---

       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 24, 2000, Vol. 1, No. 119

                           Headlines

C Z E C H   R E P U B L I C

CKD PRAHA: Files Complaint Against Lokomotivka Administrator
IPB POJISTOVNA:  Court Rejects CSOB Lawsuit
KOTVA DEPARTMENT: Securities Commission Alerted to Trading Query
SVIT ZLIN:  Prosecutor Appealing Bankruptcy Decision
ZELEZARNY A DRATOVNY:  Nova Hut Joins Bankruptcy Petition


G E R M A N Y

HEW: Vattenfall to Buy Stake
PHILIPP HOLZMANN: Commission Gives Consultant Two Months


H U N G A R Y

FREEPHONE KFT:  Faces Liquidation
MALEV AIRLINES:  Hungary Launches Tender for National Airline


I T A L Y

IRI: Liquidation Committee Receives Just One Offer


L A T V I A

LATVIJAS NAFTA: Court Declares Latvian Oil Insolvent


L I T H U A N I A

KLAIPEDOS NAFTA: Sells Half of New Shares


P O L A N D

DAEWOO MOTOR: To Cut 2,600 Workers at Polish Passenger Car Unit
DAEWOO POLAND: Denies Report to Lay Off 2,600 Zeran FSO Employees
PROCHNIK TEXTILE: Dismisses Finance Director for Company Losses


S W E D E N

RECULTURE: Submits Bankruptcy Application
YELLOWRENT.COM: Up for Closure


U N I T E D   K I N G D O M

BCCI: Claims Delayed Until Next Year
BARINGS:  Accountants Scheme has Laid Complaints
BASS PUB: Up for Sale
BRACKENRIDGE CO.: Liquidation Proceedings
COUNTY CONTRACTORS: Liquidation Proceedings

DILLARD LTD: Liquidation Proceedings
FRANK & SHIRLEY: Liquidation Proceedings
GORDON & INNES: Pricewaterhouse Receivers
INDEPENDENT MORTGAGE: Liquidation Proceedings
MG ROVER: Tie-up with the Logistics Arm of Caterpillar

MG ROVER: To Call on Arbitrators
NOBLECLEAR LTD: Liquidation Proceedings
OAK PROPERTIES: Liquidation Proceedings
PULSE GRAPHICS: Liquidation Proceedings
TENNET: Dutch to Buy Power Grid

TRAVELLERS BOOK: Liquidation Proceedings
QXL: Cash-Strapped Online Auctioneer in Talks to Clinch Alliance
QXL: In Cash Hunt
VAN WORLD: Liquidation Proceedings


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

CKD PRAHA: Files Complaint Against Lokomotivka Administrator
------------------------------------------------------------
Czech A.M. noted earlier this week that CKD Praha Holding filed a
criminal complaint against Jiri Sehnal, the bankruptcy
administrator of CKD Lokomotivka, and people around him for
allegedly filing bankruptcy petitions against the holding on the
basis of fabricated claims.


IPB POJISTOVNA:  Court Rejects CSOB Lawsuit
-------------------------------------------
TV Prima reported that a CSOB lawsuit against Cetus, which
controls 35 percent of IPB Pojistovna, was rejected by Prague's
Regional Commercial Court. The bank wanted Cetus suspended from
trading in shares of the insurer. CSOB says it will appeal. It is
also involved in an ownership dispute over a 65 percent majority
in the CR's number three insurer, TV Prima itself and a pension
fund with GES Holding subsidiary Domeana, Czech A.M. noted
earlier this week.


KOTVA DEPARTMENT: Securities Commission Alerted to Trading Query
----------------------------------------------------------------
Only several months after the renewal of trading in the shares of
the Kotva department store, HN says a suspicious transaction has
been reported.

The Xodax company, which owned around 14 percent of these shares,
transferred the stake to the firm Sprint. The price was almost
three times higher than what the shares are being traded in
public markets. Because the deal has caused a huge change in the
price of the shares, the Securities Commission (KCP) wants to
take a closer look at the case. "We will inquire into the
developments of trading in this issue," Katerina Palkova of KCP's
press section told HN.

CTK & Euromoney reported earlier this week that the plans of
Kotva's new minority owner are not yet known. The background of
the transaction is also unclear because the daily has not managed
to get in touch with either of the two sides. Kotva's majority
owner is the Forminster Enterprises Limited company, which
controls 54.63 percent. Forminster had been in dispute over the
shares with the Trend investment fund for several years.


SVIT ZLIN:  Prosecutor Appealing Bankruptcy Decision
----------------------------------------------------
Czech A.M. noted earlier this week that the State Prosecutor
appealed a Regional Commercial Court decision to declare footwear
producer Svit Zlin bankrupt, claiming it failed to prove
bankruptcy was warranted. This marks the first time a prosecutor
has ever objected to a Commercial Court decision.


ZELEZARNY A DRATOVNY:  Nova Hut Joins Bankruptcy Petition
---------------------------------------------------------
The CR's largest steel producer, Nova Hut, says it has filed a
bankruptcy petition against the Zelezarny a Dratovny Bohumin
(ZDB) ironworks, Czech A.M. noted earlier this week. The Trinecke
Zelezarny, Moravia Steel group filed a similar petition earlier.
ZDB reportedly owes Nova Hut Kc 98 mln.


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

HEW: Vattenfall to Buy Stake
----------------------------
Financial Times reported earlier this week that Vattenfall, the
Nordic region's largest energy company, took a further step in
its expansion in Germany, when it signed a memorandum of
understanding with Eon of Germany and Sydkraft of Sweden,
agreeing to buy a controlling stake in Hamburgische
Electricitats-Werke. The Swedish state-owned electricity utility
already owns 26.2 percent of HEW but through a deal with Sweden's
Sydkraft and Germany's Eon Energie it will gain control of
another 37 percent. In exchange, Eon and Sydkraft will acquire a
number of Vattenfall's assets in Norway, Sweden, the Czech
Republic and Lithuania plus E490m in cash.

The assets Eon and Sydkraft will receive are Vattenfall's stakes
in Hafslund (20.5 percent), a Norwegian generation, transmission,
and distribution company, in Fredrikstad Energiverk (40 percent),
in Fredrikstad Energinett (35 percent), in the Swedish generation
company Forsmark Kraft (8 percent), in Forsmark Distribution (100
percent), in Vattenfall Naturgas (51 percent), in the operating
company of the Baltic Cable (33.3 percent), in the Czech regional
distributor VCE (41.7 percent), and in the Lithuanian energy
utility LPC (10 percent).

HEW is Vattenfall's bridgehead into the German market. Through
the Hamburg-based utility the Swedes hope to gain control of
Bewag, the Berlin electricity supplier. Bewag in turn is seen as
the platform to gain control of Veag, a utility with a strong
presence in eastern Germany. Leif Josefsson, Vattenfall's chief
executive has said he plans to treble the size of the company
within five years with Germany seen as the key to expansion.


PHILIPP HOLZMANN: Commission Gives Consultant Two Months
--------------------------------------------------------
The European Commission has given an independent consultant two
months to prepare a report into the effects of proposed aid for
troubled German construction firm Philipp Holzmann AG, Reuters
said earlier this week. The news makes it unlikely the
Commission, the 15-nation European Union's executive, will be
able to reach a rapid decision on the legality of an aid package
put together by the German government last November to save
Holzmann from insolvency. The source suggested the Commission
still had doubts about the aid package and rejected German
criticism it was dragging its feet over reviewing the loans,
saying it could have acted more quickly if Germany had opted for
a rescue package rather than long-term restructuring aid.

The Commission is investigating the legality of a 250 million
mark ($107.8 million) rescue package assembled by the German
government last November. It is also looking at a recent 125
million mark loan by the German KfW state development agency.
Germany has been lobbying the Commission to reach a rapid
decision on whether the aid is legal, including talks in Brussels
between Deputy Finance Minister Caio Koch-Weser and EU
Competition Commissioner Mario Monti. Holzmann, undergoing a
massive restructuring which has already cost 4,000 jobs, moved
into profit in June and hopes to end the year with a slight
operating profit, Reuters said.


=============
H U N G A R Y
=============

FREEPHONE KFT:  Faces Liquidation
---------------------------------
Hungary A.M. noted earlier this week that according to unnamed
sources, communications company Freephone Kft will undergo
liquidation. The company offers free telephone services for
callers willing to listen to ads in return. Freephone was created
in 1998 with base capital of Ft 10 million by Budaestate and
Audiotel. Freephone CEO Tamas Bohner said software provider
Telectron Rt did not fulfill its contract, which made the
operation of the company impossible. Telectron CEO Andras Fabula
denies claims that his company is at fault. The case is currently
waiting for a court decision.


MALEV AIRLINES:  Hungary Launches Tender for National Airline
-------------------------------------------------------------
Hungary launched a tender for a 46.8-percent stake in its Malev
national airline, with Air France, KLM, Swissair and SAS among
prospective bidders, officials said. The APV Rt. state
privatization agency invited offers by January 8 for the closed,
single-round tender expected to interest some 20 potential
investors. "APV Rt. and Malev's privatization advisor ING Baring
found it would not be reasonable to apply a lengthly, two-round
procedure," it said. Malev managers refused to comment on the
decision. "The ball is now on APV Rt.'s side," Malev spokesperson
Margit Kocsi told Agence France-Presse.

According to Agence France-Presse, the tender is Hungary's second
attempt to privatize Malev, after a 1992 deal with Alitalia
collapsed. At that time, Alitalia bought a 30 percent share in
Malev and the Italian Simest investor group a 5 percent stake for
a combined price of 76 million dollars (euros). Hungary bought
back these stakes in 1997 after the European Union called on
Alitalia to sell its foreign interests. This time, "a well-
capitalized investor is needed," government spokesman Gabor
Borokai told AFP. "Malev has survived an unsuccessful
privatization. Now we have every hope that it is looking forward
to a successful privatization deal so that its passengers will
like it even better than before," he said.


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

IRI: Liquidation Committee Receives Just One Offer
--------------------------------------------------
Il Sole 24 Ore & World Reporter noted earlier this week that
IRI's liquidation committee has received only one offer for
merchant banking unit Cofiri, according to unconfirmed reports.
The offer is said to have come from a grouping put together by
Gilberto Gabrielli, a financier who until recently was the
managing director of ABN Amro's Italian associate. The grouping
comprises Tosinvest of Roman businessman Tonino Angelucci and
Fineldo of Vittorio Merloni, each with a 40 percent stake. A
third partner, construction company Lamaro, is reported to have
pulled out.


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

LATVIJAS NAFTA: Court Declares Latvian Oil Insolvent
----------------------------------------------------
BNS & Euromoney noted earlier this week that the Riga Regional
Court declared to-be-privatized Latvijas Nafta (LN, Latvian Oil)
company as insolvent. The court declared LN's insolvency as of
Oct. 4 and appointed lawyer Dace Ginberga as administrator. The
creditors may apply their claims within two months since the
publication of a respective announcement in the country's
official newspaper.

LN President Jevgenijs Kisiels said the company filed insolvency
report stating it will not be able to meet its liabilities that
exceed LN's assets. Grinberga said in the court LN's monetary
resources as of Sept. 1 amounted to 182,000 lats (USD 293,000),
fixed assets 3.96 million lats and the remaining amount of
turnover funds 2.84 million lats. The company's debts to the
creditors meanwhile early in September amounted to 10.2 million
lats. As LN was declared insolvent, the legal proceeding in the
Finance Ministry's claim against LN and the Latvian Privatization
Agency on 15.48 million lats was suspended.


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

KLAIPEDOS NAFTA: Sells Half of New Shares
-----------------------------------------
Lithuania's Klaipedos Nafta (Klaipeda Oil), the operator of the
Klaipeda-based oil product terminal, sold around 49 percent of
its new share issue worth 80 million litas (USD 20 mln) during
the first stage of placement, the company said. The state-owned
holding company Naftos Terminalas (Oil Terminal) was one of the
two existing shareholders that subscribed to new shares. Naftos
Terminalas, Klaipedos Nafta's largest shareholder, acquired 38.3
million litas worth of shares through capitalization of its loans
to the company, BNS & Euromoney reported earlier this week.

A number of shares went to a small shareholder of the oil
terminal operator. Neither Osman Trading nor Woodison Trading
acquired new shares at this stage. Klaipedos Nafta is selling new
shares for their nominal value of 100 litas a share without any
restrictions during the second stage of placement, which covers
the period between Oct. 19 and Dec. 1. Klaipedos Nafta is set to
raise its authorized share capital from 242 million to 322
million litas through additional contributions.


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

DAEWOO MOTOR: To Cut 2,600 Workers at Polish Passenger Car Unit
---------------------------------------------------------------
Daewoo Motor's trade union said it would strike if the bankrupt
South Korean carmaker tried to sack some of the 13,000 workforce
under a restructuring plan. As the carmaker's survival is
dependent upon the creditor-imposed restructuring without
emergency loans from creditors, it could soon be forced to cease
production. The union also opposed the sale of Daewoo to General
Motors because of fears over job cuts and asked the government to
nationalize the carmaker. The government has already rejected
nationalization, saying it would be contrary to market reforms.
The mounting labor dispute could discourage plans by GM and its
partner Fiat to acquire Daewoo once they complete due diligence
of the carmaker, Financial Times noted earlier this week.

According to Financial Times Daewoo needs Won450bn ($395m) in
emergency loans from creditors if it is to maintain operations
until the end of the year. Local Daewoo managers and staff at
some overseas operations, such as Daewoo's design centre in the
UK, have not been paid since last month. Creditors have demanded
a restructuring plan by next week before deciding on whether to
provide further financial support. But some banks have already
balked at extending further loans. Adding to Daewoo's woes was a
decision this week by at least 3,000 employees at Daewoo Motor
Sales, the company's local distribution arm, to tender letters of
resignation in protest over "unilateral" restructuring moves by
creditors. This is likely to cause a further drop in car sales.
"The only way for Daewoo's survival is sweeping self-rescue
efforts on the part of Daewoo employees," said Uhm Rak-yong, head
of Korea Development Bank, Daewoo's main creditor.

Daewoo Motor said it planned to cut 2,600 workers at its Polish
passenger car unit, Daewoo-FSO Motor, by spinning off several
non-manufacturing operations, such as plant security. However,
Krystyna Danilczyk, a spokeswoman for Daewoo FSO Motor denied the
report of mass lay-offs, which she called "completely
fabricated".  Poland's government is concerned about the disarray
at the Korean carmaker, the single biggest foreign investor in
the country with $1.55bn paid in at the end of last June,
according to the Polish Foreign Investment Agency. Daewoo Motors
is consulting creditors on consolidating overseas units that
stand little chance of being sold due to poor profitability, FT
said.


DAEWOO POLAND: Denies Report to Lay Off 2,600 Zeran FSO Employees
-----------------------------------------------------------------
Poland A.M. noted earlier this week that Daewoo-FSO has
officially denied reports it will lay off 2,600 Zeran FSO
employees. Under an agreement between the government and Daewoo,
this would require the approval of the Treasury Ministry.


PROCHNIK TEXTILE: Dismisses Finance Director for Company Losses
---------------------------------------------------------------
The board of directors of the Prochnik textile concern has
decided to dismiss the company's financial director as the result
of recent losses Poland A.M. noted earlier this week. Andrzej
Chwedczuk, to be replaced by Joanna Jezynska Ziolkowska, has been
charged by the board with lack of financial discipline within the
company and inappropriate management of its finances which caused
in their analysis, the losses Prochnik will record this year.

Following management changes, a new strategy will be implemented,
based, according to Prochnik president Zbigniew Przesmycki, on
better and more effective management of the firm's investments,
namely the shares of the five other companies Prochnik owns. The
market shares of these companies, Miranda, Jarlan, Dolwis,
Koronki and Wisan, have dropped significantly.


===========
S W E D E N
===========

RECULTURE: Submits Bankruptcy Application
-----------------------------------------
Nordic Business Report noted earlier this week that Swedish
recycling company reCulture AB has submitted a bankruptcy
application. The company said it had failed to secure additional
financing in connection with plans for a new facility on Gotland,
Sweden and that the financing process had seriously hurt its
liquidity.


YELLOWRENT.COM: Up for Closure
------------------------------
Agence France-Presse said earlier this week that online real
estate rental site Yellowrent.com has closed its doors after
going broke. "The current climate for both start-ups and
established Internet based companies that are looking for capital
is ice-cold," Yellowrent's founders wrote in a chilly letter to
partners and investors. Yellowrent's bankruptcy follows that of
Boxman, an Anglo-Swedish online music site launched in Sweden in
1997. It failed to raise the 440 million kronor (52 million
euros) needed after it was forced to cancel its stock market
launch in April.


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

BCCI: Claims Delayed Until Next Year
------------------------------------
The Times of London noted that a pounds 300 million civil suit to
be launched against the Bank of England by Deloitte & Touche, the
liquidator of Bank of Credit and Commerce International, has been
delayed until next year, dashing hopes of a Christmas pay-out for
creditors of the collapsed bank. The House of Lords was due to
rule next week on whether Deloitte could proceed with the case,
but has demanded that the claim be re-presented. Deloitte &
Touche claims that the Bank of England should have been more
vigilant, to protect BCCI's investors from the bank's eventual
collapse. The claim, alleging the tort of misfeasance, was thrown
out of the European Court earlier this year.

A source close to the case said that the hold-up was down to a
legal technicality and that Deloitte was confident that the claim
would be heard by the House of Lords early next year. "Creditors
have been waiting for this since 1991, another couple of months
in a case this complicated is really not that bad," the source
said. The Bank of England refused to comment. BCCI, which
collapsed under Pounds 9 billion of debt in 1991 after the
discovery of alleged money laundering scams and fraudulent
investment schemes, has 70,000 creditors, who have so far been
paid back 60 percent of their losses.


BARINGS:  Accountants Scheme has Laid Complaints
------------------------------------------------
Five-and-a-half years after Barings collapsed, the Accountants
Joint Disciplinary Scheme has laid complaints against Simon
Dominic Jones, former head of settlements and back office for
Barings Futures Singapore, The Daily Telegraph noted earlier this
week. Six weeks before the collapse he received a letter from
Simex warning of a pounds 74m shortfall, and the JDS has now
started to investigate his role. The next step is a tribunal to
hear the complaint. Eventually, a report will be published and
(if appropriate) disciplinary action taken.


BASS PUB: Up for Sale
---------------------
Nomura International, part of Japan's Nomura Securities, is
understood to have made an indicative offer for part of the Bass
pub estate, which was put up for sale by the company earlier this
month. The move comes as Whitbread, Bass's smaller rival, put its
3,000-strong pub estate on the market, to focus on its leisure
activities, Financial Times reported earlier this week.

Schroder Salomon Smith Barney is advising Bass on the sale. It is
understood that the investment bank has received several offers
of interest in the business and that the sale process is on
track. Schroder declined to comment on the identity of the
bidders. Nomura, which recently bought First Quench, the UK's
biggest off-license chain, from a Whitbread and Punch joint
venture, already controls about 10 percent of the UK's pubs
through a number of subsidiaries, including the Unique Pub
Company and Inntrepreneur. Enterprise Inns and Greene King, the
regional brewer and pub group, are thought to be interested in
some of the Bass pub estate. Punch Taverns, which already owns
about 5,000 pubs, is believed to have decided against bidding for
Bass's estate, having initially looked at it. Bass hopes to raise
about ?700m ($1bn) from the sale, but analysts believe that it is
more likely to achieve a figure closer to ?500m.


BRACKENRIDGE CO.: Liquidation Proceedings
------------------------------------------
Company Name: Brackenridge Co Ltd
Company No: IR
Appointed on: 21/09/00
Type: Members
Appointed by: Members
Liquidators: M Sargent IPno:
Firm Name: Brennan Governey & Co
Address: Kildress House Pembroke House Pembroke Row
City Postcode: Dublin 2


COUNTY CONTRACTORS: Liquidation Proceedings
--------------------------------------------
Company Name: County Contractors (Kent) Ltd
Company No: 3560432
Com. Business: Building Contractors
Appointed on: 21/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Simon G Paterson IPno: 6856
Firm Name: Moore Stephens Booth White
Address: Victory House Admiralty Place
City Postcode: Chatham ME4 4QU


DILLARD LTD: Liquidation Proceedings
-------------------------------------
Company Name: Dillard Ltd
Company No: IR
Appointed on: 21/09/00
Type: Members
Appointed by: Creditors
Liquidators: Michael McAteer IPno:
Firm Name: Foster McAteer
Address: 32 Upper Mount Street
City Postcode: Dublin 2


FRANK & SHIRLEY: Liquidation Proceedings
-----------------------------------------
Company Name: Frank & Shirleys Ltd
Company No: 3284690
Com. Business: Auctioneers/Book Sellers
Appointed on: 21/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Mark T Getliffe IPno: 8892
Firm Name: Cooper Lancaster Brewers
Address: 14 Wood Street
City Postcode: Bolton BL1 1DZ


GORDON & INNES: Pricewaterhouse Receivers
-----------------------------------------
Aberdeen Press & Journal(UK) said last week that Coopers
acknowledged that the Royal Bank of Scotland alone was owed
Pounds 7.6million by Fochabers-based Gordon & Innes (G&I).
Several hire-purchase companies are also owed six-figure sums,
while farmers who grew seed potatoes for G&I, which collapsed on
August 4, are due more than Pounds 1million. The receivers had
previously said G&I's debts were in excess of Pounds 7million.
The news emerged as a 50-strong group of G&I growers said it was
considering taking legal action against PricewaterhouseCoopers
for refusing to release the Pounds 1million growers claim is
theirs from a special cash pool account at the collapsed firm.

Receiver Laurie Manson maintains that the cash is an asset of
G&I. Growers' spokesman Jim Cruickshank, of Rothienorman, said
the group had sought advice from Quantum Claims, the Aberdeen-
based specialist. He said growers were frustrated as releasing
the cash would effectively clear their debts. G&I had pooled the
cash from selling seed potatoes on behalf of the growers into the
special account. It had then distributed the money on a regular
basis to farmers after deducting its processing, haulage and
commission costs. All payments stopped in March.

PricewaterhouseCoopers said its legal agents were still in
discussions with the growers on the cash pool. George Clark, the
managing director of Quantum Claims, said it had been instructed
by all the growers, except one, to pursue the issue. It is
waiting for advice from legal counsel. Provided there is legal
support, Mr Clark said: "These growers have identified that the
money does belong to them and we will take action and raise an
action on that basis." Unsecured creditors include utility
companies, hire-purchase companies, farmers and landowners who
rented ground to G&I to grow potatoes. Receiver Miss Manson did
not have a figure for G&I's total liabilities, but acknowledged
it was beginning to look as if those could top Pounds 10million.
Miss Manson said unsecured creditors are unlikely to get any
money back.

The receiver has already sold G&I's core seed potato business and
shares in its overseas ventures in the Baltic States and Thailand
to the Doncaster-based Higgins Group, for an undisclosed sum. She
is hopeful Ardgye Farm, between Elgin and Forres, which was owned
by a G&I subsidiary, will also be sold. The closing date is
October 20. There have been over 180 expressions of interest.
Miss Manson said the receiver had a duty within six months of
being called to report to the Department of Trade and Industry
any evidence of wrong doing in any receivership. The receivership
affects G&I and four of its trading subsidiaries - G&I Transport,
G&I Sprayers, Interseed and Ardgye Farms. Former G&I managing
director, Alistair Roy, left the UK the day after the firm
collapsed for a holiday in Southern France with his wife, Louise,
a GP in Forres, and family. They stayed in a luxury villa, near
Ceret. Mr Roy, who has since returned to Scotland, strenuously
denied any involvement in the villa's ownership.

He said he had lost everything in the collapse, including his
home at Ardgye, his job and the business he had built over 20
years. Receivers are holding five statutory meetings for
unsecured creditors of the five collapsed G&I firms in the
Britannia Hotel, Bucksburn, Aberdeen, on November 1. The meetings
are being held throughout the day. G&I's collapse was blamed on a
crash in the potato market and the strength of sterling, which
hit export sales.


INDEPENDENT MORTGAGE: Liquidation Proceedings
----------------------------------------------
Company Name: Independent Mortgage Brokers Ltd
Company No: 3453011
Com. Business: Mortgage Brokers
Appointed on: 21/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Bernard Hoffman IPno: 1593 Ian Yerrill 8924
Firm Name: Gerald Edelman
Address: Suite 105 Kent House Station Road
City Postcode: Ashford TN23 1PP


MG ROVER: Tie-up with the Logistics Arm of Caterpillar
------------------------------------------------------
MG Rover, the loss making carmaker, announced a global
partnership with the logistics arm of Caterpillar, the US
industrial group, to cover distribution of car parts, Financial
Times noted earlier this week. The move represents a blow for
Unipart, the privately-owned UK parts distributor, which has been
Rover's logistics partner since the mid-1980s. BMW, Rover's
former German parent, had already served notice to Unipart that
its contract would not be renewed in February 2002. Unipart,
however, had tendered to win back the contract. The decision to
award the business to Caterpillar follows BMW's abrupt decision
to break up Rover Group earlier this year.

According to Financial Times, Caterpillar Logistics Services
known as Cat Logisitics, will take over parts distribution,
marketing, purchasing and customer services. Unlike the Unipart
deal, MG Rover will enjoy most of the profits from the sale and
distribution of after market parts. Keith Howe, chief executive
of MG Rover, said: "With a turnover of around ?250m a year, parts
represent a key additional revenue stream which we intend to
develop fully." It is thought that profit margins in after market
parts are almost 10 percent, compared with about 2 percent in car
manufacturing.

Unipart said the Rover business had been a beneficial partnership
for both companies, but claimed that it was expanding its
operations in other areas. "The company is still growing and
we're still winning significant contracts," Unipart said. In
spite of the new deal, Unipart said it still expected to supply
Rover dealers with non-branded parts from other component
manufacturers. The company declined to specify what proportion of
its revenues or profit depended on the Rover contract.


MG ROVER: To Call on Arbitrators
--------------------------------
Financial Times said earlier this week that BMW and MG Rover are
close to nominating an independent arbitrator to settle
differences over the value of assets transferred from the German
carmaker to its former British subsidiary. It is understood that
Ernst & Young, the auditing firm, will be called in to negotiate
a settlement that will allow BMW and MG Rover to sign completion
accounts following the break-up of Rover Group earlier this year.
Without completion accounts, MG Rover cannot produce a balance
sheet. But the accounts may not be signed off before the year-
end, an unwelcome delay for the loss-making carmaker.

It is also thought that a proposed share distribution to Rover
workers may not proceed until the accounts are finalized or
employee share trusts are set up, Ft said. MG Rover's new
management, which is planning to offer workers 35 percent of the
company, has questioned the ?740m asset valuation placed on the
business by BMW. It emerged that BMW has also failed to sign
completion accounts with Ford over its E2.9bn acquisition of Land
Rover. Bob Dover, chief executive of Land Rover, said Ford would
review the negotiations at the end of November. "The valuation
differences are not huge - tens of millions of pounds - and we
are proceeding slowly to a conclusion," he added.

At MG Rover, by contrast, the gap in asset valuations is thought
to be worth almost ?150m. The differences centre on the value of
Rover stock, contract leases and certain fixed assets at the
Longbridge plant, near Birmingham.

BMW on Wednesday scaled back suggestions, which emerged at the
Birmingham international motor show, that it would not consider
any further payment to MG Rover. "We do not envisage paying more
money, but we have to wait for the completion accounts to be
agreed," said one director. Officials indicated that it was
almost inevitable that Ernst & Young would have to arbitrate on
some aspects of the Rover valuation. "This will resolved by
arbitration if necessary and talks are progressing on that," said
one senior Rover executive. MG Rover, which is to receive a
separate ?500m interest-free credit from BMW for on-going
operations, is anxious to avoid any contingent liabilities
arising from incorrect asset values. Nevertheless, the alleged
differences between the two companies are not expected to
jeopardize MG Rover's ongoing production plans or its bid to
improve cash flow.


NOBLECLEAR LTD: Liquidation Proceedings
----------------------------------------
Company Name: Nobleclear Ltd
Company No: 2551466
Com. Business: Property Development
Appointed on: 21/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Nicholas J Millar IPno: 7899
Firm Name: Kingston Smith & Partners
Address: Devonshire House 60 Goswell Road
City Postcode: London EC1M 7AD


OAK PROPERTIES: Liquidation Proceedings
----------------------------------------
Company Name: Oak Properties & Investments Ltd
Company No: IR
Appointed on: 21/09/00
Type: Members
Appointed by: Members
Liquidators: Aideen Neary IPno:
Firm Name: David Carton & Co
Address: Hoar Rock Hill Balbriggan Road
City Postcode: Co Dublin


PULSE GRAPHICS: Liquidation Proceedings
----------------------------------------
Company Name: Pulse Graphics Ltd
Company No: 2692229
Com. Business: Reprographics Services
Appointed on: 21/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Simon G Paterson IPno: 6856
Firm Name: Moore Stephens Booth White
Address: Victory House Admiralty Place
City Postcode: Chatham ME4 4QU


TENNET: Dutch to Buy Power Grid
-------------------------------
The Dutch government agreed to buy the country's high voltage
national power grid in a bid to improve the electricity supply
market liberalization process. Under the plan the companies that
own the grid - EPZ, EPON, EZH and UNA - will be paid a total of
Fl2.55bn ($976m) for the system, Financial Times noted earlier
this week. The decision marks a change from a previous proposal
by Annemarie Jorritsma, the Dutch economic minister, to buy only
51 percent of the network.

"The four companies that currently own the network were keen to
sell the whole stake and we realized there was increasing
parliamentary support for this," said an official from the
ministry. The purchase follows criticism that full market opening
is being held back by a lack of import capacity in the grid due
to long-standing fixed-price power purchase contracts entered
into by the companies prior to liberalization. There have also
been complaints that the four companies do not currently have to
compete against each other. "On the one hand the market is
liberalized but on the other hand we still have all the problems
of the past. The new arrangement will allow us to make a fresh
start," said the official.

The companies had tried to sell off the long term contracts, one
of which does not end until 2009, but had been unable to find a
buyer because the price of electricity was no longer competitive
with liberalized market rates. In return for the agreement the
companies have now said they will free up 600MW of import
capacity by canceling a contract with Electricite de France, the
French national power group. The groups will be responsible for
paying any financial penalty for early cancellation of the
contract, which is due to run until March 2002. They will also
have to compete against each other in the open market from the
start of next year, FT said.

The grid, known as Tennet, is owned by an umbrella company called
SEP which groups the four generating companies. Under a plan
drawn up by a Dutch government commission last year SEP's
liabilities for the long term contracts are split 29.5 percent to
EPON, 28.5 percent to EPZ, 19.5 percent to EZH and 22.5 percent
to UNA. The four companies declined to make any comment on the
agreement ahead of a joint press conference scheduled.


TRAVELLERS BOOK: Liquidation Proceedings
-----------------------------------------
Company Name: Travellers Book Store Ltd - The
Company No: 3346851
Com. Business: Internet Book Sales
Appointed on: 21/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Douglas P Walker IPno: 2649
Firm Name: Walker & Co
Address: 42 George Street
City Postcode: Reading RG1 7NT


QXL: Cash-Strapped Online Auctioneer in Talks to Clinch Alliance
----------------------------------------------------------------
QXL, the online auctioneer, is in talks aimed at clinching a deal
with a Web portal or Internet service provider within the next
three months. It is understood that QXL, which analysts say has
only around 18 months of cash left on present rates of cash burn,
has put plans for tapping the capital markets to one side, in
favor of achieving a strategic alliance with another internet
company, the Independent reported earlier this week.

While QXL has considered raising money through a rights issue or
share placing, the volatility that has afflicted London
technology shares over the last week has seen it focus its
efforts on a strategic alliance or merger. Industry sources said
the group has had talks with several private equity groups this
year.

QXL, which is currently in a closed period, declined to comment
on speculation that the group has only 12 months cash left and
was still looking at a rights issue. Phil Clark, an Internet
analyst at Goldman Sachs, said: "Portals and ISPs are the most
obvious candidates given what QXL could achieve through such a
tie-up. About 60 percent of QXL's operating costs are in sales
and marketing, expenditure which could be slashed if the group
merged with a company like Freeserve.


QXL: In Cash Hunt
-----------------
QXL the online auctioneer is understood to be looking for a
partner to inject further cash into the company following the
rapid decline in its share price in recent months, Financial
Times reported earlier this week. A source close to QXL said cash
had clearly become a concern for the market. QXL was keen to
bolster its cash position before the year end to reassure
investors and to refocus their attention on the performance of
the operating business.

The shares have fallen almost 96 percent from their high of 744p
this year to 32-1/2p in spite of a 9-3/4p rally over the last two
days. QXL is understood to have between ?40m and ?50m of cash.
This will last for at least twelve months, but not long enough to
take it through to its expected break even in 2003. QXL is
understood to be looking for a strategic partner or financial
investors to inject money in return for an equity stake.
At the current share price and with the volatile technology
market conditions, raising money on the public markets has
effectively been ruled out.

Financial Times said that QXL executives were unavailable for
comment. But QXL is believed to have talked to a number of
companies - including internet service providers - and
discussions are at a relatively early stage. Insiders said an
outright sale of the business was unlikely - although a bid could
be tempting at the depressed share price. The moves by QXL come
as Wanadoo the French ISP which is looking at ways to expand its
e-commerce and advertising revenues is understood to have held
early stage talks with iBazar, a French rival to QXL.


VAN WORLD: Liquidation Proceedings
-----------------------------------
Company Name: Van World (UK) Ltd
Company No: 3805702
Com. Business: Motor Vehicles
Appointed on: 21/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Colin T Burke IPno: 8803
Firm Name: Milner Boardman & Partners
Address: Century House Ashley Road
City Postcode: Hale WA15 9TG



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.


             * * * End of Transmission * * *