/raid1/www/Hosts/bankrupt/TCREUR_Public/020612.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Wednesday, June 12, 2002, Vol. 3, No. 115


                            Headlines

* F I N L A N D *

SONERA CORPORATION: Politicians Key to Success, Says Hintikka

* G E R M A N Y *

COMMERZBANK: Will Bring Retail Banking Services Back to Black
DEUTSCHE TELEKOM: Nixes EUR 1BB Mobile Phone IPO This Year
DEUTSCHE TELEKOM: Wins EUR 6BB Contract From Transport Ministry
EM.TV & MERCHANDISING: Shareholder Accuses BayerLB of Fraud
MOBILCOM AG: France Telecom Not Starving German Unit, Say Sources
STP ELEKTRONISCHE: Warns of Insolvency Due to Falling Orders

* I R E L A N D *

ELAN CORPORATION: Will Raise US$ 1BB by Selling Non-core Units

* I T A L Y *

FIAT SPA: CEO Cantarella Quits to Afford Group Fresh Start
FIAT SPA: Workers Vow "Resistance" to Early Merger With GM

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

KPNQWEST NV: Shutdown Averted as Clients Promise to Pay Bills
LYCOS EUROPE: Signs EUR 8.5MM Deal to Provide Access to Overture
KPNQWEST NV: Infonet and KPN Telecom Sign Agreement With KPNQwest
UNITED PAN-EUROPE: Annual Meeting Scheduled for June 20
VIATEL INC: Telecoms Network Group Emerges From Chapter 11

* P O L A N D *

ELEKTRIM SA: Changes Date of Disclosure for Financial Statements

* S W E D E N *

SONG NETWORKS: Signs Deal to Supply SEK 5.4MM in Network Capacity

* U N I T E D   K I N G D O M *

COLT TELECOM: In GBP 18MM Bond Buyback for GBP9MM Cash Outlay
CONSIGNIA: Enters Home Contents Insurance to Maximize Earnings
ELECTRICAL INSULATION: Receivers Sell Business as Going Concern
ENERGIS PLC: Holders Want Debt-Equity Swap, to Junk Present Offer
FRIARY INTERMEDIATE: Notice of Petition for Capital Reduction
ICI: Chemicals Group Will Sell Security Systems Business
LASTMINUTE.COM PLC: Announces Partnership Agreement With LCC24
RAILTRACK PLC: Statement Regarding Contractor Safety Breaches


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


SONERA CORPORATION: Politicians Key to Success, Says Hintikka
-------------------------------------------------------------
Sonera Corporation President Tapio Hintikka is still confident
the firm's merger with Swedish rival Telia will push through,
despite suggestions that it faces several obstacles.

Mr. Hintikka says a critical ingredient for the deal to succeed
is non-interference by politicians.  He doesn't expect any,
though, says AFX News.  Both telecom operators are still state-
owned.

In its May 30 issue, Troubled Company Reporter-Europe said that
Anders Igel, who will head the merged Telia-Sonera entity,
believes that approval of the first pan-Nordic telecom
combination will take time, in part because of a possible formal
probe by the European Competition Commission.

"We are going to have some delays.  This is not only because of
the European Union, but also the U.S. Securities and Exchange
Commission, and various competition authorities which have to
have their say," Mr. Igel said.

"We will therefore have a slightly tighter timetable than
planned, but we will try to maintain speed and tempo," he said.

In March, Telia announced it would pay 1.5 own shares for each
Sonera share in the first European cross-border merger of former
telecoms monopolists.  The deal is worth EUR7.4 billion, TCR-
Europe said.

The companies is expecting approval from the EU this month or
early July, but this could be delayed if the Commission starts a
detailed three-month probe, which would delay a potential
approval until autumn, Mr. Igel said.


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


COMMERZBANK: Will Bring Retail Banking Services Back to Black
-------------------------------------------------------------
Commerzbank's restructuring plans to bring its Retail Banking
business return to profitability.

According to the Financial Times Germany and AFX, a restructuring
plan has recently been concluded which will call for branch
closure and termination of about 1,300 offices in the year 2003
until 2004.

A capital return from 6% to 7% is expected, Commerzbank Retail
Banking executive Martin Blessing said.

Beginning 2005, the private bank will also focus to earn 10%
capital costs or capital net yield of approximately 15% before
taxes.

About EUR 1.45 billion capital funds will be required for the
transaction. The private bank must therefore secure EUR 220
million in order to achieve their aim, the report said.


DEUTSCHE TELEKOM: Nixes EUR 1BB Mobile Phone IPO This Year
----------------------------------------------------------
Debt-strapped German phone incumbent Deutsche Telekom has
completely scrapped a plan to float its mobile unit T-Mobile
International this year, says Total Telecom.

Citing German daily Sueddeutsche Zeitung, the industry paper said
the lack of clear indications that the market will recover this
year forced the telecom operator to junk the plan.  The public
offering was originally scheduled early this year, but was
delayed until fall this year to await market improvements.

But the German paper says the plan has been completely nixed.  An
unnamed spokesman for the company declined to comment on the
report, but reiterated that the IPO would depend on market
conditions.

Sueddeutsche Zeitung says the board halted preparations for
floatation due to the continuing slide of Deutsche Telekom's
shares towards the key 10-euro mark in the past week.

This public offering is a key part of the company's debt-
reduction program, which is trying to trim down its EUR67 billion
estimated debts.  The company is hoping to raise EUR10 billion
from this transaction.

The European telecoms market has been battered largely due to
skepticism about growth and profit potentials.  After incurring
huge debts from buying expensive mobile phone licenses, most
telecom operators in Europe have suffered shares sell-out in
recent months.

The industry paper says the European telecoms index has lost 40%
this year, with Deutsche Telekom under-performing the index by a
further 13%.


DEUTSCHE TELEKOM: Wins EUR 6BB Contract From Transport Ministry
---------------------------------------------------------------
A consortium composed of Deutsche Telekom, DaimlerChrysler AG and
road-construction group Cofiroute is expecting to earn EUR600-700
million in revenues from a satellite-monitoring system, says
Handelsblatt.

The contract to build the system for toll purposes was awarded to
the ETC consortium by the German transport ministry, which also
expects to raise EUR3.37 billion in toll fees annually.

The consortium beat Ages Mautsysteme, a group headed by British
phone giant Vodafone and service station chains Aral and Shell.
Depending on the basis for the ministry's decision, the group
plans to challenge the award in court.

The contract is for the construction, financing and operation of
satellite-controlled systems to monitor heavy goods vehicles for
toll purposes, the German daily says.  The deal is estimated to
be worth EUR6-7 billion.

Deutsche Telekom and DaimlerChrysler's DaimlerChrysler Services
each controls 45% of the consortium, while the French partner
holds the rest.


EM.TV & MERCHANDISING: Shareholder Accuses BayerLB of Fraud
-----------------------------------------------------------
Werner Schmidt and his Bayerische Landesbank-Girozentrale, a
regional lender, are facing an investigation for aiding and
abetting fraud related to a deal between EM.TV & Merchandising AG
and KirchGruppe.

According to Die Welt, a shareholder has accused the banker of
said crime for accepting the 16.7% Formula One stake pledged by
the former management of EM.TV for the benefit of the bank's
customer KirchGruppe without any visible consideration.

A lawyer representing the shareholder told the German daily that
this deal was an unjustified over-collateralization of facilities
granted.   He argues that upon the bank's acceptance of the
pledge, it aided and abetted fraud.

The department of public prosecution is now looking into the
complaint and will decide shortly whether there is ground to
pursue a case against the bank and Mr. Schmidt.

EM.TV courted disaster two years ago after incurring heavy
losses.  The company, which is involved in media rights trading
and merchandising, is now restructuring and hopes to attain
breakeven status at core level in 2004.

Its 2001 results, published recently, showed encouraging
figures.  The German firm booked 75%-less pre-tax losses last
year at EUR331 million compared with the EUR1.34 billion in 2000.

The company said the restructuring implemented last year was
primarily responsible for the drop in losses. Last year saw the
disposal of EM.TV's stake in Formula One and the exceptional
write-down of EUR240 million, which accounted for the effects of
the slump in the advertising market.

As for revenues, the company recorded a 10% jump to EUR722
million in 2001 from only EUR656 million the year before.  EBITDA
also improved seven-fold to EUR286 million.


MOBILCOM AG: France Telecom Not Starving German Unit, Say Sources
-----------------------------------------------------------------
Contrary to reports, France Telecom has allegedly kept up
payments to MobilCom, its German mobile phone unit ,whose CEO has
been in a long-running row with the French group, says Reuters.

Citing unnamed sources, the news outfit says France Telecom
made a regular payment in the double-digit millions of euros on
Monday.  Earlier, speculations surfaced that the French minority
shareholder will cut financial aid due to the refusal of CEO
Gerhard Schmid to step down during a boardroom showdown last
week.

MobilCom needs to refinance a EUR4.7 billion loan next month and
needs about EUR1 billion this year to cover costs of building its
3G network.  Previous reports have said that France Telecom will
only come to the rescue if Mr. Schmid resigns.  The company has
about EUR6.1 billion of debts.

A banking-syndicate has been working on with France Telecom over
a debt-restructuring plan for MobilCom, seen by many observers as
a precursor to taking over the German phone.


STP ELEKTRONISCHE: Warns of Insolvency Due to Falling Orders
------------------------------------------------------------
German circuit board manufacturer STP Elektronische Systeme has
admitted to being threatened by insolvency due to falling orders
that have forced it to cut production capacity by half.

According to Frankfurter Allgemeine Zeitung, the company's dive
began last year when turnover dropped to EUR72 million.  Since
March last year, the company has shortened working hours to save
on cost.

The company says it tried to avoid insolvency by agreeing to sell
its car park, but it appears the move is not enough.  The report
did not say where this company is based.


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


ELAN CORPORATION: Will Raise US$ 1BB by Selling Non-core Units
--------------------------------------------------------------
Troubled Irish pharmaceuticals group Elan Corporation will sell
its non-core business activities in a bid to "regain its
credibility with shareholders," says the Telegraph.

The company also plans to ring-fence its controversial joint
venture undertakings and put them under one single house to be
named Elan Enterprises.  These off-balance sheet special purpose
vehicles are currently subject of an inquiry by the U.S.
Securities and Exchange Commission.

The company says it will focus on its core business: developing
and marketing drugs in neurology, pain management and auto-immune
systems.  Accordingly, subsidiaries and joint ventures outside
these areas will be disposed to raise about US$1 billion (GBP680
million).

Elan says there are no layoffs in the pipeline just yet.  But the
restructured group will lose "significant" number of sites around
the world.  The company did not identify those that will be sold
off to bolster its finances.

Another paper, the Independent, says the company will sell about
a dozen of its 32 research and manufacturing sites by the end of
next year.  Donal Geaney, chairman and CEO, concedes that Elan
has "an overly complex geographic and business structure," the
paper says.

The Nottinghamshire drug delivery site and Hertfordshire
pharmaceuticals plant, which together employ about 100 staff in
the U.K, will not be affected by the measure, the Telegraph says.

An unnamed spokesman denied that the move to separate the drug
delivery unit as a stand-alone division is a precursor to a sale
or flotation.

Elan shares jumped 90 to 557.5p Monday following the announcement
of these measures.  The company, listed in London, Dublin and New
York, is allegedly mulling a US$500 million buyback plan to pay a
portion of its US$900 million obligation that will become due
next year.


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


FIAT SPA: CEO Cantarella Quits to Afford Group Fresh Start
----------------------------------------------------------
Fiat SpA CEO Paolo Cantarella resigned Monday, just a month after
he was re-elected to the board and days after Chairman Paolo
Fresco praised him publicly, says The Guardian.

The report says Mr. Cantarella stepped down "in order to allow
the company and the shareholders to react in a positive way for
the company."  Uncertainties over the company's future following
its huge first quarter loss that followed its first full-year
loss in years have spawned speculations that the chief was
vulnerable.

"The resignation pains me. His decision to stand aside at this
difficult time for the company underlines his honor," Mr. Agnelli
said.

The chief's decision ironically comes after debt-rating agency
Standard & Poor's removed the company from its Creditwatch,
believing that "steps taken by management will have a material
effect on indebtedness and cash flows in the remainder of 2002."

The company recently inked a short-term financing deal with banks
in return for giving them immense influence in the company's debt
restructuring.

Fiat Auto, the group's hemorrhaging car-making division, posted
record losses in the first quarter, dragging the company EUR529
million below the profit line.  The group is now planning to
float its 90%-owned subsidiary Ferrari and to reduce its stake in
energy group Italenergia.

"Paolo Cantarella and Fiat's management group are working with
dedication and loyalty for the realization of plans which will
permit our group to take up again the path of robust and lasting
growth," Mr. Fresco said.

Mr. Cantarella leaves the group after 25 years of service, The
Guardian says.


FIAT SPA: Workers Vow "Resistance" to Early Merger With GM
----------------------------------------------------------
Works council at both Fiat Auto and Adam Opel AG, a unit of
General Motors, warn of "resistance" to an imminent takeover of
the Italian company by the world No.1 carmaker.

"Such a big-bang merger would only create new fundamental
difficulties," said Opel works council head Klaus Franz in an
interview with Handelsblatt.  He did not say what these
difficulties are.

Rumors are rife that General Motors, which owns 20% of Fiat Auto,
has internally approved a plan to exercise its option to takeover
the entire Italian business.  Accordingly, the American carmaker
is planning to adopt a unified product and marketing strategy for
both holdings.  The American group has yet to confirm these
speculations.

"The first thing Fiat has to do is solve its overcapacity
problems," Thomas Klebe, a representative of the powerful
engineering union IG Metall and current member of Opel's
supervisory board, told Handelsblatt.

The German daily says Opel employees are concerned that the woes
of their company will be compounded by the weakness of Fiat Auto.
The Italian firm recently posted EUR429 million in losses for the
first quarter.

Workers' representatives at the two companies warned Monday
against excluding them from any talks aimed at an accelerated
takeover.

"If we're not included, there will be real resistance," an IG
Metall spokesman said.  He did not reveal the form of resistance
they have in mind.


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


KPNQWEST NV: Shutdown Averted as Clients Promise to Pay Bills
-------------------------------------------------------------
On Monday, Trustees of KPNQwest delayed a plan to switch
off the firm's network, extending the deadline set for clients to
pay outstanding bills until noon yesterday, says Total Telecom.

Late last week, the trustees threatened to shutdown the company's
operations due to dwindling funds, in part caused by clients'
non-payment of bills.

"The administrators are willing to extend the deadline to give
customers more time to actually transfer the funds, provided they
give binding commitments to pay," a source told Total Telecom
Monday.

The report says KPN, the main client of the company and key
shareholder, was among those who pledged to pay its outstanding
bills.  KPN, however, denies it owes the company EUR23 million.

Meanwhile, the number of clients abandoning KPNQwest continues to
rise, with cable-TV operator United Pan-Europe Communications
becoming the latest to bail out.  UPC, one of the continent's
largest providers of broadband Web access, had earlier warned its
customers that download times could suffer if the network is
shut, Total Telecom says.

Separately, the industry paper says Irish operator eTel has
indicated its interest in buying KPNQwest's profitable central
European business and a source close to the unit said at least
two more phone firms and several financial consortia are also
after the assets.

The paper says money raised from fire sales will be paid to
banks.  Bondholders and shareholders are not expected to receive
any.


LYCOS EUROPE: Signs EUR 8.5MM Deal to Provide Access to Overture
----------------------------------------------------------------
Lycos Europe, the European Internet portals, has signed a new
pan-European agreement with the leader in "Pay-for- Performance"
- Internet search, Overture, for a minimum of two years.

Overture will provide its high-quality Pay-for-Performance search
listings to Lycos Europe's search engines Lycos Search and
Fireball. The deal is worth at least EUR 8.5 million for Lycos
Europe.

Under the agreement, Lycos Europe's search results pages will
feature Overture's  Pay-For-Performance search listings under the
heading "Sponsored Links". Two results appear above Lycos
Europe's own search results, three below Lycos' results.

Overture's listings are generated by Overture's advertisers who
bid for placement on keywords relevant to their business.

Overture's 100-person Product Quality Team helps ensure that
search listings delivered to its partners, such as Lycos Europe,
are highly relevant.

The roll-out of the service will start in August 2002 in the
U.K., continuing with Germany and France in December 2002.


KPNQWEST NV: Infonet and KPN Telecom Sign Agreement With KPNQwest
-----------------------------------------------------------------
Infonet Services Corporation, a provider of global communications
services, announced Monday that it has signed an agreement with
KPN Telecom, the Netherlands telecommunications company.

Under the terms of this agreement, Infonet and KPN will work
jointly to provide alternative IP VPN services to KPN Telecom
clients that use the IP VPN services of KPNQwest.

This agreement gives KPN clients the opportunity to transition
onto Infonet's global network in an orderly manner.

With over 10 years of IP VPN leadership in the market and over
2,000 IP VPN clients such as Nestle, Gist Brocades and
Volkswagen, Infonet's MPLS CoS enabled IP VPN capabilities are
currently available in 50 countries throughout Europe, Asia and
the Americas. Infonet's suite of IP VPN services optimizes ROI
for client's investments in enterprise applications.

"We are pleased to partner with KPN to bring our robust global
network solution to their clients who may be affected by the
current uncertainty in the market caused by the bankruptcy of
KPNQwest," said Donald Badoux, Vice-President Sales, Infonet
EMEA. "A joint KPN and Infonet team will offer to migrate clients
and Infonet Netherlands will be the delivery arm for the services
to be provided. Infonet's financial stability and capabilities
throughout Europe will facilitate the migration of these clients,
as well as provide to them future opportunities for technological
advancements and premier levels of customer service."

Infonet Services Corporation is provider of value-added global
communications services, including IP VPNs, for nearly 3,000
multinational enterprises.


UNITED PAN-EUROPE: Annual Meeting Scheduled for June 20
------------------------------------------------------
United Pan-Europe Communications NV ADS filed a PRER14A,
announces that its Annual Meeting will be held on June 20, 2002
at 2:00 p.m. local time in Amsterdam, The Netherlands.

The company's shareholders will vote on whether to grant
authority to the Board of Management to repurchase up to 10% of
the Company's outstanding share capital for a period of 18 months
(until December 20, 2003).


VIATEL INC: Telecoms Network Group Emerges From Chapter 11
----------------------------------------------------------
Viatel Holding (Bermuda) Limited--- www.viatel.com ---, the
builder-operator-owner of a state-of-the-art pan-European network
Monday announced that Viatel, Inc.'s Plan of Reorganization has
become effective.

As previously announced, the Plan received overwhelming approval
from creditors on May 8, 2002 and was confirmed by the United
States Bankruptcy Court for the District of Delaware on May 21,
2002.

Pursuant to the Plan, the unsecured creditors of Viatel, Inc. and
its United States subsidiaries, will receive, on a pro rata
basis, a total of 10,560,000 common shares of Viatel Holding
(Bermuda) Limited, a new holding company created to effectuate
the restructuring transaction.

Viatel, Inc.'s common and preferred stock have been cancelled.
The new common shares of Viatel Holding's will initially be
traded over the counter under the symbol "VTLAV" until Viatel
Bermuda qualifies for listing on the NASD National Market.

Viatel's Chairman and Chief Executive Officer, Michael J.
Mahoney, noted "With the demise of a number of our European
competitors, including 360 Networks, Pangea, Carrier 1 and KPN-
Qwest, and the recent decisions by numerous other competitors to
exit most, if not all, of their European markets, our reemergence
could not have happened at a better time."

"With our debt free balance sheet and core network assets intact,
we are well positioned to provide customers with a safe harbor
during this extremely turbulent time."

Mahoney added, "We wish to thank our customers for their support
during this difficult period and look forward to continuing to
provide them with the highest quality of service. We also wish to
thank our creditors for their vote of confidence and our
employees for their dedication and hard work during these past 13
months".


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


ELEKTRIM SA: Changes Date of Disclosure for Financial Statements
----------------------------------------------------------------
The Management Board of power and telecom conglomerate Elektrim
S.A. announces that there is a change in the date of disclosure
of the annual stand alone (S.A.-R) financial statement of
Elektrim S.A. for 2001 and the annual consolidated (SA-RS)
financial statement of the Capital Group of Elektrim for 2001.

The SA-R and SA-RS annual financial statements will be disclosed
on June 12, 2002.


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


SONG NETWORKS: Signs Deal to Supply SEK 5.4MM in Network Capacity
-----------------------------------------------------------------
Song Networks AB--- www.songnetworks.net ---, a Swedish
subsidiary of Song Networks Holding AB, announced Monday that the
company signed agreements with two international data and telecom
operators.

Worth approximately SEK 5.4 million over one year, these
agreements comprise the supply of network capacity for both
telephony and data traffic.

"The fact that international operators who do not own their own
Nordic network have chosen to purchase capacity from Song, shows
that our backbone fiber and access network is maintaining a high
level of quality. Thanks to competitive prices and a good
capacity to deliver, we won both these deals in competition with
other operators with a network of their own," says Mats Almgren,
Sales Director of Song Networks AB.

The agreement relates to the supply of a wavelength capacity of
2.5 Gbit/s and a fixed SDH connection of 622 Mbit/s in Song
Networks' Nordic fibre-optic broadband network.

The wavelength connection is a transparent point-to-point
connection that can carry all kinds of traffic up to 2.5 Gbit/s.
The SDH connection is redundant (two logical connections) and
primarily intended for telephony.

Contact Information:

Jenny Moquist
Investor Relations Manager
Song Networks AB Song Networks Holding AB
Telephone: +46 8 5631 02 40
Mobile: +46 701 810 219
Email: jenny.moquist@songnetworks.net


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


COLT TELECOM: In GBP 18MM Bond Buyback for GBP9MM Cash Outlay
-------------------------------------------------------------
COLT Telecom Group plc, a leading European provider of business
communication services, said today that it had purchased a
further GBP18 Million of COLT bonds for a cash outlay of GBP9
Million.

The purchases were undertaken by COLT Telecom Finance Limited as
set out below.

COLT Telecom Finance Limited has no intention to sell the notes
it has purchased and arrangements may be made in due course to
cancel such notes.

COLT may purchase additional bonds in the future.

The following bonds have been purchased.

- US$8.5 Million accreted principal amount of our US$314 Million
  12% Senior Discount Notes due December 2006;

- EUR0.5 Million face amount of our EUR76.7 Million 8.875% Senior
  Notes due November 2007;

- EUR4.5 Million face amount of our EUR306.8 Million 7.625%
  Senior Notes due July 2008;

- EUR10.0 Million face amount of our EUR320 Million 7.625% Senior
  Notes due December 2009; and

- EUR4.3 Million accreted principal amount of our EUR368 Million
  2% Senior Convertible Notes due December 2006.


In aggregate COLT has now purchased:

- US$60.8 Million accreted principal amount of our US$314 Million
  12% Senior Discount Notes due December 2006;

- GBP3.0 Million face amount of our GBP50 Million 10.125% Senior
  Notes due November 2007;

- EUR5.0 Million face amount of our EUR76.7 Million 8.875% Senior
  Notes due November 2007;

- EUR47.0 Million face amount of our EUR306.8 Million 7.625%
  Senior Notes due July 2008;

- EUR47.3 Million face amount of our EUR320 Million 7.625% Senior
  Notes due December 2009;

- EUR16.8 Million accreted principal amount of our EUR306.8
  Million 2% Senior Convertible Notes due August 2005;

- EUR84.8 Million accreted principal amount of our EUR295 Million
  2% Senior Convertible Notes due March 2006;

- EUR73.0 Million accreted principal amount of our EUR368 Million
  2% Senior Convertible Notes due December 2006; and

- EUR92.4 Million accreted principal amount of our EUR402.5
  Million 2% Senior Convertible Notes due April 2007.

Contact Information:

John Doherty
Director
Investor Relations
Telephone: +44 20 7390 3681
Email: jdoherty@colt.net


CONSIGNIA: Enters Home Contents Insurance to Maximize Earnings
--------------------------------------------------------------
Loss-making Consignia has teamed up with broker Aon and insurer
Royal & Sun Alliance to offer affordable home contents insurance,
reports The Scotsman.

The heavily indebted postal service has discovered that one in
four British households does not have contents insurance and 70%
of tenants in furnished accommodation do not have cover for their
possessions if they were stolen or destroyed by fire or flooding.
The state-owned mail service claims that Britons spend around
GBP350 million each year replacing items that were not insured.

According to its research, one of the major reasons for the lack
of insurance cover is the high cost of policies and difficult
requirements, says Consignia.  Studies have found out that
policies offer cover for possessions with a minimum value of
GBP15,000.

Consignia's new policies offer cover for just GBP7,000 worth of
possessions for the over-60s age-group, and GBP10,000 for others,
with premiums starting at GBP30 a year, the Scotsman says.  Post
offices will serve as counters for the premiums.

Consignia is expected to bare more than GBP1 billion in losses
tomorrow, with nearly GBP800 million accounting for exceptional
items to cover restructuring.

This venture into insurance business is ostensibly part of the
firm's desire to maximize earnings in still untapped auxiliary
activities.


ELECTRICAL INSULATION: Receivers Sell Business as Going Concern
---------------------------------------------------------------
Electrical Insulation Services Limited T/Apermali Insulators
(In Administration)

Manufacturer of Cast Resin and Insulated Products

The joint administrators, Donald Bailey, Andrew Dick and Gar Lee
are restructuring the business with a view to the survival of the
company and seek potential investors or an outright purchaser for
the ongoing business.

The principal features of the business include:

- Established manufacturer of cast resin and insulated
products for the power industry
- Turover of GBP 2 million, predominantly in the UK
- Low rent site in Gloucester
- Experienced and skilled workforce
- Blue chip customer base

Contact Information:

Geraldine Rigby/Sean Griffiths
Begbies Traynor
Elliot House
151 Deansgate
Manchester, M3 3BP

Telephone: 0616 839 0900
Fax: 0616 832 7436
Email: Manchester@begbies-traynor.com


ENERGIS PLC: Holders Want Debt-Equity Swap, to Junk Present Offer
-----------------------------------------------------------------
Bondholders are threatening to block the bid of venture
capitalists that will reportedly offer less than the amount
earlier expected by Energis Plc, says the Independent.

According to the paper, these creditors are, instead, pressuring
management to choose a debt-for-equity swap in straightening its
finances.  The report says bondholders are against the GBP90
million-buyout offer because it will leave them with close to
nothing.

Citing The Deal recently, Troubled Company Reporter-Europe said
that the company's bonds used to bear a face value of GBP500
million when issued.  They're now valued GBP50 million.

The Independent says a debt-for-equity transaction is favorable
to bondholders because it will leave them in control of the
company.

The venture capitalists, which have joined forces to seal the
deal, are offering to absorb more than GBP650 million of bank
debts, on top of the GBP90 million-offer to the bondholders.

"If it materializes, there's no way bondholders are going to
accept this, we'd rather look to complete the debt-for-equity
swap even it means the business going into administration," a
source told The Observer, in a separate report.

"They [bondholders] are perfectly capable of blocking a venture
capital bid but if they do, they have to come up with a credible
debt-for-equity-swap," another source told the Independent.

"You're bound to get people pushing their own agendas. The
venture capitalists want to get hold of it [Energis] for as
little as possible.  The banks want to make sure their position
is not impaired and bondholders want the best deal for
themselves," the Independent source said.

Apax Partners, Carlyle and Permira, believed to be behind the
buyout plan, are also asking banks to forgive GBP100 million of
loans and continue an ongoing debt facility.  The paper says if
bondholders eventually block the buyout offer, Energis' banks
could send the company into administration.

The company's woes began in January when earnings fell below
agreed levels after a huge decline in prices for wholesale
telecoms capacity.  The auction process was opened February after
the firm said it might breach banking covenants.

Bondholders, who saw the value of their investment drop to less
than 10% of its original value, formed a negotiating group and
approached the company to discuss a debt restructuring.  They
also moved to keep money in the company by agreeing to forego a
GBP13.7 million-coupon payment due March 15, on which the company
had defaulted, The Observer says.

"The bondholders could have 'accelerated' the company's collapse
as the default technically triggered clauses which required
repayment of other debts," the paper says.


FRIARY INTERMEDIATE: Notice of Petition for Capital Reduction
-----------------------------------------------------------
In the High Court of Justice Chancery Division Companies Court

In the matter of Friary Intermediate Limited and in the matter of
the companies act of 1985

Notice is hereby given that a Petition was on May 27, 2002
presented to Her Majesty's Court of Justice for the confirmation
of the reduction of capital of the above-named Company from
GBP200,000,000 to GBP110,000,000

And notice hereby given that the said Petition is directed to be
heard before The Companies Court Registrar at the Royal Courts of
Justice, Strand, London, WC2 2LL on Wednesday June 12, 2002

Any creditor or Shareholder of the said Company desiring to
oppose the making of an Order for the confirmation of the said
reduction of capital should appear at the same time of hearing in
person or by Counsel for that purpose

A copy of the said Petition will be furnished to any person
requiring the same by the undermentioned solicitors on payment of
the regulated charge for the same.

Further information may be obtained by contacting the solicitors
for the above-named Company at:

Slaughter and May (RHL)
One Burnhill Row
London, EC1Y 8YY
Telephone: +44 (0)20 7600 1200
Fax: +44 (0)20 7090 5000


ICI: Chemicals Group Will Sell Security Systems Business
--------------------------------------------------------
ICI, the London-based chemicals group, has agreed to sell its
Security Systems business to Lincolnshire Management, Inc., a
private equity investment firm based in New York, USA.

The sale represents a further step in ICI's strategy of
concentrating on its specialty products and paints businesses.

ICI Security Systems global headquarters are based in Exton,
Pennsylvania, USA, with production facilities in Byron, Georgia,
USA. Its European headquarters are located in Zaventem, Belgium.

The business is a world leader in protecting cash in banks, ATMs,
safes and other applications with proprietary security staining
systems. It has annual sales of about US$30 million and employs
135 people who will transfer to Lincolnshire affiliates.

Completion of the agreement is expected during the summer. The
value of the transaction is less than one per cent of ICI Group
net assets, and ICI will use the proceeds for general corporate
purposes.


LASTMINUTE.COM PLC: Announces Partnership Agreement With LCC24
--------------------------------------------------------------
lastminute.com, the online provider of travel and leisure
solutions, today announces the formation of a strategic
partnership in Germany with LCC24, the newly established online
travel agency for Lufthansa City Center, with a view to creating
the largest online travel agency in Germany.

Effective immediately, lastminute.com will acquire 20% of LCC24
for a consideration of GBP2.4 million, satisfied by the issue of
2,804,136 new shares in lastminute.com at an average price of
GBP0.85 per share.

Highlights of the transaction:

   Lufthansa City Center will strengthen the already established
    position of lastminute.com GmbH with offline and in-store
    marketing in its 530 German franchised travel agencies. This
    will provide access to 4.0 million customers in 300 major
    cities in Germany.

   Lufthansa City Center and lastminute.com will jointly source
    and distribute product covering both the time sensitive
    segment and the full service travel agency making available
    to both companies the advantages of scale and special
    purchases that Lufthansa City Center have negotiated.

   Lufthansa City Center will provide customers of
    lastminute.com GmbH and lcc24.com access to its 530 travel
    agencies and kiosks for the collection of tickets and travel
    wallets.

   lastminute.com will provide and manage the website technology
    for lcc24.com.

   Lufthansa City Center commits to exclusively migrating its
    existing offline business onto the online platform through
    lcc24.com. The turnover for Lufthansa City Center for the
    year to December 31, 2001 was in excess of EUR1.6 billion.

   lastminute.com immediately acquires a 20% shareholding in
    LCC24, with the potential to build a larger position over
    time.

During the next 3 years, lastminute.com's shareholding in LCC24
may increase as part of a framework, dependent on the performance
of lastminute.com GmbH and lcc24.com, designed to strengthen the
relationship between the two companies.

Brent Hoberman and Martha Lane Fox immediately become members of
the Supervisory Board of LCC24.

Application has been made to the UK Listing Authority for the
shares to trade on the London Stock Exchange and to be admitted
to the Official List. Dealings in the shares are expected to
commence on June 12, 2002.

Allan Leighton, Chairman of lastminute.com said: "Lufthansa City
Center provides a superb partner to our German business. The
blend of their offline skills together with our knowledge of the
online world will provide an unbeatable combination for Germany
giving our customers even greater confidence in one of the
largest travel brands in the market."

Brent Hoberman, Chief Executive of lastminute.com said:
"Germany is the largest travel market in Europe and this
partnership ensures that we are extremely well placed to maximise
the potential it presents. We have a great opportunity to grow
our business substantially working with such an excellent and
well established partner."

Hemjo Klein, Chairman of LCC24 said: "We are extremely pleased to
partner with such a progressive and successful online Group as
lastminute.com. We see the German online travel market growing
rapidly in the near future and we are placed in an excellent
position to take advantage of that growth in an ideal
partnership."

Based on the idea of matching supply and demand, lastminute.com
offers consumers last minute opportunities to acquire airline
tickets, hotel rooms, package holidays, entertainment tickets,
restaurant reservations and delivery, specialty services, gifts
and auctions in the U.K., France, Germany, Italy, Sweden, Spain,
The Netherlands, Australia and South Africa.

In January 2002, lastminute.com announced the completion of a
Japanese Joint venture with the site due to go live later the
same year.

Lufthansa City Center is one of the largest independent
international franchised travel agencies, operating principally
in Germany.

The group consists of 730 travel agencies and kiosks across
Europe, with 530 in Germany, specializing in providing travel
requirements for both the independent and business traveler in 39
countries.

Turnover from the group exceeded EUR1.6 billion for the year to
December 31, 2001. Lufthansa City Center's main areas of
operations are Greece, Poland, Italy, Spain and Germany.

Contact Information:

Brent Hoberman - Chief Executive
Martha Lane Fox - Group Managing Director
David Howell - Chief Financial Officer
lastminute.com
Telephone: +44 (0)20 7802 4498

Julian Walker
Citigate Dewe Rogerson
Telephone: +44 (0)20 7638 9571


RAILTRACK PLC: Statement Regarding Contractor Safety Breaches
-------------------------------------------------------------
Railtrack has launched on Monday a full investigation into the
allegations highlighted in the Evening Standard story published
June 10, 2002. Contractor safety breaches will not be tolerated.

Railtrack and the industry as a whole, has worked tremendously
hard to improve the safety and competence of track workers with
the introduction of standard safety training courses, approved
and audited trainers and a "driving licence" type competency card
called "Sentinel".

Contractors, safety trainers and labor suppliers are regularly
audited and breaches of processes or procedures can result in
individuals or entire companies being "struck off" the Railtrack
approved supplier list.

The "Sentinel" system is presently being expanded with the
introduction of a new national, computerized system for the
booking and control of track workers called "Sentinel Staffzone".

The system will ensure all that working hours are not exceeded
and that skills and competencies are valid. Three major
maintenance contractors (Carillion, Amey, Jarvis) and their
suppliers will launch the new system at end of next month.

Railtrack will continue to work with the industry to drive
forward contractor safety initiatives.

                                    ***********

        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, Maria Lourdes Reyes, Jean Claire Dy, Editors.

Copyright 2002.  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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