/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010802.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 Thursday, August 02, 2001, Vol. 2, No. 150 Headlines B E L G I U M LERNOUT & HAUSPIE: To Develop Break-Up Scenario XEIKON NV: Operating Loss Widens in Second Quarter D E N M A R K W.R. GRACE: Posts Second Quarter Earnings F R A N C E AIR LIBERTE: Employees Prepare for Redundancy Plan SYNCHRONY LOGISTIQUE: Continues Search for Buyer WARNACO INC.: Seeks Buyer For Lejaby G E R M A N Y BANKGESELLSCHAFT BERLIN: Board Approval Will Face Dissent BROKAT AG: Fitch Downgrades Rating to CC DAIMLERCHRYSLER AG: Merrill Lynch Downgrades Rating EM.TV: Shareholders Will Meet to Air Complaints MET@BOX AG: Faces Shareholders Compensation Claim MET@BOX AG: Increases Equity by 1MM Euros I R E L A N D EIRCOM PLC: Valentia Does Not Plan to Increase Bid I T A L Y A.C. FIORENTINA: Cecchi Gori Readies Sale of Football Club N E T H E R L A N D S AND INTERNATIONAL: Rescued From Payment Suspension N O R W A Y MJELLEM & KARLSEN: Shipyard Struggles With Losses P O L A N D ELEKTRIM SA: Phones Deal With Vivendi Delayed S P A I N SINTEL: Government and Unions to End Crisis U N I T E D K I N G D O M BOOKHAM TECHNOLOGY: Second Quarter Loss Widens to 44.6MM Pounds BRITISH TELECOM: Faces Pressure From Investors on Loop Bid CAMMELL LAIRD: Cuts More Shipyard Jobs CLAIMS DIRECT: Shareholders Cold on Founders' Offer DOLPHIN TELECOM: Owes Nokia Millions of Euros FRUIT OF THE LOOM: Reports Continued Improvement HARNISCHFEGER INDUSTRIES: Joy Global Distributes New Stock LASTMINUTE.COM: Diversifies Site Into 'Inflatables' RSL COM: Telecom Firm Enters Administration TEMPEST CONSULTANTS: Calls in Liquidators VERSAILLES GROUP: Ex-Executives Charged With Fraud W & J WHITEHEAD: Talks Threaten 640 Jobs - - - - - - - - ============= B E L G I U M ============= LERNOUT & HAUSPIE: To Develop Break-Up Scenario ----------------------------------------------- Speech technology company Lernout & Hauspie hopes to sell off the company in separate parts following the failure of Newco, the new structure to which L&H wanted to transfer its speech and language technology division, De Standaar & Financial Times in its July 31 edition said. An estimated $100m was required to make Newco viable, but only $30m was raised. L&H is now in talks with four to five parties about the sale of separate units, which the company hopes to save a few hundred jobs with the rescue plan. L&H will not make any further announcements on this attempt until August 10. XEIKON NV: Operating Loss Widens in Second Quarter -------------------------------------------------- Digital color printer manufacturer Xeikon has incurred operating losses of $10.4 million in the second quarter of this year, nearly 30 times higher than the $400,000 operating losses in the same period last year, De Financieel Ekonomische Tijd & Financial Times reported on Tuesday. Xeikon is looking for new investors as it could not compensate for the loss of important clients such as Xerox. Xeikon still expects to be out of the red by early next year. ============= D E N M A R K ============= W.R. GRACE: Posts Second Quarter Earnings ----------------------------------------- W. R. Grace & Co. on July 25 reported that its second quarter pre-tax income for 2001 from core operations was about even with the prior year at $58.1 million compared with $58.7 million in the second quarter of 2000, a significant improvement over the first quarter, which was off 28% compared to prior year. Sales totaled $450.3 million compared with $405.1 million in the prior year quarter, an 11.2% increase. Excluding currency translation impacts, the sales increase was 14.6%. The quarter was favorably impacted by revenue and earnings from acquisitions and strong demand for refining catalysts, with offsets from continued higher raw material costs and natural gas prices and the translation effects of a strong U.S. dollar. Productivity gains from Six Sigma and other programs dampened the effect of these higher cost factors. Second quarter net income was $23.0 million, or $0.35 per diluted share (EPS), compared with $34.6 million or $0.50 in the second quarter of 2000. The current quarter included net income effects of $4.3 million for Chapter 11 expenses and $5.0 million for added net interest expense compared to the prior year, a combined $0.14 impact on EPS. In April, Grace and 61 of its United States subsidiaries and affiliates, filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Grace's non-U.S. subsidiaries and certain of its U.S. subsidiaries were not a part of the filing. Grace, a leading global supplier of catalysts and silica products, specialty construction chemicals and building materials, and container products, has over 6,000 employees and operations in nearly 40 countries. =========== F R A N C E =========== AIR LIBERTE: Employees Prepare for Redundancy Plan -------------------------------------------------- Employees of AOM-Air Liberte are waiting with apprehension for news of a redundancy plan as the French company is faced with a period of radical restructuring, La Tribune & Financial Times in its July 31 edition said. The redundancy plan, expected to involve 1,853 job cuts out of a total workforce of 4,559, may offer employees an early retirement or a transfer to Air France, where a special unit has been set up. French transport minister Jean-Luc Gayssot insisted on July 27 that all available means be used to make sure that nobody gets sidelined. SYNCHRONY LOGISTIQUE: Continues Search for Buyer ------------------------------------------------ Synchrony Logistique has still not found a taker for the transport and logistics company that has been in receivership since April, Les Echos & Financial Times reported on Tuesday. The company's receiver has given potential candidates, which include logistics operator Mory, an additional month to accept offers for the partial takeover of assets. Synchrony Logistique continues to generate operating losses due to problems in organization. WARNACO INC.: Seeks Lejaby Buyer -------------------------------- Warnaco is looking for a buyer for its French lingerie subsidiary Lejaby, La Tribune & World Reporter in its July 30 edition said. Last month, there was a rumor that Belgian lingerie specialist Van de Velde could have been interested in the Warnaco subsidiary. There were also rumors that a buy out could be lead by Lejaby chief executive Jacques Macloughlin. The insolvent US textile group, which manufactures clothes for Calvin Klein and Ralph Lauren, bought Lejaby in 1996. ============= G E R M A N Y ============= BANKGESELLSCHAFT BERLIN: Board Approval Will Face Dissent --------------------------------------------------------- Formal approval of Bankgesellschaft Berlin AG's management and supervisory boards will be challenged at its shareholders' meeting on August 29, Dow Jones Newswires reported on Tuesday. Pressure group Schutzgemeinschaft der Kleinaktionaere, which represents the interests of small investors, said it has filed a countermotion rejecting approval of both boards, as well as countermotion rejecting the board's proposal to renew the company's contract with auditors PriceWaterhouseCoopers. Bankgesellschaft Berlin posted a net loss of 1.65 billion euros in 2000, compared with a net profit of 157 million euros in 1999. The bank attributed the loss to bad property loans and dealings in real-estate funds. BROKAT AG: Fitch Downgrades Rating to CC ---------------------------------------- International rating agency Fitch on Tuesday downgraded the Senior Unsecured rating of software company Brokat AG and its 125-million-euro Senior Unsecured notes due 2010 to 'CC' from CCC'. At the same time, the agency affirmed the Rating Watch Negative status. Fitch took this rating action following the announcement of worse than expected preliminary second quarter results for the three months ended June 2001, with the company reporting revenues of 28.0 million euros and EBITDASO (EBITDA plus non-cash stock option costs) of -40 million euros. At the same time, Brokat announced that it was taking an exceptional non-cash charge of 735 million euros to reflect the write-down of goodwill relating to the acquisitions of US companies Blaze Software and Gemstone Systems, both of which were acquired in 2000. Given Brokat's cash position of 41 million euros at the end of the second quarter of 2001, Fitch recognizes that without an injection of new capital before the end of September 2001, the company is in danger of exhausting its cash resources by that time. While Fitch understands that Brokat is in discussions with potential equity investors, the lack of visibility regarding the likelihood of such a transaction being completed leads the agency to take a cautious view of the situation. This uncertainty is exacerbated by the announcement last week that Brokat has appointed Dresdner Kleinwort Wasserstein Inc as its financial adviser to examine strategic options for a restructuring of the notes. This action follows the agency's decision to downgrade the notes from 'B-' to 'CCC' on 24 July 2001, which reflected Fitch's concerns over the announcement regarding the restructuring of the notes. DAIMLERCHRYSLER AG: Merrill Lynch Downgrades Rating --------------------------------------------------- U.S. investment bank Merrill Lynch has downgraded its medium-term rating for shares in DaimlerChrysler AG from neutral to reduce, Handelsblatt reported on Monday. The investment bank has downgraded the carmaker's shares on fears that the group's dividend payout for 2001 will be lower than that for 2000. Merrill Lynch also believes that DaimlerChrysler has become increasingly dependent on mass markets owing to its association with Japanese carmaker Mitsubishi Motors and its US-based Chrysler arm. EM.TV: Shareholders Will Meet to Air Complaints ----------------------------------------------- Shareholders of troubled media company EM.TV & Merchandising AG will meet in Munich to air a long list of complaints, including demands for many more details on how their company is doing, the Wall Street Journal reported yesterday. Shareholder-rights activist Klaus Schneider said that EM.TV reported its first-quarter results last week but it did not include a net-profit figure, comparative figures from the year- earlier quarter, or details on revenue from the company's various holdings. The July 26 news release said EM.TV suffered a pretax loss of 44 million marks on total revenue of 237 million marks. It didn't mention that the company had a net loss of 98.1 million marks. Key figures from the first quarter of 2000, a net income of 3.4 million marks on sales of 84.7 million marks, were likewise not included. Florian Demleitner of EM.TV's investor-relations department said the company did not provide comparative figures because the company did not include wholly owned unit Jim Henson Co., the creator of the Muppets characters, and Formula One auto-racing circuit in its first-quarter results last year. EM.TV also missed the deadline for submitting its quarterly earnings to Deutsche Boerse AG, which is currently reviewing how much to fine EM.TV. Earlier this year, it fined the company 50,000 euros for failing to report 2000 earnings within 90 days of the end of the year. MET@BOX AG: Faces Shareholders Compensation Claim ------------------------------------------------- The small shareholders association Schutzgemeinschaft der Kleinaktionaere (SdK) has filed with the Frankfurt district court a compensation claim against set-top box maker Metabox AG, Bersen Zeitung in its July 28 report said. SdK has also filed a claim against management board chairman Stefan Domeyer. Meanwhile, Metabox said it plans to increase capital stock by 1 million euros and issue 1 million shares at a price of 1 euro each to this end. Metabox AG, whose shares were suspended from trade on Monday, has filed for insolvency proceedings at the Hildesheim district court at the end of May due to insufficient liquidity. MET@BOX AG: Increases Equity by 1MM Euros ----------------------------------------- The board of directors and the executive board of set top-boxes producer Met@box AG has confirmed on Monday that its equity would be raised by 1 million euro in cash, against issuing 1 million new shares utilizing the authorized capital. The company's insolvency administrator is Michael Graaff. ============= I R E L A N D ============= EIRCOM PLC: Valentia Does Not Plan to Increase Bid -------------------------------------------------- The Valentia consortium, bidding for control of Eircom PLC, will not raise its offer for the company because it believes its offer is the only feasible one on the table and will ultimately win control of the Irish fixed-line telecommunications company, according to Dow Jones Newswires' Tuesday report. Valentia is offering 1.27 euros a share for Eircom, valuing the company at 2.9 billion euros, while e-Island has bid 1.36 euros a share at three billion euros. There has been speculation that Valentia would match, or even best, e-Island's offer by Friday's deadline. Valentia is willing to sit tight until August 13 as it believes e-Island will not garner the 80% shareholder support needed by Irish law to win the company. E-Island is led by Denis O'Brien and is backed by U.S. investment bank J.P. Morgan Chase & Co. and Boston-based Spectrum Equity Investors. Valentia is led by Irish businessman Tony O'Reilly and also includes Goldman Sachs, Providence Equity Partners, Warburg Pincus LLP, and Soros Private Equity. ========= I T A L Y ========= A.C. FIORENTINA: Cecchi Gori Readies Sale of Football Club ---------------------------------------------------------- Vittorio Cecchi Gori, who has stepped down as chairman of Fiorentina, is ready to sell the Italian football club, Il Sole 24 Ore & Financial Times reported on Tuesday. However, magistrates have asked that the company be put into temporary receivership before the sell off. The hearing will be held on August 16. Shareholders of Fiorentina have appointed Luciano Luna to take over Cecchi Gori. ===================== N E T H E R L A N D S ===================== AND INTERNATIONAL: Rescued From Payment Suspension -------------------------------------------------- Electronic publisher AND International Publishers has been rescued from suspension of payment, according to De Telegraaf & World Reporter's July 28 edition. The bondholders of the company approved the rescue plan by receiver Jeroen Princen. =========== N O R W A Y =========== MJELLEM & KARLSEN: Shipyard Struggles With Losses ------------------------------------------------- Mjellem & Karlsen has recorded losses of 202 million Norwegian krone, Dagens Naeringsliv & Financial Times July 31 edition said. The Norwegian shipyard has recorded total losses of 202 million Norwegian krone since 1995, with losses of 39 million Norwegian krone in the year 2000. Some of the losses are explained by the liquidation of shipping company Grenaa-Hundested, which resulted in Grenaa-Hundested not acquiring a jetliner boat it had ordered worth 256 million Norwegian krone. =========== P O L A N D =========== ELEKTRIM SA: Phones Deal With Vivendi Delayed --------------------------------------------- Polish Elektrim and Vivendi Universal failed to complete a deal that would give the French group control of Elektrim's telecom assets by a July 30 deadline, Reuters reported on Tuesday. The firms did not give a new deadline for the conclusion of the talks, but said that both parties are continuing intensive work to sign the final agreement as soon as it is possible. If completed, the $600 million cash and debt deal would settle a struggle over the fate of cellphone operator Polska Telefonia Cyfrowa (PTC) between Vivendi and rival Deutsche Telekom. Elektrim and Vivendi jointly own 51% of PTC, with the rest directly and indirectly controlled by Telekom. ========= S P A I N ========= SINTEL: Government and Unions to End Crisis ------------------------------------------- The Spanish government and unions are working to resolve the conflict at telecom installations company Sintel, El Pais & Financial Times reported on Tuesday. The government is defining the aspects of an agreement, which includes the transfer of half of Sintel's 1,800 workers to other companies. The government's offer to transfer Sintel's workers came after almost a year of conflict, the company having suspended payments in June 2000. According to the agreement, Sintel's former parent company Telefonica will transfer 900 workers to companies with which it has links. The remaining workers would take early retirement or voluntary redundancy. Meanwhile, the unions want to clarify the type of contracts that the workers will have at their new companies, how senior staff will be paid and when workers will receive the back pay owed to them. =========================== U N I T E D K I N G D O M =========================== BOOKHAM TECHNOLOGY: Second Quarter Loss Widens to 44.6MM Pounds --------------------------------------------------------------- Bookham Technology Plc, the UK optical component maker, said its second-quarter loss widened to 44.6 million pounds, or 35 pence a share, from 8.2 million pounds, or 7p, in the year-ago period. The loss for the quarter, according to a Bloomberg report on Tuesday, includes 31.2 million pounds to write off inventory and pay for job cuts. Reuters added that Bookham is cutting jobs and ramping up production of new components to offset falling sales of older products to Nortel, which accounted for 70% of its revenue. The company cut 30% of its employees to 720 employees on July 1, from 1,035 in mid-March, taking a 600,000-pound charge in the quarter. The company does not rule out further job reduction if it becomes necessary. BRITISH TELECOM: Faces Pressure From Investors on Loop Bid ---------------------------------------------------------- Two of British Telecom's top 10 shareholders are to urge it to rethink its rejection this week of an 8-billion-pound bid for its local telephone network by Earth Lease, a consortium of private equity investors. Leading shareholders, according to the Financial Times on Tuesday, believe the deal could offload a non-core business and cut the remaining debt by more than half. British Telecom dismissed the consortium's bid to buy the telecom group's telephone lines, and then lease it back to BT. There were questions over the price offered by Earth Lease. But shareholders said this should be the subject of negotiation. CAMMELL LAIRD: Cuts More Shipyard Jobs -------------------------------------- Receivers PricewaterhouseCooper at troubled shipbuilder Cammell Laird have announced a further lay-off of 83 employees at the Birkenhead site in Merseyside, BBC News reported on Tuesday. No redundancies have been announced at Cammell's yard on Tyneside, where 250 workers remain. However it now looks likely that only a handful of workers will be left at the two yards by the end of the week after work on three ships is completed. PricewaterhouseCooper will review labor requirements and more than 500 redundancies will possibly follow in all yards later this week, adding to the 700 employees who have gone since April. CLAIMS DIRECT: Shareholders Cold on Founders' Offer --------------------------------------------------- Colin Poole and Tony Sullman of personal-injury specialist Claims Direct said that 0.1% of shareholders had accepted their hostile offer of 10p a share, according to the Tuesday edition of the Financial Times. The founders said they had received acceptance of 270,700 shares for their offer to pay 11.1 million pounds for the shares they do not own. Other executive and non-executive directors of Claims Direct have rejected the offer, a 95% discount to Claims Direct's 180p flotation price last year, as too low. Some shareholders have pointed out that the offer totals little more than the 10.6-million-pound of net cash in the business at the year-end. Poole and Sullman have argued that the offer reflects Claims Direct's poor trading performance as well as uncertainty about the recoverability of after-the-event insurance. DOLPHIN TELECOM: Owes Nokia Millions of Euros --------------------------------------------- U.K.-based telecommunications company Dolphin Telecom, which is facing financial difficulties, owes Nokia Corp several tens of millions of euros. In a report dated July 31, AFX News said that with the order of 50 million sterling worth of Tetra radio telephone network equipment, several tens of million of euros in payments are outstanding. "Nokia has collateral for these payments, which consists of the equipment already delivered to Dolphin Telecom," Nokia Networks communications director Riita Maard said. Dolphin, which has reported a loss of US$325 million for the first quarter, has added it is looking for a partner. FRUIT OF THE LOOM: Reports Continued Improvement ------------------------------------------------ Fruit of the Loom, Ltd., one of the world's leading manufacturers and marketers of basic family apparel, reported its operating results for the second quarter significantly improved compared to the second quarter of 2000 as the company continued to reduce operating costs and focus its efforts on core profitable products. Operating earnings before interest and other expenses, excluding consolidation costs of $34.0 million, were $31.9 million in the second quarter of 2001, a $43.3 million improvement from a loss of $11.4 million in the second quarter of 2000. Operating earnings before interest and other expenses, excluding consolidation costs of $40.7 million, were $29.1 million in the first six months of 2001, an $88.5 million improvement from a loss of $59.4 million in the six-month period ended July 1, 2000. The improvement in operating earnings in both the second quarter and six-month periods reflects reductions in production costs and lower selling, general and administrative expenses. Excluding consolidation costs, selling, general and administrative expenses decreased $20.8 million to $84.7 million for the six-month period ended June 30, 2001 compared to the corresponding period of 2000. These cost improvements more than offset the impact of volume and price reductions. Consolidation costs aggregated $40.7 million in the six-month period ended June 30, 2001, of which $35.8 million were non-cash costs. Consolidation costs primarily relate to the closure of manufacturing facilities as a result of increased efficiencies, reduced capacity requirements and the Company's continuing focus on low-cost production. For the six months ended June 30, 2001, Fruit of the Loom reported an 8% decline in sales of $661.9 million compared to $823.0 million for the corresponding period in 2000. The lower sales volume was principally due to lower Activewear sales, which were affected by weakness in the overall Activewear market combined with competitively lower pricing. The company continued its leadership position in mass merchant sales of Men's and Boys' underwear as its market share increased by 1.0 share points to 44.9% in the twelve months ended May 2001 over the same period of the preceding year. Net operating cash flows before reorganization items improved $23.7 million to $7.1 million in the six-month period ended June 30, 2001. The company continues to focus on reducing inventories, achieving its lowest level in over eight years. Inventory at June 30, 2001 was $492.0 million, a reduction of $73.4 million from July 1, 2000. As of July 25, 2001, the borrowing availability under Fruit of the Loom's debtor-in-possession credit facility (DIP) was $260.9 million. During the first six months of the year, normally the seasonal peak for the Company's working capital needs, there were no borrowings under the revolver component of the DIP. In addition, the company's cash and cash equivalents decreased by $10.4 million which was approximately equal to the overall reduction in the company's indebtedness during the period. Management believes that the size of the DIP and cash and cash equivalents exceeding $100 million provide the Company with adequate financial flexibility and liquidity to pay its suppliers and meet customer expectations. Fruit of the Loom filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code on December 29, 1999 and is currently working through its restructuring in bankruptcy proceedings. On March 15, 2001 the company filed a Joint Plan of Reorganization with the United States Bankruptcy Court for the District of Delaware. Fruit of the Loom employs approximately 23,000 people in more than 50 locations worldwide. (Fruit of the Loom Bankruptcy News, Issue No. 35; Bankruptcy Creditors' Service, Inc., 609-392-0900) HARNISCHFEGER INDUSTRIES: Joy Global Distributes New Stock ---------------------------------------------------------- Joy Global Inc. on July 27 began distributing its new common stock following the completion of its reorganization on July 12, 2001. The initial distribution of 39,743,681 shares of common stock was made on Friday to holders of allowed pre-petition claims against Harnischfeger Industries, Inc., the company's name prior to completing its reorganization. The new shares will be under the symbol "JOYG" on the Nasdaq National Market. The initial distribution equates one share of Joy Global Inc. common stock to a $28.60 allowed claim and is based on approximately $1.43 billion of "current adjusted claims," including provisions for unresolved claims and approximately $1.14 billion in resolved claims. Future distributions of stock are expected to take place at six- month intervals as the remaining bankruptcy related claims against Harnischfeger Industries, Inc. are resolved over the next few years. The company estimates that, if such claims are resolved as it currently anticipates, "total projected claims" or the total amount of claims after all claims have been resolved would be approximately $1.20 billion. While this number has not changed significantly since it was included in the company's plan of reorganization in March of this year, given the uncertainties inherent in the claims resolution process, there can be no assurance that the remaining claims will be resolved for the amounts currently estimated by the company. The amount of stock distributed in future distributions is contingent on the resolution of such claims. A total of fifty million shares have been designated for ultimate distribution to creditors. The company's transfer agent, American Stock Transfer & Trust Company, is distributing the shares. Shares to be distributed on account of Harnischfeger Industries, Inc.'s $450 million of pre- petition public notes and $500 million pre-petition credit agreement will be distributed to the respective trustee and agent for further distribution to the participants in those facilities. Such subsequent distributions by the trustee and agent may delay receipt by participants in those facilities of their shares and may be net of fees charged by the trustee or agent under the terms of the respective indenture and credit agreement. The company also announced that over the next nine months, it plans to grant stock options and performance units for approximately four million shares of stock to its officers, employees and directors. The initial grant of approximately nine hundred thousand stock options to approximately 175 individuals occurred on July 16, 2001. The options were granted with a $13.76 exercise price, consistent with the valuation of the company prepared for its plan of reorganization. Joy Global also plans to grant a similar number of stock options and performance units on November 1, 2001, February 1, 2002 and May 1, 2002 with exercise prices of such options set at the then-current market prices. Its plan of reorganization authorizes the grant of up to 5,556,000 stock options, performance units and other stock-based awards. The company also indicated that it expects to distribute approximately $109 million of its 10.75% Senior Notes due 2006 within the next two weeks to holders of allowed claims against P&H Mining Equipment and Joy Mining Machinery and most of their domestic subsidiaries (defined in the plan of reorganization as the Note Group Debtors). 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. LASTMINUTE.COM: Diversifies Site Into 'Inflatables' --------------------------------------------------- Lastminute.com has unveiled a revamp of its site that introduces an adult section in its quest for profits, the July 31 edition of the Financial Times said. The online booking agent offers such delights as edible underwear, subscriptions to pornographic magazines, and inflatable husbands and wives. Market research consultancy Datamonitor said that diversifying into the soft end of the adult sector is definitely a good idea in order to attract a broad range of internet users as possible. Lastminute.com is still on target to reach operating profitability by March next year in the UK and France, with the rest of the company's operations scheduled to break even at the end of 2002. RSL COM: Telecom Firm Enters Administration ------------------------------------------- RSL COM UK Ltd has gone into administration, Reuters reported on Tuesday. PriceWaterhouseCoopers is seeking buyers for all parts of the telecom company. "The ongoing need for capital funding and debt service requirements had led to intense pressure on cash management and a realization that there is insufficient resource to maintain the growth requirements of the group," PwC said. The U.S. parent group RSL Communications Ltd began insolvency proceedings in March. TEMPEST CONSULTANTS: Calls in Liquidators ----------------------------------------- Financial market research company Tempest Consultants, according to the Tuesday edition of Reuters, has voluntarily called in liquidators to wind up the company, following its recent postponement of AIM IPO due to unfavorable stock market conditions. The company has already received several offers to buy it. Tempest employs 110 in Europe, U.S. and Asia, and plans to raise up to 8 million pounds through an initial public offering. The company has failed to find other sources of cash. It will hold a creditors meeting on August 13 in London. VERSAILLES GROUP: Ex-Executives Charged With Fraud -------------------------------------------------- Former chairman and chief executive Carl Cushnie and former finance director Frederick Clough of the collapsed trade finance group Versailles have been charged with fraudulent trading, the Financial Times reported on Monday. The two executives have been bailed to appear at Bow Street magistrates court on Friday. The Serious Fraud Office has charged Cushnie and Clough with fraudulent trading under section 458 of the 1985 Companies Act. This covers the carrying on of business with intent to defraud creditors, with a penalty of imprisonment, fines or both. The SFO has laid a further charge of aiding and abetting fraudulent trading against Lorraine Jones, Clough's personal assistant. Cushnie categorically denies the allegation and has repeatedly made it clear that he is one of the biggest victims of the fraud perpetrated upon the Versailles Group. Lawyers for Clough declined to comment. Versailles's receiver PriceWaterhouseCoopers concluded last year that the group had booked 69 million pounds of false transactions. The group was backed by 70 million pounds in loans from Barclays Bank, National Westminster Bank and Royal Bank of Scotland and by 23 million pounds invested by a group of wealthy individuals. W & J WHITEHEAD: Talks Threaten 640 Jobs ---------------------------------------- An MP has described the meeting with the receivers of woolen mill W and J Whitehead as depressing, as 640 jobs are at risk, according to BBC News' report yesterday. A spokesman for the company, which went into receivership last week, blamed the strong pound, the manufacturing recession in America and increasing imports. The receivers, Tendon Recovery, have said that so far, only one of the 30 UK-based prospective buyers had followed up an initial expression of interest. The factory's future will be determined by the end of August, BBC added. 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. Lyndsey Resnick, 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 * * *