/raid1/www/Hosts/bankrupt/TCREUR_Public/010702.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, July 02, 2001, Vol. 2, No. 128


                            Headlines

* B E L G I U M *

REAL SOFTWARE: Sells 51% of Falcon Software
SABENA SA: Swissair Chief Claims Progress
SABENA SA: Swissair Chief Meets Sabena's Unions

* C Z E C H   R E P U B L I C *

KOMERCNI BANKA: Czech Bank to Divert Komercni Payment Off Market

* F I N L A N D *

EQ ONLINE: Chief Rutanen Resigns
EQ ONLINE: To Wind Down German Unit

* G E R M A N Y *

DAIMLERCHRYSLER: Truck Unit to Lay Off Workers
DEUTSCHE TELEKOM: To Sell Cable Networks
KABEL: Authorizes Temporary Cessation of Payments
PIXELPARK AG: To Cut 300 Jobs

* I T A L Y *

A.C. FIORENTINA: Denies Bankruptcy Petition
A.C. FIORENTINA: Files for Bankruptcy
ALITALIA-LINEE: Deal Does Not Herald Further Tie-Up
EPLANET SPA: Suspends Trading, Pending Statement

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

KPN NV: Belgacom Merger to Ease Debt Problem
KPN NV: Sells Vodafone Shares

* P O L A N D *

ELEKTRIM SA: Vivendi to Win Battle for PTC

* S P A I N *

JAZZTEL PLC: Cuts Investment Plans

* S W E D E N *

FRAMFAB AB: Projects Profitability in Fourth Quarter

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

SWISSAIR GROUP: Belgian Government Readies Legal Case

* U N I T E D   K I N G D O M *

BARINGS: Coopers & Lybrand Settles Claim
BRITISH TELECOM: Commission Okays Vodafone-Airtel Deal
INDEPENDENT INSURANCE: Members Face Probe From ICA
REDSTONE TELECOM: Faces Threat From Shareholders
REDSTONE TELECOM: Proposes Change of Name
REDSTONE TELECOM: Sets Meeting on July 20
SCOOT.COM: Seat Not Interested in Scoot
SCOTIA HOLDINGS: In Talks to Sell Foscan Drug
WIGGINS GROUP: Blackstone Faces JDS Inquiry


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


REAL SOFTWARE: Sells 51% of Falcon Software
-------------------------------------------

Real Software SA said on Thursday it has sold its 51% stake in
Falcon Software back to Falcon's management. The software
distributor, which bought the stake in June 1998, said the move
was part of a strategic restructuring plan.

The product offering of Falcon Software, Real Software said, did
not belong to the strategic assets of the company anymore and
doesn't create enough added value within the new strategy.

A failed U.S. acquisition and huge outstanding debts brought Real
Software to the verge of bankruptcy last year.


SABENA SA: Swissair Chief Claims Progress
-----------------------------------------

Swissair chief executive Mario Corti has reached an agreement
with the Belgian government over restricting his company's stake
in Belgian carrier Sabena, according to the Financial Times'
Thursday report.

Although Swissair has promised to raise its shareholding in
Sabena from 49.5% to 85%, Corti made clear that Swissair is
unwilling to take greater responsibility for loss-making ventures
such as Sabena.

People close to Sabena denied that any deal had been struck, but
they conceded that the companies were in talks about what
Swissair could do to avoid increasing its stake.


SABENA SA: Swissair Chief Meets Sabena's Unions
-----------------------------------------------

Swissair CEO Mario Corti met with trade unionists representing
Sabena Airlines at the airline's headquarters, the June 28
edition of AFX News said.

A trade unionist, however, said that little progress was made at
the meeting.


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


KOMERCNI BANKA: Czech Bank to Divert Komercni Payment Off Market
----------------------------------------------------------------

The Czech National Bank will divert the payment by France's
Societe Generale for a 60% stake in Komercni Banka AS away from
the foreign exchange market to prevent an unwanted strengthening
of the koruna, Dow Jones Newswires reported on Thursday.

Instead, the central bank will move an expected 1.2 billion euros
into a special account it has used in the past to avoid
unnecessary volatility in the market from inflows of
privatization revenue.

SocGen is expected to make a single payment to the Czech
government for the Komercni stake after a contract is signed.

The Czech government had chosen SocGen to take the state's stake
in Komercni over rival bids by Italy's Unicredito Italiano SpA
and German-Austrian bank Hypo Vereinsbank AG.


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


EQ ONLINE: Chief Rutanen Resigns
--------------------------------

Petri Rutanen has decided to step down as chief executive officer
of online brokerage firm eQ Online Corporation as of July 1. The
move was in connection with the strategic refocusing of the
company's operations and resources.

Board chairman Jerker Molander will succeed Rutanen as acting
chief executive, while Timo Laitinen will continue as eQ Online's
deputy CEO and president of eQ Securities Ltd.


EQ ONLINE: To Wind Down German Unit
-----------------------------------

Loss-making online brokerage eQ Online on Wednesday decided to
commence the winding down of its German subsidiary, eQ Securities
Ltd., in a bid to improve profitability.

The decision to exit Germany was made after it seemed highly
unlikely that profitability could be achieved in current market
conditions.

EQ said that while the move would leave it with a positive
operating cash flow, it would still make a full-year loss.

Once the winding down has been carried out, the number of
employees of eQ Online Group is estimated to be 90, down from 173
at the end of 2000.


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


DAIMLERCHRYSLER: Truck Unit to Lay Off Workers
----------------------------------------------

DaimlerChrysler AG's Freightliner unit on Thursday said it would
lay off 1,041 workers beginning July 6 amid a continuing weakness
of the North American trucking industry.

The measures affect the Mount Holly plant in the United States,
Canada, and the plant in Mexico.


DEUTSCHE TELEKOM: To Sell Cable Networks
----------------------------------------

Deutsche Telekom will sell its majority stakes in the remaining
six of its nine regional spin-off cable networks to an investment
group formed by Klesch and Liberty Media, Phillips Publishing
International in its June 28 edition said.

The letter of intent was signed with London-based Klesch &
Company and US-based media company Liberty Media for the two to
acquire 55% in each of the six networks serving Bavaria,
Berlin/Brandenburg, Hamburg/Schleswig-Holstein/Mecklenburg-
Vorpommern, Niedersachsen/Bremen, Rheinland-Pfalz/Saarland and
Sachsen/Sachsen- Anhalt/Thuringen.

The investors were given an option to acquire a further 20% stake
minus one vote at a later date.


KABEL: Authorizes Temporary Cessation of Payments
-------------------------------------------------

In response to the increasingly difficult market environment,
Kabel New Media AG has authorized a cessation of payments
throughout the whole group, Frankfurt Stock Exchange in its June
28 press release said.

The restructuring will enable it to react more quickly and
flexibly to the changed market demands.

Parallel to this, the firm's directors carried out discussions
with potential investors, seeking the necessary commitment to
secure additional financial requirements.


PIXELPARK AG: To Cut 300 Jobs
-----------------------------

Multimedia agency Pixelpark will cut 300 jobs as part of a cost-
cutting drive, versus an earlier announcement of 200, according
to Reuters in its June 27 report.

Pixelpark has been struggling to contain costs since it was
forced to cut its full-year sales forecast in March and warned
that first-quarter earnings would be below analysts' forecasts.

Pixelpark will also sell its eastern European operations, close
its U.S. unit, trim its business in the UK, possibly end its
joint venture with Spanish bank Banco Bilbao Vizcaya Argentaria,
and wind up venture capital firm Venturepark Incubator AG.

Pixelpark, 60.3% owned by Bertelsmann AG, received in May a 15-
million-euro cash injection from the media giant.


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


A.C. FIORENTINA: Denies Bankruptcy Petition
-------------------------------------------

The Board of Auditors of A.C. Fiorentina S.p.A. on June 27 denied
that any bankruptcy petition was presented.

The board only presented a report concerning the management of
the dlub to the law courts, in order to allow the club to carry
out their work more calmly, considering the numerous and
contradictory new items which have appeared on the various
information circuits about the economic and financial state of
the club.


A.C. FIORENTINA: Files for Bankruptcy
-------------------------------------

A bankruptcy petition for club Fiorentina was presented to a
Florence tribunal, AFX News in its June 27 edition said, citing
an ANSA news agency report.

The petition comes after media reports that Fiorentina urgently
needed to find 132 billion lire.

AFX News added that the club would not only sell Portuguese
playmaker Manuel Rui Costa and strikers Enrico Chiesa and Nuno
Gomes, but also its Italian international goalkeeper Francesco
Toldo to Spanish giants Barcelona. The Catalan outfit said the
deal was off.


ALITALIA-LINEE: Deal Does Not Herald Further Tie-Up
---------------------------------------------------

The Alitalia SpA and Air France agreement approved by the
government last week does not herald any further tie-up between
the two airlines, the June 27 edition of AFX News said.

According to Industry Minister Antonio Marzano, he prefers an
alliance with either KLM Royal Dutch Airlines NV or Swissair AG.

The alliance with Air France was compulsory, Marzano added.


EPLANET SPA: Suspends Trading, Pending Statement
-------------------------------------------------

Shares in cash-strapped telecommunications and broadband company
ePlanet SpA were suspended in after-hours trading at the Milan
Stock Exchange on Thursday, pending a statement from the company,
Dow Jones Newswires reported.

Earlier this month, ePlanet reached an agreement with new
investors for a recapitalization of about 100 million euros.

The company had been seeking a partner to inject between 60
million and 100 million euros. It also hired investment bank
Lazard and law firm Studio Bonelli, Erede, Pappalardo to find
one.


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


KPN NV: Belgacom Merger to Ease Debt Problem
--------------------------------------------

The heavily indebted telephone operator KPN would be able to sell
its stake in its joint venture with Qwest if it merged with
Belgian counterpart Belgacom, according to the Financial Times in
its June 28 edition.

A merger would trigger a change of control clause in the KPN
Qwest joint venture agreement, allowing KPN to speed up its debt
reduction strategy.

However, the KPN and Belgacom merger, according to analysts,
would appear to provide only minor relief to KPN's 23-billion-
pound debt mountain. Talks with Belgacom are believed to center
around the exchange ratio in which shares will be merged.

KPN last week completed the sale of 220 million Vodafone shares
for an estimated 572 million euros.


KPN NV: Sells Vodafone Shares
-----------------------------

Royal KPN NV on Thursday said it has completed the sale of
219,720,704 shares in Vodafone Group plc. The total proceeds from
the sale were approximately 572 million euros.

Shareholders in the Irish telecom operator eircom had received
Vodafone shares on May 13 as part-consideration for the sale of
its Irish mobile business eircell.

As the indirect holder of 21% of eircom, KPN therefore received
219,720,704 shares in Vodafone, subject to a "lock-up" pursuant
to which KPN had agreed not to dispose of its Vodafone shares
until June 12, 2001.

Deutsche Bank acted as the Sole Bookrunner and Advisor for the
disposal.


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


ELEKTRIM SA: Vivendi to Win Battle for PTC
------------------------------------------

Vivendi Universal SA appeared to win control of wireless operator
Polska Telefonia Cyfrowa after reaching a preliminary deal with
PTC parent Elektrim SA, the Wall Street Journal reported on
Friday.

Under the agreement, Vivendi would take control of PTC and of
Elektrim's other telecom assets, where Vivendi would partially
assume 489 million euros of Elektrim's debt and provide cash and
loans of 220 million euros.

The tentative agreement provides that Elektrim's data-
transmission and local fixed-line units would be merged into
Elektrim Telekomunikacja (ET), a joint venture owned 51% by
Elektrim and 49% by Vivendi.

To further compensate Elektrim for giving up control of PTC, ET
would take on 489 million euros of Elektrim's debts. Finally, the
deal provides that Vivendi would lend Elektrim about 120 million
euros.

Elektrim said it sided with Vivendi instead of Deutsche Telekom
because the terms offered by Vivendi were more generous than the
German operator's proposal. Deutsche Telekom had offered 464.8
million euros in cash for the right to buy an additional 3.45%
stake in PTC and for control of Elektrim's other telecom assets.


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


JAZZTEL PLC: Cuts Investment Plans
----------------------------------

Jazztel PLC has cut back its target for investments in
infrastructure for 2001 and 2002, the June 28 edition of Dow
Jones Newswires said.

The telecommunications company is cutting infrastructure
investment to between 240 million and 260 million euros in 2001
and to between 140 million and 162 million euros in 2002.

The pace of the construction of its network has slowed.
Construction costs had also declined.


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


FRAMFAB AB: Projects Profitability in Fourth Quarter
----------------------------------------------------

Framtidsfabriken AB said it would reach profitability sometime in
quarter four, although it may not post a profit for the full
quarter, AFX News in its June 27 said, citing information
director Mattias Soderhielm.

The clarification follows an AFX interview with Framfab's chief
executive officer Johan Wall, which could be interpreted as
meaning the company was dropping its quarter four forecast.


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


SWISSAIR GROUP: Belgian Government Readies Legal Case
-----------------------------------------------------

The Belgian government is preparing a legal case against
Swissair, the partner of Belgian air carrier Sabena, according to
Dow Jones Newswires' Thursday edition.

Lawyers are looking at alleged damages caused by conditions
imposed by Swissair on the development of Sabena, its alleged
failure to improve Sabena's liquidity, and its refusal to
increase its stake in the airline to 85% from 49.5%.


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


BARINGS: Coopers & Lybrand Settles Claim
----------------------------------------

Liquidator Ernst & Young, attempting to sue Barings bank's former  
auditors Deloitte & Touche and Coopers & Lybrand for 1 billion
pounds over the collapse of the British bank, have reached an
out-of-court settlement with Coopers & Lybrand, the June 28
edition of BBC News reported.

Coopers & Lybrand, which audited Barings Future Singapore in
1994, agreed unspecified terms over its alleged failure in not
warning of unauthorized trading by Nick Leeson, whose 850-
million-pound trading losses prompted Barings' collapse.

The liquidators have not yet reached an agreement with Deloitte &
Touche, which audited BFS in 1992 and 1993, over its alleged role
in the Barings collapse.

Court hearings into Deloitte & Touche's involvement are scheduled
for October.


BRITISH TELECOM: Commission Okays Vodafone-Airtel Deal
------------------------------------------------------

The European Union Commission gave antitrust clearance to
Vodafone's acquisition of British Telecom PLC's stake in Spanish
mobile telephone operator Airtel Movil SA, the Associated Press
in its June 27 edition said.

The commission said that the proposed transaction would not lead
to any overlaps in the activities of Vodafone and Airtel.


INDEPENDENT INSURANCE: Company Profile
--------------------------------------

Name:        INDEPENDENT INSURANCE GROUP PLC
             5th Floor, No.2 Minster Court
             Mincing Lane
             London
             EC3R 7XD
             United Kingdom

Phone:       +44-20-7623-8877

Website:     http://www.independent-insurance.co.uk/

SIC:                Insurance Companies
Employees:          2,019 (2000)
Revenues:           US$1.441 billion (December 2000)
Net Income:         US$23 million (December 2000)
Total Assets:       US$2.564 billion (December 2000)
Total Liabilities:  US$2.092 billion (December 2000)

Type of Business: Provider of general insurance, risk management
and related services in the UK, France and Ireland.

Trigger Event:  The Financial Services Authority is investigating
the private investors who sold Independent Insurance shares in
February. The company was placed into provisional liquidation
after insolvency specialist PriceWaterhouseCoopers said the
company was running out of cash.

Chairman and Interim CEO:  Garth M. Ramsay
Deputy Chairman:           Michael J. Bright
Deputy Managing Director:  Philip J. Condon
Finance Director:          Dennis Lomas

Bankers:            Royal Bank Of Scotland
Financial Advisers: HSBC Investment Bank
Stockbrokers:       HSBC
Auditors:           KPMG Audit Plc
Law Firms:          Herbert Smith
Financial PR Advisers:   College Hill
Provisional Liquidators: Mark Batten and Dan Schwarzmann
Securities:  Total Shares Outstanding  240,792,965 (2000)

Last published in TCR-EUR on June 29, 2001


INDEPENDENT INSURANCE: Members Face Probe From ICA
--------------------------------------------------

The Institute of Chartered Accountants has launched the third
investigation into Independent Insurance, the June 28 edition of
the Financial Times said.

The investigation will look at Independent's directors, such as
finance director Dennis Lomas.

It has not decided whether the probe would be held internally or
whether the accounting profession's watchdog Joint Disciplinary
Scheme would carry it out.

The Serious Fraud Office and city regulator Financial Services
Authority are also investigating Independent, which went into
voluntary liquidation the other week after it was revealed that
it was facing unquantifiable losses stemming from claims that had
not been entered into its accounting systems.

The group, based on the last set of audited accounts, had gross
liabilities of 1.4 billion pounds against assets of 1.7 billion
pounds.


REDSTONE TELECOM: Faces Threat From Shareholders
------------------------------------------------

More than 200 Redstone Telecom shareholders is threatening to
vote against the company's emergency restructuring, according to
The Times' June 28 edition.

Its members are angered by the massive dilution caused by
Redstone's proposed share placement to existing investors and
rights issue to raise 25.3 million pounds.

"Our strategy is to get the best deal possible for the small
shareholders and then to seek an official investigation into the
behavior of the company," chartered accountant Mark Taber said.

The group did not believe that the fundraising would save the
company, but Redstone insisted that the placement and rights
issue was its only option.


REDSTONE TELECOM: Proposes Change of Name
-----------------------------------------

Following the completion of the Placing and Open Offer, the board
of Redstone Telecom has proposed to change the name of the
company to Redstone plc.

Redstone in a June 26 statement said that the name change was
made in order to reflect the development of the group's business
to include voice, data and Internet services in addition to
telecommunications services.


REDSTONE TELECOM: Sets Meeting on July 20
-----------------------------------------

Redstone Telecom has scheduled an Extraordinary General Meeting
on July 20 at The Heathrow Park Hotel, Bath Road, Longford, West
Drayton, Middlesex.

Special resolutions will be proposed in the meeting. These
include the approval of the participation of the Related Parties
in the Placing, the increase of the authorized share capital of
the company, proposal to authorize the directors to allot and
issue the New Ordinary Shares, disapply the statutory pre-emption
rights in respect of the allotment and issue of the New Ordinary
Shares, and the change of company name to Redstone plc.


SCOOT.COM: Seat Not Interested in Scoot
---------------------------------------

Seat Pagine Gialle SpA, the yellow pages and Internet unit of
Telecom Italia SpA, said it is not interested in online directory
service Scoot.com, Dow Jones Newswires reported on Thursday.

Scoot last week published the results of a strategic review of
operations that included the resignation of senior executives, a
cut in staff and higher fees for users.


SCOTIA HOLDINGS: In Talks to Sell Foscan Drug
---------------------------------------------

Ernst & Young, the administrator of biotechnology company Scotia
Holdings, is in exclusive talks with a larger rival over the sale
of its most advanced drug Foscan and other products, the
Financial Times reported on Thursday.

News of the discussions came as European drug regulator European
Medicines Evaluation Agency confirmed it had reversed an earlier
decision and approved Foscan, a treatment against head and neck
cancer.

Analysts said US-based Pharmacia could be in the running. Other
likely candidates are Johnson & Johnson and Abbott.

The deal could ensure the company's survival and help it repay
its debts of more than 50 million pounds.

Scotia, which went into administration in January, has about 6.2
million pounds cash in the bank, enough for a further eight
months at the current cash-burn rate.


WIGGINS GROUP: Blackstone Faces JDS Inquiry
-------------------------------------------

The accountancy watchdog Joint Disciplinary Scheme, according to
The Times' Thursday edition, is investigating non-executive
director Lance Blackstone of Wiggins, the property firm brought
to book for filing false accounts.

Blackstone will face the inquiry with Nick Watson of HLB Kidsons,
Wiggins auditor.

The Financial Reporting Review Panel referred the matter to the
organization in March after the discovery that the accounts were
overstated by 35 million pounds over three years.


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

       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.

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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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