/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010212.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 12, 2001, Vol. 2, No. 30 Headlines B E L G I U M LERNOUT & HAUSPIE: Philips Will Not Buy L&H LERNOUT & HAUSPIE: Seeks $60 Million Financing in Court SABENA AIRLINES: Airline Owners Postpone Rescue Plan G E R M A N Y BAST BAU: Construction Group Aims to Restructure in Two Months EM.TV: Kirch Talks Continue ERNST BRINKMANN: Metro Eyes Electronics Chain FREENET.DE: ISP Posts Wider Loss in 2000 LETSBUYIT.COM: German Unit Ends Insolvency MOBILCOM AG: Sees 183.2 Million Euros Net Loss in 2000 N E T H E R L A N D S NEWCONOMY NV: Sees Up to 38 Million Euros Net Loss in 2000 R U S S I A MEDIA-MOST: Chief Zamani May Face Prosecution NTV: Needs Financial Injections S W E D E N LETSBUYIT.COM: Authority Suspects E-tail Company of Insider Trading U N I T E D K I N G D O M ABBOTPLAN LTD: Notice Of Creditors Meeting CORUS: In Talks to Save Job Cuts Proposal DREAMTICKET.COM: Holiday Specialist Portal in Liquidation EQUITABLE LIFE: Rejects 1.5 Billion GE Capital Offer METROCAB: Receivers in Talks with Taximaker Buyer NWH (PROMOTIONS): Notice Of Creditors Meeting PHILTECH (UK) : Notice Of Creditors Meeting R MATTHEW: Notice Of Creditors Meeting ============= B E L G I U M ============= LERNOUT & HAUSPIE: Philips Will Not Buy L&H -------------------------------------------- After conducting a due diligence audit of Lernout & Hauspie, Dutch Philips Electronics NV President Cor Boonstra said they have no intention of buying the troubled speech recognition company, which is operating under bankruptcy court protection, the February 8 edition of Reuters reported. L&H's market capitalization fell after it announced that earnings from 1998 would have to be restated. Philips is Europe's largest maker of consumer electronics and lighting and number two in semiconductors. LERNOUT & HAUSPIE: Seeks $60 Million Financing in Court -------------------------------------------------------- Lawyers for Lernout & Hauspie Speech Products NV and two subsidiaries were in U.S. Bankruptcy Court on Wednesday seeking approval for a $60 million debtor-in-possession financing to continue operations as it endures bankruptcy proceedings in Belgium and the U.S. following an accounting scandal, Dow Jones in its February 7 edition said. "There would be no more funding for the company and the company would end up in liquidation," bankruptcy consultant Joseph D'Amico of PricewaterhouseCoopers said. "These companies cannot continue to operate without financing, none of them." A debtor-in-possession, or DIP, financing is generally high-cost credit that companies receive to stay in business while under bankruptcy protection. SABENA AIRLINES: Airline Owners Postpone Rescue Plan ----------------------------------------------------- The Belgian government and Swissair parent SAirGroup postponed on Thursday a decision on a $700 million rescue plan for their Sabena airline, according to AP Online. Sabena's co-owners will meet again on February 23 to decide the carrier's future. Sabena will continue to operate normally, while talks between the management and unions will continue until February 19 on a restructuring plan that would cut some 700 jobs. The shareholders shall decide on February 23 whether to go ahead with the infusion of new capital, or close one of Europe's oldest airlines. Sabena's profits have been hurt by the strong dollar and a rise in fuel prices, labor costs, investment in a new fleet and general overhead costs. It expects an operating loss of 391.7 million euros ($365 million) this year without restructuring, and will run out of cash by the end of the month without the rescue plan. ============= G E R M A N Y ============= BAST BAU: Construction Group Aims to Restructure in Two Months --------------------------------------------------------------- Construction group Bast Bau, which became insolvent in November 2000, aims to restructure in two to six months in order to make it attractive for potential buyers, according to Suddeutsche Zeitung's February 7 report. Under the restructuring scheme, Bast Bau's workforce will be reduced and will exclusively operate in property development in the North Rhine-Westphalia region. EM.TV: Kirch Talks Continue ---------------------------- EM.TV & Merchandising AG said on Thursday that it is continuing talks with KirchGruppe to settle a deal on a memorandum of understanding signed early December, Dow Jones reported. Under the deal, Kirch is to take control of a blocking minority of EM.TV and close to half of EM.TV's Speed Ltd., which owns half the rights to Formula One racing. This is in exchange for $550 million cash and youth programming rights. According to recent media reports, Bernie Ecclestone, who owns the remainder of the Formula One via a holding company called SLEC, has a right to veto the deal if EM.TV sells the stake to a broadcaster such as Kirch. EM.TV spokesman Michael Birnbaum said however that the memorandum of understanding has set a framework under which Kirch will gain 49 percent of Speed. As EM.TV wouldn't relinquish control of speed, Ecclestone wouldn't be able to stop the sale. ERNST BRINKMANN: Metro Eyes Electronics Chain ---------------------------------------------- Electronics retailer Ernst Brinkmann KG, which has posted heavy losses for the past two years, has become a possible acquisition target for retail giant Metro AG, according to Handelsblatt in its February 8 report. "We're looking carefully at the possibility but we're not planning a takeover right now," a Metro spokesman said. Several major companies have also expressed interest in taking over large parts of the company. Brinkmann has over 4,500 employees and 43 stores. FREENET.DE: ISP Posts Wider Loss in 2000 ----------------------------------------- Internet service provider freenet.de, majority-owned by telecoms operator MobilCom AG, on Thursday reported a pre-tax operating loss more than 35 times larger than in 1999, Reuters said. The company's 2000 pre-tax operating loss was 30.67 million marks, compared to 0.87 million in 1999. According to Chief Executive Eckhard Spoerr, the company still expects to reach profitability on a monthly basis at the turn of this year. He added that the company is also interested in setting up partnership deals with film production companies. LETSBUYIT.COM: German Unit Ends Insolvency ------------------------------------------- The preliminary application of LetsBuyIt.com Deutschland GmbH for insolvency proceedings was withdrawn at a local court on Thursday, following secured EUR52 million funding by parent company LetsBuyIt.com AG NV, according to Dow Jones. The German unit now has sufficient funds to continue its operations and plans to start fulfilling its obligations to its customers, partners and suppliers. The retailer has secured financing in excess of EUR52 million from a group of unnamed investors. In December, Letsbuyit.com filed for protection from its creditors in The Netherlands. MOBILCOM AG: Sees 183.2 Million Euros Net Loss in 2000 ------------------------------------------------------- MobilCom AG, Germany's second-largest telecommunications service provider, is expected to report a net loss of around 183.2 million euros for 2000 due to the costs of financing a third- generation mobile network, according to a February 8 Handelsblatt report. With MobilCom's hefty debt load estimated at 10 billion euros, analysts expect the loss to spread further in 2001, to as high as 620.2 million euros. The company paid 8.43 billion euros last year for third- generation mobile licenses in Germany and is also bearing the burden of high customer acquisition costs. MobilCom is 28.5 percent owned by France Telecom, which also owns European mobile operator Orange. ===================== N E T H E R L A N D S ===================== NEWCONOMY NV: Sees Up to 38 Million Euros Net Loss in 2000 ----------------------------------------------------------- Internet hothouse fund Newconomy N.V. is expected to report a net loss in 2000 of between 33 and 38 million euros, according to Reuters in its February 8 report. The company said that market volatility and investor restraint had prompted it to revalue its portfolio. Newconomy, which was listed on the Amsterdam bourse on April 20, 2000, holds investments in more than 25 Internet companies. =========== R U S S I A =========== MEDIA-MOST: Chief Zamani May Face Prosecution ---------------------------------------------- Deputy Media-Most chief Dzhavanfar Zamani may be prosecuted for failing to appear in the Media-Most inquiry, according to Itar- Tass in its February 8 edition, citing Vladimir Lyseiko of the Prosecutor-General's office. Zamani, who had ignored the prosecutor's summons several times, is said to be on business abroad. NTV: Needs Financial Injections -------------------------------- Public company Gazprom-Media said that preliminary audit results at independent NTV television company by PriceWaterhouseCoopers showed that NTV needs considerable financial injections as it continues to sustain losses from its current operations, according to Itar-Tass in its February 8 edition. NTV said it was unprepared to show PriceWaterhouseCoopers to some companies making part of the Media-Most group and having a considerable share of transactions with NTV. Gazprom-Media, who lately has expressed concern about its financial investments in NTV, requested PriceWaterhouseCoopers to carry out a comprehensive audit at the company. =========== S W E D E N =========== LETSBUYIT.COM: Authority Suspects E-tail Company of Insider Trading ----------------------------------------------------------------- The German financial supervisory authority is looking into a suspected case of insider trading within the Swedish e-tail company, Letsbuyit.com, believed to have taken place during the launch of a plan to save the company, the Dagens Nyheter & World Reporter said in its February 6 edition. The suspicion came about when Letsbuyit's share price rose from 0.15 euro to 0.34 euro even before the market learned that the Swedish company had managed to raise the SKr35 million necessary for the company's survival. Authorities will begin a more thorough investigation within the month. =========================== U N I T E D K I N G D O M =========================== ABBOTPLAN LTD: Notice Of Creditors Meeting ------------------------------------------- Company Name: Abbotplan Ltd Other name: Hillside Pharmacy IA 1986 Section: 23 Creditors Meeting Time: 11.00 am Meeting date: 09/01/01 Meeting address: Novotel Nottingham Bostock Lane Meeting City Code: Long Eaton NG10 4EP Authorised by: S Rishi Adminstrator 08/12/00 Last day for proxy: 08/01/01 Proxy address: 314 Regents Park Road London N3 2JX Firm Name: S Rishi & Co Address: 314 Regents Park Road London N3 2JX CORUS: In Talks to Save Job Cuts Proposal ------------------------------------------ Corus was in talks with the government, Welsh Assembly and unions on Thursday to avoid the company's proposed 3,000 job cuts, The Scotsman Online said. Welsh Secretary Paul Murphy and Assembly First Minister Rhodri Morgan visited Corus' Llanwern plant to coordinate a rescue package. The discussions are also aimed at coordinating employee rescue packages and assessing the effects on local communities of removing major employment lifelines. The meeting was a follow up on the government's promised program of economic regeneration for the regions hit by Corus plant closures. The steelmaker earlier announced that it would shed more than 3,000 jobs in Wales by closing plants in Ebbw Vale, Goreseinon and trimming production at Llanwern and Shotton. The job cuts at Corus, created in 1999 through the British Steel and Koninklijke Hoogovens's merger, are expected to be in excess of the 4,500 redundancies, which the company announced in the summer of 2000. The announcement came after the group said it experienced losses of 113 million pounds in April 2000, primarily due to the strong pound. DREAMTICKET.COM: Holiday Specialist Portal in Liquidation ---------------------------------------------------------- Dreamticket, an online package holiday specialist, is to go into liquidation despite beating revenue and gross profit forecasts, Guardian Unlimited said on Friday. According to chief executive Lawrence Hunt, market conditions were to blame. He added that investors just don't want to be associated with the word dot.com because it looks bad. EQUITABLE LIFE: Rejects 1.5 Billion GE Capital Offer ----------------------------------------------------- GE Capital yesterday conceded defeat in the battle to take control of Equitable Life after the troubled mutual life insurer rejected a substantially improved offer of 1.5 billion pounds, The Times said in its Friday edition. The bid would have paid 650 million pounds for Equitable's fund management, administration and sales operations. The 100 million pounds was reclaimable if Equitable's sales force did not remain with the business. A further 250 million pounds will be available based on performance targets being met with 200 million pounds more paid if a compromise aimed at capping the company's estimated 1.5 billion pounds liability to holders of guaranteed annuity rate (GAR) policies was achieved. The compromise would also have triggered the reinsurance plan. GE's original offer was worth 400 million pounds in cash, with a 800 million pounds loan and reinsurance facility. Equitable believes that GE's proposal was inferior to Halifax's agreed takeover offer. METROCAB: Receivers in Talks with Taximaker Buyer -------------------------------------------------- Metrocab is set to resume production after receivers said they were close to a deal with a consortium of local businessmen to buy the taxi-maker, This Is London said in its February 8 edition. In a statement from accountancy firm Leonard Curtis, the receivers are confident the proposed sale of the business will ensure continued operations at the Metrocab sites in Tamworth, Kilburn and Manchester. After a sharp downturn in sales of new taxis, Metrocab closed its doors just before Christmas and dismissed 170 workers. NWH (PROMOTIONS): Notice Of Creditors Meeting ---------------------------------------------- Company Name: NWH (Promotions) Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.15 am Meeting date: 09/01/01 Meeting address: St Catherines Hospice Meeting City Code: Preston Authorised by: B Halliwell Director 12/12/00 Firm Name: Tait Walker Address: Bulman House Regent Centre Gosforth NE3 3LS PHILTECH (UK) : Notice Of Creditors Meeting ------------------------------------------- Company Name: Philtech (UK) Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 09/01/01 Meeting address: Dudley Town Hall St James Road Meeting City Code: Dudley DY1 1HP Authorised by: P Bailey Director 12/12/00 Firm Name: Castle & Co Address: Priory Chambers Priory Street Dudley DY1 1HD R MATTHEW: Notice Of Creditors Meeting --------------------------------------- Company Name: R Matthew & Son (Westbury) Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 09/01/01 Meeting address: The Hilton Bath City Hotel Walcot Street Meeting City Code: Bath Authorised by: C A Weston Director 28/12/00 Last day for proxy: 08/01/01 Proxy address: 62 High Street Hanham Bristol BS15 3DR Firm Name: J W Lewis & Co Address: 62 High Street Bristol BS15 3DR 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 * * *