/raid1/www/Hosts/bankrupt/TCREUR_Public/010618.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

              Monday, June 18, 2001, Vol. 2, No. 118


                            Headlines

* B E L G I U M *

CUSTOM SILICON:  Proposes Restructuring Plan to Creditors
CUSTOM SILICON: Presents Recovery and Payment Plan
PANTOCHIM:  Creditors Request Liquidation
SABENA SA:  To Discuss Business Plan on Monday
SPECTOR PHOTO:  Reveals Positive Impact on Restructuring

* F R A N C E *

ONE.TEL FRANCE:  Goes Into Receivership

* G E R M A N Y *

DAIMLERCHRYSLER AG: Appeals Court Rules in Favor of Executives

* I T A L Y *

FREEDOMLAND ITN:  Two Investors End Talks on Freedomland

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

KPN NV:  KPN to Offload Mobile Ventures

* R U S S I A *

MEDIA-MOST:  Ex-chief of Finances Faces New Charge

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

SWISSAIR GROUP:  Swissair Plunges as Potential Payout Looms

* U N I T E D   K I N G D O M *

BRITISH TELECOM:  Decision Day for BT Investors
RAILTRACK GROUP:  Railtrack Director Quits


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


CUSTOM SILICON:  Proposes Restructuring Plan to Creditors
---------------------------------------------------------

The following press release was distributed by Nasdaq Europe on
June 14: Custom Silicon Configuration Services  has filed its
restructuring plan it proposes to the creditors and the Court.
The full text is available on our website www.cs2.be under the
division, Press Releases & Financial Results, both in Dutch and
English.

The company holds an Extraordinary General Meeting on Friday,
June 15th, to seek the approval from the shareholders on issuing
convertible bonds and warrants as proposed in the plan.  Details
can be retrieved on our website.

Wednesday, June 20th, the restructuring plan will be proposed to
our creditors and the Court.

A double majority of both quantity and amount of claims have to
be reached.

Yves de Poorter, C.E.O. said : A sufficient quorum for the
Extraordinary General Meeting have deposited their shares and
first indications let us believe that both shareholders and
creditors will vote positively on the plan.


CUSTOM SILICON: Presents Recovery and Payment Plan
--------------------------------------------------

Limited liability company Custom Silicon Configuration Services
(CS2) presented its English-language Recovery and Payment Plan on
June 13, 2001 to Nasdaq Europe. The company had been suspended
from trade on Nasdaq Europe on Wednesday because its recovery
plan had not yet been translated into English.

CEO Yves de Poorter, acting in accordance with a decision by the
company's board of directors on June 9, 2001, had lodged an
application at the Registry of the Brussels Commercial Court in
December of last year for obtaining a judicial agreement.  The
court on January 5 granted the company a temporary suspension of
payment until the date on which a verdict is delivered on its
request that permanent suspension be granted.

In total, CS2 has due debts of 28,750,541 EUR (1,159,793,949
BEF), of which 24,836,959 EUR (1,001,920,361 BEF) are ordinary
debts and 3,913,582 EUR (157,873,506 BEF) preferential debts.

With the exception of staff, who are being paid off at a rate of
100%, i.e. an amount of 25,863 EUR (1,043.311 BEF), the company
is offering creditors the possibility to choose to covert their
claim into convertible obligations instead of choosing to have
their claim paid at a rate of 12.5 % on December 20, 2001 and
12.5% on June 20, 2002 without interest.

It is also being proposed to accepted creditors, whose total
claim is smaller than 2,500 EUR, that they have this debt paid at
a rate of 60% on September 30, 2001 (excluding provisionally
accepted debt claims for 1 EUR or 1 BEF). These creditors have
the possibility of converting their debt claim into a convertible
obligation.

The proposal will be binding on all creditors involved if the
court approves it. The court may only approve the plan if more
than half the creditors - who have declared their debt claim,
taken part in the vote and, in terms of value, represent more
than half the debt claims present - give their assent.

Creditors who fall within the ambit of article 30 of the Judicial
Agreement need to give their individual agreement to the proposal
set out above. If they do not give this agreement, they will, at
the latest upon expiry of the 18-month period from when the
recovery plan is approved, have their debt claim paid back in
full and, moreover, have the possibility under this scenario of
receiving interest payments.

The issuing of convertible obligations and warrants decided by
the general assembly will therefore be followed by a formal offer
to creditors with a view to them taking up the convertible
obligations.  Only in accordance with creditor take-up will the
transition be made to fixing the execution of the convertible
obligation issue.

Upon completion of the issue, the transition will also be made to
the free award of warrants to shareholders. The warrants protect
shareholders primarily against any dilution in their voting
entitlements.

Creditors may vote for or against the plan. When voting takes
place, however, they are not obliged to notify the Company of
their choice in relation to the repayment possibilities.

This applies to all creditors, irrespective of whether they
support the current plan, lodge a debt claim declaration, orare
the holders of a contested or accepted debt claim.

As far as contested claims are concerned, the amount of the debt
claim to be converted or, as the case may be, partially paid is
determined in accordance with the judicial or arbitral judgement
pronounced in the final instance.


PANTOCHIM:  Creditors Request Liquidation
-----------------------------------------

The creditors of the Belgian chemicals company Pantochim had made
a request for liquidation to the commercial court at Charleroi,
La Libre Belgigue & World Reporter said on Tuesday. The court is
due to rule on the request and has scheduled its next hearing on
June 14.

The European Commission has announced that it does not intend to
rush the acquisition of Pantochim by German chemicals giant BASF
AG. It has until August to rule whether the takeover will go
ahead.


SABENA SA:  To Discuss Business Plan on Monday
----------------------------------------------

Christoph Mueller the chief executive of Sabena Airlines is
expected to present his business plan to shareholders, the
Belgian government and SAirgroup AG, at a board meeting on
Monday, reported Bert Cornelis a spokesman for privatization
minister Rik Daems, AFX reported on Thursday.

Sabena needs a further cash injection of 400 million euros, as
the 250 million euro capital hike financed by shareholders will
begin to run out in September, because Sabena's two banks have
refused to renew credit lines.

The company's spokesman Wilfried Remans refused to comment on the
business plan, saying an announcement will be made when it is
ready to be presented to the press, after it has been announced
to employees.


SPECTOR PHOTO:  Reveals Positive Impact on Restructuring
--------------------------------------------------------

Spector Photo Group NV said its first four-month results show
that last year's operational restructuring is having a positive
impact, AFX News reported on Wednesday.

The comments accompanied announcement of an operating loss of
6.66 million euros, compared to 11 million euros last year, and
follows divestment of the retail network of German unit Photo
Porst, the company said.

The operating profit in the first four months stays negative due
to the seasonal nature of Spector's activities. Various options
are still being considered for the photo finishing laboratories
of the Photo Porst unit, the company said.

Excluding these photo-finishing labs from the four-month results
would have positively impacted the operating result by 3.5
million euros.

Spector operates photographic laboratories, which develop films
and make photographic prints and enlargements both for the trade
and the general public.


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


ONE.TEL FRANCE:  Goes Into Receivership
---------------------------------------

The French subsidiary of One.Tel went into receivership on
Tuesday after the suspension of financial support from the
Australian parent to all the European subsidiaries, Les Echos
reported in its June 13 edition.

One.Tel France revealed a pre-tax profit of 17 million euros in
the second half of 2000, said it would continue to offer
services. Its suppliers are Siris and WorldCom.

One.Tel France said negotiations with various companies are
underway with a view to a takeover.

One Tel Ltd. provides telecommunications services that include
GSM mobile, national and international long distance calls,
Internet services and phone cards. The Group operates in seven
countries in four regions, which are Europe, the United States,
South East Asia and Australia. It provides Internet services
through its associated Internet Company, One.Net.


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


DAIMLERCHRYSLER AG: Appeals Court Rules in Favor of Executives
--------------------------------------------------------------

A German appeals court ruled that DaimlerChrysler senior
executives could continue to get stock options, if the company's
shares appreciate, a company press release said on Thursday.

Shareholders had approved the stock option plan by a 97-percent
margin. Under it, company shares must appreciate by 20 percent
for executives to exercise their options.

However, a small shareholder group had argued the plan threatened
to undercut the value of the company's shares. On Wednesday, a
German appeals court dismissed the group's claim.


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


FREEDOMLAND ITN:  Two Investors End Talks on Freedomland
--------------------------------------------------------

Onetone and Urbano Cairo, two potential investors of Freedomland,
said on Thursday they had ended talks on buying a 29% stake in
the Italian Internet-via-TV company, Reuters reported in its June
14, edition.

The investment company of financial Marco Benatti, Onetone, led a
bidding group that agreed in April to acquire part of a stake
belonging to Vigilio Degiovanni, the Freedomland founder who
stepped down as chairman after an investigation into alleged
false accounting.

The company and Degiovanni denied wrongdoing, but independent
managers brought in to settle the company's future and began a
search for news shareholders.

Onetone, and Urbano Cairo said in a statement that while they
valued Freedomland's efforts to create Italy's first interactive
TV unit, they would not proceed with talks that followed the
expiry on May 26 of a deadline for authorization of share
transfer.


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


KPN NV:  KPN to Offload Mobile Ventures
---------------------------------------

KPN is expected to announce the sale of its mobile businesses in
Germany and Belgium as the company seeks to accelerate its debt-
reduction program, according to Het Financieele Dagblad and CIT
Online on Thursday, citing unnamed sources close to the company.

One potential buyer is France Telecom's mobile subsidiary Orange,
in a possible cash and stock transaction, but did not suggest a
valuation. KPN is keen to reduce its debt that presently stands
at 23.3 billion euros.

The news comes after KPN announced that it is to launch a rights
issue with the aim of increasing capital. The issue could net as
much as 5.5 billion euros for the company, which has presently
confirmed that it is in negotiations with the Dutch government
about the possibility of it taking over additional KPN shares.
The government still holds 35% stake in KPN.



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


MEDIA-MOST:  Ex-chief of Finances Faces New Charge
--------------------------------------------------

The Russian Prosecutor's General Office has brought a new charge
against Anton Tikhonov the former chief of Media Most financial
department. He had been under investigation and kept in custody
since January 16 on charges connected to the case of the head of
Media Most Holding Vladimir Gusinsky.

Spokeswoman Natalia Veshnyakova told Itar-Tass on Thursday that
Tikhonov, who had been charged with fraud deals, was facing a new
charge now of money laundering and use of false documents.


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


SWISSAIR GROUP:  Swissair Plunges as Potential Payout Looms
-----------------------------------------------------------

Swissair Group shares plunges as investors sold on news that the
firm could face a payout of 765 million to one billion Swiss
francs, AFX said on Thursday.

Sabena Belgian World Airlines SA will reveal on Monday a business
plan that is expected to ask for 300 million Swiss francs each
from its two major shareholders, Swissair and the Belgian
government.

The same shareholders had already provided 375 million Swiss
francs as capital injection to Sabena, but these funds are
expected to run dry in September, say sources close to the
company.

AOM-Air Liberte is expected to declare bankruptcy sometime in the
next few days. The bankruptcy could cost Swissair, which owns
49.5% of the French carrier, some 700 million Swiss francs,
reported the daily Neue Zuercher Zeitung on Thursday.

Swissair has promised that the company was prepared to provide
465 million Swiss francs in capital to AOM-Air Liberte, if
another investor can be found to co-finance a rescue operation.


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


BRITISH TELECOM:  Decision Day for BT Investors
-----------------------------------------------

British Telecom's army of private investors is making a final
decision on whether to save the debt-laden group, Press
Association said on Friday.

The company has offered shareholders heavily discounted shares in
an attempt to raise 5.9 billion pounds towards boosting its
balance sheet.

The deadline for the return of acceptance forms passes at 9.30 am
on June 15, with unsold shares set to be snapped up this week by
big City banks.


RAILTRACK GROUP:  Railtrack Director Quits
------------------------------------------

Railtrack announced in its company press release on Thursday that
Simon Murray, Director of Major Projects and Investment, would be
leaving the company by mutual agreement. Simon will step down
from the board with immediate effect.

Simon Murray joined Railtrack in 1998 to oversee the construction
of the Channel Tunnel Rail Link and the company's investment
projects. During his period with the business Simon has been
responsible for the delivery of major investment projects,
including surfacing some difficult issues on the West Coast Main
Line and Thameslink 2000 projects.

Following the establishment of the Enhancement and Major Projects
Board, Chief Executive Steve Marshall will directly oversee the
West Coast Main Line project, with General Manager Tony Fletcher
reporting to him. In addition, Robbie Burns, Investment Director,
who recently joined Railtrack from The Royal Engineers, will be
responsible for the company's other construction projects, also
reporting to Steve. Both Tony Fletcher and Robbie Burns will join
the Enhancements and Major Projects board.

Commenting on Simon Murray's departure Chief Executive Steve
Marshall said; "Simon built a strong team of project managers
within Railtrack and also established partnerships with the best
programme managers from around the world. The requirements of the
role have now moved on and he leaves the business much better
able to deliver investment on the railway. We wish him well in
the future ".

Simon Murray said of his departure; "I have very much enjoyed my
time working with Railtrack. The major projects team has achieved
a lot, despite some enormous challenges and I believe that the
timing is now right for me to leave Railtrack for a new
challenge."


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

       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,
and Ma. Cristina D. Pernites, Editors.

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

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