/raid1/www/Hosts/bankrupt/TCREUR_Public/011107.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, November 7, 2001, Vol. 2, No. 218


                            Headlines


* B E L G I U M *

SABENA SA: To Wind up Operations Today
SABENA SA: Two Employees File Case Against Fraudulent Insolvency

* F R A N C E *

VALEO SA: Closes Sale of Filtrauto Business
VALEO SA: Managers to Take Over UK Gearbox Plant in Buyout

* G E R M A N Y *

BANKGESELLSCHAFT BERLIN: NordLB Temporarily Drops Bid for Bank
DAIMLERCHRYSLER AG: PR Head Denies Internal Strife Behind Exit
LIPRO AG: Must Exit Neuer Markt
MET@BOX AG: Takes Back Insolvency Filing as Shares Suspend
TEAMWORK INFORMATION: Decision on Reorganization Imminent

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

KPN NV: Gains EUR632 MM in Sale of 21% Stake to Eircom
KPN NV: Unions, Management Still Deadlock on 5,000 Job Cutbacks
KPN NV: Positive Cash-flow Suspends Sale of PanTel

* N O R W A Y *

BRAATHENS ASA: SAS Takeover in Sight as Airline Bares Cutbacks

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

SWISSAIR GROUP: Atraxis Takeover by EDS Awaits Regulatory Nod
SWISSAIR GROUP: Candover Close to Inking Deal for Swissport
SWISSAIR GROUP: No Money to Fund Redundancy Plan

* U N I T E D   K I N G D O M *

BRITISH TELECOM: Internet Unit Kicks Off Satellite Service Promo
BRITISH TELECOM: TV License Request Fuels Sector Invasion Talks
MARCONI PLC: HSBC, Barclays Will Have More Security on Assets
MARKS & SPENCER: Investor Confidence Down as Sales in Sector Dip
MARKS & SPENCER: El Corte Will Offer Jobs to 800 Spanish Staff
RAILTRACK GROUP: New Pressures on Byers re Railtrack Closure
UNIQ PLC: Chief Sees Losses This Year, Unveils Cost-saving Plan


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


SABENA SA: To Wind up Operations Today
--------------------------------------

Sources privy to the plans of troubled Belgian carrier Sabena SA
told Dow Jones Newswires Monday that the airline will stop
operating today.

According to sources who requested anonymity, there would likely
be no flights today. Sabena Spokesman Wilfried Remans refused to
comment on the report when confronted by the press.

Last week, employee unions also announced that the airline is
filing for bankruptcy later this week. The announcement came
after a meeting between management and unions Friday.

The debt-riddled Belgian airline has until Nov. 8 to file a
recovery plan, which the court and its creditors need to approve.


SABENA SA: Two Employees File Case Against Fraudulent Insolvency
----------------------------------------------------------------

Two employees of Sabena, according to a report obtained from Le
Soir and Financial Times, have launched legal proceedings against
the airline's shareholders for fraudulent insolvency.

Almost 120 other members of Sabena's employees are supporting the
case against the Belgian flagship airline.

One of the employees involved in this case first filed against
Sabena's shareholders and former board of directors three weeks
ago.

The examining magistrate Jean-Claude Van Aspen now has the case.

The company's pilots have similarly threatened to take legal
action if the government fails to finance a plan to compensate
Sabena workers who will be affected by layoffs within the next
few days.


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


VALEO SA: Closes Sale of Filtrauto Business
-------------------------------------------

Valeo SA announced through a press statement Monday the closing
of the sale of the capital of its Filtrauto business to Sgefi
S.p.a., a leading Italian automotive filter supplier.

This sale was announced last June and was subject to regulatory
approvals that have now been obtained. Filtrauto will be
deconsolidated from the accounts of Valeo immediately.

Pursuant to the agreement between Sogefi and Valeo, the total
consideraton for Filtrauto amounts to 96.3 million euro ($86.4
million), including debt.

This move, which concerns approximately 2,500 people in 11
facilities, is part of Valeo's strategy to focus its resources on
core activities with leading market positions and to divest its
non-core activities.

Valeo, in the business of automotive parts manufacturing, has 156
plants, 53 Research & Development centers, 10 distribution
centers and employs 77,000 people in 25 countries.


VALEO SA: Managers to Take Over UK Gearbox Plant in Buyout
----------------------------------------------------------

Restructuring French Car parts maker Valeo SA announced Monday
that it is selling Valeo Transmission Ltd. to three managers of
the company through a management buyout.

According to Dow Jones Newswires, the sale of the UK-based
gearbox parts unit is still in line with the Company's plan to
focus on narrower range of businesses.

The unit posted E14 million ($12.5 million) in revenues last year
and employs 135 workers.

Meanwhile, the Company also announced the completion of the sale
of Filtrauto to Italian car parts group Sogefi SpA.

According to the Company, the regulatory requirements for the
sale worth E96.3 million ($86.5 million) have already been
complied with.


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


BANKGESELLSCHAFT BERLIN: NordLB Temporarily Drops Bid for Bank
--------------------------------------------------------------

German national bank NordLB is temporarily suspending its bid for
the troubled Bankgesellschaft Berlin AG bank due to the lack of
sufficient financial and business data on the latter.

According to Reuters, the national bank claims that the Berlin-
based financial institution is restricting access to important
information.

"Our experts have so far not received all the necessary
information to qualify our bid on the basis of a due diligence
examination," says Heinrich Aller, the finance minister of Lower
Saxony and the head of NordLB's supervisory board.

He says the scheduled meeting of the board today has been
cancelled as a result of this.

The Berlin bank has been embroiled in a scandal stemming from its
real estate ventures.

Recently, an unnamed source disclosed that the bank will record
E662 million ($598 million) in losses this year primarily due to
write-downs for real estate losses.


DAIMLERCHRYSLER AG: PR Head Denies Internal Strife Behind Exit
--------------------------------------------------------------

Departing DaimlerChrysler public relations chief Christoph
Walther denies he is leaving over some differences in
communications strategy within the Company.

In fact, Walther says, he is forming a new Anglo-German corporate
public relations agency in which DaimlerChrysler will be its
first customer.

The new company Walther is forming will be in partnership with
Ericsson's PR head Roland Klein, who is likewise leaving his
post, the Financial Times says.

Unlike Walther, Klein's resignation is seen as connected to the
recent controversy surrounding the early release of Ericsson's
third quarter results.

Ericsson is currently investigating the leak to Reuters News
Agency, which forced it to bare its financial results a day
earlier.

Klein has denied that his decision to leave Ericsson was related
to the leak.

"There's never a good time to leave. But after 22 years in
journalism and as a PR manager, this is a unique opportunity to
build your own business," he said.

Klein, who originally worked with Walther at DaimlerChrysler,
will join the new PR agency as its managing partner.

Walther says the agency will be based in Munich and London. Its
name and the identity of other partners will be announced at the
turn of the year.


LIPRO AG: Must Exit Neuer Markt
-------------------------------

Logistics software group Lipro AG must withdraw from the Neuer
Markt, the growth section of the Frankfurt stock exchange, in the
early part of December, the Borsen-Zeitung and Financial Times
cited German stock market sources as saying.

Lipro's exit from the Neuer Markt comes after the opening of
insolvency proceedings and upon the company's assets in violation
of Neuer Markt regulations.

The shares will still be admitted to the regulated market.

Earlier, four other companies have also been asked to withdraw
from the Neuer Markt following the opening of insolvency
proceedings.


MET@BOX AG: Takes Back Insolvency Filing as Shares Suspend
----------------------------------------------------------

At a court in Hildesheim, set-top-box manufacturer Met@box AG has
withdrawn its insolvency filing, the company said last week in a
one-line statement, a report obtained from the Dow Jones
Newswires said Monday.

According to a court spokesman, the ruling judge early Monday
extended the Met@box's deadline for withdrawal of its insolvency
application until 1500 GMT.

Met@box shares are suspended from trading on the Neuer Markt from
1550 GMT until 1650 GMT.


TEAMWORK INFORMATION: Decision on Reorganization Imminent
---------------------------------------------------------

The receiver of teamwork information management AG, the lawyer
Dr. Frank Kebekus, Dsseldorf, announced, together with the
committee of creditors of teamwork AG, he decided on November 2,
2001, to focus on two potential investors for the reorganization
of teamwork, a press release says.

One of the potential prospects is pursuing the aim of what is
termed an asset deal, as part of which the fixed and current
assets and the majority of jobs would be transferred to a new
legal entity.

The second prospect, a foreign financial investor, is in contrast
aiming to reorganize the current legal entity.

The original capital stock is to be restored by grouping 5 shares
into one share with a subsequent capital increase with granting
of subscription rights and the company's debts are to be reduced
by means of an insolvency plan.

These measures are also intended to ensure that the
qualifications for remaining in the Neuer Markt are met.

Since final verifications are still required for both
reorganization variants, the receiver assumes that a definitive
decision will be able to be announced in the second half of
November.

Investor Relations: Dr. Sabine Brummel, phone: +49 (0)5251 -
5201- 145, e-mail: sbrummel@teamwork.de


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


KPN NV: Gains EUR632 MM in Sale of 21% Stake to Eircom
------------------------------------------------------

Royal KPN NV Monday said it will receive 632 million euro ($567.1
million) in cash from the surrender of 21% of its stake in Irish
telecom group Eircom PLC, Dow Jones Newswires said Monday.

Following the approval of Irish antitrust authorities on
Valentia's takeover of former state-owned telecom monopoly
Eircom, KPN announced Valentia will declare the offer
unconditional within two weeks.

Earlier, KPN sold its shares in Eircell to Vodafone PLC for 572
million euro ($513.6 million).


KPN NV: Unions, Management Still Deadlock on 5,000 Job Cutbacks
---------------------------------------------------------------

The planned 5,000 job cutbacks at troubled Dutch telecom operator
KPN is still unresolved, a union official negotiating with
management told Reuters Monday.

According to employee union head Ron Harmsen, both sides are
still deadlock over the issue on how much the workers will
receive in severance fees.

"So far both sides only agreed on the necessity of relocating
fired employees in other jobs," said Harmsen, whose union
represents 3,000 out of 35,000 KPN employees.

Harmsen admits the chances of getting what they want is slim, but
says the union will try to squeeze the best financial settlement
out of the Company.

KPN spokesman Bram Oudshoorn said: "We do have some money, but
less than required under the initial (January) social agreement.
We need a more limited form of settlement."

Harmsen says the choice is either to dismiss 5,000 people now or
all 35,000 employees later.

Management and representatives from the four unions at KPN began
their third round of negotiations on the cutbacks Monday.  The
Company wants to implement the plan next year.


KPN NV: Positive Cash-flow Suspends Sale of PanTel
--------------------------------------------------

PanTel's Chief Operating Officer Csaba Toro announced that the
sale of telecommunications group Royal KPN NV's Hungarian telecom
service provider PanTel Rt. is temporarily suspended, the Dow
Jones Newswires source reports.

For the first time in the company's history, PanTel's cash-flow
was positive in August.

KPN is expected to break even on its 2001 earnings before
interest, tax, depreciation and amortization, a stronger showing
than originally planned, Toro disclosed.

According to the business daily Napi Gazdasag, KPN's suitors
include Telenor of Norway and Vivendi of France which offered too
low a price.


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

BRAATHENS ASA: SAS Takeover in Sight as Airline Bares Cutbacks
--------------------------------------------------------------

The takeover of struggling Norwegian carrier Braathens by rival
SAS nears completion as the former announced Monday its plan to
layoff a fifth of its workforce and reduce capacity by the same
amount.

The Financial Times says these cutbacks were originally demanded
by SAS as a condition before it proceeds with its NOK1.1 billion
($124 million) takeover bid.

The troubled carrier says it would make between 600 and 800 of
its 4,000 employees redundant and ground almost a third of its
fleet of 30 aircraft, reducing the number of seats by 20%.

Meanwhile, the Company also announced that departing CEO Arnes
Jenses will be replaced by his number two Vidar Meum.


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


SWISSAIR GROUP: Atraxis Takeover by EDS Awaits Regulatory Nod
-------------------------------------------------------------

Only regulatory approvals remain in the way for the formal
takeover by Electronic Data Systems Corporation of troubled
Swissair booking subsidiary Atraxis, AFX News says.

A statement released by Swissair Group Monday said the takeover
is already sealed and that Atraxis clients can now rest assured
of continued service from the booking unit.

According to the statement, the agreement with EDS will afford
the latter "strong European base" for its airline reservations,
airport management, and air transport information services.

Terms of the takeover will not be disclosed, the same statement
said.


SWISSAIR GROUP: Candover Close to Inking Deal for Swissport
-----------------------------------------------------------

Negotiations between Candover Investments Plc and Swissair Group
are close to reaching a deal that would transfer control of
Swissport to the former, reports Reuters.

"It is progressing and we would hope that the transaction would
be capable of being announced shortly," says Candover director
Charlie Green of the negotiations.

The ground-handling unit is one of three vital subsidiaries of
Swissair that need immediate cash injection or investors in order
to avoid a second grounding of Swissair planes.


SWISSAIR GROUP: No Money to Fund Redundancy Plan
------------------------------------------------

Neither the Swiss government nor the banks are prepared to shell
out the CHF100 million ($60.9 million) needed to finance the
redundancy plan for some 4,500 employees of Swissair Group.

According to Le Temps/FT Information, the employees only learned
of this recently.

This has become apparent as observers point out that the
conditions for the group's protection require for its financial
problems to be solved subsidiary-by-subsidiary.

Unfortunately for the workers, only three subsidiaries currently
possess the financial resources to pay for their redundancy
plans.

Meanwhile, a Swissair official has warned unions against
conducting strikes, as it will only raise the number of job cuts
to 25,000.


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


BRITISH TELECOM: Internet Unit Kicks Off Satellite Service Promo
----------------------------------------------------------------

Restructuring British Telecom launched Monday its GBP2 million
($2.9 million) promotional campaign for its high-speed Internet
Services via satellite, reports The Times.

The campaign is being directed in Northern Ireland and remote
parts of Scotland that are out of reach of existing broadband
services.

According to the report, the satellite service aims to provide
small businesses in Northern Ireland and the Highlands and
islands of Scotland with Internet access.

The Company's Internet service provider arm Btopenworld expects
to sign its first customer by the end of the month, the report
says.

The satellite service, which is a joint venture with Gilat and
Highlands and Islands Enterprise, will be rolled out across the
United Kingdom next year.


BRITISH TELECOM: TV License Request Fuels Sector Invasion Talks
---------------------------------------------------------------

British Telecommunications fueled speculations lately that it
would push through with its plan to enter the broadcasting
industry when it applied for license last week.

The Financial Times says the restructuring British telecom giant
submitted its application to UK's Independent Television
Commission Friday.

According to the report, the Company has held talks with other
broadcasters such as Carlton and Granada recently for a possible
content-sharing deal.

If this venture proves successful, it would allow the Company to
offer services such as video-on-demand and multi-channel TV using
existing copper phone lines, which are upgraded with a high-speed
Internet technology known as ADSL.

The Company, however, clarified that it had no immediate plans to
launch commercial services, saying that the application was
largely a formality to give it greater flexibility in the future.


MARCONI PLC: HSBC, Barclays Will Have More Security on Assets
-------------------------------------------------------------

A local paper claims Marconi's principal banks HSBC and Barclays
will end up having more security over the Company's assets should
it fall into liquidation.

The Sunday Business cited the two syndicates hammering out
Marconi's debt restructuring in making the claim, AFX News said.

Accordingly, the restructuring plan will affect euro-denominated
bond issue with a face value of GBP930 million ($1.3 billion).

The report did not include a reaction from the group of
bondholders who earlier hired an American law firm to ensure they
get a seat in the negotiating table.

The group, which holds $536 million worth of bonds, are concern
the banks will get an upper hand over the bondholders as a result
of their leading role in the talks.

A meeting requested by the group with management three weeks ago
was ignored.


MARKS & SPENCER: Investor Confidence Down as Sales in Sector Dip
----------------------------------------------------------------

Shares of troubled British retailer Marks & Spencer slid by 3.5%
Monday as investors believe it will not escape the same problems
that recently hit other clothing retailers, says Reuters.

According to the report, the Company's stock was the most traded
in the market Monday, but also one of the biggest losers.

Analysts say the investors' actions stem from fear that the
Company won't be able to sustain its recovery in a noticeably
deteriorating market.

In recent weeks, retailers like Debenhams, Arcadia and John Lewis
have seen a slowdown due to weakening consumer confidence and
unusually warm weather, which has hit sales of winter goods.


MARKS & SPENCER: El Corte Will Offer Jobs to 800 Spanish Staff
--------------------------------------------------------------

Marks & Spencer Director David Norgrove says El Corte Ingles, the
retailer that recently bought its Spanish outlets, will offer the
Company's 800 employees in Spain new jobs.

He said finding jobs for the employees had been the priority of
the Company before it agreed to sell its nine stores to the
Spanish retailer.

Meanwhile, the Company says negotiations -- believed to be with
El Corte -- is still ongoing regarding the sale of two stores in
Portugal.

The Company is under pressure to completely withdraw from
continental Europe by the end of December, which it promised
investors.

Spanish operations will cease by December 15.  Prior to the
Spanish deal, the Company had also reached agreement to sell its
18 stores in France, closed two in Germany, announced plans to
close four in Belgium and sold its Dutch outlet.


RAILTRACK GROUP: New Pressures on Byers re Railtrack Closure
------------------------------------------------------------

UK's Transport Secretary Stephen Byers was planning to shut down
Railtrack plc, a report from the Sunday Times and Financial Times
reports, long before he announced the closure of the company, an
internal document has revealed.

The news is expected to anger shareholders because it implies
that Byers, in the knowledge that the company was heading for
closure, allowed shareholders to buy shares in Railtrack plc.

The Railtrack insolvency order registers a fax copy date of
September 28, indicating that Byers finalised his decision
earlier than his October 5 claim.

This development is expected to support the claim shareholders
have on Railtrack plc.


UNIQ PLC: Chief Sees Losses This Year, Unveils Cost-saving Plan
---------------------------------------------------------------

Uniq Plc Chairman Nigel Stapleton unveiled Monday a cost cutting
plan that will save GBP30 million ($43.7 million) a year and
arrest the steep rise of its losses, says the Financial Times.

Stapleton bared the plan as he admitted that second half losses
will be below last year's figures.

He said three elements would contribute towards the cost savings
that should amount to about o17.5m in the next financial year:

     (1) the manufacturing excellence program should yield half
         its annualized GBP15 million ($21.8 million);

     (2) the concentration of European procurement should
         produce about half its GBP10 million ($14.5 million);
         and

     (3) the overhead cost reduction plan should contribute GBP5
         million ($7.2 millon).

Plunging sales in the UK yogurt market and the impact of
restructuring in its French business contributed to a steep
increase in first-half losses, says Stapleton.

Turnover from continuing operations was up slightly, though, at
GBP493.3 million ($719.6 million) compared to GBP481.7 million
($702.7 million) for the same period last year.

The goodwill and exceptionals, however, widened the pre-tax
deficit to GBP28.2 million ($41.1 million) in the six months to
September 29 against a loss of GBP2.5 million ($3.6 million) in
the comparable period.

Analysts are forecasting full-year pre-exceptional profits to be
GBP20 million ($29 million).

Meanwhile, Stapleton says the replacement of erstwhile CEO Terry
Stannard will be announced early next 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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