/raid1/www/Hosts/bankrupt/TCREUR_Public/020911.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, September 11, 2002, Vol. 3, No. 180


                              Headlines

* F R A N C E *

ALCATEL: Creates Joint Venture With FiberHome
ALCATEL: Alcatel Optronics Significantly Reduces Equipment Costs
COMPLETEL: Dutch Court Approves Completel Akkoord Plan
COMPLETEL Announces Issuance of Warrants
FRANCE TELECOM: Partners With Esterel for Embedded System Designs
INTEGRA: Court Subjects Integra to Compulsory Administration
VIVENDI: To Negotiate With Vodafone Over Cegetel Stake
VIVENDI: Asset Sale Worries French Authorities
VIVENDI: Ministers Want to Keep Publishing Assets "French"

* G E R M A N Y *

BABCOCK: To Maintain Service Operation as Core Activity
DEUTSCHE TELEKOM: Management Will Forgo Salary Hike to Cut Costs
KIRCHMEDIA: Extends Deadline of Binding Bids for Assets
INTERSHOP COMMUNICATIONS: Launches Web Site for Employee Orders
MOBILCOM: Schmid Fixes Share Offer at EUR11 to EUR17

* G R E E C E *

OLYMPIC AIRWAYS: Invitation for Tenders

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

LYCOS EUROPE: Extends Agreement With Espotting
VERSATEL TELECOM: Resumes Trading

* P O L A N D *

ELEKTRIM: Management Board to Resume Discussion With Bondholders
ELEKTRIM: Bondholders Offer EUR350 Million for Telecom Assets

* R U S S I A *

RUSSIAN BANKS: S&P Upgrades Long-Term Counterparty Credit Ratings

* S P A I N *

UNION FENOSA: Hires Goldman Sachs to Sell Gas Business

* S W E D E N *

LM ERICSSON: Dobson Cellular Selects Ericsson for Network
LM ERICSSON: Recalculates Exercise Price for Convertibles

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

SWISSAIR: Sairgroup Signs up Allen & Overy as Bankruptcy Counsel

* U N I T E D   K I N G D O M *

CORDIANT COMMUNICATIONS: Alan Page Considers Break-up Bid
CORUS: Develops Exit Plan for CSN Merger Deal
GLOBAL CROSSING: Wants Court to Rule Hindery Pact Non-Executory
INVENSYS: Announces Formal Notice for Specialist Securities
INVENSYS PLC: Appoints New Senior Vice President of Finance
WORLDCOM INC: Signs up Howrey Simon as Special Insurance Counsel
WORLDCOM INC: DebtTraders Maintains "Strong Buy" Recommendation


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


ALCATEL: Creates Joint Venture With FiberHome
---------------------------------------------
Alcatel (http://www.alcatel.com),the world leader in optical  
networking, and FiberHome Telecommunication Technologies of
Hubei, China announced the signature of a Memorandum of
Understanding (MoU) for the creation of a joint venture to
manufacture and sell Alcatel's complete optical fiber product
portfolio in China, together with FiberHome's optical cabling
portfolio.  The new joint venture will become one of the leading
optical fiber suppliers in China, which is one of the fastest
growing optical fiber markets and is expected to almost double in
size by 2006.

Located in the Hubei Province, in the central part of China, the
new joint venture between Alcatel's optical fiber activity and
FiberHome will take the form of a closed joint stock company,
with the two companies holding 50/50% share. With production of
the new fibers slated for early 2003, the joint venture is well-
positioned to satisfy the increasing demand in China, which is
expected to become one of the top three global markets for
optical fiber.

Alcatel will allow the joint venture to gain advanced
technological expertise in the entire process of manufacturing
optical fiber and preforms, which is based on Alcatel's
proprietary process.  Furthermore, the complete range of
Alcatel's optical fiber products will be made available to the
Joint Venture, including a range of specialty fibers.

Based on the ongoing needs of the Chinese market, the joint
venture will have access to any new Alcatel optical fiber and
cable products, as well as enhancements to the fiber
manufacturing process. FiberHome will contribute land and
building resources to the joint venture, including their optical
cable plant and cabling expertise.

The joint venture will establish its own specialized sales force
to develop the business in China and other parts of Southeast
Asia. This new entity can also leverage the sales infrastructure
from Alcatel's local entity, Alcatel Shanghai Bell, and as a
result, will be able to extend and optimize its channels to
market, as well as offer bundled optical solutions to customers.

FiberHome is a listed company held by Wuhan Research Institute,
the institution representing the highest level of optical
technology in China. As one of the leading optical cable
suppliers, FiberHome has already established strong relationships
with key Chinese operators, which will be a big asset to the new
joint venture.

"We choose to partner with Alcatel because Alcatel is not only
the world leader in optics, but also has one of the most
technologically advanced and most cost effective optical fiber
production processes in the world.  We can also leverage its
strong international base and quality control process which is
important for the success of the joint venture," said Zhu
Minghua, vice president of FiberHome. "The joint venture  is a
combination of local and  international  advantages,  and  is  
well  positioned  to  provide the best-in-class optical fiber
solutions to customers."

"The proposed joint venture is another step in Alcatel's strategy
to strengthen its position in China's market and is a natural
extension of the long-term, working relationship between Alcatel
and FiberHome ", stated Jacques Blanc, president of Alcatel's
optical fiber activities. "A key element of the agreement is
technology transfer, which confirms Alcatel's strong commitment
to the booming optical fiber market in China, and our goal to
become one of the leading optical fiber and cable suppliers in
this market."

According to leading telecom market research firm RHK, Alcatel
was the 2001 world leader in global optical transport -
encompassing terrestrial and submarine applications  - with 17%
market share, in terrestrial optical transport with 14.2% market
share and in submarine optical transport with 41% market share,
an unprecedented achievement in the telecom industry.


ALCATEL: Alcatel Optronics Significantly Reduces Equipment Costs
----------------------------------------------------------------
Alcatel Optronics highlighted hybrid technology and its benefits
during the European Conference on Optical Communication (ECOC)
held in Copenhagen.  Two complex optical functions, commonly used
in line terminals or optical add drop multiplexing  (OADM) nodes
of WDM systems, are the targets of this first launch: a
transparent variable optical combiner and an integrated amplified
demultiplexer. They result from the integration of planar    
passive and semi-conductor active technologies with micro-opto-
electro-mechanical technology.  Alcatel Optronics now offers to
the   telecom industry revolutionary hybrid solutions, the  keys  
to substantially reducing system costs.

To meet customer demand for cost and size savings, an ever-
increasing number of functions previously implanted into optical
boards will now be integrated within highly compact hybrid
modules. At ECOC, Alcatel Optronics showcases two new hybrid
modules used in WDM transmission:
     (i) On the transmitter side, an 8-channel variable
transparent optical combiner monitors and adjusts 8 different,
high bit-rate channels before ultimately combining them. Compact,
easy to install and use, this hybrid combiner integrates onto a
Silica on Silicon (SiO2/Si) platform 41 functions such as tap
couplers, MOEM-based variable optical attenuators (VOAs),
monitoring photodiodes and a passive combiner, offering
transparency to wavelength and wavelength spacing.
     (ii) On the receiver side, an advanced WDM integrated
amplified demultiplexer allows the amplification and extraction
of 8 channels at 10 Gbit/s with 50 GHz wavelength spacing. It
combines an Indium Phosphide (InP) semiconductor optical
amplifier (SOA) chip with arrayed waveguide grating (AWG) on a
single hybrid SiO2/Si platform, which gives rise to an ultra
compact amplified demultiplexing function.

"These two hybrid modules demonstrate and confirm our strategy in
hybrid integration," explained Philippe Bregi, Chief Operating
Officer of Alcatel Optronics.  "We have always championed
integration as the only solution for cost and size  eduction.   
New technologies provide the roadmap to cut costs. This directly
impacts not only the component world, but more importantly, the
system and operator domains.  Hybrid modules are the gateway to
effective cost/performance/density solutions for their networks
of tomorrow."

Hybrid solutions complement Alcatel  Optronics'  current  product
offer, taking  advantage of its vertical integration, from
optical chip to highly integrated  optical sub-systems.  
Tomorrow, standardized and integrated products for metro and long
haul applications, such as 2.5 and 10 Gbit/s optical interfaces,
will benefit from this strategy of hybrid integration.

Alcatel Optronics designs, manufactures and sells high
performance optical components, modules and integrated sub-
systems for use in terrestrial and submarine optical
telecommunications networks. Operating state-of-the-art
manufacturing plants in North America and Europe, Alcatel
Optronics is a leading supplier of DWDM lasers, photodetectors,
optical amplifiers, high-speed interface modules and key passive
devices such as arrayed waveguide  multiplexers  and  Fiber  
Bragg  Grating  filters.  It also has experience in integrating
active and passive components and modules into sub-systems. The
Optronics Division is part of Alcatel's Optics Group which
comprises Alcatel's world-leading activities in optical
networking, including submarine and terrestrial transmission
systems, fiber optics and optical components.


COMPLETEL: Dutch Court Approves Completel Akkoord Plan
-------------------------------------------------------
Completel Europe N.V. announced that the Dutch bankruptcy court
overseeing the suspension of payments has today confirmed the
Akkoord composition plan proposed by Completel. This decision
will become final and conclusive on September 13 (0.00 hrs CET),
after a formal appeals period of eight days.

Completel Europe NV also announced that it has secured equity
commitments for around Euro 44 million in new investment versus
Euro 39.9 million previously announced. Completel anticipates
that the equity raised through its recapitalization process will
more than cover its previously announced funding gap of Euro 30
million, thus fully funding its operations through cash flow
breakeven.

Jerome de Vitry, Completel Chief Executive Officer, commented:
"The closing of our recapitalization will occur by the end of
September. Thereafter, Completel will emerge as an even stronger
competitor serving the French market. We expect to have almost no
debt and to be fully-funded to achieve cash flow breakeven."

Completel Europe NV (ParisBourse: CTL).

Completel is a facilities-based provider of fiber optic local
access telecommunications and Internet services to business end-
users, carriers and ISPs in France.

This press release does not constitute an offer of any securities
for sale.

CONTACT:  COMPLETEL EUROPE N.V.
          Catherine Blanchet, Director of Strategic Planning
                  and Investor Relations of Completel
          Phone: +33-1-72-92-20-32
          E-mail: ir@completel.fr
          Home Page: http://www.completel.com



COMPLETEL Announces Issuance of Warrants
----------------------------------------
CompleTel Europe N.V. announces the following information
regarding an upcoming issuance of its warrants and 670-to-one
reverse split of each of its Ordinary shares.

The Warrants will be issued to existing holders of CompleTel
Europe's Ordinary shares as of record at 9:00 a.m. (Paris time)
on September 13, 2002.

On this date, CompleTel Europe will issue Warrants to subscribe
to an aggregate of 218,941,260 of its Ordinary shares (nominal
value euro 0.10 per share), or 4.012 Ordinary shares for each
Ordinary share outstanding. The company's three largest
shareholders and certain of its directors and senior employees,
holding 102,847,481 Ordinary shares in aggregate, have waived
their rights to be granted or to exercise Warrants. After giving
effect to CompleTel Europe's 670-to-one reverse share split on
September 18, 2002, together with the reduction of the nominal
value of its Ordinary shares from euro 0.10 to euro 0.04 per
share, the Warrants will entitle holders to subscribe to an
aggregate of 326,778 Ordinary shares, or 0.005988 Ordinary shares
per Warrant. Warrants will only be exercisable for the receipt of
a whole number of Ordinary shares.

After giving effect to the reverse share split, 167 Warrants will
be required to subscribe to one Ordinary share at a price of euro
10.05. The Warrants are to be exercisable during the period
commencing at 9:00 a.m. (Paris time) on December 15, 2002 and
ending at 5:00 p.m. (Paris time) on the fifteenth day after the
publication of CompleTel Europe's audited annual financial
statements for 2002.

This press release does not constitute an offer of any securities
for sale.

Completel Europe NV (ParisBourse: CTL).

Completel is a facilities-based provider of fiber optic local
access telecommunications and Internet services to business end-
users, carriers and ISPs in France.

CONTACT:  COMPLETEL EUROPE N.V.
          Tour Egee, 9-11 allee de l'Arche,
          92671 Courbevoie Cedex, FRANCE

          Completel Europe N.V.,
          The Netherlands
          Phone: +31-10-43-00-844; or
          
          Catherine Blanchet, Director of Strategic Planning and      
                              Investor Relations
          Phone: +33-1-72-92-20-32
          E-mail: ir@completel.fr
          Home Page: http://www.completel.com


FRANCE TELECOM: Partners With Esterel for Embedded System Designs
-----------------------------------------------------------------
Esterel Technologies, a global provider of design solutions for
verification-critical systems, announced its partnership with
France Telecom R&D.

Esterel Technologies has integrated the France Telecom R&D Fast-C
(SAXO-RT) compiler into their Esterel Studio product.

The integrated Esterel Studio/SAXO-RT solution provides
developers of embedded telecom applications with seamless
development flow from specification to embedded C code. The
compact and portable Fast-C code generated by this joint solution
is easy to integrate into complex and constrained telecom device
applications, substantially reducing software debug time.

"Embedded software developers need to be able to put their effort
into pure design issues instead of spending time modifying the
code. They need to rely on efficient automatically generated code
that economizes resources and supports maintenance activities
efficiently. The Esterel language and Esterel Studio have proven
their ability to produce real-time control software embedded in
small communication devices such as PDAs and smart phones. France
Telecom R&D has developed its own Esterel compiler, SAXO-RT, for
embedded targets," said Jacques Pulou, a technical manager at
France Telecom R&D, Grenoble.

"Tests show that Fast-C code is at least 30 percent faster than
other optimized generated code," said Eric Bantegnie, president
and CEO of Esterel Technologies. "Our methodologies are deployed
in a number of industries such as chip design for the wireless
industry and avionics that require real-time control systems. We
are pleased to be partnering with France Telecom for development
of embedded systems in telecommunications."

Esterel Technologies provides electronic system and embedded
software designers with methodologies and tools that improve
their productivity and remove the barriers between system
specification, implementation and validation. The company's
products automate costly and time-consuming coding and validation
work through executable specification, intelligent test suite
generation and automatic code generation. Esterel Technologies is
an international company with offices in France, Germany, U.K.
and the United States.

France Telecom R&D teams are at the origin of about 70 percent of
the group's products and services. With close to 3,700
researchers and engineers at 11 research centers on three
continents, France Telecom R&D brings France Telecom powerful
competitive advantages. Its mission is to anticipate
technological advances and changes in usage, drive innovation to
maximize the technological benefits for customers and explore new
sources of growth to consolidate the Group's foundations for
sustainable development. Few global carriers enjoy such extensive
research facilities, designed and organized specifically to
support France Telecom's growth strategy.


INTEGRA: Court Subjects Integra to Compulsory Administration
------------------------------------------------------------
The commercial court of Nanterre has placed French company
Integra under compulsory administration, Les Echos reports.  

Potential shareholders and the company's majority shareholder,
Genuity Inc. will hold negotiations while the Company is under
observation.     

In an August issue of TCR-Europe, Integra, a company involved in
creating and hosting internet sites was reported requesting the
suspension of the trading of its shares on the Nouveau March. The
action follows an announcement of parent Genuity to stop
providing funds to the unit. The company failed in its
negotiation with the parent company to obtain funding for its
short term financing needs.  

After warning that it may file a petition for bankruptcy on
failure to find other sources of financing, the Company was
indeed declared insolvent on August 28.

According to the TCR-Europe report, Integra blames its troubles
on European businesses that are hesitant to invest in IT. It also
attributes its financial breakdown in the shutdown of
professional services divisions in Germany, Spain and
Netherlands.

Genuity Inc. owns a 93 percent stake in Integra.  

CONTACT:  INTEGRA
          Fredrik Tangeraas
          Phone: +33 (0)1.58.04.21 00


VIVENDI: To Negotiate With Vodafone Over Cegetel Stake
----------------------------------------------------------------
The chief executives of Vodafone Group PLC and Vivendi Universal
SA will hold a negotiation on the possible sale of Vivendi's
stake in Cegetel SA to Vodafone, the Wall Street Journal reports.

At the meeting, Vodafone's Christopher Gent and Vivendi's Jean-
Rene Fourtou will discuss Vodafone's offer of EUR6.5 billion
(US$6.46 billion) for Vivende's 44% stake in Cegetel.

Although Vivendi earlier declared it has no intention of selling
its stake in Cegetel, people familiar with the situation say the
company might consider a sale for a EUR8 billion offer.

According to the report, Vodafone took a friendly approach with
its offer since Vivendi, although pressured to repay EUR19
billion load, has options other than selling the Cegetel stake.

Vodafone has also negotiated with British Telecommunications PLC
about buying the latter's 26% stake in Cegetel.

Cegetel, which has an 80% stake in France's mobile-phone operator
SFR, is considered an attractive asset in the telecommunications
sector because of the growth potential of the French mobile-phone
market.


VIVENDI: Asset Sale Worries French Authorities
----------------------------------------------
France's culture minister Jean-Jacques Aillagon said President
Jacques Chirac is concerned about the move of French media
company Vivendi to sell its publishing unit, says Associated
Press.

According to the minister, some of the dictionary publishers in
Vivendi's publishing empire are part of France's heritage and
should not be sold.  Culture Minister Jean-Jacques Aillagon and
Prime Minister Jean-Pierre Raffarin share the same sentiment,
according to the report.

The company, led by its new chairman Jean-Rene Fourtou, is
planning to unload at least EUR10 billion (US$9.83 billion) worth
of assets in two years to cut debts. According to reports, the
company has offered its entire publishing unit for US$3 billion
to US$5 billion. It is also planning to sell its U.S. educational
publisher Houghton Mifflin for up to EUR2 billion ($1.97
billion).

Prominent bidders of the publishing assets are U.S.-based
investment funds.

According to the minister, "Any dismemberment of Vivendi
Universal Publishing would deprive our country of its only group
that can compare with Anglo-Saxon publishers."

Vivendi's chairman indeed has plans of taking into consideration
the country's interest in the sale, a person close to the
chairman was quoted as saying in other reports.


VIVENDI: Ministers Want to Keep Publishing Assets "French"
---------------------------------------------------------
French culture ministers of the present and previous
administrations want to keep the publishing assets of Vivendi
Universal in French hands, Financial Times reports.

Culture Minister Jean-Jacques Aillagon disclosed he is closely
watching the developments of the transaction.

Executives in Vivendi Universal admit the issue will narrow down
the number of potential bidders.  

French authorities contend that Vivendi's publishing empire holds
part of France's heritage. Included in Vivendi's Universal
Publishing are national treasures, such as Larousse and Le
Robert, publishers of the dictionaries and reference books that
foster understanding of French civilization and culture around
the world.

French private equity groups PAI and Eurazeo are leading separate
consortium bids for the publishing assets.  Vivendi Universal
Publishing had sales of EUR4.7bn and EUR827m earnings before
interest, tax and depreciation last year.


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G E R M A N Y
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BABCOCK: To Maintain Service Operation as Core Activity
-------------------------------------------------------
Insolvent German engineering company Babcock Borsig AG plans to
continue its services division as a core activity, Suddeutsche
Zeitung reports.

The company will launch Babcock Borsig Power Systems, a company
created to continue the group's core activities. The rescue
company, which will be launched on October 1, will consist of the
following divisions: services, energy technology and
environmental technology. Half of the projected sales of the new
company will come from maintenance, modernization and spare
parts.

The company has high hope for the services division, as it
registered global turnover of EUR700 last year and reportedly has
pending orders of EUR150 million.

Banks are now activating a new credit line for the division.


DEUTSCHE TELEKOM: Management Will Forgo Salary Hike to Cut Costs
--------------------------------------------------------------
The management of German telecommunications group Deutsche
Telekom AG is helping the company in its cost-cutting measures.  
The management board members will forgo part of their variable
salary this year, says Frankfurter Allgemene Zeitung.  The
management board members received a pay hike of 89% last year.

Leading managers and some management staff having salaries
outside the pay scale will also agree to forgo pay rises. The
remaining management staff whose pay is outside the agreed pay
scale will as well agree to suspend salary increases.

The company aims to save total staff costs of at least 100m euros
in 2002 and 2003, says the report.

Deutsche Telekom, which posted net loss of EUR3.9 billion for the
first half of 2002, is currently conducting a review to solve the
EUR4 to EUR7 billion gap in the company's plan to reduce its debt
to EUR50 billion by the end of 2003.  The company had EUR64.2
billion-debt at the end of June.


KIRCHMEDIA: Extends Deadline of Binding Bids for Assets
-------------------------------------------------------
Binding bids for the assets of the insolvent broadcasting and
rights unit KirchMedia may still be posted until Thursday, AFX
reports citing a company spokesman.  

Although the deadline was moved from Tuesday to Thursday, good
offers after the Thursday deadline will still be considered, says
sources.

Four consortia are reportedly interested in the assets.  These
include a consortium of TF1 and U.S. businessman Haim Saban, a
combination of Commerzbank AG with Hollywood studio Columbia
TriStar, a group led by Lehman Brothers (which includes Saudi
prince Bin Talal Al Waleed), and a consortium of German
publishing groups Axel Springer Verlag and Heinrich Bauer Verlag.  

TFI and Haim Saban offered EUR2.6 billion, the highest bid,
according to the report.  That bid was followed by the EUR2.5-
billion-bid from Lehman's group and the EUR2.3-billion-bid from
Commerzbank/Columbia Tristar.

The Springer/Bauer consortium, however, only offered EUR1.4
billion. According to the report, a spokesperson for Springer
disclosed, Springer/Bauer remains willing to acquire the asset,
but only at the right price.

Italian Mediaset SpA also showed interest in Kirchmedia's 52.5%
stake in broadcaster ProSiebenSat1.  The company has been
identified with the Lehman Brothers-led consortium.


INTERSHOP COMMUNICATIONS: Launches Web Site for Employee Orders
---------------------------------------------------------------
Intershop Communications (http://www.intershop.com),an  
established provider of e-commerce solutions for global
enterprises, announced that a web site dedicated to enabling VW
employees to order accessories and parts online has been
successfully launched. With this site, Volkswagen AG's VW Group
has made it possible for employees to order items and parts for
all Volkswagen and Audi models from a convenient, one-stop source
at www.votex-shop.de.

The software for this B2E (business to employee) e-commerce
solution, based on Intershop's EnfinityT, was developed jointly
by Intershop and Votex, a wholly owned subsidiary of Volkswagen.
The complete product catalog is available online, enabling
employees to place orders, entering their ID number for
authentication. Intershop is now working on expanding the
initiative to extend service to all customers.

Votex is responsible for development, sales and logistics
accounting for all accessories across the VW Group. The product
range is organized into eight categories and comprises over 5,000
items, ranging from seasonal tires to branded apparel. Functions
of the solution include an automatic check on product
availability and order tracking for employees who place orders
over the Internet. By using Enfinity technology, Votex offers
several targeted product catalogs, advanced search functionality,
personalized shopping lists and a basket history view. The Votex
solution also features integrated payment processing
functionalities and supports the SAP ERP system.

Intershop Communications is a leading provider of e-commerce
solutions for enterprises who want to automate marketing,
procurement, and sales using Internet technology. The Intershop
Enfinity commerce platform, combined with proven, flexible
industry and cross-industry solutions, enables companies to
manage multiple business units from a single commerce platform,
optimize their business relationships, improve business
efficiencies and cut costs to increase profit margins. By
streamlining business processes, companies can achieve a higher
return on investment at a lower total cost of ownership,
increasing the lifetime value of customers and partners.
Intershop has more than 300 enterprise customers worldwide in
retail, high-tech and manufacturing, media and
telecommunications. Customers including Hewlett-Packard,
Motorola, Bosch, BMW, TRW, Bertelsmann, Otto and Homebase have
selected Intershop's Enfinity as the foundation for their global
e-commerce strategies.

CONTACT:  INTERSHOP TOWER
          D-07740 Jena
          Germany
          Phone: +49-3641-50-0
          Fax: +49-3641-50-1002


MOBILCOM: Schmid Fixes Share Offer at EUR11 to EUR17
----------------------------------------------------
MobilCom AG's largest shareholder Gerhard Schmid is not selling
his stake to France Telecom for any amount above the EUR11 to
EUR17 bracket, AFX reports.

The German securities law provides that an offer price is
calculated from the average trading price in the 90 days
preceding an offer. Mobilcom's shares closed at EUR5.70 on
Friday.

Schmid, however, said he would not base his offer on this rule.  
He also alleged that France Telecom deliberately brought this
average down.

France Telecom, which holds a 28.5% stake in Mobilcom, is
scheduled to decide on Thursday whether to buy the rest of
Mobilcom or withdraw from it.

According to the report, France Telekom's chairman is inclined to
pull the plug on Telekom.  The French government, which controls
54% of the company, however, is against the plan for political
reasons.


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


OLYMPIC AIRWAYS: Invitation for Tenders
---------------------------------------
Olympic Airways S.A. invites Tenders for the sale and LEASEBACK
of up to six (6) B737-400 a/c, listed below:

ID MSN  MAN.   YEAR  F/H    CYCLES
SX-BKA  25313  1991  32331  20246
SX-BKB  25314  1991  32807  20329
SX-BKC  25361  1991  32429  20203
SX-BKD  25362  1991  32435  20258
SX-BKE  25417  1991  32388  20040
SX-BKF  25430  1991  31959  19804

Note: FH and CYCLES as per July 31, 2002.
    
All aircraft are equipped with CFMI CFM56 - 3C1 engines (23,500-
lbs. thrust) and they have MTOW 68,040 Kgs. (H G W).

The a/c will be sold and leased back "as is, where is " either as
a package deal or individually .The condition of the above is
outlined in the detailed Tender Document. Offers will be accepted
only from individuals or corporations. Brokers are excluded.
Interested parties can inspect the above, upon request and obtain
Tender Documents from:

Mr. Kleon Chryssafitis
Technical Services Division
Tel: 30 - 10 - 3562264
Fax: 30 - 10 - 3562104

Sealed envelopes should be sent to the following address, clearly
indicating the reference below, no later than 14:30 GMT hours of
20/09/2002, being the date and the time of the opening  of the
tenders.

In cases of:
- mistakes and/or omissions of the indication on the envelopes or
- delayed posting, beyond the indicating date and time,
O.A.reserves the right not to accept the relevant tender.

O.A. reserves the right to declare the Tender fruitless or the
submitted offers not beneficial, without any further
justification.

The present invitation will be ruled by Greek Law and in case of
any disputes that may arise from the present invitation, the
Courts of Athens will be exclusively competent.


Tender S-2/B737-484/2002
Olympic Airways S.A.
Chief Financial Officer
Athens Hellenikon Airport West Terminal
Hellenikon 16604 - GREECE


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


LYCOS EUROPE: Extends Agreement With Espotting
----------------------------------------------
Lycos Europe (http://www.lycos.de)and Espotting have extended  
their agreement of 26th July 2002 by a period of one year. The
co-operation will now last three years, instead of its former
two, with revenues for Lycos Europe remaining unchanged at
EUR17.5 million.

Espotting will provide its high-quality Pay for Inclusion
listings to Lycos Europe's channel and directory pages. Roll-out
of the service will start in September and will include Austria,
Belgium, Denmark, France, Germany, Italy, the Netherlands,
Norway, Spain, Sweden, Switzerland and the U.K.


VERSATEL TELECOM: Resumes Trading
----------------------------------
Market Supervision Amsterdam announces trade resumption in the
following security:

Name of the company: Versatel, Versatel 4% 2004, Versatel 4%
2005, and Versatel Telcom Intern. Senior.

ISIN code: NL0000391266, XS0105468341 XS0109726710 and
XS0109727445 Trading group: J1, J5 and L2

Date: September 9, 2002

As from: 12.40 hrs


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


ELEKTRIM: Management Board to Resume Discussion With Bondholders
----------------------------------------------------------------
The Management Board of Elektrim S.A. announces that the
Supervisory Board of Elektrim S.A., at its meeting held on
September 9, 2002 passed the following resolution:

The Supervisory Board recommends to the Management Board to
promptly resume the discussions with the bondholders in order to
enter a mutually acceptable and feasible repayment agreement
given the current adverse conditions and events. Any agreement
should take into account the recent offer received by the Company
from Elliott Advisers (UK) Ltd as well as ongoing negotiations
regarding Elektrim Telekomunikacja Sp. z o.o. The Management
Board should in this context fully explain the reasons for not
entering into final restructuring agreement and make constructive
proposals to the bondholders to resolve the matter in the most
expeditious manner.

CONTACT:  Jacek Dabrowski, Director Investor Relations
          Elektrim SA
          Phone: (+48 22) 432 87 75
          Fax: (+48 22) 432 84 75
          E-mail: jacek_dabrowski@elektrim.pl


ELEKTRIM: Bondholders Offer EUR350 Million for Telecom Assets
-------------------------------------------------------------
Holders of Elektrim's defaulted bonds made a EUR350 million
(US$345.5 million) bid for the Polish conglomerate's telecom
assets, Reuters reports. The group of bondholders, led by Elliott
Advisors, offers at least EUR270 million of cash.

The institution previously offered EUR450 million. The bid
however was lowered to adjust to lower valuations of the assets
in the sector.

The conglomerate failed to obtain agreement to sell its stake in
Elektrim Telekomunikacja (ET) to a group led by shareholder BRE
bank. Elektrim holds a 49 percent stake in ET, a joint venture
with France's Vivendi Universal.

Radoslaw Solan, an analyst with local bank PKO BP considered the
price for ET not bad at all.

Elektrim Chief Executive Maciej assured to examine the offer,
saying it is "an important sum." The executive admitted the
amount could help the conglomerate pay most of its debt.

Elektrim defaulted on EUR480 million of bonds at the end of last
year.


===========
R U S S I A
===========


RUSSIAN BANKS: S&P Upgrades Long-Term Counterparty Credit Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services last week raised its long-term
counterparty credit ratings on four Russian banks.

The upgrades are:

International Moscow Bank: raised to single-'B' from single-'B'
minus;

Alfa Bank and OJSC Commercial Bank Petrocommerce: raised to
single-'B'-minus from triple-'C'-plus; and

MDM Bank: raised to triple-'C'-plus from triple-'C'.

The outlook on Alfa Bank and MDM Bank were revised from stable to
positive.  International Moscow Bank and OJSC Commercial Bank
Petrocommerce remained on positive outlook.

The short-term ratings of the bank were as well affirmed.

The action follows the improvement in Russia's economic climate
during the past three years, the rating agency says.  The
country's economic environment "has increased business
opportunities for Russian banks and reduced the extremely high
credit risk linked to clients in the public and private sector,"
said Scott Bugie, a managing director in Standard & Poor's
Financial Services Group. "

The upgrade also reflects the recovery of the banking sector
after the massive defaults following the August 1998 financial
crisis.

The four banks whose ratings were upgraded has shown improvements
in their financial position during the past three years, the
rating report says.

International Moscow Bank has independent status and foreign-bank
supervision profile that attracts top-grade clients.

Both Alfa Bank and MDM Bank were able to expand networks, extend
franchises, and build capital through retained earnings.

OJSC Commercial Bank on the other hand, benefited from LUKoil
OAO's US115 million capital increase in the bank in late 2001.


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


UNION FENOSA: Hires Goldman Sachs to Sell Gas Business
------------------------------------------------------
Union Electrica Fenosa SA announced it has employed Goldman Sachs
to look for a partner that would bid for less than 50% of its gas
business Union Fenosa Gas, AFX reports.

A spokesman from the Company disclosed that Union Fenosa intends
to retain majority control over the unit because of the
"strategic" nature of the business.

Reports estimate that the sell-off of 50% of the gas business
will bring about EUR1.6 billion.  The amount could be used to cut
the group's debt, which is marked at around EUR6.6 billion at the
end of 2001.  It can also finance future investments, the report
added.

Fenosa had held earlier negotiations with several European gas
groups, including, BG Group PLC and TotalFinaElf, on the sale of
the part of the unit.

There is not yet a timetable as to when the sale will be
completed.  The concern of the company, according to the
spokesman, is finding the best partner.  Reports, however, have
suggested the sale could be completed as soon as the end of the
year.

Union Fenosa Gas sells natural gas and operates distribution
infrastructure.


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


LM ERICSSON: Dobson Cellular Selects Ericsson for Network
--------------------------------------------------------
Dobson Cellular has selected Ericsson (http://www.ericsson.com)
as a key partner in the upgrade of its TDMA digital wireless
network with EDGE-ready 850 MHz GSM/GPRS radio access equipment.
In addition to the equipment, Ericsson will provide network and
RF design, installation, engineering, testing support and
optimization services. The two-year agreement is Ericsson's first
contract with Dobson.

By upgrading networks in its 850 MHz, Dobson will be able to
offer its customers the latest, most advanced wireless services,
including multimedia messaging, location based services, and
browsing and software downloading capabilities. Furthermore, the
upgrade gives Dobson a roadmap for providing advanced mobile
voice and data services in the future.

"Ericsson is proud to begin this new partnership with Dobson
Cellular as it continues to bring innovative products and
services to its subscribers," Ericsson Inc. President and CEO
Angel Ruiz. "With the progress carriers such as Dobson are making
in the rural mobile sector, it's clear that advanced services
won't be limited to major metropolitan areas."

"Dobson is committed to providing its rural U.S. customers with
the most advanced wireless services available, and this agreement
supports that commitment," said Tim Duffy, senior vice president
and chief technical officer, Dobson Communications. "It also
helps us maintain continued seamless technology compatibility
with our two largest roaming partners, AT&T Wireless and Cingular
Wireless."

Ericsson GSM/GPRS radio access equipment is fully integrated for
the 850 MHz band. That distinction makes it easier and quicker to
perform simple network maintenance and troubleshooting functions,
thus reducing the cost of network operation. Ericsson's GSM macro
base stations, which are easily upgraded to EDGE, represent more
than 30 percent of all GSM base stations installed globally.

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:  Kathy Egan
          Corporate Communications
          Ericsson Inc.
          Phone: +1-212-685-4030
          E-mail: pressrelations@ericsson.com


LM ERICSSON: Recalculates Exercise Price for Convertibles
---------------------------------------------------------
In connection with the rights offering, and according to the
conditions of the loan, the following recalculation of the
convertible rate has been done:

Previous exercise price:                       59,00 SEK

Recalculated exercise price:                     41,70 SEK

Ericsson (http://www.ericsson.com)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:  Gary Pinkham
          Vice President
          Investor Relations
          Phone: +46 8 719 0858, +46 730 371 371
          E-mail: investorrelations@ericsson.com


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


SWISSAIR: Sairgroup Signs up Allen & Overy as Bankruptcy Counsel
----------------------------------------------------------------
SAirGroup Finance (USA), Inc. asks the U.S. Bankruptcy Court
for the Southern District of New York for its stamp of approval
to hire Allen & Overy as bankruptcy counsel.

The Debtor needs Allen & Overy to:

      a) advise the Debtor of its powers and duties as a debtor-
         in-possession;

      b) assist in the preparation of financial statements, the
         schedules of assets and liabilities, the statement of
         financial affairs, and other reports and documentation
         required by the Bankruptcy Code and the Federal Rules of
         Bankruptcy Procedure;

      c) represent the Debtor at all hearings on matters
         pertaining to its affairs;

      d) prosecute and defend litigated matters that may arise
         during the chapter 11 case;

      e) represent and negotiate on behalf of, the Debtor
         regarding any asset sales;

      f) negotiate, formulate, and confirm a plan of
         reorganization for the Debtor;

      g) counsel and represent the Debtor concerning the
         administration of claims and numerous other bankruptcy
         related matters arising in this case;

      h) counsel the Debtor about various litigation and
         liquidation matters relating to this chapter 11 case;
         and

      i) perform such other legal services that are desirable and
         necessary for the efficient and economic administration
         of the chapter 11 case.

The Debtor selected Allen & Overy as its attorneys because of
the firm's knowledge of the Debtor's business and financial
affairs and its extensive general experience and knowledge, and
in particular, its expertise in the field of business
reorganization under chapter 11 of the Bankruptcy Code.

Allen & Overy's regular hourly rates are:

           Members                     $650 to $675
           Counsel and Associates      $275 to $575
           Paraprofessionals           $130 to $200

Prior to the petition date, SairGroup Finance (USA), Inc.
participated in and assisted with financing transactions on
behalf of its parent and sole shareholder, SAirGroup.  The
Company filed for chapter 11 protection on September 3, 2002.
David C.L. Frauman, Esq., at Allen & Overy represents the Debtor
in its restructuring efforts.  When the Company filed for
protection from its creditors, it listed $460,161,000 in assets
and $582,888,000 in debts.


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


CORDIANT COMMUNICATIONS: Alan Page Considers Break-up Bid
---------------------------------------------------------
Alan Page, a leading creative director in retail and fashion
advertising, is assembling a team that would bid for troubled
marketing group Cordiant Communications, AFX reports, citing
documents of the bid.

The creative director, which reportedly will use his AIM-listed
company NWD to post the offer, believes that the team will
provide the finance and expertise to mount the proposal. The team
is prepared with a view for a break-up bid for Cordiant.

The team will be composed of senior figures from the advertising
and marketing industries.  It will also include some key City
players.

Cordiant Communication's shares have slumped in the past year due
to successive expensive acquisitions and client defections, the
report says.

Page plans to unload all the recent expensive acquisitions of the
Company to refocus on the American Bates agency network.


CORUS: Develops Exit Plan for CSN Merger Deal
---------------------------------------------
Anglo-Dutch Corus is developing a plan that could channel its
proposed US$4.3 billion takeover bid for Brazilian steelmaker CSN
in case the financial turmoil in the country worsens, the
Financial Times reports.

According to Corus, "What we have so far is a non-binding
agreement. We could walk away from this if we felt the deal was
not in our interests."

The merger of the two companies is advantageous as the new
company created could be used as outlet for steel in an important
merging market. It will also give Corus access to steelmaking and
iron ore sites that are cheaper than that in Europe.

Corus's share price has been affected by investor concern on the
fragility of Brazilian ecomomy as well as the uncertainty of the
election results.

The steel producer is particularly concerned that a left-wing
party may win in the October Elections.  In such case,
nationalization of important industrial plans is likely to
happen.

The official handing over of documents to shareholder for the
takeover is set November.  This gives Corus ample time to rethink
the deal or renegotiate terms. Shareholders of both companies are
scheduled to vote on the agreement in early 2003.

The merger will result to Corus shareholders owning 62.4 percent
of the combined Corus/CSN group, and CSN shareholders owning the
rest.


GLOBAL CROSSING: Wants Court to Rule Hindery Pact Non-Executory
---------------------------------------------------------------
Matthew A. Feldman, Esq., at Willkie Farr & Gallagher, in New
York, recounts that Leo J. Hindery, Jr., was appointed Chairman
and CEO of GlobalCenter Inc., then one of Global Crossing Ltd.'s
subsidiaries.  Pursuant to an Employment Agreement dated
December 5, 1999, Mr. Hindery was required to serve a 3-year term
as Chairman and CEO of GlobalCenter.  On March 1, 2000, Mr.
Hindery was also appointed CEO of Global Crossing, a position he
held until October 11, 2000, at which time he submitted his
resignation and signed a termination agreement.  The Termination
Agreement effectively severed Mr. Hindery's employment with
Global Crossing, while providing for his continued role as
Chairman and CEO of GlobalCenter Inc.

By this motion, the Debtors seek declaratory relief with respect
to the Termination Agreement between Global Crossing and Leo J.
Hindery, Jr.  Specifically, the Debtors ask the Court to declare
that the Termination Agreement is non-executory.  In the
alternative, the Debtors seek the Court's authority to reject the
Termination Agreement pursuant to Section 365 of the
Bankruptcy Code.

The Termination Agreement provides that upon Mr. Hindery's
termination as CEO of Global Crossing and until his resignation
as Chairman and CEO of GlobalCenter in January 2001, he is to
receive an annual salary of $995,000.  In addition, upon his
resignation as Chairman and CEO of GlobalCenter, Global Crossing
is required to make annual cash severance payments to Mr.
Hindery for the remainder of his term under the Employment
Agreement. Thus, pursuant to the Termination Agreement, Global
Crossing is obligated to make annual severance payments to Mr.
Hindery until December 5, 2002.  The Termination Agreement alo
requires Global Crossing to continue to provide Mr. Hindery with
an apartment in New York City through October 3, 2002.

In exchange for Global Crossing's payment obligations under the
Termination Agreement, Mr. Feldman relates that Mr. Hindery
agreed to continue to perform his duties as Chairman and Chief
Executive Officer of GlobalCenter pursuant to the Employment
Agreement.  In addition, Mr. Hindery agreed to provide certain
consulting services, if needed, to assist the newly appointed
Chief Executive Officer in his new role.  However, Mr. Hindery
has not provided any consulting services -- and no consulting
services have been requested -- since early 2001.

In addition, Mr. Hindery agreed that for the two years after his
resignation, he would neither:

-- issue or make any comment that would be construed or intended
to disparage or criticize Global Crossing; nor

-- violate the terms of his Proprietary Information Agreement
with Global Crossing.

Mr. Feldman notes that the Proprietary Information Agreement
includes a non-competition clause, as well as a provision for
non-disclosure of Global Crossing's proprietary information.
Additionally, the Proprietary Information Agreement requires that
for the two years following his employment, Mr. Hindery is
restricted from encouraging or soliciting any employee to leave
Global Crossing's employment for any reason.

The Debtors firmly believe that the Termination Agreement is not
an executory contract.  If the Court determines, however, that
the Termination Agreement is an executory contract or if the
Court refrains from reaching any determination as to the
executory nature of the Termination Agreement, the Debtors seek
to formally reject the Termination Agreement because it is
burdensome to their estates and provides little or no value.  

Without conceding that the Termination Agreement is an executory
contract, the Debtors, in an abundance of caution and in the
sound exercise of their business judgment, believe that rejecting
the Termination Agreement will benefit their estates by relieving
it of an agreement that has provided no benefit since well prior
to the Petition Date.

In the event that this Court authorizes rejection of the
Termination Agreement, the Debtors expressly reserve their rights
to dispute and object to any claim asserted under or relating to
the Termination Agreement or this Motion on any grounds.
Moreover, the Debtors specifically reserve any and all claims and
rights they may have against Mr. Hindery arising under or related
to the Termination Agreement, including, but not limited to,
enforcement and violations of the restrictive covenants under the
Termination Agreement.

Furthermore, the Debtors ask the Court that any claims against
them arising from the Termination Agreement or the rejection of
the agreement should be fixed with the Clerk of the Court by the
later of:

-- 30 days after entry of an order approving this Motion; or

-- September 30, 2002, which is the applicable bar date for the
filing of proofs of claim in these Chapter 11 cases.

The Debtors seek this relief in order to manage and control the
claims process in their cases. (Global Crossing Bankruptcy News,
Issue No. 20; Bankruptcy Creditors' Service, Inc., 609/392-0900)


INVENSYS: Announces Formal Notice for Specialist Securities
-----------------------------------------------------------
Application has been made to the UK Listing Authority for the
following securities to be admitted to the Official List.

Details Of Issue: Euro2 million medium term note program
Issuer: Invensys plc
Incorporated In: England and Wales

Particulars relating to the issue may be obtained during usual
business hours for fourteen days from the date of this formal
notice from:

Invensys plc               
UBS AG, acting through its business group UBS
Warburg
Invensys House             
1 Finsbury Avenue
Carlisle Place             
London EC2M 2PP
London SW1P 1BX

In addition, a copy of the Particulars is available for
inspection at the Document Viewing Facility at the Financial
Services Authority, 25 The North Colonnade, London E14 5HS.


INVENSYS PLC: Appoints New Senior Vice President of Finance
-----------------------------------------------------------
Invensys plc (http://www.invensys.com),a global leader in  
production technology and energy management, announces the
appointment of Adrian Hennah as Senior Vice President, Finance
with effect from October 2002.

Adrian joins from GlaxoSmithKline Plc (GSK), where he has been
Senior Vice President, Research and Development, responsible for
finance, venturing and technology alliances, business strategy
development, process redesign and operations at one of the
world's leading R&D organizations.

Adrian joins Invensys after 18 years at Glaxo where his roles
included finance, general management, operations and IT. His
penultimate role at GSK was as co-leader of the team co-
ordinating the world-wide integration of Glaxo Wellcome and
SmithKlineBeecham. Prior to this he was the Chief Financial
Officer for Glaxo Wellcome Inc USA, a $6bn operation.

Adrian gained his accountancy qualifications at Price Waterhouse,
before moving to its consultancy division. He is 44 years old.

CEO, Rick Haythornthwaite said, "In Adrian, we have attracted a
significant talent to Invensys. His track record in the financial
management of complex international businesses is outstanding and
his general management skills will also play a major part in
shaping the future success of Invensys.

Adrian will work alongside Kathleen O'Donovan to ensure a smooth
handover over the next few months. As we announced at our AGM in
July, Kathleen will then retire from Invensys and Adrian will
become Chief Financial Officer, leading a very strong in-house
finance operation. He will be elected to the Board when it meets
on October 23.

In the last 10 months, we have recruited nine people to the top
team and I believe we now have formidable depth and substance in
our leadership. The drive, direction, ability and ambition of
this team will be vital in helping Invensys complete its recovery
and make the rapid progress necessary to make the Group an
outstanding success."

The date of Kathleen O'Donovan's retirement will be the subject
of a separate announcement.

Invensys plc is a global leader in production technology and
energy management. The group helps customers improve their
performance and profitability using innovative services and
technologies and a deep understanding of their industries and
applications.

Invensys Production Management works closely with customers in
order to drive up performance of their production assets,
maximize their return on investments in production technologies
and remove cost and cash from their whole supply chain. The
division includes APV, Avantis, Baan, Eurotherm, Foxboro,
Simsci/Esscor, Triconex and Wonderware. These businesses address
process and batch industries

-- including the oil, gas and chemicals, food, beverage and
personal health care
-- and the discrete and hybrid manufacturing sectors.

Invensys Energy Management works with clients involved in the
supply, measurement and consumption of energy and water, to
reduce costs and waste and improve the efficiency, reliability
and security of power supply. The division includes Energy
Management Solutions, Appliance Controls, Climate Controls,
Global Services, Metering Systems, Powerware and Home Control
Systems. These businesses focus on markets connected with power
and energy infrastructure for industrial, commercial and
residential buildings.

The company also serves the specialized rail, wind-power and
electronic manufacturing (power components) markets through
Invensys Rail Systems, Hansen Transmissions and Lambda,
respectively, in its development division.

Invensys operates in more than 80 countries, with its
headquarters in London.

CONTACT:  Victoria Scarth
          Phone: 011-44-20-7821-3712
          Taylor Rafferty/Brian Rafferty
          Phone: 212/889-4350


WORLDCOM INC: Signs up Howrey Simon as Special Insurance Counsel
----------------------------------------------------------------
Worldcom Inc. and its debtor-affiliates seek to employ and retain
the law firm of Howrey Simon Arnold & White LLP, nunc pro
tunc to the Petition Date, as special insurance counsel.

Specifically, Howrey will be employed and retained to act as
counsel to assist the Debtors as counsel in connection with
insurance coverage matters and advice involving the various
claims and litigation pending against the Debtors and also in
connection with other significant insurance coverage matters,
notably in connection with coverage for certain "right-of-
way"claims pending in various locations around the United States.

The Debtors assert that the approval of Howrey's retention nunc
pro tunc to the Petition Date is fair and equitable in these
cases because they had an immediate need for representation with
regard to these matters and Howrey began its representation
before the terms of this engagement could be approved by the
Court.

The professional services that Howrey has been and will continue
to render in this regard as special insurance counsel include:

-- review and analysis of the Debtors' applicable or potentially
applicable insurance policies;

-- review of the numerous lawsuits pending in various
jurisdictions alleging securities law violations, ERISA
claims, and other claims in which the Debtors and certain of
their current and former officers and directors currently are
defendants in an insurance coverage context;

-- coordinating and handling dealings with the Debtors' insurers;

-- as or if necessary, pursuit and defense of claims against
Debtors' insurers and all matters attendant thereto;

-- continued pursuit of the Debtors' insurers in connection with
pending insurance coverage litigation, including the "right
of way" related insurance coverage litigation;

-- communicating with personnel of Debtors regarding matters
relating to Howrey's retention; and

-- other tasks generally incidental to acting as insurance
coverage counsel.

WorldCom Senior Vice President Susan Mayer relates that the
Debtors have selected Howrey as special insurance counsel on the
basis of Howrey's considerable experience and knowledge in
handling these types of matters.  The Debtors have been informed
that David Steuber, Kirk Pasich and Linda Kornfeld, partners of
Howrey, as well as other members of and associates of Howrey who
will be employed in connection with this representation, are
members in good standing of the Bar of the State of California
and the United States District Court for the Central District
ofCalifornia.  The services provided by Howrey as special
insurance counsel will not be duplicative of services providedby
any other counsel.  Howrey will coordinate with the Debtors'
other counsels to ensure that there is no unnecessaryduplication
of services performed for or charged to the Debtors' estates.

Howrey member David W. Steuber, Esq., assures the Court that the
firm has no connection with the Debtors, their creditors, any
other parties-in-interest, or their respective attorneys and
accountants, or with the United States Trustee or any person
employed in the office of the United States Trustee.  In
addition, the attorneys at Howrey are not relatives of any of the
District Judges or Bankruptcy Judges in this District, or of the
United States Trustee.  However, Howrey has or had a relationship
with these parties:

A. Top 50 Unsecured Creditors:  Alcatel USA, AMR Corporation,
AT&T Broadband, Compaq Computer Corp., Comsat Communications
Inc., Electronic Data Systems Inc., Qwest Communications
International, Sun Microsystems Inc., Verizon Communications
Inc., and Verizon Wireless Inc.; and

B. Top 50 Bondholders:  J.P. Morgan Chase, Bear Stearns & Co.
Inc., Citibank, ABN AMRO, Salomon Smith Barney, Credit Suisse
First Boston, Banc of America, Custodial Trust, American Express,
UBS Warburg, PNC Bank National Association, and
Charles Schwab.

Howrey will conduct an ongoing review of its files to ensure that
no conflicts or other disqualifying circumstances exist or arise.
If any new facts or relationships are discovered, Howrey
will supplement its disclosure with the Court.

The Debtors propose to compensate Howrey on an hourly basis at
rates consistent with the rates charged by Howrey in non-
bankruptcy matters of this type.  The hourly rates proposed to be
charged by Howrey in connection with this representation range
from:

        Partners             $320 - 680
        Associates            200 - 470
        Paralegals             85 - 225

Mr. Steuber informs the Court that Howrey has a $157,242.38
prepetition claim billed to the Debtors for work done in
connection with certain insurance coverage matters.  Howrey also
asserts that it performed $38,528.02 in unbilled work for the
Debtors prior to the Petition Date.  Ms. Mayer clarifies that the
Debtors do not seek authority to pay these prepetition amounts.
Howrey also holds a $75,000 retainer from the Debtors. (Worldcom
Bankruptcy News, Issue No. 6; Bankruptcy Creditors'Service, Inc.,
609/392-0900)


WORLDCOM INC: DebtTraders Maintains "Strong Buy" Recommendation
---------------------------------------------------------------
DebtTraders analyst Matther Breckenridge, CFA (1 212-247-5300),
said that DebtTraders continues to maintain its STRONG BUY
recommendation (SAFETY 48%; ATTRACTIVENESS 90%) on the WorldCom,
Inc., Senior Notes and on the MCI Corporation Senior Notes.

Mr. Breckenridge explained that DebtTraders came up with this
recommendation after it had determined that recovery to WorldCom,
Inc., bondholders will likely range between 24.5% and 53.5% of
par with the most likely recovery being closer to approximately
40% of par.

Worldcom Inc.'s 11.25% bonds due 2007 (WCOM07USA1), DebtTraders
reports, are trading at 22.5 cents-on-the-dollar. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM07USA1for  
real-time bond pricing.

                                   ***********

       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, Ma.Cristina Canson and 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
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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,
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