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

                           E U R O P E

           Tuesday, September 18, 2001, Vol. 2, No. 182


                            Headlines

* B E L G I U M *

CITY BIRD: Delays Restructuring Plan Meeting
PCB SA: Widens Half-Year Loss to BFr23.81MM

* D E N M A R K *

SCANBOX ENTERTAINMENT: VCL Film Restructures Scanbox Assets

* F I N L A N D *

SONERA CORP.: Group 3G to Build UMTS Networks With E-Plus

* F R A N C E *

AMF BOWLING: Files Reorganization Plan
VALEO SA: To Open German Electronics Plant

* G E R M A N Y *

ADAM OPEL: GM Agrees to Restructuring of Adam Opel
DAIMLERCHRYSLER: To Keep U.S. Plants Open
DAIMLERCHRYSLER: To Stop Jeep Output This Week
MEDIANTIS AG: Booxtra Will Pay DM7MM for Mediantis Operations

* N O R W A Y *

ENITEL ASA: Faces Mass Redundancies

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

4M TECHNOLOGIES: Gets Court Reprieve
SWISSAIR GROUP: U.S. Flights Canceled on Friday
SWISSAIR GROUP: Government Rules Out State Financial Aid

* U N I T E D   K I N G D O M *

BRITISH TELECOM: Appoints New BT Ignite Chief
BRITISH TELECOM: Faces Pressure to Revamp Property Sale EQUITABLE
LIFE: To Announce Compromise Deal This Week
HARNISCHFEGER INDUSTRIES: Posts Third-Quarter Operating Results
HUNTINGDON LIFE: Regulators Allow Investors Anonymity
KINGFISHER PLC: Investors Demand CEO Resignation
MARCONI PLC: Cooperates With Unions Over Job Cuts
MARCONI PLC: To Meet With Creditors This Week
PSINET INC: Agrees to Sell Metamor Assets to CIBER
UNIQ PLC: Issues Second Warning


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


CITY BIRD: Delays Restructuring Plan Meeting
--------------------------------------------

Belgian airline City Bird Holding has postponed its general
shareholders' assembly on its restructuring plan to September 26,
Dow Jones Newswires reported on Friday.

The group's creditors, including Boeing Co.'s Boeing Capital unit
and leisure company Thomas Cook, will also decide on whether to
accept the plan in the meeting.

Earlier this month, the Troubled Company Reporter Europe said
that Thomas Cook is in discussion with City Bird Holding to
acquire the assets and operations of Belgian charter airline City
Bird for about 400 million Belgian francs.

A Belgian commercial court has granted City Bird Holdings
protection from its creditors in early July through to September
26.

City Bird operates 12 commercial aircraft and employs more than
600 people.


PCB SA: Widens Half-Year Loss to BFr23.81MM
-------------------------------------------

Net loss of Belgian pharmaceuticals distributor PCB widened to
BFr23.81 million, from BFr6.89 million last year, according to
the Sunday edition of L'Echo/FT Information.

The group has put the loss down to increased fuel prices and
development costs for the installation of a new piece of
operating software that will be in place at all of the group's
establishments from November 1.

Turnover rose by 6.4% to BFr5.7 billion, mainly due to an
increase in the price of drugs.



=============
D E N M A R K
=============


SCANBOX ENTERTAINMENT: VCL Film Restructures Scanbox Assets
-----------------------------------------------------------

German media company VCL Film Medien AG, which acquired Scanbox
Entertainment last year, has integrated all of the Danish
company's operational assets into a new wholly-owned subsidiary,
according to the September 13 edition of Frankfurter Allgemeine
Zeitung.

The move comes after the Danish banks refused to extend their
lines of credit to the film and music distributor.

The Scanbox operations not in problems were hived off in a
separate company on September 1, while the remaining operations
are subject to an administration order today.


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


SONERA CORP.: Group 3G to Build UMTS Networks With E-Plus
---------------------------------------------------------

Sonera on Friday said that its German associated company Group 3G
and E-Plus have agreed to build UMTS networks in Germany. E-Plus
and Group 3G will utilize common network elements, such as
antennas, cables, transmitters, receivers and radio network
controllers.

The agreement, expected to take place within a month, is subject
to Board approvals from both Group 3G and E-Plus.

With the cooperation, Group 3G is estimated to save approximately
over a third of its overall network investment costs in Germany.

Sonera, an international forerunner in mobile communications and
mobile-based services and applications, has recently sold
millions of its shares, including Deutsche Telekom AG, to reduce
company debt.


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


AMF BOWLING: Files Reorganization Plan
--------------------------------------

AMF Bowling Worldwide, Inc. on August 31 filed its proposed plan
of reorganization and disclosure statement with the U.S.
Bankruptcy Court for the Eastern District of Virginia.

AMF Bowling Worldwide and its U.S. subsidiaries filed voluntary
petitions for reorganization under Chapter 11 on July 2, 2001.

If completed, the reorganization plan would provide the senior
secured lenders with recovery of their approximately $620 million
in claims through a combination of equity, subordinated notes,
and either senior notes or cash in lieu of those notes. Unsecured
creditors would receive warrants to acquire 12% of the equity in
the reorganized company.

AMF Bowling Worldwide would not make a distribution to AMF
Bowling, Inc., the parent company. As previously announced, AMF
Bowling, Inc. filed a separate petition under Chapter 11. It is
unlikely that holders of the common stock or the zero coupon
convertible debentures of AMF Bowling, Inc. will receive any
recovery in that proceeding.

AMF is the largest bowling company in the world. It owns and
operates 516 bowling centers worldwide, with 399 centers in the
U.S. and 117 centers in ten other countries. AMF is also a world
leader in the manufacturing and marketing of bowling products.


VALEO SA: To Open German Electronics Plant
------------------------------------------

French car parts supplier Valeo will open a new electronics
engineering plant in Bietigheim, Germany, as part of a 50-
million-euro investment program in the country, the September 14
edition of Dow Jones Newswires said.

The plant will be staffed by 400 employees and is in line with
the company's drive increase sales of electrical and electronic
parts to 70% from the current 55%.

The group, which posted an interim net loss of 185 million euros
on a turnover of 5.47 billion euros in July, said it would focus
on its mechanical and thermal, distribution, and electric and
electronics sectors.

Valeo sold in June its Filtrauto unit to Italian automotive
filter supplier Sogefi, and its truck signal lighting operations
in August.


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


ADAM OPEL: GM Agrees to Restructuring of Adam Opel
--------------------------------------------------

The European management of U.S. carmaker General Motors Corp and
the group's European works council have agreed over the
restructuring of its German subsidiary Adam Opel AG, its British
operations Vauxhall Motors Ltd, and Swedish subsidiary Saab AB,
Suddeutsche Zeitung/FT Information reported on Sunday.

A month ago, Opel forecasted that its Olympia restructuring
program would help the group to achieve turnaround. The plan
calls for a cut in the production by 15%, or between 300,000 and
350,000 cars per year.

Opel posted losses of DM835 million last year.


DAIMLERCHRYSLER: To Keep U.S. Plants Open
-----------------------------------------

DaimlerChrysler AG chairman Juergen Schrempp said the company has
resolved to keep their plants in America open and productive,
according to the September 14 edition of Dow Jones Newswires.

Its Chrysler plants were all idled on Tuesday, resulting in the
loss of about 3,600 units of production.


DAIMLERCHRYSLER: To Stop Jeep Output This Week
----------------------------------------------

DaimlerChrysler AG's Chrysler Group said that it would stop
building Jeep Grand Cherokee sport-utility vehicles this week at
the company's Jefferson North Assembly Plant in Detroit due to
high inventories, according to the September 14 edition of Dow
Jones Newswires.

Company spokesman Trevor Hale said the plant would return to
normal production levels the following week. He added other
assembly plants would be running on normal schedules.

Last month, the company reduced starting prices for the Grand
Cherokee by about $2,000 and trimmed prices on many other models.

The decision to cut back Grand Cherokee production and to cut
prices reflects the tougher competition in the midsize sport-
utility segment with Ford Motor's redesigned Explorer and Toyota
Motor's Highlander.


MEDIANTIS AG: Booxtra Will Pay DM7MM for Mediantis Operations
-------------------------------------------------------------

German Internet book retailer Mediantis, according to the Sunday
edition of Suddeutsche Zeitung/FT Information, will stop
operating and sell its buecher.de activities to rival company
Booxtra, following a failed business strategy.

Booxtra will pay between 5 million and DM7 million for the
buecher.de operations of Mediantis, which will lay off its entire
workforce as part of the closure.


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


ENITEL ASA: Faces Mass Redundancies
-----------------------------------

As many as 149 more staff will be made redundant at Norway's
second largest fixed telephony provider Enitel, according to the
Friday edition of Dagens Naeringsliv/FT Information.

The staff members are now hoping Swedish telecoms group Telia
will save the company. The remaining Enitel staff hopes to work
for Enitel Drift AS, launched to take over Enitel's operations

Earlier, Enitel sold its two divisions for application service
provision (ASP) and systems integration for 17 million Norwegian
krone.

The company has been close to liquidation due to an ambitious
expansion program, poor administration and the difficult
financial markets. If Enitel is declared insolvent, it will
affect not only the private debenture investors, but also perhaps
the banks, including Nordic banking group Nordea, that lent the
capital to investors.  
  
Enitel's bank debts currently total 1.45 billion Norwegian krone.


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


4M TECHNOLOGIES: Gets Court Reprieve
------------------------------------

4M Technologies, one of the world-leading manufacturer of
production systems for optical discs, has won a brief extension
of its court protection from creditors, Dow Jones Newswires
reported on Friday.

A judge granted the reprieve while he considers a new plan that
would give creditors compensation representing 20% of their
loans. If approved, the plan would give the company a fresh start
in finding a partner.

4M Technologies recently posted a net consolidated loss of
CHF18.9 million at the end of June 2001 (refer to
http://bankrupt.com/misc/4m_technologies.pdffor the company's  
financial statement).

The lack of sufficient working capital financing and a lack of
support from the banks lead to delays in delivery and in extreme
cases, to the unfortunate cancellation of orders. This resulted
in a drop in net sales to CHF19.9 million during the period,
compared to CHF84.8 million for the first half-year of last year.


SWISSAIR GROUP: U.S. Flights Canceled on Friday
-----------------------------------------------

Swiss airline Swissair Group said it has canceled all of its 13
scheduled flights to the U.S. on Friday after failing to receive
permission to fly from the U.S. Federal Aviation Administration.

The company said that the only airlines that have received
permission to operate flights within U.S. airspace are U.S.-based
airlines, Canadian airlines, and El Al of Israel.

The cancellation of flights last week was prompted by Tuesday's
terrorist attacks in the U.S.


SWISSAIR GROUP: Government Rules Out State Financial Aid
--------------------------------------------------------

The Swiss government still will not consider providing state
financial aid to Swissair Group AG, Dow Jones Newswires reported
on Friday, citing finance ministry spokesman Hugo Schittenhelm.

He added the government has no intention of raising or lowering
its stake in Swissair, which has debt of CHF15 billion. The
government owns around 3% of the airline.

The Federal Cabinet still believed the company could turn itself
around with its own resources.

Swissair said last month that it would cut 1,250 jobs, or about
1.7% of its worldwide work force, and that it would sell its
ground handling and airport retailing businesses to raise funds.

The Swiss aviation group reported a 2001 first half net loss of
CHF234 million francs (see http://bankrupt.com/misc/swissair1.pdf
for the group's consolidated income statement).


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


BRITISH TELECOM: Appoints New BT Ignite Chief
---------------------------------------------

British Telecom has appointed Andy Green as the new chief
executive of data networking and Internet services provider BT
Ignite, according to the Sunday edition of The Times newspaper.

The appointment follows the resignation of BT Ignite chief
executive Alfred Mockett, who is expected to leave the company in
November to head a US-based company.

Green is currently the head of BT's Internet service provider,
BTopenworld.


BRITISH TELECOM: Faces Pressure to Revamp Property Sale
-------------------------------------------------------

British Telecommunications PLC is being pressured by the
Communication Workers union to restructure a 2.3-billion-pound
deal to sell off its property, the Independent on Sunday
reported.

The union is worried that 650 workers will have no choice as to
whether they remain employed by BT or if they become employees of
the new property company, owned by Land Securities and William
Pears Group.

Earlier this month, the company said it would cut down another
500 million pounds of debt when it demerges its wireless arm in
November.


EQUITABLE LIFE: To Announce Compromise Deal This Week
-----------------------------------------------------

Equitable Life Assurance Society will reveal its long-awaited
compromise deal to stabilize the society's finances towards the
end of this week, the Daily Telegraph reported on Sunday.

The 100-page draft version of the document is expected to offer
financial sweeteners to policyholders of both guaranteed and non-
guaranteed annuities in return for capping Equitable's
liabilities at current levels.

Under the compromise agreement, GAR holders will be asked to
waive their GAR rights and non-GAR holders will be asked to
promise not to sue the company for mis-selling.

Equitable chairman Vanni Treves will now give policyholders time
to consider the draft of the agreement and to make their own
comments.

The final version of the agreement will be ready later this year
or early next year. It will be accompanied by report from
independent actuary Michael


HARNISCHFEGER INDUSTRIES: Posts Third-Quarter Operating Results
---------------------------------------------------------------

Joy Global Inc., a worldwide leader in manufacturing, servicing
and distributing mining equipment, has announced its operating
results for the three- and nine-month periods ended July 31,
2001. The quarter and year-to-date results include those of both
Harnischfeger Industries during its reorganization and Joy Global
post-reorganization.

PRNewswire on September 13 said that total revenues for the
quarter ended July 31, 2001 were $290.6 million, an increase of
10.4% from last year's third quarter revenues of $263.1 million.

For the first nine months of fiscal 2001, total revenues were
$846.8 million compared with revenues of $834.9 million in the
same period of fiscal 2000, an increase of 1.4%.

Adjusted EBITDA, comprised of operating earnings before
restructuring and reorganization charges and credits,
depreciation and amortization, amounted to $32.4 million in the
quarter ended July 31, 2001, an increase of 32.9%, from adjusted
EBITDA of $24.4 million in the third quarter of fiscal 2000.

For the nine-month period, adjusted EBITDA in the current fiscal
year totaled $86.9 million as compared to $77.1 million in the
prior year period, an increase of 12.8%.

Pre-tax gains in excess of $1.2 billion related to the completion
of the company's reorganization were recorded during the most
recent quarter and year-to-date periods.


HUNTINGDON LIFE: Regulators Allow Investors Anonymity
-----------------------------------------------------

City regulators has approved a draft agreement that will secure
anonymity for investors trading shares in U.K. animal research
company Huntingdon Life Sciences Group PLC, Dow Jones Newswires
reports on Sunday.

Apcims, the association of private client investment managers and
stockbrokers, said it hopes to have details of the plan in place
in the next two to three weeks.

In July, the Troubled Company Reporter Europe said that City
watchdog Financial Services Authority has given Huntingdon the
go-ahead to set up a corporate nominee service to allow investors
to protect their identity from animal rights campaigners by
holding their shares in a secret account in the company's name.

Many Huntingdon brokers, including Barclays, TD Waterhouse and
Pershing, have stopped trading or holding the shares after being
targeted by protesters.


KINGFISHER PLC: Investors Demand CEO Resignation
------------------------------------------------

One of the biggest investors in Kingfisher PLC has demanded the
resignation of the retailer's chief executive Geoff Mulcahy, The
Sunday Times reported.

Peter Goldstein and his elder brother Ronald, who own 20 million
shares in the company after selling chemist chain Superdrug to
Kingfisher for 231 million pounds in 1987, have become frustrated
with Mulcahy's management.

According to Goldstein, the ill-conceived demerger was supposed
to enhance shareholder value, but rather led to a drastic fall in
share price. Kingfisher last week reported an interim loss of 355
million pounds, after 526-million-pound of exceptional charges.

The Times added that Mulcahy is faced by calls to cut his 1-
million-pound salary package for running a company that is just
three-quarters its previous size as a result of the demerger.


MARCONI PLC: Cooperates With Unions Over Job Cuts
-------------------------------------------------

Unions and management at beleaguered telecoms firm Marconi have
agreed to work together to avoid compulsory redundancies at the
company's UK plants, the BBC News reported on Friday.

Marconi announced early this month of further 2,000 job losses,
600 of which will be at the firms U.K. plants. The latest job
cuts are part of an operational review aimed to reverse the
company's fortunes.

Earlier, union officials have warned of possible strike action.
The unions have been angered by way Marconi announced the cuts,
and were worried compulsory redundancies could be possible. They
also claim that the company has refused voluntary redundancy
applications from workers in some parts of the company.

Marconi has been hit hard by the worldwide slump in telecoms.
Last week, it was relegated from the FTSE 100 Index of leading
listed UK firms.


MARCONI PLC: To Meet With Creditors This Week
---------------------------------------------

Marconi will meet with its creditor banks this week to detail its
proposed debt reduction measures, the Sunday Business reported.

Marconi has a 4.4-billion-pound debt at the end of August. Only
an unconditional loan agreement backed by 14 banks is sustaining
the business. The syndicate of banks, headed by HSBC and
Barclays, agreed to provide unconditional debt facilities until
March 2003.

The U.K. telecommunications firm has had its debt downgraded to
junk status by credit-rating agency Standard & Poor's.


PSINET INC: Agrees to Sell Metamor Assets to CIBER
--------------------------------------------------

PSINet Inc., a provider of Internet and IT solutions, announced
on September 10 that its wholly-owned subsidiary, PSINet
Consulting Solutions Holdings, Inc. (formerly Metamor Worldwide,
Inc.), has agreed to sell its subsidiaries Metamor Industry
Solutions and Metamor Government Services Inc. to CIBER Inc.

The proposed purchase is subject to a number of conditions,
including obtaining a Bankruptcy Court order authorizing the sale
of the subsidiaries free and clear of all liens, claims and
encumbrances.

PSINet Consulting Solutions Holdings, Inc., the parent company of
the entities being sold in this transaction, on September 10,
also filed for protection under Chapter 11 of the U.S. Bankruptcy
Code.

Neither of the entities being acquired by CIBER in this
transaction nor any other subsidiary of PSINet Consulting
Solutions Holdings, Inc. is included in today's bankruptcy
filing.

Concurrent with its Chapter 11 filing, PSINet Consulting
Solutions Holdings, Inc. filed a motion with the United States
Bankruptcy Court seeking approval of this transaction with CIBER
pursuant to Section 363 of the U.S. Bankruptcy Code.

Lazard acts as financial advisor to PSINet Consulting Solutions
Holdings Inc. on this transaction.

Headquartered in Ashburn, Va., PSINet Inc. offers hosting
solutions, and a full suite of retail and wholesale Internet
services through wholly owned PSINet subsidiaries.


UNIQ PLC: Issues Second Warning
-------------------------------

Uniq has issued its second profit warning on Friday as its St
Ivel yogurt business continued to be below its expectations, the
September 14 edition of Dow Jones Newswires said.

The British food company added that its chief executive Terry
Stannard would step down with immediate effect and that Nigel
Stapleton would assume the role of executive chairman as it
started a search for a new chief executive.

Uniq, formerly known as Unigate, supplies chilled, frozen and
ambient convenience foods to retailers and foodservice outlets in
15 countries including the UK, France, Germany and Spain.

Uniq's shares on Thursday closed at 185 pence. It underperformed
the FTSE All-Share food sector by around 32% since the start of
the year, valuing the business around 211 million pounds.

                                    ***********

       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. Lourdes Reyes, Editors.

Copyright 2001.  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
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is $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 $25 each.  For subscription information, contact
Christopher Beard at 301/951-6400.


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