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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 31, 2000, Vol. 1, No. 124


                       Headlines

A U S T R I A

LAUDA AIR:  Austrian Airlines Wants Control of Lauda


B E L G I U M

VOBIS: Court Declares Chain Insolvent


C Z E C H   R E P U B L I C

ALIATEL: Set to Raise Capital
MASOKOMBINAT KLATOVNY: Bankruptcy Decision Overturned
PRAZSKE PIVOVARY:  Hard Times Continue
ZELEZARNY A DRATOVNY:  Bankruptcy Petitions Still Loom


G E R M A N Y

ROLAND ERNST:  Legal Proceedings Start
GEBRUDER KOMMERLING: HT Troplast AG Acquires Insolvent Profiles


H U N G A R Y

VOJVODANSKA BANKA:  Mehib Restructures Debt


I R E L A N D

CO KILDARE:  Grain Firm Loses Liquidation Fight


P O L A N D

DAEWOO POLAND:  Polish Government Pledges to Help
DAEWOO POLAND:  Volkswagen in Talks Over Polish Plant
DAEWOO FSO: Last-ditch Effort to Continue to be Independent
STATE RAILWAYS:  PKP Set for First Round of Restructuring Plans


R U S S I A

DALMOREPRODUKT: Loses USD 12 Mln
ROSKA: Milk Company to Examine Reorganization Plan on November 5


S W E D E N

ADCORE: Posts a Loss of 114.3 Million Swedish Crowns


U N I T E D   K I N G D O M

ARDERSIER BUILDING: Liquidation Proceedings
AQUARIUS: Cheap Imports May Force Closure
BODY POSITIVE: Liquidation Proceedings
BRITAX: To Look for a Buyer
BUSINESS AUTOMATION: Liquidation Proceedings

C COLLIN: Liquidation Proceedings
CHANNELFLY.COM:  Posts Maiden Year's Loss of 2.07 Million Pounds
DELTAREGIS (HOLDINGS): Liquidation Proceedings
GEORGICS V: Liquidation Proceedings
GRE INTERIORS: Liquidation Proceedings

HARTSHELL LTD: Liquidation Proceedings
ICI: Chemicals Group in Sell-Off Talks
J & M ENGINEERING: Liquidation Proceedings
LITHO COLOUR: Liquidation Proceedings
MG ROVER: Workers to Vote on Pay Deal
MG ROVER: Towers Admits His Role as Steward


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

LAUDA AIR:  Austrian Airlines Wants Control of Lauda
----------------------------------------------------
Reuters reported last week that due to high fuel costs and a
strong dollar Lauda is heading for a deep operating loss.
Austrian Airlines is planning to take control of struggling
domestic rival Lauda Air in a move set to escalate its battle
with Lauda Air founder and Formula One triple world champion Niki
Lauda. If Austrian Airlines and Lufthansa agree on a sale,
Austrian Airlines would be required under Austrian law to make a
public offer for the 14 percent of Lauda shares in free float.

"We need greater control in order to push through the measures
that we believe can benefit the group as a whole," Austrian
Airlines Co-Chief Executive Mario Rehulka said. Niki Lauda says
the airline can offset a 558 million schillings operating loss in
the year to October 31 through a 1.1 billion schillings sale-and-
leaseback deal on five aircraft. It sees Lauda posting a one-
billion schillings loss.


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

VOBIS: Court Declares Chain Insolvent
-------------------------------------
The Liege commercial court in Belgium has declared Belgian
computer retail chain Vobis insolvent, La Libre Belgique & World
Reporter noted on Thursday last week. The move will lead to 60
job losses without taking into account the franchised outlets.
Launched by a German multinational, the chain had come under
French control within the Hemingway group. Administrators have
excluded the possibility of selling the chain, although two
foreign candidates have declared an interest. The chain's
liabilities are over BFr100m.


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

ALIATEL: Set to Raise Capital
-----------------------------
CTK & Euromoney reported last week that Aliatel, the telecoms
company will have to raise share capital in order to strengthen
its resources just until the end of November. Aliatel provides
telecoms services on the optical infrastructure owned by regional
power distributors. Shareholders are in need to raise the
capital, which amounts to Kc2.5 billion.

The final decision will be in early November. Since the
conclusion of talks on a new strategic partner for Aliatel, the
representatives of the company and its shareholders are reluctant
to comment. MfD says that Britain's Energis is the most likely
candidate, as it is the only bidder for Aliatel that has retained
its interest since the search for an investor began in the
spring, CTK & Euromoney reports.


MASOKOMBINAT KLATOVNY: Bankruptcy Decision Overturned
-----------------------------------------------------
A Prague court yesterday cancelled a bankruptcy declaration
against Masokombinat Klatovy following an appeal by the meat
processor's owner, Maso Plana, Czech A.M. reported last week.
Maso, a subsidiary of Swiss ATA Holding, argued that a bankruptcy
petition filed by an investor was illegitimate as it was based on
a false claim.


PRAZSKE PIVOVARY:  Hard Times Continue
--------------------------------------
Czech A.M. noted last week that Prazske Pivovary, recently sold
by UK-based Bass to Belgian Interbrew, lost Kc 149 mln in the
first half and now has total accumulated losses of Kc 2 bln.
Analysts say prolonging the brewer's existence is pointless if it
cannot generate enough profit to cover loan payments.


ZELEZARNY A DRATOVNY:  Bankruptcy Petitions Still Loom
------------------------------------------------------
Zelezarny a Dratovny Bohum¡n has been thus far unable to convince
Trinecke Zelezarny to withdrawal a bankruptcy proposal that TZ
and majority owner Moravia Steel filed against it, Czech A.M.
noted last week. ZDB said it would present a proposal to TZ when
representatives of the two metallurgy concerns meet next week.
Nova Hut filed a petition of its own against ZDB last week.


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

ROLAND ERNST:  Legal Proceedings Start
--------------------------------------
Frankfurter Allgemeine Zeitung & World Reporter reported last
week that the Bochum public prosecutor has begun legal
proceedings against property mogul Roland Ernst, according to an
official spokesman. Roland Ernst is alleged to have committed
fraud, embezzlement and bribery and aided and abbetted tax
evasion, according to a report in Der Spiegel magazine. Ernst is
supposed to have paid, amongst others, two former Deutsche Bahn
managers bribes of several million in order to win contracts.
They are also being accused of corruption and tax evasion.

According to previous reports, Ernst purportedly owes the banks a
triple digit million figure. Ernst was investigated in 1996
regarding embezzlement in relation to the bankruptcy of East
German dairy Sachsenmilch and was fined DM 630,000.


GEBRUDER KOMMERLING: HT Troplast AG Acquires Insolvent Profiles
---------------------------------------------------------------
Plastic News noted earlier last week that the German profile
extruder HT Troplast AG, has acquired the insolvent profiles
business of Gebruder Kommerling Kunststoffwerke GmbH. The deal
gives Troplast, Germany's top window profile supplier and a
regional leader, with a 23 percent market share in the European
Union. The European Union's monopoly approved the acquisition on
Sept. 29 by control authorities.

HT Troplast of Troisdorf, Germany, part of Rutgers AG of Essen,
Germany, agreed on the appointment of Jobst Wellensiek, the
insolvency receiver administering Kommerling's assets. Kommerling
of Pirmasens, Germany, sustained a serious financial blow last
year, losing the equivalent of $16 to $20 million. Creditor banks
took control of the German extruder and in January put the
company up for sale. Troplast bought Kommerling's profile and
sheet extrusion operations; those include profiles plants at
Pirmasens as well as in Spain, France, Italy, Poland, Russia and
China.

"With a joint market share of 23 percent within the EU, our four
window profile brands KBE, Knipping, Kommerling and Trocal head
the rankings and have good prospects of further developing this
leading position in the market," Troplast said. Each brand will
continue to operate independently. Troplast acquired the KBE and
Knipping brands last year. In its agreement with the receiver,
Troplast said it would safeguard Kommerling's plants, jobs and
long-term business partnerships.


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

VOJVODANSKA BANKA:  Mehib Restructures Debt
---------------------------------------------
The Hungarian Export Credit Insurance Rt (Mehib) signed an
agreement with Yugoslavian bank Vojvodanska Banka, said MEHIB
Deputy CEO Eszter Huber, Hungary AM noted last week. MEHIB gave
Vojvodanska Banka a two-year forbearance for the repayment of its
debt of some $5 million. The Yugoslavian bank offered its foreign
assets and shares in different credit institutions as bail.


=============
I R E L A N D
=============

CO KILDARE:  Grain Firm Loses Liquidation Fight
-----------------------------------------------
The Irish Times noted last week that the High Court appointed a
provisional liquidator to a Co Kildare grain merchant that
employs 40 people and is alleged to have liabilities of more than
20 million pounds (euro 25.39 million). The judge made his
decision after hearing submissions on behalf of Edward Kavanagh,
Manor Mills, Maynooth, and some of its creditors. More than 30
creditors supported an application for appointment of a
provisional liquidator while the company argued the court should
first have an opportunity to put a scheme of arrangement before
creditors.

In an affidavit, Mr Edward Kavanagh, a director of the company,
said its problems had arisen through a recession in the pig and
poultry industries that began last year and had worsened since.
Mr John O'Donnell SC, for Quinns of Baltinglass, Co Wicklow, a
supplier of the company which claims to be owed 966,000 pounds,
moved the application for appointment of a provisional
liquidator. In affidavits, Mr Liam Quinn, a director of Quinns,
said it was clear that Kavanaghs was hopelessly insolvent, with
liabilities of more than 20 million pounds. It had assets of 14
million pounds and admitted debtors of 5.5 million pounds. He was
aware the company had appointed Mr John McStay, an insolvency
expert, as an adviser.

In his affidavit, Mr Kavanagh said the company found itself in a
situation where it could not increase prices and customers were
going out of business or unable to pay their debts. It had tried
to sell the goodwill of the business but had proved unsuccessful.
On October 20th last, the board of directors had resolved the
company would have to cease trading. Its bank account was frozen
last Friday.


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

DAEWOO POLAND:  Polish Government Pledges to Help
-------------------------------------------------
The Polish government pledged to help Korea's troubled auto maker
Daewoo in restructuring its large factories in Poland, in which
the state treasury owns a minority stake and a golden sharen
Reuters noted last week. "Our ambitions are not to take control
of the firms, but back their management in attempts to rescue
them," Deputy Economy Minister Edward Nowak told a news
conference. Daewoo's plans to cut the workforce at its Polish
firms, which include passenger car maker Daewoo-FSO and van
manufacturer Daewoo-Lublin, have created a political storm, with
some trade unions demanding Poland renationalise the plants.

Nowak said a government delegation would travel to Korea early
next month to discuss measures to boost the flagging Daewoo
business in Poland and possible state aid. "We are travelling to
Korea to discuss ways we can help, by rearranging investment and
debt schedules, creating guarantees and helping with bridge
financing arrangements to improve the well-being of Daewoo's
operations here," Nowak added. Daewoo's Warsaw plant may face
futher job cuts and is considering suspending production for
three weeks. Nowak said that at its Polish subsidiaries Daewoo
now employed about 25,000 workers and about 50,000 jobs depend on
its operations.

Poland holds a golden share in Daewoo's operations, which
theoretically allows it to veto job cutting or plant closing
decisions, but Nowak said he did not plan to use this clause. "We
want to help iron out a restructuring plan not go to Seoul with
threats that nobody needs," he said. Apart from troubles at their
parent company, Daewoo's Polish subsidiaries have been hit by
falling local car sales, which declined by 19 percent in the
first nine months of 2000. Daewoo's sales shrank even more
quickly.


DAEWOO POLAND:  Volkswagen in Talks Over Polish Plant
------------------------------------------------------
The German car maker Volkswagen is in talks with ailing South
Korean Daewoo Motor for a van assembly plant in southeastern
Poland where 1,200 jobs are to be slashed, a top Polish official
said. "There are talks between Volkswagen and Daewoo concerning
the factory in Lublin," Deputy Economics Minister Edward Nowak
was quoted as saying by the Polish news agency PAP. All of the
Lublin facility could be sold or just parts of it, he added.
Daewoo officials at the Lublin factory said they were unaware of
any talks with Volkswagen, Agence France Presse reported earlier
last week.

With sales in Poland down by one-third in the first nine months
of this year, Daewoo officials in Seoul have said that 1,200 of
6,200 jobs at the van assembly plant would be slashed, and that
2,600 of 5,500 workers at the FSO car plant in Warsaw would be
laid off. This week Daewoo decided to close the FSO factory for
three weeks beginning Monday Oct.30 to reduce stocks.


DAEWOO FSO: Last-ditch Effort to Continue to be Independent
-----------------------------------------------------------
Daewoo FSO is likely to close for three weeks as part of a last-
ditch effort to survive independent of the Polish company's debt-
ridden parent, Daewoo Motor Co. of South Korea. Daewoo FSO's
Warsaw operations employ 5,569 plant workers and a further 6,500
people as support staff. Leaders of the Solidarity trade union,
panicked at the likely suspension and a separate planned layoff
of 1,200 workers in Lublin, sent a strongly worded letter to the
Polish government demanding action to rescue the factory, which
was state-owned during communism.

Jerzy Wozniak, who leads the plant's union, said, "It is a
mistake to think that we want to make this company state-owned
again. We just want the government to get interested in the
situation of people working here." Poland's Treasury still owns 9
percent of FSO, The Wall Street Journal noted last week.

FSO workers blame the decline on Poland's high excise tax and an
influx of used cars from abroad. Meanwhile, analysts fault
peaking demand for new cars in Poland and faltering consumer
confidence in Daewoo. A Treasury representative said the
government will meet with the unions next week. In early
November, government officials plan to visit Seoul, seeking
answers from Daewoo and its creditors about the likely fate of
the Polish operation, which last year produced 220,000 cars.


STATE RAILWAYS:  PKP Set for First Round of Restructuring Plans
---------------------------------------------------------------
Polish State Railways (PKP) is set to start its first round of
commercial restructuring at the end of the month as part of
government plans to eventually fully privatize the state-run
monopoly, Warsaw Business Journal noted earlier last week. A
legal statute laying out plans for the company's complete
restructuring and privatization is set for Oct. 27. The company
then has three months to become a commercial entity, the first
stage of plans to sell off the loss-making state firm to a number
of private commercial companies. "Commercializing means the
transformation of PKP into a share company, in which the state
treasury is the only shareholder," said Roman Hajdrowski, press
spokesman for PKP. He said commercial restructuring would be the
first step of the process, followed later by privatization.

On Oct. 13, the PKP council accepted a statute for the future
restructured role of the company. From January, the firm will
also operate as a holding company for independent entities,
Hajdrowski said. Immediate plans are to split PKP into three
companies, but there are also moves to create more, industry
sources said. Plans are already underway to create a separate
company dealing with express or intercity trains. Also, small
companies such as Warszawska Kolej Dojazdowa (WKD) will be
created within the PKP holding group. "They will be privatized
first," Hajdrowski said. He said PKP had been working intensively
for some time to meet the deadlines on restructuring. "PKP has
been preparing the statutes for (future) companies, and has also
been preparing business plans, so solutions can be implemented as
efficiently and quickly as possible," Hajdrowski said.

The commercial restructuring program follows recent negotiations
with the European Bank for Reconstruction and Development (EBRD)
for a e100 million loan. The company is also in talks with the
World Bank for an extra $150 million loan. A preliminary draft of
the contract with the EBRD has already been prepared, Hajdrowski
said. But he added that talks with the World Bank were still some
way off before a loan could be secured. "The loans will be used
to finance the processes connected with restructuring
employment," Hajdrowski said. With the privatization of PKP, it's
estimated that within two years 30,000 staff out of the current
175,000 workforce will be made redundant, he said. He added that
PKP would need zl. 1.1 billion ($241 million) for the
restructuring of its employee network. PKP, which had debts
amounting to zl. 6.3 billion ($1.4 billion) at the end of July,
said it would repay the loans with bonds it's expecting to issue
within the next two years. According to the Oct. 27 law, bonds
worth up to zl. 3.9 billion ($848 million) will be issued to
repay the loans.


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

DALMOREPRODUKT: Loses USD 12 Mln
--------------------------------
According to Invo-Nova, the Russian State Fishery Committee
lifted sanctions against the DALMOREPRODUKT company on October
25. Those sanctions were imposed on the company on October 12 and
ten vessels were stopped dead. Company's losses from that move
were estimated at $12 million, Skrin Issuer noted last week.


ROSKA: Milk Company to Examine Reorganization Plan on November 5
----------------------------------------------------------------
At the EGM on Nov. 5, 2000, JSC Petersburg milk company Roska
(PMK-Roska) will examine the question of the company's
reorganization. The reorganization calls for merging PMK-Roska
with several enterprises. As the result of merger will be created
a new Corporation Roska, Skrin Issuer noted last week. The list
of shareholders to participate at the EGM was compiled as of Oct.
6, 2000.


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

ADCORE: Posts a Loss of 114.3 Million Swedish Crowns
----------------------------------------------------
Reuters noted last week that the Swedish Internet consultancy
Adcore posted unexpectedly wide nine month losses confirming the
national sector's weakness after batch of disappointing results
and a profit warning. Adcore posted a loss after financial items
of 114.3 million Swedish crowns ($11.22 million) compared to 99
million crowns predicted by a Reuters poll, though sales jumped
to 877.2 million crowns from 368.9 million year-on-year. Markets
battered shares in Europe's top three Internet consultants, all
Swedish, after Framfab warned on profits and Icon Medialab and
Cell Network posted worse than expected nine-month losses.

Analysts blamed increased competition in the Stockholm hothouse
of Internet consultancies and longer sales cycles as orders grew
in size and complexity, a gloomy scene darkened further by
Adcore's results. "Competition for national projects in Sweden
has intensified sharply, resulting in pricing pressure with up to
17 companies bidding for the same national projects compared to
five to seven six months ago," investment bank Lehman Brothers
said in a research note.


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

ARDERSIER BUILDING: Liquidation Proceedings
--------------------------------------------
Company Name: Ardersier Building Services Ltd
Company No: SC
Com. Business:
Appointed on: 27/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: J M Hall IPno:
Firm Name: BKR Haines Watts
Address: 9 Coates Crescent
City Postcode: Edinburgh EH3 7AL


AQUARIUS: Cheap Imports May Force Closure
-----------------------------------------
Furniture maker Aquarius says it may be forced to close its Pine
Design bathroom accessories factory because of competition from
cheap imports, which could cost 100 jobs at the Staffordshire
plant, Ananova reports this week.

Aquarius chairman Tony Gartland said: "Pine Design's market has
become increasingly competitive and severe margin pressure has
been experienced due to imported goods." He said, if the factory
were to close, this would cost a further ?2 million in one-off
costs. He also warned that the group might have to close other
factories to combat the tough trading conditions.

The company, which supplies upmarket furniture for large retail
customers such as Harrods and Selfridges, has six operations in
Yorkshire, the Midlands and the South East, employing nearly 900
people.


BODY POSITIVE: Liquidation Proceedings
---------------------------------------
Company Name: Body Positive Ltd
Company No: 2164911
Com. Business: Charity
Appointed on: 27/09/00
Type: Creditors
Appointed by: Creditors
Liquidators: P S Dunn IPno: 2368
Firm Name: Horwath Clark Whitehill & Co
Address: Sherlock House 7 Kenrick Place
City Postcode: London W1U 6HE


BRITAX: To Look for a Buyer
---------------------------
David Newlands, the chairman of Tomkins who is expected to
preside over the conglomerate's break-up, is under pressure to
repeat the trick at Britax. Britax shares have failed to recover
since the revelation in August of a 25m pounds hit caused largely
by accounting problems at its aircraft interior systems
subsidiary, The Independent reports yesterday. Perry has taken
the opportunity to build up a 1.69 percent stake and is expected
to build on the holding if Britax shares remain depressed.

Mr Newlands joined Britax last year with a brief to conduct a
strategic review of the business. The first stage of the new era
at Britax will begin tomorrow when Bernard Brogan takes the helm
as chief executive. He is replacing Richard Marton, with the firm
since 1973. If Britax is put up for sale, it is expected to
attract the attention of venture capitalists eager to take it
private.

Mr Newlands, who previously worked for the advertising agency
Saatchi & Saatchi, is currently occupied with the task of solving
the crisis at Tomkins left by the departure of chief executive
Greg Hutchings. He resigned two weeks ago amid allegations of
corporate excess including the use of company jets and flats by
directors for private use. Mr Newlands is supervising a strategic
review of Tomkins' assortment of businesses which is expected to
lead to the break-up of the conglomerate.


BUSINESS AUTOMATION: Liquidation Proceedings
---------------------------------------------
Company Name: Business Automation (Holdings) Ltd
Company No: 3193794
Com. Business: Holding Co
Appointed on: 27/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Melvyn J Carter IPno: 5773
Firm Name: Carter Backer Winter
Address: Hill House Highgate Hill
City Postcode: London N19 5UU


C COLLIN: Liquidation Proceedings
----------------------------------
Company Name: C Collin Ltd
Company No: 315852
Com. Business: Property Development
Appointed on: 27/09/00
Type: Members
Appointed by: Members
Liquidators: Andrew White IPno: 8066 Susan A Maund 8923
Firm Name: BDO Stoy Hayward
Address: Nile House Nile Street
City Postcode: Brighton BN1 1JB


CHANNELFLY.COM:  Posts Maiden Year's Loss of 2.07 Million Pounds
----------------------------------------------------------------
The Times reports this week that channelfly.com (Internet
services) reported a maiden year's loss of 2.07 million pounds.
There is no dividend.


DELTAREGIS (HOLDINGS): Liquidation Proceedings
-----------------------------------------------
Company Name: Deltaregis (Holdings) Ltd
Company No: 2945007
Com. Business: Holding Co
Appointed on: 27/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: David P Hudson IPno: 8977
Firm Name: Begbies Traynor
Address: The Old Exchange 234 Southchurch Road
City Postcode: Southend-on-Sea SS1 2EG


GEORGICS V: Liquidation Proceedings
----------------------------------------
Company Name: Georgics V Ltd
Company No: 2393024
Appointed on: 27/09/00
Type: Members
Appointed by: Members
Liquidators: Paul R Boyle IPno: 8897
Firm Name: Harrisons
Address: 43 South Street
City Postcode: Reading RG1 4QU


GRE INTERIORS: Liquidation Proceedings
---------------------------------------
Company Name: GRE Interiors Ltd
Company No: 3513891
Com. Business: Commercial Property Refurbishments
Appointed on: 27/09/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: T Papanicola IPno: 5496
Firm Name: Langley & Partners
Address: Langley House Park Road
City Postcode: London N2 8EX


HARTSHELL LTD: Liquidation Proceedings
---------------------------------------
Company Name: Hartshell Ltd
Previous Name: Queen Annes Gate Asset Management
Company No: 2374502
Com. Business: Investment Co
Appointed on: 27/09/00
Type: Members
Appointed by: Members
Liquidators: Gerald I Rankin IPno: 5184 Nicholas E Reed 1168
Firm Name: PricewaterhouseCoopers
Address: 9 Bond Court
City Postcode: Leeds LS1 2SN


ICI: Chemicals Group in Sell-Off Talks
--------------------------------------
Dulux Paint-to-chemicals group ICI is in talks about selling off
the remainder of its UK industrial chemical operations, Ananova
reports yesterday. The company has been undergoing a massive
restructuring operation since 1997, moving itself being from a
high-volume bulk chemicals business to a specialty products and
paints business. The shift has seen ICI sell off large chunks of
its non-core businesses around the world.

The latest disposal would see it sell off a parcel of business to
a privately owned chemicals group called Ineos in a deal
estimated to be worth ?300 million. The sale would be the last
major UK disposal within its restructuring program - which was
prompted by its acquisition of Unilever's speciality chemicals
business three years ago. The businesses in the spotlight are
believed to include ICI's Klea CFC replacement business, silica
additives group Crosfield and its halochemicals division.

In total, the businesses employ more than 3,000 people worldwide,
with two-thirds based in the UK in Runcorn and Warrington in
Cheshire. However, should the sale go through, it is not expected
to mean any job cuts or redundancies. Speculation is growing the
company will announce the disposals when it unveils a third
quarter trading update. But, as the talks are ongoing, there is
no guarantee a deal will be struck by then. A spokesman for ICI
said the company was "neither able to confirm or deny" reports of
the sale.


J & M ENGINEERING: Liquidation Proceedings
-------------------------------------------
Company Name: J & M Engineering Ltd
Company No: IR
Appointed on: 27/09/00
Type: Members
Appointed by: Members
Liquidators: Maurice Fitzgerald IPno:
Firm Name: Fitzgerald Power
Address: Greyfriars
City Postcode: Waterford


LITHO COLOUR: Liquidation Proceedings
--------------------------------------
Company Name: Litho Colour Plates Ltd
Company No: IR
Appointed on: 27/09/00
Type: Members
Appointed by: Creditors
Liquidators: James Clancy IPno:
Firm Name: James Clancy & Associates
Address: Larch House 33 Northumberland Avenue
City Postcode: Dum Laoghaire


MG ROVER: Workers to Vote on Pay Deal
-------------------------------------
Thousands of workers at MG Rover will vote this week on a pay
offer worth almost 4 percent. Under the proposed deal the average
weekly pay of a dayshift worker would rise from November 1 by
more than 12 to 333 pounds, and by a further 8 pounds from
January, Ananova reported yesterday. The company, which last week
accepted the resignation of two non-executive directors, is also
planning to "buy out" a reduced hours agreement.

Employees' hours were to have been cut from the present 36 to 35.
But under the proposed deal, the working week would revert to 37
hours. Workplace ballots will be held at the company's Longbridge
plant in Birmingham over the next three days and the result is
expected at the end of the week. The 5,500 Longbridge employees
return to work on Monday following a week-long autumn shutdown.


MG ROVER: Towers Admits His Role as Steward
-------------------------------------------
The Sunday Times reports that a FOR SALE sign is still hanging
over MG Rover, the struggling British car group. John Towers,
chairman, has re-affirmed comments he made to The Sunday Times
last month saying his role was one of "stewardship", preparing
the group for the possibility of "foreign ownership". Towers
fiercely denied a report in this newspaper on October 1 that said
he was prepared to sell MG Rover for about 50m pounds to a rival
manufacturer willing to invest ?300m in the company.

Towers described this as "utter nonsense" but has finally come
clean and confirmed it is a method by which the long-term future
of Rover could be assured. While Towers would not speak directly,
his spokesman said: "John has told me he was asked by The Sunday
Times if his role was to steer Rover through a period of
administration.

John confirms he said he was looking after the business for all
the stakeholders and it is a kind of stewardship. He also
confirms that if a company came along prepared to invest a lot of
money in Longbridge then it would be his responsibility to
consider such offers." Even though Towers has finally admitted he
is prepared to sell the company, it will not happen for about two
years as his deal with BMW, which sold the group to Towers'
Phoenix Consortium in May, dictates that the 550m pounds "dowry"
left to Rover by the Germans is repayable if the company is sold
within two years. Towers narrowly averted the prospect of a vote
of no confidence in his leadership this week after returning from
holiday in Portugal.

Towers has constantly denied boardroom rifts but after this
newspaper's revelations last week that three non-executives were
plotting a break-up bid for MG Rover, taking MG out and leaving
Towers with just the damaged Rover brand, he felt he had to move
fast. Brian Parker, a financier, and Terry Whitmore, head of
Mayflower's vehicle-systems division, were forced to resign.
David Bowes, managing director of Lola sports cars, is the third
member of what is being called "Consortium II". He remains on the
board for now.



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-
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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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