/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010910.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 Monday, September 10, 2001, Vol. 2, No. 176 Headlines * B E L G I U M * SABENA SA: Pilots' Protest Disrupts Flights * F R A N C E * MOULINEX SA: Appliance Maker Nears Bankruptcy MOULINEX SA: Shares Suspended in Paris Bourse * G E R M A N Y * HORNITEX-WERKE: Begins Insolvency Proceedings KABEL MEDIA: BNP Paribas Plans to End Sponsorship ROLF DITTMEYER: To Decide Company's Future This Month * N E T H E R L A N D S * KPN NV: Moody's Downgrades Rating to Baa3 KPN NV: Admits Selling KPNQwest Stake * S W E D E N * ADCORE AB: Agilior Files Bankruptcy Petition ADCORE AB: To Raise 175MM Swedish Krona * U N I T E D K I N G D O M * CLAIMS DIRECT: Appoints Henderson as New CEO CLAIMS DIRECT: New Chief Set for Option Windfall COLT TELECOM: Buys Back Own Bonds COTESWORTH & CO: Insurer Collapses After Failing to Raise Fund GLOBAL TELESYSTEMS: Banks Agree to Extend Waiver LASTMINUTE.COM: Expects to Break Even in 2002 MARCONI PLC: Payoffs Anger Investors MARCONI PLC: Shares Dive Over Downgrade Review MARCONI PLC: Takes Legal Advice Re 3-BB-Euro Debt Facility POLAROID CORPORATION: Confirms Cut in Health Benefits ============= B E L G I U M ============= SABENA SA: Pilots' Protest Disrupts Flights ------------------------------------------- Nearly a third of Belgium airline Sabena's European flights were disrupted on Thursday as pilots belonging to the Belgian Cockpit Association staged a 24-hour walk-out in protest on a restructuring plan that will result in 1,400 job cuts, including those of 200 pilots. According to the BBC News' September 6 edition, pilots have offered to reduce their working hours to help cut costs and avoid forced redundancies. Sabena said the restructuring plan is needed to bring the airline back into profit by 2005, and that the cutbacks were agreed by the airline's main shareholders, Swissair and the Belgian government. The latest strike action follows a two-day strike by ground crew last month. =========== F R A N C E =========== MOULINEX SA: Appliance Maker Nears Bankruptcy --------------------------------------------- Union representatives said that Moulinex Chairman Patrick Puy told them that the domestic-appliance maker might file for, the September 6 edition of Dow Jones Newswires reported. "Puy told us that there is a strong likelihood of bankruptcy," Confederation Francaise Democratique du Travairepresentative representative Marie-Gisele Chevalier said. Moulinex has been plagued by overcapacity and a debt of 818 million euros. The company is struggling to push through a restructuring plan that calls for the closure of six facilities in Europe and the layoff of 4,000 jobs, or 19% of its workforce. Earlier, French Industry Minister Christian Pierret said the government was ready to give financial incentives to companies who would hire workers hit by Moulinex's cutbacks. MOULINEX SA: Shares Suspended in Paris Bourse --------------------------------------------- Shares in French domestic-appliance maker Moulinex SA were suspended in late trading on the Paris Bourse on Thursday, pending the release of a company statement, the September 6 edition of Dow Jones Newswires said. Moulinex has suspended a meeting with employee representatives to allow management more time to gather details on how the restructuring and job-cutting plan would be financed. The announcement followed a report in Thursday's edition of French daily Le Monde that Moulinex is seriously considering filing for insolvency because creditors are reluctant to finance the costly restructuring plan. Italian group Elettro Finanziaria SA acquired a 74% stake in Moulinex late last year and merged the company with its own home appliance unit Brandt. Since then, Elettro Finanziaria has struggled to turn around Moulinex, which has been in the red since 1998. ============= G E R M A N Y ============= HORNITEX-WERKE: Begins Insolvency Proceedings --------------------------------------------- Wood products manufacturer Hornitex-Werke Gebr Kuennemeyer GmbH & Co KG has been undergoing insolvency proceedings since September 1, the Frankfurter Allgemeine Zeitung's September 4 edition said. The group, which employs around 2,700 people in Germany, last generated turnover of 875 million deutsche marks. The company's debts are thought to total more than 750 million deutsche marks. KABEL MEDIA: BNP Paribas Plans to End Sponsorship ------------------------------------------------- BNP Paribas bank, one of Kabel New Media AG's designated sponsors, plans to end its sponsorship of the Hamburg-based Web consultants as of September 30, the Wall Street Journal reported on Thursday. Under the rules of the Neuer Markt, Germany's growth segment, companies are required to have two designated sponsors. Kabel New Media started insolvency proceedings on September 1. Bankruptcy proceedings were also initiated on the same day for its Kabel New Media Hamburg GmbH, Kabel New Media Berlin GmbH, Kabel New Media Munchen GmbH, Kabel New Media Bonn GmbH and Kabel New Media Friedrichshafen GmbH units. Earlier, advertising agency BBDO confirmed it plans to take over Kabel New Media's Cologne and Hamburg locations, including the 45 Kabel employees, as well as their customers. ROLF DITTMEYER: To Decide Company's Future This Month ----------------------------------------------------- Lawyer Klaus Kloeker said that the future of insolvent German orange juice producer Rolf H Dittmeyer KG should be decided this month, according to the September 5 edition of Frankfurter Allgemeine Zeitung. Further details over talks to sell Dittmeyer were not given, but three weeks ago, some seven or eight companies, including Berentzen and Beckers Bester, were said to be interested. Dittmeyer, known for its Valensina brand, filed for insolvency at the end of July. ===================== N E T H E R L A N D S ===================== KPN NV: Moody's Downgrades Rating to Baa3 ----------------------------------------- Moody's Investors Service has on Thursday downgraded the Baa2 senior unsecured debt ratings of Koninklijke KPN NV's to Baa3 and the subordinated long-term debt ratings to Ba1 from Baa3, leaving the ratings on review for a possible downgrade. The rating action follows the announcement that the possible merger with Belgian rival Belgacom Societe Anonyme de Droit Public will not occur. The downgrade reflects the expectation that KPN will not now be able to implement debt reduction. Earlier, credit ratings agency Standard & Poor's said that ratings of KPN remain on CreditWatch with negative implications. Koninklijke KPN NV, headquartered in the Hague, Netherlands, is the leading telecommunications company in the Netherlands. It supplies the whole range of telecommunications and Information and Communication Technology services. KPN NV: Admits Selling KPNQwest Stake ------------------------------------- Financially troubled Dutch telecommunications company KPN NV is no longer ruling out selling its 44% stake in KPNQwest NV, according to Dow Jones Newswires' Thursday report. The move came as shares of KPNQwest tumbled almost 30% in Thursday on worries that KPN may be prompted into selling its holding in KPQNWest to help cut its debt. Before KPN issued its first half results, the company has consistently said it would not sell their fixed-line network, including its KPNQwest stake because it is considered one of the company's core activities. =========== S W E D E N =========== ADCORE AB: Agilior Files Bankruptcy Petition -------------------------------------------- Agilior S.A., controlled by Peter Nordstrom, Bjornar Jensen and others, has filed a bankruptcy petition against Adcore AB for alleged receivables in the Swedish Internet consultancy firm. Adcore in a September 5 statement has contested these receivables, which will be subject to an arbitration process Agilior et al. initiated at the Stockholm Chamber of Commerce Arbitration Institute. Against this background, the bankruptcy petition is without foundation, and if anything, would appear to be a negotiation gambit in the current dispute, Adcore said. In such circumstances, a corporation may only be declared bankrupt where receivables that are due have not been paid despite demands. However, in this case, the cited receivables cannot be considered due because they are subject to dispute. For more information on the issue, one may contact Adcore's CEO Ole Oftedal at telephone number +46 (0) 70 592 7599, or at ole.oftedal@adcore.com ADCORE AB: To Raise 175MM Swedish Krona --------------------------------------- Internet and information technology consultant Adcore will raise 175 million Swedish krona through a share issue, Dagens Industri/FT Information in its September 6 edition said. The move comes after Adcore recorded losses of 1.9 billion Swedish krona in the first half of 2001, of which 1.7 billion Swedish krona was generated by the closing down of international operations. See http://bankrupt.com/misc/adcore1.pdffor the company's financial report. Adcore CEO Ole Oftedal is convinced that the company will succeed in raising the capital. He also stated that 60 million Swedish krona of the share issue has already been guaranteed. =========================== U N I T E D K I N G D O M =========================== CLAIMS DIRECT: Appoints Henderson as New CEO -------------------------------------------- Claims Direct has appointed Ronnie Henderson as the new chief executive of the troubled compensation firm, alongside the resignation of Claims Direct managing director Paul Doona, the Daily Telegraph reported on Friday. The new chief said he was pleased to have the chance to help Simon Ware-Lane, who bought a 29.9% stake of the company from Claim Direct's founder Tony Sullman and former director Colin Poole. Henderson was a former chairman and managing director of Premier Asset Management. He also held executive positions at Skandia Life and Target Trust Group, and is currently chairman of start- up business I-love-you.com. Henderson has 30 years' insurance industry experience. CLAIMS DIRECT: New Chief Set for Option Windfall ------------------------------------------------ New Claims Direct chief executive Ronnie Henderson has been given options over 5 million company shares if he succeeds in turning the company around, the Financial Times in its September 6 edition said. "My most important challenge is to return this company to profit and stop it losing money," Henderson said. The new chief, who is reviewing the company's cost base and business model, says the company's 180 claims managers may get the opportunity to exit the business or change their jobs. He is also looking at a merger with rival business Claimline and is optimistic the business can be turned around by early next year. Claims Direct has issued three profit warnings and is facing a 16.5-million-pound lawsuit from disgruntled franchise managers as well as an inquiry from the Department of Trade and Industry. COLT TELECOM: Buys Back Own Bonds --------------------------------- Colt Telecom, a leading provider of high bandwidth data, voice and advanced telecommunication services to business and governmental customers in Europe, has bought back 115 million of its bonds at just 59% of their face value, the September 4 edition of Daily Mail said. Colt currently has only enough cash to fund its investments for 12 months. After that, the cash-strapped company will have to raise at least 600 million to survive through the next two years. The group, which currently has operations in 27 European cities in eleven countries, is believed to be in negotiations with banks to raise 400 millions. See http://bankrupt.com/misc/colttelecom.pdffor Colt Telecom's second-quarter results. COTESWORTH & CO: Insurer Collapses After Failing to Raise Fund -------------------------------------------------------------- Cotesworth & Co has placed its two remaining syndicates into run- off after it failed to raise funds for next year, the Daily Telegraph reported on Friday. The insurer will write no new business and its 80 workforce in the city's Gracechurch Street will be reduced to a core staff to oversee the winding down of business. The closure comes six months after Cotesworth's parent company HIH Australia, which provided 90% of its capital, went into provisional liquidation in March. Earlier this year, Cotesworth merged its four syndicates into two. When it lost HIH's financial support, it found it impossible to raise sufficient funds for next year. GLOBAL TELESYSTEMS: Banks Agree to Extend Waiver ------------------------------------------------ Global TeleSystems Europe Holdings B.V. creditors Deutsche Bank, Dresdner Bank and Bank of America have agreed to extend until September 17 the waiver of any defaults under their facility caused by GTS's election to not make interest payments on GTS Europe's debt while the company works toward a debt restructuring plan with bondholders. According to M2 Presswire's September 5 edition, GTS and the Bank Group continue their discussions to replace the current financing agreement with a longer-term financing facility. LASTMINUTE.COM: Expects to Break Even in 2002 --------------------------------------------- Chairman Allan Leighton of online travel agent and retailer Lastminute.com said on Thursday the group's UK and French businesses would reach profitability in nine months time as the group reported rising third-quarter losses, according to the September 6 edition of the Financial Times. "Lastminute.com continues to improve on all of the retail basics. Costs, margins, conversion rates and cashflow continue to move ahead in a period traditionally quiet for sales," Leighton said. In the three months to June 30, Lastminute recorded a pre-tax loss of 12.9 million pounds, compared with a 9.3-million-pound loss in the same period last year, and 14.3 million pounds in the preceding quarter. MARCONI PLC: Payoffs Anger Investors ------------------------------------ Angry shareholders are urging Marconi to consult lawyers to avoid paying large pay-offs to ousted directors, the Financial Times reported on Thursday. The move comes on news that Marconi will pay Lord Simpson, the company's former chief executive, approximately 1 million pounds. Although the payoff has not been finalized yet, his employment contract entitles him to receive approximately 1 million pounds. Sir Roger could receive up to 300,000 pounds. The Association of British Insurers, which represents large institutional investors, said, "In principle we don't think that companies should renege on contracts, but these are exceptional circumstances and Marconi should certainly be taking legal advice." Chairman Sir Roger Hurn and chief executive Lord Simpson were forced out of the company on Tuesday on warning that losses could reach 5 billion pounds this year and that Marconi would further axe 2,000 jobs. MARCONI PLC: Shares Dive Over Downgrade Review ---------------------------------------------- Marconi's shares fell 24% at 29p, after credit-rating agency Standard & Poor's downgraded the telecoms equipment maker's long- term debt by two notches to junk status at BB and warned that the company's debts could be worse than expected, the Daily Telegraph reported on Friday. The agency's action follows Marconi's profits warning on Tuesday, its second in two months, in which the company also admitted that its debts had ballooned from 3.2 billion pounds to 4.4 billion pounds in the five months to the end of August. The latest tumble makes it virtually certain that the manufacturer will fall out of the FTSE-100 for the first time. Earlier, Marconi's finance director Steve Hare said that the company intended to reduce debt to between 2.7 billion and 3.2 billion pounds by the end of its financial year on March 31. City analysts are now divided over whether the company will meet its debt reduction targets. MARCONI PLC: Takes Legal Advice Re 3-BB-Euro Debt Facility ---------------------------------------------------------- Troubled telecoms equipment company Marconi had taken legal advice to ensure that its banks cannot break a promise on an agreement struck two months before its July profits warning to give it access to a new 3-billion-pound debt facility, the Financial Times in its September 6 edition said. Finance director Steve Hare said he is certain the banks, led by Barclays and HSBC, will attempt to renegotiate the facility. So far, none of the 14 banks that signed up to the debt facility in May have approached Marconi to try to renegotiate the terms. With the facility, negotiated by former deputy chief executive John Mayo, Marconi can effectively draw on the money whatever its financial performance. POLAROID CORPORATION: Confirms Cut in Health Benefits ----------------------------------------------------- Vice president for restructuring Paul Lambert has confirmed that health benefits of the employees and retirees of troubled Polaroid Corp. would be cut beginning October 1, the Boston Globe reported on Thursday. In the past, the photographic giant has paid 80% of medical plan costs, but that figure will be reduced to around 50%, but could go as low as 20%. Polaroid, the biggest maker of instant cameras and film, is working hard to avoid filing for bankruptcy, and hopes the move will save it around $20 million a year. *********** 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. Lourdes Reyes, 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 * * *