/raid1/www/Hosts/bankrupt/TCREUR_Public/010307.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

             Wednesday, March 07, 2001, Vol. 2, No. 46


                            Headlines


B E L G I U M

LERNOUT & HAUSPIE: Credit Suisse to Advise on L&H Sale
LERNOUT & HAUSPIE: Sets Stockholders Meeting for April 27
SAIT-STENTO: Sells SAIT Communications for EUR 22.94 Million


B U L G A R I A

BALKAN AIRLINES: Loses Operating License


G E R M A N Y

DAIMLERCHRYSLER: Moody's Downgrades Chrysler to A3/P-2
DEUTSCHE TELEKOM: Chief Under Fire From Executives
MICROLOGICA AG: To Start Insolvency Proceedings
MIS AG: Loss Widens to DM14.5 Million in 2000
NSE SOFTWARE: Board Initiates Reorganization Plan

NSE SOFTWARE: Top Honchos Leave Software Developer
OPENSHOP HOLDING: Software Maker Posts Wider Loss
TEAMWORK INFORMATION: Creditors Okay Rescue Plan


H U N G A R Y

POSTABANK RT: Finance Minister Says OTP Bid is Low


I R E L A N D

3COM CORPORATION: Sees Losses of $245 million
EIRCOM PLC: Desmond Moves Closer to Eircom Bid


I T A L Y

ALITALIA-LINEE:  Posts Loss of Up To 700 Billion Lire


N O R W A Y

OCEAN RIG: S&P Revises Ratings to Negative


R U S S I A

MEDIA-MOST: Gusinsky Hearing Set on March 8


S P A I N

BOLIDEN APIRSA: Awaits Murchison Move on Apirsa


U N I T E D   K I N G D O M

ASHDOWN FOODS:  Liquidation Proceedings
ATLANTIC TELECOM: Readies for Takeover
BANK OF CREDIT: Employees to Claim $60 Million from Bank
BARRYSWORLD LTD:  Liquidation Proceedings
BRITISH AIRWAYS: KLM Makes Conditional Bid for Go

CORUS GROUP: PM Blair Urges Steelmaker to Reconsider Cuts
SAVE GROUP: Chief Accuses Bankers After its Collapse
W3MEDICA.COM:  Liquidation Proceedings


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


LERNOUT & HAUSPIE: Credit Suisse to Advise on L&H Sale
------------------------------------------------------
Lernout & Hauspie has hired Credit Suisse First Boston to advise
it on the sale of its Mendez translation unit and help the
company with all the negotiations resulting from its
restructuring, according to Bloomberg's March 2 report.

Lernout, which is under protection from creditors in the United
States and Belgium, has received offers for its translation unit
exceeding $185 million.

The voice-recognition software maker ran into trouble paying
creditors last year after discovering a shortfall of more than
$100 million at its Korean unit. It is restating two-and-a-half
years of earnings because of accounting errors and faces an
investigation by the U.S. Securities and Exchange Commission.


LERNOUT & HAUSPIE: Sets Stockholders Meeting for April 27
---------------------------------------------------------
Lernout & Hauspie Speech Products N.V. will hold a stockholders'
extraordinary general meeting on April 27 at Westhoek Expo in
Belgium.

A company release dated March 2 says the Board of Directors will
update stockholders on the company's status following its filing
for bankruptcy protection in the US and Belgium and subsequent
reorganization. Lernout plans to discuss the contents of the
company's internal audit committee investigation and the measures
already taken or which are being considered for reorganization
and recovery.

Independent auditors KPMG will also report on the company's
financial statements for the fiscal years 1998, 1999 and the
first half of 2000.


SAIT-STENTO: Sells SAIT Communications for EUR 22.94 Million
------------------------------------------------------------
Telenor will acquire SAIT Communications from SAIT-STENTO for EUR
22.94 million, according to a company release on Monday. The
agreed enterprise value of EUR 33 million resulted in a purchase
price of EUR 22.94 million due to a debt adjustment.

The SAIT Communication acquisition is a part of Telenor's
strategy to expand into the retail distribution market to capture
a larger market share and to introduce value-added services.

SAIT Communications was a part of the SAIT-STENTO Group and
provides airtime services based on a multisupplier concept for
satellite mobile communication users.

On December of 2000, SAIT-STENTO reduced up to 40 to 50 employees
to speed up reorganization in its Business Unit Wireless
Solutions unit.


===============
B U L G A R I A
===============

BALKAN AIRLINES: Loses Operating License
----------------------------------------
Authorities on Monday withdrew the operating license of Balkan
Airlines, which is already facing bankruptcy proceedings,
according to Agence France Presse.

The debt-ridden airline suspended all flights in mid-February
amid a legal conflict between owners Zeevi Holdings and the
Bulgarian government.

The airline's major creditors, insurance group Bulstrad and Sofia
Airport, have launched legal proceedings that could have the
airline declared bankrupt.

Under Bulgarian law, a flight operations license cannot be
renewed for at least six months after the transport ministry
announced its withdrawal.


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

DAIMLERCHRYSLER: Moody's Downgrades Chrysler to A3/P-2
------------------------------------------------------
Moody's Investors Service has downgraded the long-term and short-
term ratings of DaimlerChrysler AG (DCX), DaimlerChrysler North
America Holdings Corporation (DCNAH), and their supported
subsidiaries.

The senior unsecured long-term rating was lowered to A3 from A2,
while the short-term rating was lowered to Prime-2 from Prime-1.

The downgrade reflects Moody's expectation that the intermediate-
term debt protection measures of DCX, and the competitive
position of its Chrysler operations, will be considerably weaker
than historic levels despite the benefits likely to result from
the company's extensive restructuring program.

However, Chrysler's 2.2 to 2.6 billion euro operating loss in
2001, its 3.0 billion euro restructuring charge, and its large
borrowing requirements, will result in DCX's debt protection
measures remaining weak for the A3 rating level into 2002.

During 2001, DCX expects that Chrysler's operating loss will
approximate 2.2 to 2.6 billion euros. In addition, the
restructuring program will require a one-time charge of 3.0
billion euros in 2001, and the possibility of additional charges
of up to 1.0 billion euros for the period 2002 to 2003.


DEUTSCHE TELEKOM: Chief Under Fire From Executives
--------------------------------------------------
Deutsche Telekom AG's Chief Executive Ron Sommer was reported on
Sunday to be facing a revolt by some of his own executives who
plan to tell top government officials to find a successor,
Reuters said.

A report from news magazine Der Spiegel did not say how large the
group of dissident executives was, but said they had decided to
take action in protest at an internal memo recently sent by
Sommer to 300 executives.

In that memo, the Chief blamed half-truths spread by the media
for Telekom's poor share price performance, and announced a plan
to reinforce external communications.

Deutsche Telekom last month signed a letter of intent to sell a
55 percent stake in six regional cable-television companies to
US-based investment firm Liberty Media Group. The cash is needed
to cut a 60 billion euro debt that is weighing down the company's
stock price.


MICROLOGICA AG: To Start Insolvency Proceedings
-----------------------------------------------
Micrologica AG will start insolvency proceedings and sought court
protection after failing to find an investor to bail it out,
according to the Financial Times on Monday. The
telecommunications software maker does not have enough cash to
pay its liabilities that could probably not be covered by cash
reserves.

Micrologica is faced with imminent insolvency after an investor
canceled a two million euro ($1.84 million) credit line agreed to
last week.


MIS AG: Loss Widens to DM14.5 Million in 2000
---------------------------------------------
MIS AG's loss before interest and taxes widened to DM14.5 million
in 2000 from DM1.5 million in 1999 due to the depreciation of
goodwill for companies acquired in 2000, according to
Handelsblatt's March 5 report.

MIS, involved in the development, marketing and implementation of
management information system software, has total liabilities of
12.76 million euros as of December 1999.


NSE SOFTWARE: Board Initiates Reorganization Plan
-------------------------------------------------
NSE Software AG said on Monday it would reduce 30 percent of its
workforce and close its offices in Hamburg, Leipzig and Wurzburg.

The software producer gave no explanation for the move but said
in its press release it would undertake a thorough restructuring
program.

Due to additional operating expenses in connection with the
reorganisation concept, NSE Software will call an extraordinary
general meeting.


NSE SOFTWARE: Top Honchos Leave Software Developer
--------------------------------------------------
NSE Software AG said that CEO Dirk Oevermann, who joined in
October after the resignation of former head Friedrich Nerb, has
resigned from the company, while chief financial officer Peter
Paeselt would leave on April 30, according to a press release
dated March 5.

Vice President Manfred Schmaderer has been appointed a new member
of the Board of Directors and will be in charge of the company
with Petr Vaclavek.


OPENSHOP HOLDING: Software Maker Posts Wider Loss
-------------------------------------------------
Openshop Holding AG, which makes software to operate Internet-
based shops, recently posted a 90 percent wider loss to 9.9
million euros due to increased investments, according to Reuters'
March 2 report.

The software maker expects sales to decrease in the first quarter
due to difficult market conditions.

Software companies across Europe were hammered last week after
U.S. software house Oracle said its third-quarter results would
come in below expectations.

The company's long-term debt as of December 1999 was 3.58 million
euros and total liabilities were 6.65 million euros.


TEAMWORK INFORMATION: Creditors Okay Rescue Plan
------------------------------------------------
Teamwork Information Management AG said that its creditors have
unanimously approved its rescue plan to continue its entire range
of business operations.

In a company release dated March 2, Teamwork added that its
insolvency trustee would sell its stakes in EDM Software AG and
What's Up AG, cutting Teamwork's costs by 40 percent in January
from pre-insolvency levels.

Teamwork began insolvency proceedings in November last year after
it suffered cash-flow difficulties and poor third-quarter
results.


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

POSTABANK RT: Finance Minister Says OTP Bid is Low
--------------------------------------------------
Finance Minister Mihaly Varga qualified OTP Bank's offer for
state-owned Postabank as surprisingly low, according to Reuters'
March 3 report.

Neither OTP nor the state has officially announced OTP's offer
for Postabank but press reports mentioned 25 billion forints
($87.29 million).


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

3COM CORPORATION: Sees Losses of $245 million
---------------------------------------------
Networking equipment maker 3Com Corporation estimates that it
will be forced to report up to $245 million in operating losses,
after its share price fell 21.92 percent to $7.125 last week on
the New York Stock Exchange, according to BBC News Online.

The firm blames the slowdown in the telecommunications market for
rising losses.

The plummeting share price came even though the company announced
a cost-cutting restructuring program last week, the first of
which was an across-the-board reduction of approximately 1,200
people.


EIRCOM PLC: Desmond Moves Closer to Eircom Bid
----------------------------------------------
Financier Dermot Desmond has signed a confidentiality agreement
with eircom Plc, bringing him closer to bidding for the company's
fixed-line operations, according to The Sunday Business Post.

Desmond recently believed eircom's fixed-line assets were worth
more than the 2.4 billion euro ($2.23 billion) bid by rival
entrepreneur Denis O'Brien.

The Irish Independent newspaper on Saturday said that O'Brien has
secured the necessary financial backing to bid for the former
state company's fixed-line business and is expected to make his
move within the next two to three weeks.

Eircom signed an all-paper deal late last year to sell its mobile
operation, Eircell, to Britain's Vodafone. Recent falls in
Vodafone shares have cast doubt on the sale.


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

ALITALIA-LINEE:  Posts Loss of Up To 700 Billion Lire
-----------------------------------------------------
Flag carrier Alitalia is expected to post an operating loss of
600 to 700 billion lire ($289.9 to $338.2 million) in 2000.

According to Reuters' March 2 report, Alitalia is still
negotiating a commercial accord with Air France and an industrial
accord with Dutch carrier KLM.

There is also the need of finding some 2.0 trillion lire of fresh
capital to carry out the 2000-2003 industrial plan, the news
agency added.


===========
N O R W A Y
===========

OCEAN RIG: S&P Revises Ratings to Negative
------------------------------------------
Standard & Poor's in its release dated March 1, revised its
CreditWatch implications to negative from developing on the
triple-C ratings of Ocean Rig Norway A.S.'s $125 million
floating-rate senior-secured loans and $225 million fixed-rate
senior-secured notes.

This action reflects the company's recent announcement that
Friede Goldman does not intend to complete the rigs without a new
agreement between the parties. Now, the company faces significant
challenges and uncertainty as to an ultimate source of repayment
on the bonds.

Ocean Rig, formed in 1996 to construct, own, and operate a fleet
of semisubmersible drilling rigs for offshore oil and gas
exploration and development in deep water and harsh environments,
still has no drilling contracts in place to provide ongoing
operating cash flow.

The Norwegian company is currently suffering from poor liquidity
and financial flexibility.


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

MEDIA-MOST: Gusinsky Hearing Set on March 8
-------------------------------------------
Hearings on the extradition of Media-MOST President Vladimir
Gusinsky, who is under house arrest at his villa in Andalusia,
are scheduled for March 8, Itar-Tass said in its March 2 report.

Gusinsky is facing fraud charges in connection with a 5 billion-
ruble loan of Gazprom on a pledge of unsecured assets. Such
misdeeds are punishable with eight years in jail, which complies
with the minimum norms of the European convention on extradition.


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

BOLIDEN APIRSA: Awaits Murchison Move on Apirsa
-----------------------------------------------
Boliden Apirsa SL is waiting for the next move by Australia's
Murchison United Ltd regarding its interest in buying the Los
Frailes zinc mine in Spain, according to Reuters' March 2 report.

Murchison's exclusive right to acquire the mine in southern
Spain, which produces 100,000 tons of zinc a year as well as some
copper, lead and silver, ended on January 31.

Boliden Apirsa filed for bankruptcy protection in October, and
Murchison entered into an exclusive arrangement to undertake due
diligence in December.


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

ASHDOWN FOODS:  Liquidation Proceedings
---------------------------------------
Company Name:   Ashdown Foods Ltd
Previous Name:   Notionhour Ltd
Company No:   2530342
Com. Business:   Trading Bulk Dairy Products
Appointed on:   15/02/01
Type:   Creditors
Appointed by:   Creditors and Members
Liquidators:   Malcolm P Fillmore  IPno: 6525    
Firm Name:   Benedict Mackenzie
Address:   5-6 The Courtyard  East Park
City Postcode:   Crawley  RH10 6AG


ATLANTIC TELECOM: Readies for Takeover
--------------------------------------
Scottish telecom operator Atlantic Telecom Group Plc is a prime
takeover target, after its pre-tax loss soared from 21.7 million
pounds to 90.2 million pounds since last year, the Evening News
said in its March 2 edition.

The company's turnover rose from 15.7 million pounds to 54.1
million pounds.

According to Mulumba Kiwanuka-Natigo of stockbroker Beeson
Gregory, the firm is even more vulnerable to a takeover bid with
its present valuation of 114.2 million pounds, compared with 2.7
billion pounds last year.


BANK OF CREDIT: Employees to Claim $60 Million from Bank
--------------------------------------------------------
Employees of the failed Bank of Credit and Commerce International
(BCCI) will be able to claim up to $60 million (41 million
pounds) compensation from the liquidators, The Daily Telegraph
said in its March 2 edition.

This was after the House of Lords said agreements signed by
workers not to bring claims did not rule out such payments.

Earlier this year, creditors of BCCI pursued their claim for 550
million pounds plus interest as damages suffered when the bank
collapsed ten years ago.


BARRYSWORLD LTD:  Liquidation Proceedings
-----------------------------------------
Company Name:   Barrysworld Ltd
IA 1986 Section:   98  Creditors
Meeting Time:   11.00 am
Meeting date:   05/02/01
Meeting address:   Acre House  11-15 William Road
Meeting City Code:   London   NW1 3ER
Authorised by:   A Brownlow   Director  17/01/01
Last day for proxy:   02/02/01
Proxy address:   Acre House  11-15 William Road  London  NW1 3ER
Liquidators:   Stephen M Katz
Firm Name:   Fisher Partners
Address:   Acre House  11-15 William Road  London  NW1 3ER


BRITISH AIRWAYS: KLM Makes Conditional Bid for Go
-------------------------------------------------
Dutch national airline KLM has made a conditional bid to buy
British Airways' subsidiary Go for around 100 million pounds
($147.1 million) in a joint approach with a private equity group,
the Financial Times reported on Monday.

British Airways decided to sell the division last November as
part of rationalization of its European operations.


CORUS GROUP: PM Blair Urges Steelmaker to Reconsider Cuts
---------------------------------------------------------
During a recent visit to the Wales Labor conference, Prime
Minister Tony Blair endorsed union plans to fight steel industry
job losses and once more urged Corus Group Plc to reconsider
6,000 jobs cuts.

It was announced in January that more than half of those jobs
would go in Wales, with the closures and cuts in the Llanwern,
Ebbw Vale, Shotton and Gorseinon plants.

The unions have submitted proposals to the steelmaker, which
includes plans for retraining workers.

"It is a plan not based on sentiment but hard-headed commercial
interest. We are ready to help in any way we responsibly and
legally can but I do urge Corus to listen to that plan with care
and think again," Blair said.


SAVE GROUP: Chief Accuses Bankers After its Collapse
----------------------------------------------------
James Frost has quit Save Group but accused its bankers,
Barclays, Royal Bank of Scotland and Lloyds TSB, of pushing the
company under, according to This Is London's March 2 report.

The controversial chairman and chief executive claimed that the
bankers gave Save a series of short-term facilities that were
never quite enough, charging the company more for what they
borrowed.

Save has a debt of 48.5 million pounds at the year-end. Its
administrators, Ernst & Young, plan to run the petrol station
chain until a buyer is found.


W3MEDICA.COM:  Liquidation Proceedings
--------------------------------------
Company Name:   W3Medica.Com Ltd
Company No:   3814955
Com. Business:   Web Based Medical Consultants
Appointed on:   15/02/01
Type:   Members
Appointed by:   Members
Liquidators:   Paul M Davies  IPno: 7805  Nicholas R Hood  8350
Firm Name:   Begbies Traynor
Address:   1 & 2 Raymond Buildings  Grays Inn
City Postcode:   London  WC1R 5BP



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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing  and photocopying) is strictly prohibited without
prior written permission of the publishers.  

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is $575 per half-year, delivered
via e-mail.  Additional e-mail subscriptions for members of the
same firm for the term of the initial subscription or balance
thereof are $25 each.  For subscription information, contact
Christopher Beard at 301/951-6400.


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