/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010622.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, June 22, 2001, Vol. 2, No. 122 Headlines * A U S T R I A * LIBRO AG: Denies Participation in Take-Over Bid * B E L G I U M * CUSTOM SILICON: Shareholders Support Restructuring Plan LERNOUT & HAUSPIE: Court Rejects Recovery Plan LERNOUT & HAUSPIE: Introduces Revolutionary Software * C Z E C H R E P U B L I C * VITKOVICE: Posts Kc8.836BB Loss for 2000 * F R A N C E * AIR LIBERTE: Sees Partial Acquisition by July BATA: Confirms Closure of French Factory * G E R M A N Y * KABEL: Will Post 14MM-Euro Loss in Fourth Quarter MET@BOX AG: Appoints New Executive Board Member * I T A L Y * GRAPES COMMUNICATIONS: S&P Confirms Rating to CCC- * S W E D E N * BOLIDEN LIMITED: Company Profile * S W I T Z E R L A N D * SWISSAIR GROUP: Will Not Finance Belgian Airline Operations * U N I T E D K I N G D O M * ALLDAYS PLC: Posts 1.5MM-Pound Loss in Six Months BOOKHAM TECHNOLOGY: Shares Slide on Losses DANKA BUSINESS: Amends Exchange Offer Conditions GLOBAL TELESYSTEMS: Terminates Sale of Central European Division INDEPENDENT INSURANCE: Delays Payout to Policyholders INDEPENDENT INSURANCE: Seeks Buyer for French Unit MARKS & SPENCER: Hopes to Raise 800MM Pounds From Sell-Off ONE.TEL: Centrica Leads Bid for UK Arm ============= A U S T R I A ============= LIBRO AG: Denies Participation in Take-Over Bid ----------------------------------------------- YLine AG made it clear it is not actively engaged in the Libro takeover bid, Nasdaq Europe on Monday reported. YLine said it would not invest into the Austrian retailer. The company is only prepared to be the Application Service Provider for Libro AG on a cash for delivery basis. Nevertheless, to sign an ASP contract with YLine would significantly drive down Libro's operating costs and contribute to profitability. ============= B E L G I U M ============= CUSTOM SILICON: Shareholders Support Restructuring Plan ------------------------------------------------------- A majority of Custom Silicon shareholders have approved the company's restructuring plan, Nasdaq Europe in its Wednesday press release said. Custom Silicon is a manufacturer and distributor of semiconductor packaging. 167 creditors voted for the restructuring plan, while two were opposed. The company has offered its creditors a choice between coverting claim into convertible obligations or having their claim paid at a rate of 12.5 % on December 20, 2001 and 12.5% on June 20, 2002, without interest. Accepted creditors were also given the option to have this debt paid at a rate of 60% on September 30, 2001. These creditors have the possibility of converting their debt claim into a convertible obligation. The Court will make its decision on the restructuring plan on June 29. LERNOUT & HAUSPIE: Court Rejects Recovery Plan ---------------------------------------------- Belgium's Ieper commercial court on Wednesday rejected Lernout & Hauspie Products NV's recovery plan, the Wall Street Journal reported. The creditors of the speech-technology company approved the restructuring plan, but the judge at a Belgian court said it lacked the necessary transparency towards creditors KBC NV, Fortis NV and Artesia Banking Corp. of Belgium, and Deutsche Bank AG and Dresdner Bank AG of Germany. In his plan, Chief Executive Philippe Bodson proposed either selling L&H's speech and language technology or forming a new company from those assets to repay creditors. Judge Michel Handschoewerker said, however, that the plan fails to state how much it is losing, including the restructuring costs and the costs of external advisers. The court extended temporary bankruptcy protection to September 30 and said L&H must come up with a new recovery plan by September 10. LERNOUT & HAUSPIE: Introduces Revolutionary Software ---------------------------------------------------- Lernout & Hauspie Speech Products NV, a world leader in speech and language technology, products and services, on Wednesday announced at the Streaming Media West show the general availability of L&H MediaIndexer(TM) software. The software allows users to easily identify and catalog specific spoken content (U.S. English) of audio and audio-visual recordings, as well as live sources. Based on L&H's AudioMining(TM) technology, this new software's audio cataloging feature makes it possible for the user to search for and replay specific words or phrases within audio recordings, a process that can also be conducted over the Internet. L&H MediaIndexer(TM) is the most effective and efficient large vocabulary, speaker independent, audio cataloging solution in its class. The centerpiece of L&H MediaIndexer(TM) technology is the Speech Scanner, a timeline graph that provides fast and easy navigation of audio files, and which is far superior to the rudimentary "start" and "stop" functions of conventional media player controls. The user can quickly locate specific words and phrases that match their search request, then click and play back the desired audio content using streaming media technology over the Internet. In addition, for each search, a digitized file is automatically and simultaneously created by L&H MediaIndexer's (TM) cataloging technology. XEIKON NV: Company Profile -------------------------- Name: XEIKON NV Vredebaan 72 2640 Mortsel Belgium Tel.: +32 (0)3 443 1311 Website: www.xeikon.com SIC: Business Machines & Office Equipment Employees: 900 (1999) Revenues: US$33.6 million (Quarter Ending March 2001) Net Income: US$-11.1 million (Quarter Ending March 2001) Total Assets: US$180.9 million (Quarter Ending March 2001) Total Liabilities: US$108.7 million (Quarter Ending March 2001) Type of Business: Develops, produces and markets commercial digital color printing systems and related consumables. President & CEO: Alfons Buts, CFO: Gerrit Keyaerts Auditor: ARTHUR ANDERSEN Antwerp, Belgium Securities: Common shares outstanding (basic) 30,633,055 (3 months ended March 31, 2001) Common shares outstanding (diluted) 30,633,055 (3 months ended March 31, 2001) Last published in TCR-EUR on June 20, 2001 ============================ C Z E C H R E P U B L I C ============================ VITKOVICE: Posts Kc8.836BB Loss for 2000 ---------------------------------------- The group comprising steel company Vitkovice and its seven subsidiaries posted an audited consolidated loss of Kc8.836 billion in 2000, against a Kc10.485 billion loss a year earlier, Czech News Agency & World Reporter in its June 19 edition said. The group's assets also dropped from Kc20.817 billion to Kc9.364 billion, while owners' equity totaled a negative Kc4.897 billion against Kc4.059 billion at the end of 1999. =========== F R A N C E =========== AIR LIBERTE: Sees Partial Acquisition by July --------------------------------------------- AOM-Air Liberte chairman Marc Rochet said the company expects a partial acquisition by July 10, which will lead to another form and structure for the company, the AFX News in its Wednesday edition reported. Rochet added that the group's restructuring would lead to a greater number of redundancies than the previously announced 1,300 lay-offs. France's regional airline group, which has been struggling for months to secure new investment, filed for bankruptcy on June 15. BATA: Confirms Closure of French Factory ---------------------------------------- Canadian shoe group Bata told unions that the filing of a bankruptcy statement by the Moussey (Moselle) factory in France was inevitable, La Tribune & World Reporter in its June 19 edition said. The group confirmed the scenario of a termination of payments at the end of June, followed by the filing of a bankruptcy statement in mid-July. ============= G E R M A N Y ============= KABEL: Will Post 14MM-Euro Loss in Fourth Quarter ------------------------------------------------- Multimedia agency Kabel New Media said on Tuesday it would post a widened fourth quarter core loss of slightly less than 14 million euros, compared to a loss of one million euros a year earlier, the Tuesday edition of Reuters said. Kabel New Media spokeswoman Caroline Goetz said the loss before interest, tax, amortization of goodwill and stock options was mainly due to restructuring costs and the loss of a major customer. MET@BOX AG: Appoints New Executive Board Member ----------------------------------------------- Met@box AG, producers of set-top boxes, has appointed Michael Heckeroth as full member of the board of directors, the Frankfurt Stock Exchange in its Tuesday press release said. The 51-year-old psychologist has experience in the domain of hardware development, economical mediation and crisis management. Heckeroth is also a founder and speaker of the "Aktion"rsgemeinschaft Met@box". Metabox AG has filed for insolvency proceedings at the Hildesheim district court in May due to insufficient liquidity. ========= I T A L Y ========= GRAPES COMMUNICATIONS: S&P Confirms Rating to CCC- -------------------------------------------------- Standard & Poor's on Wednesday affirmed its triple-'C'-minus long-term corporate credit rating of communications services provider Grapes Communications N.V., following the repayment and cancellation of its 175-million-euro bank facility. The rating on Grapes' 200-million-euro senior unsecured notes was at the same time raised to triple-'C'-minus from single-'C', as the cancellation of the secured bank facility has removed the primary factor for the subordination of the company's senior unsecured debt. With an estimated cash-burn rate of about 17 million euro per quarter, Grapes is expected to have sufficient cash to fund its operations for the coming two to three quarters. However, the company's its ability to secure additional funding during the coming period is a critical factor and remains highly uncertain. =========== S W E D E N =========== BOLIDEN LIMITED: Company Profile -------------------------------- Name: BOLIDEN LIMITED 3300 Bloor Street West West Tower, Suite 1500 Etobicoke, Ontario M8X 2X2 CAN Phone 416-364-2727 Website: www.boliden.se SIC: Metal Producers & Products Manufacturers Employees: 5,500 Revenues: US$311,764,000 (3 months ended March 31, 2001) Net Loss: US$21,488,000 (3 months ended March 31, 2001) Assets: US$1,250,954,000 (as of March 31, 2001) Liabilities: US$1,193,119,000 (as of March 31, 2001) Type of Business: Boliden Limited is engaged in the mining, processing and sale of metals and minerals, principally zinc, copper and gold. Trigger Event: Noranda Inc and its nickel affiliate Falconbridge Ltd. filed a $162 million lawsuit against miner Boliden Ltd., alleging it breached a contract to sell them its Chilean assets Lomas Bayas mine and Fortuna de Cobre. Corporate Director: Frederick Telmer Deputy Chairman: Robert Mcdermott President. & CEO: Thomas Cederborg Snr. VP & Chief Financial: Anders Haker Auditor: KPMG Suite 3300, Box 31 Commerce Court West Toronto, Canada, M5L 1B2 Phone 416-777-8500 Securities: Preferred shares 79,115,000 Common shares 790,963,000 Last published in TCR-EUR on June 13, 2001 ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Will Not Finance Belgian Airline Operations ----------------------------------------------------------- Swissair Group said it would not finance operations at Belgium's Sabena and France's AOM-Air Liberte, according to the Wednesday edition of AFX News. However, Swissair spokesman Jean-Claude Donzel noted that a commercial court in Creteil, France might order a capital injection into AOM-Air Liberte. The same commercial court placed AOM-Air Liberte under protection from its creditors for three months. The French airlines still needs 120 million Swiss francs to keep operating for another three months even with the protection. If AOM-Air Liberte is restructured, more than 1,300 employees will be laid off. =========================== U N I T E D K I N G D O M =========================== ALLDAYS PLC: Posts 1.5MM-Pound Loss in Six Months -------------------------------------------------- Convenience store chain Alldays has posted a deeper half-year loss, which ended April 9, of 1.5 million pounds after a now- abandoned price cutting scheme was introduced, Namnews in its June 19 edition said. The increased loss is attributable to margin dilution, which resulted from pricing initiatives undertaken in the period. BOOKHAM TECHNOLOGY: Shares Slide on Losses ------------------------------------------ Shares in Bookham Technology have slumped by 211p after the optical chips company warned it was hit by continuing inventory correction by customers. Bookham said its sales for the May-to-July quarter would come in 45 to 55% below those of the three months before. The firm previously forecasted a decline of 24 to 40%. Furthermore, Bookham revealed it would cut 100 manufacturing jobs in an effort to cut costs. It already shed about 150 of the 978 staff it employed at the start of the year. DANKA BUSINESS: Amends Exchange Offer Conditions ------------------------------------------------ Danka Business Systems PLC, the world's largest independent suppliers of office imaging equipment, on Monday said it has amended two of the conditions of its pending exchange offer for its outstanding $200 million of 6.75% convertible subordinated notes due 2002 in response to comments made by the Securities and Exchange Commission. The exchange offer is now conditioned on the consent of Danka's senior bank lenders. Previously, the exchange offer was conditioned on the refinancing of Danka's senior bank debt. In addition, Pitney Bowes Inc now conditions the exchange offer on the closing of the purchase of DSI. Danka and Pitney Bowes entered into an agreement for the purchase of DSI by Pitney Bowes on April and Danka anticipates that the purchase by Pitney Bowes of DSI will close by June 29. All other terms of the exchange offer remain in effect as previously announced. Banc of America Securities LLC is the exclusive dealer manager for the exchange offer, while D.F. King & Co. is the information agent and HSBC Bank USA is the exchange agent. GLOBAL TELESYSTEMS: Terminates Sale of Central European Division ---------------------------------------------------------------- Global TeleSystems, Inc. on Tuesday said it has terminated discussions to sell its Central European Division because of unfavorable market conditions, Business Wire reported. In November, GTS announced it would sell its Central European unit as a part of its ongoing restructuring effort. Investment bank Credit Suisse First Boston (CSFB) had been managing the sale process on GTS's behalf. GTS also announced that it had initiated discussions with the holders of public debt to develop a consensual financial restructuring plan involving an exchange of non-cash paying securities for those outstanding securities. The company also announced that it had met with legal and financial advisors representing informal committees of those bondholders. INDEPENDENT INSURANCE: Delays Payout to Policyholders ----------------------------------------------------- Policyholders of insurance group Independent Insurance could face delays of more than a year before their claims are settled, the Wednesday edition of the Times said. Independent's liquidator PricewaterhouseCoopers gave a warning on Tuesday that it could take up to six months to work out the level of the company's liabilities and a further six months to formulate a payment scheme for claimants. The Times added that policyholders would be able to recover up to 90% of outstanding claims through the industry-funded compensation provider, Policyholders Protection Board. The warning comes as Royal & SunAlliance admitted that it was in discussions with PwC over the possible purchase of Independent's business. INDEPENDENT INSURANCE: Seeks Buyer for French Unit -------------------------------------------------- Independent Insurance Group, which was placed in receivership on Monday, is looking for a buyer for its French unit as it will not be able to cover claims for long, Les Echos in its June 19 edition reported. The French unit has around 200 staff and generates turnover of 66 million euros. It has a total turnover of 1.3 billion euros. MARKS & SPENCER: Hopes to Raise 800MM Pounds From Sell-Off ---------------------------------------------------------- Marks & Spencer on Tuesday said it hoped to raise up to 800 million pounds from the 80 stores that are up for sale, according to the Times' June 20 edition. The 80 stores are expected to get an excess of 300 million pounds through a restricted sale and leaseback deal. The retailer group intends to secure another 300-400 million pounds of properties later in the year. Property division head Chris Williams said that M&S would continue to trim down its UK portfolio when the current transactions are complete. ONE.TEL: Centrica Leads Bid for UK Arm -------------------------------------- Centrica is the likely victor to buy the UK business of One.Tel, the Australian telecommunications carrier that went into administration last month, according to the Financial Times' report on Monday. A deal with Centrica has not been agreed to yet, but it is understood that other potential buyers are looking at the business. Early this month, One.Tel's French subsidiary went into receivership after the suspension of financial support from the Australian parent to all the European subsidiaries. *********** 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. Kimberly MacAdam, Salve M. Mordeno and Ma. Cristina D. 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 * * *