/raid1/www/Hosts/bankrupt/TCREUR_Public/011211.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, December 11, 2001, Vol. 2, No. 241


                            Headlines

* B E L G I U M *

AGFA-GEVAERT: Shares Fall on Profit Taking
LERNOUT & HAUSPIE: ScanSoft Offers Promises
SABENA SA: Belgian Companies Bullied to Invest in Successor
SABENA SA: Technics Needs Bridging Loan to Finance Social Plan

* G E R M A N Y *

DAIMLERCHRYSLER: U.S. Turnaround "Going According to Plan"
WUNSCHE AG: Subsidiaries Unaffected by Insolvency Threat

* I T A L Y *

ALITALIA SPA: Air France Denies Mulling Takeover

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

UNITED PAN-EUROPE: Cuts More Jobs in Netherlands
UNITED PAN-EUROPE: Inks Merger Deal With Vivendi

* N O R W A Y *

KVAERNER ASA: Roekke Promises $100MM to Philadelphia Yard

* P O L A N D *

ELEKTRIM SA: Moody's Cuts Rating to Caa1

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

SWISSAIR GROUP: Creditors Face Longer Wait for Payout
SWISSAIR GROUP: Meier Will Step Down as Atraxis Chief
SWISSAIR GROUP: To Complete Liquidation by Sept. 2002
SWISSAIR GROUP: Will Lay Off Indian Staff Members

* U N I T E D   K I N G D O M *

CAMMELL LAIRD: OFT Clears A&P Buy
EQUITABLE LIFE: Bosses Set to Receive Six-figure Bonuses
EQUITABLE LIFE: Compromise Deal "A Fair Offer," FSA Says
INVENSYS PLC: Schroder SSB Downgrades Stock to Neutral
MARKS & SPENCER: Pulls Out Shares From European Markets
MILLENNIUM DOME: Tops Estates Plan Super Sports Center for Dome
NTL INCORPORATED: Will Cut More Job Cuts This Week
RAILTRACK GROUP: E&Y to Oust Top Honchos


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


AGFA-GEVAERT: Shares Fall on Profit Taking
------------------------------------------

Shares in Agfa-Gevaert N.V. were down 0.34 eur, or 2.21% at
15.05, late Friday on some profit taking on technical trading and
as the market dismissed rumors that the Belgian photo-imaging
company may be a possible takeover target, AFX News reported.

Analysts said the market was skeptical that Agfa could be a
takeover target.

Analyst Bruno de Geest at Fortis dismissed the rumors that Kodak
might be interested in buying Agfa's consumer imaging division.

Agfa continues to slide deep into the red following two profit  
warnings in September and October as it reports a net loss of 7  
million euros in the first nine months of the year.


LERNOUT & HAUSPIE: ScanSoft Offers Promises
-------------------------------------------

Massachusetts-based ScanSoft Inc., a leading provider of paper-
to-digital solutions, which agreed to acquire the Speech and  
Language Technologies business of Lernout & Hauspie Speech  
Products N.V. and L&H Holdings USA Inc., offered promises when
its chairman and CEO Paul Ricci visited Belgium to meet with L&H
representatives and employees.

"ScanSoft is very excited about incorporating the Lernout &
Hauspie speech and language business with our own," Paul Ricci
said.

"Having visited several offices and met employees, we are
enthusiastic about offering employment to a number of L&H
employees in Belgium."

Ricci added that ScanSoft is working at full speed to complete an
integration plan.

A hearing before the United States Bankruptcy Court for the
District of Delaware to approve the sale of the assets to
ScanSoft began on December 4 and will continue today.

L&H, which lost nearly $10 billion in market value last year amid
an accounting scandal, filed for protection from creditors under
Chapter 11 of the U.S. Bankruptcy Code in 2000. The company is
subject to a bankruptcy proceeding in Belgium where the company
has one of its headquarters.


SABENA SA: Belgian Companies Bullied to Invest in Successor
-----------------------------------------------------------

Some of the biggest Belgian companies are complaining about being
"bullied" to invest in Delta Air Transport, the airline to take
over Belgian carrier Sabena SA, the Financial Times reports.

Belgium-based brewer Interbrew said it would not participate in
the new airline, for which industrialists Maurice Lippens and
Etienne Davignon are trying to find investors.

Davignon said 35 groups and three regional investment funds would
provide 200 million euros for the airline.

Supermarket group Delhaize has already rejected the idea, while
the government of investment fund Flanders says it still lacks
the information it needs.


SABENA SA: Technics Needs Bridging Loan to Finance Social Plan
--------------------------------------------------------------

Sabena Belgian World Airlines SA unit Sabena Technics needs a
bridging loan to cover the costs of its social plan, De
Financieel Economische Tijd reported.

"The social plan will cost a lot of money and we do not have
that," said Christian van Buggenhout, head administrator for the
bankruptcy of  
Sabena.

Van Buggenhout said the company would ask the government for a
bridging loan. He said there are a lot of investors who would be
interested but that this is a better long-term solution.

About a third of the 2,000 staff members at Sabena Technics will
lose their jobs when a new owner takes over the aircraft
maintenance and repair unit before the end of the year.


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


DAIMLERCHRYSLER: U.S. Turnaround "Going According to Plan"
----------------------------------------------------------

DaimlerChrysler AG's turnaround of its troubled US arm Chrysler
is "going according to plan", AFX News reports.

According to the company's head of personnel Guenther Fleig,
Chrysler's factories are being restructured and that 18,000 jobs
have already been cut, as planned.

Fleig added that DaimlerChrysler is ruling out redundancies for
its workers in Germany, despite the current economic weakness.


WUNSCHE AG: Subsidiaries Unaffected by Insolvency Threat
--------------------------------------------------------

Subsidiaries of Wunsche AG are not affected by the looming
insolvency of troubled Hamburg-based textile group, the
Suddeutsche Zeitung reports.

The four independent subsidiaries are fashion company Joop GmbH,
Cinque Modevertriebsgesellschaft mbH, Miles Handelsgesellschaft
International mbH and Jansen Textil GmbH.

Wunsche AG may face insolvency if it fails to present a rescue
package within the next few days.

The group has been trying to find investors since the spring of
2001, but without success.

The group was set to close 2001 with losses of 35 million
deutsche marks.


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


ALITALIA SPA: Air France Denies Mulling Takeover
------------------------------------------------

Groupe Air France has denied reports it wants to take over
Alitalia SpA and maintained it is only considering a small,
"symbolic" cross-shareholding of 2 to 3%, the AFX News reported.

Earlier, the Ansa news agency cited Italian Transport Minister
Pietro Lunardi as saying, "Air France would be interested in
taking all of Alitalia."

Other news reports said that the French airline is considering
buying between 15% and 20% of Italy's Alitalia.

"We are sticking to our statement we are considering a small,
symbolic cross-stake of between 2 to 3%", a spokesman said.


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


UNITED PAN-EUROPE: Cuts More Jobs in Netherlands
------------------------------------------------

United Pan-Europe, Europe's No. 2 cable-television provider, will
axe another 200 jobs in the Netherlands, apart from the 450
announced earlier, the Telecom Paper reports.

The 450 will have to leave the company before the end of 2001,
while 200 will lose their jobs in the first half of next year,
confirms UPC spokesman Mark Zellenrath.

UPC already announced in August that job cuts were expected as
the loss-making operator had to reorganize.

UPC said 1,000 to 1,500 jobs would be cut throughout Europe.


UNITED PAN-EUROPE: Inks Merger Deal With Vivendi
------------------------------------------------

United Pan-Europe Communications NV has sealed the merger of its
cable operations with Vivendi Universal's pay-TV unit Canal Plus
in Poland, Reuters reported.

The merger, agreed in August and originally due to be finalized
at the end of the year, was completed earlier than expected, a
statement said.

UPC owns 25% of the merged unit, and 75% by Canal Plus.


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


KVAERNER ASA: Roekke Promises $100MM to Philadelphia Yard
---------------------------------------------------------

Kjell Inge Roekke, the new chairman of Anglo-Norwegian
construction and engineering group Kvaerner ASA, pledged that his
company would invest an additional $100 million in its
Philadelphia shipyard over the next two years.

The Philadelphia Inquirer reported that the money would be spent
for equipment, training and other modifications designed to make
the new shipyard more competitive.

The company has not disclosed how much it has invested in the
shipyard.

Earlier, Kvaerner also promised its Finnish shipyard subsidiary
Masa-Yards financial backing during the coming year. Roekke
declined to say how much money Masa-Yards will need.


===========
P O L A N D
===========


ELEKTRIM SA: Moody's Cuts Rating to Caa1
----------------------------------------

Moody's Investors Service lowered the ratings of Warsaw-based
telecommunications, cable manufacturing, and power engineering
conglomerate Elektrim S.A.

Ratings affected by the downgrade are the unsecured issuer rating
from B3 to Caa1, the senior implied rating lowered from B1 to B3.

Rating of Elektrim Finance's 440.0 million 3.75% convertible
notes due 2004 was also lowered from B3 to Caa1.

The ratings continue to reflect the risks associated with holders
of the convertible notes benefiting from a put option (at 109.22%
of nominal value) exercisable on December 15, 2001.

The downgrade was also a result of the continued funding
uncertainty.

Moody's said that the Caa1 on the notes cautions that holders of
the convertible securities may not get out whole in December 2001
or receive payments in a timely manner.

Earlier, Standard & Poor's downgraded the long-term corporate
credit rating of Elektrim SA to B from BB- and retained the
ratings on CreditWatch.

The action reflects S&P's continuing concern over the group's  
imminent refinancing risk and the narrowing business focus of
Elektrim.

At the same time, the senior unsecured debt rating on guaranteed  
related entity Elektrim BV was lowered to CCC+ from B.


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


SWISSAIR GROUP: Creditors Face Longer Wait for Payout
-----------------------------------------------------

Swissair administrator warned that creditors of Switzerland's
heavily indebted flag carrier are unlikely to receive any payouts
before next September and most are likely to get only a fraction
of the 24 billion Swiss francs (US$14.5 billion) owed by the
group, the Financial Times reported.

Karl Wuthrich estimates that the six companies involved in the
six-month debt moratorium have combined assets of 4.2 billion
Swiss francs based on an orderly winding up, compared with
secured claims of 1.5 billion Swiss francs and 22.4 billion Swiss
francs of unsecured claims.

SAirGroup, the parent company, has assets of 1.6 billion Swiss
francs, and Flightlease, the group's aircraft leasing vehicle,
has 1.3 billion Swiss francs.

Wuthrich further estimates that unsecured creditors should
receive payouts ranging from 6.4% for Swissair to 11.8% for
Flightlease and 12.5% for SAirGroup.

Swiss Cargo creditors could recover up to 45% of their money.

The debt restructuring moratorium applies to SAirGroup,
SAirLines, Flightlease, Swissair Schweizerische Luftverkehr,
Swiss Cargo and Cargologic.


SWISSAIR GROUP: Meier Will Step Down as Atraxis Chief
-----------------------------------------------------

Armin Meier, CEO of Swissair Group's IT subsidiary Atraxis Group,
is leaving the company in spring.

Meier will continue to help steer the current takeover
negotiations with Electronic Data Systems Corporation and
Atraxis' subsequent integration into the network of the world's
biggest IT provider until his departure.

Atraxis is in an uncertain liquidity situation. It says it will
cut 250 jobs before EDS assumes control of Atraxis to stay
afloat.


SWISSAIR GROUP: To Complete Liquidation by Sept. 2002
-----------------------------------------------------

Swissair Group will complete its liquidation by September 2002,
the AFX News reports.

According to law firm Wenger Plattner, Swissair's bankruptcy
administrator, a creditors meeting will be convened in early
summer.

Wenger Plattner will also publish an audit in June of the degree
to which Swissair's management fulfilled its responsibilities
prior to its bankruptcy declaration in October.


SWISSAIR GROUP: Will Lay Off Indian Staff Members
-------------------------------------------------

Swiss international carrier Swissair Group will terminate all the
existing employees in India by March 31, 2002, to make way for a
new setup, the Times of India reports.

"When we close the book of accounts in March, our existing 60-
member ground staff will be dismissed. But the new company will
offer employment to a vast majority of these employees," says
Swissair north and east India manager Juerg Christen.

The new airline, the name for which will be finalized in the next
few days, will commence flights in Europe on January 1.

After the collapse of the Swiss carrier in October, flights out
of Mumbai had been reduced from seven to five a week.


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


CAMMELL LAIRD: OFT Clears A&P Buy
---------------------------------

The Office of Fair Trading has cleared the acquisition by A&P
Group Holdings Ltd of assets of ship-repair group Cammell Laird
Holdings PLC, the AFX News reported.

In August, private ship repair company A&P bought Cammell for
about 10 million pounds, but refused to give a commitment to keep
the yards open.

The Office of Fair Trading has examined allegations that the A&P
deal creates a monopoly in the British ship repair industry, as
the company will own nine of the country's biggest facilities.

Cammell Laird went into receivership in April after the loss of a
50-million-pound Italian cruise ship contract.


EQUITABLE LIFE: Bosses Set to Receive Six-figure Bonuses
--------------------------------------------------------

Equitable Life bosses are in line for six-figure bonuses even if
a crucial plan to keep the insurer solvent fails to win the
backing of members, reports This Is London newspaper.

Chief executive Charles Thomson, who earns 275,000 pounds a year,
will collect a further 275,000 pounds in March. He also gets
68,750 pounds a year for pension contributions and 15,850 pounds
in car allowance.

Chairman Vanni Treves, who earns 60,000 pounds a year, is set to
collect a bonus of 250,000 pounds.

Equitable could face insolvency if members do not approve the
compromise plan next month.


EQUITABLE LIFE: Compromise Deal "A Fair Offer," FSA Says
--------------------------------------------------------

The Financial Services Authority (FSA) said that the compromise
survival deal Equitable Life sent to policyholders is "a fair
offer."  

"The FSA is content that, in relation to the relevant groups of
guaranteed annuity rate (GAR) and non-GAR policyholders, the
level of increase to policy values is a fair offer in exchange
for the GAR rights and potential mis-selling claims that would be
given up," the city watchdog said.

Equitable Life revealed its cost for mis-selling pensions not
covered in its compromise deal could exceed 300 million pounds to
100 million pounds, more than the group said initially that it
would not exceed 200 million pounds.

Ron Bullen, chairman of the Equitable Life Policyholders Group,
said that they have to vote first to deal with the issue of
whether Equitable will survive or not.


INVENSYS PLC: Schroder SSB Downgrades Stock to Neutral
------------------------------------------------------

Investment banking firm Schroder Salomon Smith Barney downgraded
its stance on British engineering group Invensys to 'neutral'
from 'outperform' while maintaining its 'high risk' view, AFX
News reported.

Over the last two months, the issues have rallied initially
driven by the elimination of investor worries in relation to its
banking covenants and financial position.

This share price run has discounted the likely 12-18 month margin
recovery potential, and there is an emerging danger that investor
expectations of management's ability to radically alter growth
potential could in the short term be disappointed, it said.

Invensys said it would dispose its battery technology and
controls business to help it reduce its debt of 3.28 billion
pounds.

In the six months to September 30, pre-tax losses mounted to 64
million pounds, while turnover dropped from 3.71 billion to 3.56
billion as sales slowed.


MARKS & SPENCER: Pulls Out Shares From European Markets
-------------------------------------------------------

High-street giant Marks & Spencer is delisting from stock markets
in Paris, Amsterdam and Brussels due to the low amount of its
shares traded in each exchange.

According to a report from the icWales, only a very small
percentage of the group's shares are held via the listings and
M&S said the move was "good housekeeping".

The group has sold stores in France and Spain and is also
shutting its operations in Belgium, Germany, Portugal, Luxembourg
and the Netherlands as part of a restructuring drive to focus on
its core U.K. business.

M&S hopes to return 2 billion pounds to shareholders next March
from money raised through disposals and property deals.


MILLENNIUM DOME: Tops Estates Plan Super Sports Center for Dome
---------------------------------------------------------------

Developers have made an official bid to the Government to take
over Millennium Dome and turn it into a giant sports and
entertainment complex, This Is London reported.

The plan, being studied by ministers desperate to find a new use
for the multi-million pound Dome, includes an indoor ski slope,
grass tennis courts, rock climbing facilities, a scuba diving
center, a specialist sports shops and a 5,000-seat arena.

The complex would also feature a multi-screen cinema, a bowling
arcade, an Internet center, a creche and a sports bar.

The Metropolitan Regeneration Trust, part of the listed property
group Tops Estates PLC, says its proposal would release demand
within London for previously inaccessible sporting activities all
year round.

Tops is one three companies interested in the ill-fated and now
defunct visitor attraction. Quintain Estates & Development PLC
has confirmed it wants to buy the Dome in joint venture with
Australian property giant Lend Lease.


NTL INCORPORATED: Will Cut More Job Cuts This Week
--------------------------------------------------

NTL Inc., the debt-laden cable television operator, will announce
plans this week to cut more jobs to stave off fears it will go
bankrupt, the Daily Telegraph reported.

NTL has already cut 6,000 jobs and wants to accelerate that
program, the paper said. An announcement may be made today, it
said.

The company, struggling with debt of 14 billion pounds, said it
is fully funded until 2003, but by then it will be down to 5
million pounds of cash, enough for two days' interest payments.

Moody's Investors Service earlier cut the debt and preferred
stock ratings of NTL Incorporated and its subsidiaries to just
three notches above the lowest on a 21-rung scale on concern the
company will have to convert some of its approximate $11.5
billion of bonds into other securities as revenue growth falters
and interest costs rise.


RAILTRACK GROUP: E&Y to Oust Top Honchos
----------------------------------------

Railtrack administrators will oust the chairman, chief executive
and finance director of the rail infrastructure operator amid
widespread complaints that they are spending too much time
fighting the government rather than running the railway.

According to a report from the Financial Times, Ernst & Young are
expected to announce this week that chairman John Robinson and
finance director David Harding will leave the board of Railtrack,
the railway infrastructure business that was the main subsidiary
of Railtrack Group.

The removal of chief executive Steve Marshall could be delayed
until a replacement is found, the FT added.

Performance of the railways has tumbled 45% since Railtrack was
forced into administration by the government in October, and
there are continuing concerns about safety.

                                  ************

        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.

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