/raid1/www/Hosts/bankrupt/TCREUR_Public/020220.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, February 20, 2002, Vol. 3, No. 36


                             Headlines

* B E L G I U M *

FLV FUND: Discloses Significant Shareholdings

* F R A N C E *

MOULINEX SA: Workers Go Against SEB

* G E R M A N Y *

COMMERZBANK GROUP: WCM Seeks to Raise Stake in Commerzbank
DEUTSCHE TELEKOM: Liberty Media Stands Firm on DT Bid
KIRCHGRUPPE: Debt KRUGEL-GRUPPE: Applies for Insolvency Proceedings

* I T A L Y *

BLU SPA: Shareholders Set to Meet in March Re Asset Sale
FIAT SPA: Considers Management Revamp at Auto Division

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

KPN NV: E-Plus to Launch I-Mode by End of April
UNITED PAN-EUROPE: Microsoft Sells 7.8% Stake in UPC

* N O R W A Y *

BROVIG ASA: Bondholders Accept Delay of Debt Installments

* P O L A N D *

ELEKTRIM SA: May Meet With Bondholders This Week
NETIA HOLDINGS: Says Revenues in 2001 up by 22%

* S P A I N *

QUIERO TELEVISION: Beleaguered TV up for Sale

* S W E D E N *

LM ERICSSON: Moody's Lowers Senior Debt Rating to Baa2
SONG NETWORKS: S&P Puts Rating on Watch Negative

* U N I T E D   K I N G D O M *

BIOGLAN PHARMA: Confirms Receiving Several Offers
MARCONI PLC: FSA will Bash Marconi's Top Executives
MARCONI PLC: Will Sell Italian Operations
NTL INCORPORATED: Faces Pressure to Release Financial Details
P&O PRINCESS: S&P Revises Rating to Developing
RAILTRACK GROUP: Moody's Ups Bond Rating to Baa1
RAILTRACK GROUP: S&P Revises Ratings to Watch Developing
TEESIDE POWER: S&P Cuts Ratings to D
UPF THOMPSON: Land Rover-KPMG Deal Saves Thousands of Jobs


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


FLV FUND: Discloses Significant Shareholdings
---------------------------------------------

Flanders Language Valley Fund disclosed on Monday changes in the
company's shareholdings.

The venture capitalist said that the New York-based Brookdale
Group LLC now holds 1.24 million ordinary shares (6.02%) of the
company, while Swiss company BB Hitech AG holds 1.04 million
ordinary shares (5.06%).

As of February 15, FLV Fund Comm. VA has 20,604,495 issued and
outstanding ordinary shares that represent the issued and
outstanding share capital of FLV Fund Comm. VA and which are all
admitted to listing on Nasdaq Europe.

In addition, the company has outstanding warrants that entitle
the holder(s) to subscribe to an aggregate of up to 1,181,500
ordinary shares.

FLV Fund in the third quarter of 2001 posted a net accounting
loss of $18.9 million and net operating loss of $17.9 million.
Its close association with troubled vocal technology specialist
Lernout & Hauspie Speech Products NV has made it difficult to
continue operations.

For more inquiries, please contact Piet Vandermeersch at
telephone +32 (0)57 22.94.30 or fax +32 (0)57 20.68.42.


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


MOULINEX SA: Workers Go Against SEB
-----------------------------------

With the exception of the union Confederacion General del Trabajo
(CGT), all members of the central works council of Moulinex voted
Monday to appeal against the partial takeover of bankrupt French
home appliance manufacturer by its rival, SEB.

The works council will lodge its appeal in the next few days with
a court in Versailles.

Since October, the workers' representatives have asserted that
two errors were committed during the white good manufacturer's
partial takeover proceedings.

First, that a meeting of Moulinex's group works council for the
entire Europe was not held.

Secondly, the secretary of the central works council was not as a
representative of the workers, but only invited to the hearings
as a representative of the works council.


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


COMMERZBANK GROUP: WCM Seeks to Raise Stake in Commerzbank
----------------------------------------------------------

Investment company WCM is seeking to lift its 5.5% holding in
Commerzbank to just under 10%, the Financial Times reported.

Commerzbank, which suffers from poor profitability and high
costs, has been the subject of persistent takeover speculation
for almost two years, including a failed attempt to merge with
Dresdner Bank.

The Frankfurt-based bank said earlier it lost 189 million euros
($163 million) before taxes for the fourth-quarter as it has set
aside more money for bad loans and took a charge of 283 million
euros to pay for an overhaul, which includes shedding 3,400 jobs.


DEUTSCHE TELEKOM: Liberty Media Stands Firm on DT Bid
-----------------------------------------------------

U.S. media group Liberty Media on Monday has pledged massive
investments in Deutsche Telekom in its last-ditch effort to save
its 5.5 billion euro ($4.8 billion) acquisition of the 60% stake
in the cable-TV network of DT, the Bonn-based telecom giant that
is aiming to cut its debt of 65 billion euros ($55.8 billion) to
50 billion ($42.9 billion) euros by the end of this year.

The Independent News reported that Liberty would invest 8.3
billion euros on upgrading the cable system, which carries TV,
but it did not meet the Federal Cartel Office's demand that the
network must be made capable of carrying voice traffic and high-
speed Internet access.

Liberty said it would not ask the German government to overrule
the cartel office's objections to the deal and would make no
concessions to get clearance.

"Even if we got that approval, we would continue to have to fight
against the cartel office," Liberty lawyer Frank Montag of law
firm Freshfield Bruckhaus Deringer said.

The cartel office has until February 28 to decide on the deal.


KIRCHGRUPPE: Debt ------------------------------------

While it was understood that KirchGruppe has debts of about 6
billion euros and about 2.5 billion in contingent liabilities, it
was recently reported that the struggling Munich-based media
empire has actually 8 billion euros in debt and 5 billion euros
in other commitments.

None of the creditor banks has complete knowledge of Kirch's
finances because they are not allowed access to its books, so
more debts could still surface.

Most of Kirch's loans are secured with collateral, which in
Germany means that the lenders cannot compel the company to open
its books.

If the new figures are accurate, Kirch could be in danger of
collapse.

A Kirch spokesman declined to comment on the company's debt load.


KRUGEL-GRUPPE: Applies for Insolvency Proceedings
-------------------------------------------------

Krugel-Gruppe has filed for insolvency after the German furniture
trader failed to secure financial backing from majority
shareholder Dieter, Frankfurter Allgemeine Zeitung and FT
Information reported.

The move also followed after Krugel-Gruppe failed to find a buyer
for its assets and core operations.

Insolvency proceedings have been applied in order to secure
customer deposits. Hans Raab has been appointed as administrator.

Although details of the future of the company's outlets were yet
unavailable, the company said it intends to keep its core
business.

Industry observers say the collapse of the company can be
attributed to weak development in German furniture trading in
general.

The group revealed turnover of 125 million euros in 2000. It has
a workforce of 630.


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


BLU SPA: Shareholders Set to Meet in March Re Asset Sale
--------------------------------------------------------

Rome-based mobile phone operator Blu has called a shareholders'
meeting on March 5 to discuss a long-planned sale or lease of its
assets.

Shareholders, including Italian motorways operator Autostrade and
the UK's BT Group, must decide whether to sell or lease the
business as a whole or in parts if any firm offers are made, or
the possibility of a bridge loan and reduction of the company's
capital to cover losses and liquidation.

Apart from BT and Autostrade, Blu's other shareholders are the
Caltagirone group, Rome-based bank BNL, Italgas and Hong Kong's
Distacom.

Blu has been struggling to find a buyer since it failed to obtain
a high-speed, new generation mobile license at an auction last
year.

In January, Blu said that Telecom Italia Mobile SpA, Enel-
controlled Wind SpA, Hutchison Whampoa-backed H3G SpA, Vodafone
unit Omnitel Pronto Italia SpA and Autostrade-Sitech SpA had
submitted non-binding offers to buy all or part of Blu.

If the board does not agree on a sale by March, the shareholders
would have to inject more money to keep the company operating.

A BT spokeswoman earlier said that liquidation would be an option
if no firm bids will come.

Blu was valued at 1.2 billion euros ($1.04 billion) in December.


FIAT SPA: Considers Management Revamp at Auto Division
------------------------------------------------------

Turin-based car manufacturer Fiat is expected to announce this
week a new management structure for its Fiat-Lancia, Alfa Romeo,
International Development and Services businesses as part of a
sweeping overhaul.

The changes will pave the way for the formal reorganization of
Fiat Auto, the group's largest division, into four new units.

It is understood that Giancarlo Boschetti, the new chief
executive of Fiat Auto, will promote Gianni Coda from head of the
carmaker's Latin American operations to a new position heading
Fiat-Lancia. Silvano Cassano, who oversees Fiat's in-car
information and telematics activities, is likely to become head
of the services business.

The measures follow mounting losses at Fiat Auto, which analysts
believe could reach 400 to 480 million euros for 2001.

The debt burden of Fiat is among the highest of the European auto
sector, with a net debt of about 6 billion euros ($5.21 billion)
at the end of 2001.

Fiat is targeting at least break-even this year in autos.


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


KPN NV: E-Plus to Launch I-Mode by End of April
-----------------------------------------------

Heavily indebted Hague-based telecommunications company Royal KPN
NV announced Monday that its newly acquired German operating unit
E-Plus would start offering by the end of April I-Mode services,
a technology that enables mobile phone users to send e-mails and
access the Internet.

The move will be the first large-scale rollout of I-Mode services
in Europe.

NTT DoCoMo has licensed KPN's expansion of the technology, which
previously governed the Netherlands and Belgium, to include E-
Plus, with its 7.5 million subscribers in Germany.

NTT DoCoMo will provide E-Plus with the patents, services know-
how and technologies needed to launch the services, initially on
the (current) network and later on third-generation mobile
networks.

The pact will last until January 1, 2012 during which time NTT
DoCoMo will collect licensing fees.

KPN was the natural partner for DoCoMo. The Japanese firm holds a
15% stake in the Dutch company.

KPN chief financial officer Maarten Henderson has said that the
company currently has 8.8 billion euros in cash on hand, while
net debt as of December 31 is estimated at 16.5 billion euros.


UNITED PAN-EUROPE: Microsoft Sells 7.8% Stake in UPC
----------------------------------------------------

Microsoft, who paid about $300 million in 1999 for a 7.8% stake
in United Pan-European Communications, sold all its interest in
cash-strapped cable company ahead of a planned debt
restructuring.

The sale came as Microsoft faced losing what little value was
left in the stake following a 7.5 billion euros debt-for-equity
swap orchestrated by United GlobalCom, UPC's US parent, and UGC's
72% shareholder, Liberty Media.

Microsoft's stake was once worth 2.3 billion euros, but dwindled
to just 7.7 million euros on Friday.

The software giant no longer owns any shares except for two
warrants, giving it the right to buy 11.4 million UPC shares. It
declined to say how much it sold the stake for.

UPC, which has gross debt of 9.3 billion euros and faces a
funding gap of up to 1 billion euros next year, declined to
comment.


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


BROVIG ASA: Bondholders Accept Delay of Debt Installments
---------------------------------------------------------

Brovig ASA's bondholders of loan ISIN NO 001 007390.1 of NOK178.5
million have accepted the company's proposal to defer interest
payment on June 30 to August 27.

With the granted postponed debt installments and the granted
postponed interest payments, the Oslo-based company, which offers
services for well-testing and marginal oil production to the oil
industry based entirely on special purpose ships, should have the
necessary room for maneuver in the first half of 2002 to bring
the ongoing work on its various projects onwards in the direction
of contracts.

For more information, contact Managing Director Hans-Jorgen
Wibstad at telephone + 47 23 100 900.


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


ELEKTRIM SA: May Meet With Bondholders This Week
------------------------------------------------

Warszawa-based telecommunications and power conglomerate Elektrim
may start negotiations with holders of its defaulted bonds this
week, the Warsaw Business Journal reported, citing Centaurus
Capital Limited vice president Jarek Golacik.

Asset management firm Centaurus Capital represents a majority of
the bondholders.

Golacik added that the meeting could take place in London where
Law Debenture Trust Corp., the bondholders trustee that filed a
petition in Warsaw calling for Elektrim's bankruptcy in January,
and Klesch and Co., the financial consultancy advising the Polish
concern on its debt-restructuring program, are located.

In January, the group of bondholders filed the petition in a
Warsaw court calling for Elektrim's bankruptcy after the concern
defaulted on the repayment of 480 million euros worth of
unsecured bonds in December 17.

The court later dismissed the petition and ordered Elektrim to
begin composition, or debt restructuring proceedings to repay its
bondholders.

Elektrim filed a court petition on the same month, proposing a
40% reduction of its debt and a three-year grace period for
repaying the remainder.

Elektrim has been suffering serious liquidity problems since
1999, when the then CEO Barbara Lundberg launched an ambitious
and high leveraged round of telecom and cable TV acquisitions.


NETIA HOLDINGS: Says Revenues in 2001 up by 22%
-----------------------------------------------

Netia Holdings, Poland's largest alternative provider of fixed-
line telecommunications services, said Monday its revenues for
2001 increased by 22% to PLN538.9 million ($135.2 million)
compared to PLN442.7 million for 2000.

The Warsaw-based company added that EBITDA for 2001 reached
PLN78.2 million ($19.6 million), a year-on-year increase of 237%.

Netia further revealed that the six non-cash exceptional items of
PLN740.1 million ($185.7 million) affected the financial results
for 2001.

In particular, three items totaling PLN405.8 million ($101.8
million) impacted the financial results for Q4 2001, and were
related to a provision for impairment of fixed assets, the event
of default on Netia's long-term debt and the effect of canceling
all swap transactions.

As of December 31, the company has cash of PLN486.9 million
($122.1 million), excluding restricted investments of PLN47.5
million ($ 11.9 million), while consolidated shareholders' equity
was negative PLN343.2 million ($86.1 million).

Netia, whose net debt stands at PLN2.86 billion ($690.59
million), added that net loss amounted to PLN1.149.2 billion
($288.3 million), compared to a net loss of PLN362.0 million in
2000. The increased loss for 2001 was mainly attributable to the
six exceptional items described above as well as an increase in
net financial expenses.

Netia found itself in financial trouble in December when it
defaulted on the 1999 Senior Dollar Notes and 1999 Senior Euro
Notes totaling more than $13.3 million.

The company again failed to issue payment after a 30-day grace
period ended in mid-January.


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


QUIERO TELEVISION: Beleaguered TV up for Sale
---------------------------------------------

Spanish digital television platform Quiero Television SA is up
for sale, the Financial Times reported, citing Auna, Quiero's
largest shareholder.

The television company has signed only 130,000 clients since it
began operating in May 2000, too few to compete with satellite
TV's 2.7 million Spanish subscribers, the paper said.

Quiero, which broadcasts 14 programs, is losing 15 million euros
($13.1 million) a month, and has more than 450 million euros of
debt, the FT said.

Quiero TV's shareholders, which include Auna, publishing house
Planeta and Carlton Television of the UK, injected 300 million
euros ($261 million) in capital last week to keep the company
afloat until a buyer is found.

Auna is negotiating with two potential buyers and hopes to
complete a sale by mid-March.


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


LM ERICSSON: Moody's Lowers Senior Debt Rating to Baa2
------------------------------------------------------

Moody's Investors Service said Monday it has downgraded to Baa2
from Baa1 the long-term debt ratings of LM Ericsson and confirmed
at Prime-2 the company's rating for short-term debt.

Moody's said that the rating downgrade is based on the
expectation of a continuing erosion of orders for 2nd generation
wireless systems and additional deferrals of installation plans
for 3rd generation equipment in the market.

As that transition gap lengthens, the Stockholm-based mobile
telecom manufacturer is likely to experience severe earnings
pressure and cash flow erosion from working capital build and
customer financing, on- and off-balance sheet.

A further extension of the technology transition with the
resulting restructuring needs would likely lead to a gradual
erosion of Ericsson financial strength, Moody's added.

Ericsson last year reported a full-year loss of 21.1 billion
Swedish kronas (US$1.9 billion).


SONG NETWORKS: S&P Puts Rating on Watch Negative
------------------------------------------------

Standard & Poor's said Monday it placed its B- long-term
corporate credit rating of telecommunications network operator
Song Networks N.V. on CreditWatch with negative implications.

The CreditWatch placement, S&P said, follows a revision of Song's
liquidity position, and the need for additional funding in the
short term.

At the same time, Standard & Poor's also placed its CCC senior
unsecured rating on Song on CreditWatch with negative
implications.

Standard & Poor's credit analyst Gustaf Arfalk said that the
CreditWatch placement reflects heightened concerns over Song's
liquidity, and the company's diminishing financial flexibility,
resulting in a need for additional funding in the short term.

The situation is due to continued high cash spending following
quarter-on-quarter revenue decline. In the fourth quarter, Song's
revenues declined by 1% quarter-on-quarter to 621 million Swedish
kronor. Cash drain amounted to 421 million Swedish kronor,
including positive working capital movements of 706 million
Swedish kronor.

Song had about 7.5 billion Swedish kronor ($713 million) of debt
outstanding at year-end 2001.

Earlier, Moody's Investors Service has lowered the ratings of
Song Networks to Caa3 from Caa1.


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


BIOGLAN PHARMA: Confirms Receiving Several Offers
-------------------------------------------------

Bioglan PLC said discussions with third parties interested in
acquiring the debt-laden British biotechnology company are
ongoing and it hopes to conclude a deal as soon as possible.

According to the Monday edition of AFX News, a company
spokeswoman confirmed that Bioglan have received approaches from
different parties. She declined to name the parties involved in
the talks.

She added that Bioglan has not heard anything from American drug
company ICN Pharmaceuticals, which reportedly plans to submit a
bid for the company's dermatology business based in the UK with
operations in the US and continental Europe.

Bioglan has been off-loading some of its smaller businesses in an
attempt to stave off receivership and control its debt crisis.
The biotechnology company owes 105 million pounds to a consortium
of banks that include Royal Bank of Scotland PLC, Barclays PLC
and Fortis.

The business is now valued at 7.1 million pounds.


MARCONI PLC: FSA will Bash Marconi's Top Executives
---------------------------------------------------

The Financial Services Authority, the chief City regulator, will
reprimand Marconi after the telecommunications equipment maker
failed to update its shareholders regarding the dire state of
trading in the run-up to a profits alert last July.

The Observer newspaper, citing industry executives, reported that
the FSA's six-month inquiry has come down against Marconi's
former bosses including Lord Simpson and chairman of aerospace
and medical systems group Smiths Industries Sir Roger Hurn.

During the profits warning in July, Simpson was Marconi's chief
executive and Hurn was chairman. Both resigned after shareholders
complained that the warning was mishandled.

The FSA is probing as to why the profit alert was issued only two
weeks after Simpson delivered an very encouraging announcements.

The FSA has been given new powers to fine companies that break
stock market listing rules, but they came in only last November
and cannot be applied retroactively.

Under the old regulations, FSA chairman Howard Davies can either
do it in private or to reprimand Marconi in public.

Observers suggest the FSA will most likely go for a public
rebuke.


MARCONI PLC: Will Sell Italian Operations
-----------------------------------------

London-based telecom equipment company Marconi will sell its
activities in Italy and have Morgan Stanley as consultant for the
operation, a report on Il Sole 24 Ore and FT Information said on
Sunday.

Marconi's operations in Italy range from military radio
communications to avionics and employ 3,000 people. Its
activities generate a combined turnover of 500 million euros.

The paper's sources said that telecommunications infrastructure
and services provider Tecnosistemi is interested in acquiring
some of the Marconi's assets.

Italian aerospace and defense group Finmeccanica denied any talks
with Marconi.

The unprofitable company, which has about 1 billion pounds in
cash, has been selling non-phone equipment assets, including its
optical components business and data systems unit, to help reduce
debt of about 3.5 billion pounds.

Marconi is now valued at 667 million pounds.


NTL INCORPORATED: Faces Pressure to Release Financial Details
-------------------------------------------------------------

Heavily-indebted British cable television operator NTL will be
pressed to reveal its current finances this week when it meets
advisers to funds controlling most of its bonds, the Financial
Times reported.

Bondholder representatives want to examine NTL's forecast
cashflows and remaining cash and credit lines before laying down
demands in the planned restructuring of NTL.

The private meeting in New York is thought to be the first direct
negotiation between NTL executives and the senior bondholder
group.

The restructuring is expected by bondholders to take at least six
months, triggering bondholders' fears about how much cash the re-
structured company will have left by the time it is completed.

It is understood that the bondholders group will appoint
investment bank UBS Warburg as financial adviser, and is using
law firms Cadwalader, Wickersham & Taft and Fried, Frank, Harris,
Shriver & Jacobson.

The three will agree not to trade in NTL bonds in return for
seeing internal forecasts.

NTL in January said it was looking at strategic and
recapitalization alternatives for its $17 billion debt. The
restructuring is expected to include an injection of new capital,
as well as swapping much of the company's $8 billion of bond debt
into equity.


P&O PRINCESS: S&P Revises Rating to Developing
----------------------------------------------

Standard & Poor's said Monday it had revised its CreditWatch
implications of P&O Princess Cruises PLC's BBB long-term
corporate credit rating to developing from negative.

The action follows news that the shareholder vote on the proposed
merger of the London-based cruise operator with rival operator
Royal Caribbean Cruises Ltd. has been postponed indefinitely
after an unsolicited bid from No. 1 cruise line Carnival Corp.

The ratings on P&O Princess were initially placed on CreditWatch
with negative implications in November 2001, to reflect a
material increase in financial leverage, which the company is
likely to incur if the proposed merger with Royal Caribbean
pushes through.

Under the terms of Carnival's new offer, P&O Princess
shareholders would receive 0.30 Carnival shares per P&O Princess
share, with a partial cash alternative of 2.50 pounds ($3.60) per
share.

This amounts to about 5.50 pounds per P&O Princess share, which
would result in Carnival paying about $5.34 billion, of which up
to 45% may be in cash if the partial cash alternative is taken
up.

In addition, Carnival would assume P&O Princess' outstanding
debt, which was about $1.4 billion, net of cash balances as of
December 2001.


RAILTRACK GROUP: Moody's Ups Bond Rating to Baa1
------------------------------------------------

International credit ratings agency Moody's Investors Service on
Monday upgraded to Baa1 the Railtrack plc's GBP400 million 3.5%
exchangeable bonds due 2009 and affirmed the company's Baa1 long
term and P2 short-term ratings.

Moody's said all Railtrack's long term ratings remain on review
for downgrade.

The ratings agency said it had upgraded the bond following a vote
last Thursday, when the holders of the exchangeable bonds voted
to enter into a standstill agreement that would waive their
rights to call in the company's debt.

All of the finance creditors of the British railway operator have
agreed to enter into standstill agreements, providing Railtrack
PLC with the stability it needs during the period of Railway
Administration.

Railtrack PLC, which generated revenues of GBP2.5 billion in the
year ending March 2001, was placed into railway administration in
October when the government refused to provide further funding.


RAILTRACK GROUP: S&P Revises Ratings to Watch Developing
--------------------------------------------------------

Ratings agency Standard & Poor's revised on Monday Railtrack
PLC's CreditWatch on the exchangeable bonds' senior unsecured BB+
rating to developing from negative.

The move follows the approval of the standstill agreement by
holders of the rail operator's GBP400 million exchangeable bonds.

At the same time, all other ratings on Railtrack remain on
CreditWatch with developing implications, where they were placed
in October 9, two days after the company was placed under a
Railway Administration Order.

Standard & Poor's will continue to monitor the position of all
Railtrack bondholders over the next few weeks as the various
proposals to bring forward a new structure for the management of
the U.K.'s railway infrastructure develops.


TEESIDE POWER: S&P Cuts Ratings to D
------------------------------------

Standard & Poor's said Monday it lowered its long-term senior
secured debt ratings on notes issued by Teesside Power Financing
Ltd. (TPFL) to D from BB, following nonpayment of interest and
principal due on December 15, 2001.

The debt service of TPFL is reliant on dividend payments from
Teesside Power Ltd., owner of an electricity generating plant in
northeast England.

At the same time, Standard & Poor's removed the ratings from
CreditWatch with negative implications where they were placed on
November 30.

Standard & Poor's credit analyst Paul Lund said that with Enron
Europe Ltd.'s entry into administration on November 28, it is
highly probable that its liabilities, under power purchase
agreements with Teesside Power, will no longer be honored.

Enron Corp. owns a 42.5% stake in Teesside Power.


UPF THOMPSON: Land Rover-KPMG Deal Saves Thousands of Jobs
----------------------------------------------------------

Thousands of car jobs have been saved after Land Rover, a
subsidiary of U.S. auto manufacturer Ford Motor Company, and
KPMG, receivers of insolvent Wolverhampton-based chassis supplier
UPF-Thompson, have agreed to settle a controversial legal battle,
Ananova reported Monday.

The dispute erupted after KPMG, acting on UPF's behalf, demanded
35 million pounds from Land Rover to continue supplying chassis
frames, to which Land Rover refused.

As receivers, KPMG wanted to renegotiate the terms of the supply
contract at UPF to keep the firm going until a buyer could be
found.

Land Rover has now agreed to take on the debt at UPF,
guaranteeing supply and jobs in the beleaguered British
manufacturing sector.

The deal also sees new receivers Grant Thornton brought in by
Land Rover to run UPF as an ongoing business.

UPF employs 550 staff in its sites in Wolverhampton, Walsall and
Congleton, Cheshire.

Land Rover would not disclose the debt taken on but a spokeswoman
says it is less than the 49 million pounds run-up by UPF before
it passed into administration in December.

                                        ***********

          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 2002.  All rights reserved.  ISSN 1529-2754.

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