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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

            Wednesday, September 26, 2001, Vol. 2, No. 188


                            Headlines

* A U S T R I A *

LIBRO AG: Creditors Approve Settlement

* D E N M A R K *

MEMORY CARD: Stocks Due for Delisting on Sept. 24

* F I N L A N D *

SONERA CORPORATION: Sells 185MM Euro DT Stake to Cut Debt

* F R A N C E *

MOULINEX: SEB and Idea Bids on Home Appliance Maker

* G E R M A N Y *

DEUTSCHE TELEKOM: Telekom Limits Drop of German Stock Exchange
INFOMATEC INTEGRATED: Investors Win Landmark Infomatec Ruling
DEUTSCHE TELEKOM: Matav on 885-MM-Dollar Deal to Buy Westel

* I R E L A N D *

EIRCOM PLC: Valentia Consortium to Finalize Deal

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

UNITED PAN-EUROPE: Faces $200Mn Fine If It Fails to List Priority

* N O R W A Y *

ENITEL ASA: BanaTele Acquires Fiber Network Unit

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

SWISSAIR GROUP: New Unit Tasked to Build on Crossair's Success
SWISSAIR GROUP: Recruits Seasoned Managers for Rescue Plan
SWISSAIR: Cuts 3,000 Staff From Gate Gourmet Division

* U N I T E D   K I N G D O M *

BARINGS BANK: Creditors Face 20MM Pound Legal Fees
BRITISH TELECOM: March 2002 Debt to Surpass Projected 14BB Pounds
BRITISH TELECOM: May Lose $1.05BB More in Joint Venture
INVENSYS PLC: Dismisses Talk of O'Donovan Departure
LASTMINUTE.COM: To Meet 240% Growth Despite U.S. Attacks
NTL INC.: France Telecom Bids for Broadcast Transmission Arm


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


LIBRO AG: Creditors Approve Settlement
--------------------------------------

Troubled Austrian book retailer Libro AG got 99.8% approval on a
4.6 billion Austrian shillings settlement, the fourth highest
ever for an insolvent company in Austria, Der Standard and
Financial Times on Monday reported.

Close to 100% of the 3,897 of its creditor banks and insolvency
trustees voted for the settlement. The new agreement requires
Libro to pay back at least 40% of its debts in the next 2 years.

The Austrian group has already earlier made job cuts, however,
majority shareowner Kranebitter earlier ruled out further branch
closures.


=============
D E N M A R K
=============

MEMORY CARD: Stocks Due for Delisting on Sept. 24
-------------------------------------------------

Danish IT company Memory Card Technology (MCT) filed for
liquidation on Friday as its shares will be delisted from the
Copenhagen stock exchange on September 24, the Morgenavisen
Jyllands-Posten and Financial Times said on Monday.

On January 29, the company suspended debt payments after
recording major price falls on its core product. Most of its
operations were sold to U.S. company Dataram Corporation in
March.

A so-called "set-off balance" has been made to estimate dividends
to creditors. MCT's assets amounts to 265.74 million Danish
kroners, most of which earlier generated from the Dataram sale.

Unsecured claims amounted to 630.17 million Danish kroners.


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

SONERA CORPORATION: Sells 185MM Euro DT Stake to Cut Debt
---------------------------------------------------------

Cash-strapped Finnish telecom operator Sonera is selling a
further 11.5 million Deutsche Telekom shares for 185 million
euros, the Financial Times said on Monday.  In July and August it
sold 29.1 million Telekom shares to meet its debt obligations.

The move cuts its net debt to 4.4 billion euros against a peak
earlier this year of 5.7 billion euros, still leaving a 2.5
billion euro shortfall by year-end.

Sonera is left with 38.5 million DT shares, which on Monday
afternoon's price of 16.69 euros per share, valued for about
642.5 million.

The Finnish group spent over 4 billion euros on third-generation
phone licences to receive DT shares in exchange for its holdings
in VoiceStream and Powertel, two US mobile phone operators.


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


MOULINEX: SEB and Idea Bids on Home Appliance Maker
---------------------------------------------------

French cooking appliance maker SEB S.A. whose investment fund is
held by AXA Private Equity, was due to submitted plans for the
acquisition takeover of the bankrupt domestic appliance
manufacturer Moulinex on Friday.

According to Liberation and the Financial Times on its September
24 issue, both legal administrators of Moulinex and Brandt have
extended the last date for offers to September 25.

SEB does not intend to takeover all of Moulinex-Brandt's
operations, but is interested in the Moulinex and Krupps brand.

SEB is expected to make an offer if it is given assurance on the
group's economic and social plans.

Brandt, the group's fully owned subsidiary is still threatened t
o wind up as no offers have been received as of yet.

Reports in the French press as cited on Le Monde and Financial
Times on Monday said that another group interested to bid on the
deal, Idea, is acting on behalf of a British or US pension fund
and has some 1.5 billion French fracs at its disposal.


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


DEUTSCHE TELEKOM: Telekom Limits Drop of German Stock Exchange
--------------------------------------------------------------

Germany's DAX bonked into the red at the open on Tuesday which
brought investors into political and financial uncertainty,
Reuters reports on Tuesday.

Heavily weighted Deutsche Telekom, which has gained over 27%
since hitting an all-time low on September 11, rose 0.4%,
limiting downside on the German stock exchange.

Some traders said Monday's six percent rally on the DAX was
overdone and expected investors to sell stock for what profits
they could.

The DAX has lost over 13% since the attacks in America 2 weeks
ago.


INFOMATEC INTEGRATED: Investors Win Landmark Infomatec Ruling
-------------------------------------------------------------

A decision handed down recently by a Bavarian court against two
executives of Infomatec Integrated Information Systems AG could
set a precedent in securities suits in Germany, reports the
Financial Times.

Lawyers believe the decision has the potential of becoming a
landmark case -- that is, if not overturned by a higher court in
Munich.

The court ordered Gerhard Harlos and Alexander Hafele, two
former board members of Infomatec, to pay 100,000 Deutsche marks
($46,746) in losses suffered by a shareholder.

The case stems from an "ad-hoc announcement" two years ago
claiming that the Company had secured a DM55 million order that
turned out to be only worth DM9 million.

In Germany, no company has ever been punished beyond a fine for
misleading announcements and shareholders have never been awarded
damages for losses based on such statements.

In the case of Infomatec, the lawyer who represented the winning
shareholder said there were allegedly 200 others who lost DM10
million as a result of the misleading statement in 1999.

According to some quarters in the legal profession, the immediate
effect of the decision would be the settling of pending cases out
of court.

But there are those who also believe an escalation of similar
suits and there subsequent settlement is not likely.

This since what the court did in the Infomatec case was attached
the liability to the executives rather than on the Company.


DEUTSCHE TELEKOM: Matav on 885-MM-Dollar Deal to Buy Westel
-----------------------------------------------------

Hungary's telecom giant Matav Rt. announced it will buy the
shares in mobile phone provider Westel Rt. for US$885 million dollars
in an attempt to guarantee future profit growth. Matav's
option expires at the end of September.

Kalman Balla, Matav spokesman said in an interview according to
Bloomber on Tuesday said it will buy the 49 percent stake of
Westel from its parent company, Deutsche Telekom AG.

Matav's forsees its long distance monopoly expires next year and
foreign rivals such as Vivendi Universal SA is affecting its
profit growth.

Wit the upsurge of mobile phone service, Hungary's largest
wireless company, Westil will bring Matav's profit up in the
coming years, analysts said.


=============
I R E L A N D
=============

EIRCOM PLC: Valentia Consortium to Finalize Deal
------------------------------------------------
Sir Anthony O'Reilly, who heads the Valentia consortium, is about
to conclude an 80%-Eircom-stake acquisition to complete its US $3-
billion deal with the Irish telecoms group.

Valentia, backed by investors including George Soros, the US
financier, said yesterday that it had secured 70.5% of the target
company and would extend its offer up to Friday.

O'Reilly who heads the Valentia bid expects more of the deal
saying "we will soon receive further acceptances that carry us
over the 80% acceptance threshold."

Under takeover rules, Valentia can move to compulsory acquisition
of remaining Eircom shares once it hits the 80% mark, the Times
said on Monday.


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


UNITED PAN-EUROPE: Faces $200Mn Fine If It Fails to List Priority
-----------------------------------------------------------------

Gaining a listing for its Priority Telecom subsidiary on Thursday
may be a bitter pill to swallow, but it is one United Pan-Europe
Communications N.V. has to do or risk taking another.

The Company faces a $200 million penalty if it fails to gain a
separate quotation for the subsidiary, despite the fact that it
may not be the most auspicious time to do it.

The move is part of an earlier commitment by UPC when it bought a
controlling stake in Cignal Global Communications last year.

Meeting this commitment will give the Company a little financial
breathing space, as it won't have to part ways with the money, a
critical resource these days.

The listing is not expected to bring in new cash for UPC,
although it will make the subsidiary's balance sheet appear
"respectable," says the Financial Times.

Cignal owns 15 percent of Priority, equivalent to the amount of
the free float on Thursday.


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

ENITEL ASA: BanaTele Acquires Fiber Network Unit
------------------------------------------------

Telecommunications company BaneTele, is acquiring the fibre
network unit of Enitel, the insolvent data solutions provider,
Aftenposten and the Financial Times reported on Friday.

According to BanaTele CEO, Trygve Tamburstuen, his company
envisions to establish a network infrastracture out of the merger
to compete against Norway's telecom giant, Telenor.

The papers said that the network was sold for 300 million Norway
kroners and paid in cash.

Enitel's network division will be a subsidiary of BaneTele called
BaneTele Nett, until the companies and networks are integrated.


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

SWISSAIR GROUP: New Unit Tasked to Build on Crossair's Success
--------------------------------------------------------------

Ailing flag carrier Swissair Group has formed a new division,
Swiss Air Lines, tasked to create a detailed bailout and
restructuring plan for the group, reports the Financial Times on
Monday.

The new division will build on the approach of Crossair -- that is,
"providing high quality product whilst implementing a significantly
lower cost model than Swissair."

The two airlines have been operating at arm's length from each
other, with the balance tipping against Crossair, as evidenced by
the comparatively low pay of its pilots compared to Swissair's.

But times are changing and the purse of the Group is becoming
shallower.

The new division will be captained by Crossair's chief executive
Andre Dose, whose appointment many consider as the beginning of a
cultural revolution within the group.

The new division will focus primarily on European point-to-point
premium traffic while enhancing service on profitable long haul
routes


SWISSAIR GROUP: Recruits Seasoned Managers for Rescue Plan
----------------------------------------------------------

Troubled Swissair Group has added experience and hopefully luck
to its management team to help resurrect the flag carrier, which
is on the brink of bankruptcy, reports the Financial Times.

Former Nestle finance chief Mario Corti and 71-year-old Ulrich
Bremi, who once headed the Swiss Re insurance giant, has been
brought in to formulate a public/private sector bailout plan.

They are expected to present their proposal by October 10.

The airline badly needs an infusion of equity as its debt has now
reached SFr15 billion ($9.5 billion), with equity just amounting


SWISSAIR: Cuts 3,000 Staff From Gate Gourmet Division
-----------------------------------------------------

Struggling Swissair airline has caused the axe to fall on 3,000
of its staff in Gate Gourmet, an airline catering unit, in a
drastic move to save the company from an imminent bankruptcy.

In addition, it has also decided to cut its long-haul fleet by a
quarter and fuse its short haul operations with its low-cost
sister company Crossair, reports the Financial Times.

The airline has about 30,000 employees at Gate Gourmet, its
biggest non-airline unit.


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

BARINGS BANK: Creditors Face 20MM Pound Legal Fees
--------------------------------------------------

Creditors who sued former Barings Bank auditors for 1 billion
pounds for allegedly bringing Barings to its downfall, suffered a
setback when they were called to pay over 20 million pounds in
legal fees, the Independent Digital said Saturday.

The Independent further reports that Credit Suisse First Boston
is  among the investment banks behind the action. In addition,
Majority of the creditors revealed to include CSFB and a handful
of so-called US vulture funds led by CoMach Partners. No member
of the group is aware of the proportion of notes held by each
other.

A High Court ruling gave KPMG, the liquidators acting for
Barings' creditors, until December to make the payments. Expected
funds out of Barings claim will be the source to cover the
incurred legal bills.

The liquidators had vigorously opposed the order, which was
requested by the defendants Coopers & Lybrand, now part of
PricewaterhouseCoopers, and Deloitte & Touche.

Christopher Butcher submitted a schedule of correspondence
between the 5 City solicitors working on the case to defend their
high fees spoke for Deloittes saying that most of the money will
pay for the 18.5 million pounds of incurred cost.

Lawyers for the London and Singapore offices of Coopers have hit
up 14 million pounds so far.


BRITISH TELECOM: March 2002 Debt to Surpass Projected 14BB Pounds
-----------------------------------------------------------------

It appears that the total debt of British Telecommunications by
March 2002 could top the 14 billion pounds that analysts had
earlier projected, the Financial Times on its Monday issue
reports.

Last week, in a publication related to its with its mobile phone
unit MMO2 demerger, the Company admitted its debt could well be
between 15 billion and 17 billion pounds.

This despite the recent asset-disposals made by the Company,
which analysts had expected to bring down its debt to between
13.25 billion and o14 billion pounds.

Part of the reason that has kept forecasts off the mark is the
uncertainties in the balance sheet write-downs from other
investments.

These are investments whose values have been impaired by the
collapse in the "telecom sentiment," the report says.

Already, the Company has written down 3 billion pounds of assets
in Germany.

For now investors are wondering, "what other skeletons may be
left in the cupboard," the Financial Times says.


BRITISH TELECOM: May Lose $1.05BB More in Joint Venture
-------------------------------------------------------

A recent publication listing particulars of the de-merger
of British Telecommunications and its mobile phone MMO2
unit raises more questions than clarifies terms, reports the
Financial Times.

The biggest uncertainty lies in the ongoing move to
renegotiate the structure of Concert, the Company's losing
joint venture with AT&T of the US, which now appears to be
a complicated undertaking than previously realized.

According to the listing, the move could leave the Company
with a liability of 1.05 billion US dollars apart from the
projected asset write down amounting of about 1.97 billion
US dollars.

Apparently, an obscure arrangement dating back from
another joint investment in Canada would require it to pay
AT&T the above amount.

At present, details are sketchy and more so because
Company executives have refused to clear the matter until
the negotiation with AT&T is completed.


INVENSYS PLC: Dismisses Talk of O'Donovan Departure
---------------------------------------------------

Invensys PLC finance director Kathleen O'Donovan, who has been
partly blamed for the Company's financial woes, has been allowed
to hold on to her position -- at least, for now, the Financial
Times reports on Sunday.

In a move seen to arrest any further erosion of investor
confidence, the Company dismissed speculations that the
beleaguered director is stepping down soon.

Accordingly, the newly elected CEO Rick Haythornthwaite has made
O'Donovan's continued stay as a condition for his accepting the
job.

Analysts, however, believe O'Donovan's stay is just temporary as
Haythornthwaite assumes his post in an industry he does not know
much about.

Haythornthwaite formerly captained Blue Circle Industries, a
cement manufacturer.

In contrast, O'Donovan was appointed to head the finance
department of BTR 10 years ago when she was 34, making her
at the time the youngest to hold such a position in an FTSE-100
company.

The engineering conglomerate merged with rival Siebe in 1998 to
form Invensys.

In recent weeks, the shares of Invensys slipped by 47 percent to
35 points, a 10-year low, on fears that the Company will falter
on its banking covenants.


LASTMINUTE.COM: To Meet 240% Growth Despite U.S. Attacks
--------------------------------------------------------

Online travel agent and retailer Lastminute.com announced on
Monday it would maintain its fourth quarter targets despite
insecurities from the terrorist attacks in the US, the Financial
Times on Sept 24 reports.

Lastminute CEO Brent Hoberman said there would "undoubtedly be
repercussions from that activity for some weeks to come" however,
he said Lastminute expects to meet a minimum of 45 million
pounds ($65.5 million) total transaction value in the quarter to
September 30, 2001 - a projected growth of around 240% relative
to last year.

Hoberman disclosed that "The USA as an outbound destination has
only accounted for 3.8 % of group total transaction value during
the past 6 months. Our exposure to this market is therefore very
low."



NTL INC.: France Telecom Bids for Broadcast Transmission Arm
------------------------------------------------------------

France Telecom, the largest shareholder of NTL, Inc., is keen on
acquiring the latter's broadcast transmission division but it is
not likely to be the preferred bidder, says the Financial Times
on Sunday.

According to the report, two other financial groups have also
offered bids that have higher cash elements.

The French company is reportedly negotiating with private equity
groups to finance its bid in order to maintain its own current
debt position that stands at E65 billion ($60 billion).

NTL embarked on the sale of its tower business in order to dispel
perception that it does not have enough money to reach
profitability by end of 2003.

Already the perception has brought down its share price in New
York, which fell to an all-time low of $1.50.

The Company debt pile is expected to reach o12.6 billion, which
will give it very little margin for error in 2003, the year preceding
its projected takeoff.

                                    ***********

        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 Maria Lourdes L. Reyes, Editors.

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

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Information contained herein is obtained from sources believed to
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