/raid1/www/Hosts/bankrupt/TCREUR_Public/011214.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, December 14, 2001, Vol. 2, No. 244


                            Headlines

* B E L G I U M *

SABENA SA: SIC Owes HSBC Over EUR70MM

* G E R M A N Y *

COMDIRECT BANK: Talks With Bidders for French Unit
CONSORS AG: Appoints Dr. Wieandt as Board Chairman
EM.TV: Faces Claim From Morgan Grenfell
KIRCHGRUPPE: Dresdner Loan Eases Debt Worries
TEAMWORK INFORMATION: Court Appoints New Board Members
TEAMWORK INFORMATION: Reveals Prospects for 2001, 2002
TRIUS AG: Court Appoints Mikusinski as New Liquidator

* I T A L Y *

ALITALIA SPA: Gets EUR258MM Cash Injection From Government
FIAT SPA: No Further Cutbacks Seen in Polish Operations

* N O R W A Y *

BRAATHENS ASA: Improves Efficiency With Movex

* P O L A N D *

ELEKTRIM SA: May Miss E488MM Repayment Deadline
ELEKTRIM SA: Vivendi Will Invest 77MM Euros Before Year Ends

* U N I T E D   K I N G D O M *

BRITISH TELECOM: Buys Mediaset Stake for 106MM Euros
CONSIGNIA: May Cut 30,000 Jobs by 2003
CONSIGNIA: Union Calls for Government Action on Financial Crisis
ENRON CORPORATION: AEP Acquires European Coal Trading Business
EQUITABLE LIFE: Strike Threatens to Undermine "Compromise Deal"
HUNTINGDON LIFE: Posts a Profit Under U.S. Rules
MARKS & SPENCER: Opens Stores in India
NTL INCORPORATED: S&P Cuts NTL Rating to B-
NTL INCORPORATED: Set to Delay Sale of Mast Unit
NTL INCORPORATED: Shares Plummet on Debt Fears
RAILTRACK GROUP: AEA Technology to Advice Ernst & Young on Bids
RALITRACK GROUP: Rail Regulator Fines Railtrack Plc Stg7.9MM
RAILTRACK GROUP: Warns of Possible 2002 Closures


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


SABENA SA: SIC Owes HSBC Over EUR70MM
-------------------------------------

Sabena Belgian World Airlines SA unit Sabena Interservice Center
owes HSBC Bank PLC over 70 million euros, AFX News reports.

HSBC Bank in London has made a loan of 70.88 million euros to the
bank. Other creditors include Credit Commercial de France SA, holding
a loan of 10.06 million euros, KBC Bank SA, holding a loan of 15.29
million euros, Morgan Grenfell & Co Ltd, holding a loan of 17.25
million euros, Caisse d'Epargne Provence Alpes Corse, holding a loan
of 11.02 million euros, and Fortis Bank NV, holding a loan of 14.10
million euros.


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


COMDIRECT BANK: Talks With Bidders for French Unit
--------------------------------------------------

Comdirect Bank AG, Europe's largest online broker, is negotiating
with three potential French bidders to take over its French
operations, Comdirect SA Paris.

According to a report from Dow Jones Newswires, Comdirect expects
to finalize an agreement before the year ends and remain concerned on
the future of its 60 employees.

A few Comdirect employees in France agreed to take immediate
strike action for an indefinite period, as they became aware that
the company is about to close a deal to sell its French
operations.

Comdirect said that its back office and IT divisions in France
remain in operation without interruption.

The company added that the French unit would only be sold as a
complete unit, including customers, employees and information
technology.


CONSORS AG: Appoints Dr. Wieandt as Board Chairman
--------------------------------------------------

Online brokerage firm ConSors Discount Broker AG said that it has
appointed Dr. Paul Wieandt, executive board chairman of
SchmidtBank KgaA, as new member of the Supervisory Board.

Dr. Karl Gerhard Schmidt served written notice on December 7 to
resign as chairman of Consors Supervisory Board with immediate
effect.

Consors has been up for sale following the near-collapse of its
parent company SchmidtBank, which was rescued from bankruptcy
last month by a consortium of Germany's largest banks.


EM.TV: Faces Claim From Morgan Grenfell
---------------------------------------

EM.TV & Merchandising AG, which is divesting assets to reduce
debt and generate liquidity, said that Morgan Grenfell
Development Capital Syndications Limited and Deutsche European
Partners IV served them with a claim early this week.

The claim, which is not quantified, is based on alleged breaches
of contractual warranties contained in the purchase agreement of
March 2000.

In this agreement, the claimants received EM.TV shares against
delivery of their shares in Speed Investment Limited (indirect
participation in Formula 1 group) to EM.TV.

EM.TV is currently unable to fully evaluate the claim since
detailed particulars containing the nature, basis and quantum of
the claim will still be served.

The company rejects the claim in its entirety as unfounded on the
basis of the information currently available to it and initial
legal advice received.

For information, contact Stefanie Schusser at telephone ++49 89
99500 0 or fax ++49 89 99500 466 or email info@em-ag.de


KIRCHGRUPPE: Dresdner Loan Eases Debt Worries
---------------------------------------------

Dresdner Bank has extended a loan of about 900 million marks to
cash-strapped media group KirchGruppe, Reuters reported.

Details on the conditions of the loan extension were not
available immediately.

Banking sources said that Kirch would have to pay back the loan
by the end of the year, a move that caused worries about Kirch's
liquidity.

KirchGruppe is faced with a debt mountain analysts estimate to be
between 4 and 7 billion euros, most of which is in the form of
loans with German banks.


TEAMWORK INFORMATION: Court Appoints New Board Members
------------------------------------------------------

The Paderborn District Court has appointed a new Supervisory
Board for Teamwork Information AG in accordance with the German
Stock Corporation Law.

The appointment was made in response to the petition by the Board
of Management of Teamwork Information AG and its receiver, lawyer
Dr. Frank Kebekus.

Dr. Michael Briem, Chief Executive Officer of IPO Board AG in
Austria, was appointed as new chairman of the supervisory board.

Additional members of the board are Markus Mair, Chief Executive
Officer of Aktieninvestor.com AG in Austria, and Klaus-Dieter
Busch, co-founder of teamwork and former Board of Management
member with responsibility for sales at Teamwork AG.


TEAMWORK INFORMATION: Reveals Prospects for 2001, 2002
------------------------------------------------------

The new Supervisory Board of Paderborn-based information
management solutions provider teamwork information management AG
said it expects to have an EBIT profit of 0.5 million euros on
sales of at least 10 million euros for fiscal 2002.

The French subsidiary is not included in the sales and results
forecast for 2002 since closure of the heavily loss-making
company is currently under consideration.

With a weaker fourth quarter, the company anticipates an EBIT
loss of around 0.5 million euros on sales of approximately 10.5
million euros is anticipated in the group for 2001 (including the
French subsidiary).

As a result, the target for the current fiscal year of sales of
around 12 million euros and a balanced result will not be
achieved.

For information, contact Dr. Sabine Brummel, Investor Relations,
at telephone +49 (0)5251-5201-145, or email sbrummel@teamwork.de


TRIUS AG: Court Appoints Mikusinski as New Liquidator
-----------------------------------------------------

A German court has appointed Thomas Mikusinski as new liquidator
of Friedrichsdorf-based Trius AG, following the resignation of
liquidator Erik Wolf.

Trius AG, a provider of hardware and software solutions for data
processing and telecommunications, reported losses during the
previous 12 months and has not paid any dividends during the
previous four fiscal years.

In 2001, earnings before extraordinary items were -10.20 million
euros, or -219.9% of sales.

The company had only 4.64 million euros in sales, but its cash
and short-term investments as of April 2001 were 20.94 million
euros, or 4.5 times the annual sales.


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


ALITALIA SPA: Gets EUR258MM Cash Injection From Government
----------------------------------------------------------

State-controlled airline Alitalia SpA received a cash injection
of 258 million euros from its main shareholder, the Economy
Ministry, Dow Jones Newswires reported.

Money-losing Alitalia needed the bailout package urgently to pay
Christmas bonuses and the December wages of its 24,000 employees.

The airline is seeking more cash from the government and private
investors to survive the downturn in air travel following the
September 11 attacks in the U.S.


FIAT SPA: No Further Cutbacks Seen in Polish Operations
-------------------------------------------------------

Fiat Poland will not be affected by the restructuring plan
announced by Italian carmaker Fiat Spa, reports Dow Jones
Newswires, citing Polish unit president Enrico Pavoni.

Pavoni says previously announced job cuts of nearly 1,000 this
year had nearly been completed, eliminating any overstaffing in
Fiat's Polish operations.

Early this week, Ferrari and Maserati owner Fiat SpA said it is
cutting 6,000 jobs, closing 18 factories and selling stock to
existing investors as part of its plan to reduce net debt by 1.5
billion euros to about 6 billion euros by the end of the year.


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


BRAATHENS ASA: Improves Efficiency With Movex
---------------------------------------------

Intentia Business Group Northern Europe said Wednesday that
Braathens, Norway's largest domestic airline, would implement
Movex MRO as its new enterprise application.

In a preliminary study, Intentia and Braathens together will
produce an overall implementation strategy, including
specifications for the first phase of the actual implementation.

"We looked at most of the available suppliers. The combination of
Movex MRO's functionality and Intentia's competence tipped the
scales in Intentia's favor," Braathens Technology Director Harald
Rosnes said.

The selection of Movex is an important part of Braathens' overall
cost-savings program, Rosnes added.

Intentia has been supplying solutions to other Nordic airlines
for a number of years and has consistently developed Movex MRO to
meet the stringent requirements and needs of the airline
industry.

In the third quarter, Braathens swung to a net loss of 757
million kroner, from a net profit of 243 million kroner for the
same period last year, due to large goodwill writedowns and a
generally depressed travel sector following the September
terrorist attacks in the U.S.


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


ELEKTRIM SA: May Miss E488MM Repayment Deadline
-----------------------------------------------

Warsaw-based telecommunications, cable manufacturing, and power  
engineering conglomerate Elektrim SA said that it might not have
enough funds to settle 488 million euros worth of convertible
bonds due next Monday, Dow Jones Newswires report.

Possible bondholder filings to declare Elektrim bankrupt has
threatened Elektrim as its creditors worry about a penalty that
might be implemented on the debt riddled company.

This sent Elektrim shares reeling to a 22% loss Tuesday and 8.5%
down Wednesday on the Warsaw Stock Exchange, at 8.60 zlotys per
share.


ELEKTRIM SA: Vivendi Will Invest 77MM Euros Before Year Ends
------------------------------------------------------------

Media giant Vivendi Universal SA announced through a press
statement Wednesday that it would increase to 80% its 96-million-
euro investment for troubled Polish conglomerate Elektrim SA by
December 31, 2001.

Earlier this year, Vivendi has already provisioned 33% of its 10%
stake in Elektrim and the company aims to increase investments by
80% or 77 million euros.

The sum represents an additional 45-million-euro provision to be
expected the second half period.

For more information, please contact Antoine Lefort, Media
Relations, at telephone +33-1-71-71-11-80 or Alain Delrieu at
telephone +33-1-71-71-10-86.


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


BRITISH TELECOM: Buys Mediaset Stake for 106MM Euros
----------------------------------------------------

BT Group PLC confirmed Wednesday that it would pay 106 million
euros to increase its stake in Italian cellular operator Blu,
after fellow shareholder Mediaset SpA opted to force BT to buy
its stake.

This deal will mean Mediaset is no longer a Blu shareholder.

BT is trying to untangle itself from Blu in an effort to cut
debts.


CONSIGNIA: May Cut 30,000 Jobs by 2003
--------------------------------------

Troubled post office group Consignia may cut as many as 30,000
jobs, following a reduction of around 10,000 positions in the
semi-privatized organization's 200,000-person staff in the past
year.

"What we have said, and what remains unchanged, is that
Consignia needs to cut is cost base by 15% by April 2003 to
ensure the company gets back into profit," Consignia chief
executive John Roberts said.

He told the House of Commons Trade and Industry Select Committee
that the company hoped most of the cuts would be reached
voluntarily and through outsourcing of contracts for activities
like cleaning and catering.


CONSIGNIA: Union Calls for Government Action on Financial Crisis
----------------------------------------------------------------

The MSF has called on the government and the postal regulator to
provide financial flexibility to deal with Consignia's financial
crisis.

The union, which represents 15,000 managers and senior managers
within the company, is calling for suspension of the dividend
payment to government in view of the projected losses and also
for Postcomm to reconsider its position on a stamp price
increase.

These actions could provide some 250 million pounds short-term
financial relief to assist Consignia to address its current
problems.

Consignia's operating loss in the first half of this year reached
five times the operating loss last year to 100 million pounds. It
would also end the financial year in March with an operating
loss, and further make an operating loss next year.

Consignia chief executive John Roberts blamed much of the
company's loss in profitability on the uncertain economic climate
and the costs and delays of Britain severe rail infrastructure
problems.


ENRON CORPORATION: AEP Acquires European Coal Trading Business
--------------------------------------------------------------

U.S. energy group AEP has reportedly acquired Enron's international
coal trading operations for about US$30 million, says a report by
the Financial Times.

Accordingly, the purchase covered Enron's entire European coal
trading business based in London, including its units in Germany,
China and Australia.

Observers pegged the book value of Enron's European coal
operations at US$10 million.  However, to keep Enron's former
traders, the deal could have easily cost AEP between US$25
million and US$30 million, the paper said.

The acquisition expands further AEP's presence in Europe.  
Recently, the company also bought two large UK coal fired power
stations at Fiddler's Ferry in Cheshire and Ferrybridge in West
Yorkshire for US$415 million.

This deal is the second transaction brokered by
PricewaterhouseCoopers.  It does not include Enron's coal trading
business in Houston.


EQUITABLE LIFE: Strike Threatens to Undermine "Compromise Deal"
---------------------------------------------------------------

Equitable officials hope an imminent strike early next year won't
further undermine approval of the compromise deal it is
trying to reach with policyholders.

Confusion over the voting forms forced the firm to take out advertisements
in newspapers Tuesday to help explain the voting process.  The pending
strike by the Communication Workers Union is giving Equitable officials
the most chill, reports The Guardian.

The ballots need to be approved and sent back by January 9.  
Equitable Chairman Vanni Treves says a strike early next year
could render the ballots sent by mail useless.

Equitable mailed last week its long-awaited rescue plan to
485,000 individual policyholders and 6,000 company pension scheme
trustees, representing the interests of 600,000 members of
occupational schemes run by the company.

The compromise must be approved by policyholders and the courts
and put into effect by March 1 if it is to qualify for an
additional US$361 million payment from Halifax.

Meanwhile, according to the report, confused policyholders, who
do not know how the voting works, have swamped Equitable's
"helpline."  


HUNTINGDON LIFE: Posts a Profit Under U.S. Rules
------------------------------------------------

Drug testing company Huntingdon Life Sciences reported in the
three months to the end of September a pre-tax profit, under U.S.
accounting rules, of 0.6 million pounds, compared to a 1.7
million loss last time.

According to a report from the Financial Times, the company,
which is in the process of securing regulatory approval to shift
its stock market listing from London to New York, remained loss
making under U.K. rules.

HLS's move to the U.S. was prompted by the poor liquidity in the
U.K. shares, following the withdrawal of support from
stockbrokers and marketmakers, who were targeted by animal rights
activists.


MARKS & SPENCER: Opens Stores in India
--------------------------------------

High-street retailer Marks & Spencer, which is cutting back in
Britain and Europe, has opened news stores in Delhi and Bombay
under a franchise agreement with Indian company Planet Sports,
BBC News reported.

The new stores will initially sell clothing and bath items only,
but the franchise owner in India, VP Sharma, says that he has
long term plans to sell food and expand the network of shops into
other Indian cities.

The company has introduced new lines, sold stores and businesses
outside the U.K., and closed operations in Belgium, Germany,
Portugal, Luxembourg and the Netherlands to reverse two years of
sliding profit.

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


NTL INCORPORATED: S&P Cuts NTL Rating to B-
-------------------------------------------

Standard & Poor's has cut the credit rating of NTL Inc. by two
notches to B- from B+ on concern the broadband services company
won't be able to service its debt.

It said the outlook continued to be negative.

In November, Moody's Investors Service cut its credit rating amid
concern NTL will have to exchange some of its $17.5 billion of
debt for cash and equity.

The company this week said it would axe a further 2,000 jobs,
implement a pay freeze for managers, review of all operating and
capital expenses, and review and remove all non-essential
consultants and contractors to improve efficiency.


NTL INCORPORATED: Set to Delay Sale of Mast Unit
------------------------------------------------

Debt-laden NTL, Britain's largest cable operator, is set to
postpone the sale of its broadcast mast division, reports the
Financial Times.

The move comes as some of the company's advisers are opposed to a
sale of the profitable mast unit at a time when NTL faces heavy
interest payments on its debt of 12 billion pounds and anxieties
over its funding from 2003 onwards.

The sale of the division, valued at 1.6 billion pounds in summer,
will not take place this year as the price on offer has fallen
below 1 billion, the FT adds.

Proceeds from the sale of NTL's assets would be used to pay down
part of the company's debt.


NTL INCORPORATED: Shares Plummet on Debt Fears
----------------------------------------------

NTL shares, quoted in New York, were down 12 cents at 75 cents in
early Wednesday trading over debt fears, the Financial Times
reported.

Earlier, credit rating agency Standard & Poor's downgraded the
cable company for the second time in six months to B- from B+.
Bank debt is now rated B, cut from BB minus.

The cut follows that of Moody's Investors Service, which lowered
the rating of NTL to triple C from single B on similar concerns.

The company's loans are said to be trading at less than 80% of
face value in the secondary market, indicating investors were
worried, the FT added.

Morgan Stanley Dean Witter is thought to be the biggest lender in
the U.K. with about $600 million, followed by JP Morgan with an
estimated $500 million.


RAILTRACK GROUP: AEA Technology to Advice Ernst & Young on Bids
---------------------------------------------------------------

Restructuring AEA Technology successfully cornered a contract
recently to become Ernst & Young's special technical adviser in
the ongoing liquidation of Railtrack plc.

According to a report by the Financial Times, AEA Technology will
help evaluate potential bids for the rail infrastructure company
that is now under administration.

AEA is the same company that provides Railtrack signaling and
track safety systems. It has been restructuring its business
since last year and is currently trying to unload its engineering
software unit.


RALITRACK GROUP: Rail Regulator Fines Railtrack Plc Stg7.9MM
------------------------------------------------------------

The rail regulator has fined Railtrack PLC, the insolvent rail
network arm of Railtrack Group PLC, with 7.9 million sterling for
failing to reduce delays sufficiently.

According to a report from AFX News, the fine relates to the 12-
month period from April 1999 when Railtrack was required to cut
minutes delay per passenger train by at least 12.7% compared to
the previous period.

Over the period Railtrack reduced minutes delay by just 10%.

Railtrack is required to pay the fine to the Strategic Rail
Authority within one month.


RAILTRACK GROUP: Warns of Possible 2002 Closures
------------------------------------------------

Railtrack senior engineers has warned that some lines might be
closed in the New Year as engineers and key staff members could
resign in groups after Christmas unless measures were taken to
stem declining morale, the Financial Times reported.

Two weeks ago, a delegation of top Railtrack engineers met
administrator Ernst & Young to urge them to speed up the
replacement of top management and to give staff more certainty
about the process of administration and the future.

The government's decision to put Railtrack into administration
have demoralized key staff members, who have lost incentive to
stay with the group since their 12 million pound share options
have faded after the collapse.

                                   ***********

        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
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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