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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, August 17, 2001, Vol. 2, No. 161


                            Headlines

* A U S T R I A *

MAYR-MELNHOF: To Close Swiss Unit

* B E L G I U M *

LERNOUT & HAUSPIE: Holders to Set Up New Company
MCMS COLFONTAINE: Faces Uncertain Future

* F I N L A N D *

SONERA CORP.: To Cease NMT 450 Operations in 2002
SONERA CORP.: Turkcell Unit Sees No Borrowing Until 2002

* F R A N C E *

AIR LIBERTE: Swissair to Resume Payment on August 19
AMF BOWLING: Appoints Frederick Kraegel as New SVP
COMPLETEL EUROPE: Moody's Places Ratings on Downgrade Review

* G E R M A N Y *

ADAM OPEL: To Cut Production, Close Factory and Eliminate Jobs
BANKGESELLSCHAFT BERLIN: Board Okays Restructuring Concept
BANKGESELLSCHAFT BERLIN: Net Profit Falls to 52MM Euros
BANKGESELLSCHAFT BERLIN: NORD/LB Readies BBG Merger
ROLF DITTMEYER: In Negotiations With Eight Companies
ZEMAG GMBH: Has New Owner

* I T A L Y *

POLIGRAFICI EDITORIALE: Press Alliance Inks Restructuring Deal

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

AND INTERNATIONAL: Court Okays Rescue Plan
KPN NV: Sells Telegram Unit to Reduce Debt
UNITED PAN-EUROPE: Investors Fear Over Company's Future


* S P A I N *

FENOSA SA: Mulls Asset Sale
HUARTE: Prosecution Requests Six-Year Jail Term for Huarte Chiefs

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

4M TECHNOLOGIES: Files for Creditors Protection
SWISSAIR GROUP: To Sell Md-11s and Buy Airbuses

* U N I T E D   K I N G D O M *

BRIDGE INFORMATION: Judge Approves Poaching Pact
ESK FOODS: Crashes Into Receivership
SCOTIA HOLDINGS: E&Y Sells Foscan to Singapore Group


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


MAYR-MELNHOF: To Close Swiss Unit
---------------------------------

Cardboard packaging and folding box manufacturer Mayr-Melnhof
plans to close Swiss cardboard manufacturer Emil Christ,
resulting in 115 job losses, the August 11 edition of Die Presse
said.

According to Mayr-Melnhof chairman Michael Groeller, the Swiss
company's heavy losses had pushed it to the brink of bankruptcy.


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


LERNOUT & HAUSPIE: Holders to Set Up New Company
------------------------------------------------

A group of Lernout & Hauspie Speech Technology NV shareholders
wants to set up a new company to acquire L&H's core technology
assets and raise $50 million in working capital, the August 14
edition of Dow Jones Newswires said.

The group said that potential investors are working on a business
plan that could save 350 of the 600 jobs at L&H's speech and
language technology division.

Belgian investor Tony Gram said he is willing to invest 25% of
the $50 million working capital needed for the new company, while
a non-Belgian bank agreed to invest 50%.

L&H's speech and language technology division currently has a
cash burn rate of $900,000 a week.


MCMS COLFONTAINE: Faces Uncertain Future
----------------------------------------

The Colfontaine (Belgium) site of US electronics manufacturing
services provider MCMS is facing an uncertain future, according
to Les Echos' August 10 edition.

As MCMS Colfontaine awaits decisions from the US, the possibility
of court protection from creditors is already being considered
and bankruptcy cannot be ruled out.


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


SONERA CORP.: To Cease NMT 450 Operations in 2002
-------------------------------------------------

Indebted telecoms operator Sonera Corporation on Wednesday said
it would terminate the maintenance of the NMT 450 mobile phone
network on December 31, 2002. Its customers have continued to
decrease since they have transferred to the GSM network.

The termination of the NMT 450 network will not have any effects
on personnel numbers.

Meanwhile, 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 its debt.


SONERA CORP.: Turkcell Unit Sees No Borrowing Until 2002
--------------------------------------------------------

Sonera-owned Turkcell, Turkey's largest mobile phone operator,
was confident it can finance a huge dollar debt load this year
without new borrowing, the August 10 edition of Reuters said.

As of June 30, Turkcell had a consolidated currency debt of
$1.862 billion.


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


AIR LIBERTE: Swissair to Resume Payment on August 19
----------------------------------------------------

Aviation giant Swissair, which owned 49.5% of AOM-Air Liberte,
will resume the bulk of payments promised to the French airlines
on August 19 if no appeals are filed over the rescue package, the
August 14 edition of Agence France-Presse said.

A French commercial court on August 1 has selected former Air
France pilot Jean-Charles Corbet through a company called Holco
to take over bankrupt AOM-Air Liberte.

On August 2, Swissair made a 7.6-million-euro payment to AOM-Air
Liberte, but if no appeals are lodged during a 10-day period that
began on August 8, it will begin paying an additional 198 million
euros in stages from August 19.


AMF BOWLING: Appoints Frederick Kraegel as New SVP
--------------------------------------------------

Frederick Kraegel has joined AMF Bowling, the largest bowling
company in the world, as Senior Vice President and Chief
Administrative Officer effective August 13.

Kraegel has extensive experience as a senior financial and
administrative executive. He was President of ARIEL, Inc., a
partner at Peat Marwick Mitchell & Co. (now KPMG LLP), and Senior
Vice President and Chief Financial Officer of Best Products Co.

In an August 8 statement, AMF said that Chief Financial Officer
Stephen Hare has resigned from his post, effective August 31. AMF
Vice President and Treasurer Chris Caesar has been promoted to be
the company's new CFO.

AMF Bowling Worldwide and its U.S subsidiaries in July filed for
reorganization under Chapter 11 of the U.S. Bankruptcy Code.


COMPLETEL EUROPE: Moody's Places Ratings on Downgrade Review
------------------------------------------------------------

Moody's Investors Services on Monday placed the ratings of
telecommunications operator Completel Europe N.V. under review
for possible downgrade.

Moody's currently rates Completel's senior long-term debt B3,
with its bonds rated one notch lower at Caa1.

The credit ratings agency's review was prompted by concern
regarding the company's ability to grow revenues and cash flows
in line with expectations and to a level sufficient to service
its debt obligations.


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


ADAM OPEL: To Cut Production, Close Factory and Eliminate Jobs
--------------------------------------------------------------

Adam Opel AG, the German unit of General Motors Corp., plans to
cut production 15% by 2003, close one major factory and eliminate
thousands of jobs to save 2 billion euros, Bloomberg reported on
Wednesday.

The proposal will eliminate production capacity of 300,000 to
350,000 vehicles a year. A factory shutdown would also cost
thousands of jobs.

Dubbed as Project Olympia, the plan also calls for cuts in sales
and administrative jobs and a reorganization charge of at least 1
billion euros. Final details will be decided by the end of
September, following discussions with workers' representatives.

The carmaker's works council, represented on the supervisory
board, rejected the plan of shutting a plant or firing workers in
order to reduce costs. It said that workers should not have to
bear the brunt of management's mistakes.


BANKGESELLSCHAFT BERLIN: Board Okays Restructuring Concept
----------------------------------------------------------

Bankgesellschaft Berlin AG said that its Supervisory Board has
approved the company's restructuring concept at its Wednesday
meeting.

The concept serves as a basis for the implementation of
structural measures within the group and as a foundation for a
restructuring concept to be submitted to the EU Commission within
six months.

The restructuring concept also aims to restore the bank to
profitability, return the equity resources to the owners and
improve transparency.


BANKGESELLSCHAFT BERLIN: Net Profit Falls to 52MM Euros
-------------------------------------------------------

First-half profits of Bankgesellschaft Berlin (BBG), the crisis-
hit German bank, were halved to 52 million euros from 100 million
euros a year earlier, the Wednesday edition of the Financial
Times said.

BBG has been hit by losses on its property portfolio, forcing it
to seek a 4-billion-euro capital injection from majority
shareholder the state of Berlin to stave of collapse.

The bank's board is currently reviewing a bid by Norddeutsche
Landesbank to increase its stake in BBG.


BANKGESELLSCHAFT BERLIN: NORD/LB Readies BBG Merger
---------------------------------------------------

Norddeutsche Landesbank said on August 13 it is ready to merge
with Bankgesellschaft Berlin.

A suitable offer will be submitted to the State of Berlin.

The bid has been discussed with the Deutsche Sparkassen- und
Giroverband (German Savings Bank and Giro Association), and the
offer also leaves room for other solutions with members of the
Sparkasse organisation.

NORD/LB's supervisory board will decide whether the bank will
participate in the capital increase as part of the existing
consortium agreement on the strategic alliance between NORD/LB
and Bankgesellschaft Berlin.


ROLF DITTMEYER: In Negotiations With Eight Companies
----------------------------------------------------

Seven to eight companies have so far expressed an interest in
buying German beverage group Rolf H. Dittmeyer KG, Die Welt &
World Reporter in its August 14 edition said.

Insolvency trustee Edgar Gronda admitted that a likely buyer was
Sportfit GmbH & Co KG, another German beverage group.

Despite the insolvency proceedings, Dittmeyer continues to
produce and sell its fruit juices.


ZEMAG GMBH: Has New Owner
-------------------------

Manfred Hecht has bought mechanical engineering and plant
construction company Zeitzer Maschinen, Anlagen, Geraete Zemag
GmbH at an undisclosed amount, the August 14 edition of
Frankfurter Allgemeine Zeitung said.

According to Hecht, managing director of the wind power plant
construction company Genesys GmbH, Zemag will continue to operate
independently and will reincorporate as Zemag-01 GmbH.

In 1995, Treuhandanstalt sold Zemag to Lintra-Beteiligungsholding
GmbH, which went bankrupt two years after. The state-owned
privatization institution then resold Zemag to the Hamburg-based
businessmen Peter Lobeck and Peter Jacobi.

In December 2000, it filed for insolvency proceedings.


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


POLIGRAFICI EDITORIALE: Press Alliance Inks Restructuring Deal
--------------------------------------------------------------

Presse Alliance, the French publishing company controlled by
Italian printing and publishing group Poligrafici Editoriale, has
reached an agreement with trade unions over the restructuring
plan for the company, the August 15 edition of Il Sole 24 Ore
said.

The plan includes laying off 72 employees.

Its French controlled companies mainly caused losses at
Poligrafici, which closed the first quarter of 2001 in the red by
L11.7 billion.

Presse Alliance publishes the French newspaper France Soir.


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


AND INTERNATIONAL: Court Okays Rescue Plan
------------------------------------------

The Rotterdam county court has approved the proposed rescue plan
of receiver Jeroen Princen for Dutch electronic publisher AND
International Publishing, the Het Financieele Dagblad & World
Reporter in its August 10 edition said.

The bondholders, representing 50 million euros of credit, as well
as the remaining creditors, have agreed to Princen's proposals.

Creditors agreed to exchange their bonds for AND shares. They
will receive 10,000 AND shares worth 0.01 euros each for each Fl
1,000 bond. The stake of the current shareholders will dilute to
about 5% as a result of the conversion.


KPN NV: Sells Telegram Unit to Reduce Debt
------------------------------------------

Royal Dutch KPN NV has sold its telegram services to Unitel, a
small Dutch company, for an undisclosed amount, Dow Jones
Newswires reported on Wednesday.

KPN is selling its non-core assets to reduce its 23-billion-euro
net debt.

The troubled telecommunications company was reportedly in talks
with several parties to sell its 75% stake in Hungarian
telecommunications service provider PanTel Rt.


UNITED PAN-EUROPE: Investors Fear Over Company's Future
-------------------------------------------------------

Shares in cable group United Pan-Europe Communications, according
to the Wednesday edition of the Financial Times, fell nearly 16%
as investors signaled concern over the company's future in the
wake of chairman Mark Schneider's resignation. Its shares have
fallen 90% this year.

Their concern reflects the task the successor will face in
turning round the fortunes of the group following the chairman's
Tuesday announcement to step down.

Although United Pan-Europe maintains it will profit in 2002 and
free cash flow profit in 2004, analysts said few shareholders
were willing to gamble given a $7.3 billion debt, second-quarter
losses and the prospect of negative equity.


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


FENOSA SA: Mulls Asset Sale
---------------------------

Spanish electricity company Union Electrica Fenosa SA is planning
for an asset sale of around 1.6 billion euros, the August 13
edition of Dow Jones Newswires.

The move is aimed at reducing its debt.


HUARTE: Prosecution Requests Six-Year Jail Term for Huarte Chiefs
-----------------------------------------------------------------

The prosecution in the case involving Spanish construction
company Huarte has requested a six-year prison sentence for
chairman Mario Caprile and chief executive Joaquin Casasus, the
August 2 edition of Expansion & World Reporter said.

Caprile and Casasus were accused of misappropriating funds and
fraud that led to Huarte suspending payments in 1995 with debts
of more than 540 million euros.
   
The prosecution also calls for both executives to be barred from
having business powers and for Huarte and the KPMG Peat Marwick
auditor to also be convicted.

The prosecution represents 15 companies that were affected by the
suspension of payments.


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


4M TECHNOLOGIES: Files for Creditors Protection
-----------------------------------------------

Optical disk equipment maker 4M Technologies AG filed in court
for protection from creditors as it has failed to obtain fresh
funding from banks and investors, according to the Wednesday
edition of Dow Jones Newswires.

Problems of 4M Technologies began in November of last year,
following a sharp drop in demand for production systems for
recordable CDs.


SWISSAIR GROUP: To Sell Md-11s and Buy Airbuses
-----------------------------------------------

Aviation group Swissair still plans to sell its 19 MD-11
airliners to FedEx Corp and buy new Airbuses to upgrade its
service, the August 12 edition of Reuters said.

Swissair's new chairman and chief executive officer Mario Corti
has vowed to improve service to help restore profitability at the
group, which reported a 2000 loss of 2.9 billion Swiss francs.

Much of the loss came from Swissair's participations in loss-
making European regional carriers, including Belgium's Sabena and
France's AOM-Air Liberte.

The phase-out will start next year, and will last until 2006.


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


BRIDGE INFORMATION: Judge Approves Poaching Pact
------------------------------------------------

Bankruptcy judge David McDonald has approved an agreement by
Bridge Information Systems Inc., which has filed for Chapter 11
bankruptcy in February, Reuters Group PLC and SunGard Data
Systems Inc., regarding alleged employee poaching at one of
Bridge's units, Dow Jones Newswires reported on Wednesday.

In a lawsuit filed last month, Bridge and Reuters accused SunGard
of poaching employees from Bridge Trading. Three top executives
left for SunGard, including former Bridge Trading President and
Chief Executive Mark Minister.

Per agreement, SunGard cannot hire any Bridge employee until
March 1, 2002, unless it gets written consent from Bridge and
Reuters, whose permission will be needed once its purchase of
some Bridge assets is finalized.

SunGard must also hand over confidential information that it
received from Bridge, except those that relate to assets that
SunGard is buying from Bridge.

The judge further approved a request by Bridge to sell its 45%
interest in FutureSource/Bridge LLC to Merrill J. Oster for
$551,291.

Reuters was named in May as the winning bidder for many of
Bridge's assets, including Bridge Trading. Dow Jones & Co. and
SunGard have also been named winning bidders for some of Bridge's
assets.


ESK FOODS: Crashes Into Receivership
------------------------------------

Esk Frozen Foods, a supplier of a variety of frozen vegetables
and fruit, crash into receivership on Monday, the August 14
edition of The Scotsman newspaper & World Reporter said.

Receiver Blair Nimmo of KPMG Corporate Recovery blamed increasing
domestic and international competition, as well as consolidation
within the food-processing sector, for Esk's plight.

Nimmo said the threat to Esk came from Belgium and The
Netherlands where producers were selling their products below
cost.

The receiver added Esk could be saved by becoming part of a
larger group where costs can be reduced while also keeping close
to suppliers of produce.


SCOTIA HOLDINGS: E&Y Sells Foscan to Singapore Group
----------------------------------------------------

Administrator Ernst & Young of biotechnology group Scotia
Holdings has found a buyer for its head-and-neck cancer drug,
Foscan, and its related technology to a subsidiary of Singapore
Technologies, the Wednesday edition of the Financial Times said.

Ernst & Young did not disclose the value of the deal.

Under the deal, Scotia will receive a mixture of upfront and
milestone payments and a graduated royalty stream based on future
sales.

Ernst & Young added it was still in talks with a number of
parties over the sale of Scotia's satiety drug pipeline,
including Olibra.

Scotia was pushed into administration in January with debts of
more than $71.4 million after European and US regulators withheld
the approval for Foscan.

                                 ***********

         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-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
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Copyright 2001.  All rights reserved.  ISSN 1529-2754.

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