/raid1/www/Hosts/bankrupt/TCREUR_Public/020814.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, August 14, 2002, Vol. 3, No. 160


                               Headlines


* B E L G I U M *

LERNOUT & HAUSPIE: ScanSoft Will Buy Back USD7.0 MM Shares

* F R A N C E *

ALCATEL: Wins USD27 MM Contracts for Network Expansions in China
ALCATEL: Completes Telera Acquisition
CORSAIR: Unions Will Talk With Nouvelles Frontieres on August 28
VIVENDI UNIVERSAL: Will Announce Q2 and H1 2002 Results on Aug.14

* G E R M A N Y *

HACH AG: Hach Escapes Insolvency as It Receives New Credit Line
KIRCHMEDIA: Sports Rights Managing Director Steps Down

* I R E L A N D *

ELAN: Announces Webcast of AGM on August 19, 2002

* S W E D E N *

SONG NETWORKS: Telenor Will Terminate Song Agreement

* U N I T E D   K I N G D O M *

BNFL: Westinghouse Signs Nuclear Plant Contracts in Korea
ENGLISH & AMERICAN INSURANCE: Increases Scheme Payment to 30%
FILTRONIC PLC: Issues Notice on M&G Investments' 13.2% Interest
JUDY FRENCH: Receivers Sell Apparel Mail-Order Business
MARCONI PLC: Banks Will Discuss Refinancing Plan
MARCONI PLC: Will Expand Telefonica Network With USD3.5MM Deal
NTL INCORPORATED: Turns to Kane Reece for Financial Advice
NTL INC: Court Grants Extension on Lease Decision
TADPOLE TECHNOLOGY: Company Profile
TELECITY: Company Profile



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B E L G I U M
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LERNOUT & HAUSPIE: ScanSoft Will Buy Back USD7.0 MM Shares
----------------------------------------------------------
ScanSoft, Inc., a leading supplier of digital imaging, speech and
language solutions, announces the conclusion of an agreement with
representatives of L&H Holdings USA, Inc. and Lernout & Hauspie
Speech Products N.V. (collectively, L&H) on the orderly
disposition of the approximately 7.4 million shares of ScanSoft's
common stock held by L&H.

These shares were issued as consideration for the Company's
December 2001 acquisition of the speech and language business of
L&H. The terms include:

-- ScanSoft will repurchase shares of its common stock worth
USD7.0 million from
L&H at a share price equal to the average closing price for the
20 trading days following the bankruptcy court's approval of the
agreement, but no less than USD4.79.

-- ScanSoft will facilitate an underwritten public offering of
the remaining L&H shares no later than February 15, 2003.

-- ScanSoft will issue up to 300,000 shares to holders of the
approximately six million shares remaining as consideration for
holding ScanSoft shares for the extended period.

-- ScanSoft will grant L&H observer rights on ScanSoft's board of
directors until the public offering is completed.

The agreement remains subject to the approval of the U.S.
Bankruptcy Court for the District of Delaware.

The USD7.0 million share repurchase will be funded from cash
balances. As of the end of the second quarter, ScanSoft reported
positive operating cash flow and held USD18.3 million in cash.
ScanSoft has said previously that it expects sequentially
increasing operating cash flows in the third and fourth quarter.

"We are pleased to have reached an agreement that will provide
for the orderly disposition of these shares," said Paul Ricci,
chairman and CEO of ScanSoft. "Because we believe ScanSoft's
shares are undervalued, the transaction, as structured, provides
the opportunity to maximize value for our shareholders while
allowing the L&H Estate the continued opportunity to participate
in the Company's growth. The L&H assets continue to perform
beyond our expectations."

On December 12, 2001, ScanSoft announced that it had closed the
acquisition of substantially all the operating and technology
assets of L&H's Speech and Language Technologies business.
Consideration for the transaction comprised USD10 million in
cash, a USD3.5 million note and 7.4 million shares of ScanSoft
stock. The U.S. Bankruptcy Court approved the transaction on
December 11, 2001.

Contact Information:         

Richard Mack
Telephone: 978/977-2175
Email: richard.mack@scansoft.com
       
Tim Green
Sharon Merrill Associates, Inc.
Telephone: 617/542-5300
Email: tgreen@investorrelations.com Belgium


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


ALCATEL: Wins USD27 MM Contracts for Network Expansions in China
----------------------------------------------------------------
Alcatel reveals that it has been awarded, through Alcatel
Shanghai Bell, two separate GSM network expansion contracts worth
over USD27 million by Gansu Mobile andJilin  Mobile,  two
subsidiaries of China Mobile, the second largest mobile operator
in the world.

Under the terms of these two contracts, Alcatel will supply,
install and commission the industry-leading Evolium family of
products, including base stations (BTS), home location register
(HLR), base station controller (BSC), mobile switching center
(MSC), and packet  control unit (PCU) supporting a GPRS network.

This project representing Gansu Mobile's sixth GSM network
expansion will further improve the network's capacity and
reliability. When completed in October 2002, the total capacity
of the Gansu GSM network will support over 2.1million
subscribers. Alcatel  Shanghai  Bell's partnership with Gansu
Mobile dates back to 1996.

In Jilin, an industrial province in China's north-east region,
Alcatel will implement itsseventh GSM network expansion, bringing
the network to a total capacity  of 4.6 million subscribers
covering all the cities and regions of Jilin  province.  

The  partnership  between Alcatel and Jilin Mobile began back in
1995, when Alcatel Shanghai Bell built the Chinese operator's
first GSM network.

Yao Shihong, General Manager of Gansu  Mobile Communication Co.,
Ltd., declared, "We have really benefited from our long-term
partnership with Alcatel Shanghai Bell, and continue to do so.
Its advanced technologies and full attention to service help us
meet all our customers demands for the latest mobile services."

Bai Yufa, General Manager of Jilin  Mobile, added, "We have
enjoyed a long-term  co-operation with Alcatel Shanghai Bell,
which is Jilin Mobile's biggest supplier. We sincerely hope
Alcatel Shanghai Bell will continue to develop  the  most
advanced  technologies  and  products for this on-going win-win
collaboration."

Jean-Herve  Leger, Asia Pacific Vice President of Alcatel's
Mobile Networks activities, also said, "We are very proud of our
customers' continued trust in our products, as proven by their
repeated orders.  They are investing in a  future-proof  product,
as our GSM networks and solutions also serve as platforms for
seamless evolution to next generation mobile networks."

Alcatel Shanghai Bell is the first foreign-invested company
limited by shares in the telecommunications sector  in China,
with Alcatel holding 50%+1 shares and Chinese shareholders
holding the remainder.

The multibillion dollar telecom technology leader delivers end-
to-end telecommunications solutions and high-quality services,
covering the fixed, mobile networking, broadband access,
intelligent optical  networking, multimedia solutions and network
applications.

It also has a key international R&D center with full access to
Alcatel's global technology pool,  developing original technology
for  use  in  China  and export to Alcatel's customers worldwide.

With 6,500 employees, an  advanced manufacturing center, and the
most extensive sales and support network in China,  it  is  the
only company  capable  of meeting the global needs of Chinese
customers.  

For  more information, visit Alcatel Shanghai Bell on
the Internet at http://www.alcatel-sbell.com.cn/.

Alcatel designs, develops and builds innovative and  competitive
communications networks, enabling carriers, service providers
and enterprises to deliver  any  type of  content, such as voice,
data and multimedia, to any type of consumer, anywhere in the
world.

Relying on its leading and comprehensive products and solutions
portfolio, stretching from end-to-end  optical infrastructures,
fixed and mobile networks to broadband access, Alcatel's
customers can focus on optimising their service offerings and
revenue streams. With  sales  of EURO 25 billion in 2001 and
99,000 employees, Alcatel operates  in  more  than  130
countries.  

For more information, visit Alcatel on the Internet:
http://www.alcatel.com.


ALCATEL: Completes Telera Acquisition
-------------------------------------
Alcatel (http://www.alcatel.com)confirms that, after finalizing
all customary closing procedures, the acquisition of Campbell,
California-based Telera Corp. has been completed.

Telera's patented Voice Web software platform uses voice
extensible markup language (VoiceXML) and other open standards to
enable service providers and enterprises to develop advanced
voice applications that transform the telephone into a powerful
tool to access Web-based information.

Under the acquisition, Telera becomes a VoiceXML center of
competency within Genesys, Alcatel's contact center software
business, initially focusing on voice self-service solutions.
Already Genesys is leveraging the Voice Web technology in its
recently announced Genesys Voice Portal, an advanced voice self-
service application for customer contact management. Longer term,
the VoiceXML center of competency will strengthen Alcatel's
strategy to deliver converged voice and data networks.

Prem Uppaluru, previously Telera's chief executive officer, has
been appointed executive vice president, Voice Web Solutions, at
Genesys. Mr. Uppaluru will drive voice self-service initiatives
and products that support both Genesys' and Alcatel's leadership
in communications technology.

"Genesys is focused on delivering customer contact solutions that
enable companies to build long-term, profitable customer
relationships," said Ad Nederlof, chief executive officer at
Genesys. "We believe Telera gives us the ability to offer a new
class of interaction management applications designed to help
companies maximize efficiency of their contact centers while
improving customer service levels."


CORSAIR: Unions Will Talk With Nouvelles Frontieres on August 28
----------------------------------------------------------------
Corsican airline Corsair announced that flight schedules got back
to normal last Saturday after three days of interruption due to a
union strike in protest against the company's restructuring plan,
a report from Les Echos and the Financial Times says.

Last Friday, Corsair union representatives discussed with the
management of Corsair's owner, French travel company Nouvelles
Frontieres, on the latter's plans to cut 170 jobs and withdraw
two aircrafts - a B747 and a B737 - from service, the report
says.

After the meeting, NF chairman Ralf Cortsen said that the
redundancy plan is still open to discussion. He added that he is
prepared to negotiate everything. He also said that the company
will do anything to return to profitability but keeping in mind
its social responsibility, the papers report.

The Corsair talks are set to start at a meeting of the airline's
works council on August 28.


VIVENDI UNIVERSAL: Will Announce Q2 and H1 2002 Results on Aug.14
-----------------------------------------------------------------
Vivendi Universal, a global Media & Communications company, will
hold a conference call to discuss its second quarter and half
year results and 2002 outlook on Wednesday August 14, 2002, at
8:00 a.m. Eastern Time (1:00 p.m. London Time and 2:00 p.m. Paris
time).

This call is being webcast by CCBN and can be accessed at Vivendi
Universal's Investor Relations web site at
http://finance.vivendiuniversal.com

The webcast is also being distributed over CCBN's Investor
Distribution Network to both institutional and individual
investors. Individual investors can listen to the call through
CCBN's individual investor center at www.companyboardroom.com or
by visiting any of the investor sites in CCBN's Individual
Investor Network.

Institutional investors can access the call via CCBN's password-
protected event management site, StreetEvents
(www.streetevents.com).

Vivendi Universal is a consumer-focused, performance-driven and
values-based global media and communications company, positioned
to be the world's preferred creator and provider of
entertainment, education and personalized services to consumers
anywhere, at any time, and across all distribution platforms and
devices.

Combining the rich global and local content of its Music,
Publishing and TV & Film units, the company leverages the
strength of its market-leading brands and products through a
broad array of state-of-the-art interactive distribution channels
and platforms provided by its Telecoms and Internet units.
Vivendi Universal also holds a 63% interest in the world's
leading environmental services company, Vivendi Environnement.


Contact Information:

Vivendi Universal
Investor Relations
Laura Martin
Telephone: +33.1.71.71.10.84
Email: laura.martin@groupvu.com


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


HACH AG: Hach Escapes Insolvency as It Receives New Credit Line
---------------------------------------------------------------
Germna merchandise and corporate gift production company, Hach AG
has eluded insolvency following the approval of its request for a
new credit line, a report from the Frankfurter Allgemeine Zeitung
and Financial Times says.


Hach AG, which is mostly family owned, is set to discuss a
package and recovery measures with banks and other negotiating
partners, the report says.

The German company's office furniture and electrical appliance
divisions have suffered since the acquisition of rival Oppermann
Versand by retail giant Metro in 1997. Its customized gift
division, which is its core business, however is said to remain
fairly stable, the report adds.

The report also discloses that for business year 2001/02, to June
30, turnover fell from EUR204 million to EUR150 million, while
the post-tax result has fallen from a profit of EUR1.9m to a
loss, although exact figures have not been published.

In line with its restructuring measures, the company has now sold
the division active exclusively in trading to Bertelsmann Media
Service, employee figures have been reduced to 340, compared with
around 1,000 two years ago, the report says.


KIRCHMEDIA: Sports Rights Managing Director Steps Down
------------------------------------------------------
Dr. Alexander Liegl, Managing Director Sports Rights of
KirchMedia, will leave the company with immediate effect at his
own request and by way of amicable agreement.

Now that restructuring of the insolvent KirchMedia Group is
meanwhile nearing completion, Dr. Liegl will be devoting himself
to new professional assignments, prior to new investors buying
into the company.

In the course of this restructuring process, KirchMedia is
planning to merge the sectors of sports-rights trading and film-
rights trading under the management of one director. Up to now,
two directors have held separate responsibility for these
activities.

Contact Information:

Hartmut Schultz Kommunikation GmbH
Hartmut Schultz
Telephone: +49 (0)89 99 80 62 20
Mobile: +49 (0) 170 4332 832

KirchMedia GmbH & Co. KGaA
Christine Knoepffler
Sports Communications
Telephone: +49 (0)89 9956-2325


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


ELAN: Announces Webcast of AGM on August 19, 2002
-------------------------------------------------
Elan Corporation, plc (http://www.elan.com)announces that its
annual general meeting (AGM) will be held on August 19, 2002 at
10.30am GMT/5.30am ET in the Burlington Hotel, Dublin 4, Ireland
will be available by webcast.

A Live audio of the AGM will be broadcast over the Internet and
will be available to investors, members of the news media and the
general public.

Elan is focused on the discovery, development, manufacturing,
selling and marketing of novel therapeutic products in neurology,
pain management and autoimmune diseases. Elan shares trade on the
New York, London and Dublin Stock Exchanges.

ELAN reported USD964.6 million in losses in its December 2001
profit and loss statement.  On the same period, the group
reported USD6.8 billion in assets and USD4.3 billion in
liabilities.


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


SONG NETWORKS: Telenor Will Terminate Song Agreement
----------------------------------------------------
Telenor Business Solutions announces that it has terminated the
business combination agreement with Song Networks, and the offer
to participate in a financial restructuring of the company.

"The lack of progress in the negotiations between Song Networks
and its bondholders regarding our agreement and the clear
indication that the bondholders want Song Networks to explore
additional alternatives, has compelled us to take this step,"
said Morten Lundal, CEO of Telenor Business Solutions.

"We still believe in the industrial and financial logic of the
proposed agreement. We will continue to look for financially
sound opportunities that will further strengthen TBS' Nordic
presence."


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


BNFL: Westinghouse Signs Nuclear Plant Contracts in Korea
---------------------------------------------------------
Westinghouse Electric Company, a wholly owned subsidiary of BNFL,
announces that it has signed contracts valued in excess of USD350
million (GBP230 million) to provide components, instrumentation
and control equipment and technical and engineering support
services to four new nuclear power plants to be built in the
Republic of Korea.

The plants are Korea Standard Nuclear Plant Plus design, based on
the proven Westinghouse System 80 technology design. They have a
total cumulative construction value in excess of USD6 billion
(GBP4 billion).

The Westinghouse contracts are with DOOSAN Heavy Industries and
Construction Company, Inc., and the Korea Power Engineering
Company, Inc.

The plants will be owned and operated by the Korea Hydro &
Nuclear Power Company (KHNP), a subsidiary of Korea Electric
Power Corporation. As of the end of 2001, KHNP operated 16
nuclear power plants with an availability factor of 92%.

The role of Korea Hydro & Nuclear Power Company on the new
projects is overall project management of Licensing, Procurement
and Construction, as well as Start-up and Plant Operations.

Commenting on the contracts, Westinghouse President and CEO Steve
Tritch lauded the Republic of Korea's leadership position in the
new plant segment of the worldwide commercial nuclear power
industry: "The Republic of Korea's forward-looking program will
help ensure energy independence for years to come," he said. "It
also further proves the viability of nuclear power as an
economically competitive energy source that produces no carbon
emissions."

For Westinghouse, these contracts solidify the company's position
as the leading supplier of new plant technology, said Jim Fici,
senior vice president of Westinghouse Nuclear Plant Projects:
"Westinghouse supplied the first nuclear steam supply system to
South Korea in the late 1970s. Since then, we have provided
technology and equipment to 13 additional nuclear plants there,
including three currently under construction," he said.

In making the announcement, Westinghouse said the contracts would
provide work at a number of Westinghouse locations in the US,
including:

Windsor, Connecticut-project management and engineering
Newington, New Hampshire-component manufacturing
Monroeville/Plum, Pennsylvania-engineering and equipment
manufacture
New Britain, Connecticut - equipment manufacture

The Shin-Kori 1 and 2 plants and the Shin-Wolsong 1 and 2 plants
will be located in Pusan Metropolitan City and Kyungju-City
respectively. Work will begin almost immediately and will run to
2009 for Shin-Kori and 2010 for Shin-Wolsong.

Westinghouse Electric Company offers a wide range of nuclear
plant products and services to utilities around the world,
including fuel, spent fuel management, service and maintenance,
nuclear automation, and advanced nuclear plant designs.
Westinghouse supplied the world's first commercial pressurized
water reactor nuclear power plant in 1957 and has designed the
world's largest installed base of operating nuclear power plants.
Today, approximately one-half of the world's more than 430
operating plants are based on Westinghouse designs.

BNFL is a leading specialist in nuclear technology and a global
supplier of nuclear fuel, products and services. Currently,
around a third of BNFL's sales comes from the Westinghouse
business which manufactures fuel and services nuclear reactors
around the world.

Shin-Kori Nuclear Units 1&2, Hyoam-Ri, Changan-Up, Kijang-Gun,
Pusan Metropolitan City, Republic of Korea

Shin-Wolsong Nuclear Units 1&2, Bonggil-Ri, Yangbuk-Myun,
Kyungju-City, Republic of Korea

Scope of work to be performed by Westinghouse:

Contract with DHICO - Supply equipment for the NSSS (Reactor
Coolant Pumps & Motors, Reactor Vessel Internals, Control Element
Drive Mechanisms, Instrumentation and Control Systems, etc.) and
provide Technical Support Services

Contract with KOPEC - Provide Engineering Support Services for
NSSS System Design


CONSIGNIA: Post Office Company Eludes Fine From Regulator
---------------------------------------------------------
Consignia eluded a GBP8 million fine on Monday following mail
regulator Postcomm's statement that the postal group had breached
terms of its license, a report from the Telegraph says.

Postcomm decided that forcing Consignia to pay the fine would be
counter-productive and found that woking out a compensation
scheme for customers would be a more feasible plan, the paper
says.

The spokesman from Postcomm added that despite its major effort
to improve serve quality and it meeting some of its targets,
Consignia still has missed a lot. Postcomm believes that in terms
of its business services, Consignia had not tried enough.

The spokesman added that the services were first and second-class
pre-paid response envelopes and that Consignia agreed with
Postcomm's assessment of the situation "in as much as we have
said that we need to improve and want to improve," the paper
says.

As for the compensation scheme, the spokesman said that customers
already get compensation from the post office if they can prove
that they have posted the items in question, the daily adds.

Consignia, which is planning to change its name again to Royal
Mail Group, has been set stringent targets by the mail regulator
under the terms of a new system to introduce competition in its
monopoly area. Postcomm has the power to fine Consignia up to
10pc of its turnover. However, the business is already in
financial difficulties.


ENGLISH & AMERICAN INSURANCE: Increases Scheme Payment to 30%
------------------------------------------------------------
English & American Insurance Company Ltd.

Following consultation with the Creditors' Committee, the Joint
Scheme Administrators of English & American Insurance company
Limited (EAIC), Tony McMahon and Tom Riddell, Partners in the
Insurance Solutions practice of KPMG Corporate Recovery, have
increased the Scheme Payment Percentage to creditors from 25 to
30 % as at June 1, 2002.

The first distribution at the new rate was paid to creditors with
Established Scheme Liabilities on July 5, 2002. Following this
distribution, the total amounts paid to creditors exceed USD51
million.

The Scheme Administrators estimate that the ultimate Scheme
Payment Percentage may be in the range of 40 to 44%. However, at
this stage EAIC faces continuing uncertainty regarding its
exposure to APH claims and to reinsurance bad debt and therefore
estimates of the final Scheme Payment Percentage cannot be given
with any degree of certainty.

As at March 31, 2002, EAIC has agreed claims of USD325 million,
of which USD 180 million were Established Scheme Liabilities.
Over the past two years, the Scheme Administrators have made
substantial progress in accelerating the agreement of claims and
payment of dividends to Scheme creditors. At the Same time, the
Scheme Administrators continue to pursue collections from EAIC's
reinsurers and since the inception of the Scheme have collected
over USD 174 million in reinsurance recoveries.

Tony McMahon, Joint Acheme Administrator commented:

"The progress on EAIC to date has been very encouraging as
evidenced by the amount that has now been paid out to creditors.
We are working hard towards an early closure of the estate within
the next five years."

A meeting of EAIC creditors have been convened for August 27,
2002 at 10:30 am to KPMG LLP's offices at 1-2 Dorset Rise,
London, EC4Y 8AE

Creditors should call the EAIC helpline: Telephone +44 (0)1452
782600 if they have any queries regarding the Scheme


FILTRONIC PLC: Issues Notice on M&G Investments' 13.2% Interest
---------------------------------------------------------------
Pursuant to Section 198 of the Companies Act, Filtronics has
received notification from M & G Investments Limited in respect
of Prudential plc that on August 8, 2002, the total notification
interest of Prudential plc in the ordinary shares of the Company
is 9,795,708 being 13.22% of the issued share capital.

Filtronic plc designs and manufactures a broad range of
customised RF, microwave and millimeter wave cellular and
broadband components and subsystems.

The company's products are used in wireless communication
infrastructure equipment, cellular handsets, electronic defence
systems, and cable communication systems. These products filter,
amplify and transmit and receive RF signals.


JUDY FRENCH: Receivers Sell Apparel Mail-Order Business
-------------------------------------------------------
The Joint Administrators, Andrew Thompson & Martin Shaw, offer
for sale the combined business and assets of Judy French Limited
and Wealth of Nations World-Wide Limited.

Principal features of the business include:
   
    - Retail customer base in excess of 50,000 accounts
    - Combined annual turnover of approximately GBP 3.6 million
    - Autumn collection and catalogue available for launch
    - Leasehold premises near Tonbridge, Kent
    - Management team experienced in design & manufacturing
    - Mail order call center & distribution depot

Contact Information:
Martin Shaw or Bill Brandon
TSA (Thompson Shaw Associates)
100 Wakefield Road, Lepton
Huddersfield
HD8 0DL
Telephone: 01484 607444
Facsimile: 01484 608776


LASTMINUTE.COM: Directors Sells Total of 12 MM Shares
-----------------------------------------------------
Directors of Cheetah Investments and Global Retail Partners,
venture capital funds that invested on Lastminute.com before its
stock market flotation, sold a total 12 million of their shares
in the company, the Independent says.

Both Cheetah's Laurent Leffy, who banked GBP7.36 million after
selling 8 million shares, and Global's Linda Levinson, who made
GBP3.68 million from selling 4 million shares, sat on
lastminute's board of directors.

Lastminute's managing director Martha Lane Fox says that there
was nothing "dramatic" about the sales saying that the companies
"had both held on to shares in a public company far longer than a
venture capitalist normally would," the daily adds.

Cheetah's Mr Leffy still holds 8.55% of lastminute's stock, while
Ms Levinson has 4.5%. Mr. Leffy still remains as on of the
company's directors while Ms Levinson is set to step down later
this August. Both are seen to be long-term shareholders of
Lastminute, the paper says.

Lastminute, which saw its shares slip 1.5p to 94p, is seen to
turn its first profit in 2003. Last week it narrowed its losses
before one-off items and tax in the three months to 30 June to
EUR4 million from EUR9.3 million, the Independent says.


MARCONI PLC: Banks Will Discuss Refinancing Plan
------------------------------------------------
Marconi Plc's lenders, which it owes GBP2.3 billion will soon
convene to discuss a refinancing plan, a report from the
Financial Times says.

The group of lenders, which include Barclays and HSBC are set to
present the result of the three-month negotiations with Marconi
and its bondholders to the remaining banks involved in a 31-
strong syndicate, the paper says.

The company's bondholders are set to convene later this week.
Marconi owes its bondholders a total of GBP1.7 billion.

It is said that the banks' reaction could determine Marconi's
future. The banks views are divided on the matter. Most of the 31
banks are believed to be prepared to sign up to a deal. But some
are seen to believe that by allowing Marconi to slide into
administration, their interests will be preserved because they
would be provided with insurance payments triggered by credit
default policies, the paper adds.

The restructuring plan for Marconi will have three main elements:
a debt-for-equity swap, which the group said would lead to a
"substantial" dilution of existing shareholder equity; the
distribution of the group's cash; and the retention of some debt.

The company is seen to distribute close to GBP900 million of its
cash pile to creditors but keep about GBP500 million for working
capital requirements. At the end of June the group had GBO1
billion of cash and has generated another GBP385 million from the
sale of its Italian communications business this month.

The group is also expected to emerge from the refinancing with
residual net debt of about GBP400 million, the paper says.

The agreement faces a number of hurdles, however, as banks must
approve the package. Collectively, they may have to write off
GBP1bn in debt.


MARCONI PLC: Will Expand Telefonica Network With USD3.5MM Deal
--------------------------------------------------------------
Marconi announces a USD3.5 million contract to support the
network growth plans of Telefonica Moviles Mexico, a subsidiary
of Telefonica, the largest telecom operator in Latin America.

The solution, comprised of Marconi's market-leading synchronous
digital hierarchy (SDH) optical multiplexers and power platforms,
is being deployed to support the expected subscriber growth for
Telefonica Moviles Mexico in 2002.

Marconi has been an incumbent supplier to Telefonica for four
years and during that time, Telefonica has purchased 100% of
their optical and power equipment from Marconi.

"In Marconi, we have found a reliable supplier who can provide
numerous products in support of our network expansion plans",
said Eduardo Martinelli of Telefonica Moviles Mexico. "We are
confident that Marconi will be here to support our needs as our
network grows and our subscriber base increases. It is much more
efficient for us when one supplier can provide numerous elements
of an overall solution."

For the agreement announced with Telefonica today, Marconi will
provide its MSH41c, SDH - STM4 optical multiplexers and its
Vortex power systems, which will power the SDH equipment that
carries the network traffic. Marconi is recognized as one of the
world's leading providers of SDH solutions and telecommunications
power systems.

"Marconi has built an important relationship as a trusted
supplier to Telefonica over the years," said Armando Cuesta,
executive vice president for Marconi in Latin America. "To
provide the best solution for Telefonica, Marconi acted as a
communications consultant, taking into account their growth plans
and their overall vision for their business."

Marconi plc is a global telecommunications equipment and
solutions company headquartered in London. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services. The company's aim is to help fixed and
mobile telecommunications operators worldwide reduce costs and
increase revenues.

The company's customer base includes many of the world's largest
telecommunications operators. The company is listed on the London
Stock Exchange under the symbol MONI.


NTL INCORPORATED: Turns to Kane Reece for Financial Advice
----------------------------------------------------------
NTL Incorporated and its debtor-affiliates sought and obtained
approval from the U.S. Bankruptcy Court for the Southern District
of New York to employ Kane Reece Associates, Inc. as financial
advisors.

Kane Reece will provide:

      a) Assistance in the preparation and review of reports or
         filings as required by the Bankruptcy Court or the
         Office of the United States Trustee, including mailing
         matrix and monthly operating reports;

      b) Review of and assistance in the preparation of financial
         information for distribution to creditors and other
         parties-in-interest, including analyses of cash receipts
         and disbursements, financial statement items, and
         proposed transactions for which Bankruptcy Court
         approval is sought;

      c) Assistance with analysis, tracking, and reporting
         regarding cash collateral and any debtor-in-possession
         financing arrangements and budgets;

      d) Review and critique of the Debtor's financial
         projections and assumptions;

      e) Assistance in the preparation of the liquidation
         analysis for inclusion in the Debtors' disclosure
         statement;

      f) Assistance in preparing documents necessary for
         confirmation of the Plan, including financial and other
         information contained in the plan of reorganization and
         disclosure statement;

      g) Advice and assistance to the Debtor in negotiations and
         meetings with bank lenders, creditors, and any official
         or informal committees;

      h) Other functions as requested by the Debtor or its
         counsel to assist the Debtor in its business and
         reorganization.

The Debtors will pay Kane Reece a minimum of USD100,000 to a
maximum of USD110,000, exclusive of expenses and court
preparation and appearances.

NTL is the largest cable television operator and a leading
provider of business and broadcast services in the UK, and the
owner of 100% of Cablecom in Switzerland and Cablelink in
Ireland. Kayalyn A. Marafioti, Esq., Jay M. Goffman, Esq., and
Lawrence V. Gelber, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP represent the Debtors in their U.S. Bankruptcy proceedings
and Jeremy M. Walsh, Esq. at Travers Smith Braithwaite serves as
U.K. Counsel. At December 31, 2001, the Company's books and
records reflected, on a GAAP basis, USD16,834,200,000 in total
assets and USD23,377,600,000 in liabilities.


NTL INC: Court Grants Extension on Lease Decision
-------------------------------------------------
By order of the U.S. Bankruptcy Court for the Southern District
of New York, NTL Incorporated and its debtor-affiliates obtained
an extension of their lease decision period.  The Court gives the
Debtors until the date of entry of an order confirming a plan of
reorganization in the Debtors' cases to determine whether to
assume, assume and assign or reject unexpired nonresidential real
property leases.

NTL is the largest cable television operator and a leading
provider of business and broadcast services in the UK, and the
owner of 100% of Cablecom in Switzerland and Cablelink in
Ireland. Kayalyn A. Marafioti, Esq., Jay M. Goffman, Esq., and
Lawrence V. Gelber, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP represent the Debtors in their U.S. Bankruptcy proceedings
and Jeremy M. Walsh, Esq. at Travers Smith Braithwaite serves as
U.K. Counsel. At December 31, 2001, the Company's books and
records reflected, on a GAAP basis, USD16,834,200,000 in total
assets and USD23,377,600,000 in liabilities.


TADPOLE TECHNOLOGY: Company Profile
-----------------------------------
Name:              Tadpole Technology PLC
                    Science Park, Milton Road
                    Cambridge, CB4 0TP  UK

Telephone:         +44 1223 428200
Facsimile:         +44 1223 428201
Website:           http://www.tadpole.com

SIC:               Hardware Manufacturing
Employees:         177
Net Loss:          GBP7.78 million /USD11.9 million (2001)   
Total Assets:      GBP21.78 million /USD33.2 million (2001)   
Total Liabilities: GBP4.79 /USD7.3 million (2001)   

Type of Business:  Tadpole Technology PLC designs, develops,
manufactures and sells computer hardware and software. The group
operates three divisions, namely: Tadpole-RDI, Tadpole-Cartesia
and Endeavors Technology.

Trigger Event: The company has been recording losses in four
years. In 1999, the company posted a GBP3.15 million deficit and
a GBP1.47 million loss in 2000. In 2001, its losses rose to
GBP7.8 million. The company's unaudited six-month interim results
ending March 31, 2002 revealed another loss of GBP 3.3 million.

The company warned its shareholders that it expect no substantial
improvement in market conditions before the second half of this
financial year and market conditions will remain tough. The
company further anticipates a loss for the year ended September
30, 2002.

Chief Executive Officer: J. Bernard Hulme
Group Finance Director:  Keith Bigsby
Chief Finance Officer:   Tadpole-Cartesia
Executive Director:      Graham Brown

Bankers:                Barclays Bank PLC
Financial Advisers:     Beeson Gregory
Stockbrokers:           Beeson Gregory
Auditors:               Ernst & Young auditors
Law Firms:              Denton Wilde Sapte
Financial PR Advisers:  Patcom Media Relations


TELECITY: Company Profile
-------------------------
Name:      TeleCity PLC
            Bellerive House
            3 Muirfield Crescent
            London E14 9SZ
            United Kingdom

Telephone: (020) 7512 3500
Facsimile: (020) 7513 2819    
Website:  http://www.telecity.net

SIC:  Internet Infrastructure and Service Provider   
Employees:  300
Net Loss: GBP19.9 million /USD30.4 million (Jun. 2002)    
Total Assets:  GBP 98.9 million /USD151 million (2001)
Total Liabilities: GBP22.5 million/USD34.3 million (2001)

Type of Business:

TeleCity plc provides Internet infrastructure facilities and
associated services. Through its Internet exchanges, it provides
colocation, systems engineering and additional services to a
range of Internet and telecommunications businesses. Services
include maintenance, monitoring, procurement and installation,
storage and back-ups, and integrated hosting.

Trigger Event: The company has been loss-making for four years.
In 1999, TeleCity incurred a pre-tax loss of GBP3.4 million. For
the year 2000, the group posted GBP12.7 million in pre tax loss.
In 2001, the company posted another pre-tax deficit of GBP35.4
million.

In August 2001, TeleCity warned to file for insolvency after
revealing losses in its interim results.

Chief Executive Officer: Rick Hudon
Operations Director:     Trevor Wadcock
Finance Director:        Martyn Ellis

Major Shareholders:      3i Group PLC 48.71%
                          M & G Group PLC 15.82%
                          Schroder Inv Mgmt Ltd 15.60%
                          Mike Kelly 9.24%

Bankers:                 HBOS PLC
Financial Advisers:      Goldman Sachs
Stockbrokers:            Goldman Sachs Equity Securities (UK)
Auditors:                PricewaterhouseCoopers
Law Firms:               Eversheds
Financial PR Advisers:   Citigate Dewe Rogerson
                    
Total Shares in Issue:   200.60 million 0.1p ordinary shares

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


       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 and Jean Claire Dy,
Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2754.

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