/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010227.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 Tuesday, February 27, 2001, Vol. 2, No. 40 Headlines B E L G I U M SABENA AIRLINES: SAirGroup to Examine Sabena Investments SABENA SA: Shareholders Approve Airline Restructuring G E R M A N Y DEUTSCHE TELEKOM: To Sell Stakes in Cable-TV Companies MEDIANETCOM AG: Posts 1.44 Million Euros Loss PHILIPP HOLZMANN: Deutsche Bank Junks Out-of-court Settlement PHOTO PORST: PixelNet Buys Photo Porst N E T H E R L A N D S LYCOS EUROPE: To Return 25 Million Shares PHARMING GROUP: Posts 2000 Net Loss of 16.6 Million Euros S P A I N SINTEL: Reaches Crisis Point S W I T Z E R L A N D WORLD ONLINE: Fires All Staff U N I T E D K I N G D O M BRIDGE MOTORS: Liquidation Proceedings EUROTELECOM COMMUNICATIONS: LSE to Probe Collapse of EuroTelecom EUROTELECOM COMMUNICATIONS: Seeks Administrator to Survive GEARHOUSE GROUP: Appoints Administrative Receivers MILLENNIUM DOME: BBC and Tussauds Plan Theme Park for Dome MILLENIUM DOME: Ministers May Invest Public Money for Dome PANTEX (UK): Notice of Creditors Meeting RAILTRACK GROUP: Minister Prescott Bails Out Railtrack REXICON LTD: Notice of Creditors Meeting USB PHARMA: Liquidation Proceedings ============= B E L G I U M ============= SABENA AIRLINES: SAirGroup to Examine Sabena Investments --------------------------------------------------------- Swissair parent SAirGroup aims to make a housecleaning of its investment in Sabena before it moves to join the alliance, according to The Wall Street Journal yesterday. The examination is necessary for the group's financial health and as a way to increase its attractiveness to the alliances, oneworld, Star Alliance and SkyTeam. As part of a 750 million euro restructuring plan that includes job cuts and internal reorganization, SairGroup, which owns 49.5 percent of Sabena, and the Belgian state, with 50.5 percent, agreed on Friday to invest 250 million euros ($228 million) into the flag carrier to keep it alive. SABENA SA: Shareholders Approve Airline Restructuring ------------------------------------------------------ Sabena Airlines is still carrying the Belgian flag around the world with the approval of its restructuring deal on Friday by Sabena's shareholders, the Belgian government and Swissair parent SAirGroup, according to AP Online. The deal includes a cash injection of 150 million euros ($136 million) from SAirGroup and 100 million euros ($90 million) from Brussels to keep Sabena flying. It also hopes to save 52 million euros ($47 million) by cutting 700 jobs and discontinuing unprofitable flights. Even in-flight meals for flight attendants have been cut. SAirGroup has pumped in money but it confirmed it is considering pulling out of its partnership with Sabena as part of a reassessment of its strategy of investing in small European airlines. In 1999, Sabena had an operating profit of 597 million francs ($13.9 million at the time). It lost 59.9 million euros ($54.2 million) in the first half of 2000, citing the strong U.S. dollar and the rise in fuel prices and labor costs, investment in a new fleet and general overhead costs. ============= G E R M A N Y ============= DEUTSCHE TELEKOM: To Sell Stakes in Cable-TV Companies ------------------------------------------------------- Deutsche Telekom AG confirmed on Friday that it signed a letter of intent to sell a 55 percent stake in six regional cable- television companies to US-based investment firm Liberty Media Group, according to The Wall Street Journal yesterday. The cash is needed to cut a 60 billion euro debt that is weighing down the company's stock price. While details of the agreement, including the final price, are still being negotiated, the deal gives Liberty access to more than 10 million households in a dozen German states and stakes in Deutsche Telekom's media and cable-services businesses in each of the six regions. The deal is expected to close by the middle of the year. The sale includes six cable operations in Bavaria in the south to Schleswig-Holstein on the northern coast for 20 percent of the stake, 65 percent stake of its operations Hesse and Frankfurt in March, and a 55 percent stake in Deutsche Telekom's North Rhine- Westphalia and Baden-Wuerttemburg networks. MEDIANETCOM AG: Posts 1.44 Million Euros Loss ---------------------------------------------- Medianetcom AG's loss before interest and taxes in the first three quarters of fiscal 2001, ending March 2000, widened to around 1.44 million euros, according to Handelsblatt on Friday. The loss was due to marketing and project costs. PHILIPP HOLZMANN: Deutsche Bank Junks Out-of-court Settlement -------------------------------------------------------------- Lawyers representing Deutsche Bank AG and the struggling construction group Philipp Holzmann AG have rejected a call for an out-of-court settlement with investment group Gevaert NV, according to Suddeutsche Zeitung & World Reporter in its February 24 report. Gevaert and its chairman Andre Leysen are said to have ample time to make a step towards reconciliation. Gevaert is trying to recover some of the losses incurred when Holzmann came close to bankruptcy at the end of 1999. It contributed to a DM1.5 billion rescue package. It maintains that it was kept in the dark by Deutsche Bank about the full extent of Holzmann's problems and is demanding a total of DM400 million in damages and compensation. PHOTO PORST: PixelNet Buys Photo Porst --------------------------------------- Online photographic service provider PixelNet AG has reached an agreement with Spector Photo to acquire Photo Porst AG for a symbolic DM1, Frankfurter Rundschau & World Reporter said in its February 23 report. A capital increase by DM20 million will be carried out. According to Spector, PixelNet's acquisition should save Porst from liquidation. PixelNet also aims to promote its new subsidiary to a prominent position in digital photography and add mobile telephones to its product range. ===================== N E T H E R L A N D S ===================== LYCOS EUROPE: To Return 25 Million Shares ------------------------------------------ Lycos Europe announced on Friday an exchange of 25 million shares as part of a package relating to the acquisition of Swedish Internet firm Spray Networks from Spray Ventures last October, according to a Dow Jones report. The 25 million shares were exchanged in lieu of Spray Venture's two missing payments, meaning that the company will not have to dispose of Lycos shares to finance the payments after the end of the April lock-up period. The arrangement is a sign that Lycos Europe is now only paying 66.3 million shares, instead of the negotiated 91.3 million, for Spray Networks. To recall, TCR-EUR reported that Lycos Europe posted a EUR160 million loss on Wednesday due to the first time consolidation and depreciation of its newly acquired Spray Network and extensive European marketing expenses. Lycos also plans to take restructuring measures to reduce costs in both companies. PHARMING GROUP: Posts 2000 Net Loss of 16.6 Million Euros ---------------------------------------------------------- Biotechnology company Pharming Group N.V. said on Friday its 2000 net loss widened by 18 percent to 16.6 million euros, according to Reuters on Friday. As of December 1999, the company's long-term debt was 2.30 million Euro and total liabilities were 13.18 million Euro. Pharming develops therapeutic products for the treatment of a range of medical indications. ========= S P A I N ========= SINTEL: Reaches Crisis Point ----------------------------- Sintel, which specializes in the installation of telecommunications networks, has reached a crisis point and could face bankruptcy within 15 days, according to Expansion & World Reporter's February 21 report. The Spanish company needs to reduce its workforce to just 818 employees. It currently has a list of 1,500 creditors that includes the Spanish finance ministry and social security department, which are owed 24 million euros (Pta4 billion), and telecommunication operator Telefonica SA, which is owed 12 million euros (Pta2 billion). ===================== S W I T Z E R L A N D ===================== WORLD ONLINE: Fires All Staff ------------------------------ World Online SA has announced a collective termination contract for all its employees on Friday as a result of a restructuring plan, according to Reuters. Italy's Tiscali owns the Swiss arm of Internet service provider World Online. =========================== U N I T E D K I N G D O M =========================== BRIDGE MOTORS: Liquidation Proceedings --------------------------------------- Company Name: Bridge Motors Handling Ltd Company No: 3137723 Com. Business: Investment & Holding Co/Car Dealers Appointed on: 01/02/01 Type: Creditors Appointed by: Creditors and Members Liquidators: David G Richardson IPno: 2485 Firm Name: Muras Baker Jones & Co Address: Regent House Bath Avenue City Postcode: Wolverhampton WV1 4EG EUROTELECOM COMMUNICATIONS: LSE to Probe Collapse of EuroTelecom ----------------------------------------------------------------- The London stock exchange is expected to launch an investigation into the collapse of hi-tech infrastructure specialist EuroTelecom, which was forced to call in administrators on Friday, according to The Guardian in its February 24 edition. Shareholders were surprised by the company's sudden misfortune. There id also a bitter split between the company's executive management and non-executive directors, where the non-executives commissioned accountants BDO Stoy Hayward to conduct an independent audit of the figures. Three directors, including finance chief David Linell, and Amanda Staveley have quit the firm. PricewaterhouseCoopers was appointed as administrator. EUROTELECOM COMMUNICATIONS: Seeks Administrator to Survive ----------------------------------------------------------- Troubled telecom company EuroTelecom Communications Inc. said on Friday that it would seek an administrator for its main operating subsidiary in order to survive, according to Reuters in its February 23 report. The company also said it is still in talks regarding a possible fund injection to resolve its working capital difficulties. Earlier in the month, EuroTelecom lost a third of its market value when it revealed it was in talks to secure extra funding. Two directors of EuroTelecom, which has had personnel problems, will be resigning this month. GEARHOUSE GROUP: Appoints Administrative Receivers --------------------------------------------------- Gearhouse Group Plc, whose shares were suspended in December because it was unable to report its financial results, said on Friday that they have appointed Ernst and Young as receiver for the firm, according to Reuters. Gearhouse announced in December it was looking for buyers for some of its operations. MILLENNIUM DOME: BBC and Tussauds Plan Theme Park for Dome ----------------------------------------------------------- BBC Worldwide has renewed its partnership with Tussauds group to put in a bid for the Millennium Dome, according to Scotsman.com on Sunday. "The BBC is interested in visitor attractions based on BBC output which would be both fun and educational," a BBC Worldwide spokesman said. BBC Worldwide is BBC's commercial arm, charged with raising revenue for the corporation without using license payers' money. BBC director-general Greg Dyke sees this venture as the best way for the company to produce higher revenues. MILLENIUM DOME: Ministers May Invest Public Money for Dome ----------------------------------------------------------- At least two potential bidders and a senior figure involved in the Dome sale told ministers that they would have to invest public money of up to 30 million pounds, or the Millennium Dome would never open as a visitor attraction, according to The Times yesterday. Pierre-Yves Gerbeau, a leading contender to take over the Dome, warned the Government that unless there is a multimillion-pound investment in the Dome, there is little chance that it can be reopened as an attraction. Guy Hands of Japanese bank Nomura, the original preferred bidder, made the same point in a letter to the Dome Minister Lord Falconer. He believes that a ten-year subsidy is needed. Deputy Prime Minister John Prescott, who is responsible for the sale, is pessimistic about the prospects of any purchaser coming up with a viable scheme. Ministers prefer the option of a combination of a business park and visitor attraction. They insist that they can still secure a willing buyer. PANTEX (UK): Notice of Creditors Meeting ------------------------------------------ Company Name: Pantex (UK) Ltd Nature Of Business: Business & Management Consultancy, General Mechanical Engineering IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 21/02/01 Meeting address: 93 Queen Street Meeting City Code: Sheffield S1 1WF Authorised by: N Dickinson Director 30/01/01 Firm Name: Poppleton & Appleby Address: 93 Queen Street Sheffield S1 1WF RAILTRACK GROUP: Minister Prescott Bails Out Railtrack ------------------------------------------------------- Transport minister John Prescott is set to bail out Railtrack from financial crisis by giving it 1 billion pounds three years ahead of schedule, according to The Sunday Times. The fund will end fears that Railtrack, which has debts of 8 billion pounds, would break its banking covenants within a year. The early funding will not only bring planned spending to at least 3.5 billion pounds, but also give confidence to Railtrack's shareholders and increase support for a huge rights issue to raise further funds for the group. REXICON LTD: Notice of Creditors Meeting ----------------------------------------- Company Name: Rexicon Ltd Other name: IA 1986 Nature Of Business: General Construction & Civil Engineering Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 22/02/01 Meeting address: Pride House Rectory Lane Meeting City Code: Edgware HA8 7LG Authorised by: D R NcClymont Director 06/02/01 Last day for proxy: 21/02/01 Proxy address: Pride House Rectory Lane Edgware HA8 7LG Firm Name: Sinclair Harris Address: Pride House Rectory Lane Edgware HA8 7LG USB PHARMA: Liquidation Proceedings ------------------------------------ Company Name: USB Pharma Ltd Company No: 2806885 Com. Business: Pharmarceutical Research Appointed on: 01/02/01 Type: Members Appointed by: Members Liquidators: David J Pallen IPno: 5317 Firm Name: Ernst & Young Address: Rolls House 7 Rolls Building Fetter Lane City Postcode: London EC4A 1NH 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 * * *