/raid1/www/Hosts/bankrupt/TCREUR_Public/011219.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, December 19, 2001, Vol. 2, No. 247


                            Headlines

* B E L G I U M *

AGFA-GEVAERT: Inks Social Pact With Unions

* C Z E C H   R E P U B L I C *

VLARSKE STROJIRNY: Investors Eye Bankrupt Engineering Firm

* F R A N C E *

AIR LIB: Sees Eur92MM Deficit in 2001
LVMH: Sells Gucci Shares to Credit Lyonnais
VALEO SA: Moody's Cuts Ratings to A3

* G E R M A N Y *

BANKGESELLSCHAFT BERLIN: Agrees Cost Cuts With Unions
BIODATA INFORMATION: Reveals Losses in Third Quarter
KIRCHGRUPPE: To Sell Telecinco Stake
SPAR HANDELS: Sells Kodi Diskontladen to Improve Liquidity

* H U N G A R Y *

MALEV AIRLINES: Sells Hotel Stake to HVB
MOL RT: Puts Ft15BB Bond to Auction

* L U X E M B O U R G *

CARRIER1 INTERNATIONAL: Company Profile

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

KPN NV: Will Launch Mobile Internet Service Arm

* N O R W A Y *

BRAATHENS ASA: Shareholders Accept SAS Offer

* P O L A N D *

ELEKTRIM SA: Fails to Make Bond Payment, Puts Company in Default
LOT AIRLINES: IPO Put on Hold
NETIA HOLDINGS: Subsidiary Refuses to Pay $17.6MM

* S W E D E N *

ADCORE AB: To Cancel Compulsory Redemption
SCANDINAVIA ONLINE: Accepts Eniro Offer to Buy SOL Shares

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

SULZER MEDICA: Plans Share Buy-Back
SWISSAIR GROUP: Crossair Confirms Fleet Takeover

* U N I T E D   K I N G D O M *

CORUS GROUP: Capital Interested in Corus Shares
EXCITE@HOME: Will Close U.K. Venture After Failing to Find Buyer
MARCONI PLC: Sells Optical Business to Bookham Technology
NTL INCORPORATED: Bondholders Warn on Rescue Terms
NTL INCORPORATED: Struggles to Scale Debt
PPL THERAPEUTICS: Names Geoff Cook as New Chief


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


AGFA-GEVAERT: Inks Social Pact With Unions
------------------------------------------

Agfa-Gevaert NV, the Belgian photo-imaging company, has signed an
agreement with trade unions regarding the social plan
accompanying the company's restructuring plan, notably on early
retirement schemes.

According to the AFX News, the measures aim to save 750 full-time
staff, including 350 blue-collar workers, 275 administrative
staff and 125 executives, in the group's headquarters in Mortsel.

The pact fits with the Horizon restructuring plan targeting
annual savings of some 550 million euros, which the company
expects to achieve from 2004.

Agfa continues to slide deep into the red following two profit
warnings in September and October as it reports a net loss of 7
million euros in the first nine months of the year.


===========================
C Z E C H   R E P U B L I C
===========================


VLARSKE STROJIRNY: Investors Eye Bankrupt Engineering Firm
----------------------------------------------------------

Several investors have shown interest in former engineering
company Vlarske strojirny Slavicin, Czech News Agency reported.

Bankruptcy assets administrator Michal Brenko said that he has up
to ten bids for the company, mostly from Czech Republic, as well
as from Germany and Italy.

The winner selected by Brenko has to be approved by the company's
creditor committee and the court.

This year, Brenko put out a closed tender for the company, in
which Hodonin-based firm Hokinka won. Hokinka, however, failed to
settle the full purchase price and a Brno court ruled that the
firm would be sold to the bidder that would offer the best terms.  

Vlarske strojirny Slavicin, a former producer of weapons and
textile machines, was declared bankrupt in October 1995.

The company's premises, occupying an area of over 300 hectares,
host some 200 buildings, a forest, railway siding, heat source,
and paved carriageways.


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


AIR LIB: Sees Eur92MM Deficit in 2001
-------------------------------------

AirLib sees a deficit of between 84 and 92 million euros this
year and is close to being bankrupt, AFX News reports.

In mid-November Air Lib, formerly Swissair unit Air Liberte/AOM,
has lodged a lawsuit against Crossair and other Swissair units
for damages and interest worth 460 million euros.

Swissair Group sold its 49.9% stake in Air Lib this summer to
Holco, an entity set up to salvage the French carrier, and agreed
to pay 1.3 billion French francs to help finance a rescue
package.

Swissair Group failed to pay that amount in full.


LVMH: Sells Gucci Shares to Credit Lyonnais
-------------------------------------------

LVMH Moet Hennessy Louis Vuitton said Monday it has sold 11.57
million shares in Gucci NV to Credit Lyonnais SA for 1.147
billion euros.

The sale will allow LVMH, the world's largest luxury goods group
known for the Louis Vuitton, Christian Dior and Givenchy brands,
to book a significant capital gain in 2001 accounts, it said.

LVMH further received an exceptional dividend of $7 dollars a
share on its Gucci holding, or a total of 90 million euros.

The shares were the last remaining Gucci stake still held by LVMH
following an agreement with Gucci and Pinault-Printemps-Redoute
in September.

In October, LVMH sold 8.4% of Gucci's capital for approximately
900 million euros.

The retail activities of LVMH, which has issued three profit
warnings, comprise mainly the loss-making Duty Free Shoppers
(DFS) chain and Sephora.


VALEO SA: Moody's Cuts Ratings to A3
------------------------------------

Moody's Investors Service downgraded the long-term debt ratings
of automotive components supplier Valeo to A3 from A2 and its
short-term ratings to Prime-2 from Prime-1.

The negative outlook reflects execution risks relating to the
Chapter 11 filing of Valeo's US subsidiary Valeo Electrical
Systems.

Moody's added that the rating downgrade was triggered by the
difficult industry conditions with further volume declines
expected in the US and European markets and continued price
pressures and margin erosion.

Valeo is headquartered in Paris and posted annual sales of 9.1
billion euros in 2000.


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


BANKGESELLSCHAFT BERLIN: Agrees Cost Cuts With Unions
-----------------------------------------------------

Bankgesellschaft Berlin has agreed a 450-million-euro package of
cost cuts with unions as it battles for survival after heavy
losses.

Based on a Financial Times report, the debt-ridden Berlin bank
had agreed with unions a package of measures under which it will
save 300 million euros on 4,000 job cuts over the next four
years, while other cost cuts will save 150 million euros.

The required measures were expected to be in place by the end of
March.

Last month, Bankgesellschaft reported a loss of 369 million euros
for the first nine months of this year.

The bank said the loss was due to its underperforming real estate
business and stock write-downs.


BIODATA INFORMATION: Reveals Losses in Third Quarter
----------------------------------------------------

Debt laden Biodata Information Technology AG, which filed for
insolvency in November, reported a consolidated loss of 70
million euros in the third quarter of 2001.

Biodata's write-offs of trade accounts receivable, goodwill
amortization and discontinued operations summed up to more than
60 million euros.

Based on the adjustments, revenues in the third quarter account
for 1.9 million euros and 3.95 million euros in the first nine
months from January to September.

Biodata said that it has not succeeded in closing projects this
year and could not replace them with new deals and customers
either, causing its sales to severely drop.

Moreover, an investigation of Biodata's financial situation in
collaboration with external auditors showed significant
allowances regarding trade accounts particularly initiated by
international affiliated companies and offices.

The Lichtenfels-based company said it now aims to rid its
property of debts with an insolvency plan and a financial
investor.

For more information, contact Burg Lichtenfels, at telephone +49
(0) 6454 9120-118, +49 (0) 6454 9120-132, fax +49 (0) 6454 9120-
180, or via email info@biodata.com


KIRCHGRUPPE: To Sell Telecinco Stake
------------------------------------

KirchGruppe is in talks with French broadcaster TF1 to divest its
25% stake in Spanish TV channel Telecinco, the AFX News reported.

According to vice chairman Dieter Hahn, negotiations are "far
advanced" and no decisions have been made yet.

Hahn added that speculations that the price of the stake is about
1 billion Deutshce marks "are not unrealistic" but declined to
give an exact price.

KirchGruppe debts are estimated to be between 4 billion and 7
billion, most of which is in the form of loans with German banks.


SPAR HANDELS: Sells Kodi Diskontladen to Improve Liquidity
----------------------------------------------------------

Germany's leading food retailer Spar Handels AG sold the discount
chain Kodi Diskontladen GmbH to property company Meridian
Immobilien & Vermogensverwaltung as part of its aim to improve
the group's liquidity, Frankfurter Allgemeine Zeitung reported.

Spar Handels head Fritz Ammann described the sale, which should
fetch an eight-figure sum, as a continuation of restructuring
measures.

Over the past months, the company has succeeded in reducing the
fall in turnover from 8% in the middle of the year to 2% at the
beginning of December.

Ammann assured that debts have not increased from the 2.39
billion Deutsche marks.


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


MALEV AIRLINES: Sells Hotel Stake to HVB
----------------------------------------

Cash-strapped Malev Hungarian Airlines Rt sold its 50% stake in
Pannonia Hotel Kft to HVB Hungary Rt bank, the Warsaw Business
Journal reported Monday.

Executives at the three contracting parties would not disclose
the sale price, but market players said that Malev can collect up
to $25 million from the deal.

HVB signed the contract after Malev failed to find an investor in
a tender that started in March.

It is expected to complete the payment before the end of 2001,
Pannonia financial director Olivier Granet said.

Malev Hungarian Airlines, which registered an after-tax loss of
9.35 billion forints last year, is struggling to fulfill its
restructuring plan that includes 400 job cuts in 2002.


MOL RT: Puts Ft15BB Bond to Auction
-----------------------------------

MOL Rt offered 15 billion forints in one-year bonds at an auction
Monday, the Warsaw Business Journal reported.

The bond has a nominal value of 10,000 forints each.

The bond issue marks the first phase of the oil and gas company's
long-term bond program of 50 billion forints. It will also cover
general company financing transactions, help MOL diversify its
sources of finance, and increase the proportion of forint-
denominated liabilities within its total debt.

Managers of the issue are CA IB Securities Rt, CIB Securities Rt,
Deutsche Bank Rt and OTP Securities Rt.

In the first nine months of 2001, MOL revealed losses of 14.29
billion forints, while its gas division lost 111 billion forints.


===================
L U X E M B O U R G
===================


CARRIER1 INTERNATIONAL: Company Profile
---------------------------------------

Name:               Carrier 1 International S.A.
Address:            Route d'Arlon 3                      
                    L-8009, Strassen
                    Luxembourg
Phone:              (011) (41-1) 297-2600

Website             http://www.carrier1.com

SIC:                Communications Services  
Employees:          277  
Net Loss:           US$495.1 million
Total Assets:       US$472.4 million
Total Liabilities:  US$567.1 million
Outstanding Shares: 42,872,000

Type of Business: Carrier1 International SA is global provider of
telecommunications services including Internet, broadband, voice,
data-center and dialup access communications services.

Trigger Event: Since the company's existence in 1998, the global
data carrier has recorded mounting losses. Financial problems
stem from its difficulty to meet interest payments for its August
2002 bonds.

Current market conditions further hinder the loss-making
company's attempts to raise funds to refinance long-term debt or
to fund its operations.

Chief Executive:  Robert Michael McTighe
Board Chairman:   Victor Pelson
Finance Director: Alex Schmid

Auditors:         Deloitte & Touche Experta AG
                  

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


KPN NV: Will Launch Mobile Internet Service Arm
-----------------------------------------------

Troubled Dutch telecommunications company KPN will begin testing
its i-mode mobile Internet service this week, the Financial Times
reported Monday.

KPN gave no financial details of its investment but forecasted it
would increase revenues because i-mode customers were expected to
spend more accessing a range of Internet-based entertainment,
communication and information sites using a mobile phone handset.

KPN has struggled to manage 22.3 billion euros of debt. This
month, it overhauled its balance sheet via a 5-billion-euro share
offer.


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


BRAATHENS ASA: Shareholders Accept SAS Offer
--------------------------------------------

Majority of the shareholders of Norwegian airline Braathens ASA
have accepted the takeover offer of Scandinavian Airlines System.

According to a Reuters report, SAS said it has received
acceptances for shares representing 29% of Braathens' share
capital for its public offer launched in November.

Including a separate purchase agreement with Braathens' main
owners, Braganza, Bramora, and KLM, which together own a 68.8%
stake, the acceptance level is around 98%.

SAS said this means the condition of a 90% acceptance level for
its offer has been satisfied.

Norway's competition authority approved the purchase of Braathens
in October.


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


ELEKTRIM SA: Fails to Make Bond Payment, Puts Company in Default
----------------------------------------------------------------

Warsaw-based telecommunications, cable manufacturing, and power  
engineering conglomerate Elektrim SA said it will not settle its
479 million euros in convertible bond redemption payments due
Monday, putting the company in default.

According to a report from Dow Jones Newswires, Elektrim did not
receive additional financing needed to redeem the bonds, although
it did plan to pay 8.4 million euros in interest outstanding.

Merrill Lynch International is negotiating on Elektrim's behalf
with bondholders to arrange a restructuring plan.

Several bondholders have considered filing to place Elektrim in
bankruptcy after a seven-day grace period expires on December 24,
the news agency added.

Elektrim has 212 million euros cash on hand, less than the amount
needed to make full redemption.


LOT AIRLINES: IPO Put on Hold
-----------------------------

The planned initial public offering (IPO) of LOT Polish Airlines
(LOT) was put on hold despite government pledges that the stock
market launch is integral to its 2002 privatization program, the
Warsaw Business Journal reported Monday.

Analysts welcomed the decision, saying the poor financial
standing of Poland's national airline and a pessimistic short-
term outlook would be bad timing for an IPO.

They also said that LOT should first find a new partner to
replace bankrupt carrier Swissair, which holds 25% of LOT. The
65% stake belongs to the treasury while the remaining 7% stake is
from the employees.

Earlier, British Airways Plc denied it is eyeing a stake in LOT
after the Polish government said it was interested.

LOT, whose net loss more than tripled to 252 million zlotys in
the first half of this year compared with the same period of
2000, received $90 million (62 million pounds) in emergency aid
from the Polish government last month.


NETIA HOLDINGS: Subsidiary Refuses to Pay $17.6MM
-------------------------------------------------

Netia Holdings III B.V. did not make a payment of approximately
$17.66 million due on December 17, in return for which Netia
would have received approximately $6.6 million and 6.7 million
euros, pursuant to its cross-currency swap agreement with JP
Morgan Chase Bank early this year.

Netia previously announced plans to engage in discussions with
its bondholders concerning a consensual reorganization of its
balance sheet to reduce its 8-billion-Swedish krona debt and
interest burdens and that it would be withholding the interest
payment to which its swap payment relates.

Netia Holdings III B.V. is a subsidiary of Netia Holdings S.A.,
Poland's largest alternative fixed-line telecommunications
services provider.

Netia's American Depositary Shares are listed on the Nasdaq
National Market while the company's ordinary shares are listed on
the Warsaw Stock Exchange.

Contact Anna Kuchnio, Investor Relations, at telephone +48-22-
330-2061 for further information.


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


ADCORE AB: To Cancel Compulsory Redemption
------------------------------------------

Adcore AB, a Stockholm-based corporation focused on IT and
management consulting services, said Monday that its board has
resolved to cancel the current compulsory redemption process
applying to minority holdings in Adcore Stockholm AB.

Early this month, Adcore AB entered an agreement with enterprise
Quatre Chenaux Sverige AB regarding the divestiture of its
majority holding in Adcore Stockholm AB.

This transaction, where the final payment will not be determined
until the completion of Adcore's Consolidated Financial Statement
for 2001, has been structured to avoid any adverse effect on the
minority share of equity of Adcore Stockholm AB.

This transaction implies Adcore AB taking steps to benefit from  
capital losses on shares in Adcore Stockholm AB, although does
not imply Adcore AB selling its loss deductions.

As a consequence of the cancellation of the present compulsory  
redemption process, the acquirers will determine how the minority
of some 2% of Adcore Stockholm AB will be processed.

For more information, please contact Ole Oftedal, CEO, at
telephone +46 (0)70 592 7599, via email ole.oftedal@adcore.com or
Frans Benson, Investor Relations, telephone +46 (0)8 635 8054,
via email frans.benson@adcore.com


SCANDINAVIA ONLINE: Accepts Eniro Offer to Buy SOL Shares
---------------------------------------------------------

Majority of the shareholders in Scandinavia Online AB has
accepted Eniro AB's offer to acquire all outstanding shares of
the Swedish Internet portal operator.

SOL said Monday that Eniro would delist the company from the
Stockholm Stock Exchange and the Oslo Stock Exchange as soon as
possible.

Eniro has also decided to extend the acceptance period for its
offer to January 11 to enable additional shareholders to accept
the offer.

In the third quarter of 2001, Scandinavia Online revealed an
operating loss of 57.1 million Swedish krona, down from 64.4
million in the second quarter.

For further information, contact Birger Steen (CEO) at telephone
+46 709 35 28 18 or via email birger.steen@scandinaviaonline.se

Scandinavia Online AB (publ)
Box 1388
111 93 Stockholm
Sweden  
Tel: +46 8 587 810 00  
Fax: +46 8 587 810 40


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


SULZER MEDICA: Plans Share Buy-Back
-----------------------------------

Sulzer Medica AG, Europe's biggest orthopedics device maker,
plans to repurchase up to 250,000 American Depositary Shares
through January 31.

According to a Dow Jones Newswires report, the Swiss medical
devices company will make the ADSs available for purchase by U.S.
and Canadian employees, pursuant to its employee stock purchase
plan.

Sulzer Medica has about 99.9 million ADSs outstanding.


SWISSAIR GROUP: Crossair Confirms Fleet Takeover
------------------------------------------------

Crossair AG chief executive officer Andre Dose said the airline
would definitely take over 52 planes of Swissair Group AG, AFX
News reported.

The fleet includes 26 long-haul and 26 medium-range aircraft of
the Swiss aviation group, which is currently under creditor
protection,

According to Dose, Crossair has received positive signals that
Zurich airport could be preserved as a major junction for
intercontinental destinations, as envisaged under the Swissair
rescue plan, the news agency said.


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


CORUS GROUP: Capital Interested in Corus Shares
-----------------------------------------------

Corus Group plc said Monday it has received a notification from
The Capital Group Companies, Inc. on behalf of its affiliates,
including Capital Guardian Trust Company, Capital International
Limited, Capital International S.A., Capital International, Inc.
and Capital Research and Management Company.

The Capital Group Companies, Inc. last week announced it was
interested in 189,213,799 ordinary shares of 50p each
representing 6.05% of Corus Group plc's issued capital.

These holdings form part of funds managed on behalf of investment
clients by the companies.


EXCITE@HOME: Will Close U.K. Venture After Failing to Find Buyer
----------------------------------------------------------------

Excite UK, the Internet venture of British Telecom and
Excite@Home, will close on Friday after it failed to find a
buyer, the Financial Times reported.

The business was put up for sale earlier this year after
Excite@Home closed most of its other operations in Europe.

Although several potential bidders expressed interest in Excite
UK, managing director Rebecca Miskin said that buyers had been
wary given the unattractiveness of the Internet sector.

They were also concerned about Excite@Home's announcement two
weeks ago that it could not guarantee support for Excite UK's
technology platform beyond the end of the year, FT added.

Excite U.K. declined to comment on the size of its loss or how
much cash it used up.


MARCONI PLC: Sells Optical Business to Bookham Technology
---------------------------------------------------------

Troubled telecom equipment group Marconi said Monday it is off-
loading its Optical Components business in exchange for 12.891
million ordinary shares, or 9.9% of the current issued share
capital of Bookham Technology plc.

New Marconi chief executive Mike Parton said that the 19.7-
million-pound deal is in line with the group's strategy to manage
its non-core assets.

Marconi Optical Components, headquartered in Caswell
Northamptonshire, is an independent business unit within
Marconi's Capital Group that focuses on providing a portfolio of
integrated photonic solutions for optical networks.

Marconi was recently booted out of the FTSE 100 Index of blue
chip shares following the collapse of its share price.


NTL INCORPORATED: Bondholders Warn on Rescue Terms
--------------------------------------------------

NTL bondholders have warned the debt-laden cable company that it
has just six weeks to outline the terms of its planned
restructuring.

According to a report from the Financial Times, bondholders are
growing restless at the lack of information on the company's
rescue plan that will include swapping part of the company's $17
billion debt pile for new equity and a likely debt write-off of
$6 billion.

The warning has brought shares of NTL, which is quoted in New
York, to fall 13% from 71 cents to 62 cents on Monday's trading,
leaving the value of the company at about $160 million.


NTL INCORPORATED: Struggles to Scale Debt
-----------------------------------------

The board of NTL Inc met Monday to discuss a major restructuring
amid some expectation that debt-holders will have to write off
about US$6 billion of the company's US$17 billion debt, the
Financial Times reported.

The paper, which did not cite its sources, was giving its slant
on weekend reports detailing the plight of the debt-laden cable
operator.

The company has already cut 2,000 jobs. It will put a pay freeze
for its executive and review all operating and capital costs to
scale debt.


PPL THERAPEUTICS: Names Geoff Cook as New Chief
-----------------------------------------------

Biotechnology firm PPL has named Geoff Cook, who has worked for
the past year as the Roslin-based company's business development
director, as successor to chief executive Ron James, the Herald
reported yesterday.

Cook will take over on January 1, with James staying on through
the end of February as part of the handover process.

Following a tumultuous year for PPL, the new chief executive's
top priority will be to get products to market and start
generating sales.

PPL had a net cash of 4.1 million pounds in July, which it said
would last only until the end of the year.

                                  ***********

    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.

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