/raid1/www/Hosts/bankrupt/TCREUR_Public/011028.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, September 28, 2001, Vol. 2, No. 190


                            Headlines

* B E L G I U M *

LERNOUT & HAUSPIE: Introduces New RealSpeak Version
SABENA SA: Union Approves Sabena Restructuring

* G E R M A N Y *

DEUTSCHE TELEKOM: Inks UMTS Deal With BT
IG FARBEN: Blocks Motion to Dissolve Company
INFOMATEC AG: Former Bosses to Appeal Court Ruling
MAN AG: To Set Up Swedish Operations
MET@BOX AG: Will Decide Its Future on Oct. 30
POPNET INTERNET: Files for Insolvency

* H U N G A R Y *

MALEV AIRLINES: Sept. 11 Attacks Shock Hungarian Airline

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

KPN NV: S&P Cuts Ratings to BBB-
LAURUS NV: Receives Bids for Spar and Basismarkt
LAURUS NV: Shares Rise on Reorganization Plan
LAURUS NV: Will Cut Dutch Stores Format
LYCOS EUROPE: In Discussions to Dispose German Access Business
LYCOS EUROPE: Posts 202MM Euros Loss

* N O R W A Y *

KVAERNER ASA: Receives Lifeline From Lenders
KVAERNER ASA: Under Pressure to Cede Control of Aker Maritime

* S P A I N *

JAZZTEL PLC: Board Member Collatos Quits

* S W E D E N *

ADCORE AB: Shares Suspended

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

SWISSAIR GROUP: B2 Rating on Review for Possible Downgrade
SWISSAIR GROUP: Debt Soars to CHF16.5BB
SWISSAIR GROUP: Pilots Oppose Talks on Salary Cuts

* U N I T E D   K I N G D O M *

BRITISH TELECOM: BTLookSmart Names New CEO
BRITISH TELECOM: Italian Group in Talks to Buy Arrakis
EQUITABLE LIFE: Financial Watchdog Stops Complaints
MARCONI PLC: Sells Lagardere Stake to Cut Debt


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


LERNOUT & HAUSPIE: Introduces New RealSpeak Version
---------------------------------------------------

Lernout & Hauspie Speech Products N.V., a world leader in speech
and language technology, products and services, on Wednesday said
that its Speech and Language Technologies Division (SLT) has
launched the latest version of its award-winning L&H RealSpeak
product line.

The L&H RealSpeak reads aloud any text with a natural, human-
sounding, synthetic voice, and represents the highest quality TTS
technology available today in terms of voice quality, scalability
and intelligibility.

In addition, the L&H RealSpeak family has been expanded to
include a new male and female voice, called David and Deborah,
respectively, for American English.

The L&H RealSpeak product line has also been enhanced to work
more efficiently with large-scale networked systems, as well as
voice and mobile portals.

More than 300 customers from numerous industries, such as
banking, telecommunications, voice portals and Web content
providers are currently using the product. The RealSpeak is also
suited for e-mail, voice portals, intelligent and personal
assistants, talking Web pages, unified messaging, mobile
Internet, and customer relationship management (CRM)
applications.


SABENA SA: Union Approves Sabena Restructuring
----------------------------------------------

After weeks of negotiations, Sabena airlines has persuaded unions
to accept its survival plan, Reuters reported on Wednesday.

Belgium's struggling national airline also got the unions to
agree to hold an employee referendum on the business plan, aimed
at returning it to profitability by 2005.

The airline said the referendum would be held before October 3,
when its shareholders, the Belgian state and troubled Swiss
aviation group Swissair, will meet to release the first part of a
planned 430-million-euro capital injection into the airline.

Sabena, which has more than $2.28 billion in debt, plans to sell
its assets, cancel several European and intercontinental routes,
reduce its fleet, and cut about 1,400 jobs.


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


DEUTSCHE TELEKOM: Inks UMTS Deal With BT
----------------------------------------

Following a benchmark agreement in June, Deutsche Telekom's T-
Mobile and British Telecom's Viag Interkom have finalized their
alliance on UMTS network sharing, Die Welt/FT Information
reported on Monday.

Both parties hope the deal will save them 30% on the costs of
creating networks for third-generation (3G) mobile phone
services. Without the savings, the investment would have reached
7 to 9 billion euros.

DT, which had a debt of 65.5 billion at the end of June,
concluded early this month 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.


IG FARBEN: Blocks Motion to Dissolve Company
--------------------------------------------

IG Farben, the German company that made the Zyklon-B gas used in  
the Nazi death camps, has blocked motions seeking to dissolve the
firm and give the proceeds to World War II slave laborers, the
Jerusalem Post reported on Sunday.

Shareholders at its annual meeting voted down a motion to break
up IG Farben by December 31.

The supervisory board refused to admit a motion to distribute
proceeds from the sale of assets estimated to be worth $10
million, arguing that only the holders of 100% of the company's
stock could make such a decision.  

IG Farben was split up after World War II and went into
liquidation in 1952. It has been heavily criticized for not
paying any compensation to former Nazi slave laborers.

About 100 protesters, including some elderly Nazi-era slave
laborers, gathered outside the IG Farben meeting place in a
Frankfurt suburb.


INFOMATEC AG: Former Bosses to Appeal Court Ruling
--------------------------------------------------

Two former board members of the insolvent software firm Infomatec
Integrated Information Systems AG will appeal a German court
ruling that ordered them to cover the stock market losses
incurred by a company shareholder, the Tuesday edition of the
Agence France-Presse said, citing Infomatec lawyer Panos Pananis.

The Augsburg court on Monday ordered Gerhard Harlos and Alexander
Haefele to pay about 100,000 marks in damages to a shareholder
who had incurred heavy losses after the company issued a
misleading statement.

The case stems from an "ad-hoc announcement" two years ago, which
claimed that the Infomatec had secured a 55-million-marks order.
The order turned out to be worth only 9 million marks, however.

The claimant's lawyers, Rotter Rechtsanwaelte, said the ruling
was a milestone in German stock law. No company has ever been
punished with more than a fine for misleading announcements, and
shareholders have never been awarded damages for losses based on
such statements.


MAN AG: To Set Up Swedish Operations
------------------------------------

German mechanical engineering and utility vehicles group MAN AG
has decided to establish operations in Sweden, the Dagens
Industri/FT Information reported on Wednesday.

Managing director Axel Fischer, of MAN's Swedish truck and bus
division, said that the company could take 5% of the Swedish
truck market.

The company will battle with rival Scania and Volvo by offering
free service and significant discounts on equipment.

Earlier, MAN suspended chief executive John Bryant and chief
financial officer Klaus Wagner of its ailing British lorry
subsidiary, ERF Holdings PLC, following the discovery of
accounting irregularities.

MAN has detected a severe case of falsified balance sheets at its
UK truck subsidiary in mid-August this year.


MET@BOX AG: Will Decide Its Future on Oct. 30
---------------------------------------------

Struggling German set-top box manufacturer Metabox, which filed
to begin insolvency proceedings on May 22, will decide its future
at its AGM on October 30, the Tuesday edition of B6rsen Zeitung
said.

Several proposals will be made in order to save the company,
including the creation of approved capital of up to 7.69 million
euros, the issuance of preference shares, and an increase in
basic capital of 1 million euros.

At least 15 million marks will be needed to implement the
provisional restructuring plan.

Early this month, the Troubled Company Reporter Europe reported
that Metabox's staff members, including chairman Stefan Domeyer,
were being investigated for providing the stock market with
incorrect information.


POPNET INTERNET: Files for Insolvency
-------------------------------------

Hamburg-based PopNet Internet AG, one of Europe's leading service
providers in eBusiness enabling, has opened insolvency
proceedings, AFX News reported on Wednesday.

The move comes after the management board re-examined the
economic situation of the company, which has a looming decline in
turnover and increasing liquidity requirements.

PopNet has posted an EBITDA loss of approximately 3.942 billion
euros, with an EBIT loss of approximately 6.750 billion euros for
the first half of 2001.

For more information, contact Kathrin Heider, Head of Investor
Relations, at telephone +49-(0)40-27827-149, fax +49-(0)40-27827-
228 or email at k.heider@popnet.de


=============
H U N G A R Y
=============


MALEV AIRLINES: Sept. 11 Attacks Shock Hungarian Airline
--------------------------------------------------------

The September 11 terrorist strike in the United States came as an
additional and unexpected blow for state-owned Malev Hungarian
Airlines Rt, which has been looking for a global airline alliance
partner to convert itself into a profitable business, the
Budapest Business Journal reported on Monday.

According to Ferenc Turi, managing director of management
consulting firm Roland Berger and Partners, the chances now are
very slim that the loss-generating Hungarian airline will find a
partner this year.

Malev has been searching for a global alliance partner since its
owner the State Privatization and Holding Rt (APV) failed to sell
a 50% stake in the company to a strategic investor through a
tender in January.

APV President-CEO Csaba Farago said that alliance talks are
currently under way with a group led by KLM Royal Dutch Airlines
NV and Northwest.

Malev, which registered an after-tax loss of Ft9.35 billion on
net sales revenue of Ft108 billion last year, is struggling to
fulfill its restructuring plan that includes job cuts of 600 in
2001 and 400 in 2002.


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


KPN NV: S&P Cuts Ratings to BBB-
--------------------------------

Standard & Poor's lowered the ratings of Netherlands-based
telecommunications firm KPN NV on September 21 from BBB+/A-2 to
BBB-/A-3.  The downgrade includes the firm's corporate credit
rating.

The downgrade reflects the failure of KPN to adequately execute
its de-leveraging strategy over the past 12 months.

Execution risk on the company's de-leveraging strategy continues
to be high, primarily due to the weakness of KPN's share price.
The company's market capitalization has declined to about 3.5
billion euros.

KPN's leverage remains extremely high. On June 30, the company's
net debt was 22.8 billion euros, while EBITDA for the first half
of 2001 was 1.73 billion euros.


LAURUS NV: Receives Bids for Spar and Basismarkt
------------------------------------------------

Laurus NV, the Netherlands' second biggest food retailer behind
Ahold, has received bids for some of its stores that are up for
sale, Dow Jones Newswires reported on Wednesday.

Dutch chain Sligro has bid 135 million Netherlands guilder for
the Spar chain, while German chain Aldi bid 50 million
Netherlands guilder for Basismarkt.

Laurus recently disclosed it would cut the number of its
supermarket formats to improve its financial position.


LAURUS NV: Shares Rise on Reorganization Plan
---------------------------------------------

Shares in food retailer Laurus rose as much as 7.8% to 3.87 euros
on Tuesday, after it scaled back an ambitious 940 million euro
reorganization plan, Reuters reported.

Analysts, who have said that Laurus' restructuring plan was over-
ambitious because it was doing too much at the same time,
welcomed the adjustments.

The food retailer also said it would stop the restructuring of
its distribution operations until its problems with logistics had
been sorted out.


LAURUS NV: Will Cut Dutch Stores Format
---------------------------------------

In its aim to improve results and financial position, Laurus NV
will cut the number of its supermarket formats to three instead
of one, Reuters reported on Tuesday.

Laurus will now focus on Konmar, Super De Boer and Edah, building
efficiency and stability within the organization.

No financial details of the adjustment were disclosed.

Laurus recently posted a debt of 1.3 billion guilders and has
issued two profit warnings early this year. It also has
disappointing turnover growth and the resignation of three key
board members.


LYCOS EUROPE: In Discussions to Dispose German Access Business
--------------------------------------------------------------

Lycos Europe NV is in talks to sell its German Internet access
division, the Wednesday edition of Dow Jones Newswires said,
citing Lycos Europe's chief financial officer Jens Intat.

While he would not specify names, Intat said Lycos Europe was in
discussions with a number of European media, telecommunications,
and Internet service provider companies.

The Dutch online media company earlier said it would cut 300 jobs
in a restructuring aimed at improving profitability.


LYCOS EUROPE: Posts 202MM Euros Loss
------------------------------------

Internet service provider Lycos Europe posted a full-year loss
before interest, taxes, depreciation and amortization (EBITDA) of
202.2 million euros, according to Reuters' report on Wednesday.

It said sales in the year ending June 30 were 138.9 million
euros, up from 40.2 million euros a year earlier, with group
sales in the fourth quarter alone at 40.2 million euros.

Early this year, Lycos Europe posted a 160-million-euro loss due
to the first-time consolidation and depreciation of its newly
acquired Spray Network, in addition to extensive European
marketing expenses.


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


KVAERNER ASA: Receives Lifeline From Lenders
--------------------------------------------

Kvaerner, the troubled Anglo-Norwegian engineering and
construction group, said on Wednesday that banks have agreed to
extend an 800-million-kroner short-term loan of the group to the
end of the year.

Based on the agreement, efforts will now be intensified to
establish an underwriting syndicate for the rights issue. So far,
DnB, Folketrygdfondet, Siem Industries, and others have agreed to
participate in the syndicate, subject to a satisfactory
refinancing of the group's US$450 million loan facility and a
full underwriting of the NOK1 billion rights issue. The total
amount underwritten so far is NOK500 million.

Kvaerner expects to complete the rights offering by the end of
November.


KVAERNER ASA: Under Pressure to Cede Control of Aker Maritime
-------------------------------------------------------------

The board of struggling Anglo-Norwegian engineering and
construction group Kvaerner on Tuesday came under pressure to
cede control of its largest shareholder and Norwegian oil service
rival, Aker Maritime, to save it from bankruptcy.

Aker Maritime's majority owner Kjell Inge Rokke is understood to
have demanded a majority stake in Kvaerner as a precondition for
his eventual participation in an emergency rights issue. He has
been battling to merge his shipbuilding, oil and gas businesses
with those of Kvaerner.

The company is under intense pressure to raise NKr1.5 billion to
NKr2 billion, after banks demanded the company raise capital
before they would agree to further long-term financing.

Kvaerner has continued its crisis talks with shareholders and
banks to raise NKr1 billion. Its gross debt on Tuesday has
reached NKr9.5 billion after repayment of a loan to Den norske
Bank related to the Stena Don rig.


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


JAZZTEL PLC: Board Member Collatos Quits
----------------------------------------

Jazztel PLC's board member William Peter Collatos has resigned,
according to the Wednesday edition of Dow Jones Newswires. No
reason was given for Collatos' resignation.

The Spanish telecommunications company posted a second quarter
net loss of 68.08 million euros in July, compared with a loss of
62.38 million euros in the first quarter of this year and a loss
of 50.97 million euros in the second quarter of 2000.

Standard & Poor's in June lowered its ratings on the company's
senior unsecured notes to triple-'C'.


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


ADCORE AB: Shares Suspended
---------------------------

Shares in beleaguered Swedish Internet and information technology
consultant Adcore AB were suspended Wednesday on the Stockholm
stock exchange, according to Dow Jones Newswires' report.

Adcore's shares have collapsed since the downturn in technology
issues started last year, but had risen 82.1% at SEK0.51 when
they were halted on Wednesday.

A year ago, the shares were worth over SEK60, hitting a high of
around SEK150 in early 2000.

Adcore recorded losses of 1.9 billion Swedish kronor (see
http://bankrupt.com/misc/adcore1.pdffor the company's financial  
report) in the first half of 2001.


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


SWISSAIR GROUP: B2 Rating on Review for Possible Downgrade
----------------------------------------------------------

Moody's Investors Service said Wednesday that it would continue
to review for possible downgrade the B2 long-term issuer rating
of Zurich-based aviation group Swissair Group.

Members of the Swiss government, in a joint effort with
Swissair's management, the banks, and the Swiss business
community have set up a working group to develop a plan for the
restructuring and recapitalization of the company to keep the
Swiss airline in operation.

Under current circumstances, Moody's sees a high potential for
demands of a debt waiver or equity for debt swap, which would
constitute default with a low expected recovery.

The review will continue to monitor the progress of Swissair's
asset disposal program, the impact of the recent U.S. terrorist
attacks, the economic downturn on the company's core operations,
as well as management's recently announced strategy to downsize
the fleet and reduce costs.


SWISSAIR GROUP: Debt Soars to CHF16.5BB
---------------------------------------

Debts of Swissair Group have increased to around CHF16.5 billion
from CHF15 billion over the past few weeks, Dow Jones Newswires
reported on Wednesday, citing Chief Executive Mario Corti.

Debts on the balance sheet were in excess of CHF12 billion, while
off-balance sheet debts hovered around CHF4.5 billion.

A Swissair Group spokesman said the company was still solvent,
even though the heavily indebted company urgently needs fresh
capital.

The Swiss airline is currently trying to find investors to avoid
insolvency. It said earlier this week that it would present its
new business plan before the November 9 extraordinary general
meeting.

Swissair was already in trouble before the September 11 terrorist
attacks in the United States. It recorded a net loss of CHF234
million francs (see http://bankrupt.com/misc/swissair1.pdffor  
the group's consolidated income statement) in the first half of
2001. Last month, the company announced plans to lay off 1,250
staff.


SWISSAIR GROUP: Pilots Oppose Talks on Salary Cuts
--------------------------------------------------

Swissair Group AG's pilots are unwilling to discuss salary
reductions with the Swissair management in light of the ongoing
restructuring of the struggling airline, Dow Jones Newswires
reported on Wednesday.

Pilots' union head Markus Joehl said that management would need
to win the approval of all 1,250 members if they want to change
the current working contract.

The union also fears that the planned merger of Swissair and its
Crossair unit could lead to 300 pilots losing their jobs.

The Swiss aviation group badly needs an infusion of equity as its
debt has now reached SFr15 billion ($9.5 billion).


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


BRITISH TELECOM: BTLookSmart Names New CEO
------------------------------------------

BTLookSmart, the international joint venture between Web
directories leader LookSmart and British Telecommunications, has
appointed Martin Turner as its chief executive officer, M2
Presswire reported on Tuesday.

Turner will focus on leading BTLookSmart's growing directory,
distribution and commercial search listings business in Europe
and Asia.

Turner began his Internet career in the 1980's and by 1997 was
managing director of CompuServe UK and northern Europe. He left
CompuServe in April 1999 and co-founded Peoplesound.com where, as
COO, he helped grow the business to become Europe's leading
digital music download site.


BRITISH TELECOM: Italian Group in Talks to Buy Arrakis
------------------------------------------------------

The Italian telecoms and Internet group Tiscali, according to the
Tuesday edition of Il Sole 24 Ore/FT Information, is in talks
with British Telecom to acquire its Spanish controlled company
Arrakis.

Tiscali acquired in August Spanish Internet service provider
Inicia for 18 million euros.

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


EQUITABLE LIFE: Financial Watchdog Stops Complaints
---------------------------------------------------

The Financial Services Authority has stopped accepting new
complaints relating to Equitable Life, the Daily Telegraph
reported yesterday.

The UK watchdog has already received 400 mis-selling complaints
from policyholders but has put them on hold until the outcome of
the proposed compromise agreement.

Standard & Poor's recently lowered Equitable's ratings to CCC on
Tuesday, following publication of the insurer's consultation
proposal for a restructuring of its liabilities between
guaranteed annuity rate (GAR) and non-GAR policyholders.


MARCONI PLC: Sells Lagardere Stake to Cut Debt
----------------------------------------------

Troubled telecoms group Marconi has sold its 1.49% stake in
French media firm Lagardere to city broker Schroder Salomon Smith
Barney for 43.2 million pounds, the Daily Telegraph reported
yesterday.

A company spokesman said the move was in line with its
restructuring plans.

Marconi, recently demoted to the FTSE 250, wants to cut at least
1.2 billion pounds from its 4.4-billion-pound debt by next March.
It is also in the process of selling its Medical Systems
business, which is expected to raise 780 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 Maria 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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