/raid1/www/Hosts/bankrupt/TCREUR_Public/020417.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, April 17, 2002, Vol. 3, No. 75


                            Headlines

* F R A N C E *

MOULINEX: SEB Ownership Question to Be Decided Next Month

G E R M A N Y *

BIODATA INFORMATION: Former Board Member Altura Ewers Files Case
CEYONIQ AG: Full Year 2001 Results Show GBP 90.4MM in Losses
CEYONIQ AG: GROUP Technologies Not Affected by Ceyoniq Insolvency
INTERSHOP COMMUNICATIONS: Names Dr. Juergen Schoettler as CFO
KIRCHPAYTV: BSkyB Denies Rumors It Is About to Invest
PHILIPP HOLZMANN: 50 Ex-managers Probed for 1999 Insolvency

* I R E L A N D *

DATALEX PLC: Announces Voluntary De-listing From NASDAQ
DATALEX PLC: Announces Management Board Changes

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

PHARMING GROUP: Notification of Annual Shareholders' Meeting

* S P A I N *

IBERIA SA: Reports Sterling Performance During First Quarter

* S W E D E N *

LM ERICSSON: Corners EUR 400MM 3G Network Supply Contract

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

ABB LTD.: Siemens Out of the Running for Structured Finance Unit

* U N I T E D   K I N G D O M *

CLUBHAUS PLC: Reaches Deal With Bondholders, But Still Needs Cash
COLT TELECOM: Moody's Cites Industry Downturn for B3 Downgrade
EQUITABLE LIFE: Files GBP 2.6BB Damage Claim From Ex-auditor
ITV Digital:  Makes Final GBP 74MM Offer to Football League
ITV DIGITAL: Administrator, League Given 7 Days to Solve Impasse
JOHN LAING: Will Make Changes on Management Board  
JOHN LAING: Completes GBP40MM Sale of Property Division
PACE MICRO: Blames ITV Digital, NTL Woes in Latest Profit Warning
TELEWEST COMMUNICATIONS: Shares Hit New Low on Investor Fears
TELEWEST COMMUNICATIONS: Company Profile


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


MOULINEX: SEB Ownership Question to Be Decided Next Month
---------------------------------------------------------

The court of appeals in Versailles has commenced its review of
the decision handed by the Nantes Commercial Court, awarding part
of Moulinex to SEB, says Le Figaro/FT Information.

The report says a decision could be made by May 2.  Moulinex
sought the review, claiming that the ruling was issued for
political reasons.  The Nantes court examined the various bids
for the company late last year, including that of SEB.

Meanwhile, the report says U.S. group Conair-Babyliss is
allegedly interested in acquiring the Moulinex group.


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


BIODATA INFORMATION: Former Board Member Altura Ewers Files Case
----------------------------------------------------------------

Publicly listed data encryption company Biodata Information
Technology AG faces two lawsuits amounting to US$100 million, a
company statement said Monday.

Altura Ewers, the company's former Chief Sales Officer, filed two
lawsuits against his former employer at the U.S. Federal Court in
San Francisco.

After his term as CSO, Ewers remained CEO of the U.S. subsidiary
"Biodata North America Inc.", until his discharge without notice
on March 22, 2002. Simultaneously, Ewers was prohibited from
accessing the premises of "Biodata North America Inc.".

The first lawsuit totaling US$50 million concerns the selling of
the insolvent group's operative business on February 11, 2002,
and sale of the U.S. subsidiary on March 20, 2002.

The regular insolvency administration transferred all AG owned
rights concerning the firewall and Babylon encryption products to
Germany-based "Biodata Systems GmbH" after numerous bidding turns
and negotiations with several international investors.

In their complaint, Ewers and U.S.VESTOR now object to the sale
of the business.

Initially, Ewers participated in the bidding process, but
eventually, Biodata Systems' bid was sustained due to a
significantly better proposal and a business concept for a staff
of more than 50 employees.

In the insolvency administrator's view, the accusations are
unfounded.

A second US$50 million lawsuit covers legal questions concerning
partnership agreements between parent "Biodata Information
Technology AG" and subsidiary "Biodata North America Inc.". Ewers
claims breaches in contract regarding product shipments, alleging
the shipments violated an exclusive partnership agreement between
the companies.

The exclusive partnership agreement defines distribution rights
for Biodata products in North, Central and South America.

According to the dismissed executive, the named shipments had to
be processed via the U.S. subsidiary, an apprehension which is
explicitly repulsed by the insolvency administration as
unsubstantiated.

Independent of the present juridicial thrust, legal action has
been initiated against the former CEO of the U.S. business. Due
to strong suspicion concerning irregularities in the U.S.
business operation in Ewers' area of accountability, he was
removed from all offices in mid-March 2002. In 2001, Ewers
stepped down as CSO of the Biodata group.

Editorial Contact:
Biodata Information Technology AG
Burg Lichtenfels
35104 Lichtenfels
Tel. +49 (0) 6454 / 9120-0
Fax +49 (0) 6454 / 9120-180

Dithmar Westhelle Assenmacher Zwingmann
Wilhelmshoher Allee 270
34131 Kassel
Tel. +49 (0) 561 / 3166-0
Fax +49 (0) 561 / 3166-312


CEYONIQ AG: Full Year 2001 Results Show GBP 90.4MM in Losses
------------------------------------------------------------

Global software management solutions service company Ceyoniq AG,
for the year 2001, recorded GBP 90.4MM in losses, a company
statement said.

On March 21, 2002 achieved in a difficult market environment, the
group increased sales revenue to EUR102.1 million from EUR74.2
million last year. This is an increase of 37.6%.

In a challenging global software market, CEYONIQ achieved a
positive EBITDA of EUR5.7 million.

In the fiscal year 2001, 47.1% (61% in 2000) came from high-
profit license revenue, followed by services with 25.1% (23% in
2000), maintenance revenue with 20.1% (10% in 2000) and trade
goods with 7.7% (6% in 2000).

The shift in the turnover was due to the consolidation of the
U.S. subsidiary in January this year.

The extra asset values of CEYONIQ Inc., USA (formerly TREEV) and
Insiders Information Management AG, Kaiserslautern, were reduced
by one-off write-downs in the amount of EUR60.0 million, in order
to consider the challenging global economic environment and
reduced expectations.

EUR54.0 million of this figure was applied to CEYONIQ Inc., which
was acquired by issuing 6.65 million shares, and EUR6.0 million
to Insiders, acquired solely by a share transfer.

As a safety measure to allow for outstanding risks, revaluations
were carried out to receivables, which reduced the group results
by EUR28.7 million.

This process incurred one-time restructuring costs of
approximately EUR8 million, consisting mainly of personnel costs,
severance compensation, rental charges for empty properties after
closure of some locations, and other one-time costs such as the
extraordinary General Meeting of last year and the rebranding
campaign.

The cost of research and development within the group was
dominated by the completion of the new product portfolio CEYONIQ
Solutions and amounted to EUR27 million. Research and development
costs in 2002 will be significantly lower.

CEYONIQ is concentrating on the reduction of internal costs, and
is consistently consolidating and expanding its core competence.
The divestment of subsidiary companies not belonging to the core
business, such as HAVI Computer Services, achieve both a
reduction in operating costs and an increase in liquidity.

Due to the process improvements and organizational streamlining
accomplished to date, CEYONIQ will achieve a cost savings in 2002
of more than EUR35. Following a weak 1st Quarter due to seasonal
influences, an increased order intake is already being recorded
for the 2nd Quarter.

Figures (in EUR Million)  -31.12.01    -31.12.00
Sales revenue               102.1        74.2
EBITDA                        5.7        22.8
Goodwill depreciation        69.4         1.9
Depreciation on receivables  28.7         0.0
Other depreciations          12.6         6.3
EBIT                       -105.0        14.5
EBT                        -108.7        13.7
Negative Group result       -90.4        13.7
EPS (figures in Euro)        -3.40        0.45
Equity ratio                 35.1%       51.7%

Numbers 2000 without earnings from public offering

Your contact:
CEYONIQ Aktiengesellschaft Investor Relations
Winterstrasse 49
D-33649 Bielefeld
Tel.: ++49 (0) 521/ 93 18 - 2001
Fax: ++49 (0) 521/ 93 18 - 1029
E-mail: investor@ceyoniq.com
   

CEYONIQ AG: GROUP Technologies Not Affected by Ceyoniq Insolvency
-----------------------------------------------------------------

Ceyoniq AG has filed for insolvency, and although it holds a 60%
stake in GROUP Technologies AG, GROUP Technologies will not be
affected by the threat.

In view of the number of orders on hand for various projects and
its extensive scenario analyses, GROUP Technologies AG is will
continue operations in the current fiscal year.

Even in the event of a full value adjustment of the entire loan
of EUR9.6 million that has been granted to Ceyoniq AG, Bielefeld,
the company would still have over EUR7 million in funds at its
free disposal.

GROUP Technologies's business is currently operating according to
plans. The company is in the process of achieving another
exceptionally positive EBIT in the current fiscal year. Ceyoniq
AG's application for insolvency is not expected to have a
detrimental effect on this area either.

The Board of GROUP Technologies AG is optimistic that these
developments will lead to a more expeditious yet successful close
out of the company's divestiture from Ceyoniq AG, a process
already underway, than originally planned.


INTERSHOP COMMUNICATIONS: Names Dr. Juergen Schoettler as CFO
-------------------------------------------------------------

Intershop Communications AG, an eBusiness solutions provider
serving global enterprises, announced Monday the appointment of
Dr. Juergen Schoettler as Chief Financial Officer.

From the company's headquarters in Jena, Germany, Dr. Schoettler
will direct Finance, Human Resources, Information Technology,
Legal and General Administration. He will report directly to the
CEO, Stephan Schambach.

Dr. Schoettler holds a degree in Business Administration from the
University of Giessen and later received his Ph.D. from the
University of Mannheim, Germany. He previously held executive
positions at Philips Electronics Germany and Alcan Germany.
Before joining Intershop, he was CFO and Managing Director at
Messer Griesheim, a leading company in the technical gases
industry.

Intershop Communications AG is a leading provider of complete
standard e-business-software solutions for global businesses who
want to web-enable and centrally manage their commerce processes.

The Intershop Enfinity commerce platform, combined with proven,
flexible industry and cross-industry solutions, enables companies
to manage multiple business units from a single commerce
platform, optimize their business relationships, improve business
efficiencies and cut costs to increase profit margins.

Intershop has more than 2,000 customers worldwide in retail,
high-tech and manufacturing, media, telecommunications and
financial services.

More information about Intershop can be found on the Web at
http://www.intershop.com.

Investor Relations: Klaus F. Gruendel, T: +49-40-23709-128, F:
+49-40-23709-111, k.gruendel@intershop.com, Press: Heiner
Schaumann, T: +49-3641-50-1000, F: +49-3641-50-1002,
h.schaumann@intershop.com


KIRCHPAYTV: BSkyB Denies Rumors It Is About to Invest
-----------------------------------------------------

British Sky Broadcasting Group Plc denied Monday that it is about
to shell out money to KirchPayTV and help rescue the troubled
Kirch unit now on the verge of declaring insolvency.

The British cable group, which holds 22% of the German firm, says
its policy not to invest more money in the business remains firm.  
The company denied reports that CEO Tony Ball had held talks with
KirchPayTV over the weekend regarding the possibility of taking
control of Premiere.

In Berlin, however, the Die Welt newspaper said News Corp.
chairman Rupert Murdoch had recently expressed willingness to
invest US$600 million in Premiere in return for a controlling
stake.  News Corp. is a major shareholder of BSkyB.

Kirch restructuring adviser and interim administrator Wolfgang
van Betteray recently admitted that KirchPayTV is about to file
for insolvency.

Failure to come up with a rescue plan for the unit would force it
to follow KirchMedia, which also declared insolvency last week.  
Some suggest the only way BSkyB can recover the EUR1.6 billion it
used to buy the stake in KirchPayTV is by assuming the business.


PHILIPP HOLZMANN: 50 Ex-managers Probed for 1999 Insolvency
-----------------------------------------------------------

Former Philipp Holzmann Chairmen Lothar Mayer and Heinrich
Binder, including 50 executives, face several criminal
indictments related to the first insolvency filing of the
construction firm in 1999.

According to Frankfurter Allgemeine Zeitung, the former
executives, along with consultant engineers and banks, are
currently being investigated for fraud, creative accounting and
obtaining money by false pretences.

The paper says the investigations were prompted by a charge of
fraud and balance sheet falsification brought by Mr. Binder
against Mr. Mayer soon after the firm declared insolvency in
1999.

Frankfurt public prosecutors suspect that the bulk of the EUR2.4-
billion-debt that brought down the company three years ago was
incurred during Mr. Mayer's watch.

Prosecutor Job Tilmann expects the legal proceedings against the
former executives to be lengthy and may possibly continue until
the company is liquidated.


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


DATALEX PLC: Announces Voluntary De-listing From NASDAQ
-------------------------------------------------------

Datalex, a technology solutions provider serving the global
travel industry, announced Monday that it will voluntarily de-
list its American Depositary Recipts from the NASDAQ National
Market in the U.S.

As a result, the Company's ADRs will be eligible for quotation in
the over-the-counter (OTC) market. The Company has sent a letter
to NASDAQ Listing Qualifications requesting that the Company's
ADRs be de-listed from the exchange as of the close of business
on April 25th, 2002.

On April 25, 2002, Datalex will also convert its secondary
listing on the Irish Stock Exchange (ISEQ) to a primary listing.

Commenting on the decision to voluntarily de-list from NASDAQ,
Neil Beck, Chief Executive Officer of Datalex said that the move
will provide the company considerable savings both financially
and in terms of the resources required to maintain a separate
U.S. listing.

For more information, contact:

Frank Mantero
Global PR Director, Datalex
+ 1 770 255 2470
frank.mantero@datalex.com

Geraldine Van Esbeck
Slattery PR
+ 353 1 6614055
gvanesbeck@slatterypr.ie


DATALEX PLC: Announces Management Board Changes
-----------------------------------------------

Datalex's chief executive Neil Beck announced Monday that there
will be a number of changes to the management team of Datalex and
to the composition of the Board of Directors.

Neil Wilson, founder of Datalex and its largest shareholder will
step down from his role as Executive Chairman. As Datalex's
largest individual shareholder, Wilson will retain his board
seat.

Wilson has been asked to lead a Sales Task Force formed to
maximize Datalex's response to a recovering economy. Reporting to
CEO Neil Beck, Wilson will have Senior Vice President -
Commercial, Damian Hickey, Vice President Business Development
Justin Morshead and Chief Technology Officer James Peters on the
Task Force representing a multi-dimensional team to generate
additional market demand.

Morshead, an executive with Datalex since the acquisition in 1999
of the company he co-founded, Teamwork Solutions, will retire
from the Company in June after working with Wilson to establish
the Task Force.

Beck also announced that Paul Addy and James Peters, part of the
Datalex executive team, will resign as executive members of the
Board as part of a longer range plan to create a primarily non-
executive Board. "It has always been my intention to change the
composition of the Board to one that is primarily non-executive.
I am delighted that Michael Quinn, formerly Chief Executive of
ICC Bank, will be taking over as Chairman," said Beck.

Datalex floated in October 2000. However, its shares crashed by
95pc in value in the 18 months since the company's initial public
offering. After making heavy losses, the company cut its
workforce to 200 last year.

In 2001, it lost US$29.1 million on revenues of US$28.5 million,
the Irish Independent reports. Datalex will be announcing Q1 2002
results on May 14, 2001.

Datalex, founded in 1985, is headquartered in Dublin, Ireland,
and maintains offices throughout the world: Europe (Amsterdam,
Frankfurt, Paris, Manchester); USA (Atlanta, Petaluma); and Asia-
Pacific (Melbourne, Singapore).


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


PHARMING GROUP: Notification of Annual Shareholders' Meeting
------------------------------------------------------------
  
Troubled biotech and research company Pharming Group N.V.
announces that its annual shareholders' meeting will be held at
3:00p.m. on May 21, 2002 .

Three weeks prior to the meeting, the company will make available
the agenda of the meeting and the annual report for 2001 on its
Web site and through shareholder information distribution
channels. The meeting will be held at the company's facility in
Leiden.

In August 2001, Pharming  filed for legal moratorium ("surseance"
or suspension of payment). Pharming received legal moratorium
status based on a decision by the District Court  in The  Hague.  

The  legal  moratorium  provides  protection  from creditors of
Pharming for a limited time period and allows  for the
continuation of key operations and clinical programs of the
company.  

In December 2001, the district court in The Hague granted a final
legal moratorium for Pharming Group and its remaining Dutch
subsidiaries until July 2002. Pharming intends to restructure its
current assets and operations as well as raise additional capital
to continue its mission  to  develop innovative
biopharmaceuticals.

Pharming Group N.V. focuses on the development, production  and
commercialization of human therapeutic proteins to be  used  in
highly innovative therapies. The company's product portfolio is
aimed  at treatments for genetic disorders,  blood-related
disorders, infectious and inflammatory diseases, tissue and bone  
damage,  and surgical and traumatic bleeding.  

Pharming's proprietary technologies include the production of
biopharmaceuticals in the milk of transgenic animals, as well as
the purification of biopharmaceuticals from milk, formulation and
application of these biopharmaceuticals.

For more information, contact Rein Strijker of Pharming Group
N.V. at telephone no.: +31 (0)71 524 7406.


=========
S P A I N
=========


IBERIA SA: Reports Sterling Performance During First Quarter
------------------------------------------------------------

Spanish carrier Iberia SA surprised the air industry Monday when
it reported superior results for the first quarter, sending its
shares flying to nearly 7%.

The carrier's losses for the three months to March narrowed to
EUR5 million from EUR90 million last year, while its earnings
before interest, taxes, depreciation, amortization and rentals
doubled that of 2000.  The company also recorded a 1% increase in
sales growth and a 6% deflation of costs.

According to the Financial Times, the key to this early recovery
from the September 11-triggered slump was the company's series of
unpopular job cuts and decision to close unprofitable routes.

The paper says the carrier ended long-term lease agreements for
aircraft and crew, delayed the arrival of new aircraft and
retired several older models in its fleet. It also cut its winter
schedule by 11%.  In addition, the airline also slashed its
workforce by 10%.

This plan was provisioned last year, which means that the Spanish
carrier can be expected to table savings of EUR54 million in 2002
and EUR108 million in 2003, the paper adds.

The company boasted a capacity rate of 69.8% in the same quarter,
recording the second-highest level for the first quarter in the
past 12 years.  The carrier says this improved occupancy was
noted across its short-haul, medium-range and long-distance
flights.  The carrier attributed this success to better
management of flight capacity.  

Due to this improved financial position, the carrier says it will
now take delivery of three Airbus A320 aircraft. The paper says
management is also not ruling out the likelihood of renewing some
of its cancelled wet-lease contracts.

Iberia's share closed at EUR1.78 Monday.


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


LM ERICSSON: Corners EUR 400MM 3G Network Supply Contract
---------------------------------------------------------
    
Restructuring Swedish telecom equipment maker LM Ericsson
announced Monday that it had won a EUR400 million contract to
help roll-out the 3G networks in Spain and Germany.

The company said the three-year contract to supply network
equipment was inked with Spain's Telefonica Moviles.  The order
is a rare development in the telecom sector, whose players have
held back investments until better times.

According to Reuters, Ericsson will deploy more than 700 base
stations to Spain to pave the way for the 3G rollout expected to
happen in the second-half of this year.  

Company spokesman James Borup said Ericsson took home the "lion
share" in the Germany rollout.  The other supplier in the country
is Nortel Networks.

Reuters says the order is expected to boost the company's
finances.  It has been struggling to return to profit by cutting
costs, but badly needs new orders to avoid cutting its production
capacity still further.

But analysts are still unimpressed.  According to Reuters, they
expect the company to report a first-quarter pre-tax loss of
almost five billion crowns on Monday due to falling sales and
orders.  

"For an initial order, 400 million euros is a lot. But it is too
early to talk about a turnaround for Ericsson, it will take more
orders than that," one analyst told Reuters.


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


ABB LTD.: Siemens Out of the Running for Structured Finance Unit
----------------------------------------------------------------

Siemens AG has dropped out of the race to acquire the structured
finance unit of ABB Ltd., virtually handing the trophy to GE
Capital seen as the only buyer left in the field, says Reuters.

But along with Siemens' departure arose the prospects of getting
a good price for the unit.  The stricken company is under
pressure to dispose of some assets to address its short-term
liquidity crisis, leaving it little room to negotiate a
competitive offer.  

Now with only one bidder left, the price is expected to dip
further.  Analysts had earlier projected that the unit could
command as high as US$600 million.  Unit chief Lennart Blechert
recently told Reuters he expects bids to be less than that.

Siemens did not give any reason for not continuing negotiations
with the company.  The German company merely confirmed rumors
that it held talks with the cash-strapped engineering group.

"We were in talks, we looked at it in detail and we decided not
to pursue the discussions," a spokesman for Siemens told Reuters.

Should ABB get less than US$500 million for the unit, it will
likely have to take a goodwill charge on the sale, says the news
agency.  

Industry observers, however, do not discount the possibility that
Citibank, CSFB or Credit Lyonnais would bid for the unit.  
Citibank and CSFB, together with Barclays Plc are the lead
managers to a US$3.0 billion credit running to end-December that
ABB negotiated earlier this month, staving off a credit crisis.

Goldman Sachs is adviser for the sale.


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


CLUBHAUS PLC: Reaches Deal With Bondholders, But Still Needs Cash
-----------------------------------------------------------------  

Clubhaus, the debt-laden golf club owner, will soon be controlled
by bondholders whose majority have approved a proposal to
exchange most of their bonds for equity.

According to Sharecast, some 81% of the bondholders have given
their nod to the plan to write-off GBP45 million worth of bonds
for an 80% control of the company.  The troubled golf operator
owes bondholders a total of GBP60 million.

The remaining bonds will have a 6% coupon until the end of
December 2002, 8% next year and 12% from then onwards, Sharecast
says.

Under the proposal, Marylebone Warwick Balfour will also convert
its preference shares and the concomitant dividends into ordinary
shares, giving it 9% of the company.  Existing shareholders will
end up owning only 11% of Clubhaus.

But despite reaching this agreement with bondholders, the paper
says the golf club operator still needs to dispose some assets to
raise cash to reduce its net debt of GBP56 million and comply
with the conditions of its GBP41 million loan facility and a
GBP1.3 million overdraft.


COLT TELECOM: Moody's Cites Industry Downturn for B3 Downgrade
--------------------------------------------------------------
    
Moody's downgraded Friday the ratings of Colt Telecom Group Plc
to B3 from B1 due to the continuing slump in the market where it
operates and concerns over its long-term ability to raise cash in
line with Moody's expectations.

The latest ratings actions affected approximately US$2.0 billion
of debt securities.  Moody's said the downgrade mirrors the
slower than anticipated growth trends that in turn reflect the
slower growth of its market sector.

The ratings agency believes only an improvement in the market can
turn around the negative outlook of Colt.  Moody's said the bleak
market condition is undermining the company's "ability to
ultimately grow cash flow to a level sufficient to adequately
cover on-going maintenance and success based capital
expenditures."

But despite the negative outlook, Moody's said the company still
remains a viable business.  The ratings firm pointed out the
company's low cost of debt service at 5.5% per annum, as one of
its many advantages.  

Moody's also underlined the company's cash on hand in the medium
term, which it says is sufficient to supplement cash interest
expense and fund capital expenditures.

"The ratings continue to be supported by COLT's strong liquidity
position and balance sheet (cash and liquid resources of GBP1.3
billion versus GBP1.3 billion in long-term debt at YE 2001) as
well as the continued support of the company's equity holders,"
Moody's said.

These are now the new ratings of the company:

Senior implied rating = to B3 from B1

Senior unsecured issuer rating = to B3 from B1

Senior unsecured bond rating = to B3 from B1

The London-based company is a leading provider of high bandwidth
data, voice and telecommunication services, to businesses and
governmental organizations in Europe. The company currently has
operations in 32 European cities in 13 countries.

For more information, contact:

London
Christian Rauch
Senior Vice President
European Corporate Finance
Moody's Investors Service Ltd.
44 20 7772 5454

London
Michael West
VP - Senior Credit Officer
European Corporate Finance
Moody's Investors Service Ltd.
44 20 7772 5454


EQUITABLE LIFE: Files GBP 2.6BB Damage Claim From Ex-auditor
------------------------------------------------------------
  
Equitable Life sued Monday former auditor Ernst & Young for its
role in the guaranteed annuity crisis that nearly brought the
company down early this year, reports Times Online.

The paper says the troubled mutual life insurer brought the case
before the High Court, arguing that the auditor should not have
cleared its books, given the potentially huge liabilities it
faced to holders of guaranteed pensions.  The insurer says its
statutory account for 1997 to 1999 should have had provisions for
guaranteed annuity liabilities.

The company is seeking as much as GBP2.6 billion from the
accounting firm.  Experts believe the society will only get
between 10% and 30% of its original claim.  This estimate is
based on similar cases in the past, says the report.

Equitable CEO Charles Thomson also believes his company was
unlikely to receive the full amount.

Ernst & Young, for its part, says it is surprised that the
insurer instituted the suit at a time that "various inquiries
still taking place, with which [it is] fully co-operating."  
Nonetheless, the firm says it will mount a vigorous defense.

"We are confident there is no basis for this claim. We note the
society's intention 'to resist opportunistic claims and those
based on hindsight' and we believe that this claim falls into
that category," Ernst & Young said in a statement.

Meanwhile, the company announced an increased in the level of
exit penalty -- known as the market value adjuster -- from 10% to
14% of the funds of those wishing to leave early.  Maturing
policies will also suffer a 4% reduction.

In addition, due to the weak investment returns, it is also
nixing an announcement of interim bonus for 2002.  The company
also admitted that it had reduced the non-guaranteed final bonus
for the last half of 2001 from 3% to 2%.

Policyholders are expected to deplore the bonus cuts and the
escalation of exit penalty.  It was only three months ago that
they had agreed to a compromise deal that was supposed to
strengthen the company's finances.

Under the deal, holders of guaranteed pensions gave up the
guarantees for a 17.5% bonus to their policies. People without
guarantees were given 2.5% but can no longer sue the society for
mis-selling.


ITV Digital:  Makes Final GBP 74MM Offer to Football League
-----------------------------------------------------------

It's now a take-it-or-leave-it scenario between ITV Digital and
the Football League.  The near-bankrupt digital network says its
final offer to the League is only GBP74 million.

According to The Times, club chairmen must now weigh the options
of going to court in hopes of getting a better deal or take the
money and sign a new contract with a different channel.  


On Monday, League CEO David Burns, in a BBC Radio 4 Today
program, hinted that the soccer association might be willing to
take just GBP100 million of the GBP178 million the channel still
owes.

Administrator Nick Dargan warns that failure to sign a deal
beyond this week would force Deloitte & Touche to peddle the
network as a going concern.

Times Online, however, says it is "difficult to see who would buy
it."

"The likelihood is that the company would soon be liquidated and
its assets sold off separately," the paper says.


ITV DIGITAL: Administrator, League Given 7 Days to Solve Impasse
----------------------------------------------------------------

Under administration, ITV Digital has one more week to strike a
deal with the Football League or be liquidated, the High Court
ruled late Monday, reports Ananova.

Deloitte & Touche lawyer Michael Crystal QC had reportedly argued
before the court that it is in the best interest of creditors and
shareholders that the business be continued.

Accordingly, Mr. Crystal told the court there was a real prospect
of achieving a "restructuring of the cost base of the business"
with a view to obtaining long-term investment from shareholders,
Ananova says.

Football club chairmen are expected to consider the proposals of
the administrator at a meeting in Manchester on Thursday, the
report says.


JOHN LAING: Will Make Changes on Management Board  
-------------------------------------------------

In March 2002, U.K. construction group John Laing plc announced
that it would appoint a number of new independent non-executive
directors to its Board.

As part of that process, Laing announced that it has appointed
Tim Boatman to the Board as a non-executive director with effect
from April 12, 2002.

Tim Boatman FCA (60) retired from PricewaterhouseCoopers as an
Audit Partner in December 2001. He joined Cooper Brothers in 1965
becoming a partner in 1974.

During his career (Cooper Brothers, Coopers & Lybrand and
PricewaterhouseCoopers) he has held positions including Partner
in charge of the London Audit Division, Risk Management Partner
and Chairman of the African Panel.

In addition, Lord Howell who is a non-executive director and a
member of the Nomination, Remuneration and Audit committees will
retire from the Board with effect from 15 April 2002. The Board
of Laing would like to thank him for his services to the Group
over the last 5 years.

Enquiries:

Bill Forrester
John Laing plc                       
Chairman
Telephone no. 020 8906 5600

Ailsa Emerson
John Laing plc           
Group Director of H R
Telephone no. 020 8906 5667


JOHN LAING: Completes GBP40MM Sale of Property Division
-------------------------------------------------------

John Laing plc announced Monday the sale of the remainder of its
property development business incorporating Laing Property
Developments Limited, its subsidiaries and joint ventures,
together with three additional properties for GBP40.0 million in
cash to Kier Developments, a joint venture between Kier Group plc
and Bank of Scotland.  

This is subject to any minor adjustment arising from final
completion accounts. Of the total consideration, GBP4.4 million
is conditional on statutory consents and GBP1.9 million is
deferred and will be paid before the end of 2003.

The proceeds from these property divestments will be applied to
reduce group indebtedness.

On March 31, Laing Property had estimated net assets employed of
GBP30.3 million and had loans owing to the Laing Group of
companies of GBP25.0 million, which have been settled on
completion as part of the GBP40.0 million consideration.

During 2001 the business now being sold contributed profit before
interest and tax of GBP5.0 million towards the property
division's total profit of GBP9.7 million. The profit on
disposal, including the conditional and deferred consideration,
is estimated at GBP4.5 million after costs.

The assets sold to Kier Developments include Laing's 50% interest
in Absolute, a joint venture with Bank of Scotland, and a further
16 other properties at varying stages of development. Absolute
has a GBP265 million development programme in the M3/M4 corridor.

Since the intention to sell its property division was announced
in November 2001, the total consideration achieved by Laing
amounts to GBP66.3 million.

This includes realizations made by the division in the normal
course of its business. Prior Monday's sale, Laing had disposed
of 28 St James's Square and its headquarters in Mill Hill and
Portland Place in London as well as 10 other properties to
individual purchasers for an aggregate consideration of GBP26.3
million.

This brings the total profit before interest and tax on all
property realizations up to GBP15.5 million. Of this, GBP6.0
million fell in 2001, GBP5.1 million has been realized in 2002
and GBP4.4 million remains conditional.

Please address inquiries to:
John Laing plc             
Bill Forrester, Chairman                              
020 8906 5601

Adrian Ewer
John Laing plc             
Finance Director                         
020 8906 5601

Derrick Ardern
John Laing plc             
Director                              
020 8906 5305

Edward Orlebar/Faeth Finnemore                        
Finsbury Group             
020 7251 3801


PACE MICRO: Blames ITV Digital, NTL Woes in Latest Profit Warning
-----------------------------------------------------------------

The growing list of digital TV failures has affected Pace Micro
Technology, one of the major suppliers of set-top boxes that
facilitate this technology.

The company warned late Monday that it will record only
GBP500,000 in profits for the second half, instead of the GBP30
million earlier projected.  It could also show a loss of up to
GBP5 million before exceptional charges if the situation worsens.

The warning is the company's second profit caution in six weeks.  
The company said the fate of ITV Digital and the way the row with
the Football League was unsettling the market is one reason for
the warning.

Pace says it had also been hit by the financial crisis at NTL,
the U.K.'s largest cable company.  The company said it had been
unable to get credit insurance for its transactions with NTL.

With the grim financial outlook, Pace Finance Director John Dyson
told Times Online that the company would likely send home a
couple of employees based at the headquarters in Shipley, West
Yorkshire, to reduce costs.

In its warning, the company said only the ability of operators to
fund their plans for digital rollout and the level of demand from
consumers could improve the negative outlook.


TELEWEST COMMUNICATIONS: Shares Hit New Low on Investor Fears
-------------------------------------------------------------

Shares in U.K. cable company Telewest Communications plc have hit
an all-time record low falling 10.45% on Monday, hitting a new
low of 9.75p.

This development, according to BBC News Monday, was caused by
concern among investors that it may follow rival NTL in handing
control of the business to its creditors.

Telewest has debts of almost GBP5 billion. The company lost GBP2
billion last year after writing off the cost of an acquisition it
made two years ago, the report adds.

According to a representative from Telewest last month, the
company does not need to restructure its debt as long as it will
hit financial targets.

Telewest believes its provision of services, including
television, telephone and high-speed internet access, is
attracting more and more customers.


TELEWEST COMMUNICATIONS: Company Profile
----------------------------------------  

Name:    Telewest Communications plc
         Genesis Business Park
         Albert Drive, Woking
         Surrey GU21 5RW
         United Kingdom

Phone:   +44-1483-750-900
Fax:     +44-1483-750-901
email :  investor-relations@telewest.co.uk
Website: http://www.telewest.co.uk  

SIC:           Cable TV and Broadband Network Service Provider
Employees:     9280 (2001)
Net Loss:      US$2.5 billion (2001)
Total Assets:  US$10.7 million (Quarter end: Sept 31, 2001)
Total Liabilities:  US$8.5 million (Quarter end: Sept 31, 2001)

Type of Business: Telewest provides TV, entertainment, Internet
and telephone services to both homes and businesses across the
UK.

Trigger Event: Last year, the company lost GBP2 billion on
writing down an acquisition it made two years ago. The group's
debts are recorded at GBP5 billion. The company has not given
dividends since 1996.

Chairman: Anthony W. P. (Cob) Stenham
Group CEO and Director: Adam Singer
Group Finance Director: Charles J. Burdick

Financial Advisers: Schroder Salomon Smith Barney
                    Credit Suisse First Boston  
Stockbrokers:       Dresdner Kleinwort Wasserstein Securities Ltd
                    Merrill Lynch International  
Auditors:           KPMG  
LAW FIRMS:          Freshfields Bruckhaus Deringer
                    Weil, Gotshal & Manges  

No. of Shares in Issue:  2.9 billion

                                    ***********

       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.

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