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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 19, 2000, Vol. 1, No. 158

                        Headlines


B E L G I U M

LERNOUT & HAUSPIE: Insurance Firm Bids for 16 of L&H's Divisions
LERNOUT & HAUSPIE: Weighs Offers for Assets Amid Bankruptcy
SAIRGROUP: Ailing Units Swissair and Sabena Deficits


C Z E C H   R E P U B L I C

CKD DS:  Siemens Offers Kc750 Million


L I T H U A N I A

TAUPOMASIS BANKAS: Government Seeks Better Price


R U S S I A

AJT AIR:  Aeroflot Seeks Payments to Bankrupt Debtor
MEDIA-MOST: Tax Authorities Seek Liquidation


S W E D E N

ICON MEDIALAB: Sees Q4 Loss of 50 Mln Skr
NOVADA: To Spin Off Subsidiaries in Attempt to Avoid Bankruptcy


S W I T Z E R L A N D

GENERALE IMMOBILIERE: Real Estate Group Up for Sale


U N I T E D   K I N G D O M

BETEEM INDUSTRIES: Liquidation Proceedings
BREATHE.COM: Collapses with Losses of up to 50 Million Pounds
BROCKWELL PROPERTIES: Liquidation Proceedings
CONTINENTAL ASSURANCE:  Onslow Denies Insolvent Trading
CORUS: Threat of Steel Strike as Jobs Axe Looms

DONSIDE PAPER:  Faces Financial Crisis
EQUITABLE LIFE: MPs are Set to Intervene in the Crisis
FORD EUROPE:  Ford to Axe More Jobs in Europe
GLEN OFFSHORE: Liquidation Proceedings
GRESHAM (DIY): Liquidation Proceedings

ICFI CORPORATE: Liquidation Proceedings
LLOYDS TSB: Plans 16,000 Job Cuts if Deal Reached with Abbey
NRC (EDINBURGH): Liquidation Proceedings
NIXDORF COMPUTER: Liquidation Proceedings
UPSON INDUSTRIES: DTI Petition to Wind Up

VAUXHALL: Union Leaders Take Fight to Save 2,200 Jobs
VAUXHALL:  More Car Plants at Risk
VIRGIN MOBILE: Raises 115 Million Pounds in Debt from JP Morgan


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

LERNOUT & HAUSPIE: Insurance Firm Bids for 16 of L&H's Divisions
----------------------------------------------------------------
Newsbytes News Network reported last week that a Belgian
insurance firm has emerged as the unlikely victor in the battle
for the 30 startup divisions of Learnout & Hauspie (L&H), the
troubled European speech recognition firm. L&H is saying nothing
about media reports concerning Mercator & Noordstar's successful
bid for 16 of the 30 startup divisions, but the company has
called a press conference. Today's Wall Street Journal (WSJ),
quotes Ronald Everaert, the firm's CEO, saying that he did not
realize that his firm's involvement in the 16 start-ups would be
as great as it turned out to be.

The other 14 start-ups, eight were funded at least in part by
Flanders Language Valley Fund, a Belgian venture fund set up by
Jo Lernout and Pol Hauspie, L&H's original co-founders. Financial
reports show that Mercator owns 6.9 percent of L&H Holding, which
itself owns 8.9 percent of L&H. The Mercator mopping-up exercise
comes in the wake of a complex series of events that ended last
week with a Belgian court denying L&H its request for protection
from creditors. On Dec. 8, the company was told it had failed to
provide sufficient information for a concordat to be satisfied.

A concordat is broadly similar to US bankruptcy protection. The
company had applied to the Belgian court for protection from its
creditors, a matter that would have been granted as a matter of
routine in the US courts under US bankruptcy protection
legislation, Newsbytes News Network noted.


LERNOUT & HAUSPIE: Weighs Offers for Assets Amid Bankruptcy
-----------------------------------------------------------
Lernout & Hauspie & Hauspie Speech Products NV announced Dec. 15
that the company has been in discussions with outside parties
about the sale of L&H assets. "We are continuing to discuss with
outside parties as to potential interest in parts of the company
or the whole of the company," L&H Chairman Roel Pieper said in a
press conference Dec. 15. Asked about a rumored BFr6.5 billion
($144 million) offer for Mendez, L&H's translation business,
Pieper said that L&H had received many offers but at the moment
no decisions have been made, The Deal reported last week.

L&H is under Chapter 11 protection in the U.S. but has been
denied similar protection in Belgium, throwing into question
which of the company's assets are protected. At stake is the fate
of three primary divisions: Dictaphone, the text-to-speech
business; Dragon, the speech-recognition unit; and Mendez, the
translation entity.

The Belgian court's denial of bankruptcy protection in Belgium
surprised L&H, Pieper said. The Deal noted that in handing down
the denial, Judge Michel Handschoewerker cited the poor content
of the petition and the lack of reliable financial data.
The judge also said L&H could refile the request. But instead of
refiling in that court in Ieper, Belgium, L&H has said that it
will appeal the ruling early this week in a higher court in
Ghent. By then L&H expects to produce updated financials and more
detailed restructuring information.


SAIRGROUP: Ailing Units Swissair and Sabena Deficits
----------------------------------------------------
Ananova noted this week that according to a Sonntagszeitung
report, SAirGroup AG may face a full-year net loss of 300 million
sfr in 2001 due to deficits posted by its ailing units Swissair
and Sabena. The group reportedly plans to sell real estate worth
400 million sfr in order to remain solvent under a sale and lease
back program.


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

CKD DS:  Siemens Offers Kc750 Million
-------------------------------------
The German concern Siemens, the only bidder for rail vehicle
producer CKD Dopravni systemy (CKD DS), has offered Kc750m for
the company's production facilities and land. Talks are now under
way on the amount of orders that Siemens will take over. Michal
Mejstrik, the director of the consulting firm EEIP which
organized the tender, made no comment on the price but conceded
that talks are now taking place with Siemens on which orders it
will take over. Originally, two other companies were also
interested in CKD DS, namely Skoda Plzen and the designing firm
Inekon. However, Skoda Plzen did not submit its bid and Inekon
failed to make the Kc10m advance payment, Czech News Agency
reported last week.


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

TAUPOMASIS BANKAS: Government Seeks Better Price
------------------------------------------------
BNS & Euromoney noted last week that the Lithuanian government
will try to negotiate a better deal on the sale of a 90.73
percent stake in Taupomasis Bankas (Savings Bank, or LTB) because
the current price does not correspond to the actual value of the
country's largest state-owned bank.  The former government set
the minimum selling price of the block at around 200 million
litas (USD 50 mln), with the state assuming no extra obligations.

Members of the new Cabinet said they saw Estonia's Hansapank, the
only bidder to acquire the stake in LTB, as an acceptable partner
for further negotiations. Government officials said the
government was interested in bringing the bank's privatization
process to an end as soon as possible.
Government officials pointed out violations of sell-off
principles while negotiating for success and failure fees with
privatization advisers, as well as certain international business
ethics rules, BNS noted.

Officials in charge of the LTB privatization process could not
but be aware of the fact that the international auditors' firm
Arthur Andersen was providing consultations services to the
sellers, i.e. LTB and SPF, and Hansapank at the same time, an
apparent violation of international business ethics.


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

AJT AIR:  Aeroflot Seeks Payments to Bankrupt Debtor
----------------------------------------------------
AJT was set up as a private charter carrier in 1992, operates
flights to Turkey, Egypt, Cyprus, Spain, Italy and Thailand and
carried 490,000 passengers last year. Aeroflot has filed a
lawsuit in the Moscow arbitration court that is intended to
bankrupt a charter airline that failed to keep its debt payments.
Aeroflot lawyer Boris Yeliseyev said the airline had filed a suit
against AJT Air International, The Moscow Times reported last
week.

The Russian Association of Air Carriers this year rated AJT as
Russia's third-largest carrier on international routes after St.
Petersburg's Pulkovo airline. Aeroflot's suit says AJT owes it
200 million rubles (dollars 7.2 million) in back payments for
fuel and catering services. Aeroflot was not available for
comment Wednesday last week.

The Moscow Times noted that AJT's general director Sergei Gusak
acknowledged in a telephone interview that AJT owed Aeroflot
money but said Aeroflot's figures were absurd and that AJT's
debts were significantly lower 5 million to 10 million rubles at
the most. His company will dispute the amount in court, he said.
Gusak said his company considers Aeroflot's suit as foul play on
Aeroflot's part against a competitor.


MEDIA-MOST: Tax Authorities Seek Liquidation
--------------------------------------------
Russian tax authorities have demanded the liquidation of the
Media-MOST empire headed by tycoon Vladimir Gusinsky, fighting
extradition from Spain, the independent media group said. The tax
inspectorate lodged the request before a Moscow arbitration
court, Agence France-Presse noted last week.


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

ICON MEDIALAB: Sees Q4 Loss of 50 Mln Skr
-----------------------------------------
Icon Medialab AB said it expects to post a 50 mln skr loss in
quarter four, before goodwill, restructuring costs and write-
offs. The company said the losses are mainly related to the
integration of its offices in London and Copenhagen, where it
will be laying off around 100 staff.

In view of its financial position, it added that it is
withdrawing its offer to the shareholders of Boathouse, the
holding company for Icon Medialab Asia. The company intends to
continue with its restructuring program and expansion, AFX
reported last week.


NOVADA: To Spin Off Subsidiaries in Attempt to Avoid Bankruptcy
---------------------------------------------------------------
Listed Swedish IT company Novada has failed to find a financier
to inject funds. According to managing director Anders Widesjo,
the company has no shareholders' equity and is on the brink of
bankruptcy. Anders Widesjo represents Dendera Holding on the
company's board. Dendera has refused to inject any further funds
into Novada, but as Novada has large receivables, the aim is to
try to avoid outright bankruptcy. Instead, the board is hoping to
reconstruct Novada, selling its four subsidiaries as separate
units.

"This is the only way to save the subsidiaries," said Widesjo,
who hopes it will be easier to find buyers for the spun-off
subsidiaries than to find an investor prepared to take on Vendera
as a single unit, Dagens Industri reported last week. Novada has
issued redundancy notices to a third of its staff.


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

GENERALE IMMOBILIERE: Real Estate Group Up for Sale
---------------------------------------------------
Generale Immobiliere, the Swiss real estate group formerly known
as Kramer, is experiencing financial problems, Le Temps & World
Reporter noted last week. According to Swiss press sources the
directors of the group, which is the subject of an inquiry and a
lawsuit, are presently trying to sell it to the highest bidder,
Le Temps & World Reporter reported last week. In the summer of
1999 Generale Immobiliere had a cash deficit of SFr10m, and the
situation has allegedly got worse since then.

Last spring the company had practically ceased payments. It is
the target of suits filed by several debtors, for over SFr2m.
Recently the commune of Plan-les-Ouates filed a lawsuit with a
view to recovering half a million francs from property loans, but
these proceedings were shelved, Le Temps & World Reporter noted.


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

BETEEM INDUSTRIES: Liquidation Proceedings
-------------------------------------------
Company Name: Beteem Industries Ltd
Company No: 1307992
Com. Business: Steel Fabricators
Appointed on: 08/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Frank A Hatch IPno: 8056 Thomas C Lammas 5555
Firm Name: Castle & Co
Address: Priory Chambers Priory Street
City Postcode: Dudley DY1 1HD


BREATHE.COM: Collapses with Losses of up to 50 Million Pounds
-------------------------------------------------------------
Breathe.com, the UK's fourth largest Internet service provider,
has collapsed with losses of up to 50 million pounds after a last
attempt to find a buyer.

PricewaterhouseCoopers were appointed as administrators to the
company after a hearing at Manchester High Court. The company is
said have spent up to 50 million pounds over the last two years,
Ananova reports this week.

Martin Dawes, the multi-millionaire mobile phone entrepreneur and
the company's majority shareholder, said to have invested up to
30 million pounds in Breathe. In March it offered free unmetered
Internet access for life via a free phone number for a single
lifetime payment of 50 pounds. Two weeks ago Breathe announced
that it was scrapping its free unmetered access service.

Michael Horrocks, the administrator and a partner at
PricewaterhouseCoopers, said to be meeting with staff,
shareholders and creditors this weekend. Breathe employs 140
people. "We will continue to trade the company while seeking to
sell it as a going concern. We are actively looking for
interested parties to maximize realizations and secure the future
for Breathe.com. There are no job losses anticipated at present,"
he said.


BROCKWELL PROPERTIES: Liquidation Proceedings
----------------------------------------------
Company Name: Brockwell Properties Lt
Company No: IR
Appointed on: 08/11/00
Type: Members
Appointed by: Members
Liquidators: Paul G Wyse IPno:
Firm Name: Oliver Freaney & Co
Address: 45 Northumberland Road Ballsbridge
City Postcode: Dublin 4


CONTINENTAL ASSURANCE:  Onslow Denies Insolvent Trading
-------------------------------------------------------
The Earl of Onslow, a former non-executive director of
Continental Assurance Company of London, told the high court in
London that he had done all in his power to prevent the collapse
of the firm over a eight-month period in which it had experienced
heavy losses. The company's liquidators allege that Lord Onslow
and seven other directors breached their legal responsibilities
and failed to ensure the company was solvent while trading, The
Guardian reported last week.

The board eventually placed Continental Assurance into
liquidation in March 1992 with debts of pounds 14m and a pounds
6m loss of shareholders' funds. Creditors hope to retrieve around
pounds 4.7m from directors. Stephen Atherton, counsel for the
liquidators, suggested that the board had not tried hard enough
to anticipate a series of large losses. Lord Onslow told the
court: "Insurance is a guessing game, however much people pretend
it is not." But he insisted that the board could not have
foreseen the regrettable losses experienced by the company.

The liquidators say that the directors should have known by July
1991 that Continental Assurance was unlikely to remain solvent.
When asked why he did not interrogate management over the some of
company's finances, he said he was not qualified to do so. "I am
not an accountant. And I am not sufficiently intelligent or well
read to dispute what they say." The case continues.


CORUS: Threat of Steel Strike as Jobs Axe Looms
-----------------------------------------------
Britain could face its first steel strike in 20 years after
analysts predicted that as many as 15,000 jobs could be lost in
the sector due to shrinking demand, Ananova reported last week. A
meeting of multi-union officials on Teeside has given bosses at
Corus, formed through the merger of British Steel and Dutch firm
Hoogovens, an ultimatum to start co-operating with them or face
the threat of strike action. The number of compulsory
redundancies across Teesside now stands at more than 100, with
many more feared in the New Year.

Union chiefs claim Corus is shirking its responsibilities towards
the workforce. These cover a range of issues, including unfair
selection criteria for compulsory redundancy and bringing in
temporary contractors. Workers claim the selection criteria for
compulsory redundancy favors management, and bosses are being
demoted on to the shop floor to take their jobs.

National officials from the ISTC union are due to meet the
executive board of Corus on December 22 to try to find an
agreement. That will follow a meeting of the multi-union
committee of the Scunthorpe works, which is expected to vote for
strike action.

Ananova noted that Corus spokesman said the company had done much
to minimize the impact of those job reductions by actively
seeking volunteers. As a result, it had been able to reduce the
number of compulsory redundancies to below 200. The spokesman
added that Corus had remained committed to minimizing job losses
and consulted unions on the selection method since July.
Unfortunately, no agreement had been reached and, because of the
urgent need to reduce costs, redundancy notices now had to be
given to those affected.


DONSIDE PAPER:  Faces Financial Crisis
--------------------------------------
Donside Paper Co. has been a major employer in Aberdeen for more
than 100 years. With a workforce of 370 in Aberdeen and 20 at a
distribution operation in Delaware, in the US, the mill
concentrates on the production of quality premium papers. The
mill was bought by a management buy-in team backed by Morgan
Grenfell Development Capital and the Royal Bank of Scotland in
1997, in a Pounds 33million deal.

It was thought at the time that this would ensure future job
security at the mill. Yet staffing levels and shifts were still
cut. Donside Paper Co still suffered due to the rise in the value
of the pound against continental currencies, Aberdeen Press &
Journal (UK) reported last week.

In an interview with the Press and Journal, Alastair Irvine, a
paper and packaging industry analyst with investment bank Merill
Lynch in London, said: "The paper industry as a whole is
consolidating. There have been a lot of takeovers and mergers,
with manufacturers tending to focus business a bit more on core
competencies. "Just what the future holds for the North-east's
paper companies is not clear the exchange rate difficulty, which
will at some point ease, is not the sole reason for the European
paper sector's troubles.

"The industry's main problem seems to be an irreversible one. The
European customer base is disappearing as businesses reject the
old-style multi-part forms which use car-bonless paper in favour
of computer-based products." Donside Paper Co was criticized at
Aberdeen Sheriff Court for its safety standards when a worker
died after being crushed by the fast-moving rollers of a huge
machine, Aberdeen Press & Journal (UK) noted.


EQUITABLE LIFE: MPs are Set to Intervene in the Crisis
------------------------------------------------------
MPs are set to intervene in the Equitable Life crisis as they
count up heavy losses from policies held with the insurer through
the parliamentary pension scheme. They are also under pressure
from their staff, large numbers of whom have Equitable pensions.
The House of Commons will debate the insurer's troubles and the
response of regulators today.

The debate was secured by Richard Ottaway, a member of the
Conservative's Shadow Treasury team. Liberal Democrats are also
planning to question Gordon Brown, the Chancellor, over the
affair. MPs wishing to save more for their retirement than is
available under the pension scheme are offered additional
voluntary contribution (AVC) policies with Equitable Life, The
Times reports yesterday.

The MP for Croydon South said he would lose 2,700 pounds by
transferring his AVC away from Equitable. He has also met members
of staff at the Commons to discuss the situation. Steve Webb, the
Liberal Democrat pension spokesman, said that Liberal Democrat
MPs were looking at taking action through select committees. The
Times has learned that Equitable's sales force has been told
redundancy packages would be on offer because a new owner will be
unlikely to transfer staff over on the same pay and conditions.
The business is being broken up to shore up its shaky finances.


FORD EUROPE:  Ford to Axe More Jobs in Europe
---------------------------------------------
Ford Motor Co. plans to reduce its European workforce by 10
percent a year as part of cost-cutting moves amid huge losses in
its European subsidiary, Reuters reports yesterday. The plan
follows Ford's decision to end car assembly at its Dagenham plant
near London with the loss of 1,350 jobs and comes amid mounting
job losses elsewhere in the UK car industry. In recent years,
Ford Europe has cut its workforce by six percent a year through
natural wastage and retirement schemes.

Reuters reports that losses generated by European subsidiaries of
Ford and General Motors Corp are expected to reach $3 billion
apiece in 2001, even at a time when sales in Europe are close to
record levels. Ford Europe lost $221 million in the third quarter
compared with a loss of $156 million in the same period last
year.


GLEN OFFSHORE: Liquidation Proceedings
---------------------------------------
Company Name: Glen Offshore Engineering Ltd
Company No: SC
Appointed on: 08/11/00
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


GRESHAM (DIY): Liquidation Proceedings
----------------------------------------
Company Name: Gresham (DIY) Ltd
Company No: NI
Com. Business: Property Rental
Appointed on: 08/11/00
Type: Members
Appointed by: Members
Liquidators: David A Lovesy IPno:
Firm Name:
Address: 3 Greenway Conlig
City Postcode: Newtownards BT23 3PZ


ICFI CORPORATE: Liquidation Proceedings
----------------------------------------
Company Name: ICFI Corporate Securities Fund Plc
Company No: IR
Appointed on: 08/11/00
Type: Members
Appointed by: Members
Liquidators: David Hargaden IPno:
Firm Name: Hargaden Moor
Address: Grand Canal House 1 Upper Grand Canal Street
City Postcode: Dublin 4


LLOYDS TSB: Plans 16,000 Job Cuts if Deal Reached with Abbey
------------------------------------------------------------
Lloyds TSB PLC is planning to axe 16,000 jobs from its enlarged
workforce if it succeeds in taking over Abbey National PLC. The
job cuts, which chief executive Peter Ellwood is planning to
spread over four years, are said to have been disclosed to Ian
Harley, his opposite number at Abbey National, during a meeting.
The combined workforce would go down to 91,000 from 107,000,
Ananova reports this week.

Last week Lloyds improved the terms of its informal bid proposal.
It is now offering 1.5 of its own shares plus 260 pence in cash
for each Abbey share, a deal that values each share at 13.10
pounds and the bank at 18.7 billion pounds. Harley rejected the
proposal, arguing that it was likely to be blocked by the
competition authorities and that Lloyds could not extract the
benefit of the cost savings it expected because customers would
abandon it. According to unnamed industry sources, the report
said that the move is an attempt to increase pressure on the
board of Abbey to open merger discussions, AFX News noted.


NRC (EDINBURGH): Liquidation Proceedings
------------------------------------------
Company Name: NRC (Edinburgh) Ltd
Company No: SC
Appointed on: 08/11/00
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


NIXDORF COMPUTER: Liquidation Proceedings
------------------------------------------
Company Name: Nixdorf Computer Group Pension Trust L
Company No: IR
Appointed on: 08/11/00
Type: Members
Appointed by: Members
Liquidators: Barry Caldwell IPno:
Firm Name: Caldwell & Co
Address: 135 Hillside
City Postcode: Greystones


UPSON INDUSTRIES: DTI Petition to Wind Up
-----------------------------------------
The Secretary of State for Trade and Industry has presented a
petition in the High Court to wind up in the public interest
Upson Industries Limited following investigations by Companies
Investigations Branch of the DTI under section 447 of the
Companies Act 1985 (as amended), M2 Presswire reported last week.
The petition was heard on December 2000. Upson Industries Limited
traded as Gas 2000 and supplied and installed gas central heating
systems.

Notes:

1. The registered office of Upson Industries Limited is at Armada
House, Montreal Road, Tilbury, Essex, RM18 8XX.

2. The petition was presented under Section 124A of the
Insolvency Act 1986.

3. All public inquiries concerning the company should be made to:
The Official Receiver Public Interest Unit 21 Bloomsbury Street
London WC1B 3SS


VAUXHALL: Union Leaders Take Fight to Save 2,200 Jobs
-----------------------------------------------------
Union leaders will fly out to Zurich in the New Year to plead
with Vauxhall's European managers to save 2,200 jobs at its Luton
plant, Ananova reported last week. Bill Morris, general secretary
of the Transport and General Workers Union, will tell Vauxhall's
bosses that there is no economic justification for the
redundancies. The union has not ruled out strike action in
protest at the decision, but stresses that it wants to put its
case to management first. The TGWU vowed to step up its campaign
to save the jobs after three hour talks between Mr Morris and
Vauxhall chief executive Nick Reilly failed to reach a consensus.

Mr Reilly told Mr Morris that the decision was inevitable and
there was little chance of change. During the meeting Vauxhall
workers took unofficial strike action across Britain. TGWU
spokesman said the fight went on.

"The meeting was positive because it was a chance to put the
workers' case to the company," the spokesman said. "We don't
believe they are justified in closing down Luton." Ananova noted
that the spokesman said Mr Morris's meeting in Zurich would be
part of the union's attempt to have constructive input on the
problem.


VAUXHALL:  More Car Plants at Risk
-----------------------------------
Vauxhall's Ellesmere Port car plant on Merseyside could be at
risk of closure. Ellesmere Port was on a list handed by unions to
the government earlier this year, which listed Vauxhall factories
believed to be seriously at risk of closure. Vauxhall could not
immediately be reached for comment, Reuters reports yesterday.

Last week Vauxhall's parent General Motors Corp announced it
would stop making cars at its plant in Luton, England, from the
first quarter of 2002 as part of efforts to revive loss-making
European operations, Reuters noted. Transport and General Workers
Union negotiator Tony Woodley had expressed fears for Ellesmere
Port after what he said were no more than half-hearted promises.
The closure of the Luton plant will mean 2,000 job losses.


VIRGIN MOBILE: Raises 115 Million Pounds in Debt from JP Morgan
---------------------------------------------------------------
Virgin Mobile will be able to continue its expansion plans after
raising 115 million pounds in debt arranged by JP Morgan. The
mobile company had been expected to go back to its parents,
Virgin Group and Deutsche Telekom AG unit One2One, for further
financing now that smaller telecoms companies are finding it
increasingly difficult to borrow, Ananova reports this week.

The company, which originally raised 100m pounds, now believes it
is fully funded and will use the ?115 million to expand its
distribution. Virgin Mobile now sells mobile telephones through
chains including J Sainsbury PLC, WH Smith PLC, Asda, Somerfield
PLC as well as Virgin's high street outlets, AFX News noted.



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

Troubled Company Reporter -- Europe is a daily newsletter co-
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USA, and Beard Group, Inc., Washington, DC USA.  Lexy Mueller,
Mercy Villacastin and Cristina Pernites Editors.

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

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