/raid1/www/Hosts/bankrupt/TCREUR_Public/020419.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, April 19, 2002, Vol. 3, No. 77


                            Headlines

* C Z E C H   R E P U B L I C *

CESKA SPORITELNA: AVS Signs Contracts for US$ 146.9MM Shares

* F R A N C E *

G. MEDICAL: Goes Into Liquidation  
SAUVAGNAT: Ketta Acquires French Company Sauvagnat for EUR 4MM

* G E R M A N Y *

CEYNIQ AG: Board Members of Insolvent Software Firm Face Arrest
FAIRCHILD DORNIER: Receives Second Funding Boost Worth US$ 90MM
HERLITZ AG: Core Business of Paper Company Attracts Investors
PREMIERE WORLD: Bertelsmann Eyes Comeback in Troubled Channel
KIRCHGRUPPE: No Comment on Report Kirch Will Sue Breuer
PHILIP HOLZMANN: Schroeder Pleas on Creditor Banks Anew
PREMIERE WORLD: Bertelsmann Eyes Comeback in Troubled Channel
RUWEL GROUP: Bayonne Employees Threaten Further Strike Action

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

KPNQWEST NV: Brands as Speculation 'Funding Gap' Forecasts
KPN NV: Denies 500 in Job Redundancies at German Unit E-Plus

* P O L A N D *

ELEKTRIM SA: Notice Shareholders Representation at EGM

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

SWISSAIR GROUP: Nuance Group to Be Sold to Italian Gruppo PAM

* U N I T E D   K I N G D O M *

ARTHUR ANDERSEN: Client Defections Force Firm to Cut 1,500 Jobs
ARTHUR ANDERSEN: Ernst & Young Spoils KPMG Merger This October
CLUBHAUS PLC: DTI Grants Shareholders Request to Probe Management
ENERGIS PLC: To Use up GBP 700MM of Bank Credits by May
INTERX PLC: Proposed Sale of Software, Other Property
INTERX PLC: Q2 Ending Dec. 30, 2001 Reveal GBP 153.1MM Loss
ITV DIGITAL: Tips Towards Liquidation as It Withdraws Offer
MARCONI PLC: Job Cuts Rumored Ahead of Results Announcement
NTL INCORPORATED: France Telecom Hopes to Recover EUR 1.8BB


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


CESKA SPORITELNA: AVS Signs Contracts for US$ 146.9MM Shares
------------------------------------------------------------

The Austrian savings bank foundation Anteilsverwaltungssparkasse
(AVS), after the first week of buying out shares from the second-
largest bank in the Czech Republic Ceska Sporitelna, AVS has
signed purchase contracts with shareholders for 13.2 million
shares.

According to the Prague Business Journal, the shares that AVS
signed to underwrite are valued at almost CZK 5 billion (US$
146.9 million), out of the total 140 million issued.

AVS is offering CZK375 (US$11) per share for the shares,
representing a premium of 22% over the 6-month weighted average
trading price.

In March AVS applied to the Czech Securities Commission
to secure approval for AVS to make an unconditional and unlimited
tender offer for the common shares issued by the Czech bank.

The terms of the offer required AVS to pay a premium of 1% over
the last closing price, and an implied 2001 price-book multiple
of 2.3x as well as 12.1x estimated 2002 earnings consensus.

Since August 1999, the stock price has increased almost 100% due
to the successful implementation of a restructuring plan by Ceska
sporitelna's majority shareholder, Erste Bank.

The Troubled Company Reporter Europe said that AVS is the biggest
single shareholder of Erste Bank with a 41% stake. While AVS acts
for its own account, it wishes to emphasize that the intended
offer is fully compatible with and supportive of the strategy of
Erste Bank and Ceska sporitelna.

JP Morgan has acted as exclusive financial advisor to AVS on this
Transaction, the report added.

AVS has authorized Patria Finance, a.s. to arrange for the
implementation of such tender offer.

AVS, formally known as DIE ERSTE osterreichische Spar-Casse
Anteilsverwaltungssparkasse, is a legal entity organized as a
savings bank holding company (Anteilsverwaltungssparkasse) under
the laws of the Republic of Austria, having its registered
offices at Graben 21, A-1010 Vienna, Austria.


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


G. MEDICAL: Goes Into Liquidation  
---------------------------------

The Nanterre commercial court put the French health-visits
company G. Medical Expand Sante into liquidation last week, a
report obtained from Le Monde and the FT Information said
Wednesday.

Last week marks the time after almost a year to the day after the
company was acquired and taken over by French businessman Georges
Ghosn.

Before its takeover, the French health company had a workforce of
780 compared with 350 at present.

Most of the company's remaining employees, reported to be
affected by job redundancies in the near future, have not been
paid since the end of January.

Expand Sante, according to the papers, managed a network of
personnel charged with the duty to make health visits on behalf
of pharmaceutical companies.

Expand Sante's 2001 turnover is believed to be below EUR15
million and will incur a deficit of EUR3 million.

Ghosn is the businessman who bought and sold France Soir, the
loss-making French daily newspaper, years ago.  

Later, he invested EUR15 million in order to implement a
modernization at Expand Sante. However, Ghosn now regrets his
claiming he could have done better to have stuck with an industry
he knew well.

He blames the collapse of his medical company on "the extremely
closed milieu of the pharmaceutical industry".


SAUVAGNAT: Ketta Acquires French Company Sauvagnat for EUR 4MM
--------------------------------------------------------------

Ketta, the Spanish garden furniture manufacturer, has acquired an
insolvent French company of the same sector Sauvagnat, for EUR4
million, reports the Expansion and FT Information Monday.

The commercial tribunal of the French town of Grenoble had
previously announced the liquidation of the French company.

Keta has bought the premises, assets, patent rights, brand-names
and the stock of the French group.

The Spanish firm guarantees that it will offer immediate
employment to 50 members of staff of Sauvagnat and that it will
take over another 30 employees of the French company by the end
of this year.

Sauvagnat, which operates plants in Saint Honore and Sassenage,
has about 180 employees.


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


CEYNIQ AG: Board Members of Insolvent Software Firm Face Arrest
---------------------------------------------------------------

The two board members of insolvent software development and
consultancy firm Ceyoniq have been arrested, a Die Welt and FT
Information report said Wednesday.

Klaus Pollmann, the senior public prosecutor, said that a bank
had reported the offense. Consequently, public prosecutors are
investigating an alleged fraud committed by Ceyoniq board members
Jurgen Brintrup and Thomas Wenzke.

Pollmann said that Wenzke had already admitted the charges. A
warrant for Brintrup's and Wenzke's arrest was issued, the papers
added.

Ceyoniq AG, formerly CE Computer Equipment AG, had applied for
insolvency proceedings at a Bielefeld-based court last Friday.
Dr. Hartmut Stange, Bielefeld represts the insolvent firm as
preliminary receiver.


FAIRCHILD DORNIER: Receives Second Funding Boost Worth US$ 90MM
---------------------------------------------------------------

Insolvent regional aircraft maker Fairchild Dornier has received
another funding boost from creditors committed to get it flying
again, BBC reported Wednesday.

The report did not state the source of the US$90 million fresh
capital intended to ensure that the company continues as a going
concern.  The boost follows the US$20 million loan extended by
the banks early this month, which was their contribution to the
US$90 million capital injection planned by the federal and state
government of Bavaria.

The first tranche of aid was pooled by HypoVereinsbank,
Bayerische Landesbank and Kreditanstalt fur Wiederaufbau, the
Troubled Company Reporter-Europe said in its April 9 issue.

The Munich-based plane-maker filed for insolvency two weeks ago.


HERLITZ AG: Core Business of Paper Company Attracts Investors
-------------------------------------------------------------

After Herlitz AG, the stationery company that filed for
insolvency two weeks ago, has drawn the interest of several
companies that may want to acquire Herlitz's core operations,
Peter Leonhardt, the company's insolvency administrator said.

According to AFX News Wednesday, two or three domestic financial
investors, as well as competitors to Herlitz, have have signified
their interest in taking over the core business, the
administrator said.

Last week, Herlitz received a bridging loan worth EUR15 millon
from a consortium of 11 creditor banks to secure the continued
operations of the business in the short term.

Meanwhile, the Financial Times Deutschland said that Herlitz
might obtain support from retail customers such as Metro and
Edeka in the search for an investor.

The Industry sector indicates that major customers hope to
maintain cooperation with the stationery manufacturer.


PREMIERE WORLD: Bertelsmann Eyes Comeback in Troubled Channel
-------------------------------------------------------------

Premiere may not be following KirchMedia to the bankruptcy court
after all.  

According Handelsblatt, media giant Bertelsmann AG is allegedly
considering a return to Premiere, the troubled KirchGruppe unit
where at one time it held a 45% stake.

The German daily says the potential investor is thinking of
taking back "less than a third" stake in the company.  Observers
say the renewed interest may be due to the "favorable price" it
expects to get with the unit now on the verge of collapse.

In addition, Premiere's 2.4 million subscribers may also be
driving Bertelsmann to return.  The paper says close customer
ties are an essential part of Bertelsmann's recipe for success,
and they have in the past proved a strong factor in helping the
group to weather difficult economic times.

In March 1999, shortly after Thomas Middelhoff took over at the
helm of the group, Bertelsmann sold its 45% stake in Premiere to
Kirch for around EUR800 million.  Until January last year, the
group still had a small stake in Premiere, but this was
eventually bought back by Kirch for EUR124 million.

Observers, however, say this is not yet a done deal.  They
believe an investment in Premiere could lead to internal
squabbles at Bertelsmann, which could scuttle this possibility.

RTL Group chief Didier Bellens told Handelsblatt that "an
investment in pay-TV in Germany has been ruled out."  RTL Group
and Bertelsmann jointly own Europe's largest television, radio,
production and sports-rights company.


KIRCHGRUPPE: No Comment on Report Kirch Will Sue Breuer
-------------------------------------------------------

KirchGruppe spokesman Hartmut Schultz has declined to comment on
a report in the magazine Capital, which states that KirchGruppe
founder Leo Kirch is preparing to sue Deutsche Bank AG's chairman
Rolf Breuer on charges of slander for making derogatory comments
about the media group's creditworthiness.

The report comes after Breuer commented at the World Economic
Forum in February, according to the AFX News, that no bank would
be agree to extend credit to the cash-strapped German media
conglomerate.

The magazine said that Kirch alleges Breuer of committing  an act
of slander for giving an unauthorized valuation of Kirch's credit
position and publishing, without authorization, the total credit
and betraying company secrets on Kirch's credit position.


PHILIP HOLZMANN: Schroeder Pleas on Creditor Banks Anew
-------------------------------------------------------

German chancellor Gerhard Schroeder said at a Dresdner Bank event
that he hopes that insolvent construction group Philipp Holzmann
AG will continue to operate business as one company, calling on
the German firm's creditor banks to save as many jobs as
possible.

The rejection of Holzman's creditor banks including Commerzbank
AG, Dresdner Bank AG, HVB Group AG of a rescue proposal presented
by Deutsche Bank AG  brought the company to petition the
Frankfurt court for insolvency.

Previously, Schroeder stepped in to rescue Holzmann in 1999,
after it filed for insolvency, via government-backed financial
guarantees to ensure the construction group's continued existence
after failed restructuring negotiations with creditors.


PREMIERE WORLD: Bertelsmann Eyes Comeback in Troubled Channel
-------------------------------------------------------------

Premiere may not be following KirchMedia to the bankruptcy court
after all.  

According Handelsblatt, media giant Bertelsmann AG is allegedly
considering a return to Premiere, the troubled KirchGruppe unit
where at one time it held a 45% stake.

The German daily says the potential investor is thinking of
taking back "less than a third" stake in the company.  Observers
say the renewed interest may be due to the "favorable price" it
expects to get with the unit now on the verge of collapse.

In addition, Premiere's 2.4 million subscribers may also be
driving Bertelsmann to return.  The paper says close customer
ties are an essential part of Bertelsmann's recipe for success,
and they have in the past proved a strong factor in helping the
group to weather difficult economic times.

In March 1999, shortly after Thomas Middelhoff took over at the
helm of the group, Bertelsmann sold its 45% stake in Premiere to
Kirch for around EUR800 million.  Until January last year, the
group still had a small stake in Premiere, but this was
eventually bought back by Kirch for EUR124 million.

Observers, however, say this is not yet a done deal.  They
believe an investment in Premiere could lead to internal
squabbles at Bertelsmann, which could scuttle this possibility.

RTL Group chief Didier Bellens told Handelsblatt that "an
investment in pay-TV in Germany has been ruled out."  RTL Group
and Bertelsmann jointly own Europe's largest television, radio,
production and sports-rights company.


RUWEL GROUP: Bayonne Employees Threaten Further Strike Action
-------------------------------------------------------------

The CGT and CFDT union representatives of Ruwel Bayonne, a French
division of German printed circuits maker Ruwel Group, have
hinted that the site's employees on strike threatened the use of
dangerous, explosive and polluting substances if their demands
are not met.

The Ruwel Bayonne employees, according to the Les Echos and FT
Information, have been on strike since the plant fell into
receivership. They have been demanding a meeting with the French
employment minister Elisabeth Guigou to plea her to step up in
search for a buyer for the beleaguered firm.

The workers, among other things, also also asking for the
equivalent of three years' salary as severance pay for those
affected by the jobcuts.

The Bayonne commercial court decided after a six-month
receivership of Ruwel Bayonne to end the company into a
liquidation proceeding, the Troubled Company Reporter Europe
reported.

With the liquidation of the manufacturing plant, the group is now
left with seven PCB factories -- six in Germany and one in
Denmark.  

The plant shutdown follows after the official receiver of the
company admitted that its parent company will not finance a re-
launch of the business.

The Bayonne plant manufacturers double-sided and multi-layer
printed circuits used in the automotive and consumer industries.

The group, with EUR220 million in turnover last year, employs 300
workers and ranked sixth on Pistes & Pastilles' list of top 20
PCB plants in France in 2001.


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


KPNQWEST NV: Brands as Speculation 'Funding Gap' Forecasts
----------------------------------------------------------

Dutch telecom operator KPNQwest NV dismisses as pure
"speculation" suggestions that it will have to implement a debt-
for-equity swap sooner or later, based on current projections.

Credit Suisse First Boston recently projected the company to
suffer a funding gap in the foreseeable future and that this will
lead the company to implement the swap, Dow Jones Newswires said.

According to the bank, which downgraded the company from buy to
sell, KPNQwest's reliance on meeting several "ambitious"
forecasts has compromised its ability to detect a nearing
financial crisis.

KPNQwest spokesman Koen van Zijl refused to comment on the bank's
projections, saying the company is currently in a "silent period"
ahead of its first-quarter report.


KPN NV: Denies 500 in Job Redundancies at German Unit E-Plus
------------------------------------------------------------

Dutch telecom group Royal KPN NV said it would cut fewer than one
hundred employees at its German mobile subsidiary, E-Plus,
denying press reports the reductions would be close to 500.

"The job reductions are a part E-Plus's move to focus on margins
instead of acquiring new clients and away from pre-paid
customers... There will be no forced layoffs," Reuters, citing a
KPN spokesman, said.

E-Plus, Germany's third-largest mobile phone operator, employs
some 4,200 workers at present. The group also denies earlier
rumors of talks of a sale of its German unit, a report on Die
Welt and Financial Information said.


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

ELEKTRIM SA: Notice Shareholders Representation at EGM
------------------------------------------------------

The Management Board of Polish energy and telecom conglomerate
Elektrim S.A. announced that, during its Extraordinary Meeting of
Shareholders of Elektrim S.A. on April 10, 2002, the shareholders
present representing a total of 55.85% of the company's share
capital were as follows:

1. BRE Bank S.A. (Poland)  12,687,628 shares and 12,687,628 of
the total number of votes at the EMS,

2. Opara Ryszard (Poland) 7,998,466 shares and 7,998,466 of the
total number of votes at the EMS,

3. Jakubas Zbigniew (Poland) 4,639,803 shares and 4,639,803 of
the total number of votes at the EMS,

4. Merging Markets Development S.A. (Luxemburg)  4,179,933 shares
and 4,179,933 of the total number of votes at the EMS,

5. Vivendi Universal S.A. (France) 4,079,683 shares and 4,079,683
of the total number of votes at the EMS,

On April 12, 2002, after a break in the EMS shareholders that
represented a total of 50.46% of the company's share capital were
present at the Meeting, the list of shareholders that held over
5% of the total number of votes at the Meeting did not change.


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


SWISSAIR GROUP: Nuance Group to Be Sold to Italian Gruppo PAM
-------------------------------------------------------------

Collapsed airline Swissair Group AG said Wednesday it has sold
its travel retail subsidiary Nuance Group to Italian retail
distribution company Gruppo PAM SpA for an undisclosed amount.

Swissair, according to the Dow Jones Newswires, said the deal is
expected to be concluded by the second quarter of this year.

The negotiations will also includes a call option for Italian
clothing retailer Stefanel S.p.A to acquire up to 50% stake of
Nuance.

The Swissair Group filed for bankruptcy protection in October
last year after the comppany's failed expansion strategies and
after the U.S. terrorist attacks.

Two thirds of the Swissair Group's former fleet has now been
incorporated as Switzerland's new flag carrier Swiss.

Gruppo PAM, with a workforce of 10,600, recorded EUR2.1 billion
in turnover in the end of year 2000.  


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


ARTHUR ANDERSEN: Client Defections Force Firm to Cut 1,500 Jobs
---------------------------------------------------------------

Some 1,500 employees of Andersen U.K. will lose their jobs as the
company tries to counterbalance the effects of client defection
that has struck it in recent weeks, reports the Financial Times.

"The combination of difficult economic conditions and the effects
of the Enron situation means the U.K. firm is not achieving the
levels of business activity on which our headcount is based,"
U.K. managing partner John Ormerod told the paper.

The report says client defections have now plagued the U.K.
office.  There have been three U.K.-based audit clients that have
already ditched the firm since it was accused of participating in
the shredding of Enron documents.  

The paper says Stagecoach, the bus and train operator, dropped
Andersen because it no longer believed the firm could serve it on
a global basis. Mayflower, the engineering group and Amvescap,
the Anglo-U.S. fund manager, have also replaced Andersen with
other auditors. Henly's, the bus and coachbuilder, is also
expected to do the same within six weeks, the paper says.

The firm says the redundancies would be spread across all areas
of its business excluding Andersen Legal, its law practice.  The
group recently announced its merger with Deloitte & Touche, but
this development is not keeping clients from mulling a change.


ARTHUR ANDERSEN: Ernst & Young Spoils KPMG Merger This October
--------------------------------------------------------------

Ernst & Young has beaten KPMG once more to Andersen's foreign
affiliates, this time involving the Switzerland practice, the
Associated Press said Wednesday.

Some 2,500 employees in the Switzerland office will now get their
pay from Ernst & Young.  The combined group is expected to have
an annual turnover of US$314 million, allowing Ernst & Young to
seriously challenge PricewaterhouseCoopers to the No. 1 seed in
the country.  The combination is still subject to regulatory
approval.

The tie-up with Ernst & Young nixed the previously announced
merger with KPMG this October.  


CLUBHAUS PLC: DTI Grants Shareholders Request to Probe Management
-----------------------------------------------------------------

Clubhaus shareholders opposed to the planned debt-for-equity
solution to the company's woes won big time this week as the
department of trade and industry acceded to their call for a
probe on key officials.

The golf course operator confirmed Wednesday that it had received
a notification that the trade and industry department will open
an investigation on the company.

The probe is a victory for Eddy Shah, who led shareholders in
opposing the restructuring backed by the management of Robert
Bourne, The Times says.  

Mr. Shah has accused Mr. Bourne and the rest of the board of
"running the company into the ground" and has questioned the role
of Deloitte & Touche, its auditor, in the sudden reversal in its
fortunes.

Last year following the foot-and-mouth outbreak and the September
11 terror attacks, the company issued a series of profit warnings
and in November the group announced a GBP75 million write-down in
the value of its property assets.

Mr. Shah opposed the debt-for-equity exchange because he wanted
the firm to be divided equally between the bondholders and
shareholders.  Had the swap pushed through, the bondholders would
have ended up controlling 80% of the company in exchange for
forgiving all but GBP15 million of the GBP63.9 million owed to
them.

The department has refused to explain the nature or state the
scope of its investigation, says the paper.  However, in its
notice to the company, it cited section 447 of the Companies Act
1985.  This law compels companies to produce records, failing
which investigators can use a warrant to seize papers, the report
says.


ENERGIS PLC: To Use up GBP 700MM of Bank Credits by May
-------------------------------------------------------

Energis could be saddled with GBP700 million in bank debts by end
of May if it finds no buyer soon, says the Financial Times.

The paper learned recently that creditor banks allowed the
company last month to withdraw GBP35 million to fund operations
pending negotiations with buyers and creditors.  Accordingly,
they're even close to agreeing the release of further funds.

In January when the company first announced that it was in danger
of breaching banking covenants, the company disclosed that it had
already used up about GBP600 million of the GBP725 million credit
facility established with banks.

It was thought then that the banks and the company had agreed to
freeze the facility.  With the decision to open the line once
more, some observers say Energis could end up using between
GBP675 million and GBP700 million of the money by end of May.

"The banks have no choice but to continue funding the business
until they find a buyer. How many alternative telecoms assets
have yielded any value out of insolvency? Virtually zippo," an
observer told the Financial Times.

The company plans to sell its core UK business to any interested
buyer who would be willing to cough up GBP1 billion.  Dresdner
Kleinwort Wasserstein and Goldman Sachs have so far drawn up a
shortlist of buyers that include Apax Partners, Permira, Spectrum
Equity Partners, Blackstone Group and Credit Suisse First Boston
Private Equity.

While sale talks are ongoing, it is believed that bondholders are
holding separate discussions with management for a possible debt-
for-equity swap.  Credit Suisse First Boston is thought to be
leading this group.


INTERX PLC: Proposed Sale of Software, Other Property
-----------------------------------------------------

The Board of internet software group InterX announces that and
its internet software subsidiary, ITL, has reached agreement for
the sale to The Innovation Group plc of all intellectual property
relating to ITL's business, including the BladeRunner, InterX
Net2020 and Wrapper software.

Certain other assets, including the sales pipeline, required for
the business of ITL to be acquired by TiG as a going concern,
will also be sold by ITL, with the relevant staff being
transferred.

The transaction, in accordance with the requirements of the
Listing Rules of the UK Listing Authority, is conditional upon
shareholder approval and certain other conditions.

Accordingly, a circular will be sent to all shareholders in due
course in order to provide shareholders with information
regarding the sale and to seek their approval for the Sale at an
extraordinary general meeting. Irrevocable undertakings to
approve the transaction have already been received from 50.89%.
of InterX shareholders.

Initial consideration, before transaction costs, will be payable
by TiG in cash to InterX and ITL of GBP300,000 and GBP1 million
respectively.

Deferred consideration of up to GBP7 million may become payable
to ITL by TiG, to be satisfied in either cash or TiG shares, at
TiG's option. The amount of the deferred consideration payable
will be calculated as a multiple of the value of licence revenues
from the ITL IPR achieved by TiG in the two year period from
April 17, 2002.

The multiple to be applied in the first year will be 3 and in the
second year, 2. Of this deferred consideration, GBP4 million is
guaranteed, irrespective of the level of license revenues, and is
payable in equal instalments on April 1, 2003, October 1, 2003,
April 1, 2004 and October 1, 2004.

The ITL IPR includes the right to the use of the name InterX.
Accordingly, ITL will change its name upon completion of the
transaction and InterX will change its name by October 31, 2002
to names not incorporating the word "InterX" or the initials
"ITL". Upon InterX changing its name, any remaining rights of
InterX to the InterX name will also be assigned to TiG.

InterX and TiG will enter into an option agreement whereby TiG is
granted an option to subscribe for 1.5 million new InterX shares
at an exercise price of 6p per share and acquires the right to
appoint a non-executive director to the Board of InterX. The
option will lapse on June 30, 2004.

As at December 31, 2001, the net assets the subject of the
transaction were valued at GBPnil, although goodwill attributable
to the software business was valued at GBP10 million; this will
be written off to the profit and loss account. Revenues and net
losses attributable to these net assets in the six months ended
December 31, 2001 were GBP976,000 (11 months ended June 30, 2001:
GBP5.8 million) and GBP6.6 million (11 months ended June 30,
2001: GBP25.3 million) respectively.

Currently, the ITL IPR is the sole source of revenue for the
Group, apart from management charges to the Company's remaining
investments.

The initial consideration of GBP1.3 million from the transaction
will reduce to approximately GBP530,000, after accounting for
professional fees associated with the transaction and other
matters.

As of March 31, 2002, assuming completion of the transaction had
taken place and after payment of the professional fees referred
to above, the Group would have had aggregate cash reserves of
approximately GBP3.8 million.

The Group currently has outstanding net creditors of GBP1.9
million and will, after completion of the transaction, have
future monthly operating costs, including property related costs,
of approximately GBP300,000 per month. In order to increase the
Company's available cash reserves the Board continues actively to
market the Company's head office in Brentford, upon which there
is a GBP5.4 million rent deposit.

Diligenti remains in breach of the terms of the InterX loan
agreement, which was due for repayment on 31 December 2001. GBP18
million remains due to InterX under this loan agreement.

Diligenti's creditors and shareholders approved proposals for a
company voluntary arrangement on March 11, 2002. Approximately
GBP0.8 million is required to fund the CVA and the Board is
currently assessing how this should be funded.

Subject to completing the funding of the CVA, InterX has options
to increase its shareholding in Diligenti to approximately 95%.
InterX believes that Diligenti has the potential to offer
shareholders value in the future. The Board will provide more
information concerning Diligenti in the Circular.

The Board's strategy is to realize the value of the company's
assets for the benefit of shareholders.

The current financial vulnerability of the Group has irreparably
damaged ITL's credibility as a viable enterprise software vendor
and has accordingly impacted ITL's ability to convert its sales
prospects into revenue. It is the opinion of the Board that the
transaction represents the best option for shareholders with
regards to realising value from ITL's software and related
business assets.

The Board continues to work towards realizing value from the
InterX Group's other assets and will update shareholders further
in the Circular, which will include the results for the quarter
ending March 31, 2002 and an update on the working capital
position of the InterX Group.

For Press Relations inquiries, contact:
Isabelle Duarte
Phone: +44 (0)20 8817 4115

Email: iduarte@interx.com    

For Investor Relations inquiries, contact:
Paul Carter
Phone: +44 (0)20 8817 4201
Email: pcarter@interx.com    


INTERX PLC: Q2 Ending Dec. 30, 2001 Reveal GBP 153.1MM Loss
-----------------------------------------------------------

UK's internet software developer InterX plc on its Dec 30, 2001
second quarter Financial reports posted GBP 153.1 million in
losses, a further loss as compared toGBP14.4 million in the first
quarter.

Turnover was GBP0.5 million (Q1 2002: GBP0.5 million), while
gross profit stood at GBP0.4 million (Q1 2002: GBP0.1 million).
The company recorded an operating loss, before restructuring
charges, amortization and impairment of goodwill of GBP3.5
million (Q1 2002: GBP3.7 million).

The company's Q2 figures were highlighted by a restructuring cost
of GBP10.2 million and amortization of goodwill by GBP10.2
million (Q1 2002: GBP10.2 million). Impairment of goodwill
charges totaled GBP122.7 million while anticipated restructuring
provision for Q3 is expected to be total GBP1.5 million.

InterX's Q2 share of associates' operating losses was GBP5.4
million (Q1 2002: GBP1.4 million), while the company's loss per
share, before exceptional items, amortization and impairment of
goodwill was 31.98p (Q1 2002: 14.76p). A widened loss per share
in Q2 was 489.62p compared with Q1 2002 at 45.91p.

Cash at December 30, 2001 was GBP6.2 million (September 30, 2001:
GBP10.1 million).

Simon Barker, Chief Executive, commented:

"Q2 has seen an encouraging increase in active interest in InterX
Net2020 from prospective customers and industry analysts.

However, given the lack of success in converting this interest
into firm sales orders and our current cash position, the current
level of investment in building a brand and sales channel in the
current market conditions cannot be justified.

The shape of the software business moving forward will be
determined after the conclusion of our discussions with potential
partners and the completion of the consultation process with our
employees

The future position and value of Diligenti to InterX will be
determined through the success of the current restructuring of
Diligenti.

We will report back to shareholders once these actions have been
concluded."

Contact Information:

Simon Barker, Chief Executive
Simon Miesegaes, Finance Director
InterX plc
Phone: 020 8817 4000


ITV DIGITAL: Tips Towards Liquidation as It Withdraws Offer
-----------------------------------------------------------

Is ITV Digital opting for liquidation?  It seems so, says
Independent Digital as it learned Wednesday that the channel had
faxed the Football League a statement withdrawing all previous
offers.

The move came a day before the League was to meet representatives
of the 72 clubs under its wings to vote whether or not to accept
the GBP74 million "final" offer of the channel.

"The fax effectively said that there were no offers on the
table," described a League spokesman of the statement.

Early this week, the broadcaster received a week's extension to
try to come to terms with the Football League, which lately said
it was willing to accept GBP100 million of the GBP178.5 million
the channel still owes it.

The paper says, with the latest move, the digital TV could now go
into liquidation within days.  If that happens, the League is
likely to press ahead with its threat to sue ITV Digital's co-
owners, Carlton and Granada, for GBP500 million.

The League claims the media giants are legally liable for ITV
Digital's debts. Carlton and Granada have repeatedly insisted
this is not the case.


MARCONI PLC: Job Cuts Rumored Ahead of Results Announcement
-----------------------------------------------------------

Marconi Plc is rumored to unveil another round of redundancies
involving 1,000 positions.  Union sources told The Guardian
Wednesday that the plan is contained in the full-year results of
the company to be released next week.

The company has already cut 14,000 jobs in the past year, 4,000
of which were based in the U.K.  Workers warn that if the job
losses were heavy, they might be forced to strike.

"It's getting to the point now where compulsory redundancies are
looking more likely.  If the results are as bad as people
predict, job losses could be high but we won't go down without a
fight," a union insider told The Guardian.

Meanwhile, at a meting with members of parliament in Liverpool
recently, Marconi workers urged the government to reinvest some
of the GBP30 billion it made from the sale of 3G licenses in the
telecoms industry.


NTL INCORPORATED: France Telecom Hopes to Recover EUR 1.8BB
-----------------------------------------------------------

France Telecom said it expects to recover, in the long term,
about 1.8 billion outstanding exposure to NTL by exercising the
22.49% of warrants it will hold upon the company's re-listing.

Jean Louis Vinciguerra, France telecom's chief financial officer
said at a conference call, the French company will be held
exclusively in NTL UK and Ireland, corresponding to the company's
original investment.

Vinciguerra said a relisted NTL would have a theoretical market
capitalization of EUR5-6 billion, after an overall reduction in
its debt of 17 billion.

The recapitalization consists of a US$10.6 debt-for-equity swap
through bondholders, with 5.7 billion returned to France Telecom,
including the warrants and the 27% stake in cable-operator, Noos.

He said, "We are exchanging our preferred shares for these
warrants", adding that the rights could be sold in the stock
market in Sept and October.

NTL, according to the chief, is likely to relist by September,
pending discussions between bondholders and the U.S. bankruptcy
judge.

                                    ***********

        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-
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
Larri-Nil Veloso and Maria Lourdes Reyes, Editors.

Copyright 2001.  All rights reserved.  ISSN 1529-2754.

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