/raid1/www/Hosts/bankrupt/TCREUR_Public/011005.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

            Friday, October 05, 2001, Vol. 2, No. 195


                            Headlines

* B E L G I U M *

CITY BIRD: Court Fines Thomas Cook on Takeover Withdrawal
LERNOUT & HAUSPIE: Disclosure Statement Hearing Delayed
SABENA SA: Belgium to Grant One-Month Loan
SABENA SA: Seeks Bankruptcy Protection

* F R A N C E *

MOJORETTE: To Close Production Site

* G E R M A N Y *

EM.TV: Formula One Stake Sale Nears End
LTU GROUP: Unaffected With Swissair Crisis
MEIRO GROUP: Files for Insolvency
MB SOFTWARE: Begins Insolvency Proceedings
POPNET INTERNET: May Lose Employees With Insolvency

* G R E E C E *

OLYMPIC AIRWAYS: Will Levy $3 Surcharge

* I T A L Y *

ALITALIA-LINEE: Adds $5.50 Ticket Charge

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

UNITED PAN-EUROPE: Needs EUR 1 BB to Solve Cashflow Hurdle

* N O R W A Y *

BRAATHENS ASA: Norwegian Financier Expresses Interest

* S W E D E N *

ADCORE AB: Completes Asset Sale
FRAMFAB AB: Sells B2 Bredband Holding
FRAMFAB AB: To Sell Dimac Shares Again
INEXA PROFIL: Insolvency Threatens 300 Jobs

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

CARRIER1 INTERNATIONAL: Cuts Workforce by 35%
SWISSAIR GROUP: Atraxis Unit Cuts Jobs
SWISSAIR GROUP: Bonds Make Recovery
SWISSAIR GROUP: Resumes Flight Operations
SWISSAIR GROUP: Stock Exchange Removes Shares From Indexes
SWISSAIR GROUP: To Sell Volare Stake

* U N I T E D   K I N G D O M *

COLT TELECOM: Fidelity Secures Colt Future
MARKS & SPENCER: Sale and Leaseback Deal Nears Completion
SCOOT.COM: Completes Sale of Loot Business


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


CITY BIRD: Court Fines Thomas Cook on Takeover Withdrawal
---------------------------------------------------------

The Belgian commercial court has fined Thomas Cook AG with for
pulling out of its planned acquisition of City Bird Holding SA,
the Financial Times reported Wednesday.

The 620,000-euros-per day fine is payable to City Bird.

Thomas Cook invoked a suspension clause in the sale agreement
last week.


LERNOUT & HAUSPIE: Disclosure Statement Hearing Delayed
-------------------------------------------------------

A court hearing on Lernout & Hauspie Speech Products N.V.'s
disclosure statement, or a summary of a reorganization plan, will
be postponed until October 12, according to Dow Jones Newswires'
Wednesday report.

The hearing was originally scheduled for September 25.

The Belgian company that develops speech recognition and
translation software, filed for Chapter 11 bankruptcy protection
from its creditors late last year amid an accounting scandal and
heavy debt load.

In August, L&H and its Lernout U.S.A. and Dictaphone units filed
a joint plan of reorganization.


SABENA SA: Belgium to Grant One-Month Loan
------------------------------------------

Belgian privatization minister Rik Daems said the government
would grant national carrier Sabena SA a one-month bridge loan of
123.9 million euros, Dow Jones Newswires reported Wednesday.

"What we want from the company is to continue operations so we
won't be in a situation like Swissair," Daems said.

Swissair, Sabena's co-owner, was forced to ground its flights
Tuesday and Wednesday after the group failed to obtain financing
for its day-to-day operations.


SABENA SA: Seeks Bankruptcy Protection
--------------------------------------

Troubled Belgian airline Sabena SA sought bankruptcy protection
from creditors Wednesday after co-owner Swissair failed to
provide the financial assistance it promised, reports the
Associated Press.

Employment Minister Laurette Onkelinx said Sabena was left with
no other option but to either seek protection from creditors or
go completely bankrupt.

The Belgian government, which owns 50.5% of Sabena, lent the
airline some $114 million to continue operating. It is taking
Swissair to court to try to force it to make the payment.

Earlier Wednesday, Sabena chairman Fred Chaffart reassured
customers that its flights are operating normally.


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


MOJORETTE: To Close Production Site
-----------------------------------

After 10 difficult years, French toy carmaker Majorette has
decided to close its production site in the Lyon suburbs, reports
Le Figaro.

Around 340 jobs are at risk.

The production site is heavily loss making and production costs
are prohibitive compared with those at the group's plant in
Thailand.

Majorette filed for bankruptcy in 1992, acquired by Ideal Loisirs
a year after, and taken over by Germany's Triumph Adler in 1996.


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


EM.TV: Formula One Stake Sale Nears End
---------------------------------------

Troubled media-rights group EM.TV AG is close to reaching
agreement over selling its broadcasting rights to Formula One
racing, according to Handelsblatt's Monday report.

EM.TV chairman Werner Klatten, who took over founder Thomas Haffa
at the end of July, has made it no secret that Formula One no
longer counts among EM.TV's core activities.

The company is weighed down with enormous interest payments after
making several acquisitions when prices were at their height. A
sale of Formula One will be aimed at reducing this burden.

EM.TV, saved by media giant Kirch Gruppe from bankruptcy last
year, also plans to divest the Muppets creator Jim Henson Group
and film-rights trader Tele-Munchen.

The group posted a first-half pretax loss of 127 million deutsche
marks, after a pretax profit of 23.5 million deutsche marks a
year ago.


LTU GROUP: Unaffected With Swissair Crisis
------------------------------------------

Chartered flight operator LTU Lufttransport-Unternehmen GmbH,
according to Die Welt & World Reporter's Tuesday report, is
currently unaffected by the crisis faced by its shareholder,
Swissair.

The company, which has been faced by losses for some years, is
undergoing a recovery program aiming to save around 600 million
deutsche marks by 2003.

Next year, Swissair is expected to pay LTU under an agreement to
provide the required capital.

If Swissair becomes insolvent, LTU will have to seek other
sources of financing from other existing investors or former
investor Westdeutsche Landesbank.


MEIRO GROUP: Files for Insolvency
---------------------------------

The Meiro group has filed for insolvency proceedings because of
over-indebtedness, the Monday edition of Frankfurter Allgemeine
Zeitung said.

Meiro owns and operates a heart and circulation center and a
sports and conference hall in Rotenburg in Germany, as well as
various hotels in the region. It employs 1,300 people.

The provisional insolvency administrator Fritz Westhelle thinks
it is unlikely the group will be unable to continue.

The public prosecutor is carrying out an investigation into
managing directors Juergen and Bernd Meise on suspicion of fraud.
Supervisory board members will also be investigated.


MB SOFTWARE: Begins Insolvency Proceedings
------------------------------------------

German architectural and construction software developer MB
Software AG has started its court proceedings early this week,
the recent report of Frankfurter Allgemeine Zeitung/FT
Information said.

Together with board member Bernd-Wolfgang Diekmann, insolvency
practitioner RA Helge Wachsmuth will continue negotiations with
potential investors.

MB Software, which filed for insolvency with the county court in
Hamlin in July, will now concentrate on its core business, the
report added.


POPNET INTERNET: May Lose Employees With Insolvency
---------------------------------------------------------

Hamburg-based Internet service provider PopNet Internet AG is
concerned over a possible loss of staff and business, according
to Die Welt & World Reporter's Tuesday edition.

Lutz Kuchenmeister and Jens-Peter Hess, managing directors of
subsidiary E-Solutions, resigned shortly before the insolvency
application in September.

The two managers are now reported to have offered other PopNet
staff members with employment contracts.

PopNet has a looming decline in turnover and increasing liquidity
requirements. It also posted an EBITDA loss of approximately
3.942 billion euros, and an EBIT loss of approximately 6.750
billion euros for the first half of 2001.


===========
G R E E C E
===========


OLYMPIC AIRWAYS: Will Levy $3 Surcharge
---------------------------------------

The state-owned Greek airline Olympic Airways is one of those in
the world aviation industry affected by the terrorist attacks on
the U.S., according to Agence France-Presse's Tuesday report.

As a result, Olympic Airways will levy a surcharge of three
dollars per passenger to pay for higher insurance costs.

Also affected are Swiss aviation group Swissair, Belgian carrier
Sabena, and Italian carrier Alitalia, to name a few.

Last month, public unions have opposed to the government's
privatization of the already cash-strapped airline.


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


ALITALIA-LINEE: Adds $5.50 Ticket Charge
----------------------------------------

Italian national airline Alitalia is adding a $5.50 surcharge to
all tickets because of problems stemming from a deep crisis in
the transport industry, according to the Wednesday edition of
Associated Press.

The Italian government has agreed to provide financial assistance
to the airline industry to offset losses in the wake of the
terrorist attacks in the U.S. The assistance included guarantees
to compensate for reductions in insurance coverage.

Alitalia also said it was considering cutting 2,500 jobs to
contain losses.


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


UNITED PAN-EUROPE: Needs EUR 1 BB to Solve Cashflow Hurdle
----------------------------------------------------------

Debt-laden cable network operator United Pan-Europe Corporation
needs up to one billion euros to become cashflow positive.

UPC states its funding requirements have gone within the range of
500 million to 1 billion euros, and not between 350 and 850
million as projected in August.

This announcement follows UPC's move of injecting additional
capitalization of 150 million euros for the floatation of its
subsidiary Priority Telecom last month.

The Dutch company has a cash burn of 150 million euros per month,
and a cash burn target of 125 million euros per month next year.


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


BRAATHENS ASA: Norwegian Financier Expresses Interest
-----------------------------------------------------

Norwegian financier Trygve Hegnar is interested in becoming a
shareholder of Norwegian airline Braathens, reports the
Aftenposten/FT Information.

Hegnar said that companies and investors have approached him to
investigate the possibility of acquiring Braathens.

The report added that Braathens is still looking to complete a
deal with Scandinavian Airline SAS, although the Norwegian
competition authorities rejected the bid.

The company also claimed it would have to go into liquidation if
it is not acquired by SAS.


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


ADCORE AB: Completes Asset Sale
-------------------------------

Leading Stockholm-based Internet consultancy firm Adcore has
completed the restructuring initiatives it embarked on a few
months ago.

Adcore has inked an agreement with Johan Bredberg, former CEO of
Information Highway Management Consultants and of Veritema
Consulting, regarding the sale of operations in Malmo, Gothenburg
and Vasteras.

Adcore simultaneously decided to initiate MBL negotiations, a  
requirement of Swedish legislation regarding employee
participation, regarding the wind-down of its offices in
Sundsvall and Umea in Northern Sweden.

Adcore recently recorded losses of 1.9 billion Swedish kronor
(see http://bankrupt.com/misc/adcore1.pdffor the company's  
financial report) in the first half of 2001.

For more information, please contact CEO Ole Oftedal at telephone
+46 (0)705 92 75 99 or at ole.oftedal@adcore.com  


FRAMFAB AB: Sells B2 Bredband Holding
-------------------------------------

Leading Internet consultancy firm Framefab AB is selling its
entire 15% holding in B2 Bredband Mobil AB to Bredbandsbolaget.

"Now that B2 Bredband Mobil AB has terminated its holding in the
3G consortium Orange Sverige AB, it is a natural step for us to
sell our shares in B2 Bredband Mobil AB to Bredbandsbolaget,"
says Framfab CEO Johan Wall.

Framfab earlier divested its subsidiaries and stakes to restore
profitability. It also posted a firs-half operating loss after
depreciation of tangible fixed assets (EBITA) of 924.1 million
Swedish krona.

The company not only operates in Sweden, but also in Denmark,
France, Germany, the Netherlands, and the UK.


FRAMFAB AB: To Sell Dimac Shares Again
--------------------------------------

Framfab said Wednesday it has entered into an agreement relating
to the sale of shares in software company Dimac AB to Jonas
Hedberg, who has plenty of experience of the information
technology industry.

In July, Framfab entered into a contract relating to the sale of
Dimac to Dropside Technologies Limited. However, Dropside has
failed to fulfill its undertakings in accordance with the
contract.

For more information on the transaction, contact CEO Johan Wall
at telephone +46 8 54 52 58 00 or email johan.wall@framfab.se


INEXA PROFIL: Insolvency Threatens 300 Jobs
-------------------------------------------

Insolvent steel company Inexa Profil AB will be closed and about
300 jobs will disappear if takeover solution will not be found
after October 28.

According to Dagens Industri/FT Information's Tuesday report,
Swedish industrial group Duroc has considered launching a
takeover bid for Inexa Profil and has contacted trade and
industry minister Bjorn Rosengren regarding a loan to carry out
the acquisition.

Rosengren is in charge of taking a decision as to whether Duroc
can obtain a loan via the ministry, but a loan takes the risk of
being blocked by the EU competition authorities.


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


CARRIER1 INTERNATIONAL: Cuts Workforce by 35%
---------------------------------------------

Pan-European bandwidth provider Carrier1 International S.A. has
initiated a reduction of its workforce by approximately 35%,
bringing the staff population to approximately 200.

According to the Telecom.paper's Wednesday report, Carrier1 will
continue to provide its full array of services and retain key
salespeople in its present markets.

In September, credit ratings agency Standard & Poor's lowered the
long-term corporate credit and senior unsecured debt ratings of
Carrier1 to CCC.

The rating action reflects the company's third consecutive
quarter of weakening operating performance, higher-than expected
cash burn rate, limited financial flexibility and strong
strategic uncertainties.


SWISSAIR GROUP: Atraxis Unit Cuts Jobs
--------------------------------------

Swiss information services company Atraxis AG, a subsidiary of
airline Swissair Group AG, will lay off 530 employees, according
to Dow Jones Newswires' report.

Atraxis' board member Stefan Leser blamed the layoffs on the
severe financial troubles that have beset Swissair following the
September 11 terror attacks on the U.S.

Swissair grounded its jets Tuesday, followed the company's Monday
decision to file for protection from creditors for some of its
units.


SWISSAIR GROUP: Bonds Make Recovery
-----------------------------------

Bonds issued by Swiss aviation group Swissair made a tentative
recovery, up from 10 cents late Tuesday, according to Dow Jones
Newswires' report.

Swissair's 4.375% 2006 and 6.625% 2010 bonds' last bid were at 16
cents.

"This is the end of the line for Swissair. The only thing to work
out now is how much will be lost by bondholders once the total
liabilities have been quantified and the assets realized,"
Commerzbank said.

Goldman Sachs analysts changed their recommendation on Swissair
to "neutral" from "underperform." It said that although prices
have fallen very significantly, it is difficult to assess the
damage to asset values caused by the grounding of its flights
early this week.


SWISSAIR GROUP: Resumes Flight Operations
-----------------------------------------

Approximately half of Swissair's flight operations have resumed
yesterday after being grounded early this week.
  
The decision to immediately resume flight operations was taken
after the Swiss government injected 450 million Swiss francs in
public funds.

The flight suspension has affected some 38,000 passengers on more
than a hundred flights.

Subsequently, the number of flights operated shall be increased.


SWISSAIR GROUP: Stock Exchange Removes Shares From Indexes
----------------------------------------------------------

The board of the Swiss Stock Exchange decided to remove today the
shares of Swissair Group AG from all indexes of the Swissindex
Family, including the Swiss Market Index, the Swiss Performance
Index and all subindexes.

The recent Dow Jones Newswires report said that the shares of
Swissair Group do not meet SWX criteria.


SWISSAIR GROUP: To Sell Volare Stake
------------------------------------

Swissair Group has decided to sell its 49.8% stake in Italian
airline Volare Group, according to Il Sole 24 Ore/FT
Information's Wednesday report.

Sources say German carrier Lufthansa AG may be interested in
acquiring the stake.

Volare has a fleet of 23 aircraft.


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


COLT TELECOM: Fidelity Secures Colt Future
------------------------------------------

Colt Telecom Group Plc, according to Reuters' Wednesday report,
has secured its future with a 400 million pounds share issue
backed by its biggest shareholder.

U.S. fund manager Fidelity has underwritten the issue of 649.4
million new shares at 62 pence each.

The British operator said the money would enable it to complete
the rollout of its European network, putting in service 32 city
networks and 18 hosting centers by the end of 2001.

Colt is expected to break even at the net profit level by 2003 or
2004. It lost 54 million pounds in the second quarter.


MARKS & SPENCER: Sale and Leaseback Deal Nears Completion
---------------------------------------------------------

Marks & Spencer is close to finalizing a multi-million-pound deal
to sell and lease back 79 of its stores to a group led by private
property company Topland, reports the Times.

The sale and leaseback is part of the retailer's plan to hand
back 2 billion pounds to shareholders by next year.

Under the terms of the deal, M&S is understood to have negotiated
break clauses on 80% of the portfolio in 2003 and 2006.

Topland is expected to ink on the deal within weeks.


SCOOT.COM: Completes Sale of Loot Business
------------------------------------------

Scoot announced Tuesday the completion of the sale of the Loot
Business to a subsidiary of Daily Mail and General Trust plc.

The resolution approving the sale of its online directory
business was unanimously passed at the EGM in September.

The company earlier said that proceeds of the sale would by used
to repay bank loans, redeem outstanding convertible debentures
and use as working capital.

Scoot.com reported first-half pre-tax losses of 171.6 million
pounds, compared to a loss of 15.6 million pounds in the same
period last year (refer to
http://bankrupt.com/misc/scoot_interim.docfor the company's  
first-half financial report).

                                  ***********

       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 Reyes, 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
remailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is $575 per half-year, delivered
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 240/629-3300.


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