/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010221.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 21, 2001, Vol. 2, No. 36 Headlines B E L G I U M SABENA SA: Management and Unions Seek Cost-Cutting Measures SABENA AIRLINES: Shareholders Support $228.8 Million Injection SPECTOR PHOTO: Mercator and Vlerick to Support Photo Firm C Z E C H R E P U B L I C ZELEZARNY CHOMUTOV: Foreign Investors Interested in Steel Firm F R A N C E AIR LIBERTE: French Airlines may not Survive INTERCALL SA: Tiscali and BBL Make Offers for Intercall Rescue G E R M A N Y EM.TV: Board Members Reveal Resignations EM.TV: Ex-Chair Confirms Secret Contract With Kirch GENSET: Sees Widened Loss in 2000 RENTACO AG: Files for Insolvency in Berlin G R E E C E OLYMPIC AIRWAYS: Government Shortlists Four Bidders I R E L A N D EIRCOM PLC: Plans Major Cost Cuts N E T H E R L A N D S BAAN COMPANY: Investors in Options Sue Amsterdam Exchange YOOZ: Gets Fl 2.5 Million Loan from Financier N O R W A Y TELENOR ASA: Posts Drop in Profit After Privatization U N I T E D K I N G D O M AILSA (UK): Notice Of Creditors Meeting AJL SERVICES: Notice Of Creditors Meeting BOOTS PLC: Denies Sale Rumors of Healthcare and Halfords BOOTS PLC: Pharmacy Chain to Present Restructuring Plan BRITISH TELECOM: Considers Demerger of BT Wireless CALLCOTT ANDERSON: Notice Of Creditors Meeting CANTAB PHARMACEUTICAL: Posts Pre-Tax Loss of 5.14 Million Pounds CHEMI PETRO: Notice Of Creditors Meeting EGG BANK: Posts 155.3 Million Pounds Pre-tax Loss EQUITABLE LIFE: FSA Investigates Pension Sales EUROTUNNEL PLC: Charles Mackay Replaces Chairman Ponsolle FUTURE NETWORKS: Publisher Reduces Operations GILL AVIATION: Notice Of Creditors Meeting KENWOOD APPLIANCES: Italian Firm Acquires Kenwood for 46 Million KINGFISHER PLC: Considers Wegert Sale MILCHESTER CORPORATION: Notice Of Creditors Meeting MILLENIUM DOME: Nomura Backs Gerbeau in Dome Bid MILLENNIUM DOME: Prescott Takes Charge of Dome Bid RAILTRACK GROUP: Denies Reports of Bankruptcy XENOVA GROUP: Posts 9.99 Million Pounds Pre-tax Loss ============= B E L G I U M ============= SABENA SA: Management and Unions Seek Cost-Cutting Measures ------------------------------------------------------------ The management and labor unions of the Belgian national carrier Sabena SA spent the weekend hammering out a deal on cost-cutting measures, The Wall Street Journal reported in its Monday edition. Sabena's management is demanding 52 million euros ($47.5 million) from labor unions as part of a 750 million euro restructuring plan for the ailing airline. Otherwise, it will run out of money at the end of this month. Management also said that it needs to cut 700 jobs from a staff of roughly 12,000. The airline's two shareholders, SAirGroup and the Belgian state, have pledged to inject 250 million euros in cash in the airline if the rest of the restructuring package is put in place. SAirGroup will, however, pull out of its investment if unions reject the plan. SABENA AIRLINES: Shareholders Support $228.8 Million Injection --------------------------------------------------------------- During a board meeting Monday, Sabena SA's shareholders have agreed to a 250 million euro ($228.8 million) capital injection for the troubled national carrier, according to Dow Jones on Monday. Under the deal, the Belgian state will contribute 100 million euros while SAirgroup will contribute 150 million euros. The successful discussion with unions on a restructuring plan included 700 employee layoffs and cutbacks on non-profitable air routes. The agreement will be formalized at a shareholders meeting on February 23. Shareholders say the cash injection is the first step in Sabena's recovery plan. It will allow the company to continue as a going concern, secure its activities, serve its customers and meet its financial obligations. SPECTOR PHOTO: Mercator and Vlerick to Support Photo Firm ---------------------------------------------------------- Insurer Mercator-Noordstar and entrepreneur Philippe Vlerick will take part in the issue of a few hundred million Belgian francs for the upcoming capital increase of photo-finishing company Spector Photo Group SA, De Standaard & World Reporter said in its February 14 report. The capital increase will enable Spector to sell off its ailing German subsidiary Porst and enter an extraordinary cost of BFr1.9 billion in the books. As of December 1999, Spector has a long-term debt of 49.61 million euros and total liabilities of 393.86 million euros. =========================== C Z E C H R E P U B L I C ============================ ZELEZARNY CHOMUTOV: Foreign Investors Interested in Steel Firm --------------------------------------------------------------- Austrian steel makers Boehler and Penk and Schmolz & Dickenbach of Germany are interested in the purchase of troubled steel company Zelezarny Chomutov, the Czech News Agency said on February 14. The Austrian firms only want some of Zelezarny Chomutov's plants, while the German investor would like to buy the whole firm. According to Chomutov mayor Alexandr Novak, the sale is the only way to ensure the firm's survival. Its 684 employees have been receiving delayed wages since last April. =========== F R A N C E =========== AIR LIBERTE: French Airlines may not Survive --------------------------------------------- According to SAirGroup, the future of the group's French airline operations could not be guaranteed following losses of over 2.5 billion French francs ($348.6 million) in 2000, the Financial Times reported on Monday. Chief Executive Marc Rochet, who was head of Air Liberte until British Airways sold the unprofitable carrier to SAirGroup, said that a full financial audit of AOM, Air Liberte and Air Littoral, the three airlines pooled under SAirGroup's umbrella, would be published by March 15. SairGroup is renegotiating its 49.5 percent stake in Belgian airline Sabena. INTERCALL SA: Tiscali and BBL Make Offers for Intercall Rescue --------------------------------------------------------------- Intercall SA, which designs and distributes prepaid telephone cards, will hold an extraordinary shareholders meeting soon to consider rescue bids for the financially troubled telecom services provider, Reuters said on Monday. According to Intercall, the Nanterre court has accepted takeover offers from French Internet service provider Liberty Surf, recently bought by Italian firm Tiscali, and Banque Bruxelles Lambert's Global Millennium Fund. As of December 1999, Intercall has a long-term debt of 8.04 million euros and total liabilities of 31.70 million euros. ============= G E R M A N Y ============= EM.TV: Board Members Reveal Resignations ----------------------------------------- Two of EM.TV & Merchandising AG's four-member management board have submitted their resignations, according to the Financial Times on Monday. Hans-Peter Vriens, head of EM.TV's television sales and marketing, will be leaving the group shortly together with programming chief and former Kirch Gruppe employee Sylvia Rothblum. Board members, as well as the chairman of the supervisory board, have opposed the media group's rescue by rival Kirch Gruppe last Wednesday. Kirch is offering $550 million and its share in a children's program joint venture in exchange for half of EM.TV's 50 percent stake in SLEC, the foundation that manages the rights to Formula One events, and a 25 percent voting right in the group. It will also fund an option held by EM.TV that allows it to buy another 25 percent of SLEC before February 28. EM.TV: Ex-Chair Confirms Secret Contract With Kirch ---------------------------------------------------- Former EM.TV & Merchandising AG chairman Nickolaus Becker has confirmed the existence of a previously unknown contract with Kirch Group, the group now preparing to take control of the troubled media company, The Wall Street Journal reported on Monday. Becker had opposed the deal. EM.TV fell deep into debt last year after buying Muppets characters creator Jim Henson Co. and half of the Formula One auto-racing circuit. Kirch agreed to pay $550 million (601.8 million euros) for 25 percent of EM.TV and 24.5 percent of Formula One, but still has to secure financing of about $1.7 billion to cover its partner's debts and obligations to the motor-racing series. According to Becker, a contract dated March 2000 and signed by EM.TV Chief Executive Thomas Haffa called for EM.TV to pay Kirch 95 million marks ($44.4 million or 48.6 million euros) for the limited and long-deferred rights to children's television programs. It was not clear if Haffa himself would be responsible for paying the contract. EM.TV's supervisory board and the management board were not aware of the contract until Kirch mentioned it in a January letter to EM.TV when their alliance talks halted. GENSET: Sees Widened Loss in 2000 ---------------------------------- Analysts expect a full-year net loss of 32.3 million euros for biotech firm Genset compared to a 22.1 million loss last year, according to Reuters on Monday. The widening loss is related to costs involved in its research and development activities. Analysts have added that loss may grow further before cost savings kick in 2002. Genset does not expect to be profitable until it closes a large- scale partnership agreement to develop its anti-obesity drug Famoxin. As of December 1999, the company had a long-term debt of 4.93 million Euro and total liabilities of 25.86 million Euro. RENTACO AG: Files for Insolvency in Berlin ------------------------------------------- Project development and building company Rentaco AG filed for insolvency at a Berlin court last week, the World Reporter said in its February 15 edition. The company said all retirement homes would continue operating despite the insolvency and stressed that the aim of the insolvency proceedings was the continuation of business. =========== G R E E C E =========== OLYMPIC AIRWAYS: Government Shortlists Four Bidders ---------------------------------------------------- The government has short listed four bidders for a majority stake in ailing Olympic Airways, due for privatization this year, the Financial Times said in its Monday edition. The bidders are a consortium led by partly privatized Cyprus Airways, small private Greek carrier Axon Airlines, shipping group Restis and Australian venture capital group Integrated Airline Solutions. Analysts said the government reversed an earlier decision to restructure the airline ahead of the sale. ============= I R E L A N D ============= EIRCOM PLC: Plans Major Cost Cuts ---------------------------------- Telecom operator Eircom Plc is planning a restructuring that involves major cost cuts in a move to rebuff eIsland's bid for the company, Ireland's Sunday Business Post reported. Analysts speculate Eircom will likely to stop all recruitment and accelerate its job reduction scheme including management in senior and middle levels. In December, Vodafone agreed to buy Eircom's mobile arm Eircell in an all-paper deal at around 3.5 billion euros ($3.21 billion), while Irish consortium eIsland 10 days ago renewed a bid for the rest of Eircom's operations at around 2.5 billion euros. A potential rival bidder, former cable company executive Pearse Flynn, also joined last week but has not yet decided whether to make a bid. ===================== N E T H E R L A N D S ===================== BAAN COMPANY: Investors in Options Sue Amsterdam Exchange ---------------------------------------------------------- Investors in options of insolvent Baan Company NV are suing the Amsterdam exchange, claiming that the exchange should not have suspended the Baan options in August last year while the shares were still being traded, Het Financieele Dagblad and World Reporter said in its February 15 edition. Investors are said to have incurred a total loss of a few million guilders due to the suspension. As of December 1999, Baan, a provider of open systems, client/server based Enterprise Resource Planning software, has a long-term debt of 187.61 million euros and total liabilities of 605.87 million euros. YOOZ: Gets Fl 2.5 Million Loan from Financier ---------------------------------------------- Internet company Yooz has avoided insolvency by securing a Fl 2.5 million loan from an unidentified lender, Het Financieele Dagblad & World Reporter in its February 14 edition said. Supervisory director Maurice de Hond arranged the loan, which will be used to dismantle the failed Internet activities. According to insiders, Dutch Internet investment company Newconomy has infused more than Fl 10 million in Yooz. =========== N O R W A Y =========== TELENOR ASA: Posts Drop in Profit After Privatization ------------------------------------------------------ Following its partial privatization last year, telecommunications company Telenor ASA posted a steep decline in pre-tax earnings for 2000 and the fourth quarter to two billion Norwegian kroner ($220.9 million or 244.3 million euros) from 3.31 billion kroner in 1999, Dow Jones said on February 16. Telenor said its pretax results were hit by investments in growth areas, increased interest payments and depreciation and amortization expenses. =========================== U N I T E D K I N G D O M =========================== AILSA (UK): Notice Of Creditors Meeting ---------------------------------------- Company Name: Ailsa (UK) Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 13/02/01 Meeting address: Merchants House 7 West George Street Meeting City Code: Glasgow Authorised by: J E Craig Director 30/01/01 Firm Name: W D Robb Address: Scott House 12/16 South Frederick Street Glasgow G1 1HJ AJL SERVICES: Notice Of Creditors Meeting ------------------------------------------ Company Name: AJL Services Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 13/02/01 Meeting address: The Royal 25 Bank Plain Meeting City Code: Norwich NR2 4SF Authorised by: B Seaman Director 10/01/01 Last day for proxy: 12/02/01 Proxy address: The Royal 25 Bank Plain Norwich NR2 4SF Firm Name: Smith Aston Address: The Royal 25 Bank Plain Norwich NR2 4SF BOOTS PLC: Denies Sale Rumors of Healthcare and Halfords --------------------------------------------------------- Reuters' reported on February 18 that a Boots PLC spokesman has denied a Sunday Times report that the company plans to demerge Boots Healthcare International, raising around 1.3 billion pounds ($1.9 billion). The spokesman also denied that Halfords, Boots' bicycle and car accessory chain, was for sale for 450 million pounds. Earlier this month, Boots Plc, Britain's top retail pharmacy chain, was forced to deny a report that it planned more than 1,000 job cuts in the wake of a cost cutting drive it launched in November. In January the group reported a 1.5 percent drop in sales for the Christmas period. BOOTS PLC: Pharmacy Chain to Present Restructuring Plan -------------------------------------------------------- Britain's top retail pharmacy chain, Boots Plc, plans to present investors with a detailed update of its business overhaul plans this spring in an attempt to revive its flagging high street fortunes, Reuters said on Sunday. Boots plans to divide its 1,400 stores into two groups -- convenience stores for quick shopping and new up-market branches -- to make a move into beauty therapy, chiropody and other services. BRITISH TELECOM: Considers Demerger of BT Wireless --------------------------------------------------- British Telecom Plc is considering options to solve its growing debt crisis, the Financial Times reported on Monday. One option is a full demerger of its mobile telecommunications division, BT Wireless. It was understood that the group's advisers at Morgan Stanley Dean Witter have begun work on a full demerger. The Times said BT would push ahead with a partial flotation of Wireless but would target existing investors. An initial public offering of BT Wireless currently forms British Telecom's plan to cut a third of its debt, which is set to reach 30 million pounds ($43.56 million) this year. CALLCOTT ANDERSON: Notice Of Creditors Meeting ----------------------------------------------- Company Name: Callcott Anderson Brand Design Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 13/02/01 Meeting address: Langley House Park Road East Finchley Meeting City Code: London N2 8EX Authorised by: D Anderson Director 23/01/01 Last day for proxy: 12/02/01 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 CANTAB PHARMACEUTICAL: Posts Pre-Tax Loss of 5.14 Million Pounds ----------------------------------------------------------------- Cantab Pharmaceutical Plc, which develops biopharmaceutical products for the treatment and prevention of chronic infectious diseases, cancer and substance addiction, has reported a full- year pre-tax losses of 5.14 million pounds with no dividend, The Times said in its Tuesday edition. As of December 1999, the company had total liabilities of 5.30 million pounds. CHEMI PETRO: Notice Of Creditors Meeting ----------------------------------------- Company Name: Chemi Petro Engineering Ltd IA 1986 Section: 98 Creditors Meeting Time: 02.00 pm Meeting date: 13/02/01 Meeting address: Church Steps House Queensway Meeting City Code: Halesowen B63 4AB Authorised by: C Massey 19/01/01 Liquidators: David T Greensill Firm Name: Mayfields Address: Church Steps House Queensway Halesowen B63 4AB EGG BANK: Posts 155.3 Million Pounds Pre-tax Loss -------------------------------------------------- Britain's first publicly traded Internet bank, Egg, has incurred a pre-tax loss of 155.3 million pounds for the year, according to The Times yesterday. The TCR-EUR noted last year that Egg had a first-half net loss of 80.7 million pounds ($122.3 million). EQUITABLE LIFE: FSA Investigates Pension Sales ----------------------------------------------- City watchdog Financial Services Authority has launched an investigation into Equitable Life's trading of investment products between January and July of last year. BBC reported February 17 that the troubled insurance company, which has recently agreed a 1 billion-pound takeover deal with mortgage bank Halifax, failed to warn investors of the risk to their money. In January 2000, Equitable lost its case over the payment of guaranteed pensions in the Court of Appeal, a decision upheld by the House of Lords in July. The insurer has claimed it sold investments to 20,000 new customers in between the hearings. EUROTUNNEL PLC: Charles Mackay Replaces Chairman Ponsolle ---------------------------------------------------------- Chairman Patrick Ponsolle announced he would not renew his Eurotunnel Plc contract on Monday, according to La Tribune & World Reporter. Deputy Charles Mackay will replace Ponsolle, who was questioned about misappropriation of funds in May while his two predecessors were attacked for receiving excessive salaries. Last year, debts of the channel tunnel operator were restructured. At the end of 1999, Eurotunnel, which provides a direct rail link between the United Kingdom and mainland Europe, had a negative working capital. Its current liabilities were 340.09 million pounds, while total current assets were only 308.49 million pounds. FUTURE NETWORKS: Publisher Reduces Operations ---------------------------------------------- The Future Network plc, an international publisher of specialist magazines, announced on February 16 measures that are designed to streamline the company's portfolio, reduce operating costs, pay down debt and enhance profitability. The company will close or sell 20 loss-making magazines out of a total portfolio of 134 titles and will reduce its Internet development costs. In addition, the company has announced that it has appointed Morgan Stanley Dean Witter to review strategic alternatives for the next stage of the development of its US- based magazine, Business 2.0. The specific actions announced include: - Closure of six magazines in the US, including music magazine Revolution and the US edition of T3. - Closure of six smaller titles in the UK. - Rationalisation of the French and German subsidiaries, with the closure of eight loss making titles. - Refocusing of Internet activity on the company's most successful Web sites, with the closure of five smaller Web sites and a reduction of approximately 75 staff in the US and the UK. - Reduction in overhead costs in the UK, US, France and Germany. The above actions will result in a reduction across the group of approximately 350 jobs out of a current workforce of approximately 2,000 employees. Titles being closed in this process accounted for approximately 7 percent of group revenues in 2000. The closures will enable the company to reduce its investment expenditures in 2001 by approximately 5 million pounds to below 15 million pounds, which includes losses already incurred on these titles in the first quarter of 2001. One-time restructuring costs, which are expected to be less than 5 million pounds, are not included in the above figures. Additionally, Morgan Stanley Dean Witter has been appointed to explore options for the next stage of development of Business 2.0, including possible sale or joint venture. The group's preliminary results for 2000 will be announced on March 19, 2001. GILL AVIATION: Notice Of Creditors Meeting ------------------------------------------- Company Name: Gill Aviation Ltd IA 1986 Section: 23 Creditors Meeting Time: 11.30 am Meeting date: 13/02/01 Meeting address: The Thistle Hotel Neville Street Meeting City Code: Newcastle-u-Tyne Authorised by: Ian T Watters Joint Administrator 26/01/01 Last day for proxy: 12/02/01 Proxy address: 18 Charlotte Square Edinburgh EH2 4DF Firm Name: Arthur Andersen Address: 18 Charlotte Square Edinburgh EH2 4DF KENWOOD APPLIANCES: Italian Firm Acquires Kenwood for 46 Million ----------------------------------------------------------------- Kenwood Appliances Plc, which provides small domestic appliances, has been bought by Italian manufacturing firm De'Longhi Pinguino for 45.9 million pounds ($66.5 million), according to BBC in its February 16 report. The Kenwood board unanimously recommended De'Longhi's cash offer above other bids. With the two businesses combined, De'Longhi hopes to create a leading European manufacturer and distributor of air conditioning, heating, cooking and food preparation appliances. As of March 2000, the company's long-term debt was 1.20 million pounds and total liabilities were 76.69 million pounds. KINGFISHER PLC: Considers Wegert Sale -------------------------------------- After continued poor performance and trading difficulties in the German market, retail conglomerate Kingfisher Plc has considered selling its loss-making German electrical business Wegert, the Financial Times said in its Monday report. The news follows a move last week to shake up the management at Wegert, including bringing back the two founders who sold the business to Kingfisher as advisers. Kingfisher spent more than 70 million pounds ($101.3 million) to buy the business from Michael and Matthias Wegert in 1998. For the half-year to August 2000, the German operations posted losses of 13.9 million pounds. MILCHESTER CORPORATION: Notice Of Creditors Meeting ---------------------------------------------------- Company Name: Milchester Corporation Ltd IA 1986 Section: 98 Creditors Meeting Time: 12.00 pm Meeting date: 13/02/01 Meeting address: Mountview Court 1148 High Road Whetstone Meeting City Code: London N20 0RA Authorised by: Hallmark Management Ltd Director 25/01/01 Last day for proxy: 12/02/01 Proxy address: Mountview Court 1148 High Road Whetstone London N20 0RA Liquidators: Kikis Kallis Firm Name: Kallis & Co Address: Mountview Court 1148 High Road Whetstone London N20 0RA MILLENIUM DOME: Nomura Backs Gerbeau in Dome Bid ------------------------------------------------- Guy Hands, the Nomura banker who headed Dome Europe, has considered returning to bid for the ill-fated tourist attraction following the collapse of negotiations with the Legacy consortium, according to Electronic Telegraph yesterday. Former Dome chief executive Pierre-Yves Gerbeau has regularly claimed that Hands and Nomura International are backing him. The confirmation of interest came when a report on the 127-acre Dome site was published, claiming that it could be valued at 400 million pounds if the attraction were demolished. MILLENNIUM DOME: Prescott Takes Charge of Dome Bid --------------------------------------------------- In an effort to dispose of the Millennium Dome, Deputy Prime Minister John Prescott has ordered a complete shake up of the rules for the sale of the site, according to The Times on Monday. Prescott, who was angered by the failure to secure a viable Dome bidder, has told aides that he will take a more central role and he is ready to set a tight deadline for the latest set of bidders. Although property developers have expressed interest in the surrounding land, ministers are pessimistic about the new bidders' business plan to reopen the Dome. If the bidders fail to meet Prescott's criteria, he will hand the entire site back to the Government's urban regeneration agency English Partnerships to redevelop it. The rules may also change to enable the Dome to be sold in isolation, with the surrounding 43 acres of land sold to the highest bidders and an adjacent 60 acres also added to the equation. RAILTRACK GROUP: Denies Reports of Bankruptcy ---------------------------------------------- Infrastructure company Railtrack Group Plc has denied newspaper reports that it faces bankruptcy without a cash injection from the government, according to Reuters on Monday. In a statement, the company confirmed that Railtrack's financial position remains unchanged since its announcement to the stock market on January 15. The company said it would need to bring grants that represent over one billion pounds ($1.45 billion), due to be received in 2006. A front-page report in The Guardian says that the Strategic Rail Authority (SRA) has accused Railtrack management of incompetence and that it is close to bankruptcy. The paper further said that in a decision backed by the authority's board, SRA chairman Sir Alastair Morton has ordered a halt to any further funding for rail maintenance and argued for increased vigilance to be placed on Railtrack's spending. XENOVA GROUP: Posts 9.99 Million Pounds Pre-tax Loss ----------------------------------------------------- Xenova Group Plc has announced a full-year pre-tax loss of 9.99 million pounds, according to The Times yesterday. The pharmaceutical company has paid no dividends during the last 12 months and in the previous six fiscal years. The company also reported losses during the previous 12 months. 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 * * *