/raid1/www/Hosts/bankrupt/TCREUR_Public/020221.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, February 22, 2002, Vol. 3, No. 38

                             Headlines

* G E R M A N Y *

EXNORM HAUS: Prefab Home Builder Begins Insolvency Proceedings
HELKON MEDIA: Banks Grant Media Company EUR20MM
KIRCHGRUPPE: Bertelsmann Denies Eyeing Any Kirch Assets
KIRCHGRUPPE: Conflict With Deutsche Bank Continues
KIRCHGRUPPE: Financial Figures Threaten Listings

KIRCHGRUPPE: Rupert Murdoch Negotiates With Kirch Creditors
KIRCHGRUPPE: News Corp Will Not Invest in KirchMedia or Premiere
KIRCHGRUPPE: Taking Bids for Formula One
KIRCHGRUPPE: Axel Springer Dumps Hope of Claiming Cash From Kirch
KIRCHGRUPPE: Will Sell Telecino Stake to Stay Afloat

SCHNEIDER TECHNOLOGIES: Seeks Lifeboat Solution for Subsidiary

* G R E E C E *

OLYMPIC AIRWAYS: EU Considers State Aid Inquiry
OLYMPIC AIRWAYS: Greece Will Restructure State Airline

* I T A L Y *

ALITALIA SPA: Will Lay Off 2,500 Workers
FIAT SPA: Names Jean Margerie as Managing Director of French Unit

* P O L A N D *

ELEKTRIM SA: BRE Bank Backs Delay of Meeting
NETIA HOLDINGS: Trading Halted on Warsaw Stock Exchange

* U N I T E D   K I N G D O M *

BIOGLAN PHARMA: Company Profile
BIOGLAN PHARMA: Goes Into Administration
BIOGLAN PHARMA: London, Irish Exchange Suspends Bioglan Shares
BIOGLAN PHARMA: Puts 400 Jobs at Risk as Bioglan Goes Bust
BRITISH AIRWAYS: S&P Ready to Downgrade BA Rating to Junk Levels

ENERGIS PLC: Will Sell Overseas Units to Raise Cash
ENODIS PLC: Shares Slide 3.8% on Restructuring Plan
ENODIS PLC: Will Raise $100MM in Rights Issue
IMPERIAL CHEMICAL: New Shares Not Entitled to Interim Dividend
IMPERIAL CHEMICAL: Rights Issue Draws Support From Shareholders

INVENSYS PLC: Plunges Anew on Debt Concern
TELEWEST COMMUNICATIONS: Shares Sink to 19.5p



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


EXNORM HAUS: Prefab Home Builder Begins Insolvency Proceedings
--------------------------------------------------------------
An insolvency proceeding for Steinheim-based prefabricated
housing manufacturer ExNorm Haus GmbH was opened before the
district court of Aalen, Die Welt reported Wednesday.

Schneider, Kloss & Partner is the insolvency manager.  Pending
approval of a creditors' committee and other procedural hurdles,
SK&P is prepared to sell the company's assets to Kampa Haus AG.
A full-text copy of ExNorm's announcement concerning the Kampa
Haus transaction is available on ExNorm's Web site at
http://www.exnorm.dein the "Presseberichte" section.

The market for prefabricated buildings has declined.  As a
result, ExNorm finds itself unable to service debts accumulated
in connection with the construction of an oversized production
hall in 1997.

Last year, ExNorm constructed about 600 to 650 prefabricated
houses and achieved a turnover of around 160 million Deutsche
marks ($71.2 million).  ExNorm sells a typical 110 square meter
house for just under 110,000 euros.



HELKON MEDIA: Banks Grant Media Company EUR20MM
-----------------------------------------------
Helkon Media AG, which briefly faced insolvency at the end of
2001, secured an additional 20 million euros from creditor banks
Vereins- und Westbank AG and Stadtsparkasse Koln, the Borsen-
Zeitung reports.

Helkon Management says that the loan guarantees the continuation
of the Company's restructuring and cost reduction program
initiated last autumn.

The board, Borsen-Zeitung added, is determined to reduce debts
and improve the capital ratio by the end of 2002.

Shares in the film company gained 8% to 2.16 euros on Monday.

At October 31, 2001, Helkon's balance sheet, while showing the
company to be solvent by 72 million euros, reflected a sizeable
123 million euro working capital deficit, with current
liabilities outpacing current assets by a 3 to 1 margin.  Full-
text copies of Helkon's annual reports, financial statements and
current press releases, in German and English, are available at
http://www.helkon.de


KIRCHGRUPPE: Bertelsmann Denies Eyeing Any Kirch Assets
-------------------------------------------------------
Bertelsmann AG chairman Thomas Middelhoff told the daily
Handelsblatt that his company has no interest in buying any of
KirchGruppe's assets.

The German media giant was thought to be considering buying
KirchPayTV's loss-making Premiere World business, or its 58.3%
stake in SLEC, the Formula One holding company.

Bertelsmann has been continually named as a powerhouse behind
talks between politicians, media companies and Kirch's creditor
banks.

The KirchGruppe -- http://www.kirchgruppe.de-- is a leading
company in the international film and television business.  It
holds prime market positions in its core business activities of
license trading, free-TV, pay-TV, production, New Media, film
technology and software development. As the central holding
company TaurusHolding manages the group of companies and is
responsible for the operative and strategic areas with its three
subholdings KirchMedia, KirchPayTV and KirchBeteiligung.


KIRCHGRUPPE: Conflict With Deutsche Bank Continues
--------------------------------------------------
The conflict between KirchGruppe founder Leo Kirch and Deutsche
Bank's outgoing chairman Rolf Breuer rages on.  Lately, Mr Kirch
was furious about Mr Breuer's comment that "financial
institutions are not prepared to put any further means at Kirch's
disposal, under the current circumstances."

Kirch Gruppe, according to the Financial Times, is understood to
have appointed a law firm to explore a possible 800 million euros
damage claim against Mr Breuer.

Meanwhile, Mr Breuer's recent rescue plan presented to the
Bavarian mogul, involving the sale of some of Kirch's most
valuable assets, drew fire from the Kirch management, who saw it
as an attempt to dismantle the group.

The paper added that Kirch executives are convinced Deutsche Bank
is walking out on the German group, briefing against it to
potential investors and leaking information to journalists.

People close to the bank, however, say it is merely acting as any
modern investment bank would.


KIRCHGRUPPE: Financial Figures Threaten Listings
------------------------------------------------
The absence of audited figures for large parts of KirchGruppe is
preventing the debt-laden media giant from raising funds.

According to a report from the Financial Times, investors and
lenders have discovered that some of the group's subsidiaries
keep unaudited records.

Holes in Kirch's financial reports are threatening the German
group's attempts to list its television business on the stock
market.



KIRCHGRUPPE: Rupert Murdoch Negotiates With Kirch Creditors
-----------------------------------------------------------
Media magnate Rupert Murdoch, whose British satellite television
channel operator British Sky Broadcasting Group PLC owns 22.6% of
loss-making pay-TV channel Premiere World, told bank creditors of
debt-ridden Kirch he would not take control of the German media
empire's Premiere World unit.

Mr. Murdoch, according to a report from the daily newspaper
Sueddeutsche Zeitung, is not prepared to take charge of Premier
because Kirch's debts are too high and the pay-TV channel's
losses are too daunting.

BSKyB has an option that it can exercise from October 2002 to
force the troubled Munich-based media empire to pay it 1.3
billion euros ($1.14 billion) plus interest in cash for its stake
in Premiere if the business has not been floated by then.  Early
this month, the British company said it did not know whether
Kirch could make the payment and was therefore writing off its
investment in Premiere.

Meanwhile, Kirch's creditors are pushing for the sale of the
company's most valuable assets, including a 40% stake in Axel
Springer Verlag AG, Formula One rights and Premier World, to
recoup their loans.

DZ Bank, under pressure from Deutsche Bank, decided to call in
its debts of some 400 million euros to the group.  Dresdner Bank
is demanding Kirch to pay back a 460 million euro loan in April,
while Bayerische Landesbank has 1.9 billion euros in Kirch loans
outstanding.  Deutsche Bank is one of Kirch's largest creditors
with an estimated 600 million euros in outstanding loans.


KIRCHGRUPPE: News Corp Will Not Invest in KirchMedia or Premiere
----------------------------------------------------------------
Debt-laden German media company KirchGruppe faced another blow
Wednesday as News Corp. said it will not invest any more money in
Kirch Group's film rights and pay-TV businesses, Dow Jones
Newswires reports.

"News Corp. has made a firm and final decision not to make any
further investment in either Premiere or KirchMedia," a News Corp
spokeswoman said.  She did not comment further.

News Corp. owns 2.48% of KirchMedia, while Rupert Murdoch's
British Sky Broadcasting Group PLC, has 22.6% of Premiere. Both
companies have made writedowns to cover their exposure to Kirch.

A Kirch spokesman had said earlier there had been no concrete
talks with Mr. Murdoch.

Kirch could not be reached to comment on News Corp.'s
announcement.


KIRCHGRUPPE: Taking Bids for Formula One
----------------------------------------
Kirch Group is opening its doors to equity investors,
particularly targeting carmakers, to take a stake in Formula One
motor racing, Dow Jones Newswires reports.

According to a Kirch spokesman, the company made offers to the
carmakers in the past, but were not accepted.

The carmakers that race in Formula One include Fiat SpA's
Ferrari, DaimlerChrysler AG's Mercedes-Benz, Ford Motor's U.K.-
based Jaguar, Bayerische Motoren Werke AG and Renault SA.

Formula One is one of many assets that Kirch may have to sell to
stay afloat after amassing billions of dollars of debt in an over
ambitious expansion drive.


KIRCHGRUPPE: Axel Springer Dumps Hope of Claiming Cash From Kirch
-----------------------------------------------------------------
German newspaper publisher Axel Springer Verlag AG is set to
pursue a larger equity stake in broadcaster ProSiebenSat.1 AG as
it abandoned hopes of claiming a 767 million euro cash payment
from the heavily indebted Munich-based media empire Kirch Group,
people familiar with the situation tell The Wall Street Journal.

"We have to be realistic about Kirch Group's current situation,"
one of these people said.

For Axel Springer, which has been looking for ways to expand into
television, the solution could prove to be an opportunity for
them to gain a foothold in German broadcasting.

The two media groups have been in conflict over a put option that
gives Axel Springer the right to sell its 11.5% stake in
ProSiebenSat.1 to Kirch Group for 767 million euros and is due in
April.

Axel Springer -- http://www.asv.de-- is facing its own financial
and operational challenges.  In 2001, Axel's preliminary results
show sales revenue totaling EUR 2,868 million -- a dip from EUR
2,902 million in 2000 -- and a loss of EUR 191 million on the
year, versus a EUR 98 million profit last year.


KIRCHGRUPPE: Will Sell Telecino Stake to Stay Afloat
----------------------------------------------------
Kirch is in advanced talks to sell its 25% stake in Spanish
broadcaster Telecinco to raise much-needed cash, the Financial
Times reports.  Details on the transaction were not disclosed.

The debt-laden media group is also negotiating to sell its 40%
stake in German newspaper publisher Axel Springer, even though
progress on the 1.2 billion euro deal has been delayed.

Kirch ran into difficulties after acquisitions, including a stake
in Formula One racing, failed to add to earnings. Sales have also
dropped and losses mounted at pay-television business Premiere.


SCHNEIDER TECHNOLOGIES: Seeks Lifeboat Solution for Subsidiary
--------------------------------------------------------------
Michael Jaffe, the temporary insolvency administrator of consumer
electronics group Schneider Technologies AG is seeking a lifeboat
solution for the company's entertainment electronics subsidiary
Schneider Electronics AG, the Frankfurter Allgemeine Zeitung
reported.

The electronics unit has orders for the manufacture of 30,000 TV
sets and can therefore continue production until the middle of
May.

Mr. Jaffe declined to provide any details about the funding
source, but says that the support of major customers has allowed
the company further time in which to find a lifeboat solution.

Turkheim-based Schneider Technologies filed for insolvency on
January 28 in a local court in Memmingen, Swabia, after banks
refused to supply any further funds, as reported in the January
30 edition of the Troubled Company Reporter Europe.  Formal
insolvency proceedings are expected to begin at the end of March.

Schneider employs around 700 people and has been in trouble
for years and came close to collapse in 1998.  The latest crisis
came about after the banks refused to supply any further funds.
The Bavarian economics minister Otto Wiesheu has criticized the
management of Schneider Technologies for not acting on the advice
laid down in the rescue plan of the government. Instead of
cutting jobs and raising quality, it boosted its workforce and
pushed up its sales revenue, but not its earnings.  Trade union
IG Metall also criticized the Schneider management board for the
way it had gone about filing for insolvency . . . upset that its
wasn't consulted before the Company's insolvency application was
lodged with the court.



===========
G R E E C E
===========


OLYMPIC AIRWAYS: EU Considers State Aid Inquiry
-----------------------------------------------
Olympic Airways may face a European Commission inquiry into
whether government subsidies given to the debt-ridden airline are
in breach of European Union law.

The EU official, who asked not to be named, said the European
Commission received a complaint that Olympic has not fulfilled
conditions attached to the subsidies, handed out during the
1990s.

If the Commission rules against the airline, it could be asked to
repay the Greek state, putting the troubled airline under further
pressure.

Olympic Airways lost its eligibility for further aid when the
Commission approved in 1998 a final $50 million cash injection
and some $378 million worth of state guarantees to finance a
renewal of the carrier's fleet.  As reported in the September 14,
2001, edition of the Troubled Company Reporter Europe, the
airline's debt load is roughly 120 million euros and believed
to be increasing.  Following two failed restructurings in the
past five years, recent talks about rescue deals involving Axon
Airlines, Cyprus Airways and Australian venture capital
Integrated Airline Solutions bubbled to the surface and
subsequently fizzled-out.  Credit Suisse First Boston has served
as Olympic's financial advisor.


OLYMPIC AIRWAYS: Greece Will Restructure State Airline
------------------------------------------------------
The Greek government is currently attempting to push through a
final restructuring plan for Olympic Airways to save the state
airline from bankruptcy.

The move comes after the Olympic Airways' privatization failed,
putting the carrier's future and the jobs of hundreds of workers
in doubt.

Credit Suisse First Boston is the adviser to the privatization.

Australian venture capital firm Integrated Airline Solutions,
which was bidding for a 51-65% stake in the airline, missed last
Friday's deadline to come up with the money.

Analysts now fear that Olympic could become the third European
airline to fold in the last six months, following the failures of
Swissair and Sabena.

Olympic, like all other airlines worldwide, has been hit hard by
a slump in passenger numbers in the wake of the World Trade
Center attacks in September last year.



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


ALITALIA SPA: Will Lay Off 2,500 Workers
----------------------------------------
Italy's loss-making flagship airline Linee Aeree Italiane S.p.A
will proceed with plans to lay off 2,500 jobs from now up to
2003, Dow Jones Newswires reported Wednesday.

Alitalia has until May 6 before it can actually start
implementing the layoffs, according to Italian laws.

Negotiations with the company's eight unions pushing for an
alternative cost-cutting plan continue for another week, Dow
Jones added.

Alitalia recently approved cost-cutting proposal involving job
cuts of 15% of its work force. The company also agreed to grant
workers "solidarity contracts" that would lower the hours and
wages of employees in order to maintain their positions.

The unions, however, want more.

The eight unions' plan focuses on blocking the renewal of
employees' contracts for two years. This will involve a total
freeze on any salary increases, giving up paid holiday owed by
the company and cutting social security payments for Alitalia.

Two weeks ago, as reported in the Troubled Company Reporter
Europe, the Italian government was still looking to fill the CEO
slot for Alitalia Linee Aeree Italiane SPA, following Domenico
Cempella's decision to step down on February 2 as chief executive
officer.  There's no word yet on how that search process is
going.


FIAT SPA: Names Jean Margerie as Managing Director of French Unit
-----------------------------------------------------------------
Jean Margerie was appointed managing director of Fiat Auto
(France), the French automobile division of Turin-based car
manufacturer Fiat SpA.

The appointment will pave the way for the formal reorganization
of Fiat Auto, the group's largest division.

Analysts believe that losses at Fiat Auto 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.



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


ELEKTRIM SA: BRE Bank Backs Delay of Meeting
--------------------------------------------
Warszawa-based telecommunications and power conglomerate Elektrim
SA said that BRE Bank SA does not disagree with the steps taken
by the management board of Elektrim SA in order not to hold the
shareholders' meeting on May 25, 2002.  The move came after
Elektrim called the shareholders' meeting for April 10.

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.

In January, as reported in the Troubled Company Reporter Europe,
a group of bondholders filed a petition in a Warsaw court calling
for Elektrim's bankruptcy after a December 17 payment default.
The court dismissed the petition and ordered Elektrim to
begin composition, or debt restructuring proceedings to repay its
bondholders.  Elektrim filed its own petition with the Court,
proposing a 40% reduction of its debt and a three-year grace
period for repaying the remainder.

The company is now in talks with holders of its defaulted 480
million euros worth of unsecured bonds.  Centaurus Capital
Limited represents a majority of the bondholders and Bingham Dana
LLP provides legal counsel to the bondholders.  In the
composition proceeding, 124 creditors assert claims totaling
PLN2.33 billion ($560 million).


NETIA HOLDINGS: Trading Halted on Warsaw Stock Exchange
-------------------------------------------------------
Netia Holdings S.A., Poland's largest alternative provider of
fixed-line telecommunications services, said Wednesday that the
trading of its shares on the Warsaw Stock Exchange was halted
between 12:00 p.m. and 2 p.m. on February 19 at the company's
request.

Trading was initially halted pending the dissemination of
material news about the company.

The trading of its American Depositary Shares on the Nasdaq
National Market was also halted on the same day prior to the
start of the trading.

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 Warsaw-based company again failed to issue payment of $850
million in bonds after a 30-day grace period ended in mid
January.

Earlier this week, Netia released 2001 figures showing a far
worse than expected consolidated net loss of 11.15 billion zlotys
($274 million) and net debt of 2.86 billion zlotys ($690.59
million).

For more information, contact Anna Kuchnio at telephone +48-22-
330-2061 or Taylor Rafferty at telephone +44-020-7936-0400



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


BIOGLAN PHARMA: Company Profile
-------------------------------
Name :             Bioglan Pharma Plc
Address :          40A Wilbury Way
                    Hitchin, Hertfordshire SG4 0AP
                    United Kingdom

Phone :             +44-1462-633-286
Fax :               +44-1462-451-400
Website:            http://www.bioglan.com/

SIC :               Pharmaceutical Manufacturing & Distribution
Employees:          567
Revenues:           GBP103.1 million/US$147.1 million (01-2001)
Net Loss:           GBP9.2 million/US$13.2 million (01-2001)
Total Assets:       GBP257.4 million/US$367.6 million (01-2001)
Total Liabilities:  GBP137.2 million/US$195.9 million (01-2001)

Type of Business: Bioglan Pharma is engaged in research,
development, manufacture, distribution & marketing of
pharmaceutical preparations.

Trigger Event: Bioglan fell into administration after banks
foreclosed on its 112 million pounds of debts.

The group was funded by debt rather than equity and practiced
aggressive accounting. Debt-to-equity ratio rose to more than
150% in July 2001.

Chairman and CEO: Terry I. Sadler
Finance Director: Peter Johnson

Bankers:               National Westminster Bank PLC
Financial Advisers:    Goldman Sachs
Stockbrokers:          Goldman Sachs Equity Securities (UK)
Auditors:              KPMG
Law Firms:             Norton Rose
Financial PR Advisers: Buchanan Communications

Outstanding Shares:   96.6 million

Last published in TCR-Europe on February 21


BIOGLAN PHARMA: Goes Into Administration
----------------------------------------
Hertfordshire-based Bioglan Pharma is petitioning the High Court
on Wednesday to appoint an administrator after banks foreclosed
on its 112 million pounds of debts.

According to a Financial Times report, the decision came only
hours after ICN Pharmaceuticals pulled out of talks about a
rescue takeover that would have seen the US company take on most
of Bioglan's debts.

ICN is understood to have broken off talks late Tuesday because
of irritation that its identity as a bidder was leaked at the
weekend, the paper said.

Bioglan bankers Royal Bank of Scotland, Barclays and Fortis were
said to have lost patience with negotiations.

RBS is owed 55 million pounds, Barclays 40 million pounds and
Fortis 15 million pounds, those close to the company said.

The company's woes stem from over-ambitious expansion in recent
years, funded by debt rather than equity, and a practice of
aggressive accounting.

In the six months to the end of July, pre-tax losses jumped from
746,000 pounds to 35.7 million pounds, while the debt-to-equity
ratio rose to more than 150%.


BIOGLAN PHARMA: London, Irish Exchange Suspends Bioglan Shares
--------------------------------------------------------------
Bioglan's shares were suspended on the London and Irish Stock
Exchanges on Wednesday morning, hours before the debt ridden
pharmaceutical company went bust.

The shares closed at 6.25p on Tuesday, valuing the company at
just over 6 million pounds (about $8.5 million), well below its
peak of 872 million pounds last year.

According to the Financial Times, Bioglan has until the end of
the month to restructure debts of 105 million pounds with Royal
Bank of Scotland, Fortis and Barclays.

People close to the talks said the focus was now on restructuring
the debt, possibly with a capital injection from US group
Quintiles.


BIOGLAN PHARMA: Puts 400 Jobs at Risk as Bioglan Goes Bust
---------------------------------------------------------
About 400 jobs are at risk as biotech firm Bioglan PLC was forced
to cease trading and called in administrators.

The debt-laden company has been off-loading some of its smaller
businesses in an attempt to stave off receivership and control
its debt crisis. Unfortunately, talks to secure a buyout deal
with US rival ICN Pharmaceuticals failed.

Bioglan's debts soared in 2001 during a failed takeover attempt
for the skincare business of Bristol-Myers Squibb. The
biotechnology company owes 105 million pounds to a consortium
of banks that include Royal Bank of Scotland PLC, Barclays PLC
and Fortis.


BRITISH AIRWAYS: S&P Ready to Downgrade BA Rating to Junk Levels
----------------------------------------------------------------
Cash-strapped British Airways suffered a major setback when US
credit rating agency Standard & Poor indicated it was ready to
downgrade the company's corporate credit rating to junk.

Following the airline's announcement of its "Future Shape And
Size Strategy" last week, S&P said the strategy could result in a
ratings downgrade towards the end of February.

S&P analyst Virginie Casin said she was concerned that a slower
than expected recovery in the transatlantic market or failure to
achieve cost savings could hit BA's target to achieve free cash
flow.

Facing its biggest loss since privatization 15 years ago, BA last
week announced said it would slash an additional 5,800 jobs, or
12% of its workforce, offer some low-fare tickets and drop 10
routes to survive.

BA was badly hit by the September 11 catastrophe and the rise of
low cost airlines such as easyJet and Ryanair. The airline's debt
level is 339 million pounds higher at 6.5 billion pounds ($9.28
billion), almost three times its market value.


ENERGIS PLC: Will Sell Overseas Units to Raise Cash
---------------------------------------------------
Energis Plc, the struggling Internet traffic carrier that issued
a profit warning in January, will sell its loss-making overseas
businesses as it tries to secure the continued support of its
banks, the Financial Times reported, without citing sources.

Selling the businesses will be a significant U-turn for Energis,
which has spent about 1 billion pounds ($1.4 billion) on its
European businesses and only last year beefed up its German
operations with the purchase of web-hosting company Ision.

Energis' lenders want higher interest payments in return for
looser covenants and are unlikely to take additional equity in
the group.

The London-based carrier began a review on January 24 after it
said it might breach covenants made on a 725 million pounds
($1.04 million) credit line in November with Dresdner Kleinwort
Wasserstein, Bank of America and Barclays Capital,
HypoVereinsbank, Royal Bank of Scotland, and WestLB.

Other banks involved in the Energis loan are JP Morgan, BNP
Paribas, CIBC and HSBC.

Energis is now valued at 237.7 million pounds, compared with 14
billion pounds in March 2000.


ENODIS PLC: Shares Slide 3.8% on Restructuring Plan
---------------------------------------------------
Enodis Plc's stocks slid 3.5p, or 3.8%, to 89.5, as London-based
commercial food service equipment manufacturer said it would sell
new shares and bonds to cut debt.

According to chief executive Andrew Allner, the company will
raise more than 70 million pounds ($100 million) through a rights
issue and has also agreed new financing arrangements worth 470
million pounds, including a 100-million-pound bond issue.

In January, the company revealed that debt has increased in spite
of asset sales and job cuts. Net debt stood at 376 million pounds
at the end of December, compared with 366 million pounds at the
end of September.

According to a Financial Times report, Allner said that difficult
market conditions, especially in the U.S., contributed to the
increase.

Enodis' market capitalization at the close of trading on Tuesday
was 233 million pounds.


ENODIS PLC: Will Raise $100MM in Rights Issue
---------------------------------------------
Enodis will raise more than 70 million pounds ($100 million)
through a rights issue to get the company's capital structure
right, the Financial Times reported, citing chief executive
Andrew Allner.

The three-for-five rights issue at 50p a share will raise 71.5
million pounds net.

Allner said the rights issue would not affect his plans to reduce
debt.

"I expect debt to be 200 million pounds by September 2003," he
said.

Net debt at the end of December stood at 376 million pounds,
compared with 366 million pounds at the end of September and 439
million pounds a year ago.

The food equipment maker has also agreed new financing
arrangements worth 470 million pounds, including a 100-million-
pound bond issue, the paper added.


IMPERIAL CHEMICAL: New Shares Not Entitled to Interim Dividend
--------------------------------------------------------------
Imperial Chemical Industries' new shares resulting from the
rights issue will not be entitled to the 9.75 pence second
interim dividend, Dow Jones Newswires reported.

The move comes in order to take account of the resulting pricing
differential of the existing ordinary and new ordinary shares,
the news agency added.

The new shares will be included separately in FTSE indices as a
secondary line.

In accordance with the ground rules, the nil paid shares will be
included as fully paid.

On March 6, the new shares will be included within the existing
ordinary share line and the secondary line will be deleted.


IMPERIAL CHEMICAL: Rights Issue Draws Support From Shareholders
---------------------------------------------------------------
More than 90% of Imperial Chemical Industries PLC shareholders
are expected to offer their support to the 808 million pounds
rights issue, the Financial Times reported.

"No one is jumping through hoops about having to stump up the
cash, but we haven't run into any resistance from the major
shareholders," Jim Renwick, head of equity capital markets at UBS
Warburg, ICI's broker and the principal underwriter to the rights
issue said.

The 7-for-11 rights issue is priced at 180p, a 45% discount to
the prevailing share price on February 4. The proceeds will be
used to cut debts from 2.9 billion pounds to 2.1 billion pounds.

Last week, the London-based chemical group admitted to a 453
million pounds funding gap in its 7.6 billion pounds pension and
healthcare schemes, far greater than had been expected.

Investors will vote to approve the principle of the rights issue
at an extraordinary meeting on Monday. The offer will remain open
until March 20.


INVENSYS PLC: Plunges Anew on Debt Concern
------------------------------------------
Shares of Invensys Plc fell as much as 9 pence, or 9.4%, to 87
pence on investor concern about the strategy of London's largest
engineering company to sell assets too cheaply to reduce debt,
Bloomberg reported Wednesday.

The company's shares also dropped 12% Tuesday, wiping about 710
million pounds ($1 billion) off the company's market value.

The two-day decline came as Chief Executive Officer Rick
Haythornthwaite said it plans to raise 1.5 billion pounds ($2.1
billion) by March 2003 from selling businesses that produce
sensors and valves.

Part of the new strategy is to split the company into the
production management and energy management businesses in place
of the present four. Most of its activities in industrial
components will be sold.

Investors were not totally convinced on the proposed proceeds of
the sales, analyst Patrice Lambert de Diesbach of Paris' CIC EIFB
brokerage said.

Invensys has been cutting jobs and selling assets to cut its 3
billion pounds of debt, 89% of its market value, on speculation
it may breach loan agreements after posting a first-half loss.

Outstanding loans include a $1.25 billion credit line arranged
two years ago by HSBC Holdings Plc and UBS Warburg that comes due
in 2005.

Last year, Invensys got a $1.5 billion credit from a group of
banks led by Bank of America Corp., Barclays Plc, BNP Paribas SA
and J.P. Morgan Chase & Co. That expires in 2004.


TELEWEST COMMUNICATIONS: Shares Sink to 19.5p
---------------------------------------------
Shares of Surrey-based cable operator Telewest Communications Plc
lost 3.7% to 19.5p, Bloomberg reported Wednesday.

The fall came as Telewest said it would write down the value of
its assets by 1 billion pounds when it announces in two weeks
full-year pre-tax loss of 1.8 billion pounds.

As of November, Telewest's net debt stood at around 4.9 billion
pounds, twice its market capitalization.

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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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