/raid1/www/Hosts/bankrupt/TCREUR_Public/010919.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

          Wednesday, September 19, 2001, Vol. 2, No. 183


                            Headlines

* B E L G I U M *

LERNOUT & HAUSPIE: Bodson Presents Revised Plan
SOFINAL-COTESA: Textile Group Files for Suspension of Payment

* F R A N C E *

MOULINEX SA: Senator Lambert Accuses El.Fi

* G E R M A N Y *

BANKGESELLSCHAFT BERLIN: NordLB Plans Not Compatible With Flowers
BANKGESELLSCHAFT BERLIN: Shares Tumble to More Than 40%
DEUTSCHE TELEKOM: Launches T-Systems
DEUTSCHE TELEKOM: May Cut Costs to Reduce Debt
DEUTSCHE TELEKOM: Shares Plunge to Lifetime Low
INSON HOLDING: United Internet Subsidiary Is Insolvent
MAN AG: To Cut Jobs at British Subsidiary
REFUGIUM AG: May Loose License

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

LAURUS NV: Shares Jump on Takeover Speculation
PHARMING GROUP: Belgian Court Extends Suspension of Payment

* N O R W A Y *

ENITEL ASA: Will Declare Subsidiary Bankrupt

* P O L A N D *

DAEWOO-FSO: Peugeot, Toyota Not Interested in Daewoo
DAEWOO GROUP: Abandons UK Retail Outlets

* U N I T E D   K I N G D O M *

BALTIMORE TECHNOLOGIES: Chief Sanders Raises Stake
BRITISH TELECOM: BT Wireless Secures 3.5-BB-Pound Loan
CORUS GROUP: Sells Canadian Unit to Hatch
MARCONI PLC: Lord Simpson Fights for 1.2-MM-Pound Pension
MARKS & SPENCER: Wal-Mart May Bid for M&S Shops
MARKS & SPENCER: Will Resume Sale of U.S. Chains
PPL THERAPEUTICS: Close of 30-MM-Pound Rights Issue Delayed
RAILTRACK GROUP: Executives to Escape Paddington Crash Charges


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


LERNOUT & HAUSPIE: Bodson Presents Revised Plan
-----------------------------------------------

Chairman Philippe Bodson of troubled Belgian technology group
Lernout & Hauspie Speech Products NV has last week presented
details of a revised recovery plan to employees, after the Ypres
business tribunal rejected the previous plan, the September 14
edition of L'Echo/FT Information said.

The management believes that it will now require between $20
million and $25 million in outside funding, rather than the $100m
laid out in its previous plan.

Under the terms of the new plan, 173 of L&H's 571 employees will
lose their jobs. Belgium will be the country most affected, with
74 job cuts out of a total workforce of 255.


SOFINAL-COTESA: Textile Group Files for Suspension of Payment
-------------------------------------------------------------

Belgian textile group Sofinal-Cotesa has filed for a six-month
suspension of payment to the Dendermonde and Kortrijk commercial
court last week, the De Standaard/FT Information reported on
Monday.

Sofinal-Cotesa plans to reduce its wage costs by one third. Three
divisions are up for sale. If the recovery plan will be decided,
the banks will undoubtedly consider the advantages of insolvency.

Sofinal has been plagued by its 86.76 million bank debts caused
by the company's aggressive expansion at the end of the 1980s and
the buy-out of family shareholders.


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


MOULINEX SA: Senator Lambert Accuses El.Fi
------------------------------------------

Alain Lambert, French senator for Alencon, according to Le
Figaro/FT Information's Monday report, has accused Italian group
Elettro Finanziaria SpA (El.Fi) for acquiring Moulinex only to
simplify their stock market entry.

Lambert also blames the French appliance maker's chairman Patrick
Puy for forming a social plan without the support of the unions
and without meeting local politicians.

Moulinex filed for bankruptcy early this month after its main
shareholder, El.Fi, withdrew its backing for a 350-million-euro
rescue package. It has been making losses since 1999, plagued by
industry overcapacity, fierce competition from overseas
suppliers, and an 818-million-euro debt.

El.Fi bought a 74.3% stake in Moulinex last year and merged with
its own domestic appliance unit Brandt.


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


BANKGESELLSCHAFT BERLIN: NordLB Plans Not Compatible With Flowers
-----------------------------------------------------------------

Norddeutsche Landesbank's plan to restructure the ailing
Bankgesellschaft Berlin is not compatible with that of the US
investor Christopher J. Flowers, the September 14 edition of
Suddeutsche Zeitung/FT Information said.

NordLB said that Flowers' offer for the Berlin bank was more of a
financial investment, while it was planning a strategic
investment.

NordLB, the largest Bankgesellschaft shareholder after the state
of Berlin, will take part in a capital increase for
Bankgesellschaft.

Meanwhile, it has been reported that NordLB could use its veto to
prevent Berlin from lowering its stake in Bankgesellschaft to
less than 50%.

If the report is confirmed, it could mean that the state will not
be able to sell off its majority without the approval of NordLB
until 2004, when the syndicate agreement between the state and
NordLB expires.

Neither the state of Berlin nor NordLB wanted to comment on the
matter.


BANKGESELLSCHAFT BERLIN: Shares Tumble to More Than 40%
-------------------------------------------------------

Shares of Bankgesellschaft Berlin were the fastest falling on the
German stock exchange last week, according to Die Welt/FT
Information's Monday edition.

Analysts say that the fall of more than 40% has nothing to do
either with the recent tragic events in the US or the ongoing
negotiations with US investor Christopher Flowers, rather it was
due to the opening of the subscription period for a capital
increase that has resulted in a share price of 2.56 euros.

Analysts are less than enthusiastic about the offer.

The loss-making Bankgesellschaft is subject to a number of legal
and regulatory probes linked to losses in the Berlin real estate
market. It recently posted a net loss of 1.6 billion euros for
2000 and is in dire need of 2 billion euros in fresh capital.
Refer to http://bankrupt.com/misc/bgb.pdffor the bank's  
financial details.


DEUTSCHE TELEKOM: Launches T-Systems
------------------------------------

Deutsche Telekom has launched T-Systems, the brand name now
covering its business services activities, Les Echos/FT
Information in its September 14 report said.

T-Systems in France, made up of the professional communications
company Siris and information providers Spring and IS group
Soleri, employs 2,300 employees for a consolidated turnover of
380 million euros in 2000.

Soleri, Spring and Siris are not profitable at present but are
expected to reach profitability in 2002, the report added.


DEUTSCHE TELEKOM: May Cut Costs to Reduce Debt
----------------------------------------------

The German telecommunications group Deutsche Telekom, according
to the Financial Times on Sunday, may cut more than 1 billion
euros next year in order to lower its debt, which totaled 65.5
billion at the end of June.

The company had previously been planning to invest 11.5 billion
euros, however, group chairman Ron Sommer said that he was
confident Deutsche Telekom would be able to reduce its level of
debt because there was flexibility in its investment budget.

Falling share prices could affect its ability to meet the debt
targets, by threatening the proposed flotation of its mobile arm
T-Mobile. The flotation is expected to raise about 10 billion
euros.

Early this month, DT concluded a definitive agreement with U.S.-
based Liberty Media Corp. to sell its cable-television operations
in six German regions for about 5.5 billion euros. The company
has also completed the sale of its cable network to majority
shareholder Callahan Associates.


DEUTSCHE TELEKOM: Shares Plunge to Lifetime Low
------------------------------------------------

Share price of Deutsche Telekom slipped as low as 14.16 euros in
early trading last week on worries about the impending sale of
the company's large holdings, which it issued to fund its
VoiceStream acquisition, the Sunday edition of the Financial
Times reported.

The company's shares have also been hit by concerns about
overcapacity, falling profits and high levels of debt in the
telecommunications sector.


INSON HOLDING: United Internet Subsidiary Is Insolvent
------------------------------------------------------

German Internet company United Internet AG has withdrawn from
online insurance business due to the insolvency of Inson Holding,
the company in which it holds a 49% stake, according to the
Monday edition of Financial Times Deutschland.

United, which claims it spent more than DM20 million on Inson,
was no longer prepared to fund the insolvent company.

It is believed that administrators are negotiating with other
interested parties, including insurance companies and retail
chains, over Inson's future.


MAN AG: To Cut Jobs at British Subsidiary
-----------------------------------------

German mechanical engineering and utility vehicles group MAN AG
will cut 370 jobs at its ailing British lorry subsidiary ERF
Holdings PLC, the Sunday edition of Frankfurter Allgemeine
Zeitung/FT Information said.

ERF's plant in Cheshire will only manufacture lorries for the
British market during the next six months and will be turned into
MAN's British distribution and marketing subsidiary in the long
run.

MAN, which has detected a severe case of falsified balance sheets
at its UK truck subsidiary in mid-August this year, turned out to
have registered losses for a long time.

MAN has also suspended ERF chief executive John Bryant and chief
financial officer Klaus Wagner following the discovery of
accounting irregularities.


REFUGIUM AG: May Loose License
------------------------------

German retirement home operator Refugium Holding AG could lose
its license to run three homes after staff shortages became
apparent as the result of the introduction of a cost saving
program, according to the Monday edition of Suddeutsche Zeitung &
World Reporter.

The senior citizens must now wait for the findings of the
official receivers, who will determine whether an acceptable
middle-way can be found between the needs of the residents on the
one hand and the needs of capitalism on the other.

The district court of Bonn in Germany opened an insolvency
procedure for Refugium in early August.

Meanwhile, Pako Immobilien AG, which has filed the insolvency
request against the retirement home operator in June, has
announced that it is not willing to support efforts to keep the
company together and in operation.

Pako owns 27 of the 57 homes run by Refugium, and it is looking
to buy the latter out of their agreements, and integrate them
into another company.


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


LAURUS NV: Shares Jump on Takeover Speculation
----------------------------------------------

Shares of Dutch supermarkets group Laurus jumped as much as 15.8%
to 3.52 euros on Friday. on speculation that it might be an
attractive takeover target, Reuters reported.

Fund manager Gert Jan Geels at broker Eureffect said that
investors thought French retailers Casino or Carrefour may be
interested in buying Laurus.

A plan by Laurus to revamp its Dutch supermarket formats ran into
problems and was halted, two profit warnings were issued early
this year and three key board members have resigned.

The company recently posted a worse-than-expected first-half net
loss of 44 million euros and debt of 1.3 billion guilders.


PHARMING GROUP: Belgian Court Extends Suspension of Payment
-----------------------------------------------------------

The commercial court of Turnhout City in Belgium has
extended the suspension of payment for the Belgian division
of Dutch pharmaceuticals company Pharming, according to the
Friday edition of Het Financieele Dagblad/FT Information.

The extension gives the division more time to continue
talks with a large pharmaceutical company.

Pharming Group is in talks with several parties, including
international biopharmaceutical organizations, interested in
buying the cash-strapped Dutch biotechnology company. It has also
started talks with financial institutions to refinance the
company or parts of the company after restructuring.

According to Pharming, the talks could lead to the takeover of
the new factory in the Belgian town of Geel and the takeover of
the Belgian employees.


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


ENITEL ASA: Will Declare Subsidiary Bankrupt
--------------------------------------------

Enitel ASA, one of Norway's major telephone companies, will
declare its main subsidiary Enitel AS bankrupt after it failed to
attract new investment despite the presentation of a new business
plan, the Associated Press reported on Monday.

Enitel, which has debts of 3.9 billion kroner, is looking for new
owners who might continue operations.

Earlier, Enitel ASA said that as many as 149 more staff will be
made redundant in the company. It also 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.


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


DAEWOO-FSO: Peugeot, Toyota Not Interested in Daewoo
----------------------------------------------------

PSA Peugeot-Citroen and Toyota, according to Warsaw
Business Journal's Monday edition, will not take over the
troubled Daewoo-FSO car plant in Warsaw if it goes ahead
with plans for a joint car-manufacturing facility in
Poland.

"It will rather be a greenfield investment," PSA spokesman Marc
Ferrant. "As far as I know, we're not looking for an existing
plant."

The news has disappointed Daewoo-FSO's management and
workers, who had hoped the plant would attract the 1.5-
billion-euro project.

Daewoo-FSO, Poland's second-largest car plant, has been
struggling to separate itself from the Korea-based Daewoo Motor
since it declared bankruptcy in late 1999.


DAEWOO GROUP: Abandons UK Retail Outlets
----------------------------------------

Daewoo will abandon all its UK retail outlets and plans to
recruit about 80 independent dealers to act as its franchisees,
the Financial Times reported on Friday.

The move comes as the financially-troubled South Korean carmaker
has been hit by plummeting sales. Consumer confidence in the
brand has been hit by the lengthy negotiations to rescue the
parent company from bankruptcy.

Daewoo has about 40 wholly-owned supermarkets and slightly
smaller outlets. Three of which, and potentially more, will be
taken over by independent motor groups. All its employees at the
three centers will transfer to the independent groups.

Daewoo became by far the fastest-growing car company in the UK,
with total sales reaching 170,000 units.


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


BALTIMORE TECHNOLOGIES: Chief Sanders Raises Stake
--------------------------------------------------

Baltimore Technologies' chief executive Paul Sanders has raised
his stake in the group last week on possibilities that one of the
ailing group's divisions might find a buyer, the Sunday edition
of This Is London said.

Steve Purdham, chief executive of Internet software company
SurfControl, said that his company might bid for Content
Technologies, Baltimore's content management arm that it bought
for 692 million pounds.

Sanders then acquired 113,432 shares in Baltimore at 17 1/2p a
share.

Chairman Peter Morgan also bought 200,000 shares in August for
23p each on the day the group announced job cuts to save 72
million pounds annually and losses of 475 million pounds.


BRITISH TELECOM: BT Wireless Secures 3.5-BB-Pound Loan
------------------------------------------------------

BT Wireless, according to The Observer's Sunday report, will
announce this week that it has secured a massive 3.5-billion-
pound loan facility from six banks to help it fund the
development of its third generation (3G) mobile phone network.

Barclays, Citigroup, Deutsche, HSBC, JP Morgan and the Royal Bank
of Scotland will provide the credit line.

BT Wireless, currently being renamed O2, will be demerged in
November from parent company BT. It is expected the group will be
valued at around 15 billion pounds.


CORUS GROUP: Sells Canadian Unit to Hatch
-----------------------------------------

Corus Group plc on Friday said that its Canadian subsidiary Corus
Consulting Inc, based in Ontario, has been sold to engineering
consultancy firm Hatch Associates for an undisclosed sum.

The sale follows a decision by Corus that it no longer wishes to
be involved in acting as an operations management contractor,
which has been the main focus of the Canadian office in recent
years.

As part of the deal, Corus Consulting's 19 employees will
transfer to Hatch.

Corus Consulting, a wholly-owned subsidiary of the Corus Group,
will continue to operate out of its main offices in the UK and
the Netherlands.

Anglo-Dutch steel manufacturer Corus recently posted a pre-tax
loss of 230 million pounds in the first half of this year (see
http://bankrupt.com/misc/corus.pdffor the company's interim  
report).


MARCONI PLC: Lord Simpson Fights for 1.2-MM-Pound Pension
---------------------------------------------------------

Lord George Simpson, the ousted Marconi chief executive, is
battling to secure a 1.2-million-pound pension payment from the
stricken telecoms company, the Sunday edition of The Observer
said. He is also trying to safeguard part of his 1-million-pound
initial payoff.

Lord Simpson is entitled to about 1.2 million pounds paid into a
funded unapproved retirement benefit scheme since 1997. However,
Marconi is believed to be reluctant to give it to him.

The Troubled Company Reporter Europe said last week that Simpson
is believed to have held talks with acting chairman Derek Bonham,
who has said he is against ousted Marconi directors receiving big
payoffs when they leave.

The payoffs issued to ousted Marconi directors have angered many.
The company's big shareholders, the Association of British
Insurers, and the government have pressured Simpson to give up
his payoff.

Sir Roger Hurn, who was also ousted as chairman together with
Lord Simpson, has already indicated that he will waive the
300,000 pounds to which he is entitled.


MARKS & SPENCER: Wal-Mart May Bid for M&S Shops
-----------------------------------------------

WalMart is reportedly interested in the stores of troubled
retailer Marks & Spencer, the Sunday edition of The Observer
said. Galeries Lafayette has also been linked with the sale, but
there has been no confirmation.

M&S, which owns the freehold of 10 of the 18 sites, wants to sell
the stores to quash its legal problems concerning the fate of
1,600 staff.

The retail group further pledged to complete the sale by the end
of this year and is understood to be on track.


MARKS & SPENCER: Will Resume Sale of U.S. Chains
------------------------------------------------

The sale of Marks & Spencer's U.S. subsidiaries Brooks Brothers
and Kings Super Markets will be delayed by no more than a few
weeks, following the terrorist attacks in New York and Washington
last week, according to The Times' report yesterday.

An M&S spokesman denied speculation that potential buyers for the
two chains had backed off. Talks with the shortlisted buyers, due
to start last week, will take place in the next few days.

One of Brooks Brothers' 221 stores was damaged due to the attack.
No Kings outlets were hit.

M&S has put its U.S. subsidiaries up for sale to allow it to
focus on its core UK stores that remain stubbornly under-
performing. The retailer also planned to close its stores in
continental Europe as part of a plan to return 2 billion pounds
to shareholders by March next year. The move will cost almost
3,400 jobs in seven countries and has led to legal action against
M&S executives in France.


PPL THERAPEUTICS: Close of 30-MM-Pound Rights Issue Delayed
-----------------------------------------------------------

Scottish biotechnology company PPL Therapeutics said that
Tuesday's terrorist attacks in the United States had delayed the
closing of its 30-million-pound rights issue priced at 50p a
share, according to the Friday edition of the Financial Times.

The company launched the scaled-down rights issue this month to
rebuild its falling cash resources. A previous attempt to raise
40 million pounds failed in March because of a lack of support
from investor.

With just 4.1 million pounds left in the bank at the end of July,
PPL will run out of cash by the end of the year without the new
funds.

A successful rights issue would also trigger a 15-million-pound
loan to pay for production facilities for purifying AAT, a
protein drug for treating emphysema produced in the milk of
genetically engineered sheep.


RAILTRACK GROUP: Executives to Escape Paddington Crash Charges
--------------------------------------------------------------

The directors and managers of Railtrack are almost certain to
escape corporate manslaughter charges for the Paddington
disaster, according to the Sunday edition of The Observer.

The news comes as the rail industry braces itself for Lord
Cullen's report on the Paddington crash that killed 31 people and
injured 400 nearly two years ago.

The report prompted the Crown Prosecution Service to assess
whether a corporate manslaughter charge was possible. Last year,
the CPS said there was insufficient evidence. Those representing
Paddington crash victims now fear the CPS will once again fail to
press charges.

Solicitor Louise Christian, who represents the Paddington and
Hatfield victims, said she would seek a judicial review if the
CPS refused to continue its investigation.

                                 ***********

   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
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 $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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