/raid1/www/Hosts/bankrupt/TCREUR_Public/010330.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

             Friday, March 30, 2001, Vol. 2, No. 63


                            Headlines

* B E L G I U M *

LERNOUT & HAUSPIE: Bakers Challenges Sale in U.S. Court
REAL SOFTWARE: Euronext Suspends Trade in Real Software
REAL SOFTWARE: JP Morgan Raises Stake to 5.5%
REAL SOFTWARE: May Opt Bankruptcy for US Unit
SABENA SA: To Report Net Loss of 13 Billion Belgian Francs
SPECTOR PHOTO: Shareholders to Vote on Capital Hike

* F R A N C E *

WESTERN TELECOM: To Continue Operations Under Continuation Plan

* G E R M A N Y *

ADAM OPEL: Appoints Ex-BMW Exec As New Chief
EM.TV: Requests Extension of FY Results Release
INTERSHOP COMMUNICATIONS: Faces Class Action Suit in U.S.
INTERSHOP COMMUNICATIONS: Investors Sue Intershop for Fraud
INTERSHOP COMMUNICATIONS: Issues Negative Forecast
MG TECHNOLOGIES: Shareholder Intensifies Efforts to Oust CEO
PIXELPARK AG: Corrects Preliminary Revenue

* I R E L A N D *

FORMUS BROADBAND: Owes 21 Million Euro After Collapse

* I T A L Y *

TISCALI SPA: Year Loss Widens to 101 Million Euro

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

AND INTERNATIONAL: Subsidiaries Declared Insolvent
KPN NV: Declines to Comment on Pannon Stake Sale
LETSBUYIT.COM: Issues 9 Million Shares to the Neuer Markt

* S W E D E N *

LM ERICSSON: CEO Resignation Is Untrue
LM ERICSSON: Discharges Bosses From Fiscal Year Liability
LM ERICSSON: May Report Profit in First Quarter

* U N I T E D   K I N G D O M *

CAMMELL LAIRD: Guarantees Work for Staff
ABACUS SEAFOODS: Calls for Creditors' Meeting
CORUS GROUP: Blair Welcomes Corus Decision to Work with Unions
DONSIDE PAPER: PWC Nears Donside Rescue
HUNTINGDON LIFE: Brokers Dump Lab Firm
HUNTINGDON LIFE: Charles Schwab to Review Trading Policy
HUNTINGDON LIFE: Winterfloods Withdraws As Market Maker
MARKS & SPENCER: Slides As Credit Lyonnais Turns Outright Seller


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


LERNOUT & HAUSPIE: Bakers Challenges Sale in U.S. Court
-------------------------------------------------------

James and Janet Baker, the former majority owners of a company
acquired by Lernout & Hauspie Speech Products NV, want U.S.
bankruptcy judge Judith H. Wizmur to reject the proposed $13.1
million sale of voice-recognition technology from their former
business to high-tech auto-parts supplier Visteon Corp.

The Bakers rejected L&H's argument that no one else would be
willing to pay $13.1 million for the technology. They said they
would be willing to buy the technology themselves for that price
or more.

Judge Wizmur expects to consider the proposed sale to Visteon,
when she also plans to rule on a separate request by the Bakers
that she appoint a trustee to oversee the assets of their former
business, Dragon Systems Inc.

Last week, an L&H official testified that the sale of the voice-
recognition technology to Visteon should be completed by April 7
so L&H can use the proceeds. After that date, the company must
use the proceeds to repay its DIP lender, Cerberus Capital
Management LP.


REAL SOFTWARE: Euronext Suspends Trade in Real Software
-------------------------------------------------------

Euronext, the merger of the stock exchanges of Amsterdam
(Amsterdam Exchanges), Brussels (Brussels Exchanges) and Paris
(Paris Bourse), suspended trade in IT services group Real
Software pending a company statement, Reuters in its March 27
edition said.

Real Software was 2.75% lower at 5.30 euros before the suspension
of trade.


REAL SOFTWARE: JP Morgan Raises Stake to 5.5%
---------------------------------------------

U.S. investment bank J.P. Morgan Asset management London now
holds a 5.5% stake in software company Real Software, Dow Jones
reported on Wednesday.

Euronext Brussels confirmed the stake, which amounts to 837,553
shares. A spokesperson for J.P. Morgan declined to comment.

According to Real Software Chief Executive Theo Dilissen, chances
of reaching an agreement with engineering group ABB to buy part
of its U.S.-based Real Enterprise Solutions operations are slim
after ABB was seeking to renegotiate the deal.

Without an agreement, Real Software would immediately write off
the $35 million carrying value of its stake in the U.S. venture.
This would stop the cash drain on its healthy operations by
BEF1.5 billion, resulting in net liabilities of BEF1.3 billion,
Dilissen added.


REAL SOFTWARE: May Opt Bankruptcy for US Unit
---------------------------------------------

If talks with Swiss engineering giant ABB break down, Real
Software may consider for its U.S. unit to file for U.S.
bankruptcy or Chapter 11 creditor protection, Reuters on March 27
reported.

Earlier this month, Real Software agreed to sell a majority stake
in its U.S. unit, formerly known as Tava, to ABB in a mainly cash
deal.

However, ABB is demanding a fundamental renegotiation, raising
the bad net asset situation and the negative results of Real
Enterprise Solutions. The company also said that all claims
relating to Real Enterprise Solutions in the accounts would be
completely written off.

Real Software said that the write-off would have no impact on the
company's consolidated account.


SABENA SA: To Report Net Loss of 13 Billion Belgian Francs
----------------------------------------------------------

Belgian national airline Sabena is likely to report a loss of
about 13 billion Belgian francs ($288.6 million) for 2000,
according to a Reuter's March 27 edition. Its 2000 report is due
on April 3.

Sabena spokesman Wilfried Remans declined to comment on the
financial figures, until they are released.

In October, Sabena disclosed a recovery plan designed to cut
costs by 357 million euros in 2001.


SPECTOR PHOTO: Shareholders to Vote on Capital Hike
---------------------------------------------------

Spector Photo Group SA shareholders are to be asked to approve a
300 million Belgian francs capital hike on March 30, AFX reported
on Monday, citing chief operating officer Tony van Doorslaer.

The move is intended to improve the company's debt position.


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

WESTERN TELECOM: To Continue Operations Under Continuation Plan
---------------------------------------------------------------

A Paris court has authorized telecom service provider Western
Telecom to continue operations within the framework of a
continuation plan for six months, Les Echos reported on Tuesday.

Western Telecom, which has been in default of payment since mid-
March, will have to dispose its loss-making units such as Telnet,
in order to achieve operating breakeven in June 2001.

The operator will also post an operating loss for a quarter,
primarily due to restructuring costs.


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


ADAM OPEL: Appoints Ex-BMW Exec As New Chief
--------------------------------------------

General Motors Corp.'s Adam Opel AG unit on Tuesday named former
BMW AG manufacturing chief Carl-Peter Forster as the company's
new chairman and managing director, to replace Robert Hendry,
according to Reuters' report.

Forster will try to return the struggling German automaker to
profitability. He was one of three top BMW executives who
resigned a year ago after opposing BMW's sale of its ailing Rover
unit.

Hendry will then report to GM Chief Executive Officer Rick
Wagoner as a special advisor on several strategic issues,
including growth initiatives in the Asia-Pacific region.


EM.TV: Requests Extension of FY Results Release
-----------------------------------------------

EM.TV & Merchandising AG has asked Deutsche Boerse AG to extend
the filing of its full year results up to one month after the
March 30 deadline, AFX in its March 28 edition said, citing
company spokeswoman Marion Moorman.

Otherwise, the bourse may impose a fine.


INTERSHOP COMMUNICATIONS: Faces Class Action Suit in U.S.
---------------------------------------------------------

The law firm of Schiffrin & Barroway, LLP has filed a class
action lawsuit in the United States District Court for the
Southern District of New York, on behalf of all purchasers of the
securities of Intershop Communications AG pursuant to and/or
traceable to the Company's September 29, 2000 initial public
offering of American Depositary Shares through January 1, 2001,
inclusive, PR Newswire reported on Tuesday.

The complaint charges Intershop Communications and certain of its
officers and directors with issuing a materially false and
misleading Registration Statement and Prospectus in connection
with its initial public offering on September 29, 2000, which
misleadingly described the Company's success and future
prospects.

On January 2, 2001, the Company belatedly disclosed that it was
experiencing problems with sales in the U.S. and that demand for
its product was weakening. This disclosure caused the Company's
American Depositary Shares to fall by over $10 per share.

Plaintiff seeks to recover damages on behalf of class members and
is represented by the law firm of Schiffrin & Barroway, LLP, who
has significant experience and expertise prosecuting class
actions on behalf of investors and shareholders.

To sign-up to participate in this action online, please visit
www.sbclasslaw.com.


INTERSHOP COMMUNICATIONS: Investors Sue Intershop for Fraud
-----------------------------------------------------------

The law firm of Shalov Stone & Bonner, on behalf of the Intershop
Communications' investors, has filed a class action complaint
involving the securities of the company in the period from May 2,
2000, to January 3, 2001, PrimeZone Media Network in its March 26
edition said.

More information about the lawsuit is available on the firm's
website at www.lawssb.com.


INTERSHOP COMMUNICATIONS: Issues Negative Forecast
--------------------------------------------------

E-commerce software company Intershop said its revenues for the
first quarter of 2001 are expected to be between EU18 to 20
million, one third less that its previous estimate at
approximately EU30.2 million, Net Imperative reported on Tuesday.

The company's operating results are still expected to show a loss
of about EU33.4 million, in line with its results from fourth
quarter of 2000.

In January, Intershop announced it would cut 30% of its US
workforce. Earlier this month, shareholders initiated legal
action against the company for allegedly making misleading
statements and not disclosing falling sales.


MG TECHNOLOGIES: Shareholder Intensifies Efforts to Oust CEO
------------------------------------------------------------

Otto Happel, who holds a 10.2% stake in MG Technologies AG, has
pushed efforts to remove Chief Executive Kajo Neukirchen from his
seat, Handelsblatt reported yesterday.

Happel accused the head of the chemicals and industrial-equipment
maker of mismanagement and accounting fraud, claiming that
Neukirchen used the company's switch to U.S. accounting standards
to fudge the balance sheet.

According to Neukirchen, who responded with a report from auditor
Karlheinz Kueting, the allegation that MG Technologies has used
its initial switch to U.S. accounting standards to improve its
situation regarding assets, profits and financial condition is
unfounded.

Furthermore, Neukirchen has proposed a rule that board changes
can only be made with a 75% majority. Shareholders Deutsche Bank
AG, Dresdner Bank AG and Kuwait Investment Office are also
expected to support Neukirchen.


PIXELPARK AG: Corrects Preliminary Revenue
------------------------------------------

The full-service Internet service provider Pixelpark AG on March
27 announced the final results for the short financial year from
1st July 2000 to 31st December 2000, the Frankfurt Stock Exchange
reported. In the final accounts, Pixelpark corrected the
preliminary revenue published on 2nd February 2001, revising it
down from 55.0 to 52.3 million euros.

The EBITDA loss rose to 10.0 million euros and the net loss for
the year rose to 15.6 million euros. The reason for the decrease
in revenue was the suspension of a project for a major customer,
which was terminated at the customers' request because of delays
in deliveries. In addition, provisions to cover the related
possible warranty risks have also burdened the pre-tax loss.

In all, the loss and the decrease in revenue in the short
financial year 2000 were caused by start-up losses for new sites,
especially for Spain and Eastern Europe, integration costs of the
recently acquired companies, the Centre for Logistics and
Corporate Planning in Berlin (ZLU) and K2, and changes in
customer demand.

Based on the cost related to the efficiency program and the
changes in customer demand, the results for the first quarter of
2001 are also expected to fall short of expectations.

At the same time as the announcement of the results, Pixelpark
presented its far-reaching efficiency program, which was
initiated at the beginning of March.

The program aims to achieve short and midterm profitability in
all regions, local offices and business units, to align staff
resources according to order situation and utilization and to
achieve a positive EBITDA by end 2001.


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


FORMUS BROADBAND: Owes 21 Million Euro After Collapse
-----------------------------------------------------

Formus Broadband owes more than 21 million euro to its creditors
after its ceased operations on March 14, The Irish Times in its
March 29 edition said.

The Dublin-based company owes more than 14.75 million euro to its
US-based parent Formus Communications, around 2.65 million euro
to Lucent Technologies and a further 1.7 million euro to IDA
Ireland.

Other big creditors include Siemens, which is owed around 270,900
euro, Deutsche Bank with 221,900 euro, Lease Plan FMS Ireland
with more than 200,000 euro and Dillon Eustace with more than
180,000 euro.

Formus Broadband also owes founders Charlie and Rory Ardagh more
than 20,000 euro each.

Tom Kavanagh of accounting firm Kavanagh Chartered Accountants
has been appointed liquidator.


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


TISCALI SPA: Year Loss Widens to 101 Million Euro
-------------------------------------------------

Tiscali said its 2000 loss after tax widened to 101 million euro
from 9.5 million euro in 1999, while it made an operating loss of
48.8 million euro due to high marketing costs, the Financial
Times reported on Wednesday.

Tiscali acquired Dutch portal World Online and French Internet
service provider LibertySurf last year.

Last month, Tiscali said fourth quarter EBITDA widened to 13
million euro from 2.8 million euro in the same period of 1999.


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


AND INTERNATIONAL: Subsidiaries Declared Insolvent
--------------------------------------------------

AND Data Solutions and AND Software, two subsidiaries of ailing
electronic publisher AND International Publishers N.V., were
declared insolvent on Monday, Het Financieele Dagblad & World
Reporter in its March 27 edition said, citing AND administrator
J. Princen.

AND ran into difficulties due to bad marketing of new products.

Dutch investment company Roosland Beheer wants to rescue the
company with a complicated refinancing plan on the condition that
current holders of convertible bonds exchange their bonds, worth
Fl 50 million for 510 million shares, with a nominal value of FL
2.25 million.

If the bond holders agree, AND will be free of debts, while its
creditors will be paid in full.


KPN NV: Declines to Comment on Pannon Stake Sale
------------------------------------------------

Royal KPN NV declined to comment on rumors that the company
is in talks with Vivendi Universal on the sale of KPN's
44.7% stake in Hungary's Pannon, AFX News reported on
Wednesday.

According to KPN spokesman Marinus Potman, Vivendi Universal
indicated that it is interested in the stake but does not know if
KPN is in talks with them.

Potman also declined to comment whether KPN is in talks with
Pannon's other shareholders, Tele Danmark AS, Telenor AS and
Sonera Corp.


LETSBUYIT.COM: Issues 9 Million Shares to the Neuer Markt
---------------------------------------------------------

A capital increase of 9,146,937 bearer shares of LetsBuyIt.com
was admitted by Deutsche B"rse AG on March 27,2001 without an
offering prospectus, a Frankfurt Stock Exchange press release
said.

These shares form the initial tranche of the recently announced
round of EUR 52.8 million financing to LetsBuyIt.com by a
consortium of investors, including funds managed by Henderson
Global Investors, NeSBIC and Shmulik Stein International
Investments.


===========
S W E D E N
===========


LM ERICSSON: CEO Resignation Is Untrue
--------------------------------------

Ericsson said on Tuesday that Kurt Hellstrom is not resigning,
Reuters reported. This counters market rumors that the chief
executive might step down.

Ericsson further said it would dismiss 3,300 people and close two
mobile phone plants in Britain to bring the company back to
profit. It would also freeze hiring and slash the number of
external consultants to bring the company 20 billion crowns
($1.96 billion) of savings annually from 2002.

The cost-cutting package came after the company issued another
profit warning two weeks ago, the fourth in nine months, that it
would make a 4-5 billion crowns loss in the first quarter instead
of breaking even. This enraged some shareholders and trade
unions, and prompted calls for the dismissal of Hellstrom as well
as board Chairman Lars Ramqvist.


LM ERICSSON: Discharges Bosses From Fiscal Year Liability
---------------------------------------------------------

The income statements and balance sheets of LM Ericsson were
adopted and the Board of Directors and the President were
discharged from liability for the fiscal year 2000, Business Wire
reported on Wednesday.

The meeting approved a dividend of SEK 0.50 per share.
Shareholders who are recorded in the share register on the record
date, April 2, 2001, are entitled to receive dividend on April 5.


LM ERICSSON: May Report Profit in First Quarter
-----------------------------------------------

Telefon AB Ericsson Chief Executive Kurt Hellstroem said on
Wednesday the company would probably report on April 20 a first
quarter profit, Dow Jones reported.

The Swedish telecommunication company said Tuesday that it would
realize a SEK5.5 billion ($550 million) gain from the sale of its
remaining Juniper Networks Inc. shares.

Ericsson further said that it would try to cut SEK20 billion
(about $2 billion) in annual operating costs by 2002.


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


ABACUS SEAFOODS: Calls for Creditors' Meeting
---------------------------------------------

The joint administrator of troubled Buchan fish processing
company Abacus Seafoods has announced a meeting of creditors on
April 5 in Aberdeen, the Aberdeen Press & Journal in its March 26
report said.

The meeting will consider its own proposals under the Insolvency
Act and consider establishing a creditors' committee.

In November, Abacus Seafoods was facing closure, with its staff
working out their redundancy notice.


CAMMELL LAIRD: Guarantees Work for Staff
----------------------------------------

Cammell Laird said it would guarantee work for 150 staff at its
Tyneside yard after winning a 5 million-pound contract to
refurbish a Royal Navy ship, according to The Times yesterday.

Since November, the shares of the troubled shipbuilder went down
by 90% when an Italian client pulled out of a refit.


CORUS GROUP: Blair Welcomes Corus Decision to Work with Unions
--------------------------------------------------------------

Prime Minister Tony Blair has welcomed Corus Group PLC's
decision to work with trade unions in retraining workers
who will be made redundant by the company, AFX reported on
Wednesday.

He told the House of Commons the government would examine
carefully the proposals put forward by both parties.

A DTI spokesman told AFX news the government would approach the
European Commission and other EU states for approval for a
retraining scheme.


DONSIDE PAPER: PWC Nears Donside Rescue
---------------------------------------

Rescue is on its way for collapsed Donside Paper and its 250
employees through a management buy-out from receivers
PricewaterhouseCoopers.  

According to The Scotsman newspaper in its report yesterday, the
bid leader is Mike Duckett, who was second in command at the
company when it crashed in December burdened with a reported 30
million pounds of debts. If the Duckett-led bid fails, then
Donside and its remaining 250 workers plus small US team face a
gloomy future.

Willie Wallace, an official of the trade union GPMU (Graphical
Paper and Media Union) confirmed that PWC receiver Iain Bennet
was still talking with the Duckett and that he was now hoping to
have a sale tied up by the middle of April.  


HUNTINGDON LIFE: Brokers Dump Lab Firm
--------------------------------------

Dresdner Kleinwort Wasserstein said it would no longer deal in
Huntingdon Life Sciences' shares as a result of its policy not to
act as sole market maker for any stock, BBC News reported on
Wednesday.

Under London Stock Exchange rules, Huntingdon has 10 days to find
another two market makers or be downgraded to a more restricted
trading platform.

If the drug-testing firm does not find another two market makers,
its shares will drop from the SEAQ trading platform, which
matches the bid and ask through market makers, to the SEATS plus
platform.

Hundtingdon's shares were 36% down at 4p on Wednesday, valuing
the firm at around 11 million pounds. Over the past two years,
its stocks have lost four-fifths of their value as financial
backers and customers walked away, under pressure from animal
rights campaigners.


HUNTINGDON LIFE: Charles Schwab to Review Trading Policy
--------------------------------------------------------

Retail broker Charles Schwab is reviewing its policy on trading
in shares of Huntingdon Life Sciences Group PLC after the
company's two market makers pulled out, AFX News reported on
Wednesday.

Winterflood Securities and Dresdner Kleinwort Wasserstein have
confirmed they have withdrawn from dealings with the company,
which has already been targeted by animal rights protesters.


HUNTINGDON LIFE: Winterfloods Withdraws As Market Maker
-------------------------------------------------------

Winterflood Securities has confirmed it has withdrawn as one of
the two market makers for Huntingdon Life Sciences Group PLC, AFX
in its March 28 edition said.

Staff working for the company were said to be intimidated over
the last few months with the groups of protesters outside their
homes, threatening letters and e-mails.

In a related development, Dresdner Kleinwort Wasserstein has
withdrawn as the company's other market maker. It is understood
the firm have a policy of not acting as sole market maker for any
stock. No spokesman for Dresdner Kleinwort Wasserstein was
available for comment.


MARKS & SPENCER: Slides As Credit Lyonnais Turns Outright Seller
----------------------------------------------------------------

Shares in troubled retailer Marks & Spencer PLC were down 6-1/2
pence at 243 as Credit Lyonnais turned outright seller of the
stock ahead of next week's trading update, AFX reported on
Wednesday.

Credit Lyonnais is concerned that the trading statement will
reveal very poor clothing and food sales.

Over recent weeks, sector watchers have suggested that sales at
Marks & Spencer have been very weak. As a result, Credit Lyonnais
is cutting its recommendation on Marks & Spencer back to an
outright sell from the previous reduction.

The broker also feels there is significant downside risk on Marks
& Spencer's share price, possibly by as much as 20%.





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-
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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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