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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, January 9, 2001, Vol. 2, No. 6

                        Headlines

B E L G I U M

LERNOUT & HAUSPIE:  20 Percent Cut in Workforce
LERNOUT & HAUSPIE:  U.S. Management Seeks Belgian Branch Closure  


F R A N C E

ELECTRICITE MODERNE:  New Acquisition of Forclum SA
INTERCALL:  Mobile Phone Operator to Bid for Phone Card Firm
LIBERTYSURF:  UK Unit To Be Sold


G E R M A N Y

EM.TV: Help from Kirch May Be Conditional


I R E L A N D

TUSKAR RESOURCES:  Dissolution Is Possible


N E T H E R L A N D S

AMEFO:  Losses Lead to Insolvency


S P A I N

ARESBANK:  Shareholders Argue Over Bank's Future
JESMAR:  Now in Temporary Receivership


S W E D E N

NOVADA:  Parent Company Files for Bankruptcy


U N I T E D   K I N G D O M

ADVANCED ENERGY: Liquidation Proceedings
BIO-MEDICAL: Liquidation Proceedings
CORUS:  Impending Job Cuts
ECOSSE MEDICAL: Liquidation Proceedings
EQUITABLE LIFE:  Buyers Negotiate for Takeover

FOSSO MOLIANO: Liquidation Proceedings
LETSBUYIT.COM:  Administrators Assume Control
LIPA HOLDINGS: Liquidation Proceedings
NOVA CASTINGS:  Landmark Group is New Owner
SHIPDESK:  Online Shipping Casualty

NEW TARGET: Liquidation Proceedings
RYCARE: Liquidation Proceedings
SBBCOLD LTD: Liquidation Proceedings
TAMWORTH NIGHT: Liquidation Proceedings


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

LERNOUT & HAUSPIE:  20 Percent Cut in Workforce
-----------------------------------------------
Lernout & Hauspie chairman Roel Pieper told Reuters last Friday
that it would cut 20 percent of its staff worldwide as part of a
restructuring program. Pieper made the announcement outside a
court in Belgium after a ruling granting bankruptcy protection to
the firm was announced.

Pieper said the planned cut will start immediately -- 80 to 100
employees in its Belgian unit will be affected. He added that
half of this number constitutes temporary contracts that will not
be renewed.

L&H headquarters in the U.S. is already under bankruptcy
protection after an internal audit committee found that it has
overstated its revenues for the last two and a half years by as
much as $277 million. L&H is facing an investigation by U.S. and
European regulators; shareholders have likewise launched lawsuits
for the alleged sales misrepresentation. Its stock has lost
nearly all of its value, and trading has been suspended from the
U.S. Nasdaq market and the European Easdaq exchange.


LERNOUT & HAUSPIE:  U.S. Management Seeks Belgian Branch Closure  
----------------------------------------------------------------
Deminor, a firm representing the interests of private investors,
said the U.S. management of Lernout & Hauspie is doing everything
to close down its Belgian branch and restart the company under
U.S. chapter 11 arrangements, according to the World Reporter and
De Standaard.

Meanwhile, lawyers speculate that the Ypres court of commerce
ruling on Lernout & Hauspie's request for suspension of payment
will most likely be unfavorable for the speech technology
company.


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

ELECTRICITE MODERNE:  New Acquisition of Forclum SA
---------------------------------------------------
Electricite Moderne (EM), which has been in a state of
involuntary liquidation since November 21 has been granted a new
owner by the Marseilles business tribunal: Forclum SA, a
subsidiary of the French construction and civil engineering group
Eiffage SA. A report in La Tribune & World Reporter says Forclum
will retain 657 of the group's 675 employees. Forclum, which
specializes in electrical installations, posted a profit of FFr7
billion (1.1billion euros) in 2000.

Fayet and Eurelec Entreprises are also vying for control of
Electricite Moderne after the family-owned business said its
liabilities reached 30.5 million euros for a turnover of 64
million euros.


INTERCALL:  Mobile Phone Operator to Bid for Phone Card Firm
------------------------------------------------------------
Liberty Surf has confirmed its intention to submit an offer for
Intercall after the Nanterre business tribunal suspended
Intercall's market quotation. La Tribune & World Reporter says
Intercall, the pre-paid telephone card specialist, is currently
in a state involuntary liquidation and recently sold off its
Italian subsidiary Planet Communication in order to reduce
liabilities.
  
Liberty Surf, which is looking to become a "virtual" third-
generation mobile phone operator, is interested in Intercall's
pact with Bouygues Telecom. In the agreement, Intercall markets
offers under its own name using the Bouygues network.  

Deutsche Telekom AG and The Phone House are also said to be
interested in acquiring Intercall.


LIBERTYSURF:  UK Unit To Be Sold
--------------------------------
French-based Internet firm LibertySurf is planning to close its
operations in the UK, according to Annanova. LibertySurf is
confirming reports it is talking to parties interested in the
takeover.

The firm employs 110 workers in the UK and has offices in Spain
and Sweden. The retailer Kingfisher, which owns 35 percent of the
group, made no official comment on the news. LibertySurf, which
is estimated to have about 700,000 registered users across
Europe, closed its Danish and Dutch operations last summer.


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

EM.TV: Help from Kirch May Be Conditional
-----------------------------------------
A Kirch spokesman has denied reports that the company is seeking
the resignation of EM.TV's supervisory board chairman Nickolaus
Becker as a pre-condition for Kirch's buying a stake in the
troubled company.

In a statement to Reuters, the spokesman said, "we have no
preferences for the position of supervisory board chairman." A
source with knowledge of the talks told Reuters on Friday that
Kirch would buy a stake in the company if Becker leaves. It would
take a change in key personnel at EM.TV to restore Kirch's
confidence, he adds. Becker said over the weekend that he would
not resign. He told Welt am Sonntag: "I am to blame for nothing
and therefore resignation is not an issue for me."

The terms of a deal announced on December 4 says that Kirch is to
take a 16.74 percent stake in EM.TV and buy almost half of
EM.TV's 50 percent stake in Formula One holding company SLEC.
Kirch would also assume 25.1 percent of EM.TV's voting rights.
EM.TV's stock closed last Friday at 5.0 Euros, a 96 percent
devaluation from its all-time high of 120 Euros last February
2000.


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

TUSKAR RESOURCES:  Dissolution Is Possible
------------------------------------------
Tuskar Resources has advised Allied Energy, one of its creditors,
to apply to the high court for the dissolution of the firm. This
move follows reports that Tuskar is in dispute with Cavendish
Petroleum Nigeria over its oil fields in Obe and is planning to
take the case to the London Court of International Arbitration.

Doras reports that Cavendish has made numerous attempts to
normalize its relationship with Tuskar. Tuskar counters that
Cavendish had deliberately caused problems with the off loading
of and transportation of the oil out of Nigerian waters. A
statement reads: "With no prospect of the oil being off loaded
and sold, Tuskar is unable to generate revenues, and accordingly,
is unable to pay its expenses and obligations." The ability to
continue operations appears in doubt, the company said.


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

AMEFO:  Losses Lead to Insolvency
---------------------------------
AMEFO, the Dutch producer of aluminum parts, was declared
insolvent by the court in Zwolle after Dutch Bank ING blocked its
credit line in December. The court has appointed Mr. J. Kroes as
receiver of Amefo. Algemeen Dagblad & World Reporter said over
the weekend that Amefo, the former Phillips subsidiary, saw
losses increase by Fl 1.5 million per month.

The January 5 edition of Het Financieele Dagblad & World Reporter
says Amefo then resumed production of aluminum units for airbags
Wednesday night. The company's employees were sent home Tuesday
night with no assurance of further employment but the Dutch bank
ING provided bridging 4 credit to facilitate the reopening. The
move is a bid to make Amefo more attractive to prospective
buyers.   


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

ARESBANK:  Shareholders Argue Over Bank's Future
------------------------------------------------
The shareholders of Banco Arabe Espanol (Aresbank) failed to
achieve a consensus over the bank's future. The Spanish
shareholders -- BBVA, BSCH, Banco Atlantico and Sepi, which
together control a 34 percent stake -- will meet on January 10 to
resolve the situation. El Mundo & World Reporter said that the
Spanish shareholders are favoring the bank's structured
liquidation.

Previously, Reuters reported that the state banks of Libya and
Kuwait, which control 60 percent of the bank, want to keep it
afloat and have recently agreed to a Pta 5.5 billion capital
increase, preventing the bank's insolvency. The funds will
however come from a loan that the bank's partners were already
committed to furnishing.

Established in 1975, the bank now faces an unexpected court
demand for bail of 13.3 billion pesetas connected with a property
that it embargoed.


JESMAR:  Now in Temporary Receivership
--------------------------------------
One of Spain's leading toy companies has announced temporary
receivership. Jesmar's disclosure came as a surprise to many
since the toy industry is now in an upswing. The company is now
laying-off 90 of its 110 permanent employees. During peak
production season, Jesmar's seasonal employees could number as
much as 300, the El Mundo (Spain) & World Reporter said.

Unions fear that Jesmar will transfer production to counties
where labor is relatively cheap. Jesmar holds stakes in companies
in Brazil, Puerto Rico, Chile, Mexico and the United States.

Juan Antonio Macia, a representative of UGT union said 90
redundancies out of 110 mean that the company has no viability
plan in place. Workers blame poor management decisions leading to
lost orders as the reason for the company's collapse.


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

NOVADA:  Parent Company Files for Bankruptcy
--------------------------------------------
Novada's chief financial officer Per-Ola Celander told Dagens
Industri that the "company's board was of the opinion that it was
not possible to continue operations."

The firm's parent company along with its subsidiaries Novada
System and Novada Competence filed for bankruptcy and plans to
lay-off 10 to 20 percent of the group's employees. The e-learning
group Novada is listed on Aktietorget.


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

ADVANCED ENERGY: Liquidation Proceedings
-----------------------------------------
Company Name: Advanced Energy Products Ltd
Company No: 2833147
Com. Business: Retail Energy Products
Appointed on: 22/11/00
Type: Creditors
Appointed by: Creditors
Liquidators: Roderick J Weston
IPno: 8730
Firm Name: Deloitte & Touche
Address: 1 Woodborough Road
City Postcode: Nottingham NG1 3FG


BIO-MEDICAL: Liquidation Proceedings
-------------------------------------
Company Name: Bio-Medical Systems Ltd
Company No: SC69118
Com. Business: Dormant
Appointed on: 22/11/00
Type: Members
Appointed by: Members
Liquidators: Ian C Oakley Smith
IPno: 8890 David J Waterhouse 5732
Firm Name: PricewaterhouseCoopers
Address: Plumtree Court
City Postcode: London EC4A 4HT


CORUS:  Impending Job Cuts
--------------------------
Union leaders of the Iron and Steel Trades Federation will meet
with the management of Anglo-Dutch company Corus on the reported
reduction of 10,000 jobs. The union leaders want assurances that
the job losses will not involve compulsory redundancies. They
also want more details on Corus's restructuring plans after the
company gave warning of radical restructuring last month. The
Times said that if talks fail, workers at a Scunthorpe plant
would be balloted on industrial action later this week while
ballots at other plants could also follow.

Bloomberg earlier reported that the crude steel plants in
Llanwern and Teesside could be hardest hit with the planned
retrenchment of 7,000 workers.

Corus, Europe's second biggest steelmaker, was formed by British
Steel's $2.4 billion acquisition of Royal Hoogovens NV of the
Netherlands. Share price has fallen 44 percent since the October
1999 merger.


ECOSSE MEDICAL: Liquidation Proceedings
----------------------------------------
Company Name: Ecosse Medical Ltd
Company No: SC92691
Com. Business: Dormant
Appointed on: 22/11/00
Type: Members
Appointed by: Members
Liquidators: Ian C Oakley Smith
IPno: 8890 David J Waterhouse 5732
Firm Name: PricewaterhouseCoopers
Address: Plumtree Court
City Postcode: London EC4A 4HT


EQUITABLE LIFE:  Buyers Negotiate for Takeover
----------------------------------------------
The Gurdian reported on Monday that there is increased
speculation that UK insurer Prudential and Dutch financial
services group Aegon NV are negotiating for Equitable's takeover.
The Guardian adds that a buyer for the troubled company could be
found if a compromise deal to limit liabilities could be
guaranteed. Equitable earlier attracted 15 firms but there had
been concerns about the need to pay annuities.

In a separate report, Reuters said Equitable Life Action Group,
one of the leading policyholder lobby groups, was prepared to
agree to a compromise that would see customers forego rights to
higher returns in exchange for a one-off payment.

In December, Equitable sold its Permanent Insurance Co. unit to
Liverpool Victoria for 150 million pounds to raise cash.


FOSSO MOLIANO: Liquidation Proceedings
---------------------------------------
Company Name: Fosso Moliano Ltd
Previous Name: Blue Star Corporation (EU) Ltd
Company No: 2947540
Appointed on: 22/11/00
Type: Members
Appointed by: Members
Liquidators: David J Pallen
IPno: 5317
Firm Name: Ernst & Young
Address: Rolls House 7 Rolls Building Fetter Lane
City Postcode: London EC4A 1NH


LETSBUYIT.COM:  Administrators Assume Control
---------------------------------------------
Court-appointed administrators assumed control of debt-ridden
Internet retailer LetsBuyIt.com after its current management
resigned en bloc last week, the daily Telegraph reports. John
Palmer, the company's founder and supervisory board member will
act as temporary chief executive, a company statement said.

The company has also stopped taking in new orders -- a sign
saying "window shopping only" is posted on its Web site -- while
the company is shopping for new investors. The company hopes this
move will buy it time and see it through until the projected
break date of 2002 comes. In a statement, UK managing director
Peter Jaco said: "We had a number of investors interested, but we
took the prudent step of seeking administration while we still
had money in the bank."

The company earlier sought protection from its creditors in a
Dutch court and thereafter suspended stock trading. When trading
resumed on Tuesday the price plummeted from Euro 1.25 (79p) to 54
cents by the close.


LIPA HOLDINGS: Liquidation Proceedings
---------------------------------------
Company Name: Lipa Holdings Ltd
Company No: 2711969
Com. Business: Property Developers
Appointed on: 22/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Jonathan R Booth
IPno: 7486
Firm Name: Parkin S Booth & Co
Address: 44 Old Hall Street
City Postcode: Liverpool L3 9EB


NOVA CASTINGS:  Landmark Group is New Owner
-------------------------------------------
Landmark Group of Hall Green has purchased the Birmingham
castings firm Nova Castings for an undisclosed sum. Nova Castings
went into administrative receivership last October 2000 after
declaring a debt of 1 million pounds, the Evening Mail revealed.
Production continues in its zinc die-cast factory but it's not
clear whether the company's 52 employees are affected.  

The 13-year-old firm is facing tough competition in the motor
industry and is a victim of the industry's grim trading
conditions.

A creditors meeting was held yesterday at the Birmingham offices
of receivers Moore Stephens Booth White, the Evening Mail
reports.


SHIPDESK:  Online Shipping Casualty
-----------------------------------
Online shipping exchange Shipdesk went into liquidation after
failing to attract new investors. Investors like antfactory with
a 14pc stake in the business are now faced with a hefty loss.
Whitney & Co and Citicorp Venture Capital offered the project an
initial facility of $350m last year but Shipdesk may have
borrowed further.

Recently, shipping financiers Tufton Oceanic and software house
OptiMark Technologies withdrew their support, plunging the
company into deeper financial trouble. The Daily Telegraph
reports that the company was forced to close down just before
Christmas after being in business for about a year.  

The closure clears the way for rival LeavelSeas, a company
founded in April of last year that aims "to deliver the benefits
of new technology to bulk ocean transportation through the
provision of voyage management services and a 'life of voyage'
chartering system". Companies such as BP and Royal Dutch Shell
back it.


NEW TARGET: Liquidation Proceedings
------------------------------------
Company Name: New Target Fund Plc
Company No: IR
Appointed on: 22/11/00
Type: Members
Appointed by: Members
Liquidators: Aidan R O'Connell
Firm Name: Deloitte & Touche
Address: Earlsfort Terrace
City Postcode: Dublin 2


RYCARE: Liquidation Proceedings
--------------------------------
Company Name: Rycare Cleaning Machinery Ltd
Company No: 3289009
Com. Business: Manufacture of General Machinery
Appointed on: 22/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Philip J Gorman
IPno: 8069
Firm Name: Hazlewoods
Address: Windsor House Barnett Way Barnwood
City Postcode: Gloucester GL4 3RT


SBBCOLD LTD: Liquidation Proceedings
-------------------------------------
Company Name: Sbbcold Ltd
Previous Name: South Bucks Bridge Club Ltd
Company No: 2855505
Com. Business: Dormant
Appointed on: 22/11/00
Type: Members
Appointed by: Members
Liquidators: James P Shaw
IPno: 6084
Firm Name: Myers Clark
Address: Woodford House Woodford Road
City Postcode: Watford WD1 1DL


TAMWORTH NIGHT: Liquidation Proceedings
----------------------------------------
Company Name: Tamworth Night Patrol Ltd
Company No: 3154846
Com. Business: Public Security Law/Order
Appointed on: 22/11/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Myles L Halley
IPno: 6658 Mark J Orton
Firm Name: KPMG
Address: 2 Cornwall Street
City Postcode: Birmingham B3 2DL



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,
Jessie Elumba and Cristina Pernites, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2754.

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