/raid1/www/Hosts/bankrupt/TCREUR_Public/020618.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

              Tuesday, June 18, 2002, Vol. 3, No. 119


                            Headlines

* G E R M A N Y *

CARGOLIFTER AG: Subsidiaries Follow Parent Into Insolvency
DEUTSCHE TELEKOM: Proposes 3.8% Salary Increase as of July 1
HELKON MEDIA: Will Leave Neuer Markt Due to High Cost of Listing
LANDESBANK SACHSEN: Acknowledges Weak Outlook, Profit Strain
MOBILCOM AG: France Telecom, Banks Near Deal Over Debt Reprieve
HERLITZ AG: Subsidiaries Will Not Liquidate, Says Administrator
KIRCHMEDIA: Publishing Firms to Challenge Commerzbank-led Bidders

* I T A L Y *

FIAT SPA: Chair Says Falling Demand Undermines Group's Cashflow

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

HAGEMEYER: CFO James Riddell Will Step Down on August 31
KPNQWEST NV: Will Let Independent Auditor Settle Dispute With KPN
KPNQWEST NV: Ebone Segment Based in Belgium Attracts Three Bids

* P O L A N D *

STOCZNIA SZCZECINSKA: Bankruptcy Filing Soon, Says Chairman

* R U S S I A *

SIBUR: Will Elect Gazprom Recommendees to Board in AGM Next Week

* S W E D E N *

CELLPOINT INC: Management Changes at Mobile Technology Provider

* U N I T E D   K I N G D O M *

BIG FOOD: Seeks Approval for GBP 129.3MM Sale, Leaseback Deal
CONSIGNIA: CEO John Roberts Retires by End of 2002
CORDIANT COMMUNICATIONS: Notification of Interest in Shares
ENERGIS PLC: Investors Want Bondholders' Debt-to-Equity Proposal
INDEPENDENT INSURANCE: Deal With Brokers Extended Until June 26
INVENSYS PLC: Non-executive Director of Engineering Group Resigns
NEWMEDIA SPARK: Reveals Preliminary Results Ending March 31, 2002
MARCONI PLC: Sells Imaging Electronics Unit for GBP 50MM
P&O PRINCESS: Notification of Major Interests in Shares
TELEWEST COMMUNICATIONS: Will Get GBP10MM From Way Ahead Stake
XENOVA GRP PLC: Successful Results of Phase I Trial for TA-NIC


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


CARGOLIFTER AG: Subsidiaries Follow Parent Into Insolvency
----------------------------------------------------------
In the course of CargoLifter AG's inability to pay, also the
respective management of its subsidiaries CargoLifter World GmbH,
CargoLifter MAP GmbH, CargoLifter Airship Operations GmbH and
CargoLifter Industrial Logistics GmbH applied for the opening of
insolvency proceedings at the Cottbus District Court, the airship
maker announced Friday.

Prof. Rolf-Dieter Moenning has been appointed by the court as the
interim administrator. The companies continue their operative
businesses. This also concerns the visitors' center on the hangar
site in Brand.


DEUTSCHE TELEKOM: Proposes 3.8% Salary Increase as of July 1
-----------------------------------------------------------

Now at its third stage in its negotiations, Deutsche Telekom on
June 10 the telecoms group presented ver.di, the unified service
sector union (Vereinte Dienstleistungsgewerkschaft) with a
proposal.

The wage increase proposal will take place in two stages. Based
on the collective agreement which expired on April 30, 2002,
wages would be increased by 3.8% from July 1, 2002.

From this increase, 2.8% shall be applied to monthly pay and the
special payment, and 1% shall be used to increase performance-
based pay. A further increase of 3% in monthly pay is planned for
May 2003. The collective agreement shall run until April 30,
2004.

Remuneration for trainees is to be increased at the same rate as
the monthly pay of employees. A placement and qualification unit
is to be set up as a platform to secure employment for the
future.

This includes collective agreements governing entry and exit
rules, the aim of which is to accelerate the existing procedures
and to make them more transparent and manageable.

The number of trainees for 2003 shall be stabilized at the 2002
level of 4,000. Trainees who successfully complete their training
will, subject to individual suitability and nation-wide mobility,
be taken on in the placement and qualification unit for a fixed
period of twelve months with the aim of placing them in permanent
positions in the Group.

Various agreements are to introduce greater flexibility into the
existing flexitime accounts. These would then, for example, make
it possible to use working time credit in the case of a
collective reduction in working hours to balance out wage
reductions as part of the alliance for jobs.

These alliances would also allow special pay regulations to be
made on the basis of pay rate conditions that have yet to be
defined. According to the "principle of dual voluntary action",
it would in addition be possible to transform working time credit
into long-term accounts.


HELKON MEDIA: Will Leave Neuer Markt Due to High Cost of Listing
----------------------------------------------------------------
German film distribution group Helkon Media will start trading in
the regulated market next month.  The company is blaming
exorbitant fees for listing in the Neuer Markt as its reason for
delisting from said index, Borsen-Zeitung says.

The company will be delisted from the Neuer index on June 28.
Last month, the company, which briefly faced insolvency at the
end of 2001, lost its CEO and co-founder Martin Heldmann who
resigned.

In February, the company announced that it had secured an
additional EUR20 million from creditor banks Vereins- und
Westbank AG and Stadtsparkasse Koln, guaranteeing the
continuation of the Company's restructuring and cost reduction
program initiated last autumn.

At October 31, 2001, Helkon's balance sheet, while showing the
company to be solvent by EUR72 million, reflected a sizeable
EUR123 million working capital deficit, with current
liabilities outpacing current assets by a 3 to 1 margin.

Full-text copies of Helkon's annual reports, financial statements
and current press releases, in German and English, are available
at http://www.helkon.de


LANDESBANK SACHSEN: Acknowledges Weak Outlook, Profit Strain
------------------------------------------------------------
Struggling regional lender Landesbank Sachsen Girozentrale
forecasts profit for the year to end up at the same level last
year due to severe "pressure" in the sector where it operates.

The admission, which appeared in Borsen-Zeitung last week,
confirms the apprehensions of Moody's Investors Service, which
placed the bank's "C" financial strength rating on review for
possible downgrade.

The rating agency cited increasingly difficult operating
environment faced by German banks, and Landesbanken in
particular.

"Costs and revenues have been under pressure for some time,
affecting further [its] already modest profitability," Moody's
said in justifying its decision.

"Moody's cautioned that the short- to medium-term outlook for a
material improvement in profitability and financial strength is
not very encouraging.  In this context, Moody's review will
assess the appropriateness of the existing financial strength
ratings for the Landesbanken."

The rating agency said this banking sector "faces strategic
challenges in the years ahead, as the support mechanisms will
fall away after 2005, and the bank will feel even stronger
pressures regarding profitability for the years thereafter."

Landesbank Sachsen Girozentrale (without Saechsische Aufbaubank
GmbH), headquartered in Leipzig, had assets of EUR51.7 billion at
year-end 2001.


MOBILCOM AG: France Telecom, Banks Near Deal Over Debt Reprieve
---------------------------------------------------------------
France Telecom was expected yesterday to close a deal with
MobilCom's creditor banks, signaling that takeover of the German
mobile phone firm by the French minority shareholder is near.

"The banks are hoping to sign a memorandum of understanding on
the debt on Monday," an unnamed source told Total Telecom late
last week.

France Telecom has denied the report, but admitted that its talks
with the 17 banking syndicate is ongoing.  This discussion
centers on refinancing MobilCom's EUR4.7 billion banking loan,
which will fall due next month.

Sources of the industry paper say France Telecom will offer banks
EUR0.90 of France Telecom shares at the agreed conversion price
in 2003 for every euro of the loan, which MobilCom must refinance
by July 31 or face insolvency.

Following this deal, France Telecom is expected to buyout
nemesis, CEO Gerhard Schmid, who controls 40-plus percent of the
company.  The French group is also obliged to offer for the rest
of the minority shareholders under a new German takeover law.
Sources say the company will do so.

It is widely held that the deal with banks was necessary so that
France Telecom won't be adding more debts into its already hefty
bill.  The firm will be put under the control of Orange, France
Telecom's mobile phone arm.

Meanwhile, Mr. Schmid, who offered in March to step down if
France Telecom offers EUR22 for every share he holds, is expected
to be stripped of his post during the next meeting of the
supervisory board this Friday.

The chief has managed to survive attempts to oust him during the
last two board meetings, but insiders say Friday's vote will have
a different outcome.

France Telecom cut its cooperation agreement with MobilCom early
last week as a result of the chief's continued stay at the helm,
leading many to speculate that the German affiliate will succumb
to insolvency soon.


HERLITZ AG: Subsidiaries Will Not Liquidate, Says Administrator
--------------------------------------------------------------
Herlitz insolvency administrator Christoph Schulte-Kaubrugger
belies reports that three subsidiaries will be wound up instead
of allowing them to move on as a going concern.

Mr. Schulte-Kaubrugger, however, does not discount that some
parts of Diplomat, HKV and Susy Card will be sold, with the
profitable portions continued in "lifeboat" companies, according
to Financial Times Deutschland.

The report says there are several interested parties eyeing
subsidiaries of the German stationery manufacturer, whose formal
insolvency procedure is expected to begin July 1.  The three
units employ a total of 150 employees.

Meanwhile, the company is reportedly getting positive response
from retailers, whom the firm has urged to assume some of service
the costs during the coming Christmas shopping period.

The company expects to exit from insolvency as early as mid-July,
as creditors are reportedly amenable to the recovery plan
prepared by its insolvency administrator.

Citing Borsen-Zeitung, Troubled Company Reporter-Europe recently
said creditor banks will waive roughly EUR40 million of loans and
will takeover "superfluous properties" of the company.  The paper
said remaining debts will total about EUR80 million when the firm
leaves the court.

Herlitz' debts amount to EUR400 million, of which EUR300 million
is owed to a banking consortium led by Bayerische Hypo-und
Vereinsbank, TCR-Europe said.

The company expects to turn in a profit this year, largely due to
cost-savings, which will partly be the result of the court's
decision to relieve the company of wage and interest payments for
two months.  The company targets a turnover of EUR411 million,
TCR-Europe said.

Herlitz reported losses of roughly EUR52 million in 2001 and
filed for bankruptcy on April 2 before the district court in
Charlottenburg.  The company included in its petition subsidiary,
Herlitz PBS.  Herlitz FOP in the brandenburgischen Peitz, which
employs approximately 750 workers, and its Czech subsidiary were
not affected by the parent's insolvency.

Banks granted the company EUR15 million in emergency loan after
submitting its petition, the paper said.


KIRCHMEDIA: Publishing Firms to Challenge Commerzbank-led Bidders
-----------------------------------------------------------------
Another consortium is looking to enter the race for KirchMedia,
challenging the group composed of Commerzbank, WAZ Gruppe and
Columbia TriStar, a unit of Sony Corporation.

The new group, according to Handelsblatt, is composed of
publishing giants Axel Springer Verlag AG and Heinrich Bauer
Verlag AG.  An unnamed bank is allegedly joining the bloc, says
the paper.

Industry insiders believe this group is primarily interested in
the 52.52% stake held by KirchMedia in ProsiebenSat.1 Media AG,
Germany's leading free-TV network.  Already, Heinrich Bauer holds
an interest in RTL 2, a rival network.

Andreas Fritzenkotter, spokesman for Heinrich Bauer did not deny
this: "Our main interest is in ProSiebenSat.1 Media AG."

People close to the two publishing firms say the group is open to
combining forces with the other consortium.

Aside from these big blocs of buyers, a French television
broadcaster admitted last week to be interested in bits and
pieces of the company.  TF1 CEO Patrick Le Lay admitted to the
Financial Times that he was personally seeking for partners to
assemble a viable offer.

TF1 is controlled by French construction group Bouygues, says the
paper.  Experts estimate KirchMedia to be worth around EUR1.9
billion.

Meanwhile, company insiders confirmed Sunday that KirchMedia's
insolvency proceeding will open today.


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


FIAT SPA: Chair Says Falling Demand Undermines Group's Cashflow
----------------------------------------------------------------
In his first statement to employees following the resignation of
CEO Paolo Cantarella, Fiat SpA Chairman Paolo Fresco admitted
that the company's cashflow is deteriorating due to weakening
market demand.

In a memo addressed to all 260,000 employees of the industrial
giant, the chairman said the group must now intensify disposals
"to cut indebtedness drastically."

"The group has been severely penalized in the markets in which it
operates... Because our capital investment cannot be fully funded
from cashflow our financial position has deteriorated," said the
memo, a copy of which was obtained by the Financial Times.

"We have charted a course.  We must now follow it without
wavering," the Chairman said in concluding the memo.

Mr. Fresco, however, clarified that the debt-reduction strategy
was not a precursor to the possible future disposal of Fiat Auto
to General Motors.

Mr. Cantarella left the company last week after 25 years of
service.


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


HAGEMEYER: CFO James Riddell Will Step Down on August 31
--------------------------------------------------------
Dutch Specialty retail group Hagemeyer NV announced June 13 that
Mr. James Riddell, will step down as chief financial officer as
of August 31, and will be replaced by Hollandsche Beton Groep NV
CFO Tjalling Tiemstra.

Mr James H. Riddell, Chief Financial Officer, member of the Board
of Management and of the Executive Committee, has expressed his
intention to step down as per August 31, 2002.

Riddell said he is returning to the UK to spend more time with
his family.

As from August 1, 2002, Mr Tjalling Tiemstra, who is 49 years
old, will take over his position as CFO and member of the
Executive Committee. Mr Tiemstra will be proposed for appointment
as a member of the Board of Management of Hagemeyer N.V. in the
next Annual General Meeting of Shareholders.

James Riddell said: "Significant progress has been made with
Hagemeyer's change program. Since we have been fortunate to
attract a qualified successor the time is right for me, after
handing over my responsibilities to Mr Tiemstra, to return to the
U.K., which will allow me to spend more time with my family."

Mr Riddell will continue to be employed as an advisor to
Hagemeyer's Board of Management until early 2003.

Mr Tiemstra will join Hagemeyer from HBG where, since October
2001, he holds the position of CFO. Previously he was employed by
Unilever in senior financial and general management positions.


KPNQWEST NV: Will Let Independent Auditor Settle Dispute With KPN
-----------------------------------------------------------------
Insolvent KPNQwest NV and key shareholder Royal KPN NV have
agreed to bring their dispute over how much the latter owes the
company to an independent auditor, says Total Telecom.

The report did not state whether the two firms already have an
auditor in mind.  The company claims that its eponymous
shareholder owes it EUR23 million.  The Dutch telecom incumbent
denies this.

Last week, trustees of the company threatened to shutdown the
firm's network, which could have resulted in a Europe-wide
Internet crash had clients with outstanding dues failed to heed
the call to pay-up.

Total Telecom says Royal KPN "transferred" some EUR8.8 million to
KPNQwest last week to keep the network running until the end of
the month.  The industry paper did not state whether this was for
payment of its dues or not.

The company needs to close an asset sale before July to keep its
network up and afford clients enough time to look for alternative
data carriers.  As much as 40 bidders had reportedly tabled an
offer last week for either part or the whole of KPNQwest,
Troubled Company Reporter-Europe said yesterday.


KPNQWEST NV: Ebone Segment Based in Belgium Attracts Three Bids
---------------------------------------------------------------
At least three have offered to buy the 'Ebone' portion of
KPNQwest's backbone network, according to operations engineer
Graham Kinsey who told Total Telecom that one had even guaranteed
them their jobs if said buyer wins.

Mr. Kinsey, one of many sacked employees currently keeping the
Belgium operations running without pay, did not name the buyer,
but described it as a European consortium.

"We are hopeful of a positive outcome on Monday... The buyer
received our accounts on Thursday afternoon and submitted an
offer within two hours," Mr. Kinsey told Total Telecom late last
week.  He did not reveal how much money the buyer offered.

KPNQwest acquired the Ebone business in March from Global
TeleSystems, Inc.  As part of the acquisition, KPNQwest issued
approximately EUR211 million of 10% convertible bonds due 2012 to
former GTS bondholders and assumed an approximate EUR435 million
of net bank debt and capital lease obligations.

The acquisition consolidated KPNQwest's position as the leading
IP data communications provider in Europe.  The company filed for
insolvency three weeks ago.


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


STOCZNIA SZCZECINSKA: Bankruptcy Filing Soon, Says Chairman
-----------------------------------------------------------
Polish shipyard Stocznia Szczecinska, the biggest of about 30
companies held by Porta Holding SA and privatized in 1992, is
going to file for bankruptcy some time soon, says The Deal.

The company announced the move Friday after banks declined a
request for a bailout package.  The plan, which would have
forgiven 80% of the company's debts, was opposed by four of the
seven members of a banking syndicate owed US$293 million.

A source told The Deal that the banks lost confidence in the
shipyard management after funds from a loan granted to produce a
new ship were used instead to fix defects in three other ships
under construction.

"Earlier, a group of Polish investors who held 43.5% of the
shares of the shipyard agreed to turn them over to the state for
a symbolic PLZl1 (25 cents) in exchange for its re-
nationalization, a step meant to guarantee a US$40 million loan
to restart production and pay laid-off workers back wages," The
Deal said.

But analysts interviewed by the paper say bankruptcy may yet be
the best way for the company to survive.  The shipyard claims it
needs just US$277 million to complete construction of 16 vessels
that can be sold for US$310 million.

"Bankruptcy is the best way.  It will allow establishment of a
new investment vehicle which can organize production in
cooperation with the [bankruptcy] receiver," Robert Gwiadowski,
an economist at the Adam Smith Center, an independent think tank,
told The Deal in an interview.

The company, which employs 3,000 workers, is one of three major
Polish shipyards and the country's early success story following
the fall of Communism.  It's woes started last year, spurred by a
strong currency that hurt export and the global economic slowdown
that slashed ship prices by 25%.

March saw the suspension of production, after the consortium of
seven banks cut off further lending in October.  The government
re-nationalized the shipyard last month, The Deal says.

"There is a possibility to start production based on one of the
companies which will be taken over by the Treasury.  This company
would be without any debt," Economy Minister Jacek Piechota told
a gathering of workers Friday.  He also promised payment of back
wages on June 25 through a special fund set up after the
government re-nationalized the shipyard.

Still, the government, which owns 10% of the shipyard, fears that
the company's woes would spill over to other major companies such
as Cegielski SA, a key manufacturer in Poznan that builds ship
engines and is owed US$100 million by the Szczecin yard, The Deal
says.

Stocznia Szczecinska Chairman Zbigniew Karkota, who brought the
news of the imminent bankruptcy filing, also announced that he
would step down.


===========
R U S S I A
===========


SIBUR: Will Elect Gazprom Recommendees to Board in AGM Next Week
----------------------------------------------------------------
The board of Siberian-Ural Petrochemical Company (SIBUR) is
expected to have fresh faces after the company emerges from its
annual meeting Wednesday next week.

According to RosBusinessConsulting, shareholders are expected to
elect nine candidates recommended by Gazprombank and Gazprom.
Early this month, the board also replaced former President
Vyacheslav Skvortsov with Dmitry Mazepin.  Mr. Skvortsov resigned
on May 30, along with Chief Accountant Olga Yermoshina.

In this connection, shareholders will be asked to set up an audit
commission and elect an auditor.  Shareholders are advised to
select PricewaterhouseCoopers for the job.

Major shareholders of the company are Gazprom (50.66%), SIBUR-
Tyumen (15.85%) and the Gazoneftekhimicheskaya oil and gas
company (14.22%).

Two weeks ago, Mr. Mazepin announced that he will ask creditors
to allow the company to get external loans and be able to work on
the company's share capital before the Arbitration Court of the
Yamalo-Nenets Autonomous Area will consider its receivership on
July 4, 2002.

According to RosBusinessConsulting, the hearing next month is
related to the company's appeal on the move by creditors on April
15 to put the petrochemical group in receivership. The creditor
committee appointed Mikhail Fomenkov as the group's receiver.

Last month, Siber International Ltd. transferred its 24.8% stake
in Hungarian petrochemical firm BorsodChem Rt to Milford Holdings
Ltd., an Ireland-based acquisition unit of Russian energy giant
OAO Gazprom.

Citing Budapest Business Journal, TCR-Europe said the move was
believed to be part of SIBUR's plan to repay debts owed to
Gazprom, which instituted bankruptcy proceedings against it early
this year.

In a February report, TCR-Europe bared that SIBUR owes Gazprom
some US$800 million in loans and other debts. An examination of
the company's books following the insolvency petition showed it
had also incurred several unexpected obligations with other
firms.


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


CELLPOINT INC: Management Changes at Mobile Technology Provider
---------------------------------------------------------------

CellPoint Inc. -- www.cellpoint.com --, a global provider of
mobile location software technology and platforms, announced
Thursday that Stephen Childs is the Company's new Chairman of the
Board and Carl Johan Tornell has taken over the day-to-day
operations from Mr. Childs as President of the Company.

Stephen Childs, will succeed Jan Rynning as the Chairman of the
Board. Mr. Rynning, a Swedish lawyer specializing in
reconstruction, served as Chairman through the recent financial
reconstruction of the Company.

Mr. Childs has been a director of CellPoint since May of 2000 and
has more than 15 years of international experience in the
telecommunications industry. Before joining CellPoint, he was
Group Director, New Business Ventures with Orange plc. Prior to
this, Mr. Childs served as Vice President International Business
Development with Deutsche Telekom and as CEO of Pakcom. "Now that
the restructuring of CellPoint has been completed successfully,
the Company can refocus on strategic and commercial
opportunities," said Stephen Childs, Chairman and CEO.

Carl Johan Tornell will take over from Mr. Childs as the
President of CellPoint. Mr. Tornell has been with Tornell and
Partenaris, where he was involved in numerous strategic and
corporate advisory activities.

Prior to this, Mr. Tornell served as Managing Director of Corona
Petroleum, a publicly traded company. "Through my external
involvement with CellPoint over the past year, I have seen
CellPoint as a world leader in the development of commercial
location services for business and consumer markets, and I am
very excited about the opportunity to bring my experience and
focus to this team," said Tornell. "The addition of Carl Johan
Tornell marks an important step in the evolution of CellPoint
from a development company to a commercial company," added
Childs.

CellPoint has also hired additional senior management recently.
Richard Batty has been hired as the Vice President of Sales and
D. Shawn Rogers as Vice President of Communications. Richard
Batty was formerly the Global Account Director for Comverse
Technology Inc., a world leading supplier of software and systems
enabling network-based multimedia enhanced communications
services where he was responsible for a global sales unit
accountable for over 100 hundred million dollars in sales.

D. Shawn Rogers served as Managing Partner for Celeritas Group
and also worked with Madison Securities in Chicago, were he was
involved in several financings for CellPoint and has followed the
Company very closely for over three years.

CellPoint Inc. is a leading global provider of location
determination technology, carrier-class middleware and
applications enabling mobile network operators rapid deployment
of revenue generating location-based services for consumer and
business users and to address mobile E911/E112 security
requirements.

CellPoint is a global company headquartered in Kista, Sweden.

Contact Information:

D. Shawn Rogers
VP of Communications
CellPoint Inc., USA
Telephone: 312-593-6870


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


BIG FOOD: Seeks Approval for GBP 129.3MM Sale, Leaseback Deal
-------------------------------------------------------------
The Big Food Group plc announced Friday that the resolution to
approve the sale and leaseback of 31 of its properties to AXA for
a total cash value of approximately GBP129.3 million was duly
passed at the extraordinary general meeting held on June 14.

The Big Food Group plc conditionally placed GBP150,000,000
principal amount of its 9.75 % Senior Notes due 2012. The Group
expects to complete the sale and leaseback, conclude the issue of
its Senior Notes and draw funds under the new Senior Debt on or
around the June 18.

A copy of the resolutions to approve the sale and leaseback has
been submitted to the UK Listing Authority and will shortly be
available for inspection at the UK Listing Authority's Document
Viewing Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Telephone: 020 7676 1000


CONSIGNIA: CEO John Roberts Retires by End of 2002
--------------------------------------------------
John Roberts, Chief Executive of Consignia -- www.consignia.com -
-, announced June 13 that he would be retiring from the company
later this year.

In a personal statement, Mr Roberts, who is 57, said he had first
discussed his retirement with Board colleagues nearly 18 months
ago. He said that a complication arose when the then Chairman's
contract ran out in December 2001 and up until that month, it
became unclear whether he would be re-appointed or not.

As it will take some months to appoint a new Chief Executive, Mr.
Roberts shall remain at Consignia until about the end of the
year.


CORDIANT COMMUNICATIONS: Notification of Interest in Shares
-----------------------------------------------------------
London-based advertising firm Cordiant Communications Group plc
was informed that on June 14, 2002 Active Value Fund Managers
Limited has a holding of 20,515,000 ordinary shares, representing
5.04% of the issued share capital of the Company.


ENERGIS PLC: Investors Want Bondholders' Debt-to-Equity Proposal
----------------------------------------------------------------
Shareholders urged the board of Energis Plc during the group's
recent assembly to opt for a debt-for-equity swap, instead of the
alleged buyout offer made by private equity companies.

According to Bloomberg, majority of investors are allegedly
opposed to the idea of selling the company, in part or whole, to
venture capitalists for a pittance.  Various accounts say that
said buyers are only offering less than the GBP690 million the
company owes banks.

"My mandate as a shareholder is: go for a debt-for-equity swap
and don't let the venture capitalists get this company for a
knockdown price," Reg Ling, a private investor who wouldn't
specify how many shares he holds, told Bloomberg in an interview.

The report says bondholders are owed GBP565 million.  It is not
known how much of a majority will these noteholders get if the
board eventually chooses the bond-equity swap.  The board,
meanwhile, has not given any indication about its preference.
Neither did it put the matter to a vote.

Referring to the proposal for the debt-for-equity swap, Bloomberg
quoted Chairman Gordon Owen saying: "I can't say that will be the
case."

It is believed that Apax Partners, the Carlyle Group and Permira
have joined forces to prevent an escalation of the amount of
bids.

The company's woes began in January when earnings fell below
agreed levels after a huge decline in prices for wholesale
telecoms capacity.  The auction process was opened February after
the firm said it might breach banking covenants.

Bondholders, who saw the value of their investment drop to less
than 10% of its original value, formed a negotiating group and
approached the company to discuss a debt restructuring.  They
also moved to keep money in the company by agreeing to forego a
GBP13.7 million-coupon payment due March 15, on which the company
had defaulted.


INDEPENDENT INSURANCE: Deal With Brokers Extended Until June 26
---------------------------------------------------------------

Dan Schwarzmann, one of the joint provisional liquidators of
Independent Insurance Company Limited has announced Friday an
extension to the acceptance deadline for the marketwide broker
deal following yesterday's meeting in Birmingham and subsequent
discussions with members of the broker representative group.

The joint provisional liquidators believe this deal represents a
fair solution for all parties.

Dan Schwarzmann commented:

"A significant number of brokers have presented good reasons for
a short time extension to the deadline for acceptance of the
marketwide deal. As a final gesture of goodwill from the joint
provisional liquidators, we have agreed to extend the deadline to
the close of business on Wednesday June 26, 2002.

"No further extension to the deadline will be made."

This deal is conditional on there being full support from
brokers.

Contact Information:

Dan Schwarzmann
Partner
PricewaterhouseCoopers
Telephone: 020 7804 5067

Lorna Siddall
PricewaterhouseCoopers
Telephone: 020 7213 4731


INVENSYS PLC: Non-executive Director of Engineering Group Resigns
-----------------------------------------------------------------

Invensys plc announces that Paolo Scaroni has stepped down as a
non-executive director with immediate effect.

Paolo Scaroni joined the Invensys Board on May 1, 2002. He was
subsequently appointed as Chief Executive of Enel, Italy's
largest integrated electricity group, based in Rome.

Lord Marshall, Chairman of Invensys plc, said:

"We are sorry to lose the services of Paolo Scaroni. However, his
circumstances have changed in a manner that he could not have
foreseen and in his view the scope and location of his new role
make it impossible for him to fulfill his duties as a non-
executive director
of Invensys. We wish him every success at Enel."

Contact:

Invensys plc
Duncan Bonfield
Telephone: +44 (0) 20 7821 3529

Brunswick
Ben Brewerton
Telephone: +44 (0) 20 7404 5959


NEWMEDIA SPARK: Reveals Preliminary Results Ending March 31, 2002
-----------------------------------------------------------------
Business and Financial Highlights:

- SPARK's net assets as at March 31, 2002 were GBP61.6 million
(2001, GBP207.7 million) representing 13.0p per share (2001,
41.7p). 26.4 million shares were cancelled in the period reducing
issued share capital to 472.0 million shares (2001, 498.4
million).

-The Group has accounted for further substantial portfolio write-
downs. 40 companies out of a portfolio of 68 companies continue
to be ascribed a total value of GBP38.8 million (2001: GBP109.7
million for 56 companies).

The two largest investments are now SPARK's 11.36% holding in
Tullett & Tokyo Liberty plc (book value GBP7.3 million) and its
38.46% holding in Synaptics Ltd (book value GBP2.9 million).

- Cash balances have been rising since September 30, 2001 (at
which time SPARK reported balances of GBP35.0 million) due to
portfolio realizations and tight control over new expenditure
levels.

As at March 31, 2002, the Group had cash balances of GBP41.8
(2001, GBP76.6 million), plus restricted cash balances of GBP5.5
million (2001, GBP3.4 million).

- A number of SPARK's portfolio companies continue to make good
progress. Fourteen portfolio companies attracted independent
third party investment in the year and six portfolio companies
were sold.

- The Group continues to focus on controlling expenditure and is
in the process of reducing staff by over 50% to approximately 16
employees. The remaining senior executives are accepting an
aggregate 30% salary reduction.

- SPARK's Board is considering its strategic and financial
options to maximize shareholder value, including returning
surplus cash to shareholders. Court permission is to be sought
for SPARK to buy its own shares, either in the market or via
tender offer.

Commenting on the results, Mike Whitaker, CEO of SPARK, said: "It
is clear that in present market conditions SPARK must adjust its
course and that radical action is required to maximize
shareholder value.

"We are therefore instituting further very substantial cost cuts,
closely controlling new expenditure and exploring ways of
returning surplus cash to shareholders. SPARK's Board is also
considering other strategic and financial options".

Consolidated Statement of Total Recognized Gains and Losses
Year Ended March 31, 2002

                             Year ended         Year ended
                             March 31, 2002     March 31, 2001
                             GBP'000            GBP'000
                             Unaudited          Audited

Loss for the year               (104,248)          (46,004)
Unrealised loss on investments   (48,570)          (32,873)
Previously unrealised losses
   now deemed permanent           10,036                 -
Deemed remuneration on transfer
   of founder warrants               119                 -
Minority interest share of
   revaluations                        -             6,007
Exchange differences                (457)           (7,444)

Total recognized gains and
  losses relating to the period (143,120)          (80,314)


Consolidated Profit & Loss Account
Year Ended March 31, 2002


                             Year ended         Year ended
                             March 31, 2002     March 31, 2001
                             GBP'000            GBP'000
                             Unaudited          Audited


Turnover                              3,008                  -
Administrative expenses:
- Salaries, other staff costs        8,537              2,941
- Administrative and operating costs 6,995              3,281
- Amortization of positive goodwill 15,661              2,214
- Amortisation of negative goodwill(10,007)               (56)
- Depreciation                         967                 91
- Other costs                        3,551                846

Total administrative expenses        25,704              9,317

Other operating income                1,143                857
Operating loss                      (21,553)            (8,460)
Loss on investments                 (85,859)           (40,851)
Interest receivable,similar income    2,408              3,059
Loss on ordinary activities
  before taxation                  (105,004)           (46,252)
Tax on loss on ordinary activities   (1,090)               (15)
Loss on ordinary activities
  after taxation                   (106,094)           (46,267)
Equity minority interests             1,846                263
Retained loss for the year         (104,248)           (46,004)
Loss per ordinary share             (22.32p)           (13.48p)
Diluted loss per ordinary share     (22.32p)           (13.48p)


In the year ended March 31, 2002, acquired businesses contributed
GBP5.512 million of operating profit to the Group results.

Consolidated Balance Sheet
Year Ended March 31, 2002
                             Year ended         Year ended
                             March 31, 2002     March 31, 2001
                             GBP'000            GBP'000
                             Unaudited          Audited
Fixed Assets

Intangible assets
  - Positive goodwill                1,338             16,999
  - Negative goodwill               (4,044)              (718)
Tangible fixed assets                2,442              1,440
Investments                         38,816            109,731
                                    38,552            127,452



Current Assets
Debtors                              8,696              5,349
Current asset investments              988                  -
Cash at bank and in hand            41,782             76,568
                                    51,466             81,917
Creditors: amounts falling due
   within one year                 (10,160)            (1,541)
Net current assets                  41,306             80,376
Total assets less
   current liabilities              79,858            207,828
Provisions for liabilities
   and charges                      (3,684)                 -
Equity minority interest           (14,593)              (144)
Net Assets                          61,581            207,684

Capital and reserves
Called up share capital             11,799             12,459
Share premium account              183,365            247,113
Revaluation reserve                (47,336)            (8,802)
Capital reserve                      8,391              8,391
Profit and loss account            (94,638)           (51,477)
Equity shareholders' funds          61,581            207,684


MARCONI PLC: Sells Imaging Electronics Unit for GBP 50MM
--------------------------------------------------------
Marconi Plc, the struggling British telecom equipment maker, is
selling its imaging electronics unit Marconi Applied Technologies
to 3i Group Plc, The Sunday Times said.

The transaction is expected to raise GBP50 million and was set to
be announced yesterday, the paper said.  This unit has offices in
Canada and France.

Since plunging into severe financial turmoil, the company has
raised GBP1.4 billion from asset disposals.  Recently, the
company also announced that it will float its Italian-based
Strategic Communications business on the Milan Stock Exchange in
a move to further whittle down its GBP2.9 billion debt.

Citing the Financial Times, Troubled Company Reporter-Europe said
the Italian unit was originally put up for sale in February at an
estimated price tag of GBP400 million.  It is considered one of
the few remaining non-core assets of any value.

Employing 4,000 people in Italy, the U.K., Germany and Turkey,
the unit manufactures communications systems for the defense
sector.  It had sales of GBP300 million in the year to March 31,
2002, TCR-Europe said.

In the 12 months to March 31, the group absorbed pre-tax losses
of GBP5.6 billion, partly due to goodwill amortization and
exceptional items totaling GBP5 billion.  The group, though, had
positive operating cash flow of GBP365 million, some of which is
likely to be returned to creditors, TCR-Europe said.

Marconi owes GBP2.2 billion in syndicated loans with banks and
GBP1.8 billion in bonds.  It is currently studying a debt-for-
equity swap.


P&O PRINCESS: Notification of Major Interests in Shares
-------------------------------------------------------

P&O Princess Cruises plc was informed Friday that
Legal & General Investment Management, on behalf of its affiliate
companies, declares that it has 3.14% of interest in ordinary 50c
shares of issued by P&O Princess as follows:

HSBC Global Custody Nominee (UK) Ltd A/c 886609 1,607,700
HSBC Global Custody Nominee (UK) Ltd A/c 775245 3,181,890
HSBC Global Custody Nominee (UK) Ltd A/c 754612 100,020
HSBC Global Custody Nominee (UK) Ltd A/c 252605 405,230
HSBC Global Custody Nominee (UK) Ltd A/c 360509 536,832
HSBC Global Custody Nominee (UK) Ltd A/c 357206 15,770,892
HSBC Global Custody Nominee (UK) Ltd A/c 866197 65,691
HSBC Global Custody Nominee (UK) Ltd A/c 904332 60,600

Total holding following this notification: 21,728,855 ordinary
shares


TELEWEST COMMUNICATIONS: Will Get GBP10MM From Way Ahead Stake
--------------------------------------------------------------

Telewest Communications plc has agreed to dispose of its 75.6 %
interest in the ordinary share capital of The Way Ahead Group
Limited to Way Ahead Finance Limited, a wholly owned subsidiary
of Stoll Moss Group Holdings Limited, which trades as Really
Useful Theatres, the group announced Friday.

Way Ahead is one of the U.K.'s leading ticketing agencies. It
reported profits for the year ended December 2001 of GBP1.67
million.

The consideration due to Telewest for its interest in Way Ahead
will be GBP10 million, to be paid in cash. It is Telewest's
intention to use the proceeds from the disposal for capital
expenditure in relation to its business.

Way Ahead, the U.K.'s leading retailer of Rock & Pop and
Exhibition tickets currently processes in excess of 2 million
tickets per annum for events nation-wide through a variety of
retail channels including call centre, internet, mobile telephone
and interactive television.

Telewest Communications, the broadband communications and media
group, currently passes 4.9 million homes and provides multi-
channel television, telephone and internet services to around 1.8
million U.K. households, and voice and data telecommunications
services to around 73,600 business customers.

Its content division, Flextech, is the biggest provider of basic
channels to the UK pay-TV market and is the BBC's partner in
UKTV, which has a portfolio of pay-TV channels based on the
corporation's programming, including UK Gold.

Contact Information:

Telewest:

Mary O'Reilly
Telephone: 020 7299 5115

Brunswick:
Craig Breheny
Telephone: 020 7396 7429


XENOVA GRP PLC: Successful Results of Phase I Trial for TA-NIC
----------------------------------------------------------------

Xenova Group plc -- www.xenova.co.uk -- announced Friday that
analysis of safety and preliminary immunogenicity data from a
Phase I trial for the anti-nicotine vaccine, TA-NIC, has shown
the vaccine to be safe and well tolerated both systemically and
locally and that the vaccine generated a specific anti-nicotine
response.

This double-blind, randomised, placebo-controlled study was
designed to assess the safety, tolerability and immunogenicity of
the TA-NIC vaccine in both smokers and non-smokers.  The vaccine
was administered by intra-muscular injection and investigated at
two different dose levels in a variety of dosing regimens.

TA-NIC is one of two Xenova anti-addiction product candidates
undergoing clinical trials.  An anti-cocaine vaccine, TA-CD, is
currently in Phase II clinical development.

Speaking last June 13 at the 64th Annual Scientific Meeting of
the College on Problems of Drug Dependence, in Quebec, Canada, Dr
John St Clair Roberts, Medical Director of Xenova, commented:

"These preliminary results have shown that TA-NIC is both safe
and well tolerated in the 60 smokers and non-smokers who took
part in the trial, and that it is capable of generating
antibodies which specifically bind to nicotine.  We believe this
is potentially important in preventing nicotine from reaching the
brain, and therefore in addressing the problem of nicotine
dependence.  The results are extremely encouraging and will help
format our future clinical development programme."

Xenova also announced that on June 14, its gene-therapy-based
oncology product, DISC-GMCSF, has completed a Phase I trial.  The
dose-escalating safety study was carried out in a total of 9
patients with metastatic melanoma at three centers in the UK.
DISC-GMCSF was injected directly into superficial lesions.

Following assessment of the trial results, DISC-GMCSF was found
to be well tolerated, with no serious adverse events reported.
The DISC vector was shown to be localised at the site of
injection and had not spread beyond the required therapeutic
area, as demonstrated by the lack of detectible DISC-GMCSF
elsewhere in the body, a key objective of the study.

Preclinical data for DISC-GMCSF was published in July 2001 and
showed DISC-GMCSF to be well tolerated.  Preclinical models have
also shown DISC-GMCSF to have efficacy in models of breast and
colorectal cancer.

David Oxlade, Chief Executive of Xenova, commented: "We are
encouraged by the good safety profile shown by both of these
products during their respective trials. This is the first time
that a vaccine to treat nicotine dependence has been tested in
man and we are particularly encouraged that TA-NIC has been shown
to produce a specific anti-nicotine immune response."

Contact Information:

David A Oxlade, Chief Executive Officer
Daniel Abrams, Group Finance Director
Telephone: +44 0207 831 3113

                                     ************

         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, Maria Lourdes Reyes, Jean Claire Dy, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


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