/raid1/www/Hosts/bankrupt/TCREUR_Public/020109.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, January 09, 2002, Vol. 3, No. 6


                            Headlines

* C Z E C H   R E P U B L I C *

ZETOR: Attracts Foreign Investors

* F R A N C E *

LEADER INDUSTRIES: Canadian Eyewear Firm Goes Bankrupt

* G E R M A N Y *

BAYER AG: Sells Chemical Units to Reduce Debt
BROKAT AG: DataDesign Takes Over Brokat Unit
CONSORS AG: Soars After HVB Interest
EDEL MUSIC: Chief Haentjes Faces Asset Sell-Off
WUNSCHE AG: Shareholder Rejects Rescue Plan

* I R E L A N D *

FUJITSU LTD: Will Liquidate Printer Factory in Ireland

* N O R W A Y *

KVAERNER ASA: Agrees to Restructure Debt

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

SULZER MEDICA: Court Delays U.S. Settlement
SWISSAIR GROUP: Pilots Dispute With Crossair Deepens

* U N I T E D   K I N G D O M *

ANTISOMA PLC: Hits Funding Snag for Lead Drug
BRITISH TELECOM: Aims for Move Into Broadcasting
BRITISH TELECOM: Appoints New Non-executive Directors
CEDAR ENTERPRISE: Alchemy Offers 3.8MM Pounds to Rescue Cedar
CLUBHAUS PLC: Defaults on Debt Interest
CLUBHAUS PLC: Seeks Survival by Converting Debt
EQUITABLE LIFE: Sets Sights on Equities Binge
FAMOUS ARMY: Leisure Chain Goes Into Administration
FUTURE NETWORK: Sells Polish Business to Cut Debt
INVENSYS PLC: Sells Energy Storage to Reduce Debt
MARKS & SPENCER: Hopes to Revive Fortune With New Collection
P&O PRINCESS: Carnival Wants Cruise Bid Suspended
P&O PRINCESS: May Proceed With Caribbean Merger, Germany Says
RAILTRACK GROUP: Still Investment Grade Despite Administration


===========================
C Z E C H   R E P U B L I C
===========================


ZETOR: Attracts Foreign Investors
---------------------------------

Three foreign investors are lining up to bid for state-owned
tractor maker Zetor.

According to a Prague Business Journal report, Turkish company
Uzel, U.S. investment fund Winslow Partners and Slovak concern
IDM are taking a close look at the Brno-based company.

Due to production problems, Zetor launched a restructuring
process last year. Its creditors approved a settlement process in
April to save the company from bankruptcy.

Zetor promised to pay 100% of its debts to creditors with
preferential claims and 30% of the sum owed to the remaining
creditors.

The payment of up to 800 million Czech korunas worth of claims is
guaranteed by its owner, state-owned bail-out agency Ceska
Konsolidacni Agentura (CKA), which can swap its claims worth 4.7
billion Czech korunas for equity.


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


LEADER INDUSTRIES: Canadian Eyewear Firm Goes Bankrupt
------------------------------------------------------
  
Leader Industries Inc., maker of protective eyewear for athletes
and factory workers, filed for bankruptcy on December 31 after it
failed to reach a deal with its creditors.

Leader Industries owes National Bank of Canada, its largest
single creditor, $12 million. Other creditors include the
Solidarity Fund of the Quebec Federation of Labour and provincial
lending agency Investissement Quebec.

An executive who asked not to be named said the company's
unsecured creditors do not expect to be repaid.

Leader Industries is still operating, with about 100 workers at
its plant in Boucherville near Montreal. It also has operations
in the United States, France and Brazil.

The company's debts total $25 million, while assets are estimated
to be between $10 million and $11 million.

Raymond Chabot Inc was appointed as bankruptcy trustee to the
estate of the company and a meeting of creditors is scheduled for
January 22.

Contact Leader Industries Chairman and Chief Executive Officer
Pierre Habib at telephone (450) 641-4480 or through fax at (450)
641-4484


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


BAYER AG: Sells Chemical Units to Reduce Debt
---------------------------------------------

Bayer AG, Germany's third-largest drugmaker, will sell its three
chemical units to help reduce the company's debt levels to a
single-digit billion-euro figure in the medium term.

According to an AFX News report, Bayer chief executive Manfred
Schneider expects roughly 3 billion euros in proceeds from the
sale of Haarmann & Reimer, Rhein Chemie Rheinau and PolymerLatex
GmbH & Co KG.

Bayer voluntarily withdrew its anti-cholesterol drug Baycol in
August after it was linked to more than 50 deaths worldwide.


BROKAT AG: DataDesign Takes Over Brokat Unit
--------------------------------------------

DataDesign AG agreed to buy the electronic financing division of
insolvent Internet-commerce software maker Brokat AG on January
15 for an undisclosed sum.
  
The e-Finance division covers the regions of Germany, Austria,
Switzerland and Eastern Europe.

Included in the transaction are all rights to Brokat's E-Finance
products, the rights to the brand name Brokat, customer
maintenance and license agreements, as well as hardware and
software, a statement in the Frankfurt Stock Exchange said.

Under the deal, the Stuttgart site and its 40 employees will
operate under the name of DataDesign Stuttgart GmbH as a wholly
owned subsidiary of DataDesign AG.

To implement this transaction, DataDesign will issue to strategic
investors approximately one million new shares and to increase
cash capital by 614,000 shares.

Brokat filed for protection of creditors in November after talks
with bondholders to restructure debt failed.


CONSORS AG: Soars After HVB Interest
------------------------------------

Shares in online brokerage firm Consors Discount Broker AG jumped
on Monday after HVB Group chairman Albrecht Schmidt said his
company might be interested in acquiring the Nuremburg-based
company.

According to a Financial Times report, the broker's shares rose
about 8.5% to E11.10 on the news.

Consors has been up for sale since the near collapse of its
parent company, SchmidtBank GmbH, which was rescued from
bankruptcy by a consortium of Germany's largest banks, including
HVB, Deutsche Bank, Commerzbank, Dresdner Bank and the Bavarian
savings banks.

Schmidtbank holds a 65% stake in Consors, estimated to be worth
about 13 euros a share, or 400 million euros.

The online broker is valued at around 450 million euros, based on
its current Neuer Markt capitalization.


EDEL MUSIC: Chief Haentjes Faces Asset Sell-Off
-----------------------------------------------

Edel Music creditors have ordered Michael Haentjes, who owns a
72% share in the Hamburg-based music publishing company, to sell
part of his private assets to save the company from financial
ruin.

Handelsblatt reported that the group chief's need to liquidate
some of his own assets appears to have arisen because divestments
of a number of subsidiaries have so far failed to generate the
desired proceeds.

Among the personal sacrifices Haentjes is expected to make is the
sale of the group's extravagant glass building headquarters,
which he owns.

Proceeds from the sale, which is likely to reach a two-digit
million euros sum, will be used to pay off loans extended by
Commerzbank and HypoVereinsbank.

Edel Music's debts currently total 125 million euros.

Edel Music earlier announced the sale of Eagle Rock Entertainment
plc in Britain. The company also plans to sell music publisher
Play It Again Sam in the near future.


WUNSCHE AG: Shareholder Rejects Rescue Plan
-------------------------------------------

One of Wunsche AG's major shareholders has rejected a rescue plan
presented by the German textile company's board.

The Frankfurter Allgemeine Zeitung/FT Information reported that
Swiss company Orthmann AG has refused to approve the proposals.

Wunsche administrators are set to begin proceedings against the
company within the next two weeks.

Wunsche owns the textiles subsidiaries Miles and Jansen and
markets the brands Joop and Cinque.


=============
I R E L A N D
=============


FUJITSU LTD: Will Liquidate Printer Factory in Ireland
------------------------------------------------------

Japanese electronics conglomerate Fujitsu Ltd will liquidate a
unit in Ireland that manufactures printers and printer-related
products as part of the company's efforts to restructure its
business.

Reuters reported Monday that Fujitsu would cease operations at
Fujitsu Isotec Ireland Ltd, shutting down the factory in Dublin
and laying off its staff of 124.

Shares in Fujitsu were up 0.78% at 1,038 yen in late morning
trade, while the broader market was basically unchanged.


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


KVAERNER ASA: Agrees to Restructure Debt
----------------------------------------
  
Anglo-Norwegian engineering and construction company Kvaerner
said it has agreed to restructure its outstanding borrowings as
part of the group's new financial and industrial plan.

Kvaerner said in a statement that the debt restructuring contains
the conversion of 4.5 billion Norwegian krone of the outstanding
borrowings into subordinated bonds due October 30, 2011, and the
rescheduling of the company's outstanding borrowings of 4 billion
Norwegian krone into bullet term loans due on December 31, 2004.

These restructured loans are divided into several loan agreements
between Kvaerner and the different groups of creditors.
  
For more information, contact Paul Emberley, Vice President Group
Communications at telephone +44 (0)20 7339 1035 or +44 (0)7768
813090 or via email paul.emberley@kvaerner.com


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


SULZER MEDICA: Court Delays U.S. Settlement
--------------------------------------------

U.S. district court judge Kathleen O'Malley has granted patients
affected by Sulzer Medica's faulty hip and knee joints two months
to decide whether or not to accept the company's settlement
proposal or to participate in a class action suit against the
group.

Dow Jones Newswires reported that the period was extended to May
14, when the final fairness hearing will start. The fairness
hearing was initially scheduled for March 12.

So far, more than 80% of the affected patients have told Sulzer
Medica they agree with the company's settlement proposals. Sulzer
Medica needs the backing of around 90% of the patients to bring
the settlement through.

Around 3,000 patients have filed lawsuits in connection with
faulty hip and knee transplants against Sulzer Medica's U.S. unit
Sulzer Orthopaedics Inc.

In December, the group said its U.S. unit could file for Chapter
11 bankruptcy if the company is unable to reach a settlement
agreement with the plaintiffs.

In case of a settlement agreement, Sulzer Medica will pay up to
$783 million to the affected patients and their families in the
form of cash and stocks.


SWISSAIR GROUP: Pilots Dispute With Crossair Deepens
----------------------------------------------------

The rift between Crossair and Swissair pilots has deepened after
Swissair pilots' association Aeropers released last Thursday a
report that outlines the view of Swissair pilots on the strategy
of the future Swiss national carrier.

According to a Swissinfo report, Swissair pilots expressed their
desire to do away with the Crossair name, to position the new
airline as a high quality brand with a price tag to match and to
use the former Swissair safety regime as the security blueprint
for the new airline, the report added.

The Crossair Cockpit Personnel dismissed the report saying it was
meddling in the strategic direction and organization of Crossair.
It accused the Swissair pilots of exploiting a November 25
incident, in which a Crossair jet crashed outside Zurich airport,
killing 24 people.

The merging of Crossair and Swissair's work forces forms a
central part of the Phoenix Plus rescue package to create a new
Swiss airline from the fallen carrier, Swissair.


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


ANTISOMA PLC: Hits Funding Snag for Lead Drug
---------------------------------------------

Cash-strapped cancer research group Antisoma needs to raise an
additional 5 million pounds now that U.S. healthcare group Abbott
cut funding for Antisoma's lead drug.
    
The Independent News reported that the London-based biotech
company has set a March deadline to find at least part of the 15
to 20 million pounds that it must raise to fund further trials of
pemtumomab, an ovarian cancer treatment.

This would put Antisoma, which had about 6.8 million pounds in
the bank when it reported widening interim losses in November,
under more pressure to find some cash.

The company will run out of money by the end of June unless it
can tap the equity markets or clinch a deal to license out
products.

Antisoma's shares closed up 3p at 38.5p on Friday's trading,
reflecting nervousness about the company's cash position.


BRITISH TELECOM: Aims for Move Into Broadcasting
------------------------------------------------

BT Group Plc, the U.K.'s second-largest phone company, is
considering a plan to become a broadcaster within two years to
compete with other cable companies, the Financial Times reported,
citing Chairman Sir Christopher Bland.

Sir Christopher said he could envisage BT developing a business
similar to that of satellite television operator British Sky
Broadcasting, which makes and distributes its programs over its
own and others' networks.

Analysts say BT's ability to compete as a broadcaster will be
hampered by the high retail pricing for broadband relative to
cable.

BT is currently going through a major restructuring. It has sold
unprofitable businesses and spun off its wireless unit to slash
debt that had tripled to 27.9 billion pounds ($40.3 billion) in
the year ended March 31.


BRITISH TELECOM: Appoints New Non-executive Directors
-----------------------------------------------------

As part of a move into broadcasting, BT Group Plc brought TV boss
Margaret Jay onto its board Monday.

Baroness Jay worked as a TV producer before serving as leader of
Britain's House of Lords and is a board director for Ireland's
Independent News & Media. She was a former senior executive with
the IBM Corporation.

Also joining the board as non-executive director on January 14
are John Nelson, the retiring chairman of Credit Suisse First
Boston (Europe) Ltd and Carl G. Symon, managing director for
DiamondCluster International Inc.

At the same time, Helen Alexander, June de Moller, Sir John
Weston, and Neville Isdell will retire from the board.


CEDAR ENTERPRISE: Alchemy Offers 3.8MM Pounds to Rescue Cedar
-------------------------------------------------------------

London-based private equity firm Alchemy Partners confirmed it
would buy ailing U.K. software company Cedar Group for 3.8
million pounds, a fraction of the company's peak market
capitalization of 964.4 million pounds, the Financial Times
reported.

The lifeline comes just over a week after Cedar warned it no
longer has enough money to fund operations in the next 12 months
and would file for insolvency if rescue talks with potential
bidders failed.

The 5p-per-share offer by Redac Limited, a wholly owned
subsidiary of Alchemy, values the software company at 4.2 million
pounds, compared with a peak market capitalization of 964.4
million pounds in March last year.

Alchemy also said that HBOS, Cedar's lead creditor, had agreed to
effectively write off 20.4 million pounds of Cedar's 38 million
pounds outstanding net debt, by selling it for a nominal sum of 1
pound.

A profit warning in September, poor market conditions in the U.K.  
and the U.S. wiped more than 93% off the value of Cedar shares.
The company has already cut about 320 jobs and plans to reduce
its workforce by another 80.

Alchemy was advised by KPMG on the deal, while Cedar was advised
by Durlacher.

Cedar shares gained 1p to 4-1/2p in early trading on Monday.


CLUBHAUS PLC: Defaults on Debt Interest
---------------------------------------

Troubled Kent-based golf clubs operator Clubhaus PLC defaulted on
debt interest due last month after property write-downs left its
balance sheet too badly damaged to afford payments.

According to a report from AFX News, the company said a committee
representing the owners of 60 million pounds of senior loan notes
owed 3.9 million in interest had agreed not to take action to
recover the money while the company restructures its finances.

Clubhaus also noted that its bank, Barclays, would not be
demanding repayment of its debt while restructuring of the loans
is going on.

During the last twelve months, Clubhaus has not paid dividends.
The company also reported losses during the previous 12 months.


CLUBHAUS PLC: Seeks Survival by Converting Debt
-----------------------------------------------

Clubhaus, which owns and operates leisure businesses and
facilities in both the United Kingdom and Continental Europe, is
understood to be discussing a debt-for-equity swap with
bondholders in an attempt to stay afloat, the Times newspaper
reported.

The group admitted early this week that interest payments of 3.86
million pounds due on a controversial 60-million-pound bond had
been withheld after consultation with a committee of bondholders.

Clubhaus chairman Robert Bourne told shareholders that the
bondholders had agreed not to take precipitous action pending
discussions over a restructuring of debt.

The equitization of the bond, which pays interest at almost 13%,
was the main stumbling block to a bid early last year from
venture capitalist Compass Partners.

In September, a proposed merger with Next Generation Clubs also
fell through after lengthy negotiations.


EQUITABLE LIFE: Sets Sights on Equities Binge
---------------------------------------------

Equitable Life has vowed to splash out 4 billion pounds on buying
shares if the troubled life assurer wins a crucial vote on Friday
aimed at shoring up its ailing finances.

Equitable chief executive Charles Thomson told The Times
newspaper that the insurer would bring the equity ratio back to a
fully competitive level if the company gets backing from its
members.

Thomson's comments follow a report by Equitable's appointed
actuary, who recommends raising the equity stake from 34% to 55%
if the compromise scheme is voted.

The compromise would see the 90,000 guaranteed annuity
policyholders receiving a 17.5% increase to their pension funds
in return for relinquishing their guaranteed rights.

A further 400,000 policyholders without guaranteed returns
policies must also back the deal as well as a number of trustees.

The National Association of Pension Funds, the Equitable Life's
board and leaders of action groups earlier urged its members to
support Equitable Life's compromise deal.


FAMOUS ARMY: Leisure Chain Goes Into Administration
---------------------------------------------------

Accountants PricewaterhouseCoopers were called in Monday to act
as administrators of the outdoor leisure retailer Famous Army
Stores, the Times newspaper reported.

Russell Cash, one of the administrators, said the primary
objective was to continue to trade the business as normal with
the hope of achieving a going concern sale.

The PwC added that the demise of the leisure chain followed last
year's foot-and-mouth crisis and increased competition in the
outdoor leisure sector.

The Speke-based company has 195 retail outlets across the
country, with 40 trading as Outdoor Ventures and the remainder as
Famous Army Stores.  It has 1,340 employees around the U.K.


FUTURE NETWORK: Sells Polish Business to Cut Debt
-------------------------------------------------

Troubled U.K. publisher The Future Network plc says it has sold
its Polish magazine publishing business Silver Shark Sp. z.o.o.
to Wydawnictwo H. Bauer for 2 million pounds.

Future said the sale would be used to reduce net debt. At its
peak in June 2001, Future's debt level was 77.9 million pounds.
It is now estimated to be less than 20 million pounds.

"It's a good outcome for Future as it enables us to continue to
target the computer and video games market opportunities that
clearly exist in Poland," Future Chief Executive Greg Ingham
said.

Wroclaw-based Silver Shark was acquired by Future in July 2000
for 2.2 million pounds and has made a useful contribution to
group revenues and profits since then.

Bauer has taken all of the staff members.

For further informationm contact Chief Executive Greg Ingham or
Finance Director John Bowman at The Future Network 01225 442244


INVENSYS PLC: Sells Energy Storage to Reduce Debt
-------------------------------------------------

Global automation and controls group Invensys plc says it has
sold its battery technology unit Energy Storage Group to EnerSys,
Inc. for $505 million (351 million pounds).

The disposal is part of Invensys' plans to sell around $1 billion
in assets to slash a 3.3-billion-pound debt load and focus on
core businesses after suffering three profit warnings in 2001.

"This significant transaction continues the board's focus on
reducing the level of indebtedness of Invensys through the
disposal of non-core assets," Invensys chief executive Rick
Haythornthwaite said.

Under the deal, Invensys said it would receive warrants that, if
exercised, may give it up to a 28% equity stake in EnerSys.

The deal is subject to regulatory approval in the United States,
France and China and the receipt of financing by EnerSys, is
expected to close in March 2002.

For the period ending March 31, 2002, ESG is expected to achieve
sales of approximately $600 million (415 million pounds) and
profits before restructuring, interest and tax of around $60
million (41 million pounds).

Invensys plc is located at Carlisle Place in London. For more
information, contact the company at telephone +44 207 834 3848 or
through fax +44 207 834 3879


MARKS & SPENCER: Hopes to Revive Fortune With New Collection
------------------------------------------------------------

Marks & Spencer has launched its spring womenswear collection,
and analysts say the success of the collection is crucial for the
High Street retailer to revive its fortunes.

The first entire collection created by creative director Yasmin
Yusuf will provide a return to the classics with an emphasis on
easy glamour.

The clothes, which will be divided into "Riviera" and "Holiday"
ranges, have already received the thumbs-up from much of the
fashion press.

BBC News reports that many analysts are confident that U.K.'s
largest clothing retailer will report a 4% sales increase with
the new collection. The company's pre-tax profits had slumped to
481 million pounds for the year ended March 31, 2001.

M&S, which is cutting back its loss-making operations in Britain
and Europe, is expected to pay back 2 billion pounds of capital
to shareholders by March from money raised through disposals and
property deals.


P&O PRINCESS: Carnival Wants Cruise Bid Suspended
-------------------------------------------------

Carnival Corporation wants to suspend the hostile bid over
London-based cruises operator P&O Princess and U.S. rival Royal
Caribbean Cruises until antitrust regulators in Europe and
America have indicated whether the deals can proceed, the Times
newspaper reported.

The move comes amid bitter argument between the cruise rivals.

In November, P&O Princess announced a $7.5 billion merger with
Royal Caribbean.

Carnival hit back with a $4.5 billion offer for P&O Princess,
which rejected the bid, saying it was too cheap.

P&O has given Carnival until January 18 to improve its current
offer, otherwise, it will proceed with an extraordinary meeting
on February 14, at which shareholders will vote on the Royal
Caribbean deal.


P&O PRINCESS: May Proceed With Caribbean Merger, Germany Says
-------------------------------------------------------------

Germany's Federal Cartel Office had cleared the 4.8-billion-pound
($6.9 billion) merger of British cruise ship operator P&O
Princess Cruises with U.S. peer Royal Caribbean Cruises Ltd.

P&O Princess said, according to a Reuters report, the transaction
is now free to proceed from the perspective of German merger
control law.

The planned tie-up sparked a bidding scramble for P&O Princess
from Carnival Corp, as the world's three biggest cruise lines
seek cost-cutting alliances to counter a drop in passenger
traffic since the September 11 attacks in the United States.

P&O Princess received a downgrade rating of Baa3 from Moody's
Investors Service in November last year, following the company's
merger announcement with Royal Caribbean Cruises.


RAILTRACK GROUP: Still Investment Grade Despite Administration
--------------------------------------------------------------

Credit rating agency Moody's Investors Service said the debt of
collapsed U.K. rail network operator Railtrack remains
investment-grade despite an insolvency process that puts it in
contractual default.

Moody's assigns Railtrack a Baa1 rating, at the lower end of the
investment-grade scale, having downgraded the firm after it was
taken into Railway Administration in October 2001.

Moody's noted that although Railtrack is being run by
administrators, and is in contractual default on its debts, debt
servicing obligations were being met by the government.

The rating remains on review for a possible downgrade, the agency
said.

                                  **********

     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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