/raid1/www/Hosts/bankrupt/TCREUR_Public/020405.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, April 5, 2002, Vol. 3, No. 67


                            Headlines

* F I N L A N D *

SONERA CORPORATION: Shareholders Approve 2001 Figures in AGM
AIR LIB: Industrial Action Disappoints Unions
AIR LITTORAL: Will Sue Swissair Over EUR15 Million Obligation

* G E R M A N Y *

CONSORS AG: Unreasonable Price Tag Allegedly Delaying Sale
FAIRCHILD DORNIER: Gov't, Banks to the Rescue Once More
FAIRCHILD DORNIER: U.S. Arm Implements Layoffs
HERLITZ AG: Dispute Over Credit Guarantee Causes Insolvency
KIRCHGRUPPE: Insolvency Looms as Two Creditor Banks Quit Talks
KIRCHGRUPPE: Talks Shift to Declaring KirchMedia Insolvent

* I T A L Y *

ALITALIA SPA: Dutch Court Rules Fokker Owes Alitalia EUR14.56 MM

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

KPN NV: Phone Regulator Orders Tariff Cuts on Fixed-Mobile Calls
KPN NV: Joe Nacchio Will Not Seek Re-Election to KPNQwest Board

* P O L A N D *

LOT AIRLINES: Will Sign Airline Alliance Accord Today

* U N I T E D   K I N G D O M *

CLUBHAUS PLC: Shares on Hold After Missing Disclosure Deadline
IMS GROUP: High Court Assigns Two Administrators, Says Report
INVENSYS PLC: Notification of Major Interests in Shares
INDEPENDENT INSURANCE: Spanish Policyholders Press for Payout
ITV DIGITAL: Co-owner Carlton on Review for Downgrade by Moody's
NTL INCORPORATED: Junk Corporate Ratings Slide Further to "D"
NTL INCORPORATED: French Partners to Sell Stakes as Outlook Dims
RAILTRACK GROUP: Puts on 'Hold' Suit Against Stephen Byers
UK COAL: Notification of Directors' Interests
VERSATEL TELECOM: Put on "CreditWatch" due to Proposal Amendment
WILLIAM BAIRD: Issues "Profit Warning" After Poor 2001 Results
WILLIAM BAIRD: Reveals Preliminary Results Ending Feb. 2, 2002
WILLIAM BAIRD: Notification of Directors' Interests


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


SONERA CORPORATION: Shareholders Approve 2001 Figures in AGM
------------------------------------------------------------

The Annual General Meeting of Sonera Corporation held on April 3,
2002, adopted the income statement and the balance sheet, and the
consolidated income statement and balance sheet, and discharged
the members of the Board of Directors and the President & CEO
from liability.

In accordance with the proposal made by the Board of Directors,
the Annual General Meeting resolved that no dividend be paid for
the year 2001.

In accordance with the proposal made by the Nomination Committee,
Tapio Hintikka was elected Chairman of Sonera Corporation's Board
of Directors, and Jussi Lansio was elected Vice Chairman. Jorma
Laakkonen, Eva Liljeblom, Roger Talermo, Esa Tihila and Tom von
Weymarn were elected other members of the Board of Directors.

The Annual General Meeting resolved that EUR6,250 be paid to the
Chairman, EUR4,000 to the Vice-Chairman and EUR3,500 to the other
members of the Board of Directors as a monthly remuneration
during the following term of office. The remuneration will be
paid monthly starting from April 1, 2002. No separate meeting fee
will be paid.

As the Company's auditors were elected KPMG Wideri Oy Ab,
Authorized Public Accountants, with Solveig Tornroos-Huhtamaki as
the responsible auditor, and Jorma Heikkinen, Authorized Public
Accountant.

The Annual General Meeting authorized the Board of Directors to
decide on the repurchase of a maximum of 2,000,000 of the
Company's own shares in accordance with the Board's proposal. The
authorization is valid for one year after the resolution of the
Annual General Meeting, i.e. until April 2, 2003.

The Annual General Meeting authorized the Board of Directors to
decide on the reissuance of a maximum of 2,550,000 of the
Company's own shares in accordance with the Board's proposal. The
authorization is valid for one year after the resolution of the
Annual General Meeting, i.e. until April 2, 2003.

In addition, the Annual General Meeting authorized the Board of
Directors to make charitable donations for up to EUR100,000
within one year of the resolution of the Annual General Meeting,
i.e. until April 2, 2003.

For further information, please contact: Jari Jaakkola, Executive
Vice President, Corporate Communications & IR tel. +358 2040
54005 e-mail: jari.jaakkola@sonera.com

Sonera Corporation is a leading provider of mobile and advanced
telecommunications services. Sonera is growing as an operator, as
well as a provider of transaction and content services in Finland
and in selected international markets. The company also offers
advanced data solutions to businesses, and fixed network voice
services in Finland and neighboring markets. In 2001, Sonera's
revenues totaled EUR2.2 billion, and profit before extraordinary
items and taxes was EUR450 million. Sonera employs about 10,000
people.

Contact Information:          

In the U.S.:
Mr. Steve Fleischer
Vice President
Investor Relations & Corporate Communications
Tel. + 1 973-448-4616
E-mail: steve.fleischer@sonera.com



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


AIR LIB: Industrial Action Disappoints Unions
---------------------------------------------

Despite a call for industrial action on the part of pilots and
flight engineers from unions CFTC, SNPL, Snomac, Unac-CGC, CGT
and SPAC, no flights serviced by French airline Air Lib were
disrupted over the Easter weekend.

According to the Les Echos and FT Information, the airline had
the knowledge that the majority of pilots will not take part in
the strike. The unions' demands include the approval of
redundancy packages.

The unions, considering further strike action, claims that the
management wants to make changes to pilots' contracts in the
summer designed to improve productivity. They predict these
modifications will be unacceptable. The unions add that it will
be due to this that a large number of pilots may decide to leave
the company.

Early in March, Air Lib faced another blow when its cabin staff  
launched industrial action, loosing an estimated EUR300,000 from
ticket cancellations.

The French airline, now headed by Jean-Charles Corbet, filed for
creditor protection in July last year.


AIR LITTORAL: Will Sue Swissair Over EUR15 Million Obligation
-------------------------------------------------------------

Air Littoral announced it will initiate legal action against its
former parent Swissair Group AG, citing claims of around EUR15
million in payment due to the French regional carrier, AFX News
said Wednesday.

Last year, Swissair agreed to pay current and former Air Littoral
owner Marc Dufour FRF850 million (US$114.2 million). A last
tranche over FRF100 million (US$13.4 million) due in Sept 30,
2001 is still outstanding, AFX news said, citing an Air Littoral
spokesman.



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


CONSORS AG: Unreasonable Price Tag Allegedly Delaying Sale
----------------------------------------------------------

Rumors have surfaced that those interested in acquiring online
broker Consors AG are finding its price tag to high and that as a
result the sale might not push through as planned this month.

According to the Financial Times, the speculations caused the
shares of Europe's second-largest online broker to drop 3% to
EUR12.49 Wednesday.

But troubled parent company SchmidtBank maintains that the
schedule of sealing the transaction before the end of the month
is still on track.

SchmidtBank administrator Paul Wieandt told the paper recently
that only the need for "careful analysis of contract structures"
and other complications had forced the delay.

The banks that rescued SchmidtBank - Deutsche Bank, HVB Group,
Dresdner Bank, Commerzbank and the Bavarian public sector banks -
are reportedly keen on pressing ahead with the sale and wind down
of the 170-year-old private bank's operations, paper says.

Meanwhile, BNP Paribas, France's biggest bank, appears to be in
the lead right now.  It's recent denial of a generous offer for
Consors has only fueled rumors that the price may be holding-up
the sale, indeed.

It recent described recent German press reports that it was
willing to offer about EUR650 million (US$573 million), as pure
speculation.

Bankers believe Consors is worth EUR13 a share at most or about
EUR600 million and SchmidtBank's 65% stake at roughly EUR400
million.

An acquisition of Consors will propel BNP Paribas to the number
one spot in the online brokerage business in Europe with one
million clients.  It currently has 400,000 clients at its Cortal
unit, France's largest Internet broker.  Consors will add another
550,000 to that number.

Other bidders for Consors include Societe Generale of France and
Commerzbank, which controls Comdirect, Europe's biggest online
broker. US broker E*Trade is also thought to be interested, the
paper says.


FAIRCHILD DORNIER: Gov't, Banks to the Rescue Once More
-------------------------------------------------------

Things are looking bright for troubled regional aircraft maker
Fairchild Dornier, despite declaring insolvency early this week.

The German federal government and regional government of Bavaria
have closed ranks and deployed state-owned banks on a mission to
resuscitate the insolvent jet-maker.

In a joint statement released recently, the Bavarian finance and
economics ministries disclosed that a group of German banks will
guarantee the liquidity of the company for the "next few months."  
No details were disclosed, though.

According to the Financial Times, these state guarantees still
need formal approval by the federal and regional governments and
must also be approved by the European Commission.

It is expected that the same consortium of banks, which extended
some US$740 million in loans to the company during a change of
ownership two years ago, will again be involved in the new rescue
effort.

These banks include Munich-based HVB group, the part Bavarian
state-owned Bayerische Landesbank and Kreditanstalt fur
Wiederaufbau, and the federal development bank.

Fairchild declared insolvency last Tuesday, just two years after
Clayton Dubilier & Rice, the US venture capital group, and
Allianz Capital Partners invested US$400 million of equity to
take a 95 percent stake in the group.

At the time, the company also teetered on the brink of
bankruptcy.  The collapse on Tuesday, however, was caused by too
much losses incurred in developing its new 70 to 85-seat 728
regional jet.

Accordingly, the new aircraft, the world's first purpose-designed
regional jet, has proved more costly and has taken longer to
complete than originally planned, bringing Fairchild Dornier to
its knees, as it seeks to challenge the present hegemony of
Canada's Bombardier and Embraer of Brazil in regional jets.

The group tried to invite Boeing on board, but the American
aircraft maker refused the offer last week.  This refusal
accelerated the group's flight to the courts.

Interim administrator Eberhard Braun said recently "the company
will continue to operate without restrictions."  He said he would
step up efforts to find a strategic partner and hoped to reach a
solution in the next three months.

The paper says the company had struggled to win new orders, even
before the wells completely dried up in the wake of the September
11 terrorist attacks in the US.

It has only taken 125 firm orders for the 728 aircraft and 164
options led by the order from Lufthansa, the German airline and
launch customer, which has placed 60 firm orders with a further
60 options, the report says.


FAIRCHILD DORNIER: U.S. Arm Implements Layoffs
----------------------------------------------

Fairchild Dornier, the insolvent German aircraft manufacturer,
has begun cutting jobs at its US headquarters outside Washington,
D.C., ATWOnline said yesterday.

A group of employees had already been given their walking papers
and more are still to follow, the report adds.

ATWOnline quoted a senior airline executive saying: "The list has
not been finalized.  We have no option but to make significant
reductions in cost."

Optimistic, the executive said that the aircraft manufacturer
still has much to offer to would-be investor, citing the new
728JET, the state-of-the-art aircraft production facility in
Germany and the US$11.5 billion order book.


HERLITZ AG: Dispute Over Credit Guarantee Causes Insolvency
-----------------------------------------------------------

Berlin's Economic Minister Gregor Gysi says HypoVereinsbank is
responsible for the insolvency filing of paper and stationary
group Herlitz AG last Tuesday.

Mr. Gysi blamed the bank's reluctance to strike a deal for
Herlitz entry into Germany's growing list of insolvent
corporations.  The minister lashed out at the bank's refusal to
reasonably up its guarantee for a credit line to the company.

The EUR218 million credit line would have secured the operations
of Herlitz through March next year, Handelsblatt says.

The German daily says the banking consortium, led by Deutsche
Bank, was willing to provide EUR190 million of the credit.  The
difference of EUR28 million should have been covered by state
guarantees, in the view of the banks.

But the state governments of Berlin and Brandenburg were only
willing to provide cover for just EUR11 million, apparently
because the banking consortium owns nearly 75% of Herlitz.  They
expected HypoVereinsbank to pick up the tab being Herlitz's
largest creditor.

The Minister, however, believes thinks are looking bright ahead
despite application for insolvency.  He is confident the majority
of the company's 3,000 jobs could be saved.

"The insolvency procedure provides the opportunity to save the
healthy core of the company and thus the majority of jobs," he
told the paper.

Last year, the group generated sales of EUR438 million but it
incurred a loss that, at EUR50 million, was well above the
forecast level of EUR20 million, says the Germany daily. The
company reportedly has debts of about EUR360 million.


KIRCHGRUPPE: Insolvency Looms as Two Creditor Banks Quit Talks
--------------------------------------------------------------

Commerzbank and DZ Bank, two of the four-largest creditor banks
of KirchGruppe, have quit the "poker game" with KirchMedia's
minority shareholders, leaving the door open to bankruptcy.

"We have sat down at this poker table long enough - if there is
no game there is no game," a Commerzbank executive told the
Financial Times.

"The investors have shown that they are really not interested in
participating in the bridge financing, and if there is no bridge
financing there is no capital increase," he said.

The creditor banks have been pressing the investors for a 40%
contribution into a EUR150 million bridge loan for KirchMedia,
which now stands to default on a EUR460 million loan to Dresdner
Bank next week.  Investors, however, are only willing to pitch in
10%.

It is not yet clear whether Bayerische Landesbank and
HypoVereinsbank, the other two lenders to KirchMedia, are also
going to step back from the negotiating table.

It recently sent representatives to Los Angeles to hold talks
with News Corporation on the future of Premiere, Kirch's loss-
making pay-TV business. The two banks are sole lenders to
Premiere as well, the paper says.

Observers do not discount an insolvency filing this week or at
least early next week when it defaults on the obligation to
Dresdner Bank.

KirchMedia also recently failed to honor a EUR150 million payment
to Columbia, the US studio owned by Sony of Japan, two weeks ago,
the report adds.

An insolvency filing would be followed by the appointment of an
interim administrator, pending a review of KirchMedia's liquidity
position.

Under German law, the administrator would work together with the
current management to determine whether the business should be
rescued or liquidated, leaving room for a last-chance round of
talks between creditors, the paper says.


KIRCHGRUPPE: Talks Shift to Declaring KirchMedia Insolvent
----------------------------------------------------------

Will KirchMedia survive the week without filing for insolvency?

Sources close to the rescue negotiations between investors and
creditors say the talks are now headed in that direction and
bankruptcy may be declared any time within the week.

According to the Financial Times, the two blocks of players in
the negotiating table are still in disagreement over the
magnitude of aid either side should pitch into Kirch's coffers.

Citing an unnamed source, the paper said the plan involves an
EUR800 million capital injection to be shouldered by minority
investors of KirchMedia.  These investors include Rupert
Murdoch's News Corporation, Silvio Berlusconi's Mediaset and
Fininvest, as well as U.S. investment bank Lehman Brothers and
Saudi investor Prince Alwaleed.

The creditor banks, on the other hand, are supposed to handle the
EUR150 million bridging loan that KirchMedia needs to meet
critical obligations that are due soon.

But one source told the paper that the banks are allegedly
causing the stir, as they want the investors to provide 40% of
the bridging loan, higher than their 10% offer.

Another source working closely with the banks countered that the
investors, who will control 60% of KirchMedia if the current plan
is approved, are trying to "get everything without paying for
it."

"We are [now] trying to figure out what the implications of an
insolvency filing would be for the rescue plan," an executive
with one of the KirchMedia investors told the Financial Times,
confirming that the talks had indeed changed direction.

"Our understanding is that it would still give us about eight
weeks to persuade the court that we have a working plan," the
source said.



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


ALITALIA SPA: Dutch Court Rules Fokker Owes Alitalia EUR14.56 MM
----------------------------------------------------------------

An Amsterdam court has ruled that Alitalia SpA's EUR14.56 million
claim against bankrupt Dutch aviation group Fokker is valid, AFX
News reported Wednesday.

The Dutch aircraft manufacturer was declared bankrupt in March
1996. In 1997, Alitalia filed a EUR147.8 million claim against
the company. The Dutch court only recognized about 10% of the
amount.

Both parties have about three months to appeal the decision.
Alitalia will be considered as an unsecured creditor in Fokker's
bankruptcy if both parties agree to the court's ruling.



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


KPN NV: Phone Regulator Orders Tariff Cuts on Fixed-Mobile Calls
----------------------------------------------------------------

KPN Mobile, a unit of cash-strapped Royal KPN NV, has called
"unacceptable" the recent resolution issued by Dutch telecom
regulator Opta, ordering the firm to lower prices on fixed-to-
mobile line calls.

The resolution wants tariffs for such calls to be lowered to
0.1548 euros from the present rate of 0.1839 euros per minute
beginning May 1.  By December, the regulator wants the prices to
be cut further down to 0.1257 euros.

Other players in the Dutch market have also expressed similar
dismay on the decision.


KPN NV: Joe Nacchio Will Not Seek Re-Election to KPNQwest Board
---------------------------------------------------------------

KPNQwest, the leading pan-European data communications and
hosting company, announced yesterday that Joseph P. Nacchio,
Chairman and CEO of Qwest Communications International, will not
stand for re-election to the chairmanship of the Supervisory
Board at KPNQwest.

Qwest owns a 47% stake in KPNQwest and holds three seats on its
Supervisory Board. The other three seats are held by two
independents and one representative of KPN.

Details of the successor to Mr. Nacchio on the KPNQwest
Supervisory Board will be communicated at or before the KPNQwest
Annual General Meeting on May 10, 2002.

KPNQwest was formed as a joint venture of Dutch telecom giant
Royal KPN and US-based Qwest.

Contact Information: Piers Schreiber, Corporate Communications,
+31-23-568-7612, or piers.Schreiber@kpnqwest.com, or Jerry
Yohananov Investor Relations, +31-23-568-7602, or
jerry.yohananov@kpnqwest.com, both of KPNQwest.



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


LOT AIRLINES: Will Sign Airline Alliance Accord Today
-----------------------------------------------------

LOT Polish Airlines will sign today a strategic partnership
agreement to join a new international airline alliance, LOT
spokesman Leszek Chorowski said.

Details of the names of partners remain undisclosed until after
the signing.

According to the AFX News, British Airways PLC has earlier shown
interest in including LOT in its "OneWorld" alliance. However,
speculations have emerged from local reports that LOT might join
Lufthansa AG's "Star Alliance."

LOT has been searching for a new aviation partnership after the
bankruptcy of its parent company Swissair Group AG.

In 1999, the Swiss airline bought 37.6% stake in LOT for US$184
million, but its stake was cut to 25.1% due to subsequent share
issues. The Polish government now owns 67.96% of LOT, with
employees holding a 6.94% stake.



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


CLUBHAUS PLC: Shares on Hold After Missing Disclosure Deadline
--------------------------------------------------------------

Shares of Clubhaus Plc that are traded at the AIM index has been
suspended beginning Tuesday this week and will remain on hold
until April 10, reports AFX News.

According to the report, the suspension was imposed pending the
release of the troubled firm's interim results for the nine
months to September 30, 2001.

Under AIM rules, companies are required to publish their accounts
within 6 months of the period end.  The company, however, pledged
to meet the deadline, which follows a necessary court hearing to
review the group's proposed scheme of arrangement documents on
April 9.

It added that the documentation relating to the bondholders and
the proposed scheme of arrangement and that relating to the
preference shareholder will also be published on the same date.

The company said a substantial progress has already been made on
the proposed restructuring of the company's balance sheet and
finances as announced in February.


IMS GROUP: High Court Assigns Two Administrators, Says Report
-------------------------------------------------------------

UK telemarketing and telecom services provider IMS Group PLC has
called administrators, reports AFX News.

The report says the High Court in London has appointed Garry
Wilson and Simon Allport as joint administrators of the group.  
Both are insolvency practitioners licensed by the Institute of
Chartered Accountants for England and Wales.

Aside from providing telemarketing and telecommunication
services, the company also operates an automated call center in
Steeton (near Yorkshire Dales) that offers corporate clients
outsourced customer management services, information gathering,
and order fulfillment.

The company reported US$43.7 million revenues in October 2000,
with net income of US$3.8 million.  It latest full-year
disclosure valued assets at US$49.6 million and liabilities of
only US$24.5 million.

The report did not disclose the reason for putting the company
under administration.


INVENSYS PLC: Notification of Major Interests in Shares
-------------------------------------------------------

Invensys plc, London-based industrial automation manufacturer,
was informed Tuesday that on March 26, British fund management
and insurance group CGNU plc, on behalf of its subsidiary Morley
Fund Management Limited, declared the following shareholdings:


     BNY Norwich Union Nominees Ltd          44,040,920
     BT Globenet Nominees Ltd                    38,780
     Chase GA Group Nominees Ltd             56,041,806
     CUIM Nominee Ltd                        40,258,889
     RBSTB Nominees Ltd                       2,126,200
     
Total shareholdings involved on this announcement totals
142,506,595 ordinary shares of 25p each or an equivalent total
percentage of 4.07% of the total shares in issue.

For inquiries regarding this notification, please contact
Victoria Scarth, Senior Vice President, Corporate Marketing and
Communications a telephone no. 020 7821 3712.


INDEPENDENT INSURANCE: Spanish Policyholders Press for Payout
-------------------------------------------------------------
  
Bankrupt Independent Insurance has changed its stance towards
former Spanish policyholders after the latter instructed a
London-based attorney to force UK authorities for compensation.

The Financial Times says the failed insurance firm has pledged to
treat its former policyholders in France, Ireland and Spain
independently from one another.

This is contrary to its pronouncements last year when it said
that the policyholders in Spain were "unlikely" to get any
compensation similar to that received by 9,000 Irish clients.

Early this week, some 51 Spanish insurance brokers instructed
lawyer Inka Piegsa-Quischotte to institute all legal means to get
compensation for their clients.

The brokers represent policyholders with 383 unpaid insurance
claims totaling GBP2.3 million. The clients are believed to
include construction companies, textile manufacturers and retail
outlets, the paper says.

"My clients want to be treated in the same way as other overseas
policyholders and are frustrated at the pace of debt-recovery
proceedings," Ms. Piegsa-Quischotte told the paper.

Independent went into liquidation in June last year.


ITV DIGITAL: Co-owner Carlton on Review for Downgrade by Moody's
----------------------------------------------------------------

The uncertainty of what will come out of the decision to put ITV
Digital under administration has forced Moody's to review the
ratings of Carlton Communications Plc for possible downgrade.

The ratings agency said the review will involve the Baa2/Prime-2
long and short-term senior debt ratings, and the Baa3
exchangeable capital securities rating of Carlton.

Moody's said the review reflects its concerns about the ongoing
negative impact on the revenues and profitability of Carlton's
core media operations from the extended downturn in the UK TV
advertising market, and the consequent deterioration in the
group's debt protection measures.

The agency will also consider the costs and potential cash
savings that might result from the possible closure of ITV
Digital, as part of the review.  

Carlton co-owns ITV Digital along with Granada.


NTL INCORPORATED: Junk Corporate Ratings Slide Further to "D"
-------------------------------------------------------------

Standard & Poor's has again lowered the corporate credit rating
of cable network operator NTL Incorporated, this time "D" from
"CCC-".

The ratings agency said the downgrade follows the default by NTL
Communications Corp. on an interest payments due Monday for its
9.5%, 11.5%, and 11.875% senior notes.

S&P says it does not believe NTL can meet the payment by May 1 or
any day before the 30-day grace period lapses.  

"Recovery prospects for bondholders are deemed very weak, given
the security provided to bank lenders and the low valuations
attributed to cable assets," S&P said.

"NTL's liquidity position and financial flexibility are also
extremely weak and may be insufficient for the group to complete
its planned re-capitalization process by late 2002," S&P added.


NTL INCORPORATED: French Partners to Sell Stakes as Outlook Dims
----------------------------------------------------------------

NTL Inc.'s woes have crossed the English Channel and into France,
as its recent default on a bond interest payment has sent French
partners scrambling for buyers of their stakes in Noos.

According to the Financial Times, NTL's co-owners of the French
cable firm appear rattled by the default and have appointed an
American banker working for Lazard to seek potential buyers.

NTL owns 27% of Noos and has yet to pay the bulk of the EUR533
million price tag for the stake, previously owned by France
Telecom.  This payment is due next month.

The paper says it is unlikely that the British cable operator
will meet the obligation as it only has US$300 million left in
the bank and very much buried in debt.

Morgan Stanley Capital Partners IV, LLC, which holds 22.9 percent
of Noos, has also deferred final payments for its stake until
mid-May. As an interim measure, it has "syndicated" its shares
with other funds, the report says.

It is also rumored that Suez, the diversified French utility
company, might be open to offers for its controlling 50.1% stake
in Noos. The paper says the company has in the past indicated
that its communication interests are no longer deemed strategic.

There is no trouble, though, as regard finding buyers.  According
to the paper, possible takers are Liberty Media and AOL Time
Warner, which have both expressed interest in acquiring cable
assets in continental Europe.

The problem is: The sale would probably be painful for the
current owners who bought their stakes at the time when the
"technology bubble" was at its peak. They could be forced to sell
their holdings at a steep discount, the report says.


RAILTRACK GROUP: Puts on 'Hold' Suit Against Stephen Byers
----------------------------------------------------------

Railtrack Group backed out of a plan to ask a court yesterday to
force Transport Minister Stephen Byers to produce documents that
backed his decision to put its tracks unit under administration.

A spokesman, however, said the action was just put on hold and
not altogether dropped.  Accordingly, the company's board has
prioritized the recent offer made for its Channel Tunnel Rail
Link over the legal action it had earlier threatened to file.

The group had intended to petition a judge for the disclosure of
documents relating to Mr. Byers decision to put its operating
subsidiary into administration. Mr. Byers had refused to release
the documents.

Early this week, London & Continental Railways and Network Rail
made a GBP375 million offer for the Channel Tunnel asset.


UK COAL: Notification of Directors' Interests
---------------------------------------------

UK COAL, Britain's largest coal producer, declares the following
changes in directors' interests arising out of the operation of
its Bonus Share Matching Plan.

Under the Bonus Share Matching Plan, executive directors are
required to purchase ordinary shares in the Company (Shares) with
part of their annual bonus.  

These Shares are held in trust. Participants are entitled to
receive, after tax thereon, one additional Share free of charge
in return for every three Shares left in trust for three years.  

Entitlement to the additional Shares is normally lost if the
participant leaves the Company's employment.

On April 3, 2002 the following Shares were purchased, at a price
of GBP1.02 per Share, with 50% of each executive director's bonus
for 2001.  

These are held by Mourant & Co Trustees Limited (The Trustee of
UK COAL Employee Share Trust) as nominee for the director
concerned.

DIRECTOR                    SHARES PURCHASED

G A McPhie                   41,471
M Garness                    22,004
P S O'Brien                  23,387

In addition, the Trustee purchased a further 27,633 Shares to
satisfy potential entitlements of executive directors to further
Shares under this plan in three years' time.  

The above executive directors are deemed for The Companies Act
purposes to be interested in all the Shares held by UK COAL
Employee Share Trust.

As a result of the transactions referred to above, the executive
directors are interested in the following Shares (excluding
Shares to which they may become entitled, subject to satisfaction
of any relevant conditions, under the rules of the Long Term
Incentive Plan and Bonus Share Matching Plan):

DIRECTOR                     TOTAL SHARE INTERESTS

G A McPhie                   130,258
M Garness                     99,008
P S O'Brien                  128,441

The UK COAL Employee Share Trust holds a total of 58,664 Shares,
representing 0.04% of the Company's issued share capital
(excluding the shares held as nominees for executive directors
under the Bonus Share Matching Plan). The executive directors are
deemed for Companies Act purposes to be interested in all the
Shares held by UK COAL Employee Share Trust.


VERSATEL TELECOM: Put on "CreditWatch" due to Proposal Amendment
----------------------------------------------------------------

A change in the proposed debt-for-equity exchange program pledged
by Versatel Telecom earlier has warranted its inclusion in
Standard & Poor's "CreditWatch."

Under the original terms that cover all the company's outstanding
high-yield and convertible debt, the company will barter a mix of
cash and shares for the notes.

Recently, the offer was changed to increase the cash and equity
available to bondholders, should they vote in favor of the
proposal.  This, however, comes with the explicit possibility of
the company seeking protection from its creditors through a court
filing, S&P said.

In addition to this, the company has also amended the threshold
for acceptance of the offer, making it more than 99% of
bondholders. If between 75% and 99% accept, the holding company
will go to court with the intention of imposing the restructure
on all bondholders.

S&P has deemed the warning as tantamount to a default.  The
ratings agency said that should the company seek protection from
its creditors or fail to meet interest coupon payments in a full
and timely fashion, its "CC" ratings would be lowered to "D".

The agency said the CreditWatch status will be resolved following
acceptance or rejection of the offer.

For more information, contact Standard & Poor's through
simon_redmond@standardandpoors.com or
peter_kernan@standardandpoors.com


WILLIAM BAIRD: Issues "Profit Warning" After Poor 2001 Results
--------------------------------------------------------------

Clothing retailer William Baird issued a veiled profit warning
early this week after disclosing a huge drop in profits last
year.

According to the Telegraph, the company made only GBP4.7 million
profit before tax and exceptionals in the 13 months to February
2, compared to the GBP12.8 million recorded in 2000.

CEO Ruth Henderson said that a misjudgment on where the clothing
trends were headed next caused the poor performance in 2001.

"After six years of steady growth, we suffered in the last
quarter of last year. We had too much tailoring. We had got too
conservative. We'd followed the best sellers once too often and
were looking backwards, not forwards," she told the Telegraph.

"It will take us a wee while to get back on track, but hopefully
by the second half," she said.

In sharp contrast, most of Baird's clothing rivals are
experiencing buoyant trading conditions, the paper said.  

The company tabled GBP16.5 million of exceptional charges, which
included the GBP500,000 legal costs paid to Marks & Spencer's and
a GBP7.8 million provision to cover industrial diseases claims
relating to an engineering business sold 10 years ago.

The company made a loss before tax of GBP11.8 million for the 13-
month period.  When compared to 2000 figures, the loss looks
benign, though.  The company absorbed GBP19 million in losses
before tax in 2000 due to an even bigger exceptional charge that
nearly reached GBP32 million.

The clothing retailer owns Windsmoor, Planet and Precis Petite.


WILLIAM BAIRD: Reveals Preliminary Results Ending Feb. 2, 2002
--------------------------------------------------------------
                                                                     
William Baird plc, the UK based concession retailer in clothing,
announces its financial results for the period ended 2 February
2002.

Results Summary  
                       13 months to  12 months to   12 months to
                        2.02.2002    31.12.2001     31.12.2000
                       GBP million   GBP million    GBP million
TURNOVER     
Womenswear & Rainwear     145.1         133.5         141.8
Active and Casualwear      80.1          73.9          83.2
                          ______        ______        ______

Continuing Operations     225.2         207.4         225.0
Discontinued Operations    12.1          11.4         167.3
                          ______        ______        ______
                          237.3         218.8         392.3
                          ______        ______        ______

OPERATING PROFIT        
Womenswear and Rainwear     9.4           8.6          14.6
Active and Casualwear      (3.3)         (3.2)         (0.6)
                          ______        ______        ______

                            
Continuing Operations       6.1           5.4          14.0
Discontinued Operations      -             -            2.3
                          ______        ______        ______
                            6.1           5.4          16.3

Operating exceptional items(4.9)         (4.9)         (5.3)
Share of losses
of Associated Undertakings (0.3)         (0.3)         (0.6)
                          ______        ______        ______
                            0.9           0.2          10.4

Non-Operating Exceptional Items
                          (11.6)        (11.6)        (26.5)
                          ______        ______        ______
Loss before interest & tax(10.7)        (11.4)        (16.1)
                          ______        ______        ______


The company highlights its preliminary results for the period
ended 2 February 2002 as follows:

- Womenswear brands of Windsmoor, Planet and Precis Petite
increased sales by 7% (12 months to December).

- Sales for the continuing businesses including rainwear reduced
by 8% (12 months to December).

- Portfolio simplified by disposals of Van Gils, Corporatewear,
Sri Lankan factories and the licensing of Dannimac rainwear.

- Exceptional items were o16.5 million (2000: o31.8 million).

- Year end net debt reduced to o12.9 million (22% gearing) from
o19.2 million (28% gearing).

- Capital restructuring approved enabling payment of 2.0p interim
dividend and 1.0p second interim dividend to be accounted for in
2002/3.

- Year end extended to end of January; comparative 12 month
figures shown.

Commenting on the results, Sir David Cooksey, Chairman, said:
"2001/2 has been a year of further simplification of Baird's
portfolio of businesses, with the disposals of Van Gils menswear,
Baird Corporatewear, two of the three Sri Lankan factories and
the licensing of Dannimac.

The trading performance in the final four months of the year fell
significantly behind original expectations. Notwithstanding this,
sales in each of the womenswear brands of Windsmoor, Planet and
Precis Petite exceeded the previous year's level and each of them
remained profitable.

The trading difficulties experienced at Lowe Alpine in 2000
continued in 2001. However, changes have been made and the
turnaround required to restore profitability is underway. The
Lowe Alpine brand is a strong one and the Board has confidence in
the long term value of this
business.

Capital restructuring proposals to release o32.2 million from the
share premium account into distributable reserves were approved
by shareholders on December 6, 2001 and were confirmed by the
Court of Session in Scotland on 28 February 2002.

As the capital restructuring was effective after the end of the
financial year, the year-end accounts do not provide for any
dividends. On March 1, 2002 the Board declared a first interim
dividend of 2.0p per ordinary share, which was paid on March 28,
2002 to shareholders on the register on March 15, 2002.

In the light of the full year results, in particular reflecting
disappointing trading in the last four months of the financial
year, the Board has concluded that the total dividend for 2001/02
should be 3.0p and accordingly has declared a second interim
dividend of 1.0p per ordinary share which will be paid on June 7,
2002 to shareholders on the register on May 10, 2002. At this
level the dividend will be covered approximately 1.0 times by
pre-exceptional earnings per
share.

Looking ahead, from this base level the Board intends to apply a
progressive dividend policy as earnings per share growth and the
restoration of dividend cover allow.

In 2002/03 the Board expects to rebalance the total dividend
between the interim and final payments.

Now that the reshaping of the Group is nearly complete,
management can focus on re-establishing growth in the
profitability of the womenswear division and the recovery in the
active sportswear and casualwear division."

Contact Information:

William Baird plc Tel: 020 7612 9600
Ruth Henderson, Chief Executive

Steve Roberts, Finance Director
Gavin Anderson & Co Tel: 020 7554 1400
Neil Garnett


WILLIAM BAIRD: Notification of Directors' Interests
---------------------------------------------------

William Baird PLC, ailing London-based retail clothing group,
announced Wednesday that the company's director, Ruth Margaret
Henderson acquired at 0.50p per share 20,000 50p ordinary shares
or about 0.017% of the total shares in issue.

Subsequently, she now holds 40,000 ordinary shares or about
0.034% of the total outstanding shares issued by the company.

Similarly, the company announced Wednesday that the company's
director, Stephen John Roberts, purchased at 0.50p per share
30,000 50p ordinary shares or about 0.026% of the total shares in
issue. He owns the same shareholdings after the acquisition.

For inquiries regarding this announcement, please contact Mrs P M
Alsop, the company secretary, at telephone no. 020 7612 9600.

                                     ***********

       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,
Larri-Nil Veloso 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 US$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 US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


                  * * * End of Transmission * * *