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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

             Tuesday, June 12, 2001, Vol. 2, No. 114


                            Headlines

* A U S T R I A *

RSL AUSTRIA: Etel Offers to Buy RSL

* B E L G I U M *

LERNOUT & HAUSPIE: Ex-CEO Will Not Fight Extradition
LERNOUT & HAUSPIE: To Hold Meetings on June 29

* C Z E C H   R E P U B L I C *

JIHOCESKE PIVOVARY: Nears Bankruptcy
PLAVBA LABSKA: Bankruptcy Imminent

* F R A N C E *

VALEO SA: Plans Further Management Overhaul

* G E R M A N Y *

INTERSHOP COMMUNICATIONS: Prepares for Worst Case Scenario

* H U N G A R Y *

DAM STEEL: To Dismiss 289 Staffers

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

RING!ROSA PRODUCTS: Sells Unit Without Notifying Receiver

* N O R W A Y *

ENITEL: Moody's Places Ratings on Downgrade Review

* P O L A N D *

HUTA KATOWICE: Banks Extend Credit Payment Deadline

* S W E D E N *

BOLIDEN LIMITED: To Sell Chile Mines to Canadian Group

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

SWISSAIR GROUP: Slumps as ABN Amro Cuts Price Target
SWISSAIR GROUP: Capital May Already Be Under Critical Level

* U N I T E D   K I N G D O M *

BALTIMORE TECHNOLOGIES: Now a Takeover Target
BRITISH TELECOM: Faces Possible Pension Shortfall
DANKA BUSINESS: Agrees With Bank on New Credit Facility Terms
EIDOS PLC: Finds New Finance Chief
GAMEPLAY PLC: Dives on Redundancy Plan
GAMEPLAY PLC: Sells Businesses for 3.4MM Pounds
HARLAND & WOLFF: Wins 23MM-Pound Lifeline
MARKS & SPENCER: Pays Ex-Directors 2.7MM Pounds
RAILTRACK GROUP: Considers Alliance With Train Operators
ROYAL DOULTON: Seeks Voluntary Redundancy


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


RSL AUSTRIA: Etel Offers to Buy RSL
-----------------------------------

Telecom firm ETEL has placed a bid to buy troubled telecom firm RSL
Austria for about 2.4 million pounds, according to the Irish Times'
June 8 report.  The bid includes an offer to pay a further 2.4
million pounds to cover RSL's accumulated debt,

There has been speculation about RSL's operations in Europe since
its parent company, US-based RSL COM, filed for chapter 11 in
mid-March.

A deal may be announced this week.


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


LERNOUT & HAUSPIE: Ex-CEO Will Not Fight Extradition
----------------------------------------------------

Former Lernout & Hauspie Speech Products NV chief executive
Gaston Bastiaens will not fight extradition to Belgium to face
fraud charges, insider trading, stock market manipulation and
accounting law violations, Reuters reported on Friday.

Bastiaens had previously asked Belgian authorities to be released
from jail to put his affairs in order, but instead has worked
from jail to get organized. U.S. federal prosecutors said they
will oppose Bastiaens's request for bail.

Earlier this month, Bastiaens filed for bankruptcy, claiming
liabilities of $10 million to $50 million and assets of $500,000
to $1 million.


LERNOUT & HAUSPIE: To Hold Meetings on June 29
----------------------------------------------

Lernout & Hauspie Speech Products N.V., a world leader in speech
and language technology, products and services, announced on June
8 that an Extraordinary Shareholders' Meeting and an Annual
General Meeting of Stockholders would be held on June 29, 2001 at
the Auris Centre, Flanders Language Valley 1, Ieper, Belgium.

The ESM will start at 2 o'clock in the afternoon, local time,
while the AGM will start at 3 o'clock.

Only the stockholders registered in the Company's stockholders'
register as of June 22 will be entitled to attend or to vote at
the meeting.

Additional information concerning the Meeting, including the
agenda of the ESM and AGM, will be available in the coming days
and weeks on www.lhsl.com.


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


JIHOCESKE PIVOVARY: Nears Bankruptcy
------------------------------------

Jihoceske Pivovary is close to bankruptcy, according to Czech
AM's June 7 edition.

The brewer posted a 186.6 million koruna loss last year, compared
with losses of 285.2 million koruna and 230.4 million koruna in
1999 and 1998, respectively.

Industry insiders attribute the poor results in part to bad
investment decisions made by Jihoceske Pivovary's previous
management.


PLAVBA LABSKA: Bankruptcy Imminent
----------------------------------

Ceskoslovenska Plavba Labska has confirmed that it is close to
bankruptcy, according to Czech A.M. in its June 8 edition.

The shipping company, which has accumulated losses of nearly 50%
of its basic capital, posted a 724 million koruna loss in 2000
and is now unable to pay wages or buy fuel.


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


VALEO SA: Plans Further Management Overhaul
-------------------------------------------

Automotive components group Valeo is planning another management
overhaul following the removal of Andre Navarri as chairman and
chief executive earlier this year.

Thierry Morin, the former finance director who replaced Navarri
in March, has appointed Luc Bleriot to head Valeo's expansion in
electronic systems.

The shake-up is designed to refocus Valeo around growth areas
in vehicle electronic systems, following a sharp decline in
profitability over the past year and a failure to fully integrate
newly acquired companies.

Meanwhile, Valeo executives in the U.S. are seeking a
reorganization of the group's largest plant at New York.


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


INTERSHOP COMMUNICATIONS: Prepares for Worst Case Scenario
----------------------------------------------------------

Intershop Communications AG will ask shareholders at its general
meeting today to agree to a convertible bonds issue that could
allow the software manufacturer to raise up to 500 million euros
by 2006, Handelsblatt in its Sunday edition said.

The corporate software provider, which incurred an operating loss
of 35.6 million euros in the first quarter of 2001, intends to
prepare for every possible eventuality following its drastic
profits warning in January and the subsequent collapse in its
share price.

Intershop's board is unconcerned about legal action taken by some
shareholders, alleging the company delayed its profits warning.
According to chief financial officer Wilfried Beeck, none of the
directors sold shares or enriched themselves in any way.


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


DAM STEEL: To Dismiss 289 Staffers
----------------------------------

Cogne Acciai Speciali Srl, the new Italian owner of steel
manufacturer DAM Steel Rt, said it would lay off 289 workers
starting June 24, according to Hungary AM's June 6 edition.

The laid-off workers will get their compensation regulated by law
and the Labor Center will offer them retraining courses.


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


RING!ROSA PRODUCTS: Sells Unit Without Notifying Receiver
---------------------------------------------------------

Software company Ring!Rosa Products NV has sold its subsidiary
Ring Service Center in France without informing its receivers, De
Telegraaf & World Reporter in its June 8 edition said. The
receivers have started an investigation into the transaction.

It is claimed that both the board of directors and the
supervisory board have not been informed of the transaction. The
receivers refuse to comment, pending the investigation.

Ring!Rosa, declared bankrupt on May, has been suspended on the
Amsterdam exchange since Friday.


===========
N O R W A Y
===========


ENITEL: Moody's Places Ratings on Downgrade Review
--------------------------------------------------

Credit ratings agency Moody's Investor Services has placed the
ratings of telecom group Enitel on review for a possible
downgrade, the agency said on Friday.

The ratings affected are senior implied rating at B3, senior
unsecured issuer rating at Caa1 and 250 million euros in 12.5%
senior notes due 2010 at Caa1.

Moody's is concerned about the departure of a number of senior
executives at Enitel and the recent announcement that it intends
to embark on a strategic review of the business.


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


HUTA KATOWICE: Banks Extend Credit Payment Deadline
---------------------------------------------------

A consortium of six banks, including Bank Slaski, BPH, Pekao S.A.
Bank Handlowy, PBK and Kredyt Bank have agreed to postpone the
payment of outstanding credit installments by Huta Katowice until
the end of June 2001, Poland AM in its June 7 edition said. The
banks gave the steel mill a 400-million zloty credit over two
years ago.

The mill has been in financial trouble after steelmaker Corus
withdrew from investment in Huta Katowice last year. It failed to
pay the interest on the outstanding credit.

Part of Huta Katowice's liabilities may be written off under a
new steel sector restructuring program.


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


BOLIDEN LIMITED: To Sell Chile Mines to Canadian Group
------------------------------------------------------

Metals and mining group Boliden Ltd will sell its interests in
two Chilean copper mines to Canadian mining group Falconbridge,
Reuters in its June 8 edition said.

The assets will be sold at a purchase price of $175 million, plus
cash balances of $2.1 million, less outstanding third party debt
obligations of $112.7 million.

The condition for the sale was that Falconbridge would
discontinue a lawsuit against Boliden. The Canadian group took
legal action after Boliden backed out to sell its interests in
the Lomas Bayas copper project and Fortuna de Cobre copper
deposits to Falconbridge.


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


SWISSAIR GROUP: Capital May Already Be Under Critical Level
-----------------------------------------------------------

The capital of Swissair Group AG may already have fallen below
the critical level of 438 million Swiss francs with Belgium's
Sabena and France's AOM-Air Liberte units posting monthly losses
of around 100 million, AFX News reported on Sunday.

If the company's capital reaches the critical mark, Swissair will
have to present a redevelopment plan. The company capital stood
at 877 million Swiss francs in 2000.

Last week, there had already been speculations regarding a
possible bankruptcy at the Zurich-based airline.


SWISSAIR GROUP: Slumps as ABN Amro Cuts Price Target
----------------------------------------------------

Troubled airline SAirGroup saw its shares slide 6.88% at 132
Swiss francs on Friday morning as transport team at ABN Amro
slashed its price target for the airline to just 70 Swiss francs
and repeated its sell advice, AFX News reported.

The cut in its price target on the airline is understood to
reflect ongoing concerns about the future of its French
operations AOM-Air Liberte, which may file for bankruptcy by June
23.


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


BALTIMORE TECHNOLOGIES: Now a Takeover Target
---------------------------------------------

Shares in electronic security company Baltimore Technologies were
down 5% in London to stg59p on Thursday, prompting brokers to
predict it will now be taken over, the Irish Independent's June 8
edition said.

This year alone, shares have collapsed from over 4 pounds in
January, with brokers seeing little sign of changing their
downward trend. The company's market capitalization has slipped
to 250 million sterling pound.

Davy Stockbrokers technology analyst Barry Dixon said that sector
rival Verisign or US security group Checkpoint might be
interested in Baltimore, having a cash horde of 86 million
sterling pounds.


BRITISH TELECOM: Faces Possible Pension Shortfall
-------------------------------------------------

British Telecom has to find an additional 1 billion pounds to
fill a hole in its pension scheme, according to Press
Association's June 11 report.

The group said its scheme faces a potential shortfall in the
future if increases in life expectancy continue. BT, however,
stresses that members of its pension scheme will not suffer as
measures are already in place to remedy the situation.


DANKA BUSINESS: Agrees With Bank on New Credit Facility Terms
-------------------------------------------------------------

Danka Business Systems PLC on Friday said it has reached an
agreement with the Steering Committee of its existing consortium
of banks on the principal terms of a new Credit Facility,
Business Wire reported. The company's existing banks will meet
tomorrow to discuss approval of the Credit Facility.

Debt reduction continues to be a principal focus of Danka
Business and they will continue to review all opportunities to
reduce its debt.


EIDOS PLC: Finds New Finance Chief
----------------------------------

Games company Eidos has appointed Woolworths' Stuart Cruickshank
as its new finance director, according to This Is London's June 7
edition.

The 47-year-old Cruickshank will join after the 52-million-pound
rights issue to stabilize the creator of Lara Croft.


GAMEPLAY PLC: Dives on Redundancy Plan
--------------------------------------

Shares in Gameplay plc fell 18.75% to 2.94 pence on Friday after
the games e-tailer said it would lay off most of its staff and
was still working on the sale of its businesses, Reuters
reported.

Gameplay did not say how many jobs would be cut, but at the end
of last month, the company had around 80 staff.

Gameplay also announced the 3.4 million pound sale of its Spanish
boxed games unit and its on-line gaming business CentroMail to
the Electronics Boutique Plc.


GAMEPLAY PLC: Sells Businesses for 3.4MM Pounds
-----------------------------------------------

Internet games retailer Gameplay has sold its Spanish boxed games
division and its CentroMail online gaming business to Electronics
Boutique for 3.4 million pounds, according to the Times in its
June 9 report.

The company sold Nordic and UK Boxed Games businesses, Gameplay
Sweden AB and Gameplay Ltd to their respective management teams.
It has incurred a pre-tax loss of 56.1 million pounds for the six
months to January.


HARLAND & WOLFF: Wins 23MM-Pound Lifeline
------------------------------------------

Shipbuilder Harland & Wolff won its appeal over an arbitration
claim of 23 million pounds, according to the Times' June 9
report.

The Court of Appeal in London ruled that American company Global
Marine should pay US$27 million and 3.3 million pounds as the
final installment payments for the building of two oil drilling
ships.

Global Marine had refused and said that it would appeal against
the decision, claiming that the ship was late and not up to
standard. Harland & Wolff denied this.

Furthermore, Harland and Wolff chief executive Brynjulv Mugaas
accused Global Marine of trying to bankrupt the business to
escape paying the separately disputed 133 million pounds. A
Global Marine spokesman declined to comment on the accusation.


MARKS & SPENCER: Pays Ex-Directors 2.7MM Pounds
-----------------------------------------------

Troubled retailer Marks & Spencer paid 2.74 million pounds in
severance payments to the five directors who left as part of a
management shake-up in September, according to the Times' report
on Saturday.

International retail head Guy McCracken got the biggest sum of
707,000 pounds, followed by former chief executive Peter Salsbury
with 609,000 pounds.

Managing director Roger Holmes also received 796,000 pounds for
the three months he was with the retail group.


RAILTRACK GROUP: Considers Alliance With Train Operators
--------------------------------------------------------

Railtrack Plc is considering for a tie-up with the privately-
owned train operating companies after Prime Minister Tony Blaire
ruled out to renationalize the rail operator, according to
Reuters in its June 9 report.

The report also noted it would cost the operators at least two
billion pounds to buy out Railtrack's shareholders.

Operating companies such as GNER, owned by Sea Containers Ltd,
are keen on closer links with Railtrack.


ROYAL DOULTON: Seeks Voluntary Redundancy
-----------------------------------------

Ceramics giant Royal Doulton is asking workers in the West
Midlands to consider voluntary redundancy as part of a review of
the business and slowdown in the world economy.

The company, which employs 3,000 people in Stoke-on-Trent, has
announced it is offering severance packages to its marketing,
sales and finance, as well as some skilled production staff. No
final figure on the total number of job losses had been set.

In February, the firm axed 45 posts with the closure of Holland
Studio Craft, and a further 93 jobs last month in its plants at
Baddeley Green, Longton and Burslem.

Royal Doulton recorded a 9.5 million pounds pre-tax loss in 2000,
compared to 29.6 million pounds in 1999.

                               **************

        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.

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
Christopher Beard at 301/951-6400.


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