/raid1/www/Hosts/bankrupt/TCREUR_Public/010810.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

             Friday, August 10, 2001, Vol. 2, No. 156


                            Headlines

* B E L G I U M *

SABENA SA: Strike Disrupts 84 Flights

* F I N L A N D *

SONERA CORP.: Shares Fall on Downgrade

* F R A N C E *

AIR LIBERTE: Works Council To Consider Social Plan
JOUEF: Workers Demand Liquidation
LUCENT TECHNOLOGIES: To Cut French Staff

* G E R M A N Y *

ADVANCED MEDIEN: In Negotiations With Get AG
BROKAT AG: Posts Wider Net Loss of 824.4MM Euros
KABEL MEDIA: Sells Subsidiary
PRODACTA AG: Hartwig Steps Down From Board
ROLF DITTMEYER: Continues Production

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

VERSATEL TELECOM: To End AEX Listing

* P O L A N D *

GABRIEL: Awaits Insolvency Decision
NETIA HOLDINGS: S&P Places Rating on Watch Negative

* S P A I N *

EPPIC: Stock Market Commission Suspends Eppic

* S W E D E N *

FRAMFAB AB: Approves M.O.R. Share Transfer

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

GRETAG IMAGING: Blames Fall on Poor Management and Weak Economy
SWISSAIR GROUP: IT Unit Replaces SAA Reservation System

* U N I T E D   K I N G D O M *

BRITISH TELECOM: Kent Thexton Is New BT Wireless Officer
CAMMELL LAIRD: Former Directors Bid for Shipyards
CAMMELL LAIRD: PcW Announces Further Job Cuts
CLAIMS DIRECT: Founders in Negotiation With Mystery Buyer
DANKA BUSINESS: Restates Results for Disposals-Related Charge
GLOBALNET FINANCIAL: Sets Takeover Bid Deadline of August 15
ICELAND GROUP: Axes Ernst & Young as Auditor
INDEPENDENT INSURANCE: PPB Extends Insurance Payments
INVENSYS PLC: Moody's Lowers Ratings to Baa2
MARKS & SPENCER: Buys Back 2.5MM Shares
SSL INTERNATIONAL: SFO to Probe Company Results


=============
B E L G I U M
=============


SABENA SA: Strike Disrupts 84 Flights
-------------------------------------

A total of 84 of Sabena's 240 scheduled flights from Brussels
airport were canceled on Wednesday after ground workers went on
strike because of fears of planned layoffs by the troubled
Belgian airline.

According to the Associated Press, the canceled flights were
mostly to European destinations. Sabena also sought to reroute
some European flights to avoid connections in Brussels.

With the strike, passengers were asked to carry their luggage
themselves to the aircraft for loading. Those on flights longer
than 90 minutes were given vouchers to get food at the airport.

More than 300 workers staged a protest march at the airport,
blocking some access roads. The protesters were demanding details
on a restructuring plan that was approved on Monday by Sabena's
board, which reportedly calls for laying off about 2,000 of the
12,000 employees.

The restructuring plan also reportedly calls for selling off some
Sabena holdings, including two hotels in Brussels and Sabena's
catering and cargo services.


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


SONERA CORP.: Shares Fall on Downgrade
--------------------------------------

Shares in indebted telecom operator Sonera tumbled 4.8% at 6.57
euros on Wednesday, hit by a downgrade from a large investment
bank and glum sector sentiment sapping shares across the
continent, according to Reuters' Wednesday edition.

Morgan Stanley Dean Witter earlier cut Sonera to underperform
from outperform, citing its third-generation network obligations.
The investment bank said that if Sonera abandoned its 3G goals,
this would imply a value per share of 8.9 euros.

Sonera needs to pay off 3.25 billion euros in short-term debt at
the end of October. It has a net debt goal of 2.5 billion euros
by the end of the year against 5.1 billion at the end of June.

The firm has so far been selling assets to pay the debt.


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


AIR LIBERTE: Works Council To Consider Social Plan
--------------------------------------------------

The works council of AOM-Air Liberte will meet today to consider
the social plan, leading to 1,853 job losses from a total of
4,559, Le Figaro reported on Wednesday.

According to one of the two legal administrators, redundancy
letters could be sent out as early as August 20.

Holco's plan aims to keep 2,318 employees of the French airlines.
The new company will employ 385 pilots and flying personnel, 864
hostesses and stewards and 1,069 groundstaff.

The Creteil commercial court has authorized Holco to take over
Air Liberte in July.


JOUEF: Workers Demand Liquidation
---------------------------------

The works council of model railway manufacturer Jouef has
requested the commercial court in Salins that the company be
declared in default of payments, the La Tribune & World Reporter
in its August 7 edition said.

Of the company's 61 workers, 58 are opposed to the decision of
parent company Idee Commerciali II to close the site in
Champagnole in France and to regroup the activities with those of
other subsidiaries.

The workers are blockading the site.


LUCENT TECHNOLOGIES: To Cut French Staff
----------------------------------------

U.S. telecom equipment giant Lucent said it would shed at least
410 of its 1,300 staff in France, Reuters reported on Wednesday.

Company officials had met union representatives from the group's
eight French sites to detail the restructuring, which echoes
belt-tightening across Europe and the United States.

Lucent also denied speculations it would abandon its European
business.

The merger talks of loss-making Lucent with French rival Alcatel
collapsed earlier this year, prompting both groups to announce
widespread job cuts and pursue outsourcing at its manufacturing
plants.

Lucent said last month it planned a further 15,000 to 20,000 job
cuts worldwide in a bid to return to profit next year.


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


ADVANCED MEDIEN: In Negotiations With Get AG
--------------------------------------------

With Get AG filing for bankruptcy, the Executive Board of film
rights company Advanced Medien AG will effect value adjustment on
its outstanding receivables of 2.5 million euros, the Frankfurt
Stock Exchange reported on Wednesday.

The management will immediately contact the official receiver in
order to reach a solution regarding the recovery of the
outstanding receivables from Get AG.

Advanced is confident negotiations will result in the restitution
of existing contracts such that the rights sold to Get AG in the
field of video on demand will be recovered.


BROKAT AG: Posts Wider Net Loss of 824.4MM Euros
------------------------------------------------

Software manufacturer Brokat Technologies AG, according to the
Tuesday edition of AFX News, said net losses in the second
quarter to end-June widened to 824.4 million euros from a loss of
22.31 million euros last year as a result of one-off goodwill
write downs of 735.2 million euros.

Late last month, Brokat said EBITDASO (earnings before interest,
tax, depreciation, amortization and stock options) in the second
quarter came in at a loss of 40 million euros, compared to a loss
of 7.5 million euros on sales of 28 million against 22.1 million
in the same period last year.

Brokat attributed the losses to the economic slowdown and slower
investment cycles by potential customers.


KABEL MEDIA: Sells Subsidiary
-----------------------------

Internet agency Kabel New Media AG, according to the Wednesday
edition of the Frankfurt Stock Exchange, has sold its 100% share
in Kabel Team4 GmbH.

The sale is part of the company's ongoing concentration on its
core activities, and took the form of a management buy-out by the
subsidiary's original founding team, including current management
figures.

No details regarding the contractual agreement were released.

The company filed for insolvency proceedings in a Hamburg court
last month. The Swedish Internet consultancy Kabel New Media
Stockholm AB has also filed for bankruptcy, following its
parent's decision to cease payments.


PRODACTA AG: Hartwig Steps Down From Board
------------------------------------------

Dr. Hartwig Graf von Westerholt has resigned from the supervisory
board of IT service provider Prodacta AG, the Frankfurt Stock
Exchange reported on Wednesday. This resignation will take effect
on September 30, 2001.

Westerholt is clearing a space for a person with more economic,
technical and sector specific experience. The supervisory board
now consists of three lawyers.

Earlier, the supervisory board appointed Erwin Leonhardi as
management board spokesman to replace Manfred Metzger-Buschor,
who is retiring on personal grounds.

Prodacta applied for insolvency proceedings following the failure
of negotiations with shareholders and potential investors.


ROLF DITTMEYER: Continues Production
------------------------------------

Insolvent fruit juice producer Rolf H Dittmeyer KG will initially
continue production as talks over the financing of an initial
continuation of business with Bremer Landesbank and Hamburgische
Landesbank are showing a positive trend.

In a report dated August 7, the Financial Times Deutschland said
that administrator Edgar Gronda plans to open negotiations with
potential buyers.

Several companies are said to show serious interest in the
company.



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


VERSATEL TELECOM: To End AEX Listing
------------------------------------

Telecom company Versatel is expecting to be removed from the
Amsterdam Exchange index next year as it is heading for negative
equity, which would result in it being relegated to a special
listing of shares under pressure, Het Financieele Dagblad
reported on Wednesday.

The company's equity amounted to 107.7 million euros at the end
of second quarter, down from 341.3 million euros at the end of
2000.

If the fall continues at the same pace, Versatel's equity will be
negative in October, Het Financieele Dagblad added.


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


GABRIEL: Awaits Insolvency Decision
-----------------------------------

Gabriel, one of Poland's largest chains of cosmetic stores, is
waiting for a court decision on its insolvency, the
Rzeczpospolita & Financial Times reported on Tuesday.

Company founder Gabriel Rokicki said the main reason for the
company's insolvency was excessively rapid development and a
mistrust of grantors of credit.

The company became one of the largest perfumery networks in
Poland, opening 72 shops in the country in three years.


NETIA HOLDINGS: S&P Places Rating on Watch Negative
---------------------------------------------------

Standard & Poor's has on Wednesday placed its single-'B'-plus
long-term corporate credit ratings of fixed-line
telecommunications operator Netia Holdings S.A on CreditWatch
with negative implications.

The rating actions reflect the extreme weakness of Netia's
liquidity, allied to considerable uncertainty about the company's
ability to secure further capital.

Netia's ratings assume that shareholders in general, and 48%
shareholder Telia AB (AA/Negative/A-1+) in particular, will
continue to be financially supportive of the company. Given the
extreme weakness of Netia's share and bond prices, it is probable
that shareholders represent the company's only possible source of
additional capital at this stage.

There is uncertainty at present regarding shareholder intentions
toward the provision of further capital to close Netia's funding
gap.

If it becomes apparent that Netia shareholders, including Telia,
are no longer financially supportive, Netia's ratings are likely
to be lowered below the single-'B' category.


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


EPPIC: Stock Market Commission Suspends Eppic
---------------------------------------------

The Spanish stock market commission (CNMV) has on Monday
suspended the trading of shares in the European Paper and
Packaging Investment Corporation (Eppic), which has been in
liquidation for the past eight years, the August 7 edition of
Expansion & Financial Times said.

The move is a response to uncertainties towards the liquidation
process raised by an arbitrary ruling from the High Court.

The ruling is an attempt to recover the 13.64 million euros the
company owes as part of the case against the management of Grupo
Torras. Should the ruling be carried out, Eppic will be declared
insolvent.


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


FRAMFAB AB: Approves M.O.R. Share Transfer
------------------------------------------

Internet consultancy firm Framfab said on Wednesday it approved
the transfer of all shares in M.O.R., Marknadsoch Reklambyran AB,
from the Framtidsfabriken subsidiary Rauer & Hammar AB to the
management and staff at M.O.R.

It also approved the board's proposal to transfer all shares in
Framfab AS in Norway to Skipper Invest AS, and transfer 70% of
shares in Plinq B.V. from the Framtidsfabriken subsidiary Netlinq
Framfab N.V. to Stichting Plebs Incorporated.
  
The move is in line with the company's plan to focus Framfab's
activities on Internet consulting.

Last month, Framfab sold the main part of Framfab Labs, its
subsidiary Framfab Spain S.L., and divested its stakes in the
Dutch companies Coin and Plinq, and Framfab S.p.A. in Italy to
restore profitability.


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


GRETAG IMAGING: Blames Fall on Poor Management and Weak Economy
---------------------------------------------------------------

Despite Gretag Imaging Holding AG's attempts to refocus its
direction, the photofinishing group still has much to prove to
investors after a poor 2000 and an even gloomier 2001 was blamed
on poor management and a weak U.S. economy.

In a Wednesday report, the Dow Jones Newswires said that a recent
financing round was little more than interim relief and the
possibility of a takeover also appears to have receded as debt
has mounted.

Gretag hopes its digital photofinishing laboratory Cyra Systems
that can produce 10,000 to 20,000 photos an hour and its Photohup
laboratory, which will be launched in the third or fourth quarter
this year, will turn the company's fortunes around.

According to company spokesman Kurt Muenger, the Cyra Systems
will cost up to one million francs. Muenger did not give a price
range for Photohup.

The company's dramatic fall was blamed on poor management by
Gretag's three founding shareholders, Eduard Brunner, William
Recker and Hans- Rudolf Zulliger. Analysts say they had
concentrated too much on growth and had not paid adequate
attention to financial controls.


SWISSAIR GROUP: IT Unit Replaces SAA Reservation System
-------------------------------------------------------

Swissair Group's information technology unit Atraxis has replaced
South African Airways' reservation system with its own axsRes
system, Reuters reported on Wednesday.

The move is part of an agreement wherein Atraxis will take
overall responsibility for SAA's information systems.

Swisair is in the process of negotiating a merger of Axtraxis
with Lufthansa AG's IT business.


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


BRITISH TELECOM: Kent Thexton Is New BT Wireless Officer
--------------------------------------------------------

British Telecom announced on Wednesday that Kent Thexton would
become the chief marketing and data officer for BT wireless.

Thexton will be responsible for delivering mobile data leadership
and next generation services for the group's mobile
telecommunications division. He will also report to BT wireless
chief executive officer Peter Erskine and work closely with all
the operating businesses.

The new officer joined BT Cellnet as marketing director in 1998
where he was instrumental in the rebranding of the business and
the launch of BT Cellnet's pre-pay proposition. Before this role,
he spent eight years in the Canadian mobile industry as Chief
Operating Officer and Vice-President of Marketing at Rogers AT&T.
His previous experience included Northern Telecom and Bell
Canada.


CAMMELL LAIRD: Former Directors Bid for Shipyards
-------------------------------------------------

Three former directors of ship-repair group Cammell Laird has
tabled a bid on Wednesday for the group's Birkenhead and Tyneside
yards, according to the Financial Times.

Cammell's former group operations director John Syvret,
development director Brett Martin and former engineering director
and Tom Williams said they had secured financial backing to re-
open the yards in the north-east and in Birkenhead from Aberdeen
Murray Johnstone private equity.

No figure was disclosed for the bid.

The team plans to concentrate on ship repair, refitting and
conversion, which provided steady income for Cammell before it
went into receivership in April after the loss of a 50-million-
pound Italian cruise ship contract. It also plans to take on an
initial 200 to 250 former Cammell workers, and reopen the yards
by the end of this month if the offer is accepted.

Syvret, Martin and Williams are competing with former Cammell
directors for the Birkenhead yard.


CAMMELL LAIRD: PcW Announces Further Job Cuts
---------------------------------------------

Cammell Laird receiver PriceWaterhouseCoopers, appointed by the
ship repair group's biggest creditor Royal Bank of Scotland, has
announced a further 24 job cuts at the Birkenhead yard on
Wednesday.

The Financial Times reported that barely 200 jobs remain from a
workforce of 4,000.

Outstanding contracts at the yards were completed this month,
leaving most remaining staff carrying out care and maintenance
work.


CLAIMS DIRECT: Founders in Negotiation With Mystery Buyer
---------------------------------------------------------

Two founders of personal injury specialist Claims Direct remained
locked in talks with an unnamed third party interested in buying
part of their stake.

Based on a Wednesday report, the Financial Times said that Colin
Poole and Tony Sullman were considering a proposal that would see
them dilute their 43% stake, resign from the board, and drop
their hostile bid for the company.

Poole and Sullman launched last month a 10p a share bid to take
Claims Direct private.

The third party has not been named, although speculation has
centered on private investor Simon Ware-Lane, who already holds
4%.


DANKA BUSINESS: Restates Results for Disposals-Related Charge
-------------------------------------------------------------

Independent supplier of office imaging equipment Danka Business
Systems PLC has restated its results for the fourth quarter and
the last full year to account for an extra 4.1 million sterling
charge related to a changed valuation on disposals in the US, the
Wednesday edition of AFX News said.

As a result, the group's operating loss for the year to March was
widened to 78.7 million sterling from a previously reported loss
of 74.6 million sterling.

The pretax loss was amended to 138.8 million, while the loss per
share for the fourth quarter was revised to 26.8 pence and the
full year to March 31 to 55.9 pence.

Danka continues to focus on debt reduction and they will review
all opportunities to reduce its debt.


GLOBALNET FINANCIAL: Sets Takeover Bid Deadline of August 15
------------------------------------------------------------

AI Softw@re, according to The Times yesterday, has until August
15 to make a formal bid for the control of online financial
information provider GlobalNetFinancial.

AI Softw@re, an Italian technology company that holds an 11.5%
stake in GlobalNet, intends to offer 55 cents per share in the
target company, valuing it at $13.7 million.

NewMedia SPARK, which has been attempting to reach agreement with
GlobalNet since June, initially valued the group at 55 cents per
share but revised its bid to an all-cash deal worth $9 million.

Both bidders are fighting to wring out the value of GlobalNet's
assets, which include Internet floatation site EO and financial
data provider Synaptic Systems.

NewMedia SPARK's bid for GlobalNet will lapse on August 22.

GlobalNet is undergoing a restructuring of its business to
significantly reduce cash burn. The company reported a first
quarter loss of $23.6 million, compared to a loss of $5.8 million
in first quarter 2000.


ICELAND GROUP: Axes Ernst & Young as Auditor
--------------------------------------------

Frozen-food retailer Iceland has dropped its auditors Ernst &
Young, according to the Tuesday edition of Namnews.

Shareholders will be asked to approve the appointment of
PricewaterhouseCoopers as new auditors at the company's annual
meeting in September.

There is no suggestion of any wrongdoing or negligence by Ernst &
Young.

Iceland is facing an investigation by the UK Listing Authority
into announcements made by the company over the past year. It is
also being investigated by the Department of Trade and Industry
into share dealings by founder and former chairman Malcolm
Walker.


INDEPENDENT INSURANCE: PPB Extends Insurance Payments
-----------------------------------------------------

Independent Insurance's policyholders, who are owed an estimated
40 million euros following the group's collapse, will receive
payments from the Policyholders Protection Board, the Financial
Times reported on Wednesday.

UK's insurance compensation body agreed to extend compensation
payments to eligible policyholders in Ireland as well as those in
the UK to reassure many policyholders who have been worried since
Independent Insurance's collapse.

PPB added it was unlikely to pay out to former Independent
policyholders in Spain.

However, there had been doubts as to whether the board could pay
out to any of the 9,000 policyholders and 720 businesses insured
in the Irish Republic.


INVENSYS PLC: Moody's Lowers Ratings to Baa2
--------------------------------------------

Moody's Investors Service has on Wednesday reduced the long-term
debt ratings of engineering group Invensys from Baa1 to Baa2, the
Financial Times reported.

The downgrade, which reflected a prolonged period of depressed
operating performance, elevated leverage and heightened
competitive pressures for the company, affects some $3.7 billion
of outstanding debt securities.

The FT further said that Moody's expected the company to endure
an extended period of weak operating results and depressed cash
flows because of difficult market conditions in many of its
markets.

Moody's said the new credit rating assumed that Invensys would be
able to continue to avail of its credit lines at their current
level, but that it remained vulnerable to higher borrowing costs
because of its short term debt profile.


MARKS & SPENCER: Buys Back 2.5MM Shares
---------------------------------------

Marks & Spencer PLC has further purchased for cancellation 2.5
million of its own shares from house broker Cazenove & Co Ltd at
a price of 244.952 pence per share, the AFX News reported on
Wednesday.

The troubled retail giant has purchased 5.6 million shares at
prices ranging from 238 pence to 249 pence since its AGM trading
statement on July 11.

The retailer has shareholder authority to repurchase up to 10% of
its shares, the news agency added.


SSL INTERNATIONAL: SFO to Probe Company Results
-----------------------------------------------

The Serious Fraud Office will launch an investigation into the
overstatement of results at healthcare group SSL International,
the Financial Times reported on Wednesday.

The SFO and the Cheshire police will examine whether there is any
evidence of criminal offences by employees or former employees of
the group.

The company, which makes Scholl sandals and Durex condoms, has
admitted sales had been overstated by 22 million pounds and
profits before tax and exceptionals by 19 million pounds in 1999
and 2000.

An investigation by professional services firm KPMG and law firm
DLA is understood to have found the results were inflated by
booking unconfirmed sales in the UK operations. The SFO has been
examining the findings of the KPMG and DLA inquiry since last
month.

Over the past nine months, SSL has issued two profit warnings and
seen several senior executives leave. After the second profit
warning, former chief executive Iain Cater was ousted.

                                  ***********

        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,
Salve M. Mordeno and Ma. Cristina D. Pernites, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2754.

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