/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010920.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, September 20, 2001, Vol. 2, No. 184 Headlines * B E L G I U M * SABENA SA: May Face Bankruptcy UBIZEN NV: In Reselling Deal With Ascure * C Z E C H R E P U B L I C * MASOKOMBINAT KLATOVY: Attracts Eight Companies * F I N L A N D * SONERA CORP.: Awaits Takeover Decision From Telia * F R A N C E * MOULINEX SA: To Hold Works Council Meeting * G E R M A N Y * BAYER AG: To Cut Jobs in U.K., Ireland BREMER VULKAN: Former Managers May Pay Millions DAIMLERCHRYSLER: Commission to Fine Company for Market Violations DAIMLERCHRYSLER: Sees Alliance With Fiat IG FARBEN: To Be Dissolved by 2003 INTERSHOP COMMUNICATIONS: Opens Benelux Sales Offices REFUGIUM AG: Creditors Okay Immediate Closure * I T A L Y * ALITALIA-LINEE: Sees More Losses, Layoffs * N O R W A Y * ENITEL ASA: Continues Trading With Nord Pool ENITEL ASA: Telia Interested in Enitel * S P A I N * IBERIA SA: Faces Losses in Wake of US Attacks * S W I T Z E R L A N D * SWISSAIR GROUP: Economics Minister Hints at State Aid SWISSAIR GROUP: Moody's Downgrades Rating to B2 SWISSAIR GROUP: Spokesman Says Company Won't Go Bankrupt SWISSAIR GROUP: To Continue Balair Operations With Hotelplan * U N I T E D K I N G D O M * BRITISH TELECOM: Credit Ratings Agencies Assign Ratings BRITISH TELECOM: Openworld Will Focus on Access BRITISH TELECOM: Plans Budget Cutbacks EQUITABLE LIFE: Gets Conflicting Opinions on Mis-Selling Case MARCONI PLC: Banks Maintain Support for Marconi MARCONI PLC: Shares Tumble on Debt Fears WILLIAM BAIRD: Delays Interim Dividend ============= B E L G I U M ============= SABENA SA: May Face Bankruptcy ------------------------------ Sabena Chairman Fred Chaffart has warned that the Belgian national airline could face bankruptcy because of heavy losses after the September 11 terrorist attacks in the U.S. The Wall Street Journal reported on Tuesday that Sabena lost one million euros a day last week because of cancellation of 24 trans-Atlantic flights after the attacks on New York and Washington. Two others returned to Brussels and four were rerouted to Canada. Chaffart added the airline is also at risk because it has failed to reach an agreement with the unions on a job-cutting plan. The airline has been negotiating with its unions to eliminate 1,421 jobs as well as some routes and non-airline businesses. UBIZEN NV: In Reselling Deal With Ascure ---------------------------------------- Ubizen, a global e-Security solutions provider, has signed a reselling agreement with Ascure to offer OnlineGuardianr in its portfolio of IT security solutions. OnlineGuardian is Ubizen's flagship managed security solution that currently manages and monitors over 2,000 enterprise security devices, in 35 locations worldwide. Ubizen's OnlineGuardian global capability is supported by a dedicated team of security analysts, who proactively monitor and manage infrastructure and application devices 24x7. The company closed its offices in Denmark and Hong Kong to ensure positive earnings before interest, taxes, depreciation and amortization by December 2001. =========================== C Z E C H R E P U B L I C =========================== MASOKOMBINAT KLATOVY: Attracts Eight Companies ---------------------------------------------- Eight Czech companies have expresses serious interest in bankrupt meat processor Masokombinat Klatovy, the Czech News Agency & World Reporter in its September 17 edition said, citing bankruptcy assets administrator Luda Sabatova. Masokombinat was declared bankrupt since November of last year. It had to suspend production due to a critical financial situation, and most of the staff had been sent on a two-week forced leave with 70% of their wage. A total of 338 creditors originally registered Kc296 million worth of claims. The Regional Court in Plzen acknowledged only the claims of 25 creditors worth Kc126 million. ============= F I N L A N D ============= SONERA CORP.: Awaits Takeover Decision From Telia ------------------------------------------------- Telia AB chief executive Marianne Nivert said the telecommunications group is not yet interested in taking over Finland's Sonera Corp., according to the Tuesday edition of Dow Jones Newswires. Telia held talks about buying Sonera, an international forerunner in mobile communications and mobile-based services and applications, but Nivert says the company has to take steps to clean up its portfolio before Telia would be interested. Sonera recently sold millions of its shares, including that of Deutsche Telekom AG, to reduce company debt. =========== F R A N C E =========== MOULINEX SA: To Hold Works Council Meeting ------------------------------------------ A new works council meeting will be held at Moulinex Brandt to expand on the company's current financial situation, following its filing for bankruptcy protection on September 7, the Tuesday edition of Le Figaro/FT Information said. Legal administrators have warned the delegates that such meetings could take place at any given moment. Earlier, suppliers have stopped their deliveries to Moulinex's subsidiary, the Brandt Cooking factory in Loiret City, which lead to an almost general stopping of its production lines. ============= G E R M A N Y ============= BAYER AG: To Cut Jobs in U.K., Ireland -------------------------------------- Bayer AG, Germany's third-largest drugmaker, will cut 150 pharmaceutical jobs in the U.K. and Ireland by the end of the year, Bloomberg reported on Tuesday. According to company spokesman Guenter Forneck, a significant portion of the redundancy will be in health care. The company is examining all options for its pharmaceutical business after withdrawing its anti-cholesterol drug Baycol in August. BREMER VULKAN: Former Managers May Pay Millions ----------------------------------------------- Four former board members of the German shipbuilding group Bremer Vulkan AG could pay DM9.7 million each for the company's insolvency, Frankfurter Allgemeine Zeitung/FT Information reported on Tuesday. The names of the board members were not disclosed. The German federal court ruled that the managers failed in their duty to use the DM687 million public subsidies exclusively for the privatized Wismar shipyard MTW Schiffswerft. However, the board of management introduced the money into the group's cash management system, where it was spent to save Bremer Vulkan from collapse. DAIMLERCHRYSLER: Commission to Fine Company for Market Violations ----------------------------------------------------------------- German automaker DaimlerChrysler AG will probably be fined by the European Commission's antitrust authorities for violating internal-market rules over a number of years, the Wall Street Journal reported on Tuesday. The infractions included imposing limits on deliveries, demanding down payments from buyers not residing in Germany and dictating prices for dealers to prevent price discounts. European commissioner Mario Monti, responsible for antitrust matters, will rule on the matter on October 10 and antitrust experts expect fines to run into the millions of euros. DaimlerChrysler will appeal if fines are levied, the report added. DAIMLERCHRYSLER: Sees Alliance With Fiat ---------------------------------------- DaimlerChrysler is in talks regarding a joint venture between its airplane engine unit MTU with Fiat Avio, Dow Jones Newswires reported on Tuesday. Results from the negotiations are expected in one to two months. The news agency added that there has been no plan to sell the unit, as speculated recently in the German press. IG FARBEN: To Be Dissolved by 2003 ---------------------------------- IG Farben, the German company that made the Zyklon-B gas used in the Nazi death camps, has announced it will be dissolved by 2003, according to the Tuesday edition of BBC News. The company's lawyers blame legal disputes with former slave workers for the dissolution of the company and the distribution of its assets to the victims. Chief liquidator Otto Bernhardt said that IG Farben has found a possible buyer for its property portfolio, which makes up the bulk of its remaining DM21 million of assets. IG Farben, which went into liquidation in 1952, has been heavily criticized for not paying any compensation to former Nazi slave laborers. INTERSHOP COMMUNICATIONS: Opens Benelux Sales Offices ----------------------------------------------------- E-commerce software company Intershop Communications AG has opened sales offices in the Benelux region last week, the Dow Jones Newswires Tuesday edition said. Intershop said it hopes the offices, run by its partner VRC Netshopping BV, will help increase revenues in Brussels and Amsterdam. The company earlier relocated some overseas positions back to Germany after it posted a profit warning in January, reshuffled the US operation's management, and initiated a drive to boost sales through third-party channels. REFUGIUM AG: Creditors Okay Immediate Closure --------------------------------------------- The creditors of Refugium Holding AG have approved a proposal by the insolvency administrator to shut its operations, the Tuesday edition of Dow Jones Newswires said. Refugium, which manages retirement homes, will be dissolved with immediate effect. Earlier, Pako Immobilien AG announced that it is not willing to support efforts to keep the company together and in operation. Pako owns 27 of the 57 homes run by Refugium. ========= I T A L Y ========= ALITALIA-LINEE: Sees More Losses, Layoffs ----------------------------------------- Alitalia SpA could have about ITL300 billion more losses and between 3,000 and 4,000 layoffs this year as a result of the attacks last week on the U.S., Dow Jones Newswires reported on Tuesday. Italy's national airline will present on Friday the first draft of a plan of exceptional measures it will implement in the wake of the attacks, the news agency added. Earlier, Alitalia reported a first-half net loss of ITL503 billion, compared with a net loss of ITL352 billion in the same period last year. The airline blamed its unfavorable results on the slowdown in the world economy, political crisis in the Middle East, and consistently elevated petrol prices. =========== N O R W A Y =========== ENITEL ASA: Continues Trading With Nord Pool -------------------------------------------- Enitel will continue trading with Nordic power exchange Nord Pool despite the telecommunications provider's decision on Monday to file for bankruptcy, Dow Jones Newswires' September 18 edition said. Enitel provides Nord Pool with data and telephone network services, including its electronic trading system, e-mail and Internet services, and the exchange's statistics database. The exchange is seeking alternative telecommunications providers in the event Enitel's services are disrupted after the September 22 expiry of the guarantee period from Norway's Ministry of Transport and Communications. ENITEL ASA: Telia Interested in Enitel -------------------------------------- Reports say that Marianne Nivert, head of Swedish telecommunications company Telia, is ready to launch a takeover bid for the Norwegian supplier of telecoms and data services Enitel, the Tuesday edition of Dagens Naeringsliv/FT Information said. Telia and Danish competitor Tele Danmark were rumored to be interested in acquiring Enitel. It is believed that Telia held talks with Enitel's debt settlement committee, which is discussing several alternatives in order to save the company from insolvency. ========= S P A I N ========= IBERIA SA: Faces Losses in Wake of US Attacks --------------------------------------------- Iberia SA, Spain's largest airline, has yet to quantify its financial losses in the wake of the terrorist attacks in the U.S. last week, Dow Jones Newswires reported on Tuesday. A company spokeswoman said that a number of reservations and the volume of traffic have fallen since the attacks, affecting around 10,000 Iberia passengers. Spanish state-owned news agency EFE reported that the Iberia was scheduled to have had 12 flights to the U.S. between September 11 and 14, and that its losses were in the hundreds of millions of pesetas. The Spanish airline reported a first-quarter net loss of 65.2 million euros against 47.9 million euros in 2000. ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Economics Minister Hints at State Aid ----------------------------------------------------- Swiss economics minister Pascal Couchepin hinted at the possibility of a state financial aid to Swissair Group AG amid the aviation industry's woes after the terrorist strikes in the U.S., Dow Jones Newswires reported on Tuesday. "If the U.S. is the first country to officially support its (airline) companies, we probably can't sit still and do nothing," Couchepin said. Finance ministry spokesman Hugo Schittenhelm earlier said the government would neither consider providing state financial aid nor raise or lower its stake in the Swiss aviation group. SWISSAIR GROUP: Moody's Downgrades Rating to B2 ----------------------------------------------- Moody's Investors Service on Tuesday downgraded the long-term issuer rating of Zurich-based aviation group Swissair Group to B2 from B1. The rating agency continues the review for possible further downgrade. The action reflects the expectation of deteriorating values for air traffic related assets as a result of the lower international air travel following the resurgence of terrorist activity and a generally depressed economic climate, and likely financial constraints for industry buyers. Moody's believes that the company's plan for debt reduction will be more difficult to achieve due to the recent plane hijackings and general depressed economic climate in Europe and the USA. The reduced air travel volumes are likely to result in a reluctance to invest in aviation assets such as aircraft or aviation related businesses, and thereby lowering the market value of such assets. Swissair Group is a diversified aviation group with operations in airline, aircraft maintenance, ground handling, catering, airport retailing, facility management and IT solutions. The group recorded a net loss of CHF234 million francs (see http://bankrupt.com/misc/swissair1.pdffor the group's consolidated income statement) in the first half of 2001. SWISSAIR GROUP: Spokesman Says Company Won't Go Bankrupt -------------------------------------------------------- "We won't go bankrupt," said Swissair head of corporate communications, Rainer Meier, although the Swiss aviation company is still analyzing the effects of the terrorist attack in the U.S. on its balance sheet. Dow Jones Newswires reported on Tuesday that Swissair Group has enough liquidity and does not have any intention of using the CHF1-billion-credit facility it has through a consortium of banks including Credit Suisse First Boston, Deutsche Bank and Citibank. Meier declined to comment on losses or possible job cuts arising from the last week's attacks. He also decline to comment on the possibility of a capital write-down that involves a reduction and then a restructuring of capital stock, followed by a capital increase through the issue of new shares. SWISSAIR GROUP: To Continue Balair Operations With Hotelplan ------------------------------------------------------------ Swissair Group AG said Tuesday that it would partner with its main client Hotelplan AG to continue to operate its charter airline subsidiary Balair. Under the new agreement, Hotelplan will remain Balair's contractual partner, with on May 1, 2002, and will be responsible for commercial and all flight planning activities, while Balair is responsible for flight operations. A new chief executive of Balair will be appointed to realign Balair's cost structures to current market conditions and negotiate new contracts of employment with the Balair pilot. Swissair Chief Executive Beat Schaer currently heads Balair. =========================== U N I T E D K I N G D O M =========================== BRITISH TELECOM: Credit Ratings Agencies Assign Ratings ------------------------------------------------------- Credit ratings agencies Moody's Investors Service and Standard & Poor's have rated MMO2, British Telecommunication's wireless arm to be spun off in November, just above junk status, the Tuesday edition of the Financial Times said. Standard & Poor's has assigned a "BBB-" rating to the company and its proposed 3.5-billion-pound senior unsecured bank facility, just one notch above junk status, while Moody's assigned a "Baa2" rating for the company's unsecured bank loans and its new facility, two notches above junk status. Both agencies gave the business a "stable outlook rating". Moody's added that MMO2 was not expected to make any large debt- financed acquisitions and had a strong opening balance sheet. Earlier this month, it emerged that MMO2 would have just 500 million pounds in debts. BRITISH TELECOM: Openworld Will Focus on Access ----------------------------------------------- British Telecommunications' Internet division Openworld has abandoned providing online content and will concentrate instead on offering simple access services as part of the company's aim to help stem losses and attract residential customers to BT's broadband internet network, the Tuesday edition of the Financial Times said. According to Openworld chief executive Andy Green, his new strategy was a big change from previous plans that expected customers to remain within BT's portal for as long as possible. British Telecom is one of Europe's first leading Internet service providers to cease trying to become an Internet destination and concentrate instead on providing a pipe for others to supply content. BRITISH TELECOM: Plans Budget Cutbacks -------------------------------------- Telecommunications giant British Telecom hopes to announce its reduction of its 3.5-billion-pound budget for capital investment when it launches the demerger prospectus for its MmO2 mobile division on Monday, according to the Daily Telegraph's report yesterday. The cutback is part of company-wide efforts to conserve cash, although a final decision has not yet been taken. Part of the savings will come from reducing the prices of equipment bought from its hardware suppliers Marconi and Ericsson. EQUITABLE LIFE: Gets Conflicting Opinions on Mis-Selling Case ------------------------------------------------------------- Equitable Life will publish today three conflicting legal opinions on a potential case of mis-selling against the society, the Independent News reported yesterday. Equitable will print the view of another QC and of the Financial Services Authority, who commissioned Ian Glick QC to look at the same question. Equitable will publish the multiple opinions because it was unhappy with Nicholas Warren QC's first advice on the question of mis-selling. Warren is understood to have said that the case for mis-selling could extend to everyone in the non-Guaranteed Annuity Rate category, including those who have left the society. Non-GARs have lost substantial amounts from their investments because the House of Lords forced Equitable last July to increase its pay-outs to those with guarantees. MARCONI PLC: Banks Maintain Support for Marconi ----------------------------------------------- Marconi plc said on Tuesday that banks have expressed their support for the ongoing actions of the telecommunication company's senior management team. It added that there was no question of the bank syndicate, whose members include HSBC, Barclays and the Royal Bank of Scotland, seeking to renegotiate the terms of their loans. As part of its communication process, a further update will be provided to the banks following the quarterly trading statement to be issued in October. Marconi, a global company with over 45,000 employees, has research and development facilities in 19 countries, manufacturing operations in 16 countries, and serves customers in over 100 countries, delivering innovative solutions that transform communications networks. MARCONI PLC: Shares Tumble on Debt Fears ---------------------------------------- Marconi's shares fell to 3.75p at 26.25p on Tuesday as concerns mounted about the telecom equipment maker's financial position, the Tuesday edition of the Financial Times said. The company met with about 30 banks to discuss its strategy to reduce its 4.4-billion-pound debt, and to improve communications with shareholders. The meeting was also one of the first opportunities for bankers to meet the new management team, including chief executive Mike Parton, who was appointed after Marconi's board ousted his predecessor, Lord George Simpson. Marconi also said it will raise about 500 million pounds from disposals. WILLIAM BAIRD: Delays Interim Dividend -------------------------------------- William Baird has postponed its planned 2p-a-share interim dividend early this week, the Daily Telegraph reported yesterday. The move came as the troubled textile group plunged 7.8 million pounds into the red before tax in the six months to June, compared to a 1.6-million-pound pre-tax profit last time. The group blamed the losses to the end of its 30-year relationship with Marks & Spencer, by the closure of a Lowe Alpine factory in Ireland and by writing off an investment in failed online retailer 9feet.com. Baird's new chief executive Ruth Henderson hopes to restructure the group's balance sheet to free up distributable reserves from which to pay the dividend early next 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 * * *