/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010207.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 Wednesday, February 07, 2001, Vol. 2, No. 27 Headlines B E L G I U M LERNOUT & HAUSPIE: Executives Sell Stocks for $13 Million LERNOUT & HAUSPIE: Shareholders Seeks Damages SABENA AIRLINES: Management and Unions Agree to Tentative Deal B U L G A R I A BALKAN AIRLINE: Israeli-owned Airline Seeks Strategic Partner G E R M A N Y ADVANCED MEDIEN: Losses Prompt Media Company to Seek Buyer AIR AFRIQUE: Jet Seized for Outstanding Payments EM.TV: Refuses to Pay Damages ERNST BRINKMANN: Trading Company is Takeover Target PIXELPARK AG: Loss Widens to 5.4 Million Euros in Fourth Quarter I T A L Y ALITALIA LINEE: Air France Awaits Alitalia Partnership ALITALIA LINEE: Government Fails to Name Airline CEO FREEDOMLAND-ITN: Receives Proposals from 11 Potential Bidders TELECOM ITALIA: Group Debt Seen at 20 Billion Euros P O L A N D DAEWOO-FSO: Cost-cutting Program Prompts Job Cuts EC BEDZIN: Suffers $2.24 Million Net Loss in 2000 U N I T E D K I N G D O M ADVANCED BUSINESS: Notice Of Creditors Meeting BERKOFF ASSOCIATES: Notice Of Creditors Meeting BUY.COM UK: John Lewis to Acquire Online Retailer DRAGON COAL: Notice Of Creditors Meeting GENERATOR WORLDWIDE: Notice Of Creditors Meeting HANCOX 2000: Notice Of Creditors Meeting MCB EXPRESS LTD: Notice Of Creditors Meeting ============= B E L G I U M ============= LERNOUT & HAUSPIE: Executives Sell Stocks for $13 Million ---------------------------------------------------------- Lernout & Hauspie Speech Products is being investigated for alleged insider stock sales, The Wall Street Journal reports. The February 5 report says three executives from the speech- recognition software company were said to have sold stocks for $13 million. When the U.S. Securities and Exchange Commission began inquiring about Lernout & Hauspie's impromptu stockpile of Asian profits, the company's share price plummeted, with investors losing billions. LERNOUT & HAUSPIE: Shareholders Seeks Damages ---------------------------------------------- Consultancy group Deminor and Belgian consumer protection group Test Achats have joined forces on behalf of around 4,000 Lernout & Hauspie shareholders in filing a complaint to the magistrate's court in Ypres on Friday, according to AFX's February 5 edition. The new complaint, which includes an action for damages, alleges forgery and false accounts, embezzlement, misleading representations at public meetings, violation of accounting rules, insider trading and stock market manipulation. Lernout & Hauspie has an ongoing criminal investigation by the Ypres public prosecutor into financial irregularities in the company's financial statements. SABENA AIRLINES: Management and Unions Agree to Tentative Deal -------------------------------------------------------------- In a report dated February 5, Reuters said that the unions and management of Sabena Airlines have resolved to avoid any forced redundancies at the ailing national airline. According to Christian Democrat union spokeswoman Inge Vervotte, Sabena has agreed to find ways of relocating workers and would offer early retirement to people over 52. The Belgian government, which has a 51 percent stake in Sabena, and airline holding company SairGroup with 49 percent, last month agreed to a 10 billion Belgian franc recapitalization as part of a rescue plan for the beleaguered airline. The two shareholders will meet tomorrow to decide whether to continue to pursue the company's activities or dissolve the airline. =============== B U L G A R I A =============== BALKAN AIRLINE: Israeli-owned Airline Seeks Strategic Partner -------------------------------------------------------------- Balkan Airline, owned by Israel's Zeevi Group, is seeking a strategic partner from the aviation sector, Reuters said in its February 1 edition. According to president and chief executive Zvi Frank, the owners are in the process of negotiating a very big loan with various banks, but he did not elaborate. The Zeevi Group, which acquired a 75 percent stake in Balkan in June 1999 for $150,000, committed to pay off $30 million of the airline's debt over a period of 10 years. The privatization agency was not available to clarify whether Zeevi Group would be obligated to take on debt above the agreed $30 million. Since the privatization, Balkan has had no fresh debts, but Frank said the airline may have owed creditors $120 million before the privatization. ============= G E R M A N Y ============= ADVANCED MEDIEN: Losses Prompt Media Company to Seek Buyer ----------------------------------------------------------- Media company Advanced Medien is in talks to find a buyer after racking up losses in 2000 that might endanger its survival, FT MarketWatch said in its February 2 edition. According to chief executive Christophe Montague, they are in talks with banks and partners about a solution. Advanced Medien's cash position was complicated after it generated losses of at least 10 million marks last year, said to have been caused by problems of sales for television licensing in the German-speaking market. The stock plunged 36 percent to 1.76 euros. The stock has lost two-thirds of its value in the last six months. AIR AFRIQUE: Jet Seized for Outstanding Payments ------------------------------------------------- An Airbus jet operated by Air Afrique was seized on Saturday when it landed in Paris because of outstanding payments, Agence France-Presse in its February 3 report said. According to German Operating Aircraft Leasing (GOAL), a Lufthansa subsidiary, Air Afrique since August of last year had failed to pay more than one million francs (740,000 dollars) in outstanding dues. Air Afrique leased the plane in August 1999 for three years. EM.TV: Refuses to Pay Damages ------------------------------ EM.TV & Merchandising is likely to go to court rather than agree to pay some 900 shareholders, who have been in touch with legal office Tilp und Kaelberer for damages, Kagan.com said in its February 5 edition. On December 1, EM.TV said that its 2000 earnings before interest and taxes would only be DM50 million (euro 25.6/$24 million). According to Tilp, EM.TV would not agree to an out-of-court settlement because the number of plaintiffs and size of demands have not been indicated. ERNST BRINKMANN: Trading Company is Takeover Target ---------------------------------------------------- With a number of potential buyers coming into light for the trading company, Ernst Brinkmann KG's management and staff are hoping to carry out a successful reconstruction project, according to Die Welt & World Reporter's February 3 edition. On the back of shareholders' refusal to share the costs of a capital increase, Brinkmann was forced to launch insolvency proceedings last week. Department store and mail order group Karstadt Quelle AG and UK group Kingfisher PLC are mentioned as potential buyers. PIXELPARK AG: Loss Widens to 5.4 Million Euros in Fourth Quarter ----------------------------------------------------------------- Pixelpark AG said its loss in the final quarter of 2000 widened nearly fourfold as it spent to integrate recent acquisitions, according to the FT MarketWatch's February 2 report. Its loss before interest, tax, depreciation and amortization fell to 5.4 million euros in the quarter ended December 31. Pixelpark has initiated a cost-cutting program to concentrate on profitability. The company's long-term debt as of June 1999 was 1.14 million euros and total liabilities were 22.71 million euros. ========= I T A L Y ========= ALITALIA LINEE: Air France Awaits Alitalia Partnership ------------------------------------------------------- Italian Prime Minister Giuliano Amato met Transport Minister Pierluigi Bersani and Treasury Minister Vincenzo Visco on Monday to discuss plans for an international partnership of Alitalia, Reuters said. Air France has repeatedly expressed its interest in a commercial alliance with Alitalia, where such deal could ultimately lead to a deeper link involving capital ties. The French airline is reportedly waiting for Alitalia to resolve its internal issues. "We are ready to restart talks with Alitalia with a view to reaching a deal as soon as possible," Air France Chairman Jean- Cyril Spinetta told reporters in Paris. "The technical discussions are relatively advanced. Things could move quickly if there was a willingness on both sides." The loss-making airline, 53-percent owned by the state, also saw a planned alliance with KLM Royal Dutch Airlines and Swissair. It has also said it is interested in forging alliances with American partners. ALITALIA LINEE: Government Fails to Name Airline CEO ----------------------------------------------------- The Italian government failed to name a new CEO for Alitalia Linee Aeree Italiane SPA on Monday, following Domenico Cempella's decision to step down on February 2 as chief executive officer, Reuters said. A decision is expected before an Alitalia board meeting slated today. Industrial sources have touted Pietro Ciucci, director general of state holding IRI and an Alitalia board member, as a likely replacement. The airline company provides such services as transportation of passengers, freight and mail, air traffic control, charter flights, aircraft maintenance, data processing relating to air transport services, tourism and financial services relating to air transport, flying fields and related services. FREEDOMLAND-ITN: Receives Proposals from 11 Potential Bidders -------------------------------------------------------------- Italian Internet television company Freedomland has received from 11 potential bidders proposals of interest to buy all or part of its founder's controlling stake, according to a Reuters report on Monday. Names of the bidders were not disclosed. Freedomland founder Virgilio Degiovanni, who was named last year in a police investigation for false accounting charges, has agreed to sell his 65 percent stake in the company. In 1999, earnings before extraordinary items at Freedomland were negative 3.13 million euros. The company has reported losses and paid no dividends during the last 12 months. TELECOM ITALIA: Group Debt Seen at 20 Billion Euros ---------------------------------------------------- Telecom Italia's group debt at the end of 2001 is expected to be 20 billion euros, Reuters reported on Monday. CFO Massimo Brunelli said the figure is compared to the 19.1 billion at end-2000. =========== P O L A N D =========== DAEWOO-FSO: Cost-cutting Program Prompts Job Cuts -------------------------------------------------- Daewoo-FSO, a Polish unit of South Korea's bankrupt car maker Daewoo Motors, is considering a lay off of nearly a quarter of its 5,400 workforce as part of a cost-cutting program, Reuters reported on Monday. According to the unit's chief, Janusz Wozniak, the decision about the dismissals will be taken during the company's shareholders meeting on February 23. Daewoo Motor earlier decided to cease production at its main plant in Korea for more than three weeks to lower inventory levels. Meanwhile, Daewoo-FSO's fate remains undecided as its creditors were bracing for a new round of talks to sell the whole company to General Motors. However, the Polish government and Daewoo-FSO managers want the firm to be sold to another investor because GM already owns a car factory in Poland. EC BEDZIN: Suffers $2.24 Million Net Loss in 2000 -------------------------------------------------- Based on a preliminary result released to the Central Statistical Office, power and heating plant EC Bedzin suffered a net loss of nearly nine million zlotys ($2.24 million) in 2000. Reuters said Monday that many Polish companies in the Warsaw Stock Exchange listing have already released preliminary quarterly results. =========================== U N I T E D K I N G D O M =========================== ADVANCED BUSINESS: Notice Of Creditors Meeting ----------------------------------------------- Company Name: Advanced Business Networks Global Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 05/01/01 Meeting address: 2 Bloomsbury Street Meeting City Code: London WC1B 3ST Authorised by: L Hartwell Director 12/12/00 Last day for proxy: 04/01/01 Proxy address: 2 Bloomsbury Street London WC1B 3ST Firm Name: Baker Tilly Address: 2 Bloomsbury Street London WC1B 3ST BERKOFF ASSOCIATES: Notice Of Creditors Meeting ------------------------------------------------ Company Name: Berkoff Associates Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 05/01/01 Meeting address: Langley House Park Road East Finchley Meeting City Code: London N2 8EX Authorised by: D Berkoff Director 21/12/00 Last day for proxy: 04/01/01 Proxy address: Langley House Park Road East Finchley London N2 8EX Firm Name: Langley & Partners Address: Langley House Park Road East Finchley London N2 8EX BUY.COM UK: John Lewis to Acquire Online Retailer -------------------------------------------------- Britain's operator of department stores and supermarkets, John Lewis Partnerships, is negotiating to acquire the U.K. operations of Buy.com, an online retailer based in California, The Wall Street Journal said in its February 5 edition. A purchase announcement can be made as early as this week if terms can be worked out in one of its six annual staff council meetings. DRAGON COAL: Notice Of Creditors Meeting ----------------------------------------- Company Name: Dragon Coal Corporation Ltd IA 1986 Section: 98 Creditors Meeting Time: 12.00 pm Meeting date: 05/01/01 Meeting address: Swansea Marriott Hotel Maritime Quarter Meeting City Code: Swansea SA1 3SS Authorised by: A D Clark Director 13/12/00 Last day for proxy: 04/01/01 Proxy address: Highfield Court Tollgate Chandlers Ford SO53 3TZ Firm Name: BKL Weeks Green Address: Highfield Court Tollgate Chandlers Ford SO53 3TZ GENERATOR WORLDWIDE: Notice Of Creditors Meeting ------------------------------------------------- Company Name: Generator Worldwide Services Plc IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 05/01/01 Meeting address: 30 Park Cross Street Meeting City Code: Leeds LS1 2QH Authorised by: J P Watkinson Director Last day for proxy: 04/01/01 Proxy address: 30 Park Cross Street Leeds LS1 2QH Firm Name: Begbies Traynor Address: 30 Park Cross Street Leeds LS1 2QH HANCOX 2000: Notice Of Creditors Meeting ----------------------------------------- Company Name: Hancox 2000 Ltd IA 1986 Section: 98 Creditors Meeting Time: 12.00 pm Meeting date: 05/01/01 Meeting address: Newfields Furnace Lane Meeting City Code: Halesowen B63 3SR Authorised by: K R Hancox Director 11/12/00 Last day for proxy: 04/01/01 Proxy address: 231 Stourbridge Road Kidderminster DY10 2XB Liquidators: Kenneth J Wright Firm Name: Wright Associates Address: 231 Stourbridge Road Kidderminster DY10 2XB MCB EXPRESS LTD: Notice Of Creditors Meeting --------------------------------------------- Company Name: MCB Express Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 05/01/01 Meeting address: 90 St Faiths Lane Meeting City Code: Norwich NR1 1NE Authorised by: M Collins Director 14/12/00 Last day for proxy: 04/01/01 Proxy address: 90 St Faiths Lane Norwich NR1 1NE Firm Name: McTear Williams & Wood Address: 90 St Faiths Lane Norwich NR1 1NE 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 * * *