/raid1/www/Hosts/bankrupt/TCREUR_Public/011016.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

            Tuesday, October 16, 2001, Vol. 2, No. 202


                            Headlines

* B E L G I U M *

CITY BIRD: Thomas Cook Takeover Ruling Overturned

* C Z E C H   R E P U B L I C *

KOMERCNI BANKA: Societe Generale Completes Takeover

* F R A N C E *

MOULINEX: Management Backs Fidei Offer
SOFRER: Jean-Patrick Dupont Bids for Sofrer

* G E R M A N Y *

ADAM OPEL: To Announce Extent of Layoff by Next Week
DEUTSCHE TELEKOM: To Issue 2BB Securitized Bonds
HERMANN HEYE: Wins Major Contract, to Break Even by Mid-2002
LIPRO AG: De-listing Inevitable Due to Insolvency Proceeding
WIENER VERLAG: Huge Debt, Files for Insolvency
VERLAG HERMANN: To Be Broken Into Several Units

* N O R W A Y *

BRAATHENS ASA: SAS Wants to Lower 1BB-Norwegian-Kroner Bid
ENITEL ASA: Knut Ro Scrutize NKr285MM Transaction
KVAERNER ASA: Aker Maritime Owner Skeptical of Rights Issue Plan

* S W E D E N *

ADERA AB: Adera Files Belgian Subsidiary for Bankruptcy
SONG NETWORKS: Moody's Downgrades Ratings to Caa1

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

SWISAIR GROUP: Halt in Zurich Airport Operation Looms

* U N I T E D   K I N G D O M *

EQUITABLE LIFE: Confident to Reap Votes for Compromise Deal
MARCONI PLC: Buys Stake in Marconi
PSINET INC: Belgium Unit Inks New 2-year Deal With Johnson Pump
RAILTRACK GROUP: Expects Positive CTRL Holding


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


CITY BIRD: Thomas Cook Takeover Ruling Overturned
-------------------------------------------------

The Brussels appellate court has toppled the ruling which would
have forced German tour operator Thomas Cook to acquire insolvent
City Bird Holding SA, says Le Soir and FT Information Thursday.

Thomas Cook signified interest in City Bird for some time but
withdrew on its word to do so last month.

The troubled airline succeeded to secure a ruling from the
Brussels Court of Appeals to force the travel company to pay a 25
million Belgium francs per day for not honoring its obligations.

However, the court overruled to impose the fine on the German
group because the appellate court declared City Bird insolvent
the following day.  

The courts held that with City Bird bankrupt, there is no sense
of urgency.


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


KOMERCNI BANKA: Societe Generale Completes Takeover
---------------------------------------------------

Societe Generale is the new owner of Komercni Banka and was
expected to formalize its takeover in yesterday's general meeting
with shareholders, reports Prague Business Journal.

The French company finalized last week its purchase of a 60%
controlling stake in the third largest Czech bank.

SocGen paid Kc 1,755 per share, a high premium over market price
and 3.2 times book value, significantly more than investors paid
for other Czech banks.

The acquisition also marks the completion of the privatization
measures that needed to be adopted by the Czech Republic, a
strong candidate to the European Union.

The new owners will assume three of five seats of the bank's
board of directors.

Alexis Juan, a member of SocGen board's commission, will take the
helm as chairman of the board, replacing Radovan Vavra who lost
his seat.

Two members of the former board, Peter Palecka and Tomas Spurny,
retained their places.


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


MOULINEX: Management Backs Fidei Offer
--------------------------------------

Senior managers of household electrical product manufacturer
Moulinex are leaning in favor to Fidei's bid, La Tribune &
Financial Times reports.

Fidei's intends to acquire Moulinex's home appliance division,
with a global workforce of 5,400 and 2,920 in France.

Fidei, a company that specializes in turning insolvent firms
around, offered its bid on precondition that the banks raise
stocks and thereby become creditors and not owners.

Moulinex awaits the banks' decision on Fidei's offer.If the banks
fail to agree to the conditions, the commercial courts of
Nanterre will have to rule on the insolvent firm's fate.


SOFRER: Jean-Patrick Dupont Bids for Sofrer
------------------------------------------

The Nanterre commercial court will consider on Tuesday the two
bids lodged for the French mobile-network engineering specialist
Sofrer, which was declared insolvent (in rcvrship) at the end of
August.

The Financial Times and La Tribune, citing an inside source
reports that a promising bid came from Jean-Patrick Dupont, a
former employee of defense electronics group Thomson-CSF.

Dupont is offering to buy Sofrer for 8 million French francs
($1.1 million) with its existing management team and 340 of its
employees, 250 of which from France.


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


ADAM OPEL: To Announce Extent of Layoff by Next Week
----------------------------------------------------

Adam Opel AG is expected to announce the extent of the job cuts
it is planning to implement as part of its restructuring plan,
reports Sueddeutsche Zeitung.

This announcement comes in the wake of a possible strike
following the failure of the company and the workers' unions to
reach a compromise.

Management's "Project Olympia" aims to reduce production capacity
by around 15% or 350,000 cars.  The workers, on the other hand,
want to see an increase in the number of jobs in Germany.

The union is also demanding that the Opel's Speedster model and
the Astra Cabrio be produced in the German cities of Bochum and
Eisenach, rather than in England and Italy.


DEUTSCHE TELEKOM: To Issue 2BB Securitized Bonds
------------------------------------------------

Giant phone company Deutsche Telekom AG intends to issue two
billion euro ($1.8bn) asset-backed bonds in anticipation of the
euro-denominated market of 2002, Financial Times reports Friday.

The refinancing move, to be headed by Dresdner Kleinwort
Wasserstein and ABN Amro, is expected to cut Telekom debts, which
amount to 65 billion.

Securitized bond issues tend to draw higher credit rating
therefore financers expect lower yield on the debt of their
possible investments.

Deutsche Telekom expects the move to receive a AAA rating, and
said this scheme should cut debt financing costs by 20 million
euros ($18.3 million).

According to the paper, Telekom says their financing was secure
beyond 2002 and that the group had over 28.5 billion euros ($26
billion) in reserve.


HERMANN HEYE: Wins Major Contract, to Break Even by Mid-2002
------------------------------------------------------------

Creditors of Hermann Heye KG have voted to continue the company's
operation as it is set to break even by mid-2002, reports
Frankfurter Allgemeine Zeitung.

The banks have reportedly opened all lines of credit to the
insolvent hollow container glass specialist.

The company recently won a substantial order from Australian
Amcor-Leighton group, says insolvency administrator Stephan
Hoeltershinken.

Falling prices, overcapacity and the increasing use of PET
bottles forced the company to enter into preliminary insolvency
proceedings early this year.


LIPRO AG: De-listing Inevitable Due to Insolvency Proceeding
-----------------------------------------------------------

Lipro AG will likely be de-listed from the Neuer Markt as a
result of its October 5 insolvency filing, reports B6rsen
Zeitung.

Neuer Markt regulations mandate that companies in administration
must be de-listed from the segment.

The company initiated insolvency proceedings in a Berlin-
Charlottenburg court, where it presented a restructuring plan
drawn up in conjunction with Schulze & Braun.

The plan envisions spinning off Lipro's operating business into
its own profit center, while Lipro AG will be transformed into a
holding company. The software system will be renamed.


WIENER VERLAG: Huge Debt, Files for Insolvency
----------------------------------------------

With net liabilities amounting to Sch140 million, Wiener Verland
GesmbH and its two other businesses, filed for insolvency last
week, reports Wirtschaftsblatt/FT Information.

The company has total liabilities of Sch330 million compared to
assets amounting to Sch190 million only.

The two other subsidiaries that also filed for insolvency last
week were Buchbinderei Frauenberger & Co GmbH and Buchbinderei
Gerald Frauenberger.  The companies are engaged in book
publishing in Austria.

Each of the companies has offered the minimum 40% as a settlement
of their debts.


VERLAG HERMANN: To Be Broken Into Several Units
-----------------------------------------------

Publishing pillar Verlag Hermann Bauer GmbH & Co KG iL (Freiburg)
will be broken up into several entities after 60 years in
operation, reports Frankfurter Allgemeine Zeitung.

After more than three months of insolvency proceedings, it was
decided last week that Urania Verlags AG (Neuhausen, Switzerland)
will be sold to AGM AG Mueller.

AGM is subsidiary of Belgian Carta Mundi (Turnhout).

What will become of publishers Verlag Bauer and Verlag Ebertin is
yet unknown.  The two companies specialize in esoteric and
astrological publications, respectively.


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


BRAATHENS ASA: SAS Wants to Lower 1BB-Norwegian-Kroner Bid
----------------------------------------------------------

Denmark, Norway and Swedish government-owned airline SAS wants
the acquisition price of 1-billion-Norwegian-kroner ($114.6
million) bid over Norwegian airline Braathens lowered.

With the authorization from the Norwegian competition
authorities, SAS is trying to back out on earlier agreement with
Braathens in order to renegotiate the price.

SAS finance manager Gunnar Reitan confirms that the situation
between SAS and Braathens dramatically changed since after the
terrorist attacks in the U.S. last month.

Borsen and the Financial Times on Friday reports that last month,
the market capitalisation of SAS is now 30% below 7 billion
Norwegian kroners.


ENITEL ASA: Knut Ro Scrutize NKr285MM Transaction
-------------------------------------------------

Knut Ro, the liquidator of insolvent telecoms and data service
provider Enitel is scrutinizing a 285-million-Norwegian-kroner
transfer made by parent company Enitel ASA, to Enitel AS, Dagens
Naeringsliv and Financial Times reports.

Ro intends to find out whether the board acted illegally in
keeping Enitel running by transferring millions in cash at its
creditors' expense before it was declared insolvent.

On the same note, Ro is taking a closer look if the Board of
Enitel AS gave incorrect information to the market before it was
declared insolvent.

According to Ro, information that was never announced to the
market has been found among the board's papers.


KVAERNER ASA: Aker Maritime Owner Skeptical of Rights Issue Plan
----------------------------------------------------------------

It appears hopeless that Aker Maritime will come to the aid of
Kvaerner ASA and spare it from the prospect of insolvency.

Kjell Inge Rokke, the Norwegian financier and owner of Aker RGI
has expressed his skepticism over the idea of helping Kvaerner
solve its financial woes, reports Dagens Naeringsliv/FT
Information.

Aker RGI owns 62.98% of Aker Maritime, which is being counted
upon by Kvaerner to guarantee part of the new share issues aimed
at preventing the group from being declared insolvent.

Rokke says it will take more than billions of Norwegian Kroner to
resurrect the company.


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


ADERA AB: Adera Files Belgian Subsidiary for Bankruptcy
-------------------------------------------------------

Adera AB has decided to file its Belgian subsidiary Adera Belgium
NV for bankruptcy, a company statement released Friday last week
said.

"The effect of the measures above is calculated for in the
structural reserve and will not affect the over all result for
Adera," says Nils-Ove Andersson, Vice President and CFO at Adera.

Adera AB (publ) currently comprises the companies, Adera IT,
Adera Integrerad Kommunikation (integrated communication), and
Adera Nucleus. Adera IT is a holding company for Astrakan and
OOPix.


SONG NETWORKS: Moody's Downgrades Ratings to Caa1
-------------------------------------------------

Prompted by limited financial flexibility and rapidly
deteriorating liquidity cushion, Moody's Investors Service
lowered Friday the ratings of Song Networks from B3 to Caa1.

Below are the ratings affected by the recent downgrade:

- Senior implied rating at Caa1
- Unsecured issuer rating at Caa1
- $150 million 13% senior notes due 2009 at Caa1
- Euro 100 million 13% senior notes due 2009 at Caa1
- Euro 150 million 11.875% senior notes due 2009 at Caa1
- Euro 175 million 12.375% senior notes due 2008 at Caa1

The ratings remain under review for further downgrade.

Moody's noted that the Company's cash balances amounting to SEK
2.7 billion (EURO 280 million) at the end of June is now
extremely limited.

"Any deviation from expected operating cash flow estimates is
likely to lead to meaningful funding gap," says the ratings
agency.

Moody's adviced the Company to curtail growth in SG&A, integrate
its recent acquisitions immediately, and trim down certain "key
business segments" in order to achieve its financial targets.

Further review by Moody's will focus on the following points:

     (1) the availability of alternative sources of funding to
         allow the company to grow beyond EBITDA positive to
         free cash flow break-even,

     (2) ability to improve cash flow profitability in a timely
         manner so as not to jeopardize its ability to fulfil
         its debt obligations, and

     (3) the company's future strategy with respect to
         integrating recent acquisitions and organically growing
         its directly connected subscriber base.

Song Networks is an expanding data, Internet and
telecommunications operator with activities in Sweden, Denmark,
Finland and Norway.

The company provides broadband solutions for data, Internet and
voice, to large and mid-range businesses in the Nordic region.


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


SWISAIR GROUP: Halt in Zurich Airport Operation Looms
-----------------------------------------------------

Concerns are mounting over the possible halt in the operation of
Zurich Airport, one of Europe's top dozen airports, should
Swissair subsidiaries stop operating for lack of funds.

A Financial Times article says UBS and Credit Suisse, including
the Swiss government, are frantically looking for ways to address
the short-term liquidity problems of these subsidiaries to avoid
this ugly scenario.

At least two main subsidiaries are in critical need of finance in
order to keep normal operations and avoid an embarrassing halt in
airport operations.

Atraxis, which handles the information technology systems for
several airlines, and Swissport, one of the world's main ground-
handling operations badly need infusion of funds.

But foreign creditors seriously doubt the willingness of the two
Swiss banks, which have offered a SFr1.3 billion rescue package
for the ailing airline.

According to the report, these creditors are "angered by the
Swiss banks' decision to carve out the most attractive parts of
the Swissair assets for themselves."

Last week, payment of an urgently needed SFr250 million bridging
loan was delayed due to the conditions set by the banks -- that
is, they want the money to go to selected airline-related
activities and not to the loss-making airline.

Administrator Karl Wuthrich has been unable to approve the bank's
conditions on the proposed bridge loan to SAirLines, parent of
the airline division, because he believes that they might be
detrimental to the interests of the creditors, employees and
pension funds of SAirLines.


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


EQUITABLE LIFE: Confident to Reap Votes for Compromise Deal
-----------------------------------------------------------

Embattled UK mutual life assurer Equitable Life is confident it
can muster enough votes to push a compromise deal forward and
restore much-needed stability to its 20 billion pound with-
profits fund, reports the Financial Times.

According to the Company, based on the 28,000 written responses
it had noted so far, the majority appears to be in favor of the
proposal.  

Under the terms of the deal, of those policyholders who vote, 50
per cent by number and 75 per cent by value must vote in favor to
push the compromise through.

The Company has 400,000 policyholders.

With-profits policyholders without guarantees are being offered
an uplift of 2.5 percent to their funds provided they give up
rights to future mis-selling claims against the society.

Policyholders with guarantees are being offered an average
increase of 17.5 percent, provided they renounce these
guarantees.

Equitable has previously said that without approval for a
compromise, the outlook for policyholders would remain "bleak".

The Company has also warned of greater likelihood of further cuts
in bonuses if costs of honoring its guaranteed annuity liability
will shoot over 2.6 billion pounds.


MARCONI PLC: Buys Stake in Marconi
----------------------------------

Amstrad founder Alan Sugar had been buying shares in the troubled
telecom equipment provider Marconi plc, the Financial Times
reports Friday.

A spokesman for Amstrad indicates that Sugar, through his
property company Amsprop, had bought "several million shares" in
Marconi.

The move, which reflected a 40% or 8.2p to 25p and volume of more
than 220m shares, was the second heaviest in the UK market.


PSINET INC: Belgium Unit Inks New 2-year Deal With Johnson Pump
---------------------------------------------------------------

PSINet Belgium inked recently a new EUR 300,000 deal with Johnson
Pump AB, extending the service provided by the Company for
another two years, reports M2 Presswire.

The Company provides Johnson Pump AB with dedicated and secured
access to all its sites across Europe.

Johnson maintains a central ERP system that makes available up-
to-date company data such as stock information.

PSINet's dedicated access affords each of Johnson's European
branches the ability to access the company's central ERP system
securely at any time and have the real time information they
need.

Johnson Pump AB develops, manufactures and distributes pumps for
marine applications and for just about every industrial sector,
including chemical, petroleum, pharmaceutical, food and beverage,
and pulp and paper.

It has 14 sites throughout Europe, with over 600 staff members.


RAILTRACK GROUP: Expects Positive CTRL Holding
----------------------------------------------

Railtrack Group expects a positive response from the transport
ministry following a meeting last week to clarify the company's
future position in the Channel Tunnel Rail Link (CTRL) Phase 1,
reports Business Wire.

Chairman John Robinson and CEO Steve Marshall conferred with
Secretary of State for Transport Stephen Byers last Friday on
this matter.

The response was due yesterday, but news organization had gotten
no word about it as of press time.

"We put some specific proposals to Mr. Byers in relation to our
ownership of CTRL and associated financing arrangements where we
need the government's co-operation," described Robinson of the
meeting.

"We had a workmanlike discussion of the issues and the Minister
undertook to get back to us in writing on Monday with a firm
offer. He told us that he hoped to respond positively in
assisting us in releasing value from Group assets," he added.

The directors are set to review anew the financial position of
the company in the light of the Minister's offer.

"We remain as resolved as ever to stand by the shareholders,"
said Robinson, "and do not intend to accept any half measures."

CTRL is one of the UK's largest civil engineering projects. When
completed, it should significantly reduce the journey time
between London and the Channel Tunnel, and improve the link
between London and Paris/Brussels.

Construction of CTRL is in two phases. Phase 1 is a 75km
greenfield development and goes from the Channel Tunnel to just
outside the M25.

London & Continental Railways owns the freehold of CTRL.
Railtrack Group will purchase an 83-year lease on Phase 1 for
approximately 1.7 billion pounds.

The 83-year lease entitles the Group to the track access income
and is guaranteed by the government, but subject to the
continuation of Railtrack PLC's network license under the
Railways Act.

Valued in today's currency, this 83 years' worth of income is
valued at 400 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 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
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.

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
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Christopher Beard at 240/629-3300.


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