/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010205.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 05, 2001, Vol. 2, No. 25 Headlines B E L G I U M SABENA AIRLINES: Belgian Air Carrier Almost Broke SABENA AIRLINES: Discusses Restructuring Proposal with Unions G E R M A N Y EM.TV: Extends Talks with Kirch Beyond Deadline N E T H E R L A N D S AERPAC: Receiver Talks to Candidates in Aerpac Takeover ING BARINGS: Investment Bank Slashes 500 City Jobs VERSATEL TELECOM: Ends France, UK Operations P O L A N D DAEWOO MOTOR: To Ink Deal with New Investor in February HUTA KATOWICE: Gov't to Sell Steelmaker U N I T E D K I N G D O M BERNARD KNOPE: Notice Of Creditors Meeting CORUS GROUP: Gov't Criticizes Corus on Closings DAIRY CREST: Reveals Reorganization and Job Cuts EQUITABLE LIFE: Insurer Plans Payment to Policyholders EQUITABLE LIFE: NAPF Calls for New Board GF2 (UK): Notice Of Creditors Meeting JUST2CLICKS.COM: B2B Provider Puts Itself Up for Sale KS BIOMEDIX: Posts Loss of 1.13 Million Pounds MILLENIUM DOME: Duke's Firm Ready to Bid for Dome MILLENIUM DOME: Prime Minister to Reopen Dome Sale NOVA CASTINGS: Notice Of Creditors Meeting PARTNERS: Goes Into Receivership STOCKBROKERS LTD: Notice Of Creditors Meeting TOWN & COUNTRY: Notice Of Creditors Meeting ============= B E L G I U M ============= SABENA AIRLINES: Belgian Air Carrier Almost Broke -------------------------------------------------- Following auditors' confirmation of Sabena's significant losses, chief executive Christoph Mueller said on Thursday that the airline would run out of cash by the end of the February unless it adopts a restructuring plan. In its February 1 edition, AP Online reported that the 354 million euro ($331 million) restructuring plan, which could lead to 700 job losses, was the strict minimum the company needs to survive. The Swiss SAirGroup, which owns 49.5 percent of Sabena, and the Belgium government, which owns the rest, say they will pump 250 million euros ($234 million) into the company if unions accept the restructuring plan. Both groups will decide on February 8 whether to go ahead with the rescue or dissolve the company. SABENA AIRLINES: Discusses Restructuring Proposal with Unions -------------------------------------------------------------- The management of Sabena SA met with union officials on January 31 to discuss a restructuring and cost reduction plan that includes reducing the workforce by up to 600 employees, M2 Communications said. The union was willing to keep talking about the proposal, but would not accept direct layoffs. The unions also called for an independent audit of the airline. ============= G E R M A N Y ============= EM.TV: Extends Talks with Kirch Beyond Deadline ------------------------------------------------ Negotiations for a tie-up between media groups KirchGruppe AG and EM.TV & Merchandising AG will continue beyond the agreed deadline, Handelsblatt said in its February 1 edition. The companies will finalize the memorandum of understanding details, which was signed early December. Under the deal, Kirch is to take control of a blocking minority of EM.TV and close to half of EM.TV's 50 percent share of the Formula One racing circuit in exchange for $550 million in cash and rights to youth television programs. ===================== N E T H E R L A N D S ===================== AERPAC: Receiver Talks to Candidates in Aerpac Takeover -------------------------------------------------------- Receiver J. Daniels is still in talks with a number of takeover candidates following the declaration of Aerpac as an insolvent firm, the NRC Handelsblad said in its January 29 report. The names of the candidates were not disclosed. The plastic windmill vanes manufacturer, which had been under suspension of payment for some time, had to frequently finance in advance and could even hardly meet the increased demand for windmill vanes. ING BARINGS: Investment Bank Slashes 500 City Jobs --------------------------------------------------- Troubled investment bank ING Barings retrenched 500 city employees last week as a result of a strategic review of its global investment banking operations, according to the Birmingham Post's January 31 edition. ING also announced that it sold its US investment bank to rival ABN Amro for 188.4 million pounds. It employs 1,300 staff. About 1,000 staff remain at Barings, which Dutch-owned ING bought for 1 pound five years ago after rogue trader Nick Leeson brought the 237-year company to the brink of bankruptcy by stacking up losses of 860 million pounds on unauthorized futures trading. Meanwhile, thousands of workers at Anglo-Dutch steel-maker Corus are still waiting to learn their fate. VERSATEL TELECOM: Ends France, UK Operations --------------------------------------------- Telecom operator VersaTel Telecom International NV has decided to end its activities in France, the UK and some parts of Germany to focus on Benelux and the northwestern region of Germany. As of December 1999, the company's long-term debt was 988.74 million Euros, with total liabilities of 1.16 billion Euros. The company, involved in the operation of a high bandwidth telecommunication network, will also lay off two-thirds of its employees in former joint venture Versapoint. =========== P O L A N D =========== DAEWOO MOTOR: To Ink Deal with New Investor in February -------------------------------------------------------- South Korea's troubled carmaker Daewoo is expected to sign a deal with an investor for its Polish van-making unit Daewoo Motor Polska (DMP) on February 20, DMP spokeswoman Beata Stopyra said. She declined to say what the deal with the investor would involve. Reuters reported on February 1 that talks are underway with several possible investors, including Germany's Volkswagen. Meanwhile, the fate of Daewoo's passenger carmaker Daewoo-FSO remained undecided as creditors were bracing for a new round of talks on selling the company to General Motors. DMP, which is about to lay off 900 workers as part of its restructuring program, plans to suspend car assembly for three weeks in February due to weak demand and full inventories. HUTA KATOWICE: Gov't to Sell Steelmaker ---------------------------------------- After a decade of failed deals and missed opportunities, the Polish government is again seeking foreign investors for its steel companies, led by ailing Huta Katowice. Bids were due on Friday and the government hopes a deal could be completed by the end of this year. Huta Katowice's worsening finances could complicate the sale, following banks' refusal to finance the firm. Any deal will involve tricky multiparty discussions, where investors may be asked to shoulder part of the steelmaker's debts. Huta Katowice produces low value-added long products and employs 7,000 workers. =========================== U N I T E D K I N G D O M =========================== BERNARD KNOPE: Notice Of Creditors Meeting ------------------------------------------- Company Name: Bernard Knope & Partners Ltd IA 1986 Section: 48 Creditors Meeting Time: 12.00 pm Meeting date: 03/01/01 Meeting address: The Cedars Hotel Needham Road Meeting City Code: Stowmarket IP14 2AJ Authorised by: B Rees Joint Receiver 08/12/00 Last day for proxy: 02/01/01 Proxy address: Grant Thornton House Melton Street London NW1 2EP Firm Name: Grant Thornton Address: Grant Thornton House Melton Street London NW1 2EP CORUS GROUP: Gov't Criticizes Corus on Closings ------------------------------------------------ The government's chief press spokesman has criticized Corus Group PLC for an inadequate flow of information about its planned plant closures, according to Dow Jones on Thursday. According to Corus spokesman Michael Hitchcock, Corus had kept in close touch with the Department of Trade and Industry, the Welsh Assembly, several Members of the Parliament and Prime Minister Tony Blair last week. The privatized steelmaker is planning to close the South Wales factory and the blast furnace at the northeast of the U.K. DAIRY CREST: Reveals Reorganization and Job Cuts ------------------------------------------------- In a report dated February 1, the Guardian Unlimited said that Dairy Crest has announced a reorganization of its operations, which will result in 900 jobs cut. Furthermore, a dairy in Thornbury, south Gloucestershire, will close in November. One at Marshfield, Cardiff, will be shut in February of next year, while those at Kidlington, Oxfordshire, will close in September of next year. EQUITABLE LIFE: Insurer Plans Payment to Policyholders ------------------------------------------------------- Equitable Life is negotiating a rescue plan to offer its guaranteed annuity rate (GAR) policyholders a payment of up to 1.5 billion pounds to salvage its beleaguered with-profits fund, according to The Times' Friday report. The payment would be distributed to the 90,000 GAR policyholders as terminal bonuses to their pensions when they mature. In return, the policyholders would be required to give up their rights to the guarantees, which have shattered the company's finances. The plan would cap Equitable Life's liabilities. It would also pave the way for Halifax to invest up to 500 million pounds for Equitable's asset management business, administration systems and sales force. EQUITABLE LIFE: NAPF Calls for New Board ----------------------------------------- The National Association of Pension Funds (NAPF), a trade body that represents UK pension schemes' interests, has called for a new board of directors at the Equitable Life Assurance Society so that decisions can be made about the future of the business, Efinancials reported in its February 1 edition. NAPF has suggested a candidate for appointment to the new board who understands the specific concerns of trustees and scheme members. The pension group declined to name the candidate. The Equitable Life Assurance Society was forced to close for new business on December 8 when it failed to find a buyer to underwrite an open-ended liability estimated at 1.5 billion pounds following a House of Lords ruling. The ruling obliged Equitable to meet the expectations of customers who had bought guaranteed annuity rate policies. GF2 (UK): Notice Of Creditors Meeting --------------------------------------- Company Name: GF2 (UK) Ltd Other name: The Retreat IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 03/01/01 Meeting address: The Old Mill 9 Soar Lane Meeting City Code: Leicester LE3 5DE Authorised by: A A Kelly Director 30/11/00 Last day for proxy: 02/01/01 Proxy address: The Old Mill 9 Soar Lane Leicester LE3 5DE Firm Name: HKM Harlow Khandhia Mistry Address: The Old Mill 9 Soar Lane Leicester LE3 5DE JUST2CLICKS.COM: B2B Provider Puts Itself Up for Sale ------------------------------------------------------ Business-to-business Internet marketplace provider Just2clicks.com has put itself up for sale after losing appetite for its products, This Is London in its February 1 edition said. As part of a review, the group will dispose of three of its marketplaces for the freight, paper and granite industries in a bid to reduce its cash burn from 650,000 to 325,000 pounds a month. Just2clicks is also considering acquiring an established business and use its 40 million pounds cash pile to fund a takeover. KS BIOMEDIX: Posts Loss of 1.13 Million Pounds ----------------------------------------------- Pharmaceuticals company KS Biomedix has recorded an interim pre- tax loss of 1.13 million pounds, according to The Times in its February 2 edition. MILLENIUM DOME: Duke's Firm Ready to Bid for Dome -------------------------------------------------- Grosvenor Estates, a property company owned by the Duke of Westminster, is ready to bid for the troubled Millennium Dome with property developer Quintain Estates if current sale negotiations fall through, The Times reported on Friday. "Grosvenor and Quintain would be ready to express an interest if the current proposals for the future of the Dome were to be re- evaluated and alternative proposals were sought," the companies said in a statement. Dome chief executive Pierre-Yves Gerbeau has also said he is interested in bidding for the Dome and would want to keep it as an entertainment venue. Legacy, the government's preferred bidder, has exclusive negotiating rights and has until February 14 to finalize a deal. MILLENIUM DOME: Prime Minister to Reopen Dome Sale --------------------------------------------------- Amid growing anxiety over the preferred bidder, Legacy, Prime Minister Tony Blair is ready to let new bidders negotiate for the Millennium Dome, The Times said in its February 2 report. Property firm Grosvenor Estates is willing to make an offer if the Legacy consortium bid of 125 million pounds collapses. Grosvenor would bid with another leading developer and the Dome would remain an integral feature of their plans. Ministry of Sound nightclub owners Pierre-Yves Gerbeau and James Palumbo have also formed a consortium to turn the Dome into an international concert center. Senior government sources said that the Prime Minister wants to conclude the Legacy bid by the end of February when the 50 million pounds auction of the Dome contents is scheduled. NOVA CASTINGS: Notice Of Creditors Meeting ------------------------------------------- Company Name: Nova Castings Ltd IA 1986 Section: 48 Creditors Meeting Time: 11.00 am Meeting date: 03/01/01 Meeting address: Beaufort House 94-96 Newhall Street Meeting City Code: Birmingham B3 1PB Authorised by: R G Butcher Joint Administrative Receiver 18/12/00 Last day for proxy: 02/01/01 Proxy address: Beaufort House 94-96 Newhall Street Birmingham B3 1PB Firm Name: Moore Stephens Booth White Address: Beaufort House 94-96 Newhall Street Birmingham B3 1PB PARTNERS: Goes Into Receivership --------------------------------- Partners, which has gone into receivership, is threatening 1,000 jobs around the country, the Sunday Times said in its January 28 edition. Although KPMG has announced the closure of 20 of the 100 shops, the administrative receiver still hopes to keep the business trading. STOCKBROKERS LTD: Notice Of Creditors Meeting ---------------------------------------------- Company Name: Stockbrokers Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.00 am Meeting date: 03/01/01 Meeting address: 54 Cowgate Kirkintilloch Meeting City Code: Glasgow G66 1HN Authorised by: S Mobarik Director 20/12/00 Firm Name: Mackie Associates Address: Central Chambers 109 Hope Street Glasgow G2 6LL TOWN & COUNTRY: Notice Of Creditors Meeting -------------------------------------------- Company Name: Town & Country Insurance Serv Ltd IA 1986 Section: 48 Creditors Meeting Time: 12.00 pm Meeting date: 03/01/01 Meeting address: The Cedars Hotel Needham Road Meeting City Code: Stowmarket IP14 2AJ Authorised by: B Rees Joint Receiver 08/12/00 Last day for proxy: 02/01/01 Proxy address: Grant Thornton House Melton Street London NW1 2EP Firm Name: Grant Thornton Address: Grant Thornton House Melton Street London NW1 2EP 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 2001. 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 * * *