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        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, May 08, 2002, Vol. 3, No. 90


                            Headlines

* C Z E C H   R E P U B L I C *

NOVA HUT: WB Unit to Force Bankruptcy If Sale Delayed Further

* G E R M A N Y *

BROKAT AG: Cambista to Take Over Customers, Rights
CONSORS AG: Reduces Loss in Q1 2002 Despite Drop in Activity
DEUTSCHE TELEKOM: To Pay Higher Interest If Bond Issue Goes Ahead
FAIRCHILD DORNIER: Bombardier Reconsiders Stand Against Bidding
GONTARD & METALLBANK: Regulator Orders Temporary Shut-down
GONTARD & METALLBANK: Restructuring and Strategic Realignment
ISH: Cable-TV Operator Doesn't Have EUR50 Million to Pay Bonds
KIRCHGRUPPE: Race to Get 40% Stake in Springer Down to Two Banks
KIRCHMEDIA: Sports Channel to Cut Jobs Prior to Sale, Says Report
RBG: WestLB Stands to Lose US$200 MM in Metal Group's Collapse

* I R E L A N D *

EIRCOM PLC: Lobbies Against EUR 300MM Telecom Investment
EIRCOM PLC: VNU NV to Buy Eircom's 63% Stake in Golden Pages

* I T A L Y *

FIAT SPA: Auto Unit's Market Share in Italy Sinks 13% in April

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

KPNQWEST: Refuses to Comment on Rumors to File for Insolvency

* P O L A N D *

DAEWOO MOTOR: Nysa Factory Workers Demand State Intervention
ELEKTRIM SA: Files Complaint Against Court to Cut Proceedings
ELEKTRIM SA: Investment Deal in Former Internet Unit Held up
NETIA HOLDINGS: Reports 2002 First Quarter Results
STOCZNIA SZCZECINSKA: Banks Urge Board Shakeup in Return for Aid

* S P A I N *

UNION FENOSA: Soluziona Subsidiary Wins Contract From Enel

* S W E D E N *

FRAMFAB AB: Consultancy Group Expands www.nikefootball.com
FRAMFAB AB: Changes in the Framfab Management Team

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

SULZER MEDICA: Approval of Spine Treatment Boosts Market Outlook

* U N I T E D   K I N G D O M *

BRITISH TELECOM: Break-up of Broadband Unit From Network Urged
BRITISH TELECOM: Rated "Strong Sell" Due to Poor Performance
NTL INCORPORATED: Knapp to Revive Merger Talks With Telewest
NTL INCORPORATED: Launches U.K.'s First In-premises IP Product
PACE MICRO: Announces the Pace 550 HD to Cable Operators
PACE MICRO: Partners With Philips on Digital TV Development
TELEWEST COMMUNICATIONS: Malone Positions Liberty for Takeover


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


NOVA HUT: WB Unit to Force Bankruptcy If Sale Delayed Further
-------------------------------------------------------------

The delay in the sale of debt-laden steel firm Nova Hut has
prompted the International Finance Corporation to threaten the
Czech government of bankruptcy proceedings against the firm.

The World Bank subsidiary has been egging the government to sell
the troubled steel-maker to Dutch group LNM or to another bidder.
So far, the state has dilly-dallied on the plan, the Prague
Business Journal said.

Nova Hut a.s. was established in 1951 as a state enterprise and
become publicly held in 1997. The company operates through nine
plants. The company is involved in the manufacture of steel and
its by-products as well as coke and its by-products. Its share of
sales of coke accounted for 99.99% of the Czech market in 1999,
rolled steel, 42.01% and tubes 39.22%.

In 1999, Nova Hut produced 2,430,481 tons of crude steel
(1,497,683 tons on three continuous casting machines), 1,312,520
tons of coke, 2,070,874 tons of rolled steel, 210,660 tons of
tubes, 44,559 tons of steel mines support, 30,283 tons of black
steel guard rails and 5,975 tons of zinc coated steel guard.

The company main products are: simple section bars, shaped bars,
reinforcing bars and steel, hot rolled wire rods, flat products,
seamless tubes and pipes, oil country tubular goods, plain-end
spiral weld pipes, cold rolled steel products, castes (grey cast
iron, steel and nodular iron), steel guard rails, steel mining
supports, engineering products, coke, coal tar, benzol, ammonium
sulphate, sodium phenoxide and technical-grade coke-oven gas.

Nova Hut has quality certificates from RWTUV, Lloyd, Munich
Technical University, ZETOM and API Mono. The company exports its
products mainly to Europe.


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


BROKAT AG: Cambista to Take Over Customers, Rights
--------------------------------------------------

Brokat AG has reached an agreement to sell its successful EMEA e-
finance business to Cambista Technologies, the financial software
and services provider established by the management of Brokat in
the U.S., U.K., Middle East and Nordic region.

The agreement involves the acquisition of the majority interest
in Brokat's business infrastructures, intellectual property
rights to a range of banking software application outside Germany
and Central Europe.  The deal also includes the transfer of
Brokat's customer base composed of 20 banks across Europe and the
Middle East to Cambista's account.

Cambista is offering a range of applications from retail banking
to high-end corporate cash management. These applications will be
offered on a 100 percent Java business platform known as the
Cambista Financial Framework, news outfit Al-Bawaba says.

Venture capital firm Favonius Ventures is backing Cambista with
an investment of EUR5.1 million.  The cash injection from
Favonius is also supplemented by private funding from members of
the management team.


CONSORS AG: Reduces Loss in Q1 2002 Despite Drop in Activity
------------------------------------------------------------

Consors Discount-Broker AG, in a statement released Tuesday said
the the online banking firm remained influenced by persistently
weak stock markets in first quarter 2002, but managed to lessen
the quarter's loss despite strongly reduced net commission
income.

The number of  trades dropped by roughly 43% in a year-ago
comparison to 1.4 million, and net commission income decreased
correspondingly to EUR23.4 million, approximately 44% less than
EUR42.1 million in the same period 2001.

The gratifying development of fourth quarter 2001 failed to
result in the consistently livelier capital markets hoped for.
Total operating income amounted to EUR 34.3 million after EUR56.4
million in the comparable period last year.

However, the results of our Fit for Future cost cutting and
efficiency enhancement program introduced early in 2001 are now
becoming increasingly effective and compen-sated this decrease to
a considerable extent.

Expenses were clearly reduced by 35% from EUR80.6 million to
EUR52.6 million.

Besides a decline of 19% in personnel expenses to EUR 18.9
million, this decrease is particularly the result of costs for
external services down by 44% to EUR10.7 million and a cut of 80%
in marketing expenses that were reduced to EUR 2.3 million to
adapt to the poor market environment.

The quarterly result after taxes and minority interests was -
EUR13.5 million and is 13% or roughly EUR2 million, less than the
loss of -EUR15.6 million posted in the comparable period last
year.

The loss per share also decreased in the period under review to
-EUR0.28 after -EUR0.33 in the comparable quarter 2001.

Consors also reported Tuesday another net gain of 6,000 new
customers in first quarter 2002. This brings the total of
customers across the Consors Group as at March 31, 2002 to around
572,000, of which 506,000 accounts are held in Germany, and is 6%
over the comparable prior year's figure.

The value of assets under custody, including external deposits,
rose during first quarter 2002 across the Group to around EUR 7.2
billion, slightly above the year-end figure.

This value is 12% under approximately EUR 8.2 billion at the same
date 2001.

The Consors Funds Market, however, again showed positive
development with 26 percent growth over the comparable prior
year's value to reach a funds volume of now EUR1.1 billion.

The number of investment fund savings schemes increased from
about 101,000 in the preceding year's quarter to some 144,000 as
at 31 March 2002.

On April 29, 2002, BNP Paribas acquired the 66.4% equity stake
held by SchmidtBank. The merger of Cortal, the online broker of
BNP Paribas and Consors gives birth to the new European Number 1
with around 1.2 million customers.

Our customers will benefit in future from the complimentary
strengths of both companies in online brokerage and asset
management.

The joint management of the new enterprise CortalConsors will be
announced in the coming weeks and various working groups will
address the integration process to pave the way for successful
realization of the targeted synergies as soon as possible.

The combination of both companies aim to unite profitability and
growth and shape an enterprise that not only creates value in
times of lackluster stock markets, but also profits above average
when the markets revive.

Consors Group at a glance in first quarter 2002

Key figures                          31.03.02  31.03.01  31.12.01
Accounts (units)                     571,549   539,842    565,701
Trades (units in thousands)            1,394     2,468      7,406
Assets under custody  in EUR (MM)      7,207     8,165      7,173
of these Securities                    4,815     5,696      4,760
of these Funds                         1,121       886      1,052
of these Cash deposits                 1,271     1,583      1,361


DEUTSCHE TELEKOM: To Pay Higher Interest If Bond Issue Goes Ahead
-----------------------------------------------------------------

Analysts are expecting Deutsche Telekom AG to pay higher-than-
expected interest on its bonds due to the escalating risk
premiums on telecom bonds.

German daily Handelsblatt says many analysts believe the timing
of the company's EUR5 billion to EUR8 billion bond issue is not
ideal.  They point out that the outlook in the telecom sector has
deteriorated the past few weeks and impacted heavily by financial
difficulties of U.S. telecom giant Worldcom.

At the moment, lead managers Deutsche Bank, Schroder Salomon
Smith Barney and JP Morgan Chase are seeing little appetite from
bond investors, says Handelsblatt.

Peter Varga, fund manager at Union Investment, sees Deutsche
Telekom paying an additional EUR80 million a year on interest at
the prevailing market condition. He believes the company will
postpone the issue.

The company plans to use the proceeds to refinance old
liabilities due 2003. The group's debt currently totals EUR67
billion.  The firm's next presentation stop will be in the United
States, which will be completed by the end of next week.  The
German incumbent is expected to decide on the exact conditions
and the volume of the issue after this stop, says the paper.


FAIRCHILD DORNIER: Bombardier Reconsiders Stand Against Bidding
---------------------------------------------------------------

World's biggest regional plane-maker Bombardier Inc. of Canada
hinted during a recent aerospace fair in Berlin that it might
invest in Fairchild Dornier, reports Handelsblatt.

"We are watching the situation at Fairchild Dornier with great
interest - just like other competitors," John Paul McDonald, head
of communications at Bombardier Aerospace, told the German daily
during an interview at the fair.

Until recently, the Canadian rival has categorically denied it is
considering a bid for the German counterpart.  But Mr. McDonald
said this is not the case now.

"The situation has changed, that's all we can say at this point
in time. We don't participate in speculation," Mr. McDonald said.

Meanwhile, people close to the insolvent company told the paper
that a crucial decision will be made before the end of the week
regarding its future.  The uncertainty over where the plane-maker
is heading has made important engineers reconsider their loyalty
to the company.

At the moment, the only clear fact is that the company only has a
cash horde that will last it until the end of June.  Losing
engineers and failing to get a major backer will spoil the launch
of its new 70-seater regional jet, which is widely regarded in
the industry to be technically superior to those of its rival.


GONTARD & METALLBANK: Regulator Orders Temporary Shut-down
----------------------------------------------------------

The German Federal Financial Services Supervisory Authority
(BAFin) on Monday orders the temporary halt of Gontard &
MetallBank AG http://www.Gontard-MetallBank.deactivities.

The German regulator's move comes after an ad-hoc disclosure
published on May 3, 2002, in which Gontard & MetallBank AG had
announced that it would issue a notice of losses amounting to 50%
of the issued share capital.

The BAFin issued a temporary ban on sales and payments by the
bank, ordered the bank to be temporarily closed for business with
customers, and prohibited the bank from accepting payments not
intended for the discharge of debts owed to it.

These measures are designed to allow Gontard & MetallBank AG to
continue the restructuring process it has embarked upon.

Gontard & MetallBank AG is a member of the Joint Fund for
Securing Customer Deposits (Einlagensicherungsfonds) operated by
the Association of German Banks, and of the German Banks
Compensation Fund (Entschadigungseinrichtung deutscher Banken
GmbH).

Together, these institutions protect deposits up to an aggregate
amount of EUR 12.09 million per depositor.

Contact Information:
Patrick Kiss
Investor Relations
Gontard & MetallBank AG
Telephone: +49 (69) 71908-206
E-mail: info@gmag.de


GONTARD & METALLBANK: Restructuring and Strategic Realignment
-------------------------------------------------------------

Based on an ad-hoc disclosure published on April 19, 2002,
Frankfurt-based Gontard & MetallBank AG had announced additional
provisioning requirements of approximately EUR 25 million.

As a result of subsequent, additional price diminutions affecting
the securities pledged to collateralise loans, losses have
exceeded 50% of the issued share capital of Gontard & MetallBank
AG.

Pursuant to section 92 (1) of the German Stock Corporation Act
(Aktiengesetz), the Board of Managing Directors will therefore
convene a General Meeting of Shareholders in June 2002. The
invitation to the Meeting will be published as soon as the agenda
has been determined.

To accurately reflect the company's financial situation, the
results for the quarter ended on March 31, 2002 have been
adjusted to include the additional impairment of collateral, as
well as the diminution in the value of certain securities during
April.

On this basis, the result before taxes (according to IAS) for the
first two quarters of the business year 2001/2002 (October 1,
2000 to March 31, 2002) was a loss of EUR 44.8 million (including
EUR 39.7 million in loan loss provisions), compared to a EUR 0.6
million profit for the same period of the previous business year.

The operative result was a loss of EUR 9.2 million (1st half of
2000/2001: EUR 2.1 million profit).

The Board of Managing Directors will submit a detailed concept
for the restructuring and strategic realignment of the bank
during the Extraordinary General Meeting to be convened.


ISH: Cable-TV Operator Doesn't Have EUR50 Million to Pay Bonds
--------------------------------------------------------------

Cable-TV operator Ish, which is owned by US-based Callahan
Associates International, is reportedly courting disaster with a
funding gap of about EUR50 million, which it needs to pay bond
interest.

According to Handelsblatt, investors are now thinking of cutting
credit lines as the company has shown little progress since
taking over Deutsche Telekom's license to operate cable-TV
networks in the states of North Rhine-Westphalia and Baden-
Wurttemberg.

Analysts say the company's subscribers only number between 3,000
and 5,000, not enough to realize its business plan.  The
company's problem stems from its lack of access to the "last
mile" connection of two thirds of the four million households
connected to its network, the paper says.

The last mile is that loop in the telephone network that connects
users to local exchanges.  It is pre-requisite for offering
services such as broadband Internet.

Accordingly, the company has had little success in negotiating
with the owners of the last mile connections, mostly smaller
cable network operators or property companies.  As a result,
network development has been delayed significantly, making it
more difficult for Ish to win new customers.

In addition, the company's decision to increase prices has also
upset existing customers, causing a wave of cancellations.  Over
the past few weeks alone, some 120,000 households cancelled their
cable connections with Ish, switching to satellite services
instead.

"Ish's strategy was too aggressive; the company has overstrained
itself," JP Morgan analyst Galia Velimoukhametova told the German
daily.

If no fresh funding will be made available, Ish will be forced to
file for insolvency because of its excessive debt burden, she
said.

At the end of 2001, Ish's reported debts of more than EUR3
billion.  Every year, the company accumulates about EUR300
million in interest bills.  The company reported pretax losses of
EUR527 million last year on sales of only EUR388 million.

The company has already announced that it will cut a quarter of
its 2,400 workforce and slow down network development.


KIRCHGRUPPE: Race to Get 40% Stake in Springer Down to Two Banks
----------------------------------------------------------------

It's now down to two banks the race to get the 40% stake of
KirchGruppe in German publisher Axel Springer, says the Financial
Times.

The paper says the publisher has rejected offers from foreign
private equity firms, the recent of which tendered by BC
Partners.  The latest offer amounted EUR1 billion, but the equity
firm had also wanted to take the company off the market,
restructure its operations and re-float it within five to eight
years.

Springer CEO Mathias Dopfner is said to have balked at the plan
to open the publisher's books for a due diligence that will take
three months to complete.  In addition, the firm's largest
shareholder Friede Springer was also opposed to a public-to-
private deal.

"Springer does not need to go private, it needs to raise its
free-float, which is what [Kirch's creditor] banks are offering,"
one person close to Mr. Springer told the Financial Times.

At least three private equity firms are believed to have tendered
for the prized stakes, which allegedly included the Blackstone
Group.

The two banks that will either take home the bacon are Deutsche
Bank and Commerzbank, which recently formed a consortium to raise
as much as EUR1 billion for the offer.

Deutsche Bank currently holds the stake as collateral to a EUR615
million loan that fell due last April 12.  The bank has the right
to seize the shares at the end of the week if Kirch fails to
repay the loan.

Commerzbank, on the other hand, is still in talks with partners
to jointly bid for the stake.  The paper, however, says Dresdner
Bank, Bayerische Landesbank, Lehman Brothers and JP Morgan Chase
are still reluctant to be part of the consortium because they
find the price excessive.

Many believe, though, that Bayerische Landesbank, JP Morgan and
Lehman Brothers will eventually relent and block Deutsche Bank's
impending seizure of the stakes.  The three have a secondary lien
on the stake as collateral for their respective loans and they
fear Deutsche Bank would only try to cover its own loan if it
auctioned the shares, the paper says.

KirchBeteiligung, the German media empire's investment arm, is
the official seller of the stakes, but Springer retains influence
over who should take hold of the stake due to its veto power.
Springer can block the transfer of voting rights under its
agreement with KirchGruppe, the paper says.


KIRCHMEDIA: Sports Channel to Cut Jobs Prior to Sale, Says Report
-----------------------------------------------------------------

DSF, the sports channel of insolvent KirchMedia, will allegedly
cut a quarter of its workforce and reduce costs in production and
studio equipment to stave-off insolvency, says Bloomberg.

Citing a report by Handelsblatt, Bloomberg said some 112
employment contracts will not be renewed or cancelled in the
second half.  The plan was recently announced by DSF CEO Stefan
Ziffzer, the German daily said.  The company employs about 400
staff.

The lay-off is expected to cut the losses of the channel.  In the
first-half of the year, the company was forecast to absorb some
EUR15 million in losses, Handelsblatt said.

The paper said the channel is up for sale to help pay the debts
of Kirch Holding GmbH, the parent of KirchMedia, which in turn
owns the channel.  Kirch Holdings has US$5.7 billion in debts.


RBG: WestLB Stands to Lose US$200 MM in Metal Group's Collapse
--------------------------------------------------------------

Metals group RBG was forced into liquidation by Westdeutsche
Landesbank Friday on mounting concern about its accounting
practices, now a subject of an investigation by the Serious Fraud
Office.

The bank, also known as WestLB, has a US$200 million exposure in
the group, making it the single biggest lender of RBG.  This loan
represents money owed by customers of the firm's worldwide
mining, smelting and metal distribution empire.  A syndicate of
other banks also pitched in US$100 million to the pot.

In March, PricewaterhouseCoopers cut its tie with the group as
auditor, citing concern over the company's accounts. This
prompted WestLB to launch its own inquiry, which led to
accountancy firm Grant Thornton's appointment as provisional
liquidator last week, This is London said.

The report says the Serious Fraud Office has already mounted a
full-blown probe into allegations of false accounting.
Accordingly, Peter Kiernan, a veteran of the Polly Peck and
Barings Bank investigations, is heading the probe.

RBG CEO Viren Rastogi is the group's majority shareholder.


=============
I R E L A N D
=============


EIRCOM PLC: Lobbies Against EUR 300MM Telecom Investment
--------------------------------------------------------

The Irish government's plan to invest EUR300 million in the
telecom market over the next three years is strongly by Eircom
Plc, the country's restructuring telecom incumbent.

In a lobby document obtained by the Irish Times recently, the
company criticized the policy direction of the government, saying
the supply-side intervention it is planning will not be good for
the sector in the long run.  The company, instead, suggested
stimulation of demand for communications services.

According to Eircom, capital investment in telecoms
infrastructure presents a real danger of creating "stranded
assets" that would not be remunerated.  It argues that State
intervention would dilute the business case for future investment
and is a retrograde step.

"Such intervention may, on the one hand, lead to retrenchment of
planned investment by operators in anticipation of open and non-
discriminatory access to public infrastructure or, on the other
hand, to over supply and therefore inadequate return on network
investment in certain areas of the network," the lobby document
stated.

As an example to the danger of state intervention, the company
cited the government's tie-up with now-bankrupt Global Crossing
in 1999.  This project cost EUR62 million and aimed to partly
finance the provision of international connectivity to companies
in Ireland to keep prices cheap, and therefore attract and retain
international foreign direct investment.

Eircom describes the Global Crossing deal as an example of well-
intentioned Government intervention that proved to be counter-
productive and has had a negative impact on consumer value, the
paper said.

"The international bandwidth market has always been the most
competitive part of the telecommunications sector and market
prices have declined sharply as over-supply has been reached.
Bandwidth from Ireland to the UK and US is now at commodity
prices but Ireland is locked into very expensive bandwidth supply
agreements with Global Crossing," says the document.


EIRCOM PLC: VNU NV to Buy Eircom's 63% Stake in Golden Pages
------------------------------------------------------------

Eircom today announced that following discussions between VNU and
eircom, VNU (a leading international media and information
company) is to take over Eircom's s 63% control in Golden Pages.

VNU currently has a 37% interest in Golden Pages. The transaction
involves a consideration of EUR185 million.

The significant business relationship between eircom and Golden
Pages, which includes production of the "Phone Book" and the
directory service "Golden Pages Talking", will continue to exist.

Commenting on the transaction Eircom's chief executive Phil Nolan
said Eircom's decision to exit Golden Pages reflects our strategy
to focus on the core fixed line business.

It follows very constructive discussions with VNU nv and also
reflects their business objective of increasing ownership and
control of publishing companies which they do not wholly own.

In my view the outcome is very positive for both companies. The
transaction has been submitted for approval to the relevant Irish
Authorities.

For more information, contact:

Majella Fitzpatrick
Public Relations Manager
Tel: 00 353 1 701 5483
Fax: 00 353 1 4758734
Mobile: 00 353 87 257 2572
email: mfitzpatrick@eircom.ie

Gerry O'Sullivan, Director
Group Corporate Relations
St Stephen's Green West
Dublin 2, Ireland
Tel: + 353 1 701 5632
Fax: + 353 1 671 6916
email: gosullivan@eircom.ie



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


FIAT SPA: Auto Unit's Market Share in Italy Sinks 13% in April
--------------------------------------------------------------

The auto division of Italian industrial giant Fiat SpA continues
to lose market share in the country, registering a 13% slip in
April, the fourth consecutive decline in as many months.

Citing the Transport Ministry, Bloomberg said Fiat sales fell to
61,340 cars from 87,333 a year earlier.  The only consolation is
that all carmakers in Italy suffered the same slip.  Overall car
sales, measured by registrations, shrunk to 191,300 vehicles in
April from 220,786 in March.

"This has confirmed my opinion of Fiat as the worst auto player
in Europe.  I don't know how they can save the auto unit, but the
only options are to sell or restructure," Banco di Sardegna fund
manager Paolo Wenk told Bloomberg.

Carmakers association Anfia, for its part, blamed the general
strike on April 16 and the national holiday on April 25 as the
reason for the decline in sales.  The association expects sales
to fall further to 14% in the first half.

Already, car registrations in the country have fallen 14% since
the start of the year, from a record 2.43 million units in 2001
to 2.1 million vehicles.

Last year, the industrial group lost a total of EUR445 million,
the first in eight years, as Fiat Auto lost market share to
rivals such as PSA Peugeot Citroen.

Some say Fiat may speed up the sale of the division to General
Motors Corp., which already owns 20% of the unit.  According to
Bloomberg, Fiat has an option to force General Motors to buy the
rest of the auto unit between 2004 and 2009.

The slow turnover of the new Stilo car has also hurt the car
unit.  The new model competes with Volkswagen AG's Golf and Ford
Motor Co.'s Focus.


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


KPNQWEST: Refuses to Comment on Rumors to File for Insolvency
-------------------------------------------------------------
KPNQwest http://www.kpnqwest.comrefused to comment Monday on
rumors it is poised to file for protection from creditors and
that Spain's Telefonica might be involved in a rescue plan for
KPNQwest, a report from the Dow Jones Newswires said.

Last week, the company said it is looking at ways of
restructuring its balance sheet and may miss debt payments, the
paper said.

said that the company cannot comment whether as part of its
restructuring, or as to whether it has held any talks with
Telefonica.

Telefonica denied holding talks with KPNQwest.

Koen van Zijl, KPNQwest's spokesperson, said reports that the
company will post first-quarter earnings Tuesday are inaccurate.
He adds that the company probably would not do so until about the
end of May.

However, the company is likely to update the market on its
restructuring plans, the report said.

Analysts establish that the broadband data carrier might seek to
swap much of its EUR2.2 billion debt for equity as part of its
rescue plan and that it will not be able to turn to parents KPN
or Qwest to fund the company's collapse.


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


DAEWOO MOTOR: Nysa Factory Workers Demand State Intervention
------------------------------------------------------------

Some 800 workers at the light-truck factory of insolvent Daewoo
Motor Polska staged a strike Monday to demand the release of
wages due since January and plea for government intervention.

According to the Associated Press, the workers aimed their
grievances at the board and the government, accusing both of
lacking resolve to prevent the likely closure of the factory.

Located in the Southwestern city of Nysa, the factory filed for
bankruptcy in April, citing debt and lack of support from its
troubled South Korean parent company.  The main unit in Korea
itself succumbed to bankruptcy last year, weighed down by debts
of about US$17 billion.

Last week, Polish factories were excluded from the US$1.2 billion
takeover deal inked between General Motors and the head office in
Korea.  This development has made imminent the shutdown of the
entire Polish business.

In January, a factory in Eastern city of Lublin also declared
bankruptcy.  Representatives of the Polish government are
expected in Seoul this week for talks about the fate of Daewoo's
largest Polish factory, an automobile plant in Warsaw.  This unit
has also suffered losses and laid-off workers, but has so far
avoided insolvency.

Closure of Daewoo's factories in Poland stands to aggravate the
unemployment rate in the country, which has already peaked at a
record 18.1% since the fall of communism.


ELEKTRIM SA: Files Complaint Against Court to Cut Proceedings
-------------------------------------------------------------

The Management Board of Elektrim SA informs that on April 30,
2002, Elektrim SA filed a complaint against the court's decision
dated April 23, 2002 to discontinue the composition proceedings.

The complaint was filed in the District Court in Warsaw, by means
of the Warsaw Regional Court, Commercial Court, XVII Commercial
Department - Bankruptcy and Composition Proceedings Division

In the complaint, Elektrim asks for the revoking of the court's
decision in whole because of the breaching of the law, in
particular of Art. 51, Art. 52 1 and Art. 59 1 of the Law of
Composition Proceedings.

According to Elektrim SA, the court allowed voting on the
composition proceedings without the required majority of
creditors present, thus the decision on the discontinuing of the
composition proceedings was issued based on illegal voting.


ELEKTRIM SA: Investment Deal in Former Internet Unit Held up
------------------------------------------------------------

The continued failure of Elektrim SA to hand over the legal
document related to the sale of its 75% stake in Poland.com
threatens an investment offer for the Internet firm.

The Warsaw Business Journal says an investment proposal risks
being dissolved, as it couldn't be finalized without the document
currently held by Elektrim.

This legal document relates to one of two transactions that
transferred Elektrim's stakes to Tomasz Glowiak and two other
Poland.com employees in November.  The group has now consolidated
the portal's ownership, save for the stake now held up by
Elektrim's failure to pass the documents.

"The main reasons for the investment delay (are) all connected
with Elektrim's case," Mr. Glowiak told the paper.

He said one of Elektrim's attorneys is still reviewing the
document for the second transaction, which requires the
signatures of two Elektrim executives. Elektrim spokeswoman Ewa
Bojar says she had no idea why the final document hadn't been
delivered and could not comment.

"I would not be surprised if all the time Elektrim needed for
simple documents would turn out to be lost time for Poland.com,"
Mr. Glowiak said.

The portal inked a letter of intent two months ago with a Polish
IT firm for the exclusive right to buy shares in the Internet
company, Mr. Glowiak said.   Under the deal, the investor has
four more months to purchase a stake.


NETIA HOLDINGS: Reports 2002 First Quarter Results
--------------------------------------------------
Business Wire May 06

Netia Holdings, Poland's largest alternative provider of fixed-
line telecommunications services, today announced unaudited
financial results for the first quarter of 2002.

Financial Highlights:

-- Revenues for Q1 2002 amounted to PLN 146.6m (US$35.5m), a
year-on-year increase of 19%.
-- EBITDA for Q1 2002 amounted to PLN 30.1m (US$7.3m), a year-on-
year increase of 99%. EBITDA margin for Q1 2002 reached 20.5%.
-- Cash at March 31, 2002 amounted to PLN 389.2m (US$94.2m),
excluding restricted investments of PLN 49.1m (US$11.9m).
-- Consolidated shareholders' equity at the end of Q1 2002 was
negative PLN 588.7m or US$142.5m.
-- Restructuring Agreement with regard to economic terms of debt
restructuring was reached and signed by Netia, Telia AB, Warburg
Pincus, certain financial creditors and the Ad Hoc Committee of
Noteholders on March 5, 2002.

The terms of the restructuring include the exchange of Netia's
existing Notes and swap claims for new notes with an aggregate
principal amount of EUR 50million and ordinary shares
representing 91% of our share capital immediately post-
restructuring.

The existing Netia shareholders would retain 9% ownership and
receive warrants to acquire shares representing 15% of Netia's
post-restructuring share capital (after the provision of shares
representing 5% of our ordinary share capital for a key employee
stock option plan).

- All necessary share and warrant issuances with regard to
Netia's reorganisation have been approved by its shareholders. On
April 5, 2002, Netia filed with the Polish Securities and
Exchange Commission a prospectus relating to the issuance and
registration of shares in relation to the Restructuring
Agreement.

- Consents from Holders of over 90% of the Notes to the terms of
the restructuring were received as of March 31, 2002.

- Arrangement proceeding in Poland was opened with respect to
Netia Telekom S.A., one of Netia's subsidiaries, on April 22,
2002. Netia is currently awaiting the opening of proceedings for
Netia Holdings S.A. and another of its subsidiaries, Netia South
Sp. z o.o.

Operational Highlights:

-- Netia's nationwide backbone network stretched to 3,300 km as
of March 31,
2002.

-- Subscriber lines amounted to 342,288 net of churn and
disconnections, a year-on-year increase of 4%.

-- Business customer lines amounted to 100,563, a year-on-year
increase of 22%. The business segment reached 29.4% of total
subscriber lines while year-to-date revenues from business
customers accounted for 57.1% of telecom revenues as of March 31,
2002.

-- Average revenue per line increased by 8% to PLN 130 in March
2002, compared to PLN 120 in March 2001.

-- An integrated customer relationship management (CRM) system
"CORE" was launched on April 7, 2002 as the first integrated CRM
solution of any Polish telecom operator.

-- Headcount decreased to 1,362 at March 31, 2002 from 1,536 at
December 31, 2001, as a result of management's program of cost
reduction initiated in August 2001.

Other Highlights:

-- Changes within Netia's Supervisory Board. Effective March 12,
2002 Przemyslaw Jaronski was elected to Netia's Supervisory
Board, in order to represent the Ad Hoc Committee of
Noteholders.

Kjell-Ove Blom, Acting CEO and Chief Operating Officer commented:
"Our cost savings and increased efficiency program is producing
results and has contributed to our EBITDA growth and margin year-
on-year. Netia also continues its track record of innovation with
new product launches such as IN services and introduction of the
first integrated CRM system of any Polish operator, which will
contribute to future operational efficiency and customer service
improvements.

"Our efforts have been focused on Netia's debt restructuring
process, completion of which would position us to continue to
execute our long-term strategy as Poland's largest alternative
telecommunications operator.

"In the quarter Netia experienced a slight overall decline of
0.4% in ringing lines. This is mainly the result of churn by
customers impacted by the deterioration of the Polish economy and
customers moving outside of Netia's coverage as well as low sales
to residential customers. In addition, we refrained from
launching any new sales campaigns during the quarter, given the
uncertainties that prevailed prior to the consensual agreement
with our bondholders on Netia's new capital structure.
Nevertheless, we achieved a net increase in business customers,
which now represent 29.4% of subscriber lines and 57.1% of
telecom revenues, reflecting our intensified focus on corporate
and SME markets."

Avi Hochman, Chief Financial Officer of Netia, added: "Netia has
achieved substantial 99% year-on-year growth in EBITDA and an
EBITDA margin of 20.5% as our cost reduction and increased
efficiency program makes headway. Both revenues and EBITDA saw
modest increases compared to the fourth quarter. Between Q1 2002
and Q4 2001 our cash position decreased by PLN 97.7m due to the
settlement of a swap transaction with JPMorgan Chase Bank, the
purchase of fixed assets and the restructuring costs.

"More importantly, Netia's debt restructuring proposal has now
been accepted by over 90% of the bondholders. We are moving to
implement the swap of debt for equity. This will establish a
solid capital structure and foundation to enable Netia's future
healthy development."

Financial Information
2002 Q1 vs. 2001 Q1

Revenues increased by 19% to PLN 146.6 million (US$35.5 million)
for Q1 2002 compared to PLN 122.9 million for Q1 2001.

Revenues from telecommunications services increased by 22% to PLN
140.8 million (US$34.1 million) in Q1 2002 from PLN 115.3 million
in Q1 2001.

The increase was primarily attributable to an increase in total
number of subscriber lines coupled with an increase in average
revenue per line associated with the increase in business mix of
lines as well as introduction of new products.

The total number of subscriber lines increased by 4% to 342,288
at March 31, 2002 from 328,728 at March 31, 2001 while the
overall increase in average monthly revenue per line was 8% to
PLN 130 (US$31) for March 2002, compared to PLN 120 for March
2001.

EBITDA increased by 99% to PLN 30.1 million (US$7.3 million) in
Q1 2002 compared with PLN 15.2 million for Q1 2001. EBITDA margin
for Q1 2002 increased to 20.5% from 12.3% for Q1 2001.

"Other operating expenses" amounted to PLN 85.0 million (US$20.6
million) and represented 58% of total revenues in Q1 2002,
compared to 61% in Q1 2001, with salaries and benefits being the
main item.

The level of salaries and benefits increased in Q1 2002 in
comparison to Q1 2001 mainly as a result of severance payments of
PLN 0.9 million and bonus provisions of PLN 2.5 million created
in accordance with the Key Employee Retention Plan bonus scheme
based on the Restructuring Agreement and agreed upon by the
Supervisory Board and Ad Hoc Committee of Noteholders.

Interconnection charges increased by 4% to PLN 29.4million
(US$7.1 million) in Q1 2002 from PLN 28.4 million in Q1 2001.
Interconnection charges as a percentage of calling charges
decreased to 29% from 33%, reflecting the increased proportion of
traffic carried through Netia's own backbone network.

Amortization of goodwill and other intangible assets increased to
PLN 18.3 million (US$4.4 million) in Q1 2002 from PLN 15.1
million in Q1 2001, mainly as a result of increased amortization
of computer software as well as amortization of the Warsaw
metropolitan license, which became operational in March 2001.

Depreciation of fixed assets increased by 26% to PLN 48.8 million
(US$11.8 million) in Q1 2002, from PLN 38.8 million in Q1 2001,
as the construction stage of additional parts of the network was
completed.

Net financial expenses increased to PLN 207.7 million (US$50.3
million) in Q1 2002 from PLN 20.3 million in Q1 2001 due to
foreign exchange losses resulting from the depreciation of the
Polish zloty against the euro and dollar in Q1 2002 compared to
the zloty's appreciation in Q1 2001 as well as higher interest
costs connected with senior notes issued by Netia.

Net loss amounted to PLN 245.4 million (US$59.4 million) in Q1
2002, compared to a net loss of PLN 56.8 million in Q1 2001. The
higher loss was mainly attributable to an increase in net
financial expenses and unrealized foreign exchange losses.

Cash used in investing activities decreased by 69% to PLN 92.1
million million (US$22.3 million) in Q1 2002, from PLN 294.1
million in Q1 2001, in accordance with the revised business plan
approved in late 2001.

Cash and cash equivalents at March 31, 2002 amounting to PLN
389.2 million (US$94.2 million) were available to fund Netia's
operations. The Company also had deposits in escrow amounting to
PLN 49.1m (US$11.9 million) at March 31, 2002 designed to service
the interest payments on its 2000 Senior Notes in June 2002. In
accordance with the Restructuring Agreement, these deposits will
be transferred to the Company at the completion of restructuring.

Connected lines at March 31, 2002 increased by 0.2% to 527,562
lines, up from 526,402 lines at December 31, 2001. The number of
connected lines decreased in comparison with the number reported
for Q1 2001 due to the write-off of 70,200 lines recorded in the
third quarter of 2001.

Subscriber lines in service increased by 4% to 342,288 at March
31, 2002 from 328,728 at March 31, 2001 and decreased by 0.4%
from 343,802 at December 31, 2001. The number of subscriber lines
is net of customer churn and disconnections of defaulting payers
by the Company, which amounted to 7,145 and 7,299, respectively.

The recorded churn was mostly a result of customers affected by
the deterioration of Polish economic conditions, the
uncertainties surrounding Netia's financial situation and
customers moving outside the coverage of Netia's network.

Business lines as a percentage of total subscriber lines reached
29.4%, up from 25.0% at March 31, 2001 and 28.5% at December 31,
2001, reflecting the intensified focus on the corporate and SME
market segments. Business customers accounted for all net
additions in the quarter while the residential segment saw net
disconnections. Revenues from business customers accounted for
57.1% of telecommunications revenues in Q1 2002.

Business customer lines in service increased by 22% to 100,563 at
March 31, 2002 from 82,145 at March 31, 2001 and by 3% from
97,994 at December 31, 2001.

Average monthly revenue per line grew by 8% to PLN 130 (US$31) in
March 2002, compared to PLN 120 in March 2001 and by 7% from PLN
122 in December 2001.

Average monthly revenue per business line amounted to PLN 251
(US$61) in March 2002, representing a 12% increase from PLN 225
in December 2001 and a 1% decrease from PLN 254 in March 2001.

Average monthly revenue per residential line increased by 5% to
PLN 79 (US$19) in March 2002 from PLN 75 in March 2001 and
decreased by 2% from PLN 81 in December 2001.

An integrated customer relationship management (CRM) system was
launched in April 2002, the first integrated CRM system of any
Polish telecom operator. This new initiative is designed to
increase Netia customers' satisfaction while further reducing
operating costs.

Intelligent Network (IN) services, including new free-phone and
split-charge service offerings, were launched in February 2002.
Netia is the first domestic long distance operator among the
three competitors to the incumbent TP S.A. to launch IN services.

Netia's nationwide backbone network connecting Poland's twelve
largest urban areas now stretches to 3,300 kilometers and
consists of 2,250 kilometers of fiber and 1,050 kilometers of
leased lines. Netia is constructing additional infrastructure,
planned for completion in 2002, of approximately 960 kilometers
to replace most of the present leased lines.

Headcount at March 31, 2002 was 1,362, compared to 1,635 at March
31, 2001 and 1,536 at December 31, 2001. During 2001 Netia made
announcements on headcount reductions of approximately 20%, and
finalization of this program is being carried out.

The number of active lines in service per employee increased by
21% to an average of 249 in Q1 2002, from 206 in Q1 2001. Monthly
average telecommunications revenue per employee increased by 41%
to PLN 34,357 in Q1 2002 from PLN 24,376 in Q1 2001.

The Polish Minister of Infrastructure decided on January 19, 2002
to postpone the payment of license fee installments of certain
Netia operating subsidiaries, originally due in November and
December 2001, until June 30, 2002. The total amount of the
deferred installments is approximately EUR 33 million.

The Minister of Infrastructure also established deferral fees, in
the total amount of approximately PLN 9 million, for the re-
scheduled license fee payments, payable on June 30, 2002.

In May 2001, certain of our subsidiaries applied to the Ministry
of Communications and the President of the Office for Regulation
of Telecommunication ("URT") for confirmation that remaining
license fee installments are not due and requesting the return of
EUR 92 million in license fees paid by such subsidiaries. In
parallel, Netia applied for a return of EUR 24 million in license
fees paid for its domestic long distance license in April 2001.

Key Figures
-----------------------------------------------------------------
PLN'000                 1Q02      4Q01     3Q01     2Q01     1Q01
-----------------------------------------------------------------
Revenues             146,560  144,868  136,789  134,278   122,916

EBITDA before
Millennium
allowance              30,090    29,294    17,745    15,973
15,154
Margin %                 20.5%     20.2%     13.0%     11.9%
12.3%

EBITDA after
Millennium
allowance            30,090   29,264     801    15,973    15,154
Margin %               20.5%   20.2%    0.6%     11.9%     12.3%
Net loss before FX  (142,078)(516,166)(495,795)(160,059)(133,027)

Net profit /
(loss) after FX   (245,407) (286,409) (761,020) (45,031) (56,757)
Net debt(b)    3,063,715  2,862,423 2,775,926 2,430,291 2,255,963
EBIT                (36,974) (57,940) (383,261) (48,984) (38,714)

US$'000(a)            1Q02     4Q01      3Q01      2Q01      1Q01
-----------------------------------------------------------------
Revenues               35,468   35,059   33,104   32,496   29,746
EBITDA before
Millennium allowance    7,282   7,089   4,294    3,866     3,668
Margin %              20.5%   20.2%    13.0%     11.9%     12.3%
EBITDA after
Millennium allowance    7,282   7,082     194    3,866    3,668
Margin %               20.5%   20.2%    0.6%   11.9%     12.3%
Net loss before FX  (34,384)( 124,916)(119,986) (38,736) (32,194)
Net profit /
(loss) after FX     (59,390)(69,313) (184,173) (10,898)  (13,736)
Net debt(b)         741,443  692,728  671,795   588,149   545,960
EBIT                 (8,948) (14,022) (92,752) (11,855)   (9,369)

The US$ amounts shown in this table and in the entire document
have been translated using the exchange rate of PLN 4.1321 =
US$1.00, the average rate announced by the National Bank of
Poland at March 31, 2002. These figures are included for
convenience only.

Net debt is defined as long term debt, including its current
portion, less cash, restricted cash and both long and short term
portion of escrow accounts.

Key operational indicators
-----------------------------------------------------------------
Time periods:          1Q02     4Q01    3Q01(a)     2Q01     1Q01
-----------------------------------------------------------------

Network data
Number of connected
lines (cumulative)   527,562  526,402  519,035  576,012   553,798

Subscriber data
Subscriber lines
(cumulative)         342,288  343,802  343,634  338,338   328,728
Total net additions  (1,514)      168    5,296    9,610     7,655
Business net additions  2,569    4,281    5,721   5,847     1,008

Business subscribers
(cumulative)         100,563   97,994   93,713   87,992    82,145

Business mix of total
subscriber lines       29.4%    28.5%    27.3%    26.0%     25.0%

Average monthly
revenue per line (PLN)   130      122      122      121       120

Average monthly revenue
per business line (PLN)  251      225      243      239       254

Average monthly revenue
per residential line (PLN) 79      81       76       80        75

Following the general outline of the ten-year business plan and
strategy to focus on providing services to business customers
approved in late 2001, the number of connected lines reported for
the third quarter 2001 has been recalculated in order to reflect
the write-off of 70,200 connected lines due to the future limited
utilization of certain existing parts of Netia's local access
network.

Time periods: 1Q02 4Q01 1Q01
-----------------------------------------------------------------
Telecommunications revenue 140,757 139,269 115,277
Other revenue 5,803 5,599 7,639
Total revenues 146,560 144,868 122,916
Interconnection charges (29,382) (32,473) (28,386)
Cost of equipment (2,077) (703) (4,403)
Other operating expenses (85,011) (82,398) (74,973)
EBITDA before exceptional items 30,090 29,294 15,154
Millennium allowance 0 (30) 0
EBITDA after exceptional items 30,090 29,264 15,154
Margin (%) 20.5% 20.2% 12.3%
Depreciation of fixed assets (48,774) (46,071) (38,762)
Amortization of
intangible assets (18,290) (21,747) (8,813)
Amortization and
impairment of goodwill 0 0 (6,293)
Impairment provision
for fixed assets 0 (19,386) 0
EBIT (36,974) (57,940) (38,714)
Margin (%) -25.2% -40.0% -31.5%
Net financial income /
(expenses) (207,677) 159,305 (20,309)
Effect of default on
long-term debt 0 (112,047) 0
Effect of canceling the swaps 0 (274,637) 0
Loss before tax (244,651) (285,319) (59,023)
Tax charges (651) (998) (296)
Minority share in (profit)/
loss of subsidiaries (105) (92) 2,562
Net loss (245,407) (286,409) (56,757)
Margin (%) -167.4% -197.7% -46.2%
Loss per share
(not in thousands) (7.96) (9.29) (1.84)
Weighted average number of
shares outstanding 30,817,291 30,817,291 30,817,291
(not in thousands)
Note to financial expenses
Net Interest Expense (104,348) (99,767) (89,520)
Net Foreign Exchange
gains / (losses) (103,329) 229,757 76,270
Fair value losses on
cross currency swap 0 0 (7,059)
transactions
Other financial
income / (expenses) 0 29,315 0
Balance sheet (according to IAS, unaudited)
(PLN in thousands unless otherwise stated)
Time Periods March 31, 2002 December 31, 2001
-----------------------------------------------------------------
Cash and cash equivalents 389,199 486,946
Restricted investments 49,074 47,500
Accounts receivable
Trade, net 89,374 91,838
Government 8,634 15,179
Other, net 3,905 3,510
Inventories 2,180 1,708
Prepaid expenses 15,304 9,358
Total current assets 557,670 656,039
Investments 1,062 1,949
Fixed assets, net 2,430,918 2,454,309
Computer software, net 93,501 82,944
Licenses, net 681,233 695,149
Other long term assets 34,444 13,957
Total non-current assets 3,241,158 3,248,308
TOTAL ASSETS 3,798,828 3,904,347
Current maturities of long term debt 3,501,988 3,396,869
Short term liabilities for licenses 176,215 165,613
Accounts payable and accruals
Trade 113,475 170,779
Liability connected with
swaps cancellation 203,444 224,907
Accruals and other 267,292 163,561
Deferred income 6,195 7,495
Total current liabilities 4,268,609 4,129,224
Long term liabilities for licenses 93,162 92,764
Total non-current liabilities 93,162 92,764
Minority interest 25,712 25,607
Share capital 203,285 203,285
Share premium 1,713,865 1,713,865
Treasury shares (3,611) (3,611)
Accumulated deficit (2,502,194) (2,256,787)
Total shareholders' deficit (588,655) (343,248)
TOTAL LIABILITIES AND DEFICIT 3,798,828 3,904,347
Cash flow statement (according to IAS), unaudited
(PLN in thousands unless otherwise stated)
Time periods: 1Q02 4Q01 1Q01
-----------------------------------------------------------------
Net Loss (245,407) (286,409) (56,757)
Depreciation and
amortization of goodwill 67,064 67,818 53,868
Amortization of discount on notes 0 11,821 30,712
Minority interest 105 92 (2,562)
Impairment provision for fixed assets 0 19,386 0
Effect of default on long-term debt 0 112,047 0
Effect of canceling of
swap transactions 0 274,637 0
Allowance for debtors subject
to court settlements 0 30 0
Interest expense accrued
on long term debt 102,995 53,623 73,151
Interest expense accrued
on license liabilities 4,969 7,885 2,375
(Increase)/decrease in
long term assets (20,487) (8,740) 500
Foreign exchange (gains) / losses 103,788 (235,587) (70,714)
Change in working capital (3,490) 6,904 10,229
Net cash provided by
operating activities 9,537 23,507 40,802
Purchase of fixed assets
and computer software (92,062) (68,898) (239,362)
(Increase) / decrease
of investments 0 0 8,500
Purchase of minority interest 0 0 (59,193)
Payments for licenses 0 0 (3,998)
Net cash used in
investing activities (92,062) (68,898) (294,053)
Payment of interest
on long term debt 0 (56,135) 0
Increase in restricted cash 0 7,135 0
Payment for cancellation of
swap transactions (29,279) (22,460) 0
Net cash used in
financing activities (29,279) (71,460) 0
Effect of exchange rate
change on cash and cash 14,057 (39,591) (43,704)
equivalents
Net change in cash &
cash equivalents (97,747) (156,442) (296,955)
Cash & cash equivalents at
the beginning of the 486,946 643,388 1,142,850
period
Cash & cash equivalents at
the end of the period 389,199 486,946 845,895


Contact Information:

Netia Holdings
(IR) Anna Kuchnio, +48-22-330-2061
(Media) Jolanta Ciesielska, +48-22-330-2407

Taylor Rafferty, London
Jeff Zelkowitz, +44-20-7936-0400

Taylor Rafferty, New York
Andrew Saunders, +1-212-889-4350


STOCZNIA SZCZECINSKA: Banks Urge Board Shakeup in Return for Aid
----------------------------------------------------------------

A seven-bank consortium has finally agreed to extend Stocznia
Szczecinska Porta Holding S.A. a US$40 million bridge loan, but
with one condition: all board members should resign and transfer
their shares to the banks for free.

The Polish News Bulletin identified PKO BP as the bank that
allegedly set the condition.  The same bank has also demanded
that shareholders lower the corporate capital from PLN87.5
million to PLN12.5 million.

"The economy minister let me understand that this bank wanted
more changes.  These demands are completely incomprehensible to
us," one unnamed member of the shipyard's supervisory board was
quoted by the news outfit as saying.

The loan, however, will allow the company to complete its
shipbuilding project stalled on March 4 when it filed for
insolvency. The Agency of Industrial Development will guarantee
the loan, the report says.


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


UNION FENOSA: Soluziona Subsidiary Wins Contract From Enel
----------------------------------------------------------

Soluziona, the technology services unit of Spanish electricity
company Union Electrica Fenosa, S.A., announced Monday it secured
a contract to inspect electricity lines for Rome-based power
utilities group Enel SPA.

In a statement, Soluziona said that it will inspect the 12,000
kilometers of medium tension electricity lines that Enel has on
the Italian island of Sardinia, the report said.

The contract, of undisclosed amount, will also involve
Soluziona's inspection of 2,000 lines of high tension lines that
Enel has in the regions of Lazio, Umbria and Abruzzo.

The Spanish energy group said that its so-called "Buho"
technology allows it to detect all types of anomalies in
electricity lines.

The Buho system has two parts: a helicopter subsystem which
captures images of the electricity lines and a laboratory
diagnostics subsystem which analyzes the images.

Last year, Soluziona said it was able to check 13,000 kilometers
of electricity lines for Enel in the Italian regions of Ancona,
Lazio, Rome, Calabria and Turin.


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


FRAMFAB AB: Consultancy Group Expands www.nikefootball.com
----------------------------------------------------------

In their latest online efforts, Nike and internet consultancy
company Framfab AB http://www.framfab.com/have expanded the
award-winning nikefootball.com website to 13 languages to
coincide with the launch of Nike's football campaign, The Secret
Tournament.

When nikefootball.com was first launched in February 2000, it was
solely a European effort. With this launch, the site becomes
truly global as it expands to the United States, Asia and Latin
America.

"Luckily, football is a universal language, and it has been an
exciting challenge for Framfab Denmark to manage a global rollout
with all that entails" says Framfab Denmark's Account Director
Bettina Sherain. "After working on nikefootball.com for two-and-
a-half years, this was a project that demanded the highest
creative level, both with regards to concepting, execution as
well as completion." continues Ms. Sherain.

In connection with the launch of The Secret Tournament campaign,
nikefootball.com lets the users delve deeper into the story
behind the Secret Tournament, check out Nike's new products and,
perhaps most importantly, enter a 3 on 3 tournament themselves,
both in the real world and virtually.

The site features a state-of-the-art multiplayer online game
where you can train your team and compete globally for cool
prizes. It's 3 on 3, 3 minutes max, sudden death and no crying.

As an added challenge, the users can enter The Mind Cage to find
out if they have the mental agility required to play football on
the highest level.

The nikefootball.com project is one of several international
projects within Framfab. It's also a representative project for
how Framfab works in relationships that span multiple years and
in client engagement that consists of several projects of varying
size.

Framfab AB, formerly known as Framtidsfabriken AB, was
established in 1995. The company's clients are manufacturing,
internet sales and internet marketing, service, payment and
delivery companies.

Framfab AB's main clients are Volvo, Saab, Astra, Nike, Ikea,
Good Year and Bosch. The company has offices in Sweden, Denmark,
France, Germany, Italy, Norway, UK and USA.

In 2000 Framfab AB acquired Guide Consult AB, eBizApps.com,
mindfact Interaktive Medien AG, MakeIT AS, Tecma AB, Halbye, Kaag
& Partners A/S, NetlinQ N.V., Arexus OOD and Dimac AB. The
company's sales consist mainly of consultancy fees.


FRAMFAB AB: Changes in the Framfab Management Team
--------------------------------------------------

Johan Ekesioo, Vice President Business Reengineering, left the
Group Management of Framfab yesterday.

Framfab is a well-structured company focused on Internet
consulting and well positioned to the current economic climate.
As of May 7, Johan Ekesioo therefore completes the work he began
a year ago.

"I would like to thank Johan for an excellent work and for the
firm support that he has been given Framfab during the
restructuring work of the company," says Sven Skarendahl,
executive Chairman of the Board.

For additional information, contact:
Johan Ekesioo, VP Business Reengineering
Phone: +46 705 59 07 84
E-post: johan.ekesioo@framfab.se

Sven Skarendahl, executive Chairman of the Board
Phone: +46 8 41 00 10 00
E-post: sven.skarendahl@framfab.se

Tobias Bulow, Group Communications Manager Framfab
Phone: +46 709 73 75 16
E-post: tobias.bulow@framfab.se


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


SULZER MEDICA: Approval of Spine Treatment Boosts Market Outlook
----------------------------------------------------------------

Sulzer Medica reversed Monday the loss it had suffered in
Friday's trading after market investors eyed the company
favorably following the approval of a subsidiary's product by the
U.S. Food and Drug Administration.

According to the Financial Times, Sulzer Spine-Tech, a US-based
unit, successfully got marketing approval for its BP/Lordotic
device, a titanium-threaded cage used in lumbar fusions for the
treatment of lower back and leg pains linked to degenerative disc
diseases.

News of the nod buoyed share prices, pushing it 8% up to CHF179
from CHF165.  This rally reversed the loss last Friday when UK
regulators ordered the recall of all existing stocks of the
Sulzer Carbomedics heart valve tester used in a fatal operation
in Sheffield.

Meanwhile, U.S. district court Judge Kathleen O'Malley is due to
start a final fairness hearing this week for the terms of a US$1
billion settlement that would prevent Medica from being involved
in further litigation initiated by patients last year who were
fitted with its faulty artificial hips, the report says.


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


BRITISH TELECOM: Break-up of Broadband Unit From Network Urged
--------------------------------------------------------------

Members of parliament urged the British telecom regulator Oftel
last week to consider breaking up British Telecom to help spur
the take up of broadband Internet service in the country.

The House of Commons Culture, Media and Sport Select Committee
sided with Cable & Wireless Plc, which has blamed the
uncompetitive broadband market to the incumbent's dual role.

British Telecom currently operates the local loop -- the last
mile of the telephone network connecting users to local exchanges
-- and at the same time sell wholesale and retail broadband
services.

"We recommend that Oftel, and Ofcom when it takes over the
responsibilities of Oftel in due course, should take serious note
of criticisms of its effectiveness in establishing a competitive
UK market for broadband," the committee said in a report
published last week.

"(The regulator should) follow up with remedial action -- taking
account of the proposal to require BT's network to stand on its
own as a distinct business," the report said.

Cable & Wireless CEO Graham Wallace had told the committee that
the current model encouraged BT to minimize investment and
maximize prices.  He suggested a complete separation of the local
loop from the rest of British Telecom.  He called on the
Monopolies and Mergers Commission to probe the incumbent's market
dominance.

The company for its part dismissed accusations that it is the
reason for the lag in the country's broadband services.

"The UK market for broadband is the most competitive in Europe
and we see no reason why we should change our business model to
suit Cable and Wireless," a spokesman said.

He added that if the local loop were split from the company,
there would be no incentive for any independent operator to
upgrade the "last mile."  He said right now there is such
incentive because British Telecom carries services through the
network.


BRITISH TELECOM: Rated "Strong Sell" Due to Poor Performance
------------------------------------------------------------

LondonStockPicks.Com rates British Telecom Group "strong sell"
due to its continued "underperform" down trend against the FTSE-
100 index.  Similarly, the online market analyst also gave
Baltimore Technologies a "sell" rating due to its downward
spiral, despite outperforming the stock index.

In the case of Baltimore, the analyst said it is possible for a
stock to outperform the FTSE and still drop in price.

LondonStockPicks.com clarifies, though, that its ratings are mere
opinions.

"Traders should (in our opinion) make 'buy' or 'sell' decisions
based on variables including (but certainly not limited to),
experience, portfolio size, risk-tolerance, and current market
conditions - none of which we can control," the firm says.

"And, you must do your own 'due diligence.' LSP is not
responsible for trades you make (or don't make)," the online
analyst adds.


NTL INCORPORATED: Knapp to Revive Merger Talks With Telewest
------------------------------------------------------------

NTL Incorporated and Telewest Communications Plc vowed to revive
talks of merging together and put up a strong challenge to
British Telecom and BSkyB.

NTL CEO Barclay Knapp announced his intention to renew
exploratory discussions with UK's No. 2 cable operator last week
after he successfully gained approval for the firm's US$10.6
billion debt-for-equity swap.

"I have been trying to work in that area for ten years,
consolidating UK cable.  It makes a lot of sense for us to get
together and we look forward to taking that issue up again when
we come out of this process," Mr. Knapp told The Times.

Earlier, Telewest Finance Director Charles Burdick told the same
paper that the commercial logic for a merger to create a cable
company with almost five million customers was "strong, if not
stronger than ever".

"The world's just going to get tougher and having the one cable
company competing with BT and Sky (BSkyB) in all product areas is
really what makes the best sense for the consumer and the best
industrial logic," he said.

The paper says NTL and Telewest own cable franchises that do not
overlap.  This means that any deal would result in little
duplication of services and would therefore face little or no
problem at all with regulators.

With NTL's woes now substantially minimized, it is now the turn
of Telewest to gain inroads on its GBP5.3 billion debt-pile. The
company had earlier hinted of doing its own debt-for-equity swap.


NTL INCORPORATED: Launches U.K.'s First In-premises IP Product
--------------------------------------------------------------

NTL Business, a leading national and local provider of integrated
business communications, on May 3, launched IP Premise, the
industry's first standardized in-premises IP product,
specifically for small and medium sized companies.

IP Premise is suitable for single site businesses or companies
with branch sites employing up to 300 staff and delivers a cost-
effective, easy to implement, converged voice and data network.

IP Premise enables voice and data traffic to be carried over one
single network, significantly reducing administration and
maintenance costs and is backed by stringent service level
agreements.

"The corporate world is lining up behind IP as the future of
networking technology, but, to date, smaller sized companies have
been largely excluded from enjoying its benefits due to cost
restrictions and technical issues," explains David Wills, IP
Portfolio Manager at NTL Business. "IP Premise harnesses those
benefits into a product package that is perfectly tailored for
small and medium enterprises."

IP Premise includes structured cabling, active data and LAN
equipment, IP telephony, and technical support, plus initial
training and flexible finance. It also includes a technology
refresh option that enables users to expand or upgrade their
solution.

IP Premise is fully scalable and features an integrated
infrastructure, over which users can run IP-based business
applications, such as HR, payroll and contact centre solutions.
Pricing is structured on a "per user" basis enabling businesses
to add or remove users as required. The product also features an
equipment rental option, minimising the initial outlay required.

NTL Business has pioneered the roll-out of IP across the UK, and
has successfully completed some of Europe's largest IP
installations, including London's ExCel exhibition centre, German
banking giant WestLB, and the Bonnier Publishing Group.

NTL offers a wide range of communications services to homes and
business customers throughout the UK, Ireland, Switzerland,
France, Germany and Sweden.

Over 20 million homes are located within the NTL's group
franchise areas, covering major European cities including London,
Paris, Frankfurt, Zurich, Stockholm, Geneva, Dublin, Manchester
and Glasgow.

NTL and its affiliates collectively serve over 8.5 million
residential cable telephony and Internet customers.

In the U.K., over 11 million homes are located within NTL's
fibre-optic broadband network, which covers nearly 50% of the UK
including, London, Manchester, Nottingham, Oxford, Cambridge,
Cardiff, Glasgow and Belfast. NTL Home now serves around 3
million residential customers.

NTL Business is a GBP600 million operation and customers include
Royal Bank of Scotland, Tesco, Comet, AT&T and Orange. NTL offers
a broad range of technologies and resources to provide complete
multi-service solutions for businesses from large corporations to
local companies.

NTL Broadcast has a 47-year history in broadcast TV and radio
transmission and helped pioneer the technologies of the digital
age.

Twenty two million homes watch ITV, C4 and C5 thanks to NTL's
broadcast transmitters. With over 2,300 towers and other radio
sites across the U.K., NTL also provides a full range of wireless
solutions for the mobile communications industry.

For further information, please contact:
Tanya Pryke-Smith, NTL Business
Tel: 01256 753978
Email: tanya.pryke-smith@ntl.com

Lisa Allen/Will Curphey, Nelson Bostock
Tel: 0207 229 4400
Email: will.curphey@nelsonbostock.com


PACE MICRO: Announces the Pace 550 HD to Cable Operators
--------------------------------------------------------

Pace Micro Technology http://www.pacemicro.comunveiled Monday
its latest innovation - the Pace 550 HD - at Cable 2002.

This advanced home gateway joins the Pace 500 in a series of
industry leading solutions for U.S. cable networks.

With more features than other High-Definition (HD) cable set-top
boxes offered in the marketplace today, the Pace 550 HD pushes
the technology to the next level with advanced functionality,
such as providing secured digital connections, and resolution
flexibility for content and display devices, that is cost-
effective for operators.

The Pace 550 HD is being previewed at Pace's Booth (No. 1161)
through May 8.

With consumer demand for HDTV on the rise, cable operators are
faced with supporting both standard definition (SDTV) and high-
definition (HDTV) digital programming from content providers, as
well as the myriad of television sets in consumer homes today.

Engineers at Pace Micro Technology have developed an innovative,
cost-effective solution for operators to support the needs of
their subscribers and of content providers.

The Pace 550 HD features DVI 1.0 and IEEE1394 - standards based,
secure digital connections for digital television monitors and
consumer peripheral devices. High Definition content providers
are likely to restrict the availability of HD content until
security measures like these are adopted.

Cable operators have been particularly concerned about deploying
a legacy of unsecured boxes like those currently available. The
Pace 550 HD hardware and software architecture has been
specifically designed to enable the secure delivery of both SDTV
and HDTV content.

The Pace 550 HD is designed with flexibility in mind. This
groundbreaking home gateway technology works for both Standard
Definition and High Definition television sets (480i, 480p, 720p,
and 1080i output resolutions), and supports High Definition video
and graphics scaling for on-screen guides.

Other set-top boxes in this class can cause a subscriber's
television to display some content with both letterbox and
pillarbox bars (black bars around picture).

The Pace 550 HD actually enhances the viewer experience by
scaling content to fit both 4:3 and 16:9 displays; thus,
minimizing the use of letterbox and pillarbox bars.

"Once again, Pace is leading the industry with the most flexible,
innovative, and cost-effective solutions for cable operators,"
said Neil Gaydon, president of Pace Micro Technology Americas.

"Operators want the flexibility to support both standard
definition as well as high definition consumer products and
programming that are entering the marketplace today - and they
want a sensible solution that meets their requirements for cost
and performance. The Pace 550 HD is the best product to support
HDTV in the U.S. to date," he added.

Other key features of the Pace 550 HD include:

--  IEEE 1394 for peripheral devices
--  Component Video Out (YPbPr)
--  DVI 1.0 5.1
--  Dolby Digital SPDIF RCA Output and SPDIF Optical Output
--  USB Host Support
--  High-speed DAVIC cable modem
--  Macrovision 7.01

Pace Micro Technology plc is a pioneer of digital technology for
the home and has helped build the global market for pay
television services. Using this expertise, Pace is evolving the
set-top box into a sophisticated home gateway to enable revenue-
generating services for TV and the networked home.

In this networked home, the Pace home gateway is the portal for
entertainment and interactive communications around the home and
with the outside world. Pace analog and digital technology has
been installed in over 14 million homes worldwide since it was
founded in 1982.

The company is now actively involved in all digital platforms -
satellite, terrestrial, cable and xDSL - through relationships
with broadcasters, network operators and technology partners in
the U.K, USA, France, Europe, Latin America, Australasia and the
Far East.

These achievements were made possible through the commitment of
Pace's 1,000-strong workforce, over half of whom are research and
development engineers, dedicated to the development of digital
technology for the home and small and home office markets.

Pace Americas office is based in Boca Raton, Fla., with its head
office in West Yorkshire, England. Additional offices are
throughout England, the U.S., France and Hong Kong. The company's
shares are traded on the London Stock Exchange (PIC).
Contact Information:

Pace Micro Technology
HighTech Public Relations, Inc., Orlando, Fla.
Tammy Snook, 407/667-9355
tammysnook@hightechpr.net


PACE MICRO: Partners With Philips on Digital TV Development
-----------------------------------------------------------

Pace Micro Technology plc and Philips' semiconductor division
announced Monday they are working together to push the boundaries
of digital television by exploring new opportunities for cost-
effective wireless content distribution in the home.

The two technology leaders have agreed to develop an advanced
solution for the industry by using the 802.11b wireless standard
for low-cost distribution of multiple video streams within a
wireless home network.

Additionally, Pace and Philips will also explore the use of other
connectivity technologies. Powered by 802.11b-based wireless
LANs, the worldwide "no additional wires" home networking market
is poised to grow to US$2.4 billion by 2006, according to ABI's
recent study, "Home Networking Equipment - A Practical Assessment
of Technologies and Changing Market Dynamics."

Pace brings to the partnership the Pace Home Media Center (PHMC),
which uses the digital home gateway as the portal for interactive
communications and content distribution.

It enables electronic devices to link with each other in and
around the home through the use of existing wiring or wirelessly
via 802.11b to realize a "no additional wires" approach.

The PHMC also enables communication with the outside world via
any digital two-way platform. The Pace HMC solution can support
simultaneous viewing on multiple screens, networked personal
video recording (PVR) capabilities, Internet browsing, multiple
format decoding and other applications, providing network
operators the opportunity to generate new revenue streams and
reduce subscriber churn.

Philips offers its technology leadership in the areas of
connectivity, digital video, security and identification with its
Nexperia(TM) Home Entertainment Engine (HEE), designed for use in
advanced set-top boxes, digital consumer systems and networked
applications.

With the power and highly integrated architecture of Philips
Nexperia(TM) technology, the Pace HMC can accommodate and process
all different forms of digital content.

"The Yankee Group projects that 12.4 million U.S. homes will
adopt some type of home networking capability over the next year.
With predictions like that, it's important for Pace to lead the
industry in developing a sensible solution that works and is
affordable for network operators to deploy," said Andy Trott,
Pace's Network and Connected Devices Division President.

"We are working with the best of breed technology partners, like
Philips, with its Nexperia platform, to develop the right
solution as quickly as possible, which can be based on 802.11b as
well as other connectivity technologies," he added.

"We foresee the next major step in the evolution of a digital
set-top box to be the shift to home networks. We are pleased to
partner with Pace, a leader in Europe and the U.S., to deliver
the first home media server designed to be mass deployable to the
cable industry. Together we are using 802.11b wireless technology
that is cost-effective and deployable," said Indro Mukerjee,
Executive Vice President and General Manager, Marketing and Sales
of Philips Semiconductors.

Royal Philips Electronics of the Netherlands is one of the
world's biggest electronics companies and Europe's largest, with
sales of EUR 32.3 billion in 2001.

It is a global leader in color television sets, lighting,
electric shavers, medical diagnostic imaging and patient
monitoring, and one-chip TV products.

Its 186,000 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances,
components, semiconductors, and medical systems. Philips is
quoted on the NYSE, London, Frankfurt, Amsterdam and other stock
exchanges.

News from Philips is located at
http://www.philips.semiconductors.com.

To view a demonstration of this wireless video home networking
solution, visit the Pace Micro Technology booth (#1161) at Cable
2002.

Contact Information:

Pace Micro Technology
HighTech Public Relations, Inc., Orlando, Fla.
Tammy Snook, 407/667-9355
tammysnook@hightechpr.net

Philips Semiconductors
Tanja Laube, +49 40 23536 320
tanja.laube@philips.com


TELEWEST COMMUNICATIONS: Malone Positions Liberty for Takeover
--------------------------------------------------------------

Liberty Media, the investment company of American cable mogul
John Malone, is poised to take majority control of Telewest
Communications, the No. 2 cable operator in the U.K.

Citing The Observer, Reuters says Liberty is getting ready to buy
Telewest's high-yielding bonds.  Liberty is anticipating a debt-
for-equity swap, much like the US$10.6 billion transaction
recently set into motion by rival cable firm NTL Incorporated.

Liberty already owns 25% of Telewest, but it wants to raise this
stake to more than 50%, the report says.

According to the news outfit, bankers have confirmed that
Telewest bonds were being targeted by U.S. distressed debt
investors, who expect the company to follow NTL's lead.

The report says a banker monitoring developments told The
Observer that meetings between Mr. Malone and Telewest CEO Adam
Singer are likely to begin in a fortnight or so.

Telewest's debts total GBP5.3 billion, incurred primarily from an
acquisition spree the past three years.  The company offers
phone, Internet and pay-TV over its network and has more than
1.78 million residential subscribers.

                                    ***********

        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,
Larri-Nil Veloso and Maria Lourdes Reyes, Editors.

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

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
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