/raid1/www/Hosts/bankrupt/TCREUR_Public/001127.mbx     T R O U B L E D   C O M P A N Y   R E P O R T E R     

                       E U R O P E

         Monday, November 27, 2000, Vol. 1, No. 142


                        Headlines

A U S T R I A

AUSTRIAN AIRLINES: Reports Nine Months Net Loss of E19.9 Million
LAUDA AIR: Losses Push Austrian Airlines into Red
LAUDA AIR:  Goes for Restructuring


B E L G I U M

LERNOUT & HAUSPIE:  Under Investigation
LERNOUT & HAUSPIE: Faces Lawsuits


C Z E C H   R E P U B L I C

KONPO: Reports a Nine Month Loss of Kc690.6 Million


G E R M A N Y

BMM BROADWAY: Insolvent Former Stella AG a Bargain for Deag
GRUNDBESITZ-UND BETEILINGUNGS: Files for Insolvency
PHILIPP HOLZMANN: Extends Loan Facility by DM500 Million
TEAMWORK INFORMATION: Creditors Show Support for Rescue Package
UTIMACO SAFEWARE:  Posts Q1 Operating Loss of 2.7 Million Euros


P O L A N D

HUTA KATOWICE:  Ailing Steel Mill Goes for Privatization
NETIA: Reports Net Loss of Zl. 396 Million
STATE RAILWAYS: Signs Agreement to Provide for Telecoms Services


R O M A N I A

RAFO REFINERY: FPS Approves Restructuring


R U S S I A

MIL:  Court Appoints Director to Solve Financial Difficulties


U N I T E D   K I N G D O M

EASIER: Loss-making Online Up for Sale
FARM & COUNTRY: Liquidation Proceedings
GIVEFERN LTD: Liquidation Proceedings
H W SMALL: Liquidation Proceedings
MARKETING FOCUS: Liquidation Proceedings

MILLENIUM DOME:  Dot.Com Doubts Over Dome's New Role
REVOLUTION PROMOTIONS: Liquidation Proceedings
SELCO LTD: Liquidation Proceedings
SYNCHRONICITY LTD: Liquidation Proceedings
UNITED PAN-EUROPEAN: Shows Debt of Seven Billion Euros

UTRAVEL: Up for Closure
WICKLOW SPRING: Liquidation Proceedings


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

AUSTRIAN AIRLINES: Reports Nine Months Net Loss of E19.9 Million
----------------------------------------------------------------
Austrian Airlines Group, which owns Austrian Airlines and Lauda
Air, has posted losses for the first nine months of the year.
Reuters reported last week that national flag carrier Austrian
Airlines, which owns 36 percent of troubled Lauda Air, reported a
net loss of 19.9 million euros ($16.9 million) for the nine
months to September 30 compared with a net profit of 16.4 million
euros in the same 1999 period.

Austrian Airlines Austrian Airlines has pledged to maintain the
Lauda Air brand if it wins control of the company.


LAUDA AIR: Losses Push Austrian Airlines into Red
-------------------------------------------------------
Reuters reported last week that Niki Lauda resigned on Tuesday as
chief executive of Lauda Air. He quit after auditors said
derivatives transactions, such as currency swaps to finance
aircraft, had not been properly monitored by the Lauda board.
Austrian Airline's co-CEO Mario Rehulka, however, said financial
irregularities at Lauda went beyond derivatives transactions.

"Basically, the 1999/2000 results and the first-half results this
year were not correct," he told Reuters. Rehulka said he believed
Lauda's actual losses last year and in the first half of this
year were higher than reported by the company.


LAUDA AIR:  Goes for Restructuring
----------------------------------
Austrian Airlines says it is planning a far-reaching
restructuring of the entire group, which it will present to the
supervisory board next month, Reuters reported last week.

Austrian Airlines accused Lauda Air of understating losses and it
was unhappy with Lauda's plan to offset the loss through a sale-
and-leaseback arrangement on five aircraft. Austrian Air made
clear it had lost confidence in Lauda's leadership and announced
plans to buy the Lufthansa stake.


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

LERNOUT & HAUSPIE:  Under Investigation
---------------------------------------
Reuters reported last week that Lernout & Hauspie (L&H) is facing
investigations into accounting irregularities and a growing
number of shareholder lawsuits. The financial and legal problems
besetting L&H in the worst crisis in the company's history have
made it harder for L&H to attract new business and could make it
even harder for it to stave off financial problems.

L&H has vowed aggressive action to restore profitability
including possible cuts in staffing and product lines. "We will
take whatever action necessary to get to a level of operating
profit," Chairman Roel Pieper said.


LERNOUT & HAUSPIE: Faces Lawsuits
----------------------------------
Lernout & Hauspie's stock value has plunged nearly 95 percent
from a record of over $70 in March to just over $3 before it was
suspended on the pan-European Easdaq market in Brussels and the
U.S. Nasdaq market on November 9.

The company, a flagship for Belgium's Flemish regional
government, faces lawsuits from U.S. shareholders and possible
legal action by thousands more in Belgium, Reuters noted last
week. It is also under investigation by U.S. and European
regulators following news reports about alleged discrepancies in
its financial statements, especially in Asia.

L&H has not yet published third-quarter results, but it has
warned that revenues would be at least $40 million below
forecast. Earlier this month, L&H said it would restate financial
statements for 1998, 1999 and the first half of 2000 after an
internal audit found irregularities in its books. It also
reshuffled management, with co-founders Jo Lernout and Pol
Hauspie quitting the board, and began a restructuring that could
trim staff and axe some products. Others acknowledged L&H's
problems but said they would reserve judgment until fourth
quarter results.


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

KONPO: Reports a Nine Month Loss of Kc690.6 Million
---------------------------------------------------
CTK  & Euromoney reported last week that Konpo, which took over
Kc60bn worth of problem loans, has not yet managed to sell a
single claim of Komercni banka (KB) outside the state-owned
Konsolidacni banka (KoB) group.

"The company is now finalizing the process of the sale of
claims," Konpo's Petr Bilak said, adding that no claim has been
sold so far. Konpo's Web site lists 42 tenders, with the largest
debtors being Tiba, Moravska typografie, Ostroj Opava, Roman
Zubik - Sezooz and Jaromir Sedlak - Autoprodej Sedlak. Konpo's
claims on these firms exceed Kc1.5bn. Altogether, Konpo lists
claims on a total of 1,582 firms worth an incredible Kc56bn on
its Web site.

Konpo should this year sell claims worth Kc2.5bn. Konpo, a 100-
pct subsidiary of KoB, ended the first nine months of the year
with a Kc690.6m loss.


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

BMM BROADWAY: Insolvent Former Stella AG a Bargain for Deag
-----------------------------------------------------------
Borsen-Zeitung & World Reporter noted last week the insolvent
former Stella AG (Hamburg), which was acquired by DEAG Deutsche
Entertainment AG (Berlin) for DM 40m and then incorporated into
Deag subsidiary BMM Broadway Musical Management, seems to have
been a bargain. Deloitte & Touche has estimated its value at DM
77m.


GRUNDBESITZ-UND BETEILINGUNGS: Files for Insolvency
---------------------------------------------------
Frankfurter Allgemeine Zeitung reported last week that property
investor Grundbesitz-und Beteiligungs AG (Delmenhorst) has filed
for insolvency at the Bremen district court. In 1999 the company
had a loss of DM 4.9m on turnover of DM 7.2m. The balance sheet
total is DM 75m. Basic capital was DM 10.8m but in September the
company announced that losses amounted to more.


PHILIPP HOLZMANN: Extends Loan Facility by DM500 Million
--------------------------------------------------------
Construction group Philipp Holzmann AG said that a banking
consortium has extended its loan facility by DM500 million. The
consortium, which includes Holzmann shareholder Deutsche Bank AG,
Dresdner Bank AG and Commerzbank AG, last year loaned Holzmann
DM1 billion to restore its liquidity and prevent insolvency.

Holzmann was to have reduced the credit facility by selling real
estate it managed. Holzmann said the sale of its land and
property assets has been delayed. It needs the additional credit
to continue its restructuring in 2001, Handelsblatt reported last
week.


TEAMWORK INFORMATION: Creditors Show Support for Rescue Package
---------------------------------------------------------------
Teamwork Information Management AG, the insolvent German IT
services company, has the support of its main creditors for a
rescue package, Frankfurter Rundschau & World Reporter noted last
week. According to Frank Kebekus, the temporary administrator,
the banks Westdeutsche Landesbank Girozentrale and Sparkasse
Paderborn will provide the liquid funds necessary to secure the
continuation of business.

Under the rescue concept, the company will sell investments at
home and abroad and find a strategic partner business. Talks with
interested parties are said to be progressing well. Operative
business is continuing as normal, employees are staying on and it
is reported that no orders have been cancelled thus far.


UTIMACO SAFEWARE:  Posts Q1 Operating Loss of 2.7 Million Euros
---------------------------------------------------------------
Handelsblatt noted last week that the software security company
Utimaco Safeware AG's first-quarter operating results have been
revised to a loss of 2.7 million euros from an initial reported
loss of 3.0 million euros.


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

HUTA KATOWICE:  Ailing Steel Mill Goes for Privatization
---------------------------------------------------------
Reuters noted last week that Poland has arranged a bridge loan
for ailing state-owned Huta Katowice to save the country's
largest steel mill from collapse and allow it to continue
privatization talks, a deputy economy minister said. Deputy
Economy Minister Edward Nowak would not give details of the loan
or name the bank that would provide the back-up. Katowice
suffered a major setback early this month after Anglo-Dutch steel
group Corus dropped plans for taking part in Katowice's sell-off,
citing an unclear financial structure and uncertainty over
Poland's steel sector.

Katowice, which had asked for state guarantees for its loan
portfolio, feared the failure of the privatization talks could
lead to the firm's insolvency as banks might decline to further
fund the heavily indebted plant. "The government will not provide
guarantees for the firm's banking loans as that would be against
our policy," Nowak told Reuters. "We have found a state bank,
which will provide a bridge loan for Katowice and allow for
restructuring and searching for a strategic partner," Nowak
added.

Press offices at the three major state banks PKO Bank Polski, BGK
and BGZ -- all said they had no knowledge about the proposed
loan. The company is holding talks with Italy's Danieli and
Brazilian group CVRD, the world's largest iron ore producer, who
are willing to participate in the privatization.


NETIA: Reports Net Loss of Zl. 396 Million
------------------------------------------
Poland A.M. reported last week that Netia, Poland's largest
private fixed-line telephone operator, attracted zl.314 million
in revenue in the first three-quarters of the year. However, the
company incurred net losses of zl. 396 million, or zl.31 million
less than in the corresponding period last year.

Despite having increased its subscribers to 307,200 by the third
quarter, Netia still remains in the red, in part due to
protracted negotiations with Telekomunikacja Polska S.A. (TP SA)
over inter-network connections. The failure to clinch a deal with
TP SA has incapacitated the telecom firm's operations on the
Warsaw and inter-city markets where it has a license to operate.


STATE RAILWAYS: Signs Agreement to Provide for Telecoms Services
----------------------------------------------------------------
Warsaw Business Journal noted last week that NG Koleje
Telekomunikacja (NGKT) signed a $46.5 million agreement last week
with Polish State Railways (PKP) to lease 5,300 kilometers of the
rail operator's fiber-optic lines for 15 years. The agreement
will enable NGKT to lease up to an additional 2,000 kilometers
from PKP for $17.5 million. The British-Polish telecom consortium
will spend the money on developing its fiber-optic network for
data transmission services for Internet access and e-commerce in
Poland.

Andrzej Celinski, the president of PKP, said at a news conference
that the investment will enable the financially troubled PKP to
form a separate company for telecommunications services, which it
intends to eventually spin off. The sell-off is part of PKP's
plans to separate its rail transportation service from its
unrelated business interests as part of the railway's overall
restructuring and eventual privatization.


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

RAFO REFINERY: FPS Approves Restructuring
-----------------------------------------
Romania's main privatization agency, the State Ownership Fund
(FPS), said it had approved a restructuring plan to help troubled
state-run crude oil refinery RAFO. A FPS statement said under
restructuring moves 120 jobs would be cut in a first stage. RAFO
employs some 2,000 people. The FPS also envisages steps to
diminish outstanding debts by 1.14 trillion lei. RAFO reported
debts of some ROL 3.4 trillion and losses totaling 992 billion at
end-September.

Refining at RAFO was halted last November due to lack of funds to
buy crude oil and after the FPS's repeated failures to sell its
60 percent stake in the refinery, Reuters reported last week.


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

MIL:  Court Appoints Director to Solve Financial Difficulties
-------------------------------------------------------------
Agence France-Presse noted last week that the virtual bankruptcy
of Mil, Russia's leading helicopter manufacturer, includes all
the elements of a thriller:  emptied bank accounts, a director
beaten up and "disappearing" executives. Add in media speculation
that a big American competitor, which owns a stake in Mil, might
be behind the Russian company's problems.

Mil's court-appointed director Vladimir Bogotcharov must come up
with a rescue plan by the middle of December to pull the company
out of its financial difficulties. "The situation is serious but
not catastrophic," Bogotcharov said. "If we succeed in solving
our problems, no competitor will be a match for us."

The scenario started in November 1998, when a small Russian
company, Roubej, began the process of putting Mil into
bankruptcy, for non-payment of a 12,000-dollar debt, a tiny
amount in view of the millions of dollars of assets owned by Mil.

Meanwhile, Mil's main creditor, Russian bank MIB, believes former
director Zapolski had done nothing wrong and has appealed against
the decision to fire him. "Mil is a direct competitor" to
Sikorsky and its bankruptcy would help the US company, Expert
reported.


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

EASIER: Loss-making Online Up for Sale
--------------------------------------
Rupert Jones reported last week that the dot.com gloom deepened
the planned sell-off of a loss-making online property service.
Property website Easier, which promised to "revolutionize the way
homes are bought and sold", said it was to sell the company's
ongoing business but keep its stock market listing as a shell
company that can be sold to another start-up.

The announcement comes days after the closure of financial news
site TheStreet.co.uk with the loss of 64 jobs. Easier said its
board had decided that shareholder value would be best served by
selling its main business, leaving the company as a cash shell,
available as a route to market for another company through a
reverse takeover. The board would also consider offers for the
company, either before or after the planned sale of the business.

Easier's founders, Steve Rist and Steve Butcher, had already made
an offer to acquire the firm's business and non-cash assets, and
another employee had expressed interest in making an offer, the
company said.


FARM & COUNTRY: Liquidation Proceedings
----------------------------------------
Company Name: Farm & Country Standards Ltd
Company No: IR
Appointed on: 18/10/00
Type: Members
Appointed by: Members
Liquidators: Donal Morrissey IPno:
Firm Name: Donal Morrissey & Co
Address: Castleconnell
City Postcode: Limerick


GIVEFERN LTD: Liquidation Proceedings
--------------------------------------
Company Name: Givefern Ltd
Company No: 177055
Com. Business: Wholesale/Retail Luggage
Appointed on: 18/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Kikis Kallis IPno: 4692
Firm Name: Kallis & Co
Address: Mountview Court 1148 High Road Whetstone
City Postcode: London N20 0RA


H W SMALL: Liquidation Proceedings
----------------------------------
Company Name: H W Small & Son Ltd
Company No: 0523064
Com. Business: General Builders
Appointed on: 18/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: Julie A Heggarty IPno: 8835
Firm Name: Smith & Williamson
Address: Old Library Chambers 21 Chipper Lane
City Postcode: Salisbury SP1 1BG


MARKETING FOCUS: Liquidation Proceedings
-----------------------------------------
Company Name: Marketing Focus Training Ltd
Company No: 2989200
Appointed on: 18/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Keith R Cottam IPno: 9046
Firm Name: Cottam Bell Partnership
Address: Barclay House Hospital Hill
City Postcode: Dawlish EX7 9NS


MILLENIUM DOME:  Dot.Com Doubts Over Dome's New Role
----------------------------------------------------
Legacy, the company that is buying the Millennium Dome, has not
yet got a single company to guarantee that it will take space in
its hi-tech business park - and will not be able to sign up
anybody until it has finalized its 125m pounds deal with the
government, The Guardian reported last week. Legacy is expected
to take over the dome in February. A company spokesman said that
market research had shown there was a huge demand for businesses
to move into the Dome, but this was not stood up by IT companies
contacted by the Guardian.


REVOLUTION PROMOTIONS: Liquidation Proceedings
-----------------------------------------------
Company Name: Revolution Promotions & Marketing Ltd
Company No: 3677257
Com. Business: Music/Film Industry Promotion
Appointed on: 18/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Anthony J Harris IPno: 4142
Firm Name: Critchleys
Address: Boswell House 1-5 Broad Street
City Postcode: Oxford OX1 3AW


SELCO LTD: Liquidation Proceedings
-----------------------------------
Company Name: Selco (N W) Ltd
Company No: 3231853
Com. Business: Other Service Activities
Appointed on: 18/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Gary J Corbett IPno: 9018
Firm Name: Milner Boardman & Partners
Address: Century House Ashley Road
City Postcode: Hale WA15 9TG


SYNCHRONICITY LTD: Liquidation Proceedings
-------------------------------------------
Company Name: Synchronicity (UK) Ltd
Previous Name: Marketing Focus (UK) Ltd
Company No: 2275360
Appointed on: 18/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Keith R Cottam IPno: 9046
Firm Name: Cottam Bell Partnership
Address: Barclay House Hospital Hill
City Postcode: Dawlish EX7 9NS


UNITED PAN-EUROPEAN: Shows Debt of Seven Billion Euros
------------------------------------------------------
Shares of United Pan-European Communications NV fell to 8.65
euros amid rumors it was set to default on a four billion euro
loan, Reuters noted last week. The share price slipped 24 percent
and continued to fall despite firm denials from UPC itself and
loan underwriters Chase Manhattan Bank and Toronto Dominion Bank
that the company was in danger of default.

UPC's 200 million euro 11.25 percent bond due 2010 was quoted at
63 percent of face value offered, giving a yield of around 20
percent. Its $600 million 11.5 percent 2010 bond was 62 offered,
and yielded about 21 percent. Dealers said prices were
indicative, with very little actual trading in the debt being
undertaken.

UPC has around seven billion euros of debt, against a market
capitalization of around four billion euros. Fears it would not
be able to service the debt underlay last week's share price
plunge. "Equity and bond valuations have come down significantly
but cable has been in line with the rest of the market," said
Martin Hornbuckle, head of European high-yield telecoms research
at Credit Suisse First Boston.


UTRAVEL: Up for Closure
-----------------------
Holiday website uTravel became the latest Internet failure when
its owner, United News & Media, said it was being shut down in
the light of competitive conditions in the online business-to-
consumer travel market. Rupert Jones noted last week that
uTravel, part of United's new media division Xilerate, began
business in 1999 and aimed to provide holidaymakers with
information on trips and flights, and then direct them to their
nearest travel agent to make a booking.

Xilerate said it believed that with the intense competition in
the sector, which is dominated by players such as Thomas Cook's
online arm and Lastminute.com, further investment in the business
could not be expected to achieve the required return in the
foreseeable future. The announcement comes days after the closure
of financial news site TheStreet.co.uk with the loss of 64 jobs.


WICKLOW SPRING: Liquidation Proceedings
----------------------------------------
Company Name: Wicklow Spring Ltd
Company No: IR
Appointed on: 18/10/00
Type: Members
Appointed by: Members
Liquidators: James Stafford IPno:
Firm Name: Friel Stafford
Address: 13 Fitzwilliam Square
City Postcode: Dublin 2



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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