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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

        Thursday, January 18, 2001, Vol. 2, No. 13

                         Headlines


B E L G I U M

LERNOUT & HAUSPIE:  New CEO to Lead Company Through Recovery
SABENA AIRLINES: Net Assets Fall Below 50 percent of Capital


C Z E C H   R E P U B L I C

CKD DOPRAVNI:  Siemens Pursues Takeover Bid


G E R M A N Y

EM.TV:  Investor Confirms Project Delay
EM.TV:  Kirch Talks Still on Track
INTERSHOP COMMUNICATIONS:  Analysts Downgrade Overvalued Shares
ADAM OPEL:  Loss of Market Share Blamed for Widening Losses


G R E E C E

OLYMPIC AIRWAYS:  Swissair Wants Majority Stake


N E T H E R L A N D S

LETSBUYIT.COM:  Trustees Postpone Announcement of Rescue Deal


R U S S I A

MEDIA-MOST: Prosecutors Suspect Illegal Ties with City Government


S P A I N

GIGABELL IBERICA:  Jippii is New Owner


U N I T E D   K I N G D O M

EQUITABLE LIFE:  Clamor for Ombudsman Inquiry Grows
HUNTINGDON LIFE:  Denial of Bank Loan May Lead to Receivership
INFORMATION BUSINESS: Liquidation Proceedings
INTERNATIONAL HARDWARE: Liquidation Proceedings
MILLENIUM DOME:  Sale Possible Within Weeks

SOMERFIELD PLC:  Losses Mount in First Half
SUCCUBUS LTD: Liquidation Proceedings
UREGARE LTD: Liquidation Proceedings
VELITAR LTD: Liquidation Proceedings


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

LERNOUT & HAUSPIE:  New CEO to Lead Company Through Recovery
------------------------------------------------------------
The Board of Directors of Lernout & Hauspie, a Belgian speech and
language technology firm, announced on Tuesday that it has
appointed Philippe Bodson to be its new Chief Executive Officer.
A member of the board of directors cited Bodson's experience as a
crisis manager to explain his selection as the ideal candidate to
lead Lernout & Hauspie through its worldwide recovery. Bodson is
also a member of the Belgian senate.

The company's press release stated outgoing CEO John Duerden will
remain as a director of the company. Meanwhile, AFX reports L&H
co-founder Jo Lernout has decided to resign as a member of the
board but will remain as chief technology officer.


SABENA AIRLINES: Net Assets Fall Below 50 percent of Capital
------------------------------------------------------------
Sabena spokesman Wilfried Remans said the airline is calling for
a shareholders' meeting as required by Belgian corporate law when
a company's net assets fall below 50 percent of its capital. The
meeting scheduled for February 8 is centered on a possible
recapitalization by its two shareholders: the Swiss conglomerate
SairGroup and the Belgian government.  

Elke Jeurissen, a spokeswoman for the Ministry of State Holdings,
confirmed it is in talks with SairGroup for a possible increase
in the conglomerate's holdings from 49 percent to 85 percent. She
said a deal could be expected as soon as this week. However, an
unconfirmed report published in the Swiss newspaper
SonntagsZeitung said the SairGroup is still undecided and may
even abandon its associates in Belgium and France.

Sabena is optimistic its current restructuring will limit its
2001 operating losses. Remans says the airline will release its
2000 figures on March 2. The estimated losses of eight billion
Belgian francs will likely be confirmed.


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

CKD DOPRAVNI:  Siemens Pursues Takeover Bid
-------------------------------------------
Germany's Siemens is pursuing its bid to acquire Prague-based
engineering company CKD Dopravni systemy. Siemens spokesman
Eberhard Dombek told CKD that the purchase would strengthen its
position in the East European market. The bid will be discussed
during Czech PM Milos Zeman's visit to Munich.


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

EM.TV:  Investor Confirms Project Delay
---------------------------------------
German media investment fund Victory Media AG has confirmed to
Reuters the delay of a project to help EM.TV finance the
development of cartoon films. The agreement will provide EM.TV an
estimated 100 million marks per year from 2000 to 2004. Victory
Media chief Franz Landerer said Victory furnished only 25 million
marks to EM.TV last year. He blamed lower than expected inflows
for the discrepancy.


EM.TV:  Kirch Talks Still on Track
----------------------------------
EM.TV & Merchandising AG's chief executive Thomas Haffa told
reporters on Tuesday the Kirch talks are still on track contrary
to earlier reports saying negotiations have irreversibly bogged
down. Reuters reports that Kirch sent EM.TV. a fax on Monday
confirming its desire for continued dialogue. A Kirch spokesman
said the talks were in a critical phase but did not elaborate.
Sources close to the talks say some demands of the German media
giant may not be acceptable to EM.TV.     

The terms of a rescue deal announced on December 4 will give the
Kirch Group 25 percent voting rights in EM.TV and half of EM.TV's
stake in Formula One holding company SLEC.


INTERSHOP COMMUNICATIONS:  Analysts Downgrade Overvalued Shares
---------------------------------------------------------------
Investment banks are adjusting their ratings of Intershop
Communications shares after news of the Neuer Markt crash.
Analysts are now advising investors to turn away from overvalued
stocks. According to Efinancial, UBS Warburg recommends 'hold',
Lehman 'neutral' and ABN Amro and Sal Oppenheim 'reduce'. House
broker Vontobel Securities offers the strongest advice: caution.

Oliver Maslowski of Vontobel Securities in Cologne said: "Nearly
all the analysts were too optimistic." Early last year, Vontobel
had already placed Intershop Communications AG on `neutral.' Just
weeks before the market crash and the lawsuit surfaced, analysts
encouraged investors to accumulate shares, calling it a strong
buy.

The German communications giant is now facing a lawsuit for
allegedly misleading investors. The German law firm Tulp &
Kaelberer is representing more than 100 retail investors who are
also planning to sue the communications firm.  


ADAM OPEL:  Loss of Market Share Blamed for Widening Losses
-----------------------------------------------------------
Opel is blaming widening losses for the reduction of its European
market share. From a peak of 17 percent in 1995, it slid to 12.2
percent in mid-2000.

The Financial Times reports the planned resignation of Adam
Opel's chairman Robert Hendry could be a related development.
Company insiders say he plans to ask the supervisory board to
relieve him of his duties at its next meeting on March 28. The
board is expected to nominate Carl-Peter Forster, a former member
of the management board at BMW as Hendry's replacement.


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

OLYMPIC AIRWAYS:  Swissair Wants Majority Stake
-----------------------------------------------
A Swissair spokesman confirmed reports that the Swiss aviation
conglomerate SairGroup is aiming for a majority stake in the
Greek carrier Olympic Airways. This refutes a report by the
Athens daily newspaper Kathimerini saying Swissair is interested
only in a minority stake.

Swissair now joins Cyprus Airways as the other serious bidder for
a majority stake. Cyprus Airways said it wants 10-30 percent of
Olympic while Swissair did not quote a figure.

According to Reuters, the state privatization committee is
selling up to 65 percent of its shares in the airline and wants a
deal soon. Credit Suisse First Boston is advising the government
on the tender.


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

LETSBUYIT.COM:  Trustees Postpone Announcement of Rescue Deal
-------------------------------------------------------------
The Dutch trustees of Internet retailer Letsbuyit.com may
postpone an announcement of the proposed rescue deal of Letsbuyit
with either French Dealpartners.com or Norwegian CoShopper.

Court-appointed trustees Trenitee van Doorne promised to make a
statement following a proposal made to interested parties.
Tuesday's possible announcement dimmed when developments foreseen
by the morning changed quite a bit, a trustee told Reuters. He
earlier described the talks as positive but added that the
potential investor has until 1600 GMT Tuesday to confirm the
deal.


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

MEDIA-MOST: Prosecutors Suspect Illegal Ties with City Government
-----------------------------------------------------------------
Government prosecutors are investigating potentially illegal
business links between Vladimir Gusinsky's Media-MOST empire and
the Moscow city government, Agence France-Presse said. The team
is now questioning Moscow mayor Yury Luzhkov, asking details
about Vladimir Guzinsky's business dealings with the Moscow city
government. The mayor is cooperating with the investigation,
giving a written deposition in reply to the inquiry.

Last week, prosecutors charged Moscow city government finance
director Yury Korostelyov with negligence. AFP did not elaborate,
but said the charge is connected to a loan he underwrote to
Media-MOST.

Gusinsky is now under house arrest in Spain awaiting extradition
to Russia. He is charged with embezzling more than 300 million
dollars from the state-run gas giant Gazprom, which is Media-
MOST's largest shareholder and creditor.


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

GIGABELL IBERICA:  Jippii is New Owner
--------------------------------------
The Finnish Internet service provider and telecoms operator
Jippii Group has purchased Madrid-based Internet operator
Gigabell Iberica S.L. through its Spanish subsidiary, Reuters
said on Tuesday. In a statement to the media, Jippii said the
deal is a continuation of its acquisition of a major stake in
Gigabell's German parent company.  


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

EQUITABLE LIFE:  Clamor for Ombudsman Inquiry Grows
---------------------------------------------------
The clamor for an inquiry into the government's role in the
Equitable life crisis is growing, the Guardian reports. Calls for
an investigation by the parliamentary ombudsman grew after more
policyholders demanded a wider inquiry. It appears that as early
as November 1998, the state treasury may have already had
reservations about Equitable's solvency.

Liberal Democrat trade and industry spokesman Vincent Cable told
the Guardian that the parliamentary ombudsman should look into
the role of the various regulating agencies including the
treasury and the department of trade and industry.

The 239-year old insurer closed down on December 8 and imposed
new conditions on existing policyholders after losing a legal
battle over pension promises and then failing to find a buyer.


HUNTINGDON LIFE:  Denial of Bank Loan May Lead to Receivership
--------------------------------------------------------------
Britain's Huntingdon Life Sciences Group Plc is depending on a
bank loan for its survival. According to Reuters, the Royal Bank
of Scotland and two other unnamed U.S. banks are under extreme
pressure from activist groups not to grant the loan to
Huntingdon, whom they claim are testing drugs on animals.

Huntingdon's current bank facility of 22.5 million pounds runs
only until January 19. It has been extended twice in the past:
sometime in October and in December. Huntingdon is hoping for a
further stay so a refinancing plan could be drawn up.

The company, which employs 12,000 workers, could go into
receivership if negotiations fail.


INFORMATION BUSINESS: Liquidation Proceedings
----------------------------------------------
Company Name: Information Business Systems Ltd
Company No: 1730498
Com. Business: Software Consultancy/Supply
Appointed on: 08/12/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Graham P Petersen
IPno: 8325
Firm Name: Benedict Mackenzie
Address: 5-6 The Courtyard East Park
City Postcode: Crawley RH10 6AG


INTERNATIONAL HARDWARE: Liquidation Proceedings
------------------------------------------------
Company Name: International Hardware Systems Ltd
Previous Name: Feltrise Ltd
Company No: 3268220
Com. Business: Dist Specialist Cases
Appointed on: 08/12/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Andrew J Nichols
IPno: 8367
Firm Name: Redman Nichols
Address: Maclaren House Skerne Road
City Postcode: Driffield YO25 6PN


MILLENIUM DOME:  Sale Possible Within Weeks
-------------------------------------------
The government confirmed through BBC News the smooth progress of
talks with preferred bidder Legacy over the sale of the Millenium
Dome. The deal is expected to be completed next month and
contracts drafted by February. Legacy, owned by businessman
Robert Bourne, is offering 125 million pounds for the Greenwich
site, which it hopes to turn into a high-tech business park.


SOMERFIELD PLC:  Losses Mount in First Half
-------------------------------------------
U.K. supermarket chain Somerfield Plc posted losses for the first
half of its fiscal year ending November 11. It sustained a pre-
tax loss of pounds 21.7 million for this period, compared to a
profit of 45.6 million a year earlier. Reuters says the company
proposed non-payment of interim dividends.   

Wright Investors' Service says that as of April 2000 the
company's long term debt was 328.80 million pounds and total
liabilities (i.e., all monies owed) were 1.01 billion pounds.


SUCCUBUS LTD: Liquidation Proceedings
-------------------------------------
Company Name: Succubus Ltd
Company No: 3701914
Com. Business: Motion Picture/Video Production
Appointed on: 08/12/00
Type: Creditors
Appointed by: Creditors and Members
Liquidators: Peter J Windatt
IPno: 8611 Ian Q Taylor 5423
Firm Name: Smith Dove
Address: Glenroyd House 96-98 St James Road
City Postcode: Northampton NN5 5LG


UREGARE LTD: Liquidation Proceedings
-------------------------------------
Company Name: Uregare Ltd
Company No: IR
Appointed on: 08/12/00
Type: Members
Appointed by: Members
Liquidators: John Mair
Firm Name: Sinnot Hughes & Co
Address: 69 Fitzwilliam Square
City Postcode: Dublin 2


VELITAR LTD: Liquidation Proceedings
-------------------------------------
Company Name: Velitar Ltd
Company No: SC
Appointed on: 08/12/00
Type: Creditors
Appointed by: Creditors
Liquidators: Keith V Anderson
IPno: 6885
Firm Name: T Hunter Thomson & Co
Address: 28 Alva Street
City Postcode: Edinburgh EH2 4QF



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.

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