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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

             Thursday, April 05, 2001, Vol. 2, No. 67


                            Headlines

* B E L G I U M *

SABENA SA: Expects to Break Even in 2002
SABENA SA: Financial Situation to Remain Difficult
SABENA SA: Prepares Survival Plan

* B U L G A R I A *

BALKAN AIRLINES: Goes Into Receivership

* C Z E C H   R E P U B L I C *

CESKE RADIOKOMINIKACE: Czech Cabinet to Discuss Privatization

* F R A N C E *

CAC SYSTEMES: Court Okays EADS Takeover

* G E R M A N Y *

CURASAN AG: Posts DM4.1 Million Loss
MET@BOX AG: To Sell Interzart AG

* H U N G A R Y *

KONZUMBANK RT: MFB to Sell Stake in Konzumbank

* I T A L Y *

ALITALIA: Posts Loss of 495 Billion Lire in 2000

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

COMDISCO FINANCE: Moody's Downgrades Ratings
KPN NV: Government to Probe Phone Tariffs, Leased Line Market

* P O R T U G A L *

JERONIMO MARTINS: Slides Despite Recovery Plan

* R U S S I A *

NTV: Gazprom Ousts Board Members of TV Network

* S W E D E N *

BOLIDEN LIMITED: Extends Sale Term to April 30

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

ANDRE & CIE: Singapore-Based Noble to Buy Asian Operations
CARRIER 1: Loss Widens to $43 Million
SAIRGROUP: French Airlines May Go Into Receivership

* U N I T E D   K I N G D O M *

LOFTUS ROAD: Administrators Seek Buyer
RAILTRACK GROUP: Prescott Okays Final Phase of Rail Link
RAILTRACK GROUP: Slides As Brokers Turn Negative


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


SABENA SA: Expects to Break Even in 2002
----------------------------------------

Belgian national airline Sabena expects to reach improved results
for 2001 and breakeven in 2002 or 2003, Reuters in its April 3
edition said.

Sabena's Chief Executive Officer Christoph Mueller said that the
airline would consider selling some of its airline-related
businesses at a good price. The businesses include Ground
Handling, Technics, Cargo Handling and Catering.

Earlier, Sabena reported a net loss for the 2000 full year of 325
million euros.


SABENA SA: Financial Situation to Remain Difficult
--------------------------------------------------

After its major shareholder SAirgroup confirmed a US$1.67 billion
net loss in 2000, Sabena Belgian World Airlines SA said it
expects moderate growth in 2001 in its commercial activities and
flight operations while its financial situation will remain
difficult.

Based on AFX's report yesterday, Sabena's objective is to
consolidate acquisitions and to put profitability before growth.

This means that the management shall give fundamental attention
on the implementation of a recovery plan in order to return to an
improved financial basis.


SABENA SA: Prepares Survival Plan
---------------------------------

National airline Sabena said it would layout a new business
proposal by the end of this month to ensure its survival, the
Wall Street Journal in its yesterday's report said. This move
came after co-owner Swissair threatened to cut stakes in loss-
making foreign airline companies.

Sabena said its 2000 loss of 325 million euros, which included
102 million euros in restructuring costs, was largely due to its
airline activities, although almost all its other activities had
disappointing results.

According to Sabena president and chief executive Christoph
Mueller, the management is working on a business plan that will
focus on improving profitability. The plan, which will be put
before the board and shareholders in late April, is to
consolidate acquisitions and put profitability before growth.


===============
B U L G A R I A
===============


BALKAN AIRLINES: Goes Into Receivership
---------------------------------------

Balkan Airlines has been grounded and placed in receivership,
Business Central Europe in its April 4 edition said.

Balkan's main creditor insurance company Bulstrad claims that the
airline owes them $11 million and hasn't paid a cent since 1998.

Isreal's Zeevi Holdings, which holds a majority stake in Balkan
Airlines, said it would take the Bulgarians to the United
Nations' arbitration court in Paris, claiming a $230 million in
compensation. Zeevi Holdings also claims the government broke its
promises to preserve Balkan's status as a national carrier and
gave false information in the privatization contract.

The government said Zeevi hasn't fulfilled its obligations under
the privatization contract when it failed to form an investment
plan.

The Sofia City court declared Bulgaria's loss-making national
carrier insolvent on March 12.


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


CESKE RADIOKOMINIKACE: Czech Cabinet to Discuss Privatization
-------------------------------------------------------------

The Czech government will discuss the privatization of the
country's second telecom group Ceske Radiokomunikace on Monday,
Reuter's April 3 edition said.

Investors have been closely following the sale of a 51% stake in
Ceske Radiokomunikace, which has turned sour amid a poor
environment in the sector worldwide. Last month, Tele Danmark and
U.S. company Crown Castle made a bid at around 600 crowns per
share, deeply below over 900 crowns on the open market.

The government decline to comment on the material due to be
discussed.


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


CAC SYSTEMES: Court Okays EADS Takeover
---------------------------------------

The Blois commercial court has authorized European Aeronautic,
Defence and Space (EADS) to buy shares representing 55% of the
capital of pilotless aeroplane company CAC Systemes, La Tribune &
World Reporter in its April 2 edition reported.

CAC Systemes, which has been in administration since October of
2000, generated a turnover of 7.76 million euros last year.


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


CURASAN AG: Posts DM4.1 Million Loss
------------------------------------

Curasan AG's loss before interest and taxes in 2000 was unchanged
from the previous year with DM4.1 million, Handelsblatt in its
April 2 edition said.

However, its sales rose to DM21.3 million from DM15.4 million a
year earlier. The sales in 2001 are expected to rise by 80% to
DM38 million.


MET@BOX AG: To Sell Interzart AG
--------------------------------

Met@box AG has decided to part with its financial involvement
with Interzart AG 3D Commerce, an April 3 press release from the
Frankfurt Stock Exchange reported.

The sale was part of the restructuring program announced last
week, which is to ensure the company concentrates on its core
products for interactive TV.

Met@box's chief operational officer Geerd-Ulrich-Ebeling has also
resigned from the supervisory board due to family reasons. It is
not planned to name a successor. Moreover, the company intends to
announce a Chief Financial Officer.


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


KONZUMBANK RT: MFB to Sell Stake in Konzumbank
----------------------------------------------

The Hungarian Development Bank Rt (MFB) will soon sell its entire
stake in loss-making Konzumbank Rt, Hungary AM in its April 2
report said.

MFB has injected Ft 5 billion into Konzumbank since an
unsuccessful attempt to sell it in 1998.


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


ALITALIA: Posts Loss of 495 Billion Lire in 2000
------------------------------------------------

Alitalia SpA reported a consolidated net loss of 495 billion lire
($225 million or 255.7 million euros), compared with a profit of
two billion lire a year earlier, the Wall Street Journal reported
on Tuesday. Its net debt soared to 1.467 trillion lire from 179
billion lire a year earlier.

High fuel costs and inefficiencies, linked to Alitalia's
inability to implement its original plan to shift all
international flights to Milan's Malpensa airport, were seen as
the two main factors behind the 2000 loss.

The poor results on the collapsed alliance with KLM Royal Dutch
Airlines were also blamed. Last year, KLM broke off talks with
the Italian national carrier because of disagreement about
Alitalia's privatization, as well as logistical difficulties at
Malpensa.


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


COMDISCO FINANCE: Moody's Downgrades Ratings
--------------------------------------------

Moody's Investors Service on April 3 has downgraded the ratings
of U.S.-based Comdisco, Inc. and its affiliate Comdisco Finance
B.V. The rating remains under review for possible further
downgrade.

The rating action results from Comdisco's sharply reduced
financial flexibility following its announcement that it has
hired advisors to assist it in exploring strategic alternatives
and that it has substantially drawn down its committed bank
facilities.

Moody's believe this announcement reflects increasing challenges
the company faces in executing its business plan, particularly in
its venture leasing portfolio. While the core equipment leasing
and continuity service businesses seem to have reasonable
business prospects, the distraction of the ventures business to
both the management team and the capital markets has been
difficult to overcome.

Given current market conditions, the rating agency said that
successfully completing a strategic transition could prove
challenging, and therefore it has left the long-term ratings on
review for possible further downgrade. In its review, Moody's
will focus on Comdisco's ability to execute its strategic plans
in a timely manner to best preserve its franchise and enterprise
value, and the company's ongoing ability to meet its debt
obligations given the reduction in financial flexibility cited
above.

Comdisco, Inc.'s Short Term rating was downgraded to Not-Prime
from Prime-2; Long Term Issuer to Ba2 from Baa2; Senior to Ba2
from Baa2; while its subordinated shelf rating has been
withdrawn. Comdisco Finance (Nederland) B.V.'s Short Term rating
was also downgraded to Not-Prime from Prime-2 and its Senior to
Ba2 from Baa2.

Comdisco, Inc., headquartered in Rosemont, Illinois, is a
technology services provider and technology equipment lessor. As
of December 31, 2000, the company reported total assets of $8.3
billion.


KPN NV: Government to Probe Phone Tariffs, Leased Line Market
-------------------------------------------------------------

The transport ministry will investigate Royal KPN NV's local and
regional telephone tariffs and the Dutch leased lines market, AFX
in its April 3 edition reported.

A primary area of concern is the prize squeeze in the local and
regional telephony markets. According to rival operators, the
price margin between what KPN charges other operators to send
local traffic over its network and what KPN charges for these
services on the retail market is especially small.

The ministry also expressed concern about the market for leased
line capacity, where prices are too high and delivery times are
too slow.



===============
P O R T U G A L
===============


JERONIMO MARTINS: Slides Despite Recovery Plan
----------------------------------------------

Loss-making retail and industrial holding Jeronimo Martins slid
over 5% on Monday, Namnews in its April 3 edition said.

Last week, the company announced a loss of 65 million euros for
2000. It unveiled a plan to put its businesses back on the rails,
including splitting off its industrial interests and a capital
call for 300 million euros.


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


NTV: Gazprom Ousts Board Members of TV Network
----------------------------------------------

Gazprom, which holds 46% of the shares in NTV, ousted the board
of Russia's only national independent television station and
installed allies to run the network, according to the Wall Street
Journal report on April 4.

The board of directors first fired the station's general
director, NTV newscaster Yevgeny Kiselyov, who since 1993 has
hosted an influential news program Sunday evenings, then was
replaced by U.S. investment banker of Russian descent, Boris
Jordan. The board also appointed Vladimir Kulistikov as NTV's new
chief editor in charge of day-to-day programming.

Gazprom said its conflict with NTV management is purely
commercial. According to the State-controlled gas giant, it
appointed Jordan to shore up company finances and find a
strategic investor to buy a stake in the company and pay off some
of its debts.

Media tycoon Vladimir Gusinsky, who controls NTV's parent company
Media-Most, has also sought a western investor for NTV but the
hunt has been hampered by harassment from authorities.


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


BOLIDEN LIMITED: Extends Sale Term to April 30
----------------------------------------------

Boliden Limited announced that the term of the letter of intent
between the mining group and its purchasers on the sale of its
interests in Compania Minera Lomas Bayas and Compania Minera
Boliden Westmin Chile Limitada has been extended to April 30,
Market News Publishing reported on Monday.

The extension will enable Noranda Inc. and Falconbridge Limited
to complete their due diligence and to complete their purchase
and sale agreement.


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


ANDRE & CIE: Singapore-Based Noble to Buy Asian Operations
----------------------------------------------------------

Main board-listed global supplier of industrial raw materials and
transport resources, Noble Group Limited, on April 3 announced
the signing of a Conditional Sale and Purchase Agreement with
Swiss-based Andre & Cie SA, a global trader of agricultural
commodities, PR Newswire reported.

Under the agreement, Noble will acquire Andre & Cie's Asian
commodity operations, comprising the entire issued share capital
of 16 companies within Andre & Cie, which is currently under
court protection.

Noble will acquire the companies for a nominal sum. In connection
with the agreement, Noble has issued a guarantee of approximately
US dollars 64 million (approx Singapore dollars 115 million) in
favor of the creditor banks of the 16 companies (Andre Asia
Companies) to support their ongoing, underlying operations.

The Andre Asia Companies are mainly involved in supplying
commodities such as grain, soya beans and soya meal. Operating in
Singapore, Australia, Japan, Indonesia, Thailand, India,
Pakistan, Myanmar, Vietnam and the People's Republic of China,
the 16 companies employ about 250 persons. In FY2000 alone, the
16 companies generated an aggregate turnover of over US dollars 1
billion (approximately Singapore dollars 1.8 billion). The Andre
Asia Companies will be operating under the brand, Noble Grain.

According to Noble Group Chairman Richard Elman, "This is a
unique opportunity for the Noble Group. The acquisition will
expand and complement Noble's existing range of commodities and
is in line with the Group's continuing expansion plans."

The agreement is subject to all requisite approvals (including,
if required, the approval of Noble's shareholders) being obtained
pursuant to the listing rules of the Singapore Exchange
Securities Trading Limited.

"We are keeping a careful watch on developments in demand and the
balance of supplies between producers and end-users. Should the
current outlook prevail, we believe Noble Grain should contribute
positively to our earnings for FY2001" Elman observed.

Noble Group recently announced sterling results for FY2000,
achieving its best ever performance in Noble's history. Revenues
jumped 51% to reach US dollars 1.2 billion (Singapore dollars 2.1
billion) while net profit set a Group record with US dollars 21.1
million (Singapore dollars 36.6 million), a 234% increase over
FY1999.

At year end 2000, the Group had over US dollars 80 million
(Singapore dollars 140 million) in cash balances available to the
Group while net asset value increased to its highest level ever
at US dollars 113 million (Singapore dollars 198 million) or
Singapore dollars 0.88 per share.


CARRIER 1: Loss Widens to $43 Million
-------------------------------------

Networks services company Carrier 1 said its 2000 loss before
interest, tax, depreciation and amortization was $43 million,
according to the Financial Times' April 3 report. It was wider
than originally reported at $35.5 million because it had to
increase charges for bad loans.

Meanwhile, chief financial officer Joachim Bauer will step down
after Carrier 1 messed up its results for the second time. He
said that last month, he wrongly included sales in the fourth
quarter that should have been booked in the first quarter of
2001.

Shares of Carrier 1 also fell 5% to 7.78 euro in early Neuer
Markt trade. Investors have been angered by the mistake in
presenting company accounts or failure in producing a set of
proper figures.


SAIRGROUP: French Airlines May Go Into Receivership
---------------------------------------------------

The call of SAirGroup head Marc Rochet for an extraordinary works
council meeting for today has heightened fears that the French
airlines AOM and Air Liberte will imminently go into
receivership, La Tribune & World Reporter in its April 2 edition
said.

Neither unions nor employees of the French groups are prepared to
accept a dismantling or amputation of their companies. If this
happens, unions and employees are preparing to file lawsuits with
a view to shedding light on the responsibility of shareholders.

When SAirGroup took a stake in AOM and Air Liberte, all were
losing money.



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


LOFTUS ROAD: Administrators Seek Buyer
--------------------------------------

The administrators of Loftus Road PLC, which has debts of up to
11 million sterling, are seeking a buyer for the company and its
Queens Park Rangers football and Wasps rugby union clubs,
according to an AFX report on April 3.

The administrators further said that they are looking for offers
that are well above the 15 to 20 million sterling mark.

Meanwhile, majority shareholder and chairman of Loftus Road Chris
Wright will continue to fund the west London club. He will quit
the club once new funding arrangements have been found.


RAILTRACK GROUP: Prescott Okays Final Phase of Rail Link
--------------------------------------------------------

Deputy Prime Minister John Prescott has given the go-ahead for
the second and final phase of the Channel Tunnel Rail Link
project that would provide a major boost to the regeneration of
East London, East Kent and the Thames Gateway, AFX in its
yesterday's edition said. The government, London & Continental
Railways (LCR) Ltd and Railtrack Group PLC signed the agreement.

Construction will commence as planned in July this year and no
extra government funding will be required.

Earlier this week, Railtrack got a badly needed 1.5 billion pound
cash advance from the government. Under the funding arrangement,
Railtrack has been forced to drop plans to build the second stage
of the Channel Tunnel rail link.


RAILTRACK GROUP: Slides As Brokers Turn Negative
------------------------------------------------

Shares in Railtrack Group PLC continued their downward course as
more brokers turned negative following a government funding of
1.5 billion sterling and news of further cost overruns, AFX
reported yesterday.

Railtrack was down 69-1/2 pence, or nearly 12%, at 500-1/2 when
UBS Warburg downgraded its stance from strong buy to hold, SG
Securities shifted from buy to hold, and while Williams de Broe
said sell.

Its stock closed down 117 pence at 570 after Railtrack revealed
the cost of the West Coast main line upgrade was estimated at 6.3
billion sterling.

The funding agreement further dented the sentiment. Railtrack has
agreed to appoint a government-approved non-executive director,
not to pay any exceptional or special dividends to shareholders
over the next five years, and to raise 250 million sterling of
preferred equity by March 31 next year. Railtrack also gave up
its option to build the second phase of the Channel Tunnel rail
link and reduce its involvement in new rail infrastructure
projects.



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


       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-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
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Copyright 2001.  All rights reserved.  ISSN 1529-2754.

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