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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

       Wednesday, January 17, 2001, Vol. 2, No. 12

                         Headlines


A U S T R I A

MILLENIUM TELECOMMUNICATION:  Debts Reach 320 Million Shillings


F R A N C E

BULL:  Net Losses to Exceed 100 Million Euros


G E R M A N Y

ADORI AG:  Widening Losses  
EM.TV:  Dissent over Reforms Endangers Kirch Deal
PHILIPP HOLZMANN:  EU Probes Aid Package


G R E E C E

OLYMPIC AIRWAYS:  Swissair, Cyprus Airlines Show Interest


H U N G A R Y

KONZUMBANK RT:  Sale of Real Estate Holding
MALEV AIRLINES:  State Postpones Privatization
POSTABANK RT: Former Auditors May Seek Out of Court Settlement
POSTABANK RT:  More Shareholders to Sue Former Auditors


I R E L A N D

ICON COMPLEX:  Operations to Cease on January 31; 64 Jobs Hit


I T A L Y

FREEDOMLAND-ITN:  Resignation Sparks Ownership Structure Overhaul


P O L A N D

HUTA KATOWICE:  State Treasury appoints New CEO for Steel Mill


R U S S I A

MEDIA-MOST:  Prosecutors Summon Deputy Chief


U N I T E D   K I N G D O M

ALLDAYS PLC:  Sale of Stores Continues
COASTBELL LTD: Liquidation Proceedings
J B FAIRFAX: Liquidation Proceedings
LASTMINUTE.COM:  Announces Buy Back of Shares
MANSFIELD SAND: Liquidation Proceedings

NOTTINGHAM PROPERTY: Liquidation Proceedings
OVERSEAS MEDICAL: Liquidation Proceedings
SHARP PLANT: Liquidation Proceedings
VAUXHALL:  Says Luton Factory will Close


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

MILLENIUM TELECOMMUNICATION:  Debts Reach 320 Million Shillings
---------------------------------------------------------------
The board of directors of Millenium Communications Network (MCN)
estimates the company's debt at some 320 million schillings (23
million euros). A report by Agence France-Presse said that Georg
Stumpf will try to rescue his Internet and mobile telephone
company MCN from bankruptcy by applying for protection in a
Viennese court. In a bid to raise cash, Stumpf is selling
Europe's third tallest building -- the Millenium Tower skyscraper
-- for 4.5 billion shillings. Stumpf built the tower in 1998, and
also owns a leisure center nearby.

AFP reports MCN was close to bankruptcy in December. It dismissed
around 100 employees, and its shareholders infused 150 million
shillings into the company.

Stumpf is reportedly negotiating with the Austrian firm
Immofinanz over the building. He likewise plans to sell the
leisure center and recover his one billion-shilling investment in
it. The Austrian press doubts if any investor is interested in
the complex given the fact that Vienna is teeming with such
centres.


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

BULL:  Net Losses to Exceed 100 Million Euros
---------------------------------------------
Bull chairman Guy de Panafieu told financial daily Les Echos the
company's net loss for 2000 would likely exceed 100 million
euros. He expects the cash and debt situation to worsen after
Bull posted a 2.3 percent decline in its 2000 turnover. ETC
analyst Antonin Baudry forecasts break-even status at an
operational level in 2002 and a return to profit in 2003.

Reuters says Bull is continuing talks with U.S. firm Schlumberger
to sell its CP8 smart card division. It hopes to raise 300-400
million euros from the sale. Bull announced in November that it
would sell its Internet security software unit Evidian and
possibly some overseas branches. It is also seeking partners in
the services and server divisions.


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

ADORI AG:  Widening Losses  
--------------------------
The German firm Adori AG, a company that develops and operates
online shops on the Internet, posted losses for the first six
months of the financial year ending June 30, Handelsblatt said.

Losses before interest and taxes widened to DM6.6 million from
DM3.7 million in the same period last year. However, Adori's
sales figure grew from DM2.4 million to DM5.7 million. Wright
Investors Service data show the company has not paid dividends
during the previous two fiscal years.  


EM.TV:  Dissent over Reforms Endangers Kirch Deal
-------------------------------------------------
Talks between German media group Kirch and the troubled EM.TV &
Merchandising AG hit a standstill when both parties failed to
reach a consensus over the reforms to be implemented in the media
outfit. A source close to the talks told Reuters that top
executives failed to conclude the talks successfully.

The negotiation is now a subject of media speculation. Some say
EM.TV may be holding out for a more generous offer while Kirch
may be haggling for a better price. The unidentified source said
there are indications the talks could fail. Decisions necessary
for a successful conclusion have to be made from both camps or a
breakdown could result.  


PHILIPP HOLZMANN:  EU Probes Aid Package
----------------------------------------
The ongoing European Commission probe into the aid package made
by the German government to German construction firm Philipp
Holzmann AG will result in a "positive solution" according to a
Commission source. He told Reuters that a positive solution could
be found based on excerpts from a report by an independent
consultant hired by the commission last year.

The commission is still awaiting the consultant's report on the
legality of the 250 million mark ($120.3 million) rescue package
extended by the German government in November 1999 to save
Holzmann from insolvency.


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

OLYMPIC AIRWAYS:  Swissair, Cyprus Airlines Show Interest
---------------------------------------------------------
Two airlines are interested in acquiring a stake in the Greek
carrier Olympic Airways. According to Kathimerini, Cyprus
Airlines has officially expressed interest while Swissair will go
public soon. The report said Swissair, together with Latsis
banking and shipping group, are considering a bid to acquire
Olympic. Swissair is already in a joint venture with Latsis. It
provides ground-handling services at the Iraklion Airport in
Crete.

The Kathimerini report says this is a strong indication the
Latsis group could be included in the Swissair-led partnership.
Swissair is also entering into a partnership with Olympic
subsidiary Galileo Hellas, electronic provider of air services.

Meanwhile, Cyprus Airlines chairman Haris Loizidis said that the
company is in negotiations with investors to form a consortium
under its lead that would bid for a 10-30 percent holding in
Olympic.

Olympic's debts are estimated at around 40 billion drachmas ($113
million), while its revenues have been kept confidential for the
past two years.


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

KONZUMBANK RT:  Sale of Real Estate Holding
-------------------------------------------
Konzumbank Rt. confirmed to Hungary A.M. that it has sold an
unproductive real estate holding after the bank's 2000 earnings
failed to cover necessary risk provisions. Konzumbank, a
subsidiary of the Hungarian Development Bank Rt (MFB), will also
close four retail offices as part of a recovery program.


MALEV AIRLINES:  State Postpones Privatization
----------------------------------------------
The Hungarian State Privatization and Holding Co. (APV Rt) told
Hungary AM. on Monday that the planned partial privatization of
Malev Hungarian Airlines Rt has been indefinitely postponed. APV
said the focus has now shifted towards accelerating Malev's
involvement in an international airline alliance.

Earlier, APV Rt announced it was selling a majority stake in
Malev and invited 20 airlines to take part in the tender. It
plans to retain only 50 plus 1 vote out of its 97 percent stake
in Malev.

Reports in the Budapest Business Journal said Air France, KLM
Royal Dutch Airlines, Swissair and SAS Scandinavian Airlines have
been granted access to Malev's financial records after signing a
confidentiality agreement. The report also said that American and
Asian airlines are interested in acquiring the state-owned
airline.


POSTABANK RT: Former Auditors May Seek Out of Court Settlement
--------------------------------------------------------------
The three former auditors of Postabank Rt will likely seek an out
of court settlement for the lawsuit initiated by the bank's major
shareholders. Last week, five major shareholders -- the State
Privatization and Holding Co. (APV Rt), electricity wholesaler
MVM Rt, the Hungarian Development Bank Rt (MFB), Magyar Posta Rt
and national gambling company Szerencsejatek Rt sought legal
action against Deloitte & Touche Kft, Arthur Andersen Kft and
Prudential Kft. The Ft 100 billion lawsuit alleges that investors
received inaccurate information about Postabank's fiscal
situation.

Arthur Andersen executives said they are still investigating the
report. Deloitte & Touche issued a short statement, saying that
the audit of Postabank was conducted with due care,
professionalism and in accordance with the relevant domestic and
international standards and laws. Adam Tertak, managing partner
of Ernst & Young Kft, Postabank's current auditor, said it is
regular procedure to seek compensation from previous auditors of
a bankrupt company. Other executives familiar with the issue said
an out-of-court settlement would be favorable but it would be
less than the amount initially demanded.


POSTABANK RT:  More Shareholders to Sue Former Auditors
-------------------------------------------------------
Former individual shareholders of Postabank Rt are mulling over
the possibility of filing a lawsuit similar to one filed by the
state of Hungary against the former auditors of the bank, the
Budapest Business Journal reports. According to Gabor Hidasi,
owner and managing partner of Hidasi and Partner Law Firm, the
400 individual shareholders that he represents plan to claim
damages from the auditors.

They echo the position of the state claiming the auditors failed
to provide a fair and honest view of the bank's financial
situation between 1995 and 1998. Owners usually have five years
to decide whether to file a lawsuit against a company's auditors.
He added: "It is however not fair that majority shareholders
failed to include individual shareholders in the proceedings of
the court case."


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

ICON COMPLEX:  Operations to Cease on January 31; 64 Jobs Hit
-------------------------------------------------------------
Operations of Icon complex in the Leopardstown Racecourse will
cease by January 31, according to a company statement made
available to Doras. Launched at a cost of 17.5 million pounds,
the center suffers from poor visitor patronage.

Among Icon's shareholders are Bailey's with a 6.5 million pounds
investment and Leopardstown with 11 million pounds. The company
said its location hindered growth, but claims the venue has
"potential" within the local market as a bar and restaurant.


=========
I T A L Y
=========

FREEDOMLAND-ITN:  Resignation Sparks Ownership Structure Overhaul
-----------------------------------------------------------------
After vowing to remain in control of the company he founded,
Virgilio Degiovanni has stepped down as Freedomland's chairman.
His replacement, Luigi Guatri said that Freedomland's ownership
structure will be altered by the entry of new shareholders.
Degiovanni assured him he would not battle for control of his 65
percent majority stake.

Reuters says the company is searching for new investors and Ex-
Telecom Italia boss Franco Bernabe is one of several interested
in taking over Freedomland.

Freedomland's first quarter results show a loss of 60.2 billion
lire on sales of 62.6 billion lire.


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

HUTA KATOWICE:  State Treasury appoints New CEO for Steel Mill
--------------------------------------------------------------
Poland's state Treasury on Monday sacked Miroslaw Wrobel as CEO
of the country's largest steel mill, Huta Katowice. The plant's
former human resources manager Andrzej Capiga will replace him.
Senior Katowice official Justyna Lesniak told Reuters that the
Treasury gave no reason for the dismissal but observers cite the
failure of privatization talks and the firm's financial troubles
as the underlying reasons. Just recently, the state Treasury
rejected Wrobel's proposal that the state infuse capital into the
ailing steel manufacturer to save it from collapse.    

Meanwhile, Katowice suspended negotiations with Italy's machinery
producer Danieli and the world's largest iron ore producer,
Brazil's CVRD. Both companies were reportedly willing to
participate in the sell-off.

Reuters added that the goverment is now searching for foreign
investors willing to be joint partners in the country's second
largest steel mill, Huta Sendzimira, and two smaller plants, Huta
Cedler and Huta Florian.


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

MEDIA-MOST:  Prosecutors Summon Deputy Chief
--------------------------------------------
Andrei Tsimailo, deputy chief of Media-Most, was summoned to the
Russian Prosecutor-General's Office on Tuesday for questioning in
the criminal case against Vladimir Gusinsky. Itar-Tass said the
chief of the finance department Anton Titov was also summoned on
Monday. Police searched their offices last week, and documents
were seized including an inventory of Media-Most assets.


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

ALLDAYS PLC:  Sale of Stores Continues
-------------------------------------
Convenience store chain Alldays has sold 30 stores and two vacant
units to Costcutter Supermarkets. This brings to a total of 46
stores sold since November. Citywire reports that Costcutter paid
1.35 million pounds plus about 700,000 pounds for the stock. In
November, Alldays sold seven stores in East Anglia for 1.2
million pounds, and another nine stores in the southwest for 1.8
million pounds. Alldays will use the cash to reduce borrowings;
however, its current level of debt is not known.

Alldays initially planned to set up regional franchises, but
second half profits fell lower than the first half causing the
falling out with franchise holders.  


COASTBELL LTD: Liquidation Proceedings
---------------------------------------
Company Name: Coastbell Ltd
Company No: 3702673
Com. Business: General Building
Appointed on: 07/12/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: David P Hudson
IPno: 8977
Firm Name: Begbies Traynor
Address: The Old Exchange 234 Southchurch Road
City Postcode: Southend-on-Sea SS1 2EG


J B FAIRFAX: Liquidation Proceedings
-------------------------------------
Company Name: J B Fairfax Press Ltd
Company No: 1711040
Com. Business: Book Production
Appointed on: 07/12/00
Type: Members
Appointed by: The Court
Liquidators: Roderick J Weston
IPno: 8730
Firm Name: Deloitte & Touche
Address: 1 Woodborough Road
City Postcode: Nottingham NG1 3FG


LASTMINUTE.COM:  Announces Buy Back of Shares
---------------------------------------------
Lastminute.com co-founder Martha Lane Fox has offered to buy back
shares of the online retail outfit, Reuters reports. Lane Fox is
offering 380 pence per share -- the original issue price. The
Independent said Lane Fox made the e-mail offer to family and
friends including Hans Snook, CEO of mobile phone company Orange.

According to the news service, the offer could be in direct
violation of the guidelines set by the Financial Authority
concerning the disclosure of a director's share dealings. In the
March floatation, the maximum allocation of shares for retail
investors was restricted to 35 shares.

The offer of 380 pence per share is substantial considering
Friday's close of 75 1/2 pence.


MANSFIELD SAND: Liquidation Proceedings
----------------------------------------
Company Name: Mansfield Sand & Co (1999) Ltd
Company No: 743277
Com. Business: Sand Extraction/Brick Manufacture
Appointed on: 07/12/00
Type: Members
Appointed by: The Court
Liquidators: Roderick J Weston
IPno: 8730
Firm Name: Deloitte & Touche
Address: 1 Woodborough Road
City Postcode: Nottingham NG1 3FG


NOTTINGHAM PROPERTY: Liquidation Proceedings
---------------------------------------------
Company Name: Nottingham Property Ltd
Company No: 3146086
Com. Business: Property Co
Appointed on: 07/12/00
Type: Creditors
Appointed by: The Court
Liquidators: Andrew P Peters
IPno: 4468
Firm Name: Deloitte & Touche
Address: 1 Woodborough Road
City Postcode: Nottingham NG1 3FG


OVERSEAS MEDICAL: Liquidation Proceedings
------------------------------------------
Company Name: Overseas Medical Supplies Ltd
Previous Name: Diplomavend Ltd
Company No: 1604152
Com. Business: Export Medical Supplies
Appointed on: 07/12/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Richard A Segal
IPno: 2685
Firm Name: A Segal & Co
Address: Albert Chambers 221-223 Chingford Mount Road
City Postcode: London E4 8LP


SHARP PLANT: Liquidation Proceedings
-------------------------------------
Company Name: Sharp Plant Sales Ltd
Company No: 3045003
Com. Business: Plant & Machinery Sales
Appointed on: 07/12/00
Type: Creditors
Appointed by: The Court
Liquidators: Roderick J Weston
IPno: 8730
Firm Name: Deloitte & Touche
Address: 1 Woodborough Road
City Postcode: Nottingham NG1 3FG


VAUXHALL:  Says Luton Factory will Close
----------------------------------------
General Motors has decided to halt production at Vauxhall's Luton
factory, Annanova reports. Unions, meanwhile, are battling for
the plant's continued operation. General secretaries and national
officers are traveling to Zurich to convince management to
reverse its decision. They say the closure will hit at least
2,000 jobs at the plant and in other component firms.   



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

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

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