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            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

                 Tuesday, September 17, 2002, Vol. 3, No. 184


                              Headlines

* F R A N C E *

FRANCE TELECOM: Government Assures Cash Injection
FRANCE TELECOM: Moody's Raised Outlook, Affirms Ratings
FRANCE TELECOM: Orange CEO May Sell France Telecom's 84.17% Stake
FRANCE TELECOM: Fitch Affirms Unsecured and Short-Term Rating
FRANCE TELECOM: Standard & Poor's Maintains Ratings and Outlook
FRANCE TELECOM: Reports on Revenues, Acquisitions, Licenses
VIVENDI UNIVERSAL: Rivals Vodafone's Bid on Cegetel
VIVENDI UNIVERSAL: Canal Plus Sells Subsidiary for EUR200 Million
VIVENDI UNIVERSAL: Banks Want Repayment Before Granting Loan

* G E R M A N Y *

DEUTSCHE TELEKOM: May Buy Polska Telefonia
MOBILCOM: Expects to File Creditor Protection

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

AEGON NV: Vereniging and Aegon N.V. Launches Restructuring
KPNQWEST: KPN Acquires U.K. Portion of KPNQwest Network

* P O L A N D *

ELEKTRIM: Files Request for Declaration of Bankruptcy
POLISH STEEL MILLS: Undertakes Extensive Restructuring Plans
TELEKOMUNIKACJA POLSKA: Securities Trading Update

* S W E D E N *

LM ERICSSON: Signs MoU With France Telecom on Mobilcom Financing

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

ABB LTD.: Chief Executive Rules Out Rights Issue

* U N I T E D   K I N G D O M *

ANTISOMA PLC: Preliminary Results for the Year Ended 30 June 2002
BRITISH ENERGY: To Miss September 27 Loan Deadline
BRITISH ENERGY: Fitch Predicts Danger of Government Aid
CLAIMS DIRECT: Investors Band to Claim Compensation
MARCONI PLC: Announces Approval of Interim Security
PPL THERAPEUTICS PLC: Announces Interim Report and Accounts 2002
WORLDCOM INC: Wants Lease Decision Period Stretched to Sept. 22


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


FRANCE TELECOM: Government Assures Cash Injection
-------------------------------------------------
The French government has promised a "very substantial" cash
injection for the beleaguered telecommunications giant France
Telecom, Associated Press reports.

In a statement, the Finance ministry assured that the government
would "contribute in a very substantial reinforcement of the
company's equity capital."

With the disclosure of nearly US$12 billion losses for
the first half of the year on Friday, the telecom company has
decided to sever ties with its German affiliate, MobilCom AG.  
The withdrawal is expected to affect 5,000 employees in the
German company.

Another significant change in the telco is the resignation of
chairman Michael Bon. Bon's replacement is expected
to present a rescue package to France Telecom's board according
to the country's Finance Ministry.

Bon disclosed in a statement that his resignation was prompted by
the losses accrued by the company.  He is not as much worried
with France Telecom's debt, as with its credit line in the long
term.  According to him, the telco has still access to EUR7
billion (US$6.8 billion) in unused credit at the end of the year,
but it may not be able to survive in the long run in a situation
where nobody anybody wants to lend it money anymore while
everyone wants to collect money owed in the soonest possible
time.

According to France's Minister Francis Mer, Mr. Bon will continue
to serve as chairman until a replacement is announced by the end
of the month or early next month.   


FRANCE TELECOM: Moody's Raised Outlook, Affirms Ratings
-------------------------------------------------------
Moody's Investors Service raised its rating Outlook on France
Telecom and its subsidiary, Orange plc, from negative to stable.

The rating agency also affirmed the Baa3 long-term and Prime-3
short-term ratings for France Telecom, and the Baa3 rating of
Orange plc.  The affirmation of Orange's ratings was linked to
that of France Telecom, and based on the strong implicit support
of France Telecom towards the subsidiary.

The action was issued after the French government issued a
statement of support to France Telecom. The government expressed
willingness to help the French company in its financial
restructuring, and to provide future capital injection. It
further assures the company of its help in case a liquidity
problem arises.

Moody's forecasts that, "FT will benefit from a significant
growth in free cash flow during 2003, albeit not sufficient to
significantly reduce the current level of indebtedness."

The rating agency also noted that France Telecom would no longer
increase its stake in Mobilcom.

Orange SA, domiciled in London, UK, is a subsidiary of FT. Orange
SA had some 41.4 million wireless subscribers as of 30 June 2002,
18.6 million of which were in France and 12.8 million in the UK.

France Telecom is domiciled in Paris, France. It is the principal
provider of telecommunication services in France and one of the
world's leading telecommunication service providers, with
activities in over 75 countries.


FRANCE TELECOM: Orange CEO May Sell France Telecom's 84.17% Stake
-----------------------------------------------------------------
Orange plc CEO Jean Francois Pontal considers the sale of France
Telecom's 84.17% stake in its mobile phone unit a "very bad
solution" for the subsidiary, AFX reports.

Parent France Telecom is reported to need about EUR15
billion to erase concerns about its liquidity.  In light of its
need for this much cash, analysts expect France Telecom to
consider selling a stake in its mobile unit, Orange SA, once a
rights or bond issue has been concluded.  

France Telecom holds 85% of Orange, and the remainder in free float.
Analysts estimate the French behemoth could sell up to 30% of
Orange, which would now be worth EUR6.9 billion.

Mr. Pontal said, "Even a partial deconsolidation would have a
devastating effect on France Telecom's debt ratios, especially on
the ratio of debt to EBITDA."

He predicts the move will affect the company's ratings and turn
bankers off, making a capital increase even more difficult
for the mobile phone unit to obtain.


FRANCE TELECOM: Fitch Affirms Unsecured and Short-Term Rating
--------------------------------------------------------------
Fitch Ratings affirmed France Telecom's (FT) Senior Unsecured
rating of 'BBB-' and its Short-term of 'F3' and removed the
Rating Watch Negative status replacing it with a Stable Outlook.

The action was influenced by the decision of the government to
support the company in resolving liquidity and financial risk
profile. The rating agency sees that the government is addressing
not only France Telecom's liquidity concern but also its
fundamental capital structure.

Although the plan of the new Chairman is yet to be articulated,
Fitch sees that both the company and the government is taking
efforts to solve the problem.  

"Whatever actions are taken will be pursued with the goal of
bringing stability to the financial profile in a manner
consistent with at least a 'BBB-' investment grade rating," the
rating agency says.


FRANCE TELECOM: Standard & Poor's Maintains Ratings and Outlook
---------------------------------------------------------------
Standard & Poor's Rating Services maintained the ratings and
outlook of BBB-/Stable/A3 of France Telecom according to AFX.

The action was taken after the release of the company's first-
half 2002 earnings and its announcement of withdrawing support
from German affiliate MobilCom AG.  

S&P also assigned the rating basing on the French government's
clear indication of support to France Telecom's effort of
stabilizing its balance sheet and resolving liquidity issues.

A delay in the group's debt reduction and shareholders' equity
strengthening, however, would put pressure on the ratings.

The rating agency also indicated that it is closely watching the
company's future management, strategic development and
shareholder support.


FRANCE TELECOM: Reports on Revenues, Acquisitions, Licenses
-----------------------------------------------------------
France Telecom: First-half 2002 marked by 17.3% increase in
operating income and net loss due to non-recurring provisions
- End of investments in MobilCom
- A business model which generates considerable unleveraged free
cash flow
- Sustained growth in revenues (+10%), EBITDA (+ 13.2%) and
operating income (+17.3%)
- Higher profit margins as a result of intensified management
controls
- Net results impacted by non-recurring provisions
- Consolidated revenues: EUR22.5 billion (+10% over 1H 2001), of
which 40% from outside France
- EBITDA: EUR6.9 billion (+13.2%)
- Operating income: EUR3.2 billion (+17.3%)
- Recurring income before tax: EUR1.0 billion
- Non-recurring provisions and other exceptional items: EUR(11.1)
billion
- Net loss (after minority interests): EUR(12.2) billion
- Net debt: EUR69.7 billion
- Net Group unleveraged free cash flow from operations: EUR3.6
billion (+67%)

Sustained growth and steadily rising operating margins: +13.2%
for EBITDA and +17.3% for operating income

France Telecom's results from operations  were up significantly
in all of the Group's fixed-line, wireless and Internet
businesses, reflecting a strong increase in the operating
profitability of its core activities. Between the first half of
2001 and the first half of 2002, consolidated revenues increased
by 10%, EBITDA by 13.2% and operating income by 17.3%. On a pro
forma basis (1),  growth for the first-half of 2002 was just over
2% for revenues, 10% for EBITDA and 15% for operating income.

These results reflect the excellent operating performance of new
businesses, including wireless and Internet activities, as well
as operations outside France. For the first six months of 2002
these high-growth segments accounted for nearly 69% of total
Group revenues, up from 64% in 2000 and 66% in 2001. These
activities have fully benefited from sustained expansion in new
services such as broadband Internet and wireless data services
(SMS, WAP or GPRS). Operating results for first-half 2002 also
reflect the competitiveness of fixed-line services in France.

New business areas currently account for 48% of Group EBITDA, up
from 34% a year earlier. As a result of sustained growth in new
businesses, ongoing management controls and lower capital
expenditures, France Telecom's gross operating margins
(EBITDA/revenues) advanced from 28.4% for first-half 2001 to
30.6% for first-half 2002 on a pro forma basis.

The growth strategy pursued by the Group over the past five years
has continued to yield positive results. Growth remains sustained
and France Telecom's operating profitability and its ability to
generate unleveraged free cash flow have increased significantly.

- Orange, the market leader in France and the U.K., outstripped
expectations in the first half of 2002. Revenue growth was 13.8%,
the customer base expanded 16.6% in one year, and the trend in
average annual revenue per user was encouraging, both in France
and in the U.K. The 41% jump in EBITDA reflects the increasing
profitability of this segment. In addition, the ratio of EBITDA
to network revenues was 31.3% in the first half of 2002, up from
26.1% in the first half of 2001.

- Wanadoo, Europe's No. 2 ISP, is ahead of schedule in achieving
its development objectives. For the first time since its IPO,
Wanadoo reported positive EBITDA of 29 million euros,
underscoring the significant improvement in its profitability.
Wanadoo's Internet access services also showed strong growth,
both in France and other countries, as revenues surged 88.8% for
the first six months of 2002.

- Equant reached breakeven for operations despite a difficult
business environment. EBITDA was 78 million euros at June 30,
2002, up from an EBITDA loss of 11 million euros at June 30,
2001. This performance is the result of more efficient cost
control and the initial effects of synergies achieved following
the merger with Global One.

- For the first half of 2002, TP Group (Polish carrier T.P.S.A.
and its subsidiaries, including wireless operator PTK Centertel)
consolidated in France Telecom's accounts since April 1, 2002,
recorded an increase of over 10% in EBITDA versus first-half 2001
on a pro forma basis. The EBITDA margin reached 42.1% at June 30,
2002, up from 36.6% at June 30, 2001. With its portfolio of
fixed-line, wireless and Internet businesses, TP Group is a
profitable company, with considerable growth potential in all its
markets.

- As anticipated, the fixed-line segment has demonstrated its
competitiveness: the one-time decrease observed in local call
market share in the first quarter of 2002 was not repeated in the
second quarter. France Telecom's share of the local and long-
distance markets is stabilizing. In addition, the fixed-line
segment benefits from fresh growth impetus from new services such
as ADSL, which had 730,000 customers at the end of June 2002.

Companies in which France Telecom has a controlling interest had
a total of 107.3 million customers at the end of June 2002,
making it one of Europe's leading telecommunications operators.
The Group has achieved critical mass in all its core businesses,
and is now consolidating its positions. Orange, the market leader
in France and the U.K., has established itself as a major pan-
European brand; Wanadoo has further strengthened its presence in
Spain with Eresmas; and Equant is increasing its profitability
following the successful merger with Global One.

A business model that generates significant unleveraged free cash
flow: 3.6 billion euros (+67%)

France Telecom's business model, based on the generation of free
cash flow, is efficient. Strong growth in EBITDA from all
segments and increases in unleveraged free cash flow have been
made possible by stable cash flows from mature businesses,
coupled with a strong increase in the profitability of new
activities. For the six months ending June 30, 2002, the increase
in unleveraged free cash flow accelerated significantly to more
than 3.6 billion euros, up 67% over the first half of 2001.

Unleveraged cash flow from fixed-line telephony in France was up
more than 8% during the period thanks to a marked reduction in
capital expenditure.

During the same period, the Group's growth businesses also
generated more than 1 billion euros of free cash flow. This
compares with negative free cash flow of 570 million euros for
the year-earlier period. This strong increase is due mainly to
improved margins for wireless activities. For the first six
months of 2002, Orange had unleveraged free cash flow of 871
million euros, compared with 201 million euros for the first half
of 2001.

Non-recurring provisions, due mainly to MobilCom, totaling
EUR10.8 billion

MobilCom

In 2001, a disagreement arose between Gerhard Schmid, MobilCom,
France Telecom and Orange as to the conditions of application of
the cooperation framework agreement, in particular with respect
to MobilCom's business plan for development of its UMTS activity
and the ability of France Telecom to approve this plan.

On June 11, 2002, France Telecom and Orange informed MobilCom and
Gerhard Schmid that they were terminating the cooperation
framework agreement, following a series of serious breaches of
the agreement by Gerhard Schmid and MobilCom.

On June 21, 2002, Mr Schmid was dismissed from his position as
Chief Executive Officer by decision of MobilCom's Supervisory
Board.

Once the violation of the cooperation framework agreement by Mr
Schmid and MobilCom was established, France Telecom started
discussions with the various parties involved in order to
determine whether a solution acceptable to all could be found to
ensure the future of MobilCom. In this spirit, on July 30, 2002,
France Telecom signed a Memorandum of Understanding with the bank
syndicate that had granted MobilCom a credit facility of 4.7
billion euros. This agreement provides that the banks would sell
the MobilCom loans to France Telecom in exchange for Subordinated
Perpetual Convertible Securities convertible into shares of
France Telecom. Similar agreements have been signed with respect
to vendor financing loans.

After the dismissal of Mr Schmid from MobilCom's Management
Board, an in-depth operational, strategic and legal analysis of
MobilCom was undertaken with internal and external experts on
behalf of France Telecom and Orange.

The conclusions of these in-depth analyses obtained in August and
September 2002 showed the structural difficulties of MobilCom,
the significant decline in its results and the weakness of its
customer base. These results have led France Telecom to conclude
that MobilCom's UMTS activity is not viable on a standalone
basis.

Furthermore, the lack of any change in the German regulatory
framework necessary for market consolidation and the European
Commission's decision to apply the subsidiarity principle to
national legislation on this issue have also contributed to the
loss of the reasonable expectation of consolidation among UMTS
players in Germany, as France Telecom had anticipated when it
closed its 2001 accounts.

From a strategic standpoint, the evolution of the German market,
which is characterized by an excessive number of UMTS
licenseholders, the lack of flexibility of the German regulatory
framework necessary for market consolidation, combined with the
troubling situation of MobilCom revealed by the  in-depth
analyses undertaken and the significant deterioration of
relationships between shareholders, led the Board of Directors of
France Telecom to decide, at its meeting on September 12, 2002,
not to seek to take control of MobilCom and to no longer respond
to its requests for financial support.

However, France Telecom has expressed its hope to seek to
implement the agreements reached with the banks and equipment
suppliers of MobilCom, with a view to purchasing their loans in
exchange for Subordinated Perpetual Convertible Securities
convertible into shares of France Telecom.

As a result, France Telecom took a provision for risks of 7
billion euros in its accounts for the six months ended June 30,
2002 related to the purchase of liabilities from banks and
suppliers, and a total depreciation of the 290 million euros in
shareholder loans granted by France Telecom to MobilCom in the
first half of 2002.

Deferred income taxes
The 7.3 billion euro provision for MobilCom and the drop in the
France Telecom share price have led to a deferment of the date at
which further taxes will be paid and a recalculation of the basis
used for determination of deferred tax assets.

Under these conditions, the application of prudent accounting
principles, which under accounting norms take precedence over the
recognition of deferred tax assets, resulted in a provision for
net deferred tax liabilities of 1.8 billion euros.

EUR69.7 billion in net debt at June 30, 2002

Net debt totaled 69.7 billion euros at June 30, 2002. This
compares with 63.4 billion euros at December 31, 2001.
The net debt/EBITDA ratio was 5, calculated on a pro forma basis
over a rolling 12-month period, and the average cost of net debt
for the first half of 2002 was 5.25%.

France Telecom's net debt is expected to decline slightly during
the second half of 2002 due to assets disposed since June 30,
2002 (TDF for 1.6 billion euros, Stellat for 200 million euros
and Casema for 700 million euros) and anticipated cash inflows in
excess of 1.5 billion euros, from the disposal of Noos, the sale
of receivables, and unleveraged free cash flow.

Moreover, the amount of credit lines currently available _ 7.15
billion euros at June 30, 2002 _ is expected to be maintained
through the end of this year.

As noted above, France Telecom expects at least 4 billion euros
in additional financial resources by the end of this year from
unleveraged free cash flow, disposals of non-core assets and from
the sale of receivables, both already executed or planned over
the coming months.

Cash outlays, either already completed in or planned for the
second half of 2002, total 4.2 billion euros, covering financial
investments, the portion of dividends paid in cash and debt
repayment.
Credit lines available at December 31, 2002 are therefore
expected to total approximately 7 billion euros.

Long-term debt repayments should reach 7.5 billion euros in the
first-half of 2003. This amount is expected to be covered by
available credit lines and cash generated by operations.

France Telecom's full-year results will confirm the strong
increase in its operating profitability. For the third
consecutive year, annual pro forma EBITDA growth should exceed
10%.

(1) In order to permit a more meaningful comparison with the
first-half of 2002, pro forma information is presented which
restates the first-half 2001 results, using the same scope of
consolidation as in the first half of 2002. In particular, these
figuresare calculated to give effect, as of the first half of
2001, to the consolidation of the TP Group (TP SA and its
subsidiaries), Equant, Freeserve and Indice Multimedia, the
consolidation using the equity method of Telecom Argentina and
the effects of real estate sales.


VIVENDI UNIVERSAL: Rivals Vodafone's Bid on Cegetel
---------------------------------------------------
Vivendi Universal has offered Cetegel minority shareholders, BT
Group PLC and SBC Communications Inc., a bid similar to the
EUR12.4 billion tendered by Vodafone Group, AFX reports.

Cegetel is the telecom group that holds 80% of French mobile
operator SFR, a cash-generating business contested by both
Vodafone and Vivendi Universal. Vodafone already owns, directly
and indirectly, 32% of SFR.

In a previous TCR-Europe report, Vodafone was reported to have
negotiated with British Telecommunications PLC about buying the
latter's 26% stake in Cegetel. SBC Communications Inc. owns a 15%
stake in Cegetel.

Vivendi's decision on Cegetel has been the subject of speculation
for investors. Speaking on the possible sale of Vivendi's US
entertainment assets, Bear Sterns analyst Nick Bell said, the
company would create more value for shareholders if it sold its
American entertainment assets and use the proceeds to take
control of Cegetel.

According to Mr. Bell, Cegetel, the French phone company in which
Vivendi has a 44 percent stake, generates three times the cash
that the American entertainment assets did.  Owning a majority
stake in Cegetel would help Vivendi consolidate the company's
cash, he said.


CONTACT:  VIVENDI UNIVERSAL
          42 Avenue de Friedland
          75380 Paris Cedex 08, France
          Phone: +33-(0)1-71-71-10-00
          Fax: +33-(0)1-71-71-11-79
          Home Page:  http://www.vivendiuniversal.com


VIVENDI UNIVERSAL: Canal Plus Sells Subsidiary for EUR200 Million
-----------------------------------------------------------------
French pay-TV group Canal Plus, owned by Vivendi Universal, will
sell its interactive TV software subsidiary Canal Plus
Technologies to Thomson Multimedia for EUR200 million. The
proceeds of the sale are intended to ease the debt load of media
giant Vivendi Universal, according to Le Figaro.

Following the sale, Thomson Multimedia will decide whether to
continue with the US$1 billion lawsuit filed by Canal Plus
Technologies against rival NDS. Canal PLus accused NDS of
publishing secret codes in the internet that enable people make
their own pirate decoders, the report says.

Meanwhile, rumors have been growing that Swiss telecom company
Swisscom will acquire Vivendi's stake in Polska Telefonia
Cyfrowa, owner of Central Europe's biggest mobile phone network,
Era GSM. According to a report in the Warsaw Business Journal, if
the rumors are indeed true, it may follow that Elektrim will also
sell some of its shares in the Era network, of which both
companies have total rights of 51%.

Vivendi is under pressure to sell assets worth EUR10 billion
within the next two years in order to satisfy conditions set by
lenders being courted by the company for a EUR2 billion loan.  
Vivendi is struggling with EUR19 billion of debts, caused by the
US$77 billion acquisition spree of former Chief Executive Jean-
Marie Messier.


VIVENDI UNIVERSAL: Banks Want Repayment Before Granting Loan
------------------------------------------------------------
Vivendi Universal SA's banks want to be repaid with the proceeds
of the company's asset sales before they grant a EUR3 billion
(US$2.94 billion) loan to the media company, Bloomberg says.

With defaults soaring in record levels, banks are currently
imposing stricter conditions for loans.

The company is currently negotiating with Citigroup, BNP, Societe
Generale, Credit Agricole Indosuez, Credit Lyonnais SA, Credit
Suisse Group and Deutsche Bank AG, for a loan that would keep its
operation going until it is able to unload some businesses to
cover debts.

The media company is set to sell EUR10 billion of assets,
including its publishing unit, to lighten some US$19 billion
indebtedness.

Analysts fear that the company would no longer have cash by the
end of November if they cannot find a new source of financing.
Vivendi's Chief Executive Officer Jean-Rene Fourtou is set to
draft a plan for the company at a meeting on September 25.

An agreement for the loan may be reached next week, the bankers
said.  


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


DEUTSCHE TELEKOM: May Buy Polska Telefonia
------------------------------------------
The bankruptcy of Elektrim SA could result in Deutsche Telekom
buying control of Europe's top wireless operator, Polska
Telefonia Cyfrowa, according to Wall Street Journal.

Telekom is currently fighting the purchase against Vivendi in a
Vienna arbitration court. Both companies have contested control
of PCT for three years.  According to the report, if the court favors
Telekom's contest, the German company could acquire the stake at
book value.  

A 1996 agreement between Elektrim and Telekom, founders of
PTC, provides that in the case of Elektrim's bankruptcy, Telekom
could buy the former's stake at book value. But a deal made when
Elektrim partnered with Vivendi transferred almost all of
Elektrim's PCT shares into the Vivendi partnership.

Debt-laden Vivendi, on the other hand, has been peddling its PCT
interest for months. The ruling in favor of Telekom is predicted
to surely get in the way of a potential deal of the stake.


MOBILCOM: Expects to File Creditor Protection
---------------------------------------------
The German government has injected EUR400 million into MobilCom,
the mobile phone operator, which expects to file for insolvency
now that parent France Telecom decided to stop supporting the
company last week.

In a statement, France Telecom said it would not "seek to take
control of Mobilcom" and would "no longer respond to its requests
for financial support."

The German government, however, still believes in the "solid
base" of the company.  

Mueller disclosed that the regional public bank in Scheleswig-
Holstein would also provide the firm with EUR320 million and
state-owned development bank KfW would give the remaining EUR80
million. It is not clear whether the aid was a loan or subsidy.

Analysts on earlier reports, however, believe there is little
hope that MobilCom would survive as investors interested in the
company are nowhere to be found.

With the pending meeting with authorities, the filing may be
delayed until next week, says a spokesman from MobilCom.

France Telecom acquired a 28.5% stake in the company two years
ago to benefit from Europe's telecom market, agreeing to invest
in MobilCom's acquisition of new wireless licenses and network
equipment in the process. The expected earnings, however, did not
materialize, and France Telecom was left with a debt of EUR70
billion instead.

MobilCom's shares plunged from a high of EUR47.49 on July 31,
2002, to EUR0.90 in midday Frankfurt trading on Friday.


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


AEGON NV: Vereniging and Aegon N.V. Launches Restructuring
----------------------------------------------------------
-Vereniging Aegon's financial position will improve    
substantially

-Aegon n.v.'s (http://www.AEGON.com)equitycapital will be  
strengthened in a non-dilutive manner

-the Association to sell 350 million of its AEGON common shares:

-At least eur 1.5 billion of aegon common shares will be sold
directly by the association in an offering outside the us

-the balance of the shares will be sold to aegon and placed in
the market by aegon in an international offering

-no new aegon shares will be issued

-the Association will use the proceeds of the sale of the 350
million Aegon common shares to reduce its debt by at least EUR
1.5 billion; the remaining proceeds will be reinvested in AEGON
through an increase in paid-in capital on existing AEGON
preferred shares held by the association

-the voting interest of the association will reduce from approx.
52% to
approx. 33%, which better aligns voting rights and economic
ownership of aegon

The Association's Chairman, Prof. Pe Kohnstamm: 'We have taken
this decision to ensure, in light of current market conditions,
that the Association's debt is at sustainable and comfortable
levels and to create a more stable asset base. This approach has
the added advantage that it assists AEGON in a cost-efficient
strengthening of its capital base. The Association will continue
in its role as a stable and supportive long-term shareholder in
AEGON following the transaction.'

AEGON's Executive Board Chairman, Don Shepard said: 'We fully
support the Association's plans, which will also contribute to
the development of AEGON.

The benefits of this restructuring are threefold: AEGON gains a
stronger capital base to support its strategy; the free float of
our shares on the stock market increases substantially without
any dilution to shareholders and there will be a better alignment
of the capital and voting rights in AEGON.'

Benefits of the restructuring

Benefits to the Association

The Association will improve its financial position by reducing
its debt and securing a more stable asset base.

After the restructuring, the Association will have assets of
approximately EUR 4.5 billion (based on the closing share price
of the AEGON common shares on Euronext Amsterdam on 13 September
2002 of EUR 11.00) and debt outstanding of less than EUR 2.0
billion, for which a committed bank facility with a maturity of
three years has been arranged.

The Association is fully committed to AEGON as a long-term
shareholder and intends to maintain its remaining common share
ownership position in AEGON for the foreseeable future.

Benefits to AEGON

The financial restructuring of the Association will provide the
opportunity for AEGON to strengthen its capital base without
issuing new shares.

-AEGON's capital position will be substantially strengthened
through a non-dilutive increase in the paid-in capital on the
existing preferred  shares.

-AEGON will use the proceeds of the increase in the paid-in
capital on the existing preferred shares to strengthen its
capital base by reducing short-term borrowings and to support
growth. The proceeds will depend on the offering price and the
amount by which the Association's debt is reduced.

Based on the closing price of EUR 11.00 of AEGON common shares
and assuming the Association's debt is reduced by EUR 1.5
billion, the proceeds to AEGON would be approximately EUR 2.35
billion. This amount would be higher if the offering price is
higher or lower if the offering price is lower.

-There will be no dilution to AEGON's common shareholders, as no
new common shares will be issued.

-Corporate governance will improve as a result of the better
alignment of economic and voting interests arising from the
increase in the paid-in capital on the preferred shares.

-The liquidity of AEGON common shares will increase as a result
of an    increase in the free float from approx. 63% to approx.
88%, which should have a positive impact on AEGON's weighting in
stock market indices.

-AEGON's equity capital will increase to an appropriately strong
level in the current volatile financial markets.

Details of the restructuring

The Association will sell 350 million AEGON common shares. These
shares represent approx. 25% of AEGON's outstanding common
shares.

The offering of 350 million shares will consist of two
components:

-At least EUR 1.5 billion in net proceeds of AEGON common shares
will be sold directly by the Association in an offering outside
the United States in reliance on Regulation S of the United
States Securities Act.

-The balance of the shares will be sold to AEGON and placed in
the market by AEGON in an international offering, including a
public offering in the United States.

The transaction price at which AEGON purchases the shares from
the Association will be fixed at the offering price.

The paid-in capital on the existing 440 million preferred shares,
all held by the Association, will substantially increase. The
preferred shares pay an annual dividend on the paid-in capital
equal to the European Central Bank refinancing rate on the first
business day of the year plus 175 basis points. The dividend on
the preferred shares for the current year is 5%. After the
capital restructuring, the Association will own approx. 172
million of the outstanding common shares and control approx. 33%
of the voting rights. The Association has expressed its intention
not to sell any of its remaining AEGON common shares for the
foreseeable future. AEGON has agreed with the underwriters of the
offering that it will not issue any new shares for a period of 90
days, subject to certain exceptions (such as stock dividends and
company option plans).

Timing and other information

Marketing of the combined offering is expected to start on
Monday, 16 September 2002 through an accelerated bookbuild
offering with pricing of the combined offering expected to occur
no later than Tuesday, 17 September 2002. ABN AMRO Rothschild and
Morgan Stanley have been appointed Joint Global Coordinators and
Joint Bookrunners for the combined offering. A syndicate of banks
will be formed.

AEGON N.V. is the holding company of one of the world's ten
largest listed life insurance groups ranked by market
capitalization and assets. Close to 90% of the existing business
is in life insurance, pensions and related savings and investment
products. The Group is also active in accident and health
insurance, general insurance and limited banking activities. The
AEGON Group is a decentralized multi-domestic corporation.
Worldwide AEGON has over 25,000 employees.

Contact Information:

AEGON
Investor Relations                         
Group Communications
Telephone:+ 31 70 344 83 05                    
Telephone: + 31 70 344 83 44


KPNQWEST: KPN Acquires U.K. Portion of KPNQwest Network
-------------------------------------------------------
KPN has reached agreement with the receiver of KPNQwest in the
United Kingdom on the purchase of the UK part of the KPNQwest
network.  The fibreglass network of approximately 500 km connects
London with Paris and Amsterdam.

KPN took over the Dutch and German part of the KPNQwest Euro
rings earlier this summer and is still holding talks about the
network in Belgium and about a sea cable link with the United
States.


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


ELEKTRIM: Files Request for Declaration of Bankruptcy
-----------------------------------------------------
No 131/02 - Filing Request for the Declaration of the Company's
Bankruptcy Elektrim S.A. announces that on 13 September 2002, the
Company's Management Board filed a request for the declaration of
bankruptcy of Elektrim S.A. with the Warsaw District Court, XVII
Commercial  - Bankruptcy and Composition Division


POLISH STEEL MILLS: Undertakes Extensive Restructuring Plans
------------------------------------------------------------
The extensive restructuring efforts of the management board of
Polish Steel Mills on mills belonging to the holding is expected
to close three sections at the Sendzimira Steel Mill and cut
staff from 9,000 to 5,000 by the end of the year, CEEBIZ reports.

Some released workers will be transferred to new companies
created from the mill. PHS' restructuring also includes
elimination of intermediaries at points of sales in the steel
market.

According to the PHS president, the sections set for closure are
"structurally deficient."  PHS will continue liquidating other
unviable sections in other mills as well.  Katowice Steel Mill is
particularly mentioned, with two loss-making installations set
for phase out.  

Sendzimira Steel Mill produces 90 tons of goods per month out of
the 150 tons quota it needs to reach to break-even.  In August,
the mill surprisingly produced 140 tons of goods.


TELEKOMUNIKACJA POLSKA: Securities Trading Update
--------------------------------------------------
Pursuant to Sub-Para 81 point 2 of the Law on Public Trading in
Securities dated 21 August 1997 on the type, form and frequency
of disclosure of current and periodic information by issuers of
securities admitted to public trading (Official Journal No. 118
item 754 as amended)), the Management Board of Telekomunikacja
Polska S.A. (further referred to as 'TPSA') hereby informs that
on the 13 September 2002 TPSA has issued bonds under the Bond
Issuance Programme signed on !5 July 2002 ( see TPSA current
report no.58/2002) by the Bank Handlowy seated in Warsaw, BRE
Bank S.A. and ABN AMRO Bank (Polska) with an aggregate par value
of PLN 50,000,000 for a period of three months and the redemption
date is on 9 September 2002.

The aggregate par value of the bonds, denominated in PLN, being
issued amounts to PLN 100,000,000 and they were issued for a
period of 6 months with the redemption date on 18 March 2003. The
bonds were offered through private placements / non-public
exclusively on the territory of the Republic of Poland.

The bonds were offered in the form of non-material, discounted
(i.e. zero-coupon bond) and non-secured bearer bonds.

The bonds will be redeemed as per their nominal value and the
redemption will be executed at the Issuing Agent's office ie Bank
Handlowy S.A. seated in Warsaw. The bond rate was based on the
six months WIBOR index (WIBOR 3M). TPSA does not anticipate to
introduce the bonds to the public trading.

Contact Information:

Richard Moskalewicz
Telephone: (+48 22)661-74-26
Fax:(+48 22) 828-74-59
E-mail: emer@mailer.cst.tpsa.pl


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


LM ERICSSON: Signs MoU With France Telecom on Mobilcom Financing
----------------------------------------------------------------
Ericsson (http://www.ericsson.com)and France Telecom have signed  
an MoU (Memorandum of Understanding) covering the restructuring
of Ericsson's financing to Mobilcom.

Under the agreement, Ericsson and France Telecom will convert
Ericsson's outstanding customer financing to Mobilcom into a
convertible loan issued by France Telecom to Ericsson in the
amount of approximately EUR 444 million.

With the signing of the MoU, Ericsson and France Telecom
reconfirm their mutual close and long-lasting business relation.

The effect of the agreement will be that Ericsson no longer has
exposure to Mobilcom; future exposure will be to France Telecom.
The structure of the convertible loan is the same as that offered
by France Telecom to banks with credits to Mobilcom.

"Ericsson will continue to actively monitor its exposure under
this transaction in a diligent manner, including making adequate
risk provisions," said Sten Fornell, Executive Vice President &
Chief Financial Officer of Ericsson.

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

Contact Information:

Lotta Lundin
Investor Relations
Phone: +46 8 719 0899, +46 7887 628 707
E-mail: lotta.lundin@clo.ericsson.com


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


ABB LTD.: Chief Executive Rules Out Rights Issue
------------------------------------------------
Newly appointed ABB Ltd. Chief Executive Juergen Dormann rules
out rights issue at this time and will focus instead on
strengthening the company's capital base through operational
improvements.

Speaking at his first conference with analysts, Dormann says the
group aims an EBIT operating margin of 4-5% this year and flat
revenues.  The group will also kept its target of EBIT operating
margin of 9-10% by the year 2005.

He also ruled out selling the unit as a whole, exempting the
building services it plans to unload by the end of 2003.

Dormann who was appointed last week aims to speed up effective
implementation of the company strategy says a company statement.
He plans to continue to focus on core activities in the fields of
power and automation technologies.

Under his leadership, ABB Ltd. will take advantage of market
position, customer relationships, and sales organizations. ABB
Ltd. will also strive to rebuild investors' confidence.


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


ANTISOMA PLC: Preliminary Results for the Year Ended 30 June 2002
-----------------------------------------------------------------
Antisoma plc, the biopharmaceutical company developing new drugs
for cancer, today announces its preliminary results for the year
ended 30 June 2002.

Highlights

-Sustained progress in drug development pipeline
-Phase III (SMART) trial of pemtumomab in ovarian cancer on track
to report results in second half of 2004; patient recruitment
expected to be completed before end of 2002
-Recruitment completed for phase II trial of pemtumomab in
gastric cancer
-Promising clinical and pre-clinical results reported for DMXAA
-Continued diversification of pipeline
-Vascular targeting agent DMXAA acquired
-RNase and caspase added to targeted apoptosis programmes
-U.S. patent granted for Therex
-Successful Rights Issue raises GBP21.7 million net of expenses
-Revenues of GBP2.2 million (2001: GBP3.3 million)
-Losses of GBP13.2 million (2001: GBP8.7 million), in line with
expectations, reflecting continued progress on drug development
programmes

Commenting on the results, Glyn Edwards, Chief Executive Officer
of Antisoma, said:

'This has been a year of sustained progress on all fronts as we
continue to drive our products towards the market and to
strengthen our anti-cancer pipeline with promising and innovative
acquisitions. Our successful fund-raising in April, in difficult
market conditions, has further strengthened our ability to
maximize value from these products and reinforced our confidence
in the long-term success of the Company.'

Joint Statement from the Chairman and the Chief Executive:

In the past year, we have taken important steps to sustain our
progress towards profitability: raising additional funds to cover
future development costs, pushing forward our established
programmes and in-licensing new intellectual property for
development.

These achievements have been made despite increasing challenges
in our operating environment, notably the difficult conditions in
the financial markets, but also the need to meet tougher criteria
from regulatory authorities in preparing products for licence
submissions.

Against this background, we succeeded in raising GBP23.7 million
(GBP21.7 million net of expenses) of additional funds in a Rights
Issue. We also reacted positively to the need to meet an
increased statistical hurdle in our largest clinical trial, the
pivotal SMART study of pemtumomab in ovarian cancer. This was
required by the US Food and Drug Administration (FDA) following a
meeting in June 2001, and meant that we needed to recruit an
extra 120 patients into the trial. Recruitment of these extra
patients is on track to be completed by the end of 2002.

Our actions this year show our determination not to be deflected
from our core aim, which remains the generation of shareholder
value by effective development of drug candidates acquired as
promising early stage agents. We draw encouragement from the
approval in the US of the first radiolabelled monoclonal
antibody, IDEC Pharmaceuticals' ZevalinTM, which recently gained
a licence for use in non-Hodgkin's lymphoma.

Pipeline development

Over the past 12 months, we have made real progress in both our
clinical and pre-clinical development programmes. By June 2002 we
had four products in clinical development and an extensive pre-
clinical development programme.

Our lead product pemtumomab is a radiolabelled mouse monoclonal
antibody. The pivotal phase III trial of pemtumomab in ovarian
cancer (SMART) is expected to reach its patient recruitment
target by the end of this year, and we recently announced the
results of a new independent statistical analysis predicting the
completion date for the trial. This refined our previous
predictions, giving us a high degree of confidence that the trial
will finish in the second half of 2004. An interim analysis of
the SMART data will take place in approximately one year's time.
Our phase II trial of pemtumomab in gastric cancer completed
patient recruitment in May. We have now gathered three months of
post-treatment data for all patients in the trial, and we expect
to present these preliminary results during the fourth quarter of
2002.

Important milestones have also been achieved for our other
clinical products. Therex, a humanised monoclonal antibody, was
granted a US patent in December 2001, and the manufacture of Good
Manufacturing Practice (GMP)-grade material in preparation for a
further clinical study in breast cancer has now been completed.
TheraFab, a radiolabelled monoclonal antibody fragment, is being
evaluated in a phase I imaging trial in non-small cell lung
cancer; this trial completed patient recruitment in August 2002
and we expect to have results before the end of this year.

An important step in diversifying our pipeline was the in-
licensing in August 2001 of DMXAA, a small molecule that targets
established tumour blood vessels.

The drug has already completed two phase I studies and we will
shortly be starting a final phase I dose-finding study, which
will establish doses for use in combination phase Ib trials.
These will build on the positive pre-clinical results for DMXAA
in combination with chemotherapy agents that we announced in
January. Restriction of tumour blood flow following
administration of DMXAA has been visualised using magnetic
resonance imaging (MRI), and this is documented by a new paper
published this month in The Journal of Clinical Oncology.

Turning to our pre-clinical programmes, AngioMab, a radiolabelled
monoclonal antibody that targets a form of fibronectin associated
with new blood vessels, will be the next agent to advance from
pre-clinical to clinical development; we plan to meet with the
regulatory authorities in this regard before the end of 2002.
Meanwhile, our targeted apoptosis programme has been strengthened
by the in-licensing of caspase and the rights for the use of
RNase in combination with certain tumour targeting antibodies. We
have recently extended the collaborative agreement with the US
National Institutes of Health covering development work on
targeted RNase.

Data presented at the Annual Meeting of the American Academy of
Cancer Research (AACR) in April 2002 indicated that Thioplatin, a
platinum-based small molecule, has promising anti-tumour activity
against cell lines with acquired resistance to cisplatin. Further
work is required on the formulation of the drug before progress
to clinical trials, so Thioplatin will not be entering the clinic
during 2002 as originally anticipated.

Financial highlights

Revenues for the year ended 30 June 2002 totalled GBP2.2 million,
representing contributions to the Group's pemtumomab development
costs by Abbott Laboratories. Losses for the year increased to
GBP13.2 million from GBP8.7 million in 2001, in line with
expectations, primarily due to increased expenditure on
pemtumomab and other development costs. The increase in operating
expenses during the year, by 25% to GBP15.7 million, reflects our
commitment to further product development.

Losses per share were 10.8p in 2002, 9.3p in 2001 and 9.8p in
2000.  The loss per share figures for 2001 and 2000 have been
restated to take account of the bonus element of the Rights
Issue. The reduction in losses per share from 2000 to 2001,
despite increased losses, was a result of the issue of additional
ordinary shares.

In April 2002, amid challenging market conditions, we completed a
successful Rights Issue, raising GBP21.7 million (net of
expenses), providing the necessary capital to enable us to
continue development of our product candidates. The Rights Issue
was fully underwritten by SG Cowen and ING Barings and sub-
underwritten by existing and new institutional shareholders,
other shareholders, and the Company's Directors.

In January 2002, we announced amendments to our Development and
Licensing Agreement with Abbott Laboratories for pemtumomab. As a
result of these amendments, we will receive increased royalties
of 30% on all future sales of pemtumomab and slightly enhanced
milestone payments, in return for assuming Abbott's remaining
share of development costs.

Results of operations - quarter ended 30 June 2002
Revenues in the final quarter of the year were GBP0.7 million
(Q3: GBP0.4 million; the difference reflects the recognition in
Q4 of revenue linked to the completion of patient recruitment
into our pemtumomab gastric trial).  Net operating expenses for
the quarter were GBP4.4 million (Q3: GBP4.0 million) and included
investment in research and development for the quarter of GBP3.2
million (Q3: GBP3.2 million).  Losses were GBP3.5 million (Q3:
GBP3.6 million) and losses per
share were 1.7p (Q3: 3.7p)

Liquidity and capital resources

In the Rights Issue, completed in April 2002, Antisoma raised
GBP23.7 million before expenses (GBP21.7 million net) through the
issue of 118.5 million ordinary shares priced at 20p per share.

We ended the financial year with GBP18.9 million of cash and cash
equivalents (2001: GBP9.1 million; 2000: GBP4.4 million). Net
operating cash outflow for the year was GBP11.8 million  (2001:
GBP7.0 million; 2000: GBP7.2 million).  The net cash outflow from
operating activities is due principally to the Group's operating
losses, which have increased over this period as a result of
increased development activity.

The cash outflow from operating activities for the final quarter
was GBP4.0 million compared to GBP4.1 million during Q3.

Organisational changes

In September 2002 we appointed Dr Miroslav Ravic as Chief
Clinical Officer.  Dr Ravic joins from the Japanese
pharmaceutical company Eisai where he held a number of senior
positions, most recently Director of Research and Development,
Europe.  At Eisai he had global responsibility for oncology drug
development and drove the clinical development and regulatory
submissions for a number of major
products. Dr Ravic replaces Dr Tony Whitehead, and on behalf of
the Board we would like to acknowledge Tony's contribution to the
development of the Company.

In January 2002, we announced the appointment of Dr Lloyd Kelland
as Head of Laboratory based at our site at St George's Hospital,
London. Dr Kelland joined us from the UK's Cancer Research
Campaign, where he was Reader/Associate Professor and Head of
Drug Evaluation. Dr Kelland is an internationally recognised
authority in the fields of platinum and other small molecule
anti-cancer agents. In July 2002, he was also appointed Visiting
Professor in the Department of Bioscience at St George's Hospital
Medical School, London.

Outlook for the next 12 months

Over the next 12 months we will focus on advancing, as
appropriate, the development of our existing clinical and pre-
clinical product candidates. We look forward to completion of
SMART recruitment, and to the first findings from our phase II
study of pemtumomab in gastric cancer. We will continue to
develop partnerships to expedite the development and
commercialisation of our products.
We are now well placed to generate further value from our
pipeline over the coming period for the benefit of shareholders.

Antisoma enters the new financial year with confidence based on
our successful Rights Issue and the breadth of our clinical and
pre-clinical programmes.


Barry J Price                                         
Chairman                                              

Glyn O Edwards
Chief Executive Officer

As set out in the Joint Statement from the Chairman and the Chief
Executive the Company succeeded in raising additional funds of
GBP21.7 million (net of expenses) through a Rights Issue,
providing the necessary capital to enable us to continue
development of our product candidates. The directors are
confident that the Group has sufficient funds to meet the
requirements of the business for the forseeable future. The
financial information in this preliminary statement is therefore
prepared on a going concern basis.

During the year the Company issued 403,690 new ordinary shares at
a price of GBP0.867 per share, thereby discharging the company's
liability to pay a liquidated sum as part of the consideration
for intellectual property acquired.

Reconciliation to International Accounting Standards

The Company's consolidated financial statements have been
prepared under UK GAAP which differs in certain respects from
International Accounting Standards ('IAS').

The principal differences between UK GAAP and IAS that affect the
Group are set out below.

Preference shares

The Company's preference shares may be settled using equity
shares, with the number of equity shares varying in such a way
that the fair value of the shares that would be issued would be
equal to the obligation. These shares are classified as non-
equity shares under UK GAAP, but are classified as liabilities
under IAS. The effect of this difference is that, under IAS,
shareholders' equity is GBP4,332,000 lower than under UK GAAP in
each financial year presented, i.e. shareholders' equity under
IAS is GBP10,809,000 at 30 June 2002, GBP1,912,000 at 30 June
2001 and (GBP796,000) at 30 June 2000. There is no impact on the
loss for any of the years presented.

Cash flow statement

Under UK GAAP, cash does not include short term deposits and
investments that cannot be withdrawn without notice and without
incurring a penalty.  Such items are shown as short term
deposits.  Under IAS, deposits with a maturity of three months or
less at inception and which are readily convertible to a known
amount
of cash, are included as cash and cash equivalents. Additionally,
IAS requires only three categories of cash flow activity to be
reported: operating, investing and financing. The table below
sets out the effect of differences between UK GAAP and IAS and
provides the relevant disclosures required.

To view balance sheet: http://bankrupt.com/misc/Antisoma2.pdf

Contact Information:

Glyn Edwards
Chief Executive Officer
Raymond Spencer
Chief Financial Officer
Antisoma plc                                           
Tel: +44 (0)20 8799 8200


BRITISH ENERGY: To Miss September 27 Loan Deadline
--------------------------------------------------
Nuclear power generator, British Energy, will miss the
government's September 27 deadline to present a short-term
restructuring plan that would prevent the company from collapse,
the Telegraph reports.

According to the report, British Energy expects to have the
"proper structure and team in place" to pursue the needed
restructuring in the two-and-a-half-week time frame set by the
government.

Although the British government refused to promise support beyond
the deadline, the company may be forced to request for an
extension of the GBP410 million loan granted, says report
sources. Should the government refuse it the extension, however,
the nuclear generator will surely go into administration, a hugely
expensive process, according to authorities.

Administration would grant the Canadian government claim to
British Energy's 82% stake in Bruce Power business, which is
valued at GBP500 million.  It would also stop normal energy
trading, as requisite of financial guarantees would no longer be
available.

The British government is expected to demand a stake in the
nuclear generator rather than allow the facility to be withdrawn.

British Energy plans to hire another financial adviser to assist
Lazard in drafting a restructuring plan. The Government, on the
other hand, employed accountant Deloitte & Touche to keep track
of the GBP410 million loan.

The ultimate result of British Energy's going into administration
is the sale of electricity at spot prices, according to the
Telegraph.  A danger looms that overcapacity would result in
there being no buyers.  British Energy, which has been affected
by a collapse in the wholesale electricity prices, serves a
market which is 25% oversupplied.  


BRITISH ENERGY: Fitch Predicts Danger of Government Aid
-------------------------------------------------------
Fitch Ratings says that the loan given by the government to
British Energy may later on benefit from collateral, endangering
the interest of existing bondholders.

According to Isaac Xenitides, head of Fitch's European Energy
group, "If the new facility involves material collateral being
pledged to the U.K. government, a further negative rating action
on the senior unsecured bonds of British Energy is highly
likely."  British Energy's current ratings of 'B+/B' remain on
Rating Watch Evolving.

The documentation for unsecured corporate bonds in the U.K.
usually limits the amount to which secured indebtedness can be
raised.  According to the rating agency, the present documents of
BE has terms that may permit additional secured debt of up to
GBP250 million, if such debt has a maturity of not less than 15
years. A possibility could be that such secured indebtedness
could happen without equal and rateable security being provided
to existing unsecured bondholders.

Xenitides also foresees that existing creditors will likely to
restructure rather than file insolvency basing on the issues
linked to Bruce Power leasing arrangements, in particular.

Fitch mentioned that it is observing developments in the
negotiations regarding company's liabilities to the government-
owned fuel reprocessor BNFL Ltd. The agency sees a chance for the
contracts of this obligations to change, a movement that is
expected to affect British Energy's GBP2.1 billion liabilities as
well.

In case that British Energy faces break-up Fitch predicts the
government to either encourage "acceleration on BNFL's claims,
uses them to possibly take the company back into public
ownership, or alternatively takes a more pragmatic view on which
liabilities may be pursued, and which a liquidation value would
have to satisfy"



CLAIMS DIRECT: Investors Band to Claim Compensation
---------------------------------------------------
Claims management company, Judicia, has set up Claims Direct
Action Group tohelp shareholders to recover investment lost
after the personal injury specialist, Claims Direct, went into
receivership.  

According to Business Scotsman, the firm plans to assist Claims
Direct's 7,000 investors claim compensation for the drop in share
prices, pledging to bring the matter to court if necessary.

Judicia, headed by American lawyer Richards Field, says "Many
investors in Claims Direct purchased shares based on information
provided by the company. Judica believes this information may
have been false, misleading and inaccurate and that material
facts may not have been disclosed."

When Claims Direct's shares floated on the Stock Exchange in July
2000, its founders Tony Sullman and Colin Poole got away with
GBP50 million.  Shares were trading at 363p by September, and the
business was valued at GBP724 million.  Customers, however, were
only getting a fraction of their claim pay-outs, according to the
report.

The firm's shares last traded at 3.25p in July before the company
went into receivership.


MARCONI PLC: Announces Approval of Interim Security
---------------------------------------------------
Marconi plc announced that, further to its announcement on 29
August 2002, interim security has been granted over the balance
of the cash held in the lockbox accounts established in April
2002 (the 'Secured Cash'). The initial balance of the Secured
Cash (approximately GBP866 million) will fall as a result of cash
releases to be approved in accordance with an agreed cash flow
forecast.

As part of the grant of interim security, each of the members of
the informal ad-hoc committee of bondholders has undertaken to
enter into agreements to support the Restructuring.

Marconi confirms that it will make the payment on 16 September
2002 of accrued interest on Marconi Corporation plc's eurobonds
and other financial debt, contemporaneous with the payment of
interest due on Marconi Corporation plc's Yankee bonds. The
payment of accrued interest on the eurobonds will be made by way
of a payment to the eurobond trustee, to be held by the eurobond
trustee in accordance with the trust deeds constituting the
eurobonds pending completion of the Restructuring (as explained
further below).

Provision of interim security

On 29 August 2002, Marconi announced that it had concluded non-
Binding indicative heads of terms, which set out the principles
for the financial restructuring of Marconi and its wholly owned
subsidiary Marconi Corporation plc. In its announcement on 29
August 2002, Marconi indicated that it had agreed that interim
security would be granted to the Group's syndicate banks,
bondholders (including the bond trustees) and certain ESOP
derivative providers. This interim security has now been put into
place. The interim security has been provided to the Group's
syndicate banks and bondholders on pari passu basis, subject to
the arrangements in favour of ESOP derivative providers who
commit to support the Restructuring (see further details below).

The initial balance of the Secured Cash is approximately GBP866
million. Releases from the Secured Cash will be approved in
accordance with an agreed monthly cash flow forecast for the
period in which the interim security remains in place, so long as
no enforcement event occurs. The agreed monthly cash flow
forecast is consistent with the Marconi Group's ability to
satisfy its expected payment obligations arising in connection
with the Restructuring (as described in the announcement of 29
August 2002).

Provision has been made for the interim security to be released
in three circumstances:

* 15 business days after the launch of the schemes of arrangement
of Marconi and Marconi Corporation unless, by that time, an
aggregate of at least 39 % in principal amount of the Marconi
Corporation banks and bondholders (but not including those bonds
which are subject to the bondholder undertakings referred to
below) have undertaken to support the Marconi Corporation scheme
of arrangement.

Support from the above proportion of Marconi Corporation's banks
and bondholders, together with the bondholder undertakings
referred to below, would result in banks and bondholders with
approximately 49 % in aggregate principal amount of Marconi
Corporation's bank and bond debt having agreed to support the
Restructuring of Marconi Corporation. In order for the Marconi
Corporation scheme of arrangement to be approved, no less than 50
% of creditors present and voting at the scheme meeting must vote
in favor of the scheme and such creditors must represent no less
than 75 % by value of those creditors present and voting.

* If any of the Group's syndicate banks (or any affiliate
thereof) precipitates an insolvency event of any material Marconi
Group company.

* Prior to voting on the Restructuring, in circumstances tied to
the prospects of its successful completion.

The interim security is subject to various enforcement events.
Such events include material breach or termination of the
undertakings announced in April 2002 previously given by Marconi
and Marconi Corporation as part of the restructuring
negotiations; insolvency proceedings in relation to any material
Marconi Group company; failure to achieve the Restructuring
within the proposed timetable or the failure to meet the
sensitised business plan in a material and adverse manner (or the
likelihood of the same becoming evident). The occurrence of an
enforcement event would materially prejudice the ability of
Marconi Corporation to successfully complete the Restructuring.

Ancrane Limited, a wholly owned subsidiary of Marconi, which
holds eurobonds and Yankee bonds, will not benefit from the
interim security.

ESOP arrangements

Provision has also been made for linked arrangements to be
implemented for those of the ESOP derivative providers who commit
to support the
Restructuring ('participating ESOP derivative providers'). Up to
GBP145 million may be set aside pending determination of any
claims which the participating ESOP derivative providers may have
against Group companies other than Marconi. These arrangements
are in addition to the existing arrangements implemented as part
of the Group's recent disposal of its Strategic Communications
business (where GBP25 million was set aside in an escrow account,
as detailed below). Therefore a total of up to GBP170 million may
be set aside pending determination of any claims which the ESOP
derivative providers may have against Group companies other than
Marconi.

Under the ESOP arrangements:

* if the interim security is enforced or if the interim security
in favour of the banks and bondholders falls away in either of
the first two of the three security release circumstances
referred to in 'Provision of interim security' above, a rateable
portion (up to a maximum of GBP145 million) of the remaining
Secured Cash will be set aside pending determination of any
claims which the participating ESOP derivative providers may have
against Group companies other than Marconi; and

* when the Restructuring becomes effective, cash of up to a  
maximum of approximately GBP145 million is to be segregated
pending determination of the level of such claims (although the
claims themselves will be released in connection with such
segregation to allow the
Restructuring to proceed).

The participating ESOP derivative providers will lose these
rights if any ESOP derivative provider (or any affiliate thereof)
precipitates an insolvency event.

The arrangements in favour of the participating ESOP derivative
providers ('ESOP arrangements') provide for monies to be set
aside for the benefit of the participating ESOP derivative
providers only to the extent that it is subsequently found by a
court, or agreed between the relevant parties, that the
participating ESOP derivative providers would have been able to
recover amounts from existing and past subsidiaries of Marconi
Corporation under existing intercompany funding arrangements
relating to the Group's prior ESOP hedging arrangements.


The ESOP arrangements do not have the effect of favouring claims,
which the ESOP derivative providers might otherwise have against
Marconi under existing guarantees given by it in favour of the
ESOP derivative providers. Rather, the ESOP arrangements
implement a mechanism to resolve uncertainties as to whether and
to what extent Marconi, Marconi Corporation, the trustee of the
Marconi Group employee share option scheme or the participating
ESOP derivative providers have claims against operating and other
companies within the Marconi Group. Such companies are under the
ownership of Marconi Corporation and, structurally, any such
claims of the participating ESOP derivative providers, if
determined to be valid, may rank ahead of claims against Marconi
Corporation.

As part of the Group's recent disposal of its Strategic
Communications business, an additional GBP25 million was set
aside in an escrow account pending determination of any claims
which the Group's ESOP derivative providers may have against the
Strategic Communications companies. After the Restructuring has
become effective, a portion of any unused balance of this escrow
account will be paid into the ESOP escrow account created as part
of the Restructuring.

Support for the Restructuring

As part of the grant of interim security, each of the members of
the informal ad-hoc committee of bondholders have undertaken to
enter into agreements to support the Restructuring.

These undertakings may be terminated in circumstances where the
interim security may be enforced, or if the terms of the
Restructuring deviate from the Heads of Terms without the
approval of the Bondholder Committee.

In connection with the grant of the interim security and the
Bondholder
Committee undertakings to enter into agreements to support the
Restructuring, certain undertakings in relation to the interim
security have been given by Marconi Corporation in favour of the
Bondholder Committee (in addition to those announced in April
2002).

Payment of interest

In its announcement of 29 August 2002, Marconi indicated that as
part of the Restructuring, interest on Marconi Corporation's
financial indebtedness accrued to 15 October 2002 would be paid
as at that date. It was further indicated that, contemporaneous
with the payment of interest due on Marconi Corporation's Yankee
bonds on 15 September 2002, accrued interest to that date would
also be paid in relation to Marconi Corporation's eurobonds and
other financial indebtedness.

Instructions will be given for payment of interest on the Yankee
bonds (for value on 16 September), as 15 September is not a
business day.

Instructions will also be given for payment (for value on 16
September) of interest accrued to 15 September 2002 on the
eurobonds and other Marconi Corporation financial debt, even
though such interest is not yet due. Accrued interest paid in
relation to the eurobonds will be paid to the eurobond trustee to
be held by the eurobond trustee in accordance with the trust
deeds constituting the eurobonds, with the intention that it will
be distributed to the holders of the eurobonds upon completion of
the Restructuring. If the Restructuring were not to proceed, such
interest will be paid when due in accordance with the eurobond
trust deeds.

The interest payment to the eurobond trustee will not include the
accrued interest payable to Ancrane. Ancrane's portion of the
interest will be paid to a third party as custodian of the
relevant euroclear account. Ancrane will disclaim all rights to
the interest paid to the eurobond trustee.

A further payment of accrued interest on the Yankee bonds, the
eurobonds and other Marconi Corporation financial debt is
expected to be made on or about 15 October 2002 in respect of the
period from 15 September 2002 to 15 October 2002. As interest is
not expressly due under the Yankee bonds and eurobonds on 15
October, 2002, such further interest payments will be effected in
accordance with arrangements to be agreed with the relevant
trustee. Such interest payments are provided for in the approved
cash flow forecast referred to above.

Restructuring

Marconi and its advisers continue to work on completing
Restructuring documentation based on the principles set out in
the Heads of Terms. The formal documentation relating to the
Restructuring will provide further details of (i) the
distributions that the scheme creditors of Marconi and Marconi
Corporation will receive on completion of the Restructuring, (ii)
the schemes of arrangement to be implemented as part of the
Restructuring, (iii) the equity and warrants to be received by
shareholders of Marconi and (iv) the timetable for completion.
It is currently expected that definitive documentation will be
available during November 2002 and that the Restructuring will be
completed before the end of January 2003.

Contact Information:

Heather Green
Investor Relations
Marconi plc
Telephone: +44 (0) 207 306 1735
E-mail: heather.green@marconi.com


PPL THERAPEUTICS PLC: Announces Interim Report and Accounts 2002
-----------------------------------------------------------------
PPL Therapeutics plc (http://www.ppl-therapeutics.com)is pleased  
to report on the six-month period ended 30 June 2002.

-New Management team now in place

-Significant progress on recAAT

-New data on Fibrin I

-U.K. stem cell program to close

-Cash burn reduced during first six months of year

-Cash balances as at 30 June 2002 were GBP21.3 million

Half-Year Report 2002

With the recent appointment of Adam Christie as executive
director for Business Development following on from the
appointments this year of Geoff Cook and Lindsay Dunsmuir as CEO
and CFO respectively, the new executive management team at PPL is
now complete and in a position to address the challenges and
opportunities facing PPL in the future.

The new executive management team is continuing to refine and
implement the revised strategy outlined to shareholders in March
of this year positioning PPL's financial and management resources
behind its core recombinant proteins business.

The team is encouraged by the promise held within PPL's existing
products together with the prospect of developing a profitable
business by capitalizing on the skills and experience of its
talented workforce.

Product Review

Recombinant Alpha-1-Antitrypsin

Under the agreement, signed in August 2000, the clinical
development of recAAT is being undertaken in collaboration with
Bayer Corporation's Biological Products Division ('Bayer').  
Bayer manages and funds the clinical development and marketing of
recAAT. In turn, PPL is responsible for exclusive supply of
finished product.  PPL and Bayer are due to conduct clinical
trials for hereditary emphysema with the intention of
commercialising an aerosol formulation of transgenically-produced
recAAT worldwide.  PPL and Bayer are also collaborating on the
development of an aerosol recAAT for a second indication, cystic
fibrosis (CF).

At the beginning of 2002 PPL and Bayer announced a delay to the
recAAT programme in order to permit further work to be carried
out on a number of issues that could have caused the higher
number of drop outs than would have been expected in a Phase II
study carried out by Bayer in 2001.

It was agreed that the companies would look at route of
administration, dose, purity, and formulation related issues. PPL
and Bayer have been particularly aggressive in pursuing the
latter two aspects of this joint programme and have made
significant progress in developing an extraction process capable
of producing product of even greater purity. This work overcomes
one of the technical hurdles to the programme moving forward and
thereby significantly reducing the development risk. Bayer has
contributed substantial technical expertise and scientific
consultation and both parties are pleased with the results of
this work and plan to further review progress in the next
quarter.

It has always been the intention of the parties to develop AAT
for the treatment of both hereditary emphysema and cystic
fibrosis.  PPL and Bayer remain committed to the license and
launch of an aerosolised recAAT product.  The developments
reported above continue to support a launch date for the product
in 2007.

Fibrin Sealant

PPL's Fibrin I based sealant can be used in a whole range of
surgical procedures, such as to seal haemorrhages and leaks of
spinal fluid and air.  It is a unique product with strong patent
protection. Recent work on Fibrin 1 sealant has demonstrated
superior wound healing properties when compared to aleading,
currently marketed, fibrin sealant product. A new liquid
formulation has been developed which confers further significant
advantages with respect to ease of use.

PPL is initially developing a plasma-derived Fibrin I sealant as
this represents the fastest route to market. Based on regulatory
advice, PPL also believes the speed to market will be assisted by
its potential for approval as a device in Europe, which will
simplify the clinical trial programme.  PPL will subsequently
introduce a recombinant Fibrin I offering further competitive
advantage.  PPL is partnered with Smith & Nephew for orthopaedics
and wound healing. For the key haemostatis indication, PPL is in
partnering discussions with a number of other parties. However,
recent formulation developments and positive comparative data
have prompted PPL to evaluate the potential for further in house
development to optimise value prior to any commercial alliance.

Based on the product being approved as a device, PPL continues to
expect first approval in 2005.

Recombinant Bile Salt Stimulated Lipase ('recBSSL')

BSSL is a fat digesting enzyme produced by the pancreas also
found in human breast milk.  Such enzymes are vital to the proper
digestion of fats. The resulting products of fat digestion, fatty
acids, are then absorbed into the bloodstream where they play a
vital role in energy supply and the digestion of other nutrients.
Pancreatic insufficiency occurs when the pancreas is damaged and
poor fat digestion and absorption result.  recBSSL has the
potential to be used as an enzyme replacement therapy for a
number of conditions which include pancreatic insufficiency as
part of their etiology, for example chronic pancreatitis and
cystic fibrosis.  PPL is developing recBSSL for use in patients
with pancreatic insufficiency.

Poor fat absorption is also a common condition for pre-term
infants and as such PPL's recBSSL is also being investigated for
this indication. A study is underway to validate the clinical
approach in this difficult patient group.

PPL has successfully produced transgenic cows with the potential
to produce large quantities of recBSSL. These could be used to
produce the larger amounts of product required for the pancreatic
insufficiency indication. Milk from these animals is expected to
be produced for laboratory scale evaluation in Q4 of 2002.

The development programme supports a launch date of 2006.

Other Projects

PPL is in discussion with a number of companies concerning
feasibility studies on a number of other proteins and peptides.

Regenerative Medicine

As previously indicated to shareholders, PPL is in the process of
spinning out its Regenerative Medicine Business.  The
Regenerative Medicine Business comprises two distinct programmes.  
The first is PPL's xenotransplantation programme based at PPL
Therapeutics Inc.  This group was responsible for undertaking the
work on double knock-out pigs recently announced by PPL.  The
second programme is the stem cell research programme based in
Scotland.

PPL has been actively pursuing buyers for both of these
programmes (as a joint package or individually).  After a
thorough review of the UK stem cell programme, however, it has
become clear that no value can be extracted from this programme
at this time and, accordingly, it has been agreed that the
programme should now be closed. A number of patents have been
filed and these will be maintained and out-licenced where
possible.

The anticipated annualised cost saving resulting from the closure
is GBP0.7m per annum.

Discussions with interested parties in relation to the future of
the xenotransplantation programme are ongoing and PPL remains
committed to the spin-out of this programme by the end of 2002.

Contract Manufacturing

PPL plans to maximise its revenues by using its existing pilot
plant for the production of products for third parties.  PPL is
in discussion with a number of companies to exploit this
opportunity.

Manufacturing Plant Funding

The delay in commencing the phase III study for recAAT resulted
in a lapse of the funding package for the construction of a
large-scale manufacturing plant for the production of recAAT.  
PPL has extended this funding package for a further year.

Board Composition

With the appointment of Lindsay Dunsmuir as Chief Financial
Officer in May 2002 and Adam Christie as Business Development
Director this month the executive management team is now
complete. The Nominations Committee is now reviewing the
composition of the Board with a view to bringing in new non-
executive directors.

Financial Review

Revenues for the half-year were GBP0.1m with operating expenses
at GBP7.4m. The net loss for the period was GBP5.5m after net
interest received of GBP0.3m and provision for R&D tax credit of
GBP0.9m. Administrative expenses were GBP1.8m, a decrease of
GBP0.5m over the comparable period last year.  This is due to a
reduction in professional fees for the period.

The decrease in loss over the comparable period in 2001 was
GBP1.1m. This decrease was largely due to the reduction in
administrative expenses referred to above, an increase in net
interest receivable of GBP0.3m and a reduction in external
clinical trial costs of GBP0.4m.

Capital expenditure in the period was GBP0.2m.

Net cash outflow, before the use of liquid resources and
financing, for the period was GBP3.6m.  This included GBP1.5m
received in June 2002 in relation to PPL's R&D tax credit for the
year ended 31 December 2001. Cash and cash equivalent balances as
at 30 June 2002 were GBP21.3m.

The underlying recurring trading cash outflows of the Group
excluding advance payments made in connection with PPL's
Manufacturing Facilities Agreements and adjusting for the timing
of R&D tax credit cash receipts for the six months ended 30 June
2002 were GBP4.8m.

Net assets were GBP37.8m.  Included in net assets is a balance of
GBP7.3m in relation to prepaid fees in connection with PPL's
Manufacturing Facilities Agreements.  These Agreements have been
extended until February 2003 and the sums will be recoverable
under the terms of the Manufacturing Facilities Agreements once
the build commences.  If the Agreements were not to go ahead and
no other action was undertaken by PPL then these balances would
not be considered recoverable and would have to be expensed in
PPL's profit and loss account.

Included in creditors falling due within one year as at 30 June
2002 are liabilities of GBP1.4m payable in relation to PPL's
Manufacturing Facilities Agreements.  These liabilities were paid
in July 2002.

Current Trading Position

Current trading is satisfactory. The cash and cash equivalents
balance at 31 July 2002, the latest date to which unaudited
management accounts are available, was GBP18.5m. The cash burn in
the month of July allowed for the payment in relation to the
Manufacturing Facilities Agreements of GBP1.4m referred to above.

Outlook

PPL is now positioned to concentrate its resources exclusively on
its core business of recombinant therapeutic proteins.  A single-
minded approach to commercially developing these products and
securing partners to extract maximum value gives the Company its
best opportunity for success.

To view chart: http://bankrupt.com/misc/PPL3.pdf

Basis of Preparation

The interim report was approved by the Board of Directors on 16
September 2002.

The interim report has been prepared on a basis consistent with
the statutory financial statements for the year to 31 December
2001, except for the adoption of FRS 19, Deferred Tax, which has
been implemented in this period.  There is no effect on the
results in the period or prior periods since there is no deferred
tax provision.

The financial information contained in this report does not
constitute statutory accounts within the meaning of section 240
of the Companies Act 1985.  It is unaudited but has been reviewed
by the auditors.  Figures for the year ended 31 December 2001 are
abridged and derived from the full statutory accounts which carry
an unqualified auditor's report and which have been filed with
the Registrar of Companies.

The Group has reached agreement with a number of parties
regarding the funding of the proposed manufacturing plant, which
required completion of specified conditions precedent.  Although
certain of these conditions have not yet been met, the Directors
have agreed extensions of the deadlines to 28 February 2003 under
the funding agreements and the development agreement for the
manufacturing plant. Advance payments in relation to the funding
package have been made by the  Group totalling GBP7.3 million and
are included as recoverable within debtors. In the event that the
funding package for the design and construction of the
manufacturing plant is not concluded, or is concluded on
different terms, these advance payments may be irrecoverable.  
However, given that the funding agreements have been extended,
the Directors have prepared the financial information on the
basis that these advance payments are recoverable.  The Directors
have also considered the current cash flow projections and have a
reasonable expectation that the Company and the Group as a whole
have adequate resources to continue in operation for the
foreseeable future whether or not the current discussions are
concluded satisfactorily.  The interim accounts have therefore
been prepared on the going concern basis.

The Group is entitled to claim tax credits for certain research
and development expenditure.  The amount shown of GBP870,000
(2001 - GBP734,000) is an estimate of the tax credit receivable
for the six months ended 30 June 2002 plus the under provision of
the tax credit received for the year ended 31 December 2001.

The basic loss per ordinary share for the six months ended 30
June 2002 is based on the loss after taxation of GBP5,519,000
(2001 - GBP6,629,000) and on the weighted average number of
ordinary shares in issue and ranking for dividend during the
period of 118,454,485 (2001 - 52,881,423)

PPL Therapeutics is a UK listed biopharmaceutical company
involved in the application of transgenic animal technologies to
the development and production of human proteins for therapeutic
and nutritional applications. PPL's three lead products are AAT,
fibrinogen and bile salt stimulated lipase (BSSL).

Contact Information:   

Geoff Cook
Chief Executive Officer
PPL Therapeutics plc
Telephone: 020 7796 4133 16

Alistair Mackinnon-Musson
Philip Dennis
Hudson Sandler
Telephone: 020 7796 4133
Email: ppl@hspr.co.uk


WORLDCOM INC: Wants Lease Decision Period Stretched to Sept. 22
---------------------------------------------------------------
Worldcom Inc. and its debtor-affiliates are parties to 15,000
unexpired leases of nonresidential real property, including lease
agreements for office, storage spaces and points of presence, as
well as so-called co-location agreements, among others.  At this
juncture in the Chapter 11 process, the Debtors have not had a
sufficient opportunity to make final determinations regarding the
assumption or rejection of their Leases.

In light of the unprecedented size, complexity and demands of
these cases, Marcia L. Goldstein, Esq., at Weil Gotshal & Manges
LLP, in New York, says, it is unreasonable to require the Debtors
to make final determinations regarding the assumption or
rejection of all of the Leases on or before September 19, 2002.
Consequently, the Debtors ask the Court to extend the time within
which they may assume or reject the Leases through and
including September 22, 2003, without prejudice to their right to
seek further extension for cause shown.

According to Ms. Goldstein, the Debtors and their professionals
have been working diligently to identify all of the Leases
while, at the same time, working to administer these Chapter 11
cases and address a vast number of administrative and business
issues. The Leases pertain to wide-ranging segments of the
Debtors' business operations.

Ms. Goldstein tells the Court that the evaluation of the Leases
requires the Debtors to devote considerable time and effort to
carefully review the merits of each Lease.  The Debtors have
begun evaluating the economics of the Leases in the perspective
of the Bankruptcy Code to determine whether the assumption or
rejection of each of the Leases would inure to the benefit of
their estates.  The Debtors' decision to assume or reject the
Leases also will depend upon the review of their overall
businesses and an analysis of each Lease location and purpose.
Due to the extraordinary large number of Leases and the
complexity of their business operations, the Debtors' analysis
of the Leases will take a considerable amount of time.
Notwithstanding, the Debtors are attempting to make informed
determinations regarding the Leases as promptly as possible.

Given the importance of the Leases to the continued operations of
the Debtors, Ms. Goldstein believes that it is impossible for
the Debtors to make a reasoned and informed decision as to
whether to assume or reject each of the Leases within the
initial 60-day period specified in Section 365(d)(4) of the
Bankruptcy Code. Absent the relief requested, the Debtors may be
forced to prematurely assume the Leases, which could lead to
unnecessary administrative claims against their estates if the
Leases are ultimately rejected.  Conversely, if the Debtors
reject the Leases or are deemed to reject the Leases by operation
of Section 365(d)(4) of the Bankruptcy Code, they may forego
significant value in the Leases, thereby resulting in the loss of
valuable property interests that may be essential to their
reorganization.

Ms. Goldstein points out that the Court already has approved, on
an interim basis, postpetition financing for the Debtors which,
along with revenues from their ongoing businesses, will enable
the Debtors to continue to perform timely all of their
postpetition obligations under the Leases pending their
assumption and rejection determinations.  Accordingly, the
extension will not prejudice the lessors of the Leases.  The
Debtors propose that any lessor may request that the Court fix an
earlier date by which the Debtors must assume or reject its  
unexpired lease in accordance with Section 365(d)(4) of the
Bankruptcy Code.  The Debtors submit that, if a lessor requests
that relief from the Court, the Debtors will maintain the burden
of persuasion.

Ms. Goldstein asserts that a full and accurate analysis of each
Lease is critical to maximizing the value of the Debtors' estates
for the benefit all parties in interest. (Worldcom Bankruptcy
News, Issue No. 7; Bankruptcy Creditors' Service,
Inc., 609/392-0900)

                                    ***********

        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
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
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