/raid1/www/Hosts/bankrupt/TCREUR_Public/021203.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

                 Tuesday, December 3, 2002, Vol. 3, No. 239


                              Headlines

* F I N L A N D *

SONERA CORP: Telia Resolves to Issue New Shares and Warrants

* P O L A N D *

NETIA HOLDINGS: Terminates Agreement With Fitch Ratings

* S P A I N *

JAZZTEL PLC: Announces Completion of Debt Restructuring

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

CREDIT SUISSE: Fitch Affirms Low-B Ratings on 4 Classes of Notes
CREDIT SUISSE: S&P Assigns Indicative Rating to Issued Securities

* U N I T E D   K I N G D O M *

ABERDEEN ASSET: To Report Lower Pre-tax Profits in Results
ABBEY NATIONAL: Moody's Affirms Aa2/P-1/B+ Ratings
BRITISH ENERGY: Cameco Updates on Financial Guarantees
BRITISH ENERGY: Trade and Industry Comments on Restructuring
BRITISH ENERGY: Fitch Downgrades Ratings to 'C'/'C'
BRITISH ENERGY: Moody's Lowers Unsecured Bond Ratings to Ca
CABLE & WIRELESS: Offers Chairmanship to BG Group Head
CABLE & WIRELESS: Panama Court Orders Payment for Violation
CORUS GROUP: Whitehead Operations to Transfer in 2003
ENERGIS PLC: Freeserve Awards Exclusive Contract to Energis
ENERGIS PLC: Wraps up Final Phase of Board Restructuring
MARCONI PLC: To Deliver Calls Across Digital Subscriber Line
MARCONI PLC: Pays GBP280,000 Bonus to Ex-Finance Director
NTL: DIP Facility Extended as Plan Consummation Is Delayed
PEARL ASSURANCE: Parent to Axe More Than 1,000 Employees
TXU EUROPE: Dutch Unit Administrators to Discuss Plans


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


SONERA CORP: Telia Resolves to Issue New Shares and Warrants
------------------------------------------------------------
Telia has today announced the following:

As a part of the merger between Telia (SSE: TLIA) and Sonera
(HEX: SRA, NASDAQ: SNRA), the board of Telia has, based on
authorization given by the general meeting, resolved to issue 1
604 556 725 shares and 31 220 339 warrants for subscription of
shares in Telia.

It is expected that Telia shares and warrants will be available
on book-entry accounts for persons who have accepted Telia's
offer on Monday, December 9, 2002, when trading in Telia shares
and warrants 2002/2005:A on the Helsinki Exchanges and Telia ADSs
on NASDAQ National Market is intended to commence.

Sonera Corporation (HEX: SRA, NASDAQ: SNRA) is a leading provider
of mobile and advanced telecommunications services. Sonera is
growing as an operator, as well as a provider of transaction and
content services in Finland and in selected international
markets. The company also offers advanced data solutions to
businesses, and fixed network voice services in Finland and
neighbouring markets. In 2001, Sonera's revenues totaled EUR 2.2
billion, and profit before extraordinary items and taxes was EUR
0.45 billion. Sonera employs about 7,400 people. www.sonera.com


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


NETIA HOLDINGS: Terminates Agreement With Fitch Ratings
-------------------------------------------------------
Netia Holdings S.A. (WSE: NET), Poland's largest alternative
provider of fixed-line telecommunications services (in terms of
value of generated revenues), today announced that the agreement
with Fitch Ratings was terminated at the request of Netia.

Therefore, starting on 27 November 2002, Fitch Ratings will no
longer issue ratings for the notes issued by Netia Holdings B.V.,
Netia's Dutch financial subsidiary.

CONTACT:  NETIA HOLDINGS
          Anna Kuchnio (IR)
          Phone: +48-22-330-2061       


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


JAZZTEL PLC: Announces Completion of Debt Restructuring
-------------------------------------------------------
Telecommunications company Jazztel announced the completion of a
debt restructuring that will place 88% of the Spanish company into
the hands of former bondholders.

Jazztel says the Spanish stock market regulator approved on
Thursday the exchange of the company's EUR668 million high-yield
bonds for 457 million new shares and EUR75 million of convertible
bonds.  The new shares will be released in equal 25% portions starting
November 29.

The company warns that "the share price may be impacted due
to the excess of supply caused by the large amount of newly
issued shares coming into the market."

Jazztel, which accumulated debt expanding its network, is
expected to have EUR96.1 million of available cash at the end of
the third quarter following the restructuring.


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


CREDIT SUISSE: Fitch Affirms Low-B Ratings on 4 Classes of Notes
----------------------------------------------------------------
Credit Suisse First Boston Mortgage Securities Corp.'s Commercial
Mortgage Pass-Through Certificates, Series 2001-CK1 $93.8 million
class A-1, $149.0 million class A-2, $498.4 million class A-3,
and the interest-only classes A-X, A-CP, and A-Y are affirmed at
'AAA' by Fitch Ratings. In addition, Fitch affirms the $42.9
million class B at 'AA', the $45.4 million class C at 'A', the
$12.6 million class D at 'A-', the $12.6 million class E at
'BBB+', the $20.2 million class F at 'BBB', the $17.7 million
class G at 'BBB-', the $17.5 million class H at 'BB+', the $27.4
million class J at 'BB', the $7.5 class K at 'BB-', and the $7.5
million class L at 'B+'. Fitch did not rate classes M, N, and O.
The rating affirmations follow Fitch's annual review of the
transaction, which closed in March 2001.

The certificates are collateralized by 142 fixed-rate loans on
156 properties, and consist mainly of the following: office
(37%), retail (28%), and multifamily (19%). There are geographic
concentrations in California (33%), Texas (10%), and Pennsylvania
(7%). As of the November distribution date, the pool's collateral
balance has decreased 1.2% to $985.0 million from $997.1 million
at closing.

Key Commercial Mortgage, the master servicer, collected year-end
2001 financials for 100% of the pool balance. According to the
information provided, the YE 2001 weighted average debt service
coverage ratio increased to 1.47 times from 1.41x at issuance.
Currently, one loan (0.2%) is in special servicing. The loan is
secured by a multifamily property in Amarillo, TX and is
currently real estate-owned. Fitch expects any losses associated
with this loan to be fully absorbed by class O.

Fitch reviewed the performance of the credit assessed Stonewood
Center Mall loan (8% of the pool) and the 747 Third Avenue loan
(4%). The Stonewood Center Mall loan is secured by a leasehold
interest in a 930,000 square foot (sf) regional mall located in
Downey, CA. The center is anchored by JC Penney, Robinsons May,
Sears, and Mervyn's. The stressed DSCR for the trailing twelve
months ending June 2002 was 1.56x compared to 1.34x at issuance.
The 747 Third Avenue loan is secured by a leasehold interest in a
405,000 sf office property located in midtown Manhattan. The
largest tenants are Independent Television Network, Inc. (8% of
gross leasable area), BBC Worldwide America (8%), and Grey
Advertising (5%). The stressed DSCR for the trailing twelve
months ending September 2002 was 1.63x compared to 1.58x at
issuance. Both loans had an investment grade credit assessment at
issuance. Based on their stable to improved performance, Fitch
has maintained their investment grade credit assessments.

Fitch will continue to monitor this transaction, as surveillance
is ongoing.


CREDIT SUISSE: S&P Assigns Indicative Rating to Issued Securities
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned an indicative rating
of 'BBB+' to the mandatory convertible securities (MCS) to be
issued by Credit Suisse Finance (Guernsey) Ltd. and guaranteed by
Credit Suisse Group.

The securities will be mandatorily redeemed in registered common
shares of CSG three years after the issue date, and will pay a
fixed coupon to be determined at the time of sale, plus a
floating coupon equal to the common dividend paid by CSG.

As such, Standard & Poor's placed the indicative rating to
reflect credit risk associated with the receipt of the fixed
coupon during the three years prior to redemption.

The rating agency noted that the fixed coupon of the MCS will not
be payable in case CSG falls below the minimum capital
requirements of the Swiss Federal Banking Commission.

CSG plans to raise between SFR1 billion and SFR1.25 billion from
the placement of the MCS.  Standard & Poor's believes that the
proceeds of this placement will enhance the capital strength of
CSG.


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


ABERDEEN ASSET: To Report Lower Pre-tax Profits in Results
----------------------------------------------------------
Fund manager Aberdeen Asset Management is expected to report a
plunge of 20% in pre-tax profits and a dividend cut of at least
50% in its full-year results, says The Scotsman.

The group is set to post pre-tax profits of GBP40 million and a
per share dividend of half the 5.75p (total payout of GBP11.7
million) it reported last year.

The company's chief executive, Martin Gilbert, is also expected
to announce bids of about GBP120 million for its property arm--an
asset considered as one of the few priced businesses of AAM.  The
fund manager plans to float the property business next year,
expecting to raise up to GBP85 million.

The company struggled after four of its 19 trusts collapsed.  Its
Aberdeen Fund of Investment Trusts will be formally wound up this
week.  

The FSA is currently investigating the firm in relation to its
involvement in the split capital scandal.


ABBEY NATIONAL: Moody's Affirms Aa2/P-1/B+ Ratings
--------------------------------------------------
Moody's Investors Service affirmed the Aa2/P-1/B+ ratings of
Abbey National following the announcement of the bank's "Pre-
close" statement.

The statement says the bank would take substantial provisions and
other charges in relation to its wholesale banking business and
valuation of its Life assurance activities.

The rating agency affirms that the measures are according to the
guidance it declared to the market.

The move, according to Moody's, will "refocus the bank on retail
banking and insurance, while substantially reducing its wholesale
banking and treasury-related activities."

Following this plan, Moody's expects Abbey National to become
inherently less risky, with a more predictable earning profile.

The rating agency counts on the bank's retail banking and
insurance franchise to determine its ratings.

Moody's, however, warns of difficulties in retaining customers
and product lines in its wholesale and treasury activity.


BRITISH ENERGY: Cameco Updates on Financial Guarantees
------------------------------------------------------
Cameco Corporation (NYSE:CCJ)(TSX:CCO) confirms that the
U.K. government has agreed to remove the financial guarantee
obligation previously placed on Bruce Power, which was a condition
of the government's interim funding for British Energy plc.

Under its original 2001 investment agreement, Cameco had agreed
to provide financial guarantees up to a maximum of US$102 million
as part of its 15% ownership obligations under the Bruce Power
partnership.  The guarantees include the assurances required by the
Canadian Nuclear Safety Commission and the guarantees needed for
the power purchase agreements and the lease agreement with Ontario
Power Generation.

To facilitate the removal of the government-imposed guarantee on
Bruce Power and to resolve its dispute concerning the validity of the
guarantee, Cameco has committed to temporarily increase its financial
guarantee exposure related to Bruce Power from the previous maximum
of US$102 million to approximately $125 million.

Under separate agreement with the government, Cameco's
commitment to temporarily increase its financial guarantee
exposure will lapse upon the successful negotiation of changes to
Bruce Power's ownership. These changes may include an increase in
Cameco's interest in Bruce Power. If negotiations are
unsuccessful, the commitment will lapse December 16, 2002, at
which time the total maximum guarantee exposure would revert to
the previous level of US$102 million.

British Energy plc, is the majority owner in Bruce Power with
82.4%. Cameco owns 15% of Bruce Power and the two unions
representing employees hold the remainder.

Cameco, with its head office in Saskatoon, Saskatchewan, is the
world's largest uranium supplier. The company's uranium products
are used to generate electricity in nuclear energy plants around
the world, providing one of the cleanest sources of energy
available today. Cameco's shares trade on the Toronto and New
York stock exchanges.

CONTACT:  CAMECO CORPORATION
          Investor Inquiries
          Bob Lillie
          Phone: 306/956-6639
          Fax: 306/956-6318  
          Home Page: http://www.cameco.com


BRITISH ENERGY: Trade and Industry Comments on Restructuring
------------------------------------------------------------
Since September the Board of British Energy has been drawing up
a plan for the solvent restructuring of the company.

The government, having assessed the robustness of the plan with
its advisers, has agreed, subject to conditions, to support this
plan.

The company announced that it will:

- continue to make payments to a fund which is used to pay for
the costs of decommissioning its power stations;

- give the fund AGBP275million of bonds in the company; and

- surrender to the fund 65% of its available cash each year.

The government will underwrite these arrangements to ensure
safety and environmental protection. In addition the government
has recognized that if this restructuring is to work, it must
contribute significantly to the company''s AGBP2.1 billion of
historic nuclear fuel liabilities managed by BNFL which extend to
2086. The cost to the government will average AGBP150-200 million
per annum for the next 10 years and fall thereafter.

If the company does very well, surpluses from BE''s contribution
to the decommissioning funds will help meet these costs. The
government will review the way these contracts are managed as
part of the creation of the Liabilities Management Authority.

For British Energy''s plan to succeed, the company will have to
secure: agreement by its existing major financial creditors to a
temporary freeze on payments and subsequently a significant write
down in the value of what they are owed; the successful
completion of the sale of the company''s North American
operations; and the implementation of a new trading strategy to
reduce exposure to wholesale electricity prices.

Agreement in principle with its major financial creditors must be
achieved by mid February. The government will then notify the
restructuring plan to the European Commission under state aid
rules. The Commission''s decision would then be expected during
2004.

The Government is prepared to continue to fund BE''s operations
while the restructuring plan is agreed with creditors. The
existing credit facility will be extended to 9 March 2003 but the
existing ceiling of Ao650m will not be increased. Ao382m of this
facility had been drawn down by 27 November.

The Trade and Industry Secretary Patricia Hewitt intends to make
a statement to Parliament this afternoon.

The government's overriding priorities have always been to
ensure nuclear safety and security of electricity supplies. This
restructuring package is a pragmatic approach that should ensure
that these aims are met.  It is now up to the company and its financial
stakeholders to determine British Energy's future.

If BE's plan is not delivered, then its Directors may decide that
administration is the only option. The government has planned for
this contingency and will act to protect its key objectives of
nuclear safety and security of supply.


BRITISH ENERGY: Fitch Downgrades Ratings to 'C'/'C'
---------------------------------------------------
Fitch Ratings downgraded the Senior Unsecured and Short-term
ratings of British Energy plc to 'C'/'C' from 'B-'/'B' following
the announcement of the company's restructuring plans.

At the same time, Fitch removed the outlook of the rating from
Rating Watch Evolving to Rating Watch Negative.

Commenting on the issuance of as much as GBP425 million new bonds
in exchange for existing obligations totaling GBP1.3 billion,
under the restructuring plans, Fitch says: "the exchange offer is
considered coercive and its terms impose a considerable loss of
original principal."

The swap is considered a de facto event of default.

The ratings were placed at 'C' to reflect the need for the plan
to be approved by a number of parties, including bondholders and
the European Commission.

Fitch said the rating will remain on Watch Negative until the
approval of formal standstill arrangements necessary for the
restructuring process are approved.  

The proposed standstill arrangements provides that BE will pay
interest and not principal on amounts owing to its creditors, and
therefore its GBP110 million bonds, which mature March 25, 2003,
will not be repaid when due.

The plan is expected fully implemented by mid 2004, and the
approval is due no later than February 14, 2003.


BRITISH ENERGY: Moody's Lowers Unsecured Bond Ratings to Ca
-----------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured bond
ratings of British Energy to Ca from Caa1, and the company's
senior implied rating to Caa3 from B2, following the company's
announcement of its restructuring proposal.  

The plan is expected to result to a forced exchange and
significant losses for par bondholders.  It is also understood
that failure of the creditors to give consent to the
restructuring proposal would lead to the insolvency of the
nuclear generator--an event that could lead to even greater
losses, says Moody's.

The plan proposes a restructuring of the company's capital
structure with an issuance of GBP700 million of long dated bonds,
up to GBP275 million of which will be issued to the Nuclear
Liability Fund, and up to GBP 425 million will be issued to
certain financial creditors in return for their existing claims.
In addition, creditors may receive new ordinary shares.

Under the scheme, Moody's predicts par creditors to lose
generally about 60-70%.  

Moody's says the proposed restructuring constitutes distressed
exchanges, in which the issuer offers bondholders a new security
or package of securities that amount to a diminished financial
obligation.

The rating agency also warns that failure to reach agreements on
standstill arrangements with the company's financial creditors by
February 14, 2003 could also lead to insolvency.

All ratings have been kept on negative outlook to reflect the
uncertainties on investment recovery levels.


CABLE & WIRELESS: Offers Chairmanship to BG Group Head
------------------------------------------------------
Cable & Wireless Plc has offered the current head of BG Group,
Richard Giordano, the chairmanship of the telecommunications
company, according to the Observer.

The present chairman of Britain's third-largest natural gas
producer declined to comment, says the report.

The Web site manager is looking for a new chairman after David
Nash, the deputy chairman who would supposedly assume the
position in January indicated to resign from the board by year-
end.

Mr. Nash's resignation follows the company's announcement of the
outcome of the strategic review of Cable & Wireless Global, and
the report of its interim results, which revealed a GBP4.5
billion (US$7 billion) loss.  

CONTACT:  Investor Relations
          Louise Breen
          Phone: +44 (0)20 7315 4460
          Caroline Stewart
          Phone: +44 (0)20 7315 6225


CABLE & WIRELESS: Panama Court Orders Payment for Violation
-----------------------------------------------------------
A court in Panama ordered telecommunications giant Cable &
Wireless to pay Kamasu Investments and Cibertec International
US$66 million for breaching the confidentiality of a contract.

The two companies filed a US$126 million complaint alleging
that the British company permitted the distribution of exclusive
anti-fraud software and equipment.

Cable & Wireless, which controls Panama's telecommunications
industry through a 49% holding in the former National
Telecommunications Institute, said it will appeal the court's
decision.  According to Dow Jones, the company says the action
"damages the good name of Panama's justice system."

Cable & Wireless is currently spending millions to modernize its
facilities ahead of the country's opening of the telecommunications
market to competition.


CORUS GROUP: Whitehead Operations to Transfer in 2003
-----------------------------------------------------
Corus will relocate its Special Strip (CSS) operations from
Whiteheads, Newport, South Wales to its Llanwern site some
five miles away, in a move designed to improve the prospects for
long-term viability and secure employment.

The CSS operations at Whiteheads and the Cold Mill employ
105 people. The equipment and employees will transfer to the
Llanwern site by the end of 2003.

Managing Director Rob de Brouwer said: "The relocation to Llanwern
provides the best option for the future growth and development of
both operations and is a significant industrial development
opportunity for the Llanwern site."

With the expected improvements in processing, materials handling
and logistics, Corus believes that the transfer will provide the
best strategic fit for growth and future development.

Corus will invest around o4 million in the move. Regrettably, the
reorganisation is expected to result in a net reduction of up to
20 Corus jobs, although the company hopes to avoid any enforced
redundancies. Every effort will be made to find suitable
alternative employment for those affected, and full consultation
with employees and trade unions will take place.

Corus Special Strip is a business unit within Corus with a
diversified product range but is primarily engaged in the
production of specialized hot and cold rolled strip products for
a range of end-users. As well as sites in the U.K., CSS has sites
in the USA, Germany and Spain.

CONTACT:  Simon Jenkins
          Manager Media and Public Affairs
          Corus Marketing and Communications
          Newport
          Phone: 01633 755086


ENERGIS PLC: Freeserve Awards Exclusive Contract to Energis
-----------------------------------------------------------
Energis and Freeserve have agreed to renew a multi-million pound
contract whereby Energis is to provide Freeserve with networking
and managed internet support services.

Under the deal Energis remains the exclusive provider of metered
and unmetered narrowband internet access to Freeserve's 2.5
million customers.

The continuation of the partnership reflects the strength of
Energis' technical capability and service levels in supporting
Freeserve's rapidly growing business.

Archie Norman, Chairman of Energis, said: "Earlier this year
commentators were claiming that Energis would lose its very
sought after customer base. In fact, we have now extended our
contracts with major customers and added new accounts like Tesco
and the Crown Prosecution Service. Freeserve is a very demanding
and rapidly growing customer with outstanding technical
capability. We are delighted our partnership will be continuing.
This, together with our management changes, completes the first
phase in the renewal of Energis."

Eric Abensur, Chief Executive Officer of Freeserve, said: "We
comprehensively reviewed our network and platform hosting
arrangements across a range of criteria, and Energis responded
well to each of these. By demonstrating their flexibility and
support for our business, Freeserve felt confident in extending
its contract with them for a further two years."

CONTACT:  Marta Judge
          Energis
          Phone: +44 (0)20 72065800
          E-mail:mjudge@energis.co.uk

         Jenny Scott
         FreeserveTel: +44 (0) 207 553 7566
         E-mail: jennifer.scott@freeserve.com


ENERGIS PLC: Wraps up Final Phase of Board Restructuring
--------------------------------------------------------
Energis announced the final phase of its board restructuring with
the appointment of Sir Ian Gibson CBE and Dr John Wells as Non-
Executive Directors to the board of Chelys, the holding company
of Energis operations in the U.K. and Ireland. They will join
five other board members, which include Energis Chairman Archie
Norman and Chief Executive John Pluthero.

Sir Ian Gibson CBE is former President of Nissan Europe and
serves on the board of of BPB plc, GKN plc and Northern Rock plc.
He is also a member of the Court of the Bank of England.

Dr John Wells has a PhD from Harvard Business School where he
teaches business strategy. He was previously Chief Financial
Officer at PepsiCo and Executive Director of Thomson Travel Group
plc.

Archie Norman, Chairman of Energis, said: "We now have an
outstanding non-executive team to match an outstanding executive
team under John Pluthero. This demonstrates the strength of our
ambition for the recently recapitalised Energis."

About Energis (www.energis.co.uk)
Energis is a leading provider of high-value telecoms and internet
services to major companies and public institutions in the U.K.
and Ireland. It offers a portfolio of data, voice, call centre
and internet services. Around 1 billion call minutes a week are
routed over the Energis network and Energis hosts more than
25,000 commercial websites. Major customers include the BBC,
Boots, Freeserve and Tesco.

Biographies

Sir Ian Gibson CBE Sir Ian Gibson, 55, is currently a Non-
Executive Director of BPB plc, GKN plc and Northern Rock plc and
is also a member of the Court of the Bank of England. He was
formerly President of Nissan Europe, where he led the structuring
of the Renault/Nissan Alliance in Europe, and was until 1999 a
Non-Executive Director of Asda plc. He became a CBE in 1990 and
was knighted in 1999.

Dr John Well Dr John Wells, 50, has a PhD from Harvard Business
School where he teaches business strategy. Prior to this, he held
a variety of executive management roles at PepsiCo, Thomson
Travel Group plc, Frito-Lay International and Netdecisions, a
global strategy and technology consultancy. John graduated from
Oxford with a first class honours degree in Nuclear and Solid
State Physics and also has an MBA from Harvard Business School.

CONTACT:  Marta Judge
          Energis
          Phone: +44 (0)20 7206 5800
          Mobile: 07800 021810
          E-mail: mjudge@energis.co.uk


MARCONI PLC: To Deliver Calls Across Digital Subscriber Line
------------------------------------------------------------
Marconi (MONI) has reached an agreement with Paradyne Networks,
Inc. (NASDAQ: PDYN) that will allow operators to deliver up to 30
telephone calls across a standard Digital Subscriber Line (DSL),
as well as their existing fast-Internet services. The Company has
signed a reseller agreement with Paradyne to include the
Jetstream. CPX-1000 Media Gateway family of products within the
Marconi Access Hub and Distributed Multiservice Platform (DMP)
solutions. The agreement opens new revenue streams for operators
selling services to Small and Medium-sized Enterprises (SME) and
high-use residential subscribers.

Paradyne's media gateway provides Marconi with a VoATM/VoIP
solution that seamlessly integrates the access and core networks.  
This solution will give service providers one point of contact
for all service issues and enables Marconi to respond positively
to tenders for the new derived-voice services.

"Marconi has chosen to partner with Paradyne because of the
proven robustness of its voice gateway platform," said Graham
Sykes, Marconi's Vice President, Marketing for Broadband Systems
(ETSI).

"Paradyne is a proven leader in this industry and has built up a
high-degree of field-based deployment experience. Marconi is
particularly excited about the inherent ability of the Paradyne
voice gateway to deliver ATM/IP-based voice traffic to both
existing Time Division Multiplexing (TDM) based Central Office
switches and IP based softswitch environments."

The voice gateway generates a potential for Marconi to offer
service providers end-to-end VoDSL, VoATM and VoIP solutions.
Such solutions contain a number of network elements including:
Integrated Access Devices (IADs) situated at the subscriber
premise; Digital Subscriber Line Access Multiplexers (DSLAMs);
voice gateways and central office switches. This allows Marconi
to offer its customers, in one voice gateway chassis, a
standards-based migration path to the world of IP. It also
enables the Company to offer service providers its SoftSwitch
product in the context of an end-to-end voice solution.

"Europe is a very strategic market for Paradyne and Marconi's
solid European presence will support our growth plans in this
region," said Ken Hood, Vice President and General Manager,
Broadband Voice Solutions, Paradyne. "Many large carriers are
moving forward with packetised voice plans due to the tangible
cost savings involved. We continue to enhance our platform's
applications to ensure we can support the high margin services
plans of our customers with VoDSL and VoIP."

About Paradyne
Based in Largo, Florida, Paradyne is a leading developer of
carrier-class, high-speed network access solutions for broadband
voice, data and video. Paradyne markets its award-winning
GranDSLAM and BitStorm DSL systems, ReachDSL and EtherLoop.
products, Jetstream. Media Gateway systems and FrameSaver.
Service Level Management systems to service providers and
business customers worldwide. More information may be obtained by
visiting www.paradyne.com or by calling 1-800-PARADYNE or +1-727-
530-8623.

GranDSLAM, BitStorm, and ReachDSL are trademarks of Paradyne
Corporation. Jetstream, EtherLoop, FrameSaver, and Paradyne are
registered trademarks of Paradyne Corporation.

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

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

CONTACT:  MARCONI PLC
          Patrick Murphy
          Phone: +44 (0) 115 906 4151
          E-mail: patrick.murphy@marconi.com


MARCONI PLC: Pays GBP280,000 Bonus to Ex-Finance Director
---------------------------------------------------------
Cash-strapped phone equipment maker, Marconi, agreed to pay
GBP280,000 bonus to ousted finance director Steve Hare who will
leave the company in January.

The bonus is part of a staff retention package with each tranche
triggered during the restructuring of the company.  

Under the previous agreement, Mr Hare was in line to collect
GBP140,000 bonus as part of the series of "retention payments"
with a further GBP140,000 to be paid out three months later.

As Marconi agreed to pay Mr. Hare both tranches of the bonuses
the day he leaves, the completion of the restructuring process of
Marconi would be moved from January to March.

Mr. Hare will also receive around ten months of salary, estimated at
about GBP312,000, says The Scotsman.  Mr. Hare became chief
financial officer in April 2001.  


NTL: DIP Facility Extended as Plan Consummation Is Delayed
----------------------------------------------------------
NTL Incorporated (OTC BB: NTLDQ; NASDAQ Europe: NTLI) said
Friday it expects to reach an agreement in principle on the
final terms of the various arrangements necessary for NTL to
consummate its plan of reorganization with the providers of the
exit facility and the steering committee of the banks in the
very near future. In the light of this agreement, the DIP
facility has been extended.  All parties expect the effective
date to occur in the very near future.


PEARL ASSURANCE: Parent to Axe More Than 1,000 Employees
--------------------------------------------------------
Australian parent, AMP, is set to undertake massive job cuts that
would eliminate the entire U.K. sales force of its struggling
unit, Pearl Assurance, says The Scotsman.

AMP is expected to slash over 1,000 jobs at the department that
AMP Chief Executive Andrew Mohl considers "economically
unsustainable."  The job cuts include more than 50 posts in
Scotland.

An AMP spokesman dismissed the reports as "speculation", but the
report proceeded to say that the spokesman suggested the company
doubts the operability of the sales workforce "at its present
format".  

According to the report, AMP has hinted the unjustified costs of
employing the workforce for Pearl's slackened business
activities.

The job cuts, which are expected to be officially announced
Wednesday, is part of the updating of all of U.K.'s 7,000 staff
following a strategic review.


TXU EUROPE: Dutch Unit Administrators to Discuss Plans
------------------------------------------------------
The administrators of TXU Europe and its Dutch energy trading
arm, TXU Europe Energy Trading BV, are scheduled to study and
draft a plan for the unit's future, says Dow Jones.  

TXU Europe recently succumbs into bankruptcy after its U.S.
parent, TXU Corp, abandoned the energy company.

JC Rosenberg-Polak from Dutch law firm Salomons says his party,
which includes one bankruptcy specialist, had made reviews in
Geneva and is now in the process of drawing out plans.  

He disclosed that the party will discuss inter-company
connections, saying "As far as we know now, there are very many
inter-company relations at all levels and through all countries,
all jurisdictions, between the U.K. group and the Continental
group."

The attorney noted that creditors of the Dutch unit, which posted
negative assets of US$79.5 million in 2001, were mainly inter-
company.  The creditors are within TXU group, he said.  This
includes U.K. group and the Continental group.  


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

       S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso and Ma. Cristina Canson, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


                  * * * End of Transmission * * *