/raid1/www/Hosts/bankrupt/TCREUR_Public/010418.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, April 18, 2001, Vol. 2, No. 76


                            Headlines

* G E R M A N Y *

DAIMLERCHRYSLER AG: Ceases Dodge Production in Brazil
DAIMLERCHRYSLER AG: Hyundai Rejects Reports to End Alliance
DAIMLERCHRYSLER AG: Proceeds With Chrysler Restructuring

* H U N G A R Y *

MALEV AIRLINES: Gives Up Soviet-Era Planes

* I T A L Y *

ALITALIA-LINEE: UK Staff Looses Battle

* R O M A N I A *

BANCA AGRICOLA: Government Sells Bank for US$52 Million

* R U S S I A *

MEDIA-MOST: Authorities to Destroy Journalists
NTV: Media Empire Feels More Pressure

* S L O V A K   R E P U B L I C *

SLOVAK TELEVISION: ST Shuts Down Live Broadcasts of State TV

* S W E D E N *

LM ERICSSON: To Cut 6,000 More Jobs

* U N I T E D   K I N G D O M *

LASTMINUTE.COM: Denies Retreat Claims
MARKS & SPENCER: To Plan Management Revamp
NAYLOR FOODS: Calls in Receivers
PREMIER HOTELS: Hermes to Save Hotel Chain
RAILTRACK GROUP: Agrees Above Average Pay Rise


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


DAIMLERCHRYSLER AG: Ceases Dodge Production in Brazil
-----------------------------------------------------

DaimlerChrysler will stop the production of Dodge Dakota at its
Brazil unit by mid April 2001, the South American Business
Information reported on Monday. Specialists in the sector believe
the unit can be sold to other players as Nissan or Mitsubishi.

The state facility is able to produce 40,000 vehicles per year.


DAIMLERCHRYSLER AG: Hyundai Rejects Reports to End Alliance
-----------------------------------------------------------

Hyundai Motor Co rejected reports that DaimlerChrysler AG will
put an end to their alliance with Hyundai following its decision
last week to raise its stake in Mitsubishi Motors Corp, AFX on
Monday reported.

Earlier, Automotive News cited Mitsubishi's Rolf Eckrodt as
telling that talks with the German company, aimed at joint small-
car development and the establishment of a 50-50 truck-making
venture with Hyundai, will cease as the company concentrates
fully on its alliance with Mitsubishi.


DAIMLERCHRYSLER AG: Proceeds With Chrysler Restructuring
--------------------------------------------------------

The restructuring of the Chrysler Group is moving along according
to plan, and agreements on cuts in the cost of materials in 2001
have already been reached, the company in its April 11 press
release reported, citing DaimlerChrysler CEO Jrgen E. Schrempp
at the Annual Meeting in Berlin.

"The Chrysler sales network has been restructured and realigned.
Sales targets for the first three months have all been met. And
we now have a lower inventory than any of our competitors,"
Schrempp added.

The chairman reiterated the expectation already announced at the
end of February during the Annual Press Conference that the
Chrysler Group should reach the break-even point in 2002. A
return on sales is forecast to come in at approximately four
percent in 2003: "With an operating profit of more than EUR 2
billion, that would once again represent a major contribution to
Group results."

Schrempp also told the shareholders that, "Both the Chrysler
Group and our alliance with Mitsubishi are integral and essential
elements of our corporate strategy. They are not expendable."

At DaimlerChrysler, the first quarter of 2001 was marked
primarily by the restructuring measures and the operating losses
at the Chrysler Group, Freightliner and Mitsubishi. As already
announced at the Annual Press Conference, the largest part of the
restructuring costs for Chrysler will be recorded as one-time
charges of 3 billion euro in the first quarter. The same is true
for the Mitsubishi Motors Corporation (MMC), for which
DaimlerChrysler will accrue up to approximately 400 million euro
of the total restructuring costs during the first quarter.

Without these one-time effects, DaimlerChrysler expects to post
an operating loss of between 0.8 and 1.0 billion euro during the
first three months of the year, as was also announced at the end
of February.

DaimlerChrysler will publish a comprehensive interim report for
the first quarter of 2001 on April 25.



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


MALEV AIRLINES: Gives Up Soviet-Era Planes
------------------------------------------

Malev has given up its five remaining Tupolev TU-154 airliners, a
Soviet-built model that the Hungarian national airline has used
since 1973 last week, Budapest Sun in its April 13 edition said.

The 18 TU-154s operated by MALEV made over 163,000 flights,
carried 15 million passengers, and flew 222 million kilometers.


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


ALITALIA-LINEE: UK Staff Looses Battle
--------------------------------------

Italy's flag carrier Alitalia received a much-needed boost last
week when it won a case brought by about 200 of its UK staff,
according to The Independent's April 15 report.

The High Court judge ruled that Alitalia did not have to pay the
ground and office staff workers in UK, who claimed that the
airline promised them shares of up to 10,000 pounds per person
for helping it to stave off bankruptcy.

An Alitalia spokesman in the UK declined to comment on specific
details of the case but said they accept the judge's final
verdict.


=============
R O M A N I A
=============


BANCA AGRICOLA: Government Sells Bank for US$52 Million
-------------------------------------------------------

Romania's main privatization agency signed a $52 million deal for
the sale of Banca Agricola (BA) to a consortium including
Raiffeisen Zentralbank Oesterreich AG and the Romanian American
Enterprise Fund, according to Reuters' Friday report, citing
Privatization Minister Ovidiu Musetescu.

The deal includes the sale of a 98.2% stake in BA for $15 million
and a pledge by Raiffeisen to inject $37 million to raise the
bank's capital. The money will then be deposited into an escrow
account with a Romanian bank for 95 days until the government
covers about $30 million losses incurred by BA in recent months.

Last year, the government injected about $150 million into BA to
help its recovery following a three-year restructuring after
revealing large non-performing loans.


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


MEDIA-MOST: Authorities to Destroy Journalists
----------------------------------------------

The authorities are continuing their efforts to destroy the
former NTV team and other companies of Media-MOST, RosBusiness
Consulting in its April 16 edition reported.

Detective Valery Sarkisov of the Federal Tax Police Service said
they filed a criminal case against TNT TV company's chief
accountant Yelena Metlikina over a tax dispute, and intends to
file charges against TNT General Director Pavel Korchagin,
despite a report by a group of leading tax experts that the tax
police's accusations are groundless.

Medi-MOST pointed out that the authorities are pressing the TNT
management to finally deprive the former NTV team of any chance
to broadcast their programs.


NTV: Media Empire Feels More Pressure
-------------------------------------

The independent media empire of Russian tycoon Vladimir Gusinsky
felt more pressures on Monday as Sevodnya daily newspaper said it
is closing and TNT bosses were reportedly charged with tax
evasion, Reuters in its April 16 edition reported.

Sem Dnei publishing house, where Gusinsky was recently outvoted
by state-run gas monopoly Gazprom and an individual shareholder,
issued a statement saying it would stop financing the Sevodnya
daily. The paper's editor announced he would close it down.

When Gazprom took over Gusinsky's NTV, rebel journalist from the
TV station who refused to work with the gas monopoly quit to
operate satellite channel, TNT, also owned by Gusinsky.

However, Gusinsky's spokesman Dimitry Ostalsky said tax police
charged TNT's chief accountant over a tax dispute that had
already been settled. The station's general director was also
expected to face charges in the case.

Gusinsky, who is now in Spain on fraud charges, says he is a
victim of a Kremlin plot to silence a vocal critic of President
Vladimir Putin's policies.


=============================
S L O V A K   R E P U B L I C
=============================


SLOVAK TELEVISION: ST Shuts Down Live Broadcasts of State TV
------------------------------------------------------------

Telecom firm Slovenska Telekomunikacie has shut down live
broadcasts of soccer matches and other live events by state
television outside of studio until outstanding 112 million crowns
($2.3 million) of debts are paid, Reuters in its April 13 report
said.

"Since April 1, we have not been providing any mobile broadcasts
for Slovak Television until it pays off its debt or until we come
to an agreement on its payment," ST spokeswoman Gabriela Nemkyova
told Reuters.

Neither STV nor the government was immediately available to
comment on the issue. The government is expected to discuss the
matter next week.

Slovak Television's two channels STV1 and STV2 have remained
fully dependent on state funds since 1989.


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


LM ERICSSON: To Cut 6,000 More Jobs
-----------------------------------

Telecom equipment maker LM Ericsson AB is expected to announce at
least 6,000 more job cuts when the company reports its first-
quarter results on Friday, the Financial Times reported on
Monday.

"We have to focus much harder on our core business and eliminate
activities and structures that might be appropriate in times of
strong growth cycles but are simply unacceptable in times like we
have now," chief executive Kurt Hellstrom said.

The cuts are expected to hit the group's operations inside and
outside Sweden, and center on marketing, administration, research
and development and IT.

Some analysts believe as many as 10,000 additional job cuts may
be needed if the savings target of 20 billion Swedish krona a
year is to be reached.


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


LASTMINUTE.COM: Denies Retreat Claims
-------------------------------------

Lastminute.com has denied that it is shutting down any of its
international operations and has given its Italian and Spanish
subsidiaries until the end of June to find a strategic investor
or buyer, The Industry Standard Europe in its April 12 edition
said.

According to CEO Brent Hoberman of Lastminute, which has
operations in the UK, France, Germany, Italy, Spain, Sweden, the
Netherlands and Australia, they are not scaling back its European
operations. Both its Italian and Spanish subsidiaries are doing
very well that there is no need of cash. He added that in Germany
and the Netherlands, the company may have lost one or two people,
but he would not call it a layoff.

Since Lastminute's entry in the London Stock Exchange a year ago,
the company's share price has fallen by over 90% and lost 11.7
million pounds (19 million euros) in its first fiscal quarter
ending 31 December 31, 2000.


MARKS & SPENCER: To Plan Management Revamp
------------------------------------------

Marks & Spencer is understood to be planning a top-level
management reshuffle and announce the changes when the ailing
store chain reports its annual profits on May 22, according to
The Guardian's April 17 edition.

If a reshuffle goes ahead, it will be the third in two years. In
the past two-and-a-half years, the board has been almost
completely replaced and only finance director Robert Colville
remained.

In a related news, M&S is also expected to name this week two new
design heads for the womenswear and menswear, in an attempt to
win back dissatisfied customers and halt the recent slide in
sales.


NAYLOR FOODS: Calls in Receivers
--------------------------------

Naylor Foods has called in administrative receivers after it
became a victim of intense competition and cost pressures, The
Guardian & World Reporter in its April 14 edition said.

KPMG Corporate Recovery is hoping to find a buyer for the 120-
year-old company specializing in cold storage and distribution
services.


PREMIER HOTELS: Hermes to Save Hotel Chain
------------------------------------------

Simon Hermes, understood to be Premier Hotels' biggest
shareholder, has emerged as a potential savior of parts of the
private hotel chain that crashed into administrative receivership
last week, The Daily Telegraph & World Reporter in its April 14
edition said.

Hermes is in talks with receivers Deloitte & Touche about trying
to salvage parts of the group. Investment bank Close Brothers is
assisting the potential rescue, while accountancy firm Grant
Thornton will help determine the group's liabilities.

Accor of France and Whitbread are thought to have shown early
interest in the hotel group.


RAILTRACK GROUP: Agrees Above Average Pay Rise
----------------------------------------------

Railtrack Group Plc has agreed with the unions for an across-the-
board 3.6% pay rise for its 11,000 staff and to an extra day's
holiday for those workers with the lowest allowance of 25 days,
ITN-Money on Monday reported.

The move is part of a drive to attract high-quality staff, who
have ignored Railtrack following the PR battering it has taken
since the Hatfield rail crash.

Furthermore, Railtrack is still in negotiations with the unions
on plans to reduce the working week from 37 to 36 hours, and
eventually 35 hours.




       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
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Information contained herein is obtained from sources believed to
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thereof are $25 each.  For subscription information, contact
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