/raid1/www/Hosts/bankrupt/TCREUR_Public/011031.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

            Wednesday, October 31, 2001, Vol. 2, No. 213


                            Headlines

* B E L G I U M *

FLV FUND: Shareholders Approve Business Plan
LERNOUT & HAUSPIE: U.S. Court Approves Auction Plan

* F I N L A N D *

SONERA CORP.: Subsidiaries to Cut Costs

* F R A N C E *

EUROPEENNE D'EXTINCTEURS: Court Gives Six-Month Respite
MOULINEX SA: Italian Groups Interested in Brandt
SOFRER: Goes Into Liquidation

* G E R M A N Y *

BIODATA INFORMATION: Seeks Compensation From Ex-Board Members
COMPUTEC MEDIA: Finds Partner for French Subsidiary
KARL FIXEMER: Files for Insolvency
PRODACTA AG: Court Appoints New Supervisory Board Member
TELESENSKSCL AG: Cuts Jobs to Reduce Cost

* I T A L Y *

ALITALIA-LINEE: Board Discusses New Business Plan

* N O R W A Y *

KVAERNER ASA: Posts Third-Quarter Loss of NOK613MM
KVAERNER ASA: Yukos Agrees to Save Kvaerner

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

SWISSAIR GROUP: Ground-Handling Unit Near Sale

* U N I T E D   K I N G D O M *

CLAIMS DIRECT: Offers 3-MM-Pound Package to Executives
COLT TELECOM: Shares Rise on C&W Bid
KINGFISHER PLC: To Raise 1BB Pounds in Property Sale
MARCONI PLC: Prepares Payout to Ousted Chief
PHOTOBITION GROUP: Offers Management Restructuring
RAILTRACK GROUP: Bondholders Prepare for Cash Claims
REDSTONE TELECOM: Founder Takes a Bow
UNIQ PLC: Private Equity Firms Eye Food Company


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


FLV FUND: Shareholders Approve Business Plan
--------------------------------------------

A majority of the shareholders of FLV Fund approved last Friday
the proposed business plan by the company's statutory manager.

Under the plan, the Flemish investment fund will not invest in
new ventures, will closely follow up on its 39 active portfolio
companies, and will wind-up its activity on December 31, 2004.

The business proposal also envisions a team of ten, where six
will be in the investment team and four in the support team.
Available resources will be kept in line with the current and
expected workload to guarantee the availability of adequate
professional means.

Furthermore, FLV Fund will initiate the formal procedure for a
decrease of the share capital of the company to allow a first
refund to the shareholders. When the proposed capital decrease is
approved, approximately 28 million euros should allow for a
refund to the shareholders of 1.36 euro per share.

The close association of FLV with troubled vocal technology
specialist Lernout & Hauspie Speech Products NV has made it
difficult to continue operations.

For more information, contact Piet Vandermeersch, Managing
Director, at +32 (0) 477/57 28 37


LERNOUT & HAUSPIE: U.S. Court Approves Auction Plan
---------------------------------------------------

A U.S. bankruptcy judge agreed Monday to a plan to auction the
core speech and language technology assets of bankrupt Lernout &
Hauspie Speech Products NV in mid-November.

Judge Judith Wizmur also informally approved sale of L&H's
medical-transcription business to MedQuist Inc. for $25 million.

The judge delayed consideration of a proposal regarding the
future of Dictaphone, which L&H acquired last year, pending
further negotiation on certain matters.

The Dictaphone proposal involves plans for that business to
continue operating, with proceeds going to various creditors.

Judge Wizmur informally agreed to an auction process for Lernout
& Hauspie's speech and language technology division - comprised
of eight businesses - that gives bidders until November 12 to
submit bids for a November 16 auction.

A Belgian court recently declared L&H insolvent and appointed
five curators to oversee its liquidation.


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


SONERA CORP.: Subsidiaries to Cut Costs
---------------------------------------

Sonera Corporation said Monday its subsidiaries Sonera SmartTrust
Ltd and Sonera Zed Ltd would specify their business focuses and
start employer/employee negotiations with their personnel to cut
the costs of its service businesses.

Specifically, Sonera SmartTrust Ltd will focus more clearly on
service platforms sold to mobile operators and on smartcard and
SIM card based Internet security solutions due to the changed
market conditions.

It is estimated that the personnel reduction will affect about
150 to 160 people in Finland, Sweden, the U.K., Germany and the
U.S. The savings achieved with the personnel reduction is
estimated at 25 million euros.

On the other hand, Sonera Zed Ltd would wind up its business on
markets where the transaction volumes of the zed services have
not reached satisfactory targets.

The aim is to close down or sell the operations in Turkey, the
Netherlands and the USA by the end of this year, and focus on
operations in Finland, the UK, Germany, Italy, the Philippines
and Singapore.

The company will also cut about 130 people, including about 55
employees in Finland.

For further information, contact Sonera SmartTrust CEO Antti
Vasara at telephone +358 2040 54057 or e-mail
antti.vasara@smarttrust.com, or Sonera Zed Executive Vice
President and CEO Juha Varelius at telephone +358 2040 59510 or
e-mail at juha.varelius@sonera.com.


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


EUROPEENNE D'EXTINCTEURS: Court Gives Six-Month Respite
-------------------------------------------------------

French fire extinguisher manufacturer Europeenne D'Extincteurs
recently acquired a six-month reprieve from the Lyons commercial
court, the La Tribune and FT Information confirms.

Europeenne d'Extincteurs' two leading shareholders, Sogem France
and the Atenor Group of Belgium, refused to recapitalize the
group after it announced at the beginning of the month that its
turnover fell by 13% in the first half of 2001.

The debts of the Lyons-based group now amount to almost 91.5
million euros for 51 million euros worth of equity capital.

The group, the second-largest player in the European field, filed
for insolvency early last week. Its shares were suspended since
October 11.


MOULINEX SA: Italian Groups Interested in Brandt
------------------------------------------------

Italian groups Candy and Merloni have officially declared their
interest in Brandt, part of bankrupt French home appliance
manufacturer Moulinex, Les Echos/FT Information reported Monday.

Candy, which has a turnover of 1 billion euros, owns the brands
Candy, Rosieres, Hoover and Iberna.

Merloni owns Indesit, Ariston and Scholtes.

All bidders, which also include General Electric, Electrolux and
Whirlpool, have to submit their offers by November 9.

Brandt employs 11,026 workers, including 5,311 in France.


SOFRER: Goes Into Liquidation
-----------------------------

The Nanterre commercial court placed the French mobile-network
engineering specialist Sofrer (Societe Francaise d'Engineering et
de Representation) in liquidation on Friday, reported the La
Tribune/FT Information.

The move comes after the failure of two recent takeover bids, one
of which was made by former Thomson Armement executive Jean-
Patrick Dupont.

The company was declared insolvent in August after its leading
shareholder, the Anglo-Saxon firm Spectrasite, withdrew its
support.

Sofrer employees attribute the company's demise to poor
management rather than market conditions.


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


BIODATA INFORMATION: Seeks Compensation From Ex-Board Members
-------------------------------------------------------------

IT security provider Biodata Information Technology AG, according
to Dow Jones Newswires, is claiming $4.4 million in compensation
from its former board members, Tan Siekmann and Stefan Schraps.

The compensation claim is based on inconsistencies in a large
Australian order.

The information technology company has laid off 60 employees in
Germany and Switzerland as part of a restructuring.

Its unprofitable Munich unit, Biodata Security Maintenance GmbH,
has declared itself insolvent.

The federal supervisory office for securities trading,
is investigating whether Biodata Information is guilty of having
misled its own shareholders.

BAWe is also looking into suspicions of share-price manipulation
and insider trading.


COMPUTEC MEDIA: Finds Partner for French Subsidiary
---------------------------------------------------

Computec Media AG has succeeded in finding a strategic partner
for its subsidiary in France, the Frankfurt Stock Exchange
reported Monday.

Thus, a 75% holding of the shares in Computec Media France S.A.
will be sold to a French publishing enterprise on November 1.

The new partner in publishing is going to share in the costs of
restructuring the company.

Because of the loss of more than half of its stated capital, the
Board of Directors is immediately convening a Shareholders'
Meeting in order to announce this loss at it.

The revaluations do not have any effect on the liquidity.

Computec Media AG's major shareholders have resolved to improve
the structure of the balance sheet by means of a waiver of loans
outstanding in the form of a debtor warrant bond on loans granted
to the company of approximately 18,3 million marks.

For more information, please contact Joachim Schneider, Financial
Controller, at telephone +49 (0) 911 2872-147, fax +49 (0) 911 28
72-333, or E-Mail joachim.schneider@computec.de


KARL FIXEMER: Files for Insolvency
----------------------------------

Its inability to pay has moved the German haulier Karl Fixemer
GmbH & Co. KG to file for insolvency, the Frankfurter Allgemeine
Zeitung/FT Information reported.

Recent arrests with the sons of the company's founders, Christian
and Joachim Fixemer, the have led its banks to cancel around 18
million marks of credit.

Karl Fixemer had a turnover of 300 million marks last year.


PRODACTA AG: Court Appoints New Supervisory Board Member
--------------------------------------------------------

The competent county court of Karlsruhe appointed Frau Gaby Radl
as member of the supervisory board of software maker Prodacta AG
effective October 26.

Frau Gaby Radl succeeds Dr. Hartwig Graf von Westerholt.

In August, Prodacta filed for insolvency proceedings, following
the failure of negotiations with its shareholders and potential
investors.


TELESENSKSCL AG: Cuts Jobs to Reduce Cost
-----------------------------------------

The TelesensKSCL Executive Board has decided to cut approximately
350 out of 1,100 jobs throughout the software company.

The reduction of employees is part of TelesensKSCL's overall
restructuring program aimed at making them a leaner organization,
centralizing its functions, and streamlining its product
portfolio and to substantially reduce the overall costs of the
company.

The Executive Board will publish further information relating to
the restructuring plan at the end of November.

TelesensKSCL is in negotiations with investors and creditors to
agree on a financing plan and payment schedule in order to secure
the company's liquidity and avoid the need for insolvency
proceedings.

For further information, contact Nina von Moltke through email
investor@telesenskscl.com


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


ALITALIA-LINEE: Board Discusses New Business Plan
-------------------------------------------------

The Board of Alitalia met again early this week to discuss a new
business plan that includes layoffs, sharp cost-cutting measures
and possible private investment in the state-controlled airliner,
Dow Jones Newswires reported.

The cost-cutting measures are expected to include reducing routes
and grounding aircraft.

The plan is also expected to include the sale of some of
Alitalia's non-core assets to raise revenue.

The government, which holds 53% of Alitalia, is expected to
review the plan on November 5 and decide by mid-November.

If the plan is implemented, around 5,200 people could lose their
jobs.


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


KVAERNER ASA: Posts Third-Quarter Loss of NOK613MM
--------------------------------------------------

Anglo-Norwegian engineering and construction group Kvaerner
reported Monday its operating loss before exceptional items for
the nine-months to September 30 was 613 million Norwegian krone,
resulting in a nine-months year-to-date operating loss of 182
million Norwegian krone.

The third quarter result was heavily affected by the need to make
substantial new provisions in the operating divisions, together
with write-downs in the book values of certain investments and
financial assets.

Group turnover in the third quarter was 11.4 billion Norwegian
krone, producing a nine-months year-to-date figure of 33 billion
Norwegian krone.


KVAERNER ASA: Yukos Agrees to Save Kvaerner
-------------------------------------------

Kvaerner staved off bankruptcy when Russian oil company Yukos
agreed to a 103.7 million pound rescue package, the Guardian
newspaper reported Monday.

The lifeline will allow Kvaerner to survive for a week and give
the company more time to complete negotiations with banks and
other creditors on restructuring 34.8 million pounds of debt.

Yukos, a major Kvaerner shareholder, also said it would complete
the purchase of two Kvaerner service units in London.

Kvaerner said last week it was risking bankruptcy unless it
managed to raise more money.


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


SWISSAIR GROUP: Ground-Handling Unit Near Sale
----------------------------------------------

U.K.-based private equity group Candover Investments PLC is close
to purchasing Swissair's ground-handling unit Swissport,
according to Dow Jones Newswires' Monday report.

Financial details were not disclosed.

"The sale will likely be closed in the first two weeks of
November," Swissport spokesman Stephan Beerli said.

Swissport is having liquidity problems because Swissair has not
paid bills for weeks.


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


CLAIMS DIRECT: Offers 3-MM-Pound Package to Executives
------------------------------------------------------

Claims Direct chief executive Ronnie Henderson has offered an
exit package of up to 3.3 million pounds for 180 franchised
claims managers, reported the Financial Times.

The UK-based personal injury specialist is seeking to rebuild its
reputation and resolve long-standing problems after it was
undermined by legal changes and negative publicity.

The company said the offer, including the "immediate and
attractive" cash payment, would run until the end of November.

Many claims managers have been pressing for a financial deal to
enable them to leave the business that is facing a lawsuit from
disgruntled franchise managers and an inquiry from the department
of trade and industry.

A group of shareholders co-ordinated by law firm Class Law is
also considering bringing a case against former directors and
flotation advisers of Claims Direct.


COLT TELECOM: Shares Rise on C&W Bid
------------------------------------

Shares of cash-strapped British operator Colt Telecom rose 12% on
Monday on speculation about a bid from Cable and Wireless, the
Financial Times reported Monday.

Colt shares rose 15p to 137p, valuing it at 963 million pounds.

Earlier this month, Colt was trading at a low of 62p. The shares
began rebounding when US fund manager Fidelity backed a 400-
million-pound share issue to help bridge Colt's funding gap.

Colt, which dropped from the FT-SE 100 index of leading U.K.
companies last month, is one of the worst performing stocks this
quarter on the FT-SE 350 Telecommunication Services index.


KINGFISHER PLC: To Raise 1BB Pounds in Property Sale
----------------------------------------------------

Retail group Kingfisher plans to raise about 1 billion pounds via
a sale and leaseback of the freeholds to its B&Q stores in the
U.K., the Sunday Telegraph reported.

The amount raised will be used to finance the expansion of its
global do-it-yourself operations and increase the rollout of its
B&Q Warehouse franchise in the country.

The planned sale and leaseback will also include the freeholds to
its Castorama operations in France.

Kingfisher, which demanded the replacement of CEO Sir Geoff
Mulcahy and other equally aging members of the board, recently
reported an interim loss of 355 million pounds.


MARCONI PLC: Prepares Payout to Ousted Chief
--------------------------------------------

Telecommunications group Marconi is believed to be preparing to
pay about 500,000 pounds in pension benefits to ousted deputy
chief executive John Mayo, the Financial Times reported Monday.

The payment would come in addition to the 600,000 pounds the
company has paid Mayo.

Marconi, however, denied a suggestion that Mayo might receive a
pension benefit of 950,000 pounds. It described that figure as
"wildly inaccurate".


PHOTOBITION GROUP: Offers Management Restructuring
--------------------------------------------------

Graphics company Photobition has offered to strengthen its senior
management to allay creditors' concerns, the Financial Times
reported Monday.

It is understood that Photobition has told its creditors it would
seek to replace chairman Richard Reynolds with a "new, hands-on
person". A candidate had not been identified yet.

Two weeks ago, Stephen Smith resigned as finance director as the
company warned of an underlying full-year loss and told investors
that management buy-out talks had collapsed.

Photobition, which has issued three profit warnings this year, is
expected to issue today its results for the year to June 30, as
well as an update on its debt restructuring.

The company was worth 2.7 million pounds at Friday's close, down
from 532 million pounds in March last year.


RAILTRACK GROUP: Bondholders Prepare for Cash Claims
----------------------------------------------------

Railtrack bondholders have appointed U.S. law firm Bingham Dana
to see whether they have rights to claim the cash and other
assets set aside to compensate shareholders for the collapse of
the rail company, a report from the Telegraph said.

The bondholders believe that assets may have been passed from the
main subsidiary, which went into administration early this month,
to the parent group since privatization.

Ministers are currently investigating whether the 370-million-
pound cash should be paid out to shareholders.


REDSTONE TELECOM: Founder Takes a Bow
-------------------------------------

Redstone Telecom founders Simon Slater-Thomas resigned as
chairman of the telecoms carrier to set up a new telecoms
company, Reality Network Services, reported the Financial Times.

Non-executive director Andrew Stafford-Deitsch will replace
Slater-Thomas on a temporary basis, until a permanent successor
is found.

According to Redstone secretary Chris Van Den Heuvel, Slater-
Thomas' departure triggered no pay-off, bonus or share options.

Redstone Telecom was saved from liquidation in July when 2.6
billion new shares were placed at just 1p, compared with last
year's high of 949p.


UNIQ PLC: Private Equity Firms Eye Food Company
-----------------------------------------------

Two private equity houses have targeted to take over British food
company Uniq, formerly known as Unigate.

According to the Sunday Times newspaper, HSBC is in talks with
PPM Ventures and Electra about backing a management buy-out,
while a member of Uniq's senior management is understood to want
to take the company private.

A number of other financial buyers, including Legal & General
Ventures and ABN Amro, are also considering making an approach to
the company after the release of its interim results on November
5.

Candover may also enter a bidding race for the firm.

The company recently sold its loss-making pig meat business
Malton for 33.5 million pounds.

Management blamed the shortfall on a slower-than-expected
recovery from its underperforming French operations last year.

                                   **********

     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
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Information contained herein is obtained from sources believed to
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The TCR Europe subscription rate is $575 per half-year, delivered
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