EDGLEY SAILPLANES: Liquidation Proceedings

EUROTELECOM: Pretax Loss of 3.69 Million Pounds
GENEVA ENGINEERING: Accura Takeover Secures Jobs
GOVETT ENTERPRISE: Liquidation Proceedings
INTERNATIONAL CLEARING:  Losses Estimated at Pounds 1.2 Million
J M G (MANAGEMENT) : Liquidation Proceedings

LAKE VIEW: Liquidation Proceedings
LOFTUS ROAD:  Posts Pre-Tax Loss of 5.3 Million Pounds
ROYAL BRIERLEY: Cut Glass Company Calls in Receivers
TBI: U.S. Group Approaches TBI in 500 Million Pounds Bid
TI AUTOMOTIVE: Put Up for Sale

TOMKINS: Auditor Asked to Review Board Practices
TOMKINS:  Scheme Under Pressure
TOPNOTCH TEXTILES: Liquidation Proceedings
TRIFORM PRECISION: Toolmaker in 'Bizarre' Second Collapse
VALORUM (EUROPE): Liquidation Proceedings

VAUXHALL: Contributes to GM Quarterly Loss
VISION ONE: Liquidation Proceedings


=============
B E L G I U M
=============

KLADARADATSCH: Art Movie House Is Insolvent
-------------------------------------------
De Standaard & World Reporter reported earlier this week that
Belgian film distributors tried to remove their films from
Kladaradatsch! cinemas in Antwerp and Brussels after
Kladaradatsch! Antwerp manager Peter Hermans closed the books.
The loss of the former Cartoon's cinema, the predecessor of the
Antwerp Kladaradatsch!, was met with dismay in Antwerp cinema
circles.

Kladaradatsch! co-founder Eric Kloeck reportedly failed to
understand the suddenness of the insolvency. Given the company's
annual visitor numbers of 100,000, Mr Kloeck said, the
Kladaradatsch Antwerp cinema is still viable. Several anonymous
groups have already contacted Mr Kloeck about a restart of the
Antwerp branch. The future of the Brussels branch is uncertain
but the film distributors, who will incur the largest losses
together with a Flemish bank, are hoping to safeguard the
branch's film potential.


LOUIS DE POORTERE: Insolvent Textile Group Continues Proceedings
----------------------------------------------------------------
The Tournai commercial courts is expected to reaffirm that they
will not re-open the dossier on insolvent Belgian textile group
LDP, confirming the original ruling that the group's assets are
to be sold to the Dryon-Lano duo. Lawyers for Reginald and
Vincent De Poortere had appealed on the basis of irregularities
in proceedings, although this was quickly rejected by the courts,
Le Soir & World Reporter noted earlier this week.


OSTEND STORES: Unions Take Action Against Redundancies
------------------------------------------------------
Unions and staff of Belgian company Ostend Stores have staged a
protest against the dismissal of 48 staff, 40 workers and 8
clerical staff. De Standaard & World Reporter says the Ostend
Stores management and sister company Polyost have announced that
the companies are to be declared insolvent and that a new company
called Xirion will be founded. The move has led to 48 dismissals.
The unions want an acceptable social plan, an expansion of staff
numbers employable at the new company and social negotiations.


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

CDK PRAHA: Bankruptcy to Imperil Production of Metro Carriages
--------------------------------------------------------------
Czech News Agency noted last week that a potential bankruptcy of
CKD Praha Holding, to be decided by the Regional Commercial Court
in Prague soon, would put the production of carriages for the
Prague metro by the bankrupt CKD Dopravni systemy (DS) in
jeopardy, DS union's Ladislav Binko told CTK. Nevertheless, there
would be a way to keep up DS's smooth production, "but [the
bankruptcy] would bring about enormous problems," said Binko.

Production at DS is in full swing; 30 out of 110 carriages to be
supplied to the Prague metro by April 2002 have been turned out
so far. The Prague court could have ruled on CKD Praha Holding's
bankruptcy on Oct. 4 but it postponed the verdict, one of the
reasons for that being the fact that the court had on Oct. 3
received a third bankruptcy petition, by R.N.P., following those
filed by CHIPO and Aktiv.

"The cancellation of the contract for the already-launched
production of 22 metro trains, the liquidation of the company CKD
Vagonka and the collapse of the order for the production of high-
speed trains Pendolino for rail operator Ceske drahy would bring
about CKD Praha Holding's bankruptcy," spokesman Richard Pazout
told CTK prior to the court hearing. "The sale of DS to a
strategic investor would also be at risk," he added. Siemens of
Germany, Skoda and Inekon are interested in DS.


UNION BANKA: Still Registers Three Suitors
------------------------------------------
The two-month exclusivity for talks on an entry into Union banka,
granted to Austria's Raiffeisen Zentralbank (RZB), expired last
week. Union Group spokesman Josef Rericha told Hospodarske noviny
(HN) that Union still has three suitors: RZB, BNP Paribas and CSX
First Boston. The Union Group supervisory board should assess the
process and make a decision on further action. The daily says
there are two options: either Union will prolong RZB's
exclusivity, or it will grant exclusivity to another bidder. RZB
expressed interest in Union in May, and it was permitted to
proceed with a due diligence process. Meanwhile, Union Group
launched talks with BNP Paribas but these talks failed and the
exclusivity went to RZB in August.

A CTK report last week said that Union banka, one of the five
largest banks in the Czech Republic, is a fine catch for RZB,
adding that Union Group is selling its majority in Union banka in
order to strengthen the bank's capital. Union Group ended last
year with an audited loss of Kc153.331 million, an improvement
from 1998's losses of Kc896.52 million.


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

GIGABELL AG:  Saunalahti to Acquire UK-based Subsidiaries
---------------------------------------------------------
Finnish Internet and telecommunications operator Saunalahti is to
acquire the UK-based subsidiaries of the German group Gigabell
AG. The FIM3m deal, which includes Gigabell Ltd, Webleicester and
NetNet Ltd, introduces Saunalahti to the UK ISP and
telecommunications markets, M2 Communications reported last week.
Since September Saunalahti has been operating in the UK through
its Jippii portal, which offers content and SMS value-added
services. Saunalahti is in negotiations to acquire a majority
holding in Gigabell AG in Germany, but said that the acquisition
of the UK companies does not affect those negotiations.

Frankfurter Rundschau & World Reporter reported last week income
from the sale will be invested in the restructuring of Gigabell,
which filed for insolvency in September, but was rescued by the
Finnish company's takeover bid. However, Saunalahti plans to
invest in Gigabell only if the restructuring of the German
company is successful.


=================
L I T H U A N I A
=================

LITHUANIAN SHIPPING: New Government May Put Sell-Off on Hold
------------------------------------------------------------
Lithuania's incoming government may put the privatization of
Lithuanian Shipping Company (LISCO) on hold, provided that a deal
with the company's buyer is not signed before the new Cabinet of
Minister is formed, BNS & Euromoney reported last week. "The
price of 50 million US dollars offered for LISCO does not satisfy
us," Jonas Lionginas, the Liberal Union's candidate to take up
the finance minister's post in the new government, said. He said
it would be unreasonable to sell LISCO for 200 million litas (USD
50 mln), given the company's balance value (485 million litas)
and the market price of one ferry (between 60 million and 72
million dollars).

Lionginas noted that LISCO ferries might soon become the only
route to Western Europe for Lithuanian carriers. If the shipping
company's new owners raise transportation tariffs, carriers will
lose competitiveness and the Western market will be effectively
closed off to them, he said. The candidate for the finance
minister's post referred to complaints by the Lithuanian National
Road Carriers Association, Linava, that Poland is limiting quotas
to Lithuanian carriers due to the poor state of Polish roads.
Lionginas criticized the LISCO privatization as too hasty, saying
that there was no need to rush. Liberals will seek to review the
draft agreement if the deal is not closed before the new
government is formed, but they do not intend to cancel the
agreement if is signed earlier, Lionginas said.

The head of the State Property Fund (SPF), responsible for the
LISCO privatization, was unable to say on Thursday if the deal to
sell a 75 percent stake in LISCO to B.B. Bredo B.V., the
Netherlands-registered consortium, would be signed before the
appointment of the new government. SPF Director General Stasys
Vaitkevicius said he hoped to have all necessary documents ready.


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

EVC INTERNATIONAL: Net Loss Narrowed to E6.2mn in the First Half
----------------------------------------------------------------
Europe's biggest PVC producer EVC International said its merger
talks with German peer Vestolit GmbH&Co had ended without success
and added it expected to post an operational loss in the second
half of 2000, Reuters noted last week. The group said demand for
PVC had fallen in the third quarter, sales prices had decreased
and costs remained high because of high oil prices. This had
depressed profit margins. "The group therefore expects to post an
operational loss in the two last quarters of 2000," the company
said.

In July, EVC said its net loss had narrowed to 6.2 million euros
in the first half of 2000 from 37.2 million in the year-ago
period but it declined to reiterate a previous forecast. The
company said that the deteriorating market conditions would also
affect its cash flow and added it would therefore have to adjust
a number of credit arrangements. No further details about this
were disclosed. It also did not elaborate on the reason why a
possible bid for EVC would not materialize. EVC, in which
Britain's ICI and Italy's Enichem hold stakes of 15 and 16.9
percent respectively, said in July it had been approached by
Vestolit about a possible takeover of EVC.


===========
P O L A N D
===========

HUTA KATOWICE: Privatization of Steelworks Underway
---------------------------------------------------
The treasury ministry has finally accepted investment offers by
British-Dutch Corus holding and Italy's Danieli, Polish News
Bulletin reported last week. Under the plan, Huta Katowice
steelworks is to be divided into three companies. Some 31 percent
of the first, HL Long, manufacturing long products, is to be
taken over by Corus, another 20 percent by the European Bank for
Reconstruction and Development, and 19 percent by Huta Katowice's
creditors. Danieli will buy 20 percent of the second firm, making
the so-called flat products and eventually double this stake. The
production of tin after Danieli's investments should reach 1.8m
tons a year, to be distributed by the Italians.


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

AXA SUN LIFE: Legal Threat Over Orphan Assets
---------------------------------------------
Financial Times reported yesterday that the debate over orphan
assets, and who owns them, could be nearing a solution. The
majority of Axa Sun Life policyholders have decided to take a
one-off payment, averaging 400 pounds, in return for surrendering
any future claims to the 1.7bn pounds sloshing around in the
French insurer's coffers. But this decision - which will be
confirmed, the closing date for Axa's 660,000 qualifying
customers to return their ballot forms if they agree - is being
challenged by the Consumers' Association. The CA thinks Axa's
offer is unfair, which is why the consumers' champion has offered
to fight on behalf of policyholders for a better division of the
spoils. This fight will now have to be carried out in the High
Court as enough policyholders have voted in favor of Axa's offer.

By last Friday, more than 70 percent had already demonstrated
acceptance by returning their forms - a much higher proportion
than the 35 percent Axa needs in order to proceed. Now it has
enough votes, it will submit the deal to the High Court for
approval next month.


CORNWELL PARKER: Silentnight to Pay 23 Million Pounds Takeover
--------------------------------------------------------------
Silentnight, the UK bedmaker, spent 23m pounds of its cash pile
on an agreed takeover of the lossmaking Cornwell Parker, the
fabrics and furniture group best known for its Parker Knoll
reclining chairs, Financial Times said last week. Cornwell Parker
reported a pre-tax loss for the year to July 31 of 6.9m pounds
after an exceptional write-down of more than 4m pounds on its
fabric stocks. Sales fell from 79.6m pounds to 71.4m pounds,
partly through the continuing impact of cheap imports.

Andrew Stafford, who was appointed chief executive of Cornwell
Parker on July 1, admitted the results were disappointing, but
said most of the bad news had been in the first half. Since then
the group had started to move forward through a series of
initiatives, including the ?900,000 acquisition of the Stag
furniture brand. "I remain confident that we would have delivered
a significant increase in shareholder value in a relatively short
time," he said. "But the institutional shareholders have been
given the opportunity of realizing their investment in cash."

Silentnight is offering 55p a share, a premium of almost 49
percent to the closing price of 37p the day before the approach
emerged but well below the 12-month high of 95«p. Bill Simpson,
chief executive at Silentnight, described the price as "very
fair". It would take the group into the markets for upholstered
furniture and for more upmarket, veneered cabinets.
"Parker Knoll is the best known furniture brand in the UK
upholstered market, while Stag is probably the best cabinet
brand," he said. He plans to review the options on Cornwell
Parker's fabrics business. Silentnight has received acceptances
representing 36.9 per cent of the shares. Silentnight looks to be
picking up a bargain, paying 23m pounds for a company with sales
of more than 70m pounds and net assets of 37.5m pounds.


CORUS: Plant Closure Fear as Corus Cuts Jobs
--------------------------------------------
Corus, the former British Steel, was yesterday accused of playing
the euro-currency game and switching production to the
Netherlands after announcing further job cuts and a million-ton-
a-year reduction in UK capacity, The Daily Telegraph noted
earlier last week. The production cutback alarmed union leaders
and led to renewed speculation that the closure of a steel making
plant is back on the agenda as Corus wrestles with losses, a fall
in orders and the currency headache. Corus, now an Anglo-Dutch
group after the takeover of Hoogovens, is shedding 210 jobs on
top of the 4,000 redundancies announced since June in its UK
operations and mothballing one of three blast furnaces at its
Llanwern strip mill complex in South Wales to reduce steel making
capacity by almost 8pc.

According to Daily Telegraph production is also being trimmed at
a number of other plants as Corus pushes ahead with a two-year
recovery program, but union leaders fear there are further cost-
cutting measures to come. Paul Collier, an AEEU engineering
official in Wales, said there was concern that the announcement
marked the start of a Corus move to shift more production from
the UK to its Imogen works in the Netherlands. He added: "There
is grave concern about where this company is going
internationally. They seem to be able to invest money in units in
other parts of Europe, yet here they say they are cash-strapped."
Trade sources said Corus was giving priority to fully loading the
Dutch strip mill because it has cost advantages over the old
British Steel plants in South Wales.


DARLEYFIELD LTD: Liquidation Proceedings
-----------------------------------------
Company Name: Darleyfield Ltd
Company No: 2643261
Appointed on: 14/09/00
Type: Members
Appointed by: Members
Liquidators: Robert Valentine IPno: 3569
Firm Name: Valentine & Co
Address: 4 Dancastle Court 14 Arcadia Avenue
City Postcode: London N3 2HS


EDGLEY SAILPLANES: Liquidation Proceedings
-------------------------------------------
Company Name: Edgley Sailplanes Ltd
Company No: 3418200
Com. Business: Aircraft Design/Production
Appointed on: 14/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: Michael F Stevenson IPno: 8154
Firm Name: Smith & Williamson
Address: Old Library Chambers 21 Chipper Lane
City Postcode: Salisbury SP1 1BG


EUROTELECOM: Pretax Loss of 3.69 Million Pounds
-----------------------------------------------
Telecoms Correspondent Telecoms equipment installer EuroTelecom
Communications has announced widening pretax losses despite an
explosion in turnover. The company, which floated on AIM in
April, made a pretax loss of 3.69 million pounds for the year to
30 June, compared with 700,000 pounds a year earlier. House
broker Beeson Gregory had been expecting losses of just 1.4
million pounds. It put the higher-than-expected pretax losses
down to an accelerated program of expansion throughout the UK,
The Street noted last week.


GENEVA ENGINEERING: Accura Takeover Secures Jobs
------------------------------------------------
A collapsed Midland precision engineering firm has been rescued
and the jobs of its workforce saved by a fast-growing
manufacturer, Evening Mail noted last week. Accura, of
Wolverhampton, moved in quickly for Geneva Engineering, in
Pershore, after it was placed in administration by the High Court
in Birmingham two weeks ago to keep creditors at bay.

The struggling company, which carries out deep hole boring,
drilling and machining for the oil, gas and aerospace industries,
ran out of cash after a major contract was lost. The takeover by
the highly acquisitive Accura, for an undisclosed sum, will now
guarantee the 22 jobs at the site. The new owners have pledged a
minimum of pounds 250,000 to help the new business, Accura Geneva
Ltd, to find its feet. Accura chief executive Craig White said:
"Geneva complements perfectly the significant capacity of our
machining services division."


GOVETT ENTERPRISE: Liquidation Proceedings
-------------------------------------------
Company Name: Govett Enterprise Investments Ltd
Company No: 2213468
Com. Business: Investment Holding Co
Appointed on: 14/09/00
Type: Members
Appointed by: Members
Liquidators: Simon P Bower IPno: 8338 M J Hore 1630
Firm Name: RSM Robson Rhodes
Address: 186 City Road
City Postcode: London EC1V 2NU


INTERNATIONAL CLEARING:  Losses Estimated at Pounds 1.2 Million
---------------------------------------------------------------
The Daily Telegraph reported last week that the Creditors of
International Clearing Associates, (ICA) the futures trading
company, were told that total losses appeared to be about pounds
1.2m. Baker Tilley, the liquidator, told 40 of the company's 100
creditors they would lose money. However, the value of the
accounts is about pounds 800,000, higher than initial estimates
of pounds 650,000. About 60 independent futures traders, called
locals, were clients of ICA and most are understood to have
believed they were dealing with a clearing company.

The locals held about pounds 900,000 in funds for margin payments
at Liffe, the London International Financial Futures and Options
Exchange. However, it has emerged ICA was authorized by the
Securities and Futures Authority only as a principal trading
firm, rather than as a clearer. Andrew Tate at Baker Tilley said:
"There seems to be confusion among some people about the status
of the company." If the liquidators do not treat the 60
independent futures traders as clients of a clearing company,
then their funds become part of the pool available to all
creditors, The Daily said.


J M G (MANAGEMENT) : Liquidation Proceedings
---------------------------------------------
Company Name: J M G (Management) Ltd
Company No: 1037615
Com. Business: Property Co
Appointed on: 14/09/00
Type: Members
Appointed by: Members
Liquidators: K J Watkin IPno: 5276
Firm Name: K J Watkin & Co
Address: Emerald House 20 Anchor Road Aldridge
City Postcode: Walsall WS9 8PH


LAKE VIEW: Liquidation Proceedings
-----------------------------------
Company Name: Lake View Securities Ltd
Company No: 1967263
Com. Business: Investment Dealing/Trading
Appointed on: 14/09/00
Type: Members
Appointed by: Members
Liquidators: Simon P Bower IPno: 8338 M J Hore 1630
Firm Name: RSM Robson Rhodes
Address: 186 City Road
City Postcode: London EC1V 2NU


LOFTUS ROAD:  Posts Pre-Tax Loss of 5.3 Million Pounds
------------------------------------------------------
The Times reported earlier this week that leisure company Loftus
Road reported final pre-tax losses of 5.3 million pounds. There
is no dividend.


ROYAL BRIERLEY: Cut Glass Company Calls in Receivers
----------------------------------------------------
Royal Brierley Crystal, one of the leading names in hand cut
glass manufacturing, has called in the receivers. The firm, based
in Brierley Hill, West Midlands, has appointed KPMG as receiver
to look for a potential buyer. Founded more than two centuries
ago the firm is England's only large-scale manufacturer of mouth-
blown hand cut crystal and employs 125 people. About 75 workers
are based at the factory in Brierley Hill while another 50 work
in high street stores in the region. The decision to call in the
receivers has also placed a question mark over plans to build a
GBP5.5m glass heritage and visitor centre in Dudley, Yorkshire
Post reported last week.

Myles Halley, partner at KPMG in Birmingham, said he was
confident a buyer could be found and the workforce kept on. He
said: "I am confident that the strong brand name and quality of
Royal Brierley Crystal will appeal to potential buyers. We are
already talking to one interested party. We have spoken to the
workforce and I am confident they can be taken on by a new buyer.
I feel a larger brand will be able to take the firm on and add it
to its existing portfolio." The company has an annual turnover of
GBP4m but Mr Halley said it needed to modernize. It was also
struggling to cope with tough trading conditions in a competitive
market.


TBI: U.S. Group Approaches TBI in 500 Million Pounds Bid
--------------------------------------------------------
TBI, the world's largest operator of regional airports, is in
takeover talks with a U.S. private equity group, which could lead
to an offer for the company worth around 500m pounds, Financial
Times noted yesterday. There was a flurry of speculation earlier
this month that TBI was about to unveil a deal. Although the
discussions are progressing, it is not clear whether the company
will be in a position to make an announcement before its interim
results, due in November.

TBI received an unsolicited offer in August from an unnamed
suitor and was forced by the Takeover Panel to disclose the
approach. Since then it has received a second and more serious
offer, which is the subject of the current discussions. The group
owns or operates a total of 37 airports worldwide, including
Belfast and Cardiff, and it also has a 25 percent interest in
London Luton airport, the main hub for the low-cost airline
easyJet.

In the last 18 months, TBI has embarked on a strategy of
focussing exclusively on airport operation. Under its chief
executive, Keith Brooke, TBI has sold off all of its commercial
property interests for 190m pounds and bought Airport Group
International for 86m pounds, widening its portfolio of overseas
operations. In the year to 31 March reported a headline loss of
4.5m pounds because of charges associated with its restructuring.

Passenger numbers increased by 15 percent at Belfast airport and
by 5 percent at Cardiff - its two principal airports. TBI's
biggest shareholder is Schroders with just more than 13 percent.
Philips and Drew owns 4 percent and Legal & General 3.7 percent
whilst one of George Soros's funds has a 4.2 percent stake.


TI AUTOMOTIVE: Put Up for Sale
------------------------------
TI Group, the engineering company that is being acquired by
Smiths Industries, is understood to have reached a shortlist of
four buyers for its automotive unit, Financial Times reported
last week. TI Automotive, put up for sale last month, is thought
to have attracted four financial buyers, believed to include
Cinven, CVC and Blackstone Group. The Blackstone Group, which has
already invested $3.8bn (2.6bn pounds) of equity capital in 60
transactions, is keen to become more aggressive in Europe. If
successful, a bid for TI's automotive assets would be one of
Blackstone's first European private-equity deals since it
recently opened a London office. CVC is also thought to have
submitted a bid for the unit with a view to merging it with the
automotive business it bought from Invensys, the automation and
controls group, this year. It is understood that CVC would then
strip out costs and attempt to refloat the merged companies at a
future date.

According to Financial Times that all three private-equity firms
declined to comment. Sir Christopher Lewinton, the chairman of
TI, who announced his resignation two days ago, is staying on to
complete the sale of TI Automotive. Sir Christopher said he hoped
to choose one firm for exclusive negotiations by the end of the
year and to complete a sale in February. The offer document is
expected to be posted to shareholders this month. It is
understood that TI will return the bulk of the proceeds from the
disposal, about 900m pounds, to shareholders. Anything left will
be used to pay debt.

TI Automotive, which makes fuel storage and delivery systems,
made operating profits of 124m pounds on sales of 1.2bn pounds
last year. TI's Dowty aerospace business will double the size of
Smiths' aerospace operation. It will also give Smiths a sealings
business to add to its industrial division and medical products
business. However, the deal met a cool response when it was
announced at the end of last month. Concerns are now growing that
another party could counterbid for TI before the offer document
is posted to shareholders next week. TI has already held talks
with BF Goodrich of the US and Tyco has been touted as a good fit
with Smiths.


TOMKINS: Auditor Asked to Review Board Practices
------------------------------------------------
The Independent reported yesterday that Tomkins' auditor, Arthur
Andersen, are to come under pressure from shareholders after it
emerged that the accountants received 12.8m pounds of fees from
the conglomerate last year, and over 30m pounds worth of work in
the last five years. Andersen has been asked to review the
current and historic board practices at the group following
accusations of corporate excess leveled against Greg Hutchings,
the Tomkins chief executive who resigned. David Newlands, the
former GEC and Saatchi & Saatchi finance director, has taken over
the role of executive chairman, and will review the structure of
the company.


TOMKINS:  Scheme Under Pressure
-------------------------------
Corporate governance experts on Sunday criticized a bonus scheme
that gave Greg Hutchings, who resigned last week as chief
executive of UK engineering conglomerate Tomkins, direct
influence over his pay, The Financial Times noted yesterday. The
scheme, which was approved by senior Tomkins non-executive
directors and the chairman, was linked directly to movements in
the dividend, share price and earnings per share, in contrast
with normal corporate practice. The formula was used to award Mr
Hutchings, who left after allegations of personal use of
corporate assets, a 443,000 pounds ($644,000) bonus last year. It
contributed to a total pay of 1.46m pounds. Corporate governance
experts said that Mr Hutchings and his fellow directors had a
direct influence over the bonuses because the dividend is set by
the board.

Most UK companies link the awards to total shareholders' return,
a formula in which the share price movement is the biggest
component. "Directors' bonuses should not be payable against
indicators which directors' decisions directly influence, such as
levels of dividend," said Stuart Bell of the Pension and
Investment Research Consultants (Pirc). "It's not common for
dividend growth to be a separate element." The news of the
remuneration scheme is likely to increase pressure on Ali
Wambold, Tomkins' senior non-executive director, to step down.


TOPNOTCH TEXTILES: Liquidation Proceedings
-------------------------------------------
Company Name: Topnotch Textiles Ltd
Company No: 3842789
Com. Business: Building Manufacturers
Appointed on: 14/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: Jonathan E Avery-Gee IPno: 1549
Firm Name: Kay Johnson Gee
Address: Griffin Court 201 Chapel Street
City Postcode: Salford M3 5EQ


TRIFORM PRECISION: Toolmaker in 'Bizarre' Second Collapse
---------------------------------------------------------
The collapse of a Birmingham tool making company for the second
time in less than two years has been called bizarre by receivers,
Birmingham Post said earlier last week. Triform Precision
Technology, which employs 36 people at its factory in Old Walsall
Road, Great Barr, has run up debts of about pounds 1 million
despite having a healthy order book. Receivers from the
Birmingham office of insolvency specialist Moore Stephens Booth
White are keeping the business running while they try to find a
buyer. "The bizarre aspect is that the company has a healthy
order book for pounds 700,000-worth of work over the next six
months," said Nigel Price, of MSBW. "Its products are in demand,
but it does not have the cash to fund production." Triform, which
makes tools for plastic injection moulders and the pressure
diecasting industry, survived a previous receivership last year
after a bad debt of pounds 150,000 pushed it over the financial
brink.

Managing director Len Barker and two unnamed private investors
then stepped into buy the company, which was previously called
Triform Precision, out of receivership with the backing of HSBC
and RDM Factors. Mr Barker, who is still with the company, said
at the time: "Things have got tougher over the last year even
without the blow of the bad debt." Mr Price said: "We are
continuing to keep the company trading and feel that with the
right backing it could be profitable. We hope we can find a
purchaser quickly." Ideal Garage, a motorcycle dealership, in
Bromford Lane, Ward End, Birmingham, has gone into receivership.
Mr Nick Edwards, senior manager at receivers Kroll Buchler
Phillips, said a number of customers claim to have paid for bikes
from the garage which they are yet to receive, and fear they
could lose out.


VALORUM (EUROPE): Liquidation Proceedings
------------------------------------------
Company Name: Valorum (Europe) Ltd
Previous Name: Pharmakopius (Europe) Ltd
Company No: 2343142
Com. Business: Pharmaceuticals
Appointed on: 14/09/00
Type: Members
Appointed by: Members
Liquidators: A S Wood IPno: 7929
Firm Name: Mazars Neville Russell
Address: Lancaster House 67 Newhall Street
City Postcode: Birmingham B3 1NG


VAUXHALL: Contributes to GM Quarterly Loss
------------------------------------------
Financial Times noted last week that General Motors announced a
$181m (124m pounds) loss on its European operations for the third
quarter of the year. The company declined to spell out Vauxhall's
contribution to GM's quarterly results, or the cost of the price
cuts and warranty initiatives. Vauxhall, the British arm of
General Motors, warned that it would have to cut costs in
manufacturing and marketing to offset the impact of price cuts.

The carmaker, which became the latest to reduce list prices, said
it would accelerate measures to improve productivity at its main
manufacturing sites - Luton in Bedfordshire and Ellesmere Port on
Merseyside. Vauxhall is cutting list prices by up to 12 percent,
following a similar initiative last week by Ford, the UK market
leader. It is the first large volume carmaker to link the pricing
issues to manufacturing costs. Nick Reilly, Vauxhall's chairman,
said the company would go further than other carmakers by
offering generous warranty terms, including free loan cars and
roadside assistance for three years on new car sales.


VISION ONE: Liquidation Proceedings
------------------------------------
Company Name: Vision One Ltd
Company No: 2330077
Com. Business: Technical Drafters
Appointed on: 14/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Robert Valentine IPno: 3569
Firm Name: Valentine & Co
Address: 4 Dancastle Court 14 Arcadia Avenue
City Postcode: London N3 2HS



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.

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