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         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

            Thursday, January 03, 2002, Vol. 3, No. 2


                             Headlines

* B E L G I U M *

SABENA SA: Kuijpers to Replace Mueller

* D E N M A R K *

2M INVEST: Fails to Reach Anticipated Result

* F I N L A N D *

POLAR REAL ESTATE: Ends Corporate Restructuring Program
SONERA CORP.: Opens 3G Network in Finland

* F R A N C E *

AIR LIB: Finds New Financing to Ward Off Bankruptcy

* G R E E C E *

OLYMPIC AIRWAYS: Greece Extends Sale Talks of Airline

* H U N G A R Y *

MOL RT: Sells MOL Slovensko to Slovnaft

* S W E D E N *

LM ERICSSON: Sells Test Plant Equipment for US$750MM

* U N I T E D   K I N G D O M *

BRITISH TELECOM: Likely to Lead Eurobond Gains in 2002
BRITISH TELECOM: Vodafone, BT Hold Asset Swap Talks
CONSIGNIA: Faces Leadership Vacancy
EQUITABLE LIFE: Halifax Set to Drop Equitable Brand
GLOBAL CROSSING: Attains Waiver Resolving Financial Covenants
RAILTRACK GROUP: Byers Misses Document Deadline
RAILTRACK GROUP: Holders to Consider Next Move With Government


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


SABENA SA: Kuijpers to Replace Mueller
--------------------------------------

Rob Kuijpers will replace Christoph Mueller, president of Delta
Air Transport, the successor of bankrupt Belgian airline Sabena,
on January 4, Dow Jones Newswires reports.

To recall, Mueller has been hostile to the idea of a merger
between DAT and Virgin Express, to create a new carrier based in
Belgium.


=============
D E N M A R K
=============


2M INVEST: Fails to Reach Anticipated Result
--------------------------------------------

Danish venture capital 2M Invest said yesterday that it did not
reach the anticipated profit of 100 million Danish krone for
2001.

2M Invest said it would show an estimated loss of approximately
100 million Danish krone as a result of the year's earnings on
exits, less write-downs and losses on portfolio companies
amounting to approximately 45 million Danish krone, and financial
expenses in the range of approximately 100 million Danish krone
arising from realized and unrealized capital losses.

Since November, the management's profit expectations were based
on the divestments of up to 6 additional companies, 2 of which
are publicly listed, at prices far higher than book value.

2M Invest has received several offers for the acquisition of its
shares in the listed companies. However, the management considers
the prices offered to be far from the fair strategic value of the
companies in question and has, therefore, refused the offers.

The company said it is planning to make a capital increase in the
first half of 2002.

For further information, contact President and CEO Michael
Mathiesen at telephone +45 39 45 01 00, or Chief Financial
Officer Hans Ole Larsen at telephone +45 39 45 01 00


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


POLAR REAL ESTATE: Ends Corporate Restructuring Program
-------------------------------------------------------

Polar Real Estate Corporation, a property investment company
concentrating on leasing and developing office and commercial
premises, said it ceased its corporate restructuring program on
December 31.

The Helsinki District Court confirmed the restructuring program
in 1994.

The program covered all of the debts and liabilities when the
restructuring proceedings went into effect in March 1993. The
debts and liabilities have been paid or converted into shares in
the company, with the exception of the quasi-equity bond issue
specified in the program.

The outstanding total is MEUR 3.8 and it will be paid this year,
provided there was a net profit for 2001.

Polar Real Estate Corporation also said that its shares were
removed from the Helsinki Stock Exchange observation list
yesterday.

For further information, contact President and CEO Erkka Valkila
at telephone +358 9 8259 2373 or mobile +358 50 62 050


SONERA CORP.: Opens 3G Network in Finland
-----------------------------------------

Sonera, an international forerunner in mobile communications and
mobile-based services and applications, began its new year with
the opening of its third generation, UMTS mobile phone network in
four cities in Finland, the Financial Times reported.

Finnish telecommunications equipment maker Nokia and its Swedish
rival Ericsson provided the equipment for the network covering
Helsinki, Oulu, Tampere and Turku.

The Helsinki-based company will still be using the network mainly
for its own testing, and customers are still waiting for the UMTS
handsets to become available, the FT added.

Sonera has been forced to sell off assets to pay down debt of
around 3.5 billion euros.


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


AIR LIB: Finds New Financing to Ward Off Bankruptcy
---------------------------------------------------

Air Lib has secured new financing that would allow the troubled
French airline to ward off the specter of bankruptcy.

The La Tribune/FT Information reported that Air Lib has finally
managed to generate some 61 million euros in equity capital from
a mysterious financier.

Air Lib's management was unwilling to reveal the identity of the
new investors.


===========
G R E E C E
===========


OLYMPIC AIRWAYS: Greece Extends Sale Talks of Airline
-----------------------------------------------------

Greece has extended its talks to sell the state-owned Greek
airline Olympic Airways to Australian venture capital firm
Integrated Airline Solutions (IAS) until January 31, the Business
Times reported, citing Finance Minister Nikos Christodoulakis.

The initial deadline was December 23, and talks are now entering
their final phase.

Greece, which has spent more than US$2 billion in the past 10
years to cover Olympic's debt, needs to sell the airline to stem
the losses and make it commercially viable.

IAS is bidding for a 51-65% stake in the airline, which has hit a
funding crisis due to the reluctance of international banks to
lend it money in the current environment.

Credit Suisse First Boston is the adviser to the privatization.


=============
H U N G A R Y
=============


MOL RT: Sells MOL Slovensko to Slovnaft
---------------------------------------

MOL Hungarian Oil and Gas Company said it has agreed to sell its
100% stake in MOL Slovensko to Slovnaft of Slovakia.

MOL Slovensko is active in the Slovakian wholesale and retail
fuel and lubricant market and owns 17 filling stations in the
country.

The transaction is expected to close in the first half of 2002,
following a review by the Slovakian Competition Office.


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


LM ERICSSON: Sells Test Plant Equipment for US$750MM
----------------------------------------------------

Ericsson, the largest manufacturer of equipment for mobile phone
networks, signed a sale-lease back agreement regarding test plant
equipment for US$750 million.

The sale would improve the cash position of the Group, which made
a pre-tax loss of 5.8 billion Swedish krona ($548.7 million) in
the third quarter.

The transaction includes test plant equipment used for software
testing, at sites located in Sweden and the US.

Ericsson said it would lease back the test plant equipment from
the new owner.

The facility is managed by a syndicate of financial institutions.

For further information, contact Maria Bernstrom, Director,
Investor Relations at telephone +46 705 33 47 50 or vial email
maria.bernstrom@lme.ericsson.se


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


BRITISH TELECOM: Likely to Lead Eurobond Gains in 2002
------------------------------------------------------

BT Group Plc, the U.K.'s second largest phone company, may show
the biggest gains among international corporate bonds this year
as it sells assets to cut debt, Bloomberg reported.

Slowing economic growth and falling share prices prompted BT to
tap the bond market to pay for acquisitions and investments in
new services.

The bond sales and declining profitability led to credit rating
downgrades, which prompted the company to sell assets and shares
to cut debt and maintain their credit ratings.

BT Group earlier said it plans to sell its 18% stake in Paris-
based satellite operator Eutelsat SA.


BRITISH TELECOM: Vodafone, BT Hold Asset Swap Talks
---------------------------------------------------

BT Group Plc and Vodafone Group Plc have held inconclusive
discussions about a 3-billion-pound European asset swap, the
Daily Telegraph reported.

The talks could lead to Vodafone exchanging its controlling stake
in its German fixed-line unit, Arcor AG, for BT's 26% holding in
France's second-biggest phone company, Cegetel SA.

The swap would make BT the main competitor to Deutsche Telekom AG
in Germany with 2.4 million customers, while Vodafone would be
able to increase its Cegetel stake from 15% to 41%.

Discussions between Vodafone and BT have not reached an advanced
stage. They may be revived when Ben Verwaayen takes over as BT
chief executive next month, the paper said.


CONSIGNIA: Faces Leadership Vacancy
-----------------------------------

State-owned post office group Consignia is facing a leadership
vacuum after ministers failed to find a successor to chairman
Neville Bain, whose contract ended at the end of 2001.

According to a report from The Times, the Department of Trade and
Industry will begin the process of choosing Bain's successor next
week. A firm of recruitment consultants has been appointed to aid
in the selection.

For the meantime, Consignia chief executive John Roberts will
take over Bain's responsibilities, while non-executive director
Allan Leighton will support him and chair board meetings.

In November, Consignia reported a fivefold increase in first-half
operating losses accruing to 100 million pounds.

The company is failing to meet service targets for first and
second-class mail delivery and is struggling to cut 1.2 billion
pounds from its 8-billion-pound cost base.


EQUITABLE LIFE: Halifax Set to Drop Equitable Brand
---------------------------------------------------

Halifax is reportedly ready to abandon the joint brand it
operates with Equitable Life in a bid to distance itself from the
mounting problems of the mutual life assurer, the Scotsman
newspaper reported.

The move comes after Halifax Equitable closed six of its 30
branches in November. The closure raised questions about the
company's ability to meet crucial sales targets and the ability
to repay Equitable Life 250 million pounds in 2004.

Halifax plans to stop using the Halifax Equitable brand this
year, after Equitable's policyholders vote on a compromise scheme
aimed at limiting the liabilities the society faces.

Equitable's 485,000 with-profits policyholders and 7,000
occupational pension trustees will vote by January 11 on the
compromise scheme that will allow the assurer to cap its
liabilities to holders of valuable guaranteed annuity rate
policies (GARs), estimated at about 1.5billion pounds.

If the deal is approved, Halifax will pay 250 million pounds. The
final tranche of 250 million pounds will only be paid if Halifax
Equitable meets certain sales targets that will be measured over
2002 and 2003.


GLOBAL CROSSING: Attains Waiver Resolving Financial Covenants
-------------------------------------------------------------

Global Crossing, an independent provider of global Internet and
long distance telecommunications facilities, reached an agreement
with a consortium of banks led by J.P. Morgan Chase and Citibank
for a waiver of potential violations of certain financial
covenants in the company's credit agreement with the consortium.

According to a report from the Telecom Paper, the waiver resolves
concerns that the company would be out of compliance with these
covenants at the end of the year 2001.

Global Crossing previously announced that it anticipated the need
for such a waiver that requires the company to maintain certain
cash balances in order to keep the waiver in force.

Weighed down by a heavy debt burden, Global Crossing Ltd earlier
put its assets in the United Kingdom up for grabs for US$720
million.


RAILTRACK GROUP: Byers Misses Document Deadline
-----------------------------------------------

Railtrack shareholders accused Stephen Byers of "prevaricating"
after the transport secretary failed comply with a December 31
deadline to turn over key documents explaining why he forced
Railtrack Plc into administration, the Daily Telegraph newspaper
reported.

The shareholders want documents from meetings that occurred
between Railtrack and government officials over the summer. They
also want to know precisely what advice accountants Andersen LLP
and investment bank Schroder Salomon Smith Barney (SSSB) gave
Railtrack regarding its insolvency.

Byers said he needs more time, the paper reported.

Railtrack, which managed Britain's railroad tracks and train
stations, was placed in administration in October after the
government stopped providing subsidies.

The shareholder group's steering committee includes FMR Corp.'s
Fidelity Investments, Amvescap Plc's Invesco Funds Group, and
Marathon Asset Management.


RAILTRACK GROUP: Holders to Consider Next Move With Government
--------------------------------------------------------------

Shareholders of Railtrack will meet later this week to consider
the next move in their legal dispute with the government,
reported The Guardian.

The battle came after Stephen Byers refused to bend to demands
that he hand over documents relating to his decision to place the
company in administration.

The shareholders have accused the transport secretary of
misfeasance in public office. They are calling for the release of
official papers to help prepare the case for possible court
action.

The Guardian further reported that the government hoped to be in
a position to provide a substantive response to the investors'
demands during the first half of this month.

                                    **********

       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 2002.  All rights reserved.  ISSN 1529-2754.

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