/raid1/www/Hosts/bankrupt/TCREUR_Public/010913.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

          Thursday, September 13, 2001, Vol. 2, No. 179


                            Headlines

* A U S T R I A *

LIBRO AG: Settlement Remains Uncertain

* B E L G I U M *

LERNOUT & HAUSPIE: Will Cut More Jobs to Survive
LERNOUT & HAUSPIE: Needs Deal to Avoid Liquidation

* F R A N C E *

MOULINEX SA: Chairman Puy Criticizes Nocivelli Brothers
MOULINEX SA: Liquidation Provokes Political Reactions
MOULINEX SA: Production Suspended in Austria
SOFRER: 350 Employees Join Strike

* G E R M A N Y *

BANKGESELLSCHAFT BERLIN: NordLB to Subscribe 165MM Euros
DAIMLERCHRYSLER: Profit Is Chrysler's Priority
DEUTSCHE TELEKOM: Callahan Buys Cable Network for 1.2BB Euros
DEUTSCHE TELEKOM: Hutchison to Sell DT Shares
MANAGEMENT DATA: Administrator Accepts Takeover Offer
MET@BOX AG: Staff Members Faces Legal Probe

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

KPN NV: E-Plus Remains With KPN

* N O R W A Y *

ENITEL ASA: Sells Parts of Company for NKr17MM

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

SWISSAIR GROUP: Denies Debt Waivers Talks With Banks
SWISSAIR GROUP: Sells Stake in Flughafen Restaurant

* U N I T E D   K I N G D O M *

MARCONI PLC: Ejected From FTSE 100
MARKS & SPENCER: To Open Discount Shops


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


LIBRO AG: Settlement Remains Uncertain
--------------------------------------

Retail group Libro, its creditor banks and insolvency trustee
have two more weeks to get the company on track for the
settlement scheduled on September 21, according to Der Standard's
Monday report.

Earlier, majority shareholder Gottwald Kranebitter announced that
it remains uncertain whether a settlement will be reached and
admitted that he could not rule out bankruptcy after the
settlement.

Under the settlement agreement, Libro will be forced to pay back
40% of its Sch4 billion debt within the next two years.


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


LERNOUT & HAUSPIE: Will Cut More Jobs to Survive
------------------------------------------------

Belgium's troubled speech technology company Lernout & Hauspie
will lay off at least 173 jobs, or 30% of its work force in
Belgium and the United States to survive, according to the
Tuesday edition of Xinhua News Agency.

The company, which had been under bankruptcy protection since
January, handed in earlier to a local commercial court a new
rescue plan, which shows that it has to cut jobs in the research,
administration and technology divisions.

L&H has funding to survive until at least the end of October
after selling its Mendez operation to Bowne Global Solutions. It
is still negotiating to sell off other parts of its operations to
outside organizations and management buyouts.


LERNOUT & HAUSPIE: Needs Deal to Avoid Liquidation
--------------------------------------------------

Belgium's troubled speech technology company Lernout & Hauspie
Speech Technology NV has warned it needs to reach a deal with a
buyer for its main speech technology division this month to avoid
going into liquidation, according to the Xinhua News Agency's
Monday report.

"If we don't get a binding agreement sometime before September
17, then I think we're dead," Chief Executive Officer Philippe
Bodson said.

Meanwhile, two companies have already shown interest in the
speech and language technology division. Names of the parties
were not disclosed.

Lernout & Hauspie needs $25 million to save its core technology
unit. It has enough cash to operate until the end of October.


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


MOULINEX SA: Chairman Puy Criticizes Nocivelli Brothers
-------------------------------------------------------

Chairman Patrick Puy of French appliance maker Moulinex severely
criticized the group's Italian shareholders Luigi and Gianfranco
Nocivelli for not fulfilling their duty as shareholders, the
Monday edition of Les Echos said.

According to Puy, the Nocivelli brothers are responsible for the
group entering voluntary liquidation.

The shareholders have approved the company's rescue plan in July
but later refused to assume the financial consequences.


MOULINEX SA: Liquidation Provokes Political Reactions
-----------------------------------------------------

Moulinex's application for voluntary liquidation is continuing to
cause numerous reactions, the September 11 edition of the Le
Monde newspaper said.

The Prime Minister has concentrated on the State's role in the
economy, declaring that he had always thought that despite a
market economy, the government would keep an economic and above
all social role.

CFDT secretary general Nicole Notat remains dubious on the role
played by the State.

The commercial court of Nanterre has put Moulinex SA in
receivership for six months after the French appliance maker
filed for bankruptcy for its Moulinex and Brandt operations and
subsidiaries last week.


MOULINEX SA: Production Suspended in Austria
--------------------------------------------

Production was suspended on Monday at the Vomp site of Elektra
Bregenz, a subsidiary of the insolvent French household appliance
manufacturer Moulinex Brandt, according to report from Die
Presse.

The 230 staff members of the Austrian plant has been given a
week's holiday, and the probability that production will be
resumed soon is said to be very high.

Jobs are not expected to be lost at the site because it is one of
the group's few profit-making factories.


SOFRER: 350 Employees Join Strike
---------------------------------

Around 350 Sofrer employees demonstrated in Paris on Monday at
the headquarters of SpectraSite, calling for the jobs to be
guaranteed, Le Figaro in its September 11 edition said.

The jobs are under threat after the Nanterre commercial court put
the telecoms network specialist into receivership with a six-
month observation period.

SpectraSite Transco has acquired all of the Sofrer's capital and
injected FFr450 million.

Sofrer expects its turnover to drop from 166.9 million euros in
2000 to 12.1 million euros in 2001.


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


BANKGESELLSCHAFT BERLIN: NordLB to Subscribe 165MM Euros
--------------------------------------------------------

German bank Norddeutsche Landesbank, the second largest
shareholder in Bankgesellschaft Berlin, will subscribe 165
million euros to the planned 2-billion-euro capital increase of
the troubled bank, according to the Monday edition of Reuters.

NordLB said the move would cut its stake in Bankgesellschaft to
10% from 20%.

Aside from NordLB, a consortium led by former Goldman Sachs
investment banker J. Christopher Flowers is also interested in
buying the bank.

Loss-making Bankgesellschaft, also owned by the city of Berlin,
is subject to a number of legal and regulatory probes linked to
losses in the Berlin real estate market.


DAIMLERCHRYSLER: Profit Is Chrysler's Priority
----------------------------------------------

Chrysler chief executive Dieter Zetsche said that the company's
priority is to return the company, the U.S. arm of German-
American automaker DaimlerChrysler AG, to profitability after
four losing quarters, the Associated Press reported on Tuesday.

The company is in the first year of a three-year restructuring
program that includes cutting costs and reducing its work force
and capacity.

According to Zetsche, returning to profitability is more
important than retaining Chrysler's status alongside Ford and
General Motors.

Earlier, the Troubled Company Reporter Europe said that
DaimlerChrysler would slash prices on the 2002 models of
Chrysler, Jeep and Dodge cars and trucks, an average cut of $199
a vehicle, to pump up sales and minimize profit-eating
incentives.


DEUTSCHE TELEKOM: Callahan Buys Cable Network for 1.2BB Euros
-------------------------------------------------------------

Deutsche Telekom said on Tuesday it has now completed the sale of
its cable network to Callahan Associates, the new majority
shareholder.

Callahan, which already operates the cable network in North-Rhine
Westphalia as majority owner, is buying 60% of the shares in the
Baden-Wurttemberg regional company for 1.2 billion euros. It also
has an option to acquire the remaining 40% stake.

Earlier this month, Telekom has concluded a definitive agreement
with U.S.-based Liberty Media Corp. to sell its cable-television
operations in six German regions for about 5.5 billion euros. The
sale is part of Telekom's aim to cut its net debt level from 65.5
billion euros to 50 billion by the end of next year.


DEUTSCHE TELEKOM: Hutchison to Sell DT Shares
---------------------------------------------

Hong Kong conglomerate Hutchison Whampoa plans to sell its 170
million shares in Deutsche Telekom on the stock market, the
Tuesday edition of the Financial Times Deutschland said.

According to Hutchison chief Canning Fok, Telekom's shares had
been disappointing, falling 5.3% to 16.03 euros on Monday. The
company's share price also lost more than 20% of its value since
the beginning of August when an institutional investor sold 44
million of the shares in one day.

Earlier, Deutsche Bank sold 44 million Telekom shares on the
stock market for Hutchison.


MANAGEMENT DATA: Administrator Accepts Takeover Offer
-----------------------------------------------------

Media software company Management Data AG on September 3 said its
insolvency administrator Dr. Klaus Pannen has accepted a takeover
offer to both the D.A.V.I.D. GmbH (Munich) and OmniBus Systems
Ltd. (U.K.) subsidiaries from a major English financial investor.

The Management Data board has been in discussions with the
mystery investor since the beginning of the year and has prepared
the ground for the decision.

Meanwhile, negotiations continue with other interested investors
for facilities in Hamburg, Germany.

Recurring losses have caused Management Data to seek financial
aid from investors. A 5-million-euro injection by U.S. investor
Global Emerging Markets was not even enough to save the company.
The insolvency proceedings for the estate of the media software
group opened on August 31.


MET@BOX AG: Staff Members Faces Legal Probe
-------------------------------------------

Staff members of German set-top box manufacturer Metabox AG,
including chairman Stefan Domeyer, are being investigated for
providing the stock market with incorrect information, the
Tuesday edition of Die Welt said.

The public prosecutor's office in Hannover confirmed reports that
appeared in the German press, which claimed that a large order
from Denmark was placed fraudulently.

Metabox announced in June 2000 that it had concluded an agreement
with Danish-base Inter-Nordic to supply 1.8 million set-top
boxes. Its share price rose considerably following the
announcement.

Inter-Nordic has said that it did not agree to buy any set-top
boxes. The company was not even entered on the Danish companies
list at the time of the announcement.


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


KPN NV: E-Plus Remains With KPN
-------------------------------

E-Plus, the German mobile-phone unit of KPN, is not up for sale
as it is one of the Dutch telecom group's most important assets,
Handelsblatt reported yesterday, citing designated chief
executive Ad Scheepbouwer

Scheepbouwer added his company would announce before the end of
this week an alliance between E-Plus and another UMTS-license
holder in Germany in its aim to reduce the costs of building up
the networks for the next generation of mobile phones.

Reports say that Group 3G, a joint venture between Spain's
Telefonica and Norway's Sonera, will be the new partner of E-
Plus.


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


ENITEL ASA: Sells Parts of Company for NKr17MM
----------------------------------------------

Enitel, Norway's second largest fixed telephony provider, sold
its two divisions for application service provision (ASP) and
systems integration for 17 million Norwegian krone, the
Aftenposten news reported on Monday.

The new Enitel business plan was dependent upon a sale of the
units.

Enitel's ASP and systems integration units recorded turnover of
DKr250 million last year, with operating losses of NKr65 million.

The company has been close to liquidation due to an ambitious
expansion program, poor administration and the difficult
financial markets. If Enitel is declared insolvent, it will
affect not only the private debenture investors, but also perhaps
the banks, including Nordic banking group Nordea, that lent the
capital to investors.

Enitel's bank debts currently total 1.45 billion Norwegian krone.


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


SWISSAIR GROUP: Denies Debt Waivers Talks With Banks
----------------------------------------------------

Swissair Group on Monday denied a report from Swiss newspaper
Sonntagszeitung that the troubled Swiss aviation company is
negotiating debt waivers with some of its banks.

On the contrary, as announced on August 30, Swissair Group is
accelerating its bank debt repayments with full repayment of its
bank debt being achieved prior to the end of 2002.

The Group is in compliance with all covenants relating to its
borrowings and will continue to make all payments of interest and
principal as they fall due.

To achieve the acceleration in debt reduction and improve its
equity position, Swissair plans to dispose a majority stake in
Swissport in 2001 and either its entire holding or a majority
share in The Nuance Group in early 2002.

The move will enhance the liquidity position of Swissair, which
posted a first-half net loss of 234 million Swiss francs (see
http://bankrupt.com/misc/swissair1.pdffor the group's  
consolidated income statement).


SWISSAIR GROUP: Sells Stake in Flughafen Restaurant
---------------------------------------------------

Italy's Autogrill SpA bought Swissair Group's remaining 50% stake
in airport restaurants company Flughafen Restaurant AG for 16
million Swiss francs, Dow Jones Newswires reported on Tuesday.

Swissair Group said the divestment is part of its plan to
concentrate on airline-related activities.

The former joint venture between Autogrill and Swissair had sales
of 74 million Swiss francs in 2000.

Earlier, the beleaguered Swiss aviation group said it would
dispose 80% of its stake in its ground handling business
Swissport to British private-equity group Candover Investments
PLC. Terms were not disclosed.


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


MARCONI PLC: Ejected From FTSE 100
----------------------------------

Telecoms equipment maker Marconi, according to the Daily
Telegraph yesterday, was expelled from London Stock Exchange's
FTSE 100 Index on Tuesday night.

Other casualties were telecoms equipment tester Spirent, business
telecoms groups Colt Telecom and Energis, and cable company
Telewest.

Marconi chairman Sir Roger Hurn and chief executive Lord Simpson
were forced out of the company early last week on warning that
losses could reach 5 billion pounds this year and that Marconi
would further axe 2,000 jobs.


MARKS & SPENCER: To Open Discount Shops
---------------------------------------

Troubled retailer Marks & Spencer aims to boost customer numbers
by opening four cut-price Outlet stores in England by spring next
year, The Scotsman newspaper reported on Monday.

The shops in Swindon, North Shields, Manchester and Street in
Somerset will sell end-of-season clothes and toiletries 30% below
regular M&S store prices.

Marks & Spencer is in negotiations with a number of bidders for
the sale of its British outlets. It previously announced plans to
close its 38 stores in mainland Europe and sell its American
subsidiary's clothing chain, Brooks Brothers, and Kings
supermarket chain for about 500 million pounds.

                                   ***********

     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
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Information contained herein is obtained from sources believed to
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