/raid1/www/Hosts/bankrupt/TCREUR_Public/010116.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

        Tuesday, January 16, 2001, Vol. 2, No. 11

                         Headlines


B E L G I U M

LERNOUT & HAUSPIE:  Employees Accept Lay-off Terms
REAL SOFTWARE:  Uncertainty Sends Shares Tumbling


C Z E C H   R E P U B L I C

AQUA IDA:  Now Bankrupt
LET KUNOVICE:  Creditors Want New Owner
ZELEZARNY A DRATOVNY:  Bekaert Assumes Control of Facilities


F R A N C E

KOOBUYCITY.COM:  Court Accepts Takeover Bid


G E R M A N Y

EM.TV:  Chairman Denies Insider Trading Scam
MEDIMA GMBH:  Poor Sales Blamed for Insolvency


G R E E C E

OLYMPIC AIRWAYS:  Swissair Bids for Minority Stake


H U N G A R Y

FUZFO PAPER:  Shareholders Declare Insolvency


N E T H E R L A N D S

LETSBUYIT.COM:  CoShopper.com is Latest Bidder


P O L A N D

HUTA KATOWICE:  No Financier for 300 Million Monthly Budget     


S P A I N

JESMAR:  Workers Reject Redundancy Plan


S W E D E N

PROSOLVIA AB:  Prosecutor Links Chairman to Bankruptcy


U N I T E D   K I N G D O M

BCCI:  Creditors Pursue Damages Claim
CASTLETON HOMES: Liquidation Proceedings
EQUITABLE LIFE:  New Actuary Seeks Compromise Deal
HOFFMAN-MCIVOR LTD: Liquidation Proceedings
MILLENIUM MECHANICAL: Liquidation Proceedings
SOGO (UK): Liquidation Proceedings


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

LERNOUT & HAUSPIE:  Employees Accept Lay-off Terms
--------------------------------------------------
Emloyees of Lernout & Hauspie Speech Products have agreed to the
collective lay-off terms set by the company's Works Council. The
agreement was reached after a vote of 90 percent approved the
pact. The company's press release said the agreement would govern
the lay-off terms of 60 employees subject for dismissal. Among
other features, the plan includes the formation of an employee
placement service to help all employees involved in their search
for a new job.      


REAL SOFTWARE:  Uncertainty Sends Shares Tumbling
-------------------------------------------------
Real Software shares crashed more that 20 percent and reached a
new low during Friday's trade amid general uncertainty about the
company's performance. Investors are clamoring for updates on the
company's operations, reported management problems and news about
its troubled U.S. unit, Tava Technologies.

Reuters reports that Chief Executive Rudy Hageman is facing
strong internal pressure to resign. Meanwhile bargain hunters are
foreseeing more stock devaluation as Real Software declines to
comment on the situation.

According to Wright Investor's Service profile, the company's
long term debt as of December 1999 was Euro155.34 million and
total liabilities (i.e., all monies owed) stood at Euro285.17
million.


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

AQUA IDA:  Now Bankrupt
-----------------------
Czech A.M. has confirmed the bankruptcy of mineral water producer
Aqua IDA. The news comes after unverified reports said company
employees had not received pay since November and production was
suspended on December 22.


LET KUNOVICE:  Creditors Want New Owner
---------------------------------------
Creditors of aircraft producer LET Kunovice are seeking a buyer
for the company and have ordered the receiver to look for
potential investors, Czech A.M. reports. The creditors believe
that LET may survive its financial crisis if a new owner is found
by the end of the year. At present, seven preliminary bids are
reportedly being considered.

According to the same January 9 report by Czech A.M., LET
Kunovice owes Kc 3.5 billion to its creditors.


ZELEZARNY A DRATOVNY:  Bekaert Assumes Control of Facilities
------------------------------------------------------------
A court settlement will allow Belgian metallurgy firm Bekaert to
assume control over some of the facilities of Zelezarny a
Dratovny Bohumin.

Czech A.M. reports that Bekaert now has two joint ventures with
ZDB, but did not specify which of the ZDB facilities would be
taken over. ZDB has pledged payment of its Kc 2.65 billion debt
by August 2002.


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

KOOBUYCITY.COM:  Court Accepts Takeover Bid
-------------------------------------------
The Paris commercial court has accepted the offer of Impact Net
for KoobuyCity.com. Les Echos said the French e-mail service
provider would continue KoobuyCity.com's activities, although it
will modify its marketing and logistics strategies.

KoobuyCity declared bankruptcy in November 2000 after its sales
figure of FFr 850,000 fell short of its target FFr 12 million
turnover announced in June 2000.


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

EM.TV:  Chairman Denies Insider Trading Scam
--------------------------------------------
The chairman of German media group EM.TV & Merchandising AG has
denied allegations of insider trading, according to the Financial
Times. In a letter to the company's employees, Thomas Hoffa
wrote: "I never sold nor bought EM.TV shares last year, except
the sale of 200,000 shares in February."

An EM.TV spokesman told Handelsblatt that the letter was well
received by the staff. He said that despite the barrage of bad
news, the company is not losing its staff but rather increasing
hiring.

Hoffa's letter also reassured employees that the Kirch deal is
still on. In a memorandum of understanding signed on December 4,
KirchGruppe AG plans to acquire 25 percent of EM.TV and half of
its rights in Formula One in exchange for 550 million dollars in
cash and programming rights. EM.TV said that the talks could be
concluded soon, possibly by mid-February or earlier.


MEDIMA GMBH:  Poor Sales Blamed for Insolvency
----------------------------------------------
Medima GmbH (Maulburg) is blaming the unusually mild winter for
poor sales of its angora winter underwear. The Frankfurter
Allgemeine Zeitung reported over the weekend that underwear
manufacturer Medina says a lack of winter sales and liquidity
problems has led to its filing for insolvency at a Waldshut
municipal court.

The company posted losses in 1999. In addition, the recent reform
of the health system has led to the closure of many specialty
shops for medical supplies -- Medima's main distribution channel.
Medina now plans to sell its products to department stores and
lingerie shops.

Two recovery plans have been proposed: downsizing or seeking an
alliance.


===========
G R E E C E
===========

OLYMPIC AIRWAYS:  Swissair Bids for Minority Stake
--------------------------------------------------
Swissair is interested in acquiring a minority stake in the Greek
national carrier Olympic Airways. Reuters quoted Greek newspaper
Kathimerini as saying Swissair is participating in the tender,
and is likewise interested in working with Galileo Hellas, an
Olympic subsidiary providing electronic airline services.

Greece is selling Olympic Airways after the airline amassed a
debt of 100 million dollars. Reuters hinted that five other
airlines are interested in Olympic, but fell short of identifying
them.


=============
H U N G A R Y
=============

FUZFO PAPER:  Shareholders Declare Insolvency
---------------------------------------------
The shareholders of Fuzfo EGM have declared the company insolvent
during its general meeting on January 8. According to Hungary
A.M., Fuzfo owes Ft 1.3 billion to its suppliers, Ft 600 million
to various banks and Ft 120 million to the National Tax Office
(Apeh). The report adds that the liquidation process has started,
but no court ruling has been made yet.        


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

LETSBUYIT.COM:  CoShopper.com is Latest Bidder
----------------------------------------------
Swiss company CoShopper.com has revealed that it is in talks with
Letsbuyit.com for a possible takeover. It says the e-tailer has
qualified employees, a good customer basis and above all, high
brand awareness.

Marc Schlett, marketing director for CoShopper's German sector
said the decision to acquire Letsbuyit came after the mass
resignation of Letsbuyit managers last month. CoShopper also says
it assumes Letsbuyit comes with a bargain price tag.  


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

HUTA KATOWICE:  No Financier for 300 Million Monthly Budget     
-----------------------------------------------------------
Poland's largest steel mill, Huta Katowice (HK), needs 300
million zlotys monthly to sustain operations or face closure.
According to Rzeczpospolita & World Reporter, HK is looking for a
source of financing since banks stopped extending short-term
loans to the state-owned plant.

Earlier this week, Reuters wrote that HK asked the state treasury
to increase its capital by 660 million zlotys, possibly through
an issue of shares to its creditors or a transfer of capital from
another state mill. Edward Nowak, deputy economy minister in
charge of the steel sector hinted that the state may support the
move if it leads directly to the plant's privatization.

HK, whose debt topped two billion zlotys last year, is also
asking creditors for a possible debt moratorium. Rzeczpospolita
said if the financing and privatization problems are not resolved
by the end of March, the plant might face liquidation.


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

JESMAR:  Workers Reject Redundancy Plan
---------------------------------------
The employees of the Spanish toy manufacturer Jesmar have
rejected the redundancy plan proposed by its management,
according to The Expansion. Jesmar, which is in temporary
receivership, intends to lay-off 64 workers, or 58 percent of the
workforce for one year.

Unions suggested a three-month lay-off period and the payment of
up to 100 percent of net salaries. They also want the company to
abandon production outsourcing plans and the formation of a
monitoring committee for any agreement reached.


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

PROSOLVIA AB:  Prosecutor Links Chairman to Bankruptcy
------------------------------------------------------
Public prosecutor Per Kind has named Prosolvia chairman Claes
Hammer a suspect of financial crime in relation to the company's
bankruptcy, Dagens Industri reports. Hammer now joins former
Prossolvia AB principal shareholders Dan Leijerskar and Morgan
Herou as suspects of serious fraud and accounting malpractice.

A finance director, a subsidiary managing director and a sales
director are also allegedly involved, but Lind did not identify
them. He will announce this spring if the case will reach the
courts.


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

BCCI:  Creditors Pursue Damages Claim
-------------------------------------
The creditors of Bank of Credit and Commerce International (BCCI)
will pursue its claim for 550 million pounds plus interest as
damages suffered when the bank collapsed ten year ago. The 6,000
creditors will seek permission from the House of Lords to sue the
Bank of England for failing to protect them. They claim Bank of
England officials knew of the alleged money laundering in BCCI
but did not intervene until it was too late to save the bank.

The House of Lords dismissed the case in May, saying it has no
merit under European law, but advised the creditors to make
another claim under UK law. The Times reports a settlement would
probably reach one billion pounds.
      

CASTLETON HOMES: Liquidation Proceedings
-----------------------------------------
Company Name: Castleton Homes Ltd
Company No: SC
Appointed on: 06/12/00
Type: Creditors
Appointed by: Creditors
Liquidators: J M Hall
Firm Name: BKR Haines Watts
Address: 9 Coates Crescent


EQUITABLE LIFE:  New Actuary Seeks Compromise Deal
--------------------------------------------------
Charles Thomson, the newly appointed actuary of Equitable Life,
has urged all parties to develop a plan to save the troubled
mutual life insurer. Thomson told the Times on Monday "there
probably isn't one right solution. Compromises will have to be
made." Thomson's call is an echo of the proposal made by various
groups like the Financial Services Authority (FSA) and the
Equitable Life Guaranteed Annuity Action Group, which both favor
an agreement acceptable to Equitable's policyholders.             

Equitable is reportedly planning to ask an independent QC to
examine the House of Lords ruling that Equitable's move to cut
bonuses to guaranteed annuity holders is illegal. However,
lawyers for the mutual life insurer say it is not possible to
amend the Lords decision.


HOFFMAN-MCIVOR LTD: Liquidation Proceedings
--------------------------------------------
Company Name: Hoffman-McIvor Ltd
Previous Name: R McIvor & Sons (Engineers) Ltd
Company No: 159014
Com. Business: Dormant
Appointed on: 06/12/00
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


MILLENIUM MECHANICAL: Liquidation Proceedings
----------------------------------------------
Company Name: Millennium Mechanical Services Ltd
Company No: 3253882
Com. Business: Mechanical Engineering Services
Appointed on: 06/12/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Alan R Clifton
IPno: 8766
Firm Name: Downham Train Epstein
Address: Apex House Grand Arcade Tally Ho Corner
City Postcode: London


SOGO (UK): Liquidation Proceedings
------------------------------------
Company Name: Sogo (UK) Ltd
Company No: 2511625
Com. Business: Retail
Appointed on: 06/12/00
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



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-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lexy Mueller,
Jessie Elumba and Cristina Pernites Editors.

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

This material is copyrighted and any commercial use, resale or
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