/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010123.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, January 23, 2001, Vol. 2, No. 16 Headlines B E L G I U M LERNOUT & HAUSPIE: Court Declines Firm's Extension Request SABENA AIRLINES: Rescue Deal Outlined C Z E C H R E P U B L I C MASOKOMBINAT KLATOVY: Investors Mull Purchase of Meat Producer G E R M A N Y EM.TV: Investment Group Considers EMTV Bid EM.TV: Kirch Declines to Comment on Bid for Formula One Share ADAM OPEL: Chair Resigns as Opel Reports Losses I R E L A N D EIRCOM: Multimedia Unit may Lose IR?50 Million N E T H E R L A N D S LETSBUYIT.COM: Court Postpones Bankruptcy Judgment P O L A N D TORY WYSCIGOW: Management Mulls Possible Receivership S W I T Z E R L A N D ANDRE & CIE: Trading Firm to Cut Workforce by Year-end U N I T E D K I N G D O M A F JAMESON: Liquidation Proceedings CORUS: Steel Giant to Slash 6,000 from Workforce DC COOK: Car Retailer Goes into Receivership DONSIDE PAPER: Foreign Firm may Buy Donside Paper EBOP LTD: Liquidation Proceedings EURODIGITAL COMMUNICATIONS: Liquidation Proceedings HUNTINGDON LIFE: Gov't Confident Loan Talks Will Succeed HUNTINGDON LIFE: Animal Cruelty Group Targets Refinancing Deal SCOTIA HOLDINGS: Ready to Face Drug Regulator LOOK LIVELY: Liquidation Proceedings TECHNLINE RESOURCES: Liquidation Proceedings TUSKAR RESOURCES: Oil Exploration Company to Wind Up Business VAUXHALL: Workers Protest Plant Closure ============= B E L G I U M ============= LERNOUT & HAUSPIE: Court Declines Firm's Extension Request ----------------------------------------------------------- A Belgian court has denied troubled software firm Lernout & Hauspie Speech Products NV's request to extend a March 1 deadline for its extraordinary shareholders' meeting since it was not acceptable on legal technical grounds, Dow Jones reported on Friday. Lernout had wanted to extend the deadline because it said it wouldn't be able to organize the meeting by the March 1 deadline set by the Ieper commercial court. SABENA AIRLINES: Rescue Deal Outlined ------------------------------------- The Belgian government and SAirGroup have tentatively agreed to inject E250 ($234 million) of new capital into Sabena as part of its E750 million rescue package, the Financial Times reported on Sunday. Sabena hoped to finalize the rescue package yesterday, but Sabena's trade unions opposed the plan because they believe that the shareholders are not putting up enough new money to guarantee the airline's long-term survival. The Belgian government, Sabena's majority shareholder, announced on Saturday that it had agreed to invest E100 million into Sabena. SAirGroup, which owns 49 percent of Sabena, has agreed to invest E150 million and to use its best efforts to cover Sabena's residual cash needs. The cash injection is essential to the E750 million recapitalization plan for Sabena. Some E350 million is expected to come from a cost-cutting program known as the Blue Sky plan, which was announced last October, the Times added. The cost cuts are designed to come from closing heavy loss-making routes to Johannesburg and Newark and cutting up to 500 staff. The source of the remaining E150 million of the rescue package has still to be decided. =========================== C Z E C H R E P U B L I C ============================ MASOKOMBINAT KLATOVY: Investors Mull Purchase of Meat Producer --------------------------------------------------------------- According to Luda Sabatova, several investors have announced an interest to purchase the bankrupt assets of Masokombinat Klatovy, the Hospodarske Noviny & World Reporter said on Thursday. AGF Trading of the Agrofert group has already expressed an interest in the meat producer. Sabatova added that the sale of the company could not be done without permission from the Prague High Court, to which the owner of the company has applied against the calling of tender. The meat producer's turnover reached Kcs 24 million in November and Kcs 35 million in December. ============= G E R M A N Y ============= EM.TV: Investment Group Considers EMTV Bid ------------------------------------------- A group that includes a unit of Deutsche Bank is considering a bid for German media group EM.TV, countering a possible offer from privately owned Kirch Gruppe, Saturday's Financial Times reported. Citing unnamed sources, the Times said that the proposed deal would involve Tele Munchen Group taking a substantial stake in EM.TV. Deutsche's Morgan Grenfell Private Equity and Hellman & Friedman of the United States provided the cash for EM.TV's 50 percent stake in the SLEC foundation, which owns media rights to Formula One motor racing events. EM.TV: Kirch Declines to Comment on Bid for Formula One Share -------------------------------------------------------------- Media group Kirch Gruppe AG on Friday declined to comment on rival bids for cash-strapped EM.TV & Merchandising AG's stake in the Formula One racing circuit, Dow Jones reports. On December, Kirch signed a memorandum of understanding with EM.TV that would give Kirch about half of EM.TV's 50 percent of the racing circuit, as well as control of a minority stake in EM.TV in exchange for $550 million in cash and juvenile programming rights. The agreement also bars EM.TV from negotiating with anyone but Kirch until the end of January. Meanwhile, Financial Times Deutschland reported that an international investment group was close to an agreement with Formula One head Bernie Ecclestone but that Kirch Deputy Chairman Dieter Hahn had also met Ecclestone in an attempt to convince him of the benefits of a partnership with Kirch. ADAM OPEL: Chair Resigns as Opel Reports Losses ------------------------------------------------ Chairman Robert Hendry of automaker Adam Opel AG resigned on Wednesday due to mounting losses of 835 million ($ 402.55 million) in 2000 at the German subsidiary of General Motors Corp., Dow Jones reported in its January 17 edition. Former BMW executive Carl-Peter Forster is expected to take Hendry's post. The Opel figures came after a $181 million loss in the third quarter forced GM to order a rash of production and job cuts in December. The fall in sales and market share was partly because Opel has been slow to roll out popular diesel vehicles and offer sales incentives in the highly competitive British auto market. To answer criticisms, Opel said it would invest more than 8.5 billion marks in its German operations by 2005, with about a quarter of that going toward product development and more efficient manufacturing this year alone. ============= I R E L A N D ============= EIRCOM: Multimedia Unit may Lose IR?50 Million ----------------------------------------------- According to Davy Stockbrokers analyst Scott Rankin, Eircom's multimedia division may suffer losses of more than IR50 million pounds this year, according to the January 20 edition of Doras. Rankin added that the valuation of the operation has fallen from IR709 million pounds last summer to IR173 million pounds. Eircom's multimedia division includes Internet service providers Indigo and Eircom.net, as well as other Internet firms. ===================== N E T H E R L A N D S ===================== LETSBUYIT.COM: Court Postpones Bankruptcy Judgment --------------------------------------------------- Letsbuyit.com won a stay of execution when a Dutch court postponed on Friday its judgment on whether to grant credit protection to the ailing Internet retailer after the company failed to meet the Tuesday night deadline to raise 4 million euros, Dow Jones reported in its January 19 edition. The court said it would reserve final judgment on the company's fate until January 25. By January 24, LetsBuyIt.com must give a guarantee to its trustee, Van Doorne, that it has four million euros in funding in a Netherlands-based bank. To date, the company has only raised just over half that amount. After the company failed to raise the funds, Germany's Neuer Markt discontinued trading Letsbuyit.com's shares. The four-million-euro guarantee would give the company at least another week to raise more funds to resurrect itself, after it filed for bankruptcy protection from creditors on December 29. =========== P O L A N D =========== TORY WYSCIGOW: Management Mulls Possible Receivership ------------------------------------------------------ The management of the horse-racing circuit Tory Wyscigow Konnych Sluzewiec (TWKS) has announced its intention to enter into receivership because it lacks funds to finance its current activities, according to Poland AM in its January 18 edition. PZU Zycie and Polish state lottery Totalizator Sportowy (TS) are among those interested in acquiring the 139-hectares TWKS. ===================== S W I T Z E R L A N D ===================== ANDRE & CIE: Trading Firm to Cut Workforce by Year-end ------------------------------------------------------- Global commodities trading company Andre & Cie said on Friday it would slash its workforce from 1,430 to 565 people by the end of 2001, according to Reuters. Andre made a loss of $209 million in 2000 after a $285 million shortfall in 1999. It said it aimed to cut its bank debts to $361 million by end 2001 from $407 million at end 2000 and $623 million in 1999. The private company, which is also involved in sugar and vegetable oil trading, finance and shipping, said it would continue its divestments in Brazil and Argentina. It also aimed for $2.9 billion in sales and to break-even on the net income this year. ========================== U N I T E D K I N G D O M ========================== A F JAMESON: Liquidation Proceedings ------------------------------------- Company Name: A F Jameson (Birmingham) Ltd Company No: 1291428 Com. Business: Sale Petrol & Oil/Motor Repairs Appointed on: 19/12/00 Type: Creditors Appointed by: Creditors and Members Liquidators: K J Watkin IPno: 5276 Firm Name: K J Watkin & Co Address: Emerald House 20 Anchor Road Aldridge City Postcode: Walsall WS9 8PH CORUS: Steel Giant to Slash 6,000 from Workforce ------------------------------------------------- Troubled steel giant Corus is set to axe 6,000 jobs, or nearly one fifth of its U.K. workforce, following a review demanded by John Moffatt, who took control of the business in December when joint chief executives John Bryant and Fokko van Duyne were fired, This Is Money reported on Sunday. Around 2,000 jobs are expected to go at Llanwern, more than 1,700 at Redcar, on Teeside, while the remaining losses will be spread across the company's U.K. operations. Corus is losing around 1 million pounds a day due to falling prices and sterling's strength. DC COOK: Car Retailer Goes into Receivership --------------------------------------------- One of the U.K.'s largest motor retailers, DC Cook, has gone into receivership after suffering cash-flow problems, Ananova reported in its January 21 edition. The group operates 27 franchises on behalf of manufacturers such as Fiat, Alfa, Citroen and Renault, as well as Web-enabled business-to-business company Motor Solutions Limited. DONSIDE PAPER: Foreign Firm may Buy Donside Paper -------------------------------------------------- Donside Paper's receiver, Iain Bennet of PricewaterhouseCoopers, has been tipped to choose a Continental buyer for the company. The most likely suitor, The Scotsman reported in its January 18 edition, would be German company Scheufflen. Further reports say that Donside will have very few serious bidders despite the 22 who initially expressed their interest. The original list is now down to a dozen and bids are expected to be in by the end of the month. According to Bennet's spokesman, Donside does not have a large number of bids as buyers will have to have access to a large amount of capital for the organization. Around six or seven of those who have notified the receiver and who are still in discussion would appear to meet the criteria. Donside, which owes 30 million pounds and is currently being run as a slimmed down business, expects to achieve the deal by late February. EBOP LTD: Liquidation Proceedings ---------------------------------- Company Name: Ebop Ltd Company No: 3758215 Com. Business: Internet News/Website Sales Co Appointed on: 19/12/00 Type: Creditors Appointed by: Creditors and Members Liquidators: F C Satow IPno: 8326 M J C Oldham 7817 Firm Name: Pannell Kerr Forster Address: New Garden House 78 Hatton Garden City Postcode: London EC1N 8JA EURODIGITAL COMMUNICATIONS: Liquidation Proceedings ---------------------------------------------------- Company Name: Eurodigital Communications Ltd Company No: 3678950 Com. Business: Telecommunications Appointed on: 19/12/00 Type: Creditors Appointed by: Creditors and Members Liquidators: David A Horner IPno: 8956 Firm Name: Harrisons Address: Tower House Fishergate City Postcode: York YO10 4UA HUNTINGDON LIFE: Gov't Confident Loan Talks Will Succeed --------------------------------------------------------- The British government is confident that Huntingdon Life Sciences Group PLC (HTD) will be able to defer repayments on a key loan, Dow Jones said on Friday. The drug-testing company is negotiating the extension of a GBP22.6 million credit with Royal Bank of Scotland PLC (RBSB). However, if the bank demands the money back, Huntingdon would face an uncertain future. Meanwhile, employees and shareholders of Huntingdon have been repeatedly threatened by animal rights activists who are angry at the company's involvement in drug testing on animals. If the activists succeed, Huntingdon may be out of business. The government has so far refused to offer any aid or compensation to Huntingdon. HUNTINGDON LIFE: Animal Cruelty Group Targets Refinancing Deal --------------------------------------------------------------- PRNewswire, January 19, 2001 U.S. animal protection advocates are launching a nation-wide campaign against shareholders and any potential investors of the controversial animal testing laboratory Huntingdon Life Sciences (HLS). HLS is in search of a last effort bid to save itself from foreclosure today when the banking facility that lent it 22.5 million English pounds two years ago will call in the loan after five months of extensions. The laboratory, a UK company with two labs in England and one located in East Millistone, New Jersey, has long been a target for animal rights activists after being exposed in a series of undercover investigations. Undercover video footage shows workers punching beagle puppies in the face, performing a necropsy on a still living monkey, and foregoing proper and lawful protocol for animal welfare and standard scientific procedures. Campaign group Stop Huntingdon Animal Cruelty has promised to step up their current efforts across North America to ensure HLS's financial horizons remain bleak. Inspired by the company's incredible share price fall, record number of clients closing their accounts with the lab, and shareholders leaving the company in droves, SHAC activists promise to be relentless against anyone still connected to the company. According to Joe Bateman of SHAC "because we've been targeting their shareholders HLS has had its share price drop as low as 25 cents, has been removed from the NYSE, and has its refinancing plans stalemated. This has been an effective tactic and one we are going to expand on." Bateman continued, "if HLS does get help with its refinancing from any American investors we promise to find out who stepped in, and we will hold them accountable for the 500 animals that will die every extra day HLS remains open." If HLS manages to temporarily avoid foreclosure on Friday, the activist group says to anticipate demonstrations across the country outside the offices and homes of shareholders, and in front of supermarkets that carry the household products that were tested on animals at HLS. Promising to be a public relations nightmare, Bateman asserts, "we will close down HLS, and any investor that tries to prevent this inevitable foreclosure will be dragged through the mud. HLS is synonymous with animal cruelty, and investors can anticipate seeing their name and company logo in the headlines attached to pictures of mutilated beagle puppies." The SHAC campaign is combining efforts with the national animal protection group In Defense of Animals, which boasts a membership of over 70,000. SCOTIA HOLDINGS: Ready to Face Drug Regulator --------------------------------------------- Biotechnology group Scotia Holdings will meet European drug regulators, EMEA, this week to decide whether to approve the company's most important product, according to The Times yesterday. The approval of Foscan, a photosensitive treatment for head and neck cancer, is critical to a rescue rights issue and capital restructuring that Scotia's chief executive, Robert Dow, hopes to push through. Some institutions, including AXA, have indicated their support for a rescue fundraising. Scotia has almost run out of money but its balance sheet is dominated by a 50 million pounds convertible bond, which makes capital restructuring difficult and on which the next interest payment is soon due. LOOK LIVELY: Liquidation Proceedings ------------------------------------- Company Name: Look Lively TV Ltd Company No: 2414653 Com. Business: TV Production Co Appointed on: 19/12/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Alan G Haden IPno: 8823 Firm Name: Haden Insolvency Address: Haden House 485 Birmingham Road City Postcode: Bromsgrove B61 0HZ TECHNLINE RESOURCES: Liquidation Proceedings --------------------------------------------- Company Name: Techline Resources Ltd Previous Name: Techline Aviation Ltd Company No: 2295655 Com. Business: Aircraft Services/Cargo Appointed on: 19/12/00 Type: Creditors Appointed by: Creditors and Members Liquidators: N H O'Reilly IPno: 8309 S B Ryman 4731 Firm Name: Rothman Pantall & Co Address: Clareville House 26-27 Oxendon Street City Postcode: London SW1Y 4EP TUSKAR RESOURCES: Oil Exploration Company to Wind Up Business ------------------------------------------------------------- After it confirmed it would have to wind up its business, Irish oil Tuskar Resources Plc saw its shares to dive on Friday, Reuters reported. The London-listed exploration firm said earlier this month it was unable to continue operations because of a dispute with its Nigerian oil field partner Cavendish Petroleum Nigeria Ltd. VAUXHALL: Workers Protest Plant Closure ---------------------------------------- On Saturday several thousand demonstrators protested the decision of Vauxhall, a unit of General Motors, to close its car plant at Luton in northern London, according to Reuters. The closure will cost 2,000 jobs in Britain's troubled car industry and could also affect its plant at Ellesmere in northwest England. Many British carmakers blame the strength of sterling as the reason for closing plants in the country. 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. Lexy Mueller, Salve M. Mordeno and Cristina Pernites Editors. Copyright 2000. 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 $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 $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *