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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, December 5, 2000, Vol. 1, No. 148


                        Headlines


A U S T R I A

LAUDA AIR:  New Manager Rules Out Folding Struggling Airline


B E L G I U M

BIORIM: Bankrupt Clinical Laboratory Up for Sale
LE JOURNAL: Weekly Newspaper Publication Suspended
SAIT-STENTO:  Job Cuts Part of Reorganization Plan


C Z E C H   R E P U B L I C

CKD DS:  Various Bidders in Line with the Deadline


D E N M A R K

GENMAB: Reports Nine-Month Loss Widens to 36.1 Million Crowns


F I N L A N D

BOTNIA LINK: Shipping Company Faces Bankruptcy


F R A N C E

INTERCALL: Reports First-Half Loss of Ffr 115.7 Million


G E R M A N Y

EDEL MUSIC: Reports a Nine Month Losses Widen to DM9.7 Million
T-ONLINE:  Troubled Company Names New Boss


I R E L A N D

TRANSAER: Finance Director Gets Monthly Consultancy Fee


P O R T U G A L

TAP-AIR: Loss-Making State Carrier Faces Crews Strike


S P A I N

HILADOS Y TEJIDOS: Goes for Restructuring


S W I T Z E R L A N D

4M TECHNOLOGIES: Reports a Q3 Net Loss

U N I T E D   K I N G D O M

A B CHANCE: Liquidation Proceedings
ADAM LEISURE: Liquidation Proceedings
BRITISH AIRWAYS: To Cut a 300 Million Pounds Annual Loss
DKI NOMINEE: Liquidation Proceedings
ELLENSTOWN DEVELOPMENTS: Liquidation Proceedings

HAMILTON WRIGHT: Liquidation Proceedings
HORTIVEST LTD: Liquidation Proceedings
INDEPENDENT ENERGY: Goes into Receivership
INDIGO LTD: Liquidation Proceedings
J & M TEXTILES: Liquidation Proceedings

LAND & CITY: Liquidation Proceedings
R A BRADY: Liquidation Proceedings
RICHARD KIMBELL: Furniture Maker Up for Closure
ROBINSON C T S: Liquidation Proceedings
ROYAL SCOTTISH:  Watchdog Fines Insurance Mortgage Firm

STEERHEART LTD: Liquidation Proceedings
TIME COMPUTERS: Asks HSBC to Reschedule Debts
UNIT26: Online Art Venture Goes into Liquidation Proceedings
XS LEISURE:  Goes into Receivership


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

LAUDA AIR:  New Manager Rules Out Folding Struggling Airline
------------------------------------------------------------
The new chairman of Lauda Air said he would not put the
struggling airline into liquidation, nor allow it to be acquired
by chief shareholder Austrian Airlines (AUA). Agence France-
Presse noted last week that Ferdinand Schmidt and a colleague
took over after the resignation of Niki Lauda, the former racing
driver, who set up the company in 1985. "I will not liquidate
Lauda Air, nor are there plans to merge the company into AUA,"
Schmidt said.

Lauda stepped down as the boss of his own airline amid mounting
criticism of his management of the company, which is deeply in
debt. He was replaced by Schmidt and Klaus Stoeger, both managers
of AUA, the national airline that upped its stake in Lauda Air to
47 percent earlier this week by buying 11.1 percent of
Lufthansa's stake. Accounting firm Deloitte and Touche reported
in October that Lauda Air could expect losses to the tune of one
billion schillings (73 million euros, 62 million dollars) this
year, Agence France-Presse reported.


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

BIORIM: Bankrupt Clinical Laboratory Up for Sale
------------------------------------------------
De Financieel Ekonomische Tijd reported earlier this month that
the Free University of Brussels (ULB) has acquired the clinical
laboratory Biorim, which went bankrupt on November 2. The
bankruptcy was due to fraud by the former owners. The
laboratory's administrators have officially approved the
purchase, which means that none of the 116 jobs will be lost. The
other bidder was the Erasmus-Edith Cavell hospital body in
Brussels.


LE JOURNAL: Weekly Newspaper Publication Suspended
--------------------------------------------------
Le Soir & World Reporter reported last week that the publication
of Belgian weekly newspaper Le Journal du Samedi has been
suspended while its editors-in-chief, Laurent Arnauts and Michel
Bouffioux, consider a re-launch within two to four weeks with
capital of about BFr20m. The company's debt will also be
restructured. Laurent Arnauts said that investors have shown an
interest, and in the meantime the paper is seeking funding from
the government and from Brussels. Potential investors include a
major publisher of periodicals willing to give operational
support, and Marie-Pauls Eskenazy, assistant manager of Labor
publishing, who is prepared to bring BFr5m to the paper if other
investors show an interest.


SAIT-STENTO:  Job Cuts Part of Reorganization Plan
--------------------------------------------------
Belgian communications services company Sait-Stento said it would
adopt extra measures to speed up reorganization in its Business
Unit Wireless Solutions unit by cutting up to 50 jobs, Reuters
noted last week. Sait-Stento said the measures were aimed at
bringing its unit back to profit from 2001 by reducing costs and
accelerating expected synergies. It said that the measures would
result in a reduction of staff in Belgium of 40 to 50 employees
for which a provision will be made in 2000.


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

CKD DS:  Various Bidders in Line with the Deadline
--------------------------------------------------
Czech News Agency reported last week that the German industrial
giant Siemens and the Czech firm Inekon, in line with the
deadline, submitted their binding bids for CKD Dopravni systemy
(CKD DS), while Skoda dopravni technika (SDT), a subsidiary of
Skoda Holding, has failed. Representatives of Siemens and Inekon
said that they would seek to mantain the production of rail
vehicles at CKD DS. The bids were to be submitted to CKD DS
bankruptcy assets administrator Peter Dostal.

Siemens spokesman Milos Adamek said he hoped the selection
procedure would not last long. "We aim to create a competitive
centre of rail vehicle production for Central and Eastern
Europe," he said, adding that some DM30m are needed to achieve
this and to secure further development of the company. Inekon
Group CEO Josef Husek said the company would concentrate on the
production of trams and metro trains, Czech News Agency noted.


=============
D E N M A R K
=============

GENMAB: Reports Nine-Month Loss Widens to 36.1 Million Crowns
-------------------------------------------------------------
Biotechnology company Genmab said it expects a more than 300
percent increase in the full-year 2000 operating loss, Reuters
noted last week. In 1999, Denmark-based Genmab's operating loss
before financial income was 18.88 million Danish crowns ($2.19
million). "We expect an increase in operating loss before
financial income of more than 300 percent compared to 1999,"
Genmab said in a statement regarding its third-quarter results.

The company, which develops human antibodies for the treatment of
debilitating diseases such as rheumatoid arthritis, said its
January-September operating loss widened to 36.1 million crowns
from a 12.8 million loss last year. Genmab's October initial
public offering priced at 260 crowns per share was six times
oversubscribed. Its share, which is also listed on the German
Neuer Markt, has since traded in a range of 170-262 crowns in
Copenhagen.


=============
F I N L A N D
=============

BOTNIA LINK: Shipping Company Faces Bankruptcy
----------------------------------------------
Kauppalehti reported earlier this month that the city of Vaasa
has come to the rescue of shipping company Botnia Link, which is
on the brink of bankruptcy. Vaasa proposes to convert outstanding
port fees of FM 2.5m into a long-term loan, payable when Botnia
Link has recovered from its financial problems. Botnia Link had
originally hoped for an agreement whereby part of its debts would
have been written off.

Harbour master Lars Holmqvist said it would probably take around
two years for Botnia Link to become profitable. Botnia Link,
which transports freight between Vaasa in Finland and Harnosand
in Sweden, was set up last year with insufficient capital funds.


===========
F R A N C E
===========

INTERCALL: Reports First-Half Loss of Ffr 115.7 Million
-------------------------------------------------------
Pre-paid phone card specialist Intercall suffered a net loss of
FFr 115.7m in the first half of the year, according to Le Figaro
& World Reporter. The figure includes an exceptional charge of
FFr 78.7m relating to its mobile operations, namely selling packs
with Bouygues Telecom, and the closure of the operations of its
Italian subsidiary. Shareholders' equity was FFr 75m in the red.
Candidates interested in buying Intercall, which has been granted
legal protection from its creditors, have until January 5 to make
their application.


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

EDEL MUSIC: Reports a Nine Month Losses Widen to DM9.7 Million
--------------------------------------------------------------
Edel Music AG, the German music industry group, said that it
won't reach its 2000 earnings targets owing to the weak
performance of its U.S. and Argentinean units, Handelsblatt
reported earlier this month. Despite surging sales, nine-month
losses after amortization costs from acquisitions and
depreciation widened to DM9.7 million from DM1.8 million last
year, Edel said.

Currency exchange costs of DM7.9 million on deferred purchase
payments also hit the company. After booking a currency loss and
non-recurring items of DM10.3 million, management now expects
adjusted earnings before interest, taxes, depreciation, and
amortization of close to DM57.5 million, resulting in adjusted
earnings before interest and taxes (ebit) of DM23.5 million. This
excludes possible earnings from its Edel Ventures division.

Edel said it would restructure its operations in the U.S. and
Argentina as a result of its overseas problems. It added that a
comprehensive cost-saving program is currently being implemented
with the help of management consultants Roland Berger. The chief
financial officer, Michael Diederich, will leave the company at
his own request by year-end. His temporary replacement will be
chief operating officer Andre Finkenwirth.


T-ONLINE:  Troubled Company Names New Boss
-------------------------------------------
Silicon.com reported earlier this month that Deutsche Telekom has
appointed a new CEO to head its ISP subsidiary T-Online. New boss
Thomas Holtrop was the former marketing director with Deutsche
Bank's retail unit Bank 24. However even as the appointment was
announced, shares continued to drop 2.8 percent to E16.58 (10.12
pounds). Earlier stock reached an all time low of E15.50 (9.46
pounds). T-Online has seen its shares fluctuate along a downward
trend since the summer resignation of former CEO Wolfgang Keuntje
and other top executives.

Wright Investors Service noted that this company has paid no
dividends during the last 12 months. The company also reported
losses during the previous 12 months. The company has not paid
any dividends during the previous three fiscal years.


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

TRANSAER: Finance Director Gets Monthly Consultancy Fee
-------------------------------------------------------
Sunday Business Post reported last week that the liquidator of
Transaer, the international airline that was wound up earlier
last month with estimated debts of more than GBP30 million, is
paying the company's finance director GBP11,000 a month to act as
a consultant. Mr Justice McCracken approved the payment to
Transaer director Robert Stevens who will advise liquidator John
McStay as he winds up the company's financial affairs. Stevens
will be retained until early next year. McStay, of Dublin
chartered accountants McStay Luby, is employing 18 Transaer
staff, mostly from the accounts department, at a cost of
GBP12,000 a week until the end of December. They are helping
McStay to finalize the company's financial affairs. The court was
told that these employees could leave Transaer before the end of
the year, as they were looking for new jobs. The rest of
Transaer's 502 workers, 298 of them in Ireland, were made
redundant last month.

Transaer's deadline for filing its statement of affairs was
extended by the court until December 11 as the winding-up was "a
complex case". The court was told that Air France and Air2000
owed Transaer more than GBP1 million. Stevens is one of
Transaer's four directors. PJ McGoldrick, who owned 91 percent of
the airline, William O'Byrne and Patrick O'Meara are the
company's other directors. Transaer blamed its collapse on a
failed $18 million investment in the American airline,
TransMeridian, and losses of $14 million incurred through
Transaer's German, Turkish and Greek charter markets, which were
adversely affected by the Kosova conflict.

The company was GBP14.5 million in arrears on its aircraft
leases, forcing a reduction in its fleet from 17 to 13 planes.
This resulted in $11 million lost turnover this year. The airline
won a $15 million contract to provide a new air service for
Kosova weeks before Transaer was wound up, Sunday Business Post
noted.


===============
P O R T U G A L
===============

TAP-AIR: Loss-Making State Carrier Faces Crews Strike
-----------------------------------------------------
TAP-Air, the Portugal's loss-making state carrier warned that it
was running short of funds as cabin crews prepared to strike
again, Reuters reported last week. A top official at the airline
said that delays to a planned partnership with Swissair were
hurting the company financially. Company vice-president Jose
Queiroz told the Diario de Noticias newspaper that TAP, which the
government plans to privatize, was waiting for the some 31
billion escudos ($134 million) that should come from the sale of
a 34 percent stake to the Swiss operator.

Swissair, part of the SAirGroup, has still not received approval
for its purchase from European Union competition authorities.
Belgium's Sabena also belongs to the Swiss-led Qualiflyer Group.
A link between Swissair and TAP would give the airlines a virtual
monopoly on the Lisbon-Brussels route.

Meanwhile, the union representing the company's 1,500 cabin crew
said that it would begin an indefinite strike. Cabin crew say the
company, which the government expects to lose over 20 billion
escudos ($87 million) this year, is not offering them the same
wage increases as others in the company. The company said it was
seeking to place passengers with alternative airlines to minimize
disruption.


=========
S P A I N
=========

HILADOS Y TEJIDOS: Goes for Restructuring
-----------------------------------------
Expansion & World Reporter reports earlier this month that
Spanish textile company Hilados y Tejidos Puignero, which
suspended its payments of debts in November, presented its
feasibility plan to the Catalonia regional government, the
Generalitat, and to the trade unions. The plan includes a 30
percent cut in production and the company's restructuring into
three independent business units. The plan is aimed at resolving
the crisis that lead to the suspension of payments with debts of
147 million euros (Pta24.464bn). It includes the abandonment of
those threads and cloths lines with the lowest added value and
with "non-existent margins", according to managing director Pere
Punti.


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

4M TECHNOLOGIES: Reports a Q3 Net Loss
--------------------------------------
Reuters reported last week that 4M Technologies slipped deeply
into the red in the third quarter and predicted a full-year
operating loss. The company swung to a third-quarter net loss of
60.9 million Swiss francs ($35.1 million) from a 6.9 million
franc profit in the same 1999 period, but aimed to be back in the
black in 2001 after a 45 million franc restructuring drive.
Excluding the cost of the program to shape up the company, 4M
expects a 25 million franc operating loss in 2000 on sales of 115
million francs. Sales in the first nine months amounted to 109
million francs, down 29 percent on the same 1999 period.

Reuters noted that 4M, with market shares of up to 20 percent in
different sectors, was left exposed when Taiwanese clients,
reviewing their business plans, cancelled 150 million Swiss
francs worth of orders, for which 4M had already started
production. "If a big Taiwanese client cancels a signed contract,
you just have to accept it," company chairman and founder Adel
Michael told a news conference on the third-quarter results.


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

A B CHANCE: Liquidation Proceedings
------------------------------------
Company Name: A B Chance UK Ltd
Previous Name: Pledgehit Ltd
Com. Business: Dormant
Appointed on: 24/10/00
Type: Members
Appointed by: Members
Liquidators: Ian C Oakley Smith IPno: 8890 David J Waterhouse
5732
Firm Name: PricewaterhouseCoopers
Address: Hill House Richmond Hill
City Postcode: Bournemouth BH2 6HR


ADAM LEISURE: Liquidation Proceedings
--------------------------------------
Company Name: Adam Leisure Group Plc
Company No: 2611845
Appointed on: 24/10/00
Type: Members
Appointed by: Members
Liquidators: Angus M Martin IPno: 8331
Firm Name: Deloitte & Touche
Address: 10-12 East Parade
City Postcode: Leeds LS1 2AJ


BRITISH AIRWAYS: To Cut a 300 Million Pounds Annual Loss
--------------------------------------------------------
The Times reported yesterday that British Airways will this week
begin a shake-up as it tries to cut a 300 million pounds annual
loss on its short-haul network. Rod Eddington, BA's chief
executive, will tell 8,500 staff at Gatwick airport that there
will be heavy job losses on European services. Union leaders
believe that Mr Eddington will make clear that pay and conditions
will have to be addressed as the first steps in a two-year cost-
cutting program if job losses are to be kept below 1,000.

Mr Eddington will hold a string of face-to-face meetings with
staff as he sets out his strategy of eventually cutting the ten
BA franchises and subsidiaries to simplify the complex routing
and scheduling operation at Gatwick. As part of the first phase,
expected to be announced on Wednesday, Mr Eddington will link its
wholly owned franchise carrier CityFlyer more closely to the
company's loss-making European operations, simplifying scheduling
and other support services, The Times noted.

According to a report obtained by The Times, British Airways
insists that it is not a merger, and that the profitable
CityFlyer will remain independent. However, union leaders believe
that it could eventually lead to CityFlyer being incorporated
into the main company or more services being transferred to the
franchise at lower cost. Bob Ayling, Mr Eddington's predecessor,
provoked widespread anger and strike action when he imposed a 1
billion pounds cost-cutting plan, but the current chief executive
has been at pains to draw union leaders into discussions. One
union leader said: "It's not going to be pleasant but at least
we're involved in the discussions. And the staff will actually
hear from the chief executive directly, which never happened
under Ayling."


DKI NOMINEE: Liquidation Proceedings
-------------------------------------
Company Name: DKI Nominee Co Ltd
Company No: 1997388
Com. Business: Dormant
Appointed on: 24/10/00
Type: Members
Appointed by: Members
Liquidators: Jeremy S Spratt IPno: 1286
Firm Name: KPMG
Address: PO Box 730 20 Farringdon Street
City Postcode: London EC4A 4PP


ELLENSTOWN DEVELOPMENTS: Liquidation Proceedings
-------------------------------------------------
Company Name: Ellenstown Developments Ltd
Company No: IR
Appointed on: 24/10/00
Type: Members
Appointed by: Creditors
Liquidators: Michael Butler IPno:
Firm Name: Butler & Co
Address: 49 Fitzwilliam Square
City Postcode: Dublin 2


HAMILTON WRIGHT: Liquidation Proceedings
-----------------------------------------
Company Name: Hamilton Wright Insurance Services Ltd
Company No: 3605545
Com. Business: Insurance
Appointed on: 24/10/00
Type: Members
Appointed by: Members
Liquidators: Peter W Engel IPno: 8103
Firm Name: Solomon Hare
Address: Oakfield House Oakfield Grove
City Postcode: Bristol BS8 2BN


HORTIVEST LTD: Liquidation Proceedings
---------------------------------------
Company Name: Hortivest Ltd
Company No: IR
Appointed on: 24/10/00
Type: Members
Appointed by: Members
Liquidators: Barry M Forrest IPno:
Firm Name: O'Connor Leddy & Holmes
Address: Century House Harolds Cross Road
City Postcode: Dublin 6


INDEPENDENT ENERGY: Goes into Receivership
------------------------------------------
The Evening Standard reported earlier this month that the
creditors owed more than Pounds 260 million by the first casualty
of Britain's deregulated electricity and gas markets will not see
a penny of the money they are due.

Receivers to Independent Energy, the Pounds 1.5 billion stock
market which crashed into receivership in September and was
subsequently sold for just Pounds 9 million, have told unsecured
creditors they need not even bother setting up a creditors'
committee. Professional advisers, such as investment bank
Donaldson Lufkin & Jenrette and accountants Pannell Kerr Forster,
along with hundreds of trade creditors including Vertex, United
Utilities' call centre and billing services business, are owed a
total of at least Pounds 260 million.

The Evening Standard noted that in a letter to creditors from
receivers KPMG convening a meeting in Birmingham on Monday,
insolvency partner Miles Halley says: 'In this instance, such a
(creditors') committee will be able to serve little purpose as it
is unlikely that any funds will be available for the unsecured
creditors.' The letter reveals that the banking syndicate which
lent Independent Pounds 165 million hopes to recover nearly half
its money.

Halley defends the decision to sell Independent - which had
320,000 customers to Innogy so quickly (within a week) and so
apparently cheaply. He says it was in such a state at
receivership that it was shelling out Pounds 20 million a week
and there was a real danger that Ofgem, the regulator, could
revoke its electricity and gas licenses, potentially causing
chaos for customers. The receivers have made no statement about
any legal action they may take. The receivers said they have had
35 expressions of interest for the business and four serious
offers, The Evening Standard reported.


INDIGO LTD: Liquidation Proceedings
------------------------------------
Company Name: Indigo Ltd
Company No: 2828764
Com. Business: Holding Co
Appointed on: 24/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Trevor Frid IPno: 6030
Firm Name: Ernst & Young
Address: One Bridewell Street
City Postcode: Bristol BS1 2AA


J & M TEXTILES: Liquidation Proceedings
----------------------------------------
Company Name: J & M Textiles Ltd
Company No: 3868618
Com. Business: Textile Manufacturers
Appointed on: 24/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Kirankumar Mistry IPno: 8795 John P Harlow 8319
Firm Name: HKM Harlow Khandhia Mistry
Address: The Old Mill 9 Soar Lane
City Postcode: Leicester LE3 5DE


LAND & CITY: Liquidation Proceedings
-------------------------------------
Company Name: Land & City Properties (Birmingham) Lt
Company No: 3567154
Com. Business: Property Owners
Appointed on: 24/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Neil Henry IPno: 8622 Nola Barber 8000
Firm Name: Lines Henry
Address: 27 The Downs
City Postcode: Altrincham WA14 2QD


R A BRADY: Liquidation Proceedings
-----------------------------------
Company Name: R A Brady Ltd
Company No: NI18925
Com. Business: Agricultural Machinery
Appointed on: 24/10/00
Type: Creditors
Appointed by: Creditors
Liquidators: John J Cavanagh IPno: 8650
Firm Name: J J Cavanagh & Co
Address: 38 Northland Row
City Postcode: Dungannon BT71 6AP


RICHARD KIMBELL: Furniture Maker Up for Closure
-----------------------------------------------
Leicester Mercury reported earlier this month that a two-month
fight to save Market Harborough-based furniture maker Richard
Kimbell has failed. The company had Pounds 8 million annual
turnover but was forced to close its factory and showroom after
receiver KPMG failed to sell the company. A total of 134 company
staff will have lost their jobs once all sold items have been
dispatched to customers from the firm's showroom.

The closure prompted senior Harborough District Councillor Robin
Totten to call for action to attract more manufacturing jobs to
the town. He said: "This is very sad news. Although the area has
low unemployment we cannot afford to lose the kind of jobs
Richard Kimbell provided." Richard Kimbell called in the
receivers at the end of September because of tough market
conditions.

Since then staff in the Market Harborough and other retail sites
in the Midlands and the south of England have been laid off as
chances of finding a buyer receded. On Friday, 40 workers based
in Enfield and Surrey were axed when the two shops were closed.
Other jobs in Market Harborough were lost as production was wound
down. The company expanded rapidly during the past 10 years and
employed 134 people including 80 in the Market Harborough area.
The firm also had a concession at London department store
Selfridges. A decision has yet to be made when a creditors'
meeting will be held.


ROBINSON C T S: Liquidation Proceedings
----------------------------------------
Company Name: Robinson C T S Ltd
Previous Name: Dibbco No 1 Ltd
Com. Business: Dormant
Appointed on: 24/10/00
Type: Members
Appointed by: Members
Liquidators: Ian C Oakley Smith IPno: 8890 David J Waterhouse
5732
Firm Name: PricewaterhouseCoopers
Address: Hill House Richmond Hill
City Postcode: Bournemouth BH2 6HR


ROYAL SCOTTISH:  Watchdog Fines Insurance Mortgage Firm
-------------------------------------------------------
Ananova reported yesterday that City watchdog the Financial
Services Authority has handed down its largest penalty, fining
insurer Royal Scottish Assurance 2 million pounds for
miscalculating its endowment mortgages in the early 1990s. Up to
30,000 customers could be affected and the RSA has had to set
aside 50 million pounds to cover claims for compensation. The
fine is a record for the City watchdog, and matches the largest
ever by a City regulator, against investment bank Deutsche Morgan
Grenfell in 1997 by IMRO, the Investment Management Regulatory
Organization (IMRO).


STEERHEART LTD: Liquidation Proceedings
----------------------------------------
Company Name: Steerheart Ltd
Previous Name: Keyton UK Ltd
Company No: 3709117
Appointed on: 24/10/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Alan S Bradstock IPno: 5956
Firm Name: Langley & Partners
Address: Langley House Park Road
City Postcode: London N2 8EX


TIME COMPUTERS: Asks HSBC to Reschedule Debts
---------------------------------------------
The Independent reported yesterday that Time Computers, Britain's
biggest computer retailer, is in talks with HSBC to reschedule
its loans after running into financial difficulties caused by
falling PC prices and the company's own headlong expansion.

HSBC refused to comment on the affairs of one of its customers
but a source close to the talks said: "If Time wasn't able to
reschedule it would be in difficulty but the sense I get is that
this is a reasonably straightforward refinancing and not a
crisis." Separately, it has emerged that Time is suing IBM for 3m
pounds for alleged fraud over the supply of supposedly faulty
memory chips. In July Time settled a 13m pounds compensation
claim with IBM over the same issue out of court. The company now
has 2,000 employees, including 900 at a manufacturing plant in
Simonstone, Lancashire, and a chain of 180 shops.

The Independent noted that the Banking sources suggested that
Time had been forced to seek a refinancing because some of its
core business forecasts had not been borne out. But it is
understood that HSBC is giving the company as much support as it
can.


UNIT26: Online Art Venture Goes into Liquidation Proceedings
------------------------------------------------------------
Net Imperative reported earlier this month that Durlacher
director Andy Bottomley confirmed that liquidation proceedings
had commenced at UNIT26, an online art venture in which the LSE-
listed technology investment group had a 30 percent stake. The
extent of Durlacher's investment was never revealed, but
Bottomley indicated it was not a particularly large sum. He said
that there was currently some interest in the assets of the
business, with some art galleries said to be interested. The
decision to withdraw further funding from UNIT26 was in line with
the new approach to managing its investment portfolio set out in
its results statement on 15 September.


XS LEISURE:  Goes into Receivership
-----------------------------------
AIM-quoted XS Leisure said Bank of Scotland has appointed a
receiver to the company, Citywire reports earlier this month. XS
Leisure asked for its shares to be suspended after talks on
providing fresh finance dragged on for longer than hoped. The
shares last traded at 16.5p. Shareholders were warned in
September that heavy losses had forced the company to consider
its options.



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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