/raid1/www/Hosts/bankrupt/TCREUR_Public/010511.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, May 11, 2001, Vol. 2, No. 93


                                           Headlines

* A U S T R I A *

AIR ALPS: Rescue Package May Boost Bolzano Airport

* B E L G I U M *

LERNOUT & HAUSPIE: Buyers Express Interest in Technology Assets
LERNOUT & HAUSPIE: KPMG Dismisses Stonington Accusations

* F I N L A N D *

F-SECURE OYJ: Chief Sees Sales Slowdown

* F R A N C E *

VALEO SA: Appoints Goutard as Supervisory Board Chairman

* G E R M A N Y *

ADVANCED MEDIEN: Appoints CFO Dauer as Board Spokesman
DAIMLERCHRYSLER: Files Motion to Dismiss Lawsuit
INFOMATEC AG: Files for Insolvency
INTERSHOP COMMUNICATINS: Regulator Criticizes Profit Warning
PHILIPP HOLZMANN: To Plough State Aid Into U.S. Unit
SYSTRACOM BANK: BAKred Begins Insolvency Action

* I T A L Y *

CANTIERE ORAM: Ferretti Acquires Boatyard for 25 Billion Lira

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

CROWN VAN GELDER: Insolvent Paper Manufacturer Seeks Partner
VERSATEL TELECOM: Fears Suspension in Amsterdam

* P O L A N D *

ELEKTRIM SA: Shareholders to Decide Who Will Control Unit

* S P A I N *

TERRA LYCOS: To End Free Service in Brazil

* U N I T E D   K I N G D O M *

BRIGHT STATION: Inkwell Direct Buys officeshopper Assets
BRITISH SKY: Loss Widens to $149.78 Million in Third Quarter
BRITISH TELECOM: Plans to Break Up
BRITISH TELECOM: To Sell Off Operations
MARKS & SPENCER: France Ex-Bosses Face Lawsuit
MARKS & SPENCER: Li & Fung Not Interested in Retailer
MARKS & SPENCER: Retailers Deny Bid for M&S Stores
MONEY CHANNEL: Staff Fights for Salaries


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


AIR ALPS: Rescue Package May Boost Bolzano Airport
--------------------------------------------------

The rescue package for insolvent regional carrier Air Alps could
provide a lifeline for Bolzano Airport, which has suffered from
organizational problems and poor capacity utilization, Die Presse
on Tuesday reported.

A group of investors from the Italian region of Alto Adige,
including the regional government and regional savings bank Cassa
di Risparmio di Bolzano, plan to acquire Air Alps and intend to
increase the number of destinations served from Bolzano.

The only direct flights at present are those to Rome and
Frankfurt.


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


LERNOUT & HAUSPIE: Buyers Express Interest in Technology Assets
---------------------------------------------------------------

Lernout & Hauspie said there have been signs of interest from
buyers since the announcement of the sale of the company's
technology assets two weeks ago, AFX News reported on Wednesday.
Chief executive Philippe Bodson declined to give names.

At end of April, Bodson told a shareholders meeting that all the
company's assets were being put up for sale, including technology
assets as well as application operations.

Bodson added that creditor banks don't have much choice. He is
going to sell everything.


LERNOUT & HAUSPIE: KPMG Dismisses Stonington Accusations
--------------------------------------------------------

KPMG Belgium has on Wednesday dismissed claims made in a formal
lawsuit by Lernout & Hauspie Speech Products NV shareholder
Stonington Partners Inc., the Wall Street Journal reported.

Stonington alleged that KPMG Belgium played an active role in
misleading them in the financial statements issued by L&H,
audited by KPMG.

KPMG maintains it acted legally and professionally throughout its
dealings with L&H and in accordance with professional codes of
practice.


=============
F I N L A N D
=============


F-SECURE OYJ: Chief Sees Sales Slowdown
---------------------------------------

F-Secure expects a slowdown in European sales after larger tech
peers gave similar warnings, the May 8 edition of Reuters said.

Earlier, F-Secure reported a narrower-than-expected loss of 3.9
million euros ($3.48 million). As a result, the data security
firm will cut staff and book 12.5 million euros in fixed costs in
the third quarter.

F-Secure also anticipates it will post a full-year bottom-line
loss due to the slowdown and restructuring costs.


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


VALEO SA: Appoints Goutard as Supervisory Board Chairman
--------------------------------------------------------

Noel Goutard was appointed Chairman of the Supervisory Board and
Guy de Wouters Vice Chairman of Valeo SA, Business Wire reported
on Wednesday. Three committees composed of a Strategy Committee,
an Audit Committee and a Remunerations Committee will support the
Board.

The Supervisory Board appointed Thierry Morin as Chairman of the
Management Board. The other members are Luc Bleriot, Bernard
Geymond, Geric Lebedoff and Vincent Marcel.

The Supervisory Board recognized that Valeo has been going
through a crisis that requires a new strategy, with priority
being given to the creation of value in the interest of the
company and shareholders alike.

However, the current deterioration in the world automotive
equipment market together with the situation at Valeo imposes a
new value-creating strategy based on rapid turnaround of the
margins and cash flow of all Valeo's Branches, redeployment of
the business portfolio, development of high potential Electrical
and Electronics activities, and an active redistribution policy
toward shareholders.

The Supervisory Board voiced its full support of the new
Management Board to implement this strategy and rapidly maximize
its impact.

Valeo is an independent industrial group fully focused on the
design, production and sale of components, integrated systems and
modules for cars and trucks and ranks among the world's top
automotive suppliers.


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


ADVANCED MEDIEN: Appoints CFO Dauer as Board Spokesman
------------------------------------------------------

The supervisory board of Advanced Medien AG has appointed Chief
Financial Officer Otto Dauer during the regular board meeting on
May 7 as spokesman of the board, the Frankfurt Stock Exchange in
its May 8 press release said.

Dauer, who has been with Advanced Medien since March 1 and was
appointed as a board member for Finances and Accounting on March
5, has full support for the implementation of all necessary
measures to restructure the Group.

During decades of work in banking, Dauer had the opportunity to
acquire solid knowledge of the media industry.

The supervisory board also appointed Veronika Morawetz as the
board member responsible for film rentals.


DAIMLERCHRYSLER: Files Motion to Dismiss Lawsuit
------------------------------------------------

DaimlerChrysler AG filed a motion to dismiss the $8 billion
lawsuit by investor Tracinda Corp., as president Dieter Zetsche
of the Chyrsler unit in the U.S. announced the outlook growth in
its share of the European auto market would be scaled back,
according to the Wall Street Journal's May 10 report.

In the motion filed in U.S. District Court in Wilmington,
Delaware, the auto maker described as baseless the lawsuits'
claims that the company and its top executives deceived investors
and violated securities laws when they described the creation of
the company as a merger of equals rather than a takeover of
Chrysler by Daimler-Benz.

DaimlerChrysler's motion also sought to throw out a similar
lawsuit by New York investment firm Glickenhaus & Co., and to
dismiss a class-action lawsuit that originated as separate suits
filed by about two-dozen smaller investors.

The Chrysler unit continued to report losses for last year's
fourth quarter and this year's first quarter, putting all of
DaimlerChrysler into the red this year.


INFOMATEC AG: Files for Insolvency
----------------------------------

Despite positive developments over the last few months in gaining
projects, contracts and new potential investors, troubled
software maker Infomatec AG has filed for insolvency proceedings
because of inadequate cash, the Wall Street Journal reported
yesterday.

Infomatec joins a list of Neuer Markt companies, including
Gigabell AG, Micrologica AG and Herzog Telecom AG, which have
filed for insolvency. The companies' financial difficulties
became apparent during the past 14 months, as the Neuer Markt
lost more than 80% of its value and fell out of favor with many
investors.

Last year, Infomatec's former co-chief executives were arrested
on charges of insider trading and share-price manipulation.


INTERSHOP COMMUNICATIONS: Regulator Criticizes Profit Warning
------------------------------------------------------------

A working group of the German Federal Securities Supervisory
Office, the BAWe, made a preliminary decision that Intershop
Communications AG's profit warning in January came late, the May
10 edition of the Wall Street Journal said.

Section 15 of Germany's Federal Securities Act states that
publicly traded companies must immediately publish any
information that is likely to exert significant influence on the
stock exchange price.

Intershop also faces class-action legal proceedings in the U.S.,
alleging the company of suppressing market-sensitive information.
Law firms such as Milberg Weiss Bershad Hynes & Lerach LLP and
Shalov Stone & Bonner are preparing suits.

Intershop spokesman Heiner Schaumann refuses to comment on the
matter.


PHILIPP HOLZMANN: To Plough State Aid Into U.S. Unit
----------------------------------------------------

Philipp Holzmann AG will plough the 375 million euro German state
aid package into its U.S. unit JA Jones Construction, the
Wednesday edition of AFX News said.

Chief executive Konrad Hinrichs expects Jones to make a profit of
80 million deutsche mark and for the company to profit this year,
after its net loss in 2000 amounted to 156 million deutsche mark.

Hinrichs reiterated that he would have found a partner for
Holzmann by the time he leaves his post at the end of the year.
He would also like to replace Gerhard Neipp as head of the
supervisory board.


SYSTRACOM BANK: BAKred Begins Insolvency Action
-----------------------------------------------

German banking watchdog BAKred had begun insolvency proceedings
against web broker Systracom Bank at a Berlin court, according to
the May 8 edition of Reuters.

Systracom informed BAKred that the online broker was no longer
able to meet its financial obligations after the firm had
unsuccessfully tried to solve its financial crisis by injecting
fresh capital from an outside investor. BAKred shut down all of
Systracom's operations last month saying the firm's capital base
was under threat.

No one at Systracom was immediately available for comment.


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


CANTIERE ORAM: Ferretti Acquires Boatyard for 25 Billion Lira
-------------------------------------------------------------

Italian shipbuilder Ferretti has acquired for 25 billion lira the
boat building facilities of leisure craft maker Cantiere Oram,
which was declared bankrupt by the La Spezia court, the Il Sole
24 Ore in its May 5 edition said.

The Ferretti group operates 11 yards overall, 10 of which are in
Italy. Last year it reported turnover of some 380 billion lira
and net profits of 26 billion lira.


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


CROWN VAN GELDER: Insolvent Paper Manufacturer Seeks Partner
------------------------------------------------------------

Paper manufacturer Crown van Gelder (CVG), which was declared
insolvent in 1981, is suffering from unfavorable prospects as its
is currently seeking a partner, the De Telegraaf & World Reporter
reported on Monday.

The company is deemed to be too small to survive on its own in
the long term, due to far reaching concentration of the market
and increasing environmental demands.


VERSATEL TELECOM: Fears Suspension in Amsterdam
-----------------------------------------------

Shares in telecom group Versatel are in danger of being suspended
by the Amsterdam Stock Exchange (AEX) if its equity base turned
negative, according to The Irish Times in its yesterday's report.

Versatel's shareholder equity fell to 214 million euro at the end
of March from 341 million euro at the end of December. But
analysts at ABN Amro believe the concerns over a suspension are
overplayed.

Difficulties with the AEX came as the telecom company announced
higher losses in the first quarter from 51 million euro to 131
million euro. Chairman Raj Raithatha also said the losses before
tax, interest charges and write-offs actually fell from 28
million euro in fourth-quarter 2000 to 26 million euro in the
first-quarter of 2001.


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


ELEKTRIM SA: Shareholders to Decide Who Will Control Unit
---------------------------------------------------------

A key shareholders' meeting at Elektrim SA on Monday will likely
put institutional investors in a position to decide who will
control the company's unit, Polska Telefonia Cyfrowa, the Wall
Street Journal reported yesterday.

Deutsche Telekom and Vivendi are expected to present their
competing proposals for Elektrim's future to the new board. For
several months, the two companies feud over control of PTC, 51%
owned by Elektrim, 45% by Deutsche Telekom and 4% by Holdco.

"Neither Vivendi nor Deutsche will gain control of the
supervisory board, so the situation is far from clear," Raffeisen
Investment senior analyst Pawel Pucharski said. "Both Vivendi and
Deutsche Telekom will have to fight for the funds' support."


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


TERRA LYCOS: To End Free Service in Brazil
------------------------------------------

Terra Lycos SA will end its Terra Livre free Internet access
service in Brazil due to the unfavorable market conditions,
according to AFX News' Wednesday edition.

The move means it will not accept new applications for the
services from mid-May, when it will launch a marketing campaign
for a pay service that includes 60 free days of access.


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


BRIGHT STATION: Inkwell Direct Buys officeshopper Assets
--------------------------------------------------------

Bright Station plc on Wednesday said it has entered into a
legally binding agreement regarding the sale of the name,
customer list and debtor book of its online office supplies
company officeshopper to Inkwell Direct for up to 450,000 pounds
in cash, Business Wire reported.

In the year ended December 31, 2000, officeshopper had turnover
of 1.7 million pounds and a loss before interest and tax of 2.7
million pounds. The net book value of the assets is 357,000
pounds.

Consideration of 195,000 pounds will be payable within the next
30 days, with the balance of consideration payable based upon the
recoverability of debtor balances and the gross profit of
officeshopper over the next 18 months.

The disposal of the officeshopper assets will reduce the ongoing
operational cash outflows of the group and will mitigate
anticipated closure costs. Bright Station will retain the
liability for any costs associated with the closure of the
officeshopper operations.

As part of the Group restructuring, Bright Station has also
transferred its 100% shareholding in WebTop to Smartlogik, its
knowledge management subsidiary. Smartlogik intends to leverage
WebTop's 500 million page index of the Web to complement their
product offering, allowing Smartlogik customers to search both
internal and external information simultaneously.

In addition, WebTop's leading Cambridge-based programmers will
work on enhancing Smartlogik's knowledge management tools.

The only non-core business now remaining within the Group is
Sparza, where the cost base has been reduced and plans made for
its closure in the event that an offer is not forthcoming
shortly.

During the past month, corporate overheads have also been
curtailed, and the corporate center is now focused exclusively on
completing the restructuring and on securing additional financing
for the ongoing business, Smartlogik.


BRITISH SKY: Loss Widens to $149.78 Million in Third Quarter
------------------------------------------------------------

British Sky Broadcasting PLC said its pretax loss in the third-
quarter loss widened to 105.1 million pounds ($149.78 million or
169.50 euros) from a loss of 28.4 million pounds in the same
period a year earlier, according to the Wall Street Journal's
report yesterday.

The losses mounted as BSkyB's direct-to-home subscriber-base
increased by 250,000 in the quarter, reaching 5.3 million. The
satellite broadcaster is targeting 7 million subscribers by the
end of 2003.

The broadcaster's churn rate, or the number of subscribers who
cancel subscriptions, was up slightly at 9.9%, compared with 9.8%
at the end of its first half.


BRITISH TELECOM: Plans to Break Up
----------------------------------

British Telecommunication plans to call on shareholders to fund a
$8.58 billion rescue rights issue to help cut its $42.7 billion
debt, CNN News in its May 9 edition reported. The rights issue
will give existing shareholders the chance to buy new shares in
the company at a discounted price.

According to news sources, BT also plans to completely demerge
its mobile phone division BT Wireless, sell its Yellow Pages
business Yell, and sell its stake in Concert to joint venture
partner AT&T.

A BT spokesman declined to comment, calling the report rumor and
speculation.


BRITISH TELECOM: To Sell Off Operations
---------------------------------------

British Telecom will increase its efforts to find buyers for its
remaining Asian mobile phone divisions and its wireless
operations in Canada and New Zealand to raise another 1 billion
pounds, reported the Observer & World Reporter in its May 6
edition.

The cash-strapped telecom giant is talking to a number of parties
interested in its 20% stake in Hong Kong mobile operator
Smartone. SingTel of Singapore is thought to be among the
frontrunners for BT's stake.

BT is also looking to offload its minority stakes in South
Korea's LG Telecom, India's Bharti Cellular, and Starhub of
Singapore.

BT also wants to sell New Zealand mobile phone operator Clear
Communications, as well as its 17% stake in Canadian wireless
firm Rogers Cantel.


MARKS & SPENCER: France Ex-Bosses Face Lawsuit
----------------------------------------------

The CSL union has sued the former chairman of Marks & Spencer
PLC's French operations, Clive Nickolds, and the president of the
company's works council, Patrick Anglaret, for allegedly
obstructing the proper running of the works council, according to
AFX News' May 9 edition.

The CSL, which argues that Nickolds and Anglaret breached
employment regulations in force in France regarding information
and consultation of employees' representatives, when they
disclosed M&S' plan to close its French operations, is claiming
100,000 ffr in damages.


MARKS & SPENCER: Li & Fung Not Interested in Retailer
-----------------------------------------------------

Retail service director Bruno Li of Li & Fung (Retailing) Ltd.
said Thursday it is not interested in acquiring Marks & Spencer
PLC's retail outlets in Hong Kong, Wall Street Journal reported
on Wednesday.

Li & Fung Ltd. managing director William Fung further said he
wouldn't rule out buying Marks & Spencer Hong Kong business
through Li & Fung (Retailing).

Marks & Spencer plans to sell and franchise its 10 outlets in
Hong Kong as part of its global restructuring plan.


MARKS & SPENCER: Retailers Deny Bid for M&S Stores
--------------------------------------------------

Retailer El Corte Ingles SA and SA des Galeries Lafayette denied
they are in talks to jointly bid for Marks and Spencer PLC's
French and Spanish stores, AFX News in its May 9 edition said.

Galeries Lafayette general director for large stores Joel Mormet
said the French group has already expressed interest in acquiring
Marks and Spencer's stores in France, but has no plans to present
a bid with El Corte Ingles.


MONEY CHANNEL: Staff Fights for Salaries
----------------------------------------

About 80 journalists and technicians of Money Channel, the
television venture that specializes in personal finance advice,
are consulting their unions to fight for thousands of pounds
which they say is owed to them in salaries and compensation,
according to The Times in its Wednesday report.

Communicopia, the production company that ran the Money Channel
under contract, laid off employees after administrator Michael
Gercke of PricewaterhouseCoopers said he was not in a position to
pay outstanding invoices.

Money Channel was placed in administration last week, spelling
huge potential losses for backers including company founder Adam
Faith and stockbroker Paul Killik.

                                   ***********

        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 Ma. Cristina D. Pernites, Editors.

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

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