/raid1/www/Hosts/bankrupt/TCREUR_Public/031014.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, October 14, 2003, Vol. 4, No. 203


                            Headlines


C Z E C H   R E P U B L I C

DAILY INPULS: Halts Circulation Due to Dwindling Cash, Lawsuit


F R A N C E

SUEZ SA: Trims Down Shareholding in UMICORE by a Third
VIVENDI UNIVERSAL: Ratings Under Review for Possible Upgrade
VIVENDI UNIVERSAL: Insists on Withholding Messier's Pay Package


G E R M A N Y

DEUTSCHE BAHN: Privatization to Go Ahead as Finances Improve
ENERGIE BADEN-WUERTTEMBERG: Mulls Four-day Work Week to Cut Cost
WESTLB AG: Chairman Ringel to Resign March Next Year


I T A L Y

FIAT AUTO: Tough Challenges Ahead for New Chief
TELECOM ITALIA: Board OKs EUR10 Billion Commercial Paper Program


L U X E M B O U R G

IFCO SYSTEMS: Successfully Closes EUR110 Million Bond Issue


N E T H E R L A N D S

EPIQ N.V.: Blames Strikes for Liquidation of French Subsidiary
HAGEMEYER AG: Buys Time to Carve out Restructuring Plan


N O R W A Y

PAN FISH: Nordea Ups Shareholding to 51.38%
PETROLEUM GEO-SERVICES: Choosing of Distributions Set Until 24th


P O L A N D

POLSKIE HUTY: Disagreement over Workers Pay Derails Sale to LNM


S W E D E N

A-TRAIN AB: Sold to Australian Bank for GBP32 Million


S W I T Z E R L A N D

CENTERPULSE AG: New Owner Zimmer Holdings Revamps Board
JULIUS BAER: Ships Institutional Brokerage Business to Lightyear
SWISS INTERNATIONAL: Offers Special Fares on Long-haul Flights


U N I T E D   K I N G D O M

BOOSEY & HAWKES: Posts Documents Related to Classic's Offer
BRITISH ENERGY: Sells Amergen Interest to Exelon for US$277 Mln
CANARY WHARF: Banks Might Present Lower-than-anticipated Bid
EGG PLC: Confirmation of French Biz Exit Expected Within Weeks
INVENSYS PLC: Close to Selling U.S. Subsidiary, Report Says

INVERESK PLC: Former Rescuer Sells Entire Shareholding
MARCONI CORPORATION: To Redeem Junior Secured Notes Due 2008
MARCONI CORPORATION: Outsources Microwave Product Production
NETWORK RAIL: Jarvis Ends Rail Maintenance Contracts
ROYAL & SUNALLIANCE: Confident of Getting Rights Issue Backing

* Large Companies with Insolvent Balance Sheets


                            *********


===========================
C Z E C H   R E P U B L I C
===========================


DAILY INPULS: Halts Circulation Due to Dwindling Cash, Lawsuit
--------------------------------------------------------------
Londa, the owner of radio station Impuls, which sued Daily Inpuls over the
latter's former name, plans to withdraw the lawsuit, according to Londa CEO
Ivan Batka.

This was after the owner of publishing house Impuls CR, Ivan Kaufmann,
confirmed to Czech Happenings on Friday that Daily Inpuls was to stop
circulating the next day.  Mr. Kaufmann said the decision was due to
financial difficulties and the court dispute that has tarnished its
reputation.

Londa sued the publication, formerly known as Impuls, alleging the daily had
violated the established trademark of the radio.  This spoiled the image of
the daily, Mr. Kaufmann said.

"The time and the circumstances were not favorable to us," said Mr.
Kaufmann, according to Czech Happenings.

Subscribers for the daily, launched in May, dwindled to below 40,000
recently.

"From the very beginning, we could not understand some steps made by the
publisher of the daily.  It would have sufficed to give the daily another
name, and there would have been no lawsuits," Mr. Batka said.


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


SUEZ SA: Trims Down Shareholding in UMICORE by a Third
------------------------------------------------------
SUEZ has just sold 2 million shares of UMICORE, representing around a third
of its stake in that company, for EUR96 million.  This transaction, on a
non-strategic equity stake, is fully in line with the SUEZ 2003-2004 action
plan.

SUEZ, a worldwide industrial and services Group, active in sustainable
development, provides companies, municipalities, and individuals innovative
solutions in Energy (electricity and gas) and the Environment (water and
waste services).  In 2002, SUEZ generated revenues of EUR40.218 billion
(excluding energy trading).  SUEZ is listed on the Euronext Paris, Euronext
Brussels, Luxembourg, Zurich and New York Stock Exchanges.

                              *****

Standard & Poor's says Suez's operating performance during first-half 2003
has been satisfactory, with cost-cutting measures and organic growth of 5%
for its core utility businesses stabilizing EBITDA levels on a constant
group basis and on constant exchange rates.  But it warned that despite
these improvements, the company's free cashflow generation after dividends
may remain negative until at least 2005.  This will remain a credit concern.


VIVENDI UNIVERSAL: Ratings Under Review for Possible Upgrade
------------------------------------------------------------
Moody's Investors Service put Vivendi Universal's Ba3 senior implied rating,
and B1 senior unsecured rating under review for possible upgrade after the
French company announced it will merge its Vivendi Universal Entertainment
subsidiary with General Electric's NBC unit.

The rating agency said it will focus its review on an evaluation of the
details of the merger agreement, the company's post transaction leverage and
balance sheet structure including relative seniority of instruments, and the
cashflow generation capacity of Vivendi Universal's remaining units.  The
clarity of the company's medium term strategy, and the way Vivendi Universal
meets crucial conditions precedent, are also factors under review.

Moody's expects the company to make upcoming debt repayments over the next
couple of quarters and to fund the potential acquisition of a 16% stake in
Maroc Telecom despite the slowing down of its disposal program in recent
months.  It also expects Vivendi's core lending banks to remain supportive
of the group -- a main consideration for upgrading Vivendi's ratings.  In
conjunction, Moody's also expects the company to be able to access borrowing
capacity under its key syndicated lending facilities as needed.


VIVENDI UNIVERSAL: Insists on Withholding Messier's Pay Package
---------------------------------------------------------------
In the context of several recent articles and press dispatches, Vivendi
Universal SA (Paris Bourse: EX FP; NYSE: V) and its President want to make
certain clarifications:

(a) Since his appointment as Chairman and CEO of Vivendi Universal, Mr.
Jean-Rene Fourtou, (who did not take part in the negotiation of the
Termination Agreement signed on July 1, 2002) has consistently opposed the
payment to Mr. Jean-Marie Messier of the severance payments provided by that
Termination Agreement;

(b) With the full support of the Board of Directors of Vivendi Universal SA,
he has brought a lawsuit seeking the cancellation of the Termination
Agreement and to have the people who signed it held responsible.

The Board of Directors of Vivendi Universal SA ruled out the submission of
this agreement for shareholder approval because the Board is currently
seeking to nullify it for being signed without the Board's prior approval.

Vivendi Universal SA and Mr. Jean-Rene Fourtou reserve the right to take
legal action against the authors of any false statements in this respect.

CONTACT:  VIVENDI UNIVERSAL SA, Paris
          Antoine Lefort,
          Phone: +33 (0) 1 71 71 11 80

          Agnes Vetillart,
          Phone: +33 (0) 1 71 71 30 82

          Alain Delrieu,
          Phone: +33 (0) 1 71 71 10 86


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


DEUTSCHE BAHN: Privatization to Go Ahead as Finances Improve
------------------------------------------------------------
Deutsche Bahn Competition Officer Alexander Hedderich said preparations for
the privatization of the railway operator is going ahead despite recent
setbacks, according to the Financial Times.

The German government is considering publicly offering 20% of Deutsche Bahn
shares in 2005, but the plan is being spoiled by the railways'
underperformance.  The poor punctuality of the trains was due to new rolling
stock and increased spending on infrastructure, which cause some hold-ups
while maintenance work was being carried out, Mr. Hedderich said.

Deutsche Bahn introduced in December a new pricing system that was supposed
to spread passenger loading more evenly across trains.  But this was
considered too complicated.  It also gave the public a feel that there was
crisis going on in Europe's largest railway operator.

The new fare structure had to be modified in August, a move that Mr.
Hedderich said helped create "a better business reputation."  He also said
Deutsche Bahn's finances had improved in recent years despite the ending of
state subsidies for the burden of taking on the former East German state
railways.

The compensation contributed EUR3.6 billion (US$4.2 billion) in 1994 and
falls to zero this year.  Without the compensation, earnings before
interest, tax, depreciation and amortization were EUR2.02 billion last year,
against losses of EUR2.01 billion in 1994.  Pre-tax net income has climbed
from EUR251 million on EUR14.8 billion revenues in 1994 to EUR438 million on
EUR18.7 billion revenues in 2002.


ENERGIE BADEN-WUERTTEMBERG: Mulls Four-day Work Week to Cut Cost
----------------------------------------------------------------
Energie Baden-Wuerttemberg AG, the German utility company that has suffered
substantial losses due to "legacy burdens," said it is considering
implementing a four-day working week in order to cut personnel costs.

Dow Jones Newswires said the Karlsruhe-based company confirmed in an open
letter to its employees that it aims to reduce employment costs by EUR350
million by 2006, as part of a wider plan to cut costs by EUR1 billion in the
same year.

EnBW said the savings are "economically imperative," but "entirely an
inescapable consequence of the situation left (by predecessors)."

However, EnBW denied reports circulated in the German press last week that
the planned EUR350 million cost-cuts involve making 3,700 jobs redundant.
The company said, in addition to encouraging workers to opt for early
retirement, and dismissing some employees, it is considering implementing a
four-day week with a corresponding wage reduction.

"The concept of the four-day week is by all means applicable in the energy
industry," EnBW said.

EnBW reported net loss of EUR927 million in the first-half.  This was after
it was found out that many of its subsidiaries were overvalued and its
financial situation strained.  A further drain on earnings of nearly EUR200
million is expected for the second-half.

EnBW also revealed in the letter the real situation in its energy business:
first-half pretax profit was negative, it said.

CONTACT:  ENBW ENERGIE BADEN-WURTTEMBERG AG
          Communications Department
          Durlacher Allee 93
          76131 Karlsruhe
          Phone: +49 (07 21) 63-1 43 20
          Fax: +49 (07 21) 63-1 26 72
          E-Mail: unternehmenskommunikation@enbw.com


WESTLB AG: Chairman Ringel to Resign March Next Year
----------------------------------------------------
Dr. Johannes Ringel has assumed the vacant position of Chairman of the
Managing Board in order to begin the necessary restructuring of the Bank for
2005 and to ensure the smooth transition to a new Chairman of the Managing
Board.

The Supervisory Board unanimously approved the WestLB 2005 concept submitted
by Dr. Ringel.  This is currently being implemented.  Dr. Ringel has
therefore laid the foundations for the successful orientation of the Bank
after 2005.

By the end of March 2004, the implementation will have reached the stage
where the successor of Dr. Ringel as Chairman of the Managing Board will be
able to continue the strategy for the years after 2005 in close consultation
with the owners.

Accordingly, Dr. Ringel has decided that his period in office will terminate
on March 31, 2004 and has thus ended all speculation about the duration of
his term in office.  In the next six months, the Supervisory Board can, as
planned, decide on the appointment of Dr. Ringel's successor.


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


FIAT AUTO: Tough Challenges Ahead for New Chief
-----------------------------------------------
The revival of Fiat's auto unit could take more than a year, longer than the
turnaround of Volkswagen's luxury car unit Audi under the directions of
Herbert Demel, now Fiat's new chief executive, according to Bloomberg.

"Mr. Demel has experience in the premium world with Audi, which will help
with the Lancia and Alfa Romeo brands, and he knows the low-cost world in
one of the most troublesome markets from Volkswagen in Brazil, which will
help with Fiat," the report quoted Patrick Juchemich of Bank Sal. Oppenheim
in Frankfurt, saying.

Fiat Auto lost EUR1.9 billion (US$2.2 billion) in two years as its market
share for Fiat, Alfa Romeo and Lancia cars dwindled.  In comparison, when
Mr. Demel took over Audi, the German carmaker had posted a US$46 million
annual loss.   But he successfully revived the business so that when he left
in 1997, Audi had net income of EUR188 million.

Fiat Auto shares have fallen almost 17% this year after plunging 56% last
year.  Fiat, the parent company posted a loss of EUR3.9 billion last year,
and its share of the European car market has dropped by nearly half since
1990, to 7.6%.  Even in Italy, Fiat's market share has declined to 27.2%
from more than twice that in 1990.

"This is the biggest challenge in European auto manufacturing, and that is
what motivates people like Demel," said Arndt Ellinghorst, an analyst at
Westby in Frankfurt.

But the first non-Italian head of Fiat Auto could find the undertaking
complicated as, according to Marco Benedetti of Fumagalli Soldan in Milan,
"Every time Fiat's restructuring is broached, it has to be negotiated with
half the world."

"The government, the unions, local authorities all have a say on the
matter," he said.

But if the Austrian national succeed in the feat, he will be "like Michael
Schumacher," according to Peter Brandle of Swissca Portfolio Management in
Zurich, referring to the Formula One champion of the Fiat-owned Ferrari
team.  According to him, Mr. Demel could, like the German driver, become "a
real Italian hero who came from the outside."


TELECOM ITALIA: Board OKs EUR10 Billion Commercial Paper Program
----------------------------------------------------------------
At Friday's meeting, the Telecom Italia Board of Directors, chaired by Marco
Tronchetti Provera, authorized the establishment of a Euro Medium Term Note
Program for an amount of up to EUR10 billion.

The debt securities will be issued under this new program, subject to market
conditions, either by Telecom Italia S.p.A. or by its subsidiary Telecom
Italia Finance (with a full and unconditional guarantee of Telecom Italia
S.p.A.).

The Board of Directors also approved an offering of debt securities to be
made primarily in the United States to qualified investors, pursuant to Rule
144A of the U.S. Securities Act of 1933, of up to US$4 billion.

The offering, will be made in the United States, subject to market
conditions by Telecom Italia Capital -- or by any other company identically
controlled by Telecom Italia -- with a full and unconditional guarantee of
Telecom Italia S.p.A.

The objective of these initiatives is the refinancing of maturing debt,
optimizing its cost and diversifying the investor base.

The securities referred to in this press release have not been and will not
be registered under the U.S. Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable exemption
from registration requirements.

Milan, October 10, 2003


===================
L U X E M B O U R G
===================


IFCO SYSTEMS: Successfully Closes EUR110 Million Bond Issue
-----------------------------------------------------------
IFCO Systems N.V. announced Friday the successful closing and settlement of
its bond issue.  The EUR110 million bond, with a maturity on October 15,
2010, was priced at 10.375% and successfully placed with institutional
investors.

Deutsche Bank London acted as the sole book-runner for the offering.  IFCO
Systems has applied for listing of the bond on the Luxembourg Stock
Exchange.  Interest for the bond will accrue from the issue date of the note
and will be paid semi-annually on June 30 and December 31, commencing
December 31, 2003.

The proceeds of the issue will be used to refinance IFCO's existing senior
credit facility, to refinance certain other indebtedness, to pay related
fees and expenses and to provide the company with additional cash resources.

Karl Pohler, CEO of IFCO Systems: "We are pleased with the successful
placement of the bond and the confidence of the investors in IFCO Systems.
We now have a balance sheet showing a solid financial structure as well as
sufficient cash resources enabling us to expand our businesses and further
increase profitability".

IFCO Systems is a worldwide logistics service provider with approximately
160 locations in Europe and North America.  IFCO Systems operates a pool of
more than 65 million RPCs (Reusable Plastic Containers) globally, which are
used as a logistic system predominantly for fresh produce by leading grocery
retailers.

In the United States, IFCO Systems also provides a national network of
pallet management services.  With more than 45 million wooden pallets
recycled annually, IFCO Systems is the market leader in this industry. In
2002 IFCO Systems generated revenues of US$380.7 million.


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


EPIQ N.V.: Blames Strikes for Liquidation of French Subsidiary
--------------------------------------------------------------
The commercial court decided Friday to liquidate SM2E, a subsidiary of EPIQ
N.V.  The SM2E Company has been in receivership since January 2003.  After
the first 6 months of positive results and the support of the main
customers, a plan for continuity was presented by EPIQ in June.  To weather
the difficult international economic climate, it decided to reduce staff by
25 employees, leaving staffing at 85, in comfortable conditions.

Contrary to the orders of the court, some representatives of the staff
encouraged the workforce to take industrial action.  The impact of this
strike prevented the company from attending customers' needs and diminished
its chances to survive.  Due to the lack of support for the continuation
plan the court decided to liquidate the company.

ABOUT EPIQ

EPIQ designs, produces and sells electronic and electro-mechanical systems
and sub-systems.  EPIQ provides a wide range of integrated services from
product development up to mass production.  Production comprises the design
of printed circuits and/or spray casting of plastics up to and including the
supply of assembled and tested systems and sub-systems.

In addition the group provides the necessary engineering, research and
development and logistic management.

EPIQ accounts for 15 entities in 8 countries and sales over
EUR167 million (year 2002).

For additional questions we are ready to assist.

CONTACT:  EPIQ N.V.
          Alexander Verhees
          Mobile: +32 -478/34 02 14
          E-mail: avh@epiq.com


HAGEMEYER AG: Buys Time to Carve out Restructuring Plan
-------------------------------------------------------
Hagemeyer N.V. has entered into a standstill agreement with virtually all of
its lenders.  This agreement allows for the continuation of the existing
credit lines and waives certain defaults, which have occurred in various
credit facilities.  The agreement provides access by the company to
liquidity to support normal working capital and trade credit.

The standstill agreement formalizes the process of extending waivers within
which the company has been operating since July.  Since then it has been
developing and reviewing strategies with its worldwide creditor group to
refinance the company and to secure the required liquidity.  Several
alternatives are in advanced stages of consideration.  The standstill
agreement is valid until November 9, 2003, and aims to provide the company
with the necessary time to complete the plans of a permanent restructuring
of its capitalization.  The agreement can be extended to February 9, 2004,
if agreed by the Company and the relevant lenders.

Strategies being considered include restructuring existing debt, new equity
capital, possibly including a third party investor, and other solutions.
Most of the alternatives would involve substantial dilution for the Company'
s current shareholders.  "Our objective is to implement a recapitalization
of the company which provides the necessary operating flexibility and
financial strength for our operating companies to execute their business
plans and which is fair to all our stakeholders," commented Rob ter Haar,
CEO of Hagemeyer.

Key terms and conditions of the standstill agreement are summarized in
Exhibit I.  As soon as specific information about the refinancing is
available, this will be published.

Exhibit I

Key terms and conditions of the Hagemeyer standstill agreement:

a.  The standstill agreement covers all facilities provided by the group of
lenders, including letters of credit, and is based on the situation as per
August 4, 2003.

b.   Duration:

initially to November 9, 2003 and if agreed by the company and its lenders
the standstill can be extended to February 9, 2004.

c.   Interest cost and waiver fee:

     (i) Total interest cost will increase from 5.5% per annum
         as per January 2003, to approximately 7.0% of net debt.

    (ii) The waiver fee equals 25 basis points of the amount of
         the standstill for the period up to November 9, 2003.

d.  Key conditions to be met on or before November 9, 2003:

     (i) Reporting on progress on specific business and working
         capital improvements.

    (ii) Reporting on progress towards completion of the overall
         refinancing plan.

e.   Financial covenant:

     (i) During the standstill period Hagemeyer must meet a
         minimum current ratio[1] of 1.0 (note: the current
         ratio as per June 30, 2003 was 1.05).


===========
N O R W A Y
===========


PAN FISH: Nordea Ups Shareholding to 51.38%
-------------------------------------------
During the General Meeting of Pan Fish ASA Friday, Nordea Bank Norge ASA has
subscribed for 7,552,009,225 new shares in Pan and a subordinated
convertible loan which entitles the bank to acquire another 1,904,588,820
new shares in the company during a period of five years after the General
Meeting.  Following the registration of the increase of the share capital
Nordea and other companies within the same Group will hold a total of
8,699,400,380 shares in Pan in addition to the shares which Nordea is
entitled to acquire via the subordinated convertible loan.  After the
increase Nordea's holding thus represents 46.43% of the shares and votes in
Pan.  If the convertible loan should be converted into shares Nordea will
after such a conversion hold 51.38% of the shares and votes in Pan.

In connection with the published sale of shares to other shareholders of Pan
Nordea will sell up to 3,667,190,452 shares.  At the same time the bank has
committed itself to use the subordinated convertible loan to reacquire the
shares that Nordea sells in this connection.

The stock exchange in Oslo has confirmed that in pursuance of the exception
in section 4-3 of the Norwegian Securities Trading Act, Nordea will not
incur a mandatory offer obligation as a result of the shares acquired in
connection with the financial restructuring.  However, the stock exchange in
Oslo has made it a condition that Nordea within three years after the
previous restructuring of Pan in January 2003 either (i) has reduced its
ownership share to less than 40% of the shares by sale or (ii) makes a
mandatory offer.  If the three-year time limit turns out to be insufficient
to thus reduce its ownership share by sale,
Nordea may apply to the stock exchange in Oslo for an extension of the time
limit.

Nordea and Den norske Bank ASA have agreed that the two banks` current
acquisition of shares in Pan (that is a total of 12,769,400,685 prior to the
sale of the shares) and the shares that Nordea might acquire at a later
conversion of the subordinated convertible loan also shall be a part of the
parties` shareholder agreement mentioned in the information to the stock
exchange dated January 13, 2003.  There are no other material changes to the
above agreement.

                              *****

In September, Pan Fish agreed over a total financing solution aimed at
strengthening the company's solidity and cash position.  The refinancing
agreement includes the depreciation of the share capital, based on an
intermediate financial balance as at June 30, 2003, through depreciation of
the share face value to NOK0.04; and the partial convertion of debts to the
bank syndicate of NOK900 million to share capital at a price of NOK0.05 and
partially (NOK100-150 million) to a convertible, liable loan.  The
convertible loan will have a conversion price of NOK0.05.


PETROLEUM GEO-SERVICES: Choosing of Distributions Set Until 24th
----------------------------------------------------------------
Petroleum Geo-Services ASA (debtor in possession) (OSE:PGS) (Pink
Sheets:PGOGY) announced Friday that Class 4 creditors will have until
October 24, 2003 (or October 21, 2003, in the case of holders of Allowed
Bondholders Claims who must duly inform their Nominee of their elections and
allow their Nominee sufficient time to tally their elections and mail them
so they are received by the Debtor's agent) to ensure that their intended
choice of distributions under the Company's restructuring plan are
recognized by the Debtor pursuant to its restructuring plan.

Pursuant to the Debtor's First Amended Plan of Reorganization, dated
September 10, 2003 and the Order: (i) Approving Debtor's Disclosure
Statement; and (ii) Establishing Solicitation and Confirmation Process
Procedures, the Distribution Record Date in respect of Allowed Bondholder
Claims and Allowed Bank Claims is October 14, 2003 at 5:00 p.m., New York
Time.  (All terms used herein and not defined herein will have the meaning
given to them in the Plan.)  Holders of such Claims as of the Distribution
Record Date are entitled to receive a distribution in accordance with the
Plan.

THE DEBTOR IS NOT ALLOWING ADDITIONAL TIME TO VOTE TO ACCEPT OR REJECT THE
PLAN.  THE DEBTOR IS ONLY ALLOWING ADDITIONAL TIME FOR CLASS 4 CREDITORS TO
MAKE THE ELECTIONS DESCRIBED BELOW. THE VOTING DEADLINE REMAINS OCTOBER 14,
2003 AND ALL BALLOTS AND MASTER BALLOTS MUST BE RETURNED TO THE DEBTOR'S
BALLOTING AGENT BY SUCH DATE.

For the avoidance of any doubt, and in order to ensure that each holder of
an Allowed Bank Claim and/or Allowed Bondholder Claim receives its intended
distribution pursuant to the Plan, the Debtor intends to propose a technical
modification to the Plan to allow additional time for holders of such Claims
to ensure that their intended Plan allocations in respect of the Package A
Distribution, the Package B Distribution and designation of New PGS Ordinary
Shares as Offered Shares, are recognized by the Debtor pursuant to the Plan.
The Distribution Record Date (October 14, 2003) is not being changed.

In this regard, each beneficial owner of an Allowed Bondholder Claim as at
the Distribution Record Date (October 14, 2003) must duly inform its
respective broker, bank, dealer or other agent or nominee of its elections
under the Plan respecting (i) its election of (a) the Package A Distribution
and/or (b) the Package B Distribution, and (ii) if such Holder elects in
whole or in part for the Package B Distribution, what percentage, if any, of
its New PGS Ordinary Shares that it designates as Offered Shares. This form
will be sent to each Nominee by the Debtor and will be posted on the
Company's website at www.pgs.com/restructuring).  Each Nominee must return t
o Bankruptcy Services LLC, the Debtor's balloting agent, the properly
completed election form so it is received by BSI no later than 5:00 p.m. New
York time on October 24, 2003. To be properly completed the form must
contain no less than the following information:

1. A certification from the Nominee that the Holder was a registered or
beneficial holder of a Allowed Class 4 Bondholder Claim with the Nominee as
at the Distribution Record Date (October 14, 2003); and

2. The principal amount of such Holder's Allowed Class 4 Bondholder Claim as
at the Distribution Record Date (October 14, 2003) broken down, if
applicable, between the Existing Notes held by such Holder; and

3. The Holder's allocation of its Class 4 election between the Package A
Distribution and the Package B Distribution; and

4. If the Holder selected the Package B Distribution with respect to any
portion of its Claim, specify what percentage, if any, of such Holder's New
PGS Ordinary Shares received in respect of the Package B Distribution that
should become Offered Shares.

The Debtor will provide holders of Allowed Class 4 Bank Claims with a
similar opportunity, and will transmit to the Agent Banks under each Bank
Facility individual election forms (which will be posted on the Company's
website at http://www.pgs.com/restructuring)for the Agent Banks to
distribute to the holders of Allowed Bank Claims as of the Distribution
Record Date.  Holders of Allowed Class 4 Bank Claims as at the Distribution
Record Date (October 14, 2003) that desire to make an election or change
their previously submitted election must complete and return the election
forms so that they are received by BSI no later than the Allocation
Deadline.

PURSUANT TO SECTION 4.4 OF THE PLAN, (I) IF ANY NOMINEE FAILS TO PROVIDE THE
AFOREMENTIONED INFORMATION TO BSI BY THE ALLOCATION DEADLINE, EACH HOLDER OF
AN ALLOWED BONDHOLDER CLAIM FOR WHOM THE ELECTIONS ARE NOT MADE AND PROPERLY
REFLECTED IN THE ELECTION FORM WILL BE DEEMED TO HAVE ELECTED TO RECEIVE THE
PACKAGE B DISTRIBUTION, AND WILL BE DEEMED TO HAVE ELECTED TO HAVE 100% OF
THEIR NEW PGS ORDINARY SHARES BECOME OFFERED SHARES; AND (II) IF ANY HOLDER
OF AN ALLOWED BANK CLAIM AS OF THE DISTRIBUTION RECORD DATE FAILED TO HAVE
PREVIOUSLY SUBMITTED A TIMELY INDIVIDUAL BALLOT AND DOES NOT RETURN A
PROPERLY COMPLETED ELECTION FORM TO BSI BY THE ALLOCATION DEADLINE, SUCH
HOLDER WILL BE DEEMED TO HAVE ELECTED TO RECEIVE THE PACKAGE B DISTRIBUTION,
AND WILL BE DEEMED TO HAVE ELECTED TO HAVE 100% OF THEIR NEW PGS ORDINARY
SHARES BECOME OFFERED SHARES.  IT IS THEREFORE IMPERATIVE THAT EACH NOMINEE
AND EACH HOLDER OF AN ALLOWED BANK CLAIM PROVIDE THE AFOREMENTIONED
INFORMATION TO BSI BY THE ALLOCATION DEADLINE.

THE DEBTOR INTENDS TO SEEK BANKRUPTCY COURT APPROVAL OF THESE PROCEDURES,
WHICH WILL REQUIRE A TECHNICAL MODIFICATION OF THE PLAN, AT THE HEARING TO
CONSIDER CONFIRMATION OF THE PLAN THAT WILL BE HELD ON OCTOBER 21, 2003, AT
THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK.

PLEASE NOTE THAT FOR THE PURPOSE OF ANY DISTRIBUTIONS TO HOLDERS OF ALLOWED
CLASS 4 CLAIMS MADE ON THE EFFECTIVE DATE OR THEREAFTER IN ACCORDANCE WITH
THE PLAN, THE DEBTOR WILL NOT RECOGNIZE ANY TRANSFERS OF ANY OWNERSHIP OF
ALLOWED CLASS 4 CLAIMS AFTER THE DISTRIBUTION RECORD DATE (OCTOBER 14,
2003).  ACCORDINGLY, ANY TRANSFERS MADE AFTER OCTOBER 14, 2003, SHOULD
CONTAIN APPROPRIATE INSTRUCTIONS AS BETWEEN THE TRANSFEROR AND TRANSFEREE,
INCLUDING, FOR EXAMPLE, A NOTIFICATION AS TO THE ALLOCATION BETWEEN THE
PACKAGE A DISTRIBUTION AND THE PACKAGE B DISTRIBUTION (AND THE DESIGNATION
OF NEW PGS ORDINARY SHARES AS OFFERED SHARES, IF APPLICABLE) REPORTED BY THE
NOMINEE TO BSI WITH RESPECT TO THE ALLOWED CLASS 4 CLAIM BEING TRANSFERRED.

Petroleum Geo-Services is a technologically focused oilfield service company
principally involved in geophysical and floating production services.  PGS
provides a broad range of seismic- and reservoir services, including
acquisition, processing, interpretation, and field evaluation.  PGS owns and
operates four floating production, storage and offloading units (FPSO's).
PGS operates on a worldwide basis with headquarters in Oslo, Norway.  For
more information on Petroleum Geo-Services visit http://www.pgs.com

This announcement does not constitute an offer of any securities for sale.
Any securities issuable under the Plan have not been registered under the
Securities Act of 1933 and may not be offered or sold in the United States
absent registration under such act or an applicable exemption from
registration requirements.

CONTACT:  PETROLEUM GEO-SERVICES
          Sam R. Morrow
          Svein T. Knudsen
          Phone: +47-67-52-6400

          Suzanne M. McLeod
          Phone: +1 281-589-7935


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


POLSKIE HUTY: Disagreement over Workers Pay Derails Sale to LNM
---------------------------------------------------------------
The privatization of Polskie Huty encountered a glitch after its buyer, LNM
Holdings, failed to reach an agreement over the employment, wage and
benefits package of Polskie employees by Thursday's deadline, Dow Jones
said.

The world's second largest steel producer LNM Group agreed with the Polish
government to buy Polskie Huty Stali, Poland's largest steelworks, in
September.  The terms of the deal were not disclosed, but it is estimated to
be worth over US$1 billion, according to Bluebull.  Earlier, it was reported
that Poland wants investors to buyout at least PLN1.6 billion of Polskie's
debt, inject around US$150 million in fresh capital, accept the terms of
Poland's steel support scheme agreed with the E.U., and take the state's
shareholdings on an agreed timetable.  The transaction is still subject to
regulatory approvals, and the agreement with workers.

With the recent development, the Treasury Minister Piotr Czyzewski must now
decide whether to go ahead with the sale without the benefits package or
give parties more time to reach agreement, according to the report.


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


A-TRAIN AB: Sold to Australian Bank for GBP32 Million
-----------------------------------------------------
The A-Train consortium -- NCC, Vattenfall, Alstom and Mowlem -- has reached
conditional agreement with Macquarie Bank of Australia to sell A-Train AB,
the company operating the Arlanda Express passenger rail link in Sweden.
The company had revenues of approximately GBP27 million in 2002, resulting
in a loss of some GBP4 million after tax.

The total agreed sale price is approximately GBP32 million, comprising a
cash portion of GBP5.5 million, the assumption of commitments towards
financiers of GBP16 million and collateral of GBP10 million for
train-leasing agreements.  Mowlem will receive GBP1.7 million in cash and be
released from commitments to A-Train's financing in exchange for its 7%
shareholding.

The sale is subject to certain conditions including approval from the
Swedish government and A-Train's financiers.

Commenting on the sale, Mowlem Development Director, Arthur Moore, said:
"The consortium has been investigating ways to realize its investment in
A-Train for some time.  For Mowlem, this transaction will result in an
exceptional loss of some GBP2.9 million against book value, which is within
the range of our expectations."

CONTACT: Brian O'Neill
         Phone: 020 8568 9111


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


CENTERPULSE AG: New Owner Zimmer Holdings Revamps Board
-------------------------------------------------------
At an extraordinary general meeting of Centerpulse AG, the Board of
Directors was fully reconstituted subsequent to the purchase of Centerpulse
by Zimmer Holdings, Inc., which holds 98.7% of Centerpulse's outstanding
share capital. The former members Max Link, Johannes Randegger, Rolf Water,
Ren, Braginsky, Steffen Gay and Larry L. Mathis have been replaced.

The new Board consists of J. Raymond Elliott, Chairman and CEO of Zimmer
Holdings, Inc., and attorneys Robert Furter, Jakob Hohn and Christian Roos.

About Centerpulse

Centerpulse's subsidiaries develop, produce, and distribute
medical implants and biological materials for orthopedic, spinal
and dental markets worldwide. The product array includes
artificial joints, dental implants, spinal implants and
instrumentation.

                              *****

On October 6, 2003, Standard & Poor's Ratings Services withdrew its 'BB'
long-term corporate credit ratings on Centerpulse Ltd. and its 'BB' bank
loan rating on related entity, Centerpulse Orthopedics Inc.

This follows the completion of the $3.2 billion acquisition of
Centerpulse by U.S.-based Zimmer Holdings Inc. (BBB/Stable/--), a leading
orthopedic implant manufacturer. Subsequently, all
outstanding debt at Centerpulse was repaid.


JULIUS BAER: Ships Institutional Brokerage Business to Lightyear
----------------------------------------------------------------
The Julius Baer Group completed Thursday the sale of its institutional
brokerage business to The Lightyear Fund, LP, managed by Lightyear Capital,
LLC, a U.S.-based private equity investment firm.

Under the terms of the agreement, the sold business line will be permitted
to continue using the name Julius Baer Brokerage until February 2004 at the
latest.  Julius Baer will retain a 15% minority interest in Julius Baer
Brokerage SA to support a smooth transfer of the existing client base.

On the occasion of a media conference on October 30 in Geneva, Julius Baer
will comment on the development of assets under management and provide an
assessment of its current business trend.

                              *****

Julius Baer has been struggling with the difficult markets and resulting
drop in assets under management as well as to falling transaction volumes.
In 2002, the Group's consolidated net profit fell 19% to CHF183 million,
forcing it to chop a substantial percentage of its workforce.  In the
first-half of this year, the Group took various measures to sustainably
improve profitability.

CONTACT:  Investor Relations:
          Rainer Skierka
          Phone: +41 (0) 58 888 5230


SWISS INTERNATIONAL: Offers Special Fares on Long-haul Flights
--------------------------------------------------------------
SWISS is offering special low fares on 13 of its long-haul routes from
Switzerland to North America, Africa and Asia from October 12 to 31. The new
low fares range from CHF399 to CHF699.   The special fares will be available
to selected destinations and for a limited period only.  Flights can be
booked via any sales channel from October 12 to 31 for travel between
October 20 and December 13.

The offer is intended to supplement SWISS' usual November promotion.  The
limited additional number of seats will enable even more people to
experience the SWISS long-haul product during the Christmas shopping period.
And, in bringing the world closer with these special low fares, the new
promotion is also an excellent way to mark SWISS' new membership of the
OneWorld alliance.

The special fares are available to the following 13 destinations:

In North America:
New York, Boston, Chicago, Miami, Los Angeles and Montreal

In Africa:
Cairo, Dar es Salaam and Nairobi

In Asia:
Dubai, Muscat, Hong Kong and Manila.

                              *****

Swiss was formed in April 2002 from the remains of failed Swissair and the
regional carrier Crossair with a CHF2.7 billion private-public cash drive.
It is going through its biggest restructuring ever and has slashed its fleet
and workforce by about a third and cutting route network by over a quarter.

CONTACT:  SWISS Corporate Communications
          P.O. Box, CH-4002 Basel
          Phone: +41 848 773 773
          Fax: +41 61 582 3554
          E-mail: communications@swiss.com
          Homepage: http://www.swiss.com


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


BOOSEY & HAWKES: Posts Documents Related to Classic's Offer
-----------------------------------------------------------
Classic Copyright Limited is pleased to announce that the offer document in
relation to the cash offers made by Deloitte & Touche Corporate Finance on
behalf of Classic Copyright Limited for the entire issued and to be issued
share capital of Boosey & Hawkes plc, announced on October 3, 2003, was
posted to shareholders on Friday.

                              *****

Boosey & Hawkes placed itself for sale in October 2001 after its United
States operations ran into financial trouble and its instrument-making plant
in north London was found to be turning out defective products.   The sale
of the company's instrument workshops, which supply orchestras worldwide,
was completed in February.

CONTACTS:  HG CAPITAL
           Nick Martin/Ian Armitage
           Phone: 020 7089 7888

           DELOITTE & TOUCHE Corporate Finance
           Jonathan Hinton/Byron Griffin
           Phone: 020 7936 3000

           HOLBORN PUBLIC RELATIONS LIMITED
           David Bick/Trevor Phillips
           Phone: 020 7929 5599


BRITISH ENERGY: Sells Amergen Interest to Exelon for US$277 Mln
---------------------------------------------------------------
The Board of British Energy announces that, following the decision by Exelon
Generation Company, LLC to exercise its right of first refusal announced on
October 3, 2003, British Energy and Exelon have on Friday entered into an
agreement to dispose of British Energy's entire 50% interest in AmerGen
Energy Company, LLC for approximately US$277 million.  The terms of the
acquisition will be the same as those agreed with FPL Energy, LLC and
announced by British Energy on September 11, 2003.  Exelon, a wholly owned
subsidiary of Exelon Corporation (NYSE: EXC), owns the remaining 50%
interest in AmerGen.  As a result of entering into this agreement, British
Energy will terminate its agreement with FPL Energy and, upon completion of
the disposal, pay break fees of up to US$8.295 million to FPL Energy.

Closing of the proposed transaction with Exelon is subject to approvals from
The Secretary of State for Trade and Industry, the Nuclear Regulatory
Commission, the Federal Energy Regulatory Commission and the Federal
Communications Commission and requires clearance under the Hart-Scott-Rodino
Antitrust Improvements Act and the New Jersey Industrial Site Recovery Act.
In addition, the parties will not be obliged to complete the transaction if
a material adverse effect (as defined in the agreement) or certain other
specified adverse effects occur prior to closing.  Completion of the
transaction is also subject to approval of the disposal of British Energy's
interest in AmerGen by the shareholders of British Energy, where required.

The Board expects that it will require approximately six months to obtain
the necessary regulatory approvals for a disposal of its interest in AmerGen
to Exelon.

If the sale to Exelon is completed, British Energy expects to receive cash
consideration of approximately US$277 million, subject to adjustments
relating to working capital levels, unspent nuclear fuel, capital
expenditures and low-level waste disposal costs at the time of closing, and
prior to paying break fees to FPL Energy.  The proceeds of the transaction
are expected in the first instance to be used to repay the sums made
available to British Energy under the DTI credit facility entered into on
September 26, 2002 and subsequently extended (if any) and the remainder will
be retained to build cash reserves for working capital and collateral
purposes.

AmerGen is engaged in the ownership and operation of nuclear power
generation plants in the United States of America.  As at March 31, 2003,
British Energy had recorded its 50% interest in AmerGen in its accounts,
where it is classified as an 'Interest in joint venture', at a net asset
value of GBP71 million.  AmerGen's loss before tax (post-exceptionals) in
the year ended March 31, 2003 was GBP5 million.  Taking account of parent
company funding and working capital in AmerGen's U.S. holding company that
is being disposed of as part of the transaction, the total net asset value
of assets as at March 31, 2003 subject to the transaction was GBP67 million
with an attributable loss before tax (post-exceptionals) for the year ended
March 31, 2003 of GBP7 million.

The sale of British Energy's interest in AmerGen is a key element of the
proposed restructuring of British Energy and its subsidiaries.  The terms
and conditions of the proposed restructuring were contained in an
announcement made by British Energy on October 1, 2003.

The Board believes that such a restructuring of the Group offers the best
available opportunity to achieve the long-term financial viability of the
Group.  However, the proposed restructuring is subject to a significant
number of conditions, which are explained in the announcement made by
British Energy on October 1, 2004.

If the transaction is not completed or if the broader restructuring
proposals with creditors and the DTI cannot be implemented because the
required approvals for the restructuring are not forthcoming or if the
assumptions underlying the restructuring proposals are not fulfilled or the
conditions to the Facility or restructuring are not satisfied or waived
within the timescales envisaged, British Energy may be unable to meet its
financial obligations as they fall due and consequently may have to take
appropriate insolvency proceedings.  If insolvency proceedings are
commenced, the distributions to unsecured creditors may represent only a
small fraction of their unsecured liabilities and there is highly unlikely
to be any return to shareholders.  Even if the restructuring is completed,
based on the terms of the proposed restructuring agreed with creditors and
the DTI and announced on October 1, 2003, the return for existing
shareholders will represent only a very small percentage of the equity of
the restructured group and their existing positions will be very
significantly diluted.

AmerGen is an 'Exempt Wholesale Generator' under the Public Utility Holding
Company Act of 1935, a 'public utility' under the Federal Power Act and has
a market-based rate wholesale power sales tariff on file with the FERC.

AmerGen was established on August 18, 1997 by PECO Energy Company and
British Energy to acquire and operate nuclear-powered generating plants and
other associated assets in the United States.  PECO's interests in AmerGen
were transferred to Exelon in connection with its merger with Unicom
Corporation in 2000.

AmerGen owns three nuclear power generation plants in the United States:

(a) Clinton Power Station, a 1,017 Net Average Megawatts Electrical Boiling
Water Reactor, purchased from Illinois Power Company on December 15, 1999

(b) Three Mile Island Nuclear Station Unit 1, an 837 MWe Pressurized Water
Reactor, purchased from FirstEnergy Corp. ('FirstEnergy', which includes
FirstEnergy Corp., its predecessors and subsidiaries, including GPU, Inc.)
on December 20, 1999

(c) Oyster Creek Nuclear Generating Station, a 627 MWe Boiling Water
Reactor, purchased from FirstEnergy on August 8, 2000

Exelon Corporation is the utility holding company for Commonwealth Edison
Company and PECO Energy Company, which are electric utilities.  Exelon,
through its subsidiaries, operates in three business segments: energy
delivery, which consists of the retail electricity distribution and
transmission businesses of ComEd in northern Illinois and PECO in
southeastern Pennsylvania and the natural gas distribution business of PECO
in the Pennsylvania counties surrounding the city of Philadelphia;
generation, which consists of electric generating facilities, energy
marketing operations and equity interests in Sithe Energies, Inc. and
AmerGen; and enterprises, which consists of competitive retail energy sales,
energy and infrastructure services, communications and other investments
weighted towards the communications, energy services and retail services
industries.

CONTACT:  BRITISH ENERGY
          Paul Heward, Investor Relations
          Phone: +44 1355 262 201


CANARY WHARF: Banks Might Present Lower-than-anticipated Bid
------------------------------------------------------------
Morgan Stanley and Goldman Sachs, banks bidding to buy Canary Wharf, are
likely to offer less than GBP1.5 billion for the east London office complex
within 10 days, according to The Observer.  The amount, which values the
property company at between 250p and 260p, is about GBP100 million lower
than has been expected.

But Morgan Stanley and Goldman Sachs are still to come up with an offer that
would appease Michael Glick, the 9% shareholder in Canary, without breaking
Takeover Panel rules, the report said.  It still also has to design ways to
finance the deal.

Sources at the investment bank hint the parties should agree on a deal
within 14 days; if negotiations drag on, the whole deal could fall through,
they said.  In such case, the bidding will be left to Brascan, the Canadian
conglomerate, and Paul Reichman, the founder of the company who made known
his intention to bid last week.

Mr. Reichman, who holds 7.75% of the firm, is yet to put together the
details of how it is going to finance the details.  Insiders are not very
confident he will be able to arrange the levels of debt quickly, according
to the report.  Brascan, which owns 9% in Canary Wharf, is still very much
in the running.


EGG PLC: Confirmation of French Biz Exit Expected Within Weeks
--------------------------------------------------------------
Internet banking and credit cards group, Egg plc, could announce plans to
sell its struggling French operations when it unveils trading results on
October 22, according to analysts.

The Scotsman quoted one stockbroker saying: "It now appears that it is
simply a question of timing before directors announce that un oeuf (sic) is
enough at La Carte Egg.  The formula just hasn't worked in France, where
consumers haven't got the same interest in juggling their credit cards."

The finance group had a huge success for its online bank in the U.K., which
it said has attracted 3 million cardholders largely because of its heavy
promotion.  But its French business has, by the end of July, only added
25,000 to the 90,000 customers it inherited when it bought the business from
Zebank last year, and there were only 42,000 La Carte Egg credit cards in
regular use.

Unlike in the U.K. where it can offer zero interest on transferred balances,
it cannot under French law give introductory offers of zero interest rates.
The French operation reported losses of more than GBP48 million in the
opening of the half-year.

Prudential, owner of 79% of Egg's shares, is understood unwilling to
sanction the further heavy investment needed to revive the business,
according to the report.

There are also rumors that Prudential is planning to withdraw from France as
part of plans to unload its controlling stake in the Internet bank.  Egg
could be more attractive to potential investors without the French
operation, a report from consultants Datamonitor said.  David Doyle, former
head of corporate finance at Prudential, replaced finance director Stacey
Cartwright less than a month ago.


INVENSYS PLC: Close to Selling U.S. Subsidiary, Report Says
-----------------------------------------------------------
Invensys is expected to confirm during its trading update this week that it
is at an advanced stage of talks with a prospective buyer for its U.S.
subsidiary.

The company is understood close to sealing the deal involving Invensys
Metering Systems for GBP550 million, Dow Jones said, citing The Financial
Mail.  According to the report, rival Danaher Corporation is interested in
the subsidiary.  But sources close to Invensys the management and a venture
capitalist could join force to grab a deal.

Invensys is a global leader in production technology.  The group helps
customers improve productivity, performance and profitability using
innovative services and technologies and a deep understanding of their
industries and applications.  It operates in more than 60 countries, with
its headquarters in London.

The troubled automation and controls group has put two thirds of its
business up for sale to plug a GBP900 million- pension deficit and take care
of GBP1.6 billion in debts due to be refinanced in 2005.

CONTACT:  INVENSYS PLC
          Duncan Bonfield
          Phone: +44 (0)20 7821 3529
          Fax: +44 (0)20 7821 3709


INVERESK PLC: Former Rescuer Sells Entire Shareholding
------------------------------------------------------
Inveresk Plc, the papermaker that suffered financial problems in recent
years, has been informed that its larger Swedish rival Klippan AB had
disposed of its entire 26% shareholding in the firm, The Scotsman reports.

Chief Executive Alan Walker said the shares went to several London-based
institutional investors.  He failed to identity the buyers, though.

Klippan saved Inveresk from receivership by agreeing to a GBP4 million-
rescue deal after the paper manufacturer breached banking covenants with
Royal Bank of Scotland in August 2002.
At the time, Inveresk's board said the working capital currently available
to Inveresk is not sufficient for the company's present requirements -- that
is, for at least 12 months following the date of the announcement.

It reported a loss of GBP16,000 for the first half last year.  This year,
however, it turned in a pre-tax profit of just over GBP2 million for the
same period.


MARCONI CORPORATION: To Redeem Junior Secured Notes Due 2008
------------------------------------------------------------
Marconi Corporation plc (London: MONI and Nasdaq:
MRCIY) confirms to the owners of its 10% guaranteed Junior Secured Notes,
due 2008 (the Securities) the parameters of the redemption of $28,916,278
aggregate principal amount of Securities (the Redemption Securities) that
was announced on October 3, 2003.

The Record Date shall be the close of business in London on October 16,
2003.  The Redemption Date, as previously announced, shall be on October 17,
2003.

In line with the mechanism used for the previous partial redemption of the
Junior Secured Notes which took effect on September 30, 2003, an additional
pool factor of 5.9390796% will be applied to every holding, calculated with
reference to the original issue amount of $486,881,472.  As at October 17,
2003 the total pool factor, including the previous redemptions effective on
July 31, 2003 and September 30, 2003, will be 40.7100989%, calculated with
reference to the original issue amount of $486,881,472.

On the Redemption Date, the Redemption Price, together with accrued
interest, will become due and payable.  The Redemption Securities shall
cease to bear interest from and after the Redemption Date.

Any queries in respect of payment, pool factor or related matters should be
directed to Emma Wilkes at Bank of New York on (+44) 20 7964 7662, who are
the Registrar, the Depositary and the Paying Agent.

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications equipment, services
and solutions company.  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 customer base
includes many of the world's largest telecommunications operators.

The company is listed on the London Stock Exchange (MONI) and on Nasdaq
(MRCIY).

Additional information about Marconi Corporation can be found at
http://www.marconi.com


MARCONI CORPORATION: Outsources Microwave Product Production
------------------------------------------------------------
Marconi Corporation plc (London: MONI and NASDAQ:MRCIY) has agreed to
outsource, through its German subsidiary, the manufacture of its Fixed
Wireless Access products and associated operations in Offenburg, Germany, to
Elcoteq Network Corporation.  Elcoteq, Europe's largest electronics
manufacturing services company, will continue the manufacture of digital mic
rowave equipment for Marconi.  The agreement is part of Marconi's strategy
to continue to reduce the cost and enhance flexibility of manufacturing its
portfolio of products for the worldwide telecommunications market.

In return, Elcoteq will pay Marconi EUR10 million (approximately GBP7
million) in cash.  75% of the cash consideration will be paid when the
agreement closes, which is anticipated to be during November 2003.  The
remaining cash will be retained in ESCROW pending final completion.  It is
anticipated that 340 current Marconi employees at the site will transfer
employment to Elcoteq.  The transfer is due to take effect during November,
2003.

Commenting, Mike Donovan, Marconi's chief operating officer, said: "This
outsourcing agreement reflects Marconi's strategy to help reduce the cost
and enhance the flexibility of our product manufacturing operations, whilst
enabling third party manufacturing specialists to provide the ongoing,
efficient supply of our volume products.

"Elcoteq is an electronics manufacturing services company that concentrates
specifically on communications technology products, and therefore an ideal
partner for us.  This agreement makes good sense for all parties.  Marconi
will retain our its mechanical engineering and logistics operations, and
over 100 personnel, at the Offenburg site."

Lasse Kurkilahti, president and CEO of Elcoteq, said: "This is an important
step in the implementation of Elcoteq's communications technology strategy.
The products manufactured in Offenburg represent the company's strategic
core business and are technically demanding to make.  This acquisition
further strengthens our radio frequency, system integration and testing
expertise.  We are also very happy to welcome Marconi as one of our
customers because their products are employed in almost all the major
telecom operators' networks."

A sum representing the net cash proceeds from the transaction will be paid
into the Marconi Corporation Redemption Escrow Account and will be used to
fund a further partial redemption of the Group's Junior Notes in due course.

About Marconi Corporation plc Redemption Escrow Account (MREA)

When the balance of the MREA reaches US$30 million, this triggers a
mandatory partial redemption of Marconi's Junior Notes at 110% of par value.

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications equipment, services
and solutions company.  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 customer base
includes many of the world's largest telecommunications operators.

The company is listed on the London Stock Exchange under the symbol MONI and
on NASDAQ under the ticker MRCIY.  Additional information about Marconi
Corporation can be found at
http://www.marconi.com

About Elcoteq

Elcoteq Network Corporation is the largest European electronics
manufacturing services company and one of the global leaders in its field.
The company focuses on communications technology products and customers.
Elcoteq provides globally end-to-end solutions consisting of design, NPI,
manufacturing, supply chain management and after-sales services for the
whole lifecycle of its customers' products.  The company operates on three
continents in 12 countries and it has about 11,000 employees. Elcoteq's
consolidated net sales in 2002 totaled EUR1,840 million.  Elcoteq Network
Corporation is listed on the Helsinki
Exchanges.  More information on the company at http://www.elcoteq.com


NETWORK RAIL: Jarvis Ends Rail Maintenance Contracts
----------------------------------------------------
Network Rail and Jarvis announced Friday that they have reached an agreement
on the future of Jarvis' rail infrastructure maintenance contracts.

The Board of Jarvis announced earlier that it has made a commercial decision
to exit rail maintenance contracts.  Jarvis currently operates three rail
maintenance contracts on behalf of Network Rail -- Central, East Coast Main
Line and Liverpool, North Wales and Merseyrail.  Network Rail has therefore
decided to bring these three contracts in-house.

The handover is targeted to be completed by April 2004, but the exact timing
will be determined following detailed discussions and consultation,
including safety case validation, which will take place over the next few
months.  It is anticipated that Jarvis employees who are currently engaged
in rail maintenance activity will be transferred to Network Rail.  All terms
and conditions of employment will fall within TUPE legislation.

Jarvis Chairman, Paris Moayedi said: "The Board of Jarvis has decided to
focus the business on delivering its core services to even higher standards
of excellence."

Rail maintenance accounts for less than 15% of Jarvis' turnover and Jarvis
now intends to concentrate on its other core activities, including track
renewals.

"Network Rail has decided to take these contracts back in-house.  We will
work closely with Network Rail to ensure the handover is as smooth as
possible."

Network Rail Chief Executive, John Armitt said: "We are pleased to have
reached this agreement with Jarvis.  Jarvis has decided to exit rail
maintenance and we have concluded that the best way forward is to bring
these contracts in-house.  We will work closely with Jarvis in the coming
months to ensure a smooth transition."

Network Rail

Network Rail organizes the country's rail network into 20 maintenance
contract areas.  Seven maintenance contractors hold these contracts: Amey,
Carillion Rail, First Engineering, Balfour Beatty, Amec, Jarvis and Serco;
plus Network Rail's own in-house maintenance operation.

Jarvis has held the Central contract since April 1, 2000 and it was due to
expire on March 31, 2005.  This contract area covers north Lincolnshire,
Yorkshire and the North West including cities such as Lincoln, Hull, Leeds,
Bradford, Middlesbrough.  Train operators in Central include Arriva Trains,
Hull Trains, Virgin Cross Country and Midland Mainline.

The East Coast Mainline contract commenced on April 1, 2001 and was due to
expire on March 31, 2006.  This contract area covers the linear route of the
East Coast Main Line from London to the Scottish board including cities such
as Peterborough, Doncaster, Leeds, York, Newcastle.  Train operators include
GNER, WAGN, Hull Trains, Arriva Trains and Virgin Cross Country.

The Liverpool, North Wales and Merseyrail started on April 1, 2001 and was
due to expire on March 31, 2006.  This contract area is self-explanatory and
includes cities such as Liverpool, Chester and Bangor.  Train operators
include First North Western and Merseyrail Electrics.

Network Rail is the 'not for dividend' operator of Britain's rail network.
Our objective is to provide safe, reliable and efficient rail
infrastructure.

We own and maintain the tracks, signals, tunnels, bridges, viaducts, and
level crossings.  We also own the network's 2,500 stations, and manage the
largest and busiest.  We provide access to the tracks for every passenger
and freight train, timetable their journeys, and operate the signaling,
which controls their movements.

Network Rail is a company limited by guarantee with members instead of
shareholders.  It is run as a commercial organization, but any operating
surplus is re-invested in the rail network.

Our core focus is the operation, maintenance and renewal of existing rail
infrastructure, with the Strategic Rail Authority taking the lead on
enhancement projects.

We have set clear targets to improve performance and reduce costs, but
safety is always at the forefront of our activities as we rebuild Britain's
railway.

Jarvis

Jarvis plc is a leading provider of support services to the education,
health, transport and other sectors, delivering road and rail infrastructure
services and developing and implementing innovative outsourcing solutions,
primarily through public/private partnerships (PPP).

The Group has two principal operating divisions, Jarvis Infrastructure
Services and Jarvis Accommodation Services, and a joint venture, Agilisys,
which focuses on business process solutions.

Jarvis Infrastructure Services operates in both the rail and road markets
and is the U.K. market leader in rail renewals and maintenance, with
extensive expertise in major projects.  Our specialist road companies are
involved in highways maintenance, manufacturing and installing specialist
products and signage.

Jarvis Accommodation Services provides a full range of solutions to help the
public sector and other providers design, build, maintain and operate
facilities ranging from schools, colleges and student rooms to offices,
health centers and local government property portfolios.  This division also
includes the Group's Plant business.

Agilisys Limited is a Jarvis joint venture with net decisions Limited to
deliver front line service improvements in Jarvis' core public sector
markets, particularly local government and schools.  The business helps the
public sector towards e-government and offers innovative, technology-based
outsourcing.

CONTACT:  FINANCIAL DYNAMICS
          Jon Simmons
          Phone: 0207 269 7278

          JARVIS
          Mike Tate
          Phone: 0207 462 6674
          Mobile: 07710 583623

          TULCHAN
          Andrew Honnor
          Phone: 0207 353 4200


ROYAL & SUNALLIANCE: Confident of Getting Rights Issue Backing
--------------------------------------------------------------
Advisers to Royal & SunAlliance are convinced the planned rights issue will
push through this time despite discouraging initial feedbacks, according to
the Financial Times.

The insurer plans to issue GBP960 million worth of rights next week, less
than a year after it was forced to withdraw similar plans due to lack of
shareholder support.

But this time, Royal & SunAlliance's advisors appear confident that seven of
its main institutional investors, who alone account for more than 40% of the
share register, will support the issuance.  They are also counting on the
backing of U.S. institutional investors -- who controls nearly 30% of the
shares -- despite a plan to exit the North American region.

Initial concerns for the rights issuance arose when Royal & SunAlliance said
it intends to raise another GBP800 million to boost its claims reserves
after the capital raising, mainly for asbestos and other liabilities in the
U.S., according to the report.

But shares in the company, which went down after the announcement of the
deeply discounted rights issue last month, had stabilized last week, closing
at 90 1/4 on Friday.

The exercise is underwritten by Merrill Lynch, Goldman Sachs and Cazenove.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Shareholders  Total    Working
                                   Equity     Assets   Capital
                        Ticker     (US$MM)    (US$MM)   (US$MM)
                        ------   -----------  ------   --------
AUSTRIA
-------
Libro AG                            (111)         174     (182)

BELGIUM
-------
Real Software             REAL       (35)         244       (1)

CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192    (2,186)

DENMARK
-------
Elite Shipping                       (28)         101        19

FRANCE
------
Banque Nationale
   de Paris Guyane                   (41)         352       N.A.
BSN Glasspack                       (101)       1,151       179
Bull SA                   BULP      (760)         893      (130)
Compagnie
   des Machines Bull                (116)         136       (20)
Compagnie Francaise de
   l'Afrique Occidentale             (65)         256        21
Cofidur SA                            (5)         102        19
Dollfus-Mieg & Co.        DOLP        (0)         187        28
European Computer System            (110)         682       377
Grande Paroisse SA                  (927)         629       330
Pneumatiques Kleber SA               (34)         480       139
SDR Picardie                        (135)         413       N.A.
Soderag                               (3)         404       N.A.
Sofal SA                            (305)       6,619       N.A.
Spie-Batignolles                     (16)       5,281        75
St Fiacre (FIN)                       (1)         111       (33)
Trouvay Cauvin            TRCN        (0)         134        10
Usines Chauson                       (23)         249        35

GERMANY
-------
Dortmunder
   Actien-Brauerei        DABG       (13)         118       (29)
F.A. Guenther & Sohn AG   GUSG        (8)         111       N.A.
Kaufring AG               KAUG       (19)         151       (51)
Nordsee AG                            (8)         195       (31)
Schaltbau AG              SLTG       (16)         163        20
Vereinigter
   Baubeschlag-Handel
   Holding AG             VBHG       (24)         307       (63)

ITALY
-----
Binda SpA                 BND        (11)         129       (20)
CIRIO FINANZIARI          CBDI      (422)       1,583      (396) Credito
Fondiario
   e Industriale SpA      CRF       (200)       4,218       N.A.

NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610        46

NORWAY
------
Pan Fish ASA              PAN       (117)         806      (259)
Petroleum-Geo Services    PGO        (32)       2,963    (5,250)

POLAND
------
Animex SA                             (1)         108       (86)
Exbud Skanska SA          EXBUF       (9)         315      (330)
Stalexport SA                        (57)         229       (51)

SPAIN
-----
Altos Hornos de Vizcaya SA          (116)       1,283      (278)
Santana Motor SA                     (46)         223        41
Sniace SA                            (11)         128       (24)
Tableros de Fibras SA     TFI        (43)       2,107       125

SWITZERLAND
-----------
Kaba Holding AG           KABZN      (47)         572       278

UNITED KINGDOM
--------------
Abbot Mead Vickers                    (2)         168       (16)
Alldays Plc               ALD       (120)         252      (202)
Amey Plc                  AMY        (49)         932       (47)
Bonded Coach
   Holiday Group Plc                  (6)         188       (44)
Blenheim Group                      (153)         198       (34)
Booker Plc                BKRUY      (60)       1,298        (8)
Bradstock Group           BDK         (2)         269         5
Brent Walker Group                (1,774)         867    (1,157)
British Energy            BGY     (5,342)       3,438       229
British Nuclear Fuels Plc         (2,627)      36,359     1,948
British Sky Broadcasting  BSY       (175)       3,347      (144)
Compass Group             CPG       (668)       2,972      (298)
Costain Group             COST       (34)         329       (12)
Dawson Holdings           DWSN       (32)         135       (25)
Easynet Group Plc         ESY        (12)         332        53
Electrical and Music      EMI
   Industries Group                 (885)       3,053      (435)
Euromoney Institutional   ERM       (119)         173        20
Gallaher Group            GLH       (543)       5,527        68
Gartland Whalley                     (11)         145        (8)
Global Green Tech Group             (156)         408       (18)
Heath Lambert
   Fenchurch Group PLC               (10)       4,109       (10)
HMV Group PLC             HMV       (211)         762       (66)
Imperial Tobacco Group    ITY       (117)      10,083      (190)
Intertek Testing Services ITRK      (134)         425        67
IPC Media Ltd.                      (685)         254        16
Lambert Fenchurch Group               (1)       1,827         3
Lattice Group                     (1,290)      12,410    (1,228)
Misys PLC                 MSY       (161)         949        41
Orange PLC                ORNGF     (594)       2,902         7
Regus PLC                 RGU        (46)         367       (60)
Rentokil Initial Plc      RTO     (1,130)       2,809       (37)
Saatchi & Saatchi         SSI       (119)         705       (41)  Seton
Healthcare                     (11)         157         0
Yell Group PLC                      (196)       3,964       289


Each Tuesday edition of the TCR-Europe contains a list of companies with
insolvent balance sheets based on the latest publicly available balance
sheet available to our editors at the time of publication.  At first glance,
this list may look like the definitive compilation of stocks that are ideal
to sell short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which equity
securities trade in public market are determined by more than a balance
sheet solvency test.


                            *********


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.  Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2754.

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

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

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


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