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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

              Friday, April 13, 2001, Vol. 2, No. 73


                                     Headlines

* B E L G I U M *

LERNOUT & HAUSPIE: Appoints Ledwick as New CFO
REAL SOFTWARE: To Sell Share in Shire Systems

* G E R M A N Y *

DAIMLERCHRYSLER AG: Sees 1 Billion Loss in First Quarter
DAIMLERCHRYSLER AG: Will Not Sell Stake in Mitsubishi
TELDAFAX AG: Administrator to Sell Assets
TELDAFAX AG: World Access Allows Liquidation

* R U S S I A *

MEDIA-MOST: Court Rejects TNT Liquidation

* S W E D E N *

ICON MEDIALAB: To Hold Shareholders' Meeting on April 27

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

SAIRGROUP: French Airlines Propose Restructuring Plan

* U N I T E D   K I N G D O M *

BIG BEAT: Collapses Into Receivership
CAMMELL LAIRD: Government to Help PcW Find Buyer
CAMMELL LAIRD: RboS Seals Cammell's Fate
CORUS GROUP: Talks With Huta Katowice Failed
DANKA BUSINESS: Receives Offer for Convertible Subordinated Notes
GLOBAL TELESYSTEMS: Completes Solicitation of Consents
HUNTINGDON LIFE: In Talks With Anonymous Adviser
JARVIS PORTER: Posts 4.3 Million Pound Loss
MARKS & SPENCER: Chairman Can Get $1.15 Million Bonus
MARKS & SPENCER: French Retailer Interested in M&S



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


LERNOUT & HAUSPIE: Appoints Ledwick as New CFO
----------------------------------------------
COMPANY PRESS RELEASE, April 11

Lernout & Hauspie Speech Products N.V., a world leader in speech
and language technology, products, and services, announced that
Tim Ledwick has been appointed Chief Financial Officer of the
Company, reporting to President and Chief Executive Officer
Philippe Bodson.

Ledwick will assume immediate responsibility for managing the
global financial operations of L&H, including financial planning
and reporting, tax, treasury, risk management, investor relations
and mergers and acquisitions.

Ledwick joins L&H from Cross Media Marketing Corporation, a New
York-based direct marketing company, where he served as Chief
Financial Officer. Prior to Cross Media Marketing Corporation,
Ledwick was Senior Vice President and Chief Financial Officer of
Cityscape Financial Corporation. He has also held financial and
accounting positions at River Bank America, GTE Corp. and KPMG.

Lernout & Hauspie's President and CEO Philippe Bodson said, "Tim
brings over two decades of domestic and international financial
management experience, as well as significant expertise in the
area of corporate reorganizations. He also brings with him
invaluable leadership as well as team-building and technical
skills, which will be instrumental in helping restore L&H to
financial health and to continue leading the speech and language
technology marketplace."

"I'm excited to be joining a leader in the promising speech and
language technology industry," Ledwick said. "I welcome the
opportunity to address the challenges, financial and otherwise,
that L&H faces today, and look forward to assisting Philippe and
the rest of the management team in developing and implementing
L&H's recovery plan."

Ledwick holds an M.S. degree in Finance from Fairfield
University, and a B.S. degree in Accounting from George
Washington University. He is a Certified Public Accountant and is
a member of the Connecticut Society of Certified Public
Accountants and the AICPA.


REAL SOFTWARE: To Sell Share in Shire Systems
---------------------------------------------
COMPANY PRESS RELEASE, April 10

As part of the implementation of her strategic reorganization,
Real Software has decided to sell back the 53% shares it holds in
Shire Systems Ltd, acquired in January 1999, to the management of
this British specialist in maintenance management.

Adjustment of the present company strategy implies that the added
value of the shire products is not sufficient, partly due to
additional development costs and the low revenues from service
related to shrink-wrapped applications. Therefore, it was decided
to hive off the non-strategic business of Shire Systems Ltd.

This decision was taken in the scope of the initial phase of the
strategic reorganization, to allow Real Software to evolve from a
confederation of companies to one close, sound group.



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


DAIMLERCHRYSLER AG: Sees 1 Billion Loss in First Quarter
--------------------------------------------------------

Due to shrinking sales at its U.S. car and truck units and at
Japan's Mitsubishi Motors Corp., DaimlerChrysler AG will have a
first-quarter operating loss of up to 1 billion euros ($889
million), Bloomberg in its April 11 edition said.

The German carmaker said it would take a 3 billion-euro
reorganization charge in the quarter to cut jobs at the Chrysler
unit and 400 million at Mitsubishi.

The figures were released ahead of its annual shareholders
meeting on Wednesday in Berlin.


DAIMLERCHRYSLER AG: Will Not Sell Stake in Mitsubishi
-----------------------------------------------------

DaimlerChrysler AG does not intent to sell its current 34% stake
in Japan's Mitsubishi Motors Corp, AFX in its April 11 edition
said, citing board chairman Juergen Schrempp.

He said the company has the option to acquire MMC completely
after three years from the time the 34% stake was acquired last
year but there exists no base price for the option. The
corresponding share price will be used when the option is
exercised.

Furthermore, DaimlerChrysler will increase its MMC shareholding
to 37.3% after it acquires the 3.3% shareholding of Volvo AB in
the Japanese company.


TELDAFAX AG: Administrator to Sell Assets
-----------------------------------------

Bernd Reuss, insolvency administrator of TelDaFax AG, began the
process of selling its units and assets yesterday, following a
failed negotiation with Deutsche Telekom, AFX reported.

Teldafax's circuits were shut off after failing to pay line
rental fees owed to its largest supplier, Deutsche Telekom.


TELDAFAX AG: World Access Allows Liquidation
--------------------------------------------

World Access, Inc. announced that their talks with Deutsche
Telekom AG regarding the obligation owed to DT by World Access'
subsidiary, TelDaFax AG, have failed to reach a satisfactory
conclusion in spite of World Access' announced commitment to fund
that obligation, PR Newswire in its April 11 edition said.

Following several days of negotiations in which World Access
indicated its intent to honor TelDaFax's debt to DT, Deutsche
Telekom disconnected TelDaFax's circuits, effectively cutting off
service to most of TelDaFax's German customers.

World Access continued to offer DT payment in exchange for
restoration of TelDaFax's circuits and pre-payments by TelDaFax
for future services. The Company was set to wire transfer DM30
million to DT on April 6, and was prepared to contractually
commit to pay the remaining outstanding balance by the end of
May.

An agreement providing for these payments and for the restoration
of TelDaFax service was delivered to DT by the Company's German
counsel on the morning of April 6, and would have provided for
service to be restored by midday on April 7. After delaying
discussion of the agreement until Friday evening, DT abruptly
suspended talks until Monday April 9, effectively eliminating any
opportunity for TelDaFax circuits to be restored before Tuesday
April 10.

As a consequence of DT's apparent lack of desire to reach an
agreement, and the resulting delay in reactivating TelDaFax
service, World Access' management concluded on April 11 that
irreparable harm has been caused to the commercial prospects of
TelDaFax. It is management's belief that the vast majority of
TelDaFax's long distance customers have switched to another
carrier, most likely DT itself, during the period that service
has been down.

As a result of DT's actions, TelDaFax, which filed for insolvency
on April 2 in an attempt to avoid cancellation of services with
DT, is expected to be liquidated by the insolvency administrator
appointed by the court.

World Access Chairman and Chief Executive Officer John Phillips
said, "On March 31, World Access committed to Deutsche Telekom
that it would be in a position to guarantee funding of TelDaFax's
obligations to DT by Friday, April 6. We met that commitment.
Unfortunately, we now believe that it was never the intention of
DT to come to a good faith agreement on terms that were in their
financial interest as a creditor. As a creditor, their interest
was best served by full collection of past due amounts and
prepayment for services until such amounts were collected. This
is what we agreed to provide, including an immediate payment of
more than half of the outstanding balance.

"As a competitor, however, DT's financial interest was obviously
best served by recovering the vast majority of TelDaFax's
customer base, and earning gross margins on that business which
over time will be well in excess of the amounts owed by TelDaFax.
DT's actions clearly indicate to us that it would prefer to have
its former customers returned and its monopoly position restored,
rather than receive cash payments for TelDaFax's debt.

"This is an obvious example of the failure of deregulation, when
a former monopolist is allowed to favor its interests as a
competitor over those as a creditor. As long as competitive
carriers are entirely dependent on interconnection with the
former monopoly, there must be protections against this sort of
self-serving anti-competitive behavior. This action has not only
destroyed the value created by the fine efforts of TelDaFax's
employees and the capital contributions of its investors, but it
has also dealt a serious blow to competition itself."



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


MEDIA-MOST: Court Rejects TNT Liquidation
-----------------------------------------

An arbitration court in Moscow has dismissed a suit by Russian
fiscal police seeking liquidation of the local television station
owned by opposition media group Media-Most, AFX on Wednesday
reported.

The suit that alleged that TNT was insolvent and did not have
sufficient assets to pay its debts, requested the liquidation of
Media-Most and its holdings TNT, satellite station NTV + and
television station NTV.



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


ICON MEDIALAB: To Hold Shareholders' Meeting on April 27
--------------------------------------------------------

The shareholders of Icon Medialab International AB will convene
in an extraordinary shareholders' meeting on April 27 at 9 a.m.,
at the company's office in Stockholm, an April 11 company press
release said.

Shareholders who wish to attend the shareholders meeting shall be
registered in the shareholders' register with the Swedish
Securities Register Center, no later than ten days prior to the
meeting notify the Company by Friday April 20, 2001 at 16:00 at
the latest, to the address Icon Medialab International AB, att:
Linda Persson, Box 863, 101 27 Stockholm, by fax to the following
number 08-522 390 97 or by e-mail to
bolagsstamma@iconmedialab.se. The notification should include
name, official (company or individual) registration number,
address and telephone number.

Shareholders who have their shares registered with a nominee must
temporarily have them re-registered in their own name in order to
be entitled to attend the meeting. The shareholder must notify
the administrator of this in good time before Tuesday, April 17,
2001 when such registration must be finalized with the Swedish
Securities Register Center.

The board of directors proposes that the shareholders' meeting
approves the board's decision of April 6 to resolve on a new
issue of 12,852,400 new shares, with a nominal value of SEK 0.08
per share. The shares have been directed to a limited selection
of Swedish and international predominantly institutional
investors, with departure from the shareholders' right of first
refusal.

The subscription price per share is 11,7068 which corresponds to
95% of the average price of the Company's share based on the
daily volume-weighted average price, rounded off to four decimal
points, excluding transactions outside of official trading
according to the Bloomberg's report for the five consecutive
trading days immediately prior to the lead investor agreeing to
the terms.

The board's decision to issue has been provisional upon all
investors pledge to subscribe for a 12,850,400 shares and the
shareholders' meeting authorization of the decision to issue
shares.

Payment for the shares shall be made in cash by April 30, 2001 at
the latest. The share capital may increase by a maximum of SEK
1,028,032.

Decision according to the proposal is regulated by the Act
(1987:464) on certain directed issues in stock market companies.
Such decision is valid only if approved by at least nine tenths
of the votes cast and of the shares represented at the Meeting.

The Board of Directors complete list of proposals and documents
in accordance with The Companies Act, Chapter 4, Paragraph 4 will
be available at the Company from Friday, April 20, 2001 and will
be sent to the shareholders that so wish. The annual report of
the Company, which is proposed for acceptance at the ordinary
shareholders' meeting to be held on the same day as the extra
ordinary shareholders' meeting, is available on the Company Web
site at www.iconmedialab.com.



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


SAIRGROUP: French Airlines Propose Restructuring Plan
-----------------------------------------------------

Marc Rochet, chief executive of the French airlines affiliated to
SAirGroup, has proposed a restructuring plan to win SAirGroup's
support, the Financial Times in its Wednesday's report said.

Rochet won approval for a plan to cut operations and jobs.
According to the communist CGT union, Rochet planned to cut the
annual number of AOM and Air Liberte's flight slots at Orly
airport near Paris from 75,000 to 55,000.

Rochet will not only seek judicial protection from the companies'
creditors while the restructuring takes place, but also dispose
Airbus A340 and Fokker F100 aircraft and use only McDonnell
Douglas DC10s and MD83s.

AOM and Air Liberte would need FFr2.8 billion by October to
finance continuing losses and pay for restructuring, Rochet
added.



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


BIG BEAT: Collapses Into Receivership
-------------------------------------

Big Beat, the company behind a string of high-profile pubs and
nightclubs, has collapsed into receivership after the closure of
Home, the company's 10 million-pound Leicester Square venue, for
drugs offences, according to The Times' report yesterday.

Blair Nimmo, from KPMG Corporate Recovery, has been appointed as
its receiver. He planned to continue trading the 23 venues while
seeking buyers.

Big Beat employs about 400 staff and has a turnover of about 26
million pounds.


CAMMELL LAIRD: Government to Help PcW Find Buyer
------------------------------------------------

The government will help PriceWaterhouseCoopers, Cammell Laird
PLC's receivers, find a new buyer for the company, according to
AFX in its April 11 edition, citing a spokesman for the
Department of Trade and Industry.

"We will be contacting the receiver to offer our assistance in
finding a buyer for the yard," the DTI spokesman said.


CAMMELL LAIRD: RboS Seals Cammell's Fate
----------------------------------------

The fate of shipbuilder Cammell Laird PLC, which went into
receivership on Wednesday afternoon, appears to have been sealed
by The Royal Bank of Scotland PLC, according to AFX's report.

Financial advisers Close Brothers and Houlihan Lokey, recently
appointed as corporate financial advisers to resolve the issue of
the mounting interest on the group's bond issues, decided to pull
out.

Cammell had been under threat of a financial meltdown following
the decision by Italian group Costa Crociere to terminate a 51
million sterling contract for the conversion of its cruise ship
Costa Classica.


CORUS GROUP: Talks With Huta Katowice Failed
--------------------------------------------

Negotiations between Corus and Polish steel producer Huta
Katowice SA (HKSA) on a potential investment in HKSA's HK Long
have ended and the project will not be developed to a conclusion,
Commodities Now in its April 11 edition said.

Corus was unable to resolve certain issues including a suitable
financial structure and continuing uncertainties concerning
restructuring of the Polish steel sector.

Both parties expressed disappointment at the unsuccessful
outcome.


DANKA BUSINESS: Receives Offer for Convertible Subordinated Notes
-----------------------------------------------------------------

Danka Business Systems PLC said on Wednesday that it had received
tenders from holders of a total of $143,891,000 in aggregate
principal amount of the 6.75% convertible subordinated notes,
representing approximately 72% of the outstanding notes, Business
Wire reported.

Of the notes tendered pursuant to the exchange offer, $85,706,000
in principal amount has been tendered for the limited cash
option, $806,000 in principal amount has been tendered for the
new 9% note option, and $57,379,000 in principal amount has been
tendered for new 10% note option.

The limited cash option has been over-subscribed. Therefore,
holders choosing the limited cash option should expect to receive
new 9% notes for a portion of the notes that they tender for
cash. The expiration date for the exchange offer is currently
5:00 p.m., New York City time, on April 30, 2001, subject to
satisfaction or waiver of certain conditions, and unless
extended.

Danka's chief financial officer Mark Wolfinger commented, "We are
pleased with the excellent progress being made in our
restructuring plan. The pending sale of Danka Services
International, announced Monday, along with the support of our
bondholders for the exchange offer, will greatly facilitate our
efforts to complete a long-term refinancing of the Company."

The exchange offer is subject to certain conditions, including
participation by holders of at least 95% of the 6.75% convertible
subordinated notes, the refinancing of Danka's existing senior
bank debt, and the sale of DSI, Danka's outsourcing division.

On April 9, 2001, the Company entered into a definitive agreement
to sell DSI to Pitney Bowes Inc., a global provider of integrated
mail and document management solutions, for $290 million in cash,
subject to adjustment depending on DSI's net assets at closing.
Completion of the proposed sale is contingent upon the approval
of Danka's shareholders, senior lenders, and the satisfaction of
other conditions customary to a transaction of this nature. The
Company anticipates that it will close the exchange offer,
complete the refinancing of senior bank debt and close the sale
of DSI on or before June 30, 2001.

Danka Business Systems PLC is one of the world's largest
independent suppliers of office imaging equipment and related
services, parts and supplies. Danka provides office products and
services in approximately 30 countries around the world.

Danka Services International, the outsourcing division of Danka
Business Systems PLC, provides on- and off-site document
management services, including the management of central
reprographics departments, the placement and maintenance of
photocopiers, print-on-demand operations and document archiving
and retrieval services.


GLOBAL TELESYSTEMS: Completes Solicitation of Consents
------------------------------------------------------

Global TeleSystems (Europe) Ltd., formerly known as Esprit
Telecom Group plc, a subsidiary of Global TeleSystems, Inc., has
successfully completed its solicitation of consents from the
holders of its $230,000,000 11 1/2% Senior Notes due 2007, its DM
125,000,000 11 1/2% Senior Notes due 2007, its $150,000,000
10.875% Senior Notes due 2008 and its DM 150,000,000 11% Senior
Notes due 2008 to certain amendments to the indentures governing
the Notes, Business Wire in its April 11 edition said.

These amendments will permit Esprit Telecom to enter into
proposed senior secured credit facilities with its parent, GTS.
These amendments are intended to provide Esprit Telecom and the
other companies that comprise the GTS Business Services division
of GTS with interim funding in connection with the implementation
of the proposed restructuring of Esprit Telecom's obligations
under the Notes announced on March 28, 2001.

The amendments will also permit Esprit Telecom to undertake
certain asset transfers related to the restructuring and to
terminate its obligation under the indentures governing the Notes
to file periodic reports with the SEC.

Valid consents, representing a majority in principal amount of
the outstanding Notes of each series, were received prior to the
expiration of the consent solicitation.


HUNTINGDON LIFE: In Talks With Anonymous Adviser
------------------------------------------------

Huntingdon Life Sciences Plc is in talks with its anonymous
financial adviser and is considering options, according to AFX's
April 11 report.

The company is thought to consider a round of private financing
from an unnamed benefactor as well as seek new protective
measures from the government. Other possible options include
moving abroad or even taking the company private.

Meanwhile, share price of Huntingdon dropped another 2 pence to
3.5 pence on Wednesday after confirmation that online stockbroker
Charles Schwab will no longer be dealing in the company's stock.
Schwab's move comes two weeks after Winterflood Securities and
Dresdner Kleinwort Wasserstein quit their positions as the
group's market-makers.


JARVIS PORTER: Posts 4.3 Million Pound Loss
-------------------------------------------

Jarvis Porter Group Plc, which prints and manufactures labels,
packaging and promotional products, said it had a full-year pre-
tax loss of 4.3 million pounds and no dividend, according to The
Times' report yesterday.

Its earnings before extraordinary items in 2001 were -3.71
million pounds, or -6.2% of sales.


MARKS & SPENCER: Chairman Can Get $1.15 Million Bonus
-----------------------------------------------------

Marks and Spencer executive chairman Luc Vandevelde could receive
a cash and shares bonus of almost 810,000 pounds ($1.15 million)
for his first year at the retailer, according to the Financial
Times on Wednesday.

The controversial bonus, which has led to increased tension
within M&S, comes in the wake of M&S's plan to cut 4,400 jobs as
part of a restructuring.

French unions plans to further demonstrate to reinforce Monday's
legal victory in the court's order in the suspension of M&S's
plan to close its 18 directly owned outlets in France. They also
plan a demonstration in London by M&S workers from its 38 stores
across the continent.


MARKS & SPENCER: French Retailer Interested in M&S
--------------------------------------------------

French retailer Pinault Printemps Redoute is interested in taking
over some of the French and European stores owned by Marks &
Spencer, Namnews in its April 10 edition said.

According to Serge Weinberg, his group was not close to reaching
a deal on any stores, but if Marks & Spencer agrees to sell
certain stores to PPR, they would take on the employees working
in those stores.




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.

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
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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
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