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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

            Monday, August 27, 2001, Vol. 2, No. 167


                            Headlines

* B E L G I U M *

LERNOUT & HAUSPIE: To Launch Realspeak
PASEK: Files for Bankruptcy Protection
SABENA SA: Employees Flood Chief Muller With Questions
SABENA SA: Pilots Organization Proposes Strike Action

* C Z E C H   R E P U B L I C *

BILBO MOST: German Firm to Lease Meat Producer
TCHECOMALT GROUP: Appoints New Administrator

* F I N L A N D *

SONERA CORP.: Will Axe 1,000 Jobs

* F R A N C E *

CDTEL GROUP: Sells Assets to Jet Multimedia
MOULINEX SA: Will Retain 100 Jobs in France
VALEO SA: To Divest Truck Signal Lighting Operations

* G E R M A N Y *

BANKGESELLSCHAFT BERLIN: Investors Assess Berlin Bank
BROKAT AG: Metavante to Buy Brokat's Brokerage Assets
BROKAT AG: Shares Rise 25% Over Asset Sale
DAIMLERCHRYSLER: To Pay $153,000 Fine for Safety Violation
EM.TV: Announces Management Restructuring
EM.TV: Munich Court Dismisses Suit
MET@BOX AG: Investors Withdraw Lifeline
PRODACTA AG: More Optimistic About Future

* S P A I N *

GESCARTERA: Religious Groups Invested Pta1.885BB in Gescartera

* U N I T E D   K I N G D O M *

EQUITABLE LIFE: Confronts Mounting Complaints
EQUITABLE LIFE: To Cap 2.6-BB-Pound Crisis
INDEPENDENT INSURANCE: Former CEO Declares Bankruptcy
MARCONI PLC: To Cut 3,000 Jobs Worldwide
POLAROID CORPORATION: S&P Lowers Bond Rating to 'D'


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


LERNOUT & HAUSPIE: To Launch Realspeak
--------------------------------------

Speech technology company Lernout & Hauspie Speech Products will
launch RealSpeak Compact SDK on the market, the Thursday edition
of the Financial Times said.

The new software package, which converts text to spoken language
and is specifically meant for mobile applications, was developed
for mobile applications such as personal digital assistants,
personal digital terminals and palmtop computers.

Lernout & Hauspie has put its assets for sale after seeking
bankruptcy protection following an accounting scandal.


PASEK: Files for Bankruptcy Protection
--------------------------------------

Pasek on August 16 filed with the Dinant commercial court a
request for "concordat" bankruptcy protection, the L'Echo
reported on August 21.

The Belgian heat-resistant products manufacturer, which employs
106 staff, is currently facing liquidity problems caused mainly
by increasing competition in the sector.

The Dinant court will announce its decision on September 11.


SABENA SA: Employees Flood Chief Muller With Questions
------------------------------------------------------

Sabena chairman Christoph Muller was swamped with questions from
around a hundred employees of the Belgian air operator during a
meeting between the management and unions on Wednesday, the Le
Soir reported.

The questions ranged from whether the chairman had evaluated the
profitability of the routes Sabena was cutting, who would by the
group's cargo subsidiary and whether the 17 billion Belgian
francs recapitalization was sufficient.

Unions did not feel they received the answers they were looking
for. Although they admitted it was not easy for the Sabena
chairman in such a situation.

The pilots are still threatening strike action, the newspaper
added.


SABENA SA: Pilots Organization Proposes Strike Action
-----------------------------------------------------

The professional pilots' organization Be-CA at Sabena SA has
proposed a strike to protest a restructuring plan, the Financial
Times reported on Thursday.

The restructuring plan calls for laying off 1,421 workers,
including over 200 pilots.

Early this month, flights were disrupted when ground workers went
on strike because of fears of planned layoffs by the troubled
Belgian airline.


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


BILBO MOST: German Firm to Lease Meat Producer
----------------------------------------------

The creditors' committee of Bilbo Most has decided to rent the
bankrupt meat producer to Euroex Praha, a partner of German
company Flaischwerke Beck GmbH Kaiserslautern, according to the
Wednesday edition of Czech News Agency & World Reporter

Bilbo's other potential buyer is Czech-French company Sofil.

The committee stipulated the conditions regarding financial
guarantees, which the future lessee will have to present by
September 30. If the company fails to do so, bankruptcy assets
administrator Zdenek Ruzek can withdraw from the contract.

If Fleischwerke Beck meets the lease conditions and if it proves
it can pay the purchase price, it should become Bilbo's new owner
within a year.

Bilbo sustained a loss of Kc42 million last year.


TCHECOMALT GROUP: Appoints New Administrator
--------------------------------------------

The Brno Regional Court has appointed Bronislav Kriz as the new
bankruptcy assets administrator of Potravinarsky holding,
replacing Pavel Tomcala, the August 22 edition of Czech News
Agency & World Reporter said.

Tomcala, however, remains bankruptcy assets administrator at the
parent a.s. Tchecomalt Group, which however prepared the sale of
shares in the group's firms together with subsidiary
Potravinarsky holding.

The removal of Tomcala came at the moment when discussions with
suitors for the assets of Tchecomalt Group were at its peak. The
winners of a tender for the group's assets are Malterie Soufflet
of France, Rolnicke druzstvo Bezno, Agropol Group and AGF Trading
of the Agrofert Group.

The regional commercial court declared Tchecomalt Group and the
Potravinarsky holding bankrupt last year due to excessive debts
and lack of finances after the collapse of Investicni a Postovni
banka, which had provided the funds.


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


SONERA CORP.: Will Axe 1,000 Jobs
---------------------------------

Cash-strapped Finnish telecoms operator Sonera plans to eliminate
about 1,000 employees to cut costs, Dow Jones Newswires reported
on Thursday.

The layoffs will come in the corporate administration, its Sonera
Services, Sonera Wireless Ventures and Telecom businesses. The
cuts will not affect its SmartTrust, Zed or Info Communications
units, the company said.

Sonera expects the cuts to trim debt and reduce operating costs
by 50 to 60 million euros. The job cuts are also part of its
response to the decline in the economic outlook of the industry.

Earlier Thursday, Moody's lowered the company's short-term debt
rating to Prime-3 from Prime-2.

Sonera last month posted poor results in both the second quarter
and for the half year. Pre-tax profit in the three months to June
fell 40.6% to 560 million euros, compared with last year, and it
reported a six-month pretax loss of 28 million euros.


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


CDTEL GROUP: Sells Assets to Jet Multimedia
-------------------------------------------

French group Jet Multimedia will acquire the assets of online
services development and hosting firm Cdtel at an undisclosed
amount, the August 22 edition of Les Echos said.

Cdtel, which is in receivership, manages over 2,000 Internet
sites and Minitel services on behalf of more than 500 companies.


MOULINEX SA: Will Retain 100 Jobs in France
-------------------------------------------

After a meeting with staff representatives, the Moulinex
management has confirmed that it would retain about 100 jobs at
its Alencon factory in France, and that it wants to re-use the
site at Cormelles-Le-Royal, AFX-Europe reported on Thursday.

The unions said the measures are not enough, saying they still
disagree with the management's restructuring plan itself.

The works committee will meet again on September 6, when it is
due to give its opinion on the restructuring.


VALEO SA: To Divest Truck Signal Lighting Operations
----------------------------------------------------

Auto-parts maker Valeo SA plans to sell its truck signal lighting
operations as part of a wider plan to focus on its core
businesses, the Thursday edition of Dow Jones Newswires said.

The planned divestiture is part of Valeo's strategy, announced at
its Annual General Meeting in May, aimed at re-focusing the group
on its core businesses.

The Lighting Systems unit, based in Venissieux, France, posted
revenues of 32 million euros in 2000 and employs 2,000 people.

Valeo has 162 plants, 49 R&D centers, 10 distribution centers and
employs 78,000 people in 25 countries worldwide.


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


BANKGESELLSCHAFT BERLIN: Investors Assess Berlin Bank
-----------------------------------------------------

Bankgesellschaft Berlin said on Thursday more than 20 investors
are currently assessing whether to submit an offer to purchase
the bank to the State of Berlin, Bankgesellschaft's majority.

Bankgesellschaft will make all relevant documentation available
to interested parties. However, most investors are not interested
in the beleaguered Berlin bank as a whole, but only in sub-
divisions in Germany and abroad. One exception is American banker
J. Christopher Flowers.

The bank attributed its loss to bad property loans and dealings
in real-estate funds, causing its equity capital to fall below
the statutory ratio of 8%.


BROKAT AG: Metavante to Buy Brokat's Brokerage Assets
-----------------------------------------------------

Metavante Corp. has agreed to acquire the North American Internet
banking and brokerage units of global software leader Brokat
Technologies for $19.5 million in cash and the assumption of
certain liabilities, PR Newswire reported on Thursday.

The transaction is subject to regulatory approval and other
customary conditions. It is expected to close in the late third
quarter and early fourth quarter.

"The divestiture of our U.S.-based financial applications
business reflects a concerted effort to re-focus Brokat on our
core geographic markets and strengthen our balance sheet," Brokat
AG's chief financial officer Michael Janssen said.

Last year, Brokat increased its global presence by acquiring
three U.S.-based companies: Blaze Software, Inc. (rules
management software), GemStone Systems, Inc. (enterprise
application servers), and Automated Financial Systems, Inc.
(brokerage services).


BROKAT AG: Shares Rise 25% Over Asset Sale
------------------------------------------

Software maker Brokat was the biggest gainer on the Neuer Markt
on Friday when its shares jumped 25% to 1.97 euros, after the
company announced the sale of U.S. assets and the departure of
its chief executive, the Financial Times reported.

Brokat, whose stock has plunged 90% this year, has agreed to sell
two U.S. units and focus on e-finance in Europe. The software
maker would sell its mobile business for 42 million euros to
eOneGlobal, which will provide Brokat with an additional 15
million euros to cover running costs until completion of the
deal. It would also offload its U.S. financial applications
division for 21.3 million euros to Metavante Corp.

Chief executive Stefan Roever will leave and be replaced by
finance chief Michael Janssen.


DAIMLERCHRYSLER: To Pay $153,000 Fine for Safety Violation
----------------------------------------------------------

DaimlerChrysler AG has agreed to pay a $153,000 fine for safety
violations found at its Jeep plant, following the death of a
machine repairman last year, according to Dow Jones Newswires'
Thursday report.

Lazaro Fuentes Sr. died when a conveyer line suddenly started as
he made repairs on a nearby robot. Fuentes was pulled into the
system and crushed.

Inspectors at Occupational Safety and Health Administration, or
OSHA, said faulty wiring and poor implementation of machinery-
shutdown procedures contributed to the May 2000 accident.

OSHA has cited the factory for 130 safety violations since the
former Chrysler Corp. acquired the plant in 1987.


EM.TV: Announces Management Restructuring
-----------------------------------------

Troubled media rights group EM.TV Merchandising AG recently went
through a management shake-up, Handelsblatt in its August 21
edition said.

Chief financial officer Rolf Rickmeyer is leaving the company,
and would be replaced by Marius Schwarz, the former CFO of cinema
chain Cinemaxx, which is also in financial difficulties.

EM.TV also announced that its new major shareholder Werner
Klatten would take up the chief executive position in September.

Rickmeyer took up his CFO position only in November last year.
His task was to restructure the group after it landed itself in
financial difficulties as a result of an unsuccessful takeover
policy.

EM.TV Merchandising is still in negotiations with prospective
buyers for some of its shareholdings. Its shares rose by 16% to
3.03 euros on Tuesday on the news that Rolf Rickmeyer was
resigning.


EM.TV: Munich Court Dismisses Suit
----------------------------------

The lower district court of Munich on Thursday has dismissed a
suit by a private shareholder of troubled media-rights group
EM.TV & Merchandising AG, Handelsblatt reported.

The plaintiff, who alleged that the company and two of its former
top managers hid information about the company's financial
situation from investors, lodged a claim for 5,000 marks in
damages.

However, the court ruled that the complaint was unfounded,
arguing that the shareholder must have been aware of the risks
involved when investing on the Neuer Market.

The shareholder intends to appeal the ruling.

Several hundred investors have filed suits for damages against
EM.TV after complaints of mismanagement and untimely disclosure
that led to a plunging share price and losses of billions of
euros for shareholders.


MET@BOX AG: Investors Withdraw Lifeline
---------------------------------------

Insolvent set-top box manufacturer Metabox AG, according to the
Thursday edition of the Financial Times, will not receive a
capital injection after an unnamed group of investors withdrew
its promise to invest 1 million euros in the company.

The payment was supposed to have been made by July 31. It was
postponed for banking reasons.

Insolvency administrator Michael Graaff will dispute the
investors' ability to dissolve the contract in court.


PRODACTA AG: More Optimistic About Future
-----------------------------------------

IT service provider Prodacta AG believes that its restructuring
plans have a good chance of recovering with a new management team
and with the support from its provisional insolvency
administrator, Frankfurter Allgemeine Zeitung in its August 22
edition said.

The supervisory board has earlier appointed Erwin Leonhardi as
management board spokesman to replace Manfred Metzger-Buschor.

Prodacta filed for insolvency proceedings on August 2, following
the failure of negotiations with shareholders and potential
investors. It reduced losses to 9.2 million marks in the first
half of 2001, while turnover fell 16% to 14.3 million marks.


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


GESCARTERA: Religious Groups Invested Pta1.885BB in Gescartera
--------------------------------------------------------------

More than 30 religious groups have invested Pta1.885 billion in
the Spanish brokerage Gescartera, which was placed in
administration in early June, the August 22 edition of El Mundo &
World Reporter said.

Organizacion Franciscana de Cantabria, an order of Franciscan
monks based in the Cantabria region, had invested nearly Pta25
million with the company. Debtors as well as creditors are
listed, and the priest of Castille de Garcimunoz is shown to owe
Pta447 million.

The revelation of the significant investment by religious bodies
in Gescartera comes less than a month before the start of
negotiations between the economy ministry and the Spanish
Episcopal conference over alternative methods of financing the
church.


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


EQUITABLE LIFE: Confronts Mounting Complaints
---------------------------------------------

Equitable Life chairman Vanni Treves conceded last week that the
mutual life assurer had received many complaints from
policyholders, the Financial Times reported on Friday.

The current number of complaints, including mis-selling claims,
is believed to be running at slightly under 2,000.

In recent weeks, some financial advisers are known to have
stepped up searches for evidence of mis-selling at Equitable in
an attempt to counter the impact of recent cuts in bonuses.

Equitable was forced to close business on December after the
House of Lords ruled that its decision to cut pension bonuses to
holders of guaranteed pension policies was illegal. The company
is currently preparing to publish details of its compromise
scheme aimed at stabilizing its troubled finances.


EQUITABLE LIFE: To Cap 2.6-BB-Pound Crisis
------------------------------------------

Equitable Life is optimistic that a deal will be struck to seal
the company's 2.6-billion-pound black hole within the next four
weeks, the Scotsman newspaper reported on Friday.

Policyholder action group EMAG chairman Paul Braithwaite said the
meeting between Equitable's board and the groups on Wednesday had
been a frank and no holds barred discussion about proposals to
cap the society's massive financial liabilities.

The proposed compromise deal will be published in mid September.
Neither Equitable nor the action groups would comment on the
detail.


INDEPENDENT INSURANCE: Former CEO Declares Bankruptcy
------------------------------------------------------

Independent Insurance founder and former chief executive Michael
Bright has sold his Jaguar E-type car and had to sell his family
home in Kent and a flat in Wapping after he has declared himself
bankrupt, the Independent News reported on Friday.

Bright is now legally declared as being unable to pay his debts.
He has filed for bankruptcy in the High Court earlier this month.

His main creditor, HSBC Republic Bank, had been suing Independent
Insurance's chief over repayment of a 4.28-million-pound loan,
along with daily interest of 850 pounds. The bank has now dropped
the case.

Aside from his UK properties, he also owns a holiday residence in
Spain and shares in various companies.

The insurance company has been in the hands of provisional
liquidators PricewaterhouseCoopers since June. Its collapse is
the subject of investigations by the Serious Fraud Office and the
Financial Services Authority.


MARCONI PLC: To Cut 3,000 Jobs Worldwide
----------------------------------------

Marconi, UK's largest telecoms equipment manufacturer, will cut
3,000 jobs worldwide, or 6% of its workforce, the August 22
edition of VNU Newswire & World Reporter said.

According to reports, Marconi's senior management is concerned
that the company does not have the best mix of skills in its
existing workforce to take advantage of growth in the market.

Marconi, which has 55,000 workers in 16 manufacturing sites
worldwide, has refused to comment either on the job losses or the
possibility that it would issue a profits warning.

Telecoms manufacturers Lucent and Cisco in the US, Canada's
Nortel, and Alcatel in France have already warned of slowing
sales over the past few months due to a slowdown in orders from
telecoms operators.


POLAROID CORPORATION: S&P Lowers Bond Rating to 'D'
---------------------------------------------------

Standard & Poor's on August 16 has cut the bond rating of
Polaroid Corp, the biggest maker of instant cameras and film, to
the lowest level.

The downgrade follows Polaroid's failure to make a scheduled
interest payment on August 15.

Polaroid remains in default on two other unsecured bond issues
and Standard & Poor's lowered its ratings on those issues, as
well as the corporate credit rating on the company, to 'D' on
July 17.

Polaroid continues to operate under a temporary waiver of
covenant violations under its bank facility.

Polaroid's regional headquarters in Europe is based in UK. It has
other sites in France, Germany and the Netherlands.

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

       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. Lourdes Reyes, 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
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