/raid1/www/Hosts/bankrupt/TCREUR_Public/020510.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, May 10, 2002, Vol. 3, No. 92


                            Headlines

                           *********

* G E R M A N Y *

TEAMWORK INFORMATION: Subscription Period for New Stocks

CARGOLIFTER AG: State Won't Extend Aid Unless Footing Is Sure
COMMERZBANK AG: Raises Bad Loan Provision as Losses in Q1 Mount
DEUTSCHE TELECOM: Won't Cancel Bond Issue Despite Market Gloom
DEUTSCHE TELEKOM: EU Regulators Rap Firm for Stunting Competition
EKABEL HESSEN: Worries Over Capital Structure Cause Ratings Cut
GONTARD & METALLBANK: Survival Depends on Loan Portfolio Sale
KINOWELT MEDIEN: Munich Court Begins Insolvency Proceedings
KIRCHPAYTV GMBH: Bankruptcy Boosts Survival Chances of Premiere
KIRCHPAYTV GMBH: BSkyB Doesn't Expect 'Put Option' to Be Honored
RHI AG: Manufacturing Firm Issues 80% of Convertible Bonds
PHILIPP HOLZMANN: Bilfinger + Berger Confirms Interest in Units

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

LANDIS NV: Erstwhile Dutch Telecom Darling Declares Bankruptcy

* N O R W A Y *

KVAERNER ASA: Strengthens Oil And Gas Activities in Asia, U.S.

* P O L A N D *

TELEKOMUNIKACJA POLSKA: Urges Banks to Relax Loan Conditions

* S P A I N *

TERRA LYCOS: Reveals First Quarter 2002 Financial Results

* S W E D E N *

LM ERICSSON: Compression Technology Boosts 3G Network Capacity

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

ABB LTD: Signs Letter of Intent With Phillips Petroleum
ARTHUR ANDERSEN: KPMG Signs Letter to Buy Andersen's Other Units
SULZER MEDICA: U.S. Court Confirms Fairness of Settlement

* U N I T E D   K I N G D O M *

BRITISH AIRWAYS: Premature Sale of Go Costs Carrier GBP300 MM
BRITISH TELECOM: To Sell Alarms Unit for at Least GBP 50MM
CLUBHAUS PLC: Announces Results of EGM and Directorate Changes
CONSIGNIA: Industry Minister Admits Failed Talks With TPG
CORDIANT COMMUNICATIONS: Changes Management Board
NTL INCORPORATED: Files Bankruptcy Petition in New York
NTL INCORPORATED: Case Summary & Largest Unsecured Creditors
SCOOT.COM PLC: Denies Rumor of Possible Sale to British Telecom
SCOOT.COM PLC: Company Profile  (Updated as of 04/30/02)


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

CARGOLIFTER AG: State Won't Extend Aid Unless Footing Is Sure
-------------------------------------------------------------

German state of Brandenburg gave Cargolifter AG more
disappointing news this week, announcing that it would not extend
any aid if its long-term finances are not guaranteed.

According to Die Welt/FT Information, state Economic Minister
Wolfgang Furniss made the announcement Monday, who also pointed
out that the temporary cashflow problem of the airship maker must
first be solved prior to any intervention.

The company is still struggling to find a long-term strategic
partner.  Recently, the firm inked a preliminary deal with
Boeing, but financial aid was not guaranteed by the American
aircraft maker.

Cargolifter estimates its cash requirement to be EUR720 million.
This amount, however, is only for the development of its flagship
product, the CL 160 airship.  The company still lacks EUR400
million of this sum, says the report.


COMMERZBANK AG: Raises Bad Loan Provision as Losses in Q1 Mount
---------------------------------------------------------------

The first quarter pre-tax profits of Commerzbank AG slightly
edged the forecast of Chairman Klaus Peter Muller last month, but
nevertheless a drop by 53% from a year ago, says the Financial
Times.

Earnings for the quarter reached EUR153 million, slightly ahead
of the EUR150 million projected by Mr. Muller.  The figure,
however, pales in comparison to the EUR323 million recorded
during the same period last year.

The investment banking operations, the bank's main profitable
business, took a net loss of EUR18 million due to a sharp drop in
trading profits.  The asset management unit also absorbed a
staggering loss of EUR38 million, the paper says.  The firm had
recently announced the restructuring of this unit.

Bank executives told the paper that the sale of asset management
operations, including Montgomery in the US and Jupiter in the UK,
would show progress in the second quarter.

The bank, meanwhile, raised its loan loss provision by 66% to
EUR254 million due to the wave of insolvencies among many small-
and medium-sized companies, the bank's core market in Germany,
says the paper.

The Financial Times says risk provisions could exceed EUR1
billion this year, as the rate of insolvencies among German
companies is not expected to let up even if the economy recovers
soon.


DEUTSCHE TELECOM: Won't Cancel Bond Issue Despite Market Gloom
--------------------------------------------------------------

Deutsche Telecom is not holding back its bond issue despite the
dire conditions in the telecom sector and gloomy projections for
the entire year, Reuters says citing people close to the German
telecom incumbent.

"The bond is set to come in May, it will not at all be postponed.
The market is nervous, but the investors are watching with
interest," one banker close to the transaction told Reuters.

As to the date of the issue, another source says it will depend
on the perceived appetite of the market on a particular day.

"We're not married to [the date]. If we have a dire week then
we're not going to push it on the market, we'll just wait for the
first day or two days when we feel the market is good. We will
not do a trade that the market would not support," the source
told Reuters.

"They need to refinance [existing debt]. They wouldn't spend both
the CFO and the Treasurer's time in the U.S. if they had that
thought [of postponement]," the source said.

The company commenced its U.S. presentations Tuesday and will end
today.  The deal, lead managed by Deutsche Bank, JP Morgan and
Schroder Salomon Smith Barney, will total between EUR5 billion
and EUR8 billion and is expected to be priced early in the week
commencing May 13.

The issue will be a mix of dollar-denominated and a euro-
denominated tranche.  Details of price guidance or the size of
the tranches have yet to be released, but bankers said the bigger
slice of the deal is likely to be euro-denominated, says Reuters.

"The size of the tranches has not been decided. If the dollar
market is in tip-top shape and euro was really bad, we would do a
substantial portion of it in dollars," a source told Reuters.


DEUTSCHE TELEKOM: EU Regulators Rap Firm for Stunting Competition
-----------------------------------------------------------------

Deutsche Telekom has two months to unbundle and give competitors
access to its local loop or face sanctions, a "statement of
objection" from the EU Competition Commission ordered recently.

According to Reuters, the Commission accused the German telecom
incumbent of charging unfair prices to rivals for access to its
local lines into homes and businesses.

"The current assessment leaves no doubt that local loop
unbundling is not developing fast enough," the Commission said in
the statement.

Although Germany accounts for 700,000 of the 800,000 lines that
have so far been unbundled in Europe, the competition regulator
says more efforts are still needed to improve competition in the
country.  And Deutsche Telekom, being the telecom incumbent, must
do its share.

The Commission says Deutsche Telekom's policy discourages new
companies from entering the market, since there was an
insufficient spread between the prices it charged for retail
subscriptions and for wholesale local loop access.

"It is the Commission's view that DT could have avoided a margin
squeeze since 1998, either by reducing the wholesale access fees
or by increasing the retail subscription fees or by combining the
two," the statement said.

This action follows recent censures made by the regulator against
the telecom incumbents in France and the Netherlands.  The
Commission says Germany should not feel being singled out.

Relationships between Berlin and Brussels remain strain, as the
German government believes that EU regulators have a bias against
German industry.

Berlin, however, says it will not make a stand on this particular
issue, as it only concerns Deutsche Telekom.

"This action is not addressed to the government but to Deutsche
Telekom... therefore we see no reason to take a position. We have
to see how the process ends," Economy Ministry spokeswoman Regina
Wierig told Reuters.

The Commission says it acted upon complaints from Deutsche
Telekom's rivals Mannesmann and Arcor, both subsidiaries of
British telecoms giant Vodafone, and other local and regional
carriers in Germany.


EKABEL HESSEN: Worries Over Capital Structure Cause Ratings Cut
---------------------------------------------------------------

IESY Hessen GmbH's (eKabel), a broadband communication network in
Germany suffered a downgrade from Moody's Investors Service
Tuesday, reflecting growing apprehensions regarding its inability
to grow into its capital structure.

The new ratings are: senior implied rating to Caa2 from B2,
senior unsecured issuer rating to Ca from Caa1, senior unsecured
bond ratings to Ca from Caa1 and guaranteed senior secured credit
facility to B3 from B1.

"(IESY) may be unable to resolve the anticipated bank covenant
issues that are likely to result (although potentially not until
early 2003) from the company's reduced growth prospects over the
next several years," Moody's said.

Concerns are also mounting over rumors that some banks would
allow for covenant amendments despite the fact that IESY is
suffering from weakened credit profile.  However, in this regard,
Moody's said that "any covenant amendments are unlikely to allow
for the company to upstream funds to service the senior unsecured
notes at the holding company level making a restructuring of the
company's balance sheet highly likely."

Moody's expects "recovery prospects for senior unsecured
bondholders [to] be poor given the company's considerable debt
burden; on-going cash needs; the potentially reduced universe of
buyers for German cable properties; the disappointing operating
progress of German cable operators; and the significantly reduced
asset valuations for European cable properties, as a whole."

Meanwhile, Moody's noted that the "Ca rating of the notes
reflects their structural subordination to obligations at the
operating company level, including future draws under the EUR850
million credit facility."

On the other hand, Moody's said "the B3 rating of the senior
secured bank facilities" show that the "company's assets still
provide senior lenders with adequate protection given associated
collateral package and guarantees provided by the operating
subsidiaries."

The ratings action culminated Moody's review on IESY since March
15, 2002.  All of the ratings indicate a negative outlook.


GONTARD & METALLBANK: Survival Depends on Loan Portfolio Sale
-------------------------------------------------------------

Troubled German private bank Gontard & Metallbank AG is peddling
its EUR500 million loan portfolio as part of its strategy to
strengthen its deteriorating finances, says The Deal.com

The bank recently admitted that its losses, which reached EUR20
million, have exceeded 50% of its capital, forcing bank regulator
Bundesanstalt fr Finanzdienstleistungsaufsicht (BAFin) to order
a moratorium on business transactions late Monday.

The bank is major backer of IPOs on Frankfurt's Neuer Markt and
often extends loans using shares as collateral.  Due to the
deterioration of the stock market, the bank posted a 2000-2001
loss of EUR50.3 million, and took a capital increase of EUR15.3
million, says the news outfit.

A second capital increase worth EUR24.6 million failed after
investors shied away from the bank.  A company spokesman,
however, says that once the loan portfolio is sold, finding a
buyer will be easier.

Gontard & Metallbank has assets of EUR1.35 billion.  According to
the spokesman, the bank's capital ratio is under 5%, well below
the legal minimum of 8%, but the bank has liquid assets of EUR300
million.  He maintained that the bank is not insolvent.

Aside from selling its loan portfolio, the bank also plans to
reduce staff and concentrate on core business, The Deal.com says.


KINOWELT MEDIEN: Munich Court Begins Insolvency Proceedings
-----------------------------------------------------------

Munich Local Court opened insolvency proceedings for the assets
of Kinowelt Medien AG and subsidiary Kinowelt Lizenzverwertungs
GmbH.

Lawyer Dr. Wolfgang Ott, hitherto provisional administrator of
both companies, was appointed administrator.

The formal opening of insolvency proceedings is a necessary
precondition for continuing the process of restructuring the core
business. The administrator will continue to run the business
operations of both companies, and the other companies within the
Kinowelt Media Group will also continue full operations.

Intensive negotiations with potential investors continue apace,
with the aim of identifying and implementing a way of maintaining
core business operations in the short term. However, talks have
become significantly more difficult as a result of the changes
currently taking place in the German media sector.

At present the continued existence of the two companies Kinowelt
Medien AG and Kinowelt Lizenzverwertungs GmbH is unlikely, and a
more realistic scenario is for the existing assets of both
companies to be transferred to a newly founded company.

Kinowelt Medien AG offers brokerage services between
international licensing agencies and licensees distributing
television, cinema and video films. The group is also involved in
film productions.

For more information, contact: Kinowelt Medien AG, Corporate
Communications & Investor Relations, Tel.: +49 89-30 796 7270,
Fax: +49 89-30 796 7330, e-mail: presse@kinowelt.de or visit the
company's Web site: http://www.kinowelt-medien-ag.de


KIRCHPAYTV GMBH: Bankruptcy Boosts Survival Chances of Premiere
---------------------------------------------------------------

KirchPayTV GmbH & Co. KGaA filed Wednesday for insolvency,
becoming the third casualty in the ongoing financial turmoil at
the German media empire.

The collapse of the pay-TV platform follows KirchMedia and
TV.Berlin.  The filing, however, boosts the chances of
Premiere Fernsehen GmbH & Co. KG to find a buyer and continue as
a going concern.

The petition was lodged at the Munich district court and covered
six other related businesses and holding companies.  Kirch
Marketing Services GmbH also applied for bankruptcy at the
District Court in Hamburg.

The Munich court appointed Joseph Fuchsl, a bankruptcy specialist
from the law firm Dr Joseph Fuchsl & Kollegen, as interim
administrator for the main holding company and two subsidiaries
of KirchPayTV.

Premiere, a loss-making subsidiary, was not included in the
filing and will continue to operate, says spokeswoman Katrin
Gogler, who also disclosed that the channel "[has] enough
liquidity to keep going for the moment."

"The decisive point [of this filing] is that Premiere continue
broadcasting and that its customers remain with it," Mr. Fuchsl
said when asked for the implication of the insolvency petition.

Premiere CEO Georg Kofler says the filing eliminated the
complexity and opaqueness of the group's business structure,
which have deterred potential investors.

News Corp. chairman Rupert Murdoch, Germany's Bertelsmann Group
and U.S. cable magnate John Malone's Liberty Media Corp. have all
confirmed interest in salvaging Premiere.

Bernhard Tubeileh, a media analyst at Merrill Lynch & Co., says
Premiere has a good chance of success despite registering losses
of EUR989 million last year.  He doubts, though, that Mr. Murdoch
will try to buy the company through BSkyB, which could not afford
a new investment in German pay TV at this stage.

Premier, which has a subscriber base 2.4 million, is one of the
major arteries that caused the financial hemorrhage at Kirch. It
is not certain the size of its debts, but a banking source
familiar with the debt structure of Kirch Group put KirchPayTV's
debt to its banks at EUR756 million and Premiere's liabilities at
about EUR1 billion, says The Deal.com

Mr. Kofler says he will hold talks with all his suppliers and
business partners in the coming weeks to renegotiate overpriced
film deals and reduce heavy costs elsewhere. He had already
announced cost-cutting scheme that will save EUR500 million a
year.  Mr. Kofler promised to come up with concrete results by
early to mid-June to make the business attractive to potential
investors.

"We don't have time for tactical maneuver.  Our partners can rely
on a fair business partnership with Premiere. Already today, many
have signaled that they are prepared to restructure their working
relationship with Premiere. I am confident, moreover, that the
banks too will actively support Premiere's restructuring
program," Mr. Kofler told The Deal.com

Banking sources told the news outfit that the company has enough
liquidity to last until the end of next month.

Apart from Taurus, which holds 69.74% of KirchPayTV, Saudi Prince
Alwaleed bin Talal's Kingdom Holdings (3.12%), Capital Research
Management (2.7%) and Lehman Brothers Inc. (2.40%) are the other
shareholders of the failed business.


KIRCHPAYTV GMBH: BSkyB Doesn't Expect 'Put Option' to Be Honored
----------------------------------------------------------------

British broadcaster BSkyB is giving up hopes of recovering EUR1.7
billion from KirchGruppe, now that KirchPayTV GmbH has filed for
insolvency, says the Independent.

The amount represents the put option that the company has on a
22% stake it owns in the insolvent unit, which could be exercised
later this year.  The group had already anticipated this
possibility, writing off the amount from its recent financial
results.

BSkyB admits that it is unlikely for the company to receive a
significant chunk of the money unless the "liquidity issues"
surrounding Kirch and its Taurus holding company are resolved.


PHILIPP HOLZMANN: Bilfinger + Berger Confirms Interest in Units
---------------------------------------------------------------

German construction giant Bilfinger + Berger AG confirmed Tuesday
that it is after Philipp Holzmann's U.S. subsidiary J.A. Jones
and facility management unit HSG Holzmann Technischer Service.

According to Handelsblatt, the two assets are key to Bilfinger's
plan to get an 11% return on capital within the next three years.

"We are interested in a complete takeover of J.A. Jones and in
facility-management company HSG," CEO Herbert Bodner told the
German daily early this week.  He said his company stands a good
chance to win the bidding race.

This admission is the first official acknowledgement of the long-
running rumor that Bilfinger is among several construction groups
looking to buy a piece of insolvent Philipp Holzmann.

The acquisition of J.A. Jones is not surprising because Bilfinger
has been looking for an acquisition target that would afford it
critical mass to be successful in the U.S. market.  Mr. Bodner,
however, said that a sale will likely take longer.

"We have not yet reached the due diligence stage," he said.

HSG, on the other hand, was expected to attract several suitors
because of its output and order backlog, which amounted to about
EUR145 million each in 2000.  Aside from Bilfinger, a number of
buyers have also expressed interest in this unit.


RHI AG: Manufacturing Firm Issues 80% of Convertible Bonds
----------------------------------------------------------

In the first issuing phase, RHI AG, the Austrian supplier for
refractory materials for the steel industry, was able to place
80% of the convertible bonds tranches A and B of a total nominal
value of EUR144.7 million.

The said bonds had been available for subscription since April 8,
2002 in the context of the capital restructuring of the RHI
group. A total of EUR 115.2 million was subscribed for. This
convertible capital strengthens the beneficial equity capital of
the RHI group further according to plan.

The proceeds from the emission will be fully used to repay bank
liabilities. The banks participating in the RHI Group capital
restructuring will also receive a special repayment in 2002 on
the repayment plan agreed within the framework of restructuring
due to the positive liquidity development.

Of the volume placed, EUR100 million are accounted for by banks,
which, in addition to the EUR72.4 million reserved of tranche A,
bought a further EUR27.6 million of tranche B. The Board of
Management of RHI AG subscribed for a total of more than EUR4
million, convinced that the group will be restructured quickly
and sustainably.

The volumes of tranche B in the amount of EUR29.5 million, which
were not subscribed for in the now completed first phase, are
still selectively on offer for interested investors in the form
of a private placement.


TEAMWORK INFORMATION: Subscription Period for New Stocks
--------------------------------------------------------

On May 8, 2002's edition of the Federal Gazette, Teamwork
Information Management AG has published its next restructuring
step: the capital reduction in the ratio of 5:1.

At the end of May 10, 2002, the stocks in the company will be
converted and the conversion will become effective May 13, 2002.

Existing stockholders of the company can exercise their
subscription rights to the new stocks in the ratio of 1:1 during
the period May 13 through May 27, 2002 inclusive.

The subscription price of the new stocks is EUR1.00. On expiry of
the subscription period any stocks not subscribed by existing
stockholders will be taken over by the financial investor of
teamwork AG, Aktieninvestor.com AG.

Copies of the incomplete issue prospectus dated April 23, 2002
and the supplement in compliance with sections 10 and 11 of the
German Prospectus Law, dated May 3, 2002 can be obtained free of
charge from teamwork AG, Lang & Schwarz Wertpapierhandel AG,
Dusseldorf and from the Frankfurt Stock Exchange, Listing
Committee.

The details relating to the rights issue have also been published
on May 8, 2002's issue of the Federal Gazette.

The capital reduction will lead arithmetically to a five-fold
increase in the teamwork stock price, the authorized capital
having been reduced from 4,363,230 to 872,646 stocks.

The subsequent first capital increase in the ratio of 1:1 will
then raise authorized capital to 1,745,292 stocks. This would
mean that arithmetically the new teamwork stock price, based on a
price before the capital increase of 0.65 euros, and after
discount for the rights issue, would be listed at 2.13 euros (5 x
0.65 euros + 1 euro : 2) after the capital increase.

And this does not take into account the company's increased value
as a going concern as a result of capital from the capital
increase improving its working capital situation.

As further steps toward the restructuring of the company, it is
expected that the creditors will approve the insolvency plan in
June. The second capital increase in the ratio of 2:3 is then
planned for July. This step will take the company out of
insolvency completely.

Listed on the Neuer Markt since July 1999, Teamwork Information
Management AG is an international provider of collaborative
business solutions for the intranet and intranet serving Germany
and the UK.

Collaborative business allows electronic information management
both within companies and in their dealings with customers and
business partners.

With collaborative business, control of the information flow is
automated and business processes are electronically mapped. The
services offered by Teamwork AG include consulting, development,
implementation, support and training.

Contact Information: Dr. Sabine Brummel, Tel.: +49 5251-5201-145,
e-mail: sbrummel@teamwork.de


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

LANDIS NV: Erstwhile Dutch Telecom Darling Declares Bankruptcy
--------------------------------------------------------------

The global economic downturn fell another victim in Landis NV, a
Dutch IT services company that declared bankruptcy on Monday.

According to Dow Jones Newswires, the company finally retired
following months of speculations regarding its financial health.
The firm, best known for its work installing telecommunications
networks for companies, will be broken up to pay debts.

Interim CEO Cees van Steyn blames the demise of the company to
its rapid growth.  He said the company had aimed too high.

"Landis grew too quickly in expectations of a booming telecoms
market.  Those expectations never materialized," said Mr. van
Steyn, who took over in April when the company's condition had
deteriorated beyond repair.

In an interview with the newswire, analyst Martijn den Drijver of
Bank Insinger De Beaufort traced back the company's trouble to
its acquisition of Dutch peer Detron NV in June 2000.

He said the cost of integrating Detron to its business and the
cutback in spending by big clients like Royal KPN NV sealed the
fate of the company.

But up until the filing, shareholders never had any clue of
troubles in the horizon.  This as the company posted strong
earnings in the first half of 2001, while the rest in the market
reported losses due to the slowdown, says the newswires.

The first glimpse of the storm came only in mid-January this year
when the company abruptly announced that it had sold its
distribution activities, which represent 65% of sales, to South
Africa's Datatec Ltd. for an undisclosed sum.  Datatec, however,
backed out of the deal in mid-March after performing due
diligence.

From then on the company's stock plunged and doubts about its
financial footing mounted after it delayed publication of yearly
results several times.  Final figures released on April 11 showed
a loss of EUR52 million in 2001, a 180-degree turnaround from a
profit of EUR24.7 million the year before.

The company admitted thereafter that its debt-to-liquid asset
ratio no longer met the terms of its EUR146 million-bank loan,
and that it would try to strike a deal with banks, the newswires
says.

On April 22, the company suspended payments to creditors, and on
April 25, it reached an agreement with Datatec to sell the
distribution activities for just EUR7 million - on condition that
Landis be given the right to collect the business's EUR75 million
in accounts receivable and inventories, says the newswires.

Mr. Van Steyn disclosed Monday that even if the company were to
turn out successful in collecting this money, it still wouldn't
be enough to pay its debts.

The chief executive says the only consolation from declaring
bankruptcy is that negotiations to sell remaining parts of the
company can now be concluded quickly.

Analyst Mr. den Drijver, on the other hand, says the company's
failure to integrate its business well is in fact a plus now.

"There was one unexpected benefit of Landis not integrating its
acquisitions very well though: It looks as though the company
will easily dissolve back into its constituent parts," he told
the newswire.

For more information, visit the company's Web site:
http://www.landis.nl


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

KVAERNER ASA: Strengthens Oil And Gas Activities in Asia, U.S.
--------------------------------------------------------------

Kvaerner, the international oil services engineering and
construction, and shipbuilding Group, announced Wednesday that
its oil and gas business, Aker Kvaerner, has strengthened its
presence in the Gulf of Mexico and Asia Pacific regions with the
integration of an additional 1,800 engineering and project
management staff from Kvaerner E&C.

"Through this strategic move - which will make more efficient use
of our overall resources, and improve our co-ordination in the
market - Kvaerner will strengthen its presence in the oil and gas
industry, and will be able to work more effectively with its
global and regional customers," said Helge Lund, Group President
& CEO.  "At the same time, the move will enable us to better
focus our E&C resources - providing an improved service within
this segment too," concluded Mr. Lund.

Aker Kvaerner's global activities within the oil and gas industry
will now be focused on Oslo and Stavanger in Norway, Aberdeen in
the U.K., Houston in the USA, and in Singapore. Now with some
1,600 local staff, Aker Kvaerner becomes one of the largest
providers of engineering and project management services in
Houston.

"We believe our offshore field development competence is
particularly relevant in Houston as our customers here typically
engage in frontier development projects in many of the world's
most demanding deepwater areas," said Sverre Skogen, CEO of Aker
Kvaerner.  "The ability to service our oil and gas customers,
both onshore and offshore, will strengthen our presence in the
worldwide market - as well as improve our ability to use Aker
Kvaerner's skilled workforce more efficiently."

To further strengthen its position in the Houston area, Aker
Kvaerner has decided to move certain management functions from
Norway and establish a regional headquarters in the U.S. Jon Erik
Reinhardsen has been appointed Deputy CEO for Aker Kvaerner - and
he will head the U.S. organization for that business area.  He
will also continue to lead the Products & Technology division of
Aker Kvaerner.

Other key Aker Kvaerner executives in Houston are Erik Wiik -
head of the Field Development International division, and George
Doremus - who will continue to lead the onshore business,
including Kvaerner E&C's chemicals, polymers, and refining
activities.

Following the re-organization, a total of some 6,000 Aker
Kvaerner employees will be attached to the regional headquarters
in Houston, which will account for combined annual revenues of
approximately US$1.2 billion.

In Asia Pacific, Singapore will become the main hub for Aker
Kvaerner.  The region will serve the key markets of China,
Malaysia and Indonesia, in addition to Vietnam and Australia,
through a network of facilities including Singapore, Beijing,
Shanghai, Kuala Lumpur, Jakarta and Perth.

The 1,200 Aker Kvaerner staff in the region is involved in front
end design, engineering and project management for development
projects as well as maintenance and operations support. Aker
Kvaerner also has substantial resources in the provision of
supplies for marine, drilling and subsea products in the region.

Based in Singapore, George Lim will lead Aker Kvaerner's Asia
Pacific operations, reporting to Sverre Skogen.

Kvaerner E&C's existing customer base and markets will be
unaffected by today's announcement - with the newly combined
offices and resources continuing to serve these important
activities.  Keith Henry, CEO of Kvaerner E&C, commented: "For
Kvaerner's operations as a whole, the integration of our
resources will provide much stronger and focused locations from
which we can serve our customers.

For Kvaerner E&C - it allows us the opportunity to be more
efficient, to concentrate our efforts on improving our existing
global operations - and to more clearly address the needs of our
customers."

The Kvaerner Group's activities are organised in four core
business areas: Oil & Gas, E&C (Engineering & Construction), Pulp
& Paper, and Shipbuilding.

Following the merger between Aker Maritime and Kvaerner's Oil &
Gas business, the Kvaerner Group expects to have revenues in 2002
approaching US$6 billion, with some 42,000 permanent staff
located in more than 30 countries throughout Europe, Africa, Asia
and the Americas.

For further information, contact: Paul Emberley, Vice President,
Group Communications, Kvaerner ASA: +44 (0)20 7339 1035 or +44
(0)7768 813090 or paul.emberley@kvaerner.com or Geir-Arne
Drangeid, Senior Vice President, Group Communications, Kvaerner
ASA: +47 67 51 30 36 or visit the website at www.kvaerner.com
For hi-resolution pictures of Helge Lund, Sverre Skogen and Keith
Henry, email jennifer.osborn@kvaerner.com


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

TELEKOMUNIKACJA POLSKA: Urges Banks to Relax Loan Conditions
------------------------------------------------------------

Polish telecom operator Telekomunikacja Polska SA is in danger of
breaking debt covenants that could allow banking creditors to
call in some of their roughly PLN14 billion loans.

According to the Financial Times, the company is currently asking
creditors, led by the European Investment Bank and Deutsche Bank,
to allow a one-time upward adjustment of a covenant capping its
debt-to-EBITDA ratio at 2.5.

Chairman Marek Jozefiak did not reveal to the Financial Times the
new ratio the firm is seeking, citing the loans' confidentiality
agreement.  He expects an agreement with banks by end of June.

"I see no danger that we should not be in order as regards the
agreements we have signed.  There is no reason for any fears,"
Mr. Jozefiak told the Financial Times.

Last month, investors dropped the company's shares and rating
agencies put it on watch for a possible downgrade, after auditors
warned the firm could breach the covenant by end of June.

The chairman blamed charges worth more than PLN1 billion in the
2001 earnings as the culprit for the inflated debt-to-earnings
ratio.  These charges were mostly due to restructuring costs. The
company plans to lay off about 10,500 workers this year.

"The reserve is weighing heavily on this half year, but in the
near future we will be relieved of it," Mr. Jozefiak told the
Financial Times.

He expects the company to be "well within the limit" set out in
the loan covenant by December, when the covenant is reviewed
again.

The dominant Polish firm is controlled by France Telecom.  Its
earnings from fixed-line operations have stagnated due to growing
competition from rival mobile and domestic long-distance
providers, the report says.


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

TERRA LYCOS: Reveals First-Quarter 2002 Financial Results
---------------------------------------------------------

Terra Lycos, the largest global Internet network, announced
Wednesday its financial results for the first quarter of fiscal
year 2002.

During the first quarter of 2002, Terra Lycos earned revenue of
EUR161 million, in line with the Company's previously announced
forecast. In the quarter, the media business, which includes
advertising, integrated marketing solutions, e-commerce and
portal subscriptions, accounted for 56% of total revenue, and the
access and communications services business accounted for 44%.

Revenue from access and communications services was 28% higher
than the first quarter last year due to increased broadband
penetration and significant market acceptance of the Company's
access products and paid communications services.

Despite a difficult advertising market, mainly in the United
States, which caused media revenue to decline 26% over the same
period last year, the Company's media revenue in Spain and Latin
America grew by 38%, compared to the first quarter of 2001.

Terra Lycos established a series of strategic commercial
alliances with leading companies in the first quarter, such as
the agreement in the United States with FoxSports.com, one of the
world's leading sports Web sites.

Terra Lycos also launched global broadband products, such as the
special 2002 World Cup Soccer site in 17 countries. The Company
also launched important vertical portals in certain markets,
including Educaterra, the largest transactional supplier of
Spanish and Portuguese e-learning services in the world.

The Terra Lycos "OBP" (Open, Basic, Premium) strategy of
converting users from free visitors to paying customers has been
well received by the market. A series of recently launched paid
subscription services exceeded expectations in the first quarter,
including Tripod Plus and Angelfire Plus (personal Web page
design tools), Terra ADSL, Lycos Finance premium subscription
services, and the Lycos InSite subscription search service.

The Company also successfully launched recently in Spain its
first Internet pay-per-view services with the exclusive broadcast
of the famous "Operacion Triunfo" concerts.

Through these OBP initiatives, Terra Lycos earned EUR13 million
in revenue during the quarter from communications services (CSP)
and portal subscription services, a 29% increase over the first
quarter of 2001 or 8% over the previous quarter.

The communications and portal subscription services that the
Company is rolling out in all the regions in which it operates
are an important new source of revenue and a key competitive
advantage for Terra Lycos.

Terra Lycos has continued to increase its management efficiency
and reduce operating costs by improving the quality of its
business processes.

As a result, the Company has cut expenses by more than 31% since
the first quarter of 2001, a savings of EUR52 million, and has
cut expenses by 7% (EUR8 million) compared to the fourth quarter
of 2001.

Earnings before interest, taxes, depreciation and amortization
(EBITDA) for the first quarter were -EUR41 million, the best
performance to date, which represents a -25% margin, also in line
with the Company's previously announced forecast.

EBITDA margin improved by 18 percentage points compared to the
same period in 2001, or -EUR35 million.

Income before taxes in the first quarter of 2002 amounted to -
EUR161 million, an improvement of EUR21 million compared to the
previous quarter, despite reduced financial income contribution
(EUR15 million) due to the negative effect of the foreign
exchange rate and an interest rate drop.

Net income at the end of March 2002 totaled -EUR130 million, an
improvement of EUR44 million, or 25% compared to the first
quarter of the previous year. Net income, compared to the
previous quarter, decreased because of a EUR58 million reduction
of the corporate income tax credit.

During the quarter, amortization of goodwill from previous
acquisitions totaled EUR66 million, which represents almost 50%
of net income and has no impact on the Company's cash position.

Efficient cash management allowed Terra Lycos to maintain its
position as one of the best-capitalized companies in the sector.
The Company closed the first quarter with more than EUR2 billion
in cash, which will finance operations and allow Terra Lycos to
take advantage of market opportunities with a view to continuing
to grow profitably.

Terra Lycos closed the first quarter of 2002 with a total of 4.4
million access subscribers, 1.3 million of whom are paying
subscribers, an increase of 21% over the same period last year.
Of these, 272,000 are ADSL customers, an increase of 353% over
the first quarter of 2001 and 17% over the previous quarter.

In addition to access subscribers, the Company ended the first
quarter of the year with recurring revenue from its 500,000
communications and portal services subscribers, an increase of
44% over the final quarter of last year.

At the end of the first quarter of 2002, Terra Lycos therefore
had a portfolio of 1.8 million paying subscribers for both access
products and communications services, as well as portal
subscribers, an increase of 10% over last quarter.

The number of unique visitors rose 16% over the same period last
year, to a total of 115 million in March 2002. Average daily page
views totaled 450 million, an increase of 4% compared to the
first quarter of 2001.

Joaquim Agut, Terra Lycos executive chairman, said, "These
results demonstrate that Terra Lycos is confronting adverse
market conditions with a clear business vision, offering
customer-oriented services and content and adding new sources of
revenue. This clear market orientation, along with efficient cost
management and a strong financial position, gives Terra Lycos a
uniquely solid position in the Internet sector and strengthens
its positive trend toward profitability."

Terra Lycos is a global Internet group with a presence in 43
countries in 20 languages, reaching 115 million unique users per
month around the world. The group, which is the result of Terra
Networks S.A.'s acquisition of Lycos, Inc. in October 2000,
operates some of the most popular Web sites in the United States,
Canada, Europe, Asia and Latin America and is the largest access
provider in Spain and Latin America.

The Terra Lycos network of sites includes Terra in 17 countries,
Lycos in 26 countries, Angelfire.com, Atrea.com, ATuHora.com,
Azeler.es, Bumeran.com, Direcciona.es, Educaterra.com,
Emplaza.com, Gamesville.com, HotBot.com, Ifigenia.com,
Invertia.com, Lycos Zone, Maptel.com, Matchmaker.com, Quote.com,
RagingBull.com, Rumbo.com, Tripod.com, Uno-e.com and Wired News
(Wired.com), and others.

With headquarters in Barcelona and operating centers in Madrid,
Boston and elsewhere, Terra Lycos is traded on the Madrid stock
exchange and the Nasdaq electronic market.


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

LM ERICSSON: Compression Technology Boosts 3G Network Capacity
--------------------------------------------------------------

Ericsson http://www.ericsson.com/has closed the circle from the
initial idea to verification by hosting a successful Robust
Header Compression, ROHC, interoperability test recently in
Sweden.

ROHC means performance gains of typically 50% for IP based
services in all 3G systems.

Robust header compression, ROHC, will be used in all 3G cellular
systems (WCDMA, EDGE and, CDMA2000), substantially improving
spectrum efficiency and service quality for IP services such as
voice or video in Mobile Internet.

ROHC has been included in 3GPP specifications and is a new
Internet Engineering Task Force (IETF) proposed standard,
developed to increase efficiency over wireless links by
compressing IP headers.

For wireless IP services such as voice, the ROHC scheme reduces
packet size by 75% for IPv6 while still maintaining robustness to
transmission errors common on wireless links.

Ericsson has pioneered in this field, proposing a solution and
driving the standards process. In collaboration with Lulea
University of Technology in Sweden, Ericsson presented the first
robust header compression scheme called ROCCO to the IETF in June
1999.

In July 2000, Ericsson and Japan Telecom successfully completed
the world's first field trial of Voice over IP over WCDMA, using
ROCCO. The ROCCO scheme provided a major contribution to today's
ROHC standard.

The interoperability test was conducted together with Nokia,
Siemens/Roke Manor Research, Effnet and Panasonic. The test
covered the major parts of the ROHC standard including test of
robustness over emulated WCDMA/3G links.

Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.

Contact Information:

Ericsson Inc.

Communications:
Kathy Egan, 212/685-4030
pressrelations@ericsson.com

Investor Relations:
Glenn Sapadin, 212/685-4030
investor.relations@ericsson.com


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

ABB LTD: Signs Letter of Intent With Phillips Petroleum
-------------------------------------------------------

ABB, the global power and automation technology group, confirmed
Wednesday it signed a letter of intent to enter into a long-term
contract with Phillips Petroleum Company Norway for modification
work and maintenance assistance on oil and gas platforms in the
Ekofisk field in the North Sea.

The initial term of the contract is for four-and-a-half years,
with options for three two-year extensions, for a potential life
span of nearly eleven years.

The contract's value will fluctuate from year to year, but is
worth an average of US$60 million annually. ABB expects to book
the order in the next few months, pending completion of
contractual documents.

"We see this letter of intent with Phillips as an acceptance of
our strategy for modification and maintenance work in Norway, and
confirmation of ABB's position as a leading player in this
market," says Gorm Gundersen, ABB executive vice president and
head of the Oil, Gas and Petrochemicals division.

When financially closed, ABB will have contracts on a total of 43
platforms and three onshore facilities in Norway, spread among
three major customers: Norsk Hydro, Statoil and Phillips
Petroleum. The Phillips contract covers project management,
engineering, fabrication and start-up work, and will involve
about 300 people onshore and 300 offshore. Work is expected to
begin immediately.

Last week, ABB announced a US$330 million contract with Statoil
of Norway for maintenance and modification work on six offshore
oil and gas platforms and an onshore processing plant.

ABB (www.abb.com) is a global leader in power and automation
technologies that enable utility and industry customers to
improve performance while lowering environmental impact. ABB has
152,000 employees in more than 100 countries.


ARTHUR ANDERSEN: KPMG Signs Letter to Buy Andersen's Other Units
----------------------------------------------------------------

KPMG Consulting Inc. http://www.kpmgconsulting.com,one of the
world's largest business consulting and systems integration
firms, said Wednesday that it has signed a Letter of Intent to
acquire the Business Consulting units of member firms of Andersen
Worldwide Societe Cooperative, also known as Andersen Worldwide.

The Letter of Intent is an offer to acquire up to 23 independent
Andersen consulting units at a price of up to US$284 million.

Additionally, up to 6.5 million shares of stock will be issued
over a three-year period to Andersen's consulting partners who
join KPMG Consulting in connection with the transaction.

The Letter of Intent covers the acquisition of consulting
practices of Andersen Worldwide member firms in Europe, the
United States, Asia Pacific and Latin America.

The acquisitions are subject to the execution of definitive
binding agreements and satisfaction of customary closing
conditions with each business consulting unit.

In addition, the acquisition by KPMG Consulting of the business
consulting practice of Arthur Andersen LLP in the United States
is subject to the satisfactory resolution of potential liability
issues.

KPMG Consulting has already completed the purchase of the
Andersen consulting practices in Hong Kong and in China.

The combined net revenue of the Andersen consulting practices
included in these proposed transactions was approximately US$1.4
billion in FY01, more than half of which was generated from
Global 2000 clients.

Included among the potential benefits of these acquisitions, KPMG
Consulting will:

  *  Have significantly extended its geographic balance and
     reach;
  *  Have increased strength and coverage in the targeted
     industries it serves;
  *  Have increased its client base to more than 700 of the
     Global 2000 companies; and
  *  Have added depth and breadth of talent, skills and
     leadership in the business with a combined global workforce
     of more than 16,000 employees.

KPMG Consulting, Inc., based in McLean, Virginia, is one of the
world's largest business consulting and systems integration firms
with approximately US$2.9 billion in annual revenues for the
fiscal year ended June 30, 2001.

Around the world, KPMG has over 9,000 employees provide business
and technology strategy, systems design and architecture,
applications implementation, network and systems integration, and
related services.

KPMG's business and technology solutions are tailored to meet the
specific needs of the industries we serve, and are delivered
through global industry-focused lines of business, including
communications and content companies, consumer and industrial
markets, financial services industries, high technology
companies, and federal, state and local governments.

KPMG Consulting, Inc. is an independent consulting company, no
longer affiliated with KPMG LLP, the tax and audit firm. Please
reference our company as KPMG Consulting, since KPMG is not an
abbreviated name for our business and is an unaffiliated firm.

The Andersen Business Consulting units are systems integrators
with a business driven consulting approach that use technology to
provide complete business solutions from strategy through
implementation.

Completion of the acquisitions is subject to the execution of
definitive agreements with each of the participating Andersen
Worldwide Member Firms. Each agreement will require appropriate
approvals from local partners and regulatory authorities.

There can be no assurance that all of the acquisitions, or any
specific number of acquisitions, will be completed. In certain
instances, the business consulting practices are discussing
possible transactions with other acquirers.

The significance of the acquisitions to KPMG Consulting is highly
dependent on the number of business consulting units that KPMG
Consulting ultimately acquires, and the specific practices that
are acquired. KPMG Consulting is unable to quantify at this time
the likely significance of the acquisitions that ultimately will
be completed.

Contact Information: John Schneidawind of KPMG Consulting, Inc.,
+1-703-747-5853, jschneidawind@kpmg.com; or Mary N. Hall of
Andersen Business Consulting, +1-214-698-5483,
mary.n.hall@us.andersen.com


SULZER MEDICA: U.S. Court Confirms Fairness of Settlement
---------------------------------------------------------

US District Court Judge Kathleen O'Malley has granted Sulzer
Medica -- www.sulzermedica.com -- final approval for the
settlement, involving hip and knee lawsuits, the Zurich-based
manufacturer said Wednesday.

Judge O'Malley also ruled that the opt-out period will end on May
15.

During the Final Fairness Hearing, the court in Cleveland, Ohio
studied whether the settlement submitted by Sulzer Medica was
balanced and fair toward the affected patients. In her ruling,
the Judge deemed the settlement to be fair, appropriate and
reasonable.

Patients, who do not actively opt out of the settlement by May
15, give their approval to the conditions of the proposed
settlement and promise to refrain from pursuing individual
claims. After the end of the opt-out period, Sulzer Medica has a
period of five business days to give its final approval to the
settlement.

"We are very pleased with the outcome of the Final Fairness
Hearing", said Sulzer Medica CEO, Dr. Stephan Rietiker. "We are
confident that the opt out number will remain at a minimal rate,
although we are not in a position to comment on this subject
today. The final approval reinforces our promise to quickly and
fairly compensate the affected patients. "

Sulzer Medica's subsidiary companies develop, produce, and
distribute medical implants and biological materials for
cardiovascular and orthopedic markets worldwide. The product
array includes artificial joints, dental implants, spinal
implants and instrumentation, trauma products, heart valves,
synthetic blood vessels and stents for vascular and non-vascular
obstructions.


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

BRITISH AIRWAYS: Premature Sale of Go Costs Carrier GBP300 MM
-------------------------------------------------------------

The impending sale of Go to easyJet for as much as GBP400 million
means that British Airways may have missed out on a GBP300
million windfall by letting go of the subsidiary prematurely.

Shareholders are expected to question the wisdom behind the
decision to sell the former low-cost unit via a management buyout
in June last year.  Led by CEO Barbara Cassani and backed by
venture capital firm 3i and Barclays' private equity division,
the management only paid GBP100 million for the carrier.

EasyJet, on the other hand, recently offered to annex the airline
into its growing fleet for about GBP300 million to GBP400
million, the report says.  The deal will be an all-cash
transaction through a rights issue.

A British Airways spokesman told the Independent that there were
"absolutely no regrets" at selling out early.

"It was right for the business then. That sale was a very strong
return on the original investment of GBP25 million," the
spokesman pointed out.

British Airways will, however, receive GBP10 million in any deal
involving the sale of Go, as the latter had signed an agreement
to pay the amount if its ownership changes hands within five
years.


BRITISH TELECOM: To Sell Alarms Unit for at Least GBP 50MM
----------------------------------------------------------

In line with its avowed strategy to exit from non-core business,
British Telecom is selling BT RedCARE, a unit that sells fire and
security alarm systems, reports the Independent.

The report says the firm, whose main participation is in the
telecoms sector, has already signed a "heads of agreement"
document with Numerex, a technology company based in the US.  A
deal will be formally announced over the coming weeks.

The unit allegedly carries a price tag of between GBP50 million
and GBP100 million.  The proceeds from the sale will boost the
group's efforts to cut debts estimated at GBP14 billion.  Newly
appointed CEO Ben Verwaayen had recently pledged to cut down the
company's debt to below GBP10 billion over the coming year.

The subsidiary employs 200 people and its products are well known
among businesses that need to monitor buildings remotely.  This
sale follows the disposal of the 50% stake of British Telecom in
e-peopleserve, a human resources outsourcing business.  Accenture
paid US$70 million in cash for the stake.


CLUBHAUS PLC: Announces Results of EGM and Directorate Changes
--------------------------------------------------------------

The Kent-based leisure business operator announced Wednesday that
at the EGM held on May 8, in connection with the proposed capital
restructuring as set out in the Circular to shareholders dated
April 12, 2002, the resolutions to approve the proposals were
duly passed will a majority of over 99% of votes in favour.

The Company also said that Tuesday's Bondholder meeting to
approve the scheme of arrangements, as set out in the Circular,
the resolutions to approve the proposals were passed unanimously.

It is expected that the Court hearing to sanction the scheme of
arrangements will be on May 16, 2002 and, if sanctioned, it will
become effective on May 17, 2002.

It is expected that the new ordinary shares to be issued pursuant
to the capital restructuring will then be admitted to AIM on May
20, 2002.

In addition to the previously announced changes to the
composition of the Board, the Company announced that Rupert
Horner has resigned as Finance Director of the Company with
effect from the conclusion of Wednesday's EGM.

Rupert Horner joined the Company as Finance Director just over a
year ago and he has played a key role in the restructuring of the
Company.

The Company has strong reporting controls and systems in place
and the Company is confident that the finance department will
continue to function efficiently during the period of
consolidation, which will inevitably follow the restructuring.

It is the Company's intention to find a replacement Finance
Director in due course.  The Company would like to take this
opportunity to thank Rupert for all his hard work on behalf of
the Company.


CONSIGNIA: Industry Minister Admits Failed Talks With TPG
---------------------------------------------------------

Industry minister Douglas Alexander confirmed before a select
committee recently that Consignia will no longer pursue its
foreign expansion following the recent failure of talks with
Dutch postal giant TPG.

According to the Independent, Mr. Alexander had allegedly told
the committee that Consignia will instead focus on cutting its
cost, believed to be GBP1.5 million a day, and return it to
profitability before the market is opened to competition.

The minister admitted that talks with TPG had gone on for eight
months and centered on a merger of Royal Mail and Parcelforce
with TPG.  Accordingly, discussions commenced after Secretary of
State for Trade and Industry Patricia Hewitt gave Consignia
authorization to enter negotiations. The talks ended this March
without an agreement.

Mr. Alexander said a range of issues caused the failure of talks,
among them regulatory and industrial relations issues.  He also
added that valuation of the two businesses had also caused
several disagreements.

Consignia's overseas holdings include German Parcel.  The state-
owned postal company paid GBP300 million for this German company
at a time when its costs were running out of control in the UK,
the Independent says.


CORDIANT COMMUNICATIONS: Changes Management Board
-------------------------------------------------

Further to the announcement on March 19, 2002 regarding Board and
Operational management changes, David Hearn's effective
appointment date to the The Cordiant Communications Group PLC's
Board was April 29, 2002 and the effective resignation date from
the Cordiant Board for both Bill Whitehead and Ian Smith was
March 31, 2002.

The group's operations are divided into two business segments,
Advertising and Integrated Marketing, and Specialist
Communications.

Contact Information:

Cordiant
Nathan Runnicles
Tel: +44 (0) 20 7262 4343

College Hill
Alex Sandberg
Dick Millard


NTL INCORPORATED: Files Bankruptcy Petition in New York
---------------------------------------------------

NTL Incorporated announced Wednesday that it has filed its
previously announced Chapter 11 "prearranged" Plan of
Reorganization under U.S. law in New York.

As set forth in its Plan of Reorganization, the Company, a
steering committee of its lending banks and an unofficial
committee of its public bondholders (holding over 50% of the face
value of NTL and its subsidiaries' public bonds) have reached an
agreement in principle on implementing the re-capitalization plan
announced last month.  In addition, France Telecom and certain
other holders of the Company's preferred stock have also agreed
to the plan.

None of NTL's operating companies or customers in the U.K.,
Ireland or Continental Europe will be affected by the Chapter 11
filings. Trade creditors, suppliers and employees will continue
to be paid in the ordinary course of business.

As previously announced, under the proposed re-capitalization
plan, approximately US$10.6 billion in debt will be converted to
equity in two reorganized companies - NTL U.K. and Ireland and
NTL Euroco.

In addition, NTL has received from certain members of the
bondholder group a commitment of up to US$500 million in new
financing for NTL's U.K. and Ireland operations during the re-
capitalization process, subject to final approval by the U.S.
Court. This new financing will further ensure that the Company
and its business operations have access to sufficient liquidity
to continue ordinary operations.

Summary of the proposed Re-capitalization Plan:

NTL's current bondholders would in the aggregate receive 100% of
the initial equity of NTL UK and Ireland and approximately 86.5%
of the initial equity of NTL Euroco. NTL (Delaware) bondholders
would have the opportunity to reinvest all or a portion of NTL
(Delaware) cash to which they would otherwise be entitled under
the plan in additional shares of common stock of NTL UK and
Ireland.

Current preferred and common stockholders, including France
Telecom, would receive a package of rights (to be priced at a
US$10.5 billion enterprise value) and warrants entitling them to
purchase primary equity of NTL UK and Ireland at the consummation
of the plan (in the case of the rights) and for the duration of
the eight-year warrants, at prescribed prices.

If fully exercised, such rights and warrants would entitle the
current preferred stockholders to acquire approximately 23.6% and
the current common stockholders to acquire approximately 8.9% of
this entity's primary equity.

In addition, current preferred stockholders, other than France
Telecom, would receive approximately 3.2%, and current common
stockholders, other than France Telecom, would receive
approximately 10.3%, of the primary equity of NTL Euroco.  Bonds
at the Company's subsidiaries Diamond Holdings and NTL (Triangle)
would remain outstanding.

Subject to the consummation of the re-capitalization, France
Telecom would also receive NTL's 27% interest in Noos S.A.

The Company announced on May 2nd that it had reached a
comprehensive agreement in principle with a steering committee of
its lending banks and an unofficial committee of its public
bondholders on implementing its re-capitalization plan.

NTL offers a wide range of communications services to homes and
business customers throughout the U.K., Ireland, Switzerland,
France, Germany and Sweden.

In the UK, over 11 million homes are located within NTL's fiber-
optic broadband network, which covers nearly 50% of the U.K.
including, London, Manchester, Nottingham, Oxford, Cambridge,
Cardiff, Glasgow and Belfast. NTL Home now serves around 3
million residential customers.

NTL Business is a GBP600 million-operation and customers include
Royal Bank of Scotland, Tesco, Comet, AT&T and Orange. NTL offers
a broad range of technologies and resources to provide complete
multi-service solutions for businesses from large corporations to
local companies.

NTL Broadcast has a 47-year history in broadcast TV and radio
transmission and helped pioneer the technologies of the digital
age. 22 million homes watch ITV, C4 and C5 thanks to NTL's
broadcast transmitters.  With over 2300 towers and other radio
sites across the U.K., NTL also provides a full range of wireless
solutions for the mobile communications industry.

Copies of a prospectus under the U.K.'s Public Offers of
Securities Regulations 1995 in relation to the proposed issue of
shares of common stock and warrants by New NTL under the plan
will be published in due course and will be available following
publication free of charge at NTL's offices at Bartley Wood
Business Park, Hook, Hampshire RG 27 9 UP, during normal business
hours on any weekday (excluding Saturdays and public holidays)
for not less than one month from the date of the proposed offer.

For more information, contact:

U.S.
Media:
Steve Lipin
Brunswick Group
212-333-3810

Analysts:
John Gregg
212-906-8446

Bret Richter
212-906-8447

Tamar Gerber
212-906-8440

U.K.
Media:
Malcolm Padley
44-20 7746-4094
44-7788-978199

Analysts:
Virginia McMullan
44-207-909-2144


NTL INCORPORATED: Case Summary & Largest Unsecured Creditors
------------------------------------------------------------
Lead Debtor: NTL Incorporated
                               110 East 59th Street
             New York, New York 10022
             Telephone (212) 906-8440

Bankruptcy Case No.: 02-41316

Debtor affiliates filing separate chapter 11 petitions:

Entity                                     Case No.
------                                     --------
NTL (Delaware), Inc.                       02-41317
NTL Communications Corp.                   02-41318
Communications Cable Funding Corp.         02-41319
Diamond Holdings Limited                   02-41320
Diamond Cable Communications Limited       02-41321

Type of Business: The principal activity of NTL Incorporated
                  has been to raise funds in the financial
                  markets, primarily to support the financing
                  of operations and funding needs of certain
                  affiliates.

Chapter 11 Petition Date: May 8, 2002

Court: Southern District of New York

Judge: Allan L. Gropper

Debtors' Counsel: Kayalyn A. Marafioti, Esq.
                  Skadden, Arps, Slate, Meagher & Flom LLP
                  Four Times Square
                  New York, New York 10036
                  Telephone (212) 735-3000

Total Assets: $16,834,200,000

Total Debts: $23,377,600,000

A. Debtor's Largest Unsecured Creditors:

Entity                        Nature Of Claim      Claim Amount
------                        ---------------      ------------
Wilmington Trust Company      5-3/4% Convertible $1,225,683,330
Rodney Square North           Subordinated Notes
1100 North Market Street      Due 2009
Wilmington, Delaware 198900
Attention: Corporate Trust
Administration
Telephone: (302) 636-6058
Fax: (302) 636-4140

Wells Fargo Bank Minnesota,   6-3/4% Convertible $1,185,362,500
   National Association       Senior Notes
MAC N9303-120
Sixth and Marquette
Minneapolis, Minnesota 55479
Attn: Mr. Gavin Wilkinson,
      Vice President
Telephone: (612) 667-3777
Fax: (612) 667-9825

Wilmington Trust Company      7% Convertible       $502,542,516
                              Subordinated
                              Notes

Wilmington Trust Company      5-3/4% Convertible   $101,661,111
                              Subordinated Notes
                              Due 2011

ITN News Channel              Guarantee            Unliquidated
200 Gray's Inn Road           Obligation
London, England WC1X 8XZ
Attention: James Scorer
Telephone: 44 020 7430 4779
Fax: 44 020 7430 4305

The Studio                    Guarantee            Unliquidated
(c/o Vivendi Universal)
5-7 Mandeville Place
London, England W1U 3AR
Attention: Bradley Waxler
Telephone: 44 0207 535 3567
Fax: 44 0207 535 3565

Macquarie Communications      Guarantee            Unliquidated
Infrastructure Pty Limited    Obligation
No. 1 Martin Place
Sydney, Australia NSW 2000
Attn: Shemara Wikramanayake
Telephone: 61 2 8232 5103
Fax: 61 2 8232 3656

B. NTL Delaware's Largest Unsecured Creditors:

Entity                        Nature Of Claim      Claim Amount
------                        ---------------      ------------
Wilmington Trust Company      5-3/4%             $1,225,683,333
Rodney Square North           Convertible
1100 North Market Street      Subordinated
Wilmington, Delaware 198900   Notes due 2009
Attn: Corporate Trust
      Administration
Telephone: (302) 636-6058
Fax: (302) 636-4140

Wilmington Trust Company      7% Convertible       $502,542,516
                              Subordinated
                              Notes Due 2008

Wilmington Trust Company      5-3/4%               $101,661,111
                              Convertible
                              Subordinated
                              Notes Due 2011

Australian Broadcasting       Guarantee            Unliquidated
   Corporation                Obligation
Attention: Craig Todd
Telephone: 61 2 9950 3346
Fax: 61 2 9950 3441

SBS Corporation               Guarantee            Unliquidated
Attention: Hugh James         Obligations
Telephone: 61 2 9430 3172
Fax: 61 2 9430 3773

Rangers Co. UK Limited        Guarantee            Unliquidated
Ibrox Stadium                 Obligation
150 Edmiston Drive
Glasgow, Scotland G51 2XC
Attention: Managing Director

Leicester City plc            Guarantee            Unliquidated
City Stadium                  Obligation
Filbert Street
Leicester, England LE27FL

The Football League           Guarantee            Unliquidated
Edward VII Quay               Obligation
Navigation Way
Preston
Lancashire, England PR2 2YF
Attention: Chief Executive
Fax: 44 01772 325801

The Football Association      Guarantee            Unliquidated
Premier League Limited        Obligation
11 Connaught Place
London, England W2 2ET

Aston Villa plc Villa Park    Guarantee            Unliquidated
Birmingham, England B6 6HE    Obligation

Cable & Wireless              Guarantee            Unliquidated
124 Theobalds Road            Obligation
London, England WC1X 8RX
Attn: Company Secretary
Telephone: 44 020 7315 4272

Commonwealth of Australia     Guarantee            Unliquidated
Department of                 Obligation
Communications, Information,
Technology and the Arts
GPO Box 2154
Canberra, Australia ACT 2601
Telephone: 61 2 6271 1533
Fax: 61 2 6271 1717

America Online, Inc.          Guarantee            Unliquidated
AOL (UK) Limited              Obligation
80 Hammersmith Road
London, England W14
Attn: The Company Secretary
Telephone: 0800 376 5432

C. NTL Communications' Largest Unsecured Creditors

Entity                        Nature Of Claim      Claim Amount
------                        ---------------      ------------
Wells Fargo Bank Minnesota,   9-3/4% Senior      $1,190,702,369
National Association          Deferred
MAC N9303-120                 Coupon Notes
Sixth and Marquette           Due 2008
Minneapolis, Minnesota 55479
Attn: Mr. Gavin Wilkinson,
      Vice President
Telephone: (612) 667-3777
Fax: (612) 667-9825

Wells Fargo Bank Minnesota    6-3/4%             $1,185,362,500
                              Convertible
                              Senior Notes
                              Due 2008

Wells Fargo Bank Minnesota    11-1/2% Senior     $1,079,852,083
                              Deferred
                              Coupon Notes
                              Due 2006

Wells Fargo Bank Minnesota    11-1/2% Senior      $666,727,431
                              Notes Due 2008

Wells Fargo Bank Minnesota    11-7/8% Senior      $534,470,486
                              Notes Due 2010

Wilmington Trust Company      7% Convertible      $502,542,516
Rodney Square North           Subordinated
1100 North Market Street      Notes Due 2008
Wilmington, Delaware 198900
Attention: Corporate Trust
           Administration
Telephone: (302) 636-6058
Fax: (302) 636-4140

The Bank of New York          10% Senior          $408,222,222
48th Floor                    Notes Due 2008
One Canada Square
London E15 5AL
England
Attn: Sunjeeve D. Patel,
      Assistant VP

Wells Fargo Bank Minnesota    9-3/4% Senior       $391,746,728
                              Deferred
                              Coupon Sterling
                              Notes Due 2009

Wells Fargo Bank Minnesota    10-3/4% Senior      $389,486,391
                              Deferred
                              Coupon Sterling
                              Notes Due 2008

Wells Fargo Bank Minnesota    12-3/8% Senior      $379,555,576
                              Deferred
                              Coupon Notes
                              Due 2008

Wells Fargo Bank Minnesota    9-7/8% Senior       $347,457,882
                              Euro Notes Due
                              2009

Wells Fargo Bank Minnesota    12-3/4% Senior      $296,887,175
                              Deferred
                              Coupon Notes
                              Due 2005

Wells Fargo Bank Minnesota    12-3/8% Senior      $293,719,219
                              Euro Notes Due
                              Due 2008

Wells Fargo Bank Minnesota    9-1/4% Senior       $247,507,986
                              Euro Notes Due
                              2006

Wells Fargo Bank Minnesota    9-1/2% Senior       $188,714,074
                              Sterling Notes
                              Due 2008

Wells Fargo Bank Minnesota    11-1/2% Senior      $150,118,740
                              Deferred
                              Coupon Euro
                              Notes Due 2009

AT&T Uniplan Service          Trade Debt               $11,984
P.O. Box 9001309
Louisville, Kentucky 40290

Met Police Headquarters       Guarantee           Unliquidated
Offices of the Commissioner   Obligation
   and Receiver of the
   Metropolitan Police
New Scotland Yard
1 Drummond Gate
London, England SW1
Telephone: 44 020 7230 1212

TXU Energy                    Guarantee           Unliquidated
P.O. Box 40                   Obligation
Wherstead Park
Wherstead, Ipswich
Suffolk, England IP9 2AQ
Telephone: 44 01473 688688

D. Diamond Cable Communications' Largest Unsecured Creditors

Entity                        Nature Of Claim      Claim Amount
------                        ---------------      ------------
The Bank of New York          11-3/4% Senior       $554,223,875
48th Floor                    Discount Notes
One Canada Square             Due 2005
London E15 5AL England
Attn: Sunjeeve D. Patel,
      Assistant VP

The Bank of New York          10-3/4% Senior       $429,791,882
                              Discount Notes
                              Due 2007

The Bank of New York          13-1/4% Senior       $288,143,047
                              Discount Notes
                              Due 2004

E. Diamond Holdings' Largest Unsecured Creditors

Entity                        Nature Of Claim      Claim Amount
------                        ---------------      ------------
The Bank of New York          10% Senior           $197,933,295
48th Floor                    Sterling Notes
One Canada Square             Due 2008
London E15 5AL
England
Attn: Sunjeeve D. Patel,
      Assistant VP

The Bank of New York          9-1/8% Senior       $112,481,493
                              Notes Due 2008


SCOOT.COM PLC: Denies Rumor of Possible Sale to British Telecom
----------------------------------------------------------------

British Telecom and Scoot.com PLC dismissed as speculations
reports that they are in advanced talks, with the former
interested in taking over the latter's directories business.

Scoot.com says there's been no change in its strategic plans
since the publication of its full-year results last month.  The
telecom giant, on the other hand, denied it has been in talks
with the online directory-service provider for weeks now.

Scoot.com Plc, valued as much as GBP2.5 billion during the tech
boom, now only has GBP4.4 billion in the bank, which could last
it only until August, said the Troubled Company Reporter-Europe
citing The Guardian early this month.

The company recently bared losses of GBP27.8 million for 2001.


SCOOT.COM PLC: Company Profile  (Updated as of 04/30/02)
--------------------------------------------------------

Name: Scoot.com PLC
      Beaufort House
      Cricketfield Road
      Uxbridge, Middlesex
      UB8 1QG United Kingdom

Phone:  +44-1895-520000
Fax:     +44-1895-520001
Website: http://www.scoot.com

SIC: Web Information Services
Employees: 380
Net Loss: GBP180.3 million/US$262.6 million (12/31/01)
Total Assets: GBP52.7 million/ US$76.8 million (12/31/01)
Total Liabilities: GBP48.6 million/US$70.8 million (12/31/01)

Type of Business:  Serving the UK and Europe, Scoot.com offers a
database of more than 2 million businesses available by phone,
the Internet or digital TV.

The company's significant shareholders include Vivendi SA
(21.25%), SIS Segaintersettle AG* (6.08%), Ronald Zimet (4.91%),
Laxey Investors Ltd (4.89%), Merrill Lynch (3.75%) and Gall & Eke
Ltd (3.10%).

*denotes an unconfirmed manager

Trigger Event: At the brink of bankruptcy, Scoot.com sold its
subsidiaries: Loot UK, Scoot Europe Joint Venture, its Ireland
and USA businesses in order to settle the company's long-term
debt last year.

Executive Chairman: Richard Eykel
Chief Operating Officer: Jon Molyneux
Managing Director: Terry Martin

Bankers:  Lloyds TSB Bank PLC, Bank of New York
Stockbrokers: Cazenove & Co.
Auditors:  Arthur Andersen
Lawyers (UK) Charles Russell
Lawyers (USA) Weil, Gotshal & Manges
Financial PR Advisers:  Buchanan Communications

No. of Shares in Issue: 723 million

                                    ***********

        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.


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