/raid1/www/Hosts/bankrupt/TCREUR_Public/020422.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, April 22, 2002, Vol. 3, No. 78


                            Headlines


* F R A N C E *

AIR LIB: Hopes New No-frills Services Will Achieve Profits
MARINE COMMUNICATION: Group in Receivership Cuts 343 Jobs  

* G E R M A N Y *

DEUTSCHE TELEKOM: Rejects US$ 200MM Offer for Indonesian Stake
FAIRCHILD DORNIER: GE Unit Cancels US$ 1.4BB Plane Order
FAIRCHILD DORNIER: To Get US$ 100MM Order From China
KIRCHGRUPPE: Three Banks Willing to Forgive Loan for F1 Stake
KIRCHMEDIA: Creditor Banks to Release EUR 100MM Seed Money
MOBILCOM AG: France Telecom 40% Stake Mobilcom Offer This Week   

* G R E E C E *

OLYMPIC AIRWAYS: Greece Drops CSFB and Appoints New Advisers

* I T A L Y *

ALITALIA: Gov't May Provide EUR 893MM in Capital Injection

* L U X E M B O U R G *

GRAPES COMMUNICATIONS: Files Pre-Packaged Chapter 11 Plan in NY
GRAPES COMM.: Case Summary & 20 Largest Unsecured Creditors

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

ZURICH FINANCIAL: Announces Rolf Huppi Will Resign

* U N I T E D   K I N G D O M *

ARHTUR ANDERSEN: Local Affiliate Picks Deloitte as New Partner
ARTHUR ANDERSEN: Puts Offices up for Sale
BEDE PLC: European Patent Granted for Subsidiary
CLUBHAUS PLC: Notification of Major Interests in Shares
CONSIGNIA: Will Need GBP 35-40MM to Pay New Insurance Bill
COOKSON GROUP: Notification of Shareholders Interests
CORDIANT COMMUNICATIONS: Banking, Notice of Preliminary Results
CORUS GROUP: Analysts See Rosy 2003 as Prices Increase
CORUS GROUP: Disclosure of Interest in Shares
EIDOS PLC: Appoints Non-executive Chairman, Creative Director
ENERGIS PLC: Receives GBP 50MM Cash Injection From Banks
ENERGIS PLC: Carlyle, Apax Come Together for Deal
ITV DIGITAL: Looks for Buyers as Contract Row Remains Unresolved
ITV DIGITAL: Cuts 900 Jobs to Make Firm Attractive to Buyers
MCINTOSH OF DYCE: Receiver Announces More Redundancies
NTL INCORPORATED: Rejects New Rescue Bid From Liberty Media
PACE MICRO: To Trim Down Workforce Due to Dismal Turnover


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


AIR LIB: Hopes New No-frills Services Will Achieve Profits
----------------------------------------------------------

Threatened by competition from Air France, the TGV bullet train
and the approach of U.K. budget airline easyJet PLC on its turf,
Air Lib implements no-frills services on domestic routes hoping
to regain market footing, the Dow Jones Newswires reports.

Selling under the Air Lib Express brand, its real no-frills
service offer three flight attendants instead of five, no
newspapers and beverages and food passengers must pay for.

The company, which also operates full service long-haul flights
to French overseas territories, has yet to demonstrate it can
turn a profit on short-haul routes in France.

After introducing daily flights from Paris's Orly airport to
southern destinations through one-way tickets at EUR29 late last
month, Air Lib said the market response has been positive, with
aircraft between Paris and Marseilles 65% full in the second week
of the month.

Former French unit of now defunct Swissair hopes its new budget
services will increase cash flow and regain credibility from its
cautious banks and investors.

Chairman Jean-Chales Corbet, who previously spearheaded the
buyout of Air Liberte and AOM by financial house Holco, now leads
the embattled company as chairman.

Founded in July 2001 from the ashes of insolvent carriers Air
Liberte and AOM, Air Lib is struggling in the market in the midst
of growing competition.

Corbet aims to get 10% of the national rail company's 10 million
annual passengers, who rely on the high-speed train to travel
between Paris and Marseilles.

Air Lib expects to post an operating loss of around EUR60 million
this year and hopes to break even at operating level by 2003.

Corbet, in the longer run, aims for Air Lib to replace its fleet
of 18 McDonnell Douglas aircraft with 20 brand-new A319 jetliners
from Airbus in 2005.

The cash-strapped airline has yet to find funding to repaint its
aircraft with the new orange Air Lib Express livery.

In January, Air Lib received EUR30 million in emergency rescue
financing from the French government. The said loan will be
repaid as soon as Air Lib recovers EUR60 million from Swissair,
its former parent company.


MARINE COMMUNICATION: Group in Receivership Cuts 343 Jobs  
---------------------------------------------------------

A redundancy plan at Marine Communication will call for a loss of
up to 343 jobs to the works trade union sources told the works
council of the troubled French services company, the Les Echos
and FT Information reported Friday.

Marine Communication, formerly Marine Consulting, having a
workforce of 1,100 people, has been in receivership since
December last year.

Between 1998 and 1999, the group was able to integrate 800
employees of Alcatel SA, the French telecoms equipment group,
after it took over the Marine group's PABX switchboard
activities.


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


DEUTSCHE TELEKOM: Rejects US$ 200MM Offer for Indonesian Stake
--------------------------------------------------------------

Deutsche Telekom AG has refused the US$200 million offer of PT
Indonesian Satellite Corp. (Indosat) for its 25% stake in PT
Satelit Palapa Indonesia (Satelindo), preferring to use the stock
market, instead, in selling the interest.

Citing Satelindo executive vice president Jan Nilsson, Bloomberg
says the stake will be floated in the stock market soon.  Indosat
tabled its offer on April 15 to consolidate its holdings in the
company.  It currently controls 75% of Satelindo.

The premiere international call operator had hoped to secure its
foothold in the mobile-phone market with the acquisition of
Satelindo and its 1.7 million subscribers.  Rival PT
Telekomunikasi Selular has already cornered 3.3 million mobile-
phone users or more than half of the market.


FAIRCHILD DORNIER: GE Unit Cancels US$ 1.4BB Plane Order
--------------------------------------------------------

Gecas, the aircraft-leasing arm of General Electric, dealt a
serious blow on efforts to revive the stricken plane-maker
Fairchild Dornier when it cancelled orders for 50 birds last
week.

According to the Financial Times, the purchase contract involving
the firm's newest 728 model was worth US$1.4 billion.  It also
contained an option for another 100 planes.  

The withdrawal of the order brings to fore the reality that the
US-German firm is still not out of the woods yet.  Recently the
company received an aid from creditor banks worth US$90 million,
on top of the US$20 million released early this month.

Many had earlier predicted that the company will have an easy
time going through the insolvency process.  Their optimism was
primarily based on the order books of the company worth US$11.7
billion.  It contained 125 fixed orders and 164 options.

The report says Lufthansa Cityline, which has placed 60 fixed
orders and an additional 60 options for the 728, is still keeping
the contract.

Meanwhile, the possibility that Boeing will return to the
negotiating table and this time consummate a deal with the
company received a big boost last week after Boeing CEO Phil
Condit did not deny his company was mulling involvement in
Fairchild.

Early this year, Fairchild's two main shareholders Clayton
Dubilier & Rice and Allianz Capital Partners declined to put more
money into the company if no strategic partner could be found.

Fairchild Dornier is temporarily being run by Eberhard Braun who
has cut 500 jobs in the U.S., leaving 3,700 employees, the majority
at headquarters in Bavaria.


FAIRCHILD DORNIER: To Get US$ 100MM Order From China
----------------------------------------------------

China is reportedly placing an order worth US$100 million for
eight 328JET machines of Fairchild Dornier, buoying hopes that
the firm could recover soon from insolvency.

Financial Times Deutschland says a "verbal agreement is said
already to have been reached."  The move is surprising for China,
which previously imposed a ban on the import of regional
aircraft.


KIRCHGRUPPE: Three Banks Willing to Forgive Loan for F1 Stake
-------------------------------------------------------------

Bayerische Landesbank, JP Morgan and Lehman Brothers are willing
to forget about their loans to KirchGruppe in exchange for the
multi-billion proceeds from the sale of the group's stake in
Formula One, says Handelsblatt.

The banks, which hold the 58% stake as collateral for providing
the money to buy the interest in January last year, are expected
to sell it to the five carmakers in the motor racing series.  
These are BMW, DaimlerChrysler, Fiat, Ford and Renault, which
have set up a joint holding company, GPWC.

According to the German daily, the carmakers have confirmed that
they have been approached for the 30% stake in the SLEC, the
holding company of the Formula One racing circuit.  The banks had
also allegedly asked them to drop plans for setting up their own
motor racing series, which they had earlier threatened to do.  
But the carmakers have reportedly declined the offer unless they
are given 60% of the holding company.

The report says the banks expect to raise more from the sale than
direct payment from KirchGruppe for the US$1.6 billion they
shelled out last year.  Investment bank Bear Stearns says Kirch
owes the three creditors a combined total of EUR1.6 billion: EUR1
billion to BayernLB, EUR300 million to Lehman Brothers, and
EUR300 million to JP Morgan.

The Formula One stake is officially held by Kirch's investment
arm, Kirch-Beteiligungs GmbH & Co. KG.  Aside from the 58% stake
of Kirch, the three banks also hold as collateral the 17% SLEC
stake of EM.TV.


KIRCHMEDIA: Creditor Banks to Release EUR 100MM Seed Money
----------------------------------------------------------

Creditor banks of KirchMedia are now reportedly willing to inject
about EUR100 million to the gasping company, belying reports that
they have abandoned the company.

According to AFX News, the banks are willing to release the money
so that the company could remain as a going concern.  Save for
the objection of two banks, the money is now ready for delivery.
The report did not identify the two banks nor indicate the nature
of their objections.

The four major creditor banks of KirchMedia are DZ Bank, HVB Bank
AG, Bayerische Landesbank and Commerzbank AG.

Earlier, reports surfaced that some shareholders and creditors,
including the banks, had nixed efforts to rescue the company due
to the discovery of undisclosed liabilities in the firm's books.

But insiders say the banks are now going ahead with the salvage
efforts and the search is now on for new investors and a new set
of managers who will be given the task of restructuring
KirchMedia.


MOBILCOM AG: France Telecom 40% Stake Mobilcom Offer This Week   
--------------------------------------------------------------

France Telecom will make an offer for all Mobilcom shares by the
start of next week, a report according to the Teleboerse magazine
said, citing banking sources.

Gerhad Schmid, Mobilcom's Chief Executive, agreed three weeks ago
to let go of his 40% shareholdings in the troubled German mobile
network service provider to a group of banks.  

He further plans to step down and bow out of the German mobile
service group he founded in order to settle a long-running
disagreement with France Telecom, which has 29% stake in
Mobilcom.

Schmid had aimed to close the deal by the middle of April.

The transaction between the CEO and the banks is more complex,
the paper added, because France Telecom does not want to increase
its EUR7 billion debt, but wants to take control the struggling
German group.

The strategy, according to the magazine, will be the banks will
acquire Mobilcom shares and exchange them for stocks in France
Telecom's wireless unit Orange in 2005.


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


OLYMPIC AIRWAYS: Greece Drops CSFB and Appoints New Advisers
------------------------------------------------------------

Greece has appointed three local banks including: National Bank
of Greece, Commercial Bank of Greece, and Alpha Bank to advise on
the privatization of Olympic Airways, the Financial Times
reports.

The move follows one week after dropping Credit Suisse First
Boston on due to high fees.

The banks intends to establish a Greek investor group to acquire
51% of the loss-making state airline and inject US$100 million in
new capital.

The reports adds that Olympic has not published a balance sheet
since 1999. The group is estimated to incur US$ 85 million in
losses last year.

Last year, CSFB negotiated successive deals with two Greek groups
that had been short-listed as bidders. However, talks failed
because the Greek companies were unable to provide the required
bank guarantees.


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


ALITALIA: Gov't May Provide EUR 893MM in Capital Injection
----------------------------------------------------------

Francesco Mengozzi, chairman and managing director of Italian
airline Alitalia, together with Fausto Cereti met with Italy's EU
transport commissioner Loyola de Palacio in Brussels Wednesday
regarding the EUR893 million (US$786 million) latest capital
increase reserved for the Italian treasury.

According to the La Stampa and FT Information, the said
recapitalization is the last phase of the 1997 capital increase.

Italy's economics ministry, which holds a 53% stake in Alitalia,
said the government has approved plans for the additional
injection in a EUR1.4 billion funding approved in March.

The additional refinancing is currently under review by the
European Commission.


===================
L U X E M B O U R G
===================


GRAPES COMMUNICATIONS: Files Pre-Packaged Chapter 11 Plan in NY
---------------------------------------------------------------

Grapes Communications N.V./S.A. announces that, as part of a
restructuring program that was launched last October, on April
16, 2002, it filed a petition for confirmation of a pre-packaged
plan of reorganization under Chapter 11 of the U.S. Bankruptcy
Code in the Southern District Court of New York.

Following negotiations with its creditors, on October 31st, 2001,
advised by ING Barings, Grapes launched a tender offer to
purchase its EUR200,000,000 13.5% Senior Notes due 2010, with a
final offer to bondholders of 23.2% of the face value of bonds in
cash. The Company set a 95% minimum threshold of acceptance for
the tender offer. In parallel, the Company solicited votes to
approve the filing of a petition to confirm a pre-packaged plan
of reorganization pursuant to Chapter 11 of the U.S. Bankruptcy
Code in case the minimum threshold for the tender offer was not
reached.

More than 76% of bondholders by principal amount accepted the
tender offer but, since the minimum threshold was not achieved,
the Company elected to pursue the alternative path of filing a
petition for confirmation of a pre-packaged Chapter 11 plan of
reorganization, for which the approval thresholds were
significantly exceeded.

The U.S. Court has scheduled a confirmation hearing for May 22,
2002.

Massimo Trippetti, the Company's Chief Executive Officer, said,
"The success of the solicitation of votes with respect to the
pre-packaged plan of reorganization demonstrates the strong
backing in support of the plan. I am therefore confident that the
plan will now be confirmed by the New York Court. We believe that
this event represents a major step for the Company since a
successful confirmation of the plan will substantially reduce the
Company's debt. We believe that the restructuring of our balance
sheet combined with improvement of our operational performance
and the additional committed financing required for confirmation
of the reorganization plan will allow Grapes to achieve a fully-
funded status".

Grapes Network Services, Numero Blu and Grapes Hellas, the
company's subsidiaries in Italy and in Greece are not involved in
the Chapter 11 procedure, and will continue normally their day-
to-day activities with no impact on their customers and
suppliers. The operating subsidiaries therefore will keep running
their business as usual and the management is fully committed to
their development and success.

For more information, please refer to the document collection at
http://www.grapesnet.com/English/investor.htm


GRAPES COMM.: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Grapes Communications N.V./S.A.
        202 Val des Bon Malades Ground Floor
        Number 3, L-2121
        Luxembourg
        aka Grapes Communications NV
        aka Mediterranean Telecommunications BV
        aka Mediterranean Telecommunications N.V.
        aka Medtel

Bankruptcy Case No.: 02-11801

Type of Business: The Debtor is a holding company with
                  subsidiaries that are alternative providers
                  of telecommunication services, primarily
                  targeting small- and mediumsized businesses
                  in Italy and Greece. The Debtor began
                  operations in January 1999 and, through
                  its subsidiaries, as of December 31, 2001,
                  provided basic voice and data services to
                  approximately 16,000 customers. For example,
                  Grapes Network Services S.p.A., one of the
                  Subsidiaries, provides voice, data and
                  Internet telecommunications services
                  primarily to small- and medium-sized
                  businesses and small office customers located
                  in Northern Italy. Grapes Hellas, S.A.,
                  another wholly owned subsidiary of the
                  Debtor, provides telecommunication services
                  to small- and medium-sized businesses in
                  Greece. The Subsidiaries are not filing for
                  protection under chapter 11 of the U.S.
                  Bankruptcy Code.

Chapter 11 Petition Date: April 16, 2002

Court: Southern District of New York (Manhattan)

Judge: Cornelius Blackshear

Debtor's Counsel: James L. Garrity, Jr., Esq.
                  Shearman & Sterling
                  599 Lexington Avenue
                  New York, NY 10022
                  (212) 848-4879
                  Fax : (646) 848-4879

Total Assets: EUR251,097,012

Total Debts: EUR308,102,397

Debtor's 20 Largest Unsecured Creditors:

Entity                     Nature of Claim     Claim Amount(EUR)
------                     ---------------     -----------------
JP Morgan Chase Bank, as       Notes              200,000,000
successor in interest to
The Chase Manhattan Bank
of London, trustee for
holders of 13.5% Notes
due 2010
Kevin Rainbird
Trinity Tower
9 Thomas More Street
London, United Kingdom E1W
1YT
Tel: 0044 20 7777 5603
Fax: 0044 20 7777 5410

European Dynamics S.A.      Litigation              6,700,000
209, Kifissias Avenue
& Arkadiou Street,
15124 Maroussi, Athens,
Greece
Tel: 00 3010 8094500
Fax: 00 3010 8094500

KPN Eurovoice B.V.          Telecom Services        2,812,353
P.O. Box 30000
2500 GA The Hague
The Netherlands
Tel: 0031 703437570
Fax: 0031 703432040

Newcourt Financial          Leasing Services          548,125
Zadelstede 1-10
3431 JZ Nieuwegein
The Netherlands
Tel: 0031 306097745
Fax: 0031 306097746

Ernst & Young UK            Accounting and             519,724
Becket House                 Consulting Fees
1 Lambeth Palace Road
London SE1 7 EU
United Kingdom
Tel: 0044 2079512000
Fax: 0044 2079511345

Reconta Ernst & Young       Accounting and             331,100
Via Torino, 68               Consulting Fees
20123 Milan, Italy
Tel: 02722121
Fax: 02 72212037

Konstantinos Velentzas      Litigation                 283,268
Kodrou Street 9
Philithei Athens,
Greece

Xantic B.V.                 Telecom Services           238,796
(ex Station 12)

Arthur Andersen S.p.A.      Consulting Fees            183,084

Cuatrecasas                 Legal Fees                 174,711

Atlantic Exchange Tower     Telecom Services           174,550

Cap Gemini E&Y Italy        Consulting Fees            159,986

Telia UK Ltd                Telecom Services           131,606

Arthur Andersen MBA S.r.l.  Consulting Fees            100,090

BT / Ignite Solutions       Telecom Services            99,260

Squire Sanders              Legal Fees                  83,565

De Bandt Van Hecke          Legal Fees                  66,055

Reteq Group LTD             Telecom Consulting Fee      63,796

JP Morgan                   Consulting Fee              46,386

Ernst & Young Luxembourg   Accounting and
"Kirchberg"                 Consulting Fees             42,022


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


ZURICH FINANCIAL: Announces Rolf Huppi Will Resign
--------------------------------------------------

Zurich Financial Services, according to a company statement
released Friday, announced that Rolf Huppi intends to resign as
Chairman and Member of the Board of Directors following the
forthcoming Annual General Meeting and upon the appointment of a
new Chief Executive Officer.

As earlier announcement said that Zurich Financial intends to
appoint a new CEO by mid-year 2002, Rolf Huppi, following the
appointment of the new CEO, will step down as Chairman and will
resign from the Board of Directors. Adding that his term of
office does not expire until the Annual General Meeting in 2003.

The Board of Directors intends to appoint its current Vice
Chairman Lodewijk van Wachem, subject to his re-election at the
forthcoming Annual General Meeting as its new Chairman.

Huppi was able to witness the company's asset management unit
tumble and investors turn away from the investment group.

After selling asset manager Zurich Scudder to Deutsche Bank and
spinning off Converium ,formerly Zurich Re, the investment
management firm now aims to get back on track.

The Zurich Financial Services Group -- http://www.zurich.com--  
provides its customers solutions in the areas of financial
protection (non-life insurance and structured solutions) and
asset gathering (life insurance and asset management).

The Group's key markets include North America, UK and Continental
Europe. Founded in 1872, Zurich is headquartered in Zurich,
Switzerland. It has offices in more than 60 countries and employs
approximately 70,000 people.

For further information please contact:
Zurich Financial Services, Investor Relations, Pierre Wauthier
8022 Zurich, Switzerland
Phone +41 (0)1 625 22 99, Fax +41 (0)1 625 36 18


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


ARHTUR ANDERSEN: Local Affiliate Picks Deloitte as New Partner
--------------------------------------------------------------

The defection of Arthur Andersen's foreign affiliates to rival
firms continued last week, with the Belgian office announcing
Wednesday that it had chosen to merge with Deloitte & Touche.

Dow Jones Newswires says the merged entity will be headed by
Deloitte CEO Jos Beddegenoodts, while Andersen's Managing Partner
in Belgium Ludo De Keulenear will be second in command.

No layoffs will be implemented as a result of the merger. All the
partners and employees of Andersen Belgium will join the new
company, says the report.

Over in Britain, the prospects for Andersen employees are not as
positive as their Belgian counterparts.  The company announced
last week plans to shed 1,500 employees.  Some 60 to 70 of the
firm's 383 partners are also expected to leave the firm, a
spokesman for the British unit told the newswire.

Meanwhile, Rupert Murdoch's News Corp. and Fox Entertainment
Group Inc. have ditched the U.K. practice for another auditor.  The
two are the latest to leave the firm.  At least four other major
clients had done the same in recent weeks.


ARTHUR ANDERSEN: Puts Offices up for Sale
-----------------------------------------

THE UK arm of Andersen, auditor of bankrupt energy trader Enron,
has put more than 10% of its London office space on the market,
This is London said Friday.

According to the Troubled Company Reporter Europe, Stagecoach,
Mayflower, Amvescap are among Andersen's U.K. clients who have
solicited other audit company's services in place of Andersen's.

The move follows after reports say the company plans to cut 30%
of its workforce, affecting 1,500 employees.

According to Property Week magazine, Andersen has instructed ATIS
Real Weatheralls, property agent, to market the properties around
its headquarters at 180 Strand.

Andersen has leases on two properties, 38,000 square feet in Bush
House and 12,000 square feet in nearby Arundel Street.


BEDE PLC: European Patent Granted for Subsidiary
------------------------------------------------

Bede Scientific Instruments Limited, a subsidiary of Bede plc --
www.bede.co.uk --, has been granted a patent (European Patent
Number 0928496) by the European Patent and Trademark Office for
its revolutionary Microsource(R) X-ray generator, a key element
of the Group's core technology.

The patent was granted on April 3, 2002 and follows the granting
of a US patent for the Microsource(R) on 28 August 2001.

The patent describes the technology used in Bede's Microsource(R)
X-Ray Generator, a uniquely compact, high brightness X-ray source
that is a key component of Bede's X-Ray tools for the
semiconductor and other industries, as well as being supplied to
other manufacturers for incorporation into systems for life
science applications.

According to Dr Neil Loxley, Bede's chief executive, this is the
second patent to be awarded to Bede for the Microsource(R) in
less than a year.

He added that Additional patents in the US and other countries
are also actively being progressed.

The Company also announced Thursday that its Intellectual
Property has been strengthened by the granting of European
Community Trademarks for Bede(R) and Microsource(R).

Bede plc designs and manufactures non-destructive X-ray metrology
tools. Primarily serving the semiconductor market, the company is
diversifying into other market sectors including life sciences.

Contact Information:

Neil Loxley, Chief Executive:
David Hall, Finance Director:         Tel No: +44 (0)191 332 4700
Tim Anderson, Buchanan Communications Tel No: +44 (0)20 7466 5000
Lisa Baderoon, Buchanan Communications  (Mobile)    07721 413 496


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

Clubhaus plc, the golf course and leisure group, declares that
Electra Quoted Management Limited, on behalf of its affiliates'
share capital, holds interests over 4,976,577 ordinary shares in
Clubhaus.

The shares involved in this announcement totals an equivalent of
4.82% in outstanding shares issued by Clubhaus.  

The interests held by the affiliates of Elektra are summarized as
follows:

Electra Active Management plc       2,500,000
Electra Quoted Partners 1995        2,476,577

For more information about this notification, contact Rupert
Horner at telephone no. 01732 835900.


CONSIGNIA: Will Need GBP 35-40MM to Pay New Insurance Bill
----------------------------------------------------------

The redundancies at Consignia may have to be speeded up following
the decision of the Chancellor to raise national insurance
contribution for workers to 12.8%

The Times says the increase will force the post office to look
for additional GBP35 million to GBP40 million with its present
200,000 staff.  Earlier, the company said it will shed a total of
30,000 workers to stay in business.  Some 15,000 are expected to
go this year.

The company currently maintains an annual payroll of GBP5
billion.  Wages account for more than 70% of its annual costs and
the company is estimated to be losing GBP1.5 million each day.  
The company plans to save GBP1.2 billion as a result of the lay-
off.


COOKSON GROUP: Notification of Shareholders Interests
-----------------------------------------------------

Metals and mining company Cookson group announced Thursday that
according to Fidelity International Limited, on behalf of its
affiliates' share capital, Fidelity holds non-beneficial
interests over 80,329,335 ordinary 50p shares in Cookson.

The shares total an equivalent of  11.04% in the outstanding   
shares issued by Cookson.  

Holdings by Fidelity International Limited's management companies  
involving: Fidelity Investment Services Ltd., Fidelity Pension
Management and Fidelity International Limited are summarized as
follows:

REGISTERED NAME                        NO. OF SHARES
Chase Nominees Ltd.                      20,302,439
Chase Manhattan Bank London ltd.         9,473,368
RBS Trust Bank                           1,199,000
Nortrust nominees Ltd.                   200,000
BT Globenet Nominees Ltd.                111,000
Citibank                                 196,000
Chase Nominees Ltd.                      3,709,400
Bank of New York London                  841,500
Northern Trust                           1,123,000
HSBC                                     349,800
Bankers Trust                            210,300
RBS Trust Bank                           2,353,300
Citibank                                 151,000
Chase nominees ltd                       8,252,809
Hsbc Client Holdings Nominee(uk)        26,242,619
Limited
Chase Manhattan Bank London              27,900
Deutsche bank                            1,027,700
Bank of New York London                  2,490,200
Northern Trust                           2,068,000

For further details regarding this notification, contact Alan
Wallwork of Cookson Group PLC at telephone no. 020 7766 4537.


CORDIANT COMMUNICATIONS: Banking, Notice of Preliminary Results
---------------------------------------------------------------

Troubled advertising group Cordiant Communications plc said
Friday it signed full documentation of the agreements with its
Banks and the holders of its Guaranteed Senior Notes, which
govern the Group's principal borrowing facilities.

Cordiant will be announcing Preliminary Results for the year
ended December 31, 2001 today, April 22, 2002.

A presentation to analysts will be held at 11:30 am (BST) at
College Hill Associates, 78 Cannon Street, London, EC4.  

There will also be a telephone conference call with management at
3:00 pm (1000 hours EST), details of which will be made available
later today.


CORDIANT COMMUNICATIONS: Notice on Additional Listing of Shares
---------------------------------------------------------------

Cordiant Communications Gorup plc applied at the office of the
Financial Services Authority for 3,984,987 ordinary shares of 50p
each to be admitted to the Official List and to the London Stock
Exchange for admission to trading.

Admission of the new shares was granted on April 19, 2002.
Admission and trading will begin Monday.

The shares are being issued by way of deferred consideration due
pursuant to the terms of the acquisition of Gallagher & Kelly
Public Relations Limited announced on April 3, 2001.


CORUS GROUP: Analysts See Rosy 2003 as Prices Increase
------------------------------------------------------

With the prospect of steel prices going up next year, analysts
are increasingly upbeat with their forecasts for Corus Group, the
debt-laden British steel maker.

According to the Financial Times, analysts are predicting the
company to record next year a big jump in pre-tax profits or
about GBP500 million to GBP750 million.  

This optimism has rubbed onto stock market investors who have
allowed the company to outperform the rest of the U.K. stock market
by 100% since last autumn.  This has paved the way for the
company's return to the FTSE 100 index, where it had been listed
until 18 months ago.

Analysts are also pleased by the decision to sell the aluminum
unit.  The disposal is expected to raise GBP800 million, which
will help reduce the firm's debts.

"The company has had a difficult time but seems to be doing the
right things," observes Goldman Sachs analyst Duncan McLean in an
interview with the Financial Times.

Industry observers, meanwhile, posit that the best strategy for
the company is to bring production to continental Europe.  CEO
Tony Pedder seems to be thinking of this as well, the report
says.

The paper says of the 18 million tonnes the company produced last
year, 12 million came from the U.K., of which roughly half was
exported.  The other 6 million tonnes came principally from a
large steel plant run by Corus in Ijmuiden in the Netherlands -
and which mainly serves customers in continental Europe.

With such a large proportion of its customers outside Britain, it
would probably make sense for the company to build up more
production capacity outside the U.K. in the longer term, the paper
says.

Since the merger of British Steel and Hoogovens that gave birth
to Corus in 1999, the company has struggled to turn in a profit.  
Already, the steel-maker has shed 10,000 workers in the past two
years.

The company plunged into heavy losses due to dwindling demand for
steel from British manufacturers, combined with the impact of the
strength of the pound against the euro.

As a result, the whole of the company made a GBP1.1 billion pre-
tax loss in 2000. Analysts say it will barely reach breakeven
this year.   


CORUS GROUP: Disclosure of Interest in Shares
---------------------------------------------

Corus Group plc, the London-based steel manufacturer, announced
Thursday that Legal & General Investment Management, has
interests in 94,574,732 ordinary shares of 50p each, representing
3.02% of Corus Group plc's issued capital.


EIDOS PLC: Appoints Non-executive Chairman, Creative Director
-------------------------------------------------------------

Eidos plc, the video games developer behind Tomb Raider,
announced Thursday the appointment of John van Kuffeler as Non-
Executive Chairman, with immediate effect.

Current Executive Chairman, Ian Livingstone, will remain on the
board and assume the role of Creative Director and continue with
his full time executive responsibilities.

Mike McGarvey, Eidos' chief executive said that Livingstone's
appointment as Creative Director will allow him assist in
securing new game franchises for Eidos.


ENERGIS PLC: Receives GBP 50MM Cash Injection From Banks
--------------------------------------------------------

Troubled telecoms group Energis Plc received last week GBP50
million in additional loan from creditor banks as it prepares to
accept bids for its U.K. arm, says the Independent.

The amount is part of the company's GBP725 million credit
facility, which was earlier thought to have been frozen following
the company's announcement in January that it was about to breach
its banking covenants.

The release of the money confirmed rumors last week that the
banks will have lent between GBP600 million and GBP700 million of
the credit line by the end of May.

The company is expected to receive bids for its main UK business
and the other units in continental Europe in the coming weeks.  
It is expected that should a sale fail to materialize, the
company will opt for the second alternative, a debt-for-equity
swap.

Meanwhile, the report says British Telecom has allegedly taken
interest in the German unit Energis Ision.  

This subsidiary focuses on Web hosting and Internet services and
has an SDH fiber optic network that spans some 5,677 km in length
and a hosting space of around 3,568 square meters across Germany,
and 32 POPs. It employed 850 staff as of August 2001.

In the six months ending June 30, 2001, Energis Ision had revenue
of EUR57.7 million of which 59% came from Web hosting. The
overall gross margin of the operations was 51.2%. The reported
EBITDA loss for the period was EUR10.5 million.


ENERGIS PLC: Carlyle, Apax Come Together for Deal
-------------------------------------------------

Carlyle Group and Apax Partners have pooled their resources to
assemble a superior bid for Energis Plc and hopefully avoid
meeting head to head and pushing further the price of the firm.

According to the Financial Times, the two private equity groups,
among those earlier hinted to be in the shortlist of potential
buyers, have formed a management team headed by Duncan Lewis.

If successful, the two firms will both own an equal stake in
Energis.  Neither of the two has released an official statement
about the cooperation, the report says.

There are at least four others seen as bidding for the stricken
telecom network operator.  They include Permira, Credit Suisse
First Boston Private Equity, Spectrum Equity Partners, and
Blackstone Group, the paper says.  This list will be cut to two
preferred bidders, which will then go head-to-head with their
bids.

Reports indicate that indicative offers for the U.K. business of
Energis have ranged between GBP600 million and GBP1 billion.


ITV DIGITAL: Looks for Buyers as Contract Row Remains Unresolved
----------------------------------------------------------------

ITV Digital has reportedly begun looking for buyers after hopes
of settling its rift with the Football League faded last week.  
This move sets off the march to liquidation, the Financial Times
says.

The paper says there are only a few bidders for the company,
largely venture capitalists.  These investors, however, may yet
balk at the ongoing costs and nix their acquisition plans.  Trade
buyers are similarly limited.  British Sky Broadcasting has
denied interest in the assets, the report says.

On Monday last week, the High Court in London granted the company
a week's extension to settle its row with the League.  On
Thursday, however, the club chairmen demanded direct negotiation
with Carlton and Granada.

The co-owners of ITV Digital have insisted, though, that
discussions should be made with administrator Deloitte & Touche.  

The company could end up being liquidated if it fails to find a
buyer soon.


ITV DIGITAL: Cuts 900 Jobs to Make Firm Attractive to Buyers
------------------------------------------------------------

Some 900 jobs will go at ITV Digital as its administrators
prepare the company for a sale early next week.  The move is also
in line with Deloitte & Touche's plan to cut by half the daily
operating cost of nearly GBP1 million.

The Financial Times says the group is losing 3,000 customers a
day due to the public dispute between the company and the
Football League.  The job cut is seen as a necessary step to
conserve the company's dwindling funds as well wrap the company
is much more presentable package prior to its auction.

The paper says the company has received some six to seven
expressions of interest.  Formal talks with buyers could begin
Monday.  Accordingly, most of the buyers are interested in the
license to operate digital terrestrial television in the U.K.

There are speculations that buyers could be deterred by the need
for considerable investment following any restructuring.  In
addition, the rate at which the company is losing customers --
about 20,000 people a week -- makes it an unattractive investment
target.

According to the paper, at the current rate, in little over a
year the business could lose the 1.26 million customers that it
took four years to sign.

Meanwhile, there is still no progress in the negotiations with
the Football League.  Keith Harris, the League's chairman, held
his first face-to-face meeting with ITV Digital's shareholders -
Charles Allen, Granada chairman, and Gerry Murphy, Carlton's
chief executive, on Friday but nothing came out of this meeting.

The latest job cuts are the second round of layoffs. About 600
people were sacked before the administrative process, saving
Carlton and Granada about GBP100 million.  The two companies have
collectively lost nearly GBP1 billion on ITV Digital so far, the
report says.


MCINTOSH OF DYCE: Receiver Announces More Redundancies
------------------------------------------------------

A further 47 job redundancies were announced Friday quality
chilled-foods group McIntosh Of Dyce, the Business a.m. said
Friday.

As talks to secure the continued business operations resume,
Receiver Blair Nimmo, of KPMG Corporate Recovery, said the job
losses at McIntosh's sister company Wallace Bakeries of Dundee is
necessary to protect the business against a seasonal downturn in
the bakery goods market.

In February, the report adds, McIntosh fell into receivership
with debts of GBP8 million after Canadian parent company Sepp's
Gourmet Foods withdrew financial backing.

Among the top entities understood to be negotiating a deal for
McIntosh's assets are Bell Bakers (Lanarkshire), Halls of
Broxburn and a management team.

McIntosh Of Dyce now has a total of about 180 workers.

Contact Information:
Roy Bloxham
Victoria Street
Dyce, Aberdeen
Grampian
AB21 7RA, UK
Phone: 01224 771414
Fax: 01224 723716


NTL INCORPORATED: Rejects New Rescue Bid From Liberty Media
-----------------------------------------------------------

NTL, the cable company which recently hoped on a bondholder-
backed rescue plan via a US$10.6 billion debt-for-equity swap,
has rejected a new bid from U.S. media mogul John Malone, the
Financial Times reports.

Malone, through Liberty Media is offering to buy a sizable stake
of NTL's bonds. The paper adds that he is still trying to win
banks over by promising US$500 million cash for 100% of Cablecom,
NTL's heavily indebted Swiss subsidiary.

The report said that according to insiders, Liberty is also
seeking NTL's consent to buy enough bonds to give it 30% of NTL's
core U.K. and Ireland unit in any debt for equity swap.

At least one bank on Friday welcomed Liberty's interest, the
paper's sources said.

Liberty, prevented from directly communicating with NTL's banks
or bondholders by an agreement it has with NTL until July, has
made his renewed offer in writing to NTL's chief executive
Barclay Knapp.

While NTL bondholders have largely written off Cablecom, the
Swiss unit is causing a crisis to many NTL banks as the
subsidiary is threatening to unravel the whole rescue plan, the
paper said.

Cablecom has already breached convenants on its US$2 billion of
loans. It could have to file for insolvency by the end of the
month unless it is granted new short-term bank waivers.

To survive in the longer term, bondholders and debt analysts say
that Cablecom must receive new cash or see some of its loans
written off.

Cablecom's banks, including JP Morgan Chase, Morgan Stanley, Bank
of America and dozens of others, are facing a total write-off of
at least "several hundred millions of dollars".

Bondholders refuse on a recapitalization but the banks are
resisting any write-off. They want new funding for Cablecom as a
condition of agreeing the overall debt restructuring plan at NTL.

The Swiss group agrues they need cash which may possibly come
from either bondholders or the US$300 million proceeds from the
sale of NTL's Australian network.

Talks over the issue continue between NTL management and its
banks. With the approval of all its main creditors, any delay
could undermine NTL's plan to file for Chapter 11 by the end of
April.


PACE MICRO: To Trim Down Workforce Due to Dismal Turnover
---------------------------------------------------------

Losing digital set-top box maker Pace Micro plans to shed a still
uncertain number of employees as a result of falling turnovers
brought about by the failure of NTL and ITV Digital.

CEO Malcolm Miller told The Guardian last week that his company
will record a "small" loss in the last six months of its
financial year, instead of the small profit earlier forecast.

The company employs 950 employees, three quarters of them in the
United Kingdom, the paper says.  

"We will have to lose some jobs. We don't know how many.  We hope
to have a better idea in six weeks' time at the end of our
financial year," Mr. Miller told The Guardian.

Mr. Miller says the drop in profits has been caused by customers
switching to cheaper boxes.  Because of this, the company has had
to cut price charged to some operators.  It didn't help either
that ITV Digital filed for administration as sales to the
troubled operator have grounded to a halt since then.

The company counts Telewest and NTL Inc. as one of its largest
customer in the United Kingdom.  NTL recently inked a deal with
creditors to restructure its debts through a debt-for-equity
swap.  It is expected that the restructuring process will affect
Pace Micro in the short term.  

Meanwhile, more trouble awaits the company should Telewest go
bust.  The second largest cable operator in the U.K. is also
saddled with huge debts and is seen as following NTL's lead
pretty soon.

                                  ************

      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
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

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or balance thereof are US$25 each. For subscription information,
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