/raid1/www/Hosts/bankrupt/TCREUR_Public/020304.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

             Monday, March 04, 2002, Vol. 3, No. 44


                            Headlines

* G E R M A N Y *

COMMERZBANK AG: Sets Twenty-fold Rise in Profit This Year
DEUTSCHE TELEKOM: Antitrust Regulator Warns on T-Online Plan
KIRCHGRUPPE: Banks Will Name Moderator This Week
LTU GROUP: Charter Airline Progresses With Restructuring
MET@BOX AG: Receives Financial Support From Venture Capital
OLYMPIC AIRWAYS: EU Will Decide This Month on State Aid Probe

* I T A L Y *

BLU SPA: Communications Minister Welcomes Foreign Bidders
FIAT SPA: Sells Assets as It Slips Into the Red

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

IFCO SYSTEMS: Moody's Cuts IFCO Ratings to Junk Levels
IFCO SYSTEMS: S&P Cuts IFCO Ratings to CCC From Single B

* N O R W A Y *

BROVIG ASA: Posts Annual Results
KVAERNER ASA: EU Court Rules in Favor of Kvaerner
KVAERNER ASA: Wins Subsea Service Contract

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

SWISSAIR GROUP: Cuts 3,000 Jobs, Long-haul Fleet
SWISSAIR GROUP: EU Refers Merger to U.K.

* U N I T E D   K I N G D O M *

BIOGLAN PHARMA: Duggins, Best Appointed as Administrators
BRITISH TELECOM: Sells e-peopleserve Stake for $70MM
COLT TELECOM: Buys Back GBP34MM of Bonds
CORUS GROUP: Shares Rise With CSFB "Buy" Rating
ENERGIS PLC: Venture Capital Groups Consider Energis
EQUITABLE LIFE: Policyholders Get Policy Uplifts
ICELAND GROUP: Becomes the Big Food Group
INDEPENDENT INSURANCE: Catherine Bright Settles With Creditors
PPL THERAPEUTICS: Loses 'Dolly the Sheep' Creator
TELEWEST COMMUNICATIONS: 2001 Loss Widens on Flextech Write Down


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


COMMERZBANK AG: Sets Twenty-fold Rise in Profit This Year
---------------------------------------------------------

Commerzbank AG, Germany's third-largest listed bank, expects pre-
tax profits to rise to 700 to 800 million euros in 2002, compared
with 37 million last year, reports Handelsblatt.

"All in all, we cannot be satisfied with the projected pretax
result (for 2002) of 700 to 800 million euros, regardless of the
fact that this does not include possible sales of our
shareholdings or financial investments," Commerzbank management
board member Axel Freiherr von Ruedorffer said.

Early last week, there were reports that the Frankfurt-based bank
plans to sell its British fund management subsidiary Jupiter
International Group, which was bought in 1995 for more than 1
billion euros. The sale is a major strategic shift to return
Commerzbank to profitability.

Analysts say Commerzbank is not expected to recover its
investments on Jupiter, which is only expected to fetch around
600 million pounds on its sale.

Commerzbank, which suffers from poor profitability and high
costs, has been the subject of persistent takeover speculation
for almost two years, including a failed attempt to merge with
Dresdner Bank.

Shareholders have been pressing the bank to sell assets such as
its industrial holdings to counter a sharp fall in its share
price over the past year.  

For the fourth quarter, Commerzbank lost 189 million euros ($163
million) before taxes as it set aside more money for bad loans
and took a charge of 283 million euros to pay for an overhaul,
which includes shedding 3,400 jobs.


DEUTSCHE TELEKOM: Antitrust Regulator Warns on T-Online Plan
------------------------------------------------------------

Bonn-based telecom giant Deutsche Telekom has hit another snag
with the German Cartel Office regarding its media plan with
mobile subsidiary T-Online.

According to a report from the Financial Times, the competition
regulator is warning DT that it would block its proposed
acquisition of a 37% stake in Bild.de, the Internet portal of
Bild Zeitung, the mass-market newspaper owned by publisher Axel
Springer.

Deutsche Telekom's media plan involves Axel Springer to provide
T-Online's 8.8 million subscribers access to exclusive Bild
content. Both companies were understood to have intended a 60
million joint investment on the venture.

The Cartel Office explains that the link would increase T-
Online's already dominant position in the Internet services
market because its billing system is cost-based and charged
through a single bill.

The block threatens Deutsche Telekom's objective of reducing its
debt from 65.2 billion euros to 50 billion euros by the end of
the year. This follows the antitrust regulator's earlier
rejection of Liberty Media's 5.5-billion-euro ($4.8 billion) bid
on DT's six cable network assets.


KIRCHGRUPPE: Banks Will Name Moderator This Week
------------------------------------------------

Kirch Group's largest banking creditors will this week name a
moderator to coordinate their negotiations with the debt-laden
Bavarian media giant, reports Dow Jones Newswires, citing news
agency VWD.

The banks, including Deutsche Bank AG, Dresdner Bank AG,
HypoVereinsbank AG (HVB Group), Commerzbank, Bayerische
Landesbank Girozentrale, DZ Bank and Lehman Brothers Holdings
Inc. (LEH), have in the past been unable to agree on a strategy.

Kirch Group may face a breakup as it struggles to restructure its
6.5 billion euros debt pile and about 3 billion euros in option
payments. Assets that may be sold are the 40% stake in publisher
Axel Springer Verlag AG and Formula One rights.


LTU GROUP: Charter Airline Progresses With Restructuring
--------------------------------------------------------

The restructuring of Dusseldorf-based charter airline LTU is
running ahead of plan, Handelsblatt reported.

With LTU's seat-load factor standing at 80.4% in January and
February, the German charter airline is confident it will reach
break-even in 2003 and profitability in 2004.

LTU Group, which was already undergoing restructuring, fell into
further difficulties following the collapse of former Swiss
national carrier Swissair, its major shareholder at the time with
a 49.9% stake.

The company escaped insolvency in December after shareholders,
banks and the government of North Rhine Westphalia cut a deal
worth 120 million euros in credits.  

Now, LTU has a year to find a buyer for the Swissair stake. The
German airline is in its early stage of negotiations with ten
potential financial investors. The new partner is expected to be
on board by May or June.


MET@BOX AG: Receives Financial Support From Venture Capital
-----------------------------------------------------------

In the context of its finance restructuring program, set-top box
manufacturer Met@box AG of Hildesheim has received support of the
Venture Capital Agent & Consult VCAC GmbH.

According to an announcement from the Frankfurt Stock Exchange,
there are miscellaneous investors who intend to invest from 6 up
to 14 million euro into the technology-company of Hildesheim in
the following two to six months.

Additionally, the contract includes a guarantee for the solvency
of the interested investors for at least 6 million euros.

VCAC GmbH will assist the company for six months actively,
especially for the met@box 1000-launch in the area of B2B, B2C
and consulting.

Metabox has withdrawn its application for insolvency in November
of last year, claiming it already has funds gained from financial
markets and asset sale.

For further information, contact Melanie Hoffmann, Management
Public & Investor Relations, at telephone 05121/75 33-116 or fax
05121/75 33 75, or via e-Mail at hoffmann@metabox.de


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


OLYMPIC AIRWAYS: EU Will Decide This Month on State Aid Probe
-------------------------------------------------------------

The European Commission will decide this month whether to open a
formal state aid inquiry into Greek state aid in favor of Olympic
Airways, commission sources say.

The Commercial Bank of Greece has granted a state-guaranteed loan
of 17.6 million euros to the debt-ridden national airline as
operating expenses in the 1990s, which might prove to be an
illegal aid.

If the Commission rules against the airline, it could be asked to
repay the Greek state, putting the troubled airline under further
pressure.

Last month, Olympic Airways announced a restructuring that will
involve shedding of 2,000 jobs, or more than a quarter of its
work force, to bolster flying operations and to cut debts while
spinning off other departments such as repair, catering and
ground handling.

The move follows government's unsuccessful repeated effort to
convince investors to buy the airline to avoid bankruptcy.

Analysts now fear that Olympic could become the third European
airline to fold in the last six months, following the failures of
Swissair and Sabena.

Olympic, like all other airlines worldwide, has been hit hard by
a slump in passenger numbers in the wake of the World Trade
Center attacks in September last year


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


BLU SPA: Communications Minister Welcomes Foreign Bidders
---------------------------------------------------------

Italian Communications Minister Maurizio Gasparri will welcome
any serious foreign bidder for Rome-based mobile phone operator
Blu, the Dow Jones Newswires reports.

Analysts speculate that the bidder could be Spain's Telefonica
Moviles SA or Hong Kong's Hutchison Whampoa Ltd.

Minister Gasparri said he is not aware if an offer had been made
since any offer is made to Blu, and not to the Italian
government.

Gasparri went to Brussels earlier to seek permission for its
leading mobile operator Telecom Italia Mobile to buy Blu.

Telecom Italia's interest in Blu is causing regulatory hurdles.
TIM ranks among the dominant mobile operators in Italy and E.U.
Competition Commissioner Mario Monti may demand that Blu be taken
over by another entity.

Another shadow clouding TIM's bid involves the Benetton family's
stake in Blu. The Benettons promise last year to spin off their
41% stake in Blu on condition that the family is allowed to
participate in a bid for Telecom Italia SpA.


FIAT SPA: Sells Assets as It Slips Into the Red
-----------------------------------------------

Turin-based industrial group Fiat SpA has received several firm
offers for some of its 3 billion euros ($2.6 billion) in assets
it is seeking to sell, the Financial Times reported, citing chief
executive Paolo Cantarella.

The planned sale of assets is a key component of a restructuring
plan unveiled in December. The layoff of 6,000 workers and the
closure or scaling back of 18 plants are meant to halve Fiat's
net debt of 6 billion euros and help turn round its automotive
business.

Mr Cantarella declined to say when the assets under discussion
would be sold and brushed off worries about debt.

Fiat on Thursday reported a net loss for 2001 of 445 million
euros. Its Fiat Auto division swung to an operating loss of 549
million euros from a profit of 44 million euros.

Operating profit at CNH, the group's agricultural and
construction equipment unit, nearly quintupled to 209 million
euros, while truck division Iveco saw profit almost halved to 271
million euros.

Fiat recently raised 1 billion euros selling new stock, and a
further 2.2 billion euros through the sale of notes exchangeable
for its stake in General Motors.


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


IFCO SYSTEMS: Moody's Cuts IFCO Ratings to Junk Levels
------------------------------------------------------

Moody's said Thursday it has lowered the senior implied rating of
Amsterdam-based IFCO Systems N.V. from Caa1 to Caa2, unsecured
issuer rating from Caa2 to Ca, and the EUR200 million 10.625%
senior subordinated notes due 2010 lowered from Caa3 to Ca.

Concurrently, Moody's affirmed the Caa1 rating on the company's
$109.8 million senior secured credit facilities due 2003.

All ratings remain on negative outlook. Ratings affected by the
downgrade are as follows:

The ratings downgrade reflects acute concerns as to IFCO's
ability to continue servicing current debt levels in the context
of the company's operating and financial strategy, Moody's said.

In light of continuing poor performance trends, setbacks in de-
leveraging the business compared to plan, and unlikely additional
equity support, Moody's expects that IFCO will probably seek a
debt restructuring in the near-term in order to reduce existing
leverage levels.

IFCO, along with its U.S. subsidiaries, is a leading global
provider of supply-chain support services, with dominant
positions in the round-trip container and pallet services and
pooling markets.

For the quarter ended September 30, 2001, IFCO reported revenues
from continuing operations (i.e. excluding pallet manufacturing
and drum reconditioning operations) of $94.3 million, EBITDA from
continuing operations of $9.6 million, for total debt of
approximately $380.8 million (including capital lease
obligations).


IFCO SYSTEMS: S&P Cuts IFCO Ratings to CCC From Single B
--------------------------------------------------------

Standard & Poor's has lowered the corporate credit rating of IFCO
Systems N.V. to triple CCC from B and placed the rating on
CreditWatch with negative implications due to a high probability
that the company will be unable to make its $9 million interest
payment on March 15, 2002, associated with its 200 million euros,
10.625% senior subordinated notes.

In addition, the company announced that it has hired ING Barings
Limited as a financial advisor in addressing the company's highly
leveraged capital structure, specifically the 200 million euros
debt issue.

The rating downgrade reflects the Dutch company's highly
leveraged balance sheet and very weak cash flow protection.
IFCO's management has tried to improve the company's balance
sheet and financial flexibility through the sale of the company's
pallet manufacturing and industrial containers business segments.

However, the reduction in debt due to these asset sales has not
been enough to materially improve credit protection measures or
increase financial flexibility.

At September 30, 2001, IFCO has an approximately $19 million in
cash and about $2.5 million in bank revolving credit facility
available.

It is highly likely that without some sort of restructuring or
equity infusion the company will be unable to meet its near-term
debt obligations.

Standard & Poor's will monitor the company's financing plans and
operating prospects.


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


BROVIG ASA: Posts Annual Results
--------------------------------

Brovig ASA, which offers services for well-testing and marginal
oil production to the oil industry based entirely on special
purpose ships, reported Thursday its 2001 financial results.

The Oslo-based company said that its total operating revenues in
2001 was NOK236.9 million, compared to NOK 287.8 million in 2000.
Operating revenues were mainly generated by the Extended Well
Test (EWT) contract on the Chestnut field, the offshore
consultancy services of Brovig RDS Ltd., and to a small extent,
from oil production on the OBE field.

Total operating expenses were NOK331.2 million, compared with
NOK325.7 million in 2000.

The operating result before depreciation (EBITDA) was NOK-94.3
million and operating result was NOK-182.7 million. Net finance
was NOK-59.3 million and the currency loss was NOK0.1 million.
The preliminary result for 2001 was NOK-451.3 million.

Included in preliminary result for 2001 are write-downs of
NOK26.9 million, elimination of deferred tax assets of NOK103.7
million and provisions of losses/full write down related to the
ISIS-project of NOK109.0 million.

As of December 31, 2001, Brovig had a gross cash balance of
NOK110.7 million and a working capital of NOK125.7 million. The  
shareholders' equity of the Group was NOK247.8 million, with a
gross interest bearing debt of NOK789.3 million.

The need for working capital in the 2nd half 2001 was covered
through an equity issue in the third quarter 2001 of NOK98.1
million, which after repayment of certain debt and transaction
costs generated approximately NOK80 million of net cash. This
transaction increased the number of outstanding shares from 15.2
million at the beginning of 2001 to 113.2 million shares.

In February 2002, Brovig announced it had been granted
postponement of debt installments aggregating $3.85 million from
its mortgage banks until June 30, 2002 for loans aggregating $59
million, as well as postponed interest payments on its bond loan
of NOK178.5 million until June 30, 2002 to preserve the working
capital.

The consideration for the postponed interest payments on the bond
loans is NOK2.7 million, which is payable in cash or in shares.

If all bondholders choose shares, the total number of outstanding
shares will be 2.44 million.

For further information, contact Hans-Jorgen Wibstad, Managing
Director, at telephone + 47 23 100 900


KVAERNER ASA: EU Court Rules in Favor of Kvaerner
-------------------------------------------------

The Court of First Instance on Thursday ruled in the case
concerning alleged breach of capacity restrictions at Kvaerner's
German shipyard, Kvaerner Warnow Werft.

The Court set aside the EU commission's decision that Kvaerner
should repay 117 million marks. Kvaerner paid and accounted for
this amount in 2000.

The Court's decision can be appealed within two months.

In addition to this case, the EU commission has not yet finalized
its assessment whether Kvaerner should partly repay subsidies
received in connection with loss-making shipbuilding contracts
when Kvaerner took over the yard 10 years ago. Kvaerner is of the
opinion that such repayment cannot be justified.

Earlier, Kvaerner said that pre-tax result after exceptional
items for the year ending December 31 was a loss of NOK5 billion
($563 million).

Kvaerner staved off bankruptcy in November by agreeing to merge
its Oil & Gas business with rival Aker Maritime. Following the
restructuring of debt, the injection of new equity into the
company, and the forthcoming integration with Aker Maritime, the
group now has a sound financial basis and a good industrial
platform for further development.

The Kvaerner Group expects to have revenues in 2002 approaching
$6 billion, with some 40,000 permanent staff located in more than
30 countries throughout Europe, Africa, Asia and the Americas.

For further information, contact Geir Arne Drangeid, Senior Vice
president for Group Communications at telephone +47 6751 3036 or
mobile +47 913 10 458.


KVAERNER ASA: Wins Subsea Service Contract
------------------------------------------

Kvaerner, the Anglo-Norwegian engineering, construction and
shipbuilding group that almost went bust last year, said that
Kvaerner Oilfield Products has been awarded a contract to supply
the DUET multiphase flow meter for subsea service by Veba Oil &
Gas UK Limited. This will be used in the Guillemot West - Western
Extension Project - in the U.K. sector of the North Sea.

The DUET multiphase flow meter (MFM) is the subsea version of the
reliable DUET meter. The DUET MFM measures simultaneously the
volumes of all three phases, oil, gas and water produced from a
well. This measurement is achieved by a combination of dual
energy gamma ray transmission and cross-correlation.

Veba Oil & Gas UK Limited is the operator of the Guillemot West
and North West Field in the U.K. sector of the Central North Sea.
These fields are produced by subsea facilities linked by pipeline
to the Triton Floating Production, Storage and Offloading (FPSO)
vessel.

The Guillemot West development comprises five remote subsea well
completions drilled from two subsea drilling centers and tied
back by rigid infield flowlines and flexible risers to the FPSO.

Two additional wells will be drilled and completed subsea and
tied into the existing manifold via a new manifold to be
installed in 2002. The DUET subsea multiphase flow meter is to be
installed on the new manifold.

The DUET subsea multiphase flow meter will be tied into a
Kvaerner Oilfield Products subsea control sysytem being supplied
under a separate contract placed in 2001, to provide a
comprehensive subsea control and metering package to Veba Oil &
Gas UK Ltd.

For further information, contact Roger Trett, Vice President for
Commercial of Kvaerner Oilfield Products, at telephone +44 (0)20
7559 6004, or Paul Emberley, Vice President Group Communications,
Kvaerner PLC at telephone +44 (0)20 7339 1035 or +44 (0)7768
813090 or via e-mail at paul.emberley@kvaerner.com


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


SWISSAIR GROUP: Cuts 3,000 Jobs, Long-haul Fleet
------------------------------------------------

Swissair, Switzerland's struggling national airline, will lay off
immediately at least 3,000 of its 30,000 staff at airline
catering unit Gate Gourmet as a result of the dramatic drop in
air travel following the September 11 terrorist attacks in the
U.S., reports the Financial Times.

The Swiss aviation company, which serves 210 destinations in 75
countries, will also cut its long-haul fleet by a quarter and
merge its short haul operations with its low-cost sister company
Crossair in a bid to stave off bankruptcy.

Swissair's decision to cut jobs at Gate Gourmet and reduce the
size of its flagship airline follows the Swiss government's
decision to help organize a private sector bailout of the
Swissair group, which employs 70,000 people around the world.

The Swiss government has appointed Ulrich Bremi, former chairman
of the Swiss Re insurance giant, to formulate a rescue plan in
time for October 10.

Swissair, which filed for bankruptcy in October, has 15 billion
Swiss francs ($9.5 billion) of debt and just 555 million Swiss
francs of equity. The company says that it urgently needs an
equity injection if it is to realize the benefits of the proposed
fundamental restructuring of its airline operations.


SWISSAIR GROUP: EU Refers Merger to U.K.
----------------------------------------

Competition Minister Melanie Johnson last Tuesday welcomed the
European Commission's decision to refer part of a proposed merger
of companies providing foodservices to the U.K. competition
authorities.

The merger would result in Compass Group PLC's acquisition of
Restorama AG, Rail Gourmet Holding AG and part of the business of
Gormet Nova, a group of companies that constitutes part of the
foodservice concerns of SwissAir Group's Sairlines.

The Commission has decided to refer the case to the U.K.
competition authorities as it relates to the market in the U.K.
for on-train foodservices.

The case will now be considered under the merger provisions of
the Fair Trading Act. The EC Merger Regulation requires the
consideration of the case to be completed within four months.


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


BIOGLAN PHARMA: Duggins, Best Appointed as Administrators
---------------------------------------------------------

David Duggins and Ian Best of Andersen were appointed on February
21 as Joint Administrators 2002 to Bioglan Pharma PLC and Bioglan
(Holdings) Limited, and as Administrative Receivers at the
subsidiary company, Bioglan Laboratories Limited.

The intention of the Joint Administrators and Joint
Administrative Receivers is to continue trading the businesses
for the time being, while working with management to explore all
options for their future, including the possibility of sales as a
going concern.

As has been reported, the directors of the Hertfordshire-based
Bioglan Pharma announced on January 31 that an indicative offer
for the entire issued capital of the pharmaceutical company had
been received. The directors subsequently announced on February
20 that discussions relating to this offer had been terminated
after banks foreclosed on its 112 million pounds of debts.
Trading in Bioglan's shares was suspended, as a consequence.

The company's woes stem from over-ambitious expansion in recent
years, funded by debt rather than equity, and a practice of
aggressive accounting.

In the six months to the end of July, pre-tax losses jumped from
746,000 pounds to 35.7 million pounds, while the debt-to-equity
ratio rose to more than 150%.

If you should have any press inquiries, please contact either Jon
Aarons on 020 7269 7178 or Sian Smith 020 7269 7212 from
Financial Dynamics.

Alternatively, for all general inquiries, please call Bioglan
Pharma PLC on 01462 633 286 and ask to speak to a representative
from Andersen.


BRITISH TELECOM: Sells e-peopleserve Stake for $70MM
----------------------------------------------------

BT Group Plc sold its 50% stake in e-peopleserve, the human
resources outsourcing business, to partner Accenture Ltd for $70
million in cash, reports Reuters.

The sale was in line with the strategy of Britain's main phone
company to focus on its core activities. Proceeds will be used to
reduce debt.

BT will also receive additional payments based on e-peopleserve
revenues over the next five years, of between $35 and $222.5
million, the news agency adds.

BT Group reported that its net debt has been cut from some 30
billion pounds to 13.6 billion pounds at the end of last year
following a wave of disposals and the 5 billion pounds rights
issue.


COLT TELECOM: Buys Back GBP34MM of Bonds
----------------------------------------

Colt Telecom Group PLC has purchased 34 million pounds of bonds
for 13 million pounds in cash, AFX News reported.

The purchases were undertaken by Colt Telecom Finance Ltd, which
said it has no intention to sell the notes, and arrangements may
be made in due course to cancel them.

Colt may purchase additional bonds in the future, it added.

The London-based company says it will cut 500 jobs, or 10% of its
workforce, and reduce capital spending to cope with slower
revenue growth in 2002. Chief executive officer Peter Manning
says the job cuts will cost the company 12 million pounds. Most
of the job cuts will be in the first half of the year, Chief
Finance Officer Lawrence Ingeneri added.

Colt has cash and liquid resources of 1.3 billion pounds, versus
1.3 billion pounds in long-term debt for 2001. The company also
said its net loss for the three months ended December 31 widened
to 253.5 million pounds ($361.3 million), compared with a loss of
19.5 million pounds a year ago.


CORUS GROUP: Shares Rise With CSFB "Buy" Rating
-----------------------------------------------

Shares in Corus Group PLC rose to 80.75 pence on Wednesday
following news that Swiss-owned broker CSFB upgraded its rating
for the Anglo-Dutch steelmaker to buy from hold, the AFX News
reported.

CSFB said it believes Corus is the most leveraged play to an
upturn in steel prices in the second half of this year.

Meanwhile, the Iron and Steel Trades Confederation and Amicus
unions are considering industrial action against Corus after the
company imposed to freeze the pay of its U.K. workers to conserve
money, while awarding their Dutch colleagues a 7% pay raise.

Corus, which lost more than 200 million pounds ($286 million) in
the first half of 2001, hopes to raise up to 200 million pounds
from the sale of some of its property portfolio. The two largest
sites for sale would be Ebbw Vale, in the Welsh valleys, and part
of Llanwern, a more strategically placed site near the M4
motorway.


ENERGIS PLC: Venture Capital Groups Consider Energis
----------------------------------------------------

Blackstone Group of the U.S., Apax Partners and Alchemy are
reported to be among the venture capital groups that are
considering a bid for all or part of Energis, the London-based
Internet traffic carrier on the brink of bankruptcy.

British newspapers have also said that Energis' former chief
executive Michael Grabiner approached Energis' advisers and told
them that Apax is interested in making a bid for the business.

Energis is close to collapse after it racked up with more than
one billion pounds ($1.4 billion) of net debt. Now it will shed
the European units, fire 400 workers to save 25 million pounds a
year and renegotiate bond debt in a bid to persuade banks to lend
the money it needs to survive.  

The company has lost 99% of its value over the past year and
faces relegation from the FTSE 250 Mid-cap index when the index
compiler reshuffles this month.

In February, shares in Energis closed at three pence valuing it
at just more than 50 million pounds. That compares with a peak of  
near 14 billion pounds in March 2000. Bonds were further traded  
at around 15% of their face value, after credit agencies cut  
their ratings on the company because of fears that it would  
default on its payments for the 565 million pounds ($804.8  
million) of bonds.
  
Founded in 1993, Energis is an IT services and telecommunications  
solutions provider. It focuses on the business marketplace,  
offering integrated solutions from a portfolio of data, voice,  
connectivity, complex managed hosting and managed application  
services. The company has a significant presence in the U.K.,  
Germany, the Netherlands, Switzerland, Ireland and Poland.


EQUITABLE LIFE: Policyholders Get Policy Uplifts
------------------------------------------------

Equitable Life's policyholders finally received some goods news
as the insurer applied uplifts to their policies triggered by the
compromise deal designed to stabilize its troubled finances, the
Times reported.

Under the deal, holders of policies with guaranteed annuities
will receive average uplifts of 17.5% in return for waiving their
rights to a guarantee.

Policyholders without guarantees will gain a flat boost of 2.5%
for both accepting the increase given to GARs and agreeing not to
sue the insurer for giving poor financial advice.

Part of the cash for the uplifts comes from the 250 million
pounds that Halifax promised when the bank bought Equitable's
operating assets last year.

However, Equitable's troubles are not yet over. Financial
advisers expect a flood of defections from the stricken life
fund, despite a 10% exit penalty for early withdrawals.

Equitable also faces legal action from members who have retained
the right to sue for mis-selling by leaving the with-profits
fund.


ICELAND GROUP: Becomes the Big Food Group
-----------------------------------------

Shareholders of Iceland Group PLC have approved the change of the
cash-strapped supermarket group's name from Iceland Group plc to
The Big Food Group plc. The new RIC will be BFP.L.

The name-change will end the confusion caused by the Group
sharing a name with just one of its subsidiaries, the Big Food
Group's Chief Executive Bill Grimsey said.

The new identity will also help investors to focus on the real
strengths of the Group by more accurately reflecting the unique
positioning as the UK's only integrated food provider.

Mr Grimsey is scheduled to detail on March 6 the cost of store
renovations and supply-chain improvements announced last July.

The frozen food retailer, which issued three profit warnings in
2001, have struggled recently amid rumors that the group was
considering a rights issue to pay for necessary investment and to
help shave its debt, which stood at 430.4 million pounds in
November.

The group has appointed accountant Ernst & Young to examine
fundraising options.

Iceland, which owns the Booker cash and carry business, as well
as the frozen food chain, is valued at 475 million pounds ($673.1
million). It employs 28,000 people in the UK.

For inquiries, contact The Big Food Group plc Chief Executive
Bill Grimsey or Finance Director Bill Hoskins at telephone 020
7796 4133.


INDEPENDENT INSURANCE: Catherine Bright Settles With Creditors
--------------------------------------------------------------

The wife of Michael Bright, former chief executive of the
collapsed U.K. insurer Independent Insurance, has made an out of
court settlement for a legal dispute with National Westminster
Bank, reports the Financial Times.

According to Stephen Moss, partner at Reid Minty, the law firm
acting for NatWest, Catherine Bright will pay a substantial sum
to the bank, but would not disclose the amount involved.

It is understood that much of the money that Mrs Bright will pay
to NatWest will come from of her share of the proceeds after the
Bright's two homes in Kent and London are sold.

NatWest issued legal proceedings against Mrs Bright last year in
the hope of recouping almost 300,000 pounds relating to loans
taken out by the couple.

The case was due to be heard at the High Court later this year.

Michael Bright was declared bankrupt last August and owes around
5 million pounds to four creditors including the private banking
arm of HSBC. Mr Bright took out a loan worth 4.28 million pounds
with HSBC secured against his 6% stake in Independent Insurance,
which is now almost worthless following the group's collapse.

Independent Insurance called in liquidators
PricewaterhouseCoopers in June shortly after actuaries Watson
Wyatt said they could not quantify the company's liabilities
because hundreds of claims had not been entered into its systems.

The company is now at the center of an investigation by the
Serious Fraud Office.

Since Mr Bright's bankruptcy, his homes have been put up for sale
to help pay his creditors.


PPL THERAPEUTICS: Loses 'Dolly the Sheep' Creator
-------------------------------------------------

Dolly the Sheep creator Dr Alan Colman became the latest
executive to resign from cash-strapped biotechnology firm PPL
Therapeutics.

The research director, who in 1996 led the PPL team that
engineered Dolly, the world's first cloned sheep, will leave the
company at the end of March 2002 to join Singapore-based ES Cell
International, a human embryo research operation.

PPL is understood to be unlikely to appoint a new research
director following its recent strategic shift from research to
the commercialization of the proteins it has already developed.

As previously announced, PPL intends to spin off its stem cell
business and is currently talking to a number of companies in
this area, including ESI.

PPL is due to announce its annual results this month. Beeson
Gregory predicts a pre-tax loss of 11.9 million pounds, compared
with a net loss of 6.6 million pounds in the first half of 2001.

The company had been low on funds for sometime, but failed to win
support for an attempt to raise 40 million pounds earlier last
year  
because of fears over the effect of foot-and-mouth disease on its  
genetically modified sheep. The latest attempt to raise funds was
been hampered by the terrorist attacks in the United States on
September 11.

Contact April D'Arcy at telephone +44 (0) 131 440 4777 for more
information.


TELEWEST COMMUNICATIONS: 2001 Loss Widens on Flextech Write Down
----------------------------------------------------------------

Surrey-based cable operator Telewest Communications Plc said its
full-year loss widened to 1.94 billion pounds ($2.7 billion), or
67.2 pence a share, compared with 706 million, or 26.1p a year
ago, after it cut the value of electronics component distributor
Flextech by 1.13 billion pounds.

Advertising, which in 2001 was already experiencing its worst
year in a decade, worsened after the September terrorist attacks
prompted businesses to cut spending.

Telewest said in November it was reviewing the value of Flextech,
acquired for 2.1 billion pounds in April 2000.

Telewest is coming under heavy pressure to restructure its
balance sheet as debt piled up to about 5 billion pounds and its
future uncertain.

According to Deutsche Bank analyst Morten Andersen, the cable
operator can sell off assets such as Flextech, do a rights issue,
or go to the markets and borrow the money to boost its balance
sheet.

                                   ***********

      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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