/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010222.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 Thursday, February 22, 2001, Vol. 2, No. 37 Headlines A U S T R I A STAR TELECOM: Telekom Austria Closes Star Telecom B E L G I U M LERNOUT & HAUSPIE: U.S. Court Grants $60 Million DIP Financing SABENA AIRLINES: SAirGroup to Raise Stake in Sabena C Z E C H R E P U B L I C CIOS HOLDING: Owes Kc459 Million to Creditors ZPS: Administrator to Sell Subsidiaries F R A N C E GENSET SA: Posts 10.9 Million Euros Loss in Fourth Quarter JOB: Workers Appeal to PM Jospin G E R M A N Y ROLAND ERNST: Creditors Demand DM1.5 Billion from Ernst SCHWARZ PHARMA: Operating Loss in 2000 Narrows H U N G A R Y DAM: Firms Submit Bids for Bankrupt Hungarian Steelworks MALEV RT: State Proposes Ft 20 Billion Credit Guarantee N E T H E R L A N D S AERPAC: US Energy Firm Buys Aerpac BOUWMAN GROEP: Subject to Investigation for Large Fraud S P A I N BOLIDEN APIRSA: Closes Zinc Mining Unit S W I T Z E R L A N D FANTASTIC CORPORATION: Loss Widens at Software Company U N I T E D K I N G D O M ALBERT FISHER: Food Distributor to Cut Jobs EQUITABLE LIFE: Prepares Shortlist for Board FRANK USHER: KPMG Seeks Frank Usher Buyer LADYKIRK ESTATE: Notice Of Creditors Meeting LONDON CLUBS: Director Simonds Resigns from Casino Operator MOLLIN PUBLISHING: Notice Of Creditors Meeting SANITA SHIPPING: Notice Of Creditors Meeting ZLAND.COM (UK): Notice Of Creditors Meeting ============= A U S T R I A ============= STAR TELECOM: Telekom Austria Closes Star Telecom -------------------------------------------------- Several thousand customers will be affected by Telekom Austria's move to disconnect Star Telecommunications GmbH from its fixed network due to growing payment arrears, according to Wirtschaftsblatt & World Reporter in its February 19 report. Star Telecom Austria, a subsidiary of Star Telecommunications Holding in Germany, is likely to withdraw from the Austrian market. It could go into insolvency after being cut off from its German network last week. ============= B E L G I U M ============= LERNOUT & HAUSPIE: U.S. Court Grants $60 Million DIP Financing --------------------------------------------------------------- Lernout & Hauspie Speech Products NV announced in a press release on Tuesday that the U.S. Bankruptcy Court for the District of Delaware granted final approval of a 13-month $60 million Debtor in Possession (DIP) financing facility to be provided to L&H and its affiliates, including Dictaphone Corp. and L&H Holdings USA, Inc. Approximately $10 million of the new DIP financing proceeds will be used to fully repay GE Capital for the funds utilized under the terms of the Company's prior DIP financing agreement. "This new financing facility represents another important milestone in our restructuring effort, and will help L&H and its affiliates to continue meeting their operating requirements for the foreseeable future," L&H President and CEO Philippe Bodson said. SABENA AIRLINES: SAirGroup to Raise Stake in Sabena --------------------------------------------------- SAirGroup wants to raise its existing stake in Belgian national airline Sabena SA from 49.5 percent to 85 percent, according to Reuters on Tuesday. Although SAirGroup and the Belgian government on Monday agreed to provide Sabena with 250 million euros of life-saving new capital, SAirGroup's move has thrown Sabena's future into doubt. Air France acquired a 37.5 stake in Sabena in 1992 when Belgium first privatized the airline, but sold its stake just three years later when SAirGroup acquired its holding. British Airways and KLM also invested in a Sabena subsidiary, Sabena World Airlines, in 1989, but sold their stakes in 1990 after a disastrous first year. =========================== C Z E C H R E P U B L I C ============================ CIOS HOLDING: Owes Kc459 Million to Creditors ---------------------------------------------- Cios Holding, which was declared bankrupt by the Regional Court in Hradec Kralove in January, owes Kc459 millions to 148 creditors, Czech News Agency said in its February 16 edition. According to bankruptcy administrator Milan Ruzicka, the creditors committee will call a tender to sell the manufacturing equipment as a whole in July and restore brick production at the company. He plans to contact investors from Germany, the Netherlands and other countries. The National Property Fund is the largest creditor, with a claim of Kc66 million for the sale of the brickworks in 1993. ZPS: Administrator to Sell Subsidiaries ---------------------------------------- ZPS bankruptcy administrator Roman Rais plans to declare a public tender for majority shares in the engineering company's subsidiaries ZPS-FN and ZPS Energetika, according to the February 16 edition of Czech News Agency. Rais said that the asset sale is expected to raise Kc1.5 billion. Companies from the US, Spain and Germany have already expressed interest in ZPS-FN. The parent ZPS, was a unit of the financial ZPS Group, which consisted of some 25 companies. =========== F R A N C E =========== GENSET SA: Posts 10.9 Million Euros Loss in Fourth Quarter ----------------------------------------------------------- Biotechnology firm Genset S.A. reported Tuesday a fourth-quarter net loss of 10.9 million euros, Reuters says. Genset has projected losses in the future as the company continues to invest in research and development. The amount and duration would depend on the company's R&D spending and future licensing deals. JOB: Workers Appeal to PM Jospin --------------------------------- The 168 employees of Job paper mill in Toulouse are seeking help from French prime minister Lionel Jospin to ensure that a papermaking group will take over Job instead of being liquidated, according to La Tribune & World Reporter on Monday. The Toulouse commercial court on February 9 announced that the troubled company went into involuntary liquidation, following Scheufelen's decision to cease payment of all Job's bills. Scheufelen of Germany is Job's sole shareholder. ============= G E R M A N Y ============= ROLAND ERNST: Creditors Demand DM1.5 Billion from Ernst -------------------------------------------------------- Creditors of Roland Ernst Planung und Finanzierung gewerblicher Grundstucke have demanded DM1.5 billion from property mogul Roland Ernst, whose debts amounted to between DM500 and DM600 million, according to Suddeutsche Zeitung & World Reporter in its February 17 report. Ernst's company will discontinue operations on March 31, 2001. An insolvency administrator will also formulate a solution for Ernst to take up business again. SCHWARZ PHARMA: Operating Loss in 2000 Narrows ----------------------------------------------- Schwarz Pharma AG, a mid-sized innovative developer and manufacturer of pharmaceuticals, said on Tuesday that its 2000 operating loss narrowed to 3.6 million euros from 29.9 million, according to Reuters's report. The company has a long-term debt of 51.90 million euros and total liabilities of 364.72 million euros as of December 1999. ============= H U N G A R Y ============= DAM: Firms Submit Bids for Bankrupt Hungarian Steelworks --------------------------------------------------------- Max Aicher GmbH of Germany, Cogne Acciai Cpeciali Srl. Aosta Italy, and the Hungarian Aceltech Steelworks and Trading company have submitted bids to buy DAM steelworks, which went bankrupt in March of last year, according to Agence France-Presse's February 19 report. Bankruptcy official Zsuzsanna Endredi said the prospective buyer must continue to employ the 1,650 workers of DAM, which has operating assets of 7.7 billion forints (29 million euros, 27 million dollars) and must make efforts to protect the environment. The tenders will be evaluated within 15 days. If none of the three are chosen, a new tender process will be launched. MALEV RT: State Proposes Ft 20 Billion Credit Guarantee -------------------------------------------------------- The State Privatization and Holding Co. said that it would propose for the cabinet's approval a Ft 20 billion state credit guarantee for Malev Rt, according to Hungary AM in its February 19 report. The loss-making national airline resumed flights after being paralyzed by a strike of aircraft maintenance workers in early February. ===================== N E T H E R L A N D S ===================== AERPAC: US Energy Firm Buys Aerpac ----------------------------------- US-based energy group Enron will takeover almost the entire production division of Aerpac, an insolvent manufacturer of synthetic windmill vanes, Het Financieele Dagblad & World Reporter said in its February 17 report. With the acquisition, a pending strike at Aerpac on Friday was avoided, while 230 staff will keep their jobs. However, internal restructuring will be unavoidable. Staff became concerned this week about the fact that an acquisition failed to materialize. BOUWMAN GROEP: Subject to Investigation for Large Fraud -------------------------------------------------------- Dutch asset management company and financial services agent Bouwman Groep was subject to searches at company establishments and private property of employees in Westerbork, Groningen and Heerenveen last week, according to De Volkskrant & World Reporter's February 16 report. The company and a number of individuals were suspected of fraud, forgery, participation in criminal organizations and other illegal activities. Bouwman Groep, which has invested Fl 25,000 to Fl 900,000 for a number of investors, was declared insolvent last year, while the chairman and company owner P. Bouwman was declared insolvent on Tuesday. The money of some customers is missing. ========= S P A I N ========= BOLIDEN APIRSA: Closes Zinc Mining Unit ---------------------------------------- Boliden Apirsa said on Friday that its Los Frailes zinc mining unit in southern Spain had temporarily closed since it is not producing zinc, copper, lead or silver, a company spokesman told Reuters last week. The mining operation was also closed to meet local government limits on the amount of residues that could be poured into a waste reservoir. Last year, Boliden Apirsa filed for bankruptcy, as reported in the October 5 issue of TCR-EUR. The mine had to suspend work due to continuous losses since it reopened in the second quarter of 1999. ===================== S W I T Z E R L A N D ===================== FANTASTIC CORPORATION: Loss Widens at Software Company ------------------------------------------------------- Fantastic Corp., which produces software for broadcasting audio and video via the Internet and mobile phones, said its 2000 net loss widened 13 percent to $60.2 million and sales fell 25 percent to $17.1 million from $23 million in 1999, according to Reuters' report on Tuesday. Fantastic's customers include British Telecommunications, Telecom Italia, Deutsche Telekom and Intel Corp. The software company's gross profit sank 35 percent to $13.4 million, while its gross margin dropped to 78 percent from 90 percent in 1999. Fantastic announced a restructuring in December, slashing about a third of its staff of around 350 employees. The company expects to complete its restructuring by the end of this year, when the company plans to break even on a operating level. As of December 1999, the company's long-term debt was 602,535.78 Swiss Francs and total liabilities were 24.08 million Swiss Francs. =========================== U N I T E D K I N G D O M =========================== ALBERT FISHER: Food Distributor to Cut Jobs -------------------------------------------- Albert Fisher Group Plc will cut 180 jobs and close its Grimsby plant to consolidate its frozen food distribution operations on one site. The food distributor, with markets in United Kingdom, Continental Europe and the US, had a long-term debt of 106.60 million pounds and total liabilities of 245.60 million pounds as of August 2000. EQUITABLE LIFE: Prepares Shortlist for Board --------------------------------------------- Equitable Life has drawn up a shortlist for more than 200 applications from people willing to join the troubled mutual life's board. The insurer will appoint up to nine new board members in an attempt to regain the policyholders' confidence in management, according to The Times yesterday. Vanni Treves, the new chairman of Equitable Life, said that they would keep on one existing board member to have some continuity. At least one of the new board members would represent the views of the policyholders. The current board agreed to step down last December when they failed to find a buyer for the mutual. This forced the company to close the doors of its life fund to new business. FRANK USHER: KPMG Seeks Frank Usher Buyer ------------------------------------------ Receiver KPMG is looking for a buyer for Frank Usher, which has collapsed into administration just three months after its managing director Michael Hoch led a 7 million-pound management buyout of the women's evening wear manufacturer, according to The Times yesterday. The buyout, where nearly 120 jobs have been put at risk, was backed by Hong Kong-based trading company Li & Fung and venture capital trust Classic Fund Management. Last year, Frank Usher saw pre-tax profits drop to 352,000 pounds from 1.2 million pounds after turnover fell 2.2 million pounds to 18.2 million pounds. LADYKIRK ESTATE: Notice Of Creditors Meeting --------------------------------------------- Company Name: Ladykirk Estate Hotel Ltd IA 1986 Section: 138 Creditors Meeting Time: 11.00 am Meeting date: 14/02/01 Meeting address: 24 Blythswood Square Meeting City Code: Glasgow G2 4QS Authorised by: Blair C Nimmo Interim Liquidator 29/01/01 Last day for proxy: 13/02/01 Proxy address: 24 Blythswood Square Glasgow G2 4QS Firm Name: KPMG Address: 24 Blythswood Square Glasgow G2 4QS LONDON CLUBS: Director Simonds Resigns from Casino Operator ------------------------------------------------------------ Gavin Simonds, one of London Clubs International Plc's non- executive directors, has resigned after a boardroom dispute over how to resolve the company's exposure to the Aladdin hotel and casino in Las Vegas, The Times said yesterday. A spokesman for the troubled casino operator said that Simonds left because he had differing views from the rest of the board. Simonds was said to be keen to bridge the funding gap through a rights issue, while the board believed it should convert its preference shares in Aladdin into a controlling stake then sell its enlarged stake to a rival operator such as MGM or Donald Trump. At the end of 2000, London Clubs' current liabilities were 39.25 million pounds while total current assets were only 35.50 million pounds. The company has a long-term debt of 133.31 million pounds and total liabilities of 175.83 million pounds as of March last year. MOLLIN PUBLISHING: Notice Of Creditors Meeting ----------------------------------------------- Company Name: Mollin Publishing Ltd IA 1986 Section: 98 Creditors Meeting Time: 12.00 pm Meeting date: 14/02/01 Meeting address: The Insurance Hall 20 Aldermanbury Meeting City Code: London EC2V 7HY Authorised by: Director 22/01/01 Last day for proxy: 13/02/01 Proxy address: 29-31 Greville Street London EC1N 8RB Firm Name: Pridie Brewster Address: 29-31 Greville Street London EC1N 8RB SANITA SHIPPING: Notice Of Creditors Meeting --------------------------------------------- Company Name: Sanita Shipping Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 14/02/01 Meeting address: The Hilton Hotel Ainley Top Meeting City Code: Huddersfield Authorised by: C J Daure Director Last day for proxy: 13/02/01 Proxy address: Norwich House Savile Street Kingston-u-Hull HU1 3ES Firm Name: Carrick Read Insolvency Address: Norwich House Savile Street Kingston-u-Hull HU1 3ES ZLAND.COM (UK): Notice Of Creditors Meeting -------------------------------------------- Company Name: Zland.Com (UK) Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 14/02/01 Meeting address: 4 St Giles Court Southampton Street Meeting City Code: Reading RG1 2QL Authorised by: D Nye Director 19/01/01 Last day for proxy: 13/02/01 Proxy address: 4 St Giles Court Souathampton Street Reading RG1 2QL Firm Name: Harrisons Address: 4 St Giles Court Souathampton Street Reading RG1 2QL 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 * * *