/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010223.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 Friday, February 23, 2001, Vol. 2, No. 38 Headlines A U S T R I A SANOCHEMIA PHARMAZEUTIKA: Losses Widen to 1.69 million Euro B E L G I U M LERNOUT & HAUSPIE: GE Capital to Get $10 Million of DIP Facility LERNOUT & HAUSPIE: Ponders Mendez Unit Sale for $185 Million SPECTOR PHOTO: To Sell Photo Porst C R O A T I A EXCELSIOR HOTEL: Croatia Sells Hotel to Expatriate Investor F I N L A N D F-SECURE OYJ: Posts Widened Loss of 13.3 Million Euro F R A N C E GENSET SA: 2000 Loss Widens to 34.4 Million Euros G E R M A N Y DEUTSCHE TELEKOM: To Cut 2000 Net Income DEUTSCHE TELEKOM: To Sell Assets at 20 Billion Euros LETSBUYIT.COM: Plans to Reopen Business N E T H E R L A N D S LYCOS EUROPE: Posts a EUR160 Million Loss U N I T E D K I N G D O M BALTIMORE TECHNOLOGIES: Posts Loss of 94.2 Million Pounds CAMMELL LAIRD: Shipbuilder Rescue Offer in Danger FATBOY.COM LTD: Notice Of Creditors Meeting FINELIST GROUP: Creditors to Lose Money in Crash MILLENIUM DOME: Ministers Offer More Land in Dome Sale PDP FREIGHT: Notice Of Creditors Meeting POLO ASSOCIATES: Notice Of Creditors Meeting SCOTTISH COURAGE: To Cut Jobs in Plant Closure ============= A U S T R I A ============= SANOCHEMIA PHARMAZEUTIKA: Losses Widen to 1.69 million Euro ------------------------------------------------------------ Austrian drugmaker Sanochemia Pharmazeutika has reported operating losses for the first-quarter of fiscal 2001 widened to 1.69 million euros from 1.11 million euros a year earlier, according to the Financial Times on Tuesday. Sales in the three months through December dropped 15 percent to 1.91 million euros. As of September 2000, the company's long-term debt was 6.53 million euros and total liabilities were 10.32 million euros. Meanwhile, Josef Bockmann, a scientist who has worked at Sandoz and Aventis, will become chief executive on April 1 to replace Johann Roither, who quit amid a dispute over strategy. ============= B E L G I U M ============= LERNOUT & HAUSPIE: GE Capital to Get $10 Million of DIP Facility ----------------------------------------------------------------- Lernout & Hauspie Speech Products NV expects to use about $10 million of a $60 million debtor-in-possession financing facility to fully repay General Electric Co.'s GE Capital unit. On Tuesday Dow Jones reported that Lernout says the newly approved facility will help the company and its affiliates, including Dictaphone Corp. and L&H Holdings USA Inc., continue to meet operating requirements for the future. In November, Lernout and its Dictaphone unit filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Delaware. In January of this year, a Belgian court granted Lernout's request for bankruptcy protection. The court had denied the company's request for concordat, which is Belgium's version of bankruptcy protection, in December. LERNOUT & HAUSPIE: Ponders Mendez Unit Sale for $185 Million ------------------------------------------------------------- Lernout & Hauspie Speech Products NV may sell its Mendez translation unit before June for up to $185 million to help reduce the company's estimated $600 million debt, according to Dow Jones yesterday. Analysts have commented that the $185 million price tag for Mendez won't be enough to pull L&H out of the hole. They say L&H doesn't have cash and needs new clients and new products. Petercam analyst Stefaan Genoe said companies would be interested in Mendez, which L&H bought in September 1996 for $16.9 million. Not only has Mendez functioned as a separate entity that has been responsible for a large part of L&H's revenues, but it is also not part of L&H's bankruptcy protection proceedings. L&H filed for bankruptcy late last year amid an accounting scandal that prompted government investigations in the US and Belgium, a management shakeup and widespread company layoffs. SPECTOR PHOTO: To Sell Photo Porst ----------------------------------- Spector Photo Group SA says it will sell its loss-making unit Photo Porst to e-photography firm Pixelnet AG for a symbolic one mark, according to Reuters on Wednesday. The agreement will ensure that the existing contract for photo developing with its German laboratories continues. The deal came two weeks after Spector said it would stop investing in Photo Porst so as not to jeopardize its other activities. Spector operates photographic laboratories, which develop films and make photographic prints and enlargements both for the trade and the general public. At the end of 1999, Spector had a negative working capital. Its current liabilities were 304.07 million euros while total current assets were only 241.63 million euros. ============= C R O A T I A ============= EXCELSIOR HOTEL: Croatia Sells Hotel to Expatriate Investor ------------------------------------------------------------ Croatia sold the prestigious but indebted Excelsior Hotel on Tuesday for $20 million, Reuters said Wednesday. The huge debts were related to a decade of conflict in the Balkans, including the 1992-95 Bosnian war. Goran Strok, a former racing champion who runs a group of old English-style hotels in Great Britain, and his partner Adrian Zecha of Amanresorts not only bought Excelsior but also its entire debt, including 35 million marks guaranteed by the Croatian government. Strok told Reuters in an interview he would probably have to invest more to upgrade the hotel's standard to five stars so that it can win back wealthy pre-war guests. ============= F I N L A N D ============= F-SECURE OYJ: Posts Widened Loss of 13.3 Million Euro ------------------------------------------------------ F-Secure Oyj, a leading provider of data security solutions, has posted a widened full-year 2000 operating loss of 13.3 million euros ($12.09 million) from 4.0 million in 1999, as a result of higher costs and below-budget sales, according to Reuters on Wednesday. The figures were largely expected following an earlier warning issued when the company gave a preliminary look at its 2000 results on January 19. As of December 1999, the company's long-term debt was 5.00 million euros and total liabilities were 22.19 million euros. =========== F R A N C E =========== GENSET SA: 2000 Loss Widens to 34.4 Million Euros -------------------------------------------------- Biotechnology firm Genset SA posted a wider-than-expected 56 percent loss to 34.4 million euros ($31.4 million) for 2000, compared with 22.1 million euros in 1999, according to The Wall Street Journal yesterday. The loss was just slightly worse than the 32.3 million euros average forecast of analysts surveyed by JCF Group. Genset's shares fell sharply on the news, prompting Paris stock exchange officials to temporarily halt the stock trading on Wednesday. Genset has said it hopes to have a partner for the development of Famoxin, the crown jewel of its obesity research program, within the next year. The company also wants to sell its oligonucleotide business so it can bolster its drug-development operations with acquisitions. ============= G E R M A N Y ============= DEUTSCHE TELEKOM: To Cut 2000 Net Income ----------------------------------------- Germany's dominant phone company revealed on Wednesday that its estimated 2000 net income will have to be cut by 1.4 billion euros ($1.28 billion) because it has to depreciate the pretax value of its real-estate holdings by 2 billion euros, according to The Wall Street Journal yesterday. The change revealed a fourth-quarter loss of 2.5 billion euros. Meanwhile, Deutsche Telekom and France Telecom SA began the sale of their combined 20 percent stake of American long-distance company Sprint Corp. DEUTSCHE TELEKOM: To Sell Assets at 20 Billion Euros ----------------------------------------------------- Deutsche Telekom said on Monday that it plans to sell its non- core assets worth 20 billion euros (US$18.3 billion) this year to help cut its 2000 debt of 56 billion euros, according to a Kagan World Media report. The assets to be sold include a 10 percent stake in the US-based long-distance phone company Sprint and other regional cable television networks and real estate. DT has also sold stakes in three cable TV networks, with five more being currently negotiated. Moreover, DT plans to float its cellular division T-Mobile in the fourth quarter of 2001, which could earn it 10 billion Euros. LETSBUYIT.COM: Plans to Reopen Business ---------------------------------------- Letsbuyit.com NV plans to resume businesses in Germany, France, Sweden and the United Kingdom in the next few days, following a court decision in Amsterdam to lift a moratorium imposed on the company on December, according to The Wall Street Journal yesterday. The Internet retailer has completed its last round of financing, raising 52 million euros ($47.4 million) from existing shareholders and new investors, including the German hacker- turned-Internet-entrepreneur Kim Schmitz, who promised the company as much as 50 million euros to bring it back from near bankruptcy. In line with its restructuring plan, Letsbuyit has closed offices in seven countries and reduced its employees to 150 from 350. The company said it would now settle demands from creditors, refund customers and fulfill any outstanding orders. ===================== N E T H E R L A N D S ===================== LYCOS EUROPE: Posts a EUR160 Million Loss ------------------------------------------ Lycos Europe NV, an online media company, reported on Wednesday a net loss of EUR160 million or EUR0.51 per share, Dow Jones said. Lycos posted a loss before interest, taxes, depreciation and amortization of EUR116.9 million in the first six months of 2001, compared with a loss of EUR17.4 million in 2000. The loss was largely due to the first time consolidation and depreciation of its newly acquired Spray Network and extensive European marketing expenses. It plans to take restructuring measures to reduce costs at Lycos Europe and Spray Network. =========================== U N I T E D K I N G D O M =========================== BALTIMORE TECHNOLOGIES: Posts Loss of 94.2 Million Pounds ---------------------------------------------------------- Baltimore Technologies Plc has incurred a pre-tax loss of 94.2 million pounds for the year, according to The Times yesterday. The company has a reported long-term debt of 5.57 million pounds and total liabilities of 19.19 million pounds as of December 1999. Baltimore Technologies develops and markets e-security technology to assist organizations in building secure, trusted systems for e-business, the Internet and mobile commerce. CAMMELL LAIRD: Shipbuilder Rescue Offer in Danger -------------------------------------------------- The government's attempt to save jobs at struggling shipbuilder Cammell Laird was in great danger after the chairman of a cruise ship, who offered a lifeline contract to Cammell, said that the deal looked dead, the Guardian reported on Wednesday. "We have been offered impossible terms. I do not want to be the one to bring bad news but you cannot keep pushing water up a hill indefinitely," said Luxus chairman Jim Davis. The DTI originally offered $300 million (208 million pounds) in guaranteed loans for a $500 million contract to build two cruise vessels to provide the ailing shipbuilder with enough work for the next three years. On Monday, the government offered to share an extra $100 million. Cammell, which has been in trouble since last August when a 50 million-pound deal was cancelled at the last minute, threatened to cut 1,500 jobs and close shipyards two weeks ago unless the government came up with financial support within days. FATBOY.COM LTD: Notice Of Creditors Meeting -------------------------------------------- Company Name: Fatboy.Com Ltd Nature Of Business: Telecommunications IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 15/02/01 Meeting address: 1 Winckley Court Chapel Street Meeting City Code: Preston PR1 8BU Authorised by: N Cracknell Director 26/01/01 Last day for proxy: 14/02/01 Proxy address: 1 Winckley Court Chapel Street Preston PR1 8BU Firm Name: Begbies Traynor Address: 1 Winckley Court Chapel Street Preston PR1 8BU FINELIST GROUP: Creditors to Lose Money in Crash ------------------------------------------------- Receivers from Ernst & Young told hundreds of Finelist Group Plc creditors that they would lose their money in the collapsed car parts distributor, according to Birmingham Post on Tuesday. Even the banks have been told they will not get the full amount, despite the fact that seven of Finelist's main businesses have been successfully sold. Finelist, which distributes replacement vehicle parts to the UK automotive aftermarket, operates through approximately 750 sites. MILLENIUM DOME: Ministers Offer More Land in Dome Sale ------------------------------------------------------- Following the collapse last week of the deal to sell 63 acres to Legacy, English Partnerships, ministers are set to sell more land with the Millennium Dome, according to the Financial Times on Tuesday, in an attempt to entice new bidders for the attraction. The government has decided to increase the package to 123 acres of the 294-acre site to increase the value of the Dome. Legacy was prepared to pay about 125 million pounds for the original site. The Tories also said the Dome would be worth up to 400 million pounds. If the 123-acre package goes on sale, Dome minister Lord Falconer would take a back seat in negotiations, while deputy prime minister John Prescott would take primary responsibility. Several property developers have come forward as potential bidders for the Dome recently -- Grosvenor Estates, Stanhope, Lend Lease and Quintain. PDP FREIGHT: Notice Of Creditors Meeting ---------------------------------------- Company Name: PDP Freight Servs (Wellingborough) Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 15/02/01 Meeting address: The Tudor Gate Hotel High Street Meeting City Code: Finedon Authorised by: P J MacSwiney Director 31/01/01 Last day for proxy: 14/02/01 Proxy address: PO Box 5895 Wellingborough NN8 5ZD Liquidators: Alan R Price Firm Name: Price & Co Address: PO Box 5895 Wellingborough NN8 5ZD POLO ASSOCIATES: Notice Of Creditors Meeting --------------------------------------------- Company Name: Polo Associates Ltd Nature Of Business: Architectural, Technical Consult IA 1986 Section: 98 Creditors Meeting Time: 12.30 pm Meeting date: 15/02/01 Meeting address: Mountview Court 1148 High Road Whetstone Meeting City Code: London N20 0RA Authorised by: Hallmark Management Director 25/01/01 Last day for proxy: 14/02/01 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 SCOTTISH COURAGE: To Cut Jobs in Plant Closure ----------------------------------------------- Scottish Courage will close its bottling and canning plant in Edinburgh over the next 18 months, creating 170 job losses, according to The Times yesterday. The announcement follows last month's decision to cut 1,300 brewing division jobs in a revamp of its distribution arm. 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. 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