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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, May 16, 2001, Vol. 2, No. 96
Headlines
* B E L G I U M *
LERNOUT & HAUSPIE: Trial Moves to Civic Theatre
SABENA SA: Cancels More Flights
* C Z E C H R E P U B L I C *
LET KUNOVICE: Moravan Makes Deposit for LET
* G E R M A N Y *
BANKGESELLSCHAFT BERLIN: DGZ Expresses Reservation About Stake
K&M MOBEL: Reports Deficit in the First Quarter
* H U N G A R Y *
MALEV AIRLINES: Still Plans to Cut Jobs This Year
* N E T H E R L A N D S *
VERSATEL TELECOM: Sheds 300 Jobs in Cutback
AD PEPPER: Appoints New Board Members
* S P A I N *
IBERIA: First Quarter Net Loss Widens
SINTEL: Spanish Government Calls Meeting to Discuss Crisis
* S W E D E N *
LM ERICSSON: Set for 200 Million Pounds Sale and Leaseback Deal
* U N I T E D K I N G D O M *
EQUITABLE LIFE: Equitable Life Case Decision Is Final
MARKS & SPENCER: Business Unit Director to Take Early Retirement
MARKS & SPENCER: M&S Workers to Hold Protest in London
MARKS & SPENCER: Spanish Stores for Sale
=============
B E L G I U M
=============
LERNOUT & HAUSPIE: Trial Moves to Civic Theatre
------------------------------------------------
On June 5 the commercial court of the Belgian town Ypres will
move to the town's theatre on the possible extension of
suspension of payments for Lernout & Hauspie, the May 11 edition
of De Standaard and World Reporter said.
The court expects 335 creditors, press and members of the general
public.
The session will probably begin with an explanation of L & H
recovery plan by the company board and supervisors, followed by
creditors' questions and comments.
SABENA SA: Cancels More Flights
--------------------------------
A strike action by over 100 workers of Sabena Belgian World
Airlines on Monday caused the cancellation of three flights and
the delay of 18 others, said a spokesman, AFX News reported
Monday.
A group of workers from the 2,000-strong Sabena Technics unit
blocked access to the airport after knowing that the company
would exclude them and all existing employees from plans to offer
a higher wage to attract new recruits.
Although Sabena has withdrawn its proposal to offer new recruits
higher wages, the unions are still seeking a salary increase for
their members, he said.
Sabena reported a net loss of 325 million euros in last year
versus a loss of 14 million euros in 1999.
The creditors may vote on the extension of the suspension of
payments. However, the Ypres court, which will decide within 15
days, is not bound by the outcome of the vote.
===========================
C Z E C H R E P U B L I C
============================
LET KUNOVICE: Moravan Makes Deposit for LET
--------------------------------------------
Moravan Otrokovice, the producer of training, sports and
agricultural planes has made a deposit for LET Kunovice so far
out of seven bidders, Czech News Agency said Friday.
The other bidders who agreed to publish their names are Glenn
Kirbo of the USA and the Czech firm Evektor-Aerotechnik,
specialising in aircraft development.
The second round of the tender should be closed at the end of
June. The purchase contract could be concluded in summer, even
though negotiations will be long and many details discussed, said
Davidova.
The aircraft producer LET has been bankrupt since October 24,
2000. Pan Pacific Airways filed a bankruptcy petition against LET
on August 30, 2000.
=============
G E R M A N Y
=============
BANKGESELLSCHAFT BERLIN: DGZ Expresses Reservation About Stake
---------------------------------------------------------------
The chairman of DGZ Deka Bank has reacted coolly to speculations
that his bank is to acquire a stake in the troubled
Bankgesellschaft Berlin, according to Die Welt on Tuesday.
Chairman Manfred Zas said at the presentation of the annual
report that he would do nothing that would place an increased
debt burden on DGZ's finances. Since talks in May, the sale of
stakes in Bankgesellschaft to DGZ Deka and NordLB remains the
most plausible scenario for a rescue package.
Bankgesellschaft must find 1.5 billion euros to survive. The
company is also the subject of an ongoing investigation by the
banking sector regulator.
The firm provides comprehensive banking services to its core
market of the German capital city and the adjoining state of
Brandenburg.
K&M MOBEL: Reports Deficit in the First Quarter
------------------------------------------------
In the first quarter of financial year 2001, K&M M"bel AG,
Kirchlengern, did not achieve the budgeted figures, which had
already been scaled back in comparison to the previous year,
according to a press release in Frankfurt Stock Exchange May 14,
2001.
This was against the background of a distinct industry-wide
decline in sales and earnings in the furniture sector.
Group sales for the manufacturer of brand name and high-quality
"No-Name" furniture were EUR 62.5 million or 8 % below the
previous year's figure (EUR 68,0). Earnings before interest and
taxes (EBIT) amounted to a negative EUR 0.9 million, compared to
high figure of EUR 4.4 million in the first quarter of 2000.
Despite this, K&M M"bel AG continues to anticipate a significant
improvement in the earnings compared to financial year 2000, which
ended with a net loss of EUR 4.2 million. Nevertheless, for the
time being, in the current conditions the originally planned sales
growth figure is as unlikely to be achieved as a breakeven income
aftertax.
Since an improvement in market conditions is not expected, it is
anticipated that serious measures will have to be taken in order
to reduce costs in accordance with the current order position.
A detailed quarterly report will be published for the Annual
Shareholders' Meeting on May 23, 2001.
=============
H U N G A R Y
=============
MALEV AIRLINES: Still Plans to Cut Jobs This Year
--------------------------------------------------
Malev Hungarian Airlines Rt said it had altered a plan to cut 600
workers in June, but still plans to lay off 600 employees this
year as it sheds some long distance routes, according to Hungary
AM on Monday.
Last month the managers of the APV privatization agency said that
state-owned Malev airline would receive no more than the 86
million euros promised for the company's restructuring even
though it had demanded a minimum of 131 million euros to avoid
liquidation.
APV supported a restructuring plan for Malev, which proposed a
reduction of services and the loss of 25%, or 4,000 staff.
=====================
N E T H E R L A N D S
=====================
VERSATEL TELECOM: Sheds 300 Jobs in Cutback
--------------------------------------------
Versatel Telecom, which includes Irish entrepreneur Denis O'Brien
among its investors, is shedding 300 workers due to reports that
it could be insolvent by the end of 2001, reported Irish
Independent in its May 15 edition.
Last week, Versatel revealed a loss before interest, tax,
depreciation and amortization of 25.8 million euros for the first
quarter of this year. Analysts believe that the loss-making
telecom company will need as much as 300 million euros to see it
through to profitability.
It has also scaled back on a Europe-wide basis to concentrate
only on areas where it owns fiber optic networks.
AD PEPPER: Appoints New Board Members
--------------------------------------
A company press release reported last week the decisions taken at
the Annual Meeting of Ad Pepper Media International N.V. were the
expansion of the company's Management Board to four members and
the subsequent election of Niels Nssler to the role of Chief
Sales Officer. Nssler, a graduate of the Copenhagen Business
School and an experienced online media professional, with several
years content and marketing background with Denmark's second
largest online property, Sondagavisen's www.ophir.dk, will
provide valuable focus for burnishing ad pepper media's
exceptional sales and service reputation, while continuing in the
role of Nordic Regional Director.
Another important move was the appointment of Dr. Bernd Sexauer
to the Supervisory Board, a five member non-executive strategic
advisory body. Mr. Sexauer, a graduate of the University of
Kassel, and a banker by profession, is a member of the leadership
of the Deutsche Beteiligungs AG, the leading German private
venture capital organization. His vision and market understanding
will contribute greatly to ad pepper media's ability to adapt to
changing markets in a dynamic business sector.
The meeting also confirmed and approved previously announced
sales and financial results. Among the key figures: sales growth
to EUR 15.3 Million, up 337% from the previous year's (1999)
total of EUR 3.5 Million, while consolidated net losses were up
285% to EUR -9.6 Million (from EUR -2.5 Million).
=========
S P A I N
=========
IBERIA: First Quarter Net Loss Widens
--------------------------------------
Spanish airline Iberia said its first-quarter net loss widened to
65.2 million euros against 47.9 million euros in 2000, due to
rising fuel costs, Reuters said Monday.
Turnover increased to 1.02 billion euros from 904.7 million
euros, the company told securities regulators. Operating losses
rose to 89.8 million euros from 81 million euros, hit by an
increase in fuel costs.
Preliminary results for the four months through April showed a
loss of 67.6 million euros.
Iberia made its stock market debut on April, but its shares have
failed to catch the eye of investors.
SINTEL: Spanish Government Calls Meeting to Discuss Crisis
-----------------------------------------------------------
A Spanish science and technology ministry reported on Thursday
that it had called a meeting on May 7, 2001 between the multi-
plant workers committee of Sintel, the CC OO and UGT unions, and
delegation from the science and technology and employment
ministries, El Mundo & World Reporter said Friday.
The debt-ridden Spanish telecom manufacturer is in temporary
receivership pending confirmation of its bankruptcy, has revealed
that it intends to make its entire workforce redundant. The firm
has been unable to pay the monthly salary since last July. The
workers have been camped outside the firm's headquarters for 3
months in protest.
===========
S W E D E N
===========
LM ERICSSON: Set for 200 Million Pounds Sale and Leaseback Deal
----------------------------------------------------------------
Ericsson, the cash-strapped mobile phone manufacturer, is close
to signing 200 million pounds sale and leaseback of its European
properties with a consortium of investors led by the Japanese
bank Nomura, the Times said in its May 11 report.
The company has granted a period of exclusivity to the
consortium, which includes Rotch, the private property investors,
Faro, the outsourcing consultancy, and Nomura.
Last month the company reported a first-quarter loss of 337
million pounds and 12,000 job cuts.
===========================
U N I T E D K I N G D O M
===========================
EQUITABLE LIFE: Equitable Life Case Decision Is Final
------------------------------------------------------
Equitable Life, the troubled mutual insurance group, said Monday
that a decision by the UK House of Lords last summer affecting
its policyholders could not be challenged or reopened, Press
Association said in its May 15 edition.
The life assurer recruited a leading QC, Nicholas Warren, in
February to investigate if the case could be reopened. However,
it has been told the ruling, which left it with a o1.5 billion
liability to guaranteed annuity rate (GAR) holders, is
watertight.
MARKS & SPENCER: Business Unit Director to Take Early Retirement
-----------------------------------------------------------------
Marks & Spencer confirmed today that Barry Morris, Business Unit
Director for Womenswear, has asked to take early retirement from
the Company. Succession arrangements will be announced in due
course, according to a company press release May 14, 2001.
In the interim, Yasmin Yusuf, Creative Director, Clothing, will
concentrate exclusively on Womenswear. Barry Morris has been with
Marks & Spencer for 31 year, leading Womenswear since late 1999.
MARKS & SPENCER: M&S Workers to Hold Protest in London
-------------------------------------------------------
Thousands of overseas protesters will besiege Marks & Spencer
PLC's London flagship store on Thursday, reported the Observer,
citing a statement by Trade Union Congress (TUC) general
secretary John Monks.
As many as 4,000 workers from Britain, France, Belgium and Spain
are expected to join the rally, which will take them past the
company's head office in Baker Street and its Oxford Street
store, the Electronic Telegraph said Monday.
The TUC is coordinating the action with its Brussels based
counterpart, the ETUC, and believes it is unprecedented in this
country, it added.
MARKS & SPENCER: Spanish Stores for Sale
-----------------------------------------
Juan Carlos Aparicio, the Spanish employment minister, said
Thursday that the government is in contact with the heads of
various retailers concerning the sale of Marks & Spencer's
Spanish stores, Expansion said Friday.
The firm has announced to shut down all nine of its Spanish
outlets, causing 786 job losses. Aparicio affirmed that the aim
of his ministry is to ensure that these jobs are not lost.
**************
S U B S C R I P T I O N I N F O R M A T I O N
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USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam,
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Copyright 2001. All rights reserved. ISSN 1529-2754.
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* * * End of Transmission * * *