/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010717.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, July 17, 2001, Vol. 2, No. 138 Headlines * A U S T R I A * LIBRO AG: Telekom Austria Concludes Libro Deal * B E L G I U M * SABENA SA: BA Chief Urges Eu to Deny State Aid * C Z E C H R E P U B L I C * TCHECOMALT GROUP: Tomcala Must Not Sell Subsidiaries * F R A N C E * LEON DE BRUXELLES: Resumes Listing of Shares and Bonds MOULINEX SA: Appliance Maker Denies Bankruptcy Report MOULINEX SA: Reveals Restructuring Plan MOULINEX SA: Shares Drop Over Bankruptcy Issue * G E R M A N Y * ADAM OPEL: Workforce Rejects Plant Closures DAIMLERCHRYSLER: Chrysler Will Reorganize Development Process BANKGESELLSCHAFT BERLIN: Shareholders Want Rupf to Stay BANKGESELLSCHAFT BERLIN: Staff Pressures Rupf to Quit DAIMLERCHRYSLER: Chrysler Will Reorganize Development Process REFUGIUM AG: Chief Hopes for Debt to Be Waived * I R E L A N D * CHORUS: May Cut More Jobs EIRCOM PLC: Recommends E-Island Bid * I T A L Y * A.C. FIORENTINA: Court Sets September 15 Deadline to Submit Books EPLANET SPA: Aims for Breakeven in 2004 FREEDOMLAND-ITN: Degiovanni to Step Down From Company * L U X E M B O U R G * CLEARSTREAM: Names Roelants as New CEO * N E T H E R L A N D S * KPN NV: Denies Rumor Board Agrees to Belgacom Merger * S P A I N * JAZZTEL PLC: Share Price Falls 25% * S W E D E N * LM ERICSSON: To Post Larger Second-Quarter Loss * S W I T Z E R L A N D * SWISSAIR GROUP: Presents Recovery Plans SWISSAIR GROUP: Urges Belgian Government to Withdraw Case * U N I T E D K I N G D O M * BALTIMORE TECHNOLOGIES: Denies Takeover Rumors BALTIMORE TECHNOLOGIES: May Face Administration or Takeover BALTIMORE TECHNOLOGIES: Rises 30% After Receiving Takeover Bid BALTIMORE TECHNOLOGIES: U.S.-Based Software Giant in Takeover Bid DURLACHER CORPORATION: To Post Big Loss EQUITABLE LIFE: Offers 20% Increase to Some Members FUTURE NETWORK: Set to Cut 140 Jobs GLOBAL TELESYSTEMS: Bondholders Okay Arrangement Scheme GLOBAL TELESYSTEMS: Enters Into Debt for Equity Exchanges HARNISCHFEGER: Emerges From Bankruptcy Protection INDEPENDENT INSURANCE: PcW May Recover 10MM Pounds From Policy MILLENNIIUM DOME: Receives Acquisition Bid From Wellcome Trust ============= A U S T R I A ============= LIBRO AG: Telekom Austria Concludes Libro Deal ---------------------------------------------- Telekom Austria AG, according to the Friday edition of PR Newswire, has concluded the transfer of its entire stake in Libro AG (25% + 1 share) to Dr Gottwald Kranebitter, who is heading the company's restructuring process. The transaction completes Telekom Austria's involvement with the Austrian book and media retailer. ============= B E L G I U M ============= SABENA SA: BA Chief Urges Eu to Deny State Aid ---------------------------------------------- British Airways chief executive Rod Eddington has asked European Union competition commissioner Mario Monti not to help Belgian national airline Sabena recover from its impending bankruptcy, according to the Sunday Times' report. The BA chief said that Sabena, owned by the Belgian government and Swiss aviation group Swissair, should be allowed to go bankrupt as giving it state aid would be tantamount to breaching regulations of the commission. EU rules stipulate that the Belgian government must first prove that the private sector can aid the troubled airline before it can make its own investment in Sabena. =========================== C Z E C H R E P U B L I C =========================== TCHECOMALT GROUP: Tomcala Must Not Sell Subsidiaries ---------------------------------------------------- Tchecomalt Group bankruptcy administrator Pavel Tomcala must not sell the shares of Tchecomalt's subsidiaries in a tender he himself declared, Czech News Agency reported on Friday. The high court in Olomouc, North Moravia ruled that Tomcala could not be the bankruptcy administrator of the group and of the Potravinarsky holding at the same time, because of links between the two companies. CSOB is the largest creditor of the struggling food-producing group. =========== F R A N C E =========== LEON DE BRUXELLES: Resumes Listing of Shares and Bonds ------------------------------------------------------ The listing of the shares and convertible bonds of restaurant chain Leon de Bruxelles has resumed on Friday upon request of the company, the La Tribune & Financial Times reported. The listing was suspended on June 26. The Nanterre court in France has put the group into receivership on June 27 after learning that debt-restructuring talks have failed. The group is under a six-month observation period. MOULINEX SA: Appliance Maker Denies Bankruptcy Report ----------------------------------------------------- Electrical appliance maker Moulinex-Brandt has denied a Thursday report in Le Figaro newspaper that it could file for bankruptcy as shares fell 20.23%, Reuters reported. Debt-laden Moulinex confirmed it still aims to return to break- even in 2003. It has made a profit only twice in 10 years. MOULINEX SA: Reveals Restructuring Plan --------------------------------------- Chairman and CEO Patrick Puy of electrical appliances group Moulinex-Brandt has proposed a radical restructuring program, according to the July 13 edition of La Tribune & World Reporter. The plan involves 4,000 job cuts, including 1,500 in France, and three factory closures. The trades unions are universally opposed to the plan. The group's creditors - French banks BNP Paribas, Credit Lyonnais and Societe Generale - are reluctant to finance it. Rumors of a declaration of bankruptcy began to circulate in the group's factories this week. These have been denied by Moulinex- Brandt, which currently has debts of 5 billion French francs. MOULINEX SA: Shares Drop Over Bankruptcy Issue ---------------------------------------------- Shares of Moulinex-Brandt lost 20% on Thursday after a report in French newspaper forced the home equipment maker to deny that it was close to bankruptcy, the Financial Times in its July 13 edition said. Le Figaro reported that unions were anticipating bankruptcy because the financial situation had not improved since April and because of the rift on the restructuring plan. Moulinex sought to alleviate concerns about its financial health, saying it aims to reach a breakeven point in 2003 and maintains that its cost-cutting plans were on track despite negotiations with unions. In April, chief executive Patrick Puy unveiled plans to cut workforce by 4,000, including 1,500 in France, and close four factories in Europe and one in Brazil. Moulinex, which has been loosing since 1998, had a net loss of 130 million euros in 2000, compared with a 16 million euros loss in 1999. ============= G E R M A N Y ============= ADAM OPEL: Workforce Rejects Plant Closures ------------------------------------------- Works' council chairman Klaus Franz has rejected Carmaker Adam Opel AG's idea of plant closures as part of efforts to return the group to profit, the Sunday edition of Handelsblatt said. Opel has been suffering from an ongoing decline in demand. This means that the German subsidiary of U.S. car giant General Motors (GM) could easily meet demand without one of its plants. Opel chairman Carl-Peter Forster said that plant closures were a possibility, but at present unlikely. He is due to present the company's restructuring program "Olympia" in September. The "no" to plant closures applied not only to the German sites but also to Opel's other European locations. BANKGESELLSCHAFT BERLIN: Shareholders Want Rupf to Stay ------------------------------------------------------- Representatives of the main shareholders of Bankgesellschaft Berlin AG have agreed that Wolfgang Rupf should remain as chairman of the group until the Annual General Meeting on August 29, according to the Friday report of Frankfurter Allgemeine Zeitung. As a result, the motion by the staff representatives to remove Rupf from office may be denied. BANKGESELLSCHAFT BERLIN: Staff Pressures Rupf to Quit ----------------------------------------------------- Chairman Wolfgang Rupf of Bankgesellschaft Berlin is coming under pressure from employees to step down as the German bank is expected to report a pre-tax loss of about 1.5 billion euros for 2000, compared with a profit of 157 million euros in 1999, the Financial Times reported on Sunday. Shareholders city of Berlin, state-owned Norddeutsche Landesbank and Parion insurance group are opposed to his removal. They want to concentrate not only on reaching agreement on a 2- billion-euro capital increase needed to ensure the bank's survival, but also drawing up a restructuring plan for the group. Bankgesellschaft Berlin has been struggling to complete the 2000 accounts where a probe by German banking regulator Bundesaufsichtsamt fur das Kreditwesen (BaKred) reveales billions of euros in real estate losses. The probe lead to the resignation of five top officials. DAIMLERCHRYSLER: Chrysler Will Reorganize Development Process ------------------------------------------------------------- Chrysler, the unprofitable unit of DaimlerChrysler AG, rolled out a reorganization of its vehicle-development process, the Friday edition of Dow Jones Newswires said. Under the new system, Chrysler hopes to use more common auto parts in its U.S. lineup and do more sharing with other units of its German parent. According to Chrysler head Dieter Zetsche, the goal is to temper the company's famous creativity with a disciplined side. The unit's top executives will form a product strategy team to completely assess whether there is consumer demand for a vehicle before it begins to be designed. They will also set up component teams to encourage the use of common parts in all of its Chrysler, Dodge and Jeep brands. REFUGIUM AG: Chief Hopes for Debt to Be Waived ---------------------------------------------- Chief executive Klaus Kuthe of Refugium said that if creditors' waived the company's debt, it would form a major step towards a new beginning for the insolvent retirement home operator, Financial Times reported on Thursday. Kuthe expects a decision to be made on the company's future by the end of July. Refugium receivables of about DM40 million could be dropped during the forthcoming insolvency proceedings. The future of the company depends on whether a financially strong partner can be found to restructure Refugium. ============= I R E L A N D ============= CHORUS: May Cut More Jobs ------------------------- Chorus may further announce 30 lay offs after making 30 voluntary redundancies, the Sunday Times reported. The debt-laden company, which offers phone, digital television and Internet access, employs 500 people. In May, the cable company broke the terms of its license by failing to roll out on time digital television services to homes in Naas, Maynooth, Swords and Malahide. This prompted telecom regulator Etain Doyle to threaten to remove its exclusive rights to broadcast. The Office of the Director of Telecommunications Regulation has expressed concern about the number of complaints made against cable operators, particularly Chorus. EIRCOM PLC: Recommends E-Island Bid ----------------------------------- Eircom has on Friday recommended e-Island consortium's increased bid for the telecommunications group's fixed-line business, the Financial Times reported. The e-Island bid, headed by Irish entrepreneur Denis O'Brien and backed by U.S. investment bank J.P. Morgan Chase & Co., comprises a cash offer of 1.36 euros for each share, valuing Eircom at 3 billion euros. E-Island has raised its offer four times from its previous bid of 1 euro a share. The Employee Share Ownership Trust, who had already backed earlier Valentia's offer of 1.27 euros a share, is not ready to work for O'Brien because it is not convinced that he can expand the business. ========= I T A L Y ========= A.C. FIORENTINA: Court Sets September 15 Deadline to Submit Books ----------------------------------------------------------------- The bankruptcy section of the Florence court in Italy has set the deadline on September 15 for Italian football club Fiorentina to submit its books, according to Il Sole 24 Ore in its July 12 edition. Presiding judge Antonio Maci said they want to establish whether the club is in a temporary crisis, or in an irreparable state of insolvency. Fiorentina was cleared to be included in the list of teams competing in the 2001/2002 Serie A championship. EPLANET SPA: Aims for Breakeven in 2004 --------------------------------------- ePlanet SpA aims to break even in terms of Earnings Before Interest, Taxes, Depreciation and Amortization from the third quarter of 2004 and to achieve a positive operating profit from the second quarter of 2005, Dow Jones Newswires reported Sunday. ePlanet shareholders MF also reported that the telecommunications and broadband company plans to clear all of its debts between the fourth quarter of this year and the first half of 2002. EPlanet, which was on the brink of receivership when it secured a cash injection from a group of investors, now plans a 101- million-euro recapitalization to get operations back on track. It posted a net loss of 45.5 million euros and an EBITDA loss of 30.16 million euros in 2000 for sales of 30.1 million euros. FREEDOMLAND-ITN: Degiovanni to Step Down From Company ----------------------------------------------------- Freedomland founder Virgilio Degiovanni is about to leave his managing director position as he is under investigation for alleged financial malpractice, the Financial Times reported on Friday. Meanwhile, the company's board of directors met to discuss the new business plan that includes splitting the company into the Internet, connection services for businesses and TV interests division. The Italian internet-TV has also announced that it is looking for a partner that can work with the company in relaunching the business. =================== L U X E M B O U R G =================== CLEARSTREAM: Names Roelants as New CEO -------------------------------------- Clearing and settlement house Clearstream International, according to Dow Jones Newswires' Friday report, has named Andre Roelants as its chief executive. Roelants had been interim chief executive since May 15 following the suspension of Andre Lussi, pending the completion of an investigation by the Luxembourg public prosecutor of money laundering and other allegations. No evidence has yet been brought forward in the money laundering and related investigations. In early May, regulators ordered the suspension of Lussi, together with colleagues Carlos Salvatori and Robert Massol, while they investigated allegations that the group set up thousands of secret accounts to help its banking clients launder money. ===================== N E T H E R L A N D S ===================== KPN NV: Denies Rumor Board Agrees to Belgacom Merger ---------------------------------------------------- Telecommunications company Royal KPN NV on Friday denied a report from Dutch newspaper Het Financieele Dagblad that its supervisory board has agreed to a merger with Belgian peer Belgacom SA. "This report is untrue and incorrectly gives the impression that concrete agreements have already been made and that the discussions are now only about the details," KPN said. There is no question yet of an advanced stage in the discussions with Belgacom and it is still early to be able to draw any sort of conclusions. ========= S P A I N ========= JAZZTEL PLC: Share Price Falls 25% ---------------------------------- A 25% fall in the share price of telecommunication company Jazztel PLC this month has put the company on the rocks, the Sunday edition of Dow Jones Newswires said. According to Jazztel Chief Financial Officer Miguel Salis, the issue isn't the company's share price performance, but of the whole technology, telecom and alternative carriers sector. "If you look at the company numbers, there's really no justification for this decline," a Madrid analyst said. "It's just a small stock, not very liquid, that's especially vulnerable to the sector-wide sell-off." =========== S W E D E N =========== LM ERICSSON: To Post Larger Second-Quarter Loss ----------------------------------------------- Telefon AB LM Ericsson will post on July 20 an even wider loss for the second quarter than it did in the first with 5 billion Swedish krona, Dow Jones Newswires reported on Friday. The telecommunication equipment maker said that its pretax results would not improve for the second quarter, and observers expect that the company will report that they slightly worsened. According analysts, Ericsson is expected to post a pretax loss of around 5.5 billion Swedish krona, and warn that business conditions for the rest of the year will remain extremely difficult. After the first-quarter loss, Ericsson announced a major restructuring program, including 12,000 job cuts, to cut 20 billion Swedish krona in annual operating expenses by next year. ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Presents Recovery Plans --------------------------------------- Chairman and chief executive Mario Corti said Swissair Group would continue to cut costs and sell assets to trim its 7.8 billion Swiss francs debt, according to the Wall Street Journal's Friday edition. The measures will focus on making the company's core units more efficient while reversing a costly strategy of buying stakes in small foreign carriers, thereby limiting the group's role in airlines outside Switzerland. To cut costs and save at least 215 million francs, the airline plans to eliminate overlap among its various units and find room for route sharing and further synergies between Swissair and Crossair. Swissair will also look for further opportunities to sell nonessential assets such as older or unnecessary aircraft, real estate and minority holdings. Over the next 18 months, the company expects to raise more than three billion francs from such divestments. The Swiss group has this year sold 900 million francs in assets, including aircraft, a minority stake in Austrian Airlines and the Swissotel hotel chain. The company also announced plans to swap some of its catering assets with the U.K.'s Compass Group, merge its information technology unit Atraxis with. The group is facing complex problems in the bankruptcy proceedings and pending sale of French subsidiary AOM/Air Liberte and a lawsuit filed by the Belgian government against Swissair's decision not to increase its 49% stake in state-owned Sabena airlines. Swissair also sought to lessen fears that the company's huge debt could push the group closer toward insolvency as it said it has enough cash and financial support to conduct its business as usual. It had secured a bridge loan of one billion francs. SWISSAIR GROUP: Urges Belgian Government to Withdraw Case --------------------------------------------------------- Swissair chairman Mario Corti confirmed that he was again negotiating with the Belgian government to withdraw the lawsuit they have filed against the group, the Friday edition of the Financial Times said. Conti also confirmed that his airline did not intend to increase to 85% its stake in Belgian airline Sabena. He announced that Swissair has received 1 billion Swiss francs from its creditor banks and is embarking on a cost-cutting program. Early this month, Sabena has joined Belgium's legal action against Swissair over the company's refusal to raise its stake in the Belgian airline to 85%. Sabena is demanding from Swissair $1.09 billion for not honoring a commitment to upgrade the Belgian airline's fleet. =========================== U N I T E D K I N G D O M =========================== BALTIMORE TECHNOLOGIES: Denies Takeover Rumors ---------------------------------------------- Internet security group Baltimore Technologies has denied it was in advanced takeover talks with US software group Computer Associates or any other company as it was focusing on a major restructuring of its operations, the Financial Times reported on Sunday. Last week technology licensing company Chantilley made a reverse takeover approach for Baltimore but rejected it and said it did not view the approach as a formal offer and did not expect it to lead to formal talks. The company's stock market valuation fell from a peak of 5.1 billion pounds to 360 million pounds. It has issued three profit warnings this year, and announced the resignation of chief executive Fran Rooney last week. BALTIMORE TECHNOLOGIES: May Face Administration or Takeover ----------------------------------------------------------- Baltimore Technologies now faces the possibilities of a takeover or administration, according to the Sunday edition of the Financial Times. Interim chief executive Paul Sanders has less than a month to restructure the Internet security group, which is now valued at only 150 million pounds and has a limited cash holding of 54 million pounds. Market analysts say the figures are not enough for the firm to regain profitability. BALTIMORE TECHNOLOGIES: Rises 30% After Receiving Takeover Bid -------------------------------------------------------------- Shares of Baltimore Technologies PLC boosted by almost 30% on Friday after the company received a possible takeover offer from Internet security company Chantilley Corp. Ltd., Dow Jones Newswires reported. It is the second time last week that investors have taken up the slack in Baltimore's shares, first buying when Chief Executive Officer Fran Rooney resigned. Baltimore said the Chantilley bid did not constitute an offer and that the approach is unlikely to result in a deal that the board could recommend to shareholders. BALTIMORE TECHNOLOGIES: U.S.-Based Software Giant in Takeover Bid ----------------------------------------------------------------- U.S.-based software giant Computer Associates, leading customer of Chantilly, is in advanced takeover talks with Baltimore Technologies, the Sunday Times reported. Last week, Chantilly suggested it would be interested in a merger with Baltimore. The Baltimore board rejected the all-paper offer. A second company, possibly Network Associates or Checkpoint, is also in talks with Baltimore. Both are leaders in the security- services market. Baltimore is undergoing a restructuring program to achieve significant cost efficiencies whilst enhancing overall business performance. This will include a reduction in headcount. DURLACHER CORPORATION: To Post Big Loss --------------------------------------- Durlacher Corp Plc, according to PrivateEquityOnline in its July 11 edition, will soon announce a big trading loss. The Internet investment firm blamed the difficult conditions in the technology markets for a substantial loss for the year ended June 30, 2001. Durlacher CEO Geoffrey Chamberlain told Reuters in a report that he could not predict when the company would return to profitability. The company lost 13.9 million pounds last year after generating a 2-million-pound profit in 1999. EQUITABLE LIFE: Offers 20% Increase to Some Members --------------------------------------------------- Troubled mutual insurer Equitable Life will offer some of its members a 20% increase in their funds next month as part of a proposed deal between policyholders who hold guaranteed annuity rate policies and the majority who do not, the Friday edition of the Financial Times said. However, it is not certain that the offer will be enough to attract the support of the 90,000 individuals with GAR policies and the 360,000 with non-GAR policies. Equitable's board will have to approve any compromise, cleared with the Financial Services Authority and by independent actuary Mike Arnold. The deal must win the support of the majority of both guaranteed and non-guaranteed policyholders. Then it will need a court approval. Equitable closed its business in December last year after losing a House of Lords case over its GAR liabilities of 1.5 billion pounds. It sold its operational assets to mortgage bank Halifax for an initial 500 million pounds. FUTURE NETWORK: Set to Cut 140 Jobs ----------------------------------- Magazine publisher Future Network Plc expected to axe around 140 jobs to help cut costs by approximately 8.5 million pounds, the Friday edition of Reuters said. The reorganization of Future Network, whose shares have steadily fallen over the last twelve months, will see it divide its British business into games, computing and entertainment divisions. Future Network has closed its loss-making German operations and has completed the sale of its Business 2.0 magazine to AOL Time Warner for an initial $68 million. GLOBAL TELESYSTEMS: Bondholders Okay Arrangement Scheme ------------------------------------------------------- Global TeleSystems, Inc. said that the holders of publicly-traded notes issued by its Global TeleSystems (Europe) Ltd. subsidiary, formerly known as Esprit Telecom Group plc, have approved Esprit Telecom's Scheme of Arrangement to restructure the terms of their notes. In a report dated July 13, Business Wire said that 100% of bondholder votes cast were in favor of the scheme. Final approval of the scheme by the High Court of England and Wales is expected in the coming weeks. In the agreement, the company's obligation to repay approximately $500 million of the debt will be exchanged for the holders' receiving a 90% ownership interest in a new company that will own Esprit Telecom as well as the other GTS subsidiaries providing principally voice services to businesses in Western Europe. GTS will own through a subsidiary the remaining 10% of the equity in the new company, and will hold warrants to acquire an additional 10% of the new company. The restructure of the Esprit Telecom bonds is consistent with GTS's overall program to recapitalize its balance sheet by eliminating or reducing its publicly-held debt obligations and preferred stock. Consistent with these plans, GTS also announced that its Global TeleSystems Europe B.V. subsidiary has elected not to make the cash interest payments due on July 15, 2001 on its 10.375% Senior Notes due 2009 and its 10.375% Senior Notes due 2006. The company is currently engaged in restructuring negotiations with representatives of the holders of these notes. The non- payment of cash interest on the bonds will not constitute an event of default unless interest is not paid by August 14. Deutsche Bank, Dresdner Bank and Bank of America, which provides financing to GTS' Global TeleSystems Europe Holdings B.V. subsidiary, have agreed to waive until July 31, 2001 any defaults under that subsidiary's credit facility caused by the failure to make these July 15 interest payments. GLOBAL TELESYSTEMS: Enters Into Debt for Equity Exchanges --------------------------------------------------------- Global TeleSystems, Inc. on Friday said it has entered into an agreement with a third party to exchange the third party's holding of $35.5 million aggregate principal amount of GTS's 5.75% Senior Subordinated Convertible Debentures due 2010 for shares of GTS common stock. Under the terms of the agreement, GTS will issue 8,165,000 shares of its common stock in exchange for the early discharge and cancellation of the converted debentures. GTS has also entered into another agreement with the same third party to exchange the third party's holding of 4,340,950 Depositary Shares, each representing 1/100 of a share of GTS's 7.25% Cumulative Convertible Preferred Stock for shares of GTS common stock. The terms of the exchange agreement will result in GTS issuing an additional 21,704,750 shares of its common stock in exchange for the cancellation of the Converted Depositary Shares. GTS will have approximately 5.7 million Depositary Shares outstanding after the completion of the transaction. HARNISCHFEGER: Emerges From Bankruptcy Protection ------------------------------------------------- "We are pleased to announce that Harnischfeger Industries, Inc. has emerged from bankruptcy court protection as a financially and operationally healthy company under a new name, Joy Global Inc.," John Nils Hanson, Chairman, President and Chief Executive Officer announced today. The company's emergence, effective immediately, reflects the terms of its amended plan of reorganization confirmed by the U.S. Bankruptcy Court on May 18, 2001. In accordance with the plan, the Company's new common stock and senior notes, as well as some cash, will be distributed to creditors with allowed claims around the end of July. The company's former stock has been canceled. The company's new common stock began trading on a "when issued" basis on May 25, 2001. "Regular trading" of Joy Global Inc. is expected to commence on the Nasdaq market under the symbol "JOYG" following the distribution of the shares. In conjunction with the emergence, the Company closed on a $350 million senior secured credit facility provided and arranged by Bankers Trust Company and Deutsche Banc Alex. Brown. This facility has been designed by Deutsche Banc Alex. Brown, Inc. to finance the company's global operations. Hanson said, "With our reorganization complete, we are focused on the mining markets and on utilizing our managerial strengths to build the long-term value of Joy Global for the benefit of all of our stakeholders -- shareholders, customers, suppliers, lenders and employees. We are committed to reinforcing our strengths to be the supplier of choice for our customers. At both our P&H Mining Equipment and Joy Mining Machinery divisions, we will leverage our superior product lines, strong customer relationships and global opportunities to build greater value. "The adoption of the Joy Global name is designed to facilitate the re-establishment of our relationship with the investment community and to do so in the simplest and most cost effective way possible. We will continue to go to market and place the highest premium on the brand identities of P&H Mining Equipment and Joy Mining Machinery, reflecting their many marketplace strengths. "As we move ahead, we are very well positioned to capitalize on the renewed interest in coal mining, and are flexible enough to adjust to developments in all of our markets. We continue to strengthen our product lines, customer services and manufacturing capabilities to provide the best value for our customers worldwide. "As part of the reorganization, we have a new Board of Directors. I will be joined on the board by six new independent directors selected by the official creditors committee through a formal process - President and Chief Executive Steven Gerard of Century Business Services, Inc., President and Chief Executive Officer Ken Johnsen of Geneva Steel Company, Senior Vice President James Klauser of Wisconsin Energy Corp., Furniture Brands International Chairman of the Executive Committee Richard Loynd, Houlihan Lokey Howard & Zukin Managing Director P. Eric Siegert, and Senior Vice President and Chief Financial Officer James Tate of Thermadyne Holdings Corp. We expect to benefit greatly from the breadth and scope of our new directors' experiences as we proceed to execute our business strategy." Joy Global Inc. is a worldwide leader in manufacturing, servicing and distributing equipment for surface mining through its P&H Mining Equipment division and underground mining through its Joy Mining Machinery division. (Harnischfeger Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., 609-392-0900) INDEPENDENT INSURANCE: PcW May Recover 10MM Pounds From Policy -------------------------------------------------------------- Liquidators of the collapsed Independent Insurance may try to recover up to 10 million pounds from an insurance policy that covers fraud and negligence by the company's directors, the Sunday Times reported. Mark Batten and Daniel Schwarzmann of PriceWaterhouseCoopers have read the policy and believe there are grounds for a claim. It has also emerged that PwC downloaded information and e-mails from Independent's computers dating six months ago. The computer used by founder and former chief executive Michael Bright was among those scanned and will be examined by the Serious Fraud Office. The liquidators have completed initial interviews with the staff and some directors of Independent. They will be questioned again before Bright is interviewed. The outcome of these interviews will determine whether legal action should be taken against the company's board, auditor KPMG and actuary Watson Wyatt. MILLENNIIUM DOME: Receives Acquisition Bid From Wellcome Trust -------------------------------------------------------------- Wellcome Trust, one of the world's leading medical charities, is in negotiations with the government to buy the Millennium Dome and transform it into a biomedical research center, according to the Sunday edition of BBC News. The Trust refused to confirm the reports, while the government said it is considering offers from a number of prospective buyers and no final decisions have been made. The bidding process for the Dome was reopened in February after the government removed Legacy as preferred bidder when it wants to turn the Dome into a hi-tech business park. Former Dome chief executive Pierre-Yves Gerbeau wanted to retain the Dome as an entertainment center during the day and a venue for night-time sporting and concert events. The Dome closed it doors to the public on New Year's Eve since it received only a little over half the predicted 12 million visitors. ************** 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 * * *