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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, March 01, 2001, Vol. 2, No. 42


                            Headlines


B E L G I U M

FLANDERS LANGUAGE:  Posts US$57.7 Million Loss in 2000
SABENA SA:  Airlines to Complain on Sabena Recapitalization


G E R M A N Y

DAIMLERCHRYSLER AG:  UK Mercedes Dealers Fight to Save Group
DEUTSCHE TELEKOM:  Shareholders Files Lawsuit Against Management
PIXELPARK AG:  Appoints Peter Ostermann as New Chief
USU AG:  Posts DM3.5 Million Nine-month Net Loss


H U N G A R Y

DIOSGYOR STEELWORKS (DAM):  Bidders Emerge for Steelworks
STYL RT:  Winds Up Duna Divat Subsidiary


I R E L A N D

3COM CORPORATION:  To Lay Off Jobs in Dublin
EIRCOM PLC:  ESOP Delays Decision on Eircell Sale


I T A L Y

ZIVAGO:  Shareholders Approve Zivago Liquidation


N E T H E R L A N D S

COMPLETEL EUROPE:  Loss Widens to 200.5 Million Euros in 2000


P O L A N D

FIAT AUTO:  Definite on Job Cuts


R U S S I A

NTV:  Ministry Backs NTV Business Solution


S P A I N

TEKNOLAND:  Seeks New Partner to Overcome Financial Problems


U N I T E D   K I N G D O M

ANTONOV PLC:  Posts 1.79 Million Pounds Loss
BUCKINGHAM & BAIN:  Liquidation Proceedings
DECKCHAIR.COM:  Travel Company Cuts Jobs
EQUITABLE LIFE:  Defends 10 Percent Penalty
GEARHOUSE GROUP:  In Receivership with Debts of 20 Million Pounds

IRON DESIGNS:  Liquidation Proceedings
ORCHESTREAM HOLDINGS:  Reports 10.5 Million Pounds Loss in 2000
PATTINSON EDWARDS:  Liquidation Proceedings
REDSTONE TELECOM:  Posts Loss of 20.2 Million Pounds
REGUS PLC:  Posts 3.9 Million Pounds Loss

RMC GROUP:  Plans More Asset Sales to Cut Debt
ROBERT H LOWE:  Posts Loss of 12.9 Million Pounds
VFG PLC:  Shares Fall 5.7 Percent After Posting Nine-month Loss


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

FLANDERS LANGUAGE:  Posts US$57.7 Million Loss in 2000
------------------------------------------------------
Venture capitalist Flanders Language Valley Fund reported a
US$57.78 million net loss in 2000 on Tuesday, from a US$13.6
million net profit in 1999, according to Dow Jones yesterday.

The results of the fund were based on a US$28.7 million loss on
its Korean operations and US$26.2 million in write-downs because
of troubled software firm Lernout & Hauspie Speech Products NV,
which is operating under bankruptcy protection in the U.S. and
Belgium.

FLV Fund, a financial investment company aimed at injecting
capital into companies involved in the development of high
technology linking information technology and speech recognition
systems, has acknowledged that it has invested heavily in
companies using L&H's technology.


SABENA SA:  Airlines to Complain on Sabena Recapitalization
-----------------------------------------------------------
Four privatized European Union airlines have considered filing a
complaint with the EU Commission over the Belgian government's
EUR100 million contribution to the recapitalization of Sabena SA,
Dow Jones reported on Tuesday.

KLM spokesman Bart Koster said representatives from Deutsche
Lufthansa AG, British Airways PLC, Scandinavian Airlines System
A/S and KLM Royal Dutch Airlines have spoken about the
possibility of filing a complaint.

The airlines will look into the government's argument that the
EUR100 million contribution should not be considered state aid
because a private investor is making a larger contribution,
Koster added.

The talks came after the Commission launched an inquiry into
whether Sabena's shareholders' EUR250 million cash injection -
made by the Belgian government and SairGroup -- into the ailing
airline constitutes state aid.


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

DAIMLERCHRYSLER AG:  UK Mercedes Dealers Fight to Save Group
------------------------------------------------------------
Leaders of Britian's 156 Mercedes dealers have launched a
campaign to their European counterparts against termination
notices received by Mercedes-Benz's parent, troubled automaker
DaimlerChrysler AG, the Financial Times reported on Tuesday. The
termination notices will take effect at the end of this year.

DaimlerChrysler also plans to take direct control of 70 percent
of its UK sales, leaving the rest to just 24 independent dealers,
the Times added.


DEUTSCHE TELEKOM:  Shareholders Files Lawsuit Against Management
----------------------------------------------------------------
Disappointed small shareholders of Deutsche Telekom AG filed a
lawsuit on Tuesday against management over the sharp decline in
the German phone company's shares, according to The Wall Street
Journal yesterday.

Attorneys Jens-Peter Gieschen and Hans-Joachim Wiebe filed the
suit, with prosecutors in six German cities, including Bonn,
where Telekom is registered.

The suit alleges that Deutsche Telekom is engaged in investment
fraud, has violated German stock corporation law by making false
statements in a prospectus published ahead of a share issue last
year and that management misrepresented the company's financial
situation.

A company spokesman said the allegations have no basis.


PIXELPARK AG:  Appoints Peter Ostermann as New Chief
----------------------------------------------------
Multi-media production company Pixelpark AG has appointed Peter
Ostermann as its chief operating officer, effective immediately,
according to Handelsblatt's February 26 edition.

The new chief will shortly implement a comprehensive package of
measures designed to bring a sustained improvement in efficiency
and profitability.

The TCR-EUR reported on February 7 that Pixelpark's loss in the
final quarter of 2000 widened to 5.4 million euros, while its
long-term debt as of June 1999 was 1.14 million euros and total
liabilities were 22.71 million euros.


USU AG:  Posts DM3.5 Million Nine-month Net Loss
------------------------------------------------
Software provider USU AG posted a nine-month net loss of DM3.5
million due to one-off personnel expenses of DM2.7 million for
employee shares ahead of its initial public offering,
Handelsblatt said in its February 26 edition.

As of March 2000, total liabilities were 6.84 million euros.


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

DIOSGYOR STEELWORKS (DAM):  Bidders Emerge for Steelworks
---------------------------------------------------------
Three industry investors, Max Aicher GmbH, Aceltech Rt and
Italy's Cogne Acciai Speciali Srl, are lining up to bid for
Diosgyor Steelworks (DAM), according to Budapest Business Journal
on Monday.

Aceltech CEO Tibor Szoke has declined to comment on the amount of
investment necessary to turn DAM around but press reports say
that the assets are valued at Ft 7.7 billion.

The results of the tender offer for bankrupt DAM will be
announced by March 6.


STYL RT:  Winds Up Duna Divat Subsidiary
----------------------------------------
In a report dated February 26, Hungary AM said that clothesmaker
Styl Rt would wind up its subsidiary Duna Divat Kft on May 31.

Operating 18 clothing stores, the company has consolidated losses
of Ft 184 million last year.


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

3COM CORPORATION:  To Lay Off Jobs in Dublin
--------------------------------------------
3Com Corporation will cut up 30 jobs at its Dublin headquarters,
with 1,200 worldwide, as part of a global cost cutting plan, The
Irish Times said on Tuesday.

According to Bruce Clafin, 3Com president and chief executive,
the company will seek annual cost savings of up to $200 million
(220 million euros).

Furthermore, the computer equipment maker will focus on cost
reductions in employment, discretionary costs, product costs and
savings in plant/property and equipment.

3Com's long-term debt as of May 2000 was $14.74 million and total
liabilities were $1.28 billion.


EIRCOM PLC:  ESOP Delays Decision on Eircell Sale
-------------------------------------------------
The Eircom Employee Share Ownership Plan (ESOP) Trustee has
postponed a decision on whether to support the sale of Eircell to
Vodafone as telecom firm Eircom Plc has yet to provide details on
the sale, The Irish Times said on Tuesday.

A company spokesman said yesterday that documentation was now due
to go to shareholders for approval by the end of next week.

Eircom sources have denied the company wants to delay the
meeting. The timetable has slipped because of delays in
concluding several commercial agreements between Eircom and
Vodafone.


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

ZIVAGO:  Shareholders Approve Zivago Liquidation
------------------------------------------------
Shareholders of online books and music site Zivago approved the
company's liquidation on Tuesday, Reuters said. L'Espresso
publishing group did not disclose the names of the two appointed
liquidators.

The company was set up in March 1999 by Milan bookstore and
multimedia group Librerie Feltrinelli and L'Espresso publishing
group's Kataweb Internet portal.


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

COMPLETEL EUROPE:  Loss Widens to 200.5 Million Euros in 2000
-------------------------------------------------------------
Telecom firm CompleTel Europe NV's net loss for the year 2000 has
widened to 200.5 million euros against a loss of 49.8 million in
1999, according to Reuters on Tuesday. The company's annual
turnover was 15.1 million euros.

CompleTel's long-term debt as of December 1999 was 79.32 million
euros and total liabilities were 132.71 million euros.


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

FIAT AUTO:  Definite on Job Cuts
--------------------------------
Car manufacturer Fiat Auto Poland (FAP) has decided to cut 580
employees at its Fiat plants and 170 in its subsidiary FA
Powertrain Polska, Poland A.M said in its February 26 report.

Negotiations on Monday failed after management rejected all the
union's proposals to salvage employee jobs. Trade union members
said that 500 of those affected by the job cuts could count on
receiving early retirement, while the remaining 250 would be laid
off without receiving any additional benefits.

Both parties are currently at odds about how much compensation
the workers made redundant should receive.

Fiat SPA, FAP's mother company, has a long-term debt of 10.75
billion euros and total liabilities of 65.11 billion euros as of
December 1999.


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

NTV:  Ministry Backs NTV Business Solution
------------------------------------------
The Russian mass media ministry will back any business solution
to the problems of NTV, Russia's private independent television
network, Itar-Tass said in its Tuesday edition, citing ministry
chief Mikhail Lesin.

According to Lesin, any investment in NTV is not feasible before
investors come to an agreement with Russian tycoon Vladimir
Gusinsky.

"The position of Gusinky is not really known to anybody and the
situation will not be resolved until an official document appears
which really reflects interests of investors," Lesin added.

As earlier reported, NTV is at the center of an ownership
struggle between Gusinsky and natural-gas monopoly Gazprom, which
owns 46 percent of NTV and holds 19 percent of the network as
collateral for a loan due this summer.


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

TEKNOLAND:  Seeks New Partner to Overcome Financial Problems
------------------------------------------------------------
Internet consultancy firm Teknoland, which has gone into
temporary receivership with debts of Pta2 billion, is
implementing cost cutting measures and is seeking a partner to
help it overcome its financial problems, La Vanguardia & World
Reporter said in its February 20 edition.

Meanwhile, Teknoland, which has filed a demand against Terra for
Pta8.5 billion for breach of contract, claims that Terra
undertook to acquire 100 percent of its capital.

Terra attributes Teknoland's problem to poor management.


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

ANTONOV PLC:  Posts 1.79 Million Pounds Loss
--------------------------------------------
Antonov Plc, which develops and commercializes unique automatic
transmission for use in virtually all forms of vehicles, has made
pre-tax losses for the year of 1.79 million pounds, according to
The Times yesterday.

The company has not paid dividends during the last 12 months or
the previous four fiscal years. It also reported losses during
the previous 12 months.


BUCKINGHAM & BAIN:  Liquidation Proceedings
-------------------------------------------
Company Name:   Buckingham & Bain Holdings Ltd
Company No:   786153
Com. Business:   Development/Sale Real Estate
Appointed on:   05/02/01
Type:   Members
Appointed by:   Members
Liquidators:   David Wald  IPno: 3598    
Firm Name:   D Wald & Co
Address:   18 Sapcote Trading Centre  Dudden Hill Lane
City Postcode:   London  NW10 2DH


DECKCHAIR.COM:  Travel Company Cuts Jobs
----------------------------------------
Former rock star Bob Geldof's high-profile travel company
Deckchair.com has axed 25 percent of its staff, the Financial
Times reported on Wednesday. The exact number of dismissed
employees was not disclosed.

The paper said the company was understood to be in talks with
Aim-listed Online Travel.

Geldof set up Deckchair.com after becoming irritated at how
difficult it was to book reasonably priced flights on the
Internet.


EQUITABLE LIFE:  Defends 10 Percent Penalty
-------------------------------------------
Equitable Life has rejected claims from the Office of Fair
Trading that it is unfair to charge policyholders a 10 percent
penalty for the early surrender of policies, according to This Is
London on Tuesday.

Equitable describes the penalty as an adjustment, which has been
in place since the life assurer closed to new business in
December.

The mutual insurer argued that if a large number of people
surrender their policies early when market conditions are
difficult, they would receive more than their entitlement if
there were no exit penalty.

The OFT gave the group until today to explain and threatened
legal action if there was no response.


GEARHOUSE GROUP:  In Receivership with Debts of 20 Million Pounds
-----------------------------------------------------------------
Gearhouse Group Plc, which provides lighting and video systems
for pop concerts and corporate events, has gone into receivership
with debts of around 20 million pounds, The Guardian on Tuesday
reported.

The company's shares were suspended on the stock exchange in
December after it said it was in talks with bankers.

Andrew Wollaston of receivers Ernst & Young hopes to sell the
company, which employs 700 people worldwide and had a 70 million
turnover.


IRON DESIGNS:  Liquidation Proceedings
--------------------------------------
Company Name:   Iron Designs (Sussex) Ltd
Company No:   1111997
Com. Business:   Iron & Steel Manufacturer
Appointed on:   05/02/01
Type:   Members
Appointed by:   Members
Liquidators:   William J Knight  IPno: 2236    
Firm Name:   Jeremy Knight & Co
Address:   68 Ship Street
City Postcode:   Brighton  BN1 1AE


ORCHESTREAM HOLDINGS:  Reports 10.5 Million Pounds Loss in 2000
---------------------------------------------------------------
Orchestream Holdings Plc, an Internet protocol network management
software developer, has reported a maiden loss of 10.5 million
pounds as of December 31, 2000, according to The Times yesterday.


PATTINSON EDWARDS:  Liquidation Proceedings
-------------------------------------------
Company Name:   Pattinson Edwards Ltd
Company No:   1088909
Com. Business:   Insurance Brokers
Appointed on:   05/02/01
Type:   Creditors
Appointed by:   Creditors
Liquidators:   David K Hunter  IPno:     
Firm Name:   Campbell Dallas
Address:   Sherwood House  7 Glasgow Road
City Postcode:   Paisley  PA1 3QS


REDSTONE TELECOM:  Posts Loss of 20.2 Million Pounds
----------------------------------------------------
Redstone Telecom Plc has reported a pre-tax loss for the nine
months to the end of December of 20.2 million pounds, The Times
said in yesterday's edition. The company does not intend to pay a
dividend.

The company's long-term debt as of March 2000 was 2.80 million
pounds and total liabilities were 45.65 million pounds.


REGUS PLC:  Posts 3.9 Million Pounds Loss
-----------------------------------------
Regus Plc, which specializes in renting office space and offers a
variety of related services such as videoconferencing,
telecommunications systems and concierge services in nearly 50
countries, said that its pre-tax loss for the year was 3.9
million pounds, according to The Times yesterday.

In 1999, the British company had total liabilities of $472.4
million and total assets of only $433.7 million.


RMC GROUP:  Plans More Asset Sales to Cut Debt
----------------------------------------------
Top ready-mix concrete maker RMC Group Plc plans more asset sales
to reduce its debt, according to Reuters' report on Monday,
citing company spokesman William Clutterbuck.

RMC, which had .9 billion pounds ($2.8 billion) of debt in
December, agreed to sell its Great Mills home-improvement chain
to Duke Street Capital for 285 million pounds to focus on
building materials and to cut its debt.

The Sunday Times also reported that RMC plans to sell 300 million
pounds of assets in 2001. It said that Rivals Cemex SA and
Holderbank Financiere Glarus AG would probably bid for the
company.


ROBERT H LOWE:  Posts Loss of 12.9 Million Pounds
-------------------------------------------------
Sportswear and leisurewear manufacturer Robert H Lowe Plc had a
full-year pre-tax loss of 12.9 million pounds, The Times said in
its yesterday's edition.

The group has a long-term debt of 3.84 million pounds and total
liabilities of 11.89 million pounds as of October 199.


VFG PLC:  Shares Fall 5.7 Percent After Posting Nine-month Loss
---------------------------------------------------------------
Shares of VFG Plc, the broadcast video and film facilities group,
fell 5.7 percent to 25 pence after it posted a nine-month pretax
loss of 1.6 million pounds in 1999, the Financial Times said in
its February 26 report.

According to chairman David Hudd, the company's loss was due to
extremely competitive market conditions.

Turnover for the period was up 42 percent to 20.3 million pounds.



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,
Salve M. Mordeno and Cristina Pernites, Editors.

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

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