/raid1/www/Hosts/bankrupt/TCREUR_Public/001201.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

            Friday, December 1, 2000, Vol. 1, No. 146


                        Headlines

B E L G I U M

LERNOUT & HAUSPIE: Stockholders Seek Protection from Creditors
LERNOUT HAUSPIE: Software Firm Files for Chapter 11 Bankruptcy
REAL SOFTWARE: Completes Debt Restructuring


B U L G A R I A

BALKAN AIRLINE: Expects Losses This Year


C Z E C H   R E P U B L I C

KOMERCNI BANKA:  Government Chooses Four Bidders
UNION GROUP: Fund Accepts Credit Suisse-Winterthur Takeover


G E R M A N Y

ISION INTERNET:  Posts Third Quarter Loss of 4.81 Million Euros
TEAMWORK AG: Insolvent Software Finalizes Restructuring Program


I R E L A N D

CROFT PARK: Cork Developer Collapses; Leaves Huge Debt


U N I T E D   K I N G D O M

365 CORPORATION:  Posts First-Half Pre-Tax Loss
E-COMSPORT:  Management Crisis Deepens
HEWDEN-STUART: Canadian Firm Acquires Troubled Scottish Plant
HI-LINE HOLDINGS: Liquidation Proceedings
ICL:  Parent Fujitsu Plans Job Cuts

INGENTA:  Posts Pre-Tax Loss of 21.0 Million Pounds
J D WARD:  PIA Expels Financial Services Firm
KINGSTON COMMUNICATIONS: Reports Pre-Tax Loss
EIDOS: Computer Game Manufacturer Suffers Heavy Losses
MEYER MACHINES: Liquidation Proceedings

MOGIL MOTORS: Liquidation Proceedings
NORFOLK SIDINGS: Liquidation Proceedings
NORTH GRANITE: Liquidation Proceedings
NORWICH SIDINGS: Liquidation Proceedings
ORBIT BUILDING: Liquidation Proceedings

OREMO PROPERTIES: Liquidation Proceedings
PORTER CHADBURN: Liquidation Proceedings
PRIORY HOLDINGS: Liquidation Proceedings
RAMCO ALNAS: Liquidation Proceedings
THESTREET.CO.UK:  Freequotes.Co.Uk Buys Financial Website


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

LERNOUT & HAUSPIE: Stockholders Seek Protection from Creditors
--------------------------------------------------------------
Minority shareholders in troubled speech technology firm Lernout
& Hauspie said they had asked a Belgian prosecutor to pressure
L&H to seek protection from creditors, Reuters reports this week.
The company is in debt rescheduling talks with creditors. It has
about $200 million in short-term loans due in March.

Deminor, a group representing some 14,000 minority L&H
stockholders, said it filed a demand with the prosecutor's office
in Ieper, western Belgium, that L&H be taken under the authority
of a commercial court to avoid bankruptcy. Only a public
prosecutor and the firm itself can make such a move equivalent to
a Chapter 11 filing in the United States. "It will imply the
possibility for the company to put itself in a position to
develop a business plan and try to organize itself in a proper
way to deal with current pending issues," Deminor partner Bernard
Thuysbaert told a news conference.


LERNOUT HAUSPIE: Software Firm Files for Chapter 11 Bankruptcy
------------------------------------------------------------
Lernout & Hauspie Speech Products NV and its Dictaphone Corp.
unit filed for Chapter 11 bankruptcy after creditors set a
deadline to repay its debts or devise a restructuring plan, Wall
Street Journal reports this week. The company, with joint
headquarters in Ieper, Belgium, and Burlington, Mass., also is
being investigated by the Securities and Exchange Commission.
The bankruptcy filing was made in U.S. Bankruptcy Court in
Wilmington, Del. L&H said it would voluntarily file a request for
a concordaat reorganization under Belgian law.

Deminor, a consultancy representing a group of L&H's
shareholders, said it had asked the public prosecutor in Ieper,
Belgium, to put L&H under a concordaat, the Belgian equivalent of
Chapter 11, to allow it to work out a restructuring plan with a
court-appointed commissioner. L&H Chairman Roel Pieper said in a
prepared statement that the bankruptcy reorganization gives the
company an opportunity to chart a new course.

Mr. Pieper became chairman last week after Pol Hauspie, co-
founder of L&H, resigned from the company's board along with two
of his longtime lieutenants amid intense pressure from some
shareholders and bondholders to clean house.

Among the areas being investigated by the SEC are L&H's dealings
with 30 start-up firms, registered in Singapore and Belgium, that
in total provided 25 percent of L&H's revenue in 1999 and 10
percent in 1998. The SEC also is investigating a sudden surge in
L&H's revenue in South Korea, where its sales soared to $127
million in this year's first six months, up from just $1.2
million in last year's first half.

L&H has short- and long-term debt with five main creditors:
Belgian banks KBC Bancassurance, Fortis AG and Artesia Banking
Corp.; and German banks Deutsche Bank AG and Dresdner Bank AG.
The group of banks put forward a loan of 450 million euros to
finance L&H's acquisition of Dictaphone earlier this year. A
short-term loan of 200 million euros comes due on March 31.

L&H's bankruptcy petition lists $2.37 billion in assets, $255.3
million in short-term debts and $234.3 million in long-term debts
as of June 30. Dictaphone, the maker of dictation devices L&H
bought last March for $511 million, had $1.02 billion in assets
and $389.7 million in debts as of June 30, according to its
filing. A petition also was submitted by L&H Holdings USA Inc.
The unit was formerly Dragon Systems Inc., a rival maker of
speech-recognition software L&H bought in March for $587 million.


REAL SOFTWARE: Completes Debt Restructuring
-------------------------------------------
Belgian software and consulting firm, Real Software, whose stock
has taken a beating over concerns about its ability to pay off
its debt, said it had converted most of the debt into long-term
rather short-term credits. "Real Software can continue to finance
its internal growth after this debt restructuring," the company
noted. Reuters noted this week that Real Software had completed a
restructuring of 80 million euros ($69.26 million) in debt,
easing investor concerns about its financial situation.

Fortis analyst Luc Van der Elst welcomed the news but said the
company needed to give more information to enable the market to
determine whether the restructuring terms were good enough. "It
at least puts uncertainty out of the way," he said, adding that
the firm would now be able to focus its efforts on its U.S.
operations, which have seen sales dwindle. Real Software's stock
has been under pressure since October when it said it was seeking
to extend the payment period on less than 30 percent of about 200
million euros in loans.

Troubles at its U.S. operations, a restatement of its first-half
results, as well as diminishing investor enthusiasm for the
technology sector in general have also pushed the stock lower in
recent months. It has lost nearly 50 percent since October. Real
Software did not provide any further details and its officials
were not immediately available for comment.


===============
B U L G A R I A
===============

BALKAN AIRLINE: Expects Losses This Year
----------------------------------------
The Bulgarian airline Balkan expects to post operational losses
of between 13 and 14 million dollars (15 and 16 million euros) by
the end of the year. The company's new chief executive, Zvi
Frank, cited payments towards Balkan's vast debt, this year's
high fuel prices and the unfavorable exchange rate of the euro
against the dollar as the chief reasons for the anticipated
losses. Balkan is currently 50 million dollars (59 million euros)
in debt, down from 120 million dollars before the company was
privatized last year, Agence France Presse reports this week.

Agence France Presse noted that two Israeli companies, Zeevi
Group/Knafaim et Arkia holding, bought 75 percent of the airline
for 150,000 dollars, pledging to invest 100 million dollars in
the company over the next five years and pay off 30,000 dollars
of the airline's debt. Frank recalled that the privatization
contract had stipulated that the airline's current staff of 2,200
people would be reduced to 1,600 by the end of next year. Pilots
went on strike in May to protest staff cuts, a move which
threatened the airline with bankruptcy.


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

KOMERCNI BANKA:  Government Chooses Four Bidders
------------------------------------------------
Reuters reports this week that a senior government official said
on Wednesday that Komercni Banka, prior to its sale next year,
the Czech government should issue a guarantee over remaining
doubtful assets. Deputy Finance Minister Jan Mladek said that
guaranteeing assets in the three worst categories in the central
bank's five-level asset quality scale would be a performance
incentive for the new owners of the third largest Czech bank. The
government has picked Credit Agricole, Societe Generale,
HypoVereinsbank and Unicredito as bidders for the state's 60
percent stake in the bank, which has assets of 390 billion crowns
($9.7 billion).

The bidders will conduct due diligence in the coming weeks. The
sale is expected to be completed early next year. "I would be in
favor of providing some further, smaller, guarantees," Deputy
Finance Minister Jan Mladek said. This would raise the price and
thus capital engagement of the bidders, which would make them
more interested in the bank's management. "Banks follow return on
equity if they pay more, they will take care more," Mladek said.
Mladek said a decision on the issue had to be taken by the full
cabinet, and bidders have been informed that the bank might
receive no further outside help. Komercni has been repeatedly
bailed out after losses from poor management, suspected theft, a
weak local legal environment and an economic downturn, but still
had more than 25 billion crowns worth of assets in the three
bottom categories in September. In the past 12 months there has
been no dividend.  


UNION GROUP: Fund Accepts Credit Suisse-Winterthur Takeover
-----------------------------------------------------------
Reuters reports this week Czech Union Group said on Tuesday its
shareholders voted to accept a bid by Credit Suisse First Boston
and Swiss insurer Winterthur to take over the group, which
controls the country's largest pension fund. Union's spokesman
Josef Rericha said that the owners plan to sell the mid-sized
bank Union Banka, a key part of the group, at a later date to an
unspecified bank interested in Czech retail banking.

Union Banka posted a nine-month loss of 37 million crowns on
total assets of 25 billion crowns. The bank's non-performing
loans amounted to 24 percent of the balance sheet. But the group,
held by large North Moravian heavy industry firms, controls
Vojensky Otevreny Penzijni Fond (VOPF), the largest Czech pension
fund with more than 340,000 clients. It also holds stakes in
small Polish bank Bank Przemyslowy, a Czech asset management firm
and an insurance firm.


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

ISION INTERNET:  Posts Third Quarter Loss of 4.81 Million Euros
---------------------------------------------------------------
Dow Jones reports yesterday that a higher staff and integration
costs at Ision Internet AG led to a 4.81 million euros loss in
third-quarter earnings before interest, depreciation and
amortization (EBITDA).


TEAMWORK AG: Insolvent Software Finalizes Restructuring Program
---------------------------------------------------------------
Neuer Mark-listed Teamwork AG saw its shares surge 50 percent
after it outlined details of its planned restructuring program,
Handelsblatt reports yesterday. The insolvent software group
announced in the morning that it would focus on its core business
from now on and that the restructuring measures were expected to
be completed in the first quarter of 2001.

Teamwork's preliminary administrator, Frank Kebekus, said the
group's best chances of succeeding lay in its focusing on IT
services. In an interview with Handelsblatt he said most of the
blame for the company's difficulties lay with its investments in
product development. Kebekus said the next step would be the
selling off of non-core subsidiaries. An interested buyer had
already been found.

Handelsblatt noted that Teamwork would cut its workforce from 138
to 85 because it will again have to cover personnel costs from 1
January 2001. Since it applied for insolvency proceedings, the
company's wages have been paid by the labor office. DG Bank
pulled out after Teamwork announced its insolvency.


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

CROFT PARK: Cork Developer Collapses; Leaves Huge Debt
------------------------------------------------------
The collapse of Croft Park Homes, developers of a plush 20
million pounds Cork housing estate, has left over 100 creditors
facing total debts of almost 1 million pounds, Irish Independent
reports this week. Shocked creditors of the company, developers
of the luxurious Lindeville estate on the Blackrock Road in Cork
City, heard that over 840,000 pounds is owed by the firm and two
other companies linked to the development. Over 60 residents have
been left with unfinished homes. A total of 140 creditors have
been hit by the collapse, amongst them major building supply
firms including Brooks Haughton (160,000 pounds) and Cork
Builders Providers (70,000 pounds). Other major creditors include
building sub-contractors and financial institutions.

Conor O'Donovan was appointed liquidator to Croft Park Homes
after a special creditors meeting in the Vienna Woods Hotel. No
home owners attended the meeting, given previous indications that
they would rank after preferred creditors such as financial
institutions. Croft Park has no major assets and solicitor, Nick
Comyn, admitted it is "a very serious situation." Company
director Pat O'Connor apologized to all homeowners and creditors,
Irish Independent noted.


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

365 CORPORATION:  Posts First-Half Pre-Tax Loss
-----------------------------------------------
The Times reported yesterday that 365 Corporation (publishing)
has reported a first-half pre-tax loss of 16.5 million pounds.
There is no dividend.


E-COMSPORT:  Management Crisis Deepens
--------------------------------------
Another director of Internet company e-comsport walked out this
week, The Times reported yesterday. Roger Bullen, a non-executive
director and a representative of Largehive, a company that owns
36.97 percent of e-comsport, resigned yesterday. Mr Bullen is the
second director to leave in a week, after the abrupt departure of
Darryl Keys, the former operations director who is understood to
be in discussions with his lawyers about the terms of his
departure. Mr Bullen will be replaced by Angelos Kotonou, 43, who
founded e-comsport. E-comsport was born out of an idea sold to
the company by Grant Bovey, the TV producer married to Anthea
Turner. Mr Bovey was given 1 percent of e-comsport's stock in
exchange for the idea, The Times noted.


HEWDEN-STUART: Canadian Firm Acquires Troubled Scottish Plant
-------------------------------------------------------------
Hewden-Stuart, the troubled Scottish plant hire group,
recommended a cash offer from Finning, the Canadian equipment
dealer, which valued the company at 322 million pounds. Under the
115p-a-share deal, which marked a 68 percent premium to Hewden's
shares before the company announced it was in bid talks, Finning
will assume debts of 68 million pounds, The Times reported
yesterday. The Toronto-quoted company said that it would run the
two businesses separately.


HI-LINE HOLDINGS: Liquidation Proceedings
------------------------------------------
Company Name: Hi-Line Holdings Ltd
Company No: 1769460
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


ICL:  Parent Fujitsu Plans Job Cuts
-----------------------------------
Fujitsu is planning job cuts at its subsidiary ICL, the UK-based
IT services company which has large operations both in the
Republic and North of Ireland. The company is reportedly seeking
to exercise more control over the unprofitable subsidiary. Since
the company suddenly cancelled its plans for an IPO in August, a
restructuring has been widely expected, Electricnews.net reported
last week.

ICL employs more than 1,000 people in the Republic alone. Graham
Gould, public relations manager with ICL said: "The job cuts will
not affect the staff of the company in Ireland or the UK, but ICL
will cut back on its use of external contractors including
project managers and specialists". He said the company would be
looking to upskill staff within the company to fill the role that
external contractors had previously. ICL lost stg109.3 million on
sales of stg2.77 billion for the year to 31 March.


INGENTA:  Posts Pre-Tax Loss of 21.0 Million Pounds
---------------------------------------------------
The Times reported yesterday that Ingenta (business services) has
recorded pre-tax losses for the year of ?21.0 million and again,
there is no dividend.


J D WARD:  PIA Expels Financial Services Firm
---------------------------------------------
The Personal Investment Authority (PIA) announced that it has
expelled the firm of J D Ward (Financial Services) Ltd of 1 Long
Lane, London, EC1A 9HF, M2 Presswire reports this week. This firm
is therefore no longer authorized to conduct investment business.
The firm is expelled on the ground that it is no longer fit and
proper to conduct investment business because the firm no longer
meets PIA's financial resources requirement. The Firm was placed
in liquidation on 3 September 1999. Thereafter, one or more of
its investors lodged claims with the Investors Compensation
Scheme (ICS) which declared the Firm "in default".

J D Ward (Financial Services) Ltd had been subject to an
Intervention Notice issued on 23 September 1999 ordering it to
cease conducting and soliciting investment business, M2 Presswire
noted.

Notes:
1. J D Ward (Financial Services) Ltd was admitted to PIA
membership on 12 August 1996 and is a Category B3 member. PIA
Category B3 members are authorized to arrange investment
transactions and give investment advice but not to handle
clients' money or assets.

2. J D Ward (Financial Services) Ltd was subject to disciplinary
action on 28 May 1999 whereby it was fined GBP15,000 and ordered
to pay PIA's costs of GBP4,500.

3. The expulsion will enable PIA's Pensions Unit to commence work
on the firm's remaining pensions review cases. Any cases
identified by the Pensions Unit as having resulted in loss will
be passed to the ICS for further analysis, and to the extent
permitted under the ICS' rules, payment of redress.


KINGSTON COMMUNICATIONS: Reports Pre-Tax Loss
---------------------------------------------
Telecoms group Kingston Communications has suffered a 2.7 million
pounds pre-tax loss. The Independent noted this week that the
Hull-based group blamed the cost of its expansion program on the
change in its financial fortunes. Chairman Michael Abrahams said
the firm was putting in place a national infrastructure and re-
organising its business to turn itself into a national operator.
The group had expanded its East Yorkshire network and invested in
its satellite and new media business.


EIDOS: Computer Game Manufacturer Suffers Heavy Losses
------------------------------------------------------
Computer game heroine Lara Croft has been unable come to the
rescue of her manufacturer, Eidos, and prevent it from suffering
heavy pre-tax losses, The Independent reported yesterday. Pre-tax
losses after exceptional items in the six months to September 30
were 82.3 million pounds. At the same point last year, losses
were 37.9 million pounds.


MEYER MACHINES: Liquidation Proceedings
----------------------------------------
Company Name: Meyer Machines UK Ltd
Company No: 2576664
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


MOGIL MOTORS: Liquidation Proceedings
--------------------------------------
Company Name: Mogil Motors (Stirling) Ltd
Company No: SC
Appointed on: 23/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: Gerald I Rankin IPno: 5184
Firm Name: PricewaterhouseCoopers
Address: 1 Blythswood Square
City Postcode: Glasgow G2 4AD


NORFOLK SIDINGS: Liquidation Proceedings
-----------------------------------------
Company Name: Norfolk Sidings Ltd
Company No: 888633
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


NORTH GRANITE: Liquidation Proceedings
---------------------------------------
Company Name: North Granite Ltd
Company No: SC50262
Com. Business: Investment Co
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Thomas R Campbell IPno: 5122 Keith V Anderson 6885
Firm Name: T Hunter Thomson & Co
Address: 28 Alva Street
City Postcode: Edinburgh EH2 4QF


NORWICH SIDINGS: Liquidation Proceedings
-----------------------------------------
Company Name: Norwich Sidings Ltd
Company No: 509221
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


ORBIT BUILDING: Liquidation Proceedings
----------------------------------------
Company Name: Orbit Building Services Ltd
Company No: SC
Appointed on: 23/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: Blair C Nimmo IPno: 8208
Firm Name: KPMG
Address: Saltire Court 20 Castle Terrace
City Postcode: Edinburgh EH1 2EG


OREMO PROPERTIES: Liquidation Proceedings
------------------------------------------
Company Name: Oremo Properties Ltd
Company No: 481070
Com. Business: Property Holding Co
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Christopher R Ashe IPno: 1056
Firm Name: Lovewell Blake
Address: 89 Bridge Road Oulton Broad
City Postcode: Lowestoft NR32 3LN


PORTER CHADBURN: Liquidation Proceedings
-----------------------------------------
Company Name: Porter Chadburn Property Ltd
Company No: 394879
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


PRIORY HOLDINGS: Liquidation Proceedings
-----------------------------------------
Company Name: Priory Holdings Ltd
Company No: 2258128
Com. Business: Dormant
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Malcolm E Fergusson IPno: 6766 David M Walker 3606
Firm Name: BKR Haines Watts
Address: Park House Park Square West
City Postcode: Leeds LS1 2PS


RAMCO ALNAS: Liquidation Proceedings
-------------------------------------
Company Name: Ramco Alnas Ltd
Company No: SC124990
Com. Business: Sale of Submersible Pumps
Appointed on: 23/10/00
Type: Members
Appointed by: Members
Liquidators: Gerald I Rankin IPno: 5184
Firm Name: PricewaterhouseCoopers
Address: 32 Albyn Place
City Postcode: Aberdeen AB10 1YL


THESTREET.CO.UK:  Freequotes.Co.Uk Buys Financial Website
---------------------------------------------------------
U.S. financial website TheStreet has seen the UK operation it
axed earlier this month bought by real-time stock quote provider
Freequotes, Ananova reports on Wednesday. Backers say the 226,000
pounds deal will not see the original service back online, but
will give Freequote access to a ready-made database.
TheStreet.co.uk told its subscribers on November 16 that it was
to close following investor pressure on its U.S. parent company
to slash costs.

Ananova noted that Freequotes.co.uk is a subsidiary of
themutual.net PLC, whose joint managing director Simon Wajcenberg
says he looks forward to serving TheStreet's 180,000 UK
subscribers. He said: "TheStreet.co.uk's database, which cost 10
million pounds to compile, has a membership base which closely
matches the profile of Freequotes.co.uk's core audience. "It is
our belief that the acquisition of TheStreet.co.uk will make
Freequotes.co.uk profitable in the near future."



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,
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Copyright 2000.  All rights reserved.  ISSN 1529-2754.

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