/raid1/www/Hosts/bankrupt/TCREUR_Public/021206.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, December 6, 2002, Vol. 3, No. 242


                              Headlines

* F I N L A N D *

DYNEA INTERNATIONAL: S&P Lowers Senior Debt Ratings to 'CCC'

* F R A N C E *

VIVENDI UNIVERSAL: Moody's Confirms Senior Ratings

* G E R M A N Y *

ALLIANZ: Announces Successful Placement of Subordinated Bonds

* I R E L A N D *

ESG RE: Deloitte & Touche Resigns as Certifying Accountant
ESG RE: Fitch Downgrades Insurer Financial Strength Ratings

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

BUHRMANN NV: Standard & Poor's Downgrades Credit and Debt Ratings
UNITED PAN-EUROPE: Case Summary & 20 Largest Unsec. Creditors

* P O L A N D *

ELEKTRIM SA: Discloses Transactions Executed by Elektrim-Volt
NETIA HOLDINGS: Court Approves Arrangement Plan for Subsidiary

* R U S S I A *

NIKOIL COMPANY: Fitch Affirms Ratings, Assigns Stable Outlook

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

SWISS LIFE: Holding Announces Successful Capital Increase
ZURICH FINANCIAL: Notes Changes at Subsidiary Group of Companies

* U N I T E D   K I N G D O M *

AES DRAX: Fitch Lowers Senior Secured Bond Ratings to 'CC'
AMEY PLC: Partner Buys Amey Out of Tubelines Consortium
BRITISH ENERGY: Issues Output Statement
BRITISH ENERGY: Tory Government Urged to Cancel Bruce Lease
INPOWER LTD: Fitch Downgrades Senior Secured Bank Loan
INSTINET: Plans to Trim Down Workforce to Cut Expenses
MARCONI PLC: Issues Update on Financial Restructuring


=============
F I N L A N D
=============


DYNEA INTERNATIONAL: S&P Lowers Senior Debt Ratings to 'CCC'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered Dynea International
Oy's long-term corporate credit to 'B-' from 'B' and its senior
unsecured debt ratings to 'CCC' from 'CCC+'.  The outlook is
negative.

The action reflects persistent difficult business conditions in
the company's end markets, and a tightening liquidity situation,
the rating agency explains.

Standard & Poor's credit analyst, Christine Hoarau, observed that
Dynea continues to suffer weak worldwide markets for its most
important product, FA-based resins.  And as a result of the resin
producer's ongoing weak performance throughout 2002, the
company's liquidity has eroded gradually.

The analyst also noted that competition in the group's main
markets, Europe and the U.S., remains very high.

Ms. Hoarau warned that the ratings could slide further if the
market conditions or the group's liquidity situation does not
improve.  She also forebodes that the absence of a significant
market recovery in 2003 could continuously limit Dynea's
deleveraging potential in the near-to-medium term.


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


VIVENDI UNIVERSAL: Moody's Confirms Senior Ratings
--------------------------------------------------
Moody's Investors Service confirmed Vivendi Universal's senior
unsecured rating at B1, and the group's senior implied rating at
Ba3.  The rating agency assigned a negative outlook for all the
ratings.

The action recognizes the significant progress that Vivendi has
reached in its effort to address the company's most imminent
liquidity issues.  The company has recently finalized new bank
financings at Vivendi Universal and at its Vivendi Universal
Entertainment subsidiary.  It was able to lock in key disposals,
including that of Houghton Mifflin and Vivendi Universal
Publishing.

The negative outlook on the ratings, meanwhile, reflects Moody's
concern that the company remains fully dependent on the timely
disposal of a number of small to medium-sized asset sales to meet
its debt repayment obligations from the second half of 2003 and
beyond.  Execution risks for the disposals remain, says the
rating agency.

Moody's also notes that the sale of the company's 20.4% stake in
Vivendi Environnement to acquire Cegetel replaces a saleable
asset with one that might well be less liquid in the near term.

The rating agency also predicts that what Vivendi will get from
Cegetel are only dividends, which are what was provided in the
shareholder agreement for Cegetel.

It indicated to monitor Vivendi's asset disposal, while warning
that the near term ones have very high execution risks.

Ratings confirmed with a negative outlook:

Vivendi Universal SA: - senior implied rating at Ba3, senior
unsecured rating at B1

Ratings that remain under review for possible downgrade are:

Houghton Miffing Company: - senior unsecured ratings at Ba3


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


ALLIANZ: Announces Successful Placement of Subordinated Bonds
-------------------------------------------------------------
Allianz has successfully issued two subordinated bonds with a
total volume of 1.5 billion euros.

The issue was placed on the market in two tranches. A
subordinated bond with a volume of 500 million US dollars was
primarily sold in Asia. The issuer can first call this perpetual
bond after five years. The coupon has been fixed at 7.25 %.

A second subordinated bond totaling one billion euros was
primarily targeted at European investors. The issue has a 22-year
maturity and can be first called after 12 years. For the first 12
years the coupon has been fixed at 6.5 %. The yield for primary
investors is 6.6 %.

Interest rate at the lower end of the expected range

After a successful bookbuilding period the interest rate for both
issues was set at the lower end of the expected range.  Standard
& Poor's rated the issues A+; Moody's rated them A1.

After the placement of a senior jumbo bond in the volume of two
billion euros last week Allianz has issued an overall volume of
3.5 billion euros. The overall demand amounted to more than 10
billion euros. The largest bond issue of a European financial
services provider in the euro bond market of the year 2002 has
herewith been successfully completed.


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


ESG RE: Deloitte & Touche Resigns as Certifying Accountant
----------------------------------------------------------
ESG Re Limited (Nasdaq: ESREE) announced on Monday that Deloitte
& Touche has resigned as ESG's independent auditors effective
November 22, 2002. ESG is currently in the process of seeking a
replacement auditor.

Deloitte & Touche had not completed its review under SAS 71 of
the company's financial statements for the quarter ended
September 30, 2002. ESG filed a Form 12b-25 on November 15, 2002,
indicating its expectation to file the quarterly Report on Form
10-Q on November 19, 2002. ESG continued to supply responses,
supporting documentation, analysis and access to management to
Deloitte up to and including the date of their resignation. ESG
acknowledges that had the third quarter review been completed by
Deloitte & Touche, there may have been some adjustments which
would have affected the company's financial results announced for
the period ended September 30, 2002. While ESG cannot at this
time identify the exact amount of those adjustments or the effect
of these adjustments on subsequent financial periods, it
currently estimates, based on the information available to it,
that such adjustments are likely to be on the order of $500,000,
although there can be no assurance that the amount might not be
higher.

ESG also announced that it received a Nasdaq Staff Determination
letter on November 25, 2002, indicating that ESG failed to comply
with the timely filing requirements for continued listing set
forth in Marketplace Rule 4310(c)(14), and that its securities
will be delisted from the Nasdaq Stock Market, effective at the
opening of business on December 3, 2002. ESG has not yet filed
its Form 10-Q reporting on the quarter ended September 30, 2002.

ESG has requested an oral hearing before a Nasdaq Listing
Qualifications Panel to review the Staff Determination. The
hearing is expected to be scheduled within 45 days of the filing
of the hearing request. ESG has been advised that the hearing
request will stay the delisting of ESG's securities, pending a
decision by the Panel. ESG will present a plan to Nasdaq for
achieving the requirements for continued listing, but there can
be no assurance the Panel will grant ESG's requests for continued
listing.

A Current Report on Form 8-K was filed covering both of these
matters.

CONTACT:  ESG Re Limited
          Alasdair Davis
          Phone: +353 1 6750200
          E-mail: alasdair.davis@esg-world.com
          or
          Alice Russell
          Phone: +353 86 819 2945
          E-mail: alice.russell@esre.ie


ESG RE: Fitch Downgrades Insurer Financial Strength Ratings
-----------------------------------------------------------
Fitch Ratings downgraded the Insurer Financial Strength Ratings
of ESG Reinsurance Bermuda Limited, ESG Reinsurance Ireland
Limited and European Specialty Ruckversicherung AG, the principal
reinsurance subsidiaries of ESG Re Limited, Bermuda, to 'B' from
'BB-'.

The rating follows ESG Re's filing of a report to the Securities
and Exchange Commission advising the resignation of Deloitte &
Touche as the company's auditor.

Deloitte & Touche did not explain further on its move, but Fitch
says ESG has obtained a schedule from D&T of accounting
disagreements relating to the financial results of the quarter
ending September 30, 2002.

NASDAQ has also temporarily delisted ESG's securities due to the
company's delay in filing a 10Q report for the period ending
September 30, 2002.

Fitch said the action reflects the negative impact of the issues
on the company's business relationships over the short-term.  The
agency warns that the disagreements will push downhill the
company's already limited financial flexibility; and the shares
delisting, if enforced, will constrain ESG's financial status
further.

The rating agency maintained the ratings on Rating Watch Negative
while the issues remain outstanding.

According to Fitch, the accounting disagreements relates to:

(i) a proposed provision for impairment in the value of ESG Re's
investment in 4Sigma Limited in the amount of USD2.4 million;

(ii) a proposed write-off of ESG Re's deferred tax asset in the
amount of USD1.3m;

(iii) an unspecified increase in ESG Re's legal reserves;

(iv) a proposed provision in the amount of USD0.2m for funds
withheld in connection with a specific agreement;

(v) a proposed write-off of USD1.5m of a receivable due to ESG Re
under a specific agreement;

(vi) a proposed addition to the income statement of USD0.125m,
reflecting an excess of inter-company broker receivables over
inter-company broker payables; and

(vii) disclosure of significant uncertainties relating to the
company's financial position.

The auditor also proposed to restate ESG's financial statements
for the quarter ended September 30, 2001, the fiscal year ended
December 31, 2001, and the quarters ended March 31, 2002 and June
30, 2002 to reflect appropriate accounting for the co-reinsurance
contract ESG Re had with ACE Limited.


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


BUHRMANN NV: Standard & Poor's Downgrades Credit and Debt Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit and senior secured debt ratings on Buhrmann N.V.
to 'B+' from 'BB-', and its subordinated debt ratings on the
group to 'B-' from 'B'. All ratings remained on Credit Watch with
negative implications, where they were placed on Nov. 7, 2002.

Omar Saeed, credit analyst at Standard & Poor's Corporate Ratings
Europe, said the rating action and outlook reflects Standard &
Poor's view that the Netherlands-based company's headroom in its
senior bank debt covenants remains very limited despite
renegotiation announced on December 3, 2002.  The office products
supplier's financial constraints stem from declining operating
performance and poor visibility for 2003.

The rating agency warned that the company will likely face
challenges to maintain profitability in the coming year in spite
of the restructuring plan recently announced.  It says that the
challenge will be due to a difficult trading environment in the
U.S., which is the group's primary market.

Mr. Saeed said Standard & Poor's will closely monitor Buhrmann's
operating performance, particularly the group's compliance with
senior bank debt covenants.


UNITED PAN-EUROPE: Case Summary & 20 Largest Unsec. Creditors
-------------------------------------------------------------
[Editor's Note: This article first appeared in the December 5th
edition of the TCR-EUR.  The following version includes a
corrected debt figure, which was omitted from the original
version.]

Debtor: United Pan-Europe Communications N.V.
        Bowing Avenue 53
        P.O. Box 74763
        Amsterdam, The Netherlands 1070 BT
        aka United and Philips Communications BV

Bankruptcy Case No.: 02-16020

Type of Business: United Pan-Europe Communications N.V. is a
                  holding company which owns various direct and
                  indirect subsidiaries that operate broadband
                  communications networks providing telephone,
                  cable and internet services to both
                  residential and business customers in Europe.

Chapter 11 Petition Date: December 3, 2002

Court: Southern District of New York (Manhattan)

Judge: Robert E. Gerber

Debtors' Counsel: Howard S. Beltzer, Esq.
                  White & Case, LLP
                  1155 Avenue of the Americas
                  New York, NY 10036
                  Tel: (212) 819-8306
                  Fax : (212) 354-8113

Total Assets: E7,021,760,000

Total Debts: E10,130,880,000

Debtor's 20 Largest Unsecured Creditors:

Entity                     Nature Of Claim        Claim Amount
------                     ---------------        ------------
Citibank NA                Indenture Trustee    $4,690,526,335
5 Carmelite Street         for all Series of
London EC 4Y0PA            Bonds
United Kingdom
Attn: Marne Lidster
Tel: 44 207-500-5748

MacKay-Shields             Bonds                  $387,370,000
Financial Corp.
Mr. D. Morgan
9 West 57th Street
33rd Floor
New York, NY 10019
Tel: 212-230-3911

Salomon Brothers Asset     Bonds                  $260,488,000
Management
Mr. P. Wilby
745 Route 3
Rutherford, NJ 07070
Tel: 201-231-0728

Capital Research & Mgt.    Bonds                  $229,565,000
Mr. P. Haaga
One Market, Stewart Towers
Suite 1800
San Francisco, CA 94105
Tel: 415-421-9360

Merill Lynch Investment    Bonds                  $127,000,000
Managers
Mr. V. Lathburg
800 Scudders Mill Road
Plainsboro, NJ 08536
Tel: 609-282-2084

Putnam Investments         Bonds                 $115,020,000
Mr. E. D'Alelio
1 Post Office Square
7th Floor
Boston, MA 02109
Tel: 617-760-1339

Bear Stearns Trading Desk  Bonds                  $92,839,000
Mr. B. Cowley
575 Lexington Avenue
10th Floor
New York, NY 10022
Tel: 212-272-2000

Fidelity Investments       Bonds                  $83,020,000
Mr. R. Pozen
82 Devonshire Street
Boston, MA 02109
Tel: 617-563-7703

Merill Lynch Debt          Bonds                  $72,325,844
Securities

Apollo Advisors            Bonds                  $68,000,000
Mr. T. Doria
Two Manhattanville Road
Purchase, NY 10577
Tel: 914-694-8000

York Capital Management    Bonds                  $65,978,000

Federated Investors        Bonds                  $61,545,000
1001 Liberty Avenue
Pittsburgh, PA 15222

Prudential Investments     Bonds                  $56,885,000
Mr. P. Appleby
100 Mulberry Street
2nd Gateway Center
Newark, NJ 07102
Tel: 973-367-3073

Oppenheimer Funds          Bonds                  $50,585,000
Mr. D. Negri
498 Seventh Avenue
New York, NY 10018
Tel: 800-525-7048

Everest Capital Ltd.       Bonds                  $50,567,000
Mr. E. Graham
65 Front Street
PO Box HM 2458 HM 5X
Hamilton, Bermuda

Philips Digital            Trade Collector        $45,000,000
Networks BV
Professor Holstlann 4
5656AA Eindhoven
The Netherlands

JP Morgan Investment       Bonds                  $40,205,000
Management
60 Wall Street, 23rd Fl.
New York, NY 10260
Tel: 212-483-2323

Teachers Advisors, Inc.    Bonds                  $40,000,000
Mr. D. Schleffer
730 Third Avenue
New York, NY 10260
Tel: 212-483-4021

Morgan Stanley Dean        Bonds                  $34,835,000
Witter & Co.
5, Rue Plaetis L-2338
Luxembourg
Tel: 352-346-46-000

Northwestern Mutual Life   Bonds                  $31,500,000
Insurance Co.
Ms. J. Clark-Gunia
720 E. Wisconsin Ave,
Milwaukee, WI 53202
Tel: 414-271-1444


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


ELEKTRIM SA: Discloses Transactions Executed by Elektrim-Volt
------------------------------------------------------------
The Management Board of Elektrim S.A. announces that on December
4, 2002 it was informed by its subsidiary Elektrim Volt S.A. that
the following contracts were executed on December 3, 2002:

(i) contracts for the sale of electric energy with Zaklad
Energetyczny Warszawa-Teren S.A., Zaklad Energetyczny Tarnow S.A.
and Zaklad Energetyczny Krak¢w S.A., with the total value of PLN
143 million. The deliveries will be carried out from January to
December 2003. ZE PAK S.A will generate the energy provided for
in the contracts.

(ii) agreement with ABB Centrum IT Sp z o.o. providing for the
delivery of transformers and choking-coil earmarked for the
modernization of railway line E-20. Pursuant to the Agreement, a
detailed contract for the delivery of the above for the value of
approximately 4,3mm will be executed by the end of 2002


NETIA HOLDINGS: Court Approves Arrangement Plan for Subsidiary
--------------------------------------------------------------
Netia Holdings S.A. (WSE: NET), Poland's largest alternative
provider of fixed-line telecommunications services (in terms of
value of generated revenues), announced that the District Court
for the City of Warsaw on Wednesday approved the arrangement plan
for Netia South Sp. z o.o., a wholly owned subsidiary of Netia.

Its creditors entitled to vote at the creditors' meeting on
August 29, 2002 unanimously adopted the arrangement plan for
Netia South. The decision will become unappealable after seven
days.

The Court's approval with respect to Netia South's arrangement
plan in Poland is the final stage of the arrangement and
composition proceedings, in connection with Netia's ongoing
restructuring. It also represents the achievement of another
milestone in the implementation of the Restructuring Agreement,
signed by Netia with its creditors on March 5, 2002.

CONTACT:  Netia
          Anna Kuchnio (IR)
          Phone: +48-22-330-2061


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


NIKOIL COMPANY: Fitch Affirms Ratings, Assigns Stable Outlook
-------------------------------------------------------------
Fitch Ratings affirmed the ratings of NIKoil Company at 'B-' for
Long-term 'B' for Short-term, 'D' for Individual, and '5T' for
Support.

The ratings of NIKoil's subsidiary, NIKoil IBG Bank (IBG) were
also affirmed at 'B-' for Long-term, 'B' for Short-term, 'D' for
individual, and '4T' for Support.

The Outlook for the Long-term rating of each entity is Stable.

Fitch noted that while NIKoil's ratings are continuously
supported by its adequate capitalization and liquidity, its
earnings, balance sheet and capital are still heavily exposed to
the share price of LUKoil.  The rating agency also noted that the
profitability of its investment banking function also remains
very modest.

The holding company of a Russian financial services group has the
dominant feature of owning a 8.1% stake in LUKoil, the largest
integrated oil company in Russia.

The rating agency considers NIKoil's profitability low in
relation to the expansion and concentration of its loan.  Fitch,
though, recognizes the increase in the company's funding from
outside the NIKoil group.

Fitch affirms NIKoil's expected acquisition of Avtobank as it
would provide the company a 90-strong branch network and some
retail banking franchise.  It however warns of uncertainties in
the package, including ongoing arguments over Avtovank's present
ownership, outstanding obligations, and particularly, the quality
of its loan portfolio, which, in Fitch's opinion, is very
underprovided against certain concentrations.


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


SWISS LIFE: Holding Announces Successful Capital Increase
---------------------------------------------------------
Following the end of the rights exercise period yesterday, Swiss
Life Holding confirms that more than 99% of the 10,839,704 shares
offered in the capital increase have been subscribed. Credit
Suisse First Boston, acting on behalf of the offering syndicate,
will place in the market today the shares that were not taken up.
Through this capital increase Swiss Life Holding has doubled its
share capital and raised gross proceeds of CHF 856 million.

Swiss Life Holding will further strengthen its capital base
through the concurrent offering of Mandatory Convertible
Securities (MCS). The MCS offering of CHF 200 million (with the
option to increase to CHF 250 million) is expected to be priced
today through an institutional bookbuilding exercise. Based on
advance subscription rights approximately CHF 51 million of this
issue has already been subscribed by existing Swiss Life Holding
shareholders.


ZURICH FINANCIAL: Notes Changes at Subsidiary Group of Companies
-----------------------------------------------------------------
Zurich Financial Services has determined, after a thorough review
of the activities of its subsidiary group of companies, Centre,
that Centre will no longer write new credit enhancement business,
while it will continue to support its existing book of credit
enhancement business.

The structured finite risk insurance and reinsurance business of
Centre, however, will continue to be a core function of the
Zurich Group. Centre will continue to offer innovative and highly
customized solutions in the property and casualty and the life
and health areas to its clients in the North America (including
Bermuda), United Kingdom and Continental European Markets.

Consistent with this decision, Centre's finite risk insurance and
reinsurance business will report to the Zurich North America
business division as one of its major operating business units.
Centre had previously reported on a separate basis.

James J. Schiro, Chief Executive Officer of Zurich, said, "The
decision to exit the credit enhancement business, which was non-
core and no longer met our internal hurdle rate, underlines our
commitment to focus on core markets and core insurance-based
products that provide sustained profitability."

John Amore, Chief Executive Officer of Zurich North America,
added, "I look forward to the close cooperation between the
Centre management team and our other business units, which will
bring the best products and solutions to our clients. The joined
team will be in a very good position to take advantage of
excellent market opportunities that will contribute to the strong
performance of this unit."

In line with the emphasis on Centre's core life and non-life
businesses, Joel Klaassen, previously a Senior Vice President of
Centre and member of its Executive Committee, has been appointed
President and Chief Executive Officer of Centre. He will report
to John Amore.

Zurich Financial Services is an insurance-based financial
services provider with an international network that focuses its
activities on its key markets of North America, the United
Kingdom and Continental Europe. Founded in 1872, Zurich is
headquartered in Zurich, Switzerland. It has offices in
approximately 60 countries and employs well over 70,000 people.

CONTACT:  Shannon Bell
          Zurich Financial Services, Public Relations
          New York
          Phone: +1 212 871 1621

          Zurich Financial Services, Media and Public Relations
          8022 Zurich, Switzerland
          Phone: +41 (0)1 625 21 00
          Fax: +41 (0)1 625 26 41
         Home Page: http://www.zurich.com


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


AES DRAX: Fitch Lowers Senior Secured Bond Ratings to 'CC'
----------------------------------------------------------
Fitch Ratings lowered to 'CC' from 'CCC' the senior secured bonds
issued by AES Drax Holdings Limited.  The rating agency, at the
same time, lowered the senior notes issued by AES Drax Energy
Limited from 'CC' to 'C'.  All ratings remain on Rating Watch
Negative.

The downgrades are the results of Drax's consent to standstill
arrangements with its senior lenders and the senior bondholders.

Under the deal, Drax will pay its senior lenders only the
interest of its GBP905 million facility that comes due December
31, 2002.  Fitch says that failure to pay the principal on the
bank loan amounts to a change in payment terms, which under the
agency's criteria, constitutes a default.

The rating also reflects Fitch's "expectation of some economic
loss in the form of a forgoing of future income or principal."

The downgrade of AES Drax Energy Limited's senior notes,
meanwhile, expresses Fitch's increasing doubts on the company's
ability to meet interest payment on this class of debt when it
comes due on February 28, 2003.  It also reflects an expectation
of a lower recovery level in case of insolvency, due to the
structural subordination of the notes.


AMEY PLC: Partner Buys Amey Out of Tubelines Consortium
-------------------------------------------------------
Jarvis and Bechtel, Amey's partner in the London Underground
contract, decided to assume funding of the engineering firm's
equity interests in the project, while giving the cash-strapped
company until June 30 to buy back its stake.  The move will allow
the project to be completed before the end of the year.

Amey's one-third stake in the London Underground Public Private
Partnership is understood to be worth GBP60 million, says The
Scotsman.

Amey said in a statement that the agreement will at the same
time, facilitate the closure of Amey's ongoing discussions with
its lenders--the impediment which sources close to the consortium
blamed for the company's inability to furnish its share of the
funding.

The parties entered the deal just after Transport Secretary
Alistair Darling moved to halt a legal challenge to the whole
Tube refurbishment program by London Mayor Ken Livingstone.  Mr.
Livingstone claims the PPP deal violates European state aid
rules.

The company's statement said, acting group finance director, Eric
Tracey, will soon make a preliminary report to the board on the
financial updates of the firm.


BRITISH ENERGY: Issues Output Statement
---------------------------------------
Overview

With both units at Torness now fully operational, the UK nuclear
plant remains on track to achieve the revised target, announced
in August 2002, of 63 TWh (plus or minus 1 TWh) by 31st March
2003.

The output figures for both AmerGen and Bruce Power remain in
line with the plan after allowing for the higher number of
planned outages in the current year.

Planned Outages

Uk Nuclear

- Statutory outages were completed at Dungeness B and Heysham 2.
- Off-load refuelling was carried out on one reactor at
Hartlepool.
- Low load refuelling was carried out on one reactor each at
Heysham 2 and Hunterston B.

Bruce Power

- The planned outage on unit 7 continued throughout November.

Unplanned Outages

- One unit at Hinkley Point B carried out an outage to repair a
turbine bearing.

- Gas circular inspection and repair work was completed at
Torness with both units now in service

To see British Energy's Full Release:
http://bankrupt.com/misc/BritishEnergy.pdf

CONTACT:  BRITISH ENERGY
          Paul Heward
          Phone: 013552 62201
          Home Page: http://www.british-energy.com


BRITISH ENERGY: Tory Government Urged to Cancel Bruce Lease
-----------------------------------------------------------
Ontarians risk electricity blackouts if the Tory government
doesn't quickly cancel the lease of eight Bruce nuclear reactors
to British Energy (BREN). The corporation is teetering on the
verge of bankruptcy and may not be able to meet a 50% planned
production increase in time for next summer's hot weather. And
even if BREN produces the electricity, it can sell it to U.S.
consumers for much more than Ontarians are currently paying. Our
free-trade agreements will prevent us from keeping this
electricity in Ontario. Unless the Tories act now, Ontarians
will lose both a large part of their electricity supply and
billions of dollars in revenue.

BREN is no longer financially viable, as required by its lease.
It is currently negotiating both with the British government to
bail it out and with private corporations who are fighting to
take over the Bruce lease for next to nothing. A distress loan
from the British government and the big profit BREN is making
from the Bruce facility is keeping the corporation afloat for
the moment. BREN was supposed to use the enormous profits from
the Bruce to refurbish the reactors so they could operate
another 25 years. Instead the money is being used to help BREN
stave off bankruptcy.

John Wilson, Ontario Electricity Coalition member, says,
"Ontario is facing big electricity shortages because the
government did nothing for five years while it foolishly waited
for the private sector to build supply. The private sector
behaved as it did in California and built next to nothing
resulting in rising rates. If the Tories don't cancel the Bruce
lease, Ontarians will face blackouts."


INPOWER LTD: Fitch Downgrades Senior Secured Bank Loan
------------------------------------------------------
Fitch Ratings lowered the senior secured bank loan rating of
Drax's related company, Inpower Limited, to 'C' from 'CCC'.  The
rating remains on Rating Watch Negative.

The action is in conjunction with the downgrade of AES Drax
Holdings Limited's senior secured bonds to 'CC' from 'CCC', and
AES Drax Energy Limited's senior notes to 'C' from 'CC'.

The downgrade is the result of Drax's consent to standstill
arrangements with its senior lenders and the senior bondholders.

Under the deal, Drax will pay its senior lenders only the
interest of its GBP905 million facility that comes due December
31, 2002.  Fitch says that failure to pay the principal on the
bank loan amounts to a change in payment terms, which under the
agency's criteria, constitutes a default.

According to the international rating agency, the downgrade
reflects "the fact that the payment of the principal is not due
until December 31, 2002 at which time the rating would be
downgraded to 'DD'."  In such scenario, Fitch predicts a recovery
in the range of 50 to 90%.

Fitch said the total amounts outstanding under the Inpower bank
loan and the DrxHold senior secured bonds were c.GBP1.2bn as of
the end of November 2002.

In case of insolvency, Fitch predicts that the value available to
senior lenders will be below the GBP1.2 billion level after
certain costs and outflows resulting from the filing are
deducted.


INSTINET: Plans to Trim Down Workforce to Cut Expenses
------------------------------------------------------
Electronic share-trading platform Instinet, which posted a third
consecutive quarter loss last month, plans to slash 300 jobs in a
move that could save the firm GBP63.9 million in annual expenses.

The announcement is in conjunction with the company's integration
of former rival Island ECN.

Instinet said it would take a GBP37 million charge in the fourth
quarter of the current year and record an additional GBP9.6m of
expenses over the first three quarters of 2003.

According to the Scotsman, Chief Executive Ed Nicoll said, "These
cost reductions are part of a previously announced plan to
eliminate redundant positions within the Instinet-Island
combination, to reduce overheads, and to bring greater efficiency
to the company as a whole."

The 17% reduction in the company's workforce is speculated to
affect staff in both the United States and Europe.

Chief Financial Officer David Grigson said the move is part of
the company's strategy announced earlier this year, and is
consistent with the group's thrust to increase cost savings and
efficiency.

INSTINET is an electronic share-trading platform that is
majority-owned by financial information giant Reuters.  It has
offices in London, Paris, Frankfurt, and Zurich.

The firm is struggling with dismal market conditions, which
lowers trading volumes on its system, and with increased
competition from SuperMontage, a newly launched service from
stock-exchange operator Nasdaq.


MARCONI PLC: Issues Update on Financial Restructuring
-----------------------------------------------------
Following Marconi's announcement on November 21, 2002 on progress
towards its financial restructuring (the Restructuring),
Marconi's Board has now finalised a set of revised proposals with
a coordinating committee of syndicate banks and an informal ad-
hoc committee of b bondholders which will allow the Restructuring
to be formally documented and launched.

These revised proposals were submitted to the full bank syndicate
earlier today.

As a result of these developments, Marconi will delay the
publication of its interim results until it makes a full
announcement regarding the
Restructuring. The company expects to make such an announcement
shortly and confirms that its interim trading results remain
consistent with the updates published at the end of the first and
second quarters.

Marconi still expects to complete the Restructuring in line with
the terms announced in August, including the initial cash
distribution of
#260 million to creditors, of which #95 million has already been
paid in the form of interest payments.

Marconi's Board continues to believe that the proposed
restructuring is in the best interests of Marconi, and its
stakeholders as a whole. The
Board expects that it will continue to receive the support of
both the syndicate banks and the informal ad-hoc committee of
bondholders.

About Marconi plc

Marconi plc is a global telecommunications equipment and
solutions company headquartered in London. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services. The company's aim is to help fixed and
mobile telecommunications operators worldwide reduce costs and
increase revenues.

The company's customer base includes many of the world's largest
telecommunications operators. The company is listed on the London
Stock Exchange under the symbol MONI. Additional information
about Marconi an be found at http://www.marconi.com

CONTACT:  Investor Relations
          Marconi PLC
          Phone: +44 (0) 207 306 1735
          E-mail: heather.green@marconi.com


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

     S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
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Copyright 2002.  All rights reserved.  ISSN 1529-2754.

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