/raid1/www/Hosts/bankrupt/TCREUR_Public/030210.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

                 Monday, February 10, 2003, Vol. 4, No. 28


                              Headlines


* B E L G I U M *

LERNOUT & HAUSPIE: Creditors Ask Exclusive Periods Modification

* F R A N C E *

AIR LIB: Grounded After Rescue Talks With Dutch Investor Failed
AIR LIB: Set to Declare Bankruptcy - Transport Minister
ALCATEL: Appoints Samir Naessany New Senior Vice President
RHODIA S.A.: Moody's Lowers Senior Unsecured Debt Ratings
RHODIA SA: Head Expresses Disappointment Over Rating Downgrade
VIVENDI UNIVERSAL: USA Interactive Plans to Monetize Stake
VIVENDI UNIVERSAL: Issues Letter to the Employees of Canal+ Group

* G E R M A N Y *

BABCOCK BORSIG: Hitachi Acquires Babcock Borsig Power Systems
COMMERZBANK AG: Mulling on Selling Stake in Banco Santander
FAIRCHILD DORNIER: Sells 328-Jet Program to Avcraft Aviation
PLETTAC AG: Two Board Members Leave After Insolvency Filing

* I R E L A N D *

ESG RE: Financial Strength Rating Still on CreditWatch Negative

* L I T H U A N I A *

UKO BANKA: Fitch Ratings Revises Foreign Currency Rating Outlook

* P O L A N D *

BANK PEKAO: Closes Branch in New York, Plans to Sell Tel-Aviv
BRE BANK: Issues Resolution on BRE and Czestochowa Merger

* S P A I N *

UNION FENOSA: Reviews Unprofitable Investment in Philippines

* S W E D E N *

LM ERICSSON: Ratings Under Review for Possible Downgrade
LM ERICSSON: Appoints Carl-Henric Svanberg as New President

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

SYSTOR AG: Management Consultancy Firm to Take Over Operations

* U N I T E D   K I N G D O M *

ABBEY NATIONAL: Announces Changes to With-Profits Bonus Rates
AMEY PLC: Sponsored Transport Scheme Runs Into Trouble
BAE SYSTEMS: British Government Drops Bid for Contract
CABLE & WIRELESS: Hong Kong Firm Clears Issue Regarding Takeover
HP BULMER: Appoints Richard Pennycook New Finance Director
LAMONT HOLDINGS: Suspends Shares Before Appointment of Receivers
LASTMINUTE.COM: Narrows Loss to GBP1.6 MM for First Quarter
MAERSK AIR: Puts Loss-Making British Subsidiary up for Sale
RDL GROUP: Appoints Joint Administrators, Suspends Trading
ROYAL & SUNALLIANCE: Sells Tyndall Investment Management


=============
B E L G I U M
=============


LERNOUT & HAUSPIE: Creditors Ask Exclusive Periods Modification
---------------------------------------------------------------
The Official Committee of Unsecured Creditors, represented by
lawyers at Akin Gump Strauss Hauer & Feld, asks Judge Wizmur to
modify Lernout & Hauspie Speech Products N.V.'s exclusive
periods to allow the Committee to propose a plan of liquidation
because:

        (1) the case is over two years old;

        (2) the Committee believes that the plan of liquidation
            currently on file is not confirmable; and

        (3) the Committee believes that it could be in a
            position to file its own plan shortly.

The Committee reminds Judge Wizmur that L&H NV's most recent
motion seeking an extension of the exclusivity periods provided
the Committee with the right to seek to terminate the exclusive
periods on 15 days' notice, with the burden of proof resting
with L&H NV to show that cause exists for exclusivity to
continue.

L&H NV advised the Court that the issues relating to the
Stonington entities cannot be resolved at this time.  The
Committee believes that, even if a settlement with Stonington is
reached, no "global peace" will result due to the myriad of
similarly situated creditors who can still assert the same type
of claims as Stonington in Belgium and seek pari passu
treatment.  As a result, the Committee believes that L&H NV is
unable to propose a plan of liquidation capable of being
confirmed by the Court.  The Committee, however, believes that
it is in a position to propose a confirmable plan because it is
not under the same constraints as the Debtor, and can propose a
plan that fully recognizes the priority scheme in the Bankruptcy
Code.

The Committee complains that, during this case, L&H NV has
sought and received nine extensions of the exclusive periods.
Despite the fact that L&H NV sold substantially all of its
assets one year ago, the Committee believes that the plan of
liquidation currently on file is not capable of being confirmed
due to conflicts in priority schemes between Belgium and the
United States.  Allowing the exclusive periods to remain intact
will only result in the continued accumulation of administrative
expenses, to the detriment of the Debtor's creditors, and will
not facilitate the progress of this case.  In fact, the
Committee believes that a plan of liquidation that they will
propose is likely the quickest and most efficient way to bring
this case to a conclusion.

            Banks Agree the Committee Should File a Plan

KBC Bank NV, Fortis Bank NV, Dexia Bank Belgium, Deutsche Bank
NV, and Deutsche Bank AG, represented by Adam G. Landis, Esq.
And Kathleen Makowski, Esq., at Klett Rooney Lieber & Schorling,
and by Howard Seife, Esq., and N. Theodore Zink, Jr., Esq., at
Chadbourne & Parke LLP, support the Committee's request.

Ms. Makowski observes that "the plan process has ground to a
halt." L&H NV appears to be unable to propose a plan within a
reasonable period of time, and this case is now more than two
years old.  The Banks believe that terminating exclusivity to
enable the Committee to propose and seek confirmation of a plan
will promote a more expeditious resolution of this case.
(L&H/Dictaphone Bankruptcy News, Issue No. 35; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


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


AIR LIB: Grounded After Rescue Talks With Dutch Investor Failed
---------------------------------------------------------------
French airline Air Lib failed to take off as usual after failing
to secure a firm commitment for financial support from Dutch
investor IMCA.

France's second-largest airline lost its operating license, which
was due to expire but was extended from the end of January to
February 5, and was forced to ground its fleet, leaving 3,200
employees jobless.

The French government refused to renew the carrier's license
without the payment of a EUR100 million to EUR130 million loan,
and an assurance of a financial support from an investor.

The airline, which sprang from the collapse of Swissair's
insolvent French operations, struggled to survive after the
government made it clear it would no longer subsidize the debt-
laden company.

Transport Minister Gilles de Robien said Air Lib's fate now
hinges on decisions to be made by the company's directors and a
French commercial court, which has authority as a mediator.

The ministry also assured it would help find jobs for the
airlines' displaced employees.  According to Associated Press,
President Jacques Chirac asked government transport secretary
Dominique Bussereau to meet with the head of Air Lib and employee
representatives to see if the carrier can be rescued.

The government also promised to take care of passengers stranded
overseas following the grounding of Air Lib.  State-owned carrier
Air France indicated to increase flights between Paris and the
island of Reunion, while Corsair said it would add flights to the
French Antilles.

CONTACT:  AIR LIB
          42 Rue F. Forest
          Imm. Le Sommet
          97122 Jarry-Baie Mahault
          Phone: +590-(0)5.90.32.56.00
          Fax: +590-(0)5.90.26.64.02


AIR LIB: Set to Declare Bankruptcy - Transport Minister
-------------------------------------------------------
Transport Minister Gilles de Robien said Air Lib is set to
declare bankruptcy after Dutch group IMCA withdrew its offer to
take over the operations of the carrier--a deal that could have
allowed the airline to renew its license.

IMCA Vice President Harm Prinsen holds Airbus responsible for the
failure.  IMCA had said it was prepared to take over the ailing
carrier if the European consortium Airbus would sell it 29 Airbus
A319 planes at a bargain price to renew the Air Lib fleet. IMCA
wants to pay less than US$7m each for the planes.

"We had absolutely no possibility of reaching a deal with Airbus,
they proposed a price that was not close to anything we were
expecting" Mr. Prinsen said.  "We have no other choice but to
abandon the deal."

IMCA also earlier withdrew its offer of acquiring the troubled
airline after trade unions rejected a proposal that includes
increasing productivity by 30%.

Founded in July 2001 out of Swissair's insolvent French
operations, Air Lib had aimed to reshape itself into a no-frills
carrier, amidst struggle to reduce operating costs.

CONTACT:  AIR LIB
          42 Rue F. Forest
          Imm. Le Sommet
          97122 Jarry-Baie Mahault
          Phone: +590-(0)5.90.32.56.00
          Fax: +590-(0)5.90.26.64.02


ALCATEL: Appoints Samir Naessany New Senior Vice President
----------------------------------------------------------
Alcatel announces that Samir Naessany, currently Deputy Chief
Financial Officer at Alcatel, has been named Senior Vice
President, Strategy and Business Development of Alcatel's Private
Communications Activities.

Mr. Naessany is now responsible for the expansion of Alcatel's
business to enterprises and institutions who increasingly rely on
communications networks as tools to improve efficiency and
customer relationship. In his new role he reports to Olivier
Houssin, President of Alcatel's Private Communications activities
and member of the Alcatel executive committee.

About Alcatel
Alcatel provides end-to-end communications solutions, enabling
carriers, service providers and enterprises to deliver contents
to any type of user, anywhere in the world. Leveraging its long-
term leadership in telecommunications networks equipment as well
as its expertise in applications and network services, Alcatel
enables its customers to focus on optimizing their service
offerings and revenue streams. With sales of EURO 16.5 billion in
2002, Alcatel operates in more than 130 countries.


RHODIA S.A.: Moody's Lowers Senior Unsecured Debt Ratings
---------------------------------------------------------
Moody's Investors Service lowered the senior unsecured debt
ratings for Rhodia S.A. from Baa3/Prime-3 to Ba2/Not Prime. The
outlook for the ratings is stable.

According to the rating agency, the action reflects the group's
currently weak cash flow/adjusted debt metrics and expectation
that these will deteriorate further in 2003.  It says the group
will face the adverse cash flow impact of recently divested
businesses.

It also reflects near term business & environment challenges due
to higher oil prices and weak demand in particular for the Pharma
& Agrochemical as well as the Automotive, Electronics, and Fibres
businesses.  The rating agency says it expects oil-prices and
hence oil-derivative inputs to remain high. Those business lines
that are foreseen to be especially challenged include those
selling into the automotive and electronics markets, as well as
the pharma business (in particular Chirex).

The action reflects as well ongoing business restructuring
challenges and growing event risk as the major shareholder seeks
a buyer for its shareholding in Rhodia.

The action further shows a rather weak liquidity position for the
group given the strong reliance on 1-2 year facilities, all of
which are restricted by financial covenants, and the EUR 600
million Syndicated Facility by a MAC clause as an event of
default.  Rhodia has a total maturing short-term debt obligations
for 2003 at a high of EUR646 million which includes CP drawings
of about EUR 180 million and the residual being bank debt.

Moody's, though, recognizes Rhodia's ongoing cost-restructuring
program, improving business risk profile, and a historically low
financial expense burden relative to the group's leverage.

The action affects EUR1.8 billion MTN program and EUR800 million
in long-term debt securities.

Current ratings/program impacted by the rating action:

- The Baa3/Prime-3 ratings for the Euro 1.8 bn. Euro-MTN
programme -- lowered to Ba2/Not Prime

- The Baa3 ratings for the Euro 800 million in senior unsecured
bonds -- lowered to Ba2/Not Prime

New ratings assigned:

- A Ba2 Senior Implied rating for Rhodia S.A.

- A Ba2 Senior Unsecured Issuer rating for Rhodia S.A.

The stable outlook, meanwhile, reflects modest operating cashflow
deterioration during 2003 with a clear improving trend expected
for 2004.

But Moody's says that the rating could be raised if the company
achieves improving cashflow/adjusted debt metrics.

Rhodia S.A. is a diversified intermediates and specialty
chemicals group domiciled in Paris, France, and generating
consolidated year 2002 sales of Euro 6.6 billion.


RHODIA SA: Head Expresses Disappointment Over Rating Downgrade
--------------------------------------------------------------
Rhodia Chairman and Chief Executive Jean-Pierre Tirouflet was a
bit disappointed over Moody's downgrade of its senior unsecured
debt rating to junk.  Moody's cut its rating on Rhodia's senior
unsecured debt to Ba2/Not Prime from Baa3/Prime-3.

Mr. Tirouflet expressed his dismay given the company's ability to
reduce its debt over the last year, according to Dow Jones.
Rhodia was able to cut net debt to EUR2.13 billion at the end of
2002, from EUR2.57 billion at the end of 2001.

Mr. Tirouflet was expecting that Moody's downgrade would only
require an additional EUR3 million in financing costs on a loan
raised in the U.S., with no other credit triggers existing.

While a downgrade would make refinancing of debt more expensive,
the company played this down by saying it only has EUR200 million
in loans maturing this year.

Mr. Tirouflet attributed the rating agency's action primarily on
the general uncertainty in the economy, including the
geopolitical impact on oil prices.

Rhodia published on Wednesday its audited annual results for
2002, saying the group achieved its key commitments made at the
end of 2001, consisting of a gradual return to profitability, the
completion of a significant asset divestiture program and the
generation of positive operating cash flow.

It reported EBITDA of EUR798 million against EUR633 million
reported in 2001.  Its financial debt was reduced by EUR516
million through divestments.


VIVENDI UNIVERSAL: USA Interactive Plans to Monetize Stake
----------------------------------------------------------
Barry Diller, Chairman and CEO of USA Interactive, said the
company plans to monetize its 5.4% stake in Vivendi Unviversal
and reinvest the funds.

Mr. Diller said during a conference all to discuss USA
Interactive's latest quarterly results: "Of course we'd like to
monetise the preferred and common equity stakes ... and redeploy
the capital and get the liquidity out of it."

While not expecting to complete the rationalization this year, he
insisted that this would definitely happen, most likely within
the year.

He also said the current attention focused on Vivendi "is going
to allow for some catalyst to happen..."

It is known that Vivendi is in disagreement with USA Interactive,
its venture partner on Vivendi Universal Entertainment, over the
payment of US$620 million in income taxes owed by the latter.

USA Interactive claims Vivendi Universal agreed to pay the sum
under the terms of the US$11 billion sale of its film and
television operations to Vivendi.

It was also reported that the debt-laden French company initiated
actions aimed at minimizing tax liabilities to pave the way for
the sell-off of assets such as Universal Studios and Universal
theme parks.

CONTACT:  VIVENDI UNIVERSAL
          Headquarters
          42 Avenue de Friedland
          75380 Paris Cedex 08
          France
          Phone: +33 1 71 71 10 00
          Fax: +33 1 71 71 11 79
          Contact:
          Investor Relations
          E-mail: investor-relations@groupvu.com

           Daniel Scolan, Executive VP
           Investor Relations
           Phone: +33.1.71.71.12.33
           E-mail: daniel.scolan@groupvu.com
           Laurence DANIEL
           IR Director, Europe
           Phone: +33.1.71.71.12.33
           E-mail: laurence.daniel@groupvu.com
           Edouard LASSALLE
           Associate Director, Europe
           E-mail: edouard.lassalle@groupvu.com

           Vivendi Universal
           New York office
           375 Park Avenue
           New York, NY
           10152-0192
           USA
           Phone: +1 212 572 7000

           USA INTERACTIVE
           Investor Relations
           152 West 57th Street, 42nd Floor
           New York, New York 10019
           Phone: (212) 314-7400
           Fax: (212) 314-7399
           E-mail: ir@usainteractive.com


VIVENDI UNIVERSAL: Issues Letter to the Employees of Canal+ Group
----------------------------------------------------------------
Vivendi Universal issued the following statement Thursday:

Below is a letter from Jean-Rene Fourtou, Chairman and Chief
Executive Officer of Vivendi Universal, that was sent out today
to the employees of Canal+ Group.

Letter from Jean-Rene Fourtou to Canal+ Group employees

A great wave of rumors and attacks is currently seeking to damage
the image of Canal+ Group and put its future in doubt. As a
shareholder, I want to express my determination to support the
group.

Canal+ is not up for sale, and it retains its place in Vivendi
Universal. The debt reduction that is indispensable for Vivendi
Universal will be brought about by the disposal of other assets.
I can announce right now that the Canal+ IPO envisaged last July
is no longer on the agenda.

The restructuring of the Canal+ Group announced in July 2002 is
more valid than ever. It is a two-part plan: restructuring of the
television activities in France, on which we are going to focus
our efforts; and the disposal of most of the other activities,
especially those outside France, when the moment is ripe and
under the best possible conditions.

I have every confidence in Canal+, which has some tremendous
strength. Eighteen years after its launch, the Canal+ premium
channel has nearly 4.5 million subscribers. The channel may have
lost a net total of 70,000 subscribers in 2002, but 400,000 new
households signed up. As for CanalSatellite, it earned 200,000
new subscribers in 2002 and now has a total of more than 2
million.

This shows that Canal+ and its themed channels are very
attractive and have a strong capacity to build loyalty.

Canal+ has been a preferred partner of the soccer world since its
creation in 1984, and it will maintain that position. The same is
true for the film industry. We are doing everything to make sure
things stay that way for the future.

But it is vital that Canal+ restructure, improve its
productivity, and rethink its editorial line. Everyone is now in
agreement on these points.

This is the backdrop against which I have asked Bertrand Meheut
to take over the chairmanship of Canal+ Group. I will support the
management team in both its organizational and editorial
decisions.

I know the capacities of Bertrand Meheut as an entrepreneur and a
manager. I know he is totally upright and capable of bringing
together teams and motivating them, and of creating a new growth
dynamic.

At tomorrow's Supervisory Board meeting, the need to unify
management is going to lead to the departure of Xavier Couture,
with his full agreement. I am very happy with the spirit of
responsibility that has reigned on all sides during the
installation of these changes to General Management. I want to
tell you that, throughout the past months, I have greatly
appreciated the commitment and courage of Xavier Couture, and
would like to thank him personally.

The Canal+ Group is more than capable of achieving brilliant
success. That success will be equal to the motivation and
enthusiasm of each and every one of you.

With my sincere regards

Jean-Rene Fourtou

CONTACT:  VIVENDI UNIVERSAL
          Paris
          Media
          Antoine Lefort
          Phone: +33 (1) 71.71.1180
          Alain Delrieu
          Phone: +33 (1).71.71.1086
          or
          New York
          Anita Larsen
          Phone: +(1) 212.572.1118


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


BABCOCK BORSIG: Hitachi Acquires Babcock Borsig Power Systems
-------------------------------------------------------------
The Japanese Babcock-Hitachi K.K. (BHK) and the German Babcock
Borsig AG signed an agreement for the acquisition of 90% of
Babcock Borsig Power Systems GmbH (BBPS) by BHK. The closing of
the transaction is subject to conditions usual in this type of
transaction and is expected to be finalized by March 31, 2003.
Both contracting parties have agreed to keep the particulars of
today's conclusion of the contract and any further negotiations
strictly confidential.

On the signing of this contract, Hayato Ogawa, Chief Executive
Managing Director of Babcock-Hitachi Kabushiki Kaisha said, "The
acquisition of Babcock Borsig Power Systems GmbH gives us a
strategical entry into the important European power plant
market."

For the Chairman of the Board of Babcock Borsig AG, Horst
Piepenburg, this prompt interest in the rescue company that was
established as recently as in October 2002 is a confirmation of a
solid and logical concept: "Babcock Borsig PowerSystems is a real
powerhouse. In Babcock-Hitachi, we are gaining a strong
shareholder in energy market that is set to expand quite
substantially in the coming years."

BHK is a worldwide leader in power engineering processes,
manufacturing, erection and construction of fossil fuel boilers
and pollution control systems. Employing a worldwide workforce of
more than 2.800 the company generates sales of 120 billion Yen
(approx. 930 million Euro). BHK has 12 other companies affiliated
to it in Japan and runs foreign branches in Mexico, China,
Singapore, Australia, and the Philippines.

BBPS and BHK have joint historical roots. Deutsche Babcock was
founded in 1898, Japanese Zenma Works Co., Ltd in 1908 as a
subsidiary of Babcock&Wilcox Ltd., UK, established in London in
1891. In 1953, Hitachi Ltd. And Babcock&Wilcox Ltd. set up
Babcock-Hitachi K.K., which was merged with the independent
Hitachi Boiler Co, Ltd in 1965. Hitachi acquired Babcock&Wilcox
remaining share of BHK in 1987. Babcock&Wilcox did not sell its
participation in Deutsche Babcock AG until 1975.

Babcock Borsig PowerSystems and Babcock-Hitachi have submitted a
joint offer for the setup of BOA 2, the brown coal fired power
plant with optimised plant technology (abbreviated "BOA" in
German) in Neurath. Babcock Borsig Power GmbH was already
involved in the setup of BOA 1 in Niederauáem, which has an
efficiency of 43 per cent.

With this, Babcock-Hitachi not only ensures its own entry into
the European market; it also expects high synergy effects by the
combination of qualified workforce and know-how of both of
Babcock Borsig and Babcock-Hitachi. BHK Chief Executive Managing
Director Ogawa expressed a vigorous interest in keeping Babcock
Borsig Power Systems GmbH as a German company with its home in
Oberhausen.

Since Babcock-Hitachi predominantly focuses on the area of power
engineering, the company is now looking for a strong partner for
the service sector of BBPS. In this regard, the Chairman of the
Board of Babcock Borsig AG, Horst Piepenburg, and the creditors'
trustee, Dr. Helmut Schmitz, have already commenced negotiations
with investors.

Says Schmitz, "We were able to conduct specific talks with
investors much sooner than expected by most because of an
persuasive conception for the Babcock Borsig Power systems GmbH.
I am convinced that our negotiations will help strengthen Babcock
Borsig PowerSystems even further."

                     *****

Babcock Borsig filed for insolvency in July 2002.  Dr. Helmut
Schmitz, Krefeld, was appointed as the creditors' trustee for all
of Babcock and 18 other companies.

CONTACT:  BABCOCK'S TRUSTEE
          Dr. Helmut Schmitz & Thomas Schmitz - Lawyers
          Am Flohbusch 1
          47802 Krefeld
          Phone: 02151 / 965350
          Fax: 02151 / 965360
          E-Mail: radr.Schmitz@t-online.de


COMMERZBANK AG: Mulling on Selling Stake in Banco Santander
-----------------------------------------------------------
Chief Executive Officer Klaus-Peter Mueller said Commerzbank is
still considering the sale of its 1.8% stake in Banco Santander
Central Hispano.

While confirming that both banks could sell their stakes in each
other, Mr. Mueller said, it has not yet decided on the sell-off
"because of the general development of Santander, which hasn't
been satisfactory for a sale."  Banco Santander Central Hispano
also owns a 3.8% stake in Commerzbank.

At the close of trade Wednesday, Commerzbank's stake in the
Spanish bank was worth around EUR493 million.

The German bank, which recently recorded a pre-tax loss of EUR372
million in its results for financial year 2002, is undertaking a
restructuring aimed at achieving break-even for 2003.

It is planning to divest non-core industrial and financial
holdings to finance possible acquisitions, to save equity and to
concentrate on core activities.

The bank's holdings also include a 10% stake in Linde AG, a 10.5%
stake in Buderus AG and a 9.9% stake in Heidelberger
Druckmaschinen AG, according to Deutsche Boerse.

CONTACT:  COMMERZBANK AG
          Kaiserplatz
          60261 Frankfurt, Germany
          Phone: +49-69-136-20
          Fax: +49-69-28-53-89
          Homepage: http://www.commerzbank.com
          Contacts: Klaus-Peter MAller, Chairman
                    Axel Frhr. v. Ruedorffer, Managing Director


FAIRCHILD DORNIER: Sells 328-Jet Program to Avcraft Aviation
------------------------------------------------------------
U.S. aerospace group Avcraft Aviation bought the 328-jet program
of German-U.S. regional aircraft manufacturer Fairchild Dornier,
which filed for insolvency in April 2002.

Speculations circulate that Avcraft is planning to restart the
aircraft at the plant near Munich and possibly take on 220
members of staff.

When it filed for insolvency last year, Fairchild Dornier hoped
to sell its 70-seat 728 and 928 jet programs.  The programs had
higher-than expected development costs as airlines delayed orders
after the September 11 attacks in the United States.

But EADS, Boieng, Bombardier and Alenia all withdrew from
bidding.  A Russian consortium was then considered; however, a
committee of creditors rejected its offer and voted for the group
to be liquidated in December.

CONTACT:  FAIRCHILD DORNIER CORPORATION
          Airfield Oberpfaffenhofen
          82230 Wessling, Germany
          Phone: +49-8153-30-0
          Homepage: http://www.faidor.com
          Contacts: Charles A. Pieper, Chairman
                    Louis F. Harrington, Chief Executive Officer

          AVCRAFT AVIATION
          235 Airport Dr. #6
          Tyler, TX 75704
          Phone: (903) 593-1100
          Fax: (903) 593-4700
          Homepage: http://www.av/craft.com


PLETTAC AG: Two Board Members Leave After Insolvency Filing
-----------------------------------------------------------
Two colleagues in the board of German scaffolding group Plettac
AG resigned a few weeks after Plettac filed for insolvency
proceedings in Hagen Court. Chairman Rolf Hengstenberg and board
member Jens Reuter left the insolvent company at the same time.

Last month Plettac announced it was filing for insolvency
proceedings since deferral concept with banks failed to
materialize and existing scaffolding debt can no longer be
finalized.

The crisis was primarily caused by the failed financing of
scaffolding sales in the years after Germany's reunification. As
a result of the burdens stemming from the sales financing,
Plettac has recorded significant losses - mainly in the German
scaffolding division - since 1999.

Plettac AG heads the Plettac group, which currently has four
divisions and around 3,600 employees and acts as the holding
company for the German and foreign subsidiaries.

Plettac's court appointed provisional trustee is Dr. Winfrid
Andres, Dusseldorf.  The managing board's advisor is Cologne-
based insolvency lawyer Dr. Bruno M. Kubler when it filed for
bankruptcy.

CONTACT:  PLETTAG AG
          Shareholder Care
          Waltraud L"cherer
          Phone:+49 2391 815-276
          Fax:+49 2391 815-310
          E-Mail: info@plettac.de
          Homepage: http://www.plettac.de/
          Contacts: Dr. Eberhard von Perfall, Chairman


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


ESG RE: Financial Strength Rating Still on CreditWatch Negative
---------------------------------------------------------------
Fitch Ratings maintained the Rating Watch Negative outlook on the
'B' 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.

The rating was assigned in December following the resignation of
Deloitte & Touche as the company's independent auditors with
effect from November 22, 2002.

Fitch's recent statement follows the delisting of ESG Re
Limited's securities from Nasdaq on February 4.  The Nasdaq
Listing Qualifications Panel took the action due to the failure
of the company to file its Form 10-Q's for the quarter ended
September 30, 2002 on time, and to file amendments to previously
filed reports reflecting anticipated restatements in its
financial statements.

Fitch maintained the rating as it already reflect the delisting
of the company's shares from Nasdaq, which it says would reduce
the financial flexibility of the company.  Hence, no further
rating action will be undertaken in relation to the event.

It was known that Deloitte & Touche provided the company with a
list of accounting disagreements related to the quarter ending
September 30, 2002.

Included in the disagreements provided by Deloitte & Touche was
one reportable event: the accounting of a co-reinsurance contract
with ACE Limited. Deloitte & Touche proposed the event as a
restatement to the company's financial statements for the quarter
ended September 30, 2001, the fiscal year ended December 31,
2001, and the quarters ended March 31 and June 30 2002.

Fitch says it will remain in close contact with BDO
International, the new auditors, in order to review BDO's audit
conclusions as they become available.


=================
L I T H U A N I A
=================


UKO BANKA: Fitch Ratings Revises Foreign Currency Rating Outlook
----------------------------------------------------------------
Fitch Ratings affirmed the Long-term foreign currency rating of
Lithuania's Ukio Bankas at 'B+' and revised the Outlook to
Negative from Stable.  The Short-term, Individual and Support
ratings have also been affirmed at 'B', 'D/E' and '5',
respectively.

According to the international rating agency, the change in
outlook "reflects the concerns Fitch has over the bank's ability
to generate sufficient revenues and internal capital, as well as
some remaining doubts as to whether it has effectively withdrawn
from risky overseas investments."

Fitch says it is not wholly convinced that the bank has withdrawn
its exposure to the high-risk Bosnian and Ukrainian markets
because of the opacity surrounding a 9.99% stake Ukio bankas
holds in an investment holding company that invests in these
markets and still carries the bank's name.

The Support rating, meanwhile, reflects the fragmented
shareholder structure of the bank.  Fitch observes there is no
shareholder owning more that 10% of the bank, and even if there
are other shareholders, support from these investors cannot be
relied upon.

Support from the Lithuanian authorities is possible but not
certain either, given Ukio's position in the market.

Ukio is the fifth largest bank in Lithuania with only a 2.5%
share of banking assets.


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


BANK PEKAO: Closes Branch in New York, Plans to Sell Tel-Aviv
-------------------------------------------------------------
The Management Board of Bank Pekao SA informs, that due to lack
of prospects for achieving satisfactory level of return on
invested capital by Bank Pekao Tel Aviv Ltd. and Bank Pekao's
branch in New York, it decided to liquidate its New York branch
and will begin discussions regarding the sale of Pekao Tel Aviv
Ltd.

The balance sheet amount of Bank Pekao Tel Aviv Ltd as of 30th
September 2002 amounted to PLN 249.5 mln, which is equal to 0.4%
of the total consolidated balance sheet of Bank Pekao at the that
day.

The balance sheet amount of Bank Pekao's branch in New York as of
30th September 2002 amounted to PLN 727.6 mln, which is equal to
1.1% of the total consolidated balance sheet of Bank Pekao at the
same day.

Provisions for coverage the costs of liquidation of the branch in
New York have been created and included into the Bank's profit
and loss account for the year 2002.

                     *****
In August, Fitch Ratings downgraded Bank Pekao's individual
rating from 'C' to 'C/D'.

Fitch said the present negative macroeconomic environment in
Poland has materially affected Pekao's loan portfolio quality.
The bank reported a net loss for 2Q 2002, caused by high loan
loss provisions, the TCR reported.


BRE BANK: Issues Resolution on BRE and Czestochowa Merger
---------------------------------------------------------
The main topic of the 13th Extraordinary General Meeting of BRE
Bank was the plan to merge with Bank "Czestochowa," proposed by
the Management Board of BRE Bank. The adopted resolution provides
that the two banks will be merged pursuant to Art. 492.1.1 of the
Code of Commercial Partnerships and Companies, i.e., by
transferring all assets of Bank "Czestochowa" SA to BRE Bank SA
(the acquiring bank) in exchange for BRE Bank SA shares to be
given by BRE Bank SA to the shareholders of Bank "Czestochowa"
SA.

The merger will take place without increasing the share capital
of BRE Bank SA, pursuant to Art. 515 and Art. 362.1.7 of the Code
of Commercial Partnerships and Companies. The Banking Supervision
Commission approved this form of merger, pursuant to Art. 124.3
of the Banking Law, on 18 November 2002.

In his address opening the Meeting, Deputy President Slawomir
Lachowski emphasised that "the merger of BRE Bank and Bank
'Czestochowa' has important economic foundations. Thanks to full
integration of the operations of the two banks, which now
constitute a banking capital group, the merger is expected to
provide significant cost reductions and other financial and
operating benefits. It must be stressed that the effectiveness of
management processes can thus be improved by using the modern
know-how of BRE Bank. The merger of the banks will also give the
existing clients of Bank 'Czestochowa' SA access to state-of-the-
art technologies and a wide range of banking services offered by
BRE Bank SA."

According to adopted assumptions, the planned merger of the banks
will be completed by the end of February 2003.

                       ******
The merger is expected to strengthen BRE Bank's position in the
retail
banking market after it posted readjusted 2002 results with over
PLN100 million (US$26 million) losses, contrary to the assurance
of the bank's President Wojciech Kostrzewa that the entity would
have clean accounts for year 2002.


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


UNION FENOSA: Reviews Unprofitable Investment in Philippines
------------------------------------------------------------
Electric utility Union Fenosa SA is currently reviewing its
investment in Manila Electric Co, the utility that has been told
by the Supreme Court to undertake a major refund after failing to
prop up its share price and add premium to its investments.

Reports say Emilio Vicens, Union Fenosa country representative,
met with Meralco officials and asked for a plan to increase the
value of Union Fenosa's shareholdings.

Meralco officials reportedly blamed the regulatory process, which
prevented it from adjusting rates since 1994, for failing to meet
profit targets.

However, Meralco corporate communications head Elpi Cuna rejected
suggestions that Union Fenosa is planning to pull out of Meralco.

Citing his own meeting with Vicens, Cuna said: "There is no truth
to that. It's false. Withdrawal is not even in the works."

Union Fenosa has a 10% stake in Meralco.  It injected US$100
million in equity in 1994 and bought additional shares in 1999 at
PHP100 per share.

First Philippine Union Fenosa, a joint venture of Meralco parent
First Philippine Holdings Corp and Union Fenosa holds Union
Fenosa's investments.

CONTACT:  UNION ELECTRICA FENOSA, S.A.
          Avenida de San Luis, 77
          28033 Madrid, Spain
          Phone: +34-91-567-60-00
          Fax: +34-91-567-63-29
          Homepage: http://www.uef.es
          Contacts: Carmela Arias y DĦaz de R bago,
                    Honorary Chairperson
                    Julio Hern ndez Rubio, Honorary Chairperson

          MANILA ELECTRIC COMPANY
          Meralco Compound, Ortigas Ave.
          Pasig City, Metro Manila 0300, Philippines
          Phone: +63-2-1622-0
          Fax: +63-2-1622-8501
          Homepage: http://www.meralco.com.ph
          Contacts: Manuel M. Lopez, Chief Executive Officer
                    Jesus P. Francisco, Chief Operations Officer
                    Daniel D. Tagaza, Comptroller


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


LM ERICSSON: Ratings Under Review for Possible Downgrade
--------------------------------------------------------
Moody's Investors Service placed on review for possible downgrade
the Ba2 bond and senior implied ratings of Telefonaktiebolaget LM
Ericsson, following a deeper than expected decline in Ericsson's
revenues in the fourth quarter of 2002. The Not-Prime rating of
Ericsson for short-term debt has been confirmed.

The action, which affected approximately EUR 5.0 billion of Long-
Term Debt, was also influenced by Ericsson's worrisome sales
outlook, and the concern that orders may not yet be stabilized
this year.

Moody's says it has not seen any indication that operators will
loosen their grip on conservative spending profile, which could
result to a continued weak investment climate for the mobile
systems market.  Ericsson expects the market to decline by as
much as 10% this year.

The rating agency is concerned about the erosion on the
Stockholm-based company's cash balances on the firm's failure to
increase its revenue after the first quarter in line with
expectation.

The concern is raised against Ericsson's historic cash burn
experience, before working capital reductions and proceeds from
asset disposals, and including substantial debt maturing in 2003.

Moody's says it will focus its review "on the various scenarios
for Ericsson's future revenue and cost profile, as well as the
likely time frame for a return to positive cash flow generation
from its core business, mobile network systems, and the company's
financial flexibility through this period."

Ratings under review are the Ba2 of:

Telefonaktiebolaget LM Ericsson -- for Euro Medium Tem Notes, the
$600 million revolving credit, and the issuer and senior implied
rating.

The following Not-Prime ratings were confirmed:

Ericsson Treasury Services AB -- for guaranteed US-commercial
paper and

Ericsson Treasury Services U.S. Inc. -- for guaranteed US-
commercial paper.

Ericsson is a leading developer and manufacturer of mobile
telecom and datacom equipment.  It recorded revenues of about
SEK146 billion (EUR 15.8 billion) in fiscal year 2002.


LM ERICSSON: Appoints Carl-Henric Svanberg as New President
-----------------------------------------------------------
The Board of Directors has appointed Carl-Henric Svanberg as the
new President and CEO of Ericsson, effective April 8, 2003.

                            *****

Ericsson is shaping the future of Mobile and Broadband Internet
communication through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.

Last year, Ericsson planned to cut jobs as part of the company's
plan to have annual breakeven costs of SEK 120 billion (EUR12.87
billion) in 2003.

Ericsson made a prediction that the telecom equipment environment
will remain "uncertain with few signs of stabilizing in the near
term."

CONTACT:  ERICSSON
          Investor Relations
          Glenn Sapadin
          Phone: 212/685-4030
          E-mail: Investor.relations@ericsson.com

          Pia Gideon, Vice President, External Relations
          Phone: +46 8 719 28 64
          E-mail: pia.gideon@lme.ericsson.se
          Ase Lindskog, Director, Media Relations
          Phone: +46 730 24 48 72
          E-mail: ase.lindskog@lme.ericsson.se

          Investors
          Anna Dimert, Program Manager, Investor Relations
          Ericsson Corporate Communications (Sweden)
          Phone: +46 8 719 4414
          E-mail: investor.relations@lme.ericsson.se


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


SYSTOR AG: Management Consultancy Firm to Take Over Operations
--------------------------------------------------------------
Swiss-based management consultancy firm Accenture AG will take
over operations at Systor AG, a unit of UBS AG's UBS Capital,
effective March 1.

The acquisition is within the two-month deadline set by Systor's
bankruptcy administrator.

Systor Group sought provisional creditor protection in December
after failing to receive a cash injection from its creditor banks
and its majority owner, UBS.  The move follows application for
creditor protection of two of the group's German units in
November.

A UBS spokeswoman said Systor suffered from a deep slump in the
IT market and the company's inability to cut costs as revenue
falls.

520 of the total 620 employees of the company will be kept on,
including all the employees of Systor Business Services AG, the
companies said.

No financial details were provided, awaiting approval of the
transaction by the bankruptcy administrator and key clients.

CONTACT:  SYSTOR AG
          Baslerstrasse 60
          CH-8048 Zurich
          E-mail: info@systor.com
          Phone: +41 1 405 3111
          Fax: +41 1 405 3113
          Home Page: http://www.systor.com
          Contact:
          Ulrich F. Kunz, Chief Executive Officer
          Felix Aeschlimann, Financial Solutions

          ACCENTURE AG
          Fraumnsterstrasse 16 / Postfach
          8022 Zrich
          Switzerland
          Phone: 01 219 98 89
          Fax: 01 219 88 89
          Homepage: www.entdecke-accenture.com


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


ABBEY NATIONAL: Announces Changes to With-Profits Bonus Rates
-------------------------------------------------------------
Changes to annual bonus rates and payouts for with-profits
policies from Abbey National Life, Scottish Mutual and Scottish
Provident were announced Thursday.  With effect from 1 March
2003, annual bonus rates have been set at between 0% and 4% for
with-profits policies1. Unitised terminal bonus rates have also
been set.  These now range from 0% to 17.5%2.

Rationale for the cuts
The changes to the bonus rates are a result of the continued fall
in the U.K. and world stock markets.

Since the bonus rates were last reviewed in September 2002, stock
markets have continued to experience difficult conditions, with
the FTSE 100 hitting a seven year low on 27 January 2003. The
FTSE 100 fell 25% in 2002, and has fallen by almost 50% since it
peaked in 1999.  Low long-term interest rates are also reducing
income on the non-equity investments in the fund, such as long-
dated gilts and bonds.

This investment climate affects all with-profits providers, and
reductions in bonus rates are being applied across the industry.

A full view of the report can be viewed at this URL:
http://bankrupt.com/misc/ABBEYNATIONAL.htm

CONTACT:  ABBEY NATIONAL
          Thomas Coops
          Director of Corporate Affairs
          Phone: 020 7756 5536

          Christina Mills
          Head of Media Relations
          Phone: 020 7756 4212

          Jon Burgess
          Head of Investor Relations
          Phone: 020 7756 4182

          Matt Young
          Media Relations Manager
          Phone: 020 7756 4232


AMEY PLC: Sponsored Transport Scheme Runs Into Trouble
------------------------------------------------------
A pioneering transport scheme, whose sponsorship is led by Amey,
has run up debts of GBP100 million, bringing further uncertainty
to the future of the company, which is already in talks with
banks.

Croydon Tramlink, which brought trams back to south London, does
not have "sufficient funds to continue trading beyond March 25,
2003," documents filed at Companies House show.  It suffered a
34% increase in pre-tax losses for the year to March 31, 2002
while its operating losses more than doubled to GBP1.58 million.

But Amey insisted that the banks were confident they could come
up with a solution, according to The Guardian.  The report says,
its own exposure was eliminated through writing off the value of
its stake late last year.

Analysts speculate the amount to be about GBP20 million of the
GBP80-million charge Amey took over a series of problems.

An Amey spokeswoman said "The banks are reasonably positive about
finding a way forward."

But Royal Bank of Scotland, the lead bank behind Croydon
Tramlink, declined to comment, saying only that rescue talks "are
ongoing."

Amey is currently cutting overhead expenses in its bid for
survival.

Shares in Amey went down more than 90% in 2002 as investors
gradually lose confidence in the company.  The drop in share
value resulted to the resignation of Chief Executive Brian
Staples in December. Two finance directors of the company also
departed from the company's board, further aggravating the
situation.

The company issued several profit warnings and changed its
accounting for contract bidding costs. The latter turned an
underlying profit of GBP55 million in 2001 into a GBP18.3 million
loss.

CONTACT:  AMEY PLC
          Sutton Courtenay
          Abingdon, Oxfordshire OX14 4PP, United Kingdom
          Phone: +44-1235-848-811
          Fax: +44-1235-848-822
          Homepage: http://www.amey.co.uk


BAE SYSTEMS: British Government Drops Bid for Contract
------------------------------------------------------
The British government dropped BAE Systems and another unnamed
firm from a two-company short list of bidders for a GBP800
Watchkeeper surveillance aircraft contract, the Financial Times
says.

Officials from the Ministry of Defense denied suggestions that
BAE was being excluded, saying that the decision was based purely
on technical and cost considerations.

The selected bidders were reportedly non-British companies Thales
and Northrup Grumman Corp of the US.

Last month, Standard & Poor's Ratings Services downgraded its
short-term corporate credit and commercial paper ratings on BAE
Systems PLC to 'A-2'from 'A-1', following the company's
announcement of cost overruns and delays on the GBP2.8 billion
Nimrod and GBP2 billion Astute contracts with the British
Ministry of Defense.

Still, the U.K. Ministry of Defense has chosen BAE SYSTEMS as the
Prime Contractor for the design, development, construction,
systems integration and support of the U.K. Royal Navy's two new
aircraft carriers--a project estimated worth almost GBP10 billion
(US$16.5 billion, EUR15 billion).

CONTACT:  BAE SYSTEMS
          Airbus UK New Filton House
          Filton, Bristol BS99 7AR
          United Kingdom
          Phone: +44 (0) 117 969 3831

          BAE SYSTEMS Advanced Technology Centre
          PO Box 5, Filton, Bristol BS34 7QW, United Kingdom
          Phone: +44 (0) 117 936 6024
          Fax: +44 (0) 117 936 3733

          Contact:
          Investor Relations
          E-mail: investorrelations@baesystems.com


CABLE & WIRELESS: Hong Kong Firm Clears Issue Regarding Takeover
----------------------------------------------------------------
Pacific Century Cyberworks issued a statement in response to
reports that it has submitted a takeover offer to Cable &
Wireless:

The Company confirms that a preliminary approach was made to the
chairman of C&W by way of letter dated December 31, 2002
indicating an interest in engaging in discussions regarding a
possible takeover offer for C&W, but such approach was rebuffed
by C&W in a letter dated January 27, 2003. The Company further
confirms that it has not made a takeover offer for C&W.

Further, the Company is not engaged in any negotiations with C&W
with respect to a potential offer or any other prospective
transaction nor has it made any decision to proceed with any
transaction with C&W.

Furthermore, the Company has no current intention to repurchase
the Company's shares held by C&W.

In the circumstances, the Company will continue to monitor
developments in relation to C&W but emphasises that no decision
has been made whether to make any further approach. Whilst the
Company is still considering its options in relation to C&W
(which may or may not result in participating in an offer for
C&W), it would not consider proceeding further unless it was
offered a reasonable opportunity to undertake appropriate due
diligence with regard to C&W.

On Wednesday, the Financial Times said Hong Kong's Pacific
Century Cyberworks (J.PCC) made a takeover approach to the UK's
Cable & Wireless PLC but was rebuffed.  The report said, PCCW is
still understood to be interested in pursuing the offer.


HP BULMER: Appoints Richard Pennycook New Finance Director
----------------------------------------------------------
Troubled cidermaker HP Bulmer Holdings has appointed Richard
Pennycook, former chief executive of motorway services operator
Welcome Break, as new group finance director.

Mr. Pennycook is known for his considerable experience in the
consumer sector and working in turnaround situations, including
that of Welcome Break Group and Laura Ashley.

The company said Mr. Pennycook, a former finance director of JD
Wetherspoon, had accepted a lower basic salary than he had taken
in his last job as chief executive at Welcome Break, though the
package included a performance-related element.

Miles Templeman, the new Bulmers chief executive, said it had
been crucial that Mr Pennycook had been able to start immediately
given the July deadline for completing the refinancing of its
GBP130 million debt.

Bulmers has plans of selling its drinks distribution arm and
launch a rescue rights to reduce debts.  It is also considering
an outright sale of the company.

The group is in search for a finance director after former
finance director, Alan Flockhard, step down on the revelation of
a GBP3.8 million promotional costs in its books.

CONTACT: HP BULMER
         Miles Templeman, Chief Executive
         Phone: 01432 352000

         Smithfield Financial
         John Kiely
         Phone: 020 7360 4900


LAMONT HOLDINGS: Suspends Shares Before Appointment of Receivers
----------------------------------------------------------------
Northern Bank suspended shares in Lamont Holdings PLC ahead of
the appointment of administrative receivers to Lamont and its
principal trading subsidiary Lamont Textiles Ltd.

Earlier, Lamont Holdings subsidiary Lamont Textiles, filed for
administration and resolved to petition the court for the
appointment of an Administrator "to provide protection" for its
business while it seeks to restructure itself.

Lamont completed a GBP28 million restructuring program last
summer, but it failed to bring the company back to profitability.

An interim pre-tax losses of GBP569,000 for the six months to
June 30, against losses of GBP548,000 the year before was
reported in September.

The textiles and fabrics group blamed a shortage of working
capital and an ongoing delay in the receipt of non-trading cash
receipts from an asset disposal, according to a report of TCR-EU.

According to Lamont, trading in the company's preference and
ordinary shares was suspended on AIM.

Receivership, however, is not expected to result in a surplus
available for shareholders.

CONTACT:  LAMONT HOLDINGS PLC
          Lamont Ho
          Purdy's La
          Belfast
          BT8 6AX
          Phone: (028) 9049 1111
          Fax: (028) 9049 1007


LASTMINUTE.COM: Narrows Loss to GBP1.6 MM for First Quarter
-----------------------------------------------------------
Lastminute.com announces Quarter 1 2003 results and the
enhancement of its Executive Management Team.

Customer conversion rate improved to 25.6% from 16.1% year-on-
year

Total transaction value for the Quarter grew by 174.4% year-on-
year to GBP87.1 million (Q1 2002: GBP 31.7 million)

Gross profit for the Quarter up 153.8% year-on-year to GBP 11.3
million (Q1 2002: GBP 4.5 million)

Customer acquisition costs fall by GBP 1.70 to GBP 9.20 per
customer for Quarter 1 compared with the same period last year

Group EBITDA loss of GBP 1.6m for the Quarter as expected, a
reduction of 69.1% compared with the Quarter 1 2002 EBITDA loss
of GBP 5.1m

Loss (before goodwill amortisation and taxation) down 46.5% year-
on-year to GBP 3.8 million (Q1 2002: loss GBP 7.2 million)

Operating cash outflow (before exceptional items) of GBP 7.4
million for the Quarter, (Q1 2002: GBP3.8 million), reflecting
the increased level of business following acquisitions,  seasonal
working capital movements and additional capital expenditure

Cash balance remains strong at GBP41.9 million (Q1 2002: GBP36.5
million)

Successful launch of "Breakbuilder", the lastminute.com dynamic
packaging product

Allan Leighton, Chairman said:
"lastminute.com continues to make progress.  Despite the
uncertain political and economic environment that Europe is
facing, our business model allows us to anticipate 2003 being
another year of sustained and improving performance."

Brent Hoberman, Chief Executive, added:
"We have achieved another quarter of significant progress.  This
strong performance reflects our widened geographical spread and
increased depth of offering, as evidenced by the successful
launch of our dynamic packaging product, Breakbuilder, in
November 2002."

About lastminute.com
lastminute.com operates directly in eight European countries and
participates in four international joint ventures, providing
inspirations and solutions for customers at the last minute. At
31 December 2002 lastminute.com had over 6.8 million subscribers
to its weekly newsletter and had established over 14,700 supplier
relationships. lastminute.com remains the leading independent
travel and leisure site across six countries.

The business is based on the idea of matching supply and demand.
lastminute.com offers consumers opportunities to acquire airline
tickets, hotel rooms, package holidays, entertainment tickets,
restaurant reservations and food delivery, speciality services,
gifts and auctions in the United Kingdom, France, Germany, Italy,
Sweden, the Netherlands, Spain, Belgium, Australia, New Zealand,
South Africa and Japan.

To see Lastminute.com's Financial Results:
http://bankrupt.com/misc/Lastminute.pdf

CONTACT:  LASTMINUTE.COM
          Phone: +44 (0) 20 7802 4498
          Brent Hoberman, Chief Executive Officer
          Martha Lane Fox, Group Managing Director
          David Howell, Chief Financial Officer

          Hudson Sandler
          Phone: +44 (0) 20 7796 4133
          Lesley Allan
          Noemie de Andia


MAERSK AIR: Puts Loss-Making British Subsidiary up for Sale
-------------------------------------------------- --------
Maersk Air, the Danish airline, is selling its loss-making U.K.
subsidiary, Maersk Air Ltd., according to daily Boersen.

Maersk Air Ltd (MAL) has been flying in the BA livery since 1993,
when it took over the operation known formerly as Birmingham
Executive Airways and later as Birmingham European Airways.

MAL, which employs 400 staff, had lost DKR130 million (US$18.9
million) in 2001 and DKR27 million in 2000, according to Maersk.
The carrier had only been marginally profitable at best.

A spokesman for MAL said a management buyout is an option.

Per Brinch, head of information at Maersk Air, told the daily:
"The activities in the English company provide no synergy-effects
with the rest of the Maersk Air group," adding that the sell-off
would have no effect on the other activities in the group.

Maersk Air Ltd is part of the aviation division of the Danish
based A.P. Moller Group. Although part of the Maersk Aviation
Group, Maersk Air Ltd has its origins in the West Midlands and is
incorporated as a U.K. based company.

It flies a number of Boeing 737-500 aircraft in the colors of
British Airways. Its homebase is Birmingham from where the
airline flies to a number of European destinations.

CONTACT:  MAERSK AIR LTD
          Coventry Road, Birmingham
          B26 3NG, UK
          Phone: +44 121 743 9090
          Fax: +44 121 604 9050
          E-mail: headoffice@maersk-air.ltd.uk


          MAERSK AIR A/S
          Copenhagen Airport South
          2791 Dragor, Denmark
          Phone: +45 3231 4444
          Fax: +45 3231 4490
          E-mail: info@maersk-air.dk


RDL GROUP: Appoints Joint Administrators, Suspends Trading
----------------------------------------------------------
Further to the announcement of 28 January 2003, RDL announces
that the negotiations between RDL and the vendors of M3, a
company that RDL acquired in August 2000, have broken down. In
addition, RDL has received notice of two legal claims against RDL
that it is unable to meet.

As a result, RDL announces that today it has been granted an
administration order by the high court. Shay Bannon and Dermot
Coakley of BDO Stoy Hayward have been appointed as joint
administrators of RDL.

Accordingly, RDL has requested that its shares be suspended from
trading on AIM.

                     *****

The provider of IT software consultants has a market
capitalization of GBP10.3 million as of 2001.

CONTACT:  RDL GROUP PLC
          RDL House
          Chertsey Road
          Woking, Surrey
          GU21 5AD
          United Kingdom
          Phone: (01483) 888 999
          Fax: (01483) 888 998
          E-mail: enquiries@rdlplc.co.uk


ROYAL & SUNALLIANCE: Sells Tyndall Investment Management
--------------------------------------------------------
Royal & SunAlliance on Thursday announced that it has agreed to
sell Tyndall Investment Management (Australia) Limited to James
Fielding Holdings Limited for a consideration of around GBP10
million (AU$28 million), payable in cash. At completion the net
assets of Tyndall Investment Management (Australia Limited) are
expected to be in the region of GBP2 million (AU$5 million).

The sale, which is part of Royal & SunAlliance's previously
announced strategy to divest non-core businesses, is expected to
complete in late February 2003.

Tyndall Investment Management (Australia) Limited provides
investment management services in Australia including acting as a
manager of an Australian listed property trust.

Royal & SunAlliance announced in November 2002 its intention to
IPO operations in Australia and New Zealand, which together
represent the majority of its presence in Asia Pacific.

                      *****
In December, Moody's Investors Service changed its outlook on the
A2 insurance financial strength rating of Royal & Sun Alliance
Lenders Mortgage Insurance Limited from review for possible
downgrade to uncertain.

The action is due to the impeding Initial Public Offering of the
Royal & Sun Alliance group's Asia-Pacific operation, which will
include RSA LMI.

Moody's said the review will be mainly influenced by the new
entity's future business strategy and financial profile.

The success of the offering is understood to greatly help boost
the finances of the London-based parent, Royal & Sun Alliance
Group, which is currently experiencing significant financial and
operational difficulties in several of its businesses.

The IPO is expected complete by the second quarter of 2003.

Moody's predicts that the most likely near-term scenario is for
the RSA Asia-Pacific group to be successfully spun off via the
planned IPO. The rating agency, however, does not rule out an
outright sale of the firm to another insurance group.

The success of the IPO as planned is predicted to potentially
improve RSA Insurance Australia Limited's access to capital and
strengthen its ability to support RSA LMI. It will also
positively influence rating.

Royal & Sun Alliance Insurance Group Plc owns RSA LMI through its
subsidiary, Royal & Sun Alliance Australia Holdings Limited.


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

        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, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2754.

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

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

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


                  * * * End of Transmission * * *