/raid1/www/Hosts/bankrupt/TCREUR_Public/020628.mbx             T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Friday, June 28, 2002, Vol. 3, No. 127


                             Headlines

* F R A N C E *

ALCATEL SA: Recalls Positive Forecast for Year as Orders Drop
ALCATEL SA: Additional Restructuring Program Launched
ALCATEL SA: Completes Sale of Microelectronics Business  
ALCATEL SA: Will Provide PTC With UMTS Field Trial Network
ALCATEL SA: NextiraOne and Alcatel Targets Hospitality Industry  

* G E R M A N Y *

HERLITZ AG: Administrator Plans to Relocate Diplomat to Cunewalde
KIRCHGRUPPE: Axel Springer Shareholders Urged to Sue Own Board
PHILIPP HOLZMANN: Khalifa Buys Austrian, Dutch Foreign Activities
RTV FAMILY: Auditors Reveal Losses Over 50% in Capital Stock  

* H U N G A R Y *

GARDENIA RT: Board OKs Still Unspecified Asset Sales, Layoff Plan

* I T A L Y *

FIAT SPA: Mediobanca Offers Juicy Proposal for 35% Ferrari Stake

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

LAURUS NV: Enterprise Chamber Turns Down Request of Jelgersma
KPNQWEST NV: Deloitte Says Andersen Did Not Approve April Report
VERSATEL TELECOM: Taps Shearman & Sterling as Bankruptcy Counsel

* S W E D E N *

LM ERICSSON: Wins US$ 105MM GSM Contract With Mobtel in Serbia

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

SWISSAIR GROUP: Responsibility of Executive Bodies of SAirGroup

* U N I T E D   K I N G D O M *

ALBERT FISHER: Del Monte Buys Fisher Foods for Undisclosed Amount
COLT TELECOM: Announces Additional GBP 11MM Bond Buyback   
CORDIANT COMMUNICATIONS: Chairman's Trading Statement at AGM
GARTON ENGINEERING: Company Profile
VAUXHALL: Airport Operator Interested in Closed Luton Car Plant
WORLDCOM, INC: Company Profile
WORLDCOM, INC: Will Restate 2001, Q1 2002 Financial Statements
WORLDCOM, INC.: Moody's Cuts Rating to Ca, Doubts Recovery
WORLDCOM, INC.: Anxiety Sweeps Across Employees in European HQ
WORLDCOM, INC: Bernstein Liebhard & Lifshitz Files Class Suit
WORLDCOM, INC: Lovell & Stewart Initiates Securities Suit
WORLDCOM, INC.: Lovell Stewart Expands Class Period in Suit
WORLDCOM, INC: Kirby McInerney & Squire LLP Files Securities Case
WORLDCOM, INC: Rabin & Peckel LLP Begins Securities Class Action
WORLDCOM, INC: Glancy & Binkow LLP Files Class Action
WORLDCOM, INC: Stull Stull & Brody Files Securities Class Action
WORLDCOM, INC: Weiss & Yourman Begins Securities Class Action
WORLDCOM, INC: Marc S. Henzel Initiates Securities Class Action
WORLDCOM, INC.: Will Mount Vigorous Defense in Lawsuit in S.D. NY
XANSA PLC: Losses Jump to GBP500 MM From Just GBP 10MM Last Year


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


ALCATEL SA: Recalls Positive Forecast for Year as Orders Drop
-------------------------------------------------------------
Leading telecom equipment maker Alcatel SA has reversed its
earlier forecast to end the year in black, forcing investors to
bailout abruptly, reports Bloomberg.

"We're at panic level... This is not the end of the slide for
Alcatel," Boris Boehm, who helps manage about US$5.8 billion at
Nordinvest and sold some of his Alcatel stock Wednesday, told
Bloomberg.

The company announced Tuesday that it will shed 10,000 jobs to
counter the effects of falling orders.  The report says the group
has doubled the amount set aside to fire about 10% of its
workforce to EUR1.2 billion.  CFO Jean-Pascal Beaufret also
abandoned his previous prediction that sales will rebound in the
second quarter.

Shares dropped 16% to 7.81 euros following the announcement.  It
is the biggest since September 1998, says the news outfit.  But
despite this, CEO Serge Tchuruk remains confident of the
industry's prospects.

"When the operators reduce their spending, we take it full in the
face.  But I don't think they can brake capital spending as much
for very long," Mr. Tchuruk said.

During the past couple of weeks, several other equipment makers
have also warned of a deepening downturn.  Nokia Oyj, Luncent and
Ericsson AB have all cut their forecasts for the year.

Analysts interviewed by Bloomberg believe a downgrade on
Alcatel's debt ratings is forthcoming.  At present, Moody's and
Standard & Poor's rate the company "Baa2" and "BBB,"
respectively.  S&P has already placed Alcatel's rating on
CreditWatch.

Bloomberg says the company has EUR5.5 billion of outstanding
debt, and the securities already trade at levels more normal for
sub-investment grade debt.  

Meanwhile, the latest job cuts will trim the company's workforce
to just 80,000, down from 99,000 at the end of last year.  The
company aims to have around 70,000 employees by the end of next
year, the news agency says.


ALCATEL SA: Additional Restructuring Program Launched
-----------------------------------------------------
Alcatel announced Tuesday that despite further deterioration in
market conditions seen in recent weeks, with second quarter sales
about flat sequentially, income from operations for the second
quarter should as previously forecasted improve by more than EUR
100 million compared to the first quarter.

This is largely the result of on-going reduction of the fixed
cost base. In the current difficult environment, Alcatel
continues to further bolster its balance sheet.

Operating working capital should decline by more than EUR 800
million during the second quarter to under EUR 4.5 billion.
Operating cash flow for this second quarter should be positive.

For the second half of the year, the increased spending
constraints of service providers, as noticed in their last
announcements and expected future market softness should lead to
lower than previously expected business volume.

As a result, second half income from operations should not
contribute to reduce first half loss from operations. Operating
working capital should be reduced further during the second half.

OWC /sales ratio should be in the low twenties at the end of the
year. Alcatel is confident to be able to reduce its net debt at
year-end compared to December 31, 2001.

Due to the on-going reduction of the fixed cost base of Alcatel,
the quarterly break-even cost, which had been targeted at EUR 4.7
billion for 2002 is now anticipated to be under EUR 4.5 billion.

Moreover, given the continued deterioration of the business
environment, Alcatel is today launching additional restructuring
moves to accelerate the pace of costs reduction.

The new restructuring effort will lead to a quarterly break even
cost structure below EUR 4 billion on average in 2003. Alcatel
intends to book provisions related to the additional
restructuring, leading to a total amount of restructuring charges
of approximately EUR 1.2 billion recorded in 2002.

These figures exclude so far Shanghai Bell integration.

Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice, data
and multimedia, to any type of consumer, anywhere in the world.

Relying on its leading and comprehensive products and solutions
portfolio, stretching from end-to-end optical infrastructures,
fixed and mobile networks to broadband access.  

With sales of EUR 25 billion in 2001 and 99,000 employees,
Alcatel operates in more than 130 countries.


ALCATEL SA: Completes Sale of Microelectronics Business  
-------------------------------------------------------
STMicroelectronics and Alcatel announced on June 25, 2002, after
receiving approval from the EU and US anti-trust authorities, the
completion of the acquisition of Alcatel Microelectronics by
STMicroelectronics.

As part of this cash transaction of Euro 390 million, the two
companies are entering into a cooperation for the joint
development of DSL chip-sets that will also be made available to
the open market. The agreement will also make STMicroelectronics
a preferred supplier of Alcatel, thus expanding their long-
standing strategic alliance.

STMicroelectronics, the world's third largest semiconductor
company, is a global leader in developing and delivering
semiconductor solutions across the spectrum of microelectronics
applications. An unrivalled combination of silicon and system
expertise, manufacturing strength, Intellectual Property (IP)
portfolio and strategic partners positions the Company at the
forefront of System-on-Chip (SoC) technology and its products
play a key role in enabling today's convergence markets.


ALCATEL SA: Will Provide PTC With UMTS Field Trial Network
----------------------------------------------------------
Polska Telefonia Cyfrowa Sp. z o. o. (PTC), Poland's leading
mobile network provider, and Alcatel -- http://www.alcatel.com--  
announced last week they have conducted voice, data and video
communications on the UMTS trial system installed in Poznan by
Alcatel.

Numerous tests have confirmed the Alcatel's Evolium UMTS
infrastructure's ability in the area of high-speed data & video
transfers.

Whether for surfing the Internet (Web Browsing), having on-line
access to information, images or videos (Video Streaming), or for
transmitting video images from a remote Webcam. Alcatel's UMTS
trial system provides data rates of up to 384 kbit/s.

Thanks to a dedicated applications software platform from
Alcatel, Era is also able to test various 3G services including
Universal Mail Client, multi-access Personal Information
Management, Music Charts (MP3 music stream was replayed),
Community Board and Electronic Shopping List.

Under the terms of the MoU, Alcatel installed its complete
Evoliumo solution, comprising - among other things - the UTRAN
radio systems (UMTS Terrestrial Radio Access Network), the Core
network and Internet applications. The radio systems, including
the UMTS base stations (Node B), supplied by Alcatel were
developed and manufactured by Evolium SAS, a company owned
jointly with Fujitsu.

Wilhelm Stuckemann, Director Network Operation & IT, Member of
the Board of PTC said: " UMTS trials are important steps in PTC's
preparation for the next generation -for the future expected
growing demand for data intensive mobile services. The UMTS trial
gives PTC / Era first hand information about the capabilities of
UMTS technology prior to the decisions regarding roll-out of
commercial system. "
"This trial system is a significant success for Alcatel as PTC
has rapidly established itself as the leading mobile services
provider in Poland, indeed even in Central Europe. We are
extremely pleased to see our cooperation growing up", added Marc
Rouanne, President of Alcatel's Mobile Networks activities.

The Era's trial adds to the some 20 UMTS field trials networks in
operation or planned to be delivered by Alcatel in Europe and in
Asia by the end of June 2002.

Polska Telefonia Cyfrowa Sp. z o.o. - Era Network Operator
(www.era.pl) - is the biggest mobile operator in Central and
Eastern Europe and a Polish mobile market leader. The company has
over 4 million subscribers and users.


ALCATEL SA: NextiraOne and Alcatel Targets Hospitality Industry  
---------------------------------------------------------------
NextiraOne, LLC, a leading provider of network solutions and
services incorporating voice, data, and converged technologies
and Alcatel announced this week a joint effort to deliver
communications solutions to meet the unique needs of hoteliers.

The award-winning Alcatel OmniPCX 4400 IP-PBX and Alcatel's Omni
family of convergence-optimized switches can enhance guest and
administration services, help cut costs, generate income, and
simplify operations.

Rick Snyder serves as senior vice president, professional
services for NextiraOne, while Tom Wilburn is general manager for
Alcatel North America enterprise business

One of the key applications offered with the Alcatel OmniPCX 4400
is OmniTouch, a built-in multimedia contact center package that
is easy to deploy and manage, enabling hoteliers to optimize
customer interactions and improve customer service.

The scalability of this cost-effective contact center solution
allows hoteliers of any size to easily expand services as their
needs increase. Examples of such contact center services include
tracking quality of customer service, integrating with customer
databases and matching caller profiles via skills-based routing.

The Alcatel OmniPCX 4400 complements its comprehensive 500+
features by inter-working with third-party hotel applications
such as property management systems, call accounting and
voicemail/fax services. The Alcatel OmniPCX 4400 is capable of
interoperating with data switches and legacy PBXs from other
vendors, offering customers flexibility in a multi-vendor
environment.

With a wide range of experience in implementing voice, data and
converged technologies for some of the strongest U.S. hotel
operations. This hospitality solutions portfolio will now include
Alcatel's OmniPCX 4400.

Alcatel delivers standards-based IP communications solutions to
meets the needs of enterprises converging voice and data
networks. Based on a robust client/server UNIX architecture, the
Alcatel OmniPCX 4400 scales from 50 to 50,000 users offering a
rich set of enterprise-level telephony features from a range of
legacy and IP telephones as well as powerful, integrated
applications, such as messaging, mobility and multi-media contact
centers that can be centralized or distributed over many
locations.

Alcatel Omni-family of network infrastructure equipment and
security appliances provide the network foundation that supports
the quality of service, security, and management requirements of
highly available networks.

Headquartered in Houston, TX, NextiraOne is a leading provider of
network solutions and services. NextiraOne delivers world-class
solutions and life cycle services from planning and design,
through the implementation, support, and management of voice,
data, and converged communications networks.

As a nationwide service organization that carries an extensive
portfolio of certifications and product expertise, NextiraOne
provides best-in-class technologies from leading partners, such
as Alcatel, Nortel Networks and Cisco Systems.

NextiraOne -- http://www.NextiraOne.com-- offers consultation  
and solutions development ranging from contact center
applications to network infrastructure outsourcing. NextiraOne is
owned by Platinum Equity (www.peh.com), a global organization
specializing in the acquisition and strategic management of high-
tech companies.  


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


HERLITZ AG: Administrator Plans to Relocate Diplomat to Cunewalde
-----------------------------------------------------------------
Herlitz insolvency administrator Christoph Schulte-Kaubrugger is
planning to transfer 60 of the 140 Diplomat employees to another
company and continue its operations as an independent firm, says
Financial Times Deutschland.

Apparently, the move is part of making the insolvent Herlitz
subsidiary attractive to investors.  The report says Mr. Schulte-
Kaubrugger is also planning to transfer part of Diplomat's
business from Berlin to Cunewalde to ensure profitability.  This
unit manufactures writing equipment.

Meanwhile, according to the same report, discussions with
potential investors at Herlitz Kunststoffverarbeitung, the
plastic processing subsidiary, is progressing well.  This is one
of the reasons why the unit is not planning to suspend any of its
staff for now.

Employees at Herlitz' greeting card subsidiary Susy Card are also
relatively safe, the report says.

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


KIRCHGRUPPE: Axel Springer Shareholders Urged to Sue Own Board
--------------------------------------------------------------
A lawyer of Leo Kirch asked shareholders of Axel Springer to sue
their own board and main shareholder Friede Springer for
exercising a little-used clause in share law that eventually
brought down KirchGruppe.

In presenting his motion before the publisher's annual
shareholders meeting, Ronald Frohne argued that had management
opted to raise its share in ProSiebenSat.1, instead of exercising
a controversial put option, it would have earned EUR100 million
in book profit.

As it turned out, he said, the put option unnecessarily forced
KirchGruppe into financial ruins that ended in bankruptcy.  Now,
the EUR767 million put option is worthless, Mr. Kirch's lawyer
said.

"The board acted in the interests of the main shareholder, Friede
Springer, but not in the interests of the company and other
shareholders," Mr. Frohne, who represented Mr. Kirch during the
meeting, told other shareholders.  Mr. Kirch is the second
biggest shareholder in Axel Springer.

Handelsblatt did not say how the shareholders acted on the
motion, but CEO Mathias Dopfner deflected the accusation, saying
the put option was only exercised "after lengthy negotiations
failed to find an alternative solution."

"Axel Springer Verlag had no interest in weakening Kirch Group,"
the chief sternly said.

Mr. Kirch is now peddling his stake in Springer to repay a EUR720
million-loan to Deutsche Bank secured by the stake, Handelsblatt
says.

Axel Springer, on the other hand, is trying to increase its stake
in ProSiebenSat.1 and has teamed up with fellow publisher
Heinrich Bauer to try to bid for KirchMedia, the holding company
that controls Germany's leading free-TV network.

Mr. Dopfner says a decision on a bid would be taken in the coming
months.


PHILIPP HOLZMANN: Khalifa Buys Austrian, Dutch Foreign Activities
-----------------------------------------------------------------
The insolvency manager of the Philipp Holzmann AG, attorney
Ottmar Hermann, signed a sales contract Wednesday after intensive
and constructive negotiations with Rafik Abdelmoumen Khelifa,
president of the Algerian Khalifa Group, over the acquisition of
Holzmann's foreign business.

The purchse by Khalifa Group of the foreign operations of Philipp
Holzmann outside of the USA, Austria and the Netherlands will
save over 600 jobs.

The statement added that the new organization will begin on July
1, 2002 under the name Philipp Holzmann Khalifa GmbH with
headquarters in Isenburg, Germany.


RTV FAMILY: Auditors Reveal Losses Over 50% in Capital Stock  
------------------------------------------------------------
Due to a further deterioration of RTV's -- http://www.rtv-ag.de-
- distribution markets, RTV Family Entertainment AG undertakes
extraordinary depreciation in accordance with its auditors on the
film library and the affiliated companies.

The film portfolio and similar rights are reduced due to lower
forecasted sales revenues and ordinary depreciation by an amount
of about EUR 64 million and now amount to ca. EUR 51 Million.

The subsidiaries are devalued due to worsened market environment
respectively utilisation. These assets are reduced by an amount
of approximately EUR 36 Million.

In this context the 68% participation for the Australian
production studio Energee Entertainment was fully devalued.

The total depreciation amounts to approximately EUR 100 Million.
The entire paid-in capital and more than 50% of the capital stock
were eliminated.

As of today, RTV Family Entertainment AG has a capital stock of
about EUR 5.3 million. Thus, no over-indebtedness exists.

The company will according to statutory requirements summon an
extraordinary shareholders' meeting without delay due to the fact
that more than 50% of the capital stock was eliminated. This
meeting will presumably be held on August 12, 2002.

Contact Information:
RTV Family Entertainment AG
Torsten Weihrich

Telephone: +49 (0) 89 - 997271-17
Fax: +49 (0) 89 - 997271-92
Email: ir@rtv-ag.de


=============
H U N G A R Y
=============


GARDENIA RT: Board OKs Still Unspecified Asset Sales, Layoff Plan
-----------------------------------------------------------------
The board of Gardenia Rt has approved a far-ranging restructuring
plan that will cost an undisclosed number of jobs and several
assets, reports the Budapest Business Journal.

The board passed the measure after the company reported
potentially crippling losses of Ft438 million in 2001 from just
Ft59 million in 2000.  Management plans to complete the overhaul
before the end of this year.

According to the paper, the company has registered capital of
Ft1.2 billion and net assets of around Ft2.114 billion at the end
of 2001.  Hungarian Industries GmbH and its subsidiaries control
62.82% of Gardenia.

The lace-curtain producer is listed on the Budapest Stock
Exchange.


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


FIAT SPA: Mediobanca Offers Juicy Proposal for 35% Ferrari Stake
----------------------------------------------------------------
Investment bank Mediobanca is making Fiat SpA think twice about
its plan to float Ferrari later this year, says the Financial
Times.

The bank, a long-time partner, is offering to buy the 35% stake
in Ferrari for around EUR840 million, a source told the paper
Tuesday.  The bank is also planning to float the stakes, but only
next year.

The paper says the bank is now looking for institutional
investors to partner with it in bidding for the stake.  Analysts
say the offer is tempting because it values Ferrari at EUR2.5
billion, far higher than the EUR1.5 billion to EUR2 billion
expected when Ferrari is floated later this year.

But any transaction with Mediobanca is not as simple as it looks.  
Last month, Fiat entered into agreement with creditor banks and
selected Deutsche Bank, IntesaBCI and UniCredito Italiano to
manage Ferrari's IPO.

According to observers, Mediobanca is after the hefty commissions
that it can derive if it handles the flotation.  This would
inevitably anger the three banks.

"It's a clever, if possibly expensive, move, if it works.  But
Mediobanca has to find other partners for this deal to go
through, and investors are a bit worried about the high price,"
one person told the Financial Times.

Ferrari last year had sales of EUR1.04 billion and a net profit
of EUR47 million.  Fiat had originally planned to float Ferrari
in 2003, but agreed to speed up the offering under pressure from
its creditor banks, the paper says.

Fiat needs to slash its EUR35.6 billion-debt burden this year
through asset disposals, as stipulated in the agreement with
creditor banks last month.


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


LAURUS NV: Enterprise Chamber Turns Down Request of Jelgersma
-------------------------------------------------------------
The Enterprise Chamber of the Amsterdam Court has turned down the
request made by Mr Albada Jelgersma and some other shareholders
to postpone the annual meeting of Laurus NV which is planned on
June 28, 2002.

This means that this meeting will be held, as scheduled today.

The Enterprise Chamber considers that the procedure for convening
the annual meeting was not perfectly executed, but that this does
not equal out against the major interests which dominate this
case.

The judge considers also that the main points of the proposed
transaction have already been known to the public for quite some
time. Furthermore the judge considers it unlikely that Mr Albada
Jelgersma will come shortly with an alternative plan.


KPNQWEST NV: Deloitte Says Andersen Did Not Approve April Report
----------------------------------------------------------------
Deloitte & Touche, the current auditor of KPNQwest, disclosed
early this week that the annual report distributed by the now-
bankrupt data carrier in April did not have the clearance of
former auditor Arthur Andersen.

Deloitte Spokesman Paul Vermeij told the Financial Times that he
had checked with the "highest level and Andersen never signed off
anything or even indicated that it was going to do so."

The controversy adds another twist to the scandal that now
engulfs the company in relation to its rapid demise.  In April,
the company said it would still report a profit at the end of the
year, albeit lower that earlier projected.  About a month later,
however, the company declared bankruptcy.

Several groups, which include a powerful banking syndicate, are
now calling for an investigation into its legendary collapse.  
These are on account of "major discrepancies" in its books,
particularly its revenues and the amount of cash owed by its
parents, KPN of the Netherlands and Qwest Communications of the
US, the Financial Times says.

Mr. Vermeij says he is positive Andersen did not sign the annual
report in April because "new developments" came to light that
required further work to be done on the document.  These
developments were ostensibly related to the drop in demand for
capacity, which meant that the company risked breaching covenants
on a EUR525 million bank loan.

"I have never experienced anything like this.  We are surprised
that there is a printed report as there was no formal OK from the
accountant," Mr. Vermeij told the Financial Times.

The bulk of the 15,000 copies of the annual report are still with
Plantijn Casparie, a Dutch print company, which admitted shipping
copies to Qwest in Denver.

The printer did not release most of the copies because it said
that it had not been paid.  The documents are locked at the
printer's distribution center on orders of trustees charged with
overseeing the unwinding of the company following its bankruptcy
filing on May 31, the paper says.

A KPNQwest official close to ex-CEO Jack McMaster, however,
claims he has documentation to prove that Paul Ogden, a senior
partner at Andersen now with Deloitte & Touche, signed off the
annual report.

This documentation includes e-mails and the minutes of
supervisory board meetings the company refused to release.

"We are confident that an opinion was provided by Arthur
Andersen," the official told the Financial Times.


VERSATEL TELECOM: Taps Shearman & Sterling as Bankruptcy Counsel
----------------------------------------------------------------
Versatel Telecom International N.V., asks authority from the U.S.
Bankruptcy Court for the Southern District of New York to
authorize the Debtor to retain and employ the law firm of
Shearman & Sterling on a general retainer as its counsel.

The Court gives the Debtor an authority to employ Shearman &
Sterling in an interim basis as of the Petition Date.

Shearman & Sterling received a retainer of $250,000 for services
to be rendered and expenses to be incurred in this
representation. Shearman & Sterling will apply this retainer to
its legal fees, only if approved by the Court.

The Debtor agrees to compensate Shearman & Sterling in their
current customary hourly rates, which are:

          partners and counsel      $500 to $700 per hour
          associates                $195 to $495
          paralegals and clerks     $90 to $190 per hour

The professional services that is expected of Shearman & Sterling
include:

     a) to provide legal advice with respect to the Debtor's
        powers and duties as debtor in possession in the
        continued operation of its business and management of
        its properties;

     b) to pursue the confirmation of a chapter 11 plan of
        reorganization for the Debtor;

     c) to prepare on behalf of the Debtor necessary motions,
        applications, objections, responses, answers, orders,
        reports, and other legal papers;

     d) to appear in Court and to protect the interests of the
        Debtor before the Court; and

     e) to perform all other legal services for the Debtor which
        may be necessary and proper in these proceedings.

The Debtor assures the Court that Shearman & Sterling is a
"disinterested person" as that phrase is defined in the
Bankruptcy Code.

Versatel Telecom International, N.V. provides broadband Internet
and telecommunications services including voice and data
services, dedicated Internet access services, customized
telecommunication solutions and Internet-enabled applications in
The Netherlands, Belgium and northwest Germany.

The Debtor filed for chapter 11 protection on June 19, 2002.
Douglas P. Bartner, Esq. at Shearman & Sterling represents the
Debtor in its restructuring efforts. When the Company filed for
protection from its creditors, it listed $2,017,758,399 in total
assets and $1,605,897,821 in total debts.


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


LM ERICSSON: Wins US$ 105MM GSM Contract With Mobtel in Serbia
--------------------------------------------------------------
Ericsson and leading Serbian operator Mobtel have signed a
contract valued at more than USD 105 million to expand and
enhance Mobtel's GSM 900/1800 network, the Swedish mobile
equipment maker announced Wednesday.

Ericsson will as sole supplier provide equipment, software and
services in the expansion.

Implementation will begin immediately, and when completed in 12
months will allow Mobtel to offer their customers the latest,
most advanced services, including MMS (Multimedia Messaging
Service).

Capacity in the network will nearly double, from the current one
million subscribers to close to two million.

"The enhancements this contract brings will allow Mobtel to offer
the newest Mobile Internet services to our users as well as
prepare us for major subscriber growth," said Sreten Karic,
General Director of Mobtel.

Ericsson will provide expanded core network, radio and microwave
infrastructure, GPRS packet switching technology, MPS (Mobile
Positioning System) and enhanced Mobile Internet functionality
for, e.g. MMS services.

"This represents a big and inspiring step for the Yugoslav
market," said Mobtel Director in Charge Branislav Andjelic. "We
are very happy to work with Ericsson. We have been in partnership
with them since 1995 and will continue for years to come."

"With this contract Ericsson continues to be recognized as the
long-term partner in the modernization process and as the leading
supplier of Mobile Internet systems and services," says Jan
Hultgren, President Ericsson Yugoslavia.

Ericsson's core activities are concentrated in the Mobile and
Broadband Internet communications industry, with global prescence
in 140 countries.

MOBTEL (Mobile Telecommunications - Serbia BK - PTT), founded on
April 15, 1994, is the leading mobile operator in Yugoslavia.


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


SWISSAIR GROUP: Responsibility of Executive Bodies of SAirGroup
---------------------------------------------------------------
At the SAirGroup creditors' meeting on June 26, 2002, the
administrator, Karl Wuthrich of Swiss law firm Wenger Plattner,
presented an initial interim report on the status of
investigations into the responsibility borne by the company's
governing and executive bodies.

A summary of the findings is set out below:

On the basis of powers vested in him by the debt restructuring
judge, the administrator instructed Ernst & Young in the spring
of 2002 to undertake an investigation into the responsibility
borne by the governing and executive bodies of the SAirGroup.
This investigation was to take place instead of a special audit.

It looked into issues related to corporate governance and the
acquisitions made by the Swissair Group as it pursued its
"Hunter" strategy. The financial statements from 1999 and 2000
and their auditing are also being investigated, as is the period
between the last annual general meeting of the SAirGroup and the
suspension of flight operations.

Inquiries are difficult and time-consuming because the
transactions under examination are extremely complex and, in some
cases, hard to trace. Work is also being hindered by the
Swissair-specific filing and documentation system, which contains
gaps in some areas.

A further complicating factor is that the SAirGroup auditors,
PricewaterhouseCoopers and KPMG, have so far not felt able to
grant the administrator access to their audit records.

The ultimate findings of the investigation cannot be presented
until the work of Ernst & Young is complete in autumn 2002. At
this juncture, three problem areas should be mentioned which,
given the evaluation of records currently underway, may grow in
importance as the inquiry progresses.

In group financial statements, the financial position, the
results of operations and the cash flows of the parent company
and all its subsidiaries must, by means of the consolidation of
the individual
financial statements, be presented as though the various
companies were one and the same.

Subsidiaries are defined as all companies which are controlled by
another company. In the context of the International Accounting
Standards (IAS), control means that the financial and business
policy of a company can be determined by the parent company to
such an extent that the parent can draw a benefit from the
subsidiary's activities.

Holdings in foreign airlines were not fully consolidated in the
annual and semi-annual accounts published by the SAirGroup.

The investigation will look into the issue of whether not fully
consolidating these companies complied with IAS regulations in
individual cases and will also ask whether or not the full
consolidation of these foreign airlines in 1999 and 2000 would
have presented a different picture of the Group's financial and
business circumstances.

Under EU law, the Swissair Group was not permitted to hold a
majority share in an EU airline, or to exercise de facto control
over such an airline by any other means.

With these conditions in mind, the senior officers of the
Swissair Group attempted to create favorable conditions under
which to acquire majority shareholdings in or control of foreign
airlines.

In its acquisition of Air Littoral, the Swissair Group purchased
two tranches of shares, amounting to 95.3% of the company, at a
total price of FRF 255 million. Before buying the second tranche,
the Swissair
Group sold a 46.3% holding to trustees, known as "porteurs", for
a token sum of FRF 1.

The trustees were indemnified against all costs and any third-
party claims in connection with this transaction. The shares
acquired by the Swissair Group were written off in full in the
year they
were bought and the buy-back by the Swissair Group of equity held
by the porteurs was hedged by call and put options.

The chairman of Air Littoral, who held the remaining 4.7% of the
company, also held a put option to sell his shares to Sabena. By
its own admission, the Swissair Group thus controlled Air
Littoral completely from June 29, 1999.

In the context of the present investigation, this raises the
question of whether or not the holding in Air Littoral should
have been
consolidated.

An equity swap involves a company selling its own shares to a
counterparty at the market price and an obligation on the part of
the seller to buy back those shares at the end of the agreed
term, or leave them with the buyer against the payment of any
difference in value.

During the term, the seller is charged an agreed rate of interest
on the current market value of the securities.

An equity swap allows the seller company to improve its liquidity
over the term of the transaction while also raising the ratio of
equity to borrowing.

The economic risk (particularly the price risk attached to
the shares) remains with the seller for the term of the
transaction. If share prices fall, the seller must make regular
additional payments equalling the fall in price.

Between 1999 and 2001, the SAirGroup undertook extensive equity
swap transactions, leading to outflows of funds and additional
payments amounting to several hundred million Swiss francs as
share prices fell.

In 2001 alone, the total liability attached to two specific
transactions stood at CHF 485 million. By the time the debt
restructuring application was lodged, CHF 403 million had been
settled by payments to banks and a further CHF 25 million had
been offset by the banks from mortgaged assets.

Here, the present investigation is concentrating in particular on
the issue of whether or not all transactions involving the
company's own shares, including the equity swap transactions,
were
booked properly and shown accurately in the individual financial
statements as well as in the accounts for the Group as a whole.

Contact Information:

Filippo Th. Beck
Wenger Plattner
Telephone: +41 (0)1 914 27 70
Fax: +41 (0)1 914 27 88

Administrator's Web site: www.sachwalter-swissair.ch


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


ALBERT FISHER: Del Monte Buys Fisher Foods for Undisclosed Amount
-----------------------------------------------------------------
Del Monte Fresh Packaged Produce, a subsidiary of the U.S. giant,
is now the new owner of Fisher Foods, the chilled foods division
of Albert Fisher, says BBC News.

The move saved about 1,200 jobs and left the seafoods business,
located in Fraserburgh, Peterhead and Gosforth, the only
remaining unit in doubt.

Last week, the company also shipped its King's Lynn factory,
which produces a third of the U.K.'s frozen peas, to Belgian firm
Pingouin.

KPMG, the court-appointed administrator managing the day-to-day
operations of the group, would not disclose how much Del Monte
paid for Fisher Foods, the report says.  The chilled food
business employs 310 at Wisbech in Norfolk, 660 at Methwold in
Suffolk and 280 people in York.

"We are obviously delighted to have helped save 1,250 jobs and
ensure a sale to a corporation with the size and reputation of
Del Monte.  We wish them and the employees well in their future
operations," KPMG said.

The group went into administration last month with debts of
GBP100 million.  KPMG hopes current negotiations for the sale of
the remaining units will result in a deal in the next few weeks.


COLT TELECOM: Announces Additional GBP 11MM Bond Buyback   
--------------------------------------------------------
COLT Telecom Group plc (COLT), a European provider of business
communication services, said Wednesday that it had purchased a
further GBP11 Million of COLT bonds for a cash outlay of GBP5
Million.

The purchases were undertaken by COLT Telecom Finance Limited as
set out below. COLT Telecom Finance Limited has no intention to
sell the notes it has purchased and arrangements may be made in
due course to cancel such notes.

COLT may purchase additional bonds in the future.

The following bonds have been purchased:

- US$2.5 Million accreted principal amount of our US$314 Million
12% Senior Discount Notes due December 2006;

- EUR3.1 Million face amount of our EUR76.7 Million 8.875% Senior
Notes due November 2007;

- EUR4.9 Million face amount of our EUR306.8 Million 7.625%
Senior Notes due July 2008;

- EUR4.4 Million accreted principal amount of our EUR368 Million
2% Senior Convertible Notes due December 2006; and

- EUR2.6 Million accreted principal amount of our EUR402.5
Million 2% Senior Convertible Notes due April 2007.

In aggregate COLT has now purchased:

- US$64.3 Million accreted principal amount of our US$314 Million
12% Senior Discount Notes due December 2006;

- GBP3.0 Million face amount of our GBP50 Million 10.125% Senior
Notes due November 2007;

- EUR8.1 Million face amount of our EUR76.7 Million 8.875% Senior
Notes due November 2007;

- EUR51.9 Million face amount of our EUR306.8 Million 7.625%
Senior Notes due July 2008;

- EUR50.3 Million face amount of our EUR320 Million 7.625% Senior
Notes due December 2009;

- EUR16.8 Million accreted principal amount of our EUR306.8
Million 2% Senior Convertible Notes due August 2005;

- EUR84.8 Million accreted principal amount of our EUR295 Million
2% Senior Convertible Notes due March 2006;

- EUR77.4 Million accreted principal amount of our EUR368 Million
2% Senior Convertible Notes due December 2006; and

- EUR95.0 Million accreted principal amount of our EUR402.5
Million 2% Senior Convertible Notes due April 2007.

Contact Information:

John Doherty
Director Investor Relations
Email: jdoherty@colt.net
Telephone: +44 20 7390 3681


CORDIANT COMMUNICATIONS: Chairman's Trading Statement at AGM
------------------------------------------------------------
On Wednesday's Annual General Meeting Charles Scott, Cordiant's
Chairman, commented:

"Trading conditions are still challenging and the Group's
expectation is for a decline in underlying revenues in 2002. We
do not expect our markets to return to growth until 2003.

"In line with our expectations, underlying revenues in the first
five months of the year declined by 11%*. This decline reflects
the relatively high levels of activity experienced in the first
five months of 2001 compared to 2002. Despite this, the Group has
continued to meet its internal profitability targets as cost
savings initiated in 2001 have been realized.

"Many of the markets in which we operate are still difficult and
we continue to reduce costs where appropriate. In the current
revenue environment our focus is on tight cost control to deliver
a recovery in earnings. The Group's target remains a 50%
improvement in operating margins in 2002."

Note:

* Underlying revenues are calculated on a constant exchange rate
basis and after taking account of prior year comparative revenues
from acquisitions.

Contact Information:

Cordiant
Michael Bungey               
Chief Executive Officer            
Telephone: +44 207 262 4343

Nathan Runnicles             
Investor Relations


GARTON ENGINEERING: Company Profile
-----------------------------------  
Name:      Garton Engineering plc
           Bridge Works, Bilport Lane
           Wednesbury, West Midlands
           WS10 0NU, United Kingdom

Telephone: 0121 502 2871
Fax:       0121 505 1376

Email:     enquiries@garton.co.uk
Website:   http://www.garton.co.uk

SIC:       Industrial Metal Manufacturer
Employees: 556  
Net Loss:  GBP297,000 (H1 2001)
Total Assets:       GBP 10.9 million/US$ 16.6 million (H1 2001)
Total Liabilities:  GBP 9.4 million/US$ 14.3 million (H1 2001)

Type of Business:  Garton Engineering p.l.c. manufactures and
distributes engineering components and fasteners. Its products
include pressed nuts, bolts, precision turned parts, presswork,
assemblies, washers, circlips, fabrications, sheetmetalwork, U-
bolts, special studs, rod formwork, grey iron castings, spring
clips, fasteners and retainers.

Trigger Event: In March, Garton Engineering plc appointed Chris
Marsden and Leighton More of Arthur Andersen as joint
administrative receivers of Garton Engineering and certain of its
subsidiaries.

The move came after discussions with its bankers to gain backing
for a  
restructuring package ceased in late February 2002.

In mid-February, the company announced that its results for the
full year would be significantly worse than those for the
previous year, which showed pretax loss of US$1.2 million.

Managing Director: T A Garton
Group Financial Director: J A Barker
Chairman: M Hale  

Auditors:  BDO Stoy Hayward
Bankers:  HSBC Bank PLC
Law Firms:  Wragge & Co  
Financial PR Advisers:  Weber Shandwick; Square Mile

No. of Shares in Issue:  3.8 million shares
Last published on TCR Europe: March 18, 2002


VAUXHALL: Airport Operator Interested in Closed Luton Car Plant
---------------------------------------------------------------
Airports operator TBI, which recently bared strong sales and
profit figures, is eyeing the 63-acre car factory site of
Vauxhall in Luton, The Guardian said Wednesday.

TBI CEO Keith Brooks could not be drawn, however, to disclose his
plans for the site, but it has been known for some time now that
the company is planning to build a second runway in Luton.  Mr.
Brooks merely hinted using the site for its retail facilities or
for car parking purposes.

Owner of Cardiff and Belfast International airports, TBI handles
about 6.6 million passengers a year at its 2,200-metre single
runway in Luton.  

Vauxhall, a subsidiary of General Motors, stopped production at
the Luton plant on March 21, according to the Troubled Company
Reporter-Europe.  More than 1,000 employees lost their jobs as a
result of the plant closure.

Although, the carmaker blames the fall in demand in the Vectra
market, the decision to close the factory was actually made in
December 2000 as part of General Motors' cost-cutting plan in
Europe.

Before the shutdown, Vauxhall assembled the Frontera 4x4 vehicle
at the factory, producing 35,000 of such cars in 2000 and 2,800
from January to September last year, said TCR-Europe.  

The fall in demand for this brand last year left Luton making
only Vivaro vans through its IBC subsidiary, situated near the
now-closed factory.


WORLDCOM, INC: Company Profile
------------------------------  
Name:   Worldcom, Inc.
        Reading International Business Park
        Basingstoke Road, Reading
        Berkshire RG2 6DA
        United Kingdom

        Telephone: +44 (0)118 905 5000
        Website: http://www1.worldcom.com/uk

        Internet House
        332 Science Park
        Cambridge CB4 0BZ
        United Kingdom
        Telephone: +44 (0)1223 250100
        Fax: +44 (0)1223 250101

        Internet Place
        330 Science Park
        Cambridge CB4 0WQ
        United Kingdom
        Telephone: +44 (0)1223 250100
        Fax: +44 (0)1223 250101

SIC:    Internet Communications Services
Employees:  85,000 (worldwide)
Net Profit: US$ 1.4BB (To be restated as LOSS according to CEO)     
Total Assets:   US$ 103.9BB (Dec. 2001)
Total Liabilities:  US$46.8BB (Dec. 2001)

Type of Business:  Located in over 65 countries, WorldCom
provides communications services on a global scale. WorldCom
operates networks across Europe including those in London, Paris,
Frankfurt, Hamburg, Dusseldorf, Amsterdam, Rotterdam, Brussels,
Dublin and Milan. The group also operates national networks in
the U.K., France, Germany, the Netherlands, Switzerland, Sweden,
Denmark, and Belgium.

Trigger Event: Worldcom reported on June 25, 2002 that certain
financial postings this period were not made according to the
generally accepted accounting principles (GAAP).

Without these transactions, the company would have reported
negative results for the first quarter of 2002 and a net loss for
the year 2001.

Chairman: Bert C. Roberts Jr.
President/CEO: John W. Sidgmore
COO and Director: Ronald R. Beaumont

Auditor: KPMG LLP; Arthur Andersen


WORLDCOM, INC: Will Restate 2001, Q1 2002 Financial Statements
--------------------------------------------------------------
WorldCom, Inc. Tuesday announced it intends to restate its
financial statements for 2001 and the first quarter of 2002.

As a result of an internal audit of the company's capital
expenditure accounting, it was determined that certain transfers
from line cost expenses to capital accounts during this period
were not made in accordance with generally accepted accounting
principles (GAAP).

The amount of these transfers was US$3.055 billion for 2001 and
US$797 million for first quarter 2002.

Without these transfers, the company's reported EBITDA would be
reduced to US$6.339 billion for 2001 and US$1.368 billion for
first quarter 2002, and the company would have reported a net
loss for 2001 and for the first quarter of 2002.

The company promptly notified its recently engaged external
auditors, KPMG LLP, and has asked KPMG to undertake a
comprehensive audit of the company's financial statements for
2001 and 2002.

The company also notified Andersen LLP, which had audited the
company's financial statements for 2001 and reviewed such
statements for first quarter 2002, promptly upon discovering
these transfers.

On June 24, 2002, Andersen advised WorldCom that in light of the
inappropriate transfers of line costs, Andersen's audit report on
the company's financial statements for 2001 and Andersen's review
of the company's financial statements for the first quarter of
2002 could not be relied upon.

The company will issue unaudited financial statements for 2001
and for the first quarter of 2002 as soon as practicable. When an
audit is completed, the company will provide new audited
financial statements for all required periods. Also, WorldCom is
reviewing its financial guidance.

The company has terminated Scott Sullivan as chief financial
officer and secretary. The company has accepted the resignation
of David Myers as senior vice president and controller.

WorldCom has notified the Securities and Exchange Commission
(SEC) of these events. The Audit Committee of the Board of
Directors has retained William R. McLucas, of the law firm of
Wilmer, Cutler & Pickering, former Chief of the Enforcement
Division of the SEC, to conduct an independent investigation of
the matter. Tuesday evening, WorldCom also notified its lead bank
lenders of these events.

The expected restatement of operating results for 2001 and 2002
is not expected to have an impact on the Company's cash position
and will not affect WorldCom's customers or services. WorldCom
has no debt maturing during the next two quarters.

"Our senior management team is shocked by these discoveries,"
said John Sidgmore, appointed WorldCom CEO on April 29, 2002. "We
are committed to operating WorldCom in accordance with the
highest ethical standards."

"I want to assure our customers and employees that the company
remains viable and committed to a long-term future. Our services
are in no way affected by this matter, and our dedication to
meeting customer needs remains unwavering," added Sidgmore. "I
have made a commitment to driving fundamental change at WorldCom,
and this matter will not deter the new management team from
fulfilling our plans."

As Sidgmore previously announced, WorldCom will continue its
efforts to restructure the company to better position itself for
future growth. These efforts include:

- Cutting capital expenditures significantly in 2002. We intend
2003 capital expenditures will be US$2.1 billion on an annual
basis.

- Downsizing our workforce by 17,000, beginning this Friday,
which is expected to save US$900 million on an annual basis. This
downsizing is primarily composed of discontinued operations,
operations & technology functions, attrition and contractor
terminations.

- Selling a series of non-core businesses, including exiting the
wireless resale business, which alone will save US$700 million
annually. The company is also exploring the sale of other
wireless assets and certain South American assets. These sales
will reduce losses associated with these operations and allow the
company to focus on its core businesses.

- Paying Series D, E and F preferred stock dividends in common
stock rather than cash, deferring dividends on MCI QUIPS, and
discontinuing the MCI tracker dividend, saving approximately
US$375 million annually.

- Creating a new position of Chief Service and Quality Officer to
keep an eye focused on our customer services during this
restructuring.

"We intend to create US$2 billion a year in cash savings in
addition to any cash generated from our business operations,"
said Sidgmore. "By focusing on these steps, I am convinced
WorldCom will emerge a stronger, more competitive player."


WORLDCOM, INC.: Moody's Cuts Rating to Ca, Doubts Recovery
----------------------------------------------------------
Moody's Investors Service downgraded WorldCom, Inc.'s senior
unsecured rating to Ca from B1, finding it difficult to believe
that the company can still recover from its accounting scandal.

"Moody's downgraded WorldCom's debt rating due to our concerns
that (1) the company may not be able to recover from the
accounting fraud allegations, (2) accounting irregularities and
fraud accusations make the successful renegotiation of the bank
facilities unlikely, (3) the company is now unlikely to be able
to draw down on a key source of liquidity, its US$1.6 billion
bank facility, (4) even if debt is not accelerated, WorldCom's
current cash position and cash generating capability would likely
be inadequate to cover its debt maturities in early 2003, and (5)
material numbers of current business customers may begin to
migrate to other carriers," the rating agency said in a
statement.

The company admitted recently that it had improperly booked
US$3.8 billion (US$3.06 billion in 2001, US$797 million in 2002)
of expenses as capital expenditures for the past five fiscal
quarters (i.e. 2001 and the first quarter of 2002).

Moody's believes the future of the company is very uncertain.  At
the moment, it is unclear whether creditor banks would accelerate
payment on the US$2.6 billion outstanding.

"WorldCom is likely to face a substantially limited ability to
renegotiate its bank debt and receivable securitization
facilities and must take corrective action to generate cash in
order to address its upcoming debt maturities and reduce its debt
burden," Moody's said.

"The Ca rating of WorldCom's senior notes reflects their
effective subordination to outstandings under the US$1.5 billion
account receivable financing as well as to future borrowings
under its potential US$5 billion secured credit facility,"
Moody's explained.

"The Ca ratings of Intermedia reflect the ability of the company
to rely on the intercompany loan from WorldCom to offset the
sizable operating losses and cash outflows," Moody's said.

These are the new ratings of WorldCom and its subsidiaries:

WorldCom, Inc. -- senior unsecured long-term to Ca from B1,
preferred stock to C from Caa1, senior shelf to (P)Ca from (P)B1,
and subordinated shelf to (P)C from (P)B3.

Intermedia Communications Inc. -- senior unsecured long-term to
Ca from B2, subordinated debt to C from Caa1 and redeemable
preferred to C from Caa2.

MCI Communications Corporation -- senior unsecured long-term to
Ca from B1, subordinated debt to C from B3.

MCI Capital I-backed preferred stock to C from B3.

MCI WorldCom Synergies Management Co. Inc - preferred stock to C
from Caa2.

WorldCom is a telecommunications company headquartered in
Clinton, Mississippi.


WORLDCOM, INC.: Anxiety Sweeps Across Employees in European HQ
--------------------------------------------------------------
Worries of a far wider redundancy is sweeping across the various
offices of WorldCom in the United Kingdom, despite assurances
that only 150 jobs will be lost for now.

According to the Scotsman, the troubled American telecom giant
has about 3,000 employees in the U.K., of which 2,000 are working
in the European headquarters in Reading.  About 300 are working
as sales staff in Scotland and another 600 are employed at a
research and development base in Cambridge.  The remainder is
spread in sales offices in Manchester, Leeds, Bristol and three
offices in London.

During a conference call on Wednesday, senior management assured
employees that their jobs are secured and that the plan by the
parent to axe 17,000 jobs will only be implemented in the U.S.  A
company spokeswoman said the layoff will save the company US$900
million (GBP589 million) annually.

An internal auditor recently discovered a multi-billion-dollar
accounting fraud, which management acknowledged early this week.  
The scandal could lead to bankruptcy, according to the Scotsman.  
If this happens, though, not many rivals are keenly interested in
buying WorldCom's assets in the U.K., says the paper.

A spokeswoman for Thus Plc, an alternative carrier operating in
Glasgow, told the Scotsman her company would not be possibly
interested in buying WorldCom because its fiber-optic network is
still relatively new.

"We are interested in WorldCom's customers [though]," she told
the paper.

British Telecom, on the other hand, did not comment when asked by
Scotsman.  This company lost to WorldCom in 1997 in their race to
acquire U.S. firm MCI.

WorldCom is one of the biggest suppliers of Internet and data
services to European businesses, offering services ranging from
low-tech telephone and fax solutions to web hosting.  It has an
extensive fiber-optic cable network connecting major UK cities,
including Edinburgh, Glasgow and Aberdeen, which might be
attractive to an alternative telecoms carrier, says the Scotsman.


WORLDCOM, INC: Bernstein Liebhard & Lifshitz Files Class Suit
-------------------------------------------------------------
Bernstein Liebhard & Lifshitz LLP initiated a securities class
action on behalf of all persons and entities who purchased,
converted, exchanged or otherwise acquired the common stock of
WorldCom, Inc. between January 3, 2000, and April 29, 2002,
inclusive in the United States District Court for the Southern
District of New York.  

The suit names as defendants the Company and:

     (1) Bernard J. Ebbers (former) president/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francesco Galesi, director, and
     (5) Arthur Anderson, LLP

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder, as well as pendant state law claims for fraud,
negligent misrepresentation, and intentional deceit/ and seeks to
recover damages.

The complaint alleges that violated the federal securities laws
by making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.

Particularly, the defendants misrepresented the Company's
earnings in its public filings with the SEC and elsewhere as a
result of failing to record write-downs of goodwill and other
intangible assets associated with its acquisition of numerous
telecommunications companies at premium prices.

The suit further alleges that the defendants affirmatively
misstating the value of goodwill and other intangible assets
associated with the Company's acquisition of numerous
telecommunications companies at premium prices and carrying such
assets on the Company's balance sheet at the cost of acquiring
them long after it had become apparent that the Company had
overpaid to acquire such assets.

Additionally, the defendants failed to disclose that the
Company's goodwill and other intangible assets associated with
its acquisitions of numerous telecommunications companies at
premium prices were being carried at unrealistically and
misleadingly high values on its balance sheet.


WORLDCOM, INC: Lovell & Stewart Initiates Securities Suit
---------------------------------------------------------
Lovell & Stewart, LLP initiated a securities class action on
behalf of all persons and entities who purchased, converted,
exchanged or otherwise acquired the common stock of WorldCom,
Inc. between January 3, 2000, and April 29, 2002, inclusive in
the United States District Court for the Southern District of New
York.  

The suit names as defendants the Company and:

     (1) Bernard J. Ebbers (former) president/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francesco Galesi, director, and
     (5) Arthur Anderson, LLP

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder, as well as pendant state law claims for fraud,
negligent misrepresentation, and intentional deceit/ and seeks to
recover damages.

The complaint alleges that violated the federal securities laws
by making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.

Particularly, the defendants misrepresented the Company's
earnings in its public filings with the SEC and elsewhere as a
result of failing to record write-downs of goodwill and other
intangible assets associated with its acquisition of numerous
telecommunications companies at premium prices.

The suit further alleges that the defendants affirmatively
misstating the value of goodwill and other intangible assets
associated with the Company's acquisition of numerous
telecommunications companies at premium prices and carrying such
assets on the Company's balance sheet at the cost of acquiring
them long after it had become apparent that the Company had
overpaid to acquire such assets.

Additionally, the defendants failed to disclose that the
Company's goodwill and other intangible assets associated with
its acquisitions of numerous telecommunications companies at
premium prices were being carried at unrealistically and
misleadingly high values on its balance sheet.

For more details, contact Christopher Lovell, Victor E. Stewart
or Christopher J. Gray by Mail: 500 Fifth Avenue, New York, New
York 10110 by Phone: 212/608-1900 by E-mail: sklovell@aol.com or
visit the firm's Web site: http://www.lovellstewart.com


WORLDCOM, INC.: Lovell Stewart Expands Class Period in Suit
-----------------------------------------------------------  
Lovell & Stewart, LLP filed an amended securities class action
against WorldCom, Inc., which extends the class period to include
all persons and entities who purchased, converted, exchanged or
otherwise acquired the Company's common stock between April 30,
1999 and April 29, 2002, inclusive.

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder and the common law, against the Company and:

     (1) Bernard J. Ebbers, president/CEO,
     (2) James C. Allen,
     (3) Max E. Bobbitt,
     (4) Francesco Galesi, and
     (5) Arthur Andersen, LLP

The defendants allegedly violated the federal securities laws by
making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.  

The suit alleges that the Company misrepresented its earnings in
its public filings with the SEC and elsewhere as a result of
failing to record write-downs of goodwill and other intangible
assets associated with the Company's acquisition of numerous
telecommunications companies at premium prices.

The complaint further alleges that the Company affirmatively
misstated the value of goodwill and other intangible assets
associated with its acquisition of numerous telecommunications
companies at premium prices and carried such assets on its
balance sheet at the cost of acquiring them long after it had
become apparent that the Company had overpaid to acquire such
assets.

The complaint alleges that defendant Arthur Andersen, LLP
violated the federal securities laws by certifying the Company's
financial statements as incorporated in the Company's Annual
Report for the year 2000 filed with the SEC on March 30, 2001,
and by allowing its unqualified opinion to be incorporated by
reference into the Company's quarterly filings with the SEC after
it was readily apparent that the goodwill and other intangible
assets on its balance sheet were being carried at unrealistically
and misleadingly high values.


WORLDCOM, INC: Kirby McInerney & Squire LLP Files Securities Case
-----------------------------------------------------------------
Kirby McInerney & Squire LLP initiated a securities class action
on behalf of all persons and entities who purchased, converted,
exchanged or otherwise acquired the common stock of WorldCom,
Inc. between January 3, 2000, and April 29, 2002, inclusive in
the United States District Court for the Southern District of New
York.  

The suit names as defendants the Company and:

     (1) Bernard J. Ebbers (former) president/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francesco Galesi, director, and
     (5) Arthur Anderson, LLP

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder, as well as pendant state law claims for fraud,
negligent misrepresentation, and intentional deceit/ and seeks to
recover damages.

The complaint alleges that violated the federal securities laws
by making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.

Particularly, the defendants misrepresented the Company's
earnings in its public filings with the SEC and elsewhere as a
result of failing to record write-downs of goodwill and other
intangible assets associated with its acquisition of numerous
telecommunications companies at premium prices.

The suit further alleges that the defendants affirmatively
misstating the value of goodwill and other intangible assets
associated with the Company's acquisition of numerous
telecommunications companies at premium prices and carrying such
assets on the Company's balance sheet at the cost of acquiring
them long after it had become apparent that the Company had
overpaid to acquire such assets.

Additionally, the defendants failed to disclose that the
Company's goodwill and other intangible assets associated with
its acquisitions of numerous telecommunications companies at
premium prices were being carried at unrealistically and
misleadingly high values on its balance sheet.


WORLDCOM, INC: Rabin & Peckel LLP Begins Securities Class Action
----------------------------------------------------------------
Rabin & Peckel LLP initiated a securities class action on behalf
of all persons and entities who purchased, converted, exchanged
or otherwise acquired the common stock of WorldCom, Inc. between
January 3, 2000, and April 29, 2002, inclusive in the United
States District Court for the Southern District of New York.  

The suit names as defendants the Company and:

     (1) Bernard J. Ebbers (former) president/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francesco Galesi, director, and
     (5) Arthur Anderson, LLP

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder, as well as pendant state law claims for fraud,
negligent misrepresentation, and intentional deceit/ and seeks to
recover damages.

The complaint alleges that violated the federal securities laws
by making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.

Particularly, the defendants misrepresented the Company's
earnings in its public filings with the SEC and elsewhere as a
result of failing to record write-downs of goodwill and other
intangible assets associated with its acquisition of numerous
telecommunications companies at premium prices.

The suit further alleges that the defendants affirmatively
misstating the value of goodwill and other intangible assets
associated with the Company's acquisition of numerous
telecommunications companies at premium prices and carrying such
assets on the Company's balance sheet at the cost of acquiring
them long after it had become apparent that the Company had
overpaid to acquire such assets.

Additionally, the defendants failed to disclose that the
Company's goodwill and other intangible assets associated with
its acquisitions of numerous telecommunications companies at
premium prices were being carried at unrealistically and
misleadingly high values on its balance sheet.


WORLDCOM, INC: Glancy & Binkow LLP Files Class Action
-----------------------------------------------------
Glancy & Binkow LLP initiated a securities class action on behalf
of all persons and entities who purchased, converted, exchanged
or otherwise acquired the common stock of WorldCom, Inc. between
January 3, 2000, and April 29, 2002, inclusive in the United
States District Court for the Southern District of New York.  

The suit names as defendants the Company and:

     (1) Bernard J. Ebbers (former) president/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francesco Galesi, director, and
     (5) Arthur Anderson, LLP

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder, as well as pendant state law claims for fraud,
negligent misrepresentation, and intentional deceit/ and seeks to
recover damages.

The complaint alleges that violated the federal securities laws
by making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.

Particularly, the defendants misrepresented the Company's
earnings in its public filings with the SEC and elsewhere as a
result of failing to record write-downs of goodwill and other
intangible assets associated with its acquisition of numerous
telecommunications companies at premium prices.

The suit further alleges that the defendants affirmatively
misstating the value of goodwill and other intangible assets
associated with the Company's acquisition of numerous
telecommunications companies at premium prices and carrying such
assets on the Company's balance sheet at the cost of acquiring
them long after it had become apparent that the Company had
overpaid to acquire such assets.

Additionally, the defendants failed to disclose that the
Company's goodwill and other intangible assets associated with
its acquisitions of numerous telecommunications companies at
premium prices were being carried at unrealistically and
misleadingly high values on its balance sheet.


WORLDCOM, INC: Stull Stull & Brody Files Securities Class Action
----------------------------------------------------------------
Stull Stull & Brody LLP initiated a securities class action on
behalf of all persons and entities who purchased, converted,
exchanged or otherwise acquired the common stock of WorldCom,
Inc. between January 3, 2000, and April 29, 2002, inclusive in
the United States District Court for the Southern District of New
York.  

The suit names as defendants the Company and:

     (1) Bernard J. Ebbers (former) president/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francesco Galesi, director, and
     (5) Arthur Anderson, LLP

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder, as well as pendant state law claims for fraud,
negligent misrepresentation, and intentional deceit/ and seeks to
recover damages.

The complaint alleges that violated the federal securities laws
by making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.

Particularly, the defendants misrepresented the Company's
earnings in its public filings with the SEC and elsewhere as a
result of failing to record write-downs of goodwill and other
intangible assets associated with its acquisition of numerous
telecommunications companies at premium prices.

The suit further alleges that the defendants affirmatively
misstating the value of goodwill and other intangible assets
associated with the Company's acquisition of numerous
telecommunications companies at premium prices and carrying such
assets on the Company's balance sheet at the cost of acquiring
them long after it had become apparent that the Company had
overpaid to acquire such assets.

Additionally, the defendants failed to disclose that the
Company's goodwill and other intangible assets associated with
its acquisitions of numerous telecommunications companies at
premium prices were being carried at unrealistically and
misleadingly high values on its balance sheet.


WORLDCOM, INC: Weiss & Yourman Begins Securities Class Action
-------------------------------------------------------------
Weiss & Yourman initiated a securities class action on behalf of
all persons and entities who purchased, converted, exchanged or
otherwise acquired the common stock of WorldCom, Inc. between
January 3, 2000, and April 29, 2002, inclusive in the United
States District Court for the Southern District of New York.  

The suit names as defendants the Company and:

     (1) Bernard J. Ebbers (former) president/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francesco Galesi, director, and
     (5) Arthur Anderson, LLP

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder, as well as pendant state law claims for fraud,
negligent misrepresentation, and intentional deceit/ and seeks to
recover damages.

The complaint alleges that violated the federal securities laws
by making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.

Particularly, the defendants misrepresented the Company's
earnings in its public filings with the SEC and elsewhere as a
result of failing to record write-downs of goodwill and other
intangible assets associated with its acquisition of numerous
telecommunications companies at premium prices.

The suit further alleges that the defendants affirmatively
misstating the value of goodwill and other intangible assets
associated with the Company's acquisition of numerous
telecommunications companies at premium prices and carrying such
assets on the Company's balance sheet at the cost of acquiring
them long after it had become apparent that the Company had
overpaid to acquire such assets.

Additionally, the defendants failed to disclose that the
Company's goodwill and other intangible assets associated with
its acquisitions of numerous telecommunications companies at
premium prices were being carried at unrealistically and
misleadingly high values on its balance sheet.


WORLDCOM, INC: Marc S. Henzel Initiates Securities Class Action
---------------------------------------------------------------
Marc S. Henzel initiated a securities class action on behalf of
all persons and entities who purchased, converted, exchanged or
otherwise acquired the common stock of WorldCom, Inc. between
January 3, 2000, and April 29, 2002, inclusive in the United
States District Court for the Southern District of New York.  

The suit names as defendants the Company and:

     (1) Bernard J. Ebbers (former) president/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francesco Galesi, director, and
     (5) Arthur Anderson, LLP

The lawsuit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder, as well as pendant state law claims for fraud,
negligent misrepresentation, and intentional deceit/ and seeks to
recover damages.

The complaint alleges that violated the federal securities laws
by making misrepresentations and/or omissions in connection with
false and/or misleading financial statements.

Particularly, the defendants misrepresented the Company's
earnings in its public filings with the SEC and elsewhere as a
result of failing to record write-downs of goodwill and other
intangible assets associated with its acquisition of numerous
telecommunications companies at premium prices.

The suit further alleges that the defendants affirmatively
misstating the value of goodwill and other intangible assets
associated with the Company's acquisition of numerous
telecommunications companies at premium prices and carrying such
assets on the Company's balance sheet at the cost of acquiring
them long after it had become apparent that the Company had
overpaid to acquire such assets.

Additionally, the defendants failed to disclose that the
Company's goodwill and other intangible assets associated with
its acquisitions of numerous telecommunications companies at
premium prices were being carried at unrealistically and
misleadingly high values on its balance sheet.


WORLDCOM, INC.: Will Mount Vigorous Defense in Lawsuit in S.D. NY
-----------------------------------------------------------------  
WorldCom, Inc. faces several securities class actions pending in
the United States District Court for the Southern District of New
York, on behalf of persons who purchased, converted, exchanged or
otherwise acquired the common stock of WorldCom, Inc. between
January 3, 2000 and April 29, 2002, inclusive against the Company
and:

     (1) Bernard J. Ebbers, (former) President/CEO,
     (2) James C. Allen, director,
     (3) Max E. Bobbitt, director,
     (4) Francisco Galesi, director, and
     (5) Arthur Andersen, LLP

The complaint asserts claims under Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by
the SEC thereunder, as well as pendant state law claims for
fraud, negligent misrepresentation, and intentional deceit and
seeks to recover damages.

The complaint alleges that defendants violated the federal
securities laws by making misrepresentations and/or omissions in
connection with false and/or misleading financial statements.

The Company believes the factual allegations and legal claims
asserted in these complaints are without merit and will defend
them vigorously.


XANSA PLC: Losses Jump to GBP500 MM From Just GBP 10MM Last Year
----------------------------------------------------------------
British computer services provider Xansa Plc reported an
extremely large loss for the year ending April 30, says
Bloomberg.

From just GBP10.2 million in the last fiscal year, the company
absorbed GBP528.1 million in net losses for 2001 or 184.66p per
share, the news outfit says.

Shares fell as much as 11% to 93.5p on the news, the lowest level
since September 1997.  Just last year, the company was the third
best performing stock on the FTSE All-Share Software and Computer
Services index, with a 32%-uplift, Bloomberg says.  But following
two profit warnings in as many months, the company's shares have
now lost 70% of their value this year.

"It's tough for everybody... We don't see an uplift in this
market before 2003 at the earliest," CEO Hilary Cropper was
quoted by Bloomberg as saying recently.

Although revenue rose 18% to GBP515.1 million from GBP434.7
million, boosted by so-called outsourcing contracts to take over
entire departments at companies like BT Group Plc and Barclays
Plc, the company nevertheless ended in red.  

Bloomberg says one of the highlights of the results was a GBP497
million write down on the value of OSI Group Holdings Ltd., Druid
Group Plc and Synergy International Consulting Inc. -- companies
acquired in the past three years.

The company doubts it can again ink orders "quite as big" as the
250 million-pound, seven-year BT contract for a long time, the
report says.

Alistair Cox will replace Ms. Copper beginning August 1,
Bloomberg says.

                                   ***********

       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 and 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
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