/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/011022.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, October 22, 2001, Vol. 2, No. 206 Headlines * A U S T R I A * YLINE INTERNET: Shares De-Listed From Nasdaq Europe YLINE INTERNET: Vienna Court Declares Yline Bankrupt * B E L G I U M * LERNOUT & HAUSPIE: Court Rejects Bankruptcy Protection SABENA SA: Proposed Sabena Aid Improper, Says EU * F R A N C E * MOULINEX SA: French Court Delays Ruling MOULINEX SA: Resumes Trading in Paris Bourse SOCIETE ALBIGEOISE: Goes Into Receivership VALEO SA: Continues Restructuring Plan in the U.S. VALEO SA: Shares May Dive After Third-Quarter Drop in Profit VALEO SA: Third-Quarter Profit Falls 91% * G E R M A N Y * EM.TV: Court Dismisses Shareholder Claims KINOWELT MEDIEN: Loses "The Lord of the Rings" Rights POPNET INTERNET: Accepts Takeover Bid for DD Synergy AG SAARSTAHL AG: Saarland Government to Sell Saarstahl Stake * I R E L A N D * AER LINGUS: Appoints New Chief Executive AER LINGUS: Board Backs Rescue Bid * N E T H E R L A N D S * KPN NV: U.S. Firms to Acquire KPNQwest Stake * N O R W A Y * ENITEL ASA: Orkla Enskilda Securities Analyst Admits Mistake KVAERNER ASA: Wraps Up NOK500MM Loan Agreement * P O L A N D * ELEKTRIM SA: In Talks With Government to Buy 25% of G-8 * S W E D E N * LM ERICSSON: Cuts More Jobs in Sweden * S W I T Z E R L A N D * SWISSAIR GROUP: Belgium to Sue Swiss Airline SWISSAIR GROUP: Staff Members Fear New Grounding * U N I T E D K I N G D O M * BRITISH TELECOM: Faces Probe for Wholesale Charges EQUITABLE LIFE: Stands Out by Losing 5% of Funds GLOBAL TELESYSTEMS: Finds Buyer for Some GTS Assets RAILTRACK GROUP: Fletcher Resigns Amidst Crisis RAILTRACK GROUP: Incomplete Report Poses Threat to Refinancing ============= A U S T R I A ============= YLINE INTERNET: Shares De-Listed From Nasdaq Europe ------------------------------------------------- Shares of YLine Internet Services AG has been de-listed from Nasdaq Europe on October 18 after the Market Authority approved the company's request for withdrawal. Last month, Yline appointed Dr. Anton Stumpf as chief representative in order to support the company's ongoing restructuring project. Stumpf will assist the management in improving financial performance and streamlining the cost structure of the company to achieve profitability. For inquiries, mail to investor@yline.at or call +43/1/91 91 19-0 YLINE INTERNET: Vienna Court Declares Yline Bankrupt ---------------------------------------------------- A Vienna court has declared Internet software company YLine Internet Services AG bankrupt on October 10. The same court appointed Dr Christof Stapf as judicial trustee, to manage and supervise the liquidation of the company's assets in order to pay the creditors. In light of Yline's 26.3 million debts and the lack of tangible assets, the shareholders should not expect any distribution of proceeds from the liquidation of the company. ============= B E L G I U M ============= LERNOUT & HAUSPIE: Court Rejects Bankruptcy Protection ------------------------------------------------------ The court of appeals in Ghent has rejected Lernout and Hauspie Speech Product's protection from creditors Thursday, pushing the fallen tech company closer to insolvency, the Associated Press reported. The court ruling, which objected to the differentiated treatment of creditors in the company's recovery plan, means that Lernout & Hauspie no longer enjoys protection from its many Belgian creditors. "The company's management is considering its options," said L&H spokesman Ron Schuermans after the court's ruling. In September, creditors backed L&H's recovery plan that called for the company to sell off its core speech recognition and voice synthesis units. L&H filed a Chapter 11 reorganization plan with the U.S. Bankruptcy Court in Wilmington, Delaware, in August. SABENA SA: Proposed Sabena Aid Improper, Says EU ------------------------------------------------ The European Union Transport Commissioner said the Belgian government would break EU rules if it creates a special fund to help support workers from the troubled airline Sabena, newspapers reported. In an interview with Le Soir and De Standaard, Loyola de Palacio opposed plans discussed in Belgium to create a social fund for Sabena staff members who risk losing their jobs in an expected massive restructuring. "The rule is as follows: under no circumstances can a government take over the social costs of companies. A social envelope is a forbidden aid," said de Palacio. =========== F R A N C E =========== MOULINEX SA: French Court Delays Ruling --------------------------------------- A French commercial court has postponed its decision on the future of Moulinex SA to give potential bidders time to improve their offers, Dow Jones Newswires reported Thursday. The court will reconvene today to study any better bids. Moulinex rival, appliance maker SEB SA is one of the serious contenders to take over Moulinex. Fidei has also indicated it is interested in submitting a bid. Moulinex filed for bankruptcy in September after its main shareholder, Italy's Elettro Finanziaria SpA, withdrew to back for a 350 million euro rescue package. MOULINEX SA: Resumes Trading in Paris Bourse -------------------------------------------- Trading of Moulinex's shares in the Paris Bourse has resumed Friday, Dow Jones Newswires reported. Trading was suspended mid-afternoon Thursday pending the decision by the commercial court. SOCIETE ALBIGEOISE: Goes Into Receivership ------------------------------------------ The commercial court of Albi decided to put French food group Societe Albigeoise de Panification into receivership, La Tribune/FT Information reported. Chief executive Auke Smit admitted the company has a chronic deficit and would be restructured. Societe Albigeoise, 66% owned by Irish group Greencore and 34% by French group Fleury-Michon, has a turnover of 906 million euros. VALEO SA: Continues Restructuring Plan in the U.S. -------------------------------------------------- French car parts manufacturer Valeo SA said it would accelerate the restructuring of its U.S. operations, especially of its unit Valeo Electrical Systems, in order to eliminate chronic losses. The plan will represent a cost of 100 to 200 million euros, which corresponds to restructuring costs spread over several years. "The group is intensifying its restructuring work in order to adapt to the evolution of the market, and is taking all necessary measures to confront the situation in the U.S.," Chairman Thierry Morin said. VALEO SA: Shares May Dive After Third-Quarter Drop in Profit ------------------------------------------------------------ Shares of Valeo SA are expected to fall after Europe's largest publicly traded car-parts maker said it third-quarter profit declined to 11 million euros from 120 million a year earlier, Auto.com reported Friday. The Paris-based company's shares have fallen 19% this year. It further fell 3.4% Thursday. VALEO SA: Third-Quarter Profit Falls 91% ---------------------------------------- Valeo SA, one of the world's top automotive suppliers, said in its consolidated results for the third-quarter of 2001 that the company's net profit fell 91% to 11 million euros from 120 million a year earlier. Sales rose 16% to 2.33 billion euros, compared with 2 billion euros from the same period of last year. Valeo added that six sites were closed in the third quarter, while twelve other restructuring projects are being studied, as part of the ongoing adaptation of the company's industrial base. The group has 156 plants, 53 R&D centers, 10 distribution centers and employs 77,000 people in 25 countries worldwide. Contact Malene Pickles at (+33) 1 40 55 20 74 or e-mail malene.pickles@valeo.com for more details. ============= G E R M A N Y ============= EM.TV: Court Dismisses Shareholder Claims ----------------------------------------- The Munich regional superior court dismissed last week shareholders claims for compensation from troubled media-rights group EM.TV Merchandising AG. According to a Handelsblatt report, the court was unable to find any legal foundation for the claims for damages. EM.TV's shareholders, represented by the prominent DSW shareholder-rights association, attempted to sue the company for damages tataling 1.69 million marks. DSW argued that false information provided by EM.TV led the shareholders to either hold or buy shares in the group. KINOWELT MEDIEN: Loses "The Lord of the Rings" Rights ----------------------------------------------------- German film and cinema company Kinowelt Medien AG has lost the merchandising rights for the film The Lord of the Rings, as the contract with US production company New Line International Releasing has been terminated, the Wednesday edition of Die Welt & World Reporter said. Kinowelt estimated that the deal would bring in around 50 million marks in turnover. Since September, analysts have warned of insolvency, and recommended that investors sell the share. Kinowelt, burdened by unsuccessful investments in cinemas and fan merchandise, plans to scale down investment and concentrate on distributing 13 to 15 films. POPNET INTERNET: Accepts Takeover Bid for DD Synergy AG ------------------------------------------------------- PopNet Internet AG has completed take-over negotiations for the main business segment of its wholly-owned subsidiary, DD Synergy AG, with Hamburg's Next Evolution AG. Preliminary insolvency administrator Dr. Sven-Holger Undritz of White & Case, Feddersen, has accepted the bid for DD Synergy eSolutions GmbH, in coordination with PopNet Internet's management board and staff members. The take over bid applies for all former employees of DD Synergy eSolutions. For further information, contact PopNet Internet's investor relations at telephone +49 (0)40 2 78 27 149 or at investor- relations@popnet.de SAARSTAHL AG: Saarland Government to Sell Saarstahl Stake --------------------------------------------------------- The Saarland state in Southwest of Germany has decided to sell its shares in steel companies in a further attempt to end the bankruptcy proceedings of Saarstahl AG. According to Frankfurter Allgemeine Zeitung's Wednesday report, buyer of the 26.8% stake in Saarstahl AG and 15% stake in Dillinger Huette Saarstahl AG is Struktur Holding Stahl GmbH & Co KG. The state will receive 26.8 million marks from the sale of its stake in Saarstahl. ============= I R E L A N D ============= AER LINGUS: Appoints New Chief Executive ---------------------------------------- The board of directors of Aer Lingus has confirmed the appointment of Willie Walsh as chief executive of the troubled state airline, according to the Friday report of The Irish Times. Aer Lingus chairman Tom Mulcahy is confident Walsh will lead the airline through the fundamental restructuring with his strong reputation for driving change, combined with an intimate knowledge of the airline business. Walsh, who started his career with the airline as a pilot, is the current chief operations officer and a former chief executive of Futura Air, the charter airline that is 85 per cent owned by Aer Lingus. AER LINGUS: Board Backs Rescue Bid ---------------------------------- The Aer Lingus board has endorsed the management's rescue plan to save the troubled state airline, the Irish Times reported Friday. The rescue plan includes a redundancy of 2,500 workers and a cut in operations by 25%. It does not make any allowance for redundancy payments. It is understood that the board took legal advice on whether or not they should allow the airline to continue trading, given its difficulties. ===================== N E T H E R L A N D S ===================== KPN NV: U.S. Firms to Acquire KPNQwest Stake -------------------------------------------- Qwest Communications International Inc. and Anschutz Co. will acquire 10% stake of Dutch telecoms operator KPN NV in KPNQwest NV for 101.3 million euros, the Wall Street Journal reported Thursday. The stake disposal allows KPN to take KPNQwest's debt off its books, reducing the Dutch operator's excessive debt load. After the deal, KPN's seats on the KPNQwest board will drop to one from three. KPN is trying to sell many of its assets to reduce its crippling 22.8 billion euro debt burden. It said it has enough cash to survive until June 2002. =========== N O R W A Y =========== ENITEL ASA: Orkla Enskilda Securities Analyst Admits Mistake ------------------------------------------------------------ Analysis manager Christian Begby of Stock Brokerage firm Orkla Enskilda Securitieshas admits that the company made a mistake in recently publishing 13 'buy' recommendations during share issues for insolvent telecoms company Enitel, Dagens Naeringsliv/FT Information reported. Begby clarified that Orkla Enskilda supposed that Enitel's share price was more likely to rise than fall. In the past, Orkla Enskilda recommended Enitel's shares from the summer of 2000 through to last summer and the shares were also recommended in the last analysis of the company despite several negative factors. Enitel filed for protection from creditors in August. It expects to receive between 350 million and 400 million Norwegian krone from the sale of its other units. KVAERNER ASA: Wraps Up NOK500MM Loan Agreement ---------------------------------------------- Kvaerner, the troubled Anglo-Norwegian engineering and construction Group, is in the process of finalizing loan facilities with Den norske Bank and Nordea. The 500 million Norwegian krone facilities will bridge its requirement for excess funding in October. Kvaerner forecasts there will be a further need for excess funding around the third week of November this year. Negotiations are continuing with the banks over a new facility to satisfy this requirement. Last month, Kvaerner revealed that it would have to raise 1 billion Norwegian krone in capital to avoid bankruptcy. For further information, contact Paul Emberley, Vice President Group Communications, at +44 (0)20 7339 1035 or +44 (0)20 7768 813090 or paul.emberley@kvaerner.com =========== P O L A N D =========== ELEKTRIM SA: In Talks With Government to Buy 25% of G-8 ------------------------------------------------------- Poland has picked a consortium, to be lead by telecom service provider Elektrim, to head talks on the 25% buyout of power distribution group G-8, Financial Times reported Thursday. At a press conference, treasury minister Aldona Sowinska revealed that she had chosen Elektrim to prevail over negotiations. The consortium partners include oil company PKN Orlen, gas utility PGNiG and industrial group Kulczyk Holding. The G-8 sale is expected to boost Elektrim, which recently lost control of its telecoms operations to Vivendi Universal. =========== S W E D E N =========== LM ERICSSON: Cuts More Jobs in Sweden ------------------------------------- Mobile infrastructure leader LM Ericsson has announced another 2,000 job cuts from its Swedish domestic operations, Newsbytes reported Thursday. The recent job cuts, part of the company's ongoing efficiency program, brings the total job reductions in its home country to 4,000 this year. The company also confirmed its international job cuts this year now total 6,000. Ericsson will publish its third quarter results on October 26. ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Belgium to Sue Swiss Airline -------------------------------------------- The Belgian government plans to file lawsuits in Belgium and in Switzerland against Swissair Group AG, the Dow Jones Newswires reported Thursday. The government is at odds with the Swiss aviation group over Belgium's Sabena airline. Swissair failed to honor an agreement and inject fresh capital into Sabena, leaving the Belgian airline on the brink of bankruptcy. The government's legal counsels are looking into possible steps against Swiss banks UBS AG and Credit Suisse Group for their role in the recent restructuring of Swissair Group, which led it to pull out of Sabena. Earlier this year, the Belgium government took Swissair to court over Swissair's refusal to inject money for the recapitalization of Sabena. SWISSAIR GROUP: Staff Members Fear New Grounding ------------------------------------------------ Staff members of collapsed Swiss aviation group Swissair feared a new grounding of the fleet as financing of a rescue deal remained uncertain on Thursday. According to Reuters' report, the airline needs to have its crews and equipment in place, book hotels for the crew, arrange refueling and catering services, and above all have passengers to fill the seats. An airline spokesman said that the company would have to cancel a number of flights if the financing would be delayed. The spokesman added it would be difficult to get the flights organized in time even if the federal government, local authorities, banks and business leaders could outline a deal today. Early this month, Swissair planes were grounded for two days because it had no cash to pay for fuel or landing fees. =========================== U N I T E D K I N G D O M =========================== BRITISH TELECOM: Faces Probe for Wholesale Charges -------------------------------------------------- Telecoms industry regulator Oftel has launched an investigation into British Telecom's wholesale charges for high-speed Internet services, the Friday edition of The Times newspaper said. The move came as Bulldog Communications complained against BT's decision to cut the price of its wholesale DSL service that offers fast and always-on Internet. The inquiry will focus on the reduction in the fee, charged to other carriers interested in reselling the BT service, from 150 to 75 pounds. EQUITABLE LIFE: Stands Out by Losing 5% of Funds ------------------------------------------------ Equitable Life stood out as the best performing pension fund over the last 12 months, losing only 5.1%, according to the Friday edition of The Guardian. Figures released last week by performance measurers CAPS revealed that one of Equitable's funds is ranked first among 76 other investment management companies over the last 12 months. The average equity pension fund has fallen in value by 21.5% over the period, while funds managed by blue-blooded City managers Cazenove and ABN Amro were down nearly 30%. Equitable was forced to sell equities in favor of lower risk bonds and property after it closed to new business in December to ensure the company could meet its liabilities. GLOBAL TELESYSTEMS: Finds Buyer for Some GTS Assets --------------------------------------------------- Internet provider KPNQwest NV has agreed to acquire some assets of London-based telecommunications provider Global TeleSystems Inc. for 645 million euros of bonds and assumed obligations, Bloomberg reported Thursday. KPNQwest will not only issue about 210 million euros of convertible bonds to the bondholders of Global TeleSystems, but will also assume 435 million euros of debt and capital lease obligations. The stock of Global TeleSystems fell 91% this year as prices for carrying voice and data traffic declined amid increased competition from European phone companies. RAILTRACK GROUP: Fletcher Resigns Amidst Crisis ----------------------------------------------- Railtrack said Thursday that West Coast Main Line upgrade general manager Tony Fletcher will leave the company on March next year to take up an appointment with another company in the industry. The announcement came as a new blow for the rail network operator, following the company's collapse into receivership early this month. "The West Coast upgrade is one of the most difficult ever undertaken on the working railway, the fact that phase one of the project is now 65% completed is a testament to Tony and his team's hard work," Railtrack chief executive Steve Marshall commented. Railtrack said it would soon appoint a replacement. RAILTRACK GROUP: Incomplete Report Poses Threat to Refinancing -------------------------------------------------------------- The absence of a complete report on the condition of Railtrack poses a threat to government plans to find investors to refinance Britain's national rail network the company, the Thursday edition of The Times said. A source close to Railtrack said that the report, ordered in 1996, would not be complete before 2004. Potential investors in the new rail infrastructure group planned by transport secretary Stephen Byers were dismayed by the lack of detail about the assets they are being asked to back. *********** 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 Maria 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 240/629-3300. * * * End of Transmission * * *