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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

        Friday, November 17, 2000, Vol. 1, No. 137


                        Headlines

C Z E C H   R E P U B L I C

MASOKOMBINAT KLATOVY:  Faces Financial Crisis


G E R M A N Y

COMMERZBANK AG: Restructuring Plan Could Close 200 Bank Branches
EMPRISE MANAGEMENT:  Posts Third-Quarter Loss of DM6 Million


H U N G A R Y

MOL: Gas Loss Turns Strong Q3 into Loss


I T A L Y

FREEDOMLAND INTERNET: Posts Third Quarter Net Loss of ITL16.5Bln
WIND TELECOM:  Reports Nine Months Net Loss of ITL1.2Trln


L A T V I A

LATVIJAS UNIBANKA:  SEB Acquires 98.2 Percent


L I T H U A N I A

KURO APARATURA: Attracts One Bid from Russian Carmaker


N E T H E R L A N D S

TULIP:  Goes for Restructuring, to Cut 300 Jobs


P O L A N D

POLSKI KONCERN: Loans for Debt Restructuring


R U S S I A

MEDIA MOST: Talks with Gazprom to Continue
SAKHAROV CENTER:  May Be Forced to Close


S W I T Z E R L A N D

FANTASTIC CORPORATION: Reports Nine Months Net Loss of $38.7Mln


U N I T E D   K I N G D O M

A G E S LTD: Liquidation Proceedings
B & Z SERVICES: Liquidation Proceedings
BRITISH AIRWAYS: CEO Restructures Management Team
BRITISH TELECOM: Sells 34 Percent Stake to Cut Debts
CCS LTD: Liquidation Proceedings

CULAUN LTD: Liquidation Proceedings
G W WALLACE: Liquidation Proceedings
GLOBALNET: Report Third Quarter Loss of 10.9m Pounds
HOSIER & DICKSON:  Court Banned Directors for Three Years
HUNTINGDON LIFE: Reports a Nine Months Pre-Tax Loss of 5.8Mln

INTERACTIVE: Reports Operating Loss of 19.5 Million Pounds
L A D ENETRPRISES: Liquidation Proceedings
MIDLAND MEATS: Liquidation Proceedings
MILLENIUM DOME: Falconer Refuses to Answer on NAO's Report
NEIL & SPENCER: Liquidation Proceedings

RUDRY INVESTMENTS: Liquidation Proceedings
VOBIS MICROCOMPUTER: Liquidation Proceedings


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

MASOKOMBINAT KLATOVY:  Faces Financial Crisis
---------------------------------------------
Masokombinat Klatovy (MKK), the biggest meat processor in West
Bohemia, should stop production as it lacks financial resources
for sustaining production, Hospodarske Noviny & World Reporter
reports this week. About three-quarters of the company's 370
employees have been staying at home for 70 percent of their
wages. In August the company was declared bankrupt later a court
of appeal cancelled the decision. There are still conflicts going
on between MKK's owner, Maso Plana, and the preliminary
bankruptcy administrator in MKK. Soon, the county court in Plzen
should either confirm or definitely cancel its original
bankruptcy decision from August.


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

COMMERZBANK AG: Restructuring Plan Could Close 200 Bank Branches
----------------------------------------------------------------
Commerzbank AG said Wednesday that it will combine its retail-
banking and asset-management divisions as part of a restructuring
that could close up to 200 of its branches in Germany, WSJ.COM
News noted this week. Chairman Martin Kohlhaussen said the
restructuring, scheduled for January, would help Commerzbank to
"focus on customers and our core activities." He added that the
bank would study all its business lines over the next few months
to decide which of them are truly core activities. Under the new
structure, Germany's fourth-largest bank will combine its retail-
banking and asset-management businesses, and plans to have a
separate business line for investment and corporate banking.


EMPRISE MANAGEMENT:  Posts Third-Quarter Loss of DM6 Million
------------------------------------------------------------
Dow Jones Newswires reports this week that Emprise Management
Consulting AG posted a third-quarter earnings before interest and
taxes loss of 6 million Deutsche marks (EUR1=DEM1.95583),
narrowing its second-quarter loss by DEM1.5 million, the company
said. Adjusted for losses generated by its unit, Mediascape
Communications AG, the third-quarter EBIT loss is DEM2.2 million.


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

MOL: Gas Loss Turns Strong Q3 into Loss
---------------------------------------
Hungarian oil and gas group Mol said on Tuesday that losses in
its gas business turned its result into red in the third quarter
of 2000. The firm suffered a third quarter loss of 12.2 billion,
Reuters noted this week. Its gas and power division posted a HUF
80.9 billion loss in the first three quarters, compared to an
11.9 billion profit in the same period last year. In the third
quarter alone, the loss in the gas and power division amounted to
HUF 43.3 billion, partly due to a 13.9 billion cost of writing
down gas inventories, MOL said.

"Based on current exchange rate, import price and sales volume
assumptions, the gas segment will suffer a loss in excess of HUF
100 billion for the calendar year 2000," MOL Chief Executive
Officer Gyorgy Mosonyi commented in the report.


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

FREEDOMLAND INTERNET: Posts Third Quarter Net Loss of ITL16.5Bln
----------------------------------------------------------------
Freedomland Internet Television SpA said consolidated revenue in
the fiscal first quarter ended September 30 totaled ITL2.77
billion (EUR1=ITL1936) while it posted a net loss of ITL16.5
billion. The loss before interest, tax, depreciation and
amortization was about ITL18.2 billion while the operating loss
amounted to ITL25.3 billion, Dow Jones Newswires reports this
week. The company is under investigation on allegations it may
have falsified company data, although it has denied any
wrongdoing. The company has called a shareholders' meeting for
Dec. 28 on first call and Jan. 15 on second call to approve the
results and increase the number of board members.


WIND TELECOM:  Reports Nine Months Net Loss of ITL1.2Trln
---------------------------------------------------------
Dow Jones Newswires noted this week that Wind Telecommunications
consortium's net loss widened to ITL1.2 trillion (EUR1=ITL1936)
in the nine months ended Sept. 30 from ITL530 billion in the
period last year. Wind is owned by Enel SpA and France Telecom.


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

LATVIJAS UNIBANKA:  SEB Acquires 98.2 Percent
---------------------------------------------
Sweden's Skandinaviska Enskilda Banken (SEB) has acquired 98.2
percent of Latvijas Unibanka's shares. The preliminary results of
the Unibanka stock buy-out offer were provided to BNS this week
by Unibanka spokesman Haralds Burkovskis.

BNS & Euromoney reports this week that the final results will be
known Nov. 16. The settlements for the stocks applied for sale
will be performed. Thus Unibanka will become a full-fledged
member of SEB group. "By incorporating the bank into SEB group
its clients in Latvia will receive broader services provided by
an international banking group.

Riga Stock Exchange (RSE) public relations office head Ilze Nagla
told BNS that during the offering SEB purchased from shareholders
16,455,877 shares in Unibanka for 2.05 lats per share (USD 3.3),
which is 44.35 percent of the bank's stocks. In the bourse's
trading system 1390 transactions were conducted with Unibanka
stock for the total of 33,734,547 lats.


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

KURO APARATURA: Attracts One Bid from Russian Carmaker
------------------------------------------------------
BNS & Euromoney reports this week that a tender to acquire a
stake in Kuro Aparatura, the Lithuanian fuel injection equipment
producer, has attracted only one bid. According to information
available to BNS, Russian carmaker Avto VAZ submitted the sole
bid by Monday's deadline. The state is selling 33.48 percent of
shares in Kuro Aparatura together with shares held by other
shareholders through a public tender, with the combined stake
amounting to 50 percent of shares in the Vilnius-based company.

Under the privatization program, the buyer is to maintain the
plant's current work force within a year after the signing of a
deal and raise the number of jobs by at least 30 percent in the
next two years. Kuro Aparatura now employs over 1,000 people. The
potential buyer also is to cover the company's liability to
creditors, which currently amounts to 63 million litas (USD 15.75
mln).


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

TULIP:  Goes for Restructuring, to Cut 300 Jobs
-----------------------------------------------
De Telegraaf & World Reporter noted last week that Dutch computer
company Tulip is taking steps to save the company from
liquidation. The company will cut 300 jobs and close its offices
in the Dutch town of Rosmalen. Tulip announced earlier last week
that it expects to incur losses of 14m euros in this financial
year. The company forecasted a small profit for 2000 seven weeks
ago, despite a loss of 6.5m euros in the first six months. The
operational loss will amount to about 9.5m euros in 2000. The
company said that the losses are due to problems with
distribution by suppliers and a decrease in demand for computers
on the corporate market. The company expects that the
restructuring will save 7.5m euros annually.


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

POLSKI KONCERN: Loans for Debt Restructuring
--------------------------------------------
Polski Koncern Naftowy Orlen's net value of debt at the end of
the first half was ZL2.3 billion, Polish News Bulletin noted last
week. The loan of $200m must first serve the payment of old
debts. Orlen has to pay back $100m in credit, which matures in
2001. The loan will also help decrease the engagement of
liabilities in zlotys in the debt structure. At the moment they
constitute 73 percent of the total liabilities, and should
decrease to 55 percent as a result.

The company will receive the loan from a banking consortium
comprising ABN Amro, Bayerische Landesbank Girozentrale,
Westdeutsche Landesbank Girozentrale, Mitsubishi, Fuji, Bank
Slaski, WBK, Citibank, UniCredito, Banca di Roma, and
Kulkerereskedeimi of Hungary. The present loan should not greatly
contribute to changing the debt indicator, affirms PKN vice-
president Marek Mroczkowski.


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

MEDIA MOST: Talks with Gazprom to Continue
------------------------------------------
Prime Tass News & Euromoney reported yesterday that the board
chairman of the Russian Gazprom company and first deputy head of
the presidential staff Dmitry Medvedev said that the talks
between Gazprom and Media-Most holding over US 211 mln debts
would continue. It is important for Gazprom to receive debts in
cash or in any other form, he added. This version is being
discussed, but the sides have not come to agreement yet. Medvedev
did not specify concrete dates of concluding a possible
agreement, noting that "reasonable deadlines should be fixed, but
the main thing is to get back the debts".

He emphasized that the presidential office is not preoccupied
with the situation between Gazprom and Media-Most, stating that
the Gazprom board of directors does not participate in the talks
either. Medvedev noted that as a consumer of information
services, he does not expect disappearance of the NTV television
company, which is a part of Media-Most, from the Russian media
market.


SAKHAROV CENTER:  May Be Forced to Close
----------------------------------------
The Moscow Times reported yesterday that the Sakharov Center and
Museum in Moscow could be forced to call it quits. Four and a
half years after opening a feared closure is not the result of
governmental pressure, nor does the museum think it has finished
its documentation. Western grants and donations that kept the
center running dried up in September and the staff has been
unable to find Russian donors. Sakharov museum director Yury
Samodurov warns he could be forced to close the museum as soon as
December.

To date, the center has been supported almost solely by foreign
grants, with less than 1 percent of the $1.7 million spent coming
from Russian sources, director Samodurov said last week. About 80
percent of those funds were provided by the U.S. Agency for
International Development. That financing was good through
September of this year. Samodurov said a new foreign donor has
been found, but has postponed the start of financing until May.


=====================
S W I T Z E R L A N D
=====================

FANTASTIC CORPORATION: Reports Nine Months Net Loss of $38.7Mln
---------------------------------------------------------------
Dow Jones Newswires reported yesterday broadband solutions
provider Fantastic Corporation (Z.FAN) said sales increased by 15
percent to $15.1 million in the first nine months of 2000
compared to the same period last year. The company's net loss for
the period was $38.7 million as compared to a loss of $10.1
million a year earlier.


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

A G E S LTD: Liquidation Proceedings
-------------------------------------
Company Name: A G E S Ltd
Company No: SC
Appointed on: 12/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: Eileen Blackburn IPno: 8605
Firm Name: HLB Kidsons
Address: Breckenridge House 274 Sauchiehall Street
City Postcode: Glasgow G2 3EH


B & Z SERVICES: Liquidation Proceedings
----------------------------------------
Company Name: B & Z Services Ltd
Company No: SC
Appointed on: 12/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: Michael J Reid IPno: 7327
Firm Name: Meston Reid & Co
Address: 12 Carden Place
City Postcode: Aberdeen AB10 1UR


BRITISH AIRWAYS: CEO Restructures Management Team
-------------------------------------------------
The Wall Street Journal reports this week that Rod Eddington, the
British Airways new chief executive putting his mark on staffing,
shuffled his senior team, eliminating the job of commercial
director Carl Michel, who had been under former CEO Bob Ayling.
Investors have been expecting Mr. Eddington to make changes in
the airline's leadership since he arrived in May, following Mr.
Ayling's dismissal in March.

According to Wall Street Journal, Mr. Michel's departure was
announced internally to BA staff on Tuesday. It followed by one
week initial strategic changes Mr. Eddington unveiled with BA's
half-year results, including the decision to sell its budget
airline subsidiary, Go. New CEO will announce a shakeup in BA's
route network and major changes at its second London hub, at
Gatwick, in a few weeks.

The Wright Investors' Service noted the company's financial
position at the end of 2000, British Airways Plc had negative
working capital, as current liabilities were ?3.29 billion while
total current assets were only ?2.59 billion. As of March 2000,
the company's long term debt was ?6.51 billion and total
liabilities were ?10.18 billion. The long term debt to equity
ratio of the company is 1.96. As of March 2000, the accounts
receivable for the company were ?1.04 billion, which is
equivalent to 43 days of sales.


BRITISH TELECOM: Sells 34 Percent Stake to Cut Debts
----------------------------------------------------
British Telecom cut its rising debt load when it agreed to sell a
34 per cent stake in Sunrise, a Swiss telecom group, to joint
venture partner Tele Danmark for ?460m. The move also served to
end the Swiss third generation mobile license auction as Tele
Danmark immediately unveiled a merger of Sunrise with rival
bidder diAx. This left four groups contesting the same number of
licenses, prompting the Swiss government to postpone the auction
and launch an investigation into the bidders' conduct, The
Independent  and Newsnow reports this week. A BT spokesman said:
"BT is 100 per cent confident that the deal is above board. This
is a case of the right deal at the right time."

The telecom giant's shares ended down 10.5p at 689.5p after
losing an early 3 per cent advance. That followed an 11 per cent
slump since the restructuring was unveiled this week. A fund
manager noted: " bought some wireless stuff, spent money on 3G
licenses and said it was all very controlled. But suddenly they
look like forced sellers."

The Swiss sale coincided with BT confirming plans to stay in
Cegetel, a joint venture with Vivendi, while reserving the right
to review its position. Jean Marie Messier, chief executive of
Vivendi, has demanded that BT clarify its intentions after the
British company attempted to close down Vizzavi, the French
group's rival internet joint venture with Vodafone Group.
An arbitration court rejected BT's request on Friday, but said it
could call for compensation should proof arise that an agreement
between Vizzavi and SFR, Cegetel's mobile phone network, was
prejudicial to SFR.


CCS LTD: Liquidation Proceedings
---------------------------------
Company Name: CCS (European Software) Ltd
Company No: IR
Appointed on: 12/10/00
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


CULAUN LTD: Liquidation Proceedings
------------------------------------
Company Name: Culaun Ltd
Company No: IR
Appointed on: 12/10/00
Type: Members
Appointed by: Members
Liquidators: Thomas P Butler IPno:
Address: 7 Strand Mews St Johns Road Sandymount
City Postcode: Dublin 4


G W WALLACE: Liquidation Proceedings
-------------------------------------
Company Name: G W Wallace Ltd
Company No: SC
Appointed on: 12/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: T M Burton IPno: 8224
Firm Name: Ernst & Young
Address: George House 50 George Square
City Postcode: Glasgow G2 1RR


GLOBALNET: Report Third Quarter Loss of 10.9m Pounds
----------------------------------------------------
The long haul back to stock market respectability for Internet
companies was further illustrated when finance internet site
reported losses. The Independent reports yesterday that the
GlobalNetFinancial.com, which operates the UK-invest site,
recorded losses of $15.5m (?10.9m) in the three months to
September. However, heavy exceptional charges, including $9.4m
losses associated with the failed merger with Telescan, pushed
total quarterly losses to $27.1m.


HOSIER & DICKSON:  Court Banned Directors for Three Years
---------------------------------------------------
Hosier & Dickson, a Watford-based construction concern company
which collapsed into voluntary liquidation in November 1996 with
debts of pounds 2.15 million, blamed by the directors on problems
with luxury house building projects in the Southeast. Birmingham
Post reports this week that the two directors of have been banned
as directors by a Midland court after the company collapsed with
debts of pounds 2.15 million.

Geoffrey Hosier of Elstree, Hertfordshire, and Lloyd Emmanuel
Johnson of Edgware, Middlesex, were both banned from running a
company for three years at Coventry County Court. The court found
that they had failed to keep proper accounts and traded to the
detriment of creditors. The case was heard at Coventry because
the liquidator handling Hosier & Dickson registered the company
in Lutterworth. Wragge & Co brought the case for the Secretary of
State for Trade & Industry.


HUNTINGDON LIFE: Reports a Nine Months Pre-Tax Loss of 5.8Mln
-------------------------------------------------------------
The Times & NewsNow noted yesterday that HUNTINGDON Life
Sciences, the animal experimentation company, saw a 7 percent
increase in third-quarter sales and revealed that it is close to
a refinancing that would clear its 22.6 million pounds
borrowings. The company, often the target of demonstrators,
intends to sell and lease back its laboratories in the UK and US.
It made a pre-tax loss of 5.8 million pounds for the nine months
to September (5.2 million pounds loss).


INTERACTIVE: Reports Operating Loss of 19.5 Million Pounds
----------------------------------------------------------
Interactive Investor International, which was one of the most
popular flotation of the dot.com boom, reported doubled fourth-
quarter losses of 4 million pounds, The Independent reports
yesterday. Interactive Investor, whose float was 26 times
subscribed and attracted 27,000 private investors, blamed market
sentiment rather than any flaw in its business model for the fall
in its shares.

The shares were priced at 150p in February and hit a peak of 415p
within a few days. Yesterday, they ended flat at 39p. "It's a
market issue rather than a consumer issue," Tom Carruthers, the
chief executive, said. Although operating costs fell in the three
months to September, losses increased because of a 1m pounds cost
associated with the company's stock market flotation in February
and a 2m pounds investment in a second data centre. The
Independent noted that over the year to 30 September, operating
losses totaled 19.5m pounds compared with 6.4m pounds in the
previous year. Revenues were 6m pounds compared with 2.5m pounds.


L A D ENETRPRISES: Liquidation Proceedings
-------------------------------------------
Company Name: L A D Enetrprises Ltd
Company No: IR
Appointed on: 12/10/00
Type: Members
Appointed by: Members
Liquidators: Sean P Sheehan IPno:
City Postcode: Dublin


MIDLAND MEATS: Liquidation Proceedings
---------------------------------------
Company Name: Midland Meats Ltd
Company No: IR
Appointed on: 12/10/00
Type: Members
Appointed by: Creditors
Liquidators: Edward Walsh IPno:
Firm Name: Edward Walsh & Co
Address: 10 Taney Crescent
City Postcode: Dublin 14


MILLENIUM DOME: Falconer Refuses to Answer on NAO's Report
----------------------------------------------------------
World Reporter reports this week that Lord Falconer of Thoroton
refused to be challenged by the House of Lords over last week's
highly critical report by the National Audit Office on the
Millennium Dome. The minister responsible for the project, in his
first appearance before Parliament since its publication, said it
would be wrong to "pre-empt or prejudice" the Government's reply.

Lord Lamont of Lerwick, a former Tory Chancellor, asked why a
further pounds 179m was put into the Dome even though the project
was clearly "trading insolvently" by February. "If that isn't an
indictment of the way it was run, what is?" asked Lord Lamont,
referring to Lord Falconer's remark on television that the Dome's
failure was "in no way an indictment of the way it had been run".

The Cabinet Office minister said: "The options were continuing to
trade or closure - continuing to trade was the cheaper. The
number of visitors is more than any other paid-for visitor
attraction."


NEIL & SPENCER: Liquidation Proceedings
----------------------------------------
Company Name: Neil & Spencer Ireland Ltd
Company No: IR
Appointed on: 12/10/00
Type: Members
Appointed by: Members
Liquidators: Brendan P Foster IPno: 8670
Firm Name: Foster McAteer
Address: 32 Upper Mount Street
City Postcode: Dublin 2


RUDRY INVESTMENTS: Liquidation Proceedings
-------------------------------------------
Company Name: Rudry Investments Ltd
Com. Business: Property Developers
Appointed on: 12/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: Ian Franses IPno: 2294
Firm Name: Ian Franses Associates
Address: Conduit House 24 Conduit Place
City Postcode: London W2 1EP


VOBIS MICROCOMPUTER: Liquidation Proceedings
---------------------------------------------
Company Name: Vobis Microcomputer Ltd
Company No: 3049558
Com. Business: Dormant
Appointed on: 12/10/00
Type: Members
Appointed by: Members
Liquidators: Paul F Jeffery IPno: 5768
Firm Name: KPMG
Address: Aquis Court 31 Fishpool Street
City Postcode: St Albans AL3 4RF



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

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