/raid1/www/Hosts/bankrupt/TCREUR_Public/010328.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 28, 2001, Vol. 2, No. 61


                            Headlines

* B E L G I U M *

LERNOUT & HAUSPIE: VP Says We're Alive and Kicking

* C Z E C H   R E P U B L I C *

WOOD & COMPANY: Broker Plans to Cut Cost by 10%

* G E R M A N Y *

ADAM OPEL: Board Meeting May Yield New Chairman
BANKGESELLSCHAFT BERLIN: Moody's Downgrades Ratings to Negative
BANKGESELLSCHAFT BERLIN: Denies Chief Will Go Over Crisis
BIOTISSUE TECHNOLOGIES: Posts Widened Net Loss
INTERSHOP COMMUNICATIONS: Posts First Quarter Revenues

* I T A L Y *

FREEDOMLAND-ITN: Shares Down After Chairman Says Bids Low

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

KPN NV: Board Member Drechsel Quits
KPN NV: Cuts Debt Load Through Asset Sale
KPN NV: Denies Exclusive Talks With Telefonica

* P O L A N D *

BANK STAROPOLSKI: Invest-Bank to Buy Ailing Bank
HUTA KATOWICE: Ministry Shortlists Two Bidders

* P O R T U G A L *

JERONIMO MARTINS: To Sell Faltering Polish Businesses

* R U S S I A *

MEDIA-MOST: Spanish Court Frees Gusinsky on Bail

* S W I T Z E R L A N D *

SAIRGROUP:  Initiates Big Sell-Off

* U N I T E D   K I N G D O M *

BREATHE.COM: Dismisses Closure Reports
CHELSEA VILLAGE: Issues Loss Warning
RAILTRACK GROUP: Parker Pulls Out of Job Offer

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


LERNOUT & HAUSPIE: VP Says We're Alive and Kicking
--------------------------------------------------

Lernout & Hauspie Speech Products NV, which is under bankruptcy
protection and facing an investigation by the U.S. Securities and
Exchange Commission, came to the Cebit technology fair not only
to display new products but also for another reason, Bloomberg
reported on Saturday.

"We're attending to show we are alive, we are kicking," L&H's
vice president for Europe, Middle East and Africa Peter Hauser
said. "We have new products and lots of partners, even if it's
not an easy period of time."

The company ran into trouble paying creditors after it discovered
a shortfall of more than $100 million in its Korean unit. Its
shares, delisted by the Nasdaq in December, have fallen 97% in
the past year, and closed Friday at $1.79.


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


WOOD & COMPANY: Broker Plans to Cut Cost by 10%
-----------------------------------------------

The largest Czech equity broker Wood & Company plans to downsize
its operating costs by 10% in reaction to falling trading volumes
on the Prague bourse this year, Reuters on Monday reported.

Head of sales Andrea Ferancova told Reuters that the brokerage is
closing down its Ukraine and Turkey offices, but would further
develop activities in the Czech Republic, Poland and Hungary and
keep its London sales representative.

Ferancova declined local media reports that the firm had suffered
losses from trading in Turkey in the recent financial crisis.


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


ADAM OPEL: Board Meeting May Yield New Chairman
-----------------------------------------------

With the supervisory board of Germany's Adam Opel AG expected to
rule on a successor to resigning Chairman Bob Hendry Tuesday,
industry observers still consider former Bayerische Motoren Werke
AG executive Carl-Peter Forster is front-runner for the job, Dow
Jones in its March 26 edition reported.

Opel and GM executives have refused to confirm or deny it, but
insisted that there are several candidates. They've also said
Hendry's successor will be European-born.

In January, Hendry said he'd tender his resignation this month
after failing to turn around GM Europe's biggest division. Opel
also announced its operating loss for 2000 widened to DM982
million from DM275 million in 1999.


BANKGESELLSCHAFT BERLIN: Moody's Downgrades Ratings to Negative
---------------------------------------------------------------

Moody's Investors Service has on March 26 changed from stable to
negative its outlook on the long-term debt and deposit ratings of
Bankgesellschaft Berlin AG and its subsidiary Landesbank Berlin.

The outlook change was prompted by increasing concerns about BGB
group's deteriorating financials, as more asset quality stress
has been emerging following investigations by outside auditors.
Under these circumstances, there may be increasing need for the
owners of the group to provide fresh capital.

On a more general note, Moody's said that it does not view BGB's
stresses as a symptom of a larger problem affecting German banks
on a systemic basis. Instead, they are particular to BGB because
of the type of lending (predominantly property), the softer
conditions under which some of these credits were extended, and
the more difficult economic environment of Berlin and the
surrounding new Laender it operates in.


BANKGESELLSCHAFT BERLIN: Denies Chief Will Go Over Crisis
---------------------------------------------------------

The majority shareholder of Bankgesellschaft Berlin, dominated by
the city of Berlin, denied reports that the bank's Chief
Executive Wolfgang Rupf would be forced to quit over the crisis,
Reuters in its March 26 edition said.

The bank has been plagued with political appointments and bad
management since its creation in 1994. Five senior executives
resigned earlier this month while Germany's banking regulator
BAKred has voiced concern over the general quality of the bank's
managers, some of whom are political appointees.

Berlin local government's junior Social Democratic coalition
partner said Bankgesellschaft needed to raise fresh capital to
cover a shortfall due to the real estate losses.

Last week, Rupf told Berlin's daily Tagesspiegel he was not
thinking of resigning since he has not yet completed his job.


BIOTISSUE TECHNOLOGIES: Posts Widened Net Loss
----------------------------------------------

Biotech company Biotissue Technologies AG's 2000 net loss widened
to 3.4 million euros ($3.04 million) from 1.23 million euros a
year earlier, Reuters reported on Monday.

The company said it expects to further widen its loss this year
to 3.7 million euros.


INTERSHOP COMMUNICATIONS: Posts First Quarter Revenues
------------------------------------------------------

Intershop Communications AG, a leading provider of e-business
software applications, said on Monday that revenues for the first
quarter of 2001, ending March 31, 2001 are expected to be in the
range of 18 to 20 million Euro, the Frankfurt Stock Exchange
reported.

Intershop has previously expected revenue for the first quarter of
2001 to be flat compared to the fourth quarter of 2000 of 30.2
million Euro.

The ordinary operating result is expected to be stable against the
fourth quarter 2000 loss of 33.4 million Euro due to the cost
saving measures.

Looking ahead, Intershop expects to complete its restructuring
program successfully in the second quarter resulting in increased
revenues and reduced operating costs.


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


FREEDOMLAND-ITN: Shares Down After Chairman Says Bids Low
---------------------------------------------------------

Shares in Internet television provider Freedomland fell more than
2.5% on Monday after Chairman Luigi Guatri reported that offers
for a majority stake in the company ranging from 12 euros to 21
euros per share were well below current prices, according to
Reuters' report.

"The offers are obviously low and clearly inferior to the current
stock market prices," Guatri said.

Last week, the company disclosed the names of four candidates to
acquire the majority stake, which is up for sale after founder
and former chairman Virgilio Degiovanni agreed to dispose his
shares in the face of a false accounting investigation that
triggered a shares collapse last year.


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


KPN NV: Board Member Drechsel Quits
-----------------------------------

Dutch KPN Telecom NV said on Monday that Joop Drechsel would
leave the company's executive board on May 1 to pursue other
interests, Reuters reported, citing chief executive Paul Smits.

Drechsel focused on KPN Telecom's international strategy and
struck several agreements with non-Dutch partners such as Japan's
NTT DoCoMo and Hong Kong's Hutchison Whampoa.

The Dutch group said last year that it would cut 8,000 jobs in
2001 and 2002 as part of a previously announced reorganization.


KPN NV: Cuts Debt Load Through Asset Sale
-----------------------------------------

KPN NV said it expects to raise 5 billion euros ($4.45 billion)
from the sale of its non-core assets, which might include the
flotation of its mobile phone unit KPN Mobile, in an effort to
reduce its 21.9 billion euro debt, BBC News in its Monday edition
reported.

The non-core assets up for sale include a holding in Ireland's
Eircom and Eircell, Czech Republic's largest telecom group Cesky
Telecom, Hungary's largest alternative telecom provider PanTel
and mobile operator Pannon GSM, Euroweb Int, Infonet Services
Corp, Ukraine's biggest mobile operator Ukraine Mobile
Communications, Indonesia's PT Telkomsel and Vision Networks,
Reuters said.

Chief executive Paul Smits said that that the reduction of KPN's
debt is a priority and that it is embarking on a restructuring
project to return to profitability in 2003.


KPN NV: Denies Exclusive Talks With Telefonica
----------------------------------------------

Dutch KPN Telecom NV was in talks with several companies for a
link-up in the German mobile phone market, but denied it was
holding exclusive talks with Spain's Telefonica, Reuters in its
Sunday edition said, citing KPN spokesman Marinus Potman.

Netherlands' leading telecom company won a UMTS license in
Germany last year for 8.4 billion euros, but its then-partner
Hutchinson Whampoa pulled out of the deal shortly after, leaving
KPN and its partner BellSouth to foot the bill.


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


BANK STAROPOLSKI: Invest-Bank to Buy Ailing Bank
------------------------------------------------

Invest-Bank is interested in buying Bank Staropolski, which is in
receivership, at 139 million zloty ($33.9 million), Warsaw
Business Journal in its March 26 edition said.


HUTA KATOWICE: Ministry Shortlists Two Bidders
----------------------------------------------

The Treasury Ministry will select this week two investors for the
privatization of steel mills Huta Katowice (HK), Sendzimira,
Cedlera and Florian, Warsaw Business Journal in its March 26
report said, citing Leszek Filipowicz of consulting company BMF,
which is advising the ministry on the sector's privatization.

Filipowicz declined to say which companies the treasury is
considering, but based on unofficial information, companies that
submitted offers included Germany's ThyssenKrupp, France's
Usinor, Finland's Rautarruki, US Steel of the United States,
India's Ispat and Arbed of Luxembourg.


===============
P O R T U G A L
===============


JERONIMO MARTINS: To Sell Faltering Polish Businesses
-------------------------------------------------------

Retailer Jeronimo Martins, which is preparing for a capital
increase, plans to sell part of its loss-making operations in
Poland, Namnews on Monday reported. The businesses include
hypermarket chain Jumbo and its Eurocash cash & carry business.

Jeronimo Martins added that it was studying a series of measures
but no final decisions could be announced until bourse
authorities have approved the steps.


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


MEDIA-MOST: Spanish Court Frees Gusinsky on Bail
------------------------------------------------

Spain's National Court freed media magnate Vladimir Gusinsky on
one billion peseta bail (6 million euro) on Monday, indicating
the court would reject a Russian request to extradite him on
fraud charges, Itar-Taas reported.

With the ruling, Gusinsky will have to report to police daily in
the southern province of Cadiz, where he lives, until the
extradition decision is finalized.

The 48-year-old Gusinsky is wanted in Russia in connection with
an alleged multimillion-dollar fraud case involving his Media-
Most empire. He claims he is a victim of political prosecution
because of Media-Most's criticism of Russian President Vladimir
Putin.

Russian prosecutors say Gusinsky overstated the assets of Media-
Most to win $300 million in loan guarantees in 1996 from the
state-owned natural-gas monopoly OAO Gazprom.


=====================
S W I T Z E R L A N D
=====================


SAIRGROUP:  Initiates Big Sell-Off
----------------------------------

SAirGroup has begun talks with venture capitalists over the sale
of Swissport International as part of an expected 2 billion-pound
disposal of the company's non-core assets, This Is London
reported on Monday.

New SAirGroup chief executive Mario Corti is also said to be
receptive to approaches for its Crossair commuter jets business
and the giant Gate Gourmet airline catering operation, which is
said to fetch 1 billion pounds.

Possible candidate to take over Crossair is British Airways,
while Hilton Group is thought to consider a bid for the company's
four-star hotel chain Swiss"tel Hotels & Resorts, estimated to be
worth 160 million pounds and being sold by SAirGroup's advisers
Credit Suisse First Boston.


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


BREATHE.COM: Dismisses Closure Reports
--------------------------------------

Internet service provider Breathe, which was said to be on the
verge of closure, has dismissed suggestions as nothing but rumors
and speculation, Vnunet.com reported on Monday.

Such news has dogged the company since Argos owner, Great
Universal Stores, bailed it from administration in December.

A report in the Sunday Telegraph said that Great Universal Stores
was expected to announce the closure of breathe.com this week. It
was also suggested that GUS snapped up UK's sixth largest ISP at
the bargain price of 1.4 million pounds just to get its hands on
the company's mobile and internet access technology.

Breath spokeswoman Anna Fairbairn said that GUS would not comment
on rumor and speculation, and nothing more could be said until
GUS releases a report in the near future.


CHELSEA VILLAGE: Issues Loss Warning
------------------------------------

Chelsea Village, owner of Chelsea Football Club, warned investors
that losses for the year would be worse than expected due to
extra costs for redeveloping the Stamford Bridge ground and plans
for a health club and visitor center, according to The Times
yesterday.

The company already made a loss of 2.3 million pounds for the six
months to December 31, compared with a 3.9 million-pound loss in
the same period last year, while losses for the whole of last
year came to 3.5 million pounds.

Analysts expect losses for the year to June 2001 to be as deep as
5 million pounds.


RAILTRACK GROUP: Parker Pulls Out of Job Offer
----------------------------------------------

Businessman Sir John Parker, tipped to take over as Railtrack's
new chairman, has withdrawn at the last minute, Press Association
in its March 27 report said.

Railtrack said that Sir John has withdrawn for personal reasons.



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. Kimberly MacAdam,
Salve M. Mordeno and Cristina Pernites, Editors.

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

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